Q3 2025 Volkswagen AG Earnings Call

October 30, 2025

Speaker #1: Ladies and gentlemen , please hold the line . The conference will begin shortly . Thank you . Ladies and gentlemen , welcome to the Volkswagen Group .

Operator: Ladies and gentlemen, please hold the line. The conference will begin shortly. Thank you. Ladies and gentlemen, welcome to the Volkswagen Group Investor, Analyst and Media 9 months 2025 Conference Call. I'm Vicky, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star then 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Pietro Zollino, Head of Corporate Communications. Please go ahead.

Pietro Zollino: Ladies and gentlemen, please hold the line. The conference will begin shortly. Thank you. Ladies and gentlemen, welcome to the Volkswagen Group investor, analyst, and media nine-month 2025 conference call. I'm Vicky, the call's co-operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star, then zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Pietro Zollino, Head of Corporate Communications. Please go ahead.

Speaker #1: Investor . Analyst and media . Nine month 2025 conference call . I'm Vicki , the operator . I would like to remind you that all participants will be in listen only mode .

Speaker #1: And the conference is being recorded . The presentation will be followed by a Q&A session . You can register for questions at any time by pressing star and one on your telephone .

Speaker #1: For operator assistance , please press star , then zero the conference must not be recorded for publication or broadcast at this time . It's my pleasure to hand over to Pietro Zollino , head of corporate Communications .

Speaker #1: Please go ahead .

Speaker #2: Yes . Good morning everyone , and welcome to the third quarter 2025 results call of Volkswagen Group . This is , as usual , a call for both the media as well as investors and analysts , moderated by Rolf Woller or Head of Treasury and Investor Relations and myself .

Pietro Zollino: Yes, good morning, everyone, and welcome to the Q3 2025 results call of Volkswagen Group. This is as usual, a call for both the media as well as investors and analysts, moderated by Rolf Woller, our Head of Group Treasury & Investor Relations, and myself, Pietro Zollino, Head of Corporate Communications. With us today is Arno Antlitz, CFO and COO, Volkswagen Group. Good morning, Arno. You should have received the press release, the interim financial report, and all other related materials which were published this morning already. If you do not have them yet, you can find all documents on our Volkswagen Group website. In case of any issues, give us a call or drop us an email. Now, let me hand over to my colleague, Rolf, who will give you a brief run-through of the next about 1.5 hours. Rolf, please.

Arno Antlitz: Yes, good morning everyone, and welcome to the third quarter 2025 results call of Volkswagen Group. This is, as usual, a call for both the media as well as investors and analysts, moderated by Rolf Woller, our Head of Treasury and Investor Relations, and myself, Pietro Zollino, Head of Corporate Communications. With us today is Arno Antlitz, CFO and COO of Volkswagen Group. Good morning, Arno. You should have received the press release, the interim financial report, and all other related materials, which were published this morning already. If you do not have them yet, you can find all documents on our Volkswagen Group website. In case of any issues, give us a call or drop us an email. Now, let me hand over to my colleague Rolf, who will give you a brief run-through of the next about one and a half hours. Rolf, please.

Speaker #2: Pietro Zollino, Head of Corporate Communication. With us today is Arno Antlitz, CFO and CEO of the Volkswagen Group. Good morning, Arno.

Speaker #2: You should have received the press release, the interim financial report, and all other related materials which were published this morning. Already.

Speaker #2: If you do not have them yet , you can find all documents on our Volkswagen Group website . In case of any issues , give us a call or drop us an email .

Speaker #2: Now let me hand over to my colleague Rolf Woller, who will give you a brief run-through of the next steps. This will take about 1.5 hours.

Speaker #2: Rolf , please .

Speaker #3: Thank you . Peter , and good morning to everyone on the call . Thanks for joining us this morning . Let us have a look at our agenda .

Rolf Woller: Thank you, Pietro, and good morning to everyone on the call. Thanks for joining us this morning. Let us have a look at our agenda. Arno will first present the key developments of Q3, and after that, we will take a closer look at the financial results and the full year outlook for 2025. Following the presentation, we will first host the Q&A session for the investor and the analyst community, moderated by myself. After the session, we will have a short break before continuing with the media Q&A, which is then hosted by Pietro. Since today's call includes forward-looking statements, the safe harbor language and other cautionary statements on the slide will govern today's presentation. I encourage you to read the disclaimer carefully, as all forward-looking statements are qualified by this language.

Rolf Woller: Thank you, Pietro. Good morning to everyone on the call. Thanks for joining us this morning. Let us have a look at our agenda. Arno will first present the key developments of the third quarter, and after that, we will take a closer look at the financial results and the full-year outlook for 2025. Following the presentation, we will first host the Q&A session for the investor and the analyst community, moderated by myself. After the session, we will have a short break before continuing with the media Q&A, which is then hosted by Pietro. Since today's call includes forward-looking statements, the safe harbor language and other cautionary statements on the slide will govern today's presentation. I encourage you to read the disclaimer carefully as all forward-looking statements are qualified by this language. In the interest of time, as always, I will not read it out to you loud.

Speaker #3: And we will first present the key developments of the third quarter. After that, we will take a closer look at the financial results.

Speaker #3: And the full year outlook for 2025 . Following the presentation , we will first host a Q&A session for the investor and the analyst community , moderated by myself .

Speaker #3: And after the session , we will have a short break before continuing with the media Q&A , which is then hosted by Pietro .

Speaker #3: Since today's call includes forward looking statements , the safe Harbor language and other cautionary statements on the slide will govern today's presentation . I encourage you to read the disclaimer carefully as all forward looking statements are qualified by this language and in the interest of time , as always , I will not read it out to you loud and with that , I hand over to Arnaud .

Rolf Woller: In the interest of time, as always, I will not read it out to you loud. With that, I hand over to Arno. Arno, please go ahead.

Rolf Woller: With that, I hand over to Arno. Arno, please go ahead. Yeah.

Speaker #3: Arnaud , please go ahead . Yeah . Thank you . Ralf . Ladies and gentlemen , our nine month results continue to tell a story with two sides .

Arno Antlitz: Yeah, thank you, Rolf. Ladies and gentlemen, our nine-month results continue to tell a story with two sides. On one hand, there's a huge success of our products, combustion engine, and electric vehicles. The positive momentum in order intake investment in Europe persists and is reflecting the strong support from our customers. Our global BEV share increased to 11%. In Europe, every fourth electric vehicle is delivered from the Volkswagen Group. We make further progress in implementing our strategy and in the restructuring of our business. However, operating results in Q3 was negative at -1.3 billion EUR. Two main reasons for that. First, the successful ramp-up of electric vehicles continues to dilute the operative margin.

Arno Antlitz: Thank you, Rolf. Ladies and gentlemen, our nine-month results continue to tell a story of two sides. On the one hand, there's a huge success of our products, combustion engine and electric vehicles. The positive momentum in order intake in Western Europe persists and is reflecting the strong support from our customers. Our global BEV share increased to 11%. In Europe, every fourth electric vehicle is delivered from the Volkswagen Group. We make further progress in implementing our strategy and in the restructuring of our business. However, operating result in Q3 was negative at minus €1.3 billion. Two main reasons for that. First, the successful ramp-up of electric vehicles continues to dilute the operative margin.

Speaker #3: On the one hand , there's a huge success of our products . Combustion engine and electric vehicles . The positive momentum in order intake in Western Europe persists and is reflecting the strong support from our customers .

Speaker #3: Our global Bev share increased to 11% in Europe . Every fourth electric vehicle is delivered from the Volkswagen Group , and we make further progress in implementing our strategy and in the restructuring of our business .

Speaker #3: However , operating results in Q3 was negative at -€1.3 billion , two main reasons for that . First , the successful ramp up of electric vehicle continues to dilute the operating margin on top .

Arno Antlitz: On top, results were significantly impacted by headwinds of €5.3 billion in the third quarter, mainly by costs related to a realignment of Porsche product strategy and the goodwill impairment of our stake in Porsche in the combined magnitude of €4.7 billion and the increased U.S. tariffs of about €800 million. Including these effects, including these impacts, we achieved a 5% margin in Q3, which we consider to be a decent performance in the current economic environment. I really want to thank you, say thank you to our teams worldwide for the efforts and the dedication and their commitment. However, we expect the tariffs to stay before special effects, but including tariffs, we stand at 4.5% margin after nine months and a net cash flow of €1.8 billion.

Arno Antlitz: On top, results were significantly impacted by headwinds of EUR 5.3 billion in Q3, mainly by costs related to realignment of Porsche product strategy and the goodwill impairment of our stake in Porsche in the combined magnitude of EUR 4.7 billion and the increased US tariffs of about EUR 800 million. During these impacts, we achieved a 5% margin in Q3, which we consider to be a decent performance in the current economic environment. I really want to say thank you to our teams worldwide for the efforts, the dedication, and their commitment. However, we expect the tariffs to stay. Before special effects, but including tariffs, we stand at 4.5% margin after 9 months and a net cash flow of EUR 1.8 billion.

Speaker #3: Results were significantly impacted by headwinds of 5.3 billion in the third quarter , mainly by cost related to realignment of Porsche product strategy and the goodwill impairment of our stake in Porsche in the combined magnitude of €4.7 billion and the increased US tariffs of about €800 million during these effects , including these impacts , we achieved a 5% margin in Q3 , which we consider to be a decent performance in the current economic environment , and I really want to thank you , say thank you to our teams worldwide for the efforts and the dedication and their commitment .

Speaker #3: However, we expect the tariffs to stay before special effects, but including tariffs. We stand at a 4.5% margin after nine months and a net cash flow of $1.8 billion.

Speaker #3: These figures clearly show that we need to step up our efforts to reduce costs and increase productivity in all brands and units to strengthen the resilience of the Volkswagen Group.

Arno Antlitz: These figures clearly show that we need to step up our efforts to reduce costs and increase productivity in all brands and units to strengthen the resilience of the Volkswagen Group. With that, let us dive straight into the presentation with the key developments in the quarter before we continue with the financial results in more detail. As said, we continue to see strong product momentum as highlighted at the IAA in Munich. Here, Brand Group Core presented the new urban BEV family complementing the BEV product lineup with very attractive entry-level offering from autumn 2026 onwards. Audi unveiled its Concept C, which exemplifies the brand's new design philosophy and spirit. The third quarter also saw the launches of two key models: the all-new T-Roc, one of Volkswagen brand's bestsellers, hitting the markets with enhanced design and state-of-the-art technologies.

Arno Antlitz: These figures clearly show that we need to step up our efforts to reduce costs and increase productivity in all brands and units to strengthen the resilience of the Volkswagen Group. With that, let us dive straight into the presentation with the key developments in the quarter before we continue with the financial results in more detail. As said, we continue to see strong product momentum as highlighted at the IAA in Munich. Here, Brand Group Core presented the new urban BV family, complementing the BV product lineup with very attractive entry-level offering from autumn 2026 onwards. Audi unveiled its Concept C, which exemplifies the brand's new design, philosophy, and spirit. The Q3 also saw the launches of two key models, the all-new T-Roc, one of Volkswagen brand's bestsellers, hitting the markets with enhanced design and state-of-the-art technologies.

Speaker #3: With that , let us dive straight into the presentation with the key developments in the quarter before we continue with the financial results in more detail .

Speaker #3: As I said, we continue to see strong product momentum, as highlighted at the IAA in Munich. The brand group presented the new urban family, complementing the product lineup with a very attractive entry-level offering.

Speaker #3: From autumn 2026 onwards , Audi unveiled its concept C , which exemplifies the brand's new design philosophy and spirit . The third quarter also saw the launches of two key models the all new T-Roc , one of Volkswagen brands bestsellers hitting the markets with enhanced design and state of the art technologies .

Speaker #3: And the new E5 Sportback from Audi's China , exclusive for letter brand has just been launched . The Audi A5 Sportback has been well received by the market , and first deliveries to customers have been made .

Arno Antlitz: The new A5 Sportback from Audi's China-exclusive four-letter brand has just been launched. The Audi A5 Sportback has been well received by the market, and first deliveries to customers have been made. Back to the financial results and starting with volumes. Global deliveries to customers in the first nine months increased to 6.6 million vehicles, 1% above the prior year period. Order intake in Western Europe continued its strong trajectory, both on the combustion engine vehicle side and on the BEVs, reflecting the positive reception of our upgraded model portfolio by our customers. Order book in Western Europe stands at 885,000 vehicles at the end of September. This is about 4% above the level at the end of the year 2024. BEV order intake increased by 64%, and electric vehicles account now for 25% of the total order book.

Arno Antlitz: The new AUDI E5 Sportback from Audi's China-exclusive AUDI brand has just been launched. The Audi A5 Sportback has been well-received by the market, and first deliveries to customers have been made. Back to the financial results and starting with volumes. Global deliveries to customers in the first nine months increased to 6.6 million vehicles, 1% above the prior year period. Order intake in Western Europe continued its strong trajectory, both on the combustion engine vehicle side and on the BEVs, reflecting the positive reception of our upgraded model portfolio by our customers. Order book in Western Europe stands at 885,000 vehicles at the end of September. This is about 4% above the level at the end of the year 2024.

Speaker #3: Back to the financial results, and starting with volumes: global deliveries to customers in the first nine months increased to 6.6 million vehicles, 1% above the prior year period.

Speaker #3: Order intake in Western Europe continued its strong trajectory both on the combustion engine , vehicle side and on the BEVs , reflecting the positive reception of our upgraded model portfolio by our customers .

Speaker #3: Order book . Invest in Europe stands at 885,000 vehicles at the end of September . This is about 4% above the level at the end of the year 2024 .

Speaker #3: Bev order intake increased by 64% and electric vehicles account now for 25% of the total order book . We recorded strong delivery growth of 9% in Europe in the first .

Arno Antlitz: BEV order intake increased by 64%. Electric vehicles account now for 25% of the total order book. We recorded strong delivery growth of 9% in Europe in Q3, thus accelerating the positive trend seen in the first half of the year. Year to date, we stand at +4%. South America achieved even double-digit growth in Q3 and year to date. In contrast, North America recorded a decline of -10% in Q3. This is largely the result of trade uncertainties and the implementation of measures to mitigate effects from increased tariffs. Year to date, we stand at -8%. In China, we recorded a decline of 7% in Q3 and 4% year to date in line with our planning.

Arno Antlitz: We recorded strong delivery growth of 9% in Europe in the third quarter, thus accelerating the positive trend seen in the first half of the year. Year to date, we stand at plus 4%. South America achieved even double-digit growth in the quarter and year to date. In contrast, North America recorded a decline of minus 10% in Q3. This is largely the result of trade uncertainties and the implementation of measures to mitigate effects from increased tariffs. Year to date, we stand at minus 8%. In China, we recorded a decline of 7% in the quarter and 4% year to date in line with our planning. Despite lower BEV sales in China, global deliveries of battery electric vehicles improved by 42% year to date to 718,000 units. The share in group deliveries increased to 11% versus 8% one year ago. This was particularly due to strong growth in Europe.

Speaker #3: In the third quarter, thus accelerating the positive trend seen in the first half of the year. Year to date, we stand at 4%.

Speaker #3: South America achieved even double digit growth in the quarter and year to date . In contrast , North America recorded a decline of -10% in Q3 .

Speaker #3: This is largely the result of trade uncertainties and the implementation of measures to mitigate effects from increased tariffs . Year to date , we stand at minus 8% .

Speaker #3: In China . We recorded a decline of 7% in the quarter and 4% year to date . In line with our planning . Despite lower Bev sales in China , global deliveries of battery electric vehicles improved by 42% year to date to 718,000 units .

Arno Antlitz: Despite lower BV sales in China, global deliveries of battery electric vehicles improved by 42% year to date to 718,000 units. The share in group deliveries increased to 11% versus 8% 1 year ago. This was particular due to strong growth in Europe. Our BV share in Western Europe almost doubled in the first nine months, 2025 to more than 20%. With that, let's move on to the financial and operating performance of the Volkswagen Group in the first nine months of 2025. On the back of rising vehicle sales, group sales revenue increased by 1% to EUR 239 billion. The operating result came in at EUR 5.4 billion. This is 60% or EUR 7.4 billion below the prior year.

Speaker #3: The share in club deliveries increased to 11% versus 8% one year ago . This was particular due to strong growth in Europe . Our BV share in Western Europe almost doubled in the first nine months of 2025 to more than 20% .

Arno Antlitz: Our BEV share in Western Europe almost doubled in the first nine months of 2025 to more than 20%. With that, let's move on to the financial and operating performance of the Volkswagen Group in the first nine months of 2025. On the back of rising vehicle sales, group sales revenue increased by 1% to €239 billion. The operating result came in at €5.4 billion. This is 60% or €7.4 billion below the prior year. Accordingly, the operating return on sales stood at 2.3%. The result after nine months includes special effects in a magnitude of €7.5 billion, mainly increased U.S. tariffs in a magnitude of €2.1 billion, €2.7 billion from goodwill impairment Porsche, and €2 billion related to the Porsche realignment as announced on the 19th of September.

Speaker #3: With that, let's move on to the financial and operating performance of the Volkswagen Group. In the first nine months of 2025.

Speaker #3: On the back of rising vehicle sales, group sales revenue increased by 1% to €239 billion. The operating result came in at €5.4 billion.

Speaker #3: This is 60% , or €7.4 billion , below the prior year . Accordingly , the operating return on sales to that 2.3% . The result after nine months includes special effects in a magnitude of €7.5 billion , mainly increased US tariffs in the magnitude of €2.1 billion , €2.7 billion from goodwill impairment .

Arno Antlitz: Accordingly, the operating return on sales stood at 2.3%. The result after 9 months includes special effects in a magnitude of EUR 7.5 billion, mainly increased US tariffs in a magnitude of EUR 2.1 billion, EUR 2.7 billion from goodwill impairment Porsche, and EUR 2 billion related to the Porsche realignment, as announced on 19 September. Excluding these effects, the margin of the 9 months stands at 5.4%, which we consider a decent performance in the current environment. However, as said before, we expect the tariffs to stay. Excluding the non-recurring effects, but including costs related to the US tariff, the group operating margin would have amounted to 4.5%.

Speaker #3: Porsche and $2 billion related to the Porsche realignment, as announced on the 19th of September. Excluding these effects, the margin of the nine months stands at 5.4%, which we consider decent performance in the current environment.

Arno Antlitz: Excluding these effects, the margin of the nine months stands at 5.4%, which we consider a decent performance in the current environment. However, as said before, we expect the tariffs to stay, excluding the non-recurring effects, but including costs related to the U.S. tariffs. The group operating margin would have amounted to 4.5%. These figures clearly show that we need to intensify our cost reduction efforts, must advance or pull forward parts of the efficiency programs, and find new ideas. Profit before tax largely followed the development of the operating results with higher income from participations and valuation effects outweighing a more negative interest result. Profit after tax declined by 61% to €3.4 billion as a result of a higher tax rate. Worth noting that the goodwill impairment is not tax deductible. Net cash flow in the automotive division totaled €1.8 billion in the first nine months.

Speaker #3: However , as said before , we expect the tariffs to stay excluding the non-recurring effects , but including cost related to the US tariffs .

Speaker #3: The group operating margin would have amounted to 4.5%, and these figures clearly show that we need to intensify our cost reduction efforts, advance or pull forward parts of the efficiency programs, and find new ideas.

Arno Antlitz: These figures clearly show that we need to intensify our cost reduction efforts, must advance or pull forward parts of the efficiency programs and find new ideas. Profit before tax largely followed the development of the operating results with higher income from participations and valuation effects, outreading a more negative interest result. Profit after tax declined by 61% to EUR 3.4 billion as a result of a higher tax rate. Worth noting that the goodwill impairment is not tax-deductible. Net cash flow in the automotive division totaled to EUR 1.8 billion in the first 9 months. Here, a significant improved cash flow from working capital management and lower investment spend more than compensated for the lower operating profit. Operating cash flow includes cash out of EUR 1.9 billion for US tariffs and about EUR 1 billion related to restructuring measures.

Speaker #3: Profit before tax largely followed the development of the operating results, with higher income from participations and valuation effects outweighing a more negative interest.

Speaker #3: Results . Profit after tax declined by 61% to €3.4 billion . As a result of a higher tax rate . Worth noting that the goodwill impairment is not tax deductible .

Speaker #3: Net cash flow in the automotive division totaled €1.8 billion in the first nine months. Here, a significant improvement in cash flow from working capital management and lower investment spending more than compensated for the lower operating profit.

Arno Antlitz: Here, a significantly improved cash flow from working capital management and low investment spend more than compensated for the lower operating profit. Operating cash flow includes cash out of €1.9 billion for U.S. tariffs and about €1 billion related to restructuring measures. Not to forget the about €0.9 billion we had to spend in the second quarter for the acquisition of additional shares in Rivian Automotive Inc. Automotive net liquidity in the first nine months declined by €3.4 billion compared to year end 2024. Further to the operating cash flow, major factors for the development of the net liquidity year to date were dividends and interest payments to hybrid bondholders of in total €4.4 billion and M&A expenditures of €1.5 billion. This was partly compensated by operating cash flow. The other bucket includes negative €1.2 billion effects from changes in these liabilities.

Speaker #3: Operating cash flow includes cash out of €1.9 billion for US tariffs and about 1 billion related to restructuring measures . Not to forget , about €0.9 billion , we had to spend in the second quarter for the acquisition of an additional shares in Rivian .

Arno Antlitz: Not to forget, about EUR 0.9 billion we had to spend in Q2 for the acquisition of additional shares in Rivian. Automotive net liquidity in the first nine months declined by EUR 3.4 billion compared to year-end 2024. Further to the operating cash flow, major factors for the development of the net liquidity year to date were dividend and interest payments to hybrid bondholders of, in total, EUR 4.4 billion and M&A expenditures of EUR 1.5 billion. This was partly compensated by operating cash flow. Other bucket includes negative EUR 1.2 billion effects from changes in these liabilities. Overall, at EUR 31 billion at the end of September, net liquidity is at a solid level. Moving on to the performance of the divisions.

Speaker #3: Automotive net liquidity in the first nine months declined by €3.4 billion compared to year end 2020 . For further to the operating cash flow , major factors for the development of the net liquidity year to date were dividends and interest payments to hybrid bond holders of in total , €4.4 billion and M&A expenditures of €1.5 billion .

Speaker #3: This was partly compensated by operating cash flow . The other bucket includes -1.2 billion effects from changes in lease liabilities . Overall , at €31 billion at the end of September , net liquidity is at a solid level .

Arno Antlitz: Overall, at €31 billion at the end of September, net liquidity is at a solid level. Moving on to the performance of the divisions. Passenger cars recorded an operating result of €2.2 billion in the first nine months of 2025, 74% below prior year period. Commercial vehicles saw a decline of 46% to €1.7 billion, and this corresponds to an operative margin of 5.4%. Financial services division strongly improved the operating result by 40% to €3.1 billion. Have a look on the drivers of the operating result in the passenger car segment. Volume had a positive impact of €1.3 billion. Price mix was combined negative at €3.0 billion. This was mainly the result of the dilutive effects from the higher BEV share and unfavorable regional and brand mix effects.

Speaker #3: Moving on to the performance of the divisions , passenger cars recorded an operating result of €2.2 billion in the first nine months of 20 25 , 74% below prior year period .

