In a year where the business continued its road to becoming a leading provider of connected, fully electric premium mobility, the Audi Group concluded the fiscal year 2022 with a record result. Operating profit increased by over 40% to an all-time high of €7.6 billion, while revenue increased by 16.4% to a record €61.8 billion. The operating margin increased from 10.4% to 12.2% from the previous year, and net cash flow reached €4.8 billion, the second-highest amount in the history of the corporation. Consistent crisis management during a year of converging global issues, a strong price position, and positive results from the Bentley, Lamborghini, and Ducati brands were key contributors to this year's outstanding financial performance.
Additionally, there was a significant increase in fully electric vehicle deliveries in 2022. Starting with the next Q6 e-tron model series, Audi will begin the largest product campaign in the company's history in 2023. The Premium Platform Electric (PPE) will serve as the foundation for this first electric vehicle.
According to Markus Duesmann, CEO of Audi AG, "Our Vorsprung 2030 strategy offers the right solutions, even in times of multiple crises. We are steadily advancing the digitalization and electrification of our products while putting a special emphasis on sustainability at Audi.
Deliveries nearly match those of the previous year. In 2022, the Audi, Bentley, Lamborghini, and Ducati brand groups shipped 1,638,638 automobiles (1,688,9782 in 2021) and 61,562 motorcycles (59,447 in 2021). Due to a robust second half of the year, deliveries this reporting year stayed nearly on pace with last year despite significant obstacles in the logistics and supply chains, notably in the first half of the year. The Audi brand gave consumers 1,614,231 vehicles in 2022 (compared to 1,680,512 in 2021).
consistent, significant development of electric vehicles The Audi Group experienced a considerable increase in fully electric vehicle deliveries in 2022. The Premium brand group is steadily advancing its electrification strategy, with 118,196 vehicles, or a 44 percent increase, in completely electric vehicle deliveries. The share of fully electric vehicles delivered increased from 4.8 percent to 7.2 percent due to the ongoing, strong demand for electric vehicles. With the introduction of the Premium Platform Electric (PPE), Audi is reaffirming its dedication to leading the industry in connected, premium electric mobility. The platform, which was created in collaboration with Porsche, is a crucial element in extending Audi's global lineup of electric vehicles. In the second half of 2023, the group will introduce the Q6 e-tron model series, its first production model based on the PPE.
"With the Audi Q6 e-tron, e-mobility is coming from Ingolstadt for the first time," claims Duesmann, the CEO of Audi. We're also constructing a special battery assembly factory on the property for that purpose. This will allow us to keep crucial know-how in Germany and develop our staff in emerging industries.
record-breaking earnings The revenue of the Audi Group increased to €61,753 (2021: 53,068) million. The strong price position and one-time consolidation of the Bentley brand on January 1, 2022, are mostly to blame for the 16.4% increase. Revenue from the Audi A3 and Audi Q5 model series, as well as the completely electric Audi Q4 e-tron*, Audi e-tron GT quattro*, and Audi e-tron models, all contributed significantly to the rise.
Considering sustainability in all business decisions In fiscal year 2021, the brand group started voluntarily disclosing its EU taxonomy data. The portion of EU-taxonomy-aligned revenue increased to €8.3 (2021: 6.8) billion as compared to the overall revenue of the Audi Group, or 13.5 (2021: 12.8) percent of total revenue. This includes fully electric vehicle sales income, which increased by 49% and represents a significant step forward for the Audi brand's e-roadmap. As a result, the corporation is highlighting how crucial ESG sustainability requirements are to its Vorsprung 2030 plan.
Audi AG is now acquiring a thorough ESG rating from an independent rating agency in order to make apparent and clear the high priority the firm places on sustainable development in accordance with ESG (environment, social, and governance). In the spring of 2023, the rating is expected to be released.
Audi AG is constructing its automotive value chain on the principles of the circular economy as part of its effort to position itself for a sustainable future. Over the following several years, Audi plans to gradually increase the proportion of recycled materials in its fleet. As a result, the corporation will be able to lessen the environmental impact of its models. Long-term supply security may also be enhanced by direct access to secondary resources. The brand with the four rings began the MaterialLoop trial project in October 2022, along with 15 other partners from the research, recycling, and supply industries. Around 100 end-of-life vehicles have already been demolished as the company and project partners look into the possibility of utilizing materials from cars that have reached the end of their useful lives for the creation of new automobiles. At Audi, there are numerous circular economy initiatives. The Volkswagen plant in Bratislava, the Audi plants in Neckarsulm, Ingolstadt, and Gyr in Hungary, and the Aluminum Closed Loop are already in use.
