volkswagen+in+the+us+ +an+evolving+growth+story

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Volkswagen in the U.S.: An Evolving Growth StoryDeutsche Bank Global Auto Industry Conference

Michael Lohscheller EVP & CFO, Volkswagen Group of America, Inc.

Detroit, 10 January 2012


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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 termssuch as expects, anticipates, intends, plans, believes, seeks, estimates, will or wordswith similar meaning. These statements are based on assumptions relating to the development of theeconomies of individual countries, and in particular of the automotive industry, which we have made onthe basis of the information available to us and which we consider to be realistic at the time of going topress. The estimates given involve a degree of risk, and the actual developments may differ from thoseforecast.

Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such asin Western Europe (and especially Germany) or in the USA, Brazil or China, will have a correspondingimpact on the development of our business. The same applies in the event of a significant shift incurrent exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese renminbi andCzech koruna.

If any of these or other risks occur, or if the assumptions underlying any of these statements proveincorrect, the actual results may significantly differ from those expressed or implied by suchstatements.

We do not update forward-looking statements retrospectively. Such statements are valid on the date ofpublication and can be superseded.

Disclaimer

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Agenda

Volkswagen Group sales update

Volkswagens profitable growth in the U.S. market

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Volkswagens profitable growth in the US market

Agenda

Volkswagen Group sales update

Volkswagens profitable growth in the U.S. market

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1) incl. Scania (Jan-Sept)2) preliminary figures

January to October 2011 vs. 2010World Car market: 5.1% VW Group: 14.4%

9.3%

21.4%

-1.5%

8.8%

26.1%30.5%

6.7% 5.1%11.4%

22.6%

2.5%

19.8%

North America Western Europe Central & Eastern Europe

South America Asia PacificRest of World

Car marketCars + LCV

VW Group Car market VW Group Car market VW Group

Car market VW GroupCar market VW GroupCar market VW Group

World car markets and Volkswagen Group deliveries to customers1,2)January to December 2011 vs. 2010

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Volkswagen Group deliveries to customers by market1,2)January to December 2011 vs. 2010

000 units January to December 2010

January to December 2011

7,183

2,896

427549 902

2,144

264

8,216

3,150

557667 948

2,569

324

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Volkswagen

Group

Western

Europe

Central &

EasternEurope

North America South America Asia Pacific Rest of World

14.4%

8.8%

30.5% 21.4% 5.1%19.8%

22.6%


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Volkswagen Group deliveries to customers by brands1,2)January to December 2011 vs. 2010

000 units January to December 2010

January to December 2011

7,183

4,503

1,092763

3405

43644

8,216

5,091

1,303876

3507

52959

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Volkswagen

Group

Volkswagen

PassengerCars

Audi KODA SEAT Bentley Commercial

Vehicles

Scania

14.4%

13.1%

19.2% 14.8% 3.1%

36.9%

21.4%

35.4%


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Volkswagen Group of America Overview

LocationsBrands

Group Sales 2011: > 444,000 units in USA /+ 23 % vs. YTD 20101

Group Market share YTD 2011: 3.5% in USA /+ 0.4 percentage points vs. YTD 20101

Over 4,300 employees

Finance company: VW Credit, Inc.

Locations in USA: Corporate Headquarters in Herndon, Virginia Group Quality/Technical Facilities Auburn Hills, MI New factory in Chattanooga, Tennessee Corporate Design Center and Electronic Research

Laboratory (ERL) in California

Ports and post production facilities in California,Georgia, Rhode Island and Texas Parts distribution centers in California, Florida, New

Jersey, Texas and Wisconsin Financial Service Center in Auburn Hills (Remarketing

& Auction) as well as in Illinois and Oregon

Source: 1Autodata Motor Intelligence, Jan. 2012

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Expected Overall U.S. Market Development

Gradual economic recovery

Job growth

Housing market recovery

Improved consumer confidence

Fleet renewal;more fuel efficient vehicles

Population growth,immigration

Source: Volkswagen Group of America, Inc., PwC/Autofacts

Mil. Units

18

17

16

15

14

13

12

11

10

014FC

0697 01 0790 94 080298 1095 03 0993 99 110496 12FC

92 05 13FC

0091

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Business Objectives 2012

Build on fundamentals that contribute to sustainable and

profitable growth

Out-perform market with double-digit growth

Volkswagen Group of America to continue sales momentum in2012 and aim to sell over 500,000 units the first time in 39years.

Market forecast between 13.5 14 million units in 2012depending on economic conditions.

Achieve profit at an operating level in 2012 for the secondconsecutive year for U.S. Sales Operations

Passat and Beetle with first full-year of sales. Refreshed CC to hitthe market this spring, followed later by the all-new Jetta Hybrid.

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Volkswagen in America Then and

Flashback to the 1960s... Then to the 1990s...

