Volkswagen Group: Financial sustainability on core strengths Christine Ritz & Andreas Buchta Group Investor Relations, Aktiengesellschaft German Investment Seminar, New York, 13-14 January 2014 Disclaimer

This presentation contains forward-looking statements and information on the business development of the . 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 rinminbi 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.

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2 Development World Market1) vs. Volkswagen Group Passenger Car Deliveries2) (Growth y-o-y in deliveries to customers, January to December 2013 vs. 2012) bf World: Car Market: 5.0% Volkswagen Group Passenger : 5.1%

Car Market VW Group Car Market VW Group Car Market VW Group Cars + LCV

7.3% 5.4% -1.9% -0.2% -3.9% -0.6%

North America Western Europe Central & Eastern Europe

Car Market VW Group Car Market VW Group Car Market VW Group 13.6% 14.8% 7.5% 8.6% -0.7% -13.3% South America Rest of World Asia Pacific

1) Preliminary figures 2) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN; incl. since 08/2012 3 Volkswagen Group – Deliveries to Customers by (January to December 2013 vs. 2012) ´000 units January – December 2012 12,000 1) ~ +5% January – December 2013

>9,700 10,000 9,300

8,000 +3.4%

5,738 5,932 6,000

4,000 +8.3% -2.0% +10.6% 2,000 1,455 1,575 +18.9% 939 921 321 355 60 162 9 10 0 Volkswagen Group (since 08/12) 1) Figures incl. Scania and MAN (estimated figures) and Volkswagen Commercial Vehicles. Porsche AG fully consolidated as from 1 August 2012 4 Financial Highlights – Volkswagen Group (January to September 2013 vs. 2012)1)

Sales revenue Operating profit Profit before tax Profit after tax

€ million € million € million € million

+ 1.0% -3.4% - 59.1% - 66.7% 22,957 144,226 145,673 20,152

8,857 8,557 9,399 6,702

2012 2013 2012 2013 2012 2013 2012 2013

1) The prior-year figures were adjusted to reflect application of IAS 19. 5 Volkswagen Group – Analysis of Operating Profit

€ billion 10.0 1.1 -0.8 8.9 -0.4 9.0 -0.3 -0.1 0.2 8.6

8.0

7.0

6.0

5.0

4.0 Jan – Sept Volume/ Mix/ Exchange Product Fixed costs/ Commercial Financial Jan – Sept Prices1) rates costs start-up costs 2012 Vehicles, Services 2013 Power Division Passenger Cars Engineering

1) Incl. Porsche AG. 6 Volkswagen Group – Analysis by Business Line1) (January – September 2013) Vehicle sales Sales revenue Operating profit 2) thousand vehicles/ € million 2013 2012 2013 2012 2013 2012 Volkswagen Passenger Cars 3,499 3,638 74,233 78,972 2,117 2,886 1,004 1,002 36,965 37,667 3,743 4,197 ŠKODA 524 551 7,365 7,868 371 567 SEAT 335 315 5,017 4,798 -93 -95 7 7 1,069 1,051 98 73 Porsche3) 115 22 10,419 2,167 1,893 387 Volkswagen Commercial Vehicles 325 330 7,011 7,079 342 300 Scania3) 56 47 7,365 6,724 691 688 MAN3) 98 101 11,342 11,754 47 518 VW China4) 2,294 1,923 - - - - Other -1,017 -959 -29,370 -27,176 -1,7775) -1,6515) Volkswagen Financial Services - - 14,258 13,322 1,126 987 Volkswagen ,241 6,978 145,673 144,226 8,557 8,857 Automotive Division 7,241 6,978 129,171 129,573 7,225 7,751 of which: Passenger Cars6) 6,761 6,499 103,849 104,400 6,835 7,242 of which: Commercial Vehicles, Power Engineering6) 480 479 25,321 25,172 390 509 Financial Services Division - - 16,502 14,653 1,333 1,106

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Prior-year figure adjusted due to the revised IAS 19. 3) Incl. financial services; Porsche since August 1, 2012. 4) Sales revenue and operating profit of the JV’s in China are not included in the Group figures. The Chinese companies are accounted for using the equity method and recorded an operating profit (proportionate) of €3,530 million (€2,806 million). 5) Mainly intragroup items, in particular from elimination of intercompany profits; incl. depreciation and amortization of identifiable assets as part of the PPA for Scania, Salzburg, MAN and Porsche. 6) Volkswagen Commercial Vehicles has been reported within the Automotive Division under commercial vehicles since January 1, 2013; the prior-year figures have been adjusted. 7 Automotive Division – Strong Cash Generation1) (January – September 2013)

in € billion 18.0

15.0

12.0 -6.4 (5.0%2)) 9.0 14.7 -2.6 6.0 0.4 -1.6 3.0 6.1 4.4 0.0 2012 11.9 -6.0(4.6%2)) -1.7 0.2 4.5 -3.9 0.6

