March 17, 2022 – In a challenging fiscal year 2021, Audi has once again demonstrated its strong corporate strength. The Audi Group's operating profit and net cash flow reached record highs. In fiscal 2021, Audi generated sales revenue of approximately EUR 53 billion, operating profit of EUR 5.5 billion and an operating profit margin of 10.4%. The Audi Group's net cash flow of 7.8 billion euros demonstrates its strong financial strength. 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. At the same time, Audi is firmly pushing its transformation process, and its pure electric vehicle deliveries have increased by 57.5% year-on-year.
"With the Vorsprung 2030 strategy, Audi has a clear plan for future electrification and digital development," said Deussmann, Chairman of the Board of Management of Audi AG, "And last year we made it clear that Audi is on the right path and will continue to accelerate the transformation of its business model to carbon-neutral, connected mobility." ”
Customer deliveries were essentially flat compared to 2020
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. At the same time, the delivery volume of pure electric vehicle models of the Fourth Ring brand has grown strongly. In 2021, the Audi brand delivered a total of 1,680,512 vehicles (2020: 1,692,773) to customers, almost the same as in 2020 (-0.7%). In the first half of last year, thanks to active supply chain management, Audi brand customer deliveries increased by 38.8% year-on-year to 981,681 units (H1 2020: 707,225 units).
Pure electric models grew strongly
The increase in customer deliveries for all-electric models confirms the correct direction of Audi's electrification transformation. 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. Best-selling models include the all-new Audi Q4 e-tron (21,098 units sold) and the Audi e-tron GT quattro (6,896 units sold).
Sales Revenue: 6.2% YoY
In FY2021, Audi Group sales generated €53,068 million (FY2020: €49,973 million). Thanks to good pricing and strong market performance of the Audi Q3, Audi Q5, Audi e-tron family, as well as lamborghini and Ducati brands, group sales revenue increased by 6.2% compared to the previous year. In order to achieve comparability and transparency, Audi spontaneously discloses information in accordance with the new EU green classification, according to which the Audi Group's income assessed in accordance with the EU green classification reaches 12.8%.
Operating profit: Record high
In addition to higher sales revenues, the positive impact of continuous cost optimization, raw material hedging and positive effects on currency exchange rates resulted in an operating profit of EUR 5,498 million (FY2020: EUR 2,569 million) and an operating profit margin of 10.4% (FY2020: 5.1%) in FY2021. 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%.
Financial Results: China continues to perform strongly
In the 2021 fiscal year, the Audi Group achieved financial results of EUR 1,430 million (FY2020: EUR 1,618 million). Audi's sales in China amounted to €1.14 billion (FY2020: €1,009 million). Audi and its partners FAW and SAIC will further work together in the future to enhance Audi's presence in the Chinese market, especially in the field of pure electric vehicles. By 2026, Audi plans to offer more than ten pure electric models in the Chinese market. Audi and its long-term partner FAW established Audi FAW New Energy Vehicle Co., Ltd. to achieve the next important milestone in Audi's electrification in China. As the controlling shareholder of the company, Audi will work with partners to produce pure electric Audi models based on ppE platform in Changchun, and continue to expand the lineup of local electric vehicle models. Audi will invest around 2.6 billion euros in the project. The first pure electric model based on the PPE platform in the Chinese market will be put into operation at the new plant at the end of 2024.
Net cash flow: A new record
In the 2021 fiscal year, the Audi Group's net cash flow reached a record 7,757 million euros (FY2020: 4,589 million euros). Thanks to higher profitability, working capital management during semiconductor supply shortages and continued investment optimization, the Group's net cash flow increased by almost 70% compared to the previous year.
Strong brand collaboration: The Audi Group is focused on the long term
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%.
Fiscal year 2022 forecast
"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 Jürgen Rittersberger, Managing Director of the Board of Management of Audi AG. ”
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.
Audi's global "Vorsprung 2030" strategy: continue to advance electrification and digital transformation
"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. Audi CEO Dusman said.
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.
Audi A6 Avant e-tron Concept: Represents the travel pioneer of the future
With the release of the Audi A6 Avant e-tron concept, the Four Rings brand demonstrates its determination to further expand its lineup of all-electric products. 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. Relying on the PPE platform, Audi is vigorously expanding its lineup of electric models and making electric vehicles mainstream in the future.
A comprehensive mobility ecosystem
As consumer demand shifts to electric vehicles and autonomous driving, users are increasingly focusing on a differentiated mobility ecosystem. To this end, Audi will help electric travel by creating a perfect charging system. Audi's e-tron charging service allows users to charge at 320,000 charging stations in 26 European countries with a single card. Over the past three years, the number of charging stations at e-tron Charging Services has more than tripled. In addition, Audi has also successfully piloted a high-end fast charging service outlet in Nuremberg - Audi charging center (Audi charging hub). In the second half of this year, Audi will launch a second pilot project in Zurich with a compact design to fully test the promotional nature of this conceptual platform.
In 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 Kemyss 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.
Audi will introduce ESG ratings
Audi firmly believes that sustainable business models need to be measured not only by ecological standards, but also by a perception of social responsibility and good corporate governance. To this end, the company has identified ESG as a key area of action in its "Vorsprung 2030" strategy and has integrated the ESG philosophy into all decisions related to the company and products. The basis for achieving this is a robust ESG management system. In order to improve comparability and transparency, Audi will not only voluntarily disclose information in accordance with the new EU classification regulations, but will also conduct ESG ratings through independent rating agencies in the future.
Jürgen Rittersberger said: "We hope audi can also perform well in ESG. When all business units base their actions on sustainability, Audi will be stronger and more competitive in the future, creating more value. This will be the foundation on which we can achieve sustained prosperity. ”