moving

progress
2014
nnu

e o t

ig
OL S

AG E N G R O U P

Volume data 1

Vehicle sales (units)

10,217,003

9,728,250

Production (units)

10,212,562

9,727,848

5.0

592,586

572,800

3.5

2.8

Employees at Dec. 31
Financial data (IFRSs),

5.0

million

Sales revenue

202,458

197,007

Operating profit

12,697

11,671

8.8

Profit before tax

14,794

12,428

19.0

Profit after tax

11,068

9,145

21.0

Profit attributable to Volkswagen AG shareholders

10,847

9,066

19.6

Cash flows from operating activities

10,784

12,595

14.4

Cash flows from investing activities attributable to operating activities

16,452

14,936

10.2

EBITDA 3

23,100

20,594

12.2

Cash flows from operating activities

21,593

20,612

4.8

Cash flows from investing activities attributable to operating activities 4

15,476

16,199

4.5

11,495

11,040

4.1

6.5

6.3

4,601

4,021

2.6

2.3

Automotive Division 2

of which: capex
as a percentage of sales revenue
capitalized development costs
as a percentage of sales revenue
Net cash flow
Net liquidity at Dec. 31

14.4

6,117

4,413

38.6

17,639

16,869

4.6

Return ratios in

Return on sales before tax

7.3

6.3

Return on investment (ROl) in the Automotive Division

14.9

14.5

Return on equity before tax (Financial Services Division) 5

12.5

14.3

Volume data including the unconsolidated Chinese joint ventures.

Including allocation of consolidation adjustments between the Automotive and
Financial Services divisions.
3 Operating profit plus net depreciation/amortization and impairment
losses/reversals of impairment losses on property, plant and equipment,
1
2

OL S

capitalized development costs, lease assets, goodwill and financial assets as

reported in the cash flow statement.
4 Excluding acquisition and disposal of equity investments:
15,719 million ( 14,497 million).
5 Profit before tax as a percentage of average equity.

AG E N AG

Volume data

Vehicle sales (units)

2,615,686

2,495,745

4.8

Production (units)

1,230,891

1,169,151

5.3

112,561

107,559

4.7

68,971

65,587

5.2

2,476

3,078

19.6

per ordinary share

4.80

4.00

per preferred share

4.86

4.06

Employees at Dec. 31
Financial data (HGB),

million

Sales
Net income for the year
Dividends ( )

This version of the annual report is a translation of the German original. The German takes precedence.

M o v in g G lo b a lly

Key Figures
Moving
Globally

VO L K S WAG E N G R O U P D E L I V E R I E S I N T H O U S A N D U N I T S

NORTH A MERIC A
2012
2013
2014

+ 0.2%

843
891
893

EUROPE/OTHER M ARKETS
2012
2013
2014

4,170
4,201
4,392

SOUTH A MERIC A
2012
2013
2014

1,082
992
795

+ 4.5%

A SIA- PACIFIC

19.9%

2012
2013
2014

3,181
3,647
4,058

+ 11.3%

Key Figures
Moving
Globally

12

on

mov

Twelve brands
with an individual identity
and a common goal:
mobility. For everyone, all
over the world.

Volkswagen is Das Auto. The brand

delivers innovative, responsible mobility
to people worldwide.

Passat

Volkswagen Passat fuel consumption in l/100 km combined from 1.6 to 5.4; CO 2 emissions in g/km combined from 37 to 140 (including values from Volkswagen Passat GTE).

Audi is Vorsprung durch Technik. Lightweight construction,

efficient drivetrains, connectivity and innovative
assistance systems Audi clothes its progressive technologies
in clear lines and sporty design.

TTS Coup

Audi TTS Coup fuel consumption in l/100 km combined 7.1; CO 2 emissions in g/km combined 164.

Leon X-PERIENCE

SEAT Leon X-PERIENCE fuel consumption in l/100 km combined from 4.7 to 6.5; CO 2 emissions in g/km combined from 122 to 150.

SEAT combines temperament and precision.

The Spanish brands vehicles radiate sheer enjoyment

and impress with their technological perfection.

Clever solutions for everyday car journeys that is

KODA s aspiration. The traditional Czech
brand combines functionality and everyday practicality
with high quality and timeless design.

Octavia Scout

KODA Octavia Scout fuel consumption in l/100 km combined from 3.2 to 6.9; gas in kg/100 km combined 3.5; CO 2 emissions in g/km combined from 85 to 158.

Individual luxury, handcrafted perfection and

powerful performance the Bentley experience, every time.
Built in Crewe and driven across the world.

Mulsanne Speed

Bentley Mulsanne Speed fuel consumption in l/100 km combined 14.6; CO 2 emissions in g/km combined 342.

Bugatti is more than just a brand Bugatti is

a legend. Its super sports cars epitomize its quest for
the perfect synthesis of art and technology.

Veyron 16.4
Grand Sport Vitesse

Bugatti Veyron 16.4 Grand Sport Vitesse fuel consumption in l/100 km combined 23.1; CO 2 emissions in g/km combined 539.

Huracn
LP 610-4

Lamborghini Huracn LP 610-4 fuel consumption in l/100 km combined 12.5; CO 2 emissions in g/km combined 290.

An uncompromisingly sporty identity, extreme design,

ultimate performance Lamborghini
continually rewrites automotive history with super
sports cars such as the new Huracn.

911 Carrera 4
GTS Cabriolet

Porsche 911 Carrera 4 GTS Cabriolet fuel consumption in l/100 km combined from 9.2 to 10.0; CO 2 emissions in g/km combined from 214 to 235.

Porsches mission is to build sports cars that

go full throttle on the circuit but also hold their own on
everyday journeys. German engineering
brilliance creates the most efficient sports cars in the world.

A brand whose reputation rests on legendary

racing triumphs. The Ducati name stands
for motorcycles in a class of their own, with optimal
performance, state-of-the-art technology
and exciting design.

Superleggera

Volkswagen Commercial Vehicles from the California

camper van to the Caddy urban delivery van
and the Crafter delivery van the brands light commercial
vehicles offer highly flexible and cost-effective
performance for everyday driving.

California

Volkswagen California fuel consumption in l/100 km combined from 7.0 to 10.5; CO 2 emissions in g/km combined from 184 to 245.

Citywide LE
hybrid bus

Scania trucks, buses and engines offer maximum

efficiency and absolute reliability. The premium
brand in the commercial vehicle segment stands for
high cost effectiveness and comprehensive service.

Technological expertise in transportation and energy is a

characteristic of all MAN products, from trucks
to buses, from large-bore engines to turbomachinery.

TGX D38

Volkswagen Financial Services offers

tailor-made products and services spanning all vehicle
segments and representing the key to
mobility for many of the Groups customers worldwide.

CO N T E N T S

C o n te n ts

1 2 3
S T R AT E G Y

DIVISIONS

G R O U P M A N AG E M E N T R E P O R T

07

Report of the Supervisory Board

21

Brands and Business Fields

49

Goals and Strategies

12

Letter to our Shareholders

24

Volkswagen Passenger Cars

50

16

The Board of Management of

Volkswagen Aktiengesellschaft

26

Audi

Internal Management System and Key

Performance Indicators

28

KODA

52

Structure and Business Activities

30

SEAT

54

Corporate Governance Report

32

Bentley

59

Remuneration Report

34

Porsche

70

Executive Bodies

36

Volkswagen Commercial Vehicles

74

38

Scania

Disclosures Required Under

Takeover Law
Business Development

40

MA N

76

42

Volkswagen Group China

90

Shares and Bonds

44

Volkswagen Financial Services

99

Results of Operations,
Financial Position and Net Assets

114 Volkswagen AG (condensed, in accordance

with the German Commercial Code)

118 Sustainable Value Enhancement
152 Report on Expected Developments
160 Report on Risks and Opportunities
174 Prospects for 2015

CO N T E N T S

4 5

CO N S O L I DAT E D F I N A N C I A L S TAT E M E N T S

A D D I T I O N A L I N F O R M AT I O N

179 Income Statement

306 Glossary

180 Statement of Comprehensive Income

307 Index

182 Balance Sheet

309 Contact Information

184 Statement of Changes in Equity

310 Scheduled Dates

186 Cash Flow Statement

187 Notes
303 Responsibility Statement
304 Auditors Report

This annual report was published on the occasion

of the Annual Media Conference on March 12, 2015.

Our pursuit of innovation and perfection

and our responsible approach will help to
make us the worlds leading automaker by
2018 both economically and ecologically.
P R O F. D R . M A R T I N W I N T E R KO R N , C H A I R M A N O F T H E B OA R D O F M A N AG E M E N T O F VO L K SWAG E N A K T I E N G E S E L L S C H A F T

Report of the Supervisory Board

S T R AT E G Y

Letter to our Shareholders

The Board of Management of
Volkswagen Aktiengesellschaft

o o
vi o
IN ACCORDANCE

ITH SECTION

o
O

THE A TG

Ladies and Gentlemen,

In fiscal year 2014, the Supervisory Board of Volkswagen AG addressed the Companys position and development regularly and in detail. In compliance with the recommendations and suggestions of the German Corporate Governance
Code and the legal requirements, we supported the Board of Management in its running of the business and advised it
on issues relating to the management of the Company. The Supervisory Board was directly involved in all decisions of
fundamental importance to the Group. In addition, we discussed current strategic considerations with the Board of
Management at regular intervals.
The Board of Management regularly, promptly and comprehensively informed the Supervisory Board in writing or
orally on the development of the business and the Companys planning and position, including the risk situation and
risk management. In addition, the Board of Management reported to the Supervisory Board on an ongoing basis on
compliance-related topics and other topical issues. In all cases we received the documents relevant to our decisions in
good time for our meetings. We also received a detailed monthly report from the Board of Management on the current
business position and the forecast for the current year. Any variances in performance as against the plans and targets
previously drawn up were explained by the Board of Management in detail, either orally or in writing. We analyzed the
reasons for the variances together with the Board of Management so as to enable countermeasures to be derived.
The Chairman of the Supervisory Board consulted with the Chairman of the Board of Management at regular intervals
between meetings, among other things about the Volkswagen Groups strategy and planning, the development of the
business, the Groups risk situation and risk management, and compliance issues.
The Supervisory Board held a total of six meetings in fiscal year 2014. The average attendance ratio was 97.5 ;
no member of the Supervisory Board took part in fewer than half of the meetings. In addition, resolutions on urgent
matters were adopted in writing or using electronic communications media.
CO

I T T E E AC T I I T I E S

The Supervisory Board has established a total of four committees in order to perform the duties entrusted to it: the
Executive Committee, the Nomination Committee, the Mediation Committee in accordance with section 27(3) of the
Mitbestimmungsgesetz (MitbestG German Codetermination Act) and the Audit Committee. The Executive Committee
consists of three shareholder representatives and three employee representatives. The members of the Nomination

S T R AT E G Y

Report of the upervisory Board

Committee are the shareholder representatives on the Executive Committee; the remaining two committees are each
composed of two shareholder representatives and two employee representatives. The members of the committees as of
December 31, 2014 are given on page 73 of this annual report.
The Executive Committee met seven times during the past fiscal year. These meetings primarily served to prepare in
detail the resolutions by the Supervisory Board and to deal with contractual issues concerning the Board of Management other than remuneration.
The Nomination Committee is responsible for proposing suitable candidates for the Supervisory Board to recommend
for election to the Annual General Meeting. The Committee met once during 2014.
The Mediation Committee did not have to be convened in the reporting period.
The Audit Committee held four meetings in fiscal year 2014. It focused primarily on the consolidated financial statements, risk management (including the internal control system), and the work performed by the Companys compliance
organization. In addition, the Audit Committee addressed the Groups quarterly reports and the half-yearly financial
report as well as current financial reporting issues and their examination by the auditors.
Furthermore, the shareholder and employee representatives generally met for separate preliminary discussions before
each of the Supervisory Board meetings.
T O P I C S D I S C U S S E D B Y T H E S U P E R I S O RY B OA R D

At the Supervisory Board meeting on February 21, 2014, following a detailed examination we approved the consolidated
financial statements and the annual financial statements of Volkswagen AG for 2013 prepared by the Board of Management, as well as the combined management report. We also examined the dependent company report submitted by
the Board of Management and came to the conclusion that there were no objections to be raised to the concluding
declaration by the Board of Management in the report. In connection with the creation of the integrated commercial
vehicles group, we approved the Board of Managements plans to make a voluntary tender offer to Scania ABs shareholders for all Scania shares outstanding, we authorized the capitalization measures to part-fund this transaction, and
we appointed Mr. Andreas Renschler as member of the Board of Management of Volkswagen AG with responsibility
for Commercial Vehicles, effective February 1, 2015. The agenda also covered the remuneration of Board of
Management members in particular their variable remuneration and strategic financing measures within the
Volkswagen Group.
A total of three Supervisory Board meetings took place on May 12 and 13, 2014 as part of Volkswagen AGs 2014 Annual
General Meeting. These meetings focused on preparation for and post-completion analysis of the 54th Annual General
Meeting and the 12th Special Meeting of Preferred Shareholders of Volkswagen AG on May 13, 2014. In addition, the
Board of Management updated us on the status of the voluntary tender offer to Scania ABs shareholders to purchase all
outstanding Scania shares and the extension of the acceptance period. We also renewed three Board of Management
members contracts and noted the Board of Managements plans for new production locations in China.

S T R AT E G Y

Report of the upervisory Board

We mainly dealt with strategic issues at the Supervisory Board meeting on September 19, 2014. We approved the Board
of Managements plans to establish two further production sites in China, among other things.
At the Supervisory Board meeting on November 21, 2014 we discussed in detail the Volkswagen Groups investment and
financial planning for the period from 2015 to 2019. In addition, the meeting focused in particular on issuing the annual
declaration of conformity with the German Corporate Governance Code.
Among other things, we decided on the location for the production site to manufacture the replacement for the Crafter,
the production of a SU V for the North American market, Dr. Michael Machts further activity as a member of the Board
of Management, and the appointment of Dr. Herbert Diess as member of the Board of Management responsible for the
newly established function as Chairman of the brand board of management of Volkswagen Passenger Cars, effective
October 1, 2015, in resolutions that were adopted by circulating written documents in March, June, July and December
2014.
CO N L I C T S O

INTEREST

The Chairman of the Supervisory Board of Volkswagen AG, who is also a member of the Supervisory Board of Scania AB
and Chairman of the Supervisory Board of MA N SE, participated in the resolution dated February 21, 2014 that voted to
make the voluntary tender offer for all Scania shares outstanding and to implement the capitalization measures to fund
this transaction.
Member of the Supervisory Board of Volkswagen AG Ms. Annika Falkengren, who is also President and CEO of
Skandinaviska Enskilda Banken AB, Sweden, abstained from voting on the above resolution relating to the Scania
tender offer on February 21, 2014.
At its meeting on November 20, 2014, the Executive Committee of the Supervisory Board addressed major shareholder
business relationships. In this context, the Executive Committee granted individual approvals to transactions with
the State of Lower Saxony. Executive Committee member Mr. Stephan Weil is Minister-President of the State of Lower
Saxony and took part in the votes. The Executive Committee members were guided exclusively by the interests of the
Company when voting. No material conflicts of interest were discernible in this respect. All approvals were granted
unanimously.
No other discernible conflicts of interest were reported or arose in the reporting period.
CO R P O R AT E G O E R N A N C E A N D D E C L A R AT I O N O

CO N O R

ITY

The Supervisory Board meeting on November 21, 2014 addressed the application of the German Corporate Governance
Code at the Volkswagen Group. We discussed in detail the version of the German Corporate Governance Code dated
June 24, 2014, as published by the relevant government commission on September 30, 2014, and issued the annual
declaration of conformity with the recommendations of the German Corporate Governance Code in accordance with
section 161 of the AktG together with the Board of Management.

S T R AT E G Y

Report of the upervisory Board

The joint declarations of conformity by the Board of Management and the Supervisory Board are permanently available
on the Volkswagen AG website at www.volkswagenag.com ir. Additional information on the implementation of the
recommendations and suggestions of the German Corporate Governance Code can be found in the corporate governance report starting on page 54 and in the notes to the consolidated financial statements on page 301 of this annual
report.
E

BERS O

T H E S U P E R I S O RY B OA R D A N D B OA R D O

A N AG E

ENT

The scheduled terms of office of Dr. Hans Michel Pi ch and Dr. Ferdinand Oliver Porsche as members of Volkswagen
AGs Supervisory Board expired at the end of the 53rd Annual General Meeting on May 13, 2014. The Annual General
Meeting elected them both to the Supervisory Board for a further full term of office. In addition, Mr. Ahmad Al-Sayed,
who was previously appointed to the Supervisory Board by the court for the period up to the Annual General Meeting on
May 13, 2014, was elected to the Supervisory Board for a full term of office.
As of August 1, 2014 Dr. Michael Macht stepped down from his position as member of the Board of Management with
responsibility for Production.
Mr. Andreas Renschler has been responsible for Commercial Vehicles since February 1, 2015. Dr. Leif stling, who was
previously responsible for Commercial Vehicles, stepped down from the Board of Management effective February 28,
2015.
AU D I T O

T H E A N N UA L A N D CO N S O L I DAT E D I N A N C I A L S TAT E

ENTS

The Annual General Meeting on May 13, 2014 elected PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungsgesellschaft as auditors for fiscal year 2014, in line with our proposal. The auditors audited the annual financial
statements of Volkswagen AG, the consolidated financial statements of the Volkswagen Group and the combined
management report, and issued unqualified audit reports on all of these documents. In addition, they analyzed the risk
management and internal control systems, concluding that the Board of Management had taken the measures required
by section 91(2) of the AktG to ensure early detection of any risks endangering the continued existence of the Company.
The Report by Volkswagen AG on Relationships with Affiliated Companies in Accordance with Section 312 of the AktG
for the period from January 1 to December 31, 2014 (dependent company report) submitted by the Board of Management
was also audited by the auditors, who issued the following opinion: In our opinion and in accordance with our statutory
audit, we certify that the factual disclosures provided in the report are correct and that the Companys consideration
concerning legal transactions referred to in the report was not unduly high.
The members of the Audit Committee and the members of the Supervisory Board were provided in each case with the
documentation relating to the annual financial statements, including the dependent company report, and the audit
reports prepared by the auditors in good time for their meetings on February 26, 2015 and February 27, 2015 respectively. The auditors reported extensively at both meetings on the material findings of their audit and were available to
provide additional information.

S T R AT E G Y

Report of the upervisory Board

Taking into consideration the audit reports and the discussion with the auditors and based on its own conclusions, the
Audit Committee prepared the documents for the Supervisory Boards examination of the consolidated financial statements, the annual financial statements of Volkswagen AG, the combined management report and the dependent company report and reported on these at the Supervisory Board meeting on February 27, 2015. Following this, the Audit
Committee recommended that the Supervisory Board approve the annual financial statements. We examined the documents in depth in the knowledge and on the basis of the report by the Audit Committee and the audit report as well as in
talks and discussions with the auditors. We came to the conclusion that they are due and proper and that the assessment
of the position of the Company and the Group presented by the Board of Management in the management report corresponds to the assessment by the Supervisory Board. We therefore concurred with the auditors findings and approved
the annual financial statements prepared by the Board of Management and the consolidated financial statements at our
meeting on February 27, 2015, at which the auditors also took part in discussions on the agenda items relating to the
financial statements. The annual financial statements are thus adopted. Our examination of the dependent company
report did not result in any objections to the concluding declaration by the Board of Management in the dependent
company report. We reviewed the proposal on the appropriation of net profit submitted by the Board of Management, taking
into account in particular the interests of the Company and its shareholders, and endorsed the proposal.
Our thanks and appreciation are owed to the members of the Board of Management, the Works Council, the management and all the employees of Volkswagen AG and its affiliated companies for their work in 2014. Their collective high
level of personal commitment helped the Volkswagen Group to record a strong performance in the ongoing challenging
market conditions and to continue pursuing the goals set out in its Strategy 2018 with confidence.

Wolfsburg, February 27, 2015

Prof. Dr. Ferdinand K. Pi ch

Chairman of the Supervisory Board

oo
o

2014 was an unexpectedly difficult but ultimately good year for the Volkswagen Group. Political and economic uncertainty dominated the situation in many regions of the world, and this also had far-reaching consequences for the automotive industry. Despite these headwinds, we successfully kept your Company on a strong, stable trajectory.
This is underscored by the fact that we reached a major strategic milestone over 10 million deliveries four years
earlier than expected. This is underscored by record sales revenue of 202.5 billion and operating profit of 12.7 billion.
And this is underscored by the increase in the operating margin to 6.3 at the upper end of the forecast range. At
14.8 billion, we also lifted profit before tax year-on-year. We again posted a record equity-accounted profit from our
Chinese joint ventures.
As you can see, Volkswagen keeps its word and achieves its goals. We stand for strength, reliability and long-term
success even under less favorable conditions. Of course, this must also benefit you, as our shareholders, which is why
the Board of Management and Supervisory Board will propose to the Annual General Meeting a significantly higher
dividend of 4.80 per ordinary share and 4.86 per preferred share.
The Volkswagen Group also grew qualitatively in many ways, above and beyond its financial key performance indicators. We not only won over but also thrilled customers with vehicles such as the new Audi TT, the Porsche Macan and the
Volkswagen Passat, the KODA Fabia and the growing SEAT Leon family. We now offer the widest range of electric vehicles
and plug-in hybrids on the basis of our toolkits which we are rolling out around the world. In addition, we have
paved the way to rapidly expand our position in commercial vehicles with the full integration of Scania. Things are also

S T R AT E G Y

Letter to our hareholders

n
n

n o
ng
i ii
ong m
v n
vo
on i ion
ARTIN

INTER ORN

S T R AT E G Y

Letter to our hareholders

moving forward in key markets: we strengthened our presence in China by extending our cooperation with FAW
by 25 years and opening a new plant in Tianjin. In North America, we laid the groundwork for the future with the
production start of the Golf 7 and the future Audi plant in Mexico, as well as plans for new SUV models in the region.
These are examples of what I think was an impressive year, and one that would not have been possible without the
excellent team effort of our more than 590,000 employees. On behalf of the Board of Management, I would like to
thank our entire team for their dedication and hard work over the past 12 months.
Our goal is and will continue to be qualitative and sustainable growth. We aim to pursue this path actively and assertively with our Strategy 2018. We know that the challenges we face are not going to get any smaller. On the contrary, the
competitive pressure is unrelenting. The situation in markets like Brazil, India and Russia will remain difficult for the
foreseeable future. In addition, the automotive industry is currently experiencing fundamental change. Look no further
than the increasingly stringent CO2 legislation or the rapid digitization of vehicles, plants and showrooms. This costs us
a great deal of energy and money, too. But at Volkswagen, we do not see this transition as a threat, but rather as a
tremendous opportunity one that we must and will take advantage of. We have already laid a solid foundation with
Future Tracks, our Group-wide forward-looking efficiency program, which looks beyond 2018.
As you can see, Volkswagen is making itself future-proof in every area. Our Company continues to offer outstanding
prospects because we stand for innovation, competitiveness and financial strength. This is another reason why I am
convinced that your confidence in and support for the Volkswagen Group and its team will pay off. In every respect.

Sincerely,

Prof. Dr. Martin Winterkorn

S T R AT E G Y

The Board of Management

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S T R AT E G Y

The Board of Management

DI ISIONS

ivi ion
UNIT SALES

2.
NORT

ERI A

1 .
SOUT

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n e cent

5.2
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A SIA PA IFI

Brands and Business Fields

Volkswagen Passenger Cars
Audi
KODA
SEAT
DI ISIONS

Bentley
Porsche
Volkswagen Commercial Vehicles
Scania
MAN

Volkswagen Group China

Volkswagen Financial Services

DIVISIONS

Brands and
D I V IBusiness
S I O N S Fields
Brands and Business Fields
DIVISIONS

Brands and Business Fields

Brands
Brands and
and Business
Business
Brands Fields
and
Business
Fields
Fields
Successful business growth in challenging market conditions.
Successful
business
growth
in challenging
market
conditions.
Product
rollout
continued
across all
brands.
Product rollout continued across all brands.
Successful business growth in challenging market conditions.
Product rollout continued across all brands.

G R O U P ST R U C T U R E

The
Volkswagen
Group
consists of two divisions: the Automotive Division and the Financial Services Division. The AutoGROU
P ST R U C T U R
E
motive
Division comprises
bothofthe
Business Area
and and
the the
Commercial
Engineering
The Volkswagen
Group consists
twoPassenger
divisions: Cars
the Automotive
Division
Financial Vehicles/Power
Services Division.
The AutoG
R O U P Division
STArea.
R U C T UWe
Rcomprises
E report the
Business
Passenger
Cars segment
and the reconciliation
the Passenger
Cars Business
Area. The
motive
both
the Passenger
Cars Business
Area and the in
Commercial
Vehicles/Power
Engineering
The
Volkswagen
Group
consists
of two divisions:
theArea
Automotive
Division
and the
Financial
Services
Division.
The AutoCommercial
Vehicles/Power
Business
consists
of
the Commercial
Vehicles
andCars
the Business
Power Engineering
Business
Area.
We
report
theEngineering
Passenger
Cars
segment
and
the reconciliation
in the
Passenger
Area.
The
motive Division
comprises
both
the of
Passenger
Cars
Business
the
segments.
Accordingly,
the activities
theBusiness
Automotive
Division
comprise
the Commercial
development
ofand
vehicles
and Engineering
engines, the
Commercial
Vehicles/Power
Engineering
Area
consistsArea
of theand
Commercial
VehiclesVehicles/Power
the Power
Business Area.
Passenger
Cars
segment and
the reconciliation
the motorcycles,
Passenger
Cars
Business
The
production
andWe
salereport
of passenger
cars,
commercial
vehicles,
trucks, buses
and
as well
as engines,
theArea.
genuine
segments.
Accordingly,
thethe
activities
of light
the
Automotive
Division
comprise
the in
development
of vehicles
and
the
Commercial
Vehicles/Power
Engineering
Business
Area
consists
the Commercial
and the
Power
parts,
large-bore
diesel
engines,
turbomachinery,
special
gearoftrucks,
units,
propulsion
components
testing
systems
production
and
sale
of passenger
cars,
light
commercial
vehicles,
buses andVehicles
motorcycles,
asand
well
as Engineering
the genuine
segments.
Accordingly,
the
activities
of the
Automotive
Division
the development
of vehicles
and
engines,
the
businesses.
The Ducati
brand
is allocated
to the
Audi brand
andgear
is comprise
thus
presented
in the Passenger
Cars
reporting
segment.
parts,
large-bore
diesel
engines,
turbomachinery,
special
units,
propulsion
components
and
testing
systems
production
and
sale of brand
passenger
cars, light
commercial
vehicles,
trucks,
busessegment,
and
asdealer
well
as
thecustomer
genuine
The
Financial
Division,
which
corresponds
to the
Financial
Services
combines
and
businesses.
TheServices
Ducati
is allocated
to the
Audi brand
and
is thus
presented
in
themotorcycles,
Passenger
Cars
reporting
segment.
parts,
large-bore
diesel
engines,
turbomachinery,
special
gear units,
components
and testing
systems
financing,
leasing,
banking
and insurance
activities, fleet
management
andpropulsion
mobility
offerings.
The Financial
Services
Division,
which
corresponds
to
the
Financial
Services
segment,
combines dealer
and customer
businesses.
The Ducati
brand
is allocated
the Audi brand
and is thus presented
in the
Passenger Cars reporting segment.
financing, leasing,
banking
and
insurancetoactivities,
fleet management
and mobility
offerings.
The Financial Services Division, which corresponds to the Financial Services segment, combines dealer and customer
financing, leasing, banking and insurance activities, fleet management and mobility offerings.
V O L K S WA G E N G R O U P
V O L K S WA G E N G R O U P
V O L K S WA G E N GAutomotive
ROUP
Division
Division
Brand/
Business
Field
Brand/
Division
Business Field
Brand/
Business Field

Financial Services

Automotive

Volkswagen
Passenger
Volkswagen
Automotive
Cars
Passenger
Cars
Volkswagen
Passenger
Cars

Financial Services

Audi

KODA

SEAT

Bentley

Porsche

Audi

KODA

SEAT

Bentley

Porsche

Audi

KODA

SEAT

Bentley

Porsche

21
21

Volkswagen
Commercial
Volkswagen
Vehicles
Commercial
Vehicles
Volkswagen
Commercial
Vehicles

Scania

MAN

Other

Scania

MAN

Other

Scania

MAN

Other

Dealer and customer

financing
Dealer and
customer
Financial
Services
Leasing
financing
Direct
Leasingbank
Dealer and customer
Insurance
Direct bank
financing
Fleet
business
Insurance
Leasing
Mobility
offerings
Fleet business
Direct bank
Mobility offerings
Insurance
Fleet business
Mobility offerings

DIVISIONS

Brands and Business Fields

In this chapter, we present the key volume and financial data relating to the Group brands and to Volkswagen Financial
Services. In light of the ongoing positive development of our business in China and the continuing growth in the
importance of the Chinese market, we also report on business developments and the results of our activities in China in
this chapter.
The production figures and deliveries to customers are presented by product line. Unit sales figures refer to models
sold by the various brand companies, including vehicles of other Group brands. In some cases, there are marked
differences between delivery figures and unit sales as a result of the positive growth of our business in China.
In addition, we explain unit sales and sales revenue in our Europe/Other markets, North America, South America and
Asia-Pacific markets.
KEY FIGU RES BY MARKET

The Volkswagen Group can look back on a very successful 2014. Challenges came from the continuing difficult market
situation and fierce competition. Unit sales passed the ten-million mark for the first time, increasing by 5.0 % to
10.2 million vehicles, while sales revenue rose by 2.8 % year-on-year to 202.5 billion.
In the Europe/Other markets region, the Groups unit sales amounted to 4.4 million vehicles, a 5.2 % increase on the
figure for 2013. Sales revenue was up 5.0 % to 122.9 billion due to volume-related factors.
The Groups unit sales in North America decreased by 2.4 % to 0.9 million vehicles. By contrast, sales revenue was up
0.7 % to 27.6 billion. Mix effects were positive, while deteriorations in exchange rates and decreased volumes had a
negative impact.
In the highly competitive South American region, unit sales declined by 19.6 % to 0.8 million vehicles in the reporting
period. The lower sales figures and negative exchange rate effects saw sales revenue drop by 20.7 % to 13.9 billion.
The Volkswagen Groups models were particularly popular in the Asia-Pacific markets. Including the Chinese joint
ventures, 4.1 million vehicles were sold in the reporting period, a growth rate of 13.3 %. Sales revenue amounted to
38.1 billion, with the 8.8 % year-on-year growth attributable to higher volumes. These figures do not include the sales
revenue generated by our Chinese joint ventures, since these are accounted for using the equity method.

22

DIVISIONS

Brands and Business Fields

KEY FIGU RES BY BRAND AND BUSIN ESS FI ELD1

SALES TO THIRD
VEHICLE SALES

Thousand vehicles/ million

SALES REVENUE

PARTIES

OPERATING PROFIT

2014

2013

2014

2013

2014

2013

2014

2013

Volkswagen Passenger Cars

4,583

4,704

99,764

99,397

68,396

71,426

2,476

2,894

Audi

1,444

1,349

53,787

49,880

36,105

34,560

5,150

5,030

KODA

796

719

11,758

10,324

6,144

5,379

817

522

SEAT

501

459

7,699

6,874

3,412

3,044

127

152

Bentley

11

11

1,746

1,679

1,175

1,122

170

168

Porsche2

187

155

17,205

14,326

15,727

13,175

2,718

2,579

442

436

9,577

9,370

4,826

4,651

504

448

80

80

10,381

10,360

10,381

10,360

955

974
319

Volkswagen
Commercial Vehicles
Scania2
MAN3
VW China4
Other
Volkswagen Financial Services3

120

140

14,286

15,861

14,092

15,744

384

3,506

3,038

1,454

1,364

45,885

40,047

22,127

20,227

2,0525

2,7255

22,139

18,983

20,072

17,319

1,702

1,614

Volkswagen Group

10,217

9,728

202,458

197,007

202,458

197,007

12,697

11,671

Automotive Division6

10,217

9,728

177,538

175,003

179,864

176,914

10,780

9,807

9,575

9,071

143,601

140,077

151,138

147,107

9,835

9,013

642

657

33,937

34,927

28,726

29,808

945

794

24,920

22,004

22,594

20,093

1,917

1,863

of which: Passenger Cars

Business Area
Commercial Vehicles/
Power Engineering
Business Area
Financial Services Division

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
2 Including financial services.
3 MAN Finance International GmbH has been reported within Volkswagen Financial Services since its acquisition by Financial Services AG as of January 1, 2014. The
prior-year figures have not been adjusted.
4 The sales revenue and operating profit of the joint venture companies in China are not included in the figures for the Group. The Chinese companies are
accounted for using the equity method and recorded a proportionate operating profit of 5,182 million (4,296 million).
5 Mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization
of identifiable assets as part of purchase price allocation for Scania, Porsche Holding Salzburg, MAN and Porsche.
6 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.

KEY FIGU RES BY MARKET1

VEHICLE SALES

Thousand vehicles/ million

Europe/Other markets

SALES REVENUE

2014

2013

2014

2013

4,430

4,209

122,858

117,062

North America

879

901

27,619

27,434

South America

794

987

13,868

17,495

4,114

3,632

38,113

35,016

10,217

9,728

202,458

197,007

Asia-Pacific2
Volkswagen Group2

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
2 The sales revenue of the joint venture companies in China is not included in the figures for the Group and the Asia-Pacific market.

23

D
ISIO
DIIIV
ON
NS
D
VVIISSIIO
N
SS

Volkswagen
Passenger
Cars
IPassenger
Volkswagen
Cars
Volkswagen
Cars
DDIIVVIPassenger
SSIIOONNSS
VolkswagenPassenger
PassengerCars
Cars
Volkswagen

The
The Volkswagen
Volkswagen Passenger
Passenger Cars
Cars brand
brand continued
continued its
its model
model rollout
rollout in
in 2014,
2014, launching
launching the
the
The
Volkswagen
Passenger
Cars
brand
continued
its
model
rollout
in
2014,
launching
the
The
Volkswagen
Passenger
Cars
brand
continued
its
model
rollout
in
2014,
launching
the
eighth
generation
of
the
Passat,
Europes
most
successful
company
car.
The
best-selling
eighth generation of the Passat, Europes most successful company car. The best-selling
eighth generation
generation of
of the
the Passat,
Passat,
Europes most
most
successful
company car.
car. The
The best-selling
best-selling
eighth
Europes
successful
company
Golf
its
anniversary.
Golf celebrated
celebrated
its 40th
40th
anniversary.
Golf celebrated
celebrated its
its 40th
40th anniversary.
anniversary.
Golf

BBU
IN
S D
ELO
M
US
NEEES
DEEEV
OP
MEEEN
NT
BU
SSIIN
SSSS D
VVEELLO
PPM
N
TT
The
launch
of
the
new
in
B
U
S
I
N
E
S
S
D
E
V
E
L
O
P
M
E
N
T
The
launch
of
the
new
in the
the fall
fall of
of 2014
2014 was
was the
the highlight
highlight for
for the
the Volkswagen
Volkswagen Passenger
Passenger Cars
Cars brand.
brand. This
This is
is its
its
BThe
USIN
E S S D Eof
V Ethe
L O Pnew
M E N Passat
TPassat
launch
Passat
in
the
fall
of
2014
was
the
highlight
for
the
Volkswagen
Passenger
Cars
brand.
This
is
its

second
model
series
to
be
on
Transverse
Toolkit
(((MQB
).
generation
boasts
new
engines,
The
launch
of the
the new
new
Passat
in the
the
fall Modular
of 2014
2014 was
was
the highlight
highlight
for
the Volkswagen
Passenger
Cars
brand.
This
its
second
model
series
toPassat
be based
based
on the
the
Modular
Transverse
Toolkit
MQB
). The
The eighth
eighthPassenger
generation
boasts
newThis
engines,
The
launch
of
in
fall
of
the
for
the
Cars
brand.
isis its
second
model
series
to
be
based
on
the
Modular
Transverse
Toolkit
MQB
).Volkswagen
The
eighth
generation
boasts
new
engines,
more
driver
assistance
systems,
new
infotainment
capabilities
and
a
lighter
body
shell,
making
it
one
of
the
most
prosecond
model
series
to
be
based
on
the
Modular
Transverse
Toolkit
(
MQB
).
The
eighth
generation
boasts
new
engines,
more driver
driver
assistance
systems,
newthe
infotainment
capabilities
and aa(MQB
lighter
body
shell,generation
making itit one
one of
of the
the most
most
prosecond
modelassistance
series to be
based new
on
Modular Transverse
Toolkit
). The
eighth
boasts
new
engines,
more
systems,
infotainment
capabilities
and
lighter
body
shell,
making
progressive
mid-range
models.
The
also
extensively
updated
Jetta,
which
is
in
versions
both
the
more
driver
assistance
systems,
new infotainment
infotainment
capabilities
and
lighter
body
shell,
making itit
one
of the
thefor
most
progressive
mid-range
models.
The brand
brand
also unveiled
unveiled the
the
extensively
updated
Jetta,
which
is available
available
inone
versions
for
bothprothe
more
driver
assistance
systems,
new
capabilities
and
aa lighter
body
shell,
making
of
most
gressive
mid-range
models.
The
brand
also
unveiled
the
extensively
updated
Jetta,
which
is
available
in
versions
for
both
the
North
American
and
European
markets.
The
Jetta
is
one
of
the
worlds
most
successful
saloons,
and
more
than
14
million
gressive
mid-range
models.
The
brand
also
unveiled
the
extensively
updated
Jetta,
which
is
available
in
versions
for
both
the
North American
American
and
European
markets.
The
Jetta is
isthe
one
of the
the worlds
worlds
most
successful
saloons,
and
more
than
14both
million
gressive
mid-range
models.
The markets.
brand
also
unveiled
extensively
updated
Jetta,
which saloons,
is
available
inmore
versions
for
the
North
and
European
The
Jetta
one
of
most
successful
and
than
14
million
have
off
production
since
1979.
The
saw
aaa special
anniversary:
40
Golf.
North
American
and
Europeanline
markets.
The
Jetta
oneof
ofthe
theperiod
worldsalso
most
successful
saloons,
andmore
more
thanof
14the
million
have rolled
rolled
off the
the
production
line
sinceThe
1979.
The
reporting
period
also
saw
specialsaloons,
anniversary:
40 years
years
of
the
Golf.
North
American
and
European
markets.
Jetta
isisreporting
one
worlds
most
successful
and
than
14
million
have
rolled
off
the
production
line
since
1979.
The
reporting
period
also
saw
special
anniversary:
40
years
of
the
Golf.
Production
began
in
1974
and
the
model
went
on
to
lend
its
name
to
an
entire
market
segment.
More
than
30
million
of
have
rolled
off
the
production
line
since
1979.
The
reporting
period
also
saw
a
special
anniversary:
40
years
of
the
Golf.
Production
began
in
1974 and
andline
the model
model1979.
went The
on to
toreporting
lend its
its name
name
toalso
an entire
entire
market
segment.
More
than
30
million
of
have
rolled off
the in
production
since
period
saw amarket
special segment.
anniversary:
40than
years30
ofmillion
the Golf.
Production
began
1974
the
went
on
lend
to
an
More
of
these
best-selling
cars
have
been
sold
over
the
models
40
years
and
seven
generations.
The
Golfs
range
of
drive
systems
Production
began
in
1974
and
the
model
went
on
to
lend
its
name
to
an
entire
market
segment.
More
than
30
million
of
these best-selling
best-selling
cars
haveand
been
sold
overwent
the models
models
40its
years
andtoseven
seven
generations.
The Golfs
Golfs
range
of drive
drive
systems
Production
began cars
in 1974
thesold
model
on to lend
name
an entire
market segment.
More
than
30 million
of
these
have
been
over
the
40
years
and
generations.
The
range
of
systems
was
in
include
pure-play
and
the
models
plug-in
the
GTE
these
best-selling
carsto
have
beenthe
sold
overthe
theelectric
modelse-Golf
40years
years
and
sevengenerations.
generations.
Theversion,
Golfsrange
range
ofdrive
drive
systems
was expanded
expanded
in 2014
2014
to
include
the
pure-play
electric
e-Golf
andand
theseven
models
plug-in hybrid
hybrid
version,
the Golf
Golf
GTE...systems
these
best-selling
cars
have
been
sold
over
models
40
The
Golfs
of
was
expanded
in
2014
to
include
the
pure-play
electric
e-Golf
and
the
models
plug-in
hybrid
version,
the
Golf
GTE
The
Volkswagen
Passenger
Cars
brands
deliveries
grew
by
1.6
%
to
6.1
million
vehicles
in
the
reporting
wasexpanded
expanded
in
2014
to
include
the
pure-play
electric
e-Golf
and
the
models
plug-in
hybrid
version,
the
Golf
GTE
.
The
Volkswagen
Passenger
Cars
brands
deliveries
grew
by
1.6
%
to
6.1
million
vehicles
in
the
reporting
period,
was
in
2014
to
include
the
pure-play
electric
e-Golf
and
the
models
plug-in
hybrid
version,
Golf
GTE
.
The Volkswagen Passenger Cars brands deliveries grew by 1.6 % to 6.1 million vehicles in the reporting period,
period,
despite
ongoing
conditions.
Sales
in
China,
the
largest
single
market,
saw
particularly
encouraging
Thethe
Volkswagen
Passenger market
Cars brands
brands
deliveries
grew
by 1.6
1.6
%
to 6.1
6.1
million
vehicles
in
the reporting
reporting
period,
The
Volkswagen
Passenger
Cars
deliveries
by
to
million
vehicles
the
period,
despite
the
ongoing challenging
challenging
market
conditions.
Sales grew
in
China,
the%
largest
single
market,
sawin
particularly
encouraging
growth
(+
10.0
%).
were
also
year-on-year
in
Western
notably
in
the
(+
%).
despitethe
the
ongoing
challenging
market
conditions.
Sales
inChina,
China,Europe,
thelargest
largest
single
market,
sawKingdom
particularly
encouraging
despite
ongoing
challenging
market
conditions.
Sales
the
single
saw
particularly
encouraging
growth
(+
10.0
%). Deliveries
Deliveries
were
also up
up
year-on-year
inin
Western
Europe,
notably
inmarket,
the United
United
Kingdom
(+10.8
10.8
%).
The
Volkswagen
Passenger
Cars
brand
sold
vehicles
in
down
2.6
%
on
the
figure.
This
growth
(+
10.0%).
%).Deliveries
Deliveries
were
also
upyear-on-year
year-on-year
inWestern
Western
Europe,
notably
inthe
the
United
Kingdom(+
(+
10.8%).
%).
The(+
Volkswagen
Passenger
Cars
brand
sold 4.6
4.6 million
million
vehicles
in 2014,
2014,
down in
2.6
%United
on
the prior-year
prior-year
figure.
This was
was
growth
10.0
were
also
up
in
Europe,
notably
Kingdom
10.8
The
Volkswagen
Passenger
Cars
brand
sold
4.6
million
vehicles
in
2014,
down
2.6
%
on
the
prior-year
figure.
This
was
mainly
to
market
in
and
the
demand
as
of
crisis.
Thedue
Volkswagen
Passenger
Carsbrand
brand
soldAmerica
4.6million
million
vehicles
in2014,
2014,down
down
2.6%
%in
onRussia
theprior-year
prior-year
figure.
This
was
mainly
due
to the
the declining
declining
market
in South
South
America
and
the deteriorating
deteriorating
demand
in
Russia
as aaa result
result
of the
the
crisis.
The
Volkswagen
Passenger
Cars
sold
4.6
vehicles
in
2.6
on
the
figure.
This
was
mainly
due
to
the
declining
market
in
South
America
and
the
deteriorating
demand
in
Russia
as
result
of
the
crisis.
Western
Europe
saw
encouraging
growth.
There
was
customer
demand
for
the
the
Estate
in
mainly
due
to the
the
declining
market
in South
South
America
and the
the
deteriorating
demand
in Russia
Russia
asand
result
of the
the
crisis.
Western
Europe
saw
encouraging
growth.
There
was strong
strong
customer
demanddemand
for the
the up!,
up!,
the Golf
Golf
and
the Golf
Golf
Estate
in
mainly
due
to
declining
market
in
America
and
deteriorating
in
as
aa result
of
crisis.
Western
Europe
saw
encouraging
growth.
There
was
strong
customer
demand
for
the
up!,
the
Golf
and
the
Golf
Estate
in
particular.
The
difference
between
deliveries
and
unit
sales
is
due
to
the
fact
that
the
vehicle-producing
joint
ventures
in
Western
Europe
saw
encouraging
growth.
There
was
strong
customer
demand
for
the
up!,
the
Golf
and
the
Golf
Estate
in
particular.
The difference
difference
betweengrowth.
deliveries
andwas
unit
salescustomer
is due
due to
to the
the
fact that
that
the vehicle-producing
vehicle-producing
joint
ventures
Western
Europe
saw encouraging
There
strong
demand
for the
up!, the Golf and the
Golf
Estate in
in
particular.
The
between
deliveries
and
unit
sales
is
fact
joint
ventures
China
counted
as
Passenger
Cars
brand
particular.
The
difference
between deliveries
deliveries
and
unit
salescompanies.
due to
to the
the fact
fact that
that the
the vehicle-producing
vehicle-producing joint
joint ventures
ventures in
in
China are
are not
not
counted
as Volkswagen
Volkswagen
Passenger
Cars
brand
companies.
particular.
The
difference
between
and
unit
sales
isis due
China
are
not
counted
as
Volkswagen
Passenger
Cars
brand
companies.
The
Volkswagen
Passenger
Cars
brand
produced
6.2
million
vehicles
in
2014,
up
2.3
%
year-on-year.
There
was
China
are
not
counted
as
Volkswagen
Passenger
Cars
brand
companies.
The
Volkswagen
Passenger
CarsPassenger
brand produced
produced
6.2companies.
million vehicles
vehicles in
in 2014,
2014, up
up 2.3
2.3%
% year-on-year.
year-on-year. There
There was
was
China
areVolkswagen
not countedPassenger
as Volkswagen
Cars brand
The
Cars
brand
6.2
million
particular
growth
locations
in
and
Germany.
A
highlight
was
start
of
the
Emden
in
The Volkswagen
Volkswagen
Passenger
Cars
brand
produced
6.2
million
vehicles
in
2014,
up 2.3
2.3%
% of
year-on-year.
There
was
particular
growth at
at the
the
locationsCars
in China
China
and
Germany.
highlight
was the
thein
start
of production
production
of
the Passat
Passat in
inThere
Emden
in
The
Passenger
brand
produced
6.2
vehicles
2014,
up
year-on-year.
was
particular
growth
at
the
locations
in
China
and
Germany.
AAmillion
highlight
was
the
start
of
production
of
the
Passat
in
Emden
in
August
2014.
In
China,
production
commenced
for
the
Lamando,
developed
specially
for
the
Chinese
market.
Volkswagen
particular
growth
at
the
locations
in
China
and
Germany.
A
highlight
was
the
start
of
production
of
the
Passat
in
Emden
in
August 2014.
2014.
In China,
China,
production
commenced
for the
the Lamando,
Lamando,
developed
specially
for the
the Chinese
Chinese
market.
Volkswagen
particular
growth
at the production
locations incommenced
China and Germany.
A highlight
was the specially
start
of production
of themarket.
Passat inVolkswagen
Emden in
August
In
for
developed
for
de
celebrated
its
fiftieth
August
2014.
InChina,
China,
production
commencedfor
forthe
theLamando,
Lamando,developed
developedspecially
speciallyfor
forthe
theChinese
Chinesemarket.
market.Volkswagen
Volkswagen
de Mexico
Mexico
celebrated
itsproduction
fiftieth anniversary.
anniversary.
August
2014.
In
commenced
de
Mexico
celebrated
its
fiftieth
anniversary.
de
Mexico
celebrated
its
fiftieth
anniversary.
de Mexico celebrated its fiftieth anniversary.

SSAALLEESS RREEVVEEN
N
RN
NU
UEEE A
ND
D EEEA
NIIIN
NG
GS
SALES REVEN
U
AAN
D
AARRN
N
G
SS
The
Volkswagen
Passenger
Cars
S
A
L
E
S
R
E
V
E
N
U
E
A
N
D
E
A
R
N
I
N
G
The
Passenger
Cars
brands sales
sales revenue
revenue amounted
amounted to
to 99.8
99.8 billion
billion in
in the
the past
past year,
year, remaining
remaining level
level with
with the
the
SThe
A L E Volkswagen
SVolkswagen
R E V E N U E APassenger
N D E A R N ICars
N G SS brands
brands
sales
revenue
amounted
to
99.8
billion
in
the
past
year,
remaining
level
with
the

previous
years
of
billion
(+
%).
Lower
sales
higher
upfront
expenditures
for
technologies
The
Volkswagen
Passenger
Cars
brands
sales
revenue
amounted
to99.8
99.8
billion
inthe
thepast
past
year,remaining
remaining
level
withthe
the
previous
years figure
figure
of 99.4
99.4
billion
(+0.4
0.4
%).
Lower unit
unit
sales figures,
figures,
higher
upfront
expenditures
for new
newlevel
technologies
The
Volkswagen
Passenger
Cars
brands
sales
revenue
amounted
to
billion
in
year,
with
previous
years
figure
of
99.4
billion
(+
0.4
%).
Lower
unit
sales
figures,
higher
upfront
expenditures
for
new
technologies
and
exchange
rate
trends
had
a
negative
impact
on
operating
profit,
whereas
lower
material
costs
and
improvements
in
the
previous
years
figure
of
99.4
billion
(+
0.4
%).
Lower
unit
sales
figures,
higher
upfront
expenditures
for
new
technologies
and
exchange
rate
trends
had
a
negative
impact
on
operating
profit,
whereas
lower
material
costs
and
improvements
in
the
previous
years
figure
of
99.4
billion
(+
0.4
%).
Lower
unit
sales
figures,
higher
upfront
expenditures
for
new
technologies
and exchange rate trends had a negative impact on operating profit, whereas lower material costs and improvements in the
mix
had
aa positive
effect.
Operating
profit
declined
by
to
billion
and
operating
on
andexchange
exchange
ratetrends
trends
hadaanegative
negative
impact
onoperating
operating
profit,
whereas
lower
material
costsreturn
andimprovements
improvements
inthe
the
and
rate
impact
on
profit,
whereas
material
costs
and
in
mix
had
positive
effect. had
Operating
profit
declined
by 14.4
14.4%
%
to 2.5
2.5
billionlower
and the
the
operating
return
on sales
sales decreased
decreased
from
2.9
to
mix had
had
a positive
positive
effect. Operating
Operating profit
profit declined
declined by
by 14.4
14.4%
% to
to 2.5
2.5billion
billion and
and the
the operating
operating return
returnon
on sales
sales decreased
decreased
mix
effect.
from
2.9a%
%
to 2.5
2.5%.
%.
from2.9
2.9%
%to
to2.5
2.5%.
%.
from

40
40 years
years
of
of the
the best-selling
best-selling Golf
Golf
of
the
best-sellingGolf
Golf
of the best-selling
24
24
24
24
24

DIVISIONS

Volkswagen
Cars
DDIIVVIIPassenger
SSIIOONNSS
Volkswagen Passenger
Passenger Cars
Cars
Volkswagen

PRODUCTION*

V O L K SWA G E N PA S S E N G E R C A R S B R A N D

PPRROODDUUCCTTIIOONN**

SWAGGEENN PA
PASSSSEENNGGEERR CCAARRSS BBRRAANNDD
VVOOLLKKSWA

Units

2014

2013

2014

2013

Units
Units

2014
2014

2013
2013

2014
2014

2013
2013

%
%

Golf

1,011,124

824,629

Deliveries (thousand units)*

6,119

6,022

+ 1.6

Golf
Golf
Jetta/Sagitar

1,011,124
1,011,124
926,277

824,629
824,629
909,204

Deliveries
(thousandunits)*
units)*
Deliveries
(thousand
Vehicle
sales

6,119
6,119
4,583

6,022
6,022
4,704

1.6
++1.6
2.6

Jetta/Sagitar
Jetta/Sagitar
Polo

926,277
926,277
753,754

909,204
909,204
725,291

Vehiclesales
sales
Vehicle
Production*

4,583
4,583
6,156

4,704
4,704
6,017

2.6
+2.6
2.3

Polo
Polo
Passat/Magotan

753,754
753,754
747,583

725,291
725,291
756,530

Production*
Production*
Sales
revenue ( million)

6,156
6,156
99,764

6,017
6,017
99,397

2.3
++2.3
0.4

Passat/Magotan
Passat/Magotan
Tiguan

747,583
747,583
515,349

756,530
756,530
472,958

Salesrevenue
revenue
(million)
million)
Sales
(
Operating
profit

99,764
99,764
2,476

99,397
99,397
2,894

0.4
0.4
++14.4

Tiguan
Tiguan
Lavida

515,349
515,349
481,740

472,958
472,958
450,703

Operating
profitrevenue
Operating
profit
as % of sales

2,476
2,476
2.5

2,894
2,894
2.9

14.4
14.4

Lavida
Lavida
Gol

481,740
481,740
300,629

450,703
450,703
454,725

as%
%of
ofsales
salesrevenue
revenue
as

2.5
2.5

2.9
2.9

Gol
Santana
Gol

300,629
295,485
300,629

454,725
261,938
454,725

Santana
Santana
Bora

295,485
295,485
226,006

261,938
261,938
238,797

Bora
Bora
up!

226,006
226,006
217,278

238,797
238,797
143,188

up!
up!
Touran

217,278
217,278
126,567

143,188
143,188
135,382

Touran
Touran
Fox

126,567
126,567
106,991

135,382
135,382
164,763
164,763
164,763
93,334

Fox
Fox
Saveiro

106,991
106,991
96,420

Saveiro
Saveiro
Beetle

96,420
96,420
91,464

93,334
93,334
109,517

Beetle
Beetle
CC

91,464
91,464
85,591

109,517
109,517
88,632

CC
CC
Touareg

85,591
85,591
63,741

88,632
88,632
70,861

Touareg
Touareg
Sharan

63,741
63,741
49,498

70,861
70,861
40,159

Sharan
Sharan
Scirocco

49,498
49,498
23,573

40,159
40,159
23,400

Scirocco
Scirocco
Suran

23,573
23,573
23,332

23,400
23,400
39,674

Suran
Suran
Eos

23,332
23,332
6,567

39,674
39,674
7,651

Eos
Eos
Phaeton

6,567
6,567
4,061

7,651
7,651
5,812

Phaeton
Phaeton
Lamando

4,061
4,061
3,080

5,812
5,812

Lamando
Lamando
XL1

3,080
3,080
106

106
6,156,216
106

6,017,148

6,156,216
6,156,216

6,017,148
6,017,148

XL1
XL1

* The Saveiro model is reported in the Volkswagen Passenger Cars brand retrospectively
as of January 1, 2013.
TheSaveiro
Saveiromodel
modelisisreported
reportedin
inthe
theVolkswagen
VolkswagenPassenger
PassengerCars
Carsbrand
brandretrospectively
retrospectively
** The
asof
ofJanuary
January1,
1,2013.
2013.
as

Golf GTE
GTE
Golf

DELIVERIES BY MARKET
DEEpercent
MAARRKKEETT
Din
LLIIVVEERRIIEESS BBYY M

inpercent
percent
in

Europe/Other markets
Northmarkets
America
Europe/Other
markets
Europe/Other
South
America
NorthAmerica
America
North
Asia-Pacific
SouthAmerica
America
South
Asia-Pacific
Asia-Pacific

25
25
25

31.0 %
9.6%
%
31.0
%
31.0
10.8
%
9.6%
%
9.6
48.6
%
10.8%
%
10.8
48.6%
%
48.6

F U R T H E R I N F O R M A T I O N www.volkswagen.com

ii

MAATTIIOONN www.volkswagen.com
www.volkswagen.com
FFUURRTTHHEERR IINNFFOORRM

DIVISIONS
D I VAudi
ISIONS

Audi

The Audi brand recorded growth in all regions in 2014, strengthening its leading position
The
Audithe
brand
recorded
growth
in the
all regions
2014, strengthening
its leading
in both
Western
European
and
Chineseinpremium
segments. With
over 1.7position
million
in both
the Western
European
and theset
Chinese
premium
segments.
With
over 1.7 million
vehicles
delivered,
the company
a new sales
record
despite the
challenging
vehicles delivered, the company
set a in
new
sales
record despite the challenging
environment
some
markets.
environment in some markets.

BUSI N ESS DEVELOPMENT

The
B
U S I third
N E S S generation
D E V E L O P M Eof
N Tthe

iconic Audi TT was launched in 2014 and is available as both a coup and a roadster. The
Audithird
TT features
sharpened
reduced
weight
and anininnovative
and display
brand also
The
generation
of the design,
iconic Audi
TT was
launched
2014 and control
is available
as bothconcept.
a coup The
and Audi
a roadster.
The
unveiled
facelifts sharpened
for the A6 and
A7 models
during
the
year.
has expanded
its range
of concept.
alternative
drive
systems
Audi
TT features
design,
reduced
weight
and
an Audi
innovative
control and
display
The
Audi
brand with
also
the A3 Sportback
the A3
g-tron.
Audi
brand
in the
reporting
period
unveiled
facelifts e-tron
for theand
A6 and
A7Sportback
models during
theThe
year.
Audi
hasdelivered
expanded1.7
its million
range ofvehicles
alternative
drive
systems
with
(+ 10.5
%), settinge-tron
a newand
salesthe
record.
Growth was
particularly
in delivered
the USA (+1.7
15.1%)
and
China in
(+ 17.7).
the
A3 Sportback
A3 Sportback
g-tron.
The Audihigh
brand
million
vehicles
the reporting period
The%),
Audi
brand
sold
1.4record.
millionGrowth
vehicles
inparticularly
the reporting
up (+
7.0
% %)
year-on-year.
In17.7).
addition, a further
15.1%)
(+ 10.5
setting
a new
sales
was
highperiod,
in the USA
15.1
and China (+
513 The
thousand
vehicles
were
sold by
the FAW
Chinese
joint
There was particularly
strong
global
Audi Audi
brand
sold 1.4
million
vehicles
in-Volkswagen
the reporting
period,
upventure.
7.0 % year-on-year.
In addition,
a further
demand
for theAudi
A3 and
A6 series,
Q3 and
SUVs. Automobili
its unit sales
to global
2,521
513
thousand
vehicles
were and
soldthe
by the
FAWQ5
-Volkswagen
ChineseLamborghini
joint venture.S.p.A.
Thereincreased
was particularly
strong
vehicles,for
compared
withA62,111
vehicles
inQ3
theand
previous
year.
The new Huracn
modelS.p.A.
was well
received
customers.
demand
the A3 and
series,
and the
Q5 SUV
s. Automobili
Lamborghini
increased
itsby
unit
sales to 2,521
A totalcompared
of 1.8 million
were
produced
atyear.
11 plants
in 9 Huracn
countriesmodel
in the was
pastwell
year,received
12.2 % by
more
vehicles than
vehicles,
with Audi
2,111models
vehicles
in the
previous
The new
customers.
in 2013.
Two
further
countries
have now
added:atproduction
start in Brazil
2015,
Mexico
in 2016.
A total
of 1.8
million
Audi models
werebeen
produced
11 plants inwill
9 countries
in thein
past
year,followed
12.2 % by
more
vehicles
than
Lamborghini
produced
2,650 (2,122)
vehicles.
in
2013. Two further
countries
have now
been added: production will start in Brazil in 2015, followed by Mexico in 2016.
Lamborghini produced 2,650 (2,122) vehicles.
SALES REVENUE AND EARNINGS

sales
SThe
A L EAudi
S R E Vbrand
E N U E recorded
AND EARN
I N G Srevenue growth of 7.8 % to 53.8 billion in the reporting period. This was mainly due to the
positive
sales
growth.sales
At 5.2
billion,
operating
was up
2.4 %incompared
withperiod.
5.0 billion
in the
previous
The
Audiunit
brand
recorded
revenue
growth
of 7.8profit
% to 53.8
billion
the reporting
This was
mainly
due toyear.
the
The increased
volumes
and
material
costs had
a positive
while upfront
productsyear.
and
positive
unit sales
growth.
Atlower
5.2 billion,
operating
profit
was upimpact,
2.4 % compared
withinvestments
5.0 billion in
in new
the previous
technologies,
well asand
in the
expansion
the international
network,
an adverseineffect.
The brands
The
increasedas
volumes
lower
materialofcosts
had a positiveproduction
impact, while
upfronthad
investments
new products
and
operating return
on sales
amounted
to 9.6 %
%). The financial
key performance
indicators
for theeffect.
Lamborghini
and
technologies,
as well
as in
the expansion
of (10.1
the international
production
network, had
an adverse
The brands
Ducati brands
areon
included
in the financial
figures
Audi
brand.key performance indicators for the Lamborghini and
operating
return
sales amounted
to 9.6 %
(10.1for
%).the
The
financial
Ducati brands are included in the financial figures for the Audi brand.

10.5 %%
Increase in deliveries in 2014
Increase in deliveries in 2014
26
26

DIVISIONS
D I VAudi
ISIONS
DIVISIONS

Audi
Audi

PRODUCTION

AU DI B RA N D

PRODUCTION
PRODUCTION

AU DI B RA N D
AU DI B RA N D

Units

2014

2013

2014

2013

Units
Units

2014
2014

2013
2013

2014
2014

2013
2013

Audi
A3
Audi
A4
A3
A3
A4
A6
A4
A6
Q5
A6
Q5
Q3
Q5
Q3
A1
Q3
A5
A1
A5
A1
Q7
A5
Q7
A5
A8
Q7
A8
Q7
A7
A8
A7
A8
TT
A7
TT
A7
R8
TT
R8
TT
R8
R8

351,526
328,465
351,526
351,526
328,465
307,693
328,465
307,693
260,853
307,693
260,853
200,097
260,853
200,097
115,377
200,097
88,545
115,377
88,545
115,377
61,012
88,545
61,012
88,545
39,557
61,012
39,557
61,012
27,709
39,557
27,709
39,557
17,621
27,709
17,621
27,709
2,169
17,621
2,169
17,621
1,800,624
2,169
1,800,624
2,169

221,097
338,449
221,097
221,097
338,449
288,739
338,449
288,739
231,435
288,739
231,435
152,163
231,435
152,163
120,520
152,163
98,207
120,520
98,207
120,520
63,400
98,207
63,400
98,207
39,717
63,400
39,717
63,400
30,799
39,717
30,799
39,717
18,358
30,799
18,358
30,799
2,500
18,358
2,500
18,358
1,605,384
2,500
1,605,384
2,500

1,800,624
1,800,624

1,605,384
1,605,384

Audi brand
brand
Audi

1,540
1,540
654
1,540
654
1,540
456
654
456

456

2,650

2,650
2,650
1,803,274
1,803,274

76
76
403
76
403
76
710
403
710
653
653
710
280
280
653
2,122
280
2,122
2,122
1,607,506
1,607,506

Audi brand
Ducati, motorcycles
Ducati,
motorcycles

1,803,274
45,339
45,339

1,607,506
45,018
45,018

Ducati, motorcycles

45,339

45,018

Audi

Lamborghini
Lamborghini
Huracn Coup
Coup
Lamborghini
Huracn
Lamborghini
Aventador
Roadster
Huracn
Coup
Aventador
Roadster
Huracn Coup
Aventador Coup
Coup
Roadster
Aventador
Gallardo Coup
Coup
Gallardo
Aventador
Coup
Gallardo Spyder
Spyder
Gallardo
Coup
Gallardo Spyder

%
%

Deliveries (thousand units)

1,744

1,578

+ 10.5

Deliveries
(thousand
Vehicle
sales
Deliveries
(thousand units)
units)
Vehicle sales
sales
Production
Vehicle

1,744
1,444
1,744
1,444
1,803
1,444

1,578
1,349
1,578
1,349
1,608
1,349

as % of sales
Operating
profit
Operating
profitrevenue

1,803
53,787
1,803
5,150
53,787
53,787
9.6
5,150
5,150

1,608
49,880
1,608
5,030
49,880
49,880
10.1
5,030
5,030

+
7.0
++10.5
10.5
+12.2
7.0
++
7.0
++12.2
12.2
7.8
+

as
as %
% of
of sales
sales revenue
revenue

9.6
9.6

10.1
10.1

Production
Sales
revenue ( million)
Production
Operating
profit
Sales
revenue
(
Sales
revenue
( million)
million)

A3
e-tron
A3 e-tron

+ 7.8
2.4
+
7.8
+ 2.4
2.4
+

DELIVERIES BY MARKET
DELIVERIES BY MARKET

in percent
in
D Epercent
LIVERIES BY MARKET
in percent

Europe/Other markets
Europe/Other
North markets
America
North America
Europe/Other
South markets
America
South
America
North
America
North
Asia-Pacific
Asia-Pacific
South
America
South
America

47.0%
%
47.0
47.0%
%
47.0
12.6%
%
12.6
12.6
%
12.6
47.0
%
47.0
%
1.3%
1.3
%
1.3
%
1.3
%
12.6
%
12.6
%
39.1%
%
39.1
39.1
%
39.1
1.3%
%
1.3
%
Asia-Pacific 39.1
39.1%
%
Asia-Pacific

i
i
ii

27
27
27
27

FURTHER
FURTHER
FF U
UR
RT
TH
H EE R
R

INFORMATION
INFORMATION
II N
N FF O
OR
RM
MA
AT
T II O
ON
N

www.audi.com
www.audi.com
www.audi.com
www.audi.com
www.audi.com
www.audi.com
www.audi.com
www.audi.com

DIVISIONS
D IKODA
VISIONS

KODA

In 2014, the KODA brand delivered more than a million vehicles to customers for the first
In
2014,
the KODA
brand delivered
more model
than arollout
millioninvehicles
to customers
for the first
time,
reaping
the benefits
of the largest
its history.
The third generation
time, reaping the benefitsFabia
of the
largest
model
rollout
in
its
history.
The
third
generation
was also successfully launched.
Fabia was also successfully launched.

BUSI N ESS DEVELOPMENT

The
its new model rollout and recorded positive business growth in 2014. The Octavia family was
B
U S IKODA
N E S S D Ebrand
V E L O Pcontinued
MENT
very KODA
successful,
with
the sporty
Octavia
RS rollout
in particular
extremely
well received
customers.
The
Rapid
celebrated
its
The
brand
continued
its new
model
and recorded
positive
businessby
growth
in 2014.
The
Octavia
family was
global
launch one
yearthe
agosporty
and isOctavia
alreadyRS
theinsecond
mostextremely
successfulwell
series
after the
It is The
particularly
popular with
very
successful,
with
particular
received
byOctavia.
customers.
Rapid celebrated
its
customers
in the
markets.
KODAthe
celebrated
the global
premiere
ofafter
the Fabia
Combi It
and
hatchback version
the
global
launch
onegrowth
year ago
and is already
second most
successful
series
the Octavia.
is particularly
popularatwith
Paris MotorinShow
in earlymarkets.
OctoberKODA
2014, offering
a wide
new features.
KODA
brand
is expectingversion
to roll out
its
customers
the growth
celebrated
therange
globalofpremiere
of theThe
Fabia
Combi
and hatchback
at the
new corporate
identity
across
its global
dealer
network
the end
of 2015,
and will
range of to
models
over
Paris
Motor Show
in early
October
2014,
offering
a widebyrange
of new
features.
The further
KODA expand
brand isitsexpecting
roll out
its
new
corporate
identity
itsemotionalize
global dealerthe
network
the next
few years.
The across
aim is to
brand.by the end of 2015, and will further expand its range of models over
The few
KODA
brand
set aisnew
record for deliveries,
the next
years.
The aim
to emotionalize
the brand.selling more than one million vehicles worldwide for the first time
(+ 12.7
China
remained
the record
brandsfor
strongest
single
market
of 24.0
%, butworldwide
KODA also
expanded
its
The%).
KODA
brand
set a new
deliveries,
selling
morewith
thangrowth
one million
vehicles
for the
first time
position
in Europe.
(+
12.7 %).
China remained the brands strongest single market with growth of 24.0 %, but KODA also expanded its
KODA
sold 796 thousand vehicles in the reporting period, a 10.8 % increase as against the previous year. Demand for
position
in Europe.
the Rapid
Octavia
family
in particular
developed
positively.
The
figures
for deliveries
and unit
KODAand
soldthe
796
thousand
vehicles
in the reporting
period,
a 10.8
% difference
increase asbetween
against the
previous
year. Demand
for
salesRapid
is mainly
due
to thefamily
fact that
the vehicle-producing
joint ventures
in China
are not
counted
as KODA
brand
the
and the
Octavia
in particular
developed positively.
The difference
between
figures
for deliveries
and
unit
companies.
sales
is mainly due to the fact that the vehicle-producing joint ventures in China are not counted as KODA brand
The KODA brand produced 1,050 thousand (932 thousand) vehicles worldwide across seven series in 2014, up 12.6 %
companies.
year-on-year.
Wide-ranging
upgrades
modernization
work took
placeworldwide
at the main
production
facilityinin2014,
Mlad
The KODA
brand produced
1,050and
thousand
(932 thousand)
vehicles
across
seven series
upBoleslav
12.6 %
for the production
of the new
Fabia. Around
3.4 million ofwork
thesetook
vehicles
since thefacility
modelinwas
launched
in
year-on-year.
Wide-ranging
upgrades
and modernization
place have
at thebeen
mainsold
production
Mlad
Boleslav
1999.
plant in of
Kvasiny,
eastern
celebrated
80thvehicles
anniversary.
It produces
the the
Superb,
Yeti
and
Roomster
for
theThe
production
the new
Fabia.Bohemia,
Around 3.4
million ofits
these
have been
sold since
model
was
launched
in
models.
1999.
The plant in Kvasiny, eastern Bohemia, celebrated its 80th anniversary. It produces the Superb, Yeti and Roomster
models.
SALES REVENUE AND EARNINGS

revenue
SThe
A L EKODA
S R E V E Nbrands
U E A N Dsales
EARN
I N G S increased by 13.9 % year-on-year to 11.8 billion in the reporting period due to volumeThe
KODA
brands
sales
revenue
increased
by 13.9
% year-on-year
to 11.8
billion
in the
reporting
period
due
volumerelated
factors.
Positive
volume
and
mix effects,
coupled
with improved
material
costs,
lifted
operating
profit
byto56.5
% to
817
million
(522
million).
Theand
operating
return
on sales
rose
from 5.1material
% in the costs,
previous
year
to 7.0 %.profit by 56.5 % to
related
factors.
Positive
volume
mix effects,
coupled
with
improved
lifted
operating
817 million (522 million). The operating return on sales rose from 5.1 % in the previous year to 7.0 %.

1 million
million
Vehicles delivered in 2014
Vehicles delivered in 2014
28
28

DIVISIONS
D IKODA
VISIONS
D IKODA
VISIONS

KODA

PRODUCTION

KO D A B R A N D

PRODUCTION

KO D A B R A N D

PRODUCTION

KO D A B R A N D

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

Octavia
Units

397,433
2014

356,471
2013

Deliveries (thousand units)

1,037
2014

921
2013

+ 12.7
%

Rapid
Octavia
Octavia
Fabia
Rapid

228,175
397,433
397,433
162,954
228,175

124,112
356,471
356,471
196,597
124,112

Vehicle sales
Deliveries
(thousand units)
Deliveries
(thousand units)
Production
Vehicle
sales

796
1,037
1,037
1,050
796

719
921
921
932
719

10.8
+ 12.7
+ 10.8
12.7
12.6
+

Rapid
Yeti
Fabia
Fabia
Superb
Yeti

228,175
107,084
162,954
162,954
82,079
107,084

124,112
84,265
196,597
196,597
96,226
84,265

Vehicle
sales ( million)
Sales revenue
Production

796
11,758
1,050
1,050
817
11,758

719
10,324
932
932
522
10,324

+ 12.6
10.8
13.9
+
+
12.6
56.5
+ 13.9

Yeti
Citigo
Superb
Superb
Roomster
Citigo

107,084
41,974
82,079
82,079
29,983
41,974

84,265
42,971
96,226
96,226
31,425
42,971

11,758
7.0
817
817
7.0

10,324
5.1
522
522
5.1

+ 13.9
56.5

Citigo
Roomster
Roomster

41,974
1,049,682
29,983
29,983
1,049,682

42,971
932,067
31,425
31,425
932,067

7.0

5.1

1,049,682

932,067

Production
Operating
profit
Sales
revenue
( million)
Sales
revenue
(revenue
million)
as %
of sales
Operating
profit
Operating
profitrevenue
as % of sales
as % of sales revenue

Fabia
Fabia
Fabia

+ 56.5

DELIVERIES BY MARKET

inEpercent
D
LIVERIES BY MARKET
inEpercent
D
LIVERIES BY MARKET
in percent

Europe/Other markets 70.6 %

0.0 %
North America
Europe/Other markets 70.6 %
South America
0.1 %
0.0 %
%
North markets
America 70.6
Europe/Other
Asia-Pacfic 29.3 %
South
America
0.1
%
0.0 %
North America
Asia-Pacfic
%
South
America 29.3
0.1 %
Asia-Pacfic 29.3 %

29
29
29

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DIVISIONS
D I VSEAT
ISIONS

SEAT

SEATs positive trend continued in 2014. The Spanish brand enjoyed

SEATs
positive
trend
in 2014.
The Spanish
brand enjoyed
particular
success
in continued
the European
markets,
where demand
for the
particular success
in the models
European
markets,
where
demand for the
Leon family
was
especially
strong.
Leon family models was especially strong.

BUSI N ESS DEVELOPMENT

B
U S I Ncelebrated
E S S D E V E L OaP special
MENT
SEAT

anniversary in 2014: 30 years since the start of production of the Ibiza. With over 5 million

SEAT
celebrated
a special
anniversary
in 2014:
30 years
the start
of production
of the
Ibiza. Withhistory.
over 5 million
vehicles
sold worldwide
in four
generations,
the Ibiza
is thesince
best-selling
model
in the Spanish
automakers
vehicles
worldwide
in four
generations,
the
Ibiza
is X-PERIENCE
the best-selling
model in the
Spanishdrive
automakers
history.
SEATsold
added
the dynamic
Leon
Cupra and
the
Leon
permanent
four-wheel
version to
the successful
added
thethe
dynamic
Leonperiod.
CupraCustomers
and the Leon
X-PERIENCE
permanent
four-wheel
drive
version
to the
LeonSEAT
series
during
reporting
choosing
the five-door
version
of the Leon
and
the Leon
ST successful
estate can

Leon
during the reporting
period.
Customers
choosing
the five-door version of the Leon and the Leon ST estate can
opt forseries
an environmentally
friendly
natural
gas-powered
drive system.
opt for
an environmentally
friendly
natural gas-powered
drive
system.
Demand
for the Leon family
in particular
boosted sales
in 2014.
The SEAT brands deliveries to customers increased by
the Leonvehicles,
family inand
particular
boosted
sales infor
2014.
The SEAT
brands those
deliveries
to customers
increased
by
10.0Demand
% to 391for
thousand
production
numbers
the Leon
outstripped
for the
Ibiza for the
first time.
10.0
% to
391 thousand
vehicles,
for the
outstripped
Growth
hotspots
were Spain
(+ 14.5and
%),production
Germany (+numbers
10.4 %) and
the Leon
United
Kingdom (+those
16.8 for
%).the Ibiza for the first time.
Growth
were sold
Spain501
(+ 14.5
%), Germany
10.4
and the United
(+ 16.8
%).a year earlier. This figure
Thehotspots
SEAT brand
thousand
vehicles(+in
the%)
reporting
period,Kingdom
9.2 % more
than
The
SEAT
brand
sold
501
thousand
vehicles
in
the
reporting
period,
9.2
%
more
than
a year earlier. This figure
includes the Q3 produced for Audi.
includes
the Q3 increased
produced for
Audi.% to 395 thousand SEAT vehicles in 2014.
Production
by 11.9
Production increased by 11.9 % to 395 thousand SEAT vehicles in 2014.
SALES REVENUE AND EARNINGS
SThe
A L ESEAT
S R E Vbrand
ENUE A
N D E A R Nsales
I N G Srevenue of 7.7 billion in fiscal 2014, 12.0 % more than a year earlier. The operating result
recorded

The
SEAT brand
recorded
salesmillion.
revenueImproved
of 7.7 billion
fiscal 2014,
12.0 % more
year earlier.
The
narrowed
by 16.3
% to 127
mix,in
volume
and material
costs than
had aa positive
effect
onoperating
earnings result
while
narrowed
16.3 % to 127
million.
Improved
mix,
volume and
material
costs had
a positive
effectononsales
earnings
while
increased by
development
costs for
new products
had
an adverse
impact.
The brands
operating
return
was 1.6
%
increased
( 2.2 %). development costs for new products had an adverse impact. The brands operating return on sales was 1.6 %
( 2.2 %).

30 years
years
SEAT Ibiza
SEAT Ibiza
30
30

DIVISIONS
D I VSEAT
ISIONS
D I VSEAT
ISIONS

SEAT

PRODUCTION

S E AT B R A N D

PRODUCTION

S E AT B R A N D

PRODUCTION

S E AT B R A N D

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

Leon
Units

157,087
2014

114,568
2013

Deliveries (thousand units)

391
2014

355
2013

+ 10.0
%

Ibiza
Leon
Leon
Altea/Toledo
Ibiza

153,633
157,087
157,087
35,683
153,633

145,041
114,568
114,568
43,055
145,041

Vehicle sales
Deliveries
(thousand units)
Deliveries
(thousand units)
Production
Vehicle
sales

501
391
391
395
501

459
355
355
353
459

9.2
++10.0
++10.0
11.9
9.2

Ibiza
Mii
Altea/Toledo
Altea/Toledo
Alhambra
Mii

153,633
25,845
35,683

145,041
25,489
43,055

35,683
22,612
25,845

43,055
19,990
25,489

Vehicle
sales ( million)
Sales revenue
Production
Production
Operating
result
Sales
revenue
( million)

501
7,699
395
395
127
7,699

459
6,874
353
353
152
6,874

9.2
12.0
++11.9
+ 12.0
11.9
16.3

Mii
Exeo
Alhambra
Alhambra
Exeo

25,845

22,612
22,612
394,860

25,489
4,681
19,990
19,990
352,824
4,681

Sales
(revenue
million)
as %revenue
of sales
Operating
result
Operating
result
as % of sales revenue

7,699
1.6
127

6,874
2.2
152

394,860
394,860

4,681
352,824
352,824

as % of sales revenue

152
2.2
2.2

+ 16.3
12.0
+ 16.3

Exeo

127
1.6
1.6

Ibiza
Ibiza
Ibiza

DELIVERIES BY MARKET

inEpercent
D
LIVERIES BY MARKET
in
D Epercent
LIVERIES BY MARKET
in percent

31
31
31

Europe/Other markets
North America
Europe/Other markets
South America
North America
Europe/Other
markets
Asia-Pacific
South
North America
America
Asia-Pacific
South
America

94.4 %
5.5 %
94.4 %
0.1 %
5.5 %
94.4
0.0 %
%
0.1
5.5 %
%
0.0
%
0.1 %

Asia-Pacific

0.0 %

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DIVISIONS

Bentley
DDI IV
VI ISSI IOONNSS
Bentley
Bentley

In 2014, the Bentley brand continued on its successful trajectory, achieving record sales
In
In 2014,
on
trajectory,
2014, the
the Bentley
Bentley
brand continued
continued
on its
its successful
successful
trajectory,
achieving
record sales
sales
once brand
again.
Bentley
successfully
returned
to motorachieving
racing. record
once
once again.
again. Bentley
Bentley successfully
successfully returned
returned to
to motor
motor racing.
racing.

BUSI N ESS DEVELOPMENT

BB
UUSSI IN
The
launch
models
NEESSSS DDEof
EVVEnew
ELLOOPPM
MEENNTT played a large part in the past years sales success. In the reporting period, the Flying Spur with

launchof
ofnew
newengine
modelsand
played
alarge
largeand
partconvertible
inthe
thepast
pastversions
yearssales
sales
success.
Inthe
thereporting
The
The
launch
models
played
part
in
years
success.
In
period,
Spur
with
an eight-cylinder
the acoup
of the
Continental
GT V8 S all
made the
their
debut.
A sporty
reporting
period,
theFlying
Flying
Spur
with
an
eight-cylinder
and
coup
convertible
versions
of
Continental
GT
made
AAsporty
Speed
version of engine
the Mulsanne
became
available
in 2014,
offering
both improved
performance
and lower
fuel
an
eight-cylinder
engine
andthe
theflagship
coupand
and
convertible
versions
ofthe
the
Continental
GTV8
V8SSall
all
madetheir
theirdebut.
debut.
sporty
Speed
version
Mulsanne
flagship
became
available
in
offering
improved
performance
and
lower
consumption.
The
long
established
Bentley
brand
also returned
motor both
racing
in the reporting
period,
a
Speed
version of
of the
the
Mulsanne
flagship
became
available
in2014,
2014,to
offering
both
improved
performance
andsecuring
lower fuel
fuel
consumption.
long
Bentley
also
returned
to
racing
in
reporting
period,
securing
aa
historic victoryThe
at Silverstone,
its first
in the brand
UK
since
1930.
This win
inspired
a limited
of 300 for
Bentleys
GT3-R
consumption.
The
long established
established
Bentley
brand
also
returned
to motor
motor
racing
in the
therun
reporting
period,
securing
historic
victory
at
Silverstone,
its
first
the
since
1930.
sports coup,
the
with the
acceleration.
historic
victory
atmodel
Silverstone,
itsbrands
first in
infastest
the UK
UKever
since
1930. This
This win
win inspired
inspired aa limited
limited run
run of
of 300
300 for
for Bentleys
Bentleys GT3-R
GT3-R
sports
coup,
the
fastest
acceleration.
The
Bentley
brand
increased
its deliveries
in 2014
by 8.9 % year-on-year to 11,020 vehicles. The US market, which
sports
coup,
themodel
modelwith
withthe
thebrands
brands
fastestever
ever
acceleration.
The
deliveries
in
by
8.9
year-on-year
to
vehicles.
The
which
grew
by Bentley
1.3
% tobrand
3,003increased
units, wasits
once
again the
largest
for Bentley.
Growth
in China,
the
second-largest
The
Bentley
brand
increased
its
deliveries
in 2014
2014
bysingle
8.9%
%market
year-on-year
to 11,020
11,020
vehicles.
The US
US market,
market,
which
grew
by
to
was
again
the
for
Growth
in
the
market,
was%
dynamic.
Bentleys
there single
increased
by 20.4
% to 2,560
units.
The brand
also recorded
grew
by1.3
1.3
%particularly
to3,003
3,003units,
units,
wasonce
once
againsales
thelargest
largest
singlemarket
market
forBentley.
Bentley.
Growth
inChina,
China,
the second-largest
second-largest
market,in
was
particularly
dynamic.
Bentleys
sales there
there increased
increased by
by 20.4
20.4%
% to
to 2,560
2,560 units.
units. The
The brand
brand also
also recorded
recorded
market,
was
Bentleys
growth
theparticularly
Europe anddynamic.
Middle
East
regions.sales
growth
in
the
Europe
and
Middle
East
regions.
growth
in thesold
Europe
andvehicles
Middlein
East
Bentley
10,930
theregions.
reporting period, a 3.5 % increase year-on-year. The Continental GT and Flying Spur
Bentley
sold
10,930
vehicles
inthe
thereporting
reportingperiod,
period,aa3.5
3.5%
%increase
increaseyear-on-year.
year-on-year.The
TheContinental
ContinentalGT
GTand
andFlying
FlyingSpur
Spur
Bentley
sold
10,930
vehicles
in
models
were
well
received
by customers.
models
were
by
Production
atreceived
the Bentley
brand rose by 1.4 % year-on-year in 2014 to 11,033 vehicles.
models
werewell
well
received
bycustomers.
customers.
Production
Productionat
atthe
theBentley
Bentleybrand
brandrose
roseby
by1.4
1.4%
%year-on-year
year-on-yearin
in2014
2014to
to11,033
11,033vehicles.
vehicles.
SALES REVENUE AND EARNINGS
SS
AALLEESS RREEgenerated
VVEENNUUEE AANNsales
DD EEAARrevenue
Bentley
RNNI INNGGSS of 1.7 billion in the reporting period, up 4.0 % on the prior-year figure. The positive sales

Bentley
generated
revenue
1.7
billion
the
period,
up
%
the
The
trend
was
offset bysales
negative
mixof
exchange
effects,
with
operating
by 1.2figure.
% to 170
million.sales
The
Bentley
generated
sales
revenue
ofand
1.7
billionin
inrate
thereporting
reporting
period,
up4.0
4.0profit
%on
ongrowing
theprior-year
prior-year
figure.
Thepositive
positive
sales
was offset
offset by
by
negative
mix
and
exchange
rate effects,
effects, with
with operating
operating profit
profit growing
growing by
by 1.2
1.2%
% to
to 170
170 million.
million. The
The
trend
trend
was
exchange
operating
return
onnegative
sales wasmix
9.7and
%
(10.0
%). rate
operating
operatingreturn
returnon
onsales
saleswas
was9.7
9.7%
%(10.0
(10.0%).
%).

11 thousand
thousand
Vehicles delivered in 2014
Vehicles
Vehiclesdelivered
deliveredin
in2014
2014
32
32
32

DIVISIONS
D IBentley
VISIONS
D IBentley
VISIONS

Bentley

PRODUCTION

BENTLEY B RAND

PRODUCTION

BENTLEY B RAND

PRODUCTION

BENTLEY B RAND

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

Flying Spur
Units

4,556
2014

3,960
2013

Deliveries (units)

11,020
2014

10,120
2013

+ 8.9
%

Continental
Flying
Spur GT Coup

3,442
4,556

3,602
3,960

Vehicle sales
Deliveries
(units)

10,930
11,020

10,564
10,120

3.5
+ 8.9

Flying Spur GT Coup

Convertible
Continental

4,556
2,151
3,442

3,960
2,197
3,602

Deliveries
(units)
Production
Vehicle
sales

11,020
11,033
10,930

10,120
10,876
10,564

8.9
1.4
+ 3.5

Coup
Mulsanne GT Convertible
Continental

3,442
884
2,151

3,602
1,117
2,197

Vehicle
sales ( million)
Sales revenue
Production

10,930
1,746
11,033

10,564
1,679
10,876

3.5
4.0
+ 1.4

Continental GT Convertible
Mulsanne

2,151
11,033
884

2,197
10,876
1,117

Production
Operating
profit
Sales
revenue
( million)

11,033
170
1,746

10,876
168
1,679

1.4
1.2
+ 4.0

Mulsanne

884
11,033

1,117
10,876

Sales
(revenue
million)
as %revenue
of sales
Operating
profit

1,746
9.7
170

1,679
10.0
168

+ 1.2
4.0

11,033

10,876

Operating
profitrevenue
as % of sales

170
9.7

168
10.0

+ 1.2

as % of sales revenue

9.7

10.0

Mulsanne
Mulsanne
Mulsanne

DELIVERIES BY MARKET

inEpercent
D
LIVERIES BY MARKET
in
D Epercent
LIVERIES BY MARKET
in percent

Europe/Other markets
North America
Europe/Other markets
South America
North markets
America
Europe/Other
Asia-Pacific
South
North America
America
Asia-Pacific
South
America

37.6 %
28.8 %
37.6 %
0.1 %
28.8
%
37.6
33.5 %
%
0.1
%
28.8 %
33.5
%
0.1 %

Asia-Pacific 33.5 %

33
33
33

F U R T H E R I N F O R M A T I O N www.bentleymotors.com

F U R T H E R I N F O R M A T I O N www.bentleymotors.com

F U R T H E R I N F O R M A T I O N www.bentleymotors.com

DIVISIONS
D IPorsche
VISIONS

Porsche

The Porsche brand can look back on another successful year. It topped its
The Porsche
brandrecord
can look
back
onthe
another
successful
year. It
topped its
prior-year
sales,
and
new Macan
compact
SUV
prior-year
record
sales,
and
the
new
Macan
compact
SUV
proved particularly popular with customers.
proved particularly popular with customers.

BUSI N ESS DEVELOPMENT

Porsche
B
U S I N E Srecorded
S D E V E L Ostrong
P M E N Tgrowth in 2014. The start of series production of the Macan added particular impetus. Production
of the fifth
series led
to the
creation
of 1,500
newofjobs
at the
Leipzig plant.
Customer
deliveries
of the
first Porsche
918
Porsche
recorded
strong
growth
in 2014.
The start
series
production
of the Macan
added
particular
impetus.
Production
Spyder
hybrid
super
beganofin1,500
February
and
limitedplant.
run ofCustomer
918 vehicles
had been
out by
November.
of
the fifth
series
ledsports
to thecars
creation
new2014,
jobs at
theitsLeipzig
deliveries
of sold
the first
Porsche
918
In the second
of sports
2014 the
on the 2014,
new generation
of therun
Cayenne,
which was
thebyParis
Motor
Spyder
hybridhalf
super
carsspotlight
began inwas
February
and its limited
of 918 vehicles
hadlaunched
been soldatout
November.
Show.
The Cayenne
S E-Hybrid
is the first
plug-in
hybrid
in the premium
SUV segment.
The
Cayenne
E-Hybrid,
the
In
the second
half of 2014
the spotlight
was on
the new
generation
of the Cayenne,
which was
launched
atSthe
Paris Motor
Panamera
E-HybridSand
the 918
mean
thathybrid
Porscheinisthe
nowpremium
the first brand
in the premium
segment
to offer three
Show.
TheSCayenne
E-Hybrid
is Spyder
the first
plug-in
SUV segment.
The Cayenne
S E-Hybrid,
the
plug-in hybrid
models.and
A further
for Porsche
was its
return
top-flight
motor
sport in segment
the WorldtoEndurance
Panamera
S E-Hybrid
the 918highlight
Spyder mean
that Porsche
is now
theto
first
brand in
the premium
offer three
Championship
after an absence
over ten years.
plug-in
hybrid models.
A furtherofhighlight
for Porsche was its return to top-flight motor sport in the World Endurance
In the reporting
Porsche
delivered
190 thousand sports cars to customers and recorded year-on-year growth of
Championship
after period,
an absence
of over
ten years.
17.1In
%.the
The
US market,
which
grew delivered
by 11.1 %190
to 47,007
units,
wascars
once
the brands
largestyear-on-year
single market,
closely
reporting
period,
Porsche
thousand
sports
to again
customers
and recorded
growth
of
17.1
%. The
US market,
whichunits
grew(+by25.4
11.1
% to 47,007 units, was once again the brands largest single market, closely
followed
by China
with 46,931
%).
followed
by China
with
46,931brand
units increased
(+ 25.4 %).by 20.7 % to 187 thousand vehicles in the reporting period. The Macan was
Unit sales
by the
Porsche
Unit sales
the Porsche
increased by 20.7 % to 187 thousand vehicles in the reporting period. The Macan was
extremely
wellby
received
by thebrand
market.
Production
at the Porsche
brand rose by 22.5 % to 203 thousand vehicles in the reporting period. The Macan has now
extremely
well received
by the market.
joined
the Cayenne
and
Panamera
model
in%
being
produced
at the
Leipzig
plant.
Production
at the
Porsche
brand
roseseries
by 22.5
to 203
thousand
vehicles
in the
reporting period. The Macan has now
joined the Cayenne and Panamera model series in being produced at the Leipzig plant.
SALES REVENUE AND EARNINGS

brand
back
SThe
A L E Porsche
S REVENU
E A N Dcan
E A Rlook
NING
S

on a very successful year in 2014. Sales revenue increased by 20.1 % to 17.2 billion
(14.3
billion).
Volume
helped
operatingyear
profit
5.4 %
to 2.7
billion,
despite abyrise
in %
development
costs
The
Porsche
brand
caneffects
look back
on improve
a very successful
in by
2014.
Sales
revenue
increased
20.1
to 17.2 billion
for newbillion).
technologies
comprehensive
measures
to profit
reduce
emissions,
as well
as higher
fixed
costs fromcosts
the
(14.3
Volumeand
effects
helped improve
operating
by CO
5.42%
to 2.7 billion,
despite
a rise in
development
development
of the infrastructure
for the Macan.
The operating
on sales wasas15.8
%as
(18.0
%). fixed costs from the
for
new technologies
and comprehensive
measures
to reducereturn
CO2 emissions,
well
higher
The key figures
presented in this
comprise
Porschesreturn
Automotive
and
Financial
Services
development
of the infrastructure
forchapter
the Macan.
The operating
on sales
was
15.8 % (18.0
%).businesses.
The key figures presented in this chapter comprise Porsches Automotive and Financial Services businesses.

5 series
series
The Macan successfully expands the product range
The Macan successfully expands the product range
34
34

DIVISIONS
IIVS II SOIN
OSN S
D IDVPorsche

Porsche
DIIPorsche
D
VVIISSIIOONNSS
Porsche
Porsche

PRODUCTION

PORSCHE BRAND

OU
DCUTCI TOIN
ON
P RPORD

AD
ND
P OPROSRCSHC EH EB RBARN

PPRROODDUUCCTTIIOONN

PPOORRSSCCHHEE BBRRAANNDD

Units

2014

2013

2014

2013

Units
Units

2014
2014

2013
2013

2014
2014

2013
2013

%%

Cayenne
Units
Units

66,005
2014
2014

Cayenne
Cayenne
Macan
Cayenne
Cayenne
Macan
Macan
911
Coup/Cabriolet

66,005
66,005
59,363
66,005
66,005
59,363
59,363
31,590

Macan
Macan
911
Coup/Cabriolet
911
Coup/Cabriolet
Boxster/Cayman
911
Coup/Cabriolet
911
Coup/Cabriolet
Boxster/Cayman
Boxster/Cayman
Panamera

59,363
59,363
31,590
31,590
23,211
31,590
31,590
23,211
23,211
22,383

Boxster/Cayman
Boxster/Cayman
Panamera
Panamera
918
Spyder
Panamera
Panamera
918
Spyder
918
Spyder
918Spyder
Spyder
918

23,211
23,211
22,383
22,383
545
22,383
22,383
545
545
203,097
545
545
203,097
203,097
203,097
203,097

Macan
Macan
Macan
Macan

81,916
2013
2013

Deliveries (thousand units)

81,916
Deliveries
(thousand
units)
81,916
(thousand
units)
312 Deliveries
Vehicle
sales
81,916
Deliveries
(thousandunits)
units)
81,916
Deliveries
(thousand
312 Vehicle
Vehicle
sales
312
sales
29,751
Production
312 Production
Vehicle
sales ( million)
312
Vehicle
sales
29,751
Production
29,751
28,996
Sales
revenue
29,751
Production
29,751
Production
28,996 Sales
Sales
revenue
million)
28,996
revenue
((
million)
24,798
Operating
profit
28,996
Sales
revenue
(
million)
28,996
Sales
(
million)
24,798
Operating
profit
24,798
35 Operating
as %revenue
ofprofit
sales
revenue
24,798
Operating
profit
24,798
profit
sales
revenue
3535 Operating
asas
%%
ofof
sales
revenue
165,808
35
35
165,808
165,808
165,808
165,808

as%
%of
ofsales
salesrevenue
revenue
as

190
2014
2014

162
2013
2013

+ 17.1
%
%

190
190
187
190
190
187
187
203

162
162
155
162
162
155
155
166

+20.7
17.1
++17.1
+22.5
17.1
17.1
20.7
+++20.7

187
187
203
203
17,205
203
203
17,205
17,205
2,718
17,205
17,205
2,718
2,718
15.8

155
155
166
166
14,326
166
166
14,326
14,326
2,579
14,326
14,326
2,579
2,579
18.0

+20.1
20.7
20.7
22.5
+++22.5
++22.5
22.5
20.1
+ +20.1
5.4

2,718
2,718
15.8
15.8
15.8
15.8

2,579
2,579
18.0
18.0
18.0
18.0

20.1
+20.1
5.4
++5.4
5.4
++5.4

DELIVERIES BY MARKET
EI LVIEVREIRE ISE B
S YB YM M
Din
EDLpercent
A RAKREKTE T

in
inDD
percent
MAARRKKEETT
EEpercent
LLIIVVEERRIIEESS BBYY M
inpercent
percent
in

Europe/Other markets

37.3 %

Northmarkets
America
27.9
Europe/Other
markets 37.3
37.3
Europe/Other
%%%
South
America
1.5%%%
North
America 27.9
27.9
North
America
Europe/Other
markets
37.3
%
Europe/Other
markets
37.3
%
Asia-Pacific
33.3
South
America 1.5
1.5
%
South
America
%%
North
America
27.9
%
North
America
27.9
%
Asia-Pacific
33.3
%
Asia-Pacific
%%
South
America 33.3
1.5
%
South
America
1.5
Asia-Pacific 33.3
%
33.3%
Asia-Pacific

35
3535
35
35

F U R T H E R I N F O R M A T I O N www.porsche.com

i i

RA
MTAI TOIN
O Nwww.porsche.com
www.porsche.com
F UFRUTRHTEHRE IRNIFNOFROM

ii

MAATTIIOONN www.porsche.com
www.porsche.com
FFUURRTTHHEERR IINNFFOORRM

DIVISIONS

VolkswagenDDICommercial
Vehicles
IVVIISSIIOONNSS
VolkswagenCommercial
CommercialVehicles
Vehicles
Volkswagen

Volkswagen Commercial Vehicles consolidated its position as a customer-centric mobility

Volkswagen
Commercial
Vehicles
consolidated
its
position
as
mobility
Volkswagen
Commercial
Vehicles
consolidated
itsits
position
as aa customer-centric
customer-centric
mobility
service provider
in 2014.
The brand
presented
wide range
of solutions at the
IAA
service
in
The
presented
its
wide
range
solutions
service provider
provider
in 2014.
2014.
The brand
brand
presented
itsprofit
widewas
range
ofsignificantly.
solutions at
at the
the IAA
IAA
Commercial
Vehicles
show.
Operating
upof
Commercial
Commercial Vehicles
Vehicles show.
show. Operating
Operating profit
profit was
was up
up significantly.
significantly.

BUSI N ESS DEVELOPMENT

AtUUSthe
Commercial
show in September 2014, Volkswagen Commercial Vehicles demonstrated its expertise as
BB
TT
SIINNEIAA
ESSSS D
DEEVVEELLOOPPM
MEENNVehicles
a customer-centric
mobility
service
offering
a unique
variety
of passenger
and goods
transport
mobility
At
the
Vehicles
show
in
2014,
Volkswagen
Commercial
Vehicles
demonstrated
its
expertise
as
At
theIAA
IAA Commercial
Commercial
Vehicles
showprovider
inSeptember
September
2014,
Volkswagen
Commercial
Vehicles
demonstrated
itsand
expertise
as
tailored to
the needs
of different
customers
sectors.
The of
brand
provided
a glimpse
into the and
wide-ranging
aasolutions,
customer-centric
mobility
service
provider
offering
variety
and
goods
customer-centric
mobility
service
provider
offering aand
a unique
unique
variety
of passenger
passenger
and
goods transport
transport
and mobility
mobility
application
potential
offered
byof
next generation
thesectors.
T series
(Multivan/Transporter)
with into
the the
TRISTAR
concept
solutions,
tailored
to
needs
different
customers
and
The
brand
solutions,
tailored
to the
the
needs
ofthe
different
customersof
and
sectors.
The
brand provided
provided aa glimpse
glimpse
into
the wide-ranging
wide-ranging
vehicle, an all-terrain
pickup by
truck
mobile
office with
permanent
four wheel drive. Its market
was announced
application
potential
next
generation
of
TT series
with
the
concept
application
potential offered
offered
by the
theand
next
generation
of the
the
series (Multivan/Transporter)
(Multivan/Transporter)
withlaunch
the TRISTAR
TRISTAR
concept
for the following
year.pickup
The brands
iconic
model
haswith
beenpermanent
sold since four
1950;
already
in its
generation,
it continues
to
vehicle,
an
truck
mobile
office
drive.
Its
market
launch
announced
vehicle,
anall-terrain
all-terrain
pickup
truckand
and
mobile
office
with
permanent
fourwheel
wheel
drive.
Itsfifth
market
launchwas
was
announced
enjoy
demand.
InThe
addition,
theiconic
e-loadmodel
up! was
launched
in the
market
a smallin
commercial
vehicle suitable
for daily
for
the
following
year.
brands
has
been
since
1950;
its
itit continues
to
for
thehigh
following
year.
The
brands
iconic
model
has
been sold
sold
since
1950;asalready
already
in
its fifth
fifth generation,
generation,
continues
to
delivery
use
in urban
With zero
emissions,
a payload
of 285as
kilograms
and 990 liters
of loading
space,
it is
enjoy
high
demand.
In
addition,
up!
launched
in
aasmall
vehicle
suitable
for
enjoy
high
demand.
Inenvironments.
addition,the
thee-load
e-load
up!was
was
launched
inthe
themarket
market
as
smallcommercial
commercial
vehicle
suitable
fordaily
daily
the entry-level
model
for
business customers
switching
to e-mobility.
delivery
use
With
emissions,
aapayload
delivery
usein
inurban
urbanenvironments.
environments.
Withzero
zero
emissions,
payloadof
of285
285kilograms
kilogramsand
and990
990liters
litersof
ofloading
loadingspace,
space,ititisis
In the reporting
period,
the brands
global
deliveries
to customers declined by 3.4 % year-on-year to 447 thousand
the
model
customers
switching
to
theentry-level
entry-level
modelfor
forbusiness
business
customers
switching
toe-mobility.
e-mobility.
In the
theThis
reporting
period,
the
brands
global
deliveries
to customers
customers
declined
by
3.4
%
year-on-year
toof
447
thousand
vehicles.
was due
in partthe
to the
end of
production
of the
Kombi,
known
as theby
T2,
in%
Brazil
at the end
2013.
VolksIn
reporting
period,
brands
global
deliveries
to
declined
3.4
year-on-year
to
447
thousand
vehicles.
This
was
due
in
part
to
the
end
of
production
of
the
Kombi,
known
as
the
T2,
in
Brazil
at
the
end
of
2013.
Volkswagen
Commercial
Vehicles
experienced
positive
growth
particularly
in
Western
Europe
and
in
the
Asia-Pacific
region.
vehicles. This was due in part to the end of production of the Kombi, known as the T2, in Brazil at the end of 2013. VolksUnit
sales increased
by 1.5
% to a totalpositive
of 442 thousand
vehicles last
year.
wagen
Commercial
Vehicles
experienced
growth
in
wagen
Commercial
Vehicles
experienced
positive
growthparticularly
particularly
inWestern
WesternEurope
Europeand
andin
inthe
theAsia-Pacific
Asia-Pacificregion.
region.
Production
at the Volkswagen
brand
declined
by 5.1 % to 396 thousand vehicles in 2014. The
Unit
sales
by
aatotal
thousand
vehicles
last
Unit
salesincreased
increased
by1.5
1.5%
%to
toCommercial
totalof
of442
442Vehicles
thousand
vehicles
lastyear.
year.
Crafter
produced
a contractual
plants
is not included
in theseby
figures.
goalthousand
is for thevehicles
next generation
the
Production
at
the
Volkswagen
Commercial
Vehicles
brand
5.1
to
in
Production
atat
the
Volkswagenpartners
Commercial
Vehicles
brand declined
declined
by
5.1%
%The
to 396
396
thousand
vehicles
in 2014.
2014.ofThe
The
to roll off at
the
production
line
at a new
Volkswagen
Commercial
plant
in Poland
from
In Hanover,
Crafter
plants
isisnot
in
figures.
isisfor
next
generation
of
Crafterproduced
produced
ataacontractual
contractualpartners
partners
plants
notincluded
included
inthese
theseVehicles
figures.The
Thegoal
goal
forthe
the
next2016.
generation
ofthe
the
169 thousand
(153
ofaathe
and Transporter
models
as well
as2016.
the Amarok
were
Crafter
to
the
production
line
new
Volkswagen
Vehicles
in
from
In
Crafter
to roll
roll off
off
thethousand)
productionunits
line at
at
newCaravelle/Multivan
Volkswagen Commercial
Commercial
Vehicles plant
plant
in Poland
Poland
from
2016.
In Hanover,
Hanover,
manufactured,
and in
Poznan 176
thousand
(170 thousand) Caddy
T5 units. Production
in South
America
169
thousand
thousand)
units
of
and
Transporter
models
well
Amarok
were
169
thousand (153
(153
thousand)
units
of the
the Caravelle/Multivan
Caravelle/Multivan
andand
Transporter
models as
as declined
well as
as the
the
Amarok
were
due to market-related
the
end of T2
production.
manufactured,
and
Poznan
176
thousand
(170
thousand)
manufactured,
and in
infactors
Poznanand
176
thousand
(170
thousand) Caddy
Caddy and
and T5
T5 units.
units. Production
Production declined
declined in
in South
South America
America
due
dueto
tomarket-related
market-relatedfactors
factorsand
andthe
theend
endof
ofT2
T2production.
production.
SALES REVENUE AND EARNINGS

Vehicles
SSVolkswagen
AALLEESS RREEVVEENNCommercial
UUEE AANNDD EEAARRNN
IINNGGSS

generated sales revenue of 9.6 billion (9.4 billion) in fiscal year 2014. Positive mixrelated factors
and material
costgenerated
savings saw
operating
increase
by 12.5
% year-on-year
to2014.
504Positive
million.
The
Volkswagen
Commercial
Vehicles
sales
revenue
of
billion
billion)
in
Volkswagen
Commercial
Vehicles
generated
sales
revenueprofit
of 9.6
9.6
billion (9.4
(9.4
billion)
in fiscal
fiscal year
year
2014.
Positive mixmixoperating
return
on sales
rosecost
from
4.8 % tosaw
5.3 %
in the reporting
period. by
related
factors
and
material
operating
profit
related
factors
and
material
cost savings
savings
saw
operating
profit increase
increase
by 12.5
12.5%
% year-on-year
year-on-year to
to 504
504million.
million. The
The
operating
operatingreturn
returnon
onsales
salesrose
rosefrom
from4.8
4.8%
%to
to5.3
5.3%
%in
inthe
thereporting
reportingperiod.
period.

504 million
million
Operating profit in 2014
Operating
Operatingprofit
profitin
in2014
2014
36
36
36

DIVISIONS

VolkswagenDCommercial
Vehicles
IVISIONS
Volkswagen
Vehicles
DDI Commercial
VI VI SI SI OI ONNS S
Volkswagen
VolkswagenCommercial
CommercialVehicles
Vehicles

PRODUCTION*

V O L K SWA G E N C O M M E R C I A L V E H I C L E S B R A N D

PRODUCTION*

V O L K SWA G E N C O M M E R C I A L V E H I C L E S B R A N D

P PR ROODDUUC CT TI OI ONN* *

VV
OOL K
OOMMMME ER RC CI AI AL LVVE EHHI CI CL EL ES SB BR RAANNDD
L KSWA
SWAGGE ENNC C

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

Caravelle/Multivan, Kombi
Units
Units

94,336
2014
2014

107,033
2013
2013

Deliveries (thousand units)*

447
2014
2014

462
2013
2013

3.4
%%

Transporter
Caravelle/Multivan,
Kombi
Caravelle/Multivan,
Kombi
Caravelle/Multivan,
Kombi
Caddy Kombi
Transporter

83,947
94,336
94,336
94,336
76,564
83,947

69,880
107,033
107,033
107,033
77,792
69,880

Vehicle sales
Deliveries
(thousand units)*
Deliveries
(thousand
Deliveries
(thousandunits)*
units)*
Production*
Vehicle
sales

442
447
447
447
396
442

436
462
462
462
418
436

+ 3.4
1.5
+3.4
3.4
5.1
1.5

Transporter
Transporter
Caddy
Kombi
Caddy
Kombi
Kombi
Amarok
Caddy

83,947
83,947
71,535
76,564
76,564
76,564
69,695
71,535

69,880
69,880
71,069
77,792
77,792
77,792
91,739
71,069

Vehicle
sales
Vehicle
sales ( million)
Sales revenue
Production*

442
442
9,577
396
396
396
504
9,577

436
436
9,370
418
418
418
448
9,370

++1.5
1.5
2.2
5.1

Caddy
Caddy
Amarok

71,535
71,535
396,077
69,695

71,069
71,069
417,513
91,739

Amarok
Amarok

69,695
69,695
396,077

91,739
91,739
417,513

9,577
9,577
5.3
504
504
504
5.3

9,370
9,370
4.8
448
448
448
4.8

5.3
5.3

4.8
4.8

* The Saveiro model is reported in the Volkswagen Passenger

Cars brand retrospectively
396,077
417,513
396,077
417,513
as of January 1, 2013.
* The Saveiro model is reported in the Volkswagen Passenger Cars brand retrospectively
as of
January 1, 2013.
* * The
TheSaveiro
Saveiromodel
modelisisreported
reportedininthe
theVolkswagen
VolkswagenPassenger
PassengerCars
Carsbrand
brandretrospectively
retrospectively
asasofofJanuary
January1,1,2013.
2013.

Caddy
Caddy
Caddy

Production*
Production*
Operating
profit
Sales
revenue
( million)
Sales
((revenue
million)
Sales
million)
asrevenue
%revenue
of sales
Operating
profit
Operating
Operating
profitrevenue
as % ofprofit
sales
asas%%ofofsales
salesrevenue
revenue

5.1
++5.1
12.5
2.2
+
2.2
++2.2
12.5
++12.5
12.5

DELIVERIES BY MARKET

inEpercent
D
LIVERIES BY MARKET
Din
ILVI VE ER RI EI S
DE ELpercent
E SB BY YMMAAR RKKE ET T

ininpercent
percent

Europe/Other markets
North America
Europe/Other markets
South America
Northmarkets
America
Europe/Other
Europe/Other
markets
Asia-Pacific
South
America
North
NorthAmerica
America
Asia-Pacific
South
America
South
America

84.4 %
1.3 %
84.4 %
9.2 %
1.3%%
%
84.4
84.4
5.1 %
9.2
1.3
1.3%%
%
5.1
9.2
9.2%%
%

Asia-Pacific
Asia-Pacific 5.1
5.1%%

37
37
3737

F U R T H E R I N F O R M A T I O N www.volkswagen-commercial-vehicles.com

F U R T H E R I N F O R M A T I O N www.volkswagen-commercial-vehicles.com

ii

FU
RR
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ER
FO
RR
MM
AA
T ITOI O
NN www.volkswagen-commercial-vehicles.com
FU
TH
E RI NI N
FO
www.volkswagen-commercial-vehicles.com

D
D
V
O
N
DIIIIV
VIIIISSSSIIIIO
ON
NSSSS
D
V
O
N

Scania
D IScania
VISIONS
Scania

Scania
Scania presented
presented numerous
numerous innovations
innovations in
in 2014
2014 that
that enable
enable customers
customers to
to reduce
reduce
Scania
presented
numerous
innovations
in
2014
that
enable
customers
to
reduce
their
their operating
operating costs
costs and
and hence
hence increase
increase profitability.
profitability. The
The service
service business
business reached
reached
their operating costs and hence increase
profitability.
The
service
business
reached
aa record
high.
record high.
a record high.

B
U
N
D
V
O
M
N
USSSSIIIIN
NEEEESSSSSSSS D
DEEEEV
VEEEELLLLO
OP
MEEEEN
NTTTT
BBBU
U
N
D
V
O
PPPM
M
N

The
B
U S ISwedish
N
E S S D E Vcommercial
E L O P M E N T vehicle
The
Swedish
commercial
vehicle manufacturer
manufacturer unveiled
unveiled several
several new
new variants
variants of
of its
its comprehensive
comprehensive range
range of
of Euro
Euro 6
The
Swedish
commercial
vehicle
manufacturer
unveiled
several
new
variants
of
its
comprehensive
range
of
Euro
66
engines
at
IAA
2014
offering
significantly
lower
consumption
hence
lower
The
Swedish
vehicleVehicles
manufacturer
unveiled
several
new variants
of fuel
its
range
of Euro
6
engines
at the
thecommercial
IAA Commercial
Commercial
Vehicles
2014 show,
show,
offering
significantly
lower
fuelcomprehensive
consumption and
and
hence
lower
engines
at
the
IAA
Commercial
Vehicles
2014
show,
offering
significantly
lower
fuel
consumption
and
hence
lower
ongoing
and
greater
environmental
comprehensive
engine
also
drivetrains
that
engines
at the
IAA
Commercial
Vehiclescompatibility.
2014 show, The
offering
significantly
lowerprogram
fuel consumption
and
hence lower
ongoingcosts
costs
and
greater
environmental
compatibility.
The
comprehensive
engine
program
alsoincludes
includes
drivetrains
that
ongoing
costs
and
greater
environmental
compatibility.
The
comprehensive
engine
program
also
includes
drivetrains
that
can
by
various
alternative
such
or
the
brand
its
hybrid
ongoing
costs and
compatibility.
The comprehensive
engine
also includes
that
canbe
bepowered
powered
bygreater
variousenvironmental
alternativefuels
fuels
suchas
asbiodiesel
biodiesel
orgas.
gas.In
Inaddition,
addition,
theprogram
brandunveiled
unveiled
itsown
owndrivetrains
hybridsystem
system
can
be
powered
by
various
alternative
fuels
such
as
biodiesel
or
gas.
In
addition,
the
brand
unveiled
its
own
hybrid
system
for
The
runs
on
or
The
brand
rounded
off
its
at
can
be powered
by various
alternative
fuels
as biodiesel
gas. In
addition,
brand unveiled
itsshow
own by
hybrid
system
forbuses.
buses.
TheCitywide
Citywide
runs
oneither
eitherdiesel
dieselsuch
orbiodiesel.
biodiesel.
Theor
brand
rounded
offthe
itsappearance
appearance
atthe
the
show
bypresenting
presenting
for
buses.
The
Citywide
runs
on
either
diesel
or
biodiesel.
The
brand
rounded
off
its
appearance
at
the
show
by
presenting
new
service
offerings,
to
focus
complete
packages
for
The
Citywidesuch
runsas
ondriver
eithertraining.
diesel orIt
The
rounded
off its
appearance
at the tailored
show
by to
presenting
newbuses.
service
offerings,
such
as
driver
training.
It continues
continues
tobrand
focus on
on providing
providing
complete
packages
tailored
to meet
meet its
its
new
service
offerings,
such
as
driver
training.
Itbiodiesel.
continues
to
focus
on
providing
complete
packages
tailored
to
meet
its
customers
business
new
servicetransport
offerings,
such asrequirements.
driver training. It continues to focus on providing complete packages tailored to meet its
customers
transport
business
requirements.
customers
transport
business
requirements.
The
figures
in
customers
business requirements.
The key
keytransport
figures presented
presented
in this
this chapter
chapter comprise
comprise Scanias
Scanias Trucks
Trucks and
and Buses,
Buses, Industrial
Industrial and
and Marine
Marine Engines,
Engines, and
and
The
key
figures
presented
in
this
chapter
comprise
Scanias
Trucks
and
Buses,
Industrial
and
Marine
Engines,
and
Financial
Services
businesses.
The key
figures
presented in this chapter comprise Scanias Trucks and Buses, Industrial and Marine Engines, and
Financial
Services
businesses.
Financial
Services
businesses.
In
pull-forward
effects
Financial
Services
businesses.
In Europe,
Europe,
pull-forward
effects related
related to
to the
the introduction
introductionof
of the
the Euro
Euro 6
emission standard
standard on
on January
January 1,
1, 2014
2014 had
had aaa
In
Europe,
pull-forward
effects
related
to
the
introduction
of
the
Euro
66 emission
emission
standard
on
January
1,
2014
had
negative
effect
on
the
business;
a
downward
trend
was
also
experienced
in
the
South
American
commercial
vehicle
market.
In
Europe,
pull-forward
effects
related
to
the
introduction
of
the
Euro
6
emission
standard
on
January
1,
2014
had
a
negativeeffect
effecton
onthe
thebusiness;
business;aadownward
downwardtrend
trendwas
wasalso
alsoexperienced
experiencedin
inthe
theSouth
SouthAmerican
Americancommercial
commercialvehicle
vehiclemarket.
market.
negative
The
political
crisis
in
Russia
also
had
a
negative
impact.
negative
effect
on
the
business;
a
downward
trend
was
also
experienced
in
the
South
American
commercial
vehicle
market.
Thepolitical
politicalcrisis
crisisin
inRussia
Russiaalso
alsohad
hadaanegative
negativeimpact.
impact.
The
orders
received
rose
TheDespite
politicalthis,
crisis
in Russia
also by
had
a negative
impact.
Despite
this,
orders
received
byScania
Scania
roseby
by2.5%
2.5%to
to83
83thousand
thousandvehicles.
vehicles.The
Thebrands
brandsperformance
performancewas
wasboosted
boostedby
by
Despite
this,
orders
received
by
Scania
rose
by
2.5%
to
83
thousand
vehicles.
The
brands
performance
was
boosted
by
its
broad
expertise
in
Euro
6
engines,
its
many
years
of
experience
with
consumption-optimized
vehicles
and
its
wide
range
Despite
this,
orders
received
by
Scania
rose
by
2.5%
to
83
thousand
vehicles.
The
brands
performance
was
boosted
by
its
broad
expertise
in
Euro
6
engines,
its
many
years
of
experience
with
consumption-optimized
vehicles
and
its
wide
range
its broad expertise in Euro 6 engines, its many years of experience with consumption-optimized vehicles and its wide range
of
drive
systems.
Scania
80
(80
thousand)
worldwide,
on
its
broad expertise
Euro 6 In
engines,
manydelivered
years of experience
with
consumption-optimized
vehicles and
its wide range
of alternative
alternative
drivein
systems.
In 2014,
2014,its
Scania
delivered
80 thousand
thousand
(80
thousand) vehicles
vehicles to
to customers
customers
worldwide,
on aaa
of
alternative
drive
systems.
In
2014,
Scania
delivered
80
thousand
(80
thousand)
vehicles
to
customers
worldwide,
on
level
with
the
previous
year.
The
brand
recorded
growth
in
the
Asian
markets
(+26.9%)
and
sales
doubled
in
the
Middle
of
alternative
drive
systems.
In
2014,
Scania
delivered
80
thousand
(80
thousand)
vehicles
to
customers
worldwide,
on
level
with
the
previous
year.
The
brand
recorded
growth
in
the
Asian
markets
(+26.9%)
and
sales
doubled
in
the
Middle
level with the previous year. The brand recorded growth in the Asian markets (+26.9%) and sales doubled in the Middlea
East.
sales
especially
in
to
Bus
level
with
the previous
year.
Thesharply
brand recorded
in America,
the Asiandue
markets
(+26.9%) andfactors.
sales doubled
in thevolumes
Middle
East. By
By contrast,
contrast,
sales dropped
dropped
sharply
especiallygrowth
in South
South
America,
due
to market-related
market-related
factors.
Bus delivery
delivery
volumes
East.
By
contrast,
sales
dropped
sharply
especially
in
South
America,
due
to
market-related
factors.
Bus
delivery
volumes
declined
by
to
thousand
units.
Demand
for
services
and
parts,
the
East.
By contrast,
sharply
South
America,
due to market-related
Bus hand,
delivery
volumes
declined
by 1.3%
1.3%sales
to 7
thousand
units.especially
Demandin
for
services
and replacement
replacement
parts, on
onfactors.
the other
other
hand, increased
increased
declined
by
1.3%
to
77dropped
thousand
units.
Demand
for
services
and
replacement
parts,
on
the
other
hand,
increased
significantly.
Scanias
financial
encouraging.
declined
by The
1.3%
to 7 recorded
thousand
units.
Demand
for services
serviceswas
andalso
replacement
parts, on the other hand, increased
significantly.
Thegrowth
growth
recordedby
by
Scanias
financial
services
was
also
encouraging.
significantly.
The
growth
recorded
by
Scanias
financial
services
was
also
encouraging.
At
(83
vehicles,
Scania
brands
production
in
significantly.
The growth
recorded by
Scaniasthe
financial
also encouraging.
At 82
82 thousand
thousand
(83 thousand)
thousand)
vehicles,
the
Scaniaservices
brandswas
production
in fiscal
fiscal year
year 2014
2014 was
was on
on aaa level
level with
with the
the
At
82
thousand
(83
thousand)
vehicles,
the
Scania
brands
production
in
fiscal
year
2014
was
on
level
with
the
previous
(0.8%).
This
figure
7
buses.
At 82year
thousand
(83
thousand)
vehicles,
the Scania
brands production in fiscal year 2014 was on a level with the
previous
year
(0.8%).
This
figureincluded
included
thousand
buses.
previous
year
(0.8%).
This
figure
included
77thousand
thousand
buses.
previous year (0.8%). This figure included 7 thousand buses.
SSSSA
A
V
N
U
A
N
D
A
N
N
G
ALLLLEEEESSSS R
VEEEEN
NU
UEEEE A
AN
ND
D EEEEA
AR
NIIIIN
NG
GSSSS
A
RRREEEEV
V
N
U
A
N
D
A
RRRN
N
N
G

At
sales
SAt
A10.4
L10.4
E S R Ebillion,
V E N U E the
Athe
N DScania
E A R N Ibrands
N
GS
billion,
Scania
brands
salesrevenue
revenue in
in 2014
2014remained
remained at
at the
the prior-year
prior-year level.
level. Operating
Operatingprofit
profitamounted
amountedto
to
At
10.4
billion,
the
Scania
brands
sales
revenue
in
2014
remained
at
the
prior-year
level.
Operating
profit
amounted
to
955
million
(974
The
demand
services
had
effect,
slight
decline
At
10.4
billion,
themillion).
Scania brands
sales revenue
infor
2014
remained
the prior-year
level.the
Operating
profit amounted
to
955
million
(974
million).
Theincreased
increased
demand
for
services
hadaaaatpositive
positive
effect,while
while
the
slightyear-on-year
year-on-year
decline
955
million
(974
million).
The
increased
demand
for
services
had
positive
effect,
while
the
slight
year-on-year
decline
in
had
aaanegative
impact.
The
operating
return
sales
was
in
reporting
period,
compared
with
955
million
(974
million).
The increased
demand
for services
had
a positive
effect,
while
the slight
year-on-year
decline
involumes
volumes
had
negative
impact.
Thebrands
brands
operating
returnon
on
sales
was9.2%
9.2%
inthe
the
reporting
period,
compared
with
in
volumes
had
negative
impact.
The
brands
operating
return
on
sales
was
9.2%
in
the
reporting
period,
compared
with
9.4%
in
the
previous
year.
in
volumes
had
a
negative
impact.
The
brands
operating
return
on
sales
was
9.2%
in
the
reporting
period,
compared
with
9.4%in
inthe
theprevious
previousyear.
year.
9.4%
9.4% in the previous year.

