Volkswagen : Interim Report January - March 2024

INTERIM REPORT

J A N UA R Y - M A R C H 2 0 24

Financial Key Performance Indicators

To our Shareholders

04 Letter to our Shareholders

08 The Board of Management of Volkswagen

1 Updated Information

Aktiengesellschaft

10 1 Key Figures

Report of the Supervisory Board

• Key Facts

• Group News

• Interim Group Management Report
  Divisions
• Volkswagen Shares

18 Brands and Business Fields

10 Business Development

21 Volkswagen Passenger Cars

22 Results of Operations, Financial

23 Škoda

Position and Net Assets

25 SEAT/CUPRA

29 Outlook

27 Volkswagen Commercial Vehicles

29 Audi

31 Porsche

33 TRATON GROUP

35 Volkswagen Group China

37 Volkswagen Financial Services

	Group Management
	Report
93	Goals and Strategies
31	Brands and
99	Internal Management System and
	Business Fields
	Key Performance Indicators

102 Structure and Business Activities

106 Disclosures Required Under Takeover Law

35109 InterimBusiness DevelConsolidatedpment

125 FinancialShares and BondsStatement

133 (Condensed)Results of Operations, Financial Position and

Net Assets

35 Income Statement

152 Volkswagen AG (condensed, in accordance

36 Statement of Comprehensive Income

with the German Commercial Code)

37 Balance Sheet

157 Sustainable Value Enhancement

38 Statement of Changes in Equity

196 EU Taxonomy

39 Cash Flow Statement

213 Report on Expected Developments

40 Notes

222 Report on Risks and Opportunities

61 Review Report

263 Outlook for 2024

			Consolidated
			Financial Statements
	Corporate Governance	267	Income Statement
	268	Statement of Comprehensive Income
41	Group Corporate Governance Declaration	270	Balance Sheet
272	Statement of Changes in Equity
56	Members of the Board of Management
273	Cash Flow Statement
58	Members of the Supervisory Board and
274	Notes
	Composition of the Committees
	442	Responsibility Statement
61	Remuneration Report
443	Independent Auditor's Report
		457	Auditor's report on the Remuneration Report

This document is an English translation of the original report written in AdditionalGerman. In case of discrepancies,Informationthe German version shall take precedence. All figures shown in the report are rounded, so minor discrepancies may arise from addition of these amounts. The figures from the previous fiscal year are459shown in parentheses directly after the figures for the

Five-Year Review

current reporting period.

460

Specified vehicle ranges correspond to results obtained through the Worldwide Harmonized Light Vehicles Test

461 Glossary

Procedure (WLTP) on the chassis dynamometer. WLTP value ranges for series-produced vehicles may vary depending on

464 Scheduled Dates the equipment. The actual range will deviate in practice depending on various other factors.

This Interim Report is also available on the Internet, in German and English, at: www.volkswagen-group.com/investor-relations

Updated Information

Key Figures

Key Figures

VOLKSWAGEN GROUP

			Operating Result &
Deliveries to customers	Vehicle sales	Sales revenue	Operating return on sales
in thousand units	in thousand units	in € billion	in € billion

						7.5%	6.1%
	+3%		-2%		-1%		-20%
2,041	2,104	2,124	2,081	76.2	75.5	5.7
		609	649				4.6
				-5%
		1,515	1,432	excl.
				Chin.
				JVs

Jan.-Mar.Jan.-Mar.	Jan.-Mar.Jan.-Mar.	Jan.-Mar.Jan.-Mar.	Jan.-Mar.Jan.-Mar.
2023	2024	2023	2024	2023	2024	2023	2024

AUTOMOTIVE DIVISION

Investment ratio	Net cash flow	Net liquidity
	in %		in € billion	in € billion
	14.4	2.2	-235%	40.3	-8%
		37.2
11.9
			-3.0
Jan.-Mar.Jan.-Mar.	Jan.-Mar.Jan.-Mar.	Dec. 31,	Mar. 31,
2023	2024	2023	2024	2023	2024

Volume data also includes the unconsolidated Chinese joint ventures (Chin. JVs); prior-year deliveries have been updated to reflect subsequent statistical trends. The allocation of consolidation adjustments between the Automotive and Financial Services divisions is included in the Automotive Division.