Cash flow Capex Capitalized Other Net cash flow Acquisition Net cash flow from operating R&D costs before equity and disposal activities investments of equity investments

1) Including allocation of consolidation adjustments between Automotive and Financial Services divisions. 2) Capital expenditure for property, plant and equipment in % of Automotive sales revenue. 8 Volkswagen Group – Outlook 2013

+ 4.8% 9,276 Deliveries to 6,855 7,185 We expect … customers (million vehicles) ■ deliveries to customers to increase y-o-y. ■ sales revenue to exceed the prior-year figure. + 1.0% ■ positive effects from our attractive model 192.7 144.2 145.7 range and strong market position. Sales revenue (€ billion) We have the goal…

-3.4% ■ to match the prior-year’s level of operating 11.5 profit in 2013, even with an ongoing uncertainty 8.9 8.6 Operating profit in the economic environment. (€ billion) ■ This applies equally for the Passenger Cars Business Area, the Commercial Vehicles / Power Engineering Business Area and the Financial Services Division. 2012 2013 2012 2013 Jan - Sept Full Year 9 Volkswagen Group – A global economic and environmental leader by 2018

Growth market focus Potential upside Increased market penetration Modular toolkit strategy Product portfolio extension 1 Emerging markets expansion Reduction in investment, North American expansion Balanced global footprint development and unit costs and market recovery Scale and efficiency effects Commercial vehicle strategy 6 Leading in 2 Increased production flexibility and market recovery customer satisfaction Reduced time to market and quality Financial Services: strengthen the automotive value chain Volkswagen Group Top profit before tax employer margin > 8% Volumes Capital discipline > 10 million units p.a.2) > 16% RoI target in Synergy potential automotive business Leveraging best practices 20% RoE1) goal in across the 3 Operating profit measures Financial Services Purchasing, production, and Strong cost control distribution benefits 4 Process/product optimization Regional scale effects

1) Normalized RoE based on 8% equity ratio 2) Including China Note: All stated Volkswagen Group figures represent financial targets for 2018 10 Volkswagen Group – Leveraging the power of three strong pillars

Automotive Division Financial Services Division Commercial Vehicles / Passenger Cars Volkswagen Financial Services Power Engineering

Europe / Asia-Pacific / North and South America

Financial Services USA / Canada / Spain / Argentina

Scania Financial Services MAN Financial Services Porsche Holding Financial Services Porsche Financial Services Remaining companies

11 Passenger Cars – Nine independent brands addressing all customer needs

Automotive Division

Passenger Cars

Remaining companies

12 Passenger Cars – Strong market penetration through well positioned and differentiated brands

Sporty Value for Money Positioning focus Volume brands: . Volkswagen Mainstream mobility for the upmarket driver . ŠKODA

Economical Functional and roomy cars for the product-value focussed audience . SEAT Sporty and stylish for the young and young-in-mind

Premium driver

Premium brands: . Audi Progressive prestige for innovation seekers . Porsche Family Sporty prestige for the elite high end client

Source: Volkswagen Group, EU 5 markets 13 Key sales markets offer substantial growth opportunities bf Market growth 2012 – 2018 (million units) 5.4 4.2 4.4 19.3 19.5 15.0 +29% 17.2 13.7 28.8 13.2 24.6 2012 2015 2018 +14% +14% 18.6 Central & Eastern 2012 2015 2018 2012 2015 2018 Europe +55% (incl. Russia) Western Europe1) North America 2012 2015 2018

5.1 China (incl. HK) 100 3.3 3.7 90 7.4 79 +55% 5.9 6.5 2012 2015 2018 +26% +26% India

2012 2015 2018

2012 2015 2018 1) South America2) Includes Cyprus and Malta 2) Includes Central America and Caribbean World Source: IHS Automotive (data status: October 2013), rounded Note: Market = Cars and LCVs 14 Above-average growth rates in premium and SUV segments bf Compound annual growth rates 2012 – 2018 6.3% 5.1% 4.3% 4.3% 14.1% 3.7% 3.5% SUV 11.8% 2.2% Hatch 2.2% 2.1% SUV 4.2 0.3 1.1 SUV Central & Eastern 7.5% 17.2 1.6 1.4 13.2 2.6 1.9 Europe (incl. Russia) North America Western Europe1) 19.9% 11.7% 5.9% 18.6 1.2 2.5 5.2% SUV 11.0% China 5.8% 3.9% (incl. HK) 3.9% 7.6%

