Factbook 2013

12 9.3 million 550,000 153 fascinating brands Vehicles sold in 2012 Employees worldwide countries

1 “2012 was a challenging year in the automotive world. Nevertheless, we can say that 2012 was a good – in fact a very good – year for the Volkswagen Group. Regardless of whether there is an upturn or a downturn going on, our goal is to ensure the Volkswagen Group reaches the top of the automotive industry by 2018.” Prof. Dr. Martin Winterkorn Chairman of the Board of Management

2 Content

Volkswagen at a Glance 3 Our Brands & Products 8 Our Markets 24 Financials & Outlook 34 Strategy 2018 45 Excellence in Production 51 Focus on R&D 59 Forming an Integrated Group 68 Shareholder Information 71 Team 77

Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Glance Products Outlook Production Integrated Group Information 3 Volkswagen at a Glance

The Volkswagen Group with its headquarters in Wolfsburg is one of the world‘s leading automobile manufacturers and the largest carmaker in Europe. The Group operates 100 production plants. Every weekday, 550,000 employees Headquarters Dec. 1945: start of 12 brands from 7 550,000 100 production Wolfsburg series production European countries employees plants worldwide1 worldwide produce some 37,700 vehicles, and work in vehicle- related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries. In 2012, the Group increased the number of vehicles delivered to customers to 9.3 million (2011: 37,700 vehicles a 280 models 9.3 m deliveries to Active in Profit after tax: 8.3 million), corresponding to a day customers 153 countries €22 billion share of 12.8 percent of the Note: 2012 figures. world passenger car market. 1 Including Silao plant (Mexico) which started production in January 2013.

The Volkswagen Group consists of three divisions: Passenger Cars, Commercial Financial Services Vehicles and Power Engineering and Automotive Division Division Financial Services. The Passenger Cars Division is centered Commercial Vehicles, Volkswagen Passenger Cars on the development of vehicles and engines Power Engineering Financial Services as well as the production and sale of passenger cars. The Commercial Vehicles and Power Europe / Asia-Pacific / North- and South America Engineering Division deals with the production and sale of trucks and busses, Financial Services and business comprising genuine parts, USA / Canada / Spain / large-bore diesel engines, turbomachinery, Argentina special gear units, propulsion components 1 2 Scania Financial Services and testing systems. MAN Financial Services The Financial Services Division’s portfolio Porsche Holding Financial of services combines dealer and customer Services financing, leasing, banking and insurance Remaining companies Porsche Financial Services activities and fleet management. 1 Fully consolidated as from August 1, 2012. 2 Consolidated as from July 19, 2012.

(from left to right) Prof. Dr. rer. pol. Dr.-Ing. E. h. Jochem Heizmann China

Prof. Dr. rer. pol. Horst Neumann Human Resources and Organization

Christian Klingler Sales and Marketing

Dr. h. c. Leif Östling Commercial Vehicles

Dr. rer. pol. h. c. Francisco Javier Garcia Sanz Procurement

Prof. Dr. Dr. h.c. mult. Martin Winterkorn Chairman of the Board of Management of Volkswagen Aktiengesellschaft Research and Development

Hans Dieter Pötsch Finance and Controlling

Prof. Rupert Stadler Chairman of the Board of Management of AUDI AG

Dr.-Ing. E. h. Michael Macht Production

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Glance Products Outlook Production Integrated Group Information 6 Volkswagen Polo BlueGT

Volkswagen XL1

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Glance Products Outlook Production Integrated Group Information 7 Content

Volkswagen at a Glance 3 Our Brands & Products 8 Our Markets 24 Financials & Outlook 34 Strategy 2018 45 Excellence in Production 51 Focus on R&D 59 Forming an Integrated Group ______68 Shareholder Information 71 Team 77

Volkswagen is the most successful multibrand group in the automotive industry. The Group consists of twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its own character and operates as an independent entity in the market to better satisfy the specific needs of the different segments and countries. On August 1, 2012, the integration of Porsche into Volkswagen AG was completed. The brand is now fully consolidated into the Volkswagen Group.

Body- Hatch- Con- Road- City Van Pick- World 2013 style Saloon Estate MPV SUV Coupé Trans- With one of the back vertible ster Up Segment porter broadest product and segment E 1 coverage of any OEM2, Volkswagen is well positioned to D 1 1 1 capture profitable growth.

C 1 The product range extends from low- consumption small B 1 1 cars to luxury class vehicles. In the commercial vehicle A sector, the product offering spans pick- A0 ups, busses and heavy trucks. This huge portfolio A00 enables us to reach all major target Note: Without Scania and MAN. Segments > 1m cars Product to be launched in 2013 customer groups. 1 Porsche AG fully consolidated from August 1, 2012. 2 Original Equipment Manufacturer.

KEY FIGURES 2012 2011 % VII generation Deliveries (´000 units) 5,738 5,091 +12.7 OF THE GOLF LAUNCHED IN 2012

Vehicle sales (´000 units) 4,850 4,450 +9.0 The “Volkswagen – Das Auto” slogan unites the three core messages that distinguish the Production (´000 units) 5,772 5,272 +9.5 Volkswagen Passenger Cars brand: innovative, offering enduring value and responsible. Sales revenue (€ million) 103,942 94,690 +9.8 The Volkswagen Passenger Cars brand Operating profit (€ million) 3,640 3,796 -4.1 premiered a large number of new vehicles in as % of sales revenue 3.5 4.0 2012. As the highest-volume Group model and one of the biggest-selling cars worldwide, the focal point was the new, seventh generation Golf, MOST PRODUCED IN 2012 which is still setting new standards in the Passat/Santana Jetta/Bora Golf compact segment. The brand also started selling the natural gas- fueled eco up!. In addition, the third generation of the Beetle Convertible celebrated its world premiere at the end of the year. Note: Pictures are only examples; regional variations exist.

KEY FIGURES 2012 2011 % 10.6 % Deliveries (´000 units) 1,457 1,304 +11.7 INCREASE IN SALES REVENUE IN 2012 In the premium segment, Audi has become one Vehicle sales (´000 units) 1,299 1,543 - 15.9 of the strongest car brands worldwide under the Production (´000 units) 1,468 1,345 +9.2 slogan of “Vorsprung durch Technik”. Its objective is to become the market leader in this segment. Sales revenue (€ million) 48,771 44,096 +10.6 To do this, Audi relies heavily on its sporty, high- quality and progressive image. Operating profit (€ million) 5,380 5,348 +0.6 The Audi brand put its technical and sporting as % of sales revenue 11.0 12.1 expertise to the test in 2012 and again met its own high standards. MOST PRODUCED IN 2012 In the premium compact segment a highlight was A4 A6 Q5 the market launch of the third generation of the successful Audi A3, the first Group model to be based on the Modular Transverse Toolkit. Audi began producing the Q7 in India in the reporting period. This is the fourth model to be manufactured locally. Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 12 Prof. Dr. ŠKODA Winfried Vahland CEO

KEY FIGURES 2012 2011 % 727 thousand Deliveries (´000 units) 939 879 +6.8 VEHICLES SOLD IN 2012

Vehicle sales (´000 units) 727 690 +5.2 With its “Simply clever” slogan, ŠKODA has become one of the fastest emerging brands, Production (´000 units) 943 902 +4.6 particularly in Europe and China.

