2021-06-07 VGC Introduction Presentation
未来之行 Mobility for Generations to Come
Mr. Rainer Seidl EVP Finance & CFO of Volkswagen Group China
2021 J.P. Morgan China Summit, June 2021 Disclaimer
The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal environment in individual countries, economic regions and markets, and in particular for the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given entail a degree of risk, and actual developments may differ from those forecast. Any changes in significant parameters relating to our key sales markets, or any significant shifts in exchange rates or commodities relevant to the Volkswagen Group or deviations in the actual effects of the Covid-19 pandemic from the scenario presented will have a corresponding effect on the development of our business. In addition, there may be departures from our expected business development if the assessments of the factors influencing value enhancement and of risks and opportunities presented develop in a way other than we are currently expecting, or if additional risks and opportunities or other factors emerge that affect the development of our business.
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 Such statements are valid on the date of publication and can be superseded.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.
2021 J.P. Morgan China Summit, June 2021 2 Volkswagen Group China at a glance
1984 2017 2020
The joint venture agreement for Shanghai VW and JAC established a new joint • 19.3% market share in China’s passenger Volkswagen Automotive Co. (today: SAIC venture for electric vehicles. car market in 2020 VOLKSWAGEN) was signed in Shanghai. • remained No. 1 choice for Chinese customers
40% 25% 50% 1983 (Santana B2) 2023 (SOP) 75% SAIC JAC VCIC 1) VCIC 10% VW AG
The beginnings Modernization and portfolio expansion
First contact with FAW-Volkswagen was established. Audi joined the FAW-Volkswagen joint Audi FAW NEV Co. Ltd. was established to China - the Chinese venture. produce electric vehicles based on PPE government identified platform. 1993 and chose Volkswagen as a partner. 5%
40% Audi FAW NEV Co. Ltd. 25% 60% 55% 2024 (SOP) 1991 (Jetta)
10% 1978 5% FAW VCIC 1991 FAW VCIC Audi AG VW AG Audi AG 2021
Note: VCIC 100% owned by VW AG. 1) VW AG includes the stakes held by ŠKODA AUTO a.s. and Audi AG. 2021 J.P. Morgan China Summit, June 2021 3 Volkswagen Group production sites all over China
Volkswagen Group production facilities Facts and figures
41 production plants in China in 2021 6 FAW-Volkswagen vehicle plants Changchun (2 plants) Changchun Urumqi Chengdu
Dalian Foshan (1 MEB plant) Beijing Tianjin Qingdao Qingdao Tianjin Yizheng Chengdu Hefei 9 SAIC VOLKSWAGEN vehicle plants Nanjing Shanghai Shanghai (3 MQB plants + 1 MEB plant) Changsha Ningbo Nanjing Foshan Yizheng Ningbo Urumqi FAW-Volkswagen vehicle plants SAIC VOLKSWAGEN vehicle plants Changsha Volkswagen Anhui vehicle plant Volkswagen (Anhui) Automotive Co. Ltd., Hefei MEB plant (SOP Audi PPE vehicle plant 2023) Component plants Audi FAW NEV Co. Ltd., Changchun PPE plant (SOP 2024) 24 component plants
2021 J.P. Morgan China Summit, June 2021 4 Strong brands and products in China
2021 J.P. Morgan China Summit, June 2021 5 Sales performance by brand of Volkswagen Group China in 2020
‘000 units 2019 -9.1% units 4,500 4,230 2020 6,000
4,000 3,845 5,500 -13.6% -81.0% 3,500 5,000 3,120 4,500 3,000 4,057 2,696 4,000
2,500 +48.5% 3,500
2,880 3,000 2,000 2,500 1,940 1,500 2,000 +5.4% 1,000 -21.5% 1,500 690 727 -38.7% +261% 769 771 1,000 +2.6% 604 500 282 173 155 500 43 87 89 0 0 1)
1) incl. Hong Kong, excl. Ducati, MAN and Scania. All figures are rounded.
2021 J.P. Morgan China Summit, June 2021 6 Key sales figures and financials 2020
bn € Operating profit bn € Dividends received 12 2.0
10 1.6 8 1.2 6 0.8 4
2 0.4
0 0.0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Operating profit (100%) Operating profit (proportionate) FAW-VW SVW
In 2020 In 2020 The proportionate operating result stood at €3.6 bn The dividend received from FAW-VW is €1.3 bn The 100% operating result stood at €9.75 bn The dividend received from SVW is €1.4 bn
Note: Proportionate dividends are shown net of withholding tax. Source: Volkswagen Group Annual Report 2020.
2021 J.P. Morgan China Summit, June 2021 7 Expand NEV footprint in China across all entities using all platforms
Audi FAW NEV Co., Ltd.
MQB Bora BEV Tharu BEV Golf BEV E-Lavida Tayron PHEV Tiguan PHEV Magotan PHEV Passat PHEV
MLB A6L PHEV e-tron …
MEB Capa. 900 Tsd. ID. Family ID. Family (SOP 2023) … …
PPE Capa. 300 Tsd. (SOP 2024)
2021 J.P. Morgan China Summit, June 2021 8 Market for NEVs is expected to grow rapidly
New energy passenger vehicles market (in ’000 units) Volkswagen Group China In 2020: Battery Electric Vehicles >20 NEV models of all our brands Plug-in Hybrid Electric Vehicles >65% of them were locally produced
>4/5 By 2021: 310 555 1,007 1,079 1,146 NEV portfolio will grow to 30+ models 76% 75% 80% 81% 24% 81% <1/5 19% 25% 20% 19% By 2025: 2016 2017 2018 2019 2020 … 2025e 15 local MEB models across various brands 35% of VGC portfolio will be electrified models 1.5 mn NEV deliveries annually
Source: 2016-2020 CPCA
2021 J.P. Morgan China Summit, June 2021 9 Volkswagen Group is pursuing a holistic strategy that enables a successful transformation towards intelligent, connected e-mobility
We invest in Today To ensure By 2030 Pure-electric companies • VW Anhui • Audi FAW NEV Co., Ltd. >2 mn units sales annually Battery production • Gotion High-Tech
Charging infrastructure • CAMS ~12 mn pure-electric car parc from Volkswagen R&D capabilities Group China
2021 J.P. Morgan China Summit, June 2021 10 Thank you!
If any further questions, please contact:
Ms. Lai WANG
Investor Relations Volkswagen Group China [email protected]
2021 J.P. Morgan China Summit, June 2021 11