9th Swiss Bond Congress, 19th September 2018

L E B E N S L A U F

Alexander Hunger geboren 1964 in Mannheim, Deutschland verheiratet, 1 Kind

Ausbildung Georgetown University, Bachelors of Business Administration 1985 Boston University, MBA 1991

Berufserfahrung 1986 - 1989 Commerzbank Trainee, Credit Analyst 1991 - 1992 Electra Aviation, London Flugzeug Leasing, Contracts Manager 1992 - 1996 Chemical Bank, London Fond Manager 1996 - 2000 Legal & General, London Senior Fond Manager 2000 - heute Volkswagen Aktiengesellschaft Senior Investor Relations Officer

Katja Hauer geboren 1971 in Hamburg, Deutschland 1 Tochter

Ausbildung 1990 - 1993 OTTO Versand GmbH & Co KG, Hamburg, Gross- und Aussenhandelskauffrau 1993 - 1999 Universität Lüneburg, Diplomkauffrau

Berufserfahrung 2000 - 2001 Deutsche Post AG Wettbewerbsanalystin 2001 - 2004 IZET Innovationszentrum Itzehoe Projektleitung 2004 - 2006 Wolfsburg AG Consultant 2006 - 2010 AutoVision GmbH Beteiligungsmanagement, M&A 2010 - heute Volkswagen Financial Services AG Investor Relations Officer

Disclaimer

The following presentations contain forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions, 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. These assumptions relate in particular to the development of the economies of individual countries and markets, the regulatory framework and the development of the automotive industry. Therefore the estimates given involve a degree of risk, and the actual developments may differ from those forecast. The Volkswagen Group currently faces additional risks and uncertainty related to pending claims and investigations of Volkswagen Group members in a number of jurisdictions in connection with findings of irregularities relating to exhaust emissions from diesel engines in certain Volkswagen Group vehicles. The degree to which the Volkswagen Group may be negatively affected by these ongoing claims and investigations remains uncertain.

Consequently, a negative impact relating to ongoing claims or investigations, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) 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 in particular relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.

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

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

This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. Volkswagen AG Alexander Hunger– Group Investor Relations Martin Büdke – Capital Markets & Rating

Volkswagen Financial Services AG Dirk Bauer– Head Debt Capital Markets & Rating Katja Hauer – Investor Relations Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Development World Car Market vs. Volkswagen Group Car Deliveries to Customers1) (Growth y-o-y in deliveries to customers, January to July 2018 vs. 2017) bf

Car Market VW Group Car Market VW Group Car Market VW Group Cars + LCV 15.0% 11.2% 8.4% 0.3% 0.8% 2.9%

North America Western Europe Central & Eastern Europe

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

11.4% 11.4% 7.5% 7.8% 3.0% 3.6%

South America World Asia Pacific

1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN. 4 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Deliveries to Customers by Brands (January to July 2018 vs. 2017) ‘000 units January – July 2017 +7.5% January – July 2018 7,000 6,427 5,976 6,000 Passenger Cars Commercial Vehicles 5,000 +6.5% 4,000 3,625 3,402

3,000

+4.8% 2,000 +12.0% 1,063 1,115 +20.1% +4.7% +4.8% 1,000 672 752 +23.5% +8.4% 285 343 287 301 146 153 62 77 50 55 0 Volkswagen 2) Group1)

1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +7.5% excl. Volkswagen Commercial Vehicles, Scania and MAN. 2) MAN incl. MAN Latin America Trucks and Busses GVW > 5t. 5 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Deliveries to Customers by Markets1) (January to July 2018 vs. 2017) ‘000 units January – July 2017 +7.5% January – July 2018 7,000 6,427 5,976 6,000

5,000

4,000 +7.8% +8.2% 3,000 2,356 2,499 2,177 2,319 2,000 +11.4% +0.4% +13.6% +0.6% 1,000 423 472 544 546 292 332 220 222

Volkswagen Western Central & North America South America Asia Pacific Rest of World Group Europe Eastern Europe 1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +7.5% excl. Volkswagen Commercial Vehicles, Scania and MAN. 6 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Key Financial Figures1) (January to June 2018 vs. 2017)

thousand vehicles / € million 2018 2017 2) +/- (%) Vehicle Sales 3) 5,575 5,270 +5.8 Sales revenue 119,377 115,349 +3.5 Operating profit before Special Items 9,794 8,916 +9.8 % of sales revenue 8.2 7.7 Operating profit 8,160 8,916 -8.5 % of sales revenue 6.8 7.7 Financial result 813 -117 x of which: At-equity result 3) 1,680 1,635 2.8 of which: Other financial result -867 -1,753 -50.5 Profit before tax 8,972 8,799 +2.0 % Return on sales before tax 7.5 7.6 Profit after tax 6,613 6,474 +2.1

1) All figures shown are rounded, so minor discrepancies may arise from addition of these amounts. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 2) Prior-year figures were adjusted due to IFRS 3) Volume data including the unconsolidated Chinese joint ventures. The joint venture companies in China are accounted for using the equity method and recorded an operating profit (proportionate) of €2,318 million (€2,135 million). 7 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Analysis of Operating Profit1) (January to June 2018 vs. 2017)

€ billion 12

0.3 10 0.2 -0.9 0.0 0.0 1.1 0.2 -1.6 8

6 9.8 8.9 4 8.2

2

0 Jan – June Volume/ Exchange Product Costs Fixed Costs Commercial Power Financial Jan – June Special Items Jan – June 2017 Mix/ Prices Rates Vehicles** Engineering** Services 2018 bef. 2018 incl. Division Spec. Items Spec. Items Passenger Cars*/**

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. *) without FS ** ) including PPA 8 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Automotive Division Net Cash Flow Development1)2) (January to June 2018)

€ billion 11 10 9 8 -4.4 7 (4.3%) 6 5 10.2 -2.5 4 3 0.1 -0.1 2 3.3 3.3 1 0 2017 2.0 - 4.2 (4.2%) -2.9 0.1 -4.8 -0.0 -4.8 Cash flow from Capex 3) Capitalized Other Net cash flow Acquisition Net cash flow operating development before equity and disposal activities costs investments of equity investments

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Including allocation of consolidation adjustments between Automotive and Financial Services divisions. 3) Capital expenditure for property, plant and equipment in % of Automotive sales revenue. 9 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Automotive Division – Net Cash Flow drives solid Net Liquidity1) (January to June 2018)

€ billion 30 2.7 -2.0 25 1.7 4.1 20 -2.6 Automotive Net Cash Flow 15 € 3.3bn 26.3 22.4 10

5

0 31.12.2017 Diesel Outflow Operating Business China Dividend Hybrid bond Dividend pay- 30.06.2018 out to VW AG shareholders

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 10 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Analysis by Business Line1) (January to June 2018 vs. 2017) Vehicle sales Sales revenue Operating profit Margin thousand vehicles/ € million / in percentage 2018 2017 2018 2017 2018 2017 2018 2017 Volkswagen Passenger Cars 1,931 1,812 42,704 39,661 2,130 1,776 5.0 4.5 Audi 812 783 31,183 30,011 2,761 2,680 8.9 8.9 ŠKODA 511 501 9,161 8,720 821 860 9.0 9.9 SEAT 347 304 5,786 5,054 212 130 3.7 2.6 Bentley 5 5 757 867 -80 13 - 1.5 Porsche Automotive 2) 123 124 11,231 10,841 2,064 2,056 18.4 19.0 Volkswagen Commercial Vehicles 248 244 6,324 5,927 567 448 9.0 7.6 Scania 3) 47 44 6,515 6,307 684 673 10.5 10.7 MAN Commercial Vehicles 65 53 5,814 5,297 258 193 4.4 3.6 MAN Power Engineering - - 1,637 1,579 68 73 4.2 4.6 VW China 4) 1,999 1,870 ------Other 5) -512 -469 -18,399 -14,915 -921 -1,152 - - Volkswagen Financial Services - - 16,664 15,999 1,231 1,165 7.4 7.3 Volkswagen Group before Special Items - - - - 9,794 8,916 8.2 7.7 Special Items - - - - -1.635 - - - Volkswagen Group 5,575 5,270 119,377 115,349 8,160 8,916 6.8 7.7 Automotive Division 6) 5,575 5,270 101,715 98,388 6,866 7,651 6.8 7.8 of which: Passenger Cars 5,219 4,930 81,766 79,557 5,649 6,654 6.9 8.4 of which: Commercial Vehicles 357 340 18,312 17,252 1,275 1,043 7.0 6.0 of which: Power Engineering - - 1,637 1,579 -58 -46 -3.5 -2.9 Financial Services Division - - 17,662 16,961 1.294 1,265 7.3 7.5

