Volkswagen Group Presentation

Non Deal Debt Investor Update

January 2024
1
Disclaimer
The following presentations as well as remarks/comments and explanations in this context contain forward-looking
statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to
the development of the economic, political and legal environment in individual countries, economic regions and markets,
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. All figures are rounded, so minor discrepancies may arise from addition of
these amounts.

At the time of preparing these presentations, it is not yet possible to conclusively assess the specific effects of the latest
developments in the Russia-Ukraine conflict on the Volkswagen Group’s business, nor is it possible to predict with
sufficient certainty to what extent further escalation of the Russia-Ukraine conflict will impact on the global economy and
growth in the industry in fiscal year 2023.

Any changes in significant parameters relating to our key sales markets, or any significant shifts in exchange rates, energy
and other commodities or the supply with parts relevant to the Volkswagen Group will have a corresponding effect on the
development of our business. In addition, there may also be departures from our expected business development if the
assessments of the factors influencing sustainable value enhancement and of risks and opportunities presented 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.

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be superseded.

This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.
2
Volkswagen Group delivered 9.24 million vehicles in 2023

Deliveries [‘000 units / per month]

900 2022 2023

800

700

600

500

400
01 02 03 04 05 06 07 08 09 10 11 12

Global deliveries BEV deliveries Slovenia flooding

Q4 +14% YoY increased by impacted production by
FY23 +12% YoY +35% YoY in 2023 >100k units in H2 2023
3
771k BEVs were delivered to customers in 2023 (+35%)
FY23 target of 8 to 10% achieved at lower part of range

Quarterly Development BEV share increased to 8.3% in 2023

10%
BEV Deliveries [‘000 units] BEV share [%] 2023 BEV Share [%]
8.3%
9%
8% 240
7% 210 206
6.9%
181 5.1%
141 149
118 122
99 108

60 58
33 30

Q1 Q2 Q3 Q4 2021 2022 2023

2021 2022 2023 4
Volkswagen Group
2023 1 Guidance firmly in sight
Actual 9M Outlook
2022 1 2023 2023 2

Deliveries to customers 8.3m vehicles 6.7m vehicles 9.24m vehicles

(+11%) (+12% - outlook was 9.0m to 9.5m)

Sales revenue € 279.2bn € 235.1bn € 307bn to € 321bn

(+16%) (+10% to +15%)

€22.5 bn € 16.2 bn around level of previous

Operating result (bef. special items) 3 (8.1%) (6.9% - underlying 8.0%) year

Automotive Investment ratio 4 13.7% 12.5% ~ 14.5%

Automotive Reported Net Cash flow € 4.8bn 5 € 4.9bn € 6bn to € 8bn 6

(expected at lower end of the range)

Automotive Net Liquidity € 43.0bn 7 € 36.7bn € 35bn to € 40bn

1. Previous year adjusted (IFRS 17) I 2. The Russia-Ukraine conflict has created considerable uncertainty, particularly with regard to the potential impact of the actions of the political players, primarily where the duration, intensity and allocation of energy supplies and their impact on the supply chain are concerned. Particularly, the
supply of energy, other raw materials and parts for the production process could result in greater constraints, especially in Europe, where a gas shortage is possible. Higher energy and commodity prices plus greater volatility could add to the strain. Furthermore, inflation rates could reduce purchasing power, adversely affect
consumer behavior and put a damper on demand for our products. Moreover, the need might arise to recognize further impairment losses on assets and additional risk provisions I 3. Before special items I 4. R&D & Capex combined I 5. Including cash outflows in connection with the EU antitrust proceedings against Scania I
6. Including about € 5bn budgeted for M&A I 7. Total Net Liquidity of € 43bn including € 16.1bn Porsche IPO proceeds of which Porsche IPO special dividend of € 6.5bn (net); payout in January 2023 5
 Unrivalled portfolio with significant upside potential
LUXURY
FOCUS

VALUE
ORIENTATION
Functional Modern Postmodern
6
Steering framework for Group management

