Audi 2012 Annual Report Download - page 193

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Demographic change also represents a long-term challenge for the Audi Group. We have already
responded promptly, for example by adapting working conditions to suit an employee’s age, de-
veloping models for the individual’s working life, and offering special part-time arrangements.
Other components include preventive health care programs and raising awareness among em-
ployees of their individual responsibility for their own financial future.
Information and IT risks
A key success factor behind ongoing, sustainable productivity advances is effective, efficient
processes and information systems that meet the requirements of the Audi Group. Our Compa-
ny’s increasing worldwide presence calls for the ready availability of data and information flows
between Group and production locations.
The growing prevalence of electronic networks harbors increased information and IT risks, which
can affect the financial position, financial performance and net worth of the Audi Group. Such risks
include for instance the failure of important IT systems within the value chain, unauthorized
access to the system, and the creation of heterogeneous system landscapes. To avert the risks of
unauthorized access to data, ongoing measures are taken to safeguard stable, highly available
IT infrastructures. Group-wide security standards that are designed to uphold the continuity of
internal processes also make a major contribution towards Company security.
Financial risks
The Audi Group is also exposed to financial risks through its worldwide business activities. The
most relevant are creditworthiness and liquidity risks, as well as interest rate, foreign exchange
and commodity price risks. Foreign exchange risks concern principally the U.S. dollar, the Chinese
renminbi, Japanese yen, the British pound and the Russian ruble. By way of medium-term pre-
cautions, the Audi Group has concluded an appropriate level of hedging transactions for purchas-
es of commodities and for foreign currency to hold these risks in check effectively. The financial
markets continue to experience high volatility mainly due to the sovereign debt crisis in several
different countries and the general macroeconomic situation. Further information on the hedging
policy and risk management in the area of financial risks is provided in the Notes in “Additional
disclosures” under Note 37 “Management of financial risks.”
Motorcycles segment
The Ducati Group has belonged to the Audi Group since July 2012. The motorcycle manufacturer’s
existing risk management system is currently being examined. Based on our findings, it will be
integrated into the Group-wide risk management system in the course of the current year.
Overall assessment of the risk position
Considerable uncertainty continues to be the dominating feature of the global economy. The
sovereign debt crisis in Europe is likely to continue prompting the countries affected to take
growth-impeding consolidation measures and could also erode demand for cars. In the United
States, there is the renewed threat of the authorized federal debt ceiling being reached. The
associated risks for the American automobile market could also affect the medium-term for-
tunes of the premium segment, which is currently showing a positive development.
There is uncertainty about the impact in particular of potential spill-over effects of global eco-
nomic developments and of state economic stimulus programs on the Chinese market’s growth
rate, which is therefore difficult to forecast.
The Audi Group is responding to these developments by adopting a global horizon for its business
activities and diversifying its premium product range.
On the basis of these circumstances and facts, no risks currently exist that could endanger the
Company’s survival for the foreseeable future.