Audi Group Financial Report 2020: Sales revenue of 53 billion euros Continue to promote electrification and digital transformation

Reporter Gong Mengze

On March 17, Audi released its 2021 financial report and related data in the form of live video broadcast at its headquarters in Ingolstadt. 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 had a net cash flow of €7.8 billion and a net cash flow of €7.8 billion. It can be said that it is a lot of money. At the same time, Audi is vigorously promoting the 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 will be on the right path and will continue to accelerate the transformation of its business model to carbon-neutral and connected mobility." ”

Audi sales revenue of 53 billion euros

Operating profit reached a record high of 5.5 billion euros

Thanks to the good pricing and strong market performance of the Audi Q3, Audi Q5, Audi e-tron family and Lamborghini and Ducati brands, Audi's 2021 financial report shows that Audi Group sales revenue reached 53.068 billion euros, an increase of 6.2% compared to the previous year.

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%.

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.

"Audi has managed to have had an extraordinary year. Audi has fully demonstrated its financial strength and set new records in terms of operating profit and net cash flow," said Jürgen Rittersberger, Finance and Legal Director of the Board of Management of Audi AG, which is confident 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.

Looking ahead to the 2022 fiscal year, audi group expects to deliver between 1.8 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.

Strengthen brand collaboration and focus on the long term

Continue to promote electrification and digital transformation

It is worth mentioning that Audi Group said that the financial performance forecast for 2022 will take the Bentley brand into account for the first time. 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%.

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).

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 1680512 vehicles to customers (2020: 1,692,773 units), 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: 707225 units).

"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. Dusman said.

Led by a clear strategy for the digitalization of electrical, 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.

(Editing by Li Bo)