Proof points YTD

Core Progressive Sport Luxury Truck & Bus
• 100%TechCo teams up with
ThunderSoft and Horizon Robotics
• Progress in CARIAD realignment,
Architecture intensified tech partnerships and
“local-for-local” approach
• Dry Coating of battery cells as
Software game changer driving down costs
• CMD ‘23: Strategic alignment and
launch of performance programs
Battery, Energy & Charging • Cooperations with Xpeng and
SAIC for the China business
• PowerCo and Umicore JV:
Volkswagen Group Mobility IONWAY as leading European
supplier of battery raw materials

7
Latest achievements: Delivery on our CMD promises

1 Software: Clear restructuring plan for CARIAD

2 China: Localization strategy is unfolding, next step China CMD in April 2024

3 New steering model: management remuneration aligned to NCF and Brand Group KPI

4 ESG: Independent China audit conducted in 12/23; MSCI red flag removed

5 Financials: VW brand performance program on track; important milestone reached

before X-mas break
8
 Overview of financing entities of the Volkswagen Group

Issuing Entities Volkswagen AG not

guaranteed guaranteed
Volkswagen Aktiengesellschaft*
Volkswagen International Finance N.V. 
Volkswagen Group of America Finance, LLP
Volkswagen Credit Canada Inc. / Crédit VW Canada, Inc

 not
guaranteed
 not
guaranteed
Issuing Entities TRATON SE
guaranteed
TRATON SE* Issuing Entities Volkswagen FS
TRATON Finance Luxembourg S.A.
TRATON Treasury AB Volkswagen Bank GmbH

 not
guaranteed
Volkswagen Financial Services AG*
guaranteed Volkswagen Leasing GmbH

guaranteed Volkswagen Financial Services N.V.

Issuing Entities Scania AB Volkswagen Financial Services Japan Ltd.
Volkswagen Financial Services Australia Pty Ltd.
Scania CV AB

A “Control and Profit & Loss Transfer Agreement” between VWAG and the German subsidiaries is in place.
*Parent company cannot guarantee act as Guarantor for itself
9
INTERNAL
 Well balanced debt maturity profile with a focus on shorter duration

Volkswagen Group’s Funding Mix in % (as of December 31, 2023)

[€ bn] 12 months breakdown (as of December 31, 2023)
Commercial Papers
7.7
Bond/MTN
Bonds Hybrid

28.6 4.7
4.6
3.3
11.1
2.8 2.7
2.9
20.7 2.2
1.3 1.5 1.5
3.0 1.0 1.0 0.8
1.1
1.9
1.3 1.3 0.4
15.3
Jan-24 Feb- Mar- Apr-24 May- Jun-24 Jul-24 Aug- Sep- Oct-24 Nov- Dec-
11.6 11.1 24 24 24 24 24 24 24
19.2
16.3
13.5 6.7
8.6 8.6 6.1
5.2 4.7 3.0 2.1
1.7 1.5 1.3
1.3 1.5 1.8 3.0 2.5 1.5 1.4 1.3
0.2 0.3 0.3 0.2
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2038 2039 2041 2043

Sums may differ due to rounding effects.

10
INTERNAL
 International capital market presence characterized by
a diversified mix of currencies and tenors
Volkswagen Group’s Capital Market Borrowings Diversification of Unsecured Funding (as of December 31, 2023)
Top 5 Currency Breakdown Commercial Paper and Bonds (excl. Hybrid) Fix vs. Float Bonds (excl. Hybrid)

EUR
3.7% USD 11.2%
7.3% 3.1%
GBP
SEK
CAD

21.5%

64.4%

Fixed
Floating 88.8%

Sums may differ due to rounding effects.