Arno Antlitz: Passenger cars recorded an operating result of EUR 2.2 billion in the first 9 months of 2025, 74% below prior year period. Commercial vehicles saw a decline of 46% to EUR 1.7 billion. This corresponds to an operative margin of 5.4%. Financial services division strongly improved the operating result by 40% to EUR 3.1 billion. Have a look on the drivers of the operating result in the passenger car segment. Volume had a positive impact of EUR 1.3 billion. Price mix was combined negative at EUR 3.0 billion. This was mainly the result of the dilutive effect from the higher BEV share and unfavorable regional and brand mix effects.

Speaker #3: Commercial vehicles saw decline of 46% to €1.7 billion , and this corresponds to an operative margin of 5.4% . Financial services Division strongly improved the operating result by 40% to €3.1 billion .

Speaker #3: Have a look on the drivers of the operating result in the passenger car segment . Volume had a positive impact of €1.3 billion .

Speaker #3: Price mix was combined negative at €3.0 billion . This was mainly the result of the dilutive effect from the higher BV share and unfavorable regional and brand mix effects .

Speaker #3: It's worth noting that volume , price mix in Q3 was almost a wash and in line what we guided for at the beginning of the year .

Arno Antlitz: It's worth noting that volume price mix in Q3 was almost a wash and in line with what we guided for at the beginning of the year. Provisions related to European and U.S. emissions regulations had a negative net impact of €0.4 billion after nine months. Exchange rate movements posed a headwind mainly driven by negative valuation effects of balance sheet positions and foreign exchange rates. Product costs improved by €1.3 billion. Last but not least, fixed costs had a negative effect of €2.5 billion. However, when excluding the impacts from Porsche realignment and the goodwill impairment of in total €4.7 billion, fixed costs improved compared to the prior year period. This is also visible when taking a more detailed look at the overhead cost development. In the first nine months of the year, overhead costs in the Automotive Division are reduced by €1 billion.

Arno Antlitz: It's worth noting that volume price mix in Q3 was almost abortion in line, what we guided for at the beginning of the year. Provisions related to European and US emissions regulations had a negative net impact of EUR 0.4 billion after nine months. Exchange rate movements posed a headwind, mainly driven by negative valuation effects of balance sheet positions and foreign exchange rates. Product costs improved by EUR 1.3 billion. Last but not least, fixed costs had a negative effect of EUR 2.5 billion. When excluding the impact from Porsche realignment and the goodwill impairment of, in total, EUR 4.7 billion, fixed costs improved compared to the prior year period. This is also visible when taking a more detailed look at the overhead cost development.

Speaker #3: Provisions related to European and U.S. emissions regulations had a negative net impact of €0.4 billion. After nine months, changing rate movements posed a headwind, mainly driven by negative valuation effects of balance sheet positions in foreign exchange rates. Product costs improved by €1.3 billion.

Speaker #3: Last but not least , fixed costs had a negative effect of 2.5 billion . However , when excluding the impact from Porsche alignment and the goodwill impairment of in total 4.7 billion fixed costs improved compared to the prior year period .

Speaker #3: This is also visible when taking a more detailed look at the overhead cost development . In the first nine months of the year , overhead costs in the automotive division are reduced by €1 billion .

Arno Antlitz: In the first 9 months of the year, overhead costs in the automotive division are reduced by EUR 1 billion. Accordingly, the overhead cost ratio improved by 60 basis points, with positive momentum in Q2 and Q3 in particular. Increases at Traton and the ramp-up of new businesses like Battery and Scout are more than compensated for by improvements, specifically Brand Group Core and Brand Group Sport & Luxury. The good news to our teams worldwide is the efforts to reduce cost base and increase robustness are paying off, with more to come over the course of the following months and years. For Brand Volkswagen, as well as the group in total, the stringent implementation of the performance program is key to achieve a sustainable reduction of overhead costs. As you can see on the left side of the chart, the program to Volkswagen is delivering tangible results.

Speaker #3: Accordingly , the overhead cost ratio improved by 60 basis points with positive momentum in the second and third quarter . In particular , increases at Traton and ramp up of new businesses like Battery and Scout are more than compensated for by improvements .

Arno Antlitz: Accordingly, the overhead cost ratio improved by 60 basis points with positive momentum in the second and third quarter in particular. Increases at Traton and the ramp-up of new businesses like Battery and Scout are more than compensated for by improvements, specifically Brand Group Core and Brand Group Sport Luxury. The good news to our teams worldwide is the efforts to reduce cost base and increase robustness are paying off, with more to come over the course of the following months and years. For brand Volkswagen, as well as the group in total, the stringent implementation of the performance program is key to achieve a sustainable reduction of overhead costs. As you can see on the left side of the chart, the program to Volkswagen is delivering tangible results.

Speaker #3: Specifically , brand group , core and brand group sport luxury . The good news to our teams worldwide is the efforts to reduce cost , base and increase robustness are paying off , with more to come over the course of the following months and years .

Speaker #3: For the brand Volkswagen, as well as the group in total, the stringent implementation of the performance program is key to achieving a sustainable reduction of overhead costs.

Speaker #3: As you can see on the left side of the chart , the program to Volkswagen is delivering tangible results . In the first nine months of 2025 , Volkswagen reduced the number of active employees at its German sites by around 6000 , or 6% overall , since the end of 2023 , headcount was reduced by approximately 11,000 .

Arno Antlitz: In the first nine months of 2025, Volkswagen reduced the number of active employees at its German sites by around 6,000 or 6%. Overall, since the end of 2023, headcount was reduced by approximately 11,000. In addition, Audi, Porsche, and Cariad, in particular, are pushing ahead with their respective programs. As a result, headcount in Germany on group level has been reduced by a total of 7,000 in the first nine months. Let's now move on to the development of the brand groups, the platforms, and the financial services business. Every business starts with the customer and the top line. Here, Brand Group Core recorded solid levels of revenue growth of 5% year on year. The operating result amounted to €4.7 billion. The margin stood at 4.4%, broadly in line with prior year figure despite tariffs and restructuring costs incurred totaling almost €1 billion.

Arno Antlitz: In the first 9 months of 2025, Volkswagen actually reduced the number of active employees at its German sites by around 6,000 or 6%. Overall, since the end of 2023, headcount was reduced by approximately 11,000. In addition, Audi, Porsche and CARIAD in particular are pushing ahead with their respective programs. As a result, headcount in Germany on group level has been reduced by a total of 7,000 in the first 9 months. Let's now move on to the development of the brand groups, the platforms and the financial services business. Every business starts with the customer and the top line. Here, Brand Group Core recorded solid levels of revenue growth of 5%, respectively year-on-year. The operating result amounted to EUR 4.7 billion.

Speaker #3: In addition, Audi, Porsche, and Carrier, in particular, are pushing ahead with their respective programs. As a result, headcount in Germany, on a group level, has been reduced by a total of 7,000.

Speaker #3: In the first nine months . Let's now move on to the development of the brand groups . The platforms and the financial services business .

Speaker #3: Every business starts with the customer and the top line here , brand group , core recorded solid levels of revenue , growth of 5% , respectively year on year .

Speaker #3: The operating result amounted to €4.7 billion. The margin stood at 4.4%, broadly in line with the prior year figure, despite tariffs and restructuring costs incurred totaling almost €1 billion.

Arno Antlitz: The margin stood at 4.4%, broadly in line with prior year figure, despite tariffs and restructuring costs incurred totaling almost EUR 1 billion. Volume momentum at Audi is increasingly paying off. Brand Group Progressive recorded sales revenue significantly above last year with a plus of 5% driven by growth in unit sales. Despite the strong top line, operating result came in 26% lower year-over-year at EUR 1.6 billion, corresponding to a margin of 3.2%. Positive effects from volume growth were compensated for, in particular by restructuring, increased US tariffs, and a strong increase in the BEV share. The underlying margin, calculated based like we said before, Brand Group Progressive stands at 5.7% after nine months. Operating results of Porsche automotive business came in at -EUR 0.2 billion.

Speaker #3: The momentum at Audi is increasingly paying off, as the Group recorded sales revenue significantly above last year, with a plus of 5%, driven by growth in unit sales.

Arno Antlitz: Product momentum at Audi is increasingly paying off. Brand Group Progressive recorded sales revenue significantly above last year with a plus of 5% driven by growth in unit sales. Despite the strong top line, operating result came in 26% lower year on year at €1.6 billion, corresponding to a margin of 3.2%. Positive effects from volume growth were compensated for, in particular by restructuring, increased U.S. tariffs, and the strong increase in the BEV share. The underlying margin calculated based like we said before, Brand Group Progressive stands at 5.7% after nine months. Operating results of Porsche automotive business came in at minus €0.2 billion. The loss is largely due to costs incurred related to a realignment of the product strategy, totaling €1.8 billion in the third quarter. In addition, headwinds resulted from a significantly lower sales volume, in particular in China, U.S.

Speaker #3: Despite the strong top-line, operating results came in 26% lower year on year at €1.6 billion, corresponding to a margin of 3.2%.

Speaker #3: Positive effects from volume growth were compensated for, in particular, by restructuring, increased U.S. tariffs, and the strong increase in the BV share.

Speaker #3: The underlying margin is calculated based on... Like we said before, the brand group Progressive stands at 5.7% after nine months. The operating results of the Porsche Automotive business came in at -€0.2 billion.

Speaker #3: The loss is largely due to costs incurred related to realignment of the product strategy , totaling 1.8 billion in the third quarter . In addition , headwinds resulted from a significantly lower sales volume , in particular in China , US tariffs , as well as extraordinary charges recorded in the first half related to further strategic realignment measures .

Arno Antlitz: The loss is largely due to costs incurred related to a realignment of the product strategy totaling EUR 1.8 billion in Q3. In addition, headwinds resulted from a significantly lower sales volume, in particular in China, US tariffs, as well as extraordinary charges recorded in the first half related to further strategic realignment measures and for battery-related activities. Let's have a short look at the Brand Group Core. Volkswagen Passenger Cars improved profitability by 30 basis points to 2.3% despite significant headwinds from US tariffs. Škoda impressively continued their exceptional performance in a difficult market environment. First-class products on Volkswagen Group platforms combined with a competitive cost base.

Arno Antlitz: tariffs, as well as extraordinary charges recorded in the first half related to further strategic realignment measures and for battery-related activities. Let's have a short look at the Brand Group Core. Volkswagen Passenger Cars improved profitability by 30 basis points to 2.3% despite significant headwinds from U.S. tariffs. Skoda impressively continued their exceptional performance in a difficult market environment. First-class products on Volkswagen Group platforms combined with a competitive cost base. What has margin continued to stay strong at 8%, has strongly improved unit sales and sales revenue. The slight decline in the margin of 30 basis points versus prior year period is a result of significantly higher BEV sales, namely driven by the success of the T-Roc. Leaving the non-operational effects aside for a moment, the performance of the Brand Group Core and Volkswagen brand specifically was pretty solid. The increased U.S.

Speaker #3: And for battery related activities . Let's have a short look at the brand group core Volkswagen passenger cars improved profitability by 30 basis points to 2.3% , despite significant headwinds from US tariffs .

Speaker #3: Skoda impressively continued their exceptional performance in a difficult market environment . First class products on Volkswagen Group platforms , combined with a competitive cost base margin , continued to stay strong at 8% at strongly improved unit sales and sales revenue .

Arno Antlitz: Whereas margin continued to stay strong at 8%, a strongly improved unit sales and sales revenue, the slight decline in the margin of 30 basis points versus prior year period is a result of significantly higher BEV sales, namely driven by the success of the Škoda Elroq. Leaving the non-operation effects aside for a moment, the performance of the Brand Group Core and Volkswagen brand specifically was pretty solid. The increased US tariffs and costs incurred for restructuring activities negatively impacted profitability. Excluding these effects, Volkswagen Passenger Cars recorded a margin of 4%, which is the target the brand has set itself in the beginning of the year. One word of caution here again, the structuring expenses burden result now, but help us to achieve a leaner cost structure in the future.

Speaker #3: The slight decline in the margin of 30 basis points versus prior year period is a result of significantly higher PV sales , mainly driven by the success of the Rock .

Speaker #3: Leaving the non-operational effects aside for a moment, the performance of the brand group Core and Volkswagen brand specifically was pretty solid. The increased U.S. tariffs and costs incurred for restructuring activities negatively impacted profitability.

Arno Antlitz: tariffs and costs incurred for restructuring activities negatively impacted profitability. Excluding these effects, Volkswagen Passenger Cars recorded a margin of 4%, which is the target the brand has set itself in the beginning of the year. One word of caution here again, restructuring expenses burden the result now, but help us to achieve a leaner cost structure in the future. However, we need to prepare for a scenario where tariffs are to stay as part of the operating business. This clearly means the restructuring work must continue, and we even need to speed up our measures. CARIAD continues to increase license revenue backed by increased sales volume on the 1.1 and the 1.2. Sales revenue rose accordingly to around €1 billion in the first nine months. Operating loss was reduced to €1.5 billion, mainly as a result of the implementation of the announced restructuring measures.

Speaker #3: Excluding these effects, Volkswagen passenger cars recorded a margin of 4%, which is the target the brand set for itself at the beginning of the year.

Speaker #3: One word of caution here again , the structuring expenses burden result now , but help us to achieve a leaner cost structure in a few in the future .

Speaker #3: However , we need to prepare for a scenario where tariffs are to stay as part of the operating business , and this clearly means the structuring work must continue , and we even need to speed up our measures .

Arno Antlitz: However, we need to prepare for a scenario where tariffs are to stay as part of the operating business. This clearly means the restructuring work must continue, and we even need to speed up our measures. CARIAD continues to increase license revenue backed by increased sales volume on the 1.1 and the 1.2. Sales revenue rose accordingly to around EUR 1 billion in the first nine months. Operating loss was reduced to EUR 1.5 billion, mainly as a result of the implementation of the announced restructuring measures. PowerCo, the ongoing ramp-up of the Salzgitter plant, intensifying construction works at the Valencia and the St. Thomas plant, and the buildup of the organization are continuing. As a result, PowerCo recorded a significant expansion of the operating loss to EUR 1.1 billion year to date.

Speaker #3: It continues to increase license revenue, backed by increased sales volume. On the 1.1 and 1.2, sales revenue rose accordingly to around $1 billion in the first nine months. The operating loss was reduced to $1.5 billion, mainly as a result of the implementation of the announced restructuring measures.

Speaker #3: The power the ongoing ramp up of the Salzgitter plant intensifying construction works at the Valencia and the Saint Thomas plant , and the build up of the organization are continuing as a result , Powercor recorded a significant expansion of the operating loss to €1.1 billion year to date .

Arno Antlitz: PowerCo, the ongoing ramp-up of the Salzgitter plant, intensifying construction works at the Valencia and the St. Thomas plants, and the build-up of the organization are continuing. As a result, PowerCo recorded a significant expansion of the operating loss to €1.1 billion year to date. Traton recorded a decline of 9% both in vehicle sales and sales revenue. Truck sales were weak in particular in Latin America and North America. Sales revenue in Europe was stable. As a result of the lower sales volume, increases in fixed costs, and exchange rates, the operating profit declined by 46% to €1.7 billion. Our financial services business continued to perform well in the period under review, supported by improved contract volume, plus 5% specifically in Europe, and an expansion of the portfolio margin.

Speaker #3: Brighton recorded a decline of 9% , both in vehicle sales and sales revenue . Truck sales were weak , in particular in Latin America , North America , sales revenue in Europe was stable as a result of lower sales volume increases in fixed costs and exchange rate .

Arno Antlitz: Brighton recorded a decline of 9% both in vehicle sales and sales revenue. Truck sales were weak, in particular in Latin America and North America. Sales revenue in Europe was stable. As a result of the lower sales volume, increases in fixed cost, and exchange rate, the operating profit declined by 46% to EUR 1.7 billion. Our financial services business continued to perform well in the period under review, supported by improved contract volume, +5%, specifically in Europe, and an expansion of the portfolio margin. In addition, the used car business benefited from still positive remarketing results, while the normalization of used car prices continued in the quarter. The credit loss ratio continues to be on a solid level. As a result, operating profit increased to a strong EUR 3.1 billion.

Speaker #3: The operating profit declined by 46% to €1.7 billion. Our financial services business continued to perform well in the period under review, supported by improved contract volume, with a 5% increase specifically in Europe, and an expansion of the portfolio margin.

Speaker #3: In addition , the used car business benefited from still positive remarketing results . While the normalization of used car prices continued in the quarter , the credit loss ratio continues to be on a solid level .

Arno Antlitz: In addition, the used car business benefited from still positive remarketing results, while the normalization of used car prices continued in the quarter. The credit loss ratio continues to be on a solid level. As a result, operating profit increased to a strong €3.1 billion. Investment spend for CapEx and R&D in the automotive division declined by €2 billion to €24.3 billion in the first nine months of the year compared to the prior year period. We remain fully committed to sustainably reducing investment spend in the years to come, despite significant investments required for the transformation of the portfolio and the development of new business. The initiatives to reduce complexity and actively manage our portfolio participations continue with full force as we speak. Moving on to the performance of our joint ventures in China, the market environment remains highly competitive, with pressure specifically in the premium segment.

Speaker #3: As a result , operating profit increased to a strong €3.1 billion . Investment spend for CapEx and R&D in automotive division declined by 2 billion to €24.3 billion in the first nine months of the year , compared to the prior year period .

Arno Antlitz: Investment spend for CapEx and R&D in the automotive division declined by EUR 2 billion to EUR 24.3 billion in the first nine months of the year compared to the prior year period. We remain fully committed to sustainably reducing investment spend in the years to come, despite significant investments required for the transformation of the portfolio and the development of new business. The initiatives to reduce complexity and actively manage our portfolio participations continue with full force as we speak. Moving on to the performance of our joint ventures in China. The market environment remains highly competitive, with pressure specifically in the premium segment. Pricing and incentives levels, however, seem to have stabilized sequentially, but on a subdued level. Unit sales were 1% lower year-on-year at 1.9 million vehicles, driven by declines in premium and BEVs.

Speaker #3: We remain fully committed to sustainably reducing investment spend in the years to come, despite significant investments required for the transformation of the portfolio and the development of new business.

Speaker #3: Initiatives to reduce complexity and actively manage our portfolio of participations . Continue with full force as we speak . Moving on to the performance of our joint ventures in China , the market environment remains highly competitive with pressure specifically in the premium segment , pricing and incentives levels .

Arno Antlitz: Pricing and incentives levels, however, seem to have stabilized sequentially, but on a subdued level. Unit sales were 1% lower year on year at 1.9 million vehicles, driven by declines in premium and BEVs. In contrast, ICE volumes held up very well. As a result, the proportion of operating result of our joint ventures in China came in at €744 million in the first three quarters of 2025. This is about one-third below the prior year basis, but well in line with our target of up to €1 billion for the full year. This brings me to the full-year outlook. Building on what we have achieved year to date, we factor in the following key assumptions for the final quarter. The current U.S. tariff situation is expected to pose headwinds in terms of cost, cash out, and volumes.

Speaker #3: However , seem to have stabilized sequentially , but on a subdued level , unit sales were 1% lower year on year at 1.9 million vehicles , driven by declines in premium and BEVs .

Speaker #3: In contrast , ice volumes held up very well . As a result , the proportional of operating result of our joint ventures in China came in at €744 million in the first three quarters of 2025 .

Arno Antlitz: In contrast, ICE volumes held up very well. As a result, the proportion operating result of our joint ventures in China came in at EUR 744 million in the first 3 quarters of 2025. This is about one-third below the prior year basis, but well in line with our target of up to EUR 1 billion for the full year. This brings me to the full year outlook. Building on what we have achieved year to date, we factor in the following key assumptions for Q4. The current US tariff situation is expected to pose headwinds in terms of cost, cash out, and volumes.

Speaker #3: This is about one third below the prior year basis . But well in line with our target of up to 1 billion for the full year .

Speaker #3: This brings me to the full year outlook . Building on what we have achieved year to date , we factor in the following key assumptions for the final quarter .

Speaker #3: The current US tariff situation is expected to pose headwinds in terms of cost , cash out and volumes continued . Support from the model offensive .

Arno Antlitz: Continued support from the model offensive, a further increase in the BEV share with respective effects on price and mix, increasing contributions from the implementation of our performance programs, a sequentially improved financial performance of the premium brands, and at the same time, our forecast is based on the assumption that there will be no supply bottlenecks for semiconductors. On that basis, we confirm the operating return on sales safely in the range of 2% to 3%. Given the financial performance year to date, there's even a chance to close the year in the upper half of the range. The investment ratio in the automotive division is expected to be in the range of 12% to 13%.

Arno Antlitz: Continued support from the model offensive, a further increase in the BEV share with respective effects on price and mix, increase in contributions from the implementation of our performance programs, a sequentially improved financial performance of the premium brands. At the same time, our forecast is based on the assumption that there will be no supply bottlenecks for semiconductors. On that basis, we confirm the operating return on sales safely in the range of 2% to 3%. Given the financial performance year-to-date, there's even a chance to close the year in the upper half of the range. Investment ratio in our Automotive division is expected to be in the range of 12% to 13%.

Speaker #3: A further increase in the BV share, with respective effects on price and mix, is expected to increase contributions from the implementation of our performance programs, as well as sequentially improved financial performance of the premium brands. At the same time, our forecast is based on the assumption that there will be no supply bottlenecks for semiconductors.

Speaker #3: On that basis , we confirm the operating return on sales safely in the range of 2 to 3% , given the financial performance year to date .

Speaker #3: There's even a chance to close the year in the upper half of the range . Investment ratio in automotive division is expected to be in the range of 12 to 13% .

Speaker #3: We also confirm our expectations for the automotive net cash flow at around zero , with a good chance to end positive depending on the operating performance and working capital movements in the first quarter .

Arno Antlitz: We also confirm our expectations for the automotive net cash flow at around zero, with a good chance to end positive depending on the operating performance and working capital movements in the fourth quarter. Ladies and gentlemen, we continue to make progress in the implementation of our strategy. Our product offensive is increasingly paying off, as evidenced by the positive order intake and top-line performance. We delivered a decent financial performance in the first nine months before considerable headwinds from special effects. However, reported numbers matter, and the operating margins stand at 2.3% after nine months. Even before non-recurring effects, our margin amounted to only 4.5%. This is not sustainable for our business model, in particular in light of the ongoing volatile geopolitical situation and market environment.

Arno Antlitz: We also confirm our expectations for the Automotive net cash flow at around zero, with a good chance to end positive, depending on the operating performance and working capital movements in Q4. Ladies and gentlemen, we continue to make progress in the implementation of our strategy. Our product offensive is increasingly paying off, as evidenced by the positive order intake and top line performance. We delivered additional financial performance in the first nine months before considerable headwinds from special effects. However, reported numbers matter. The operating margin stands at 2.3% after nine months. Even before non-recurring effects, our margin amounted to only 4.5%. This is not sustainable for our business model, in particular in light of the ongoing volatile geopolitical situation and market environment.

Speaker #3: In the fourth quarter . Ladies and gentlemen , we continue to make progress in the implementation of our strategy . Our product offensive is increasingly paying off as evidenced by the positive order intake and top line performance .

Speaker #3: We delivered a decent financial performance in the first nine months before considerable headwinds from special effects. However, reported numbers matter, and the operating margin stands at 2.3%.

Speaker #3: After nine months and even before non-recurring effects , our margin amounted to only 4.5% . And this is not sustainable for our business model .

Speaker #3: In particular , in light of the ongoing volatile geopolitical situation and market environment , it once underlines that we must stay fully focused on driving our strategic initiatives , improving the cost base with full force , and continue our initiatives to reduce complexity and increase execution speed .

