CONTENT

Name: AUDI AG

Statement of BoD:
Rupert Stadler born 17 March 1963 in Titting, Germany is a German business
executive and chairman of the Vorstand (CEO) of Audi AG since 1 Jan 2010 and served
as its CFO since 12 Jan 2007. From 1997 he served as head of the board for the
Volkswagen Group, and additionally head of group product planning from January
2002. He served as acting chairman of the board of Audi AG and its head of finance
and organization until July 2007. He also serves as the chairman of Automobili
Lamborghini Holding SpA and Volkswagen Group Italia SpA. He serves as vice-
chairman and member of the supervisory board at German football club FC Bayern AG.

Alexander Seitz (55) (Board of Management Member for Finance, IT and Integrity)
began his career at Daimler-Benz AG, where he held several positions in the financial
and commercial area as well as in strategy and procurement. In 2005, he moved to
Volkswagen AG in Wolfsburg as Head of Group Procurement Powertrain. Following
positions for the Group in South America, he was appointed First Vice President and
Commercial Executive Vice President of SAIC Volkswagen in 2013.

Bram Schot (56) (Board of Management Member for Marketing and Sales) born in the
Netherlands, he has been a Member of the Management of Volkswagen Commercial
Vehicles for the area of Marketing and Sales since 2012. In 2011, he moved from his
position as President and CEO of Mercedes-Benz Italia to the Volkswagen Group,
where he was in charge of strategic projects in the area of Group Sales.

Wendelin Göbel (53 (Board of Management Member for Human Resources and
Organization) has been Head of the Board of Management’s Office of the Volkswagen
Group and of the Volkswagen brand since 2007 until 2015. Before that, he held various
positions at AUDI AG and in the Volkswagen Group, including in Procurement Project
Management. From 2003 until 2007, he was Head of the Board of Management’s Office
of AUDI AG as well as a member of the Audi Strategy Committee.

Peter Kössler (58) will be the new Board of Management Member for Production and
Logistics. Born in Ingolstadt, he has until now been Chairman of the Board of
Management of AUDI HUNGARIA Zrt. From 2007 until 2015, he was the director of
Audi’s main plant in Ingolstadt. In that position, he was responsible at the site in
Ingolstadt for all production-relevant areas and site-specific topics such as plant
logistics, environmental protection and plant security.

Dr. Bernd Martens has been Member of the Board of Management for Procurement
at Audi AG since September 1, 2012. Dr. Martens served as Head of Procurement for
New Product Launches at Volkswagen AG since 2005. In 1995, he joined management
consultancy Roland Berger in Stuttgart as Project Manager. He started his career in the
Industrial Science and Labor Organization department at Mercedes-Benz in Stuttgart.
In 1997, he joined Volkswagen do Brasil Ltda. as Head of Product Planning and served
as its Director of Product Management since 1999 and Director of Procurement since
2002.
Organisational Chart:

Location (Head Quarters/Operating Sites):

HQ - Ingolstadt, Germany
Operating Sites:

Ingolstadt, Neckarsulm, Győr, Changchun, Foshan, Brussels,

Aurangabad, Bratislava, Martorell, Kaluga, San José Chiapa, Curitiba
History of Organisation:

