Audi increased its revenue and earnings under difficult conditions in 2017 and, for the first time, revenue surpassed €60 billion (Dh270.56bn) with an operating profit of €5.1 billion before special items, an increase of 4.4 per cent from 2016's €4.84bn.
“In 2017, we demonstrated entrepreneurial strength and above all formulated a determined master plan for the coming years,” said Rupert Stadler, Audi chairman. “We intend to play a leading role in the tremendous upheaval facing our industry. By 2022 alone, we have planned more than €40bn for development activities and investment. We are making Audi fit for this mission with our Action and Transformation Plan.”
In the past financial year, deliveries of Audi cars rose, despite the upcoming generation changeovers for many models, by 0.6 per cent to an all-time high of 1,878,105 automobiles from 2016's 1,867,738, and increase of 8.4 per cent. Despite the unfavourable currency environment, the Audi Group’s revenue increased by 1.4 per cent to €60.12bn in 2017, up from €59.31bn the previous year.
This year, Audi will launch more new models than ever and will enter the age of electric mobility, it said. This will result in what the German car maker said would be another challenging year, before a pick up in deliveries and earnings from 2019.
The car maker said it significantly broadened its electrification roadmap across the entire model portfolio and is collaborating closely with Porsche and Volkswagen. In 2025, Audi will offer more than 20 electrified models that will account for one third of unit sales.
As a sporty spearhead, the premium manufacturer recently announced the four-door Gran Turismo with purely electric drive. Production will start early in the coming decade at the Böllinger Höfe site near Neckarsulm. “We interpret sportiness very progressively with our fully electric e-tron GT, and this is how we will take our high-performance brand Audi Sport into the future,” said Mr Stadler.
Late this year, the Four Rings’ first fully electric series-produced model will be launched: the Audi e-tron 4x4, which allows fast-charging at up to 150 kilowatts, making it ready for long-distance use again in less than half an hour. The e-tron will be produced completely CO2-neutral at the converted Brussels plant where also the model’s batteries will be assembled. Audi Hungaria is ready to start production of the 4x4's electric motor in Győr, Hungary.
Audi plans to again achieve the 2017 record level of car deliveries, although the numerous model changes will at first have a dampening effect. Revenue should increase slightly, it said. Implementing its Action and Transformation Plan, the company aims at an operating return on sales within the target corridor of 8 to 10 per cent, despite high ramp-up costs and upfront expenditures for the future. With a consistent strategic focus and prioritisation, Audi anticipates the ratio of research and development expenditure to revenue to be slightly above the strategic target corridor of 6 to 6.5 per cent. The ratio of capital expenditure to revenue is expected to moderately exceed its target corridor of 5 to 5.5 per cent. The net cash flow should be between €2.7bn and €3.2bn.
Audi said its Action and Transformation Plan aims to achieve positive earnings effects totalling €10 billion by 2022.
“We are implementing our programme of measures quickly and systematically, we are becoming more efficient and we are investing freed-up resources in new, profitable growth," said Alexander Seitz, the manager of finance, IT and Integrity at the firm. "This has already allowed us to decide four additional new models and derivatives with an unchanged budget.”
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Audi said with the Action and Transformation plan, process efficiency in technical development, for example, is set to improve by up to 30 per cent, partially as a result of intensified virtual development, Audi said. The company has increased its budget for further training by a third to a total of more than €0.5bn by 2025.
In China, the Four Rings, together with its joint venture partner FAW, will expand its model range, especially with regard to electric drive and sporty 4x4s, it said. Ten brand new 4x4 versions are planned for the coming five years, seven of which will be produced locally, meaning the Audi portfolio produced locally at FAW-VW will more than double by 2022. With the joint establishment of a new sales company and a joint venture for mobility and digital services, Audi and the FAW Group are restructuring their business in China for the next growth phase, Audi said. In addition, tye firm is in constructive talks with Chinese car maker SAIC about future cooperation in order to further strengthen its involvement in the Chinese market.
With more than 20 market launches this year, Audi will manage the biggest model initiative in its history. The brand will present new automobiles in six of its core model series and successively start their production.
With regard to the settlement agreements on the V6 3.0 TDI diesel emissions issue in North America, in part as a result of the VW diesgate scandal, in 2017 Audi updated the measurement assumptions of provisions in its balance sheet against the backdrop of extensive and technically complex buyback and retrofit programmes. This led to negative special items in an amount of €387 million. They include expenditure and provisioning for technical measures and legal risks. In the previous year, negative special items of €1.79bn were included in Audi’s consolidated financial statements. In addition to the V6 3.0 TDI diesel issue in North America, they were also related to potentially faulty Takata airbags. For the year 2017, the bottom line shows operating profit of €4,671 million (2016: €3,052 million) and an operating return on sales of 7.8 percent (2016: 5.1 percent). Audi achieved profit before tax of €4,783 million (2016: €3,047 million). The strong increase is due not only to lower negative special items, but also to the improved financial result.
In the context of its product initiative and reorganisation of the production network, capital expenditure amounted to €3.9bn up from 2016: €3.4bn in 2016. At the same time, the company achieved a positive net cash flow of €4.3bn up from 2016's €2.1bn, it said.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Brief scores:
Juventus 3
Dybala 6', Bonucci 17', Ronaldo 63'
Frosinone 0
Honeymoonish
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Elie%20El%20Samaan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENour%20Al%20Ghandour%2C%20Mahmoud%20Boushahri%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Tickets
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
THE%20SPECS
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
Dengue%20fever%20symptoms
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A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
SPEC%20SHEET%3A%20APPLE%20IPAD%20PRO%20(12.9%22%2C%202022)
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CONFIRMED%20LINE-UP
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Diriyah%20project%20at%20a%20glance
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