Arno Antlitz: It underlines that we must stay fully focused on driving our strategic initiatives, improving the cost base with full force, and continue our initiatives to reduce complexity and increase execution speed. With that, I hand it back to Rolf. Thank you, Arno, for that comprehensive overview over our nine-month results and the third quarter. Before we move on to the Q&A, let me provide you with a financial calendar 2026. The next group event will be the release of our full-year results on March 10th. I think this was for the sake of completeness because this was a missing item. Let us now enter into our Q&A session, starting with our analysts and investors. I think actually it's star one in order to ask a question. We give it a couple of seconds before we see the first question on the screen. Here we go.

Arno Antlitz: It once underlines that we must stay fully focused on driving our strategic initiatives, improving the cost base with full force, and continue our initiatives to reduce complexity and increase execution speed. With that, I hand it back to Rolf.

Speaker #3: Is that I hand it back to Rolf . Thank you , Arnaud , for that comprehensive overview of our nine month results and the third quarter .

Rolf Woller: Thank you, Arno, for that comprehensive overview of our over 9-month results and the Q3. Before we move on to the Q&A, let me provide you with the financial calendar 2026. The next group event will be the release of our full year results on 10 March. I think this was for the sake of completeness and because this was missing, I think. Let us now enter into our Q&A session, starting with our analysts and investors. I think actually it's star one in order to ask a question. Yeah, we give it a couple of seconds before we see the first question on the screen. Here we go. The first one is from Patrick Hummel from UBS. Patrick, please go ahead.

Speaker #3: And before we move on to the Q&A , let me provide you with a financial calendar , 2026 the next group event will be the release of our full year results on March 10th .

Speaker #3: I think this was for the sake of completeness, and because this was missing, I think let us now enter into our Q&A session, starting with our analysts and investors.

Speaker #3: I think actually it's star one . In order to ask a question and yeah , we give it a couple of seconds before we see the first question on the screen .

Speaker #3: And here we go . The first one is from Patrick Hummel from UBS . Patrick , please go ahead .

Arno Antlitz: The first one is from Patrick Hummel from UBS. Patrick, please go ahead.

Speaker #4: Yeah . Thank you Rolf . Good morning Arnaud . Thanks . Thanks for taking my questions . I would like to ask first about the free cash flow .

Patrick Hummel: Yeah, thank you, Rolf. Good morning, Arno. Thanks for taking my questions. I would like to ask first about the free cash flow. Obviously, Q3 was solid, working capital driven, and you sound confident that it's gonna be above zero also for the full year. I'm just wondering, looking a little bit further ahead, what's really the deal here with free cash flow? We've read stories in the media about a big gap in your cash flow planning for 2026. We talked about investments that might be required in response to the tariffs.

[Analyst 1]: Yeah, thank you, Rolf. Good morning, Arno. Thanks for taking my questions. I would like to ask first about the free cash flow. Obviously, Q3 was solid, working capital-driven. You sound confident that it's going to be above zero also for the full year. I'm just wondering, looking a little bit further ahead, what's really the deal here with free cash flow? We've read stories in the media about a big gap in your cash flow planning for 2026. We talked about investments that might be required in response to the tariffs. I know the planning round hasn't been finished, but can you just help us to get a clearer picture how we should think about the free cash generation of the business in 2026 and the investments? Are they going to be stable? Are they going to come down? Yeah, any call you can give, highly appreciated.

Speaker #4: Obviously , Q3 was solid working capital driven and you sound confident that it's going to be above zero . Also , for the full year .

Speaker #4: So I'm just wondering looking a little bit further ahead , what's really the deal here with free cash flow ? We've read stories in the media about a big gap in your cash flow planning for 2026 .

Speaker #4: We talked about investments that might be required in response to the tariffs . So I know the planning round hasn't been finished , but can you just help us to get a clearer picture how we should think about free cash generation of the business in 2026 and the investments ?

Patrick Hummel: I know the planning round hasn't been finished, but can you just help us to get a clearer picture how we should think about the free cash generation of the business in 2026 and the investments? Are they gonna be stable? Are they gonna come down? Yeah, any call you can give, highly appreciated. And my second question relates to Brand Group Progressive or Audi specifically. You know, Q3 run rate would not even closely get us to where the company wants to be on a full-year basis. Either we're gonna get a very strong Q4 or Audi is not gonna make the goals. What's your latest take here? Should we expect such a steep increase driven by the product cycle at Audi in Q4?

Speaker #4: Are they going to be stable ? Are they going to come down ? Yeah . Any any color you can give . Highly appreciated .

Speaker #4: And my second question relates to brand group , Progressive or Audi specifically . You know . Q3 run rate would not even closely get us to where the company wants to be on a full year basis .

[Analyst 1]: My second question relates to Brand Group Progressive or Audi specifically. You know, Q3 run rate would not even closely get us to where the company wants to be on a full-year basis. Either we're going to get a very strong fourth quarter, or Audi is not going to make the goals. What's your latest take here? Should we expect such a steep increase driven by the product cycle at Audi in the fourth quarter? What happens if they don't deliver? Does your group guidance already account for Audi delivering outside of their guidance corridor, or at least at the very low end of it? How should we think about the trajectory in the coming couple of quarters at Audi? Thank you.

Speaker #4: So either we're going to get an very strong fourth quarter or Audi is not going to make the goals . What's what's your latest take here ?

Speaker #4: Should we expect such a steep increase driven by the product cycle at Audi in the fourth quarter ? And what happens if they don't deliver ?

Patrick Hummel: What happens if they don't deliver? Does your group guidance already account for Audi delivering outside of their guidance corridor or at least at the very low end of it? Yeah, how should we think about the trajectory in the coming couple of quarters at Audi? Thank you.

Speaker #4: Does your group guidance already account for Audi delivering outside of their guidance corridor ? Or at least at the very low end of it ?

Speaker #4: And yeah , how should we think about the trajectory in the coming couple of quarters at Audi ? Thank you .

Speaker #3: Patrick , thanks very much for your questions . So I mean , for obvious reasons , I don't want to comment on , on , on , on the press speculation for the planning round for next year .

Arno Antlitz: Yeah, Patrick, thanks very much for your questions. For obvious reasons, I don't want to comment on the press speculation for the planning round for next year. Let me put a little bit in perspective what happened. Look, when we talked about the current planning round, we saw the transformation in the industry, supplier margins under pressure, competition in China, and we countered that with a huge program for Volkswagen Zukunft, Audi Zukunft. That was basically part of the planning round last year. We decided on a viable planning round, and since then, two factors have changed. First, the implementation of tariffs, which is a burden of about $5 billion on an annual base of direct tariffs to be paid. We lost some volume due to realignment effects.

Arno Antlitz: Yeah, Patrick, thanks very much for your questions. I mean, for obvious reasons, I don't wanna comment on the press speculation for the planning round for next year, but let me put a little bit in perspective what happened. Look, when we talked about the current planning round, we saw the transformation in the industry of supplier margins under pressure, competition in China. We countered that with a huge program for Volkswagen Zukunft, Audi Zukunft, and that was basically part of the planning round last year. We decided on a viable planning round, and since then, two factors have changed.

Speaker #3: But let me put a little bit in perspective . What happened . Look , when we when we talked about the current planning round , we we saw the transformation in the industry , supplier margins under pressure , competition in China .

Speaker #3: And we countered that with a huge program: Volkswagen Zukunft, Audi Zukunft. And that was basically part of the planning round last year.

Speaker #3: So . And we decided on a viable planning round . And since then , two factors have changed . First , the implementation of tariffs , which is a burden of about 5 billion on an annual basis of direct tariffs to be paid .

Arno Antlitz: First, the implementation of tariffs, which is a burden of about EUR 5 billion on an annual base of direct tariffs to be paid, and we lost some volume due to realignment effect. Since then, the situation in China, specifically in the premium brand, has also changed, which is reflected in the new guidance of Porsche. They had like 15% to 70% guidance. Now they are at 10% to 15%. This we have to factor in into the new planning round, and this is where we stand, and this is what we work against. We work against countermeasures because we are fully committed to come up with a plan that makes the Volkswagen brand even robust. This is where we stand.

Speaker #3: And we lost some volume due to realignment effects . And since then the situation of of in China , specifically in the premium brands , has also changed , which is reflected in the new guidance of Porsche .

Arno Antlitz: Since then, the situation in China, specifically in the premium brands, has also changed, which is reflected in the new guidance of Porsche. They had like 15% to 17% guidance. Now they are at 10% to 15%. We have to factor this into the new planning round, and this is where we stand. This is what we work against, and we work against countermeasures because we are fully committed to come up with a plan that makes the Volkswagen brand even more robust. This is where we stand. In terms of free cash flow next year, obviously, it's too early to give you an indication. We are committed to ramp down the investment. We have an investment spend of $165 billion, and that spend, we always said, is front-loaded.

Speaker #3: They had like 15 to 17% guidance . Now they are at 10 to 15 . And so this we have to factor in into the new planning round .

Speaker #3: And this is where we stand. And this is what we work against. And we work against countermeasures because we are fully committed to come up with a plan that makes the Volkswagen brand even more robust.

Speaker #3: So this is where we stand . And in terms of free cash flow next year , obviously it's too early to give you an indication , but we are committed to ramp down the investment .

Arno Antlitz: In terms of free cash flow, next year, obviously it's too early to give you an indication. We are committed to ramp down the investment. We have a investment spend of EUR 165 million, billion, and that spend we always said it's front loaded. Year-over-year, the investment goes now down in absolute terms, and this should increase the free cash flow and cash conversion rate. This is still intact. I also guided for that the plan is EUR 165, and if we decided on a factory in US for Audi, which we are actually looking for, then we would compensate that within EUR 165. This is even a chance.

Speaker #3: We we have a investment spend of 165 million , billion . And that spent we always said it's front loaded . So year over year the investment goes now down absolute terms .

Arno Antlitz: Year over year, the investment goes now down in absolute terms, and this should increase the free cash flow and cash conversion rate. This is still intact, and I also guided for that. The plan is $165 billion, and if we decided on a factory in the U.S. for Audi, which we are actually looking for, then we would compensate that within $165 billion. This is even a chance. That means on an operative basis, we are further reducing R&D and CapEx and find more synergies in order to compensate for a potential factory in the U.S. This is where we stand, and we have the consensus for next year in sight, and we will give you an indication next year. Brand Group and Brand Group Progressive need a strong fourth quarter. This is clear. Main factors should be product momentum.

Speaker #3: And this should in crease the free cash flow and and cash conversion rate . So this is still intact . And I also guided for that .

Speaker #3: The plan is 165 . And if we decided on an on a factory in US for Audi which we are actually looking for , and then we would compensate that within 165 .

Speaker #3: So this is even a chance . So that means like an operative basis , we are further reducing R&D and CapEx and find more synergies in order to compensate for a potential factory in US .

Arno Antlitz: That means like on operative basis we are further reducing R&D and CapEx and find more synergies in order to compensate for a potential factory in US. This is where we stand and we have the contenders for next year in sight and we will give you an indication next year.

Speaker #3: So this is where we stand . And we have the consensus for next year inside and and we will give you an indication next year .

Speaker #3: So thank .

Speaker #4: You .

[Analyst] (Reuters): Thank you. Yeah.

Speaker #3: And and progressive is yeah . This is a they need a strong fourth quarter . This is clear main factors should be product momentum .

Arno Antlitz: Brand Group Progressive is, they need a strong Q4, this is clear. Main factors should be product momentum. They have the full availability of the Q5, which was not the case so far. They have a new Audi electric vehicles, Q6 e-tron, E6. With these great cars, they should be able to meet their targets for the Q4.

Speaker #3: They have the full availability of the Q5 which was not the case so far . They have a new Audi electric vehicles Q6 E-Tron E6 .

Arno Antlitz: They have the full availability of the Q5, which was not the case so far. They have new Audi electric vehicles, Q6 e-tron, E6. With these great cars, they should be able to meet their targets for the fourth quarter.

Speaker #3: And with these great cars they they should be able to to meet their their targets for the fourth quarter .

Speaker #4: Okay . Thank you very much . Erno .

[Analyst] (Reuters): Okay. Thank you very much, Arno.

[Analyst 1]: Okay, thank you very much, Arno.

Speaker #3: Thank you Patrick . And we continue with Jose Azurmendi from J.P. Morgan . Jose , please go ahead .

Rolf Woller: Thank you, Patrick. We continue with José Asumendi from JPMorgan. José, please go ahead.

Arno Antlitz: Thank you, Patrick. We continue with Jose Asumendi from JPMorgan. Jose, please go ahead.

José Asumendi: Thank you, Rolf. Thank you very much. Morning, Arno. 3 questions. Just very, very quick ones. On tariffs, can you speak about some of the mitigation measures you're taking to offset tariffs in the US or any measures you've taken recently? Second, there is strong free cash generation of Volkswagen, right, underlying, but there are exceptional one-offs. Are there any of these one-offs that we're seeing on Rivian, Chappe, Scout? Do you see any of these one-offs reversing next year when it comes to CapEx? I hear you in your CapEx planning that you have for 2026, but I think 2025 CapEx has been hit and 2024 by exceptional one-offs in terms of CapEx. Do you see some of these elements unwinding next year?

[Analyst 2]: Thank you, Rolf. Thank you very much. Morning, Arno. Three questions, just very, very quick ones. On tariffs, can you speak about some of the mitigation measures you're taking to offset tariffs in the U.S. or any measures you've taken recently? Second, there is strong free cash generation of Volkswagen, right, underlying, but there are exceptional one-offs. Are there any of these one-offs that we're seeing on Rivian, Champagne, Scout? Do you see any of these one-offs reversing next year when it comes to CapEx? I hear you in your CapEx planning that you have for 2026, but I think 2025 CapEx has been hit and 2024 by exceptional one-offs in terms of CapEx. Do you see some of these elements unwinding next year?

Speaker #5: Thank you very much . Morning , Arnold . Three three questions . Just very quick ones on tariffs . Can you speak about some of the mitigation measures you're taking to offset tariffs in the US or any any measures you've taken recently ?

Speaker #5: Second , there is no there is strong free cash generation of false wagon right . Underlying . But there are exceptional one offs .

Speaker #5: Are there any of these one offs that we're seeing on Rivian shopping scout . Do you see any of these one offs reversing next year when it comes to CapEx ?

Speaker #5: I hear you on your CapEx planning that you have for 26 . But but I think 25 CapEx has been hit until the for by exceptional one offs in terms of CapEx , do you see some of these elements unwinding next year ?

Speaker #5: And then three , we'd love to hear about your market share in Europe , where you maintaining a very strong market share despite , I think , strong disruption from Chinese OEMs entering the European market .

[Analyst 2]: Three, we'd love to hear about your market share in Europe, where you're maintaining very strong market share despite, I think, strong disruption from Chinese OEMs entering the European market. How do you think about your market share in the context of all the product launches you have? Thank you.

José Asumendi: Three, would love to hear about your market share in Europe, where you maintaining very strong market share despite, I think, strong disruption from Chinese OEMs entering the European market. How do you think about your market share in the, in the context of all the product launches you have? Thank you.

Speaker #5: How do you think about your market share in the in the context of all the product launches you have ? Thank you .

Speaker #3: Yeah , thanks for these questions . In terms of the tariffs , we I gave you a very broad figure , up to 5 billion on a full year basis .

Arno Antlitz: Yeah. José, thanks for these questions. In terms of tariffs, I gave you a very broad figure up to EUR 5 billion on a full year basis. This includes basically the direct payment we have to do. It also includes some countermeasures in terms of pricing, but it also includes some measures where we lose margin. Why is that the case? Look, an entry level chat on entry level cars from Mexico shipped to the US in a tariff regime of 27.5% is not feasible. If you look at our sales in US or North America in the first nine months, we originally planning to increase the sales, and now you see basically an 8% decrease.

Arno Antlitz: Yeah. Jose, thanks for these questions. In terms of tariffs, I gave you a very broad figure, up to $5 billion on a full-year basis. This includes basically the direct payment we have to do. This includes some countermeasures in terms of pricing, but it also includes some measures where we lose margin. Why is that the case? Look, an entry-level Jetta, an entry-level Taos from Mexico shipped to the U.S. in the tariff regime of 27.5% is not feasible. If you look at our sales in the U.S. or North America in the first nine months, we were originally planning to increase the sales. Now you see basically an 8% decrease. We were planning for a 10% increase. It's always difficult to say what are the reasons, but part of the tariff burden you also see in the, let's call it, lost sales in Europe, in the U.S.

Speaker #3: And and this includes basically the direct payment . We have to do . This includes some countermeasures in terms of pricing . But it also includes some measures where we where we lose margin .

Speaker #3: Why is that the case ? Look in entry level . And entry level tasks from Mexico shipped to the US in a terrorist regime of 27.5% is not feasible .

Speaker #3: So, if you look at our sales in the U.S. or North America, in the first nine months, we were originally planning to increase the sales.

Speaker #3: And now you see basically an 8% decrease . So we were like planning for 10% increase . It's always difficult to say what are the reasons .

Arno Antlitz: we were like planning for a 10% increase. It's always difficult to say what are the reasons. Part of the tariff burden you also see in the let's call it lost sales in Europe, in the US. This adds up to the up to EUR 5 billion. Of course we look into countermeasures as said before. The biggest countermeasure will be we have to compensate for that on the cost side. We also said that we look at more localization specifically on the Audi side in, but this is too early to give you an indication. In terms of CapEx, it's not really one-off.

Speaker #3: But part of the tariff burden you also see in the , in the , in let's call it lost sales in in Europe , in US .

Speaker #3: And this adds up to the , to the up to 5 billion . And of course we we look into countermeasures as I said before , the biggest countermeasure will be they have to compensate for that .

Arno Antlitz: This adds up to the up to $5 billion. Of course, we look into countermeasures, as I said before. The biggest countermeasure will be we have to compensate for that on the cost side. We also said that we look at more localization specifically on the Audi side. This is too early to give you an indication. In terms of CapEx, it's not really one-offs. It's more like a continuous ramp down to the targets we gave you in terms of R&D CapEx combined. We have the effect that we basically, in the year now 2024, 2025, slightly 2026, we have that double investment in terms of keeping our combustion engine cars competitive and a ramp-up of our BEVs. That effect will slightly go down. We gave you a target of 10% for 2027 R&D CapEx combined. We're still in line with that target.

Speaker #3: On the cost side . And we also said that we look at the more localization specifically on on our side in , in .

Speaker #3: But this is too early to give you an indication in terms of CapEx . It's not really one of it's more like a continuous ramp down to the targets we gave you in terms of R&D , CapEx combined , we have the the effect that we we we basically in the year now , 2425 , slightly 26 we have the double investment in terms of keeping our combustion engine cars competitive and ramp up of our PVS and and that effect will likely go down .

Arno Antlitz: It's more like a continuous ramp down to the targets we gave you in terms of R&D CapEx combined, no? We have the effect that we basically in the year now 2024, 2025, slightly 2026, we have the double investment in terms of keeping our combustion engine cars competitive and a ramp up of our BEVs, and that effect will slightly go down. We gave you a target of 10% for 2027 R&D CapEx combined. We're still in line with that target.

Speaker #3: So we gave you a target of 10% . And for 2027 R&D CapEx combined , we're still in in line with that target .

Speaker #3: And when you read in the press or when we communicate that we look into some measures to even improve the combustion engine side stronger with with adding additional models , adding a PVS plug in hybrids , a Hef , for example , for the US , we will compensate that on on the on the ramp up of of electrification .

Arno Antlitz: When you read in the press or when we communicate that we look into some measures to even improve the combustion engine side stronger with adding additional models, adding PVs, plugin hybrids, adding a HEV, for example, for the US, we will compensate that on the ramp up of electrification. To give you one example, we originally had a plan at the very beginning of our journey of EUR 15 billion CapEx for PowerCo over 5 years, we reduced that to 12, then we reduced that to 10, and now we are significantly lower than 10 over the last 5 years because we just react in terms of adding capacity to the ramp up of electrification in the market.

Arno Antlitz: When you read in the press or when we communicate that we look into some measures to even improve the combustion engine side stronger with adding additional models, adding BEVs, plug-in hybrids, adding a HEV, for example, for the U.S., we will compensate that on the ramp-up of electrification. To give you one example, we originally had a plan at the very beginning of our journey of $15 billion CapEx for Power Corp over five years. We reduced that to $12 billion, then we reduced that to $10 billion. Now we are significantly lower than $10 billion over the last five years because we just react in terms of adding capacity to the ramp-up of electrification in the market. This is where we stand, and we absolutely commit to the 10% target for 2027. In terms of market share in Europe, we are very pleased with the current development.

Speaker #3: To give you one example , we originally had a plan at the very beginning of our of our journey of 15 billion CapEx for for power over five years .

Speaker #3: We reduced that to 12 and we reduced that to ten . And now we are significantly lower than ten over the last five years because we just react in terms of adding capacity to the ramp up of electrification in the market .

Speaker #3: So this is where we stand and we absolutely commit the 10% target for 2027 . And in terms of market share in in Europe , we are very pleased with the current development .

Arno Antlitz: This is where we stand, and we absolutely commit the 10% target for 2027. In terms of market share in Europe, we are very pleased with the current development. The EV share goes up, but the market share in ICE holds very nicely. Now we see that, for example, in individual models. We are very pleased with the order intake of ID.7, and still we are pleased with the performance of the Passat. This is where we stand. This is a very good feedback for us and more great models to come. For example, the T-ROC, a very important model for brand Volkswagen and then a new small urban family. Going forward for our financial planning, we don't plan for an increase of market share.

Speaker #3: The we share goes up and the but the market share in is holds very nicely . Now we see that , for example , in individual models , we are very pleased with the order intake of Id7 .

Arno Antlitz: The BEV share goes up, but the market share in ICE holds very nicely. Now we see that, for example, in individual models. We are very pleased with the order intake of ID.7, and still we are pleased with the performance of the Passat. This is where we stand. This is very good feedback for us and more great models to come. For example, the T-Roc, a very important model for Brand Volkswagen, and then the new small urban family. Going forward for our financial planning, we don't plan for an increase of market share. We plan for a stable market in Europe on the current basis, and we plan for a stable market share, perhaps a small increase. That, for me, given the current product substance, is more a chance than a risk.

Speaker #3: And still we are pleased with the performance of the Passat and , and so this is where we stand . So this is a very good feedback for us and more great models to come .

Speaker #3: For example , the T-Roc very important model for Volkswagen . And then the new small urban family . But going forward for our financial planning , we don't plan for an increase of market share .

Speaker #3: We increase , we plan for a for a stable market in Europe on the current basis , and we plan for a stable market share .

Arno Antlitz: We plan for a stable market in Europe on the current basis. We plan for a stable market share, perhaps a small increase. That, for me, gives, given the current product substance, is more a chance than a risk.

Speaker #3: Perhaps a small increase , and that for me gives giving the current product substance is more , more a chance than a risk .

Speaker #3: Thank you Jose . And we continue the line with Hoss Schneider from Bank of America .

Rolf Woller: Thank you, José. We continue the line with Horst Schneider from Bank of America.

Rolf Woller: Thank you, Jose. We continue the line with Horst Schneider from Bank of America.

Speaker #6: Yes . Good morning and thank you for taking my questions . I want to follow up to Patrick's question . I know that you cannot give at this point a guidance for 2026 .

