ŠKODA Annual Report

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ŠKODA Annual Report 2012 ŠKODA Annual Report ŠKODA AUTO a.s. Contents 4 Foreword Management Report 8 ŠKODA AUTO Group Profile 9 Corporate Governance 9 Report of the Supervisory Board 10 ŠKODA AUTO bodies 12 Declaration of Compliance with the Code of Corporate Governance 13 Business Operations 13 Strategy 14 Product Portfolio 15 Overview of developments on the automobile markets 16 Financial situation 18 Technical development 19 Purchasing 20 Production and logistics 23 Sales and marketing 27 Human resources management 29 Sustainability 32 Risk Report 32 Risk management system 34 Outlook 34 Short-term and long-term outlook 36 Milestones of the year 2012 Financial Section 42 Auditor‘s report on the annual report and the report on relations 44 Auditor’s report on the consolidated financial statements 46 Consolidated financial statements for the year ended 31 December 2012 51 Notes to the consolidated financial statements 2012 106 Auditor’s report on the separate financial statements 108 Separate financial statements for the year ended 31 December 2012 112 Notes to the separate financial statements 2012 168 Report on relations 173 Glossary of terms and abbreviations 175 List of non-consolidated capital holdings of ŠKODA AUTO 176 Persons responsible for the annual report and post-balance sheet events 177 Key figures and financial results at a glance Company Overview ŠKODA AUTO, based in Mladá Boleslav in the Czech Republic, is one of the world’s longest-standing automobile manufacturers. The tradition of the Company dates back to 1895, when Václav Laurin and Václav Klement formed a partnership that laid the foundation for over 100 years of Czech expertise in automotive engineering. The ŠKODA brand has been a Volkswagen Group brand for more than 20 years. During this time, the ŠKODA AUTO Group’s sales have increased substantially and its product portfolio has expanded significantly. Today, ŠKODA AUTO employs more than 26,400 people worldwide. The ŠKODA AUTO Group has production facilities in the Czech Republic and India. Furthermore, ŠKODA cars are produced in China, Russia, Slovakia, the Ukraine and Kazakhstan. This international presence will form the basis for the Group’s planned growth over the next few years. The conditions for this are already in place: impressive automobiles, a strong brand, a motivated and capable team and the ability to turn innovations into Simply Clever customer benefits. Annual Report 2012 3 Foreword The year 2012 was another year of new records for us. The rigorous pursuit of our growth strategy is clearly having an impact. With 939,202 vehicles delivered to customers, we ex- ceeded the previous year’s record and increased the number of vehicles delivered to customers by 6.8%. Positive sales development and successful measures to boost efficiency ensured that our financial performance re- mained largely stable, despite difficult conditions worldwide. Sales revenue in the amount of CZK 262.6 billion increased by 4.0% year-on-year and, at CZK 17.9 billion, operating profit almost matched the previous year’s high figure. This gives us the strength to keep ŠKODA AUTO on a steady growth course. Our strategic goal remains unchanged: We aim to sell at least 1.5 million ŠKODA automobiles per year worldwide by 2018. Our model offensive will generate the necessary momen- tum for this. Over the next few years, we will be introducing a new or substantially-revised vehicle onto the market every six months on average. We started out with the ŠKODA Citigo and followed it with the ŠKODA Rapid. The new ŠKODA Octavia also made its world premiere in December 2012. In December, we also launched a cooperative project with Volkswagen and the Russian manufacturer GAZ Group to build the ŠKODA Yeti at the Nizhny Novgorod plant. This move will strengthen our position in the important Russian market. To secure our future growth, we made substantial invest- ments in many areas. Mladá Boleslav was one of the main focal points: Production capacity was increased at the plant Prof. Dr. h.c. Winfried Vahland Chairman of the Board of Management 4 Annual Report 2012 itself, the parts centre expanded, a new high-performance ul- reliable and practical for our customers with lots of smart and tra-energy-efficient IT centre put into operation and the new useful “Simply Clever” details. “Simply Clever” not only applies “Lean Centre” opened. After extensive remodelling, moderni- to our vehicles these days, but also defines our thoughts and sation and expansion, the Vrchlabí plant also began produc- actions throughout the entire company. tion of the advanced DQ 200 seven-speed dual clutch trans- We made the important issue of sustainability a priority in 2012 mission, while in Česana, construction of a new engine testing and established the ambitious “GreenFuture” environmental centre got underway. project to entrench sustainability even more firmly through- With a view to our internationalisation and growth strategy, we out the Company. We also improved the transparency of our also invested in employee training programmes. A successful as- reporting, and our recently published 2011/2012 Sustainability signment abroad depends on professional expertise and a will- Report meets the criteria of the Global Reporting Initiative for ingness to adapt to new and often unexpected challenges. Our the first time. wide range of programmes prepares our employees for working Our work continues. Once again, we have ambitious plans for abroad and supports them while away and on their return. 