Income Statement of the Volkswagen Group for the period January 1 to December 31

€ Million 2020 2019

Sales Revenue 222,884 252,632
Cost of sales -183,937 -203,490
Gross result 38,947 49,142
Distribution expenses -18,407 -20,978
Administrative expenses -9,399 -9,767
Other operating income 12,438 11,453
Other operating expenses -13,904 -12,890
Operating result 9,675 16,960
Share of the result of equity-accounted investments 2,756 3,349
Interest income 793 910
Interest expenses -2,291 -2,524
Other financial result 733 -339
Financial result 1,991 1,396
Earnings before tax 11,667 18,356
Income tax income/expense -2,843 -4,326
Current -3,150 -4,147
Deferred 307 -180
Earnings after tax 8,824 14,029
of which attributable to
Noncontrolling interests -43 143
Volkswagen AG hybrid capital investors 533 540
Volkswagen AG shareholders 8,334 13,346

Basic/diluted earnings per ordinary share in € 16.60 26.60

Basic/diluted earnings per preferred share in € 16.66 26.66
1 to December 31 BMW Group Income Statement at 31 December
2018 in € Million 2020 2019 2018
235,849 Revenues 98,990 104,210 96,855
-189,500 Cost of sales -85,408 -86,147 -78,477
46,350 Gross Profit 13,582 18,063 18,378
-20,510 Selling and administrative expenses -8,795 -9,367 -9,568
-8,819 Other operating income 916 1,031 774
11,631 Other operating expenses -873 -2,316 -651
-14,731 Profit/loss before financial result 4,830 7,411 8,933
13,920 Result from equity accounted investments 920 136 632
3,369 Interest and similar income 116 179 397
967 Interest and similar expenses -458 -499 -386
-1,547 Other financial result -186 -109 51
-1,066 Financial result 392 -293 694
1,723 Profit/loss before tax 5,222 7,118 9,627
15,643 Income taxes -1,365 -2,140 -2,530
-3,489 Profit/loss from continuing operations 3,857 4,978 7,097
-3,533 Profit/loss from discontinued operations - 44 -33
43 Net profit/loss 3,857 5,022 7,064
12,153 Attributable to minority interest 82 107 90
Attributable to shareholders of BMW AG 3775 4,915 6,974
17 Basic earnings per share of common stock in € 5.73 7.47 10.60
309 Basic earnings per share of preferred stock in € 5.75 7.49 10.62
11,827 Dilutive effects - - -
Diluted earnings per share of common stock in € 5.73 7.47 10.60
23.57 Diluted earnings per share of preferred stock in € 5.75 7.49 10.62
23.63
 Balance Sheet of the Volkswagen Group as of December 31
€ Million 2020
Assets
Noncurrent assets
Intangible assets 67,968
Property, plant and equipment 63,884
Lease assets 50,686
Investment property 558
Equity-accounted investments 10,080
Other equity investments 1,865
Financial services receivables 82,565
Other financial assets 7,834
Other receivables 2,867
Tax receivables 376
Deferred tax assets 13,486
302,170
Current assets
Inventories 43,823
Trade receivables 16,243
Financial services receivables 58,006
Other financial assets 13,234
Other receivables 7,381
Tax receivables 1,186
Marketable securities 21,162
Cash, cash equivalents and time deposits 33,909
Assets held for sale -
194,944
Total assets 497,114

