Annual Result

(Condensed, in accordance with the German Commercial Code)

Fiscal year 2023 was impacted by the challenging global market environment and the transformation of the industry.

ANNUAL RESULT

No material special items in connection with the diesel issue were recognized in fiscal year 2023.

In the fiscal year under review, the Russia-Ukraine conflict negatively affected Volkswagen AG in an amount of €0.1 billion (previous year: approximately €1 billion). This arose from the loss on the disposal of the shares in OOO Volkswagen Group Rus, Kaluga, which was reported in the financial result.

Sales increased by 16.3% year-on-year to €92.4 billion in 2023, driven particularly by higher sales volumes and a more favorable price-product mix. Sales generated abroad accounted for a share of €53.6 billion or 58.0%. Cost of sales increased by 9.1% to €86.7 billion due to higher vehicle sales in the reporting year, among other reasons.

Gross profit on sales rose accordingly to €5.7 (−0.0) billion.

The net other operating result amounted to €0.1 billion in the reporting year, down €1.9 billion on the previous year. This decline was driven in particular by negative measurement effects and the profit or loss from the settlement of hedging transactions that was less positive than in the prior year.

A reassessment and extension of the useful lives of certain items of property, plant and equipment gave rise to a positive effect on profit or loss of around €0.4 billion in the 2023 reporting year.

The financial result fell by €7.7 billion to €9.1 billion, mainly because of lower income from profit transfers. In the previous year, this item had included income of €13.2 billion from profit transferred by Porsche Holding Stuttgart GmbH, Stuttgart, in connection with the IPO of Porsche AG.

Taxes on income amounted to €−1.1 (1.0) billion. The higher tax expenses in the reporting year were due mainly to foreign withholding tax and to tax expenses for prior years.

Net income for fiscal year 2023 amounted to €6.2 (12.5) billion.