VOLKSWAGEN AG: Half-Yearly Financial Report 2010

VOLKSWAGEN AG / Interim Report

29.07.2010 10:33

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Half-Yearly Financial Report 2010:
  
- Volkswagen Group performs significantly better than expected in the 
  first half of 2010
  
- At EUR 2.8 billion, operating profit up EUR 1.6 billion on the weak 
  prior-year figure
  
- Significant increase in profit before tax to EUR 2.6 billion 
  (EUR 0.8 billion)
  
- Group sales revenue up 20.7 percent year-on-year at EUR 61.8 billion
  
- Cash flows from operating activities in the Automotive Division 
  increased by EUR 0.9 billion year-on-year to EUR 7.3 billion; ratio of 
  investments in property, plant and equipment (capex) to sales revenue 
  amounts to 3.5 percent (5.6 percent)
  
- Cash inflow of EUR 1.1 billion in the second quarter of 2010 from the 
  capital increase (total volume EUR 4.1 billion)
  
- Automotive Division net liquidity remains at a high level of 
  EUR 17.5 billion
  
- Compelling Volkswagen Group models:
  - At 3.6 million vehicles, Group deliveries to customers 15.8 percent 
    higher than in the previous year; global market share improves to 
    11.7 percent (11.6 percent)
  
  - Demand for Group models in China, Western Europe, North and South 
    America remains high
  
  - The electrically powered Golf blue-e-motion and 'Milano Taxi' concept 
    cars demonstrate emission-free mobility
  
  - Volkswagen Passenger Cars brand celebrates world premieres of the new 
    Touran and the new Jetta; updated Phaeton offers compelling technical 
    innovations
  
  - Audi celebrates the launch of the new Audi A8 and unveils the 
    Audi A8 L with long wheelbase and twelve-cylinder engine
  
  - Volkswagen Tiguan with extended wheelbase makes debut on the Chinese 
    market; Polo saloon premieres in Russia
  
  - Successful launch of SEAT Ibiza ST
  
  - Amarok pick-up from Volkswagen Commercial Vehicles celebrates 
    premiere in Germany

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January-June                                       2010     2009  +/- (%)
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Volkswagen Group:
  
Deliveries to customers            '000 units     3,613    3,119   + 15.8
Vehicle sales                      '000 units     3,566    3,008   + 18.6
Production                         '000 units     3,586    2,823   + 27.0
Employees                     June 30/Dec. 31   377,074  368,500   +  2.3
  
  
Sales revenue                     EUR million    61,809   51,202   + 20.7
  
Operating profit                  EUR million     2,841    1,240        x
Profit before tax                 EUR million     2,624      803        x
Profit after tax                  EUR million     1,824      494        x
  
  
Automotive Division (including allocation of consolidation adjustments
between the Automotive and Financial Services divisions):
  
Cash flows from operating
  activities                       EUR million    7,264    6,413   + 13.3
Cash flows from investing
  activities*)                     EUR million    4,518    2,100        x
Net liquidity at June 30           EUR million   17,501   12,308   + 42.2
Net liquidity at June 30/Dec. 31   EUR million   17,501   10,636   + 64.5
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*) Excluding acquisition and disposal of equity investments:
   EUR 2,608 million (previous year: EUR 3,381 million).
  
  
  
Our presence in all the key regions around the world, the multi-brand 
strategy, our technological expertise and the most up-to-date, most 
environmentally friendly and broadest vehicle range that has resulted 
from that expertise are key advantages for our Company. The Volkswagen 
Group's nine brands will again unveil a large number of new models in the 
second half of 2010, thus systematically extending our position in the 
global markets. We therefore anticipate that our deliveries to customers 
will be significantly higher than in 2009, due among other factors to the 
positive business growth in China.
  
The dynamic growth in the Volkswagen Group's sales revenue and earnings 
in the first half of 2010 will not continue undiminished in the second 
half of the year. Nevertheless, we believe that our sales revenue and the 
Group's operating profit in 2010 will be significantly higher than last 
year's figures, despite shifts in volumes between the markets. In 
addition, exchange rate effects will have a positive effect on earnings.
We will also continue to focus on disciplined cost and investment 
management and the continuous optimization of our processes. In doing so, 
we will systematically pursue the core elements of the '18 plus' strategy 
- ecological relevance and the return on our vehicle projects.
  
Wolfsburg, July 29, 2010
  
Volkswagen AG - The Board of Management
  
  
(The full interim report is available at 'www.volkswagenag.com/ir')
  
  
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 the actual developments may differ from those forecast.
  
Consequently, any unexpected fall in demand or economic stagnation in our 
key sales markets, such as Western Europe (and especially Germany) or in 
the USA, Brazil, China, or Russia 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, Russian ruble, Mexican peso, Swedish krona, Australian dollar, 
Swiss franc, Japanese yen, Brazilian real, Polish zloty, Chinese renminbi 
and Czech koruna. In addition, expected business development may vary if 
the assessments of value-enhancing factors and risks presented in the 
2009 Annual Report develop in a way other than we are currently 
expecting, or additional risks or other factors emerge that adversely 
affect the development of our business.


29.07.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:           English
Company:            VOLKSWAGEN AG
                    Brieffach 1849
                    38436 Wolfsburg
                    Deutschland
Phone:              +49 (0)5361 9 - 49840
Fax:                +49 (0)5361 9 - 30411
E-mail:             christine.ritz@volkswagen.de
Internet:           www.volkswagenag.com/ir
ISIN:               DE0007664039, DE0007664005
Indices:            DAX, Euro Stoxx 50
Listed:             Regulierter Markt in Berlin, Frankfurt (Prime
                    Standard), München, Hannover, Hamburg, Düsseldorf,
                    Stuttgart; Terminbörse EUREX; Foreign Exchange(s)
                    London, Luxembourg, SIX
Category Code:      IR
LSE Ticker:         VKW
Sequence Number:    530
Time of Receipt:    Jul 29, 2010 10:00:25
 
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