[Analyst 3]: Yes, good morning, and thank you for taking my questions. I want to follow up to Patrick's question. I know that you cannot give at this point a guidance for 2026. I think we all not expect that. When I look also for your EBIT bridge Q3, nine months, what we see is that the EVs continue to dilute the mix. The EV sales increase, that's good. You hold up with this new market entrance, etc. That's great. Nevertheless, they dilute the mix. For me, it's hard to imagine that this gets any better because the number of BEV sales need to improve, of course. Also, pricing, it's constantly a little bit negative. Therefore, if I spin this thought further, it means that this burden will not go away. In that context, can you remind us again of the cost savings that you expect for 2026, 2027?

Horst Schneider: Yes, good morning, and thank you for taking my questions. I want to follow up to Patrick's question. I know that you cannot give at this point a guidance for 2026. I think we all not expect that. When I look also for your EBIT bridge Q3, 9 months, what we see is that the EVs continue to dilute the mix. The EV sales increase, that's good. You hold up versus new market entrants, et cetera. That's great. Nevertheless, they dilute the mix. For me, it's hard to imagine that this gets any better because the number of BEV sales need to improve, of course. Also pricing is constantly a little bit negative. Therefore, if I spin this thought further, it means that this burden will not go away.

Horst Haase: Yes, good morning, and thank you for taking my questions. I want to follow up to Patrick's question. I know that you cannot give at this point a guidance for 2026. I think we all not expect that. When I look also for your EBIT bridge Q3, 9 months, what we see is that the EVs continue to dilute the mix. The EV sales increase, that's good. You hold up versus new market entrants, et cetera. That's great. Nevertheless, they dilute the mix. For me, it's hard to imagine that this gets any better because the number of BEV sales need to improve, of course. Also pricing is constantly a little bit negative. Therefore, if I spin this thought further, it means that this burden will not go away.

Speaker #6: I think we all not expect that . But when I look also for your Ebit bridge Q3 nine months , what we see is that the EVs they continue to dilute the mix .

Speaker #6: The EV sales increase . That's good . You hold up versus a new market entrance , etc. that's great . But nevertheless they dilute the mix .

Speaker #6: For me , it's hard to imagine that this gets any better because the number of sales need to improve . Of course , and then also pricing .

Speaker #6: It's constantly a little bit negative. So therefore, if I spin this thought further, it means that this burden will not go away.

Speaker #6: So in that context , can you remind us again of the cost savings that you expect for 2627 ? Would be good to have this view on a net basis .

Horst Schneider: In that context, can you remind us again of the cost savings that you expect for 2026, 2027? Would be good to have this view on a net basis. Can they compensate basically these negative price mix effects which should persist? In a nutshell, the question is what I asked also at the IAA already, is 2026, maybe even 2027, another year of transition, or is the ambition clearly to increase the earnings already next year? That's number 1. The number 2 is on this Nexperia issue where you also probably do not have great visibility. You say you are covered until next week. Next week is not a long time. I just want to get a feeling if any production cut can be avoided or what needs to happen that the production cut can be avoided.

Horst Haase: In that context, can you remind us again of the cost savings that you expect for 2026, 2027? Would be good to have this view on a net basis. Can they compensate basically these negative price mix effects which should persist? In a nutshell, the question is what I asked also at the IAA already, is 2026, maybe even 2027, another year of transition, or is the ambition clearly to increase the earnings already next year? That's number 1. The number 2 is on this Nexperia issue where you also probably do not have great visibility. You say you are covered until next week. Next week is not a long time. I just want to get a feeling if any production cut can be avoided or what needs to happen that the production cut can be avoided.

[Analyst 3]: Would be good to have this view on a net basis. Can they compensate basically these negative price mix effects which should persist? Therefore, in a nutshell, the question is what I asked also at the IAA already, is 2026, maybe even 2027, another year of transition, or is the ambition clearly to increase the earnings already next year? That's number one. Number two is on this Nexperia issue where you also probably do not have great visibility. You say you are covered until next week. Next week is not a long time. Therefore, I just want to get a feeling if any production cut can be avoided or what needs to happen that the production cut can be avoided. I think it's just up to the politicians that they get this away. What is happening in the background? Any color would be appreciated. Thank you.

Speaker #6: Can they compensate ? Basically , these negative price mix effects which should persist . So therefore , in a nutshell , the question is what I asked also at the I.a.a already is 26 , maybe even 27 .

Speaker #6: Another year of transition . Or is the ambition clearly to increase the earnings already next year ? That's number one . The number two is on this next area issue where you also probably do not have great visibility and you say you are covered until next week .

Speaker #6: Next week is not a long time . So therefore I just want to get a feeling , if any production cut can be avoided or what needs to happen that the production cut can be avoided .

Speaker #6: I think it's just up to the politicians that they get this away . So what is happening in the background ? Any color would be appreciated .

Horst Schneider: I think it's just up to the politicians that they get this away. What is happening in the background? Any color would be appreciated. Thank you.

Horst Haase: I think it's just up to the politicians that they get this away. What is happening in the background? Any color would be appreciated. Thank you.

Speaker #6: Thank you .

Speaker #3: Yeah , thanks very much for your question . As always in the Q3 column , I start answering it with , obviously I can't give you full guidance for 2026 , but I understand where you're coming from .

Arno Antlitz: Yeah, thanks very much for your question. As always, in the Q3 call, I start answering it with, obviously, I can't give you full guidance for 2026, but I understand where you're coming from. Look, if I want to give a little bit of color on the exhibit 11, I deliberately decided to give you basically three margins. The one is the reported margin, 2.3%. The 5.4% margin is like if you take all the out of the one-offs, shows a little bit of our performance and shows also that although all these headwinds, we would have been still in the corridor that we gave you at the beginning of the year. Then we gave you a figure of 4.5%, which is kind of an underlying margin because it includes tariffs, but it excludes the one-offs. If I were you, I would say, look, this is roughly a normalized performance.

Arno Antlitz: Yeah, Horst, thanks very much for your question. As always in the Q3 call, I start answering it with, obviously, I can't give you full guidance for 2026, but I understand where you're coming from. Look, if I want to give a little bit color. On the exhibit 11, I deliberately decided to give you basically three margins. Now, the one is reported margin, 2.3%. The 5.4% margin is like if you take all the out of the one-offs, shows a little bit of our performance and shows also that, although all these headwinds, we are still, would have been still in the corridor that we gave you at the beginning of the year.

Speaker #3: Look , if you if I want to give a little bit color on the exhibit 11 , I deliberately decided to to give you basically three , three margins .

Speaker #3: Now the one is the reported margin , 2.3% . The 5.4% margin is like if you take all the out of the one offs , it shows a little bit of our performance and shows also that although all these headwinds , we are still would have been still in the corridor that we gave you at the beginning of the year , and then we gave you a figure of 4.5% , which is kind of an underlying margin because it includes tariffs , but it excludes the one offs .

Arno Antlitz: We gave you a figure of 4.5%, which is kind of an underlying margin.

Horst Schneider: Mm-hmm.

Horst Haase: Mm-hmm.

Arno Antlitz: Because it includes tariffs, but it excludes the one-offs. If I were you, I would say, Look, this is a roughly a normalized performance. It's a little bit improved because there's only two quarters of tariffs in, not three. Let's assume this is basically the run rate of our current business, including tariffs. This should be the base for like doing like then the math and the calculation for next year. From that 4.5, I wouldn't expect too much from global markets. Europe flat, US perhaps a little bit under pressure. China, very small growth. I talked about the market share, it's really on the cost and on the revenue side. What are headwinds? Yes, we ramp up PVs further.

Speaker #3: So and if I were you , I would say , look , if this is a roughly a normalized performance , it's a little bit improved because there's only two , two quarters of , of tariffs in not three .

Arno Antlitz: It's a little bit improved because there's only two quarters of tariffs in, not three, but let's assume this is basically the run rate of our current business, including tariffs. This should be the base for doing the math and the calculation for next year. From that 4.5%, I wouldn't expect too much from global markets. Europe flat, U.S. perhaps a little bit under pressure, China very small growth. I talked about the market share. It's really on the cost and on the revenue side. What are headwinds? Yes, we ramp up BEVs further. That will be an additional headwind. The headwind will be a little bit less proportionally because the ID.2 family, let's call it, I think we call it new electric urban family, the margins are closer to the combustion engine margins. They will have an LFP battery. They will be built in Spain.

Speaker #3: But let's , let's assume this is basically the run rate of of our current business , including tariffs . So and this is should be the base for like doing like then the math and the , the calculation for for next year .

Speaker #3: And from that 4.5 I wouldn't expect too much from global markets . And Europe fled us perhaps a little bit under pressure . China very small growth .

Speaker #3: I talked about the market share . So it's really on the on the cost and on the revenue side and what , what what I had twins .

Speaker #3: Yes . We ramp up further . So that will be an additional headwind . The headwind will be a little bit less proportionally because the idea two family let's call it , I think we call it new urban new electric urban family .

Arno Antlitz: That will be an additional headwind. The headwind will be a little bit less proportionally because the ID 2 family, let's call it, I think we call it Electric Urban Car Family. The margins are closer to the combustion engine margin. They will have an LFP battery. They will be built in Spain. They will have a more integrated electrical engine. The margin dilution effect continues. For these cars, it's much lower because they have already 80% of the contribution margin of the combustion engine cars. Still margin dilutive. I said it's a little bit then we add one quarter of tariffs. Let's not forget product momentum, and let's not forget the huge momentum we have on our cost program.

Speaker #3: The margins are closer to the combustion engine margins . So they will have an LFP battery . They will be built in Spain .

Speaker #3: They will have a more integrated electrical engine. So, the margin dilution effect continues. But for these cars, it's much lower because they already have 80% of the contribution margin of the combustion engine cars.

Arno Antlitz: They will have a more integrated electrical engine. The margin dilution effect continues, but for these cars, it's much lower because they have already 80% of the contribution margin of the combustion engine cars. Still, margin dilutive. I said it's a little bit, then we add one quarter of tariffs, but let's not forget product momentum. Let's not forget the huge momentum we have on our cost programs. I think you follow us for quite a while. We were able to reduce overhead costs by $1 billion despite inflation. We were able to reduce the workforce by basically 11,000 over the last one and a half years. That continues. This will continue next year. Margin losing effects, performance programs, and then that's some positives and negatives, smaller ones on the P&L.

Speaker #3: But still margin dilutive . I said it's a little bit . Then we add one quarter of of tariffs . But but let's not forget let's not forget the huge momentum we have on our cost programs .

Speaker #3: Now , I think you you follow us for quite a while . And look , we we were able to reduce overhead costs by a billion despite inflation .

Arno Antlitz: Now, I think you follow us for quite a while. Look, we were able to reduce overhead costs by EUR 1 billion despite inflation. We were able to reduce the workforce by basically 11,000 over the last 1.5 years. That continues. This will continue next year. Margin losing effects, performance programs and then that's some positives and negatives, smaller ones on the P&L.

Speaker #3: And we were we were able to reduce . Yeah . The workforce by , by basically 11,000 over the last one and a half years .

Speaker #3: And that continues . So if you this is and this is well continue next year . So margin losing effects . Performance programs and then that's some positives and negatives smaller ones on on on the PNL .

Horst Schneider: Can you just tell us a number how much you want to cut the cost? I mean, these that was announced already, but it's hard to keep the overview. Just repeat that maybe again, what you expect in terms of cost savings for the next 2 years.

Horst Haase: Can you just tell us a number how much you want to cut the cost? I mean, these that was announced already, but it's hard to keep the overview. Just repeat that maybe again, what you expect in terms of cost savings for the next 2 years.

Speaker #6: Can you just tell us a number how much you want to cut the costs? I mean, that was announced already, but it's hard to keep the overview.

[Analyst 3]: Can you just tell us a number, how much you want to cut the costs? I mean, that was announced already, but it's hard to keep the overview. Just repeat that maybe again. What do you expect in terms of cost savings for the next two years?

Speaker #6: Just repeat that . Maybe again , what do you expect in terms of cost savings for the next two years . ?

Speaker #3: 4 billion of the Volkswagen , Volkswagen AG , which includes brand and and and component business . And if you add all the other programs audit Porsche .

Arno Antlitz: EUR 4 billion of the Volkswagen AG, which includes brand and component business. If you add all the other programs, Audi,

Arno Antlitz: €4 billion of the Volkswagen AG, which includes brand and component business. If you add all the other programs, Audi Zukunft, Porsche, it's Carriot, it's then up to €6 billion until 2030.

Horst Schneider: mm-hmm

Horst Haase: mm-hmm

Speaker #3: It's a career . It's then up to 6 billion until 2030 , 2030 .

Arno Antlitz: ... Porsche, it's a period, it's then up to EUR 6 billion until 2030.

Horst Schneider: 2030. All right. Until 2027, no number has been communicated, right?

Horst Haase: 2030. All right. Until 2027, no number has been communicated, right?

[Analyst 3]: 2030. All right. Until 2027, no number has been communicated, right?

Speaker #6: All right . And until 27 , no number has been communicated right ?

Speaker #3: No , but it's look , if you look at the the the major effect comes from , from the wage dampening the wage logic .

Arno Antlitz: No, it's. Look, if you look at the major effect comes from the wage, dampening the wage logic.

Arno Antlitz: No, but it's look, if you look at the major effect comes from the wage, dampening the wage logic. That is €1 billion this year and another €500 million next year continuing. It's basically at the end of 2026, we had €1.5 billion, which should continue. The reduction of workforce, as you see, it's rather linear. 5,000 in 2023, 5,000 in 2024, sorry, 2024, 2025. That should continue more or less linear. The capacity reduction kicks in 2028. This is more like a step down.

Speaker #3: That is a billion this year and another 500 million next year . Continuing . So then it's basically at the end of 26 , we had 1.5 billion , which should continue .

Horst Schneider: Mm-hmm.

Horst Haase: Mm-hmm.

Arno Antlitz: That is EUR 1 billion this year and another EUR 500 million next year continuing. It's basically at the end of 2026, we add EUR 1.5 billion, which should continue.

Horst Schneider: Mm-hmm. Mm-hmm.

Horst Haase: Mm-hmm. Mm-hmm.

Speaker #3: And then and then the , the , the over the . Yeah , the reduction of workforce . It's as you see , it's rather linear .

Arno Antlitz: The reduction of workforce, as you see, it's rather linear. 5,000, 2023, 5,000, 2024. Sorry, 2024, 2025. That should continue more or less linear.

Speaker #3: 5020 , 23 , 5020 , 24 , sorry , 20 2425 . That should continue more or less linear . And the capacity reduction kicks in 2028 .

Horst Schneider: Mm-hmm.

Horst Haase: Mm-hmm.

Arno Antlitz: The capacity reduction kicks in 2028. This is more like a step down.

Speaker #3: So this is more like a step down .

Horst Schneider: Mm-hmm. Mm-hmm. Okay, that's great. Just the Kodiaq would be great if you could answer that as well.

Horst Haase: Mm-hmm. Mm-hmm. Okay, that's great. Just the Kodiaq would be great if you could answer that as well.

Speaker #6: Okay . That's great . Just next period would be great if you could answer that as well .

[Analyst 3]: Okay. That's great. Just Nexperia would be great if you could answer that as well.

Speaker #3: Oh look I perhaps it doesn't feel like if you read the press , but I'm really proud of the team . Working on this team is still by I don't know whether this is the right word in English , but I would say in German , this team is still by the by the experience they made during the chip crisis .

Arno Antlitz: Look, perhaps it doesn't feel like if you read the press, but I'm really proud of the team this is working on. This team is steeled by, I don't know whether this is the right word in English, but I would say in German, this team is steeled by the experience they made during the chip crisis. We have tremendous visibility between us and our suppliers. We know which semiconductors are going to which part, and there's great transparency. They also try to find additional sources, obviously. What we can say, we are safe until the end of next week. I must also be very honest to you, we look at that topic week by week. We try to stabilize week by week. Now we are safe at the end of next week.

Arno Antlitz: Look, Perhaps it doesn't feel like if you read the press, but I'm really proud of the team is working on. This team is steeled by, I don't know whether this is the right word in English, but I would say in German, this team is steeled by the experience they made during the chip crisis. We have tremendous visibility between us and our suppliers. We know which semiconductors are going to which part, and there's a great transparency. They also try to find additional sources, obviously. What we can say, we are safe until end of next week. I must also be very honest to you, we look at that topic week by week. We try to stabilize week by week. Now, we are safe at the end of next week.

Speaker #3: So we tremendous visibility . We between us and our suppliers . We know which semiconductors are going into which part . And there's a great transparency there .

Speaker #3: Also try to find additional sources . Obviously , and what we can say we are safe until the end of next week . But I must also be very honest with you .

Speaker #3: We look at that topic week by week . We try to stabilize week by week . Now we are safe at the end of next week .

Speaker #3: And as you said before , the solution should be on the political side because it's not like a technical shortfall or a capacity shortfall .

Arno Antlitz: As you said before, the solution should be on the political side because it's not like a technical shortfall or a capacity shortfall. It's really induced by obviously political discussions. This is where we hope that all the relevant parties sit together and find solutions.

Arno Antlitz: As you said before, the solution should be on the political side because it's not like a technical shortfall or a capacity shortfall. It's really induced by, obviously, political discussions. This is where we hope that all the relevant parties sit together and find solutions.

Speaker #3: It's really induced by by obviously political discussions . And this is where we hope that all the relevant parties sit together and find solutions .

Speaker #6: These political discussions is that Europe or US , it has to be done by the US or by Europe . Is your feeling ?

Horst Schneider: This political discussion, is that Europe or US? It has to be done by the US or by Europe, is your feeling?

Horst Haase: This political discussion, is that Europe or US? It has to be done by the US or by Europe, is your feeling?

[Analyst 3]: These political discussions, is that Europe or U.S.? It has to be done by the U.S. or by Europe, is your feeling?

Arno Antlitz: Horst, I don't want to speculate. I'm not sure whether I have the answer than you.

Speaker #3: I don't want to speculate . I'm not sure whether . Okay . All right . That's fine . Absolutely fine .

Arno Antlitz: Horst, I don't want to speculate. I'm not sure whether I have the answer than you.

Arno Antlitz: I don't want to speculate. I'm not sure where the.

Horst Schneider: Okay. All right. That's fine. Absolutely fine. Thank you so much.

Horst Haase: Okay. All right. That's fine. Absolutely fine. Thank you so much.

[Analyst 3]: Okay. All right. That's fine.

Speaker #7: Thank you so much .

Arno Antlitz: Absolutely fine.

[Analyst 3]: Thank you so much.

Speaker #3: What I can say is what we are doing , and I would say the transparency we have now per car , per , per , per piece is , is way better than we had when we started the chip crisis .

Arno Antlitz: What I can say is what we are doing, and I would say the transparency we have now per car, per piece, is way better than we had when we started the chip crisis.

Arno Antlitz: What I can say is what we are doing, and I will say the transparency we have now per car, per piece, is way better than we had when we started the chip crisis.

Speaker #6: Okay . That's great .

Horst Schneider: Okay. That's great, Arno. Thank you.

Horst Haase: Okay. That's great, Arno. Thank you.

[Analyst 3]: Okay. That's great, Arno. Thank you.

Speaker #7: Thank you .

Speaker #3: Thank you . Host thank you . Host . And we move over to Tim Tim from Deutsche Bank . Please go ahead .

Arno Antlitz: Thank you, Horst.

Rolf Woller: Thank you, Horst. We move over to Tim. Tim from Deutsche Bank, please go ahead.

Rolf Woller: Thank you, Horst. We move over to Tim. Tim from Deutsche Bank. Please go ahead.

Speaker #8: Thank you . I know the fight for better free cash flow generation and conversion has kind of been one of your biggest professional fights as a CFO at VW over the last few years .

Tim Rokossa: Thank you, Rolf and Arno. Arno, the fight for better free cash flow generation and conversion has kind of been one of your biggest professional fights as a CFO at VW over the last few years. We know that VW only changes under tremendous pressure, usually really for the better. We've seen this multiple times with the restructuring, diesel scandal and so on and so forth. Do you feel like your colleague understand now a little bit better why you pick up that fight and why you want to drive free cash flow generation now that we see that Porsche is not generating as much anymore, and it's also probably messing on all sorts of other items? Or do you still feel it's as difficult as it was?

[Analyst 4]: Thank you, Rolf and Arno. Arno, the fight for better free cash flow generation and conversion has kind of been one of your biggest professional fights as a CFO at Volkswagen Group over the last few years. We know that Volkswagen Group only changes under tremendous pressure, usually really for the better. We've seen this multiple times with the restructuring, diesel scandal, and so on and so forth. Do you feel like your colleagues understand now a little bit better why you pick up that fight and why you want to drive free cash flow generation now that we see that Porsche is not generating as much anymore and it's also probably missing on all sorts of other items? Do you still feel it's as difficult as it was?

Speaker #8: And we know that VW only changes under tremendous pressure . Usually really for the better . We've seen this multiple times with restructuring , diesel scandal and so on and so forth .

Speaker #8: Do you feel like your colleague understand now a little bit better ? Why you pick up that fight and why you want to drive free cash flow generation ?

Speaker #8: Now that we see that Porsche is not generating as much anymore , and it's also problematic on all sorts of other items . Or do you still feel it's as difficult as it was ?

Speaker #8: And I understand you don't want to give us a number , but if I give you a number and say , hey , let's say you generate a little bit of free cash flow this year , actually , because there's a lot of CapEx that you now have to spend in Q4 , really .

Tim Rokossa: I understand you don't want to give us a number, but if I give you a number and say, "Hey, let's say you generate a little bit of free cash flow this year, actually, because there's a lot of CapEx that you now have to spend in Q4, really. Then you sell Everllence SE. That would be counted as free cash flow as well. We suddenly talk about EUR 5 to 7 billion positive next year and not the EUR 7 billion negative media speculation, right? What would you say to that? Secondly, when we think about restructuring and improvements of the business, we see the result already within VW Brand and Brand Group Core. Is this implied strong result of Audi in Q4 also partly a result of the ongoing restructuring efforts already, or is that still to come next year as a support? Thank you.

[Analyst 4]: I understand you don't want to give us a number, but if I give you a number and say, "Hey, let's say you generate a little bit of free cash flow this year, actually, because there's a lot of CapEx that you now have to spend in Q4, really." If you sell Evelance, that would be counted as free cash flow as well. We suddenly talk about $5 to $7 billion positive next year and not the $7 billion negative media speculation, right? What would you say to that? Secondly, when we think about restructuring and improvements of the business, we see the result already within Volkswagen Passenger Cars brand and core group. Is this implied strong result of Audi in Q4 also partly a result of the ongoing restructuring efforts already, or is that still to come next year as a support? Thank you.

Speaker #8: And then you sell Everlance . That would be counted as free cash flow as well . We suddenly talk about 5 to 7 billion positive next year .

Speaker #8: And not the 7 billion negative media speculation . Right . So what would you say to that ? And then secondly , when we think about restructuring and improvements of the business , we see the result already within VW brand and core group .

Speaker #8: Is this implied strong result of Audi in Q4 ? Also partly a result of the ongoing restructuring efforts already ? Or is that still to come next year ?

Speaker #8: As a support ? Thank you .

Arno Antlitz: Yeah, Tim. First and foremost, I think we had the opportunity to meet the whole, not the whole board, but yeah, we had a presentation on the ER. I think you realize that we really act as a team, and we find really good answers. I think everybody knows where we stand. Again, look, as I said before, the speculation in the press, you have to see where we stand. Now, we had a planning round, we agreed on a viable planning round, and now all of a sudden, there's an additional headwind of EUR 5 billion tariffs, an additional headwind of China, and we are committed to compensate for that as well.

