Group Management Report

VOLKSWAGEN GROUP CUSTOMER DELIVERIES WORLDWIDE
(in millions)

What you'll find in this chapter:

The Emissions Issue

Providing effective technical solutions. Getting to the root of what happened and learning from it. Taking advantage of the opportunity for a fundamental realignment.

Goals and Strategies

The Volkswagen Group aims to increase its unit sales and profitability for the long term.

Internal Management System and Key Performance Indicators

Based on the goals set out in our Strategy 2018, this chapter describes how the Volkswagen Group is managed and the key performance indicators used for this.

Structure and Business Activities

This chapter describes the legal and organizational structure of the Volkswagen Group and explains the material changes in 2015 with respect to equity investments.

Corporate Governance Report

Corporate governance stands for responsible, transparent corporate management and supervision that aims to add by long-term value.

Remuneration Report

The Remuneration Report details the individualized remuneration of the Board of Management and the Supervisory Board of Volkswagen AG, broken down into components, as well as individualized pension provision disclosures for the members of the Board of Management.

Executive Bodies

Members of the Board of Management and their Appointments.

Disclosures Required Under Takeover Law

In this section, we present the disclosures relating to takeover law required by sections 289(4) and 315(4) of the HGB.

Business Development

In fiscal year 2015, the global economy grew at a moderate rate, slightly below that of the previous year.

Shares and Bonds

Volkswagen AG’s ordinary and preferred shares significantly underperformed the market as a whole in 2015 in a volatile market environment. The main cause of this development was the emissions issue.

Results of Operations, Financial Position and Net Assets

The Volkswagen Group’s operating result was down considerably year-on-year in 2015 due to charges in connection with the emissions issue, and restructuring measures in the trucks business and in the passenger cars area in South America. Sales revenue increased.

Summary

The Board of Management of Volkswagen AG considers business development and the economic position to have been strained.

Volkswagen AG

Production, unit sales and sales up on 2014 levels. Emissions issue leads to net loss for the year.

Sustainable Value Enhancement

Volkswagen does not tolerate any infringements of rules or laws. We will do everything in our power to earn our Stakeholders’ trust back. We strive for a comprehensive realignment. Our goal is to run our business responsibly along the entire value chain. Everyone should benefit from this – our customers, our employees, the environment and society.

Report on Expected Developments

Growth in the global economy in 2016 is expected to be on a level with the previous year. We estimate global demand for vehicles will be mixed in 2016 and increase at a slower rate than in the reporting period.

Report on Risks and Opportunities

Promptly identifying the risks and opportunities arising from our operating activities and taking a forward-looking approach to managing them is crucial to our Company’s long-term success.

Prospects for 2015

The Volkswagen Group’s Board of Management expects the global economy to record the same level of growth in 2016 as in the previous year.

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