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Key Messages

U.S. car market is recovering, but at a slower pace

Executing 2018 Growth Strategy

Broad-based Momentum established

Volkswagen brand improvements beginning to emerge across

Business

Brand, Quality, Customer Experience

Financial move towards Break-even

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U.S. Volkswagen Brand Sales Development 2010-2011

Source: Autodata Motor Intelligence, Jan. 2012

December YTD 2010Market Share: 2.2%

December YTD 2011Market Share: 2.5%

+26%256,830

324,400

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Total Market Segmentation 2011 vs. 2010

16

ChangesinUnits

Changes

in%

Total SegmentVolume [in 1,000]

(33,277) (31,523) (30,101) (8,181) (7,304)

4,183 4,575 12,24417,088 20,876

31,669

79,42595,686

149,791 153,757

202,536223,228

261,086

(50,000)

0

50,000

100,000

150,000

200,000

250,000

300,000

478.3 901.1 98.9 20.5 170.1 300.9 43.5 472.4 222.1 124.5 297.9 167.4 811.3 1152.7 1519.0 2142.5 1449.4 1773.9

-6.5% -3.4%

-23.3%-28.5%

-4.1%

1.4%11.8%

2.7%8.3%

20.1%11.9%

90.3%

13.4% 14.9% 11.3% 10.4%18.2% 17.3%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

VW Growth Segments

Source: Autodata Motor Intelligence, Jan. 2012


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Volkswagen U.S. Sales Development 1952 - 2011 & Target

17

200

400

800

600

(000) 800 k in 2018

> 324 kin 2011

Source: Internal


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Foundations to Fix Underperformance in U.S. Market

Sustainable profitabilityConsumer First choice

800,000 unit sales

20182011

Product

Deliveries toCustomers

Challenges

VWG

oals

Focus

20182011 2011 201820182011 20182011Q3

Consideration Initial Quality (IQS) LoyaltyThroughput

per dealerUsed VW Car sales

2011Q3

2018

BrandDevelopment

Quality CustomerExperience

Network UsedCars/Fleet

Source: Volkswagen Group of America, Inc.

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Product Portfolio Continues to Develop

Passat Beetle Jetta GLI

Golf R Tiguan

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CC


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Passat Delivers Volkswagen Core Values

Brand Positioning

Brand InsightPeople love our

brand. They justdont buy our cars.

BetterEngineering

for All Product InsightGiving people a

ration alibi, bydelivering better

engineering at anaffordable price.

Human InsightPeople want

permission to buy

what they desire.

Core Tenets

Elevating Every Segment

Committed to Delivering Better

Engineering

Technology

Fit and Finish

Handling and DriverExperience

Priced within Reach

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Creating Brand Momentum Prior to the Passat LaunchKey 2011 Brand Momentum Moments

Source: Volkswagen Group of America, Inc., Polk, Urban Science

Think Blue

Brand Campaign

Global Beetle

Super Bowl

Chattanooga

Oprah

Metric Results11 vs. 10

Brand Sales +26%

Jetta Sales +54%

Jetta Leads +79%

Brand Leads +57%

Jetta

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Passat Priced for the Market

Passat2.5L

PassatTDI

PassatV6

Passat2010

Camry Accord Altima Fusion Malibu Sonata

$32,950

$19,995

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Quality & Safety Awards

Best Full-line Manufacturer

Small Multi-Function

GolfMid-Size Car Jetta

Entry Utility Tiguan

Volkswagen ranks 2nd among Volume Makes

Compact Sporty Car GTI & EOS

Compact Car

Golf & Jetta

Compact Crossover SUV Tiguan

Entry Premium Car CC

Mid-Size Premium Crossover SUV Touareg

IIHS Top Safety Pick Award:

2012 Volkswagen Passat

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Key Profit Drivers

Introduction of products in the sweet spot of their segmentsProduct

Competitive entry prices while maintaining price premiumRevenue management

Pricing

Increase of localized cars to 75% for Volkswagen BrandHigh localization of parts and componentsLocalization of carsand components

Localized MDO (Market Delivery Options) strategyIncrease revenue per car

Parts & Accessories

Leveraging efficiencies of the group:- Marketing/IT/FacilitiesCost Efficiencies

Integrated customer approachLocal funding

Financial Services

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Financial Highlights 2011

Jetta Success

Passat and Beetle Launch

Revenue per Car Increase

Incentive Reduction

Marketing Efficiencies

Parts Business

Increase of Used Car ProceedsSuccessful Local Funding

Improved Dealer Profitability

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Local Content of Passat, Jetta, Beetle

Passat Jetta / Beetle

85%85%

Local ContentLocal Content

Sourcing in North America

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Volkswagen incentives are 16% lower year over year and 29%below the industry average (December YTD)

-29%-16%

IndustryDodgeChryslerMitChev

2,000

Ford

1,000

Nissan0

HondaToyotaMazdaKia

4,000

Hyundai

3,000

CYTD 2011CYTD 2010

Source: AutoData Motor Intelligence; Jan. 2012

USD / unit

IndustryAverage

VW CYTD 2011

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Dealer Profitability & Value of the Volkswagen BrandFranchise

Volkswagen brand ranks 3 in dealer confidence

in the value of the franchise (next 12 months)

Return on Sales

VW National 10 vs. 11

Source: Volkswagen Group of America, Inc.; National Automobile Dealers Association, 2011

in %

2.4%

2.2%

Nov. YTD 2011

Nov. YTD 2010

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Volkswagen in the U.S.: An Evolving Growth StoryDeutsche Bank Global Auto Industry Conference

Michael Lohscheller EVP & CFO, Volkswagen Group of America, Inc.

Detroit, 10 January 2012

volkswagen+in+the+us+ +an+evolving+growth+story

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