80
80 thousand
thousand
Vehicles
Vehiclessold
soldin
in 2014
2014
Vehicles sold in 2014
38
38
38
38
38

DIVISIONS
VISIONS
D IScania

Scania

PRODUCTION

SCANIA BRAND

PRODUCTION

SCANIA BRAND

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

75,287

75,957

Orders received

Trucks
Trucks
Buses

75,287
6,921

75,957
6,897

(thousand
units)
Orders received

83

81

+ 2.5

Buses

6,921
82,208

6,897
82,854

(thousand units)
Deliveries

83
80

81
80

+ 0.8
2.5

82,854

Deliveries
Vehicle
sales

80

80

0.8

Vehicle sales
Production

80
82

80
83

0.8

Production
Sales
revenue ( million)

82
10,381

83
10,360

0.8
+ 0.2

Sales revenue
( million)
Operating
profit

82,208

Streamline
Streamline

10,381
955

10,360
974

0.2
+ 1.9

profitrevenue
Operating
as % of sales

955
9.2

974
9.4

1.9

as % of sales revenue

9.2

9.4

DELIVERIES BY MARKET

in
D Epercent
LIVERIES BY MARKET
in percent
e cent

39
39

Europe/Other markets
North markets
America
Europe/Other
South
North America
America
Asia-Pacific
South
America

67.7 %
1.1 %
%
67.7
22.3
1.1 %
%
8.9 %
%
22.3

Asia-Pacific

8.9 %

F U R T H E R I N F O R M A T I O N www.scania.com

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DIVISIONS
D
V
O
N
D
V
O
N
D
IIIIISSSSSIIIIIO
DIIIIIV
VMAN
ON
NSSSSS
D
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MAN
MAN
MAN

In 2014, MAN again launched new technologies to reduce fuel consumption in

In 2014,
2014,
MAN again
again
launched
new technologies
technologies
to
reduce
fuel
consumption
in
In
MAN
launched
new
reduce
commercial
vehicles
and marine
engines. Theto
new
TGX fuel
D38 consumption
truck and the in
commercial
vehicles
and
marine
engines.
The
new
TGX
D38
truck
and
the
commercial
vehicles
andCity
marine
engines.
The new
new
TGX
D38
truck
and the
the
commercial
vehicles
and
marine
engines.
The
D38
truck
and
natural
gas-powered
Lions
GL CNG
articulated
busTGX
were
well
received
at the
natural
gas-powered
Lions
City
GL
CNG
articulated
bus
were
well
received
at the
the
natural
gas-powered
Lions
City
GL
CNG
articulated
bus
were
well
received
at
IAA Commercial Vehicles show. The 175D high-speed engine was unveiled at the
SMM
IAA Commercial
Commercial Vehicles
Vehicles show.
show.
The
175D
high-speed
engine
was
unveiled
at
the
SMM
IAA
The
175D
high-speed
engine
was
unveiled
at
the
SMM
maritime trade fair in Hamburg.
maritime trade
trade fair
fair in
in Hamburg.
Hamburg.
maritime

BUSI N ESS DEVELOPMENT

U
N
D
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U
N
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LLO
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EEEEESSSSSSSSSS D
EEEEEN
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vehicle
and engine technologies for increased fuel efficiency at the
B
U
N
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IAA Commercial Vehicles show in

MAN
launched
new
and
for
fuel
efficiency
at
IAA
Commercial
Vehicles
show
MANreporting
launchedperiod.
newvehicle
vehicle
andengine
engine
technologies
forincreased
increased
fuel
efficiency
atthe
thethat
IAAis
Commercial
Vehicles
showin
in
the
The highlight
wastechnologies
the global premiere
of the
TGX
D38, a truck
ideally suited
to demanding
MAN
launched
new
vehicle
and
engine
technologies
for
increased
fuel
efficiency
at
the
IAA
Commercial
Vehicles
show
in
the
The
global
of
aaatruck
is
to
demanding
thereporting
reportingperiod.
period.
The
highlight
wasthe
the
globalpremiere
premiere
ofthe
theTGX
TGXD38,
D38,six-cylinder
truckthat
thatengine
isideally
ideally
suited
tooff
demanding
transportation
tasks. At
itshighlight
heart
is a was
newly
developed,
extremely
fuel-efficient
thatsuited
rounds
the upper
the
reporting
period.
The
highlight
was
the
global
premiere
of
the
TGX
D38,
truck
that
is
ideally
suited
to
demanding

transportation
tasks.
is
newly
developed,
extremely
six-cylinder
engine
off
the
transportation
tasks.
Atits
itsheart
heart
isaaaThe
newly
developed,
extremely
fuel-efficient
six-cylinder
enginethat
that
rounds
offreceived
theupper
upper
end
of MANs Euro
6 At
engine
range.
MAN
Lions City
GL CNGfuel-efficient
natural gas-powered
articulated
busrounds
was well
as
transportation
tasks.
At
its
heart
is
newly
developed,
extremely
fuel-efficient
six-cylinder
engine
that
rounds
off
the
upper
end
of
Lions
GL
gas-powered
articulated
was
well
received
endextremely
ofMAN
MANs
sEuro
Euro666engine
enginerange.
range.The
TheMAN
MANmobility
LionsCity
City
GLCNG
CNG
natural
gas-powered
articulated
bus
wasYear
well2015
received
as
an
low-emission,
climate-friendly
solution
fornatural
city traffic,
and was named
Busbus
of the
by as
an
end
of
MAN
s
Euro
engine
range.
The
MAN
Lions
City
GL
CNG
natural
gas-powered
articulated
bus
was
well
received
as
an
climate-friendly
for
traffic,
and
Bus
the
Year
by
anextremely
extremelylow-emission,
low-emission,
climate-friendly
mobility
solution
forcity
city
traffic,innovative
andwas
wasnamed
named
Bus
ofthe
thereporting
Year2015
2015
byan
an
international
jury. The Power
Engineeringmobility
businesssolution
area also
unveiled
products
inof
period,
an
extremely
low-emission,
climate-friendly
mobility
solution
for
city
traffic,
and
was
named
Bus
of
the
Year
2015
by
an
international
jury.
The
business
also
innovative
international
jury.efficient
The Power
Power
Engineering
business
area
also unveiled
unveiled
innovative products
products in
in the
the reporting
reporting period,
period,
including
the new
175DEngineering
high-speed engine
forarea
commercial
shipping.
international
jury.
The
Power
Engineering
business
area
also
unveiled
innovative
products
in
the
reporting
period,
including
the
new
efficient
175D
high-speed
engine
for
commercial
shipping.
including
thefigures
newefficient
efficient
175Din
high-speed
engine
forcommercial
commercial
shipping.
The key
presented
this chapter
comprise
the Trucks
and Buses businesses and the Power Engineering
including
the
new
175D
high-speed
engine
for
shipping.
The
figures
The key
key
figures presented
presented in
in this
this chapter
chapter comprise
comprise the
the Trucks
Trucks and
and Buses
Buses businesses
businesses and
and the
the Power
Power Engineering
Engineering
business
area.
The
key
figures
presented
in
this
chapter
comprise
the
Trucks
and
Buses
businesses
and
the
Power
Engineering
business
area.
business
area.
The economic
environment remained difficult for the MAN brand in fiscal 2014 and this was dominated by a decline in
business
area.
Theeconomic
economic
environment
remaineddifficult
difficultfor
forthe
the
MAN
brand
inwas
fiscal
2014and
andbythis
this
was
dominatedeffects
byaadecline
decline
in
The
environment
remained
MAN
in
fiscal
2014
dominated
by
in
MANbrand
demand
in many markets.
The European
commercial
vehicles
market
weakened
thewas
pull-forward
from the
demand
in many
many
markets.
The6European
European
commercial
vehicles
market
was
weakened
by the
the pull-forward
pull-forward
effects from
from
the
demand
in
markets.
The
by
effects
introduction
of the
new Euro
emission commercial
standard
on vehicles
January market
1,
2014was
andweakened
by the declining
economic momentum
inthe
the
introduction
ofthe
theyear.
new Euro
Euro
emission
standard
on January
Januarysignificantly
1, 2014
2014 and
andin
byBrazil.
the declining
declining
economic
momentum
in the
the
introduction
of
the
new
66 emission
standard
on
1,
by
the
momentum
in
second half of
Market
conditions
also deteriorated
Overall,economic
orders received
dropped
by
second
half
of the
the year.
year. Market
Market
conditions
also deteriorated
deteriorated
significantly
in Brazil.
Brazil.commercial
Overall, orders
orders
received
dropped
by
second
of
conditions
also
significantly
in
Overall,
received
dropped
by
11.6 % half
to 122
thousand
vehicles.
MANs deliveries
fell by 14.4
% to 120 thousand
vehicles
in the
reporting
11.6
thousand
vehicles.
s
fell
commercial
vehicles
the
11.6%
%to
to
122
thousand
vehicles.
MAN
s deliveries
deliveries
fellby
by14.4
14.4%
%to
to120
120thousand
thousand
commercial
vehicles
in
thereporting
reporting
period,
of122
which
14 thousand
(16MAN
thousand)
were buses.
The
MAN
brand
produced
116 thousand
(141in
thousand)
com11.6
%
to
122
thousand
vehicles.
MAN
s
deliveries
fell
by
14.4
%
to
120
thousand
commercial
vehicles
in
the
reporting
period,
14
thousand
(16
thousand)
were
buses.
The
MAN
brand
116
period, of
of which
whichin
14
thousand
(16
thousand)
were12
buses.
The(16
MAN
brand produced
produced
116thousand
thousand (141
(141thousand)
thousand) comcommercial
vehicles
the
reporting
period,
of which
thousand
thousand)
were buses.
period,
of
which
14
thousand
(16
thousand)
were
buses.
The
MAN
brand
produced
116
thousand
(141
thousand)
commercial
vehicles
in
reporting
period,
of
thousand
thousand)
buses.
mercial
vehicles
inthe
the
reporting
period,
ofwhich
which12
12
thousand(16
(16
thousand)
were
buses.on a level with the previous year.
At 3.9
billion,
orders
received
in the
Power
Engineering
business
areawere
remained
mercial
vehicles
in
the
reporting
period,
of
which
12
thousand
(16
thousand)
were
buses.
At
billion,
received
in
Engineering
business
area
on
with
previous
year.
At3.9
3.9
billion,orders
orders
received
inthe
the
Power
Engineering
business
arearemained
remained
onaaalevel
level
withthe
the
previous
year.
Business
development
was
dominated
byPower
the continuing
difficult
situation
in the shipping
industry,
global
economic
At
3.9
billion,
orders
received
in
the
Power
Engineering
business
area
remained
on
level
with
the
previous
year.
Business
development
was
by
difficult
Business
development
was dominated
dominated
by the
the continuing
continuing
difficult situation
situation in
in the
the shipping
shipping industry,
industry, global
global economic
economic
growth
that
was only moderate
and tougher
financing
conditions.
Business
development
was
dominated
by
the
continuing
difficult
situation
in
the
shipping
industry,
global
economic
growth
growththat
thatwas
wasonly
onlymoderate
moderateand
andtougher
tougherfinancing
financingconditions.
conditions.
growth
that
was
only
moderate
and
tougher
financing
conditions.
SALES REVENUE AND EARNINGS
A
V
N
U
A
N
D
A
N
N
G
A
RREEEEEV
V
N
U
A
N
D
A
RRrevenue
N
N
G
SSSSThe
D
N
SA
ALLLLLEEEEESSSSMAN
S RR
VEEEEbrands
EN
NU
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Nsales
D EEEEEA
ARR
NIIIIIN
NG
GSSSSS
A
R
V
N
U
A
N
D
A
R
N
N
G

decreased by 9.9 % to 14.3 billion in the period from January to December 2014. A
The
sales
revenue
decreased
by
9.9
to
in
period
from
to
A
The MAN
MANofbrands
brands
sales
revenue
decreased
byPower
9.9%
%Engineering
to 14.3
14.3billion
billion
in the
theMAN
period
from January
January
to December
December
2014.
quarter
this figure
was
attributable
to the
segment.
generated
an operating
profit 2014.
of 384
The
MAN
brands
sales
revenue
decreased
by
9.9
%
to
14.3
billion
in
the
period
from
January
to
December
2014.
AA
quarter
of
this
figure
was
attributable
to
the
Power
Engineering
segment.
MAN
generated
an
operating
profit
of
384
quarter (319
of this
thismillion).
figure was
was
attributable
to the
the Power
Power
Engineering
segment.
MANEngineering
generated an
an
operating
profit
ofrecog384
million
This
positive performance
was
largely duesegment.
to the Power
segment,
which
hadof
quarter
of
figure
attributable
to
Engineering
MAN
generated
operating
profit
384
million
(319
This
performance
was
the
Engineering
segment,
had
recogmillion
(319million).
million).contingency
This positive
positive
performance
was largely
largely
due
tooperating
the Power
Power
Engineering
segment, which
which
had
recognized
project-specific
reserves
in the previous
year.due
Theto
return
on sales amounted
to 2.7 %
(2.0
%).
million
(319
million).
This
positive
performance
was
largely
due
to
the
Power
Engineering
segment,
which
had
recognized
project-specific
contingency
reserves
in
the
previous
year.
The
operating
return
on
sales
amounted
to
2.7
%
(2.0
nizedproject-specific
project-specificcontingency
contingencyreserves
reservesin
inthe
theprevious
previousyear.
year.The
Theoperating
operatingreturn
returnon
onsales
salesamounted
amountedto
to2.7
2.7%
%(2.0
(2.0%).
%).
nized
%).

120 thousand
thousand

Vehicles delivered in 2014

Vehicles
Vehiclesdelivered
deliveredin
in 2014
2014
40
40
40
40
40
40

DIVISIONS
D I VMAN
ISIONS
D I VDIISVMAN
I IOSN
I OS N S

MAN
MAN

PRODUCTION

MAN BRAND

PRODUCTION

MAN BRAND

PRO
T ICOTN
P RDOUDCU
ION

M AMNABNR B
AR
NADN D

Units

2014

2013

2014

2013

Units

2014

2013

2014

2013

2014
2014

2013
2013

% %

122

138

11.6

120
122
122122
120
120120
116

140
138
138138
140
140140
141

14.4
11.6
11.6
11.6
14.4

120116
120
14,286
116116
384
14,286

140141
140
15,861
141141
319
15,861

14.4
14.4
9.9
17.8

14,286
14,286
2.7
384

15,861
15,861
2.0
319

384384
2.7
2.72.7

319319
2.0
2.02.0

+
9.9
20.2
9.9
+ 20.2
+ 20.2

Trucks
Units
Units

104,412
2014
2014

Buses
Trucks
Trucks
Trucks
Buses

11,660
104,412
104,412
104,412
116,072
11,660

Buses
Buses

11,660
11,660
116,072
116,072
116,072

125,423
2013
2013

Orders received

(thousand
units)
15,788
125,423
Orders
received
Deliveries
125,423
received
(thousand
units)
125,423
Orders
received
141,211
15,788 Orders
units)
(thousand
units)
Vehicle sales
15,788
Deliveries
15,788 (thousand
141,211
Deliveries
Production
Vehicle
sales
141,211
141,211 Deliveries
Vehicle
Vehicle
sales ( million)
Salessales
revenue
Production
Production
Production
Operating
profit
Sales
revenue
( million)
Sales
revenue
( million)
Sales
(revenue
million)
as
%revenue
of sales
Operating
profit
Operating
profit
Operating
profitrevenue
as % of
sales
as %
revenue
asof
% sales
of sales
revenue

TGX D38
D38
TGX
TGX
TGXD38
D38

14.4
17.8
14.4
17.8
17.8
+20.2
9.9

DELIVERIES BY MARKET

inEpercent
D
LIVERIES BY MARKET
percent
D E in
L IEV
RA
KR
E TK E T
D
LEI R
V IEERSI EBSY BMY AM
in percent
in percent

Europe/Other markets 56.1 %

1.2 %
North America
Europe/Other markets 56.1 %
South America 38.3 %
North
America56.156.1
1.2
%
% %
Europe/Other
markets
Europe/Other
markets
Asia-Pacific
4.4
%
South
America
38.3
% %
North
America
North
America 1.2
1.2
%
Asia-Pacific
4.4
%
South
America
% %
South
America38.338.3
Asia-Pacific
% %
Asia-Pacific 4.4 4.4

41
41
41 41

F U R T H E R I N F O R M A T I O N www.man.eu

F U R T H E R I N F O R M A T I O N www.man.eu

i F U RF U
TH
MRAM
T IAOTNI O www.man.eu
R ET R
H EI N
R FI O
N RF O
N www.man.eu

DIVISIONS

Volkswagen
D I V I SGroup
I O N S China
Volkswagen Group China

Volkswagen Group China

Volkswagen Group China
The Volkswagen Group again generated double-digit growth in China, its largest single
Themarket,
Volkswagen
Group
again
generated
double-digit
growth
in China,
its largest
single
in 2014.
It also
kicked
off the largest
e-mobility
initiative
in the
countrys
market, in 2014. It also kicked off
the largest
e-mobility initiative in the countrys
automotive
history.
automotive history.

BUSI N ESS DEVELOPMENT

B U S I N E S S D Eextended
V E L O P M E its
N T cooperation with its Chinese joint venture partner First Automotive Works (FAW) by a further
Volkswagen
Volkswagen
extended
its cooperation
with its Chinese
joint
venture
partner
First behind
Automotive
) by aisfurther
25
years in the
reporting
period. The partnership
already
has
23 years
of success
it. InWorks
future,(FAW
the plan
also to
25 years in the
reporting
period. The
partnership
already has activities
23 years of
it. In future,
plan is also
to
significantly
expand
the existing
research
and development
insuccess
China behind
and to open
up newthe
business
areas,
significantly
expand the
existing
research and development activities in China and to open up new business areas,
primarily
in alternative
drive
systems.
primarily
in alternative
The production
of drive
directsystems.
shift gearboxes began at the new components plant in Tianjin, northeastern China, in
The production
directisshift
gearboxes
began
the new components
in Tianjin,
northeastern
China,the
in
November
2014. Thisoffacility
one of
the worlds
mostatenvironmentally
friendlyplant
transmission
plants.
It manufactures
November
2014. This
facility specially
is one of the
most environmentally
friendly
transmission
It manufactures
the
latest
generation
gearboxes
for worlds
the Chinese
market. They are
intended
for use inplants.
a number
of Volkswagen
latest generation
gearboxes
specially
formodels
the Chinese
market. They
intended
for useand
in components
a number ofare
Volkswagen
Passenger
Cars, Audi
and KODA
brand
in the A-segment
and are
B-segment.
Vehicles
currently
Passenger Cars,
and
brandinmodels
the A-segment and B-segment.
and components
are currently
manufactured
atAudi
a total
of KODA
18 locations
China.in
Shanghai-Volkswagen
will open aVehicles
further location
in Changsha
in 2015.
manufactured
a total
18new
locations
China.
willChinas
open aeast
further
location
in 2015.
There
are also at
plans
for of
two
vehicleinplants
inShanghai-Volkswagen
Qingdao and Tianjin on
coast.
These in
willChangsha
be constructed
in
There are also
plans
two
new vehicle
plants
Qingdao
and Tianjinenvironmentally
on Chinas eastfriendly
coast. These
willThe
be constructed
cooperation
with
ourfor
joint
venture
partner
FAWin
and
will manufacture
models.
overall goal in
is
cooperation
with our
joint venture
partner
FAWmillion
and will
manufacture
friendly
models.
The overall
goal isa
to
expand capacity
gradually
to more
than five
vehicles
per yearenvironmentally
by 2019. The joint
venture
companies
will invest
to expand
capacity22.0
gradually
to more
than
five million
vehiclesand
per year
by 2019.
The joint
venture2015
companies
will invest
total
of around
billion
in new
production
facilities
products
in China
between
and 2019.
Thesea
total of around
22.0
billion
in new
production
facilities
and products in China between 2015 and 2019. These
investments
will be
financed
entirely
by the
companies
cash flows.
investments
willof
bethe
financed
entirely
by theoff
companies
flows. initiative in China in the reporting period. The e-Golf
The launch
electric-up!
kicked
our majorcash
e-mobility
of follow
the electric-up!
kicked
off our major
e-mobility
initiative
China market
in the reporting
period.
and The
Golflaunch
GTE will
in 2015. Our
e-mobility
strategy
is tailored
to the in
Chinese
and provides
for The
bothe-Golf
joint
and Golf GTE
will followproduce
in 2015.plug-in
Our e-mobility
strategy
is tailored
the Chinese
forisboth
joint
ventures
to successively
hybrids and
electric
vehicles to
locally.
Our planmarket
for theand
nextprovides
four years
to launch
ventures20
to models
successively
plug-in
vehicles
locally.
Our plan
next four years
is to
around
with produce
alternative
drivehybrids
systemsand
in electric
the Chinese
market,
where
thereforisthe
a tremendous
focus
onlaunch
these
around 20 models with alternative drive systems in the Chinese market, where there is a tremendous focus on these
technologies.
technologies.
The Volkswagen Group offers more than 80 models in the Chinese passenger car market, representing the Volkswagen
The Volkswagen
Group
offers
more than
80 models
in the Chinese
passenger
market,
representing
the Volkswagen
Passenger
Cars, Audi,
KODA
, Porsche,
Bentley,
Lamborghini,
SEAT
, Bugatticar
and
Volkswagen
Commercial
Vehicles
Passenger
Audi, KODA
, Porsche,
Lamborghini,
SEAT, Bugatti
and
Volkswagen to
Commercial
brands.
TheCars,
Volkswagen
Groups
deliveriesBentley,
to customers
in China increased
by 12.4
% year-on-year
3.7 million Vehicles
vehicles
brands. The
Volkswagen
deliveries
to customers
China in
increased
by 12.4
% year-on-year
3.7 million
vehicles
(including
imports).
ThisGroups
consolidated
our strong
marketin
position
China. The
Volkswagen
Lavida,to
Sagitar,
New Santana
(including
imports).
This
consolidated
positionparticularly
in China. The
Volkswagen
Lavida,
Sagitar, New Santana
and
New Jetta,
the Audi
Q5
and A6, andour
thestrong
KODAmarket
Rapid proved
popular
with Chinese
customers.
and New Jetta, the Audi Q5 and A6, and the KODA Rapid proved particularly popular with Chinese customers.

12.4 %%
Growth in deliveries to customers in China
Growth in deliveries to customers in China
42
42

DIVISIONS

Volkswagen
D
IIO
DIIV
VIISSGroup
ON
NSS China
Volkswagen Group China
DIVISIONS

Volkswagen Group China

EARNI NGS
EEA
ARR N
N II N
NG
GSS

Thousand units

2014

2013

E Amillion
RNINGS

2014

2013

Thousand
Thousand units
units

2014
2014

2013
2013

%
%

million
million

2014
2014

2013
2013

Deliveries

3,675

3,271

+ 12.4

Operating profit (100 %)

12,077

9,569

Deliveries
Deliveries
Vehicle
sales*
Thousand
units

3,675
3,675
3,506
2014

3,271
3,271
3,038
2013

++ 12.4
12.4
15.4
%

Operating
Operating
profit (100
(100%)
%)
(proportionate)

million profit

12,077
12,077
5,182
2014

9,569
9,569
4,296
2013

Vehicle
Vehicle sales*
sales*
Production

3,506
3,506
3,528

3,038
3,038
3,135

++ 15.4
15.4
12.6

Operating
Operating profit
profit (proportionate)
(proportionate)

Production
Production
Deliveries

3,528
3,528
3,675

3,135
3,135
3,271

++ 12.6
12.6
12.4

Operating profit (100 %)

*Vehicle
Produced
locally
sales*

3,506

3,038

+ 15.4

Operating profit (proportionate)

3,528

3,135

+ 12.6

** Produced
Produced locally
locally

Production

5,182
5,182

4,296
4,296

12,077

9,569

5,182

4,296

* Produced locally

Our two joint ventures, Shanghai-Volkswagen and FAW-Volkswagen,

Our
two joint
ventures,
FAW-Volkswagen,
produced
a total
of 3.5 Shanghai-Volkswagen
million vehicles in theand
reporting
period, up
produced
a total of 3.5The
million
vehicles
in the
reporting
period, up
12.6 % year-on-year.
joint
ventures
produced
a mixture
of
12.6
% year-on-year.
The
joint
ventures
produced
mixture
of
Our two
jointGroup
ventures,
Shanghai-Volkswagen
and FAWa-Volkswagen,
established
models
and
those
specially
modified
for
Chinese
established
Group
and those
specially
Chinese
produced a(e.g.
totalwith
ofmodels
3.5
vehicles
in themodified
reporting
period,
up
customers
a million
lengthened
wheelbase),
as wellfor
as
vehicles
customers
(e.g.
with a The
lengthened
wheelbase),
as well
vehicles
12.6 % year-on-year.
produced
a as
mixture
of
developed
exclusively
for joint
the ventures
Chinese
market
(such
as the
developed
thethose
Chinese
market
(such
as Prothe
established exclusively
Group
and
specially
modified
for Chinese
Volkswagen
Lavida,models
Newfor
Bora,
New
Jetta and
New Santana).
Volkswagen
Lavida,
Bora,
Jetta saloon,
and New
Santana).
Procustomers
(e.g.
withNew
a lengthened
wheelbase),
asawell
as specially
vehicles
duction
commenced
on
the
new New
Lamando
model
duction
commenced
the
a model
developed
for new
theLamando
market
(suchspecially
as the
designed
forexclusively
Chineseon
customers,
atChinese
the endsaloon,
of
2014.
designed
for Lavida,
ChineseNew
customers,
at theJetta
end and
of 2014.
Volkswagen
Bora, New
New Santana). Production commenced on the new Lamando saloon, a model specially
designed for Chinese customers, at the end of 2014.

Lamando
Lamando
Lamando

LOCA L PRODU CTION

LLO
OCCA
A LL PPRRO
OD
DU
U CCTTIIO
ON
N
LOCA L PRODU CTION
Units

2014

2013

Units
Units

2014
2014

2013
2013

Volkswagen Passenger Cars

2,721,805

2,459,463

Volkswagen
Volkswagen Passenger
Passenger Cars
Cars
Audi
Units

2,721,805
2,721,805
529,205
2014

2,459,463
2,459,463
420,000
2013

529,205
529,205
277,138

420,000
420,000
255,202

KODA
KODA
Volkswagen
Passenger Cars
Total

Audi
Audi
KODA

277,138
277,138
2,721,805
3,528,148

255,202
255,202
2,459,463
3,134,665

Total
Total
Audi

3,528,148
3,528,148
529,205

3,134,665
3,134,665
420,000

KODA
Total

277,138

255,202

3,528,148

3,134,665

The joint ventures generated a proportionate operating profit of

The
ventures
a proportionate
operating
profit
of
5.2 joint
billion
in 2014,generated
up 0.9 billion
on the prior-year
figure.
This
5.2
billion
in 2014, up
on thevolumes,
prior-year
figure.
This
positive
development
was0.9
duebillion
to increased
lower
material
positive
development
was
due toaand
increased
volumes,
lower
material
The joint
ventures
proportionate
operating
profit of
costs,
consistent
costgenerated
discipline
the high
capacity
utilization
at
costs,
consistent
cost discipline
and the
capacity utilization
at
5.2plants.
billion
in 2014,
up 0.9 billion
on high
the prior-year
figure. This
our
our
plants.
positive
due to
increased volumes,
lower
material
The development
Chinese jointwas
venture
companies
figures are
not included
The
Chinese
jointas
venture
companies
figures
are not
included
costs,
consistent
cost
discipline
and
the high
capacity
utilization
at
in
Group
earnings
they are
accounted
for using
the
equity
in
earnings
asare
they
are accounted
for Groups
using the
equity
ourGroup
plants.
method.
Their
profits
included
solely in the
financial
method.
Their
profits
arebasis.
included
solely in
the Groups
The
joint venture
companies
figures
are not financial
included
result
onChinese
a proportionate
result
on a proportionate
basis.are accounted for using the equity
in Group
earnings as they
method. Their profits are included solely in the Groups financial
result on a proportionate basis.

43
43
43

DIVISIONS

Volkswagen
Financial
DIV
I S I O N S Services
Volkswagen Financial Services

Volkswagen Financial Services built on its growth over the past few years in 2014 and
Volkswagen
Financial
Services built
onVolkswagen
its growth over
the past
few years
in 2014
and
made a significant
contribution
to the
Groups
earnings.
The focus
was
on
made aentry
significant
contribution
to the Volkswagen
Groups earnings.
focus Services.
was on
market
in South
Africa and Malaysia
and the integration
of MANThe
Financial
market entry in South Africa and Malaysia and the integration of MAN Financial Services.

ST R U C T U R E O F V O L K SWA G E N F I N A N C I A L S E R V I C E S

Volkswagen
Financial
Services
ST
RUCTURE O
F V O L K SWA
G E N F Iportfolio
N A N C I A L of
S Eservices
R V I C E S covers dealer and customer financing, leasing, banking and insurance
activities, fleet
management
and
mobility
in 51 countries.
Financialleasing,
Services
AG is responsible
for
Volkswagen
Financial
Services
portfolio
ofofferings
services covers
dealer andVolkswagen
customer financing,
banking
and insurance
coordinating
Groups global
activities,
the only exceptions
the Scania
andAG
Porsche
brands, and
activities,
fleetthe
management
andfinancial
mobilityservices
offerings
in 51 countries.
Volkswagenbeing
Financial
Services
is responsible
for
the financial the
services
business
of Porsche
Holding
Salzburg.
The exceptions
principal companies
in thisand
division
in brands,
Europe and
are
coordinating
Groups
global financial
services
activities,
the only
being the Scania
Porsche
Volkswagen
GmbH,
Volkswagen
Leasing
GmbH
and Volkswagen
Versicherungsdienst
GmbH.
VW in
CREDIT
, INC
the
financialBank
services
business
of Porsche
Holding
Salzburg.
The principal
companies in this
division
Europe
are.
operates financial
in North
America.
Volkswagen
Bank services
GmbH, activities
Volkswagen
Leasing
GmbH and Volkswagen Versicherungsdienst GmbH. VW CREDIT, INC.
operates financial services activities in North America.
BUSI N ESS DEVELOPMENT

Volkswagen
generated record results in fiscal 2014. This success was helped by close cooperation with
B
U S I N E S S D EFinancial
V E L O P M E Services
NT
Group brands,
growth
in the existing
markets
international
expansion.
addition,
the cooperation
product portfolio
Volkswagen Financial
Services
generated
record results
in and
fiscal
2014. This success
was In
helped
by close
with
was expanded
afterbrands,
Volkswagen
Financial
Services
AG acquired
MAN Finance
International
GmbH the
on product
January portfolio
1, 2014.
Volkswagen
Group
growth
in the existing
markets
and international
expansion.
In addition,
Volkswagen
Financial
Services AGs
core business
nowacquired
includesMAN
financial
services
for trucks
and buses
following
this
was
expanded
after Volkswagen
Financial
Services AG
Finance
International
GmbH
on January
1, 2014.
transaction. Including
Financial
Services,
thenow
entire
range offinancial
Volkswagen
Groupfor
vehicles
nowbuses
covered.
Volkswagen
Financial Ducati
Services
AGs core
business
includes
services
trucksisand
following this
In the area
of New Mobility,
Volkswagen
Financial
Services
intensified
carsharing
Itsnow
equity
interest in Dutch
transaction.
Including
Ducati Financial
Services,
the entire
range
of Volkswagen
Groupactivities.
vehicles is
covered.
carsharing
market
leader
Collect
Car B.V., Financial
better known
as Greenwheels,
was increased
beginning
2015.
In the area
of New
Mobility,
Volkswagen
Services
intensified carsharing
activities.at
Itsthe
equity
interest of
in Dutch
Greenwheels
has a fleet
of approximately
2,000
vehicles,
which
1,700 are in was
the Netherlands
are in Germany.
carsharing
market
leader
Collect Car B.V.,
better
knownofas
Greenwheels,
increased atand
the300
beginning
of 2015.
The goal is to further
develop
the business 2,000
modelvehicles,
featuringofdemand-driven
modular
Greenwheels
has a fleet
of approximately
which 1,700 are
in the solutions.
Netherlands and 300 are in Germany.
Germany,
Volkswagen
Financial
Services
pioneering
a convenientmodular
way for private
and business customers of both
The In
goal
is to further
develop the
business
modelisfeaturing
demand-driven
solutions.
Volkswagen
and Audi
to charge
their electric
Since aJanuary
2015way
they
been
able
to usecustomers
the Charge&Fuel
In Germany,
Volkswagen
Financial
Servicesvehicles.
is pioneering
convenient
forhave
private
and
business
of both
Card to recharge
theirto
vehicles
fillelectric
up withvehicles.
conventional
throughout
Germany,
benefitting
simple
payment
Volkswagen
and Audi
chargeand
their
Sincefuel
January
2015 they
have been
able tofrom
use athe
Charge&Fuel
Card to recharge their vehicles and fill up with conventional fuel throughout Germany, benefitting from a simple payment

12.4 million
million
Contracts as of December 31, 2014
Contracts as of December 31, 2014
44
44

DIVISIONS

Volkswagen
D IFinancial
V I S I O N S Services
Volkswagen Financial Services

method from a single source and attractive, transparent tariffs. The card and associated smartphone app can be used to
pay
for all
recharging
refueling
transactions
at cooperating
Fleet customers
will
becan
the be
chief
daymethod
from
a single and
source
and attractive,
transparent
tariffs.partners
The card locations.
and associated
smartphone
app
used
to
to-day
of simplified
e-mobility
management.
pay forbeneficiaries
all recharging
and refueling
transactions
at cooperating partners locations. Fleet customers will be the chief dayVolkswagen
Finance
China celebrated
tenth anniversary in the reporting period. During this period, the wholly
to-day
beneficiaries
of simplified
e-mobility its
management.
owned
subsidiaryFinance
of Volkswagen
Financial Services
has built upina leading
role inperiod.
the Chinese
vehicle
financing
Volkswagen
China celebrated
its tenthAGanniversary
the reporting
During
this period,
themarket.
wholly
The
popularity
of automotive
financial
services
in China
is growing,
its penetration
in this
traditional
cashmarket.
buyers
owned
subsidiary
of Volkswagen
Financial
Services
AG has
built up aand
leading
role in the rate
Chinese
vehicle
financing
market
grew to approximately
11 % (7 %)
in 2014.
The popularity
of automotive financial
services
in China is growing, and its penetration rate in this traditional cash buyers
Volkswagen
Financial Services
continued
market
grew to approximately
11 % AG
(7 %)
in 2014. its internationalization trajectory in 2014: the Volkswagen Financial
Services
South Africa
joint venture
operations
the spring and is driving
forward
the development
of automotive
Volkswagen
Financial
Servicesstarted
AG continued
its in
internationalization
trajectory
in 2014:
the Volkswagen
Financial
financial
services
within
Volkswagen
Audi dealer
South
African
Volkswagen
Capital
Services South
Africa
jointthe
venture
started and
operations
in the networks
spring andinisthe
driving
forward
themarket.
development
of automotive
Advisory,
a whollywithin
ownedthe
subsidiary
of Volkswagen
Financial
Services
has been
offering
vehicle
financing
and
financial services
Volkswagen
and Audi dealer
networks
in AG,
the South
African
market.
Volkswagen
Capital
insurance
Malaysia
since last
fall.
Advisory, in
a wholly
owned
subsidiary
of Volkswagen Financial Services AG, has been offering vehicle financing and
The Volkswagen
financial
services
insurance
in Malaysia
since last
fall. providers funding strategy again proved successful in 2014. The core elements are
diversification
of the financial
instruments
usedproviders
and the broadest
On this basis,
money
and capital
The Volkswagen
services
fundingpossible
strategy local
againfunding.
proved successful
in 2014.
Themarket
core elements
are
market
instruments,
(ABSbroadest
) transactions
andlocal
customer
deposits
in particular
are used
forand
funding.
diversification
of theasset-backed
instruments securities
used and the
possible
funding.
On this
basis, money
market
capital
ABSinstruments,
issues are used
to securitize
loan(ABS
and) transactions
leasing receivables
in various
currency
areas.are
Receivables
totaling
market
asset-backed
securities
and customer
deposits
in particular
used for funding.
9.1ABS
billion
wereare
securitized
10 ABS transactions
worldwide
in 2014.
Bank GmbH
Driver totaling
12, the
issues
used to in
securitize
loan and leasing
receivables
in Volkswagen
various currency
areas.placed
Receivables
largest
European
ABS transaction
since
the financial
crisis inin
2007.
The
first Chinese
auto
loansplaced
were securitized
9.1 billion
were auto
securitized
in 10 ABS
transactions
worldwide
2014.
Volkswagen
Bank
GmbH
Driver 12,and
the
sold
to European
investors midway
the year.
Driver China
One
transaction
theloans
ABS program
into a new
largest
auto ABSthrough
transaction
since The
the financial
crisis in
2007.
The first expanded
Chinese auto
were securitized
and
currency
area andmidway
provided
a new source
of funding
for China
the rapidly
in China.
Financial
sold to investors
through
the year.
The Driver
One expanding
transactionbusiness
expanded
the ABSVolkswagen
program into
a new
Services
Driver UKa Two,
the highest
volumefor
sterling-denominated
ABSbusiness
transaction.
The first
bonds were
issued
currencyalso
areaplaced
and provided
new source
of funding
the rapidly expanding
in China.
Volkswagen
Financial
in
Russiaalso
andplaced
South Korea,
offhighest
the capital
market
activities in 2014. ABS transaction. The first bonds were issued
Services
Driver rounding
UK Two, the
volume
sterling-denominated
in Russia and South Korea, rounding off the capital market activities in 2014.

1.7 billion
billion
Operating profit for 2014
Operating profit for 2014

45
45

DIVISIONS

DIVISIONS

Volkswagen Financial Services

Volkswagen Financial Services

The number of new financing, leasing, service and insurance contracts signed in 2014 was 4.9 million, 15.6 % more than
the prior-yearGmbH,
periodwhich
(2013was
excluding
MAN
in the prior-year period (2013 excluding MAN FinanceinInternational
acquired
on January 1, 2014). At
12.4 million, the total number of contracts as of December 31, 2014 was a new record figure (+ 15.5 %). This included
7.8 million
in the figure
Customer
Financing/Leasing
area, up 13.0
7.8 million contracts in the Customer Financing/Leasing
area, upcontracts
13.0 % on
for 2013.
The Service/Insurance
area
year-on-year
by 19.9
area posted the biggest year-on-year increase, growing
byposted
19.9 %the
to biggest
4.5 million
contracts.increase,
Based ongrowing
unchanged
credit
eligibility criteria, the penetration rate, expressed as the ratio of financed or leased vehicles to relevant Group delivery
volumes
including
the Chinese joint ventures increased to 30.6 % (28.9 %).
volumes including the Chinese joint ventures increased
to 30.6
% (28.9 %).
Banks
direct banking
business
hadof
1,403
thousa
Volkswagen Banks direct banking business had 1,403Volkswagen
thousand (1,418
thousand)
accounts
at the end
the reporting
period.
Volkswagen
12,821 6,248
peopleinglobally as of
period. Volkswagen Financial Services employed 12,821
people
globally Financial
as of the Services
reportingemployed
date, including
Germany.
Germany.
SALES REVENUE AND EARNINGS

SALES REVENUE AND EARNINGS

Volkswagen
Financial
Services
generated
revenue increase
of 22.1 of
Volkswagen Financial Services generated sales revenue
of 22.1 billion
in the
past fiscal
year, asales
year-on-year
%. At 1.7
billion,
operating
profit
exceeded
16.6 %. At 1.7 billion, operating profit exceeded the16.6
prior-year
figure
by 5.5
%. Higher
volumes
offsetthe
theprior-year
increasedfigure by 5.5
expenses
for meeting
regulatory
requirements
and the
contin
expenses for meeting regulatory requirements and the
continuing
pressure
on margins.
With this new
record
result,
Financial Services
continued
to as
make
a significant
contribution to
Volkswagen Financial Services continued to make a Volkswagen
significant contribution
to Group
earnings,
it has
done in the
previous years.
previous years.

V O L K SWA G E N F I N A N C I A L S E R V I C E S

V O L K SWA G E N F I N A N C I A L S E R V I C E S

Number of contracts
thousands

Number of contracts

20141

2013

thousands
+ 15.5

12,383

10,725

Customer financing

Customer financing

5,560

4,946

+ 12.4

Leasing

Leasing

2,274

1,983

+ 14.7

Service/Insurance

Service/Insurance

4,549

3,796

+ 19.9

Receivables from
million

Receivables from

million

Customer financing

Customer financing

59,719

50,735

+ 17.7

Dealer financing

Dealer financing

15,030

13,154

+ 14.3

Leasing agreements

Leasing agreements

18,930

16,181

+ 17.0

Direct banking deposits

Direct bankingdeposits
million

23,774

21,285

million
+ 11.7

Total assets

Total assets

million

137,438

115,067

million
+ 19.4

Equity

Equity

million

15,184

11,582

million
+ 31.1

Liabilities2

Liabilities2

million

117,803

99,465

million
+ 18.4

Equity ratio

Equity ratio

Return on equity before tax3

3
Return on equity before
% tax

Leverage4

Leverage4

7.8

8.6

Operating profit

Operating profit
million

1,702

1,614

Profit before tax

Profit before tax

million

1,747

1,711

Employees at Dec. 31

Employees at Dec. 31

12,821

10,945

11.0

10.1

13.1

14.9

%
million
+ 5.5
million
+ 2.1
+ 17.1

1 MAN Finance International GmbH has been reported within Volkswagen Financial Services since its acquisition by Financial Services AG as of January 1, 2014.
The prior-year figures have not been adjusted.
The prior-year figures have not been adjusted.
2 Excluding provisions and deferred tax liabilities.
2 Excluding provisions and deferred tax liabilities.
3 Profit before tax as a percentage of average equity (continuing operations).
3 Profit before tax as a percentage of average equity (continuing operations).
4 Liabilities as a percentage of equity.
4 Liabilities as a percentage of equity.

F U RTH E R I N F O R M AT I O N
www.vwfsag.com

F U RTH E R I N F O R M AT I O N
www.vwfsag.com

46

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A N AG E

U S TO

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ELIVERIES WORL WI E

GROUP

ANAGE

E N T R E P O R T O F T E VO L K SWAG E N G R O U P A N

VO L K SWAG E N G R O U P

ENT REPORT

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VO L K SWAG E N AG

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1 .1

Goals and Strategies

Internal Management System and Key Performance Indicators
Structure and Business Activities
Corporate Governance Report
Remuneration Report
Executive Bodies
Disclosures Required Under Takeover Law
GROUP

A N AG E

ENT REPORT

Business Development
Shares and Bonds
Results of Operations, Financial Position and Net Assets
Volkswagen AG (condensed, in accordance
with the German Commercial Code)
Sustainable Value Enhancement
Report on Expected Developments
Report on Risks and Opportunities
Prospects for 2015

G R O U P M A N A G E M E N T R E P O RT

Goals and Strategies

Goals and Strategies

The Volkswagen Group aims to increase its unit sales and profitability for the long term.
This is why its Strategy 2018 with which Volkswagen intends to become the global economic
and environmental leader among automobile manufacturers by 2018 has been anchored
in the Company.

Volkswagen Group has the right products for success even in more
challenging economic conditions. At the same time, this will mean
that capital expenditure remains at manageable levels. Our
attractive and environmentally friendly range of vehicles, which we
are selectively expanding, and the strong position enjoyed by our
individual brands in the markets worldwide, are key factors
allowing us to leverage the Groups strengths and to systematically
increase our competitive advantages.
Our activities are primarily oriented on setting new ecological
standards in the areas of vehicles, drivetrains and lightweight
construction. Our modular toolkit system, which we are enhancing
on an ongoing basis, allows us to constantly improve production
efficiency and flexibility, thus increasing the Groups profitability.
In addition, we want to continually expand the Volkswagen
Groups customer base by further increasing satisfaction among
our existing customers and acquiring new, satisfied customers
around the world, particularly in the growth markets. In order to
ensure this, we are increasingly adapting our products to meet local
requirements and focusing on the specific features of individual
markets. We shall continue the measures we are currently taking to
improve our productivity and quality regardless of the economic
situation and without any time limit. These include our regional
development teams and our cooperation with local suppliers,
among other things. Other key elements include standardizing
processes in both the direct and indirect areas of the Group and
reducing production throughput times. Together with disciplined
cost and investment management, these measures play a major role
in ensuring that we reach our long-term profitability targets and
safeguard solid long-term liquidity.
We will only successfully meet the challenges of today and
tomorrow if all employees from vocational trainees through to
senior executives consistently deliver excellence so as to ensure
the quality of the Volkswagen Groups innovations and products for
the long term and at the highest level. Outstanding performance,
the success that comes from it and participation in its rewards are at
the heart of our human resources strategy.

Our Strategy 2018 focuses on positioning the Volkswagen Group as

a global economic and environmental leader among automobile
manufacturers. We have defined four goals that are intended to
make Volkswagen the most successful, fascinating and sustainable
automaker in the world by 2018:
> Volkswagen intends to deploy intelligent innovations and
technologies to become a world leader in customer satisfaction
and quality. We see high customer satisfaction as one of the key
requirements for the Companys long-term success.
> The goal is to generate unit sales of more than 10 million vehicles
a year; in particular, Volkswagen intends to capture an aboveaverage share of growth in the major growth markets.
> Volkswagens aim is a long-term return on sales before tax of at
least 8% so as to ensure that the Groups solid financial position
and ability to act are guaranteed even in difficult market periods.
> Volkswagen aims to be the most attractive employer in the
automotive industry by 2018. To build the best vehicles, we need
the best team in the sector; highly qualified, fit and, above all,
motivated.
We are focusing in particular on the environmentally friendly
orientation and profitability of our vehicle projects so that the
S T R AT E G Y 2 0 1 8

Leader
in customer
satisfaction
and quality
VOLKSWAGEN GROU P
Vision: to be the most
successful, fascinating
and sustainable
automaker in the world

Leading
employer

Group
return on
sales before
tax of > 8%

Unit sales
of > 10 million
vehicles

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G R O U P M A N A G E M E N T R E P O RT

Internal Management System and Key Performance Indicators

Internal Management System

and Key Performance
Indicators
Based on the goals set out in our Strategy 2018, this chapter describes how the Volkswagen Group
is managed and the key performance indicators used for this. Alongside financial measures, our
management system also contains nonfinancial key performance indicators.

The Volkswagen Groups performance and success can be

measured using both financial and nonfinancial key performance
indicators. The following starts by describing the internal management process, and then explains the Volkswagen Groups core
performance indicators.

The coordinated results of the upstream planning processes are

used as the basis for the medium-term financial planning: the
Groups financial planning, including the brands and business
fields, comprises the income statement, cash flow and balance
sheet planning, profitability and liquidity, as well as the upfront
investments needed for alternative products and the implementation of strategic options.
The first year of the medium-term planning period is then fixed
and a budget drawn up for the individual months. This is planned in
detail down to the level of the operating cost centers.
During the year, the budget is reviewed each month to establish
the degree to which the targets have been met. In the process,
target/actual comparisons, prior-year comparisons, variance analyses and, if necessary, action plans to ensure targets are met, are
indispensable instruments within the management system. For the
current fiscal year, detailed revolving monthly forecasts are
prepared for the coming three months and the full year. These
forecasts take into account the current risks and opportunities. The
focus of intrayear internal management is therefore on adapting
ongoing operations. At the same time, the current forecast serves as
a potential, ongoing corrective to the medium-term and budget
planning that follows on from it.

I N T E R N A L M A N A G E M E N T P R O C E S S I N T H E V O L K SWA G E N G R O U P

The starting point for the Volkswagen Groups internal management is the medium-term planning conducted once a year. This
covers a period of five years and forms the core of our operational
planning. It is used to formulate and check the requirements for
realizing strategic projects designed to meet Group targets in
technical and economic terms and particularly in relation to
earnings and liquidity effects. In addition, it is used to coordinate all
business areas with respect to the strategic action areas concerned:
functions/processes, products and markets.
When planning the Companys future, the individual planning
components are determined on the basis of the timescale involved:
> The long-term unit sales plan, which sets out market and
segment growth and then derives the Volkswagen Groups
delivery volumes from them.
> The product program as the strategic, long-term factor determining corporate policy.
> Capacity and utilization planning for the individual locations.

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Internal Management System and Key Performance Indicators

The ratio of capex (investments in property, plant and equipment,

investment property and intangible assets, excluding capitalized
development costs) to sales revenue in the Automotive Division
represents both our innovative power and our competitiveness. It
compares our capital expenditure largely for modernizing and
expanding our product range and environmentally friendly drivetrains, as well as for increasing capacity and improving production
processes to the Automotive Divisions sales revenue.
Net cash flow in the Automotive Division represents the excess
funds from operating activities available for dividend payments, for
example. It is calculated as cash flows from operating activities less
cash flows from investing activities attributable to operating
activities.
We use the return on investment (ROI) to calculate the return on
invested capital for a particular period in the Automotive Division,
including the Chinese joint ventures on a proportionate basis, by
calculating the ratio of operating profit after tax to invested capital.
If the return on investment (ROI) exceeds the market cost of capital,
the value of the Company has increased. This is how we measure
the success of our brands, locations and vehicle projects.
You can find information and explanations on the sales figures
and the Volkswagen Groups financial key performance indicators
on pages 82 to 87 and on pages 99 to 113, respectively.
Detailed descriptions of our activities and additional nonfinancial key performance indicators in the areas of corporate
social responsibility, research and development, procurement,
production, sales and marketing, quality assurance, employees,
information technology and environmental management can be
found in the chapter entitled Sustainable Value Enhancement
beginning on page 118 of this annual report.

C O R E P E R F O R M A N C E I N D I C ATO R S I N T H E V O L K SWA G E N G R O U P

The Volkswagen Groups internal management is based on seven

core performance indicators, which are derived from the goals set
out in our Strategy 2018:
> Deliveries to customers
> Sales revenue
> Operating profit
> Operating return on sales
> Capex/sales revenue in the Automotive Division
> Net cash flow in the Automotive Division
> Return on investment (ROI) in the Automotive Division
Deliveries to customers are defined as handovers of new vehicles to
the end customer. This figure shows the popularity of our products
with customers and is the measure we use to determine our
competitive position in our markets. Increasing deliveries to
customers is closely linked to our objectives of offering superior
customer satisfaction and quality, as well as achieving unit sales of
more than 10 million vehicles including the Chinese joint
ventures. High customer satisfaction, combined with and based on
the outstanding quality of our vehicles, is one of the most important
preconditions for the Companys success. Demand for our products
is what drives our unit sales and production, and hence determines
capacity utilization at our locations. Only a top team can meet the
goals we have set ourselves and ensure long-term financial success.
Sales revenue, which does not include the figures for our
equity-accounted Chinese joint ventures, reflects our market
success in financial terms. Following adjustment for our use of
resources, operating profit reflects the Companys actual business
activity and documents economic output in our core business. The
operating return on sales is the ratio of operating profit to sales
revenue.

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Structure and Business Activities

Structure and Business

Activities
This chapter describes the legal and organizational structure of the Volkswagen Group and
explains the material changes in 2014 with respect to equity investments.

mercial vehicles, trucks and buses. The product portfolio ranges

from motorcycles to fuel-efficient small cars and luxury vehicles. In
the commercial vehicles segment, the offering begins with small
pickups and extends to buses and heavy trucks. Other business
fields manufacture large-bore diesel engines and special gear units,
among other things. A broad range of financial services rounds off
the offering. With its brands, the Volkswagen Group has a presence
in all relevant markets around the world. Western Europe, China,
Brazil, the USA, Russia and Mexico are currently the key sales
markets for the Group.
Volkswagen AG and the Volkswagen Group are managed by
Volkswagen AGs Board of Management in accordance with the
Volkswagen AG Articles of Association and the rules of procedure
for Volkswagen AGs Board of Management issued by the Supervisory Board. The Group Board of Management, which was formed
to support the work of the Board of Management, ensures that
Group interests are taken into account in decisions relating to the
Groups brands and companies within the framework laid down by
law. This body consists of the members of Volkswagen AGs Board of
Management, the chairmen of the larger brands and selected top
managers with Group management functions. Volkswagens
strategic management is largely conducted at Group level by various
committees. These committees, which are composed of representatives both of the relevant central departments and the
corresponding functions in the Companys business areas, cover
the following basic functions, among other things: product
planning, investment, liquidity and foreign currency, and management issues.
Each brand in the Volkswagen Group is managed by a board of
management, which ensures its independent development and its
business operations. The Group targets and requirements laid
down by the Board of Management of Volkswagen AG or the Group
Board of Management must be complied with to the extent
permitted by law. This allows Group-wide interests to be pursued
while at the same time safeguarding and reinforcing each brands
specific characteristics. Matters that are of importance to the Group

O U T L I N E O F T H E L E G A L ST R U C T U R E O F T H E G R O U P

Volkswagen AG is the parent company of the Volkswagen Group. It

develops vehicles and components for the Groups brands, but also
produces and sells vehicles, in particular passenger cars and light
commercial vehicles for the Volkswagen Passenger Cars and
Volkswagen Commercial Vehicles brands. In its function as parent
company, Volkswagen AG holds indirect or direct interests in
AUDI AG, SEAT S.A., KODA AUTO a.s., Dr. Ing. h.c. F. Porsche AG,
Scania AB, MAN SE, Volkswagen Financial Services AG and a
large number of other companies in Germany and abroad. More
detailed disclosures are contained in the list of shareholdings in
accordance with sections 285 and 313 of the Handelsgesetzbuch
(HGB German Commercial Code), which can be accessed at
www.volkswagenag.com/ir and is part of the annual financial
statements.
Volkswagen AG is a vertically integrated energy company within
the meaning of section 3 no. 38 of the Energiewirtschaftsgesetz
(EnWG German Energy Industry Act) and is therefore subject to
the provisions of the EnWG. In the electricity sector, Volkswagen AG
performs electricity generation, sales and distribution together
with a Group subsidiary.
Volkswagen AGs Board of Management is the ultimate body
responsible for managing the Group. The Supervisory Board
appoints, monitors and advises the Board of Management; it is
consulted directly on decisions that are of fundamental significance
for the Company.
O R G A N I Z AT I O N A L ST R U C T U R E O F T H E G R O U P

The Volkswagen Group is one of the leading multibrand groups in

the automotive industry. The Companys business activities
comprise the Automotive and Financial Services divisions. All
brands in the Automotive Division with the exception of the
Volkswagen Passenger Cars and Volkswagen Commercial Vehicles
brands are legally independent separate companies. The business
activities of the various companies in the Volkswagen Group focus
on developing, producing and selling passenger cars, light com-

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Structure and Business Activities

outstanding would be completed since all of the conditions

including becoming the owner of more than 90% of all Scania
shares had been fulfilled. As of December 31, 2014, Volkswagen
held a 99.57% interest in Scanias capital and 99.66% of the voting
rights. The squeeze-out for the Scania shares not tendered in the
offer has been initiated and Scanias shares were delisted from the
NASDAQ OMX in Stockholm at the end of June 5, 2014. On
November 11, 2014 the court of arbitration ruled in the squeezeout proceedings that all Scania shares outstanding will be
transferred to Volkswagen AG. Volkswagen AG has been the indirect
and direct legal owner of all Scania shares since January 14, 2015,
when the decision became final and unappealable. The arbitration
proceedings to determine an appropriate settlement are continuing.
Volkswagen aims to create a leading commercial vehicles group
through close operational cooperation between Scania, MAN and
Volkswagen Commercial Vehicles.

as a whole are submitted to the Group Board of Management in

order to the extent permitted by law to reach agreement between
the parties involved. The rights and obligations of the statutory
bodies of the relevant brand companies remain unaffected.
The companies of the Volkswagen Group are managed
separately by their respective managements. In addition to the
interests of their own companies, each individual company
management takes into account the interests of the Group and of
the individual brands in accordance with the framework laid down
by law.
M AT E R I A L C H A N G E S I N E Q U I T Y I N V E ST M E N T S

The control and profit and loss transfer agreement between

MAN SE, as the controlled company, and Truck & Bus GmbH, a
wholly owned subsidiary of Volkswagen AG, as the controlling
company, came into force on its entry in the commercial register on
July 16, 2013. The conclusion of the control and profit and loss
transfer agreement replaces the group based on the de facto
exercise of management control by a contractual group, permitting
considerably more efficient and less bureaucratic cooperation
between the MAN brand and the rest of the Volkswagen Group.
Noncontrolling interest shareholders of MAN SE have the right to
tender MAN ordinary and preferred shares in Truck & Bus GmbH
during, and two months after the conclusion of, the award
proceedings instituted in July 2013 to review the appropriateness of
the cash settlement set out in the agreement in accordance with
section 305 of the Aktiengesetz (AktG German Stock Corporation
Act) and the cash compensation in accordance with section 304 of
the AktG. As of December 31, 2014, Truck & Bus GmbH held 75.3%
of the ordinary shares and 45.2% of the preferred shares in MAN SE.
On May 13, 2014, Volkswagen announced that the voluntary
tender offer launched on March 17, 2014 for all Scania shares

L E G A L FA C T O R S I N F L U E N C I N G B U S I N E S S

Volkswagen companies are affected as are other international

companies by numerous laws in Germany and abroad. In particular, there are legal requirements relating to development, production and distribution, as well as to tax, company, commercial,
financial and capital market regulations, and those relating to labor,
banking, state aid, energy, environmental and insurance law.

L I ST O F S H A R E H O L D I N G S O F VO L K SWA G E N A G
www.volkswagenag.com/ir

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Corporate Governance Report

Corporate Governance
Report
Transparent and responsible corporate governance takes the highest priority in our daily work.
We regard it as one of the key conditions for strengthening the trust of our customers and investors,
continually increasing the Companys value and securing the future of the Volkswagen Group.

be complied with, with the exception of the following articles for the
reasons stated below.
> a) 4.2.3(4) (severance payment cap)
A severance payment cap is included in new Board of Management contracts. However, this is not the case for contracts
entered into with members of the Board of Management
commencing their third or subsequent term of office provided
that no cap was set in the first contract. Existing rights were
protected in this respect.
> b) 5.1.2(2) sentence 3 (age limit for members of the Board of
Management)
An age limit for members of the Board of Management is not
deemed appropriate, as the ability to successfully lead the
Company does not generally cease when a certain age is reached.
A fixed age limit could also have a discriminatory effect. In the
interests of the Company, it may be necessary to appoint someone beyond the age of 65. A fixed age limit therefore does not
seem reasonable.
> c) 5.3.2 sentence 3 (independence of the Audit Committee Chairman)
Based on the wording of the German Corporate Governance
Code, it is unclear whether the Audit Committee Chairman is
independent as defined by article 5.3.2 sentence 3 of the
German Corporate Governance Code. Any absence of independence could result from the Audit Committee Chairmans
membership of the Supervisory Board of Porsche Automobil
Holding SE, his kinship with other members of the Supervisory
Board of the Company and of Porsche Automobil Holding SE, his
indirect minority interest in Porsche Automobil Holding SE and
his business relationships with other members of the Porsche
and Pich families, who also hold an indirect interest in Porsche
Automobil Holding SE. However, according to the Supervisory
Board and the Board of Management, these relationships do not
constitute a conflict of interest or impair the Audit Committee
Chairmans ability to perform his duties. As a precautionary
measure, however, this exception is declared here.

A B L U E P R I N T F O R S U C C E S S F U L C O R P O R AT E G O V E R N A N C E :
T H E G E R M A N C O R P O R AT E G O V E R N A N C E C O D E

The German Corporate Governance Code contains recommendations and suggestions for good and responsible corporate
governance. It was prepared by the government commission
established for the purpose on the basis of the material statutory
provisions and nationally and internationally accepted standards of
corporate governance. The government commission reviews the
German Corporate Governance Code in light of national and
international developments on an annual basis and updates it as
necessary. The Board of Management and the Supervisory Board of
Volkswagen AG base their work on the recommendations and
suggestions of the German Corporate Governance Code. We
consider transparent and responsible corporate governance to be a
key condition for sustainably increasing the Companys value. It
helps strengthen the trust of our customers and investors in our
work and meet the steadily increasing demand for information
from national and international stakeholders.
D E C L A R AT I O N S O F C O N F O R M I T Y
( A S O F T H E D AT E O F T H E R E L E VA N T D E C L A R AT I O N )

The Board of Management and the Supervisory Board of Volkswagen AG issued the annual declaration of conformity with the
German Corporate Governance Code as required by section 161 of
the Aktiengesetz (AktG - German Stock Corporation Act) on
November 21, 2014 with the following wording:
The Board of Management and the Supervisory Board hereby
declare that, in the period since the last declaration of conformity
dated November 22, 2013 was issued, the recommendations by the
Government Commission on the German Corporate Governance
Code dated May 13, 2013 published by the German Federal
Ministry of Justice in the official section of the Federal Gazette
(Bundesanzeiger) on June 10, 2013 and the identical recommendations dated June 24, 2014 (German Corporate Governance
Code) published in the official section of the Federal Gazette on
September 30, 2014 have been complied with and will continue to
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Corporate Governance Report

d) 5.4.1(4 to 6) (disclosure regarding election recommendations)

With regard to the recommendation in article 5.4.1(4 to 6) of the
German Corporate Governance Code on the disclosure of particular circumstances for election recommendations of the Supervisory Board to the Annual General Meeting, the requirements of
the Code are vague and their boundaries unclear. To this extent,
the Board of Management and the Supervisory Board therefore
declare a departure from the Code as a precautionary measure.
Nevertheless, the Supervisory Board will endeavor to meet the
requirements of article 5.4.1(4 to 6).
> e) 5.4.6(2) sentence 2 (performance-related remuneration of
members of the Supervisory Board)
The remuneration of the Supervisory Board is determined by the
shareholders in Article 17(1) of the Volkswagen AG Articles of
Association by means of a link to the dividend, among other
things. To this extent, we assume that the variable compensation
component is linked to the sustainable growth of the enterprise
in line with the provisions of article 5.4.6(2) sentence 2 of the
German Corporate Governance Code. However, as differing
interpretations of this cannot be ruled out, a departure from this
recommendation of the Code is declared as a precautionary
measure.
The current declaration of conformity is also published on our
website, www.volkswagenag.com/ir, under the heading Corporate
Governance, menu item Declarations.
The suggestions of the current version of the German Corporate Governance Code, with the exception of the suggestion in
article 5.1.2(2) sentence 1 (Appointment period for first-time
appointments to the Board of Management), are complied with in
full. The Supervisory Board decides the appointment period for
each first-time appointment to the Board of Management on an
individual basis, taking the best interests of the Company into
account.
Our listed subsidiaries AUDI AG, MAN SE and Renk AG have
also issued declarations of conformity with the German Corporate
Governance Code.
At Scania AB, the management and supervisory functions are
split between the Annual General Meeting, the Board of Directors,
and the President and CEO. They are governed by the articles of
association, Swedish company law and other laws and regulations.
The declarations of conformity of our listed subsidiaries can be
accessed at the websites below. In addition, further information on
corporate governance at Scania AB can be found at the address
provided.
>

C O M P O S I T I O N O F T H E S U P E R V I S O RY B O A R D

In view of the purpose of the Company, its size and the extent of its
international activities, the Supervisory Board of Volkswagen AG
strives to take the following criteria into account in its composition:
> At least three members of the Supervisory Board should be
persons who embody in particular the characteristic of internationality.
> At least four shareholder representative members of the Supervisory Board should be persons who do not represent potential
conflicts of interest, particularly conflicts of interest that could
arise through a position as a consultant or member of the
governing bodies of customers, suppliers, lenders, or other third
parties.
> In addition, at least four of the shareholder representatives must
be persons who are independent as defined by article 5.4.2 of the
German Corporate Governance Code.
> At least three Supervisory Board members should be women,
including at least two female shareholder representatives.
> In addition, proposals for elections should not normally include
persons who will have reached the age of 75 by the time the
election takes place.
The above criteria have been met.

D EC L A RATION OF CON F OR MITY OF VOLKSWAG EN AG

www.volkswagenag.com/ir
D E C L A R AT I O N O F CO N F O R M I T Y O F AU D I AG
www.audi.com/cgk-declaration
D E C L A R AT I O N O F CO N F O R M I T Y O F M A N S E
www.man.eu/corporate
D E C L A R AT I O N O F CO N F O R M I T Y O F R E N K AG
www.renk.biz/corporated-governance.html
CO R P O R AT E G OV E R N A N C E AT S C A N I A A B
www.scania.com/scania-group/corporate-governance

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Corporate Governance Report

and sales and the Group Board of Management member for

procurement, among others, stressed the importance of compliance to employees, both for their own departments and for the
Company as a whole.

C O O P E R AT I O N B E T W E E N T H E B O A R D O F M A N A G E M E N T A N D T H E
S U P E R V I S O RY B O A R D

The Supervisory Board advises and monitors the Board of

Management with regard to the management of the Company. It is
directly involved in decisions of fundamental importance to the
Group. The Board of Management and Supervisory Board of
Volkswagen AG consult closely on the strategic orientation of the
Volkswagen Group. The two boards jointly assess the progress made
in implementing the strategy at regular intervals. The Board of
Management reports to the Supervisory Board regularly, promptly
and comprehensively in both written and oral form on all issues of
relevance to strategy, planning, the development of the business,
the risk situation, risk management and compliance.
More information on the cooperation between the Board of
Management and the Supervisory Board of Volkswagen AG and on
the work and structure of the committees of the Supervisory Board
can be found in the Report of the Supervisory Board on pages 7 to
11 of this annual report. Information on the members of the Board
of Management and Supervisory Board, as well as on the
Supervisory Board committees, can be found on pages 70 to 73.

Preventive compliance management system

Compliance is an important part of the Governance, Risk and

Compliance (GRC) organization in the Volkswagen Group (see the
Report on Risks and Opportunities starting on page 160). As part of
this, Volkswagen adopts a preventive compliance approach and
aims to create a corporate culture that stops potential breaches
before they occur by raising awareness and educating employees.
Group Internal Audit and Group Security regularly perform the
necessary investigative activities, systematically monitor compliance and perform random checks regardless of any suspicion of
infringements, as well as investigating specific suspected breaches.
Responses are implemented by the Human Resources and Group
Legal departments. These processes are closely interrelated, in line
with the concept of a comprehensive compliance management
system. Nevertheless, we are aware that even the best compliance
management system can never entirely prevent the criminal actions
of individuals.
Various bodies support the work of the compliance organization at Group and brand company level. These include the
Compliance Board at senior management level and the core Compliance team, which ensures coordination with the functional areas.

R E M U N E R AT I O N R E P O R T

Extensive explanations of the remuneration system and the individual remuneration of the members of the Board of Management
and the Supervisory Board may be found in the Remuneration
Report on pages 59 to 69 of the management report, in the notes to
the consolidated financial statements on page 302 and on page 55
of the notes to the annual financial statements of Volkswagen AG.

Focal points in 2014

Each year, detailed compliance risk assessments are carried out

across the Group as part of the standard GRC process. The results
are factored into the risk analyses performed by the Volkswagen
Group, the brands and the companies, and into the Compliance
Program planning.
Compliance activities in 2014 focused on further developing
compliance standards for the sales organization and dealings with
suppliers, among other things. The subject of human rights and
the Code of Conduct in the supplier chain was driven forward in
close cooperation with Group Procurement.
The Group Chief Compliance Officer is supported by 14 Chief
Compliance Officers or compliance contact persons (staff who are
responsible at the brands, the Financial Services Division and
Porsche Holding GmbH, Salzburg). They are supported by compliance officers in the Group companies. In total, staff in 66
countries are employed in the GRC function.

C O R P O R AT E G O V E R N A N C E D E C L A R AT I O N

The corporate governance declaration is part of the combined

management report and is permanently available on our website at
www.volkswagenag.com/ir under the heading Mandatory
Publications.
COMP LIA NC E

Compliance with international rules and the fair treatment of our

business partners and competitors are among the guiding
principles followed by our Company. Volkswagens commitment
has always gone beyond statutory and internal requirements;
voluntary obligations and ethical principles also form an integral
part of our corporate culture.
The Volkswagen Group is also active in the fight against
corruption and other illegal economic activity outside of the
Company. Since 2002, we have been a member of the United
Nations Global Compact, working with over 12,000 participants
from more than 145 countries to create a more sustainable and
fairer global economy.

Communicating compliance

The GRC organization provided information on various compliance

issues to the Groups brands and companies over the year, using a
wide range of traditional communication channels. These include
reports in various employee magazines produced by the brands,
companies and locations. Digital media such as intranet portals,
smartphone apps and tablets, blogs and newsletters are also
frequently used to provide compliance information. On Inter-

Commitment to compliance at the highest level

Compliance is a cornerstone of sustainable business a view

expressly shared by the Companys management. In the reporting
period, the Group Board of Management member for marketing

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national Anti-Corruption Day in early December 2014, a global

internal communications campaign was launched in the Volkswagen Passenger Cars brand with a compliance film produced
specially for Volkswagen. At the same time, poster campaigns also
highlighted the topic of preventing corruption.
Building on its Code of Conduct, Volkswagen has produced
guidelines on various compliance topics. These cover anti-corruption including checklists and the express prohibition of facilitation payments and competition and antitrust law. These
information documents were provided to employees either in paper
form or electronically (on the intranet and the employee portal, for
example) and made available to all brands to be adapted to their
respective specific requirements.
Directives on dealing with gifts and invitations, as well as on
making donations apply across the Group.
We have communicated the Code of Conduct to all consolidated
brand companies and established it as a fundamental part of our
corporate culture. It is also increasingly being integrated into our
operational processes. For example, since 2010, all new employment contracts entered into between Volkswagen AG on the one
part and both management staff and employees covered by
collective agreements on the other have included a reference to the
Code of Conduct and the obligation to comply with it.

Business partner check

The Company considers the excellent reputation enjoyed by the

Volkswagen Group in the business world and among the public to
be a precious asset. To safeguard its reputation, Volkswagen verifies
the integrity of its business partners (business partner check) in a
risk-oriented approach. This check allows us to find out about
potential business partners before entering into a relationship with
them, reducing the risk of starting a cooperation that could be
damaging to the Company or its business.
Ombudsman system

The Group-wide ombudsman system can be used to report any

breaches or suspicions (particularly regarding corruption) in ten
different languages to two external lawyers appointed by the Group.
Since 2014, employees providing information have had the option
of communicating with the ombudsmen via another online channel;
any breaches can be reported using a technically highly secure
electronic mailbox. Naturally, the people providing the information
need not fear being sanctioned by the Company for doing this. In
2014, the ombudsmen passed on 51 reports by people whose
details remained confidential if requested to Volkswagen AGs
Anti-Corruption Officer. In addition, the Anti-Corruption Officer
and the head of Group Internal Audit received information on a
further 89 cases directly. During local internal audits of the brands
and Group companies, 365 reports of suspected fraud were
submitted. All information is followed up. All breaches of the law or
internal regulations are appropriately punished and may lead to
consequences under employment law, including dismissal.

Learning programs, training and advice

Providing information to employees at all levels continues to be a

core component of our compliance work. In 2014, over 185,000
employees across the Group participated in a variety of different
events on the topics of compliance, the Code of Conduct, anticorruption, human rights, anti-money laundering, and competition
and antitrust law in 2014. In addition to traditional lectures and elearning programs, case studies, role playing formats and a GRC
board game form an integral part of the training provided to
employees. A compliance app for smartphones and tablets, among
other things, is available for employee information. In addition,
since 2012, all new Volkswagen AG employees have been required
to complete an e-learning program on the Groups Code of Conduct.
The subject of human rights is an integral part of this training
program. Training on competition and antitrust law is provided for
specific target groups. For example, it is a core component of the
training provided to sales and procurement employees.
Employees of all brand companies and a large number of Group
companies are able to obtain personal advice about compliance
issues, usually by contacting the compliance organization via a
dedicated e-mail address. An IT-based information and advisory
tool is available at Volkswagen AGs German locations.

Effectiveness review

We review the effectiveness of the compliance measures taken at

the Volkswagen Groups brands and companies annually using an
integrated survey, which forms part of the standardized GRC
process. We check the effectiveness of selected countermeasures as
well as management controls used to manage compliance risks. In
addition, the continuous improvement of the compliance
management system is ensured through independent reviews by
the Group Internal Audit function at the corporate units and the
regular exchange of information with external bodies, for example.

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third-party proxy whom they have appointed, or use a proxy

designated by the Company who will vote on their behalf in
accordance with their voting instructions. In addition, we offer
our shareholders the opportunity to watch the Annual General
Meetings in full on the Internet.
News and information on the Volkswagen Group are available
on our website at www.volkswagenag.com/ir. The releases and
other information are published in both English and German.
Immediately after their publication in line with legal requirements, the Companys ad hoc releases are also published on our
website at www.volkswagenag.com/ir under the heading Mandatory Publications, menu item Ad-hoc releases.
We publish directors dealings (section 15a of the WpHG) at
www.volkswagenag.com/ir under the heading Mandatory Publications, menu item Directors Dealings.
In addition, details of the notifications filed in compliance with
sections 21ff. of the Wertpapierhandelsgesetz (WpHG German
Securities Trading Act) during the reporting period can be found on
this website under the heading Mandatory Publications, menu
item Reporting of voting rights according to WpHG. Notifications
relating to other legal issues may be downloaded there under the
heading Mandatory Publications, menu item Other legal issues.
The supervisory body appointments held by Board of Management members and Supervisory Board members can be found on
pages 70 to 73 of this annual report.

RISK MANAGEMENT

Carefully managing potential risks to the Company is a key component of our daily work. Volkswagen Groups risk management
system is oriented toward identifying, assessing, communicating
and managing risks at an early stage. This system is reviewed on an
ongoing basis and adjusted in line with new conditions as necessary.
A detailed description of the risk management system and our
accounting-related internal control system can be found in the Risk
Report on pages 160 to 163 of this annual report.
The Supervisory Board has established an Audit Committee,
which monitors the financial accounting and reporting processes
and the effectiveness of the internal control system, risk management, the internal audit system and compliance, in particular. It
also supervises the audit of financial statements, particularly the
independence of the auditors, the additional services provided by
the auditors, the audit engagement, the definition of the areas of
emphasis for the audit and the agreed fee.
C O M M U N I C AT I O N A N D T R A N S PA R E N C Y

The Volkswagen Group publishes a financial calendar listing all the

relevant dates for its shareholders in its annual report and interim
reports and on its website at www.volkswagenag.com/ir. The
invitations to and the agendas for the shareholders meetings and
any countermotions received are also available on this website. At
the shareholders meetings, shareholders may exercise their voting
rights themselves, have this right exercised on their behalf by a

M A N DATO RY P U B L I C AT I O N S O F VO L K SWA G E N AG
www.volkswagenag.com/ir

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Remuneration Report
The Remuneration Report details the individualized remuneration of the Board of Management and
the Supervisory Board of Volkswagen AG, broken down into components, as well as individualized
pension provision disclosures for the members of the Board of Management. In addition, we explain
in this chapter the main elements of the variable remuneration system for the Board of Management.

PR I NC I PL ES OF A N D C HA NG ES TO B OA R D OF M A NAGEM E NT

C O M P O N E N T S O F B O A R D O F M A N A G E M E N T R E M U N E R AT I O N

R E M U N E R AT I O N

The remuneration of the Board of Management comprises nonperformance-related and performance-related components. The
non-performance-related components of the package ensure firstly
a basic level of remuneration enabling the individual members of
the Board of Management to perform their duties in the interests of
the Company and to fulfill their obligation to act with proper
business prudence without needing to focus on merely short-term
performance targets. On the other hand, performance-related
components, dependent among other criteria on the financial
performance of the Company, serve to ensure the long-term impact
of behavioral incentives.
Upper limits are in place for both the overall remuneration and
the performance-related remuneration components.
The total amount shown in the Board of Management (Benefits
received) tables in accordance with the German Corporate
Governance Code comprises fixed remuneration, fringe benefits
and performance-related remuneration, and corresponds to the
definition of aggregate benefits under German GAAP.

The full Supervisory Board resolves on the remuneration system

and the total remuneration for each individual member of Volkswagen AGs Board of Management on the basis of the Executive
Committees recommendations. The remuneration of current
members of the Board of Management complies with the requirements of the Aktiengesetz (AktG German Stock Corporation Act)
and the recommendations of the German Corporate Governance
Code. In particular, the remuneration structure is focused on
ensuring sustainable business growth in accordance with the
Gesetz zur Angemessenheit der Vorstandsvergtung (VorstAG
German Act on the Appropriateness of Executive Board Remuneration) (section 87(1) of the AktG).
The remuneration system of the members of the Board of
Management was approved by the 50th Annual General Meeting on
April 22, 2010 by 99.44% of the votes cast. At the same time, the
Volkswagen Groups positive business performance made it necessary in 2013 to modify and realign Board of Management remuneration and the comparative parameters on which it is based. The
remuneration of the Board of Management was modified with the
assistance of a remuneration consultant, whose independence has
been assured by the Supervisory Board and by the Company.
The level of the Board of Management remuneration should be
appropriate and attractive in the context of the Companys national
and international peer group. Criteria include the tasks of the
individual Board of Management member, their personal performance, the economic situation, the performance of and outlook for
the Company, as well as how customary the remuneration is when
measured against its peer group and the remuneration structure
that applies to other areas of Volkswagen. In this context, comparative studies on remuneration are conducted on a regular basis.

Non-performance-related remuneration

The non-performance-related remuneration comprises fixed

remuneration and fringe benefits. In addition to the basic level of
remuneration, the fixed remuneration also includes differing levels
of remuneration for appointments assumed at Group companies.
The fringe benefits result from the grant of noncash benefits and
include in particular the use of operating assets such as company
cars and the payment of insurance premiums. Taxes due on these
noncash benefits were mainly borne by Volkswagen AG.
The basic level of remuneration is reviewed regularly and
adjusted if necessary.

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Performance-related remuneration

Long-Term Incentive (LTI)

The performance-related/variable remuneration comprises a

business performance bonus, which relates to business performance in the reporting period and in the preceding year, and,
since 2010, a Long-Term Incentive (LTI) plan, which is based on the
reporting period and the previous three fiscal years. Both
components of performance-related/variable remuneration are
therefore calculated on a multiyear basis and reflect both positive
and negative developments. Members of the Board of Management
can also be awarded bonuses that reflect their individual
performance.
The amounts shown in the Board of Management (Benefits
received) tables in accordance with the German Corporate Governance Code correspond to the amounts paid out for the fiscal year
in question.
The amounts shown in the Board of Management (Benefits
granted) tables in accordance with the German Corporate Governance Code are based on a mean probability scenario.
The Supervisory Board may cap the performancerelated/variable remuneration components in the event of extraordinary developments.

The amount of the LTI depends on the achievement of the targets

laid down in the Strategy 2018. The target areas are:
> Leader in customer satisfaction, measured using the Customer
Satisfaction Index,
> Leading employer, measured using the Employee Index,
> Unit sales growth, measured using the Growth Index, and
> Increase in the return on sales, measured using the Return Index.
The Customer Satisfaction Index is calculated using indicators that
quantify the overall satisfaction of our customers with the delivering
dealers, new vehicles and the service operations based on the
previous workshop visit.
The Employee Index is determined using the employment
and productivity indicators as well as the participation rate
and results of employee surveys (opinion surveys, see also the
Employees section on page 139 of this report).
The Growth Index is calculated using the deliveries to customers and market share indicators.
The Return Index is derived from the return on sales and the
dividend per ordinary share.
The indices on customer satisfaction, employees and unit sales
are aggregated and the result is multiplied by the Return Index. This
method ensures that the LTI is only paid out if the Group is also
financially successful. If the 1.5% threshold for the return on sales
is not exceeded, the Return Index is zero. This would mean that the
overall index for the fiscal year concerned is also zero.
The maximum LTI amount is capped at 4.5 million for the
Chairman of the Board of Management and 2.0 million for the
other members of the Board of Management and is based on the
four-year average of the overall indices, i.e. the reporting period
and the three preceding years.

Bonus

The bonus rewards the positive business development of the Volkswagen Group.
The business performance bonus is calculated on the basis of
the average operating profit, including the proportionate operating
profit in China, over a period of two years. A calculation floor below
which no bonus will be paid is in place. This floor was set at 5.0
billion. In addition, a cap for extraordinary developments is
explicitly provided for by limiting the maximum theoretical bonus
which, subject to the individual performance-related bonus, is
6.75 million for the Chairman of the Board of Management and
2.5 million for the other members of the Board of Management.
The system and the cap are regularly reviewed by the Supervisory
Board to establish whether any adjustments are necessary.
In addition, the Supervisory Board may increase the theoretical
business performance bonus, which is calculated on the basis of
average operating profit, by up to 50% by applying individual
adjustment factors that are not linked to the theoretical cap so as to
reward members of the Board of Management for extraordinary
individual performance (individual performance bonus). This may
take into account extraordinary performance in the area of
integration, or the successful implementation of special projects,
for example.

Members of the Board of Management with contracts entered into

on or after January 1, 2010 are entitled to payment of their normal
remuneration for six to twelve months in the event of illness.
Contracts entered into before that date grant remuneration for six
months. In the event of disability, they are entitled to the retirement
pension. Surviving dependents receive a widows pension of
66 2/3% and orphans benefits of 20% of the former member of
the Board of Managements pension.

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R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S R E C E I V E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits received under variable remuneration correspond to the amounts paid out for the fiscal year in question.

MARTIN WINTERKORN
Chairman of the Board of Management,
Research and Development

2014

2013

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense

1,617,025
300,453
1,917,478
3,148,000
10,796,000
6,296,000
4,500,000
15,861,478
0

1,486,525
421,337
1,907,862
3,001,000
10,097,000
6,002,000
4,095,000
15,005,862
0

Total remuneration

15,861,478

15,005,862

FRANCISCO JAVIER GARCIA SANZ

Procurement

Fixed remuneration
Fringe benefits

2014

2013

1,078,017

991,017

201,469

250,000

Total

1,279,486

1,241,017

One-year variable remuneration

1,169,000

1,116,500

Multiyear variable remuneration

Business performance bonus (two-year period)

4,338,000
2,338,000

4,053,000
2,233,000

LTI (four-year period)

Total
Pension expense
Total remuneration

2,000,000

1,820,000

6,786,486

6,410,517

582,686

582,246

7,369,172

6,992,763

JOCHEM HEIZMANN
China

Fixed remuneration
Fringe benefits

2014

2013

1,078,017

991,017

70,750

218,928

Total
One-year variable remuneration

1,148,767
701,400

1,209,945
669,900

Multiyear variable remuneration

4,338,000

4,053,000

Business performance bonus (two-year period)

2,338,000

2,233,000

LTI (four-year period)

2,000,000

1,820,000

Total

6,188,167

5,932,845

Pension expense
Total remuneration

1,043,832
7,231,999

1,039,420
6,972,265

* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

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R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S R E C E I V E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits received under variable remuneration correspond to the amounts paid out for the fiscal year in question.

CHRISTIAN KLINGLER
Sales and Marketing

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2014

2013

1,078,017
206,318
1,284,335
935,200
4,338,000
2,338,000
2,000,000
6,557,535
749,097
7,306,632

991,017
250,000
1,241,017
893,200
4,053,000
2,233,000
1,820,000
6,187,217
746,040
6,933,257

MICHAEL MACHT
Production
Left the Company as of July 31, 2014

2014

2013

Fixed remuneration

628,843

991,017

Fringe benefits

203,095

250,000

Total

831,938

1,241,017

One-year variable remuneration

545,533

669,900

Multiyear variable remuneration

2,530,500

4,053,000

Business performance bonus (two-year period)

1,363,833

2,233,000

LTI (four-year period)

1,166,667

1,820,000

3,907,972

5,963,917

Total
Pension expense
Total remuneration

420,061

724,321

4,328,033

6,688,238

HORST NEUMANN
Human Resources and Organization

Fixed remuneration
Fringe benefits
Total

2014

2013

1,078,017

991,017

131,027

250,000

1,209,044

1,241,017

One-year variable remuneration

935,200

893,200

Multiyear variable remuneration

4,338,000

4,053,000

Business performance bonus (two-year period)

2,338,000

2,233,000

LTI (four-year period)

2,000,000

1,820,000

6,482,244

6,187,217

Total
Pension expense
Total remuneration
* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

62

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R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S R E C E I V E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits received under variable remuneration correspond to the amounts paid out for the fiscal year in question.

LEIF STLING
Commercial Vehicles

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2014

2013

1,078,017
194,039
1,272,056
935,200
4,338,000
2,338,000
2,000,000
6,545,256
1,140,852
7,686,108

991,017
219,109
1,210,126
669,900
4,053,000
2,233,000
1,820,000
5,933,026
1,088,849
7,021,875

HANS DIETER PTSCH

Finance and Controlling

Fixed remuneration

2014

2013

1,078,017

991,017

214,851

250,000

Total

1,292,868

1,241,017

One-year variable remuneration

1,169,000

1,116,500

Multiyear variable remuneration

4,338,000

4,053,000

Business performance bonus (two-year period)

2,338,000

2,233,000

LTI (four-year period)

2,000,000

1,820,000

6,799,868

6,410,517

Fringe benefits

Total
Pension expense
Total remuneration

1,453,433

6,799,868

7,863,950

RUPERT STADLER
Chairman of the Board of Management of AUDI AG

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration
* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

63

2014

2013

1,078,017
75,085
1,153,102
935,200
4,338,000
2,338,000
2,000,000
6,426,302
473,045
6,899,347

991,017
114,293
1,105,310
893,200
4,053,000
2,233,000
1,820,000
6,051,510
468,969
6,520,479

G R O U P M A N A G E M E N T R E P O RT

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R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S G R A N T E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits granted under variable remuneration are based on a mean probability scenario.

MARTIN WINTERKORN
Chairman of the Board of Management, Research and Development

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

1,486,525
421,337
1,907,862
2,885,000
9,710,000
5,770,000
3,940,000
14,502,862
0
14,502,862

1,617,025
300,453
1,917,478
3,001,000
10,097,000
6,002,000
4,095,000
15,015,478
0
15,015,478

1,617,025
300,453
1,917,478
0
0
0
0
1,917,478
0
1,917,478

1,617,025
300,453
1,917,478
3,375,000
11,250,000
6,750,000
4,500,000
16,542,478
0
16,542,478

FRANCISCO JAVIER GARCIA SANZ

Procurement

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
250,000
1,241,017
860,000
3,900,000
2,150,000
1,750,000
6,001,017
582,246
6,583,263

1,078,017
201,469
1,279,486
1,116,500
4,053,000
2,233,000
1,820,000
6,448,986
582,686
7,031,672

1,078,017
201,469
1,279,486
0
0
0
0
1,279,486
582,686
1,862,172

1,078,017
201,469
1,279,486
1,250,000
4,500,000
2,500,000
2,000,000
7,029,486
582,686
7,612,172

JOCHEM HEIZMANN
China

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration
* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

64

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
218,928
1,209,945
645,000
3,900,000
2,150,000
1,750,000
5,754,945
1,039,420
6,794,365

1,078,017
70,750
1,148,767
669,900
4,053,000
2,233,000
1,820,000
5,871,667
1,043,832
6,915,499

1,078,017
70,750
1,148,767
0
0
0
0
1,148,767
1,043,832
2,192,599

1,078,017
70,750
1,148,767
1,250,000
4,500,000
2,500,000
2,000,000
6,898,767
1,043,832
7,942,599

G R O U P M A N A G E M E N T R E P O RT

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R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S G R A N T E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits granted under variable remuneration are based on a mean probability scenario.

CHRISTIAN KLINGLER
Sales and Marketing

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
250,000
1,241,017
860,000
3,900,000
2,150,000
1,750,000
6,001,017
746,040
6,747,057

1,078,017
206,318
1,284,335
893,200
4,053,000
2,233,000
1,820,000
6,230,535
749,097
6,979,632

1,078,017
206,318
1,284,335
0
0
0
0
1,284,335
749,097
2,033,432

1,078,017
206,318
1,284,335
1,250,000
4,500,000
2,500,000
2,000,000
7,034,335
749,097
7,783,432

MICHAEL MACHT
Production
Left the Company as of July 31, 2014

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
250,000
1,241,017
430,000
3,900,000
2,150,000
1,750,000
5,571,017
724,321
6,295,338

628,843
203,095
831,938
669,900
4,053,000
2,233,000
1,820,000
5,554,838
420,061
5,974,900

628,843
203,095
831,938
0
0
0
0
831,938
420,061
1,252,000

628,843
203,095
831,938
1,250,000
4,500,000
2,500,000
2,000,000
6,581,938
420,061
7,002,000

HORST NEUMANN
Human Resources and Organization

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration
* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

65

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
250,000
1,241,017
860,000
3,900,000
2,150,000
1,750,000
6,001,017
0
6,001,017

1,078,017
131,027
1,209,044
893,200
4,053,000
2,233,000
1,820,000
6,155,244
0
6,155,244

1,078,017
131,027
1,209,044
0
0
0
0
1,209,044
0
1,209,044

1,078,017
131,027
1,209,044
1,250,000
4,500,000
2,500,000
2,000,000
6,959,044
0
6,959,044

G R O U P M A N A G E M E N T R E P O RT

Remuneration Report

R E M U N E R AT I O N O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T ( B E N E F I T S G R A N T E D ) I N A C C O R D A N C E W I T H T H E
G E R M A N C O R P O R AT E G O V E R N A N C E C O D E *

The figures shown here as benefits granted under variable remuneration are based on a mean probability scenario.

LEIF STLING
Commercial Vehicles

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
219,109
1,210,126
645,000
3,900,000
2,150,000
1,750,000
5,755,126
1,088,849
6,843,975

1,078,017
194,039
1,272,056
669,900
4,053,000
2,233,000
1,820,000
5,994,956
1,140,852
7,135,808

1,078,017
194,039
1,272,056
0
0
0
0
1,272,056
1,140,852
2,412,908

1,078,017
194,039
1,272,056
1,250,000
4,500,000
2,500,000
2,000,000
7,022,056
1,140,852
8,162,908

HANS DIETER PTSCH

Finance and Controlling

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
250,000
1,241,017
1,075,000
3,900,000
2,150,000
1,750,000
6,216,017
1,453,433
7,669,450

1,078,017
214,851
1,292,868
1,116,500
4,053,000
2,233,000
1,820,000
6,462,368
0
6,462,368

1,078,017
214,851
1,292,868
0
0
0
0
1,292,868
0
1,292,868

1,078,017
214,851
1,292,868
1,250,000
4,500,000
2,500,000
2,000,000
7,042,868
0
7,042,868

RUPERT STADLER
Chairman of the Board of Management of AUDI AG

Fixed remuneration
Fringe benefits
Total
One-year variable remuneration
Multiyear variable remuneration
Business performance bonus (two-year period)
LTI (four-year period)
Total
Pension expense
Total remuneration
* All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.

66

2013

2014

2014 (Minimum)

2014 (Maximum)

991,017
114,293
1,105,310
860,000
3,900,000
2,150,000
1,750,000
5,865,310
468,969
6,334,279

1,078,017
75,085
1,153,102
893,200
4,053,000
2,233,000
1,820,000
6,099,302
473,045
6,572,347

1,078,017
75,085
1,153,102
0
0
0
0
1,153,102
473,045
1,626,147

1,078,017
75,085
1,153,102
1,250,000
4,500,000
2,500,000
2,000,000
6,903,102
473,045
7,376,147

G R O U P M A N A G E M E N T R E P O RT

Remuneration Report

IAS 19. Other benefits such as surviving dependents pensions and

the use of company cars are also factored into the measurement of
pension provisions. The pension obligations measured in accordance with German GAAP amounted to 95,992,020 (88,704,661);
16,616,016 (13,259,160) was added to the provision in the
reporting period in accordance with German GAAP. Current
pensions are index-linked in accordance with the index- linking of
the highest collectively agreed salary insofar as the application of
section 16 of the Gesetz zur Verbesserung der betrieblichen Altersversorgung (BetrAVG German Company Pension Act) does not
lead to a larger increase.
Retired members of the Board of Management and their
surviving dependents received 22,792,616 (9,977,972) or
22,111,951 (9,977,972) in accordance with German GAAP in the
past year. Obligations for pensions for this group of persons
measured in accordance with IAS 19 amounted to 165,668,945
(140,165,675), or 129,456,621 (125,376,525) measured in
accordance with German GAAP.
The following rule applies to Board of Management contracts
entered into for the first term of office before August 5, 2009: the
retirement pension to be granted after leaving the Company is
payable immediately if membership of the Board of Management is
not prolonged by the Company, and in other cases on reaching the
age of 63. Any remuneration received from other sources until the
age of 63 is deductible from the benefit entitlement up to a certain
fixed amount.
The following general rule applies to contracts for the first term
of office of members of the Board of Management entered into after
August 5, 2009: the retirement pension to be granted after leaving
the Company is payable on reaching the age of 63.

P O ST- E M P L O YM E N T B E N E F I T S

In the event of regular termination of their service on the Board of

Management, the members of the Board of Management are
entitled to a pension, including a surviving dependents pension as
well as the use of company cars for the period in which they receive
their pension. The agreed benefits are paid or made available on
reaching the age of 63.
The retirement pension is calculated as a percentage of the
basic level of remuneration. Starting at 50%, the individual percentage increases by two percentage points for each year of service.
In specific cases, credit is given for previous employment periods
and retirement pensions earned. The Supervisory Board has
defined a maximum of 70%. These benefits are not broken down
any further into performance-related components and long-term
incentive components. Mr. Winterkorn, Mr. Garcia Sanz, Mr.
Heizmann, Mr. Macht, Mr. Neumann and Mr. Ptsch have a
retirement pension entitlement of 70%, and Mr. Klingler and
Mr. Stadler of 60% of their basic level of remuneration as of the end
of 2014.
Mr. stling has a pension entitlement based on the deferred
compensation arrangements administered by Volkswagen Pension
Trust e.V. The benefits include a retirement pension on reaching
the age of 70 and a surviving dependents pension. Volkswagen AG
provides an annual remuneration-linked company contribution for
Mr. stling, which goes toward a pension module at the end of each
year.
On December 31, 2014 the pension obligations for members of
the Board of Management in accordance with IAS 19 amounted to
138,046,434 (107,676,518); 8,229,691 (9,416,406) was
added to the provision in the reporting period in accordance with

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G R O U P M A N A G E M E N T R E P O RT

Remuneration Report

No severance payment is made if membership of the Board of

Management is terminated for a reason for which the Board of
Management member is responsible.
The members of the Board of Management are also entitled to a
pension and to a surviving dependents pension as well as the use of
company cars for the period in which they receive their pension in
the event of early termination of their service on the Board of
Management.

E A R LY T E R M I N AT I O N B E N E F I T S

If membership of the Board of Management is terminated for cause

through no fault of the Board of Management member, the claims
under Board of Management contracts entered into since
November 20, 2009 are limited to a maximum of two years
remuneration, in accordance with the recommendation in article
4.2.3(4) of the German Corporate Governance Code (severance
payment cap). For Board of Management members who are
commencing their third or later term of office, existing rights under
contracts entered into before November 20, 2009 are grandfathered.

P E N S I O N S O F T H E M E M B E R S O F T H E B O A R D O F M A N A G E M E N T I N 2 0 1 4 ( P R I O R-Y E A R F I G U R E S I N B R A C K E T S ) 1

Pension expense

Martin Winterkorn
Francisco Javier Garcia Sanz
Jochem Heizmann
Christian Klingler
Michael Macht (left the Company as of July 31, 2014)
Horst Neumann
Leif stling
Hans Dieter Ptsch
Rupert Stadler
Total

28,565,183

(22,075,213)

582,686

18,088,648

(582,246)

(12,134,132)

1,043,832

19,444,333

(1,039,420)

(13,696,821)

749,097

7,228,262

(746,040)

(3,693,690)

420,061

(724,321)

(10,632,210)

23,654,054

(17,470,333)

1,140,852

2,954,833

(1,088,849)

(1,355,439)

20,901,411

(1,453,433)

(15,994,320)

473,045

17,209,710

(468,969)

(10,624,360)

4,409,573

138,046,434

(6,103,278)

(107,676,518)

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
2 The amount is reported in the total amount for defined benefit plans reported in the balance sheet (see note 29 to the consolidated financial statements).

68

Present value as of
December 31

G R O U P M A N A G E M E N T R E P O RT

Remuneration Report

relevant Articles of Association and also comprises a fixed

component and a variable component that is linked to the amount
of the dividend paid. This remuneration is contained in the
following figures. In fiscal year 2014, the members of the Supervisory Board received 12,149,450 (9,774,530). Of this figure,
808,500 (528,671) related to the fixed remuneration components (including attendance fees) and 11,340,950 (9,245,859)
to the variable remuneration components.

S U P E R V I S O RY B O A R D R E M U N E R AT I O N

Under Article 17 of Volkswagen AGs Articles of Association, the

remuneration of Volkswagen AGs Supervisory Board is composed
of a fixed component (plus attendance fees) and a variable component that depends on the amount of the dividend paid. The duties
performed by the respective member on the Supervisory Board are
also taken into account. Several members of the Supervisory Board
are also members of the supervisory boards of subsidiaries. The
remuneration received there is based on the provisions of the

R E M U N E R AT I O N O F T H E M E M B E R S O F T H E S U P E R V I S O RY B O A R D 1

FIXED

VARIABLE

TOTAL

Ferdinand K. Pich

TOTAL
2014

2013

171,500

1,303,800

1,475,300

1,189,300

Berthold Huber2

38,000

899,000

937,000

773,567

Hussain Ali Al-Abdulla

11,000

387,500

398,500

331,833

Ahmad Al-Sayed

10,000

387,500

397,500

167,140

Jrgen Dorn2

47,000

435,150

482,150

408,833

Annika Falkengren

15,000

581,250

596,250

494,250

Hans-Peter Fischer2

12,000

387,500

399,500

331,833

Uwe Fritsch2

12,000

387,250

399,250

331,833

Babette Frhlich2

15,000

581,250

596,250

495,250

Olaf Lies3

12,000

387,500

399,500

287,802

Hartmut Meine2

12,000

387,500

399,500

331,833

Peter Mosch2

30,500

674,250

704,750

571,156

Bernd Osterloh2

15,000

581,250

596,250

495,250

Hans Michel Pich

97,000

449,500

546,500

405,533

Ursula Pich

23,000

449,500

472,500

368,458

Ferdinand Oliver Porsche

95,500

868,000

963,500

752,967

150,000

643,250

793,250

577,950

Stephan Weil3

15,000

581,250

596,250

428,068

Stephan Wolf2

15,000

581,250

596,250

484,356

Thomas Zwiebler2

12,000

387,500

399,500

331,833

215,484

808,500

11,340,950

12,149,450

9,774,530

Wolfgang Porsche

Supervisory Board members who left in the previous year

Total

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
2 These employee representatives have stated that they will transfer their Supervisory Board remuneration to the Hans Bckler Foundation in accordance with the guidelines issued by
the German Confederation of Trade Unions (DGB).
3 Under section 5(3) of the Niederschsisches Ministergesetz (Act Governing Ministers of the State of Lower Saxony), these members of the Supervisory Board are obliged to transfer
their Supervisory Board remuneration to the State of Lower Saxony as soon as and to the extent that it exceeds 6,200 per annum. Remuneration is defined for this purpose as
Supervisory Board remuneration and attendance fees exceeding the amount of 200.

69

G R O U P M A N A G E M E N T R E P O RT

Executive Bodies

Executive Bodies
Members of the Board of Management and their Appointments
Appointments: as of December 31, 2014

PROF. DR. DR. H.C. MULT.

CHRISTIAN KLINGLER (46)

HANS DIETER PTSCH (63)

MARTIN WINTERKORN (67)

Sales and Marketing

Finance and Controlling

Chairman (since January 1, 2007),

January 1, 2010*

January 1, 2003*

Research and Development

Appointments:

Chief Financial Officer

July 1, 2000*

Messe Frankfurt GmbH, Frankfurt am Main

of Porsche Automobil Holding SE

Chairman of the Executive Board of

November 25, 2009*

Porsche Automobil Holding SE

DR.-ING. E.H. MICHAEL MACHT (54)

Appointments:

November 25, 2009*

Production

Bertelsmann Management SE, Gtersloh

Appointments:

October 1, 2010 July 31, 2014*

Bertelsmann SE & Co. KGaA, Gtersloh

FC Bayern Mnchen AG, Munich

PROF. H.C. DR. RER. POL.

ANDREAS RENSCHLER (56)

DR. RER. POL. H.C.

HORST NEUMANN (65)

Commercial Vehicles

FRANCISCO JAVIER

Human Resources and Organization

February 1, 2015*

GARCIA SANZ (57)

December 1, 2005*

Appointments (as of February 1, 2015):

Deutsche Messe AG, Hanover

Procurement
July 1, 2001*

DR. H.C. LEIF STLING (69)

Appointments:

Commercial Vehicles

PROF. RUPERT STADLER (51)

Hochtief AG, Essen

September 1, 2012*

Chairman of the Board of Management of AUDI AG

Criteria CaixaHolding S.A., Barcelona

Appointments:

January 1, 2010*

SKF AB, Gothenburg

Appointments:

EQT Holdings AB, Stockholm

FC Bayern Mnchen AG, Munich

PROF. DR. RER. POL. DR.-ING. E.H.

JOCHEM HEIZMANN (62)
China
January 11, 2007*
Appointments:

Lufthansa Technik AG, Hamburg

OBO Bettermann GmbH & Co. KG, Menden

As part of their duty to manage and supervise the

Groups business, the members of the Board of
Management hold other offices on the supervisory

Membership of statutory supervisory boards in

Germany.

* Beginning or period of membership of the Board of

Management.

Comparable appointments in Germany and abroad.

boards of consolidated Group companies and other

significant investees.

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G R O U P M A N A G E M E N T R E P O RT

Executive Bodies

Members of the Supervisory Board and their Appointments

Appointments: as of December 31, 2014

HON.-PROF. DR. TECHN. H.C.

DR. HUSSAIN ALI AL-ABDULLA (57)

ANNIKA FALKENGREN (52)

DIPL.-ING. ETH

Board Member of Qatar Investment Authority and

President and Group Chief Executive

FERDINAND K. PICH (77)

Board Member of Qatar Holding LLC

of Skandinaviska Enskilda Banken AB

(Chairman)

April 22, 2010*

May 3, 2011*

April 16, 2002*

Appointments:

Appointments:

Appointments:

Gulf Investment Corporation, Safat/Kuwait

Securitas AB, Stockholm

AUDI AG, Ingolstadt

Masraf Al Rayan, Doha (Chairman)

Dr. Ing. h.c. F. Porsche AG, Stuttgart

Qatar Investment Authority, Doha

DR. JUR. HANS-PETER FISCHER (55)

MAN SE, Munich (Chairman)

Qatar Holding LLC, Doha

Chairman of the Board of Management

Porsche Automobil Holding SE, Stuttgart

of Volkswagen Management Association

Ducati Motor Holding S.p.A., Bologna

AHMAD AL-SAYED (38)

January 1, 2013*

Porsche Holding Gesellschaft m.b.H., Salzburg

Minister of State, Qatar

Appointments:

Scania AB, Sdertlje

June 28, 2013*

Volkswagen Pension Trust e.V., Wolfsburg

Scania CV AB, Sdertlje

Appointments:

BERTHOLD HUBER (64)

Qatar Exchange, Doha

UWE FRITSCH (58)

Qatar National Bank, Doha

Chairman of the Works Council at the

(Deputy Chairman)

Volkswagen AG Braunschweig plant

IG Metall

JRGEN DORN (48)

April 19, 2012*

May 25, 2010*

Chairman of the Works Council at the

Appointments:

Appointments:

MAN Truck & Bus AG Munich plant, Chairman of the

Eintracht Braunschweig GmbH & Co KGaA,

AUDI AG, Ingolstadt (Deputy Chairman)

General Works Council of MAN Truck & Bus AG and

Porsche Automobil Holding SE, Stuttgart

Chairman of the Group Works Council and the SE

Siemens AG, Munich (Deputy Chairman)

Works Council of MAN SE

Braunschweig

Phantoms Basketball Braunschweig GmbH,

Braunschweig

January 1, 2013*
Appointments:

MAN SE, Munich

MAN Truck & Bus AG, Munich (Deputy Chairman)

DR. JUR. KLAUS LIESEN (83)

July 2, 1987 May 3, 2006*
Honorary Chairman of the Supervisory Board of
Volkswagen AG (since May 3, 2006)

Membership of statutory supervisory boards in

Germany.

* Beginning or period of membership of the Supervisory

Board.

Comparable appointments in Germany and abroad.

71

G R O U P M A N A G E M E N T R E P O RT

Executive Bodies

BABETTE FRHLICH (49)

BERND OSTERLOH (58)

DR. JUR. FERDINAND OLIVER PORSCHE (53)

IG Metall,

Chairman of the General and Group Works Councils of

Member of the Board of Management of

Department head for coordination of

Volkswagen AG

Familie Porsche AG Beteiligungsgesellschaft

Executive Board duties and planning

January 1, 2005*

August 7, 2009*

October 25, 2007*

Appointments:

Appointments:

Appointments:

Autostadt GmbH, Wolfsburg

AUDI AG, Ingolstadt

MTU Aero Engines AG, Munich

Porsche Automobil Holding SE, Stuttgart

Dr. Ing. h.c. F. Porsche AG, Stuttgart

Wolfsburg AG, Wolfsburg

Porsche Automobil Holding SE, Stuttgart

OLAF LIES (47)

Allianz fr die Region GmbH, Braunschweig

PGA S.A., Paris

Minister of Economic Affairs, Labor and Transport

Porsche Holding Gesellschaft m.b.H., Salzburg

Porsche Holding Gesellschaft m.b.H., Salzburg

for the Federal State of Lower Saxony

VfL Wolfsburg-Fuball GmbH, Wolfsburg

Porsche Lizenz- und

February 19, 2013*

Volkswagen Immobilien GmbH, Wolfsburg

Handelsgesellschaft mbH & Co KG, Ludwigsburg

Appointments:

Deutsche Messe AG, Hanover

DR. JUR. HANS MICHEL PICH (72)

DR. RER. COMM. WOLFGANG PORSCHE (71)

Demografieagentur fr die niederschsische

Lawyer in private practice

Chairman of the Supervisory Board

Wirtschaft GmbH, Hanover (Chairman)

August 7, 2009*

of Porsche Automobil Holding SE;

JadeWeserPort Realisierungs GmbH Co. KG,

Appointments:

Chairman of the Supervisory Board

AUDI AG, Ingolstadt

of Dr. Ing. h.c. F. Porsche AG

Dr. Ing. h.c. F. Porsche AG, Stuttgart

April 24, 2008*

Porsche Automobil Holding SE, Stuttgart

Appointments:

Porsche Cars Great Britain Ltd., Reading

AUDI AG, Ingolstadt

Porsche Cars North America Inc., Wilmington

Dr. Ing. h.c. F. Porsche AG, Stuttgart (Chairman)

Porsche Holding Gesellschaft m.b.H., Salzburg

Porsche Automobil Holding SE,

Wilhelmshaven (Chairman)

Container Terminal Wilhelmshaven JadeWeserPortMarketing GmbH & Co. KG, Wilhelmshaven

JadeWeserPort Realisierungs-Beteiligungs GmbH,

Wilhelmshaven (Chairman)

HARTMUT MEINE (62)

Porsche Ibrica S.A., Madrid

Director of the Lower Saxony and Saxony-Anhalt

Porsche Italia S.p.A., Padua

Regional Office of IG Metall

Schmittenhhebahn AG, Zell am See

December 30, 2008*

Volksoper Wien GmbH, Vienna

Stuttgart (Chairman)

Familie Porsche AG Beteiligungsgesellschaft,

Salzburg (Chairman)

Porsche Cars Great Britain Ltd., Reading

Porsche Cars North America Inc., Wilmington

Appointments:

Continental AG, Hanover

URSULA PICH (58)

Porsche Holding Gesellschaft m.b.H., Salzburg

KME Germany GmbH, Osnabrck

Supervisory Board member of AUDI AG

Porsche Ibrica S.A., Madrid

April 19, 2012*

Porsche Italia S.p.A., Padua

PETER MOSCH (42)

Appointments:

Schmittenhhebahn AG, Zell am See

Chairman of the General Works Council

AUDI AG, Ingolstadt

of AUDI AG
January 18, 2006*
Appointments:

AUDI AG, Ingolstadt

Porsche Automobil Holding SE, Stuttgart
Audi Pensionskasse Altersversorgung der
AUTO UNION GmbH, VVaG, Ingolstadt

Membership of statutory supervisory boards in

Germany.

* Beginning or period of membership of the Supervisory

Board.

Comparable appointments in Germany and abroad.

72

G R O U P M A N A G E M E N T R E P O RT

Executive Bodies

STEPHAN WEIL (56)

COMMITTEES OF THE SUPERVISORY BOARD

Minister-President of the Federal State of

As of December 31, 2014

Lower Saxony
February 19, 2013*

Members of the Executive Committee

Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH

STEPHAN WOLF (48)

Ferdinand K. Pich (Chairman)

Deputy Chairman of the General and

Berthold Huber (Deputy Chairman)

Group Works Councils of Volkswagen AG

Bernd Osterloh

January 1, 2013*

Dr. Wolfgang Porsche

Appointments:

Stephan Weil

Wolfsburg AG, Wolfsburg

Stephan Wolf

Sitech Sitztechnik GmbH, Wolfsburg

Volkswagen Pension Trust e.V.,
Wolfsburg

Members of the Mediation Committee in

accordance with section 27(3) of the
Mitbestimmungsgesetz (German

THOMAS ZWIEBLER (49)

Chairman of the Works Council of
Volkswagen Commercial Vehicles
May 15, 2010*

Codetermination Act)
Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH
Ferdinand K. Pich (Chairman)
Berthold Huber (Deputy Chairman)
Bernd Osterloh
Stephan Weil

Members of the Audit Committee

Dr. Ferdinand Oliver Porsche (Chairman)
Peter Mosch (Deputy Chairman)
Annika Falkengren
Babette Frhlich

Members of the Nomination Committee

Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH
Ferdinand K. Pich (Chairman)
Dr. Wolfgang Porsche
Stephan Weil

Membership of statutory supervisory boards in

Germany.

* Beginning or period of membership of the Supervisory

Board.

Comparable appointments in Germany and abroad.

73

G R O U P M A N A G E M E N T R E P O RT

Disclosures Required Under Takeover Law

Disclosures Required Under

Takeover Law
In this section, we present the disclosures relating to takeover law required by
sections 289(4) and 315(4) of the HGB.

Preferred shareholders generally have no voting rights. However,

in the exceptional case that they are granted voting rights by law (for
example, when preferred share dividends were not paid in one year
and not compensated for in full in the following year), each
preferred share also grants the holder one vote at the Annual
General Meeting. Furthermore, preferred shares entitle the holder
to a 0.06 higher dividend than ordinary shares (further details on
this right to preferred and additional dividends are specified in
Article 27(2) of the Articles of Association).
The Gesetz ber die berfhrung der Anteilsrechte an der
Volkswagenwerk Gesellschaft mit beschrnkter Haftung in private
Hand (VW-Gesetz Act on the Privatization of Shares of Volkswagenwerk Gesellschaft mit beschrnkter Haftung) of July 21, 1960,
as amended on July 30, 2009, includes various provisions in
derogation of the German Stock Corporation Act, for example on
exercising voting rights by proxy (section 3 of the VW-Gesetz) and on
majority voting requirements at the Annual General Meeting (section 4(3) of the VW-Gesetz).
In accordance with the Volkswagen AG Articles of Association
(Article 11(1)), the State of Lower Saxony is entitled to appoint two
members of the Supervisory Board of Volkswagen AG for as long as
it directly or indirectly holds at least 15% of Volkswagen AGs
ordinary shares. In addition, resolutions by the General Meeting
that are required by law to be adopted by a qualified majority
require a majority of more than four-fifths of the share capital of the
Company represented when the resolution is adopted (Article
25(2)), regardless of the provisions of the VW-Gesetz.

C A P I TA L ST R U C T U R E

Volkswagen AGs share capital amounted to 1,217,872,117.76

(1,191,009,251.84) on December 31, 2014. It was composed of
295,089,818 ordinary shares and 180,641,478 preferred shares.
This includes 22,103 preferred shares created in 2014 as a result of
the voluntary exercise of the mandatory convertible note. It also
includes 10,471,204 preferred shares created as a result of the
resolution by the Board of Management of Volkswagen AG on June
3, 2014, with the consent of the Supervisory Board, to implement a
capital increase from authorized capital against cash contributions,
while disapplying shareholders preemptive rights. Each share
conveys a notional interest of 2.56 in the share capital.
S H A R E H O L D E R R I G H T S A N D O B L I G AT I O N S

The shares convey pecuniary and administrative rights. The

pecuniary rights include in particular the shareholders right to
participate in profits (section 58(4) of the Aktiengesetz (AktG
German Stock Corporation Act)), the right to participate in
liquidation proceeds (section 271 of the AktG) and preemptive
rights to shares in the event of capital increases (section 186 of the
AktG) that can be disapplied by the Annual General Meeting with
the approval of the Special Meeting of Preferred Shareholders,
where appropriate. Administrative rights include the right to attend
the Annual General Meeting and the right to speak there, to ask
questions, to propose motions and to exercise voting rights.
Shareholders can enforce these rights in particular through actions
seeking disclosure and actions for avoidance.
Each ordinary share grants the holder one vote at the Annual
General Meeting. The Annual General Meeting elects shareholder
representatives to the Supervisory Board and elects the auditors; in
particular, it resolves the appropriation of net profit, formally
approves the actions of the Board of Management and the Supervisory Board, resolves amendments to the Articles of Association,
capitalization measures and authorizations to purchase treasury
shares; if required, it also resolves the performance of a special
audit, the removal before the end of their term of office of
Supervisory Board members elected at the Annual General Meeting
and the winding-up of the Company.

S H A R E H O L D I N G S E XC E E D I N G 1 0 % O F V OT I N G R I G H T S

Shareholdings in Volkswagen AG that exceed 10% of voting rights

are shown in the notes to the annual financial statements of
Volkswagen AG and in the notes to the Volkswagen consolidated
financial statements starting on pages 276 of this annual report.
C O M P O S I T I O N O F T H E S U P E R V I S O RY B O A R D

The Supervisory Board consists of 20 members, half of whom are

shareholder representatives. In accordance with Article 11(1) of the
Articles of Association, the State of Lower Saxony is entitled to

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G R O U P M A N A G E M E N T R E P O RT

Disclosures Required Under Takeover Law

The Annual General Meeting on April 19, 2012 resolved to

authorize the Board of Management, with the consent of the Supervisory Board, to increase the Companys share capital by a total of
up to 110.0 million (corresponding to approximately 43 million
shares) on one or more occasions up to April 18, 2017 by issuing
new ordinary and/or nonvoting preferred bearer shares including
with shareholders preemptive rights disapplied against cash
and/or noncash contributions. This authorization was partially
exercised in June 2014 by way of a capital increase through the
issuance of 10,471,204 new preferred shares from authorized
capital against cash contributions, while disapplying shareholders'
preemptive rights. This increased the share capital by 26.8 million
and generated gross proceeds of 2.0 billion. The Board of Managements authorization to increase the share capital by up to a total of
179.4 million on one or more occasions by issuing new nonvoting
preferred shares against cash contributions expired on December 2,
2014. Furthermore, the share capital can be increased by up to
102.4 million by issuing nonvoting preferred shares, in order to
settle the conversion or option rights of holders or creditors of
convertible bonds or bonds with warrants to be issued before April
21, 2015. This authorization was partially exercised in November
2012 and in June 2013 by issuing mandatory convertible notes.
Further details on the authorization to issue new shares and their
permitted uses may be found in the notes to the consolidated
financial statements on page 235.
Opportunities to acquire treasury shares are governed by
section 71 of the AktG. The Board of Management was most recently
authorized to acquire treasury shares up to a maximum of 10% of
the share capital at the Annual General Meeting on April 19, 2012.
This authorization applies until April 18, 2017 and has not so far
been exercised.

appoint two of these shareholder representatives for as long as it

directly or indirectly holds at least 15% of the Companys ordinary
shares. The remaining shareholder representatives on the Supervisory Board are elected by the Annual General Meeting.
The other half of the Supervisory Board consists of employee
representatives elected by the employees in accordance with the
Mitbestimmungsgesetz (MitbestG German Codetermination Act).
A total of seven of these employee representatives are Company
employees elected by the workforce; the other three employee representatives are trade union representatives elected by the workforce.
The Chairman of the Supervisory Board is generally a shareholder representative elected by the other members of the Supervisory Board. In the event that a Supervisory Board vote is tied, the
Chairman of the Supervisory Board has a casting vote in accordance with the MitbestG.
Information about the composition of the Supervisory Board
can be found on pages 71 to 73 of this annual report.
STAT U T O RY R E Q U I R E M E N T S A N D R E Q U I R E M E N T S O F T H E A R T I C L E S
O F A S S O C I AT I O N W I T H R E G A R D TO T H E A P P O I N T M E N T A N D
R E M O VA L O F B O A R D O F M A N A G E M E N T M E M B E R S A N D TO
A M E N D M E N T S T O T H E A RT I C L E S O F A S S O C I AT I O N

The appointment and removal of members of the Board of

Management are governed by sections 84 and 85 of the AktG, which
specify that members of the Board of Management are appointed by
the Supervisory Board for a maximum of five years. Board of
Management members may be reappointed or have their term of
office extended for a maximum of five years in each case. In
addition, Article 6 of the Articles of Association states that the
number of Board of Management members is stipulated by the
Supervisory Board and that the Board of Management must consist
of at least three persons.
The Annual General Meeting resolves amendments to the
Articles of Association (section 119(1) of the AktG). In accordance
with section 4(3) of the VW-Gesetz as amended on July 30, 2009
and Article 25(2) of the Articles of Association, Annual General
Meeting resolutions to amend the Articles of Association require a
majority of more than four-fifths of the share capital represented.

M AT E R I A L A G R E E M E N T S O F T H E PA R E N T C O M PA N Y I N T H E E V E N T
O F A C H A N G E O F C O N T R O L F O L L O W I N G A TA K E O V E R B I D

A banking syndicate granted Volkswagen AG a syndicated credit line

amounting to 5.0 billion that runs until April 2019.
The syndicate members were granted the right to call their
portion of the syndicated credit line if Volkswagen AG is merged
with a third party or becomes a subsidiary of another company.
However, this call right does not apply in the event of a merger by
absorption of Porsche Holding SE, one of its subsidiaries, or one of
its holding companies and Volkswagen AG in which Volkswagen AG
is the acquiring legal entity.

