Volkswagen AG — Earnings Release 2008

Mar 2, 2009

News Details

UK Regulatory | 2 March 2009 15:19

VOLKSWAGEN AG: Volkswagen presents 2008 consolidated financial statements

VOLKSWAGEN AG / Final Results

Release of a UK Regulatory Announcement, 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 2008 consolidated financial statements:

• Volkswagen Group achieves significant goals despite dramatic
  deterioration in the operating environment

• Scania consolidated as the Group's ninth brand

• Operating profit of EUR 6.3 billion exceeds the high level of the
  previous year (EUR 6.2 billion)

• Board of Management and Supervisory Board propose an
  increased dividend of EUR 1.93 for Volkswagen shareholders

• Deliveries up 1.1 percent year-on-year, at 6.3 million vehicles;
  worldwide gains in market share

• Equity ratio of the Group improved from 22.0 percent to 22.3 percent;
  Automotive Division equity ratio increased from 32.3 percent to
  32.6 percent

• Automotive Division reported positive net cash flow adjusted for
  acquisition of Scania

• Net liquidity in the Automotive Division remained high at
  EUR 8.0 billion

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January-December 2008 2007 +/- (%)

Volkswagen Group (IFRSs):

Deliveries to customers '000 units 6,257 6,190 + 1.1
Vehicle sales '000 units 6,272 6,192 + 1.3
Production '000 units 6,347 6,213 + 2.1
Employees Dec. 31 369,928 329,305 + 12.3

Sales revenue EUR million 113,808 108,897 + 4.5

Operating profit EUR million 6,333 6,151 + 3.0
Profit before tax EUR million 6,608 6,543 + 1.0
Profit after tax EUR million 4,688 4,122 + 13.7

Minority interests EUR million - 65 2 x
Profit attributable to
shareholders of Volkswagen AG EUR million 4,753 4,120 + 15.4

Earnings per share (basic)
- Ordinary shares EUR 11.92 10.43 + 14.3
- Preferred shares EUR 11.98 10.49 + 14.2

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

Cash flows - operating activities EUR million 8,771 13,675 - 35.9
Cash flows - investing activities*) EUR million 11,450 6,550 + 74.8
- of which investments in property,
plant and equipment EUR million 6,762 4,555 + 48.5
Net liquidity at December 31 EUR million 8,039 13,478 - 40.4

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Volkswagen AG (German Commercial Code):

Net income EUR million 827 1,455 - 43.2

Dividend proposal:
Dividend - per ordinary share EUR 1.93 1.80
- per preferred share EUR 1.99 1.86

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*) Excluding acquisition and sale of investees: EUR 8,879 million
(previous year: EUR 5,681 million)

With its nine brands and young model range, the Volkswagen Group is well
positioned in terms of segment coverage, customer-focused technological
innovations and models for growth markets. In 2009, the individual brands
will again introduce numerous new and low-consumption models that will
further extend the Group's product portfolio and cover new market
segments. For this reason, although we assume that the Volkswagen Group
will be unable to escape the downward trend, we believe that it will
perform better than the market as a whole and will be able to gain
additional market share during the crisis.

The Group's sales revenue in 2009 will be lower than in the previous year
because of the decline in volume sales. Rising refinancing costs and a
worsening in the country mix will serve as an additional drag on
earnings. Volkswagen will counter this trend in particular through
disciplined cost and investment management and the continuous
optimization of its processes. Ecological relevance and the return on our
vehicle projects are the core elements of the '18 plus' strategy.

The high volatility of market developments does not currently permit any
reliable forecasts to be made for fiscal year 2009. Based on the
extremely weak business at the beginning of the year, earnings will not
reach the high levels of previous years.

The Annual Press Conference and the Investor Conference will be held in
Wolfsburg on March 12, 2009.

Wolfsburg, March 2, 2009

Volkswagen AG - The Board of Management

This report contains forward-looking statements on the future 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),
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, Mexican peso, yen, Brazilian real, Chinese renminbi and Czech
koruna.
02.03.2009 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
Indices: DAX, Euro Stoxx 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime
Standard), Hannover, Düsseldorf, Stuttgart, München,
Hamburg; Terminbörse EUREX; Foreign Exchange(s) London,
Luxembourg, SWX
Category Code: FR
LSE Ticker: VKW
Sequence Number: 108
Time of Receipt: March 02, 2009 14:46:42

End of News DGAP News-Service

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