affected by the new crown pneumonia epidemic, the Volkswagen Group 2019 fiscal year earnings conference in 2020, March 17 (Beijing time) via Webcast form held. According to results, the Volkswagen Group’s 2019 fiscal year, the annual sales revenue of 2,526 million euros, an increase of 16.8 billion euros over the previous year; excluding special charges operating profit amounted to 19.3 billion euros, up from 17.1 billion in fiscal year 2018 euro; excluding special charges of operating return on sales was 7.6 percentage, slightly higher than the target range set by the fiscal year 2019 (fiscal year 2018 was 7.3 percent). Operating profit also increased to 17 billion euros (2018 fiscal year was 13.9 billion euros), a special project of diesel engine emissions caused by the incident reduce expenditures 2.3 billion euros. Net cash flow automotive business increased significantly to 10.8 billion euros, fiscal year 2018 was -3 million euros; net current assets rose to 21.3 billion euros, fiscal year 2018 was 194 million euros. Management Board and the Supervisory Board proposed that the ordinary dividend per share of 4.80 euros last year increased to 6.50 euros, per share of preferred stock dividend of EUR 4.86 last year increased to 6.56 euros.
Volkswagen Automotive Group Management Board Chairman Herbert middot; diss
However, in the day of the conference site, Chairman of the Management Board of the Volkswagen Group Hz Bert middot; Diskin’s speech, repeatedly praised China for decisive and effective disease prevention and control, resulting in the Volkswagen factory in China currently has nearly all begin to return to work, sales began to recover, which is estimated this year in China market Volkswagen will still achieve good results, if pessimistic, Volkswagen entire fiscal year 2020 sales in China fell 3, or percentage. But Judith frankly, compared to China, Europe is limited by different national conditions, it is impossible to do the same as China’s strong prevention measures, so the impact of the epidemic to the public caused by global business will be temporarily unable to predict.
2019 fiscal year, cash flow back into the car business is developing accounting edged down
results, one of the driving force of the Volkswagen Group’s 2019 operating profit growth in fiscal year due to a small amount of customer delivery growth, reaching 1,0.97 million (up 1.3 percent). Customers in Europe and South American market is particularly significant growth in deliveries, North America and Asia-Pacific regional markets due to the downward trend in the overall market and a slight decline. At the same time, the Group expanded market share in almost all regions have. Sales rose, optimizing product mix and strong performance of the financial services sector have a positive impact on the sales revenue, and offset the negative impact of exchange rates brought about. Pre-tax profit increased by 17.3 percentage, reaching 18.4 billion euros; pre-tax operating return on sales increased to 7.3 percent (last fiscal year was 6.6 percent). Although the Chinese market is facing challenges, but the operating profit of the group obtained from the Chinese joint venture is still basically reached the level of the previous fiscal year, to 4.4 billion euros (previous fiscal year to 4.6 billion euros).
The net cash flow of the automotive business of 10.8 billion euros, from the previous fiscal year to obtain significant growth compared. This is mainly due to increase profits, reduce diesel engine emissions by the events leading to the cash expenditures, and inventory growth is slowing down. Despite the International Financial Reporting Standards No. 16 (leasing) of the negative effects, but compared with the previous fiscal year, net current assets Motor Vehicle business is good, increased to 21.3 billion euros (2018 fiscal year was 19.4 billion euros). In addition, the ratio of R & D spending (R & D costs as a percentage of sales revenue) slightly lower than the 6.8 percentage last fiscal year, down 6.7 percentage. Capital expenditure ratio remained at 6.6 percentage similar to last year.
Porsche won the first prize profit margins, losses Bentley, Audi overweight technology, SEAT suspended into China
specific to each sub-brand performance, the Volkswagen brand sales in 2019 reached 88.4 billion euros, an increase of 4.5 percentage over the previous fiscal year. Excluding special charges operating profit increased to 3.8 billion euros (2019 fiscal year was 3.2 billion euros). Optimization of product mix and price positioning to bring a positive impact to overall performance, offsetting the sales decline, the negative impact of market costs and unfavorable currency effects brought about. Excluding special charges of operating return on sales increased to 4.3 percent (fiscal year 20183.8 percent). Diesel engine emissions event caused a special class project expenditures of 1.9 billion euros (2018 fiscal year, the same as the 1.9 billion euros).