P O W E R S O F T H E B O A R D O F M A N A G E M E N T, I N PA RT I C U L A R
CO NC ER N I NG TH E IS SU E O F N EW SHA R E S A N D TH E R EPU RC HA SE
O F T R E A S U RY S H A R E S

According to German stock corporation law, the Annual General

Meeting can, for a maximum of five years, authorize the Board of
Management to issue new shares. It can also authorize the Board of
Management, for a maximum of five years, to issue bonds on the
basis of which new shares are to be issued. The Annual General
Meeting also decides the extent to which shareholders have preemptive rights to the new shares or bonds. The highest amount of
authorized share capital or contingent capital available for these
purposes is determined by Article 4 of the Articles of Association of
Volkswagen AG, as amended.

R E ST R I C T I O N S O N T H E T R A N S F E R O F S H A R E S

Volkswagen AG and Suzuki Motor Corporation have agreed mutual

approval and preemptive tender rights if the shares held by the
other contracting party are to be sold. As of the reporting date,
Volkswagen held a 19.9% stake in Suzuki.

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Business Development

Business Development
In fiscal year 2014, the global economy recorded moderate growth that just slightly exceeded the
prior-year level. Global demand for vehicles continued to rise. Amid still difficult market conditions,
the Volkswagen Group delivered more than 10 million vehicles to its customers for the first time.

M O D E R AT E G L O B A L E C O N O M I C G R O W T H

Germany

In fiscal year 2014, global economic growth increased slightly to

2.7% (2.6%). The economic situation in many industrialized
nations improved despite the continued presence of structural
obstacles. Inflation remained moderate despite the expansionary
monetary policies of many central banks. Economic growth in a
number of emerging economies was held in check by currency
fluctuations and structural deficits. In addition, the falling oil price
had a negative impact on the economy in the oil producing
countries.

Buoyed by positive consumer sentiment and the stable labor market,

the German economy saw a slight upturn in 2014, with year-on-year
growth of 1.5% (0.2%).
North America

After a moderate start to the year due to the weather conditions, the
US economy gained momentum. The easing unemployment rate
and positive consumer sentiment stimulated the economy and
contributed to growth of 2.4% (2.2%). The US dollar was stronger
overall against the euro during the period and appreciated in the
second half of the year. Canadas GDP rose by 2.4% (2.0%). The
Mexican economy gathered pace, growing by 2.0% (1.4%).

Europe/Other markets

In Western Europe, gross domestic product (GDP) recovered

compared with the previous year, growing 1.2% (0.0%). Most
northern European countries returned to a moderate growth path,
while there were signs that the recession is coming to an end in
most of the crisis-hit southern European countries. The unemployment rate in Europe declined slightly to 12.1% (12.5%). However,
unemployment in Greece and Spain was well above this average.
In Central and Eastern Europe, GDP growth decreased to an
average of 1.6% (2.2%). The economic trend in Central Europe
remained positive. In contrast, economic growth in Eastern Europe
contracted sharply, largely due to the conflict between Russia and
Ukraine and the resulting uncertainty. Russias economic output
increased only marginally in the reporting period by 0.4% (1.3%).
In South Africa, GDP increased by just 1.5% in 2014, falling
short of the comparatively low prior-year level of 2.2%. The
countrys economic development was marred by structural deficits
and social conflicts.

South America

Brazil was skirting recession during the reporting period; after a

2.5% increase in the previous year, no growth was recorded.
Argentinas economy was held back by structural deficits and the
persistent very high rate of inflation, which resulted in a 0.8%
decline in economic output (+2.9%).
Asia-Pacific

At 7.4% (7.7%), the Chinese economy continued to record robust

growth, with slightly declining momentum. In Japan, GDP growth
was held back by tax increases and amounted to 0.2% (1.6%) in
2014. After initial weakness, Indias economic growth was slightly
stronger than in the previous year at 5.9% (5.0%). At 4.4% (5.1%),
growth in the ASEAN region remained slightly below the prior-year
level.

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Business Development

ECONOMIC GROWTH

Percentage change in GDP

Global economy
USA
Western Europe
Germany
44

33

22

11

00

1
2010

2011

2012

2013

2014

G L O B A L D E M A N D F O R PA S S E N G E R C A R S R E A C H E S N E W H I G H

Europe/Other markets

Global new passenger car registrations increased by 4.5% to 73.4

million vehicles in 2014, exceeding the previous years record level.
The primary growth drivers were the Asia-Pacific region, North
America, Western Europe and Central Europe. In contrast, the
overall markets for passenger cars in Eastern Europe and South
America remained clearly below the prior-year level.

The stabilization of the passenger car markets in Western Europe,

which began in the second half of 2013, continued in the reporting
period. The number of new registrations increased again for the
first time after four years of decline. However, at 12.1 million
vehicles (+4.9%), market volumes were still down substantially on
the level before the financial and economic crisis (2007: 14.9
million vehicles). Whereas the French market almost stagnated
(+0.5%), moderate growth was recorded in Italy (+4.9%) compared
with the low prior-year volume. In Spain, the continuation of the
government purchase incentive program accelerated the recovery
process (+18.3%). Sustained high demand from private customers
led to market growth of 9.3% in the United Kingdom.
In Central and Eastern Europe, demand decreased by 6.7% to
3.6 million vehicles. This was mainly attributable to the sharp
decline in unit sales in the Russian market, which accounts for
around two-thirds of the regions total sales, due to the political
crisis. Even the government scrapping program introduced in
Russia on September 1, 2014 with the aim of promoting the
purchase of locally produced new vehicles was unable to stop
demand slumping by 10.0% to 2.3 million vehicles. In contrast, at
0.9 million passenger cars, EU markets in Central Europe posted
significant growth of 14.8%.

Sector-specific environment

The global passenger car markets turned in a very mixed performance in the reporting period. Whereas demand in major
industrialized nations recovered and the markets in the Asia-Pacific
region again recorded strong growth, markets in Eastern Europe
and South America saw sharp declines in some cases.
The continued development of the major markets of China and
Brazil and the expansion of activities in Russia, India and the
ASEAN region are still highly important for the automotive industry.
Trade restrictions have been eased in many Asian markets.
However, it cannot be ruled out that these countries will fall back on
protectionist measures in the event of another global economic
slump.

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Business Development

EXCHANGE RATE MOVEMENTS FROM DECEMBER 2013 TO DECEMBER 2014

Index based on month-end prices: December 31, 2013 = 100

EUR to USD
EUR to JPY
EUR to GBP
105

100

95
95

90
90

85
85
D

In Mexico, momentum picked up over the course of the year.

Demand increased by 6.8% to 1.1 million units, reaching its
highest level of the past eight years.
The Canadian automotive market achieved a new sales record
in fiscal year 2014, with unit sales up by 6.2% to 1.9 million
vehicles.

In the South African market, passenger car sales declined by 2.5%

to 439 thousand vehicles. This was primarily due to weaker economic growth and rising mobility costs.
Germany

In fiscal year 2014, demand for passenger cars in Germany grew for
the first time since 2011, rising by 2.9% on the weak prior-year
level to 3.0 million units due to a positive macroeconomic environment. However, this increase was confined to new passenger car
registrations for business customers (+5.8%); demand from private
customers was down by 1.9%. Higher exports, particularly to EU
countries and East Asia, meant both passenger car exports (+2.5%
to 4.3 million vehicles) and domestic passenger car production
(+3.0% to 5.6 million vehicles) recorded stronger growth than in
the previous year.

South America

Demand for passenger cars in South America fell well short of the
prior-year level in the reporting period. The region recorded the
sharpest absolute market decline worldwide, with its lowest new
passenger car registration figures since 2009. This was primarily
due to the weak automotive business in the single market of Brazil,
where the number of new registrations fell by 9.4% to 2.5 million
units. Due to a weak economic environment, higher interest rates
and reduced consumer confidence, market volumes in Brazil were
also at their lowest level for the past five years. The above-average
decline in the number of imported passenger cars, also as a result
of the devaluation of the Brazilian real, reduced the proportion of
new registrations accounted for by imported passenger cars to
15.3% (17.0%). Brazils own vehicle exports slumped by 40.9% to
335 thousand units due to the weakness of the Argentinian market,
among other factors.
The passenger car market in Argentina contracted sharply in
2014, falling by 28.8% from the previous years record high to 461
thousand units. In addition to the tax increase on higher-value

North America

In the North American markets, sales of passenger cars and light

commercial vehicles (up to 6.35 tonnes) continued to rise in the
reporting period. The NAFTA region recorded its highest overall
market volumes since 2005, with sales up 6.0% to 19.5 million
vehicles. In the USA, the positive macroeconomic environment,
favorable financing conditions, attractive sales promotions by
manufacturers, backlog effects and low petrol prices led to a 5.9%
increase in market volumes to 16.5 million units. Demand was
particularly strong for models in the SUV segment.

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Business Development

Demand for light commercial vehicles in South America declined to

1.2 million units in the reporting period, down 7.8% on the
previous years level. Among other factors, the decline in demand
was attributable to the difficult economic conditions in the region.
However, Brazil exceeded the 2013 figure thanks to higher demand
for new SUVs, which are included in light commercial vehicles in
this market. Despite the rise in the number of new SUV models
registered in Argentina, demand for light commercial vehicles
declined significantly as a result of the tax hike on higher-value
vehicles at the beginning of the year.
At 6.8 million (1.6%), vehicle sales in the Asia-Pacific region
in fiscal year 2014 were down slightly on the previous years level.
There were significantly more new registrations in China, which
dominates the region, than in the previous year. A total of 4.3 million (4.1 million) units were sold there. Sales in India were down on
the previous year due to higher interest rates, which had a negative
impact on the economy. In Japan, pull-forward effects from a
consumption tax increase as of April 1, 2014 led to a temporary
increase in demand. However, unit sales were lower than expected
in the rest of the year. Overall, the Japanese market declined
slightly compared with the previous year.
Demand for light commercial vehicles in the ASEAN region was
mixed. While a number of small markets saw strong growth,
demand in Thailand declined sharply after government incentive
programs expired.

passenger car purchases at the beginning of the year, buyer

reluctance due to decreasing real incomes and sharp increases in
interest rates, as well as import restrictions on new vehicles, all
contributed to this development.
Asia-Pacific

The Asia-Pacific region was again the main driver of demand for
passenger cars worldwide in the reporting period. The new high in
the region was largely thanks to the Chinese passenger car market,
which recorded double-digit growth of 12.1% to 17.9 million
vehicles. Despite further restrictions on registrations in some
metropolitan areas and slightly slower economic growth, the
positive momentum on the worlds largest car market continued in
2014. This trend was bolstered in particular by the above-average
increase in SUV sales.
In Japan, the number of new vehicle registrations rose moderately year-on-year, at 4.7 million units (+2.9%). The consumption
tax increase as of April 1, 2014 led to pull-forward effects in the first
quarter and significantly dampened demand in the rest of the year.
Passenger car sales on the Indian market increased slightly in
the reporting period, up 2.2% to 2.4 million units. In particular, the
cut in excise tax rates for vehicles, among other things which was
extended to the end of 2014 supported the recovery in the automotive markets.
In the ASEAN region, passenger car sales declined by 4.4% to
2.3 million units due to a slump in demand in Thailand. Other
markets in the ASEAN region posted strong growth in some cases.

Demand for mid-sized and heavy trucks with a gross weight of more
than six tonnes fell short of the prior-year level in fiscal year 2014.
With 2.4 million new registrations, 6.7% fewer vehicles were sold
worldwide than in 2013. Demand dropped by 13.0% in the truck
markets that are relevant for the Volkswagen Group.
In the Western European market, demand was down 9.1%
compared with the previous year, with a total of 225 thousand
vehicles sold in the reporting period. In 2013, unit sales were
positively impacted by the purchases pulled forward ahead of the
Euro 6 emission standard. In Germany, the number of new
registrations was down slightly on the prior-year figure.
In Central and Eastern Europe, the number of new vehicle
registrations decreased by 15.1% to 142 thousand units. In Russia,
the regions biggest market, sales failed to reach the prior-year level,
declining by 21.3% to 81 thousand units. This was largely attributable to the low oil price, the still weak ruble and the more difficult
financing conditions as a result of the tense political situation.

R EG IO NA L D EM A N D F O R COM M E RC IA L V E H IC LE S M IX ED

Demand for light commercial vehicles was down slightly year-onyear. A total of 10.7 million vehicles were sold worldwide, representing a decline of 1.3%.
The demand trend in Western Europe was positive thanks to the
improved economic environment. Sales were up 8.5% on the
previous year, at a total of 1.5 million vehicles. The highest growth
rates were recorded in the United Kingdom, Spain and Italy, and
Germany saw a year-on-year increase of 4.6%.
Vehicle sales in the Central and Eastern European markets fell
short of the comparable prior-year level: 296 thousand (323 thousand) vehicles were sold in the reporting period. Demand declined
in Russia and Ukraine due to political tensions and their economic
impact. However, many smaller Central European markets
recorded growth.
In North America, light commercial vehicles up to 6.35 tonnes
are allocated to the passenger car market.

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Business Development

Overall, the merchant shipping market recorded slight year-onyear growth. Demand for special ships remained high in fiscal year
2014. The markets for government vessels, cruise ships and ships
for transporting liquid natural gas (LNG) remained at the previous
years high level. Due to the decline in the price of oil and the higher
costs for international oil companies, new orders for drillships to
exploit new reserves fell short of expectations. Overall, China,
Korea and Japan remained the dominant shipbuilding countries.
The marine market saw a slightly positive trend overall compared
with the previous year.
Economic growth in developing countries and emerging
markets, which are the key regions for MANs power plant solutions,
slowed in 2014, although the demand for energy supply solutions is
still high in these markets. The Middle East, Africa and Southeast
Asia remained important regions. In North America, the project
volume increased due to the availability of shale gas. Demand for
decentralized diesel and gas engine power plants saw a significant
year-on-year decline overall with a persistent trend away from oilfired power plants toward dual-fuel and gas-fired power plants.
However, the more difficult financing conditions and crises with
global ramifications led to longer project lead times.
The market for the construction of turbomachinery such as
turbines and compressors was mainly dominated by contracts
awarded in connection with global investment projects in oil and
chemical facilities. Project volumes remained high in the oil and
gas industry; however, competitive pressure rose as a result of the
weak US dollar in the first half of the year and the devaluation of the
yen. Demand for turbomachinery in the processing industry
remained at a low level in 2014 due to a slowdown in the relevant
markets in countries such as China, India and Brazil, as well as the
investor uncertainty caused by political crises. This further
increased competitive pressure. The overall market for turbomachinery declined moderately compared with the previous year.
Although the after sales market recorded slightly positive
growth overall in the reporting period, there was no return to the
very high growth rates seen between 2010 and 2012.
The development of offshore wind energy again fell well short of
the expectations in 2014. This was largely attributable to the
ongoing technical problems, particularly in relation to infrastructure, and the limited financing options.

In the North American markets, demand for mid-sized and heavy

trucks (more than 6.35 tonnes) reached 470 thousand (438 thousand). Impetus from the labor market, the construction and energy
sector, and ongoing high demand for replacement vehicles in the
heavy truck segment led to higher demand in the US market in
particular. New registrations in the USA increased by 10.2% to 398
thousand vehicles.
Demand in South America was weaker year-on-year, at
198 thousand (235 thousand) units. The poorer macroeconomic
environment in Brazil, high inflation and the recessionary trends
in Argentina were the major causes of this decline. At 134 thousand
vehicles, sales in the Brazilian market were down 10.5% on the
prior-year level.
The volume of new vehicle registrations in the Asia-Pacific
region (excluding the Chinese market) remained level year-on-year
at 469 thousand. Demand in China, the worlds largest truck
market, was down 14.5% year-on-year at a total of 783 thousand
units. Alongside the slightly slower pace of economic growth, this
decline was attributable to the diminishing pull-forward effects
from the introduction of the latest emission standard, as well as
other factors. Demand in India increased overall in 2014: new
registrations were up 5.5% on the previous year at 195 thousand
vehicles. A more favorable investment climate following the change
of government in May 2014, new infrastructure projects and
demand for replacement vehicles in the heavy truck segment were
responsible for this development.
Demand for buses, both globally and in the markets that are
relevant for the Volkswagen Group, was lower than in the previous
year. In Western Europe, too, fewer buses were sold than in 2013.
This was partly due to the introduction of the Euro 6 emission
standard, which had pulled forward some of the demand from 2014
to 2013.
TRENDS I N TH E MARKETS FOR POWER ENGI NEERI NG

The markets for power engineering are subject to differing regional

and economic factors. Consequently, their business growth trends
are generally independent of each other.
The merchant shipbuilding market (for container and freight
ships, for example) was again dominated by significant overcapacity
in the reporting period. This situation was exacerbated by the
continued high number of deliveries, which further crowded the
market. Volatile but declining fuel prices and slightly rising freight
rates helped counter this trend in the merchant shipping business.
The further improvement in the financial situation of established
shipping companies should also be viewed positively.

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Business Development

DEMA N D FOR FI NA NCIA L SERVIC ES

Global demand for automotive-related financial services remained

high in fiscal year 2014. Customers are increasingly optimizing
their total spend on personal mobility, so the trend toward just
using a car occasionally, rather than actually buying one, continued.
Demand for new mobility services such as carsharing continued to
grow.
In a difficult economic environment with stricter regulatory
requirements, demand for financial services increased in Europe.
After-sales products such as maintenance agreements, spare parts
and insurance saw an encouraging rise in demand. Sales of
financial services were bolstered by higher vehicle sales, which
resulted in particular from a recovery of the Spanish market and
continued market growth in the United Kingdom. Demand for
financial services benefited considerably from the still high
penetration rates.
The finance and leasing business again grew in Germany in the
fiscal year. Alongside traditional finance products, expanding the
insurance and service business was a particular focus.
In North America, demand for financial services in fiscal year
2014 was also up again on the previous year. In the USA, the market
for new vehicle financing registered slower growth, while the
market for leasing through captive financial service providers grew
sharply. In Mexico, consumers were increasingly willing to make
use of financial products, pushing the sales of financial services
here to a new all-time high.
The negative macroeconomic trend in Brazil continued in 2014.
This trend was also increasingly apparent in lending for new cars.
Although the Consorcio product a lottery-style savings plan was
very popular, it was also impacted by declining volumes in the
passenger car market. In Argentina, the uncertain economic situation and new regulatory conditions dented sales of automotiverelated financial services.
The Asia-Pacific region again saw growth in 2014. Many buyers
used financial services to realize their wish for a car. In China, the
proportion of loan-financed vehicle purchases rose to more than
25% in the past year. Despite increasing restrictions on registrations in metropolitan areas, there is still considerable potential
to acquire new customers for automotive-related financial services,
particularly in the interior of the country. Korea and India also
registered sharp growth in demand for financial services, while
demand in the Australian and Japanese markets remained stable at
a high level.
South Africa recorded a similar positive trend.

81

The financial services market in the commercial vehicles segment

continued to see a trend towards optimizing total costs in the midsized and heavy commercial vehicles category in 2014. Innovative
transportation solutions are becoming increasingly important to
customers for differentiating between providers.
N EW GROU P MODELS I N 2014

The Volkswagen Group selectively expanded its model portfolio in

key segments in the reporting period. Additionally, we introduced
new products based on the Modular Transverse Toolkit (MQB). This
will form the basis for many other new models in the coming years.
The Groups range now comprises around 335 passenger car,
comercial vehicle and motorcycle models, and their derivatives.
The Groups product range covers almost all key segments and body
types, with offerings from small cars to super sports cars in the
passenger car sector, and from pickups to heavy trucks and buses in
the commercial vehicles sector, as well as motorcycles. We will
continue to resolutely move into unoccupied market segments that
offer profitable opportunities for us.
The Volkswagen Passenger Cars brand launched the Golf
Sportsvan onto the market in the past year. The successor to the
Golf Plus boasts an impressive sporty design and intelligent use of
space. A further highlight in 2014 was the unveiling of the new
generation of Europes most successful company car: the Passat.
The new saloon and estate models herald a new era for design and
proportions, engines and drive systems, infotainment and assistance systems, as well as safety, convenience and driving pleasure.
Following on the heels of the e-up!, the brands first production
vehicle to run on electrical power that we launched in 2013, the
Golf GTE with a plug-in hybrid drive and the e-Golf, the electric
version of our bestseller, took their place in dealer showrooms in
2014. The popular Polo in the small car segment, the Jetta and the
sporty Scirocco were also upgraded. Volkswagen Passenger Cars
met special customer and market requirements in key regions
outside Europe through product upgrades and country-specific
models. In light of this, a version of the up!, a double cab version of
the robust Saveiro and upgrades to the compact Fox and versatile
Suran were among the solutions introduced in South America.
The Audi brand once again proved its technical and sporting
credentials in 2014. The A3 range, which is based on the MQB, was
expanded in the reporting period and now includes the S3 Saloon
and the A3 and S3 Cabriolet, among others. Added to this were

G R O U P M A N A G E M E N T R E P O RT

Business Development

economical derivatives with alternative drive technology such as the

Audi A3 Sportback e-tron with a plug-in hybrid drive and the
natural gas-powered A3 g-tron. A real highlight was the new
generation of the iconic Audi TT with its innovative drive technology
and control and display concept. The A7 and A6 Saloon, Avant and
allroad quattro including the sporty derivative versions were all
upgraded.
KODA scored points in 2014 with the new edition of the Fabia
hatchback, which boasts a contemporary design and has once again
set standards in its class with its spaciousness. The new generation
Octavia family was extended to include a natural gas-powered and
an all-wheel drive version, as well as the Octavia Scout.
Spanish brand SEAT extended its Leon family in 2014 with a
five-door version of the dynamic Cupra and the new all-wheel drive
Leon X-PERIENCE. In addition, environmentally-friendly naturalgas powered TGI variants of the Leon hatchback and ST estate were
introduced in the reporting period.
In 2014, Porsche rolled out its fifth series with the Macan, a
dynamic SUV one size down from the Cayenne. In addition to the
entry-level version, the Macan is also available in S, Diesel S and
Turbo models. The 911 series was expanded to include the Targa
and a GTS version for both the Coup and the Cabriolet. Other
highlights for the reporting period included the GTS versions of the
Cayman and the Boxster, as well as the revamped Cayenne and
Panamera series. The Cayenne S E-Hybrid was delivered to dealers
as the first premium SUV with an innovative plug-in hybrid drive.
Our luxury brands also premiered new models in 2014. Bentley
launched five dynamic models: the Flying Spur V8, the Continental
GT V8 S, the Continental GTC V8 S Convertible, the Mulsanne Speed
and the Continental GT3-R. The Continental GT Speed, including
the Convertible, was upgraded. Super sports car manufacturer
Lamborghini introduced its successor to the Gallardo Coup in
2014, the Huracn. The extreme performance super sports car
features a carbon fiber and aluminum body as well as a new,
efficient petrol injection system.
Scania expanded its range of Euro 6 engines in 2014 with
several engine variants. A hybrid version of the Scania Citywide bus,
which can run on diesel or biodiesel, was added to the Citywide
series.

MAN presented an addition to the TGX series model portfolio in the

reporting period with the TGX D38, a high-performance truck with
a newly developed six-cylinder engine. MAN Diesel & Turbo
unveiled the MAN 175D, the first cylinder version of its new highspeed engine family.
Ducati launched its seventh series in 2014 with the Scrambler
model. This retro bike is currently available in the Icon version,
with additional versions to follow in 2015. New models in the
established Panigale, Diavel, Multistrada and Monster series also
reached dealers.
V O L K SWA G E N G R O U P D E L I V E R I E S

In fiscal year 2014, the Volkswagen Group increased its deliveries to

customers worldwide by 4.2% to 10,137,387 vehicles, exceeding
the 10 million mark for the first time in the Companys history. We
have thus met the target originally set for 2018 four years early. As
the chart on the next page shows, the delivery figures were higher in
all twelve months of the reporting period than in the same months
of 2013. Details of deliveries of passenger cars and commercial
vehicles are provided separately in the following.

V O L K SWA G E N G R O U P D E L I V E R I E S *

Passenger cars
Commercial vehicles
Total

2014

2013

9,490,921

9,047,417

+ 4.9

646,466

683,170

5.4

10,137,387

9,730,587

+ 4.2

* Deliveries for 2013 have been updated to reflect subsequent statistical trends.
The figures include the Chinese joint venture companies. The Saveiro model is
reported as a passenger car retrospectively as of January 1, 2013.

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VOLKSWAGEN GROUP DELIVERIES BY MONTH

Vehicles in thousands

2014
2013
1,000

900
900

800
800

700
700

600
600

500
500
J

The table on page 85 gives an overview of deliveries to customers of

the Volkswagen Group in the key individual markets and regions.
We describe the demand trends for Group models in these markets
and regions in the following sections.

PA S S E N G E R C A R D E L I V E R I E S W O R L D W I D E

With its brands, the Volkswagen Group has a presence in all

relevant automotive markets around the world. Western Europe,
China, Brazil, the USA, Russia and Mexico are currently the key
sales markets for the Group. The Group maintained its strong
competitive position in the reporting period thanks to its wide range
of attractive and environmentally friendly models. We recorded an
encouraging increase in demand in many of our key markets.
In the reporting period, the Volkswagen Group delivered
9,490,921 passenger cars to customers, exceeding the record prioryear level by 4.9%. The market as a whole only grew by 4.5% in the
same period, meaning that the Groups share of the global market
increased to 12.9% (12.8%). The Volkswagen Passenger Cars
(+1.6%), Audi (+10.5%), KODA (+12.7%), Bentley (+8.9%),
Lamborghini (+19.3%) and Porsche (+17.1%) brands recorded
their best ever delivery figures in the year under review. For the first
time in a calendar year, Volkswagen Passenger Cars sold more than
6 million vehicles and KODAs sales exceeded 1 million units.
Demand for Volkswagen Group passenger cars grew fastest in the
Asia-Pacific region, with China recording the highest absolute
increase.

Deliveries in Europe/Other markets

In Western Europe, the passenger car market as a whole stabilized

in the reporting period, growing 4.9% year-on-year. The
Volkswagen Group outperformed the market as a whole, increasing
its deliveries to customers by 6.5% to 2,912,905 units. Demand for
Group models was up year-on-year in all major markets in this
region. The Golf, Audi A3, KODA Octavia and SEAT Ibiza were
among the models to see increases. Demand for the SEAT Leon ST
was particularly strong. The Porsche Macan was successfully
launched in the market. The Group increased its share of the
passenger car market in Western Europe to 25.1% (24.9%).
The number of Volkswagen Group passenger cars delivered in
Central and Eastern Europe in the reporting period was up 1.3%
on the prior-year figure. This means that we also outperformed the
market as a whole in this region (6.7%). While demand for the
Groups vehicles in Poland and the Czech Republic, among other

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WORLDWIDE DELIVERIES OF THE GROUP'S MOST SUCCESSFUL MODELS IN 2014

Vehicles in thousands

Golf

980

Jetta

929

Passat

739

Polo

738

Tiguan

497

Lavida

477

KODA Octavia

389

Audi A4

328

The market as a whole in the USA grew by 5.9%. Demand was

particularly strong for models in the SUV segment. The Volkswagen
Group sold 2.0% fewer vehicles in the USA than in the previous year.
Demand for the Golf, Audi Q7, Audi Q5 and Porsche 911 Coup
models recorded positive growth.
The Groups sales in Mexico were up 2.0% year-on-year.
Demand for the Gol, Audi A3 and SEAT Toledo models and for the
newly launched Vento was very encouraging.
We delivered 9.6% more vehicles to customers in Canada than
in 2013. The Jetta was the most sought-after Group model. The Audi
Q5 and Porsche Macan models were also popular.

countries, was significantly higher year-on-year, sales in Russia and

Ukraine declined as a result of the political crisis. The Golf Estate,
Audi A3, KODA Rapid and SEAT Ibiza models recorded the
strongest growth. The Groups share of the passenger car market in
Central and Eastern Europe rose to 17.0% (15.6%).
The reporting period saw 3.6% fewer vehicles delivered to
customers in the declining South African passenger car market
than in 2013. However, the Polo and Audi A3 models recorded
increased demand.
Demand for Group vehicles in the Middle East region grew by
1.3% compared with the previous year. The Polo, Jetta and Golf
models were particularly popular.

Deliveries in South America

Conditions in the highly competitive South American markets

increasingly deteriorated in the reporting period. The Volkswagen
Group delivered 17.0% fewer vehicles to customers in the generally
sharply declining markets in this region than in the previous year.
The Groups share of the passenger car market in the region
declined to 17.8% (18.9%).
In the contracting Brazilian market, demand for Volkswagen
Group vehicles declined by 12.1%. However, the Saveiro, Golf,
Audi A3 and Audi Q3 models saw increases. The up! was successfully launched in the market.
In Argentina, our deliveries to customers in 2014 were down
39.2% on the prior-year level; the market as a whole fell by 30.0%.
However, the Gol was still the most popular car in terms of registrations.

Deliveries in Germany

The German passenger car market registered modest growth of

2.9% in the reporting period. In the same period, the Volkswagen
Group increased sales to customers in its home market by 4.6%
year-on-year. The Golf, Tiguan, Audi A6, KODA Rapid and SEAT
Alhambra models recorded encouraging growth rates. In addition,
the SEAT Leon ST proved extremely popular. Seven Volkswagen
Group models led the Kraftfahrt-Bundesamt (KBA German
Federal Motor Transport Authority) registration statistics in their
respective segments at the end of 2014: the up!, Polo, Golf, Passat,
Audi A6, Tiguan and Touran. The Golf continues to be the most
popular passenger car in Germany in terms of registrations.
Deliveries in North America

In North America, the number of Volkswagen Group vehicles

delivered in 2014 was on a level with the previous year. The Groups
share of the passenger car market amounted to 4.6% (4.8%).

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period. The Golf, Santana, Gran Lavida, Audi Q3, KODA Rapid and
Porsche Panamera models recorded the strongest growth.
In Japan, we handed over 3.7% more vehicles to customers in
the year under review than in 2013 and outperformed the
passenger car market as a whole, which rose by 2.9%. The Golf and
Audi A3 models in particular saw increases.
Sales in India were down 23.7% year-on-year in a slightly rising
market. The most sought-after Group model was the Polo; the
Audi Q3 and KODA Rapid models were also popular.

Deliveries in the Asia-Pacific region

The Volkswagen Group increased its passenger car sales in the AsiaPacific region by 11.2% in 2014. We thus outperformed the market
as a whole, which grew by 7.6% in the same period. The Volkswagen Groups share of the passenger car market in this region
increased to 13.3% (12.9%).
The Chinese market continued to drive growth in the AsiaPacific region in 2014, increasing by 12.1%. We delivered 12.3%
more vehicles year-on-year to customers in China in the reporting

PA S S E N G E R C A R D E L I V E R I E S TO C U ST O M E R S B Y M A R K E T *

DELIVERIES (UNITS)

Europe/Other markets

CHANGE

2014

2013

(%)

3,893,726

3,715,349

+ 4.8

Western Europe

2,912,905

2,734,534

+ 6.5

of which: Germany

1,092,675

1,044,477

+ 4.6

United Kingdom

510,481

454,400

+ 12.3

France

249,311

245,926

+ 1.4

Italy

190,671

176,231

+ 8.2

Spain

203,870

173,893

+ 17.2

Central and Eastern Europe

606,801

599,231

+ 1.3

of which: Russia

253,176

287,258

11.9

100,967

83,215

+ 21.3

95,790

75,920

+ 26.2

Other markets

374,020

381,584

2.0

of which: Turkey

128,592

126,853

+ 1.4

Czech Republic
Poland

South Africa
North America
of which: USA
Mexico
Canada

100,058

103,805

3.6

884,454

884,440

+ 0.0

599,734

611,747

2.0

189,328

185,640

+ 2.0

95,392

87,053

+ 9.6

690,101

831,465

17.0

554,828

631,383

12.1

95,086

156,443

39.2

4,022,640

3,616,163

+ 11.2

of which: China

3,668,433

3,266,235

+ 12.3

Japan

104,218

100,535

+ 3.7

India

70,656

92,561

23.7
+ 4.9

South America
of which: Brazil
Argentina
Asia-Pacific

Worldwide

9,490,921

9,047,417

Volkswagen Passenger Cars

6,118,617

6,021,750

+ 1.6

Audi

1,741,129

1,575,480

+ 10.5

KODA

1,037,226

920,750

+ 12.7

390,505

355,004

+ 10.0

11,020

10,120

+ 8.9

2,530

2,121

+ 19.3

Porsche

189,849

162,145

+ 17.1

Bugatti

45

47

4.3

SEAT
Bentley
Lamborghini

* Deliveries for 2013 have been updated to reflect subsequent statistical trends. The figures include the Chinese joint venture companies. The Saveiro model, which is sold mainly in
South America, is reported in the Volkswagen Passenger Cars brand retrospectively as of January 1, 2013.

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In the Other markets, Group sales increased by 8.0% to a total of

72,901 units: 47,166 light commercial vehicles, 23,198 trucks and
2,537 buses.
In North America, the Volkswagen Group increased its deliveries by 2,210 units to 8,331 commercial vehicles; of this figure,
6,031 were light commercial vehicles, 380 were trucks and 1,920
were buses.
Deliveries in the South American markets in the reporting
period amounted to 104,728 units, consisting of 40,948 light
commercial vehicles and 54,542 trucks. This represents a year-onyear decline of 34.9%. The main driver of this decrease was the
Brazilian market, where the negative economic trend and difficult
financing conditions led to a 39.4% decline in deliveries. 74,977
units, of which 48,799 were trucks and 7,557 were buses, were
handed over to customers. The Amarok was particularly popular in
Brazil.
In the Asia-Pacific region, the Volkswagen Groups commercial
vehicle brands delivered 35,082 units in the reporting period
22,711 light commercial vehicles, 10,190 trucks and 2,181 buses: a
total of 15.2% more than in the previous year. The T5 and the
Amarok were the most soughtafter Group models. In the Chinese
market, Group sales amounted to 4,453 light commercial vehicles,
2,253 trucks and 181 buses.

COMM E RC IA L VE H IC LE DE LIV ER I E S

The Volkswagen Group delivered a total of 646,466 commercial

vehicles to customers worldwide in the reporting period, 5.4%
fewer than in the previous year. Trucks accounted for 179,592 units
(9.3%), and buses accounted for 20,278 (11.0%). Sales by the
Volkswagen Commercial Vehicles brand were down 3.4% on the
prior-year figure, with 446,596 vehicles delivered. The MAN brand
handed over 120,088 vehicles to customers in 2014, 14.4% fewer
than in the previous year. The Scania brands deliveries were
almost unchanged year-on-year at 79,782 (0.8%).
In Western Europe, the Groups commercial vehicle sales were
up 3.5% in 2014 compared with the previous year, at a total of
361,372 units; of this figure, 292,042 were light commercial vehicles, 65,539 were trucks and 3,791 were buses. This increase was
largely attributable to the improved economic environment, which
was particularly beneficial to the market for light commercial
vehicles. The Caddy and T5 models were the most sought-after
models here.
In the period from January to December 2014, we handed over
a total of 64,052 vehicles to customers (7.2%) in Central and
Eastern Europe, consisting of 37,698 light commercial vehicles,
25,743 trucks and 611 buses. In Russia, the regions largest
market, the low oil price and persistently weak ruble due to the
tense political situation led to a 21.5% decline in deliveries to
customers. The T5 experienced the highest demand.

C O M M E R C I A L V E H I C L E D E L I V E R I E S TO C U STO M E R S B Y M A R K E T *

DELIVERIES (UNITS)

CHANGE

2014

2013

(%)

498,325

485,772

+ 2.6

361,372

349,208

+ 3.5

Central and Eastern Europe

64,052

69,039

7.2

Other markets

72,901

67,525

+ 8.0

Europe/Other markets
Western Europe

North America

8,331

6,121

+ 36.1

South America

104,728

160,834

34.9

74,977

123,816

39.4

35,082

30,443

+ 15.2

of which: Brazil
Asia-Pacific
of which: China
Worldwide
Volkswagen Commercial Vehicles
Scania
MAN

6,887

4,868

+ 41.5

646,466

683,170

5.4

446,596

462,373

3.4

79,782

80,464

0.8

120,088

140,333

14.4

* Deliveries for 2013 have been updated to reflect subsequent statistical trends. The Saveiro model, which is sold mainly in South America, is reported in the Volkswagen Passenger Cars
brand retrospectively as of January 1, 2013.

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DELIVER I ES I N TH E POWER ENGI N EER I NG SEGMENT

V O L K SWA G E N G R O U P F I N A N C I A L S E R V I C E S

Orders in the Power Engineering segment are usually part of major

investment projects. Lead times typically range from just under one
year to several years, and partial deliveries as construction progresses are common. Accordingly, there is a time lag between
incoming orders and sales revenue from the new construction business.
Sales revenue in the Power Engineering segment was largely
driven by Engines & Marine Systems and Turbomachinery, which
together generated slightly more than two-thirds of the overall
revenue volume. For example, three propulsion engine sets were
delivered to a Chinese customer under a major order for six LNG
tankers in the reporting period.

The Financial Services Division combines the Volkswagen Groups

dealer and customer financing, leasing, banking and insurance
activities, fleet management and mobility offerings. The division
comprises Volkswagen Financial Services (including the financial
services business of MAN Finance International GmbH since
January 1, 2014) and the financial services activities of Scania,
Porsche and Porsche Holding Salzburg.
The number of new contracts signed worldwide in the Customer Financing/Leasing and Service/Insurance areas rose by
14.3% year-on-year to 5.3 million. The total number of contracts
was 13.4 million as at the end of 2014, surpassing the figure at the
prior-year reporting date by 13.7%. The number of contracts in the
Customer Financing/Leasing area was up 11.5% to 8.3 million,
while the number of contracts in the Service/Insurance area
increased by 17.5% to 5.0 million. The ratio of leased or financed
vehicles to Group deliveries (penetration rate) increased to 30.7%
(29.1%) in the Financial Services Divisions markets.
In Europe, 3.7 million new contracts were signed in the
reporting period, 16.7% more than in the previous year. The number of contracts was up 10.7% to 9.4 million as of December 31,
2014. This included 5.1 million contracts in the Customer Financing/Leasing area, an increase of 7.6% on the figure for 2013. The
penetration rate in the region amounted to 43.6% (44.5%).
In North America, the Financial Services Division added
805 thousand new contracts in 2014, up 8.6% year-on-year. The
total number of contracts grew by 13.9% to 2.1 million. Of this
figure, 1.6 million were attributable to the Customer Financing/
Leasing area (+10.0%). The penetration rate increased to 56.8%
(54.4%) in this region.
In South America, 178 thousand new contracts were signed in
2014 (53.3%). The number of contracts was up 0.4% year-on-year
to 827 thousand contracts as of year-end 2014. The majority of
these were attributable to the Customer Financing/Leasing area. At
the same time, the share of leased or financed vehicles increased
from 32.3% to 33.1% of deliveries.
In the Asia-Pacific region, 595 thousand new contracts were
signed in the reporting period, an 83.0% increase on the prior-year
figure. The total number of contracts amounted to 1.1 million
(+69.6%), of which 862 thousand were attributable to the Customer Financing/Leasing area (+64.4%). The penetration rate rose
from 8.4% to 13.1% in this region.

O R D E R S R E C E I V E D I N T H E PA S S E N G E R C A R S S E G M E N T I N W E ST E R N
EUROPE

In fiscal year 2014, demand for passenger cars in Western Europe

was up year-on-year thanks to the positive development of the
regions markets. This trend is also reflected in the orders received,
which increased by 6.8% compared with the previous year.
OR D ER S R E C E IV E D FOR COMM E RC IA L V EH IC LE S

Demand for the Volkswagen Groups light commercial vehicles in

the Western European markets rose slightly year-on-year. At
301,781 vehicles, orders were up 7.1% compared with the previous
year.
Incoming orders for our trucks and buses decreased overall in
the reporting period. In Western Europe, our main sales market,
orders declined due to the introduction of the new Euro 6 emission
standard at the start of 2014. The weak economic situation in South
America, particularly Brazil and Argentina, also had a negative
impact on orders. Overall, we received orders for 204,732 (218,678)
trucks and buses in fiscal year 2014.
ORDERS RECEIVED I N TH E POWER ENGI N EERI NG SEGMENT

The long-term performance of the Power Engineering business is

determined by the macroeconomic environment. Major individual
orders lead to fluctuations in incoming orders during the year that
do not correlate with these long-term trends.
Orders received in the Power Engineering segment in 2014
amounted to 3.9 billion. Engines & Marine Systems and Turbomachinery generated the most new orders, together accounting for
almost three-quarters of the order volume. Orders were received
for liquid gas tanker and cruise ship engines, as well as for
compressor technology for a major project in Oman, among other
things.

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S A L E S TO T H E D E A L E R O R G A N I Z AT I O N

E M P L OY E E S

In 2014, the Volkswagen Groups worldwide unit sales to the dealer

organization including the Chinese joint ventures amounted to
10,217,003 vehicles, exceeding the prior-year figure by 5.0%.
Growing demand for Group models in particular in China and in
other European countries outside Germany saw sales there rise by
5.0% compared with the previous year. In Germany, the number of
vehicles sold increased by 5.1%. At 12.2%, the proportion of the
Groups sales accounted for by Germany was on a level with the
previous year (12.2%).
The Golf, Jetta and Passat were our biggest sellers last year.
Sales of the Golf, Golf Estate, up!, Audi A3 family, Audi Q3, Audi Q5,
KODA Rapid and SEAT Leon family increased most significantly.
The new Porsche Macan was also very well received by the market.
The Lavida, Santana and Sagitar models developed for the Chinese
market were likewise very popular with customers.

Including the Chinese joint ventures, the Volkswagen Group

employed an average of 583,423 people in fiscal year 2014, an
increase of 3.6% year-on-year. Our companies in Germany
employed 265,274 people on average in 2014; their share of the
headcount was on a level with the previous year, at 45.5% (45.4%).
The Volkswagen Group had 566,998 active employees (+3.9%) as of
the 2014 reporting date. In addition, 7,129 employees were in the
passive phase of their partial retirement and 18,459 young persons
were in vocational traineeships (+4.3%). The Volkswagen Groups
headcount was 592,586 employees (+3.5%) at the end of the
reporting period. Significant factors in this increase were the
volume-related expansion in growth markets, in particular in China,
and the recruitment of specialists and experts in Germany, among
other places. A total of 271,043 people were employed in Germany
(+4.1%), while 321,543 were employed abroad (+2.9%).

PRODUCTION

The Volkswagen Group produced 10,212,562 vehicles worldwide in

fiscal year 2014, representing an increase of 5.0%. Our Chinese
joint ventures produced 12.6% more units than in the previous
year, mainly due to the continued positive demand in China. The
percentage of the Groups total production accounted for by
Germany was on a level with the previous year, at 25.1% (25.3%).
In the past year, our plants worldwide produced an average of
40,626 vehicles per working day (+3.2%). The Volkswagen Group
production figures do not include the Crafter models built in the
Daimler plants.

EMPLOYEES BY DIVISION/BUSINESS AREA

as of December 31, 2014

Passenger Cars
Commercial Vehicles/Power Engineering
Financial Services
14,933
111,214

I N V E N TO R I E S

Global vehicle inventories at Group companies and in the dealer

organization were higher on December 31, 2014 than at year-end
2013 due to an increase in inventories in China in response to
demand.

466,439

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Automotive Division was slightly higher than in fiscal year 2013 and
was within the expected range. Net cash flow increased compared
with the comparable prior-year figure, largely due to earningsrelated factors. The return on investment (ROI) was up year-onyear, and we clearly exceeded the minimum required rate of return
on invested capital.
Our attractive and environmentally friendly model portfolio
impresses customers around the globe. The trust placed in us by
customers, as well as our high quality and efficiency standards,
allow us to meet and even exceed our financial targets.
The following table shows an overview of the targets set for the
reporting period and the figures actually achieved. Detailed
information on the financial key performance indicators can be
found in the Results of Operations, Financial Position and Net
Assets chapter starting on page 99.

S U M M A RY O F B U S I N E S S D E V E L O P M E N T

The Board of Management of Volkswagen AG considers business

development in the reporting period to have been positive. As
expected, we increased our deliveries to customers and maintained
our market position in 2014, despite the persistently challenging
environment. We delivered more than ten million vehicles to
customers for the first time in the reporting period, with sales in the
diverse automotive markets up by a total of 4.2%. Demand for our
vehicles grew particularly in the Asia-Pacific region and in Western
Europe compared with 2013. Sales revenue, operating return on
sales and hence operating profit were all up year-on-year and
within the forecast range.
Due to higher investments in property, plant and equipment,
investment property and intangible assets, excluding capitalized
development costs (capex), the ratio of capex to sales revenue in the

F O R E C A ST V E R S U S A C T U A L F I G U R E S

Deliveries to customers

Actual 2013

Forecast for 2014

Actual 2014

9.7 million

moderate growth

10.1 million

197.0 billion

+/ 3%

202.5 billion

5.9%

5.5 6.5%

6.3%

11.7 billion

within the forecast range

12.7 billion

140.1 billion

+/ 3%

143.6 billion

6.4%

5.5 6.5%

6.8%

9.0 billion

within the forecast range

9.8 billion

34.9 billion

+/ 3%

33.9 billion

0.8 billion

moderate growth

0.9 billion

22.0 billion

+/ 3%

24.9 billion

8.5%

8.0 9.0%

7.7%

1.9 billion

within the forecast range

1.9 billion

Volkswagen Group
Sales revenue
Operating return on sales
Operating profit
Passenger Cars Business Area
Sales revenue
Operating return on sales
Operating profit
Commercial Vehicles/Power Engineering Business Area
Sales revenue
Operating profit
Financial Services Division
Sales revenue
Operating return on sales
Operating profit
Capex/sales revenue in the Automotive Division
Net cash flow in the Automotive Division
Return on Investment (ROI) in the Automotive Division

89

6.3%

6 7%

6.5%

4.4 billion

moderate decline

6.1 billion

14.5%

9.0 14.5%

14.9%

G R O U P M A N A G E M E N T R E P O RT

Shares and Bonds

Shares and Bonds

Volkswagen AGs ordinary and preferred shares underperformed the market as a whole in fiscal 2014
in a volatile market environment. Volkswagen further strengthened its liquidity and capital base
through the issuance of hybrid notes and through a capital increase in connection with the
acquisition of all outstanding Scania shares.

policy initially led to an uptrend, prices came under pressure once

again as a result of escalating political tensions in the Middle East
and the conflict between Russia and Ukraine. Investors were also
unsettled by concerns about payment problems at Portuguese banks
and negative economic indicators from Europe.
The downward trend continued into the final quarter. Capital
market participants were unnerved by weak economic data from
Germany, among other countries, as well as concerns about
ongoing economic developments in key industrialized nations and
emerging markets. This led to a clear drop in the DAX, which
recorded its low for the year of 8,572 points on October 15, 2014.
The equity markets then rallied significantly as the fourth quarter
progressed on the back of unexpectedly strong economic data from
the USA and Germany and a slump in oil prices. The DAX reached
10,087 points on December 5, 2014, its highest closing price for
the year, before softening slightly in the last few weeks of trading for
2014.
At the end of 2014, the DAX had reached 9,806 points, a slight
increase on the previous years figure (+2.7%). The EURO STOXX
Automobiles & Parts closed the year at 479 points, 4.2% higher
than on the last day of trading in 2013.

EQUITY MARKETS

Prices on the international equity markets experienced volatility in

fiscal 2014. The DAX rose slightly overall. Recurring uncertainties
about economic growth in key industrialized nations in particular,
as well as central banks monetary policies and geopolitical tensions
led to large price fluctuations in the markets.
The DAX moved sideways amid slight price swings during the
first quarter. Share prices rose briefly, buoyed in particular by the
World Banks increased growth forecast for the economy as a whole,
positive economic data and corporate news from the eurozone.
Nevertheless, investors were rattled by expectations that the US
Federal Reserve would pursue a more restrictive monetary policy,
concerns about a weak phase in the Chinese economy, fears that
emerging economies exchange rates would fall further and doubts
about the global economic recovery. Rising tensions between
Russia and Ukraine also depressed prices.
The share price volatility continued into the beginning of the
second quarter. Better-than-expected economic data from China
and hopes that the Fed would continue its expansionary monetary
policy temporarily stabilized prices in an environment marked by
anxiety over the effects of the crisis in Ukraine, weak quarterly
figures from the USA and concerns about continued volatile
exchange rates in developing countries. However, the European
Central Banks decision to continue its loose monetary policy,
healthy corporate results in the eurozone and positive economic
data from the USA led to price increases later on in the quarter; the
DAX passed the 10,000 point mark in mid-June 2014.
The price gains at the end of the second quarter were followed
by a turnaround. While positive labor market and corporate data
from the USA and hopes that the European Central Bank and the
Federal Reserve would continue their expansionary monetary

M O V E M E N T S I N T H E P R I C E O F V O L K SWA G E N S S H A R E S

On the whole, Volkswagen AGs ordinary and preferred shares

trended downward in 2014 amid high volatility, underperforming
the overall market and the automotive sector.
After Volkswagen AGs ordinary shares had closed 2013 hitting
their high for the year and the Companys preferred shares had
reached a new all-time high, they started 2014 with a volatile
sideways movement before declining in line with the overall market.
At the beginning of February, the positive sales figures of individual

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SHARE PRICE DEVELOPMENT FROM DECEMBER 2013 TO DECEMBER 2014

Index based on month-end prices: December 31, 2013 = 100

Volkswagen ordinary shares

Volkswagen preferred shares
DAX
EURO STOXX Automobiles & Parts
120

110

100

90
90

80
80

70
70
D

causing Volkswagens share prices to fall. At the end of the third

quarter, the two classes of shares were trading weaker than the
overall market, which was also declining.
The positive trading environment in mid-October signaled a
turnaround, with ordinary and preferred shares recording
significant price gains in line with the overall market. The upward
trend was boosted by the publication of the positive results for the
first three quarters of 2014 at the end of October. The ordinary and
preferred shares tracked the overall market over the remainder of
the fourth quarter.
Volkswagen AGs preferred shares reached their highest daily
closing price for the year of 203.35 on January 17, 2014. They
recorded their lowest closing price for the year of 150.25 on
October 15, 2014. The Companys preferred shares closed the end
of 2014 at 184.65, down 9.6% on the prior-year figure.
Volkswagens ordinary shares also reached their highest
closing price of 197.35 on January 17, 2014. The shares traded at
their lowest daily closing price for the year of 150.70 on
October 10, 2014. The ordinary shares were trading at 180.10 on
the last day of trading in 2014, down 8.5% on the price at the end of
2013.
Additional Volkswagen share data, plus corporate news, reports
and presentations can be downloaded from our website at
www.volkswagenag.com/ir.

Group brands led to price rises. However, Volkswagen share prices

retreated again until mid-March in a declining market environment. Capital market participants were unsettled by the outlook for
fiscal year 2014, which only partly met the high expectations of
many investors and was announced when the annual financial
statements were published, as well as the announcement of the
planned acquisition of all shares of Scania and a possible associated
capital increase.
Due in particular to the positive response to the Groups sales
figures for the first quarter of 2014, increases were seen in Volkswagens shares at the beginning of April. However, the securities
waned again until mid-May and remained below the trend of the
market as a whole. Among other reasons, this was due to the
completion of the voluntary tender offer for the acquisition of all
outstanding Scania shares. As May progressed, Volkswagens
shares benefited from the upward movement of the DAX, and their
price also increased. Volkswagen AG implemented a capital
increase at the beginning of June, issuing new preferred shares
from authorized capital against cash contributions. Both classes of
shares then moved sideways before again declining in lockstep with
the market at the middle of the year.
As time progressed, reports of slower economic growth in
China and concerns that the economic recovery in Europe was
coming to an end unnerved investors in the automotive industry,

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SHAREHOLDER STRUCTURE AT DECEMBER 31, 2014

as a percentage of subscribed capital

Porsche Automobil Holding SE

31.5

Foreign institutional investors

26.3

Qatar Holding LLC

15.4

State of Lower Saxony

12.4

Private shareholders/Others

12.3

German institutional investors

2.1
0

10

20

30

40

50

60

70

80

90

100

S H A R E H O L D E R ST R U C T U R E AT D E C E M B E R 3 1 , 2 0 1 4

DIVIDEND YIELD

Volkswagen AGs subscribed capital amounted to 1,217,872,117.76

at the end of the reporting period. The shareholder structure of
Volkswagen AG as of December 31, 2014 is shown in the chart on
this page.
The distribution of voting rights was as follows at the reporting
date: Porsche Automobil Holding SE, Stuttgart, held 50.73% of the
voting rights. The second-largest shareholder was the State of
Lower Saxony, which held 20.0% of the voting rights. Qatar
Holding LLC was the third-largest shareholder, with 17.0%. The
remaining 12.3% of the 295,089,818 ordinary shares were attributable to other shareholders.
Notifications of changes in voting rights in accordance with the
Wertpapierhandelsgesetz (WpHG German Securities Trading Act)
are published on our website at www.volkswagenag.com/ir.

Based on the dividend proposal for the reporting period, the

dividend yield on Volkswagen ordinary shares is 2.7% (2.0%),
measured by the closing price on the last trading day in 2014. The
dividend yield on preferred shares is 2.6% (2.0%).
The current dividend proposal can be found in the chapter
entitled Volkswagen AG (condensed, according to the German
Commercial Code), on page 115 of this annual report.
EARNI NGS PER SHARE

Basic earnings per ordinary share were 21.84 in fiscal year 2014
(18.61). Basic earnings per preferred share were 21.90 (18.67).
In accordance with IAS 33, the calculation is based on the weighted
average number of ordinary and preferred shares outstanding in
the fiscal year.
The calculation of earnings per share for fiscal year 2014
reflects the new preferred shares issued in connection with the
capital increase from authorized capital against cash contributions
in June 2014. The effect of the mandatory convertible note with a
total volume of 3.7 billion that was issued in November 2012 and
supplemented in June 2013 must also be included. In accordance
with IAS 33.23, all potential shares that will be issued upon the
conversion of a mandatory convertible note were accounted for as
issued shares and included in the calculation of basic and diluted
earnings per share. The number of potential preferred shares to be
included is based on the most advantageous conversion rate
resulting from the minimum conversion price of 147.61. Since the
number of basic and diluted shares is identical, basic earnings per
share correspond to diluted earnings per share.
See also note 11 to the Volkswagen consolidated financial
statements for the calculation of earnings per share.

DIVIDEND POLICY

Our dividend policy matches our financial strategy. In the interests

of all stakeholders, we are pursuing continuous dividend growth so
that our shareholders can participate appropriately in our business
success. The proposed dividend amount therefore reflects our
financial management objectives in particular, ensuring a solid
financial foundation as part of the implementation of our Strategy
2018.
The dividend for ordinary and preferred shares proposed by
the Board of Management and the Supervisory Board of Volkswagen AG is 0.80 (around 20%) higher than the previous year. On
this basis, the total dividend for fiscal year 2014 is 2.3 billion (1.9
billion). The distribution ratio is based on the Groups profit after
tax attributable to Volkswagen AG shareholders and is 21.2%
(20.6%) for the reporting period. We are aiming to achieve a
distribution ratio of 30% in the medium term.

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S U C C E S S F U L H Y B R I D N OT E P L A C E M E N T A N D C A P I TA L I N C R E A S E

I N V E STO R R E L AT I O N S A C T I V I T I E S

In March 2014, the Volkswagen Group successfully placed dualtranche hybrid notes with an aggregate principal amount of 3.0
billion via Volkswagen International Finance N.V. Both tranches are
perpetual and increased the Groups equity by the full amount, net
of transaction costs.
On June 3, 2014, the Board of Management of Volkswagen AG
resolved, with the consent of the Supervisory Board, to increase the
Companys capital by issuing new preferred shares from authorized
capital against cash contributions, while disapplying shareholders
preemptive rights. The implementation of the capital increase
increased the share capital in accordance with the Articles of
Association by a notional amount of approximately 26.8 million to
approximately 1.2 billion. The placement price of the 10,471,204
new preferred shares was set at 191.00 per share, generating
gross proceeds of 2.0 billion. The new shares carry full dividend
rights retrospectively from January 1, 2014.
The hybrid notes and the capital increase served to partially
refinance the voluntary tender offer made to Scanias shareholders.

With offices in Wolfsburg, London and Beijing and the liaison office
in Herndon (USA), Volkswagen Investor Relations covers the most
important regions for the capital markets. Its international
orientation allows the Investor Relations team to maintain close
contact with investors and analysts and to hold efficient discussions
and events locally, for which there is growing demand. This broad
base also ensures that the team maintains a deep understanding of
the markets in question and intensive contact with the Volkswagen
Groups operating business, both of which are essential conditions
for compelling investor relations activities with a long-term focus.
International analysts and investors remained keenly
interested in the business development and products of the
Volkswagen Group during fiscal year 2014. The Investor Relations
team provided extensive information at roughly 900 one-on-one
discussions, roadshows and conferences at all key financial centers
worldwide about the strategic focus, current business performance
and future prospects of the Volkswagen Group and its brands. Many
of these discussions involved an exchange of ideas between capital
market participants and members of the Board of Management and
Group senior executives.
The Investor Relations team also briefed Volkswagens private
shareholders on the Companys performance at numerous events.
The team was represented at the Annual General Meeting in
Hanover, among other events, and was available to answer
shareholders questions in detail in many personal discussions. In
2014, once again, Investor Relations also provided support for
Group Treasurys extensive global capital market activities.
In addition to direct dialog, capital market participants were
supplied with the latest news and publications using the Internet.
Interest in our website was again high, underlining the tremendous
importance of digital media as an information channel and a means
of maintaining contact with private and institutional investors alike.
The Annual Media and Investor Conference held in March, the
Annual General Meeting in May and the conference calls of the
Volkswagen Group on the quarterly results for 2014 and on the
announcement of the voluntary tender offer for the acquisition of
all outstanding Scania shares in February were again broadcast live
on the Internet in 2014.
We also promptly published online all presentations given in
connection with events that were of interest to investors on our
investor relations website.

AN N UAL GEN ERA L MEETI NG

The 54th Annual General Meeting and the 12th Special Meeting of
Preferred Shareholders of Volkswagen AG were held at the Hanover
Exhibition Grounds on May 13, 2014. With 92.45% of the voting
capital present, the ordinary shareholders of Volkswagen AG
formally approved the actions of the Board of Management and the
Supervisory Board and the modification and revision of intercompany agreements. They also elected PricewaterhouseCoopers AG
Wirtschaftsprfungsgesellschaft as the auditors for fiscal year 2014
and as the auditors to review the condensed financial statements
and interim management report for the first six months of 2014.
The scheduled terms of office of Dr. Hans Michel Pich and
Dr. Ferdinand Oliver Porsche on the Supervisory Board of
Volkswagen AG expired at the end of the Annual General Meeting.
The Annual General Meeting elected them both to the Supervisory
Board for a further full term of office as a shareholder representative. In addition, Mr. Ahmad Al-Sayed, who was previously
appointed to the Supervisory Board by the court, was elected to the
Supervisory Board for a full term of office.
The Annual General Meeting also resolved to distribute a
dividend of 4.00 per ordinary share and 4.06 per preferred share
for fiscal year 2013.

FU RTH ER I N F ORM ATION ON VOLKSWAG EN SH AR ES

www.volkswagenag.com/ir

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V O L K SWA G E N S H A R E K E Y F I G U R E S

DIVIDEND DEVELOPMENT

Number of no-par value shares at Dec. 31

Ordinary shares
Preferred shares
Dividend1
per ordinary share
per preferred share
Dividend paid1
on ordinary shares
on preferred shares

2014

2013

2012

2011

2010

thousands
thousands

295,090
180,641

295,090
170,148

295,090
170,143

295,090
170,143

295,046
170,143

million
million
million

4.80
4.86
2,294
1,416
878

4.00
4.06
1,871
1,180
691

3.50
3.56
1,639
1,033
606

3.00
3.06
1,406
885
521

2.20
2.26
1,034
649
385

2014

2013

2012

2011

2010

180.10
8.5
197.35
150.70

196.90
+ 21.0
196.90
132.60

162.75
+ 57.0
162.75
106.20

103.65
2.1
136.95
84.50

105.90
+ 37.5
118.50
62.30

factor
billion

184.65
9.6
203.35
150.25
1.38
86.5

204.15
+ 18.6
204.15
138.50
1.32
92.8

172.15
+ 48.7
172.70
118.00
1.26
77.3

115.75
4.7
151.00
88.54
1.09
50.3

121.40
+ 84.7
136.90
55.83
0.99
51.9

billion
factor

90.0
0.96

87.7
1.06

77.74
1.00

57.5
0.87

46.0
1.13

2014

2013

20124

2011

2010

21.84
21.84
25.59
21.74
189.16

18.61
18.61
23.99
25.89
188.58

46.41
46.41
24.59
15.42
166.98

33.10
33.10
24.23
18.27
123.68

15.17
15.17
15.87
25.46
98.84

factor
factor
factor

8.2
8.4
8.3

10.6
10.9
7.6

3.5
3.7
10.6

3.1
3.5
5.7

7.0
8.0
4.2

%
%

2.7
2.6

2.0
2.0

2.2
2.1

2.9
2.6

2.1
1.9

2014

2013

2012

2011

2010

3.2
17.8
45.1
248.3
5.4

3.5
21.4
43.0
252.8
5.7

3.5
26.8
40.9
293.3
5.3

5.1
46.4
44.2
369.1
4.6

6.0
79.2
23.5
305.4
2.9

SHARE PRICE DEVELOPMENT 2

Ordinary shares
Closing
Price performance
Annual high
Annual low
Preferred shares
Closing
Price performance
Annual high
Annual low
Beta factor3
Market capitalization at Dec. 31
Equity attributable to Volkswagen AG shareholders
and hybrid capital investors at Dec. 31
Ratio of market capitalization to equity
KEY FIGU RES PER SHARE

Earnings per ordinary share5

basic
diluted
Operating profit6
Cash flows from operating activities6
Equity7
Price/earnings ratio8
Ordinary shares
Preferred shares
Price/cash flow ratio9
Dividend yield10
Ordinary shares
Preferred shares
STOCK EXCHANGE TURNOVER 1 1

Turnover of Volkswagen ordinary shares

Turnover of Volkswagen preferred shares
Volkswagen share of total DAX turnover

billion
million shares
billion
million shares
%

1 Figures for the years 2010 to 2013 relate to dividends paid in the following year. For
2014, the figures relate to the proposed dividend.
2 Xetra prices.
3 See page 112 for the calculation.
4 2012 figures adjusted in the 2013 annual financial statements to reflect application of
IAS 19R.
5 See note 11 to the consolidated financial statements (Earnings per share) for the
calculation. Prior-year figures adjusted in accordance with IAS 33.26.

6 Based on the weighted average number of ordinary and preferred shares outstanding
(basic), prior year adjusted according to IAS 33.26.
7 Based on the total number of ordinary and preferred shares on December 31 (excluding
potential shares from the mandatory convertible note).
8 Ratio of year-end-closing price to earnings per share.
9 Using year-end-closing prices of the ordinary shares.
10 Dividend per share based on the year-end-closing price.
11 Order book turnover on the Xetra electronic trading platform (Deutsche Brse).

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VO L K S WAG E N S H A R E DATA

SECURITIES
I D E N T I F I C AT I O N CO D E S

P R I M A RY M A R K E T I N D I C E S:
O R D I N A RY S H A R E S

PRIM ARY M ARKET INDICES:

PREFERRED SHARES

O R D I N A RY S H A R E S

CDAX, Prime All Share,

Prime Automobile, MSCI Euro,
S&P Global 100 Index

DAX, CDAX, EURO STOXX,

EURO STOXX 50,
EURO STOXX Automobiles &
Parts, Prime All Share, Prime
Automobile, Classic All Share,
MSCI Euro,
CDP Global 500 Climate
Performance Leadership Index,
CDP Global 500 Climate
Disclosure Leadership Index,
DJ Sustainability World Index,
DJ Sustainability Europe Index,
FTSE4Good

ISIN: DE0007664005
WKN: 766400
Deutsche Brse/Bloomberg:
VOW
Reuters: VOWG.DE
PREFERRED SHARES

ISIN: DE0007664039
WKN: 766403
Deutsche Brse/Bloomberg:
VOW3
Reuters: VOWG_p.DE

E XC H A N G E S

Berlin, Dsseldorf,
Frankfurt, Hamburg, Hanover,
Munich, Stuttgart, Xetra,
Luxembourg, New York*,
SIX Swiss Exchange

* Traded in the form of sponsored unlisted American Depositary Receipts (ADRs).

Five ADRs correspond to one underlying Volkswagen ordinary or preferred share.

brand board of management provided a comprehensive overview of

the sports car manufacturers development and strategy.
Another high point in the investor relations calendar followed
mid-year: on July 11, 2014, we hosted a Capital Markets Day at the
new Foshan production site in Southern China. Brand representatives and Group senior executives briefed the large numbers of
attendees comprehensively on the current development, strategy
and prospects of the brands and companies in China, the Groups
largest sales market, and answered the attendees questions in
detail. The emphasis was on Audis positioning in the Chinese
premium segment, the brand and product strategy, as well as the
results of operations of Volkswagen Group China and the growing
importance of the financial services business.
At an event for investors and analysts held on Sardinia at the
beginning of October 2014, the spotlight was on the new Passat. The
CEO and CFO of Volkswagen AG gave presentations to capital
market experts on the Groups strategy in light of the current
challenges facing the automotive industry, the Group and, above all,
the Volkswagen Passenger Cars brand. In particular, they explained
the forward-looking Future Tracks efficiency program. The two
Board of Management members and the chief development officer
of the Volkswagen Passenger Cars brand were then available for
more in-depth discussions and to answer questions. In addition,
attendees had the opportunity to test-drive the new Passat and see

H I G H L I G H T S I N T H E I N V E STO R R E L AT I O N S C A L E N D A R

The investor relations calendar began 2014 with one of the most
important events: on February 21, Volkswagen Aktiengesellschaft
resolved to make a voluntary tender offer to the shareholders of
Scania AB for the acquisition of all outstanding shares. In a conference call, the Group CFO and the Board of Management member responsible for the Groups Commercial Vehicles Business Area
explained the structure of and the strategy for the planned
transaction, as well as its financing, to analysts and investors.
The Annual Media and Investor Conference was held on the
site of the former Berlin-Tempelhof airport on March 13. The
Groups Board of Management looked back on a successful fiscal
year in 2013, answered questions from media representatives,
analysts and investors, and gave its outlook for the development of
the Company. This event was part of electrified! the e-mobility
weeks by Volkswagen. At an interactive exhibition, conference
participants were able to find out about electric mobility and testdrive electric vehicles manufactured by the Volkswagen Group. The
day before, on March 12, members of the Board of Management of
AUDI AG presented analysts and investors with information on the
premium brands performance and strategy at Audi City Berlin.
The Capital Markets Day held in Leipzig in mid-April 2014
focused on presenting the Porsche brand and showcasing the new
Porsche Macan. The CEO of Porsche and other members of the

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REFINANCING STRUCTURE OF THE VOLKSWAGEN GROUP

as of December 31, 2014

Commercial paper
5%
Money and capital
market instruments

Bonds
65%

1 year
15%

Asset-backed securities
30%

5 years
23%

> 1 to < 5 years

62%

Maturities

10

20

30

40

50

60

70

80

90

100

billion is after seven years, and the first call date for the second
tranche of 1.75 billion is after twelve years. In connection with the
voluntary tender offer for the acquisition of all outstanding Scania
shares, the issue like the capital increase through the issue of new
preferred shares served to strengthen the Groups net liquidity.
In addition, Volkswagen conducted a number of money and
capital market transactions for the Financial Services Division.
Three benchmark bonds with a value of 3.5 billion were issued in
the European region and supplemented by a series of private
placements.
Outside of the European refinancing market, the Volkswagen
Group was particularly active in the North American capital
markets and was able to exploit the favorable pricing situation to its
advantage. A total volume of USD 5.5 billion was placed through two
issues. On the Canadian capital market, the Volkswagen Group
issued securities with a volume of around CAD 575 million in an
attractive market environment.
In 2014, the Group was active in the Russian and South Korean
capital markets for the first time. Following the debut bond issue,
two further issues were successfully placed in Russia.
In the asset-backed securities segment, the Volkswagen Group
issued securities with a total value of approximately 13 billion
primarily in Europe and North America. Securities were also issued
on the Chinese ABS market for the first time.
In all refinancing arrangements, interest rate and currency risk
is generally excluded by entering into derivatives contracts at the
same time.

its merits for themselves. Product experts from Volkswagen also

provided detailed insights into the design, drivetrains and
digitization.
The Volkswagen Group was named Company of the Year 2013
by the Schutzgemeinschaft der Kapitalanleger e.V. (SdK German
Association for the Protection of Investors) on May 13, 2014. The
SdK cited sustained growth rates in the Groups operating business
combined with a shareholder-friendly corporate policy and outstanding investor relations. The selection process involved the
members of the SdK, readers of its publications and ING-DiBa
securities account clients.
REFINANCING

Our refinancing activities in 2014 were influenced by the continued

growth of the Volkswagen Group. We implemented a higher
number of capital market transactions to refinance our operating
business and strategic projects and issued bonds with a value of
approximately 30 billion.
The Volkswagen Group continues to focus on the diversification
of its issues and the expansion of its maturity profile so as to address
a broad base of investors and access new groups of investors. The
main currencies of the issues were euros, US dollars, sterling and
Canadian dollars; the share of fixed-rate refinancing was roughly
twice as high as the share of variable-rate instruments.
The largest principal amount of 3.0 billion was issued in the
form of unsecured subordinated hybrid notes. The perpetual hybrid
notes were issued in two tranches and can only be called by the
issuer. The first call date for the first tranche with a volume of 1.25

96

G R O U P M A N A G E M E N T R E P O RT

Shares and Bonds

R AT I N G S

VOLKSWAGEN AG

VOLKSWAGEN FINANCIAL SERVICES AG

VOLKSWAGEN BANK GMBH

2014

2013

2012

2014

2013

2012

2014

2013

2012

Short-term

A1

A2

A2

A1

A2

A2

A1

A2

A2

Long-term

stable

positive

positive

stable

positive

positive

stable

positive

positive

Short-term

P2

P2

P2

P2

P2

P2

P2

P2

P2

Long-term

A3

A3

A3

A3

A3

A3

A3

A3

A3

positive

positive

positive

positive

positive

positive

positive

positive

positive

Standard & Poors

Outlook
Moodys Investors Service

Outlook

The upgrade reflects the ongoing improvement forecast in debt

metrics, buoyed by higher profitability and rising cash flows in the
Automotive Division. The outlook for Volkswagen AG, Volkswagen
Financial Services AG and Volkswagen Bank GmbH is stable.
Moodys Investors Service confirmed its short-term and longterm ratings for Volkswagen AG, Volkswagen Financial Services AG
and Volkswagen Bank GmbH at P2 and A3 respectively and also left
the outlook for all three companies unchanged at positive.
In 2014, oekom research AG, which issues ratings for companies in the sustainable investment segment, again rated
Volkswagen at B on a twelve-point scale ranging from A + to D .
Volkswagen thus enjoys prime status as one of the leading com-

The table below shows how our money and capital market
programs were utilized as of December 31, 2014 and illustrates the
financial flexibility of the Volkswagen Group:

Authorized
volume

PROGRAM

Commercial paper
Bonds

billion

26.7

4.6

117.4

61.8

55.4

28.0

of which hybrid issues

Asset-backed securities

Amount utilized
on Dec. 31, 2014
billion

5.0

The syndicated credit line of 5.0 billion agreed in July 2011 was
extended in April 2014 by a further five years with two options for
extension in 2015 and 2016, by a year in each case. The credit line
remains unused.
Syndicated credit lines worth a total of 3.1 billion at other
Group companies have also not been drawn down. In addition,
Group companies arranged bilateral credit lines with national and
international banks in various other countries for a total of
12.5 billion, of which 2.2 billion has not been drawn down.
These extensive financing measures ensure the solvency of the
Volkswagen Group at all times.

O U R I N V E S T O R R E L AT I O N S T E A M I S AVA I L A B L E
F O R Q U E R I E S A N D C O M M E N T S AT A L L T I M E S :
W O L F S B U R G O F F I C E ( V O L K S WA G E N A G )
Phone
+ 49 (0) 5361 9-86622 IR hotline
Fax
+ 49 (0) 5361 9-30411
E-mail
[email protected]
Internet
www.volkswagenag.com/ir
LO N D ON OFFICE
Phone
+ 44 20 3705 2045
BEIJ ING OFFICE
Phone
+ 86 10 6531 3000

R AT I N G S

I N V E STO R R E L AT I O N S L I A I S O N O F F I C E
( VO L K SWAG E N G R O U P O F A M E R I C A , I N C . )
Phone
+ 1 703 364 7000

In 2014, rating agencies Standard & Poors and Moodys Investors

Service undertook their regular update of their credit ratings for
Volkswagen AG, Volkswagen Financial Services AG and Volkswagen
Bank GmbH. Standard & Poors raised its short-term and long-term
ratings for all three companies by one notch each to A1 and A.

97

G R O U P M A N A G E M E N T R E P O RT

Shares and Bonds

RESULTS OF THE RobecoSAM 2014 ASSESSMENT

in percent

Volkswagen AG
Industry average

Economic
dimension

91
61

Environmental
dimension

89
58

Social
dimension

83
54

Total

88
58

particularly highly in the areas of environmental management, risk

management and compliance.
The Carbon Disclosure Project (CDP) awarded 99 out of a
possible 100 points for disclosure and an A-rating for performance
in acknowledgement of the Volkswagen Groups environmental
activities. On the basis of these outstanding results, we were again
included in both the CDP Global 500 Climate Performance
Leadership Index and the CDP Global 500 Climate Disclosure
Leadership Index. MAN also received top marks from the CDP in
the industrials sector for its commitment in implementing its
climate strategy. Earning 97 out of 100 points and an A-rating, MAN
was likewise included in both leadership indices.
In addition to the indices shown in the table on page 95,
Volkswagen was represented in the following sustainability indices
as of December 31, 2014: CDP Supplier Climate Performance
Leadership Index, ECPI Ethical Index Europe, ECPI Ethical Index
EMU, ECPI Ethical Index Global, Ethibel Sustainability Index
Excellence Global, Ethibel Sustainability Index Excellence Europe,
Euronext-Vigeo Eurozone 120 Index, Global Compact 100 and
STOXX Global ESG Environmental Leaders Index, STOXX Global
ESG Social Leaders Index, STOXX Global ESG Governance Leaders
Index.

panies in the automotive industry. In the mechanical engineering

sector, the MAN brand was awarded a B rating and prime status
for its superior performance in the area of corporate social
responsibility. oekom research rates a companys social and
environmental performance in connection with the corporate
ratings performed on the basis of over 100 criteria selected for
specific industries.
V O L K SWA G E N I N S U STA I N A B I L I T Y R A N K I N G S A N D I N D I C E S

As analysts and investors view corporate social responsibility (CSR)

and sustainability performance as leading indicators of forwardlooking corporate leadership, they also increasingly base their
recommendations and decisions on companies CSR and sustainability profile. Sustainability ratings are particularly well suited to
evaluating a companys environmental, social and economic performance. If a company achieves the highest scores in these ratings,
this sends a clear signal to its stakeholders and also raises its
attractiveness as an employer and the motivation of its existing
employees.
In 2014, Volkswagen again ranked very highly in the most
important international rankings and corresponding indices,
obtaining a leading position in its sector. In RobecoSAM AGs
sustainability ranking, the Group was listed in the Dow Jones
Sustainability Index (DJSI) World and the DJSI Europe again in
2014. RobecoSAM AG examines performance in the field of
economic, environmental and social sustainability. Volkswagen was
named the best in its industry in the categories of brand
management, innovation management, climate strategy and compliance, among others. In the machinery and electrical equipment
sector, MAN was once more the only German company to be
represented in the DJSI World and DJSI Europe. MAN improved its
performance with regard to social factors in 2014, scoring

F U RT H E R I N F O R M AT I O N O N S U STA I N A B I L I T Y
www.volkswagenag.com/sustainability

98

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

Results of Operations, Financial

Position and Net Assets
The Volkswagen Group continued its successful course in fiscal year 2014, again generating
record sales revenue and operating profit in an ongoing difficult market environment. We successfully completed
a voluntary tender offer made to Scanias shareholders.

Engineering segments under the Commercial Vehicles/Power

Engineering Business Area. The Financial Services Division corresponds to the Financial Services segment.
Activities in the Passenger Cars segment cover the development
of vehicles and engines, the production and sale of passenger cars,
and the genuine parts business. This segment combines the
Volkswagen Groups individual passenger car brands on a consolidated basis. It also includes the Ducati brands motorcycle business.
The Commercial Vehicles segment primarily comprises the
development, production and sale of light commercial vehicles,
trucks and buses from the Volkswagen Commercial Vehicles,
Scania and MAN brands, the corresponding genuine parts business
and related services.
The Power Engineering segment combines the large-bore
diesel engines, turbomachinery, special gear units, propulsion
components and testing systems businesses.
The activities of the Financial Services segment comprise
dealer and customer financing, leasing, banking and insurance
activities, fleet management and mobility offerings.

The Volkswagen Groups segment reporting in compliance with

IFRS 8 comprises the four reportable segments Passenger Cars,
Commercial Vehicles, Power Engineering and Financial Services,
in line with the Groups internal reporting and management.
At Volkswagen, segment profit or loss is measured on the basis
of operating profit or loss.
The reconciliation column contains activities and other
operations that do not by definition constitute segments. These
include the unallocated Group financing activities. Consolidation
adjustments between the segments (including the holding company
functions) are also contained in the reconciliation. Purchase price
allocation for Porsche Holding Salzburg and Porsche, as well as for
Scania and MAN, is in line with their accounting treatment in the
segments.
The Automotive Division comprises the Passenger Cars,
Commercial Vehicles and Power Engineering segments, as well as
the figures from the reconciliation. The Passenger Cars segment
and the reconciliation are combined to form the Passenger Cars
Business Area. We report on the Commercial Vehicles and Power

KEY FIGU RES FOR 2014 BY SEGMENT

million

Sales revenue
Segment profit or loss
(operating profit or loss)
as a percentage of
sales revenue
Capex, including capitalized
development costs

Passenger Cars

Commercial
Vehicles

Power Engineering

Financial Services

Total
segments

Reconciliation

Volkswagen
Group

164,065

30,205

3,732

24,920

222,922

20,464

202,458

11,578

901

44

1,917

14,439

1,742

12,697

7.1

3.0

1.2

7.7

14,039

1,851

166

517

99

6.3
16,574

39

16,613

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

This increased the share capital by a notional 26.8 million and

generated gross proceeds totaling 2.0 billion.

SUCC ES S FU L COMP L ETI ON OF TH E S CA N IA TE N D E R OF FE R

On March 14, 2014, Volkswagen AG made a voluntary tender offer

to Scanias shareholders for all shares not previously held by
Volkswagen either directly or indirectly. 36.93% of all Scania
shares were acquired on the successful completion of the offer by
the end of June. Volkswagen held 99.57% of Scanias share capital
as of the end of the reporting period; this corresponded to 99.66%
of the voting rights. Volkswagen has initiated a squeeze-out for the
remaining Scania shares. Volkswagen has controlled 100% of the
share capital since January 14, 2015. The transaction reduced
equity by 6.7 billion. 6.5 billion was paid for the shares acquired
in 2014; a liability was recognized in the balance sheet outside
profit or loss for the shares to be acquired in the squeeze-out.
To partially fund the transaction, the Company resolved and
implemented a capital increase in June 2014, under which new
preferred shares were issued from authorized capital against cash
contributions, while disapplying shareholders preemptive rights.

R E S U LT S O F O P E R AT I O N S

Results of operations of the Group

The Volkswagen Group generated sales revenue of 202.5 billion in

fiscal year 2014, 2.8% higher than in the previous year. The clearly
negative exchange rate effects seen in the first half of the year in
particular were offset by higher volumes and improvements in the
mix. At 80.6% (80.9%), a large majority of sales revenue was
recorded outside of Germany.
Gross profit improved to 36.5 billion (35.6 billion). Optimized product costs had a positive impact on earnings, while
increased depreciation charges resulting from our significant
capital expenditures and higher upfront investments in new
products had a negative effect. The prior-year figure was impacted
by contingency reserves. The gross margin was 18.0% (18.1%).

I N C O M E STAT E M E N T B Y D I V I S I O N

VOLKSWAGEN GROUP

million

Sales revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Net other operating income
Operating profit
Operating return on sales (%)
Share of profits and losses of equity-accounted
investments
Other financial result
Financial result

2014

AUTOMOTIVE*
2013

2014

FINANCIAL SERVICES
2013

2014

2013

202,458

197,007

177,538

175,003

24,920

22,004

165,934

161,407

146,311

144,481

19,623

16,926

36,524

35,600

31,226

30,522

5,297

5,078

20,292

19,655

19,199

18,604

1,093

1,050

6,841

6,888

5,427

5,682

1,414

1,206

3,306

2,613

4,180

3,571

874

958

12,697

11,671

10,780

9,807

1,917

1,863

6.3

5.9

6.1

5.6

7.7

8.5
76

3,988

3,588

3,956

3,513

31

1,891

2,831

1,907

2,858

17

27

2,097

757

2,049

655

48

102
1,966

Profit before tax

14,794

12,428

12,829

10,462

1,965

Income tax expense

3,726

3,283

3,097

2,873

629

410

Profit after tax

11,068

9,145

9,732

7,590

1,336

1,555

84

52

43

41

61

138

27

138

27

10,847

9,066

9,551

7,572

1,295

1,494

Noncontrolling interests
Profit attributable to Volkswagen AG hybrid
capital investors
Profit attributable to Volkswagen AG
shareholders

* Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.

100

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

SEGMENT REPORTING SHARE OF SALES REVENUE BY MARKET 2014

in percent

Europe (excluding Germany)

and other regions

41.2

Germany

19.4

North America

13.6

South America

6.8

Asia-Pacific

18.8
0

10

20

30

40

50

60

70

80

90

100

Gross profit in the Automotive Division exceeded the 2013 figure, at

31.2 billion (30.5 billion). Higher depreciation charges as a
result of our significant capital expenditures, increased research
and development costs, in particular for new drive concepts, and
higher fixed costs due to growth factors were offset by improved
product costs. The prior year had been impacted by contingency
reserves in the areas of passenger cars and power engineering.
Distribution expenses rose by 3.2% as against the previous year
and the ratio of distribution expenses to sales revenue also
increased slightly. Administrative expenses and the ratio of administrative expenses to sales revenue decreased. Currency-related
factors saw other operating income improve to 4.2 billion (3.6
billion).
The Automotive Divisions operating profit rose by 9.9% to
10.8 billion in the reporting period. The division recorded an
operating return on sales of 6.1% (5.6%). The positive business
growth of our Chinese joint ventures is mainly reflected in the
Groups operating profit only by deliveries of vehicles and vehicle
parts, as well as license revenue. The profit recorded by the joint
venture companies is accounted for in the financial result using the
equity method.
The financial result rose by 1.4 billion to 2.0 billion. The
increase was due primarily to lower expenses from the measurement of derivative financial instruments at the reporting date, as
well as income from the Chinese joint ventures, which was up on
the high prior-year figures. In addition, the previous year was
impacted by expenses in connection with the control and profit and
loss transfer agreement with MAN SE.

Although distribution expenses rose as a result of the increase in

business, the ratio of distribution expenses to sales revenue
remained unchanged. Administrative expenses declined slightly
year-on-year, both as an absolute figure and as a proportion of sales
revenue. Other operating income rose by 0.7 billion year-on-year
to 3.3 billion, mainly due to currency-related factors.
At 12.7 billion, the Volkswagen Group generated its highest
ever operating profit in fiscal year 2014, beating the previous
record set in the prior-year period by 1.0 billion. Positive volume
and mix effects, as well as optimized product costs, were able to
offset negative exchange rate effects, increased depreciation
charges, higher research and development costs, and greater fixed
costs due to growth factors. The prior-year figure had been
negatively impacted by contingency reserves. The operating return
on sales improved to 6.3% (5.9%).
The Volkswagen Groups profit before tax rose to 14.8 billion
in the reporting period, up 19.0% on the prior-year figure. The
return on sales before tax increased from 6.3% to 7.3%. Profit after
tax was 1.9 billion higher than in 2013, at 11.1 billion. The tax
rate was 25.2% (26.4%).
Results of operations in the Automotive Division

The Automotive Divisions sales revenue rose year-on-year to

177.5 billion (175.0 billion). The clearly negative exchange rate
effects seen in the first half of the year in particular were more than
offset by positive volume and mix effects. As our Chinese joint
ventures are accounted for using the equity method, the Groups
positive business growth in the Chinese passenger car market is
mainly reflected in its sales revenue only by deliveries of vehicles
and vehicle parts.

101

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

Results of operations in the Financial Services Division

R E S U LT S O F O P E R AT I O N S I N T H E PA S S E N G E R C A R S B U S I N E S S A R E A

million

Sales revenue
Gross profit
Operating profit
Operating return on sales (%)

2014

2013

143,601

140,077

26,153

25,872

9,835

9,013

6.8

6.4

The Financial Services Division generated sales revenue of 24.9

billion in fiscal year 2014. The 13.3% year-on-year increase was
mainly attributable to higher business volumes.
Gross profit improved by 4.3% year-on-year to 5.3 billion.
The higher volumes and compliance with regulatory
requirements pushed up distribution and administrative expenses
in the reporting period. While the ratio of administrative expenses
to sales revenue increased, the ratio of distribution expenses to
sales revenue declined. Other operating income amounted to
0.9 billion ( 1.0 billion).
Operating profit at the Financial Services Division rose by 2.9%
year-on-year to 1.9 billion, with the division again making a
significant contribution to the Groups success. Aside from compliance with regulatory requirements, the main challenge in the
reporting period was the ongoing pressure on margins. The
operating return on sales declined to 7.7% (8.5%). The return on
equity before tax was 12.5%, as against 14.3% in the previous year.

Sales revenue in the Passenger Cars Business Area increased yearon-year to 143.6 billion (140.1 billion) in 2014. Gross profit
improved to 26.2 billion (25.9 billion). The Passenger Cars
Business Area generated an operating profit of 9.8 billion, up on
the prior-year figure (9.0 billion). The operating return on sales
was 6.8% (6.4%). The initially unfavorable exchange rate trends,
higher depreciation charges as a result of our significant capital
expenditures, increased research and development costs in
particular for new drive concepts and higher fixed costs due to
growth factors had a negative impact. However, these effects were
offset by increased volumes, improvements in the mix and lower
product costs.

PR I NC I PL ES A N D GOA LS OF F I NA N C IA L M A NAG E ME NT

Financial management at the Volkswagen Group covers liquidity

management, currency, interest rate and commodity risk management, as well as credit and country risk management. It is performed centrally for all Group companies by Group Treasury, based
on internal directives and risk parameters. Initial talks on the
integration of the Scania subgroup into central financial management were held following the delisting of Scania ABs shares.
The integration process for the MAN subgroup has not yet been
completed.
With regard to liquidity, the goals of financial management are
to ensure that the Volkswagen Group remains solvent at all times
and at the same time to generate an adequate return from the
investment of surplus funds. The Groups material companies in
Europe also use cash pooling to optimize the use of existing liquidity.
This enables Group companies to pool the balances accumulating
on cash pooling accounts on a daily basis by closing out these
accounts and transferring both the positive and negative balances
to a target account at Group Treasury. Currency, interest rate and
commodity risk management is designed to hedge the prices on
which investment, production and sales plans are based using
derivative financial instruments. Credit and country risk management aims to use diversification to avoid exposing the Volkswagen
Group to the risk of loss or default. To achieve this, internal limits
are defined for the volume of business per counterparty when
entering into financial transactions. Various rating criteria are
taken into account when setting these limits, including the ratings
awarded by independent agencies and the capital resources of
potential counterparties. The relevant risk limits and the autho-

R E S U LT S O F O P E R AT I O N S I N T H E C O M M E R C I A L V E H I C L E S /
POWER ENGI NEERI NG BUSI NESS AREA

million

Sales revenue
Gross profit
Operating profit
Operating return on sales (%)

2014

2013

33,937

34,927

5,074

4,650

945

794

2.8

2.3

The Commercial Vehicles/Power Engineering Business Area

recorded sales revenue of 33.9 billion (34.9 billion) in fiscal year
2014, of which 3.7 billion (3.9 billion) was attributable to the
Power Engineering segment. Gross profit increased to 5.1 billion
(4.7 billion). Operating profit improved to 0.9 billion (0.8 billion), while the operating return on sales amounted to 2.8% (2.3%).
The difficult conditions in South America and Russia, as well as
increased competitive pressure on prices and margins, had a negative impact. At 44 million, operating profit in the Power Engineering segment exceeded the prior-year figure ( 250 million),
which had been impacted by project-specific contingency reserves.

102

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

billion) due to volume-related factors. Cash flows from operating

activities increased by 1.0 billion to 21.6 billion.
At 15.5 billion, investing activities attributable to operating
activities were down overall on the prior-year figure (16.2 billion).
Capex rose to 11.5 billion (11.0 billion), producing a capex ratio of
6.5% (6.3%). We invested mainly in our production facilities and in
models that we launched in 2014 or are planning to launch in 2015.
These are primarily vehicles in the Golf, Passat, Touran, Audi A3,
Audi A4, Audi TT, Audi Q7, KODA Fabia and KODA Superb series,
as well as the Porsche Macan and the Porsche Panamera. Other
investment priorities were the ecological focus of our model range,
the growing use of electric drives and our modular toolkits. Capitalized development costs were up on the 2013 figure, at 4.6 billion
(4.0 billion). Investment activities in the reporting period included
MAN SEs sale of MAN Finance International GmbH to Volkswagen
Financial Services AG. In the previous year, they included the
intragroup acquisition of the interest in LeasePlan Corporation N.V.
The Automotive Divisions net cash flow improved by 1.7 billion to 6.1 billion.
A capital increase carried out by Volkswagen AG at Volkswagen
Financial Services AG at the beginning of the year in order to
finance the growth in business volumes and meet regulatory capital
requirements resulted in outflows from financing activities of
2.3 billion. The purchase price for the Scania shares acquired
reported as a capital transaction with noncontrolling interests
was recognized in the amount of 6.5 billion. The successful
placement of dual-tranche hybrid notes with an aggregate principal
amount of 3.0 billion via Volkswagen International Finance N.V. in
March resulted in a cash inflow. They consist of a 1.25 billion note
that carries a coupon of 3.750% and has a first call date after seven
years, and a 1.75 billion note that carries a coupon of 4.625% and
has a first call date after twelve years. Both tranches are perpetual
and increase equity by the full amount, net of transaction costs
among other factors. 3.0 billion of the hybrid notes was classified
as a capital contribution, which increased net liquidity. The capital
increase implemented in June by issuing new preferred shares in
the amount of 2.0 billion also had a positive impact.
The dividend paid out to the shareholders of Volkswagen AG
rose by 0.2 billion to 1.9 billion.

rized financial instruments, hedging methods and hedging

horizons are approved by the Executive Committee for Liquidity
and Foreign Currency.
For additional information on the principles and goals of
financial management, please refer to page 171 and to the notes to
the 2014 consolidated financial statements on pages 259 to 267.
FI NANCIAL POSITION

Financial position in the Group

The Volkswagen Group generated gross cash flow of 26.5 billion in

fiscal year 2014, up 8.8% on the prior-year figure. Funds tied up in
working capital increased by 4.0 billion to 15.8 billion due to
volume-related factors and a stronger performance by the financial
services business. As a result, cash flows from operating activities
amounted to 10.8 billion (12.6 billion).
At 16.5 billion, the Volkswagen Groups investing activities
attributable to operating activities in the reporting period were up
10.2% on the previous year. Investments in property, plant and
equipment, investment property and intangible assets, excluding
capitalized development costs (capex) increased to 12.0 billion
(11.4 billion), while capitalized development costs rose to 4.6
billion (4.0 billion). Net cash flow amounted to 5.7 billion
(2.3 billion).
Cash inflows from financing activities amounted to 4.6 billion
(9.0 billion). Net liquidity was increased by the hybrid notes
successfully placed in March 2014 (3.0 billion) and the capital
increase implemented in June 2014 by issuing new preferred
shares in the amount of 2.0 billion. Conversely, dividend payments and the increase in the interest in Scania resulted in cash
outflows.
The Groups net liquidity amounted to 96.5 billion on December 31, 2014, compared with 82.3 billion as of year-end 2013.
Financial position in the Automotive Division

The Automotive Divisions gross cash flow amounted to 20.2 billion

(18.7 billion) in fiscal year 2014. The year-on-year increase was
primarily due to earnings-related factors. 1.4 billion was released
from working capital, slightly less than in the previous year (1.9

103

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

C A S H F L O W STAT E M E N T B Y D I V I S I O N

AUTOMOTIVE1

VOLKSWAGEN GROUP

million

FINANCIAL SERVICES

2014

2013

2014

2013

2014

2013

Cash and cash equivalents at beginning of

period

22,009

17,794

19,285

14,788

2,724

3,005

Profit before tax

14,794

12,428

12,829

10,462

1,965

1,966

Income taxes paid

4,040

3,107

3,489

2,622

552

486

Depreciation and amortization expense2

16,964

14,686

12,320

10,786

4,644

3,900

148

179

137

168

12

11

Change in pension provisions

Other noncash income/expense and
reclassifications3

1,317

218

1,631

107

313

325

Gross cash flow

26,549

24,404

20,166

18,688

6,383

5,716

Change in working capital

15,764

11,809

1,427

1,925

17,191

13,733

Change in inventories

2,214

1,021

2,111

729

103

292

Change in receivables

1,433

1,651

983

1,163

2,416

489

4,764

2,363

3,228

2,118

1,536

245

413

2,300

514

2,241

101

59

Change in lease assets (excluding

depreciation)

8,487

7,112

749

465

7,738

6,647

Change in financial services receivables

8,807

6,688

438

77

8,370

6,611

10,784

12,595

21,5934

20,6124

10,809

8,017

Cash flows from investing activities

attributable to operating activities

16,452

14,936

15,476

16,199

976

1,263

of which: investment in property, plant and

equipment, investment property
and intangible assets, excluding
capitalized development costs

12,012

11,385

11,495

11,040

517

345

4,601

4,021

4,601

4,021

Change in liabilities
Change in other provisions

Cash flows from operating activities

capitalized development costs

acquisition and disposal of equity
investments

Net cash flow 5

Change in investments in securities and loans

242

151

242

1,702

485

1,551

5,668

2,341

6,117

4,413

11,784

6,754
656

2,647

1,954

1,694

1,298

953

Cash flows from investing activities

19,099

16,890

17,170

17,497

1,928

607

Cash flows from financing activities

4,645

8,973

7,945

1,734

12,590

7,239

6,535

6,535

4,932

3,067

2,605

3,015

2,326

52

of which: capital transactions with

noncontrolling interests
Capital contributions/capital
redemptions
Effect of exchange rate changes on cash and
cash equivalents

294

462

248

353

46

110

Net change in cash and cash equivalents

3,375

4,216

3,275

4,497

100

281

Cash and cash equivalents at Dec. 316

18,634

22,009

16,010

19,285

2,624

2,724

Securities, loans and time deposits

18,893

17,177

11,424

9,515

7,468

7,661

Gross liquidity

37,527

39,186

27,435

28,800

10,092

10,386

133,980

121,504

9,795

11,932

124,184

109,572

96,453

82,318

17,639

16,869

114,092

99,186

Total third-party borrowings

Net liquidity

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
2 Net of impairment reversals.
3 These relate mainly to the fair value measurement of financial instruments, application of the equity method and reclassification of gains/losses on disposal of noncurrent assets to
investing activities.
4 Before consolidation of intragroup transactions: 22,217 million (21,270 million).
5 Net cash flow: cash flows from operating activities, net of cash flows from investing activities attributable to operating activities.
6 Cash and cash equivalents comprise cash at banks, checks, cash-in-hand and call deposits.

104

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

figure. Funds of 1.3 billion were tied up in working capital due to

the difficult market conditions in South America and Eastern
Europe. By contrast, funds of 0.1 billion had been released from
working capital in the previous year. Cash flows from operating
activities declined to 0.9 billion (2.4 billion). Investing activities
attributable to operating activities increased year-on-year to 1.5
billion (1.4 billion). The increase was due in particular to capital
expenditures on the successor model to the Volkswagen Crafter. Net
cash flow amounted to 0.6 billion, down 1.6 billion on the prioryear figure.

Overall, the Automotive Division recorded a cash inflow from

financing activities of 7.9 billion (+1.7 billion), which also
includes a year-on-year decrease in proceeds from the issuance of
bonds.
Net liquidity in the Automotive Division as of December 31, 2014
was 0.8 billion higher than in the previous year, at 17.6 billion.

F I N A N C I A L P O S I T I O N I N T H E PA S S E N G E R C A R S B U S I N E S S A R E A

million

Gross cash flow

Change in working capital

2014

2013

17,965

16,376

2,682

1,841

Cash flows from operating activities

20,647

18,218

Cash flows from investing activities

attributable to operating activities

13,942

14,838

6,705

3,380

Net cash flow

Financial position in the Financial Services Division

The Financial Services Divisions gross cash flow rose by 11.7%

year-on-year to 6.4 billion due to improved earnings quality. Funds
tied up in working capital increased to 17.2 billion (13.7 billion)
due to growth in business volumes. Mainly because of increased
capex and the intragroup acquisition of MAN Finance International
GmbH from MAN SE, investing activities attributable to operating
activities recorded a cash outflow of 1.0 billion. In the previous
year, the sale of the interest in LeasePlan to Volkswagen AG had led
to a cash inflow. Volkswagen AG contributed a 2.3 billion cash
inflow into the financing activities of the Financial Services Division
to finance the increased business volumes and to strengthen equity.
The cash inflow in the financing activities amounted to 12.6 billion (7.2 billion) overall, including from the issuance of bonds.
The Financial Services Divisions negative net liquidity, which is
common in the industry, amounted to 114.1 billion ( 99.2
billion) at the end of the reporting period.

Gross cash flow in the Passenger Cars Business Area amounted to

18.0 billion in fiscal year 2014, 9.7% higher than in the previous
year due to earnings-related factors. Funds released from working
capital rose to 2.7 billion (1.8 billion). Cash flows from operating
activities increased by 13.3% to 20.6 billion. At 13.9 billion, the
cash outflow from investing activities attributable to operating
activities was down on the previous year (14.8 billion), which was
affected by the intragroup acquisition of the interest in LeasePlan.
Capex and capitalized development costs rose to 10.1 billion
(10.0 billion) and 4.0 billion (3.6 billion), respectively. Net cash
flow increased by 3.3 billion to 6.7 billion.

NET ASSETS

Consolidated balance sheet structure

At 351.2 billion, the Volkswagen Groups total assets as of the fiscal

2014 year-end exceeded the prior-year figure by 8.3%. The structure of the consolidated balance sheet as of the reporting date can
be seen from the chart on page 107. The Volkswagen Groups equity
amounted to 90.2 billion, up slightly on the 90.0 billion recorded
as at December 31, 2013. The equity ratio decreased to 25.7%
(27.8%).
Noncontrolling interests declined to 0.2 billion (2.3 billion)
following the increase in the interest in Scania; these are now
largely attributable to external shareholders of RENK AG and
AUDI AG.
As of December 31, 2014, the Group had off-balance-sheet
liabilities in the form of contingent liabilities in the amount of
4.5 billion (4.2 billion) and other financial obligations in the
amount of 27.3 billion (24.4 billion). The latter primarily result
from purchase commitments for property, plant and equipment, as
well as obligations under long-term leasing and rental contracts
and irrevocable credit commitments to customers.

FI NA NC IA L PO S ITIO N I N TH E COM ME RC IA L V EH IC L ES/

POWER ENGI NEERI NG BUSI NESS AREA

million

Gross cash flow

Change in working capital

2014

2013

2,201

2,311

1,255

83

Cash flows from operating activities

946

2,395

Cash flows from investing activities

attributable to operating activities

1,534

1,361

588

1,033

Net cash flow

Gross cash flow in the Commercial Vehicles/Power Engineering

Business Area was 2.2 billion, down slightly on the prior-year

105

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

C O N S O L I D AT E D B A L A N C E S H E E T B Y D I V I S I O N A S O F D E C E M B E R 3 1

AUTOMOTIVE1

VOLKSWAGEN GROUP

million

FINANCIAL SERVICES

2014

2013

2014

2013

2014

2013

Noncurrent assets

220,106

202,141

128,231

122,438

91,875

79,704

Intangible assets

59,935

59,243

59,697

59,007

237

236

Property, plant and equipment

46,169

42,389

44,080

40,632

2,089

1,757

Lease assets

27,585

22,259

2,815

2,642

24,770

19,617

Financial services receivables

57,877

51,198

602

57,877

51,800

Assets

Investments, equity-accounted
investments and other equity investments, other
receivables and financial assets

28,541

27,053

21,639

20,759

6,902

6,294

131,102

122,192

69,180

68,320

61,923

53,872

Inventories

31,466

28,653

28,269

25,580

3,197

3,073

Financial services receivables

44,398

38,386

464

844

44,862

39,229

Other receivables and financial assets

25,254

23,483

15,677

16,458

9,577

7,025

Marketable securities

10,861

8,492

9,197

6,675

1,664

1,817

Cash, cash equivalents and time deposits

19,123

23,178

16,499

20,450

2,624

2,728

351,209

324,333

197,411

190,758

153,798

133,576

90,189

90,037

72,815

75,984

17,374

14,053

84,950

85,730

67,828

72,100

17,122

13,630

5,041

2,004

5,041

2,004

89,991

87,733

72,870

74,103

17,122

13,630

198

2,304

55

1,881

253

423

130,314

115,672

66,438

65,290

63,876

50,382

Financial liabilities

68,416

61,517

10,643

15,913

57,773

45,604

Provisions for pensions

29,806

21,774

29,361

21,481

445

293

Other liabilities

32,092

32,380

26,434

27,896

5,658

4,484

130,706

118,625

58,158

49,484

72,547

69,141

Current assets

Total assets
Equity and Liabilities
Equity
Equity attributable to Volkswagen AG
shareholders
Equity attributable to Volkswagen AG hybrid
capital investors
Equity attributable to Volkswagen AG
shareholders and hybrid capital investors
Noncontrolling interests2
Noncurrent liabilities

Current liabilities
Put options and compensation rights granted to
noncontrolling interest shareholders

3,703

3,638

3,703

3,638

Financial liabilities

65,564

59,987

847

3,981

66,411

63,968

Trade payables

19,530

18,024

17,838

16,582

1,692

1,441

Other liabilities

41,909

36,976

37,465

33,245

4,444

3,731

351,209

324,333

197,411

190,758

153,798

133,576

Total equity and liabilities

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions, primarily intragroup loans.
2 On completion of the offer for the acquisition of all outstanding Scania shares, noncontrolling interests in Scanias equity were derecognized from Group equity as a capital transaction
involving a change in ownership interest; a liability was recognized under the Put options and compensation rights granted to noncontrolling interest shareholders item in current
liabilities for the remaining shares that are subject to the squeeze-out.

106

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

CONSOLIDATED BALANCE SHEET STRUCTURE 2014

in percent

Noncurrent assets
62.7 (62.3)

Current assets
37.3 (37.7)

Total assets
Noncurrent liabilities
37.1 (35.7)

Equity
25.7 (27.8)

Total equity
and liabilities

10

20

30

40

50

Current liabilites
37.2 (36.6)

60

70

80

90

100

higher actuarial losses from the measurement of pension provisions, negative effects from the fair value measurement of
derivative financial instruments and the dividends paid out to
Volkswagen AG shareholders had an offsetting effect. The equity
increase implemented in the Financial Services Division also
decreased equity in the Automotive Division, where the deduction
was recognized. The divisions equity ratio decreased to 36.9%
(39.8%).
Noncurrent liabilities were up on the year-end 2013 figure, at
66.4 billion (65.3 billion). Within this item, pension provisions
increased by 7.9 billion to 29.4 billion as a result of the actuarial
remeasurement due to the change in the discount rate. Current
liabilities increased by a total of 17.5% year-on-year. Reclassifications from noncurrent to current liabilities, in particular due to
shorter remaining maturities, led to an increase in current financial liabilities. The figures for the Automotive Division also contain
the elimination of intragroup transactions between the Automotive
and Financial Services divisions. As the current financial liabilities
for the primary Automotive Division were lower than the loans
granted to the Financial Services division, a negative amount was
disclosed for the reporting period. The Put options and compensation rights granted to noncontrolling interest shareholders
item primarily comprises the liabilities for the obligation to acquire
the shares held by the remaining free float shareholders of MAN
and the Scania shares to be acquired in the squeeze-out.
The Automotive Divisions total assets amounted to 197.4 billion at the end of the reporting period, up 3.5% on the prior-year
figure.

Automotive Division balance sheet structure

The Automotive Divisions intangible assets and in particular its

property, plant and equipment, which reflects the high investment
volumes, were up on the year-end 2013 figure as of December 31,
2014. Noncurrent assets rose by a total of 4.7%. Mainly as a result
of the positive business performance of the Chinese joint ventures
the equity-accounted investments contained in the other
noncurrent assets item increased rose from 7.6 billion to 9.4 billion. Overall, current assets increased by 1.3% year-on-year; within
this item, inventories rose by 10.5% as a result of the increase in
business. Cash and cash equivalents declined by 4.0 billion to
16.5 billion.
All of the outstanding Scania shares with the exception of
0.43% of the share capital were acquired following the fulfillment
of all of the conditions for Volkswagen AGs voluntary tender offer to
acquire all Scania shares in May. The transaction reduced equity by
6.7 billion. 6.5 billion was paid for the Scania A and B shares
already acquired; a liability was recognized for the shares to be
acquired in the squeeze-out. This did not affect liquidity. The
noncontrolling interests are mainly attributable to RENK AG and
AUDI AG. Since the deduction was recognized in the Automotive
Division, the figure was negative overall.
The Automotive Divisions equity amounted to 72.8 billion at
the end of 2014, 4.2% lower than on the prior-year reporting date.
It was boosted by healthy earnings growth, the hybrid notes issued
in March and the capital increase implemented in June by issuing
new preferred shares using authorized capital. The equity
reduction due to the acquisition of all outstanding Scania shares,

107

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

In the Commercial Vehicles/Power Engineering Business Area,

both noncurrent and current assets were down year-on-year at the
end of the reporting period. Total assets declined to 43.1 billion
(45.7 billion).
At 14.1 billion, equity was down 8.9% year-on-year at the end
of fiscal 2014. Noncurrent liabilities were 2.6% lower than in the
previous year. Current liabilities declined by 5.3%.

PA S S E N G E R C A R S B U S I N E S S A R E A B A L A N C E S H E E T ST R U C T U R E

million

Noncurrent assets
Current assets

2014

2013

101,459

94,873

52,869

50,146

154,328

145,019

Equity

58,708

60,494

Financial Services Division balance sheet structure

Noncurrent liabilities

54,366

52,900

Current liabilities

41,254

31,625

The Financial Services Divisions total assets amounted to 153.8

billion on December 31, 2014, 20.2 billion higher than the 2013
figure.
Noncurrent assets rose by 15.3% overall as against year-end
2013. Within this item, lease assets and noncurrent financial
services receivables rose as a result of business growth. The higher
volumes also led to a 14.9% increase in current assets. Current
financial services receivables increased by 5.6 billion to 44.9 billion. The Financial Services Division accounted for approximately
43.8% of the Volkswagen Groups assets at the reporting date.
The Financial Services Divisions equity amounted to 17.4
billion at the end of the reporting period, 23.6% higher than in the
previous year. This was due to earnings-related factors and to the
capital increase carried out by Volkswagen AG at the beginning of
the year in order to finance business growth and meet regulatory
capital requirements. The equity ratio was 11.3% (10.5%). Noncurrent liabilities increased by 26.8% overall as against December
31, 2013 due to higher noncurrent financial liabilities entered into
to fund business growth. Current liabilities rose by 4.9% as against
the prioryear reporting date, which was also related to funding.
Deposits from the direct banking business increased to 25.3 billion (23.3 billion). The debt to equity ratio amounted to 7:1.

Total assets

Noncurrent assets in the Passenger Cars Business Area rose by 6.9%

year-on-year to 101.5 billion as of December 31, 2014. Within this
item, property, plant and equipment increased in particular as a
result of the comprehensive investment program. Equity-accounted
investments rose thanks to the healthy earnings growth recorded by
the Chinese joint ventures. Current assets rose by 5.4% to 52.9
billion, mainly due to the increase in inventories. Total assets
amounted to 154.3 billion (145.0 billion) as of year-end 2014.
Equity was down 3.0% on the previous year, at 58.7 billion.
This includes negative effects from the decreased interest rate for
pension provisions and the completion of the Scania tender offer.
Noncurrent liabilities increased by 2.8%, while current liabilities
rose by 9.6 billion. This was primarily due to reclassifications
resulting from shorter maturities.

COMM E RC IA L V E H IC LE S/ POW E R E NG I N E ER I N G B U S I N E SS A R EA
B A L A N C E S H E E T ST R U C T U R E

million

2014

2013

Noncurrent assets

26,772

27,565

Current assets

16,311

18,174

Total assets

43,083

45,739

Equity

14,107

15,490

Noncurrent liabilities

12,072

12,390

Current liabilities

16,904

17,859

108

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

F I N A N C I A L K E Y P E R F O R M A N C E I N D I C ATO R S

2014

2013

2012

2011

2010

Gross margin

18.0

18.1

18.2

17.6

16.9

Personnel expense ratio

16.7

16.1

15.3

15.0

15.0

Return on sales before tax

7.3

6.3

13.2

11.9

7.1

Return on sales after tax

5.5

4.6

11.4

9.9

5.7

25.7

27.8

26.5

25.0

24.4

0.1

0.1

0.1

0.1

0.1

Change in unit sales year-on-year3

+ 5.0

+ 4.1

+ 11.8

+ 14.9

+ 15.4

Change in sales revenue year-on-year

+ 1.4

+ 1.3

+ 21.6

+ 26.0

+ 21.2

6.1

5.6

5.7

7.0

5.5

23,100

20,594

19,895

17,815

13,940

Return on investment (ROI)5

14.9

14.5

16.6

17.7

13.5

Cash flows from operating activities as a percentage of sales

revenue

12.2

11.8

9.4

12.0

12.3

Cash flows from investing activities as a percentage of sales

revenue

8.7

9.3

9.5

11.3

8.1

Capex as a percentage of sales revenue

6.5

6.3

5.9

5.6

5.0

Ratio of noncurrent assets to total assets6

22.3

21.3

21.0

21.5

22.8

Ratio of current assets to total assets7

14.3

13.4

14.3

17.4

14.7

6.2

6.5

6.4

6.9

7.4

36.9

39.8

37.9

35.9

35.5

Volkswagen Group

Equity ratio
Dynamic gearing (years) 1
Automotive Division2

Operating profit as a percentage of sales revenue

EBITDA (in million)4

Inventory turnover
Equity ratio
Financial Services Division
Increase in total assets

15.1

3.9

19.5

22.5

9.2

Return on equity before tax8

12.5

14.3

13.1

14.0

12.9

Equity ratio

11.3

10.5

10.4

10.1

10.4

1
2
3
4
5
6
7
8

Ratio of cash flows from operating activities to current and noncurrent financial liabilities.
Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
Including the Chinese joint ventures. These companies are accounted for using the equity method.
Operating profit plus net depreciation/amortization and impairment losses/reversals of impairment losses on property, plant and equipment, capitalized development costs, lease
assets, goodwill and financial assets as reported in the cash flow statement.
For details, see Value-based management on page 113.
Ratio of property, plant and equipment to total assets.
Ratio of inventories to total assets.
Profit before tax as a percentage of average equity.

109

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

year 2014 with the successful placement of dual-tranche hybrid

notes. The Automotive Divisions liquidity position remains strong
and gives us financial stability and flexibility.
An overview of the development of the Volkswagen Group over
the past five years can be found in the tables on pages 109 and 111.
More information on the economic position of the Volkswagen
Group by brand and business field can be found in the divisions
chapter starting on page 21.

S U M M A RY O F E C O N O M I C P O S I T I O N

The Board of Management of Volkswagen AG believes that the

Groups economic position is positive. The Group continued its
profitable growth path in fiscal year 2014, again generating record
sales revenue and operating profit in an ongoing difficult market
environment. We maintained our sustainable cost and investment
management policies and the continuous optimization of our
processes.
We increased our interest in Scanias share capital to 99.57%
in the reporting period on completion of the voluntary tender offer
to acquire all Scania shares not previously held either directly or
indirectly. Volkswagen has controlled 100% of the share capital
since January 14, 2015. This creates the basis for further synergies
to be leveraged in the commercial vehicles area.
The transaction was partially funded by a capital increase,
under which new preferred shares were issued from authorized
capital against cash contributions, while disapplying shareholders
preemptive rights. We also strengthened our capital base in fiscal

VA L U E A D D E D STAT E M E N T

The value added statement indicates the added value generated by a

company in the past fiscal year as its contribution to the gross
domestic product of its home country, and how it is appropriated.
The value added generated by the Volkswagen Group in the year
under review was 8.1% higher than in the previous year. Added
value per employee in 2014 was 103.9 thousand (+5.5%).
Employees in the passive phase of their partial retirement are not
included in the calculation.

VA L U E A D D E D G E N E R AT E D B Y T H E V O L K SWA G E N G R O U P

Source of funds in million

2014

2013

Sales revenue

202,458

197,007

Other income

14,192

13,994

132,514

127,089

Depreciation and amortization

16,964

14,686

Other upfront expenditures

15,063

21,027

52,109

48,198

Cost of materials

Value added

Appropriation of funds in million

2014

to shareholders (dividend, 2014 dividend proposal)

2013

2,294

4.4%

1,871

3.9%

33,834

64.9%

31,747

65.9%

to the state (taxes, duties)

3,817

7.3%

3,865

8.0%

to creditors (interest expense)

3,389

6.5%

3,442

7.1%

to the Company (reserves)

8,774

16.8%

7,274

15.1%

52,109

100.0%

48,198

100.0%

to employees (wages, salaries, benefits)

Value added

110

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

F I V E -Y E A R R E V I E W

2014

2013

2012

2011

2010

Volume Data (thousands)

Vehicle sales (units)

10,217

9,728

9,345

8,361

7,278

Germany

1,247

1,187

1,207

1,211

1,059

Abroad

8,970

8,541

8,137

7,150

6,219

10,213

9,728

9,255

8,494

7,358

Germany

2,559

2,458

2,321

2,640

2,115

Abroad

7,653

7,270

6,934

5,854

5,243

583

563

533

454

389

Germany

265

255

237

196

178

Abroad

318

308

296

258

210

Sales revenue

202,458

197,007

192,676

159,337

126,875

Cost of sales

165,934

161,407

157,522

131,371

105,431

Gross profit

36,524

35,600

35,154

27,965

21,444

Distribution expenses

20,292

19,655

18,850

14,582

12,213

Administrative expenses

6,841

6,888

6,220

4,384

3,287

Net other operating income

3,306

2,613

1,415

2,271

1,197

12,697

11,671

11,498

11,271

7,141

Production (units)

Employees (yearly average)

Financial Data (in million)

Income Statement

Operating profit
Financial result

2,097

757

13,989

7,655

1,852

Profit before tax

14,794

12,428

25,487

18,926

8,994

Income tax expense

3,726

3,283

3,606

3,126

1,767

11,068

9,145

21,881

15,799

7,226

132,514

127,089

122,450

104,648

79,394

33,834

31,747

29,504

23,854

19,027

Noncurrent assets

220,106

202,141

196,457

148,129

113,457

Current assets

131,102

122,192

113,061

105,640

85,936

Total assets

351,209

324,333

309,518

253,769

199,393

90,189

90,037

81,995

63,354

48,712

198

2,304

4,313

5,815

2,734

130,314

115,672

121,996

89,179

73,781

Profit after tax

Cost of materials
Personnel expenses
Balance Sheet (at December 31)

Equity
of which: noncontrolling interests
Noncurrent liabilities
Current liabilities

130,706

118,625

105,526

101,237

76,900

Total equity and liabilities

351,209

324,333

309,518

253,769

199,393

Cash flows from operating activities

10,784

12,595

7,209

8,500

11,455

Cash flows from investing activities attributable to operating

activities

16,452

14,936

16,840

16,002

9,278

4,645

8,973

13,712

8,316

852

Cash flows from financing activities

111

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

The general risk premium of 6.5% reflects the general risk of a

capital investment in the equity market and is oriented on the
Morgan Stanley Capital International (MSCI) World Index.
Since 2010, the specific business risk price fluctuations in
Volkswagen preferred shares has been modeled when calculating
the beta factor in comparison to the MSCI World Index.
The switch in benchmark index from the DAX to the MSCI
World Index was necessary because Volkswagen shares experienced
considerable price fluctuations in 2008 and 2009, and the share
class in the DAX was changed to preferred shares in 2010. The
MSCI World Index sets a standard that reflects a global capital
market benchmark for investors.
The analysis period for the beta factor calculation spans five
years with annual beta figures on a daily basis and an average
subsequently being calculated. A beta factor of 1.38 (1.32) was
determined for 2014.

R E T U R N O N I N V E ST M E N T ( R O I ) A N D VA L U E C O N T R I B U T I O N

The Volkswagen Groups financial target system centers on continuously and sustainably increasing the value of the Company. We
have been using the return on investment (ROI) and value contribution*, a key performance indicator linked to the cost of capital,
for a number of years, in order to use resources in the Automotive
Division efficiently and to measure the success of this.
The concept of value-based management allows the success of
our innovative, environmentally oriented product portfolio to be
evaluated. This concept also enables the earnings strength of
individual business units and projects, such as new plants, to be
measured.
Components of value contribution

Value contribution is calculated using operating profit after tax and

the opportunity cost of invested capital. Operating profit shows the
economic performance of the Automotive Division and is initially a
pre-tax figure.
Using the various international income tax rates of the relevant
companies, we assume an overall average tax rate of 30% when
calculating the operating profit after tax.
The cost of capital is multiplied by the invested capital to give
the opportunity cost of capital. Invested capital is calculated as total
operating assets (property, plant and equipment, intangible assets,
lease assets, inventories and receivables) less non-interest-bearing
liabilities (trade payables and payments on account received).
As the concept of value-based management only comprises our
operating activities, assets relating to investments in subsidiaries
and associates and the investment of cash funds are not included
when calculating invested capital. Interest charged on these assets
is reported in the financial result.

C O ST O F C A P I TA L A F T E R TA X
A U TO M OT I V E D I V I S I O N

2014

2013

Risk-free rate

1.7

2.6

MSCI World Index market risk premium

6.5

6.5

Volkswagen-specific risk premium

2.5

2.1

(1.38)

(1.32)

10.7

11.2

(Volkswagen beta factor)

Cost of equity after tax
Cost of debt
Tax

2.3

3.7

0.7

1.1

Cost of debt after tax

1.6

2.6

Determining the current cost of capital

Proportion of equity

66.7

66.7

The cost of capital is the weighted average of the required rates of

return on equity and debt. The cost of equity is determined using the
Capital Asset Pricing Model (CAPM ).
This model uses the yield on long-term risk-free Bunds,
increased by the risk premium attaching to investments in the
equity market. The risk premium comprises a general market risk
and a specific business risk.

Proportion of debt

33.3

33.3

7.7

8.3

Cost of capital after tax

The cost of debt is based on the average yield for long-term debt. As
borrowing costs are tax-deductible, the cost of debt is adjusted to
account for the tax rate of 30%.
A weighting on the basis of a fixed ratio for the fair values of
equity and debt gives an effective cost of capital for the Automotive
Division of 7.7% (8.3%) for 2014.

* The value contribution corresponds to the Economic Value Added (EVA). EVA is a
registered trademark of Stern Stewart & Co.

112

G R O U P M A N A G E M E N T R E P O RT

Results of Operations, Financial Position and Net Assets

Invested capital rose to 78,889 million (72,749 million), primarily due to increased investments in property, plant and equipment,
investment property and intangible assets, excluding capitalized
development costs (capex).
The return on investment (ROI) is the return on invested capital
for a particular period based on the operating profit after tax. It rose
year-on-year in 2014 due to earnings-related factors, and at 14.9%
(14.5%) was well above our minimum required rate of return of 9%.
At 6,074 million (6,038 million), the opportunity cost of
capital (invested capital multiplied by cost of capital) was level yearon-year. The increased operating profit after the opportunity cost of
invested capital led to a clear improvement in the value contribution, which grew to 5,660 million (4,497 million).
More information on value-based management is contained in
our publication entitled Financial Control System of the Volkswagen Group, which can be downloaded from our Investor
Relations website: www.volkswagenag.com/ir

R E T U R N O N I N V E ST M E N T ( R O I ) A N D VA L U E C O N T R I B U T I O N
I N T H E R E P O RT I N G P E R I O D

The operating profit after tax of the Automotive Division, including

the proportionate operating profit of the Chinese joint ventures,
was 11,734 million (10,536 million) in fiscal year 2014. The
year-on-year increase was due to positive volume and mix effects,
optimized product costs and the significant improvement in the
proportionate operating profit of the Chinese joint ventures. These
factors more than offset the deteriorations in exchange rates,
higher depreciation charges as a result of increased capital
expenditures, higher research and development costs, and greater
fixed costs due to growth factors. In addition, the prior year had
been impacted by contingency reserves in the areas of Passenger
Cars and Power Engineering. Effects on earnings and assets from
purchase price allocation are not taken into account as this is
beyond what is feasible from an operational management
perspective.

