Audi 2006 Annual Report Download - page 6

Audi maintained the positive business trend of recent years
in the 2006 financial year and posted new records for produc-
tion and unit sales for the eleventh time in succession. Mean-
while, the key financial performance indicators improved
yet again – a sign of qualitative growth. Last year, as well as
increasing its revenue the Audi Group boosted its key earnings
data to the highest level ever.
Against a backdrop of a dynamic global economy, demand
for cars worldwide likewise reached a new record in 2006.
At the same time, however, the pressure of competition in the
car sector became even more intense.
Last year the Audi brand extended its attractive product
range with an array of new models such as the Audi TT Coupé,
A4 Cabriolet, A6 allroad quattro and sporty top-end models in
the S and RS car lines. The market launch of the Audi Q7
enjoyed a particularly high profile in 2006. This premium
model has met with an enthusiastic reception worldwide, and
has attracted large numbers of new customers to the Audi
brand. In substantially improving its profitability in a year in
which it launched numerous new models, the Audi Group
demonstrated the effectiveness of its investment manage-
ment approach.
Audi owes these achievements in particular to the dedi-
cation of its management, workforce and the employees’
elected representatives. The Supervisory Board takes this
opportunity to thank and congratulate all concerned.
The Board of Management gave regular, up-to-date, com-
prehensive accounts of its actions to the Supervisory Board.
The Supervisory Board discussed in depth with the Board of
Management all decisions of fundamental significance for
the company. The Supervisory Board considered at length the
economic situation of the company, business progress, the
business policy and the risk situation, together with the risk
management approach, at four joint meetings and by means
of written and oral reports from the Board of Management,
and advised the Board of Management on these matters. The
Presiding Committee met before each Supervisory Board
meeting.
Following in-depth discussions, the financial, personnel
and investment plans were approved on December 6, 2006.
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprü-
fungsgesellschaft was commissioned with the task of audit-
ing the Annual and Consolidated Financial Statements and
the management reports of AUDI AG and the Audi Group
and subsequently signed these off without qualification.
The examination conducted by the Audit Committee and
Supervisory Board likewise revealed no cause for objections,
with the result that the Supervisory Board was able to sign off
the Annual and Consolidated Financial Statements at its
meeting on February 23, 2007. The annual accounts are thus
established.
The Audit Committee met on three occasions in 2006 and
was informed in depth about the Consolidated Financial State-
ments for 2005, the risk management measures within the
company and the current situation at the end of 2006. It exam-
ined the market opportunities and risks on individual markets
outside Europe, as well as the impact of the forthcoming
VAT rate increase on sales in the home market of Germany.
Principal topics for discussion by the Supervisory Board dur-
ing the past year were the steering of investment spending,
the development of the Audi brand in European markets and
the opportunities and risks in the USA and Japan. The Super-
visory Board of AUDI AG approved the further expansion
of the model range over the next few years and released the
necessary financial resources for this.
At its meeting on December 6, 2006, the Supervisory Board
endorsed the remuneration model for the members of the
Board of Management of AUDI AG and agreed on the content
of the annual declaration of compliance pursuant to Section
161 of German Stock Corporation Law.
There were the following changes to the composition of
the Supervisory Board and Board of Management in the past
financial year:
Dr. Bernd Pischetsrieder surrendered his offices as Chair-
man and Member of the Supervisory Board from the close of
December 31, 2006. The Supervisory Board is deeply grateful
and indebted to Dr. Pischetsrieder for his foresight and
tireless dedication in leading the non-executive directors.
Prof. Dr. Martin Winterkorn, Chairman of the Board of Manage-
ment of Volkswagen AG, was appointed his successor by the
Local Court of Ingolstadt, upon the application of the Board of
Management of AUDI AG, with effect from January 1, 2007. He
was elected Chairman of the Supervisory Board by its members.
Dr. h.c. Andreas Schleef left the Board of Management of
AUDI AG from the close of September 30, 2006. The Supervisory
Board would like to thank Dr. Schleef for his many years of
successful work on the Board of Management of AUDI AG.
Erich Schmitt assumed responsibility for the “SEAT, S.A.,
Chairman of the Board of Management” Division on the
Board of Management of AUDI AG from October 1, 2006.
“The Audi Group
again improved its
profitability quite
substantially last year.”
REPORT OF THE SUPERVISORY BOARD
4AUDI 2006 ANNUAL REPORT