Sales revenue (€ million) 10,438 10,266 +1.7 The brand image is dominated by a compelling value proposition and an attractive design, coupled Operating profit (€ million) 712 743 -4.1 with intelligent ideas for the use of space that are as % of sales revenue 6.8 7.2 technically simple but offer refined and practical details. The numerous awards for its ambitious, innovative and sophisticated vehicle design are MOST PRODUCED IN 2012 proof of the high recognition for this brand concept. Octavia Fabia Superb With the new Rapid – which has been available on the Indian market since 2011 - the ŠKODA brand presented a compact notchback saloon, specifically designed for global growth markets like China and Russia, as well as price-sensitive customer segments in Europe. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 13 SEAT James Muir CEO

KEY FIGURES 2012 2011 % €6.5 billion Deliveries (´000 units) 321 350 -8.3 SALES REVENUE IN 2012

Vehicle sales (´000 units) 429 362 +18.8 Models that regularly win awards for their outstanding design are representative of Spanish Production (´000 units) 321 353 -9.0 SEAT brand’s image.

Sales revenue (€ million) 6,485 5,393 +20.2 SEAT is aiming for stronger growth, particularly in Europe, by sharpening its brand profile and Operating profit (€ million) -156 -225 +30.7 focusing on its distinctive brand values of being as % of sales revenue -2.4 -4.2 dynamic, young and design-oriented. The new brand claim “Enjoyneering” suitably expresses the character of the brand as a passionate MOST PRODUCED IN 2012 perfectionist and emotional technology leader. Ibiza Leon Altea/Toledo SEAT updated the Leon – the brand’s first vehicle to be based on the Modular Transverse Toolkit and introduces equipment features from the premium class into the compact segment for the first time. The launch of the four-door version of the Mii small car was also significant. Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 14 Dr. Bentley Wolfgang Schreiber CEO

KEY FIGURES 2012 2011 % €100 million Deliveries (units) 8,510 7,003 +21.5 OPERATING PROFIT IN 2012

Vehicle sales (units) 9,186 7,402 +24.1 „To build a good car, a fast car, the best in class“ – this was the mission of W.O. Bentley when he Production (units) 9,107 7,593 +19.9 founded Bentley Motors in 1919. Still today, the Sales revenue (€ million) 1,453 1,119 +29.9 definitive British luxury car company dedicates itself to developing and crafting the world’s most Operating profit (€ million) 100 8xdesirable high performance cars with the stamina as % of sales revenue 6.9 0.7 to cross continents at pace, and drive in refined comfort and style. Bentley is located in Crewe, England and belongs to the Volkswagen Group MOST PRODUCED IN 2012 since 1998. Continental GT Coupé Continental GT Cabriolet In 2012, Bentley launched an energy-efficient alternative to the twelve-cylinder version: the V8 engine. This was used in the new version of the Continental GT launched in 2010 and the Continental GTC that made its debut in 2011.

KEY FIGURES 20121 16.1% Deliveries (´000 units) 60 OPERATING RETURN ON SALES IN 2012

Vehicle sales (´000 units) 62 Porsche is an iconic sports and luxury car brand with leading profitability. High performance meets Production (´000 units) 64 outstanding everyday practicality, breathtaking Sales revenue (€ million) 5,879 dynamics, exceptional occupant comfort and safety. Operating profit (€ million) 946 Porsche is investing in rejuvenating and as % of sales revenue 16.1 expanding its entire model range. In 2012, the

1 fully consolidated as from August 1. new edition of the Porsche Boxster got the process underway. This will be followed in 2013 MOST PRODUCED IN 2012 with the all-new Cayman. Cayenne911 Panamera On August 1, 2012, the integration of Porsche AG into Volkswagen AG was completed. The brand is now fully consolidated into the Volkswagen Group.

Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 16 Dr. Volkswagen Commercial Vehicles Eckhard Scholz CEO KEY FIGURES 2012 2011 % 550 thousand Deliveries (´000 units) 550 529 +4.1 VEHICLES DELIVERED IN 2012

Vehicle sales (´000 units) 437 441 -0.8 Volkswagen Commercial Vehicles stands for superior mobility with its three core values of Production (´000 units) 487 508 -4.1 reliability, economy and partnership. The brand Sales revenue (€ million) 9,450 8,985 +5.2 offers a range of different transport solutions at the highest levels of engineering for different customer Operating profit (€ million) 421 449 -6.1 groups. The light commercial vehicles are tailored to meet the individual transportation needs of as % of sales revenue 4.5 5.0 customers in retail and craft businesses, as well as civil authorities and service providers. Private MOST PRODUCED IN 2012 customers value family-friendly MPVs and leisure- Caravelle/Multivan Saveiro Amarok oriented motor homes. Volkswagen Commercial Vehicles introduced two new special models – the Caddy Edition 30 and the Multivan Edition 25 – and thus confirmed its decades-long dominance of the light commercial vehicles market.

KEY FIGURES 2012 2011 % 10 % Deliveries (´000 units) 67 80 -15.9 OPERATING RETURN ON SALES IN 2012

Vehicle sales (´000 units) 67 80 -15.9 The Swedish Scania brand follows the core values of “customer first”, “respect for the Production (´000 units) 67 84 -20.4 individual” and “quality”. For over 100 years, this successful company has been manufacturing Sales revenue (€ million) 9,314 10,064 -7.4 high-performance trucks and buses featuring Operating profit (€ million) 930 1,372 -32.2 extremely innovative technology. The brand offers its customers efficient transport solutions as % of sales revenue 10.0 13.6 backed by service offerings and financial services. MOST PRODUCED IN 2012 Scania started to build a new CKD plant in Trucks Buses & Coaches Narasapura in India, which is scheduled to start assembling trucks and buses for the Indian market in 2013. In 2012, the first Scania trucks whose engines meet the new Euro 6 emissions standard were registered. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 18 Dr. Georg MAN Pachta- Reyhofen CEO KEY FIGURES 2012 2011 1 135 thousand ORDERS RECEIVED FOR COMMERCIAL Deliveries (´000 units) 134 25 VEHICLES IN 2012

Vehicle sales (´000 units) 134 25 MAN’s roots can be traced back to 1758. The core values of the MAN brand are reliability, innovation, Production (´000 units) 124 24 dynamic strength and openness. These values are key success factors for MAN, one of Europe’s Sales revenue (€ million) 15,999 2,652 leading manufacturers of commercial vehicles, Operating profit (€ million) 808 193 engines and mechanical engineering equipment. The company manufactures diesel engines, as % of sales revenue 5.0 7.3 turbomachinery and special gear units, alongside 1 November 9 to December 31, 2011. trucks and buses. MOST PRODUCED IN 2012 MAN launched the new premium NEOPLAN Trucks Buses & Coaches Jetliner, which can be used as both a public service bus and coach. The new MAN TG family of trucks celebrated their world premiere in 2012. They already meet the requirements of the future Euro 6 emission standard. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 19 Lamborghini & Bugatti

Dr. Stephan Wolfgang Winkelmann Schreiber CEO CEO LAMBORGHINI BUGATTI

Lamborghini stands for extreme and uncompromising Bugatti has always been the epitome of exclusivity, super sports cars of the best Italian tradition. luxury, elegance, style and extraordinary design, Lamborghini redefined the future of its super sports driven by a great passion for automobiles. cars and decided to focus more on weight reduction Unique visions, the strong legacy of legendary sports than on top-speed. Extensive use of carbon fibre, cars that date back to the year 1901, and high- even at a structural level, allows Lamborghini to be at precision engineering in development, construction, the forefront of development techniques. and manufacture distinguish this outstanding Lamborghini presented a new, even more striking automotive brand. design of its most successful super sports car ever, Bugatti confirmed its unique position by launching the the Gallardo LP 560-4 as a Coupé and Spyder. Veyron Grand Sport Vitesse, the fastest roadster of all time with a top speed of 431 km/h. AVENTADOR VEYRON

