In the challenging fiscal year 2021, the Audi Group's operating profit and net cash flow reached a record high: sales revenue of approximately EUR 53,068 million, operating profit of EUR 5,498 million, operating profit margin of 10.4% and net cash flow of EUR 7,757 million. In the Chinese market, Audi's sales revenue amounted to 1.14 billion euros.
The sufficient number of orders, the growing demand, and the continuous cost optimization give the Audi Group full confidence in the 2022 fiscal year. According to Audi CEO Dusman, "With the Vorsprung 2030 strategy, Audi has a clear plan for future electrification and digital development. This year, we will focus more on sustainability, electrification, digitalization and more. "Focusing on the Chinese market, Audi is further deepening the transformation of electrification.
"Audi is on the right track and will continue to accelerate the transformation of its business model to carbon-neutral, connected mobility." At the group's annual earnings report press conference held yesterday (March 17), Dusman, chairman of the board of management of Audi Automobile AG, said.
Dusman, Chairman of the Board of Management of Audi AG, takes a screenshot of the press conference
Record operating profit and net cash flow
In the challenging 2021 fiscal year, the Audi Group's operating profit and net cash flow reached record highs. In FY2021, Audi generated sales of approximately EUR 53,068 million (FY2020: EUR 49,973 million), operating profit of EUR 5,498 million (FY2020: EUR 2,569 million) and an operating profit margin of 10.4% (FY2020: 5.1%). The Audi Group's net cash flow was €7,757 million (FY2020: €4,589 million).
Despite the challenge of a shortage of semiconductor supplies, customer deliveries to the Audi brand in fiscal 2021 were almost the same as in the previous year. In 2021, the Audi brand delivered a total of 1680512 cars to customers (2020: 1692773), almost the same as in 2020 (-0.7%). Of particular concern is the strong growth in the delivery of Audi brand pure electric vehicles. In 2021, Audi delivered a total of 81,894 pure electric models (2020: 52,011 units) to customers, an increase of 57.5% year-on-year.
In addition to the active management of semiconductor supply shortages and excellent cost optimization, factors that have a positive impact on financial performance include good pricing strategies, residual asset value management, and outstanding performance of Lamborghini and Ducati brands, raw material hedging and positive currency exchange rates.
In the Chinese market, Audi generated sales of EUR 1.14 billion (FY2020: EUR 1.009 billion). Audi's business in China is also reflected in terms of financial income, including the China business, the Audi Group's operating margin reached 12.5%.
"Audi has managed to have had an extraordinary year. In a challenging environment, Audi has demonstrated its financial prowess and set new records in terms of operating profit and net cash flow," said Jurgen Rittersberger, Managing Director of The Board of Management of Audi AG. ”
We are confident in fiscal year 2022
The sufficient number of orders, the growing demand, and the continuous cost optimization give the Audi Group full confidence in the 2022 fiscal year. While the semiconductor supply shortage has improved slightly, the impact of the international situation on industry growth and Audi Group's sales revenues, finances and assets cannot be estimated.
In fiscal 2022, audi group expects to deliver between 1.8 million and 1.9 million vehicles. Sales revenue is expected to be between €62 billion and €65 billion and maintain strong pricing levels. Operating sales margins are expected to be between 9% and 11%. As operations normalize and investment activities increase, there will be a slight increase in corporate costs. The Group's net cash flow is expected to be between €4.5 billion and €5.5 billion.
For the first time, audi group financial performance forecasts for 2022 will take into account the Bentley brand. Within the Audi Group, the Audi, Bentley, Ducati and Lamborghini brands will work more closely together in the future. For example, the parties will jointly develop joint plans for electric mobility and digital technologies. The Audi Group expects to realize the synergy potential of up to nine figures in value and set ambitious targets – from 2030, the Group will deliver more than 3 million vehicles to customers annually and plans to achieve an operating sales margin of more than 11%.
"This year, we will focus more on sustainability, electrification, digitalization and other areas, and continue to promote the implementation of the 2030 transformation strategy." This means that we will gradually fade away from internal combustion engine technology, develop a complete roadmap for electrification transformation, and actively work with CARIAD, the software division of the Volkswagen Group, to create new digital business models and services. "With the Vorsprung 2030 strategy, Audi has a clear plan for future electrification and digital development. ”
Guided by a clear strategy and ambitious goals, Audi is systematically transitioning to a sustainable business model. As an important part of the "Vorsprung 2030" strategy, Audi became the first German high-end car manufacturer to announce a roadmap for the withdrawal of its fuel vehicle business in mid-2021. Starting in 2026, All of Audi's new models released to the global market will be converted to pure electric models. In 2026, Audi plans to offer more than 20 pure electric models.
With the release of the A6 Avant e-tron concept, the Audi brand demonstrates its determination to further expand its all-electric lineup. The subsequent production version of the Audi A6 e-tron will be the first low-chassis model based on the new high-end electrification platform PPE.
Audi Group annual financial report press conference site press conference screenshot
Further deepen the electrification transformation in China
Focusing on the Chinese market, Audi is further deepening the transformation of electrification. By 2024, Audi and Volkswagen Group China and joint venture partners plan to invest around €15 billion in e-mobility in China. In addition to continuing to expand its lineup of electric models, Audi will also invest in innovative technologies such as autonomous driving and automotive electronics.
At the same time, Audi provides a full range of charging services for China's electric vehicle customers, covering both home and public charging scenarios. In terms of home charging, Audi provides customers with free Audi brand charging wall boxes and professional survey and installation services, with a wall box power of up to 11kW, and can be controlled and shared with other designated car owners through Audi's exclusive App. In terms of public charging, by the end of 2021, audi exclusive apps cover 250,000 public charging piles, providing full-process functions from search navigation to payment charging.
On this basis, Audi and its partner Camex provide users with a faster, better environment and more convenient charging experience. Users can make an appointment to use the super charging pile of Kaimeis in the Audi exclusive App, and the payment experience is more high-quality. Caymeis will deploy more than 6,000 charging terminals in 8 key electric vehicle consumption cities across the country, achieving high-density coverage of 1 charging station within 5 kilometers of the main urban area. By 2025, the number of Kemers charging terminals is planned to reach 17,000.
In addition, Audi provides one-click power-up services for electric vehicle owners, including mobile charging vehicles and door-to-door car charging. At the same time, Audi opened a 24-hour customer hotline to provide detailed and professional consulting services for electric vehicle owners.
In addition to powering the charging infrastructure, the company is prioritizing data-related businesses. For example, CARIAD, the software division of the Volkswagen Group, is working with strategic partners to accelerate software development and strengthen technical capabilities. Audi focuses on innovative digital services, and the introduction of holoride is a typical example. Through this platform, Audi is transforming cars into experiential spaces for in-car entertainment. The virtual reality-based entertainment feature will go to market this summer. (China Economic Network reporter Wang Yueyue)