Segment reporting

Segments are identified on the basis of the Volkswagen Group’s internal management and reporting. In line with the Group’s multibrand strategy, each of its brands (operating segments) is managed by its own board of management. The Group targets and requirements laid down by the Board of Management of Volkswagen AG must be complied with. Segment reporting comprises four reportable segments: Passenger Cars, Commercial Vehicles, Power Engineering and Financial Services. The operating segments are combined into reportable segments based on similar economic characteristics (in particular the nature of the products or services, integration in the development, production and sales processes, and similar customer groups).

The activities of the Passenger Cars segment cover the development of vehicles and engines, the production and sale of passenger cars, and the corresponding genuine parts business. As a rule, the Volkswagen Group’s individual passenger car brands are combined on a consolidated basis into a single reportable segment.

The Commercial Vehicles segment primarily comprises the development, production and sale of light commercial vehicles, trucks and buses, the corresponding genuine parts business and related services.

The activities of the Power Engineering segment consist of the development and production of large-bore diesel engines, turbo compressors, industrial turbines and chemical reactor systems, as well as the production of gear units, propulsion components and testing systems.

The activities of the Financial Services segment comprise dealer and customer financing, leasing, banking and insurance activities, fleet management and mobility services.

Purchase price allocation for companies acquired is allocated directly to the corresponding segments.

At Volkswagen, segment profit or loss is measured on the basis of operating profit or loss.

In the segment reporting, the share of the profits or losses of joint ventures is contained in the share of profits and losses of equity-accounted investments in the corresponding segments.

The reconciliation contains activities and other operations that by definition do not constitute segments. It also includes the unallocated Group financing activities. Consolidation adjustments between the segments are also contained in the reconciliation.

Investments in intangible assets, property, plant and equipment, and investment property are reported net of investments under finance leases.

As a matter of principle, business relationships between the companies within the segments of the Volkswagen Group are transacted at arm’s length prices.

  (XLS:) Download

REPORTING SEGMENTS 2014

 

 

 

 

 

 

€ million

 

Passenger Cars

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

150,677

 

24,999

 

3,727

 

22,594

 

201,996

 

462

 

202,458

Intersegment sales revenue

 

13,389

 

5,206

 

5

 

2,327

 

20,927

 

−20,927

 

Total sales revenue

 

164,065

 

30,205

 

3,732

 

24,920

 

222,922

 

−20,464

 

202,458

Depreciation and amortization

 

9,549

 

2,133

 

361

 

4,521

 

16,564

 

−125

 

16,439

Impairment losses

 

209

 

69

 

1

 

127

 

406

 

44

 

450

Reversal of impairment losses

 

27

 

1

 

 

4

 

31

 

 

31

Segment profit or loss (operating profit or loss)

 

11,578

 

901

 

44

 

1,917

 

14,439

 

−1,742

 

12,697

Share of profits and losses of equity-accounted investments

 

3,763

 

14

 

6

 

31

 

3,814

 

174

 

3,988

Net interest income and other financial result

 

−1,053

 

261

 

−8

 

17

 

−783

 

−1,107

 

−1,891

Equity-accounted investments

 

7,186

 

399

 

22

 

433

 

8,039

 

1,835

 

9,874

Investments in intangible assets, property, plant and equipment, and investment property

 

14,039

 

1,851

 

166

 

517

 

16,574

 

39

 

16,613

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REPORTING SEGMENTS 2015

 

 

 

 

 

 

€ million

 

Passenger Cars

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

158,533

 

24,382

 

3,769

 

26,416

 

213,100

 

192

 

213,292

Intersegment sales revenue

 

16,170

 

6,063

 

6

 

2,940

 

25,180

 

−25,180

 

Total sales revenue

 

174,703

 

30,445

 

3,775

 

29,357

 

238,279

 

−24,987

 

213,292

Depreciation and amortization

 

10,389

 

2,162

 

360

 

5,543

 

18,455

 

−136

 

18,319

Impairment losses

 

635

 

38

 

10

 

636

 

1,319

 

38

 

1,357

Reversal of impairment losses

 

16

 

1

 

 

3

 

20

 

1

 

21

Segment profit or loss (operating profit or loss)

 

−4,874

 

586

 

123

 

2,236

 

−1,929

 

−2,139

 

−4,069

Share of profits and losses of equity-accounted investments

 

4,129

 

10

 

6

 

21

 

4,166

 

221

 

4,387

Net interest income and other financial result

 

−1,273

 

−565

 

−10

 

75

 

−1,773

 

153

 

−1,620

Equity-accounted investments

 

8,032

 

397

 

 

525

 

8,954

 

1,950

 

10,904

Investments in intangible assets, property, plant and equipment, and investment property

 

15,085

 

2,426

 

198

 

476

 

18,185

 

50

 

18,234

  (XLS:) Download

RECONCILIATION

 

 

 

 

€ million

 

2015

 

2014

 

 

 

 

 

Segment sales revenue

 

238,279

 

222,922

Unallocated activities

 

984

 

1,245

Group financing

 

43

 

34

Consolidation

 

−26,014

 

−21,744

Group sales revenue

 

213,292

 

202,458

 

 

 

 

 

Segment profit or loss (operating profit or loss)

 

−1,929

 

14,439

Unallocated activities

 

161

 

46

Group financing

 

49

 

9

Consolidation

 

−2,349

 

−1,797

Operating result

 

−4,069

 

12,697

Financial result

 

2,767

 

2,097

Consolidated earnings before tax

 

−1,301

 

14,794

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BY REGION 2014

 

 

€ million

 

Germany

 

Europe/ Other markets*

 

North America

 

South America

 

Asia- Pacific

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Excluding Germany.

Sales revenue from external customers

 

39,372

 

83,485

 

27,619

 

13,868

 

38,113

 

202,458

Intangible assets, property, plant and equipment, lease assets and investment property

 

78,147

 

32,665

 

17,489

 

3,324

 

2,548

 

134,174

  (XLS:) Download

BY REGION 2015

 

 

€ million

 

Germany

 

Europe/ Other markets*

 

North America

 

South America

 

Asia- Pacific

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

*

Excluding Germany.

Sales revenue from external customers

 

42,248

 

90,287

 

35,384

 

10,148

 

35,225

 

213,292

Intangible assets, property, plant and equipment, lease assets and investment property

 

81,711

 

34,824

 

22,595

 

2,658

 

3,207

 

144,994

Allocation of sales revenue to the regions follows the destination principle.