On track: Audi Group achieves breakeven thanks to strong third quarter

“In an economically difficult environment, we succeeded in lifting our operating business in the third quarter close to the level of recent years again. Audi is thus proving its resilience in the corona crisis and is maintaining its financial scope to continue investing in future fields such as electrification and digitalization,” says Arno Antlitz, Member of the Audi Board of Management for Finance and Legal Affairs.

Thanks to a sharp rise in demand since the middle of the year, the Audi brand’s cumulative deliveries of 1,187,190 vehicles in the first nine months (1,357,102) developed significantly better than the overall market, which contracted by 20.2 percent. Deliveries in China actually rose by 4.4 percent. Against the backdrop of the economic recovery in key markets, the company delivered approximately 30,000 or 6.4 percent more vehicles in the third quarter than in the prior-year period. Demand for Audi models in China rose significantly by 17.8 percent in the third quarter; deliveries in Europe remained at the previous year’s level, while sales in the US market rose from a still-low level.

Due to the negative impact of the corona pandemic on markets and sales, revenue amounted to €33,264 million in the first nine months of the year (€41,332 million). Positive factors were the good sales performance of individual models such as the all-electric Audi e-tron and, against the backdrop of strong business in China, higher revenue from the supply of parts kits for local production. The positive market trend in the third quarter is also reflected by a 1.7 percent increase in revenue compared with the same quarter of the previous year to €12,788 million (€12,571 million).

With an operating profit of €114 million for the first nine months (€3,239 million), the Audi Group clearly exceeded the breakeven point following the pandemic-related losses in the first half of the year. The operating return on sales was 0.3 percent (7.8 percent). Adjusted for special items of minus €108 million related to the diesel issue, operating profit amounted to €221 million and the adjusted operating return on sales was 0.7 percent. In the successful third quarter, the company posted an operating profit of €864 million (€938 million) and an operating return on sales of 6.8 percent (7.5 percent).

The Audi Group’s financial result increased significantly to €1,089 million (€429 million) due to the sale of HERE shares to new partners at THERE Holding B.V. Rijwijk (Netherlands) and the disposal of a subsidiary within the Volkswagen Group. Financial result also reflects higher net interest income and the strong business in China. Profit before taxes of €1,117 million in the third quarter was above the previous year’s figure (€1,088 million) and was €1,202 million in the first nine months (€3,668 million).

Despite lower earnings due to the pandemic, the Audi Group generated a net cash flow of €3,783 million, above the high level of the prior-year period (€3,271 million). In addition to the targeted reduction of inventories, particularly in the second quarter, and cash inflows from the sale of investments, strict cost discipline and significant savings on non-vehicle-related investments also contributed to the net cash flow. Antlitz: “We take future-oriented decisions on where to invest and what to leave out. We are not cutting back at all on strategically important projects, on our product portfolio and especially on our electric roadmap.”

The Audi Group is now cautiously optimistic about the rest of the year, but it is hardly possible to estimate the impact of the second wave of the corona pandemic reliably. Subject to this development, the company expects the positive delivery trend to continue in the fourth quarter. Audi deliveries and Audi Group revenue in the full year are likely to be significantly below the respective prior-year figures. Operating profit is expected to be substantially lower than in 2019, but clearly positive. The Audi Group is now forecasting a net cash flow at the previous year’s level.

