The Board appoints the members of the committees from among its own members.

The Audit Committee
At the statutory Board meeting, 3 May 2007 Staffan Boman, Chairman and Vito H. Baumgartner were re-elected to the Audit Committee. At the same time, Hans Dieter Pötsch was elected as new member.

In 2006 The Audit Committee consisted of Staffan Bohman (Chairman), Vito H Baumgartner and Lothar Sander. The Audit Committee met a total of five times during 2006. All members participated in all meetings through attendance or by telephone.

The Audit Committee discusses and monitors issues related to administrative processes, risk control and the controller organisation. Its brief also includes discussing and evaluating the company’s application of important accounting issues and principles, the company’s financial reporting, as well as evaluating the auditors and approving the use of external auditors for non-auditingrelated services. When auditors are to be elected, the Audit Committee presents a proposal. The result of the evaluation of auditors and, in case of the election of auditors, the proposal of the Audit Committee are presented to the Board as a whole. As appropriate, the Board in turn informs the Nomination Committee. The Nomination Committee proposes candidates to the AGM for the election of auditors and proposes the compensation to be paid to the auditors.

The Audit Committee shall also receive and discuss complaints concerning accounting, internal controls or auditing in the company.

The company’s auditors normally participate in the meetings of the Audit Committee, provided that the auditors are not being evaluated or discussed.

The Remuneration Committee
At the statutory Board meeting, 3 May 2007 Martin Winterkorn was elected as new member and Chairman of the Renumeration Committee. Peggy Bruzelius was re-elected and Börje Ekholm was elected as new member.

In 2006 the members of the Remuneration Committee were Bernd Pischetsrieder (Chairman), Peggy Bruzelius and Sune Carlsson. The Remuneration Committee met three times during 2006. All members participated in all meetings through attendance or by telephone, except that Peggy Bruzelius was absent from one meeting.

The Remuneration Committee discusses issues concerning compensation principles and incentive programmes, as well as preparing proposals for such issues that must be approved by the AGM.

In compliance with the principles that the AGM has approved for the Board, the Remuneration Committee also prepares decisions concerning conditions of employment for the company’s President and CEO and, as appropriate, its deputy CEO:s.