R E T U R N O N I N V E ST M E N T ( R O I ) A N D VA L U E C O N T R I B U T I O N I N T H E A U TO M OT I V E D I V I S I O N *

million

2014

2013

Operating profit after tax

11,734

10,536

Invested capital (average)

78,889

72,749

14.9

14.5

Return on investment (ROI) in %

Cost of capital in %

7.7

8.3

Cost of invested capital

6,074

6,038

Value contribution

5,660

4,497

* Including proportionate inclusion of the Chinese joint ventures (including the relevant sales and component companies) and allocation of consolidation adjustments between the
Automotive and Financial Services divisions.

113

G R O U P M A N A G E M E N T R E P O RT

Volkswagen AG

Volkswagen AG
( CO N D E N S E D, I N ACCO R DA N C E W ITH T H E G E R M A N CO M M E R C I A L CO D E )

Production and unit sales exceed the 2013 figure,

sales and net retained profits also up year-on-year.

remained unchanged at 9.3% (9.3%). The other operating result

amounted to 0.9 billion (0.9 billion), roughly on a level with the
previous year.
At 6.1 billion, the financial result remained constant year-onyear.
Volkswagen AGs result from ordinary activities decreased
overall to 4.2 billion (4.6 billion) in 2014. After deducting income
taxes, net income for the year was 2.5 billion.

N ET I N COME F OR TH E Y EA R

At 69.0 billion, Volkswagen AGs sales in the reporting period were

up 5.2% on the previous year. The proportion of sales generated
outside Germany was 62.3% (62.8%). Cost of sales increased by
5.4% to 65.3 billion. As a result, gross profit improved to 3.7 billion (3.6 billion).
Selling, general and administrative expenses were 5.6% higher
in fiscal year 2014 than in the previous year, at 6.4 billion; the
ratio of selling, general and administrative expenses to sales

I N C O M E STAT E M E N T O F V O L K SWA G E N A G

million

B A L A N C E S H E E T O F V O L K SWA G E N A G A S O F D E C E M B E R 3 1

million

2014

2013

Sales

68,971

65,587

Cost of sales

65,293

61,937

Gross profit on sales

+ 3,678

+ 3,650

6,428

6,088

Total assets
Equity

Selling, general and administrative

expenses
Other operating result

2014

2013

Fixed assets

87,103

69,931

Inventories

3,932

3,695

Receivables*

16,667

22,132

Cash-in-hand and bank balances

+ 870

+ 944

Financial result*

+ 6,108

+ 6,115

Special tax-allowable reserves

Result from ordinary activities

+ 4,227

+ 4,620

8,434

11,279

116,135

107,037

28,493

25,874

33

41

Long-term debt

20,883

16,450

Taxes on income

1,751

1,542

Medium-term debt

28,640

29,602

Net income for the year

2,476

3,078

Short-term debt

38,085

35,070

Retained profits brought forward

Appropriations to revenue reserves
Net retained profits

180

1,210

2,299

1,874

* Including prepaid expenses.

* Including write-downs of financial assets.

114

G R O U P M A N A G E M E N T R E P O RT

Volkswagen AG

In our assessment, the economic position of Volkswagen AG is just

as positive as that of the Volkswagen Group.

NET ASSETS AND FI NANCIAL POSITION

Total assets amounted to 116.1 billion at December 31, 2014,

9.1 billion higher than in the previous year. At 2.8 billion,
investments in tangible and intangible assets were up slightly yearon-year. Investments in financial assets declined by 1.6 billion to
18.2 billion (19.9 billion). At 87.1 billion, fixed assets exceeded
the 2013 figure by 24.6% at the balance sheet date.
Current assets (including prepaid expenses) amounted to
29.0 billion, down a total of 8.1 billion year-on-year. This was
mainly caused by the decrease in receivables from affiliated
companies and lower liquid assets.
Equity amounted to 28.5 billion at December 31, 2014. The
10.1% increase was due in particular to the capital increase and the
improved net retained profits.
The equity ratio was 24.5% (24.2%). Provisions increased by a
total of 2.6 billion on the previous year. This was primarily
attributable to other provisions, which grew by 1.6 billion to
12.7 billion. Provisions for pensions and similar obligations rose
by 0.7 billion to 13.1 billion, while provisions for taxes were up
0.3 billion to 5.3 billion. Higher liabilities to affiliated companies
in particular saw total liabilities (including deferred income) rise by
7.4% as against December 31, 2013, to 56.5 billion.
The interest-bearing portion of debt increased to 48.2 billion
(45.1 billion).

DIVIDEN D PROPOSAL

In accordance with section 58(2) of the Aktiengesetz (AktG German Stock Corporation Act), 180 million of the net income for the
year was appropriated to other revenue reserves. The Board of
Management and Supervisory Board are proposing to the Annual
General Meeting to pay a total dividend of 2.3 billion from net
retained profits, i.e. 4.80 per ordinary share and 4.86 per
preferred share.

P R O P O S A L O N T H E A P P R O P R I AT I O N O F N E T P R O F I T

2014

Dividend distribution on subscribed capital

(1,218 million)

2,294,348,709.48

of which on: ordinary shares

1,416,431,126.40

preferred shares

877,917,583.08

Balance (carried forward to new account)

4,696,698.46

Net retained profits

2,299,045,407.94

E M P L OY E E PAY A N D B E N E F I T S AT V O L K SWA G E N A G

million

2014

2013

Direct pay including cash benefits

7,292

73.6

6,545

71.4

Social security contributions

1,234

12.5

1,116

12.2

Compensated absence

1,022

10.3

930

10.1

359

3.6

579

6.3

9,907

100.0

9,170

100.0

Retirement benefits
Total expense

115

G R O U P M A N A G E M E N T R E P O RT

Volkswagen AG

VEH ICLE SALES

PU RC HASI NG VO LUM E

Volkswagen AG sold a total of 2,615,686 vehicles in fiscal year 2014,

up 4.8% on the figure for the previous year. The proportion of
vehicles sold outside Germany was 69.3% (70.5%).

The purchasing volume across the six Volkswagen AG sites in

Germany amounted to 27.2 billion in fiscal year 2014 (26.2
billion); the proportion attributable to German suppliers was 67.7%
(68.1%). Of the total purchasing volume, 21.7 billion was spent on
production materials and 5.5 billion on capital goods and services.

PRODUCTION

Volkswagen AG produced a total of 1,230,891 vehicles at its vehicle

production plants in Wolfsburg, Hanover and Emden in the
reporting period, up 5.3% year-on-year. Volkswagen AGs average
daily production remained on a level with the previous year, at
5,068 units.

E X P E N D I T U R E O N E N V I R O N M E N TA L P R OT E C T I O N

Expenditure on environmental protection measures is split

between investments and operating costs for production-related
environmental protection. Of our total investments, only those that
are spent exclusively or primarily on environmental protection are
included in environmental protection investments. We distinguish
here between additive and integrated investments. Additive
environmental protection measures are separate investments that
are independent of other investments relating to the production
process. They can be upstream or downstream of the production
process. In contrast to additive environmental protection measures,
the environmental impact is already reduced during the product
development phase in the case of integrated measures. Our focus in
2014 was on water pollution control.
The operating costs recognized for environmental protection
relate exclusively to production-related measures that protect the
environment against harmful factors by avoiding, reducing, or
eliminating emissions by the Company. Resources are also
conserved. For example, these include expenditures incurred to
operate equipment that protects the environment as well as
expenditures for measures not relating to such equipment. Our
focus in 2014 was on water pollution control, waste management
and air pollution control.

E M P L OY E E S

As of December 31, 2014, a total of 112,561 people were employed

at the sites of Volkswagen AG, excluding staff employed at subsidiaries. Of this figure, 5,044 were vocational trainees. 3,997
employees were in the passive phase of their partial retirement. The
workforce grew by 4.7% as against the prior-year reporting date.
Female employees accounted for 16.2% of the workforce.
Volkswagen AG employed 3,930 part-time workers (3.5%). The
percentage of foreign employees was 5.8%. The proportion of
employees in the production area who have completed vocational
training relevant for Volkswagen was 82.7%. 17.5% of the
employees were graduates. The average age of employees in fiscal
year 2014 was 42.8 years.
RESEA RC H AN D DEVELOPMENT

Research and development costs for Volkswagen AG under the

German Commercial Code amounted to 4.9 billion (4.4 billion)
in 2014. 11,531 people were employed in this area at the end of the
reporting period.

V O L K SWA G E N A G E X P E N D I T U R E O N E N V I R O N M E N TA L P R OT E C T I O N

million

2014

Investments
Operating costs

116

2013

2012

2011

2010

19

14

18

12

226

224

216

200

197

G R O U P M A N A G E M E N T R E P O RT

Volkswagen AG

OPERATING COSTS FOR ENVIRONMENTAL PROTECTION AT VOLKSWAGEN AG 2014

Share of environmental protection areas in percent

Water pollution
control

30.0

Waste management

29.2

Air pollution control

22.4

Soil clean-up

7.2

Climate protection

5.3

Conservation and
landscape care

3.2

Noise control

2.7
0

10

20

30

40

50

60

70

80

90

100

B U S I N E S S D E V E L O P M E N T R I S K S A N D O P P O RT U N I T I E S AT

D E P E N D E N T C O M PA N Y R E P O RT

V O L K SWA G E N A G

The Board of Management of Volkswagen AG has submitted to the

Supervisory Board the report required by section 312 of the AktG
and issued the following concluding declaration:

The business development of Volkswagen AG is exposed to

essentially the same risks and opportunities as the Volkswagen
Group. These risks and opportunities are explained in the Report
on Risks and Opportunities on pages 160 to 172 of this annual
report.

We declare that, based on the circumstances known to us at the

time when the transactions with affiliated companies within the
meaning of section 312 of the German Stock Corporation Act (AktG)
were entered into, our Company received appropriate consideration for each transaction. No transactions with third parties or
measures were either undertaken or omitted on the instructions of
or in the interests of Porsche or other affiliated companies in the
reporting period.

R I S K S A R I S I N G F R O M F I N A N C I A L I N ST R U M E N T S

Risks for Volkswagen AG arising from the use of financial instruments are the same as those to which the Volkswagen Group is
exposed. An explanation of these risks can be found on pages 171 to
172 of this annual report.

The Annual Financial Statements of Volkswagen AG (in accordance with the HGB) can be
accessed from the electronic companies register at www.unternehmensregister.de.

117

G R O U P M A N A G E M E N T R E P O RT

Sustainable Value Enhancement

Sustainable Value
Enhancement
We run our business responsibly and with a long-term perspective along the entire value chain.
Everyone should benefit from this our customers, our employees, the environment and society.

The main financial key performance indicators for the Volkswagen

Group are described in the Results of Operations, Financial
Position and Net Assets chapter. Nonfinancial key performance
indicators also attest to the effectiveness of our Companys value
drivers. These include our processes in the areas of research and
development, procurement, production, marketing and sales,
information technology and quality assurance. In all of these
processes, we are constantly aware of our responsibility towards
our customers, our employees, the environment and society. In this
chapter, we show how we increase the value of our Company in a
sustainable way using examples.

Management and coordination

The Volkswagen Group has established a clear management

structure for coordinating CSR and sustainability. The supreme
sustainability board is the Group Board of Management (Sustainability Board). It is regularly informed by the Group CSR &
Sustainability steering group on the issues of corporate responsibility and sustainability. The Group CSR & Sustainability steering
groups members include executives from central Board of Management business areas and representatives of the Group Works
Council and of the brands and regions. Among other things, the
steering group makes decisions on the strategic sustainability goals,
monitors the extent to which they are being met using management
indicators, identifies key action areas and approves the sustainability report.
The CSR & Sustainability office supports the Group CSR &
Sustainability steering group. In addition to coordinating all sustainability activities within the Group and the brands, its duties
include running the stakeholder dialog, which is held at Group level,
for example with sustainability-driven analysts and investors. CSR
project teams work on topics across business areas, such as
reporting, stakeholder management, or issues relating to sustainability in supplier relationships. This coordination and working
structure is also largely established across the brands and is
constantly expanding. Since 2009, the CSR & Sustainability
coordinators for all brands and regions have met once a year to
promote exchange across the Group, establish consistent structures
and learn from one another. This Group CSR meeting has proven
itself as an integral part of the Group-wide coordination structure.
With the help of our IT-based sustainability management
system, we again gathered comprehensive data and information in
near real-time in 2014 for Group sustainability reporting. At the
same time, we expanded our sustainability management system to
further increase transparency and the quality of the data, so that we
can monitor CSR risks more easily and better identify CSR
opportunities.

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y A N D S U STA I N A B I L I T Y

The Volkswagen Group is committed to transparent and responsible corporate governance. The greatest challenge in implementing this across all levels and every step of the value chain is our
complexity: with 12 brands, over 100 production locations and
more than 590,000 employees, we are one of the largest companies
in the world.
Our Strategy 2018 sets the pace: the Volkswagen Group is
aiming to become the most successful, fascinating and sustainable
automobile manufacturer in the world by 2018. Sustainability
means simultaneously striving for economic, social and environmental goals in a way that gives them equal priority. To us this
means creating enduring value, facilitating good work, and using
the environment and resources with care. Thanks to its corporate
culture, Volkswagen is better suited than almost any other company
to combine a modern understanding of responsibility and sustainability with the traditional values of running a business to form
an integrated corporate social responsibility (CSR) approach. Our
CSR concept is aimed at ensuring that we recognize and manage at
an early stage risks and development opportunities in the areas of
environment, society and governance at every step along the value
chain, and further improve our reputation. This is how our CSR
activities contribute to increasing our Companys value in a longterm and sustainable way.

118

G R O U P M A N A G E M E N T R E P O RT

Sustainable Value Enhancement

Code of Conduct and guidelines

Our Code of Conduct, which is applicable throughout the Group,

provides guidance for our employees in the event of legal and
ethical challenges in their daily work. It embodies the Group values
of customer focus, top performance, creating value, renewability,
respect, responsibility and sustainability. All employees are equally
responsible for adhering to these principles.
International conventions, regulations and internal rules are
also key guidelines for our conduct. We also acknowledge our
commitment to the Declaration on Social Rights and Industrial
Relationships at Volkswagen (Volkswagen Social Charter), the
Charter on Labor Relations and the Temporary Work Charter, all of
which address fundamental human rights, labor standards and
principles.
Strategic stakeholder management

We cannot guarantee success in the long term without knowing the

expectations of our stakeholders or actively communicating with
them. As the complexity of the Volkswagen Group increases, so do
the expectations of and our network of relationships with the
various stakeholders. Our exchanges with them cover many aspects,
ranging from expectation management to innovation momentum,
down to identifying opportunities and risks. We are open to a
constructive and equitable dialog where we learn from one another,
but to which we can also contribute our own interests. Our goal is to
agree on a common solution, but at the very least to gain a mutual
understanding on our initial situation and positioning.
Our brands in particular hold comprehensive stakeholder
dialogs that we combine at Group level to discuss Group-wide issues
in detail. These include our membership of organizations that hold
in-depth discussions on issues related to sustainable development.
At an international level, we are involved in the World Business
Council for Sustainable Development (WBCSD) and participate in
CSR Europe, a leading European business network for corporate
responsibility. In addition, we are represented on the board of
econsense, the Forum for Sustainable Development of German
Business. We transfer the knowledge we gain from this to the
brands and the regions.
Since 2002, we have also been committed to the UN Global
Compact, the largest and most important CSR initiative in the world.
Over 12,000 participants from more than 145 countries work
together to shape a more sustainable and equitable world economy.
The Volkswagen Group and its brands make a significant
contribution to this initiative. The values of the Global Compact
comprise ten principles governing human rights, labor standards,
environmental protection and the fight against corruption. We
achieved the Global Compact Advanced Level in 2014 again
thanks to our progress report on implementing these principles at
our locations. Furthermore, we use our expertise to help other

119

companies in the Global Compact to embrace their global

responsibility, for example through our active participation as a
standing member of the advisory board for the Sustainable
Supplier Chain project.
We publish information about the stakeholder dialogs in our
annual sustainability report so that our interaction with stakeholders is understandable. Stakeholder management is steered
and coordinated by the Group CSR & Sustainability steering group,
the Groups CSR project team, and the brand and regional project
teams. Since we selectively choose relevant departments for the
project teams, we are also able to respond to the many requirements of the stakeholders concerned within a short time.
Our stakeholder management consists of a variety of instruments: dialogs, workshops, symposiums, public debates, social
media, questionnaires, evaluations and projects. In order to
coordinate these activities at strategic level, we document them in
an IT-based stakeholder management system that is individually
tailored to the Volkswagen Groups requirements. Since 2014, it
has supported us in connecting the relevant stakeholders to the key
issues for the Company.
In 2014, we used the results of the comprehensive stakeholder
questionnaires from brands and companies to identify these key
issues. In order to systematically prioritize the issues identified, we
evaluate them using the latest international sustainability studies
and benchmark them against the guidelines and conventions that
Volkswagen is committed to. Internal bodies that also involve all
brands and regions discuss and evaluate the key issues. These
discussions center around three main criteria:
> the expectations of stakeholders,
> the significance for the Company and
> the extent to which the Company can influence these issues.
The results give us the Volkswagen Groups key action areas for
achieving our goal of becoming the most sustainable automotive
company in the world.
CSR Projects

The Volkswagen group initiates and manages a variety of CSR

projects around the world, which are based on the following key
principles:
> They are compatible with the Groups principles while at the
same time addressing a specific local or regional issue.
> They demonstrate the diversity in the Group and in the social
environment in which the projects are implemented.
> They are the result of close stakeholder dialog with the local
players involved in implementation.
> Project management is the responsibility of the local units
working on the project.

GROU P M A NAGE ME NT R E PO RT

Sustainable Value Enhancement

VO L K S WAG E N G R O U P S K E Y AC T I O N A R E A S

Attractiveness
as an employer
Participation

Diversity
and equality

Customer
satisfaction

Stability and
profitability

Compliance, risk
management, corporate
governance

Training

Quality

Corporate
responsibility

Health

Supplier
relationships

Environmentally
friendly products /
electrification

Intelligent
mobility and
networking

Vehicle
safety

Climate and
environmental
protection

Resource conservation
across the lifecycle

M O S T S U S TA I N A B L E
AU T O M O T I V E
CO M PA N Y I N T H E
WORLD

international locations. As part of its strategic partnership, the

Volkswagen Group thus helps the German Red Cross to find even
more people who are willing to volunteer their time. This goal is
central to the partnership, in conjunction with strengthening the
Red Crosss rescue service.

The Volkswagen Group supports a large number of projects that

promote the arts and culture, education, science, health and sport,
or that serve to develop regional structures and conserve nature.
These projects make CSR a learning platform for all brands and in
all of the Companys regions. Our long-standing cooperation with
the German Nature and Biodiversity Conservation Union (NABU),
the contact we have to our local neighborhoods at many Group
locations and our cooperation with the German Red Cross (DRK)
are examples of this.
NABU has worked with Volkswagen AG for many years and,
since the end of 2012, this alliance has been based on a new,
expanded cooperation and advisory agreement. NABU is a strategic
partner for Volkswagen on the Groups path to becoming the most
environmentally friendly automobile manufacturer in the world.
For over 15 years, Volkswagen Commercial Vehicles at the
Hanover location has fostered extensive dialog with its neighbors;
the plant there is in close proximity to residential areas. This made
it possible to build up a climate of mutual understanding. In
addition to communicating with its neighbors, the focus of the
Poznan location in Poland is on long-term initiatives to support and
promote local community projects.
Humanity, public spirit and responsibility these are the values
on which the work of the German Red Cross is based, and which we
also share in the Volkswagen Group. We are promoting sound,
balanced social development, in Germany and at our other

RESEA RC H AN D DEVELOPMENT

The Volkswagen Groups research and development activities

continued to concentrate on expanding our product portfolio and
improving the functionality, quality, safety and environmental
compatibility of our products in fiscal year 2014.
Focus of our research and development activities

We plan to cut the average CO2 emissions of the Volkswagen Groups

new European passenger car fleet to 120 grams per kilometer by
2015. We have already succeeded in reducing CO2 emissions over
the past five years by 25 grams of CO2 per kilometer to 126 grams of
CO2 per kilometer. Since 2012, the CO2 emissions for vehicle
manufacturers new European passenger car fleets have been
regulated by law: for 2014, the emissions of 80% of the new vehicle
fleet were not permitted to exceed the statutory level of 130 grams of
CO2 per kilometer. The figure for the Volkswagen Group in the
reporting period was 115 grams of CO2 per kilometer. We currently
offer a total of 532 model variants (engine-transmission combinations) that emit less than 130 grams of CO2 per kilometer. For
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G R O U P M A N A G E M E N T R E P O RT

Sustainable Value Enhancement

CO2 EMISSIONS OF THE VOLKSWAGEN GROUP'S EUROPEAN (EU 28) NEW PASSENGER CAR FLEET

in grams per kilometer

2014

126*

2013

129

2012

135

2011

137

2010

144
0

20

40

60

80

100

120

140

160

180

200

* Subject to official publication by the European Commission.

the legal basis) are in place, functions like these could go into series
production in the next few years. Audi has shown what the
technology can already do: the Audi RS 7 piloted driving concept
completed a lap of the Hockenheim Grand Prix track in the
reporting period at racing speeds of up to 240 km/h without a
driver. The results of this test are being integrated into the development of series models and are helping to increase the safety and
comfort of future vehicles.
Volkswagen introduced innovative LED systems for front and
rear lighting in the volume segment in 2014, making the technology
available to a broader customer base. The latest LED tail light is the
first in the world to have an integrated animated brake light
function, which increases perception speed. A compact projection
model means that the new, highly functional LED headlights
incorporate lights for country driving, urban areas and highways,
dynamic curve lighting and, with the use of a camera, a dynamic
high-beam assistant. Volkswagen will systematically continue to
implement LED technology (including the masked high beam
Dynamic Light Assist) in the volume segment; introduction in the
compact class is scheduled for 2015.
Body shell production remains a strategic development focus.
Volkswagen is the first automobile manufacturer to use hot-formed,
high-strength steels in series models. We are also pursuing a
vehicle- and platform-specific composite material approach in this
area, i.e. the use of diverse materials in a body shell. We are also
systematically integrating our extensive experience with lightweight
materials, in particular aluminum, into the Modular Transverse
Toolkit (MQB). Volkswagen has developed and patented resistance
element welding for the application of these materials. This new
technique is used to bond different materials to steel. Aluminum is
also increasingly being used in the development of new platforms

416 model variants, we are already below the threshold of 120

grams of CO2 per kilometer. Of these, 85 model variants are even
below 100 grams of CO2 per kilometer (see chart on page 123).
Recognizing new developments in society, politics, technology,
the environment and the economy at an early stage is of core
importance to Volkswagen, since these form an important basis for
innovations and our business success. Volkswagens Group
Research function constantly addresses the latest trends and has
established research offices in the key global automotive markets.
Research offices in China, Japan, the USA and other locations
observe technological areas relevant to the automotive industry,
conduct cooperative projects with research institutions and local
companies, and thus capture new insights for the Volkswagen
Group.
In addition to drivetrain system electrification (see the section
entitled Fuel and drivetrain strategy on page 149), development
work in 2014 focused on connectivity, i.e. the link between the
vehicle and its surrounding environment. The speed at which the
functionality and market penetration of networked online systems
are growing makes it increasingly important for vehicles to be able
to network to the drivers own devices, to other vehicles and to
their surrounding environment, particularly infrastructure. This
increasing functionality is accompanied by new types of display and
control concepts. The shift towards replacing buttons and switches
with touchscreen displays and recognition sensors is continuing,
and is reflected in our vehicles.
One of the Audi brands most important development areas is
piloted driving. Driver assistance should make the job easier
whenever it makes sense not just when maneuvering in tight
parking spaces or in parking lots, but also for example in slowmoving traffic on the highway. Once the necessary conditions (e.g.

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switch between looking at the instruments and looking at the road,

reducing the rate at which the drivers eyes become fatigued. The
Traffic Jam Assist, the enhanced Area View system and an expanded
City Emergency Braking function with pedestrian detection round
off the Passats driver assistance systems. The new Passats range of
engines also includes new innovations: the plug-in hybrid GTE
version combines a 115 kW (156 PS) TSI engine and an 85 kW
(115 PS) electric motor to generate a system output of 160 kW
(218 PS). In all-electric driving, the Passat GTE can cover up to
50 km, with a total range of more than 1,000 km.
The e-Golf and Golf GTE introduced e-mobility into Volkswagens popular series in 2014, heralding a new chapter in the
Golfs distinguished track record. Fitted with an 85 kW (115 PS)
electric motor, the e-Golf consumes 12.7 kWh per 100 km (NEDC),
making it the most efficient electric vehicle in its class. Its inbuilt
lithium-ion battery gives it a range of up to 190 km. The e-Golf also
comes with an optional heat pump for particularly energy-efficient
heating. This utilizes both heat from the ambient air and the heat
given off by the drive system components. The energy from the
high-voltage battery that this saves helps increase the cars range.
The plug-in hybrid Golf GTE is a zero-emission, long-distance sports
car all in one. A 110 kW (150 PS) TSI engine and a 75 kW (102 PS)
electric motor combine to create a new driving experience and a top
speed of 222 km/h. The transmission uses a six-speed, dual-clutch
gearbox (DSG) specially developed for hybrids. Fully-charged, the
Golf GTE can cover up to 50 km in all-electric driving, with an
overall range of approximately 940 km. With average combined fuel
consumption of just 1.5 l/100 km and CO2 emissions of 35 g/km, it
sets new standards in efficiency and sustainability.
Audi also launched a plug-in hybrid in 2014: the Audi A3 e-tron.
Combining the strengths of an electric drive system with the
advantages of an internal combustion engine, the first premium
compact car to be equipped with this innovative drive system is
perfectly suited to daily use. A state-of-the art 110 kW (150 PS) TFSI
engine and a 75 kW (102 PS) electric motor generate system power
of 150 kW (204 PS). Its combined average fuel consumption is
1.5 l/100 km, with CO2 emissions of 35 g/km.
In addition, the Audi brand unveiled the third generation of the
Audi TT in the reporting period. The profile of the design icon was
systematically enhanced: the roof line was tightened, the wheelbase
lengthened and the overhangs shortened, making the new TT even
sportier and more dynamic than its predecessor. But the newest
generation also scores points in terms of efficiency: the vehicle
weight has been reduced by 50 kg, helping set new standards in the
sports car class with CO2 emissions of 110 g/km.

on which vehicles such as the Touareg and Phaeton are based. We

are also researching into economical lightweight construction
technologies for series production as part of the Open Hybrid
LabFactory public-private partnership in collaboration with the
Lower Saxony Research Center for Vehicle Technology (NFF) at the
Technical University of Braunschweig, the Fraunhofer Gesellschaft
and various other industry partners. The aim is to have around 200
researchers from industry and science jointly developing hybrid
lightweight structures by the end of 2015. The foundation stone for
the new development center in Wolfsburg was laid in 2014.
Innovations capture our customers imaginations

The Volkswagen Passenger Cars brand unveiled a wide range of

innovations in the reporting period with the launch of the MQBbased eighth generation Passat. The new model is the worlds first
car to be available with the Emergency Assist and Trailer Assist
safety and assistance systems. Emergency Assist brings together
Lane Assist and Adaptive Cruise Control (ACC) to form a new driver
assistance system: as soon as the sensors detect that the driver is not
steering, braking, or accelerating, the system makes an escalating
sequence of attempts to wake the driver before bringing the car to
an emergency stop. The hazard lights are automatically activated
and the Passat executes gentle steering maneuvers to warn nearby
traffic of the danger. The ACC system observes the traffic ahead to
prevent a collision. With the Passat, Volkswagen is the worlds first
automobile manufacturer to launch a driver assistance system to
make maneuvering a vehicle with a trailer easier. Trailer Assist uses
a rear view camera to observe and analyze the trailers hitch
articulation angle, and to calculate the steering angle. The rearview
mirror adjustor control doubles as a joystick, which the driver can
use to change the car/trailer combinations driving direction,
meaning that all the driver needs to do is operate the brake and gas
pedals. Inside the Passat, the Active Info Display system is the first
interactive, fully digital instrument cluster to be fitted in a
Volkswagen. The instruments are displayed in virtual format only.
The speedometer and tachometer display areas can be customized
to include information on driving, navigation and assistance
functions. The Active Info Display can also show data from the infotainment system, such as telephone contact images or album covers.
In 2015, the new Passat will also become the first Volkswagen to be
equipped with a head-up display. This projects key information
such as speed or navigation images onto a retractable glass surface
in front of the windshield directly in the drivers line of view. To
the drivers eyes, the data appear to be projected roughly two meters
in front of the vehicle. This means that there is far less need to

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CO2 EMISSIONS STATUS QUO

Number of vehicles

2012
2013
2014

100g CO2 /km

85

120g CO2 /km

416

130g CO2 /km

532
0

50

100

150

200

250

300

350

400

450

500

550

saving freewheeling function and the new version of Scanias EcoRoll system, which now selects gears even more intelligently on
downward slopes, are also available from 2014. Scania also
demonstrated the further savings potential offered by the use of
new low-viscosity oils with unique lubricating qualities.
The new MAN TGX EfficientLine 2, which has been specifically
designed to reduce fuel consumption, comes with the full range of
efficiency technologies. These include in particular the EfficientCruise GPS cruise control system, the TopTorque torque enhancer
and the latest version of MAN TeleMatics for data exchange between
the vehicle and dispatcher. EfficientCruise was unveiled in 2014.
This GPS-based system controls the speed of trucks or buses and
helps save fuel and reduce CO2 emissions. The TGX EfficientLine 2
is more than 6% more fuel-efficient than its predecessor.
MAN presented the MAN 12V175D, the first variant of its new
high speed engine series, in fiscal year 2014. The 12-cylinder
engine is fully designed for the requirements of commercial
shipping and is optimized for use in ferries, offshore supply vessels,
tugboats and all-purpose vessels. The engine also scores points in
environmental friendliness: its compact and modular exhaust gas
aftertreatment system uses selective catalytic reduction and is based
on MANs Ad Blue technology.

Porsche launched the Macan compact SUV in fiscal year 2014: its
fifth series. The Macans sporty sloping roof line is reminiscent of a
coup, and combined with a wraparound bonnet gives it a confident
and powerful appearance. Its rear features eye-catching, threedimensional LED taillights, while the interior exudes sporty elegance and high-quality materials. An efficient range of engines
rounds off the vehicle concept. The new 911 Targa was another
highlight for Porsche in 2014. Like the legendary original Targa of
1965, it features a characteristic fixed bar in place of a B pillar. At
the press of a button, the rear window opens and the roof panel
disappears automatically behind the back seats. It takes only 19
seconds to open or close this innovative roof.
Lamborghini premiered the Huracn, the replacement for its
successful Gallardo, in 2014. The sharp-edged design of the
Huracn, whose innovative light-weight chassis is made of carbon
and aluminum elements, focuses on a continuous line from the
front to the rear of the vehicle. The 449 kW (610 PS) V10 engine
catapults the Huracn from 0 to 100 km/h in only 3.2 seconds. Its
top speed is over 325 km/h.
Scania presented the third generation of its efficient Euro 6
engines with SCR (selective catalytic reduction) exhaust gas aftertreatment in the reporting period. The improved Scania retarder (a
key component of the integrated braking system) with new fuel-

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Sustainable Value Enhancement

the primary technology fields of connectivity, piloted driving, emobility and lightweight construction. The individual brands are
increasingly making use of our modular toolkits, which ensure
synergy effects both between models in one series and across all
series and brands. In addition, 2014 saw the start of a cross-brand
cooperation initiative in development processes. This aims to
ensure that methodology and system development can be further
improved in future. The brands are benefitting from an intensified
exchange of best practices, e.g. in virtual development. The joint
development of IT tools is designed to reduce future IT expenses.
Further synergies can be leveraged in heavy commercial vehicles
following the full acquisition of Scania. As part of the cooperation,
Scanias transmission hardware will gradually be implemented in
MANs TGS and TGX series vehicles from 2016. In addition, the
intention is for the next generation of Scanias current transmission
portfolio to be developed jointly. This partnership is designed to
result in components that set global standards in commercial
vehicle technology, while safeguarding brand identity.

Studies and concept vehicles pave the way to the future

The Volkswagen Passenger Cars brand offered a glimpse of a

possible SUV series in the vehicle category below the Tiguan with
the release of the T-Roc study at the Geneva Motor Show. This threedoor vehicle based on the Modular Transverse Toolkit (MQB)
features a progressive design, functional interior and innovative
infotainment solutions. Thanks to two removable roof panels,
which can be stowed in the boot with just a few movements, it also
offers the summery lightness of a convertible.
Volkswagen Passenger Cars presented a combination of sporty
coup and comfortable saloon at the Auto China show with its New
Midsize Coup study. With a shallow, wide body shell and a low
profile, the vehicle spans the gap between the compact and midrange classes. Its long bonnet, powerful roof line and unmistakable
C pillar with short boot form a dynamic silhouette. 20 inch chrome
rims, LED headlights with 3D optics, and a striking radiator grill
emphasize the models sportiness and elegance.
Audi presented potential additions to its TT series in 2014 with
the TT offroad and TT Sportback concepts. The four-door TT offroad concept completely reinterprets the design language of the TT,
combining the sporty character of a coup with the features of a
compact SUV. The TT Sportback concept retains the series design
language, but has elongated sporty lines with more tension, similar
to the A5 Sportback and A7 Sportback. Its high-performance
294 kW (400 PS) TFSI engine takes the car from 0 to 100 km/h in
less than 4 seconds.
Bentley incorporated plug-in hybrid technology into one of its
vehicles for the first time in 2014. The Bentley Hybrid Concept is
based on the Mulsanne flagship and is up to 25% more powerful
with 70% less CO2 emissions. The brands aim is for its first series
model with hybrid technology to be an SUV, available from 2017.
The plan is then to roll out hybrid technology throughout its entire
vehicle range.
Volkswagen Commercial Vehicles offered a glimpse into the
numerous passenger and goods transport solutions that will be
offered by the new generation of the Multivan/Transporter at the
IAA Commercial Vehicles show 2014 in Hanover with its TRISTAR
study. The concept vehicle represents a successful combination of
the best features found in the current T model series. Its off-road
capability combined with flexible transport and storage solutions
for work and leisure were well received.

Pooling strengths with strategic alliances

The Volkswagen Group is systematically pressing ahead with

research into and the ongoing development of high-voltage battery
systems for electric and plug-in hybrid drives in cooperation with
expert battery manufacturers. We continued and intensified these
cooperative projects in the reporting period. VOLKSWAGEN VARTA
Microbattery Forschungsgesellschaft mbH & Co. KG, which we
manage together with VARTA Microbattery GmbH, successfully
continued its work and achieved important research results in the
field of electric vehicle batteries in 2014.
Our collaborative projects with the Budapest University of
Technology and Economics and the Lawrence Berkeley National
Lab in California as well as with other national and international
partners are also in the area of battery research.
We continued our cooperation with Daimler AG in 2014 to produce the Crafter; this arrangement will continue until 2016.
Integrating external R&D expertise

In addition to our own internal development resources, the capacity

of development services providers is important for our development
process. They will help us to systematically advance our model
rollout and to successfully complete projects with the quality we
expect and reduced development times in the coming years. The
use of development service providers will be coordinated more
closely between Group brands in order to benefit from increased
economies of scale. We are also constantly expanding our cooperation with subsequent series suppliers in order to be able to tap
their expertise in the development phase of modules and components, including at international development sites.

Leveraging synergies increases efficiency

Our Technical Development department worked intensively on

leveraging further synergies between the brands in fiscal year 2014.
The focus here was on efficient use of resources in technical
development, with the goal of safeguarding the Groups long-term
competitiveness. The Group Board of Management Technology
Committee drove forward cross-brand cooperation, in particular in

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market-centric premium quality and innovations at competitive

conditions; second, to meet cost targets and ensure the profitability
of our products over their entire lifecycle; third, to ensure stable
and efficient flows of goods and safeguard global volume growth
through the permanent availability and consistently high quality of
procured components; and fourth, to create optimal working
conditions so that we can continue to raise employee satisfaction
and the attractiveness of the procurement function.
We have assigned action areas to each of these goals and
derived concrete programs from these. Each program comprises
defined measures and responsibilities for all brands and regions
which ensure that the procurement goals are achieved and will
have long-term benefits. We pool our strengths throughout the
Group and take advantage of opportunities across all brands and all
regions.

Numerous patents filed

In fiscal year 2014, we filed 6,198 (5,948) patent applications

worldwide for employee inventions, almost half of them in Germany.
The growth as against the prior year results in particular from the
increased number of applications relating to driver assistance and
information systems, alternative drive systems and lightweight
construction, and once again pays testament to the Companys high
innovative ability.
Key R&D figures

The Automotive Divisions total research and development costs

were up 11.7% year-on-year in the reporting period. Alongside new
models, the main focus was on the electrification of our vehicle
portfolio, an efficient range of engines and lightweight construction;
the proportion accounted for by alternative drive technologies
increased again. The capitalization ratio rose to 35.1% (34.2%).
Research and development costs recognized in the income
statement in accordance with IFRSs increased to 11.5 billion
(10.2 billion). This meant that their ratio to sales revenue in the
Automotive Division amounted to 6.5% (5.8%).
On December 31, 2014, the Research and Development function including the equity-accounted Chinese joint ventures
employed 45,742 people Group-wide (+4.5%), corresponding to
7.7% of the total headcount.

The Volkswagen FAST Future Automotive Supply Tracks initiative was launched together with suppliers in order to strengthen
the working relationship we have with them. We will work even
more closely and quickly with our most important partners on the
strategic issues of globalization and innovation. As a result, our
global plans will be coordinated ahead of schedule and innovations
will be implemented more efficiently and effectively.

PROCU REMENT

Procurements process optimization program

Procurement focused its activities in 2014 in particular on safeguarding new vehicle start-ups, developing new procurement
markets and ensuring continuity of supply to production.

The optimization and standardization of our processes and systems

for all Group brands and regions was pursued with high priority in
fiscal 2014. This enables us to achieve maximum transparency and
a high degree of consultation and integration within the Group. In
order to ensure the sustainability of these optimization measures,
we regularly conduct process and system audits.
The next step will be to strengthen our focus on the interface to
suppliers. The goal is also to work together with them on the basis of
optimal processes and systems.

Volkswagen FAST Future Automotive Supply Tracks

Procurement strategy

Our goal to have the most competitive and attractive procurement

organization is underpinned by four procurement goals derived
from the Group Strategy 2018: first, to actively shape our technical
and environmental innovation processes in order to provide

R E S E A R C H A N D D E V E L O P M E N T C O ST S I N T H E A U T O M OT I V E D I V I S I O N

million

Total research and development costs

of which capitalized development costs

2014

2013

2012

2011

2010

13,120

11,743

9,515

7,203

6,257

4,601

4,021

2,615

1,666

1,667

35.1

34.2

27.5

23.1

26.6

3,026

2,464

1,951

1,697

2,276

11,545

10,186

8,851

7,234

6,866

Capitalization ratio in %
Amortization of capitalized development costs
Research and development costs recognized in the income
statement

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In the Quality in Growth program, procurement focuses on

safeguarding start-ups and on managing the subcontractor structure. We hold cross-business area discussions with our suppliers to
ensure that supplier training corresponds with Volkswagens
quality and growth targets. The best practice approaches that we
defined together enable us to continually improve and are
anchored in common aims. The preventive safeguarding of startups is not only enhanced by simulated series production at the
suppliers, but also by integrating performance tests across all business areas at various stages of the product development process
prior to new vehicle start-ups. This enables us to identify problems
related to supply volume and quality in good time and to counteract
them.

Supply situation for procured components and raw materials

The supply of procured components to our component and vehicle

plants remained stable in 2014, despite a greater number of
unplanned events. After the first nine months of the reporting year,
the number of major disruptions impacting supply, such as fires,
floods and strikes, had already reached the prior-year level. The
further increase in production volumes and the need to continuously adapt equipment to meet market requirements also dominated the supply situation. Together with our suppliers, we have
overcome all of these challenges and supplied all areas of vehicle
production with procured components.
The critical success factors for a secure supply situation are an
efficient global early warning system based on continuous big data
analyses, the globally available MQB and MLB modular toolkits with
alternative sources of supply, the availability of all information on
facilities, tool capacities and locations relevant to supply, and the
processing of information on local risks.
Processes relating to Technical Development, Quality Assurance, Sales, Production/Logistics and Procurement across the
business were further optimized, with the aim of securing capacity
and removing bottlenecks. This will minimize response times and
speed up troubleshooting.
Good cooperation with our procured component suppliers
ensures that we achieve our supply goals. We once again strengthened this cooperation in the reporting period with a supplier
symposium.
Over the course of 2014, the global economy registered slower
growth with weaker economic signals seen in China, among other
places. This also affected the prices for many raw and input
materials such as crude oil, steel and rare earths, which stagnated
or declined. In addition, the reporting period was dominated by
political tensions, particularly in Russia and Ukraine. They had
increasingly international repercussions, which were also reflected
in prices on the sensitive raw materials markets. In order to counter
risks associated with high volatility, specific and more long-term
procurement strategies were used and will continue to be used in
Volkswagen procurement.

Developing new procurement markets

Procurement works in 39 locations across 23 countries, ensuring

that the production facilities are supplied with production materials
of the required quality and amount for the long term and at
competitive conditions. This ensures access to the relevant procurement markets against the background of increasing globalization.
In addition to established sources of supply, the number of
qualified suppliers in new growth markets such as the ASEAN
region is increasing. Our experience working with local suppliers,
for example in Pekan, Malaysia, will be carried over into new
projects via the regional procurement organization. This is
increasing the size of our global supplier base.
Thanks to these approaches, procurement is able to secure a
reliable supplier base for new locations quickly and efficiently.
Sustainability in supplier relationships

In the reporting period, we further developed our existing sustainability in supplier relationships concept from 2006 by integrating the Volkswagen requirements for sustainability in
relations with business partners (Code of Conduct for business
partners) into contracts with our suppliers. Where justified, we
conduct specific sample tests to check our suppliers compliance
with sustainability standards.
In 2014 we again gave our suppliers intensive training in order
to provide them with in-depth knowledge on sustainability, for
example through topic-specific discussion events in Argentina,
Brazil and Mexico. In Poland, Russia and Turkey, among other
countries, our suppliers also received further classroom training,
which was held together with other automobile manufacturers. Our
own employees are continually informed about and trained on the
issue of sustainability in supplier relationships.

Procured component and supplier management assure quality

within the supply process

Procured component management, as the technical area of

procurement, employs tool and process experts who safeguard new
vehicle start-ups and aggregate projects worldwide in terms of both
prevention and response. In addition, the experts underpin series
production. In line with the Group-wide growth strategy, procured
component management is focusing in particular on knowledge
transfer at the start of global projects. Procured component
management is globally networked. This means that synergy effects
can be achieved in both production and process optimization at
suppliers.

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standards together with our business partners and to secure volume

flows for the long term.

We have also continued working with our suppliers on this issue via
the Group Business Platform, where an Internet-based training
module on sustainability is available, among other things. All
suppliers who are registered on the platform are also requested to
complete this training module with a final performance review.
In addition, our business partners provide us with information
about their sustainability status using a questionnaire available on
the Group Business Platform; if necessary, a corporate unit will
introduce improvement measures at the supplier.
The sustainability in supplier relationships concept helps us
to create the necessary conditions for fulfilling our sustainability

Volkswagen Group purchasing volume

Volkswagen Group procurement mainly purchases production

materials, services and capex centrally. In the reporting period, the
purchasing volume including the Chinese joint venture companies increased by 7.7% to 145.5 billion. Suppliers in Germany
accounted for a share of 36.1% (37.3%).

V O L K SWA G E N G R O U P P U R C H A S I N G V O L U M E B Y B R A N D A N D M A R K E T

billion

2014

2013

Volkswagen Passenger Cars1

85.5

79.0

+ 8.4

Audi2

25.7

23.6

+ 8.8

KODA

7.1

6.5

+ 9.3

SEAT

4.4

3.9

+ 11.8

Bentley

0.8

0.7

+ 24.0

Porsche

5.0

3.7

+ 33.9

Volkswagen Commercial Vehicles

2.6

2.4

+ 6.4

Scania

6.5

6.4

+ 1.6

MAN

7.8

8.8

10.9

145.5

135.0

+ 7.7

93.4

87.9

+ 6.3

North America

6.3

6.3

1.0

South America

6.7

8.9

25.4

39.1

31.9

+ 22.7

Volkswagen Group
Europe/Other markets

Asia-Pacific1
1 Includes the Chinese joint ventures.
2 Audi includes Lamborghini and Ducati.

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TECHNOLOGY SPECIAL

Today is digital

igi

ow igiti ation is hanging the automotive in ustry

Digitization is a megatrend that is increasingly changing the way

we work and how we live our daily lives. Cars have become computers on wheels. Engine and chassis management, driver assistance
systems, satellite navigation, communications and entertainment
are developing at breakneck speed. At the same time car manufacturing is dominated by robots and the networking of machines,
systems and people the smart factory is becoming a reality. The
digitization of cars and car manufacturing plays a key role in our
Future Tracks program. What is at stake nothing less than the
opportunity to gain the leading position in the automotive industry
where this trend is concerned through leveraging new solutions.
As a consequence, we will be able to exert a considerable influence
on customer satisfaction, the strength of our products and the
attractiveness of our working environment.
The Volkswagen Group invested over 11.5 billion in research
and development in the past year, more than any other company.
The Group employs 46,000 research and development staff
worldwide. Our IT experts now number more than 10,000,
because we know the key significance of digitization. Industrial
production is entering a new era: the Industry 4.0 project envisages factories where components travel through the production
floor on small computer-controlled carts looking for free machines
to process them without human input. Tools and equipment

T H E C H A N G I N G AC E O

I N DUSTRY

Mechanization

I N D U S T RY

I N DUSTRY

Mass production

I N DUSTRY

Digitization/smart factory

I N DUSTRY

Automation and
robotics

repair themselves and order their own replacement parts automatically. However, the machines will not just be locally controlled, networked and thus independent. Production will also be
integrated with suppliers and sales. Comprehensively equipping
all production stages with sensors and flexible manufacturing
technologies aims to make it possible to deal with capacity fluctuations in an even more rapid and resource-efficient manner.
Customer desires can be implemented with even more customization, under Industry 4.0. We are already using many of the
technologies on which Industry 4.0 is based in our production
process. Driverless transport systems promptly deliver parts, and
intelligent tools and machines react to fluctuations and can be
analyzed and serviced online. When new technologies have been
proven to be reliable and secure in one area, we roll out their
implementation in other areas. However, manufacturing under
Industry 4.0 cannot be more expensive: it must help to reduce
capital expenditures and ongoing costs. Motivated and well-qualified employees are also the key to success in the age of digital
production. There will be an increasing focus on skilled jobs, e. g.
machine monitoring and trouble-shooting, maintenance and
repair, programming and start-up control, as well as planning
and communications.
Our sales specialists are taking advantage of the opportunities offered by digitization and are bringing car dealerships
back to city centers with the virtual showroom. Audi City has already opened its doors in Berlin, Beijing and London. Innovative
media technology is used to show visitors the entire Audi range:
they can view a realistic, almost life-size digital depiction of the
vehicles on high-end floor-to-ceiling screens a completely new
brand experience.
Digitization is resulting in an unprecedented commercial and
technological trend: the share of electrical components in vehicles
is considerably higher today than it was only a few years ago,
and this shift is set to continue. In cars, digitization makes connectivity possible. It mainly serves to reduce fuel consumption
and emissions, but also to increase safety, comfort and driving
pleasure. Car-to-x communication, which is due to be launched in
the future, comprises car-to-car communication (i.e. the networking of vehicles with each other) on the one hand, and
car-to-infrastructure communication (the networking of vehicles
with drivers own devices, traffic infrastructure, the Internet and
elements in the surrounding environment) on the other. This will
use a wireless L A N standard developed jointly by automotive

TECHNOLOGY SPECIAL

Today is digital

manufacturers. The local network will cover all devices transmitting or receiving data within a range of several hundred
meters. In contrast to a server-based system, the vehicle only communicates with other vehicles and infrastructure elements that
are located in its immediate vicinity.
The main focus of car-to-car communication is on improving
safety. For example, communication between vehicles makes sure
that the driver is warned in good time about the tail end of a traffic
jam. The driver can also be notified about the location of an emergency vehicle and its direction of travel. This can enable a rescue
lane to be formed earlier. In addition, the drivers vehicle can relay
information to the surrounding area about breakdowns, accidents, or critical road conditions. If a vehicle in front brakes unusually hard, this information is relayed to the vehicles behind
via an electronic brake light, enabling the drivers to adjust their
speed and shortening the time taken to react.

C A R T O X CO

U N I C AT I O N

Car-to-infrastructure communication uses specially-equipped

traffic lights, roadworks, or other infrastructure elements to
display additional information for drivers so as to constantly improve the traffic flow and improve safety. For example, the vehicle
receives information from a set of traffic lights about when they
will change and uses this to calculate a recommended optimal
speed. Approaching vehicles transmit information such as their
location and speed to the traffic lights, enabling the lights to
change to match the traffic flow. Information about roadworks,
such as their length or the current traffic conditions, is included
in optimal route calculation. The system calculates weather
hazards based on meteorological data from measuring stations
and vehicles. It then relays this to other road users, who can adapt
their driving or route planning accordingly. Further sources of
information tell drivers where to find free spaces in nearby parking lots or warn them of local road closures. If the route passes

close to a tourist attraction, it sends this information to the vehicle

and invites the driver to make a stop.
In parallel to the driver assistance and safety aspects, the increasing interactivity between the vehicle and its occupants adds a
whole new level of comfort. The car is becoming ever more closely
integrated with the communications environment of consumer
electronics, e. g. smartphones and tablets. Online apps are finding
their way into vehicles. The Volkswagen Groups Modular Infotainment System (MIB) forms the basis for this and can be used across
brands and series. After the successful launch of MirrorLink, that
reproduces smartphone content on the vehicles display, in 2014,
Volkswagen is continuing to work on integrating consumer electronics. The Media Control system introduced in the new Passat is
an example of this: the rear passengers can operate all of the key
entertainment functions in comfort via their devices, e. g. surf the
internet or watch movies, and can even send address book entries
and search results to the infotainment system as the navigation
destination. We unveiled a further innovation in a concept car:
videos can be shown on all tablets in the vehicle simultaneously,
irrespective of their physical origin. The soundtrack is not just
audible via headphones, but can be played in sync over the cars
speaker system. Any device that is connected to the vehicles wireless LA N can be used as a source. Taking these opportunities further, the following situation is conceivable in the near future:
while the owner of a plug-in hybrid is taking a shower in the morning, their car has already communicated with the technology in
their house and is charged. It has already switched on the heating
or air conditioning, depending on the weather. The driver leaves
the house and approaches the car, which recognizes them via
their smartphone and opens the door. The seat position is preadjusted, as are the lighting and music. The satellite navigation
system has long since received route information from the traffic
management system or other vehicles, and sends him on a shortcut
to avoid the morning rush hour traffic. The driver has a reminder
in their smartphone calendar to do the shopping, so there is naturally a supermarket along the customized route.
As an automobile manufacture we spare no effort in ensuring
that we do not carelessly lose control over data access where these
new opportunities are concerned. It is of key importance to ensure
that our customers data is kept as safe and secure as possible at
all times. This is the condition for these new opportunities to be
accepted and leveraged. We carefully review which technologies
we can develop in-house, and where we can work together with
qualified partners. As a result, the Volkswagen Group is working
intensively on developing an intelligent and promising alliance
with IT companies, e. g. via the Open Automotive Alliance aimed at
integrating the Android platform in our vehicles.
It is both our intention and our commitment to provide compelling responses to all digitization issues via Future Tracks.
The desire for individual mobility is changing, but it remains uninterrupted and is expanding.

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addition, a decision was made to expand the capacities of the

Yizheng and Ningbo plants by 150,000 vehicles a year each.
In the US market, the Volkswagen Group is systematically
working toward achieving the unit sales goal for 2018 of one million
vehicles and is further expanding its industrial commitment.
Assigning production of the new midsize SUV to the Chattanooga
location marks an important step in this direction. In addition, it
was decided that the long wheelbase Tiguan will be produced in
North America for the US market from 2017.
The growth markets of the ASEAN region are of major importance for the Volkswagen Group. With a population of approximately 600 million and continued rapid economic growth in many
countries, this region offers high potential for demand. The automotive markets in Thailand, Indonesia and Malaysia in particular
are already well developed; they represent the largest vehicle
markets in the region.
Together with our Malaysian partner DRB-Hicom, we have
been locally producing the Passat for the Malaysian market in
Pekan since 2011. The Jetta and Polo models are also assembled at
this location. We are gradually increasing vertical integration at the
factory and are reviewing the addition of other successor models.
In Indonesia, we have been assembling six models for the
Volkswagen Passenger Cars, Audi and Volkswagen Commercial
Vehicles brands locally since 2009, together with our partner
Indomobil. The aim is to further extend our involvement, by
expanding our product portfolio and increasing vertical integration.
Our Ducati brand has been present in Thailand since 2011.
Since the end of 2014, vehicle frames have also been produced and
painted at the production facility in Amphur Pluakdaeng; local
engine assembly has also begun. This additional factory expansion
phase means that six Ducati models are already being produced in
Thailand.
The Volkswagen Group also has a presence in the ASEAN region
with its Scania brand through partnerships. In order to take
advantage of the regions potential and further expand our market
share there, we are examining additional possible alternatives for
local production.

PRODUCTION

In fiscal year 2014, the Volkswagen Group again expanded its

production network and increased its global production volume by
5.0%, exceeding 10 million vehicles for the first time. Productivity
increased by 4.2% year-on-year despite the continuing difficult
conditions in many markets. In the South American market in
particular, declining volumes impacted productivity trends. However, this was offset by the increasing unit sales in China and the
Groups systematic implementation of its production system.
Production 2018 strategy

The vision of our Production 2018 strategy is to build the worlds

most powerful and most fascinating automotive production system.
To make this a reality, four core objectives were defined. In all
Group brands and all regions, a systematic effort was made in fiscal
year 2014 to excite our customers, lift the earnings contribution,
expand production capacities and make production more attractive
to employees. We further developed the 13 challenges that were
defined in 2011 so that we will be able to achieve our goals by 2018,
and are systematically implementing the measures formulated for
each of these challenges. Our strategy ensures that production is
prepared for future demands for the long term, by continually
improving production processes and connecting them across all of
our locations.
Production locations

In November 2014, the Groups latest location in China was opened

with the gearbox plant in Tianjin. The Volkswagen Groups global
production network thus comprised 118 locations at the end of the
reporting period. This figure takes into account a reworked and
standardized numbering system, whereby the increase resulted in
particular from commercial vehicles. At the end of 2014, the production network consisted of 69 passenger car, commercial vehicle
and motorcycle locations as well as 49 powertrain and component
sites.
With 72 locations for vehicle and component production,
Europe remains our most important production region; 29 of these
sites are located in Germany alone. The Asia-Pacific region is
playing an increasingly important role, with 29 locations. The
number of production sites in North America (four) and South
America (nine) remained unchanged in the reporting period. The
Group operates four locations in Africa.
Since the end of 2014, we have been constructing a new plant in
Wrzesnia, Poland, for the Volkswagen Commercial Vehicles brand,
in addition to the existing plant in Poznan. Production of the Crafter
will begin there in the second half of 2016, with an annual capacity
of 100,000 vehicles.
To achieve our ambitious growth objectives for the Chinese
market, the foundations for a new vehicle plant in Qingdao with a
capacity of 300,000 vehicles a year were laid in November 2014. In

New start-ups and production milestones

In 2014, the Volkswagen Group implemented a total of 60 vehicle

start-ups in 32 locations across 16 countries; of these, 21 are new or
successor product start-ups, while the other 39 start-ups were
attributable to derivatives and product upgrades.
In January 2014, production of the new Golf saloon began in
Mexico our third core production location for the new generation
of the bestseller alongside Europe and China; production of the
Golf Estate followed in December. In February, the start of
production of the Golf Sportsvan in Wolfsburg rounded off the Golf
family. Series production of the XL1 also began in February in
Osnabrck. In addition, we extended the vehicle range at the plant

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V E H I C L E P R O D U C T I O N L O C AT I O N S O F T H E VO L K S WAG E N G R O U P

Share of total production 2014 in percent

EUROPE
NORTH AMERICA

39 locations (51%)

ASIA

3 locations (6%)

17 locations (36%)

SOUTH AFRICA

SOUTH AMERICA

4 locations (1%)

6 locations (6%)

millionth Group vehicle rolled off the production line. In just under
15 years, the number of models produced by the Group has thus
doubled (100 million vehicles produced by 1999). At the same time,
the 2.5 millionth vehicle was recorded on the Group-wide MQB
platform. In February, Volkswagen celebrated the two millionth
Tiguan manufactured worldwide. In September, Audi produced its
two millionth SUV from the Q3, Q5 and Q7 family. The five
millionth SEAT Ibiza left the production facilities at the Martorell
location at the end of September. The Volkswagen Group also
celebrated two production anniversaries with both of its Chinese
joint ventures in 2014. FAW-Volkswagen produced its 10 millionth
vehicle and Shanghai-Volkswagen its 12 millionth vehicle since it
was established 30 years ago.

in Foshan, China which started operating in 2013 to include the

Audi A3 Sportback and the Audi A3 Saloon, and at the Ningbo plant
to include the KODA Octavia and the Volkswagen Lamando. In
addition to the e-up in Bratislava, the start-up in Wolfsburg of the
second purely electric series vehicle the e-Golf in March marked
another milestone. In July, Audi began production of the third
generation of the TT in Gyr, Hungary. Another significant event for
the Volkswagen Passenger Cars brand was the production start for
the new generation of the Passat at the Emden plant in August. The
same month saw production of the sixth generation of the KODA
Fabia start in Mlad Boleslav.
In addition to the new start-ups, there was a lot of start-up
activity surrounding gas-powered models for the Volkswagen
Passenger Cars, KODA and SEAT brands, as well as for plug-in
hybrid vehicles for the Volkswagen Passenger Cars, Audi and
Porsche brands.
In the engine and transmission plants, there were over 30 startups in 2014 for new and more efficient powertrains and for
expanding local production. At the end of 2014, the assembly of 1.5 l
diesel engines specially designed for the Indian market began in
Pune; the new assembly line has an annual capacity of 100,000
engines. In the Polkowice plant in Poland, production of engines on
the basis of the new Modular Diesel System began. The Kassel
location has developed a new hybrid transmission and a hybrid
module for the Audi A3 e-tron and the Golf GTE. The opening of the
new gearbox plant in Tianjin means that Volkswagen is now also
able to manufacture next generation direct shift gearboxes in China
for the local market.
The Volkswagen Group again celebrated some important
anniversaries in 2014: at the beginning of October, the 200

Flexibility in production

The modular toolkits allow us to design our production sites to be

flexible. They generate synergy effects that enable us to reduce
capital expenditure and make better use of existing capacities. With
these toolkits we have created the conditions for using the production sites for several brands at the same time, and are implementing these systematically in terms of plant capacity utilization.
For example, the KODA Kvasiny location in the Czech Republic will
also produce a vehicle for the SEAT brand starting in 2016. Of the
40 passenger car locations, 19 are now already multibrand locations.
As the complexity of products increases, a factory must work at
optimal capacity so as to continue manufacturing high-quality products that give customers maximum benefits at competitive prices.
This is all made possible by the standardization of production
processes and operating equipment at an early stage. Consistent
construction and design principles that are clearly defined in the

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We document our ecological measures around the world using a

system-based program. In 2014 for example, there were over 1,500
energy-related and environmental measures to improve production
processes for passenger cars and light commercial vehicles. As a
result, we reduced CO2 emissions by approximately 195,000 t. At the
same time, this exchange of best practices shows that we are
aligning economics with ecology; these measures save us over
30 million per year.
In addition to the Group-wide activities, the brands also established their own frameworks for ecological restructuring that
reflect the specific features of their corporate culture and brand
image. For example, the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles brands are pursuing all ecological
measures related to efficient use of resources and lowering
emissions in production in their holistic Think Blue. Factory.
program. Think Blue. Factory. began in 2011 under the motto
More sustainability less environmental impact and is part of
Think Blue., the Volkswagen Passenger Cars brands holistic initiative promoting ecological sustainability. The KODA brands
GreenFuture initiative is an ambitious program to achieve the
Groups environmental targets; SEAT calls its program ECOMOTIVE
Factory. Audi established a framework for its commitment to the
environment with the ultra strategy, Bentley launched the
Environmental Factory in the reporting period, while Scania
combined its ecological activities under the concept of Ecolution,
with MAN doing the same under its climate strategy.
The following examples from the reporting period demonstrate
the successful implementation of ecological activities in production:
In the Salzgitter plant, a decentralized chip wringer was
installed that will generate annual savings of 400,000. Removing
chips from the coolant-lubricant emulsion directly at the production machines saves transportation and disposal costs for the
emulsions, which are fed back into the machine after the chips
have been separated. A second decentralized system is already
being built at the Salzgitter plant.
In the Chemnitz plant we introduced more precise pump
control for the cooling lubricant filtration system. This measure not
only generates annual savings of 700,000 kWh of energy, but also
around 70,000.
The introduction of new factory ventilation technology at the
Pune location in India could lead to savings of 430 MWh of energy
and 1,500 m3 of water a year. Simulations were carried out at other
production sites, for example with the central factory ventilation
technology, and optimally adapted to the production conditions so
that interactions can already be taken into account in the planning
phase.
At the Polkowice location in Poland, we used energy value
stream design for a connecting rod and thus achieved a quickly
convertible energy efficiency potential of 10%. This corresponds to
annual savings of 39,000.

form of product standards form the basis for this. We introduced

concept consistency to enable single-line production of different
brands at a single production location. This ensures that common
design principles, joining techniques and joining sequences are
applied across the brands development and production areas.
The Groups production system

To help us become the worlds most powerful and most fascinating

automotive production platform, we must optimize and standardize
our production processes. The Groups value driven, synchronous
production system provides us with the necessary methodologies
and instruments for this. Our goal is to establish this Group
production system throughout the world at all brand and regional
locations so as to continually improve for the long term.
We have already made substantial progress toward this. In the
future, we will turn our attention to further strengthening the
Groups production system and increasing its presence. As a first
step in this direction we are measuring the extent to which the
methodologies and instruments are being implemented at the
locations. The target/actual comparisons reveal action areas that
are laid down in a project plan and worked through in a structured
manner in the second step. As a synchronous Company, we are
including all business areas so as to systematically optimize processes.
The increasing volume and complexity of our models and the
size of our production network with its global supplier and customer structures also require maximum performance from logistics.
We will meet the increasingly demanding conditions with our crossbrand logistics concept. This concept will enable us to shape all our
material and information processes for supplying the production
locations and delivering vehicles to our customers even more
efficiently across the Group. In addition to internal processes for
providing materials to the assembly lines, the focus of our logistics
concept is on upstream transportation and logistics processes
between the locations and our suppliers, and the transportation
chain for vehicles from the factory to customers.
Efficient production

We are committed to reducing the Groups five fundamental

environmental indicators by 25% by 2018 compared with 2010.
Production is significantly contributing to our becoming the worlds
most sustainable automobile manufacturer.
We use synergies within the Group to make our production
more ecological. In Group-wide environmental working groups we
discuss strategic issues, prepare action packages, organize efficient
data capture and track the extent to which our goals have been met.
We are also planning activities across the brands to train employees
in the areas of environmental protection and energy efficiency.
Systematically sharing knowledge between the production locations
allows us to benefit from our employees global expertise. Crosslocation analysis teams are developing methods to systematically
reveal potential.

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focused on finding intelligent ways to convert performance into

speed and success not just with more horsepower, but also with
more ideas.
Exclusivity, elegance and power these are the defining
qualities of our Bentley, Bugatti and Lamborghini brands in the
luxury vehicle segments. They round off the Volkswagen Groups
brand diversity in the passenger cars segment.
Volkswagen Commercial Vehicles stands for superior mobility
with its three core values reliability, economy and partnership.
The brand offers a range of different transportation solutions based
on the highest levels of engineering. The vehicles are tailored to
meet the individual transportation needs of customers in retail and
craft businesses, as well as civil authorities and service providers.
Private customers value the brands family-friendly MPVs and
recreational motor homes.
The Swedish Scania brands core values are customer first,
respect for the individual and quality. This successful company
has been manufacturing high-performance trucks and buses
featuring extremely innovative technology for over 100 years. The
brand offers its customers efficient transport solutions backed by
excellent service offerings and financial services.
The core values of the MAN brand and its key success factors
are reliability, innovation, dynamic strength and openness. As well
as trucks and buses, the company is a leading manufacturer of
diesel engines, turbomachinery, turnkey power plants and special
gear units.
Ducati is one of the most famous manufacturers of premium
motorcycles. Its emotionally charged products thrill the Italian
brands customers with their premium quality craftsmanship,
uncompromising performance and challenging dynamics.
Volkswagen Financial Services provides the Volkswagen
Groups private and business customers with the right products and
services across all vehicle segments. It is the key to mobility for
customers around the world.

Energy supplies to our production sites are increasingly generating

lower emissions. By using geothermal energy at the Gyr location in
Hungary, the Audi brand reduces CO2 emissions by 23,000 t a
year. Electrical energy from renewable sources fuels 50% of the
KODA plant in Mlad Boleslav, reducing annual CO2 emissions by
200,000 t.
SALES AND MARKETI NG

The Volkswagen Groups unique product portfolio comprises twelve

successful brands, including innovative financial services, that
excite millions of customers worldwide, year in and year out. We
further strengthened these brands unique features and consolidated our excellent market position in 2014.
Brand diversity in the Volkswagen Group

Volkswagen Das Auto. More than ever, the goal of the Volkswagen Passenger Cars brand is to offer innovative automobiles of
lasting value based on consistently responsible business policies.
Customers all over the world associate products from the Volkswagen Passenger Cars brand with quality, reliability and German
engineering skill. Brand management always focuses on the wishes
of our customers. They are the starting point for developing
innovations that are driven by demand while remaining affordable.
This is our competitive advantage: based on this, the Volkswagen
Passenger Cars brand aims to become the most innovative volume
manufacturer with the best quality in each class in the medium to
long term.
Vorsprung durch Technik is not just a slogan for the Audi
brand; it is an active brand promise that is delivered throughout the
world, making Audi one of the most highly desired brands in the
premium segment. Its objective is to become the most successful
brand in this segment. To achieve this, Audi relies heavily on its
progressive image, high-value products and sporty character. Its
innovative engineering solutions and emotional design language
have won it numerous honors and awards.
Intelligent concepts and a good value proposition have made
KODA a very successful brand in Europe and China. The Simply
Clever slogan combines forward-looking functionality with an
impressive space concept that is technically simple but offers
sophisticated and practical features.
Design, passion, quality and constant updating these are the
distinctive characteristics of the youthful, dynamic Spanish SEAT
brand that is aiming for stronger growth, particularly in Europe.
SEATs goal of combining technological precision and superb
engineering artistry with emotional design is expressed in its
TECHNOLOGY TO ENJOY slogan.
Sports car manufacturer Porsches brand values are a combination of opposites: exclusivity and acceptance, tradition and
innovation, performance and suitability for daily use, design and
functionality. Porsches philosophy is to achieve maximum output
from minimum input. From the very beginning, Porsche has

Customer satisfaction and customer loyalty

The Volkswagen Groups sales activities focus consistently on

turning our customers into even more satisfied customers this is
our top priority. Thanks to the measures and process improvements
we introduced, we were able to further increase satisfaction
amongst our vehicle buyers, after-sales customers and dealership
partners in the reporting period.
The Groups brands regularly calculate customer satisfaction
levels, focusing on products and services. They derive new measures from the survey results to achieve even greater customer
satisfaction.
Measured in terms of customer satisfaction with their products,
the Audi and Porsche brands are among the leaders in the core
European markets in comparison to other Group brands and their
competitors. The other brands in the Group also score higher than
competing brands.

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When selecting products and partners, we take great care to obtain

the greatest possible customer benefits and generate maximum
synergies for the Group, while, at the same time, preserving the
identities of our brands.
We also provided additional sales and after-sales services to our
electric vehicle customers.

Customers are loyal to our brands and trust them when we meet, or
better still, exceed their expectations of our products and services.
The extent of this trust is impressively illustrated by our loyalty
figures, which we measure on a regular basis. The Volkswagen
Passenger Cars brand, for example, has maintained a high level of
customer loyalty in its core European markets for several years in a
row and raised it even higher in 2014. The loyalty of Audi, Porsche
and KODA customers has likewise kept these brands in the upper
rankings in a competitive comparison for a number of years.

Used car business

The used car business is the fourth key source of income in our
dealer organization after the new car, services and parts businesses.
We ensure the profitability of the used car business by providing
efficient processes and systems and highly qualified employees, as
well as clear guidelines and management tools.
We focus on professional used car management at both the
wholesale and retail levels. Customer-centric financial services are
the basis for attractive product packages. In addition, we further
strengthened our proprietary used car brands and rolled them out
internationally so as to ensure that our offerings also meet customer
needs. Cross-brand activities enable us to implement examples of
best practice throughout the Group, benefiting from economies of
scale and leveraging synergies.
We established and standardized processes for used cars at all
distribution levels, enhanced and increasingly harmonized the
underlying IT infrastructure, and introduced uniform management
performance indicators.
To ensure long-term success in our used car business, we attach
considerable importance to stable residual values and this is also
in the interest of our customers. We have set up system-based
reporting functions for this purpose.

Structure of Group sales

The Volkswagen Groups multibrand structure helps promote the

independence of its brands. Nevertheless, we use cross-brand sales
activities to increase sales volumes and market share and increase
sales efficiency, while cutting costs and improving earnings contributions.
In the reporting period, we strengthened dealer profitability in
particular. This was achieved firstly with cost-cutting programs and
secondly by expanding the business volume for each dealer. Our
distribution network strategy calls for us to work with strong
partners and leverage the potential of all business fields, and this,
as well as the difficult economic situation in some countries, led us
to restructure the distribution network. The focus was on a close
working relationship with dealers and their profitability. We use
Group companies to manage our wholesale business in over 20
markets. A central department makes sales activities more transparent and more profitable, as well as creating synergies between
the different brands. This allows wholesale companies to learn
quickly and efficiently from the Group-wide benchmarking process
and from the best practices adopted by individual firms. The central
department is instrumental in helping us achieve the goals laid
down in the Groups Strategy 2018.

After-sales and service

In after-sales, the timely provision of original parts and individual

service are instrumental in ensuring passenger car customer
satisfaction. Globally, our service centers do not just guarantee high
product quality above all they offer tailored service solutions for
customers of all vehicle classes across all Group brands.
Across the world, our commercial vehicles business also stands
for products of the highest quality, along with strong customer
relationships. Fuel efficiency, maintenance and operating costs, the
residual resale value of vehicles, and the purchase price these are
critical buying criteria for our customers, in addition to availability.
We are continually extending both our after-sales activity and our
comprehensive service offering, and these play an important role in
increasing customer satisfaction.
Scania is adding services to its range of trucks, buses and
engines that guarantee fuel efficiency, reliability and good vehicle
availability. These also include the Scania Rent Truck & Trailer
service that helps to overcome short-term fleet capacity problems.

Fleet customer business further expanded

Our relationships with fleet customers are often of a long-term

nature. This customer group guarantees more stable vehicle sales
than in the private customer segment in a volatile environment. The
Volkswagen Group has an established base of business fleet
customers in Germany and the rest of Europe in particular. Our
extensive product offering enables us to satisfy their individual
mobility needs from a single source. This allowed us to further
consolidate, and in some cases even extend, our well established
position in Europe in 2014.
The e-mobility challenge for Group sales

The Volkswagen Groups e-mobility strategy covers the development

of customer-centric products and business models to complement
its range of electric vehicles.

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quality targets and standards and monitors compliance with them.

In addition, it identifies the cause of any faults and manages the
process for removing them.

Scania Parts and the Genuine Parts Warranty ensure that most
replacement parts are available within 24 hours throughout most of
Europe. Drive behavior is the key factor affecting operating
efficiency, wear and tear of tires and parts, as well as traffic safety.
Drivers receive advanced training in even more efficient and safer
driving techniques at the Scania Academy. Scanias workshop
service and service contracts offer customers a high degree of safety
in addition to consistently high quality.
The MAN brand also offers service packages tailored to meet
customer requirements to help them reduce their overall vehicle
operating costs. These service packages include maintenance and
repair contracts, for example, in conjunction with MANs proactive
maintenance management service, MAN ServiceCare. Active data
exchange between vehicles, customers and the MAN service points
takes place via the MAN TeleMatics integrated onboard module.
MAN ServiceCare enables operators to schedule maintenance work
at the most suitable times, increasing the availability of their
vehicles.

Focus on customer wishes

Volkswagen Groups worldwide growth also presents additional

challenges for quality assurance. For example, new vehicle projects
in individual regions around the world are subject to the widest
variety of customer desires. In light of this, identifying specific
regional factors and prioritizing them is an important task so that
they can then be reflected appropriately in new products and in the
production of established vehicle models. Critical factors include
the available fuel quality, road conditions, traffic density, countryspecific usage patterns and not least local legislation. Outside of
Europe, the main focus of Quality Assurance is on conditions in the
BRIC markets.
We mainly use market studies and customer surveys to capture
the wide variety of customer requirements.

Dealers commitment to sustainability

Product and supplier quality

Think Blue. is the Volkswagen Passenger Cars brands ecological

sustainability policy. It addresses the question of how individual
mobility can be reconciled with sustainable practices, among other
things. Think Blue. is contributing to the Volkswagen Groups
objective of being the most sustainable automobile manufacturer in
the world by 2018.
Integrating Think Blue. into our business processes continued
apace in 2014. The Volkswagen brand has set itself the goal of
reducing CO2 emissions at the Volkswagen dealerships in Germany
by 25% by the year 2020. Based on the experiences of German
dealers, the global Think Blue. dealer initiative has set itself the
goal of encouraging over half of all dealers in our focus markets to
take part.

In the reporting period, the large number of product start-ups

made high demands on Quality Assurance. We maintained the high
quality of the previous years for the Group. Our suppliers also made
important contributions to this. We expect sustainable practices
from them as well as delivering the highest product quality and
reliability of supply.
Innovative technologies that are installed in new vehicles must
be established in the markets without any problems. This is why
Quality Assurance follows and analyzes these vehicle projects long
before customers experience a new product. The aim is to make the
product even better and even more reliable, while at the same time
successfully implementing as many customer wishes as possible in
the new projects and continuing to factor in regional requirements
and needs.
In 2014, we continued to standardize our fault removal process,
which now enables us to react even faster and better to any vehicle
problems to the benefit of our customers. This increases customer
satisfaction and at the same time reduces warranty and ex gratia
repair costs for Volkswagen.

QUALITY ASSU RA NC E

The quality of our products and services plays a crucial role in

maintaining customer satisfaction across the world. Customers are
particularly satisfied and loyal when their expectations of a product
or service are met or even exceeded. Reliability, appeal and service
determine quality as it is perceived by the customer throughout the
entire product experience. Our objective is to surprise and excite
our customers in all these areas and thus win them over with our
outstanding quality. We continued to improve our high level of
quality in 2014, thus contributing to growth and to increasing the
value of the Volkswagen Group.
Volkswagen Groups Quality Assurance consistently focuses on
our customers wishes and integrates them into product requirements. It also ensures that the company, as the manufacturer, and
its products comply with all legal requirements. It defines high

Service quality

We also aim to improve the quality of our service offerings worldwide. In 2014, we therefore further optimized the warranty and ex
gratia repair instruments. As the direct interface with customers, the dealership operation offers additional starting points: we
can identify at an early stage any problems that may be revealed in
the emotional moment of vehicle handover and correct them
systematically.

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E M P L OY E E S

Dual vocational training

Excellent performance, the success that comes from it and participation in its rewards are at the heart of Volkswagens human
resources strategy. Our teams must draw on the specialist
knowledge and abilities of every member if they are to perform at
their peak, create top-quality products and ensure our business
success.
As of December 31, 2014, the Volkswagen Group, including the
Chinese joint ventures, employed 592,586 people, 3.5% more than
at the end of fiscal year 2013. Significant factors in this increase
were the volume-related expansion of the workforce in the growth
markets, in particular in China, and the recruitment of specialists
and experts in Germany, among other places. Volkswagen AG,
Volkswagen Sachsen GmbH, AUDI AG and Volkswagen Financial
Services AG hired a total of 6,926 temporary employees on a permanent basis in 2014. MAN and Porsche took 1,205 temporary
employees into their core workforce in Germany.
The ratio of Group employees in Germany to those abroad
remained virtually unchanged in the past year. At the 2014
reporting date, 45.7% were employed in Germany.

Dual vocational training, where theory and practice are closely

interwoven, provides the crucial basis enabling top-performing
teams to meet the Volkswagen Groups high standards of expertise
and quality. Vocational education and training are offered based on
the expertise required within each vocational group. The vocational
groups own experts pass on the knowledge accumulated in the
group to the trainees.
The Volkswagen Group has introduced dual vocational training
at many of its international locations in the past few years. As of
December 31, 2014, the Volkswagen Group had trained 18,459
vocational trainees worldwide in approximately 60 trades and 50
dual study programs. Over three-quarters of all the Groups
vocational trainees now learn their trade through dual vocational
training.
In October 2014, the Volkswagen Group further extended its
collaboration with the Chinese education ministry on vocational
training, which began in 2012. In partnership with its Chinese joint
ventures FAW-Volkswagen and Shanghai-Volkswagen, Volkswagen
will support the development of more teacher training centers, with
a view to enhancing vocational training in China. Better qualified
teachers and trainers will substantially strengthen vocational
trainees specialist skills, particularly those required in workplace
operations.
On completing their vocational training, our young employees
have the basic skills required for their trade. They develop their
professional skills further during their first specialist assignment
following their training and receive support from more experienced
experts. Particularly talented young specialists are supported in
talent groups. The highest-achieving 10% of trainees in each year
group are admitted to this two-year development and training program.
After completing their vocational training, young people at the
start of their career have the opportunity to take part in the
Wanderjahre (Years Abroad) program, spending twelve months at
one of the Groups international locations. In the reporting period,
37 Volkswagen Group locations in 19 countries took part in this
development program, including for the first time SantAgata
Bolognese (Lamborghini). In 2014, 51 employees from Germany
and eleven from six other countries embarked on their Volkswagen
Group Years Abroad program.

EMPLOYEES BY CONTINENT

in percent, as of December 31, 2014

Germany
Rest of Europe
America
Africa
Asia/Australia

15 %
1%
10 %

46 %

28 %

Vocational group qualifications

Training programs are organized in the Volkswagen Group on

the basis of vocational groups. A vocational group includes all
employees whose work activities are based on similar technical
skills and who need related expertise in order to perform their job.
The vocational group is the home base for employees in a particular
specialism, encompassing everyone from vocational trainees,
young specialists, trainees, technical specialists, to experts and
Volkswagens top experts. Members develop their expertise in these
groups by deepening their skills and knowledge and learning from
more experienced colleagues.

Developing university graduates

Volkswagen uses a differentiated approach to support its young

academic talent: the Student Talent Bank and the Academic Talent
Pool.
Through the Student Talent Bank, Volkswagen seeks to develop
particularly high-achieving students in both functional and
interdisciplinary areas. The aim here is to persuade former interns
to join the Company and, by inviting them to specialist lectures,
seminars, or visits, for example, to give them the best possible
preparation for entry into the world of Volkswagen.

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already been standardized across all the brands in Germany. The

Volkswagen brand alone offered over 190 training programs
leading to qualifications for executives, master craftsmen and
managers, as well as assessment centers for prospective managers,
in 2014. At an international level, the Volkswagen Group Academy
ran a total of approximately 60 training programs for executives,
master craftsmen and managers, as well as assessment centers for
management. These took place in Poland, the Czech Republic, the
UK, Spain, Portugal, the USA, Argentina, Brazil, South Africa, India,
China and Russia.

Talented young high potentials are added to the Academic Talent

Pool just before they complete their degree or doctorate. This puts
selected high potentials on the radar screen at the Company,
allowing them to be considered for a qualified entry-level position
in one of the functional areas.
Volkswagen offers the StartUp Direct trainee program to give
graduates the best possible start in the Company. Over a two-year
period, participants in the program not only work in their own
department and familiarize themselves with the Company, but also
attend supplementary training seminars. Alternatively, university
graduates interested in working internationally can take part in the
StartUp Cross program; over a period of 18 months, trainees get to
know the world of Volkswagen through assignments in a variety of
specialist areas along the value chain and, in addition, they broaden
their expertise at different Group locations at home and abroad.
Over 3,100 trainees have gained their first experience of Volkswagen in one of these two programs since 2008. In the reporting
period alone, Volkswagen AG employed a total of 330 university
graduates, around 30% of whom are women.
The Volkswagen Groups StartUp Europe trainee program has
offered young engineers from Southern Europe an opportunity to
gain international work experience since 2012. This Volkswagen
program is designed to attract international talent and was initially
targeted at university graduates from Spain and Portugal. The
program was extended to Italy in 2014. The graduates start off in the
relevant company abroad before moving to a Group company in
Germany for up to 21 months. They may be offered permanent
positions after successful completion of the two-year program 30
promising young engineers were taken on in 2014.

Professional development at university level

Within the Volkswagen Group Academy, the AutoUni ensures the

availability of specialized academic knowledge. Nine institutes work
in conjunction with the relevant vocational group academies and
partner universities to design development programs for the
Groups experts and top specialists. In addition, a wide variety of
professional development formats are designed in order to
disseminate the Groups internal wealth of knowledge as well as
that of university professors and business experts, and to generate
new academic insights.
The AutoUni cooperates with internationally renowned
universities, institutes and research centers on a variety of research
projects, dissertations and theses. At the end of 2014, more than
500 doctoral students were engaged in research at the various
Volkswagen Group companies in Germany, investigating ambitious,
Company-related topics.
The AutoUni also provides advice and support to the Volkswagen Group in identifying suitable academic research and
education partners.

Professional development, leadership and management programs

The Volkswagen Group Academy offers a broad range of qualification routes for specialists and experts. These include personal
development programs in addition to general professional
development programs and training within the vocational groups.
The dual training principle is of key importance here because the
best way to continue systematically developing throughout a career
is by closely combining theoretical learning with practical
application.
At the start of 2014, the Volkswagen Passenger Cars, Audi,
KODA, SEAT, Porsche and MAN brands agreed uniform personnel
standards for the professional development of future executives and
managers in the Group.
A large number of the development programs and selection
processes for executives, master craftsmen and managers have

Advancement of women, family-friendly HR policies

Volkswagens corporate culture places a very high value on both job

and family. For Volkswagen, family-friendly human resources
policies are a key success factor along the road to becoming one of
the worlds leading employers. The Group proposed individual
goals to raise the proportion of women at Volkswagen in Germany
for the long term as part of a voluntary commitment.
A key instrument is the quota for the university graduates we
hire. Volkswagen hires the years best university graduates in the
necessary fields and takes into account the proportion of female
graduates in the relevant subject areas. Averaged across all fields of
study relevant to Volkswagen, the individual ratios produce an
overall goal of 30% women among the university graduates hired.

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Volkswagen has offered participation in the Lower Saxony

Technikum at its locations in Lower Saxony since 2012. Female
high school graduates complete an internship in a specialist
technical area and attend university lectures in parallel. In the past
two years, 88% of the Volkswagen Technikum participants, 45
women in total, have opted to study technical subjects and nine of
them are following a dual study program at Volkswagen.
In addition to hiring and supporting talented female employees,
Volkswagen is attempting to systematically improve its employees
work/life balance. For example, Volkswagen offers a high level of
working time flexibility, a range of part-time and shift models, and
ways of easing the transition back into the workforce for employees
on parental leave. Teleworking and the associated use of new IT and
communications technologies allow employees to find their own
individual work/life balance.
Another step toward becoming a family-friendly company is the
constant expansion of a range of childcare options. The Volkswagen
Groups experience at home and abroad with near-site childcare
has been positive at Volkswagen Financial Services AG or at the
Volkswagen Group of America location in Chattanooga, for example.
Childcare is also available during school vacations at all the Volkswagen Passenger Cars, Audi, Porsche and Volkswagen Commercial
Vehicles locations in Germany.

P R O P O RT I O N O F W O M E N V O L K SWA G E N G R O U P I N G E R M A N Y *

as of December 31, 2014

2014

2013

Total vocational trainees

28.2

27.4

Industrial vocational trainees

21.8

21.4

Commercial vocational trainees

56.2

53.2

Students in traineeship schemes

32.1

31.4

Total management

10.2

9.8

Management

11.7

11.2

Senior management

8.3

7.9

Top management

5.7

4.8

* Excluding Scania, MAN and Porsche.

Volkswagen aims to attract female students at an early stage: it uses

its Germany-wide Woman DrivING Award and the Woman Experience Day to focus on female engineering and computer science
students and graduates, so as to recruit them for technical positions
at Volkswagen.
This increased proportion of qualified women joining the
Company will enable us to steadily lift the proportion of female
executives in the coming years. The Volkswagen Group is aiming to
have 30% women at all levels of the management hierarchy in
Germany in the long term. In line with this, the proportion of
women increased there from 9.8% in the previous year to 10.2% in
2014. The first cross-brand Management Mentoring Program,
designed to support women on the way to management positions,
was launched in the reporting period, with 42 participants from the
Volkswagen Group in Germany.
In addition, Volkswagen intends to raise the proportion of
women among its skilled workers and master-level workers in Germany to 10%. In 2014, 25 women at Volkswagen in Germany took
part in the master craftswoman mentoring program. Audi also
supports and encourages well-qualified women at master and
technician levels in their professional development towards executive level.
Volkswagen specifically targets recruitment of talented women
by arranging special work experience days for young women in
order to increase the proportion of female vocational trainees in the
industrial and technical area from 21.8% to 30% in 2014. The aim
of these events is to make training in industrial and technical trades
more accessible for girls and to support them in their career
choices. The Volkswagen Passenger Cars, Audi, Porsche, Volkswagen Commercial Vehicles, MAN and Volkswagen Financial
Services brands have participated in the national Girls Day in
Germany for years and offered 2,328 schoolgirls in the reporting
period a behind-the-scenes look into careers in the automotive
industry.

Performance incentives and bonus arrangements

Systematically encouraging and recognizing achievements and

switching to remuneration systems that allow employees to share in
the Companys success for the long term are important components
of our human resources strategy. Universal and uniform criteria for
skills development and performance evaluation have been in place
at Volkswagen AG since 2010. These apply to the entire workforce
from vocational trainees to senior executives. The criteria are
underpinned by concrete incentive systems in the remuneration
structure.
Volkswagen AGs employees covered by collective pay agreements have a remuneration system that comprises three key elements:
> basic pay in the form of a competitive monthly salary;
> a performance-related pay component that recognizes the
achievements of each individual employee; and
> the right to a bonus arrangement anchored in the collective pay
agreements.
This three-tier remuneration system has proven its worth as a tool
for the workforce to participate in the Companys success.
At the same time, it helps recognize individual achievements
and maintain competitiveness. For this reason, it is increasingly
becoming standard practice in the Group at Audi and KODA, as
well as at Volkswagen Group of Americas Chattanooga location and
Volkswagen de Mxico, among other places.

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AGE STRUCTURE IN YEARS OF VOLKSWAGEN GROUP EMPLOYEES

as of December 31, 2014; in percent

Men
Women

< 20

1.9
0.5

2029

19.8
3.8

3039

22.4
4.7

4049

22.0
4.1

5059

16.0
2.2

60 +

2.4
0.3

ing continuous process and structure optimization in the areas of

productivity and quality, ergonomics, leadership and teamwork
helps to ensure these. As in the previous year, a particular focus for
the Volkswagen Way in the reporting period was on optimizing
overarching workflows. In addition to the Volkswagen Way, a
uniform Group-wide production system is used for all brands
during production.
Employees use their creativity, knowledge and initiative to take
responsibility for process and product improvement under the
Ideas Management program. Employees in Germany have submitted over two million ideas since 1949 using the former
suggestion scheme and todays Ideas Management program, saving
nearly 3.2 billion at the Volkswagen AG and Volkswagen Sachsen
GmbH German locations. Ideas management is an important
leadership and motivational instrument for line supervisors. It also
contributes to improving health and safety in the Volkswagen
workplace and to implementing our targets for reducing energy and
water consumption, waste, solvents and CO2 emissions.

Employee participation

Employees can actively help shape the Company by participating in

the opinion survey. This uniform, Group-wide employee survey
regularly gathers information about employee satisfaction. Following the survey, the results are discussed together by supervisors and
employees. Complaints and problems are addressed, as are
suggestions on how to better organize work. The measures agreed
are then implemented before the next survey. The opinion survey
was conducted for the seventh time in 2014. A total of 150 locations
and companies in 44 countries were included in the survey. More
than 440,000 of the over 490,000 employees invited to participate
took part, giving a participation rate of 89% (89%). The sentiment
rating is a key parameter for the opinion survey, in addition to the
level of employee participation. In 2014, this was 79 (79) out of 100.
The Volkswagen Way has been a successful tool for involving
Volkswagen AGs workforce in improving the Companys efficiency
since 2007. It aims to both increase competitiveness and safeguard
employment. A continuous improvement process aimed at achiev-

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production are already taken into account in the planning and

design stages of vehicle models. The common objective is to
combine ergonomically state-of-the-art workplaces and innovative
work processes, using a mix of science and practical experience.
The deployment of occupational assistants on the production lines
means that employees are able to receive advice and guidance
directly at their workplace about how to implement their workflows
more ergonomically.
Using the Group occupational safety management system, all
Group companies covered by it analyzed their existing occupational
safety organizations and processes. The results are available
throughout the Group in a central database system. This includes
the systematic communication of examples of good practice
identified in the Volkswagen Group.

I D E A S M A N A G E M E N T I N T H E V O L K SWA G E N G R O U P *

as of December 31, 2014

2014

2013

Ideas suggested

463,042

532,053

Suggestions implemented

306,432

412,795

Savings in million

324.4

312.5

Bonuses in million

35.2

34.9

* 31 (31) participating production locations.

Preventive healthcare and occupational safety

Volkswagens holistic healthcare management system extends far

beyond traditional preventive healthcare and occupational safety; it
also covers aspects of work organization, ergonomics, prevention,
integration and rehabilitation, leadership and prospects for all
individuals.
The check-ups established as standard at the German locations
help to maintain and improve employees health, fitness and performance. The check-up is a free, comprehensive medical examination for all employees, who value the high diagnostic quality on offer.
These check-ups have now been introduced successfully at
international locations, including Volkswagen in Brazil, Mexico,
Argentina and South Africa as well as at the Audi, KODA, SEAT and
MAN brands. The range of preventive and fitness options available
following the check-ups was expanded and made more systematic
in 2014, and their quality has been enhanced.
Healthy eating concepts and a wide variety of sports and leisure
activities from the weight loss and healthy eating campaign at
Volkswagen in South Africa to internal running events at MAN in
Munich complement the holistic approach to health management
in the Volkswagen Group. A health campaign was launched at
Bentley in 2014 with the aim of promoting healthy lifestyles. The
BeFit program consists of four components: Weight and Nutrition,
Stress and Sleep, a corporate step challenge (counting steps) and a
back pain prevention program, as well as workshops and a targeted
intranet campaign.
At the same time, Volkswagen uses improvements along the
entire product development process to guarantee that the quality of
workplaces and the strains on employees that arise as a result of

140

Social benefits

Volkswagen AG tops up the benefits provided by social insurance

institutions, such as sick pay, and supports dependents when an
employee dies. All Volkswagen AG employees are also insured by a
group accident insurance policy against accidents resulting in
death or disability. Volkswagen AG also grants short-term loans to
employees in exceptional cases of economic hardship.
Employees in the Group companies in Germany and abroad
enjoy additional benefits. Depending on the location, these include
transportation and subsistence allowances, affordable housing,
monthly childcare allowances as well as subsidies towards selected
leisure activities. Additional preventive healthcare services or
supplementary pension insurances round off this offering on a
location-specific basis.
Volkswagen AG and its brand companies and subsidiaries
operate an occupational pension system, making an important
contribution to their employees retirement income. In addition to
the components funded by the employer, the direct pension
commitment offers employees the opportunity to provide for their
own retirement income through deferred compensation. Direct
insurance is another opportunity for employees to provide for their
own retirement income through deferred compensation.
Volkswagen AGs Time Asset is an instrument that gives staff the
opportunity to retire earlier. Since 1998, employees have been able
to make contributions from their gross salary and time credits. The
accumulated Time Asset credits can be used for paid early retirement.

G R O U P M A N A G E M E N T R E P O RT

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E M P L OY E E B R E A K D O W N 1

as of December 31, 2014

2014

2013

2012

2011

2010

18,459

17,703

16,714

15,021

10,545

13,577

13,174

12,508

11,249

7,799

4,882

4,529

4,206

3,772

2,746

7,129

9,501

7,804

4,488

4,778

Groups active employees

566,998

545,596

525,245

482,447

384,058

Employees

592,586

572,800

549,763

501,956

399,381

Europe

438,631

424,964

410,427

378,030

290,159

America

59,790

61,796

63,193

58,072

54,571

6,330

6,356

6,461

6,602

6,546

86,752

78,672

68,704

58,540

47,607

Vocational trainees in the Group

Industrial
Commercial
Passive stage of partial retirement

Africa
Asia

1,083

1,012

978

712

498

Percentage of female employees in the Group

Australia

15.7

15.5

15.2

14.7

14.2

Female graduate recruits2 (in %)

30.9

35.3

29.2

30.5

23.6

1 Including the Chinese joint venture companies.

2 Volkswagen AG

The growing convergence of production and IT is opening up new

opportunities. Big data processes allow machine faults to be
analyzed and corrected at an early stage. Big data makes it possible
to analyze and evaluate data volumes that are too vast and too
complex to be processed using manual or conventional methods.
Volkswagens factory planners can use the digital factory to
virtually walk through the buildings and test out their plans long
before the ground is broken. The Group-wide Fertigungs-,
Informations- und Steuerungssystem (FIS Production, Information and Control System) ensures that the right vehicle is built at
the right time on the production line. This results in even more
efficient, more resource-friendly, even faster production processes.
More and more, customers expect to find innovative communications technology and IT in the Volkswagen Groups vehicles
such as networking the vehicle to the occupants own devices or to
the Internet. Mobile online services, in the new Passat for example,
have been greatly extended to meet these customer requirements,
setting new standards in their respective vehicle segments.
Data security is a key concern for the Groups IT function.
Volkswagen therefore insists on the highest security standards
when transferring data between vehicles and data centers. In
addition, systematic staff training and the use of state-of-the-art
technical tools minimize the risk of unauthorized access to
sensitive data.

I N F O R M AT I O N T E C H N O L O G Y ( I T )

Increasing digitization and networking, end-to-end support for

business processes and the development of new locations
continually pose new challenges to the Groups IT functions. A wellequipped, state-of-the-art infrastructure is essential in order to
master them.
Ensuring that new developments in the application landscape
are implemented efficiently at the corporate locations and incorporated into business processes and the sales network is just as vital.
The IT staff are responsible not only for developing the systems at all
of the Volkswagen Groups brands, but also for supporting users in
technical development, production and sales. This is how
applications tailored to the exact needs of the users are created.
Volkswagens Data Lab is addressing the trend towards
digitization. Its core task is to develop prototypes for innovative IT
solutions in order to provide users with tailored products and
offerings. This entails road-testing new technologies for analyzing
large data volumes (big data) and networking vehicles with their
environment. The Data Labs approach to working is highly
networked. It cooperates with the Groups specialist areas such as
sales, as well as with external partners. Research institutes
including the Ludwig-Maximilians-Universitt in Munich and the
German Artificial Intelligence Research Center in Kaiserslautern,
together with leading technology companies and start-ups all
contribute their knowledge.

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EN IRON

ENT SPECIAL

On the way to becoming the ecological leader

o ogi

oming

The Volkswagen Groups environmental strategy

Stakeholders have increasingly high expectations of companies,

particularly with regard to environmental issues. Global megatrends such as climate change, demand for resources, demographic change and increasing urbanization are all contributing
to this trend. The Volkswagen Group also faces these challenges,
for example in the form of
political backing for tougher environmental standards (global
legislation on CO2 emissions, for example),
analysts research reports and investors decisions that are increasingly taking into account companies environmental and
sustainability performance,
ever decreasing resources, and
growing expectations from our business and private customers
regarding the environmental features and efficiency of our
products.
With its long history of commitment to protecting the environment, the Volkswagen Group is better equipped than most companies to meet these challenges: The first environmental protection
department was established as far back as 1971 and environmental management officers at Volkswagens European locations have

GROUP EN IRON

E N TA L S T R AT E G Y

GROU P EN I RON ENTAL

STR ATEGY
Vision: the Volkswagen
Group will be the
leading automotive group
in ecological terms by 2018

No. 1 for
intelligent
mobility
Anchored
throughout
the Company

No. 1 for
lifecycle-wide
resource
conservation

Leader in
environmentally friendly
products

been meeting regularly to discuss topical issues since 1976. Since

1998, the Group has held a succession of conferences on environmental issues with participants from all over the world. As one of
the largest automobile manufacturers in the world, we are very
aware of our special responsibility and have set ourselves ambitious targets for environmental protection.
The Group environmental strategy, which was adopted by the
Group Board of Management, provides the framework for implementing our vision of also being the automotive industry leader
in ecological terms by 2018. Our commitment centers on four key
target areas:
Number one for intelligent mobility
The concept of intelligent mobility brings together peoples desire for mobility and comfort, protection of the environment and
reducing traffic inefficiencies. The concept is based on the efficient interplay of people, infrastructure, technologies and
means of transport.
Number one for resource conservation across the lifecycle
We take account of our products environmental footprint
across their entire lifecycle. Our central concern in taking this
holistic approach is to protect the environment and in particular to conserve finite resources. The steps we have taken focus
on efficient product and process design, the use of innovative
environmental technologies and sustainable energy supplies.
A leading manufacturer of environmentally friendly products
Our products combine state-of-the-art technology, comfort and
safety, low fuel consumption and lower CO2 emissions with the
long-term goal of zero-carbon mobility.
Environmental awareness anchored throughout the Company
The Volkswagen Groups employees are the driving force behind its environmental strategy. They are well informed, well
qualified and operate in an ecologically responsible manner.
Our great strength is that, in exchanging best practice, we pool
our employees knowledge across brands and regions and leverage this across the entire Group.

EN IRON

ENT SPECIAL

On the way to becoming the ecological leader

Through our Group environmental strategy, we make sure that

environmental factors are increasingly taken into account in our
corporate decision making. An organizational structure comprising six modules product planning and development, suppliers,
logistics, production, sales and marketing and recycling ensures
that all business areas along the value chain are included.
The management module entitled The Company provides
an additional overarching element addressing interconnected
issues.
We work together to reduce the environmental impact of
our production processes and products. We have set ourselves
ambitious targets and identified measures and produced workpackages for every business area. It is extremely important for us to
be able to measure the results. We have established Green KPIs
(key performance indicators) for every module, and we use them
continually to check on progress towards achieving our targets.

THE EN IRON

E N TA L S T R AT E G Y S H O L I S T I C A P P R OAC H

AN U ACTU R I NG

R ECYC LI NG

USAGE

This modular approach along the entire value chain also helps to
ensure that we can track a products environmental impact
throughout its lifecycle, from production through the usage phase,
down to recycling. Our holistic approach means that we begin our
analysis in the vehicle development phase, and then calculate the
environmental footprint for a products entire lifecycle. We are
thus able to identify where improvements have the greatest effect
and develop targeted innovations.
We have established a clear reporting structure, based on
existing responsibilities and reporting mechanisms, to ensure
effective and efficient management. The Group officer responsible for environment, energy and new business areas reports at
regular intervals on the status of the Group environmental strategy

and progress towards achieving goals in specific target areas to

the Group Board of Management in its role as the Sustainability
Board the ultimate sustainability committee. This officer also
chairs the Groups Environment and Energy steering group,
which comprises the individuals with responsibility for these
issues in all Group divisions, brands and companies as well as the
Group Works Council.
We involve our employees in our environmental strateg y
by informing them about their targets and about the related
procedures. This is a sizable challenge in a company with more
than 590,000 employees and over 100 locations. We are increasingly using online platforms to improve information exchange, to
network employees with environmental responsibilities and to
support training.
Information events and specific training programs are held
for management staff, works council members and environment
and energy experts at different Group locations. These training
programs also encourage participants to exchange experiences
and network. The Groups environment and energy experts also
meet regularly at conferences and in working groups. In order to
offer training tailored to employees specific workflows, training
modules are developed for different areas such as logistics, procurement and production.
We provide training not only for our employees, but also for our
suppliers. Through our sustainability in supplier relationships
concept we ensure that Volkswagens environmental targets and
measures are also taken into account in the supply chain. For example, we provide a digital training module in nine languages on
the Group Business Platform, which we make available to all our
suppliers.
Our ecological commitment is already recognized worldwide
today. The Groups top scores in prominent sustainability and
environmental rankings also bear this out. However, this is no
reason for us to sit back on our laurels; rather it spurs us on to
defend and strengthen our leading position and implement our
vision of becoming the leading automobile manufacturer in
ecological terms too.

U R T H E R I N O R AT I O N O N T H I S T O P I C
www.volkswagenag.com/sustainability

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E N V I R O N M E N TA L M A N A G E M E N T I N T H E G R O U P

We aim to be the leading automotive company in ecological terms as

well by 2018. To help us achieve this goal, we agreed our Group
environmental strategy encompassing all of our environmental
protection activities at the end of 2013.
The modular structure of this Group environmental strategy
focuses on our value chain and involves all business areas. We have
established ambitious, measurable targets in these areas and are
pursuing them systematically. This includes reducing CO2 emissions from our European new car fleet to 95 g CO2/km by 2020 as
well as designing each new model generation to be 10 to 15% more
efficient than its aiming to place us at the forefront of creating
environmentally friendly products.
Another target area in our environmental strategy specifies that
we are further extending our efforts to conserve resources across
the entire lifecycle of our products. We plan to reduce CO2 emissions, energy consumption, water consumption, waste for disposal
and organic solvents in the production process. By 2018, we aim to
have reduced these five key environmental indicators for every
vehicle produced throughout all of the Groups locations by 25%
when compared with 2010. The charts on page 146 show clearly
that we have already made considerable progress towards reducing
all five of these key indicators, which are measured in accordance
with the internal VW standard 98.000 in force across the whole
Group.
We have also established environmental targets for the logistics,
sales and marketing areas. Beginning in the reporting period,
Volkswagen has been a member of the Clean Shipping Network, an
association of marine cargo owners, and is represented on its
management board. We will use the Clean Shipping Index in future
as an assessment tool to analyze and reduce the environmental
impact of marine shipments. We are also successively involving our
dealerships in reducing emissions. For example, in 2014 Porsche
launched a sustainability initiative to support its dealerships, with a
view to improving energy efficiency in existing Porsche centers and
designing new centers to be as efficient as possible.
The concept of intelligent mobility in the environmental
strategy addresses future mobility solutions. This is where our drive
to reduce inefficiencies, satisfy our customers mobility and comfort
requirements and promote environmental protection all comes
together. The concept is based on the efficient interplay of people,
infrastructure, technologies and means of transport.
In light of the global trend towards urbanization, for example,
vehicle noise reduction is also increasingly becoming a priority. We
are not only developing ever quieter vehicles; we are also committed to reducing overall traffic noise. We therefore developed a
noise level tool in collaboration with the prominent firm of
Lrmkontor GmbH, Hamburg. The tool measures noise pollution in
particular and illustrates how much noise is perceived by how
many of the citys inhabitants depending on the noise reduction
measures selected.

144

Anchoring environmental aspects firmly within our organizational

and decision-making processes is essential to achieving our
ambitious targets. The Groups environmental management system
has been in place for many years and provides the basis for
ensuring that these aspects are taken into account. The Groups
environmental policy is a key component of this. It is based on the
Groups environmental principles that are in force worldwide. The
environmental targets for technical development are also firmly
anchored in the environmental management system. We make sure
that these processes are regularly confirmed by submitting them to
certification procedures and external audits, including in the
current reporting year. An energy management system that was
introduced successively into all locations from 2010 has been
awarded ISO 50001 certification since 2012. In addition, Volkswagens German locations have voluntarily participated in the
European Unions Eco-Management and Audit Scheme (EMAS)
since 1995. We have taken part in a growing number of environmental certification schemes since then, with the result that our
locations worldwide as well as technical development have received
certification under international standard ISO 14001, and additionally under ISO/TR 14062 since 2009.
The fact that environmental issues are firmly anchored within
the Group is also reflected in the way that ecological aspects feature
in all our employees thinking and actions another target field in
our environmental strategy. We pool and make use of all our
employees skills and expertise in the area of environmental protection across brands and regions. Making sure that employees are
well informed and attain qualifications is an important condition.
For this reason, we employ environmental and energy management
officers around the world, who help to build a broad basis for
environmental protection within the Group.
Intelligent mobility

Mobility, like energy, is a key condition for economic growth and

sustainable development. As the global population increases and at
the same time more and more people enter the middle classes,
demand for mobility will also keep on growing in the future. The
challenge will be to meet growing this demand despite the everdecreasing availability of resources. Mobility must therefore be
designed to increase efficiency and minimize waste, but at the same
time we must not lose sight of other crucial aspects such as safety,
access to mobility, or air quality. The solution must surely be to
combine efficiency, resource conservation and individual transportation pleasure.
This applies not only to energy use but also importantly to the
space required for mobility, especially in urban areas. The
continuing trend towards urbanization means that more and more
people live in places with limited space available for infrastructure.
Given the wide variety of mobility needs and local conditions, one
possible solution alone will not be enough. Volkswagen is therefore

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facilities, but also throughout the supply chain, logistics processes

and recycling initiatives in other words, to the entire lifecycle of
our products.
We take account of climate change and the resulting risks and
opportunities in all of our strategic decisions. To achieve this, we
have established committees such as the CSR & Sustainability
Steering Group, the Environment & Energy Steering Group and the
Group CO2 Steering Group. A key instrument for us is the CO2
Registry management and analysis tool, for example, that enables
us to analyze every one of the Groups vehicle projects over the
entire vehicles lifecycle with regard to their CO2 emissions. The
Registry is based on the targets for CO2 savings derived from our
Group environmental strategy.
Strategy development in the area of climate protection is
prepared and supported by technical discussions with international
scientific experts (for example, representatives of the International
Energy Agency) and other stakeholders (for example, the World
Business Council for Sustainable Development).

working on a variety of approaches, from innovative vehicle

concepts right through to research into innovative urban developments such as Micro-City. However, these solutions can only be fully
effective if they are networked together at the right time and in the
right place. They require the efficient interplay of people, infrastructure, technologies and means of transport. Volkswagen calls
this intelligent mobility. Volkswagen has been addressing this
issue in related research projects for over 20 years. In addition to
analyzing traffic and mobility developments, the work focuses on
specialist strategic advice both within the Group and in open
discussions with external stakeholders.
Volkswagen is currently working on concepts and concrete
solutions with 14 other companies from different sectors in six
cities across the world within the framework of the World Business
Council for Sustainable Developments Sustainable Mobility
Project 2.0 to develop pragmatic approaches to the challenges
posed by sustainable mobility.
Another current discussion platform is "Urban Mobility 2030", a
film showing effective traffic solutions in their relevant context from
both a traffic management and the individual users perspective.
The third aspect of our mobility research is the trialing of
demonstrators. One example is the digital Intersection Pilot
used in the UR:BAN (Urban Space: User oriented assistance systems
and network management) research project funded by the German
federal government, which uses intelligent traffic lights to improve
traffic flow at intersections. It has already proven to be effective in
trials during the reporting period.
Modern information and communications technology plays a
key role in intelligent mobility. Having more comprehensive
information available at all levels makes for more efficient planning,
decision making and driving. This applies to the information
exchange between traffic lights and vehicles, for example when the
Intersection Pilot improves traffic flows at intersections, just as
much as to the provision of up-to-the-minute information on
alternative routes, and is equally useful to the organizations that
operate or plan transportation systems and infrastructure projects.
Another key technology, automated driving, will open the way
for a wide variety of new solutions that will make a difference to
both stationary and moving traffic.

Water management

Water is not just a means of subsistence, but also a means of

production and a source of energy. In automobile production, it is
impossible to avoid using water in washing processes in mechanical manufacturing or for cooling, for example. Volkswagen is aware
of its responsibility and uses this valuable resource with care. This is
also laid down in the Groups environmental principles: three of the
22 environmental principles for production relate directly to the
issue of water.
Water was a top priority issue for the Volkswagen Group in 2014.
The Group environmental strategy forms the basis for ensuring that
fresh water consumption is taken into account across a vehicles
entire lifecycle. For example, we started by prioritizing the Groups
locations according to the importance of water to their production
processes. This involved checking whether they were located in
areas at risk of water scarcity and how secure their water supply was.
The aim is to identify measures to help increase the security of
supply for a production facility and its surrounding area. This
includes on-site measures, such as water-conservation processes,
for example, as well as external projects, such as reforestation to
boost groundwater regeneration or the renaturation of river
courses. The fact that water consumption throughout the Group has
fallen by 6.9% per vehicle produced since 2010 testifies to the
success of these activities. Water was also the key issue in 2014 for
the Think Blue.Factory. initiative. Among other brands, the
Volkswagen Passenger Cars brand made a substantial contribution
to reducing water consumption, as shown in the following examples.

Climate protection

Climate protection presents one of the greatest challenges to our

society. Volkswagen Group, with over 100 locations across the world
and producing more than 10 million vehicles in 2014, has a
particular responsibility in this area. Our Group environmental
strategy enables us to meet this challenge. It applies not only to the
products and manufacturing processes in our own production

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K E Y E N V I R O N M E N TA L I N D I C AT O R S I N T H E VO L K SWAG E N G R O U P

E N E R G Y CO N S U M P T I O N

CO 2 E M I S S I O N S

in kilowatt hours per vehicle

in kilograms per vehicle

2014

2,054

2013

2,204

2010

-18.5%

2014

2013

VO C E M I S S I O N S 3

D I S P O S A B L E WA S T E

in kilograms per vehicle

in kilograms per vehicle

2014
2013

-26.1%

3.05

2014

3.57

2010

2013
2010

4.13

885

2010

2,519

-23.2%

842
1,096

-21.7%

18.3

20.1
23.3

F R E S H WAT E R CO N S U M P T I O N

in cubic meters per vehicle

2014
2013
2010

4.23
4.38

1 Production of passenger cars and light commercial vehicles.

Prior-year figures adjusted.
2 Change 2014 as against 2010.
3 Volatile organic compounds (VOCs).

- 6.9%

4.54

At the Curitiba production facility in Brazil, a simple technical

solution enables us to save 18,000 m of water a year the factorys
sprinkler systems have to be tested regularly. As of this reporting
period, pipes and storage containers are now used to collect the
water that previously went to waste and it is then used in cooling
processes.
In addition to process optimization, a strong network for the
people charged with this responsibility is an important condition
for identifying improvement opportunities and making greater
savings. That is why we held a two-week workshop for representatives of Shanghai-Volkswagen, Volkswagen Group China and the
Groups environmental department in July 2014, which included
visits to several Group locations to look at water management,
among other things.

At the Osnabrck facility we have reduced our environmental

footprint by using waste water and saving fresh water. Instead of
replacing water lost through evaporation during spray painting
washout with fresh water as we used to do, we now make up the
evaporation loss with the waste water from the pretreatment plant.
This measure reduces the paint shops water consumption by
approximately 160 liters for every vehicle produced.
The MAN production facility in Munich uses water from its own
well to cool production areas and buildings. By managing and finetuning operations to use water only as needed, the amount of water
needed for cooling was reduced by some 300,000 m in 2014. This
also results in a saving of around 9,000 kWh of electricity to operate
the water cooling pumps.

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well as the manufacture of reconditioned exchange parts. New

vehicles from the Volkswagen Passenger Cars brand, such as the
new Passat, currently consist of about one-third recycled materials.
Volkswagen Passenger Cars brands Genuine Exchange Parts
program is continually being expanded. In the first six months of
2014 alone, nearly 500 new exchange part numbers were added to
the program. The catalog including the acceptance criteria for
returns, is now available in 22 languages. The advantage to the
customer is that genuine exchange parts offer the same quality,
functionality and warranty but are on average 40% cheaper than
the corresponding new parts. The program benefits both customers
and the environment: remanufacturing engines alone saves around
7,000 tonnes of steel every year. Our experience with remanufacturing dual clutches shows that mechanical wear and tear in
many components is much less than in earlier manual gear units.
This means that many more components can be re-used cutting
CO2 emissions and at the same time delivering economic benefits to
customers.

Lifecycle assessment

Cutting fuel consumption, and the resulting reduction in emissions,

are important measures towards improving the environmental
performance of our vehicles. However, these on their own do not
reduce a cars environmental impact to a minimum. After all, this
does not begin when it starts being driven by the customer. The
materials and components must first be manufactured and the raw
materials produced and this long before the wheels of a new car
turn for the first time.
In order to reduce the environmental impact of a vehicle, the
entire product lifecycle is taken into consideration when vehicles
are being developed. This means that the assessment of new
vehicles, components and materials begins before they are even
produced: from the first idea and design sketches, through
production and the subsequent usage phase, to recycling.
Volkswagen produces lifecycle assessments or environmental
impact studies in accordance with ISO standards 14040 and
14044 to achieve this. Using these, we determine where improvements have the greatest effect and develop innovations that target
these points directly. We call this approach lifecycle engineering.
We keep our customers, shareholders and other interested
groups informed about the success stories of our environmentally
responsible vehicle development and lifecycle assessments. The
Volkswagen Passenger Cars brand uses the term environmental
ratings when it publishes the ecological advances in new vehicle
models compared with their immediate predecessors, while Audi
publishes this under the heading of environmental footprint. For
the communication to be credible, it is important that the results
and evaluations meet internationally recognized quality standards
and are transparent, comparable and understandable. In order to
ensure this, the results of the lifecycle assessments are reviewed,
confirmed and certified by independent experts, in accordance
with the requirements of ISO 14040.

Biodiversity

Biodiversity means the variety of life on our planet, and covers the
variety of species, the genetic differences within species and the
diversity of ecosystems. We rely on it as the basis for our continued
existence: healthy food, clean water, fertile soils and a balanced
climate. Maintaining biological diversity is one of the greatest
challenges of our time. The United Nations has therefore declared
the current decade to be the "UN Decade on Biodiversity".
Volkswagen has pursued the goal of protecting biodiversity
since 2007. In a mission statement, Volkswagen has committed to
support the protection of species at all of its locations. The Group
makes its contribution to protecting biological diversity above all
through its commitment to reducing greenhouse gas emissions and
increasing the efficiency of materials and resources.
As a founding member of the Biodiversity in Good Company e.V.
initiative, Volkswagen has also committed to setting up a biodiversity management system and to helping achieve the targets
established by the Convention on Biological Diversity. To ensure
that this responsibility is met, Volkswagen has appointed a biodiversity officer and defined the protection of biological diversity
within its environmental management system. At a total of 32 sites
for the Volkswagen Passenger Cars, Porsche and MAN brands, we
worked with an insurance company to prepare studies outlining
production-related risks to biological diversity. Volkswagen supports networking between the various players in the fields of
business, politics, society and academia, with a view to increasing
public awareness of biodiversity conservation and to increase
knowledge about the issue. Volkswagen was again represented on
the management board of the Biodiversity in Good Company e.V. in
2014 and was involved in managing the wide variety of activities
undertaken at national and international level.

Recycling

Recycling plays a major part in conserving resources. Using

recycled materials eliminates the production and manufacturing
costs for new raw materials. Recycling is an integral part of vehicle
development at Volkswagen, which means that new Volkswagen
vehicles can be 85% recycled and 95% re-used. In order to realize
the economic potential of this resource after a long vehicle life,
Volkswagen is involved in developing state-of-the-art technologies
for recycling older vehicles and their parts. Other examples in
addition to the patented, award-winning VW-SiCon process for the
treatment of shredder residues are the LithoRec (lithium-ion
battery recycling) and ElmoReL (electric vehicle recycling key
components in power electronics) research projects into recycling
components from electric vehicles.
Other examples that combine ecological benefits with economic utility include the use of recycled materials in new vehicles as

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We are continuing our cooperation with the Nature and Biodiversity

Conservation Union (NABU), the main environmental organization
with the largest membership in Germany. One of the projects we
established jointly was the German Moor Conservation Fund,
funded by Volkswagen Financial Services to the tune of 1.6 million,
which has already sponsored 13 moor rewatering projects.
As carbon sinks, moors play an important role in climate protection.
This commitment was designated as an official project in the "United
Nations Decade on Biodiversity" in 2014. As a partner in nature
conservation, Volkswagen also supported NABUs renaturation of
the Lower Havel river. More than 1,000 animal and plant species
are threatened with extinction in this, inland Central Europes
largest and most important wetland area. Volkswagen and NABU
also worked together on their joint Willkommen Wolf! wolf
conservation initiative in 2014. This project aims to increase
acceptance of this wild animal and support its return to Germany,
where it was once hunted to extinction.
The Volkswagen Group supports nature conservation and the
protection of species diversity at its international locations and
further afield. One new addition to the list of projects already up
and running is the initiative launched in 2014 at our Urumqi
location in the Chinese province of Xinjiang. Volkswagen is sponsoring research into biodiversity in the area around the Tarim River.
The Think Blue.Nature. conservation and species protection
project in Mexico was also launched in April 2014. This project is
located in a biodiversity corridor in the eastern Sierra Madre that
extends over four million hectares and is home to around 650
endangered species. Volkswagen de Mxico is also the countrys
largest private sponsor of biodiversity research (Por amor al
planeta).
External environmental awards

The Volkswagen Group and its brands received numerous awards

for environmental protection and sustainability projects in 2014.
Here are some examples:
Not one, but two cars in the Volkswagen Passenger Cars brand
received the accolade of most environmentally friendly vehicles
in all classes in 2014 from AUTOTEST, the magazine for car buyers
published by AUTO BILD, and KOTREND, the independent
environmental research institute. The eco up! took first place in the
small car category and the Passat 1.4 TSI EcoFuel was the winner in
the upper midsize category. Fuel consumption and CO2 emissions
were not the only deciding factors the jury also took account of the
Companys environmental impact and its ecological and social
responsibility efforts.
The Green Truck 2014 award from specialist journals VerkehrsRundschau and Trucker went to the Scania G 410 with
Euro 6 technology in March 2014. As the best performer in terms of
consumption and emissions, the G 410 headed the environmental
ranking by a large margin.
The MAN Lion's City GL CNG received the Bus of the Year 2015
award in the Bus Euro Test. The low-pollution, climate-friendly

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articulated bus with Euro 6 technology impressed the jury of

European trade journalists. Fueled by biogas or e-gas, operation of
the bus is close to carbon neutral. The vehicle concept also
contributed to its high rating: as the only five-door on the market, it
ensures optimal passenger flow and short stop times.
In April 2014, Audi received a DEKRA report on the calculation
of its carbon footprint, which was certified in accordance with ISO
14064. The report confirmed the emissions calculated for the
entire lifecycle of its models. Audi can use the carbon footprint to
make its company-wide greenhouse gas emissions more
transparent and subsequently analyze them more accurately and
reduce them.
The Volkswagen Group received the Gold Medal Award 2013
for Sustainable Development in May 2014. The non-profit World
Environmental Center recognized Volkswagens achievements in
sustainable development and environmentally-conscious business
practices with the prize. The jury highlighted the Volkswagen
Groups understanding of sustainability as a strategic goal and its
exemplary implementation.
Audi was voted the most sustainable company in the Sustainability Image Score sustainability rankings produced by
consultancy Facit Research. The annual study is based on a survey of
German consumers. In 2014, a representative sample of more than
8,000 consumers rated 104 companies in 16 industries. Audi led
the rankings in all three aspects of sustainability economic,
environmental and social.
The Volkswagen Passenger Cars brand was also acknowledged
for its holistic economic, environmental and social responsibility,
receiving the Nachhaltigkeitspreis 2014 (Sustainability Prize
2014) with a Gold rating. The Germany-wide survey was conducted by DEUTSCHLAND TEST, FOCUS MONEY and consultants Faktenkontor. Volkswagen Passenger Cars received the
highest rating of 37 automobile brands. It scored particularly highly
for economic responsibility, meaning the brands commitment to
economic success and hence stable employment.
Volkswagen Passenger Cars' Think Blue. Factory. environmental program won the National Energy Globe Award Germany
in July 2014. The careful use of resources in production was one of
the key factors in the program being voted the country's best
environmental project. The prize has been awarded annually to
regional, national and international environmental projects under
the auspices of the Energy Globe Foundation since 1999.
The Volkswagen Group received the 2014 policy award in the
Corporate Social Responsibility category for its strategic partnership with the Nature and Biodiversity Conservation Union (NABU).
The politik & kommunikation magazine awards the prize each year
for the best political, public and social campaigns and innovations.