The Financial Services Division, which corresponds to the Financial Services segment, combines dealer and costumer financing, leasing, banking and insurance activities, fleet FINANCIAL management and mobility offerings. AUTOMOTIVE DIVISION SERVICES DIVISION Management focuses on increasing the return on equity in the Financial Services Division. Additional goals are to meet Volkswagen Financial Services the banking authorities’ regulatory capital requirements, to support its external rating by ensuring capital adequacy and Scania Financial Services to procure equity for the growth planned in the next fiscal years. In the process, it aims overall to achieve the highest possible growth in the value of the Group and its divisions MAN Financial Services for the benefit of all the Company’s stakeholder groups. The Financial Services Division once again made a Porsche Holding Salzburg – significant contribution to the Group’s earnings with an Financial Services operating profit of €1.6 billion (€1.3 billion). Return on equity before tax was lower than in the previous year at 13.1% Porsche Financial Services1 (14.0%).

1 Fully consolidated as from August 1, 2012.

Total Assets (€ million) 111,053 97,455 +14.0 17.1 % INCREASE IN OPERATING PROFIT Receivables (€ million) 77,197 69,328 +11.4 Volkswagen Financial Services is the largest Direct Banking Deposits (€ m) 22,004 21,373 +3.0 automotive financial services provider in Europe Equity (€ million) 11,312 9,785 +15.6 presently employing more than 10,133 employees worldwide, of which 4,971 work in Germany. Operating profit (€ million) 1,410 1,203 +17.1 Volkswagen Financial Services offers financial CONTINUOUS PORTFOLIO GROWTH (CONTRACTS `000) services for more than 60 years in close cooperation with the Volkswagen Group brands in 3,281 42 countries worldwide. 2,691 2,246 2,452 2,148 Total 1,808 Volkswagen Financial Services’ portfolio includes 1,623 Portfolio 1,508 1,524 dealer and customer financing, leasing, banking 1,506 9,640 and insurance activities, as well as fleet 4,551 3,162 3,567 3,712 3,930 management.

2008 2009 2010 2011 2012 Finance Leasing Service / Insurance

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 22 Audi SQ 5

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 23 Content

With its twelve brands, the Volkswagen Group has a presence in all important automotive markets around the world. It is the goal of the Group to offer KEY MARKETS attractive, safe and environmentally sound vehicles which are competitive and which set world standards in their respective classes. Currently, the key markets include WORLDWIDE DELIVERIES OF THE GROUP‘S MOST SUCCESSFUL MODELS Western Europe, China, Brazil, the IN 2012 (´000 units) US, Russia, Argentina and Mexico. The Group continued to extend its strong competitive position in 2012 thanks to its wide range of attractive and environmentally friendly models. We have increased our market share in key markets and again recorded an encouraging global increase in demand.

DELIVERIES (`000 units) AND MARKET SHARE (in %) 2012 2011 %

Deliveries market 13,153 14,433 -8.9 37.7% thereof: Germany 3,309 3,414 -3.1 MARKET SHARE IN GERMANY IN 2012 The overall market slowdown in Western Europe Deliveries Group 3,023 3,130 -3.4 in 2012 resulted in our deliveries to customers in thereof: Germany 1,176 1,153 +1.9 the region declining year-on-year. Our sales figures were down on the previous year in all Market share WE 24.4 23.0 major markets in this region, apart from Germany Market share GER 37.7 35.9 and the United Kingdom. Except for SEAT, all volume brands sold more vehicles in the Deliveries of passenger cars and light commercial vehicles. reporting period than in the previous year. The Tiguan, Audi A6, ŠKODA Roomster, ŠKODA OUR TOP SELLER IN THE MARKET Yeti, SEAT Alhambra, Amarok and Crafter Golf models all registered positive growth rates. The new up!, Beetle, Golf Cabriolet, Audi Q3, ŠKODA Citigo and SEAT Mii models were also very popular. Volkswagen maintains 50 plants in Western Source: IHS Automotive (data status: 15/02/13), rounded. Note: Market = Cars and LCVs. Europe, 28 of which are situated in Germany. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 26 Central and Eastern Europe (CEE)

DELIVERIES (`000 units) AND MARKET SHARE (in %) 2012 2011 %

Deliveries market 4,295 4,027 +6.7 38.8% thereof: Russia 2,953 2,690 +9.8 INCREASE IN DELIVERIES IN RUSSIA IN 2012 The Volkswagen Group’s sales figures in Central Deliveries Group 644 548 +17.6 and Eastern Europe surpassed the prior-year thereof: Russia 318 229 +38.8 level by 17.6%. We recorded the highest growth rates in Russia (+38.8%) and the Ukraine Market share CEE 15.4 13.9 (+29.6%). Market share Russia 11.1 8.9 The Polo Sedan, Tiguan, Passat, CC, Touareg,

Deliveries of passenger cars and light commercial vehicles. the Audi A3, A6 and Q7, the ŠKODA Octavia and all Volkswagen Commercial Vehicles models experienced higher demand in Central and OUR TOP SELLER IN THE MARKET Eastern Europe than in the previous year. The ŠKODA Octavia new Jetta, Audi Q3 and ŠKODA Citigo models were also very popular. Volkswagen maintains 17 plants in CEE, one of which is located in Russia.

Source: IHS Automotive (data status: 15/02/13), rounded. Note: Market = Cars and LCVs.

DELIVERIES (`000 units) AND MARKET SHARE (in %) 2012 2011 %

Deliveries market 17,170 15,266 +12.5 34.2% thereof: US 14,497 12,779 +13.4 INCREASE IN DELIVERIES IN THE US IN 2012

Deliveries Group 842 667 +26.2 Demand for Group vehicles in the US market grew by 34.2% year-on-year, outperforming the positive thereof: US 596 444 +34.2 trend in the overall market (+13.4%). The Golf, Tiguan, Passat, Audi Q5, Audi A6 and Audi Q7 Market share NAR 4.9 4.3 models recorded the highest growth rates. Market share US 4.1 3.5 In Canada the Group recorded year-on-year growth

Deliveries of passenger cars and light commercial vehicles. of 15.7%. Demand for the Passat, Touareg, Audi A4, Audi Q5 and Audi A7 models was encouraging there. OUR TOP SELLER IN THE MARKET The Group’s sales figures in Mexico surpassed the Volkswagen Jetta prior-year level by 7.8%. Demand increased for the Voyage, Beetle, Passat, Audi A1 and SEAT Ibiza models. Besides one plant in the US the group maintains three plants in Mexico. Source: IHS Automotive (data status: 15/02/13), rounded. Note: Market = Cars and LCVs.