2019 Audi brand sales fell to 55.7 billion euros (2018 fiscal year was 59.2 billion euros), the main cause of the decline is being Group multi-brand sales of the company’s resources structural adjustment. Total operating profit of 4.5 billion euros (2018 fiscal year was 4.7 billion euros, not included special charges). Product mix and product cost optimization brought about a positive impact, offset iteration of old and new models, adding new products and new technologies upfront costs, the negative impact of unfavorable exchange rates as well as rising personnel costs brought about. Operating return on sales increased to 8.1 percent (7.9 percentage fiscal year 2018, special charges not included). Lamborghini, Ducati two brands of key financial indicators Naruaodi brand of financial data. In the earnings conference, Chairman of the Management Board of the Volkswagen Group, Herbert middot; Dr. Diskin said that the current ongoing adjustment Audi, the future will bear the vanguard of internal R & D property more groups, and will further implement quot; breakthrough technology, enlightened future quot; brand concept.
Skoda brand in 2019 sales revenue increased by 14.5 percentage reached 19.8 billion euros, thanks in part to the initial consolidation of the Group in India and bear business development. Operating profit increased by 300 million euros to 1.7 billion euros. Sales rise, price positioning and product portfolio optimization brought about a positive impact, more than offset the negative impact of rising costs and increased upfront cost of new product brings. Operating return on sales was 8.4 percentage last fiscal year the figure was 8 percentage.
During the reporting period, the SEAT brand to maintain an upward trend: sales revenue of 11.5 billion euros, sales in the 2018 fiscal year record basis has increased by 12.7 percentage. Operating profit rose to 445 million euros (2018 fiscal year was 254 million euros), also a record high. Product sales and various combinations of effects producedParticularly positive impact. Brand operating return on sales increased to 3.9 percent (2.5 percentage fiscal year 2018). But for the SEAT brand into China matters, Diskin did not give a positive answer, and hinted at Chinese primary goal is to ensure that the public Volkswagen, Skoda brand in China’s competitiveness.
2019 Bentley brand achieved sales of 2.1 billion euros, up 35.1 percentage over last year. Thanks to sales increase, costs associated with ongoing efficiency savings plan, the combined effects of all kinds and the impact of exchange rate trends, the Bentley brand’s operating profit increased to 6,500 million euros (2018 fiscal year to -2.88 million Euro). Brand operating return on sales increased to 3.1 percent (2018 fiscal year -18.6 percent). 2019 fiscal year, Bentley finally realized losses for the winning goal.
2019 fiscal year, Porsche sales revenue increased to 26.1 billion euros (2018 fiscal year was 23.7 billion euros), an increase of 10.1 percentage. Excluding special charges of operating profit increased 2.4 percentage amounted to 4.2 billion euros. Sales, as well as many improvements to optimize product development costs to make up for the negative impact of exchange rate movements and increased cost brought about. Excluding special items, including operating return on sales was 16.2 percent (previous fiscal year to 17.4 percent). During the reporting period, special charges diesel engine emissions caused by the incident was 500 million euros.
VW Commercial Vehicles 2019 fiscal year sales of 11.5 billion euros (2018 fiscal year was 11.9 billion euros), essentially flat with the previous year. Affected by the growth of fixed expenses and new product development costs, operating profit decreased to 510 million euros (2018 fiscal year was 780 million euros). Optimization of product costs had a positive impact. Brand operating return on sales was 4.4 percent (6.6 percentage fiscal year 2018).
Scania products and services in fiscal year 2019 achieved sales of 13.9 billion euros (2018 fiscal year to 13 billion euros). Operating profit increased 24.8 percentage, reaching 1.5 billion euros. In addition to continuing to enhance product sales, continue to strengthen the genuine parts and service business, a lot of improvements and changes in exchange rates also had a positive impact on the operating profit. Operating return on sales was 10.8 percentage reporting period (2018 fiscal year was 9.3 percent).
due to sales growth, Mann Commercial Vehicles 2019 fiscal year revenue grew 4.6 percentage amounted to 12.7 billion euros. Despite the expansion in India’s business restructuring actions had a negative impact, Mann commercial vehicles operating profit rose compared with the same period in 2018, still, up to 402 million euros (2018 fiscal year was 332 million euros). Brand operating return on sales was 3.2 percent (2.7 percentage fiscal year 2018).