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T H E ROA D TO C A R B O N - N E U T R A L M O B I L I T Y

Conventional electricity

Carbon-neutral electricity

Fuel cell
Battery power
Plug-in hybrid

Carbon-neutral fuels

Hybrid drive

(liquid, gaseous)

Combustion engine

Carbonneutral
sustainable
mobility

Conventional fuels

The Modular Transverse Toolkit (MQB) is already designed so that

the full range of drive systems can be deployed and flexibly mounted
at product lines across our global locations bumper to bumper.
From todays perspective, the combustion engine looks set to
serve as the broad basis for drive technology in the coming years.
This is particularly true for potential growth markets such as Russia,
India and the Far East. Given the need to use resources responsibly,
it is therefore crucial to further optimize combustion engines. Our
new generations of petrol and diesel engines satisfy this
requirement. When it comes to vehicles with conventional drive
systems, we have significantly reduced average fuel consumption.
The primary contributing factors here were the introduction of
BlueMotion Technology in our TDI and TSI engines, engine
management and our innovative direct shift gearboxes (DSGs),
lightweight construction and aerodynamic design.

Fuel and drivetrain strategy

It is expected that, by 2018, 90% of the Volkswagen Groups

vehicles will be sold in markets that have statutory limits on new
vehicle fleet greenhouse gas emissions. Meeting this ambitious
target will require significant funding for measures to reduce CO2
emissions in conventional drive systems and for the development of
electric vehicles. The Volkswagen Group invested 11.5 billion in
research and development in the past year. The majority of this was
spent on green technologies, a major long-term investment that is
already bearing fruit: the Groups new vehicle fleet in the EU
emitted an average of approximately 126 grams of CO2 per
kilometer in 2014, meaning that we are already under the 2015
European limit of 130 grams of CO2 per kilometer.
The Volkswagen Groups fuel and drivetrain strategy is paving
the way for carbon-neutral, sustainable mobility. We are pursuing
the goal of increasing drive system efficiency with each new model
generation, irrespective of whether these are powered by
combustion engines, hybrids, plug-in hybrids, pure electric drives,
or potential future fuel cell drive systems. All of our mobility
concepts are tailored to our customers and their increasingly
personalized mobility requirements. This will expand the portfolio
of different drive systems and will also lead to a future situation
where traditional drive systems coexist side-by-side with e-mobility.

S U STA I N A B I L I T Y I N T H E VO L K SWAG E N G R O U P
www.volkswagenag.com/sustainability

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classes, to build trust in the new technologies, and thus to help

e-mobility gain acceptance. We have been offering hybrid versions
in a range of vehicle classes for several years. In 2013, we launched
the first plug-in hybrid-drive vehicles onto the market the Porsche
Panamera S E-Hybrid, the Porsche 918 Spyder and the limited run
XL1. With the launch of the Golf GTE, the Audi A3 Sportback e-tron
and the Passat GTE in the reporting period, we unveiled the first
plug-in hybrids to be based on the MQB.
The modular toolkit strategy is one of the Volkswagen Groups
key advantages. We are not just realizing substantial synergies
through implementing the modular toolkit, we have also designed
the vehicle architecture so that all drive system types can be
integrated flexibly and economically. This is particularly true of the
MQB-based vehicles, i.e. the upcoming Polo through the Audi A3
down to the Passat. For example, these models can draw on a
standardized plug-in hybrid system comprising a highly efficient
TSI engine, an electric motor, our compact six-speed direct shift
gearbox and a lithium-ion battery. We have integrated the production of electrified vehicles into the manufacturing processes at
our existing plants, e.g. in Wolfsburg, Ingolstadt and Leipzig.
The battery is the heart of an electric vehicle and its storage
capacity is the deciding factor in determining the vehicles range.
The technology currently used in pure electric and plug-in hybrid
vehicles uses lithium-ion cells. We assemble these into battery
systems at our plant in Braunschweig. Work is currently ongoing to
develop solid electrolyte-based battery types with a higher energy
density, which will also meet higher safety standards. The industrial
application of this technology is currently being reviewed. The next
generation of electric and plug-in hybrid vehicles will be fitted with
improved lithium-ion technology. Electric motors are manufactured at our plant in Kassel.

Natural gas engines play a key role in the drivetrain portfolio. As a

rule, they emit around 25% less CO2 than petrol engines due to the
fuels chemical properties, something experienced by customers
who are driving our natural gas vehicles such as the eco up!,
Golf TGI, or Audi A3 g-tron. Natural gas is also being used as an
economical and clean drive system for heavy commercial vehicles.
Liquefied natural gas (LNG) must replace compressed natural gas
(CNG) for these engines to be used in long-distance trucks and
buses, since this is the only way of achieving the required energy
density and thus the desired range. Better infrastructure is needed
for natural gas to be widely used as a fuel. For example, fuel station
networks have only been sufficiently developed in certain countries.
We are expanding our traditional range of engines through
drivetrain electrification. The number of drivers travelling predominantly short distances is growing. These include commuters
and residents of cities, but also delivery vehicles in urban areas. The
population shift towards urban areas is continuing, and by no
means is this limited to just the burgeoning megacities of Asia and
South America. Pure-play electric vehicles like the e-up! and e-Golf
are emission-free when driven locally, and are thus of particular
interest to customers whose everyday driving covers short distances.
Opportunities to charge batteries privately e.g. using a charging
station installed at a customers location must be supplemented by
a good public recharging infrastructure in the medium to long term.
However, the majority of customer also want to take their
vehicles on longer journeys in addition to driving short distances.
Hybrid vehicles, in particular plug-in hybrids, combine highly
efficient combustion engines with zero-emission electric motors.
Where this combination of drive concepts is concerned, Volkswagen sees an opportunity to offer electrified models for short- and
long-distance driving to customers of a wide range of vehicle

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Group has launched the Future Tracks program: we are developing solutions for the fundamental upheavals and challenges at
Board of Management and senior executive level. Future Tracks
brings together all topics, activities and measures that we are
deploying now and will be deploying in the coming years to prepare
for the major issues of the future across all brands and regions
and throughout the entire Group.
From a technical viewpoint, our work focuses on drive technologies, digitization and the networking of products and
production. Added to this are new requirements for individual
mobility and mobility-related services. Our efforts aim to ensure
that the Volkswagen Group takes a leading role in shaping and
influencing the new world of mobility.
A solid commercial basis is essential to be able to tackle these
challenges successfully. For this reason, Future Tracks has been
introduced not only as a forward-looking program it also focuses
on efficiency. Our intention is to continue to grow profitably,
ensuring that we are always in the position to invest in the future of
the Volkswagen Group. We are thus creating the foundations to
shape the automotive transition and to ensure long-term success.

Hydrogen will not be widely available as a fuel in the medium term.

In contrast to natural gas, adequate distribution infrastructure is
not yet available. Both hydrogen filling stations and renewable
hydrogen production plants have to be constructed from scratch.
Volkswagen has been working on fuel cell technologies for over 15
years and has gained extensive experience operating a test fleet. The
MQB has already been adapted for fuel cells, as demonstrated by
the Golf Variant HyMotion concept car launched at the Los Angeles
Auto Show 2014. The decision on whether to proceed to series
production will depend on market requirements and infrastructure.
Thanks to our conventional and alternative technologies and
the modular toolkit strategy, which allows innovations to be
incorporated rapidly into different vehicles, we are optimally
positioned to meet the challenges that the future will bring. We have
expanded our expertise in electric traction with the help of
additional technical specialists and experts, and have provided our
employees with training on the new technology via a major training
program.
FUTU RE TRACKS

The automotive industry is facing the greatest upheavals in its

history. Alternative drive systems, the digitization of the entire value
chain and rapidly changing global customer expectations of
mobility will shape the coming years. In response, the Volkswagen

R E P O R T O N P O ST- B A L A N C E S H E E T D AT E E V E N T S

There were no significant events after the end of fiscal year 2014.

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Report on Expected
Developments
The global economy is expected to continue its growth trajectory in 2015, still driven by the rapidly
growing emerging markets of Asia in particular. Many automotive markets are also slated to expand
further in 2015. The Volkswagen Group intends to capitalize on this trend by building on the strength
of its brand diversity, pioneering technologies and global presence.

In the following, we describe the expected development of the

Volkswagen Group and the general framework for its business
activities. Risks and opportunities that could represent a departure
from the forecast trends are presented in the Report on Risks and
Opportunities.
Our assumptions are based on current estimates by third-party
institutions. These include economic research institutes, banks,
multinational organizations and consulting firms.

Germany

We are confident that Germanys solid economic development will

be sustained in 2015 at the prior-year level with stable growth rates.
The situation in the labor market is also expected to remain positive.
North America

We expect economic activity in North America to continue to pick up

in 2015, with economic growth in the USA and Mexico gathering
momentum compared with the prior year.

GLOBAL ECONOMIC DEVELOPMENT

In our plans, we assume that the global economy will grow slightly
faster in 2015 than in the reporting period. We anticipate that the
emerging economies of Asia will record the highest growth rates.
We expect to see signs of recovery in the economies of the major
industrialized nations, though the rates of expansion will remain
moderate.
We believe that the global economy will continue growing in the
period 2016 to 2019.

South America

In Brazil, we anticipate that GDP growth will recover somewhat in

2015 compared with the previous year. Argentinas economy may
contract further in 2015 on account of the persistently high
inflation and the muted business climate.
Asia-Pacific

Economic growth in China is set to remain at a high level in 2015.

We expect a year-on-year improvement in Japans GDP growth in
2015. In India, we estimate that following a recent slight
improvement the pace of expansion will stabilize at around the
2014 level. Economic growth in the ASEAN region is set to see a
slight improvement in 2015 compared with the previous year.

Europe/Other markets

In Western Europe, the economic recovery is expected to continue

in 2015. However, the upturn remains contingent on structural
problems being resolved.
The situation of the economies in Central and Eastern Europe
should remain stable, depending on how the conflict between
Russia and Ukraine evolves. We expect clearly negative growth in
the Russian economy in 2015.
In 2015, the South African economy will probably continue to
suffer the effects of political uncertainty and social tensions
resulting primarily from high unemployment levels, though the
pace of growth should nevertheless accelerate somewhat once
again there.

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Canadian market, demand is likely to be slightly below the previous

years high level, and in Mexico we also anticipate a slight uptrend.

T R E N D S I N T H E PA S S E N G E R C A R M A R K E T S

In 2015, we expect to see mixed trends in the passenger car markets

in the individual regions. Overall, the increase in global demand for
new vehicles will probably be slower than in the reporting period.
The Volkswagen Group is ideally positioned to deal with the
mixed developments in the global automotive markets. Our broad,
steadily growing product range featuring the latest generation of
consumption-optimized engines as well as a variety of alternative
drives gives us a global competitive edge. We are pursuing the goal
of offering all customers the mobility and innovation they need,
sustainably strengthening our competitive position in the process.
We estimate that demand for passenger cars worldwide will
continue to increase in the period 2016 to 2019.

South America

Owing to their dependence on demand for raw materials, the South

American markets are heavily influenced by developments in the
global economy. Furthermore, increasingly protectionist
tendencies are adversely affecting the performance of the regions
vehicle markets, especially in Brazil and Argentina, which have
imposed restrictions on vehicle imports. Passenger car sales in
South America will probably fall substantially short of the prior-year
level. In Brazil, the largest market in South America, we are
forecasting that the market volume in 2015 will be significantly
lower than in the previous year. Following the market slump in
2014, we anticipate that demand in the Argentinian market will
continue to taper off markedly in view of the persistently high
inflation and the challenging macroeconomic situation.

Europe/Other markets

In Western Europe, we are predicting a slight increase in demand

for automobiles in 2015 after the downtrend came to an end in the
reporting period and growth was recorded for the first time in the
wake of four years of decline. Pre-crisis levels are not expected to be
reached in the medium term, however. The ongoing debt crisis will
further unsettle consumers in many countries in the region and
restrict their financial opportunities to buy new cars. In Spain and
Italy, the recovery will probably continue at a modest pace, while in
the United Kingdom we anticipate that the market volume will be
just below the high level seen in the reporting period. In France, we
are forecasting stronger growth than in 2014 thanks to a state
subsidy for scrapping used diesel cars that will apply from 2015.
In Central and Eastern European markets, demand for
passenger cars in 2015 is likely to be down considerably year-onyear, mainly due to the Russian market, which is slated to fall short
of the prior-year level as a result of the political crisis. By contrast,
we expect to see further growth or volumes remaining at the
previous years level in many Central European markets.
After a weak 2014, we are projecting that the volume of the
South African automotive market will remain level with the
previous year in 2015.

Asia-Pacific

The passenger car markets in the Asia-Pacific region look set to

continue their growth trajectory in 2015, though at a slower pace.
In China, the steady increase in demand for individual mobility will
push up demand, albeit with less momentum. We expect the
Japanese passenger car market, which moderately exceeded the
previous years volume in 2014, to record a significant drop in 2015,
primarily as a result of tax breaks expiring. In the Indian passenger
car market, we anticipate a slightly higher volume in 2015 than in
the previous year.
After a sizeable slump in demand in Thailands passenger car
market in the reporting period dragged down passenger car sales in
the ASEAN region overall, we anticipate positive growth rates in
2015 for the markets in the ASEAN region.
TR E N DS I N TH E M A R K ETS F OR COMM ERC IA L VE H I C LE S

The markets for light commercial vehicles will also see mixed
trends in the individual regions in 2015. Overall, we envisage slight
growth in demand, which is likely to continue in the period 2016 to
2019.
In light of the sustained economic stabilization expected in
2015, we should see modest growth in the markets for light commercial vehicles in many countries in Western Europe. We anticipate that sales in Germany will be on a level with the previous year.
In the Central and Eastern European markets, sales of light
commercial vehicles in 2015 will probably be on a level with the
previous year. In Russia, we anticipate a further decrease in the
market volume in 2015.
In North America, light commercial vehicles up to 6.35 tonnes
are allocated to the passenger car market.

Germany

In the reporting period, the German automobile market curbed its

downward trend and recorded growth. We expect demand to edge
up in 2015 provided the economic conditions do not deteriorate.
North America

In 2015, we expect that the market for passenger cars and light
commercial vehicles (up to 6.35 t) in the USA will benefit from the
situation in the labor market and attractive financing conditions,
and that the positive trend seen in the past year will endure, albeit at
a noticeably weaker pace. The SUV segment will drive growth. In the

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In the bus markets that are relevant for the Volkswagen Group, we
expect that new registrations will decline noticeably in 2015. This is
due to the negative economic growth in the South American
markets. While we anticipate that demand in Western Europe will
remain level year-on-year in 2015, with the markets in Central and
Eastern Europe experiencing modest growth, we expect a significant decline in the South American market.
For the period 2016 to 2019, we expect moderate growth overall
in the bus markets that are relevant for the Volkswagen Group.

In South America, we estimate that there will be a noticeable

increase in demand in 2015 as against the prior-year level. Pickup
and SUV models in particular are enjoying growing popularity. In
Brazil, the markets growth will be determined by newly introduced
SUV models that are registered as commercial vehicles. We expect
the Argentinian market to experience lower demand in 2015 than
in the previous year as a consequence of the macroeconomic
situation.
The market volume in the Asia-Pacific region in 2015 will
probably record a modest increase year-on-year. We expect growth
in the Chinese market to be slightly down on the previous year. In
Japan, we anticipate that the slight downtrend will continue in 2015.
For the majority of the Asian light commercial vehicle markets,
including the ASEAN markets, we are forecasting further growth
starting in 2015.

TRENDS I N TH E MARKETS FOR POWER ENGI NEERI NG

We believe that in 2015, the power engineering segment will still

have to contend with a difficult market environment in which the
individual markets will develop at different rates.
In the shipbuilding market, we expect total order volumes to
remain at the level of the previous year on account of the continuing
overcapacity. We anticipate that the market volume of two-stroke
engines, used in merchant shipping, will be slightly below the
prior-year figure. In 2015, we expect to see sustained high demand
for special-purpose ships such as LNG tankers, cruise ships and
government vessels. By contrast, demand for ships for offshore
applications is likely to recede slightly in 2015 as a consequence of
the currently lower oil prices. The competitive pressure in shipbuilding will continue unabated.
Growth in the power generation market will be mainly
determined by macroeconomic developments in the emerging economies. As growth in key developing countries and emerging
markets is slow at present, we expect demand in 2015 to remain on
a level with the previous year if the competitive pressure persists. In
the medium and long term, the outlook is still encouraging,
however. Global population growth and the burgeoning demand for
energy are generating continuous demand for power plant
solutions. The trends towards more decentralized energy supplies
and natural gas-fired power plants are continuing undiminished.
In the processing industry and in the oil and gas industry, we
are forecasting a difficult market environment for 2015. Although
investment levels will remain high in the medium term due to high
demand for primary materials, weak economic growth in key
regions is curbing the processing industrys willingness to invest.
Investment activity in the oil and gas industry will experience a
noticeable decline in 2015 as a result of the currently low oil price.
We therefore expect the number of new contracts awarded in 2015
to be at best on a level with the previous year, with no let-up in the
price pressure.
The development of the offshore wind energy market in
Germany is still fraught with uncertainty. A positive outlook is not
expected until the infrastructural and political framework has been
clarified, something that remains unclear for 2015. Going forward,
sales opportunities could also emerge to a greater extent in other
regions of the world.

In the markets for mid-sized and heavy trucks that are relevant for
the Volkswagen Group, new registrations in 2015 are set to drop
noticeably below the prior-year level. However, we expect a positive
trend in the period 2016 to 2019.
We predict that demand in Western European markets will rise
modestly year-on-year on the strength of the economic recovery;
this had been affected in 2013 by pull-forward effects related to the
introduction of the Euro 6 emission standard. It is expected that the
volume of new registrations in Germany in 2015 will also be slightly
up on the previous years level.
We expect demand to remain level year-on-year in the Central
and Eastern European markets (excluding Russia). Given the very
sluggish macroeconomic development in Russia during the
reporting period and the sanctions relating to the political crisis, we
anticipate that the market volume in 2015 will decline.
Sales in the US market are forecast to rise sharply in 2015 on
the back of strong demand for energy-efficient vehicles and the
resulting higher demand for replacement vehicles in the heavy
trucks segment.
We are forecasting significantly weaker trends year-on-year in
the Brazilian market in 2015 owing to the still fragile macroeconomic environment and the austerity measures introduced by
the government, which have resulted in less subsidized financing
being available for automotive industry products, among other
things.
Sales in China, the worlds largest truck market, are likely to
remain almost level with the previous year in 2015. In India, on the
other hand, we believe that the change of government in May 2014
will create further investment incentives from infrastructure
projects, among other things. These will probably lead to a substantial year-on-year increase in the market volume in 2015.

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interest rate further over the course of the year. In light of further
expansionary monetary policy measures in the eurozone, we
therefore consider it unlikely that interest rates will rise
significantly in 2015. In the USA and the UK, however, we can
expect to see a moderate increase in interest rates. For the period
2016 to 2019, we anticipate a gradual rise in interest rates.

We expect that the markets for power engineering will continue to

record an increase in overall demand in the period 2016 to 2019.
DEMA N D FOR FI NA NCIA L SERVIC ES

We assume that automotive financial services will continue to grow

in importance worldwide in 2015. We expect demand for financial
services to increase more strongly in those emerging markets in
which market penetration is currently low, such as China. In
regions with developed automotive finance markets, there will be a
further shift in the offering towards enabling mobility at a manageable total cost. This will see integrated end-to-end solutions, comprising service modules such as insurance and innovative packages
of services, and new mobility offerings like carsharing becoming
increasingly important. We also expect this trend to continue in the
period 2016 to 2019.
We anticipate that demand for financial services in the midsized and heavy commercial vehicles segment will gain momentum
in the emerging economies, especially where financing solutions
support vehicle sales and are thus an essential component of the
sales process. In the developed markets, we believe there will be
greater demand for cost-optimized services in 2015, a trend that
will likewise continue in the period 2016 to 2019.

COMMO DITY PR I C E TR E N D S

Many commodity prices decreased in 2014. This was principally

due to excess supply, but also to weaker economic signals from
China and the strong US dollar. Assuming somewhat stronger
growth in the global economy, we expect prices of most exchangetraded raw materials in 2015 to fluctuate around the current level.
Provided there is a further recovery, we believe that commodity
prices will rise in the period 2016 to 2019.
N EW MODELS I N 2015

The Volkswagen Group will systematically press ahead with its

model initiative in 2015, modernizing and expanding its offering by
introducing attractive new vehicles. Priority will always be given to
what our customers want. We are also successively enhancing our
product portfolio by adding vehicles equipped with alternative drive
systems, i.e. gas and electric versions.
After launching more vehicles that run on electric power the
e-Golf and the plug-in hybrid model Golf GTE in 2014, we will
expand this range in 2015 by adding the Passat GTE with a plug-in
hybrid drive. Other product innovations from the Volkswagen
Passenger Cars brand will be the robust Passat Alltrack and the
successor to the versatile Touran. The Jetta GLI, the Jetta Hybrid
and the Sharan will be upgraded. In China, the new Lamando fourdoor coupe that has been specially developed for the Chinese
market and the Gran Santana will be introduced in 2015. Furthermore, the popular notchback saloons Sagitar, New Lavida and New
Bora will be upgraded, as will the Gran Lavida estate.
In 2015, the Audi brand will roll out the new TT Roadster and
the two sporty versions TTS Coupe and TTS Roadster. Moreover,
new generations of the A4 Saloon, A4 Avant, RS3 Sportback, R8
Coupe and Q7 will soon be launched; the latter will also be available
as a plug-in hybrid TDI e-tron.
From 2015, the new edition of the Fabia Combi will also be
available from the Czech brand KODA; this will once again set
standards in its class with its boot space. In addition, the dynamic
Octavia RS and the new generation of the Superb will be available
both as a hatchback and as an estate.
The SEAT brand will expand the successful Leon family in 2015
with the classy Leon ST Cupra and will upgrade the Toledo, the
Alhambra and the Ibiza family.

E XC H A N G E R AT E T R E N D S

The global economy gained a little momentum in 2014. The US

Federal Reserves trimming of its bond-buying program led to an
increased inflow of capital in the dollar area. This in turn
substantially impacted exchange rates, leading to considerable
volatility. After comparative stability in the first half of 2014, the
value of the euro fell significantly against the US dollar and the
Chinese renminbi as the year progressed. From the beginning of
the year, sterling proved to be more robust than the single currency.
The Russian ruble depreciated progressively up to the end of the
year. For 2015, we expect euro exchange rates against the US dollar,
Chinese renminbi, sterling and other key currencies to be relatively
stable, despite continuing high volatility in the financial markets.
The expectation is that the Russian ruble will remain weak.
However, there is still an event risk defined as the risk arising
from unforeseen market developments. We currently assume that
this trend will continue in the period 2016 to 2019.
I N T E R E ST R AT E T R E N D S

Interest rates remained extremely low in fiscal 2014 due to the

expansionary monetary policy many countries are still pursuing and
the challenging overall economic environment. While it became
apparent in the USA and the UK that the extremely loose monetary
policy was drawing to an end, the European Central Bank cut its key

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The Volkswagen Passenger Cars brand has consolidated its holistic

ecological sustainability policy in its Think Blue. concept. This not
only combines innovative technology and solutions such as the
BlueMotion technologies, but also offers customers recommendations for reducing emissions and consumption, such as tips and
training on how to save fuel. In addition, our BlueMotion models
are setting standards for consumption and emission reductions
through their efficiency technologies such as start-stop systems,
brake energy recuperation and aerodynamic and tire rolling
resistance optimization. Other Group brands such as KODAs
GreenLine model range and SEATs ECOMOTIVE models also make
use of this technology. Audi offers its own ultra-high efficiency
models.

In 2015, Porsche will expand its 911 series with the extreme super
sports car 911 GT3 RS and the dynamic Targa 4 GTS. On top of this,
the new version of the 981 Spyder (Boxster Spyder), the Macan GTS
and the Cayman GT4 will be launched in the market. There will be
product upgrades in the 911 and Cayenne series.
Bentley will update the Continental GT and the Continental
GTC Convertible in 2015.
Super sports car manufacturer Lamborghini is expanding the
Huracn family with three new models, including two versions of
the Huracn Spyder. Two new versions of the Aventador will also be
launched.
In 2015, Volkswagen Commercial Vehicles will introduce the
sixth generation of the versatile, popular Multivan/Transporter.
The Caddy, an all-rounder, will be upgraded.
Ducatis rollout of the Icon version of the new Scrambler in
2014 will be followed in 2015 by the Urban, Enduro, Classic and
Full Throttle versions.

ST R AT E G I C S A L E S F O C U S

The multibrand structure, comprising largely independent brands

that nevertheless achieve maximum synergies, is one of the
defining features of the Volkswagen Group. The structures in the
Group have been designed for managing a multibrand organization.
To facilitate the entry into new markets for more Group brands,
we will further expand our multibrand structure in the growth
markets in particular. We will also sharpen our customer focus
across all sales levels and in customer service, for which we are
continually enhancing employee qualifications in addition to
optimizing our processes and systems to reflect changing customer
demands and markets. The focus of our sales strategy remains the
same the integrated marketing of new and used vehicles, financial
and other services, as well as genuine parts and accessories.

PLANNED PRODUCT MEASURES

The Volkswagen Groups goal is to offer consistently efficient and

carbon-optimized mobility, based on both conventional and alternative drive technologies, so as to live up to its responsibilities with
respect to sustainability. Given the increasingly strict exhaust and
emission standards and the fact that vehicle taxation is becoming
more and more CO2-dependent, vehicle CO2 emissions play an
important role in vehicle purchases. Volkswagen is therefore
continuing to focus in depth on developing ever more efficient drive
technologies, thus extending its solid position in the area of
innovative environmentally friendly mobility.
We will continue to drive forward the issues of downsizing and
zero emissions in our products in the coming years. Downsizing
increases material and energy efficiency by reducing drivetrain
sizes while retaining their original performance. We are expanding
our e-mobility operations in the form of both hybrids and purely
electric drives on the basis of our in-depth research. Where alternative fuels are concerned, the Volkswagen Group is focusing on
environmentally friendly natural gas drive systems. The MQB can
be used to introduce this technology into vehicles spanning
different brands and classes. Our current and future projects are
improving the Volkswagen Groups environmental footprint on an
ongoing basis.
The Volkswagen Groups many different concepts underscore
its brands high level of development and diversification expertise.

B U I L D I N G A F I R ST- C L A S S T E A M

Only a top team can deliver the excellence that is necessary for
Volkswagen to become number one in international automotive
production, which is why, more than ever, we will nurture the
development of all employees.
Our goal for the next few years is to increase our employees
already high level of expertise and problem-solving skills. Vocational training and a university degree are the basis for professional
development in the vocational groups at Volkswagen. Employees
then obtain further qualifications throughout their working lives.
An important pillar of this strategy is the transfer of knowledge and
experience by experts to other staff. Qualifications are provided in
the form of dual vocational training and classroom education and
closely integrate theoretical and practical forms of learning.

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INVESTMENT AND FINANCIAL PLANNING 2015 to 2019 IN THE AUTOMOTIVE DIVISION

billion

Gross cash flow 123.6

Cash flows from

operating activities

Cash flows from investing

activities attributable to
operating activities

Change in working capital 1.8

Capitalized
development costs 21.9

Capex 64.3

Other 0.5

Surplus 36.2
Net cash flow

10

20

30

40

50

60

70

80

90

100

110

120

130

as well as on modernizing the range of light commercial vehicle

models. A parallel focus will be on new vehicles and successor
models in almost all vehicle classes, which will be based on the
modular toolkit technology and the related components. This will
allow us to systematically continue our model rollout with a view to
tapping new markets and segments. In the area of drivetrain
production, we will launch new generations of engines offering
improved performance and lower fuel consumption and emission
levels, while at the same time driving forward the development of
hybrid and electric drives.
In addition, Volkswagen will make cross-product investments of
23.0 billion over the next five years, primarily in environmentally
friendly production. These will include, for example, investments to
expand capacity, a new plant in Poland for production of the Crafter
and the new Audi manufacturing facility in Mexico. As a result
of our high quality targets and our commitment to continuous
improvement of our production processes, investments in our press
shops and paintshops are also necessary. Non-production-related
investments are mainly planned for the areas of development,
quality assurance, sales, genuine parts supply and information
technology.

I N V E STM E N T A N D F I N A N C I A L P L A N N I N G

In our current planning, investments of a total of 85.6 billion will

be made in the Automotive Division in the period from 2015 to
2019. Investments in property, plant and equipment, investment
property and intangible assets, excluding capitalized development
costs (capex), will account for 64.3 billion, more than half of which
(roughly 56%) will be in Germany alone. The ratio of capex to sales
revenue in the period from 2015 to 2019 will be at a competitive
level of 6 7%. Besides capex, investing activities will include additions of 21.9 billion to capitalized development costs. Among other
things, these reflect upfront expenditures in connection with
compliance with environmental standards and the extension and
updating of our model range. The investments in new facilities and
models, as well as in the development of alternative drives and
modular toolkits, are laying the foundations for profitable, sustainable growth at Volkswagen. These investments also include
commitments arising from decisions taken in previous fiscal years.
At 41.3 billion (roughly 64%), the majority of the total capex in
the Automotive Division will be spent on modernizing and
extending the product range for our brands. The spotlight will be on
the expansion of the SUV range, especially in the A and A0 segments,

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42% of the total capital requirements of 97.7 billion will be

financed from gross cash flow. As is common in the sector, the
remaining funds needed will be met primarily through established
money and capital market debt issuance programs and customer
deposits from the direct banking business.

We intend to finance our investments in the Automotive Division

using internally generated funds and expect cash flows from
operating activities to amount to 121.8 billion over the 2015 to
2019 planning period. This means that the funds generated are
expected to exceed the Automotive Divisions investment requirements by 36.2 billion, further improving our liquidity position. We
expect net cash flow in the Automotive Division to be moderately
lower in 2015 than in the prior year, but it will nevertheless make a
significant contribution to strengthening the Groups financial
position.
These plans are based on the Volkswagen Groups current
structures. They do not take into account the possible settlement
payable to other shareholders associated with the control and profit
and loss transfer agreement with MAN SE. Our joint ventures in
China are not consolidated and are therefore also not included in
the above figures. These joint ventures will invest a total of 22.0
billion in new production facilities and products in the period from
2015 to 2019 and will finance these investments from the companies own funds.
We are planning to invest 2.8 billion in the Financial Services
Division from 2015 to 2019. We expect the growth in lease assets
and in receivables from leasing, customer and dealer financing to
lead to funds tied up in working capital of 94.9 billion. Roughly

TA R G E T S F O R VA L U E - B A S E D M A N A G E M E N T

Based on long-term interest rates derived from the capital market

and the target capital structure (fair value of equity to debt = 2:1),
the minimum required rate of return on invested capital defined for
the Automotive Division remains unchanged at 9%. We again
clearly exceeded the minimum required rate of return in the
reporting period, with a return on investment (ROI) of 14.9% (see
also pages 109 and 111). An increase in invested capital resulting
from greater investment in new models and production facilities, as
well as the development of alternative drive systems and modular
toolkits, will have a dampening effect on future returns. Nevertheless, we expect that our return will continue to be well in excess
of the minimum required rate of return. Under our Strategy 2018,
our medium-term goal is a return on investment of more than 16%
in the Automotive Division, which is significantly above the minimum required rate of return.

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products and innovations they need, sustainably strengthening our

competitive position in the process. To achieve that goal, we will
extend our customer focus across all sales levels and in customer
service.
We expect that the Volkswagen Group will moderately increase
deliveries to customers year-on-year in 2015 in a persistently challenging market environment.
The difficult market environment, fierce competition, interest
rate and exchange rate volatility, and fluctuations in raw material
prices all pose challenges. We anticipate a positive effect from the
efficiency programs implemented by all brands and, increasingly,
from the modular toolkits.
Depending on the economic conditions, we expect 2015 sales
revenue for the Volkswagen Group and its business areas to
increase by up to 4% above the prior-year figure. However, economic trends in Latin America and Eastern Europe will need to be
continuously monitored in the Commercial Vehicles/Power Engineering Business Area.
In terms of the Groups operating profit, we anticipate an
operating return on sales of between 5.5% and 6.5% in 2015 in
light of the challenging economic environment. The operating
return on sales is expected to be in the 6.0% to 7.0% range in the
Passenger Cars Business Area and between 2.0% and 4.0% in the
Commercial Vehicles/Power Engineering Business Area. For the
Financial Services Division, we are forecasting an operating profit
at the prior-year level.
At Group level, we are aiming to achieve a sustainable return on
sales before tax of at least 8% by 2018 at the latest.
In the Automotive Division, the ratio of capex to sales revenue
will fluctuate around a competitive level of 6 7% in 2015. The
return on investment (ROI) will be below the prior-year level due to
the extensive investment program, but still significantly above our
minimum required rate of return of 9%. Net cash flow will probably
be moderately lower than in the previous year, but will nevertheless
make a significant contribution to strengthening the Groups finances. Our goal is also to maintain our positive rating compared with
the industry as a whole and to continue our solid liquidity policy.
We are working to make even more focused use of the strengths
of our multibrand group by constructing new plants and continuously developing new technologies and toolkits. We will successfully meet the challenges of today and tomorrow thanks to a firstrate team, which delivers excellence and ensures the quality of our
innovations and products at the highest level. Disciplined cost and
investment management and the continuous optimization of our
processes remain integral elements of the Volkswagen Groups
Strategy 2018.

S U M M A RY O F E X P E C T E D D E V E L O P M E N T S

The Volkswagen Groups Board of Management expects the global

economy to record slightly stronger growth in 2015 than in the
previous year, despite some uncertainties. The financial markets
still entail risks resulting above all from the strained debt situation
of many countries. In addition, growth prospects are being hurt by
geopolitical tensions and conflicts. The emerging economies of Asia
will probably record the highest rates of growth. While we expect to
see an economic upturn in the major industrialized nations, the
rates of expansion will remain moderate.
The automotive industry is highly dependent on global economic developments. We anticipate that competition in the international automotive markets will continue to increase.
We expect trends in the passenger car markets in the individual
regions to be mixed in 2015. Overall, growth in global demand for
new vehicles will probably be slower than in the reporting period.
We anticipate a slight increase in demand for automobiles in
Western Europe and expect to see slight growth in the German
market as well. The Central and Eastern European markets are
likely to be down sharply year-on-year due primarily to the substantial fall in demand in Russia. In North America, we expect last
years positive trend to continue at a noticeably weaker pace. We
assume that the South American passenger car markets will fall
appreciably short of the prior-year level. The markets in the AsiaPacific region that are strategically important for the Volkswagen
Group will probably continue to grow at a slower pace.
Global demand for light commercial vehicles will probably see a
moderate increase in 2015. We expect trends to vary from region to
region.
In the markets for trucks and buses that are relevant for the
Volkswagen Group, new registrations in 2015 will probably be
noticeably lower than in the previous year.
We expect automotive financial services to continue to grow in
importance worldwide in 2015.
The Volkswagen Group is optimally positioned to deal with the
mixed developments in the global automotive markets. The Companys strengths include in particular its unique brand portfolio, its
diverse range of models, its steadily growing presence in all major
world markets and its wide selection of financial services. We offer
an extensive array of attractive, environmentally friendly, cuttingedge, high-quality vehicles for all markets and customer groups.
This ranges from motorcycles through compact, sports and luxury
cars to heavy trucks and buses, and covers almost all segments. The
Volkswagen Groups brands will press ahead with their product
initiative in 2015, modernizing and expanding their offering by
introducing new models. Our goal is to offer all customers the

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Report on Risks and

Opportunities
( C O N TA I N S T H E R E P O R T I N A C C O R D A N C E W I T H S E C T I O N 2 8 9 ( 5 ) O F T H E H G B )

Promptly identifying the risks and opportunities arising from our operating activities and taking a
forward-looking approach to managing them is crucial to our Companys long-term success. A
comprehensive risk management and internal control system helps the Volkswagen Group deal with
risks in a responsible manner.

In this chapter, we first explain the objective and structure of the

Volkswagen Groups risk management system (RMS) and internal
control system (ICS) and describe the system relevant for the
financial reporting process. We then outline the main risks and
opportunities arising in our business activities.

ST R U C T U R E O F T H E R I S K M A N A G E M E N T SY ST E M A N D I N T E R N A L
C O N T R O L SY ST E M AT V O L K SWA G E N

The organizational design of the Volkswagen Groups RMS/ICS is

based on the internationally recognized COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework for
enterprise risk management. Volkswagen has chosen a holistic,
integrated approach that combines a risk management system, an
internal control system and a compliance management system
(CMS) in a single management strategy (governance, risk and compliance strategy). Structuring the RMS/ICS in accordance with the
COSO framework for enterprise risk management ensures that
potential risks are covered in full; opportunities are not captured.
In addition to fulfilling legal requirements, particularly with
regard to the financial reporting process, this approach enables us
to manage significant risks to the Group holistically, i.e. by incorporating both tangible and intangible criteria.
Another key element of the RMS/ICS at Volkswagen is the three
lines of defense model, a basic element required, among others, by
the European Confederation of Institutes of Internal Auditing
(ECIIA). In line with this model, the Volkswagen Groups RMS/ICS
has three lines of defense that are designed to protect the Company
from significant risks occurring.
No significant changes were made to the RMS/ICS compared
with the previous year.

O B J E C T I V E O F T H E R I S K M A N A G E M E N T SY ST E M A N D I N T E R N A L
C O N T R O L SY ST E M AT V O L K SWA G E N

Only by promptly identifying, accurately assessing, and effectively

and efficiently managing the risks and opportunities arising from
our business activities can we ensure the Volkswagen Groups
sustainable success and the systematic implementation of our
Strategy 2018. The Volkswagen Groups RMS/ICS aims to identify
potential risks at an early stage so that suitable countermeasures
can be taken to avert the threat of loss to the Company, and any risks
that might jeopardize its continued existence can be ruled out.
Uniform Group principles are used as the basis for managing
risks in a transparent and appropriate manner. These include
> promoting a culture of openness with regard to risks
> aligning the RMS/ICS with corporate goals
> weighing up risks and opportunities so as to be able to leverage
opportunities where the related risks are transparent and
manageable
> complying with rules (compliance, see also page 56)
> ensuring the adequacy of the RMS/ICS in relation to the nature,
scope and complexity of, as well as the risks involved in, the
specific business activities and the business environment and
> regularly reviewing the effectiveness and efficiency of the
RMS/ICS.

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year sends standardized surveys on the risk situation and the

effectiveness of the RMS/ICS to the material Group companies and
units worldwide (standard GRC process). The feedback is used to
update the overall picture of the potential risk situation and assess
the effectiveness of the system.
Each material systemic risk is assessed using the expected
likelihood of occurrence and various risk criteria (financial and
nonfinancial). In addition, the risk management and control
measures taken are documented at management level. This means
that risks are assessed in the context of any risk management
measures, i.e. in a net analysis. In addition to strategic, operational
and reporting risks, risks arising from potential compliance
violations are also integrated into this process. Moreover, the
effectiveness of key risk management and control measures is
tested and any weaknesses identified in the process are reported
and rectified.
All Group companies and units selected from among the
entities in the consolidated Group on the basis of materiality and
risk criteria including the Porsche brand were subject to the
standard GRC process in fiscal year 2014. Only the MAN and Scania
brands were excluded.
The MAN brand already had its own central processes for
capturing risks at the time it was consolidated and is included in the
Volkswagen Groups annual reporting. The MAN brands integration into the standard GRC process is expected to be largely
completed in fiscal year 2015.
The Scania brand, which has been consolidated since July 22,
2008, has not yet been included in the Volkswagen Groups risk
management system due to various provisions of Swedish company
law. According to Scanias corporate governance report, risk
management and risk assessment are integral parts of corporate
management. Risk areas at Scania are evaluated by the Controlling
department and reflected in the financial reporting.

THE THREE LINES OF DEFENSE MODEL

S U P E R V I S O RY B OA R D

B OA R D O F M A N AG E M E N T

1st

2 nd

3 rd

line of defense

line of defense

line of defense

Companies
and business units

Group Governance,
Risk and Compliance

Group Internal
Audit

Operational risk
management
including compliance and reports

Standards for and

coordination of
effectiveness of
RMS/ICS and CMS;
overall report

Audit of and
reports on RMS/ICS
and CMS

First line of defense: operational risk management

The primary line of defense comprises the operational risk

management and internal control systems at the individual Group
companies and business units. The RMS/ICS is an integral part of
the Volkswagen Groups structure and workflows. Events that may
give rise to risk are identified and assessed locally in the divisions
and at the investees. Countermeasures are introduced immediately,
their effects are assessed and the information is incorporated into
the planning in a timely manner. The results of the operational risk
management process are incorporated into budget planning and
financial control on an ongoing basis. The targets agreed in the
budget planning rounds are continually reviewed in revolving
planning updates.
At the same time, the results of risk mitigation measures that
have already been taken are incorporated into the monthly
forecasts on further business development in a timely manner. This
means that the Board of Management has access to an overall
picture of the current risk situation via the documented reporting
channels during the year as well.
The minimum requirements for the operational risk management and internal control system are set out for the entire Group in
uniform guidelines. These also include a process for the timely
reporting of material risks.

Third line of defense: checks by Group Internal Audit

Group Internal Audit helps the Board of Management to monitor

the various divisions and corporate units within the Group. It
regularly checks the risk early warning system and the structure
and implementation of the RMS/ICS and the CMS as part of its
independent audit procedures.
R I S K E A R LY WA R N I N G SY ST E M I N L I N E W I T H T H E KO N T R A G

The Companys risk situation is ascertained, assessed and documented in accordance with the requirements of the Gesetz zur
Kontrolle und Transparenz im Unternehmensbereich (KonTraG
German Act on Control and Transparency in Business). The
requirements for a risk early warning system are met through the
elements of the RMS/ICS described above (first and second lines of
defense). Independently, the external auditors check the processes
and procedures implemented for this as well as the adequacy of the
documentation on an annual basis. The plausibility and adequacy
of the risk reports are examined on a test basis in detailed
interviews with the divisions and companies concerned that also

Second line of defense: capturing systemic risks using the

standard Governance, Risk and Compliance process

In addition to the units ongoing operational risk management, the

Group Governance, Risk and Compliance (GRC) department each

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T H E R I S K M A N A G E M E N T A N D I N T E G R AT E D I N T E R N A L C O N T R O L

A N N UA L S TA N DA R D G OV E R N A N C E , R I S K A N D CO M P L I A N C E P R O C E S S

SY ST E M I N T H E C O N T E X T O F T H E F I N A N C I A L R E P O R T I N G P R O C E S S

The accounting-related part of the RMS/ICS that is relevant for the

financial statements of Volkswagen AG and the Volkswagen Group
comprises measures that are intended to ensure the complete,
accurate and timely transmission of the information required for
the preparation of the financial statements of Volkswagen AG, the
consolidated financial statements and the combined Group
management report. These measures are designed to minimize the
risk of material misstatement in the accounts and in the external
reporting.

Selection
of companies
and units

Follow-up activities
targeting weaknesses

Data ascertained /
assessed in the units

Main features of the risk management and integrated internal

control system relevant for the financial reporting process

Reporting

The Volkswagen Groups accounting is organized along decentralized lines. For the most part, accounting duties are performed by
the consolidated companies themselves or entrusted to the Groups
shared service centers. The audited financial statements of
Volkswagen AG and its subsidiaries prepared in accordance with
IFRSs and the Volkswagen IFRS accounting manual are transmitted
to the Group in encrypted form. A standard market product is used
for encryption.
The Volkswagen IFRS accounting manual, which is prepared
using external expert opinions in certain cases, ensures the
application of uniform accounting policies based on the requirements applicable to the parent. In particular, it includes more
detailed guidance on the application of legal requirements and
industry-specific issues. Components of the reporting packages
required to be prepared by the Group companies are also set out in
detail there and requirements established for the presentation and
settlement of intragroup transactions and the balance reconciliation process that builds on this.
Control activities at Group level include analyzing and, if
necessary, adjusting the data reported in the financial statements
presented by the subsidiaries, taking into account the reports
submitted by the auditors and the outcome of the meetings on the
financial statements with representatives of the individual companies. These discussions address both the reasonableness of the
single-entity financial statements and specific significant issues at
the subsidiaries. Alongside reasonableness reviews, control
mechanisms applied during the preparation of the single-entity and
consolidated financial statements of Volkswagen AG include the
clear delineation of areas of responsibility and the application of the
dual control principle.

Documentation
of effectiveness
in the units

involve the external auditors. The latter assessed our risk early
warning system based on this volume of data and established that
the risks identified were presented and communicated accurately.
The risk early warning system therefore meets the requirements of
the KonTraG.
In addition, the Financial Services Division is subject to
scheduled inspections as part of the audit of the annual financial
statements and unscheduled inspections, in particular by the
European Central Bank (ECB) and by the Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFin the German Federal Financial
Supervisory Authority) within the meaning of section 44 of the
Kreditwesengesetz (KWG German Banking Act), as well as
inspections by the Prfungsverband deutscher Banken (Auditing
Association of German Banks).
Monitoring the effectiveness of the risk management system and
the internal control system

The RMS/ICS is regularly optimized as part of our continuous

monitoring and improvement processes. In the process, equal
consideration is given to both internal and external requirements
such as the provisions of the Bilanzrechtsmodernisierungsgesetz
(BilMoG German Accounting Law Modernization Act). External
appraisers assist in the continuous enhancement of our RMS/ICS
on a case-by-case basis. The objective of the monitoring and
improvements is to ensure the effectiveness of the RMS/ICS. The
results culminate in both regular and event-driven reporting to the
Board of Management and Supervisory Board of Volkswagen AG.

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The Volkswagen consolidation and corporate management system

(VoKUs) enables the Volkswagen Group to consolidate and analyze
both Financial Reportings backward-looking data and Controllings budget data. VoKUs offers centralized master data
management, uniform reporting, an authorization concept and
maximum flexibility with regard to changes to the legal environment, providing a future-proof technical platform that benefits
Group Financial Reporting and Group Controlling in equal
measure. To verify data consistency, VoKUs has a multi-level
validation system that primarily checks content plausibility between
the balance sheet, the income statement and the notes.

The economic performance of some emerging economies is being

overshadowed primarily by overindebtedness, reliance on capital
inflows and social tensions. Corruption, inadequate government
structures and a lack of legal certainty also pose risks.
Geopolitical tensions and conflicts are a further major risk to
the performance of individual economies or regions. As the global
economy becomes increasingly interconnected, it is also vulnerable
to local developments. Any escalation of the conflicts in Eastern
Europe, the Middle East, or North Africa, for example, could disrupt
the global energy and commodity markets. The same goes for
armed conflicts, terrorist activities, or the spread of infectious
diseases, which may prompt unexpected, short-term responses
from the markets.
Overall, we consider the probability of a global recession to be
low. Due to the risk factors mentioned, however, the possibility of a
decline in global economic growth or a period of below-average
growth rates cannot be ruled out.
The macroeconomic environment may also give rise to opportunities for the Volkswagen Group if actual developments differ in a
positive way from expected developments.

R I S K S A N D O P P O RT U N I T I E S

Sector-specific risk and market opportunities

In this section, we outline the risks and opportunities that arise in

the course of our business activities. We have grouped them into
categories. Unless explicitly mentioned, there were no material
changes to the specific risks and opportunities compared with the
previous year.
We use competitive and environmental analyses and market
studies to identify not only risks but also opportunities with a
positive impact on the design of our products, the efficiency with
which they are produced, their success in the market and our cost
structure. Risks and opportunities that we expect to occur are
already reflected in our medium-term planning and our forecast.
The following therefore reports on internal and external developments as risks and opportunities that may result in a negative or
positive deviation from our forecast.

The growth markets of Asia, South America, and Central and

Eastern Europe are particularly important for the Volkswagen
Group in terms of the global trend in demand for passenger cars
and commercial vehicles. Although these markets harbor considerable potential, the underlying conditions in some of the
countries in these regions make it difficult to increase unit sales
figures there. Some have high customs barriers or minimum local
content requirements for domestic production, for example. In
addition, in fiscal year 2014, the market trend in Russia was
depressed by the political crisis and its economic effects. In South
America, structural deficits and social tensions had a negative
impact. Restrictions on registrations could enter into force in
further Chinese metropolitan areas in future. Furthermore, a
global economic slowdown could impact negatively on consumer
confidence in some of these countries. Equally, we cannot entirely
rule out the possibility of freight deliveries being shifted from trucks
to other means of transport and of demand for the Groups
commercial vehicles falling as a result.
At the same time, if the economic and regulatory situation
permits, there are opportunities for faster growth above and
beyond current projections in emerging markets where vehicle
densities are still low. The demand that built up in some established
markets during the crisis could also lead to a stronger recovery in
these markets should the economic environment ease more quickly.

The Group management report is prepared in accordance with

the applicable requirements and regulations centrally but with
the involvement of and in consultation with the Group units and
companies.
In addition, the accounting-related internal control system is
independently reviewed by Group Internal Audit in Germany and
abroad.
Integrated consolidation and planning system

Macroeconomic risks and opportunities

We believe that the risks to continued global economic growth lie

primarily in structural deficits, which pose a threat to the performance of many industrialized nations and some emerging economies. In the eurozone, a sustained economic recovery is being
hindered in particular by the situation of numerous financial
institutions whose stability and ability to withstand a crisis are still
not assured. Persistently high private- and public-sector debt in
many places is also clouding the outlook for growth and may cause
markets to respond negatively. Declines in growth in key countries
and regions often have an immediate impact on the state of the
global economy and therefore pose a central risk.

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Below, we outline the market opportunities for the Volkswagen

Group. We see the greatest potential for growth in the markets of
the Asia-Pacific region and in North America.

Price pressure in established automotive markets due to high

market saturation is a particular challenge for the Volkswagen
Group as a supplier of volume and premium models. As the global
economy is still under strain, competitive pressures are likely to
remain high in the future. Some manufacturers may respond by
offering incentives in order to meet their sales targets, putting the
entire sector under additional pressure, particularly in Western
Europe, the USA and China.
Western Europe is one of our main sales markets. A drop in
prices due to the economic climate triggered by falling demand in
this region would have a particularly strong impact on the Companys earnings. We counter this risk with a clear, customeroriented and innovative product and pricing policy. Outside
Western Europe, overall delivery volumes are broadly diversified
throughout the world. The Chinese market accounts for an
increasing share. We either already have a strong presence in
numerous existing and developing markets or are working hard to
build such a presence. Moreover, strategic partnerships help us to
increase our presence in these countries and regions and cater to
requirements there.
In fiscal year 2014, economic trends varied considerably from
region to region: while the situation in Western Europe stabilized,
China remained on a growth track and the US economy continued
to recover, market conditions in Eastern Europe and South
America deteriorated markedly. The resulting challenges for our
trading and sales companies, such as efficient inventory management and a profitable dealer network, are considerable and are
being met by appropriate measures on their part. However,
financing business activities through bank loans remains difficult.
Our financial services companies offer dealers financing on
attractive terms with the aim of strengthening their business
models and reducing operational risk. We have installed a
comprehensive liquidity risk management system so that we can
promptly counteract any liquidity bottlenecks at the dealers end
that could hinder smooth business operations.
We continue to approve loans for vehicle finance on the basis of
the same cautious principles applied in the past, taking into account
the regulatory requirements of section 25a(1) of the Kreditwesengesetz (KWG German Banking Act).
Volkswagen may be exposed to increased competition in
aftermarkets for two reasons in particular: firstly, because of the
provisions of the block exemption regulations, which have been in
force for after-sales service since June 2010, and, secondly,
because of the amendments included in EU Regulation 566/2011 of
June 8, 2011, which expand independent market participants
access to technical information.
In addition, the European Commission is currently evaluating
the market with regard to existing design protection. If design
protection for visible genuine parts were to be abolished as a result,
this could adversely affect the Volkswagen Groups genuine parts
business.

China

China, the largest market in the Asia-Pacific region, saw further

growth in the reporting period. Here, demand for vehicles will
continue to increase in the coming years due to the need for
individual mobility. This growth will probably decelerate and shift
from the large cities on the coast to the countrys interior. To be able
to leverage the considerable opportunities offered by this market
and defend our strong market position in China over the long term,
we are continuously expanding our product range to include models
that have been specially developed for this market. We are further
expanding our production capacity in this growing market through
additional production facilities.
India

The political and economic situation in India stabilized following

the elections in 2014. After declining in the previous year, vehicle
markets also recovered slightly. High inflation continues to weigh
on demand, however. We expect the Indian market to continue to
recover in the coming years. The Group is currently consolidating
its activities in this difficult environment. Despite the current
situation, India is still a strategically important market of the future
for the Group.
ASEAN

The automotive markets in the ASEAN economic area are volatile,

but offer substantial growth opportunities in the aggregate. The
Volkswagen Group is working successively to achieve long-term
penetration of these markets. High price sensitivity means that
having a local manufacturing operation in the region is a condition
for a competitive offering. Together with our partners in Malaysia
and Indonesia, we assemble models from the Volkswagen Passenger Cars, Audi and Volkswagen Commercial Vehicles brands locally.
We are also investigating and evaluating opportunities for this in
additional countries in the region. Independent of this, we are
driving forward improvements to local sales structures.
North America

The US vehicle market saw noticeable growth again in 2014 thanks

to the encouraging economic trend and favorable financing conditions. Market growth should now slow, however, as the demand
for replacement vehicles that had built up as a result of the crisis
has largely been met. North America remains a growth region for
the Volkswagen Group. In the United States, Volkswagen Group of
America is systematically pursuing our strategy of becoming a fullfledged volume supplier. Together with an engine plant, the
development of additional production capacity in the region will

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stricter requirements with respect to the reliability and availability

of plant, as well as the increase in environmental compatibility and
efficient operation, together with the large number of engines and
plants in operation, will provide the basis for profitable, long-term
growth.
As part of the capital goods industry, the Power Engineering
Business Area is subject to fluctuations in the investment climate.
Even small changes in growth or growth forecasts, for example due
to geopolitical uncertainties or volatile commodities markets, can
lead to significant changes in demand or can result in existing
orders being cancelled. Among other things, flexible production
concepts enable us to counter the significant economic risks.

allow the Group to better serve the market in the future. The Group
is also pressing forward with additional products tailored specifically for the US market, for example a large SUV.
Brazil

After a promising start, the economic situation in Brazil deteriorated in the course of the reporting period, which also impacted
negatively on vehicle markets. Vehicles became more expensive as
inflation and interest rates rose. The anticipated recovery failed to
materialize and, instead, the economic outlook continued to
worsen. We expect the downturn in the vehicle market to persist in
2015. The growing number of automobile manufacturers with local
production has resulted in a sharp increase in price pressure and
competition. The Brazilian market plays a key role for the Volkswagen Group. To strengthen our competitive position here, we offer
vehicles that have been specially developed for this market and
locally produced, such as the Gol and the Fox.

Research and development risk

We conduct extensive trend analyses, customer surveys and scouting activities so as to adequately reflect our customers requirements during product development. In this way, we ensure that we
identify trends at an early stage and examine their relevance for our
customers in good time.
We counter the risk that it may not be possible to develop products or modules within the specified timeframe, to the required
quality standards, or in line with cost specifications by continuously
and systematically monitoring the progress of all projects and
increasingly analyzing third-party industrial property rights,
including in relation to communication technologies. We regularly
compare this progress with the projects original targets; in the
event of variances, we introduce appropriate countermeasures in
good time. Our end-to-end project organization supports effective
cooperation among all areas involved in the process, ensuring that
specific requirements are incorporated into the development process as early as possible and that their implementation is planned in
good time.

Russia

Russia has the potential to grow into one of the largest automotive
markets in the world. However, its heavy reliance on currently
lower oil revenues and the weakness of the ruble led to a significant
decline in the overall market in 2014. Demand for vehicles was also
impacted by the political crisis and the related sanctions imposed by
the EU and the USA. The market remains of strategic importance
for the Volkswagen Group, which is why we are working intensively
there.
Middle East

Despite economic and political instability, the Middle East region

offers growth opportunities. We are leveraging the potential for
sustainable growth without operating our own production facilities
by offering a range of vehicles that has been specifically tailored to
this market. Optimized sales channels are also intended to help lift
our market share.

Opportunities arising from the Modular Transverse Toolkit

The Modular Transverse Toolkit (MQB) and the Modular Production Toolkit (MPB) enable us to cut both development costs and
the necessary one-time expenses and manufacturing times, as well
as to leverage expenditure over several vehicle generations. The
toolkits also allow us to produce different models in different
quantities and even from different brands using one and the same
plant in a single facility. This enables us to deploy our capacity more
flexibly across the entire Group and to achieve efficiency gains.
In addition to conventional petrol and diesel engines, the MQB
also affords us the opportunity to integrate alternative drivetrains,
such as gas, hybrid, or electric drives. Previously, individual,
vehicle-specific adaptations were necessary. The MQB has created
an extremely flexible vehicle architecture that permits dimensions

Power Engineering

The underlying global economic trends will continue, such as

sustained economic growth, a greater international division of
labor and resulting increase in global transportation routes and
volumes, growing demand for energy, the increasing requirement
for capital spending by the oil and gas industry, and forces for
innovation powered by trends in global climate policy.
We are working systematically to leverage these market opportunities at global level. In the medium term, significant potential
can be leveraged by enhancing the after sales business through new
products and in expanding the service network. Going forward,

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Short-term fluctuations in customer demand for specific equipment features of our products and the decreasing predictability of
those fluctuations may lead to supply bottlenecks. We minimize this
risk, among other things, using a revolving process in which we
compare our available resources against different future demand
scenarios. If we identify potential bottlenecks in the supply of materials, we can introduce countermeasures with sufficient lead time.
Because of vehicle projects, capacity is planned several years in
advance on the basis of expected sales trends. These are subject to
market changes and generally entail a degree of uncertainty. If
forecasts are too optimistic, there is a risk that capacity will not be
fully utilized. Forecasts that are too pessimistic pose a risk of undercapacity, as a result of which it may not be possible to meet customer
demand.
Due to the growing range of models and shorter product life
cycles, new vehicle start-ups are an ever more frequent occurrence
at our sites worldwide. Because of the complexity of processes and
technical systems, there is a possibility that vehicle deliveries may
be delayed. We address this by drawing on experience of past startups and promptly identifying weaknesses so as to ensure production volumes and quality standards are met during our new vehicle
start-ups throughout the Group.
We use the TPM (Total Productive Maintenance) method at our
production facilities in order to methodically and permanently
prevent downtime, lost output, rejects and reworking. TPM is a
continuous process involving the entire workforce. Round-theclock maintenance of the technical facilities means that they are
always operational and guaranteed to function reliably.

determined by the concept such as the wheelbase, track width,

wheel size and seat position to be harmonized throughout the
Group and deployed flexibly. Other dimensions, for example the
distance between the pedals and the middle of the front wheels, are
always the same and guarantee a uniform system in the front of the
car, enabling synergies to be achieved.
Procurement risks and opportunities

The slowdown in global economic growth in the course of 2014 led

to capacity utilization problems for suppliers in the different
regions, particularly in South America and Russia. In Western
Europe, demand for passenger cars stabilized in 2014; this had a
positive impact on suppliers capacity utilization.
The trend in procurement is to bundle contracts to a greater
extent and to ensure worldwide availability of uniform components.
This is resulting in an increased need for financing and further consolidation in the supply industry. The Volkswagen Groups procurement risk management system therefore assesses suppliers
before they are commissioned to perform projects. Among other
things, the procurement function weighs the risk of there being
insufficient competition if it concentrates on a few financially
strong suppliers when awarding contracts.
In 2014, the Volkswagen Groups supplier base was much more
stable than in past years.
Our modular toolkit strategy enables us to bundle volumes of
vehicle parts and harmonize and synchronize requests for proposals and procurement processes. We systematically enhanced
this strategy in the A0 vehicle class, allowing us to consolidate
worldwide volumes into a single global request. In the process, we
consider regional market requirements with the aim of maximizing
customer satisfaction. This enables us to exploit transregional
synergies while at the same time minimizing start-up risks within
the Volkswagen Group, one-time expenses and internal process costs.
In addition, we have launched an initiative in procurement
called Volkswagen FAST Future Automotive Supply Tracks with a
view to stepping up cooperation with our suppliers. We aim to carry
out innovation and globalization projects faster and in a more
focused manner than before.

Risks arising from long-term production

In the case of large projects, risks may arise that are often only
identified in the course of the project. They may result in particular
from contract drafting errors, miscosting, post-contract changes in
economic and technical conditions, weaknesses in project management, or poor performance by subcontractors. In particular, omissions or errors made at the start of a project are usually difficult to
compensate for or correct and often entail a substantial increase in
costs.
We endeavor to identify such risks at an even earlier stage and
to take appropriate measures to eliminate or minimize them before
they occur by constantly optimizing the project control process
across all project phases and by using a lessons learned process and
regular project reviews. This further reduces risk, particularly
during the bidding and planning phase for large upcoming projects.

Production risk

Developments on the global automotive markets caused production

volumes of several vehicle models to fluctuate at some plants in
2014. We address such fluctuations using a variety of tried-andtested tools, such as flexible working time models. The technical
design of the production network enables us to respond dynamically to changes in demand at the sites. Turntable concepts even
out capacity utilization between production facilities. At multibrand
sites, the number of which is growing in the Group, volatile demand
can also be smoothed across brands.

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Risks arising from changes in demand

Dependence on fleet customer business

Consumer demand is shaped not only by real factors such as

disposable income, but also by psychological factors that are
impossible to plan for.
Households worries about the future economic situation could
result in unexpected buyer reluctance, which could be further
exacerbated by media reports, for example. This is particularly the
case in saturated automotive markets such as Western Europe,
where demand could drop as a result of owners holding on to their
vehicles for longer. In the reporting period, it became evident that
the effects of the eurozone debt crisis have not yet been overcome.
Several automotive markets, particularly in Southern Europe, were
unable to recover from their record lows, even if they did return to
positive growth. We are countering this buyer reluctance with our
attractive range of models and systematic customer orientation.
A combination of buyer reluctance as a result of the crisis and
increases in some vehicle taxes based on CO2 emissions such as
those already formulated in some European countries is driving a
shift in demand towards smaller segments and engines in
individual markets. We counter the risk that such a shift will
negatively impact the Volkswagen Groups earnings by constantly
developing new, fuel-efficient vehicles and alternative drive
technologies, based on our drivetrain and fuel strategy. Automotive
markets around the world are exposed to risks from government
intervention in the form of tax increases, for example, which could
curb private consumption.
Commercial vehicles are capital goods and are therefore
subject to more extreme cyclical fluctuations than occur in the
consumer goods industry. Although production volumes are
significantly lower, the complexity of the trucks and buses range in
fact significantly exceeds that of passenger cars. The priorities for
commercial vehicle customers are overall running costs, vehicle
reliability and the service provided.
MAN Power Engineerings two-stroke engines are produced
exclusively by licensees, particularly in Korea, China and Japan.
Due to volatile demand in new ship construction and heavy
investment by some licensees, there is excess capacity in the market
for marine engines, resulting in risks ranging from a decline in
license revenues through to bad debt losses. There is also a risk that
market share will be lost as a result of Chinese state-owned
licensees merging with competitors. We address these risks by
constantly monitoring the markets, working closely together with
licensees and carefully managing business relationships with them.
This also includes receivables management in order to safeguard
our license revenues.

In fiscal year 2014, the percentage of total registrations in Germany

accounted for by fleet customers rose to 13.3% (12.5%). The
Volkswagen Groups share of this customer segment climbed to
48.4% (47.2%).
In Europe, the Volkswagen Group was able to further extend its
position in this customer segment thanks to its comprehensive
product range and customized support for this target group;
registrations by business fleet customers were up 9.9% year-onyear, while the Groups share rose to 29.2% (28.8%). The fleet
customer business continues to be marked by increasing concentration and internationalization. With its broad product
portfolio, the Group is well positioned to face the growing
importance of the issue of CO2 and the trend towards downsizing.
No default risk concentrations exist for individual corporate
customers.
Quality risk

Right from the product development stage, we aim to prevent

quality problems, or to identify and rectify them at the earliest
possible point, so as to avoid delays to the start of production. As the
use of modular components is steadily increasing thanks to our
modular toolkit strategy, it is very important when defects do occur
to identify and eliminate the cause of the defect as quickly as
possible. We further optimized these processes at our brands and
improved our organizational processes during the reporting period
so that we are able to counter the associated risks effectively.
Growing production volumes, increasing complexity and the
use of the Groups toolkit system mean that the need for high-grade
supplier components of impeccable quality is rising. To ensure the
continuity of production, it is extremely important that our own
plants and our suppliers deliver on time. We ensure long-term
quality and supply capability from the very start of the supply chain
using an internally tested risk management system that we have
introduced at suppliers. By taking these measures, Quality Assurance helps to fulfill customer expectations and consequently to
boost our Companys reputation, sales figures and earnings.
Sustained high demand in the Volkswagen Groups key markets
also presents particular challenges for quality assurance. This issue
is of fundamental importance especially in the Brazilian, Russian,
Indian and Chinese markets, for which we develop dedicated
vehicles and where local manufacturing operations and suppliers
have been established. We analyze the conditions specific to each
market and adapt quality requirements individually. We counter the
local risks we identify by continuously developing effective
measures in cooperation with the central Quality Assurance
function and implementing them locally, thereby minimizing
quality defects from the outset.

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We address the risk of unauthorized access to corporate data by

using firewall and intrusion prevention systems and a dual
authentication procedure. We achieve additional protection by
restricting the allocation of access rights to systems and information
and by keeping backup copies of critical data resources. We use
technical resources that have been tried and tested in the market,
adhering to standards applicable throughout the Company.
Redundant IT infrastructures protect us against risks that occur in
the event of a systems failure or natural or other disaster.
In addition, we continuously take measures to combat
identified and anticipated risks during the software development
process, when protecting the IT infrastructure and also in the
allocation of access rights to systems and data resources. These
preventive measures are taken with the aim of counteracting the
growing intensity and quality of attacks on our IT systems and data
resources at an early stage. Volkswagen also continuously adapts its
risk strategy in light of increasing connectivity between drivers,
vehicles and their surroundings.
Volkswagen supplements its reliable technical protection
against unauthorized access to sensitive data by systematically
providing its employees with information and training. We have
stepped up the Company-wide information security campaign
launched for this purpose in 2012, which covers topics such as how
to handle sensitive data.

Vehicle registration and operation criteria are set and monitored by

national and, in some cases, international authorities. Some
countries also have special, and in some cases new, rules aimed at
protecting customers in their dealings with vehicle manufacturers.
We therefore systematically ensure that the Volkswagen Group
brands and their products fulfill all applicable requirements and
that local authorities receive timely notification of all issues
required to be reported. By doing so, we reduce the risk of customer
complaints, administrative fines and other negative consequences.
Personnel risk

The individual skills and technical expertise of our employees are a

major factor contributing to the Volkswagen Groups success. Our
aim of becoming the top employer in the automotive industry
improves Volkswagens chances of recruiting and retaining the
most talented employees.
Our strategic, end-to-end human resources development
strategy gives all employees attractive training and development
opportunities, with particular emphasis being placed on increasing
technical expertise in the Companys different vocational groups.
By continuously expanding our recruitment tools and boosting
training programs, particularly at our international locations, we
are able to adequately address the challenges posed by growth from
a human resources perspective.
In addition to the standard dual vocational training, programs
such as our StIP integrated degree and traineeship scheme ensure
a pipeline of highly qualified and motivated employees. We counter
the risk that knowledge will be lost as a result of employee fluctuation and retirement with intensive, department-specific training.
We have also expanded our base of senior experts in the Group to
ensure that the valuable knowledge of specialists retiring from
Volkswagen is transferred to other employees.
Participation and codetermination are factors in the Volkswagen Groups success. Employee involvement and motivation are
two sides of the same coin. We aim to maintain a culture of participation at Volkswagen internationally as well. The challenge lies in
crafting labor relations with the many trade unions and stakeholder
representatives worldwide. We have created a framework for this
with our Labor Relations Charter and have pledged our commitment to it.

Environmental protection regulations

The specific emission limits for all new passenger car and light
commercial vehicle models and the fleet targets calculated from the
individual vehicle data for brands and groups in the 28 EU member
states for the period up to 2019 are set out in the EU Regulation
governing CO2 emissions from passenger cars (443/2009/EC) and
the EU Regulation governing light commercial vehicles of up to 3.5
tonnes (510/2011/EU), in effect since April 2009 and June 2011
respectively. The regulations are an important component of
European climate protection legislation and therefore form the key
regulatory framework for product design and marketing by all
vehicle manufacturers operating in the European markets.
From 2012 onwards, the average CO2 emissions of manufacturers new European passenger car fleets may not exceed the
figure of 130 g CO2/km. Compliance with this requirement is being
introduced in stages: 80% of cars had to meet this requirement in
2014 and the entire fleet must meet it in 2015. The EU Regulation
adopted in 2014 (333/2014/EU) states that, from 2021 onwards,
the emissions of European passenger car fleets may be just 95 g
CO2/km.
The EUs CO2 regulation for light commercial vehicles requires
limits to be met from 2014 onwards, with targets being phased in
over the period to 2017: the average CO2 emissions of new regis-

IT risk

At Volkswagen, a global company geared towards further growth,

the information technology (IT) used in all divisions Group-wide is
assuming an increasingly important role. IT risks include unauthorized access to sensitive electronic corporate data as well as
limited systems availability as a consequence of downtime or
natural disasters.

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its technological and financial capabilities, which are reflected,

among other things, in our drivetrain and fuel strategy (see page
149).
The other main EU regulations affecting the automotive
industry include
> EU Directive 2007/46/EC establishing a framework for the
approval of motor vehicles
> EU Directive 2009/33/EC on the promotion of clean and energyefficient road transport vehicles (Green Procurement Directive)
> EU Directive 2006/40/EC relating to emissions from air-conditioning systems in motor vehicles
> The Passenger car energy consumption labeling Directive
1999/94/EC
> The Fuel Quality Directive (FQD) 2009/30/EC updating the fuel
quality specifications and introducing energy efficiency specifications for fuel production
> The Renewable Energy Directive (RED) 2009/28/EC introducing
sustainability criteria
> The Revised Energy Taxation Directive 2003/96/EC updating the
minimum tax rates for all energy products and power.
The implementation of the above-mentioned directives by the EU
member states serves to support the CO2 regulations in Europe. As
well as vehicle manufacturers, they are also aimed at the mineral oil
industry, for example. Vehicle taxes based on CO2 emissions are
having a similar effect; many EU member states have already
incorporated CO2 elements into their rules on vehicle taxation.
Heavy commercial vehicles put into operation from 2014
onwards are already subject to the stricter emission requirements
under the Euro 6 standard in accordance with EU Regulation
595/2009/EC. The EU is also preparing a further CO2 regulation for
heavy commercial vehicles at the same time as the CO2 legislation
for passenger cars and light commercial vehicles. Simply setting an
overarching limit for these vehicles like that in place for passenger cars and light commercial vehicles is just one possible
option for these vehicles and would require an extremely complex
set of rules because of the wide range of variants. With the support
of the European Automobile Manufacturers Association (ACEA),
the European Commission is currently preparing a simulationbased method called VECTO (Vehicle Energy Consumption Calculation Tool), which can be used to determine the CO2 emissions of
heavy commercial vehicles of over 3.5 tonnes based on their typical
use (short- and long-haul trips, service on construction sites and as
municipal vehicles, city buses and coaches). This method is
expected to be the basis for the European Commissions concrete
regulatory proposals, which are anticipated by the end of 2015.
From 2018 onwards, a CO2 declaration is expected to be compulsory for selected vehicle categories (long-haul and regional
distribution vehicles as well as coaches), with the captured data
initially being used for customer information and monitoring
purposes. Further vehicle categories are likely to be included going
forward.

trations in Europe may not exceed the figure of 175 g CO2/km, a

target required to be met by 70% of the fleet in 2014. From 2020
onwards, the limit under the EU Regulation adopted in 2014
(253/2014/EU) is 147 g CO2/km. Like the regulations for passenger
cars, the CO2 regulations for light commercial vehicles provide for
exceptions to be made, for example by offering relief for technical
innovations in the vehicle.
The European Commission intends to set out the CO2 regime
for the period after 2020 by the end of 2015. Politicians are already
discussing reduction targets for the transport sector for the period
to 2050, such as the 60% reduction in greenhouse gas emissions
from 1990 levels cited in the EU White Paper on transport
published in March 2011. It will only be possible to meet these longterm goals by also making extensive use of nonfossil sources of
energy, in particular in the form of renewable electricity.
The European Commission and UNECE (United Nations Economic Commission for Europe) are currently working to introduce
a globally harmonized driving cycle.
A regulation is being drawn up to further reduce nitrogen oxide
and fine particulate emissions and hence improve air quality.
Experts from Volkswagen are involved in this process.
At the same time, regulations governing fleet fuel consumption
are being developed or introduced outside the EU28 as well in
Switzerland, Japan, Taiwan, South Korea, India, Brazil, Mexico,
Canada and Saudi Arabia, for example. The existing regulations in
China for the period 20122015 (Phase III) governing consumption with a target of 6.9 liters/100 km by 2015, will progress to
Phase IV, with a fleet target of 5.0 liters/100 km by 2020 for the
period 20162020. Due to the extension of greenhouse gas
legislation in the USA, uniform fuel consumption and greenhouse
gas rules will continue to apply in all states of the USA in the period
from 2017 to 2025. The law was signed by the US President back in
mid-2012.
The increase in CO2 and consumption regulations means that it
is necessary to use the latest mobility technologies in all key markets
worldwide. Electrified and pure-play electric drives will also
become increasingly common.
The Volkswagen Group closely coordinates technology and
product planning with its brands so as to avoid breaches of emission
limits, which would entail severe sanctions. In principle, the EU
legislation permits some flexibility. For example:
> Excess emissions and emission shortfalls may be offset between
vehicle models
> Emission pools may be formed
> Relief may be provided in the form of credits that are granted for
additional innovative technologies (eco-innovations) contained
in the vehicle and that apply outside the test cycle
> Special rules are in place for small series producers and niche
manufacturers
> Particularly efficient vehicles qualify for super-credits.
Whether the Group meets its targets, however, depends crucially on

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generators have been sold at auction starting in 2013. For

manufacturing industry and certain power generation installations
(e.g. combined heat and power installations), a portion of the
certificates are allocated free of charge on the basis of benchmarks
applicable throughout the EU. The portion of certificates allocated
for free will gradually decrease as the trading period progresses: the
remaining quantities required will have to be bought, and thus paid
for, at auction. Furthermore, installation operators can partly fulfill
their obligation to hold emission allowances using certificates from
climate protection projects (Joint Implementation and Clean
Development Mechanism projects).
In certain (sub-)sectors of industry, there is a risk that production will be transferred to countries outside Europe due to the
amended provisions governing emissions trading (a phenomenon
referred to as carbon leakage). In these cases a consistent
quantity of certificates will be allocated free of charge for the period
from 2013 to 2020 on the basis of the pan-EU benchmarks. The
automotive industry was included in the new carbon leakage list
that comes into effect in 2015. It is still unclear to what extent the
Volkswagen Group will receive additional certificates free of charge.
In 2013, the European Commission decided to initially withhold
a portion of the certificates to be auctioned and to only release them
for auction at a later date during the third trading period
(backloading). This temporary shortage of certificates during the
trading period may cause certificate prices to rise.
As well as the European Union, other countries in which the
Volkswagen Group has production sites are also considering introducing an emissions trading system. Seven pilot projects have
started in China, for example, although they have not so far affected
the Volkswagen Group. The Chinese government plans to expand
those pilot projects into a national emissions trading system.

In order to increase transparency and therefore competition in the

market, manufacturers of heavy commercial vehicles are urging the
adoption of a system for quantifying CO2 figures that is accessible to
everyone and that looks at the vehicle as a whole and not simply at
the engine or the tractor, but also at the trailers and bodywork.
As part of its efforts to reduce the CO2 emissions of heavy
commercial vehicles, the European Commission is also planning to
revise the provisions regarding the maximum permissible dimensions and weights of trucks (Directive 96/53/EC, the Weights and
Dimensions Directive). According to the proposals, having cabs
with a rounded shape and attaching aerodynamic devices at the
rear of the vehicle should enable future improvements in
aerodynamics. At the same time, the drivers field of vision is to be
extended by increasing the length of the cab in order to improve
safety. In addition, the legislators aim to increase the overall weight
permitted for vehicles with alternative drive technologies by up to
one tonne.
The European commercial vehicles industry supports the goals
of reducing CO2 emissions and improving transport safety. However,
manufacturers take a critical view of the simplified focus on
improvements in vehicle aerodynamics, which also conflict with the
applicable provisions on type approval. They believe, instead, that it
is essential to fundamentally amend the directive with regard to the
length of the cab and thus the installation space available in the
vehicle so that it is workable in practice.
In the Power Engineering segment, the International Maritime
Organization (IMO) has implemented the International Convention
for the Prevention of Pollution from Ships (MARPOL marine pollution), which aims to reduce marine pollution and phases in limits
on emissions from marine engines. Emission limits also apply, for
example, under EU Directive 1997/68/EC and the US EPA (Environmental Protection Agency) marine regulations. As regards
stationary equipment, there are a number of national rules in place
worldwide that limit permitted emissions. On December 18, 2008,
the World Bank Group set limits for gas and diesel engines in its
Environmental, Health, and Safety Guidelines for Thermal Power
Plants, which are required to be applied if individual countries
have adopted no or less strict national requirements. In addition,
back in 1979, the United Nations adopted the Convention on Longrange Transboundary Air Pollution, setting limits on total emissions
as well as nitrogen oxide limits for the signatory states (including all
EU states, other countries in Eastern Europe, the USA and Canada).
Enhancements to the product portfolio in the Power Engineering
segment are focusing on improving the efficiency of the equipment
and systems.
The allocation method for emissions certificates changed
fundamentally when the third emissions trading period (2013
2020) began. As a general rule, all emission allowances for power

Litigation

In the course of their operating activities, Volkswagen AG and the

companies in which it is directly or indirectly invested become
involved in legal disputes and official proceedings in Germany and
internationally. In particular, such legal disputes and other
proceedings may occur in relation to suppliers, dealers, customers,
employees, or investors. For the companies involved, these may
result in payment or other obligations. Above all, in cases where US
customers in particular assert claims for vehicle defects individually
or by way of a class action, highly cost-intensive measures may have
to be taken and substantial compensation or punitive damages paid.
Corresponding risks also result from US patent infringement
proceedings.
Where transparent and economically viable, adequate insurance cover is taken out for these risks and appropriate provisions
recognized for the remaining identifiable risks. The Company does

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Volkswagen continues to maintain that the results of the valuation

are correct. The appropriateness of the valuation was confirmed by
the audit firms engaged by the parties and by the court-appointed
auditor of the agreement.
Suzuki Motor Corporation has filed an action against
Volkswagen AG at a London court of arbitration for retransfer of the
19.9% interest held in Suzuki, and for damages. Volkswagen
considers the claims to be unfounded and has itself filed counterclaims. The court of arbitration is expected to reach a decision in
the first half of 2015.

not believe, therefore, that these risks will have a sustained effect
on the economic position of the Group. However, as some risks
cannot be assessed or can only be assessed to a limited extent, the
possibility of loss or damage not being covered by the insured
amounts and provisions cannot be ruled out.
ARFB Anlegerschutz UG (haftungsbeschrnkt), Berlin, brought
an action against Porsche Automobil Holding SE, Stuttgart, and
Volkswagen AG for claims for damages allegedly assigned to it in the
amount of approximately 1.8 billion. The plaintiff asserts that
these claims are based on alleged breaches by the defendants of
legislation to protect the capital markets in connection with
Porsches acquisition of Volkswagen shares in 2008. In various
cases since 2010, investors initiated conciliation proceedings for
other alleged damages including claims against Volkswagen AG
that amounted to approximately 4.6 billion in total and that also
related to transactions at that time. In each case, Volkswagen
rejected the claims asserted and refused to participate in any
conciliation proceedings.
In 2011, the European Commission opened antitrust proceedings against European truck manufacturers including MAN and
Scania. In November 2014, the European Commission sent a statement of objections to MAN, Scania and the other truck manufacturers concerned informing the truck manufacturers of the
objections raised against them and giving them the right to
comment extensively on the objections raised and to exercise other
rights of defense before any potential decision is reached. The
statement of objections is currently under review. Given the fact that
the issues are still being clarified, it is too early to judge whether the
European Commissions investigation will result in financial
liabilities for MAN and Scania, and if so to assess their amount. As a
consequence, neither Scania nor MAN have recognized provisions
or contingent liabilities.
Antitrust proceedings, also opened in 2011, by the Korea Fair
Trade Commission against several truck manufacturers including
MAN and Scania were brought to a close in fiscal year 2013 with
decisions to impose administrative fines on all manufacturers
involved. In spring 2014, MAN and Scania both lodged appeals
against the decisions to impose an administrative fine on them.
The Annual General Meeting of MAN SE approved the conclusion of a control and profit and loss transfer agreement between
MAN SE and Truck & Bus GmbH, a subsidiary of Volkswagen AG, in
June 2013. In July 2013, award proceedings were instituted to
review the appropriateness of the cash settlement set out in the
agreement in accordance with section 305 of the Aktiengesetz
(AktG German Stock Corporation Act) and the cash compensation
in accordance with section 304 of the AktG. It is not uncommon for
noncontrolling interest shareholders to institute such proceedings.

Strategies for hedging financial risks

In the course of our business activities, financial risks may arise

from changes in interest rates, exchange rates, raw materials prices,
or share and fund prices. Management of financial and liquidity
risks is the responsibility of the central Group Treasury department,
which minimizes these risks using nonderivative and derivative
financial instruments. The Board of Management is informed of
the current risk situation at regular intervals.
We hedge interest rate risk where appropriate in combination
with currency risk and risks arising from fluctuations in the value
of financial instruments by means of interest rate swaps, crosscurrency swaps and other interest rate contracts with matching
amounts and maturities. This also applies to financing arrangements within the Volkswagen Group.
Foreign currency risk is reduced in particular through natural
hedging, i.e. by flexibly adapting our production capacity at our
locations around the world, establishing new production facilities
in the most important currency regions and also procuring a large
percentage of components locally. We hedge the residual foreign
currency risk using hedging instruments. These include currency
forwards, currency options and cross-currency swaps. We use these
transactions to limit the currency risk associated with forecasted
cash flows from operating activities and intragroup financing in
currencies other than the respective functional currency. The
currency forwards and currency options can have a term of up to six
years. We use them to hedge our principal foreign currency risks
associated with forecasted cash flows, mostly against the euro and
primarily in Australian dollars, the Brazilian real, sterling, Chinese
renminbi, Japanese yen, Canadian dollars, Mexican pesos, Polish
zloty, Swedish kronor, Swiss francs, the South African rand, South
Korean won, Czech koruna, Hungarian forint and US dollars.
Raw materials purchasing entails risks relating to the availability of raw materials and price trends. We limit these risks mainly
by entering into forward transactions and swaps. We have used
appropriate contracts to hedge some of our requirements for
commodities such as aluminum, lead, coal, copper, platinum,

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among other things, loans provided at favorable interest rates by

development banks such as the European Investment Bank (EIB),
the International Finance Corporation (IFC) and the European
Bank for Reconstruction and Development (EBRD ), or by national
development banks such as Kreditanstalt fr Wiederaufbau (KfW)
and Banco Nacional de Desenvolvimento Econmico e Social
(BNDES). This extensive range of options means that the liquidity
risk to the Volkswagen Group is extremely low.
A downgrade of the Companys rating could adversely affect the
terms associated with the Volkswagen Groups borrowings.
Standard & Poors raised the Groups existing rating by a notch in
light of Volkswagens overall financial stability and flexibility,
underpinned by the strong performance by its operating business.
Moodys Investors Service retained its existing rating. Information
on the ratings of Volkswagen AG, Volkswagen Financial Services AG
and Volkswagen Bank GmbH can be found on page 97 of this report.

palladium and rhodium over a period of up to seven years. Similar

transactions have been entered into for the purpose of supplementing and improving allocations of CO2 emission certificates.
Pages 259 to 267 of the notes to the consolidated financial
statements explain our hedging policy, the hedging rules and the
default and liquidity risks, and quantify the hedging transactions
mentioned. Additionally, we disclose information on market risk
within the meaning of IFRS 7.
Risks arising from financial instruments

Channeling excess liquidity into investments and entering into

derivatives contracts gives rise to counterparty risk. Partial or
complete failure by a counterparty to perform its obligation to pay
interest and repay principal, for example, would have a negative
impact on the Volkswagen Groups earnings and liquidity. We
counter this risk through our counterparty risk management,
which we describe in more detail in the section entitled Principles
and Goals of Financial Management starting on page 102. In
addition to counterparty risk, the financial instruments held for
hedging purposes hedge balance sheet risks, which we limit by
applying hedge accounting.
By diversifying when we invest excess liquidity and by entering
into financial instruments for hedging purposes, we ensure that the
Volkswagen Group remains solvent at all times, even in the event of
a default by individual counterparties.
Risks arising from trade receivables and from financial services
are explained in more detail in the notes to the consolidated
financial statements, starting on page 259.

Residual value risk in the financial services business

In the financial services business, we agree to buy back selected

vehicles at a residual value that is fixed at inception of the contract.
Residual values are set at a realistic amount so that we are able to
leverage market opportunities. We evaluate the underlying lease
contracts at regular intervals and recognize any necessary provisions if we identify any potential risks.
Management of the residual value risk is based on a defined
feedback loop ensuring the full assessment, monitoring, management and communication of risks. This process design ensures not
only professional management of residual risks but also that we
systematically improve and enhance our handling of residual value
risks.
As part of our risk management, we use residual value forecasts
to regularly assess the appropriateness of the provisions for risks
and the potential for residual value risk. In the process, we compare
the contractually agreed residual values with the fair values
obtainable. These are determined utilizing data from external
service providers and our own marketing data. We do not take
account of the upside in residual market values when making
provisions for risks.
More information on residual value risk and other risks in the
financial services business, such as counterparty, market and
liquidity risk, can be found in the 2014 Annual Report of Volkswagen Financial Services AG.

Liquidity risks

We ensure that the Company remains solvent at all times by holding

sufficient liquidity reserves, through confirmed credit lines and
through our tried-and-tested money market and capital market
programs. We cover the capital requirements of the growing
financial services business mainly by raising funds at matching
maturities in the national and international financial markets as
well as through customer deposits from the direct banking business.
Financing conditions in the reporting period were almost
unchanged compared with the previous year.
For this reason and thanks to the broadly diversified structure
of our sources of funding, we were always able to raise sufficient
liquidity in the various markets.
Credit lines from banks are only used within the Group to cover
short-term working capital requirements. Projects are financed by,

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Other factors

OVE RA LL A S S ES S ME NT OF TH E R I S K A N D O PPO RTU N ITY PO S ITIO N

Going beyond the risks already outlined, there are other factors that
cannot be predicted and are therefore difficult to control. Should
these transpire, they could have an adverse effect on the further
development of the Volkswagen Group. In particular, these factors
include natural disasters, epidemics and terror attacks.

The Volkswagen Groups overall risk and opportunity position

results from the specific risks and opportunities shown above. We
have put in place a comprehensive risk management system to
ensure that these risks are controlled. The most significant risks to
the Group may result from a negative trend in unit sales of, and
markets for, vehicles and genuine parts, from the failure to develop
and produce products in line with demand and from quality
problems. Taking into account all the information known to us at
present, no risks exist which could pose a threat to the continued
existence of significant Group companies or the Volkswagen Group.

This annual report contains forward-looking statements on the business development of

markets, or any significant shifts in exchange rates relevant to the Volkswagen Group, will

the Volkswagen Group. These statements are based on assumptions relating to the

have a corresponding effect on the development of our business. In addition, there may be

development of the economic and legal environment in individual countries and economic

departures from our expected business development if the assessments of the factors

regions, and in particular for the automotive industry, which we have made on the basis of

influencing sustainable value enhancement, as well as risks and opportunities, presented

the information available to us and which we consider to be realistic at the time of going

in this annual report develop in a way other than we are currently expecting, or if

to press. The estimates given entail a degree of risk, and actual developments may differ

additional risks and opportunities or other factors emerge that affect the development of

from those forecast. Any changes in significant parameters relating to our key sales

our business.

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Prospects for 2015

world markets and its wide selection of financial services. We offer

an extensive array of attractive, environmentally friendly, cuttingedge, high-quality vehicles for all markets and customer groups.
This ranges from motorcycles through compact, sports and luxury
cars to heavy trucks and buses, and covers almost all segments. The
Volkswagen Groups brands will press ahead with their product
initiative in 2015, modernizing and expanding their offering by
introducing new models. Our goal is to offer all customers the
products and innovations they need, sustainably strengthening our
competitive position in the process.
We expect that the Volkswagen Group will moderately increase
deliveries to customers year-on-year in 2015 in a persistently
challenging market environment.
The difficult market environment, fierce competition, interest
rate and exchange rate volatility, and fluctuations in raw material
prices all pose challenges. We anticipate a positive effect from the
efficiency programs implemented by all brands and, increasingly,
from the modular toolkits.
Depending on the economic conditions, we expect 2015 sales
revenue for the Volkswagen Group and its business areas to
increase by up to 4% above the prior-year figure. However,
economic trends in Latin America and Eastern Europe will need to
be continuously monitored in the Commercial Vehicles/Power
Engineering Business Area.
In terms of the Groups operating profit, we anticipate an
operating return on sales of between 5.5% and 6.5% in 2015 in
light of the challenging economic environment. The operating
return on sales is expected to be in the 6.0% to 7.0% range in the
Passenger Cars Business Area and between 2.0% and 4.0% in the
Commercial Vehicles/Power Engineering Business Area. For the
Financial Services Division, we are forecasting an operating profit
at the prior-year level. Disciplined cost and investment management and the continuous optimization of our processes remain
integral elements of the Volkswagen Group's Strategy 2018.

The Volkswagen Group's Board of Management expects the global

economy to record slightly stronger growth in 2015 than in the
previous year, despite some uncertainties. The financial markets
still entail risks resulting above all from the strained debt situation
of many countries. In addition, growth prospects are being hurt by
geopolitical tensions and conflicts. The emerging economies of Asia
will probably record the highest rates of growth. While we expect to
see an economic upturn in the major industrialized nations, the
rates of expansion will remain moderate.
We expect trends in the passenger car markets in the individual
regions to be mixed in 2015. Overall, growth in global demand for
new vehicles will probably be slower than in the reporting period.
We anticipate a slight increase in demand for automobiles in
Western Europe and expect to see slight growth in the German
market as well. The Central and Eastern European markets are
likely to be down sharply year-on-year due primarily to the substantial fall in demand in Russia. In North America, we expect last
years positive trend to continue at a noticeably weaker pace. We
assume that the South American passenger car markets will fall
appreciably short of the prior-year level. The markets in the AsiaPacific region that are strategically important for the Volkswagen
Group will probably continue to grow at a slower pace.
Global demand for light commercial vehicles will probably see a
moderate increase in 2015. We expect trends to vary from region to
region.
In the markets for trucks and buses that are relevant for the
Volkswagen Group, new registrations in 2015 will probably be
noticeably lower than in the previous year.
We expect automotive financial services to continue to grow in
importance worldwide in 2015.
The Volkswagen Group is optimally positioned to deal with the
mixed developments in the global automotive markets. The Companys strengths include in particular its unique brand portfolio, its
diverse range of models, its steadily growing presence in all major

Wolfsburg, February 17, 2015

The Board of Management

174

on o i
in n i
n

ll on

11.5

11.7

12.7

I N A N C I A L S TAT E

ENTS

VO L K SWAG E N G R O U P O P E R AT I N G P R O F I T

m n

CO N S O L I DAT E D I N A N C I A L S TAT E

ENTS

Income Statement

19. Tax assets

Statement of Comprehensive Income

20. Inventories

Balance Sheet

21. Trade receivables

Statement of Changes in Equity

22. Marketable securities

Cash Flow Statement

23. Cash, cash equivalents and time deposits

24. Equity

25. Noncurrent and current financial liabilities

Basis of presentation

26. Noncurrent and current other financial liabilities

Effects of new and amended IFRSs

27. Noncurrent and current other liabilities

New and amended IFRSs not applied

28. Tax liabilities

Basis of consolidation

29. Provisions for pensions and other

Consolidation methods

post-employment benefits

Currency translation

30. Noncurrent and current other provisions

Accounting policies

31. Put options and compensation rights granted to noncontrolling

Segment reporting
Income Statement Disclosures

interest shareholders
32. Trade payables

1. Sales revenue

Disclosures in Accordance with IFRS 7 (Financial Instruments)

2. Cost of sales

Other Disclosures

3. Distribution expenses

33. Cash flow statement

4. Administrative expenses

34. Financial risk management and financial instruments

5. Other operating income

35. Capital management

6. Other operating expenses

36. Contingent liabilities

7. Share of profits and losses of

37. Litigation

equity-accounted investments

38. Other financial obligations

8. Finance costs

39. Total audit fees of the Group auditors

9. Other financial result

40. Total expense for the period

10. Income tax income expense

41. Average number of employees during the year

11. Earnings per share

42. Events after the balance sheet date

Disclosures in Accordance with IAS 23 (Borrowing Costs)

43. Related party disclosures in accordance with IAS 24

Disclosures in Accordance with IFRS 7 (Financial Instruments)

44. Notices and disclosure of changes regarding the ownership

Balance Sheet Disclosures

12. Intangible assets
13. Property, plant and equipment

of voting rights in Volkswagen AG in accordance with the

Wertpapierhandelsgesetz (WpHG German Securities Trading
Act)

14. Lease assets and investment property

45. German Corporate Governance Code

15. Equity-accounted investments and other equity investments

46. Remuneration of the Board of Management

16. Noncurrent and current financial services receivables

and the Supervisory Board

17. Noncurrent and current other financial assets

Responsibility Statement

18. Noncurrent and current other receivables

Auditors Report

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Income Statement

Income Statement
OF TH E VOLKSWAGEN GROU P FOR TH E PERIOD JAN UARY 1 TO DECEMBER 31, 2014

million

Note

2014

2013*

Sales revenue

202,458

197,007

Cost of sales

165,934

161,407

36,524

35,600

Distribution expenses

20,292

19,655

Administrative expenses

6,841

6,888

Other operating income

10,298

9,956

Other operating expenses

6,992

7,343

12,697

11,671

Gross profit

Operating profit
Share of profits and losses of
equity-accounted investments

3,988

3,588

Finance costs

2,658

2,366

Other financial result

767

465

Financial result

2,097

757

Profit before tax

14,794

12,428

3,726

3,283

3,632

3,733

Income tax income/expense

10

Current
Deferred
Profit after tax

94

449

11,068

9,145

84

52

of which attributable to
Noncontrolling interests
Volkswagen AG hybrid capital investors
Volkswagen AG shareholders

138

27

10,847

9,066

Basic earnings per ordinary share in

11

21.84

18.61

Diluted earnings per ordinary share in

11

21.84

18.61

Basic earnings per preferred share in

11

21.90

18.67

Diluted earnings per preferred share in

11

21.90

18.67

* Earnings per share adjusted to reflect application of IAS 33.26.

179

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Statement of Comprehensive Income

Statement of Comprehensive
Income
C HANGES I N COMPR EH EN SIVE I NCOME FOR TH E PER IOD JAN UARY 1 TO DEC E MB ER 31, 2013

million

Profit after tax

Total

Equity
attributable to
Volkswagen AG
shareholders

Equity
attributable to
Volkswagen AG
hybrid capital
investors

Equity
attributable to
noncontrolling
interests

9,145

9,066

27

52

2,367

2,303

64

664

651

14

1,703

1,653

50

Pension plan remeasurements recognized in other comprehensive income

Pension plan remeasurements recognized in other comprehensive income, before
tax
Deferred taxes relating to pension plan remeasurements recognized in other
comprehensive income
Pension plan remeasurements recognized in other comprehensive income, net of tax
Share of other comprehensive income of equity-accounted investments
that will not be reclassified to profit or loss, net of tax
Items that will not be reclassified to profit or loss

1,697

1,647

50

2,387

2,240

147

2,387

2,240

147

Exchange differences on translating foreign operations

Unrealized currency translation gains/losses
Transferred to profit or loss
Exchange differences on translating foreign operations, before tax
Deferred taxes relating to exchange differences on translating foreign operations

2,387

2,239

147

Fair value changes recognized in other comprehensive income

2,268

2,270

Transferred to profit or loss

118

118

Cash flow hedges, before tax

2,150

2,152

650

651

1,500

1,501

Exchange differences on translating foreign operations, net of tax

Cash flow hedges

Deferred taxes relating to cash flow hedges

Cash flow hedges, net of tax
Available-for-sale financial assets
Fair value changes recognized in other comprehensive income

141

141

Transferred to profit or loss

34

34

Available-for-sale financial assets, before tax

107

107

100

100

Share of other comprehensive income of equity-accounted investments that

may be reclassified subsequently to profit or loss, net of tax

164

164

Items that may be reclassified subsequently to profit or loss

951

802

149

Deferred taxes relating to available-for-sale financial assets

Available-for-sale financial assets, net of tax

Other comprehensive income, before tax

Deferred taxes relating to other comprehensive income
Other comprehensive income, net of tax
Total comprehensive income

180

2,067

2,152

86

1,321

1,308

13

746

844

99

9,891

9,910

27

47

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Statement of Comprehensive Income

C HANGES I N COMPR EH EN SIVE I NCOME FOR TH E PER IOD JAN UARY 1 TO DEC E MB ER 31, 2014

million

Profit after tax

Total

Equity
attributable to
Volkswagen AG
shareholders

Equity
attributable to
Volkswagen AG
hybrid capital
investors

Equity
attributable to
noncontrolling
interests

11,068

10,847

138

84

7,929

7,917

12

2,336

2,333

5,593

5,584

Pension plan remeasurements recognized in other comprehensive income

Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other
comprehensive income
Pension plan remeasurements recognized in other comprehensive income, net of tax
Share of other comprehensive income of equity-accounted investments
that will not be reclassified to profit or loss, net of tax
Items that will not be reclassified to profit or loss

5,598

5,589

974

1,027

53

41

41

1,014

1,067

53

Exchange differences on translating foreign operations

Unrealized currency translation gains/losses
Transferred to profit or loss
Exchange differences on translating foreign operations, before tax
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax

1,015

1,068

53

5,355

5,354

324

324

5,031

5,031

1,468

1,468

3,563

3,562

Cash flow hedges

Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Cash flow hedges, before tax
Deferred taxes relating to cash flow hedges
Cash flow hedges, net of tax
Available-for-sale financial assets
Fair value changes recognized in other comprehensive income

823

823

263

263

Available-for-sale financial assets, before tax

560

560

Deferred taxes relating to available-for-sale financial assets

21

21

539

539

Transferred to profit or loss

Available-for-sale financial assets, net of tax

Share of other comprehensive income of equity-accounted investments that
may be reclassified subsequently to profit or loss, net of tax
Items that may be reclassified subsequently to profit or loss
Other comprehensive income, before tax
Deferred taxes relating to other comprehensive income
Other comprehensive income, net of tax
Total comprehensive income

181

380

380

1,628

1,575

53

11,010

10,945

66

3,784

3,781

7,226

7,164

62

3,842

3,683

138

21

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Balance Sheet

Balance Sheet
OF TH E VOLKSWAGEN GROU P AS OF DECEMBER 31, 2014

million

Note

Dec. 31, 2014

Dec. 31, 2013

Intangible assets

12

59,935

59,243

Property, plant and equipment

13

46,169

42,389

Lease assets

14

27,585

22,259

Investment property

14

485

427

Equity-accounted investments

15

9,874

7,934

Other equity investments

15

3,683

3,941

Financial services receivables

16

57,877

51,198

Other financial assets

17

6,498

7,040

Other receivables

18

1,654

1,456

Tax receivables

19

468

633

Deferred tax assets

19

5,878

5,622

220,106

202,141

Assets
Noncurrent assets

Current assets
Inventories

20

31,466

28,653

Trade receivables

21

11,472

11,133

Financial services receivables

16

44,398

38,386

Other financial assets

17

7,693

6,591

Other receivables

18

5,080

5,030

Tax receivables

19

1,010

729

Marketable securities

22

10,861

8,492

Cash, cash equivalents and time deposits

23

Total assets

182

19,123

23,178

131,102

122,192

351,209

324,333

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Balance Sheet

million

Note

Dec. 31, 2014

Dec. 31, 2013

Equity and Liabilities

Equity

24

Subscribed capital

1,218

1,191

14,616

12,658

Retained earnings

71,197

72,341

Other reserves

2,081

459

5,041

2,004

89,991

87,733

Capital reserves

Equity attributable to Volkswagen AG hybrid capital investors

Equity attributable to Volkswagen AG shareholders and hybrid capital investors
Noncontrolling interests

198

2,304

90,189

90,037

Noncurrent liabilities
Financial liabilities

25

68,416

61,517

Other financial liabilities

26

3,954

2,305

Other liabilities

27

4,238

4,527

Deferred tax liabilities

28

4,774

7,894

Provisions for pensions

29

29,806

21,774

Provisions for taxes

28

3,215

3,674

Other provisions

30

15,910

13,981

130,314

115,672

Current liabilities
Put options and compensation rights granted to
noncontrolling interest shareholders

31

3,703

3,638

Financial liabilities

25

65,564

59,987

Trade payables

32

19,530

18,024

Tax payables

28

256

218

Other financial liabilities

26

7,643

4,526

Other liabilities

27

14,143

11,004

Provisions for taxes

28

2,791

2,869

Other provisions

30

17,075

18,360

130,706

118,625

351,209

324,333

Total equity and liabilities

183

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Statement of Changes in Equity

Statement of Changes in
Equity
OF TH E VOLKSWAGEN GROU P FOR TH E PERIOD JAN UARY 1 TO DECEMBER 31, 2014

OTHER RESERVES

million

Balance at Jan. 1, 2013

Subscribed
capital

Capital reserves

Retained
earnings

Currency
translation
reserve

539

1,191

11,509

64,596

Profit after tax

9,066

Other comprehensive income, net of tax

1,653

2,239

Total comprehensive income

10,719

2,239

Capital increase

1,149

Dividend payment

1,639

Capital transactions involving a change in ownership interest1

1,328

21

Other changes

Balance at Dec. 31, 2013

1,191

12,658

72,341

2,799

Balance at Jan. 1, 2014

2,799

1,191

12,658

72,341

Profit after tax

10,847

Other comprehensive income, net of tax

5,584

1,068

Total comprehensive income

5,263

1,068

27

1,959

Dividend payment

1,871

Capital transactions involving a change in ownership interest1

4,484

45

Capital increase2

Other changes3
Balance at Dec. 31, 2014

52

1,218

14,616

71,197

1,777

1 The capital transactions involving a change in ownership interest are attributable in the previous year to the derecognition of the noncontrolling interests in the equity of MAN SE and
the interest in Scania AB attributable to those noncontrolling interest shareholders and, in the reporting period, to the derecognition of the noncontrolling interests in the equity of
Scania AB.
2 Volkswagen AG recorded an inflow of cash funds amounting to 3,000 million, less a discount of 29 million and transaction costs (19 million), from the hybrid capital issued in
March 2014. Additionally, there are noncash effects from the deferral of taxes amounting to 13 million. The hybrid capital is required to be classified as equity instruments granted.
Volkswagen AG recorded an inflow of cash funds amounting to 2,000 million, less transaction costs (20 million), from the capital increase implemented in June 2014 by issuing new
preferred shares. Additionally, there are noncash effects from the deferral of taxes amounting to 6 million.
3 The other changes in retained earnings are primarily a result of exchange rate movements between the dates of publication and completion of the offer to acquire all shares of Scania
in conjunction with the measurement of the liability originally recognized outside profit or loss in March 2014.

Explanatory notes on equity are presented in note 24.

184

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Statement of Changes in Equity

Equity
attributable to
Volkswagen AG
hybrid capital
investors

Equity
attributable to
Volkswagen AG
shareholders and
hybrid capital
investors

Noncontrolling
interests

Total equity

Cash flow
hedge reserve

Available-for-sale
financial assets

Equityaccounted
investments

360

624

59

77,682

4,313

81,995

27

9,093

52

9,145

1,501

100

170

844

99

746

1,501

100

170

27

9,938

47

9,891

1,976

3,125

3,125

1,639

210

1,849

16

1,366

1,759

3,125

1,845

724

229

2,004

87,733

2,304

90,037

1,845

724

229

2,004

87,733

2,304

90,037

138

10,985

84

11,068

3,562

539

376

7,164

62

7,226

3,562

539

376

138

3,821

21

3,842

2,965

4,951

4,951

87

1,958

1,962

4,527

2,123

6,650

22

29

29

1,715

1,263

148

5,041

89,991

198

90,189

185

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Cash Flow Statement

Cash Flow Statement

OF TH E VOLKSWAGEN GROU P FOR TH E PERIOD JAN UARY 1 TO DECEMBER 31, 2014

million

2014

2013

Cash and cash equivalents at beginning of period

22,009

17,794

Profit before tax

14,794

12,428

Income taxes paid

4,040

3,107

Depreciation and amortization of, and impairment losses on, intangible assets, property, plant and equipment,
and investment property*

8,761

8,007

Amortization and write-downs of capitalized development costs*

3,006

2,464

Impairment losses on equity investments*

172

36

Depreciation of, and impairment losses on, lease assets*

5,024

4,179

Gain/loss on disposal of noncurrent assets

153

35

Share of profit or loss of equity-accounted investments

990

759

Other noncash expense/income

174

1,012

Change in inventories

2,214

1,021

Change in receivables (excluding financial services)

1,433

1,651

4,764

2,363

Change in liabilities (excluding financial liabilities)

Change in provisions

562

2,479

Change in lease assets

8,487

7,112

Change in financial services receivables

8,807

6,688

Cash flows from operating activities

10,784

12,595

12,012

11,385

4,601

4,021

83

80

195

94

Investments in intangible assets (excluding development costs), property, plant and equipment, and investment property
Additions to capitalized development costs
Acquisition of subsidiaries
Acquisition of other equity investments
Disposal of subsidiaries
Disposal of other equity investments
Proceeds from disposal of intangible assets, property, plant and equipment, and investment property
Change in investments in securities
Change in loans and time deposits
Cash flows from investing activities
Capital contributions

31

23

403

622

2,154

810

492

1,144

19,099

16,890

4,932

3,067

Dividends paid

1,962

1,849

Capital transactions with noncontrolling interest shareholders

6,535

15

21

Other changes
Proceeds from issuance of bonds
Repayment of bonds
Change in other financial liabilities
Lease payments
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents

25,608

22,118

21,748

14,614

4,352

285

17

14

4,645

8,973

294

462

Net change in cash and cash equivalents

3,375

4,216

Cash and cash equivalents at end of period

18,634

22,009

Cash and cash equivalents at end of period

18,634

22,009

Securities, loans and time deposits

18,893

17,177

Gross liquidity

37,527

39,186

133,980

121,504

96,453

82,318

Total third-party borrowings

Net liquidity
* Net of impairment reversals.

Explanatory notes on the cash flow statement are presented in note 33.

186

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Notes to the Consolidated

Financial Statements
OF TH E VOLKSWAGEN GROU P AS OF DECEMBER 31, 2014

Basis of presentation
Volkswagen AG is domiciled in Wolfsburg, Germany, and entered in the commercial register at the Braunschweig Local
Court under no. HRB 100484. The fiscal year corresponds to the calendar year.
In accordance with Regulation No. 1606/2002 of the European Parliament and of the Council, Volkswagen AG
prepared its consolidated financial statements for 2014 in compliance with the International Financial Reporting
Standards (IFRSs), as adopted by the European Union. We have complied with all the IFRSs adopted by the EU and
required to be applied.
The accounting policies applied in the previous year were retained, with the exception of the changes due to the new or
amended standards.
In addition, we have complied with all the provisions of German commercial law that we are also required to apply, as
well as with the German Corporate Governance Code.
The consolidated financial statements were prepared in euros. Unless otherwise stated, all amounts are given in
millions of euros ( million).
All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
The income statement was prepared using the internationally accepted cost of sales method.
Preparation of the consolidated financial statements in accordance with the above-mentioned standards requires
management to make estimates that affect the reported amounts of certain items in the consolidated balance sheet and in
the consolidated income statement, as well as the related disclosure of contingent assets and liabilities. The consolidated
financial statements present fairly the net assets, financial position and results of operations as well as the cash flows of the
Volkswagen Group.
The Board of Management completed preparation of the consolidated financial statements on February 17, 2015.
On that date, the period ended in which adjusting events after the reporting period are recognized.

187

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Effects of new and amended IFRSs

Volkswagen AG has adopted all accounting pronouncements required to be applied starting in fiscal year 2014.
The pronouncements contained in the consolidation package must be applied effective January 1, 2014. These
relate to the new standards IFRS 10, IFRS 11 and IFRS 12, as well as amendments to IAS 28. IFRS 10 defines the basis of
consolidation and the principles for including subsidiaries in the consolidated financial statements. The switch from IAS 27
to IFRS 10 did not require the Volkswagen Group to make any adjustments because the parent/subsidiary relationships
and other control relationships are attributable almost entirely to voting rights majorities. There was therefore no
requirement to consolidate additional entities or deconsolidate existing ones. Equally, because all significant special
purpose entities/structured entities are consolidated in the Volkswagen Group, no adjustments were required for these
entities.
IFRS 11 governs the definition of and accounting for joint arrangements in the consolidated financial statements.
Joint arrangements are classified into joint ventures and joint operations. Because all significant entities that are
jointly controlled by Volkswagen AG or one of its subsidiaries are required to be classified as joint ventures, there were no
effects from applying IFRS 11.
IFRS 12 combines all of the information required to be disclosed in the notes on subsidiaries, joint arrangements,
associates, and consolidated and unconsolidated structured entities. The scope of the information to be disclosed was
expanded.
Only the equity method in accordance with IAS 28 may be applied to joint ventures and associates effective January 1,
2014. The option to include these entities in the consolidated financial statements using proportionate consolidation was
eliminated. Because proportionate consolidation was not used in the past in the Volkswagen Group, the elimination of this
option did not result in any adjustments for the Volkswagen Group.
The other accounting pronouncements required to be applied for the first time in fiscal year 2014 are insignificant for
the presentation of the net assets, financial position and results of operations in Volkswagen AGs consolidated financial
statements.

New and amended IFRSs not applied

In its 2014 consolidated financial statements, Volkswagen AG did not apply the following accounting pronouncements that
have already been adopted by the IASB, but were not yet required to be applied for the fiscal year.

188

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Standard/Interpretation

Issued by
the IASB

Effective date1

Adopted by
the EU

Expected effects

IFRS 9

Financial Instruments

July 24, 2014

Jan. 1, 2018

No

Change in the recognition of fair value

changes in financial instruments
previously classified as available for
sale, change in the method used to
calculate risk provisions, increased
designation options for hedge
accounting, simplified effectiveness
tests, increased disclosures

IFRS 10 and
IAS 28

Consolidated Financial Statements

and Investments in Associates and
Joint Ventures:
Sale or Contribution of Assets
between an Investor and its
Associate or Joint Venture

Sept. 11, 2014 Jan. 1, 2016

No

None

IAS 28

Consolidated Financial Statements

and Investments in Associates and
Joint Ventures:
Investment Entities: Applying the
Consolidation Exception

Dec. 18, 2014

Jan. 1, 2016

No

None

IFRS 11

Joint Arrangements:
Accounting for Acquisitions of
Interests in Joint Operations

May 6, 2014

Jan. 1, 2016

No

None

IFRS 14

Regulatory Deferral Accounts

Jan. 30, 2014

Jan. 1, 2016

No

None

IFRS 15

Revenue from Contracts

with Customers

May 28, 2014

Jan. 1, 2017

No

Probably no material effects

on revenue recognition,
increased disclosures

IAS 1

Presentation of Financial
Statements

Dec. 18, 2014

Jan. 1, 2016

No

No material effects

IAS 16 and
IAS 38

Clarification of Acceptable
Methods of Depreciation and
Amortization

May 12, 2014

Jan. 1, 2016

No

No material effects

IAS 16 and
IAS 41

Agriculture: Bearer Plants

June 30, 2014

Jan. 1, 2016

No

None

IAS 19

Employee Benefits:
Defined Benefit Plans Employee
Contributions

Nov. 21, 2013

Jan. 1, 2016

Yes

No material effects

IAS 27

Separate Financial Statements:

Equity Method

Aug. 12, 2014

Jan. 1, 2016

No

None

Improvements to IFRSs 20122

Dec. 12, 2013

Jan. 1, 2016

Yes

Primarily increased segment

reporting disclosures

Improvements to IFRSs 20133

Dec. 12, 2013

Jan. 1, 2015

Yes

No material effects

Improvements to IFRSs 20144

Sept. 25, 2014 Jan. 1, 2016

No

Probably increased disclosures in

accordance with IFRS 7

Levies

May 20, 2013

Yes

None

IFRS 10,
IFRS 12 and

IFRIC 21
1
2
3
4

Jan. 1, 2015

Effective date from Volkswagen AGs perspective.

Minor amendments to a number of IFRSs (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16/38, IAS 24).
Minor amendments to a number of IFRSs (IFRS 1, IFRS 3, IFRS 13, IAS 40).
Minor amendments to a number of IFRSs (IFRS 5, IFRS 7, IAS 19, IAS 34).

189

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Basis of consolidation
In addition to Volkswagen AG, the consolidated financial statements comprise all significant German and non-German
subsidiaries, including structured entities, that are controlled directly or indirectly by Volkswagen AG. This is the case if
Volkswagen AG obtains power over the potential subsidiaries directly or indirectly from voting rights or similar rights, is
exposed, or has rights to, positive or negative variable returns from its involvement with the subsidiaries, and is able to
influence those returns. In the case of the structured entities consolidated in the Volkswagen Group, the Group company is
able to direct the material relevant activities remaining after the change in the structure even if it is not invested in the
structured entity concerned and is thus able to influence the variable returns from its involvement. The structured entities
are used primarily to enter into asset-backed securities transactions to refinance the financial services business and to
invest surplus liquidity in special securities funds. Consolidation of subsidiaries begins at the first date on which control
exists, and ends when such control no longer exists.
Subsidiaries whose business is dormant or of low volume and that are insignificant, both individually and in the
aggregate, for the fair presentation of the net assets, financial position and results of operations as well as the cash flows of
the Volkswagen Group are not consolidated. They are carried in the consolidated financial statements at cost less any
impairment losses required to be recognized since no active market exists for these companies and fair values cannot be
reliably ascertained without undue cost or effort.
Significant companies where Volkswagen AG is able, directly or indirectly, to significantly influence financial and
operating policy decisions (associates), or that are directly or indirectly jointly controlled (joint ventures), are accounted for
using the equity method. Joint ventures also include companies in which the Volkswagen Group holds the majority of
voting rights, but whose articles of association or partnership agreements stipulate that important decisions may only be
resolved unanimously. Insignificant associates and joint ventures are generally carried at the lower of cost or fair value.
The composition of the Volkswagen Group is shown in the following table:

2014

2013

Germany

158

158

Abroad

872

854

Volkswagen AG and consolidated subsidiaries

Subsidiaries carried at cost

Germany

64

65

216

209

Germany

41

41

Abroad

65

65

1,416

1,392

Abroad
Associates, joint ventures and other equity investments

The list of all shareholdings that forms part of the annual financial statements of Volkswagen AG can be downloaded from
the electronic companies register at www.unternehmensregister.de and from www.volkswagenag.com/ir by clicking on
Further mandatory Publications under the heading Mandatory Publications.

190

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The following consolidated German subsidiaries with the legal form of a corporation or partnership meet the criteria set
out in section 264(3) or section 264b of the Handelsgesetzbuch (HGB German Commercial Code) due to their inclusion
in the consolidated financial statements and have as far as possible exercised the option not to publish annual financial
statements:
> Audi Berlin GmbH, Berlin
> Audi Frankfurt GmbH, Frankfurt am Main
> Audi Hamburg GmbH, Hamburg
> Audi Hannover GmbH, Hanover
> Audi Leipzig GmbH, Leipzig
> Audi Stuttgart GmbH, Stuttgart
> Audi Zentrum Mnchen GmbH, Munich
> Autostadt GmbH, Wolfsburg
> AutoVision GmbH, Wolfsburg
> Bugatti Engineering GmbH, Wolfsburg
> Dr. Ing. h.c. F. Porsche AG, Stuttgart
> Haberl Beteiligungs-GmbH, Munich
> Karosseriewerk Porsche GmbH & Co. KG, Stuttgart
> MAHAG GmbH, Munich
> Porsche Consulting GmbH, Bietigheim-Bissingen
> Porsche Deutschland GmbH, Bietigheim-Bissingen
> Porsche Dienstleistungs GmbH, Stuttgart
> Porsche Engineering Group GmbH, Weissach
> Porsche Engineering Services GmbH, Bietigheim-Bissingen
> Porsche Financial Services GmbH & Co. KG, Bietigheim-Bissingen
> Porsche Financial Services GmbH, Bietigheim-Bissingen
> Porsche Holding Stuttgart GmbH, Stuttgart
> Porsche Leipzig GmbH, Leipzig
> Porsche Lizenz- und Handelsgesellschaft mbH & Co. KG, Ludwigsburg
> Porsche Logistik GmbH, Stuttgart
> Porsche Niederlassung Berlin GmbH, Berlin
> Porsche Niederlassung Berlin-Potsdam GmbH, Kleinmachnow
> Porsche Niederlassung Hamburg GmbH, Hamburg
> Porsche Niederlassung Leipzig GmbH, Leipzig
> Porsche Niederlassung Mannheim GmbH, Mannheim
> Porsche Niederlassung Stuttgart GmbH, Stuttgart
> Porsche Nordamerika Holding GmbH, Ludwigsburg
> Porsche Siebte Vermgensverwaltung GmbH, Stuttgart
> Porsche Zentrum Hoppegarten GmbH, Stuttgart
> Raffay Versicherungsdienst GmbH, Hamburg
> Truck & Bus GmbH, Wolfsburg
> VfL Wolfsburg-Fuball GmbH, Wolfsburg
> VGRD GmbH, Wolfsburg
> Volkswagen Automobile Berlin GmbH, Berlin
> Volkswagen Automobile Chemnitz GmbH, Chemnitz
> Volkswagen Automobile Frankfurt GmbH, Frankfurt am Main
> Volkswagen Automobile Hamburg GmbH, Hamburg
> Volkswagen Automobile Hannover GmbH, Hanover
> VOLKSWAGEN Automobile Leipzig GmbH, Leipzig
> Volkswagen Automobile Region Hannover GmbH, Hanover
> Volkswagen Automobile Rhein-Neckar GmbH, Mannheim
> Volkswagen Automobile Stuttgart GmbH, Stuttgart
> Volkswagen Gebrauchtfahrzeughandels und Service GmbH, Langenhagen
> Volkswagen Group Real Estate GmbH & Co. KG, Wolfsburg
> Volkswagen Immobilien GmbH, Wolfsburg

191

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

>
>
>
>
>
>
>

Volkswagen Logistics GmbH & Co. OHG, Wolfsburg

Volkswagen Original Teile Logistik GmbH & Co. KG, Baunatal
Volkswagen Osnabrck GmbH, Osnabrck
Volkswagen R GmbH, Wolfsburg
Volkswagen Sachsen GmbH, Zwickau
Volkswagen Vertriebsbetreuungsgesellschaft mbH, Chemnitz
Volkswagen Zubehr GmbH, Dreieich

C O N S O L I D AT E D S U B S I D I A R I E S

Following its approval by the Annual General Meeting of MAN SE on June 6, 2013 and its entry in the commercial register
on July 16, 2013, the control and profit and loss transfer agreement in accordance with section 291 of the Aktiengesetz
(AktG German Stock Corporation Act) between MAN SE, as the controlled company, and Truck & Bus GmbH, a wholly
owned subsidiary of Volkswagen AG, as the controlling company, entered into force. The obligation to transfer profits is
effective as of the fiscal year beginning on January 1, 2014; the obligation to absorb losses is effective for the first time as of
fiscal year 2013.
The agreement sets out that the noncontrolling interest shareholders of MAN SE are entitled to either a cash settlement in accordance with section 305 of the AktG amounting to 80.89 per tendered ordinary or preferred share, or cash
compensation in accordance with section 304 of the AktG in the amount of 3.07 per ordinary or preferred share (after
corporate taxes, before the shareholders individual tax liability) for each full fiscal year.
Following the approval by the Annual General Meeting of MAN SE of the conclusion of the control and profit and loss
transfer agreement, Volkswagen is no longer able to avoid its obligation to make a cash settlement. For this reason, the
noncontrolling interests in the equity of MAN SE and the interest in Scania AB attributable to these noncontrolling interest
shareholders, amounting to a total of 1,759 million, were derecognized from Group equity as of this date as a capital
transaction involving a change in ownership interest. At the same time, a liability was recognized in accordance with the
cash settlement offer for the obligation to acquire the shares in the amount of 3,125 million. The resulting difference of
1,366 million reduces the reserves attributable to the shareholders of Volkswagen AG. From now on, MAN SEs profit or
loss will be attributed in full to the shareholders of Volkswagen AG. As of December 31, 2014, 63,364 (December 31, 2013:
289,665) ordinary shares and 27,705 (December 31, 2013: 88,643) preferred shares had been tendered.
Following the derecognition of the noncontrolling interests in the equity of MAN SE from Group equity, all shares of
Scania AB that are held by MAN SE are attributable to the Volkswagen Group.
In July 2013, Truck & Bus GmbH, a wholly owned subsidiary of Volkswagen AG, was served with an application in
accordance with section 1 no. 1 of the Spruchverfahrensgesetz (SpruchG German Award Proceedings Act) for judicial
review of the appropriateness of the cash settlement in accordance with section 305 of the Aktiengesetz (AktG German
Stock Corporation Act) and the cash compensation in accordance with section 304 of the AktG for the noncontrolling
interest shareholders of MAN SE attributable to the control and profit and loss transfer agreement between MAN SE and
Truck & Bus GmbH, which was entered in MAN SEs commercial register on July 16, 2013. As a result of the opening of the
award proceedings, the obligation to the noncontrolling interest shareholders must be reassessed and the expected
present value of the minimum statutory interest rate in accordance with section 305 of the AktG must be recognized as a
liability. Based on the assumption that the award proceedings will take seven years, the assessment resulted in an expense
of 493 million in fiscal year 2013, which was recognized in the other financial result. It is not currently possible to predict
the exact duration of the proceedings.
On March 14, 2014, Volkswagen AG published an offer to the shareholders of Scania Aktiebolag, Sdertlje,
(Scania) to acquire all Scania A and Scania B shares. Each Scania A share conveys one vote at the general meeting, while
each Scania B share conveys one-tenth of a vote. There are no other legal differences between Scania A and B shares.
Volkswagen AG offered SEK 200 for each Scania share, regardless of share class. One of the conditions of the offer was that
it resulted in the Volkswagen Group holding more than 90 percent of the total number of Scania shares. When the offer to
the Scania shareholders was published, the present value of the put options granted amounting to approximately
6.7 billion was recognized as a current liability without affecting profit or loss. The Groups retained earnings declined by
the same amount.
Starting on May 7, 2014, Volkswagen acquired a total of 2.4 million Scania shares outside the offer (10,941 A shares
and 2,400,679 B shares). This corresponds to 0.30% of Scania shares and 0.06% of the voting rights.
The condition for the Volkswagen Group to hold more than 90% of the total number of Scania shares was satisfied on
May 13, 2014, and Volkswagen initiated a squeeze-out for the Scania shares that were not tendered in the course of the
offer.