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts. 2) Porsche (Automotive and Financial Services): sales revenue €12,287 (11,778) million, operating profit €2,154 (2,131) million. 3) Including financial services. 4) The sales revenue and operating profits of the joint venture companies in China are not included in the figures for the Group. These Chinese companies are accounted for using the equity method and recorded a proportionate operating profit of € 2,318 (2,135) million. 5) In operating profit 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 purchase price allocation for Scania, Porsche Holding Salzburg, MAN and Porsche. 6) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 11 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Funding Programs & Outstandings June 30, 2018 in € billion

Money and Capital Markets Utilization Commercial Papers 16.8 Medium Term Notes / Bonds 64.4 thereof: Hybrid Bonds 13.8 ABS 37.3 Borrowings Frame Committed Lines 18.5 3.4 Uncommitted Lines 27.0 10.2 Supranationals, development banks, government, other 20.4 20.4 Direct Banking Deposits ./. 30.5

12 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group Funding Strategy – Overview1)

Diversification of Funding Sources Currencies – Breakdown

CNY AUD SEK 2% Direct Banking 2% 2% other2 Deposits Hybrid Bonds CAD JPY 2% 17% 7% 3% 2% Commercial Paper 9% GBP Bank Loans 11% 19%

USD EUR 13% Medium Term 63% Notes / Bonds ABS 28% 20%

1) as of June 30, 2018 2) BRL, CZK, HKD, INR, MXN, NOK, NZD, RUB, TRY 13 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group Funding Strategy – Major Issuances in 2017 / 2018*

March: EUR 8bn Volkswagen International Finance N.V. April: GBP 850mn Volkswagen Financial Services N.V. May: EUR 3.5bn Volkswagen International Finance N.V. - Hybrid Bond June: EUR 3.5bn Volkswagen Leasing GmbH September: EUR 2.25bn Volkswagen Leasing GmbH December: EUR 3.0bn Volkswagen Bank GmbH March: CAD 1.5bn Volkswagen Credit Canada, Inc. April: EUR 2.25bn Volkswagen Financial Services AG June: EUR 2.00bn Volkswagen Bank GmbH EUR 2.75bn Volkswagen International Finance N.V. - Hybrid Bond August EUR 2.5bn Volkswagen Leasing GmbH

*as per August 31st 2018 14 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group Funding Strategy – Maturity Profile (in € million)1)

12,000 91,000

10,000 78,000

65,000 8,000 52,000 6,000 39,000 4,000 26,000

2,000 13,000

0 0

CP MTN 144A Notes Hybrids (1st Call) Accumulated outstanding debt (incl. hybrid capital) 1) as of June 30, 2018 15 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Main Ratings as of 31 August 2018

Long Term Short Term Long Term Short Term

Volkswagen AG BBB+ A-2 A3 P-2

Volkswagen Financial Services AG BBB+ A-2 A3 P-2

Volkswagen Bank GmbH* A-** A-2 A1** P-1

Outlook Stable (*Negative) Stable

**S&P: BBB+ Senior Subordinated Rating; Moody‘s: A3 Junior Senior Unsecured Rating Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group Funding Strategy – Main Guarantors and Issuers

Volkswagen Volkswagen Volkswagen 2 Volkswagen AGAG FS AG Bank GmbH BBB+ (s) / A3 (s)1 BBB+ (s) / A3 (s)1 A- (n) / A1 (s)1

Volkswagen International Finance Volkswagen Financial Services AG Volkswagen Bank GmbH N.V. Volkswagen Financial Services N.V. Volkswagen Group of America Volkswagen Leasing GmbH Finance, LLC Volkswagen Credit Canada, Inc.

Automotive Division Financial Services Division

1)Credit Ratings from Standard&Poors / Moody‘s as per 31 Aug 2018; (s) Outlook stable; (n) Outlook negative 2)S&P: BBB+ Senior Subordinated Rating; Moody‘s: A3 Junior Senior Unsecured Rating Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group Funding Strategy – Major Commercial Paper Programmes in Europe

Volkswagen Volkswagen Volkswagen AG FS AG Bank GmbH

EUR 15.0bn EUR 5.0bn EUR 2.5bn Multi CCY CP-Programme Multi CCY CP-Programme Multi CCY CP-Programme

Volkswagen International Finance N.V. Volkswagen Financial Services AG Volkswagen Bank GmbH Volkswagen Group of America Finance, LLC Volkswagen Financial Services N.V. Volkswagen Leasing GmbH EUR 5.0bn Belgian Short-Term Treasury Notes Programme

Volkswagen International Belgium NV/SA

Automotive Division Financial Services Division Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Outlook for 2018

+ 4.3% Deliveries to 10,741 Deliveries to customers customers 10,297 (‘000 vehicles) moderately above prior year

+ 6.2% Sales revenue 230.7 Sales revenue (€ billion) 217.3 by as much as 5% year-on-year

1) Operating 7.4 return on sales 1) 6.7 Operating return on sales (%) between 6.5% to 7.5% before Special Items 2) 2016 2017 Full Year

1) before Special Items. 2) Operating return on sales after Special Items is expected to be moderately below that range. 19 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Global Passenger Car Market 2017/2018/2020 Slowdown in Western Europe due to falling demand in UK; Stagnation in USA at a high level; Recovery in Brazil and Russia from a low level; China remains largest driver of passenger car demand million units USA1) Western Europe Russia

-1.7% -0.7% +1.1% -1.0% 17.3 17.0 16.8 14.3 14.5 14.2 +16.5% +11.3% 1.5 1.7 2.1

2017 2018 2020 2017 2018 2020 2017 2018 2020

Brazil1) World1) China +3.0% +2.4% 91.3 +5.2% +4.4% 84.5 87.1 24.0 25.3 27.5 12.8% 9.2% 2.2 2.5 2.9

2017 2018 2020 2017 2018 2020 2017 2018 2020

Actuals Forecast Data source: IHS Automotive (06.2018) 1) Volume for North & South America includes light commercial vehicles (definition ‘Light Vehicles’) growth 2018-2020 = Compound Annual Growth Rate / yearly average 20 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Upcoming Premium and Luxury models enhancing our portfolio offer

Q1 Q2 Q3 Q4

A7 Sportback Urus Q8 Q3

Huracán Performante 911 Carrera T A6 Avant Q2 LWB (China) Spyder

Aventador S Roadster Continental GT Bentayga Hybrid A1 Sportback

RS 4 Avant 911 GT3 RS Macan Facelift

Source: Internal planning. 21 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Strong product momentum continues in Volume segments

Q1 Q2 Q3 Q4

up! GTI Touareg Fabia Cupra Ateca

Polo GTI Jetta (US) Bora (China) Compact SUVs (China)

Lavida (China) T-Roc LWB (China) Kamiq (China) Virtus (SAM)

Karoq LWB (China) Kodiaq (Russia) e-Crafter

Source: Internal planning. 22 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Strong Increase in our SUV mix SUV mix by region based on expected regional Group sales

~50% NAR 50% China ≥40% Europe 30% ~34% 20%

18% SUVsegment share 10%

2016 2017 2018 2019 2020 2021 2022

Source: Internal planning. 23 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence WLTP – Worldwide Harmonized Light Vehicles Test Procedure

SCOPE IMPACT

• In EU-28 States + 6 countries (Norway, Switzerland, Iceland, Turkey, • CO2 / exhaust emissions and fuel consumption figures are calculated Israel and Liechtenstein) 1) under more realistic conditions

• Legally binding registration requirements for all OEM´s • CO2-values vehicle-specific and therefore very precise • Effects taxation: • Should close tolerances regarding different test conditions • EU recommendation crossover from Jan. 1, 2019

Effective for new passenger Effective for all passenger vehicle models & engines / vehicle models, car gearbox variants (01.09.17) registrations (01.09.18)

2017 2018 2019 2020 2021

NEDC 2) WLTP

Light Commercial Light Commercial Vehicles Vehicles new models all new registrations (01.09.18) (01.09.19) 1) Different implementation of timelines between countries 2) NEDC: New European Driving Cycle 24 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Clear Financial Targets and Milestones1) Key financial targets 2016 2017 2018 2020 2025 Actual Actual Outlook Targets Targets

Operating return on sales 6.7% 7.4% 6.5-7.5% 6.5-7.5% 7-8% Before Special Items

Return on investment 13.9% 14.4% 12-14% 13-15% > 15% Automotive Division before Special Items