SUV 3) MPV Legend:

5.9 0.09 0.5

3.3 0.03 0.2 3) Premium Segment South America2) Total 79.4 6.6 13.0 India Segment Premium Total 1) Includes Cyprus and Malta 2) Includes Central America and Caribbean World Sales 2012 3) Passenger car segment with the highest CAGR 2012-18 Source: IHS Automotive (data status: October 2013), rounded 15 Note: Market = Cars and LCVs All brands contribute substantially to the targets of the Volkswagen Group

Targets

Deliveries to 6,600,000 > 1,500,000 > 500,000 > 2,000,0003) > 200,000 > 15,000 customers1) Sustainable > 6% 6-8% > 5% 8-10% > 15% > 10% operating profit margin2) Return on Investment in the Automotive Division

17.7% > 16 % 13.5% 16.6%

9.5% 10.9% 3.8%

2007 2008 2009 2010 2011 2012 … 2018 Target

1) Including deliveries to customers by joint venture companies in China 2) Excluding operating profit of joint venture companies in China which are accounted for using the equity method 3) Target for year 2020 16 Volkswagen Passenger Cars – The Group’s new markets spearhead

Chattanooga (2011) Kaluga (2007)

Dealer increase1): Dealer increase: >20% >120% High investments, such as ■ ramping up local production ■ technology transfer Silao (2013) ■ building up dealer network …

will pay off with Dealer increase: Dealer increase: >50% ■ higher deliveries to customers ■ higher returns >170% ■ significant synergy potential within the Group Pune (2009) Ningbo (2013) Dealer increase: Changsha (2015) >650% Urumqi (2013) Foshan (2013) 1) Expected growth of number of dealerships 2008 – 2015 Production locations Production locations under construction 17 Volkswagen Passenger Cars – The Group’s front-runner

Deliveries to customers (‘000 units)1) Lead role in terms of…

> 6.6 m Rest of World Powertrain MQB Sustainability 6,000 Asia Pacific

4,000 South America DSG 2,000 North America Production footprint expansion Products Europe (w/o Germany) Germany

Operating profit margin2) Key drivers to achieve targets

8% > 6% ■ Drive regional diversification in sales and production with local products for local needs 6% ■ Continue product firework including further derivatives 3.7% 4.0% 3.5% 4% 2.6% 2.7% ■ Utilize margin potential in growth regions 2% 0.9% ■ Successful execution of MQB strategy 0% ■ Strict cost and investment discipline while retaining quality and price leadership

1) Including deliveries to customers by joint venture companies in China 2) Excluding operating profit of joint venture companies in China which are accounted for using the equity method 18 ŠKODA – Growing sustainably and profitably

Deliveries to customers (‘000 units)1) Portfolio expansion > 1.5 m 1,500 New SUV 9 Rest of world Spaceback Rapid +1 Citigo +1 1,000 Asia Pacific +1 5 +1 500 CEE Western Europe

2010 2011 2012 2013

Operating profit margin2) Key drivers to achieve targets 10% 8.9% 8% 7.0% 7.2% 6.8% ■ Continue model firework and improving positioning 6-8%3) 6% 5.1% ■ Entering new segments (broader model portfolio) 4% 2.9% ■ Continue regional diversification in sales and production: 2% focus on emerging markets 0% ■ Increase production efficiency

1) Including deliveries to customers by joint venture companies in China 2) Joint Venture companies in China are consolidated at equity in the financial result of the Volkswagen Group 3) Sustainable operating profit margin target range to be achieved in the mid-term 19 SEAT – Three cornerstones to sustainable profitability

Deliveries to customers (‘000 units) Strategic actions to achieve targets

600 > 500 Rest of world 400 Focus on models Increase sales performance Americas 1 and segments 2 through comprehensive 200 CEE with higher profitability structure enhancement and streamlining of dealerships Western Europe 0

Operating profit margin 6% > 5% 3% 0.1% 0% -3% -1.5% -2.4% -6% -4.2% Strict cost and investment discipline -6.2% -9% -7.4% 3 in all areas to improve profitability

20 Audi – Focused on leadership in image, volume and profit

Deliveries to customers (‘000 units)1) The most progressive brand > 2.0 m 2,000 Rest of world 1,500 Asia Pacific 1,000 North America 500 Europe

Operating return on sales2) Six target dimensions 15% ■ Top image position and customer mix 12.1% 11.0% 12% 9.4% 8.0% 8.1% ■ Leaders in innovation 9% 8-10% 6% 5.4% ■ Profitable growth, including enhanced N. America foothold 3% ■ Attractive employer worldwide 0% ■ Superior financial strength ■ Sustainability of products and processes