192

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

At the end of the second extended acceptance period on June 5, 2014, the number of shares tendered under the terms of
the offer, together with the shares already held by Volkswagen either directly or indirectly, amounted to a total of
796.6 million Scania shares, comprising 398.7 million A shares and 397.8 million B shares. This corresponds to 99.57%
of Scania shares and 99.66% of the voting rights.
On completion of the offer, the equity interest in Scania previously attributable to noncontrolling interest
shareholders amounting to 2,123 million was required to be reclassified from noncontrolling interests to the reserves
attributable to the shareholders of Volkswagen AG. The difference of 4,527 million reduced the retained earnings
attributable to Volkswagen AG shareholders by the same amount.
The changes in the carrying amount of the liability of 96 million that was recognized when the offer was published,
which were due primarily to exchange rate movements, were recognized in the financial result in profit or loss.
Net of exchange rate effects, the shares already tendered resulted in a cash outflow of 6,535 million as of the
reporting date. This amount is reported within financing activities in the cash flow statement as an outflow from capital
transactions with noncontrolling interests. A liability of 78 million from put options and compensation rights granted to
noncontrolling interest shareholders was recognized for the remaining shares that are subject to the squeeze-out. The
court of arbitration with jurisdiction has now decided that the remaining shares will be transferred to Volkswagen. On
January 14, 2015, it was confirmed to us that the period for appealing against this decision had ended. As of that date,
Volkswagen controls 100% of the shares in Scania. A judicial decision has yet to be taken on the appropriate settlement.
The other changes in the basis of consolidation are shown in the following table:

Number

Germany

Abroad

of which: subsidiaries previously carried at cost

34

of which: newly acquired subsidiaries

of which: newly formed subsidiaries

10

19

12

53

of which: mergers

12

of which: liquidations

12

of which: sales/other

11

12

35

Initially consolidated

Deconsolidated

The initial inclusion of these subsidiaries, either individually or collectively, did not have a significant effect on the
presentation of the net assets, financial position and results of operations. The unconsolidated structured entities are
immaterial from a Group perspective. In particular, they do not give rise to any significant risks to the Group.
I N V E STM E N T S I N A S S O C I AT E S

On July 2, 2014, Dr. Ing. h.c. F. Porsche AG, Stuttgart, increased its interest in Bertrandt AG, Ehningen (Bertrandt), by just
under 4%. Following this acquisition, Volkswagen indirectly holds just under 29% of the voting shares of Bertrandt. There
has been no change in the intention not to exercise any influence on Bertrandts supervisory board or management board.
Bertrandt has been included in the Volkswagen Groups consolidated financial statements as an equity-accounted
associate from the date on which the additional shares were acquired. In this connection, the amounts resulting from the
fair value measurement of the shares amounting to 148 million that had previously been recognized in the other reserves
in other comprehensive income were recognized in profit or loss in the other financial result.
From a Group perspective, the associates Sinotruk (Hong Kong) Limited, Hong Kong (Sinotruk) and Bertrandt were
material at the reporting date.

193

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Sinotruk

Sinotruk is one of the largest truck manufacturers in the Chinese market. There is an agreement in place between Group
companies and Sinotruk regarding a long-term strategic partnership, under which the Group participates in the local
market. In addition to the partnership with Sinotruk in the volume segment, exports of MAN vehicles to China are also
helping to expand the small, but fast-growing premium truck market. Sinotruks principal place of business is in Hong
Kong, China.
As of December 31, 2014, the quoted market price of the shares in Sinotruk amounted to 317 million (previous year:
281 million).
Bertrandt

Bertrandt is an engineering partner to companies in the automotive and aviation industry. Its portfolio of services ranges
from developing individual components through complex modules to end-to-end solutions. Bertrandts principal place of
business is in Ehningen.
As of December 31, 2014, the quoted market price of the shares in Bertrandt amounted to 338 million.

S U M M A R I Z E D F I N A N C I A L I N F O R M AT I O N O N M AT E R I A L A S S O C I AT E S O N A 1 0 0 % B A S I S :

Sinotruk1

Bertrandt2

Equity interest (%)

25

29

Noncurrent assets

1,922

616

Current assets

4,112

305

168

168

Current liabilities

3,377

161

Net assets

2,490

592

Sales revenue

3,886

243

70

million

2014

Noncurrent liabilities

Post-tax profit or loss from continuing operations

Post-tax profit or loss from discontinued operations
Other comprehensive income

Total comprehensive income

69

Equity interest (%)

25

Noncurrent assets

2,065

Current assets

3,694

605

Current liabilities

2,580

Net assets

2,574

Sales revenue

3,417

30

Other comprehensive income

Total comprehensive income

28

Dividends received
2013

Noncurrent liabilities

Post-tax profit or loss from continuing operations

Post-tax profit or loss from discontinued operations

Dividends received

1 Balance sheet amounts refer to the June 30 reporting date and income statement amounts refer to the period from July 1 to June 30.
2 Balance sheet amounts refer to the September 30 reporting date and income statement amounts refer to the period from July 2 to September 30.

194

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N O F T H E F I N A N C I A L I N F O R M AT I O N TO T H E C A R RY I N G A M O U N T O F T H E E Q U I T Y- A C C O U N T E D
I N V E STM E N T S :

million

Sinotruk

Bertrandt*

2014
Net assets at January 1

2,574

595

Profit or loss

70

Other comprehensive income

136

Changes in reserves
Foreign exchange differences
Dividends
Net assets at December 31
Proportionate equity
Consolidation/Goodwill/Others
Carrying amount of equity-accounted investments

18

2,490

592

622

171

313

163

309

334

2013
Net assets at January 1

2,564

Profit or loss

30

Other comprehensive income

Changes in reserves

Foreign exchange differences

Dividends

2,574

644

346

298

Net assets at December 31

Proportionate equity
Consolidation/Goodwill/Others
Carrying amount of equity-accounted investments
* Reconciliation presented for Bertrandt as of July 2, 2014, the date from which it was accounted for using the equity method.

S U M M A R I Z E D F I N A N C I A L I N F O R M AT I O N O N I N D I V I D U A L LY I M M AT E R I A L A S S O C I AT E S O N T H E B A S I S O F T H E
V O L K SWA G E N G R O U P S P R O P O RT I O N AT E I N T E R E ST:

million

2014

2013

Post-tax profit or loss from continuing operations

47

Post-tax profit or loss from discontinued operations

49

72

73

Other comprehensive income

Total comprehensive income
Carrying amount of equity-accounted investments

There were no unrecognized losses relating to investments in associates. Contingent liabilities relating to associates
amounted to 3 million (previous year: 4 million).

195

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

I N T E R E ST S I N J O I N T V E N T U R E S

From a Group perspective, the joint ventures FAW-Volkswagen Automotive Company, Ltd., Changchun (FAW-Volkswagen
Automotive Company), Shanghai-Volkswagen Automotive Company Ltd., Shanghai (Shanghai-Volkswagen Automotive
Company), SAIC-Volkswagen Sales Company Ltd., Shanghai (SAIC-Volkswagen Sales Company) and Global Mobility
Holding B.V., Amsterdam (Global Mobility Holding) were material at the reporting date due to their size.
FAW-Volkswagen Automotive Company

FAW-Volkswagen Automotive Company develops, produces and sells passenger cars. There is an agreement in place
between Group companies and the joint venture partner China FAW Corporation Limited regarding a long-term strategic
partnership. The principal place of business is in Changchun, China.
Shanghai-Volkswagen Automotive Company

Shanghai-Volkswagen Automotive Company develops and produces passenger cars. There is an agreement in place
between Group companies and the joint venture partner Shanghai Automotive Industry Corporation regarding a longterm strategic partnership. The principal place of business is in Shanghai, China.
SAIC-Volkswagen Sales Company

SAIC-Volkswagen Sales Company sells passenger cars for Shanghai-Volkswagen Automotive Company. There is an agree-

ment in place between Group companies and the joint venture partner Shanghai Automotive Industry Corporation
regarding a long-term strategic partnership. The principal place of business is in Shanghai, China.
Global Mobility Holding

The Volkswagen Group holds a 50% indirect interest in the joint venture LeasePlan Corporation N.V., Amsterdam, the
Netherlands, via its 50% stake in the joint venture Global Mobility Holding B.V., Amsterdam, the Netherlands. Volkswagen
agreed with Fleet Investments B.V., Amsterdam, the Netherlands, an investment company belonging to the von Metzler
family, that Fleet Investments would become the new co-investor in Global Mobility Holding in 2010. The previous coinvestors were instructed by Volkswagen AG to transfer their shares to Fleet Investments B.V. on February 1, 2010 for the
purchase price of 1.4 billion. In fiscal year 2013, the agreement was prolonged by a further two years until January 2016.
Volkswagen AG has granted the new co-investor a put option on its shares. If this option is exercised, Volkswagen must pay
the original purchase price plus accumulated pro rata preferred dividends or the higher fair value. The put option is
accounted for at fair value.
In addition, Volkswagen has pledged claims under certificates of deposit with Bankhaus Metzler in the amount of
1.4 billion to secure a loan granted to Fleet Investments B.V. by Bankhaus Metzler. This pledge does not increase the
Volkswagen Groups risk arising from the above-mentioned short position.
The principal place of business is in Amsterdam, the Netherlands.

196

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

S U M M A R I Z E D F I N A N C I A L I N F O R M AT I O N O N T H E M AT E R I A L J O I N T V E N T U R E S O N A 1 0 0 % B A S I S :

million

FAW-Volkswagen
Automotive
Company

ShanghaiVolkswagen
Automotive
Company*

Global Mobility
Holding

SAIC-Volkswagen
Sales Company

40.0

50.0

50.0

30.0

2014
Equity interest (%)
Noncurrent assets
Current assets
of which: cash, cash equivalents and time deposits
Noncurrent liabilities
of which: financial liabilities
Current liabilities
of which: financial liabilities

6,913

6,402

11,251

450

14,066

7,013

9,305

4,099

7,681

5,309

1,039

248

1,551

1,254

8,299

7,257

11,472

6,558

8,560

4,050

6,753

7,956

5,603

3,697

497

42,812

23,142

7,619

26,959

861

764

83

84

99

794

378

Pre-tax profit or loss from continuing operations

6,389

4,524

468

539

Income tax income/expense

1,675

1,149

120

135

Post-tax profit or loss from continuing operations

4,714

3,376

348

404

Post-tax profit or loss from discontinued operations

Other comprehensive income

28

30

Total comprehensive income

4,714

3,348

378

404

Dividends received

1,400

1,328

70

103

40.0

50.0

50.0

30.0

Net assets
Sales revenue
Depreciation, amortization and impairment losses
Interest income
Interest expenses

2013
Equity interest (%)
Noncurrent assets
Current assets
of which: cash, cash equivalents and time deposits
Noncurrent liabilities
of which: financial liabilities
Current liabilities
of which: financial liabilities

5,226

5,025

10,813

391

12,009

6,440

9,246

3,861

6,964

5,377

1,118

169

1,613

949

7,155

6,188

9,636

6,001

9,445

3,849

11

7,644

5,986

4,515

3,459

403

37,500

20,897

7,422

23,882

820

529

84

57

94

859

480

Pre-tax profit or loss from continuing operations

5,549

3,767

390

479

Income tax income/expense

1,454

937

93

120

Post-tax profit or loss from continuing operations

4,095

2,830

297

359

Other comprehensive income

100

38

Total comprehensive income

3,995

2,831

259

359

Dividends received

1,533

1,057

50

93

Net assets
Sales revenue
Depreciation, amortization and impairment losses
Interest income
Interest expenses

Post-tax profit or loss from discontinued operations

* SAIC-Volkswagen Sales Company sells passenger cars for Shanghai-Volkswagen Automotive Company. Therefore, the sales revenue reported for ShanghaiVolkswagen Automotive Company was mostly generated from its business with SAIC-Volkswagen Sales Company.

197

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N O F T H E F I N A N C I A L I N F O R M AT I O N TO T H E C A R RY I N G A M O U N T O F T H E E Q U I T Y- A C C O U N T E D
I N V E STM E N T S :

FAW-Volkswagen
Automotive
Company

ShanghaiVolkswagen
Automotive
Company

Global Mobility
Holding

SAIC-Volkswagen
Sales Company

Net assets at January 1

5,986

4,515

3,459

403

Profit or loss

4,714

3,376

348

404

28

30

236

236

757

396

33

million

2014

Other comprehensive income

Changes in share capital
Changes in reserves
Foreign exchange differences
Dividends

3,502

2,656

140

343

Net assets at December 31

7,956

5,603

3,697

497

Proportionate equity

3,182

2,802

1,848

149

Consolidation/Goodwill/Others

187

141

13

Carrying amount of equity-accounted investments

2,995

2,661

1,835

149

Net assets at January 1

6,041

3,846

3,299

358

Profit or loss

4,095

2,830

297

359

Other comprehensive income

100

38

124

Changes in reserves

124

Foreign exchange differences

232

47

2013

Changes in share capital

Dividends

3,819

2,115

99

310

Net assets at December 31

5,986

4,515

3,459

403

Proportionate equity

2,394

2,258

1,730

121

16

108

13

2,378

2,150

1,716

121

Consolidation/Goodwill/Others
Carrying amount of equity-accounted investments

S U M M A R I Z E D F I N A N C I A L I N F O R M AT I O N O N I N D I V I D U A L LY I M M AT E R I A L J O I N T V E N T U R E S O N T H E B A S I S O F T H E
V O L K SWA G E N G R O U P S P R O P O RT I O N AT E I N T E R E ST:

million

2014

2013

Post-tax profit or loss from continuing operations

281

244

Post-tax profit or loss from discontinued operations

Other comprehensive income

Total comprehensive income

273

243

1,519

1,199

Carrying amount of equity-accounted investments

There were no unrecognized losses relating to interests in joint ventures. Contingent liabilities relating to joint ventures
amounted to 86 million (previous year: million).

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Notes to the Consolidated Financial Statements

Consolidation methods
The assets and liabilities of the German and foreign companies included in the consolidated financial statements are
recognized in accordance with the uniform accounting policies used within the Volkswagen Group. In the case of
companies accounted for using the equity method, the same accounting policies are applied to determine the
proportionate equity, based on the most recent audited annual financial statements of each company.
In the case of subsidiaries consolidated for the first time, assets and liabilities are measured at their fair value at the
date of acquisition. Their carrying amounts are adjusted in subsequent years. Goodwill arises when the purchase price of
the investment exceeds the fair value of identifiable net assets. Goodwill is tested for impairment once a year to determine
whether its carrying amount is recoverable. If the carrying amount of goodwill is higher than the recoverable amount, an
impairment loss must be recognized. If this is not the case, there is no change in the carrying amount of goodwill
compared with the previous year. If the purchase price of the investment is less than the identifiable net assets, the
difference is recognized in the income statement in the year of acquisition. Goodwill is accounted for at the subsidiaries in
the functional currency of those subsidiaries. Any difference that arises from the acquisition of additional shares of an
already consolidated subsidiary is taken directly to equity. Unless otherwise stated, the proportionate equity directly
attributable to noncontrolling interests is determined at the acquisition date as the share of the fair value of the assets
(excluding goodwill) and liabilities attributable to them. Contingent consideration is measured at fair value at the
acquisition date. Subsequent changes in the fair value of contingent consideration do not generally result in the
adjustment of the acquisition-date measurement. Acquisition-related costs that are not equity transaction costs are not
added to the purchase price, but instead recognized as expenses in the period in which they are incurred.
The consolidation process involves adjusting the items in the separate financial statements of the parent and its
subsidiaries and presenting them as if they were those of a single economic entity. Intragroup assets, liabilities, equity,
income, expenses and cash flows are eliminated in full. Intercompany profits or losses are eliminated in Group inventories
and noncurrent assets. Deferred taxes are recognized for consolidation adjustments, and deferred tax assets and liabilities
are offset where taxes are levied by the same tax authority and relate to the same tax period.

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Notes to the Consolidated Financial Statements

Currency translation
Transactions in foreign currencies are translated in the single-entity financial statements of Volkswagen AG and its
consolidated subsidiaries at the rates prevailing at the transaction date. Foreign currency monetary items are recorded in
the balance sheet using the middle rate at the closing date. Foreign exchange gains and losses are recognized in the income
statement. This does not apply to foreign exchange differences from loans receivable that represent part of a net investment in a foreign operation. The financial statements of foreign companies are translated into euros using the functional
currency concept. Asset and liability items are translated at the closing rate. With the exception of income and expenses
recognized directly in equity, equity is translated at historical rates. The resulting foreign exchange differences are
recognized in other comprehensive income until disposal of the subsidiary concerned, and are presented as a separate
item in equity.
Income statement items are translated into euros at weighted average rates.
The rates applied are presented in the following table:

BALANCE SHEET MIDDLE RATE

INCOME STATEMENT

ON DECEMBER 31,

AVERAGE RATE

1 =

2014

2013

2014

2013

Argentina

ARS

10.27253

8.98251

10.77234

7.27413

Australia

AUD

1.48290

1.54230

1.47240

1.37702

BRL

3.22070

3.25760

3.12277

2.86694

Canada

CAD

1.40630

1.46710

1.46687

1.36845

Czech Republic

CZK

27.73500

27.42700

27.53583

25.98715

India

INR

76.71900

85.36600

81.06888

77.87525

Japan

JPY

145.23000

144.72000

140.37722

129.65950

Brazil

Mexico

MXN

17.86790

18.07310

17.66209

16.96444

Peoples Republic of China

CNY

7.53580

8.34910

8.18825

8.16549

Poland

PLN

4.27320

4.15430

4.18447

4.19708

Republic of Korea

KRW

1,324.80000

1,450.93000

1,399.02954

1,453.85601

Russia

RUB

72.33700

45.32460

51.01125

42.32482

South Africa

ZAR

14.03530

14.56600

14.40652

12.83079

Sweden

SEK

9.39300

8.85910

9.09689

8.65050

United Kingdom

GBP

0.77890

0.83370

0.80643

0.84925

USA

USD

1.21410

1.37910

1.32884

1.32814

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Notes to the Consolidated Financial Statements

Accounting policies
MEASUREMENT PRI NCI PLES

With certain exceptions such as financial instruments at fair value through profit or loss, available-for-sale financial assets
and provisions for pensions and other post-employment benefits, items in the Volkswagen Group are accounted for under
the historical cost convention. The methods used to measure the individual items are explained in more detail below.
I N TA N G I B L E A S S E T S

Purchased intangible assets are recognized at cost and amortized over their useful life using the straight-line method. This
relates in particular to software, which is amortized over three years.
In accordance with IAS 38, research costs are recognized as expenses when incurred.
Development costs for future series products and other internally generated intangible assets are capitalized at cost,
provided manufacture of the products is likely to bring the Volkswagen Group an economic benefit. If the criteria for
recognition as assets are not met, the expenses are recognized in the income statement in the year in which they are
incurred.
Capitalized development costs include all direct and indirect costs that are directly attributable to the development
process. The costs are amortized using the straight-line method from the start of production over the expected life cycle of
the models or powertrains developed generally between two and ten years.
Amortization recognized during the year is allocated to the relevant functions in the income statement.
Brand names from business combinations usually have an indefinite useful life and are therefore not amortized.
Goodwill, intangible assets with indefinite useful lives and intangible assets that are not yet available for use are tested
for impairment at least once a year. Assets in use and other intangible assets with finite useful lives are tested for
impairment only if there are specific indications that they may be impaired. The Volkswagen Group generally applies the
higher of value in use and fair value less costs to sell of the relevant cash-generating unit (brands or products) to determine
the recoverable amount of goodwill and indefinite-lived intangible assets. Measurement of value in use is based on
managements current planning. This planning is based on expectations regarding future global economic trends and on
assumptions derived from those trends about the markets for passenger cars and commercial vehicles, market shares and
the profitability of the products. The planning for the Financial Services segment is prepared on the basis of these
expectations, and also reflects the relevant market penetration rates and regulatory requirements. The planning for the
Power Engineering segment reflects expectations about trends in the various individual markets. The planning includes
reasonable assumptions about macroeconomic trends (exchange rate, interest rate and commodity price trends) and
historical developments. The planning period generally covers five years. For information on the assumptions applied to
the detailed planning period, please refer to the Report on Expected Developments, which is part of the Management
Report. For subsequent years, plausible assumptions are made regarding future trends. The planning assumptions are
adapted to reflect the current state of knowledge.
Estimation of cash flows is generally based on the expected growth trends for the markets concerned. The estimates for
the cash flows following the end of the planning period are generally based on a growth rate of up to 1% p.a. (previous year:
up to 1% p.a.) in the Passenger Cars and Financial Services segments, and on a growth rate of up to 1% p.a. (previous year:
up to 2% p.a.) in the Power Engineering and Commercial Vehicles segments.

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Notes to the Consolidated Financial Statements

Value in use is determined for the purpose of impairment testing of goodwill, indefinite-lived intangible assets and finitelived intangible assets mainly capitalized development costs using the following pretax weighted average cost of capital
(WACC) rates, which are adjusted if necessary for country-specific discount factors:

WACC

2014

Passenger Cars segment

6.1%

6.6%

Commercial Vehicles segment

9.8%

11.2%

12.6%

14.7%

Power Engineering segment

2013

A minimum cost of equity of 8.6% (previous year: 9.0%) is used for the Financial Services segment in line with the sectorspecific need to reflect third-party borrowings. If necessary, this rate is additionally adjusted for country-specific discount
factors.
The WACC rates are calculated based on a risk-free rate of interest. In addition to a market risk premium, specific peer
group information on beta factors, leverage and cost of debt is also taken into account.
P R O P E RT Y, P L A N T A N D E Q U I P M E N T

Property, plant and equipment is carried at cost less depreciation and where necessary write-downs for impairment.
Investment grants are generally deducted from cost. Cost is determined on the basis of the direct and indirect costs that are
directly attributable. Special tools are reported under other equipment, operating and office equipment. Property, plant
and equipment is depreciated using the straight-line method over its estimated useful life. The useful lives of items of
property, plant and equipment are reviewed on a regular basis and adjusted if required.
Depreciation is based mainly on the following useful lives:

Useful life

Buildings

25 to 50 years

Site improvements

10 to 20 years

Technical equipment and machinery

6 to 12 years

Other equipment, operating and office equipment, including special tools

3 to 15 years

Impairment losses on property, plant and equipment are recognized in accordance with IAS 36 where the recoverable
amount of the asset concerned has fallen below the carrying amount. Recoverable amount is the higher of value in use and
fair value less costs to sell. Value in use is determined using the principles described for intangible assets. The discount
rates for product-specific tools and investments are the same as the discount rates for capitalized development costs given
above for each segment. If the reasons for impairments recognized in previous years no longer apply, the impairment
losses are reversed up to a maximum of the amount that would have been determined if no impairment loss had been
recognized.
In accordance with the principle of substance over form, assets that have been formally transferred to third parties
under a sale and leaseback transaction including a repurchase option also continue to be accounted for as separate assets.

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Notes to the Consolidated Financial Statements

Where leased items of property, plant and equipment are used, the criteria for classification as a finance lease as set out in
IAS 17 are met if all material risks and rewards incidental to ownership have been transferred to the Group company
concerned. In such cases, the assets concerned are recognized at fair value or at the present value of the minimum lease
payments (if lower) and depreciated using the straight-line method over the assets useful life, or over the term of the lease
if this is shorter. The payment obligations arising from the future lease payments are discounted and recorded as a liability
in the balance sheet.
Where Group companies are the lessees of assets under operating leases, i.e. if not all material risks and rewards are
transferred, lease and rental payments are recorded directly as expenses in profit or loss.
LEASE ASSETS

Vehicles leased out under operating leases are recognized at cost and depreciated to their estimated residual value using
the straight-line method over the term of the lease. Impairment losses identified as a result of an impairment test in
accordance with IAS 36 are recognized and the depreciation rate is adjusted. The forecast residual values are adjusted to
include constantly updated internal and external information on residual values, depending on specific local factors and
the experiences gained in the marketing of used cars.
I N V E STM E N T P R O P E R T Y

Real estate and buildings held in order to obtain rental income (investment property) are carried at amortized cost; the
useful lives applied to depreciation generally correspond to those of the property, plant and equipment used by the
Company itself. The fair value of investment property must be disclosed in the notes if it is carried at amortized cost. Fair
value is generally estimated using an investment method based on internal calculations. This involves determining the
income value for a specific building on the basis of gross income, taking into account additional factors such as land value,
remaining useful life and a multiplier specific to property.
C A P I TA L I Z AT I O N O F B O R R O W I N G C O ST S

Borrowing costs that are directly attributable to the acquisition of qualifying assets on or after January 1, 2009 are
capitalized as part of the cost of these assets. A qualifying asset is an asset that necessarily takes at least a year to get ready
for its intended use or sale.
E Q U I T Y- A C C O U N T E D I N V E STM E N T S

The cost of equity-accounted investments is adjusted to reflect the share of increases or reductions in equity at the
associates and joint ventures after the acquisition that is attributable to the Volkswagen Group. Additionally, the investment
is tested for impairment if there are indications of impairment and written down to the lower recoverable amount if
necessary. Recoverable amount is determined using the principles described for indefinite-lived intangible assets. If the
reason for impairment ceases to apply at a later date, the impairment loss is reversed to the carrying amount that would
have been determined had no impairment loss been recognized.
F I N A N C I A L I N ST R U M E N T S

Financial instruments are contracts that give rise to a financial asset of one company and a financial liability or an equity
instrument of another. Regular way purchases or sales of financial instruments are accounted for at the settlement date
that is, at the date on which the asset is delivered.
IAS 39 classifies financial assets into the following categories:

financial assets at fair value through profit or loss;

held-to-maturity financial assets;
> loans and receivables; and
> available-for-sale financial assets.
>
>

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Notes to the Consolidated Financial Statements

Financial liabilities are classified into the following categories:

> financial liabilities at fair value through profit or loss; and
> financial liabilities measured at amortized cost.
We recognize financial instruments at amortized cost or at fair value.
The amortized cost of a financial asset or liability is the amount:
> at which a financial asset or liability is measured at initial recognition;
> minus any principal repayments;
> minus any write-down for impairment or uncollectibility;
> plus or minus the cumulative amortization of any difference between the original amount and the amount repayable at
maturity (premium, discount), amortized using the effective interest method over the term of the financial asset or
liability.
In the case of current receivables and liabilities, amortized cost generally corresponds to the principal or repayment
amount.
Fair value generally corresponds to the market or quoted market price. If no active market exists, fair value is
determined using other observable inputs as far as possible. If no observable inputs are available, fair value is determined
using valuation techniques, such as by discounting the future cash flows at the market interest rate, or by using recognized
option pricing models, and verified by confirmations from the banks that handle the transactions.
The fair value option is not used in the Volkswagen Group.
Financial assets and financial liabilities are generally presented at their gross amounts and only offset if the
Volkswagen Group currently has a legally enforceable right to set off the amounts and intends either to settle on a net basis
or to realize the asset and settle the liability simultaneously.
L O A N S A N D R E C E I VA B L E S A N D F I N A N C I A L L I A B I L I T I E S

Loans, receivables and liabilities, as well as held-to-maturity financial assets, are measured at amortized cost, unless
hedged. Specifically, these relate to:
> receivables from financing business;
> trade receivables and payables;
> other receivables and financial assets and liabilities;
> financial liabilities; and
> cash, cash equivalents and time deposits.
AVA I L A B L E - F O R- S A L E F I N A N C I A L A S S E T S

Available-for-sale financial assets are either allocated specifically to this category or are financial assets that cannot be
assigned to any other category.
Available-for-sale financial assets (debt instruments) are carried at fair value. Changes in fair value are recognized
directly in equity, net of deferred taxes. Prolonged changes in the fair value of debt instruments (impairment losses,
foreign exchange gains and losses, interest calculated using the effective interest method) are recognized in profit or loss.
Shares in unconsolidated subsidiaries and other equity investments that are not accounted for using the equity method
are also classified as available-for-sale financial assets. They are recognized at cost in the consolidated financial statements
if there is no active market for those companies and fair values cannot be reliably ascertained without undue cost or effort.
Fair values are recognized if there are indications that fair value is lower than cost. There is currently no intention to sell
these financial assets. Foreign exchange gains and losses attributable to equity instruments are recognized in other
comprehensive income.

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Notes to the Consolidated Financial Statements

D E R I VAT I V E S A N D H E D G E A C C O U N T I N G

Volkswagen Group companies use derivatives to hedge balance sheet items and future cash flows (hedged items).
Appropriate derivatives such as swaps, forward transactions and options are used as hedging instruments. The criteria for
the application of hedge accounting are that the hedging relationship between the hedged item and the hedging
instrument is clearly documented and that the hedge is highly effective.
The accounting treatment of changes in the fair value of hedging instruments depends on the nature of the hedging
relationship. In the case of hedges against the risk of change in the carrying amount of balance sheet items (fair value
hedges), both the hedging instrument and the hedged risk portion of the hedged item are measured at fair value. Several
risk portions of hedged items are grouped into a portfolio if appropriate. In the case of a fair value portfolio hedge, the
changes in fair value are accounted for in the same way as for a fair value hedge of an individual underlying. Gains or losses
from the remeasurement of hedging instruments and hedged items are recognized in profit or loss. In the case of hedges
of future cash flows (cash flow hedges), the hedging instruments are also measured at fair value. Gains or losses from
remeasurement of the effective portion of the derivative are initially recognized in the reserve for cash flow hedges directly
in equity, and are only recognized in the income statement when the hedged item is recognized in profit or loss; the
ineffective portion of a cash flow hedge is recognized immediately in profit or loss.
Derivatives used by the Volkswagen Group for financial management purposes to hedge against interest rate, foreign
currency, commodity, or price risks, but that do not meet the strict hedge accounting criteria of IAS 39, are classified as
financial assets or liabilities at fair value through profit or loss (also referred to below as derivatives not included in
hedging relationships). This also applies to options on shares. External hedges of intragroup hedged items that are
subsequently eliminated in the consolidated financial statements are also assigned to this category. Assets and liabilities
measured at fair value through profit or loss consist of derivatives or components of derivatives that are not included in
hedge accounting. These relate primarily to the interest component of currency forwards used to hedge sales revenue,
commodity futures and currency forwards relating to commodity futures. Gains and losses from the remeasurement and
settlement of financial instruments at fair value through profit or loss are reported in the financial result.
R E C E I VA B L E S F R O M F I N A N C E L E A S E S

Where a Group company is the lessor generally of vehicles a receivable in the amount of the net investment in the lease
is recognized in the case of finance leases, in other words where substantially all the risks and rewards are transferred to
the lessee.
OT H E R R E C E I VA B L E S A N D F I N A N C I A L A S S E T S

Other receivables and financial assets (except for derivatives) are recognized at amortized cost.
I M PA I R M E N T L O S S E S O N F I N A N C I A L I N ST R U M E N T S

Default risk on loans and receivables in the financial services business is accounted for by recognizing specific valuation
allowances and portfolio-based valuation allowances.
More specifically, in the case of significant individual receivables (e.g. dealer finance receivables and fleet customer
business receivables) specific valuation allowances are recognized in accordance with Group-wide standards in the
amount of the incurred loss. A potential impairment is assumed in the case of a number of situations such as delayed
payment over a certain period, the institution of enforcement measures, the threat of insolvency or overindebtedness,
application for or the opening of bankruptcy proceedings, or the failure of reorganization measures.
Portfolio-based valuation allowances are recognized by grouping together insignificant receivables and significant
individual receivables for which there is no indication of impairment into homogeneous portfolios on the basis of
comparable credit risk features and allocating them by risk class. As long as no definite information is available as to which
receivables are in default, average historical default probabilities for the portfolio concerned are used to calculate the
amount of the valuation allowances.
As a matter of principle, specific valuation allowances are recognized on receivables outside the Financial Services
segment.
Valuation allowances on receivables are regularly recognized in separate allowance accounts.

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Notes to the Consolidated Financial Statements

An impairment loss is recognized on available-for-sale financial assets if there is objective evidence of permanent
impairment. In the case of equity instruments, evidence of impairment is taken to exist, among other things, if the fair
value decreases below cost significantly (by more than 20%) or the decrease is prolonged (by more than 10% of the
average market prices over one year). If impairment is identified, the cumulative loss is recognized in the reserve and
charged to profit and loss. In the case of equity instruments, reversals of impairment losses are taken directly to equity.
Impairment losses are recognized on debt instruments if a decrease in the future cash flows of the financial asset is
expected. An increase in the risk-free interest rate or an increase in credit risk premiums is not in itself evidence of
impairment.
D E F E R R E D TA X E S

Deferred tax assets are generally recognized for tax-deductible temporary differences between the tax base of assets and
their carrying amounts in the consolidated balance sheet, as well as on tax loss carryforwards and tax credits provided it is
probable that they can be used in future periods. Deferred tax liabilities are generally recognized for all taxable temporary
differences between the tax base of liabilities and their carrying amounts in the consolidated balance sheet.
Deferred tax liabilities and assets are recognized in the amount of the expected tax liability or tax benefit, as
appropriate, in subsequent fiscal years, based on the expected enacted tax rate at the time of realization. The tax
consequences of dividend payments are not taken into account until the resolution on appropriation of earnings available
for distribution has been adopted.
Deferred tax assets that are unlikely to be realized within a clearly predictable period are reduced by valuation
allowances.
Deferred tax assets for tax loss carryforwards are usually measured on the basis of future taxable income over a
planning period of five fiscal years.
Deferred tax assets and deferred tax liabilities are offset where taxes are levied by the same taxation authority and
relate to the same tax period.
I N V E N TO R I E S

Raw materials, consumables and supplies, merchandise, work in progress and self-produced finished goods reported in
inventories are carried at the lower of cost or net realizable value. Cost is determined on the basis of the direct and indirect
costs that are directly attributable. Borrowing costs are not capitalized. The measurement of same or similar inventories is
generally based on the weighted average cost method.
N O N C U R R E N T A S S E T S H E L D F O R S A L E A N D D I S C O N T I N U E D O P E R AT I O N S

Under IFRS 5, noncurrent assets or groups of assets and liabilities (disposal groups) are classified as held for sale if their
carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Such assets
are carried at the lower of their carrying amount and fair value less costs to sell, and are presented separately in current
assets and liabilities in the balance sheet.
Discontinued operations are components of an entity that have either been disposed of or are classified as held for
sale. The assets and liabilities of operations that are held for sale represent disposal groups that must be measured and
reported using the same principles as noncurrent assets held for sale. The income and expenses from discontinued
operations are presented in the income statement as profit or loss from discontinued operations below the profit or loss
from continuing operations. Corresponding disposal gains or losses are contained in the profit or loss from discontinued
operations. The prior-year figures in the income statement are adjusted accordingly.
PE N SI ON PROVI S IO NS

The actuarial valuation of pension provisions is based on the projected unit credit method stipulated by IAS 19 for defined
benefit plans. The valuation is not only based on pension payments and vested entitlements known at the balance sheet
date, but also reflects future salary and pension trends, as well as experience-based staff turnover rates. Remeasurements
are recognized in retained earnings in other comprehensive income, net of deferred taxes.

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Notes to the Consolidated Financial Statements

P R O V I S I O N S F O R TA X E S

Tax provisions contain obligations resulting from current taxes. Deferred taxes are presented in separate items of the
balance sheet and income statement. Provisions are recognized for potential tax risks on the basis of the best estimate of
the liability.
OT H E R P R O V I S I O N S

In accordance with IAS 37, provisions are recognized where a present obligation exists to third parties as a result of a past
event, where a future outflow of resources is probable and where a reliable estimate of that outflow can be made.
Provisions not resulting in an outflow of resources in the year immediately following are recognized at their settlement
value discounted to the balance sheet date. Discounting is based on market interest rates. An average discount rate of
0.36% (previous year: 1.03%) was used in the eurozone. The settlement value also reflects cost increases expected at the
balance sheet date.
Provisions are not offset against claims for reimbursement.
We recognize insurance contracts that form part of the insurance business in accordance with IFRS 4. Reinsurance
acceptances are accounted for without any time delay in the year in which they arise. Provisions are generally recognized
based on the cedants contractual duties. Estimation techniques based on assumptions about future changes in claims are
used to calculate the claims provision. Other technical provisions relate to the provision for cancellations.
The share of the provisions attributable to reinsurers is calculated in accordance with the contractual agreements with
the retrocessionaries and reported under other assets.
LIABI LITIES

Noncurrent liabilities are recorded at amortized cost in the balance sheet. Differences between historical cost and the
repayment amount are amortized using the effective interest method.
Liabilities to members of partnerships from puttable shares are recognized in the income statement at the present
value of the redemption amount at the balance sheet date.
Liabilities under finance leases are carried at the present value of the lease payments.
Current liabilities are recognized at their repayment or settlement value.
R EV EN U E A N D EXPE N SE R E COG N ITIO N

Sales revenue, interest and commission income from financial services and other operating income are recognized only
when the relevant service has been rendered or the goods have been delivered, that is, when the risk has passed to the
customer, the amount of sales revenue can be reliably determined and settlement of the amount can be assumed. Revenue
is reported net of sales allowances (discounts, rebates, or customer bonuses). Sales revenue from financing and lease
agreements is recognized using the effective interest method. If non-interest-bearing or low-interest vehicle financing
arrangements are agreed, sales revenue is reduced by the interest benefits granted. Revenue from operating leases is
recognized using the straight-line method over the term of the lease. Sales revenue from extended warranties or
maintenance agreements is recognized when deliveries take place or services are rendered. In the case of prepayments,
deferred income is recognized proportionately by reference to the costs expected to be incurred, based on experience.
Revenue is recognized on a straight-line basis if there is insufficient experience. If the expected costs exceed the accrued
sales revenue, a loss is recognized from these agreements.
If a contract comprises several separately identifiable components (multiple-element arrangements), these components are recognized separately in accordance with the principles outlined above.
Income from assets for which a Group company has a buy back obligation is recognized only when the assets have
definitively left the Group. If a fixed repurchase price was agreed when the contract was entered into, the difference
between the selling price and the present value of the repurchase price is recognized as income ratably over the term of the
contract. Prior to that time, the assets are carried as inventories in the case of short contract terms and as lease assets in the
case of long contract terms.

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Notes to the Consolidated Financial Statements

Cost of sales includes the costs incurred to generate the sales revenue and the cost of goods purchased for resale. This item
also includes the costs of additions to warranty provisions. Research and development costs not eligible for capitalization
in the period and amortization of development costs are likewise carried under cost of sales. Reflecting the presentation of
interest and commission income in sales revenue, the interest and commission expenses attributable to the financial
services business are presented in cost of sales.
Construction contracts are recognized using the percentage of completion (PoC) method, under which revenue and
cost of sales are recognized by reference to the stage of completion at the end of the reporting period, based on the contract
revenue agreed with the customer and the expected contract costs. As a rule, the stage of completion is determined as the
proportion that contract costs incurred by the end of the reporting period bear to the estimated total contract costs (cost-tocost method). In certain cases, in particular those involving innovative, complex contracts, the stage of completion is
measured using contractually agreed milestones (milestone method). If the outcome of a construction contract cannot yet
be estimated reliably, contract revenue is recognized only in the amount of the contract costs incurred to date (zero profit
method). In the balance sheet, contract components whose revenue is recognized using the percentage of completion
method are reported as trade receivables, net of prepayments received. Expected losses from construction contracts are
recognized immediately in full as expenses by recognizing impairment losses on recognized contract assets, and
additionally by recognizing provisions for amounts in excess of the impairment losses.
Dividend income is recognized on the date when the dividend is legally approved.
GOVE R N M E NT G RA NTS

Government grants related to assets are deducted when arriving at the carrying amount of the asset and are recognized
in profit or loss over the life of the depreciable asset as a reduced depreciation expense. If the Group becomes entitled to a
grant subsequently, the amount of the grant attributable to prior periods is recognized in profit or loss.
Government grants related to income, i.e. that compensate the Group for expenses incurred, are recognized in profit
or loss for the period in those items in which the expenses to be compensated by the grants are also recognized. Grants in
the form of nonmonetary assets (e.g. the use of land free of charge or the transfer of resources free of charge) are disclosed
as a memo item.
E ST I M AT E S A N D A S S U M P T I O N S B Y M A N A G E M E N T

Preparation of the consolidated financial statements requires management to make certain estimates and assumptions
that affect the reported amounts of assets and liabilities, and income and expenses, as well as the related disclosure of
contingent assets and liabilities of the reporting period. The estimates and assumptions relate largely to the following
matters:
The impairment testing of nonfinancial assets (especially goodwill, brand names and capitalized development costs)
and equity-accounted investments, or investments accounted at cost, and the measurement of options on shares in
companies that are not traded in an active market require assumptions about the future cash flows during the planning
period, and possibly beyond it, as well as about the discount rate to be applied. The estimates made in order to separate
cash flows mainly relate to future market shares, the growth in the respective markets and the profitability of the products.
In addition, the recoverability of the Groups lease assets depends in particular on the residual value of the leased vehicles
after expiration of the lease term, because this represents a significant portion of the expected cash flows. More detailed
information on impairment tests and the measurement parameters used for those tests can be found in the explanations
on the accounting policies for intangible assets.
If there are no observable market inputs, the fair values of assets acquired and liabilities assumed in a business
combination are measured using recognized valuation techniques, such as the relief-from-royalty method or the residual
method.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Impairment testing of financial assets requires estimates about the extent and probability of occurrence of future events.
As far as possible, estimates are derived from past experience taking into account current market data as well as rating
categories and scoring information. In the case of financial services receivables, both specific and portfolio-based
valuation allowances are recognized. The more detailed balance sheet disclosures on IFRS 7 (Financial Instruments)
contain an overview of these specific and portfolio-based valuation allowances.
Accounting for provisions is also based on estimates of the extent and probability of occurrence of future events, as well
as estimates of the discount rate. As far as possible, these are also based on past experience or external opinions. In
addition, the measurement of pension provisions depends on the estimated growth in plan assets. The assumptions
underlying the measurement of pension provisions are contained in note 29. Remeasurements are recognized in other
comprehensive income and do not affect profit or loss reported in the income statement. Any change in the estimates of the
amount of other provisions is always recognized in profit or loss. The provisions are regularly adjusted to reflect new
information obtained. The use of empirical values means that additional amounts must frequently be recognized for
provisions, or that unused provisions are reversed. Reversals of provisions are recognized as other operating income,
whereas expenses relating to the recognition of provisions are allocated directly to the functions. Warranty claims from
sales transactions are calculated on the basis of losses to date, estimated future losses and the policy on ex gratia
arrangements. This requires assumptions to be made about the nature and extent of future guarantee and ex gratia claims.
Note 30 contains an overview of other provisions. For information on litigation, see also note 37. With regard to MAN, the
put options and compensation rights of free float shareholders recognized within liabilities depend on the outcome of the
award proceedings. The liability was based on estimates of the length of the award proceedings and the amount of the put
options and compensation rights. The length was estimated based on the fact that proceedings take seven years on average.
The amount of the put options and compensation rights is derived from the cash settlement set out in the agreement in
accordance with section 305 of the Aktiengesetz (AktG German Stock Corporation Act) and the cash compensation in
accordance with section 304 of the AktG.
Government grants are recognized based on an assessment as to whether there is reasonable assurance that the
Group companies will fulfill the attached conditions and the grants will be awarded. This assessment is based on the nature
of the legal entitlement and past experience.
Estimates of the useful life of finite-lived assets are based on past experience and are reviewed regularly. Where
estimates are modified the residual useful life is adjusted and an impairment loss is recognized, if necessary.
Measuring deferred tax assets requires assumptions regarding future taxable income and the timing of the realization
of deferred tax assets.
The estimates and assumptions are based on underlying assumptions that reflect the current state of available
knowledge. Specifically, the expected future development of business was based on the circumstances known at the date of
preparation of these consolidated financial statements and a realistic assessment of the future development of the global
and sector-specific environment. Our estimates and assumptions remain subject to a high degree of uncertainty because
future business developments are subject to uncertainties that in part cannot be influenced by the Group. This applies in
particular to short- and medium-term cash flow forecasts and to the discount rates used.
Developments in this environment that differ from the assumptions and that cannot be influenced by management
could result in amounts that differ from the original estimates. If actual developments differ from the expected
developments, the underlying assumptions and, if necessary, the carrying amounts of the assets and liabilities affected are
adjusted.
Global economic growth rose moderately to 2.7% in fiscal year 2014. Our planning is based on the assumption that the
global economy will grow at a rather stronger pace in fiscal year 2015 than it did in the reporting period. As a result, from
todays perspective, we are not expecting material adjustments in the following fiscal year in the carrying amounts of the
assets and liabilities reported in the consolidated balance sheet.
Estimates and assumptions by management were based in particular on assumptions relating to the development of
the general economic environment, the automotive markets and the legal environment. These and further assumptions
are explained in detail in the Report on Expected Developments, which is part of the Group Management Report.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Segment reporting
Segments are identified on the basis of the Volkswagen Groups internal management and reporting. In line with the
Groups multibrand strategy, each of its brands is managed by its own board of management. The Group targets and
requirements laid down by the Board of Management of Volkswagen AG or the Group Board of Management must be
complied with to the extent permitted by law. Segment reporting comprises four reportable segments: Passenger Cars,
Commercial Vehicles, Power Engineering and Financial Services.
The activities of the Passenger Cars segment cover the development of vehicles and engines, the production and sale of
passenger cars, and the corresponding genuine parts business. As a rule, the Volkswagen Groups individual passenger car
brands are combined on a consolidated basis into a single reportable segment.
The Commercial Vehicles segment primarily comprises the development, production and sale of light commercial
vehicles, trucks and buses, the corresponding genuine parts business and related services.
The activities of the Power Engineering segment consist of the development and production of large-bore diesel
engines, turbo compressors, industrial turbines and chemical reactor systems, as well as the production of gear units,
propulsion components and testing systems.
The activities of the Financial Services segment comprise dealer and customer financing, leasing, banking and
insurance activities, fleet management and mobility services.
Purchase price allocation for companies acquired is allocated directly to the corresponding segments.
At Volkswagen, segment profit or loss is measured on the basis of operating profit or loss.
In the segment reporting, the share of the profits or losses of joint ventures is contained in the share of profits and
losses of equity-accounted investments in the corresponding segments.
The reconciliation contains activities and other operations that by definition do not constitute segments. It also
includes the unallocated Group financing activities. Consolidation adjustments between the segments are also contained
in the reconciliation.
Investments in intangible assets, property, plant and equipment, and investment property are reported net of
investments under finance leases.
As a matter of principle, business relationships between the companies within the segments of the Volkswagen Group
are transacted at arms length prices.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E P O RT I N G S E G M E N T S 2 0 1 3

million

Sales revenue from

external customers
Intersegment sales revenue
Total sales revenue
Depreciation and amortization
Impairment losses
Reversal of impairment losses
Segment profit or loss
(operating profit or loss)
Share of profits and losses of
equity-accounted investments
Net interest income and
other financial result
Equity-accounted investments
Investments in intangible assets,
property, plant and equipment,
and investment property

Passenger Cars

Commercial
Vehicles

Power
Engineering

Financial
Services

Total
segments

Reconciliation

Volkswagen
Group

146,630

25,963

3,845

20,093

10,418

5,113

1,911

196,531

476

197,007

17,448

17,448

157,048

31,076

3,851

22,004

213,979

16,972

197,007

8,212

2,103

207

384

3,798

14,497

118

14,379

118

325

32

329

16

51

51

11,053

1,044

250

1,863

13,711

2,040

11,671

3,440

44

76

3,477

111

3,588

1,281

930

27

2,187

644

2,831

5,431

391

18

377

6,218

1,716

7,934

13,544

1,329

137

345

15,355

52

15,407

Passenger Cars

Commercial
Vehicles

Power
Engineering

Financial
Services

Total
segments

Reconciliation

Volkswagen
Group

150,677

24,999

3,727

22,594

201,996

462

202,458

13,389

5,206

2,327

20,927

20,927

164,065

30,205

3,732

24,920

222,922

20,464

202,458

9,549

2,133

361

4,521

16,564

125

16,439

209

69

127

406

44

450

27

31

31

11,578

901

44

1,917

14,439

1,742

12,697

3,763

14

31

3,814

174

3,988

1,053

261

17

783

1,107

1,891

7,186

399

22

433

8,039

1,835

9,874

14,039

1,851

166

517

16,574

39

16,613

R E P O RT I N G S E G M E N T S 2 0 1 4

million

Sales revenue from

external customers
Intersegment sales revenue
Total sales revenue
Depreciation and amortization
Impairment losses
Reversal of impairment losses
Segment profit or loss
(operating profit or loss)
Share of profits and losses of
equity-accounted investments
Net interest income and
other financial result
Equity-accounted investments
Investments in intangible assets,
property, plant and equipment,
and investment property

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N

million

Segment sales revenue

Unallocated activities
Group financing
Consolidation
Group sales revenue
Segment profit or loss (operating profit or loss)
Unallocated activities
Group financing

2014

2013

222,922

213,979

1,245

1,319

34

35

21,744

18,326

202,458

197,007

14,439

13,711

46

58

13

Consolidation

1,797

2,085

Operating profit

12,697

11,671

Financial result

2,097

757

14,794

12,428

Consolidated profit before tax

BY REGION 2013

Germany

Europe and
Other
Regions*

North
America

South
America

AsiaPacific

Total

Sales revenue from external customers

37,714

79,348

27,434

17,495

35,016

197,007

Intangible assets, property, plant and equipment,

lease assets and investment property

75,138

30,755

13,728

3,230

1,467

124,318

Germany

Europe and
Other
Regions*

North
America

South
America

AsiaPacific

Total

Sales revenue from external customers

39,372

83,485

27,619

13,868

38,113

202,458

Intangible assets, property, plant and equipment,

lease assets and investment property

78,147

32,665

17,489

3,324

2,548

134,174

million

* Excluding Germany.

BY REGION 2014

million

* Excluding Germany.

Allocation of sales revenue to the regions follows the destination principle.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

I NCOME STATEMENT DISC LOSU RE S

1. Sales revenue
ST R U C T U R E O F G R O U P S A L E S R E V E N U E

million

Vehicles*

2014

2013

134,627

134,274

Genuine parts

13,642

13,564

Used vehicles and third-party products*

10,090

9,540

Engines, powertrains and parts deliveries

10,021

8,441

3,728

3,845

Power Engineering
Motorcycles

458

452

16,384

13,948

Interest and similar income

6,375

6,034

Other sales revenue

7,133

6,909

202,458

197,007

Leasing business

* Prior-year figures adjusted.

For segment reporting purposes, the sales revenue of the Group is presented by segment and market.
Other sales revenue comprises revenue from workshop services, among other things.
Sales revenue from construction contracts amounted to 1,396 million (previous year, adjusted: 1,543 million) and
mainly related to the Power Engineering segment.

2. Cost of sales
Cost of sales includes interest expenses of 1,955 million (previous year: 1,948 million) attributable to the financial
services business. This item also includes impairment losses on intangible assets, property, plant and equipment, and
lease assets in the amount of 377 million (previous year: 346 million). Impairment losses are based on updated
impairment tests and reflect market and exchange rate risks in particular, as well as amended sales forecasts and reduced
product life cycles.
Government grants related to income amounted to 883 million in the fiscal year (previous year: 307 million) and
were generally allocated to the functions.

3. Distribution expenses
Distribution expenses amounting to 20,292 million (previous year: 19,655 million) include nonstaff overheads and
personnel costs, and depreciation and amortization applicable to the distribution function, as well as the costs of shipping,
advertising and sales promotions.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

4. Administrative expenses
Administrative expenses of 6,841 million (previous year: 6,888 million) mainly include nonstaff overheads and
personnel costs, as well as depreciation and amortization applicable to the administrative function.

5. Other operating income

million

2014

Income from reversal of valuation allowances on receivables and other assets

2013

559

547

Income from reversal of provisions and accruals

2,348

2,532

Income from foreign currency hedging derivatives

1,181

1,785

Income from foreign exchange gains

2,323

1,758

357

256

1,005

909

Income from sale of promotional material

Income from cost allocations
Income from investment property
Gains on asset disposals and the reversal of impairment losses
Miscellaneous other operating income

17

134

233

2,383

1,919

10,298

9,956

Foreign exchange gains mainly comprise gains from changes in exchange rates between the dates of recognition and
payment of receivables and liabilities denominated in foreign currencies, as well as exchange rate gains resulting from
measurement at the closing rate. Foreign exchange losses from these items are included in other operating expenses.

6. Other operating expenses

million

2014

2013

Valuation allowances on receivables and other assets

1,150

1,442

Losses from foreign currency hedging derivatives

1,003

985

Foreign exchange losses

1,972

2,486

Expenses from cost allocations

566

408

Expenses for termination agreements

193

76

Losses on disposal of noncurrent assets

105

151

Miscellaneous other operating expenses

214

2,004

1,796

6,992

7,343

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

7. Share of profits and losses of equity-accounted investments

million

2014

Share of profits of equity-accounted investments

of which: from joint ventures
of which: from associates
Share of losses of equity-accounted investments
of which: from joint ventures
of which: from associates

2013

4,007

3,652

(3,976)

(3,635)

(30)

(17)

19

64

(6)

(6)

(13)

(58)

3,988

3,588

2014

2013

1,435

1,494

8. Finance costs

million

Other interest and similar expenses

Interest cost included in lease payments

18

19

1,453

1,513

Net interest on the net defined benefit liability

788

752

Interest cost on other liabilities

417

101

Interest expenses

Interest cost on liabilities

1,205

853

Finance costs

2,658

2,366

2014

20131

Income from profit and loss transfer agreements

20

18

Cost of loss absorption

12

Other income from equity investments

251

69

Other expenses from equity investments

189

50

86

147

9. Other financial result

million

Income from marketable securities and loans2

Other interest and similar income

749

786

Gains and losses from remeasurement and impairment of financial instruments

72

453

181

943

Gains and losses from fair value changes of derivatives not included in hedge accounting
Gains and losses from fair value changes of derivatives included in hedge accounting

114

33

Other financial result

767

465

1 Prior-year figures adjusted.

2 Including disposal gains/losses.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

10. Income tax income/expense

C O M P O N E N T S O F TA X I N C O M E A N D E X P E N S E

million

2014

2013

Current tax expense, Germany

2,073

2,173

Current tax expense, abroad

1,559

1,560

Current income tax expense

3,632

3,733

of which prior-period income ()/expense (+)

( 230)

(278)

Deferred tax income ()/expense (+), Germany

145

334

239

116

Deferred tax income ()/expense (+), abroad

Deferred tax income ()/expense (+)
Income tax income/expense

94

449

3,726

3,283

The statutory corporation tax rate in Germany for the 2014 assessment period was 15%. Including trade tax and the
solidarity surcharge, this resulted in an aggregate tax rate of 29.8%.
A tax rate of 29.8% (previous year: 29.8%) was used to measure deferred taxes in the German consolidated tax group.
The local income tax rates applied for companies outside Germany vary between 0% and 44.6%. In the case of split tax
rates, the tax rate applicable to undistributed profits is applied.
The realization of tax benefits from tax loss carryforwards from previous years resulted in a reduction in current
income taxes in 2014 of 136 million (previous year: 356 million).
Previously unused tax loss carryforwards amounted to 12,726 million (previous year: 11,164 million). Tax loss
carryforwards amounting to 6,719 million (previous year: 9,070 million) can be used indefinitely, while 775 million
(previous year: 442 million) must be used within the next ten years. There are additional tax loss carryforwards
amounting to 5,232 million (previous year: 1,652 million) that can be used within a period of 15 or 20 years. Tax loss
carryforwards of 9,422 million (previous year: 9,002 million), of which 3,406 million (previous year 478 million) can
only be utilized subject to restrictions within the next 20 years, were estimated not to be usable overall. The decrease in tax
loss carryforwards with an unlimited carryforward period and the increase in tax loss carryforwards with a limited
carryforward period are mainly due to a change in the law governing the carryforward of tax losses in Hungary.
The benefit arising from previously unrecognized tax losses or tax credits of a prior period that is used to reduce
current tax expense amounts to 50 million (previous year: 247 million). Deferred tax expense was reduced by
49 million (previous year: 15 million) because of a benefit arising from previously unrecognized tax losses and tax
credits of a prior period. Deferred tax expense arising from the write-down of deferred tax assets amounts to 253 million
(previous year: 203 million). Deferred tax income arising from the reversal of a write-down of a deferred tax asset
amounts to 117 million (previous year: 92 million).
Tax benefits amounting to 906 million (previous year: 785 million) were recognized because of tax credits granted by
various countries.
No deferred tax assets were recognized for deductible temporary differences of 1,531 million (previous year:
620 million) and for tax credits of 504 million (previous year: 448 million) that would expire in the next 20 years, or for
tax credits of 172 million (previous year: 103 million) that will not expire.
In accordance with IAS 12.39, deferred tax liabilities of 290 million (previous year: 211 million) for temporary
differences and undistributed profits of Volkswagen AG subsidiaries were not recognized because control exists.
Due to the change in the statutory provisions in Germany, a refund claim for corporation tax was recognized as a
current tax asset for the first time in fiscal year 2006. The present value of the refund claim was 380 million at the balance
sheet date (previous year: 496 million).
Deferred tax expense resulting from changes in tax rates amounted to 7 million at Group level (previous year:
94 million income).

216

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Deferred taxes of 831 million (previous year: 411 million) were recognized without being offset by deferred tax liabilities
in the same amount. The companies concerned expect positive tax income in future following losses in the fiscal year under
review or in the previous year.
5,180 million (previous year: 1,394 million) of the deferred taxes recognized in the balance sheet was credited to
equity and relates to other comprehensive income. 2 million of this figure (previous year: 31 million) is attributable to
noncontrolling interests. There were effects from capital transactions with noncontrolling interest shareholders in the
reporting period and the prior-year period. Changes in deferred taxes classified by balance sheet item are presented in the
statement of comprehensive income.
In the reporting period, tax effects of 19 million resulting from equity transaction costs were credited directly to the
capital reserves.

D E F E R R E D TA X E S C L A S S I F I E D B Y B A L A N C E S H E E T I T E M

The following recognized deferred tax assets and liabilities were attributable to recognition and measurement differences
in the individual balance sheet items and to tax loss carryforwards:

DEFERRED TAX ASSETS

million

Dec. 31, 2014

Intangible assets

DEFERRED TAX LIABILITIES

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

306

249

9,479

9,216

3,767

3,782

6,092

5,229

13

39

37

32

Inventories

1,883

1,825

697

650

Receivables and other assets (including Financial Services Division)

1,398

1,420

6,632

6,621

Other current assets

1,459

1,316

16

73

Pension provisions

6,050

3,592

242

241

Liabilities and other provisions

8,660

6,676

869

1,222

Tax loss carryforwards, net of valuation allowances

1,129

726

228

230

433

278

24,460

19,577

24,065

23,284

(15,999)

(11,914)

(20,013)

(19,281)

20,207

15,539

20,207

15,539

Consolidation

1,625

1,584

916

149

Amount recognized

5,878

5,622

4,774

7,894

Property, plant and equipment, and lease assets

Noncurrent financial assets

Tax credits, net of valuation allowances

Valuation allowances on other deferred tax assets
Gross value
of which noncurrent
Offset

In accordance with IAS 12, deferred tax assets and liabilities are offset if, and only if, they relate to income taxes levied by
the same taxation authority and relate to the same tax period.
The tax expense of 3,726million reported for 2014 (previous year: 3,283 million) was 683 million (previous year:
383 million) lower than the expected tax expense of 4,409 million that would have resulted from application of a tax rate
applicable to undistributed profits of 29.8% to the profit before tax of the Group.

217

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N O F E X P E C T E D TO E F F E C T I V E I N C O M E TA X

million

Profit before tax

Expected income tax expense
(tax rate 29.8%; previous year: 29.5%)

2014

2013

14,794

12,428

4,409

3,666

92

160

1,423

1,303

Reconciliation:
Effect of different tax rates outside Germany
Proportion of taxation relating to:
tax-exempt income
expenses not deductible for tax purposes

336

379

effects of loss carryforwards and tax credits

334

118

23

303

Tax credits

permanent differences

112

86

Prior-period tax expense

271

349

94

Nondeductible withholding tax

308

273

Other taxation changes

253

74

3,726

3,283

25.2

26.4

Effect of tax rate changes

Effective income tax expense

Effective tax rate (%)

11. Earnings per share

Basic earnings per share are calculated by dividing profit attributable to Volkswagen AG shareholders by the weighted
average number of ordinary and preferred shares outstanding during the reporting period.
During the reporting period, Volkswagen AG implemented a capital increase from authorized capital against cash
contributions, with existing shareholders' preemptive rights disapplied, by issuing preferred shares. Since their
admission to the regulated market on June 12, 2014, these new preferred shares have been included in the calculation of
earnings per share.
IAS 33.23 sets out that all potential shares that will be issued upon the conversion of a mandatory convertible note must
be accounted for as issued shares and included in the calculation of basic and diluted earnings per share. The number of
outstanding preferred shares is therefore increased by the potential preferred shares that would be issued if the
mandatory convertible notes issued were actually to be converted. The average number of preferred shares not yet
converted that have to be included is calculated based on the maximum conversion ratio resulting from the current
minimum conversion price of 147.61. The terms and conditions required the minimum conversion price to be adjusted
following the distribution of the dividend. The number of potential preferred shares was calculated retrospectively at the
new minimum conversion price in accordance with IAS 33.26, including for the previous year. The finance costs
associated with the mandatory convertible notes are not included in the calculation of consolidated profit because the
interest component was recognized in other comprehensive income when the note was issued, and interest expense arises
only from the amount of compound interest. Since the number of basic and diluted shares is identical, basic earnings per
share also correspond to diluted earnings per share. In total, the existing mandatory convertible notes still entitle the
holders to subscribe for a maximum of 25,032,179 no-par value preferred shares of Volkswagen AG.
See note 24 for further information regarding the issuance of the mandatory convertible note and the capital increase.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

ORDINARY

Quantity

PREFERRED

2014

2013

2014

2013*

Weighted average number of

shares outstanding basic

295,089,818

295,089,818

200,990,701

191,453,836

Weighted average number of

shares outstanding diluted

295,089,818

295,089,818

200,990,701

191,453,836

2014

2013*

11,068

9,145

84

52

* Prior-year figures adjusted to reflect application of IAS 33.26.

million

Profit after tax

Noncontrolling interests
Profit attributable to Volkswagen AG hybrid capital investors

138

27

10,847

9,066

Basic earnings attributable to ordinary shares

6,445

5,491

Diluted earnings attributable to ordinary shares

6,445

5,491

Basic earnings attributable to preferred shares

4,402

3,574

Diluted earnings attributable to preferred shares

4,402

3,574

2014

2013*

Basic earnings per ordinary share

21.84

18.61

Diluted earnings per ordinary share

21.84

18.61

Basic earnings per preferred share

21.90

18.67

Diluted earnings per preferred share

21.90

18.67

Profit attributable to Volkswagen AG shareholders

* Prior-year figures adjusted to reflect application of IAS 33.26.

* Prior-year figures adjusted to reflect application of IAS 33.26.

219

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Additional Income Statement Disclosures in Accordance with IAS 23 (Borrowing Costs)

Capitalized borrowing costs amounted to 85 million (previous year: 74 million) and related mainly to capitalized
development costs. An average cost of debt of 2.2% (previous year: 2.4%) was used as a basis for capitalization in the
Volkswagen Group.

Additional Income Statement Disclosures in Accordance with IFRS 7

(Financial Instruments)
C L A S S E S O F F I N A N C I A L I N ST R U M E N T S

Financial instruments are divided into the following classes at the Volkswagen Group:
> financial instruments measured at fair value,
> financial instruments measured at amortized cost and
> financial instruments not falling within the scope of IFRS 7.
Financial instruments not falling within the scope of IFRS 7 include in particular investments in associates and joint
ventures accounted for using the equity method.

N E T G A I N S O R L O S S E S F R O M F I N A N C I A L I N ST R U M E N T S B Y I A S 3 9 M E A S U R E M E N T C AT E G O RY

million

2014

2013

Financial instruments at fair value through profit or loss

220

756

Loans and receivables

5,357

3,386

Available-for-sale financial assets

Financial liabilities measured at amortized cost

592

193

3,921

3,851

1,808

1,027

Net gains and losses from financial assets and liabilities at fair value through profit or loss are composed of the fair value
measurement gains and losses on derivatives, including interest and gains and losses on currency translation.
Net gains and losses from available-for-sale financial assets primarily comprise income and expenses from marketable
securities including disposal gains/losses, impairment losses on investments and currency translation effects.
Net gains and losses from loans and receivables and from financial liabilities carried at amortized cost comprise
interest income and expenses in accordance with the effective interest method under IAS 39, including currency
translation effects. Interest also includes interest income and expenses from the lending business of the financial services
operations.

220

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

TOTA L I N T E R E ST I N C O M E A N D E X P E N S E S AT T R I B U TA B L E TO F I N A N C I A L I N ST R U M E N T S N OT M E A S U R E D AT FA I R VA L U E
THROUGH PROFIT OR LOSS

million

2014

2013

Interest income

5,267

4,925

Interest expenses

3,683

3,981

1,584

943

2014

2013

I M PA I R M E N T L O S S E S O N F I N A N C I A L A S S E T S B Y C L A S S

million

Measured at fair value

Measured at amortized cost

1,295

1,470

1,297

1,472

Impairment losses relate to write-downs of financial assets, such as valuation allowances on receivables, marketable
securities and unconsolidated subsidiaries. Interest income on impaired financial assets amounted to 46 million in the
fiscal year (previous year: 47 million).
In fiscal year 2014, 6 million (previous year: 5 million) was recognized as an expense and 66 million (previous year:
52 million) as income from fees and commissions for trust activities and from financial assets and liabilities not
measured at fair value that are not accounted for using the effective interest method.

221

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

BALANC E SH EET DISC LOSU RES

12. Intangible assets

C H A N G E S I N I N TA N G I B L E A S S E T S I N T H E P E R I O D J A N U A RY 1 T O D E C E M B E R 3 1 , 2 0 1 3

Brand names

Goodwill

Capitalized
development costs
for products
under
development

17,135

23,889

3,627

17,422

8,441

70,513

42

177

66

263

270

818

Changes in
consolidated Group

18

38

57

Additions

3,390

631

351

4,373

Transfers

1,850

1,856

23

22

Disposals

15

422

185

622

17,088

23,730

5,087

19,224

8,352

73,481

Amortization and
impairment
Balance at Jan. 1, 2013

56

27

8,160

3,158

11,401

Foreign exchange differences

156

132

294

13

2,378

1,197

3,589
96

million

Cost
Balance at Jan. 1, 2013
Foreign exchange differences

Balance at Dec. 31, 2013

Changes in
consolidated Group
Additions to cumulative
amortization
Additions to cumulative
impairment losses

Capitalized
development
costs for
products
currently in use

Other
intangible
assets

Total

85

10

Transfers

Disposals

392

168

560

Reversal of impairment
losses

Balance at Dec. 31, 2013

59

24

10,085

4,070

14,238

17,029

23,730

5,063

9,139

4,282

59,243

Carrying amount at
Dec. 31, 2013

222

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C H A N G E S I N I N TA N G I B L E A S S E T S I N T H E P E R I O D J A N U A RY 1 T O D E C E M B E R 3 1 , 2 0 1 4

Brand names

Goodwill

Capitalized
development costs
for products
under
development

17,088

23,730

5,087

19,224

8,352

73,481

53

161

30

15

166

Changes in
consolidated Group

53

62

Additions

3,652

949

360

4,961

Transfers

10

2,306

2,307

16

26

Disposals

1,100

504

1,611

million

Cost
Balance at Jan. 1, 2014
Foreign exchange differences

Balance at Dec. 31, 2014

Capitalized
development
costs for
products
currently in use

Other
intangible
assets

Total

17,045

23,577

6,428

21,409

8,292

76,752

Amortization and
impairment
Balance at Jan. 1, 2014

59

24

10,085

4,070

14,238

Foreign exchange differences

10

17

32

Changes in
consolidated Group

Additions to cumulative
amortization

10

2,948

1,050

4,009

Additions to cumulative
impairment losses

10

67

13

91

Transfers

Disposals

1,031

505

1,536

Reversal of impairment
losses

13

20

Balance at Dec. 31, 2014

79

14

12,085

4,639

16,818

16,967

23,577

6,413

9,324

3,654

59,935

Carrying amount at
Dec. 31, 2014

Other intangible assets comprise in particular concessions, purchased customer lists and dealer relationships, industrial
and similar rights, and licenses in such rights and assets.

223

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The allocation of the brand names and goodwill to the operating segments is shown in the following table:

million

2014

2013

Brand names by operating segment

Porsche

13,823

13,823

Scania Vehicles and Services

1,036

1,098

MAN Truck & Bus

1,127

1,127

MAN Diesel & Turbo

415

415

Ducati

404

404

Other

162

163

16,967

17,029

18,825

18,825

2,978

3,158

MAN Truck & Bus

595

576

MAN Diesel & Turbo

250

247

Ducati

290

290

KODA

146

148

Porsche Holding Salzburg

191

181

Other

303

305

23,577

23,730

Goodwill by operating segment

Porsche
Scania Vehicles and Services

The recoverability test for recognized goodwill is based on value in use and is not affected by a variation in the growth
forecast or in the discount rate of +/0.5 percentage points.
Of the total research and development costs incurred in 2014, 4,601 million (previous year: 4,021 million) met the
criteria for capitalization under IFRSs.
The following amounts were recognized in profit or loss:

million

2014

2013

Research and noncapitalized development costs

8,519

7,722

Amortization of development costs

3,026

2,464

11,545

10,186

Research and development costs recognized in the income statement

224

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

13. Property, plant and equipment

C H A N G E S I N P R O P E RT Y, P L A N T A N D E Q U I P M E N T I N T H E P E R I O D J A N U A RY 1 TO D E C E M B E R 3 1 , 2 0 1 3

Land, land rights

and buildings,
including
buildings on
third-party land

Technical
equipment and
machinery

Other
equipment,
operating and
office equipment

Payments on
account and
assets under
construction

Total

24,633

33,657

46,499

5,657

110,446

540

908

874

185

2,508

Changes in consolidated Group

137

15

30

75

258

Additions

897

2,016

3,506

4,642

11,061

Transfers

1,288

1,322

1,340

3,954

Disposals

139

942

1,203

77

2,362

Balance at Dec. 31, 2013

26,277

35,159

49,297

6,158

116,891

Depreciation and impairment

Balance at Jan. 1, 2013

10,315

24,395

36,282

30

71,022

Foreign exchange differences

188

621

654

1,468

million

Cost
Balance at Jan. 1, 2013
Foreign exchange differences

Changes in consolidated Group

Additions to cumulative depreciation
Additions to cumulative impairment losses

45

12

66

824

2,226

3,637

6,689

11

97

118

Transfers

13

42

43

12

Disposals

54

852

970

1,877

25

35

Balance at Dec. 31, 2013

10,939

25,091

38,447

26

74,503

Carrying amount at Dec. 31, 2013

15,338

10,068

10,850

6,132

42,389

282

16

16

314

Reversal of impairment losses

of which assets leased under finance leases

Carrying amount at Dec. 31, 2013

Future finance lease payments due, and their present values, are shown in the following table:

million

2014

2015 2018

from 2019

Total

Finance lease payments

65

179

279

523

Interest component of finance lease payments

11

24

68

103

Carrying amount of liabilites

54

155

211

420

225

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C H A N G E S I N P R O P E RT Y, P L A N T A N D E Q U I P M E N T I N T H E P E R I O D J A N U A RY 1 TO D E C E M B E R 3 1 , 2 0 1 4

Land, land rights

and buildings,
including
buildings on
third-party land

Technical
equipment and
machinery

Other
equipment,
operating and
office equipment

Payments on
account and
assets under
construction

Total

26,277

35,159

49,297

6,158

116,891

43

161

495

15

713

Changes in consolidated Group

139

19

166

Additions

894

1,511

4,005

5,150

11,560

Transfers

1,256

2,065

1,364

4,696

11

Disposals

120

1,021

1,249

40

2,430

Balance at Dec. 31, 2014

28,489

37,873

53,922

6,607

126,890

Depreciation and impairment

Balance at Jan. 1, 2014

10,939

25,091

38,447

26

74,503

Foreign exchange differences

36

122

405

567

Changes in consolidated Group

32

32

934

2,491

4,079

7,509
143

million

Cost
Balance at Jan. 1, 2014
Foreign exchange differences

Additions to cumulative depreciation

Additions to cumulative impairment losses

26

98

13

Transfers

20

20

Disposals

47

929

1,051

2,027

Reversal of impairment losses

Balance at Dec. 31, 2014

11,906

26,779

42,000

36

80,721

Carrying amount at Dec. 31, 2014

16,582

11,095

11,921

6,570

46,169

276

11

13

299

of which assets leased under finance leases

Carrying amount at Dec. 31, 2014

Options to purchase buildings and plant leased under the terms of finance leases exist in most cases, and are also expected
to be exercised.
Future finance lease payments due, and their present values, are shown in the following table:

million

2015

2016 2019

from 2020

Total

Finance lease payments

56

222

318

596

Interest component of finance lease payments

23

64

113

200

Carrying amount of liabilites

34

158

204

396

For assets leased under operating leases, payments recognized in the income statement amounted to 1,330 million
(previous year: 1,273 million). With respect to internally used assets, 1,171 million (previous year: 1,136 million) of
this figure is attributable to minimum lease payments and 50 million (previous year: 51 million) to contingent lease
payments. The payments of 109 million (previous year: 86 million) under subleases primarily relate to minimum lease
payments.

226

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Government grants of 110 million (previous year: 295 million) were deducted from the cost of property, plant and
equipment, and noncash benefits received amounting to 0 million (previous year: 8 million) were not capitalized as the
cost of assets.
Real property liens of 628 million (previous year: 661 million) are pledged as collateral for financial liabilities
related to land and buildings.

14. Lease assets and investment property

C H A N G E S I N L E A S E A S S E T S A N D I N V E ST M E N T P R O P E RT Y I N T H E P E R I O D J A N U A RY 1 TO D E C E M B E R 3 1 , 2 0 1 3

million

Lease assets

Investment property

Total

25,453

626

26,079

908

12

920

11,890

32

11,923

Transfers

32

31

Disposals

6,558

46

6,604

29,878

633

30,511

Balance at Jan. 1, 2013

5,419

194

5,612

Foreign exchange differences

212

215

4,087

14

4,101
108

Cost
Balance at Jan. 1, 2013
Foreign exchange differences
Changes in consolidated Group
Additions

Balance at Dec. 31, 2013

Depreciation and impairment

Changes in consolidated Group

Additions to cumulative depreciation
Additions to cumulative impairment losses

107

Transfers

12

12

Disposals

1,766

13

1,779

Reversal of impairment losses

Balance at Dec. 31, 2013
Carrying amount at Dec. 31, 2013

16

16

7,619

205

7,824

22,259

427

22,687

The following payments from noncancelable leases and rental agreements were expected to be received over the coming
years:

million

Lease payments

227

2014

2015 2018

from 2019

Total

2,635

2,971

23

5,628

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C H A N G E S I N L E A S E A S S E T S A N D I N V E ST M E N T P R O P E RT Y I N T H E P E R I O D J A N U A RY 1 TO D E C E M B E R 3 1 , 2 0 1 4

million

Lease assets

Investment property

Total

29,878

633

30,511

2,052

31

2,084

547

547

13,998

100

14,098

Transfers

18

10

Disposals

9,703

10

9,713

36,780

736

37,516

Cost
Balance at Jan. 1, 2014
Foreign exchange differences
Changes in consolidated Group
Additions

Balance at Dec. 31, 2014

Depreciation and impairment
Balance at Jan. 1, 2014

7,619

205

7,824

Foreign exchange differences

466

474

Changes in consolidated Group

125

125

4,907

15

4,922
150

Additions to cumulative depreciation

Additions to cumulative impairment losses

121

29

Transfers

Disposals

4,039

4,042

Reversal of impairment losses

Balance at Dec. 31, 2014
Carrying amount at Dec. 31, 2014

9,195

251

9,446

27,585

485

28,070

Lease assets include assets leased out under the terms of operating leases and assets covered by long-term buy-back
agreements.
Investment property includes apartments rented out and leased dealerships with a fair value of 890 million (previous
year: 732 million). Fair value is estimated using an investment method based on internal calculations (Level 3 of the fair
value hierarchy). Operating expenses of 53 million (previous year: 47 million) were incurred for the maintenance of
investment property in use. Expenses of 3 million (previous year: 0 million) were incurred for unused investment
property.
The following payments from noncancelable leases and rental agreements are expected to be received over the coming
years:

million

Lease payments

228

2015

2016 2019

from 2020

Total

3,253

3,528

6,782

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

15. Equity-accounted investments and other equity investments

C H A N G E S I N E Q U I T Y- A C C O U N T E D I N V E STM E N T S A N D O T H E R E Q U I T Y I N V E ST M E N T S
I N T H E P E R I O D J A N U A RY 1 T O D E C E M B E R 3 1 , 2 0 1 3

Equityaccounted
investments

Other equity
investments

Total

7,362

4,107

11,469

24

30

Changes in consolidated Group

259

262

Additions

38

297

335

Transfers

27

27

Disposals

23

25

3,612

3,612

2,827

2,827

million

Gross carrying amount

at Jan. 1, 2013
Foreign exchange differences

Changes recognized in profit or loss

Dividends
Other changes recognized in other comprehensive income

170

88

82

Balance at Dec. 31, 2013

8,014

4,177

12,191
290

Impairment losses
Balance at Jan. 1, 2013

53

236

Foreign exchange differences

Changes in consolidated Group

31

31

Additions

26

37

63

Transfers

Disposals

Reversal of impairment losses

80

237

316

7,934

3,941

11,875

Balance at Dec. 31, 2013

Carrying amount at Dec. 31, 2013

229

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C H A N G E S I N E Q U I T Y- A C C O U N T E D I N V E STM E N T S A N D O T H E R E Q U I T Y I N V E ST M E N T S
I N T H E P E R I O D J A N U A RY 1 T O D E C E M B E R 3 1 , 2 0 1 4

million

Gross carrying amount

at Jan. 1, 2014

Equityaccounted
investments

Other equity
investments

Total

12,191

8,014

4,177

Foreign exchange differences

205

12

217

Changes in consolidated Group

335

1,001

666

Additions

36

292

329

Transfers

Disposals

96

96

3,987

3,987

2,997

2,997

Changes recognized in profit or loss

Dividends
Other changes recognized in other comprehensive income
Balance at Dec. 31, 2014
Impairment losses
Balance at Jan. 1, 2014

376

630

1,005

9,955

4,014

13,968
316

80

237

Foreign exchange differences

Changes in consolidated Group

Additions

172

172

Transfers

Disposals

72

72

Reversal of impairment losses

Balance at Dec. 31, 2014
Carrying amount at Dec. 31, 2014

80

331

411

9,874

3,683

13,557

Equity-accounted investments include joint ventures in the amount of 9,159 million (previous year: 7,563 million) and
associates in the amount of 715 million (previous year: 370 million).
335 million of the changes in the consolidated Group between equity-accounted investments and other equity
investments related to the reclassification of the shares in Bertrandt because of the change in the method of inclusion. The
acquisition of the additional shares in Bertrandt in the amount of 40 million was previously reported under additions of
other equity investments. Further information can be found under Basis of consolidation/Investments in associates.
Of the other changes recognized in other comprehensive income, 379 million (previous year: 162 million) is
attributable to joint ventures and 3 million (previous year: 7 million) to associates. They are mainly the result of
foreign exchange differences in the amount of 397 million (previous year: 136 million), pension plan remeasurements
in the amount of 6 million (previous year: 9 million) and losses on the fair value measurement of cash flow hedges in
the amount of 23 million (previous year: 36 million).

230

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

16. Noncurrent and current financial services receivables

FAIR
CARRYING AMOUNT

million

FAIR

VALUE

CARRYING AMOUNT

VALUE

Current

Noncurrent

Dec. 31, 2014

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

Dec. 31, 2013

Customer financing

21,163

41,681

62,844

64,778

17,998

35,965

53,963

55,562

Dealer financing

13,343

1,570

14,913

14,897

11,658

1,368

13,026

12,987

198

198

199

183

184

184

34,704

43,252

77,956

79,873

29,839

37,334

67,173

68,733

281

281

281

214

214

214

Receivables from
financing business

Direct banking
Receivables from
operating leases
Receivables from
finance leases

9,413

14,625

24,038

24,296

8,332

13,864

22,196

22,639

44,398

57,877

102,275

104,450

38,386

51,198

89,583

91,586

The receivables from customer financing and finance leases contained in financial services receivables of 102.3 billion
(previous year: 89.6 billion) increased by 39 million as a result of a fair value adjustment from portfolio hedging
(previous year: decrease of 34 million).
The receivables from customer and dealer financing are secured by vehicles or real property liens. Collateral of
344 million (previous year: 351 million) has been furnished for financial liabilities and contingent liabilities.
The receivables from dealer financing include 98 million (previous year: 71 million) receivable from unconsolidated affiliated companies.
The receivables from finance leases almost entirely in respect of vehicles were or are expected to generate the
following cash flows as of December 31, 2013 and December 31, 2014:

million

2014

2015 2018

from 2019

Total

Future payments from finance

lease receivables

8,939

14,623

122

23,684

Unearned finance income from

finance leases (discounting)

607

879

1,488

Present value of minimum lease

payments outstanding at the
reporting date

8,332

13,744

120

22,196

2015

2016 2019

from 2020

Total

million

Future payments from finance

lease receivables

10,074

15,474

84

25,632

Unearned finance income from

finance leases (discounting)

661

929

1,594

Present value of minimum lease

payments outstanding at the
reporting date

9,413

14,545

80

24,038

Accumulated valuation allowances for uncollectible minimum lease payments receivable amount to 97 million (previous
year: 112 million).

231

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

17. Noncurrent and current other financial assets

CARRYING AMOUNT

million

CARRYING AMOUNT

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

1,551

2,047

3,598

1,680

2,414

4,094

1,546

1,546

1,565

1,565

Receivables from loans,

bonds, profit
participation rights
(excluding interest)

3,533

2,170

5,704

2,729

2,472

5,201

Miscellaneous financial assets

2,608

735

3,343

2,182

590

2,772

7,693

6,498

14,190

6,591

7,040

13,631

Positive fair value

of derivatives
Marketable securities

Other financial assets include receivables from related parties of 5,055 million (previous year: 5,170 million). Other
financial assets and current marketable securities of 2,942 million (previous year: 3,119 million) were furnished as
collateral for financial liabilities and contingent liabilities. There is no original right of disposal or pledge for the furnished
collateral on the part of the collateral taker.
There are restrictions on the disposal of the certificates of deposit amounting to 1.4 billion reported in noncurrent
securities (see the disclosures on Interests in joint ventures). In addition, the miscellaneous other financial assets
include cash and cash equivalents that serve as collateral (mainly under asset-backed securities transactions).
The positive fair values of derivatives relate to the following items:

million

Dec. 31, 2014

Dec. 31, 2013

foreign currency risk from assets using fair value hedges

212

97

foreign currency risk from liabilities using fair value hedges

190

55

interest rate risk using fair value hedges

681

340

interest rate risk using cash flow hedges

Transactions for hedging

foreign currency and price risk from future cash flows

(cash flow hedges)
Hedging transactions
Assets related to derivatives not included in hedging relationships

1,690

3,225

2,778

3,721

820

373

3,598

4,094

The positive fair value of transactions for hedging price risk from future cash flows (cash flow hedges) amounted to
1 million (previous year: 21 million).
Positive fair values of 1 million (previous year: 20 million) were recognized from transactions for hedging interest
rate risk (fair value hedges) used in portfolio hedges.
Further details on derivative financial instruments as a whole are given in note 34.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

18. Noncurrent and current other receivables

CARRYING AMOUNT

million

Current

CARRYING AMOUNT

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

3,207

Other recoverable income

taxes

3,474

290

3,764

3,111

96

Miscellaneous receivables

1,605

1,365

2,970

1,919

1,360

3,279

5,080

1,654

6,734

5,030

1,456

6,486

Miscellaneous receivables include assets to fund post-employment benefits in the amount of 75 million (previous year:
65 million). This item also includes the share of the technical provisions attributable to reinsurers amounting to
87 million (previous year: 98 million).
Current other receivables are predominantly non-interest-bearing.

19. Tax assets

CARRYING AMOUNT

million

CARRYING AMOUNT

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

5,622

5,878

5,878

5,622

1,010

468

1,479

729

633

1,362

1,010

6,346

7,357

729

6,255

6,984

Dec. 31, 2014

Dec. 31, 2013

Raw materials, consumables and supplies

3,941

3,716

Work in progress

3,552

3,096

20,156

18,284

3,679

3,418

Deferred tax assets

Tax receivables

4,718 million (previous year: 4,393 million) of the deferred tax assets is due within one year.

20. Inventories

million

Finished goods and purchased merchandise

Current lease assets
Prepayments

139

140

31,466

28,653

Of the total inventories, 4,029 million (previous year: 4,211 million) is recognized at net realizable value. At the same
time as the relevant revenue was recognized, inventories in the amount of 158,108 million were included in cost of sales
(previous year: 152,290 million). Valuation allowances recognized as expenses in the reporting period amounted to
785 million (previous year: 911 million). Vehicles amounting to 207 million (previous year: 220 million) were
assigned as collateral for partial retirement obligations.

233

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

21. Trade receivables

million

Dec. 31, 2014

Dec. 31, 2013

9,142

9,126

Trade receivables from

third parties
affiliated companies
joint ventures

230

266

2,037

1,712

58

26

associates
other investees and investors

11,472

11,133

The fair values of the trade receivables correspond to the carrying amounts.
The trade receivables include receivables from construction contracts accounted for using the percentage of
completion (PoC) method. These are calculated as follows:

million

Contract costs and proportionate contract profit/loss of construction contracts

Dec. 31, 2014

Dec. 31, 2013

1,327

1,575

66

49

of which billed to customers

Exchange rate effects

PoC receivables, gross

1,267

1,523

Prepayments received

1,065

1,272

202

251

PoC receivables, net

Other payments received on account of construction contracts in the amount of 375 million (previous year: 350 million),
for which no construction costs have yet been incurred, are recognized under other liabilities.

22. Marketable securities

The marketable securities serve to safeguard liquidity. Marketable securities are quoted, mainly short-term fixed-income
securities and shares allocated to the available-for-sale financial instruments category.

23. Cash, cash equivalents and time deposits

million

Bank balances

Dec. 31, 2014

Dec. 31, 2013

18,815

22,997

Checks, cash-in-hand, bills and call deposits

309

181

19,123

23,178

Bank balances are held at various banks in different currencies and include time deposits, for example.

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Notes to the Consolidated Financial Statements

24. Equity
The subscribed capital of Volkswagen AG is composed of no-par value bearer shares with a notional value of 2.56. As well
as ordinary shares, there are preferred shares that entitle the bearer to a 0.06 higher dividend than ordinary shares, but
do not carry voting rights.
In January 2014, Volkswagen AG issued 22,103 newly created preferred shares (notional value: 56,584) resulting
from the exercise of mandatory convertible notes.
The Annual General Meeting on April 19, 2012 resolved to create authorized capital of up to 110 million, expiring on
April 18, 2017, for the issue of new ordinary bearer shares or preferred shares based. In June 2014, Volkswagen AG issued
10,471,204 new preferred shares (with a notional value of 27 million), with the result that the remaining authorized
capital amounts to 83 million. Volkswagen AG recorded a cash inflow of 2,000 million from the capital increase, less
transaction costs of 20 million.
Following the capital increases, the subscribed capital is composed of 295,089,818 no-par value ordinary shares and
180,641,478 no-par value preferred shares, and amounts to 1,218 million (December 31, 2013: 1,191 million).
The Annual General Meeting on April 22, 2010 resolved to create contingent capital in the amount of up to 102 million expiring on April 21, 2015 that can be used to issue up to 5 billion in bonds with warrants and/or convertible bonds.
To date, Volkswagen has used this contingent capital as follows:
> In November 2012, via a subsidiary, Volkswagen International Finance N.V. Amsterdam/the Netherlands (issuer),
Volkswagen AG placed a 2.5 billion mandatory convertible note that entitles and obliges holders to subscribe for
Volkswagen preferred shares. The preemptive rights of existing shareholders were disapplied. The convertible note
bears a coupon of 5.50% and matures on November 9, 2015.
> In June 2013, Volkswagen placed another 1.2 billion mandatory convertible note to supplement the mandatory
convertible note issued in November 2012. The features of the new mandatory convertible note correspond to those of
the mandatory convertible note issued in November 2012. It was issued at a price of 105.64% of the principal amount.
Additionally, accrued interest (1 million) was received and deferred. The new mandatory convertible note also matures
on November 9, 2015.
The current minimum conversion price for the mandatory convertible notes is 147.61, and the maximum conversion
price is 177.13. The conversion price will be adjusted if certain events occur. The convertible notes will be settled by
issuing new preferred shares no later than at maturity. The issuer is entitled to convert the mandatory convertible notes at
any time at the minimum conversion price. The note terms and conditions also provide for early conversion options. This
voluntary conversion right was exercised in the reporting period, with a total of 4 million of the notes being converted into
22,103 newly created preferred shares at the effective maximum conversion price at the conversion date.
Following the approval by the Annual General Meeting of MAN SE of the conclusion of the control and profit and loss
transfer agreement between MAN SE and Truck & Bus GmbH on June 6, 2013, Volkswagen is obliged to pay a cash
settlement to the remaining noncontrolling interest shareholders of MAN SE. For this reason, the noncontrolling interests
in the equity of MAN SE and the interest in Scania AB attributable to those noncontrolling interest shareholders were
derecognized from Group equity as of this date. At the same time, a liability was recognized in accordance with the cash
settlement offer for the obligation to acquire the shares. MAN SE's profit or loss is attributed in full to the shareholders of
Volkswagen AG.
On March 14, 2014, Volkswagen AG published an offer to the shareholders of Scania Aktiebolag, Sdertlje,
(Scania) to acquire all Scania shares. The offer was completed on May 13, 2014 and Volkswagen initiated a squeeze-out
for the Scania shares that were not tendered in the course of the offer. Scania shares were delisted from the NASDAQ OMX
Stockholm at the end of June 5, 2014. The Groups retained earnings were reduced by the total value of the offer
amounting to 6,650 million as a capital transaction with noncontrolling interest shareholders recognized directly in
equity. At the same time, the equity interest in Scania previously attributable to the noncontrolling interest shareholders in
Scania amounting to 2,123 million was reclassified from noncontrolling interests to the reserves attributable to the
shareholders of Volkswagen AG. For information on the acquisition of the noncontrolling interests in Scania, see also the
disclosures on the basis of consolidation.
In March 2014, Volkswagen AG placed unsecured subordinated hybrid notes with an aggregate principal amount of
3 billion via a subsidiary, Volkswagen International Finance N.V. Amsterdam/the Netherlands (issuer). The perpetual
hybrid notes were issued in two tranches and can be called by the issuer. The first call date for the first tranche (1.25 billion and a coupon of 3.750%) is after seven years, and the first call date for the second tranche (1.75 billion and a coupon
of 4.625%) is after twelve years. Interest may be accumulated depending on whether a dividend is paid to Volkswagen AG

235

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

shareholders. Under IAS 32, the hybrid notes must be classified in their entirety as equity. The capital raised was
recognized in equity, less a discount and transaction costs and net of deferred taxes. The interest payments payable to the
noteholders will be recognized directly in equity, net of income taxes.
C H A N G E I N O R D I N A RY A N D P R E F E R R E D S H A R E S A N D S U B S C R I B E D C A P I TA L

SHARES

Balance at January 1
Capital increase
Conversion of mandatory convertible notes
Balance at December 31

2014

2013

2014

2013

465,237,989

465,232,596

1,191,009,252

1,190,995,446

10,471,204

26,806,282

22,103

5,393

56,584

13,806

475,731,296

465,237,989

1,217,872,118

1,191,009,252

The capital reserves comprise the share premium totaling 14,290 million (previous year: 12,332 million) from capital
increases, the share premium of 219 million from the issuance of bonds with warrants and an amount of 107 million
appropriated on the basis of the capital reduction implemented in 2006. The capital reserves increased by 1,959 million
in the reporting period due to the implementation of the capital increase (previous year: by 1,149 million due to the
issuance of the mandatory convertible note). As a portion of the mandatory convertible note that had been issued was
converted in fiscal year 2014, an amount of 56,584 (previous year: 13,806) was reclassified from the capital reserves to
subscribed capital (see also note 11). No amounts were withdrawn from the capital reserves.
DIVIDEN D PROPOSAL

In accordance with section 58(2) of the Aktiengesetz (AktG German Stock Corporation Act), the dividend payment by
Volkswagen AG is based on the net retained profits reported in the annual financial statements of Volkswagen AG prepared
in accordance with the German Commercial Code. Based on these annual financial statements of Volkswagen AG, net
retained profits of 2,299 million are eligible for distribution following the appropriation of 180 million to the revenue
reserves. The Board of Management and Supervisory Board will propose to the Annual General Meeting that a total
dividend of 2,294 million, i.e. 4.80 per ordinary share and 4.86 per preferred share, be paid from the net retained
profits. Shareholders are not entitled to a dividend payment until it has been resolved by the Annual General Meeting.
A dividend of 4.00 per ordinary share and 4.06 per preferred share was distributed in fiscal year 2014.
N O N C O N T R O L L I N G I N T E R E ST S

As of December 31, 2014, total noncontrolling interests amounted to 198 million (previous year: 2,304 million). As of
December 31, 2013, 2,115 million was attributable to Scania AB. Since May 13, 2014, there have been no noncontrolling
interests in relation to Scania. The other noncontrolling interests in equity are attributable primarily to shareholders of
RENK AG and AUDI AG and are immaterial individually and in the aggregate.

236

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Summarized financial information for the Scania subgroup up to the completion of the takeover offer on May 13, 2014 is
shown in the following tables:

million

Scania

Jan. 1 May 13, 2014

Sales revenue

3,701

Post-tax profit or loss from continuing operations

183

Post-tax profit or loss from discontinued operations

Other comprehensive income

237

Total comprehensive income

53

Comprehensive income attributable to noncontrolling interests

Dividends paid to noncontrolling interests

Jan. 1 Dec. 31, 2013

Sales revenue

10,360

Post-tax profit or loss from continuing operations

520

Post-tax profit or loss from discontinued operations

Other comprehensive income

310

Total comprehensive income

210

Comprehensive income attributable to noncontrolling interests

123

Dividends paid to noncontrolling interests

167

million

Scania

Jan. 1 May 13, 2014

Cash flows from operating activities

229

Cash flows from investing activities

224

Cash flows from financing activities

298

Effect of exchange rate changes on cash and cash equivalents

33

Net increase (net decrease) in cash and cash equivalents

270

Jan. 1 Dec. 31, 2013

Cash flows from operating activities

570

Cash flows from investing activities

403

Cash flows from financing activities

442

Effect of exchange rate changes on cash and cash equivalents

35

Net increase (net decrease) in cash and cash equivalents

309

237

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

25. Noncurrent and current financial liabilities

The details of noncurrent and current financial liabilities are presented in the following table:

CARRYING AMOUNT

CARRYING AMOUNT

million

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

Bonds

19,586

42,852

62,438

16,645

39,677

56,322

Commercial paper and notes

10,053

13,787

23,840

9,281

11,953

21,233

Liabilities to banks

11,109

9,692

20,801

11,305

7,659

18,964

Deposits business

24,353

980

25,333

22,310

1,015

23,325

429

743

1,172

396

850

1,247

34

362

396

50

363

413

65,564

68,416

133,980

59,987

61,517

121,504

Loans and miscellaneous

liabilities
Bills of exchange
Finance lease liabilities

The deposits from direct banking business contained in the financial liabilities of 134.0 billion (previous year: 121.5 billion) decreased by 0.1 million (previous year: 5.5 million) as a result of a fair value adjustment from portfolio hedging.

26. Noncurrent and current other financial liabilities

CARRYING AMOUNT

million

Negative fair values of

derivative financial
instruments
Interest payable
Miscellaneous financial
liabilities

CARRYING AMOUNT

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

2,991

2,390

5,381

1,070

1,169

2,239

709

43

752

667

62

730

3,943

1,521

5,464

2,789

1,074

3,863

7,643

3,954

11,597

4,526

2,305

6,832

238

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The negative fair values of derivatives relate to the following items:

million

Dec. 31, 2014

Dec. 31, 2013

Transactions for hedging

foreign currency risk from assets using fair value hedges

24

34

foreign currency risk from liabilities using fair value hedges

286

300

interest rate risk using fair value hedges

115

117

interest rate risk using cash flow hedges

20

30

foreign currency and price risk from future cash flows

(cash flow hedges)
Hedging transactions
Liabilities related to derivatives not included in hedging relationships

4,168

996

4,614

1,476

767

762

5,381

2,239

The negative fair value of transactions for hedging price risk from future cash flows (cash flow hedges) amounted to
69 million (previous year: 61 million).
Positive fair values of 49 million (previous year: 41 million) were recognized from transactions for hedging interest
rate risk (fair value hedges) used in portfolio hedges.
Further details on derivative financial instruments as a whole are given in note 34.

27. Noncurrent and current other liabilities

CARRYING AMOUNT

million

Payments received on account

of orders

CARRYING AMOUNT

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

3,402

146

3,548

3,785

702

4,487

2,044

545

2,590

1,850

465

2,316

466

23

489

444

22

466

4,963

527

5,490

2,735

559

3,294

Liabilities relating to
other taxes
social security
wages and salaries
Miscellaneous liabilities

3,269

2,996

6,265

2,190

2,778

4,968

14,143

4,238

18,382

11,004

4,527

15,530

239

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

28. Tax liabilities

CARRYING AMOUNT

million

Deferred tax liabilities

Provisions for taxes
Tax payables

CARRYING AMOUNT

Current

Noncurrent

Dec. 31, 2014

Current

Noncurrent

Dec. 31, 2013

4,774

4,774

7,894

7,894

2,791

3,215

6,007

2,869

3,674

6,543

256

256

218

218

3,048

7,989

11,037

3,086

11,567

14,654

121 million (previous year: 40 million) of the deferred tax liabilities is due within one year.

29. Provisions for pensions and other post-employment benefits

Provisions for pensions are recognized for commitments in the form of retirement, invalidity and dependents benefits
payable under pension plans. The benefits provided by the Group vary according to the legal, tax and economic
circumstances of the country concerned, and usually depend on the length of service and remuneration of the employees.
Volkswagen Group companies provide occupational pensions under both defined contribution and defined benefit
plans. In the case of defined contribution plans, the Company makes contributions to state or private pension schemes
based on legal or contractual requirements, or on a voluntary basis. Once the contributions have been paid, there are no
further obligations for the Volkswagen Group. Current contributions are recognized as pension expenses of the period
concerned. In 2014, they amounted to a total of 1,815 million (previous year: 1,670 million) in the Volkswagen Group.
Of this figure, contributions to the compulsory state pension system in Germany amounted to 1,410 million (previous
year: 1,292 million).
In the case of defined benefit plans, a distinction is made between pensions funded by provisions and externally
funded plans.
The pension provisions for defined benefits are measured by independent actuaries using the internationally accepted
projected unit credit method in accordance with IAS 19, under which the future obligations are measured on the basis of
the ratable benefit entitlements earned as of the balance sheet date. Measurement reflects actuarial assumptions as to
discount rates, salary and pension trends, employee turnover rates, longevity and increases in healthcare costs, which
were determined for each Group company depending on the economic environment. Remeasurements arise from
differences between what has actually occurred and the prior-year assumptions as well as from changes in assumptions.
They are recognized in other comprehensive income, net of deferred taxes, in the period in which they arise.
Multi-employer pension plans exist in the Volkswagen Group in the United Kingdom, Switzerland, Sweden, the
Netherlands and Japan. These plans are defined benefit plans. A small proportion of them are accounted for as defined
contribution plans, as the Volkswagen Group is not authorized to receive the information required in order to account for
them as defined benefit plans. Under the terms of the multi-employer plans, the Volkswagen Group is not liable for the
obligations of the other employers. In the event of its withdrawal from the plans or their winding-up, the proportionate
share of the surplus of assets attributable to the Volkswagen Group will be credited or the proportionate share of the deficit
attributable to the Volkswagen Group will have to be funded. In the case of the defined benefit plans accounted for as
defined contribution plans, the Volkswagen Groups share of the obligations represents a small proportion of the total
obligations. No probable significant risks arising from multi-employer defined benefit pension plans that are accounted
for as defined contribution plans have been identified.The expected contributions to those plans will amount to 22 million for fiscal year 2015.

240

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Owing to their benefit character, the obligations of the US Group companies in respect of post-employment medical care in
particular are also carried under provisions for pensions and other post-employment benefits. These post-employment
benefit provisions take into account the expected long-term rise in the cost of healthcare. 16 million (previous year:
16 million) was recognized in fiscal year 2014 as an expense for health care costs. The related carrying amount as of
December 31, 2014 was 245 million (previous year: 177 million).
The following amounts were recognized in the balance sheet for defined benefit plans:

million

Present value of funded obligations

Dec. 31, 2014

Dec. 31, 2013

11,983

8,728

Fair value of plan assets

9,224

7,970

Funded status (net)

2,759

758

26,957

20,929

Present value of unfunded obligations

Amount not recognized as an asset because
of the ceiling in IAS 19

15

22

Net liability recognized in the balance sheet

29,731

21,709

29,806

21,774

75

65

of which provisions for pensions

of which other assets

S I G N I F I C A N T P E N S I O N A R R A N G E M E N T S I N T H E V O L K SWA G E N G R O U P

For the period after their active working life, the Volkswagen Group offers its employees benefits under attractive, modern
occupational pension arrangements. Most of the arrangements in the Volkswagen Group are pension plans for employees
in Germany classified as defined benefit plans under IAS 19. The majority of these obligations are funded solely by
recognized provisions. These plans are now largely closed to new members. To reduce the risks associated with defined
benefit plans, in particular longevity, salary increases and inflation, the Volkswagen Group has introduced new defined
benefit plans in recent years whose benefits are funded by appropriate external plan assets. The above-mentioned risks
have been largely reduced in these pension plans. The proportion of the total defined benefit obligation attributable to
pension obligations funded by plan assets will continue to rise in the future. The significant pension plans are described in
the following.
German pension plans funded solely by recognized provisions

The pension plans funded solely by recognized provisions comprise both contribution-based plans with guarantees and
final salary plans. For contribution-based plans, an annual pension expense dependent on income and status is converted
into a lifelong pension entitlement using annuity factors (guaranteed modular pension entitlements). The annuity factors
include a guaranteed rate of interest. At retirement, the modular pension entitlements earned annually are added
together. For final salary plans, the underlying salary is multiplied at retirement by a percentage that depends on the years
of service up until the retirement date.
The present value of the guaranteed obligation rises as interest rates fall and is therefore exposed to interest rate risk.
The pension system provides for lifelong pension payments. The companies bear the longevity risk in this respect. This
is accounted for by calculating the annuity factors and the present value of the guaranteed obligation using the latest
generational mortality tables the Heubeck 2005 G mortality tables which already reflect future increases in life
expectancy.
To reduce the inflation risk from adjusting the regular pension payments by the rate of inflation, a pension adjustment
that is not indexed to inflation was introduced for pension plans where this is permitted by law.

241

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

German pension plans funded by external plan assets

The pension plans funded by external plan assets are contribution-based plans with guarantees. In this case, an annual
pension expense dependent on income and status is either converted into a lifelong pension entitlement using annuity
factors (guaranteed modular pension entitlement) or paid out in a single lump sum or in installments. In some cases,
employees also have the opportunity to provide for their own retirement through deferred compensation. The annuity
factors include a guaranteed rate of interest. At retirement, the modular pension entitlements earned annually are added
together. The pension expense is contributed on an ongoing basis to a separate pool of assets that is administered
independently of the Company in trust and invested in the capital markets. If the plan assets exceed the present value of the
obligations calculated using the guaranteed rate of interest, surpluses are allocated (modular pension bonuses).
Since the assets administered in trust meet the IAS 19 criteria for classification as plan assets, they are deducted from
the obligations.
The amount of the pension assets is exposed to general market risk. The investment strategy and its implementation
are therefore continuously monitored by the trusts governing bodies, on which the companies are also represented. For
example, investment policies are stipulated in investment guidelines with the aim of limiting market risk and its impact on
plan assets. In addition, asset-liability management studies are conducted if required so as to ensure that investments are
in line with the obligations that need to be covered. The pension assets are currently invested primarily in fixed-income or
equity funds. The main risks are therefore interest rate and equity price risk. To mitigate market risk, the pension system
also provides for cash funds to be set aside in an equalization reserve before any surplus is allocated.
The present value of the obligation is the present value of the guaranteed obligation after deducting the plan assets. If
the plan assets fall below the present value of the guaranteed obligation, a provision must be recognized in that amount.
The present value of the guaranteed obligation rises as interest rates fall and is therefore exposed to interest rate risk.
In the case of lifelong pension payments, the Volkswagen Group bears the longevity risk. This is accounted for by
calculating the annuity factors and the present value of the guaranteed obligation using the latest generational mortality
tables the Heubeck 2005 G mortality tables which already reflect future increases in life expectancy. In addition, the
independent actuaries carry out annual risk monitoring as part of the review of the assets administered by the trusts.
To reduce the inflation risk from adjusting the regular pension payments by the rate of inflation, a pension adjustment
that is not indexed to inflation was introduced for pension plans where this is permitted by law.
Calculation of the pension provisions was based on the following actuarial assumptions:

GERMANY

ABROAD

2014

2013

2014

2013

Discount rate at December 31

2.30

3.70

4.35

5.51

Payroll trend

3.33

3.36

3.43

3.24

Pension trend

1.80

1.80

2.60

3.02

Employee turnover rate

0.99

1.03

3.38

3.76

4.67

5.51

Annual increase in healthcare costs

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Notes to the Consolidated Financial Statements

These assumptions are averages that were weighted using the present value of the defined benefit obligation.
With regard to life expectancy, consideration is given to the latest mortality tables in each country.
The discount rates are generally defined to reflect the yields on prime-rated corporate bonds with matching maturities
and currencies. The iBoxx AA 10+ Corporates index was taken as the basis for the obligations of German Group companies.
Similar indices were used for foreign pension obligations.
The payroll trends cover expected wage and salary trends, which also include increases attributable to career
development.
The pension trends either reflect the contractually guaranteed pension adjustments or are based on the rules on
pension adjustments in force in each country.
The employee turnover rates are based on past experience and future expectations.
The following table shows changes in the net defined benefit liability recognized in the balance sheet:

million

Net liability recognized in the balance sheet at January 1

2014

2013

21,709

23,903

Current service cost

728

759

Net interest expense

786

752

Actuarial gains ()/losses (+) arising from changes in demographic assumptions

21

8,145

2,323

Actuarial gains ()/losses (+) arising from experience adjustments

114

16

Income/expenses from plan assets not included in interest income

324

49

17

Employer contributions to plan assets

616

572

Employee contributions to plan assets

783

766

Actuarial gains ()/losses (+) arising from changes in financial assumptions

Change in amount not recognized as an asset because of the ceiling in IAS 19

Pension payments from company assets

Past service cost (including plan curtailments)

25

Gains () or losses (+) arising from plan settlements

Changes in consolidated Group

12

47

Other changes
Foreign exchange differences from foreign plans
Net liability recognized in the balance sheet at December 31

43

72

29,731

21,709

The change in the amount not recognized as an asset because of the ceiling in IAS 19 contains an interest component, part
of which was recognized in the financial result in profit or loss, and part of which was recognized outside profit or loss
directly in equity.

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Notes to the Consolidated Financial Statements

The change in the present value of the defined benefit obligation is attributable to the following factors:

million

Present value of obligations at January 1

Current service cost

2014

2013

29,657

31,185

728

759

1,153

1,041

Actuarial gains()/losses (+) arising from changes

in demographic assumptions

21

Actuarial gains()/losses (+) arising from changes

in financial assumptions

8,145

2,323

114

16

Interest cost

Actuarial gains()/losses (+) arising from

experience adjustments
Employee contributions to plan assets

38

41

Pension payments from company assets

783

766

Pension payments from plan assets

235

222

25

24

Past service cost (including plan curtailments)

Gains () or losses (+) arising from plan settlements
Changes in consolidated Group
Other changes
Foreign exchange differences from foreign plans
Present value of obligations at December 31

21

197

139

266

38,939

29,657

Changes in the relevant actuarial assumptions would have had the following effects on the defined benefit obligation:

DEC. 31, 2014

Present value of defined benefit obligation if

Discount rate

Pension trend

Payroll trend

Longevity

DEC. 31, 2013

million

Change in percent

million

Change in percent

is 0.5
percentage
points higher

35,573

8.64

27,656

6.75

is 0.5
percentage
points lower

42,830

9.99

32,263

8.79

is 0.5
percentage
points higher

41,024

5.35

31,113

4.91

is 0.5
percentage
points lower

37,046

4.86

28,360

4.37

is 0.5
percentage
points higher

39,487

1.41

30,047

1.31

is 0.5
percentage
points lower

38,466

1.22

29,324

1.12

increases by
one year

40,066

2.89

30,413

2.55

244

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The sensitivity analysis shown above considers the change in one assumption at a time, leaving the other assumptions
unchanged versus the original calculation, i.e. any correlation effects between the individual assumptions are ignored.
To examine the sensitivity of the defined benefit obligation to a change in assumed longevity, the estimates of mortality
were reduced as part of a comparative calculation to the extent that doing so increases life expectancy by approximately one
year.
The average duration of the defined benefit obligation weighted by the present value of the defined benefit obligation
(Macaulay duration) is 19 years (previous year: 17 years).
The present value of the defined benefit obligation is attributable as follows to the members of the plan:

million

Active members with pension entitlements

Members with vested entitlements who have left the Company
Pensioners

2014

2013

22,490

15,772

1,781

1,418

14,669

12,468

The maturity profile of payments attributable to the defined benefit obligation is presented in the following table, which
classifies the present value of the obligation by the maturity of the underlying payments:

million

2014

2013

Payments due within the next fiscal year

1,031

977

Payments due between two and five years

4,212

3,856

33,696

24,824

2014

2013

Payments due in more than five years

Changes in plan assets are shown in the following table:

million

Fair value of plan assets at January 1

7,970

7,288

Interest income on plan assets determined using the discount rate

366

290

Income/expenses from plan assets not included in interest income

324

49

Employer contributions to plan assets

616

572

Employee contributions to plan assets

Pension payments from plan assets
Gains (+) or losses () arising from plan settlements
Changes in consolidated Group
Other changes
Foreign exchange differences from foreign plans
Fair value of plan assets at December 31

245

33

41

235

222

23

150

182

196

9,224

7,970

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The investment of the plan assets to cover future pension obligations resulted in income in the amount of 690 million
(previous year: 338 million).
Employer contributions to plan assets are expected to amount to 546 million in the next fiscal year (previous year:
501 million).
Plan assets are invested in the following asset classes:

DEC. 31, 2014

Quoted prices
in active
markets

No
quoted prices
in active
markets

Cash and cash equivalents

304

Equity instruments

292

million

Debt instruments

DEC. 31, 2013

Total

Quoted prices
in active
markets

No
quoted prices
in active
markets

Total

304

338

338

292

271

271

1,601

1,601

1,304

1,305
84

Direct investments in real

estate

87

89

82

17

17

Equity funds

2,110

62

2,172

1,812

70

1,883

Bond funds

Derivatives

3,437

96

3,533

2,955

86

3,041

Real estate funds

234

234

197

197

Other funds

460

464

317

319

18

519

537

46

469

516

Other instruments

38.1% (previous year: 37.7%) of the plan assets are invested in German assets, 30.2% (previous year: 29.6%) in other
European assets and 31.7% (previous year: 32.7%) in assets in other regions.
Plan assets include 26 million (previous year: 22 million) invested in Volkswagen Group assets and 18 million
(previous year: 19 million) in Volkswagen Group debt instruments.
The following amounts were recognized in the income statement:

million

2014

2013

Current service cost

728

759

Net interest on the net defined benefit liability

788

752

Past service cost (including plan curtailments)

25

Gains () or losses (+) arising from plan settlements

Net income () and expenses (+) recognized in profit or loss

1,541

1,516

The above amounts are generally included in the personnel costs of the functions in the income statement. Net interest on
the net defined benefit liability is reported in finance costs.

246

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

30. Noncurrent and current other provisions

Obligations
arising from
sales

Employee
expenses

Miscellaneous
provisions

Total

17,124

5,243

8,429

30,796

417

63

287

766

14

28

Utilized

7,146

2,864

1,896

11,906

Additions/New provisions

16,489

million

Balance at Jan. 1, 2013

Foreign exchange differences
Changes in consolidated Group

9,930

3,227

3,332

Unwinding of discount/effect of change in discount rate

33

78

48

Reversals

934

247

1,167

2,348

Balance at Dec. 31, 2013

18,537

5,380

8,423

32,341

of which current

9,655

3,377

5,327

18,360

of which noncurrent

8,882

2,003

3,096

13,981

Balance at Jan. 1, 2014

18,537

5,380

8,423

32,341

214

29

59

303

Utilized

7,045

3,030

2,299

12,373

Additions/New provisions

9,715

1,678

3,148

14,541

77

229

14

319

962

198

991

2,151

Foreign exchange differences

Changes in consolidated Group

Unwinding of discount/effect of change in discount rate

Reversals
Balance at Dec. 31, 2014

20,539

4,091

8,356

32,986

of which current

10,090

1,753

5,232

17,075

of which noncurrent

10,448

2,338

3,124

15,910

The obligations arising from sales contain provisions covering all risks relating to the sale of vehicles, components and
genuine parts through to the disposal of end-of-life vehicles. They primarily comprise warranty obligations, calculated on
the basis of losses to date and estimated future losses. They also include provisions for discounts, bonuses and similar
allowances which are incurred after the balance sheet date, but for which there is a legal or constructive obligation
attributable to sales revenue before the balance sheet date.
Provisions for employee expenses are recognized for long-service awards, time credits, partial retirement
arrangements, severance payments and similar obligations, among other things. The reduction in provisions for employee
expenses is due mainly to the change to bonus entitlements in the Group. As a result of the change, the entitlements are
now reported as other liabilities.
Miscellaneous provisions relate to a wide range of identifiable specific risks, price risks and uncertain obligations,
which are measured in the amount of the expected settlement value.
Miscellaneous provisions include provisions amounting to 417 million relating to the insurance business (previous
year: 370 million).

247

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

31. Put options and compensation rights granted to noncontrolling interest shareholders
This balance sheet item consists almost exclusively of the present value of the cash settlement in accordance with section
305 of the Aktiengesetz (AktG German Stock Corporation Act) offered to MAN shareholders in connection with the
control and profit and loss transfer agreement, including the basic interest rate in accordance with section 247 of the
Brgerliches Gesetzbuch (BGB German Civil Code) assumed until the end of the award proceedings (see also the
description of the transaction in the disclosures on the basis of consolidation).

32. Trade payables

million

Dec. 31, 2014

Dec. 31, 2013

19,250

17,753

122

100

joint ventures

66

117

associates

87

47

Trade payables to
third parties
affiliated companies

other investees and investors

19,530

18,024

ADDITIONAL BALANC E SH EET D ISC LOSU R ES I N ACCOR DANC E WITH I FRS 7

(FI NANC IA L I NSTRUMENTS)

C A R R Y I N G A M O U N T O F F I N A N C I A L I N ST R U M E N T S B Y I A S 3 9 M E A S U R E M E N T C AT E G O R Y

million

Dec. 31, 2014

Financial assets at fair value through profit or loss

Loans and receivables
Available-for-sale financial assets
Financial liabilities at fair value through profit or loss
Financial liabilities measured at amortized cost

Dec. 31, 2013

820

373

119,130

111,010

14,544

12,435

767

762

163,032

147,346

R E C O N C I L I AT I O N O F B A L A N C E S H E E T I T E M S T O C L A S S E S O F F I N A N C I A L I N ST R U M E N T S

The following table shows the reconciliation of the balance sheet items to the relevant classes of financial instruments,
broken down by the carrying amount and fair value of the financial instruments.
The fair value of financial instruments measured at amortized cost, such as receivables and liabilities, is calculated by
discounting using a market rate of interest for a similar risk and matching maturity. For reasons of materiality, the fair
value of current balance sheet items is generally deemed to be their carrying amount. In the reconciliation presented in the
following tables, equity instruments recognized at their carrying amount have been allocated to Level 3 of the fair value
hierarchy as of fiscal year 2014.

