AUDI AG / Release of an announcement according to Article 37x of the WpHG [the
German Securities Trading Act]
04.11.2013 10:20
Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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ECONOMIC ENVIRONMENT
Growth in the global economy gathered some momentum over the first nine
months of 2013. Many industrial countries in particular enjoyed a slight
upturn in economic activity despite the structural challenges they
continued to face. Thus, the economy in Western Europe likewise showed
initial signs of stabilizing. However, the countries on the region's
southern fringe continued to suffer from negative growth rates. Economic
growth in the United States picked up slightly in the course of the year.
This was helped by consumer spending and the steadily improving labor
market. The business cycle in most emerging countries was robust, even if
economic expansion was somewhat slower than in previous years. China, too,
was affected by this trend but still remained the powerhouse of global
economic growth.
Demand for cars worldwide continued along an upward trajectory in the
period under review. There was nevertheless considerable variation in the
overall development of the passenger car market from region to region. In
Germany, consumer reticence driven by the continuing uncertainty about
Western Europe's future economic direction prompted a 6.0 percent drop in
passenger car sales. New registrations in Western European export markets
continued to fall by 3.3 percent due to the weak economies of a large
number of countries in that region. By contrast, sales of passenger cars
and light commercial vehicles in the United States rose by 8.1 percent; the
main factors behind this growth were the continuing high level of
replacement demand and greater consumer confidence. Demand there reached
its highest level for six years. In South America, demand for cars
flatlined at the previous year's level. On the other hand, there was
dynamic growth in car sales in China, which again served as the main driver
of automobile
demand worldwide with growth of 16.4 percent.
International motorcycle markets in the displacement segment above 500 cc
also showed little consistency in the period under review. Overall demand
in the key markets for the Ducati brand declined by 1.9 percent. Many
export markets in Western Europe experienced a dip in demand due to their
overall economic situation remaining weak, while motorcycle sales in
Germany increased slightly. In the United States and Japan, motorcycle
markets saw a slight improvement in sales thanks to those countries'
positive economic development.
PRODUCTION1)
From January through September 2013, we increased Audi Group production to
a total of 1,203,728 (1,143,256) automobiles. Of this total, 311,044
(253,412) vehicles of the Audi brand were made by the joint venture
FAW-Volkswagen Automotive Company, Ltd. in Changchun (China). In the period
under review a total of 1,202,061 (1,141,659) vehicles of the
1) The prior-year figures for the Motorcycles segment refer to the period
from July through September 2012 following the initial consolidation in
July 2012.
Audi brand and 1,667 (1,597) supercars of the Lamborghini brand were
produced worldwide. In addition, 38,074 (9,357) motor-cycles of the Ducati
brand were built up to and including the third quarter of 2013. The initial
consolidation of the Ducati Group took place in July 2012. In the
equivalent prior-year period from January through September 2012, Ducati
made a total of 37,379 sporty bikes.
Cars
In the first nine months of 2013 we built 441,658 (430,777) vehicles at the
Group headquarters in Ingolstadt. A total of 207,852 (211,618) cars were
produced at the Neckarsulm plant in the period under review.
In the same period, AUDI HUNGARIA MOTOR Kft. manufactured 23,083 (28,303)
vehicles of the TT car line and A3 family at GyÅr (Hungary). 2013, the year
in which this company celebrated its 20th anniversary, saw the start of
volume production of the new A3 Sedan in June. To
accommodate this development, the production plant was expanded over a
period of two years, turning it into a location covering the entire process
chain, complete with press shop, body shop, paint shop and final assembly.
From January through September 2013, AUDI BRUSSELS S.A./N.V. made 92,760
(97,489)
vehicles of the Audi A1 car line in Brussels (Belgium).
The first three quarters also saw 46,561 (42,598) of the Audi Q7 built at
Bratislava (Slovakia) and 79,103 (77,462) of the Audi Q3 produced at
Martorell (Spain), both of these being Volkswagen Group locations.
The joint venture FAW-Volkswagen Automotive Company, Ltd., Changchun
(China), manufactured 311,044 (253,412) A4 L, A6 L, Q3 and Q5 car models in
the period under review.