Capex ratio 6.9% 6.4% 6.5-7% 6% 6% Automotive Division

R&D cost ratio 7.3% 6.7% 6.5-7% 6% 6% Automotive Divison

Cash a) Net Cashflow2) € 7.2 bn € 10.1bn ≥ € 9 bn ≥ € 10 bn > € 10 bn Automotive Division ~10% of Group b) Net Liquidity € 27.2 bn € 22.4 bn > € 20 bn > € 20 bn turnover

1) As of 1st August, 2018. 2) Ex diesel payments; cash outflows of around € 3 bn in 2016, € 16.1 bn in 2017 and € 2.6 bn in H1 2018. 25 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Improving Group results despite significant challenges1)

Industry transition › e-mobility 6.5 - 7.5% 7.4% › Digitalization 6.7% › Autonomous Driving › Mix Trend (+SUV‘s/-diesel)

Emission costs1)

› EU -27% CO2 emission › US -35% CO2 emission › CN -40% l/km consumption Return on Sales

2016 2017 2020 Base Target 1) Calculation based on 2016 figures. 26 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence CAPEX Automotive Division (€ billion, as % of sales revenue)

6.9% 6.9% 6.4% 6.5-7%

5.9% 6% 6% 12.7 12.8 12.6 11.5 11 10.3

2012 2013 2014 2015 2016 2017 2018 2020 2025 Target 27 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence R&D Costs Automotive Divison (€ billion, as % of sales revenue)

7.4%

7.3% 6.5-7% 6.7% 13.6 13.7 6% 6% 13.1 13.1 5.5% 11.7

9.5

2012 2013 2014 2015 2016 2017 2018 2020 2025 Target 28 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Automotive Division-Net Cash Flow (ex Diesel payments)1) in € billion ≥ 10 > 10 10.1 8.9

7.3 Cash Flow

6.1 Net - Stretch Division Automotive Automotive 2014 2015 20162) 2017 2) 2018 2020 2025

1) Incl. allocation of consolidation adjustments between Automotive and Financial Services divisions. 2) Before around € 3 bn in 2016 and € 16.1 bn in 2017 Diesel related outflow. 29 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen AG – Attractive Dividend for Preferred Shares; almost doubled1)

Earnings per Share Dividend per Share Dividend pay-out (€) (€) ratio1) (%)

22.69 3.96 19.70 19.002)

10.30 2.06

2016 2017 2016 2017 2016 2017

Target EPS 2020 Within current planning round / next 5 years over € 25 30% Dividend pay-out ratio1)

1) Total dividend in percent of net income attributable to shareholders of Volkswagen AG. 2) Business year 2017 adjusted for non-recurring effects related to the tax reform in the USA of € 1 bn. 30 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence STRATEGY 2025 – Initiatives at a glance

Better integrated and 16 strategic planning process

31 38 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence The Volkswagen Group is speeding up its transformation with the organizational realignment

Distributed Group Functions Brand Groups Subsidiarity

Group steering Strong brands Independence Lean and effective Group steering by trans- Use and develop core competences Maximum subsidiarity for responsibility at ferring responsibilities to Group BoM members of each individual brand all levels

Focusing Synergies Decision-making Group BoM focuses on strategic challenges Closer cooperation between brands Efficient decision-making through swifter by bundling in brand groups processing in committees, etc. and use of fewer resources

„All for one and one for all“ High maturity level Stability Shared goals More intensive exchange, synchronization Strategy process with clear targets, content and harmonization on strategy issues and workflows

24 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Creation of Brand Groups will reduce the complexity of the Group structure

Procurement/ Volume Premium Sport & Luxury Truck & Bus Finance & IT China Components

VW Audi Porsche MAN Procurement Region China

Škoda Lamborghini* Bentley Scania Components**

Power SEAT Ducati* Bugatti Engineering*

VW LCV

MOIA

* Allocation will be verified ** Temporarily responsibility of Group CEO, will be a combined Board of Management function

25 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Focus on strategy: Resolutely making progress toward sustainable mobility

Sustainable Mobility Sustainable mobility

Efficient Battery Charging Mobility Self-driving combustion technology infrastructure services system (SDS) engines and alternative drives

E-mobility

34 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Paving the way for sustainable mobility

Up to the end of 2022: We will be putting more than €34 bn into e-mobility, digitalization, autonomous driving and mobility services – thereof in 2018: €6.6 bn

Up to the end of 2022: Volkswagen Group and its joint-venture partners in China will be making around €15 bn available for e-mobility, autonomous driving, digitalization and new mobility services.

Also putting more than €90 bn into the conventional vehicle and drive portfolio – thereof in 2018: €19.8 bn

35 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Efficient combustion engines and alternative powertrains play a major role for the future of sustainable mobility

• Significant improvements in consumption and emissions of • The latest Euro 6 diesel engines gasoline engines deliver above-average performance in the new WLTP1) cycle

• All new gasoline engines will be • Significantly expanding the equipped with a particulate filter range of CNG2) vehicles

• Working on synthetic fuels produced from renewable sources

1) Worldwide Harmonized Light-Duty Vehicles Test Procedure . 2) Compressed Natural Gas 36 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Responsibilities for Electric Toolkit Architecture

• Common modules and scale effects save up to 30% development costs PPE (compared to brand excl. Premium Platform developments) Electric • Flexibility: Architecture open for other brands to be used in the future

• Economies of scale from use of MEB across entire Group MEB Modular • Higher productivity and shorter Electrification Kit manufacturing time • Lower material and distribution costs

37 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Audi e-tron and Porsche Taycan will change the premium electric game

~ €500 m for the development of Taycan variants and derivatives

Market launch in September 2018. Market launch in the second half of next year. 38 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence The Volkswagen Brand‘s I.D. family sets the new BEV benchmark in the volume segment

Market launch early 2020 and onwards. 39 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Advances in battery technology will improve range, weight and costs

range* 700 km 1000 Wh/l

all solid state

500 km * basis: eGolf with comparable battery volume 800 Wh/l improved anode and cathode 420 km 700 Wh/l 380 km 650 Wh/l 300 km 410 Wh/l 190 km 230 Wh/l New battery Lithium ion technology technologies

2014 2017 2018 2020 2025

Energy density, or volumetric energy density, reflects volume in liters (Wh/l). 40 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Battery costs will decrease significantly by 2020

€ / kWh

300

MQB 200 MEB Target: < 100€ / kWh 100 battery system

battery cell

2013 2020

41 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Roadmap E - E-mobility model offensive of the Volkswagen Group • 50 BEVs + 30 PHEVs • 2-3m expected units or 20–25% Group sales intended to be purely battery- powered • Own e-fleet requirements over 150 GWh of battery capacity • MEB: € 50 bn battery cell procurement volume up to 2025, of which € 40 bn has already been awarded to suppliers

2025 2030

• At least one electrified version for each of the Group's 300 or so models

42 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Launch of Pan-European High-Power Charging Network IONITY1)

• Joint Venture of automotive manufacturers enables electric mobility on long-distance journeys • Building of a High-Power-Charging (HPC) Network for electric vehicles starts operation • 20 stations in multiple European countries started in 2017 • IONITY will implement and operate about 400 fast charging stations across European major thoroughfares until 2020 • A charging capacity of up to 350 kW enables to reduce charging time significantly when compared to existing systems • Multi-brand compatibility with current and future generations of electric vehicles through Combined Charging System (CCS)

1) The founding partners, BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group, have equal shares in the joint venture, while other automotive manufacturers are invited to help expand the network. 43 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Electrify America - Powering electric mobility

Open network for all Highway sites every 70 miles on average, Investment of $2 billion over (even group external) OEMs but no more than 120 miles 10 years in Zero Emission Vehicle and business partners apart, so shorter range ZEVs (ZEV) infrastructure and available today will education programs in the U.S. be able to use this network

1st cycle: Public access for all ZEV drivers We will establish a will be ensured through multiple network of ~4.700+ non-proprietary technologies (Level 2 and electric vehicle chargers in 17 metros and DC fast charging: CCS Combo on highways in 39 states and Chademo connectors)

Station chargers will be extremely powerful, capable of delivering 150 kW or 350 kW to vehicles

Source: Electrify America 44 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Successful launch of MOIA Shuttle at end of 2017, customers show a high demand for this alternative form of mobility Connected Customized interior to backend with high comfort/ connectivity Prepared for App-based ride pooling service Shadow/ security driver 6 passenger seats mode with high privacy

MOIA Electric door branded concept

Unique recognizable BEV with design > 300 km real range

<6 m < 3,5 t

. Test phase in Hanover with 2,000 users under way . Project start in Hamburg at end-2018: fleet will be expanded to 200 vehicles in the first phase . Further cities planned 37 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Intensified efforts to develop autonomous vehicles Autonomous Audi TTS SEDRIC is Volkswagen Strategic partnership Urban Shuttle/Carrier/Pod “Shelley” climbs Pikes Peak Group´s first Level 5 vehicle with Aurora