Equity and Liabilities

Equity
Subscribed capital 1,283
Capital reserve 14,551
Retained earnings 100,772
other reserves -5,270
Equity attributable to Volkswagen AG hybrid capital investors 15,713
Equity attributable to Volkswagen AG shareholders and hybrid capital investors 127,049
Non controlling interests 1,734
128,783
Noncurrent liabilities
Financial liabilities 114,809
Other financial liabilities 4,257
Other liabilities 7,905
Deferred tax liabilities 4,890
Provisions for pensions 45,081
Provisions for taxes 3,292
Other provisions 22,688
202,921
Current liabilities
Put options and compensation rights granted to noncontrolling interest shareholders -
Financial liabilities 88,648
Trade payables 22,677
Tax payables 340
Other financial liabilities 10,590
Other liabilities 17,979
Provisions for taxes 2,213
Other provisions 22,964
Liabilities associated with assets held for sale -
165,410
Total equity and liabilities 497,114
ember 31 BMW Group Balance sheet at 31 December
2019 2018 in € Million
ASSETS
Intangible assets
66,214 64,613 Property, plant and equipment
66,152 57,630 Leased products
48,938 43,545 Investment accounted for using the equity method
538 496 Other investments
8,169 8,434 Receivables from sales financing
1,902 1,474 Financial assets
86,973 78,692 Deferred tax
5,553 6,521 Other assets
2,722 2,608 Non-current assets
341 476 Inventories
13,106 10,131 Trade receivables
300,608 274,620 Receivables from sales financing
Financial assets
46,742 45,745 Current tax
17,941 17,888 Other assets
58,615 54,216 Cash and cash equivalents
12,216 11,586 Assets held for sale
7,272 6,203 Current assets
1,190 1,879 Total assets
16,769 17,080
25,923 28,938 EQUITY AND LIABILITIES
795 - Subscribed capital
187,463 183,536 Capital reserves
488,071 458,156 Revenue reserves
Accumulated other equity
Equity attributable to shareholders of BMW AG
Minority interest
1,283 1,283 Equity
14,551 14,551 Pension provisions
96,929 91,105 Other provisions
-3,646 -2,417 Deferred tax
12,663 12,596 Financial liabilities
121,781 117,117 Other liabilities
1,870 225 Non-current provisions and liabilities
123,651 117,342 Other provisions
Current tax
113,556 101,126 Financial liabilities
4,499 3,219 Trade payables
7,271 6,448 Other liabilities
5,007 5,030 Liabilities in conjunction with assets held for sale
41,389 33,097 Current provisions and liabilities
2,991 3,047 Total equity and liabilities
 21,783 20,879
196,497 172,846

- 1,853
87,912 89,757
22,745 23,607
408 456
10,858 9,416
19,320 17,593
1,876 1,412
24,434 23,874
370 -
167,924 167,968
488,071 458,156
e sheet at 31 December
2020 2019 2018

12,342 11,729 10,971

21,850 23,245 22,163
41,995 42,609 38,259
3,585 3,199 2,624
735 703 739
48,025 51,030 48,313
2,644 1,370 1,010
2,459 2,194 1,640
1,216 1,325 847
134,851 137,404 126,566
14,896 15,891 14,248
2,298 2,518 2,546
36,252 41,407 38,700
5,108 5,955 6,675
606 1,209 1,378
9,110 11,614 9,749
13,537 12,036 10,979
- - 463
81,807 90,630 84,738
216,658 228,034 211,304

660 659 658

2,199 2,161 2,118
59,550 57,667 55,830
-1,518 -1,163 -1,338
60,891 59,324 57,268
629 583 529
61,520 59,907 57,797
3,693 3,335 2,330
6,488 5,788 5,530
509 632 1,762
67,390 70,647 66,744
5,095 5,100 5,293
83,175 85,502 81,659
7,494 7,421 5,871
747 963 1,158
38,986 46,093 39,260
8,644 10,182 9,669
16,092 17,966 15,826
- - 64
71,963 82,625 71,848
216,658 228,034 211,304
 RATIOS Volkswagen Group
2020 2019 2018
Operating Profit Margin 4.34% 6.71% 5.90%
Profitability Gross Profit Margin 17.47% 19.45% 19.65%
Net Profit Margin 3.74% 5.28% 5.01%

Current ratio 1.18 1.12 1.09

Liquidity
Quick ratio 0.91 0.84 0.82

Gearing ratio 2.86 2.95 2.90

Gearing
Interest cover 4.22 6.72 9.00

Earnings per share € 16.60 € 26.60 € 23.57

Price to earnings € 10.25 € 6.51 € 5.90
Investor Related
Dividend yield 2.8% 3.8% 3.5%

