Final D raft Parts Horizon 2020 Mandatory backbone

Final D raft Parts. Horizon 2020: Mandatory backbone for K-TSK presentation Hannover, 13 th May 2014 19/03/2018 Volkswagen Group Polska

Assumptions for turnover calculation Topic - Details - Baseline • some of the activities planned within PH 2020, have been already considered within PR 62, therefore the baseline turnover is underneath the PR 62 turnover Used assortment • Genuine Parts, incl. Warranty • Tyres Miscellaneous • 2013 –VGP systems integration – implementation of the Kopfsparte allocation methodology • 2014 – change in the allocation methodology – from Kopfsparte to Singlesparte • 2014 – Seat - New Brand in portfolio Baseline Volkswagen PKW • Due to the change of the common parts allocation methodology (Kopfsparte to Singlesparte) VW PKW had a budget adjustment • The baseline of VW PKW is based on the new budget which is about 20. Mio PLN higher than PR 62 Car Park • Source POLK • Multi brand approach coordinated by K-VO-SR Price step 19/03/2018 • All turnovers calculated in nominal figures (Inflation rate included) Volkswagen Group Polska 2

Car Park development 2013 -2018 Premise: Age of vehicles ≤ 15 years Source: - POLK new estimation method (VWN, Audi, Seat, Skoda) - POLK historical estimation method (VW Pkw) 19/03/2018 Volkswagen Group Polska 3

Baseline: Baseline turnover (in PLN) Baseline turnover per car (in PLN) Premise: • turnover only domestic market • only genuine parts & tyres (incl. Warranty; excl. Oil and accessories) 19/03/2018 Volkswagen Group Polska 4

Turnover (in PLN) PR 62 – Baseline (in PLN) Time 19/03/2018 Volkswagen Group Polska 5

Actions Parts. Horizon 2020: Pricing Action Brand VW - Details • Implementation of Market Intelligent Pricing • Price Image Campaign development • Reports, analysis & planning, aftersales market study (STS, MIS Aftersales) development on brand level VWN Audi Pricing • c. MIP implementation • Price image campaign with Economy parts packages (seg. 2&3) • Brand specific price strategy: Price optimization according to brand value, customer value expectation and OEM/OES/IAM price studies; specific focus on premium models & brands • Price studies on elasticity and profit optimization (e. g. discount groups / rush & stock discounts) • Ongoing analysis of brand grey market competition SEAT SKODA Group 19/03/2018 • Price image campaign with Economy parts packages (seg. 2&3) • Price study: STS • Reporting and analysis of aftersales market and parts pricing studies • Appointment of Aftersales Business Analyst to provide insight analysis, reporting to the brand factory • Development of market competitive Fleet Package Pricing - ensure consistency and transparency of pricing to fleet customers (fleet) • Market price study as a solid base for price definition • Implementation of new pricing concept (Market oriented price tool - Simon&Kucher) (excl. AOT) • Create attractively priced offers for new vehicle customers to support customer loyalty based on certain assortment (own / fleet) • Special pricing to retain used vehicle / Segment II and III customers (own) • Exploitation of price potential of „monopoly parts“ Volkswagen Group Polska 6

Actions Parts. Horizon 2020: Own Workshop Action Brand VW Own Workshop VWN Audi 19/03/2018 - Details • Loyalty increase: • Extended Warranty • S&M Packages development • Segment II&III increase: • Service Offensive • Economy Parts development & implementation of PPS • Development of Direct Express concept • Market exploitation & turnover per throughputs increase • Active Selling implementation (2014) & CRM approach for marketing campaigns + predictive marketing (automated reminder program for service, MOT, etc. ) • Increase sales potential per throughput with direct reception development (new tools & system solutions needed) • Development and implementation of Service app for smart phones • Unfall Spezialist – Concept implementation • Development of Direct Express workshops • Service Packages to retain new and used vehicle customers • Loyalty program for service customers • Development of FF team responsible for VWN After Sales and support for dealers business of one add. Person (total 3 FF’es for 71 Service Partners) • Roll out of predictive marketing - automated reminder program for service, MOT, etc. • Development and implementation of Service app for smart phones • Service packaging • Customer loyalty increase via increasing sales of Extended Warranty and Audi Service and Maintenance Packages (either linked to new vehicles sales at the dealer and linked to workshop visit) • Keeping AOT purchase exclusivity concept • Professionalization of Audi Workshop appearance, processes and performance via mobile solutions for Direct Reception process (i. Pads concept) • Establishing Body & Paint centers in strategic market areas focus especially on Audi aluminium repairs • PPS - Service Segment II/III: “One price for the job”, Season campaigns, Service and Accessories offers in Audi Magazine; development and promotion of sell-out activities: e. g. exhaust test, periodic review , seasonal check (winter / summer), etc. , • CRM – system: Implementation in Service, Audi Insight, Audi App. , use of predictive data to optimize market penetration, activities by sending service reminders or re-book at service visit • Development and implementation of Service app for smart phones Volkswagen Group Polska 7

