First Quarter Report 2015

January 1 to March 31, 2015 FIRST QUARTER REPORT 2015

ECONOMIC ENVIRONMENT

The global economy achieved steady growth in the first Europe, Central Europe, North America and the Asia-Pacific quarter of 2015. In many industrialized nations the economic region rose further, sales totals were markedly lower in the revival continued, whereas the pace of growth declined in Eastern European and South American automobile markets. certain emerging economies. Lower energy and commodity Among other factors, rising demand from business customers prices had a beneficial impact overall on the development of meant that new registrations in Germany were up 6.4 percent. the world economy. Sales of passenger cars in other Western European countries

In Western Europe the economy continued to recover. Northern benefited from the improved economic environment and European countries again achieved solid GDP growth. Meanwhile, achieved growth of 9.4 percent. Demand for automobiles

there were further signs of an imminent end to the recession also improved in the United States, with new registrations 2 in most Southern European countries. Economic development of passenger cars and light commercial vehicles growing by in Central Europe also made positive progress. On the other 5.6 percent. The Chinese car market was yet again a pivotal hand, recessionary developments in Russia and Ukraine weighed driver of the worldwide growth in demand for automobiles. on the situation in Eastern Europe, against a backdrop of 15.0 percent more passenger cars were newly registered there unresolved tensions between the two countries. than in the previous year. In the United States the economy achieved substantial growth that was promoted by a drop in unemployment, persistently The established motorcycle markets in the displacement positive consumer sentiment and an expansionary monetary segment above 500 cc enjoyed a 4.2 percent rise in demand policy. The Chinese economy again acted as a major driver of in the first quarter of 2015. A large number of markets in global economic growth, even if its rate of growth was down Western Europe witnessed an increase in registrations of new slightly. motorcycles on the back of the general economic recovery. The United States equally enjoyed a positive development in Demand for automobiles worldwide rose further in the first demand, while sales of motorcycles in Japan were down. three months of 2015. While new registrations in Western

PRODUCTION 1)

The Audi Group increased its production of automobiles to In total, 499,602 (447,103) automobiles of the brand with the 500,643 (447,414) vehicles in the first quarter of 2015. Of four rings and 1,041 (311) of the brand that total, our China-based partner company FAW- were built in the period January through March. The Ducati Automotive Company, Ltd. built 151,452 (104,457) brand produced 15,378 (13,566) motorcycles in the first three automobiles of the Audi brand. months of the current fiscal year.

1) The figures for the prior-year period have been marginally adjusted.

Audi RS Q3 FIRST QUARTER REPORT 2015

We built 149,582 (160,260) automobiles at the main Group In China, FAW-Volkswagen Automotive Company, Ltd. location in Ingolstadt. 71,878 (70,360) Audi vehicles were produced 133,201 (104,010) automobiles of the A4 L, produced at over the same period. A6 L, Q3 and Q5 models at its company headquarters in AUDI HUNGARIA MOTOR Kft. built a total of 43,872 (31,886) Changchun as well as 18,251 (447) vehicles of the A3 cars of the TT car line and A3 family at Győr (Hungary). family in the southern Chinese city of Foshan. S.A./N.V. made 29,289 (33,741) vehicles of the To supply the assembly plant in Aurangabad (India), 1,734 A1 car line at Brussels (Belgium) in the first quarter of 2015. (1,552) parts sets and components were produced at the The two Volkswagen Group locations Bratislava (Slovakia) and Ingolstadt, Neckarsulm, Győr, Bratislava and Martorell

Martorell (Spain) built 17,426 (15,546) of the and locations in the first quarter of 2015. 36,099 (30,853) of the respectively over the same period.

3 Car production by model 1)

1–3/2015 1–3/2014

Audi A1 9,057 10,882 Sportback 20,232 22,859 6,274 8,114 Audi A3 Sportback 55,070 45,172 Audi A3 Sedan 38,442 21,305 Audi A3 Cabriolet 7,270 2,848 Audi Q3 58,609 44,861 Audi TT Coupé 6,583 5,957 Audi TT 1,422 1,797 Sedan 58,294 58,777 Audi A4 Avant 22,104 23,549 Audi A4 allroad quattro 4,256 4,966 Sportback 12,032 13,206 Audi A5 Coupé 5,808 8,092 Audi A5 Cabriolet 5,464 6,312 69,560 66,293 Sedan 66,600 52,644 Audi A6 Avant 14,475 12,811 Audi A6 allroad quattro 2,889 2,427 Sportback 8,177 7,355 Audi Q7 17,426 15,546 8,969 10,740 Coupé 366 368 Audi R8 Spyder 223 222 Audi brand 499,602 447,103 Lamborghini Huracán 768 30 273 281 Lamborghini brand 1,041 311 Automotive segment 500,643 447,414

1) The table includes the vehicles built in China by our partner company FAW-Volkswagen Automotive Company, Ltd.