1) Including deliveries to customers by joint venture companies in China 2) Excluding operating profit of joint venture companies in China which are accounted for using the equity method 3) In 2013 a margin at the upper end of the target range of 8-10% is expected to be achieved 21 Porsche – Value creating growth ahead

Deliveries to customers (‘000 units)1) Successful model line-up

> 200 Asia Pacific / 200 RoW 150 Americas 100 Europe Increase 50 customer enthusiasm providing a unique purchase and ownership experience

Value- Excellent Return on Capital Operating profit margin1) employer and creating > 21% and Key drivers to achieve targets business partner growth Return on Sales > 15% 18.7% ■ Extension of Porsche model line-up while 20% 18.1% 17.6% > 15% maintaining superior brand image 15% Sales of > 200,000 cars at a typical Porsche ■ Customer enthusiasm for high-end quality premium price premium 10% vehicles ■ Development of modular toolkits for luxury brands 5% ■ Continuous value-adding investments 0% ■ Realization of annual synergies within the Integrated Automotive Group

1) Porsche fully consolidated as from 1 August 2012 22 Substantial synergies throughout the Group from the creation of the Integrated Automotive Group with Porsche

New models / segments . . New C-SUV generation (Q7, Touareg and Cayenne)

Shared engine portfolio . V6 / V8 TDI €400 m . New gasoline engines (3.0 TFSI) in 2013

Financial Services . Improved refinancing conditions €700 m > €1 bn . Leasing

Purchasing . Volume bundling in production and non-production

Sales and Marketing . Shared national sales companies Initial target Mid-term target . market in China

23 New Volkswagen Group models 2014 – a strong basis for profitable growth

Alternative Powertrains Highlights Global Roll-out

• PHEV & e-Golf • Volkswagen Golf Sportsvan, • Volkswagen Golf-Family Passat Lim. & Estate • Audi A3 e-tron (China/USA), up! (SAM) • Audi A3-Family (S3 Lim. & Cabrio), • Audi A3-Family (China, USA, SAM) • ŠKODA Octavia CNG TT Coupe • ŠKODA Rapid (Russia), Octavia & • SEAT Leon & Leon ST CNG • ŠKODA Octavia Scout, Fabia & Fabia Estate Rapid Spaceback (China) • • Porsche Macan & 911 Targa • SEAT Leon ST (Russia) • Huracán • Turbo • Bentley Continental GT V8 S, Flying Spur V8

24 Broad product and segment mix highlights opportunity to capture further profitable growth across all segments (world 2014) City / Hatchback Estate MPV SUV Coupé Pick-Up World 2014 Transporter

E 1)

D 1) 1) 1)

C 1)

B 1) 1) 1)

A

A0

A00

Segments > 1m cars New product launch 2014

1) Porsche fully consolidated from 1 August 2012 25 China’s economy: Growth normalizing but still with significant potential

Real GDP growth (% y-o-y) Avg. growth rate passenger car vehicle market 24.3% 10.3% CAGR (%) 9.2% 20.9% 7.7% 7.7%

Total Market > Market VGC 5-7%

2010 2011 2012 2013e 2007-2012 2013-2020e Source: Internal calculations based on IHS Global Insight Source: Estimates based on IHS and internal calculations Car density First car purchases

Level I cities Level II cities Level III cities Level IV cities Megacities Lower tier regions 123

Cars/1,000 70 inhabitants 30 18

Number of cities 8 47 167 74 Average # of 14.7 7.6 4.0 2.3 inhabitants (in m)

Source: NCBS 2011; Definition „Megacity“: Tier 1, „Lower tier regions“: Tier 3 as reference 26 Strong market position and profitability in China

Expanding local capacity and model portfolio Passenger car market share (Jan - Nov 2013)

■ Operating profit (Jan-Sep 2013, proportionate): €3.5 bn (+26%) [China Mainland] ■ Investments 2014-2018: €18.2 bn (fully self-funded) 21% 30% ■ Locally produced models: Today: 21 Others 2015: > 30 10% Competitor 1 3% “Go West 3% 10% New plants 4% 4% Existing plants Strategy” 4% 5% 6% Competitor 2 Headquarters Competitors 5-9 Changchun Competitor 3 Competitor 4 Urumqi Deliveries to Chinese customers by brand1) Beijing (‘000 units)

Yizheng 3,271 (+16%) Shanghai Total 2,815 Nanjing Chengdu Ningbo 2,506 (+17%) Volkswagen 2,150 Changsha 492 (+21%) Audi 406 GDP growth 2013e 12-15% Foshan 227 (-4%) ŠKODA 236 10-12% “Go South Jan - Dec 2013 Porsche 37 Jan - Dec 2012 7-10% Strategy” 13