Speaker #3: Yeah . Tim , first and foremost , I think you had the opportunity to meet the the whole not the whole board , but we had a presentation on the air and I think you you realize that we really act as a team and , and we find really good answers .

Arno Antlitz: Yeah, Tim. First and foremost, I think we had the opportunity to meet the whole, not the whole board, but we had this presentation on the, and I think you realize that we really act as a team, and we find really good answers. I think everybody knows where we stand. Again, look, as I said before, the speculation in the press, you have to see where we stand. We had a planning round. We agreed on a viable planning round, and now all of a sudden, there's an additional headwind of $5 billion tariffs, an additional headwind of China, and we are committed to compensate for that as well. We look at measures, and I said it even in an interview this morning. We had program brand by brand, and these programs are really focusing not only on EBIT, but also on cash flow.

Speaker #3: I think everybody knows where we stand . And , and again , look , as I said before , the speculation in the press , you have to see where we stand now .

Speaker #3: We had a planning round. We agreed on a viable planning round, and now all of a sudden there's an additional headwind of $5 billion in tariffs and an additional headwind from China.

Speaker #3: And we are committed to compensate for that as well. We are looking at measures, and I said it even in an interview this morning. We had a program brand by brand, and these programs are really focusing not only on the product but also on cash flow.

Arno Antlitz: We look at measures, and I said it even in the interview this morning, there is, we had program brand by brand, and these programs are really focusing not only on EBIT, but also on cash flow. The teams work much closer together in terms of production sales. If you look at our working capital of our inventory is much stronger than in the past in terms of percentage of sales. There's a second level, I would say. It's the field we also talk long about its group synergies. This is what I specifically highlighted.

Speaker #3: The , the teams work much closer together in terms of production sales . If you look at our working capital of our inventories , much stronger than in the past in terms of percentage of sales .

Arno Antlitz: The teams work much closer together in terms of production, sales. If you look at our working capital of our inventories, much stronger than in the past in terms of % of sales. There's a second level, I would say. It's the field we also talk long about. It's group synergies. This is what I specifically highlighted. Now we have real programs brand by brand, and the next level where we could compensate and do even better and make more out of the current cash flow and R&D is even more group synergies, both in CapEx and R&D, on software, on combining brands, production to brands. I'll make one example. The ID.2 family, all the cars from the same platform, from different brands, should be in the future on one line or even one factory. This gives us the positive.

Speaker #3: And but there's a second level , I would say it's the field . We also talk long about . It's group . Group synergies .

Speaker #3: And this is what I specifically highlighted . Now we have a real programs brand by brand . And the next level where we could compensate and do even better and make more out of the current cash flow .

Arno Antlitz: Now we have real programs brand by brand. The next level where we could compensate and do even better and make more out of the current cash flow and R&D is even more group synergies, both in CapEx and R&D on software, on combining brands that production to brands. I make one example, the ID.2 family, no? All the cars from the same platform from different brands should be in future and on one line or even or one factory. This gives us the positive. As I said before, Tim, it's really I cannot give you free cash flow guidance today because we are not done so far, that would be not professional if I give you guidance, although we are not done.

Speaker #3: And R&D is even more about group synergies, both in CapEx and in R&D on software, on combining brands that production to brands and make one example, the ID.2 family.

Speaker #3: Well , all the cars from the same platform from different brands should be in future on one line or even or one factory .

Speaker #3: So this gives us the positive . As I said before , Tim , it's I , really I cannot give you a free cash flow guidance today because we are not done so far and that would be not professional .

Arno Antlitz: As I said before, Tim, I cannot give you a free cash flow guidance today because we are not done so far, and that would be not professional if I give you guidance. Although we are not done, I said we have the consensus for next year in sight on cash flow. Perhaps we should leave it like that, and we know what we need to deliver as a group in order to be able to pay dividends and interest rates to shareholders. This is where we stand. This is what we work on, and we are fully committed as a team. Hopefully, you have an understanding that I cannot be more specific right now. Then Audi, let's not forget Audi restructured already. They closed down the Brussels plant. They agreed on Audi Zukunft, and they will reduce the headcount by 7,000.

Speaker #3: If I give you guidance . Although we are not done , I said we have the consensus for next year in sight on cash flow .

Arno Antlitz: I said we have the consensus for next year insight on cash flow. Perhaps we should leave it like that, and we know what we need to deliver as a group in order to be able to pay dividends and interest rate to shareholders. This is where we stand, this is where what we work on, and we are fully committed as a team. Hopefully, you have understanding that I cannot be more specific right now. Then Audi. Let's not forget Audi restructured already. They closed down the Brussels plant. They agreed on Audi Zukunft, and they will reduce the headcount by 7,000.

Speaker #3: Perhaps we should leave it like this, and we know what we need to deliver as a group in order to be able to pay dividends and interest rates to shareholders.

Speaker #3: So this is where we stand . This is where what we work on . And we are fully committed as a team . And yeah , hopefully you have understanding that I cannot be more specific right now .

Speaker #3: And yeah . And then Audi , let's not forget Audi restructured already . They closed down the Brussels plant . They agreed on Audi Zukunft and and they will reduce the headcount by 7000 .

Arno Antlitz: New products are coming. The continuous effect on the closure of the Brussels plant also comes in obviously then in Q4 and next year. Yes, part of the improved figures in Q4 and going on for next year, Audi is also from their restructuring.

Speaker #3: New new products are coming and the , the continuous effect on the closure of the Brussels plant also comes in obviously . Then in the fourth quarter and next year .

Arno Antlitz: New products are coming, and the continuous effect on the closure of the Brussels plant also comes in, obviously, then in the fourth quarter and next year. Yes, part of the improved figures in Q4 and going on for next year already is also from their restructuring.

Speaker #3: Yeah . So , so yes , part of the , the improved figures in Q4 and going on for next year already is also from the restructuring .

Speaker #8: Thank you , Anna . Looking forward to the free cash flow guide . Then early next year .

Tim Rokossa: Thank you, Arno. Looking forward to the free cash flow guide then early next year.

[Analyst 4]: Thank you, Arno. Looking forward to the free cash flow guide early next year.

Speaker #3: Thank you Tim . The next one in line would be Mike Tindall from HSBC . And difficult to ask now an additional question on 2026 and the free cash flow .

Arno Antlitz: Thank you, Tim. The next one in line would be Mike Tyndall from HSBC. Difficult to ask now an additional question on 2026 and the free cash flow. Mike, please go ahead.

Rolf Woller: Thank you, Tim. The next one in line would be Mike Tindall from HSBC. Difficult to ask now an additional question on 2026 and the free cash flow, but Mike, please go ahead.

Speaker #3: But Mike , please go ahead .

Speaker #9: Thanks , Rolf . Just a couple for me , I guess , given we're talking about cash flow , I'm not going to ask about 26 .

[Analyst 5]: Thanks, Rolf. Just a couple for me. I guess given we're talking about cash flow, I'm not going to ask about 2026, but I wonder if you've got any thoughts around the dividend. You know, we've seen a lot of one-offs this year. Some of them will be included. Some of them won't. Cash flow effectively on the guide is neutral. Any thoughts you could offer in terms of dividend would be super helpful. The second one, you know, on the tariff piece, it feels like we've seen movement on most regions with the exception of Mexico. I just wonder if you can talk about what are you seeing and hearing on what might be happening on Mexico. While I'm at it, you know, there was some discussion about potentially getting credit for investment. You talked about potential Audi factory in the U.S. Is that conversation ongoing?

Michael Tyndall: Thanks, Rolf. Just a couple for me. Given we're talking about cash flow, I'm not gonna ask about 26, I wonder if you've got any thoughts around the dividend. You know, we've seen a lot of one-offs this year. Some of them will be included, some of them won't. Cash flow effectively on the guide is neutral. Any thoughts you could offer in terms of dividend would be super helpful. The second one, you know, on the tariff piece, it feels like we've seen movement on most regions with the exception of Mexico. I wonder if you can talk about what are you seeing and hearing on what might be happening on Mexico. While I'm at it, you know, there was some discussion about potentially getting credit for investment.

Michael Tyndall ): Thanks, Rolf. Just a couple for me. Given we're talking about cash flow, I'm not gonna ask about 26, I wonder if you've got any thoughts around the dividend. You know, we've seen a lot of one-offs this year. Some of them will be included, some of them won't. Cash flow effectively on the guide is neutral. Any thoughts you could offer in terms of dividend would be super helpful. The second one, you know, on the tariff piece, it feels like we've seen movement on most regions with the exception of Mexico. I wonder if you can talk about what are you seeing and hearing on what might be happening on Mexico. While I'm at it, you know, there was some discussion about potentially getting credit for investment.

Speaker #9: But I wonder if you've got any thoughts around the dividend . You know , we've seen a lot of one offs this year .

Speaker #9: Some of them will be included , some of them won't . Cash flow effectively on the guide is neutral . Any thoughts you could offer in terms of dividend would be super helpful .

Speaker #9: And then the second one on the tariff piece , it feels like we've seen movement on most regions , with the exception of Mexico .

Speaker #9: And I just wonder if you can talk about what are you seeing and hearing on what might be happening on Mexico . And while I'm at it , you know , there was some discussion about potentially getting credit for for investment .

Speaker #9: You talked about potential Audi factory in the US . Is that conversation ongoing ? I just wonder if you could give us a bit more feel for it's 5 billion , but is there a potential downside opportunity on that ?

Michael Tyndall: You talked about potential Audi factory in the US. Is that conversation ongoing? I just wonder if you could give us a bit more feel for it's EUR 5 billion, but is there a potential downside opportunity on that tariff number? Thanks.

Michael Tyndall ): You talked about potential Audi factory in the US. Is that conversation ongoing? I just wonder if you could give us a bit more feel for it's EUR 5 billion, but is there a potential downside opportunity on that tariff number? Thanks.

[Analyst 5]: I just wonder if you could give us a bit more feel for it's $5 billion, but is there a potential downside opportunity on that tariff number? Thanks.

Speaker #9: That tariff number ? Thanks .

Speaker #3: Yeah . Mike , thanks for your questions on the dividends . I think we I can give you two , two indications . First and foremost , I said we stick to the 30% payout ratio of at least 30% payout ratio .

Arno Antlitz: Yeah, Mike, thanks for your question. On the dividends, I think I can give you two indications. First and foremost, I said we stick to the 30% payout ratio, at least 30% payout ratio. What we also communicated when we laid out the talk is that we won't take the non-cash impairment charge of the Porsche goodwill in the magnitude of €2.7 billion as a basis when calculating the basis for the dividend for 2025, which we propose. This is what I can give you on the dividend, which would help you to determine where we could stand on that.

Arno Antlitz: Mike, thanks for your question. On the dividend, I think I can give you two indication. First and foremost, I said, we stick to the 30% payout ratio of at least 30% payout ratio. What we also communicated that when we laid out the ATOC, that we won't the non-cash impairment charge of the Porsche goodwill in the magnitude of EUR 2.7 billion, we won't take as a basis when calculating the basis for the dividend for 2025 which we propose. This is what I can give you on a dividend. Which would help you to determine where we could stand on that.

Speaker #3: And what we also communicated that when we laid out the the talk that we won't the non-cash impairment charge of the Porsche goodwill in the magnitude of 2.7 billion , we won't take as a basis when calculating the basis for for for for the dividend for the 2025 which , which we propose no .

Speaker #3: And and this is what what I , what I can can give you on , on a dividend which , which would help you to to determine a where we could stand on , on on that if you take if I could .

Arno Antlitz: If you take your.

[Analyst 5]: If I can just come back just one second on that, which is I just wonder with the planning round going on and the emphasis on, you know, generating free cash flow, how does that conflict potentially with paying money out?

Michael Tyndall: If I could...

Michael Tyndall ): If I could...

Arno Antlitz: Mm-hmm.

Speaker #9: Can I just come back just one second on that which is I just wonder with the planning around going on and the emphasis on , you know , generating free cash flow , how does that conflict potentially with paying money out ?

Michael Tyndall: Can I just come back just one second on that? I just wonder with the planning round going on and the emphasis on, you know, generating free cash flow, you know, how does that conflict potentially with paying money out?

Michael Tyndall ): Can I just come back just one second on that? I just wonder with the planning round going on and the emphasis on, you know, generating free cash flow, you know, how does that conflict potentially with paying money out?

Speaker #3: But , I mean , what what look , what I said before , it's not conflicting . It's actually the other way around .

Arno Antlitz: What I said before, it's not conflicting. It's actually the other way around. We have to come up with a planning round that is robust for the Volkswagen Group going forward. Robust means also being able to pay the dividends we promised to the capital market, to our shareholders. This is where we stand. It's not conflicting, it's actually the other way around. This is part of the robustness.

Arno Antlitz: I mean, look, what I said before, it's not conflicting. It's actually the other way around. We have to come up with a planning round that is robust for the Volkswagen Group going forward. Robust means also being able to pay the dividends we promised to the capital market to our shareholders. This is where it stands. It's not conflicting. It's actually the other way around. This is part of the robustness. We have a net liquidity of more than $30 billion. We are committed on cash flow generation. The cash conversion rate should go up. It's not conflicting. It's actually the other way around. It's part of the, when I describe robustness, it's part of the ability to also let our shareholders participate in the success of the Volkswagen Group. Tariffs, yeah. Look, the $5 billion, I said up to $5 billion.

Speaker #3: We have to come up with a plan around that. It is robust for the Volkswagen Group going forward, and robust means also being able to pay the dividends.

Speaker #3: We we promised to the capital market to our shareholders . This is where I stand . So it's not conflicting . It's actually the other way around .

Speaker #3: This is part of the robustness and and and we have a net net liquidity on more than 30 billion . We are committed on cash flow generation .

Michael Tyndall: Got it.

Michael Tyndall ): Got it.

Arno Antlitz: We have a net liquidity on more than EUR 30 billion. We are committed on cash flow generation. The cash conversion rate should go up. It's not conflicting. It's actually the other way around. It's part of the, when I describe robustness, it's part of the ability to also let our shareholders participate of the success of the Volkswagen Group. Tariffs, yeah. Look, the EUR 5 billion, as at up to EUR 5 billion. It's very roughly, don't cite me, but very roughly, it's about EUR 4 billion, EUR 4 point something billion we have to pay from the current basis on the regimes we see between 4 and 4.5 payout.

Speaker #3: The cash conversion rate should go up . So it's not conflicting . It's actually the other way round . It's part of the when I describe robustness , it's part of the ability to also let our shareholders participate of the success of the Volkswagen Group .

Speaker #3: And tariffs . Yeah they look the 5 billion as add up to 5 billion . Let's very roughly and but don't don't excite me .

Arno Antlitz: Let's very roughly, and don't cite me, but very roughly, it's about $4 billion, $4 point something billion we have to pay from the current basis on the regimes we see, between $4 and $4.5 billion payout. The rest of the $5 billion is basically, I would say, lost margin due to some measures we took in order to mitigate the effect. There are two levers to optimize the $5 billion. First and foremost, additional measures like pricing and others, obviously. On the other hand, there are some talks about, look, from Mexico to the U.S., you have 27.5%. There are some ideas, I think, to exclude some of the parts that go from Mexico to the U.S., which would obviously bring down the up to $5 billion to a smaller number. In terms of the factory, we don't have new information.

Speaker #3: But very roughly it's about 44,000,000,004 point something billion . We have to pay from from the current basis on the on on the regimes we see between 4 and 4.5 payout and the rest of the 5 billion is , is basically , I would say , lost margin due to some , some measures .

Arno Antlitz: The rest of the EUR 5 billion is basically, I would say, lost margin due to some measures we took in order to mitigate the effect. There are two levers to optimize the EUR 5 billion. First and foremost, additional measures like pricing and others, obviously. On the other hand, there are some talks about look from Mexico to the US, you have 27.5%. There are some ideas, I think, to exclude some of the parts that go from Mexico to US, which would obviously bring down the up to EUR 5 billion to a smaller number. In terms of the factory, if we don't have new information, we are still in discussions with the administration in US.

Speaker #3: We we took in order to mitigate the , the effect . So there are there are two levers to , to to optimize the 5 billion .

Speaker #3: First and foremost additional measures like pricing and others . Obviously . And on the other hand , there there are some talks about look from from from Mexico to us , you have 27.5% .

Speaker #3: So there are some ideas , I think , to exclude some of the parts that go from Mexico to us , which would obviously bring down the , the up to 5 billion to , to a smaller number in terms of the factory , we don't have new information .

Speaker #3: We are still in discussions with the administration in the U.S. We are still looking into the topic. We are calculating. But I cannot share new information on the topic of a potential industrialization and localization.

Arno Antlitz: We are still in discussions with the administration in the U.S. We still look into the topic. We calculate, but I cannot share new information on the topic of a potential industrialization and localization, let's call it that way, of the Audi brand in the U.S. We don't have new information, which I can share.

Arno Antlitz: We still look into the topic, we calculate. I cannot share new information on the topic of a potential, industrialization and localization, let's call it that way, of the Audi brand in the US. We don't have a new information which I can share.

Speaker #3: Let's call it that way. Of the Audi brand in the U.S., we don't have any new information that I can share.

Speaker #9: Thank you very much . Appreciate it .

Sebastian Ash: Thank you very much. Appreciate it.

[Analyst 4]: Thank you very much. Appreciate it.

Speaker #3: Thank you . Mike . And the next question comes from Sam . Sam Perry from Exxon . Please go ahead .

Arno Antlitz: Thank you, Mike Tindall. The next question comes from Sam Perry from Exane. Please go ahead.

Rolf Woller: Thank you, Mike. The next question comes from Sam Perry from Barclays. Please go ahead.

Speaker #10: Hi . Thanks for taking my questions . There was a few media stories in the quarter around issues with Rivian software rollout and sort of moving to be a coordinator of these technologies .

Thomas Besson: Hi there. Thanks for taking my questions. There's a few media stories in the quarter around issues with the Rivian software rollout and CARIAD sort of moving to be a coordinator of these technologies. Can you give any color on exactly what's going on here and whether or not that could result in any one-off charges going into next year? With regards to Porsche's change in strategy back to ICE, given the shared platforms with Audi, and the EUR 300 million impairment that Audi took, does that have any implications for Audi's future model rollout or investment requirements that you could share? Thanks.

[Analyst 2]: Hi there. Thanks for taking my questions. There are a few media stories in the quarter around issues with the Rivian software rollout and Carrier sort of moving to be a coordinator of these technologies. Can you give any color on exactly what's going on here and whether or not that could result in any one-off charges going into next year? With regards to Porsche's change in strategy back to ICE and given the shared platforms with Audi and the $300 million impairment that Audi took, does that have any implications for Audi's future model rollout or investment requirements that you could share? Thanks.

Speaker #10: Can you provide any insight on exactly what's going on here and whether that could result in any one-off charges going into next year?

Speaker #10: And then with regards to Porsche's change in strategy , back to Ice . And given the shared platforms with Aldi and the 300 million impairment that Audi took , does that have any implications for Audi's future model rollout or investment requirements that you could share ?

Speaker #10: Thanks .

Speaker #3: It was difficult to understand . I , I , I heard about the Rivian software , so what what I can say the the the relevant software , which we developed together in the , in the JV for the electric vehicles is on plan .

Arno Antlitz: Sam, it was difficult to understand. I heard about the Rivian software. What I can say, the Rivian software which we developed together in the JV for the electric vehicles is on plan. We look into the next milestone, which would be the winter test for the Mole. It's even the other way around. When you remember back then, we agreed on the software. We set up a certain model range of the first step of cars or the first tranche of cars that will get the software. For example, the electrical SUV from Audi, for example, Scout and others. We even included in the course of the joint venture the ID.1.

Arno Antlitz: It was difficult to understand. I heard about the Rivian software. What I can say, the Rivian software, which we developed together in the JV for the electric vehicles, is on plan. We look into the next milestone, which would be the winter test for the model. It's even the other way around. When you remember back then, we agreed on the software. We set up a certain model range of the first step of cars or the first tranche of cars that will get the software. For example, electric SUV from Audi, for example, Scout and others. We even included in the course of the joint venture the ID.1. The ID.1 will be an additional model that will get the Rivian JV-based software in the MEB. This doesn't feel like delayed.

Speaker #3: We look into the next milestone , which would be the winter test for for the mule and it's even the other way when you when you remember back then we agreed on the software .

Speaker #3: We we set up a certain model range of the first step of cars or the first tranche of cars that will get the software , for example , electric SUV from Audi , for example , Scout and and others .

Speaker #3: And we even included in the course of the joint venture , the Id1 . So the Id1 will be in additional model that will get the Rivian JV based software in the in the in the amoeba .

Arno Antlitz: The ID.1 will be an additional model that will get the Rivian JV based software in the MEB. This doesn't feel like delayed. It's even like we increased basically the speed in terms of we added a different model, which is also very good news for the ID.1 because it's a very capable and per car cost-effective software. This is where we stand at the Rivian software.

Speaker #3: So this is this doesn't feel like delayed . It's even like it's we increased basically the speed in terms of we added a different model which is also a very good news for the .

Arno Antlitz: It's even like we increased basically the speed in terms of we added a different model, which is also very good news for the ID.1 because it's a very capable and per-car cost-effective software. This is where we stand at the Rivian.

Speaker #3: Id1 because it's a very capable and per car cost effective software . This is this is where we stand at Rivian . Yeah .

Speaker #10: Thanks . I don't know if my second question was heard , but just on Porsche's changing strategy back to ice , the implications for Audi .

Thomas Besson: Okay.

Arno Antlitz: Yeah.

Thomas Besson: Thanks. I don't know if my second question was heard, but just on Porsche's changing strategy back to ICE-

[Analyst 4]: Okay. Thanks. I don't know if my second question was heard, just on Porsche's change in strategy back to ICE, the implications for Audi.

Arno Antlitz: Yeah.

Thomas Besson: the implications for Audi.

Speaker #3: Look , what I would propose . I think Audi has their call next week . Ralf on next Monday . Yes , there are some implications , but but minor ones in terms of financial impact , I think they had a burden of 200 , 200 million .

Arno Antlitz: Look, what I would propose, I think Audi has their call next week, Rolf, on next Monday. Yes, there are some implications, but minor ones in terms of financial impact. I think they had a burden of EUR 200 million. I would really propose that next week's call is I think on Monday. Here you can discuss in detail the Audi products strategy with Jürgen Rittersberger.

Arno Antlitz: Look, what I would propose, I think Audi has their call next week, Rolf, on next Monday. Yes, there are some implications, but minor ones in terms of financial impact. I think they had a burden of $200 million. I would really propose that next week's call is, I think, on Monday. Here you can discuss in detail the Audi products that achieve this with Jürgen Rüdesberger.

Speaker #3: But I would really propose that next , next week's call is , I think on Monday . And and so here you can discuss in detail the Audi product strategy with , with Jürgen .

Speaker #10: Thanks .

Speaker #3: Is that okay for you ?

[Analyst 4]: Thanks.

Thomas Besson: Thanks.

Arno Antlitz: If that's okay for you.

Speaker #10: Thank you .

Thomas Besson: Thank you.

[Analyst 4]: Thank you.

Speaker #3: Thanks . And the next question comes from Michael Punset from dzi Bank . Michael , please go ahead .

Arno Antlitz: Thanks. The next question comes from Michael Punzet from DZ Bank. Michael, please go ahead.

Arno Antlitz: Thanks.

Rolf Woller: The next question comes from Michael Punset from DZ Bank. Michael, please go ahead.

