31.10.2019 AUDI AG  DE0006757008

DGAP-News: Audi Group: Third Quarter Report 2019


 

DGAP-News: AUDI AG / Key word(s): Quarterly / Interim Statement/Quarter Results
Audi Group: Third Quarter Report 2019

31.10.2019 / 10:00
The issuer is solely responsible for the content of this announcement.


AUDI GROUP FROM JANUARY TO SEPTEMBER 2019 - CORE MESSAGES

- Stable business figures despite numerous challenges:

- Difficult market environment as well as model changeovers and therefore temporarily restricted portfolio in certain countries impact delivery figures

- Robust financial key figures despite lower volume and the need to continue investing in the future

- Revenue and related key performance indicators significantly influenced by the deconsolidation of multi-brand sales companies, as forecast

- Deliveries to customers Audi brand down by -3.6 percent to 1,357,102 (1,407,672) vehicles (global demand for cars -5.0 percent);
declines in Europe and the USA - growth and record volume in China

- Revenue lower than in the prior-year period at EUR 41.3 (44.3) billion owing to elimination of multi-brand trading business (deconsolidation); Audi brand revenue +5.8 percent as a result of mix effects thanks to welcome growth in the full-size segment

- Operating profit reaches EUR 3.2 (2.9) billion, with the prior year negatively impacted by special items (EUR -800 million);
Operating return on sales at 7.8 (6.5) percent - before special items: 7.8 (8.3) percent

- Audi Transformation Plan: measures with an effect on the operating business of more than EUR 1.3 billion implemented in the period under review

- Net cash flow still strong at EUR 3.3 (3.1) billion thanks to investment discipline

- Outlook: forecast for financial figures for 2019 as a whole stable

- Adjustment: Audi brand deliveries now expected to be slightly above prior-year level

- Slight increase in revenue thanks to positive mix effects

- Operating return on sales still at 7.0-8.5 percent

- Net cash flow on target within range of EUR 2.5-3.0 billion

- Research and development ratio moderately higher than the strategic target corridor of 6.5-7.0 percent, ratio of capex slightly below 5.5-6.0 percent

- Further positive effects expected from the Audi Transformation Plan

 

ECONOMIC ENVIRONMENT

The global economy continued to grow in the first nine months of 2019, although momentum declined over the course of the year. In both developed and emerging economies, average growth in gross domestic product (GDP) was lower than in the prior-year period. The economic development was influenced, in particular, by increasing trade disputes worldwide and the rise in market uncertainty.

In Western Europe, GDP increased slightly overall, but the pace of growth declined year-on-year. Negative factors included, among others, a rise in global tension, weaker worldwide demand and the continued risk of the United Kingdom leaving the European Union (EU) without a withdrawal agreement ("no-deal Brexit"). Central and Eastern Europe, especially Russia, the largest economy in this region, also generated slower year-on-year growth. In contrast, the U.S. economy continued to grow robustly - although with dwindling momentum - on the back of good consumer spending. Brazilian GDP increased somewhat, albeit from a low base. The People's Republic of China reported a slightly slower growth rate, yet still high by international standards. Measures taken by the Chinese government to support the economy had a stabilizing effect.

Global demand for cars declined by -5.0 percent to 59.2 (62.3) million vehicles between January and September 2019, partly due to increased economic uncertainty. The Western Europe, North America, South America and Asia-Pacific regions saw a drop in new registrations. Sales figures only stabilized year-on-year in Central and Eastern Europe.

In the Western European car market as a whole, new registrations were down by -2.0 percent. However, demand for passenger cars in individual Western European markets varied. In Germany, new registrations performed positively, rising 2.5 percent on the back of higher commercial demand.
By contrast, demand for passenger cars in the United Kingdom fell by -2.5 percent, partly because of the uncertain impact of the exit negotiations between the United Kingdom and the EU. Similarly, sales of passenger cars declined by -1.6 percent year-on-year in both France and Italy. The passenger car market in Spain contracted significantly by -7.3 percent. In Central and Eastern Europe, new registrations were around the previous year's level. The individual markets developed at different rates, however. In Russia, for example, sales of passenger cars fell by -1.9 percent in the first nine months of 2019.

The U.S. market for passenger cars and light commercial vehicles contracted by -1.2 percent year-on-year. However, the shift in demand toward SUVs and pick-up models in the USA remains intact. Contrary to the general market trend in South America, the Brazilian market for passenger cars and light commercial vehicles continued to recover and new registrations rose by 8.8 percent.

China, the world's largest passenger car market, recorded a decline of -7.6 percent. In particular, the ongoing trade dispute between China and the USA held back purchases by Chinese customers in the first nine months of the year.

The decline in market demand and major challenges arising from the need to bring business models in line with future requirements prompted numerous companies in the car and supplier industries to introduce or tighten efficiency programs in the first nine months of 2019.

