Audi 2010 Annual Report Download - page 132

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AAudi: the number one udi: the number one
premium brand. This is premium brand. This is
the clearly formulated the clearly formulated
vision for the Audi Group.vision for the Audi Group.
It calls for Audi to assume worldwide It calls for Audi to assume worldwide
leadership in the premium segment leadership in the premium segment
in the long term. To achieve this am-in the long term. To achieve this am-
bitious goal, the Company is focusing bitious goal, the Company is focusing
above all on delighting its customers. above all on delighting its customers.
With expertise, passion and agility, With expertise, passion and agility,
Audi wants to win customers by Audi wants to win customers by
off ering the best brand experience off ering the best brand experience
along with innovative and emotional along with innovative and emotional
products. The plan calls for 1.5 million products. The plan calls for 1.5 million
Audi brand cars to be delivered to Audi brand cars to be delivered to
customers in 2015. The Company is customers in 2015. The Company is
therefore intensifying its involvement therefore intensifying its involvement
in international automotive markets in international automotive markets
and is further developing its worldwide and is further developing its worldwide
network of dealers and service centers network of dealers and service centers
accordingly. Aside from the United accordingly. Aside from the United
States, particular focus is on the States, particular focus is on the
growth markets of China and India. growth markets of China and India.
At the same time, the attractive At the same time, the attractive
product portfolio will be expanded to product portfolio will be expanded to
42 models by 2015.42 models by 2015.
As part of the long-term model As part of the long-term model
initiative, the Audi brand also again initiative, the Audi brand also again
expanded its range in 2010 with expanded its range in 2010 with
several new arrivals. In addition to the several new arrivals. In addition to the
new generation of the Audi A8 and the new generation of the Audi A8 and the
new Audi R8 Spyder*, the new A1 and new Audi R8 Spyder*, the new A1 and
A7 Sportback* models in particular A7 Sportback* models in particular
have delighted customers with their have delighted customers with their
emotional design, sporty handling, emotional design, sporty handling,
effi ciency and a fun driving experience.effi ciency and a fun driving experience.
The newly introduced models The newly introduced models
already had a positive impact on the already had a positive impact on the
growth of total deliveries in 2010. growth of total deliveries in 2010.
The Audi Group increased deliveries of The Audi Group increased deliveries of
Audi brand cars to the new record Audi brand cars to the new record
amount of 1,092,411 units. With a amount of 1,092,411 units. With a
15.0 percent increase, the brand 15.0 percent increase, the brand
with the four rings grew at an above-with the four rings grew at an above-
average pace in comparison with average pace in comparison with
worldwide demand for cars. At the worldwide demand for cars. At the
same time, the Audi Group’s revenue same time, the Audi Group’s revenue
rose by 18.8 percent to a new record rose by 18.8 percent to a new record
amount of more than EUR 35.4 billion. amount of more than EUR 35.4 billion.
As part of its qualitative growth As part of its qualitative growth
strategy, the Audi Group is striving strategy, the Audi Group is striving
for sustainable, superior fi nancial for sustainable, superior fi nancial
strength. In addition to stable revenue strength. In addition to stable revenue
growth, the Company is primarily growth, the Company is primarily
focusing on eff ective and effi cient focusing on eff ective and effi cient
processes and structures, continuous processes and structures, continuous
optimization of costs and systematic optimization of costs and systematic
investment management. The investment management. The
Audi Group more than doubled its Audi Group more than doubled its
operating profi t in the past fi scal operating profi t in the past fi scal
year and achieved a new record profi t year and achieved a new record profi t
of more than EUR 3.3 billion from of more than EUR 3.3 billion from
operating activities. With this, the operating activities. With this, the
operating return on sales also reached operating return on sales also reached
a new record level of 9.4 percent, after a new record level of 9.4 percent, after
reaching 5.4 percent in the previous reaching 5.4 percent in the previous
year, and once again secured the Audi year, and once again secured the Audi
Group’s position among the world’s Group’s position among the world’s
most profi table car manufacturers.most profi table car manufacturers.
At the same time the Company once At the same time the Company once
again displayed its impressive ability again displayed its impressive ability
to self-fi nance. Although investments to self-fi nance. Although investments
increased from the previous year, the increased from the previous year, the
Audi Group was able to fi nance these Audi Group was able to fi nance these
investments completely from its cash investments completely from its cash
fl ow from operating activities. In the fl ow from operating activities. In the
process, the Company actually achieved process, the Company actually achieved
a signifi cant surplus and increased net a signifi cant surplus and increased net
cash fl ow to more than EUR 3.5 billion. cash fl ow to more than EUR 3.5 billion.
This also resulted in an increase in net This also resulted in an increase in net
liquidity to a new record amount of liquidity to a new record amount of
EUR 13.4 billion.EUR 13.4 billion.
The 2010 fi scal year was another The 2010 fi scal year was another
important milestone for the Audi important milestone for the Audi
Group on its way to becoming the Group on its way to becoming the
world’s number one premium brand – world’s number one premium brand –
and the Company will continue to and the Company will continue to
follow this path to growth in 2011. follow this path to growth in 2011.
In addition to the successful market In addition to the successful market
launches of the past year, the new launches of the past year, the new
generation of the Audi A6, the new generation of the Audi A6, the new
Audi Q3 and other derivatives of the Audi Q3 and other derivatives of the
A1 model line in particular will A1 model line in particular will
stimulate additional demand. The stimulate additional demand. The
Audi brand will also off er a full hybrid Audi brand will also off er a full hybrid
this year with the new Audi Q5 this year with the new Audi Q5
hybrid quattro*. The A6 hybrid and the hybrid quattro*. The A6 hybrid and the
A8 hybrid will follow at a later time, A8 hybrid will follow at a later time,
along with a small production series along with a small production series
of the Audi e-tron supercar, which is of the Audi e-tron supercar, which is
powered solely by electricity. The powered solely by electricity. The
Audi Group’s plans calling for the Audi Group’s plans calling for the
biggest investment program in biggest investment program in
company history are primarily aimed company history are primarily aimed
at developing new, attractive prod-at developing new, attractive prod-
ucts and advanced technologies ucts and advanced technologies
such as hybridization and electric such as hybridization and electric
mobility. Over the next fi ve years more mobility. Over the next fi ve years more
than EUR 11 billion will be invested than EUR 11 billion will be invested
in achieving sustainable, profi table in achieving sustainable, profi table
growth over the long term, and growth over the long term, and
thereby becoming the world’s leading thereby becoming the world’s leading
car manufacturer in the premium car manufacturer in the premium
segment. segment.
Deliveries of Audi vehicles
(thousands)
Revenue
(EUR billion)
Operating profi t
(EUR million)
A year of records
* Fuel consumption and emission fi gures at the end of the Annual Report
O
2008 2009 2010
1,003
950
1,100
1,000
900
800
700
2008 2009 2010
34.2
29.8
35.4
36
35
34
33
32
31
30
29
28
2008 2009 2010
2,772
1,604
3,500
3,000
2,500
2,000
1,500
1,000
1,092
3,340