DGAP-IRE: AUDI AG: Third Quarter Report 2014


AUDI AG  / Release of an announcement according to Article 37x of the WpHG [the
German Securities Trading Act] 

03.11.2014 10:04

Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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ECONOMIC ENVIRONMENT

The global economy expanded in the first nine months of 2014, with the
degree of dynamism varying from region to region. Despite continuing
structural challenges, economic conditions improved in most industrial
nations. On the other hand, the economic development of a number of
emerging economies was held back by structural deficits and volatile
exchange rates. In Western Europe, the economic recovery continued at a
moderate rate. The majority of countries in the northern half of Western
Europe achieved positive growth rates, while most countries in the south of
the region started to come out of recession. In Germany, the economic
recovery slowed as the year progressed, but remained robust overall thanks
to stable labor market data and positive consumer sentiment. Economic
development in Central Europe made positive progress. In Eastern Europe, by
contrast, the economic situation deteriorated further as a result of the
tensions between Russia and Ukraine. Economic growth in the United States
gathered momentum over the course of the year thanks to the drop in
unemployment and positive consumer sentiment. The Chinese economy again
served as a major growth driver of the global economy, even if its rate of
growth eased slightly.
Worldwide demand for cars continued to rise over the year through to the
end of September, though the pace of growth weakened somewhat as the year
progressed. The individual regions present a mixed picture. While new car
registrations in Western Europe, Central Europe, North America and the
Asia-Pacific region were up, the automotive market in Eastern Europe and
Latin America experienced declining demand. In Germany, the country's
robust overall economic development had a positive impact on the car
market, which enjoyed a 2.9 percent rise in new registrations. Western
European export markets saw more new vehicles registered too, an increase
of 6.0 percent. There was also a healthy development in sales of passenger
cars and light commercial vehicles in the United States, with 5.5 percent
growth. China again acted as a major driver of global demand for cars. New
registrations in that market increased by 12.4 percent.
The established motorcycle markets in the displacement 
segment above 500 cc enjoyed a 5.4 percent rise in demand from January
through September. The general economic recovery brought steady growth in
registrations of new
motorcycles in almost all major markets of Western Europe. On the other
hand, demand for motorcycles in the United States was only slightly up on
the prior-year level. Sales of motorcycles in Japan were noticeably up
despite the higher VAT rate from April 1, 2014.





PRODUCTION 1)

Audi stepped up its production of cars to 1,341,886 (1,203,728) vehicles
from January through September 2014. Of this total, the Chinese joint
venture FAW-Volkswagen Automotive Company, Ltd., Changchun, manufactured
371,358 (311,068) Audi vehicles at the two locations Changchun and Foshan.
In total, 1,340,247
(1,202,061) cars of the brand with the four rings and 1,639 (1,667)
supercars of the Lamborghini brand were built in the first three quarters.
38,874 (38,074) motorcycles of the Ducati brand were produced in the same
period.
In the first nine months of 2014, we manufactured 441,148 (441,641) cars at
the Group headquarters in Ingolstadt. Over the same period we produced
206,063 (207,852) vehicles at the Neckarsulm plant.
AUDI HUNGARIA MOTOR Kft. built a total of 98,151 (23,076) cars of the TT
model line and A3 family in Győr (Hungary). There was especially high
demand for our new A3 Sedan.
91,027 (92,760) vehicles of the A1 car line left the Brussels (Belgium)
plant, operated by AUDI BRUSSELS S.A./N.V.,
between January and September.
In addition, the two Volkswagen Group locations Bratislava (Slovakia) and
Martorell (Spain) built 47,546 (46,561) of the Audi Q7 and 84,954 (79,103)
of the Audi Q3 respectively.
The Chinese joint venture FAW-Volkswagen Automotive 
Company, Ltd. produced a total of 348,642 (311,044) cars of the A4 L, A6 L,
Q3 and Q5 models at its company headquarters
in Changchun, and 22,716 (24) vehicles of the A3 family 
in the southern Chinese city of Foshan.
The Ingolstadt, Neckarsulm, Győr, Bratislava and Martorell locations
manufactured 7,324 (6,522) parts and components for the assembly plant in
Aurangabad (India) in the first nine months of the fiscal year.

1) The figures for the prior-year period have been marginally adjusted.
Audi produced 419,838 (387,695) cars worldwide in the third quarter 2014.
This total included 418,904 (387,185) vehicles of the core brand Audi. 934
(510) supercars of the Lamborghini brand were manufactured. The Ducati
brand produced 8,367 (7,578) motorcycles in the third quarter of the fiscal
year.

