Audi 2013 Annual Report Download - page 205

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES
MANAGEMENT REPORT
202
A
// PERSONNEL OPPORTUNITIES
The Audi Group is already perceived as an attractive employer
worldwide. This has been confirmed by a large number of
national and international awards. By further improving this
perception of us as a top employer worldwide, we will continue
to be able to attract and retain top talents for our Company at
the relevant locations in the future. Various international high-
potential programs already under way could give this devel-
opment added momentum.
// INFORMATION AND IT RISKS
Our Company’s increasing worldwide presence calls for the ready
availability of secure data and information flows in all relevant
corporate networks. The generally sharp increase in cyber-
attacks could fundamentally also lead to unauthorized access
to and manipulation of data at our Company, in conjunction
with disruptions to our business operations. We have therefore
further extended and optimized our IT security organization.
Group-wide security standards, risk analyses, security audits
and improvement projects, which have the goal of assuring the
continuity and security of internal processes, are the principal
components.
// INFORMATION AND IT OPPORTUNITIES
A key success factor behind ongoing, sustainable productivity
advances are effective, efficient processes and information sys-
tems that meet the requirements of the Audi Group. These
offer additional opportunities.
// FINANCIAL RISKS
Financial risks in the form of creditworthiness and liquidity
risks are of relevance for the Audi Group, as well as interest
rate, exchange rate and commodity price risks. Considerable
exchange rate risks concern principally the U.S. dollar, the
Chinese renminbi, the Japanese yen, the British pound and the
Russian ruble.
Further information on the hedging policy and risk
management in the area of financial risks is provided
in the Notes under Section 37 “Management of
financial risks.”
By way of medium-term precautions, the Audi Group has con-
cluded an appropriate level of hedging transactions for pur-
chases of commodities and for foreign currency to hold these
risks in check effectively. Despite recent signs of a recovery,
worldwide financial and commodity markets continue to exhibit
above-average levels of uncertainty with regard to the further
direction of the global economy.
// FINANCIAL OPPORTUNITIES
Moderate growth in the global economy could help to ease
demand for the relevant commodities for our Company. This
could open up opportunities for the Audi Group on the procure-
ment market. In addition, the globalization of worldwide finan-
cial markets could widen the spectrum of hedging instruments
at our disposal. The anticipated growth trend in the Chinese
economy and the gradual liberalization of Chinese financial
markets could result in a further strengthening of the Chinese
renminbi. Likewise, the economic recovery of the United States
and United Kingdom could occur faster and sooner than in the
eurozone, prompting a rise in the value of those local currencies.
Rising interest rates could also lead to higher income from the
Audi Group’s investment transactions and thus have a positive
impact on the financial result and on overall liquidity. The Audi
Group constantly monitors and actively manages all these areas
of potential.
/ MOTORCYCLES SEGMENT
The Ducati Group was integrated into our Group-wide risk man-
agement organization in 2013. Various risks for the Ducati
Group were eliminated or mitigated as a result of becoming part
of the Audi Group. However, this means that new, segment-
specific risks and opportunities have arisen for the Audi Group.
// RISKS FOR MOTORCYCLES SEGMENT
The Ducati Group is among the most successful motorcycle
manufacturers in the world and adds to the product range of
the Audi Group. The Ducati Group, too, is confronted with
markets of growing complexity and volatility as well as a shift
in customer requirements. To address these challenges appro-
priately, the Ducati Group has further optimized the product
development process with a particular eye to safety and quality.
It has, for example, introduced additional processes in the form
of control cycles and the qualification of employees.