Volkswagen AG: Board of Management finalizes financial statements
WOLFSBURG, Germany--Feb. 1, 20054, 2005--| Annual statement 2004 |
Volkswagen AG: Board of Management finalizes financial statements
Volkswagen's Board of Management finalizes consolidated financial statements. Early adoption of revised IAS 1, 21, 36 and 38, plus the new IFRS 3*):
In 2004, despite a difficult operating environment, the Volkswagen Group exceeded the guidance published in July 2004, both under the new accounting standards applied in 2004 and those applied in 2003. For example, at more than EUR 2,000 million under both sets of accounting standards, operating profit before special items was higher than the forecasted EUR 1,900 million. In addition, the Automotive Division generated a positive net cash flow of EUR 1.9 billion.
Key data 2004 for the Volkswagen Group:
-- Deliveries to customers increased to 5,079 thousand vehicles
-- Operating profit after special items of approximately EUR 1.6 billion (up 1.0 % year-on-year)
-- Net cash flow at the Automotive Division at EUR 1.9 billion clearly positive
-- Automotive Division net liquidity improves by EUR 435 million - despite expenditures of approximately EUR 1 billion for investment in LeasePlan
Goals achieved despite pressure from external factors:
-- Competitive environment remains fierce, exchange rates remain unfavorable
-- Higher prices for raw materials
ForMotion performance improvement program fully on target:
-- Cash flows from investing activities reduced by 16.7 % in the Automotive Division; ratio of investments in property, plant and equipment to sales revenue (capex/sales ratio) reaches target 6.8 %
-- Cash flows from operating activities (Automotive Division) rise by approximately 50 %
-- ForMotion earnings effect in 2004: + EUR 1.6 billion
Group products successful in the market:
-- Market leadership defended in Western Europe, Germany and China
-- Continued new model campaign: Golf GTI, Golf Plus, Caddy Life, Audi A4 and Audi A4 Avant, Audi A6 and Audi A6 Avant, Audi A3 Sportback, SEAT Altea and Toledo, Skoda Octavia and Skoda Octavia Combi, Bentley Continental GT
Financial Services Division results match high level recorded in 2003
The Board of Management's proposal for an unchanged dividend reflects the adjustment of the dividend made in the previous year to reflect earnings development
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January-December 2004*) 2003*) +/- (%)
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Volkswagen Group (IFRS):
Deliveries to customers '000 units 5,079 5,016 + 1.3
Production '000 units 5,093 5,021 + 1.4
Employees Dec. 31 342,502 336,843 + 1.7
Sales revenue EUR million 88,963 84,813 + 4.9
Operating profit
before special items EUR million 2,015 2,297 - 12.3
Special items EUR million 395 692 - 42.9
Operating profit
after special items EUR million 1,620 1,605 + 1.0
Profit before tax EUR million 1,099 1,354 - 18.8
Income tax expense EUR million 383 351 + 9.3
Profit after tax EUR million 716 1,003 - 28.6
Minority interests EUR million - 39 - 23 - 70.7
Profit attributable to
shareholders of
Volkswagen AG EUR million 677 980 - 30.9
Earnings per share
(basic)
- Ordinary shares EUR 1.75 2.54 - 31.1
- Preferred shares EUR 1.81 2.60 - 30.4
Figures before
restatements:
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Sales revenue EUR million 90,368 87,153 + 3.7
Operating profit
before special items EUR million 2,004 2,491 - 19.6
Operating profit
after special items EUR million 1,609 1,780 - 9.6
Automotive Division (including allocation of consolidation adjustments
between Automotive and Financial Services Divisions):
Cash flows from
investing activities EUR million 7,047 8,456 - 16.7
Cash flows from
operating activities EUR million 8,918 5,968 + 49.4
Net cash flow EUR million 1,871 - 2,488 x
Net liquidity EUR million - 1,734 - 2,169 + 20.0
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Volkswagen AG
(German Commercial
Code):
Profit after tax EUR million 505 633 - 20.1
Proposed dividend:
Dividend
- per ordinary share EUR 1.05 1.05
- per preferred share EUR 1.11 1.11
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*) Restated for presentation and measurement changes relating to
revised IASs/IFRSs (detailed explanations at "
http://www.volkswagen-ir.de "). The figures shown reflect the
following changes in accounting standards:
1. Sales revenue including interest income from financing business,
but excluding revenues recognized at inception of finance lease
sales in the Financial Services Division (prior-year figures
restated).
2. 2004 figures no longer contain goodwill amortization.
3. Retrospective change in the method of capitalizing development
costs; certain indirect costs are no longer capitalized.
4. 2004 operating profit before and after special items has risen by
a total of EUR 11 million due to points 2. and 3.
The Annual Press Conference on March 8, 2005 and the International
Investor Conference on March 9, 2005 will be held in Wolfsburg.
Wolfsburg, February 14, 2005 - Volkswagen AG - The Board of Management
VOLKSWAGEN AG
Brieffach 1970
38436 Wolfsburg
Deutschland
ISIN: DE0007664005 (DAX)
WKN: 766400
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