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VOLKSWAGEN AG (FRA:VOW3) EQS-Adhoc: VOLKSWAGEN AKTIENGESELLSCHAFT: Support for information and consultation process at Brussels site resolved, adjustment of annual forecast as a result and other unplanned expenses in the Group

Transparency directive : regulatory news

09/07/2024 19:15

EQS-Ad-hoc: VOLKSWAGEN AKTIENGESELLSCHAFT / Key word(s): Strategic Company Decision/Change in Forecast
VOLKSWAGEN AKTIENGESELLSCHAFT: Support for information and consultation process at Brussels site resolved, adjustment of annual forecast as a result and other unplanned expenses in the Group

09-Jul-2024 / 19:15 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


The Supervisory Board of AUDI AG resolves to support an information and consultation process at the Brussels site. In this process, the Board of Management of Audi Brussels S.A./N.V. will work together with the responsible social partners to develop solutions for restructuring the site. At the end of this process, the plant may among other things be closed down. Expected expenses from these matters and other unplanned expenses in the Volkswagen Group have resulted in an adjustment to the 2024 forecast.

The Board of Management of Volkswagen AG has been informed today that the Supervisory Board of AUDI AG, against the background of the development of demand for the Audi Q8 e-tron model family in certain markets, has decided at its meeting today to support an information and consultation process at the Brussels site as required by Belgian law. In this process, the Board of Management of Audi Brussels S.A./N.V. is working together with the responsible social partners to develop solutions for the site. At the end of this process, the site may among other things be closed down. The expenses expected as a result of alternative uses or a plant closure, which are expected to be accrued in the third quarter, in conjunction with the other unplanned expenses in the Volkswagen Group, will have a significant impact on the operating result of the Volkswagen Group in the 2024 financial year.

The other unplanned expenses comprise various items that had a negative impact on the Volkswagen Group's operating result in the second quarter. These resulted, among other things, from exchange rate losses in connection with the deconsolidation of Volkswagen Bank Rus in the Financial Services Division and from expenses in connection with the planned closure of the gas turbine business of MAN Energy Solutions. In addition, as announced in April, Volkswagen recognized provisions of €0.9 billion for termination agreements as part of the sustainable reduction in administrative personnel costs at Volkswagen AG.

In total, all of the aforementioned matters will lead to a total burden on the operating result of up to €2.6 billion in the 2024 financial year, with the matters mentioned in the last paragraph already being recognized as expenses in the second quarter.

The effects mainly relate to the Volkswagen Group, the Brand Group Core, the Brand Group Progressive and the Financial Services Division. The Brand Group Sport Luxury (Porsche AG) and the Brand Group Trucks (TRATON SE) are not affected by the aforementioned expenses.

In view of the additional earnings effects of up to €1.7 billion above and beyond the termination agreements at Volkswagen AG, Volkswagen Group does not expect to be able to compensate for these in the current financial year and is therefore adjusting the annual forecast for 2024 for the Volkswagen Group and the Passenger Cars Business Area and now expects an operating return on sales in the range of 6.5% and 7.0% (previously: 7.0% to 7.5%). The forecast for the other key figures remains unchanged.

Volkswagen will publish its half-year financial report on August 1. Definitions of operating profit, net cash flow and net liquidity can be found in the 2023 Annual Report on pages 100ff.



End of Inside Information

09-Jul-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com


Language: English
Company: VOLKSWAGEN AKTIENGESELLSCHAFT
Berliner Ring 2
38440 Wolfsburg
Germany
Phone: +49 (0)5361 9 - 49015
Fax: +49 (0)5361 9 - 30411
E-mail: lars.korinth@volkswagen.de
Internet: www.volkswagenag.com/ir
ISIN: DE0007664039, DE0007664005
WKN: 766403, 766400
Indices: DAX, Euro Stoxx 50
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange
EQS News ID: 1942111

 
End of Announcement EQS News Service

1942111  09-Jul-2024 CET/CEST

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