It sends a speed signal to the Hydractive Computer to assist with hard/soft mode change decision process;
In manual gearbox cars it tells the Engine Management to maintain a slightly higher idle between gear changes to ensure a smooth change whilst the car is in motion;
In automatics it assists the gearbox ECU to make gearchange decisions;
It drives the speedo and odometer.
I'm sure it does more than that too but my mind has gone blank!