From January to September 2019, the established motorcycle markets in the displacement segment above 500 cc recorded a rise in demand of 1.0 percent. Demand improved particularly in Western Europe. By contrast, new registrations of motorcycles in the USA were below the prior-year level.

 

PRODUCTION

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found at the end of the document.


In the period January through September 2019, the Audi Group produced a total of 1,321,501 (1,402,393) cars. This figure includes 418,140 (457,619) Audi vehicles manufactured by the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China). The decline can be attributed, among other things, to the drop in market demand worldwide, adjustments to the production program in line with inventory reduction as well as to numerous model changeovers. Of the total number of vehicles built by the Audi Group worldwide, 1,315,009 (1,398,301) cars were manufactured by the premium brand Audi and 6,492 (4,092) vehicles by the Lamborghini brand. The Lamborghini Urus of our Italian subsidiary went into series production last year, contributing to significant growth in the production volume year-on-year. In addition, the Ducati brand manufactured 44,392 (45,372) motorcycles.

At our Group headquarters in Ingolstadt, a total of 333,815 (367,270) cars of the Audi brand left the production lines in the first nine months of 2019. In Neckarsulm we manufactured 133,621 (135,431) Audi models in the same period.
Audi México S.A. de C.V. produced 127,373 (134,134) of the Audi Q5 at the site in San José Chiapa (Mexico).
In Győr (Hungary) we manufactured 122,396 (69,753) vehicles at Audi Hungaria Zrt in the period under review. The year-on-year increase is attributable in particular to the start of production of the Audi Q3 and the Audi Q3 Sportback models at this site.
At our Belgian production site in Brussels, we manufactured a total of 27,768 (64,310) vehicles of the brand with the Four Rings at Audi Brussels S.A./N.V. The significant reduction is due to the restructuring of the site for carbon-neutral production of electric vehicles. To this end, production of the two fully electric models, the Audi e-tron and the Audi e-tron Sportback, is being ramped up successively in Brussels, while the Audi A1 previously manufactured at this site is now coming off the production line in Martorell (Spain).
Audi do Brasil Indústria e Comércio de Veiculos Ltda., São Paulo (Brazil), produced a total of 1,794 (5,710) cars in São José dos Pinhais near Curitiba in the period under review.
In the first three quarters of 2019, a total of 61,186 (67,907) and 86,791 (89,870) Audi vehicles were produced at the Volkswagen Group sites in Martorell (Spain) and Bratislava (Slovakia) respectively.
In addition, 2,125 (6,297) vehicles of the brand with the Four Rings were manufactured at the Volkswagen Group site in Aurangabad (India).
In China, the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China), manufactured 309,780 (390,559) cars of the Audi brand at its company headquarters in Changchun and 83,581 (66,971) Audi vehicles in the southern Chinese city of Foshan in the period under review. Furthermore, 24,779 (89) vehicles were produced at the Tianjin site. Local series production of the Audi Q3 had commenced in Tianjin in the first quarter of 2019, while the Q2 L e-tron - the first fully electric vehicle for the Chinese market - will be produced at the Foshan site from the fourth quarter.

The Audi Group produced 400,824 (377,640) vehicles worldwide in the third quarter of 2019. This figure includes 151,036 (151,181) Audi vehicles manufactured by the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China). The Audi brand accounted for 398,925 (375,918) of the total cars produced, and the Lamborghini brand for 1,899 (1,722). The Ducati brand manufactured 9,633 (7,375) motorcycles in this period.


Car production by model 1)

     
  1-9/2019 1-9/2018
Audi A1 - 8,750
Audi A1 Sportback 60,096 55,916
Audi A1 citycarver 1,072 2
Audi Q2 93,254 69,765
Audi A3 Sportback 93,871 124,211
Audi A3 Sedan 76,838 93,204
Audi A3 Cabriolet 6,563 8,229
Audi Q3 133,421 137,172
Audi Q3 Sportback 3,600 -
Audi TT Coupé 9,996 7,352
Audi TT Roadster 2,605 2,293
Audi A4 Sedan 169,577 180,457
Audi A4 Avant 62,590 65,506
Audi A4 allroad quattro 6,876 12,622
Audi A5 Sportback 51,411 59,466
Audi A5 Coupé 9,585 14,543
Audi A5 Cabriolet 8,838 10,291
Audi Q5 212,336 235,208
Audi A6 Sedan 121,998 143,652
Audi A6 Avant 41,446 34,748
Audi A6 allroad quattro 3,209 7,571
Audi A7 Sportback 10,907 15,296
Audi e-tron 27,621 449
Audi e-tron Sportback 147 -
Audi Q7 52,514 81,225
Audi Q8 34,716 9,263
Audi A8 18,211 19,446
Audi R8 Coupé 1,143 1,156
Audi R8 Spyder 568 508
Audi brand 1,315,009 1,398,301
Lamborghini Urus 3,994 1,033
Lamborghini Huracán 1,751 2,153
Lamborghini Aventador 747 906
Lamborghini brand 6,492 4,092
Automotive segment 1,321,501 1,402,393
     
 

1) The table includes 418.140 (457.619) Audi models produced by the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China).