2005 2017 2021+

2010 2018 “Stanley” Winner Darpa Volkswagen Group MOIA Battery Electric Personal Autonomous Grand Challenge >200 AV related patents Special Purpose Shuttle Vehicles

Foundation AID GmbH

46 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Driving forward Strategy 2025: Implementation is accelerating I

ROADMAP E launched Center of Excellence for Joint venture for rapid SEDRIC developed battery technology established charging network in place and presented

Joint venture with JAC MOIA pilot started and created for e-mobility shuttle presented

New technology partnerships Realignment of Group Positioning of Group brands Board Digitalization agreed Components approved sharpened Committee established

39 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Driving forward Strategy 2025: Implementation is accelerating II

Autonomy for Truck & Bus making good Volkswagen Components becomes Fuel cell technology partnership agreed progress independent entity from January 2019

Components

Product & technology offensive in Strategic cooperation in discussion China agreed

Turnaround in South America initiated INDIA 2.0 project launched Volkswagen becomes largest shareholder

40 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen AG and Ford to explore Strategic Alliance, extend Capabilities, strengthen Competitiveness and better serve Customers

Volkswagen AG and Ford Motor Company announced a Memorandum of Understanding1)

Explore Strategic Extend Capabilities & Strengthen Equity Arrangements Alliance Better Serve Customers Competitiveness not involved

Volkswagen AG and Ford The companies are Potential projects aim to Volkswagen AG and Ford are exploring a strategic investigating several joint strengthen each said any strategic alliance alliance. projects – including joint company’s would not involve equity development of a range competitiveness; the arrangements, including of commercial vehicles to companies will share cross ownership stakes. better serve the evolving updates as talks needs of customers progress. globally.

1) As of June 19th, 2018. 41 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Why our Value Proposition is one of the best in the Industry? 1. Unique and Compelling Brands and Products and Scale Potential

2. Convincing holistic TOGETHER – Strategy 2025 with embedded financial KPI Targets

3. Comprehensive E-Strategy

4. Optimal Toolkit Infrastructure for conventional and alternative power trains

5. We intend to deliver Self-driving at the touch of a button and become Software leaders

6. Upside Potential in Core and Developing Markets

7. Lead Position in China

8. TRATON Global Champion Potential and clear plan to achieve Capital Market Readiness

9. Culture of willingness to change: agile, innovative and integral backed by committed management and employees

10. Priority to work on protecting our Society and Environment for future generations also focusing on Sustainable Supplier Relations Overarching vision is to become a World-leading Provider of Sustainable Mobility 50 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Overview Brand Targets (RoS, RoE)

Return on Sales in %1) 2016 Target 2017 2017 Target 2018 2020 2025

moderately Volkswagen Group 6.7 6-7 exceed 7.4 6.5-7.5 6.5-7.5 7.0-8.0 moderately Volkswagen Brand 1.8 3-5 exceed 4.1 4-5 4-5 ≥6 Audi 8.2 8-10 8.4 8-10 8-10 8-10 Porsche Automotive 17.4 >15 18.5 >15 >15 >15 ŠKODA 8.7 7-8 9.7 8-9 6-7 ≥7 Volkswagen Commercial Vehicles 4.1 3-4 7.2 5-6 4-5 >6 Truck & Bus Business2) • Scania 9.5 6-7 6.9 6-7 93) 93) • MAN Commercial Vehicles 2.3

Return on Equity (norm. 8%) 2016 Target 2017 2017 Target 2018 2020 2025

Volkswagen Financial Services 15.6% 14-16% 15.8% 14-16% 14-16% 20%

1) Before special items. 2) For peer-group analysis: Truck & Bus Business RoS is calculated as the sum of Scania and MAN Commercial Vehicles. 3) Through-cycle Target. 51 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Starting point „TRANSFORM 2025+“ STRATEGY will put the Volkswagen Brand to the top of the automotive industry STRENGTHEN LEAP TO THE TOP OF MAJOR GLOBAL MARKET LEADER CORE BUSINESS ELECTRIC MOBILITY TRANSFORMATION IN AUTOMOBILITY 2% RoS1) ≥ 4% RoS ≥ 6% RoS > 6% RoS

SUV Offensive Electric Offensive New Business Models

Turnaround in the Regions Digital Ecosystem New Mobility solutions

Brand Positioning Operational Excellence Autonomous Driving

Productivity / Costs

New Skills

2015 2020 2025 2030

1) Before special items. 52 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Brand Clear Financial Targets and updated Milestones Forecast 2018 Target 2020 Target 2025

Sales revenue up to +10 % - -

Operating return on sales 4–5 % 4–5 % ≥ 6 %

Capex ratio 4–5 % 4–5 % 4–5 %

R&D ratio ~4 % 4 % 4 %

Positive operating Free cash flow > € 1 bn >> € 1 bn cash flow1)

1) Before special items. 53 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Further roll-out of MQB offers substantial benefits for Volkswagen Brand

bf Other MQB

MQB share in overall production (percent | rounded)

80% 60% 40% 20%

2015 2017 2018 2020

54 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Increase in competitiveness and safeguarding the future are the focus points of the Future Pact agreement Secure the Future Working Group 1 • Increase of productivity by 25% • 4 additional models: Production • Reduction of plant costs 2 conventional and 2 MEB vehicles

Working Group 2 • Increase of productivity by 25% • Investments in: Components • Discontinuation of unprofitable products • Electric drive trains • Pilot facility battery cell • Battery system Working Group 3 • Reduction of hardware-oriented • Competency/capacity increase in autonomous Technical development work driving, electrification, connectivity etc. Development • Increased efficiency in development processes Working Group 4 • Reduction of bureaucracy • Creation of employment Administration in new business segments

Reduction in workforce based on demographic curve1) 1) ~ 9,350 early retirement contracts signed in 2017. 55 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Core challenges in the commercial vehicle industry

Cyclical Strong correlation to GDP in developed world markets Not all regions hit by economic downturns at the same time

Further The megatrend of globalization has a direct influence on future developments in globalization freight transportation and the commercial vehicle industry

Europe with aggressive regulations, focus shifting to e-mobility and alternative Emission fuels regulations Emerging Markets also have ambitious roadmap

Platooning and partly-autonomous driving as transition solutions Connectivity & Data management for customers and traffic of broad interest (e.g. RIO for digital digitalization solutions)

After sales increasingly important as alternative source of revenues After sales and Future business models (e.g. connectivity, clean driving) to actively shape the future business models future of transportation

56 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Shaping the future of the Commercial Vehicles business

Global Champion strategy Project "Next Level"

• Goal is becoming the Global Champion of the Commercial Vehicles sector: Leader in • Further increase the company’s matureness, profitability, global presence and innovation. efficiency and innovativeness. • Further enhancement of brands’ • Achievement of capital market readiness: performance with individual identities, meet technical and structural requirements of strengths and profiles. the capital market; complex scope. • Increase cooperation and leverage synergies • Change of legal structure of Volkswagen between brands. Truck & Bus GmbH to a German stock • Further global expansion to leverage scale corporation (AG) and in a second step into a and be ahead of competition (e.g. Navistar in Societas Europaea (SE). the USA, Sinotruk in China, Hino Motors in • Changed name to TRATON Group. Japan and Asia). • Focus on Commercial Vehicles.1) • Also develop solutions for Commercial • IPO is just one of several options. Vehicles in such areas as autonomous driving, electrification and connectivity. • Dependent on capital market conditions & Volkswagen Group strategy. • RIO covers logistics solutions for all transportations sectors. • [Minority interests legal case closed.]

