V OLKSWAGEN AG ANNUAL REPORT 2005 ANNUAL REPORT 2005 REPORT ANNUAL chronik 2005 >>> key figures volkswagen group Volume Data 2005 2004 % Vehicle sales (units) 5,192,576 5,142,759 + 1.0 Production (units) 5,219,478 5,093,181 + 2.5 Employees at Dec. 31 344,902 342,502 + 0.7 Financial Data (IFRSs), € million 2005 20041) % Sales revenue 95,268 88,963 + 7.1 Operating profit before special items 3,143 2,037 + 54.3 Special items 351 395 – 11.1 Operating profit after special items 2,792 1,642 + 70.0 Profit before tax 1,722 1,088 + 58.2 Profit after tax 1,120 697 + 60.7 Cash flows from operating activities 10,810 11,457 – 5.6 Cash flows from investing activities 10,466 15,078 – 30.6 Automotive Division2) Cash flows from operating activities 8,112 8,881 – 8.7 Cash flows from investing activities 5,721 7,046 – 18.8 of which: investments in property, plant and equipment 4,316 5,425 – 20.4 as a percentage of sales revenue 5.0 6.8 capitalized development costs 1,432 1,501 – 4.6 as a percentage of sales revenue 1.7 1.9 Net cash flow 2,391 1,835 + 30.3 Net liquidity at Dec. 31 706 – 1,912 x Return ratios in % 2005 20041) Return on sales before tax 1.8 1.2 Return on investment after tax (Automotive Division) 2.6 1.3 Return on equity before tax (Financial Services Division) 18.9 20.0 1) Restated. 2) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. volkswagen ag Volume Data 2005 2004 % Vehicle sales (units) 2,151,991 1,993,068 + 8.0 Production (units) 956,108 934,969 + 2.3 Employees at Dec. 31 101,028 102,520 – 1.5 Financial Data (HGB), € million 2005 2004 % Sales 50,245 47,707 + 5.3 Net income 741 505 + 46.6 Volkswagen AG dividend proposal 450 of which: ordinary shares 322 preferred shares 128 This version of the Annual Report is a translation from the German original. The German text is authoritative. chronicle 2005 June 29, 2005 ▼ the first solar filling station in lower saxony begins operating in the volkswagen technology center In cooperation with Braunschweig-based solar energy and heat- ing specialists Solvis, April 2 – 10, 2005 a solar filling station ▼ commences operation February 21, 2005 on the grounds of the ▼ auto mobil Volkswagen Technology international Center in Isenbüttel 25 years of ami), leipzig ( near Gifhorn. audi quattro Volkswagen model The Audi Quattro is 25 initiative continues: two years young this year. Volkswagen models A quarter of a century premiere together at the ago, it was unveiled to AMI – the Fox and the the world in Geneva. new Polo. january february march april may june March 3, 2005 ▼ international motor show, geneva The 75th Geneva Motor January 5 – 16, 2005 Show sees the official May 7 – 15, 2005 ▼ public premiere of the ▼ sixth Passat generation. los angeles auto salón inter- show, los angeles nacional del automóvil, Volkswagen Passenger barcelona Cars kicks off the launch of its 2005 SEAT presents the new models by presenting Leon in Barcelona. the new Jetta. May 24, 2005 ▼ January 25, 2005 ▼ 100 million golf and touran volkswagens set for success across europe The 100 millionth car bearing a VW badge United Kingdom: Golf rolls off the assembly GTI wins the “What line in Wolfsburg. Car?” award. The Touran is voted “Best Compact Van” for the second time following 2004. Slovenia: the Golf outstrips the competition to win “Car of the Year 2005”. November 11, 2005 ▼ financial and investment planning lays September 13, 2005 foundation for ▼ improved earnings volkswagen The Board of Manage- financial services ment submits financial ag establishes rein- and investment plans to surance company the Supervisory Board; based on these plans, Volkswagen Financial the Company reiterates Services AG and Allianz October 22 – its previously communi- Versicherungs-AG sign November 6, 2005 ▼ cated pre-tax earnings an agreement with a target of €5.1 billion for view to further extend- tokyo motor the Volkswagen Group ing their longstanding show, tokyo in 2008. and successful collab- oration in the field of In Tokyo, Volkswagen August 26 – automobile insurance. presents the prototype December 9, 2005 September 4, 2005 of the EcoRacer, which ▼ ▼ may well go down in history as one of the publication of the caravan salon, most fuel-efficient 2005/2006 group düsseldorf sports cars of its time. sustainability report Volkswagen Commercial At a press conference, Vehicles presents the the Volkswagen Group world premiere of the presents its first sustain- new Multivan Beach ability report “Moving and California High Generations” to the Roof models. public. july august september october november december July 11, 2005 November 22, 2005 ▼ ▼ first place for volkswagen the new fox in dominates adac crash test „auto trophy 2005“ In the latest crash test September 15 – 25, 2005 The Volkswagen Group conducted by automobile ▼ sweeps the board at association ADAC, the the “Auto Trophy 2005”, Volkswagen Fox secures international with a total of 23 awards first place in its price motor show (iaa), for our Volkswagen segment, demonstrating frankfurt am main Passenger Car, Sˇkoda, convincingly that low- The new Volkswagen Bentley, Bugatti, Audi, cost entry-level vehicles Convertible Coupé Eos SEAT and Lamborghini can also have excellent and the Audi Q7 SUV brands, and our safety features. see their world premiere Commercial Vehicles in Frankfurt. SEAT business line. unveils the prototype July 19, 2005 ▼ of the Altea FR. exports of the new jetta begin September 25, 2005 ▼ The first Volkswagen Jettas destined for the volkswagen welcomes porsche’s European market leave November 25 – intention to acquire the Volkswagen plant December 4, 2005 in Puebla, Mexico. This strategic interest ▼ new model will be sold Porsche AG announces essen motor in over 25 countries that it is seeking to show, essen across Europe. acquire around 20% of the voting capital of Two Group models are Volkswagen AG. A stable unveiled to the world shareholder structure at the Essen Motor is very important for the Show: the CrossPolo – long-term nature of a versatile, offroad-style the automotive business. vehicle – and the Audi S4 Cabriolet. >>> FOR US, DEVELOPING INNOVATIONS MEANS ASKING WHAT MOVES PEOPLE >>> FOR OUR CUSTOMERS, EXPERIENCING INNOVATION MEANS THAT ALL THEIR NEEDS ARE MET DISCOVER MORE ABOUT THE INNOVATIONS OF THE VOLKSWAGEN GROUP >> The Grand Challenge race Course of the race 0 km on October 8, 2005 >> Start Preparing for the start o 1 hr INNOVATIVE TECHNOLOGY FOR AUTOMATED DRIVING >> Driving on autopilot – a vision becomes reality ACC – the automatic distance control function with radar sensor in the new Passat Although it was dismissed as impossible since the invention of the motor car, automated However, this agreeable form of transport eventually gave can drive itself in certain situations. After all, which of us driving will soon be a reality. To a great extent, this builds on the experiences of earlier way to the march of progress. As motor cars gradually has never been stuck in bumper-to-bumper traffic, nerves generations: before the advent of motorized vehicles, people depended on carts pulled replaced their four-legged forerunners on the roads, drivers torn to shreds by constant stopping and starting? However, by horses or oxen, which would ideally offer them an “automated” form of transport. were once again required to “take the reins”. Nonetheless, automated driving also has its charms in less restricted Particularly when the cart was homeward bound, the animals knew which way to go and the benefits of motorized transport are beyond dispute: the driving situations. Just imagine you are on a deserted road the driver could sit back and take more of a supervisory role. ever-improving comfort levels, the greater speed of travel in the middle of the night with the sole aim of getting from and the superior payload flexibility have made people A to B as quickly as possible. Would it not be wonderful mobile in a way that would have been utterly unthinkable to be able to lean back, leave all the functions to the vehicle with horses and oxen. and use the time more productively – or more enjoyably? Nonetheless, automotive development is currently Volkswagen is now a giant step closer to transforming experiencing something of a return to its roots: the key this dream into reality. Having joined forces with Stanford pursuits of driving pleasure, safety and environmental University in California, working in a team coordinated by protection have now been joined by a new goal – a car that the Volkswagen AG Electronic Research Laboratory in the >> The Grand Challenge race Course of the race 0 km on October 8, 2005 >> Start Preparing for the start o 1 hr INNOVATIVE TECHNOLOGY FOR AUTOMATED DRIVING >> Driving on autopilot – a vision becomes reality ACC – the automatic distance control function with radar sensor in the new Passat Although it was dismissed as impossible since the invention of the motor car, automated However, this agreeable form of transport eventually gave can drive itself in certain situations. After all, which of us driving will soon be a reality. To a great extent, this builds on the experiences of earlier way to the march of progress. As motor cars gradually has never been stuck in bumper-to-bumper traffic, nerves generations: before the advent of motorized vehicles, people depended on carts pulled replaced their four-legged forerunners on the roads, drivers torn to shreds by constant stopping and starting? However, by horses or oxen, which would ideally offer them an “automated” form of transport. were once again required to “take the reins”.