Volkswagen Financial Services Chairman Lars Henner Santelmann: 2015 was both an eventful and an outstanding financial year

• Operating result: 1.9 billion euros (+12.9%)
• Total assets: 157.9 billion euros (+14.9%)
• Portfolio: 16.6 million contracts (+11.4%) 

Braunschweig/Frankfurt am Main, 16-Mar-2016 — /EuropaWire/ — Volkswagen Financial Services have again grown substantially during the 2015 financial year. At this year’s annual press conference, the Chairman of the Board of Management of Volkswagen Financial Services AG, Lars Henner Santelmann reported: “2015 was both an eventful and an outstanding financial year for Volkswagen Financial Services. With a figure of 1.9 billion euros, we achieved the best operating result ever.” Santelmann expressed his delight at the significant improvements in almost all key financial indicators for the financial services business division of the Volkswagen Group: total assets increased to 157.9 billion euros (+14.9%) and the portfolio of current contracts including all joint ventures rose to 16.6 million contracts (+11.4%). Chief Financial Officer Frank Fiedler added: “For the 2016 financial year, we are expecting a very good result again that will at least be at the level of the previous record of 1.7 billion euros attained in 2014.”

All business units have contributed towards the rise in overall current contracts. The main drivers of growth proved to be insurance and services such as maintenance and wear & tear or tyre services, which are of particular importance for the fleet business, among other seg-ments. As at 31.12.2015, the insurance portfolio amounted to 5.1 million contracts, an in-crease of almost 19 percent. The level of current service contracts went up 12.5 percent to 2.7 million. The overall figure for new contracts acquired in the segments financing, leasing, insurance and services rose to 6.8 million during the last financial year, an increase of almost five percent. The customer deposits invested with Volkswagen Financial Services amounted to around 28.1 billion euros (2014: 26.2 billion euros) as at 31.12.2015, a plus of 7.2%. At the end of last year Volkswagen Financial Services had 15,182 employees, which is 4.6% more than the previous year’s figure. 6,513 of them were working in Germany.

The first nine months of outstanding business performance were followed by a fourth quarter that was significantly overshadowed by the diesel emissions issue. For Volkswagen Financial Services, four specific fields of action emerged as an immediate consequence:

• Firstly, Volkswagen Financial Services developed a trust campaign to rebuild confi-dence together with the Volkswagen Group brands. In Germany and many other Eu-ropean countries, attractive new offers were made available to customers with com-ponents such as extended warranty, maintenance and inspection or special financing conditions.
• Secondly, extensive reserves were set aside on the basis of the existing leasing port-folio so as to be prepared for a possible decline in the residual values. In the case of new contracts, the measures of the trust offensive have a stabilising effect on the re-sidual value.
• Thirdly, Volkswagen Financial Services have benefited in their refinancing activities from their successful diversification-based strategy.
• Fourthly, the exceptional situation has been taken as an opportunity not only to exploit the potential for short-term cost reduction but also to effect sustainable improvements in efficiency.

The new strategy ROUTE2025 has also helped Volkswagen Financial Services cope with the diesel emissions issue. It describes the most important areas of activity and fields of growth for the future. When successfully implemented, it should make the company’s business mod-el even more independent of any fluctuations in individual segments. The topic of digitalisation is particularly important in ROUTE2025. “By 2020 we’ll be selling all our key products online as well,” said Santelmann. “With such a development, we are not only responding to changing customer needs, but we are also able to open up new customer and product segments. These include financing, insurance and services for used cars that are not sold through the dealerships,” Santelmann added.

Volkswagen Financial Services see a fourth growth dimension in this new sales and distribu-tion channel. “In addition to what is already a broad-based position with the three growth drivers Products, Brands and Markets, we are now making our company additionally fit for the future,” Santelmann explained and declared the objective of expanding the portfolio to 30 million contracts by 2025. Santelmann looked optimistically to the future thanks to the com-pany’s good strategic position: “We will courageously embrace the opportunities for growth available to us. I therefore see excellent prospects ahead for Volkswagen Financial Services.”

Information for editors
Volkswagen Financial Services are a business division of the Volkswagen AG group of com-panies and comprise Volkswagen Financial Services AG along with its associated companies and the financial service companies in the USA, Canada, Argentina and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania and Porsche brands 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 15,182 employees worldwide – including 6,513 alone in Germany (as at: 31.12.2015). Volkswagen Financial Ser-vices reported total assets of around EUR 157.9 billion, an operating result of EUR 1.9 billion euros and a portfolio of around 16.6 million current contracts.

Contacts for press inquiries:

Volkswagen Financial Services
Marc Siedler (Press Officer)
Tel.: + 49 5 31 / 2 12-876 75
E-mail: marc.siedler@vwfs.com
www.vwfs.com

Stefan Voges (Press Officer)
Tel.: + 49 5 31 / 2 12-26 21
E-mail: stefan.voges@vwfs.com
www.vwfs.com

Malte Krause (Press Officer)
Tel.: + 49 5 31 / 2 12-5574
E-mail: malte.krause@vwfs.com
www.vwfs.com