Volkswagen AG — Earnings Release 2008

Oct 30, 2008

News Details

Ad-hoc | 30 October 2008 10:18

Volkswagen AG: Interim Report January-September 2008

VOLKSWAGEN AG / Interim Report

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Interim Report January-September 2008:

• At EUR 4.9 billion, Volkswagen Group operating profit in the period
  from January to September 2008 exceeds previous year's figure by
  15.0 percent

• Profit before tax up EUR 0.5 billion year-on-year to EUR 5.3 billion

• Group sales revenue 5.5 percent higher than in the prior-year period at
  EUR 85.4 billion

• Automotive Division's ratio of investments in property, plant and
  equipment (capex) to sales revenue at 4.9 percent (3.6 percent)

• At EUR 11.8 billion, net liquidity in the Automotive Division remains
  at a high level after the acquisition of additional Scania shares

• Scania consolidated as the Group's ninth brand

• Volkswagen's products inspire:

• Deliveries to customers worldwide up 3.9 percent year-on-year to
  4.8 million vehicles

• Volkswagen Group gains further market share worldwide and advances
  into the top three largest automobile manufacturers

• Deliveries in Asia-Pacific, South America, Central and Eastern Europe
  at a high level; substantial growth in China, India, Brazil, Russia
  and the Ukraine, although the pace of growth has recently slowed
  significantly

• New Golf impresses the trade press

• Range of vehicles emitting less than 140g/km CO2 expanded to 91

• Scirocco successfully launched in Europe with efficient engine range

• World premiere of the new Audi A6 and Audi RS 6

• Volkswagen pick-up study makes its debut

• Positive customer response to the new SEAT Ibiza and the Skoda Superb

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January-September 2008 2007 +/- (%)

Volkswagen Group:

Deliveries to customers ‘000 units 4,797 4,616 + 3.9
Vehicle sales ‘000 units 4,856 4,574 + 6.2
Production ‘000 units 4,963 4,609 + 7.7
Employees Sept. 30/Dec. 31 373,409 329,305 + 13.4

Sales revenue EUR million 85,432 80,958 + 5.5

Operating profit EUR million 4,919 4,279 + 15.0
Profit before tax EUR million 5,264 4,732 + 11.2
Profit after tax EUR million 3,733 2,906 + 28.5

Automotive Division (including allocation of consolidation adjustments
between the Automotive and Financial Services divisions):

Cash flows from operating
activities EUR million 7,709 11,366 - 32.2
Cash flows from investing
activities*) EUR million 7,827 4,001 + 95.6
Net liquidity at Sept. 30 EUR million 11,767 13,857 - 15.1

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*) Excluding acquisition and disposal of equity investments:
EUR 4,874 million (previous year: EUR 3,320 million).

Its diverse range of brands gives the Volkswagen Group a critical
competitive advantage. We have again launched attractive new models in
2008. This has enabled us to selectively expand the Group's product
portfolio and move into new market segments.

We therefore expect our deliveries to customers in 2008 to beat the
previous year's figure. The Central and Eastern Europe, South America and
Asia-Pacific regions will record the strongest growth rates.

We are constantly improving our processes and systematically pursuing our
disciplined approach to cost management. Together with the higher sales
revenue resulting from the expected increase in unit sales, this will
help lift our operating profit for 2008 above the previous year's figure.

The above forecasts do not take into account the effects of the completed
acquisition of further shares of Scania on volume, earnings and financing
data.

After accounting for the effects of purchase price allocation, we expect
the consolidation of Scania from July 22, 2008 to make a slightly
positive earnings contribution in the second half of the year.

Wolfsburg, October 30, 2008

Volkswagen AG – The Board of Management

(The full interim report is available at 'www.volkswagenag.com/ir')

This report contains forward-looking statements on the business
development of the Volkswagen Group. These statements are based on
assumptions relating to the development of the economic and legal
environment in individual countries and economic regions, 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 the actual developments may differ from those forecast.

Consequently, any unexpected fall in demand or economic stagnation in our
key sales markets, such as Western Europe (and especially Germany) or in
the USA, Brazil, China, or Russia 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 relative to the US dollar,
sterling, yen, Brazilian real, Chinese renminbi and Czech koruna. In
addition, expected business development may vary if the assessments of
value-enhancing factors and risks presented in the 2007 Annual Report
develop in a way other than we are currently expecting.
30.10.2008 Financial News transmitted by DGAP

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Language: English
Issuer: VOLKSWAGEN AG
Brieffach 1849
38436 Wolfsburg
Deutschland
Phone: +49 (0)5361 9 - 49840
Fax: +49 (0)5361 9 - 30411
E-mail: christine.ritz@volkswagen.de
Internet: www.volkswagenag.com/ir
ISIN: DE0007664005, DE0007664039
WKN: 766400, 766403
Indices: DAX, Euro Stoxx 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg,
Luxembourg; Terminbörse EUREX; Foreign Exchange(s) London,
SWX

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