Actions Parts. Horizon 2020: Own Workshop Action Brand SEAT Own Workshop SKODA - Details • • • Extended Warranty implementation on country standard level Service Packages implementation SEAT Insurance implementation SEAT Connect application Roll out of predictive marketing - automated reminder program for service, MOT, etc. Development and implementation of Service app for smart phones • • • Price image campaigns with economy price packages, 4+ discounts program supported by importer Implementation of Direct Reception process Supporting IT tool for service process (Digital Check-in – Health Check) CRM approach for central and local marketing campaigns (Automated Sales chances) Roll out of predictive marketing - automated reminder program for service, MOT, etc. Skoda Care products launch with VW Bank (extended warranty, Insurance and re-launch of S&M Packages) CA Package launch Marketing of Service app for smartphones Ensure implementation and further development of new product range „Economy parts“ (depending on launch of new product groups from the factory) Development and implementation of Accident Management concept, incl. Unfall Spezialist concept to increase customer loyalty Development and further implementation of product for repair financing together with VW Bank Product groups analysis and intensive follow up by field forces Full implementation and further development and optimization of E-mobility concept/business Coordination of implementation of digital solutions for service process Implementation of full package pricing • Group 19/03/2018 • • • Volkswagen Group Polska 8

Actions Parts. Horizon 2020: Fleet Action Brand - Details - VWN • Fleet loyalty program – Auto. Team Fleet development: • Fleet Business/Service Center implementation, • Measures development: unified labour rate, oil strategy, discount rules connected with volume targets • Incorporate of small fleet customers to the program • Mobility offer & services (i. e. door to door) development – main competitive advantage on fleet service market • Increase number of fleet customer in program and service revenue by more active acquisition & maintaining relations • Auto Team Fleet Platform and further development of the platform Audi • Service Maintenance Program implementation for Audi fleet customers (including IT solution) • Develop and promote actively customized Fleet Service products • Definition and implementation of loyalty measures for insurance and lease companies VW Fleet SEAT SKODA Group 19/03/2018 • Service Fleet Program development • Service Program for fleet - further development • Simplify legal solution, new discount rules, oil price strategy based on VW Group branded oil, semi automated authorization process, • New IT tool Fleet Connect with CRM support for fleet and fully automated authorization process • Development of market competitive Fleet Package Pricing - ensure consistency and transparency of pricing to fleet customers • Create and implement a framework that can be marketed to fleet customers by the Brands Volkswagen Group Polska 9

Actions Parts. Horizon 2020: NORA Action Brand - Details - VW • • Offer for parts transport between dealers and Nora customers Special offer for delivery car purchase for Nora customers • VWN NORA business model implementation in SEAT service network • • Development and implementation of regular reporting system for retail network Re-definition of NORA concept to support further market exploitation (e. g. NORA Centers) Optimization of NORA bonus conditions Implementation of consistent auditing process of NORA business Audi NORA SEAT SKODA Group 19/03/2018 Volkswagen Group Polska 10

Actions Parts. Horizon 2020: Tyres Action Brand - Details - VW VWN Audi Tyres SEAT • • Fixed tyres seasonal campaign Extended tyres offer • Full implementation of group programs SKODA Group 19/03/2018 • • Development and implementation of regular reporting system for retail network Development of marketing activities Market and potential analysis of tyre business Joining the central tyre business project Tyre storage Tyre insurance Tyre Etka Volkswagen Group Polska 11

Additional turnover of Parts. Horizon 2020 actions (in PLN) 19/03/2018 Volkswagen Group Polska (1/2) 12

Additional turnover of Parts. Horizon 2020 actions (in PLN) 19/03/2018 Volkswagen Group Polska (2/2) 13

Turnover incl. Parts. Horizon 2020: Total turnover (in PLN) Additional turnover vs. Baseline (in PLN) Additional turnover vs. PR 62/Budget (in PLN) 19/03/2018 Volkswagen Group Polska 14

Turnover (in PLN) PR 62 vs. Baseline vs. Parts. Horizon 2020 Time 19/03/2018 Volkswagen Group Polska 15

Turnover incl. Parts. Horizon 2020: Total turnover (in PLN) Additional turnover vs. Baseline (in PLN) 19/03/2018 Volkswagen Group Polska 16

Turnover per car Baseline vs. Parts Horizon 2020 PLN Group Ø PLN VW Pkw PLN VWN PLN AUDI PLN SEAT PLN SKODA PH 2020 19/03/2018 Volkswagen Group Polska Baseline 17

Requirements NSC: Additional Headcounts (organizational correlation) (1/2) x field force level x specialist level 19/03/2018 Volkswagen Group Polska 18

Requirements NSC: Additional Headcounts (organizational correlation) (2/2) x field force level x specialist level 19/03/2018 Volkswagen Group Polska 19

Financial result: NSC level (in PLN) 19/03/2018 Volkswagen Group Polska (1/2) 20

Financial result: NSC level (in PLN) 19/03/2018 Volkswagen Group Polska (2/2) 21