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12

fascinating brands

10.14 million
deliveries in 2014

592,586
employees worldwide

153

Factbook 2015

countries

2014 was an unexpectedly difficult but ultimately good year for the Volkswagen Group. Political and economic uncertainty
dominated the situation in many regions of the world, and this also had far-reaching consequences for the automotive
industry. Despite these headwinds, we successfully kept your company on a strong, stable trajectory.
This is underscored by the fact that we reached a major strategic milestone over 10 million deliveries four years
earlier than expected. This is underscored by record sales revenue of 202.5 billion and operating profit of 12.7 billion.
And this is underscored by the increase in the operating margin to 6.3% at the upper end of the forecast range.
At 14.8 billion, we also lifted profit before tax year-on-year. We again posted a record equity-accounted profit from our
Chinese joint ventures.
Our company continues to offer outstanding prospects because we stand for innovation, competitiveness and financial
strength. This is another reason why I am convinced that your confidence in and support for the Volkswagen Group and
its team will pay off. In every respect.
Sincerely,

We stand for strength, reliability


and long-term success even
under less favorable conditions.

Prof. Dr. Martin Winterkorn


Chairman of the Board of Management Volkswagen Aktiengesellschaft

Content
Volkswagen at a Glance

Our Brands & Products

10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

Shareholder Information

84

Investor Relations Team

92

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

Volkswagen at a glance
The Volkswagen Group
with its headquarters in Wolfsburg is one of the
worlds leading automobile manufacturers and the
largest carmaker in Europe.
The Group operates 118 production plants. Every
Headquarters
Wolfsburg

Dec. 1945: start of


series production

12 brands from 7
European countries

592,586
employees

118 production plants


worldwide

weekday, more than 590,000 employees worldwide


produce some 40,600 vehicles, and work in vehiclerelated
The

services

or

Volkswagen

other

Group

fields
sells

its

of

business.

vehicles

in

153 countries.
In 2014, the Group increased the number of vehicles
delivered

to

customers

to

10.14

million

(2013: 9.73 million), corresponding to an increase in


sales of 4.2 percent. The Groups market share of
40,626 vehicles
a day

Volkswagen
at a Glance

Around 335 models

Our Brands &


Products

10.137 m deliveries to
customers

Markets &
Sales

Financials &
Outlook

Active in 153
countries

Strategy
2018

Profit after tax:


11.1 billion

Excellence in
Production

the world passenger car market was 12.9 percent


(12.8 percent).

Focus
on R&D

Shareholder
Information

Investor Relations
Team

Volkswagen history: from national leader to global champion


1904
1934

1947
1953

1945
1949
The idea of a
peoples car is born
in the early 20th
century. Ferdinand
Porsche is finally
commissioned to build
the Volkswagen

Volkswagen goes
international with the
first exported car in
1947 and the opening
of the first abroad
sales company in
Canada and the first
production plant in
Brazil

The British military


government takes
over trusteeship.
Their quality policy,
customer service,
sales network and
export orientation lay
the foundation for the
companys success

1954

1938

Start of
construction of the
Volkswagen plant in
Wolfsburg

Volkswagen
at a Glance

1939

1985
1991

1955

Our Brands &


Products

Series production
of the Beetle begins
with 55 vehicles

Markets &
Sales

1960
1961
Financials &
Outlook

2012
2014

Volkswagen
listed at stock
exchange and
issues shares for
the first time in
1961

Strategy
2018

1970
1975

Acquisition of the
brands SEAT (1985),
KODA (1991), Bugatti,
Bentley, Lamborghini
(1998) and Scania (2008)

Establishment of
Chinese joint
ventures creates basis
for future success:
Shanghai Volkswagen
(1985) and FAWVolkswagen (1991)

Stock company & new models

Automation of
Production

Forced labor and


production of
armaments during the
Second World War

1945

The Auto-Union
GmbH (later Audi)
is transferred into
the ownership of
Volkswagen

The one
millionth
Volkswagen is
produced

Internationalization & mass production

The beginnings

1986
2008

1965

The globalized automobile group

Introduction of the
new models Passat,
Golf and Polo leads
Volkswagen out of
critical situation after
oil crisis and
recession

1985
Excellence in
Production

Integration of
Porsche (2012) and
MAN (2013) as well
as the takeover of
Ducati; successful
offer for all
outstanding Scania
shares (2014)

1994
1995

Foundation of
Volkswagen
Financial Services
AG and Volkswagen
Commercial Vehicles
brand

Volkswagen
changes its name
to Volkswagen AG

Focus
on R&D

2014
Shareholder
Information

Volkswagen
achieves more than
ten million deliveries
in one year for the
first time

Investor Relations
Team

Volkswagen Group leveraging the power of three strong pillars


The Volkswagen Group consists of two divisions: the
Automotive Division, including the Passenger Cars and
Automotive Division
Commercial Vehicles /
Power Engineering

Passenger Cars

Commercial Vehicles / Power Engineering Business Areas,

Financial Services Division

and the Financial Services Division.

Volkswagen Financial Services

The Passenger Cars Business Area is centered on the


development of vehicles and engines as well as the production
Europe / Asia-Pacific / North and South
America

and sale of passenger cars.


The Commercial Vehicles / Power Engineering Business
Area deals with the production and sale of trucks and busses,

Financial Services

and business comprising genuine parts, large-bore diesel

USA / Canada / Spain / Argentina

engines,

special

gear

units,

propulsion

components and testing systems.

Scania Financial Services


Porsche Holding Financial Services
Porsche Financial Services

Remaining companies

turbomachinery,

The Financial Services Divisions portfolio of services


combines dealer and customer financing, leasing, banking and
insurance activities and fleet management.

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

The board of management of Volkswagen Aktiengesellschaft


(from left to right)
Prof. Rupert Stadler
Chairman of the Board of Management
of AUDI AG
Christian Klingler
Sales and Marketing
Prof. Dr. rer. pol. Horst Neumann
Human Resources and Organization
Prof. Dr. rer. pol. Dr.-Ing.
E. h. Jochem Heizmann
China
Dr. rer. pol. h. c. Francisco Javier
Garcia Sanz
Procurement
Prof. Dr. Dr. h.c. mult. Martin Winterkorn
Chairman of the Board of Management of
Volkswagen Aktiengesellschaft
Research and Development
Hans Dieter Ptsch
Finance and Controlling
Dr. h. c. Leif stling
Commercial Vehicles (until February 2015)

Andreas Renschler
(Andreas Renschler became a member of the
Board of Management of Volkswagen AG on
February 1, 2015. He is responsible for
Commercial Vehicles)
Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

Volkswagen Touran

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

Content
Volkswagen at a Glance

Our Brands & Products

10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

Shareholder Information

84

Investor Relations Team

92

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

Our brands and products a success story

Volkswagen is the one of the most successful


multiband group in the automotive industry.
The Group consists of twelve brands from
seven European countries: Volkswagen
Passenger
Bentley,

Cars,
Bugatti,

Audi,

SEAT,

Lamborghini,

KODA,
Porsche,

Ducati, Volkswagen Commercial Vehicles,


Scania and MAN.
Each brand has its own character and
operates as an independent entity in the
market to better satisfy the specific needs of
the different segments and countries.

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

10

Our huge product range satisfies all major customer groups


Hatchback

Sedan

Estate

MPV

SUV

Coup

Convertible

World 2015

Roadster

City Van /
Transporter

Pick-Up

A0

A00
New product launch 2015

Segments > 1m cars


Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

11

Volkswagen Das Auto


MOST PRODUCED IN 2014
The Volkswagen Passenger Cars brand is one of the worlds

DELIVERIES BY MARKETS 2014

Golf

Europe/Remaining markets

31.0%

North America

9.6%

South America

10.8%

Asia-Pacific

48.6%

most successful volume carmakers. The Groups core brand


maintains facilities in 14 countries, producing vehicles for

1,011,124

customers in more than 150 nations.


Volkswagen is Das Auto. The brand delivers innovative,
responsible mobility to people worldwide.

Prof. Dr. Martin Winterkorn

CEO

2014

Jetta/Sagitar

2013

KEY FIGURES
2014

2013

%
926,277

Deliveries (000 units)

6,119

6,022

+1.6

Vehicle sales (000 units)

4,583

4,704

-2.6

Production (000 units)

6,156

6,017

+2.3

Sales revenue ( million)

99,764

99,397

+0.4

Operating profit ( million)

2,476

2,894

-14.4

2.5

2.9

as % of sales revenue

Volkswagen
at a Glance

6.1m

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

2012
2011
2010
2009

Polo

2008
753,754

Strategy
2018

Excellence in
Production

Focus
on R&D

2007

3.7m

Shareholder
Information

Investor Relations
Team

12

Audi Vorsprung durch Technik


MOST PRODUCED IN 2014

DELIVERIES BY MARKETS 2014

Audi is one of the worlds leading manufacturers of premium


A3

cars and has been part of the Volkswagen Group since

Europe/Remaining markets

47.0%

North America

12.6%

South America

1.3%

Asia-Pacific

39.1%

1965. Today, the company makes vehicles ranging from


compact to top-of-the range models.

351,526

Audi is Vorsprung durch Technik. Lightweight construction,


efficient drivetrains, connectivity and innovative assistance
systems - Audi clothes its progressive technologies in clear

Rupert Stadler

CEO

2014

A4

lines and sporty design.

