Société Générale Roadshow Hans Dieter Pötsch, Member of the Board of Management Volkswagen Aktiengesellschaft. Paris, 2 June 2008

Transcription

1 Société Générale Roadshow Hans Dieter Pötsch, Member of the Board of Management Volkswagen Aktiengesellschaft Paris, 2 June 2008

2 Agenda Operating Performance Emerging Markets Profitable Growth 2

3 Our roadmap to profitable growth Unique product and brand portfolio Excellent market position in Europe Growth opportunities in emerging markets Strong cost and capital discipline continues Ongoing focus on performance improvements ROI on track to a sustainable double digit level 3

4 All time high in deliveries to customers based on strong brands Deliveries to Customers by Brand 000 units 3,000 January April 2007 January April , % 2,000 1,984 2,140 1, % 1,153 1,255 1, % % % % % Volkswagen Volkswagen Audi Škoda Seat Bentley Commercial Group Passenger Car Vehicles 4

5 All time high in deliveries to customers with solid European base Deliveries to Customers by Market 000 units 3,000 January April 2007 January April , % 2,000 1,984 2,140 1,500 1, % 1,274 1, % % % Volkswagen Europe / North America South America/ Asia Pacific Group Remaining markets South Africa 5

6 Volkswagen Scirocco 6

7 Audi A4 Avant 7

8 Škoda Superb Audi TT Roadster 8

9 Seat Ibiza 9

10 Volkswagen Group Analysis by Business Line January March Sales Sales Revenue Operating Profit thousand vehicles/ million Volkswagen Passenger Cars Audi Škoda SEAT Bentley Commercial Vehicles VW China Other 1) Automotive Division Financial Services Volkswagen Group ,604 1, ,501 1,501 18,092 8,294 2,203 1, ,597-8,497 24,451 2,562 27,013 18,010 8,679 2,031 1, ,204-8,478 24,285 2,355 26, , , ) 2) ,085 1) The sales revenue and operating profit of the joint venture companies in China are not included in the figures for the Group. The Chinese companies are accounted for using the equity method and recorded an operating profit (proportionate) of 73 million ( 34 million). 2) Mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits

11 Cash Flows from Operating Activities and Cash Flows from Investing Activities million, Automotive Division 1) January March 2007 January March ,000 3,553 3,000 2,000 2,000 1,669 1,328 2,195 1, Cash flows from investing activities Cash flows from operating activities Cash flows from investing activities Cash flows from operating activities 1) Including allocation of consolidation adjustments between Automotive and Financial Services divisions. Excluding acquisitions and disposal of investments: Q1 1,269 ( 913) million 11

12 Outlook 2008 Volkswagen Group in 000 units / million Deliveries to customers 5,079 5,243 5,733 6,189 >6,189 Sales revenue 88,963 93, , ,897 >108,897 Operating profit 2,037 2,889 4,383 6,151 >6,151 2) 1) 2) 1) Restated; 2) before special items. We are assuming that deliveries to Volkswagen Group customers in 2008 will exceed the record levels achieved in the previous year. We are constantly improving our processes and systematically pursuing our disciplined approach to cost management. Together with the higher sales revenue resulting from the expected increase in unit sales, this will help lift our operating profit for 2008 above the previous year s figure. As a result of upfront expenditures on new products, powertrains and production facilities, the ratio of investments in property, plant and equipment (capex) to sales revenue will be at a competitive level of around 6%. Source: Volkswagen Aktiengesellschaft January March 2008 Interim Report 12

13 Agenda Operating Performance Emerging Markets Profitable Growth 13

14 Sales in BRIC- Markets contribute significantly Deliveries to Customers by Market 000 units % 613 January April 2007 January April % % % % BRIC Brazil Russia India China 14

15 Growing importance of Emerging Markets Sales in million units ( ) USA/CDN Western Europe Eastern Europe and Russia 6.7 Japan China Established Markets Emerging Markets Left: 2006 Right: SAM and Mexico Africa India ASEAN 6,6 8,6 Rest of World Source: POLK 15

16 Russia manufacturing: gateway to the east Cars by Segment million units A00 B A A % CAGR for total car market Volkswagen plant in Kaluga Production ramping up Aiming at 10% share by 2010 Initial product design aimed at A and A0 notchback segments Avoiding import duties of 25% on completed cars Agreement cuts duties on imported components from 14.5% to 3% for 8 years 16

17 India production: full steam ahead Cars by Segment Million units DELHI NEPAL CHINA BHUTAN 0.56 Mumbai Aurangabad 0.41 Pune B A A0 A % CAGR for total car market Initial product design aimed at A0 notchback & hatchback segments Local assembly since 2001 at Aurangabad Full scale production 2010 at Pune High local content needed to achieve economic results 17

