Audi 2009 Annual Report Download - page 179

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Anticipated financial performance
The Audi Group is also planning to boost its revenue in fiscal years 2010 and 2011 along with
the rise in the delivery volume it is targeting. Thanks to the ongoing productivity and process
improvements already made in the past, coupled with disciplined cost management, the Com-
pany expects to see an improvement in both its operating profit and its operating return on
sales.
Anticipated financial position
The Audi Group intends to continue financing its planned growth entirely from internally gener-
ated cash flow. It has no plans for recourse to external sources of financing.
The current plans for the next two years envisage a clearly positive cash flow from operating
activities. The cash used in investment activities will exceed the 2009 figure as the longer-term
model initiative continues.
The Audi Group will end 2010 with a similarly high level of net liquidity as in the past fiscal year.
Capital investments
The Audi Group’s medium-term investment plans focus mainly on customer-driven additions to
the model and engine range, on the expansion of development and production structures neces-
sitated by these, on improving the productivity and quality of process chains, and on building up
the dealer and service network in order to increase customer delight about the brand with the
four rings. The further optimization of conventional drive concepts and the development of new
mobility concepts such as electric and hybrid models are also very important. All investment
measures share the common objective of improving the Audi Group’s market position sustaina-
bly through a forward-looking model, technology and brand strategy.
The Audi Group’s plans envisage property, plant and equipment spending totaling EUR 5.5 bil-
lion over the period 2010 through 2012. The spotlight will be on the production areas and on
investment measures at suppliers. Cash flow from operating activities will cover investment
spending in full for the entire planning period.
Systematic investment management ensures that all investment projects will be completed on
schedule and according to the Audi Group’s high quality standards.
Anticipated development of the workforce
The size of the workforce in 2010 and 2011 will be broadly on a par with the level in the past
fiscal year.
Opportunities for future development
Additional opportunities for the Audi Group’s future development lie particularly in forward-
looking strategies and measures designed to assure the Company’s sustainable, profitable
growth.
Systematic renewal and expansion of the product portfolio remain an exceptionally important
aspect. The number of Audi models is set to exceed 40 by 2015. A large number of new vehicles
will again be added to the fresh, attractive product range in 2010. Significant models arriving on
the market include the Audi R8 Spyder and the Audi A8 luxury sedan, both of which were enthu-
siastically received by customers, the trade and journalists at the time of their debuts. Other
highlights are the Audi A1 and Audi A7, which mark the Audi brand’s venture into new vehicle
segments. The brand with the four rings is launching its first premium vehicle in the small car
class in the form of the Audi A1. Young people in particular are likely to be captivated by this
sporty, efficient vehicle concept’s high standards of quality, technology and design, which will
ultimately make them loyal to the Audi brand in the long term.