Inventory days 87 84 88
Efficiency Receivable days 27 26 28
Asset turnover 0.67 0.79 0.81

Operati ng Profi t Margin Gross Profi t Mar

10.00% 9.22% 25.00%
9.00%
20.00% 19.45%
8.00%
7.11% 17.47% 17.33%
7.00% 6.71%
5.90%
6.00% 15.00% 13.72%
4.88%
5.00% 4.34%
4.00% 10.00%
3.00%
2.00% 5.00%
1.00%
0.00% 0.00%
2020 2019 2018 2020 2019

VW BMW VW BMW

Current Ratio Quick Rati o

1.20 1.00
1.18 1.18
1.18
0.95 0.93
1.16 0.91 0.90
1.14 0.90
1.14
1.12 1.12 0.85 0.84
1.10 1.09
1.10
0.80
1.08
0.75
 1.18 1.18
1.18
0.95 0.93
1.16 0.91 0.90
1.14 0.90
1.14
1.12 1.12 0.85 0.84
1.10 1.09
1.10
0.80
1.08
0.75
1.06
1.04 0.70
2020 2019 2018 2020 2019

VW BMW VW BMW

Earnings per share Price to Earn

€ 30.00 € 14.00
€ 26.60 € 12.61
€ 25.00 € 23.57 € 12.00
€ 10.25
€
€ 20.00 € 10.00
€ 16.60
€ 8.00
€ 15.00 € 6.51
€ 10.60 € 6.00
€ 10.00 € 7.47
€ 5.73 € 4.00
€ 5.00
€ 2.00
€- €-
2020 2019 2018 2020 2019
VW BMW VW BMW

Inventory days Receivable da

100 30
87 88 27 26
90 84
80 25
70 67 66
64 20
60
50 15
40
10 8 9
30
20
5
10
0 0
2020 2019 2018 2020 2019

VW BMW VW BMW

Gearing Rati o Interest Cov

3.00 25.00
2.95
2.90
2.90 2.86
20.00
2.81
2.80
14.8
15.00
2.70 2.66
10.55
2.60 10.00
2.52
6.72
3.00 25.00
2.95
2.90
2.90 2.86
20.00
2.81
2.80
14.8
15.00
2.70 2.66
10.55
2.60 10.00
2.52
6.72
2.50
5.00 4.22
2.40

2.30 0.00
2020 2019 2018 2020 2019

VW BMW VW BMW
 BMW Group Method Used
2020 2019 2018
4.88% 7.11% 9.22% Operating Profit / Revenue
13.72% 17.33% 18.97% Gross Profit / Revenue
3.81% 4.72% 7.20% Net Profit / Revenue

1.14 1.10 1.18 Current Assets / Current Liabilities

0.93 0.90 0.98 (Current Assests - Inventory) / Current Liabilities

2.52 2.81 2.66 Debt / (Debt + Equity)

10.55 14.85 23.14 PBIT / Debt interest

€ 5.73 € 7.47 € 10.60 PAT / Number of ordinary shares in issue

€ 12.61 € 9.79 € 6.67 Share price / EPS
2.6% 3.4% 5.0% DPS / Market price per share

64 67 66 (Inventory / Cost of Sales) x 365

8 9 10 (Receivables / Credit Sales) x 365
0.68 0.72 0.69 Sales / Capital Employed

Gross Profi t Margin Net Profi t Margin

8.00%
7.20%
7.00%
19.45% 19.65% 18.97%
7.47% 17.33% 6.00%
5.28%
5.01%
5.00% 4.72%
13.72%
4.00% 3.74% 3.81%