DELIVERIES (`000 units) AND MARKET SHARE (in %) 2012 2011 %

Deliveries market 5,843 5,581 +4.7 23.0% thereof: Brazil 3,634 3,417 +6.3 MARKET SHARE IN BRAZIL IN 2012 The Volkswagen Group’s deliveries in the South Deliveries Group 1,010 933 +8.2 America region rose 8.2% in 2012. thereof: Brazil 780 705 +10.7 After declining slightly in 2011, our sales figures in Market share SAR 19.6 18.9 Brazil were again positive in 2012 (+ 10.7%). This was attributable to a temporary tax cut for new Market share Brazil 23.0 22.3 vehicles as well as the market launch of the new

Deliveries of passenger cars and light commercial vehicles. generations of the Gol and the Voyage. The Fox was also highly popular and sales of the Amarok almost doubled. OUR TOP SELLER IN THE MARKET Demand for Volkswagen Group vehicles declined Volkswagen Gol by 5.1% in Argentina. The Fox, Audi A3 and Saveiro models recorded stronger demand. With a market share of 25.0%, the Volkswagen Group maintained its market leadership. Volkswagen maintains nine plants in South Source: IHS Automotive (data status: 15/02/13), rounded. Note: Market = Cars and LCVs. America: six in Brazil and three in Argentina. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 29 Asia-Pacific

DELIVERIES (`000 units) AND MARKET SHARE (in %) 2012 2011 %

Deliveries market 33,669 30,370 +10.9 24.5% thereof: China 18,834 17,629 +6.8 INCREASE IN DELIVERIES IN CHINA IN 2012 The Group increased sales in the Asia-Pacific Deliveries Group 3,170 2,570 +23.3 region by 23.3% compared with the 2011 figure, thereof: China 2,812 2,259 +24.5 outperforming the market as a whole (+13.3%).

Market share Asia-Pacific 12.2 11.3 Growth in the region was again driven by the Chinese market, which saw demand for Group Market share China 20.8 18.2 vehicles rise by 24.5%. Virtually all models Deliveries of passenger cars and light commercial vehicles. contributed to this positive result. We extended our leadership of the Chinese market with a OUR TOP SELLER IN THE MARKET market share of 20.8% (2011: 18.2%).

Volkswagen Lavida Deliveries to customers in the Indian market increased by 2.1%. The Passat, Audi A4, Audi A6 and ŠKODA Rapid models recorded the highest growth rates. Volkswagen maintains 17 plants in Asia Pacific: Source: IHS Automotive (data status: 15/02/13), rounded. Note: Market = Cars and LCVs. 12 in China, four in India and one in Thailand.

17 COMPANIES ASSURE OPERATIONS OF THE VW GROUP The importance of the Chinese market has significantly increased in the past years. car production plants As the automotive pioneer, Volkswagen entered the component plants planned plants modern Chinese market in 1984 founding a joint Headquarter Volkswagen Group China FAW-Volkswagen Changchun (Volkswagen, Audi) venture with the Shanghai Automotive Industrial Urumqi Volkswagen FAW Platform Corporation (Shanghai Volkswagen Automotive Beijing Dalian Volkswagen FAW Engine Company Ltd.). Volkswagen China Tianjin Volkswagen Automatic Investment Company A second joint venture, FAW-Volkswagen Automotive Yizheng Transmission Changzhou (MAN) Company Ltd. was set up in 1991 to expand the Nanjing Shanghai Volkswagen Group’s activities. Today Volkswagen is represented Shanghai Chengdu Ningbo Shanghai Volkswagen by 17 companies producing at eleven facilities – (Volkswagen, ŠKODA) including component, finance and sales companies. FAW-Volkswagen Volkswagen Transmission Foshan A “China” Board of Management function was Shanghai Volkswagen created in 2012 to underpin the growing significance Powertrain of the Chinese market.

EARNINGS 2012 (€ million) Our Chinese product portfolio now covers all Operating profit (100%) 8,424 segments from small cars to luxury sports cars. We Operating profit (proportionate) 3,678 took account of up-and-coming vehicle classes, such INVESTMENTS (€ billion) as the SUV segment, in our local production at an Total investments 1985-2012 15.7 early stage. The commercial vehicle segment is also Total investments 2013-2015 planned 9.8 gaining in importance for us. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 31 Deliveries of Volkswagen in China January to December 2012

Import FBU1 Locally Produced Since it first embarked on economic (‘000 units) (‘000 units) reform more than 30 years ago, China has become one of the world’s most VW, VWN 88.4 important automotive markets and is FAW-VW 995.9 322.7 now the Volkswagen Group’s largest Audi sales market. 83.1 Porsche2) At the end of the 1990s, the focus 13.0 began to turn to diversifying the SVW 1,068.5 Other Brands 235.7 product range. A crucial factor here 5.2 was the establishment of the import business in 2007, which we had Ʃ 189.7 Ʃ 2,622.8 extended to include all of the Group’s passenger car brands by 2012. Total Deliveries Region China 2,813

A4 L A6 L New Lavida Santana Octavia

1 Including Hongkong. ² Porsche imports only from August-December, FY import units totaled to 31,200. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 32 ŠKODA Octavia

Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 33 Content

Volkswagen can look back on another extremely successful fiscal year. The Volkswagen Group Facts & Figures continued its successful course and further strengthened its market position thanks to its high profitability. Hans Dieter Pötsch Finance and Controlling

■ Deliveries topped the 9 million mark for the first time at 9.3 million vehicles (+ 12.2 percent); market share in key markets increased further ■ Operating profit exceeds record prior-year level at €11.5 billion (+ 2.1%)

■ Volkswagen Group generated a record profit in fiscal year 2012 (net profit €21.9 billion)

■ The Board of Management and Supervisory Board proposed to pay a dividend of €3.50 per ordinary share and €3.56 per preferred share

■ Strategic growth trajectory continues with contribution in full of Dr. Ing. h.c. F. Porsche AG to the Volkswagen Group, increased stake in MAN SE and acquisition of Ducati

■ Net liquidity of €10.6 billion (€17.0 billion) in the Automotive Division provides financial stability and flexibility

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 35 Our Brands Once Again Proved Their Attraction to Customers1 Deliveries in ´000 units +11.2% 10.000 9.074 January to December 2011 9.000 8.160 January to December 2012 8.000

7.000 +12.7%

6.000 5.738 5.091 5.000

4.000

3.000 +11.7% +6.8% 2.000 -8.3% 1.303 1.455 +21.5% +4.1% 879 939 1.000 529 550 350 321 60 7 9 0 Volkswagen Volkswagen Audi ŠKODA SEAT Porsche Bentley Commercial Group Passenger Cars (since 08/12) Vehicles

1 Figures including Porsche as from August 1, 2012; excluding Scania and MAN.

-15.9% -13.7%

156 134 80

2011 2012 2011 2012

1 MAN is consolidated in the Volkswagen Group since 9 November 2011. Delivery figures for the period January – December 2011 are shown for information only. 2 MAN Latin America Trucks and Buses gvw. > 5t.

The Volkswagen Group significantly increased its sales revenue and net profit in 2012. In 2012, the Volkswagen Group generated sales revenue of €192.7 billion (+20.9%) and a record operating profit of €11.5 billion. At €25.5 billion, the Volkswagen Group’s profit before tax was significantly higher than in 2011 (+34.7%) due to positive measurement effects in the financial result. At €21.9 billion, the Volkswagen Group‘s net profit exceeded the prior year figures by around €6.1 billion.