AUDI AG is a German company which produces cars under the Audi brand. It is part
of the Volkswagen Group. The name Audi is based on a Latin translation of the surname
of the founder August Horch, itself the German word for “listen!" Audi is headquartered
in Ingolstadt, Germany.
On July 16, 1909 automotive pioneer August Horch founded August Horch
Automobilwerke GmbH in Germany. A short time later he renamed the company after
the Latin translation of his last name – making it Audi Automobilwerke.
In 1932, Audi merged with Horch, DKW and Wanderer, to form Auto Union AG. The
four rings of the Audi badge symbolize the brands Audi, DKW, Horch and Wanderer.
Before World War II, Auto Union AG used the four interlinked rings, only on Auto
Union racing cars in that period. Member companies used their own names and
emblems.
Auto Union GmbH was established in Ingolstadt on September 3rd, 1949 following a
series of changes as WWII came to an end.
Daimler-Benz AG acquired the majority of and finally the remaining shares in Auto
Union GmbH on April 24th, 1958. From this date until the end of 1965, Auto Union
was a fully owned subsidiary of the Stuttgart-based Daimler Group.
Volkswagenwerk AG acquired the majority of shares in Auto Union GmbH in
December 1964, with Audi becoming a fully owned VW subsidiary from the end of
1966.
In March 1969, NSU Motorenwerke AG, which had just been taken over by VW, and
the Ingolstadt-based Auto Union GmbH merged to form Audi NSU Auto Union AG.
In March 1980, a four-wheel-drive sports coupé was introduced at the Geneva Motor
Show. The Audi Quattro was the first high-performance vehicle with four-wheel drive.
This drive concept had previously only been used on trucks and off-road vehicles. The
permanent four-wheel-drive system in the Audi Quattro enjoyed worldwide success in
motor sport and gradually found its way into the entire Audi model range.
In January 1985, Audi NSU Auto Union AG was renamed AUDI AG. At the same time
the company moved its head office from to Ingolstadt. From this time forward
automobiles and the company had the same name.
Description of organisation’s service/products:

AUDI AG, part of the Volkswagen Group, is a leading global car manufacturer
operating in the premium vehicle segment. With three brands – Audi, Lamborghini and
Ducati – the company has 12 production plants worldwide and a range that runs from
small luxury family cars to high-performance supercars.

A1
Fuel consumption A1 / A1 Sportback / S1 / S1 Sportback combined: 7.2–3.6 l/100 km, CO2–Emissionen
combined: 168–94 g/km*1

A3 Limousine
Fuel consumption A3 / A3 Sportback / A3 Saloon / A3 Cabriolet / S3 / S3 Sportback / S3 Saloon / S3
Cabriolet combined: 7.1–3.9 l/100 km, CO₂ emissions combined: 163–102 g/km*1

A4 Limousine
Fuel consumption A4 Saloon / A4 Avant / A4 allroad quattro combined: 6.8–3.7 l/100 km, CO2–
Emissionen combined: 154–95 g/km*1

A5 Coupe
Fuel consumption A5 combined: 6.7–4.0 l/100 km, CO₂ emissions combined: 140–105 g/km*1

A6
Fuel consumptioncombined: 7.5–5.5l/100 km, CO₂ emissions combined: 161–142 g/km
A7 Sportback
Fuel consumption A7 Sportback, combined: 7.2–6.8 l/100 km, CO₂ emissions combined: 163–154
g/km*1

A8
Fuel consumption A8 / A8 L, combined: 8,0-5,6 l/100 km, CO₂ emissions combined: 182-145 g/km*3

Q2
Fuel consumption Q2 combined: 6.4–4.1 l/100  km, CO₂ emissions combined: 146–109 g/km*1

Q3
Fuel consumption Q3 combined: 7.4–4.2 l/100 km, CO₂ emissions combined: 168–109 g/km*1

Q5
Fuel consumption combined: 7,2-4,5 l/100km emissions combined: 164-117 /kmq5

Q7
Fuel consumption Q7 / SQ7 TDI combined: 7.6–5.5  l/100 km, CO₂ emissions combined: 199–144
g/km*1

TT
Fuel consumption TT Coupé / TT Roadster / TTS Coupé / TTS Roadster combined: 7.5–4.6l/100 km,
CO₂ emissions combined: 173–122 g/km*1

RS/R8
Audi R8 Coupé V10 RWS

Fuel consumption and emission figures of the vehicles promoted on this page. Fuel consumption
combined: 12.3–8.1 l/100 km; CO2 emissions combined: 287–198 g/km*1

Description of organization’s operations:

The Audi Group is pursuing clear goals – it strives not only to secure its own long-term
competitiveness but also to meet the needs of its interest groups by conducting its
business in a value-oriented manner and staying fit for the future. In addition to laws,
internal regulations and ethical standards, the Group-wide risk management and
compliance management systems serve as guiding principles for our business
operations. The employees are actively involved in the company’s development at all
times.

