Key performance indicators in accordance with the EU Taxonomy regulation

The EU Taxonomy defines sales revenue, capital expenditure and operating expenditure as the key performance indicators that must be reported on. We explain these below. The tables required by the EU Taxonomy are included at the end of the section.

The figures reported on sales revenue, capital expenditure and operating expenditure relate to the companies consolidated in the Volkswagen Group’s financial statements. Volumes and financial data for our Chinese joint ventures are therefore excluded.

The financial figures relevant for the Volkswagen Group are taken from the IFRS consolidated financial statements for fiscal year 2024. As we differentiate between economic activities, we have avoided double counting. Where possible, the figures within an economic activity have been allocated directly. In our vehicle-related business, for example, we compiled the financial figures based on the vehicle model and powertrain technology. This applies both to the vehicles themselves and to the corresponding financial services and other services and activities. Only where this was not possible for capital expenditure and operating expenditure were allocation formulas used based on the planned vehicle volumes. In the Power Engineering Business Area, we used allocation formulas based on planned sales revenue. This data and planning form part of the medium-term financial planning for the next five years on which the Board of Management and Supervisory Board have passed a resolution.

Sales revenue

The definition of turnover in the EU Taxonomy corresponds to sales revenue as reported in the IFRS consolidated financial statements. This amounted to €324.7 billion in fiscal year 2024 (see also note on “Sales revenue” in the notes to the consolidated financial statements).

Of this total, €292.7 billion, or 90.2% of Group sales, was attributable to economic activity 3.3 Manufacture of low-carbon technologies for transport, and was classified as taxonomy-eligible. This includes sales revenue after sales allowances from the sale of new and used vehicles including motorcycles, from genuine parts, from the rental and lease business, and from interest and similar income, as well as sales revenue directly related to the vehicles, such as workshop and other services.

Economic activity 3.18 Manufacture of automotive and mobility components accounted for taxonomy-eligible sales revenue of €182 million or 0.1% of Group sales. This includes the sale of all-electric vehicle motors and powertrains to third parties.

Of the taxonomy-eligible sales revenue from economic activity 3.3 Manufacture of low-carbon technologies for transport, €38.3 billion met the screening criteria used to measure the substantial contribution to climate change mitigation. This includes all of our all-electric vehicles and a large proportion of our plug-in hybrids. In 2024, this were 755 thousand such vehicles, or around 5% fewer than in the previous year. Their share of the relevant sales volume – excluding the vehicles from the Chinese joint ventures – was 12.0 (12.7)%. Passenger cars and light commercial vehicles made up the bulk at 754 thousand vehicles; trucks and buses recorded a noticeable decrease year-on-year. Sales of all-electric vehicles (BEV) also decreased noticeably compared with the prior year.

In addition, the taxonomy-eligible sales revenue from economic activity 3.18 Manufacture of automotive and mobility components met the screening criteria used to measure the substantial contribution to climate change mitigation.

Taking into account the DNSH criteria and minimum safeguards, €24.1 (36.5) billion of the sales revenue generated from our vehicle-related business, equating to 7.4 (11.3)% of consolidated sales revenue, was taxonomy-aligned. Taxonomy-aligned sales revenue is generated from economic activity 3.3 Manufacture of low-carbon technologies for transport and in the 2024 reporting year exclusively comprises our all-electric passenger cars and light commercial vehicles that were manufactured in or for Europe. For economic activity 3.18 Manufacture of automotive and mobility components, taking into account the DNSH criterion for assessing substitution options, no sales revenue was reported as taxonomy-aligned in the reporting year (previous year: €165 million).

In the Power Engineering Business Area, our activities that fall under economic activity 3.2 Manufacture of equipment for the production and use of hydrogen generated taxonomy-eligible sales revenue of €34 million, which also met the criteria for the substantial contribution. Most of our taxonomy-eligible sales revenue in the Power Engineering Business Area was attributable to economic activity 3.6 Manufacture of other low-carbon technologies (€ 3.2 billion). In the reporting year, the complex evidential requirements for the substantial contribution were fulfilled for €102 million. A further €76 million was contributed to taxonomy-eligible sales revenue by economic activity 9.1 Close to market research, development and innovation.

Taking into account the DNSH criterion for assessing substitution options, no sales revenue in the Power Engineering Business Area was reported as taxonomy-aligned in the reporting year (previous year: a total of €96 million).

Of the Volkswagen Group’s total sales revenue in fiscal year 2024,

• €296.2 (297.4) billion, or 91.2 (92.3)%, was taxonomy-eligible sales revenue and
• €24.1 (36.6) billion, or 7.4 (11.4)%, was taxonomy-aligned sales revenue.