Car engine production

     
  1-9/2019 1-9/2018
Audi Hungaria Zrt. 1,526,621 1,495,364
Automobili Lamborghini S.p.A. 735 927
Car engine production 1,527,356 1,496,291
     
 
 

Motorcycle production

     
  1-9/2019 1-9/2018
Scrambler 8,074 11,962
Naked/Sport Cruiser
(Diavel, Monster, Streetfighter)
13,056 9,354
Dual/Hyper
(Hypermotard, Multistrada)
15,269 11,713
Sport (SuperSport, Superbike) 7,993 12,343
Ducati brand 44,392 45,372
Motorcycles segment 44,392 45,372
     
 

Worldwide, the Ducati brand produced a total of 44,392 (45,372) motorcycles in the first nine months of 2019. 36,999 (37,774) of these were built at the company headquarters in Bologna (Italy). In the same period, Ducati also produced 6,789 (6,756) motorcycles at the Amphur Pluakdaeng site in Thailand. In addition, 604 (842) motorcycles were built in Manaus (Brazil) on a contract manufacturing basis.



DELIVERIES AND DISTRIBUTION 1)

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found at the end of the document.

1) The figures for the prior-year period have been marginally adjusted.


In the first nine months of 2019, the Audi Group delivered 1,363,659 (1,612,388) cars to customers worldwide. It should be noted that the prior-year figure still includes deliveries of other Volkswagen Group brands by multi-brand sales companies, which are no longer reported by the Audi Group as of January 1, 2019, as management responsibility for these companies has been transferred to Volkswagen AG, Wolfsburg.
1,357,102 (1,407,672) vehicles of the Audi brand were delivered to customers. The decline of -3.6 percent is mainly attributable to weakened market demand. Thus, total market volume shrank by -5.0 percent in the same period. Audi was therefore able to keep its market share stable. Furthermore, our current product cycle affected delivery figures, as not all new models were yet available worldwide in the reporting period. Of the total Audi models delivered, 446,330 (440,197) units were manufactured locally by FAW-Volkswagen Automotive Company, Ltd., Changchun (China). The Lamborghini brand delivered a total of 6,517 (3,554) vehicles to customers in the first three quarters of 2019. Compared with the prior-year period, this was positively influenced by the market success of the Super SUV Lamborghini Urus, which has been available since summer 2018. In addition, the Ducati brand recorded a delivery volume of 43,827 (43,948) motorcycles.

In Western Europe, our delivery volume was affected by the restricted availability of model variants at the start of the year due to the changeover to the WLTP test cycle and by renewal of our product portfolio. As a result, the volume declined to 559,994 (577,877) Audi brand vehicles.
Deliveries on our home market Germany declined slightly year-on-year to 215,515 (218,662) cars. Our volume in the United Kingdom fell to 113,336 (124,081) Audi vehicles, impacted by the continuing uncertainty surrounding Brexit, which has still not been resolved. With 47,811 (47,008) deliveries of the Audi brand, we recorded a slightly higher volume than in the prior-year period in the Italian market. While demand for Audi vehicles in France improved by 2.6 percent, our sales figures in Spain dropped by -12.1 percent.

In the Central and Eastern Europe region, we delivered a total of 35,166 (38,272) cars with the Four Rings to customers in the first nine months of 2019. In Russia, deliveries were at the previous year's level, while the volume declined in many other Central European countries.

In the same period we handed 192,437 (207,422) cars of the Audi brand over to customers in the North America region. In the USA, deliveries fell by -5.3 percent to 158,471 (167,420) units. The encouraging trend of our full-size models could not offset the restricted availability of vehicles and the challenging competitive situation in the reporting period. In Canada, our deliveries were also down.
Our sales figures in the South America region totaled 11,669 (13,943) Audi models, which was lower than in the prior-year period - partly due to decreasing deliveries in Brazil.

With 534,607 (542,858) Audi vehicles delivered to customers, we also recorded a slight decrease in volume in the Asia-Pacific region. By contrast, in China - our biggest single market - our sales figures rose to 491,040 (483,001) cars, an increase of 1.7 percent and thus a new record volume for the reporting period.

