Summary of business development and economic position

In view of the political and economic developments in 2022 and the transformation of the industry, the Board of Management of Volkswagen AG considers business development and the economic position challenging, but positive overall.

In the reporting period, the Volkswagen Group’s business was impacted by the global economic slowdown, the limited availability of parts and disruptions in the logistics chain. As a result, we had to adjust some aspects of our forecast. In this environment, we consequently delivered 8.3 million vehicles in the past fiscal year to customers and thereby fewer than planned.

The Group’s sales revenues rose – in line with our expectations – by 11.6%, which was primarily due to prices, product mix and exchange rate effects as well as the good performance in the Financial Services Division.

The operating result before special items increased to €22.5 billion. The operating return on sales before and after special items was 8.1% and 7.9% respectively, and thus within the forecast range.

Research and development costs reflect our activities undertaken to safeguard the Company’s future viability. The R&D ratio in the Automotive Division met our adjusted expectations at 8.1%.

The ratio of capex to sales for the Automotive Division was on a level with the forecast at 5.5%.

Net cash flow amounted to €4.8 billion and therefore fell short of the previous year’s level; this was mainly attributable to cash tied up in working capital, caused in particular by disruptions in the supply chain.

Net liquidity stood at €43.0 billion at the end of fiscal year 2022, exceeding the originally expected range thanks to the cash inflow from the successful IPO of Porsche AG.

Return on investment (ROI) in the Automotive Division improved to 12.0% and was therefore, as anticipated, above our minimum required rate of return on invested capital.