2013

KEY FIGURES
2014

2013

%
328,465

Deliveries (000 units)

1,744

1,578

+10.5

Vehicle sales (000 units)

1,444

1,349

+7.0

Production (000 units)

1,803

1,608

+12.2

Sales revenue ( million)

53,787

49,880

+7.8

Operating profit ( million)

5,150

5,030

+2.4

9.6

10.1

as % of sales revenue

Volkswagen
at a Glance

Our Brands &


Products

1.7m

Markets &
Sales

Financials &
Outlook

2012
2011
2010
2009

A6

2008
307,693

Strategy
2018

Excellence in
Production

Focus
on R&D

2007

0.96m

Shareholder
Information

Investor Relations
Team

13

KODA simply clever


MOST PRODUCED IN 2014

DELIVERIES BY MARKETS 2014

Octavia

KODA is one of the worlds longest-standing carmakers.

Europe/Remaining markets

70.6%

North America

0.0%

South America

0.1%

Asia-Pacific

29.3%

It became a member of the Volkswagen Group in 1991.


397,433

Clever solutions for everyday car journeys that is KODAs


aspiration.

The

traditional

Czech

brand

combines

functionality and everyday practicality with high quality and


timeless design.

Prof. Dr. Winfried Vahland

CEO

2013

KEY FIGURES
2014

2013

%
228,175

1,037

921

+12.7

796

719

+10.8

1,050

932

+12.6

11,758

10,324

+13.9

Operating profit ( million)

817

522

+56.5

as % of sales revenue

7.0

5.1

Deliveries (000 units)


Vehicle sales (000 units)
Production (000 units)
Sales revenue ( million)

Volkswagen
at a Glance

1.04m

2014

Rapid

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

2012
2011
2010
2009

Fabia

2008
162,954

Strategy
2018

Excellence in
Production

Focus
on R&D

2007

0.63m

Shareholder
Information

Investor Relations
Team

14

SEAT technology to enjoy


MOST PRODUCED IN 2014

DELIVERIES BY MARKETS 2014

SEAT looks back on a history spanning over 60 years.


Leon

A member of the Volkswagen Group since 1986, the


Spanish

carmaker

today

designs,

develops

Europe/Remaining markets

94.4%

North America

5.5%

South America

0.1%

Asia-Pacific

0.0%

and

manufactures cars and components at its production sites in

157,087

Barcelona, Martorell and Prat.


SEAT combines temperament and precision. The Spanish
brands vehicles radiate sheer enjoyment and impress with

Jrgen Stackmann

CEO

their technological perfection.

2013

KEY FIGURES
2014

2013

%
153,633

Deliveries (000 units)

391

355

+10.0

Vehicle sales (000 units)

501

459

+9.2

Production (000 units)

395

353

+11.9

Sales revenue ( million)

7,699

6,874

+12.0

Operating profit ( million)

-127

-152

+16.3

as % of sales revenue

-1.6

-2.2

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

0.39m

2014

Ibiza

Financials &
Outlook

2012
2011
2010
2009

Altea/Toledo

2008
35,683

Strategy
2018

Excellence in
Production

2007

Focus
on R&D

0.43m

Shareholder
Information

Investor Relations
Team

15

Bentley
DELIVERIES BY MARKETS 2014

MOST PRODUCED IN 2014


The brand is part of the Group since 1998. For more than 75

Flying Spur

Europe/Remaining markets

37.6%

North America

28.8%

South America

0.1%

Asia-Pacific

33.5%

years, Bentleys headquarters have been based in Crewe,


where the luxury cars are designed and manufactured.

4,556

Individual luxury, handcrafted perfection and powerful


performance the Bentley experience, every time. Built in
Crewe and driven across the world.

Wolfgang Drheimer

2013

KEY FIGURES
2014

2013

Deliveries (units)

11,020

10,120

+8.9

Vehicle sales (units)

10,930

10,564

+3.5

Production (units)

11,033

10,876

+1.4

1,746

1,679

+4.0

Operating profit ( million)

170

168

+1.2

as % of sales revenue

9.7

10.0

Sales revenue ( million)

Volkswagen
at a Glance

11,020

2014

Continental GT Coup

CEO

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

3,442

2012
2011
2010

Continental GT Convertible

2009
2008

2,151

2007

Strategy
2018

Excellence in
Production

Focus
on R&D

10,014

Shareholder
Information

Investor Relations
Team

16

Porsche
DELIVERIES BY MARKETS 2014

MOST PRODUCED IN 2014


Dr. Ing. h.c. F. Porsche AG is one of most successful sports

Cayenne

car manufacturer in the world and has been part of the

Europe/Remaining markets

37.3%

North America

27.9%

South America

1.5%

Asia-Pacific

33.3%

Volkswagen Group since 2012. Today, Porsche maintains


production sites in Stuttgart-Zuffenhausen and Leipzig.

66,005

Porsches mission is to build sports cars that go full throttle


on the circuit but also hold their own on everyday journeys.
Matthias Mller

German engineering brilliance creates the most efficient

CEO

KEY FIGURES

2014

Macan

sports cars in the world.


2014

2013

0.19m

2013

%
59,363

Deliveries (000 units)

190

162

+17.1

Vehicle sales (000 units)

187

155

+20.7

Production (000 units)

203

166

+22.5

Sales revenue ( million)

17,205

14,326

+20.1

Operating profit ( million)

2,718

2,579

+5.4

as % of sales revenue

15.8

18.0

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

2012

2011

911 Coup/Convertible

Strategy
2018

Excellence in
Production

0.1m

2010

31,590

Focus
on R&D

Shareholder
Information

Investor Relations
Team

17

Volkswagen Commercial Vehicles


MOST PRODUCED IN 2014

DELIVERIES BY MARKETS 2014

The brand produces commercial vehicles at its four plants in


Caravelle/Multivan, Kombi

Hanover, Pozna, Anchieta and Pacheco.

Europe/Remaining markets

84.4%

North America

1.3%

South America

9.2%

Asia-Pacific

5.1%

Volkswagen Commercial Vehicles from the California


94,336

camper van to the Caddy urban delivery van and the Crafter
delivery van the brands light commercial vehicles offer
highly flexible and cost-effective performance for everyday
driving.

Dr. Eckard Scholz

CEO

2013

KEY FIGURES
2014

2013

2012

83,947
Deliveries (000 units)

447

462

-3.4

Vehicle sales (000 units)

442

436

+1.5

Production (000 units)

396

418

-5.1

9,577

9,370

+2.2

Operating profit ( million)

504

448

+12.5

as % of sales revenue

5.3

4.8

Sales revenue ( million)

Volkswagen
at a Glance

0.45m

2014

Transporter

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

2011
2010
2009

Caddy Kombi

2008
76,564

Strategy
2018

Excellence in
Production

2007

Focus
on R&D

0.43m

Shareholder
Information

Investor Relations
Team

18

Scania
Scania was one of the first companies to make commercial
PRODUCTION IN 2014

vehicles and has been a member of the Volkswagen Group


since 2008. The Swedish brand builds its products at nine

DELIVERIES BY MARKETS 2014

Trucks

Europe/Remaining markets

67.7%

North America

1.1%

South America

22.3%

Asia-Pacific

8.9%

production sites in six countries.


Scania trucks, buses and engines offer maximum efficiency
and

absolute

commercial

Martin Lundstedt

CEO

reliability.

vehicle

The

segment

premium
stands

brand
for

in

high

75,287

the
cost

effectiveness and comprehensive service.

KEY FIGURES
2014

2013

Orders received (000 units)

83

81

+2.5

Deliveries (000 units)

80

80

-0.8

Vehicle sales (000 units)

80

80

-0.8

Production (000 units)

82

83

-0.8

10,381

10,360

+0.2

Operating profit ( million)

955

974

-1.9

as % of sales revenue

9.2

9.4

Sales revenue ( million)

Volkswagen
at a Glance

2014

Buses

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

80k

2013
6,921

2012
2011
2010
2009
2008
2007

Strategy
2018

Excellence in
Production

Focus
on R&D

76k

Shareholder
Information

Investor Relations
Team

19

MAN
PRODUCTION IN 2014

The MAN Group is one of Europes leading industrial players


in transport-related engineering and a supplier of trucks,

DELIVERIES BY MARKETS 2014

Trucks

Europe/Remaining markets

56.1%

North America

1.2%

South America

38.3%

Asia-Pacific

4.4%

buses, diesel engines, turbomachinery, and special gear


units.

104,412

Technological expertise in transportation and energy is a


characteristic of all MAN products, from trucks to buses, from

Dr. Georg Pachta-Reyhofen

CEO

large-bore engines to turbomachinery.

KEY FIGURES
2014

2013

Orders received (000 units)

122

138

-11.6

Deliveries (000 units)

120

140

-14.4

Vehicle sales (000 units)

120

140

-14.4

Production (000 units)

116

141

-17.8

14,286

15,861

-9.9

Operating profit ( million)

384

319

+20.2

as % of sales revenue

2.7

2.0

Sales revenue ( million)

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

120,000

2014

Buses

2013

Strategy
2018

Excellence in
Production

121,767

2012

11,660

Focus
on R&D

Shareholder
Information

Investor Relations
Team

20

Lamborghini

Bugatti
Stephan
Winkelmann
CEO

LAMBORGHINI

Wolfgang
Drheimer
CEO

BUGATTI

Lamborghini stands for extreme and uncompromising super sports cars of the best

Bugatti has always been the epitome of exclusivity, luxury, elegance, style and

Italian tradition.

extraordinary design, driven by a great passion for automobiles.

Lamborghini redefined the future of its super sports cars and decided to focus more

Unique visions, the strong legacy of legendary sports cars that date back to the year

on weight reduction than on top-speed. Extensive use of carbon fibre, even at a

1901, and high-precision engineering in development, construction, and manufacture

structural level, allows Lamborghini to be at the forefront of development techniques.

distinguish this outstanding automotive brand.