Capital expenditure

Capital expenditure for the purposes of the EU Taxonomy refers to the following items in the IFRS consolidated financial statements: additions to intangible assets, additions to property, plant and equipment, and additions to lease assets and investment property. These are reported in the notes to the 2024 consolidated financial statements in the notes on “Intangible assets”, “Property, plant and equipment” and “Lease assets and investment property”. Additions from business combinations, each of which is reported under “Changes in consolidated Group”, are also included. By contrast, additions to goodwill are not included in the calculation.

In fiscal year 2024, additions in the Volkswagen Group as defined above amounted to

• €12.7 billion from intangible assets,
• €16.7 billion from property, plant and equipment and
• €38.0 billion from lease assets (mainly vehicle leasing business) and investment property.

Other additions to be included resulted from changes in the consolidated Group, amounting to €0.2 billion in fiscal year 2024. Total capital expenditure to be included in accordance with the EU Taxonomy therefore came to €67.6 billion.

All capital expenditure attributable to our vehicle-related business is associated with economic activity 3.3 Manufacture of low-carbon technologies for transport. Taxonomy-eligible capital expenditure for the vehicle-related business amounted to €67.2 billion, or 99.3% of the Group’s capital expenditure.

To determine the substantial contribution in the vehicle-related business, we compiled the financial figures based on the vehicle model and powertrain technology in the same way as for sales revenue. Where possible, capital expenditure was directly attributed to vehicles. It was included if the vehicles in question make a substantial contribution to the climate change mitigation objective. Any capital expenditure directly attributable to vehicles that do not meet the screening criteria was not included. Capital expenditure that was not clearly attributable to a particular vehicle was taken into account on a proportionate basis using allocation formulas. In our vehicle-related business, we developed allocation formulas based on planned volumes of all-electric vehicles for the Group companies. In the sales companies, for example, we used allocation formulas related either to individual brands or to all brands, depending on the primary business activity, while site-based allocation formulas were used for production companies. This means that capital expenditure was counted in full via the allocation formulas for sites that according to our medium-term planning will produce only all-electric vehicles in the next five years. By contrast, capital expenditure for sites that do not produce all-electric vehicles was not counted via the allocation formulas. Calculated in this way, capital expenditure relating to vehicles that meet the screening criteria for the substantial contribution amounted to €23.2 billion.

Taking into account the DNSH criteria and minimum safeguards, capital expenditure of €18.5 (20.0) billion was taxonomy-aligned. This represented 27.3 (32.6) % of the Group’s total capital expenditure. Of this figure, €5.1 billion was attributable to intangible assets, €5.5 billion to property, plant and equipment and €7.9 billion to lease assets and investment property. Taxonomy-aligned capital expenditure in the 2024 reporting year refers exclusively to our all-electric passenger cars and light commercial vehicles and mainly concerns Europe; it includes additions to capitalized development costs of €4.3 billion and additions to property, plant and equipment of €5.5 billion.

In the reporting period, we refinanced taxonomy-aligned capital expenditure from fiscal years 2021 through 2023 based on the Green Finance Framework updated in October 2022 by issuing green bonds in the amount of €1.0 billion. Only capital expenditure in connection with all-electric vehicles was included here.

€93 million of the taxonomy-eligible capital expenditure in the Power Engineering Business Area is attributable to economic activity 3.2 Manufacture of equipment for the production and use of hydrogen, which also fulfills the substantial contribution criterion. €134 million of the taxonomy-eligible capital expenditure in the Power Engineering Business Area is attributable to economic activity 3.6 Manufacture of other low-carbon technologies, based on the planned sales revenue, of which €38 million will make a substantial contribution.

Taking into account the DNSH criterion for assessing substitution options, no capital expenditure in the Power Engineering Business Area was reported as taxonomy-aligned in the reporting year (previous year: a total of €62 million).

Of the Volkswagen Group’s total capital expenditure in fiscal year 2024,

• €67.4 (61.3) billion, or 99.6 (99.6)%, was taxonomy-eligible capital expenditure and
• €18.5 (20.1) billion, or 27.3 (32.7)%, was taxonomy-aligned capital expenditure.

Operating expenditure

The operating expenditure reported by us for the purposes of the EU Taxonomy comprises non-capitalized research and development costs, which can be taken from the note on “Intangible assets”. We also include the expenditure for short term leases recognized in our consolidated financial statements, which can be found in the note on “IFRS 16 (Leases)”, and expenditure for maintenance and repairs.

The allocation of operating expenditure to the economic activities followed the same logic as that described for capital expenditure.

All operating expenditure attributable to the vehicle-related business is associated with economic activity 3.3 Manufacture of low-carbon technologies for transport and has been classified as taxonomy-eligible.

