Recently, Audi Group held the 2021 financial report annual meeting, announcing a number of financial data such as total revenue, pre-tax income, net profit, cash flow and so on in fiscal 2021. Despite the impact of unfavorable factors such as the continuation of the epidemic and the shortage of chips, Audi has still shown strong brand strength.
Profits hit record highs
In 2021, Audi Group's operating margin, net cash flow and other financial data reached a record high. Over the past year, audi group sales revenue reached 53.1 billion euros, an increase of 6.2% year-on-year, with operating profit and net cash flow both reaching record levels.
Operating profit rose 114% to EUR 5.5 billion, operating profit doubled from 5.1% in the previous year to 10.4% in 2021, and further increased to 12.5% if the contribution of the Chinese business is included.
Audi attributed the significant increase in profitability to its ability to adjust in the face of supply chain bottlenecks and the impact of the epidemic, such as "active supply chain management, good pricing levels, and excellent cost control capabilities."
Audi delivered 1.68 million new vehicles to customers worldwide in the past year, almost the same as the previous year. The Chinese market remains Audi's largest single market in the world, with Chinese sales accounting for more than 40% of global sales, or 701,000 units. Among them, the delivery volume of pure electric vehicle 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.
It is worth mentioning that Audi's performance in China is also highlighted in terms of financial income, including the China business, the operating margin of audi group reached 12.5%. Among them, sales revenue in China reached 1.14 billion euros, compared with 1.009 billion euros in fiscal 2020.
"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. ”
Transition to a sustainable business model
Audi's lineup of pure electric vehicles more than doubled last year, and now the Audi family has eight pure electric models, and the proportion of pure electric vehicle deliveries in the brand has increased from 3% to 5% last year. Audi has set its sights on the higher.
Audi is planning the implementation steps of the "Vorsprung 2030 Strategy" step by step. In this strategy, Audi plans to develop only electric vehicles after 2026 and no more cars with internal combustion engines after 2033. The strategy is very bold and forward-looking, and Audi's confidence is built on the financial strength he has to accomplish it.
Audi announced last year that it would increase its investment in 2020 to 2026 to 37 billion euros, of which 18 billion euros were invested in electrification and hybrid. This means that Audi will use nearly half of its total investment to retain the future, transforming itself into a truly connected and sustainable high-end mobile provider.
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%. The Group's net cash flow is expected to reach between €4.5 billion and €5.5 billion due to the increasing normalization of operations and increased investment activities, resulting in a slight increase in corporate costs.
It is worth mentioning that for the first time, audi group's financial performance forecast for 2022 has taken the Bentley brand into account.
"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 said, "It is expected to realize the synergy potential of up to nine figures." ”
At the same time, the Audi Group has set ambitious targets to deliver more than 3 million vehicles to customers every year from 2030 and plans to achieve an operating sales margin of more than 11%.
Led by clear goals, Audi is systematically transitioning to a sustainable business model. Audi is the first German high-end automaker to announce a roadmap for the withdrawal of its fuel vehicle business in 2021. Audi Group announced that from 2026 onwards, all of Audi's new models for the global market will be pure electric models. In 2026, Audi plans to offer more than 20 pure electric models.
Continue to deepen the Chinese market
It is worth noting that Audi's business in China continues to perform strongly.
In 2021, the Audi Group sold 727,000 vehicles in China, of which the joint venture FAW-Volkswagen Audi contributed the vast majority of sales, and China continued to be Audi's largest single market in the world. Audi's sales revenue in China in FY2021 amounted to EUR 1.14 billion (FY2020: EUR 1.009 billion). Audi Group revealed that Audi and its partners FAW and SAIC Will further work together in the future to enhance Audi's influence in the Chinese market.
Dusman, chairman of the board of management of Audi AG, said that Audi has a clear plan for future electrification and digital development, and Audi will continue to accelerate the transformation of its business model to carbon neutral and connected mobility.
In the Chinese market, Audi is also further deepening the transformation of electrification. It is reported that by 2024, Audi and Volkswagen Group (China) and other joint venture partners plan to jointly invest about 15 billion euros in the field of electric 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.
In terms of models, Audi revealed: "By 2026, Audi plans to provide more than 10 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, Audi will work with its partners to produce pure electric Audi models based on the PPE platform in Changchun, and continue to expand the lineup of local electric vehicle models. ”
It is understood that Audi will invest about 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.
In terms of electric vehicle charging facilities in China, Audi's partner Camus will deploy more than 6,000 charging terminals in 8 key electric vehicle consumption cities in China, 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.