In total, 6,522 (4,850) parts sets for CKD assembly at Aurangabad (India)
were made at the Ingolstadt, Neckarsulm, Bratislava (Slovakia) and
Martorell (Spain) sites.
CAR PRODUCTION BY MODEL 1)
<pre>
1-9/2013 1-9/2012
Audi A1 30,761 38,173
Audi A1 Sportback 61,999 59,316
Audi A3 25,042 20,152
Audi A3 Sportback 123,783 106,508
Audi A3 Sedan 5,581 55
Audi A3 Cabriolet 2,743 6,916
Audi Q3 112,820 77,521
Audi TT Coupé 11,675 14,231
Audi TT Roadster 3,084 4,100
Audi A4 Sedan 178,432 165,687
Audi A4 Avant 65,113 73,267
Audi A4 allroad quattro 13,521 12,228
Audi A5 Sportback 39,417 42,580
Audi A5 Coupé 23,769 25,765
Audi A5 Cabriolet 14,969 16,227
Audi Q5 173,820 156,378
Audi A6 Sedan 171,969 173,467
Audi A6 Avant 37,147 46,477
Audi A6 allroad quattro 6,176 6,415
Audi A7 Sportback 22,577 23,612
Audi Q7 46,561 42,598
Audi A8 29,158 28,364
Audi R8 Coupé 1,207 903
Audi R8 Spyder 737 719
Total, Audi brand 1,202,061 1,141,659
Lamborghini Gallardo 844 960
Lamborghini Aventador 823 637
Total, Lamborghini brand 1,667 1,597
Total, Automotive segment 1,203,728 1,143,256
</pre>
1) The table includes the vehicles built in China by the joint venture
FAW-Volkswagen Automotive Company, Ltd., Changchun.
During the first nine months of 2013, the Automotive segment built a total
of 1,455,276 (1,476,301) engines.
CAR ENGINE PRODUCTION
<pre>
1-9/2013 1-9/2012
Automotive segment 1,455,276 1,476,301
AUDI HUNGARIA MOTOR Kft. 1,454,471 1,475,631
Automobili Lamborghini S.p.A. 805 670
</pre>
Motorcycles
Ducati built a total of 38,074 (9,357) motorcycles worldwide between
January and September 2013. The prior-year figure includes only the
motorcycles manufactured since the acquisition of the Ducati Group in July
2012. 34,322 (8,743) sporty bikes were built at the company head-quarters
in Bologna (Italy) in the first three quarters. Ducati produced 3,209 (614)
of the Diavel, Hypermotard, Monster and Multistrada models at the Amphur
Pluakdaeng plant (Thailand).
543 (-) motorcycles of the Diavel and Monster lines were built at Manaus
(Brazil) on behalf of DUCATI MOTOR HOLDING S.P.A., Bologna (Italy).
MOTORCYCLE PRODUCTION
<pre>
1-9/2013 7-9/2012
Naked/Sport Cruiser (Diavel, Monster, Streetfighter) 18,512 4,772
Dual/Hyper (Hypermotard, Multistrada) 14,231 955
Sport (Superbike) 5,331 3,630
Total, Ducati brand 38,074 9,357
Total, Motorcycles segment 38,074 9,357
</pre>
DELIVERIES1)
The Audi Group delivered a total of 1,314,112 (1,234,802) automobiles
worldwide in the first nine months of 2013. This figure includes 1,180,748
(1,097,507) vehicles of the core brand Audi, which increased its deliveries
to customers by 7.6 percent. In total, 1,688 (1,541) supercars of the
Lamborghini brand were handed over to their new owners, while 131,676
(135,754) vehicles of other Volkswagen Group brands were delivered to
customers. The Ducati brand delivered 36,662 (10,764) motorcycles to
customers worldwide. The prior-year figure includes only the bikes
delivered since the acquisition of the Ducati Group in July 2012.
1) The prior-year figures for the Motorcycles segment refer to the period
from July through September 2012 following the initial consolidation in
July 2012.
