Volkswagen Group Records Profit Growth at All Brands in First Quarter

Wolfsburg, GERMANY – Volkswagen Group Continues Success Story. The Group delivered more vehicles, increased sales revenue and recorded a sharp rise in profit in the first quarter of 2008. “The success of our products shows that our new model rollout is meeting with an excellent response from our customers”, said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, on Wednesday, presenting the quarterly report. “At the same time, our process improvement efforts and our strict cost discipline are paying off”, added CFO Hans Dieter Pötsch.The Volkswagen Group delivered 1.57 million vehicles worldwide in the first three months, an increase of 7 percent. Sales revenue grew by 1.4 percent to €27.0 billion. Operating profit rose by 21 percent to €1.3 billion. Profit after tax was €929 million, an increase of approximately 26 percent. “In light of these figures, we can be very confident about the further development of our business”, according to Winterkorn.The strong acceptance of the Group’s attractive range of models was also reflected in the earnings power of the individual brands. “All of the Group's brands recorded an improvement in their operating profit”, said Pötsch. The Volkswagen Passenger Cars brand increased its operating profit to €461 million (€386 million) from January through March. The negative impact of unfavorable exchange rates was more than offset by the increase in sales volume and further improvements in material costs. The Audi brand reported year-on-year growth of €113 million to €514 million. The figures for the Lamborghini brand, which are contained in the key figures for Audi, recorded positive growth. The Škoda brand also increased its operating profit to €182 million (€172 million). Thanks to the continued earnings enhancement program, SEAT recorded an operating profit of €12 million, following an operating loss of €11 million in the prior year. The Bentley brand increased its operating profit to €39 million (€38 million). At Volkswagen Commercial Vehicles, the strong sales situation and cost optimization measures were reflected in an improvement in operating profit to €103 million (€66 million).The Financial Services Division again made a significant contribution to the Volkswagen Group's profit. At €276 million, its operating profit exceeded the previous year’s level by €18 million.Liquidity increased in the Automotive Division. Net liquidity improved by a further €0.7 billion compared with the 2007 year-end to €14.2 billion as a result of the improved profit situation and the continued disciplined investment strategy. The ratio of investments in property, plant and equipment (capex) to sales revenue remained below the long-term average at 3.9 percent (3.2 percent). For the current year, the Board of Management continues to expect business to develop positively despite the tough operating environment. New market segments are being developed and the product portfolio is being selectively expanded. As a result, deliveries to customers will be above the previous year’s record level. Demand for Group vehicles will increase substantially, especially in the Asia-Pacific, Central and Eastern Europe, and South America regions. Based on the continued disciplined cost management, improving processes and the new model rollout, the Volkswagen Group believes that it will exceed the previous year’s figures for deliveries, sales revenue and operating profit in 2008. The complete Interim Report is available at: http://www.volkswagenag.com/ir/Q1_2008_e.pdf

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