Volkswagen Group Achieves Key Milestones in 2012

Volkswagen Group Achieves Key Milestones in 2012 
Targets for Numerous Strategic Projects Met in 2012; Sales Revenue
Grows by 20.9 Percent to EUR 192.7 Billion; Good Start to the Year --
Deliveries up 8.3 Percent in the First Two Months; Winterkorn:
"Volkswagen Is Approaching the Coming Months With the Necessary
Realism and Great Vigilance." 
WOLFSBURG, GERMANY -- (Marketwire) -- 03/14/13 --   The Volkswagen
Group successfully mastered the challenges posed by a difficult
market environment in 2012, again posting record vehicle sales, sales
revenue and earnings. "Volkswagen is feeling the headwinds --
especially in Europe. Nevertheless we remain guardedly confident,"
said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management
of Volkswagen Aktiengesellschaft, on Thursday during the presentation
of the Company's 2012 financial results. 
The Volkswagen Group not only turned in a compelling operational
performance in the past fiscal year -- it also met its targets for
major strategic projects: The Porsche brand has been wholly owned by
Volkswagen since August 1, 2012 and Ducati, a legendary motorcycle
brand, has now joined the Group family. A leading mobility group
needs a strong commercial vehicles business -- and the alliance
between MAN, Scania and Volkswagen Commercial Vehicles means that the
groundwork for this has been laid. The launch of the Modular
Transverse Toolkit in 2012 ushered in a new era in passenger cars. In
addition, Volkswagen became the first carmaker to commit to the CO2
target of 95g/km by 2020. 
CFO Hans Dieter Poetsch was also satisfied with 2012. "We continued
our successful course and further strengthened our market position
thanks to our high profitability," said Poetsch. "Our growing
presence in all key markets, our outstanding brand portfolio, our
attractive product range and our broad financial services offering
combined with our sound finances and forward-looking management are
contributing to the systematic implementation of our Strategy 2018." 
Group figures for 2012 
The Volkswagen Group's sales revenue increased by 20.9 percent in
fiscal year 2012 to EUR 192.7 billion (previous year: EUR 159.3
billion). Consolidated operating profit rose slightly to a record EUR
11.5 billion (EUR 11.3 billion). The consolidated operating profit
doe
s not include the EUR 3.7 billion (EUR 2.6 billion) proportional
share of the operating profit recorded by the Chinese joint ventures.
These companies are included in the consolidated financial statements
using the equity method and are therefore reflected in the Group's
financial result, which rose by EUR 6.3 billion last year to EUR 14
billion. The improvement in the financial result is primarily
attributable to noncash effects of EUR 12.3 billion from the final
valuation of the put/call rights relating to Porsche as of July 31,
2012, as well as from the remeasurement of the existing shares of
Porsche held at the contribution date. All in all, the Volkswagen
Group's profit before tax last year rose by approximately EUR 6.6
billion to EUR 25.5 billion. Profit after tax amounted to EUR 21.9
billion (EUR 15.8 billion). 
In view of the Company's continued success, the Board of Management
and the Supervisory Board will be proposing to the Annual General
Meeting on April 25, 2013 to increase the dividend to EUR 3.50 (EUR
3.00) per ordinary share and EUR 3.56 (EUR 3.06) per preferred share. 
At 16.6 percent, the return on investment for the Automotive Division
was down slightly on the previous year (17.7 percent), primarily as a
result of the increase in invested capital, but was still
significantly above its minimum required rate of return of 9 percent.
The return on equity in the Financial Services Division declined
slightly to 13.1 percent (14.0 percent). "We aim to safeguard the
quality of our earnings for the long term. In this context, we will
take care to further increase profitability in all regions and to
establish ourselves on new growth markets," said Poetsch. 
Net liquidity in the Automotive Division remained sound at EUR 10.6
billion at the end of December 2012 (year-end 2011: EUR 17.0
billion). This gives the Group the necessary financial stability and
flexibility to systematically implement its Strategy 2018. Reasons
for the decline include the contribution in full of Porsche's
automotive business, the acquisition of Ducati and the increased
stake in MAN SE. The ratio of capital expenditure to sales revenue
rose slightly (0.4 percentage points) to 5.9 percent. In addition to
its production facilities, Volkswagen invested primarily in the
expansion and ecological focus of its model range, and in the
modularization of its vehicle concepts. 