Cars
In Germany, declining overall market demand meant the total volume of
deliveries for the Audi brand slipped to 190,607 (198,777) automobiles.
Elsewhere in Western Europe, deliveries of Audi vehicles to customers were
virtually unchanged at 329,670 (331,677) despite lower overall vehicle
deliveries especially in the economically weaker Italian and French
markets. By contrast, the brand with the four rings again made very good
progress in the United Kingdom. It delivered 115,137 (101,593) cars to
customers there from January through September 2013, an increase of 13.3
percent on the prior-year period.
The Audi brand enjoyed positive demand in Central and Eastern Europe, too.
In Russia, the
region's most important sales market, we increased deliveries to customers
by 6.1 percent to 26,982 (25,442) units.
Demand for vehicles of the Audi brand made very healthy progress in the
U.S. market. By the end of September, 114,411 (100,694) Audi vehicles had
been delivered to customers - an
increase of 13.6 percent.
Moreover, we yet again achieved a significant increase in the delivery
volume in the Asia-Pacific region. In total, 422,590 (351,420) automobiles
of the Audi brand were delivered to customers there - 20.3 percent more
than in the prior-year period. This performance was first and foremost down
to substantial growth in demand in China (incl. Hong Kong), where the brand
with the four rings delivered 358,213 (297,060) vehicles to customers, an
increase of 20.6 percent.
DELIVERIES OF CARS TO CUSTOMERS BY MODEL 1)
<pre>
1-9/2013 1-9/2012
Audi A1 30,877 53,399
Audi A1 Sportback 65,187 42,981
Audi A3 28,449 18,761
Audi A3 Sportback 115,675 107,614
Audi A3 Sedan 2,192 -
Audi A3 Cabriolet 4,067 7,281
Audi Q3 105,382 66,480
Audi TT Coupé 11,840 13,330
Audi TT Roadster 3,636 4,132
Audi A4 Sedan 177,876 164,732
Audi A4 Avant 66,933 70,245
Audi A4 allroad quattro 13,657 9,188
Audi A5 Sportback 37,028 42,002
Audi A5 Coupé 23,266 26,736
Audi A5 Cabriolet 15,283 16,717
Audi Q5 174,610 146,726
Audi A6 Sedan 170,434 158,818
Audi A6 Avant 36,558 47,568
Audi A6 allroad quattro 6,525 4,221
Audi A7 Sportback 21,170 25,640
Audi Q7 41,717 40,679
Audi A8 26,339 28,242
Audi R8 Coupé 1,246 1,095
Audi R8 Spyder 801 920
Total, Audi brand 1,180,748 1,097,507
Lamborghini Gallardo 915 902
Lamborghini Aventador 773 639
Total, Lamborghini brand 1,688 1,541
Other Volkswagen Group brands 131,676 135,754
Total, Automotive segment 1,314,112 1,234,802
</pre>
1) The figures for the prior-year period have been marginally adjusted.
Motorcycles
The Ducati brand delivered 36,662 (10,764) motorcycles to customers
worldwide in the period under review. In certain areas of the market, there
was a sharp downturn in demand for motorcycles in the displacement segment
above 500 cc that is relevant for Ducati. Because of the initial
consolidation of the Ducati Group in July 2012, the prior-year figure only
represents the motor-cycles delivered from that date on. In the
corresponding period of last year, a total of 38,080 sporty bikes were
delivered to customers.
The Ducati brand was unable to remain entirely immune to declining demand
in the countries of Western Europe that have been affected by sovereign
debt crises, most notably Italy, France and Spain. Nor was the previous
year's high deliveries total achieved in the United States. On the other
hand, demand for motorcycles of the Ducati brand developed highly
satisfactorily in Asia.
DELIVERIES OF MOTORCYCLES TO CUSTOMERS
<pre>
1-9/2013 7-9/2012
Naked/Sport Cruiser (Diavel, Monster, Streetfighter) 18,558 5,845
Dual/Hyper (Hypermotard, Multistrada) 11,407 2,273
Sport (Superbike) 6,697 2,646
Total, Ducati brand 36,662 10,764
Total, Motorcycles segment 36,662 10,764
</pre>
ADDITIONS TO THE PRODUCT RANGE
From January through September 2013, we maintained our efforts to broaden
the Audi Group product portfolio.