Sales Revenue Operating Profit Profit Before Tax Net Profit € million € million € million € million

25,492 192,676 21,884 18,926 15,799 159,337 11,271 11,510

20102011 2012 2011 2011 2012 2012 20112012 2012 2011 2012 2012

Vehicle Sales Sales revenue Operating result ('000 units)/ € million 2012 2011 2012 2011 2012 2011 Volkswagen Passenger Cars 4.850 4.450 103.942 94.690 3.640 3.796 Audi 1.299 1.543 48.771 44.096 5.380 5.348 ŠKODA 727 690 10.438 10.266 712 743 SEAT 429 362 6.485 5.393 -156 -225 Bentley 9 7 1.453 1.119 100 8 Porsche2 62 - 5.879 - 946 - Volkswagen Commercial Vehicles 437 441 9.450 8.985 421 449 Scania2 67 80 9.314 10.064 930 1.372 MAN2 134 25 15.999 2.652 808 193 VW China3 2.6092.201-- -- 55 Other4 -1.279 -1.438 -36.929 -33.768 -2.682 -1.617 Financial Services Division - - 17.872 15.840 1.410 1.203 Volkswagen Group 9.345 8.361 192.676 159.337 11.510 11.271 Automotive Division 9.345 8.361 172.822 142.092 9.923 9.973 of which: Passenger Cars and LCV Business Area 9.143 8.256 148.021 129.706 9.405 9.042 of which: Commercial Vehicles, Power Engineering Business Area 202 105 24.801 12.386 519 931 Financial Services Division - - 19.854 17.244 1.586 1.298

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. 2 Including financial services; Porsche since August 1, 2012, MAN as from November 9, 2011. 3 The sales revenue and operating profit of the joint venture companies in China are not included in the figures for the Group. The Chinese companies are accounted for using the equity method and recorded an operating profit (proportionate) of €3,678 million (€2,616 million). 4 Including Porsche Holding Salzburg as from March 1, 2011. 5 Mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of the purchase price allocation for Scania, Porsche Holding Salzburg, MAN und Porsche. Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 39 Cash Flows from Operating Activities and Cash Flows from Investing Activities € billion, Automotive Division1

Gross cash flow in the Automotive Division increased slightly year-on-year to €15.8 billion (€15.4 billion) in fiscal year 2012 whereat higher tax payments had a negative impact. Despite the increased business volumes, strict working capital management led to the release of €0.5 billion (€1.7 billion). The overall cash flow from operating activities decreased to €16.2billion (€17.1 billion). A cash outflow arose from the contribution in full of Porsche’s automotive business to the Volkswagen Group and from the acquisition of Ducati. The net cash flow of the Automotive Division decreased by €1.3 billion to €-0.2 billion.

January – December 2011 January – December 2012

17.1 16.2 Net cash flow Net cash flow 1.1 -0.2 16.5 16.0

9.4³ 12.5³

Cash flows from Cash flows from Cash flows from Cash flows from operating activities2 investing activities operating activities2 investing activities³ 1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 2 Before consolidation of intragroup transactions: €17,029 million (€17,868million). ³ Excluding acquisition and disposal of equity investments: €12,528 million (€9,371 million). Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 40 Volkswagen is Financially Stable – Supported by Strong Capital Discipline and Significant Liquidity

INVESTMENTS IN PROPERTY, PLANT AND AUTOMOTIVE NET LIQUIDITY EQUIPMENT, AUTOMOTIVE DIVISION

€ billion / in % of sales revenue € billion

10.3 18.6 17.0

7.9

6.8

5.8 5.7 10.6 10.6

6.6% 8.0 6.2% 5.9% 5.6% 5.0%

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

CAPITAL MARKET PROGRAMS It is part of Volkswagen’s strategy to ensure a solid, stable Authorized Amount utilized financial position at all times. We aim to safeguard an volume on Dec. 31, 2012 adequate liquidity, a healthy financing structure and our rating, Programs € billion € billion which compares extremely well with the rest of the sector. Commercial paper 25.7 5.3 The Automotive Division recorded a cash inflow of €2.6 billion Medium-term notes 68.1 36.9 (€ -4.3 billion) from financing activities. Due to new equity Other capital market programs 21.3 10.1 Asset-backed securities 43.9 18.4 investments, net liquidity in the Automotive Division decreased at the end of fiscal year 2012 to €10.6 billion (€17.0 billion). RATING OVERVIEW In light of the Volkswagen Group’s sustained growth, we Volkswagen Volkswagen Volkswagen further diversified our refinancing activities in 2012. Last year, As of AG Financial Bank GmbH Volkswagen refinanced the equivalent of €25 billion through Dec. 31, 2012 Services AG the issue of bonds, tapping into additional financial markets in Standard & Poor’s the process. short-term A–2 A–2 A–2 In 2012, rating agencies Standard & Poor’s and Moody’s long-term A– A– A– Outlook positive positive positive Investors Service performed their regular update of their credit Moody’s Investors ratings, they confirmed Volkswagen’s very good rating by Service sector standards and raised the outlook. short-term P–2 P–2 P–2 long-term A3 A3 A3 Outlook positive positive positive

Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 42 Outlook 2013 – Volkswagen Group1 ■ Deliveries to customers are expected to increase year-on-year 9.3 ■ Sales revenue is expected to exceed the Deliveries to 8.3 customers 7.2 prior-year figure 6.3 million vehicles ■ While we shall see positive effects from our attractive model range and strong market position, there will also be increasingly stiff 192.7 competition in a challenging market environment Sales 159.3 126.9 ■ Given the ongoing uncertainty in the economic revenue 105.2 environment, the Group’s goal for operating € billion profit is to match the prior-year level in 2013 ■ This applies equally to the Passenger Cars 11.3 11.5 Business Area, the Commercial Vehicles, Power Engineering Business Area – which Operating 7.1 remains affected by high write-downs relating profit to purchase price allocation, among other € billion 1.9 things and the Financial Services Division

2009 2010 2011 2012 2013

1 Including Trucks & Busses (until February 2009); MAN is fully consolidated in the Volkswagen Group since November 9, 2011; Ducati is consolidated as from July 19, 2012; Porsche AG is fully consolidated as from August 1, 2012.

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We have defined four goals that are designed to support Volkswagen becoming the most successful and fascinating automaker by 2018. To achieve these targets we have identified six areas to focus on:

1 Growth market focus • Increased market penetration • Emerging markets expansion 6 Potential upside • Balanced global footprint 2 Modular toolkit strategy • Product portfolio extension • Reduction in investment, • North American expansion development and unit costs and market recovery Leading • Scale and efficiency effects in customer • Commercial vehicle strategy satisfaction • Increased production and market recovery and quality flexibility • Financial Services: Volkswagen • Reduced time to market strengthen the automotive Top Group profit employer before tax value chain margin > 8% Volumes 5 Synergy potential 3 Capital discipline > 10 million • Leveraging best practices units p.a.2 • > 16% RoI target in across the Group automotive business • Purchasing, production, and • 20% RoE1 goal in Financial distribution benefits Services 4 Operating profit measures • Around 6% automotive capex • Strong cost control in PPE/sales 1 Normalized RoE based on 8% equity ratio. • Process/product optimization 2 Including China. • Regional scale effects Source: Volkswagen Group. Note: All stated Volkswagen Group figures represent financial targets for 2018, excluding Porsche, MAN and Ducati.

