Volkswagen Group Carsten Arntz, Head of JV Controlling, Finance

Morgan Stanley Investor Visit , April 10th, 2013 Content

Our Momentum in China

Outlook Market Development

Investments Group China

Driven by Design and Technology

Financial results, challenges and opportunities

2 Introduction of China (VGC)

Volkswagen production facilities in China History

FAW-Volkswagen (Volkswagen, ) 1985: Founding of Volkswagen Automotive Co. (SVW) Volkswagen FAW Platform as with Shanghai Automotive Industrial Corporation Dalian Beijing Volkswagen FAW Engine (SAIC). 8 million vehicles produced Volkswagen China as of June 2012. Investment Company Volkswagen Automatic Yizheng Transmission 1991: Founding of FAW-Volkswagen Chengdu Nanjing Automotive Co. Ltd. (FAW-VW) as FAW-Volkswagen Shanghai Shanghai Volkswagen second joint venture with First Automotive Work (FAW). 6 million Shanghai Volkswagen vehicles produced as of June 2012. (Volkswagen, ŠKODA) 2004: Founding of Volkswagen Group Volkswagen Transmission production plants China for coordination and Component plants management of activities of Headquarter Volkswagen Group China Shanghai Volkswagen Powertrain Volkswagen Group within China.

Total investments 1985-2012 € 15.7 Billion Today: 17 Volkswagen companies and subsidiaries respectively Planned Investments 2013-2015 € 9.8 Billion (including finance and sales Employees 2012 74,500 companies).

3 Volkswagen as a pioneer in China

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20102011 2012

1985 2011

4 Successful partnership with FAW and SAIC

Foundation Foundation 1991 1985 Share Share FAW 60%, VW AG 30%, AUDI AG 10% SAIC Motor 50%, VW AG 50% Deliveries 2012 Deliveries 2012 1,319,000 units 1,304,000 units Sagitar Magotan Lavida Santana Passat Volkswagen Volkswagen

New Bora CC Golf Polo Touran Tiguan Škoda

Audi Audi A4L Audi A6L Fabia Rapid Octavia Superb

5 Deliveries of Volkswagen in China January to February 2013

Import FBU*) Locally Produced (‘000 Units) (‘000 Units)

VW, VWN 13.2 FAW-VW 171.0 56.8 Audi 11.1

Porsche 5.8 SVW 208.8 39.0 Other Brands 0.9

Ʃ 31.0 Ʃ 475.6

Total Deliveries Region China 506.6

* incl. Hongkong; Source: Volkswagen Group China 6 Deliveries to customers by brand from January – February 2013*

(‘000 Units) +27% 550 507 500 Strong sales +31% performance of all main 450 brands continuing! 398 400 392 350 300 300 250 2013 Jan-Feb 200 150 +16% 2012 Jan-Feb +4% 100 59 68 50 38 39 0 6 0

* Figures including AG as from 1 August 2012 7 In Jan-Feb 2013, the Volkswagen Group maintained its Number 1 position by market share in China Mainland*

Trends of Changes of Others Rank Brand/Group market share market share (i.e. local Volkswagen (YTD) (YTD) brands) 21%20% 1 Volkswagen Group + 1.2% 32% 2 Hyundai Group + 1.9% 3 GM Group - 0.7% 11% Hyundai 4 Group - 1.1% 5 Toyota Group - 1.3% Honda 3% 10% 6 Group + 0.0% 3% BYD 3% GM 7 Great Wall + 0.8% 4% 5% PSA 4% 4% 8 PSA Group + 0.3% Great Nissan 9 BYD - 0.1% Wall Geely Toyota 10 Honda Group - 0.8% Others - 0.2%

* Figures including Porsche AG as from 1 August 2012 8 Content

Our Momentum in China

Outlook Market Development

Investments Volkswagen Group China

Driven by Design and Technology

Financial results, challenges and opportunities

9 2012 GDP reached 7.7% growth year on year, and the economy is now on a path of stable growth 2013 2010 2011 2012 (forecast)

CAGR CAGR CAGR CAGR 10.3% 9.2% 7.7% 8.2%

11.9%

10.3% 9.8% 9.6% 9.7% 9.5% 9.1% 8.9% 8.5% 8.2% 8.4% 8.1% 7.9% 7.6% 7.4% 7.7%

Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13E Q2/13E Q3/13E Q4/13E

Source: Deutsche Bank, last update December 2012. 10 After a strong boom in the past years, passenger car market growth in China is stabilizing and will develop further in the future

Total Passenger Car Market – CAGR 6-8%* China (incl. HK) >20.000 (‘000 Units)