In the third quarter of 2019, our delivery figures dropped to 452,899 (512,467) vehicles worldwide. It should be noted that the prior-year figure still includes deliveries of other Volkswagen Group brands by multi-brand sales companies, which are no longer reported by the Audi Group as of January 1, 2019. A total of 450,922 (458,439) Audi brand models were delivered, including 167,054 (157,613) built locally by FAW-Volkswagen Automotive Company Ltd., Changchun (China). The Lamborghini brand delivered a total of 1,964 (1,227) vehicles worldwide between July and September 2019, while the Ducati brand delivered 12,105 (11,659) motorcycles in this period.


Car deliveries to customers by model 1) 2)

     
  1-9/2019 1-9/2018
Audi A1 153 9,817
Audi A1 Sportback 62,615 59,989
Audi Q2 98,043 73,493
Audi A3 15 970
Audi A3 Sportback 113,274 123,981
Audi A3 Sedan 82,267 99,439
Audi A3 Cabriolet 7,342 8,748
Audi Q3 130,215 138,883
Audi TT Coupé 9,143 10,934
Audi TT Roadster 3,201 2,997
Audi A4 Sedan 178,116 187,545
Audi A4 Avant 64,654 73,832
Audi A4 allroad quattro 5,382 14,317
Audi A5 Sportback 57,545 59,789
Audi A5 Coupé 10,545 16,804
Audi A5 Cabriolet 9,030 13,251
Audi Q5 219,365 226,433
Audi A6 Sedan 119,455 138,324
Audi A6 Avant 46,110 35,731
Audi A6 allroad quattro 2,028 7,268
Audi A7 Sportback 13,574 14,579
Audi e-tron 16,180 436
Audi Q7 61,950 72,317
Audi Q8 31,296 3,099
Audi A8 14,216 12,359
Audi R8 Coupé 951 1,507
Audi R8 Spyder 437 830
Audi brand 1,357,102 1,407,672
Lamborghini Urus 3,896 270
Lamborghini Huracán 1,751 2,283
Lamborghini Aventador 870 1,001
Lamborghini brand 6,517 3,554
Other Volkswagen Group brands 40 201,162
Automotive segment 1,363,659 1,612,388
     
 

1) The table includes deliveries of 446,330 (440,197) vehicles produced locally by the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China).

2) The figures for the prior-year period have been marginally adjusted.



Motorcycle deliveries to customers 3)

     
  1-9/2019 1-9/2018
Scrambler 9,648 10,733
Naked/Sport Cruiser (Diavel, Monster, Streetfighter) 11,292 10,885
Dual/Hyper (Hypermotard, Multistrada) 14,086 11,661
Sport (SuperSport, Superbike) 8,801 10,669
Ducati brand 43,827 43,948
Motorcycles segment 43,827 43,948
     
 

3) The figures for the prior-year period have been marginally adjusted.



The Ducati brand delivered 43,827 (43,948) motorcycles to customers worldwide in the first three quarters of 2019. Ducati increased deliveries in Western Europe in particular, while sales figures on the North American motorcycle market declined.

 

Market introductions in 2019: Audi models presented or introduced in the period under review

   
Models Main characteristics and new features
Audi TTS Coupé
(product improvement)
Sporty, sharper exterior design with three-dimensional radiator grille and new bumpers

High-performance engine with gasoline particulate filter and new 7-speed S tronic, precise and dynamic handling with progressive steering

Wider range of standard equipment (e.g. Audi drive select and Bluetooth)

Digital connectivity thanks to Audi connect using high-speed LTE standard and Audi smartphone interface (optional)

Presentation in July 2018, market introduction since January 2019, initially in Europe
Audi TTS Roadster
(product improvement)
Audi e-tron
(new model,
no predecessor)
Full-size SUV as first fully electrically powered series-production Audi model with electric all-wheel drive

Range of up to 411 km (according to WLTP), premium charging service with access to more than 110,000 charging points in Europe and fast-charging capability at up to 150 kW ensure high everyday suitability

Virtual exterior mirrors as a high-end option available for the first time in a series-production Audi car

Presentation in September 2018, market introduction since March 2019
Audi R8 Coupé
(product improvement)
Fastest series-production Audi with a more sporty design and higher performance

Optimized naturally aspirated engines with outstanding sound, particulate filters as well as more power and torque

Improvements to suspension provide even more stability and precision

Presentation in October 2018, phased market introduction since the first quarter of 2019
Audi R8 Spyder
(product improvement)
Audi TT RS Coupé
(product improvement)
Compact sports car with completely redesigned front end, larger side air intakes and striking rear end with side winglets on the rear wing giving it a dynamic look

Five-cylinder engine with distinctive sound; plus quattro permanent all-wheel drive

Optional RS sport suspension plus with adaptive dampers ensures excellent handling

Presentation in February 2019, market introduction since spring 2019
Audi TT RS Roadster
(product improvement)
Audi S6 TDI Sedan
(new model)
As an S model with TDI engine in Europe, combines versatility with sportiness and efficiency

