Audi 2013 Annual Report Download - page 206

REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
REPORT ON RISKS AND OPPORTUNITIES // REPORT ON POST-BALANCE SHEET DATE EVENTS
MANAGEMENT REPORT
203
A
Ducati customers are very discerning when it comes to product
quality and design. The Company therefore always has to take
the premium expectations of its customers into account. In
order to avoid image loss and reduce warranty costs, Ducati is
continually optimizing its processes and managing these with
the aid of quality and customer satisfaction indicators.
Demographic change in the traditional sales markets is prompt-
ing a shift in customer requirements. When defining its prod-
ucts, Ducati systematically considers these changes and also
accesses fresh growth potential by entering new markets.
Demographic change is also leading to more intense competi-
tion for the best and most qualified specialists. Ducati addresses
this risk through its strong appeal as an employer, based on the
brand’s powerful charisma. For example, Ducati is renowned not
only for its unique design, but also for its outstanding expertise
in lightweight technology and engine development. As part of
its strategic human resources planning, Ducati recruits its em-
ployees worldwide and uses personnel development measures
to retain them in the long term.
The volatility of financial and procurement markets presents
exchange rate and commodity price risks, which Ducati coun-
ters through the Group-wide hedging strategies available to it
within the Audi Group.
// OPPORTUNITIES FOR MOTORCYCLES SEGMENT
The increasing focus on technical innovations and individuality
could open up new market opportunities for the motorcycle
industry. Ducati could profit more from these in future thanks to
its unique market position in the design and technology areas.
The integration of the Ducati brand into the Audi Group could
create further synergies, for example in operational procedures
or purchasing processes, and in connection with expanding
business partner networks. In addition, drawing on Group-wide
expertise could provide fresh impetus for further optimizations
to products and processes. In addition, the Audi Group offers
expertise in how to make further progress with internationali-
zation.
/ OVERALL ASSESSMENT OF THE RISKS AND
OPPORTUNITIES SITUATION OF THE AUDI GROUP
Even in difficult economic situations, the Audi Group has per-
formed better than the market as a whole in the past thanks to
its strong brand image, attractive product range, worldwide
supplier and production network, and international customer
mix. Our steady profit figures and advantageous cost structures,
in conjunction with our significant financial strength, give us
adequate financial leeway for future investments in products,
technologies and services, even in a challenging economic
environment. Our risk management system helps to provide
risk transparency at an early stage. We manage the Audi Group
based on goals and opportunities, with a clear focus on increas-
ing the value of our Company. In view of the planned expan-
sion of our product portfolio, the most significant risks for the
Audi Group are presented by product development and creation
activities, increasingly tough regulatory conditions in our
worldwide sales markets, and the need to meet sustainability
requirements.
The anticipated development in sales markets and our innovative
strength offer ample opportunities for achieving our strategic
volume and profit goals. Our steady market expansion, above
all in the Asia-Pacific region, and the further improvement in
our market position in the United States are key indications of
our direction. The Audi brand plays an important role within
the Volkswagen Group and consistently uses the synergies
available to it to strengthen its own competitiveness. The
Group-wide focus on sustainability targets ensures that we
meet not only the statutory requirements, but also the expec-
tations of our customers.
On the basis of these circumstances and facts, no risks currently
exist that could endanger the Company’s survival for the foresee-
able future.
REPORT ON POST-BALANCE
SHEET DATE EVENTS
There were no reportable events of material significance after
December 31, 2013.