- Effects of Covid-19 successfully contained: effective crisis management, rapid recovery in core Chinese market and particularly robust premium and financial services business key to strong performance
- Sales revenue of EUR 222.9 billion (–11.8 percent) outperforming sales volumes (–16.4 percent)
- Operating profit before special items achieves solid level of EUR 10.6 billion (–45.0 percent) despite unprecedented pandemic, including EUR 0.5 billion for restructuring measures
- Automotive Division: robust business model and rigorous working capital management yield strong net cash flow of EUR 6.4 (10.8) billion; net liquidity develops very positively and climbs to EUR 26.8 (21.3) billion
- Board of Management and Supervisory Board propose unchanged dividend of EUR 4.80 per ordinary share and EUR 4.86 per preferred share, which would give a payout ratio of 29.0 percent
- Outlook for 2021: marked rise in deliveries expected with a significant increase in sales revenue year-on-year; operating return on sales probably between 5.0 and 6.5 percent, striving for higher end of the range
Volkswagen Group closes 2020 stronger than expected and accelerates transformation
The Volkswagen Group closed fiscal year 2020 stronger than expected despite the Covid-19 pandemic. Important strategic steps accelerated the Group’s transformation into a tech company at the same time. The Group’s effective crisis management, the rapid recovery of its largest single market China and particularly the more stable premium and financial services business were key to the strong performance and successful containment of the pandemic effects. Sales revenue amounted to EUR 222.9 billion (–11.8 percent), outperforming sales volumes (–16.4 percent). Operating profit before special items (diesel) reached a solid level of EUR 10.6 billion (–45.0 percent) despite the pandemic. The operating return on sales before special items stood at 4.8 (7.6) percent. The robust business model and rigorous working capital management produced a strong net cash flow of EUR 6.4 billion (–41.3 percent) in the Automotive Division. The net liquidity of the Automotive Division could be lifted by 25.9 percent to a very solid EUR 26.8 billion. The Board of Management and Supervisory Board are proposing an unchanged dividend of EUR 4.80 per ordinary share and EUR 4.86 per preferred share. This would take the payout ratio of 29.0 percent close to the strategic target level of 30 percent. Earnings per ordinary share were EUR 16.60 (26.60) and earnings per preferred share were EUR 16.66 (26.66).