Audi 2015 Annual Report Download - page 166

FINANCIAL PERFORMANCE INDICATORS
FINANCIAL PERFORMANCE
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higher marketing costs resulted in distribution costs amount-
ing to EUR 5,782 (4,895) million. Exchange rate effects also
inflated distribution costs.
Administrative expenses rose to EUR 640 (587) million as a
result of the general growth of the Audi Group.
The other operating result came to EUR −119 (1,260) million.
This decrease is primarily attributable to significantly higher
expenditure for the settlement of foreign currency hedges,
which offset the positive exchange rate effects in revenue.
Operating profit of the Audi Group
EUR million 2015 2014
Operating profit before
special items 5,134 5,150
Special items − 298 −
Operating profit 4,836 5,150
The Audi Group achieved an operating profit of EUR 4,836
(5,150) million for the 2015 fiscal year. Before special items,
we achieved an operating profit of EUR 5,134 (5,150) million.
Special items amounting to EUR 228 million resulted from the
diesel issue concerning the V6 3.0 TDI. This includes financial
expenditure for technical measures, sales measures and legal
risks. The four-cylinder TDI engines affected do not have direct
influence on the financial performance of the Audi Group in
view of existing agreements with Volkswagen AG. The special
items also include expenditure amounting to EUR 70 million in
connection with the precautionary recall of vehicles fitted with
airbags made by the Japanese manufacturer Takata. Further
information on the diesel issue and the airbag recall is provid-
ed on pages 145 ff. under the management’s overall assess-
ment.
In the Automotive segment, we achieved an operating profit of
EUR 4,804 (5,127) million. We were able to benefit here from
an increase in deliveries to customers. Nevertheless, there were
also effects resulting from regional distribution and more
intense competition. The currency environment had a positive
effect overall on the development of operating profit for the
Automotive segment. We addressed the continued high
upfront expenditures for new models and innovative technol-
ogies as well as the ongoing expansion of our worldwide
production network by intensifying our efforts to optimize
processes and costs along the entire value chain.
In the Motorcycles segment, the higher delivery volume as well
as exchange rate effects had a beneficial impact on operating
profit. Considering mix effects and expenses for launching new
models, the operating profit reached EUR 31 (23) million.
After adjustment for the effects of subsequent measurement
in connection with the purchase price allocation, operating
profit came to EUR 54 (48) million.
The financial result of the Audi Group declined to EUR 448 (841)
million in the past fiscal year mainly due to a lower result from
the measurement of derivative financial instruments. The result
from participations including equity-accounted investments,
which contributes towards the financial result, almost matched
the previous year’s figure. It also includes a share of the in-
come of the associated company FAW-Volkswagen Automotive
Company, Ltd., Changchun (China), which was maintained at
the previous year’s level despite a challenging market situation
in China.
The profit before tax of the Audi Group for the 2015 fiscal
year totaled EUR 5,284 (5,991) million. After deduction of
income tax expense, the Company generated a profit of
EUR 4,297 (4,428) million.
Key earnings figures of the Audi Group
in % 2015 2014
Operating return on sales before
special items 8.8 9.6
Operating return on sales 8.3 9.6
Automotive segment 8.3 9.6
Motorcycles segment 4.5 4.0
Adjusted for PPA effects 1) 7.8 8.4
Return on sales before tax 9.0 11.1
1) Effects of purchase price allocation
With investment spending remaining at a high level, the Audi
Group achieved an operating return on sales of 8.3 (9.6)
percent in the 2015 fiscal year. Before special items, the
operating return on sales came to 8.8 (9.6) percent. We
consequently again reached an operating return on sales
within our strategic target corridor of 8 to 10 percent in 2015.
To build on our strong brand position, we prepared and carried
out the gradual market introduction of numerous volume mod-
els in the past fiscal year. These make up around 40 percent of
deliveries worldwide. The return on sales before tax was
9.0 (11.1) percent.
Return on investment (ROI) reached 19.4 (23.2) percent. We
therefore clearly exceeded our minimum required rate of return
of 9 percent of invested assets. The invested assets figure is
calculated from operating assets (property, plant and equip-
ment, intangible assets, investment property, inventories and