The successor of the Gallardo, the new Lamborghini Huracn LP 610-4, made its

Bugatti confirmed its unique position by launching the Veyron Grand Sport Vitesse,

global debut at the Geneva Motor Show 2014 and is currently receiving overwhelming

the fastest roadster of all time with a top speed of 431 km/h.

reactions from markets and customers all over the world.

Bugatti is more than just a brand Bugatti is a legend. Its super sports cars epitomize

An uncompromisingly sporty identity, extreme design, ultimate performance

its quest for the perfect synthesis of art and technology.

Lamborghini continually rewrites automotive history with super sports cars such as the
new Huracn.
AVENTADOR

Volkswagen
at a Glance

VEYRON

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

21

Volkswagen Financial Services the key to mobility1)


KEY FIGURES
(in million)

2014

2013

Total Assets

137,438

115,067

+19.4

Receivables

93,679

80,070

+17.0

Direct Banking Deposits

23,774

21,285

+11.7

Equity

15,184

11,582

+31.1

1,702

1,614

+5.5

Operating profit

Volkswagen Financial Services offers tailor-made products and


services spanning all vehicle segments and representing the key
to mobility for many of the Groups customers worldwide.
It is the largest automotive financial services provider in Europe
presently employing more than 12,821 employees worldwide, of
Frank Witter

which 5,928 work in Germany.

CEO

Volkswagen Financial Services offers financial services for more


than 60 years in close cooperation with the Volkswagen Group
brands in 51 countries worldwide.

CONTINUOUS PORTFOLIO GROWTH (CONTRACTS 000)


The portfolio includes dealer and customer financing, leasing,

2,169
1,336

1,964
1,505

2,148
1,508

3,097

3,163

3,567

Financing

Volkswagen
at a Glance

2,246
1,524

2,691

3,712

3,930

Leasing

Our Brands &


Products

1,623

3,281

3,796

1,808

1,983

4,551

4,946

banking and insurance activities, fleet management and mobility

4,549
2,274

Total
Portfolio
12,383

5,560

Insurance / Services

Markets &
Sales

solutions.

All shown figures show VW Financial Services as of 31 December 2014, excluding financial service
activities of Scania, Porsche AG and Porsche Holding Salzburg

1)

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

22

New group models 2015 a strong basis for profitable growth


Global Roll-Out

Highlights

Highly Efficient Powertrains

Touran, Passat Alltrack, Tiguan,


Lamando, Santana Derivative

Passat, Touareg, Golf (Brazil)

Q7, A4, TT Roadster

TT Coup, Q3 (US),
A3 Sedan (Brazil), A6L (China)

Fabia Combi, Superb Sedan


& Superb Combi

Fabia, Fabia (China),


Superb Sedan (China)

Ibiza

Cayenne

Passat GTE (PHEV),


Jetta Hybrid
Golf TSI BlueMotion
Q7 TDI e-tron

911
Huracn Spyder
Continental GT,
Continental GT Convertible
T6 Family Caddy

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

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Team

23

Audi R8

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

24

Content
Volkswagen at a Glance

Our Brands & Products

10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

Shareholder Information

84

Investor Relations Team

92

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

25

Markets & sales - in 2014 the Volkswagen Group delivered more than
10 million vehicles for the first time, ranking 2nd world wide
Deliveries (million units)

Change vs. 2013

Toyota

10.23

Volkswagen Group

10.14

GM

1)

Renault-Nissan

2)

9.92
8.47

Hyundai-Kia
Ford
Honda

7.0%

2.53

BMW

7.7%

2.12

Mazda

7.9%

1.38

Dongfeng 4)
4)

Mitsubishi
4)

Tata

6.6%

1.19

0.0%

1.15

18.1%

1.08

3.7%

1.04

20.4%

0.97

incl. SAIC-GM-Wuling (1,788,000 units)


Volkswagen
at a Glance

4.3%

2.88

Daimler

1)

4.7%

2.94

Suzuki

BAIC

7.3%

4.36

PSA

Changan

-0.1%

4.75
3)

2)

-9.4%

incl. Lada (448,000 units)

Our Brands &


Products

2.1%
4.7%

6.32

Fiat-Chrysler

4.2%
2.5%

7.71
3)

2.5%

3)

Markets &
Sales

wholesales

4)

excl. foreign JV partner brands; Source: company data


Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

26

Our brands once again proved their attraction to customers


Deliveries to customers in000 units

12,000
10,000

+4.2%
9,731

January December 2013


January December 2014

1)

Passenger Cars

10,137

+1.6%

8,000

2)

6,022 6,119

6,000
4,000

+10.5%

2,000

1,575 1,741

+12.7%
921

1,037

+10.0%
355

391

+17.1%
162

190

+8.9%
10

11

0
Volkswagen
Group
1) Incl.
2)

Volkswagen Commercial Vehicles, Scania and MAN; 4.9% excl. Volkswagen Commercial Vehicles, Scania and MAN.

The Saveiro model, previously Volkswagen Commercial Vehicles, is reported in the Volkswagen Passenger Cars brand retrospectively as of January 1, 2013.
Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

27

Volkswagen Group truck and bus deliveries


Deliveries to customers in000 units

January December 2013


January December 2014

1)

1,200
12,000
1,000
10,000

+4.2%

9,731

10,137

Commercial Vehicles

800
8,000
2)

-3.4%

600
600

462

447

400
400

-14.4%

140

200
200
00

Volkswagen
Group

-0.8%

120

80

80

3)

1) Incl.
2)

Volkswagen Commercial Vehicles, Scania and MAN; 4.9% excl. Volkswagen Commercial Vehicles, Scania and MAN.
The Saveiro model, previously Volkswagen Commercial Vehicles, is reported in the Volkswagen Passenger Cars brand retrospectively as of January 1, 2013. 3) MAN incl. MAN Latin America Trucks and Buses GVW > 5t
Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

28

Overview world car markets and Volkswagen Group


Global Presence

Key Markets

With its brands, the Volkswagen Group has a presence in all relevant
automotive markets around the world.
Western Europe, China, Brazil, the USA, Russia and Mexico are currently the key
sales markets for the Group.
The Group maintained its strong competitive position in 2014 thanks to its wide
range of attractive and environmentally friendly models. We recorded an
encouraging increase in demand in many of our key markets.
In 2014, the Volkswagen Group delivered 9,490,921 passenger cars to

Worldwide Deliveries of the Groups most successful models in 2014 (000 units)

customers, exceeding the record prior year level by 4.9%. The market as a whole
only grew by 4.5% in the same period, meaning that the Groups share of the
global market increased to 12.9% (12.8%).
For the first time in a calendar year, Volkswagen Passenger Cars sold more than
6 million vehicles and KODAs sales exceeded 1 million units. Demand for
Volkswagen Group passenger cars grew fastest in the Asia-Pacific region, with
China recording the highest absolute increase.

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Golf

980

Jetta

929

Passat

739

Polo

738

Tiguan

497

Lavida

477

SKODA Octavia

389

Audi A4

328

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

29

Improved segment and market exposure provides stable earnings


Passenger Cars1)
Production

Registrations
11%

3%

18%

52%

12%

2014

7% 1%
36%

12%

36%

8%

43%
7%

42%

39%
12%

8%
12%

2014

2014

54%

2014

31%
21%

6%

44%

2007

31%
16%

33%

14%

2007

7%

6% 3%

12%
4%

2007

7%

3)

2%

46%

16%

2007

9%

1)

Segments

2%

13%

Group
Operating Profit2)

Western Europe

6%
Asia-Pacific

Central & Eastern Europe


North America

43%

14%

Station wagon

SUV

Premium cars

CV, PE3)

South America

Hatchback

Other

Volume cars

VW FS4)

Rest of World

Sedan

Source: Polk; figures excluding Volkswagen Commercial Vehicles, MAN and Scania. Porsche fully consolidated as from 1 August 2012 2) Split of Group Operating Profit excluding Other / Consolidation and PPA
4) VW Financial Services figures do not include financial service activities of Scania, Porsche AG and Porsche Holding Salzburg
Commercial Vehicles / Power Engineering
Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

30

Deep roots and strong market position combined with further


growth potential assures continued profitable growth in China
Strong operational & financial track record

Production network and implementation of MQB

(in bn / million units)


Production capacity
(250 working days)
2014: 3 million
2019: >5 million

Changchun

Urumqi

2.8

Beijing

Chengdu

(2017/18)

(2017/18)

1.4

Nanjing Yizheng
Shanghai
Changsha
(2015)
Ningbo
Foshan

1.0
0.4 0.3

2008

Significant extension of product portfolio

2014:

2018e:

25

Import

Total

57

82

2.8

2.6

0.8

0.4

2009

0.8

2010

3.0

2.0

1.9
1.2

2011

Dividends paid
to Volkswagen
AG
Deliveries to
customers

2012

2013

2014

Continuous expansion of dealer network


>3,600
2,395

2,654

Others
KODA
Audi

>40

>65

Volkswagen

>105
2013

Volkswagen
at a Glance

3.7

1.9

Proportionate
Operating Profit

5.2
4.3

2.3

Qingdao

Tianjin

Existing production site


MQB production site by 2016
Planned MQB production site

Locally produced

3.7
3.3

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

2014

2018e

Focus
on R&D

Shareholder
Information

Investor Relations
Team

31

USA extending the business


Expanding local footprint

Strong commitment to targets in the U.S. market


Deliveries in 000 units by brands
1,000
800
600
400
200
0

Herndon Headquarters

Electronics
Research
Laboratory

Chattanooga Plant
Atlanta Headquarters

Silao Plant (engines)


Puebla Plant

San Jos Chiapa Plant1) (SOP 2016)


Volkswagen

Upgrade/expansion of portfolio
Introduction of
the new Golf

US Passat
facelift

Tiguan LWB

2014
Jetta
facelift

2015

Segment structure 2014

-10.0%
+15.2%

2016
Imported
vehicles4)

B-SUV

1)

Production of global volumes of new Audi Q5 from 2016

4)

Imported and locally produced vehicles in % of total deliveries (Volkswagen Passenger cars)
Our Brands &
Products

Other

Deliveries to customers
Jan-Dec 2014 vs. Jan-Dec 2013

61%

Produced
locally4)

Volkswagen
at a Glance

Porsche 2)

LCV segment remains a large opportunity

2010
39%

Audi

2)

2014
16%
16%

Figures including Porsche as from 1 August 2012

Markets &
Sales

Financials &
Outlook

+11.1%

84%
84%

Total
Market
3)

+5.9%3)
LCVs

Cars

Thereof Passenger Cars +1.8%, Light Commercial Vehicles +10.0%

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

Investor Relations
Team

32

Brazil short-term challenge, mid-term opportunity


Highly localized passenger car production

Deliveries to customers (000 units)


> 1,000

1,200
900
600

So Carlos (engines)

Taubat

Anchieta

300
0

1)

Curitiba

2007

A rapidly changing competitive landscape


Number of automotive companies
in the Brazilian market

2008

2009

2010

2011

2012

2013

2014

2018
Target

Expansion & upgrade of locally produced portfolio


up!

