Annual Result

(CONDENSED, IN ACCORDANCE WITH THE GERMAN COMMERCIAL CODE)

2024 was dominated by increasingly fierce competition in the automotive sector, and by the implementation of our performance program.

No material special items in connection with the diesel issue were recognized in fiscal year 2024.

In the reporting year, expenses of €0.9 billion were recognized in the other operating result in connection with the Board of Management’s resolution in April 2024 to support the reduction in administrative staff by offering targeted severance agreements.

In December 2024, after intense negotiations, Volkswagen AG reached consensus with the IG Metall trade union and the works council on a joint Zukunft Volkswagen agreement. It is planned to realign production capacities at German Volkswagen sites. At the level of collective bargaining, this wage settlement under the company wage agreement until 2030 creates the conditions for financial labor cost savings of €1.5 billion a year. The short-term labor cost savings as well as the structural measures agreed and savings on development costs should lead to cost effects of more than €4 billion a year in the medium term. In addition, there are plans to reduce technical capacity by 734,000 units in the German plants. To this end, the company and co-determination partners agreed not only on structural production measures but also on a socially responsible reduction in the workforce by more than 35,000 employees along the demographic curve at Volkswagen sites in Germany by 2030, thus creating the basis for making important investments in future products until 2030. The calculation of various personnel-related provisions had to be adjusted on the basis of this collective bargaining agreement entered into between Volkswagen AG and the employee representatives in December 2024. This resulted in income of around €1 billion, which is presented in other operating income. In addition, in the context of measuring pension obligations, various assumptions about expected developments had to be adjusted.

Sales increased by 1.8% year-on-year to €94.1 billion in 2024, driven particularly by a more favorable price-product mix. Sales generated abroad accounted for €55.1 billion or 58.6%. Cost of sales fell by 0.9% to €85.9 billion due to lower material costs in the reporting year, among other reasons.

Gross profit on sales rose accordingly to €8.2 (5.7) billion.

The other operating result amounted to €0.4 billion in the reporting year, up €0.4 billion on the previous year. The increase in other operating expenses, which was mainly due to restructuring expenses, was also offset by a rise in other operating income, largely on account of €0.9 billion in income from the reversal of personnel-related provisions.

The financial result fell by €4.3 billion to €4.8 billion, mainly because of lower income from profit transfers and higher loss absorption. In the previous year this mainly included a dividend payment of €5.6 billion received from Volkswagen Group of America, Inc., Herndon

Taxes on income amounted to €‑0.2 (‑1.1) billion. The decline in tax expense in the reporting year was largely due to decreasing foreign withholding tax income for prior years.

Net income for fiscal year 2024 amounted to €5.1 (6.2) billion.