Volkswagen AG — Earnings Release 2010

Feb 25, 2011

VOLKSWAGEN AG / Final Results

25.02.2011 14:30

Dissemination of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------------

Volkswagen presents 2010 consolidated financial statements:

• Volkswagen Group generates record profit in fiscal year 2010
• Operating profit up significantly on prior-year level at EUR 7.1 billion (EUR 1.9 billion)
• Profit before tax increases by EUR 7.7 billion to EUR 9.0 billion; positive effects from equity-accounted investments and from measurement of put/call rights relating to Porsche Zwischenholding GmbH at the reporting date
• Board of Management and Supervisory Board propose increase in the dividend for Volkswagen shareholders to EUR 2.20 per ordinary share and EUR 2.26 per preferred share
• Deliveries top the 7 million mark for the first time at 7.2 million vehicles (+ 13.7 percent); market share increased further
• Business expansion and implemented capital increase strengthen Group's financial stability and flexibility in the context of the planned creation of an integrated automotive group with Porsche
• Further rise in Automotive Division's net liquidity against last year's high figure to EUR 18.6 billion (EUR 10.6 billion)

------------------------------------------------------------------------- January-December 2010 2009 +/- (%) ------------------------------------------------------------------------- Volkswagen Group (IFRSs): Deliveries to customers '000 units 7,203 6,336 + 13.7 Vehicle sales '000 units 7,278 6,310 + 15.4 Production '000 units 7,358 6,055 + 21.5 Employees Dec. 31 399,381 368,500 + 8.4 Sales revenue EUR million 126,875 105,187 + 20.6 Operating profit EUR million 7,141 1,855 x Profit before tax EUR million 8,994 1,261 x Profit after tax EUR million 7,226 911 x Noncontrolling interests EUR million 392 - 49 x Profit attributable to shareholders of Volkswagen AG EUR million 6,835 960 x Earnings per share (basic) - Ordinary shares EUR 15.17 2.37 x - Preferred shares EUR 15.23 2.43 x

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

Cash flows - operating activities	EUR million	13,930	12,815	+ 8.7
Cash flows - investing activities*) EUR million		9,095	10,252	- 11.3
- of which investments in property,
plant and equipment	EUR million	5,656	5,783	- 2.2
Net liquidity at December 31	EUR million	18,639	10,636	+ 75.2

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Volkswagen AG (German Commercial Code):
Net income	EUR million	1,550	1,082	+ 43.3
Dividend proposal: Dividend - per ordinary share - per preferred share -------------------------------------------------------------------------	EUR EUR	2.20 2.26	1.60 1.66

*) Excluding acquisition and sale of investees: EUR 7,034 million (previous year: EUR 7,585 million).

The Volkswagen Group's key competitive advantages are its unique brand portfolio and its continually growing presence in all key regions of the world. Thanks to our expertise in technology and design, we have a diverse, attractive and environmentally friendly range of products that meets all customer desires and needs. In addition, the modular toolkit system, which we are continually optimizing, will have an increasingly positive effect on the Group's cost structure. In 2011, the Volkswagen Group's nine brands will once again introduce a large number of fascinating new models to the market, thus further expanding our strong position in the global markets. We therefore expect our deliveries to customers to increase as against the previous year.

We expect the Group's sales revenue and operating profit in 2011 to be higher than the previous year. However, the continuing volatility in interest and exchange rate trends and commodities prices will weaken the positive volume effect. Disciplined cost and investment management and the continuous optimization of our processes remain core components of our 'Strategy 2018'.

The Annual Press Conference and the Investor Conference will take place on March 10, 2011 in Wolfsburg.

Wolfsburg, February 25, 2011

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 in particular to the US dollar, sterling, Czech koruna, Swedish krona, Russian ruble, Australian dollar, Polish zloty, Swiss franc, Mexican peso and Japanese yen. In addition, expected business development may vary if this report's assessments of value-enhancing factors and risks develop in a way other than we are currently expecting.

25.02.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English Company: 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:	DE0007664039, DE0007664005
Indices:	DAX, Euro Stoxx 50
Listed:	Regulierter Markt in Berlin, Düsseldorf, Frankfurt
	(Prime Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX; London, Luxembourg, SIX
Category Code:	FR
LSE Ticker:	VKW
Sequence Number:	707
Time of Receipt:	Feb 25, 2011 13:56:56
End of Announcement	DGAP News-Service

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