Volkswagen Group customer satisfaction (on a scale of 1 to 101)

8.67 8.55 8.41 8.22 8.32 8.34

2007 2008 2009 2010 2011 2012

„I am happy to work at the Volkswagen Group“ Group profit before tax margin (Employee opinion survey) Leading in customer (in percent) 90% satisfaction 13.2 88% and quality 11.9 88% 87% Volkswagen Top Group profit 7.83 7.1 6.93 84% employer before tax 6.0 5.8 margin > 8% Volumes > 10 million 1.2 units p.a.2 2007 2008 2009 2010 2011 2012 2007/08 2009 2010 2011 2012

1 Group deliveries Own calculation based on key industry (in million units) studies on customer satisfaction with 9.3 dealers, after sales and new vehicles.

8.3 2 Including China. 7.2 6.2 6.3 6.3 3 Group profit before tax margin excluding the nonrecurring effect from the remeasurement of the Porsche put/call options and from 2007 2008 2009 2010 2011 2012 remeasurement at the contribution date of the shares already held.

FORECAST – MARKET GROWTH 2012 – 2018 (million units) In 2012, we delivered 9.3 million 19.5 vehicles to our customers, 17.2 5.9 substantially up from previous years’ 15.3 4.3 8.3 million. 13.2 5.2 4.5 +14% +36% The BRIC markets (Brazil, Russia, +17% 2012 2015 2018 -14% India and China) as well as the US 2012 2015 2018 Eastern Europe offer significant further growth North 2012 2015 2018 (incl. Russia) 2012 2015 2018 potential. America Western Japan Europe2 To meet regional customer demand 5.9 29.1 102.6 and purchasing power and to minimize 7.8 3.3 currency risk a clear focus on local 5.8 79.7 production is necessary. +77% 18.8 That‘s why we are investing in our +33% 2012 2015 2018 +55% existing capacity and the continued +29% India expansion of our production network, 2012 2015 2018 2012 2015 2018 such as in China, Russia and Mexico. South China America1 (incl. HK) 2012 2015 2018 1 Includes Central America and Caribbean. 2 Includes Cyprus and Malta. World Source: IHS Global Insight (data status: February 2013), rounded. Note: Market = Cars and LCVs.

The operating profit after tax of the Automotive OPERATING PROFIT AFTER TAX AND RoI DEVELOPMENT Division, including the share of the Chinese joint OF THE AUTOMOTIVE DIVISION (€ million) ventures, was €10.9 billion in 2012 (€9.4 billion). Operating profit after tax The significant year-on-year increase was due in RoI 17.7% particular to higher volumes, optimized product costs 16.6% and positive exchange rate effects, as well as the inclusion of MAN and Porsche. 13.5%

Invested capital rose to €65.7 billion (€52.9 billion), 10.9% mainly as a result of the inclusion of the new 9.5% companies and higher investments in property, plant, and equipment. Multiplied by the cost of capital, which 10,911 also increased as against 2011, the cost of invested 3.8% 9,375 capital was up to €5.1 billion (€3.7 billion). 5,859 4,469 The increase in operating profit after tax resulted in a 3,567 clearly positive value contribution of €5.8 billion (€5.7 billion). 1.673 1 The return on investment is the return on invested 2007 2008 2009 2010 2011 2012 capital for a particular period based on the operating Note: Including proportionate inclusion of the Chinese joint ventures (including the respective profit after tax. At 16.6%, this was down on the prior- sales and component companies) and allocation of consolidation adjustments between the Automotive and Financial Services divisions. year figure (17.7%) due the increase in invested 1 Adjusted. The return on investment after tax (RoI) is unchanged as against the previous year. capital. Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 49 Bentley Flying Spur

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Production locations Production locations under construction Volkswagen is represented in 67 each important region with at Europe least one plant. Local production allows us to offer model variations that answer the different needs of our regional customers from China to North America, India 1 and Europe. USA 12 Our flexible engineering China architecture allows this to be 3 4 1 achieved in a cost effective Mexico India Thailand and timely manner. 6 The transfer of the toolkit Brazil principle to production is the 3 next step. Our factory of the 3 future is highly flexible, and it South Africa Argentina can produce a wide range of models and brands on the As of January 16, 2013. same production line.

TECHNICAL CONCEPT Significantly reducing the fuel consumption of our vehicles, producing them at globally competitive costs and simultaneously increasing profitability and productivity – these are the Volkswagen Group’s goals for its modular toolkits. They represent the further development of our platform and 1 modular strategy, which has its origins in the mid-1990s. Independent from size and segment, several parts, such as engines, gearboxes or air conditioning, can be used for different vehicles. This ensures that the synergy effects that exist, both between models in one series and across all series and brands, Modularisation enables standardization with visible customization can be optimized and increased. whilst maintaining the individual brand identity.

1 Porsche AG fully consolidated since August 1, 2012.

MODULAR LONGITUDINAL MATRIX (MLB)

The Modular Longitudinal Matrix is the use of a modular strategy in vehicle platforms in which the drive train is mounted longitudinally to the direction of travel. This modular arrangement of all components enables maximum synergies to be achieved between the vehicle families. This concept is already used at Audi since 2007 to develop vehicles. With the evolutionary step MLB evo, the toolkit will be expanded in the future.

MODULAR TRANSVERSE MATRIX (MQB)

The latest member of our toolkit family is the Modular Transverse Toolkit (MQB). It is the basis for vehicles whose engine is mounted in a transverse arrangement. We introduced the first models based on this toolkit in the shape of the new Audi A3, the new Golf and the new SEAT Leon in 2012. With the MQB, the Volkswagen Group’s modular toolkit strategy now extends from the A0 segment to the C segment. The vehicles in the New Small Family are also covered in the A00 segment. We intend to produce over 40 models based on the MQB in the long term and across brands – to the highest quality standards, customized to each brand and tailored to the different market requirements.

The MQB architecture standardizes a number of key components across a number of vehicles classes. Each model retains it‘s own unique look and feel through the development of the so-called Hat. The MQB platform itself counts for 60 percent of the vehicle costs and bears the possibility first to significantly cut the necessary one-time expenses, such as development costs and to reduce manufacturing times, and, second, to enable use over several vehicle generations.

Material costs 100 % Distribution of savings

Hat Additional serial and ca. optional content, Margin previously reserved to 40% premium class improvement

Potential savings Savings to be partly MQB absorbed to fulfill Lower cost per unit regulatory and legal platform requirements: ca. 60% Less EHpV1 EURO 6 Less one-off expenditures Pedestrian protection

Savings Profit Expenditures Invest 1 Engineered Hours per Vehicle.

In addition to conventional petrol and diesel engines, the MQB also permits alternative drivetrains to be integrated, for example gas, hybrid, or electric drives. Previously, vehicle-specific adaptions were necessary in each case. Now, the MQB basic architecture is pre-configured to accommodate the changes required, be it for battery packs or high pressure gas tanks within the existing structure. Therefore, a quick reaction to changing needs is possible avoiding major product investment and minimizing complexity.