1) China (incl. Hong Kong), including Volkswagen Commercial Vehicles, Scania (Jan – Sep) and MAN (estimated figures). Porsche fully consolidated as from 1 August 2012. 27 USA – Returning to sustainable profit

Expanding local footprint Continued growth momentum in the U.S. market Deliveries in ‘000 units by brands 1,000 Herndon Headquarters 800 Electronics 600 Research Chattanooga Plant Laboratory 400 Headquarters 200 Silao Plant (engines) 0 Puebla Plant San José Chiapa Plant (SOP 2016) Volkswagen Audi Porsche1) Other LCV segment remains a large opportunity Clean Diesel as a strong USP in the US Diesel deliveries in ‘000 units (Volkswagen Group) Segment structure 2013 Deliveries to customers Jan - Dec 2013 vs. Jan - Dec 2012 < 25% 120 Other -6.9% >75% 80 Volkswagen +13.5% Group +20.8% 40

Total +7.6%2) 0 Diesel Passenger Car and LCV Market 2007 2008 2009 2010 2011 2012 2013 market in the US in 2013 LCVs Cars Source: POLK, Volkswagen Group of America, Inc. 1) Figures including Porsche as from 1 August 2012 2) Thereof Passenger Cars +4.9%, Light Commercial Vehicles +10.5% 28 USA – Leveraging the power of the Group

Rising Volkswagen Brand customer loyalty Audi continues to deliver high-quality growth 60% $ ‘000 10.0% 50

40% 7.5%

20% 30 5.0% 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Volkswagen Brand Segment adj. industry Source: POLK, Volkswagen Group of America, Inc. Average selling price Share of U.S. premium market Continued strong momentum at Porsche1) VW Credit, Inc. facilitates profitable growth

Deliveries in ‘000 units, by model $ billion 90% 40 70% 30 20 50%

0 10 30% 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2018e2) Boxster/Cayman 911 Cayenne Panamera Total assets Penetration rate in % 1) Porsche fully consolidated as from 1 August 2012 2) Volkswagen/Audi/Ducati only 29 Brazil – Short-term challenge, mid-term opportunity

Local production of market-leading models Deliveries to customers (‘000 units)

1,200 > 1,000 30% Gol Fox 900 27% 600 24%

São Carlos (engines) 300 21% Taubaté Anchieta 0 18% Curitiba1) Saveiro 2007 2008 2009 2010 2011 2012 2013 … 2018 Target Group deliveries Market share

A rapidly changing competitive landscape Actions to reach the 2018 sales target for Brazil Number of automotive companies > 1 million units in the Brazilian market Importers • Introduction of MQB technology • Reach 95% market coverage • ~ 20 new models in 2013 - 2018 Other local producers Renew existing products

"Big 4" 2) Cost-focused restructuring 1980's 1990's 2010 2015e 2003 2013 2018 Source: Anfavea; own research

1) Audi to start production in São José dos Pinhais in 2015 (Audi A3 Sedan and Q3) 30 2) Volkswagen, Fiat, , Ford ASEAN – Strong market opportunity applying Group resources

Market sales development and outlook1) Volkswagen Group approach for ASEAN in million units Short-term Mid-term Long-term 5 +4.5% p.a. Other Local 4 Philippines content Vision 3 Malaysia Technology 2 Thailand ASEAN Leader 1 60% CKD / FSP hub Indonesia 0 MKD local-for-local Market structure 20121) 0-40%

Other C, D, SUV MPV/ 4% E A000 A00 Foot in 10% Van 3% 2% 4% 26% >0% the door Pick- B up 30% 19% A0 40% Low Medium High Sedan Production volume Hatch 25% 16% A 21%

1) Source: IHS Automotive (data status: July 2013) 31 Improved segment and market exposure provides stable earnings platform1)

Passenger Cars Group Deliveries Production Segments Operating Profit2)

2% 14% 12% 2% 16% 12% 14% 50% 47% 3% 4% 15% 42% 17% 2007 2007 2007 2007 7% 30% 39% 9% 39% 8% 17% 11% 7% 12% 4% 1% 10% 9% 10% 32% 35% 12% 55% 2013 2013 34% 2013 31% 2013

