Audi the most successful premium brand
Ralph Weyler Member of the Management Board Marketing and Sales, AUDI AG
Audi Sales – continuous growth
Volume
905,200
358,000
´93
´94
´95
´96
´97
´98
´99
´00
´01
´02
´03
´04
´05
´06
Source: Audi Market Research
Key performance indicators (IFRS) EUR million 2005 Jan.–Dec.
2006 Jan.–Dec.
Change
26,591
31,142
+ 17.1 %
Profit from operating activities
1,407
2,015
+ 43.2 %
Profit before tax
1,310
1,946
+ 48.5 %
824
1,343
+ 63.0 %
3,391
5,720
+ 68.7 %
52,412
52,297
- 0.2 %
Revenue
Profit after tax Net liquidity Employees
[31.12.]
Top markets January – April `07 (Deliveries to customers)
1. Germany
78,428
11. Austria
5,672
2. Great Britain
38,711
12. Switzerland
5,112
3. China
32,649
13. South Africa
4,768
4. USA
29,134
14. Japan
4,538
5. Italy
21,502
15. Russia
4,409
21,470
16. Ireland
3,216
7. France
18,152
17. Australia
2,536
8. Belgium
13,137
18. Portugal
2,421
6,323
19. Canada
2,415
6,093
20. Norway
2,386
6. Spain
(without Hong Kong)
(incl. Canaries)
9. Netherlands 10. Sweden
Deliveries to customers – January – December `06 (worldwide)
Total
905,188 339,572
235,564
234,582
52,771 22,601
19,498
A3
TT
A4
A6
Q7
A8
Development of Product Portfolio
2001 26.4%
2006 34.3%
A8 1.6%
A6
Q7 2.5%
A2 A6
7.2%
24.8% 20.0%
A8
A3
5.9%
25.9% 26.0%
2.2%
6.0%
A3
TT
TT 37.5%
40.4%
A4
726,100
A4
905,200 Source: Audi Market Research
Increase in revenue from options 2001 – 2006, Germany
Audi A6 Audi A6
+ 69% Audi A8
+ 90%
Most expensive Audi – Heavily-armored A8
Amount of invoice: EUR 501,432
Audi Genuine Accessories® 22% increase in revenue from Audi Genuine Accessories®
Audi quattro
Sales leader for four-wheel-drive models in the premium segment
Segment leadership
World market leader in the A6 segment
Success factor – the Audi brand
Audi brand history
Wanderer 1885
Horch 1899
DKW 1907
Audi 1909
Audi brand DNA Auto Union Type D - 1938
Audi brand DNA
DKW F89 - 1950
NSU RO 80 - 1967
DKW F102 - 1965
Audi 50 - 1974
Development of the Audi brand
Traditional
Premium
Volume
Modern
Audi brand profile – Guide for all Audi activities
sporty
sophisticated
progressive
Innovations
quattro
LED light
TDI
S tronic
multitronic
ASF
FSI
MMI
adaptive light
One of the top 100 global brands
One of the top 100 global brands
Audi Strategy 2015
New Products
1.5 mill.
Market Penetration 905,200
2006
2015
Audi A3
Audi RS 4
Audi S6
Audi Q7
Bild Q7
Audi A8
Audi TT
Audi R8
Audi S5
Audi Strategy 2015
New Products
1.5 mill.
Market Penetration 905,200
2006
2015
Development of Audi in emerging markets Vehicle sales 2006, thousand vehicles
Russia 10,050 +64.3%
China South Korea Middle East 80,808 +39.0% 4,311 +96.0% 4,616 +53.5% Hong Kong 900 +20.0% India 300 +185.7%
Australia 5,777 +20.2%
USA – Total market
Total market: 17 mill. vehicles
Luxury IHG-SUV 2.8% 475,200
Luxury IHG-CAR 6.0% 1,017,900
Luxury Domestic (Cadillac, Lincoln)
2.1% 358,200
Volume market 89.1% 15,142,500
IHG = Importer High Group Market Source: Audi Market Research
USA – Strategic fields of actions
1
2
Product portfolio
Product quality
Profitability 3
5
Exclusive & premium dealer net
Perception of brand & prestige 4
Residual value
USA Dealership today
Jack Daniels – Upper Saddle River (New Jersey)
China – Chauffeur usage – e.g. Audi A6 LWB
China – Focus on comfort – Rear Seat Entertainment
China – Adaptation of product features – e.g. MMI
China – Audi Olympic Sponsoring
Audi Olympic Theme: Audi – Passion for Movement
China – Audi Forum Beijing
Russia Communication
Emerging markets – Market development India
India Retail Strategy
Delhi
Delhi
Mumbai
Bangalore
Mumbai
Bangalore
Bestehende Standorte
Focus on Prestige Prestige is... 1. the basis for our price premium
2. the basis for our profitability 3. the key for higher loyalty and conquest rates
Audi prestige generators
Brand history 4% Dealership Communication
8%
Product 28%
9%
12% Motor sports
32% Driver image
Source: Audi Market Research
Product: Individualization and craftsmanship
Communication: Penetration of USPs
Communication: Efficiency Campaign
Motor sports: Audi R10 TDI - Le Mans
Motor sports: Relevance for the brand
Audi fields of competencies Bodywork
Power train
Design
Engines
• Le Mans is a public demonstration of product, brand and technological competence
Dealership: 2,665 Audi dealers worldwide
Dealership: Audi Forums
Hong Kong - China
New York - USA
Riyadh - Saudi Arabia
Tokyo - Japan
Dealership: Audi terminal, e.g. Germany
Dealership: Qualification initiative – Q-Power New cars Infrastructure Systems Processes People/Behavior
Used cars
Parts
Service
Volume – Forecast 2015 (in thsd. veh.)
1,500
1,000 905
448
492
546
599
829
770 726 742
779
'01
'04 '05
635 653
376
'94 '95
'96
'97 '98
'99 '00
'02 '03
'06
'08
'15
Disclaimer This presentation contains statements on the future business progress of the Audi Group. These statements can be identified in both the spoken comments and in the texts by such words as "expect", "plan" and "intend" or similar words. These statements are based on assumptions regarding the development of the economy in individual countries and in particular in the car industry, which we have made on the basis of the information that is available to us and that we currently regard as realistic. The estimates are exposed to risks, and the actual development may deviate from anticipated developments. If there is consequently an unexpected downturn in or stagnation of demand in our principal sales markets, such as Western Europe (including Germany in particular), the USA or China, this will affect our business performance correspondingly. The same applies in the event of significant changes to the current exchange rates of the US dollar, the pound sterling and the Japanese yen. If one of these factors of uncertainty or other imponderables should materialize or the assumptions on which the statements are made prove to be false, the actual results could deviate from the results quoted in these statements or implicitly expressed. Announcements of an anticipatory nature are not updated in retrospect. These statements are valid on the day of publication and may be replaced.
