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Volkswagen Posts HY Adj. Operating Loss; Cuts Dividend

Volkswagen Group (VKW.L,VLKAF.PK,VOW.BE) reported that its operating result before special items for the first half of the year was negative 0.8 billion euros, compared to positive 10.0 billion euros last year, due to lower unit sales caused by the sharp fall in customer demand.

Loss before tax were 1.4 billion euros compared to earnings of 9.6 billion euros in the previous year.

Until the end of June, the Volkswagen Group reported a sharp year-on-year decline of 27.4 percent in its deliveries to 3.9 million vehicles.

Group sales revenue decreases by 23.2 percent to 96.1 billion euros from the prior year.

The company said that Annual General Meeting will take place on September 30, 2020. The Board of Management and the Supervisory Board have resolved to propose now to the Annual General Meeting a dividend of 4.80 euros per ordinary share and 4.86 euros per preferred share. The company's Management has thus amended the proposed dividend previously announced for the 2019 fiscal year of 6.50 euros per ordinary share and 6.56 euros per preferred share.

Volkswagen Group anticipates that deliveries to customers will be significantly down on the previous year in 2020 due to the impact of the Covid-19 pandemic. The sales revenue of the Volkswagen Group is expected to fall significantly below the previous year's level in 2020 as a result of the Covid-19 pandemic.

Overall, the Volkswagen Group anticipates the operating result for 2020 before and including special items to be severely lower than in previous year; however, inpositive territory.

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