Audi Canada

Speech to a 125th Annual General Meeting of AUDI AG 2014

Ladies and Gentlemen,

I also would like to acquire we politely to a 125th Annual General Meeting of AUDI AG. As Professor Stadler has already explained, a Audi Group can demeanour behind on a successful year 2013. We not usually significantly surpassed a vital volume aim dual years progressing than planned. We also achieved good in financial terms, and continued along a trail of essential growth. we would now like to give we an overview of a enlargement of a pivotal financial metrics.

I will start with a pivotal sum of a income statement. In a past financial year, we augmenting a income of a Audi Group to 49.9 billion euros – generally due to a clever direct for a new models of a A3* reward compress series. Compared with a high spin of a prior year, this represents enlargement of 2.3 percent, notwithstanding disastrous banking effects.

Since Jul 2012, a income of a Audi Group also includes a income of a Ducati Group.

In 2013, a motorcycles shred achieved sum income of about 570 million euros.

The Audi Group’s cost of sales amounted to about 40.7 billion euros final year. The boost of 4.2 percent is due not usually to a enlargement of a prolongation volume, though in sold also to a enlargement of a ubiquitous prolongation structures.

When we review a enlargement of cost of sales with a boost in income practiced for banking effects, we have a scarcely proportional picture. Gross distinction of 9.2 billion euros in 2013 was next a high prior-year figure; a sum lapse on sales was 18.4 percent.

The Audi Group’s placement costs of 4.6 billion euros were usually somewhat above a prior-year level, notwithstanding a energetic growth. Administrative losses augmenting to approximately 570 million euros in 2013.

In serve to a ubiquitous enlargement of a Audi Group, a boost of 7.5 percent is generally a outcome of converging effects. Other handling outcome augmenting to about 1 billion euros in 2013. The poignant boost compared with a prior year essentially reflects a softened gains on a allotment of banking hedging transactions. In total, we achieved an handling distinction of 5.0 billion euros.

As good as a aloft power of competition, a enlargement of gain in a 2013 financial year mostly reflects a efforts to continue a concentration of a Audi Group on tellurian enlargement and a mandate of a future! In this context, a poignant allege output that we have done for destiny topics was a biggest cause with a disastrous impact on gain in a year 2013.

The enlargement of a ubiquitous prolongation capacities was one concentration of a investments. We have stretched a Hungarian site in Győr into an vehicle plant with a full routine chain. And with a new plant in Mexico, we are strengthening a successful enlargement trail in a North American market. In a initial step, a Audi Q5* inheritor era will get off a public lines there as of 2016.

In serve to aloft debasement due to a incomparable investment volume, a diminution in gain was caused by augmenting output for investigate and development: For example, we worked intensively on a long-term structure of a indication portfolio – generally opposite a backdrop of stricter CO2 regulations worldwide.

In serve to a continual optimization of explosion engines, a efforts focused above all on a augmenting foundation of a product range. At a same time, a gain opening was influenced by a aforementioned power of foe in some pivotal markets; since we clearly felt a ensuing vigour on prices, generally in China and Western Europe. Two other factors with disastrous impacts on gain were exchange-rate effects and brew effects – generally due to descending direct in a markets of Western Europe influenced by a sovereign-debt crisis.

Now let’s spin to a drivers of earnings: The poignant enlargement of a section sales was a biggest certain outcome on a handling profit: We benefited on a one palm from a energetic enlargement of a Audi brand’s section sales in a reward compress segment. Dynamic enlargement rates were achieved above all by a new models of a A3 family*, such as a A3 Sportback* and a A3 Sedan*. On a other hand, we had poignant sales procedure from a SUV models: a Q3*, Q5* and Q7*.

Furthermore, we were means to serve optimize a product costs once again final year. The ensuing certain impact on gain of approximately 400 million euros is generally a thoughtfulness of softened buying and a unchanging concentration of a processes on fit procedures and methods.

In addition, we would like to surprise we about a gain enlargement of a “Motorcycles” segment: In a context of purchase-price allocation, in suitability with a supplies of IFRS, acquired resources are to be revaluated and evenly depreciated. With care of this one-off effect, a handling distinction of a Ducati code amounted to 33 million euros. Adjusted for this effect, handling distinction amounted to 59 million euros.

The Audi Group’s financial income in 2013 of 293 million euros was significantly reduce than a high spin of a prior year. This essentially reflects changes in a satisfactory values of derivative financial instruments. Furthermore, due to a ongoing really low spin of marketplace seductiveness rates, we achieved usually a low lapse on a investment of glass funds. On a other hand, income from investments grown positively, driven in sold by a Chinese corner venture. So a Audi Group’s distinction before taxes amounted to a sum of 5.3 billion euros.

Ladies and gentlemen,

the clever profitability of a Audi Group is also reflected by a categorical lapse figures. So in 2013, notwithstanding a severe marketplace environment, we achieved an handling lapse on sales of 10.1 percent, and were so once again above a vital aim mezzanine of 8 to 10 percent. This means that also in a past financial year, a Audi Group was one of a many essential manufacturers in a reward segment. The enlargement of a lapse on sales before taxes was no reduction successful during 10.7 percent.

