Audi 2010 Annual Report Download - page 184

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India will remain a major growth market for the Audi brand. The Company intends to further
expand the sales and dealer structure in that country over the next two years, keep improving
the brand’s image and significantly increase the number of vehicles it sells there.
The Audi brand aims to maintain its positive momentum in the U.S. market throughout 2011
and 2012. By launching new, attractive Audi models and promoting its high-performance but
economical diesel engine technology, the Audi brand is targeting new record deliveries in the
United States.
Anticipated financial performance
The increase in vehicle sales being targeted for fiscal 2011 and 2012 is also likely to bring a
substantial rise in revenue for the Audi Group. In addition, the Company is planning to increase
its operating profit in parallel on the basis of its effective and efficient structures and processes
and by realizing steady cost optimizations and adopting a systematic approach to investment
management in all divisions. The operating return on sales is set to remain at the high level of 2010.
Anticipated financial position
The Audi Group again intends to finance its planned growth entirely from internally generated
cash flow in the next two fiscal years. Despite the much higher planned use of cash in investing
activities for the continuing long-term model initiative and the development of new technologies,
it is set to earn a comfortable profit. The cash flow from operating activities of the Audi Group is
likely to rise further in 2011 and 2012.
Capital investments
The Audi Group’s investment plans envisage customer-oriented additions to the model and engine
range, along with the expansion of development and production structures necessitated by these.
These plans also focus on improving the productivity and quality of process chains, and on build-
ing up the dealer and service network in order to increase customer delight. Another priority
area involves efficiency measures for the overall vehicle, the further optimization of conventional
drive concepts, and the development of alternative fuels and new mobility concepts such as
electric and hybrid models. All investment measures share the common objective of improving
the Audi Group’s market position sustainably through a forward-looking model, technology and
brand strategy.
Overall, the Audi Group is planning property, plant and equipment spending in excess of EUR 11
billion over the period 2011 through 2015. In embarking on the biggest investment program in
the Company’s history, the Audi Group is preparing the ground for sustainable, profitable growth
and underlining its ambition to become the world’s leading manufacturer of premium vehicles.
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 Audi Group’s workforce is expected to increase slightly in 2011 and 2012 in line
with the Company’s scheduled growth.
Opportunities for future development
Under the umbrella strategy of developing Audi into the world’s leading premium brand, the
Audi Group’s management is pursuing a large number of measures designed to safeguard the
Company’s sustainable, profitable growth. These also give rise to potential and opportunities
that are continually incorporated into the plans so that they can be realized rapidly.
Systematically following through with the product initiative is among the top priorities in this
respect. After nine successful model launches in 2010, a large number of new models due to
appear in 2011 and 2012 will generate extra sales potential. The rejuvenation of the high-volume