SWOT analysis:
https://www.marketing91.com/swot-analysis-of-audi/

Business Strategy:

 Target Asian countries. For example, huge increase in disposable income in China and
India, therefore new market to expand to
 Keep targeting countries that respond well to Audi vehicles. Some examples would be
North America and Europe.
 Keep improving the gas mileage and sustainability of vehicles.
 Increase production of Audi vehicles, demand and popularity are continue to increase.
Audi has also deployed a long term strategy that focuses on the future. Audi's 2020 strategy
was implemented in 2010 and again in 2011. The mission of the 2020 strategy is to "delight customers
world-wide." To accomplish this The Audi brand has defined its understanding of customer delight
in greater detail in the following four areas of action, which it examines, formulates and
substantiates as part of an ongoing process:

 We define innovation
 We create experiences
 We live responsibility
 We shape Audi
The goal for Audi is to be the leading premium brand world-wide.

The image above outlines Audi's 2020 stratagy.

Position & role in community/collaborating partners in community:

The “Audi dual” program is aimed at high school or technical college graduates with a strong
interest in technology and equips them with a dual qualification: It combines studying
engineering at the Ingolstadt University of Applied Science (THI) with various practical
assignments spanning a wide variety of Audi divisions. At the Neckarsulm site, too, Audi
brings together theory and practice in a successful dual study program: The Company works
in partnership with the Baden-Württemberg Cooperative State University (DHBW). In
Belgium, at Audi Brussels, there is a dual course of studies leading to degrees in Automation
Technology, Mechatronics and Electrical Engineering, for example.

Audi collaborates with universities and other bodies to provide specialized, advanced
training. A prime example is the partner project with the Ingolstadt University of Applied
Science (THI), through which powertrain engineers for electric mobility are qualified.

The Company also prepares its employees for the challenges and high importance of
entrepreneurial responsibility at the “Sustainability Academy.” The training program is
open to employees and managers from all divisions, starting with the youngest: Audi’s
apprentices are included among those able to attend competence development workshops
on sustainability, in which they participate during their apprenticeships.

Uniqueness:

Sporty, sophisticated and progressive – the premium vehicles from the Audi

brand

In the past fiscal year, the Audi Group delivered a total of 2,088,187 (2,024,881) cars
to customers. The core brand Audi increased its delivery volume by 3.6 percent to
1,867,738 (1,803,246) vehicles – a new record in company history. The brand with
the Four Rings is renowned in particular for its unmistakable design, innovative
technologies and high quality standards.

Italian, uncompromising and exclusive – the supercars from the Lamborghini

brand and the sporty motorcycles with unique technology from the Ducati

brand.

The high-performance models of traditional Italian brand Lamborghini are the

embodiment of extreme driving dynamics, modern and unmistakable design,
lightweight construction as well as high-quality materials and workmanship.

The motorcycles of the Ducati brand are noted above all for their sports appeal,
modern design, low weight and powerful engines.

3,457 (3,245) supercars of the Lamborghini brand and 55,451 (54,809) sporty
motorcycles of the Ducati brand were delivered in the past fiscal year.
Notable Achievements:

“Best Cars 2018”: Audi A5 Sportback best midsize model

The Audi A5 Sportback (fuel consumption combined in l/100 km: 6.5 - 4.1*; CO2 emissions
combined in g/km: 149 - 106*) won the “Midsize” category in the 42nd “Best Cars” readers
survey conducted by the trade journal auto motor und sport. The five-door coupé topped
its segment with the majority of votes. The prize was accepted by Peter Mertens, Member
of the Board of Management for Technical Development at AUDI AG, at the end of January
in Stuttgart. In addition, the brand with the four rings also took second place three times –
with the Audi A3 in the compact class, the Audi A8 in the luxury class and the Audi Q7 in
the “Large SUV/Off-road Vehicles” category. The Audi A1 took third place in the “Small
Car” category, as did the Audi A6 in the “Upper Midsize” category. Readers selected from
a total of 385 models worldwide in eleven categories. Furthermore the Paul Pietsch Award
was presented during the “Best Cars” awards ceremony. With the traffic jam pilot in the
new Audi A8 the brand took second place in this competition. This prize for innovative
technical developments in the automotive sector has been awarded since 1989 in the
name of Paul Pietsch, co-founder of Motor Presse Stuttgart.
(January 2018)