1) Allocation will be verified as part of creation of new Volkswagen Group structure. 57 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Financial Services1): global, well diversified and successful

Strong global presence Continuous portfolio expansion

in ‘000 contracts 7,641 7,647 7,218 6,322 4,549 Total 3,796 3,281 2,760 3,921 4,082 portfolio 2,691 2,274 2,518 1,964 2,148 2,246 1,983 17,575 1,623 1,808 1,505 1,508 1,524 4,946 5,560 5,833 6,155 5,672 5,846 3,163 3,567 3,712 3,930 4,551

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* H1 Financing Leasing Insurance / Services 2018 *) Reclassification Finance / Lease contracts Rising penetration rates Diversified funding structure

Asset backed securitization 48.7% 47.8% 47.8% w/o China Equity, liabilities to 44.3% 44.5% 46.9% 40.7% affiliated companies, 19% 36.3% other 32% 32.5% 32.9% 34.9% with China 33.1% 33.1% 33.2% 32% 28.9% 30.6% 31.3% Bonds, 26.4% 25.0% 24.7% 25.4% 27.5% 17% Commercial Paper, Customer deposits liabilities to financial institutions 30.06.2018: € 196.5 bn

1) Excl. activities of Scania and Porsche Holding Salzburg; incl. Financial Services of Porsche AG and MAN Financial Services. 58 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Brand – Turnaround in the US with new products from 2017 onwards SUV offensive #1 New Sedans SUV offensive #2 Deliveries to US customers, ‘000’ units 2017 2018-19 2019-21 500

Atlas Jetta Midsize SUV 5s +8.0% 20 250 18 3 8

Tiguan Passat Compact SUV

0 2012 2013 2014 2015 2016 2017 1-7 1-7 Refreshed Golf Arteon ID Crozz 2017 2018 Market Share % 3.0 2.6 2.2 2.0 1.8 2.0

59 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence A product offensive is initiating a new growth phase in South America

Product offensive in South America Key measures

• Restructuring: reduce capacities and fixed costs

• Increase productivity, align products to local Polo G Virtus requirements

• Product offensive, €2.5bn investment

• New brand positioning

• New growth strategy for Latin America Small SUV Global

60 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group China performance (January to July 2018 vs. 2017) January – July 2017 Proportionate operating profit, January to June (in € billion) January – July 2018 ‘000 units +6.5% +8.6% -1.5% 3,000 4,000 3,699 3,643 2,651 2.3 2,489 2.1 3,500 2,500 +3.6% 3,000 1,958 2,000 1,890 H1 2017 H1 2018 2,500 1,500 2,000 +12.2% 1,197 1,500 1,000 1,067 +15.8% 1,000 +21.1% -41.6% 500 360 417 -1.6% 220 500 182 178 104 48 48 0 0 1)

1) Incl. Hong Kong, excl. Ducati. Group numbers incl. Volkswagen Commercial Vehicles, Scania and MAN. 61 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Regulatory environment for NEV and Fuel Consumption Credits in China

CAFC1) and NEV Credit System MIIT2) for NEV Credit Calculation

- Independent calculation of CAFC1) and NEV min. NEV NEV credit ICE3) Volume credits credit points = x point ratio - Companies need to fulfill both requirements 2018 2019 2020 CAFC1) Credits: - Transfer between affiliated companies only None 10% 12% - Credit carry-over to next 3 years with Example 2019: depreciation ICEs 1 million ICEs need - Negative results can be offset by NEV credits min. NEV credit 100,000 NEV credit points (own or free trading in market) NEV Credits: NEV Credit Point Attribution per NEV Type 1) - No transfer from CAFC credits to NEV credits BEV4): Basic credit = 0.012 x Range + 0.8 (max. 5 basic credits) - No Carry-over except for year 2016 and 2019 BEV additional factor for low electric consumption up to 1.2 - Free Trading of NEV credits allowed PHEV5): Basic credit = 2 (min. e-Range 50km) PHEV credit = 1 if e-range 50-80km and consumption under B-Test ≥70% ICE; or e-range ≥ 80km but high electric consumption 1) CAFC – Corporate Average Fuel Consumption 2) MIIT – Ministry of Industry and Information Technology 3) ICE – Internal Combustion Engine 4) BEV – Battery Electric Vehicle 5) PHEV – Plug-in Hybrid Electric Vehicle 62 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group China will be prepared to deliver around 1.5 million zero emission cars to Chinese customers by 2025

Introduction of locally produced NEV Mass market BEV cooperation

Phase 1

Plug-in hybrids based on current toolkits + +

Phase 2 Pure electric vehicles based on current toolkits + + Phase 3 (start 2020/21)

Pure electric vehicles based on + scalable electric toolkit

63 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence New product offering with an expanded SUV line-up1)

China deliveries by bodystyle (in ‘000 units) SUV offensive of Volkswagen Group China Volkswagen Group 4 Volkswagen brand SUVs in 4,184 2018 3 of which are new models 3,982 ≥40% 18% Others 45% Touareg 14% +32% 18%1% T-Roc LWB SUV 14% MPV 6 additional Audi SUVs in the Hatchback 4% next 2-3 years 7% Sedan 66% Q2L

43% 3 new ŠKODA SUVs in 2018 Karoq 2016 2017 Target 2020 Kamiq

1) Source: IHS. 2) Schematic overview – does not show all models. 64 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group China opens new factories to strengthen SUV offensive and e-Mobility Production capacity will increase Factories starting in 2018

Tianjin Start in August

New vehicle plants Urumqi Changchun Qingdao Opening ceremony on May 28 Tianjin Vehicle plants expansions Dalian New Bora & 2 Audi models on MQB platform New component plants Qingdao Chengdu Nanjing ICE & EV production on one production line Component plant expansion Hefei Yizheng Shanghai Existing plants Changsha Changzhou Production of battery systems Foshan Ningbo Hefei First production model unveiled May 25 4,042 = >110% Production of JAC Volkswagen’s SOL brand 332 Foshan Start in June ŠKODA 3,157 Volkswagen Focus on the SUVs (Audi and Volkswagen) Audi Additional factory at the production site 553 MQB platform will be electrified Production 1) Capacity2) Capacity 2017 2017 2020 Battery system assembly and MEB to follow

1) Actual production volume in ’000 vehicles 2) Available capacity on the basis of 250 working days. 65 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Special Items: Diesel related and other

Diesel Other Total € (bn)

Restructuring: Legal 7.0 Truck Business 0.2 Other items 9.2 2015 Passenger Cars South America 0.2 Airbags Takata 0.3

16.2 0.7 16.9

Scania Anti-Trust Proceedings 0.4

2016 Others 0.7

Mainly legal risks 6.4 1.1 7.5

Buyback/retrofit program 2.2 2017 Legal 1.0 3.2 3.2

2018 Legal 1.6 1.6

Total to date 27.4 1.8 29.2

A significant amount of the Diesel Dollar-related provisions are hedged and a further substantial amount of the provisions have been utilized. Cash outflows of around € 3 bn in 2016, € 16.1 bn in 2017 and € 2.6 bn in H1 2018. 66 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Resolving the diesel crisis: Substantial progress in all markets

Worldwide recall/service campaigns driven forward: Major progress in modifications in North America: Software Flashes in Germany currently 96% complete; Around 90 percent of the 2.0l and 3.0l TDI vehicles affected in the U.S. Substantial progress also in Europe (77%) and have already been retrofitted, bought back, or otherwise remediated (as of June 2018) worldwide (71%) We have reached the targets set by EPA and Carb for the 2.0L settlement and are on track to achieve the targets in the 3.0L settlement within the specified timeframe. Group environmental incentive made significant Electrify America underway: contribution to improving air quality in German cities: Investment plan for zero emissions vehicles (ZEV) approved More than 240,000 customers decided to switch to by authorities and implementation has already started environmentally friendly vehicles (terminated by 30.06.2018)

Timeframe of legal proceedings expected to be long !

Status: July 2018 67 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence With “Together4Integrity” we have launched a Group-wide integrity and compliance program

STRATEGY Ethics and compliance is central to business strategy RISK MANAGEMENT CULTURE OF INTEGRITY Ethics and compliance risks Leaders at all levels across the are identified, owned, 1 organization build and sustain managed and mitigated 2 3 a culture of integrity 4 5 SPEAK-UP ENVIRONMENT RESOLUTE ACCOUNTABILITY The organization encourages, The organization takes action protects and values the and holds itself accountable reporting of concerns and when wrongdoing occurs suspected wrongdoing

68 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence We need to foster and live a new culture

Brand Open and collaboration honest instead instead of of backdoor Transparent Fair internal rivalry approach communication competition instead of instead of war corral mentality NEW

Multicultural CULTURE More Pikes Peak instead of instead of Le Mans “Mittellandkanal” Decentralized instead of centralistic

69 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Overview of timeline and 1st Monitor Audit-Report

Structure • 50 pages, 14 chapters + 1 Appendix

• two violations are referenced

• seven “recommended actions to achieve compliance” with the Consent Decrees are separately embedded

Further information online available at: https://www.vwcourtsettlement.com/en/2-0-models/. 70 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Upcoming tasks to master challenges and make use of opportunities

Continue to resolve the diesel crisis . Conclude worldwide recall campaigns and service actions . Manage legal proceedings worldwide

Improving the Core Business . Profitability in NAR / SAM / Russia . Drive Future Pact Brand Volkswagen further . Cash Generation and Capex/R&D discipline Transformation towards more E-Mobility

. CO2 Compliance / WLTP implementation . Profitability of Electric Vehicles . Governance / Compliance / Culture

Strengthen Innovation Power . Digitalization & Connectivity . Profitable Mobility Services

71 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Investor Relations Team We are pleased to answer your inquiries regarding Volkswagen shares and other capital market related questions.