The Audi Group is accelerating its transition into a supplier of connected, sustainable luxury mobility. Two-thirds of the company's expenditures between 2023 and 2027, or almost €28 billion, will go toward electrification and digitalization. CEO of Audi Duesmann: "Our attention to sustainable goals will guide our short-, medium-, and long-term actions. This clear direction is confirmed by upcoming investments from the current planning phase.
Operational profit for the group hits a record high. Operating profit increased by 37.3 percent to €7,550 million (from €5,498 million in 2021). Additionally, the operating margin dramatically grew to 12.2 percent (from 10.4 percent in 2021). The benefits of securing raw materials as well as robust market performance played a vital role in these record achievements.
The method for guaranteeing that employees benefit from these financial triumphs is also being changed in keeping with the company's focus on social sustainability. The corporation and the Works Council have revised Audi's profit-sharing plan to achieve this. On top of the 2019 joint agreement with Audi Future, this amendment was made. The focus is on bolstering the corporate pension plan and making sure that every employee gets a cut of the company's revenues, starting with the first euro. Additionally, the change adds a collective component that is profit-dependent in order to improve Audi's long-term appeal as an employer. Audi is compensating staff members based on the updated plan for their efforts in the difficult year of 2022: For example, the Audi profit share for a competent worker in the German plants this year is €8,510 (up from €5,670 last year).
record sales for Bentley, Lamborghini, and Ducati. The outstanding performance of the Audi Group is mostly attributable to Bentley, Lamborghini, and Ducati, all of which set records in the fiscal year 2022. For the third straight year, Bentley, for example, achieved a new delivery record. The British brand broke its previous record for deliveries by 3.5 percent with 15,174 vehicles delivered (15,659) while also significantly increasing revenue to €3,384 (2021: 2,845) million. Operating profit was €708 (2021: 389) million, which was much higher than the amount from the previous year, and the operating margin increased to an all-time high of 20.9 (2021: 13.7) percent.
In the previous fiscal year, Lamborghini sold 9,233 (2021: 8,405) vehicles to consumers while increasing sales by 21.9 percent to €2,375 (2021: 1,948) million. With an operational margin of 25.9 (2021: 20.2) percent, Lamborghini produced an operating profit of €614 (2021: 393) million. Despite the extremely difficult supply situation, Ducati shipped 61,562 motorbikes to consumers (2021: 59,447), the most in a single year in the company's history. Sales rose by 24.0% to €1,089 (2021: 878) million, helped in part by a more favorable price position. Operating income increased to €109 million (2021: 61 million), and operating margin reached 10.0 percent (2021: 7.0 percent).
Financial results were marginally better than the prior year. The financial performance of the Audi Group improved noticeably in 2022 to €1,522 million (1,430 million in 2021). This number represents the revenue generated by the Audi Group's operations in China, which was €1,153 (2021: 1,140) million. At the conclusion of the year, earnings after taxes totaled €7,116 million (2021: 5,649).
Second-highest level in business history for net cash flow The Audi Group's net cash flow for 2022 totaled €4,808 (2021: 7,757) million, which not only represented a great performance but also the second-highest total in the history of the business. The decrease (in comparison to the very high figure from the previous year) can be partly attributed to higher stockpiles, which ensure our capacity to deliver, and partially to the ongoing disruption of supply chains and logistics.
Net cash flow was further impacted by higher taxes as well as changes to holdings, including the one-time capital commitment to Audi Formula Racing GmbH and the spin-off of sales entities within the Volkswagen Group.
Additionally, investments increased year over year, notably those of Audi FAW NEV Company Ltd., which is fully integrated into the Audi Group. The Group is laying the groundwork for the expansion of the localized completely electric product line in China with the construction of the new production facility for fully electric Audi cars based on the PPE in Changchun.
A glimpse at the financial year 2023 According to Audi CFO Jürgen Rittersberger, "Audi demonstrated great financial strength in 2022 despite difficult global economic conditions and broke records in revenue and operating profit. These outcomes give us hope that we can continue to meet our challenging strategic objectives in the future.
The brand group currently anticipates that the group will continue to experience positive developments in the fiscal year 2023, subject to the supply situation and the performance of the global economy: Between 1.8 and 1.9 million automobiles are anticipated to be delivered to customers in the brand group, while between €69 billion and €72 billion in revenue is anticipated to set a new record. Considering that car prices are likely to be high, the operating margin is anticipated to range between 9 and 11 percent. The Audi Group anticipates its net cash flow to be in the range of €4.5 billion and €5.5 billion, maintaining its impressive performance.
