Audi Group First Half-Year: Operating Profit at All-Time High

“Our financial performance in the first six months of 2022 shows just how strong and profitable our brand group is. Despite the challenging economic and geopolitical environment, we were able to increase revenue and returns significantly,” says Markus Duesmann, Chairman of the Board of Management of AUDI AG. “At the same time, the current situation in the world makes it clear that economies and society need to move away from fossil fuels even quicker. Expanding renewable energies and switching to e-mobility are important steps in this direction. That’s why we’re on the right track with our strategic focus on e-mobility and carbon-neutral production.”

Significant Growth in Deliveries of Electric Vehicles and Luxury Brands

Against the backdrop of the difficult provide state of affairs, the Premium model group delivered 797,587 vehicles to prospects within the first six months (2021: 986,567). Compared to report deliveries within the first half of 2021, deliveries of Audi model cars fell by 20% to 785,099 (2021: 981,681). Demand remained robust regardless of the continued semiconductor disaster and COVID-19-related lockdowns in China.

However, Ducati delivered 33,265 (2021: 34,515) bikes. The decline of three.6% in comparison with the robust earlier yr displays semiconductor availability. With 5,090 (2021: 4,852) automobiles delivered, Lamborghini recorded a rise of 4.9%, whereas the British model Bentley – the most recent member of the model group – offered 7,398 (2021: 7,199)* automobiles.

Audi Continues to Implement its Electrification Strategy

The Audi model elevated the variety of all-electric automobiles delivered to 50,033 (2021: 32,775) – a rise of 52.7% over the earlier yr. The Audi e-tron remained notably standard with prospects however the Audi This autumn e-tron recorded the very best development. Against this backdrop, the share of all-electric automobiles delivered by the model group elevated to six.3%.

With the profitable rollout of the Audi charging hub, Audi is showcasing an answer for quick and uncomplicated electrical automobile charging in city areas.The suggestions from prospects on the launch of the pilot website in Nuremberg is extraordinarily optimistic, with a hub in Salzburg and different areas to comply with in the midst of 2022,” says Hildegard Wortmann, Member of the Board of Management for Sales and Marketing. Three extra websites in German metropolises will assist meet the elevated charging calls for in city areas beginning in 2023. Moreover, Audi is planning to open much more websites in German cities by mid-2024. Another milestone within the electrification technique was the cornerstone laid for the smart factory for electric models at the Changchun site at the top of June. Following completion at the top of 2024, fashions primarily based on Premium Platform Electric (PPE) shall be rolled off the road for the Chinese market through sustainable and digitally linked manufacturing. The 150-hectare plant could have an annual manufacturing capability of greater than 150,000 automobiles.

Revenues Increased

In the primary six months of the yr, the Audi Group generated revenues of €29,869 (2021: 29,212) million. Despite declining gross sales figures, the model group was in a position to enhance its income by two %. This development was primarily as a result of first consolidation of the luxurious model Bentley since January 1,2022. The Group succeeded in additional bettering its already robust value place because of the excessive demand for its enticing vary of fashions. Measured in opposition to the Audi Group’s whole income, the share of EU-taxonomy-compliant income elevated to 12.3% within the first half of 2022. This manner, the corporate underlines the significance of the ESG sustainability standards anchored in its “Vorsprung 2030” technique for all firm and product selections.

Operating Margin Significantly Exceeds the Strategic Target

For the primary half of 2022, the Audi Group recorded a brand new excessive of €4,933 (2021: 3,113) million in working revenue, a rise of 58.5%. Operating margins climbed to 16.5% (2021:10.7%). In addition to the nice value place and robust working efficiency of the Lamborghini, Bentley, and Ducati manufacturers, the working revenue consists of optimistic results from commodity hedges totaling €0.4 billion. Following a big tailwind throughout the first quarter (€1,2 billion), the influence has eroded considerably.

“The significant increase in the operating profit and the operating return on sales in the first half of 2022 way above the strategically defined target corridor of 9 to 11% shows that we have mastered the turbulence well and systematically seized the opportunities at the same time,” says Jürgen Rittersberger, Member of the Board of Management for Finance and Legal Affairs of AUDI AG.

Strong Operating Performance for Lamborghini, Bentley, and Ducati

The Lamborghini model elevated its gross sales within the first half of the yr by 30.6% to €1,332 (2021: 1,020) million. The model’s working revenue elevated by 69.3% to €425 (2021: 251) million, with a margin of 31.9% (2021: 24.6%). Bentley achieved revenues of €1,707 (2021:1,324)* million whereas working revenue elevated to €398 (2021: 178)* million to a brand new report excessive. The margin was 23.3% (2021: 13.4%)*. A robust value place offset Ducati’s declining supply figures. The motorbike model elevated its income by 5.4% to €542 (2021: 514) million, producing an working revenue of €68 (2021: 59) million – similar to an working margin of 12.6% (2021: 11.5%).

Financial Result and Net Cash Flow

The monetary consequence within the yr’s first half was €754 (2021: 762) million. This consequence consists of the lion’s share of the business in China, which amounted to €431 (2021: 565) million, decrease than the earlier yr. The decline is a consequence of the COVID-19 lockdowns in China within the second quarter. Earnings after taxes soared to €4,390 (2021: 3,386) million – a rise of 29.6%.

Compared to the very excessive determine within the earlier yr’s first half, web money circulation normalized to €2,593 million within the first six months of 2022 (2021: 5,512 million). Among different issues, this is because of elevated inventories attributable to disruptions to logistics and provide chains, particularly by COVID-19 lockdowns in China and insufficient semiconductor availability. Additionally, investments, for instance, within the new manufacturing website at Audi’s FAW NEV Company in Changchun and the switch of stakes throughout the Volkswagen Group lowered Audi’s web money circulation.

Despite the Challenges: Forecast for Deliveries, Revenue, and Margin Confirmed

The Audi Group’s forecast consists of the at the moment foreseeable short-term penalties of the struggle in Ukraine, the continued semiconductor disaster, and the COVID-19 lockdowns in China within the first half of the yr. The different results of the geopolitical state of affairs and the gasoline scarcity on the worldwide economy can’t be predicted with enough certainty.

The model group expects deliveries of between 1.8 and 1.9 million automobiles and revenues of between €62 and €65 billion for the total yr 2022. The working margin is forecast to be between 9 and 11%. Net money circulation is anticipated to succeed in between €4.5 and €5.5 billion. Audi anticipates a CapEx ratio of between 4 and 5 %. Due to increased upfront expenditure on future applied sciences, the proportion of analysis and improvement prices is now anticipated to be barely above the 6 to 7% hall.

> Quarterly Update and Fact Pack for the primary half of 2022

> Assessment from Jürgen Rittersberger, Member of the Board of Management for Finance and Legal Affairs of AUDI AG, as of the primary half of 2022.