Where possible, non-capitalized research and development costs were directly attributed to vehicles. They were included if the vehicles in question make a substantial contribution to the climate change mitigation objective. We did not include any non-capitalized research and development costs directly attributable to vehicles that do not meet the screening criteria. Non-capitalized research and development costs that were not clearly attributable to a particular vehicle were taken into account on a proportionate basis using allocation formulas. For these and other operating expenses, allocation formulas were used, similarly to capital expenditure. Taxonomy-aligned operating expenditure in the 2024 reporting year related solely to our all-electric passenger cars and light commercial vehicles and was attributable above all to Europe. Of the taxonomy-aligned operating expenditure of €5.4 (5.7) billion, around 86% was attributable to non-capitalized research and development costs.

€11 million of the taxonomy-eligible operating expenditure in the Power Engineering Business Area is attributable to economic activity 3.2 Manufacture of equipment for the production and use of hydrogen, which also fulfills the substantial contribution criterion. €233 million of the taxonomy-eligible operating expenditure in the Power Engineering Business Area is attributable to economic activity 3.6 Manufacture of other low-carbon technologies, based on the planned sales revenue, of which €69 million will make a substantial contribution. Taking into account the DNSH criterion for assessing substitution options, no operating expenditure in the Power Engineering Business Area was reported as taxonomy-aligned in the reporting year (previous year: a total of €69 million).

CAPEX PLAN UNDER THE EU TAXONOMY

The EU Taxonomy requires the reporting to state the extent to which taxonomy-aligned capital and operating expenditures a) relate to assets or processes associated with environmentally sustainable economic activities or b) are part of a plan to expand taxonomy-aligned economic activities or to allow taxonomy-eligible economic activities to become taxonomy-aligned (CapEx plan). A CapEx plan under the EU Taxonomy shows the total capital expense, i.e. the sum of capital and operating expenditures expected to be incurred in the reporting period and during the five-year medium-term planning in order to expand taxonomy-aligned economic activities or allow taxonomy-eligible economic activities to become taxonomy-aligned.

For the vehicle-related business, the CapEx plan drawn up under the EU Taxonomy relates to economic activity 3.3 Manufacture of low-carbon technologies for transport within the climate change mitigation environmental objective.

Additions from lease assets (mainly vehicle leasing business) are based on existing environmentally sustainable activities and have therefore not been included in the CapEx plan. We allocated additions from intangible assets and property, plant and equipment, as well as non-capitalized research and development costs to the CapEx plan if they allow taxonomy-eligible economic activities to become taxonomy-aligned or lead to the expansion of taxonomy-aligned economic activities. For this, we compared the average expected taxonomy-aligned production volume of all-electric vehicles from the medium-term planning with the taxonomy-aligned all-electric vehicles from the reporting period and allocated the taxonomy-aligned capital expenditure according to this ratio, whereby we also took into account the share exceeding the current taxonomy-aligned production volume of all-electric vehicles.

As a result, €8 (8) billion of the taxonomy-aligned capital expenditure and €4 (3) billion of the taxonomy-aligned operating expenditure in the reporting period is attributable to the CapEx plan under the EU Taxonomy. The total capital expense from the CapEx plan under the EU Taxonomy that is expected to be incurred in the reporting period and during the five-year medium-term planning amounts to €88 (90) billion. The CapEx plan was revised due to changes in market expectations, adjustments to medium-term planning and a reappraisal of the requirements of the EU Taxonomy.

In the Power Engineering Business Area, the CapEx plan under the EU Taxonomy relates to economic activity 3.2 Manufacture of equipment for the production and use of hydrogen, and economic activity 3.6 Manufacture of other low-carbon technologies, both of which are listed in the climate change mitigation environmental objective. In respect of the manufacture of equipment for the production and use of hydrogen and taking into account the DNSH criterion for assessing substitution options, we were not able to allocate any capital expenditure or operating expenditure to the CapEx plan in the reporting year (previous year: a total of €45 million). Based on the ratio of taxonomy-aligned sales revenue in the reporting year to the expected average taxonomy-aligned sales revenue envisaged in the medium-term planning, the total capital expense from the CapEx plan under the EU Taxonomy that is expected to be incurred in the reporting period and during the medium-term planning amounts to around €455 (455) million. In respect of the manufacture of other low-carbon technologies and taking into account the DNSH criterion for assessing substitution options, we were not able to allocate any capital expenditure or operating expenditure to the CapEx plan in the reporting year (previous year: a total of €59 million). Based on the ratio of taxonomy-aligned sales revenue in the reporting year to the expected average taxonomy-aligned sales revenue envisaged in the medium-term planning, the total capital expense from the CapEx plan under the EU Taxonomy that is expected to be incurred in the reporting period and during the medium-term planning amounts to approximately €360 (380) million.

Due to a lack of economic activities in the fields of nuclear energy and fossil gas, tabular presentation has been omitted.