3.00%
2.00%
1.00%
0.00%
2020 2019 2018 2020 2019 2018

VW BMW VW BMW

Quick Rati o
0.98

0.93
91 0.90

0.84
0.82
 0.93
91 0.90

0.84
0.82

2020 2019 2018

VW BMW

Price to Earnings Dividend yield

6.0%
€ 12.61
5.0%
5.0%
€ 10.25
€ 9.79
4.0% 3.8%
3.4% 3.5%

€ 6.51 € 6.67 3.0% 2.8% 2.6%

€ 5.90
2.0%

1.0%

0.0%
2020 2019 2018 2020 2019 2018

VW BMW VW BMW

Receivable days Asset turnover

0.90
28 0.81
26 0.79
0.80
0.72 0.69
0.67 0.68
0.70
0.60
0.50
0.40
9 10 0.30
8
0.20
0.10
0.00
2020 2019 2018 2020 2019 2018

VW BMW VW BMW

Interest Cover
23.14

14.85

10.55
9.00
6.72
 23.14

14.85

10.55
9.00
6.72
4.22

2020 2019 2018

VW BMW
 Taken from the Annual Report.
Share price taken from the Annual Report
Taken from the Annual Report for VW. DPS
taken from Annual Report for BMW.

n
7.20%

5.01%

2018
d yield

5.0%

3.4% 3.5%

19 2018

BMW

turnover
79 0.81
0.72 0.69

2019 2018

W BMW
 RATIOS Volkswagen Group BMW Group
2020 2019 2018 2020
Operating Profit Margin 4.34% 6.71% 5.90% 4.88%
Profitability
Gross Profit Margin 17.47% 19.45% 19.65% 13.72%
Net Profit Margin 3.96% 5.55% 5.15% 3.90%

Current ratio 1.18 1.12 1.09 1.14

Liquidity
Quick ratio 0.91 0.84 0.82 0.93

Gearing ratio 2.86 2.95 2.90 2.52

Gearing
Interest cover 4.22 6.72 9.00 10.55

Earnings per share € 16.60 € 26.60 € 23.57 € 5.73

Price to earnings € 10.25 € 6.51 € 5.90 € 12.61
Investor Related
2.8% 3.8% 3.5% 2.6%
Dividend yield

Inventory days 87 84 88 64
Efficiency Receivable days 27 26 28 8
Asset turnover 0.67 0.79 0.81 0.68
BMW Group Method Used
2019 2018
7.11% 9.22% Operating Profit / Revenue
17.33% 18.97% Gross Profit / Revenue
4.82% 7.29% Net Profit / Revenue

1.10 1.18 Current Assets / Current Liabilities

0.90 0.98
(Current Assests - Inventory) / Current Liabilities

2.81 2.66 Debt / (Debt + Equity)

14.85 23.14 PBIT / Debt interest

€ 7.47 € 10.60
PAT / Number of ordinary shares in Taken
issue from the Annual Report.
€ 9.79 € 6.67 Share price / EPS Taken from taken
Share price the Annual
from the Annual Report
Report for VW. DPS
3.4% 5.0% DPS / Market price per share taken from Annual
Report for BMW.

67 66 (Inventory / Cost of Sales) x 365

9 10 (Receivables / Credit Sales) x 365
0.72 0.69 Sales / Capital Employed
 Other Calculations for Volkswagen
Item in the Financial Statement 2020 2019 2018

Revenue of Sales 222,884 252,632 235,849

Difference in the year 2018-2019 7% Increase
Difference in the year 2019-2020 12% Decrease

Cost of Sales 183,937 203,490 189,500

Difference in the year 2018-2019 7% Increase
Difference in the year 2019-2020 10% Decrease

Gross Profit 38,947 49,142 46,350

Difference in the year 2018-2019 6% Increase
Difference in the year 2019-2020 21% Decrease

COS (Interest expense) 2,303 2,705 2,270

Difference in the year 2018-2019 19% Increase
Difference in the year 2019-2020 15% Decrease

COS (Government grants) 1,001 657 466

Difference in the year 2018-2019 41% Increase
Difference in the year 2019-2020 52% Increase

Earnings After tax 8,334 13,346 11,827

Difference in the year 2018-2019 13% Increase
Difference in the year 2019-2020 38% Decrease

Distribution expenses 18,407 20,978 20,510

Difference in the year 2018-2019 2% Increase
Difference in the year 2019-2020 12% Decrease