Importers

Other local
producers

Fox family

Saveiro

2014

Golf

Gol

2015

2016

A3 Sedan

Q3

"Big 4" 2)
1980's

1990's

2010

2015e

Source: Anfavea, own research


1)

Audi to start production of A3 Sedan in So Jos dos Pinhais in 2015, Q3 to be produced from 2016

2)

Volkswagen, Fiat, General Motors, Ford


Volkswagen
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Strategy
2018

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33

Key sales markets offer substantial growth opportunities


Market growth 2014 2018 (million units)
bf
3.8
19.5 20.3 20.3
13.6
+4%

14.3

14.9

Central & Eastern


Europe
(incl. Russia)

Western Europe1)

98

China
(incl. HK)

4.4

+51%

5.8
+14%

2012 2014 2016 2018


India

2012 2014 2016 2018

2012 2014 2016 2018

South America2)
Our Brands &
Products

+23%

3.7

2.9

+10%

Volkswagen
at a Glance

26.4 28.6

2012 2014 2016 2018

92

86
5.3

23.1

2012 2014 2016 2018

2012 2014 2016 2018

North America

5.3

+17%

+9%

2012 2014 2016 2018

4.5

3.6

Includes Cyprus and Malta


Includes Central America and Caribbean
Source: IHS Automotive (data status: January 2015), rounded
Note: Market = Cars and LCVs

1)
2)

World
Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

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Team

34

Global passenger car market expected to grow further in 2015


with adverse developments in individual regions
bf
Western
Europe

World

USA

South
America1)

China

Russia

Passenger
car & LCV
market
(2015 growth)
+7.4%
+2.8% +2.7%

GDP

+1.3% +1.6%

+2.4% +2.3%

2014e 2015e

2014a 2015e

+6.5%

(growth p.a.)

2014e 2015e

2014a 2015e

+0.8% -0.1%

+0.6% -4.8%

2014e 2015e

2014a 2015e

Source: IHS Automotive, IHS Economics as of May 2015


1) Includes Central America and Caribbean, excluding Mexico
Volkswagen
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Financials &
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Strategy
2018

Excellence in
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35

Expected market development 2015 by country for trucks > 6t

Western Europe

Russia

Germany

Demand will rise modestly with


economic recovery; pull-forward effects
in 2013 related to Euro 6 emission
standard negatively affected 2014

GDP growth in 2015 expected to

Sanctions and macroeconomic

slightly increase over the year with

development will have continuing

positive effect on truck sales

negative effect in 2015

bf

Brazil

India

Negative macroeconomic development

with adjustment of FINAME-Program


have a significantly negative impact on
Brazilian market

Volkswagen
at a Glance

China

Government change 2014 provides


further investment incentives

Substantial increase in truck sales


expected

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
Production

Sales in China expected to be almost


on the same level as 2014 despite
positive macroeconomic development

Focus
on R&D

Shareholder
Information

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Team

36

KODA Superb

Volkswagen
at a Glance

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Products

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Financials &
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Strategy
2018

Excellence in
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Focus
on R&D

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Information

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37

Content
Volkswagen at a Glance

Our Brands & Products

10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

Shareholder Information

84

Investor Relations Team

92

Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

Excellence in
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Focus
on R&D

Shareholder
Information

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38

Financials and Outlook new records in unit sales, sales revenue


and earnings in fiscal year 2014
Last year put the entire automotive industry to the test. But the Volkswagen Group didnt lose its way despite the tough conditions. We ensured that
2014 was another successful year. In a world full of uncertainties, in an industry characterized by ups and downs, our company therefore represents
something special: solidity and reliability. 2014 is more than just a snapshot in time. Its just the latest chapter in an impressive, sustained success
story.
Hans Dieter Ptsch
Member of the Board of Management, Volkswagen AG
Finance and Controlling

Deliveries to customers

Sales revenue
bn

bn

m units

+ 4.2%
9.73

+ 2.8%

10.14

197.0

bn

+ 8.8%

Profit after tax

Profit before tax

Operating profit

bn

+ 19.0%

+ 21.0%

202.5
11.7

12.7

12.4

14.8
9.1

2013
Volkswagen
at a Glance

2014
Our Brands &
Products

2013
Markets &
Sales

2013

2014
Financials &
Outlook

2014
Strategy
2018

2013
Excellence in
Production

2014
Focus
on R&D

2013
Shareholder
Information

11.1

2014
Investor Relations
Team

39

Volkswagen Group analysis of earnings per share development


(January to December 2014 vs. 2013)
Earnings per share (diluted, in )

Key driving factors for EPS

+ 17%
21.84
18.61

Increase of Group operating profit

Improved at-equity result, mainly due to continued


strong performance of Chinese joint venture
companies

Improved other financial result

Higher minority and hybrid investors interest


in net profit reconciliation

Slightly increased average number of shares


outstanding following issuance of equity capital
and convertibles

18.67

Jan Dec
20131)
Ordinary shares
1)

21.90

Jan Dec
2014
Preferred shares

Prior-year figures adjusted to reflect application of IAS 33.26


Volkswagen
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Our Brands &


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2018

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40

Operating profit growth clearly outperforming volume expansion


mainly due to premium exposure and strong position in China
Operating Profit (incl. proportionate
Operating Profit from China JVs1))

Deliveries to customers
Volkswagen Group
in million units

in billion

+15.7% p.a.

Key drivers for strong operating profit


performance

Strong expanded presence in premium


segment
Porsche integration, above average
growth and margins
Synergies within premium brands
Outperformance of Audi brand

Performance of VW Group in China


Strong market position and growth
momentum, above average margins
Continued investments and at the same
time substantial dividends received

+
+

Expansion of commercial vehicles business


Acquisition of Scania and MAN

17.9
+7.3% p.a.

10.1
6.4

6.2

2007
1)

2014

2007

Increasing contribution from Financial Services


Global expansion
Rising penetration rates

2014

The joint venture companies in China are accounted for using the equity method and recorded an operating profit (proportionate) of 5,182 million in 2014 (294 million in 2007)
Volkswagen
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Strategy
2018

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Focus
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41

Strong performance across our business lines1)


Vehicle sales

Sales revenue

Operating profit

thousand vehicles/ million

2014

2013

2014

2013

2014

2013

Volkswagen Passenger Cars

4,583

4,704

99,764

99,397

2,476

2,894

Audi

1,444

1,349

53,787

49,880

5,150

5,030

KODA

796

719

11,758

10,324

817

522

SEAT

501

459

7,699

6,874

-127

-152

11

11

1,746

1,679

170

168

187

155

17,205

14,326

2,718

2,579

442

436

9,577

9,370

504

448

80

80

10,381

10,360

955

974

120

140

14,286

15,861

384

319

3,506

3,038

Bentley
Porsche

2)

Volkswagen Commercial Vehicles


Scania

2)

3)

MAN

4)

VW China
Other

Volkswagen Financial Services3)


Volkswagen Group
6)

Automotive Division

of which: Passenger Cars


of which: Commercial Vehicles, Power Engineering
Financial Services Division

5)

-1,454

-1,364

-45,885

-40,047

-2,052

-2,725

22,139

18,983

1,702

1,614

10,217

9,728

202,458

197,007

12,697

11,671

10,217

9,728

177,538

175,003

10,780

9,807

9,575

9,071

143,601

140,077

9,835

9,013

642

657

33,937

34,927

945

794

24,920

22,004

1,917

1,863

5)

1) All figures shown are rounded, minor discrepancies may arise from addition of these amounts 2) Incl. financial services 3) MAN Finance International GmbH has been reported within Volkswagen Financial Services since its acquisition
by Financial Services AG as of January 1, 2014. The prior-year figures have not been adjusted 4) Sales revenue of the JVs in China are not included in the Group figures. The Chinese companies are accounted for
using the equity method and recorded an operating profit (proportionate) of 5,182 million (4,296 million) 5) Mainly intragroup items, in particular from elimination of intercompany profits; incl. depreciation and amortization of
identifiable assets as part of the PPA for Scania, Porsche Holding Salzburg, MAN and Porsche 6) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions

Volkswagen
at a Glance

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Products

Markets &
Sales

Financials &
Outlook

Strategy
2018

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on R&D

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42

Automotive Division strong cash generation1)2)


