Audi Group Quarterly Report

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

Audi Group Quarterly Report

January 1 to September 30, 2019

Audi Vorsprung durch Technik

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

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

Audi A7 Sportback 55 TFSI e quattro

THIRD QUARTER REPORT 2019

INTERIM MANAGEMENT REPORT OF THE AUDI GROUP FROM JANUARY 1 TO SEPTEMBER 30, 2019

ECONOMIC ENVIRONMENT

The global economy continued to grow in the first nine months By contrast, demand for passenger cars in the United Kingdom

of 2019, although momentum declined over the course of the

fell by ?2.5 percent, partly because of the uncertain impact of

year. In both developed and emerging economies, average

the exit negotiations between the United Kingdom and the EU.

growth in gross domestic product (GDP) was lower than in the

Similarly, sales of passenger cars declined by ?1.6 percent

prior-year period. The economic development was influenced,

year-on-year in both France and Italy. The passenger car

in particular, by increasing trade disputes worldwide and the

market in Spain contracted significantly by ?7.3 percent. In

rise in market uncertainty.

Central and Eastern Europe, new registrations were around the

previous year's level. The individual markets developed at

In Western Europe, GDP increased slightly overall, but the pace of growth declined year-on-year. Negative factors

different rates, however. In Russia, for example, sales of

passenger cars fell by ?1.9 percent in the first nine months

3

included, among others, a rise in global tension, weaker

of 2019.

worldwide demand and the continued risk of the United

Kingdom leaving the European Union (EU) without a

The U.S. market for passenger cars and light commercial

withdrawal agreement ("no-deal Brexit"). Central and Eastern

vehicles contracted by ?1.2 percent year-on-year. However, the

Europe, especially Russia, the largest economy in this region,

shift in demand toward SUVs and pick-up models in the USA

also generated slower year-on-year growth. In contrast, the

remains intact. Contrary to the general market trend in South

U.S. economy continued to grow robustly ? although with

America, the Brazilian market for passenger cars and light

dwindling momentum ? on the back of good consumer

commercial vehicles continued to recover and new

spending. Brazilian GDP increased somewhat, albeit from a

registrations rose by 8.8 percent.

low base. The People's Republic of China reported a slightly

slower growth rate, yet still high by international standards.

China, the world's largest passenger car market, recorded a

Measures taken by the Chinese government to support the

decline of ?7.6 percent. In particular, the ongoing trade

economy had a stabilizing effect.

dispute between China and the USA held back purchases by

Chinese customers in the first nine months of the year.

Global demand for cars declined by ?5.0 percent to

59.2 (62.3) million vehicles between January and September

The decline in market demand and major challenges arising

2019, partly due to increased economic uncertainty. The

from the need to bring business models in line with future

Western Europe, North America, South America and Asia-

requirements prompted numerous companies in the car and

Pacific regions saw a drop in new registrations. Sales figures

supplier industries to introduce or tighten efficiency programs

only stabilized year-on-year in Central and Eastern Europe.

in the first nine months of 2019.

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.

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.

THIRD QUARTER REPORT 2019

PRODUCTION

In the period January through September 2019, the Audi Group Sportback, is being ramped up successively in Brussels, while

produced a total of 1,321,501 (1,402,393) cars. This figure

the Audi A1 previously manufactured at this site is now coming

includes 418,140 (457,619) Audi vehicles manufactured by

off the production line in Martorell (Spain).

the associated company FAW-Volkswagen Automotive

Audi do Brasil Ind?stria e Com?rcio de Veiculos Ltda., S?o Paulo

Company, Ltd., Changchun (China). The decline can be

(Brazil), produced a total of 1,794 (5,710) cars in S?o Jos? dos

attributed, among other things, to the drop in market demand Pinhais near Curitiba in the period under review.

worldwide, adjustments to the production program in line with In the first three quarters of 2019, a total of 61,186 (67,907)

inventory reduction as well as to numerous model

and 86,791 (89,870) Audi vehicles were produced at the

changeovers. Of the total number of vehicles built by the

4

Audi Group worldwide, 1,315,009 (1,398,301) cars were

Volkswagen Group sites in Martorell (Spain) and Bratislava (Slovakia) respectively.

manufactured by the premium brand Audi and 6,492 (4,092)

In addition, 2,125 (6,297) vehicles of the brand with the Four

vehicles by the Lamborghini brand. The Lamborghini Urus of

Rings were manufactured at the Volkswagen Group site in

our Italian subsidiary went into series production last year,

Aurangabad (India).

contributing to significant growth in the production volume

In China, the associated company FAW-Volkswagen

year-on-year.

