Annual Financial Statements Of AUDI AG

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conditions to suit an employee’s age, models for the individual’s working life and special part-time arrangements. They also include in-house preventive health care programs and strengthening employee awareness about taking responsibility for their own financial future. Information and IT risks A key success factor behind ongoing, sustainable productivity advances is efficient, cost-effective processes and information technologies that meet the business requirements of AUDI AG. Moreover, the ready availability of data and information flows across all locations is of growing importance in keeping procedures throughout the Company swift and efficient. At the same time the growing prevalence of electronic networks does, however, harbor potential information and IT risks, which could have a lasting impact on financial performance. The principal risks are the failure of important IT systems within the value chain, unauthorized access to the system, and the creation of heterogeneous system landscapes. These risks are largely mitigated through stable, highly available IT infrastructures. Furthermore, Company-wide security standards play a major role in assuring high continuity in internal processes and protect the Company against external intervention. Financial risks AUDI AG is exposed to financial risks through its business activities. These comprise market price risks such as from interest rates and raw material prices, as well as issuer risks and liquidity risks. As a result of the Company’s highly international nature, foreign exchange risks relating in particular to the U.S. dollar, the pound sterling and the Japanese yen are of special relevance. Further information on the hedging policy and risk management in the area of financial risks, in particular relating to the use of derivative financial instruments in hedging transactions, is provided in the Notes in “Additional disclosures” under Section 34 “Management of financial risks,” and constitutes part of this Management Report. Overall assessment of the risk position Although worldwide demand for cars has recovered much more quickly than expected from the consequences of the global financial and economic crisis, the further fortunes of the industry remain very difficult to predict. In particular, the fact that the performance of car markets worldwide is expected to remain both volatile and heterogeneous represents a substantial risk to all businesses in the automotive industry. However, on the basis of all known circumstances and facts, no risks currently exist that could endanger the Company’s survival in the foreseeable future. REPORT ON POST-BALANCE SHEET DATE EVENTS There were no reportable events of material significance after December 31, 2010. REPORT ON EXPECTED DEVELOPMENTS Anticipated development of the economic environment General economic situation AUDI AG believes that the upturn in the global economy will continue in 2011. The emerging countries of Asia and Latin America will make dynamic progress, while the pace of growth in many industrial countries will remain slow. 37 Management Report 4 AUDI AG 10 Business and underlying situation 21 Financial performance indicators 23 Social and ecological aspects 31 Risks, opportunities and outlook 31 Risk report 37 Report on post-balance sheet date events 37 Report on expected developments 41 Disclaimer
38 AUDI AG estimates that most Western European countries will enjoy moderate economic growth in 2011. Germany’s stable upward trend in the business cycle will be maintained, though with slightly less vigorous growth. Export activity is likely to decline somewhat, while domestic demand will become more solid thanks to rising corporate investment and stronger consumer spending. A further improvement in the labor market will have a positive influence. The economic performance of Central and Eastern European countries is likely to gain increasing momentum in 2011. Russia in particular will benefit from rising demand for raw materials and achieve strong economic growth. In the United States, economic growth should be slightly higher than in the previous year. Nevertheless, consumer spending is expected to deliver only little impetus for overall economic activity due to the continuing tight state of the labor market and high levels of household debt. AUDI AG estimates that in Latin America economic growth will be down on the previous year in 2011. In international terms, however, the region’s economies continue to expand at aboveaverage rates. AUDI