Cash flows from operating activities in the Automotive Division increased by 1.0 billion to 21.6 billion, mainly thanks to the strong operating earnings performance. At 15.5 billion,
the cash outflow from investing activities was 0.7 billion lower than in the previous year. As a consequence the Automotive Divisions net cash flow improved by 1.7 billion to 6.1
billion in 2014.

in billion
25.0
20.0

-11.5
(6.5%2))

15.0
10.0

21.6
-4.6

0.4

5.0

0.2
5.9

6.1

0.0

2013

20.6
Cash flow
from operating
activities

1)
3)

-11.0(6.3%3))

-4.0

0.6

Capex

Capitalized
R&D costs

Other

All figures shown are rounded, minor discrepancies may arise from addition of these amounts
Capital expenditure for property, plant and equipment in % of Automotive sales revenue
Volkswagen
at a Glance

Our Brands &


Products

Markets &
Sales

2)

6.1
Net cash flow
before equity
investments

-1.7

4.4

Acquisition
and disposal of
equity investments

Net cash flow

Including allocation of consolidation adjustments between Automotive and Financial Services divisions

Financials &
Outlook

Strategy
2018

Excellence in
Production

Focus
on R&D

Shareholder
Information

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Team

43

Strong cash generation and sufficient net liquidity


Operating cash flow and investments (automotive)

Net liquidity (automotive)

0.2

bn

bn

18.6
17.0

13.7

13.9

12.8
8.8

8.0

-5.7

13.5

16.2
7.7

6.9

5.2

6.1

3.7

5.9

10.6

-0.1
-8.9

-0.9
-2.6

-7.6

-7.0

-2.7

-2.1

-9.4

17.6

21.6

20.6
17.1

16.9

10.6

8.0
-12.5

-14.5

-15.7

-6.6
-3.9

2007

2008

Op. cash flow

1
2

2009

2010

Investing cash flow1)

2011

2012

Equity investments 2)

-1.7

2013

2014
2007

Net cash flow3)

2008

2009

2010

2011

2012

2013

2014

Cash flow from investing activities attributable to operating activities excl. cash flow from acquisition and disposal of equity investments
Cash flow from acquisition and disposal of equity investments 3 Net cash flow before acquisition and disposal of equity investments
Volkswagen
at a Glance

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Products

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2018

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44

Robust financial structure to ensure Group solvency at all times


Capital Market Programs
Program

Authorized
volume
billion

Amount utilized on
Dec. 31, 2014
billion

26.7

4.6

117.4

61.8

Commercial paper
Bonds
of which hybrid issues
Asset-backed securities

55.4

The Groups refinancing activities in 2014 continuously focused on the diversification of


its issues and the expansion of its maturity profile so as to address a broad base of
investors and access new groups of investors.

5.0

Overall we implemented a higher number of capital market transactions to refinance our

28.0

operating business and strategic projects and issued bonds with a value of approximately
30 billion.

Rating Overview

The main currencies of the issues were euros, US dollars, sterling and Canadian dollars;
As of March 16, 2015

Volkswagen AG

Volkswagen
Financial
Services AG

Volkswagen
Bank GmbH

the share of fixed-rate refinancing was roughly twice as high as the share of variable-rate
instruments. In addition the Group was active in the Russian and South Korean capital

Standard & Poors

markets for the first time.

Short-term

A1

A1

A1

Long-term

In 2014, rating agencies Standard & Poors and Moodys Investors Service undertook

stable

stable

stable

their regular update of their credit ratings. While Moodys confirmed its short-term and

Short-term

P1

P1

P1

Long-term

A2

A2

A2

stable

stable

stable

Outlook
Moodys

long-term ratings and the positive outlook, Standard & Poors raised its short-term and

Outlook
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long-term ratings for all three companies by one notch each to A1 and A (stable outlook).
In March 2015, Moodys also raised its short-term and long-term ratings by one notch to
P1 and A2 (stable outlook).
Strategy
2018

Excellence in
Production

Focus
on R&D

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45

Volkswagens Automotive Division further strengthens innovation and


technology leadership
Investments in property, plant and equipment
billion / in % of sales revenue

11.0

5-year investment program remains on a stable level


85.6 bn

11.5

10.3

41.3 bn

Modernizing and
extending the
product range

64.3 bn
Investments in
property, plant and equipment

7.9

5.8

6.3%

5.7
5.6%

6.2%

5.9%

23.0 bn

Cross-product investments

6.5% Capex to sales ratio


between 6 and 7%

21.9 bn
Capitalized
development costs

5.0%

2015 - 2019

-0.6 bn Others

Around two-thirds will continue to flow into increasingly efficient vehicles, drives
and technologies, as well as environmentally friendly production

In addition, China JVs will invest a total of 22.0 bn in new production facilities

2009

2010

2011

2012

2013

2014

and products (fully self funded)

2019

Note: All figures shown are rounded


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Positive long-term trend of return on investment


The increase of the operating automotive profit after tax was due to

Operating profit after tax and return on investment (ROI)


in the Automotive division

positive volume and mix effects, optimized product costs and the significant
improvement in the proportionate operating profit of the Chinese joint
ventures. These factors more than offset the deteriorations in exchange
rates, higher depreciation charges as a result of increased capital

Operating profit after tax ( million)


RoI

17.7%

16.6%

expenditures, higher research and development costs, and greater fixed


costs due to growth factors. Effects on earnings and assets from purchase

14.5%

14.9%

13.5%

>16%
strategic
goal

price allocation are not taken into account as this is beyond what is feasible
10.9%

from an operational management perspective.

9.5%

Invested capital rose to 78,889 million (72,749 million), primarily due to


increased investments in property, plant and equipment, investment
property and intangible assets, excluding capex.

9,375

The ROI rose year-on-year in 2014 due to earnings-related factors, and


was well above our minimum required rate of return of 9%. At 6,074

3,567

4,469

operating profit after the opportunity cost of invested capital led to a clear
improvement in the value contribution, which grew to 5,660 million

10,536

2012

2013

11,734

5,859

3.8%
1,673

million (6,038 million), the opportunity cost of capital (invested capital


multiplied by cost of capital) was level year on-year. The increased

10,911

9%
minimum
required
rate of return

2007

2008

2009

2010

2011

2014

Note: Including proportionate inclusion of the Chinese joint ventures (including the relevant sales and component
companies) and allocation of consolidation adjustments between the Automotive and Financial Services divisions

(4,497 million).
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Volkswagen Group reliably delivering on targets


Outlook 2015 and achievements 2014
million vehicles / billion

2013

Outlook 2014

9.7

moderate growth

+4.2%

10.1

moderate growth

Sales revenue

197.0

+/- 3%

+2.8%

202.5

increase by up to 4%

Operating profit

11.7

within forecast range

12.7

within forecast range

Operating return on sales

5.9%

5.5 6.5%

6.3 %

Sales revenue

140.1

+/- 3%

+2.5%

9.0

within forecast range

6.4%

5.5 6.5%

6.8%

Sales revenue

34.9

+/- 3%

-2.8%

Operating profit

0.8

moderate growth

Deliveries to customers

Volkswagen Group

Operating profit

Passenger Cars

Operating return on sales

Commercial Vehicles /
Power Engineering
Financial Services
Division

Automotive Division

Operating return on sales

2.3%
22.0

+/- 3%

Operating profit

1.9

within forecast range

Operating return on sales

8.5%

8.0 9.0%

7.7%

Capex/sales revenue

6.3%

6.0 7.0%

6.5%

4.4

moderate decline

+38.6%

14.5%

9.0 14.5%

14.9%

Net cash flow

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Outlook 2015

5.5 6.5%
143.6

increase by up to 4%

9.8

within forecast range


6.0 7.0%

33.9

increase by up to 4%

0.9

within forecast range

2.8%

Sales revenue

Return on investment (RoI)

Volkswagen
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2014

Strategy
2018

Excellence in
Production

+13.3%

Focus
on R&D

2.0 4.0%
24.9

increase by up to 4%

1.9

previous years level


6.0 7.0%

6.1

moderate decline
sign. > 9.0 < 14.9%

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48

Volkswagen Group outlook for 2015


+ 4.2%

Deliveries to
customers

9,731

We expect

10,137

(000 vehicles)

Sales revenue

+ 2.8%
202.5
197.0

to moderately increase Volkswagen Group deliveries to customers


year-on-year in 2015 in a persistently challenging market environment.
2015 sales revenue for the Volkswagen Group and its business areas to
increase by up to 4% above the prior-year figure, depending on the economic
conditions. However, economic trends in Latin America and Eastern Europe
will need to be continuously monitored in the Commercial Vehicles/Power
Engineering Business Area.

( billion)

In terms of operating profit


we anticipate a Group operating return on sales of between 5.5% and 6.5%
in 2015 in light of the challenging economic environment.