V6 TDI engine with electric powered compressor and mild-hybrid technology with 48-volt electrical system delivers impressive driving dynamics with economical fuel consumption and low emissions

quattro permanent all-wheel drive as well as optional dynamic all-wheel steering and ceramic brake system

Presentation in April 2019, gradual market introduction since May 2019
Audi S6 TDI Avant
(new model)
Audi S7 TDI Sportback
(new model)
As an S model, four-door coupé with a TDI engine for sportiness and efficiency for the first time in Europe

V6 TDI engine with electric powered compressor and mild-hybrid technology with 48-volt electrical system delivers impressive driving dynamics with economical fuel consumption and low emissions

quattro permanent all-wheel drive as well as optional dynamic all-wheel steering and ceramic brake system

Presentation in April 2019, gradual market introduction since May 2019
Audi SQ8 TDI
(new model,
no predecessor)
Sporty top model in the Q series and an accomplished companion for business and leisure

Elegance of a four-dour premium coupé combined with the practical versatility of a large SUV

V8 TDI biturbo engine with 900 Nm torque combines sportiness and efficiency: the electric powered compressor supports the turbocharger during acceleration, the 48-volt mild-hybrid system reduces consumption

Extensive infotainment as standard: Audi virtual cockpit and MMI navigation plus with MMI touch response

Presentation in June 2019, phased market introduction since September 2019
 
Audi A6 allroad quattro
(new model)
New generation with quattro permanent all-wheel drive, adaptive air suspension with adjustable ground clearance and the body raised by up to 45 mm (compared with the Audi A6 Avant) for increased off-road capability

Superior features such as hill descent control as standard and optional dynamic all-wheel steering

Powerful V6 TDI engines, as standard with mild-hybrid technology for increased efficiency

Presentation in June 2019, market introduction since September 2019
Audi SQ5 TDI
(new model)
Sporty version of the Q5 model range with distinctive exterior design

V6 diesel engine with 700 Nm torque in Europe; 48-volt mild-hybrid technology, classic turbocharger and electric powered compressor combine superior and spontaneous power with improved efficiency

Standard suspension with damper control as well as optional air suspension

Presentation in February 2019, market introduction since September 2019
Audi Q7/SQ7 TDI
(product improvement)
Full-size SUV with generous space and excellent comfort in a new design and touch control concept in the interior

Electromechanical active roll stabilization and optional all-wheel steering for increased ride comfort

Engines with eight-speed tiptronic, permanent all-wheel drive and, in many engines, mild-hybrid technology; additionally, a V6 TFSI plug-in hybrid will be available in two performance levels from the end of 2019

Presentation in June 2019, gradual market introduction since September 2019
Audi A4/S4 TDI Sedan
(product improvement)
Mid-size models get sportier design accents, new engines and high connectivity

Electrification with mild-hybrid technology (depending on the engine) increases comfort and efficiency - in Europe, S4 TDI combines V6 TDI engine with 48-volt electrical system and electric powered compressor

New MMI touch display with acoustic feedback, more computing power and new Audi connect features

Presentation in June 2019, market introduction since September 2019
Audi A4/S4 TDI Avant
(product improvement)
Audi A4 allroad quattro
(product improvement)
Multi-talent with off-road character, characteristic design and high functionality

quattro permanent all-wheel drive; 35 mm more ground clearance compared with the Audi A4 Avant and the optional suspension with damper control combine a high level of ride comfort and good off-road qualities

New MMI touch display with acoustic feedback, more computing power and new Audi connect features

Presentation in June 2019, market introduction since September 2019
Audi A1 citycarver
(new model,
no predecessor)
New model in the A1 series with robust off-road look and large octagonal-design Singleframe

Higher ride height, more ground clearance and underbody protection look in painted stainless steel

Cutting-edge infotainment components: large digital instrument cluster, optional Audi virtual cockpit and MMI navigation plus, including Wi-Fi hotspot for mobile devices and parking information

Presentation in July 2019, introduction from fall 2019, initially in Europe
Audi Q3 Sportback/RS Q3 Sportback
(new model,
no predecessor)
First compact crossover model from the Audi brand, featuring an expressive design and good driving dynamics

Sport suspension, progressive steering and Audi drive select dynamic handling system as standard

Digital instrument cluster as standard, highly variable interior and longitudinally sliding rear seat

High-performance engines, optionally with mild-hybrid system, and powerful five-cylinder engine in the RS Q3 Sportback

Presentation in third quarter of 2019, gradual market introduction from fall 2019
Audi Q2 L e-tron
(new model,
no predecessor)
First fully electric Audi model in China with a range of up to 265 km (NEDC)