Volkswagen Financial Services during the reporting period achieved a sales revenue of 38 billion euros, an increase of 15.8 percentage. Operating profit increased 13.3 percentage, up to 3 billion euros, a record high. Growth comes mainly from business grow.
to determine the influence of China in Europe 2020 and uncertain epidemic
decline in total sales in major markets and the market environment impacts of global epidemic, the Volkswagen Group expects 2020 car deliveries will last market performance remain consistent. Challenges will come from market fluctuations in the economic environment, increased competition, commodity and foreign exchange market exchange rate volatility and tighter carbon emissions standards. In 2020, the Group expects sales to increase by 4 percentage sales business areas will be slightly higher than last year’s level passenger cars. In the passenger business and the Group’s overall operating profits, Volkswagen expected 2020 operating return on sales will be between 6.5 percent to 7.5 percentage. Although sales of commercial vehicles business area declined, but its operating return on sales expected to remain at between 4.0 to 5.0 percentage percentage. Sales revenue in the field of power engineering business is expected to be flat with last year, the operating loss narrowed further. In addition, the Group expects its sales revenue and operating profit are financial services will be flat with 2019.
In addition to the challenge of factors, continued tension in the geopolitical situation and the conflict, including the spread in many countries and regions novel coronavirus infection pneumonia epidemic, etc., many factors can not be ignored, can lead to the expected fiscal year 2020 outlook raised uncertainty. VW admits that under the current form of the fight against SARS in Europe, the future of EuropeChanges in the market to make accurate judgments is almost impossible task.
VW Group expects 2020 capital expenditures and research and development of automobile business as a percentage of sales revenue is expected to be between 6.0 percent to 6.5 percentage. Affected by diesel engine emissions event, the Group will continue in 2020, this spending some of the cash, while mergers and acquisitions brought about due to cash spending will increase significantly. Therefore, the Group net cash flow in 2020 is expected to continue to maintain positive growth, but the overall level will be lower than last year. Excluding the impact of diesel engine emissions events and M & A activity, the Group will continue in fiscal year 2020 to achieve a net cash flow of at least 10 billion euros of the goal.
ID3 will launch on time service to help China fight against SARS experience good
on the entire earnings conference, an important public good is released after pushing the ID3 electric car project, the schedule officially put on the market this summer. Earlier rumors of a software problem, and the current epidemic of interference, this car is not running as scheduled interfere.
In addition, at the press conference, the Volkswagen Group commitment to continue to invest 7 billion euros to increase software development R & D capability. By 2025, the total number of its software development staff will be increased to 10,000. Its research and development efforts will be focused on future-oriented core competencies, such as software development, cloud computing, interoperability and so on.
In this conference, Volkswagen announced that it would gradually close the plant epidemic areas in Europe. Discontinued main purpose is to slow down the spread of the virus, and Guanting work will begin next week. But shutting down the plant’s main focus in Europe, independent of other regions temporarily halt plans. At present, the factory in China has begun to resume production, and consumers have begun to buy cars. Meredith admits: government for effective epidemic control measures, allowing enterprises to resume production in a short time.
He said that the public’s business in China is now back on track. Volkswagen is expected in 2020 China sales will decline 3 percentage. quot; if the epidemic can such as China, are controlled so fast, overcome, we believe that weThe business will soon recover. In addition, the electrification process will not be delayed, but the public will put resources into priority in the electrification process. quot; Meredith admitted.
the public judge the Chinese market will recover faster than other markets. However, the epidemic will have what effect on the entire automotive industry is difficult to predict. quot; in China, the government response was very successful, this can not in Germany, but the German’s response is to bear fruit. But our health care system is not the same with China, so our response is not the same. We believe that the Chinese government measures to control the virus in the early stages is very decisive. In addition China through special approval, special protective measures for supply chain. China’s epidemic has now drawing to a close, soon to begin to resume production and sales. I think that China means to deal with the epidemic is very effective. I believe that our business in China by the end, there will be a very good result. quot; Diskin said in the end of the conference.