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Updated Information

Key Facts

Key Facts

• Deliveries to Volkswagen Group customers, including the Chinese joint ventures, increase to 2.1 (2.0) million vehicles in the first three months of 2024; Western Europe at the prior-year level; growth in all other sales regions worldwide
• Deliveries of all-electric vehicles to customers down slightly year-on-year(-3.3%) due to market-related factors and parts supply shortages; share of Group deliveries at 6.5 (6.9)%
• Group sales revenue down slightly year-on-year at €75.5 (76.2) billion
• Operating result down at €4.6 (5.7) billion, due mainly to factors related to unit sales and mix and to higher interest expenses in the Financial Services Division; effects from the fair value measurement of derivatives to which hedge accounting is not applied of €-0.4(-1.3) billion
• Earnings before tax decrease to €5.2 (6.5) billion; earnings after tax decline by €1.0 billion to €3.7 billion
• Automotive Division's net cash flow amounts to €-3.0 (2.2) billion; automotive investment ratio at 14.4 (11.9)%
• Net liquidity in the Automotive Division at robust level of €37.2 billion

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Updated Information

Group News

Group News

PRESENTATION OF NEW PRODUCTS AND TECHNOLOGIES

The Volkswagen Group and its brands showcased a variety of new vehicles and technologies in the first quarter of 2024.

At the Consumer Electronics Show (CES) in Las Vegas in early January 2024, the Volkswagen brand presented a Golf in which the chatbot ChatGPT, which is based on artificial intelligence (AI), is integrated into the IDA voice assistant. Current Volkswagen models and models of other Group brands based on the Modular Electric Drive Toolkit (MEB) and the enhanced Modular Transverse Toolkit (MQB Evo) and equipped with voice assistants

• including vehicles already in customers' hands - will gain access to the chatbot in the future. This will allow users to access the ever-growing database of artificial intelligence, to have information researched during the journey read aloud to them, and to interact with the vehicle using natural language. The new function, which is based on the Cerence Chat Pro program from our technology partner Cerence Inc., will gain no access whatsoever to vehicle data.
  The Volkswagen Passenger Cars brand celebrated the world premiere of the ID.7 Tourer in February 2024. The new crown jewel of the all-electric ID. family sets new standards in comfort and functionality with its high- performance drivetrain, long ranges, and spacious luggage compartment. The progressive fastback saloon is one of the first all-electric estate cars in the upper middle class. It offers space for five people and more than 600 liters of luggage. A high-quality cockpit, new automatic air conditioning system and climate-controlled seats with a pressure-point massage function offer a premium-class experience. In addition, the new Wellness In-Car app allows various vehicle functions to be adjusted by means of three preconfigured programs (Fresh Up, Calm Down and Power Break) that can help to enhance wellbeing during the journey or breaks. Depending on the vehicle's equipment, the app uses the ambient lighting, sound system, climate control, smart glass function, seat air conditioning and seat massage as well as the ID.LIGHT and the infotainment screen for this purpose. The ID.7 Tourer will be available with two battery sizes. The top-of-the-range version is expected to achieve ranges of up to 685 km.
  Inspired by the dynamic GTI, GTD and GTE models, Volkswagen is continuing to expand the range of sporty GTX variants in its all-electric ID. family. The highly dynamic ID.3 GTX and ID.7 GTX Tourer models will come with high-performance drivetrains, bespoke exterior design including their own front end and lighting signatures, and sporty interior design details. The ID. Buzz GTX will be available with a choice of two wheelbases and will offer optimal pulling power and traction in every driving situation thanks to the powerful 4MOTION all-wheel drive.
  To mark the 50th birthday of its iconic compact car, the Golf, the Volkswagen Passenger Cars brand presented an enhanced version of its bestseller. The new Golf impresses with a next-generation infotainment system, intuitive controls, the IDA voice assistant with integrated AI, a sharper front and rear end design, and efficient drivetrains. These include plug-in hybrid drives with an increased all-electric range of up to approximately 100 km. In addition, and for the first time on a Golf, the front of the vehicle is adorned with an illuminated Volkswagen

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Updated Information

Group News

logo. The exclusive Golf Edition 50 special-edition model rounds off the range and captivates with its 18-inch alloy wheels, tinted rear windows, an illuminated grill and 3D "50" badges on the B pillars. Inside, the exclusivity is underlined by details such as the "Edition 50" emblem in the front door sills and bottom steering wheel trim, pedal caps in brushed stainless steel and a black headliner.

