Volkswagen Group (VOW) Investor presentation summary

Business overview and strategy

• Achieved €322.3bn in sales revenue and 9.2 million vehicle deliveries in 2023, with operations in 150 countries and 114 production facilities worldwide.

• Maintains a unique portfolio spanning volume, premium, luxury passenger cars, leading truck brands, and financial/mobility services.

• Targets 5-7% revenue CAGR, 8-10% return on sales, and a <11% investment ratio by 2027, with a ≥30% payout ratio.

• Implements four technology platforms: architecture (SSP), software (smart partnerships), battery (unified cell), and mobility (integrated platform).

• Strategic focus on regional priorities: China (localized R&D, 15% market share by 2030), Europe (maintain #1), North America (localization, Scout launch), South America (SUV/CUV shift), and India (asset-light growth).

Financial performance and capital allocation

• FY 2023 operating profit reached €22.5bn (7.0% margin), with €10.7bn automotive net cash flow and €40.3bn net liquidity.

• 9M 2024 sales revenue at €237.3bn, operating margin at 5.4%, and net cash flow at €3.3bn; full-year guidance updated to €320bn revenue and €18bn operating profit.

• Investment ratio peaked at 13.5-14.5% in 2024, expected to fall below 11% by 2027 and ~9% by 2030 as electrification/digitalization investments rise.

• Dividend payout ratio committed to ≥30% of net income, with €22bn paid for 2021-2023.

• Maintains strong credit ratings (S&P BBB+, Moody’s A3, Fitch A-) and a well-balanced debt maturity profile.

Brand group and segment performance

• Core brands generated €137.8bn revenue and €7.3bn profit (5.3% margin) in 2023; Progressive (Audi) €69.9bn and €6.3bn (9.0%), Sport Luxury (Porsche) €37.3bn and €6.9bn (18.6%), Trucks €45.7bn and €3.7bn (8.1%).

• 9M 2024 results impacted by restructuring, supply chain shortages, and higher fixed costs, especially in Core and Progressive groups.

• BEV deliveries for 9M 2024 at 507k units (8% share), with softer demand in Europe/US but growth in China.

• JV with Rivian progressing, with up to $5.8bn investment planned through 2027 and first JV tech vehicle expected in 2027.

• Scout Motors launched first SUV and pickup, targeting profitable North American segments.