11
INTERNAL
 Hybrid Bonds are an integral and highly strategic part
of Volkswagen Group’s capital structure
Hybrid Capital within the Volkswagen Group1

Provides 100% IFRS equity without diluting existing shareholders

Long-term commitment towards hybrid capital supporting Volkswagen Group’s credit metrics such as Net Industrial Liquidity

Well diversified maturity profile

€ bn
3
3.0

2
2.0 2
2 2 2 1
1 1
1 1
1.0 1

2024 2025 2026 2027 2028 2029 2030 2031 2032

1. First call dates of hybrids are shown in the table, as of 12/23

12
INTERNAL
 Volkswagen Group is a well-established issuer
in the Green Bond market
Green Bond Redemption Profile1
Green Bonds Conventional Bonds
30

20

10

0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

Further Information on Volkswagen’s Green Bonds

Volkswagen Group -
Volkswagen Group – Volkswagen Group - Green Finance
ESG Figures (including Green Finance Framework 2022 -
PAI Indicators) Framework 2022 Second-Party
volkswagenag.com volkswagenag.com Opinion.pdf
volkswagenag.com

1. Includes all outstanding bonds from the Volkswagen Automotive Division (hybrids shown on first call dates) and Financial Services Division, as of 12/23
13
INTERNAL
The Key to Mobility
Creating Value with Volkswagen Financial Services
Investor Update Volkswagen Financial Services
January 2024
 Disclaimer
The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on
the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the
economic, political and legal environment in individual countries, economic regions and markets, 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. All figures are
rounded, so minor discrepancies may arise from addition of these amounts.
At the time of preparing these presentations, it is not yet possible to conclusively assess the specific effects of the latest
developments in the Russia-Ukraine conflict on the Volkswagen Group’s business, nor is it possible to predict with sufficient
certainty to what extent further escalation of the Russia-Ukraine conflict will impact on the global economy and growth in the
industry in fiscal year 2023.
Any changes in significant parameters relating to our key sales markets, or any significant shifts in exchange rates, energy and other
commodities or the supply with parts relevant to the Volkswagen Group will have a corresponding effect on the development of our
business. In addition, there may also be departures from our expected business development if the assessments of the factors
influencing sustainable value enhancement and of risks and opportunities presented 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.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be
superseded.
This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

Under the brand “Volkswagen Financial Services – the key to mobility“ the subsidiaries of Volkswagen Financial Services AG as well
as its sister company Volkswagen Bank GmbH render various services under the joint brand "Volkswagen Financial Services". Such
services are banking services (through Volkswagen Bank GmbH), leasing services (through Volkswagen Leasing GmbH), insurance
services (through Volkswagen Versicherung AG, Volkswagen Autoversicherung AG) as well as mobility services (inter alia through
Volkswagen Leasing GmbH). In addition, insurance products of other providers are offered.

2
INTERNAL
Volkswagen Financial Services will offer the platform for mobility solutions
based on Volkswagen Group‘s NEW AUTO strategy

Core Progressive Sport Luxury Truck & Bus

Architecture

Software

Battery, Energy & Charging

Volkswagen Group Mobility

3
Volkswagen Financial Services will in future be placing an additional focus on the
Vehicle on Demand business

Core Products Vehicle on Demand Focus

The right offer at any
time
3-5 2-4 days/ hours/
Time years years months weeks minutes

Growing portfolio of
mobility solutions

Product Cash Financing Leasing Subscription Rent Instant

Mobility*
Support for all Group
brands

Product range mobility platform

* Instant Mobility (mainly from third-party providers): sharing (eScooter, bicycle, car), hailing (incl. taxi), pooling, public transport
4
Financial Performance as of 30.06.2023

Volkswagen Financial Services*

€ 1.76 bn 21.7 mn 255 bn

Operating Profit Contracts Total Assets

Volkswagen Bank GmbH Volkswagen Financial Services AG

Total assets € 70.4 bn Total assets € 138.2 bn
Customer deposits € 34.6 bn Operating profit € 768 mn
Operating profit € 359 mn Contracts (units) 15.9 mn
Contracts (units) 3.2 mn
* VolkswagenFinancial Services are a business segment of the Volkswagen AG group and comprise Volkswagen Financial Services AG along with its associated companies,
Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada.

