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 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. Given the high degree of technological and economic interlinking in the production network of the individual brands, the Passenger Cars reporting segment combines the Volkswagen Group’s individual car brands to a single reportable segment. 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 light commercial vehicles, trucks and buses, the corresponding genuine parts business and related services. Just as in the case of the car brands, there is collaboration within the areas procurement, development and sale. The aim is to achieve further forms of interlinking.

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. In this segment, combinations occur especially while taking into account the comparability of the type of services as well as the regulatory situation permits.

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 the segment reporting, the share of the result of joint ventures is contained in the share of 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 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.

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REPORTING SEGMENTS 2016

 

 

 

 

 

 

€ million

 

Passenger Cars

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

160,461

 

25,385

 

3,590

 

27,884

 

217,320

 

−54

 

217,267

Intersegment sales revenue

 

17,354

 

6,695

 

3

 

3,367

 

27,418

 

−27,418

 

Total sales revenue

 

177,815

 

32,080

 

3,593

 

31,251

 

244,739

 

−27,472

 

217,267

Depreciation and amortization

 

10,846

 

2,293

 

368

 

6,224

 

19,731

 

−159

 

19,572

Impairment losses

 

886

 

126

 

3

 

491

 

1,506

 

−137

 

1,368

Reversal of impairment losses

 

152

 

0

 

 

92

 

245

 

−139

 

106

Segment result (operating result)

 

5,235

 

718

 

−217

 

2,435

 

8,171

 

−1,068

 

7,103

Share of the result of equity-accounted investments

 

3,147

 

25

 

 

64

 

3,236

 

261

 

3,497

Net interest result and other financial result

 

−1,674

 

−379

 

−8

 

−91

 

−2,152

 

−1,157

 

−3,308

Equity-accounted investments

 

7,349

 

418

 

 

849

 

8,616

 

 

8,616

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

 

15,891

 

2,433

 

194

 

357

 

18,875

 

27

 

18,902

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REPORTING SEGMENTS 2017

 

 

 

 

 

 

€ million

 

Passenger Cars

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

169,513

 

27,632

 

3,280

 

30,191

 

230,618

 

64

 

230,682

Intersegment sales revenue

 

18,892

 

7,568

 

3

 

3,541

 

30,004

 

−30,004

 

Total sales revenue

 

188,405

 

35,200

 

3,283

 

33,733

 

260,621

 

−29,939

 

230,682

Depreciation and amortization

 

11,363

 

2,557

 

371

 

6,797

 

21,089

 

−147

 

20,941

Impairment losses

 

704

 

2

 

0

 

574

 

1,280

 

0

 

1,280

Reversal of impairment losses

 

14

 

1

 

 

41

 

56

 

 

56

Segment result (operating result)

 

12,644

 

1,892

 

−55

 

2,673

 

17,153

 

−3,335

 

13,818

Share of the result of equity-accounted investments

 

3,390

 

83

 

1

 

9

 

3,482

 

 

3,482

Net interest result and other financial result

 

−1,920

 

−220

 

−2

 

−180

 

−2,321

 

−1,067

 

−3,388

Equity-accounted investments

 

6,724

 

753

 

18

 

710

 

8,205

 

 

8,205

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

 

15,713

 

1,915

 

159

 

421

 

18,208

 

104

 

18,313

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RECONCILIATION

 

 

 

 

€ million

 

2017

 

2016

 

 

 

 

 

Segment sales revenue

 

260,621

 

244,739

Unallocated activities

 

948

 

749

Group financing

 

25

 

42

Consolidation

 

−30,912

 

−28,263

Group sales revenue

 

230,682

 

217,267

 

 

 

 

 

Segment result (operating result)

 

17,153

 

8,171

Unallocated activities

 

10

 

86

Group financing

 

−16

 

22

Consolidation

 

−3,328

 

−1,176

Operating result

 

13,818

 

7,103

Financial result

 

94

 

189

Consolidated result before tax

 

13,913

 

7,292

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BY REGION 2016

 

 

€ million

 

Germany

 

Europe/Other markets1

 

North America

 

South America

 

Asia-Pacific

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Excluding Germany.

Sales revenue from external customers

 

43,634

 

94,445

 

35,454

 

7,973

 

35,761

 

217,267

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

 

84,525

 

40,717

 

23,958

 

3,320

 

3,064

 

155,583

  (XLS:) Download

BY REGION 2017

 

 

€ million

 

Germany

 

Europe/Other markets1

 

North America

 

South America

 

Asia-Pacific

 

Total

1

Excluding Germany.

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

44,333

 

98,420

 

38,818

 

9,988

 

39,123

 

230,682

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

 

89,594

 

37,050

 

26,076

 

2,851

 

2,812

 

158,384

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