248

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N O F B A L A N C E S H E E T I T E M S T O C L A S S E S O F F I N A N C I A L I N ST R U M E N T S A S O F D E C E M B E R 3 1 , 2 0 1 3

MEASURED

million

NOT WITHIN

BALANCE SHEET

AT FAIR

MEASURED AT

SCOPE OF

ITEM AT DEC. 31,

VALUE

AMORTIZED COST

IFRS 7

2013

Carrying
amount

Carrying
amount

Fair value

Carrying
amount

Noncurrent assets
Equity-accounted investments

7,934

2,666

1,274

1,274

3,941

51,198

53,200

51,198

2,414

4,626

4,593

7,040

Trade receivables

11,133

11,133

11,133

Financial services receivables

38,386

38,386

38,386

Other financial assets

1,680

4,911

4,911

6,591

Marketable securities

8,492

8,492

23,178

23,178

23,178

61,517

62,810

61,517

1,169

1,136

1,153

2,305

Other equity investments

Financial services receivables
Other financial assets

7,934

Current assets

Cash, cash equivalents and time

deposits
Noncurrent liabilities
Noncurrent financial liabilities
Other noncurrent
financial liabilities
Current liabilities
Put options and compensation
rights granted to noncontrolling
interest shareholders

3,638

3,563

3,638

Current financial liabilities

59,987

59,987

59,987

Trade payables

18,024

18,024

18,024

1,070

3,456

3,456

4,526

Other current
financial liabilities

249

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

R E C O N C I L I AT I O N O F B A L A N C E S H E E T I T E M S T O C L A S S E S O F F I N A N C I A L I N ST R U M E N T S A S O F D E C E M B E R 3 1 , 2 0 1 4

MEASURED

million

NOT WITHIN

BALANCE SHEET

AT FAIR

MEASURED AT

SCOPE OF

ITEM AT DEC. 31,

VALUE

AMORTIZED COST

IFRS 7

2014

Carrying
amount

Carrying
amount

Fair value

Carrying
amount

Noncurrent assets
Equity-accounted investments

9,874

2,922

761

761

3,683

57,877

60,052

57,877

2,047

4,451

4,496

6,498

Trade receivables

11,472

11,472

11,472

Financial services receivables

44,398

44,398

44,398

Other financial assets

1,551

6,141

6,141

7,693

Marketable securities

10,861

10,861

19,123

19,123

19,123

68,416

70,238

68,416

2,390

1,564

1,568

3,954

Other equity investments

Financial services receivables
Other financial assets

9,874

Current assets

Cash, cash equivalents and time

deposits
Noncurrent liabilities
Noncurrent financial liabilities
Other noncurrent
financial liabilities
Current liabilities
Put options and compensation
rights granted to noncontrolling
interest shareholders

3,703

3,822

3,703

Current financial liabilities

65,564

65,564

65,564

Trade payables

19,530

19,530

19,530

2,991

4,652

4,652

7,643

Other current
financial liabilities

Uniform valuation techniques and inputs are used to measure fair value. The fair value of Level 2 and 3 financial instruments is measured in the individual divisions on the basis of Group-wide specifications. The measurement techniques
used are explained in the disclosures on accounting policies. The fair value of put options and compensation rights
granted to noncontrolling interest shareholders is calculated using a present value model based on the contractually
agreed cash settlement, including cash compensation, as well as the minimum statutory interest rate and a risk-adjusted
discount rate for a matching maturity. For further information, please see the disclosures on the basis of consolidation.
The fair value of Level 3 receivables was measured by reference to individual expectations of losses; these are based to a
significant extent on the Companys assumptions about counterparty credit quality. Financial services receivables are
allocated to Level 3 because their fair value was measured using inputs that are not observable in active markets.

250

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The following table contains an overview of the financial assets and liabilities measured at fair value by level:
F I N A N C I A L A S S E T S A N D L I A B I L I T I E S M E A S U R E D AT FA I R VA L U E B Y L E V E L

million

Dec. 31, 2013

Level 1

Level 2

Level 3

Other equity investments

2,666

2,666

Other financial assets

2,414

2,400

14

Noncurrent assets

Current assets
Other financial assets

1,680

1,662

18

Marketable securities

8,492

8,410

83

1,169

1,033

136

1,070

988

82

Dec. 31, 2014

Level 1

Level 2

Level 3

Other equity investments

2,922

2,922

Other financial assets

2,047

2,023

24

Noncurrent liabilities
Other noncurrent financial liabilities
Current liabilities
Other current financial liabilities

million

Noncurrent assets

Current assets
Other financial assets

1,551

1,543

Marketable securities

10,861

10,861

2,390

2,216

174

2,991

2,916

75

Noncurrent liabilities
Other noncurrent financial liabilities
Current liabilities
Other current financial liabilities

251

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

FA I R VA L U E O F F I N A N C I A L A S S E T S A N D L I A B I L I T I E S M E A S U R E D AT A M O R T I Z E D C O ST B Y L E V E L

million

Dec. 31, 2013*

Level 1

Level 2

Level 3

Fair value of financial assets measured at amortized cost

Other equity investments

1,274

186

1,088

Financial services receivables

91,586

91,586

Trade receivables

11,133

10,999

134

9,504

166

4,960

4,378

Other financial assets

Cash, cash equivalents and time deposits
Fair value of financial assets measured at amortized cost

23,178

22,013

1,165

136,675

22,179

17,310

97,186

3,563

Fair value of financial liabilities measured at amortized cost

Put options and compensation rights granted to
noncontrolling interest shareholders
Trade payables
Financial liabilities
Other financial liabilities
Fair value of financial liabilities measured at amortized cost

3,563

18,024

18,024

122,797

20,905

101,728

165

4,609

63

4,507

40

148,993

20,967

124,258

3,768

Dec. 31, 2014

Level 1

Level 2

Level 3

761

761

104,450

104,450

* Prior-year figures adjusted.

million

Fair value of financial assets measured at amortized cost

Other equity investments
Financial services receivables
Trade receivables

11,472

11,290

182

Other financial assets

10,637

669

5,326

4,642

Cash, cash equivalents and time deposits

Fair value of financial assets measured at amortized cost

19,123

18,653

471

146,443

19,321

17,086

110,036

3,822

Fair value of financial liabilities measured at amortized cost

Put options and compensation rights granted to
noncontrolling interest shareholders
Trade payables
Financial liabilities
Other financial liabilities
Fair value of financial liabilities measured at amortized cost

252

3,822

19,530

19,530

135,802

22,334

113,406

62

6,220

270

5,882

69

165,374

22,604

138,817

3,954

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

The allocation of fair values to the three levels in the fair value hierarchy is based on the availability of observable market
prices. Level 1 is used to report the fair value of financial instruments for which a price is available in an active market.
Examples include marketable securities and other equity investments measured at fair value. Fair values in Level 2, for
example of derivatives, are measured on the basis of observable market inputs using market-based valuation techniques.
In particular, the inputs used include exchange rates, yield curves and commodity prices that are observable in the
relevant markets and obtained through pricing services. Level 3 fair values are calculated using valuation techniques that
incorporate inputs that are not observable in active markets. In the Volkswagen Group, Level 3 fair values comprise longterm commodity futures because the prices available on the market must be extrapolated for measurement purposes. This
is done on the basis of observable inputs obtained for the different commodities through pricing services. Options on
equity instruments and residual value protection models are also reported in Level 3. Equity instruments are measured
primarily using the relevant business plans and entity-specific discount rates. The significant inputs used to measure fair
value for the residual value protection models include forecasts and estimates of used vehicle residual values for the
appropriate models.

C H A N G E S I N B A L A N C E S H E E T I T E M S M E A S U R E D AT FA I R VA L U E B A S E D O N L E V E L 3

million

Balance at Jan. 1, 2013

Financial assets
measured at fair value

Financial liabilities
measured at fair value

119

60

Foreign exchange differences

Total comprehensive income

70

197

recognized in profit or loss

63

182

16

recognized in other comprehensive income

Additions (purchases)

Sales and settlements

20

Transfers into Level 2

11

22

32

218

63

182

Balance at Dec. 31, 2013

Total gains or losses recognized in profit or loss
Net other operating expense/income
of which attributable to assets/liabilities held at
the reporting date
Financial result
of which attributable to assets/liabilities held at
the reporting date

253

63

182

65

184

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

million

Balance at Jan. 1, 2014

Financial assets
measured at fair value

Financial liabilities
measured at fair value

32

218

Foreign exchange differences

15

Total comprehensive income

17

91

87

10

recognized in profit or loss

recognized in other comprehensive income
Additions (purchases)

Sales and settlements

11

47

Transfers into Level 2

21

13

32

249

87

Balance at Dec. 31, 2014

Total gains or losses recognized in profit or loss
Net other operating expense/income
of which attributable to assets/liabilities held at
the reporting date
Financial result
of which attributable to assets/liabilities held at
the reporting date

87

17

78

The transfers between the levels of the fair value hierarchy are reported at the respective reporting dates. The transfers out
of Level 3 into Level 2 comprise commodity futures for which observable quoted prices are now available for measurement
purposes due to the decline in their remaining maturities; consequently, no extrapolation is required. There were no
transfers between other levels of the fair value hierarchy.
Commodity prices are the key risk variable for the fair value of commodity futures. Sensitivity analyses are used to
present the effect of changes in commodity prices on profit after tax and equity.
If commodity prices for commodity futures classified as Level 3 had been 10% higher (lower) as of December 31,
2014, profit would have been 20 million (previous year: 6 million) higher (lower) and equity would have been 4 million
(previous year: 9 million) higher (lower).
The key risk variable for measuring options on equity instruments held by the Company is the relevant enterprise
value. Sensitivity analyses are used to present the effect of changes in risk variables on profit.
If the assumed enterprise values had been 10% higher, profit would have been 1 million (previous year: 12 million)
higher. If the assumed enterprise values had been 10% lower, profit would have been 2 million (previous year: 21 million) lower.
Residual value risks result from hedging agreements with dealers under which earnings effects caused by marketrelated fluctuations in residual values that arise from buy-back obligations under leases are borne in part by the
Volkswagen Group.
The key risk variable influencing the fair value of the options relating to residual value risks is used car prices.
Sensitivity analyses are used to quantify the effects of changes in used car prices on earnings after tax.
If the prices for the used cars covered by the residual value protection model had been 10% higher as of December 31,
2014, profit after tax would have been 194 million higher. If the prices for the used cars covered by the residual value
protection model had been 10% lower as of December 31, 2014, profit after tax would have been 194 million lower.

254

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

OFFSETTI NG OF FINANCIAL ASSETS AND LIABI LITI ES

The following tables contain information about the effects of offsetting in the balance sheet and the potential financial
effects of offsetting in the case of instruments that are subject to a legally enforceable master netting arrangement or a
similar agreement.

AMOUNTS THAT ARE NOT SET

OFF IN THE BALANCE SHEET

million

Derivatives

Gross amounts of
recognized
financial assets

Gross amounts of
recognized
financial liabilities
set off in the
balance sheet

Net amounts of
financial assets
presented in the
balance sheet

Financial
instruments

Collateral received

Net amount at
Dec. 31, 2013

2,992

4,094

4,094

1,101

Financial services
receivables

89,870

286

89,584

31

89,554

Trade receivables

11,269

135

11,133

348

10,786

8,492

8,492

8,492

Marketable securities
Cash, cash equivalents and
time deposits

23,178

23,178

23,178

Other financial assets

13,520

42

13,478

13,478

AMOUNTS THAT ARE NOT SET

OFF IN THE BALANCE SHEET

million

Derivatives

Gross amounts of
recognized
financial assets

Gross amounts of
recognized
financial liabilities
set off in the
balance sheet

Net amounts of
financial assets
presented in the
balance sheet

Financial
instruments

Collateral received

Net amount at
Dec. 31, 2014

87

1,572

3,598

3,598

1,938

Financial services
receivables

102,574

299

102,275

31

102,244

Trade receivables

11,576

104

11,472

305

11,166

Marketable securities

10,861

10,861

10,861

Cash, cash equivalents and

time deposits

19,123

19,123

19,123

Other financial assets

14,282

14,276

14,276

255

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

AMOUNTS THAT ARE NOT SET

OFF IN THE BALANCE SHEET

Gross amounts of
recognized
financial liabilities

Gross amounts of
recognized
financial assets set
off in the balance
sheet

Net amounts of
financial liabilities
presented in the
balance sheet

Put options and

compensation rights
granted to noncontrolling
interest shareholders

3,638

Derivatives

2,236

121,504

million

Financial liabilities
Trade payables
Other financial liabilities

Financial
instruments

Collateral pledged

Net amount at
Dec. 31, 2013

3,638

3,638

2,236

1,072

1,165

121,504

2,060

119,444

18,162

138

18,024

18,024

4,921

326

4,595

4,595

Collateral pledged

Net amount at
Dec. 31, 2014

3,703

AMOUNTS THAT ARE NOT SET

OFF IN THE BALANCE SHEET

Gross amounts of
recognized
financial liabilities

Gross amounts of
recognized
financial assets set
off in the balance
sheet

Net amounts of
financial liabilities
presented in the
balance sheet

Put options and

compensation rights
granted to noncontrolling
interest shareholders

3,703

3,703

Derivatives

5,381

5,381

1,907

51

3,422

133,980

133,980

2,081

131,898

19,634

104

19,530

19,529

6,522

306

6,216

6,216

million

Financial liabilities
Trade payables
Other financial liabilities

Financial
instruments

The Financial instruments column shows the amounts that are subject to a master netting arrangement but were not set
off because they do not meet the criteria for offsetting in the balance sheet. The Collateral received and Collateral
pledged columns show the amounts of cash collateral and collateral in the form of financial instruments received and
pledged for the total assets and liabilities that do not meet the criteria for offsetting in the balance sheet.

256

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C H A N G E S I N C R E D I T R I S K VA L U AT I O N A L L O WA N C E S O N F I N A N C I A L A S S E T S

million

Balance at Jan. 1
Exchange rate and other
changes
Changes in consolidated
Group

Specific
valuation
allowances

Portfolio-based
valuation
allowances

2014

Specific
valuation
allowances

Portfolio-based
valuation
allowances

2013

2,237

1,433

3,670

2,072

1,253

3,325

20

12

75

37

113

23

24

48

Additions

703

371

1,074

887

393

1,280

Utilization

396

396

383

383

Reversals

300

175

475

308

133

441

43

43

2,269

1,665

3,933

2,237

1,433

3,670

Reclassification
Balance at Dec. 31

The valuation allowances mainly relate to the credit risks associated with the financial services business.
FA C T O R I N G A N D A S S E T- B A C K E D S E C U R I T I E S T R A N S A C T I O N S

The trade receivables include transferred receivables in the total amount of 4 million (previous year: 17 million) that
were not derecognized in their entirety because the credit risk remains with the Volkswagen Group. The total purchase
price received of 1 million (previous year: 8 million) is reported in financial liabilities. The fair values of the receivables
and liabilities are not materially different to their carrying amounts.
Asset-backed securities transactions amounting to 19,301million (previous year: 15,575 million) entered into to
refinance the financial services business are included in bonds, commercial paper and notes, and liabilities from loans.
The corresponding carrying amount of the receivables from the customer and dealer financing and the finance lease
business amounted to 21,485 million (previous year: 18,897 million). Collateral furnished in asset-backed securities
transactions amounted to 28,192 million in total (previous year: 24,820 million). These asset-backed securities
transactions did not result in the receivables from financial services business being derecognized, as the Group retains
nonpayment and late payment risks. The difference between the assigned receivables and the related liabilities is the
result of different terms and conditions and the share of the securitized paper and notes held by the Volkswagen Group
itself.
Most of the public and private asset-backed securities transactions of the Volkswagen Financial Services AG Group can
be repaid in advance (clean-up call) if less than 9% or 10%, as appropriate, of the original transaction volume is
outstanding. The asset-backed securities transactions of Volkswagen Financial Services (UK) will have been largely repaid
by the time all of the liabilities have been redeemed. The assigned receivables cannot be assigned again or pledged
elsewhere as collateral. The claims of the holders of commercial paper and notes are limited to the assigned receivables
and the receipts from those receivables are earmarked for the repayment of the corresponding liability.
As of December 31, 2014, the fair value of the assigned receivables still recognized in the balance sheet was 22,102
million (previous year: 19,664 million). The fair value of the related liabilities was 19,480 million at that reporting date
(previous year: 15,879 million).

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Notes to the Consolidated Financial Statements

OTH ER DISC LOSU RE S

33. Cash flow statement

Cash flows are presented in the cash flow statement classified into cash flows from operating activities, investing activities
and financing activities, irrespective of the balance sheet classification.
Cash flows from operating activities are derived indirectly from profit before tax. Profit before tax is adjusted to
eliminate noncash expenditures (mainly depreciation, amortization and impairment losses) and income. This results in
cash flows from operating activities after accounting for changes in working capital, which also include changes in lease
assets and in financial services receivables.
Investing activities include additions to property, plant and equipment and equity investments, additions to capitalized
development costs and investments in securities and loans.
Financing activities include outflows of funds from dividend payments and redemption of bonds, inflows from the
capital increase and issuance of bonds, and changes in other financial liabilities. Please refer to note 24 for information on
the inflows from the issuance of new preferred shares in the amount of 1,980 million (previous year: issuance of a mandatory convertible note in the amount of 1,099 million) and the issuance of hybrid capital in the amount of 2,952 million
(previous year: 1,967 million) contained in the capital contributions.
The changes in balance sheet items that are presented in the cash flow statement cannot be derived directly from the
balance sheet, as the effects of currency translation and changes in the consolidated Group are noncash transactions and
are therefore eliminated.
In 2014, cash flows from operating activities include interest received amounting to 6,129 million (previous year:
5,754 million) and interest paid amounting to 3,397 million (previous year: 3,864 million). In addition, the share of
profits and losses of equity-accounted investments (note 7) includes dividends amounting to 2,997 million (previous year:
2,827 million).
Dividends amounting to 1,871 million (previous year: 1,639 million) were paid to Volkswagen AG shareholders.

million

Dec. 31, 2014

Cash, cash equivalents and time deposits

as reported in the balance sheet
Time deposits
Cash and cash equivalents as reported in the cash flow statement

Dec. 31, 2013

19,123

23,178

489

1,169

18,634

22,009

Time deposits are not classified as cash equivalents. Time deposits have a contractual maturity of more than three months.
The maximum default risk corresponds to its carrying amount.

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Notes to the Consolidated Financial Statements

34. Financial risk management and financial instruments

1. H EDGI NG GU I DELI N ES AND FI NANCIAL RISK MANAGEMENT PRI NCI PLES

The principles and responsibilities for managing and controlling the risks that could arise from financial instruments are
defined by the Board of Management and monitored by the Supervisory Board. General rules apply to the Group-wide risk
policy; these are oriented on the statutory requirements and the Minimum Requirements for Risk Management by Credit
Institutions.
Group Treasury is responsible for operational risk management and control of risks from the financial instruments it
itself administers. Following the almost complete acquisition of the Scania AB shares, exploratory talks have begun with a
view to also coordinating the Scania subgroup centrally. The integration process has not yet been completed for the MAN
subgroup. However, these subgroups have their own, well-established risk management structures. The Executive
Committee for Liquidity and Foreign Currency is regularly informed about current financial risks. In addition, the Group
Board of Management and the Supervisory Board are regularly updated on the current risk situation.
For more information, please see the management report on page 172.
2 . C R E D I T A N D D E FA U LT R I S K

The credit and default risk arising from financial assets involves the risk of default by counterparties, and therefore
comprises at a maximum the amount of the claims under carrying amounts receivable from them and the irrevocable
credit commitments. The maximum potential credit and default risk is reduced by collateral held and other credit
enhancements in the amount of 66,555 million (previous year: 68,763 million). The collateral held relates solely to
financial assets carried at amortized cost and mainly serves to secure financial services receivables and trade receivables.
Collateral comprises vehicles and assets transferred as security, as well as guarantees and real property liens. Cash
collateral is also used in hedging transactions. The risk arising from nonderivative financial instruments is also accounted
for by recognizing bad debt losses. Significant cash and capital investments, as well as derivatives, are only entered into
with national and international banks of good credit standing. Risk is additionally limited by a limit system based primarily
on credit assessments by international rating agencies and on the equity base of the counterparties concerned. Financial
guarantees issued also give rise to credit and default risk. The maximum potential credit and default risk is calculated from
the amount Volkswagen would have to pay if claims were to be asserted under the guarantees. The corresponding amounts
are presented in the Liquidity risk section.
There were no material concentrations of risk at individual counterparties or counterparty groups in the past fiscal
year due to the global allocation of the Groups business activities and the resulting diversification. There was hardly any
change in the concentration of credit and default risk exposures to the German public banking sector as a whole that has
arisen from Group-wide cash and capital investments as well as derivatives: the portion attributable to this sector was
14.6% at the end of 2014 compared with 12.9% at the end of 2013. Any existing concentration of risk is assessed and
monitored both at the level of individual counterparties or counterparty groups and with regard to the countries in which
these are based, in each case using the share of all credit and default risk exposures accounted for by the risk exposure
concerned.

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C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

C R E D I T A N D D E FA U LT R I S K R E L AT I N G TO F I N A N C I A L A S S E T S B Y G R O S S C A R RY I N G A M O U N T

Neither
past due
nor
impaired

Past due
and not
impaired

Impaired

Financial services
receivables

99,795

2,548

Trade receivables

8,682

2,664

Other receivables

10,800
119,278

million

Dec. 31, 2014

Neither
past due
nor
impaired

Past due
and not
impaired

Impaired

Dec. 31, 2013

3,036

105,379

86,588

2,694

3,121

92,403

532

11,879

8,219

2,814

514

11,547

53

183

11,035

9,442

84

446

9,972

5,265

3,751

128,293

104,249

5,592

4,081

113,922

Measured at
amortized cost

There are no past due financial instruments measured at fair value in the Volkswagen Group. In fiscal year 2014,
marketable securities measured at fair value with a cost of 97 million (previous year: 85 million) were individually
impaired.
C R E D I T R AT I N G O F T H E G R O S S C A R RY I N G A M O U N T S O F F I N A N C I A L A S S E T S T H AT A R E N E I T H E R PA ST D U E N O R I M PA I R E D

million

Risk class 1

Risk class 2

Dec. 31, 2014

Risk class 1

Risk class 2

Dec. 31, 2013

Financial services
receivables

86,099

13,696

99,795

71,592

14,996

86,588

Trade receivables

8,546

137

8,682

8,218

8,219

Other receivables

10,765

35

10,800

9,402

40

9,442

Measured at fair value

13,593

13,593

12,009

12,009

119,003

13,868

132,871

101,221

15,037

116,258

Measured at
amortized cost

The Volkswagen Group performs a credit assessment of borrowers in all loan and lease agreements, using scoring systems
for the high-volume business and rating systems for corporate customers and receivables from dealer financing.
Receivables rated as good are contained in risk class 1. Receivables from customers whose credit rating is not good but
have not yet defaulted are contained in risk class 2.

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Notes to the Consolidated Financial Statements

M AT U R I T Y A N A LY S I S O F T H E G R O S S C A R RY I N G A M O U N T S O F F I N A N C I A L A S S E T S T H AT A R E PA ST D U E A N D N O T I M PA I R E D

GROSS CARRYING
PAST DUE BY

million

AMOUNT
more than
90 days

Dec. 31, 2013

up to 30 days

30 to 90 days

Financial services receivables

2,011

664

19

2,694

Trade receivables

1,356

654

804

2,814

Other receivables

34

21

30

84

Measured at fair value

3,401

1,339

852

5,592

Measured at amortized cost

GROSS CARRYING
PAST DUE BY

million

AMOUNT
more than
90 days

Dec. 31, 2014

549

23

2,548

790

637

2,664

22

24

53

3,236

1,346

683

5,265

up to 30 days

30 to 90 days

Financial services receivables

1,977

Trade receivables

1,237

Other receivables
Measured at fair value

Measured at amortized cost

Collateral that was accepted for financial assets in the current fiscal year was recognized in the balance sheet in the
amount of 94 million (previous year: 103 million). This mainly relates to vehicles.
3. LIQUIDITY RISK

The solvency and liquidity of the Volkswagen Group are ensured at all times by rolling liquidity planning, a liquidity reserve
in the form of cash, confirmed credit lines and globally available debt issuance programs.
Local cash funds in certain countries (e.g. Brazil, Argentina, Ukraine, Malaysia, India and Taiwan) are only available to
the Group for cross-border transactions subject to exchange controls. There are no significant restrictions over and above
these.
The following overview shows the contractual undiscounted cash flows from financial instruments.

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Notes to the Consolidated Financial Statements

M AT U R I T Y A N A LY S I S O F U N D I S C O U N T E D C A S H F L O W S F R O M F I N A N C I A L I N ST R U M E N T S

million

Put options and

compensation
rights granted to
noncontrolling
interest
shareholders*

REMAINING

REMAINING

CONTRACTUAL MATURITIES

CONTRACTUAL MATURITIES

under
one year

within one
to five years

over five
years

2014

under
one year

within one
to five years

over five
years

2013

3,185

3,185

3,117

3,117

Financial liabilities

67,634

63,296

12,011

142,941

62,263

61,233

9,565

133,062

Trade payables

19,526

19,530

18,009

14

18,024

Other financial
liabilities
Derivatives

4,652

1,470

94

6,216

3,455

1,047

91

4,593

61,623

51,265

207

113,094

54,325

46,626

1,158

102,109

156,619

116,034

12,312

284,965

141,170

108,920

10,814

260,904

* Prior-year figures adjusted.

When calculating cash outflows related to put options and compensation rights, it was assumed that shares would be
tendered at the earliest possible repayment date.
Derivatives comprise both cash flows from derivative financial instruments with negative fair values and cash flows
from derivatives with positive fair values for which gross settlement has been agreed. The cash outflows from derivatives
for which gross settlement has been agreed are matched in part by cash inflows. These cash inflows are not reported in the
maturity analysis. If these cash inflows were also recognized, the cash outflows presented would be substantially lower.
The cash outflows from irrevocable credit commitments are presented in note 38, classified by contractual maturities.
The maximum potential liability under financial guarantees amounted to 674 million as of December 31, 2014
(previous year: 847 million). Financial guarantees are assumed to be due immediately in all cases. They relate primarily
to guarantees.
4. MARKET RISK

4.1 Hedging policy and financial derivatives

During the course of its general business activities, the Volkswagen Group is exposed to foreign currency, interest rate,
commodity price, equity price and fund price risk. Corporate policy is to limit or eliminate such risk by means of hedging.
All necessary hedging transactions with the exception of the Scania, MAN and Porsche Holding GmbH (Salzburg)
subgroups are executed or coordinated centrally by Group Treasury. There were no significant risk concentrations in the
past fiscal year.
The following table shows the gains and losses on hedges:

million

Hedging instruments used in fair value hedges

2014

2013

523

340

Hedged items used in fair value hedges

445

354

Ineffective portion of cash flow hedges

36

47

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Notes to the Consolidated Financial Statements

The ineffective portion of cash flow hedges represents the income and expenses from changes in the fair value of hedging
instruments that exceed the changes in the fair value of the hedged items but that are documented to be within the
permitted range of 80% to 125% overall when measuring effectiveness. Such income or expenses are recognized directly
in the financial result.
In 2014, 298 million (previous year: 142 million, increasing earnings) from the cash flow hedge reserve was
transferred to the other operating result, reducing earnings, while 2 million (previous year: 1 million, reducing
earnings) was transferred to the financial result, increasing earnings, and 27 million (previous year: 23 million) was
included in the cost of sales, reducing earnings.
The Volkswagen Group uses two different methods to present market risk from nonderivative and derivative financial
instruments in accordance with IFRS 7. For quantitative risk measurement, interest rate and foreign currency risk in the
Volkswagen Financial Services subgroup are measured using a value-at-risk (VaR) model on the basis of a historical
simulation, while market risk in the other Group companies is determined using a sensitivity analysis. The value-at-risk
calculation indicates the size of the maximum potential loss on the portfolio as a whole within a time horizon of 40 days,
measured at a confidence level of 99%. To provide the basis for this calculation, all cash flows from nonderivative and
derivative financial instruments are aggregated into an interest rate gap analysis. The historical market data used in
calculating value at risk covers a period of 1,000 trading days. The sensitivity analysis calculates the effect on equity and
profit or loss by modifying risk variables within the respective market risks.
4.2 Market risk in the Volkswagen Group (excluding Volkswagen Financial Services)
4.2.1 Foreign currency risk

Foreign currency risk in the Volkswagen Group (excluding Volkswagen Financial Services) is attributable to investments,
financing measures and operating activities. Currency forwards, currency options, currency swaps and cross-currency
swaps are used to limit foreign currency risk. These transactions relate to the exchange rate hedging of all material
payments covering general business activities that are not made in the functional currency of the respective Group
companies. The principle of matching currencies applies to the Groups financing activities.
Hedging transactions entered into in 2014 as part of foreign currency risk management related primarily to the
Australian dollar, the Canadian dollar, the Swiss franc, the Chinese renminbi, sterling, the South Korean won, the
Swedish krona and the US dollar.
All nonfunctional currencies in which the Volkswagen Group enters into financial instruments are included as
relevant risk variables in the sensitivity analysis in accordance with IFRS 7.
If the functional currencies concerned had appreciated or depreciated by 10% against the other currencies, the
exchange rates shown below would have resulted in the following effects on the hedging reserve in equity and on profit
after tax. It is not appropriate to add together the individual figures, since the results of the various functional currencies
concerned are based on different scenarios.

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Notes to the Consolidated Financial Statements

DEC. 31, 2014

million

DEC. 31, 2013

+10%

10%

+10%

10%

1,515

1,678

1,570

1,407

94

204

295

244

1,320

1,321

1,000

1,000

39

40

50

50

966

1,031

564

526

17

27

48

40

459

453

423

416

130

130

96

96

Exchange rate
EUR/USD
Hedging reserve
Profit/loss after tax
EUR/GBP
Hedging reserve
Profit/loss after tax
EUR/CNY
Hedging reserve
Profit/loss after tax
EUR/CHF
Hedging reserve
Profit/loss after tax
CZK/GBP
Hedging reserve
Profit/loss after tax
EUR/KRW
Hedging reserve
Profit/loss after tax

90

91

35

35

12

13

12

12

96

96

64

64

EUR/HUF
Hedging reserve
Profit/loss after tax
EUR/SEK
Hedging reserve

60

60

122

122

35

35

51

51

Hedging reserve

94

90

75

74

Profit/loss after tax

16

16

Hedging reserve

80

74

82

79

Profit/loss after tax

15

14

Hedging reserve

59

59

64

64

Profit/loss after tax

56

56

58

58

Hedging reserve

39

39

43

43

Profit/loss after tax

15

15

Profit/loss after tax

EUR/AUD

EUR/CAD

CZK/USD

GBP/USD
Hedging reserve
Profit/loss after tax
EUR/PLN

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Notes to the Consolidated Financial Statements

4.2.2 Interest rate risk

Interest rate risk in the Volkswagen Group (excluding Volkswagen Financial Services) results from changes in market
interest rates, primarily for medium- and long-term variable interest receivables and liabilities. Interest rate swaps, crosscurrency swaps and other types of interest rate contracts are entered into to hedge against this risk primarily under fair
value or cash flow hedges, and depending on market conditions. Intragroup financing arrangements are mainly
structured to match the maturities of their refinancing. Departures from the Group standard are subject to centrally
defined limits and monitored on an ongoing basis.
Interest rate risk within the meaning of IFRS 7 is calculated for these companies using sensitivity analyses. The effects
of the risk-variable market rates of interest on the financial result and on equity are presented, net of tax.
If market interest rates had been 100 bps higher as of December 31, 2014, equity would have been 108 million
(previous year: 40 million) lower. If market interest rates had been 100 bps lower as of December 31, 2014, equity would
have been 106 million (previous year: 27 million) higher.
If market interest rates had been 100 bps higher as of December 31, 2014, profit after tax would have been 43 million
(previous year: 25 million) higher. If market interest rates had been 100 bps lower as of December 31, 2014, profit after
tax would have been 55 million (previous year: 43 million) lower.
4.2.3 Commodity price risk

Commodity price risk in the Volkswagen Group (excluding Volkswagen Financial Services) primarily results from price
fluctuations and the availability of nonferrous metals and precious metals, as well as of coal, CO2 certificates and rubber.
Forward transactions and swaps are entered into to limit these risks.
Hedge accounting in accordance with IAS 39 was applied in some cases to the hedging of commodity risk associated
with aluminum and coal.
Commodity price risk within the meaning of IFRS 7 is presented using sensitivity analyses. These show the effect on
profit after tax and equity of changes in risk variables in the form of commodity prices.
If the commodity prices of the hedged nonferrous metals, coal and rubber had been 10% higher (lower) as of
December 31, 2014, profit after tax would have been 126 million (previous year: 86 million) higher (lower).
If the commodity prices of the hedging transactions accounted for using hedge accounting had been 10% higher
(lower) as of December 31, 2014, equity would have been 55 million (previous year: 49 million) higher (lower).
4.2.4 Equity and bond price risk

The Spezialfonds (special funds) launched using surplus liquidity and the equity interests measured at fair value are
subject in particular to equity price and bond price risk, which can arise from fluctuations in quoted market prices, stock
exchange indices and market rates of interest. The changes in bond prices resulting from variations in the market rates of
interest are quantified in sections 4.2.1 and 4.2.2, as are the measurement of foreign currency and other interest rate risks
arising from the special funds and the equity interests measured at fair value. As a rule, we counter the risks arising from
the special funds by ensuring a broad diversification of products, issuers and regional markets when investing funds, as
stipulated by our Investment Guidelines. In addition, we use exchange rate hedges in the form of futures contracts when
market conditions are appropriate.
As part of the presentation of market risk, IFRS 7 requires disclosures on how hypothetical changes in risk variables
affect the price of financial instruments. Potential risk variables here are in particular quoted market prices or indices, as
well as interest rate changes as bond price parameters.
If share prices had been 10% higher as of December 31, 2014, equity would have been 259 million (previous year:
194 million) higher. If share prices had been 10% lower as of December 31, 2014, equity would have been 275 million
(previous year: 197 million) lower.
4.3 Market risk at Volkswagen Financial Services

Exchange rate risk in the Volkswagen Financial Services subgroup is mainly attributable to assets that are not denominated
in the functional currency and from refinancing within operating activities. Interest rate risk relates to refinancing without
matching maturities and the varying interest rate elasticity of individual asset and liability items. The risks are limited by
the use of currency and interest rate hedges.

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Notes to the Consolidated Financial Statements

Microhedges and portfolio hedges are used for interest rate hedging. Fixed-rate assets and liabilities included in the
hedging strategy are recognized at fair value, as opposed to their original subsequent measurement at amortized cost. The
resulting effects in the income statement are offset by the corresponding gains and losses on the interest rate hedging
instruments (swaps). Currency hedges (currency forwards and cross-currency swaps) are used to mitigate foreign currency
risk. All cash flows in foreign currency are hedged.
As of December 31, 2014, the value at risk was 98 million (previous year: 151 million) for interest rate risk and
112 million (previous year: 149 million) for foreign currency risk.
The entire value at risk for interest rate and foreign currency risk at the Volkswagen Financial Services subgroup was
179 million (previous year: 224 million).
5. M ETHOD S FO R MON ITOR I N G H E DGE EF FE CTIV E N ES S

In the Volkswagen Group, hedge effectiveness is assessed prospectively using the critical terms match method and using
statistical methods in the form of a regression analysis. Retrospective analysis of effectiveness uses effectiveness tests in the
form of the dollar offset method or a regression analysis.
Under the dollar offset method, the changes in value of the hedged item expressed in monetary units are compared
with the changes in value of the hedging instrument expressed in monetary units.
Where regression analysis is used, the change in value of the hedged item is presented as an independent variable, and
that of the hedging instrument as a dependent variable. Hedge relationships are classified as effective if they have
sufficient coefficients of determination and slope factors.
N OT I O N A L A M O U N T O F D E R I VAT I V E S

REMAINING TERM

million

under one year

within one to
five years

over five years

TOTAL

TOTAL

NOTIONAL

NOTIONAL

AMOUNT

AMOUNT

Dec. 31, 2014

Dec. 31, 2013

Notional amount of hedging

instruments
used in cash flow hedges:
Interest rate swaps

1,228

3,926

5,154

6,127

Currency forwards

40,822

43,421

84,243

65,366

Currency options

7,222

9,024

16,246

10,365

Currency swaps

4,461

474

4,938

4,883

Cross-currency swaps

315

1,300

1,615

1,293

Commodity futures contracts

360

498

858

749

18,991

42,981

14,216

76,188

65,568

61

5,437

1,336

6,774

7,077

Notional amount of other

derivatives:
Interest rate swaps
Interest rate option contracts
Currency forwards
Other currency options

45

91

137

42

Currency swaps

8,475

259

8,734

5,226

Cross-currency swaps

4,034

4,890

11

8,935

10,022

895

1,099

1,994

1,384

Commodity futures contracts

In addition to the derivatives used for hedging foreign currency, interest rate and price risk, the Group held options and
other derivatives on equity instruments at the reporting date with a notional amount of 1.5 billion (previous year:
1.5 billion) whose remaining maturity is under one year.

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Notes to the Consolidated Financial Statements

Existing cash flow hedges in the notional amount of 18 million (previous year: 214 million) were discontinued because
of a reduction in the projections. 0 million (previous year: 1 million) was transferred from the cash flow hedge reserve to
the financial result, decreasing earnings.
Items hedged under cash flow hedges are expected to be realized in accordance with the maturity buckets of the
hedges reported in the table.
The fair values of the derivatives are estimated using market data at the balance sheet date as well as by appropriate
valuation techniques. The following term structures were used for the calculation:

in %

EUR

AUD

CAD

CHF

CNY

GBP

KRW

SEK

USD

Interest rate for

six months

0.1286

2.6375

1.2794

0.0323

4.8462

0.5827

2.1152

0.2888

0.2718

Interest rate for

one year

0.1165

2.5215

1.3166

0.0090

4.4683

0.6412

2.0550

0.2574

0.4307

Interest rate for

five years

0.3587

2.6700

1.7710

0.0630

4.1750

1.4417

2.2050

0.6445

1.7550

Interest rate for

ten years

0.8125

3.1450

2.2610

0.5175

3.8400

1.8473

2.4400

1.2625

2.2560

35. Capital management

The Groups capital management ensures that goals and strategies can be achieved in the interests of shareholders,
employees and other stakeholders. In particular, management focuses on generating the minimum return on invested
assets in the Automotive Division that is required by the capital markets, and on increasing the return on equity in the
Financial Services Division. In the process, it aims overall to achieve the highest possible growth in the value of the Group
and its divisions for the benefit of all the Companys stakeholder groups.
In order to maximize the use of resources in the Automotive Division and to measure the success of this, we have for a
number of years been using a value-based management system, with value contribution as an absolute performance
measure and return on investment (ROI) as a relative indicator.
Value contribution is defined as the difference between operating profit after tax and the opportunity cost of invested
capital. The opportunity cost of capital is calculated by multiplying the market cost of capital by average invested capital.
Invested capital is calculated by taking the operating assets reported in the balance sheet (property, plant and equipment,
intangible assets, lease assets, inventories and receivables) and deducting non-interest-bearing liabilities (trade payables
and payments on account received). Average invested capital is derived from the balance at the beginning and the end of
the reporting period. The Automotive Division generated a clearly positive value contribution of 5,660 million in the
reporting period.
The return on investment (ROI) is defined as the return on invested capital for a particular period based on the
operating profit after tax. If the return on investment exceeds the market cost of capital, there is an increase in the value of
the invested capital and a positive value contribution. In the Group, we have defined a minimum required rate of return on
invested capital of 9%, which applies to both the business units and the individual products and product lines. The return
on investment therefore serves as a consistent target in operational and strategic management and is used to measure
target attainment for the Automotive Division, the individual business units, and projects and products. The return on
investment achieved for the Automotive Division in the reporting period was 14.9%, well above our minimum required
rate of return of 9%.
Due to the specific features of the Financial Services Division, its management focuses on return on equity, a special
target linked to invested capital. This measure is calculated as the ratio of profit before tax to average equity. Average equity
is calculated from the balance at the beginning and the end of the reporting period. In addition, the goals of the Financial
Services Division are to meet the banking supervisory authorities regulatory capital requirements, to procure equity for
the growth planned in the coming fiscal years and to support its external rating by ensuring capital adequacy. To ensure
compliance with prudential requirements at all times, a planning procedure integrated into internal reporting has been
put in place at Volkswagen Financial Services, allowing the required equity to be continuously determined on the basis of
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Notes to the Consolidated Financial Statements

actual and expected business performance. In the reporting period, this again ensured that regulatory minimum capital
requirements were always met both at Group level and at the level of subordinate companies individual, specific capital
requirements.
The return on investment and value contribution in the Automotive Division as well as the return on equity in the
Financial Services Division are shown in the following table:

million

2014

2013

Operating profit after capital

11,734

10,536

Invested capital (average)

78,889

72,749

14.9

14.5

Automotive Division1

Return on investment (ROI) in %

Cost of capital in %

7.7

8.3

Opportunity cost of invested capital

6,074

6,038

Value contribution2

5,660

4,497

Financial Services Division

Profit before tax

1,965

1,966

Average equity

15,714

13,711

Return on equity before tax in %

12.5

14.3

Equity ratio in %

11.3

10.5

1 Including proportionate inclusion of the Chinese joint ventures and allocation of consolidation adjustments between the Automotive and Financial Services
Divisions; excluding effects on earnings and assets from purchase price allocation.
2 The value contribution corresponds to the Economic Value Added (EVA). EVA is a registered trademark of Stern Stewart & Co.

36. Contingent liabilities

million

Liabilities under guarantees

Liabilities under warranty contracts
Assets pledged as security for third-party liabilities
Other contingent liabilities

Dec. 31, 2014

Dec. 31, 2013

674

847

58

155

1,411

1,468

2,359

1,750

4,502

4,220

The trust assets and liabilities of the savings and trust entities belonging to the South American subsidiaries not included in
the consolidated balance sheet amount to 802 million (previous year: 601 million).
In the case of liabilities from guarantees (financial guarantee contracts), the Group is required to make specific
payments if the debtors fail to meet their financial obligations. Liabilities arising from the assets pledged as security for
third-party liabilities primarily include the pledge of claims under certificates of deposit with Bankhaus Metzler in the
amount of 1.4 billion to secure a loan granted to Fleet Investments B.V. by Bankhaus Metzler (please see the information
on the basis of consolidation and joint ventures).

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Notes to the Consolidated Financial Statements

The other contingent liabilities are attributable primarily to potential liabilities arising from matters relating to taxes and
customs duties, as well as to litigation and proceedings relating to suppliers, dealers, customers and employees.

37. Litigation
In the course of their operating activities, Volkswagen AG and the companies in which it is directly or indirectly invested
become involved in legal disputes and official proceedings in Germany and internationally. In particular, such proceedings
may occur in relation to suppliers, dealers, customers, employees, or investors. For the companies involved, these may
result in payment or other obligations. Above all in cases where US customers in particular assert claims for vehicle defects
individually or by way of a class action, highly cost-intensive measures may have to be taken and substantial compensation
or punitive damages paid. Corresponding risks also result from US patent infringement proceedings.
Where transparent and economically viable, adequate insurance cover is taken out for these risks and appropriate
provisions recognized for the remaining identifiable risks. The Company does not believe, therefore, that these risks will
have a sustained effect on the economic position of the Group. However, as some risks cannot be assessed or can only be
assessed to a limited extent, the possibility of loss or damage not being covered by the insured amounts and provisions
cannot be ruled out.
ARFB Anlegerschutz UG (haftungsbeschrnkt), Berlin, brought an action against Porsche Automobil Holding SE,
Stuttgart, and Volkswagen AG for claims for damages allegedly assigned to it in the amount of approximately 1.8 billion.
The plaintiff asserts that these claims are based on alleged breaches by the defendants of legislation to protect the capital
markets in connection with Porsches acquisition of Volkswagen shares in 2008. In various cases since 2010, investors
initiated conciliation proceedings for other alleged damages including claims against Volkswagen AG that amounted to
approximately 4.6 billion in total and also related to transactions at that time. In each case, Volkswagen rejected the
claims asserted and refused to participate in any conciliation proceedings.
In 2011, the European Commission opened antitrust proceedings against European truck manufacturers including
MAN and Scania. In November 2014, the European Commission sent a statement of objections to MAN, Scania and the
other truck manufacturers concerned, in which it informed the truck manufacturers of the objections raised against them
and gave them the right to comment extensively on the objections raised and to exercise other rights of defense before any
decision is reached. The statement of objections is currently being reviewed. Given the fact that the issues are still being
clarified, it is too early to judge whether the European Commissions investigation will result in financial liabilities for
MAN and Scania and, if so, to assess their amount. As a consequence, neither MAN nor Scania have recognized provisions
or disclosed contingent liabilities.
Antitrust proceedings, also opened in 2011, by the Korea Fair Trade Commission (KFTC) against several truck
manufacturers including MAN and Scania were brought to a close in fiscal year 2013 with decisions to impose administrative fines on all manufacturers involved. In spring 2014, MAN and Scania lodged an appeal against the decision to
impose an administrative fine on each of them.
The Annual General Meeting of MAN SE approved the conclusion of a control and profit and loss transfer agreement
between MAN SE and Truck & Bus GmbH, a subsidiary of Volkswagen AG, in June 2013. In July 2013, award proceedings
were instituted to review the appropriateness of the cash settlement set out in the agreement in accordance with section
305 of the Aktiengesetz (AktG German Stock Corporation Act) and the cash compensation in accordance with section 304
of the AktG. It is not uncommon for noncontrolling interest shareholders to institute such proceedings. Volkswagen
continues to maintain that the results of the valuation are correct. The appropriateness of the valuation was confirmed by
the audit firms engaged by the parties and by the court-appointed auditor of the agreement.
Suzuki Motor Corporation has filed an action against Volkswagen AG at a London court of arbitration for retransfer of
the 19.9% interest held in Suzuki, and for damages. Volkswagen considers the claims to be unfounded and has itself filed
counterclaims. The court of arbitration is expected to reach a decision in the first half of 2015.

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Notes to the Consolidated Financial Statements

38. Other financial obligations

PAYABLE

million

PAYABLE

PAYABLE

TOTAL

2014

2015 2018

from 2019

Dec. 31, 2013

7,391

1,267

8,658

636

290

925

10

10

Purchase commitments in respect of

property, plant and equipment
intangible assets
investment property
Obligations from
loan commitments to unconsolidated subsidiaries

107

107

2,918

132

298

3,348

long-term leasing and rental contracts

825

2,181

2,327

5,333

Miscellaneous other financial obligations

4,208

1,697

83

5,988

irrevocable credit commitments to customers

PAYABLE

million

PAYABLE

PAYABLE

TOTAL

2015

2016 2019

from 2020

Dec. 31, 2014

8,524

1,826

10,350

555

585

1,140

Purchase commitments in respect of

property, plant and equipment
intangible assets
investment property
Obligations from
loan commitments to unconsolidated subsidiaries

131

149

279

3,540

129

356

4,025

long-term leasing and rental contracts

899

2,351

2,472

5,721

Miscellaneous other financial obligations

4,651

1,005

112

5,768

irrevocable credit commitments to customers

Other financial obligations from long-term leasing and rental contracts are partly offset by expected income from
subleases of 968 million (previous year: 902 million).
The miscellaneous other financial obligations contain obligations under an irrevocable credit commitment in the
amount of 1.3 billion to LeasePlan Corporation N.V., Amsterdam, the Netherlands, a Volkswagen Group joint venture,
with a term until December 2015. The loan has not been drawn down to date.

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Notes to the Consolidated Financial Statements

39. Total audit fees of the Group auditors

Under the provisions of the Handelsgesetzbuch (HGB German Commercial Code), Volkswagen AG is obliged to disclose
the total audit fee of the Group auditors in Germany.

million

Financial statement audit services

2014

2013

13

12

Other assurance services

Tax advisory services

Other services

11

30

22

2014

2013

132,514

127,089

27,684

25,788

40. Total expense for the period

million

Cost of materials
Cost of raw materials, consumables and supplies,
purchased merchandise and services
Personnel expenses
Wages and salaries
Social security, post-employment and other employee benefit costs

6,151

5,959

33,834

31,747

2014

2013

Performance-related wage-earners

225,454

222,654

Salaried staff

276,249

267,105

501,703

489,759

(8,011)

(9,340)

41. Average number of employees during the year

of which in the passive phase of partial retirement

Vocational trainees
Employees of Chinese joint ventures

271

17,145

16,255

518,848

506,014

64,575

57,052

583,423

563,066

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

42. Events after the balance sheet date

There were no significant events after the end of fiscal year 2014.

43. Related party disclosures in accordance with IAS 24

Related parties as defined by IAS 24 are natural persons and entities that Volkswagen AG has the ability to control or on
which it can exercise significant influence, or natural persons and entities that have the ability to control or exercise
significant influence on Volkswagen AG, or that are influenced by another related party of Volkswagen AG.
At 50.73%, Porsche SE held the majority of the voting rights in Volkswagen AG as of the reporting date. The creation of
rights of appointment for the State of Lower Saxony was resolved at the Extraordinary General Meeting of Volkswagen AG
on December 3, 2009. As a result, Porsche SE cannot appoint the majority of the members of Volkswagen AGs Supervisory
Board for as long as the State of Lower Saxony holds at least 15% of Volkswagen AGs ordinary shares. However, Porsche SE
has the power to participate in the operating policy decisions of the Volkswagen Group.
The contribution of Porsche SEs holding company operating business to Volkswagen AG on August 1, 2012 has the
following effects on the agreements between Porsche SE, Volkswagen AG and companies of the Porsche Holding Stuttgart
Group that existed prior to the contribution and were entered into on the basis of the Comprehensive Agreement and its
related implementation agreements:
> Volkswagen AG continues to indemnify Porsche SE against certain financial guarantees issued by Porsche SE to creditors
of the companies belonging to the Porsche Holding Stuttgart Group up to the amount of its share in the capital of Porsche
Holding Stuttgart, which amounts to 100% since the contribution as of August 1, 2012. Porsche Holding Finance plc,
Dublin, Ireland, was contributed to the Volkswagen Group in the course of the transfer of Porsche SEs holding company
operating business. Since August 1, 2012, the indemnification therefore includes financial guarantees issued by
Porsche SE to creditors of Porsche Holding Finance plc in relation to interest payments on and the repayment of bonds
in the aggregate amount of 310 million. As part of the contribution of Porsche SEs holding company operating business to Volkswagen AG, Volkswagen AG undertook to assume standard market liability compensation effective August 1,
2012 for guarantees issued to external creditors, whereby it is indemnified internally.
> Volkswagen AG continues to indemnify Porsche SE internally against claims by the Einlagensicherungsfonds (German
deposit protection fund) after Porsche SE submitted an indemnification agreement required by the Bundesverband
Deutscher Banken (Association of German Banks) to the Einlagensicherungsfonds in August 2009. Volkswagen AG has
also undertaken to indemnify the Einlagensicherungsfonds against any losses caused by measures taken by the latter in
favor of a bank in which Volkswagen AG holds a majority interest.
> Under certain conditions, Porsche SE continues to indemnify Porsche Holding Stuttgart, Porsche AG and their legal
predecessors against tax liabilities that exceed the obligations recognized in the financial statements of those companies
relating to periods up to and including July 31, 2009. Based on the results of the external tax audit for the assessment
periods 2006 to 2008 that has now been completed, a compensation obligation running into the high double-digit
millions of euros would arise for Volkswagen AG. New information emerging in the future from the external tax audit
announced for the 2009 assessment period could result in an increase or decrease in the potential compensation
obligation.
Under the terms of the Comprehensive Agreement, Porsche SE and Volkswagen AG had granted each other put and call
options with regard to the remaining 50.1% interest in Porsche Holding Stuttgart held by Porsche SE until the
contribution of its holding company operating business to Volkswagen AG. Both Volkswagen AG (if it had exercised its call
option) and Porsche SE (if it had exercised its put option) had undertaken to bear the tax burden resulting from the exercise
of the options and any subsequent activities in relation to the equity investment in Porsche Holding Stuttgart (e.g. from
recapture taxation on the spin-off in 2007 and/or 2009). If tax benefits had accrued to Volkswagen AG, Porsche Holding
Stuttgart, Porsche AG, or their respective subsidiaries as a result of recapture taxation on the spin-off in 2007 and/or 2009,
the purchase price to be paid by Volkswagen AG for the transfer of the outstanding 50.1% equity investment in Porsche
Holding Stuttgart if the put option had been exercised by Porsche SE would have been increased by the present value of the

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Notes to the Consolidated Financial Statements

tax benefit. This arrangement was taken over under the terms of the contribution agreement to the effect that Porsche SE
has a claim against Volkswagen AG for payment in the amount of the present value of the realizable tax benefits from any
recapture taxation of the spin-off in 2007 as a result of the contribution. It was also agreed under the terms of the
contribution that Porsche SE will indemnify Volkswagen AG, Porsche Holding Stuttgart and their subsidiaries against taxes
if measures taken by or not taken by Porsche SE result in recapture taxation for 2012 at these companies in the course of or
following implementation of the contribution. In this case, too, Porsche SE is entitled to assert a claim for payment against
Volkswagen AG in the amount of the present value of the realizable tax benefits that arise at the level of Volkswagen AG or
one of its subsidiaries as a result of such a transaction.
Further agreements were entered into and declarations were issued in connection with the contribution of Porsche SEs
holding company operating business to Volkswagen AG, in particular:
> Porsche SE issued various guarantees to Volkswagen AG in the course of the contribution relating to Porsche Holding
Stuttgart, Porsche AG and its other transferred investees. Among other things, these relate to the proper issuance of and
full payment for shares and capital contributions, and/or to the ownership of the shares of Porsche Holding Stuttgart
and Porsche AG.
> Under the terms of the contribution of its holding company operating business, Porsche SE also issued guarantees to
Volkswagen AG for other assets transferred and liabilities assumed. In doing so, Porsche SE guarantees that these have
not been assigned and are, in principle, free from third-party rights up to the date of completion of the contribution.
> As a general principle, Porsche SEs liabilities for these guarantees are restricted to the consideration paid by
Volkswagen AG.
> Porsche SE indemnifies its contributed subsidiaries, Porsche Holding Stuttgart, Porsche AG and their subsidiaries
against liabilities to Porsche SE that relate to the period up to and including December 31, 2011 and that exceed the
obligations recognized in the financial statements of those companies for that period.
> Porsche SE indemnifies Porsche Holding Stuttgart and Porsche AG against obligations arising from certain legal
disputes; this includes the costs of an appropriate legal defense.
> Moreover, Porsche SE indemnifies Volkswagen AG, Porsche Holding Stuttgart, Porsche AG and their subsidiaries
against half of the taxes (other than taxes on income) arising at those companies in conjunction with the contribution
that would not have been incurred in the event of the exercise of the call option on the shares of Porsche Holding
Stuttgart that continued to be held by Porsche SE until the contribution. Volkswagen AG therefore indemnifies Porsche
SE against half of such taxes that it incurs. In addition, Porsche Holding Stuttgart is indemnified against half of the land
transfer tax and other costs triggered by the merger.
> Additionally, Porsche SE and Porsche AG agreed to allocate any subsequent VAT receivables or liabilities from
transactions in the period up to December 31, 2009 to the company entitled to the receivable or incurring the liability.
> A range of information, conduct and cooperation obligations were agreed by Porsche SE and the Volkswagen Group.
According to a notification dated January 5, 2015, the State of Lower Saxony and Hannoversche Beteiligungsgesellschaft
mbH, Hanover, held 20.00% of the voting rights of Volkswagen AG on December 31, 2014. As mentioned above, the
General Meeting of Volkswagen AG on December 3, 2009 also resolved that the State of Lower Saxony may appoint two
members of the Supervisory Board (right of appointment).
Members of the Board of Management and Supervisory Board of Volkswagen AG are members of supervisory and
management boards or shareholders of other companies with which Volkswagen AG has relations in the normal course of
business. All transactions with related parties are conducted on an arms length basis.
The following tables present the amounts of supplies and services transacted, as well as outstanding receivables and
liabilities, between consolidated companies of the Volkswagen Group and related parties.

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Notes to the Consolidated Financial Statements

R E L AT E D PA R T I E S

SUPPLIES AND SERVICES

SUPPLIES AND SERVICES

RENDERED

million

Porsche SE

RECEIVED

2014

2013

2014

2013

24

13

11

Supervisory Board members

Board of Management members

12

989

909

767

687

15,352

13,547

1,388

1,278

Unconsolidated subsidiaries
Joint ventures and their
majority interests
Associates and their
majority interests

198

249

575

369

Pension plans

Other related parties

State of Lower Saxony, its

majority interests and joint
ventures

RECEIVABLES

LIABILITIES

(INCLUDING COLLATERAL) FROM

(INCLUDING OBLIGATIONS) TO

million

Porsche SE

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

356

361

14

419

Supervisory Board members

218

165

Board of Management members

69

56

673

1,172

815

587

6,295

5,758

2,127

2,064
73

Unconsolidated subsidiaries
Joint ventures and their
majority interests
Associates and their
majority interests

69

26

168

Pension plans

Other related parties

27

26

State of Lower Saxony, its

majority interests and joint
ventures

The tables above do not contain the dividend payments of 2,997 million (previous year: 2,827 million) received from the
joint ventures and associates or the dividends of 599 million (previous year: 524 million) paid to Porsche SE.
The changes in supplies and services received from and rendered to joint ventures and their majority interests are
primarily attributable to the operating activities of the Chinese joint ventures.

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Notes to the Consolidated Financial Statements

The supplies and services received from Porsche SE relate mainly to standard market liability compensation for
guarantees assumed. The supplies and services rendered to Porsche SE relate mainly to interest income on loans granted.
The supplies and services received from Board of Management members relate mainly to shares tendered as part of the
offer to Scania shareholders.
The receivables from Porsche SE comprise a loan receivable. The obligations to Porsche SE consist mainly of liability
compensation for guarantees and, the previous year, term deposits.
Obligations to joint ventures contain miscellaneous other financial obligations under an irrevocable credit commitment in the amount of 1.3 billion to LeasePlan Corporation N.V., Amsterdam, the Netherlands, a Volkswagen Group joint
venture, with a term until December 2015.
As in the previous year, obligations to members of the Supervisory Board amounting to 218 million (previous year:
165 million) relate primarily to interest-bearing bank balances of Supervisory Board members that were invested at
standard market terms and conditions at Volkswagen Group companies.
Obligations to the Board of Management comprise outstanding balances for bonuses payable to Board of Management
members in the amount of 53,686,233 (previous year: 51,964,300) and the amounts granted to Dr. Macht on
termination of his employment as a Board of Management member.
In addition to the amounts shown above, the following benefits and remuneration were recognized for the members of
the Board of Management and Supervisory Board of the Volkswagen Group in the course of their activities as members of
these bodies:

Short-term benefits
Post-employment benefits
Termination benefits

2014

2013

77,704,758

73,902,093

4,409,573

6,103,278

12,809,128

94,923,459

80,005,371

The employee representatives on the Supervisory Board are also entitled to a regular salary as set out in their employment
contracts. This is based on the provisions of the Betriebsverfassungsgesetz (BetrVG German Works Constitution Act) and
represents an appropriate remuneration for their functions and activities in the Company. The same also applies to the
representative of the senior executives on the Supervisory Board.
The post-employment benefits relate to additions to pension provisions for current members of the Board of
Management (see note 46). Disclosures on pension provisions for members of the Board of Management can be found in
note 46.
The termination benefits comprise the amounts agreed to be paid to Dr. Macht until he reaches the age of 63.

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Notes to the Consolidated Financial Statements

44. Notices and disclosure of changes regarding the ownership of voting rights in
Volkswagen AG in accordance with the Wertpapierhandelsgesetz (WpHG German
Securities Trading Act)
PORSCHE

1) Porsche Automobil Holding SE, Stuttgart, Germany has notified us in accordance with section 21(1) of the WpHG that its
share of the voting rights in Volkswagen Aktiengesellschaft, Wolfsburg, Germany, exceeded the threshold of 50% on
January 5, 2009 and amounted to 50.76% (149,696,680 voting rights) at this date.
2) The following persons notified us in accordance with section 21(1) of the WpHG that their share of the voting rights in
Volkswagen Aktiengesellschaft in each case exceeded the threshold of 50% on January 5, 2009 and in each case amounted
to 50.76% (149,696,680 voting rights) at this date. All of the above-mentioned 149,696,680 voting rights are attributable
to each of the persons making the notification in accordance with section 22(1) sentence 1 no. 1 of the WpHG. The voting
rights attributed to the persons making the notifications are held via subsidiaries within the meaning of section 22(3) of
the WpHG, whose attributed share of the voting rights amounts to 3% or more and whose names are given in brackets:
Mag. Josef Ahorner, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Mag. Louise Kiesling, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Prof. Ferdinand Alexander Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Oliver Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Kai Alexander Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),

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Notes to the Consolidated Financial Statements

Mark Philipp Porsche, Austria

(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Gerhard Anton Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise DaxerPich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche
GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH,
Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Ing. Hans-Peter Porsche, Austria
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Peter Daniell Porsche, Austria
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH,
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Wolfgang Porsche, Germany
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Wolfgang Porsche GmbH, Grnwald/
Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Ferdinand Porsche Privatstiftung, Salzburg/Austria
(Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech
GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche
GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/
Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE,
Stuttgart/Germany),
Familie Porsche Privatstiftung, Salzburg/Austria
(Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche
GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE,
Stuttgart/Germany),
Ferdinand Porsche Holding GmbH, Salzburg/Austria
(Louise Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Familie Porsche Holding GmbH, Salzburg/Austria
(Ing. Hans-Peter Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche
Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),

277

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Louise Daxer-Pich GmbH, Salzburg/Austria

(Louise Daxer-Piech GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany; Familien PorscheDaxer-Piech Beteiligung GmbH, Grnwald/Germany),
Prof. Ferdinand Alexander Porsche GmbH, Salzburg/Austria
(Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/
Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Gerhard Anton Porsche GmbH, Salzburg/Austria
(Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany),
Louise Daxer-Piech GmbH, Grnwald/Germany
(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Ferdinand Alexander Porsche GmbH, Grnwald/Germany
(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Gerhard Porsche GmbH, Grnwald/Germany
(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Ing. Hans-Peter Porsche GmbH, Salzburg/Austria
(Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche
Automobil Holding SE, Stuttgart/Germany),
Hans-Peter Porsche GmbH, Grnwald/Germany
(Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Wolfgang Porsche GmbH, Grnwald/Germany
(Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Familie Porsche Beteiligung GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Porsche GmbH, Stuttgart/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Hans Michel Pich, Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Hans Michel Piech GmbH, Grnwald/Germany; Dr. Hans Michel
Pich GmbH, Salzburg/Austria),
Dr. Hans Michel Pich GmbH, Salzburg/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Hans Michel Piech GmbH, Grnwald/Germany),
Hans Michel Piech GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),

278

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Dipl.-Ing. Dr. h.c. Ferdinand Pich, Austria

(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany; Dipl.-Ing. Dr. h.c.
Ferdinand Pich GmbH, Salzburg/Austria; Ferdinand Karl Alpha Privatstiftung, Vienna/Austria),
Ferdinand Karl Alpha Privatstiftung, Vienna/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany; Dipl.-Ing. Dr. h.c.
Ferdinand Pich GmbH, Salzburg/Austria),
Dipl.-Ing. Dr. h.c. Ferdinand Pich GmbH, Salzburg/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany),
Ferdinand Piech GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany).
3) Porsche Holding Gesellschaft m.b.H., Salzburg/Austria, and Porsche GmbH, Salzburg/Austria, notified us in
accordance with section 21(1) of the WpHG that their share of the voting rights in Volkswagen Aktiengesellschaft in
each case exceeded the threshold of 50% on January 5, 2009 and in each case amounted to 53.13% (156,702,015
voting rights) at this date.
All the above-mentioned 156,702,015 voting rights are attributable to Porsche Holding Gesellschaft m.b.H. in
accordance with section 22(1) sentence l no. 1 of the WpHG. The companies via which the voting rights are actually
held and whose attributed share of the voting rights amounts to 3% or more are:
Porsche GmbH, Salzburg/Austria;
Porsche GmbH, Stuttgart/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany.
Of the above-mentioned 156,702,015 voting rights, 50.76% of the voting rights (149,696,753 voting rights) are
attributable to Porsche GmbH, Salzburg/Austria, in accordance with section 22(1) sentence 1 no. 1 of the WpHG. The
companies via which the voting rights are actually held and whose attributed share of the voting rights amounts to 3%
or more are:
Porsche GmbH, Stuttgart/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany.

4) Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG, Stuttgart, Germany has notified us in accordance with section 21(1)
of the WpHG that its (indirect) share of the voting rights in Volkswagen Aktiengesellschaft, Wolfsburg, Germany,
exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on September 29,
2010 and amounted to 50.74% of the voting rights (149,696,680 voting rights) at this date.
Of this figure, 50.74% of the voting rights (149,696,680 voting rights) are attributable to Porsche Wolfgang 1.
Beteiligungs GmbH & Co. KG in accordance with section 22(1) sentence 1 no. 1 of the WpHG.
The voting rights attributed to Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG are held via the following enterprises
controlled by it, whose share of the voting rights in Volkswagen Aktiengesellschaft amounts to 3% or more in each
case: Wolfgang Porsche GmbH, Grnwald, Familie Porsche Beteiligung GmbH, Grnwald, Porsche Automobil Holding
SE, Stuttgart.
These voting rights were not reached by exercise of purchase rights resulting from financial instruments according to
25, section 1, sentence 1 of the Wertpapierhandelsgesetz (Securities Trading Law).

279

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

5) We received the following notification in accordance with article 25 WpHG on February 1, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Porsche Piech Holding GmbH, Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: January 31, 2013

6.

Reportable share of voting rights: 53.10% (corresponds to 156,701,942 voting rights)

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 2.00% (corresponds to 5,901,796 voting rights)
of which held indirectly: 2.00% (corresponds to 5,901,796 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 53.10% (corresponds to
156,701,942 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25 WpHG:

Chain of controlled companies: Porsche Gesellschaft m.b.H., Salzburg; Porsche Piech GmbH & Co.
KG, Salzburg
Exercise period: from December 31, 2022

6) We received the following notification in accordance with article 25 WpHG on February 1, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Porsche Gesellschaft m.b.H., Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: January 31, 2013

6.

Reportable share of voting rights: 53.10% (corresponds to 156,701,942 voting rights)

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 2.00% (corresponds to 5,901,796 voting rights)
of which held indirectly: 2.00% (corresponds to 5,901,796 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 53.10% (corresponds to
156,701,942 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25 WpHG:

Chain of controlled companies: Porsche Piech GmbH & Co. KG, Salzburg
Exercise period: from December 31, 2022

280

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

7) We received the following notification in accordance with article 25a, Section 1 WpHG on August 2, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: LK Holding GmbH, Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: July 30, 2013

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 0% (corresponds to 0 voting
rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Spaltungs- und bernahmsvertrag
Maturity: n/a
Expiration date: n/a

281

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

8) We received the following notification in accordance with article 25a, Section 1 WpHG on August 12, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: LK Holding GmbH, Salzburg, Austria

3.

Reason for notification: falling below threshold

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: August 10, 2013

6.

Reportable share of voting rights: 0.00% (corresponds to 0 voting rights) calculated from the following
total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 0.00% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to
149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Maturity: n/a
Expiration date: n/a

9) On August 12, 2013, LK Holding GmbH, Salzburg, Austria, has notified us in accordance with article 21, section 1 of
the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg, Germany, exceeded
the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on August 10, 2013 and
amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date.
Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to LK Holding GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to LK Holding GmbH are held via the following enterprises controlled by it, whose share of
the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case: Porsche Automobil
Holding SE, Stuttgart; Familien Porsche-Kiesling Beteiligung GmbH, Grnwald; Louise Daxer-Piech GmbH,
Grnwald.

282

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

10) On August 12, 2013, Louise Daxer-Piech GmbH, Salzburg, Austria, has notified us in accordance with article 21,
section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, fell below the thresholds of 50%, 30%, 25%, 20%, 15%, 10%, 5% and 3% of the voting rights on August
10, 2013 and amounted to 0% of the voting rights (0 voting rights) at this date.
11) On September 11, 2013, Ahorner Alpha Beteiligungs GmbH, Grnwald, Germany, has notified us in accordance with
article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights
on September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Alpha Beteiligungs GmbH
in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Alpha Beteiligungs GmbH are held via the following enterprises controlled by
it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Porsche Automobil Holding SE, Stuttgart.
12) On September 11, 2013, Ahorner Beta Beteiligungs GmbH, Grnwald, Germany, has notified us in accordance with
article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights
on September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Beta Beteiligungs GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Beta Beteiligungs GmbH are held via the following enterprises controlled by it,
whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Ahorner Alpha Beteiligungs GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.
13) On September 11, 2013, Louise Daxer-Piech GmbH, Salzburg, Austria, has notified us in accordance with article 21,
section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on
September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Louise Daxer-Piech GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Louise Daxer-Piech GmbH are held via the following enterprises controlled by it, whose
share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case: Ahorner
Beta Beteiligungs GmbH, Grnwald; Ahorner Alpha Beteiligungs GmbH, Grnwald; Porsche Automobil Holding SE,
Stuttgart.
14) On September 11, 2013, Ahorner Holding GmbH, Salzburg, Austria, has notified us in accordance with article 21,
section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on
September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Holding GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Holding GmbH are held via the following enterprises controlled by it, whose
share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case: Louise
Daxer-Piech GmbH, Salzburg, Austria; Ahorner Beta Beteiligungs GmbH, Grnwald; Ahorner Alpha Beteiligungs
GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.

283

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

15) On December 04, 2013, Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH, Stuttgart, Germany, has notified us in
accordance with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN
AKTIENGESELLSCHAFT, Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30%
and 50% of the voting rights on December 2, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting
rights) at this date. Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Porsche
Wolfgang 1. Beteiligungsverwaltungs GmbH in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH are held via the following
enterprises controlled by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3%
or more in each case: Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG, Stuttgart; Wolfgang Porsche GmbH, Stuttgart;
Familie Porsche Beteiligung GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.
16)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Wolfgang Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to
149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

284

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

17)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Ing. Hans-Peter Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

285

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

18)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Peter Daniell Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

286

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

19)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Ferdinand Oliver Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

287

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

20)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Kai Alexander Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

288

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

21)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Mag. Mark Philipp Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

289

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

22)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Gerhard Anton Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

290

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

23)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Louise Kiesling, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire
through a structural agreement
Maturity: n/a
Expiration date: n/a

291

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

24)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Geraldine Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

292

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

25)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Diana Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

293

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

26)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Dr. Christian Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

294

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

27)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dipl.-Design. Stephanie Porsche-Schrder, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

295

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

28)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Ferdinand Rudolf Wolfgang Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

296

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

29)

We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Felix Alexander Porsche, Germany

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from
the following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a
WpHG: 50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25
WpHG: 0% (corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a
structural agreement
Maturity: n/a
Expiration date: n/a

30) On December 16, 2014, Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH, Stuttgart, Germany, has notified us in
accordance with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN
AKTIENGESELLSCHAFT, Wolfsburg, Germany, fell below the thresholds of 50%, 30%, 25%, 20%, 15%, 10%, 5%
and 3% of the voting rights on December 15, 2014 and amounted to 0% of the voting rights (0 voting rights) at this date.
31) On December 17, 2014, Dr. Wolfgang Porsche Holding GmbH, Salzburg, Austria, has notified us in accordance with
article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights
on December 15, 2014 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Dr. Wolfgang Porsche Holding
GmbH in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Dr. Wolfgang Porsche Holding GmbH are held via the following enterprises controlled
by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Wolfgang Porsche GmbH, Grnwald; Familie Porsche Beteiligung GmbH, Grnwald; Porsche Automobil Holding SE,
Stuttgart.

297

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

Q ATA R

We have received the following notification:

(1) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding Luxembourg II S..r.l.,
Luxembourg, Luxembourg, that as per August 26, 2009 Qatar Holding Luxembourg II S..r.l. no longer held directly or
indirectly any financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen
below the threshold of 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial
instruments. If Qatar Holding Luxembourg II S..r.l. had held shares in Volkswagen AG instead of such financial
instruments it would have held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per August 26, 2009.
(2) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding Netherlands B.V., Amsterdam,
The Netherlands, that as per August 26, 2009 Qatar Holding Netherlands B.V. no longer held directly or indirectly any
financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen below the
threshold of 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If
Qatar Holding Netherlands B.V. had held shares in Volkswagen AG instead of such financial instruments it would have
held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per August 26, 2009.

We have received the following notification:

(1) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of the State of Qatar, acting by and through the
Qatar Investment Authority, Doha, Qatar, that its indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of Volkswagen
Aktiengesellschaft (40,440,274 voting rights) as per this date
(i) 6.93% (20,429,274 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to
acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the State of Qatar pursuant to section 22 (1) sentence 1 no. 1 WpHG.
(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen
Aktiengesellschaft (50,149,012 voting rights) as per this date
(i) 3.29% (9,708,738 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to
acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the State of Qatar pursuant to section 22 (1) sentence 1 no. 1 WpHG.
Voting rights that are attributed to the State of Qatar pursuant to lit. (a) and (b) above are held via the following entities
which are controlled by it and whose attributed proportion of voting rights in Volkswagen Aktiengesellschaft amount to 3%
each or more:
(aa) Qatar Investment Authority, Doha, Qatar;
(bb) Qatar Holding LLC, Doha, Qatar;
(cc) Qatar Holding Luxembourg II S..r.l., Luxembourg, Luxembourg;
(dd) Qatar Holding Netherlands B.V., Amsterdam, The Netherlands.

298

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

(2) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of the Qatar Investment Authority, Doha, Qatar,
that its indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of Volkswagen
Aktiengesellschaft (40,440,274 voting rights) as per this date
(i) 6.93% (20,429,274 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to
acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the Qatar Investment Authority pursuant to section 22 (1) sentence 1 no. 1 WpHG.
(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen
Aktiengesellschaft (50,149,012 voting rights) as per this date
(i) 3.29% (9,708,738 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to
acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the Qatar Investment Authority pursuant to section 22 (1) sentence 1 no. 1 WpHG.
Voting rights that are attributed to the Qatar Investment Authority pursuant to lit. (a) and (b) above are held via the
entities as set forth in (1) (bb) through (dd) which are controlled by it and whose attributed proportion of voting rights
in Volkswagen Aktiengesellschaft amount to 3% each or more.
(3) Pursuant to section 21 (1) WpHG we hereby notify for and behalf of Qatar Holding LLC, Doha, Qatar, that its direct and
indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of Volkswagen
Aktiengesellschaft (40,440,274 voting rights) as per this date
(i) 6.93% (20,429,274 voting rights) of which have been obtained by the exercise of financial instruments within
the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to acquire shares in Volkswagen
Aktiengesellschaft, and
(ii) 6.78% (20,011,000 voting rights) of which are attributed to Qatar Holding LLC pursuant to section 22 (1)
sentence 1 no. 1 WpHG.
(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen
Aktiengesellschaft (50,149,012 voting rights) as per this date
(i) 3.29% (9,708,738 voting rights) of which have been obtained by the exercise of financial instruments within
the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to acquire shares in Volkswagen
Aktiengesellschaft, and
(ii) 6.78% (20,011,000 voting rights) of which are attributed to Qatar Holding LLC pursuant to section 22 (1)
sentence 1 no. 1 WpHG.

Voting rights that are attributed to Qatar Holding LLC pursuant to lit. (a) and (b) above are held via the entities as set forth in
(1) (cc) through (dd) which are controlled by it and whose attributed proportion of voting rights in Volkswagen
Aktiengesellschaft amount to 3% each or more.

299

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

We have received the following notification:

(1) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of the State of Qatar, acting by and through the
Qatar Investment Authority, Doha, Qatar, that as per December 18, 2009 the State of Qatar no longer held directly or
indirectly any financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen
below the thresholds of 15%, 10% and 5% of the voting rights of Volkswagen AG if it had held shares instead of those
financial instruments. If the State of Qatar had held shares in Volkswagen AG instead of such financial instruments it
would have held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per December 18, 2009.
(2) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of the Qatar Investment Authority, Doha, Qatar,
that as per December 18, 2009 the Qatar Investment Authority no longer held directly or indirectly any financial
instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen below the thres hold of
15%, 10% and 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If
the Qatar Investment Authority had held shares in Volkswagen AG instead of such financial instruments it would have
held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per December 18, 2009.
(3) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding LLC, Doha, Qatar, that as per
December 18, 2009 Qatar Holding LLC no longer held directly or indirectly any financial instruments that grant the
right to acquire shares in Volkswagen AG and would thus have fallen below the threshold of 15%, 10% and 5% of the
voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If Qatar Holding LLC had
held shares in Volkswagen AG instead of such financial instruments it would have held 0.00 % of the voting rights of
Volkswagen AG (0 voting rights) as per December 18, 2009.
We have received the following notification:
(1) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Luxembourg II S..r.l.,
Luxembourg, Luxembourg, that its indirect voting rights in Volkswagen Aktiengesellschaft exceeded the thresholds of
10% and 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen Aktiengesellschaft
(50,149,012 voting rights) as per this date, all of which are attributed to Qatar Holding Luxembourg II S..r.l. pursuant
to section 22 (1) sentence 1 no.1 WpHG.
Voting rights that are attributed to Qatar Holding Luxembourg II S..r.l. are held via the following entities which are controlled by it and whose attributed proportion of voting rights in Volkswagen Aktiengesellschaft amount to 3% each or more:
(a) Qatar Holding Netherlands B.V., Amsterdam, The Netherlands;
(b) Qatar Holding Germany GmbH, Frankfurt am Main, Germany.
(2) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Netherlands B.V., Amsterdam,
The Netherlands, that its indirect voting rights in Volkswagen Aktiengesellschaft exceeded the thresholds of 10% and
15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen Aktiengesellschaft
(50,149,012 voting rights) as per this date, all of which are attributed to Qatar Holding Luxembourg II S..r.l. pursuant
to section 22 (1) sentence 1 no. 1 WpHG.
Voting rights that are attributed to Qatar Holding Netherlands B.V. are held via the entity as set forth in (1) (b) which is
controlled by it and whose attributed proportion of voting rights in Volkswagen Aktiengesellschaft amounts to 3% or more.
(3) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Germany GmbH, Frankfurt am
Main, Germany, that its direct voting rights in Volkswagen Aktiengesellschaft exceeded the thresholds of 3%, 5%,
10% and 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen Aktiengesellschaft
(50,149,012 voting rights) as per this date.

300

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

STAT E O F L O W E R S A XO N Y

The State of Lower Saxony notified us on January 5, 2015 that it held a total of 59,022,310 ordinary shares as of December
31, 2014. It held 440 VW ordinary shares directly and 59,021,870 ordinary shares indirectly via Hannoversche
Beteiligungsgesellschaft mbH (HanBG), which is owned by the State of Lower Saxony.

45. German Corporate Governance Code

On November 21, 2014, the Board of Management and Supervisory Board of Volkswagen AG issued their declaration of
conformity with the German Corporate Governance Code as required by section 161 of the Aktiengesetz (AktG German
Stock Corporation Act) and made it permanently available to the shareholders of Volkswagen AG on the Companys website
at www.volkswagenag.com/ir.
On November 27, 2014, the Board of Management and Supervisory Board of AUDI AG likewise issued their declaration
of conformity with the German Corporate Governance Code and made it permanently available to the shareholders at
www.audi.com/cgk-declaration.
In December 2014, the Executive Board and Supervisory Board of MAN SE issued their declaration of conformity with
the German Corporate Governance Code as required by section 161 of the AktG and made it permanently available to the
shareholders at www.corporate.man.eu/en.
The Executive and Supervisory Boards of Renk AG issued a declaration of conformity on December 5, 2014 and made it
permanently available to the shareholders at www.renk.biz/corporated-governance.html.

301

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Notes to the Consolidated Financial Statements

46. Remuneration of the Board of Management and the Supervisory Board

2014

2013

Non-performance-related remuneration

11,389,074

11,638,328

Performance-related remuneration

54,166,233

52,444,300

65,555,308

64,082,628

Board of Management remuneration

Supervisory Board remuneration

Fixed remuneration components
Variable remuneration components

808,500

528,671

11,340,950

9,245,859

12,149,450

9,774,530

The non-performance-related remuneration of the Board of Management comprises fixed remuneration and fringe
benefits. In addition to the basic level of remuneration, the fixed remuneration also includes differing levels of remuneration for appointments assumed at Group companies. The fringe benefits result from the grant of noncash benefits and
include in particular the use of operating assets such as company cars and the payment of insurance premiums. Taxes due
on these noncash benefits were mainly borne by Volkswagen AG. The performance-related remuneration comprises a
business performance bonus, which relates to business performance in the reporting period and in the preceding year,
and, since 2010, a Long-Term Incentive (LTI) plan, which is based on the reporting period and the previous three fiscal
years. Members of the Board of Management can also be awarded bonuses that reflect their individual performance.
On December 31, 2014, the pension provisions for members of the Board of Management amounted to 138,046,434
(previous year: 107,676,518). Current pensions are index-linked in accordance with the index-linking of the highest
collectively agreed salary insofar as the application of section 16 of the Gesetz zur Verbesserung der betrieblichen
Altersversorgung (BetrAVG German Company Pension Act) does not lead to a larger increase. Members of the Board of
Management with contracts entered into on or after January 1, 2010 are entitled to payment of their normal remuneration
for six to twelve months in the event of illness. Contracts entered into before that date grant remuneration for six months.
In the event of disability, they are entitled to the retirement pension. Surviving dependents receive a widows pension of
66 2/3% and a 20% orphans pension per child based on the pension of the former member of the Board of Management.
Retired members of the Board of Management and their surviving dependents received 22,792,616 (previous year:
9,977,972). This includes the amounts agreed to be paid to Dr. Macht in connection with his departure from the Board of
Management as of July 31, 2014. For the period from August 1, 2014 to September 30, 2015, he was granted nonperformance-related remuneration of 1,270,575 and performance-related remuneration of 5,976,716. The subsequent bridging allowance, less any remuneration from third parties, is that for the period after he reaches the age of 63.
Provisions for pensions for this group of people were recognized in the amount of 165,668,945 (previous year:
140,165,675).
Interest-free advances in the total amount of 480,000 (previous year: 480,000) have been granted to members of the
Board of Management. The advances will be set off against performance-related remuneration in the following year.
The individual remuneration of the members of the Board of Management and the Supervisory Board is explained in
the remuneration report in the management report (see page 60). A comprehensive assessment of the individual bonus
components of the LTI is also to be found there.

302

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Responsibility Statement

Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial
statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group
management report includes a fair review of the development and performance of the business and the position of the
Group, together with a description of the material opportunities and risks associated with the expected development of the
Group.

Wolfsburg, February 17, 2015

Volkswagen Aktiengesellschaft
The Board of Management

Martin Winterkorn

Francisco Javier Garcia Sanz

Jochem Heizmann

Christian Klingler

Horst Neumann

Leif stling

Hans Dieter Ptsch

Andreas Renschler

Rupert Stadler

303

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Auditors Report

Auditors Report
On completion of our audit, we issued the following unqualified auditors report dated February 18, 2015. This report was
originally prepared in German. In case of ambiguities the German version takes precedence:
Auditors Report
We have audited the consolidated financial statements prepared by the VOLKSWAGEN AKTIENGESELLSCHAFT ,
Wolfsburg, comprising income statement and statement of comprehensive income, the balance sheet, the statement of
changes in equity, cash flow statement and the notes to the consolidated financial statements, together with the group
management report, which is combined with the management report of the VOLKSWAGEN AKTIENGESELLSCHAFT ,
Wolfsburg, for the business year from January 1 to December 31, 2014. The preparation of the consolidated financial
statements and the combined management report in accordance with the IFRSs, as adopted by the EU, and the additional
requirements of German commercial law pursuant to (Article) 315a Abs. (paragraph) 1 HGB ("Handelsgesetzbuch":
German Commercial Code) are the responsibility of the parent Company's Board of Management. Our responsibility is to
express an opinion on the consolidated financial statements and the combined management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with 317 HGB and German generally
accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprfer (Institute of
Public Auditors in Germany) (IDW). Those standards require that we plan and perform the audit such that misstatements
materially affecting the presentation of the net assets, financial position and results of operations in the consolidated
financial statements in accordance with the applicable financial reporting framework and in the combined management
report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the
disclosures in the consolidated financial statements and the combined management report are examined primarily on a
test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities
included in consolidation, the determination of the entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by the Companys Board of Management, as well as evaluating
the overall presentation of the consolidated financial statements and the combined management report. We believe that
our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.

304

C O N S O L I D AT E D F I N A N C I A L STAT E M E N T S

Auditors Report

In our opinion based on the findings of our audit the consolidated financial statements comply with the IFRSs as adopted
by the EU, and the additional requirements of German commercial law pursuant to 315a Abs. 1 HGB and give a true and
fair view of the net assets, financial position and results of operations of the Group in accordance with these provisions.
The combined management report is consistent with the consolidated financial statements and as a whole provides a
suitable view of the Group's position and suitably presents the opportunities and risks of future development.

Hanover, February 18, 2015

PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft

Norbert Winkeljohann
Wirtschaftsprfer
(German Public Auditor)

Frank Hbner
Wirtschaftsprfer
(German Public Auditor)

305

A D D I T I O N A L I N F O R M AT I O N

Glossary

Glossary
Selected terms at a glance

Hedging instruments

North American Free Trade Agreement (NAFTA)

Hedging transactions used in risk management, for

Agreement signed by Canada, Mexico and the United

Association of Southeast Asian Nations (ASEAN)

example to hedge interest rate and exchange rate

States establishing a free trade zone in North America

An international organization of Southeast Asian

risks.

in 1994.

Hybrid drive

Penetration rate for financial services

Drive combining two different types of engine and

The ratio of the leasing and financing business to total

Big Data

energy storage system (usually an internal combus-

deliveries.

Big data is a term used to describe new ways of

tion engine and an electric motor).

nations with political, economic and cultural aims

that has been in existence since August 8, 1967.

analyzing and evaluating data volumes that are too

Plug-in-hybrid

vast and too complex to be processed using manual or

Hybrid notes

Next-generation

conventional methods.

Hybrid notes issued by Volkswagen are classified in

electric vehicles (PHEVs) have a larger battery with a

hybrid

vehicles.

Plug-in

hybrid

their entirety as equity. The issuer has call options at

correspondingly higher capacity that can be charged

Carbon Disclosure Project (CDP)

defined dates during their perpetual maturities. They

via the combustion engine, the brake system, or an elec-

Once a year, the CDP, a non-profit organization,

pay a fixed coupon until the first possible call date,

trical outlet. This increases the range of the vehicle.

collects corporate data on e.g. greenhouse gas emis-

followed by a variable rate depending on their terms

sions and climate change risks on behalf of investors.

and conditions.

Compliance

Industry 4.0

credit quality. Ratings are expressed by means of

Adherence to statutory provisions, internal company

Describes the fourth industrial revolution and the

rating classes, which are defined differently by the

policies and ethical principles.

systematic development of real-time and intelligent

individual rating agencies.

Rating
Systematic evaluation of companies in terms of their

networks between people, objects and systems,

Compressed Natural Gas (CNG)

exploiting all of the opportunities of information

Recuperation

Burning this compressed natural gas releases approx-

technology along the entire value added chain.

Recovery of kinetic energy by using an electric motor

imately 25% less CO2 than petrol because of its low

Intelligent machines, inventory systems and operating

as a generator, for example in the drivetrain.

carbon and high energy content.

equipment that independently exchange information,

trigger actions and control each other will be integrated

Turntable concept

Connectivity

into production and logistics at a technical level. This

Concept of flexible manufacturing enabling the

Describes the ability of vehicles to constantly com-

offers tremendous versatility, efficient resource uti-

production of different models in variable daily

municate with e.g. other vehicles, traffic lights, or the

lization, ergonomics and the integration of customers

volumes within a single plant, as well as offering the

workshop, and connect to consumer electronics.

and business partners in operational processes

facility to vary daily production volumes of one model

throughout the entire value chain.

between two or more plants.

International term for responsible corporate manage-

Liquefied Natural Gas (LNG)

Vocational groups

ment and supervision driven by long-term value added.

LNG is needed so that natural gas engines can be used

For example, electronics, logistics, marketing, or

in long-distance trucks and buses, since this is the only

finance. A new teaching and learning culture is

way of achieving the required energy density.

gradually being established by promoting training in

Corporate Governance

Direct Shift Gearbox (DSG)

Gearbox that consists of two gearboxes with a dual

the vocational groups. The specialists are actively

clutch and so combines the agility, driving pleasure

Modular Transverse Toolkit (MQB)

involved in the teaching process by passing on their

and low consumption levels of a manual gearbox with

As an extension of the modular strategy, this platform

skills and knowledge to their colleagues.

the comfort of an automatic.

can be deployed in vehicles whose architecture

permits a transverse arrangement of the engine

Hedge accounting

components. The modular perspective enables high

Presentation of hedges in the balance sheet with the

synergies to be achieved between the vehicles in the

aim of compensating offsetting gains and losses from

Volkswagen Passenger Cars, Volkswagen Commercial

hedged items and hedging instruments within the

Vehicles, Audi, SEAT and KODA brands.

same period economically and in the financial statements.

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A D D I T I O N A L I N F O R M AT I O N

Index

Index
A

Accounting policies

201 ff

Annual General Meeting

93

General economic development

76 f, 152, 163

Global Compact

119

Group structure

21, 52 f, 99

135, 167 f

R
Ratings

Balance sheet

105 ff, 114 f, 182 f, 222 ff

Basis of consolidation

190 ff

Board of Management

12 ff, 16 f, 70

Brands

21 ff

I
IFRSs

188 f

Income statement

100 ff, 114, 179, 213 ff

Information technology

141, 168

Investment planning

Cash flow statement

103 ff, 186, 258

CO2 emissions

120 f, 144 ff, 168 ff

Consolidation methods

157 f

K
Key figures

Corporate Governance

51
9 f, 54 ff, 301

Currency

Declaration of conformity

9 f, 54 f, 301

Deliveries

92

Dividend proposal

115, 236

170 f, 269

92, 94, 218 f

Research and development

151, 272

116, 120 ff, 165

Return on investment (ROI) and

value contribution

112 f, 158, 267 f

Risk management

160 ff

Segment reporting
Shareholders

Shares

Market development

Statement of comprehensive income

22 f, 77 ff, 153 ff, 163 ff

Models

81 ff, 155 f

Strategy
Summaries
Supervisory Board

N
Nonfinancial key performance indicators

118 ff

Sustainability

133 ff, 156, 167

99, 210 ff
74, 92, 276 ff
74 f, 90 ff, 94 ff
180 f
49
89, 110, 159, 173
7 ff, 71 ff, 74 f
118 ff

Earnings per share

Report on post-balance sheet date events

Sales and marketing

Litigation

U2, 82 ff

Dividend policy, yield

59 ff, 302

S
L

78, 155, 171 f, 200

96 f

Remuneration

U1, 23

199

Core performance indicators

97 f, 172

Refinancing

Employees

Quality assurance

Orders received

39, 41, 87

Target-performance comparison

89

88, 116, 136 ff, 156, 168, 271

Environmental protection
Equity

116 f, 144 ff, 168 ff

184 f, 235 ff

P
Procurement

125 ff, 166

Production
F
Financial data, overview
Financial risk management

109, 111

25 ff, 88, 116, 130 ff, 166

Proposal on the appropriation of net profit

115

Prospects

174

102 f, 171 f, 259 ff

307

Value added

110

Vehicle sales

23, 88, 116

on

n o m ion
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Phone + 49 (0) 5361 9-0
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This annual report is published in nglish and German.
Both versions of the report are available on the
Internet at www.volkswagenag.com/ir.
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I N A N C I A L C A L E N DA R

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and Investor Conference, Berlin

A
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Moving diversity

The enclosed poster provides a snapshot of the

Volkswagen Group s wide range of brands, models and markets.

Navigator
For more facts and figures about
the Volkswagen Group, please visit our interactive Navigator app
http //navigator.volkswagenag.com

vo l k s wagen a k t ien gesel l s ch a f t

Momentum 2014

moving
progress
2014
mom en t u m

mo men t u m 20 14

The automobile is on the threshold of the biggest transition in

its history. Peoples expectations of mobility are changing and becoming
increasingly diverse. A major factor driving this trend is the
digitization of all areas of life. As a result, automobiles are becoming
a permanent feature of a digitally networked world.
We see this transition as an opportunity and we intend to play
an active part in shaping change. Fully networked vehicles mean greater
safety, comfort and environmental compatibility. Digitization is
opening up entirely new opportunities in our factories too, and creating
intelligent solutions spanning all aspects of the automobile.
We have begun our journey into tomorrows world of mobility; on board are
our expertise, our curiosity and our strong momentum. Our eyes
are firmly fixed on our goal, namely moving progress for our customers,
for our Company, for our industry.
Join us on this journey into the digital future of the automobile.

ENTU

Contents

e w o l d n m o t on

As

ts

nd

tes

e d s o l t on

e ence
e

nde st nd

THE NE X T GENER ATI O N

R AIN RO O
PEO PLE

ILL AL

AYS BE PEO PLE

ct

THE UTURE IS LI

THE START O A OURNE Y

THE

O RLD IN

OTI O N

UPDATE
THE NET

OR
O BIT S AND BY TES
IN THE A ST L ANE
HU

ANS
S

ACHINES

ART DATA

A SHARED SO LUTI O N
THE A SSISTANT S

ITLESS

AN OTHER STEP O R

ARD

ENTU

U N D E R S TA N D

1
Peoples expectations of mobility are
changing and they vary from
region to region. Over 44,000 researchers
and developers in the Volkswagen
Group are working on understanding
and meeting these highly diverse
needs. The networked automobile is
one major focus. It makes driving
even safer, more comfortable and more
environmentally friendly.

ENTU

U N D E R S TA N D

The start of a ourney

e st t
o ne

The Port of mden, October 2014 the new Volkswagen Passat 1

starts its ourney to its first overseas customers.
On board are innovative features for a digital lifestyle.

ENTU

U N D E R S TA N D

The start of a ourney

It is one of the first. Its journey starts at dawn, and it has a long way to go. The destination is
Japan. The new Passat that is about to be loaded onto a car carrier vessel is one of
about 5,000 Volkswagen Group vehicles to leave the port of Emden for the world every day.
T E X T Johannes Winterhagen

P H O T O G R A P H Y Marcus Pietrek

ome of the cars, waiting for their ship to arrive, have a long journey to North
America or the Far East ahead of them. Others set out on a short trip across the English
Channel. What they all have in common is that they are from the Volkswagen Groups
plants in Central Europe. And that they stand for the Companys success in automotive markets around the world. The port of Emden is growing steadily to keep pace. In
2007, over one million vehicles were loaded there for the first time, a figure that has
since grown by 30 percent.
For Manfred de Vries, who is both Head of Automotive Transfer and Dispatch at the Emden
plant and Managing Director at Autoport GmbH (in which Volkswagen has a 33 percent
interest), the success is first and foremost a logistical challenge. The aim is to load the
vehicles onto the right ships as efficiently as possible and with a minimum of damage. To
minimize the environmental impact, he also ensures that the vehicles are moved as little
as possi ble in the process. Despite his professional attitude, the departure of the new
Passat is a big moment for him too. I am proud of the fact that we are the gateway to the
world for such an innovative model.
The Passat the eighth generation of the model has a range of new technical features
on board, starting with the Active Info Display with integrated tachometer and speedometer. The freely programmable, fully digital display shows the route recommended
by the navigation system in razor-sharp clarity for easy readability, for example. The
infotainment system, which features an 8-inch center display, also packs more functions
than ever before. Faster processors, new software and simple smartphone integration
seamlessly connect the vehicle with the digital world.
The Passats drives are also future-ready and feature particularly impressive fuel economy.
The new Passat will also be the first of its class to be available with an optional plug-in
hybrid drive system in the future. This offers a purely electric range of up to 50 kilometers.
The Passat GTE 2 is also equipped with a 1.4 liter TSI engine for longer distances, giving
it a total range of over 1,000 kilometers. It emits only 37 grams of CO2 per kilometer in
the standard European driving cycle.
Taking responsibility for an intact environment and connecting the modern, digital
lifestyle with driving the eighth generation of the Passat is a pioneer on the road to
future mobility. A journey that the entire Volkswagen Group has started.
1 Volkswagen Passat fuel consumption in l/100 km combined from 1.6 to 5.4; CO 2 emissions in g/km combined from
37 to 140 (including values from Volkswagen Passat GTE).
2 Volkswagen Passat GTE fuel consumption in l/100 km combined from 1.6 to 1.7; CO 2 emissions in g/km combined from
37 to 39 (provisional values).

m ll on e cles
delivered by the Volkswagen Group
in 2014 reaching the defined trategy 2018
target four years earlier than planned.

ENTU

U N D E R S TA N D

The world in motion

e wo ld
n mot on
Life is movement. Even so, how people define individual mobility and
what they expect of it vary from region to region. With its
wide range of brands, models and technologies, the Volkswagen Group
is keeping people on the move all around the world.
T E X T Laurin Paschek

P H O T O G R A P H Y Volkswagen AG

Campa a, Argentina
Coach Carlos Mara Ulloa (62) is a legend in the world of polo. Known as Polito, he trains around 60 horses
on his farm every year. He only has a few months to turn a pony into a real Polo Argentino and it is
intensive work. To get around, he drives a Volkswagen Amarok 1. With this reliable and cost-effective solution,
he can transport equipment for his many trainees over the dusty Pampas tracks.

ENTU

U N D E R S TA N D

The world in motion

Wolfsburg, Germany
Alina Ivanowa (32) used to be on the road for business almost every week. The highway was her second home.
Today, the mother of two children works part-time. She drives to the nearby office in the morning. In the early
afternoon, she picks up the kids from school and does the shopping. Thanks to her Golf GTE 2 , her day-to-day driving
is all-electric and emission-free. And an economical TSI petrol engine combined with the electric
motor provide the range needed for the whole family to visit friends who live further afield on the weekend.

an Francisco,

When Jrg Schlinkheider (44) sits in morning traffic in his Audi A7 Sportback on highway 101, he is not still on his way
to the office like most other road users. He is already at work. The Audi engineer of the Volkswagen Group of
America is testing a function that could be a great help on congested highways in future. His vehicle moves piloted through
the slow traffic independently and accurately and without his intervention. And although Schlinkheider
always has a close eye on handling, once the technology goes into series production in the next Audi A8, the assistance
system will help drivers to reach their destination comfortably and safely.

ENTU

U N D E R S TA N D

The world in motion

eoul, outh Korea

Soo-Hee Park (28) loves the many facets of life in Seoul, home to 26 million people. While on
her morning commute, the office worker often arranges to meet friends later on. After
clocking off for the day, they visit the Namdaemun Market for something spicy to eat, or a tea
house in the Insadong district. Soo-Hee then takes the subway far out of the city and
climbs into her Tiguan3. She lives in her parents village, a long way from any train line. Its
secluded location gives her the peace and quiet she needs to recharge for the next day.

N rburgring, Germany
On the first Saturday of every month, winegrower Martin Stein (37) clocks lap after lap of the Nrburgring in his
SEAT Leon Cupra4. Cruising the legendary racetrack is his passion. Here, the motorsport fan can experience
speed and g-force. This is an important counterpoint to his life during the week his tractor usually only travels at
walking pace when he works in the familys nearby vineyards.

1 Volkswagen Amarok fuel consumption in l/100 km combined from 6.8 to 8.5; CO 2 emissions in g/km combined from 179 to 224.
2 Volkswagen Golf GTE fuel consumption in l/100 km combined from 1.5 to 1.7; energy consumption in kWh/100 km combined 11.4 to 12.4;
CO 2 emissions in g/km combined from 35 to 39.
3 Volkswagen Tiguan fuel consumption in l/100 km combined from 5.3 to 8.5; CO 2 emissions in g/km combined from 138 to 198.
4 SEAT Leon Cupra fuel consumption in l/100 km combined from 6.4 to 6.6; CO 2 emissions in g/km combined from 149 to 154.

ENTU

U N D E R S TA N D

pdate

d te
50 control devices, partial autopilot for navigating congestion, always on via the Internet
the modern car has become a computer on wheels. Now digitization is gathering speed
again and changing the automotive industry from the ground up. Prof. Dr. Martin Winterkorn
considers the changes that lie ahead and how we should approach them.
P H O T O G R A P H Y Hartmut Ngele

ENTU

U N D E R S TA N D

pdate

Our world is changing at a breathtaking pace. Globalization, rapid technological evolution and the Internet are the driv ing
forces behind this change. Digitization is revolutionizing our lives
in the same radical way as the Industrial Revolution did 200 years
ago. Computers, smartphones and robots are completely redefin ing how we communicate, shop and spend our free time, and what our
day-to-day life at the office and in the factory looks like. Digitization
is of course also changing the way we shape our mobility.
The car has entered a new era: the shift in societys values and strict
CO 2 laws around the world are the impetus for increasingly more
economical drive systems, e-mobility, lightweight construction and
energy-efficient factories. Urbanization means a need for intelligent new transportation concepts. Constant growth in computing
power, fast data networks and cheap memory are what people need
to be always on. Cars are becoming computers on wheels: engine
and chassis management, driver assistance systems, navigation,
communications, infotainment systems and automated driving are
developing at breakneck speed.
Our ambition is to be the engine behind this change. We want to
move progress. The Volkswagen Group and the entire automotive
industry are not starting from scratch. We have been one of the
pioneers of digitization for a long time but now we are stepping up
the pace again. We are bringing the digital world to our vehicles
and connecting in-vehicle sensors with our data centers. The vehicle

fleet will become an intelligent swarm, our basis for developing

new mobility services. Real-time data is also needed for partially
automated driving and the intelligent navigation of traffic in city
centers or on motorways.
Our factories are also in line for the next major automation push.
Fully networked manufacturing under Industry 4.0 is beginning to
take shape. Machines are relieving employees of monotonous,
non-ergonomic tasks. Robots are moving out of their protective
cages and will work side by side or even hand in hand with people
in the future.
The Internet has become the most important showroom in automotive
sales. Now the focus is on seamlessly connecting the virtual, digital
world with the real one. Using big data intelligently also allows us to
develop new software solutions and service offerings for cars that
give our customers genuine added value and open up additional business opportunities for our Company.
A brave new digital automotive world? There are of course fundamental questions that still need to be answered: will the factories of

We can and must bring

the digital and the
mobile worlds together.
Prof. Dr. Martin Winterkorn

tomorrow be empty of people? Is the traffic infrastructure prepared

for the opportunities the digital world has to offer? And how can
we protect sensitive customer information from misuse? We are
aware of our responsibilities and are addressing all of these issues
carefully. At the same time, I urge you to look not just at the risks,
but more particularly at the opportunities that digitization presents.
Not only will driving become more comfortable and safer for peo ple; at the same time, we will also take the pressure off the environment thanks to optimum utilization of our resources. Exciting opportunities for new technologies and business ideas are emerging
for industry, which will bring growth and prosperity.
Despite all the challenges, I am convinced of one thing: we can and
must bring the digital and the mobile worlds together. Digitization
is therefore one of the major components of our Group-wide Future
Tracks program, which we launched in spring 2014. On our road
toward the new digital world of mobility, there is one thing that we
cannot neglect, and that is to bring people our customers, partners
and employees with us. Focus, safety and security, and trust these
values are and will remain the foundation for technological progress.

ENTU

U N D E R S TA N D

The network

e netwo k
The car of the future is part of the Internet of Things, where machines exchange information
with each other. Engineers and computer scientists at Volkswagen are working on
networking technologies that make driving more comfortable, safer and kinder to the
environment. And they themselves are also part of a Group-wide network.
T E X T Johannes Winterhagen

P H O T O G R A P H Y Hartmut Ngele

Cars in ad hoc networks warn

each other of dangers ahead

Traffic lights and road signs

communicate with the vehicle

martphones and vehicle infotainment systems are converging

Cars and homes share

information and energy

Access to the entire Internet from the

vehicle via secure Volkswagen servers

GP positioning is becoming

even more accurate

ENTU

U N D E R S TA N D

The network

The door closes with a satisfying clunk. Fasten the seatbelt,

insert the ignition key, turn on the engine, engage gear and
off you go. Thats how most car journeys used to start at the beginning of this century. One or two more movements have been
added in the meantime: take your smartphone out of your pocket,
insert it in a holder or simply place it in the central console. And
program the navigation system, of course even when the driver
knows how to get to the destination, just in case there is a traffic
holdup somewhere. Only then is the engine started more and
more often nowadays, this is done by simply pressing a button.
Smartphones have changed peoples day-to-day lives. In 2013,
some 40 percent of all Germans owned a smartphone, and just
one year later that figure had risen to 50 percent and it is still
growing. In the introduction to his famous essay The Computer
for the 21st Century, published in 1991, computer scientist and
internet visionary Mark Weiser wrote: The most profound technologies are those that disappear. They weave themselves into
the fabric of everyday life until they are indistinguishable from
it. The smartphone has undoubtedly developed into this type of
technology, with far-reaching consequences. People who are used
to being always on dont want to miss out when they are in a car.
Despite the profound nature of this change, it comes as no surprise
to Volkmar Tanneberger. With a doctorate in engineering, he
is head of Group-wide electrical and electronic development at
Volkswagen. He was already working on networking 20 years ago.

Networking meant something different in those days, explains

Tanneberger. Initially it meant networking the individual control devices inside a vehicle to ensure the best possible interplay
between engine, transmission and chassis. That meant, for example, preventing the wheels from spinning when starting the car
on snow by reducing engine torque and activating the brake at
the same time.
These functions are still carefully developed for each new model
in the Volkswagen Group today. But nowadays Tanneberger turns
his attention to a different type of networking: linking the vehicle
to its surrounding environment. By 2020, we expect all new cars
supplied by us to have an Internet connection. The car with its
own IP address will become part of the Internet of Things, opening
the door to continuous information exchange. Up-to-the-minute
information about traffic flows is fed into the navigation system.
A driver looking for a parking space can be directed to a car parking lot with free places. Many other Internet-based functions designed to make driving easier are under development. For example, future navigation systems will be able to indicate the chances
of finding a parking space in nearby streets.
It is not just the car of the future itself which is intelligent and
networked; it will also interact closely with the drivers smartphone. Quite simply, our customers expect to be able to use certain functions of their mobile devices in their car too, says
Tanneberger. Volkswagen is therefore working closely with Apple

Our customers expect to be able

to use certain functions of
their mobile devices in their car too.
Dr. Volkmar Tanneberger, Head of lectrical and lectronic Development, Volkswagen Group

ENTU

U N D E R S TA N D

The network

Our own infotainment toolkit enables

us to put together the best
hardware and software components.
Dr. Riclef chmidt-Clausen, Managing Director e.solutions

and Google on communication standards between the smartphone operating systems and the vehicle infotainment systems. This
means that certified apps can be shown on the central console
display and used safely. The first cars with these features will appear in 2015. In addition, the MirrorLink standard makes this
type of communication possible independently of the phone operating system. It is already available today in the Volkswagen Polo1
and the KODA Fabia 2 , among other vehicles.
The convergence of automotive and entertainment electronics
presents Volkswagens developers with an enormous challenge.
Whereas a vehicles lifetime is around seven years, new smartphones come onto the market every year and their operating systems are constantly being updated. Processor capacity, the
most important technical requirement for fast calculations and
ever more sophisticated graphics, is increasing all the time.
The Volkswagen Groups response to short IT innovation cycles
is the Modular Infotainment System (Modularer Infotainment
Baukasten MIB). This is being developed by Audi and Volkswagen
and will feature in all of the Groups brands in the future.
Audi intends to prove that its Vorsprung durch Technik credentials also apply to integrating the Internet into its cars, and so it
is responsible for developing the high and premium versions of
the MIB. In partnership with the Finnish corporation Elektrobit,
Audi already established a company called e.solutions to develop
infotainment services several years ago. Managing Director
Dr. Riclef Schmidt-Clausen explains the motivation behind it:

Developing our own infotainment toolkit enables us to put together the best hardware and software components. For that reason,
the operating system, functions and graphical user interface are
kept systematically separate from each other in the MIB software.
The modular principle means that individual program components
can be combined and adapted to a particular vehicle model.
We develop in-house those components that affect customer
perception, says Schmidt-Clausen. That includes the user interface in particular; programming this accounts for almost half
the code. Here too, the actual graphics are kept separate from the
functions i.e. what happens when the driver gives a particular
command. This is why the infotainment toolkit can be used by different Group brands. The buttons and screen display may look
very different, but the same state-of-the-art computer technology
is hidden underneath.
The MIB is being installed in more and more Group models. To
do that, the software must be adapted to each countrys particular
version of the MIB , which can vary not only in terms of language,
but also user philosophy. A modern infotainment system is made
up of over 2,000 different screen displays and over twelve million
lines of software code, explains Schmidt-Clausen. We are only
able to cope with this level of complexity because a majority of
the programs can be used over and over. Nevertheless, every single
version is thoroughly tested before being released for series
production.

ENTU

U N D E R S TA N D

The network

The MIB s hardware design is also modular. The basic idea is to

divide hardware into two assemblies. One comprises components
that develop more gradually, such as amplifiers or vehicle networking. The other is a high-performance circuit board fitted with
the fastest available processors. This is updated with the latest
state-of-the-art technology without having to redesign the whole
device. As a result, a customer purchasing a new car always gets
the maximum processing capacity available.
Audi is going one step further by producing its very first tablet
developed in-house. It gives back seat passengers a mobile entertainment device that is fully networked with the vehicle and in
addition uses a Wi-Fi hotspot to access the Internet from inside
the car. Schmidt-Clausen proudly shows his visitors a prototype.
Turn it towards the light. Theres no reflection. But the matt
screen mounted in its milled aluminum case is not the only thing
that distinguishes the Audi tablet from other electronic entertainment systems on the market. The Smart Display must meet
the same safety standards as all the vehicles other interior
components. This means that the screen glass cannot shatter
if there is an accident.
Peter Behrendt, Managing Director of Volkswagen Infotainment
GmbH, is also working on networked vehicles. In the middle of
2014, Volkswagen took over Blackberrys European development
center located on the Ruhr University campus in Bochum, Germany. The experienced engineer who used to be responsible for

manufacturing cables and automobile electrical systems, among

other things, enjoys surprising his developer colleagues. An automobile is really just another mobile device, he says, adding
after a pause, At least, thats what my 16-year-old nephew thinks.
For the car to remain attractive to future generations of customers, it will have to become an internet node and act as a data
traffic interface.
Volkswagen is also expanding its capacity for developing infotainment and networking elsewhere in Berlin, for example, at
the Groups Carmeq subsidiary, which is also Behrendts responsibility. Berlin is a very attractive place for us to recruit creative
young people not just to expand capacity, but also to attract
the very best experts. A small team at Carmeq, for example, is working on a new form of voice-operated control system that does
away with the need for the user to spend hours learning the commands. Engineers call this technology natural language voice
control. The driver speaks to the vehicle as if it were a person. The
best thing about using this in a car is that functions that would
otherwise require several clicks through the menu can be called
up directly. No other technology to date has enabled people to
use infotainment systems with so little distraction, says Behrendt.
For example, the driver could simply say, Find me the cheapest
petrol station round here and the result is read out by the computers voice. If the driver accepts the recommendation, the
navigation system gives directions for the shortest route to get
there.

An automobile is really ust another

mobile device. At least, that s
what my 16-year-old nephew thinks.
Peter Behrendt, Managing Director Volkswagen Infotainment GmbH

ENTU

U N D E R S TA N D

The network

We publish a new version of

M A N TeleMatics every six months.
Dr. Hans Welfers, Head of lectronics Development at M A N Truck & Bus

Experts anticipate that, in the near future, more and more

search functions will be replaced by predictive algorithms. This
means that drivers will no longer need to actively call up a particular function; the car will automatically make suggestions
about what to do next. For example, the onboard computer
will recognize when there is not enough fuel in the tank to get
the vehicle to its destination. If a driver has always stopped
at petrol stations with the lowest fuel prices, the computer can
now suggest the most appropriate fuel stop it is constantly
online, after all, with up-to-the-minute information about petrol pump prices. These functions will only be effective if the
vehicle receives constantly updated information from a server
that is approved and monitored by Volkswagen.
Constant data exchange between vehicles and their infrastructure
is already part of normal daily life for Dr. Hans Welfers, Head
of Electronics Development at MA N Truck & Bus. This is because
commercial vehicle buyers have one concern above all others:
operating costs. Competition between freight forwarding companies is tough and globalization is making it even tougher. Reducing driving times, fuel consumption and maintenance to a
minimum is therefore a top priority. This is where MA N s telematics application comes in. The latest version was one of the highlights of the IA A Commercial Vehicles 2014 motor show. It con sists of modular software and a sender-receiver module installed
in the vehicle. The module collects all the relevant data while
the vehicle is in operation not just speed, geographical location
and consumption, but also a lot of technical information about
the state of the vehicle from air pressure in the tires to wear and
tear of the brake pads.
This information is worth a fortune to the fleet operator. Replacing
worn parts such as brake pads or tires can be scheduled in advance for example, on days when the fleet is not being used to full
capacity. MAN provides a service data portal as part of its telematics solution to ensure that the operator is alerted when routine
maintenance is due and can plan accordingly. Analysis of driverrelated operating data can lead to even greater savings. Drivers
whose average fuel consumption is higher than their colleagues

can be contacted and, if necessary, offered extra training. In

trials with pilot customers we were able to show that, by analyzing
driver behavior, you can reduce consumption by approximately
ten percent, explains Welfers.
The hardware and a basic version of the telematics software are already installed in many of MAN s series vehicles. The freight company can add further modules to the system such as a program
to record driving and rest periods. Apps and office software are
developed in tandem between external service providers and MA N s
electronics development teams. This close collaboration between
vehicle electronics specialists and software experts reduces development times considerably. We publish a new version of MA N
TeleMatics every six months, reports Dr. Welfers. His colleagues
from the passenger car departments in Ingolstadt and Wolfsburg
are impressed. MAN s and Scanias technical solutions are so
advanced that we can learn a lot from them, says Tanneberger.
Volkswagens development network thus encompasses not only locations all over the world, but also applications from the Volkswagen
up!3 through to 40-ton trucks. Even though over 2,500 electronics
experts and computer scientists are working on the car of the future, the Group has no intention of developing everything on its
own. We need strong partnerships with universities and other
companies, from start-ups to large IT groups, Tanneberger comments. Because strong networks are the only way to develop networked technology.
1 Volkswagen Polo fuel consumption in l/100 km combined from 3.1 to 5.1; CO 2 emissions
in g/km combined from 82 to 115.
2 KODA Fabia fuel consumption in l/100 km combined from 3.4 to 4.8; CO 2 emissions in g/km
combined from 88 to 110.
3 Volkswagen up! fuel consumption in l/100 km combined from 4.1 to 4.7; energy consumption
in kWh/100 km combined 11.7; gas in kg/100 km combined 2.9; CO 2 emissions in g/km
combined from 0 to 109.

ENTU

AC T

2
The digitization of all aspects of
life offers a tremendous opportunity
to combine environmentally responsible
mobility with the pure joy of driving.
That is why the Volkswagen Group is
working on new ideas and putting
them boldly into practice such as the
electrification of drive systems, intelligent analysis of big data, or new traffic
solutions for the worlds megacities.

ENTU

AC T

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The way a Porsche performs is becoming increasingly dependent on its
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software which is why the sports car brand has had its own
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software
development department since 2001. The departments work
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not
only
helps Porsche clock up record times on the racing track;
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it also optimizes energy management in electrified vehicles throughout
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the whole Volkswagen Group.
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T E X T Johannes Winterhagen
P H O T O G R A P H Y Georg Roske
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ENTU

AC T

Of bits and bytes

minutes the Porsche 918 pyder s world

record time round the N rburgring North Loop

even minutes a time seemingly cast in stone. A small

team of Porsche engineers worked for months to beat it. And then,
one clear September morning, shortly before the official world
premiere of the 918 Spyder1, they did it. Racing driver Marc Lieb
steered the hybrid super sports car round the legendary Nrburgring North Loop in 6:57 minutes. A world record!
The cars uncompromisingly sporty chassis, adaptive aerodynamics
and massive system power output of 652 kW (887 PS) were not
the only factors behind this breakthrough it was also due to the
perfect interplay of all the drive components. Two electric motors,
one on the front axle and one on the rear axle, plus a racing V8 petrol engine, work hand in hand in the 918 Spyder. All the components are coordinated by a hybrid manager software that is
an integral part of the engine management system. It calculates
the most efficient driving strategy for each journey, so that drivers
reach their destination using the least possible amount of energy.
As with all Volkswagen Group plug-in hybrid vehicles, the 918 Spyder
starts off in purely electric mode to cover shorter distances using
electric power alone. If the battery begins to fade or the driver

wants to keep it charged, the car switches to hybrid mode. The

main task of the electric motors is now to boost the efficiency of
the combustion engine. Three additional driving programs can
be activated at the touch of a button to switch to sporty mode on
the road or the race track. Ambitious drivers especially love
the Hot Lap mode, which stretches electric motor and battery to
the very limits of what is technically possible. The resulting trac tive power is enormous.
Operating five different driving programs, each with its own
unique character, is only possible with the help of bits and bytes,
which is where Porsches software development department
comes in. We are not trying to do everything ourselves, explains
Dr. Rolf Zller, who was responsible for setting up the department in the Weissach development center back in 2001 and is
still its director today. We concentrate on developing in-house
those functions that create the typical Porsche driving experience
amongst which he includes the gearshift strategy for the dual
clutch (Porsche Doppelkupplung PDK ). We are focusing particularly on the when and how of gear shifting.

We develop in-house those

functions that create
the typical Porsche driving
experience.
Dr. Rolf ller, Managing Director oftware Development, Porsche

ENTU

AC T

Of bits and bytes

With our modular

software we can
concentrate fully on
implementing
innovative ideas.
we Michael, Head of lectrical and lectronic Development, Porsche

3.1
liters of fuel and 12.7 kilowatt-hours of electricity:
the Porsche 918 Spyders standardized consumption over 100 kilometers

because modern software is always developed with a modular

design so as to maximize its use in different series across all the
brands. That way we avoid duplication and can concentrate fully
on implementing innovative ideas, explains Uwe Michael, who is
responsible for electrical and electronic development at Porsche.
He cites the example of a software module that calculates how much
battery power is left. Having constant, reliable information about
how much longer the battery will last is crucial for drivers of electrified vehicles. The program making that calc ulation whether
its in a Volkswagen e-Golf 2 or a Porsche 918 Spyder originates
in Weissach.

Over 90 percent of the software for the transmission management system comes from other divisions within the Group or is
developed in cooperation with external partners. This includes
diagnostic functions or the control of individual components that
do not have a direct effect on the driving experience.
Everything that impacts the Porsche brand personality must work
safely and perfectly. A development process derived from software
industry methodology makes sure of this. When a new model is
being developed, Porsche regularly tests the complete software
package in a network release, in which all the individual programs that will be used later across several dozen management
devices are tested together. The software is only installed into
series cars once everything functions perfectly in the network
release.

The software is expected to do even more in the future. When it

knows the exact range of power available, it can calculate in
advance the optimal driving strategy for the journey. This range
manager is still just an idea at present, but at Porsche they are
already investigating how it might work in series production. After
all, what is true on the racing track is also true on the road
drivers with effective, innovative software on board arrive at their
destination faster and more efficiently than others.

Porsche engineers take a different approach on the racing track.

Wherever the Porsche 919 Hybrid endurance sports car makes an
appearance, it is accompanied by at least one software expert
who immediately puts driver wishes or new insights about the route
into effect using a laptop. This is possible thanks to special management devices installed in the racing car which convert all the
inputs into the processors language, a binary code that uses
the digits 0 and 1. In series vehicles, this conversion into a machine-readable code is carried out in advance in a process that
engineers call compilation.

1 Porsche 918 Spyder fuel consumption in l/100 km combined from 3.0 to 3.1; energy
consumption in kWh/100 km combined 12.7; CO 2 emissions in g/km combined from 70 to 72.
2 Volkswagen e-Golf energy consumption in kWh/100 km combined 12.7; CO 2 emissions
in g/km combined 0.
Porsche Panamera fuel consumption in l/100 km combined from 3.1 to 10.7; energy
consumption in kWh/100 km combined 16.2; CO 2 emissions in g/km combined from
71 to 249 (see figure above on page 38).