Car production by model 1) 2)

<pre>



                                         1-9/2014                  1-9/2013



Audi A1                                    27,999                    30,761


Audi A1 Sportback                          63,028                    61,999


Audi A3                                    19,979                    25,042


Audi A3 Sportback                         141,984                   123,783


Audi A3 Sedan                              78,394                     5,581


Audi A3 Cabriolet                          16,197                     2,743


Audi Q3                                   145,114                   112,820


Audi TT Coupé                               8,731                    11,675


Audi TT Roadster                            2,512                     3,084


Audi A4 Sedan                             165,309                   178,432


Audi A4 Avant                              66,172                    65,113


Audi A4 allroad quattro                    14,711                    13,521


Audi A5 Sportback                          36,695                    39,417


Audi A5 Coupé                              19,334                    23,769


Audi A5 Cabriolet                          13,798                    14,969


Audi Q5                                   191,315                   173,820


Audi A6 Sedan                             180,735                   171,969


Audi A6 Avant                              39,367                    37,147


Audi A6 allroad quattro                     8,415                     6,176


Audi A7 Sportback                          20,589                    22,577


Audi Q7                                    47,546                    46,561


Audi A8                                    30,664                    29,158


Audi R8 Coupé                               1,012                     1,207


Audi R8 Spyder                                647                       737


Audi brand                              1,340,247                 1,202,061


Lamborghini Gallardo                            -                       813


Lamborghini Huracán                           798                        31


Lamborghini Aventador                         841                       823


Lamborghini brand                           1,639                     1,667


Automotive segment                      1,341,886                 1,203,728



</pre>

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

2) The table also includes the vehicles built in China by the joint venture
FAW-Volkswagen Automotive Company, Ltd.

Car engine production

<pre>



                                            1-9/2014               1-9/2013



AUDI HUNGARIA MOTOR Kft.                   1,499,764              1,454,471


Automobili Lamborghini S.p.A.                    836                    805


Car engine production                      1,500,600              1,455,276



</pre>


 
Within the Audi Group, 1,500,600 (1,455,276) engines were produced in the
Automotive segment in the first three quarters of the year under review.

Motorcycle production

<pre>



                                                1-9/2014           1-9/2013



Scrambler                                             16                  -


Naked/Sport Cruiser
(Diavel, Monster, Streetfighter)                  23,013             18,512


Dual/Hyper (Hypermotard, Multistrada)              8,528             14,231


Sport (Superbike)                                  7,317              5,331


Ducati brand                                      38,874             38,074


Motorcycles segment                               38,874             38,074



</pre>



Worldwide, the Ducati brand manufactured 38,874 (38,074) motorcycles in the
first nine months. 34,528 (34,322) bikes were produced at the company
headquarters in Bologna (Italy). Over the same period the Ducati brand
manufactured 3,575 (3,209) motorcycles of the Diavel, Hypermotard, Monster,
Multistrada and Superbike models at the Amphur Pluakdaeng plant (Thailand).
The Manaus plant (Brazil) produced 771 (543) units of the Diavel,
Hypermotard, Monster, Multistrada and Superbike model lines on a contract
manufacturing basis.

DELIVERIES 1)



1) The figures for the prior-year period have been marginally adjusted.
The first nine months of the fiscal year saw the Audi Group step up
deliveries of vehicles to customers by 9.9 percent to 1,443,684 (1,314,114)
cars worldwide. 1,298,643 (1,180,748) vehicles of the core brand Audi were
delivered to customers - an increase of 10.0 percent. On top of that, 1,570
(1,688) supercars of the Lamborghini brand were handed over to customers,
while 143,471 (131,678) cars of other Volkswagen Group brands were
delivered. Worldwide, the Ducati brand presented 37,450 (36,661)
motorcycles to their new owners in the first nine months of the fiscal
year.
In Germany, demand for vehicles of the Audi brand again made good progress
in the first three quarters of 2014. We increased deliveries to customers
in our home market Germany by 3.9 percent to 198,043 (190,607) cars.
Elsewhere in Western Europe too, deliveries progressed 
satisfyingly from January through September 2014. We 
presented 347,265 (329,670) cars of the Audi brand to their new owners, an
increase of 5.3 percent. In the United Kingdom in particular, the Audi
brand remains as popular as ever. The total number of cars delivered there
in the first three quarters came to 126,840 (115,137) - a rise of 10.2
percent.
The region Central and Eastern Europe saw 44,670 (44,527) Audi vehicles
handed over to customers.
With 130,983 (114,411) cars delivered - representing a growth rate of 14.5
percent - the brand with the four rings put in another very positive
performance in the United States.
In the Asia-Pacific region, we increased deliveries of Audi 
vehicles by 16.3 percent to 491,485 (422,590) cars. The main growth driver
was again the Chinese market (including Hong Kong), where we succeeded in
boosting deliveries to customers to 415,704 (358,213) cars.
The Audi brand equally proved very popular in Japan and South Korea. From
January through September of the current fiscal year, we delivered 23,408
(21,428) and 21,334 (14,674) cars to customers in those markets
respectively.

