Segments are identified on the basis of the Volkswagen Group’s internal management and reporting. In line with its multibrand strategy, each of the Group’s brands is managed by its own board of management. The Group targets and requirements laid down by the Board of Management of Volkswagen AG or the Group Board of Management must be complied with to the extent permitted by law. The segment reporting comprises the four reportable segments of Passenger Cars and Light Commercial Vehicles, Trucks and Buses, Power Engineering and Financial Services.
The activities of the Passenger Cars and Light Commercial Vehicles segment cover the development of vehicles and engines, the production and sale of passenger cars and light commercial vehicles, and the corresponding genuine parts business. As a rule, the individual passenger car brands and light commercial vehicles of the Volkswagen Group are combined on a consolidated basis into a single reportable segment.
The Trucks and Buses segment primarily comprises the development, production and sale of trucks and buses, the corresponding genuine parts business and related services.
The activities of the Power Engineering segment consist of the development and production of large-bore diesel engines, turbo compressors, industrial turbines and chemical reactor systems, as well as the production of gear units, propulsion components and testing systems.
The activities of the Financial Services segment comprise dealer and customer financing, leasing, banking and insurance activities, as well as fleet management.
In the expanded segment structure, purchase price allocation for companies acquired is allocated directly to the corresponding segments.
The business of Porsche AG acquired in fiscal year 2012 is allocated to the Passenger Cars and Light Commercial Vehicles segment, with the exception of Porsche’s financial services activities, which are presented in the Financial Services segment.
The Ducati Group is allocated to the Audi operating segment and is thus presented in the Passenger Cars and Light Commercial Vehicles reporting segment.
At Volkswagen, segment profit or loss is measured on the basis of operating profit or loss.
In the segment reporting, the share of the profits or losses of joint ventures is contained in the share of profits and losses of equity-accounted investments in the corresponding segments.
The reconciliation contains activities and other operations that do not by definition 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 under finance 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.
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REPORTING SEGMENTS 2011 |
|
|
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
Passenger Cars and Light Commercial Vehicles |
Trucks and Buses |
Power Engi- |
Financial Services |
Total segments |
Recon- |
Volkswagen Group | |||||||
Sales revenue from external customers |
130,061 |
11,529 |
662 |
15,784 |
158,037 |
1,300 |
159,337 | |||||||
Intersegment sales revenue |
8,630 |
194 |
– |
1,461 |
10,285 |
–10,285 |
– | |||||||
Total sales revenue |
138,692 |
11,723 |
662 |
17,244 |
168,322 |
–8,985 |
159,337 | |||||||
Depreciation and amortization |
6,302 |
844 |
65 |
2,412 |
9,623 |
52 |
9,675 | |||||||
Impairment losses |
640 |
1 |
– |
96 |
737 |
6 |
744 | |||||||
Reversal of impairment losses |
81 |
– |
– |
5 |
85 |
– |
85 | |||||||
Segment profit or loss |
9,886 |
937 |
–6 |
1,298 |
12,115 |
–844 |
11,271 | |||||||
Share of profits and losses of equity-accounted investments |
2,458 |
–22 |
0 |
133 |
2,570 |
–396 |
2,174 | |||||||
Net interest income and other financial result |
–438 |
222 |
10 |
–30 |
–235 |
5,716 |
5,481 | |||||||
Equity-accounted investments |
7,824 |
610 |
22 |
1,793 |
10,249 |
– |
10,249 | |||||||
Investments in intangible assets, property, plant and equipment, and investment property |
9,011 |
475 |
33 |
158 |
9,676 |
77 |
9,753 |
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REPORTING SEGMENTS 2012 |
|
|
| |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
Passenger Cars and Light Commercial Vehicles |
Trucks and Buses |
Power Engi- |
Financial Services |
Total segments |
Recon- |
Volkswagen Group | |||||||
Sales revenue from external customers |
148,157 |
20,261 |
4,222 |
18,151 |
190,790 |
1,886 |
192,676 | |||||||
Intersegment sales revenue |
9,917 |
306 |
12 |
1,703 |
11,938 |
–11,938 |
– | |||||||
Total sales revenue |
158,074 |
20,567 |
4,234 |
19,854 |
202,728 |
–10,052 |
192,676 | |||||||
Depreciation and amortization |
7,554 |
1,932 |
508 |
3,053 |
13,047 |
–50 |
12,997 | |||||||
Impairment losses |
72 |
12 |
0 |
102 |
186 |
11 |
197 | |||||||
Reversal of impairment losses |
65 |
– |
– |
3 |
68 |
–8 |
60 | |||||||
Segment profit or loss |
10,778 |
358 |
161 |
1,586 |
12,883 |
–1,373 |
11,510 | |||||||
Share of profits and losses of equity-accounted investments |
13,512 |
–93 |
4 |
145 |
13,568 |
– |
13,568 | |||||||
Net interest income and other financial result |
–689 |
–35 |
–4 |
–140 |
–868 |
1,283 |
414 | |||||||
Equity-accounted investments |
4,906 |
446 |
22 |
1,935 |
7,309 |
– |
7,309 | |||||||
Investments in intangible assets, property, plant and equipment, and investment property |
11,576 |
1,028 |
181 |
222 |
13,007 |
101 |
13,108 |
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RECONCILIATION |
|
| ||
---|---|---|---|---|
€ million |
2012 |
2011 | ||
Segment sales revenue |
202,728 |
168,322 | ||
Unallocated activities |
3,086 |
2,303 | ||
Group financing |
37 |
34 | ||
Consolidation adjustments |
–13,176 |
–11,322 | ||
Group sales revenue |
192,676 |
159,337 | ||
|
|
| ||
Segment profit or loss (operating profit or loss) |
12,883 |
12,115 | ||
Unallocated activities |
105 |
70 | ||
Group financing |
–25 |
–3 | ||
Consolidation adjustments |
–1,453 |
–912 | ||
Operating profit |
11,510 |
11,271 | ||
Financial result |
13,982 |
7,655 | ||
Consolidated profit before tax |
25,492 |
18,926 |
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BY REGION 2011 |
| |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
Germany |
Europe and Other Regions1 |
North America |
South America |
Asia/ Oceania |
Total | ||||||||||
| ||||||||||||||||
Sales revenue from external customers |
34,600 |
69,291 |
17,553 |
14,910 |
22,983 |
159,337 | ||||||||||
Intangible assets, property, plant and equipment, leasing and rental assets, and investment property2 |
30,705 |
26,144 |
9,651 |
3,556 |
962 |
71,017 |
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BY REGION 2012 |
| |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
Germany |
Europe and Other Regions* |
North America |
South America |
Asia/ Oceania |
Total | ||||||||
| ||||||||||||||
Sales revenue from external customers |
37,734 |
77,650 |
25,046 |
18,311 |
33,936 |
192,676 | ||||||||
Intangible assets, property, plant and equipment, leasing and rental assets, and investment property |
73,075 |
30,084 |
10,930 |
3,640 |
1,321 |
119,049 |
Allocation of sales revenue to the regions follows the destination principle.