Audi 2011 Annual Report Download - page 188

185
Management Report
134 Audi Group
143 Business and underlying
situation
159 Financial performance
indicators
162 Social and ecological aspects
175 Risks, opportunities
and outlook
175 Risk report
183 Report on post-balance sheet
date events
183 Report on expected
developments
187 Disclaimer
In its home market of Germany, the Audi brand expects the number of vehicles delivered in 2012
and 2013 to show an improvement on the total for the past fiscal year. Despite the expected fall
in overall market demand, the Company plans a moderate increase in deliveries in Western
European export markets. In Central and Eastern Europe, the Audi brand is planning substantial
growth, driven mainly by an increase in deliveries in the Russian market. Deliveries in the United
States in 2012 and 2013 will probably rise further. The dynamic pattern of growth is also likely
to be maintained in the Chinese market. This development will be supported especially by the
expansion of the dealer network from around 230 dealerships to over 400 by the year 2013. The
Company’s presence in China will be further boosted by the construction of a second production
plant there.
The Audi brand intends to continue broadening its product portfolio in order to achieve even
greater brand appeal and customer delight. The Company already offers a diverse, attractive
product range extending from the Audi A1, through the SUV family – Audi Q3, Q5 and Q7 – to
the R8 Spyder.
For 2012, AUDI AG has planned a large number of new products that will provide additional
sales impetus. For example, the successor generation of the popular A3 car line will arrive on
markets. In addition, the Audi brand will extend the A1 car line by introducing the A1 Sportback
and A1 quattro models. The updated models of the A5 and A4 car lines have moreover been on
sale to customers since the end of 2011 and start of 2012 respectively. The A6 allroad quattro
and the S6, S6 Avant, S7 Sportback and S8 will add to the appeal of the higher segments during
the course of the year.
By launching modern hybrid and electric drive versions, the Audi brand would like to fulfill the
wishes of customers who want innovative drive and mobility concepts that explore a new dimen-
sion beyond efficient combustion engines. Following the launch of the Q5 hybrid quattro in 2011,
hybrid versions of two further car lines will become available in the course of 2012 – the A6 hybrid
and the A8 hybrid. The small-series electric R8 e-tron will then appear towards the end of the year.
The Company also expects demand in 2012 to be lifted by the full availability of the new A6
generation and the new Q3 premium SUV, both of which have been gradually rolled out on
markets since last year.
Anticipated financial performance
The planned increases in deliveries in 2012 and 2013 mean that the Audi Group’s revenue will also
rise. Despite higher expenses for new models, technologies and expanded production structures,
the Audi Group expects operating profit for 2012 and 2013 to remain at the high level of 2011
provided the economic framework does not change significantly. In particular, the young, attrac-
tive product range and the effects of further process and cost optimization measures as well as
systematic investment management will benefit the profit performance.
Anticipated financial position
The Audi Group again intends to finance its growth in 2012 and 2013 entirely from internally
generated cash flow. Although cash used in investing activities will continue to rise because of
the long-term nature of the product initiative and the development of innovative technological
concepts, the net cash flow is to remain positive.