The Audi Group delivered 472,156 (439,777) cars to customers worldwide in
the period from July through September 2014. This total comprised 429,288
(400,281) of the core brand Audi and 42,254 (38,974) of other Volkswagen
Group brands. 614 (522) supercars of the Lamborghini brand were delivered
to customers. The Ducati brand handed over 10,719 (10,679) motorcycles to
their new owners in the third quarter of the fiscal year.




Car deliveries to customers by model 1)

<pre>



                                            1-9/2014               1-9/2013



Audi A1                                       28,144                 30,876


Audi A1 Sportback                             62,747                 65,188


Audi A3                                       21,275                 28,448


Audi A3 Sportback                            129,662                115,676


Audi A3 Sedan                                 61,449                  2,192


Audi A3 Cabriolet                             10,433                  4,067


Audi Q3                                      144,770                105,382


Audi TT Coupé                                  9,917                 11,840


Audi TT Roadster                               2,880                  3,636


Audi A4 Sedan                                167,962                177,875


Audi A4 Avant                                 63,596                 66,934


Audi A4 allroad quattro                       14,377                 13,657


Audi A5 Sportback                             37,708                 37,028


Audi A5 Coupé                                 20,106                 23,266


Audi A5 Cabriolet                             13,886                 15,283


Audi Q5                                      182,271                174,610


Audi A6 Sedan                                180,801                170,433


Audi A6 Avant                                 39,475                 36,558


Audi A6 allroad quattro                        7,928                  6,525


Audi A7 Sportback                             22,194                 21,171


Audi Q7                                       46,792                 41,717


Audi A8                                       28,477                 26,340


Audi R8 Coupé                                  1,089                  1,246


Audi R8 Spyder                                   704                    800


Audi brand                                 1,298,643              1,180,748


Lamborghini Gallardo                             259                    915


Lamborghini Huracán                              413                      -


Lamborghini Aventador                            898                    773


Lamborghini brand                              1,570                  1,688


Other Volkswagen Group brands                143,471                131,678


Automotive segment                         1,443,684              1,314,114



</pre>

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

  - 

Motorcycle deliveries to customers 1)

<pre>



                                                1-9/2014           1-9/2013



Naked/Sport Cruiser
(Diavel, Monster, Streetfighter)                  19,999             18,543


Dual/Hyper (Hypermotard, Multistrada)              9,402             11,424


Sport (Superbike)                                  8,049              6,694


Ducati brand                                      37,450             36,661


Motorcycles segment                               37,450             36,661



</pre>

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

Worldwide, the Ducati brand delivered 37,450 (36,661) 
motorcycles to customers in the first nine months of 2014.
In the United Kingdom, demand for motorcycles of the Ducati brand again
developed very positively. The U.S. market also saw deliveries to customers
rise again in the first three quarters of 2014. Meanwhile, motorcycle
deliveries in the Asia region went
up again. This contrasted with the home market Italy, where deliveries of
motorcycles fell in the first nine months of 2014.

 

ADDITIONS TO THE PRODUCT RANGE

We have continued with the expansion of our diverse A3 family since the
start of the year. New models added include the S3 Sedan, which is
outfitted with a powerful 2.0 TFSI engine producing 221 kW (300 hp). It has
been on sale since February of this year. The new A3 Sportback g-tron was
introduced in
Germany in March. The CNG vehicle can run on natural gas, biomethane and
Audi e-gas. This latter fuel is made using green power, water and CO2 at
our Audi e-gas plant in Werlte, the world's first industrial power-to-gas
plant. This facility converts power from fluctuating sources such as wind
and solar into a fuel that can be stored in the natural gas network. Thanks
to Audi e-gas, the A3 Sportback g-tron can run almost CO2-neutrally because
it only releases as much CO2 into the atmosphere as was previously captured
in the production process for the gas. The new A3 Cabriolet also went on
sale in March 2014. The S3 Cabriolet is an especially sporty version that
we brought onto the German market in June and are now gradually rolling out
in other markets.