5
Operating Result Volkswagen Financial Services

6,00
5.67 5.60

5,00

4,00

2.96 2.80
3,00 2.61

2,00

1,00

0,00
2018 2019 2020 2021 2022 FC 2023 FC 2024

Risk Cost Effects

Corona Semiconductor Normalizing

Pandemic Shortage Risk Cost Situation
6
Avg. earning assets increase while asset based portfolio remains stable

208,971 209,634
197,103
190,177

26,110
21,662 23,937
20,461

11,201 11,327 10,921 10,340

2019 2020 2021 2022

Asset Based Portfolio in Thd Avg. Earning Assets in € Mio. Avg. Earning Assets per New Contract in EUR

7
 Volkswagen’s resilient manager of assets and related risks
serving as anchor of stability

Credit loss ratio historically on a very low level

Proven crisis resilience:
• No significant influence of past Credit risk situation
crises on credit risk until now. will remain
challenging due to
• Credit losses currently and
crisis situation in the
historically on a very low level
(0.31% as of 30 June 2023). Ukraine and expected
Provision- vs. Loss Ratio increasing inflation
• Credit risks appropriately covered and interest rates.
by provisions.

8
• Positive trend in the development of Volkswagen’s resilient manager of related risks serving as
used car prices related to an anchor of stability
increased demand in the used car
market.
• The peak in used car prices is Re-marketing situation used cars
already left behind in most markets,
Residual Value
but remain on a quite high level in
the first months.
• Higher used car sales prices over a
long time implicates an sustainable
positive effect on Residual Values
up to 1 – 3%-points.
• We adapt this in our Residual Value
prognosis for new business on
model level.
Forecast:
• Even in the beginning of 2023 the
still high used car prices had a
positive effect on our operating profit
but in the further course of the year
this will be lower than in 2022.
9
Interest rate risk management at Volkswagen Financial Services

Min. 80% matched funding.

No currency risk:
- In prinicple refinancing is carried out in local currency.
- If not in local currency, the currency risk is fully hedged.

Extraordinary interest rate risk in 2022 and 2023 due to rising interest rates between conclusion
of contract and delayed delivery.

10
S T R AT E G I C
DIMENSIONS

11
OBJECTIVE: We maximize customer loyalty to the
Volkswagen Group Brands

Loyal customers …
… are cheaper to retain … spend more … are better multipliers

… are happy customers … keep coming back … stay in our ecosystem

12
OBJECTIVE: We own Volkswagen Group’s car parc.
We unlock business potential throughout the vehicle’s lifecycle
together with the Group Brands
A holistic approach of the Vehicle Lifetime Concept means …
… long-term customer loyalty … further source of income … increase in volume

… stabilization of RV … maximize used car potential … access to raw material

13
OBJECTIVE: We leverage data and technology
as core enablers of our success

We need to match customers with the right vehicle …

But…

Customers don’t tell us what they want, so we use our DATA

Customers don’t wait for us to act, so we build MODERN SYSTEMS

14
OBJECTIVE: We act as entrepreneurs and strive
for the greatest possible success

Systems &
Profitability People
Processes

• Return on Equity • Sourcing • Employees

• Operating Income • Operational • Leaders
• CIR Excellence • Collaboration
• Transparency

15
OBJECTIVE: We drive the transition to emission-free mobility along
the Volkswagen Group’s ESG principles

We focus on the environmental aspect of sustainability and achieve

CO2 neutrality from our products and across our operations

Green Operations Green IT Green Products

16
 Volkswagen Financial Services Ratings
Corporate Ratings ESG Ratings
Low Risk

Credit Rating* S&P Moody‘s

VW FS BBB+ A3
• First external ESG audit with an extraordinary result.
VW Bank BBB+ A1 • Analysis of 5 aspects: Product Governance, Corporate Governance, Data
Privacy and Security, Business Ethics and Human Capital.
* Senior Unsecured Rating • Ranked within the best 3 % of peer group in sector Consumer Finance.

