Speech to a 124th Annual General Meeting of AUDI AG

Posted on 16. May, 2013 by in Audi Canada

Ladies and Gentlemen,

In a past financial year, we continued to follow a vital march of tolerable and essential growth. As Mr. Stadler already mentioned, we once again posted record levels of territory sales, income and handling profit, notwithstanding severe mercantile conditions. We therefore not usually achieved a targets for financial year 2012, in fact we significantly surpassed them.

Let me now explain to we a enlargement of a Audi Group’s pivotal financial metrics. Before we demeanour during a categorical apparatus of a income statement, we would like to indicate out a change in a financial reporting: With a merger of Ducati, we news on a year 2012 for a initial time with a segments of “Automobiles” and “Motorcycles.”

In 2012, we increasing a income by 10.6 percent, or 4.7 billion euros, to a new record figure of 48.8 billion euros. This estimable boost is generally a outcome of a certain enlargement of territory sales. Among other effects, we profited from clever direct for Audi automobiles in a large-sedan and oppulance segments due to full accessibility of a new A6 models worldwide and a A7 Sportback. An additional cause was a good recognition of a oppulance indication series, a A8, generally in a United States and China.

In a reward compress segment, we gained additional procedure above all from a new models, a Audi Q3 for example. And with a new Audi A3, we will serve urge a clever rival position in this shred in a future.

After a merger of a Ducati Group in Jul 2012, that association generated income of some-more than 200 million euros in a seasonally weaker half of a year; in full-year 2012, a Ducati code posted income of approximately 600 million euros.

Due to a enlargement of a business volume, a Audi Group’s cost of sales increasing by 8.5 percent to approximately 39 billion euros. The fact that cost of sales once again increasing during a reduce rate than income demonstrates a success of a efforts to grasp continual capability advances and routine improvements. After deducting prolongation costs from revenue, a Audi Group therefore increasing a sum distinction in 2012 by 20.1 percent to approximately 9.7 billion euros. The sum domain increasing accordingly to about 20 percent.

The Audi Group’s placement costs amounted to 4.6 billion euros final year, that is significantly aloft than a spin of 2011. In serve to a incomparable sales volume, a boost is also due to aloft selling costs given of a launch of countless new models and complete foe in some pivotal markets. Furthermore, we implemented vital marketplace enlargement programs such as a new Audi City sales format. In a summer of 2012, we non-stop a initial cyber store nearby Piccadilly Circus in London. And given a commencement of this year, we have had a digital salon also in a core of Beijing. Various other measures were taken also in use and retailing to raise a products’ worldwide patron appeal.

Primarily due to changes in a combined group, executive losses increasing by 22.6 percent to 527 million euros in 2012. Other handling income, net, of 775 million euros was reduce than in a before year. The diminution compared with 2011 is generally a outcome of reduce income from banking hedging transactions. In sum therefore, we were means to somewhat boost a handling distinction compared with a before year, reaching a new record in a company’s story of 5.4 billion euros.

Let me now give we some sum of a pivotal drivers of this enlargement in earnings. we would like to start with a hostile factors, those that had a disastrous impact on earnings. We also were incompetent to shun a high energy of foe and a ensuing vigour on prices final year, generally in China and Western Europe. Nonetheless, we continued to follow a qualitative enlargement path; that is, a enlargement trail formed on sustainability.

Because one thing is transparent to us: Our reward business utterly righteously design us to say cost stability. For this reason, we have not participated in shopping marketplace share in a past, and we will not do so in a destiny either. Instead, we request a supports accessible to safeguard above all that we secure a vital marketplace positioning.

Let’s spin to investment. In serve to expanding a indication and record portfolio, a concentration of a desirous enlargement skeleton is on serve building a worldwide prolongation structures. Take for instance a enlargement of a plant in Győr, Hungary, where a new A3 Sedan will hurl off a public lines this year. Or a destiny plant in San José Chiapa in executive Mexico. We are now creation estimable allege output during those sites, that will beget income usually after a arriving start of production.

In addition, we will continue to strengthen a German locations in Ingolstadt and Neckarsulm in sequence to serve raise a company’s innovative energy and competitiveness. The ensuing boost in bound costs reduced gain by approximately 0.9 billion euros. However, a clever enlargement in territory sales is reflected by a certain outcome on gain of 1.1 billion euros. And on a product cost side, we achieved certain gain effects of 0.6 billion euros by a serve optimization of a element costs as good as by capability advances. Exchange-rate effects also had a certain impact on a enlargement of handling profit.

The Audi Group’s financial income amounted to 576 million euros in 2012. One of a categorical disastrous apparatus was a interest-related diminution in income from a dimensions of banking hedging transactions. In addition, losses for a compounding of non-current supplies increasing due to descending genuine seductiveness rates.