The third generation of our design icon, the Audi TT Coupé, celebrated its
debut at the Geneva Motor Show in March. The new model presents a
thoroughly revised, sharper design. The characteristic TT elements from the
first generation have been revived and intensified. We offer our customers
of the third-generation TT the added convenience of our innovative Audi
virtual cockpit. This fully digital instrument cluster, with its versatile,
detailed displays, takes the place of the analog instruments and the MMI
monitor. It offers precision graphics and various individually adjustable
displays. The new Audi TT has already received multiple awards for its
innovative display and operating system. For example, around 42,700 readers
of the trade magazines auto motor und sport and CHIP voted the Audi TT top
in the 'Connected Car' category (auto motor und sport, issue 16/2014, p.
114 ff.). At the 'Automotive Interiors Expo Awards 2014' the Audi virtual
cockpit was proclaimed 'Interior Innovation of the Year'
(www.automotive-interiors-expo.com/english/awards_14_
winners.php). The new Audi TT can also be supplied with the innovative
Matrix LED headlights as an option. At the start of the year we exhibited
the Audi TT quattro sport concept at the Geneva Motor Show and presented a
concept vehicle by the name of Audi TT offroad concept at Auto China 2014
in Beijing. The Audi TT offroad concept blends the sports appeal of a coupe
with the versatility of an SUV, and is powered by a plug-in hybrid drive
with two electric motors. In addition, the showcar features Audi wireless
charging technology, which is designed to enable contactless charging by
induction. We also showed the Audi TT Sportback concept at the Paris Motor
Show. The design of the five-door sports car takes the specific formal
idiom of the TT and develops it further into a new, stretched sculpture.
The showcar is equipped with a 2.0 TFSI engine that has 294 kW (400 hp) of
power at its disposal. The new Audi TT Roadster and TTS Roadster were also
given their first international showings in Paris, ahead of going on sale
from spring 2015. They combine the dynamism of a sports car with the
driving experience of an open two-seater.

We also took the wraps off the improved models of the A6 family in Paris.
In addition to a sharper design as well as new engine versions and
headlights, the new Audi A6 Sedan and A6 Avant are supplied with attractive
infotainment solutions and driver assistance systems. The engine range
comprises three TFSI power units with outputs ranging from 140 kW (190 hp)
to 245 kW (333 hp) and five TDI engines from 110 kW (150 hp) to 235 kW (320
hp). CO2 emissions have been reduced by up to 22 percent. The versatile A6
allroad quattro and the S6 Sedan, S6 Avant and RS 6 Avant sports models
also come with an array of new features that were showcased in Paris. For
example, the 4.0 TFSI engine develops 331 kW (450 hp) and accelerates the
Audi S6 Sedan from 0 to 100 km/h in 4.4 seconds. When operating at part
load, innovative cylinder on demand technology activates just four of the
eight cylinders, to maximize the drivetrain's efficiency.

The new Audi S1 and S1 Sportback models have been 
available since the second quarter of 2014. As well as 
quattro permanent all-wheel drive, they are equipped with a powerful 2.0
TFSI engine developing 170 kW (231 hp). The compact sports car accelerates
from 0 to 100 km/h in 5.8 or 5.9 seconds and has a top speed of 250 km/h.

The completely modified A7 Sportback incorporates many 
new features and has been available since the end of the third quarter. The
large five-door full-size model combines the sports appeal of a coupe with
the comfort of a sedan and the functional utility of an Avant. It is
available in a variety of
attractive engine and transmission versions ranging in
performance from 160 kW (218 hp) to 245 kW (333 hp). The high-performance
power unit, the 4.0 TFSI engine, is available in two models - the S7
Sportback and the RS 7 Sportback - and features efficiency-boosting
cylinder on demand technology. In the S7 Sportback it develops 331 kW (450
hp), and 412 kW (560 hp) in the RS 7 Sportback.