Automotive Company, Ltd., Changchun (China), manufactured

In addition, the Ducati brand manufactured 44,392 (45,372)

309,780 (390,559) cars of the Audi brand at its company

motorcycles.

headquarters in Changchun and 83,581 (66,971) Audi vehicles

in the southern Chinese city of Foshan in the period under

At our Group headquarters in Ingolstadt, a total of

review. Furthermore, 24,779 (89) vehicles were produced at

333,815 (367,270) cars of the Audi brand left the production

the Tianjin site. Local series production of the Audi Q3 had

lines in the first nine months of 2019.

commenced in Tianjin in the first quarter of 2019, while the

In Neckarsulm we manufactured 133,621 (135,431) Audi

Q2 L e-tron ? the first fully electric vehicle for the Chinese

models in the same period.

market ? will be produced at the Foshan site from the fourth

Audi M?xico S.A. de C.V. produced 127,373 (134,134) of the

quarter.

Audi Q5 at the site in San Jos? Chiapa (Mexico).

In Gyr (Hungary) we manufactured 122,396 (69,753)

The Audi Group produced 400,824 (377,640) vehicles

vehicles at Audi Hungaria Zrt in the period under review. The

worldwide in the third quarter of 2019. This figure includes

year-on-year increase is attributable in particular to the start

151,036 (151,181) Audi vehicles manufactured by the

of production of the Audi Q3 and the Audi Q3 Sportback

associated company FAW-Volkswagen Automotive Company,

models at this site.

Ltd., Changchun (China). The Audi brand accounted for

At our Belgian production site in Brussels, we manufactured a

398,925 (375,918) of the total cars produced, and the

total of 27,768 (64,310) vehicles of the brand with the Four

Lamborghini brand for 1,899 (1,722). The Ducati brand

Rings at Audi Brussels S.A./N.V. The significant reduction is

manufactured 9,633 (7,375) motorcycles in this period.

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

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

Audi Q3 Sportback

THIRD QUARTER REPORT 2019

Car production by model 1)

1?9/2019

1?9/2018

Audi A1 Audi A1 Sportback Audi A1 citycarver Audi Q2 Audi A3 Sportback Audi A3 Sedan Audi A3 Cabriolet Audi Q3 Audi Q3 Sportback Audi TT Coup? Audi TT Roadster Audi A4 Sedan Audi A4 Avant Audi A4 allroad quattro Audi A5 Sportback Audi A5 Coup? Audi A5 Cabriolet Audi Q5 Audi A6 Sedan Audi A6 Avant Audi A6 allroad quattro Audi A7 Sportback Audi e-tron Audi e-tron Sportback Audi Q7 Audi Q8 Audi A8 Audi R8 Coup? Audi R8 Spyder Audi brand Lamborghini Urus Lamborghini Hurac?n Lamborghini Aventador Lamborghini brand Automotive segment

? 60,096

1,072 93,254 93,871 76,838

6,563 133,421

3,600 9,996 2,605 169,577 62,590 6,876 51,411 9,585 8,838 212,336 121,998 41,446 3,209 10,907 27,621

147 52,514 34,716 18,211

1,143 568

1,315,009 3,994 1,751 747 6,492

1,321,501

8,750 55,916

2 69,765 124,211 93,204

8,229 137,172

? 7,352 2,293 180,457 65,506 12,622 59,466 14,543 10,291 235,208 143,652 34,748 7,571 15,296

449 ?

81,225 9,263

19,446 1,156 508

1,398,301 1,033 2,153 906 4,092

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

Audi Hungaria Zrt. Automobili Lamborghini S.p.A. Car engine production

Motorcycle production

Scrambler Naked/Sport Cruiser (Diavel, Monster, Streetfighter) Dual/Hyper (Hypermotard, Multistrada) Sport (SuperSport, Superbike) Ducati brand Motorcycles segment

1?9/2019

1,526,621 735

1,527,356

1?9/2018

1,495,364 927

1,496,291

1?9/2019

8,074

13,056

15,269 7,993

44,392 44,392

1?9/2018

11,962

5

9,354

11,713 12,343 45,372 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.

Read more about the production sites of the individual models on page 91 of the Audi 2018 Annual Report.

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

Audi RS 4 Avant

THIRD QUARTER REPORT 2019

DELIVERIES AND DISTRIBUTION 1)

In the first nine months of 2019, the Audi Group delivered

In the same period we handed 192,437 (207,422) cars of the

1,363,659 (1,612,388) cars to customers worldwide. It

Audi brand over to customers in the North America region. In

should be noted that the prior-year figure still includes

the USA, deliveries fell by ?5.3 percent to 158,471 (167,420)

deliveries of other Volkswagen Group brands by multi-brand

units. The encouraging trend of our full-size models could not

sales companies, which are no longer reported by the Audi

offset the restricted availability of vehicles and the challenging

Group as of January 1, 2019, as management responsibility for competitive situation in the reporting period. In Canada, our

these companies has been transferred to Volkswagen AG,

deliveries were also down.

Wolfsburg.