Operating return
on sales

5.9

6.3

(%)

2014
2013
Full Year
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The operating return on sales is expected to be in the 6.0% to 7.0% range in


the Passenger Cars Business Area and between 2.0% and 4.0% in the
Commercial Vehicles/Power Engineering Business Area.
For the Financial Services Division, we are forecasting an operating profit at
the prior-year level.
Financials &
Outlook

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2018

Excellence in
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Focus
on R&D

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SEAT Concept 20V20

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Content
Volkswagen at a Glance

Our Brands & Products

10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

Shareholder Information

84

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92

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51

Strategy 2018 - a global economic and environmental leader by 2018


We have defined four goals that are designed to support Volkswagen becoming a global and environmental leader by 2018. To achieve these targets we have identified six areas to
focus on:
Growth market focus
Potential upside
Product portfolio extension
North American expansion and market
recovery
Commercial vehicle strategy
and market recovery
Financial Services: strengthen the
automotive value chain

Capital discipline

Operating profit measures

Reduction in investment,
development and unit costs
Scale and efficiency effects
Increased production flexibility
Reduced time to market

Volkswagen Group
profit before tax
margin > 8%
Volumes
> 10 million
units p.a.2)

Leveraging best practices across the


Group
Purchasing, production, and
distribution benefits

Leading in
customer satisfaction
and quality
Top
employer

Synergy potential

Modular toolkit strategy

Increased market penetration


Emerging markets expansion
Balanced global footprint

> 16% RoI target in


automotive business
20% RoE1) goal in
Financial Services

Strong cost control


Process/product optimization
Regional scale effects

1) Normalized RoE based on 8% equity ratio 2) Including China


Note: All stated Volkswagen Group figures represent financial targets for 2018

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Volkswagen well on track to achieve targets under Strategy 2018


Volkswagen Group customer satisfaction

Group profit before tax margin

(on a scale of 1 to 101)

(in percent)

8.8
8.2
6.0

2010

7.83 6.93

7.1

5.8

Leading in
customer satisfaction
and quality
2007

13.2

11.9

8.4

6.3

7.3

1.2
2007 2008 2009 2010 2011 2012 2013 2014

2014
Volkswagen Group
profit before tax
margin > 8%

Top
employer
Volumes
> 10 million
units p.a.2

I am happy to work at the Volkswagen Group


(Employee opinion survey, index)

90

Group deliveries to customers


(in million units)

10.1
9.3
7.2

84
6.2

2007/08
1)
3)

2007

2014

2010

2012

2014

Own calculation based on key industry studies on customer satisfaction with dealers, after sales and new vehicles 2) Including China
Group profit before tax margin excluding the nonrecurring effect from the remeasurement of the Porsche put/call options and from remeasurement at the contribution date of the shares already held

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53

Growth expectations had to be lowered for major markets, excl. China


GDP growth remains behind forecasts but recovery expected until 2018

Volume projections for global car markets


(ex China) reduced significantly
in million units

GDP growth p.a. 2010 2018 (%)

80

35

-4m

+4m

75

30

-6m

+1m

70

25

65

20

60

15

1
2010

55

10

-1
2010

2014

2018

Western Europe

2014

2014
estimate

2018

World

2018
estimate

2014
estimate

World exChina

Dec 2010 forecast


Actuals
Sept 2014 forecast

2018
estimate

China (incl. HK)

Projection as per end of 2010


Projection as per October 2014

Source: IHS Economics


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Tightening environmental regulation and major trends driving


substantially higher investment and engineering needs today
CO and EU6 regulations

Market / consumer trends

Grams CO2 per kilometer, normalized to NEDC

Status and forecast of CO-regulations


EU

270

US-LDV
(PC+LDT)

China

250

Digitalization

Shorter
lifecycles

E-mobility

SUV
trend

Automated
driving

Shift in
priorities

230
US baseline: 219
210
China baseline: 185

190

170
China 2015: 167
150
US 2025:107

EU baseline: 142

130

110

90
2000

EU 2020: 95
2005

2010

2015

2020

2025

Source: based on ICCT


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Future Tracks paving the way to the future


Strategy for the time beyond 2018
Revenues

Profitability
Costs

E-mobility Digitalization Business models Product cycles Automated driving

Future
trends
Economic
uncertainty

Trade barriers

Currencies

Economic
development

Regulation

Volkswagen Group 2018 Strategy

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Volkswagen Brand: substantial efficiency measures across all


business areas to ensure > 6% target return before 2018

Production

Volkswagen
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Cost

Reduce complexity and improve


decision making process
Increase use of common parts and
reduction of number of variants
Sharpen target-oriented investment
Increase localization in core markets
Enhance R&D efficiency
Leverage scale effects and groupwide
synergy potential further

Sales & Distribution


Regional
business models

Procurement

R&D

Revenue

Adapt lifecycle strategy to meet core


regional competition
Focus on models providing sustainable
profitability
Expand after-sales business

Fixed costs

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Volkswagen Brand: three focus areas to improve competitiveness


Efficiency Program
Model Portfolio & Cycle Plan

Continually adapt product lifecycles to


the specific regional and competitive
requirement
Challenge every model regarding growth
prospects and sustainable profit
contribution

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Strengthen Regions

Cost Discipline & Productivity

Improve operational and financial


robustness of regional business models
Increase localization of products,
production and components as well
as research and development

Financials &
Outlook

Strategy
2018

Excellence in
Production

Strong focus on cost and investment


discipline
Roll-out of efficiency program in order to
secure/improve cost efficiency and
quality of results

Focus
on R&D

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58

New Touran: variants will be reduced in order to compensate complexity


drivers and to cut costs
Touran current model

Touran successor

Complexity drivers

Variant reduction

Drivers assistant systems


Legal requirements
Seating options

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Steering wheels
Trunk lining
Mirrors

Strategy
2018

Excellence in
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Focus
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59

Significant savings potential through various variant reductions


(% reduction in number of variants)
Golf 7: Batteries

Golf 7: Interior lamps

~50%

~50%

Golf 7: Armrests (leather)

Polo successor: Engine/gearbox variants

>30%

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>30%

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Bentley EXP 10 Speed 6

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Content
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10

Markets & Sales

26

Financials & Outlook

39

Strategy 2018

52

Excellence in Production

63

Focus on R&D

73

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Excellence in production - 118 Locations worldwide provide the


capacity to meet local demand1)
72
Volkswagen

Production locations
Production locations under construction

is

represented

in

each

important region with at least one plant.

Europe

Local production allows us to offer model


variations that answer the different needs
of our regional customers from China to
North America, India and Europe.
Our

3
6

Mexico

19

India

Taiwan

China

1)

Argentina

New counting method used


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production is in the process. Our factories

South East
Asia

Brazil

As of March 12, 2015.

The transfer of the toolkit principle to

5
3

are highly flexible, and it can produce a


wide range of models and brands on the
same production line.
The latest addition to our production

network is a components plant in Tianjin


in

South Africa
Financials &
Outlook

architecture

effective and timely manner.

South Korea

USA

engineering

allows this to be achieved in a cost

flexible

the

north

of

China,

which

was

inaugurated in November 2014.


Strategy
2018

Excellence in
Production

Focus
on R&D

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63

Further increasing localization in major regions is at the centre of


Volkswagen Passenger Cars strategy
Substantial

progress

has

been

~ 40%

made with high localization rates

Polo/Jetta/Tiguan

achieved today in North America


and China.
However,

FAW-VW > 90%

local

content

in

key

regions, such as Russia or India,

Magotan/NCS/New-Bora/ needs to be increased further.


Golf/Passat CC
A high degree of localization helps

> 90%
US Passat

SVW > 90%


> 90%

~ 60%

Golf/Jetta,
Beetle

Polo/Polo Vento

Polo/Passat/Tiguan/
Touran/Lavida-Family/
Santana

reduce transactional currency


risks.

> 80%

to create a natural hedge and to

to avoid import duties, trade


barriers and sales taxes.

Gol V, Voyage,
Fox Family,
Polo Family, up!

to secure profitability of locally


produced model.

model more robust.

Note: Status as of October 2014


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to make the regional business

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Innovative technical flexibility made simple


Flexibility of volume

Turntable (Drehscheibe)
WOLFSBURG

ZWICKAU

Integrated production across three sites (Schematic illustration)


e.g. Additional demand for Volkswagen Passat
Additional Passat volume
due to customer demand

Golf

Golf

Passat

Passat

Tiguan

EMDEN

ZWICKAU

WOLFSBURG

EMDEN
Capacity
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Organizational flexibility
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2018

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Modular toolkit efficiency gains through synergies


TECHNICAL CONCEPT

Significantly reducing the fuel consumption of our vehicles,


producing

them

at

globally

competitive

costs

and

simultaneously increasing profitability and productivity


these are the Volkswagen Groups goals for its modular toolkits.
The modular toolkit strategy represents the further development
of our platform and modular strategy, which has its origins in
the mid-1990s. Independent from size and segment, several
parts, such as engines, gearboxes or air conditioning, can be
used for different vehicles.
This ensures that the synergy effects that exist, both between
models in one series and across all series and brands, can be
optimized and increased.

Modularisation enables standardization with visible customization


whilst maintaining the individual brand identity.

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Modular toolkit brand responsibilities


Audi started with the launch of the Modular Longitudinal Toolkit
and keeps the responsibility. The know-how which they have

Continuous Roll-out of Toolkit Strategy across Segments, Regions & Brands

Vehicle price

A000
NSF
MQB
MLB
MSB

A00

A0

Responsibilities

gained over the years, helped and helps to develop the following
toolkits.
The Volkswagen Passenger Cars brand is responsible for the

New Small Family

Modular Transverse Toolkit which will be used for the

Modular Transverse Toolkit

Volkswagen, Audi, SEAT and KODA brands.

Modular Longitudinal Toolkit

MSB

Modular Standard Drivetrain Toolkit

Development of the Modular Standard Drivetrain Toolkit is


being handled by Porsche, which was made responsible for
development of sports car and luxury sedan platforms. The MSB

MLB

is for a conventional front-engine, rear-wheel drive layout, hence


the word standard in its title, and it will be used for a range of

MQB

models including the next-generation Porsche Panamera and

NSF
Established markets

Bentley Continental lineup.

Emerging markets

In addition, the New Small Family complements the toolkit

Vehicle classes

strategy. The up! and its derivatives are not produced based on
the MQB. However, individual components such as engine,
gearbox and steering components can be used for vehicles
based on MQB.