Longer wheelbase, designed specifically to meet the needs of Chinese customers

Electric motor on the front axle delivers 290 Nm torque

Produced and distributed exclusively in China, market introduction from November 2019
Audi S8
(new model)
Performance in the luxury class: emotion and driving performance join comfort and efficiency

V8 TFSI engine delivers 800 Nm torque thanks to twin turbochargers; integrated 48-volt mild-hybrid system with cylinder shutdown for fuel savings

Standard active suspension for greater comfort, dynamic all-wheel steering and sport differential

Presentation in October 2019, market introduction from November 2019, initially in Europe
Audi RS 4 Avant
(product improvement)
Power Avant with new design language and high-torque V6 biturbo engine

MMI touch display with acoustic feedback as the heart of the new operating system

Personalization of the driving experience by adjusting damper response (optionally in combination with
RS sport suspension plus) via Audi drive select

More than 30 driver assist systems (some optional) underline all-round characteristics

Presentation in October 2019, market introduction from December 2019
Audi RS 7 Sportback
(new model)
High-performance Sportback with a wider body offers uncompromising sportiness combined with unrestricted functionality

V8 biturbo engine with mild-hybrid technology delivers even more power with increased efficiency

Wheel-selective torque control, optional quattro sport differential and dynamic all-wheel steering ensure agile and safe handling

RS adaptive air suspension with controlled damping is standard for maximum performance, optional RS sport suspension plus with Dynamic Ride Control (DRC) and three-stage dampers

Presentation in September 2019, market introduction from December 2019, initially in Europe
Audi RS 6 Avant
(new model)
High-performance Avant in new design with a wider body, combines sportiness and practical benefits

V8 biturbo engine with mild-hybrid technology delivers even more power with increased efficiency

Audi drive select dynamic handling system delivers agility and dynamics, optionally in combination with RS sport suspension plus with Dynamic Ride Control (DRC) and three-stage dampers, dynamic all-wheel steering and quattro sport differential

Presentation in August 2019, market introduction from December 2019, initially in Europe
Audi RS Q3
(new model)
Compact, high-performance SUV combines performance and everyday suitability

High-performance, award-winning five-cylinder engine with optional RS sport exhaust system for a distinctive sound

Audi drive select dynamic handling system and specific RS sport suspension plus with damper control (optional) for enhanced dynamics, precise stability and agile handling coupled with even greater comfort

Presentation in September 2019, available from the end of 2019, initially in Europe
Audi A5 Coupé/S5 Coupé TDI
(product improvement)
Distinctive update of the exterior with elements from the new design language of the full-size class

Cutting-edge MMI touch operating concept with new 10.1-inch touch display and acoustic feedback

New functions-on-demand offering: Audi MMI navigation plus, DAB+ digital radio and Audi smartphone interface can be booked at any time after purchase online via the myAudi app

Many engines deliver greater efficiency through mild-hybrid technology - S models in Europe with TDI engine for impressive dynamic handling with economical fuel consumption and low emissions

Presentation in September 2019, market introduction from early 2020, initially in Europe
Audi A5 Sportback/S5 Sportback TDI
(product improvement)
Audi A5 Cabriolet
(product improvement)
 

Electric and electrified models presented or introduced in the period under review

   
   
Electric vehicles Plug-in hybrid vehicles
Audi e-tron (market introduction since March 2019)

Audi Q2 L e-tron (market introduction in China in November 2019) 1)
Audi A6 TFSI e (market introduction from October 2019)

Audi A7 Sportback TFSI e (market introduction since the third quarter of 2019)

Audi A8 TFSI e (market introduction from the fourth quarter of 2019)

Audi Q5 TFSI e (market introduction since the third quarter of 2019)

Audi Q7 TFSI e (market introduction at the end of 2019) 1)
   
 

1) These cars are not yet available for sale. They do not yet have type approval.



Market introductions in 2019: Lamborghini models presented or introduced in the period under review

   
Models Main characteristics and new features
Lamborghini Aventador SVJ
(new model)
Limited-edition generation of V12 top model from Lamborghini

New design features with focus on aerodynamic performance

All-wheel drive, all-wheel steering and lightweight construction for technical brilliance and optimized handling

Presentation in August 2018, gradual market introduction since start of 2019
Lamborghini Huracán EVO
(product improvement)
Next-generation V10 supercar takes performance of Huracán Performante to the next level

Lamborghini vehicle dynamics control system combined with permanent all-wheel drive and all-wheel steering produces even more agility and easiness to drive

New infotainment system with ultramodern connectivity solutions

Presentation in January 2019, gradual market introduction since spring 2019
Lamborghini Huracán EVO Spyder
(product improvement)
Open-top version of the Huracán EVO with a light, electro-hydraulic convertible top for pure Spyder feeling

