Volkswagen AG — Earnings Release 2012

Oct 24, 2012

VOLKSWAGEN AG / Quarter Results

24.10.2012 10:15

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. ---------------------------------------------------------------------------

Interim Report January-September 2012:

• Volkswagen Group's positive development continues in a challenging environment
• Group sales revenue EUR 27.9 billion higher than the previous year, at EUR 144.2 billion
• Operating profit at EUR 8.8 billion (EUR 9.0 billion)
• Profit before tax increases by EUR 6.3 billion to EUR 23.0 billion; clearly positive effects from measurement of the put/call rights relating to Porsche at the reporting date and from the remeasurement at the contribution date of the shares already held (total: EUR 12.3 billion; previous year: EUR 6.8 billion)
• Cash flows from operating activities in the Automotive Division amount to EUR 11.9 billion (EUR 12.4 billion); ratio of investments in property, plant and equipment (capex) to sales revenue is 4.6 percent (4.1 percent)
• Net liquidity in the Automotive Division following the full integration of Porsche and the acquisition of Ducati amounts to EUR 9.2 billion (June 30, 2012: EUR 14.9 billion)
• Strong demand for Group models worldwide:
• At 6.9 million vehicles, Group deliveries to customers were up 11.1 percent year-on-year
• Continued high level of demand for Group vehicles in all key markets; global share of passenger car market (including Porsche) increases to 12.6 percent (12.3 percent)
• Volkswagen Passenger Cars celebrates world premiere of the new Golf in Berlin; studies of the new Golf BlueMotion and the new Golf GTI debut at the Paris International Motor Show
• Audi A3 Sportback and crosslane coupe concept car are the highlights of the brand's lineup in Paris
• SKODA Rapid is launched in Europe
• SEAT debuts the new versions of the Leon and the Toledo
• Porsche Panamera Sport Turismo concept car thrills motor show visitors
• Bentley attracts attention with the GT3 motorsport model; compelling redesign for Lamborghini Gallardo
• Volkswagen Commercial Vehicles showcases large range of variants at the IAA Commercial Vehicles in Hanover
• Scania presents its innovative Euro 6 engine range in Hanover
• MAN celebrates the launch of the new member of its TG family of trucks with efficient Euro 6 engines

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January-September	2012	2011	+/- (%)
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Volkswagen Group:

Deliveries to customers	'000 units	6,855	6,170	+ 11.1
Vehicle sales	'000 units	6,978	6,200	+ 12.5
Production	'000 units	6,974	6,301	+ 10.7
Employees	Sept. 30/Dec. 31	549,294	501,956	+ 9.4
Sales revenue	EUR million	144,226	116,279	+ 24.0
Operating profit	EUR million	8,835	8,977	- 1.6
Profit before tax	EUR million	22,956	16,637	+ 38.0
Profit after tax	EUR million	20,155	13,642	+ 47.7

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

Cash flows from operating
activities	EUR million	11,935	12,418	- 3.9
Cash flows from investing
activities attributable to
operating activities*)	EUR million	11,331	8,605	+ 31.7
Net liquidity at Sept. 30	EUR million	9,215	21,161	- 56.5
Net liquidity at Sept. 30/Dec. 31	EUR million	9,215	16,951	- 45.6
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*) Excluding acquisition and disposal of equity investments: EUR 7,408 million (previous year: EUR 5,265 million).

The Volkswagen Group's main competitive advantages are its multibrand strategy, a range of vehicles that covers almost all segments from subcompact cars to heavy trucks and its growing presence in all major regions of the world, together with its wide range of financial services. Thanks to our expertise in technology and design, we have a diverse, attractive and environmentally friendly portfolio of products that meets all customer desires and needs. This has become even more attractive thanks to the integration of Porsche, with its offering of exclusive sports cars. In the remaining months of 2012, the Volkswagen Group's brands will again launch fascinating new models and so help further expand our strong position in the global markets. As a result, we expect to increase deliveries to customers year-on-year. 2012 will be dominated by the start of production for new, high-volume models as part of the renewal of our product range and the need to convert our plant and equipment for use with the Modular Transverse Toolkit. The modular toolkit system, which is being continuously updated, will have an increasingly positive effect on the Group's cost structure in the future.

The Volkswagen Group's 2012 sales revenue will exceed the prior-year figure. This will also be a result of the consolidation of MAN SE as of November 9, 2011; the write-downs that will be required for purchase price allocation mean that no positive earnings contribution is expected. The increase in sales revenue attributable to the consolidation of Porsche effective August 1, 2012 is expected to be low due to consolidation effects. The high initial depreciation and amortization expense from purchase price allocation is expected to largely offset Porsche's contribution to earnings in operating profit for the fiscal year.

Our goal for operating profit is to match the 2011 level. Positive effects from our attractive model range and strong market position will be offset in part by increasingly stiff competition in a challenging market environment, especially in certain European countries. Disciplined cost and investment management and the continuous optimization of our processes remain core components of our Strategy 2018.

Wolfsburg, October 24, 2012

VOLKSWAGEN AKTIENGESELLSCHAFT - 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 in particular to sterling, the US dollar, Chinese renminbi, the Swiss franc, Japanese yen, Swedish krona, Russian ruble and Australian dollar. In addition, expected business development may vary if the assessments of value-enhancing factors and risks presented in the 2011 Annual Report develop in a way other than we are currently expecting, or additional risks or other factors emerge that adversely affect the development of our business.

24.10.2012 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
	Germany
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:	QRT
LSE Ticker:	VKW
Sequence Number:	1234
Time of Receipt:	Oct 24, 2012 09:39:44
End of Announcement	DGAP News-Service

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