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Modular toolkit introduction of the Modular Transverse Toolkit


MODULAR LONGITUDINAL TOOLKIT (MLB)
The Modular Longitudinal Toolkit is the use of a modular strategy in vehicle platforms in which the drive train is mounted
longitudinally to the direction of travel. This modular arrangement of all components enables maximum synergies to be achieved
between the vehicle families. This concept is already used at Audi since 2007 to develop vehicles. With the evolutionary step MLB
evo, the toolkit is expanded in the future. The Audi Q7 is the first car based on the MLB evo. Others such as the new Audi A4, A6 etc.
will follow.
MODULAR TRANSVERSE TOOLKIT (MQB)
The Modular Transverse Toolkit (MQB) is the basis for vehicles with a transversally mounted engine. We introduced the first models
based on this toolkit in the shape of the new Audi A3, the new Golf and the new SEAT Leon in 2012 followed by the new KODA Octavia
in 2013. In 2014 the most important MQB launch was the new Passat. The list of future MQB models to be released includes the
successors for Touran, KODA Superb, Tiguan.
The MQB extends from the A0 segment to the B segment. We intend to produce over 40 models based on the MQB in the long term and
across brands to the highest quality standards, customized for each brand and tailored to the different market requirements.

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MQB driving forward economies of scale in unit cost, investment and


supporting achievement of emission targets
Distribution of MQB savings

Different powertrains

MQB platform
ca. 60% of total
material costs

The MQB's flexible design is able to


accommodate alternative drives:

Lower cost per unit

Additional serial and


option content

Less EHpV1)

Savings to be partly
absorbed to fulfill
regulatory and legal
requirements

Less one-off expenditures

= Potential savings

Margin improvement
Savings
1)

Expenditures

Invest

Engineered Hours per Vehicle


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Sustainable success secured through the roll-out of modular toolkits


MQB production share of total production volumes1)

Global roll-out of modular toolkits

Number of toolkit equipped plants and volume


Plants

>20

Plants

Volume
MQB + MLB

<30

2013

17
12

MQB
MLB

>25

5 4

2012

2014

2015

10

2014

10

2016
2016

2017

Volkswagen
Group

2018
Including China; the Chinese share in the global MQB volume amounted to around
one fifth in 2014 and is expected to increase to more than one third in 2018

1)

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Lamborghini Aventador P 750-4 SV

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26

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52

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63

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73

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92

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Focus
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Focus on R&D our mission


Shaping the future is a fascinating challenge for industry and society. Volkswagens automotive future is formed by social conditions and trends. It is the Groups task to anticipate the
future needs of our customers and to convert these needs into innovative technologies.
The technological challenges of the future can only be mastered by intensive research and networked co-operation both inside and outside the company. Our mission is to continue
meeting our customers wishes for individual and affordable mobility through sustainable technologies. We work together with our partners to achieve this goal. The Volkswagen Groups
research and development activities continued to concentrate on expanding our product portfolio and improving the functionality, quality, safety and environmental
compatibility of our products in fiscal year 2014.

1972 BEETLE 1303


Consumed 13l/100km

2013 XL1
Consumes just 0.9l/100km

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Volkswagen continues investment in its global R&D activities


Alongside new models, the main R&D focus was on electrification, an efficient range of

R&D Employees Volkswagen Group

engines and lightweight construction; the proportion accounted for by alternative drive
(000 employees)

technologies increased again. The capitalization ratio rose to 35.1% (34.2%).


R&D costs recognized in the income statement in accordance with IFRSs increased to
11.5 billion (10.2 billion); the ratio to sales revenue in the Automotive Division was 6.5%

42.1

43.6

45.7

2012

2013

2014

34.7
22.8

25.6

27.4

2008

2009

2010

(5.8%). At year end, R&D including the Chinese joint ventures employed 45,742 people
Group-wide (+4.5%), corresponding to 7.7% of the total headcount.

Volkswagen Group R&D Footprint


SCANIA
Volkswagen
VWGoA Chattanooga
operations
ERL

KODA

R&D Expenses Volkswagen Group


( billion)

Volkswagen
Commercial Vehicles

Bentley

VW Group RUS
FAW-VW
Bugatti
Audi
Porsche
VTB
SEAT
VTT
MAN
Italdesign
Lamborghini
Shanghai VW

Volkswagen
Argentina

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VW of
South Africa

Financials &
Outlook

11.5

7.2

5.8%

6.1%

5.1%

5.1%

5.8%

6.5%

2009

2010

2011

2012

2013

2014

5.4

5.0%

2008

2.2

Markets &
Sales

10.2

8.9

6.9

5.1

Capitalization ratio in %

( billion)

VW do Brasil
SCANIA LAM

% of automotive sales

of which capitalized development cost:

VW India
VW de
Mexico

2011

Strategy
2018

4.0

4.6

2.6
1.9

37%

34%

2008

2009

Excellence in
Production

1.7

1.7

27%

23%

2010

2011

Focus
on R&D

34%

35%

2013

2014

28%

2012

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74

A technology portfolio for eco-friendly mobility


Integrating a wide range of innovations into fuel-efficient, low emission mobility solutions, Volkswagens green labels offer technologies and products that are geared to
significantly reduced fuel consumption and CO2 emissions. Volkswagen is committing to reducing the CO2 output of the European new car fleet to 95 grams per kilometer by
2020. We again recorded impressive results in reducing emission levels last year: we reduced the average CO2 emissions over the past six years by 26 grams of CO2 per kilometer to
125 grams of CO2 per kilometer.

Efficient Technologies for Sustainable Mobility

Volkswagen: Progress to minimal CO2 Emissions


Grams CO2 per kilometer, European fleet1)

Model Derivatives with low CO2


Emissions2)

190

120g CO2/km

415
160

85
130

100
1) EU

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95g CO2/km
2007 2008 2009 2010 2011 2012 2013 2014
28, incl. Croatia from July 1, 2013.
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95g CO2/km
100g CO2/km

120g CO2/km
2)

Focus
on R&D

100g CO2/km

EU27, data status: February 2015


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75

Challenge or opportunity? Substantial competitive advantage potential


through industry leading powertrain solutions
Technologies to increase
CO2 efficiency

EU27
Fleet value in 2006

166g CO2/km

EU27
Fleet value in 2014

125g CO2/km

Optimizing
conventional drive trains

Fleet CO2 emissions

CO2 efficiency measures


in the vehicle
Using alternative drive
technologies

+
PHEV

EU27
Fleet value in 2020

95g CO2/km

Technologies and energy sources


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415 Group models below 120g/km CO2 emissions


(Engine/Transmission) EU 27 Market

114 Volkswagen/Commercial Vehicles models


Top: e-Golf EV 0 g/km CO2

100 Audi models


Top: A3 Sportback e-tron 1.4 TFSI 35 g/km CO2

110 SEAT models


Top: Mii 1.0 MPI CNG 79 g/km CO2

88 KODA models
Top: Citigo 1.0 MPI CNG 79 g/km CO2

3 Porsche models
Top: 918 Spyder 70 g/km CO2

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Steps in electrification
The Groups drivetrain strategy is paving the way for carbon-neutral, sustainable mobility. We are pursuing the goal of increasing drive system efficiency with each new model
generation, irrespective of whether these are powered by combustion engines, hybrids, plug-in hybrids, pure electric drives, or potential future fuel cell drive systems. Thanks to our
conventional and alternative technologies and the modular toolkit strategy, which allows innovations to be incorporated rapidly into different vehicles, we are optimally positioned to
meet the challenges that the future will bring.
Internal combustion
engine (ICE)

Gasoline or Diesel
Engine

Mild Hybrid

Start-Stop system
Recuperation

Full Hybrid

Plug-In
Hybrid

Jetta Hybrid

Golf GTE

Full Hybrids, in
contrast to mild
hybrids, can drive
short distances in
full electric mode.

Combination of ICE
and electric motor.
The electric motor
serves to boost
power during
acceleration. Pure
electric driving is
not possible.

The Batteries of PlugIn Hybrids can be


charged by plugging
into an electric socket.
Due to the greater
battery capacity,
longer electric driving
ranges are possible.

Range
Extender

Electric
vehicle

Range Extender
Electrical Vehicle
Small internal
combustion engine
which recharges
the vehicles battery
and thereby
increases its range.

Audi R8 e-tron

Fuel Cell

Golf Variant
HyMotion

In the next decades, todays technologies will


continue to be dominant. Combustion engines
some of them supported by E-motors, pure Edrives and fuel cells will co-exist side-by-side.
On its path towards the future, Volkswagen will
continue to research and further develop all
potential engine types and introduce them as
soon as it makes sense and is technically
feasible.

Electric Motor
Both
Internal Combustion Engine
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Urban Mobility and Long Distance Mobility


The use of efficient, sustainable drivetrains is a highly important strategic issue for Volkswagen. The Group is not only working to continuously optimize its existing drivetrains but is
also as in the past pursuing a variety of alternative drive concepts, and especially electric traction.

e-up!

Caddy blue-e-motion

Panamera Hybrid

Touareg Hybrid

e-Golf

Bik.e
Passat BlueMotion

Cayenne Hybrid

E-Scooter

Kickstep

XL1

Q5 Hybrid
Urban Concept

Golf GTE

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Transition to piloted driving already started and offers huge potential


Drivers assistant systems in the new Passat

Emergency assist
with lane change

Traffic jam assist


with hands-off

Work zone
lane assist

Automated
driving
Automated parking

Emergency assist
Trailer assist

Traffic jam assist

Front assist with


pedestrian monitoring

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Audi proved its leadership in piloted driving


One of Groups most important development areas is piloted
driving. Driver assistance should make the job easier
whenever it makes sense not just when maneuvering in
tight parking spaces or in parking lots, but also for example in
slowmoving traffic on the highway. Once the necessary
conditions (e.g. the legal basis) are in place, functions like
these could go into series production in the next few years.
Audi has shown what the technology can already do: the
Audi RS7 piloted driving concept completed a lap of the
Hockenheim Grand Prix track in the reporting period at racing
speeds of up to 240 km/h without a driver. The results of
this test are being integrated into the development of series
models and are helping to increase the safety and comfort of

Audi RS7 piloted driving concept at the Hockenheim Grand Prix

future vehicles.

