Volkswagen AG: Interim Report January-September 2003

WOLFSBURG, Germany--Oct. 2, 20039, 2003--

            
January-September                           2003     2002  +/- (%)
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Volkswagen Group
Deliveries to customers       '000 units   3,710    3,756   -  1.2
Unit sales                    '000 units   3,705    3,731   -  0.7
Production                    '000 units   3,742    3,778   -  1.0
Sales revenue                million EUR  64,112   65,269   -  1.8
Operating profit             million EUR   1,730    3,714   - 53.4
Profit before tax            million EUR   1,378    2,974   - 53.7
Profit after tax             million EUR     813    1,842   - 55.9
Earnings per ordinary 
  share - undiluted                  EUR    2.08     4.78   - 56.5

Automotive Division
Cash flows from 
  operating activities       million EUR   5,243    6,748   - 22.3
Cash flows from 
  investing activities       million EUR   6,315    6,130   +  3.0
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The negative impact of the strong Euro, declining sales figures in important markets and upfront expenditures for new models, as well as the restructuring charge in Brazil, depressed the operating profit of the Volkswagen Group in the first nine months of the year. With the launch of the Golf V as well as improving sales volumes from the new Touareg, Touran, Audi A3 and Audi A8 models and the new Transporter generation, we are expecting a stabilization in the remaining months of the year in operating business. Our steps to optimize the product costs and to limit investment expenditures contribute to this.

A cautious assessment of the changed economic framework - in particular developments in automotive and currency markets - will lead to a revaluation of capitalized upfront expenditures in the context of the full year accounts. Taking these measures into account, the operating profit for 2003 will probably be just under half the level of the previous year.

Wolfsburg, October 29, 2003 - Volkswagen AG - The Board of Management

(The full interim report is available at " http://www.volkswagen-ir.de ".)