• Stable Credit Rating in the investment grade from

S&P and Moody‘s.

• Second external ESG audit with a solid result.

• Analysis of 3 aspects + Prepardness Opinion: Environmental Profile, Social
Profile, Governance Profile.
17
Volkswagen Financial Services provides the mobility platform for the Volkswagen Group

Mobility platform
offering… Brand customers in brand design Multi-brand Mobility brand

... user interface Dealer Web Customer ID App

(incl. brand & Profile
integration),
CRM & pricing

VEHICLE ON DEMAND

Financing Leasing Rental1 Instant Mobility2

… our core
products...
Insurance & Services
Used car re-marketing

… and vehicle 1. 4.
lifetime
management 2. 3.

1 Long/short-term rental, subscription, extended rental 2 Instant Mobility (mainly from third-party providers): sharing (eScooter, bicycle, car), hailing (incl. taxi), pooling, public transport

18
Vehicle Lifetime Management: A mobility provider needs to handle multiple life
cycles to generate future profit pools
Vehicle provision to end customer

Financial Services Vehicle-on-demand Mobility-on-demand

Vehicle
Sourcing 1st 2nd 3rd

New car Re-cycle

Multiple life cycle management

Used car

Re-use Re-market

Usage-related Vehicle-related Infrastructure

services services services

Source: Deloitte study, The future of automotive mobility, 2/2023 In-life services 19
Annual new car sales and an increasing VW FS share of Volkswagen’s car parc will
increase VW FS' refinancing demand

New Car
Approx. € 350 bn.
FS Penetration Balance sheet growth due to
BEV: 80% ICE: 50% increased assets in € bn

€ 240 bn.

Share of
Car Parc 2022 2023 2024 2025 2026 2027 2028 2029 2030
50%

Green in the sense of CO2-neutral use of the car, e.g. BEV

20
Impact of BEV Group deliveries on VW FS Portfolio and Balance Sheet

BEV group deliveries to customers increase …

ICE BEV
In addition, used car share of new contracts is
increasing and leads to a growing portfolio

2023 2024 2025 2026 2027 2028 2029 2030

… while VW FS BEV Penetration increases, too.

ICE BEV
80%

50%

2023 2024 2025 2026 2027 2028 2029 2030

21
VW FS AG and VW Bank GmbH are currently separate subsidiaries of Volkswagen AG
Status quo

Volkswagen AG

VCI/
Volkswagen Financial Services AG Volkswagen Bank GmbH PFS
VCCI

VW European and Individual

international Funding restriction due
Leasing subsidiaries
GmbH VW FS
(insurance, to large exposure limit
subsidiaries
other
subsidiaries)

Reporting group Volkswagen Financial Services

22
Target picture - Unchanged reporting structure of segment Volkswagen Financial Services

Volkswagen AG

VCI/
Volkswagen Financial Services PFS VCCI
EMG
Volkswagen Financial Services AG
Overseas AG
Volkwagen VW Individual
Bank GmbH Finance holdings
Europe (insurance,
Volkswagen other holdings)
B.V.
Leasing
GmbH

= EU Financial Service
Provider

Reporting group Volkswagen Financial Services

➢ Usage of VW Bank‘s customer deposits to fund the planned growth path of the European business
➢ Sustainable group setup and governance structures, considering the changing regulatory environment
➢ Equity base of Volkswagen Financial Services sufficient even in the new structure
➢ Implementation of main steps planned until mid 2024
23
Volkswagen Financial Services organisational structure and guarantee scheme target picture