Oliver Larkin (Wolfsburg / London office) Helen Beckermann (Wolfsburg office) Andreas Buchta (Wolfsburg office) Head of Group Investor Relations Senior Investor Relations Manager Senior Investor Relations Manager E-Mail: [email protected] E-Mail: [email protected] E-Mail: [email protected] Telephone: +49 5361 9 49840 Telephone: +49 5361 9 49015 Telephone: + 49 5361 9 40765

Lennart Schmidt (China office) Alexander Hunger (Wolfsburg office) Ulrich Hauswaldt (Wolfsburg office) Investor Relations Manager Senior Investor Relations Officer Investor Relations Officer E-Mail: [email protected] E-Mail: [email protected] E-Mail: [email protected] Telephone: + 86 10 6531 4732 Telephone: +49 5361 9 47420 Telephone: +49 5361 9 42224

Andreas Kowalczyk (Wolfsburg office) Monika Kowalski (Wolfsburg office) Investor Relations Officer Investor Relations E-Mail: [email protected] E-Mail: [email protected] Telephone: +49 5361 9 23183 Telephone: +49 5361 9 31106

The official website of Volkswagen Group Investor Relations. Company topics, brandchannels, innovation and informations. 72 Appendix Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence The Shareholder Structure, Supervisory and Management Board Shareholder Structure of Volkswagen AG Supervisory Board of Volkswagen AG Board of Management of Volkswagen AG1)

Number of Outstanding Shares Preferred shares Chairman Hans Dieter Pötsch Chairman of VW AG Dr. Herbert Diess 206,205,445 and VW Passenger Porsche Dr. Louise Kiesling Cars brand Automobil Dr. jur. Hans Michel Piëch Holding SE Dr. jur. Ferdinand Oliver Porsche Porsche AG Dr. Oliver Blume 41,1% Dr. rer. comm. Wolfgang Porsche China Prof. Dr. rer. pol. Dr.-Ing. E. h. 58,9% State of Lower Dr. Bernd Althusmann Jochem Heizmann Saxony Stephan Weil Human Resources Ordinary shares Qatar Holding Dr. Hussain Ali Al Abdulla Gunnar Kilian 295,089,818 Dr. Hessa Sultan Al Jaber TRATON Group and Andreas Renschler Current Voting Rights Distribution Others Marianne Heiß Power Engineering Others Works Council Bernd Osterloh Audi AG (interim) Abraham Schot 10,8% Birgit Dietze Dr. Hans-Peter Fischer Qatar Holding Integrity and Legal Hiltrud Dorothea Werner 17,0% Jörg Hofmann Affairs 52,2% Porsche SE, Uwe Hück Stuttgart Johan Järvklo Finance and IT Frank Witter Ulrike Jakob 20,0% Peter Mosch State of Lower Bertina Murkovic Components and Dr. Stefan Sommer Procurement Saxony, Hanover (as at December 31, 2017) Athanasios Stimoniaris 1) Each Board Member is responsible for one or more functions within the Volkswagen Group. The work of the Board of Management of Volkswagen AG is supported by the boards 66 of the brands and regions as well as by the other group business units and holdings. Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Volkswagen Group – Key Credit Ratings

Current Ratings1) Long Term Short Term Long Term Short Term

Volkswagen AG BBB+ A-2 A3 P-2

Volkswagen Financial Services AG BBB+ A-2 A3 P-2

Volkswagen Bank GmbH* A- A-2 A3 P-1

Outlook2) Outlook2) Stable (*Negative) Stable

1) as of May 16, 2018 2) Outlook change from Negative to Stable: S&P November 6 2017 (excluding VW Bank GmbH); Moody‘s March 19 2018 75 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Automotive Division Net Cash Flow (ex Diesel payments)1) (January to June 2018) € billion

6

2.6 4

5.9

2 3.3

0 Net Cash flow incl Diesel payments Diesel outflow Net Cash flow underlying business

1) Including allocation of consolidation adjustments between Automotive and Financial Services divisions. 76 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence Automotive Division – Research and Development Costs (January to June 2018 vs. 2017)

€ million

2017 2018 8,000 8,000

6,000 6,000 -2,490 -2,919 1,845 43.2% 1,705 36.9% 4,000 4,000 6,759 6,747 5,546 6,102 2,000 2,000

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

77 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence The remuneration system is designed to be completely forward-looking

Old system: backward-looking Since January 2017: forward-looking

Payout Payout after LTI after FY FYn+2 (4 years retrospectively) n Performance Share Plan (3 years forward-looking) Special remuneration (2 years retrospectively) Annual Bonus PLB Fixed Fixed remune- remune- ration ration

FYn-3 FYn-2 FYn-1 FYn FYn+1 FYn+2 FYn-3 FYn-2 FYn-1 FYn FYn+1 FYn+2

78 Outlook & Operative Deliveries Key Financials & Cash Strategy Our Brands Our Markets Diesel Integrity & Compliance Commitment Excellence What‘s new with WLTP?

stricter car set-up and more realistic higher average and measurement conditions driving behaviour maximum speeds

optional equipment: CO2 a greater range of higher average and values and fuel consumption driving situations maximum drive power have to be provided for (urban, suburban, individual vehicles as built main road, motorway)

longer test distances shorter stops instead of average values, WLTP can give best and worst- case figures – better

representing highly diverging

driving styles 1 3 5 more dynamic more realistic ambient and representative temperatures, closer 2 4 accelerations and to the European decelerations average

79 Volkswagen Touareg

80 Audi e-tron

81 ŠKODA Kamiq

82 SEAT Tarraco

83 Porsche Cayenne E-Hybrid

84 Bentley Continental GT

85 Lamborghini Urus

86 Volkswagen Crafter Combi

87 MAN TGX 18.500 MAN TGE 5.180

88 Scania G 450 XT 8x4

89 We are stepping on the gas in terms of profitability, innovative power and sustainability The Key to Mobility Creating Value with Financial Services Investor Update – Volkswagen Financial Services Disclaimer

The following presentations contain forward-looking statements and information on the business development of the Volkswagen Group. These statements may be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words with similar meaning. These statements are based on assumptions, 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. These assumptions relate in particular to the development of the economies of individual countries and markets, the regulatory framework and the development of the automotive industry. Therefore the estimates given involve a degree of risk, and the actual developments may differ from those forecast. The Volkswagen Group currently faces additional risks and uncertainty related to pending claims and investigations of Volkswagen Group members in a number of jurisdictions in connection with findings of irregularities relating to exhaust emissions from diesel engines in certain Volkswagen Group vehicles. The degree to which the Volkswagen Group may be negatively affected by these ongoing claims and investigations remains uncertain. Consequently, a negative impact relating to ongoing claims or investigations, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) 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 in particular relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi and Czech koruna. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

Under the brand “Volkswagen Financial Services – the key to mobility“ the subsidiaries of Volkswagen Financial Services AG as well as its sister company Volkswagen Bank GmbH render various services under the joint brand "Volkswagen Financial Services". Such services are banking services (through Volkswagen Bank GmbH), leasing services (through Volkswagen Leasing GmbH), insurance services (through Volkswagen Versicherung AG, Volkswagen Autoversicherung AG) as well as mobility services (inter alia through Volkswagen Leasing GmbH). In addition, insurance products of other providers are offered.

2 Volkswagen Group Structure

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 3 Volkswagen Group – Group structure of Volkswagen Financial Services

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 4 Optimized Structure for Financial Services Business (starting 01.09.2017) Substantial Effects

Volkswagen Bank GmbH Volkswagen Financial Services AG

European Volkswagen Bank branches Non-bank-related European affiliates Affiliates with European credit business Affiliates in: Asia-Pacific, Latin America Domination and profit and loss transfer Domination and profit and loss transfer agreement with Volkswagen AG agreement with Volkswagen AG Supervised and regulated by ECB No supervision and regulation by ECB anymore

Advantages: - Optimized capital requirement - Reduced complexity & improved transparency - Agile for new business models

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 5 We offer the whole range of services under one roof*

Volkswagen Financial Services

BANK LEASING INSURANCE MOBILITY PAYMENT

Bank Direct Bank Leasing Insurance Services Fleet Charge & Rental Parking Payment Management Fuel

• Retail • Deposits • Finance Lease • Motor Insurance • Service & • Multi-brand • Fuel and • Long- term • Payment for • Payment Financing Full and capability Service Rental parking space platform • Instalment • Operating • Warranty Insurance Limited Cards • Wholesale Credit Lease • Short-term • Services around • Mobile • GAP Insurance Mainte- • Reporting Financing • Charge & Rental parking Payments • Investment nance • Credit Protection Fuel Card • Factoring Products • Fleet • Micro Rental • On- and off- • Mobile Wallet Insurance • Tyres Consulting street solution • Car sharing • Industry • Telematics

• LifeCycle Services

*Displayed portfolio depends on the market; products offered or mediated by different operative subsidiaries.

