Volkswagen AG — Earnings Release 2003

Feb 18, 2004

News Details

Ad-hoc | 18 February 2004 10:29

The Volkswagen Board of Management finalizes annual financial statements:

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– The Volkswagen Board of Management finalizes annual financial statements: – 2003 worldwide deliveries increased to once again over 5 million vehicles – Sales revenue increased to 87.2 billion EUR in difficult economic conditions – Investing activities in the Automotive Division reduced by 1 percent despite new model initiative (Golf, Touran, New Beetle Cabrio, Audi A3, Audi A8, new Transporter generation etc.) – Number of employees slightly higher, mainly as a result of increase in the number of consolidated Group companies – Difficult conditions hinder business of Automotive Division; positive trend in Financial Services Division continues – Operating profit before special items down by 47.7 % to 2,491 million EUR – One-off special items totalling 711 million EUR resulting from revaluation of upfront expenditures and from restructuring measures – Tax benefits recognized for the first time in respect of Group companies based in new EU member states have positive effect on tax ratio – The Board of Management proposes to reduce the dividend by 19.0 %, taking the fall in earnings into account, but also considering a more positive medium-term earnings expectation —————————————————————————– January-December 2003 2002 +/- (%) —————————————————————————– Volkswagen Group (IFRS basis): Deliveries to customers ‘000 units 5,015 4,984 + 0.6 Production ‘000 units 5,021 5,023 – 0.1 Employees 31.12. 336,843 324,892 + 3.7 Sales revenue EUR million 87,153 86,948 + 0.2 Operating profit before special items EUR million 2,491 4,761 – 47.7 Special items EUR million 711 – x Operating profit after special items EUR million 1,780 4,761 – 62.6 Profit before tax EUR million 1,529 3,986 – 61.6 Income tax expense EUR million 411 1,389 – 70.3 Profit after tax EUR million 1,118 2,597 – 57.0 Minority interests EUR million – 23 – 13 – 72.0 Net profit attributable to shareholders of Volkswagen AG EUR million 1,095 2,584 – 57.6 Earnings per share (undiluted) – Ordinary share EUR 2.84 6.72 – 57.7 – Preferred share EUR 2.90 6.78 – 57.2 Automotive Division: Cash flows from investing activities EUR million 9,031 9,121 – 1.0 Cash flows from operating activities EUR million 6,796 8,065 – 15.7 —————————————————————————– Volkswagen AG (German Commercial Code basis): Profit after tax EUR million 633 1,036 – 38.9 Proposed dividend: Dividend distribution EUR million 409 505 – 19.0 Dividend – per ordinary share EUR 1.05 1.30 – per preferred share EUR 1.11 1.36 —————————————————————————– The Annual Press Conference on March 9, 2004 and the International Investor Conference on March 10, 2004 will take place in Wolfsburg. Wolfsburg, February 18, 2004 Volkswagen AG – The Board of Management end of ad-hoc-announcement (c)DGAP 18.02.2004 ——————————————————————————– WKN: 766400; ISIN: DE0007664005; Index: DAX, Euro Stoxx 50 Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München und Stuttgart; EUREX; Amsterdam, Antwerpen, Brüssel, London, Luxemburg, Paris, Schweizer Börse (Hauptsegment), Wien, Tokio, Madrid, Barcelona, Bilbao, Valencia und Mailand 181029 Feb 04