Summary of economic position

The Board of Management of Volkswagen AG believes that the Group’s economic position is positive. The Group continued its profitable growth path in fiscal year 2014, again generating record sales revenue and operating profit in an ongoing difficult market environment. We maintained our sustainable cost and investment management policies and the continuous optimization of our processes.

We increased our interest in Scania’s share capital to 99.57% in the reporting period on completion of the voluntary tender offer to acquire all Scania shares not previously held either directly or indirectly. Volkswagen has controlled 100% of the share capital since January 14, 2015. This creates the basis for further synergies to be leveraged in the commercial vehicles area.

The transaction was partially funded by a capital increase, under which new preferred shares were issued from authorized capital against cash contributions, while disapplying shareholders’ preemptive rights. We also strengthened our capital base in fiscal year 2014 with the successful placement of dual-tranche hybrid notes. The Automotive Division’s liquidity position remains strong and gives us financial stability and flexibility.

An overview of the development of the Volkswagen Group over the past five years can be found in the tables of the Key Financial Figures and in the Five-Year Review. More information on the economic position of the Volkswagen Group by brand and business field can be found in the “Divisions” chapter.