Volkswagen AG

Domination and Profit & Domination and Profit &

Loss Transfer Agreement Loss Transfer Agreement

Volkswagen Financial Services

Volkswagen Financial Services AG Overseas AG LoC

Guarantee
Domination &
PLTA VW Individual
Hard LoC Finance holdings
Volkswagen Financial Services Australia
Europe (insurance,
Volkwagen other holdings)
B.V. Volkswagen Financial Services Japan
Bank GmbH
Volkswagen Leasing S.A. de C.V., Mexico
Domination & Guarantee
PLTA1 Volkswagen Bank S.A., Mexico
Hard LoC
Volkswagen
Volkswagen
Financial
Leasing 1 Target Picture
Services N.V.
GmbH 24
Funding allocation of segment Volkswagen Financial Services as of 30.06.2023

Strategic Funding Mix 2030

Intercompany Asset-Backed
€ 24.3bn Securities Asset-Backed
Bank Borrowings
(12%) € 44.3bn Securities
20%
(23%) 25%
Banks &
Central Banks
€ 28.5bn
(15%)

€ 194.1bn Customer
Customer
Deposits
25%
Deposits
Commercial Paper €34.6bn
(18%)
€ 10.8bn
(6%) Bonds and
Commercial Paper
30%

Bonds
€ 51.6bn
(26%)
➢ Customer Deposits independent from corporate rating !

25
Strong business growth needs a strong refinancing strategy
Core element is the increase of customer deposits in Europe

Strategic Funding Mix of Volkswagen Financial Services

Europe

ABS
Customer ABS
Deposits Customer
Deposits
Capital Markets
Capital
Markets

Non-Europe

Bank ABS Bank

ABS
Borrowings Borrowings

Capital Markets

Capital
Markets

26
Worldwide DCM activities of Volkswagen Financial Services

VW Financial Services Polska

VW FS Group
PLN 5 bn Debt Instrument
€ 7,5 bn CP Program Issuance Program
€ 50 bn Debt Issuance Program
VW Bank
€ 2.5 bn CP Program
VW Leasing Mexico € 10 bn Debt Issuance Program
MXN 25 bn Dual CP + MTN Program
VW Bank Mexico
MXN 7 bn Debt Issuance Program
VW FS Korea
Domestic KRW Bond
Issuances

VW FS Japan
JPY 60 bn ECP Program

VW Finance (China)
Domestic RMB Bond
Issuances
Banco VW Brazil
Domestic Letra Financeira
LM Transportes VDF / VDF Filo Turkey
Domestic Debentures Domestic TRY Bond
VW FS Australia
Issuances
AUD 5 bn Debt Issuance Program

27
Green Bonds of Volkswagen Financial Services

• First Green Bond of Volkswagen Leasing GmbH successfully

placed on September 18th 2023.

• Total volume of triple tranche bond in September 2023 € 2 bn,

total volume of triple tranche bond in January 2024 € 2.75 bn.
Further green bonds in SEK und NOK.

• Refinancing of financial products for BEVs.

• Sustainability is part of VWFS‘ strategy Mobility2030 and

supports the sales of Volkswagen Group BEVs.

• Further information at
https://www.vwfs.com/en/investor-relations/volkswagen-financial-
services-ag/refinancing.html#
28
Worldwide ABS activities
VW Finans Sverige
Autofinance S.A. VW Leasing
VCL Master Sweden VCL programme
VCL Master
VW Leasing/DutchLease MAN Financial Services
VCL Master Trucknology VW Finance China
Driver China programme
VW FS UK VW Bank
Driver programme
Volkswagen New Mobility Services
Driver UK programme [VCL China One]
Driver UK Master Driver Master

VOLKSWAGEND’IETEREN FINANCE S.A. VW FS Polska

Driver Belgium Master VCL Master Poland DAC

VW FS Japan
VW Bank Spain Driver Japan programme
Driver España programme

Banco VW Brazil VW Bank Italy

Driver Brasil programme Driver Italia programme

Volkswagen Bank GmbH Programmes VW FS Australia

Driver Australia programme
Volkswagen Financial Services
Programmes Driver Australia Master

29
Thank you !
Volkswagen Financial Services
Gifhorner Str. 57
38112 Braunschweig
ir@vwfs.com