Speaker #11: Yes , Michael . Good morning . I have two questions . First one is can you explain a bit more detail what's happened with your other financial result ?

[Analyst 4]: Yes, Michael Punset. Good morning. I have two questions. First one is, can you explain a bit in more detail what's happened this year as a financial result because we saw a huge swing year over year in Q3? The second one is, can you give us any kind of guidance what we should expect on special items or restructuring charges and so on in Q4, please? Thanks.

Michael Punzet: Yes. Michael Punzet. Good morning. I have 2 questions. First one is, can you explain a bit more detail what's happened with your other financial result because we saw a huge swing year-over-year in Q3? Second one is, can you give us any kind of guidance what we should expect on special items or restructuring charges and so on in Q4, please? Thanks.

Speaker #11: Because we saw a huge swing year over year in Q3. And the second one is, can you give us any kind of guidance on what we should expect regarding special items or restructuring charges and so on?

Speaker #11: In Q4, please. Thanks.

Speaker #3: Yeah . On the on the other financial result , there were some basically new evaluations of of , for example , convertibles . We have and and for example .

Arno Antlitz: On the other financial result, there were some basically new evaluations of, for example, convertibles we have, and, for example, other participations, which are positive. For the fourth quarter, we don't expect major one-offs. The restructuring is going on. There's, I think, a double-digit million up to a small three-digit million more restructuring to expect from the Brand Group Corp, but not major ones. What I would like to remind you in terms of restructuring, just for the understanding, the major effect of restructuring of our program at Volkswagen Zukunft is the so-called Altersteilzeit, that early retirement program. The accruals for that early retirement program, we do contract by contract and person by person. That flows in over the course of the year. Just to give you an understanding, it's a magnitude of $400 million a year.

Arno Antlitz: On the other financial results, there were some basically new evaluations of, for example, convertibles we have, and for example, and other participations, which the positive. For Q4, we don't expect major one-off. The restructuring is going on. There's I think a double digit million up to a small three digit million more restructuring to expect from Brand Group Core, but not major one. What I would like to remind you in terms of restructuring, just for the understanding, the major effect of restructuring of our program at Volkswagen Zukunft is the so-called Altersteilzeit, early retirement program.

Speaker #3: Yeah . And other participations , which the positive and for the for the fourth quarter , we don't expect major one offs . The restructuring is going on .

Speaker #3: There's I think a double digit million up to a small three digit million more restructuring to expect from from brand group core . But not not major ones .

Speaker #3: What I would like to remind you in terms of restructuring , just for the understanding the major effect of restructuring of our program at Volkswagen Zukunft is the so-called other early retirement program .

Speaker #3: And these these the the accruals for that retirement program , we do contract by contract and person by person . So that flows in over the course of the year .

Arno Antlitz: These accruals for that early retirement program, we do contract by contract and person by person. That flows in over the course of the year. Just to give you an understanding, it's a magnitude of EUR 400 million a year. This EUR 400 million is factored in our outlook and is factored in the bridge. The true performance of our Volkswagen brand and Brand Group Core performance would even be better if you deduct that EUR 400 million per year as well, which we don't do.

Speaker #3: And just to give you an understanding, it's a magnitude of $400 million a year. These $400 million are factored into our outlook and are included in the bridge.

Arno Antlitz: This $400 million is factored in our outlook and is factored in the bridge. The true performance of our Volkswagen brand and Brand Group Corp performance would even be better if you deduct that $400 million per year as well, which we don't do.

Speaker #3: But the the true performance of of our of our brand and brand group core performance would even be better if you if you deduct that 400 million per year as well , which we don't do .

Speaker #11: Okay .

Speaker #12: Thank .

Speaker #11: You .

[Analyst] (Reuters): Okay. Thank you.

[Analyst 4]: Okay. Thank you.

Speaker #3: Thank you Michael . And we have the last question in today's session coming from Henning Kossmann from Barclays . Henning , please .

Arno Antlitz: Thank you, Michael. We have the last question in today's session coming from Henning Cosman from Barclays. Henning, please.

Rolf Woller: Thank you, Michael. We have the last question in today's session coming from Henning Kosman from Barclays. Henning, please.

Speaker #12: Oh yeah . Good morning . Thank you for squeezing me in . I , I apologize in advance . I need to come back to this free cash flow thing for , for 2026 .

Henning Cosman: Oh, yeah. Good morning. Thank you for squeezing me in. I apologize in advance. I need to come back to this free cash flow thing for 2026. Arno, I just want to clarify because I think it's important. Appreciate the sort of color that you're striving for consensus. The clarification is just that's excluding any potential asset sales, right? Because that could, of course, be a big factor. If you could just confirm that we're talking about underlying free cash flow from the operating business. The second question is, please, thanks for reminding us about the EUR 4 billion and EUR 6 billion cost savings through to 2030.

[Analyst 6]: Oh, yeah. Good morning. Thank you for squeezing me in. I apologize in advance. I need to come back to this free cash flow thing for 2026. Arno, I just want to clarify because I think it's important. Appreciate the sort of color that you're striving for consensus. The clarification is just that's excluding any potential asset sales, right? That could, of course, be a big factor. If you could just confirm that we're talking about underlying free cash flow from the operating business. The second question is, please, thanks for reminding us about the $4 billion and $6 billion cost savings through to 2030. Could you just talk about whether that's growth or net of inflation that's happening in the meantime in terms of cost evolution? Also, if that's in any way double counting, for example, with the expected Audi earnings recovery, Porsche earnings recovery from a low base?

Speaker #12: I know , I just want to clarify because I think it's important appreciate the sort of color that you're striving for . Consensus .

Speaker #12: I the clarification is just that's excluding any potential asset sales , right . Because that that could of course be a big factor .

Speaker #12: So if you could just confirm that that we're talking about underlying free cash flow from the operating business and then the second question is , please , thanks for reminding us about the the 4,000,000,006 billion cost savings through to 2030 .

Speaker #12: Could you just talk about whether that's gross or net of inflation? That's happening in the meantime, in terms of cost evolution?

Henning Cosman: Could you just talk about whether that's growth or net of inflation that's happening in the meantime in terms of cost evolution? And also if that's in any way double counting, for example, with the expected Audi earnings recovery, Porsche earnings recovery from a low base, or is that really a number that we should basically stick on top of whatever the underlying result is currently without any netting offsets? Thank you so much.

Speaker #12: And also if that's in any way double counting for example , with the expected Audi earnings recovery , Porsche Earnings recovery from a low base , or is that is that really a number that we should basically stick on top of , of whatever the underlying result is currently without any netting offsets ?

[Analyst 6]: Or is that really a number that we should basically stick on top of whatever the underlying result is currently without any netting offsets? Thank you so much.

Speaker #12: Thank you so much .

Speaker #3: Yeah . No , the the the free cash flow bridge for , for 2026 is we talk about really operating free cash flow .

Arno Antlitz: Yeah, Henning. No, the free cash flow bridge for 2026 is we talk about really operating free cash flow. Bear in mind, we have some also M&A activities planned for 2026, smaller ones. There might be some basically compensation for that, smaller sales of participations. In that free cash flow guidance, we gave you for the color, let's call it color for 2026. We said before that we look into strategic options for our Evelence participation. This Evelence participation, if it works out and we agree on certain options and execute on them, is not included in the color I just gave you in that huge magnitude. I don't rule out that smaller M&A activities in the plus and minus business is then included.

Arno Antlitz: Yeah, Henning. No. The free cash flow bridge for 2026 is we talk about really operating free cash flow. Bear in mind, we have some, yeah, also M&A activities planned for 2026, smaller ones. There might be some basically compensation for that smaller sales of participations. In that free cash flow guidance we gave you or the color, let's call it color for 2026. We said before that we look into options, strategic options for our Everllence SE participation. This Everllence SE participation, if it works out, and we agree on certain options and execute on them, is not included in the color I just gave you in that huge magnitude.

Speaker #3: Bear in mind we have some also M&A activities planned for 2026 smaller ones . There might be some basically compensation for for that smaller sales of participations .

Speaker #3: But in that free cash flow guidance we gave you for the color , let's call it color for 2026 . And we , we , we said before that we look into option strategic options for our avalanche participation .

Speaker #3: This avalanche participation , if it works out and we agree on certain options and execute on them , is not included in in the color , I just gave you in that huge magnitude .

Speaker #3: But I don't rule out that smaller M&A activities in the plus and minus business is then then included .

Arno Antlitz: I don't rule out that smaller, M&A activities in the plus and minus business is then included.

Speaker #12: Perfect . That's very clear . Thank you .

Henning Cosman: Perfect. That's very clear. Thank you.

[Analyst 6]: Perfect. That's very clear. Thank you.

Speaker #7: Yep .

Speaker #3: Yep yeah . And the the 4 to 6 billion net of inflation . Look this is you can't put that on top because when brand group Corp said last year we we achieved try to achieve a target of 6.5% or aim for the target of 6.5% , 2029 of course , the 4 billion are included in that figure and also the the 2 billion for the rest of the group are included in the in the Ebit guidance .

Arno Antlitz: Yeah. The EUR 4 to 6 billion net of inflation. Look, you can't put that on top because when brand group called, it said last year we achieved, tried to achieve a target of 6.5% or aimed for a target of 6.5% in 2029. Of course, the EUR 6 to 4 billion are included in that figure, and also the EUR 2 billion for the rest of the group are included in the EBIT guidance. You can't put that on top to the guidance. It's basically this is the effect of the programs I just mentioned. For example, the EUR 4 billion, yeah.

Pietro Zollino: Yeah, and the four to six billion, net of inflation. Look, you can't put that on top because when the bank report said last year we achieve, try to achieve a target of 6.5% or we aim for a target of 6.5% in 2029. Of course, the six, the four billion are included in that figure and also the two billion for the rest of the group are included in the EBIT guidance. You can't put that on top to the guidance. It's basically, this is the effect of the programs I just mentioned. For example, the four billion net reduction is basically 1.5 billion of dampening of wage increase and the rest comes from productivity and ramp down of the workforce. This is basically included in the guidance of the brands.

Speaker #3: So you can't put that on top to the to the guidance . So it's basically this is the the effect of the of the programs .

Speaker #3: I just mentioned . For example , the 4 billion . Yeah . Net reduction is basically 1.5 billion of dampening of wage increase .

Arno Antlitz: Net reduction is basically EUR 1.5 billion of dampening of wage increase, and the rest comes from productivity and ramp down of the workforce. This is basically included in the guidance of the brands.

Speaker #3: And the rest comes from productivity and and ramp down of the workforce . So this is basically included in the in the guidance of the of the brand .

Speaker #12: Great . Thank you very much .

Henning Cosman: Great. Thank you very much.

Arno Antlitz: Great. Thank you very much.

Speaker #3: Very good . That was the last one actually in our Q&A round . Thanks very much for all the very good discussion . And we are now continuing with the small break before we continue .

Pietro Zollino: Very good. That was the last one, actually, in our Q&A round. Thanks very much for all the very good discussion. We are now continuing with a small break before we continue then with the Q&A of the media colleagues. Thank you very much and talk soon.

Arno Antlitz: Very good. That was the last one actually in our Q&A round. Thanks, very much, yeah, for all the very good discussion, and we are now continuing with a small break before we continue then with the Q&A of the media colleagues. Thank you very much and talk soon.

Speaker #3: Then, with the Q&A of the media colleagues. Thank you very much, and talk soon.

Operator: Ladies and gentlemen, please hold the line. The conference will continue shortly. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session for media. To ask a question, please, as a reminder, press star and one on your telephone.

Speaker #1: Ladies and gentlemen , please hold the line . The conference will continue shortly . Thank you . Ladies and gentlemen , we will now begin the question and answer session for media to ask a question , please .

Rolf Woller: Ladies and gentlemen, please hold the line. The conference will continue shortly. Thank you. Ladies and gentlemen, we will now begin the question and answer session for media. To ask a question, please, as a reminder, press star and one on your telephone.

Speaker #1: As a reminder , press star one on your telephone .

Speaker #2: Yes . Hello , everyone . So let's let's kick off the the Q&A . We have a couple of colleagues already lined up .

Pietro Zollino: Yes, hello, everyone. Let's kick off the Q&A. We have a couple of colleagues already lined up, as I can see in the list. Sebastian, Sebastian from Financial Times, you're the first one. Please, go ahead.

Pietro Zollino: Yes. Hello, everyone. let's kick off the Q&A. We have a couple of colleagues already lined up. As I can see in the list, Sebastian Ash from FT, you're the first one. Please go ahead.

Speaker #2: As I can see in the list , Sebastian . Sebastian ash from FTE or the first one , please go ahead .

Sebastian Ash: Yeah. Hi, Arno, and thank you for taking my question. I was wondering if you could just run us through those tariff numbers one more time. It's a EUR 2.1 billion impact in terms of the tariffs paid year to date. What would that be over the full year in 2025? If I understand, you see that rising to EUR 4 billion next year, how does that fit in within the EUR 5 billion figure? Perhaps you can bring a little clarity there for me. My second sort of addition there would be that with other major OEMs, especially those with a bigger manufacturing presence in the US, then we've seen that the recent adjustments have led to fairly significant reduction in the anticipated tariff burden.

Speaker #13: Yeah . Hi . Arnaud . And thank you for taking my question . I was wondering if you could just run us through those tariff numbers one more time .

[Analyst 1]: Hi, Arno, and thank you for taking my question. I was wondering if you could just run us through those tariff numbers one more time. It's a $2.1 billion impact in terms of the tariffs paid year to date. What would that be over the full year in 2025? If I understand, you see that rising to $4 billion next year. How does that fit in within the $5 billion figure? Perhaps you can bring a little clarity there for me. My second sort of addition there would be that with other major OEMs, especially those with a bigger manufacturing presence in the U.S., we've seen that the recent adjustments have led to fairly significant reduction in the anticipated tariff burden. How do you evaluate that disparity between Volkswagen and those other OEMs? How do you think it affects your competitive position in North America?

Speaker #13: So it's a 2.1 billion impact in terms of the tariffs paid year to date . What would be what would that be over the full year in 2025 .

Speaker #13: And if I understand you see that rising to 4 billion next year , how does that fit in within the 5 billion figure , perhaps you can bring a little clarity there .

Speaker #13: For me . And then my second sort of addition , there would be that with other major OEMs , especially those with a bigger manufacturing presence in the United States .

Speaker #13: Then we've seen that the recent adjustments have led to a fairly significant reduction in the anticipated tariff burden. How do you evaluate that disparity between Volkswagen and those other OEMs, and how do you think it affects your competitive position in North America?

Sebastian Ash: How do you evaluate that disparity between Volkswagen and those other OEMs? How do you think it affects your competitive position in North America?

Speaker #3: Now , thanks . Thanks for that question . Look , yeah , as you said , 2.1 billion for two quarters . So very roughly , if you double that , you are roughly at four , perhaps slightly less .

Pietro Zollino: Yeah, the person. Thanks, thanks for the question. Look, yeah, as you said, $2.1 billion for two quarters. So very roughly, if you double that, you are roughly at $4 billion, perhaps slightly less. This is what the tariff we pay. Why did I say up to $5 billion? Look, the $5 billion we calculated at the beginning of that tariff journey. Back then, we were planning for, let's say, 10% more sales in the U.S. Now we are faced with, or in North America, now we're faced with 8% less. Obviously, there's a swing in our sales, partly and/or mostly due to tariffs. That swing is due to also measures we took, specifically from Mexico to yes. From Mexico to U.S. for cars, it's 27.5%. Based on that tariff situation, some cars are just not profitable. Of course, we have our customers inside.

Arno Antlitz: Yeah. Good question. Thanks for that question. Look, as you said, EUR 2.1 billion for 2 quarters. Very roughly, if you double that, you are roughly at EUR 4, perhaps slightly less, this is what the tariff we pay. Why did I say up to EUR 5 billion? Look, the EUR 5 billion we calculated at the beginning of that tariff journey, back then we were planning for, let's say, 10% more sales in the US and now we are faced with, or in North America now we are faced with this 8% less. Obviously there's a swing in our sales, partly and or mostly due to tariffs. That swing is due to also measures we took, specifically from Mexico to US.

Speaker #3: This is what the tariff we pay . And why did why did I say up to 5 billion . Look , the 5 billion we calculated at the beginning of that that , that tariff journey and back then we were planning for , let's say , 10% more sales in the US , and now we we are faced with or in North America now with sales , with this 8% less .

Speaker #3: So obviously there's a swing in our sales partly . And mostly due to tariffs . And and that swing is due to also measures we took specifically from Mexico to the from Mexico to us for cars is 27.5% .

Arno Antlitz: From Mexico to US for cars, it's 27.5%. Based on that tariff situation, some cars are just not profitable. Of course, we have our customers inside. Of course, we look on the dealers and their business. On that basis, it's just like we took some measures also on the cars we delivered. That leads then what I said up to EUR 5 billion, and that obviously can be optimized, but this is where we stand today.

Speaker #3: And based on that . Yeah . Tariff situation . The some cars are just not not profitable . Of course we have our customers inside .

Speaker #3: Of course we look at the on the on the dealers and , and their business . But on that basis it's just like we , we we took some measures also on , on the , on the cars , we , we delivered and that leads then what I said up to five , 5 billion and that obviously can be optimized .

Pietro Zollino: Of course, we look at the dealers and their business. On that basis, it's just like we took some measures also on the cars we delivered. That leads then, what I said, up to $5 billion. That obviously can be optimized, but this is where we stand today.

Speaker #3: But this is where we stand today.

Speaker #13: And just the full year 2025 . Would that be about sort of 2.8 billion on the on the current run rate ? What would what would that be .

Sebastian Ash: Just the full year 2025, would that be about sort of EUR 2.8 billion on the current run rate? What would that be?

[Analyst 1]: For the full year 2025, would that be about $2.8 billion on the current run rate? What would that be?

Sebastian Ash: Just the full year 2025, would that be about sort of EUR 2.8 billion on the current run rate? What would that be?

Speaker #3: This is a good estimate up to three . Yeah . On tariff paid .

Arno Antlitz: This is a good estimate, up to three, yeah. On tariff paid.

Pietro Zollino: This is a good estimate. Up to 3, yeah, on tariff paid.

Speaker #13: Yes . Understand .

Sebastian Ash: Yes. Understand.

[Analyst 1]: Yes. Understood.

Speaker #3: Yeah okay .

Arno Antlitz: Yeah.

Pietro Zollino: Yeah.

Speaker #2: Thanks . As I can see next in line is Rachel Moore from Reuters . Rachel , can you hear us ?

Pietro Zollino: Okay, thanks. As I can see, next in line is Rachel Moore from Reuters. Rachel, can you hear us?

Arno Antlitz: Okay, thanks. As I can see, next in line is Rachel Moore from Reuters. Rachel, can you hear us?

Speaker #14: Hi . Yes . Can you hear me ?

[Analyst] (Reuters): Hi. Yes. Can you hear me?

[Analyst 2]: Hi. Yes, can you hear me?

Speaker #2: Very good .

Pietro Zollino: Very good. Loud and-

Arno Antlitz: Very good, loud and clear.

Speaker #14: Morning. I wanted to ask about the Porsche cost because we see that there were a bit less than guided last month at $4.7 billion.

[Analyst] (Reuters): Morning. I wanted to ask about the Porsche cost because we see that they were a bit less than guided last month at EUR 4.7 billion. Can you say why that was? What helped here? I also have a question on the recent agreement between the US and China on trade. Do you expect that to fix the rare earths problem in terms of possible supply problems there? Thank you.

[Analyst 2]: Morning. I wanted to ask about the Porsche costs because we see that they were a bit less than guided last month at €4.7 billion. Can you say why that was? What helped here? I also have a question on the recent agreement between the U.S. and China on trade. Do you expect that to fix the rare earths problem in terms of possible supply problems there? Thank you.

Speaker #14: Can you say why that was what helped here ? And I also have a question on the recent agreement between the US and China on trade .

Speaker #14: Do you expect that to fix the rare earths problem in terms of of possible supply problems there ? Thank you .

Arno Antlitz: Yeah. Can you repeat the first question, please?

Pietro Zollino: Yeah. Okay. Can you repeat the first question, please?

Speaker #3: Can can you repeat the first question , please ?

Speaker #14: Yes , the first question , sorry , was on Porsche costs . They were lower than guided . What helped their I think we had 5.1 billion last month .

[Analyst] (Reuters): Yes. The first question, sorry, was on Porsche costs. They were lower than guided. What helped there? I think we had EUR 5.1 billion last month. It turned out today there was a EUR 4.7 billion hit from the strategy change.

[Analyst 2]: Yes. The first question, sorry, was on Porsche costs. They were lower than guided. What helped there? I think we had €5.1 billion last month, and it turned out today there was a €4.7 billion hit from the strategy change.

Speaker #14: And it turned out today there was a $4.7 billion hit from the strategy change.

Speaker #3: Yeah , yeah yeah . The when we when we when we communicated there there to the to the capital market , we had a rough estimate estimation of 3 billion write down in the goodwill of our Porsche participation .

Arno Antlitz: Yeah. No. Yeah, the... Look, when we communicated our talk to the capital market, we had a rough estimation of EUR 3 billion write-down in the goodwill of our Porsche participation. Obviously we had not so much time to an in-depth discussion and calculation. Now in the course of the detailed calculation, we came up with some different assumptions, specifically on the interest rate, then the precise number was then EUR 2.7 billion, but that didn't really change on the... materially. It's just like they were like assumptions in the calculations which we had over the course of time to make more precise. This was the difference between the EUR 2.7 and the EUR 3 billion.

Pietro Zollino: Yeah. The look, when we communicated the ad hoc to the capital market, we had a rough estimation of $3 billion write-down in the goodwill of our Porsche participation. Obviously, we had not so much time to do an in-depth discussion and calculation. Now, in the course of the detailed calculation, we came up with some different assumptions specifically on the interest rate. The precise number was then $2.7 billion. That didn't really change materially. It's just like there were assumptions in the calculations which we had over the course of time to make more precise. This was the difference between the $2.7 billion and the $3 billion. Between U.S. trade and China, obviously, a lot of current trade restrictions are based on the relation between U.S. and China. Obviously, it's very important for us that some of the topics there are solved.

Speaker #3: But obviously we had not so much time to to in-depth discussion and calculation . And in the course of the detailed calculation , we we came up with some different assumptions , specifically on the interest rate and then the precise number was then 2.7 billion .

Speaker #3: But that didn't really change on the on the materially . It's just like they were like assumptions in a calculation which we had over the course of time to make more precise , this was the difference between the 2.7 and the 3 billion .

Speaker #3: And between us and China . Obviously , a lot of current trade restrictions are based on on the the yeah , the relation between US and China and obviously it's very important for us that these .

Arno Antlitz: Between US trade and China, obviously a lot of current trade restrictions are based on the relation between US and China. Obviously, it's very important for us that this, some of the topics there are solved, specifically on the next period we discussed that before. No, this is not a physical supply shortage. It's a supply shortage that's based on political decisions and other decisions. This is also the way that topic can be solved, and we really look forward to these trade talks, but I don't have more information than you have on specific issues.

Speaker #3: Yeah , this some of the the the topics there are solved specifically on the next page we discussed that before . Not this is not a physical supply shortage .

Pietro Zollino: Specifically on the next media, we discussed that before. No, this is not a physical supply shortage. It's a supply shortage that's based on political decisions and other decisions. This is also the way that topic can be solved. We really look forward to these trade talks. I don't have more information than you have on specifics.

Speaker #3: It's a supply shortage . That's based on on on political decisions and other decisions . And so this is also the way that topic can be solved .