Frequency of customer contact

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 6 At a Glance (06/30/2018)

Volkswagen Bank GmbH Volkswagen Financial Services AG Total assets € 84.3 bn Total assets € 73.6 bn Equity € 11.4 bn Equity € 8.0 bn Customer deposits € 33.7 bn Customer deposits 68.5 m Operating profit € 567 m Operating profit € 329 m Employees 3,584 Employees 8,449 Contracts (units) 5.7 m Contracts (units) 8.4 m

Business Volume* € 68.4 bn Business Volume* € 51.5 bn

Leasing Credit € 25.3 bn Credit Leasing € 16.1 bn € 30.0 bn € 31.5 bn * * Dealer financing Dealer financing € 3.9 bn *Receivables + Leased Assets € 13.1 bn *Receivables + Leased Assets

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 7 Operating Income Volkswagen Bank GmbH Volkswagen Financial Services AG*

€ m € m 1,641 1,600 1,600 1,416 1,400 1,400 1,293 1,214 1,200 1,200 994 1,000 1,000 945 814 800 800 645 609 600 539 448 455 446 600 355 400 567 400 200 200 329 0 0 2011 2014 2017 HY 18 2011 2014 2017 HY 18

* Figures of Volkswagen Bank GmbH consolidated within Volkswagen Financial Services AG until 2016 Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 8 Contract Portfolio Continuous portfolio expansion Volkswagen Bank GmbH Volkswagen Financial Services AG* in ‘000 units in ‘000 units 12,081

8,848 8,524 8,397 6,852 5,534 5,711 Insurance/ 4,796 Insurance/ Services 1,760 Services Leasing 2,820 2,055 2,351 1,489 Leasing 1,559 Credit 2,462 Credit 2,169

2011 2013 2015 2017 HY 18 2011 2013 2015 2017 HY 18 * Figures of Volkswagen Bank GmbH consolidated within Volkswagen Financial Services AG until 2016 Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 9 Portfolio Structure VWFS

Credit Risk is the predominant risk type whereof the major share is originated Retail from well diversified retail business with a low risk profile. 67% Wholesale 13% Other relevant risk types: - Residual Value Risk - Earning Risk - Operational Risk Fleet - Marketprice Risk 17% - Shareholder Risk Other 3% as of 12/31/2017

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 10 Volkswagen Financial Services – Credit Risks as of 31.03.2018

Credit risk remains at low level despite challenging market environment

Retail Financing

Leasing

Corporate Financing

Total Provision Ratio total provisions in proportion to the total Total Provision Ratio =   according to IAS 39 receivables’ volume at reporting date

drawings on provisions including direct write-offs relative to the Ø Dynamic Loss Ratio Dynamic Loss Ratio =   average volume of receivables (last four quarters)

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 11 Report by Deutsche Automobil Treuhand (June 18) Residual Value Development from list price in % All segments and brands, 3 year old cars, mileage: 15/20k p.a. Petrol + 1.2%

- 2.3%

• Generally, Automotive and Financial Services Division are operating “at Arms Length" when setting residual values. Adequate provisioning for our existing portfolio is done on the basis of a regular portfolio assessment. • All residual value risks are completely covered by provisions and equity according to IAS 36. Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 12 The International Used Car Broker is the additional and international channel in remarketing, implemented in several European countries

. Currently 8 VW FS AG countries participating . 2 additional countries in discussion

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 13 Strategic Funding Allocation as of June 30, 2018

Volkswagen Bank GmbH Strategic Funding Mix Volkswagen Financial Strategic Funding Mix Total € 84.3 bn Services AG Total € 73.7 bn

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 14 Rating History (08/13/2018) – Moody’s

Moody‘s S&P Development of credit ratings (Moody’s)

Toyota Aa3 AA-

Honda A2 A+

BMW A1 A+

VW AG A3 2) BBB+ 2)

2) 2) BBB+ VW FS AG A3

VW Bank GmbH A1 2) 3) A- 1) 3)

Scania -- BBB+ 2)

Daimler A2 A

RCI Banque Baa1 BBB

FMCC Baa2 BBB

Banque PSA A3 -*

1) Outlook: negative 2) Outlook: stable 3) Bonds are rated senior subordinated BBB+ (S&P) and junior senior unsecured A3 (Moody‘s) * withdrawn at bank‘s request VolkswagenVolkswagen Financial Financial Services Services AG has has a solida solid and and stable stable rating rating history. history.

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services Data Source: Moody‘s, Standard and Poor‘s 15 Volkswagen Financial Services organisational structure and guarantee scheme

Volkswagen AG BBB+ (s) / A3 (s)1

100% Owner + Control and Profit & Loss Transfer Agreement

Volkswagen FS AG Volkswagen Bank GmbH BBB+ (s) / A3 (s)1 A- (n) / A1 (s)1

Guarantee

Volkswagen Financial Services Australia Volkswagen Financial Services Japan Volkswagen Financial Services N.V. Volkswagen Leasing GmbH

1)Credit Ratings from Standard&Poors / Moody‘s as per 13 August 2018; (n) Outlook negative, (s) Outlook stable

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 16 Worldwide Capital Market Activities

VW Bank Polska * VW FS Group PLN 3 bn Debt Instrument € 5 bn CP Program Issuance Program € 25 bn Debt Issuance Program VW Bank VW Bank Russia € 2.5 bn CP Program Domestic 100bn RUB VW Leasing Mexico € 10 bn Debt Issuance Program Bond Program MXN 20 bn Dual CP + MTN Program VW Bank Mexico MXN 7 bn Debt Issuance Program VW FS Korea Domestic KRW Bond Issuances

VDF Turkey VW FS Japan Domestic TRY Bond JPY 60 bn ECP Program Issuances VW FS India VW Finance (China) Domestic Domestic RMB Bond INR CP + Bond Issuances Issuances Banco VW Brazil Domestic Letra Financeira VW FS Australia * Guarantee Volkswagen Financial Services AG AUD 3 bn Debt Issuance Program Volkswagen Bank GmbH Programs 17 Worldwide ABS Activities

VW Leasing/DutchLease VW Leasing VCL Master VCL program DFM VCL Master DFM Master MAN Financial Services Trucknology VW Bank VW Finance China VW FS UK Driver China program Driver program Driver UK program Driver Master Driver UK Master

VW Bank France Driver France program VW FS Japan Driver Japan program VW Finance Spain Driver España program VDF Turkey Driver Turkey Master

Banco VW Brazil Driver Brasil program VW Bank Italy VW FS Australia Driver Italia program Driver Australia program Driver Australia Master Volkswagen Bank GmbH Programs 18

Recent Public DCM Deals 2018 (Volkswagen Financial Services AG and Volkswagen Bank GmbH)

Volkswagen Bank  Volkswagen Bank GmbH: 06/2018 EUR 2bn, due 09/2021, 12/2021, 06/2024 GmbH  Volkswagen Bank GmbH: 12/2017 EUR 2bn, due 06/2021, 06/2023, 12/2025

 Volkswagen Financial Services N.V.: GBP 300m 02/2018, due 06/2022  Volkswagen Financial Services AG: EUR 2.25bn 04/2018, due 10/19, 04/21 & 04/23  Volkswagen Financial Services N.V.: NOK 500m 04/2018, due 04/2021

 Volkswagen Financial Services Australia PTY LTD: AUD 400m 04/2018, due 04/2021 Volkswagen Financial  Volkswagen Financial Services N.V.: SEK 500m 05/2018, due 05/2021 Services AG  Volkswagen Leasing Mexico S.A. de C.V.: MXN 2bn 05/2018, due 05/2022  Banco Volkswagen S.A.: BRL 489.2m 06/2018, due 06/2020  Volkswagen Financial Services AG: EUR 500m 07/2018, due 07/2020  Volkswagen Leasing GmbH: EUR 2.5bn 08/2018, due 02/2021 & 02/2023 & 08/2025  Volkswagen Financial Services N.V.: GBP 500m 08/2018, due 09/2021  OOO Volkswagen Bank RUS: RUB 5bn 08/2018, due 08/2021  Volkswagen Financial Services Australia PTY LTD: AUD 350m 08/2018, due 02/2022

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 19

Recent Public ABS Deals 2018 (Volkswagen Financial Services AG and Volkswagen Bank GmbH)