As a premium car manufacturer, we have made it our task to achieve further
reductions in the CO2 emissions of our products. To that end, we are
systematically developing more economical engines and using ever-lighter
materials. The model with the lowest CO2 emissions in each car line is
badged as 'Audi ultra.' This stands for sustainable mobility for everyday
driving. We currently have a total of 30 ultra models in the A3, TT, A4,
A5, A6 and A7 car lines - 20 of them equipped with TDI engines. The Audi
ultra models achieve average fuel consumption of
between 3.2 and 5.9 liters per 100 kilometers and CO2 emissions averaging
from 85 to 137 g/km, making them currently the most economical cars in
their respective classes without in any way compromising driving dynamics
and comfort.

The Lamborghini brand presented the newly developed Huracán LP 610-4 in
Geneva as the follow-up model to the successful Gallardo. The Huracán
boasts a crisp-edged design and especially sporty handling characteristics.
Its powerful V10 engine delivers 449 kW (610 hp). The supercar accelerates
from 0 to 100 km/h in 3.2 seconds and has a top speed of 325 km/h. In
addition, the Lamborghini Asterion LPI 910-4 made its international debut
at the Paris Motor Show. This is the first concept vehicle of the
Lamborghini brand to showcase plug-in hybrid technology. Its
high-performance hybrid drive combines a 5.2-liter V10 engine with three
electric motors and achieves a system output of 669 kW (910 hp). The
high-performance sports model accomplishes the sprint from 0 to 100 km/h in
3.0 seconds and is capable of a top speed of 320 km/h. On average, this
technology demonstrator consumes 4.1 liters of Super Plus gasoline per 100
kilometers, with average CO2 emissions of 98 g/km. When running exclusively
on the battery, it has a range of up to 50 kilometers and can reach a top
speed of 125 km/h.

In the Motorcycles segment, the Ducati brand unveiled the new 1199
Superleggera - a lightweight superbike to be built in a limited run of 500
units - as well as what is already the third generation of the popular
Monster 1200 and 1200 S. These new models offer substantially more power
and comfort, and are especially versatile. Ducati also brought a new
mid-size bike onto the market, the Monster 821. The new Diavel has likewise
been extensively revised and offers a new take on the distinctive, sporty
design of the model family. In addition, it is equipped with the latest
generation of the Testastretta 11  Dual Spark engine. In the carbon-fiber
version - the Diavel Carbon - it also incorporates high-quality lightweight

components that bring a further reduction in weight and 
improve its performance. Another model has been added to the diverse
product portfolio of the Ducati brand in the guise of the reinterpreted
Scrambler. The Scrambler picks up on
traditional design elements and gives them a modern 
emphasis. The new model will go on sale at the start of 2015 in four
different versions - Icon, Classic, Full Throttle and
Urban Enduro.

FINANCIAL PERFORMANCE 



The Audi Group's revenue rose 6.3 percent to EUR 39,300 (36,965) million in
the first nine months of fiscal 2014, despite volatile and unfavorable
exchange rates. We increased revenue for
the Automotive segment to EUR 38,824 (36,489) million. High demand for the
vehicles in our new A3 family and healthy revenue growth in Western Europe,
Asia and North America proved especially beneficial. The Motorcycles
segment achieved revenue of EUR 476 (479) million.

For the period January through September 2014, the Audi Group posted an
operating profit of EUR 3,831 (3,743) million and an operating return on
sales of 9.7 (10.1) percent. The Automotive segment, the business
performance of which is influenced by increased research and development
spending on forward-looking technologies and products as well as by
expansion of the international production network, generated an operating
profit of EUR 3,802 (3,693) million. The operating return on sales for the
segment was thus 9.8 (10.1) percent. Over the same period, the Motorcycles
segment achieved an operating profit of EUR 29 (50) million and an
operating return on sales
of 6.1 (10.5) percent, reflecting mix effects and expenditure for the
expansion of international manufacturing structures.

The pre-tax profit of the Audi Group for the nine-month reporting period
amounted to EUR 4,568 (4,270) million. This represents a return on sales
before tax of 11.6 (11.6) percent. The after-tax figure of consolidated net
profit came to EUR 3,435 (3,132) million.

These factors also shaped our business performance in the third quarter,
even if exchange rate effects had a slightly positive impact on revenue in
that period. The Audi Group thus generated revenue of EUR 12,610 (11,731)
million from July through September. This total comprises EUR 12,503
(11,630) million for the Automotive segment and EUR 107 (101) million for
the Motorcycles segment.

The third-quarter operating profit of the Audi Group came to EUR 1,160
(1,100) million and the operating return on sales to 9.2 (9.4) percent. The
Automotive segment achieved an operating profit of EUR 1,172 (1,106)
million for the third quarter, while the Motorcycles segment posted an
operating profit of EUR -12 (-6) million for a period in which seasonal
factors are especially pronounced.