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Bugatti Veyron Ettore Bugatti

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Shareholder information key facts & figures about Volkswagen share


KEY FACTS & FIGURES (as of December 31, 2014)
In 1961, Volkswagen first issued ordinary shares on the Frankfurt
stock exchange with a nominal value of DM100 issued at a price of 350

Securities
Identification
Codes

Ordinary Share:
ISIN: DE0007664005
WKN: 766400
Bloomberg: VOW
Reuters: VOWG.DE

Exchanges

Berlin, Dsseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Xetra,


Luxembourg, New York1), SIX Swiss Exchange

Major market
indices

DAX, CDAX, Prime All Share, Prime Automobile, Dow Jones Euro STOXX,
Dow Jones Euro STOXX Automobile & Parts, S&P Global 100 Index, Dow
Jones Sustainability Index World, FTSE4Good, Dow Jones Sustainability
Europe Index, Dow Jones Euro STOXX 50, MSCI Euro, Classic All Share,
CDP Global 500 Climate Disclosure Leadership Index

Preferred
shares2)

Unlike ordinary shares, preferred shares do not carry voting rights. Dividends
are paid to stockholders in proportion to their share of the capital stock eligible
for dividend in such a manner that the preferred shares shall be eligible for a
dividend which is higher than that for the ordinary shares by 6 Cents per
preferred share.

American
Depositary
Receipt (ADR)

An ADR is a U.S. dollar denominated form of equity ownership in a non-U.S.


company. It represents the foreign shares of the company held on deposit by a
custodian bank in the company's home country and carries the corporate and
economic rights of the foreign shares, subject to the terms specified on the
ADR certificate.

percent. Two stock splits were performed in the course of time.


Presently, the majority of the ordinary shares are held by the Groups
three biggest shareholders guaranteeing a stabile shareholder
structure.
In 1986, Volkswagen introduced its preferred shares as an alternative
investment vehicle. In December 2009 the ordinary shares were
replaced through the preferred shares in the German DAX stock index.
Volkswagen is globally represented with a market capitalization of
around 86.5 billion as of December 31, 2014. The shares are listed
on different exchanges worldwide, among others in Frankfurt, London
and Zurich. In the U.S., Volkswagen has 2 sponsored ADR programs,
representing the preference and ordinary shares. Both are sponsored
by J.P. Morgan and trade in the US on the over-the-counter (OTC)
market.

Preferred share:
ISIN: DE0007664039
WKN: 766403
Bloomberg: VOW3
Reuters: VOWG_p.DE

1) Traded as sponsored unlisted American Depositary Receipts (ADR). Five ADR certificates correspond to one underlying Volkswagen
Ordinary or Preferred share. 2) Definition excludes specific exemptions. For more details see Articles of Association of Volkswagen AG.

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Volkswagen Aktiengesellschaft shareholder structure


SHARE IN TOTAL SUBSCRIBED CAPITAL (as of Dec. 31, 2014)

12.3%
Private shareholders/
Others

SHARE IN VOTING RIGHTS (as of Dec. 31, 2014)

2.1%
German institutional
investors

12.3%
Others

31.5%
Porsche Automobil
Holding SE, Stuttgart

50.73%
Porsche Automobil
Holding SE, Stuttgart
17.0%
Qatar Holding LLC

26.3%
Foreign institutional
investors

12.4%
State of Lower
Saxony, Hanover

15.4%
Qatar Holding LLC

20.0%
State of Lower
Saxony, Hanover

The subscribed capital of Volkswagen AG, which amounted to 1,217,872,117.76 at the end of 2014, is composed of 295,089,818 no-par value ordinary shares and 180,641,478
no-par value preferred shares. As well as ordinary shares, there are preferred shares that entitle the bearer to a 0.06 higher dividend than ordinary shares, but do not carry voting
rights.
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Volkswagen shares historical prices


HISTORICAL DEVELOPMENT ORDINARY AND PREFERRED SHARE (, monthly closing prices, as per February 2015)
Volkswagen Ordinary Share

Volkswagen Preferred Share

500

250

400

200

300

150

1998
Stocksplit
1:10

200
1969
Stocksplit 1:2

100

100

50

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Exceptionally positive long-term performance of Volkswagen shares


(as per year-end 2014)
Total annual return (annualized, dividends reinvested)
in % p.a.

Volkswagen AGs shares trended downward in 2014, underperforming the

- 1 year

- 5 years

- 10 years

Volkswagen Ordinary Shares

-6.6

+21.3

+20.7

Volkswagen Preferred Shares

-7.6

+25.8

+25.6

The ordinary shares were trading at 180.10 on the last day of trading in

DAX30

+2.7

+10.5

+8.7

2014, down 8.5% on the price at the end of 2013. With dividends reinvested

Euro STOXX 50

+4.9

+5.6

+4.8

as per the day of payment, the total return of the ordinary and preferred

Euro STOXX Automobile & Parts

+6.9

+18.6

+12.6

overall market and the automotive sector. The Companys preferred shares
closed the year 2014 at 184.65, down 9.6% on the prior-year figure.

shares amounted to -7.6% and -6.6%, respectively.


Over the medium and the long-term though, investors in Volkswagen shares
could achieve a substantially positive return (share price development plus

Total return (dividends reinvested)

dividends reinvested) both in absolute terms as well as relative to the indices


in %

- 1 year

- 5 years

- 10 years

and the sector. An investor who purchased Volkswagen preferred shares

Volkswagen Ordinary Shares

-6.6

+163.1

+558.1

worth 10,000 at the end of 2004 and reinvested the dividends had 65,700

Volkswagen Preferred Shares

-7.6

+215.2

+882.1

ten years later, corresponding to an annual average return of 25.6%.

DAX30

+2.7

+64.6

+130.4

Euro STOXX 50

+4.9

+31.4

+60.2

Euro STOXX Automobile & Parts

+6.9

+134.8

+228.2

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Over the ten-year period, the same initial sum would have grown to 23,000 if
invested in the DAX30 index. The investors would have earned an annual
return of 8.7%.
Source: Bloomberg

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Continuous dividend development on a sustainable basis


Development of dividend pay-out

and pay-out ratio

in per share

30%
4.801) 4.86

1)

+21.5% p.a.
4.00 4.06

1)
20.6% 21.2%

3.50 3.56

17.8%2)
2)
15.1% 15.7%

3.00 3.06
2.20 2.26

2010

2011
Ordinary Shares

1)

2012

2013

2014

2010

2011

2012

2013

2014

Preferred Shares

Midterm
target

Dividend proposal to Annual General Meeting on 05 May 2015 2) Total dividend in percent of net income attributable to shareholders adjusted for noncash income mainly from the updated measurement of the put/call rights relating to
the acquisition of the stake in Porsche AG indirectly held by Porsche SE, as well as the remeasurement of the existing stake held at the contribution date
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Events 2015

April 29, 2015

Volkswagen AG
Interim Report January March 2015
Wolfsburg

May 05, 2015

Volkswagen AG
Annual General Meeting 2014
Hanover

July 29, 2015

Volkswagen AG
Half-Year Financial Report January June 2015
Wolfsburg

October 28, 2015

Volkswagen AG
Interim Report January September 2015
Wolfsburg

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Porsche Cayman GT4

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Investor relations team


Christine Ritz
Group Head of Investor Relations
E-Mail: Christine.Ritz@volkswagen.de
Telephone: +49 5361 9 49840

Lars Korinth (Wolfsburg office)


Investor Relations Manager
E-Mail: Lars.Korinth@volkswagen.de
Telephone: +49 5361 9 42224

Oliver Larkin (London office)


Senior Investor Relations Manager
E-Mail: Oliver.Larkin@volkswagen.de
Telephone: +44 20 3693 6061

Lennart Schmidt (Wolfsburg office)


Investor Relations Officer
E-Mail: Lennart.Schmidt@volkswagen.de
Telephone: +49 5361 9 49015

Alexander Hunger (Wolfsburg office)


Senior Investor Relations Officer
E-Mail: Alexander.Hunger@volkswagen.de
Telephone: +49 5361 9 47420

Thomas Kter (Beijing office)


Investor Relations Manager
E-Mail: Thomas.Kueter@volkswagen.com.cn
Telephone: + 86 10 6531 4715

Andreas Buchta (Wolfsburg office)


Investor Relations Manager
E-Mail: Andreas.Buchta@volkswagen.de
Telephone: +49 5361 9 47419

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Volkswagen Caddy

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MAN TGX
EfficientLine

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Scania R 730 6x4

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Disclaimer
This presentation contains forward-looking statements and information on the business development of the Volkswagen Group. These statements may be
spoken or written and can be recognized by terms such as expects, anticipates, intends, plans, believes, seeks, estimates, will or words
with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular
of 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 involve 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 in Western Europe (and especially Germany) or in
the USA, Brazil or China, 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 rinminbi and Czech koruna.
If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ
from those expressed or implied by such statements.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded.
This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

96

12
fascinating brands

10.14 million
deliveries in 2014

592,586
employees worldwide

153

Factbook 2015

countries

97