Å kodaAuto ANNUAL REPORT 2003 - Skoda Auto

Financial OutlookIn 2004, the Company is notexpecting any significant rise in salesvolumes either at home or abroad.The negative impacts of cost outlaysin previous years, relating to capitalinvestment activity and the preparationof new projects (the new Octaviavehicle in particular) will be offset byother optimisation measures. ForŠkoda Auto this will mean optimisingthe dealer network and implementingall the terms of the Block ExemptionRegulation (BER), as well as makingchanges to importer organisations –all of which must be done whilesimultaneously reflecting theconditions ensuing from priceharmonisation. In subsequent years,we expect to see an improvement inour financial performance asautomotive markets recover.Despite the increased depreciationcharge resulting from the launchof the new Octavia, Škoda aims tomatch the previous year’s earningsresult. In 2005, in accordance withstatutory requirements, we expecta change in reporting standards toInternational Financial ReportingStandards (IFRS, previously IAS).Marketing StrategyŠkoda Auto’s principal marketingobjective for 2004 is to successfullylaunch the second generation of thepopular Škoda Octavia, whichwill be premiered at the Genevamotor show in March 2004.Commencement of sales inindividual markets will followgradually starting from the summerof 2004.Other equally important marketingobjectives include implementingthe Company strategy based on thenew brand values, which will helpemotionalise the brand and give ita sharper profile in internationalmarkets.Goals in Human ResourcesŠkoda Auto continues to maintaina high level of employment. In 2004,special emphasis will be placed onemployee health and education.The goal is to reach a 97% healthrate. As part of our capitalinvestment programme, next yearwill see upgrades in all areasof Company education.51