+9% +8% +35% 13.537 +6-8% 12.388 11.457 +54% 8.482 CAGR +19% 5.503

2.266

2003 2008 2009 2010 2011 2012 2013E 2015E 2020E * Estimate Data Source: Volkswagen Group China / IHS Global Insight 11 Current 5-year-plan: New growth model with focus on domestic market

To date: Now: Focus on export and quantitative growth Focus on domestic market and qualitative growth

12th 5-year-plan 2011-2015

Domestic consumption as growth accelerator 11th 5-year-plan 2006-2010 Megacities as growth generator Focus on environmental protection and energy Multi-National-Companies and infrastructure efficiency projects as growth generator Encouragement of Chinese innovations Big growth in manufacturing trade Social stability due to balanced allocation of Jobs in cities to keep unemployment low prosperity Internationally comparable price stability and well- Selective policies for foreign investment as well as adjusted foreign trade balance globalization of Chinese companies

12 Mega and small cities will be the engine of GDP growth

Distribution by city size

City Level 2012 2020 % of GDP (Urban Population) 832 cities 865 cities 2012 2020 7 Mega (10M+) 7 10 22 27 3 6 Big (5-10M) 9 11 11 12 5 56 Mid-sized (1.5-5.0M) 61 85 26 26 29 253 Small (0.5-1.5M) 282 335 27 26 82 391 Big town (<0.5M) 473 424 13 10 33 New cities

Source: McKinsey Insights China – Macroeconomic model updated April 2012 13 GDP Growth development is expected to differentiate more strongly between the various Chinese regions

Chinese GDP growth per Province Q1 – Q3 Total GDP Province Growth 2012 2011 (trillion RMB) Tianjin 13.9% 1.10 Guizhou 13.8% 0.56 Heilongjiang Chongqing 13.8% 1.00 Sichuan 12.8% 2.00 Shaanxi 12.7% 1.20 Yunnan 12.6% 0.88 Jilin Gansu 12.3% 0.52 Inner Mongolia Qinghai 12.3% 0.16 Liaoning Jilin 12.1% 1.04 Xinjiang Anhui 12.0% 1.50 Beijing Inner Mongolia 11.6% 1.40 Hebei Tianjin Xinjiang 11.5% 0.66 Fujian 11.4% 1.75 Ningxia Shanxi Shandong Tibet 11.4% 0.06 Hunan 11.2% 1.96 Qinghai Gansu Guangxi 11.2% 1.20 Henan Jiangsu Shaanxi Hubei 11.2% 1.80 Shanghai Ningxia 11.0% 0.21 Tibet Anhui Sichuan Hubei Jiangxi 10.6% 1.20 Zhejiang Jiangsu 10.1% 4.80 Chongqing Shanxi 10.0% 1.10 Hunan Jiangxi Henan 10.0% 2.70 Guizhou Fujian Shandong 9.7% 4.54 Heilongjiang 9.6% 1.10 GDP Growth Q1-Q3 2012 Liaoning 9.3% 2.20 12-15% Yunnan Guangxi Guangdong Hebei 9.3% 2.40 Hainan 8.4% 0.25 10-12% Guangdong 7.9% 5.30 7-10% Zhejiang 7.7% 3.18 Hainan Beijing 7.5% 1.60 Shanghai 7.4% 1.92 Data Source: Provincial Government Report 14 Content

Our Momentum in China

Outlook Market Development

Investments Volkswagen Group China

Driven by Design and Technology

Financial results, challenges and opportunities

15 Go West and Go South Strategy for further growth

Changchun Urumqi

“Go West Strategy” Beijing

Chengdu Yizheng Nanjing Shanghai

Ningbo “Go South Strategy”

Foshan

Existing production site New production site

16 Capacity expansion plans – on the way to 4 million units in 2018 Standard capacity of 250 working days

4 million units

SVW

FAW-VW

Capacity expansion plans are based on certain assumptions for the development of unit sales growth, upward flexibility (e.g. additional working days) and downward flexibility (e.g. postponement of expansion steps) are given.

17 Implementation of MQB*) toolkit in Chinese production network

Changchun Urumqi

Beijing

Chengdu Yizheng Nanjing Shanghai

Ningbo Foshan

Existing production site New production site MQB production site MQB provides Toolkit affords substantial efficiency gains Reduction of unit costs Flexibility in length, height, width Lower one-off expenditure Golf A3 Octavia Less engineered hours per Significant economies of vehicle scale Significant weight and Opportunity for low volume emission reduction niche models Alternative powertrain concepts Start: 2013

*) MQB: Modularer Querbaukasten / modular transversal toolkit 18 Further strengthening of partnerships with SAIC and FAW

SAIC FAW

Signing ceremony April 23rd, 2012 Signing ceremony April 23rd, 2012 in Wolfsburg in Wolfsburg Agreement about Urumqi plant Intention to extend JV contract with FAW