Conventional drive Alternative/Regenerative

TSI Gasoline EcoFuel EA211 CNG Electric drive

TDI Diesel Plug- E- FlexFuel EA288 in Drive Ethanol

NSF MQB MLB MSB

The responsibilities for the different modular toolkits and for the New Small Family are with Volkswagen, Audi and Porsche. Audi started with the launch of the Modular longitudinal toolkit and keeps the responsibility. The know-how which they have gained over the years, helped and helps to develop the following toolkits. The Volkswagen brand is responsible for the Modular transverse toolkit which will be used for the Volkswagen, Audi, SEAT and ŠKODA brands. The first vehicles to be produced based on the MQB will be the successor to the Audi A3 and the next generation Golf. Development of the Modular standard drive train toolkit is being handled by Porsche, which was made responsible for development of sports car and luxury sedan platforms. The MSB is for a conventional front-engine, rear-wheel drive layout, hence the word “standard” in its title, and it will be used for a range of models including the next-generation Porsche Panamera and Bentley Continental lineup. In addition, the New Small Family complements the toolkit strategy. The up! and its derivatives are not produced based on the MQB. However, individual components such as engine, gearbox and steering components can be used for vehicles based on MQB. 1 Porsche AG fully consolidated as from August 1, 2012. Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 57 Bentley Mulsanne

Lamborghini Aventador Roadster

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Shaping the future is a fascinating challenge for industry and society. Volkswagen’s automotive future is formed by social conditions and trends. It is the Group’s task to anticipate the future needs of our customers and to convert these needs into innovative technologies. The technological challenges of the future can only be mastered by intensive research and networked co-operation both inside and outside the company. Our mission is to continue meeting our customers’ wishes for individual and affordable mobility through sustainable technologies. We work together with our partners to achieve this goal. Research and development activities in the Group again concentrated on two areas in 2012: expanding the product portfolio and improving the functionality, quality, safety and environmental compatibility of Group products.

Example: From Beetle to XL1 - R&D achieved significant reduction in fuel consumption

1972 BEETLE 1303 Consumed 13l/100km

2012XL1 Consumes just 0.9l/100km

Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 60 Volkswagen Continues to Invest in its Global R&D Activities The large number and technical quality of the ideas submitted in 2012 demonstrate once again that our employees are an R&D EMPLOYEES VOLKSWAGEN GROUP enormous source of innovation. In the reporting period, they (‘000 employees) 42.1 applied for 4,313 patents – 2,128 in Germany and 2,185 abroad. 34.7 25.6 27.4 The main focus of these innovations was on the areas of 21.7 22.8 infotainment, driver assistance systems, electric drive technology and lightweight steel design.

VOLKSWAGEN GROUP R&D FOOTPRINT 2007 2008 2009 2010 2011 2012 Škoda R&D EXPENSES VOLKSWAGEN GROUP SCANIA Volkswagen Nutzfahrzeuge Volkswagen % of automotive sales (€ billion) 8.9 VWGoA Bentley VW Group RUS Chattanooga 6.9 7.2 operations Bugatti FAW-VW Audi 5.3 5.4 Porsche 5.1 ERL VTB SEAT MAN VTT 6.1 Italdesign 5.8 5.1 5.1 5.4 5.0 Lamborghini Shanghai VW VW India 2007 2008 2009 2010 2011 2012 VW de Mexico of which capatilized development cost (€ billion) VW do Brasil Capitalization ratio in % VW of Volkswagen SCANIA LAM South Africa 2.6 Argentina 2.2 1.9 1.4 1.7 1.7 27 28 37 23 29 34 2007 2008 2009 2010 2011 2012

Parking in tight spaces is made considerably easier with the Park The cruise control system with Assist. The latest generation detects automatic distance control ACC uses parallel and perpendicular parking a distance sensor to measure the spaces and automatically steers in distance and speed relative to vehicles several moves into small parallel driving ahead. parking spaces – and out again.

The Fatigue Detection system detects The multi-collision brake automatically waning driver concentration and warns brakes after the first impact in order to the driver with an acoustic signal lasting mitigate and avoid further collisions. It five seconds; a visual message also reduces the remaining kinetic energy by appears in the instrument cluster reducing the speed of the car to 10 recommending that the driver takes a kilometers per hour and thereby break from driving. increases safety significantly.

The Proactive Occupant Protection The Lane Assist helps to prevent System detects critical situations with accidents caused by unintentionally elevated accident potential. The vehicle wandering out of lane, and represents a occupants and the vehicle are prepared major safety gain on motorways and for a possible accident: The front seat major trunk roads. If there is an belts in use are tensioned to securely indication that the vehicle is about to hold both the driver and the passenger. leave the lane unintentionally, Lane Open windows and the sunroof are Assist alerts the driver visually and by closed to just a crack. means of a signal on the steering wheel.

Integrating a wide range of innovations into fuel-efficient, low emission mobility solutions, Volkswagen’s “green labels” offer technologies and products that are geared to significantly reduced fuel consumption and CO2 emissions. Volkswagen is committing to reducing the CO2 output of the European new car fleet to 95 grams per kilometer by 2020. We again recorded impressive results in reducing emission levels last year: we reduced the average CO2 emissions over the past five years by 25 grams of CO2 per kilometer to 134 grams of CO2 per kilometer.

EFFICIENT TECHNOLOGIES FOR SUSTAINABLE NUMBER OF MODEL DERIVATIVES FULFILLING LOW CO2 MOBILITY EMISSIONS

324

207

≤ 100g CO2/km ≤ 120g CO2/km ≤ 130g CO2/km

Volkswagen is electrifying drivetrains step by step and is on the way to launch the first series e-vehicle for everyone, the e-up!. Volkswagen‘s aim is not to be the fastest, but the best and safest for our customers.

Internal Mild Hybrid Full Hybrid Plug-In Range Electric Fuel Cell combustion Hybrid Extender vehicle engine (ICE)

1.2 l 77 kW TSI Start-Stop system Touareg Hybrid Golf twinDRIVE Range Extender e-up! Tiguan Recuperation Electrical Vehicle Hymotion

Gasoline or Combination of Full Hybrids, in The Batteries of Small internal In the next decades, today’s technologies Diesel Engine ICE and electric contrast to mild Plug-In Hybrids combustion will continue to be dominant. Combustion motor. The hybrids, can can be charged by engine which engines – some of them supported by E- electric motor drive short plugging into an recharges the motors, pure E-drives and fuel cells – will serves to boost distances in full electric socket. vehicle’s battery co-exist side-by-side. On its path towards power during electric mode. Due to the greater and thereby the future, Volkswagen will continue to acceleration. battery capacity, increases its research and further develop all potential Pure electric longer electric range. engine types and introduce them as soon driving is not driving ranges are as it makes sense and is technically possible. possible. feasible. 2 km 20-80 km 50-120 km 80-200 km 400-600 km Electric Motor Both Internal Combustion Engine + Electric Generator

The use of efficient, sustainable drivetrains is a highly important strategic issue for Volkswagen. The Group is not only working to continuously optimize its existing drivetrains but is also – as in the past – pursuing a variety of alternative drive concepts, and especially electric traction.

e-up!

Caddy blue-e- Panamera Hybrid motion Touareg Hybrid

Bik.e e-Golf

Passat BlueMotion Cayenne Hybrid E-Scooter

XL1 Kickstep

Q5 Hybrid Urban Concept

Golf twinDRIVE Nils

VW Jetta VW Passat

VW Touareg Audi Q5 VW XL1

Audi A6 Audi A4 With these models –

offered worldwide – Porsche1 Cayenne S Porsche1 Panamera S Porsche1 918 Spyder Volkswagen will build a solid bridge Hybrid Audi A8 Audi Q7 to the era of electric mobility.

2010 2011 2012 2013 In parallel with the VW e-up! introduction of new hybrid models, Volkswagen is working on its VW e-Golf electric vehicle offensive.