Car engine production In the first three months of the current fiscal year, the Audi Group built a total of 525,272 (537,810) engines in the 1–3/2015 1–3/2014 Automotive segment.

AUDI HUNGARIA MOTOR Kft. 524,979 537,529 S.p.A. 293 281 Car engine production 525,272 537,810

FIRST QUARTER REPORT 2015

Audi Q7 e-tron quattro

Motorcycle production 1) Ducati manufactured 15,378 (13,566) motorcycles worldwide

in the first quarter of 2015. 12,700 (12,266) bikes were 1–3/2015 1–3/2014 4 produced at the company headquarters in Bologna (Italy). In

Scrambler 4,856 4 the same period, Ducati built 2,447 (1,035) motorcycles of the Naked/Sport Cruiser Scrambler, Diavel, Hypermotard, Monster and Superbike (Diavel, Monster, Streetfighter) 4,938 6,701 models at Amphur Pluakdaeng (Thailand). 231 (265) units of Dual/Hyper (Hypermotard, Multistrada) 1,930 3,773 the Diavel, Hypermotard, Multistrada and Superbike model Sport (Superbike) 3,654 3,088 lines were made at Manaus (Brazil) on a contract manufacturing Ducati brand 15,378 13,566 basis. Motorcycles segment 15,378 13,566

DELIVERIES 1)

In first three months of 2015, the Audi Group increased deliveries to customers in that market to 45,783 (43,671) worldwide deliveries to customers by 7.5 percent to 497,073 automobiles. (462,474) cars. This total included 438,229 (412,848) In Central and Eastern Europe, we handed 11,988 (14,683) vehicles of the core brand Audi – an increase of 6.1 percent. In customers the keys to their new Audi in the first three months the same period, the Lamborghini brand handed over 884 of 2015. The sales performance there was dominated by the (529) supercars to customers, while 57,960 (49,097) contracting overall market in the Eastern Europe region. automobiles of other Volkswagen Group brands were With a 13.8 percent increase in deliveries to 40,098 (35,228) delivered. The Ducati brand delivered 10,568 (10,544) Audi brand vehicles, we made successful progress along our motorcycles worldwide to their new owners between January path of growth in the U.S. automobile market in the first and March 2015. quarter of 2015. In the Asia-Pacific region, we achieved a 7.6 percent increase in Demand for vehicles of the Audi brand again made very deliveries of Audi vehicles, taking the total to 162,173 healthy progress in the home market Germany. Deliveries to (150,660) automobiles. China (incl. Hong Kong) was a major customers climbed 10.2 percent to 73,208 (66,458) driver of this growth. We increased deliveries in that market by automobiles, outperforming the market as a whole. 7.1 percent to 133,316 (124,520) units. In South Korea, too, In other Western European countries, 122,033 (119,212) there was a very satisfying trend in demand for our vehicles. In Audi vehicles were handed over to customers in the period the first quarter of this year, we delivered 9,194 (6,815) under review. The brand with the four rings again made good automobiles to customers there. progress especially in the United Kingdom. We increased

1) The figures for the prior-year period have been marginally adjusted.

FIRST QUARTER REPORT 2015

Deliveries of cars to customers by model 1)

1–3/2015 1–3/2014

Audi A1 8,346 10,274 Audi A1 Sportback 17,793 21,332 Audi A3 6,009 8,138 Audi A3 Sportback 50,081 41,390 Audi A3 Sedan 32,650 14,947 Audi A3 Cabriolet 5,791 1,276

Audi Q3 49,269 44,968 Audi TT Coupé 5,543 4,486 Audi TT Roadster 798 1,508 Audi A4 Sedan 49,477 53,658 5 Audi A4 Avant 22,788 21,065 Audi A4 allroad quattro 4,302 4,647 Audi A5 Sportback 11,694 12,608 Audi A5 Coupé 5,415 5,993 Audi A5 Cabriolet 3,724 4,309 Audi Q5 60,571 56,977 Audi A6 Sedan 59,962 55,874 Audi A6 Avant 13,956 12,645 Audi A6 allroad quattro 2,775 2,439 Audi A7 Sportback 6,639 7,835 Audi Q7 12,466 15,970 Audi A8 7,509 9,823 Audi R8 Coupé 416 422 Audi R8 Spyder 255 264 Audi brand 438,229 412,848 – 183 Lamborghini Huracán 605 – Lamborghini Aventador 279 346 Lamborghini brand 884 529 Other Volkswagen Group brands 57,960 49,097 Automotive segment 497,073 462,474

1) The figures for the prior-year period have been marginally adjusted.

