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Audi achieves robust performance in a challenging financial year 2017 and accelerates business transformation
- Operating profit before special items increases to €5.1 billion; slight increase in operating return on sales before special items to 8.4 percent
- Strong net cash flow confirms high self-financing strength
- Unprecedented year 2018 expected to be challenging: record model initiative with more than 20 market launches, first fully electric series-produced model
- Significantly expanded electric roadmap and China market push
- Action and Transformation Plan: efficiency improvements totaling €10 billion by 2022
- Major upfront expenditures for the future: more than €40 billion for development activities and investment by 2022
The Audi Group increased its revenue and earnings under difficult conditions in 2017. For the first time, revenue surpassed the mark of €60 billion, thus more than doubling over the past eight years. With an operating profit of €5.1 billion before special items, the corresponding operating return on sales of 8.4 percent is within the target corridor. With the inclusion of business in China, which is presented under financial result, the operating margin would be one percentage point higher. As a result of updated measurement assumptions for the settlement agreements relating to the V6 3.0 TDI diesel issue in North America, Audi recognized additional provisions of €387 million in 2017. After these special items, operating profit amounted to €4.7 billion and the operating return on sales was 7.8 percent. In 2018, Audi will launch more new models than ever before and will enter the age of electric mobility. In view of the ambitious management of multiple model launches and phase-outs, the company anticipates another challenging year, before the model initiative should have a sustained positive impact on deliveries and earnings from 2019 onwards. Audi is investing massively in the future and is applying a comprehensive program of measures to pave the way for the profitable restructuring of its business model in line with the “Audi. Vorsprung. 2025” strategy.