Shares and Bonds

During the reporting period trading in Volkswagen AG’s ordinary and preferred shares continued to recover from the sharp fall in share prices in 2020. The price of our ordinary shares, in particular, was higher at the end of 2021 than before the pandemic.

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

The recovery on the international stock markets, which began over the course of 2020, after the sharp falls in share prices triggered by the Covid-19 pandemic, continued to be strong for the most part of fiscal year 2021. Optimism was widespread, despite fears of setbacks in tackling the pandemic and of the resulting prolongation of restrictions to public life and the corresponding impact on economic growth.

The DAX recorded an increase of 15.8 % compared with the end of 2020. Germany’s benchmark index remained largely unperturbed by the continuing spread of the SARS-CoV-2 virus, although the dynamic pace of increase in the second quarter transitioned into sideways movement and then started a year-end rally, which was, however, overshadowed by renewed increases in infection rates. The main drivers of this positive development were the progress made in the vaccination campaigns and the continued economic stimulus by central banks and governments all around the world, as well as an emerging recovery in the global economy. Support also came from gains in automotive stocks. In contrast, the concerns of market participants regarding rising inflation had a negative impact, as did lack of parts availability due to supply bottlenecks.

Volkswagen AG’s preferred and ordinary shares recovered from the loss in value caused by the pandemic. Their prices were up by 16 % and 52 % respectively compared to the end of 2020. As a result, their value was higher than before the Covid-19 pandemic, with the ordinary shares performing especially positively. The encouraging performance of Volkswagen shares was based firstly on the good business performance in the reporting year, especially in the first six months. Secondly, the new Group strategy NEW AUTO, including the Group’s plans to accelerate the expansion of e-mobility and the associated battery technology, was well received by investors. The continued strained situation relating to the supply of semiconductors had a negative impact.

PRICE DEVELOPMENT FROM DECEMBER 2020 TO DECEMBER 2021

Index based on month-end prices: December 31, 2020 = 100