Recently, Audi Group released the relevant data for the 2021 fiscal year in a live broadcast, which is a very representative financial report.
First, due to the impact of the epidemic, the world's major car companies have been affected to varying degrees; second, as a global luxury brand, Audi's financial report data is of great reference value for the development of the global car market in 2021.
What is valuable is that although all kinds of unfavorable factors still hang over the automotive market like a haze, it has not covered up Audi's shining financial statements.
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Operating profit and net cash flow hit new highs under the pandemic
In FY2021, the Audi Group generated sales revenue 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).
This means that in FY2021, the Audi Group's operating profit and net cash flow both hit record highs.
This is mainly due to Audi's excellent results in terms of sales. According to the earnings report, despite the impact of the semiconductor supply shortage, the Audi brand's customer deliveries in fiscal 2021 were almost the same as 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%).
Commenting on this achievement, Jürgen Rittersberger, Managing Director of Finance and Legal of the Board of Management of Audi AG, said: "Audi has had a very successful and extraordinary year. In a challenging environment, Audi demonstrated its financial strength and set new records in terms of operating profit and net cash flow, and its strong financial performance not only demonstrated our visionary planning, but also our strong financial strength. ”
Behind the strong financial strength is Audi's excellent sales performance in segmented models.
From the model point of view, the delivery volume of pure electric models increased significantly, reaching 81,894 units, an increase of 57.5% year-on-year. Best-selling models include the all-new Audi Q4 e-tron with 21,098 units sold and the 6,896 Audi e-tron GT quattro sold. This means that Audi's electrification strategy has achieved phased achievements.
It is worth mentioning that in the global territory of the Audi Group, the Chinese market has made outstanding achievements.
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In China, an important part of Audi's victory
The Chinese market remains one of the most important markets for the Audi Group.
According to the financial report, in the fiscal year 2021, the financial results of the Audi Group reached 1.430 billion euros (fiscal year 2020: 1.618 billion euros). 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.
As Audi gradually shifts its focus to electrification, Audi's electrification development in China will also be next.
Wen Zeyue, president of Audi China, revealed that in the future development of Audi in China, it has formulated four goals, including launching high-end products and technologies; further strengthening research and development strength in China; building an ecosystem around Audi in China, and creating a high-quality customer experience journey for Chinese customers.
Specifically, 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.
In addition to models, in terms of infrastructure construction, Audi Group has also tilted toward Chinese users.
It is understood that Audi provides a full range of charging services for China's electric vehicle customers, covering 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.
Audi also 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.
As one of audi's most important sectors, Audi's China strategy can be seen as a microcosm of its global strategy, and when Audi's electrification in China is frequent, it has also adopted an "ALL IN" attitude in the world and promoted the electrification process at full speed.
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"ALL IN" electrification remains firm
In 2021, Audi announced the exit roadmap of the fuel vehicle business, which also made it the first German luxury car manufacturer to announce the end of the specific time node of the life cycle of the fuel vehicle, which means that it has no retreat on the road of electrification, and is moving forward at full speed.
When the time comes to 2022, Audi's determination to electrify "ALL IN" is still firm. Moreover, the "Vorsprung 2030" strategy has also made its path to electrification clearer.
"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.
Specifically, Audi is helping to drive electrification 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 China, Audi and its partner Kaimeis 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.
As an important step in Audi's electrification, the product matrix is also planned. 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 model based on the new high-end electrification platform PPE.
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Conclusion
For car companies, the significance of 2021 is not only full of challenges, but also a perfect time to reflect the wisdom of the enterprise, and Audi Group once again demonstrated the correct strategy of a mature luxury brand in this year.
Regarding the future, Audi is firm and confident.
According to Audi's forecast, Audi expects to deliver between 1.8 million and 1.9 million vehicles in fiscal 2022.
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.
Such optimistic predictions do not come out of nowhere. From 2022, the Bentley brand will be included in the financial performance of the Audi Group, and with the close cooperation of the Audi, Bentley, Ducati and Lamborghini brands, Audi has set its goal for 2020 at a new level: it will deliver more than 3 million vehicles to customers each year and plans to achieve an operating sales margin of more than 11%.
This is a new historical height for Audi and even the entire luxury brand.
In many challenging markets, Audi has shown the world a truth with beautiful numbers: only by adapting to the times and constantly facing challenges can audibly become a real winner.