Annual Report 2023

Notes

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 and Light Commercial Vehicles, Commercial Vehicles, Power Engineering and Financial Services.

The activities of the Passenger Cars and Light Commercial Vehicles segment cover the development of vehicles, engines and vehicle software, the production and sale of passenger cars and light commercial vehicles, and the corresponding genuine parts business. In the Passenger Cars and Light Commercial Vehicles reporting segment, the individual brands are combined into a single reportable segment, in particular as a response to the high degree of technological and economic interlinking in the production network. Furthermore, there is collaboration within key areas such as procurement, research and development or treasury.

The Commercial Vehicles segment primarily comprises the development, production and sale of trucks and buses, the corresponding genuine parts business and related services. As in the case of the passenger car brands, there is collaboration within the areas procurement, development and sales. The aim is to create closer cooperation within the business areas.

The Power Engineering segment combines the large-bore diesel engines, turbomachinery and propulsion components businesses.

The activities of the Financial Services segment comprise dealership and customer financing, leasing, direct banking and insurance activities, fleet management and mobility services. In this segment, activities are combined for reporting purposes taking into particular account the comparability of the type of services and of the regulatory environment.

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 the operating result.

In segment reporting, the share of the result of joint ventures is contained in the result 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 in right-of-use assets from 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.

REPORTING SEGMENTS 2023

€ million

 

Passenger Cars and Light Commercial Vehicles

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Reconcilia­tion

 

Volkswagen
Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

223,152

 

44,725

 

4,043

 

49,998

 

321,918

 

366

 

322,284

Intersegment sales revenue

 

22,528

 

1,007

 

1

 

4,130

 

27,665

 

−27,665

 

Total sales revenue

 

245,680

 

45,731

 

4,044

 

54,128

 

349,584

 

−27,300

 

322,284

Depreciation and amortization

 

14,555

 

2,740

 

134

 

9,970

 

27,400

 

−617

 

26,783

Impairment losses

 

298

 

57

 

9

 

879

 

1,242

 

479

 

1,721

Reversal of impairment losses

 

38

 

5

 

 

444

 

486

 

0

 

486

Segment result (operating result)

 

19,474

 

3,714

 

366

 

3,792

 

27,345

 

−4,769

 

22,576

Share of the result of equity-accounted investments

 

2,112

 

124

 

0

 

55

 

2,291

 

 

2,291

Interest result and other financial result

 

8,248

 

−458

 

23

 

−71

 

7,741

 

−9,414

 

−1,673

Equity-accounted investments

 

8,476

 

1,234

 

17

 

2,512

 

12,239

 

 

12,239

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

 

22,636

 

2,205

 

134

 

282

 

25,257

 

538

 

25,795

REPORTING SEGMENTS 20221

€ million

 

Passenger Cars and Light Commercial Vehicles

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Reconcilia­tion

 

Volkswagen
Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

193,074

 

38,346

 

3,564

 

43,667

 

278,651

 

399

 

279,050

Intersegment sales revenue

 

17,304

 

1,170

 

1

 

2,990

 

21,466

 

−21,466

 

Total sales revenue

 

210,378

 

39,516

 

3,565

 

46,657

 

300,116

 

−21,067

 

279,050

Depreciation and amortization

 

16,004

 

2,885

 

148

 

9,870

 

28,907

 

−656

 

28,251

Impairment losses

 

2,501

 

34

 

2

 

371

 

2,908

 

3

 

2,911

Reversal of impairment losses

 

60

 

4

 

2

 

557

 

623

 

 

623

Segment result (operating result)

 

17,156

 

1,588

 

281

 

5,638

 

24,662

 

−2,553

 

22,109

Share of the result of equity-accounted investments

 

2,186

 

97

 

3

 

116

 

2,403

 

 

2,403

Interest result and other financial result

 

2,277

 

98

 

−4

 

−159

 

2,213

 

−4,655

 

−2,442

Equity-accounted investments

 

10,731

 

1,084

 

18

 

836

 

12,668

 

 

12,668

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

 

20,125

 

1,907

 

84

 

217

 

22,334

 

338

 

22,672

1

Prior-year figures adjusted (see disclosures on IFRS 17 in the “Effects of new and amended IFRSs” section).

RECONCILIATION

€ million

 

2023

 

20221

 

 

 

 

 

Segment sales revenue

 

349,584

 

300,116

Unallocated activities

 

1,599

 

1,405

Group financing

 

24

 

27

Consolidation/Holding company function

 

−28,923

 

−22,498

Group sales revenue

 

322,284

 

279,050

 

 

 

 

 

Segment result (operating result)

 

27,345

 

24,662

Unallocated activities

 

114

 

−2

Group financing

 

10

 

−37

Consolidation/Holding company function

 

−4,894

 

−2,514

Operating result

 

22,576

 

22,109

Financial result

 

618

 

−40

Consolidated result before tax

 

23,194

 

22,070

1

Prior-year figures adjusted (see disclosures on IFRS 17 in the “Effects of new and amended IFRSs” section).

BY REGION 2023

€ million

 

Germany

 

Europe/
Other markets
1

 

North America

 

South America

 

Asia-Pacific

 

Hedges sales revenue

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

59,646

 

128,303

 

67,908

 

17,139

 

50,109

 

−821

 

322,284

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

 

126,254

 

51,605

 

33,520

 

4,586

 

4,750

 

 

220,715

1

Excluding Germany.

BY REGION 20222

€ million

 

Germany

 

Europe/
Other markets
1

 

North America

 

South America

 

Asia-Pacific

 

Hedges sales revenue

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

49,042

 

105,472

 

59,910

 

15,476

 

51,443

 

−2,294

 

279,050

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

 

119,386

 

47,661

 

32,517

 

2,709

 

4,848

 

 

207,121

1

Excluding Germany.

2

Prior-year figures adjusted (see disclosures on IFRS 17 in the “Effects of new and amended IFRSs” section).

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

The allocation of interregional intragroup transactions regarding the segment assets has been presented uniformly according to the economic ownership.