Volkswagen confirms strategic financial targets of Together 2025+
- Strategic financial targets for operating return on sales, return on investment, capex ratio and R&D cost ratio, net cashflow and net liquidity confirmed.
- Outlook for the current fiscal year 2019 confirmed.
The Volkswagen Group has in principle confirmed the strategic targets set out in its strategy Together 2025+ for operating return on sales, return on investment, capex ratio and R&D cost ratio, net cashflow and net liquidity within the Planning Round 68. “We are continuing to pursue our ambitious strategic financial targets for 2020 and 2025. We also confirm our outlook for 2019. The Volkswagen Group remains very robust in the face of increasingly difficult economic conditions. However, we will have to apply systematic cost discipline to reach our long-term goals,” Frank Witter, the member of the Volkswagen Group Board of Management responsible for Finance and IT, said in describing the impact of Planning Round 68 on the strategic financial targets.
In 2020, the operating profit before special items should remain at 6.5 percent to 7.5 percent. A level of 7 percent to 8 percent is being strived for by 2025. The return on investment in the Automotive Division should be between 12 percent and 14 percent from 2020 onwards and more than 14 percent starting in 2025. The Group will continue to pursue its strategic targets for the capex ratio and the R&D cost ratio. Each should be 6 percent from 2020 onwards. The aim is to achieve net cashflow of at least EUR 10 billion and a net liquidity in the Automotive Division of more than EUR 20 billion by then.