Škoda presented an enhanced version of its bestseller, the Octavia, in the first quarter of 2024. The update to the fourth generation of the brand's biggest seller by far comes with a fresh design, a new grill and matrix LED headlights. The interior boasts an array of impressive equipment such as a 10-inch digital cockpit, a 13-inch infotainment display, the dual-zone Climatronic system and design features produced using even more sustainable materials. The AI chatbot ChatGPT is to be integrated as a standard feature in future. Additional safety and assistance systems optimize active and passive safety. With four petrol versions and two diesel engines plus mild hybrid options, power outputs range from 85 kW (115 PS) to 195 kW (265 PS). The Octavia remains available in hatchback and estate versions.

Škoda's flagship combustion-engine model has entered a new generation; the new Superb Combi offers enlarged dimensions and a host of new technologies. The vehicle impresses customers with its clean and practical interior design produced using sustainable materials, along with its intuitive controls and AI-supported infotainment. Innovative assistance systems, a new generation of matrix LED main headlights and Dynamic Chassis Control (DCC Plus) elevate safety. With improved aerodynamics and six modern drivetrain variants, the Superb Combi is more efficient than its predecessor. Power outputs range from 110 kW (150 PS) to 195 kW (265 PS). The powertrain line-up also includes a plug-in-hybrid with an electric range of up to around 100 km and a 1.5 l TSI with mild-hybrid technology.

Škoda has also extensively refreshed its successful compact models. Redesigned front and rear aprons give the Scala an even sportier appearance and the Kamiq a stronger SUV presence. The sharply drawn matrix LED headlights are available on both compact models for the first time. On top of this, both product lines feature a new interior design with sustainable materials. Three efficient combustion engines and a comprehensive portfolio of safety features and assistance systems round off the model upgrade.

SEAT celebrated the Ibiza's 40th birthday with another special-edition model: The Ibiza FR Anniversary Edition captivates in its exclusive Graphene Grey bodywork and Cosmo Grey 18-inch alloy wheels along with the "Anniversary Limited Edition" logo lasered on the B pillar. Inside, textile bucket seats offer a new level of dynamism and comfort. Other stand-out features are the dark aluminum matt surfaces on the doors and center console and the "Anniversary Limited Edition" logo lasered on the door sill.

CUPRA has taken things to a new level with a more powerful version of its all-electric Born model. The Born VZ delivers 240 kW (326 PS) of power to the tarmac - an increase of 40% over the previous e-Boost version. Torque has been upped by 75% to an impressive 545 Nm, allowing the vehicle to sprint from 0 to 100 km/h in just

5.7 seconds. Its top speed is 200 km/h. New adaptive DCC Sport suspension, responsive steering behavior and a more direct brake feel combine to deliver a dynamic driving experience, whilst new colors and 20-inch alloy wheels define the exterior design. Inside, the highlights are CUP bucket seats made from sustainable material and recuperation paddle shifts on the steering wheel that allow the driver to choose between three different levels of energy recuperation.