Speaker #3: And we really look forward to , to to this trade talks . But I don't have more information than you have on specificity .

Speaker #14: On rare earths . You can't speak to that . Any easing and the problems there .

[Analyst] (Reuters): On rare earths, you can't speak to that, any easing in the problems there?

[Analyst 2]: On rare earths, you can't speak to that. Any easing in the problems there?

Speaker #2: It's really hard to understand your question.

Arno Antlitz: It's really hard to understand your question.

Speaker #14: Apologies. The question on rare earths supply—whether the U.S. and China agreement helps in that regard.

[Analyst] (Reuters): Apologies. The question on rare earth supply, whether the US and China agreement helps in that regard?

[Analyst 2]: Apologies. The question on rare earths supply, whether the U.S. and China agreement helps in that regard.

Speaker #2: I think it's the same topic really . We just know what you know out of the news . So I , I think it's as Anna mentioned , it's quite too early to to give any estimations , assumptions to what the outcome of it .

Arno Antlitz: I think it's the same topic really. We just know what you know out of the news. I think it's as Anna mentioned, it's quite too early to give any estimations, assumptions towards the outcome of it.

Arno Antlitz: I think it's the same topic, really. We just know what you know out of the news. I think it's, as Arno Antlitz mentioned, it's quite too early to give any estimations, assumptions, to what's the outcome of it.

Speaker #2: Sorry .

Speaker #14: Okay . Thank you .

[Analyst] (Reuters): Okay. Thank you.

[Analyst 2]: Okay, thank you.

Speaker #2: Okay . You're welcome . So next on the list , Monica Raymond from Bloomberg Monica , are you on the line ?

Arno Antlitz: Okay. You're welcome. Next on the list, Monica Raymond from Bloomberg. Monica, are you on the line?

Arno Antlitz: Okay, you're welcome. Next on the list, Monica Raymond from Bloomberg. Monica, are you on the line?

Speaker #15: I am indeed. Can you hear me? All right.

[Analyst 3]: I am indeed. Can you hear me all right?

Monica Raymond: I am indeed. Can you hear me all right?

Speaker #2: Excellent . Go ahead .

Arno Antlitz: Excellent. Go ahead.

Arno Antlitz: Yes, excellent. Go ahead.

Speaker #15: Wonderful . Thanks so much . I just I had two questions . One , centering . Not necessarily only on period , but also on power .

Monica Raymond: Wonderful. Thanks so much. I just, I had two questions. One centering, not necessarily only on Nexperia, but also on PowerCo SE. I'm wondering, Mr. Antlitz, how your view of PowerCo SE has changed in light of what's happened with Nexperia and all of the geopolitical tussling surrounding rare earths and Chinese supply of Chinese-controlled supply chains in general. Does this put additional pressure on PowerCo SE to ramp up production in Salzgitter in order to maintain or to have a more secure supply of batteries with China flexing its powers on rare earths and chips? Basically, I'm wondering how does Volkswagen feel about the security of its supply of batteries? My second question would be on the dividend. You said that Volkswagen is going to stick to the minimum 30% payout ratio.

[Analyst 3]: Wonderful. Thanks so much. I just had two questions, one centering not necessarily only on Nexperia but also on PowerCo. I'm wondering, Mr. Antlitz, how your view of PowerCo has changed in light of what's happened with Nexperia and all of the geopolitical tussling surrounding rare earths and Chinese supply of Chinese-controlled supply chains in general. Does this put additional pressure on PowerCo to ramp up production in Southskipta in order to maintain or to have a more secure supply of batteries? With China flexing its powers on rare earths and chips, basically, I'm wondering how does Volkswagen feel about the security of its supply of batteries? My second question would be on the dividend. You said that Volkswagen is going to stick to the minimum 30% payout ratio.

Speaker #15: Co I'm wondering , Mr. Arno Antlitz , how your view of Power Co has changed in light of what's happened with Nexperia and all of the geopolitical tussling surrounding rare earths and Chinese supply of Chinese control of supply chains in general , does this put additional pressure on power Co to ramp up production in South Sekitar in order to maintain or to to have a more secure supply of batteries with China flexing its powers on rare earths and chips , basically , I'm wondering how does Volkswagen feel about the security of its supply of batteries ?

Speaker #15: And then my second question would be on the dividend. You said that Volkswagen is going to stick to the minimum 30% payout ratio.

Speaker #15: I was just wondering, do you see that as sort of being the bottom of the barrel in terms of how low dividends could go, or do you see that as being one of the levers that would need to be changed to keep Volkswagen's operations sort of in the black or keep Volkswagen's operations looking all right for investors?

[Analyst 3]: I was just wondering, do you see that as sort of being the bottom of the barrel in terms of how low dividends could go? Or do you see that as being one of the levers that would need to be changed to keep Volkswagen's operations in the black or keep Volkswagen's operations looking all right for investors?

Monica Raymond: I was just wondering, do you see that as sort of being the bottom of the barrel in terms of how low dividends could go? Or, do you see that as being one of the levers that would need to be changed to keep Volkswagen's operations sort of in the black or keep Volkswagen's operations looking all right for investors?

Speaker #3: Yeah . Monica , thank you for for your two questions . First and foremost , the the the basic view on power core has not changed because there were always several reasons why we embarked on that strategy to to invest in our own battery capacity .

Arno Antlitz: Monica, thank you for your two questions. First and foremost, the basic view on PowerCo has not changed because there were always several reasons why we embarked on that strategy to invest in our own battery capacity, you know. First and foremost, obviously, that we have it in our own hands, we have the technology on our own hands. We introduced the Unified Cell, which is a huge advantage in the competition. Just to remember that within one cell, we can offer LFP and NMC chemistry, there's huge flexibility. Last but not least, we always said that we invest in PowerCo also to be a kind of independent on the political situations.

Pietro Zollino: Yeah, Monica, thank you for your two questions. First and foremost, the basic view on PowerCo has not changed because there were always several reasons why we embarked on that strategy to invest in our own battery capacity. First and foremost, obviously, that we have it in our own hands. We have the technology in our own hands. Then we introduced the unified cell, which is a huge advantage in the competition. Just to remember that within one cell, we can offer LFP and NMC chemistry, so there's a huge flexibility. Last but not least, we always said that we invest in PowerCo also to be kind of independent on the political situations. This is why we're not only investing in the capacity, but also in upstream and downstream, specifically in upstream initiatives like securing raw materials, lithium, and cobalt, and other materials.

Speaker #3: First and foremost . Obviously , that we have it in our own hands . We have the technology on our own hands . Then we can we introduce the unified cell , which is a huge advantage in the in the competition , just to remember that within one cell , we can offer LFP and NMC chemistry .

Speaker #3: So the huge flexibility and last but not least , we always said that we invest in power core also to be a kind of independent on the political situations .

Speaker #3: And this is why we're not only investing in the in the capacity , but also in , in , in upstream and downstream , specifically in upstream initiatives like securing raw materials , lithium and cobalt and other materials .

Arno Antlitz: This is why we're not only investing in the capacity, but also in upstream and downstream, specifically in upstream initiatives like securing raw materials, lithium, cobalt, and other materials. This was always a part of the strategy, and since it becomes even more relevant going forward. On the other hand, what we do, and I was very transparent on that, we adapt the ramp-up of PowerCo to the needs we have, we see in the global market and also with us. This is why I said before, in the light of the new expectations about the ramp-up of battery, we basically adjust the ramp-up of the PowerCo. We fully stick to the three sites we have in Salzgitter, in Spain, and in Ontario, Canada.

Speaker #3: So this was always a part of the strategy . And it becomes even more relevant going forward . On the other hand , what we do and I was very transparent on that .

Pietro Zollino: This was always a part of the strategy, and it becomes even more relevant going forward. On the other hand, what we do, and I was very transparent on that, we adapt the ramp-up of PowerCo to the needs we see in the global market and also with us. This is why I said before, in the light of the new expectations about the ramp-up of battery, we basically adjust the ramp-up of PowerCo. We fully stick to the three sites we have in Salzgitter, in Spain, and in Ontario, Canada. Of course, we have to adapt to market realities, and if the ramp-up of electrification, specifically now in the U.S., is not as fast as expected, we will react with postponing some of the blocks in the sites. That has nothing to do with less commitment to PowerCo, but rather with adapting to market realities.

Speaker #3: We adapt the ramp up of power to the needs . We we have . We see in the global market and also with us .

Speaker #3: So this is why I said before , in the light of of the new expectations about the ramp up of battery , we we basically adjust the ramp up of of the power .

Speaker #3: We , we fully stick to the three sites we have in , in Spain and in Ontario , Canada . But of course we have to adapt to market realities .

Arno Antlitz: Of course, we have to adapt to market realities. If the ramp-up of electrification specifically now in the US is not as fast as expected, we will react with postponing some of the blocks in the sites. That has nothing to do with less commitment to PowerCo, but rather with adapting to market realities. The dividend that, as I said, our dividend policy is a payout ratio of at least 30%, and that's obviously depending on the earnings per share we achieve. The 30% as a relative measure, we have as a policy since years and we haven't changed that.

Speaker #3: And if the if the ramp up of electrification specifically now in the US is not as fast as expected , we will react with postponing some of the blocks in in the sites .

Speaker #3: But that has nothing to do with less commitment to the power core, but rather with adapting to market realities and the dividend that this has said.

Pietro Zollino: The dividend, as I said, our dividend policy is a payout ratio of at least 30%. That's obviously depending on the earnings per share we achieve, but the 30% as a relative measure we have as a policy since years, and we haven't changed that.

Speaker #3: Our dividend policy is a payout ratio of at least 30%. And that, obviously, depends on the earnings per share we achieve.

Speaker #3: And, and, and, but the 30% as a relative measure we have as a policy since years, and we haven't changed that.

Speaker #15: Thank you .

Monica Raymond: Thank you.

[Analyst 2]: Thank you.

Speaker #2: Okay . Now we're moving to our home region here in Lower Saxony . It's a DPA Frank Johansson . Frank , can you hear us ?

Arno Antlitz: Okay. Now we're moving to our home region here in Lower Saxony. It's the DPA, Frank Johansen. Frank, can you hear us?

Arno Antlitz: Now we're moving to our home region here in Lower Saxony. It's the dpa, Frank Johannsen. Frank, can you hear us?

Speaker #16: Yes .

[Analyst 4]: Yes, I can hear you. Hello?

Speaker #7: Yes , I can hear you . Hello ? Yes , just just a short question to the semiconductor problems and crisis . So could you give me give us just a short , a brief summary how the situation and how to solve the problem .

Frank Johannsen: Yeah. Yes, I can hear you. Hello? Yes. Just a short question to the semiconductor problems and crisis. Could you give me, give us just a short, brief summary, how's the situation and how to solve the problem? Because, well, I think that's quite a huge problem. If you say your outlook is supposed that there won't be no shortage, that's quite not, simply not realistic, I think. How's the situation and how to solve the problem?

Pietro Zollino: Yes.

[Analyst 4]: Just a short question to the semiconductor problems and crisis. Could you give us just a short, brief summary of how's the situation and how to solve the problem? I think that's quite a huge problem. If you say your outlook is supposed that there won't be no shortage, that's quite not simply not realistic, I think. How's the situation and how to solve the problem?

Speaker #7: Because , well , I think there's quite a huge problem . And if you say your outlook is supposed that there will be no shortage , that's quite not simply not realistic .

Speaker #7: I think . So how's the situation and how to solve the problem ?

Speaker #3: Yeah , first and foremost , I must reiterate that I'm really proud of the team . How dedicated they work . The transparency .

Arno Antlitz: First and foremost, I must reiterate that I'm really proud of the team, how dedicated they work, the transparency. We have really much more transparency than we had back in the semiconductor crisis. We also know these are not like very complicated semiconductors. It's more like standard semiconductors. The shortage was not caused by an earthquake or something like happened, just like a bipolitical, obviously political, discussion. This is how it need also to be solved. I'm really look forward to that the parties sit together and find solutions for the German, European, and basically the worldwide industry. Yeah, how it can be solved, as said before, first and foremost politically, but we cannot stand still. We have responsibility.

Pietro Zollino: Yeah. First and foremost, I must reiterate that I'm really proud of the team, how dedicated they work, the transparency. We have really much more transparency than we had back in the semiconductor crisis. We also know that these are not like very complicated semiconductors. It's more like standard semiconductors. The shortage was not caused by an earthquake or something like that happened, just like a political, obviously political, discussion. This is how it needs also to be solved. I'm really looking forward to the parties sitting together and finding solutions for the German and European and basically the worldwide industry. Yeah. How can it be solved? As I said before, first and foremost, politically, but we cannot stand still. We have a responsibility. We try to find alternative sources, get it from alternative sources. We achieved that so far.

Speaker #3: We have much more transparency than we had back in the semiconductor crisis. We also know that these are not very complicated semiconductors.

Speaker #3: It's more like standard standard semiconductors . And and the shortage was not caused by a earthquake or something like happened . Just like by political political discussion .

Speaker #3: And this is how it needs also to to to be solved . I'm I'm really look forward to that . The parties sit together and find solutions for the German and European and basically the worldwide wide industry .

Speaker #3: Yeah . How it can be solved . As I said before , first and foremost politically , but we cannot stand still . We have a responsibility .

Speaker #3: So we try to find alternative sources , get it from alternative sources . We achieved that so far . And we look on the the issue day by day and , and week by week .

Arno Antlitz: We try to find alternative sources. Get it from alternative sources. We achieved that so far, we look on the issue day by day and week by week. What we can say, until the end of next week we have enough supply and we continue to try to find alternative sources. The truth is, week by week we work forward. The good news is so far until end of next week we can say that we don't lose any cars on that topic.

Pietro Zollino: We look on the issue day by day and week by week. What we can say, until the end of next week, we have enough supply. We continue to try to find alternative sources. The truth is, week by week, we work forward. The good news is, so far, until the end of next week, we can say that we don't lose any cars on that topic.

Speaker #3: And what we can say until the end of next week , we have enough supply and we continue to try to find alternative sources .

Speaker #3: And so we the truth is , week by week , we work forward . But the good news is so far until end of next week , we we can say that we don't lose any cars on that topic .

Speaker #2: Okay, I think this is as much as we can say honestly at the moment. Next on the list would be Christina.

Arno Antlitz: Okay. I think this is as much as we can say, honestly, at the moment. Next on the list would be Christina Ammann. Christina, are you on the line?

Pietro Zollino: Okay. I think this is as much as we can say, honestly, at the moment. Next on the list would be Christina Amann. Christina, are you on the line?

Speaker #2: Christina, are you on the line?

Speaker #17: And I hope you can hear me.

Christina Amann: Line, I hope you can hear me.

Pietro Zollino: Line, I hope you can hear me.

[Analyst 5]: I hope you can hear me.

Speaker #2: Excellent .

Arno Antlitz: Excellent.

Speaker #17: Fantastic . I have one question on the Audi plant . Are you still optimistic to take a decision this year ? Or do you think this will drag into next year ?

Christina Amann: Fantastic. I have one question on the Audi plant. Are you still optimistic to take a position this year, or do you think this will drag into next year? Second question on the overall investment. You said that in the current planning round it's EUR 165 billion. That's going to go down. Do you have any target you can give for the next planning round? Where's your goal? Where do you expect investments to go? The third question would be on divestments. There's the Traton stake, where you have said in the past that you want to reduce. There has been a sale, but is there more to come? Second question on Everlance, which is going on sale. There's been reports lately. Do you have any timeframe or any details on that?

Arno Antlitz: Fantastic. I have one question on the Audi plant. Are you still optimistic to take a position this year, or do you think this will drag into next year? Second question on the overall investment. You said that in the current planning round it's EUR 165 billion. That's going to go down. Do you have any target you can give for the next planning round? Where's your goal? Where do you expect investments to go? The third question would be on divestments. There's the Traton stake, where you have said in the past that you want to reduce. There has been a sale, but is there more to come? Second question on Everlance, which is going on sale. There's been reports lately. Do you have any timeframe or any details on that?

[Analyst 5]: Fantastic. I have one question on the Audi plant. Are you still optimistic to take a position this year, or do you think this will drag into next year? Second question on the overall investment. You said that in the current planning round, it's €165 billion. That's going to go down. Do you have any target you can give for the next planning round? Where's that? Where's your goal? Where do you expect investments to go? The third question would be on divestments. There's the Traton stake where you have said in the past that you want to reduce. There has been a sale, but is there more to come? Second question on Everlands, which is going on sale. There's been reports lately. Do you have any timeframe or any details on that? The third would be PowerCo, which was going to be investment-ready this year.

Speaker #17: Second question on the overall investment. You said that in the current planning round, it's $165 billion. That's going to go down.

Speaker #17: Do you have any targets you can give for the next planning round? Where's that? What was your goal? Where do you expect investments to go?

Speaker #17: And the third question would be on divestments. There's the Traton stake where you have said in the past that you want to reduce.

Speaker #17: There has been a sale , but is there more to come ? Second question on Everlance , which is going on sale , there's been reports lately .

Speaker #17: Do you have any time frame or any any any details on that ? And the third would be Powerco , which was going to be investment ready this year .

Christina Amann: The third would be PowerCo, which was going to be investment ready this year. Do you have any information on where's that going? Is there any investment of any outside investor to come, or will that be something for even later? Thanks.

Arno Antlitz: The third would be PowerCo, which was going to be investment ready this year. Do you have any information on where's that going? Is there any investment of any outside investor to come, or will that be something for even later? Thanks.

Speaker #17: Do you do you have any , any information on where that going ? Is there any investment of any outside investor to come or will that be something for even later ?

[Analyst 5]: Do you have any information on where's that going? Is there any investment of any outside investor to come? Or will that be something for even later? Thanks.

Speaker #17: Thanks .

Speaker #3: Yeah . On the investment side , I said we have 265 now for the next five years . Inside . And we even prepare for less because I said if we decided on the on on , on a potential plant for Audi , then we will compensate that in in 165 5 billion .

Arno Antlitz: Yeah. On the investment side, I said we have the 165 now for the next 5 years in sight, and we even prepare for less because I said if we decided on a potential plant for Audi, then we will compensate that in EUR 165 billion. That shows we will work down the 165 over time. Because if we decided on the Audi plant, then that means that we will compensate that. We prepare already for a lower figure.

Pietro Zollino: Yeah. On the investment side, as I said, we have the €165 billion now for the next five years inside. We even prepare for less because I said if we decided on a potential plant for Audi, then we will compensate that in the €165 billion. That shows we will work down the €165 billion over time because if we decided on the Audi plant, that means that we will compensate that. We prepare already for a lower figure. We also gave a guidance of 10% R&D CapEx combined for 2027 on this, which is also significantly lower than today, where we stand at 12% to 13% in terms of sales. Divestments, we were very transparent about that. There are some chances. We look at PowerCo, and we look into potential options for Everlands. It's too early to give you more information. We don't have more information on that.

Speaker #3: And so that shows we will work down the 165 over time because if we decided on , on the , on the Audi plant , then , then that means that we will compensate that .

Speaker #3: So we prepare already for a for a , a lower figure . And we also gave a guidance of 10% R&D CapEx combined for 2027 , which is also significantly lower than than today , where we stand at 12 to 13% in in terms of sales divestments were about that .

Arno Antlitz: We also gave a guidance of 10% R&D CapEx combined for 2027 on this, which is also significantly lower than today, where we stand at 12% to 13% in terms of sales. Divestments, we were very transparent about that. There are some chances. We look at PowerCo, and we look into potential options for Everlance, but it's too early to give you specific more information. We don't have more information on that. As soon as we make progress or decided on specific steps, we will inform you. Hopefully you understand that it's too early to give you specifics. What I can reiterate is we are committed on that path.

Speaker #3: There are some chances . We look at Powercor and yeah , we look into potential options for for Avalance , but it's too early to give you a specific .

Speaker #3: Yeah , more information . We don't have more information on that . As soon as we make progress or decided on specific steps , we will we will inform you .

Pietro Zollino: As soon as we make progress or decide on specific steps, we will inform you. I hope you understand that it's too early to give you specifics. What I can reiterate is we are committed on that path. We started that path back in Hockenheim in our communication, and we make progress on that. The progress is also shown by a first small step on Traton, which we achieved at the beginning of the year.

Speaker #3: But it's hopeful you understand that it's too early to give you specificity. What I can reiterate is we are committed to that path.

Speaker #3: We started that that path back in Hockenheim in our communication and , and and we make progress on that . And you show the progress also shown by a first small step on , on , on .

Arno Antlitz: We started that path back in Hockenheim in our communication and we make progress on that. You show the progress also shown by a first small step on Traton, which we achieved at the beginning of the year.

Speaker #3: Trading , which we achieved at the beginning of the year .

Speaker #2: Okay . So active portfolio management .

Pietro Zollino: Okay. active portfolio management.

Arno Antlitz: Okay. Active portfolio management.

Christina Amann: The last one was the Audi plant. Do you still expect a decision this year?

Pietro Zollino: The last one was the Audi plant. Do you still expect a decision this year?

[Analyst 2]: The last one was the Audi plant. Do you still expect a decision this year?

Speaker #17: Was the Audi plan finalized? Do you still expect a decision this year?

Speaker #3: Yeah , we we all of us very transparent on that . We said we have to decide on the Audi plant this year .

Pietro Zollino: Yeah. Oliver was very transparent on that. We said we have to decide on the Audi plant this year. This is still what we are looking for.

Arno Antlitz: Yeah. Oliver was very transparent on that. We said we have to decide on the Audi plant this year. This is still what we are looking for.

Speaker #3: And this is still what we are looking for.

Speaker #2: Good . So on on the list I can see the next one in line would be laser from Handelsblatt . Asa , can you hear us ?

Pietro Zollino: Good. On the list I can see, the next one in line would be Lazar Backovic from Hanspat. Lazar, can you hear us?

Arno Antlitz: On the list, I can see the next one in line would be Lazar Bakovic from Handelsblatt. Lazar, can you hear us?

Speaker #2: Yeah .

Speaker #7: Thank you so much .

[Analyst 6]: Thank you so much.

Lazar Backovic: Yeah. Thank you so much.

Speaker #2: Very good .

Pietro Zollino: Very good.

Arno Antlitz: Very good.

Speaker #18: Okay , so it's two topics , but . But for questions with that . So two questions each . First you had to write off billions because of your adjustments at Porsche regarding electric your vehicle plans .

[Analyst 6]: Okay. It's two topics, but four questions with that. Two questions each. First, you had to write off billions because of your adjustments at Porsche regarding your electric vehicle plant. Can you in any way rule out that this will be repeated within the next months within other brands, and that we will continue to see one-offs? That will be the first question. Second question in this context, you are feeling strong pressure, so against this backdrop, are there any considerations to postpone your future platform SSP once again in order to stretch any investment? Regarding Nexperia and chips, maybe you can put a bit of color onto what exactly is missing and how long these stocks will last. I think there is sometimes a mixture. Sometimes they say it's semiconductors, then it's diodes or something else. That will be interesting, what exactly is missing.

Lazar Backovic: Okay. It's two topics, but four questions with that. Two questions each. First, you had to write off billions because of your adjustment at Porsche regarding electric, your vehicle plans. Can you in any way rule out that this will be repeated within the next months within other brands, and that we will continue to see one-offs? That will be the first question. Second question in this context, you are feeling strong pressure, and against this backdrop, are there any considerations to postpone your future platform SSP once again in order to stretch any investment? Regarding Nexperia and chips, maybe you can put a bit color onto what exactly is missing and how long the stocks will last.

