Volkswagen Financial Services AG continues on its path of success in 2006

Portfolio increases to 4.57 million contracts /
19.3 percent more new contracts than the year before /
pre-tax result rises to 705 million euros

Volkswagen Financial Services AG has further continued on its growth course in the business year just ended. The total assets of Europe's largest provider of automobile-related financial services went up 10.5 percent to 43.93 billion euros. The pre-tax result increased by 1.3 percent to 705 million euros. The total number of current contracts grew by 8.6 percent to over 4.57 million. The number of new contracts was increased by 19.3 percent to 1.79 million. "During the past business year we were able to record a pleasingly high growth in volume throughout all our business divisions," the Chairman of the Management Board of Volkswagen Financial Services AG, Burkhard Breiing, stressed at the Annual Press Conference in Frankfurt.

12.8 percent more new contracts in the financing domain

The receivables from retail financing grew by 11.1 percent in 2006 to reach 17.3 billion euros. The financing portfolio increased by 3.7 percent to 1.9 million contracts. The number of new contracts
amounted to 766,000, representing a plus of 12.8 percent.

In the field of wholesale (dealer) financing, the credit volume increased by 5.7 percent to just under seven billion euros.

11.7 percent more contracts in the leasing domain

The receivables from the leasing business rose by 7.8 percent in 2006 to 12.8 billion euros. The portfolio reached 859,000 contracts by the end of the year, a growth of 8.9 percent. The number of
corporate customer contracts in this figure was up four percent to 243,300. The new contracts concluded with corporate customers rose 1.8 percent to 92,700. Altogether, the leasing domain recorded 334,000 new contracts during the last business year, a plus of 11.7 percent.

31.7 percent more new contracts in the insurance domain

The number of insurance and service contracts grew by 13.8 percent to 1.8 million. A plus of 31.7 percent to 690,000 contracts was recorded among the new contracts.

Direct bank: volume of deposits rises to 8.8 billion euros

The volume of deposits maintained by the direct banking customers expanded by 1.1 percent during the last business year to reach a total of 8.8 billion euros. The number of the direct bank customers went up 3.9 percent to 641,000.

The number of employees showed an increase of 1.1 percent in 2006 to a total of 5,022. In Germany the number of employees remained at the previous year's level with a figure of 3,602.

Most successful product launch since the company's foundation

With the mobility package FairP(l)ay, the Volkswagen financial services providers registered the most successful product introduction in the spring of 2006 since the company's foundation. The subsequent all-inclusive packages have followed on seamlessly from the success of their predecessor. The current offer is an anniversary package celebrating the sale of the 25 millionth VW Golf.

Thanks to the great market acceptance enjoyed by these mobility packages, the number of new leasing and financing contracts concluded for new vehicles in Germany was increased by 58 percent
to 207,000. The market penetration rate increased from 52 to 71percent in the process. Alone the number of customers who have decided to take out motor insurance and guarantee extensions
within the scope of the special promotion offers has risen by 271 percent over the previous year. This resulted in 151,000 new contracts. "Such growth can only be achieved when one precisely
hits the mark regarding the customer’s needs – which we have evidently succeeded in doing," Breiing concluded.