Audi 2015 1st half Investor and Analyst Day Rupert Stadler Chairman of the Board of Management, AUDI AG
Worldwide deliveries: best-ever 1st half of the year Audi deliveries to customers (in thousand vehicles) + 3.8 % 869 902 1-6/2014 1-6/2015
Lamborghini: the luxury brand doubles its deliveries Lamborghini deliveries to customers + 96.9 % 1,882 956 1-6/2014 1-6/2015
Ducati: La Rossa posts new half-year sales record Ducati deliveries to customers + 21.8 % 32,608 26,779 1-6/2014 1-6/2015
Audi Group: financial key figures January June 2015 Operating profit (EUR million) Operating return on sales + 9.1% 2,671 2,914 10.0% 9.8% 1-6/2014 1-6/2015 1-6/2014 1-6/2015
China: economy is cooling off 2015 7% growth real estate prices corporate profits stock markets
Sales performance: deliveries increase slightly Audi deliveries to customers China (incl. HK) 273,853 deliveries + 1.9 %
Europe: Audi is premium brand number one Audi deliveries to customers Western Europe + 4.1 % Germany + 5.5 % Italy + 7.9 % Spain + 10.3 %
Russia: car market contracts substantially in million automobiles 1.2 0.7 1-6/2014 1-6/2015
United States: Audi grows twice as fast as overall market Audi deliveries to customers USA 93,615 deliveries + 11.0 %
American continent: sales show double-digit growth Audi deliveries to customers America 127,117 deliveries + 12.4 %
Investment program: Audi follows strategic path until 2019 24 billion EUR
Brazil: local production supports leading position in the market Audi deliveries to customers Brazil 8,683 deliveries + 39.4 %
Mexico: local production will add stimulus
Products 2015: Audi launches important models
Outlook: Audi extends portfolio in booming SUV Segment Sketch of Audi Q1 worldwide segment growth 2014 to 2020* +36% * Source: IHS Automotive
Piloted driving: Audi proves reliability and precision
Audi on demand: Audi offers mobility service in San Francisco Audi Concierge Exclusive Audi Fleet Digital Access
Audi 2015 1st half Investor and Analyst Day Axel Strotbek Member of the Board for Finance and Organization, AUDI AG
Audi Group revenue EUR million 26,690 +11.6% 29,784 Automotive segment EUR 29,348 million Motorcycles segment EUR 436 million 1-6/2014 1-6/2015
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1%
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1% Gross profit 6,148 4,820 +27.6%
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1% Gross profit 6,148 4,820 +27.6% Distribution costs -2,592-2,419 +7.2%
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1% Gross profit 6,148 4,820 +27.6% Distribution costs -2,592-2,419 +7.2% Administrative expenses -312-300 +3.8%
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1% Gross profit 6,148 4,820 +27.6% Distribution costs -2,592-2,419 +7.2% Administrative expenses -312-300 +3.8% Other operating result -331 570 X
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Revenue 29,784 26,690 +11.6% Cost of goods sold -23,636-21,870 +8.1% Gross profit 6,148 4,820 +27.6% Distribution costs -2,592-2,419 +7.2% Administrative expenses -312-300 +3.8% Other operating result -331 570 X Operating profit 2,914 2,671 +9.1%
Audi Group operating profit EUR million 2,671 +9.1% 2,914 Automotive segment EUR 2,868 million Motorcycles segment EUR 58 million * 1-6/2014 1-6/2015 * EUR 46 million including depreciation in view of the revaluation of assets/liabilities for purchase price allocation.
Income Statement of the Audi Group (IFRS) EUR million 1-6/2015 1-6/2014 Change Operating profit 2,914 2,671 +9.1% Financial result 236 430-45.2% thereof result from investments 226 265-14.5% accounted for using the equity method Profit before tax 3,150 3,102 +1.6%
Audi Group: Return on sales in percent Operating return on sales Return on sales before tax 10.0 9.8 11.6 10.6 1-6/2014 1-6/2015 1-6/2014 1-6/2015
Cash Flow Statement of the Audi Group EUR million 1-6/2015 1-6/2014 Change Cash flow from operating activities 3,860 3,712 +4.0%
Cash Flow Statement of the Audi Group EUR million 1-6/2015 1-6/2014 Change Cash flow from operating activities 3,860 3,712 +4.0% Investing activities -2,001-1,552 +28.9% attributable to operating activities
Cash Flow Statement of the Audi Group EUR million 1-6/2015 1-6/2014 Change Cash flow from operating activities 3,860 3,712 +4.0% Investing activities -2,001-1,552 +28.9% attributable to operating activities Net cash flow 1,860 2,160-13.9%
Cash Flow Statement of the Audi Group EUR million 1-6/2015 1-6/2014 Change Cash flow from operating activities 3,860 3,712 +4.0% Investing activities -2,001-1,552 +28.9% attributable to operating activities Net cash flow 1,860 2,160-13.9% Net liquidity 16,668 15,324 +8.8%
Forecast 2015 Deliveries of cars of the Audi brand to customers moderate increase Revenue moderate increase Operating profit/ Operating return on sales within the strategic target corridor of 8 to 10 percent Outlook Return on investment (ROI) with more than 18 percent significantly above the minimum rate of return of 9 percent Net cash flow more than EUR 2 billion and below previous year s level Ratio of investments in property, plant and equipment slightly above the strategic target corridor of 5.0 to 5.5 percent
Audi 2015 1st half Investor and Analyst Day Scott Keogh President, Audi of America
1 SALES 2 PERFORMANCE 3 FUTURE Audi Truth in Engineering
2015 1 st Half Year Sales Record high new car and certified pre-owned sales New car sales growth Certified pre-owned (CPO) sales growth + 11.0% YoY + 9.3% YoY 10,101 11,514 10,881 11,455 14,246 17,102 15,653 16,827 16,601 18,428 16,867 18,262 3,161 3,730 3,267 3,698 3,886 3,881 3,702 3,971 4,162 4,405 3,649 4,176 Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun New car sales total 93,615 and CPO sales total 23,861 through 1 st half of 2015. Audi Truth in Engineering
2015 1 st Half Year Sales A3 75% of A3 buyers are new luxury owners A Segment sedan market share of 40% C/D Mix Q3 71% of Q3 buyers are new luxury owners A Segment SUV market share of 25% Sales Mix Since 2012, our C/D mix has improved from 18.6% to ~30% SUV sales +28.5% YoY SUV 39% Cars 61% More vehicles have been sold in 1 st half of 2015 versus every full year before 2010. Audi Truth in Engineering
1 SALES 2 PERFORMANCE 3 FUTURE Audi Truth in Engineering
Tier One Brand Consideration Audi has solidly risen among New Luxury Buyers 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2 3 4 5 6 7 8 cross-shopped #2most luxury brand Source: Strategic Vision NVES, 2014 Full Year Report Audi Truth in Engineering
Network Development Currently 119 active dealer projects 61 new terminals through 2014 34 new terminals planned in 2015 177 terminals planned by 2020 Audi Truth in Engineering
1 SALES 2 PERFORMANCE 3 FUTURE Audi Truth in Engineering
Product Launches 2015 TT A3 e-tron 2016 Q7 A4 R8 2016 launch of C SUV and B Sedan will compete in 43% of the luxury market. Audi Truth in Engineering
Future Technology Battery Electric Vehicles Audi connect Autonomous Driving Audi Truth in Engineering
AoA Technology Progressive Retail and ART Audi Truth in Engineering
Disclaimer This presentation contains forward-looking statements and information on the business development of the Audi 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 China or the USA, 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, yen and Chinese renminbi. 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 superseded.