Impact on the Volkswagen Group

Operating result for 2016

Special items recognized in operating profit relating to the diesel issue amounted to €−6.4 (−16.2) billion in fiscal year 2016, mainly due to higher provisions for legal risks.

Legal risks

Various legal risks are associated with the diesel issue. The provisions recognized for this matter and the contingent liabilities disclosed as well as the other latent legal risks are partially subject to substantial estimation risks given the complexity of the individual factors, the ongoing approval process with the authorities and the fact that the independent, comprehensive investigations have not yet been completed. The legal risks include (detailed information on the legal risks can be found in chapter „Litigation“):

• Criminal and administrative proceedings worldwide (excluding the USA/Canada)
• Product-related lawsuits worldwide (excluding the USA/ Canada)
• Lawsuits filed by investors worldwide (excluding the USA/ Canada)
• Proceedings in the USA/Canada

Should these legal risks materialize, this could result in considerable financial charges.

Further risks from the diesel issue can be found in the Report on Risks and Opportunities.