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.
€ million |
|
Passenger Cars and Light Commercial Vehicles |
|
Commercial Vehicles |
|
Power Engineering |
|
Financial Services |
|
Total segments |
|
Reconciliation |
|
Volkswagen |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
€ million |
|
Passenger Cars and Light Commercial Vehicles |
|
Commercial Vehicles |
|
Power Engineering |
|
Financial Services |
|
Total segments |
|
Reconciliation |
|
Volkswagen |
||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
||||
|
€ 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 |
||||
|
€ million |
|
Germany |
|
Europe/ |
|
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 |
||||
|
€ million |
|
Germany |
|
Europe/ |
|
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 |
||||||
|
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.