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Volkswagen Group delivers strong 2023 outcomes – Efficiency packages and report variety of new product launches stabilize future growth

Oliver Blume, CEO Volkswagen Group, stated: “In 2023, we’ve got established a strong basis. We’re conscious of our present challenges and are tackling them rigorously with a view to leverage the large potential of the Volkswagen Group. With inspiring merchandise, a constant technique and a transparent deal with implementation, we’re trying ahead to the 2024 monetary yr with confidence. The Volkswagen Group is getting into the long-distance race of transformation from a place of power. We at the moment are making ready the Group for sustainable optimistic growth. With our broad and continually rising product portfolio, we will fulfil the desires of all our clients globally like no different producer. This flexibility is an actual aggressive benefit that can allow us to stay profitable sooner or later.”

Strong outcomes and efficiency packages stabilize future growth

In 2023, Volkswagen Group achieved strong ends in a difficult atmosphere and proved that the Group delivers reliably with its robust manufacturers. Deliveries elevated 12 % to 9.24 million autos, with all areas contributing to this enhance. With gross sales income of EUR 322.3 billion, an working revenue of EUR 22.6 billion and a revenue after tax of EUR 17.9 billion, Volkswagen Group demonstrated the resilience of its enterprise mannequin. The working return on gross sales earlier than particular gadgets amounted to 7.0 %, regardless of appreciable headwinds from the valuation of commodity derivatives, which had a optimistic influence on the working revenue within the earlier yr. Adjusted for these valuation results, the working revenue reached EUR 25.8 billion, which corresponds to a margin of 8 %. The Automotive Division’s web money movement rose to EUR 10.7 billion. With web liquidity within the Automotive Division of EUR 40.3 billion on the finish of the yr, the Group is in a really strong monetary place. Earnings per most popular share elevated by EUR 2.26 to EUR 31.98 (+8 %).

To notice, Volkswagen Group had already printed the Group’s key figures for the previous monetary yr and an outlook for 2024 on March 1, 2024.

The Board of Administration and Supervisory Board are proposing a dividend of EUR 9.00 per peculiar share and EUR 9.06 per most popular share to the Annual Common Assembly, representing a rise of EUR 0.30 per peculiar and most popular share, respectively, in comparison with the earlier yr’s figures. The payout ratio corresponds to twenty-eight %.

Share of electrical autos in deliveries constantly elevated

Electrification gained vital traction previously yr. Throughout all quarters, the share of battery-electric autos in deliveries rose successively, peaking at round 10 % within the fourth quarter. Within the full yr, the BEV share reached 8.3 % – a brand new report. In absolute figures, Volkswagen Group delivered 771,100 battery electrical autos final yr, which corresponds to a rise of 35 % in comparison with 2022, pushed by development in all areas. The Group has, as soon as once more, confirmed its main place on this section in Europe.

Arno Antlitz, CFO and COO Volkswagen Group, stated: “In a difficult atmosphere, Volkswagen Group delivered strong ends in 2023. That’s what we wish to construct on this yr. The Group is well-positioned and operates from a financially robust place. On this foundation, we are going to persistently drive ahead our transformation in the direction of electromobility and digitalization. To make sure that we stay profitable sustainably, we are going to focus in 2024 on ramping up new autos, decreasing prices, making better use of synergies throughout the Group and establishing extra strong regional positioning additionally by persevering with to develop profitably in North America.”

Funding peaks this yr and declines to comply with

The Group continues to persistently pursue strategic funding planning to additional enhance competitiveness, broaden its actions in probably the most enticing development markets and strengthen all the product portfolio. On the identical time, by making better use of Group synergies, investments within the upcoming five-year plan for the years 2025 to 2029 might be restricted to EUR 170 billion. This might be invested primarily in new merchandise, strengthening the areas, within the battery enterprise and platforms for battery electrical autos and in fashions with trendy, more and more hybridized combustion engines. Investments are anticipated to peak in 2024 after which method the goal degree of 11 % of gross sales income by 2027.

Efficiency packages with a sustainable impact on outcomes

Volkswagen Group is implementing the biggest earnings program ever initiated within the Group and is aiming for a sustainable impact of greater than EUR 10 billion throughout all the Group by the tip of 2024. This will even present cushioning for hostile results reminiscent of inflation and elevated prices. The corporate is specializing in measures to extend efficiency and scale back prices by optimizing materials and product prices, decreasing fastened and manufacturing prices, and rising earnings, each in gross sales and after gross sales.

The efficiency packages, developed throughout all manufacturers, supply a threefold alternative. They’re meant not solely to extend the Group’s competitiveness and enhance effectivity, but additionally to unlock monetary sources to put money into merchandise and new enterprise areas to higher meet world buyer necessities in the long run. Moreover, they assist to safe jobs and places in the long run. These packages are constantly developed additional to have the ability to function efficiently in a dynamically altering market.

Introduction of the PPE platform for extra efficiency and suppleness

First fruits of the realignment might be seen with the launch of the all-electric premium platform PPE, which stands for efficiency, flexibility, and scalability. Following the instance of the MEB platform, the PPE platform permits the environment friendly use of synergies within the premium and luxurious segments.

The portfolio might be considerably upgraded once more in 2024 with vital bestsellers such because the Golf, Tiguan, Passat, Octavia and Excellent, typically enhanced with trendy hybrid know-how, and the all-electric MEB household. All upgrades will additional strengthen the Group’s place. As well as, there are fully new all-electric fashions such because the Porsche Macan Electrical and the Audi Q6 e-tron on the Premium Platform Electrical in addition to the MEB-based VW ID.7 and ID.7 Tourer, the CUPRA Tavascan and the VW ID. Buzzwith a protracted wheelbase.

