VOLKSWAGEN AG / Key word(s): Final Results 22.04.2016 15:03 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Volkswagen presents 2015 consolidated financial statements: - The emissions issue significantly impacted the Volkswagen Group's business in the 2015 reporting period - Deliveries to customers of 9.9 (10.1) million vehicles; declines in Brazil, China and Russia - increased demand mainly in Western Europe - Sales revenue up 5.4 percent year-on-year at EUR 213.3 billion; mix improvements and exchange rate effects as well as the positive performance by the Financial Services Division have a positive impact - Operating result of EUR -4.1 (EUR 12.7) billion; special items mainly relating to the diesel issue (EUR 16.2 billion) as well as the restructuring measures in the area of commercial vehicles and passenger cars (EUR 0.2 billion each) - At EUR 12.8 (EUR 12.7) billion, operating result before special items was at the prior-year level - Earnings before tax at EUR -1.3 (EUR 14.8) billion; share of profits of the equity-accounted Chinese joint ventures up year-on-year due to exchange rate effects; positive impact on the financial result from sale of Suzuki shares - Net cash flow in the Automotive Division up in comparison to 2014, at EUR 8.9 (EUR 6.1) billion; increase in net liquidity to EUR 24.5 (EUR 17.6) billion - Board of Management and Supervisory Board are proposing a dividend of EUR 0.11 per ordinary share and of EUR 0.17 per preferred share ------------------------------------------------------------------------- January-December 2015 2014 +/- (%) ------------------------------------------------------------------------- Volkswagen Group (IFRSs): Deliveries to customers '000 units 9,931 10,137 - 2.0 Vehicle sales '000 units 10,010 10,217 - 2.0 Production '000 units 10,017 10,213 - 1.9 Employees Dec. 31 610,076 592,586 + 3.0 Sales revenue EUR million 213,292 202,458 + 5.4 Operating result EUR million - 4,069 12,697 x Earnings before tax EUR million - 1,301 14,794 x Earnings after tax EUR million - 1,361 11,068 x Noncontrolling interests EUR million 10 84 - 88.5 Earnings attributable to shareholders of Volkswagen AG EUR million - 1,582 10,847 x Earnings per share (basic) - Ordinary shares EUR - 3.20 21.82 x - Preferred shares EUR - 3.09 21.88 x Automotive Division (including allocation of consolidation adjustments between the Automotive and Financial Services divisions): Cash flows from operating activities EUR million 23,796 21,593 + 10.2 Cash flows from investing activities attributable to operating activities*) EUR million 14,909 15,476 - 3.7 - of which investments in property, plant and equipment EUR million 12,738 11,495 + 10.8 Net liquidity at December 31 EUR million 24,522 17,639 + 39.0 ------------------------------------------------------------------------- Volkswagen AG (German Commercial Code): Net loss/income for the year EUR million - 5,515 2,476 x Dividend proposal: Dividend - per ordinary share EUR 0.11 4.80 - per preferred share EUR 0.17 4.86 ------------------------------------------------------------------------- *) Excluding acquisition and disposal of equity investments: EUR 17,270 million (previous year: EUR 15,719 million). Prospects for 2016: The Volkswagen Group's brands will press ahead with their product initiative in 2016, modernizing and expanding their offering by introducing new models. Our goal is to offer all customers the mobility and innovations they need, sustainably strengthening our competitive position in the process. We expect that, on the whole, deliveries to customers of the Volkswagen Group in 2016 will be on a level with the previous year amid persistently challenging market conditions, with a growing volume in China. In addition to the emissions issue, the highly competitive environment as well as interest rate and exchange rate volatility and fluctuations in raw materials prices all pose challenges. We anticipate positive effects from the efficiency programs implemented by all brands and from the modular toolkits. Depending on the economic conditions - particularly in South America and Russia - and the exchange rate developments and in light of the emissions issue, we expect 2016 sales revenue for the Volkswagen Group to be down by as much as 5 percent on the prior-year figure. In terms of the Group's operating result, we anticipate that the operating return on sales will be between 5.0 percent and 6.0 percent in 2016. In the Passenger Cars Business Area we expect a sharp decrease in sales revenue, with an operating return on sales in the anticipated range of 5.5 - 6.5 percent. With sales revenue in the Commercial Vehicles Business Area remaining essentially unchanged, we assume operating return on sales will be between 2.0 percent and 4.0 percent. We expect sales revenue in the Power Engineering Business Area to be perceptibly lower than the prior-year figure, with a significantly reduced operating result. For the Financial Services Division, we are forecasting sales revenue and the operating result at the prior-year level. Disciplined cost and investment management and the continuous optimization of our processes are integral elements of the Volkswagen Group's strategy. The Annual Media Conference and Investor Conference will take place on April 28, 2016 in Wolfsburg. Wolfsburg, April 22, 2016 VOLKSWAGEN AKTIENGESELLSCHAFT - The Board of Management This report contains forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic and legal environment in individual countries and economic regions, and in particular for 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 entail a degree of risk, and actual developments may differ from those forecast. Any changes in significant parameters relating to our key sales markets, or any significant shifts in exchange rates relevant to the Volkswagen Group, will have a corresponding effect on the development of our business. In addition, there may be departures from our expected business development if the assessments of the factors presented in this report develop in a way other than we are currently expecting, or if additional risks and opportunities or other factors emerge that affect the development of our business. 22.04.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: VOLKSWAGEN AG Brieffach 1849 38436 Wolfsburg Germany Phone: +49 (0)5361 9 - 49840 Fax: +49 (0)5361 9 - 30411 E-mail: [email protected] Internet: www.volkswagenag.com/ir ISIN: DE0007664039, DE0007664005 WKN: 766403, 766400 Indices: DAX, Euro Stoxx 50 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX; Luxemburg, SIX End of Announcement DGAP News-Service ---------------------------------------------------------------------------