The improved high-performance models of the Audi R8 were introduced onto
markets at the start of the year. The Audi R8 Coupé and R8 Spyder are
available in three different engine versions - the R8 V8, the R8 V10 and
the Coupé additionally as the R8 V10 plus.
The A3 Sportback joined the popular A3 family in February. Like the
three-door version, the five-door A3 Sportback offers a combination of
comparatively low weight and powerful, efficient engines. Its driver
assistance systems and infotainment functions moreover represent the
benchmarks in this segment. The sporty S3 and S3 Sportback models were
launched on the market in the third quarter of 2013. Since September, we
have been offering our customers a first model in the world's biggest
market segment, the compact sedan, in the shape of the new A3 Sedan. Next
year, we will also launch the top model in this car line, the S3 Sedan. In
September, the International Motor Show (IAA) in Frankfurt am Main also saw
us present the new A3 Cabriolet, with its market launch earmarked for the
first quarter of 2014. As well as
having an elegant, versatile design, the compact four-seater offers all the
beneficial features of the A3 family. Extra-sporty performance is provided
by the S3 Cabriolet.
The SQ5 TDI - the Company's first ever diesel-powered S model - has been
available since March this year. The sporty SUV is equipped with a biturbo
3.0 TDI engine and develops 230 kW (313 hp). At the Detroit Motor Show at
the start of 2013, we also showcased the SQ5 with gasoline engine, destined
mainly for the North American and Chinese markets. Its 3.0 TFSI engine
produces 260 kW (354 hp) of power. The high-performance SUV has already
been on sale in North American markets since September.
The new RS 7 Sportback made its debut at the Detroit Motor Show and has
gradually been rolled out on markets since the end of the third quarter.
Its main assets are its impressive driving
dynamics and sporty design. The 4.0 TFSI engine develops 412 kW (560 hp)
and accelerates the sporty five-door coupé from 0 to 100 km/h in only 3.9
seconds.
The new Audi RS 5 Cabriolet has been on sale since April 2013. Drivers of
this high-performance model will appreciate its particularly sporty design
and pronounced driving dynamics. The high-revving 4.2 FSI engine produces
331 kW (450 hp) of power.
In March 2013, the new RS 6 Avant was unveiled at the Geneva Motor Show;
deliveries to our customers commenced in June. Like the RS 7 Sportback, it
is powered by a V8 biturbo.
The Geneva Motor Show also witnessed the debut of the RS Q3, the first RS
model in the Q car line; this new car will go on sale from the end of the
current fiscal year. As a sporty SUV, it combines a high level of everyday
suitability with impressive driving dynamics. Its 2.5 TFSI engine produces
228 kW (310 hp) of power.
Audi provided an outlook of sustainable mobility with the A3 Sportback
g-tron presented at the Geneva Motor Show. The compact five-door model is
equipped with a newly designed 1.4 TFSI engine with an output of 81 kW (110
hp) that can run on natural gas, gasoline and the largely CO2-neutral fuel
Audi e-gas. This fuel has been produced at the new Audi e-gas plant in
Werlte (Emsland) since mid-2013.
In addition, we are working systematically on refining electric drive
systems. For example, the A3 Sportback e-tron with plug-in hybrid
technology that was exhibited at the Geneva and Frankfurt shows achieves a
system output of 150 kW (204 hp) and is capable of a top speed of 222 km/h.
The top speed in the purely electric mode is 130 km/h, and the maximum
electric range is 50 kilometers. On average, the A3 Sportback e-tron emits
just 35 g of CO2/km and uses only 1.5 liters of premium-grade fuel per 100
kilometers. 2014 will see the market introduction of this premium compact
model with plug-in hybrid technology.
