#1WAS 3000 а Audi - Premium market leader in China Joachim Wedler, President of Audi China September 7, 2016, Beijing#2Disclaimer 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 Such statements are valid on the date of publication and can be superseded.#3Audi in China Changchun Beijing Tianjin FAW-Volkswagen Audi Production and Audi Sales Division (A6 L, A4 L, Q5, Q3) Audi China with Audi R&D Beijing Foshan Volkswagen Automatic Transmission Tianjin Audi transmission plant FAW-Volkswagen Audi Production (A3 Sportback, A3 Sedan)#4Premium leader in localization First localized long-wheel base versions Audi A6 L (since 1999) Audi A4 L (since 2009) First localized premium transmission First localized premium SUV First localized premium engine Audi Q5 (since 2008) 7 speed S tronic (since 2016) 2.0 TFSI 140/185 KW (since 2007)#5Audi continues to lead the premium market in China Most successful first seven months in company history for Audi in China Audi deliveries to customers in China (incl. Hong Kong), vehicles NO. 1 578,900 570,900 492,000 405,800 313,000 227,900 158,900 102,000 119,600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan.Jul. 2016 336.600 units +6.5%#6Audi plans to continue the growth in 2016 Every third delivery in China Audi deliveries to customers worldwide, vehicles 1,803,200 1,741,100 1,575,500 1,455,100 1,302,700 1,092,400 949,700 17% 2009 32% China: 570,900 2010 2011 2012 2013 2014 2015 Worldwide China#7Over 60% of sales volume updated New Audi A4 L to be launched on September 10, 2016 Share of models updated between December 2015 and September 2016 [in %] New models CKD: A4 L >60% FBU: Q7, RS7 plus, TTS Coupe, TTS Cabrio, R8 Coupe Facelifts CKD: Q3, A6L FBU: RS6 Avant SOSAA MI Audi A4 L IN Q3100 Audi Q3#8Audi leads the SUV growth segment SUV share of the premium market Segment leaders 18% 40% 82% 2008 60% Jan-Jul 2016 Audi Q3 (43% share*) CLLO Since 2015: New Audi Q7 m Audi 03 IN-Q7200 Audi Q5 (31% share*) (110 *January to July 2016#9Leading a diverse market: Private buyers dominate Audi in China, customer mix Government 2011 2016 1 % 0 % Fleet customers <10% <10% Private customers >90% >90%#10Verified Top Service: Audi in J.D. Power Rankings China SSI 2016 (Sales Satisfaction Index) CSI 2016 (After Sales Service Index) NO. 1 since 2010 NO. 1 since 2013#11Financial services business is growing Financing in percent of Audi car sales in China 28% 22% 48% 46% 39% 36% 2011 2012 2013 2014 2015 2016 Jan.-Jul.#12Sustainable expansion of sales network Number of Audi dealerships in China ~230 ~340 -290 ~450 ~430 - 400 ~170 ~150 H 2009 2010 2011 2012 2013 2014 2015 Aug. 2016 Audi ****#13Paving the way for Audi's future Strategic key areas for Audi in China New Energy Vehicles Automated Driving C-tren 3000 IN QE7001 Audi ploted dow Audipited driving Com Audi plated ding Digitalization Leden Fahrzeug Forverriegelung B#14Leading into the future: Strong focus on efficiency Efficiency programme Technology Over 20 percent reduction of average fuel consumption of local models since 2011 First localized e-tron m Audi A6 L e-tron produced in China and to be launched in 2016 Efficient components Localized 7-speed S tronic Best-in-class efficiency (with 2.0 T engine) Developed for Asia B-tran Audi Q7 e-tron Special TFSI version to be launched in China in 2017#15Audi is the leader for piloted driving Audi piloted driving AUDI AG • The next generation Audi A8 will be the first series model to master piloted driving up to a speed of 65 km/h Audi Vorsprung durcb Technik Audi R&D Beijing • • Testing Advanced Driver Assistance Systems in China since 2013 Adaption to Chinese traffic conditions Predevelopment of next generation driver assist systems.#16Audi cooperates with China's leading digital companies 2 Alibaba Group 阿里巴巴集团 Tencent 腾讯 Audi is the first premium manufacturer to offer high-resolution 3D maps in its navigations systems in China. Map data supplied by Alibaba Integration of Wechat funtions into the Audi MMI under development Baidu B Baidu Car Life to be integrated into the Audi MMI in 2017#17се Thank you