Audi Group: Record First-Half Operating Profit of Over EUR 1.3 Billion

• EUR 17.6 billion revenue for first half up 21 percent on previous year
• Operating profit over EUR 1.3 billion in first half-year
• Board Member for Finance Strotbek: “We are once again aiming for an outstanding result for 2010, and expect our operating return on sales to reach the same level as the first half-year.”
• Board Member for Sales Schwarzenbauer: “We want to significantly exceed the record year of 2008, with deliveries of over 1,080,000 vehicles in 2010.”

INGOLSTADT, Germany--(BUSINESS WIRE)--The Audi Group increased its revenue by 21 percent in the first six months of the current fiscal year to EUR 17.6 (2009: 14.5) billion. Meanwhile the 61.6 percent rise in operating profit easily outstripped revenue growth, setting a new Company record for the first half-year of more than EUR 1.3 billion (EUR 823 million).

“Compared with the record year of 2008, which is our real benchmark, we have achieved 7.5 percent growth”

The Audi Group clearly benefited from the worldwide recovery in demand and its attractive model range. In the first six months of the fiscal year, deliveries by the Audi brand rose to a new record high of 554,939 (465,804) cars. This represents an increase of 19.1 percent on the previous year. “Compared with the record year of 2008, which is our real benchmark, we have achieved 7.5 percent growth,” emphasized Peter Schwarzenbauer, Member of the Board for Marketing and Sales at AUDI AG.

In the first half of the year the Audi Group recorded revenue of EUR 17.6 (14.5) billion, an increase of almost 21 percent. This is a higher rate than the growth in deliveries. The Company improved its operating profit by 61.6 percent to more than EUR 1.3 billion (EUR 823 million), and therefore by a much steeper rate than its revenue. “The record profit reflects just how successful our strategy of sustained, profitable growth is,” said Axel Strotbek, Member of the Board for Finance and Organization at AUDI AG. “Another example is our operating return for the past few years. Despite the crisis, it has averaged a good seven percent,” continued Strotbek.

In the year in progress the Company is also investing substantial amounts in new products and future technologies, mainly in the areas of electric mobility and lightweight construction. Twelve new models in total will be appearing on the market in 2010, including the A1 entry-level model and the A7 Sportback.

All investment spending was again met entirely from the Company’s own resources, with even a surplus remaining. The net cash flow rose by a substantial 36.2 percent to EUR 1.9 (1.4) billion. “That impressively confirms the enduring financial strength of the Audi Group,” said Strotbek. The sound financial basis of the Company is also evidenced by the 10.6 percent rise in net liquidity to EUR 11.8 billion in the first half.

The Audi Group is also confident about its prospects for the year as a whole: “We want to increase deliveries to customers to over 1,080,000 vehicles this year,” said Schwarzenbauer. This is equivalent to growth of 13.7 percent compared with the previous year, when Audi delivered 949,729 cars. “We are once again aiming for an outstanding result for 2010, with our operating return on sales reaching the same level as the first half-year,” added Strotbek. The latter ratio was 7.6 (5.7) percent for the first six months of the fiscal year.

* Prior-year figures are in parentheses

The Interim Financial Report is available at:

www.audi.de/halbjahresfinanzbericht2010

http://www.audi.com/interim-financial-report2010

The Audi Group sold around 950,000 cars of the Audi brand in 2009. The Company posted revenue of €29.8 billion and an operating profit of €1.6 billion. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Győr (Hungary), Changchun (China) and Brussels (Belgium). Aurangabad in India saw the start of CKD production of the Audi A6 at the end of 2007, of the Audi A4 in early October 2008 and of the Audi Q5 in July 2010. Production of the new Audi A1 has been running at the Brussels plant since May 2010. The Company is active in more than 100 markets worldwide. AUDI AG’s wholly owned subsidiaries include AUDI HUNGARIA MOTOR Kft., Automobili Lamborghini Holding S.p.A. in Sant’Agata Bolognese (Italy) and quattro GmbH in Neckarsulm. Audi currently employs around 58,000 people worldwide, including 45,500 in Germany. Between 2010 and 2012 the Audi Group is planning to invest more than €5.5 billion, mainly in new products, in order to sustain the Company’s technological lead embodied in its “Vorsprung durch Technik” slogan. By 2015, Audi plans to increase the number of models in its portfolio to 42.

Audi has long been fulfilling its social responsibility on many levels – with the aim of making the future worth living for generations to come. The basis for Audi’s lasting success is therefore formed by environmental protection, the conservation of resources, international competitiveness and a forward-looking human resources policy. One example of AUDI AG’s commitment to environmental issues is the newly established Audi Environmental Foundation.

Video statement available at:
https://www.audi-mediaservices.com/publish/ms/content/en/public/webvideo/2010/07/30/Operating_Profit_2nd_Quarter.html

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