Speaker #18: Can you in any way rule out that this will be repeated within the next months ? Within other brands , and that we will continue to see one offs ?

Speaker #18: That will be the first question . Second question in this context , you are feeling strong pressure . So and against this backdrop , are there any considerations to to postpone your future platform ?

Speaker #18: SSP once again , in order to stretch any investments ? And then regarding an experience and and chips , maybe you can put a bit color onto what exactly is missing and how long these stock will the stocks will last .

Lazar Backovic: Because, yeah, I think there is sometimes a mixture. Sometimes they say it's semiconductors, then it's diodes or something else. That will be interesting what exactly is missing. The last question would be, did I get that right that you do not have any assessment on the deal made between Xi and Trump regarding rare earths? Yeah, any comment on this would help. Thank you.

Speaker #18: Because yeah , I think there is sometimes a mixture , sometimes they say it's semiconductors . Then it's diets or something , something else that would be interesting .

Speaker #18: What exactly is missing? And the last question would be, did I get that right that you do not have any assessment on the deal made between XI and Trump regarding rare earths?

[Analyst 6]: The last question would be, did I get that right that you do not have any assessment on the deal made between Xi and Trump regarding rare earths? Any comment on this would help. Thank you.

Speaker #18: Yeah , any any comment on this ? Would would help . Thank you .

Speaker #3: A lot of questions . Thank you for them . And what I said in the call earlier . There might be smaller one offs here and there , but we don't expect from today's perspective significant one offs going forward in the magnitude .

Pietro Zollino: Yeah. A lot of questions. Thank you for them. What I said in the call earlier, there might be smaller one-offs here and there, but we don't expect from today's perspective significant one-offs going forward in the magnitude of what we just communicated. In terms of investments on our future platforms, we are committed to ramp up the so-called SSP. What I said before, we look into potentially even more synergies in the group. That more synergies might mean that we combine even more cars from different brands on certain platforms in the course of the SSP and optimize that. This is specifically what we look at both in terms of software and in terms of hardware. This is currently what we look at.

Arno Antlitz: Yeah, a lot of questions. Thank you for them. What I said in the call earlier, there might be smaller one-offs here and there, but we don't expect from today's perspective, significant one-offs, going forward in the magnitude what we just communicated. Then in terms of, yeah, on investments on our future platforms, we are committed to ramp up the so-called SSP. What I said before, we look into, potentially even more synergies, in the group, and that more synergies might mean that we combine even more cars from different brands on certain platforms in the course of the SSP and optimize that. This is specifically what we look at both in terms of software and in terms of hardware.

Speaker #3: What we what we just communicated . And then in terms of yeah , on on investments , on our future platforms , we are committed to ramp up the so-called SSP .

Speaker #3: What I said before is that we look into potentially even more synergies in the group, and that more synergies might mean that we combine even more of cars from different brands on certain platforms in the course of the SSP and optimize that.

Speaker #3: This is specifically what what we look at both in terms of software and in terms of hardware . But but this is this is currently what we look at .

Arno Antlitz: This is currently what we look at this, but it's more like an optimization of using the funds we have in the group and using the huge scale and the potentials we have in the group's more stringent. Let's not forget, we basically invented the platform strategy and that platform strategy was very successfully implemented over years in terms of R&D. Now the next phase would be that we combine the cars from the same platforms, even more stringent also for production. When I look today, Golf is on the same platform like an Audi and other cars, like Leon and Octavia, but every brand today produces the Golf by themselves. For example, produces Golf, Audi produces Audi A4, Škoda produces Octavia.

Speaker #3: But it's more like an optimization of , of using the funds we have in the group and using the huge scale and , and the potentials we have in the , in the groups .

Pietro Zollino: It's more like an optimization of using the funds we have in the group and using the huge scale and the potentials we have in the group more stringent. Let's not forget, we basically invented the platform strategy. That platform strategy was very successfully implemented over years in terms of R&D. Now the next phase would be that we combine the cars from the same platforms even more stringent also for production. Look, today, Golf is on the same platform like an Audi and other cars, like Leon and Octavia. Every brand today produces the Golf by themselves. Volkswagen produces Golf. Audi produces Audi A4. Skoda produces Octavia. The next, I would say, wave of platform strategy is producing them on the same line in the same factories, which will benefit us and has no impact in terms of the customer.

Speaker #3: More, more stringent. Let's not forget, we basically invented the platform strategy, and that platform strategy was very successfully implemented over the years in terms of R&D.

Speaker #3: And now the next phase would be that we combine the cars from the same platforms even more injured . Also , for production .

Speaker #3: And look, today, Golf is on the same platform as an Audi and other cars like Leon and Octavia. But every brand today produces the Golf by themselves.

Speaker #3: Produces Golf or produces Audi A4. Skoda produces Octavia, and the next I would say wave of platform strategy is producing them on the same line in the same factories, which will.

Arno Antlitz: The next, I would say, wave of platform strategy is producing them on the same line in the same factories, which will benefit us and has no impact in terms of the customer. Customer value is even higher in terms of differentiation in front of the customers, but we save synergies in combining these cars. Another example is, for example, the ID.2all family, it's combined in Spain, although there are three brands involved. These are the things we look at. Yeah, in terms of chips, it's, I think it's more than 2,000 small different chips. Let's call them chips. I cannot really go through them piece by piece. It's really very small, very, really cheap SEMIs, not the difficult ones.

Speaker #3: Benefit us and has no impact in terms of the customer . Customer values , even higher in terms of differentiation in front of the customers .

Pietro Zollino: Customer value is even higher in terms of differentiation in front of the customers. We save synergies in combining these cars. Another example is the ID.2 family. It's combined in Spain, although there are three brands involved. These are the things we look at. In terms of chips, I think it's more than 2,000 small different chips. Let's call them chips. I cannot really go through them piece by piece. It's really very small, really cheap semis, not the difficult ones. It makes it also difficult to find alternative solutions because we are not talking about three or five or seven different units, more like thousands. The assessment of the talks between Mr. Trump and Mr. Xi, I don't have any additional information that's on top of what you potentially have. I can't comment on what we can expect there.

Speaker #3: But we save synergies in combining these cars . Another example is , for example , the ID family . It's combined in Spain , although there are three brands involved .

Speaker #3: So these are the things we look at in terms of chips . It's I think it's more than 2000 small different chips . Let's call them chips .

Speaker #3: So I can cannot really go go through them by by piece by piece . It's really very small , very really cheap . Cheap semis .

Speaker #3: Not not the difficult ones . And and so it makes it also difficult to find alternative solutions because we are not talking about three or 5 or 7 different units , more like like thousands , you know .

Arno Antlitz: It makes it also difficult to find alternative solutions because we are not talking about three or five or seven different units, more like thousands. Again, the assessment of the talks between Mr. Trump and Mr. Xi, I don't have any additional information that on top what you potentially have. I cannot comment on what we can expect there.

Speaker #3: And again , the assessment of the talks between Mr. Trump and Mr. G . I don't have any additional information that that that on top of what you potentially have .

Speaker #3: So I , I'm kind of comment on what we can expect there .

Speaker #18: Thank you Arnold .

[Analyst] (Reuters): Thank you, Arno.

[Analyst 6]: Thank you, Arno.

Speaker #2: So at least from the outlet we move away from , from Germany to the New York Times . Melissa , are you on the call ?

Arno Antlitz: At least from the outlet, we move away from Germany to the New York Times. Melissa, are you on the call?

Pietro Zollino: At least from the outlet, we move away from Germany to The New York Times. Melissa, are you on the call?

Speaker #19: Yes . I'm here . Can you hear me ?

[Analyst] (The New York Times): Yes, sir, I'm here. Can you hear me?

[Analyst 7]: Yes, I'm here. Can you hear me?

Speaker #2: Yes. Excellent. Very good.

Pietro Zollino: Yes. Excellent. Very good.

Arno Antlitz: Yes, excellent. Very good.

Speaker #19: Fantastic . Great . Thanks so much . My first question would be during the IAEA , Oliver Blume spoke very clearly about cutting a deal with the Trump administration , not mitigate or not avoiding tariffs , but given VW s big investment in the states that there would be some way to to carve something out , he said , that was expected in the coming weeks .

[Analyst] (The New York Times): Fantastic. Great. Thanks so much. My first question would be, during the IAA, Oliver Blume spoke very clearly about cutting a deal with the Trump administration, not mitigate or not avoiding tariffs, but given VW's big investment in the States, there would be some way to carve something out. He said that was expected in the coming weeks. I'm just looking for some guidance on where that is at and what kind of timeline you're looking at. Coming back to Nexperia, what would be the result if you do not find supplies, say, for a week? What goes down first, or where would you have to halt production? Thanks.

[Analyst 7]: Fantastic.

Arno Antlitz: Thank you.

[Analyst 7]: Great. Thanks so much. My first question would be, during the IAA, Oliver Blume spoke very clearly about cutting a deal with the Trump administration, not mitigate or not avoiding tariffs, but given Volkswagen's big investment in the states, that there would be some way to carve something out. He said that was expected in the coming weeks. I'm just looking for some guidance on where that is at and what kind of timeline you're looking at. Coming back to Nexperia, what would be the results if you do not find supplies, say, for a week? What goes down first or where would you have to halt production? Thanks.

Speaker #19: I'm just looking for some guidance on where that is at and what kind of timeline you're looking at , and coming back to an area .

Speaker #19: What would be the results if you do not find supplies , say , for a week ? What goes down first or where would you have to halt production ?

Speaker #19: Thanks .

Speaker #3: Yeah , I think I start with the second question first because I it's I , I really let's not speculate now what what I can say we secure the production day by day and week by week .

Arno Antlitz: Yeah. I think I'll start with the second question first because I really, let's not speculate. What I can say, we secure the production day by day and week by week. We are now safe until end of next week, and the teams continue to work. I don't wanna really speculate where and when. For the time being, it's good news that we are safe for another week. This is how we work through that topic, you know, find alternative solutions and find alternative suppliers of SEMIs together with our first year suppliers. I'm very pleased with the performance of the teams and the processes and the cooperation we see on the whole, in the whole value chain.

Pietro Zollino: I think I start with the second question first because I really, let's not speculate. What I can say, we secure the production day by day and week by week. We are now sure, safe until the end of next week. The teams continue to work. I don't want to really speculate where and when. For the time being, it's good news that we are safe for another week. This is how we work through that topic, find alternative solutions and find alternative suppliers of semis together with our first-tier suppliers. I'm very pleased with the performance of the teams and the processes and the cooperation we see in the whole value chain. In terms of the U.S. deal, I think we have no new information on that topic. We are absolutely committed to the U.S. It's one of the biggest and most profitable markets.

Speaker #3: We are now safe until the end of next week . And the teams continue to work . And we I don't want to speculate where and when for the time being .

Speaker #3: It's good news that we are safe for another week . And and this is how we how we work through that topic . Find alternative solutions and and and find alternative suppliers of of Siemens together with our first suppliers .

Speaker #3: And I'm very pleased with the performance of the teams and the processes and the cooperation. We see, on the whole, in the whole value chain.

Speaker #3: Yeah , in terms of US deal , I think we have no new information on on that topic . We are absolutely committed to the yes , it's one of the the biggest and most profitable market and more localization would be one , one , one measure to increase our footprint .

Arno Antlitz: In terms of US deal, I think we have no new information on that topic. We are absolutely committed to the US. It's one of the biggest and most profitable market, and more localization would be one measure to increase our footprint there. I kindly ask for your understanding. I cannot share more detail today.

Pietro Zollino: More localization would be one measure to increase our footprint there. I kindly ask for your understanding that I cannot share more detail today.

Speaker #3: There . But I can't kindly ask for your understand that I cannot share more detail today .

Speaker #19: Thank . .

[Analyst] (The New York Times): Thanks.

[Analyst 7]: Thanks.

Pietro Zollino: Okay. At least outlet wise of The Wall Street Journal, we stay in the US, even if you are not based there. Go ahead, please.

Speaker #2: Okay , so at least the wise if the Wall Street Journal we stay in the US . Stephen , even if you are not based there , go ahead , please .

Arno Antlitz: Okay. At least outlet-wise, if the world's with Germany, stay in the U.S., Steven, even if you are not based there. Go ahead, please.

Speaker #20: Can you hear me ?

[Analyst] (The Wall Street Journal): Can you hear me?

[Analyst 6]: Can you hear me?

Speaker #2: Yes. Very, very good. Loud and clear.

Pietro Zollino: Yes. Very, very good. Loud and clear.

Arno Antlitz: Yes, very, very good. Loud and clear.

Speaker #20: Great . Thank you . Okay , well , you've covered a lot of the points here . And I know you can't see any more on the potential Audi factory , but can you talk to me about the other options you have for reducing this 5 billion tariff bill ?

[Analyst] (The Wall Street Journal): Great. Thank you. Okay, well, you've covered a lot of the points here. I know you can't say any more on the potential Audi factory, but can you talk to me about the other options you have for reducing this EUR 5 billion tariff bill? Where are you at with price increases, for example? What about making more parts that you use in Mexico, USMCA compliant? Just if you could talk to me about the other levers you might be able to pull in order to reduce that tariff bill, that would be great. Just second question. On China, it sounds like most people seem to be of the view that the price competition isn't getting any easier there.

[Analyst 6]: Great. Thank you. You've covered a lot of the points here. I know you can't say any more on the potential Audi factory, but can you talk to me about the other options you have for reducing this $5 billion tariff bill? Where are you at with price increases, for example? What about making more parts that you use in Mexico USMCA compliant? If you could talk to me about the other levers you might be able to pull in order to reduce that tariff bill, that would be great. Just a second question. On China, it sounds like most people seem to be of the view that things aren't, the price competition isn't getting any easier there. Are you still optimistic that you can turn the business around in the way that you've laid out in your previous guidance? Thank you.

Speaker #20: Where are you at with price increases, for example? And what about making more parts that you use in Mexico? USMCA compliant?

Speaker #20: Just if you could talk to me about the other levers you might be able to pull in order to reduce that tariff bill.

Speaker #20: That would be great . And just a second question . On China , it sounds like most people seem to be of the view that things aren't the price .

Speaker #20: Competition isn't getting any easier . There . Are you still optimistic that you can turn the business around in the way that you've laid out in your in your previous guidance ?

[Analyst] (The Wall Street Journal): Are you still optimistic that you can turn the business around in the way that you've laid out in your previous guidance? Thank you.

Speaker #20: Thank you .

Speaker #3: Yeah . In terms of measures , you already I think you mentioned the the most important ones . First and foremost is more localization , bigger footprint in the US .

Pietro Zollino: Yeah. In terms of measures, you already, I think you mentioned the most important ones. First and foremost is more localization, bigger footprint in the U.S. We operate a factory there. Let's not forget that we work on the ramp-up of Scout, which is a very promising project. It's a project that's localized in South Carolina. It's in the middle of the most important American segment, pick up big, big rugged SUVs. We invest in the Scout. You talked about pricing. You talked about increasing the localization of parts in the U.S. This is exactly what we look at and what we work on to optimize the situation. Second, there is China. It's a very challenging pricing environment, although we see some, I would say, stabilization of the situation. It's still very challenging in terms of pricing.

Arno Antlitz: Yeah. In terms of measures, you already, I think you mentioned the most important ones. First and foremost is more localization, bigger footprint in the US. You know, we operate a factory there. Let's not forget that we work on the ramp-up of Scout, which is a very promising project. It's, it's a, it's a project that's localized in South Carolina. It's in the middle of the most important American segment, the pickup, the rugged SUVs. We invest in the Scout. You, you talked about pricing, you talked about increasing the localization of parts in the US. This is exactly what we look at and what we work on to optimize the situation.

Speaker #3: We operate a factory there . Let's not forget that we work on the ramp up of Scout , which is a very promising project .

Speaker #3: It's a it's a project that's that's localized in South Carolina . It's in the middle of the most important American segment , the pickup be rugged SUVs .

Speaker #3: So we invest in Scout . You talked about pricing . We talked about increasing the the localization of parts in in the US .

Speaker #3: This is exactly what what what what we look at and and what we work on to optimize the situation . And and second , there are China .

Arno Antlitz: Second, yeah, China, it's a very challenging pricing environment, although we see some, I would say, stabilization of the situation, but it's still very challenging in terms of pricing. What makes us confident in our strategy is that we bring a lot of great new cars now on new platforms, you know. Based on the new China Main Platform, we both significantly reduce the cost base, first and foremost, and second, the product substance increases with new software features. We bring LFP batteries. We bring in-car infotainment, state-of-the-art.

Speaker #3: It's a very challenging pricing environment . Although we see some I would say stabilization of of the situation . But it's still it's still very challenging in terms of pricing .

Speaker #3: Of what makes us confident in our strategy is that we bring a lot of a great new cars . Now , new platforms , no , based on the new China main platform , we we both significantly reduced the cost base .

Pietro Zollino: What makes us confident in our strategy is that we bring a lot of great new cars now on new platforms. Based on the new China main platform, we both significantly reduce the cost base, first and foremost. Second, the product substance increases with new software features. We bring LFP batteries. We bring the in-car infotainment, state-of-the-art. We are convinced that even in the current challenging pricing environment, we are much better off in terms of competitiveness with the new cars we bring in both our joint ventures, FAW-Volkswagen and SAIC-Volkswagen, and also at Anhui. The cars were presented in Shanghai, also with Audi. I would say the best news in that challenging pricing environment is that we bring very attractive cars on a very good cost base to compete.

Speaker #3: First and foremost . And second , the the product substance increases with new software features . We bring LFP batteries , we bring in infotainment , state of the art , and we are convinced that even in the current challenging pricing environment , we are much better off in terms of competitiveness with the new cars we bring in .

Arno Antlitz: We are convinced that even in the current challenging pricing environment, we are much better off in terms of competitiveness with the new cars we bring in both our joint ventures, FAW and SAIC and also at Anhui. The cars were presented in Shanghai, also Audi. I would say the best news in that challenging pricing one was that we bring very attractive cars on a very good cost base to compete.

Speaker #3: Both our joint ventures five and six , and also at Anhui and the cars were presented in Shanghai also , Audi and I would say the the , the best news in that challenging pricing .

Speaker #3: One is that we bring very attractive and cars on a on a very good cost base to compete .

Speaker #2: Yes . Sorry .

Arno Antlitz: Arno, can I just say on price increases, I appreciate you're working on that, but Porsche has made clear that it's increasing prices. What about the other brands? Do you see potential to increase prices to cover the tariff costs? Are you more cautious on the other brands? What's the overall picture?

[Analyst] (The Wall Street Journal): Yeah.

Arno Antlitz: Go ahead.

Speaker #20: Can I just say about price increases? I appreciate you're working on that, but Porsche has made it clear that it's increasing prices.

[Analyst] (The Wall Street Journal): Can I just say on price increases, I appreciate you're working on that. Porsche has made clear that it's increasing prices. What about the other brands? Do you see potential to increase prices to cover the tariff costs, or are you more cautious on the other brands? What's the overall picture?

Speaker #20: What about the other brands ? Is is it do you see potential to increase prices to cover the tariff costs ? Or are you more cautious on the other brands ?

Speaker #20: What's the overall picture ?

Speaker #3: Yeah , but look , for certain reasons I cannot talk publicly about planned price increase . This is very clear . What I can say .

Arno Antlitz: Yeah, look, for certain reasons I cannot talk publicly about planned price increase, and this is very clear. What I can say, it's a principle, a major lever, we look into that. This is what I can say.

Pietro Zollino: Yeah. For certain reasons, I cannot talk publicly about planned price increase. This is very clear. What I can say, it's a principal, a major lever, and we look into that. This is what I can say.

Speaker #3: It's a principle, a major lever. And we look into that. This is what I can say.

Speaker #20: Okay . Thank you .

[Analyst] (The Wall Street Journal): Okay. Thank you.

Arno Antlitz: Okay. Thank you. Arno talked a lot about products that I think a thorough red car magazine fits perfectly in here. I can see Auto Car. Will, are you on the line? I think he can't hear us.

Speaker #2: Yes, I know I talked a lot about products, and I think Thoroughbred Car Magazine fits perfectly in here. I can see Autocar; will I on the line?

Pietro Zollino: Yes. Arno talked a lot about products that I think for a car magazine fits perfectly in here. I can see Autocar. Will, are you on the line? I think he can't hear us.

Speaker #2: I think he can't hear us.

Speaker #21: Can you hear me ?

[Analyst] (Autocar): Can you hear me?

[Analyst 8]: Can you hear me?

Speaker #2: Oh, now I can hear you. Yes.

Arno Antlitz: Oh, now I can hear you. Yes.

Pietro Zollino: Oh, now I can hear you. Yes. Go ahead.

Speaker #21: Go ahead . Thank you . Good morning . Hello . I wonder if you're able to shed any light for me on the talks between Porsche and .

[Analyst 8]: Yes.

Arno Antlitz: Go ahead.

[Analyst] (Autocar): Thank you.

[Analyst 8]: Thank you.

Arno Antlitz: Good morning.

Pietro Zollino: Good morning to the UK.

[Analyst 8]: Welcome to the U.K.

[Analyst] (Autocar): Good morning. Hello, Arno. I wonder if you're able to shed any light for me on the talks between Porsche and Mate Rimac about selling Porsche stake in Bugatti Rimac and what it could mean for the wider Volkswagen Group, please.

Arno Antlitz: Good morning. Hello, Arno. I wonder if you're able to shed any light for me on the talks between Porsche and Matti Rimac about selling Porsche stake in Bugatti Rimac and what it could mean for the wider Volkswagen Group, please.

Speaker #21: And Mattia Rimac about selling Porsche's stake in Bugatti, Rimac, and what it could mean for the wider Volkswagen Group.

Speaker #3: Unfortunately , I don't want to disappoint you , but unfortunately , I must say I cannot comment on on these speculations . Sorry .

Arno Antlitz: Unfortunately, I don't want to disappoint you, but, unfortunately, I must say I cannot comment on these speculations. Sorry for that.

Pietro Zollino: Unfortunately, I don't want to disappoint you, but unfortunately, I must say I cannot comment on these speculations. Sorry for that.

Speaker #3: Sorry for that .

Speaker #21: I expected that answer. That's absolutely fine. Thank you.

[Analyst] (Autocar): I expected that answer. That's absolutely fine. Thank you.

Arno Antlitz: I expected that answer. That's absolutely fine. Thank you.

Speaker #3: Okay , thanks .

Arno Antlitz: Okay. Thanks.

Pietro Zollino: Okay. Thanks.

Speaker #2: Okay . I think that that brings us to the end of this Q&A . Thank you for participating . Thank you for your excellent questions .

Pietro Zollino: Okay, I think that brings us to the end of this Q&A. Thank you for participating. Thank you for your excellent questions. Yeah, I can only wish you have a great day and stay safe and talk to you soon. Bye.

Arno Antlitz: Okay. I think that brings us to the end of this Q&A. Thank you for participating. Thank you for your excellent questions. I can only wish you have a great day and stay safe. Talk to you soon. Bye.

Speaker #2: Yeah , I can only wish you have a great day and stay safe and talk to you soon . Bye .

Speaker #1: Ladies and gentlemen , the conference is now over . Thank you for choosing and thank you for participating in the conference . You may now disconnect your lines .

Operator: Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call. Thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Rolf Woller: Ladies and gentlemen, the conference is now over. Thank you for choosing CORUSCOL, and thank you for participating in the conference. You may now disconnect your lines.

Pietro Zollino: Thanks.

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