Press Release

Braunschweig, 5 December 2019. Volkswagen Financial Services will be closing the financial year 2019 with a record result again (previous year's figure: EUR 2.61 billion) and increasing their total current portfolio to significantly more than 21 million contracts (previous year: 20.3 million). "Over the last few years, we have undertaken and successfully achieved a great deal with our corporate restructuring, with our cost reduction program, and with our numerous investments in new mobility services. We are keeping our word by systematically implementing our projects and that is one reason why we will be concluding 2019 on a very successful note," says Lars Henner Santelmann, CEO of Volkswagen Financial Services AG. "In addition to the larger volume of current contracts, the first savings achieved through our cost reduction program are already contributing to a year-end operating result for the Volkswagen Financial Services division that is significantly higher than the previous year's figure," says Frank Fiedler, CFO of Volkswagen Financial Services AG.

During the current financial year, Volkswagen Financial Services have made extensive investments in future-oriented areas. "Although global conditions have become more difficult, we have invested massively in expanding our mobility services and therefore in the future of our business," says Santelmann. He adds: "We can today report excellent results and at the same time we are not holding back on investing in our future either."

Volkswagen Financial Services already implemented a cost-cutting and efficiency program, Operational Excellence (OPEX), in 2018. The aim is to save EUR 1.3 billion annually from 2025 onwards as a result. The original savings target was set at EUR 850 million per year. "Cost discipline is a high priority for us. We have got off to such a good start with OPEX that we will already be able to achieve savings this year of around EUR 200 million with a positive impact on our operating result," Fiedler explains. The savings are first and foremost being made by standardizing the IT, by enhancing productivity, and by optimizing sales costs.

Volkswagen Financial Services have carried out considerable investments in future-relevant fields during the current financial year, for example by strengthening their fleet business with the purchase of a majority stake in the fleet management company FleetLogistics and by expanding mobility operations through the complete acquisition of LogPay Financial Services GmbH. In addition, the purchase of a majority shareholding in PTV Truckparking B.V. represents a further investment in the extension of their parking business, Volkswagen Bank GmbH has acquired a stake in the fintech company Credi2 GmbH so as to further automate its lending business, and the used-car platform heycar has expanded into the United Kingdom.

Information for editors:

Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 16,267 employees worldwide – including 7,010 alone in Germany. Volkswagen Financial Services report total assets of around EUR 207.6 billion, an operating result of EUR 2.6 billion and a portfolio of around 20.3 million current contracts (as at: 31.12.2018).