Volkswagen Group recorded a consolidated loss before and after tax of 1.3bn (£1bn) and 1.4bn respectively for the fiscal year 2015, due to ‘extraordinary charges’.
The largest share of extraordinary charges was provisions for the emissions issue, which amounted to 16.2bn.
The group said that before these charges, operating profit was higher than the prior-year figure at 12.8bn. Consolidated sales revenue rose by 5.4% to 213.3bn, which the company attributed to improvements in the mix in the automotive business and the "strong performance" of the Financial Services division.
"The Volkswagen Group’s operations are in great shape, as the figures before special items for the past fiscal year clearly show," explained the chairman of the board of management, Matthias Müller.
"Were it not for the sizable provisions we made for all repercussions of the emissions issue that are now quantifiable, we would be reporting on yet another successful year overall. The current crisis – as the figures presented today also reveal – is having a huge impact on Volkswagen’s financial position. Yet we have the firm intention and the means to handle the difficult situation we are in using our own resources," Müller added.
The group said its financial situation is favourable, as the sales of shares in Suzuki added 2.8bn to the Automotive Division’s net cash flow, lifting it to 8.9bn. Net liquidity in this division rose to 24.5bn.
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Board of management remuneration
Volkswagen group announced that there will be a significant reduction in variable board of management remuneration.
The group said: "In total, the variable remuneration of an ordinary member of the board of management will fall by 39% (from 5.3m in 2014 to 3.2m in 2015). The amount of variable remuneration actually paid for 2015 will be about 1m lower than this figure (2.2m) or 57% lower than the amount paid for the previous year. This remuneration proposal takes into account the current crisis and also considers that the business of the Group may develop successfully in the future."
Fiscal year 2016
The group’s board of management estimated that deliveries to customers in the fiscal year 2016 will be on a level with the past year due to volume growth in China.
However, it expects revenue to be down as an effect of unfavourable conditions in major markets.
"Depending on the economic conditions – particularly in South America and Russia – and the exchange rate development and in light of the emissions issue, the board of management expects that sales revenue for the Volkswagen Group may be down by as much as 5 percent on the previous year."
In terms of the group’s operating profit, the board of management anticipated an operating return on sales of between 5% and 6%.
Chief financial officer at Volkswagen Group Frank Witter said: "This year we are again operating in an exceedingly challenging environment in which global demand for new vehicles is declining, exchange rates and interest rates remain highly volatile and competition in many of our markets is intensifying. Added to this is the emissions issue, the extensive clarification of which will also be a dominant feature of the Volkswagen Group’s work in the current year. Regardless of this, we are confident that the Volkswagen Group will make good progress on its chosen path."