In March, the Audi brand celebrated the debut of the Q6 e-tron, the new technological spearhead of the Audi portfolio. The all-electric SUV is the first production model based on the Premium Platform Electric (PPE) and the E3 1.2 electronic architecture. It therefore represents the next step in the company's transformation into a provider of premium electric mobility. The model embodies high everyday practicality and sporty, dynamic SUV styling with Audi's further refined design language for electric-powered models. The Q6 e-tron sets standards in electric performance, range and charging. Thanks to 800-volt technology and a maximum DC charging capacity of 270 kW as standard, up to 255 km of range can be recharged in just ten minutes at a suitable fast-charging station. The battery charge level increases from 10% to 80% in around 21 minutes. Intelligent, high-performing and predictive thermal management is a key factor in this impressive charging performance. Powerful, compact and highly

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Updated Information

Group News

efficient electric motors and a newly developed lithium-ion battery with a total gross capacity of 100 kWh provide a range of up to 625 km. The system power output of 285 kW (387 PS) offers the sporty performance that Audi is known for and a top speed of 210 km/h. The heart of the new Digital Stage display and control system is the free- standing Audi MMI panoramic display in a curved design, consisting of an 11.9-inch virtual cockpit and 14.5-inch touch display as well as a 10.9-inch MMI passenger display. The Q6 e-tron's active digital light signature is a world first in lighting technology; thanks to its software module, the matrix LED headlights and OLED taillights appear livelier and more intelligent, whilst also boosting safety.

Audi put its successful A3 model through an extensive upgrade in the first quarter: the new A3 is sportier, more comfortable and comes with more digital features than ever before. This is thanks to the more progressive design as well as the expanded standard equipment, new materials and functions. Apps that can be used directly on the vehicle display, a choice of daytime running light signatures, and the flexible addition of functions on demand offer a high level of customization. The A3 allstreet, the distinctive crossover in the A3 family, is set to be a completely new arrival on the market. With its off-road character, greater ground clearance than the A3 Sportback, and raised seating position, the vehicle offers an SUV-like driving experience combined with high functionality.

Audi also upgraded the Q7, its flagship family SUV, with a clean design and further enhanced technology. A fresh exterior design with a new front and rear end accentuates the powerful character of the Q7, which offers first-class versatility and generous space for up to seven passengers. HD matrix LED headlights with an additional laser high beam are now available on the Q7 for the first time, as are digital daytime running lights with selectable light signatures. Digital OLED taillights with four selectable rear light designs complete the lighting technology on offer. New wheels, colors, decorative inlays and seats with contrast stitching enable even greater customization of the most versatile SUV among Audi's Q models.

At Porsche, the Macan entered its second model generation, now in all-electric form. With its progressive, timeless design, characteristic Porsche performance, a range suitable for long-distance driving and high everyday practicality, it is designed to completely fulfill the requirements of Porsche customers opting for a sporty SUV. The new Macan is the first model from Porsche to be based on the newly developed Premium Platform Electric (PPE) with 800-volt architecture. The battery has a DC charging capacity of up to 270 kW and can charge from 10% to 80% in around 21 minutes at a suitable fast-charging station. The vehicle has a range of up to 591 km. Electrification has allowed for increased luggage space in the Macan; depending on the model and the equipment fitted, the luggage capacity behind the rear seat bench is up to 540 liters. The Macan's display and control system features up to three screens, including the free-standing,12.6-inch,curved-design instrument cluster and the 10.9-inch central display. For the first time ever, there is a head-up display with augmented reality technology. This displays virtual elements such as navigation arrows, which appear to the driver to be located around ten meters in front of the vehicle. The new-generation infotainment system suggests routes, including charging stops, via voice assistant. In the new Porsche App Center, passengers can access apps from third-party providers and install them in the Macan.

Porsche has also extensively updated the body variants available for the Taycan: the Taycan sports saloon, the versatile Taycan Cross Turismo and the sporty yet practical Taycan Sport Turismo. New front and rear-end styling and new headlights and taillights have further sharpened the clean, purist design of the Taycan. The new front wing panels and flatter headlights emphasize the vehicles' width. The main headlights with high-resolution HD matrix technology feature detailed optics and display the brand's characteristic four-point graphics. The new versions of the Taycan have greater power and range along with faster acceleration and charging. The improvement of performance and efficiency is down to a number of factors: an advanced powertrain with a new, up to 80 kW more powerful rear-axle motor, a modified pulse inverter with optimized software, more powerful batteries, revised thermal management, a next-generation heat pump and a modified recuperation and all-wheel-drive strategy. Depending on the body variant and powertrain, the range has been extended to up to 678 km, an increase of 35%. Four powertrain options are available, with rear- and all-wheel-drive variants. All Taycan versions feature an even more extensive standard equipment list and come with the latest generation of the Porsche Driver Experience with a display and control system that has been improved in many areas.