Audi also showcased the comprehensively improved Audi A8 at the
International Motor Show (IAA). Numerous details of the Company's flagship
model have been modified to give this systematically
lightweight-construction car a sharper design that incorporates a wide
range of high-end technologies. As well as new assistance systems,
innovative Matrix LED headlights make driving even safer and more
convenient. Furthermore, the engine range has been made even more
fuel-efficient despite increased power outputs. The 3.0 TDI clean diesel
developing 190 kW (258 hp) is its most efficient power unit, with average
consumption of only 5.9 liters of diesel fuel and CO2 emissions of 155
g/km.
Audi also unveiled its showcar - the Audi nanuk quattro concept - at the
2013 International
Motor Show (IAA). The innovative design concept blends the power of a
high-performance sports car with the versatility of a vehicle suitable for
the road, the racetrack or off-road conditions.
To mark the 30th anniversary of the Sport quattro, the Audi Sport quattro
concept showcar also made its debut in Frankfurt am Main. This
high-performance coupé builds on the quattro
tradition by offering 515 kW (700 hp) of system power from its plug-in
hybrid drive, encased in a sportily designed exterior.
To mark the company's 50th anniversary, the Lamborghini brand exhibited the
exclusive Veneno at the Geneva Motor Show early on in the year, a supercar
with a power output of 552 kW (750 hp). The new Aventador LP 700-4 Roadster
- the open-top version of the high-performance Aventador - went on sale
early this year. The new Lamborghini Gallardo LP 570-4 Squadra Corse made
its debut at the International Motor Show (IAA) in September. This new and
most extreme model of the Gallardo car line puts 419 kW (570 hp) of power
onto the road.
In the Motorcycles segment, the Ducati brand likewise introduced a large
number of new models, such as the high-performance, versatile new models
Diavel, Diavel Strada and Diavel Dark. The main attributes of the new Hyper
series, featuring the Hypermotard, Hypermotard SP and Hyperstrada, are
sporty handling characteristics and exceptional versatility. For example,
the new Hyperstrada exhibits an array of touring attributes as well as
particularly rider-friendly ergonomics that make this bike more comfortable
on long journeys, too. The new Multistrada 1200 S Granturismo has the
distinct character of a touring bike. At the other end of the spectrum, the
new 1199 Panigale R offers outstanding performance and superlative
technology. Its two-cylinder engine produces 143 kW (195 hp) with a
ready-for-road weight of only 189 kg. In September 2013, Ducati furthermore
launched the new Superbike 899 Panigale, adding an extremely maneuverable
and light midsize model to the Superbike family.
FINANCIAL PERFORMANCE1)
The revenue of the Audi Group in the first three quarters of 2013 was
slightly down on the prior-year period's high figure at EUR 36,965 (37,667)
million. While the Motorcycles segment generated revenue of EUR 479 (98)
million, the Automotive segment achieved a revenue total of EUR 36,489
(37,570) million. The main positive effects came from high demand for the
models of the new A3 family, along with dynamic growth in Asia and North
America. At the same time, however, a shift in the mix - principally due to
falling demand in Western European countries affected by the sovereign debt
crises - as well as exchange effects hampered the revenue performance,
which was 1.9 percent down on the high prior-year figure as of the end of
September.
The Audi Group posted an operating profit of EUR 3,743 (4,197) million for
the first nine months of 2013 2). This represented an operating return on
sales of 10.1 (11.1) percent. In the Automotive segment, the operating
profit was reduced to EUR 3,693 (4,201) million mainly as a result of the
continuing high level of advance payments for new products and technologies
as well as for the expansion of the international production network. The
segment's operating return on sales consequently came to 10.1 (11.2)
percent. The Motorcycles segment contributed EUR 50 (-4) million to the
Audi Group's operating profit; seasonal factors meant the operating return
on sales reached 10.5 (-4.4) percent. The substantial rise compared with
the prior-year figure can be explained by the inclusion of the Ducati Group
only from the date of
acquisition in July 2012.
Before tax, the Audi Group earned EUR 4,270 (4,764) million in the first
nine months of 2013, representing a return on sales before tax of 11.6
(12.6) percent. The after-tax figure of consolidated net profit came to EUR
3,132 (3,421) million.
