Audi 2011 Annual Report Download - page 146

143
Management Report
134 Audi Group
134 Structure
136 Strategy
140 Shares
141 Disclosures required under
takeover law
143 System of remuneration for
the Supervisory Board and
Board of Management
143 Business and underlying
situation
143 Economic environment
145 Research and development
151 Procurement
151 Production
153 Deliveries and distribution
159 Financial performance
indicators
162 Social and ecological aspects
175 Risks, opportunities
and outlook
187 Disclaimer
shares is likewise decided upon by the Annual General Meeting. The acquisition of treasury
shares is regulated by Section 71 of the German Stock Corporation Act.
Key agreements by the parent company that are conditional on a change of control
following a takeover bid
AUDI AG has not reached any key agreements that are conditional on a change of control following
a takeover bid. Nor has any compensation been agreed with members of the Board of Management
or employees in the event of a takeover bid.
SYSTEM OF REMUNERATION FOR THE SUPERVISORY BOARD AND
BOARD OF MANAGEMENT
Information on the system of remuneration for the Supervisory Board and Board of Management
is provided in the Notes to the Consolidated Financial Statements under “Details relating to the
Supervisory Board and Board of Management” and constitutes part of the Group Management
Report.
BUSINESS AND UNDERLYING SITUATION
ECONOMIC ENVIRONMENT
Global economic situation
The upturn in the global economy continued in 2011. However, there was a marked slowdown
in growth in the second half. In 2011 as a whole, global economic output therefore increased
by only 3.0 (4.3) percent. The mainstays of growth were emerging economies, whose economic
vigor nevertheless lost some of its momentum in the latter part of the year. By contrast, the
pace of economic growth in most industrial countries was modest right from the start of the
period under review, further weakening as the year progressed. In many countries, expansionary
monetary policies and high commodity and food prices caused inflation to rise.
Following a dynamic first quarter, the economy in Western Europe cooled down noticeably. Over
the year as a whole, growth in gross domestic product of 1.5 percent was down on the previous
year’s 1.9 percent. Southern European countries in particular experienced low growth, and in
some cases even a downturn in economic output. The escalation of the sovereign debt crisis that
has been smoldering since 2010 and the unease this caused among companies and consumers
depressed the economic mood. Added to this, the increasingly tough action taken in many coun-
tries to consolidate budgets dampened the economic trend.
With GDP growth of 3.0 (3.7) percent, the German economy proved to be the most robust among
leading industrial nations. Although export activity declined as the year progressed, buoyant
domestic demand on the back of growing corporate investment and a recovery in consumer
spending largely compensated for this. The continuing favorable trend in the labor market was
a positive factor.
In most countries of Central and Eastern Europe, the economy continued to grow vigorously in
the year under review. Gross domestic product in Russia gained 4.3 (4.0) percent.
Economic growth in the United States weakened in 2011, with the rate of 1.7 (3.0) percent well
down on the previous year due to consumer spending being damped by the difficult state of the
labor market and high inflation.
Latin America also witnessed a slowdown in economic expansion over the period in question.
Although the upward trend gained strength in many of the region’s smaller countries, growth in
Brazil fell by more than half to 2.9 (7.5) percent.
As in the preceding years, Asia’s emerging countries again acted as the drivers of global economic
growth in 2011. The Chinese economy’s growth of 9.2 (10.4) percent dipped only slightly from
the previous year’s high level. India also continued to expand strongly with gross domestic
product growing by 7.0 (8.8) percent.