Key performance indicators, Audi Group
January until September 2020
Deliveries Audi brand
billion euros before special items
Operating return on sales
before special items
Net cash flow
Download Quarterly Report Q3/2020
10/30/2020 | Quarterly Report Q3/2020
21 pages, EN
Multi-year comparison of the key performance indicators of the Audi Group
|Deliveries to customers of the Audi brand [¹] (cars)||1,878,105||1,812,485||1,845,573|
|Revenue (EUR million)||59,789||59,248||55,680|
|Operating profit (EUR million)||
|Operating return on sales (percent)||
|Return on investment (ROI) (percent)||
|Net cash flow [³] (EUR million)||4,312||2,141||3,160|
|Research and development ratio (percent)||6.4||7.1||7.9|
|Ratio of capex [⁴] (percent)||6.5||5.9||4.9|
[¹] Including delivered vehicles built locally by the associated company FAW-Volkswagen Automotive Company, Ltd., Changchun (China)
[²] Taking into account special items, in particular in connection with the diesel issue
[³] The figure has been adjusted to reflect the amended counting method.
[⁴] Investments in property, plant and equipment, investment property and other intangible assets according to cash flow statement in relation to revenue
Download 10-year overview
03/29/2020 | 10-year overview
2 pages, EN
The non-financial indicator of deliveries to customers reflects the number of new vehicles of the Audi brand handed over to customers.
|Deliveries of the Audi brand [¹]||Compared with the prior-year level||Deliveries of the Audi brand, accumulated YTD [¹]||Accumulated compared with the prior-year level|
[¹] rounded-off figures
Anticipated development in the key performance indicators of the Audi Group (2020 fiscal year)
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, Audi is currently anticipating the following key performance indicators for the 2020 fiscal year:
|Key performance indicators||Forecast 2020|
|Deliveries to customers of the Audi brand||Adjustment of the forecast: In view of the effects of the coronavirus pandemic, we currently expect that deliveries of Audi brand cars to customers will be significantly lower than last year.|
|Revenue||Adjustment of the forecast: In view of the effects of the coronavirus pandemic, we currently expect that the revenue of the Audi Group will be significantly lower than last year.|
|Operating result||Adjustment of the forecast: At present, we currently also expect the Audi Group's operating result to be substantially lower than the prior-year level, but still clearly positive. In addition to the negative market trend, we assume negative currency and raw material valuation effects for Audi in 2020 as a whole, mainly because of the coronavirus pandemic.|
|Return on investment (ROI)||For the 2020 fiscal year, we forecast that the Audi Group’s return on investment (ROI) will decline year-on-year and that it will also be below our defined minimum required rate of return on invested capital of 9 percent. The reduction is principally attributable to the forecast drop in operating profit.|
|Net cash flow||Adjustment of the forecast: At present, we expect net cash flow for the 2020 fiscal year to remain at the prior-year level, despite the coronavirus pandemic.|
|Research and development ratio||Adjustment of the forecast: Although revenue will be considerably lower than in the prior year, we currently assume that in the 2020 fiscal year the research and development ratio will be below the prior-year level. This is mainly due to lower development costs resulting from pooling software development within the Volkswagen Group in the Car.Software organization.|
|Ratio of capex||Adjustment of the forecast: In connection with the coronavirus pandemic, we are reviewing product-unrelated investments, in particular. Although revenue development is currently expected to be negative, we forecast that the ratio of capex will be significantly below the prior-year level.|
Key performance indicators of the Audi Group in a nutshell
The basis for the management of the Audi Group is a value-oriented corporate management approach in combination with the following key performance indicators, which are important drivers of our corporate development and support the goals of our strategy.
The non-financial indicator of deliveries to customers reflects the number of new vehicles of the Audi brand handed over to customers. This performance indicator reflects demand from customers for our products and reveals our competitive and image position in the various markets worldwide. Strong demand for our products has a major impact on production, and consequently also on the capacity utilization of our sites and the deployment of our workforce. In addition, a continuing high level of vehicle deliveries reflects high customer satisfaction.
The financial key performance indicators include Audi Group revenue, which is a financial reflection of our market success.
Another key performance indicator is the operating result of the Audi Group. This key figure represents the economic performance of our core business as well as the economic performance of our fundamental operational activity, and is defined as follows:
– Cost of goods sold
– Distribution costs
– Administrative expenses
+ Other operating income
– Other operating expenses
= Operating result
Our financial key performance indicators also include the operating return on sales of the Audi Group:
Operating return on sales = Operating result / Revenue
A further key performance indicator is return on investment (ROI). This reflects how effective our business activities are, by considering the return achieved on the capital employed over a given period. Return on investment already takes account of CO₂ compliance measures and can therefore also be understood as return on investment after CO₂.
Return on investment (ROI) = Operating profit after tax / Average invested assets
Net cash flow, which serves as a benchmark of the Audi Group’s level of self-financing, is calculated as follows:
Cash flow from operating activities
– Investing activities attributable to operating activities
= Net cash flow
The research and development ratio expresses Audi’s innovative strength and also ensures that it maintains competitive cost structures.
Research and development ratio = Research and development activities / Revenue
The ratio of capex is another indicator of the Audi Group’s competitiveness.
Ratio of capex = Capex according to the cash flow statement / Revenue
Capex includes investments in property, plant and equipment, investment property and other intangible assets according to the cash flow statement. Here, capital investment in essence comprises financial resources for modernizing and expanding our range of products and services, for optimizing our capacities and for improving the Audi Group’s production processes. Investment decisions are requested by the specialist areas, then scrutinized and prioritized by Investment Controlling and the “Investment Group” corporate committee. Major decisions affecting investment policy are also approved by the Company’s Supervisory Board.
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