Volkswagen Pref (VOW3 GR/VOW GR): Prefs/Ords: Buy/Buy – improving, but more to come

Research evidence excerpt

Volkswagen Pref (VOW3 GR/VOW GR): Prefs/Ords: Buy/Buy – improving, but more to come

ivian equity (milestone-based payment),

FINANCIALS AND RATIOS (EUR)

partially offset by Sinotruk stake disposal at Traton. Inventory increased due to Urban Car Year to 12/2025a 12/2026e 12/2027e 12/2028e

family ramp-up. China JV dividend materially below prior-year level. Company expects Auto HSBC EPS 13.35 17.01 23.51 30.00

HSBC EPS (prev) 13.35 18.34 24.32 29.51

NCF to be slightly positive even after Rivian investment. Change (%) 0.0 -7.3 -3.3 1.7

Consensus EPS 11.47 18.94 23.51 27.37

Other comments: Everllence – EUR7.4bn proceeds are a good proxy for the cash inflow, Source: LSEG IBES, HSBC estimates

improvement to net industrial liquidity; not booked in Q2.

Future Plan – Supervisory board approval not required for plant closures; only required for Michael Tyndall*, CFA Senior Global Autos Analyst

relocating capacity. However, headcount reduction requires Works Council agreement. HSBC Bank plc

michael.tyndall@hsbc.com

Retain Buys ratings on VW Ords and Prefs; increase TPs to EUR133 (from EUR132). +44 20 3359 6301

Our SOTP-based valuation approach results in TPs for the Prefs and Ords that imply c86% Pushkar Tendolkar*

Global Autos Analyst

and c82% upside, respectively; hence, we maintain Buy ratings on both share classes. HSBC Securities and Capital Markets (India) Private

Limited

pushkarnarendratendolkar@hsbc.co.in

VW – HSBCe vs consensus +91 80 4555 2752

EURm unless stated ___________ 2Q26 ____________ ______ Prior comps _______

HSBCe Cons Var 2Q25 1Q26 * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Group revenue 81,048 81,088 0.0% 80,806 75,657 not registered/ qualified pursuant to FINRA regulations