Link to video statement CFO Arno Antlitz

Link to Third Quarter Report, January 1 to September 30, 2020

Selected key figures for the Audi Group

Jan – Sep 2020

Jan – Sep. 2019

Car deliveries Audi brand

1,187,190

1,357,102

Revenue Audi Group in EUR million

33,264

41,332

Operating profit Audi Group in EUR million

114

3,239

Operating return on sales Audi Group in percent

0.3

7.8

Operating profit before special items
Audi Group in EUR million

221

3,239

Operating return on sales before special items
Audi Group in percent

0.7

7.8

Net cash flow Audi Group in EUR million

3,783

3,271

Audi brand deliveries to customers

Jan – Sep 2020

Jan – Sep 2019

Difference
year on year

World

1,187,190

1,357,102

–12.5 %

Europe

440,832

595,132

–25.9 %

– Germany

153,196

215,515

–28.9 %

– UK

80,477

113,336

–29.0 %

– France

30,478

42,346

–28.0 %

– Italy

35,053

47,811

–26.7 %

– Spain

27,032

39,589

–31.7 %

USA

124,103

158,471

–21.7 %

Mexico

6,451

8,895

–27.5 %

Brazil

4,482

5,796

–22.7 %

Mainland China and Hong Kong

512,891

491,040

+4.4 %

First digital MQ! Innovation Summit in 2020

“Audi and the entire automotive sector are currently undergoing the greatest transformation in the history of our industry. The MQ! Innovation Summit is the right place for discussing ideas for the future of mobility,” says Markus Duesmann, Chairman of the Board of Management of AUDI AG. He went on to say that maintaining an exchange with international thought leaders was essential for questioning the status quo, being ready for the challenges of the transformation, and generating ideas for the mobility of the future.

The following keynote speakers will be joining us for the first virtual MQ! Innovation Summit, which offers a programme of 25 hours: Tristan Harris, co-founder of the Center for Humane Technology, Anna Nixon, robotics expert and co-founder of STEM4Girls (STEM = science, technology, engineering, math), and Prof. Sebastian Thrun, co-founder of the Udacity online academy.

The participants of the summit will address the topics from the keynotes more in depth in the different workspace sessions on the basis of concrete questions. How can the customers’ digital environment be integrated into the vehicle? How can the user experience be optimized through the use of artificial intelligence? How can functions on demand make mobility as flexible as the customers’ lives? Which new business models arise from the changes taking place in the world of mobility?

The MQ! night program offers sessions for gaming enthusiasts and beginners, starting with a digital meet & greet with professionals from the Fokus Clan eSport team and a talk with Microsoftabout the launch of the Xbox Series X/S. Further topics include imparting learning content on gamification and game storytelling.

More content can be found at www.the-mobility-quotient.com.

As part of the MQ! Innovation Summit, thought leaders from the worlds of business and science will discuss whether there is a mobility quotient (MQ) similar to the IQ. The participants have been dealing with this key question ever since the first MQ! Innovation Summit, which was held in 2017 and took place at the international level in Beijing for the first time last year.

Interested parties can visit www.the-mobility-quotient.com to get information on the detailed program and register for the MQ!. More information on the program is also available on Facebook under “The Mobility Quotient”.

Note for editors:
Please visit www.the-mobility-quotient.com to reserve your spot for the MQ! Innovation Summit.

Audi- Future is an attitude

Audi- Future is an attitude

We all look at the same world. But we all look at it in a different way.
Sometimes, you need to change your perspective.
At Audi, we reimagine mobility.
We look for inspiration and visions in the everyday.
We envision the greater good, we live progress.
For a positive and progressive tomorrow.

Get to know our vision on https://www.progress.audi/progress/en.html

#Audi #FutureIsAnAttitude

Lucas di Grassi and René Rast compete for Audi in the FIA Formula E World Championship

“With his impressive performances in Berlin, René proved that he feels comfortable in Formula E and at the same time is also fast and successful. He has absolutely earned his place in our Formula E team,” says Head of Audi Motorsport Dieter Gass. At the finale in Berlin in August, Rast scored a point in the first of six races and made it onto the podium a few days later. As a rookie in the final races, he scored a total of 29 points and finished 15th in the drivers’ championship, which was ahead of many drivers who had contested the entire season.

“The races in Berlin have definitely whetted my appetite for more, so I’m now looking forward to my first full season in Formula E,” says Rast. “Starting in this world championship for Audi is the next exciting chapter in my career and I am really looking forward to it.” Rast has been a member of the Audi driver family since 2009. In addition to victories in the 24-hour races at Daytona, Spa and the Nürburgring, he has won the ADAC GT Masters title and has twice been crowned as the DTM champion. Rast is the leader of the standings ahead of the last two races of the current DTM season at Hockenheim. 