Our business performance was again influenced by the above factors in the
third quarter. The Audi Group posted revenue amounting to EUR 11,731
(12,645) million. This total is made up of EUR 11,630 (12,548) million for
the Automotive segment and EUR 101 (98) million for the Motorcycles
segment.
The Audi Group's operating profit for the third quarter came to EUR 1,100
(1,325) million2), while the operating return on sales was 9.4 (10.5)
percent. The operating profit for the Automotive segment was EUR 1,106
(1,329) million. Meanwhile, the Motorcycles segment posted an operating
profit of EUR -6 (-4) million for the third quarter, when seasonal factors
are especially marked.
Before tax, the Audi Group generated profit of EUR 1,296 (1,589) million in
the third quarter, representing a return on sales before tax of 11.0 (12.6)
percent. Profit taking account of income tax expense was EUR 954 (1,170)
million.
The group of consolidated companies has grown since December 31, 2012 with
the establishment of AUDI MÃXICO S.A. de C.V., San José Chiapa (Mexico) by
AUDI AG.
1) The prior-year figures for the Motorcycles segment refer to the period
from July through September 2012 following the initial consolidation in
July 2012.
2) The prior-year figure has been adjusted to reflect the amended IAS 19.
EMPLOYEES
The Audi Group employed an average of 71,123 (66,705) employees over the
period up until the end of September. AUDI AG plans to recruit a total of
more than 1,500 new employees in fiscal 2013. In addition, more than 700
young people began their training in 23 different careers at the two Audi
locations Ingolstadt and Neckarsulm in September.
RISK REPORT
The Group-wide risk management system is a matter of great importance for
the Audi Group. Ongoing analyses and ratings help to identify risks early
on and prepare solutions to minimize their impact or avoid them altogether
by anticipating them.
The Audi Group is exposed to industry-typical risks that are described in
detail in the 2012 Annual Report and remain valid.
OUTLOOK
The Audi Group expects global economic growth to continue for the remainder
of the year despite continuing economic uncertainty. Most industrial
nations are only likely to achieve modest rates of expansion due to the
structural challenges they face; emerging economies will deliver the
highest growth.
For the year as a whole, we expect to see a positive development in the
worldwide demand for cars. Alongside North America, the Asia-Pacific region
in particular should emerge as the main driver of global growth in sales.
New registrations in South America should match the previous year's level.
Western Europe as well as Central and Eastern Europe are the only regions
where we expect to see a contraction in the overall market.
Regarding the motorcycle markets, we anticipate a slight drop in overall
market demand for 2013 in the displacement segment above 500 cc in which
the Ducati brand operates.
The Audi Group is planning to increase deliveries by the Audi brand to more
than 1.5 million automobiles in 2013 as a whole. Demand is being stimulated
in particular by the introduction of the new A3 Sportback and also the new
A3 Sedan, which was added to the successful A3 car line in September.
Through our extensive, attractive product portfolio and the introduction of
new models, we aim to increase our market shares and thus build on our
already strong
competitive position. We expect to see the Ducati brand increase its
deliveries of motorcycles up until the end of the current fiscal year of
2013.
With the increased volume of deliveries, the Audi Group is on track to
generate higher revenue for the whole of 2013 than in the previous year.
Despite the significant advance payments for the expansion of the
international production network as well as increased spending on
products and technologies - mainly to meet the tougher statutory CO2 limits
worldwide - we are planning an operating return on sales at the upper end
of the strategic target corridor of eight to ten percent.
EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
There were no reportable events of material significance after September
30, 2013.
DISCLAIMER
This Third Quarter Report contains forward-looking statements relating to
anticipated future developments. These statements are based upon current
assessments and are by their very nature subject to risks and
uncertainties. Actual outcomes may differ from those predicted in these
statements.
04.11.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: AUDI AG
-
85045 Ingolstadt
Germany
Internet: www.audi.de
End of Announcement DGAP News-Service
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DGAP-IRE: AUDI AG: Third Quarter Report 2013
| Source: EQS Group AG