Another essential metric is a lapse on investment, that is, a rate of lapse on a normal volume of collateral invested. This amounted to 26.4 percent in 2013, and is so also justification of a peculiarity of a enlargement path.

Ladies and gentlemen,

let me now spin to a enlargement of a pivotal change piece items. The Audi Group’s change piece sum of 45.2 billion euros during a finish of a 2013 financial year was 11.8 percent aloft than a year earlier. The boost in non-current resources to approximately 20 billion euros generally reflects augmenting property, plant and apparatus as a effect of a augmenting investment activity. Current resources augmenting in 2013 by 12.8 percent to 25.2 billion euros.

That poignant enlargement is essentially due to a boost in money and money equivalents as good as a boost in receivables caused by a certain business development.

On a other side of a change sheet, liabilities augmenting by about 1.3 billion euros to 26.6 billion euros, generally since of aloft trade payables. At a change piece date, a Audi Group’s equity augmenting by approximately 3.5 billion euros to 18.6 billion euros. This generally reflects a collateral grant from Volkswagen AG of 1.9 billion euros.

Another cause strengthening a equity collateral bottom was a allocation to shielded gain of a 0.8 billion euros of net distinction that remained after a distinction transfer. The Audi Group’s equity ratio so softened – notwithstanding a augmenting change piece sum – by 3.7 commission points to 41.1 percent.

I now spin to comparison apparatus of a money upsurge statement. In a past financial year, we augmenting a money upsurge from handling activities to 6.8 billion euros. As a outcome of a aforementioned endless allege expenditure, a money outflow for handling investments augmenting by about 10 percent to 3.6 billion euros.

I would like to indicate out that we financed all investments in a enlargement of a ubiquitous sites as good as in new models and technologies entirely from a possess resources once again final year. In 2013, we generated a net money influx of only over 3.2 billion euros, that is 10.9 percent aloft than a high spin of a prior year, notwithstanding high investments. Net liquidity so augmenting to 14.7 billion euros during a finish of a year.

Ladies and gentlemen,

the 2013 financial year featured severe mercantile conditions in many markets.

In this environment, a Audi Group shielded a clever marketplace positioning in a rival tellurian reward shred and continued along a trail of qualitative growth.

And we intend to continue a qualitative enlargement this year as well. With sales in a initial entertain of 413,000 automobiles of a Audi brand, we surpassed a high spin of deliveries of a prior-year duration by 11.7 percent. We augmenting a income accordingly to scarcely 13 billion euros in a initial quarter. We confirmed a handling distinction during a high spin of 1.3 billion euros, notwithstanding a delay of dear allege output for a enlargement of a ubiquitous prolongation structures and to enhance a indication and record portfolio. The bottom line is that we achieved an handling lapse on sales of 10.1 percent.

We now come to a opinion for full-year 2014.

Ladies and gentlemen,

although we expect disappearing enlargement impetus for a tellurian vehicle market, we devise to boost deliveries significantly once again in 2014 interjection to a appealing indication range. And we have likewise desirous enlargement targets also for a motorcycle segment.

As a result, we intend to serve boost a income of a Audi Group – for a initial time in a company’s story – to some-more than 50 billion euros.

We will continue a systematic enlargement of a prolongation network. In serve to a new plants in Hungary, Mexico and Brazil, we are also stability a high levels of investment during a German sites in Ingolstadt and Neckarsulm. At a same time, we are augmenting a dash of investment in new models and technologies. We devise a bandwidth of 5 to 5.5 percent for a rate of investment in property, plant and machinery.

Despite this complete allege output in a destiny of a company, we devise to grasp an handling lapse on sales within a vital aim mezzanine of 8 to 10 percent. With this strong spin of profitability, we will also lay a foundations for serve essential enlargement in a entrance years.

At a finish of final year, we authorized a biggest singular investment module in a company’s history. We did that deliberately – notwithstanding a good challenges. By 2018, we devise to deposit a sum of approximately 22 billion euros, with a transparent concentration on innovations and technologies. With a second indication initiative, we are environment a march on a approach to apropos a globally heading code in a shred of reward automobiles.

In final my speech, concede me to impute quickly to a Annual Report 2013. You all perceived a duplicate of it during a information table today, together with a papers on a Annual General Meeting. In serve to a printed Annual Report in a languages German, English and Chinese, we also offer we once again this year a multimedia knowledge for several inclination with engaging audio and video features.

Fuel expenditure sum of a models named above

Audi A3:
Combined fuel expenditure in l/100 km: 7.1 – 3.2
Combined CO2 emissions in g/km: 165 – 85

Audi A3 Sportback:
Combined fuel expenditure in l/100 km: 7 – 3.3
Combined CO2 emissions in g/km: 162 – 88

Audi A3 Sedan:
Combined fuel expenditure in l/100 km: 7 – 3.3
Combined CO2 emissions in g/km: 162 – 88

Audi Q3
:Combined fuel expenditure in l/100 km: 8.8 – 5.2
Combined CO2 emissions in g/km: 206 – 137

Audi Q5:
Combined fuel expenditure in l/100 km: 8.5 – 4.9
Combined CO2 emissions in g/km: 199 – 129

Audi Q7:
Combined fuel expenditure in l/100 km: 10.7 – 7.2
Combined CO2 emissions in g/km: 249 – 189