“Luxury Car of the Year”: Audi A4 honored by Cars.com

The experts at Cars.com, a leading digital automotive portal, selected the Audi A4 as
the “Luxury Car of the Year” at the North American International Auto Show in Detroit. They
praised the midsize model’s versatility, driving dynamics and spacious interior as well as
its superior workmanship and luxurious equipment. The numerous body variants were also
recognized – from the Audi A4 sedan to the sporty Audi S4 sporty Audi S4 (combined fuel
consumption in l/100 km: 7.9 - 7.5*; combined CO2 emissions in g/km: 179 - 170*) to the
Audi A4 allroad (combined fuel consumption in l/100 km: 6.8 - 4.9*; combined
CO2 emissions in g/km: 154 - 127*), which combines off-road qualities with the versatility
of a station wagon. The operation of the Audi A4 impressed with its driver-oriented Audi
virtual cockpit and standard Audi smartphone interface. The latter incorporates Apple Car
Play and Android Auto and therefore offers the familiar smartphone environment.
Assistance systems – including the standard feature Audi pre sense city and the optional
adaptive cruise control with Stop&Go and traffic jam assist – ensure comfort and safety on
board.
(January 2018)

Edmunds CES Tech Driven Awards 2018: Audi honored twice

Audi was honored as the “Most Innovative Automaker” and for having the “Most Innovative
Infotainment System” at the Edmunds CES Tech Driven Awards. The awards were
accepted by Thomas M. Müller, Head of Electrics/Electronics at AUDI AG, and Alfons
Pfaller, Head of Connected Car/Infotainment Development at AUDI AG, at the Consumer
Electronics Show (CES) in Las Vegas. The awards are presented by the CES and by
Edmunds, the leading car sales portal in the USA, as a means of recognizing innovative
concepts and pioneering technologies in the automotive industry. According to the jury of
experts, the traffic jam pilot was the decisive factor in the company’s being named the most
innovative car manufacturer. The new Audi A8 is the world’s first production automobile
developed for conditional automated Level 3 driving. On highways and multi-lane
expressways with a physical barrier between opposing lanes, the system handles driving
in slow-moving traffic up to 60 km/h (37.3 mph). The (remote) parking pilot and remote
garage pilot also made their debut in the new flagship car. They make parking extremely
convenient by autonomously driving the luxury sedan into parallel or perpendicular parking
spaces as well as garages, and by driving the car back out. Audi was also honored for
having the “Most Innovative Infotainment System” thanks to the Audi virtual cockpit and
the MMI system. The jury was impressed by the clear graphics, the integrated user
experience and the intuitive menu navigation. In addition, the Audi smartphone interface
was praised for connecting compatible Android and iOS devices via USB to the on-board
infotainment system.
(January 2018)

Car and Driver “10Best Trucks & SUVs” 2018: Audi Q7 takes the award in its
category
For the second time in a row, the US magazine Car and Driver has named the Audi Q7
the “Best Mid-Size Luxury SUV” in the selection of the “10Best Trucks & SUVs.” The jury
recognized the roomy SUV’s practicality and driving dynamics as well as its innovative
technologies and connectivity. The interior offers premium comfort for seven people: The
panoramic glass roof, for instance, provides a light-flooded interior, while the Bang &
Olufsen 3D Sound System creates a listening experience similar to that of a concert hall.
One highlight is the fully digital Audi virtual cockpit, in which the driver can set various
displays for navigation and infotainment. Numerous assistance systems complement the
extensive offerings – from the standard Audi pre sense basic and Audi pre sense city to
the optional Audi side assist, which warns of vehicles in blind spots. The Audi Q7 is offered
in the United States with a 3.0 TFSI V6 engine and a 2.0-liter four-cylinder gasoline engine.
Both engines are combined with quattro permanent all-wheel drive and an eight-speed
triptronic.
(January 2018)

