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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. As from the second half of 2021, this segment also includes Navistar.

The Power Engineering segment combines the large-bore diesel engines, turbomachinery, and propulsion components businesses. Until October 2020, it also included the business of Renk.

The activities of the Financial Services segment comprise dealership and customer financing, leasing, 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 2021

€ million

 

Passenger Cars and Light Commercial Vehicles

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

176,492

 

29,046

 

3,277

 

41,006

 

249,821

 

379

 

250,200

Intersegment sales revenue

 

16,274

 

1,046

 

1

 

2,957

 

20,278

 

–20,278

 

Total sales revenue

 

192,767

 

30,092

 

3,278

 

43,963

 

270,099

 

–19,899

 

250,200

Depreciation and amortization

 

15,848

 

2,617

 

245

 

9,159

 

27,870

 

–588

 

27,282

Impairment losses

 

140

 

164

 

13

 

539

 

856

 

1

 

857

Reversal of impairment losses

 

125

 

50

 

1

 

614

 

790

 

–54

 

736

Segment result (operating result)

 

14,614

 

134

 

45

 

6,045

 

20,838

 

–1,563

 

19,275

Share of the result of equity-accounted investments

 

1,808

 

433

 

–9

 

89

 

2,321

 

 

2,321

Interest result and other financial result

 

3,804

 

–142

 

–4

 

–154

 

3,504

 

–4,974

 

–1,470

Equity-accounted investments

 

10,645

 

1,035

 

37

 

814

 

12,531

 

 

12,531

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

 

16,329

 

1,596

 

68

 

159

 

18,152

 

346

 

18,498

REPORTING SEGMENTS 2020

€ million

 

Passenger Cars and Light Commercial Vehicles

 

Commercial Vehicles

 

Power Engineering

 

Financial Services

 

Total segments

 

Recon­ciliation

 

Volkswagen Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

160,674

 

21,114

 

3,638

 

37,223

 

222,649

 

235

 

222,884

Intersegment sales revenue

 

15,310

 

1,042

 

2

 

3,555

 

19,908

 

–19,908

 

Total sales revenue

 

175,984

 

22,156

 

3,640

 

40,778

 

242,557

 

–19,673

 

222,884

Depreciation and amortization

 

15,428

 

2,309

 

379

 

8,647

 

26,763

 

–1,014

 

25,749

Impairment losses

 

370

 

179

 

64

 

742

 

1,355

 

–49

 

1,306

Reversal of impairment losses

 

32

 

1

 

 

204

 

237

 

–8

 

229

Segment result (operating result)

 

8,381

 

–79

 

–482

 

3,012

 

10,832

 

–1,157

 

9,675

Share of the result of equity-accounted investments

 

2,615

 

85

 

–3

 

60

 

2,756

 

 

2,756

Interest result and other financial result

 

–3

 

–170

 

–2

 

–296

 

–471

 

–294

 

–765

Equity-accounted investments

 

8,129

 

1,135

 

29

 

786

 

10,080

 

 

10,080

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

 

15,677

 

1,309

 

147

 

208

 

17,340

 

405

 

17,745

RECONCILIATION

€ million

 

2021

 

2020

 

 

 

 

 

Segment sales revenue

 

270,099

 

242,557

Unallocated activities

 

1,290

 

997

Group financing

 

27

 

27

Consolidation/Holding company function

 

–21,216

 

–20,698

Group sales revenue

 

250,200

 

222,884

 

 

 

 

 

Segment result (operating result)

 

20,838

 

10,832

Unallocated activities

 

–36

 

–28

Group financing

 

–18

 

–8

Consolidation/Holding company function

 

–1,509

 

–1,121

Operating result

 

19,275

 

9,675

Financial result

 

851

 

1,991

Consolidated result before tax

 

20,126

 

11,667

BY REGION 2021

€ million

 

Germany

 

Europe/Other markets1

 

North America

 

South America

 

Asia-Pacific

 

Hedges sales revenue

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

44,452

 

101,118

 

45,305

 

11,039

 

48,672

 

–386

 

250,200

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

 

113,153

 

47,697

 

34,274

 

2,519

 

4,054

 

 

201,697

1

Excluding Germany.

BY REGION 2020

€ million

 

Germany

 

Europe/Other markets1

 

North America

 

South America

 

Asia-Pacific

 

Hedges sales revenue

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue from external customers

 

42,847

 

90,652

 

36,810

 

8,632

 

44,288

 

–345

 

222,884

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

 

105,630

 

47,680

 

23,852

 

2,323

 

3,611

 

 

183,096

1

Excluding Germany.

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.