Motorcycle deliveries to customers 1) Worldwide, the Ducati brand delivered 10,568 (10,544) motorcycles to customers in the three-month period under 1–3/2015 1–3/2014 review.

Scrambler 2,171 – Naked/Sport Cruiser (Diavel, Monster, Streetfighter) 4,556 4,996 Dual/Hyper (Hypermotard, Multistrada) 1,714 3,027 Sport (Superbike) 2,127 2,521 Ducati brand 10,568 10,544 Motorcycles segment 10,568 10,544

1) The figures for the prior-year period have been marginally adjusted.

FIRST QUARTER REPORT 2015

PRODUCT PORTFOLIO

We have been gradually introducing the revised models of the range of up to 1,410 kilometers. Based on the ECE standard Audi A1 and Q3 car lines into markets since the start of 2015. for plug-in hybrid vehicles, the new e-tron model uses an The A1 and A1 Sportback are distinguished by their sporty average of 1.7 liters of diesel per 100 kilometers – equivalent design, agile suspension and high-performance, efficient to CO₂ emissions of 46 g/km. engines. Audi has for example unveiled two new three-cylinder power units for the A1 – the 1.0 TFSI ultra and the 1.4 TDI Another model unveiled in Geneva was the

ultra. The redesigned Audi Q3 and RS Q3 models offer a Avant showcar – a new interpretation of the Avant philosophy. compelling blend of increased power, improved fuel efficiency The five-door model with stretched roof and flat D-posts

and a design with even greater impact. creates an impression of powerful athleticism allied to elegant, 6 Furthermore, we have added the Audi TT Roadster, flowing lines. The new design also expresses Audi’s quattro TTS Roadster and TTS Coupé to the third generation of DNA and gives tangible expression to the technology, both the TT car line. inside and out. The luxurious interior of the showcar is kept in dark shades. The display and operating concept meld to form a The new Audi Q7 has been on sale throughout Europe since unit with the linear architecture. March 2015. It exemplifies our competence in lightweight construction and efficiency, as well as in assistance and The new Audi RS 3 Sportback which Audi exhibited at Geneva infotainment systems. With a lightweight body built using is one of the most powerful cars of the compact category in multi-material construction, the full-size SUV with 3.0 TDI the premium segment; it is due to appear on the markets engine has an unladen weight of 1,995 kilograms and is from summer 2015. The five-cylinder turbo engine propels therefore up to 325 kilograms lighter than its predecessor the RS 3 Sportback from 0 to 100 km/h in 4.3 seconds and model. Its fuel economy has been improved by up to 28 on to an electronically governed top speed of 250 km/h – percent. Thanks to an array of modified features on its this car is optionally available with the higher top speed of suspension, along with its lower center of gravity, it blends a 280 km/h. supremely comfortable ride with very dynamic handling. In addition to innovative assistance systems such as adaptive We showed four different models of our second-generation cruise control with traffic jam assist and an extended range high-performance at Geneva: the Audi R8 V10, of Audi connect services, the new Q7 can also be supplied R8 V10 plus, R8 e-tron and R8 LMS. The comprehensively with the innovative Audi virtual cockpit. reengineered Audi R8 delivers sporty road performance with We took the wraps off another innovative Q model in the its high-revving mid engine, systematic use of lightweight shape of the Audi Q7 e-tron quattro at the Geneva Motor construction and dynamic suspension with new quattro drive Show in early March. This TDI plug-in hybrid automobile is and variable vectoring. Two versions of the 5.2 FSI fitted with a six-cylinder and permanent engine are available – with an output of 397 kW (540 hp) in quattro drive. With its lithium-ion battery, it is capable of the Audi R8 V10, and an output of 449 kW (610 hp) in the driving up to 56 kilometers (NEDC) in purely electric mode Audi R8 V10 plus. The top model accelerates from 0 to 100 and therefore with zero local emissions. In combination with km/h in a mere 3.2 seconds. the diesel engine, the new Q7 e-tron quattro has an overall

Audi prologue Avant showcar FIRST QUARTER REPORT 2015

Ducati Multistrada 1200 S

The R8 e-tron, our electrically powered , draws on 0 to 100 km/h in 2.8 seconds. new technology to develop 340 kW of power and 920 Nm of The exclusive limited-edition model Aventador LP 700-4 torque. The e-tron model has a range of more than 450 Edition pays homage to the long-standing partnership between 7 kilometers. The new Audi R8 LMS racing version was also the two brands and boasts a highly exclusive equipment unveiled at the same time as the R8 production model. Its specification, which Centro Stile Lamborghini developed development was pioneered in close cooperation between especially for this supercar. the motorsport and production colleagues, to comply with the new GT3 rules that will apply worldwide from 2016. The Ducati brand is also systematically extending its product portfolio and has been rolling out the new Scrambler series – The Lamborghini brand showed two new models at Geneva – comprising the Icon, Urban Enduro, Classic and Full Throttle the Aventador LP 750-4 Superveloce and the Aventador LP 700-4 models – in markets since the first quarter of 2015. Pirelli Edition. The Aventador LP 750-4 Superveloce, with more With the 1299 Panigale, Ducati has launched another power, a lower weight, improved aerodynamics and optimized emotional superbike with unmistakable design, cutting-edge handling, is the most emotional production Lamborghini ever technology and extreme performance. In addition, the third built. The V12 aspirated engine develops a maximum power generation of the Multistrada 1200 and 1200 S is available. output of 552 kW (750 hp) and accelerates the supercar from