Lamborghini vehicle dynamics control system combined with permanent all-wheel drive and all-wheel steering produces even more agility and easiness to drive

New infotainment system with ultramodern connectivity solutions

Presentation in February 2019, gradual market introduction since summer 2019
Lamborghini Aventador SVJ Roadster
(new model)
A limited-edition roadster with the power, performance and technology of the Aventador SVJ

New design features with focus on aerodynamic performance

All-wheel drive, all-wheel steering and lightweight construction for technical brilliance and optimized handling

Presentation in March 2019, gradual market introduction since summer 2019
Lamborghini Sián FKP 37
(small limited edition)
Most powerful Lamborghini of all time: supercar combining the legendary V12 engine with innovative hybrid technology and an electric motor with a supercapacitor for improved pulling power in a visionary design

Hybrid system uses regenerative braking system to charge the energy storage system

"Ad Personam" full customization program for each customer

Presentation in September 2019 - limited edition of 63 vehicles, already sold out
   
 


Ducati models introduced in the period under review

The Ducati brand has introduced a large number of new and revised models in 2019. One example is the market launch of the Panigale V4 R, the most powerful series-production motorcycle ever built by Ducati. In addition, the Ducati V4 S Corse model variant comes with an exclusive MotoGP paint finish. Complementing the new Ducati Multistrada 1260 Enduro, the versatile Multistrada 950 and 950 S - the latest additions to the Multistrada range - feature state-of-the-art technology to improve safety and enhance ride comfort. Other new launches in the 2019 model year are the second generation of the Diavel 1260 and 1260 S as well as the Ducati Hypermotard 950 and 950 SP, which have been completely revised, including improvements to the suspension and a highly modern electronics package. The Ducati Monster range also includes the revised versions of the 797 and 797+, along with a new model variant, the Monster 821 Stealth. In addition, the Scrambler models Icon, Café Racer, Full Throttle and Desert Sled were extensively revised for 2019.


 

FINANCIAL PERFORMANCE INDICATORS

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found at the end of the document.
 

- FIRST-TIME ADOPTION OF NEW ACCOUNTING STANDARDS

Since January 1, 2019, the Audi Group has recognized leases in accordance with IFRS 16. Due to the first-time recognition of rights of use and the corresponding lease liabilities, the balance sheet total increased slightly. In addition, this had a moderate impact on individual income statement items and on our financial key figures.
 

- CHANGES TO THE GROUP OF CONSOLIDATED COMPANIES

Effective January 1, 2019, management responsibility for the multi-brand sales companies Volkswagen Group Italia S.p.A., Verona (Italy), Audi Volkswagen Korea Ltd., Seoul (South Korea), Audi Volkswagen Middle East FZE, Dubai (United Arab Emirates), and Audi Volkswagen Taiwan Co., Taipei, was transferred to Volkswagen AG, Wolfsburg, under a control agreement and as a result the companies concerned were deconsolidated. Since the start of the 2019 fiscal year, these companies have been recognized in the consolidated financial statements of the Audi Group using the equity method - the legal ownership structures remain unchanged.

In addition, Autonomous Intelligent Driving GmbH (AID), Munich, a wholly owned subsidiary of AUDI AG, was fully consolidated in the consolidated financial statements of the Audi Group, also effective January 1, 2019. The initial consolidation of this company did not have a material impact on the net worth, financial position and financial performance of the Audi Group. On July 12, 2019, Volkswagen AG, Wolfsburg, announced that together with Ford Motor Company, Dearborn (USA), it will invest in Argo AI, Pittsburgh (USA), a company that specializes in software platforms for autonomous driving, and that this is to be effected, among other things, by the contribution of AID.
Prior to this, AUDI AG will sell its shares in AID to Volkswagen. The selling price has not yet been agreed and therefore it is not possible to state whether and in what amount a capital gain will result.
 

- FINANCIAL PERFORMANCE

The Audi Group generated revenue of EUR 41,332 (44,257) million in the first nine months of 2019. The decline is attributable to the deconsolidation of the multi-brand sales companies, which contributed a total of EUR 4.2 billion to revenue in the prior-year period.

In the Automotive segment, revenue was likewise below the prior-year level as a result of this, reaching EUR 40,765 (43,659) million. At the same time, revenue from the Audi brand car business improved to EUR 29,577 (27,958) million, partly as a result of mix effects due to the market success of the SUV model Audi Q8 and our new fully electric SUV Audi e-tron. In addition, revenue from the Lamborghini brand increased to EUR 1,343 (813) million as a result of high demand for the new Lamborghini Urus. While our revenue from business with engines and powertrains was at the prior-year level, revenue from the delivery of parts declined - due, among other things, to market management measures for our local production in China. Furthermore, there was a decrease in revenue from other automotive business, which primarily includes our genuine parts business.

