Audi in China

Dr. Dietmar Voggenreiter President China

May, 2015 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 forecasts. 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, Japanese 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 Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. Audi in China

FAW- Audi Production and Audi Sales Division (A6 L, A4 L, Q5, Q3)

Beijing Audi China with Audi R&D Beijing

FAW-Volkswagen Foshan Audi Production Foshan (A3 Sportback, A3 ) Audi deliveries in China nearly increased six-fold since 2007

Audi in China, deliveries (including Hong Kong) vehicles

578,900 492,000 405,800 313,000 227,900 Jan. – Apr. 158,900 178,612 units, +5.2% 102,000 119,600 (Premium Mkt: +4.2%) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Driver of the normalization of purchasing power segments in China

Changes in residential property prices in 70 largest cities Total profits of industrial enterprises [YoY comparison] YoY growth in %

# of cities with # of cities with 20% 18.0% decreasing price increasing price 15%

10% April 14 -1 69 5% +2.6% 0% -0.4% -5 April 15 -69 +1 -10 -8% Mar Aug Dec Apr 14 14 14 15

Source: National Bureau of Statistics Urbanization benefits middle class development

Urbanization rate China, 1949-2020 [in %]

100 2050: 90 ~75% 2020: 80 >60% 70 2013: 60 53 % 50 40 30 20 10 0 1949 1960 1970 1980 1990 2000 2010 2020* 2050*

* Estimation Source: China Statistical Yearbook Changes in social stratums benefit premium market

400 Total Number of Urban Households: 357 million 350 Premium Market Purchasing Power 300 269 million

250

200 Affluent (>34k) 150

Upper Middle Class (16k - 100 34k)

50 Mass Middle Class (9k - 16k)

0 Low Income (<9k) 2014 2022 (Est.)

Source: Mc Kinsey Premium segment distribution moves towards the pattern of developed markets

Premium segment China, 2014 Premium segment Europe, 2014 Volume, vehicles Volume, vehicles

Total: 1,684,000 Total: 2,408,000

D D C C B B A A A0 A0

2014 2014

Segments with above-average growth Leading trends: Only Audi offers three local compact cars

Premium market share of Compact model share of compact cars Audi sales

100% 100% 2%

95% 95% 14% 23% 90% 15% 90%

85% 85%

80% 80% Sedan 75% 75%

70% 70%

65% 65% 2009 Jan. -Apr. 2015 Jan. -Apr. 2014 Jan. -Apr. 2015 Audi A3 Sportback Leading trends: China outpaces Germany as the largest market for compact cars of Audi

Jan. –Apr. 2014 Jan. –Apr. 2015

41,748 Audi Q3

31,810 32,740 24,209

Audi A3 Sedan

Germany China Audi A3 Sportback Leading trends: Audi as segment leader with local SUV portfolio

SUV share of the premium market Segment leaders 2015: New (imported)

Audi Q3

18% 38%

82% 62%

2008 Jan. -Apr. 2015 Individual buyers are dominating

Audi in China, customer mix 2014

Government 0%

Fleet <10%

Individual Buyers >90%

Audi has managed successfully to attract the people who are shaping the future of China 37 Audi models are available in China (vs. 9 in 2008) 15 S/RS/R models (vs. 2 in 2008)

A1 A3 A4 A5 A6 A7 A8 Q3 TT R8

A1 A3 Sportback A4L A5 Coupé A6L A7 Sportback S8 Q3 TT Coupé R8 Coupé Q5 A1 Sportback A3 Sedan A4 allroad A5 Sportback A6 hybrid S7 Sportback A8 L TT R8 Spyder quattro

Q5 A5 Cabriolet S6 Sedan RS 7 Sportback TTS Coupé S3 Sedan A8 L hybrid

SQ5 S5 Coupé A8 L W12 TTS Roadster A3 Cabriolet

Q5 hybrid S5 Sportback quattro

Q7 S5 Cabriolet

Q7 RS 5 Coupé

RS 5 Cabriolet Chinese consumers want to stick-out from the crowd

A4 allroad China is already Coming 2015: A6 allroad the 3rd biggest market

► Launched in 2013, the A4 allroad has proven ► Market introduction later in 2015 to bring demand for progressive vehicle concepts more progressiveness on China’s roads Leading into the future: Strong focus on efficiency

Conventional Imported e-tron Localized e-tron

Over 20 percent reduction A3 Sportback e-tron A6 L e-tron of average fuel to be imported from 2015 to be produced with consumption of local FAW-Volkswagen in models since 2011 Followed by Q7 e-tron Changchun from 2016 Audi: High dealer satisfaction, according to the China Automobile Dealer Association

Dealer satisfaction; Premium brands

#1:

Only satisfied dealers will implement OEM strategies and truly delight customers Brand Power Index 2014 China Brand Research Center

[11k consumers in 30 cities; Fieldwork Oct.14-Feb.15; Funded by Ministry of Information and Technology]

#1: Brand Power #1: Awareness #1: Loyalty

Based on independent research, Audi is both premium volume & brand leader in China 3 mio. thanks!

Product packages Finance Trade-in Service offer …

Thanks to 3 mio. customers over the past 27 years for all the trust and loyalty and a warm welcome to every new Audi owner Thank you!