Shares and Bonds

During the reporting period, Volkswagen AG’s ordinary and preferred shares followed the negative trend on the stock markets, where some automotive stocks dropped at above-average rates.

EQUITY MARKETS AND PERFORMANCE OF THE PRICE OF VOLKSWAGEN’S SHARES

The trend in the international stock markets in fiscal year 2022 was initially overshadowed by investors’ concerns about possible interest rate hikes in the face of rising inflation rates and about the spread of the Omicron variant of the SARS-CoV-2 virus. Following the outbreak of the Russia-Ukraine conflict in February 2022, the imposing of sanctions against Russia and the rise in commodity and energy prices that drove up inflation, the international stock markets came under pressure. In addition, the tight restrictions under the zero-Covid strategy being pursued in China placed further strain on international supply chains. The downward trend in stock prices intensified in the further course of the reporting period due to the continuing confrontations in Ukraine, increasing concerns about a sufficient supply of energy, rising material costs, persistently high inflation and the resulting tighter monetary policy of the central banks.

The German stock market index (DAX) began the year marginally up on its previous record achieved in November 2021. After that, apprehension about the tightening of monetary policy in the USA dominated investor sentiment. The Russia-Ukraine conflict and the fears this triggered of an energy crisis and its economic fallout provoked uncertainty among market participants and strained the capital market. In view of high inflation, the European Central Bank initiated an interest rate turnaround that, combined with fears of recession, resulted in a further fall in the DAX. Stock prices rose significantly in the fourth quarter; however, the DAX ended 2022 12% below the previous year’s level, primarily under the impact of the high coronavirus infection rates in China.

Volkswagen AG’s preferred and ordinary shares followed the trend on the stock markets, where cyclical automotive stocks dropped at above-average rates in some cases. With the announcement of the IPO of Porsche AG, Volkswagen’s shares managed to temporarily detach themselves from the general trend. Although the good operating results were received positively by the market, the 2022 year-end closing price – after correcting for the special dividend of €19.06 per share – was down 34% for the preferred share and 43% for the ordinary share compared with the prior year figure.

PRICE DEVELOPMENT FROM DECEMBER 2021 TO DECEMBER 2022

Index based on m onth-end prices: December 31, 2021 = 100

EXTRAORDINARY GENERAL MEETING

On December 16, 2022, an Extraordinary General Meeting of Volkswagen AG took place in the CityCube Berlin. The meeting was held in connection with the IPO of Dr. Ing. h.c. F. Porsche AG, where 25% of Porsche AG’s preferred shares were placed on the capital market. At the same time, Porsche SE indirectly acquired 25% of the ordinary shares in Porsche AG plus one ordinary share from Volkswagen AG. To enable its shareholders to participate in the success of the entire transaction, Volkswagen AG proposed to the Extraordinary General Meeting an amendment to the resolution on the appropriation of earnings already adopted by the Annual General Meeting on May 12, 2022. The aim of this was to pay a special dividend to ordinary and preferred shareholders of Volkswagen AG for fiscal year 2021 in addition to the dividends already paid to shareholders in May 2022 of €7.50 per dividend-bearing ordinary share and €7.56 per dividend-bearing preferred share.

94.02% of the ordinary share capital was present at the Extraordinary General Meeting. With a majority of 99.9974% of the votes cast, the shareholders approved the payment of a special dividend of €19.06 per dividend-bearing ordinary share and dividend-bearing preferred share. The special dividend was paid on January 9, 2023.