Audi 2012 Annual Report Download - page 196

199
Management Report
140 Audi Group
151 Business and underlying
situation
173 Financial performance
indicators
176 Social and ecological aspects
190 Risks, opportunities
and outlook
190 Risk report
197 Report on post-balance sheet
date events
197 Report on expected
developments
201 Disclaimer
Deliveries in North America are also likely to rise further in 2013 and 2014. There, the Audi Group
aims to capitalize above all on the gradual expansion of the exclusive dealer network in the United
States and on growing demand among U.S. customers for the Audi brand’s high-performance,
efficient diesel models.
The Company seeks to maintain the growth course of previous years in the Asia-Pacific sales
region. In China, the highest-volume market for Audi vehicles, the Audi brand is increasing local
production capacities, the product range and the number of dealerships in order to consolidate
its market lead in the premium segment. In Japan as well, the Audi brand expects to see a further
rise in deliveries over the next two years.
The brand with the four rings already offers an extensive and attractive product portfolio, from
the A1 premium compact car, through the SUV family – Q3, Q5 and Q7 – to the R8 supercar. We
expect demand in 2013 to be stimulated not least by the availability of the Audi A3 for its first
full year since its gradual roll-out in the markets from late summer 2012.
The Audi brand’s product range is also set to grow. The A3 car line will acquire a versatile five-
door A3 Sportback, the sporty S3 and S3 Sportback models plus an additional derivative model
in the course of this fiscal year. The A3 Sportback g-tron, appearing as of fall 2013, will be the
Audi brand’s first gas-powered vehicle. The improved R8 has been on sale to customers since the
start of the year. Plans for the current fiscal year also include significantly expanding the range
of ultra-sporty models, such as the SQ5, the RS 5 Cabriolet, the RS 6 Avant, the RS 7 Sportback
and the RS Q3.
The Company expects the Ducati brand to enjoy increased deliveries of motorcycles in the 2013
and 2014 fiscal years thanks to plans to step up its international sales activities and introduce
the new Hyperstrada model line onto the market.
Anticipated financial performance
We expect a slight rise in revenue for the Audi Group and the Automotive segment in the 2013
and 2014 fiscal years. The profit performance will benefit not only from planned sales growth,
but also from the productivity and process improvements previously introduced, as well as from
efficient corporate structures. Despite higher expenditure for new products and technologies –
in particular to satisfy tougher CO2 regulations worldwide – and high advance payments for the
expansion of the international production network, the Company thus expects the operating
return on sales to be at the upper end of the strategic target corridor of eight to ten percent.
For the Motorcycles segment, the Audi Group envisages the forecasting period yielding higher
revenue compared with 2012 as a whole. Here too, an operating return on sales of eight to ten
percent is the target.
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 increase in cash used in investing activities as
a result of the long-term product initiative, the development of new technologies and the expan-
sion of the worldwide production network, the Company’s objective is to generate a positive net
cash flow.