€53 billion in sales revenue, €5.5 billion in operating profit, €7.8 billion in net cash flow... We are witnessing the Audi brand's "bucking the trend" in fiscal 2021.
On March 17, 2022, in the fiscal year 2021 report for global live broadcasting, the Audi brand 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.
【Annual customer delivery volume】
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 to customers (2020 deliveries: 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 (first half of 2020 deliveries: 707,225 units).
【Pure electric market performance】
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).
【Overall operating margin】
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%.
【Net Cash Flow Growth Rate】
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.
【Growth of the Chinese market】
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.
【Fiscal Year 2022 Forecast】
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.
【2030】
"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.