Letter to our Shareholders
Dear Shareholders,
2007 was the most successful year in the history of the Volkswagen Group – our eight strong, independent brands all recorded an outstanding performance. Excellent progress has been made with rising productivity and falling costs in all plants and divisions. Our Financial Services Division also made another significant contribution to consolidated profit. Above all, however, we launched new, outstanding vehicles that not only received an enthusiastic reception within the automotive sector, but also among our customers.
In the past fiscal year, our eight Group brands delivered almost 6.2 million vehicles worldwide: an impressive increase of 7.9 percent and a new sales record. Growth was particularly dynamic in China, South America and Central and Eastern Europe. The Volkswagen Group’s new plants in Kaluga (Russia) and Pune (India) underline our intention to be a proactive player in these growth regions.
Our success is also reflected in our operating profit of € 6.2 billion, up significantly on the previous year. With profit before tax of € 6.5 billion, we reached our target one year earlier than planned. In view of this, we are proposing to increase the dividend to € 1.80 for ordinary shares and € 1.86 for preferred shares.
Our shareholders have also benefited from the strong price performance of Volkswagen AG’s shares. With strong growth of 81.7 percent for ordinary shares and 76.8 percent for preferred shares, our company once again outperformed the DAX (22.3 percent) significantly in 2007.
All in all, we can safely say that the Volkswagen Group is well on course to achieving its goals. We are one of the most forward-looking companies in our sector, with an internationally unique range of brands and models. This is above all due to the skill and commitment of our employees, for which my colleagues on the Board of Management and I would like to express our sincere thanks. For us, innovation, performance and responsibility for the environment and society are inseparably linked. These values are what drives the successful development of the Volkswagen Group, and are reflected throughout the 2007 Annual Report.
Our objective remains to inspire our customers with fascinating vehicles and outstanding vehicle-related services. We also strive to offer our employees stimulating and secure jobs. Last but by no means least, we want to convince our shareholders with strong, profitable growth. By further improving our cost position, we will be able to ensure even greater profitability in future years.
I can assure you that the Volkswagen Group will continue this successful course with the same drive and commitment in years to come. We look forward to continuing this journey in your company.
Yours sincerely,
Martin Winterkorn