Alongside René Rast, Lucas di Grassi is starting his seventh Formula E season in the Audi Sport ABT Schaeffler team. After 69 races, he leads the all-time list of best drivers with 32 podiums and 796 points. Among his ten victories is also the triumph at the first Formula E race in history, which was held in Beijing in September 2014. “I have experienced everything in these six years: great successes, defeats, insane emotions. And the best is yet to come, because the start-up from back then is now turning into an FIA World Championship,” says di Grassi, who recently ended his first season without finishing in the top three of the driver’s championship standings. “Together with Audi and René, I will give everything in 2021 to have a say in the fight for the world championship title.”

“For me, it was extremely important to have two drivers who push each other to peak performance,” says Dieter Gass. “With Lucas and René, we have succeeded in doing this brilliantly. Lucas is the most successful driver in the field and extremely hungry to win his second title. René has already left an impressive mark in Berlin. We are enjoying his determination year after year in the DTM. I am already looking forward to experiencing it in Formula E.”

The start of the seventh Formula E season is scheduled for mid-January 2021 in Santiago (Chile), the German home race in Berlin is scheduled for June 19. A total of twelve events will be on the world championship calendar for Lucas di Grassi, René Rast and the Audi e-tron FE07.

– End –

Video: Lucas di Grassi and Audi continue their journey

First victory of the Audi R8 LMS in Super GT

Audi R8 LMS GT2

High level of attention: Audi China included the Audi R8 LMS GT2 in a market launch of RS and S models, which was also accompanied by the actress Dilireba, who is well-known in China. 30 million viewers followed the presentation in the social media, generating 200 million impressions. The Audi R8 LMS GT2 is currently on tour in China. Future customers had the chance to test the racing car for the first time in Shanghai with the Absolute Racing team. In the last week of October, Team TSRT will take the opportunity to show customers the most powerful racing car from the Audi Sport customer racing model range in Zhuhai.

Audi R8 LMS GT4

Long distance victory in Magny-Cours: Team Milan Compétition celebrated a class win at the fifth round of the Trophée Tourisme Endurance at Magny-Cours after four hours of racing. In the mixed sports and touring car series, Pierre Arraou and Denis Gibaud in the Audi R8 LMS GT4 won the T5 group by 30 seconds.

Audi RS 3 LMS (TCR)

Leading the standings for the finale: Team Comtoyou Racing maintained its leading position in two out of three rankings at the home game in TCR Europe. After the two races at Spa, Jean-Michel Baert’s team, which enters three Audi RS 3 LMS cars, leads the team standings before the finale in Jarama with a 94-point advantage. In the Yokohama Trophy, Nicolas Baert is seven points ahead of his teammate Sami Taoufik. In the overall championship standings, Audi driver Mehdi Bennani is second out of 29 drivers, 26 points behind the championship leader.

Trophy in Hungary: In the final round of the Eset V4 Cup, Audi customer team Horňák Aditis achieved a podium finish in its class. In the one-hour race at the Hungaroring, Radim Adámek and Miro Horňák in their Audi RS 3 LMS finished third.

Second place in Oschersleben: Max Frederik Gruhn achieved another podium result in German club racing with his Audi RS 3 LMS. After the junior had been on the podium several times as a regular participant in the Spezial Tourenwagen Trophy, he started in the third round of the Northern German ADAC Börde Touring Car Cup. After two hours of racing, he took second place in his class.

Coming up next week

29/10–01/11 Barcelona (E), rounds 9 and 10, GT Cup Open Europe

30/10–01/11 Lausitzring (D), rounds 11 and 12, ADAC GT Masters

30/10–01/11 Lausitzring (D), rounds 9 and 10, ADAC GT4 Germany

30/10–01/11 Laguna Seca (USA), round 9, IMSA Michelin Pilot Challenge

30/10–01/11 Laguna Seca (USA), round 10, IMSA WeatherTech SportsCar Championship

30/10–01/11 Buriram (THA), rounds 1 and 2, Thailand Super Series

31/10–01/11 Aragón (E), rounds 9 and 10, FIA WTCR

31/10–01/11 Okayama (J), round 3, Super Taikyu Series

– End –