“Car of the Year 2018” in Korea: Audi R8 tops in performance

The Korea Auto Expert Journalist Association has selected the Audi R8 (combined fuel
consumption in l/100 km: 13.6 - 12.4*; combined CO2 emissions in g/km: 309 - 283*) as Car
of the Year in the “Performance” category. The jury members selected nominees in four
categories from a total of 60 new models that entered the Korean market last year. They
made their final decision after extensive test drives. The Korea Auto Expert Journalist
Association was founded in 2012 and consists of 25 journalists working for print and online
newspapers as well as automotive magazines.
(December 2017)

“Connected Car Award 2017”: Audi A8 honored in the “Connectivity” category

For the fifth time, AUTO BILD and COMPUTER BILD have presented the “Connected Car
Award” for digital trendsetters. The expert jury selected the car with the best connectivity
for the first time this year: In the new category, the Audi A8 clearly outperformed its four
competitors and impressed the jury with its latest generation of modular infotainment
systems, the MIB 2+. The system incorporates the fast mobile radio standard LTE
Advanced into the car as well as a comprehensively optimized navigation system based
on the map service provider HERE. It is operated via two touch displays in the center
console. The Audi virtual cockpit offers full HD resolution of 1,920 x 720 pixels and displays
a wide range of information in a highly detailed display. The highlight is the natural
language voice control, which understands freely formulated statements and responds
accordingly: say “I am cold” and the A8 increases the temperature. “I want a hamburger”
and you’re on your way to the next diner. The prize was presented at the Consumer
Electronics Show in Las Vegas to Thomas M. Müller, Head of Electrics/Electronics at AUDI
AG.
(December 2017)

“Auto Bild Sportscar of the Year 2017”: victory for the Audi RS 3 Sedan
The trade journal Auto Bild Sportscars has awarded the “Sportscars of the Year” award for
the 16th time. The Audi RS 3 Sedan (combined fuel consumption in l/100 km: 8.4 - 8.3*;
combined CO2 emissions in g/km: 191 - 188*) garnered 30.43 percent of the votes in the
“Small and Compact Production Car” category. With its 400 hp 2.5 TFSI engine, up to 280
km/h (174.0 mph) top speed and acceleration from 0 to 100 km/h (62.1 mph) in 4.1
seconds, the compact RS model demonstrates outstanding performance – accompanied
by its characteristic five-cylinder sound. The award ceremony took place during the Race
Night at the 50th Essen Motor Show. A total of 110 cars from tests and driving reports from
the last twelve editions of the magazine were available for selection. The award was
presented in 15 categories.
(December 2017)

Eleven Awards for Audi in Singapore

Numerous new models launched by Audi in Singapore during 2017 were awarded prizes
by the local automotive press:

 The Audi A3 Sedan 1.0 TFSI – Oneshift.com “Best Compact Sedan” (Combined
fuel consumption in l/100 km: 4.7 - 4.4*; combined CO2 emissions in g/km: 109 -
103*)

 Audi RS 3 Sedan – Oneshift. Com “Best Engine Sound & Exhaust Noise” and ST-
Torque Best Buys of 2017 “Compact Executive” (Combined fuel consumption in
l/100 km: 8.4 - 8.3*; combined CO2 emissions in g/km: 191 - 188*)

 Audi A5 Cabriolet – Oneshift. com Best Compact Convertible (Combined fuel

consumption in l/100 km: 8.0 - 4.4*; combined CO2 emissions in g/km: 181 - 114*)

 Audi S5 Sportback – sgCarMart “Best Cars of 2017” (Combined fuel consumption

in l/100 km: 7.7 - 7.5*; combined CO2emissions in g/km: 174 - 170*)
 Audi Q2 – ST-Torque Best Buys of 2017 “SUV/Crossover”, ST-Torque Awards
2017 “Best Compact SUV” and sgCarMart “Premium Crossover of the Year”

 Audi Q5 – ST-Torque Best Buys of 2017 “SUV/Crossover”

 Audi SQ5 – Oneshift. Com “Best High Performance SUV” (Combined fuel
consumption in l/100 km: 8.5 - 8.3*; combined CO2 emissions in g/km: 195 - 189
g/km*)