FINANCIAL PERFORMANCE

In the first three months of the 2015 fiscal year, Audi Group the Motorcycles segment in the first quarter of 2015 came revenue increased by 13.1 percent to EUR 14,651 (12,951) to EUR 12 (14) million, taking mix effects and expenditure million as a result of growth in deliveries and a beneficial shift following the introduction of new models into account; this in exchange rates. The Automotive segment achieved revenue represented an operating return on sales of 7.0 (8.7) percent. of EUR 14,487 (12,796) million, while the Motorcycles After elimination of the effects of purchase price allocation, segment generated EUR 164 (155) million. The high demand the operating profit came to EUR 17 (20) million and the for the models of our A3 family and the Q car lines in particular, operating return on sales was 10.6 (12.8) percent. along with dynamic growth in the Western Europe, North America and Asia-Pacific regions, had a positive effect on the For the first quarter, the Audi Group achieved a profit before revenue performance of the Audi Group. tax of EUR 1,497 (1,398) million and a return on sales before tax of 10.2 (10.8) percent. From January through March 2015, Audi Group operating The profit after tax was EUR 1,097 (1,028) million. profit increased to EUR 1,422 (1,314) million. The operating return on sales reached 9.7 (10.1) percent. In the Automotive The group of consolidated companies changed effective segment, we achieved an operating profit of EUR 1,410 January 1, 2015 following the merger of Audi Akademie GmbH, (1,300) million and an operating return on sales of 9.7 (10.1) Ingolstadt, with AUDI AG. This change has no effect on the percent despite high up-front spending on new products and presentation of the net worth, financial position and financial pioneering technologies as well as for the expansion of the performance. international production network. The operating profit for

FIRST QUARTER REPORT 2015

WORKFORCE

In the course of Audi’s growth strategy, the Audi Group is planning to recruit over 6,000 new employees worldwide during fiscal 2015 – including some 4,000 in Germany alone.

PERSONNEL CHANGES

On April 25, 2015 Hon.-Prof. Dr. techn. h. c. Dipl.-Ing. ETH 8 Ferdinand K. Piëch and Ursula Piëch resigned as members of the Supervisory Board of AUDI AG with immediate effect.

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES

Report on expected developments

The Audi Group expects a slight increase in world economic In the displacement segment above 500 cc, we expect growth over 2015 as a whole. The economic recovery should demand in the motorcycle markets that are relevant for the continue in most industrialized nations, while economic Ducati brand to continue to rise moderately. momentum is expected to decline in a number of emerging economies over the year as a whole. Overall, the Audi Group considers that it is well positioned to address the challenges that lie ahead and consequently In our assessment, worldwide demand for cars will see slight intends to continue along its course of qualitative growth, in growth in 2015. We anticipate rising new registrations in pursuit of the strategic goals that were explained in detail in Western Europe, North America and the Asia-Pacific region, the 2014 Annual Report. The forecasts for the key performance while sales of passenger cars in the Central and Eastern Europe indicators for the full year 2015 are given on pages 192 and region and in South America are expected to fall. 193 of the 2014 Annual Report.

Report on risks and opportunities

The Audi Group is managed on the basis of goals and changes in the economic environment. opportunities, with a clear focus on increasing the value of Generally speaking, the Audi Group is exposed to industry- the Company. The Group-wide risk management system plays typical risks and opportunities that are described in detail on a key role in identifying potential risks and opportunities pages 198 to 203 of the 2014 Annual Report and remain early on, creating farsighted solutions to minimize or avoid valid. risks, and responding promptly and comprehensively to

EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No events of particular significance occurred after March 31, 2015.

FIRST QUARTER REPORT 2015

DISCLAIMER

This First Quarter Report contains forward-looking statements relating to anticipated future developments. These statements are based upon current assessments and are by their very nature subject to risks and uncertainties. Actual events could differ from the statements formulated herein.

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Lamborghini Aventador LP 750-4 Superveloce AUDI AG Financial Communication/Financial Analysis I /FF-3 85045 Ingolstadt Germany Phone +49 841 89-40300 Fax +49 841 89-30900 email [email protected] www.audi.com/investor-relations