The Audi Group's operating profit before tax for July through September of
the current fiscal year totaled EUR 1,467 (1,296) million, with the return
on sales before tax amounting to 11.6 (11.0) percent.

After deduction of income tax expense, we achieved a profit of EUR 1,113
(954) million.

The group of consolidated companies has been extended since December 31,
2013 to include Audi Electronics Venture GmbH, Gaimersheim, AUDI Immobilien
GmbH & Co. KG, Ingolstadt, and DUCATI DO BRASIL INDÚSTRIA E COMÉRCIO DE
MOTOCICLETAS LTDA., São Paulo (Brazil).
The initial inclusion of these subsidiaries did not have any material
effects on the presentation of the net worth, financial position and
financial performance.
In May 2014, AUDI AG acquired 26 percent of the shares in Volkswagen
Automatic Transmission (Tianjin) Company Limited, Tianjin (China) for EUR
72 million which is measured at equity in the Audi Group. The share was
increased to 40 percent in September 2014 for around EUR 73 million.




WORKFORCE

In 2014, as part of the Audi growth strategy, we will recruit some 3,000
employees at AUDI AG in Germany alone.

In addition, around 750 young people commenced vocational training at the
Ingolstadt and Neckarsulm locations of AUDI AG in September.




PERSONNEL CHANGES

After seven years in total as the head of Audi Production, 
Dr.-Ing. Frank Dreves retired at the close of March 31, 2014. He was
succeeded by Dr.-Ing. Hubert Waltl, who was the Board of Management member
for Production and Logistics at Volkswagen Passenger Cars from October
2009.

REPORT ON EXPECTED 
DEVELOPMENTS, RISKS AND 
OPPORTUNITIES
Report on expected developments

The Audi Group anticipates slightly stronger expansion for the global
economy in 2014 as a whole than in the previous year. While industrial
nations should again achieve moderate growth rates, Asia's burgeoning
economies are once again likely to deliver the most vigorous growth. On the
downside, economic prospects worldwide are clouded by geopolitical tensions
and conflicts.

In our assessment, global demand for cars will exhibit mild growth over the
year as a whole, though there will be no consistent pattern across the
various different regions. While we anticipate rising new registrations in
the regions of Western Europe, Central Europe, North America and
Asia-Pacific, sales of passenger cars in Eastern Europe and Latin America
are expected to fall.

For 2014 overall, we still expect a slight rise in demand in the
established motorcycle markets in the displacement segment above 500 cc.

All in all, the Audi Group considers that it is well placed to rise to the
challenges that lie ahead and to maintain a course of qualitative growth in
line with our strategic objective, which is explained in detail in the 2013
Annual Report and remains valid. The forecasts for the key performance
indicators for the full year of 2014, which are outlined in the Group
Management Report on pages 194 and 195, remain valid.
In addition, we now expect a moderate increase in revenue in 2014 overall,
mainly thanks to higher volume growth.





Report on risks and opportunities

Increasing the value of our Company is one of the elementary goals of
managing the Audi Group. The Group-wide risk
management system is of central importance in identifying potential risks
and opportunities at an early stage, creating transparency and preparing
farsighted solutions. It establishes the basis for responding as swiftly as
possible to changing conditions and for implementing effective control
measures.
Overall, the Audi Group encounters industry-typical risks and
opportunities, which are described in detail in the 2013 Group Management
Report and remain valid. In addition, the high volatility of currency
markets points to a foreign currency risk that is typical for the industry.
This risk factor is significantly reduced through our strategic currency
hedging. Furthermore, in certain cases the Audi Group seeks to invoice in
liquid currencies such as the U.S. dollar. Despite the Audi Group's high
level of
market diversification, foreign currency risks in certain emerging
economies as well as geopolitical risks - such as those currently present
in Ukraine, Russia and the Middle East - are fundamentally impossible to
avoid altogether.




EVENTS OCCURRING SUBSEQUENT TO THE BALANCE SHEET DATE

There were no reportable events of material significance after September
30, 2014.




DISCLAIMER

The Third Quarter Report contains forward-looking statements relating to
anticipated developments. These statements are based upon current
assessments and are by their very nature subject to risks and
uncertainties. Actual outcomes may differ from those predicted in these
statements.



03.11.2014 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      AUDI AG
              -
              85045 Ingolstadt
              Germany
Internet:     www.audi.de
 
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