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Updated Information

Group News

AWARDS

Numerous Volkswagen Group models won categories in the "Best Cars 2024" awards from auto motor sport magazine in February 2024. The Volkswagen Passenger Cars brand impressed with the T-Roc in the small SUVs/crossovers category. The Polo from Volkswagen Passenger Cars prevailed against the competition in the overall rankings in the small cars category. The Škoda Fabia won the import rankings in this category. Škoda also took victory in the import ranking for the compact class with the Octavia. The Bentley Continental GT was the winner of the import rankings in the luxury class. In addition, the Porsche brand secured top place in the sports cars category with the 911 and in the convertibles category with the 911 Cabrio. The Porsche Macan won the large SUVs/off-roaders category in the overall rankings. Volkswagen Commercial Vehicles took the top spot in the vans category with the ID. Buzz. The Lamborghini Urus came top among import vehicles in the luxury SUVs/off- roaders category. The 48th edition of the awards saw a total of over 90,000 readers choose their favorites in 13 vehicle categories.

At the end of February 2024, the CUPRA brand won Top Brand Desire in the inaugural "Car Loyalty Awards 2024". Based on the Car Loyalty Report, CUPRA gained more new customers in percentage terms than any other brand on the German market in 2023. The analysis was performed using data on vehicle registrations from Germany's Federal Motor Transport Authority. The award was presented by the magazine Automobilwoche and the market research institute Dataforce.

In early March 2024, Bentley Motors won the "Britain's Most Admired Companies Award". This was already the third time in five years that Bentley has received the British award organized by the international market research company Echo Research. Bentley took top place in the automotive manufacturers category in the comprehensive study of 250 leading British brands across 25 industries.

Also in March 2024, the ID. Buzz Cargo and Caddy Cargo models from the Volkswagen Commercial Vehicles brand were awarded platinum and gold in the Euro NCAP safety ratings. Both vehicles delivered impressive performances in the braking tests and with their lane-keeping capabilities and assistance systems. The test procedure examines and rates the safety aspects of new vehicles.

ANNIVERSARIES

In mid-January 2024, the Volkswagen Passat Estate celebrated its 50th birthday. Ever since it launched on the market, the Passat Estate has offered a particularly large luggage compartment and high level of comfort. Volks- wagen's plant in Bratislava has been busy building the ninth generation of the Passat since the beginning of the year.

Volkswagen de México will be celebrating its 60th anniversary in 2024. Its headquarters at the Puebla plant is the largest car plant in Mexico. The engine factory is located at the Silao plant. Volkswagen de México employs approximately 13,500 people.

Volkswagen do Brasil celebrated 25 years of its Curitiba site in early February 2024. The plant has already manufactured three million vehicles for the Volkswagen and Audi brands. Approximately 2,000 employees work at the site.

At the end of February 2024, Volkswagen Group Africa reached the production milestone of 1.5 million export vehicles at the Kariega plant. The milestone vehicle was a Polo GTI for the United Kingdom. Volkswagen Group Africa has been manufacturing vehicles for export since 1992.

Also in February 2024, SEAT celebrated 40 years of the Ibiza. Since its launch, more than six million units have been sold over five generations of this model, making it the brand's top-selling vehicle. A limited special-edition model SEAT Ibiza FR "Anniversary Edition" is available to mark the anniversary.

Škoda hit the production milestone of 200,000 Enyaqs and Enyaq Coupés at the end of February 2024. The milestone vehicle was a white Enyaq Coupé Sportline. The model family is expected to drive forward the Škoda brand's e-mobility offensive with improved ranges, new software and intuitive control interfaces.

The Volkswagen Passenger Cars brand celebrated 50 years of the Golf in February 2024. With over 37 million vehicles sold, the Golf is the most widely produced Volkswagen of all time. Today, the eighth generation of the Golf is being manufactured. An exclusive special-edition model - the Golf "Edition 50" - is available to mark the anniversary.