18 Impressive product pipeline for fast-growing China Cars by Segment Million units Volkswagen Lavida 18% share in world s fastest growing market new models designed for the local market being introduced Cutting costs Improving consumer satisfaction B A A0 A % CAGR for total car market 18

19 Dedicated plan for profitable growth in the United States Sell 800,000 Volkswagen cars to loyal customers in 2018 VW Organization Dealer Network Local Production Brand Strategy Product Strategy Establish efficient and competitive organization Increase efficiency of of dealer network Manufacture US specific products locally Unique Positioning of of Brands Offer competitive product range with high quality 19

20 Financial Services to support growth in key markets India USA Total Cars Financed FS Penetration FS Setup Total Cars Financed FS Penetration FS Setup Maturity of the market ~80% none Russia Total Cars Financed FS Penetration none FS Setup ~90% ~70% China Total Cars Financed FS Penetration 100% own operation finance leasing FS Setup ~25% ~1% 100% own operation for finance Cooperation in retail fin ~15% ~15% 100% own operation finance only Volkswagen Group sales 20

21 Agenda Operating performance Emerging Markets Profitable Growth 21

22 Key drivers to optimise revenue growth Automotive Division Revenues ( bn) Key Drivers Volume growth paced to optimise ROI Extension of product portfolio Expansion in new markets Penetrating new segments, filling in product gaps in mature markets Continuous innovations that attract and excite the consumer at acceptable retail price m 08 22

23 Key drivers to optimise profit growth Automotive Division Operating Profit ( bn) Key Drivers Strong cost control Process optimisation Increased productivity Product optimisation Increased capacity utilization Regional scale effects 03* 04* 05* * Figures are before special items 06* 07 3m 08 23

24 Capital discipline supporting profitable growth Investments in Property, Plant & Equipment Automotive Division bn capex ratio in % of sales revenue % % Ø6.0% 5.0% 4.6% 3.8%

25 Net cash flow and net liquidity satisfactory Automotive Division bn Net cash flow Net liquidity Key Drivers Continuing cost control Improving profit situation Optimized working capital Ongoing investment discipline m 08 25

26 Return on Investment on the way to double-digit returns ROI in % Automotive Division Best in class Doubledigit returns 9.5 Target Minimum required rate of return 9% ,2) ) ) Before special items; 2) restated 26

27 APPENDIX

28 Volkswagen Group Headline Figures January March 2008/ /- (%) Deliveries to customers '000 units 1,572 1, ) 1) Production '000 units 1,649 1, Sales revenue million 27,013 26, Operating profit million 1,311 1, ,9 2) Automotive division Cash flows from operating activities million 2,195 3, ) Cash flows from investing activities million 1,328 1, Net cash flow million 867 1, Net liquidity at March 31 million 14,218 9, ) Volume data including the vehicle production investments Shanghai-Volkswagen Automotive Company Ltd. and FAW-Volkswagen Automotive Company Ltd. These companies are accounted for using the equity method. All figures shown are rounded, so minor discrepancies may arise from addition of these amounts deliveries updated on the basis of statistical extrapolations. 2) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. 3) Excluding acquisition and disposal of equity investments: Q1 1,269 million ( 913 million)

29 T o ta l R & D c o sts o f w h ic h c a p ita lize d a mo rti za ti o n re c o g n ize d in th e in c o me sta te me n t T o ta l R & D c o sts o f wh i c h c a p i ta li ze d a mo rtiza tio n re c o g n i ze d in th e in c o me sta te me n t Volkswagen Group Research and Development Costs million, Automotive Division 1,800 January March 2007 January March ,500 1, % 33.8% ,211 1,246 1,276 1, Total R&D costs of which capitalized amortization recognized in the income statement Total R&D costs of which capitalized amortization recognized in the income statement 30 29

30 Net Liquidity by Division as of January 1, 2008 as of March 31, ,478 14,218-52,378-52,924 Automotive 1) Financial Services 1) Including allocation of consolidation adjustments between the Automotive and Financial Services divisions

31 Volkswagen up! Passat CC 31

32 Volkswagen up! Routan 32

33 Audi A3 Cabriolet 33

34 Audi Q5 34

35 Škoda Fabia Combi 35

36 Volkswagen Caddy Life 36

37 Bentley Brooklands 37

38 Lamborghini Gallardo LP

39 Disclaimer 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 terms such as expects, anticipates, intends, plans, believes, seeks, estimates, will or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of 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 involve a degree of risk, and the actual developments may differ from those forecast. Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in Western Europe (and especially Germany) or in the USA, Brazil or China, will have a corresponding impact on the development of our business. The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, yen, Brazilian real, Chinese rinminbi and Czech koruna. If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from those expressed or implied by such statements. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superceded. 39