The Audi Group so posted distinction before taxation of approximately 6 billion euros in a year 2012.

The ongoing clever profitability of a Audi Group is also reflected in a enlargement of a pivotal sum for return: In 2012, we achieved an handling lapse on sales of 11.0 percent. In other words, we once again significantly surpassed a vital lapse mezzanine of 8 to 10 percent, notwithstanding a severe mercantile environment. This done a Audi Group one of a many essential manufacturers in a worldwide automotive courtesy also in a year 2012.

Ladies and gentlemen, let me now explain a categorical change piece items. The Audi Group’s sum resources increasing by about 9 percent to some-more than 40 billion euros in 2012. The poignant boost in non-current resources to approximately 18 billion euros is due on a one palm to aloft property, plant and apparatus associated to a enlargement of a worldwide business activities and a merger of a Ducati Group. On a other hand, equity-method investments increasing following a merger of a 30-percent seductiveness in Volkswagen Group Services. Current resources decreased, essentially due to a formerly mentioned acquisitions, to 22.4 billion euros.

On a other side of a change sheet, equity increasing by approximately 2.1 billion euros to 15 billion euros during a finish of a year. The categorical reason for a boost was a money injection by Volkswagen AG of 1.6 billion euros into a collateral haven of AUDI AG. The allowance of a remaining net distinction after a distinction send increasing equity by a serve 0.6 billion euros. As a result, a equity ratio of a Audi Group reached roughly 37 percent during Dec 31, 2012. The boost in liabilities of 1.3 billion euros to 25.4 billion euros essentially reflects a increasing sustenance for pensions caused by a reduce imputed seductiveness rate.

So a pivotal change piece sum also request a company’s financial fortitude and sound collateral structure.

Ladies and gentlemen, we will now give we some sum of a money upsurge statement. In 2012, we generated a money upsurge from handling activities of 6.1 billion euros, that is roughly during a spin of a before year.

At a same time, we done estimable investments in a future. So but deliberation changes in investments in companies, a money outflow for investing activities for business operations increasing from 2.8 billion euros to 3.2 billion euros. The categorical concentration was on a aforementioned investments in new products, innovative expostulate technologies and a enlargement of a worldwide prolongation plants.

We financed all of a investments totally out of a possess resources once again in 2012, but resorting to any form of borrowing. At a same time, but deliberation money outflows for investments in companies, we generated a net money influx of 2.9 billion euros.

Net liquidity decreased to 13.4 billion euros during a finish of 2012, essentially due to a merger of a Ducati Group and of a 30-percent seductiveness in Volkswagen Group Services.

Ladies and gentlemen, a year 2012 featured formidable mercantile conditions in many markets. In this environment, a financial opening of a Audi Group once again demonstrates a success of a corporate plan with a concentration on sustainability and qualitative growth. We contingency consistently continue along this path!

For a year 2013, we design steady enlargement in territory sales by a Audi brand. In this context, from today’s perspective, a income of a Audi Group and of a Automobiles shred will boost slightly. Increases in territory sales of motorcycles and income are designed for a Ducati code as well.

The Automobiles shred should grasp an handling lapse on sales during a tip finish of a vital aim mezzanine of 8 to 10 percent. An handling lapse on sales of 8 to 10 percent is designed also for a Motorcycles segment.

In a initial entertain of this year – as Mr. Stadler already mentioned – we shipped some-more than 369,000 automobiles of a Audi brand. This represents an boost over a prior-year duration of 6.8 percent. Despite a formidable mercantile conditions, a Audi Group achieved sum income of 11.7 billion euros – really tighten to a spin of a prior year.

At a same time, we continued to make estimable investments in a future. In serve to expanding a indication and record portfolio, a concentration was on allege output for a enlargement of a prolongation network. In sold opposite this backdrop, handling distinction of 1.3 billion euros was 7.3 percent reduce than in 2011. The ensuing handling lapse on sales of 11.1 percent was once again above a vital aim mezzanine of 8 to 10 percent.

Once again this year, during a finish of my debate we would like to pull your courtesy to a Annual Report 2012, that we perceived currently during a information table together with a papers for a Annual Shareholders’ Meeting. In serve to a imitation chronicle in German, English and Chinese, a Multimedia Annual Report offers additional sparkling calm such as video and audio contributions relating to a repository section. A special underline this year is that with a chronicle of a Multi Media Interface blending for a iPad®, we navigate faster, some-more simply and some-more conveniently by comparison highlights of a app: discerning control of a far-reaching operation of functions – only like a strange in your Audi!

Now let’s dive into a universe of a Multimedia Annual Report with a brief trailer.

Thank we for your attention!

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