Our sales figures in the South America region totaled

1,357,102 (1,407,672) vehicles of the Audi brand were

6

delivered to customers. The decline of ?3.6 percent is mainly

11,669 (13,943) Audi models, which was lower than in the prior-year period ? partly due to decreasing deliveries in Brazil.

attributable to weakened market demand. Thus, total market

volume shrank by ?5.0 percent in the same period. Audi was

With 534,607 (542,858) Audi vehicles delivered to customers,

therefore able to keep its market share stable. Furthermore,

we also recorded a slight decrease in volume in the Asia-Pacific

our current product cycle affected delivery figures, as not all

region. By contrast, in China ? our biggest single market ? our

new models were yet available worldwide in the reporting

sales figures rose to 491,040 (483,001) cars, an increase of

period. Of the total Audi models delivered, 446,330 (440,197) 1.7 percent and thus a new record volume for the reporting

units were manufactured locally by FAW-Volkswagen

period.

Automotive Company, Ltd., Changchun (China).

The Lamborghini brand delivered a total of 6,517 (3,554)

In the third quarter of 2019, our delivery figures dropped to

vehicles to customers in the first three quarters of 2019.

452,899 (512,467) vehicles worldwide. It should be noted

Compared with the prior-year period, this was positively

that the prior-year figure still includes deliveries of other

influenced by the market success of the Super SUV

Volkswagen Group brands by multi-brand sales companies,

Lamborghini Urus, which has been available since summer

which are no longer reported by the Audi Group as of

2018. In addition, the Ducati brand recorded a delivery volume January 1, 2019. A total of 450,922 (458,439) Audi brand

of 43,827 (43,948) motorcycles.

models were delivered, including 167,054 (157,613) built

locally by FAW-Volkswagen Automotive Company Ltd.,

In Western Europe, our delivery volume was affected by the

Changchun (China). The Lamborghini brand delivered a total of

restricted availability of model variants at the start of the year

1,964 (1,227) vehicles worldwide between July and

due to the changeover to the WLTP test cycle and by renewal

September 2019, while the Ducati brand delivered

of our product portfolio. As a result, the volume declined to

12,105 (11,659) motorcycles in this period.

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.

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18. 1) The figures for the prior-year period have been marginally adjusted.

THIRD QUARTER REPORT 2019

Car deliveries to customers by model 1) 2)

Motorcycle deliveries to customers 3)

1?9/2019

1?9/2018

1?9/2019

1?9/2018

Audi A1 Audi A1 Sportback Audi Q2 Audi A3 Audi A3 Sportback Audi A3 Sedan Audi A3 Cabriolet Audi Q3 Audi TT Coup? Audi TT Roadster Audi A4 Sedan Audi A4 Avant Audi A4 allroad quattro Audi A5 Sportback Audi A5 Coup? Audi A5 Cabriolet Audi Q5 Audi A6 Sedan Audi A6 Avant Audi A6 allroad quattro Audi A7 Sportback Audi e-tron Audi Q7 Audi Q8 Audi A8 Audi R8 Coup? Audi R8 Spyder Audi brand Lamborghini Urus Lamborghini Hurac?n Lamborghini Aventador Lamborghini brand Other Volkswagen Group brands Automotive segment

153 62,615 98,043

15 113,274

82,267 7,342

130,215 9,143 3,201

178,116 64,654 5,382 57,545 10,545 9,030

219,365 119,455

46,110 2,028

13,574 16,180 61,950 31,296 14,216

951 437 1,357,102 3,896 1,751 870 6,517

40 1,363,659

9,817

Scrambler

9,648

10,733

59,989

Naked/Sport Cruiser (Diavel,

73,493

Monster, Streetfighter)

11,292

10,885

970 123,981

99,439 8,748

138,883

Dual/Hyper (Hypermotard, Multistrada)

Sport (SuperSport, Superbike)

Ducati brand

Motorcycles segment

14,086 8,801

43,827 43,827

11,661 10,669 43,948 43,948

10,934

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

2,997

7

187,545

The Ducati brand delivered 43,827 (43,948) motorcycles to

73,832

customers worldwide in the first three quarters of 2019.

14,317 59,789 16,804 13,251

Ducati increased deliveries in Western Europe in particular, while sales figures on the North American motorcycle market declined.

226,433

138,324

35,731

7,268

14,579

436

72,317

3,099

12,359

1,507

830

1,407,672

270

2,283

1,001

3,554

201,162

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.

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

Audi A5 Sportback

THIRD QUARTER REPORT 2019

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

Models Audi TTS Coup? (product improvement)

Audi TTS Roadster (product improvement)

Main characteristics and new features

> 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

8

Audi e-tron (new model, no predecessor)

Audi R8 Coup? (product improvement)

> 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 Spyder (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 TT RS Coup? (product improvement) Audi TT RS Roadster (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 S6 TDI Sedan (new model) Audi S6 TDI Avant (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 S7 TDI Sportback (new model) Audi SQ8 TDI (new model, no predecessor)

> As an S model, four-door coup? 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

> Sporty top model in the Q series and an accomplished companion for business and leisure > Elegance of a four-dour premium coup? 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

Fuel/power consumption and CO2 emission figures as well as the efficiency classes can be found on page 18.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download