Volkswagen AG — Earnings Release 2007

Feb 29, 2008

News Details

Ad-hoc | 29 February 2008 16:12

Volkswagen AG: Volkswagen presents 2007 consolidated financial statements

VOLKSWAGEN AG / Final Results

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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Volkswagen presents 2007 consolidated financial statements:

• At EUR 6.5 billion, the Volkswagen Group recorded the highest profit
  before tax in the history of the Company; considerably higher than the
  target of at least EUR 5.1 billion originally planned for 2008

• Operating profit of EUR 6.2 billion increased by 40.3 percent compared
  with the previous year’s operating profit before special items, and
  more than three times higher after special items

• The Board of Management and Supervisory Board are proposing an
  increase in dividends for Volkswagen shareholders to EUR 1.80 per
  ordinary share

• Attractive model range further expanded; deliveries reach a record
  level of just under 6.2 million vehicles

• Sound balance sheet ratios: the equity ratio of the Group improved from
  19.7 percent to 22.0 percent and of the Automotive Division from 28.8
  percent to 32.3 percent

• Cash flows from operating activities in the Automotive Division
  increased by a further 16.4 percent on the high 2006 level to EUR 13.7
  billion

• Investments in property, plant and equipment in the Automotive Division
  were EUR 4.6 billion, an increase of 25.0 percent on the low level of
  the previous year; the ratio of investments in property, plant and
  equipment to sales revenue (capex) increased from 3.8 percent to 4.6
  percent

• Net liquidity in the Automotive Division increased to EUR 13.5 billion
  (previous year: EUR 7.1 billion).

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January-December 2007 2006 +/- (%)

Volkswagen Group (IFRSs):

Deliveries to customers ´000 units 6,189 5,733 + 7.9
Vehicle sales ´000 units 6,192 5,720 + 8.2
Production ´000 units 6,213 5,660 + 9.8
Employees Dec. 31 329,305 324,875 + 1.4

Continuing operations:
Sales revenue EUR million 108,897 104,875 + 3.8

Operating profit
before special items EUR million 6,151 4,383 + 40.3
Special items EUR million - -2,374 x
Operating profit
after special items EUR million 6,151 2,009 x

Profit before tax from
continuing operations EUR million 6,543 1,793 x
Profit from continuing operations EUR million 4,122 1,955 x

Profit from discontinued
operations*) EUR million - 795 x
Profit after tax EUR million 4,122 2,750 + 49.9

Minority interests EUR million 2 1 x
Profit attributable to
shareholders of Volkswagen AG EUR million 4,120 2,749 + 49.9

Earnings per share (basic)
- Ordinary shares EUR 10.43 7.07 + 47.5
of which from continuing operations EUR 10.43 5.03 x
- Preferred shares EUR 10.49 7.13 + 47.1
of which from continuing operations EUR 10.49 5.07 x

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

Cash flows from operating activities EUR million 13,675 11,745 + 16.4
Cash flows from investing activities EUR million 6,566 6,114 + 7.4
- of which investments in property,
plant and equipment EUR million 4,555 3,644 + 25.0
Net liquidity at December 31 EUR million 13,478 7,133 + 89.0

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Volkswagen AG (German Commercial Code):

Net income EUR million 1,455 945 + 54.0

Dividend proposal:
Dividend - per ordinary share EUR 1.80 1.25
- per preferred share EUR 1.86 1.31

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*) Net gain on disposal of the Europcar group and the Europcar´s
current profit after tax for January to May 2006.

Its diverse range of brands gives the Volkswagen Group a critical
competitive advantage. In 2008, almost all brands will again present
attractive new models, enabling us to selectively complement the Group’s
product portfolio and move into further market segments. We therefore
expect deliveries to customers to exceed the record set in 2007, with
sales figures rising in the Asia-Pacific and Central and Eastern Europe
regions in particular.

As a result of the expected increase in unit sales, the Volkswagen
Group’s sales revenue in 2008 will be higher year-on-year. The further
optimization of our processes and our continued systematic cost
discipline will also have a positive impact on earnings development.
Overall, we expect the Volkswagen Group’s 2008 operating profit to
exceed the 2007 level.

The Annual Press Conference and the International Investor Conference
will be held on March 13, 2008 in Wolfsburg.

Wolfsburg, February 29, 2008

Volkswagen AG – The Board of Management

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.
29.02.2008 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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