Administrative expenses 9,399 9,767 8,819

Difference in the year 2018-2019 11% Increase
Difference in the year 2019-2020 4% Decrease

Other operating income 12,438 11,453 11,631

Difference in the year 2018-2019 2% Decrease
Difference in the year 2019-2020 9% Increase

Other operating expenses 13,904 12,890 14,731

Difference in the year 2018-2019 12% Decrease
Difference in the year 2019-2020 8% Increase
Other financial result 733 -339 -1,066
Difference in the year 2018-2019 68% Increase
Difference in the year 2019-2020 316% Increase

Income tax income/expense -2,843 -4,326 -3,489

Current -3,150 -4,147 -3,533
Deferred 307 -180 43
Difference in the year 2018-2019 519% Decrease
Difference in the year 2019-2020 271% Increase

Current assets 194,944 187,463 183,536

Difference in the year 2018-2019 2% Increase
Difference in the year 2019-2020 4% Increase

Current liabilities 165,410 167,924 167,968

Difference in the year 2018-2019 0% Decrease
Difference in the year 2019-2020 1% Decrease

Operating result 9,675 16,960 13,920

Difference in the year 2018-2019 22% Increase
Difference in the year 2019-2020 43% Decrease

Interest expenses 2,291 2,524 1,547

Difference in the year 2018-2019 63% Increase
Difference in the year 2019-2020 9% Decrease
 Other Calculations for BMW
Item in the Financial Statement 2020 2019 2018

Revenue of Sales 98,990 104,210 96,855

Difference in the year 2018-2019 8% Increase
Difference in the year 2019-2020 5% Decrease

Cost of Sales 85,408 86,147 78,477

Difference in the year 2018-2019 10% Increase
Difference in the year 2019-2020 1% Decrease

Gross Profit 13,582 18,063 18,378

Difference in the year 2018-2019 2% Decrease
Difference in the year 2019-2020 25% Decrease

Other operating income 916 1,031 774

Difference in the year 2018-2019 33% Increase
Difference in the year 2019-2020 11% Decrease

Other operating expenses -873 -2,316 -651

Profit/loss before financial result 4,830 7,411 8,933
Difference in the year 2018-2019 17% Decrease
Difference in the year 2019-2020 35% Decrease

Other financial result -186 -109 51

Difference in the year 2018-2019 314% Decrease
Difference in the year 2019-2020 71% Decrease

Net profit/loss 3,775 4,915 6,974

Difference in the year 2018-2019 30% Decrease
Difference in the year 2019-2020 23% Decrease

Financial result 392 -293 694

Difference in the year 2018-2019 142% Decrease
Difference in the year 2019-2020 234% Increase

Result from equity accounted investments 920 136 632

Difference in the year 2018-2019 78% Decrease
Difference in the year 2019-2020 576% Increase

Current assets 81,807 90,630 84,738

Difference in the year 2018-2019 7% Increase
Difference in the year 2019-2020 10% Decrease

Current provisions and liabilities 71,963 82,625 71,848

Difference in the year 2018-2019 15% Increase
Difference in the year 2019-2020 13% Decrease

Profit/loss before financial result 4,830 7,411 8,933

Difference in the year 2018-2019 17% Decrease
Difference in the year 2019-2020 35% Decrease

Interest and similar expenses 458 499 386

Difference in the year 2018-2019 29% Increase
Difference in the year 2019-2020 8% Decrease
ations for BMW
Item in the Financial Statement 2020 2019 (Adj) 2019 2018

COS (Manufacturing costs) 46,878 48,776 48,690 44,558

Difference in the year 2018-2019 9% Increase
Difference in the year 2019-2020 4% Decrease

COS (Warranty expenditure) 2,971 2,566 2,566 1,717

Difference in the year 2018-2019 49% Increase
Difference in the year 2019-2020 16% Increase

COS (Financial services) 27,114 25,828 23,623 22,042

Difference in the year 2018-2019 7% Increase
Difference in the year 2019-2020 5% Increase