23% 39% 6% 39% 14% 9% 7% • Western Europe Asia-Pacific • SUV • Premium cars CV, PE3) • Central & Eastern Europe South America • Hatchback Other • Volume cars FS • North America Rest of World • Sedan 1) 2013 figures are preliminary, excluding MAN and Scania. Porsche fully consolidated as from 1 August 2012 2) Split of Group Operating Profit excluding Other / Consolidation and PPA, Jan - Sep 2013 vs. Jan - Dec 2007 3) Commercial Vehicles / Power Engineering business area 32 Volkswagen Group toolkit strategy and responsibilities

Continuous roll-out of toolkit strategy across segments, regions and brands

A000 A00 A0 A B C D E Responsibilities NSF New Small Family MQB Modular Transverse Toolkit MLB Modular Longitudinal Toolkit MSB MSB Modular Standard Drivetrain Toolkit

Vehicle price MLB

MQB NSF

Established markets Emerging markets Vehicle classes

33 Global roll-out of toolkits supports flexibility and localization

MQB & MLB share in Global roll-out of toolkit strategy Volkswagen Group production

MQB locations (year-end) 2012 5 2014 >10 20122013 2014 2015 2016 2016 >20 MQB MLB Rest Existing MQB production locations MQB volume China

34 MQB – Driving forward economies of scale in unit cost, investment and supporting achievement of emission targets

Distribution of MQB savings Different powertrains

MQB platform The MQB's flexible design is able to ca. 60% of total accommodate alternative drives: material costs

Lower cost per unit Additional serial and option content Less EHpV1) Savings to be partly Less one-off expenditures absorbed to fulfill regulatory and legal = Potential savings requirements

Margin improvement

Savings Expenditures Invest

1) Engineered Hours per Vehicle 35 Driving the future – Serving all customer needs1)

2013 2014

+ + Hybrid vehicle Volkswagen Porsche Audi Volkswagen (PHEV) XL1 918 Spyder S E-Hybrid A3 e-tron Golf PHEV

+ Battery vehicle Volkswagen Volkswagen (BEV) e-up! e-Golf

CNG Compressed Audi Volkswagen SEAT ŠKODA ŠKODA SEAT Natural Gas A3 g-tron Golf TGI León TGI Octavia Sedan Octavia Combi León ST

Ethanol2) Volkswagen Volkswagen Volkswagen Volkswagen Volkswagen Volkswagen Saveiro Gol Rallye Fox Bluemotion up! CrossFox SpaceFox 1) Market introduction of Volkswagen Group models with alternative drivetrains 2) Developed for distribution in the Brazilian market 36 Commercial Vehicles – A cornerstone in Volkswagen Group’s Strategy 2018

Automotive Division Commercial Vehicles / Power Engineering

37 The business model for commercial vehicles in advanced economies

Buyers of transport services

Logistics solutions

Commercial Transport Vehicle companies Brand Focus on optimal vehicle specification and service package

38 Volkswagen Commercial Vehicles

Deliveries to customers (‘000 units) Earnings potential LCV 800 Finance & leasing +15% Rest of world +4% 600 +21% +9% +1% +23% Asia Pacific Spare parts -21% Increase in earnings business 400 Service along the whole Central & Eastern business value chain 200 Europe Maintenance Western Europe Automotive contracts business Mobility guarantees 2012 future

Operating profit margin Key drivers to achieve targets 8% 7-8% 5.9% ■ Improving positioning in a difficult economic environment 6% 5.0% 4.5% 3.9% ■ Renewal of model range 4% 3.3% 3.1% ■ Improving business case for light commercial vehicles 2% ■ Regional diversification in sales and production 0% ■ Increase production efficiency

1) Including former Volkswagen Caminhões e Õnibus Industria e Comercio de Veiculos Comerciais Ltda 39 Scania

Deliveries to customers (‘000 units) Carbon dioxide emissions per tonne-km

100 +26% Logistics +16% -3% Rest of world -16% Drivers 75 +47% Asia Pacific Vehicle engineering Support from: 50 -41% Latin America Biofuels ■ Customer Eurasia 25 collaboration Europe – 50% ■ Legislators

2000 2020 Operating profit margin Key drivers

■ Strengthen market position and increase of market share 20% 16.3% 14.4% 14.1% ■ Expansion of sales and services capacity in fast-growing 15% 14.1% 10.4% markets 10% ■ Leading in quality with efficient and sustainable 4.0% 5% technology

0% ■ Prioritized R&D investments aimed at strengthening competitiveness

40 MAN Commercial Vehicles

Deliveries to customers (‘000 units) Efficient transport solutions 200 +23% 150 +53% -14% Buses Continuous +15% +3% development 100 -10% Trucks of product range 50 and customer oriented service solutions

Operating profit margin Key drivers

12% 10.0% 10.0% ■ Organic and profitable growth worldwide – strengthening 9% 7.7% of backbone Europe and Latin America and expansion of business to overseas countries 6% 5.0% 3.9% ■ Leading in quality with efficient and sustainable 3% 0.7% technology 0% ■ Further development of after sales product portfolio