In the Motorcycles segment, revenue generated by the Ducati brand amounted to EUR 567 (599) million. Stable volume was offset by predominantly negative mix effects.

 

Key operating performance figures, Audi Group

     
EUR million 1-9/2019 1-9/2018
Operating profit before special items 3,239 3,671
Special items - - 800
Operating profit 3,239 2,871
Automotive segment 3,200 2,832
Motorcycles segment 39 39
adjusted for effects of PPA 1) 56 56
Profit before tax 3,668 3,458
     
 
     
in % 1-9/2019 1-9/2018
Operating return on sales before special items 7.8 8.3
Operating return on sales 7.8 6.5
Automotive segment 7.8 6.5
Motorcycles segment 6.9 6.5
adjusted for effects of PPA 1) 9.9 9.4
Return on sales before tax 8.9 7.8
     
 

1) Effects of purchase price allocation


The operating activities of the Audi Group are reflected in the operating profit of EUR 3,239 (2,871) million, which corresponds to an operating return on sales of 7.8 (6.5) percent. The prior-year figure includes special items of EUR -800 million for the fine imposed on AUDI AG under the administrative order issued by the Munich II public prosecutor in connection with the regulatory offense proceedings which were completed in October 2018. The revenue reduction resulting from the deconsolidation of the multi-brand sales companies had a positive effect on the return ratio.

In the Automotive segment, we generated an operating profit of EUR 3,200 (2,832) million and an operating return on sales of 7.8 (6.5) percent. The lower volume of vehicles and the associated weaker capacity utilization of our plants had a negative impact. Increased upfront expenditure for future mobility solutions and a rise in personnel costs also weighed on current profitability, while lower distribution costs had a positive effect. In addition to an improved model mix and the encouraging figures reported by the Lamborghini brand, the successful continuation of the Audi Transformation Plan (ATP) also had a positive influence on our financial key figures in the period under review. Between January and September 2019, we implemented measures with an effect on operating business of more than EUR 1.3 billion. Since the start of the ATP in 2018, the program has already brought in more than EUR 3.3 billion. By 2022, the ATP is expected to raise a total of EUR 15 billion.

In the Motorcycles segment, the operating profit of the Ducati brand matched the prior-year level in the first three quarters of 2019 at EUR 39 (39) million. This represents an operating return on sales of 6.9 (6.5) percent. After elimination of the effects of purchase price allocation, Ducati achieved an operating profit of EUR 56 (56) million and an operating return on sales of 9.9 (9.4) percent.
 

Financial result, Audi Group

     
EUR million 1-9/2019 1-9/2018
Result from investments accounted for using the equity method 1) 130 191
of which FAW-Volkswagen Automotive Company, Ltd. 138 137
of which Volkswagen Automatic Transmission (Tianjin) Company Ltd. 134 116
of which SAIC Volkswagen Automotive Company Ltd. 19 4
Net interest result - 48 89
Other financial result 347 306
of which brand settlement/ performance-related income,
China business 2)
243 203
of which dividend of FAW-Volkswagen Automotive Company, Ltd. 3) - 162
Financial result 429 586
of which China business 4) 535 622
     
 

1) Influenced by the effect of initial consolidation of multi-brand sales companies

2) Financial brand settlement agreed between AUDI AG and Volkswagen AG, Wolfsburg, and performance-related income for China business in connection with associated companies

3) One-time effect in 2018

4) Includes the items FAW-Volkswagen Automotive Company, Ltd., Volkswagen Automatic Transmission (Tianjin) Company Ltd, SAIC Volkswagen Automotive Company Ltd., brand settlement for China business and dividend from FAW-Volkswagen Automotive Company, Ltd.


The financial result of the Audi Group was EUR 429 (586) million in the first nine months of 2019. The net interest result decreased due to higher expenses for the valuation of long-term provisions owing to interest rate cuts. In addition, dividend income as a one-time effect from the portion of the participating interest in FAW-Volkswagen Automotive Company, Ltd., classified as available for sale was include



Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBITDA1,2 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBITDA-Marge3 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBIT1,4 0,00 0,00 0,00 0,00 0,00 0,00 0,00
EBIT-Marge5 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Jahresüberschuss1 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Netto-Marge6 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Cashflow1,7 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Ergebnis je Aktie8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Dividende8 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Quelle: boersengefluester.de und Firmenangaben

1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer:

INVESTOR-INFORMATIONEN
©boersengefluester.de
WKN Kurs in € Einschätzung Börsenwert in Mio. €
0,000 0,00
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
0,00 0,00 0,00 0,00
KBV KCV KUV EV/EBITDA
0,00 0,00 0,00 0,00
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
Hauptversammlung
0,00 0,00 0,00
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
0,00% 0,00% 0,00% 0,00%
    
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