VW Caddy blue-e-motion E-vehicles

1 Porsche AG fully consolidated as from August 1, 2012.

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Volkswagen at a Our Brands & Our MarketsFinancials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 68 Forming an Integrated Commercial Vehicles Group MAN, Scania und Volkswagen Commercial Vehicles will leverage synergies and jointly harness the substantial worldwide growth potential in this Automotive Division Financial Services segment. Division To strengthen and simplify cooperation in the Commercial Vehicles business Volkswagen seeks Business Area Business Area to conclude a domination and profit and loss transfer Passenger Cars and Light Trucks and Buses, Commercial Vehicles Power Engineering agreement with MAN SE. The target is to achieve €200 million per annum in synergies between MAN, Scania and Volkswagen. Business unit of Voting rights: 75.03%1 Voting rights: 89.2%2 We anticipate higher synergy potential in the Volkswagen AG Capital: 73.72%1 Capital: 62.6%2 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. Leif Östling in charge of Group Board of Management “Commercial Vehicles” function since 1 September, 2012.

1 As per 31 December 2012. 2 As per 31 December 2012; The stake in Scania held by MAN is attributable to Volkswagen.

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SHARE PRICE DEVELOPMENT 2012 The performance of ordinary and preferred shares was unequivocally positive in fiscal 200 2012. However, for Volkswagen AG 175 shareholders the year was also marked by 150 pronounced volatility on the stock markets

125 precipitated by the European debt crisis. VolkswagenVolkswagen Ordinary Stammaktie Shares

VolkswagenVolkswagen Preferred VorzugsaktShares ie 100 DAXDAX On the whole, Volkswagen AG’s ordinary 75 DJD Euro J Eu r o STOXX Au Automobile t o m o b i l e and preferred shares performed very DJFMAMJ JASOND positively during the year in spite of volatile market trends. The securities not only DIVIDEND DEVELOPMENT increased in value year-on-year, but also Dividend development 2012 2011 2010 2009 outperformed the overall market and the Number of no-par value sector. shares at Dec. 31 Ordinary shares ´000 295,090 295,090 295,046 295,005 Preferred shares ´000 170,143 170,143 170,143 105,238 Dividend In the interests of all stakeholders, we are per ordinary share € 3.501 3.00 2.20 1.60 pursuing continuous dividend growth so that per preferred share € 3.561 3.06 2.26 1.66 Total dividend paid our shareholders can participate Ordinary share € million 1,0331 885 649 472 appropriately in our business success. The 1 Preferred share € million 606 521 385 282 Group is aiming to achieve a distribution 1 Proposed. ratio of 30% in the medium term.

In 1961, Volkswagen first issued ordinary shares KEY FACTS & FIGURES (as of December 31, 2012) on the Frankfurt stock exchange with a nominal Securities Ordinary Share: Preferred share: value of DM100 issued at a price of 350 percent. Identification ISIN: DE0007664005 ISIN: DE0007664039 Two stock splits were performed in the course of Codes WKN: 766400 WKN: 766403 Bloomberg: VOW GY Bloomberg: VOW3 GY time. Presently, the majority of the ordinary shares Reuters: VOWG.DE Reuters: VOWG_p.DE are held by the Group’s three biggest Exchanges Berlin, Düsseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, shareholders guaranteeing a stabile shareholder Xetra, London, Luxembourg, New York, SIX Swiss Exchange structure. In 1986, Volkswagen introduced its Major market DAX, CDAX, Prime All Share, Prime Automobile, Dow Jones Euro preferred shares as an alternative investment indices STOXX, Dow Jones Euro STOXX Automobile & Parts, FTSE Eurotop 100 Index, S&P Global 100 Index, Dow Jones Sustainability Index vehicle. In December 2009 the ordinary shares World, FTSE4Good, Advanced Sustainability Performance Index, were replaced through the preferred shares in the Dow Jones Euro STOXX 50, MSCI Euro, Classic All Share, German DAX stock index. Preferred Unlike ordinary shares, preferred shares do not carry voting rights. Volkswagen is globally represented with a market shares1 Dividends are paid to stockholders in proportion to their share of the capitalization of around €77.3 billion as of capital stock eligible for dividend in such a manner that the preferred December 31, 2012. The shares are listed on shares shall be eligible for a dividend which is higher than that for the ordinary shares by 6 Cents per preferred share. different exchanges worldwide, among others in Frankfurt, London and Zurich. In the U.S., American An ADR is a U.S. dollar denominated form of equity ownership in a Depositary non-U.S. company. It represents the foreign shares of the company Volkswagen has 2 sponsored ADR programs, Receipt held on deposit by a custodian bank in the company's home country representing the preference and ordinary shares. (ADR) and carries the corporate and economic rights of the foreign shares, subject to the terms specified on the ADR certificate. Both are sponsored by J.P. Morgan and trade in the US on the over-the-counter (OTC) market. 1 Definition excludes specific exemptions. For more details see Articles of Association of Volkswagen AG.

HISTORICAL DEVELOPMENT ORDINARY AND PREFERRED SHARE (€, monthly closing prices) Ordinary Share Preference Share 600 180

500 150

400 1969 1998 120 Stocksplit 1:2 Stocksplit 1:10 300 90

200 60

100 30

0 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 SHAREHOLDER STRUCTURE AND VOTING RIGHTS In Percent of Subscribed Capital (as of Dec. 31, 2012) Voting Rights (as of Dec. 31, 2012) 9.9% Others Porsche Automobil Holding SE 32.2 50.73% Porsche Automobil Foreign institutional investors 24.9 17% Holding SE, Stuttgart Qatar Qatar Holding LLC 16.4 Holding State of Lower Saxony 12.7 Private shareholders/Others 9.3 German institutional investors 3.0 20% 2.37% State of Lower Porsche GmbH, 1.5 Porsche Holding GmbH, Salzburg Saxony, Hanover Salzburg 0 102030405060708090100

April 25, 2013 Volkswagen AG Annual General Meeting 2013 Hanover

April 29, 2013 Volkswagen AG Interim Report January – March 2013 Wolfsburg

July 31, 2013 Volkswagen AG Half-Year Financial Report January – June 2013 Wolfsburg

October 31, 2013 Volkswagen AG Interim Report January – September 2013 Wolfsburg

Volkswagen at a Our Brands & Our Markets Financials & Strategy 2018 Excellence in Focus on R&D Forming an Shareholder Team Glance Products Outlook Production Integrated Group Information 75 MAN TGX

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Christine Ritz Lars Korinth (Wolfsburg office) Group Head of Investor Relations Investor Relations Manager E-Mail: [email protected] E-Mail: [email protected] Telephone: +49 5361 9 49840 Telephone: +49 5361 9 42224

Oliver Larkin (London office) Lennart Schmidt (Wolfsburg office) Senior Investor Relations Manager Investor Relations Officer E-Mail: [email protected] E-Mail: [email protected] Telephone: +44 20 7290 7821 Telephone: +49 5361 9 49015

Alexander Hunger (Wolfsburg office) Clemens Denks (Volkswagen Group of America, Inc.) Senior Investor Relations Officer Investor Relations Liaison Manager E-Mail: [email protected] Investor Relations Liaison Office Telephone: +49 5361 9 47420 (Questions relating to American Depositary Receipts) E-Mail: [email protected] Telephone: +1 703 364 7000111 Andreas Buchta (Wolfsburg office) Thomas Küter (Beijing office) Investor Relations Manager Investor Relations Manager E-Mail: [email protected] E-Mail: [email protected] Telephone: +49 5361 9 47419 Telephone: + 86 10 6531 4715