1) Integration of MAN Latin America (formerly Volkswagen Caminhões e Õnibus Industria e Comercio de Veiculos Comerciais Ltda) 41 Future orientation of the alliance between MAN, Scania and Volkswagen

. MAN, Scania and Volkswagen Commercial Vehicles will leverage synergies and jointly harness the substantial worldwide growth potential Financial Services Automotive Division in this segment. Division . Volkswagen has concluded a domination and profit and loss transfer Business Area Business Area agreement with MAN SE to strengthen and simplify cooperation in the Passenger Cars Commercial Vehicles, Group Commercial Vehicles business. The agreement was entered in Power Engineering the commercial register on 16 July 2013 and has been effective since that date.

Business unit of Voting rights: 75.18%1) Voting rights: 89.2%1) . Current market conditions mandate a focus on production levels and Volkswagen AG Capital: 73.89%1) Capital: 62.6%1) costs.

. The target is to achieve €200 million per annum in synergies between MAN, Scania and Volkswagen. We anticipate higher synergy potential in the medium to long term.

. Initially, these will relate to procurement activities, followed in the medium and long term by a closer cooperation in research and development as well as production.

1) As per 30 September 2013 The stake in Scania held by MAN is attributable to Volkswagen. 42 VW Financial Services1): A global, well diversified and successful business

Strong global presence Continuous portfolio expansion

in million units 3,657 3,281 Existing 2,691 2,148 2,246 Total markets 2,169 1,964 1,808 1,923 1,508 1,524 1,623 portfolio 1,336 1,505 Focus 10,399 4,551 4,819 markets 3,097 3,163 3,567 3,712 3,930 Start / market entry

Financing Leasing Insurance / Services Rising penetration rates Diversified funding structure

40.7% 43.3% Equity, liabilities to Asset backed securitization 36.3% w/o China 13% 32.5% 32.9% 34.9% affiliated companies, 24% other with China 27.5% 28.5% 26.4% 25.0% 24.7% 25.4% 40% Bonds, 23% Commercial Paper, liabilities to financial Customer deposits institutions

Sep 2013: €113 bn

1) VW Financial Services does not include financial service activities of MAN, Scania, Porsche AG and Porsche Holding Salzburg 43 VW Financial Services – Credit and residual value risks well under control

Credit risk remains at low level despite Residual value risks well covered by provisions challenging market environment

1,187,659 2.5% 1,097,390 Provision Ratio 1,008,279 2.2% Units 917,662 2.0%

553 543 517 548 482 489 0.7% € per unit 400 Ø Dynamic 470 Loss Ratio 0.5% 0.5% 645 657 567 0.9% €m 503 486 536 0.8% 431 403 0.6% 0.6% 0.6% 0.5% 0.4% 0.4% 0.3% Dec 2011 Jun 2012 Dec 2012 Jun 2013 Residual Value Risk Provision 2010 2011 2012 RV Risk per car Provision per car Retail Financing Leasing Corporate Financing Units

44 Strong benefits for automotive through captive

Equipment Turnover Brand Loyalty

+48% +33% +19%

Holding Period (years) Cash Payer Captive Customer

7.2 76% 64% 148% 4.8 100% 36% 24%

Cash Payer Captive Customer Cash Payer Captive Customer Switch to Competitor Stay Loyal

EU-5 markets 45 Volkswagen Group – Core strategic achievements provide foundation for robust shareholder returns

Continuous development of Expansion of product portfolio and outstanding product portfolio 1 execution of toolkit strategy

Expansion of international sales Focus on growth markets and segments & production footprint 2

Integrated Automotive Leveraging of synergies within the Group Group 3

Start-up Strict cost and investment discipline of MQB 4

DPLTA1) 5 Improving processes and structure

2007 2008 2009 2010 2011 2012 2013 Moving forward …

1) Domination and Profit & Loss Transfer Agreement 46 Volkswagen’s Automotive Division further strengthens innovation and technology leadership

Investments in property, plant and equipment Investment Program 2014 to 2018

€ billion / in % of sales revenue 10.3 €84.2 bn €41.2 bn Modernizing and 7.9 extending the €63.4 bn product range Investments in property, plant and equipment 5.8 5.7 5.9% €22.2 bn Capex to sales ratio Cross-product investments 5.6% between 6 and 7% 6.2% €19.5 bn 9M: Capitalized R&D 9M: €1.3 bn Others 6.4 5.0% 6.0 2014 - 2018 (5.0%) (4.6%) • Over two-thirds will continue to flow into increasingly efficient vehicles, drives and technologies, as well as environmentally friendly production

