"Looking ahead, we – like the entire industry – are facing major challenges and radical change," said Matthias Müller, CEO of Volkswagen AG. "The excellent financial result provides a strong basis for this and gives us every reason to be confident. In fact, our plan for the future, TOGETHER – Strategy 2025, is taking effect and becoming increasingly tangible."

The increase in the sales revenue of the Volkswagen Group was mainly due to strong unit sales as well as the healthy performance of the Financial Services Division; exchange rates had a negative effect. In fiscal year 2017, the Volkswagen Group recorded operating profit before special items of EUR 17.0 (14.6) billion, and the operating return on sales before special items increased to 7.4 (6.7) percent. The increase was mainly the result of volume-, mix- and margin-related factors as well as improvements in product costs. Special items contained in operating profit totaled EUR –3.2 (–7.5) billion for 2017 as a whole. The special items related exclusively to charges incurred in the Passenger Cars Business Area due to the diesel issue, driven specifically by higher expenses for buy-back and retrofit programs for 2.0 and 3.0 l TDI vehicles in North America as well as higher legal risks. The Group's operating profit after special items stood at EUR 13.8 billion; the operating return on sales rose to 6.0 (3.3) percent.

The share of operating profit attributable to the Chinese joint ventures (EUR 4.7 billion) was down slightly in the reporting period. The business of the Chinese joint ventures is not included in the Group's sales revenue and operating profit because it is accounted for in the financial result using the equity method. The Group's earnings before tax climbed to EUR 13.9 billion in the reporting year, exceeding the prior-year figure by EUR 6.6 billion. Profit after tax in 2017 amounted to EUR 11.6 (5.4) billion.

"The financial statements presented show that our operating business is strong and the Group's financial situation robust," underlined Chief Financial Officer Frank Witter. "Nearly 11 million customers worldwide – more than ever before – opted for a vehicle from one of our brands last year. We are very thankful for this confidence. All the same, we must not relax our efforts because huge challenges lie ahead. Shaping the Group's transformation will not only require a great deal of time and energy; it will also be very expensive. This is why we must continue to keep our expenditure under tight control and advance the necessary innovations at the same time."

As expected, there were high cash outflows in the reporting period due to the diesel issue, primarily for vehicle recalls and legal risks. Net cash flow in the Automotive Division decreased by EUR 10.3 billion year-on-year to EUR –6.0 billion. Nevertheless, net liquidity in the Automotive Division continued at a robust level, amounting to EUR 22.4 billion at the end of 2017.

The Board of Management and Supervisory Board will propose to pay a dividend of EUR 3.90 (previous year: EUR 2.00) per ordinary share and EUR 3.96 (previous year: EUR 2.06) per preferred share at the Annual General Meeting on May 3, 2018.