2013. We will pursue our model offensive and expand our global Although ŠKODA AUTO has its eyes firmly fixed on the future, presence. We will adhere to our chosen path. We will work hard the Company is understandably proud of its 117-year history. to ensure that the ŠKODA AUTO success story continues. This Reason enough for a complete redesign of the ŠKODA Muze- fascinating company with its fine history is worth every effort. um in Mladá Boleslav – enabling the Company’s history to be presented in a new and contemporary way. The strength of tradition is not only evident at the new ŠKODA Muzeum, but also in the impressive track record of our motor- Yours sports team. After its successes in 2010 and 2011, ŠKODA Mo- torsports found a higher gear and went on to make 2012 the most successful year so far in the 111-year history of ŠKODA Motorsport. We will continue to use the strength of our brand to convince people of our vehicles’ qualities in impressive new models in Prof. Dr. h.c. Winfried Vahland the future. ŠKODA automobiles make everyday driving more Chairman of the Board of Management Annual Report 2012 5 6 Annual Report 2012 Management Report 8 ŠKODA AUTO Group Profile 9 Corporate Governance 9 Report of the Supervisory Board 10 ŠKODA AUTO bodies 12 Declaration of Compliance with the Code of Corporate Governance 13 Business Operations 13 Strategy 14 Product Portfolio 15 Overview of developments on the automobile markets 16 Financial situation 18 Technical development 19 Purchasing 20 Production and logistics 23 Sales and marketing 27 Human resources management 29 Sustainability 32 Risk Report 32 Risk management system 34 Outlook 34 Short-term and long-term outlook 36 Milestones of the year 2012 Annual Report 2012 7 ŠKODA AUTO Group Profile ŠKODA AUTO Group profile The ŠKODA AUTO Group ("the Group") is one of the leading ŠKODA AUTO Slovensko, s.r.o. corporate groups in the Czech Republic. It comprises the ŠKODA AUTO Slovensko, s.r.o. was established in 1993 as a parent company ŠKODA AUTO a.s., its fully consolidated subsidiary of ŠKODA AUTO a.s. Its principal business is the subsidiaries ŠKODA AUTO Deutschland GmbH, ŠKODA AUTO purchase and sale of vehicles, genuine parts and accessories. Slovensko, s.r.o., Skoda Auto India Private Ltd., and associates. Skoda Auto India Private Ltd. ŠKODA AUTO a.s. This company was established as a subsidiary of ŠKODA AUTO The parent company, ŠKODA AUTO a.s. ("the Company"), is a a.s. in 1999 and began assembling vehicles in 2001. Its princi- Czech company with a tradition of automotive manufactur- pal business is the purchase, manufacture and sale of vehi- ing dating back more than a century, making ŠKODA one of cles, genuine parts, accessories and other goods. the world’s oldest automotive brands. The Company’s prin- cipal business is the development, manufacture and sale of OOO VOLKSWAGEN Group Rus ŠKODA-brand automobiles, components and genuine parts The company’s principal business is the purchase, manu- and accessories and the provision of maintenance services. facture and sale of vehicles, genuine parts and accessories. The sole shareholder of the parent company, ŠKODA AUTO ŠKODA AUTO a.s. holds a minority interest in this company. a.s., is the company Volkswagen International Finance N.V., with its registered office in Amsterdam, the Netherlands. In addition to OOO VOLKSWAGEN Group Rus, the ŠKODA Volkswagen International Finance N.V. is an indirect 100% AUTO a.s. company also has substantial interests in other as- subsidiary of VOLKSWAGEN AG. sociated companies. However, their impact on the consolidat- ed corporation’s results is insignificant ŠKODA AUTO Deutschland GmbH ŠKODA AUTO Deutschland GmbH was established in 1991 and has been a subsidiary of ŠKODA AUTO a.s. since 1995. The company’s principal business is the purchase and sale of vehi- cles, genuine parts and accessories. ŠKODA AUTO a.s. registered office: Mladá Boleslav, Czech Republic ŠKODA AUTO ŠKODA AUTO Skoda Auto OOO VOLKSWAGEN Deutschland GmbH Slovensko, s.r.o. India Private Ltd. Group Rus registered office: registered office: registered office: registered office: Weiterstadt, Germany Bratislava, Slovakia Aurangabad, India Kaluga, Russia 100% holding of 100% holding of 100% holding of 16.8% holding of ŠKODA AUTO ŠKODA AUTO ŠKODA AUTO ŠKODA AUTO 8 Annual Report 2012 Corporate Governance Report of the Supervisory Board In the past fiscal year, the Supervisory Board was regularly nancial statements pursuant to IFRS as at 31 December 2012, and extensively informed by the Board of Management of and the report on relations between affiliated persons for the operations of ŠKODA AUTO a.s.
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