• In addition, China JVs will invest a total of €18.2 bn in new production facilities 2009 2010 2011 2012 2013 2014 … and products (fully self funded)

Note: All figures shown are rounded. 47 Strong cash generation and sufficient net liquidity

Operating cash flow and investments (automotive) Net liquidity (automotive) €bn €bn 18.6 17.0 16.6 17.1 16.2 14.7 13.7 12.8 13.9 13.5 8.0 8.8 7.7 6.9 6.1 5.2 3.7 -0.1 10.6 10.6 -5.7 -7.6 -7.0 -8.9 -9.4 -8.6 8.0 -12.5 -0.9 -2.1 -2.7 -2.6 -1.6 -6.6 -3.9

Q1-3 2007 2008 2009 2010 2011 2012 2013

Op. cash flow Investing cash flow1) Equity investments 2) Net cash flow3) 2007 2008 2009 2010 2011 2012 Q1-3 2013

1) Cash flow from investing activities attributable to operating activities excl. cash flow from acquisition and disposal of equity investments 2) Cash flow from acquisition and disposal of equity investments 48 3) Net cash flow before acquisition and disposal of equity investments Continuous dividend development on a sustainable basis

Development of dividend pay-out… … and adjusted pay-out ratio1)

in € per share 30% 3.56 3.50

3.00 3.06 17.8% 15.7%

2011 2012 2011 2012 Mid-term Volkswagen Ordinary Shares target Volkswagen Preferred Shares

1) Total dividend in percent of net income attributable to shareholders adjusted for noncash income mainly from the updated measurement of the put/call rights relating to the acquisition of the stake in Porsche AG indirectly held by Porsche SE, as well as the remeasurement of the existing stake held at the contribution date 49 Volkswagen Group: Global automotive leader 2018

Economic and environmental leadership in the global automotive industry

Economic leadership Environmental leadership

Expansion of brand and product portfolio Diversified portfolio of drivetrain technologies

Increasing global footprint and emerging markets presence Continuous improvements in internal combustion engines

Realization of cost savings, toolkit modularization and Leadership in alternative powertrain technologies localization of products 25 percent less energy and water consumption, Creation of sustainable value waste and emissions in Group production

50 Appendix

51 Volkswagen Group – Headline Figures (January to September 2013)

2013 20122) +/- (%) Deliveries to customers1) '000 units 7,185 6,855 4.8 Vehicle sales1) '000 units 7,241 6,978 3.8 Production1) '000 units 7,232 6,974 3.7

Sales revenue € million 145,673 144,226 1.0 Operating profit € million 8,557 8,857 -3.4 Profit before tax € million 9,399 22,957 -59.1 Profit after tax € million 6,702 20.152 -66.7

Automotive Division3) Cash flows from operating activities € million 14,713 11,935 23.3 Cash flows from investing activities4) € million 10,264 11,331 -9.4 Of which investments in property, plant & equipment € million 6,436 5,955 8.1 Net cash flow € million 4,449 604 - Net liquidity at September 30 € million 16,649 9,215 80.7

1) Volume data including the unconsolidated Chinese joint ventures. These companies are accounted for using the equity method. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. 2012 deliveries updated on the basis of statistical extrapolations. 2) The prior-year figure was adjusted due to the revised IAS 19. 3) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 4) Excluding acquisition and disposal of equity investments: January – September €8,624 million (€7,408 million). 52 Volkswagen Automotive Division Research and development costs

January – September 2012 January – September 2013 € million

10,000

8,000 2,558 30.3% 1,740 1,682 6,000 24.1% 1,393

8,431 4,000 7,613 6,985 6,695

2,000

0 Total of which amortization Recognized Total of which amortization Recognized R&D costs capitalized in the income R&D costs capitalized in the income statement statement

53 Volkswagen e-Golf

54 Volkswagen Golf Sportsvan

55 Audi S3 Sedan

56 Audi SQ5

57 ŠKODA Rapid Spaceback

58 ŠKODA Octavia

59 SEAT Leon ST

60 Porsche Macan S

61 Porsche 918 Spyder Hybrid

62 Bentley Continental GT V8 S Convertible

63 Lamborghini Huracán LP 610-4

64 Ducati 899 Panigale

65 Volkswagen Amarok

66 MAN TGX Euro 6

67 Scania R 730 6x4

68 Volkswagen Group: Financial sustainability on core strengths Christine Ritz & Andreas Buchta Group Investor Relations, Volkswagen Aktiengesellschaft German Investment Seminar, New York, 13-14 January 2014