 Audi R8 Spyder – ST-Torque Best Buys of 2017 “Sportscar” (Combined fuel

consumption in l/100 km: 13.6 - 12.6*; combined CO2 emissions in g/km: 309 - 286*)

CSR: / ACADEMIC COOPERATION AND EDUCATION

Our many university partnerships enhance our innovativeness and prepare the way for
recruiting qualified young employees. We are currently cooperating with over 45
research establishments worldwide. Around 120 doctoral students are currently
pursuing their doctorates in academic projects funded by Audi. In 2016, in partnership
with the “Stifterverband für die deutsche Wissenschaft” (Association for the Promotion
of Science and Humanities in Germany), we also provided support for six endowed
professorships. In addition, to promote the transfer of knowledge, more than 130 Audi
employees help as lecturers at over 40 national and international universities. Through
an individual scholarship and support program, we give children who have had a
difficult start in life a pathway to achieving a high school diploma at the Ingolstadt
specialprofile school. We also built on various programs aimed at providing training
for disadvantaged young people in the year under review. / SOCIAL MATTERS AND
SOCIAL INVOLVEMENT Audi also believes it is important to motivate its employees
to become involved in volunteering and to support their efforts on behalf of community
projects. Under the “Audi Volunteers” initiative, employees propose worthy social
projects and also lend practical assistance to good causes. Around 260 employees
participated in 23 social projects in the past fiscal year during the “Audi Volunteer Days”
in Neckarsulm. At the main site in Ingolstadt, a wide range of departments supported
social institutions such as retirement, nursing and care homes through various
campaigns. In addition, the first social projects have already got under way at our new
site in San José Chiapa (Mexico). From the one million euros provided by the Company
in 2015 for refugee projects, recipients of funding in the year under review included
projects in Ingolstadt and in the Neckarsulm region aimed at integrating young refugee
women and men and preparing them for vocational training. In Brussels, Audi joined
forces with the “Pour la Solidarité” initiative and other organizations such as a health
services project as well as housing and education initiatives for refugees. At our
Hungarian site Győr, we conducted refugee aid projects when there was an acute need
in winter 2015/16. Various fundraising campaigns, such as the Christmas campaign run
every year by the Works Council – with the Company supplementing the amount raised
by employees – or the “Last Cents” campaign where employees can donate the cents
remaining after the decimal point on their monthly payslip, raised donations totaling
EUR 1,258,078 in 2016.
Financial info/budget/revenue/investment:

Revenue : 30,143
Gross profit : 5,316
Profit after tax : 2,096
Net cash flow : 1,879
Total asset : 62,674
Liabilities : 35,135
Current asset : 34,462
Current liability : 21,150
Investments : 333

*Interim report 2017

Organization’s plans:

Urbanization is gathering pace: By 2025, an estimated 58 percent of all people on the planet
will be city-dwellers, rising to about two thirds by 2050. Growing urbanization is pushing
urban infrastructures to their capacity limits. To ensure that individual mobility does not
cause things to grind to a halt, new solutions are needed. And we need to rethink the way
we use scarce resources – living space needs to be used better, noise reduced, congestion
avoided and air quality improved. This is where urbanization and sustainability tightly
enmeshed.

This new way of thinking represents a paradigm shift: In the city of the future, Audi will
increasingly step into the role of a mobility services provider and offer its customers
innovative ways of accessing individual premium mobility. Technologies such as piloted
parking and piloted driving will help make driving safer and more environmentally acceptable,
and will use precious space more effectively than at present.

The mobility solutions of the future will be based on sustainable drive concepts that will only
become extensively available in a few years’ time. Audi is therefore steadily reducing the
consumption of its combustion-engine models. By 2025 around one third of the fleet will be
made up of all-electric vehicles, starting with the launch of a sporty SUV in 2018. A
comprehensive system offering will make it easier for customers to run their cars on green
power. Sustainably produced Audi e-fuels, CO2-neutral production and a supply chain that
meets environmental standards are further building blocks of Audi’s sustainability strategy.

A1
A3
A4
A5
A6
A7
A8
Q2
Q3
Q5
Q7
TT
R8