ReinhardFischer Senior Vice President, Volkswagen Group of America

& Volkswagen North American Region Strategy

We areDriving Bigger.FOR OUR COMPANY.

FOR OUR CUSTOMERS.

FOR OUR PLANET.

Volkswagen is committed to the goals of the 2015 Paris Climate Change Conference…

Transportation sector accounts for 1/7 of global CO2

Paradigm shift already underway

Vision of CO2-neutral mobility is firmly anchored

Transformation is underway at all brands

Assessment of measures to achieve CO2 neutrality

The Volkswagen Group is a strong global player…

12BRANDS

10.8millionVEHICLES DELIVERED

122PRODUCTION PLANTS IN 33 COUNTRIES

44,000VEHICLES PRODUCED PER WORKING DAY

365MODELS SOLD IN 153 COUNTRIES

664,496GROUP EMPLOYEES

$267billionSALES REVENUE

$13.8billionEARNINGS AFTER TAX

12.3%GLOBAL CAR MARKET SHARE

$50 billioninvested in electrificationthrough 2023 worldwide.

1 millionelectric vehicles produced worldwide by 2025.

new all-electric models introduced globally by 2028.

70

AUDI e-tron

• >20,000 prospects before start-of-production

• Deliveries since April 2019

Porsche Taycan

• >20,000 registered prospects

• Start-of-production Q1 2020

• >20,000 pre-bookings since May 2019

• Start-of-production Q4 2019

Volkswagen ID.3

$1.4 billioninvestment in Zwickau.

$800 millioninvestment in Chattanooga.

UNITED STATES

79%2018 INCREASE

CHINA

16MM+2040 PROJECTION

81%2018 INCREASE

11MM+2040 PROJECTION

EUROPE

34%2018 INCREASE

11MM+2040 PROJECTION

source: EV-volumes.com; Bloomberg NEF

62%BEV SHARE

65%BEV SHARE

60%GLOBAL BEV SHARE

Key market total PHEV/BEV 2018 sales growth & projections

The global EV market is growing…

source: EV-volumes.com; Bloomberg

NEF

…but growth has been driven mostly by policy…

…with consumer demand slowly starting to grow.

34%OF AMERICANS PLAN TO

BUY

AN EV IN THE NEXT 10

YEARS.

80%SAY THE ENVIRONMENT IS

THE PRIMARY REASON

WHY.source: blog.cargurus.com source: AAA

CO2 emissions

new vehicle fleet

CO2

CO2-neutral

existing fleet

CO2-neutral new

vehicle fleet

Fleet Renewal

2050Today

Laying the groundwork to meet the Paris Agreement…

End-of-lifeUse phaseProduction

RecyclingSupply chainFuel/energy

supplyProductionEnergy

consumption

Climate Change Conference Commitment requires 30% reduction per car by 2025*

* Over the entire life cycle compared to 2015

Focus: Avoidance, Reduction & Compensation

Life cycle CO2 reductions…

One attitude.

All markets.

One program.

All sites.

Role model.

Sustainable.

Resource

efficient.

- 45%

2010 2011

2018

2025

Vision

Zero Impact

Factory

- 25%

Start of

Think

Blue.

Factory.

Audi e-tron

production in

Brussels is

CO2 neutral

Targets for environmental improvement in production develop continuously…

167g/km

<110g/km

2012 2025

-35%

Use Phase

Optimization

Aerodynamic

Optimization

Weight Reduction

Powertrain Fleet

Electrification

CO2 Tank-to-Wheel reduction targets…

$2 Billion investment over 10 years

in 4 phases at $500 million each

Designated to create ZEV infrastructure and adoption

Infrastructure

Highway

fast charging

(211 by 7/19)

Metro charging

(684 by 7/19)

EV Awareness

Education

2 Green City

Projects

in CA

Investment by Volkswagen into 32 Fast charging

stations – Operational in 2019

Analyze 2nd Life RecyclingCell

Production

1st Life

…

Battery

Systems

Battery life cycle management…

Energy

Providers

Automotive

Transport

Politic

s

Society

Push & Pull

Actions on Group level Decarbonization Index CO2-neutral production Supply chain management

Brand Programs Portfolio Processes Lifecycle optimization

Decarbonization VW

Individual Responsibility

VW‘s decarbonization strategy is only one piece in the bigger picture: We need a cross-sectoral, political, public movement towards CO2 reduction…

ThankYou.