Brands and business fields 
Despite the tough environment, the Volkswagen Group outperformed the
market in 2012, growing in almost all key regions. Deliveries climbed
12.2 percent to 9.3 million vehicles. This saw the Group's global
share of the passenger car market rise to 12.8 percent
 (12.3
percent). 
The Volkswagen Passenger Cars brand delivered 5.7 million vehicles to
customers, an increase of 12.7 percent compared with the previous
year. The brand's operating profit amounted to EUR 3.6 billion (EUR
3.8 billion), down 4.1 percent year-on-year. This was due in part to
upfront expenditures for the Modular Transverse Toolkit and startup
costs for the new Golf. 
2012 was another record year for the Audi brand, which delivered 1.5
million (1.3 million) vehicles. Operating profit rose slightly by 0.6
percent to EUR 5.4 billion (EUR 5.3 billion) and the brand's
operating return on sales was 11.0 percent (12.1 percent). 
SKODA's sales increased by 6.8 percent to 939,000 (879,000) vehicles.
At EUR 712 million (EUR 743 million), operating profit was down
slightly on the prior-year figure due to market factors. 
Deliveries by the SEAT brand declined by 8.3 percent in 2012 to
321,000 (350,000) cars. The operating loss was cut by EUR 69 million
to EUR 156 million. 
Bentley delivered 8,510 (7,003) vehicles, 21.5 percent more than in
2011. Its operating profit climbed to EUR 100 million (EUR 8
million). 
Sports car manufacturer Porsche sold 60,000 vehicles and generated an
operating profit of EUR 946 million in the five months of its full
consolidation in the Volkswagen Group (from August 1, 2012). 
Volkswagen Commercial Vehicles delivered 550,000 (529,000) units, an
increase of 4.1 percent. Operating profit declined by 6.1 percent to
EUR 421 million (EUR 449 million). 
Scania recorded a 15.9 percent decline in deliveries to 67,000
(80,000) trucks and buses. Its operating profit declined from EUR 1.4
billion to EUR 930 million. MAN delivered 134,000 trucks and buses
and reported an operating profit of EUR 808 million. 
Volkswagen Financial Services generated an operating profit of EUR
1.4 billion (EUR 1.2 billion) in 2012. The division signed 3.8
million new finance, leasing and service/insurance contracts around
the world, 21.0 percent more than in the previous year. 
Outlook 
Volkswagen is starting 2013 from a position of strength, despite
tougher competition and difficult economic conditions. Excluding MAN
and Scania, 1.4 million vehicles were delivered worldwide in the
first two months of the year. At 8.3 percent, the Group grew more
strongly than the market. "Volkswagen has everything it needs to
continue its successful trajectory of recent years even under
different circumstances," said Winterkorn, adding: "We want to lead
the Volkswagen Group to the top of the automotive industry by 2018 --
profitably, sustainably and permanen
tly." In 2013, the Volkswagen
Group's brands will launch a large number of fascinating new models
and so help further expand its strong position on the global markets. 
Winterkorn was guardedly confident that the Group will outperform the
market as a whole and deliveries to customers will increase. However,
Volkswagen is not completely immune to the intense competition and
the impact this has on business. The modular toolkit system, which is
being continuously expanded, will have an increasingly positive
effect on the Group's cost structure. The Volkswagen Group's 2013
sales revenue is expected to exceed the prior-year figure. 
Given the ongoing uncertainty in the economic environment, the goal
for operating profit is to match the prior-year level in 2013.
Positive effects from its attractive model range and strong market
position will be curbed by increasingly stiff competition in a
challenging market environment. Disciplined cost and investment
management and the continuous optimization of Volkswagen's processes
remain an integral part of the Strategy 2018. 
Further information on the Annual Media Conference and Investor
Conference can be accessed at www.volkswagen-media-services.com and
www.volkswagenag.com/ir. 
Volkswagen Group Communications
Christine Ritz
Head of Group Investor Relations/Spokesperson for Finance 
Phone: +49 (0) 53 61 / 9-4 98 40
Fax: +49 (0) 53 61 / 9-3 04 11
E-mail: christine.ritz@volkswagen.de 
Marco Dalan 
Spokesperson for Finance
Phone: +49 (0) 53 61 / 9-7 11 21
Fax: +49 (0) 53 61 / 9-7 94 44
E-mail: marco.dalan@volkswagen.de 
www.volkswagen-media-services.com 
www.volkswagenag.com 
 
 
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