Audi 2011 Annual Report Download - page 148

145
Management Report
134 Audi Group
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
German carmakers profited from the worldwide recovery in demand for passenger cars in the year
under review, increasing their vehicle exports by 6.6 percent to the new record total of 4.5 (4.2)
million units. As in previous years, Western European export markets were the main sales region.
Despite the overall decline in the market, a total of 2.3 (2.2) million vehicles were exported, or
0.8 percent more than in the previous year. The largest national market was the UK, accounting
for an export volume of 0.6 (0.6) million cars. China has now moved up to second place with
growth of 22.5 percent. 0.6 (0.5) million German-built vehicles were shipped there in 2011. The
third-largest export market was the United States with 0.5 (0.5) million export vehicles.
High export demand in the period under review meant that domestic production by German
carmakers grew correspondingly sharply and reached 5.9 (5.6) million units, a new all-time record.
The volume of German-brand cars built abroad is becoming increasingly significant; in 2011
these reached a total volume of 7.0 (6.1) million units, up 15.7 percent on the previous year.
Management’s overall assessment
Despite slower progress in the second half of the year, the global economy as a whole continued
to grow in the past fiscal year.
The Audi Group operated very successfully within this environment and, with 1,302,659
(1,092,411) Audi models, achieved the highest deliveries total in the history of the Company.
The substantial rise of 19.2 percent can be ascribed in part to higher general demand, but to a
greater extent to the Audi brand’s attractive product range, to which a number of new models
were added in 2011.
Moreover, the long-term corporate policy yet again paid dividends. It focuses on steadily opti-
mizing processes and cost structures along the entire value chain, and therefore on lastingly
improving productivity.
The Audi Group was thus able to post an operating profit for 2011 of EUR 5,348 (3,340) million
and an operating return on sales of 12.1 (9.4) percent. These key financial indicators mean that
the Company was again one of the most profitable businesses in the automotive industry
worldwide.
RESEARCH AND DEVELOPMENT
The Research and Development area is of key importance for the success of a manufacturer of
premium automobiles. With innovations such as quattro drive, the Audi Space Frame and the
TDI engine, the Audi brand has been regularly influencing technological standards in automotive
manufacturing for many decades. The Company again brought a large number of technological
solutions to production maturity in 2011.
In 2011, an average total of 7,574 (6,987) people were employed in the Research and Develop-
ment area of the Audi Group. This total comprised 6,586 (6,365) at AUDI AG, 147 (134) at AUDI
HUNGARIA MOTOR Kft. Győr (Hungary), 216 (187) at Automobili Lamborghini S.p.A., Sant’Agata
Bolognese (Italy), and 566 (274) at Italdesign Giugiaro S.p.A., Turin (Italy).
RESEARCH AND DEVELOPMENT EXPENDITURE RECOGNIZED AS AN EXPENSE
EUR million 2011 2010
Research expense and non-capitalized development costs 2,243 1,901
Impairment losses (reversals) on capitalized development costs 397 567
Total 2,641 2,469