Audi 2014 Annual Report Download - page 174

FINANCIAL PERFORMANCE INDICATORS
NET WORTH // FINANCIAL POSITION
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interest from the measurement of pension obligations. As of
the balance sheet date, the equity ratio for the Audi Group
was 37.8 (41.1) percent.
The non-current liabilities of the Audi Group were up
26.0 percent to EUR 12,844 (10,194) million as of the end of
2014. This rise was driven in part by higher provisions for
pensions due to interest rate factors, and especially by vol-
ume-related higher obligations from sales operations.
The 14.2 percent increase in current liabilities to EUR 18,725
(16,398) million is above all attributable to the higher trade
payables that are a direct consequence of the higher business
volume, along with the rise in negative fair values of derivative
financial instruments, in particular as a result of the apprecia-
tion of the U.S. dollar against the euro.
FINANCIAL POSITION
Cash flow from operating activities for the Audi Group reached
EUR 7,421 (6,778) million in the 2014 fiscal year and there-
fore exceeded the previous year’s high level.
Disregarding the change in participations, the cash used in
investing activities for current operations rose to EUR 4,259
(3,553) million over the same period. Of the total investments
in property, plant and equipment and intangible assets, the
Automotive segment accounted for EUR 4,229 (3,544) million
and the Motorcycles segment for EUR 61 (50) million. The focus
of our investment activity was on the expansion of our interna-
tional production network as well as on new products and pio-
neering drive technologies. The changes in participations result-
ed in additional investment by the Audi Group amounting to
EUR 191 (36) million. Mainly as a result of a restructuring of
current cash funds into fixed deposits with a longer investment
horizon, and taking into account the changes in cash deposits
and loans extended, cash flow from investing activities came to
EUR 8,940 (2,674) million. Net cash flow for the 2014 fiscal
year once again reached the high level of EUR 2,970 (3,189)
million despite the higher capital investments. After elimination
of the cash used for changes in participations, net cash flow was
EUR 3,162 (3,225) million. As in previous years, the Audi Group
financed all investments in operating activities entirely from its
own resources and in addition generated a substantial surplus.
Condensed cash flow statement of the Audi Group
EUR million 2014 2013
Cash flow from operating
activities 7,421 6,778
Investing activities attributable to
operating activities –4,450 – 3,589
of which investments in
property, plant and equipment – 2,979 – 2,386
of which development costs – 1,311 – 1,207
of which acquisition and
sale of participations – 191 – 36
Net cash flow 2,970 3,189
Change in investments in securities
and loans extended – 4,490 916
Cash flow from investing activities –8,940 – 2,674
Cash flow from financing activities –1,501 – 1,726
Change in cash and cash
equivalents due to changes
in exchange rates 171 – 120
Change in cash and cash
equivalents – 2,850 2,258
Net liquidity was increased to EUR 16,328 (14,716) million as
of December 31, 2014. This sum includes an amount of
EUR 54 (69) million on deposit at Volkswagen Bank GmbH,
Braunschweig, for the financing of independent dealers and
which is only available to a limited extent. Furthermore, the
Audi Group has adequate committed but currently unused
external credit lines. As of December 31, 2014, other financial
obligations, comprising ordering commitments in particular,
amounted to EUR 4,973 (3,736) million. Further details are
given in Section 41 of the Notes: “Other financial obligations.”
The principles of financial management are explained
under the strategy goal “Superior financial
strength” on page 148.