AG believes economic growth in emerging Asian countries will remain dynamic in 2011. The Chinese economy is likely to expand by a similarly steep rate as in the previous year. The Indian economy, too, will be a strong performer. By contrast, AUDI AG expects to see a marked weakening of growth in the Japanese economy. AUDI AG moreover expects that the global economy will remain buoyant in 2012. There is likely to be continuing variation in economic vigor between individual regions. The car industry AUDI AG expects to see car markets globally put in a mixed performance in 2011. All sales regions worldwide, with the exception of Western Europe, will register rising demand for new vehicles. However, the pace of growth in Asian and Latin American markets will be slower. Overall, demand for automobiles worldwide will be bolstered by the upturn in the global economy and will grow further. AUDI AG estimates that in Germany, the car market will gradually return to normal in 2011, after experiencing major fluctuations in the previous two years as a result of the temporary introduction of the government environment bonus. AUDI AG therefore expects the current year to bring a moderate recovery compared with the low level of 2010. On the other hand, new car registrations elsewhere in Western Europe, but especially in major markets such as the UK and France, will be down. Factors adversely affecting demand include the expiry of government incentives and consumer reticence against the backdrop of the sovereign debt crisis in certain EU countries. The car market in Central and Eastern European countries will enjoy better fortunes in the current year. In Russia in particular, AUDI AG expects the upward trend in car sales to continue. AUDI AG estimates that demand for automobiles in the United States will continue to recover in 2011, though the market’s development will remain muted especially because of high fuel prices. The Asia-Pacific region is expected to maintain its vigorous market growth in 2011, further cementing its position as the world’s major sales region. Nevertheless, growth in China is expected to weaken slightly from the previously high level. As well as tougher emission standards and reduced state aid, further regulatory intervention by the central government and city authorities is to be expected, damping sales mainly in the volume segment. Likewise in the Indian car market, the rate of growth in 2011 will be slightly down on the previous year. On the other hand AUDI AG estimates that there will be a substantial fall in the Japanese car market this year. AUDI AG expects to see a further rise in global demand for cars in 2012. All sales regions worldwide should see new vehicle registrations rise.
Page 1 and 2: Management Report of AUDI AG for th
Page 3 and 4: 4 Management Report of AUDI AG for
Page 5 and 6: 6 Audi received the ADAC “Yellow
Page 7 and 8: 8 Each share carries an entitlement
Page 9 and 10: 10 BUSINESS AND UNDERLYING SITUATIO
Page 11 and 12: 12 Furthermore, the long-term corpo
Page 13 and 14: 14 Audi A1 successful in Euro NCAP
Page 15 and 16: 16 VEHICLE PRODUCTION BY MODEL 1) 2
Page 17 and 18: 18 DELIVERIES TO CUSTOMERS BY MODEL
Page 19 and 20: 20 Audi A6 AUDI AG took the wraps o
Page 21 and 22: 22 The two new models Audi A1 and A
Page 23 and 24: 24 EMPLOYEE STRUCTURAL DATA 2010 20
Page 25 and 26: 26 AUDI IN SOCIETY Donations by emp
Page 27 and 28: 28 Chair of Forest Yield Science at
Page 29 and 30: 30 Aerodynamics Vehicle aerodynamic
Page 31 and 32: 32 Along with the passing of the Ge
Page 33 and 34: 34 AUDI AG performed exceptionally
Page 35: 36 As an innovative carmaker, AUDI
Page 39 and 40: 40 India will remain a major growth
Page 41 and 42: 42 Financial Statements of AUDI AG
Page 43 and 44: 44 Notes to the Financial Statement
Page 45 and 46: 46 GENERAL COMMENTS ON THE BALANCE
Page 47 and 48: 48 4 Inventories EUR million Dec. 3
Page 49 and 50: 50 12 Provisions EUR million Dec. 3
Page 51 and 52: 52 In the case of a transition to t
Page 53 and 54: 54 20 Investment result EUR million
Page 55 and 56: 56 At variance with the previous ye
Page 57 and 58: 58 Auditor’s fees EUR thousand 20
Page 59 and 60: 60 STATEMENT OF INTERESTS PURSUANT
Page 61 and 62: 62 Responsibility Statement “Resp
Page 63 and 64: 64 Mandates of the Supervisory Boar
Page 65 and 66: 66 Dipl.-Wirtsch.-Ing. Hans Dieter
Page 67 and 68: 68 Fuel consumption and emission fi
Page 69 and 70: 70 Model Power output (kW) Transmis
Page 71 and 72: 72 Model Audi Q7 Power output (kW)

Annual Financial Statements Of AUDI AG

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