19 Volkswagen Group China: Planned product portfolio in 2015 with more than 90 models

Commercial Vehicles

CKD>30 FBU >60 >90

Note: number of product models 20 Significant growth of dealer networks planned*)

>3,000

2,054

*) Map includes only Volkswagen, Audi and Škoda dealers, discrepancies may occur due to reporting backlog 21 Content

Our Momentum in China

Outlook Market Development

Investments Volkswagen Group China

Driven by Design and Technology

Financial results, challenges and opportunities

22 – Special design elements for Chinese customers

Radiator grill Tail lamps Speaker covering Wheel program

Passat USA

Passat China

23 Latest powertrain and vehicle technologies of the Volkswagen Group for China

Powertrain Technologies Vehicle Technologies

. TSI® . Weight Reduction . Downsizing . Optimized Aerodynamics . DSG® . Reduced electric power consumption . Optimized Automatic-Gearbox . Start-Stop . …

. E-Mobility

24 Optimization of resource consumption in production process

– Example Chengdu – Factories Press Shop Body Shop

Less: Energy

CO2 Water Paint Shop Infrastructure Waste

25 Content

Our Momentum in China

Outlook Market Development

Investments Volkswagen Group China

Driven by Design and Technology

Financial results, challenges and opportunities

26 Volkswagen Group China reported another strong operating result for the business year 2012

2008 2009 2010 2011 2012

Deliveries to Customers (’000 Units) 1,024 1,400 1,923 2,259 2,813

1) Production (100%) (’000 Units) 975 1,387 1,914 2,202 2,643

1) SVW Group/FAW-VW Group

Operating profit (quotal) (€ m) 395 831 1,907 2,616 3,678

Source: Volkswagen Group China 27 Challenges in a regulatory environment

Risk of restrictive policies for new car sales in Demanding requirements for fleet consumption developed Eastern Megacities

Quota

240k /year

Beijing

< 120k cars/year Shanghai (not fixed) Guangzhou

120k cars/year

Additional megacities like Hangzhou, Shenzhen, Xi'An et al. Details for Phase IV still under review are expected to introduce similar restriction measures

28 Volkswagen Group China has relevant strategies in place

Future growth prospects also coming from less Different measures in place to realize the ambitious developed regions and Tier 2-3 cities fleet consumption targets

Recuperation TSI Engine and transmission Start-Stop Downsizing technology Optimal ATM Dual clutch “Go West Strategy” transmission Weight reduction Vehicle measures Aerodynamic optimization Reduction of electric consumption “Go South Strategy” Hybrid EVs E-Traction BEVs Plug-in hybrid EVs

Production and Dealer network extension will support New technologies and products will help to achieve targets  Growth in Western and Southern provinces 

29 Additional business opportunities

Financial Services expects increase Growing Chinese used car market in retail finance share2)

1) Total Used Car Market forecast 2012 2018 20.0 million units +30% p.a.

2.4

2010 2012 2014E 2016E 2018E cash buyer dominance stronger finance demand expected

Volkswagen Financial Services also aims to establish Roll out and Implementation of the successful Volkswagen Group used - Mobility packages car brand “Das WeltAuto” in the - Long Term Rental & Fleet Business Chinese dealer network - Insurance Related & After Sales Services

1) Source: China Automotive Dealer Association 2) Based on the total passenger car sales in the market China

30 Volkswagen Group China is well positioned to maintain its number one position in the market and seize additional opportunities in the future Volkswagen Group China

3,5

3 Delivered vehicles in million units

2,5

2

1,5

1

0,5

0

31 Disclaimer

This presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the , which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecast.

Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially ) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.

If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements.

We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.

This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

32 Industrial stock level by end of February 2013 increased to 1.8

Current stock level (in months) of major OEMs

(>1.5) (1.3~1.5) (<1.3)

3.3 (3.1) 2.6 2.6 (1.9) (2.2) 2.1 (1.8) 1.8 1.7 1.6 1.6 1.6 (1.4) 1.5 (1.7) (1.7) 1.4 1.3 (1.4) (1.4) 1.2 1.2 1.2 1.1 (1.3) (1.3) (1.1) 1.1 1.1 1.1 1.0 (1.4) (1.4) (1.5) (1.3) (1.2) (0.9) (0.9) (0.8)

Comp. Comp. Comp. Comp. Industry Comp. Comp. Comp. Comp. Comp. Comp. Comp. Comp. FAW-VW Audi SVW Skoda Comp. Comp. Comp. 1 2 3 4 5 6 7 8 9 10 11 12 VW VW 13 14 15

Volkswagen Group Source: CPCA, / VGC stock figures based on internal report. (x.x) stock level by end of December 2012 *Stock level =month-end stock / average 3 month AaK. All brands refer to CKD only 33