 Driver Espania five (Volkswagen Finance S.A.): EUR 1.0bn (02/2018) Volkswagen Bank  Driver fourteen (Volkswagen Bank GmbH): EUR 900m (03/2018) GmbH  Driver Italia one (Volkswagen Bank GmbH): EUR 500m (04/2018)

 Driver fifteen (Volkswagen Bank GmbH): EUR 750m (08/2018)

 Driver China eight (Volkswagen Finance (China) Co.): RMB 3.2 bn (12/2017) Volkswagen Financial  Driver Japan seven (Volkswagen Financial Services Japan): JPY 55 bn (02/2018) Services AG  Driver Turkey Master (Volkswagen Dogus Finansman S.A.): TRY 1.1 bn (02/2018)  VCL 26 (Volkswagen Leasing GmbH): EUR 1.5 bn (03/2018)  Driver Australia five (Volkswagen Financial Services Australia Pty Ltd.): AUD 750m (04/2018)

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 20 Volkswagen Financial Services follows consequently its vision and the targets of Route2025

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 21 ROUTE 2025 | Our Focus Topics

Digitalization Operational Excellence

Used Car Mobility Business Services

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 22 Digitalization

Volkswagen Financial Services will digitialize all core products by 2020 and extends its distribution channels Past: single channel By 2020: multi channel By 2025: omni channel

website in-car integration dealer

brand dealer ecosystem customer

customer customer touchpoints & customer portal platforms

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 23 Mobility

Growing business with leading companies per business segment

USED CARS

& Used Car multi-brand

platform Volkswagen Finance Luxemburg II S.A.

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 24 Used Car

Used Car Business - Hey Car: development of a real alternative to the current duopoly Online share of trades

Audi • and counts for VW Others Dealers own website 85% of the Market 2% 1% 10% 2% • Constant price increase for both platforms

• Dominant platforms controlled 55% by American tech companies 30% mobile.de AutoScout24 Hey Car is being developed as an alternative in close cooperation with dealers

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 25 Outlook Volkswagen Financial Services AG (Half-Yearly Financial Report 2018) We anticipate that the trend toward an increase in new contracts and growth in the portfolio of current contracts from previous years will continue. In addition, we assume that we will be able to keep our 2018 penetration rate at 2017 levels in a vehicle market generally expected to expand more slowly. We expect the business volume to increase slightly. Assuming that margins remain stable, the operating profit in fiscal year 2018 is expected to be at the level achieved in fiscal year 2017. (This forecast is based on the current corporate structure of Volkswagen Financial Services AG and does not take into account any future changes that may result from the restructuring program that has been initiated.)

Volkswagen Bank GmbH (Half-Yearly Financial Report 2018) We anticipate that we will be able to sustain stable levels of new contracts, current contracts, penetration and volume of business in 2018. The volume of deposits is also projected to remain stable in 2018. We expect the operating profit for fiscal year 2018 to be moderately below the level achieved in fiscal year 2017 because of the positive nonrecurring items recognized in 2017. (This forecast is based on the current corporate structure of Volkswagen Bank GmbH and does not take into account any future changes that may result from the restructuring program that has been initiated.)

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 26 Thank You.

Volkswagen Financial Services AG Katja Hauer Investor Relations Gifhorner Str. 57 Volkswagen Financial Services 38112 Braunschweig Germany Tel.: +49 531 212 84608 www.vwfsag.de/en [email protected]

27 Volkswagen Financial Services at a glance (06/30/2018)

Worldwide Presence Key Figures

Total Assets € 196.5 bn Equity € 25.6 bn Customer Deposits € 33.6 bn Operating Profit € 1.2 bn Employees 13,943 Contracts (units) 16.8 m

Business Volume*

Leasing Credit Volkswagen Financial Services conducts € 79.7 bn € 61.2 bn business in 48 markets. Wholesale € 19.9 bn

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services * Receivables + Leased Assets 28 Operating Income Volkswagen Financial Services

€ m 2,450 2,500 2,105 2,000

1,500 1,416 1,214 1,293 945 1,231 1,000 814 719 401 500

0 2010 2013 2016 2017 HY 18

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 29 Contract Portfolio Continuous portfolio expansion Volkswagen Financial Services in ‘000 units

17,234 17,575

13,230 Insurance/ 7,647 10,725 Services 8,244

4,082 Leasing

5,846 Credit

2011 2013 2015 2017 HY 18

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 30 Integrating Automotive and Financial Services

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 31 Creating Value

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 32 Volkswagen Financial Services offers the key to mobility also for future mobility concepts

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 33 Strategic Funding Allocation as of June 30, 2018 Total € 196.5 bn

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 34 Volkswagen Bank GmbH Key data 2014 – HY 2018 (IFRS)

2014 2015 2016 2017 HY 2018

Portfolio (‘000) 2,565 2,767 3,002 5,533 5,710

Retail + Leasing receivables (€ mn) 23,887 25,814 27,954 52,316 55,298

Dealer financing (€ mn) 8,928 10,302 10,538 12,430 13,103

Customer deposits (€ mn) 25,252 27,877 35,666 33,583 33,712

Employees 1,123 1,185 1,293 3,549 3,584

IFRS profit before tax (€ mn) 464 575 669 992 575

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 35 Volkswagen Financial Services AG Key data 2014 – HY 2018 (IFRS)

2014 2015 2016 2017* HY 2018*

Portfolio (‘000) 10,249 12,081 13,244 8,524 8,397

Retail + Leasing receivables (€ mn) 76,749 83,351 90,666 46,649 47,604

Dealer financing (€ mn) 12,625 13,967 14,638 3,584 3,949

Customer deposits (€ mn) 26,224 28,109 36,149 69 69

Employees 11,305 11,746 11,819 8,555 8,449

IFRS profit before tax (€ mn) 1,317 1,513 1,650 643 352

* Figures of Volkswagen Bank GmbH consolidated within Volkswagen Financial Services AG until 2016

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 36 Customer Deposits in bn Euro

36.1 33.5 33.6

28.1 11.2 26.2 9.4 9.2 24.9 24.3 23.8 7.8 5.5 6.5 19.5 20.1 4.6 4.5 3.6 24.9 3.7 24.1 24.4 20.3 12.8 19.8 19.7 19.4 1.3 19.2 15.8 16.5 11.5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 HY 2018

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 37 Volkswagen Two Strong Brands in the Automobile Securitisation Market

. Securitisation Programme of VW Bank GmbH/ VW FS . Securitisation Programme of VW FS AG AG . Portfolio of auto leases . Portfolio of auto loans . Program established in 1996 . Program established in 2004 . 26 public transactions placed in the market so far . 51 public transactions placed in the market so far . Volume of public transactions: € 26.2bn . Volume of public transactions: € 32.2bn

. Highly granular risk profile . International roll out (2008 UK, 2011 Spain, 2012 Japan and Brazil, 2013 France and Australia, 2014 China, 2016 Netherlands, 2018 Turkey) . Stable and diversified investor base Source: VW Bank GmbH

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 38 Volkswagen Financial Services Digital Solution GmbH (VW FS DS) Target Structure & Status

100% 100% Volkswagen AG

VW Bank GmbH VWFS AG

51% VWFS 49% Digital Solutions GmbH

Structure and Business Activities • Shareholders of Volkswagen Financial Services Digital Solutions GmbH are Volkswagen Bank GmbH (51%) and Volkswagen Financial Services AG (49%) • VW FS DS will provide services exclusively for Volkswagen Bank GmbH and Volkswagen Financial Services AG • Business activities concentrated within VW FS DS largely comprise of IT, Customer Services, Process Management and Internal Services. Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 39 Global Passenger Car Market 2017/2018/2020 Slowdown in Western Europe due to falling demand in UK; Stagnation in USA at a high level; Recovery in Brazil and Russia from a low level; China remains largest driver of passenger car demand

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 40 Mobility

Our Vision | A look into the (near!) future: new services will be utilized „in the car“ and „seamless“ (I/II) Example: Business trip from London to Frankfurt

P

. Car books a free parking space at target . Navigator receives location . Entering the car park at target address the airport . Car plans charging from calendar process . Car is charging and . VW Leasing billed finance company car

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 41 Mobility

Our Vision | A look into the (near!) future: new services will be utilized „in the car“ and „seamless“ (II/II) On arrival at airport Frankfurt flexible mobility is guaranteed

Invoice (via FS-platform) P Parking Charging The car pays the toll Billing

Rental car VW FS Rent-A-Car One invoice car is ready at the Leaving the generated Toll airport car park

Swiss Bond Congress | Katja Hauer | 19 September, 2018 | Investor Update Volkswagen Financial Services 42