Group Strategy (K-GS) Status: June 7th, 2016

Shaping the future of the Volkswagen Group

Contribution T. Sedran Wolfsburg, June 16, 2016

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SHAPING THE FUTURE OF THE

VOLKSWAGEN GROUP

Group Strategy (K-GS) Status: June 7th, 2016 2

The following presentations contain 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 renminbi 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 Such statements are valid on the date of publication and can be superceded.

This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

DISCLAIMER

Group Strategy (K-GS)

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16 GROUP INITIATIVES – OVERVIEW

Secure funding

14 15 Drive digital tranformation

Create organization 4.0 Strengthen

innovation power

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3

4

5

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10

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Sharpen positioning of brands

Develop winning vehicle and drivetrain portfolio

Streamline modular architectures

Partner with regional players to win in economy segment

Develop self-driving system for autonomous vehicles and artificial intelligence

Develop battery technology as new core competency

Implement model line organization

Realign „Components“ business

Build mobility solutions business

Develop and expand attractive and profitable smart mobility offering Tranform

core business

Build mobility solutions

business

Improve operational excellence

Optimize business portfolio

GROW PROFITABLY

DEVELOP STRATEGIC CAPABILITIES

ENHANCE ENTREPRE-NEURIAL SPIRIT

Develop best-in-class user experience across brands and customer touchpoints

16 Integrate strategy and planning process

Group Strategy (K-GS) Status: June 7th, 2016

Four types of potential action fields currently under investigation

Source: Volkswagen Brand Portfolio Review Project Team

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Key volume growth

areas in which VW group

is predicted not among

Top 3 in 2020

• China Economy

• India Economy

• ASEAN Volume

Unprofitable and/or

shrinking areas in which

VW group is predicted

among Top 3 in 2020

• SAM Volume

• Global A00

Key profit pools in

which VW group is

predicted not among

Top 3 in 2020

• NAR SUV/CUV

• NAR Pick-Up

• JP/SK Volume

Key profit pools in which

VW group is predicted

among Top 3 in 2020

• China Volume,

Prem./Lux.

• WEU Volume,

Prem./Lux.

Tap volume growth Review position Tap profit pool Protect position

FOUR TYPES OF POTENTIAL ACTION FIELDS CURRENTLY UNDER INVESTIGATION

Unprofitable and/or shrinking areas in which Volkswagen group is predicted among Top 3 in 2020

• SAM Volume

• Global A00

Tap volume growth Review position Tap profit pool Protect position

Key profit pools in which Volkswagen group is predicted among Top 3 in 2020

• China Volume, Prem./Lux.

• WEU Volume, Prem./Lux.

Key volume growth areas in which Volkswagen group is predicted not among Top 3 in 2020

• China Economy

• India Economy

• ASEAN Volume

Key profit pools in which Volkswagen group is predicted not among Top 3 in 2020

• NAR SUV/CUV

• NAR Pick-Up

• Japan/South Korea Volume

Source: Volkswagen Brand Portfolio Review Project Team

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Group Strategy (K-GS) Status: June 7th, 2016

To wrap it up: First, a big thank you to this terrific team of more than 250

experts who got us to this point

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Group initiatives Brand strategies Functional strategies

K-GS

~50

K-S

K-B

K-GP K-GV

K-F K-I

K-GQ K-GE K-SI

>100 ~100

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TO WRAP IT UP: FIRST, A BIG THANK YOU TO THIS TERRIFIC TEAM OF MORE THAN 250 EXPERTS WHO GOT US TO THIS POINT

1. Group initiatives 2. Brand strategies 3. Functional strategies 4. K-GS

K-S

K-B

K-GP K-GV

K-F K-I

K-GQ K-GE K-SI

+ + + ~50 ~100 >100

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