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Group News

COOPERATION AND INVESTMENTS

In February 2024, Volkswagen and XPeng in China signed a framework agreement regarding a platform and software collaboration, marking an important milestone in this strategic partnership that was announced in July 2023. The agreement centers on the joint development of two all-electricmid-size vehicles for the Volkswagen Passenger Cars brand, beginning with an SUV. The two jointly developed models are to be equipped with state- of-the-art software and hardware and offer Chinese customers an intuitive, connected, digital experience and automated driving functions. They are due to arrive on the market in 2026.

In February 2024, the Volkswagen Group and the Indian company Mahindra & Mahindra Ltd. signed the first contract to supply MEB components for the INGLO electric platform developed by Mahindra. The supply agreement provides for the delivery of unified cells, the core element of Volkswagen's battery strategy, and will have a total volume of 50 GWh and a term of several years. One of the aims of the agreement is to strengthen e-mobility in the Indian automotive market.

In March 2024, the Volkswagen Group and the Israeli company Mobileye Vision Technologies Ltd. announced that they would intensify their long-standing cooperation in the field of automated driving. The partners intend to introduce Level 4-enabled vehicles for passenger and goods transport within just a few years, and to rapidly bring new automated driver assist functions to series production at multiple Group brands. These functions include advanced assist systems for highway and urban driving, such as automated overtaking in permitted areas on multi-lane highways, automatic stopping at red lights and stop signs, and assistance at intersections and round- abouts.

FOUNDATIONS LAID FOR SCOUT PRODUCTION

Scout Motors Inc. broke ground on a new production center in the US town of Blythewood, South Carolina, in February 2024. Strategically located conveniently close to several major cities, the site is due to commence vehicle production by the end of 2026. It will have the capacity for up to 200,000 vehicles per year. Scout Motors was founded to manufacture all-electricpick-up trucks and rugged SUVs that bring the character of the original commercial vehicle from the traditional US marque Scout into the present day.

SUSTAINABILITY STRATEGY REGENERATE+

In March 2024, the Volkswagen Group presented its new, holistic sustainability strategy regenerate+. This is based on the goal of making a positive contribution to nature and society that is measurable and comprehensible as a mobility provider of the future. It focuses on four dimensions: nature, our employees, society and business. Regenerate+ applies across the Group and forms the basis for ambitious sustainability programs at all Group brands and locations.

SUPERVISORY BOARD MATTERS

Mr. Peter Mosch, Chair of the General Works Council of AUDI AG, resigned from the Supervisory Board of Volks- wagen AG with effect from December 31, 2023. Ms. Rita Beck, Deputy Chair of the General Works Council of AUDI AG at the Ingolstadt plant, was appointed by the court as his successor with effect from January 9, 2024.

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Interim Group Management Report

Volkswagen Shares

Volkswagen Shares

The international stock markets recorded a strong first quarter in 2024. Driven in particular by the hope that central banks would cut their key rates of interest later in the year, they continued the upward trend that started in October 2023 and soared to new record levels. Economic growth ahead of expectations, a normalization of inflation, and developments in the field of artificial intelligence in the USA also had a positive impact.

After a favorable year on the stock markets in 2023, which saw the German stock index (DAX) rise by 20%, the new year started with sideways movement. An upward trend in the DAX then began at the end of January 2024, during which the index hit several new all-time highs. The German stock market barometer benefited particularly from positive corporate data in the reporting season and market participants' expectations of an imminent turnaround in interest rates. At the end of the first quarter of 2024, the DAX was up 10.4% on the 2023 year-end figure, marking a new high.

PRICE DEVELOPMENT FROM DECEMBER 2023 TO MARCH 2024

Index based on month-end prices: December 31, 2023 = 100

 Volkswagen ordinary share	+19.5%
 Volkswagen preferred share	+9.9%
 DAX	+10.4%
 EURO STOXX Automobiles & Parts	+16.1%

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D J F M A M J J A S O N D

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