Å kodaAuto ANNUAL REPORT 2006 - Skoda Auto

Škoda Auto Deutschland
2006 was a very successful year for the
Škoda brand in the German market. Škoda
Auto won a number of awards here. For
example, the Škoda Octavia 4x4 won the
Allrad Auto 2006 award, the Škoda Superb
was awarded the Business Diamond, and
the Škoda Octavia Combi took the Red
Dot Design Award as well as the
“Beliebtes Importauto” title (the most
popular imported vehicle).
Škoda Auto Deutschland succeeded in
growing its market share by 0.3 of
a percentage point to 3.0%. The popularity
of the Škoda brand continued to grow:
103,931 vehicles were delivered (an increase
of 13,828 vehicles year-on-year). Thanks to
this large increase, Škoda Auto Deutschland
won 3rd place amongst importers in terms
of the number of vehicles delivered. The
market launch of the new Škoda Roomster in
September 2006 was also very well received
by German customers. The new vehicle
quickly attracted their attention and
3,843 Roomsters were sold in Germany by
the end of 2006.
The market’s growth reflected favourably
on the top and bottom lines of Škoda
Auto Deutschland. Sales revenues in 2006
reached a total of CZK 45.3 billion
(EUR 1,596.8 million), up 23.6% from the
previous year. Profit before income tax
in accordance with IFRS totalled
CZK 268.6 million (EUR 9.5 million),
an increase of 46.2% over 2005.
Škoda Auto Deutschland improved its net
liquidity, meeting and exceeding its goal of
achieving a positive figure. Net liquidity in
2006 was CZK 1.1 billion (EUR 41.2 million),
which is CZK 1.8 billion (EUR 64.1 million)
more than in 2005. This was achieved by
optimising stock levels and applying a strict
policy of selling off – via factoring –
receivables for vehicles sold.
Skoda Auto Polska
Due to a flat market for new vehicles in
Poland, Skoda Auto Polska embarked on
a series of sales and marketing initiatives.
Despite the overall market performance,
28,783 Škoda brand vehicles were sold
and that is more than in the previous year
(an increase of 1,134 vehicles). This
increased Škoda Auto Polska’s market
share by 0.3% to 12.0% and for the
second year in a row it was the best
selling car brand in the Polish market.
Profit before income tax, in accordance
with IFRS, totalled CZK 32.4 million
(PLN 4.5 million), which is CZK 3.8 million
(PLN 0.4 million) less than 2005’s figure.
The main reason was increased expenses
incurred in 2006 to comply with a new
recycling law.
Strict use of factoring to manage
receivables for vehicles sold brought
sharp improvement in positive net
liquidity, which reached CZK 110.5 million
(PLN 15.4 million) at year end 2006.
Compared to 2005, this represents
an increase of CZK 530.5 million
(PLN 71.3 million).
Škoda Auto Slovensko
Heavy competition set the stage for the
development of Škoda's market share,
which was maintained at 36.0% (2005:
36.2%). In 2006, Škoda Auto Slovensko
sold 21,380 vehicles, up 616 vehicles from
the previous year. The Škoda Fabia, Škoda
Octavia and Škoda Superb continued to
be the best selling car models in their
segments in Slovakia.
Despite increased expenditures to
support sales and address the intensified
competition, profit before income tax,
according to IFRS, totalled CZK 24.6 million
(SKK 29.9 million), a year-on-year
increase of CZK 9.7 million
(SKK 11.4 million).
In order to meet the goal of positive net
liquidity in 2006, new optimising
measures were put in place, including
a greater emphasis on managing sales
according to market requirements and
customer needs. This led to optimising of
individual deliveries to dealers and the
overall level of stock. We were also able to
substantially reduce overdue payables.
The implementation of these measures
brought a CZK 395.4 million
(SKK 506.0 million) improvement in net
liquidity compared to 2005 and thus, for
the first time since its establishment,
Škoda Auto Slovensko achieved positive
net liquidity (CZK 185.4 million;
SKK 232.2 million).
Skoda Auto India
2006 was a very successful year for the
Škoda brand in the Indian market. Škoda
Auto Group won a number of prestigious
awards for its products in India during the
year. Especially worthy of mention here is
the Car of the Year 2006 award in the
upper mid-range car category and an
award for the technologically most
advanced vehicle in the market. Both
of these awards were won by the Škoda
Octavia, which in the Indian market is sold
under the name Laura. Škoda brand
vehicles also scored another major
success in the renowned study by
J. D. Power Asia Pacific, which monitors
customers’ satisfaction with passenger
cars. In this study, Škoda Octavia vehicles
won recognition particularly in the IQS
(Initial Quality Study) area.
Since Škoda Auto Group first commenced
operations in India, 37,917 Škoda brand
vehicles have rolled off the Indian
production lines here. In 2006, the Indian
plant manufactured a total of 12,599
vehicles. Indian customers purchased
12,105 vehicles, which is 35.2% more than
in 2005. The plant employed 378 people at
year end 2006 and its production capacity
is around 28,000 vehicles per year.
India is a fast-growing market where the
Škoda brand has successfully established
a significant presence. Škoda cars
command a market share of 26.7% in
their segment (an improvement of 2.0%
over 2005). Additional dealers were
added to the dealer network, bringing the
number of Škoda Auto Group sales
locations in India to 48 at the end of 2006.
2006 profit before income tax totalled
CZK 240.1 million (INR 486.2 million).
Skoda Auto India succeeded in increasing
its net liquidity by CZK 240.7 million
(INR 548.5 million) year-on-year, to
CZK 375.3 million (INR 795.7 million).
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