Income Statement. January - December 2012 *) % 2013 % million

(1)

(2)

Volkswagen reports successful fiscal year 2013 in a challenging environment:

- Sales revenue rises by 2.2% to €197.0 billion

- Operating profit exceeds record prior-year level at €11.7 billion

- 14.5% return on investment in the Automotive Division above 9% minimum required rate of return

Liquidity position shows financial strength and solidity on the growth trajectory:

- €16.9 billion net liquidity in the Automotive Division

- Successful placement of mandatory convertible note (€1.2 billion) and hybrid notes (€2.0 billion)

- Dividend proposal for fiscal year 2013: €4.00 per ordinary share and €4.06 per preferred share

Ongoing implementation of strategic growth and investment program:

- Integrated Commercial Vehicles Group: conclusion of a control and profit and loss transfer agreement with

MAN SE; tender offer for all outside shareholders of Scania in 2014

- Unique brand portfolio and attractive product range

- Systematic implementation of Strategy 2018

(3)

€ million

Income Statement

January - December

2012

*)

_%

₂₀₁₃

_%

Sales revenue

192,676

100.0 197,007

100.0 Cost of sales

- 157,522

- 81.8

- 161,407

- 81.9

Gross profit

35 ,154

18.2 35,600

18.1 Distribution expenses

- 18,850

- 9.8

- 19,655

- 10.0

Administrative expenses

- 6,220

- 3.2

- 6,888

- 3.5

Net other operating income

1,415

0.7 2,613

1.3 Operating profit

11,498

6.0 11,671

5.9 Financial result

13,989

7.3

757

0.4 Profit before tax

25 ,487

13.2 12,428

6.3 Income tax expense

- 3,606

- 1.9

- 3,283

- 1.7

Profit after tax

21 ,881

11.4 9,145

4.6 Noncontrolling interests

169

0.1

52

0.0 Profit attributable to Volkswagen AG hybrid capital investors

-

27

0.0 Profit attributable to Volkswagen AG shareholders

21,712

11.3 9,066

4.6

(4)

Operating Profit - by Brand and Business Field

January - December

€ million

2012

1)

₂₀₁₃

_absolute

_{in %}

1)_{Prior-year figures adjusted to reflect application of IAS 19R.}2)_{Including financial services; Porsche as from August 1, 2012.}3) _{Mainly intragroup items recognized in profit or loss, in particular from the elimination of}

intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of the purchase price allocation for Scania, Porsche Holding Salzburg, MAN and Porsche (as from August 2012).

4)_{Volkswagen Commercial Vehicles has been reported within the Automotive Division under Commercial Vehicles since January 1, 2013; the prior-year figures have been adjusted.}

3)

Volkswagen Passenger Cars

3,643

2,894

- 749

- 20.6

Audi

5,365

5,030

- 335

- 6.2

ŠKODA

712

522 - 190

- 26.7

SEAT

- 156

- 152

4

2.9 Bentley

100

168

67

66.9 Porsche

2)

₉₄₃

_2,579

_1,636

_x

Volkswagen Commercial Vehicles

421

448

27

6.4 Scania

2)

₉₃₀

₉₇₄

₄₄

_4.7

MAN

2)

₈₁₃

₃₁₉

_{- 494}

_{- 60.7}

Other

3)

_{- 2,682}

_{- 2,725}

_{- 43}

_{- 1.6}

Volkswagen Financial Services

1,408

1,614

205

14.6 Volkswagen Group

11,498

11,671

173

1.5 Automotive Division

9,913

9,807

- 106

- 1.1

of which: Passenger Cars

4)

_8,968

_9,013

₄₆

_0.5

Commercial Vehicles/Power Engineering

4)

₉₄₅

₇₉₄

_{- 151}

_{- 16.0}

Financial Services Division

1,585

1,863

278

17.6 Change

(5)

11.5

11.7 + 1.5

- 1.1

_{- 0.2}

2012

1)

_Volume/

Mix/Prices

Exchange

rates

Product

costs

Fixed costs

Financial

Services

Division

3)

2013

+ 0.2

- 0.5

€ billion

Change in Operating Profit

+ 0.3

1) _{Prior-year figures adjusted to reflect application of IAS 19R.}2) _{Including purchase price allocations, without financial services.}3) _{Including purchase price allocations.}

Commercial

Vehicles/

Power

Engineering

2)

Passenger Cars

2)

(6)

*)_{Including proportionate inclusion of the Chinese joint ventures (incl. the sales and component companies) and allocation of consolidation adjustments between the Automotive and} Financial Services divisions. Prior-year figures adjusted to reflect application of IAS 19R.

Automotive Division Return on Investment after Tax

*)

16.6%

14.5%

2012

2013

(7)

*)_{Profit before tax as a percentage of average equity. Prior-year figures adjusted to reflect application of IAS 19R.}

Financial Services Division Return on Equity

*)

13.1%

14.3%

(8)

26.5

27.8 2012

2013

37.9

39.8 2012

2013

10.4

10.5 2012

2013

Automotive

Division

%

Volkswagen

Group

%

Financial Services

Division

%

Equity Ratio by Division

*)

(9)

Gross cash flow

15,774

18,688

2,914

18.5 +

Change in working capital

458 1,925

1,467

x

=

Cash flows from operating activities

16,232

20,612

4,381

27.0 Cash flows from investing activities attributable

- 16,455

- 16,199

255

1.6 to operating activities

of which:

• Acquisition of property, plant and equipment

- 10,271

- 11,040

- 770

- 7.5

- as % of sales revenue

5.9

6.3 -

0.4

• Additions to capitalized development costs

- 2,615

- 4,021

- 1,407

- 53.8

• Acquisition/disposal of equity investments

- 3,927

- 1,702

2,225

56.7 Net cash flow

- 223

4,413

4,636

x

Mandatory convertible notes/Hybrid notes

2,048

3,067

1,018

49.7 Capital transactions with noncontrolling interests

- 2,101

0 2,101

x

Net liquidity at December 31

10,573

16,869

6,295

59.5

Automotive Division Net Liquidity

1)

January - December

Change

1) _{Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.}2)_{Prior-year figures adjusted to reflect application of IAS 19R.} 3) _{Percentage points.}

3)

(10)

1)_Basic.2) _{Profit attributable to Volkswagen AG shareholders. Prior-year figures adjusted to reflect application of IAS 19R.} 3) _{Prior-year figures adjusted to reflect application of IAS 33.26 and IAS 19R.}