Volkswagen Records Record Profit of EUR 6.5 Billion in 2007

Its Highest Profit Before Tax In The History Of The Company

Wolfsburg, 29 February 2008 -- Volkswagen AG today announced in an Ad-hoc-Release its key figures for 2007.

Volkswagen presents 2007 consolidated financial statements:

- At EUR 6.5 billion, the Volkswagen Group recorded the highest profit before tax in the history of the Company; considerably higher than the target of at least EUR 5.1 billion originally planned for 2008

- Operating profit of EUR 6.2 billion increased by 40.3 percent compared with the previous year’s operating profit before special items, and more than three times higher after special items

- The Board of Management and Supervisory Board are proposing an increase in dividends for Volkswagen shareholders to EUR 1.80 per ordinary share

- Attractive model range further expanded; deliveries reach a record level of just under 6.2 million vehicles

- Sound balance sheet ratios: the equity ratio of the Group improved from
19.7 percent to 22.0 percent and of the Automotive Division from 28.8 percent to 32.3 percent

- Cash flows from operating activities in the Automotive Division increased by a further 16.4 percent on the high 2006 level to EUR 13.7 billion

- Investments in property, plant and equipment in the Automotive Division were EUR 4.6 billion, an increase of 25.0 percent on the low level of the previous year; the ratio of investments in property, plant and equipment to sales revenue (capex) increased from 3.8 percent to 4.6 percent

- Net liquidity in the Automotive Division increased to EUR 13.5 billion (previous year: EUR 7.1 billion).

Outlook

Its diverse range of brands gives the Volkswagen Group a critical competitive advantage. In 2008, almost all brands will again present attractive new models, enabling us to selectively complement the Group’s product portfolio and move into further market segments. We therefore expect deliveries to customers to exceed the record set in 2007, with sales figures rising in the Asia-Pacific and Central and Eastern Europe regions in particular.

As a result of the expected increase in unit sales, the Volkswagen Group’s sales revenue in 2008 will be higher year-on-year. “The further optimization of our processes and our continued systematic cost discipline will also have a positive impact on earnings development. Overall, we expect the Volkswagen Group’s 2008 operating profit to exceed the 2007 level”, said the Chairman of the Board of Management of Volkswagen AG, Prof. Dr. Martin Winterkorn.

Source: Volkswagen AG

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