Because of the quite a few product highlights, the Group expects incoming orders in Western Europe to choose up velocity within the coming months, in comparison with the earlier yr. This additionally applies to the all-electric autos which might be already obtainable and for which Volkswagen Group has began the brand new yr with a clearly optimistic development, in comparison with the earlier yr’s interval.

General, the Group is assured a couple of report yr for brand spanking new fashions in 2024, by which greater than 30 new product launches are deliberate due to highly effective platforms. Supported by a powerful working enterprise, the Group can also be planning additional investments within the battery actions and strengthening the areas.

Versatile technique

Volkswagen Group is satisfied that the way forward for mobility is electrical. Whereas some international locations proceed to point out a formidable tempo of transformation, the ramp-up of electrical mobility in different areas is unfolding much less rapidly than anticipated. Volkswagen Group’s technique is subsequently characterised by flexibility. Whereas in depth investments are being made within the enlargement of electrical mobility, extremely aggressive, environment friendly, and enticing fashions with combustion engines will stay a part of the product vary in the course of the transition part. Improved and new plug-in hybrids complement the vary in lots of markets.

All model teams contribute to the event of the working revenue

Within the Passenger Vehicles section, all model teams achieved good ends in 2023. Not solely was gross sales development robust, however working revenue earlier than particular gadgets adjusted for the consequences of commodity hedging additionally elevated throughout all manufacturers.

The working return on gross sales of the Model Group Core (Volkswagen, Volkswagen Business Autos, Škoda, SEAT/CUPRA) rose to five.3 % (3.6 %), which is primarily attributable to the robust enhance in gross sales income of 21 % to EUR 137.8 billion. With this working revenue, the Model Group Core has taken an vital first step in the direction of its strategic return goal of 8 %.

Gross sales income of the Model Group Progressive (Audi, Lamborghini, Bentley, Ducati) rose to EUR 69.9 billion (+13 %) in 2023. The working revenue decreased to EUR 6.3 billion. Earlier than valuation results particularly from commodity hedging, working revenue improved to EUR 7.7 billion. The working return on gross sales amounted to 9.0 % (12.3 %). Adjusted for valuation results of EUR -1.4 billion, it rose to 11.0 % (10.6 %).

Model Group Sport Luxurious (Porsche) continued its profitable observe report. Its gross sales income elevated to EUR 37.3 billion (EUR 34.6 billion), whereas the working return on gross sales remained on the earlier yr’s degree of 18.6 % regardless of the headwinds from elevated prices for product launches and better manufacturing prices.

The Monetary Companies Division’s working revenue contributed EUR 3.8 billion to the Group end result however was round a 3rd under the earlier yr’s excessive degree. That is because of the anticipated normalization of used automotive costs. In 2021 and 2022, the residual values of used vehicles rose to unprecedented ranges because of the semiconductor-related shortages of latest autos. The group acknowledged early on that this degree wouldn’t be sustainable and deliberate accordingly.

Model Group Vehicles (TRATON: MAN, Scania, Navistar, Volkswagen Truck & Bus) elevated gross sales to EUR 45.7 billion (EUR 39.5 billion) as a result of greater volumes, a optimistic market and product combine, higher unit costs and development within the car service enterprise. The TRATON Group considerably improved its working margin to eight.1 % (4 %) with an working revenue of EUR 3.7 billion (EUR 1.6 billion).

At CARIAD, income from contract licenses rose by round 30 % to EUR 1.1 billion, because the software program is being utilized in more and more extra Group autos, as deliberate. Because of the enterprise mannequin, this division recorded an working lack of EUR 2.4 billion, as CARIAD makes vital advance funds for future software program architectures, that are remunerated through license funds. In operational phrases, the Group within the software program space has targeted on launching vital merchandise such because the Porsche Macan Electrical and the Audi Q6 e-tron this yr.

The event of the battery enterprise can also be persevering with to make progress. Nonetheless, greater investments and the prices of organising groups in varied international locations led to an working lack of EUR 0.4 billion and a web money outflow of EUR 0.8 billion. This pertains to investments within the Group’s battery actions, that are important for the profitable ramp-up of electrical car manufacturing.

Holistic method to sustainability by way of regenerate+

The Volkswagen Group takes a holistic method to sustainability: by way of nature, workers, society and value-creating entrepreneurship. The Group has subsequently established a holistic sustainability technique. It applies Group-wide and is the premise for formidable sustainability packages of all Group manufacturers.

A key lever for decreasing emissions is the ramp-up of electromobility. With its sustainability technique, Volkswagen Group 2024 is offering vital impetus and assuming duty. For instance, it’s driving ahead one of the vital formidable e-offensives within the automotive business throughout all car segments.

Manufacturing is more and more coming into focus. The Volkswagen Group is aiming to attain steadiness sheet carbon neutrality in any respect manufacturing websites worldwide by 2040 – ten years sooner than deliberate. The goal is to cut back 90 % of all greenhouse fuel emissions in comparison with 2018. The Group intends to attain this by changing its vitality provide and rising vitality effectivity, amongst different measures. For instance, by 2030, one hundred pc of the exterior electrical energy provide in any respect places, together with China, is to return from CO2-neutral sources.All European places are already provided with one hundred pc inexperienced electrical energy. Eight vegetation in Europe already function on steadiness sheet carbon-neutral foundation.

The paperwork for Volkswagen Group’s annual press convention might be obtainable from March 13, 7:30 a.m. on the next web site: https://www.volkswagen-group.com/en/volkswagen-group-annual-media-analyst-and-investor-conference-on-march-13-2024-18144



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