Porsches software developers work closely together with their

group colleagues in Wolfsburg, Ingolstadt and Munich. This is
39

ENTU

AC T

In the fast lane

nt e

st l ne

How do you organize traffic in a conurbation that is home to more than 22 million people? Scania has come up
with answers to that question: the commercial vehicle manufacturers bus operations supply technology
and expertise for rapid transport solutions in fast-growing metropolitan areas. We take a trip to Mexico City.
T E X T Wolfgang Tschakert

P H O T O G R A P H Y Matthias Haslauer

ENTU

AC T

In the fast lane

BRT solves a lot of problems because it

combines the system advantages of a rail-based
network with the flexibility of buses.
Arnaud Dordilly, Managing Director cania Mexico

ou need strong nerves to drive a car or travel in one of

the innumerable minibuses in the Mexican capital. Covering a
distance of five kilometers in an hour counts as fast here. That is
why the metropolitan region has opted for a concept that has
proved its worth in many megacities: Bus Rapid Transit ( BRT ), an
express bus system that offers mobility for large numbers of
people in a relatively short period of time and with manageable
investment costs. The basic concept is the same everywhere
dedicated bus lanes, high bus frequencies and short boarding
and exit times at bus stops.
Scania buses have been operating in BRT systems in the South
American megacities Bogot and Rio de Janeiro for many years
now. Bogots rapid bus system is held up as an example and Rios
BRT transported the vast crowds of football supporters during the
2014 FIFA World Cup. Mexico City is now also turning to Swedish
know-how. Mexico Citys Metrobs company ordered 52 Scania
bus chassis for 18-meter articulated buses that can take up to
180 passengers and ten more for 15-meter three-axle buses that
can carry up to 100 passengers. The bodies are being manufactured by Brazilian coachbuilder Neobus.
Adapting the vehicles to precisely match the conditions in the
Mexican capital is crucial to the projects success. For example,
the buses for Mexico City have been designed with the door on
the left-hand side, because the bus stops are approached from the
right. The entry floor of the bus is at the same height as the waiting platform, thus saving valuable time when passengers are entering and leaving. Thats important because the buses based on
Scania technology will operate on Line 2, which is 21.3 kilometers
long and one of the most challenging BRT routes in the city. It
goes through Cuautitln Izcalli, the countrys most densely populated neighborhood in the Greater Mexico City area. Buses
arrive at one-minute intervals at 42 bus stops during rush hours,

transporting more than 211,000 passengers every day. A total of

367 express buses are on the road in the metropolitan region on
six BRT lines, and they are used every day by 850,000 passengers.
Scanias support for the bus company does not stop at specially
designed vehicles; it also provides driver training and a comprehensive service offering. This means that vehicles are quickly
back on the road after maintenance or repairs. The manufacturers
expertise in overland transportation comes in very useful here.
One in two long-distance coaches in Mexico today is one of ours,
reports Arnaud Dordilly, Managing Director of Scania in Mexico.
Now we want to roll out this success in the cities.
And the chances of this happening are looking good. BRT solves a lot
of problems because it combines the system advantages of a railbased network with the flexibility of buses, explains Dordilly. The
vehicles travel along their own dedicated corridors across the
citys main traffic routes. Feeder buses deliver passengers and take
over minor intersecting routes as well as connections to residen tial and industrial areas. An intelligent traffic light management
system gives priority to BRT vehicles. Tickets costing the equiva lent of just 0.27 for a single journey are bought using a smart
card before the journey begins, so no time is lost.
As a result, passenger satisfaction is high. Buses are and will
remain the most cost-effective, flexible means of local public
transportation, says Jonas Kempe, who is responsible for sustainable development at Scania Buses and Coaches. Some
4,000 Scania buses are currently in operation in BRT systems
on five continents. The Swedish commercial vehicle manufacturer is making its contribution to how transportation is organized in megacities across the world.

ENTU

AC T

Humans + machines

m ns
m c nes

The Volkswagen Group works closely with

Stanford University in California to research new
technologies. Piloted driving is top of the
agenda for Professor Jrgen Leohold, Head of
Volkswagen Group Research, and for
Stanford Professor Christian Gerdes. Talking to
these two experts, it becomes clear that
they set their sights on step-by-step automation
and self-learning machines.
T E X T Johannes Winterhagen

P H O T O G R A P H Y Georg Roske

ENTU

AC T

Humans + machines

Will we soon see cars driving autonomously on our roads, without the driver lifting a finger

PRO ESSOR

RGEN LEOHOLD

PRO ESSOR CHRISTIAN GERDES

Piloted driving will soon be perfectly normal in heavy highway traffic. And
the automobile of the future will also look for its own parking space once the
driver has got out. What we will definitely not see, however, at least not in
the next ten years, are self-driving cars capable of navigating every traffic
situation fully automatically. We are not talking about a revolution here,
but rather the systematic evolutionary development of driver assistance systems that are already fitted into our vehicles today.
After all, we shouldnt forget the amazing cognitive achievements that
human beings are capable of, particularly in complex situations. We engineers
cant duplicate that yet, so we have to begin by simplifying the problem.
We can do this, for instance, by limiting the car to low speeds or certain
stretches of road or automating individual driving tasks step by step.
Of course, we researchers are also working on the underlying requirements
for automated driving in urban traffic. This sort of vehicle would have to be
able to deal with every situation that might arise in real life not only in fine
weather, but also when it snows, for instance. Whats more, machines have
to learn the kind of communication that we humans take for granted, for example how we use eye contact and gestures to signal to each other who should
move first into a crossing.

Are customers really ready to let a machine take the wheel

I am convinced that everybody would be happy to hand over the steering
wheel in certain situations, such as stop-and-go traffic. We just have to make
sure that people on board an automated vehicle feel safe.
Thats why we are conducting intensive research into how the display and
controls in these vehicles should look. They should be as simple and intuitive
as possible. The driver must always be able to tell from the display exactly
what the vehicle is doing at that moment. For example, all maneuvers will
have to be indicated before they are carried out.
Incidentally, the Volkswagen Electronics Research Laboratory ( ERL) of the
Volkswagen Group of America in California and Stanford University are
also looking together at how automated driving should feel. This includes
analyzing what professional chauffeurs do to make their customers feel safe.
We are looking not only at acoustic or optical signals, but also at how customers experience longitudinal and lateral acceleration. This will determine
whether people trust a technical system or not. It may even be possible for an
autopilot to adapt itself to a customers individual driving style.

Is automated driving safer

We are only automating those functions where we can say with absolute
certainty that this will improve traffic safety for all road users.
We believe that, one day, it will be possible to design vehicles that avoid every
accident, at least as far as the physics will allow. Much lighter vehicles could
then be designed because they would need fewer safety features, which in turn
would cut fuel consumption.
A great deal of research and development is still necessary, however,
for example in the areas of sensor technology, software and testing methods.

What role does networking play in automated driving

An automated vehicle is always also a networked vehicle, for example because
it has to be able to access the latest map updates at any time. But networking
can also help automobiles to make the right decisions within milliseconds,
because they can take into account information from other vehicles.
This sort of self-learning computer program is no longer science fiction. The
question for us as researchers is how to organize this learning. In the future,
automobiles will probably be connected to a server that will allow them to
benefit from the experiences of other vehicles linked up to the same network.

What is Volkswagen s approach to data protection

Many people are prepared to supply certain information in return
for an easier life or real added value. We see that, for example, with
social media users.
Whats important for Volkswagen is that customers can decide for themselves
whether they are willing to supply information from their vehicle, as well
as how much information they make available. Its about transparency and
trust. Anonymized vehicle data will be used exclusively to improve traffic
safety. The car wont turn into a hungry data monster.

PRO ESSOR

RGEN LEOHOLD

has been Head of Volkswagen Group Research since

2006. The electrical engineering graduate began his
career at Volkswagen in 1987, initially holding various
managerial positions in the lectrics/ lectronics
Development division. Between 2002 and 2005,
Professor Leohold resumed his academic career,
serving as a professor at the Institute for Vehicle
ystems and Principles of lectrical ngineering
at the niversity of Kassel.

PRO ESSOR CHRISTIAN GERDES

is Professor of Mechanical ngineering at

tanford niversity, where his positions include
Director of the Dynamic Design Lab, which
cooperates closely with Volkswagen Group of
America s lectronics Research Laboratory in
California. Gerdes is regarded by the
automotive industry as one of the leading
experts in automated driving. His doctoral
thesis written back in 1996 was already
devoted to this topic.

ENTU

AC T

mart data

The work of the Data Lab is systematically

oriented to issues of the future digitization,
the Internet of Things and Industry 4.0.

Popular combinations of features can

be identified across brands and then offered
as packages or special models.

By analyzing all the information entered

in the internet configurator and combining it with
other data, Volkswagen knows early on what
customers will order in the future. This makes
planning easier and cuts delivery times.

Numerous specialists in the Data Lab work on

key technologies. This think tank secures
knowledge and talent for the Volkswagen Group.

stome w s es

m td t
Making targeted use of available data about vehicles, customers, business processes,
and so on: thats the mission of a new laboratory of the Volkswagen Groups
IT department. Computer scientists, statisticians and computational linguists there
are examining how intelligent data analysis can be used to improve quality
and service as well as reducing costs.
T E X T Johannes Winterhagen

P H O T O G R A P H Y Hartmut Ngele

lt
st n
Customer complaints from all over
the world are automatically
analyzed very uickly. That improves
uality and speeds up the
response to customer feedback.

Commercial vehicles need to

come into the workshop less often
if failure patterns can be
identified at an early stage and
repairs can be coordinated.

Cars and homes exchange data and

the central heating comes on exactly
when the driver is on the way home.

lt

How much fuel am I using

compared with other drivers on the
same stretch of road Fuel-saving
tips can be identified by analyzing
driving data precisely.

leep longer but still arrive at your destination

on time the intelligent alarm clock
uses current traffic and weather data to calculate
the ideal wake-up time.
Traffic density can be predicted much more accurately
thanks to new mathematical processes and
algorithms that recommend an alternative route and
help drivers to avoid traffic ams.

A large number of partners, from

technology companies through universities
down to start-ups, make available their
knowledge, tools and talent, for example to
analyze large volumes of data rapidly.

c enc
The Data Lab works as a
technology scout for
the entire Volkswagen Group.

etwo k

CORNELIA SCHAUREC ER

IT expert Cornelia chaurecker (38) has

been in charge of the new Volkswagen
Data Lab in Munich since the middle of
2013. he uses various approaches
such as Design Thinking, a method developed in the A , to structure her team s
ideas. A number of different demonstration
pro ects and prototypes show what is
already technically possible today. For example at CeBIT, the leading IT fair,
Data Lab continually analyzed how visitors
used the shuttle vehicles provided from
the Volkswagen e-up fleet a potential
method for optimizing traffic flows and
saving energy.

ENTU

AC T

A shared solution

A s ed
sol t on
Carsharing is still largely unknown
in China, the biggest passenger car market
in the world. However, it has the
potential to meet the desire of many people
in China for more flexible mobility.
Volkswagen Financial Services is a pioneer with
its early entry in this growth market.
T E X T Christiane K hl

P H O T O G R A P H Y Andreas Mader

ENTU

AC T

A shared solution

Our customers appreciate the great

flexibility our carsharing vehicles offer. And,
of course, a guaranteed parking space.
Mareike Garz, enior Program Manager
responsible for VRent, Volkswagen Financial ervices

Wang Haoping holds his smartphone against a self-service

terminal in the underground parking garage of Beijings International Financial Center. The scanner reads the QR code on the
display and a small metal box springs open silently. Inside is a key
for a gleaming black Volkswagen Sagitar which is waiting ten meters away. Unseen for the customers, an assistant stands in the background. He checks each vehicle when it is returned and ensures
that it is in perfect condition. The Volkswagen and Audi passenger cars in this underground parking garage change drivers frequently: they belong to VRent, the corporate carsharing project
launched by Volkswagen New Mobility Services.
The customer receives a QR code when they reserve the vehicle,
or can register using a RFID sticker on their drivers license. The
user is automatically identified wirelessly when they pick up their
vehicle, explains Mareike Garz, the senior program manager
responsible for VRent. The vehicles are collected from and returned
to a parking garage. From here, they turn onto one of the arterial
roads in Beijings central business district, past modern glass skyscrapers and across gigantic intersections. Garz looks down at
the traffic from her office on the 29th floor. Her target group works
in the surrounding high-rise office buildings VRent is exclusively aimed at corporate customers. Parking is in short supply
in Beijing, with over five million cars competing for around
2.5 million parking spaces. But every high-rise office building has
its own parking garage.
New mobility is one of four business fields at Volkswagen Financial
Services AG, which owns Volkswagen New Mobility Services. Its
VRent project has broken new ground in carsharing in the key
Chinese market. Public-sector interest in modern mobility concepts is growing. Car sales in China almost 18 million vehicles
in 2014 are unmatched by any other country. But infrastructure
in the cities, where more than half of Chinas population already
lives, cannot grow indefinitely. This is why carsharing has the
potential to become part of a new, intelligent transport policy.
With its early entry in the carsharing business, Volkswagen is

again playing a pioneering role as it did during the development

of the Chinese automotive industry at the beginning of the 1980s.
VRent has won several pilot customers, including Deutsche
Gesellschaft fr Internationale Zusammenarbeit (GIZ ). Its employees can reserve a car online or via a smartphone app. The
models range from the Volkswagen Sagitar through the Passat 1
down to the Audi A62 . They are billed by the hour and the price
includes gas, cleaning and maintenance. The aim is to make it as
easy as possible for customers, making the VRent project truly
groundbreaking. Initially, many colleagues did not know exactly
what carsharing is, says Alexander Jung, project manager for
e-mobility and climate protection, who is responsible for the project at GIZ . But they were quickly won over by the new offering.
The cars are very good and the system is very simple, confirms
his colleague Wang Haoping, who often uses VRent vehicles to
drive to appointments. We used to have to take a taxi. You are
much more flexible if you drive yourself. Wang sometimes also
takes advantage of the cheaper weekend rate for trips with his
family. In this way, employees can use the cars privately but pay
themselves.
Garz and her colleagues have strong arguments for promoting
the new offering: flexibility, cost savings and the quality of the
vehicles. And, of course, a guaranteed parking space. The team
now wants to offer VRent in three areas of Beijing with a particularly high concentration of high-rise office buildings, including
a financial district in the west and the Zhongguancun IT hub in
the northwest of the city. Studies on introducing the system in
further cities are well under way. Despite all of the challenges that
come with a pioneer project like this, Garz is convinced: VRent
will play a flagship role in China.
1 Volkswagen Passat fuel consumption in l/100 km combined from 1.6 to 5.4; CO 2 emissions
in g/km combined from 37 to 140 (including values from Volkswagen Passat GTE).
2 Audi A6 fuel consumption in l/100 km combined from 4.2 to 9.6; CO 2 emissions in g/km
combined from 109 to 224.

GI employee Wang Haoping

often used to go to meetings by taxi.
Now he uses VRent.

Mareike Garz is on a mission

to make car sharing popular in China.

ENTU

AC T

The assistants

E L E C T R O N I C S TA B I L I T Y CO N T R O L

Audi pioneered uattro technology and

was the first to install the lectronic tabilisation
Program ( P ) in a four-wheel-drive vehicle.
The system stabilized the A8 through targeted
braking of one or more wheels.
ANTIBLOC ING SYSTE

A milestone along the way to more active

safety the Group s first antiblocking
system was fitted in an Audi 200. Known
widely nowadays by its abbreviation
A B , it has kept drivers in control when
braking ever since.

E L E C T R I C C A B R I O L E T H O O D A S S I S TA N T

A comfort feature that caused uite a

stir the Porsche 911 s cabriolet
hood no longer needed to be opened
and closed by hand. A simple
push of a button was now all that
was re uired.

e ss st nts
At first sight they are mostly invisible, but in the last few decades electrical
and electronic systems have played an important role in making the
automobile safer and more comfortable. The Volkswagen, Audi and Porsche
brands have often pioneered these advances.
T E X T Laurin Paschek

TRA

IC

ASSIST

Traffic Jam Assist makes driving in stop-start

traffic less stressful by maintaining the distance to
the preceding vehicle. The system helps prevent
typical rear-end collisions. It keeps the vehicle within its lane, and brakes and accelerates nearly
automatically.
AC T I E R E A R A X L E S T E E R I N G A S S I S TA N T

The steering angle of the Porsche 911 Turbo s rear wheels

is determined by its speed. This results in greater
maneuverability at slow speeds and increases driving
stability at high speeds.

2002
P R OX I M I T Y CO N T R O L A S S I S TA N T

This assistant, also known as Adaptive

Cruise Control (ACC ), was first introduced in the Phaeton.
Today, it helps maintain sufficient distance
from the vehicle in front, and features in almost all
of the Volkswagen Groups model series.

2005
LANE CHANGE ASSIST

The Audi Side Assist system was first introduced in

the Audi Q7. An LED warning signal appeared
in the external mirror if there was a risk of a collision
with another vehicle when a driver was about to
change lanes. Radar sensors cover the drivers blind spot.

2007
PA R A L L E L PA R K I N G A S S I S TA N C E PA R K A S S I S T

The parallel parking assistance Park Assist not

only warns the driver about obstacles when
parking; it also takes over the necessary steering
maneuvers. It first appeared in the Touran
and is now making life easier for drivers of nearly
all Volkswagen models.

2008
HEADING CONTROL L ANE ASSIST

One in seven accidents resulting in injury is

caused by vehicles leaving their lane.
The heading control Lane Assist was first introduced in the Passat CC, automatically
countersteering the car if the system recognized
the vehicle was in danger of leaving its lane.

2009
EMERGENCY BRAKING SYSTEM

2010
M ASKED HIGH BEA M DYNA MIC LIGHT ASSIST

The masked high beam Dynamic Light

Assist made its first appearance in the Touareg,
enabling drivers to use the high beam
continuously without dazzling oncoming drivers.
A camera detects traffic and automatically dips the
high beam for vehicles ahead and oncoming drivers.

The Emergency Brake Assist system is a further

development of the emergency braking
system. First installed in the Audi A8, it recognizes
the imminent risk of a collision and can
immediately apply the brakes at full force in the
event of an emergency.

55

ENTU

EXPERIENCE

3
Automobiles will still be more than bits
and bytes in the future. High tech
and human intuition will work together.
Digital networks will support the
highest levels of individuality. Visionary
design will be combined with classic
beauty. The future of driving is fascinating
and it has already begun.

ENTU

EXPERIENCE

The next generation

e ne t

gene t on
They are used to communicating with their smartphones in every corner of
the world. And these digital natives want to be online and fully connected in their car
as well. In response to this trend, KODA has equipped the new Fabia1 with the
appropriate technologies. In addition, 125 possible color combinations deliver greater
individuality on our roads.
T E X T Laurin Paschek

P H O T O G R A P H Y Andreas Mader

ENTU

EXPERIENCE

The next generation

ociologists call them Generation

people born
between 1977 and 1998. They are the first generation for whom
computers, smartphones and apps come as second nature. They
consciously integrate new technologies into their lives. Independence, individuality and mobility are paramount. Their world is
colorful. Digital natives need to be always on at home, at work
and on the road. This means that individuality and connectedness
are the order of the day for the automotive industry, too.
The new KODA Fabia is a good example of how to bring Generation
Ys world into the car. Equipped with SmartGate technology, the

Fabia can transfer important vehicle data directly to a smartphone. This enables drivers to analyze their driving efficiency for
a particular route using the KODA Drive app, for example.
Each journey can also be shared with friends on social networks.
The Fabia also features a MirrorLink interface to operate smartphones safely and easily in the car. This function mirrors the
smartphones display on a screen in the central console and thus
brings smartphone intelligence into the car, making it possible
to access navigation apps or personal music collections.

How much fuel did my Fabia use on its last trip

sing martGate technology, drivers can get
answers to uestions like this on an app and share
them in social networks at the same time.

The new Fabias exterior can also be individually styled. Its creators
offer customers a style guide with a virtual color palette. This
guide allows KODA customers to paint their car before ordering. The body comes in a choice of 15 base colors. Another four
colors coordinated with each base color are available for the
roof, rims and external mirrors. Finally, there are four interior
variants. The new Fabia has a total of 125 possible color combinations, making the streets a brighter place with individual
pops of color.
1 KODA Fabia fuel consumption in l/100 km combined from 3.4 to 4.8;
CO 2 emissions in g/km combined from 88 to 110.

ENTU

EXPERIENCE

Rain Room

n oom
urely no other artwork currently expresses the interplay between human beings, nature
and technology more sensitively and intelligently than Rain Room, the installation created by
British-German arts collective Random International. People move around inside a space
in the pouring rain but they don t get wet A high-precision infrared camera system and over
50,000 individually controlled water ets turn communication between human beings
and space into a spectacular immersive experience. Rain Room sensitizes visitors to their
immediate environment and asks them to examine their relationship with nature. The
interactive installation is the centerpiece of the
PO 1 exhibition developed by the Museum
of Modern Art in New ork in partnership with Volkswagen Group of America.
Rain Room gives us the illusion of being able to control the weather and simultaneously
appeals to our ecological awareness we should use technology to work in harmony with the
powers of nature, not try to change them. (Klaus Biesenbach, Director MoMA P 1)

ENTU

EXPERIENCE

People will always be people

innovation

system

navigation

automobile
research

preferences

language

machine
mobility

display

address

service

country-specific

interface

Bei ing

people
will always
be people

localization

eo le

w ll lw

s e

eo le

We are all unique individuals with our own particular experiences,

preferences and desires that are shaped not least by our
language and our culture. The control elements in a vehicle must take
these preferences into account which is why Audi is developing
human-machine interfaces at its Beijing research and development
center that are tailored to the needs of Asian consumers.
T E X T Christiane K hl

P H O T O G R A P H Y Andreas Mader

ENTU

EXPERIENCE

People will always be people

Testers first simulate a new menu structure for destination

entry by writing on index cards. The insights gained
will later be incorporated into the digital navigation system.

One of our top priorities is to

understand our Asian customers, and
to convert that into countryspecific technical re uirements.
aad Metz, Head of Audi Research and Development Center in Bei ing

iao Jie sits at the wheel of an Audi prototype and enters a

simulated destination. He uses a red pen to write the four Chinese
characters Bei Jing Da Xue (Beijing University) on a card. Qiao Jie
is a test customer recruited by Audi during the development of
the control concepts. Cao Shanshan from Audis electrical and
electronics competence center in Beijing is in the passenger seat.
She and her human guinea pig use index cards to test the individual
input steps for different control scenarios. The simple graphics
printed on the cards represent the display panel in Audis nextgeneration infotainment system for the Chinese market. The
simu lation helps us to gauge customers reactions to the system
before the software for it is programmed, explains Cao.
This seemingly simple process is important because Chinese
drivers often have quite different preferences and behavior patterns
from their counterparts in other countries. One of our top priorities
here is to understand our Asian customers and local conditions,
and to convert that understanding into country-specific technical
requirements, says Saad Metz, Head of Audi Research and
Development center in Beijing. All our systems must provide
optimal support to drivers and take into account their individual
requirements. The controls must be intuitive, and thats why
people are always at the very heart of our development work.
Audis innovation center has been operating in Beijings creative
quarter for two years. Currently, 235 people are employed in
seven departments in areas such as trend scouting, product development, localization and testing. We are the very first international
Audi development site to do this we are breaking new ground,
reports Metz. The engineers involved in developing applications,
vehicle testing and localization dont just work with the headquarters teams in Ingolstadt: they also collaborate with Volkswagen
Group Chinas research and development teams and with individual plants.

ENTU

EXPERIENCE

People will always be people

The simulation helps us to gauge

customers reactions to the system before
the software for it is programmed.
Cao hanshan, employee at the Audi lectronical and lectronic Center Bei ing

Particularly when it comes to control elements and input systems,

Asian customers requirements are markedly different from
those of customers in other parts of the world. For example, they
prefer flatter menu structures to structures with hierarchically
ordered levels that require the user to click through several steps.
Audi in Beijing is therefore working on a new input structure for
the next generation of its navigation system, where the driver will
be able to input the entire destination address at the first level.
The fact that exact address details with streets and house numbers
are not usually available in China also has to be taken into
account. If you are looking for a restaurant, for example, just
entering its name is enough to pinpoint it. In addition, the names
of large building complexes are important landmarks that the
navigation system must know and match precisely.
By taking human-machine interface development to a countryspecific level, Audi is also fulfilling its promise of Vorsprung durch
Technik in the field of digital communication. To achieve this,
the premium automobile manufacturer works closely with research
institutions. In a joint project with Shanghais renowned Tongji
University, specific customer requirements are first recorded by
regional trend researchers. The engineers and designers in
Beijing then take these findings and work together with the Technical Development teams in Ingolstadt to develop and try out series
solutions that they subject to exhaustive testing procedures.
We always adapt the solutions to meet Chinese requirements,
explains Cao. The point-of-interest ( POI ) call is a vivid example
of this. A driver can use the system to automatically call up the Audi
service center with just one click. The customers location and
direction of travel are relayed to the person answering the call. The

driver simply supplies the destination and then the navigation

data appears directly on the vehicles display. Many Chinese
people like using this service rather than entering data into the
system, says Cao.
The complicated writing system is a major reason. China, Taiwan,
Hong Kong, Japan and Korea use character sets that cannot
easily be rendered by the usual input methods. This is because all
of these languages use symbols based on Chinese characters that
are not comparable to an alphabet. Instead, each character has
its own meaning. Audi drivers can already use their fingertips to
enter characters on a multimedia interface ( MMI ) touchpad located
on the rotary push control unit of the infotainment system or the
central console. The system recognizes around 29,000 different
characters, covering practically the entire Chinese vocabulary.
In addition, the system also recognizes more than 7,200 Korean
and 6,700 Japanese characters without fail.
Asia is developing very rapidly. The trend towards individualization is noticeable everywhere, but state-of-the art technologies
like piloted driving or driver assistance systems will also play an
important role in China, says Metz. Smartphones and tablets
are driving these developments and peoples expectations of
our systems are constantly expanding. The engineers in Audis
research lab are working non-stop to adapt control philosophies
to the different markets. At the same time we never lose sight of
the Audi gene, insists Metz, for despite the widely varying cultural
and linguistic challenges at the interface between humans and
machines one thing remains clear: people will always be people
and an Audi will always be an Audi.

Characters can either be selected from a list or drawn on the MMI

touchpad using a finger. The system recognizes around
29,000 different Chinese characters almost the entire vocabulary.

ENTU

EXPERIENCE

The future is limitless

e t e
s l m tless
The Volkswagen Groups luxury and sports car brands already stand for
visionary design today. But how will their design language evolve in the future?
The chief designers of Bentley, Porsche, Bugatti, Lamborghini and
Ducati share their own personal visions for the dream vehicles of 2034.

The materials and proportions of a Bentley stand

for pure luxury and performance stemming from a great legacy
in motorsport and will continue to do so in the future.
Luc Donckerwolke, Director of Design, Bentley

ENTU

EXPERIENCE

The future is limitless

Both visionary and purist. Porsche s uni ue

design will always be part of its DNA,
while still reflecting technical progress.
Michael Mauer, Chief Designer, Porsche

This Lamborghini symbolizes the unexpected.

It is built like an intricate piece of origami
and only has room for one person, creating a uni ue
symbiosis between driver and machine.
Filippo Perini, Head of Design, Lamborghini

ENTU

EXPERIENCE

The future is limitless

A Bugatti must be as uni ue as a work

of art. A two-tone color scheme and clean lines
give the car a distinct personality.
Achim Anscheidt, Design Director, Bugatti

A Ducati will always be a Ducati.

The mere sight of one triggers a rush of adrenalin
and intense longing in the beholder.
Andrea Ferraresi, Director, Ducati Design Center

ENTU

EXPERIENCE

Another step forward

11.5
billion euros were spent by the Volkswagen Group
on research and development in 2014 alone.

10,000

10

million vehicles were delivered by

the Volkswagen Group in 2014. This means
that the target for 2018 has been
reached four years ahead of schedule.

4.0
The Volkswagen Group s plants
are working at full speed on fully connected,
intelligent automobile production.

computer scientists and

IT experts are driving digitization in
the Volkswagen Group.

Anot e ste

o w d

Numbers sometimes speak louder than words. Seven

milestones show how far the Volkswagen Group has already come
on its journey into tomorrows world of mobility.

200

million vehicles produced the Volkswagen Group

celebrated this anniversary in October
2014. Half of the vehicles were produced in the
past 15 years alone.

144,000
new obs have been created by the Volkswagen Group
since 2007 55,000 of them in Germany.

57
Group models are already
below the threshold of 95 grams
of CO2 per kilometer.

Acknowledgments
PUBLISHED BY

Volkswagen AG
Group Communications
Letterbox 1970
38436 Wolfsburg
Germany
Phone +49 (0) 5361 9-0
Fax +49 (0) 5361 9-28282
www.volkswagenag.com
CO N C E P T, D E S I G N A N D R E A L I Z AT I O N

3st kommunikation, Mainz

EDITORIAL , TEXT

delta eta - Laurin Paschek & Johannes Winterhagen,

Frankfurt/Main
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Annual Financial Statements of

Volkswagen AG
for the Period Ended
December 31, 2014

Balance Sheet
Income Statement
Notes to the Annual Financial
Statements

List of Holdings in accordance with

sections 285 and 313 of the HGB
of Volkswagen AG
and the Volkswagen Group
as of December 31, 2014
(Note:

The combined Management Report of Volkswagen AG

and of the Volkswagen Group is included in the
published Annual Report of Volkswagen Aktiengesellschaft.)

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Annual Financial
Statements of
Volkswagen AG
BALANC E SH EET OF VOLKSWAGEN AG AS OF DEC E MBER 31, 2014

million

Note

Dec. 31, 2014

Dec. 31, 2013

Assets
Fixed assets

Intangible assets
Tangible assets
Long-term financial assets

190

123

7,329

6,438

79,584

63,370

87,103

69,931

Current assets
Inventories

3,932

3,695

Receivables and other assets

16,578

22,066

Cash-in-hand and bank balances

Prepaid expenses

8,434

11,279

28,944

37,041

89

66

116,135

107,037

1,218

1,191

Capital reserve

11,391

9,414

Revenue reserves

13,575

13,395

Total assets
Equity and Liabilities
Equity
Subscribed capital
Ordinary shares

755

Preferred shares

462

Contingent capital

102

Net retained profits

2,299

1,874

28,483

25,874

Special tax-allowable reserves

33

41

Provisions

31,122

28,523

Liabilities

10

56,362

52,481

Deferred income
Total equity and liabilities

134

117

116,135

107,037

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Financial Statements of Volkswagen AG for the Period ended December 31, 2014

I NCOME STATEMENT OF VOLKSWAGEN AG

FOR TH E PER IOD JAN UARY 1 TO DEC E MBER 31, 2014

Note

Sales

11

Cost of sales
Gross profit on sales
Selling expenses
General and administrative expenses

2014

2013

68,971

65,587

65,293

61,937

3,678

3,650

5,294

4,832

1,135

1,256

Other operating income

12

4,626

4,287

Other operating expenses

13

3,756

3,344

Financial result

14

6,222

6,144

Write-downs of long-term financial assets and securities classified as current assets

114

29

Result from ordinary activities

4,227

4,620

1,751

1,542

2,476

3,078

Taxes on income
Net income for the year

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Notes to the Annual

Financial Statements of
Volkswagen AG for the
Period ended December 31,
2014
Financial statements in accordance with the German Commercial Code
Volkswagen AG is domiciled in Wolfsburg, Germany, and entered in the commercial register at the Braunschweig
Local Court under no. HRB 100484. The annual financial statements of Volkswagen AG have been prepared in accordance with the provisions of the Handelsgesetzbuch (HGB German Commercial Code) and comply with the
provisions of the Aktiengesetz (AktG German Stock Corporation Act). The fiscal year corresponds to the calendar year.
To enhance the clarity of presentation, individual items of the balance sheet and the income statement have been
combined. These items are disclosed separately in the notes. The income statement uses the cost of sales (function of
expense) format to enable better international comparability. Information that can be disclosed optionally in the
balance sheet or the income statement, or in the notes to the annual financial statements, is disclosed in its entirety in
the notes to the annual financial statements or the management report. All figures shown are rounded, so minor
discrepancies may arise from adding together these amounts.
Volkswagen AG performs electricity generation and distribution/sales activities together with a Group subsidiary.
As a result, Volkswagen AG and this subsidiary are classed as a vertically integrated energy company within the
meaning of section 3 no. 38 of the Energiewirtschaftsgesetz (EnWG German Energy Industry Act) and are therefore
subject to the provisions of the EnWG. Separate accounts must normally be maintained for certain activities in the
energy sector in accordance with section 6b(3) of the EnWG (unbundling requirement in accounting systems).
Volkswagen AG itself only operates customer systems in accordance with section 3 no. 24 b and 24 a of the EnWG
(medium-voltage and low-voltage grids). The subsidiary distributes the electricity via a general supply network (highvoltage grid in Wolfsburg, section 3 no. 17 of the EnWG).
The list of all shareholdings is a component of the notes and can also be downloaded from the electronic
companies register at www.unternehmensregister.de and from www.volkswagenag.com/ir under the heading
Mandatory Publications.

Declaration on the German Corporate Governance Code in accordance with

section 161 of the AktG/section 285 no. 16 of the HGB
The Board of Management and Supervisory Board of Volkswagen AG issued the declaration of conformity in accordance with section 161 of the AktG on November 21, 2014.
The declaration of conformity has been made permanently available at www.volkswagenag.com/ir under the
heading Corporate Governance and the menu item Declarations.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Significant events in the fiscal year

Volkswagen AG acquired an aggregate interest of 6.5 billion in the share capital of Scania AB, Sdertlje, Sweden,
with a share in the voting rights of 10.5% and thus holds over 82% (Volkswagen Group: over 99%) of the voting rights
in total. The capital of Porsche Holding Stuttgart GmbH, Stuttgart, was increased by a total of 4.3 billion. In addition,
capital increases were implemented at Volkswagen Financial Services AG, Braunschweig (2.3 billion), at Volkswagen
Finance Luxemburg S.A., Luxembourg (1.7 billion), and at AUDI AG, Ingolstadt (1.6 billion). There were also smaller
capitalization measures at affiliated companies. 1.1 billion was invested in the HI-TV treasury fund.
Volkswagen AG acquired the shares of Volkswagen Argentina S.A., Buenos Aires, Argentina, for 0.1 billion and
contributed receivables in the amount of 0.2 billion to the company.
Losses totaling 0.6 billion were absorbed by Truck & Bus GmbH as a result of the control and profit and loss
transfer agreement.

Accounting policies
The accounting policies applied in the previous year were retained. As before, the items Other investment income and
expenses and Other financial result have been added to the classification format for the income statement. These two
items are addressed in greater detail in note (14) Financial result.
Purchased intangible assets are recognized at cost and amortized over three to five years using the straight-line
method. Internally generated intangible assets are not recognized. Grants paid for third-party assets are capitalized as
purchased rights to use and amortized over five years. These assets are derecognized once they have been fully
amortized.
Tangible assets are carried at cost and reduced by depreciation. Investment grants are deducted from cost.
Production costs are recognized on the basis of directly attributable material and labor costs, as well as
proportionate indirect material and labor costs, including depreciation and amortization. Administrative cost
components are not included.
Depreciation is based primarily on the following useful lives:

Useful lives

Buildings

25 50 years

Leasehold improvements

9 33 years

Technical equipment and machinery

5 20 years

Operating and office equipment (including special tools)

3 25 years

For additions up until December 31, 2009, to the extent allowed by tax law, depreciation of movable items of tangible
assets is generally charged initially using the declining balance method, and subsequently using the straight-line
method, and also reflects the use of assets in multishift operation. The option to retain and adjust lower carrying
amounts of tangible asset balances at December 31, 2009 in accordance with section 67(4) of the Einfhrungsgesetz
zum Handelsgesetzbuch (EGHGB Introductory Act to the German Commercial Code) has been exercised. Movable
items of tangible assets purchased or manufactured as from January 1, 2010 are depreciated using the straight-line
method.
As a general rule, additions of movable assets are depreciated ratably in the year of acquisition.
Low-value assets are written off and derecognized in full in the year they are acquired. In addition, certain items of
operating and office equipment with individual purchase costs of up to 1,500 are treated as disposals when their
standard useful life has expired.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

The differences between the carrying amounts required by the HGB and the lower carrying amounts allowed under tax
law were recorded in the special tax-allowable reserves presented between equity and liabilities in the balance sheet.
Existing special reserves are retained since they were recognized before the year of the transition to the provisions
of the Bilanzrechtsmodernisierungsgesetz (BilMoG German Accounting Law Modernization Act). These are
reversed to the income statement and are based on the provisions of section 3(2) of the Zonenrandfrderungsgesetz
(German Zonal Border Development Act), section 6b of the Einkommensteuergesetz (EStG German Income Tax
Act)/regulation 6.6 of the Einkommensteuerrichtlinien (EStR German Income Tax Regulations), section 7d of the
EStG, section 82d of the Einkommensteuer-Durchfhrungsverordnung (EStDV German Income Tax Implementing
Regulation) and regulation 35 of the EStR. No new special reserves have been recognized since January 1, 2010.
Write-downs are recognized if the impairment is expected to be permanent; write-downs are reversed up to the
amount of historical cost, net of depreciation or impairment, as soon as the reasons for impairment no longer apply.
Shares in affiliated companies and other equity investments are measured at the lower of cost and net realizable
value. Annual impairment tests are performed.
Long-term investments are carried at the lower of cost or fair value in the case of permanent impairment.
Securities held as plan assets for post-employment benefit obligations are measured at fair value and offset against
the corresponding provisions. These securities are assets that are exempt from attachment by all creditors and that
exclusively serve to settle liabilities from post-employment benefit obligations. The fair value of these assets
corresponds to the market price (section 255(4) of the HGB).
Non- or low-interest-bearing loans are carried at their present value; other loans are carried at their principal
amount.
Raw materials, consumables and supplies, and merchandise carried in inventories are measured at the lower of
average cost and replacement cost. In addition to direct materials and direct labor costs, the carrying amount of
finished goods and work in progress also includes proportionate indirect materials and labor costs, including
depreciation in the amount required. Adequate valuation allowances take account of all identifiable storage and
inventory risks.
Receivables and other assets are carried at their principal amounts. Write-downs to the lower fair value are
recognized for identifiable specific risks.
Receivables due after more than one year are carried at their present value at the balance sheet date by applying an
interest rate to match the maturity.
Volkswagen AG recognizes emissions certificates as of the date of issue or acquisition. They are measured at the
lower of cost or fair value. Emissions certificates issued free of charge are recognized as a memorandum item. Each
certificate is valued at 7.20 per tonne of CO2 as of the reporting date (quoted prices: Carbix).
Receivables denominated in foreign currencies are translated at the middle spot rate prevailing at the date of
initial recognition. Receivables that are due within less than one year are translated at the middle spot rate at the
reporting date. In the case of receivables with a longer term, a lower exchange rate at the balance sheet date results in
the remeasurement of the receivable at a lower carrying amount, with the difference recognized in the income
statement; a higher exchange rate at the balance sheet date (remeasurement gain) is not recognized. Hedged
receivables are not remeasured at the closing rate.
Purchased foreign currency options are carried at the lower of cost or fair value until maturity.
Securities classified as current assets are carried at the lower of cost or fair value.
Expenditure prior to the balance sheet date that represents an expense for a specific period after this date is
recognized under prepaid expenses on the assets side of the balance sheet.
Deferred taxes are recognized for temporary differences between the carrying amounts required by the HGB and
the tax base of all assets and liabilities. As Volkswagen AG is the consolidated tax group parent and thus also the
taxpayer for affiliated companies with which there are profit and loss transfer agreements, the differences at those
companies are also included when calculating deferred taxes. Volkswagen AG is also a partner in various partnerships.
Deferred taxes in respect of the difference between the HGB carrying amounts of assets and liabilities and their tax
base are also reported at Volkswagen AG where these relate to corporation tax. The deferred taxes in respect of these
differences are calculated on the basis of an average income tax rate of 29.8% or 15.8% for temporary differences that
are attributable to different carrying amounts at partnerships in which Volkswagen AG is a partner. The option to
recognize excess assets in accordance with section 274 of the HGB is not exercised.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Adequate provisions are recognized at their settlement amount for identifiable risks and uncertain obligations on the
basis of prudent business judgment, taking into account expected future price and cost increases. Provisions cover all
identifiable risks of future settlement.
Pension provisions are measured in accordance with actuarial principles; the projected unit credit method is used
for defined benefit plans. Future obligations are measured on the basis of the ratable benefit entitlements earned as of
the balance sheet date.
In addition to the pension payments and vested entitlements known at the balance sheet date, future increases in
salaries and pensions are taken into consideration, along with other relevant parameters. The discount rate as
published by the Deutsche Bundesbank as of November 30, 2014, was extrapolated to December 31, 2014. This figure
is used to measure pension provisions in accordance with section 253(2) of the HGB and is based on the discount rate
of 4.54% for a remaining maturity of 15 years.
Provisions that have an expected remaining maturity of more than one year are discounted at an interest rate to
match the maturity. The amounts to be presented in the financial result are included in the Other financial result item.
Since 2013, settlement amounts payable in connection with partial retirement agreements have been accounted
for as individual agreements with a remuneratory character in other provisions; prior to 2013, they were recognized
in other liabilities.
Provisions for warranty obligations are recognized on the basis of the historical or estimated probability of claims
affecting vehicles delivered.
Currency forwards and commodity futures contracts are measured by comparing the agreed rate with the forward
rate for the same maturity at the balance sheet date. A provision is recognized for any resulting unrealized loss. Any
positive gains (remeasurement gains) are not recognized. Gains and losses are not offset. Measurement gains or losses
are discounted to the present value.
Provisions for taxes are calculated according to the principles of prudent business judgment. Liabilities are carried
at their redemption or settlement amount.
Liabilities denominated in foreign currencies are translated at the middle spot rate prevailing at the date of initial
recognition. Short-term foreign currency liabilities due within one year or less are measured at the middle spot rate.
Long-term foreign currency liabilities are recognized at a higher carrying amount, with the difference recognized in
the income statement if the closing rate is higher. Lower exchange rates at the balance sheet date (remeasurement
gains) are not recognized.
Receipts prior to the balance sheet date that represent income for a specific period after that date are reported
under deferred income on the equity and liabilities side of the balance sheet.
The amount of contingent liabilities disclosed corresponds to the liable amount.
Where possible and feasible, derivatives entered into for hedging purposes are combined to form hedges if they have
comparable risks to the hedged item. These are recognized using the net hedge presentation method; i.e. the items
are not measured to the extent that and for as long as offsetting changes in fair value or cash flows are compensated.
Derivatives not included in hedge accounting are measured individually at fair value. Any resulting unrealized
losses are recognized in income. Assets or liabilities hedged by cross-currency swaps and currency forwards are
translated at the contractually agreed rates at the time of initial recognition. Transactions denominated in foreign
currencies are translated at the exchange rates prevailing at the transaction dates or at agreed exchange rates.
Expected exchange rate losses at the balance sheet date are reflected in the measurement of the items. Receivables and
liabilities due within less than one year that are denominated in foreign currencies are translated at the middle spot
rate prevailing at the balance sheet date. Equity investments are translated at the rate prevailing at the date of
acquisition.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

In the income statement, the allocation of expenses to the cost of sales, selling and general and administrative
functions is based on cost center accounting principles.
Cost of sales contains all expenses relating to the purchase of materials and the production function, the costs of
merchandise, the cost of research and development, and warranties and product liability expenses.
Selling expenses include personnel and non-personnel operating costs of our sales and marketing activities, as
well as shipping, advertising, sales promotion, market research and customer service costs.
General and administrative expenses include personnel and non-personnel operating costs of the administrative
functions.
Other taxes are allocated to the consuming functions.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Balance Sheet Disclosures

(1) FIXED ASSETS

The classification of the assets combined in the balance sheet and their changes during the year are presented on
pages 10 to 11.
Capital expenditures amounted to:

million

2014

Intangible assets
Tangible assets
Long-term financial assets

2013

122

53

2,682

2,449

18,247

19,895

21,051

22,397

Significant additions to long-term financial assets are explained under Significant events in the fiscal year on page 4.
Long-term investments also include securities (Time Assets fund and pension fund).
Depreciation, amortization and write-downs were charged on:

million

2014

Intangible assets
Tangible assets
Long-term financial assets

2013

57

54

1,773

1,535

114

29

1,944

1,618

Assets recognized before the introduction of the BilMoG continue to be depreciated using the declining balance
method. Depreciation of tangible assets includes declining balance depreciation in the amount of 0.1 billion.
Write-downs of financial assets relate to the carrying amount of the investment in SGL Carbon SE, Wiesbaden, and
Volkswagen India Pvt. Ltd., Pune, India.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

DIS C LO SU R E S I N ACCOR DA NC E W ITH S E CTIO N 2 8 5 NO. 2 6 O F TH E H G B

Securities investment funds (values as of December 31, 2014)

Carrying amount

Fair value

Fair value
carrying amount

Distribution 2014*

Daily redemption
possible

Write-downs not
recognized

HI-TV Fund

5,761

5,743

18

162

yes

yes

HI-ZW Fund

1,548

1,548

95

yes

no

HI-PF Fund

2,853

2,853

158

yes

no

million

* Distributions in 2014 relate to fiscal years 2013 and 2014

The funds investment objectives are a return to match the maturity with appropriate risk diversification using the
following asset classes: equities, fixed-income securities, cash investments and other assets. These can be invested in
both Germany and internationally. The fund units can be redeemed on a daily basis. Fair values are calculated on the
basis of quoted market prices.
The treasury fund (HI-TV) is allocated to fixed assets at Volkswagen AG and measured at cost. The HI-TV Fund was
not written down to the lower fair value in 2014 as no permanent impairment was expected. The reason for this was an
upward trend in the average fair value of the fund in the course of 2014.
The Time Assets fund (HI-ZW) and the pension fund (HI-PF) exclusively serve to meet occupational pension
obligations and similar long-term obligations and are measured at fair value. Both funds are offset against the related
obligations. As a result, the funds are offset against the related obligations in the annual financial statements. Income
and expenses from fair value measurement of the funds are recognized immediately in income. This means that there
is no requirement to test them for any potential permanent impairment.

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

STAT E M E N T O F C H A N G E S I N F I X E D A S S E T S

GROSS CARRYING AMOUNTS

million

Cost
Jan. 1, 2014

Additions

Transfers

Disposals

Cost
Dec. 31, 2014

316
17

110

15

54

387

12

13

16

333

122

54

403

Intangible assets
Industrial and similar rights and
assets, and licenses in such rights
and assets
Payments on account
Tangible assets
Land, land rights and buildings,
including buildings on third-party
land

4,981

116

213

5,306

Technical equipment and

machinery

11,154

513

274

427

11,514

Other equipment, operating and

office equipment

16,329

1,280

332

286

17,655

Payments on account and assets

under construction

1,024

773

821

972

33,489

2,682

722

35,447

54,787

16,666

1,763

69,689

513

423

129

807

2,247

26

2,273

6,144

1,131

71

7,205

Long-term financial assets

Shares in affiliated companies

Loans to affiliated companies
Other equity investments
Loans to other investees and
investors
Long-term investments
Other loans

Total fixed assets

24

22

63,715

18,247

1,965

79,996

97,537

21,051

2,741

115,847

10

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

DEPRECIATION, AMORTIZATION AND WRITE-DOWNS

Cumulative
depreciation,
amortization and writedowns
Jan. 1, 2014

Depreciation,
amortization
and writedowns in
current year

Disposals

Transfers

210

57

54

210

57

3,931

Reversals of writedowns

Cumulative
depreciation,
amortization and
write-downs
Dec. 31, 2014

Carrying amounts
Dec. 31, 2014

Carrying amounts
Dec. 31, 2013

214

173

105

16

17

54

214

190

123

100

4,028

1,278

1,050

9,291

699

423

9,566

1,948

1,864

13,829

973

278

14,524

3,131

2,500

972

1,024

27,051

1,773

705

28,118

7,329

6,438

234

43

200

69,489

54,553

807

513

86

106

192

2,081

2,161

24

21

7,184

6,120

22

23

345

114

43

413

79,584

63,370

27,606

1,944

802

28,744

87,103

69,931

11

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

( 2 ) I N V E N TO R I E S

million

Dec. 31, 2014

Dec. 31, 2013

Raw materials, consumables and supplies

971

860

Work in progress

990

839

1,961

1,972

Finished goods and merchandise

Payments on account

10

25

3,932

3,695

Dec. 31, 2014

Dec. 31, 2013

1,386

1,172

( 3 ) R E C E I VA B L E S A N D O T H E R A S S E T S

million

Trade receivables
due after more than one year

(0)

(4)

13,130

18,840

of which trade receivables

(3,063)

(2,511)

due after more than one year

(1,639)

(1,695)

Receivables from affiliated companies

Receivables from other investees and investors

of which trade receivables
due after more than one year
Other assets
due after more than one year

758

794

(746)

(779)

1,304

1,260

(147)

(149)

16,578

22,066

In addition to trade receivables, receivables from affiliated companies are composed primarily of short- and mediumterm loans and receivables relating to profit distributions, including income tax allocations.
Other assets primarily include tax reimbursements that are not yet due (704 million), receivables from the sale of
used cars on behalf of subsidiaries (202 million), claims for reimbursement of warranty payments (148 million) and
payments on account (99 million). Other securities were written down in full in previous years.
(4) CASH-IN-HAND AND BANK BALANCES

Bank balances (8.4 billion) include a total of 1 billion held at affiliated companies, of which 1 million has a
term of more than one year (previous year: ).
( 5 ) S U B S C R I B E D C A P I TA L

The subscribed capital of Volkswagen AG is composed of no-par value bearer shares with a notional value of 2.56.
As well as ordinary shares, there are preferred shares that entitle the bearer to a 0.06 higher dividend than
ordinary shares, but do not carry voting rights.
In January 2014, Volkswagen AG issued 22,103 newly created preferred shares (notional value: 56,583.68)
resulting from the exercise of convertible notes.

12

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Authorized capital of up to 110 million, expiring on April 18, 2017, was approved for the issue of new ordinary bearer
shares or preferred shares based on the resolution by the Annual General Meeting on April 19, 2012. In June 2014,
Volkswagen AG issued 10,471,204 new preferred shares (notional value: 27 million); the remaining authorized
capital amounts to 83 million. Volkswagen AG recorded a cash inflow of approximately 2 billion from the capital
increases.
The subscribed capital amounted to 1,218 million (previous year: 1,191 million) following the capital increase
and is composed of 295,089,818 no-par value ordinary shares and 180,641,478 no-par value preferred shares.
The Annual General Meeting on April 22, 2010 resolved to create contingent capital in the amount of 102 million
expiring on April 21, 2015 that can be used to issue up to 5 billion in bonds with warrants and/or convertible bonds.
To date, Volkswagen AG has used this contingent capital as follows:
In November 2012, Volkswagen AG placed a convertible note in the amount of 2.5 billion that entitles and obliges
holders to subscribe for preferred shares via a subsidiary, Volkswagen International Finance N.V. Amsterdam/the
Netherlands (VIF; issuer). The preemptive rights of existing shareholders were disapplied. The convertible note bears
interest of 5.50% and expires on November 9, 2015. The issuer granted a loan to Volkswagen AG in the amount of the
issue proceeds; this is recognized under liabilities to affiliated companies.
This convertible note was supplemented by the issue of another convertible note in the amount of 1.2 billion in
June 2013. The features of the new convertible note correspond to those of the convertible note issued in November
2012. It was issued at a price of 105.64% of the principal amount. Additionally, accrued interest (1 million) was
received and deferred. The new convertible note also matures on November 9, 2015. The issuer granted a loan to
Volkswagen AG in the amount of the issue proceeds; this is recognized under liabilities to affiliated companies together
with the tranche from November 2012.
The current minimum conversion price is 147.61, and the maximum conversion price is 177.13. The
conversion price will be adjusted if certain events occur. The convertible notes will be settled by issuing new preferred
shares no later than at maturity. The issuer is entitled to convert the convertible notes at any time at the minimum
conversion price. The note terms and conditions also provide for early conversion options. This discretionary
conversion right was exercised in the reporting period, with a total of 4 million of the notes being converted into
22,103 new preferred shares at the effective maximum conversion price at the conversion date.
( 6 ) C A P I TA L R E S E R V E S

million

Dec. 31, 2014

Dec. 31, 2013

11,391

9,414

The capital reserves comprise the share premium totaling 11,065 million from capital increases, the share premium
of 219 million (previous year: 219 million) from the issue of bonds with warrants and an amount of 107 million
appropriated on the basis of the capital reduction implemented in 2006. The capital reserves rose by 1,973 million in
the fiscal year as a result of a capital increase and by 4 million due to the exercise of conversion rights attached to the
convertible note (see section (5) Subscribed capital). No amounts were withdrawn from the capital reserves.

13

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

(7) R EVEN U E RESERVES

million

Dec. 31, 2014

Legal reserve
Other revenue reserves

Dec. 31, 2013

31

31

13,544

13,364

13,575

13,395

In accordance with section 58(2) of the AktG, 180 million was appropriated from net income for the year to other
revenue reserves.

( 8 ) S P E C I A L TA X - A L L O WA B L E R E S E R V E S

million

Accelerated tax depreciation

Dec. 31, 2014

Dec. 31, 2013

33

41

33

41

Dec. 31, 2014

Dec. 31, 2013

13,087

12,424

(9) PROVI SI O NS

million

Provisions for pensions and similar obligations

Provisions for taxes
Other provisions
short-term (up to 1 year)
medium-term
long-term (over 5 years)

5,318

5,026

12,717

11,073

31,122

28,523

10,080

8,020

7,758

8,298

13,284

12,205

31,122

28,523

Provisions for pensions and similar obligations

Provisions for pensions are recognized for commitments in the form of retirement, invalidity and dependents
benefits payable under pension plans. The benefits usually depend on the employees length of service and
remuneration. At Volkswagen AG, pension plans are based on defined benefit plans, whereby a distinction is made
between provision-funded and externally funded pension plans.

14

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Pension provisions are measured on the basis of the following assumptions:

million

Dec. 31, 2014

Dec. 31, 2013

Discount rate

4.54%

4.89%

Salary trend

3.30%

3.32%

Wage/pension trend

1.80%

1.80%

Fluctuation

0.75%

0.75%

2005 G mortality tables

2005 G mortality tables

Basis of calculation

RV-AltersgrenzenRV-Altersgrenzenanpassungsgesetz
anpassungsgesetz
(German Act to Adapt
(German Act to Adapt
the Standard Retirement the Standard Retirement
Age to Reflect
Age to Reflect
Demographic Trends and Demographic Trends and
to Strengthen the
to Strengthen the
Funding Basis for the
Funding Basis for the
Statutory Pension
Statutory Pension
Insurance System) 2007 Insurance System) 2007

Age limits

The percentage figure used for the salary trend takes into account increases attributable to career development, in
addition to regular salary increases.
The breakdown of pension obligations into unfunded and externally funded obligations, as well as the offsetting of the
externally funded component is presented in the balance sheet as follows:

million

Dec. 31, 2014

Dec. 31, 2013

Cost of the pension fund

2,749

2,362

Fair value of the pension fund

2,853

2,438

Settlement amount of the obligations in the pension fund model (fair value)

2,853

2,438

Externally funded pension obligation

Offset against the fair value of the pension fund (in accordance with section 246(2) of the HGB)
Provision-funded pension obligation
Settlement amount of the obligations outside the pension fund model

13,087

12,424

Pension provisions reported in the balance sheet

13,087

12,424

Externally funded pension benefits

The fund assets of externally funded pension obligations are measured at fair value. The fair value of the pension fund
exceeds the minimum benefits awarded in connection with the corresponding post-employment obligation, meaning
that these are also offset in the amount of the pension funds fair value. Since 1996, the occupational pension
arrangements of Volkswagen AG have been based on a specially developed expense-related pension model. With effect
from January 1, 2001, this model was developed into a pension fund, with the annual remuneration-linked
contributions being invested in funds by Volkswagen Pension Trust e.V., Wolfsburg, as the trustee. By investing in funds,
this model offers an opportunity for increasing benefit entitlements, while at the same time fully safeguarding them.

15

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

The following amounts were offset in the income statement:

million

2014

2013

Reinvested distributions from the pension fund

159

69

Measurement of the pension fund

Change in value
Adjustment of externally funded pension obligations in profit or loss
Balance of income and expenses

28

187

72

187

72

Other provisions

Other provisions include provisions for warranties (3.8 billion), personnel expenses (2.9 billion mainly for longservice jubilees, special benefits, partial retirement and other workforce costs) and other selling expenses
(2.4 billion). Provisions in the amount of 2 million were recognized for the obligation to return emission certificates.
Provisions for personnel expenses include liabilities relating to employee Time Assets. Volkswagen AG has been
issuing Time Assets as a retirement benefit concept for working life planning since January 1, 1998. This allows
employees to acquire Time Assets, which represent liabilities for Volkswagen AG. An approved fund (Time Assets
fund) was launched to safeguard employees claims. Investments are also made in a money market fund. By investing
in funds, the model offers an opportunity for increasing the value of Time Assets, while at the same time fully
safeguarding them.
The plan assets from both funds are measured at fair value in accordance with section 253(1) of the HGB. The fair value
of offset assets in the Time Assets fund was determined by reference to market prices (stock market prices) in an active
market. Fund assets and liabilities relating to Time Assets are offset:

million

Dec. 31, 2014

Dec. 31, 2013

Cost of the Time Asset fund

1,739

1,490

Fair value of the Time Asset fund

1,662

1,412

Settlement amount of the Time Asset obligation

1,662

1,412

2014

2013

94

44

12

Balance of the Time Asset fund and the settlement amount of the Time Asset obligation

The following amounts were offset in 2014:

million

Reinvested distributions from the Time Asset fund

Measurement of the Time Asset fund
Change in value
Settlement amount of the Time Asset obligation
Balance of the Time Asset fund and the settlement of the Time Asset obligation

16

95

56

95

56

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Unwinding of the discount/discounting

An additional discount of 211 million should have been recognized on the provisions as of December 31, 2009 in the
course of the transition to the new HGB. Volkswagen AG exercised the option to continue to recognize the higher level
of provisions. As of December 31, 2014, the unrecognized discount on this legacy balance amounted to under
1 million.
(10) LIABI LITI ES

Total
Dec. 31, 2014

million

Due within 1 year

Total
Dec. 31, 2013

Due within 1 year

1,003

419

419

48

48

44

44

2,641

2,641

2,277

2,277

Type of liability
Liabilities to banks
Payments received on account of orders
Trade payables
Liabilities to affiliated companies

51,315

24,148

48,555

23,358

Liabilities to other investees and investors

382

382

151

151

Other liabilities

973

657

1,035

683

(146)

(146)

(164)

(164)

of which taxes
of which social security

(16)

(16)

(16)

(16)

56,362

27,879

52,481

26,932

Liabilities to affiliated companies include liabilities to VIF attributable to convertible notes. Further information on the
convertible notes can be found in note (5) subscribed capital.
In March 2014, Volkswagen AG placed unsecured subordinated hybrid notes with an aggregate principal amount
of 3 billion via a subsidiary (VIF; issuer). The perpetual hybrid notes were issued in two tranches and can be called by
the issuer. The first call date for the first tranche (1.25 billion and a coupon of 3.75%) is after seven years, and the
first call date for the second tranche (1.75 billion and a coupon of 4.625%) is after twelve years.
1,300 million (previous year: 1,102 million) of the liabilities to affiliated companies and 12 million
(previous year: 39 million) of the liabilities to other investees and investors relate to trade payables. 48,189
million (previous year: 45,086 million) of the liabilities is interest-bearing.
Standard retention of title applies to the liabilities from deliveries of goods contained in the amounts shown
above. Real estate liens in the amount of 800 million are used to secure liabilities to employees (425 million).
These are reported under other liabilities.
Liabilities due after more than five years total 7,598 million. This figure comprises liabilities to banks (989
million), liabilities to affiliated companies (6,529 million; previous year: 4,170 million) and other liabilities
(80 million; previous year: 75 million).

17

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Contingencies and commitments

million

Dec. 31, 2014

Dec. 31, 2013

Contingent liabilities from guarantees

97

12

Contingent liabilities from warranties

35,540

32,782

(3,067)

(2,883)

of which relating to affiliated companies

Granting of security for third-party liabilities, other contingent liabilities

1,908

2,504

37,545

35,298

Contingent liabilities from warranties relate primarily to guarantees given to creditors of subsidiaries and for bonds
issued by these subsidiaries. Volkswagen AG has guaranteed to MAN SE that Truck & Bus GmbH will be managed and
provided with the necessary financial resources to ensure that Truck & Bus GmbH is able to discharge its obligations
under section 5 of the control and profit and loss transfer agreement with MAN SE.
Risk assessment of the settlement of contingent liabilities

Volkswagen AG provides guarantees for the capital market issues of the finance companies, for development loans
from supranational financial institutions and, in specific cases, for loans to newly formed subsidiaries. Volkswagen AG
manages its subsidiaries in such a way that they can discharge their financial obligations at any time. In addition to the
preparation of a monthly liquidity report for Volkswagen AG, regular financial reviews are held during which the
variances between the actual and projected liquidity are analyzed and the necessary corrective measures are
implemented. Based on this information, the Company sees no risk of a claim being brought under the guarantees
provided.
Transactions not included in the balance sheet (section 285 no. 3 of the HGB)

Volkswagen AG finances the majority of its trade receivables from foreign affiliated companies and certain selected
non-Group importers on the basis of nonrecourse factoring via its subsidiary Volkswagen Group Services S. A.,
Brussels, or Volkswagen Finance Belgium S. A., Brussels.
Selected receivables from partners of the domestic sales organization are financed on the basis of nonrecourse
factoring via Volkswagen Bank GmbH, Braunschweig. The amount concerned was 35.9 billion in the fiscal year. The
Company received liquid funds in this amount. These transactions do not lead to any specific new risks.
Volkswagen AG sells a small number of vehicles, mainly to car rental companies, subject to the obligation to
repurchase them for a predefined price after a fixed period of time. This was the case for approximately 12,900
vehicles worth approximately 0.2 billion in total as of December 31, 2014. Provisions are recognized for the risk
arising from potential differences between the agreed prices and the market prices when such vehicles are marketed
in the future.
Other financial commitments

million

Loan commitments
Rental and leasing agreements
Management agreements

Dec. 31, 2014

Due 2015

Due 2016 - 2019

Due after 2019

15,889

15,889

938

249

385

304

62

47

15

16,889

16,185

400

304

Affiliated companies account for 15,882 million of loan commitments, 181 million of rental and leasing agreements
and 20 million of management agreements.

18

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

million

Loan commitments
Rental and leasing agreements
Management agreements

Dec. 31, 2013

Due 2014

Due 2015 - 2018

Due after 2018

15,585

15,585

867

222

337

308

66

46

20

16,518

15,853

357

308

Affiliated companies account for 15,578 million of loan commitments, 214 million of rental and leasing agreements
and 19 million of management agreements.
The other financial obligations item contains long-term rental and leasing agreements for storage, logistics and office
space, test tracks, as well as sponsorship and advertising agreements, which are common for the industry. These
transactions do not lead to any specific new risks. Other financial obligations to Porsche SE from guarantee fees in the
amount of 14 million exist until 2019. Around 52 hectares of land (carrying amount 7 million) are encumbered by
heritable building rights. In accordance with Art. 5(10) of the statutes of the Einlagensicherungsfonds (Deposit
Protection Fund), Volkswagen AG has given an undertaking to indemnify Bundesverband deutscher Banken e.V.,
Cologne, against any losses incurred that are attributable to measures taken by it in favor of a majority-owned bank.
Volkswagen AG has liabilities from its investments in commercial partnerships.
The purchase commitment for capital expenditure projects is within the normal levels.
Contingent liabilities

The new co-investor in LeasePlan was granted an option to put back the shares to Volkswagen AG at the original selling
price until January 12, 2012. On November 18, 2013, the option was extended until January 12, 2016. The nominal
value of this option amounts to 1,477 million. Its value as of December 31, 2014 amounted to 0.3 million.
The shareholders of Original Teile Logistik GmbH & Co. KG, Baunatal (OTLG), were granted a put option that
entitles them to tender their shares in OTLG to Volkswagen AG until December 31, 2025. The value of this obligation
amounted to 0.1 billion as of the reporting date.

19

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Disclosures on derivatives
MEASUREMENT METHODS

The fair values of the derivatives generally correspond to the market or quoted market price. If no active market exists,
fair value is determined using valuation techniques, such as by discounting the future cash flows at the market interest
rate, or by using recognized option pricing models, and verified by confirmations from the banks that handle the
transactions. The calculations were based on the following term structures:

in %

CHF

CZK

EUR

GBP

JPY

MXN

RUB

SEK

USD

Interest rate
for six
months

0.032

0.350

0.129

0.583

0.170

3.541

25.781

0.289

0.272

Interest rate
for one year

0.009

0.522

0.117

0.641

0.157

3.845

20.075

0.257

0.431

Interest rate
for five years

0.063

0.530

0.359

1.442

0.220

5.234

12.990

0.645

1.755

Interest rate
for ten years

0.518

0.870

0.813

1.847

0.516

5.865

11.970

1.263

2.256

D E R I VAT I V E S

Currency forwards, currency options, commodity futures, cross-currency swaps and interest rate swaps are used as
hedging instruments. All instruments serve to hedge currency, interest rate and commodity price risk exposures of
hedged items attributable to the real economy, independently of whether or not they are included in hedge accounting.
The following table shows the hedging volume of the financial instruments not included in hedge accounting. Provisions
are recognized for hedging instruments with a negative fair value; hedging instruments with a positive fair value are not
recognized as assets.

million

NOTIONAL AMOUNT

Hedged risks

Currency futures contracts

of which: currency purchases

FAIR VALUE

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

3,099

2,493

273

31

2,784

2,292

276

12

43

of which: positive fair values

negative fair values
of which: currency sales

315

202

of which: positive fair values

negative fair values

39

Currency option contracts

671

986

2,742

2,030

positive fair values

Commodity futures contracts
of which: positive fair values
negative fair values

20

31

208

210

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

BALANC E SH EET ITEMS A N D CARRYI NG A MOU NTS

Derivatives not included in hedges are contained in the following balance sheet items at the carrying amounts shown:

million

CARRYING AMOUNT

Type

Option premiums

Balance sheet item

Dec. 31, 2014

Dec. 31, 2013

28

Other assets

Expected losses from open currency forwards

Other provisions

44

Expected losses from open commodity future contracts

Other provisions

208

210

D E R I VAT I V E S I N C L U D E D I N H E D G E S

Explanations of the risks hedged, the hedging strategy and the highly probable forecast transactions are included in
the management report.
H E D G E S O F C U R R E N C Y, I N T E R E ST R AT E A N D C O M M O D I T Y P R I C E R I S K E X P O S U R E S

The following risk exposures are included in hedge accounting:

million

NOTIONAL AMOUNT

Hedged risks

Currency risk from assets (cross currency swaps, currency forwards)

and forecasted transactions

FAIR VALUE

Dec. 31, 2014

Dec. 31, 2013

750

654

negative fair values

Dec. 31, 2014

Dec. 31, 2013

26

15

3,155

1,457

2,461

2,225

25

negative fair values

positive fair values

63

79

11

27

positive fair values

Currency risk from forecast transactions

94,896

68,269

negative fair values

positive fair values
Currency option contracts

399

618

negative fair values

positive fair values
Commodity futures contracts

931

Currency risk from open transactions

431

negative fair values

positive fair values

719

320

A portfolio approach is used to hedge currency risk exposures, under which expected cash inflows and outflows in
foreign currencies are offset in order to hedge the net position. Since the volume of the hedges is lower than the
volume of the planned commodity purchases and sales, there is a strong presumption that the changes in cash flows
from hedging instruments in the future will offset the effects relating to commodity purchases and sales. Furthermore,
the extent of hedging decreases the later the commodity purchase or sale is planned within the planning period. All
hedges were recognized using the net hedge presentation method. The recognized hedges were 100% effective.

21

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Intragroup loans are hedged by combining cross-currency swaps with interest rate swaps in micro hedges; the term of
the hedge is based on the term of the underlying transaction. The effectiveness of the hedge is assessed prospectively
using the critical terms match method and retrospectively using the dollar offset method. In one case, a micro hedge
was formed from a cross-currency swap and an approved loan. This was entered into between Volkswagen AG and a
subsidiary and is essential to the subsidiarys business development.
Micro hedges, macro hedges and portfolio hedges are recognized for the forecast transactions. Their effectiveness
is assessed prospectively using the critical terms match method and retrospectively using the dollar offset method.
With respect to the hedging of forecast transactions, risk exposures in the amount of 32,485 million are hedged by
micro hedges, 61,361 million by macro hedges and 99 million by portfolio hedges.
Executory contracts and forecast transactions mainly relate to planned commodity purchases in foreign currency
and revenue from vehicle sales that are highly probable in the coming five years. An insignificant amount of individual
planned sales and purchases also relates to periods beyond this. Currency risk exposures relating to executory
contracts are hedged by micro hedges.
H E DGI N G OF CU R R E NCY A N D COMMO DITY PR IC E R IS K EX PO SU R E S FOR SU B SI D IA R I ES

Volkswagen AG combines the currency and purchase price risk exposures of certain subsidiaries with its own
exposures as part of uniform planning in order to hedge them using currency forwards, currency options and
commodity futures with external partners. The notional amounts of the aggregate hedging transactions entered into by
Volkswagen AG for forecast transactions and planned commodity purchases therefore also includes amounts
attributable to consolidated subsidiaries. They are allocated to subsidiaries either via hedging transactions between
the subsidiary and Volkswagen AG that mirror the external hedging transactions, or by the subsidiary participating in
the gain or loss when the hedging transaction falls due.
The term and method used to assess the effectiveness of hedging transactions entered into between Volkswagen AG
and a subsidiary are the same as for external hedging transactions. Hedge accounting is applied only to micro hedges.
The underlying is defined as the entire hedging transaction or a part of the hedging transaction entered into between
Volkswagen AG and external partners.

22

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Derivatives

The following table shows the hedging volume attributable to consolidated subsidiaries that is not included in hedge
accounting:

million

NOTIONAL AMOUNT

Hedged risks

FAIR VALUE

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2013

148

119

15

146

117

Currency futures contracts

of which: currency purchases
of which: positive fair values
negative fair values
of which: currency sales

negative fair values

25

39

146

117

positive fair values

Commodity futures contracts

of which: positive fair values

Currency option contracts

15

of which: positive fair values

negative fair values

11

12

Balance sheet items and carrying amounts

The carrying amounts of hedges not included in hedge accounting and attributable to subsidiaries are contained in the
following balance sheet items:

million

CARRYING AMOUNT

Type

Balance sheet item

Option premiums

Dec. 31, 2014

Dec. 31, 2013

Other assets

Expected losses from open currency forwards

Other provisions

Expected losses from open commodity future contracts

Other provisions

11

12

Hedging of currency and commodity price risk exposures

The following exposures were hedged for subsidiaries and included in hedge accounting:

million
Hedged risks

Currency risk from forecast transactions

DEC. 31, 2014

Hedging instrument

Amount hedged

Currency futures contracts

33,436

1,424

535

Currency option contracts

399

Commodity futures contracts

931

63

34,766

1,486

538

23

Positive fair value Negative fair value

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Income Statement Disclosures

(11) SALES

million

2014

2013

Germany

26,029

37.7

24,415

37.2

Europe (excl. Germany)

28,943

42.0

26,397

40.2

North America

3,592

5.2

3,878

5.9

South America

886

1.3

1,021

1.6

Africa

1,450

2.1

1,525

2.3

Asia-Pacific

8,070

11.7

8,351

12.7

68,971

100.0

65,587

100.0

45,538

66.0

43,577

66.4

5,769

8.4

5,806

8.9

17,664

25.6

16,204

24.7

68,971

100.0

65,587

100.0

by region

by segment
Vehicle sales
Genuine parts
Other sales

Other sales relate primarily to materials and other intragroup deliveries to subsidiaries and joint ventures.
( 1 2 ) OT H E R O P E R AT I N G I N C O M E

million

Other operating income

of which income from the reversal of special tax-allowable reserves

2014

2013

4,626

4,287

(8)

(6)

Other operating income relates primarily to cost allocations amounting to 1.7 billion (previous year: 1.5 billion),
foreign currency translation of goods and services deliveries amounting to 1.7 billion (previous year: 1.4 billion) and
income from the reversal of provisions amounting to 0.6 billion (previous year: 0.9 billion). Income attributable to
previous fiscal years amounted to 1.0 billion (previous year: 1.1 billion). Special tax-allowable reserves in the
amount of 8 million (previous year: 6 million) were reversed.
( 1 3 ) OT H E R O P E R AT I N G E X P E N S E S

million

Other operating expenses

2014

2013

3,756

3,344

Other operating expenses primarily comprise foreign currency translation expenses (1.7 billion; previous year:
1.4 billion), consulting expenses attributable to subsidiaries and services allocated to Volkswagen AG (1.4 billion,
previous year 1.2 billion), which were in turn recharged to subsidiaries. Foreign currency translation expenses
mainly relate to recognized exchange rate losses and exchange rate losses from the translation of operating receivables
and liabilities that have not been offset. Expenses attributable to previous fiscal years amounted to 0.6 billion
(previous year: 1.0 billion), and mainly relate to warrant expenses.

24

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

( 1 4 ) F I N A N C I A L R E S U LT

million

2014

2013

Income and expenses from investments

8,373

7,741

Interest income and expense

701

489

1,450

1,109

6,222

6,144

2014

2013

2,497

2,229

Other financial result

I N C O M E A N D E X P E N S E S F R O M I N V E ST M E N T S

million

Income from investments

of which from affiliated companies
Income from profit and loss transfer agreements
Other investment income
Other investment expenses
Cost of loss absorption

(715)

(601)

7,038

7,210

39

486

632

715

1,066

8,373

7,741

Income from investments primarily comprises income from the Chinese joint ventures, Volkswagen (China)
Investment Company Ltd., Beijing, China, VW Logistics GmbH & Co. OHG, Wolfsburg and VW of South Africa (Pty.)
Ltd., Uitenhage, South Africa.
Income from profit and loss transfer agreements, which includes allocations of income-related taxes, primarily
comprises income from AUDI AG, Porsche Holding Stuttgart GmbH, VW Financial Services AG, Braunschweig,
AutoVision GmbH, Wolfsburg, VW Sachsen GmbH, Zwickau and VW Kraftwerk GmbH, Wolfsburg.
Other investment expenses comprise the transfer of investment income to AUDI AG. The cost of loss absorption
relates almost exclusively to losses assumed by Truck & Bus GmbH.

Interest income and expense

million

2014

Income from other investments and long-term loans

of which from affiliated companies
Other interest and similar income
of which from affiliated companies
Interest and similar expenses
of which to affiliated companies

2013

202

143

(23)

(26)

333

393

(255)

(338)

1,236

1,025

(1,097)

(933)

701

489

Interest and similar expenses mainly relate to interest expenses to affiliated companies, interest from additional tax
payments, as well as expenses from the factoring business (financing of non-interest-bearing trade receivables).

25

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Other financial result

million

2014

2013

Interest component of pension expenses

1,204

861

Unwinding of the discount on provisions

240

230

Discounting of provisions
Unwinding of the discount on/discounting of liabilities

20

1,450

1,109

Other taxes

The other taxes allocated to the consuming functions amounted to 45 million (previous year: 39 million). They relate
to land taxes, vehicle taxes and VAT.

26

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Deferred taxes

Offsetting deferred tax assets and liabilities in the fiscal year resulted in an excess of tax assets in Volkswagen AGs
consolidated tax group. This represents a future tax benefit and is not recognized as an asset. The following tables show
the changes in deferred taxes in the current and past fiscal year:
Deferred taxes in 2014

million

DEFERRED TAX ASSETS

Item

DEFERRED TAX LIABILITIES

Difference

Tax

Difference

Tax

Fixed assets

2,846

847

Current assets

1,352

403

350

104

Assets

Other assets
Liabilities
Special reserves

10

Provisions

15,317

4,565

Liabilities

1,951

581

69

21

Deferred income items

Total

6,419

110

Offset

110

110

Net deferred tax assets

6,309

Deferred taxes in 2013

million

DEFERRED TAX ASSETS

Item

DEFERRED TAX LIABILITIES

Difference

Tax

Difference

Tax

Fixed assets

2,690

Current assets

1,778

800

46

14

529

317

13

94

Assets

Other assets
Liabilities
Special reserves

Provisions

11,703

3,487

Liabilities

1,856

553

61

18

Deferred income items

Total

5,393

111

Offset

111

111

Net deferred tax assets

5,283

27

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

N OT I C E S A N D D I S C L O S U R E O F C H A N G E S R E G A R D I N G T H E O W N E R S H I P O F V OT I N G R I G H T S I N V O L K S WA G E N A G I N
A C C O R D A N C E W I T H S E C T I O N 2 1 A N D S E C T I O N 2 6 O F T H E W E RT PA P I E R H A N D E L S G E S E T Z ( W P H G G E R M A N
SECURITI ES TRADING ACT)

PORSCHE

1) Porsche Automobil Holding SE, Stuttgart, Germany has notified us in accordance with section 21(1) of the WpHG
that its share of the voting rights in Volkswagen Aktiengesellschaft, Wolfsburg, Germany, exceeded the threshold of 50%
on January 5, 2009 and amounted to 50.76% (149,696,680 voting rights) at this date.
2) The following persons notified us in accordance with section 21(1) of the WpHG that their share of the voting rights
in Volkswagen Aktiengesellschaft in each case exceeded the threshold of 50% on January 5, 2009 and in each case
amounted to 50.76% (149,696,680 voting rights) at this date. All of the above-mentioned 149,696,680 voting rights
are attributable to each of the persons making the notification in accordance with section 22(1) sentence 1 no. 1 of the
WpHG. The voting rights attributed to the persons making the notifications are held via subsidiaries within the
meaning of section 22(3) of the WpHG, whose attributed share of the voting rights amounts to 3% or more and whose
names are given in brackets:
Mag. Josef Ahorner, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Mag. Louise Kiesling, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Prof. Ferdinand Alexander Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Oliver Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Kai Alexander Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),

28

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Mark Philipp Porsche, Austria

(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Gerhard Anton Porsche, Austria
(Ferdinand Porsche Privatstiftung, Salzburg/Austria; Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise
Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander
Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche
GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Ing. Hans-Peter Porsche, Austria
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Peter Daniell Porsche, Austria
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung
GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Wolfgang Porsche, Germany
(Familie Porsche Privatstiftung, Salzburg/Austria; Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter
Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Wolfgang Porsche GmbH,
Grnwald/Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE,
Stuttgart/Germany),
Ferdinand Porsche Privatstiftung, Salzburg/Austria
(Ferdinand Porsche Holding GmbH, Salzburg/Austria; Louise Daxer-Pich GmbH, Salzburg/Austria; Louise DaxerPiech GmbH, Grnwald/Germany; Prof. Ferdinand Alexander Porsche GmbH, Salzburg/Austria; Ferdinand Alexander
Porsche GmbH, Grnwald/Germany; Gerhard Anton Porsche GmbH, Salzburg/Austria; Gerhard Porsche GmbH,
Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil
Holding SE, Stuttgart/Germany),
Familie Porsche Privatstiftung, Salzburg/Austria
(Familie Porsche Holding GmbH, Salzburg/Austria; Ing. Hans-Peter Porsche GmbH, Salzburg/Austria; Hans-Peter
Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil
Holding SE, Stuttgart/Germany),
Ferdinand Porsche Holding GmbH, Salzburg/Austria
(Louise Daxer-Pich GmbH, Salzburg/Austria; Louise Daxer-Piech GmbH, Grnwald/Germany; Prof. Ferdinand
Alexander Porsche GmbH, Salzburg/Austria; Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Gerhard
Anton Porsche GmbH, Salzburg/Austria; Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-DaxerPiech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Familie Porsche Holding GmbH, Salzburg/Austria
(Ing. Hans-Peter Porsche GmbH, Salzburg/Austria; Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche
Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),

29

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Louise Daxer-Pich GmbH, Salzburg/Austria

(Louise Daxer-Piech GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany; Familien
Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany),
Prof. Ferdinand Alexander Porsche GmbH, Salzburg/Austria
(Ferdinand Alexander Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech Beteiligung GmbH,
Grnwald/ Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Gerhard Anton Porsche GmbH, Salzburg/Austria
(Gerhard Porsche GmbH, Grnwald/Germany; Familien Porsche-Daxer-Piech
Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),

Beteiligung

GmbH,

Louise Daxer-Piech GmbH, Grnwald/Germany

(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Ferdinand Alexander Porsche GmbH, Grnwald/Germany
(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Gerhard Porsche GmbH, Grnwald/Germany
(Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/
Germany),
Ing. Hans-Peter Porsche GmbH, Salzburg/Austria
(Hans-Peter Porsche GmbH, Grnwald/Germany; Familie Porsche Beteiligung GmbH, Grnwald/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany),
Hans-Peter Porsche GmbH, Grnwald/Germany
(Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Wolfgang Porsche GmbH, Grnwald/Germany
(Familie Porsche Beteiligung GmbH, Grnwald/Germany; Porsche Automobil Holding SE, Stuttgart/Germany),
Familien Porsche-Daxer-Piech Beteiligung GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Familie Porsche Beteiligung GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Porsche GmbH, Stuttgart/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),
Dr. Hans Michel Pich, Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Hans Michel Piech GmbH, Grnwald/Germany; Dr. Hans
Michel Pich GmbH, Salzburg/Austria),
Dr. Hans Michel Pich GmbH, Salzburg/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Hans Michel Piech GmbH, Grnwald/Germany),
Hans Michel Piech GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany),

30

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Dipl.-Ing. Dr. h.c. Ferdinand Pich, Austria

(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany;
Dipl.-Ing. Dr. h.c. Ferdinand Pich GmbH, Salzburg/Austria; Ferdinand Karl Alpha Privatstiftung, Vienna/Austria),
Ferdinand Karl Alpha Privatstiftung, Vienna/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany;
Dipl.-Ing. Dr. h.c. Ferdinand Pich GmbH, Salzburg/Austria),
Dipl.-Ing. Dr. h.c. Ferdinand Pich GmbH, Salzburg/Austria
(Porsche Automobil Holding SE, Stuttgart/Germany; Ferdinand Piech GmbH, Grnwald/Germany),
Ferdinand Piech GmbH, Grnwald/Germany
(Porsche Automobil Holding SE, Stuttgart/Germany).
3) Porsche Holding Gesellschaft m.b.H., Salzburg/Austria, and Porsche GmbH, Salzburg/Austria, notified us in
accordance with section 21(1) of the WpHG that their share of the voting rights in Volkswagen Aktiengesellschaft in
each case exceeded the threshold of 50% on January 5, 2009 and in each case amounted to 53.13% (156,702,015
voting rights) at this date.
All the above-mentioned 156,702,015 voting rights are attributable to Porsche Holding Gesellschaft m.b.H. in
accordance with section 22(1) sentence l no. 1 of the WpHG. The companies via which the voting rights are actually
held and whose attributed share of the voting rights amounts to 3% or more are:
Porsche GmbH, Salzburg/Austria;
Porsche GmbH, Stuttgart/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany.
Of the above-mentioned 156,702,015 voting rights, 50.76% of the voting rights (149,696,753 voting rights) are
attributable to Porsche GmbH, Salzburg/Austria, in accordance with section 22(1) sentence 1 no. 1 of the WpHG.
The companies via which the voting rights are actually held and whose attributed share of the voting rights
amounts to 3% or more are:
Porsche GmbH, Stuttgart/Germany;
Porsche Automobil Holding SE, Stuttgart/Germany.
4) Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG, Stuttgart, Germany has notified us in accordance with section
21(1) of the WpHG that its (indirect) share of the voting rights in Volkswagen Aktiengesellschaft, Wolfsburg,
Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on
September 29, 2010 and amounted to 50.74% of the voting rights (149,696,680 voting rights) at this date.
Of this figure, 50.74% of the voting rights (149,696,680 voting rights) are attributable to Porsche Wolfgang
1. Beteiligungs GmbH & Co. KG in accordance with section 22(1) sentence 1 no. 1 of the WpHG.
The voting rights attributed to Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG are held via the following
enterprises controlled by it, whose share of the voting rights in Volkswagen Aktiengesellschaft amounts to 3% or
more in each case: Wolfgang Porsche GmbH, Grnwald, Familie Porsche Beteiligung GmbH, Grnwald, Porsche
Automobil Holding SE, Stuttgart.
These voting rights were not reached by exercise of purchase rights resulting from financial instruments according to
25 section 1 sentence 1 of the Wertpapierhandelsgesetz (Securities Trading Law).

31

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

5) We received the following notification in accordance with article 25 WpHG on February 1, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Porsche Piech Holding GmbH, Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: January 31, 2013

6.

Reportable share of voting rights: 53.10% (corresponds to 156,701,942 voting rights)

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG:
2.00% (corresponds to 5,901,796 voting rights)
of which held indirectly: 2.00% (corresponds to 5,901,796 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 53.10% (corresponds to 156,701,942
voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25 WpHG:

Chain of controlled companies: Porsche Gesellschaft m.b.H., Salzburg; Porsche Piech GmbH & Co. KG,
Salzburg
Exercise period: from December 31, 2022

6) We received the following notification in accordance with article 25 WpHG on February 1, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Porsche Gesellschaft m.b.H., Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: January 31, 2013

6.

Reportable share of voting rights: 53.10% (corresponds to 156,701,942 voting rights)

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG:
2.00% (corresponds to 5,901,796 voting rights)
of which held indirectly: 2.00% (corresponds to 5,901,796 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 53.10% (corresponds to 156,701,942
voting rights)

32

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

8.

Further information on (financial/other) instruments in accordance with Article 25 WpHG:

Chain of controlled companies: Porsche Piech GmbH & Co. KG, Salzburg
Exercise period: from December 31, 2022

7) We received the following notification in accordance with article 25a, Section 1 WpHG on August 2, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: LK Holding GmbH, Salzburg, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: July 30, 2013

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG:
0% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Spaltungs- und bernahmsvertrag
Maturity: n/a
Expiration date: n/a

8) We received the following notification in accordance with article 25a, Section 1 WpHG on August 12, 2013:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: LK Holding GmbH, Salzburg, Austria

3.

Reason for notification: falling below threshold

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: August 10, 2013

6.

Reportable share of voting rights: 0.00% (corresponds to 0 voting rights) calculated from the following total
number of voting rights issued: 295,089,818

33

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
0.00% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG:
0% (corresponds to 0 voting rights)
of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to 149,696,681
voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Maturity: n/a
Expiration date: n/a

9) On August 12, 2013, LK Holding GmbH, Salzburg, Austria, has notified us in accordance with article 21, section 1
of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg, Germany,
exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on August 10,
2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date.
Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to LK Holding GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to LK Holding GmbH are held via the following enterprises controlled by it, whose
share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case: Porsche
Automobil Holding SE, Stuttgart; Familien Porsche-Kiesling Beteiligung GmbH, Grnwald; Louise Daxer-Piech
GmbH, Grnwald.
10) On August 12, 2013, Louise Daxer-Piech GmbH, Salzburg, Austria, has notified us in accordance with article 21,
section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, fell below the thresholds of 50%, 30%, 25%, 20%, 15%, 10%, 5% and 3% of the voting rights on
August 10, 2013 and amounted to 0% of the voting rights (0 voting rights) at this date.
11) On September 11, 2013, Ahorner Alpha Beteiligungs GmbH, Grnwald, Germany, has notified us in accordance
with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting
rights on September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this
date. Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Alpha
Beteiligungs GmbH in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Alpha Beteiligungs GmbH are held via the following enterprises controlled
by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Porsche Automobil Holding SE, Stuttgart.

34

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

12) On September 11, 2013, Ahorner Beta Beteiligungs GmbH, Grnwald, Germany, has notified us in accordance
with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting
rights on September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this
date. Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Beta
Beteiligungs GmbH in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Beta Beteiligungs GmbH are held via the following enterprises controlled
by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Ahorner Alpha Beteiligungs GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.
13) On September 11, 2013, Louise Daxer-Piech GmbH, Salzburg, Austria, has notified us in accordance with article
21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on
September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Louise Daxer-Piech GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Louise Daxer-Piech GmbH are held via the following enterprises controlled by it,
whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Ahorner Beta Beteiligungs GmbH, Grnwald; Ahorner Alpha Beteiligungs GmbH, Grnwald; Porsche Automobil
Holding SE, Stuttgart.
14) On September 11, 2013, Ahorner Holding GmbH, Salzburg, Austria, has notified us in accordance with article 21,
section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg,
Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting rights on
September 11, 2013 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date. Of this
figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Ahorner Holding GmbH in
accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Ahorner Holding GmbH are held via the following enterprises controlled by it,
whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each case:
Louise Daxer-Piech GmbH, Salzburg, Austria; Ahorner Beta Beteiligungs GmbH, Grnwald; Ahorner Alpha
Beteiligungs GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.
15) On December 04, 2013, Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH, Stuttgart, Germany, has notified us
in accordance with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN
AKTIENGESELLSCHAFT, Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30%
and 50% of the voting rights on December 2, 2013 and amounted to 50.73% of the voting rights (149,696,681
voting rights) at this date. Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to
Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH in accordance with article 22, section 1, sentence 1 no. 1 of
the WpHG.
The voting rights attributed to Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH are held via the following
enterprises controlled by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3%
or more in each case: Porsche Wolfgang 1. Beteiligungs GmbH & Co. KG, Stuttgart; Wolfgang Porsche GmbH,
Stuttgart; Familie Porsche Beteiligung GmbH, Grnwald; Porsche Automobil Holding SE, Stuttgart.
16) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Wolfgang Porsche, Austria

3.

Reason for notification: threshold exceeded

35

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to 149,696,681
voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

17) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Ing. Hans-Peter Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

36

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

18) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Peter Daniell Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

37

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

19) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Ferdinand Oliver Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to 149,696,681
voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

20) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Kai Alexander Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

38

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

21) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Mag. Mark Philipp Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

39

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

22) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Gerhard Anton Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
50.73% (corresponds to 149,696,681 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

23) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Louise Kiesling, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

40

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG: 50.73% (corresponds to 149,696,681
voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility for third parties to acquire through
a structural agreement
Maturity: n/a
Expiration date: n/a

24) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Geraldine Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)
41

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

25) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Diana Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

26) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dr. Dr. Christian Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

42

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

6.
7.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818
Further information on the share of voting rights:
Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

27) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Dipl.-Design. Stephanie Porsche-Schrder, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

43

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

28) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Ferdinand Rudolf Wolfgang Porsche, Austria

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

29) We received the following notification in accordance with article 25a, Section 1 WpHG on April 30, 2014:
1.

Issuer: VOLKSWAGEN AKTIENGESELLSCHAFT, Berliner Ring 2, 38440 Wolfsburg, Germany

2.

Notifying party: Felix Alexander Porsche, Germany

3.

Reason for notification: threshold exceeded

4.

Notification thresholds affected: 5%, 10%, 15%, 20%, 25%, 30%, 50%

5.

Date threshold exceeded: April 30, 2014

44

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

6.

Reportable share of voting rights: 50.73% (corresponds to 149,696,681 voting rights) calculated from the
following total number of voting rights issued: 295,089,818

7.

Further information on the share of voting rights:

Share of voting rights resulting from (financial/other) instruments in accordance with article 25a WpHG:
50.73% (corresponds to 149,696,681 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights resulting from (financial/other) instruments in accordance with article 25 WpHG: 0%
(corresponds to 0 voting rights)
Of which held indirectly: 0% (corresponds to 0 voting rights)
Share of voting rights in accordance with articles 21 and 22 WpHG:
0% (corresponds to 0 voting rights)

8.

Further information on (financial/other) instruments in accordance with Article 25a WpHG:

Chain of controlled companies: ISIN or name/description of the (financial/other) instrument: Possibility to acquire through a structural
agreement
Maturity: n/a
Expiration date: n/a

30) On December 16, 2014, Porsche Wolfgang 1. Beteiligungsverwaltungs GmbH, Stuttgart, Germany, has notified us in
accordance with article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg, Germany, fell below the thresholds of 50%, 30%, 25%, 20%, 15%, 10%, 5% and 3%
of the voting rights on December 15, 2014 and amounted to 0% of the voting rights (0 voting rights) at this date.
31) On December 17, 2014, Dr. Wolfgang Porsche Holding GmbH, Salzburg, Austria, has notified us in accordance with
article 21, section 1 of the WpHG that its share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT,
Wolfsburg, Germany, exceeded the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 30% and 50% of the voting
rights on December 15, 2014 and amounted to 50.73% of the voting rights (149,696,681 voting rights) at this date.
Of this figure, 50.73% of the voting rights (149,696,681 voting rights) are attributable to Dr. Wolfgang Porsche
Holding GmbH in accordance with article 22, section 1, sentence 1 no. 1 of the WpHG.
The voting rights attributed to Dr. Wolfgang Porsche Holding GmbH are held via the following enterprises controlled
by it, whose share of the voting rights in VOLKSWAGEN AKTIENGESELLSCHAFT amounts to 3% or more in each
case: Wolfgang Porsche GmbH, Grnwald; Familie Porsche Beteiligung GmbH, Grnwald; Porsche Automobil
Holding SE, Stuttgart.

45

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Q ATA R

We have received the following notification:

(1) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding Luxembourg II S..r.l.,
Luxembourg, Luxembourg, that as per August 26, 2009 Qatar Holding Luxembourg II S..r.l. no longer held directly or
indirectly any financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen
below the threshold of 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial
instruments. If Qatar Holding Luxembourg II S..r.l. had held shares in Volkswagen AG instead of such financial
instruments it would have held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per August 26, 2009.
(2) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding Netherlands B.V., Amsterdam,
The Netherlands, that as per August 26, 2009 Qatar Holding Netherlands B.V. no longer held directly or indirectly any
financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen below the
threshold of 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If
Qatar Holding Netherlands B.V. had held shares in Volkswagen AG instead of such financial instruments it would have
held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per August 26, 2009.
We have received the following notification:
(1) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of the State of Qatar, acting by and through the
Qatar Investment Authority, Doha, Qatar, that its indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of
Volkswagen Aktiengesellschaft (40,440,274 voting rights) as per this date
(i)

6.93% (20,429,274 voting rights) of which have been obtained by the exercise by Qatar Holding LLC
of financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date
granting the right to acquire shares in Volkswagen Aktiengesellschaft, and

(ii)

all of which are attributed to the State of Qatar pursuant to section 22 (1) sentence 1 no. 1 WpHG.

(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of
Volkswagen Aktiengesellschaft (50,149,012 voting rights) as per this date
(i)

3.29% (9,708,738 voting rights) of which have been obtained by the exercise by Qatar Holding LLC
of financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date
granting the right to acquire shares in Volkswagen Aktiengesellschaft, and

(ii)

all of which are attributed to the State of Qatar pursuant to section 22 (1) sentence 1 no. 1 WpHG.

46

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Voting rights that are attributed to the State of Qatar pursuant to lit. (a) and (b) above are held via the following
entities which are controlled by it and whose attributed proportion of voting rights in Volkswagen
Aktiengesellschaft amount to 3% each or more:
(aa) Qatar Investment Authority, Doha, Qatar;
(bb) Qatar Holding LLC, Doha, Qatar;
(cc) Qatar Holding Luxembourg II S..r.l., Luxembourg, Luxembourg;
(dd) Qatar Holding Netherlands B.V., Amsterdam, The Netherlands.
(2) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of the Qatar Investment Authority, Doha, Qatar,
that its indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of
Volkswagen Aktiengesellschaft (40,440,274 voting rights) as per this date
(i) 6.93% (20,429,274 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the
right to acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the Qatar Investment Authority pursuant to section 22 (1) sentence 1 no. 1
WpHG.
(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of
Volkswagen Aktiengesellschaft (50,149,012 voting rights) as per this date
(i) 3.29% (9,708,738 voting rights) of which have been obtained by the exercise by Qatar Holding LLC of
financial instruments within the meaning of section 25 (1) sentence 1 WpHG on that date granting the
right to acquire shares in Volkswagen Aktiengesellschaft, and
(ii) all of which are attributed to the Qatar Investment Authority pursuant to section 22 (1) sentence 1 no. 1
WpHG.
Voting rights that are attributed to the Qatar Investment Authority pursuant to lit. (a) and (b) above are held via the
entities as set forth in (1) (bb) through (dd) which are controlled by it and whose attributed proportion of voting rights
in Volkswagen Aktiengesellschaft amount to 3% each or more.
(3) Pursuant to section 21 (1) WpHG we hereby notify for and behalf of Qatar Holding LLC, Doha, Qatar, that its direct
and indirect voting rights in Volkswagen Aktiengesellschaft
(a) exceeded the threshold of 10% on December 17, 2009 and amounted to 13.71% of the voting rights of
Volkswagen Aktiengesellschaft (40,440,274 voting rights) as per this date
(i) 6.93% (20,429,274 voting rights) of which have been obtained by the exercise of financial instruments
within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to acquire shares in
Volkswagen Aktiengesellschaft, and
(ii) 6.78% (20,011,000 voting rights) of which are attributed to Qatar Holding LLC pursuant to section 22 (1)
sentence 1 no. 1 WpHG.
(b) exceeded the threshold of 15% on December 18, 2009 and amounted to 17.00% of the voting rights of
Volkswagen Aktiengesellschaft (50,149,012 voting rights) as per this date

47

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

(i) 3.29% (9,708,738 voting rights) of which have been obtained by the exercise of financial instruments
within the meaning of section 25 (1) sentence 1 WpHG on that date granting the right to acquire shares in
Volkswagen Aktiengesellschaft, and
(ii) 6.78% (20,011,000 voting rights) of which are attributed to Qatar Holding LLC pursuant to section 22 (1)
sentence 1 no. 1 WpHG.
Voting rights that are attributed to Qatar Holding LLC pursuant to lit. (a) and (b) above are held via the entities as set
forth in (1) (cc) through (dd) which are controlled by it and whose attributed proportion of voting rights in Volkswagen
Aktiengesellschaft amount to 3% each or more.
We have received the following notification:
(1) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of the State of Qatar, acting by and through the
Qatar Investment Authority, Doha, Qatar, that as per December 18, 2009 the State of Qatar no longer held directly or
indirectly any financial instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen
below the thresholds of 15%, 10% and 5% of the voting rights of Volkswagen AG if it had held shares instead of those
financial instruments. If the State of Qatar had held shares in Volkswagen AG instead of such financial instruments it
would have held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per December 18, 2009.
(2) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of the Qatar Investment Authority, Doha, Qatar,
that as per December 18, 2009 the Qatar Investment Authority no longer held directly or indirectly any financial
instruments that grant the right to acquire shares in Volkswagen AG and would thus have fallen below the thres hold of
15%, 10% and 5% of the voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If
the Qatar Investment Authority had held shares in Volkswagen AG instead of such financial instruments it would have
held 0.00 % of the voting rights of Volkswagen AG (0 voting rights) as per December 18, 2009.
(3) Pursuant to section 25 (1) WpHG we hereby notify for and on behalf of Qatar Holding LLC, Doha, Qatar, that as per
December 18, 2009 Qatar Holding LLC no longer held directly or indirectly any financial instruments that grant the
right to acquire shares in Volkswagen AG and would thus have fallen below the threshold of 15%, 10% and 5% of the
voting rights of Volkswagen AG if it had held shares instead of those financial instruments. If Qatar Holding LLC had
held shares in Volkswagen AG instead of such financial instruments it would have held 0.00 % of the voting rights of
Volkswagen AG (0 voting rights) as per December 18, 2009.
We have received the following notification:
(1) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Luxembourg II S..r.l.,
Luxembourg, Luxembourg, that its indirect voting rights in Volkswagen Aktiengesellschaft exceeded the
thresholds of 10% and 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen
Aktiengesellschaft (50,149,012 voting rights) as per this date, all of which are attributed to Qatar Holding
Luxembourg II S..r.l. pursuant to section 22 (1) sentence 1 no.1 WpHG.
Voting rights that are attributed to Qatar Holding Luxembourg II S..r.l. are held via the following entities which are
controlled by it and whose attributed proportion of voting rights in Volkswagen Aktiengesellschaft amount to 3% each
or more:
(a) Qatar Holding Netherlands B.V., Amsterdam, The Netherlands;
(b) Qatar Holding Germany GmbH, Frankfurt am Main, Germany.
(2) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Netherlands B.V., Amsterdam,
The Netherlands, that its indirect voting rights in Volkswagen Aktiengesellschaft exceeded the thresholds of 10%
and 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen Aktiengesellschaft
(50,149,012 voting rights) as per this date, all of which are attributed to Qatar Holding Luxembourg II S..r.l.
pursuant to section 22 (1) sentence 1 no. 1 WpHG.

48

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Voting rights that are attributed to Qatar Holding Netherlands B.V. are held via the entity as set forth in (1) (b) which is
controlled by it and whose attributed proportion of voting rights in Volkswagen Aktiengesellschaft amounts to 3% or
more.
(3) Pursuant to section 21 (1) WpHG we hereby notify for and on behalf of Qatar Holding Germany GmbH, Frankfurt
am Main, Germany, that its direct voting rights in Volkswagen Aktiengesellschaft exceeded the thresholds of 3%,
5%, 10% and 15% on December 18, 2009 and amounted to 17.00% of the voting rights of Volkswagen
Aktiengesellschaft (50,149,012 voting rights) as per this date.
STAT E O F L O W E R S A XO N Y

The State of Lower Saxony notified us on January 5, 2015 that it held a total of 59,022,310 ordinary shares as of
December 31, 2014. It held 440 VW ordinary shares directly and 59,021,870 ordinary shares indirectly via
Hannoversche Beteiligungsgesellschaft mbH (HanBG), which is owned by the State of Lower Saxony.

49

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

R E C O N C I L I AT I O N O F N E T I N C O M E TO N E T R E TA I N E D P R O F I T S

million

Net income for the year

Retained profits brought forward

2014

2013

2,476

3,078

180

1,210

2,299

1,874

Appropriations to revenue reserves

to other revenue reserves
Net retained profits

Declining balance depreciation continues to be charged to net income. See page 8 for the amount incurred in the fiscal
year.
TOTA L E X P E N S E F O R T H E P E R I O D

Cost of materials

million

Cost of raw materials, consumables and supplies, and of purchased merchandise

Cost of purchased services

2014

2013

47,391

45,755

3,777

3,920

51,168

49,675

2014

2013

Wages and salaries

8,314

7,476

Social security, post-employment and other employee benefit costs

1,593

1,695

Personnel expenses

million

of which in respect of post-employment benefits

(359)

(564)

9,907

9,170

2014

2013

OT H E R D I S C L O S U R E S

The tax expense is attributable to the result from ordinary activities.

WRITE-DOW NS OF LONG-TERM FI NA NCIA L ASSETS

million

Affiliated companies
Other equity investments

See page 8 for further explanations.

50

106

29

114

29

A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

AV E R A G E N U M B E R O F E M P L OY E E S O F V O L K SWA G E N A G D U R I N G T H E Y E A R

2014

2013

Performance-related wage-earners

52,650

48,832

Time-rate wage-earners

18,191

18,376

Salaried employees

38,200

36,768

109,041

103,977

by group

Vocational trainees

4,650

4,492

113,691

108,468

Wolfsburg

62,028

59,400

Hanover

13,568

13,042

by plant

Braunschweig

6,625

6,185

Kassel

15,707

15,014

Emden

8,805

8,442

Salzgitter

6,958

6,385

113,691

108,468

Information about the composition of the Board of Management and the Supervisory Board, on changes in these
executive bodies and on the memberships of members of the Board of Management and the Supervisory Board of
other statutory supervisory boards and comparable supervisory bodies is contained in an annex to the notes.
R E L AT E D PA RT Y D I S C L O S U R E S

Related parties as defined by IAS 24 are natural persons and entities that Volkswagen AG has the ability to control or on
which it can exercise significant influence, or natural persons and entities that have the ability to control or exercise
significant influence on Volkswagen AG, or that are influenced by another related party of Volkswagen AG.
At 50.73%, Porsche SE held the majority of the voting rights in Volkswagen AG as of the reporting date. The
creation of rights of appointment for the State of Lower Saxony was resolved at the Extraordinary General Meeting of
Volkswagen AG on December 3, 2009. As a result, Porsche SE can no longer appoint the majority of the members of
Volkswagen AGs Supervisory Board for as long as the State of Lower Saxony holds at least 15% of Volkswagen AGs
ordinary shares. However, Porsche SE has the power to participate in the operating policy decisions of the Volkswagen
Group.
The contribution of Porsche SEs holding company operating business to Volkswagen AG on August 1, 2012 has the
following effects on the agreements between Porsche SE, Volkswagen AG and companies of the Porsche Holding
Stuttgart Group that existed prior to the contribution and were entered into on the basis of the Comprehensive
Agreement and its related implementation agreements:
>

Volkswagen AG continues to indemnify Porsche SE against certain financial guarantees issued by Porsche SE to
creditors of the companies belonging to the Porsche Holding Stuttgart Group up to the amount of its share in the
capital of Porsche Holding Stuttgart, which amounts to 100% since the contribution as of August 1, 2012. Porsche
Holding Finance plc, Dublin, Ireland, was contributed to the Volkswagen Group in the course of the transfer of
Porsche SEs holding company operating business. Since August 1, 2012, the indemnification therefore includes
financial guarantees issued by Porsche SE to creditors of Porsche Holding Finance plc, in relation to interest
payments on and the repayment of bonds in the aggregate amount of 310 million. As part of the contribution of
Porsche SEs holding company operating business to Volkswagen AG, Volkswagen AG undertook to assume standard
market liability compensation effective August 1, 2012 for guarantees issued to external creditors, whereby it is
indemnified internally.

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A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Volkswagen AG continues to indemnify Porsche SE internally against claims by the Einlagensicherungsfonds

(German deposit protection fund) after Porsche SE submitted an indemnification agreement required by the
Bundesverband deutscher Banken (Association of German Banks) to the Einlagensicherungsfonds in August 2009.
Volkswagen AG has also undertaken to indemnify the Einlagensicherungsfonds against any losses caused by
measures taken by the latter in favor of a bank in which Volkswagen AG holds a majority interest.
> Under certain conditions, Porsche SE continues to indemnify Porsche Holding Stuttgart, Porsche AG and their legal
predecessors against tax liabilities that exceed the obligations recognized in the financial statements of those
companies relating to periods up to and including July 31, 2009. In return, Volkswagen AG has undertaken in
principle to reimburse Porsche SE for any tax benefits or tax refunds of Porsche Holding Stuttgart, Porsche AG and
their legal predecessors and subsidiaries for tax assessment periods up to July 31, 2009. Based on the results of the
external tax audit for the assessment periods 2006 to 2008 that has now been completed, a compensation obligation
running into the high double-digit millions of euros would arise for Volkswagen AG. New information emerging in
the future from the external tax audit announced for the 2009 assessment period could result in an increase or
decrease in the potential compensation obligation.
>

Under the terms of the Comprehensive Agreement, Porsche SE and Volkswagen AG had granted each other put and
call options with regard to the remaining 50.1% interest in Porsche Holding Stuttgart held by Porsche SE until the
contribution of its holding company operating business to Volkswagen AG. Both Volkswagen AG (if it had exercised its
call option) and Porsche SE (if it had exercised its put option) had undertaken to bear the tax burden resulting from the
exercise of the options and any subsequent activities in relation to the equity investment in Porsche Holding Stuttgart
(e.g. from recapture taxation on the spin-off in 2007 and/or 2009). If tax benefits had accrued to Volkswagen AG,
Porsche Holding Stuttgart, Porsche AG, or their respective subsidiaries as a result of recapture taxation on the spin-off
in 2007 and/or 2009, the purchase price to be paid by Volkswagen AG for the transfer of the outstanding 50.1% equity
investment in Porsche Holding Stuttgart if the put option had been exercised by Porsche SE would have been increased
by the present value of the tax benefit. This arrangement was taken over under the terms of the contribution agreement
to the effect that Porsche SE has a claim against Volkswagen AG for payment in the amount of the present value of the
realizable tax benefits from any recapture taxation of the spin-off in 2007 as a result of the contribution. It was also
agreed under the terms of the contribution that Porsche SE will indemnify Volkswagen AG, Porsche Holding Stuttgart
and their subsidiaries against taxes if measures taken by or not taken by Porsche SE result in recapture taxation for
2012 at these companies in the course of or following implementation of the contribution. In this case, too, Porsche SE
is entitled to assert a claim for payment against Volkswagen AG in the amount of the present value of the realizable tax
benefits that arise at the level of Volkswagen AG or one of its subsidiaries as a result of such a transaction. Further
agreements were entered into and declarations were issued in connection with the contribution of Porsche SEs
holding company operating business to Volkswagen AG, in particular:
Porsche SE issued various guarantees to Volkswagen AG in the course of the contribution relating to Porsche
Holding Stuttgart, Porsche AG and its other transferred investees. Among other things, these relate to the proper
issuance of and full payment for shares and capital contributions, and/or to the ownership of the shares of Porsche
Holding Stuttgart and Porsche AG.
> Under the terms of the contribution of its holding company operating business, Porsche SE also issued guarantees to
Volkswagen AG for other assets transferred and liabilities assumed. In doing so, Porsche SE guarantees that these
have not been assigned and are, in principle, free from third-party rights up to the date of completion of the
contribution.
> As a general principle, Porsche SEs liabilities for these guarantees is restricted to the consideration paid by Volkswagen AG.
> Porsche SE indemnifies its contributed subsidiaries, Porsche Holding Stuttgart, Porsche AG and their subsidiaries
against liabilities to Porsche SE that relate to the period up to and including December 31, 2011 and that exceed the
obligations recognized in the financial statements of those companies for that period.
>

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A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Porsche SE indemnifies Porsche Holding Stuttgart and Porsche AG against obligations arising from certain legal
disputes; this includes the costs of an appropriate legal defense.
> Moreover, Porsche SE indemnifies Volkswagen AG, Porsche Holding Stuttgart, Porsche AG and their subsidiaries
against half of the taxes (other than taxes on income) arising at those companies in conjunction with the
contribution that would not have been incurred in the event of the exercise of the call option on the shares of Porsche
Holding Stuttgart that continued to be held by Porsche SE until the contribution. Volkswagen AG therefore
indemnifies Porsche SE against half of such taxes that it incurs. In addition, Porsche Holding Stuttgart is
indemnified against half of the land transfer tax and other costs triggered by the merger.
> Additionally, Porsche SE and Porsche AG agreed to allocate any subsequent VAT receivables or liabilities from
transactions in the period up to December 31, 2009 to the company entitled to the receivable or incurring the
liability.
> A range of information, conduct and cooperation obligations were agreed by Porsche SE and the Volkswagen Group.
>

According to a notification dated January 5, 2015, the State of Lower Saxony and Hannoversche Beteiligungsgesellschaft mbH, Hanover, continued to hold 20.00% of the voting rights of Volkswagen AG on December 31, 2014. As
mentioned above, the General Meeting of Volkswagen AG on December 3, 2009 also resolved that the State of Lower
Saxony may appoint two members of the Supervisory Board (right of appointment).
Members of the Board of Management and Supervisory Board of Volkswagen AG are members of supervisory and
management boards or shareholders of other companies with which Volkswagen AG has relations in the normal
course of business. All transactions with related parties are conducted on an arms length basis.
The following tables present the amounts of supplies and services transacted between Volkswagen AG and related
parties. The scope of such related parties was defined on the basis of IAS 24 and comprises consolidated and
unconsolidated subsidiaries, joint ventures, associates, Porsche SE and its affiliated companies as well as other related
parties. In addition to the amounts disclosed in the following tables, Volkswagen AG paid dividends to Porsche SE in the
amount of 599 million (previous year: 524 million).

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A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

R E L AT E D PA RT I E S

SUPPLIES AND

SUPPLIES AND

SERVICES RENDERED

SERVICES RECEIVED

million

2014

2014

Porsche SE

Supervisory Board members

Board of Management members

7,771

6,309

Consolidated subsidiaries
Unconsolidated subsidiaries

62

241

1,767

896

Associates

99

Pension plans

State of Lower Saxony, its majority interests and joint ventures

Joint ventures

INCOME FROM
PROFIT AND
LOSS

million

Porsche SE
Consolidated subsidiaries
Unconsolidated subsidiaries
Joint ventures

TRANSFER

COST OF LOSS

INTEREST

INTEREST

AGREEMENTS

ABSORPTION

INCOME

EXPENSE

2014

2014

2014

2014

4,708

16

221

1,763

COLLATERAL

COLLATERAL

CREDIT LINES

GRANTED

RECEIVED

GRANTED

million

2014

2014

2014

Consolidated subsidiaries

339

4,530

Unconsolidated subsidiaries

131

Joint ventures

568

Associates

State of Lower Saxony, its majority interests and joint ventures

Other related parties

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Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

The Board of Management and Supervisory Board of the Volkswagen Group are related parties. The following benefits
and remuneration were recorded for these persons in connection with their executive body membership:

Short-term benefits
Post-employment benefits
Termination benefits

2014

2013

76,443,784

73,129,268

7,313,989

7,361,018

12,128,463

95,886,236

80,490,286

Employee representatives on the Supervisory Board continue to receive a regular salary as stipulated in their
employment contracts. This is based on the provisions of the Betriebsverfassungsgesetz (BetrVG German Works
Constitution Act) and is appropriate to their respective function or role in the Company. The same applies for
representatives of senior management on the Supervisory Board.
Liabilities to members of the Board of Management for bonuses and termination benefits amounted to 65,435,399 at
the end of the year (previous year: 51,964,300). The post-employment benefits relate to additions to pension
provisions for current members of the Board of Management.
R E M U N E R AT I O N O F T H E B O A R D O F M A N A G E M E N T A N D T H E S U P E R V I S O RY B O A R D

2014

2013

Non-performance-related remuneration

11,339,551

11,638,328

Performance-related remuneration

54,166,233

52,444,300

65,505,784

64,082,628

Board of Management remuneration

Supervisory Board remuneration

Fixed remuneration components
Variable remuneration components

282,000

256,546

10,656,000

8,745,159

10,938,000

9,001,705

76,443,784

73,084,333

The non-performance-related remuneration of the Board of Management comprises fixed remuneration and fringe
benefits. The fixed remuneration component also includes differing levels of remuneration for the assumption of
appointments at Group companies. Fringe benefits relate to noncash benefits, including in particular the use of
property such as company cars, as well as the payment of insurance premiums. Taxes incurred on these noncash
benefits are largely borne by Volkswagen AG. The performance-related remuneration comprises a bonus linked to
business performance in the year under review and in the previous year, and since 2010, a long-term incentive (LTI),
which is based on the reporting period and the three fiscal years preceding it. Members of the Board of Management
can also be awarded bonuses that reflect their individual performance.
On December 31, 2014, pension obligations for members of the Board of Management amounted to 95,992,020
(previous year: 88,704,661). Current pensions are index-linked in accordance with the index-linking of the highest
collectively agreed salary insofar as the application of section 16 of the Gesetz zur Verbesserung der betrieblichen
Altersversorgung (BetrAVG German Company Pension Act) does not lead to a larger increase. Members of the Board
of Management with contracts entered into on or after January 1, 2010 are entitled to payment of their normal
remuneration for six to twelve months in the event of illness. Contracts entered into before that date grant
remuneration for six months. In the event of disability, they are entitled to the retirement pension. Surviving
dependents receive a widows pension of 66 2/3% and a 20% orphans pension based on the pension of the former
member of the Board of Management.

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Notes to the Financial Statements of Volkswagen AG for the Period ended December 31, 2014

Retired members of the Board of Management and their surviving dependents received 22,111,951 (previous year:
9,977,972). This includes the amounts granted to a member of the Board of Management as of July 31, 2014 in
connection with his departure from the Board of Management. This member of the Board of Management was
awarded non-performance-related remuneration of 1,270,575 and performance-related remuneration of
5,976,716 for the period from August 1, 2014 to September 30, 2015. The associated transitional benefits, less any
payments by third parties, corresponds to that payable for the period after the member reached the age of 63. The
present value of pension obligations for this group of people amounted to 129,456,621 (previous year:
125,376,525).
The individual remuneration of the members of the Board of Management and the Supervisory Board is explained
in the remuneration report in the management report.
Interest-free advances in the total amount of 480,000 (previous year: 480,000) have been granted to members of the
Board of Management. The advances will be set off against performance-related remuneration in the following year.

Wolfsburg, February 17, 2015

Volkswagen Aktiengesellschaft
The Board of Management

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Responsibility Statement

Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the annual financial
statements give a true and fair view of the assets, liabilities, financial position and profit or loss of Volkswagen AG, and
the management report includes a fair review of the development and performance of the business and the position of
the Company, together with a description of the material opportunities and risks associated with the expected
development of the Company.

Wolfsburg, February 17, 2015

Volkswagen Aktiengesellschaft
The Board of Management

Martin Winterkorn

Francisco Javier Garcia Sanz

Jochem Heizmann

Christian Klingler

Horst Neumann

Leif stling

Hans Dieter Ptsch

Andreas Renschler

Rupert Stadler

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Auditors Report

Auditors Report
On completion of our audit, we issued the following unqualified auditors report dated February 18, 2015. This report
was originally prepared in German. In case of ambiguities the German version takes precedence:
Auditors Report
We have audited the annual financial statements, comprising the balance sheet, the income statement and the notes to
the financial statements, together with the bookkeeping system, and the management report, which is combined with
the group management report of VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg, for the business year from
January 1 to December 31, 2014. As required by Article 6b (5) EnWG ("Energiewirtschaftsgesetz", "German Energy
Industry Law"), the audit also included the company's observance of obligations for the accounting pursuant to Article
6b (3) EnWG whereby the activities pursuant to Article 6b (3) EnWG have to be accounted for in separate accounts. The
maintenance of the books and records and the preparation of the annual financial statements and the combined
management report in accordance with the regulations of German commercial law as well as the observance of the
obligations pursuant to Article 6b (3) EnWG are the responsibility of the Company's Board of Management. Our
responsibility is to express an opinion on the annual financial statements, together with the bookkeeping system and
the combined management report and on the observance of obligations for the accounting pursuant to Article 6b (3)
EnWG based on our audit.
We conducted our audit of the annual financial statements in accordance with (Article) 317 HGB ("Handelsgesetzbuch": "German Commercial Code") and German generally accepted standards for the audit of financial
statements promulgated by the Institut der Wirtschaftsprfer (Institute of Public Auditors in Germany) (IDW). Those
standards require that we plan and perform the audit such that misstatements materially affecting the presentation of
the net assets, financial position and results of operations in the annual financial statements in accordance with
(German) principles of proper accounting and in the combined management report are detected with reasonable
assurance and to obtain reasonable assurance about whether, in all material aspects, the obligations for accounting
pursuant to Article 6b (3) EnWG have been observed. Knowledge of the business activities and the economic and legal
environment of the Company and expectations as to possible misstatements are taken into account in the
determination of audit procedures. The effectiveness of the accounting-related internal control system and the
evidence supporting the disclosures in the books and records, the annual financial statements and the combined
management report, as well as the observance of obligations for accounting pursuant to Article 6b (3) EnWG are
examined primarily on a test basis within the framework of the audit. The audit includes assessing the accounting
principles used and significant estimates made by the Company's Board of Management, as well as evaluating the
overall presentation of the annual financial statements and the combined management report, and assessing whether
the amounts stated and the classification of accounts pursuant to Article 6b (3) EnWG are appropriate and
comprehensible and whether the principle of consistency has been observed. We believe that our audit provides a
reasonable basis for our opinion.
Our audit of the annual financial statement, together with the bookkeeping system, and the management report has
not led to any reservations.

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A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Auditors Report

In our opinion based on the findings of our audit, the annual financial statements comply with the legal requirements
and give a true and fair view of the net assets, financial position and results of operations of the Company in
accordance with (German) principles of proper accounting. The combined management report is consistent with the
annual financial statements and as a whole provides a suitable view of the Company's position and suitably presents
the opportunities and risks of future development.
The audit of the observance of obligations for accounting pursuant to Article 6b (3) EnWG whereby the activities
pursuant to Article 6b (3) EnWG have to be accounted for in separate accounts has not led to any reservations."

Hanover, February 18, 2015

PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft

Norbert Winkeljohann
Wirtschaftsprfer
(German Public Auditor)

Frank Hbner
Wirtschaftsprfer
(German Public Auditor)

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A N N U A L F I N A N C I A L STAT E M E N T S O F V O L K SWA G E N A G

Executive Bodies

Executive Bodies
Members of the Board of Management and their Appointments
as of December 31, 2014

PROF. DR. DR. H. C. MULT.

DR. RER. POL. H.C.

DR. H.C. LEIF STLING (69)

MARTIN WINTERKORN (67)

FRANCISCO JAVIER

Commercial Vehicles

Chairman (since January 1, 2007)

GARCIA SANZ (57)

September 1, 2012*

Research and Development

Procurement

Appointments:

July 1, 2000*

July 1, 2001*

SKF AB, Gothenburg

Chairman of the Executive Board of

Appointments:

EQT Holdings AB, Stockholm

Porsche Automobil Holding SE

Hochtief AG, Essen

November 25, 2009*

Criteria CaixaHolding S.A., Barcelona

Appointments:

HANS DIETER PTSCH (63)

FC Bayern Mnchen AG, Munich

Finance and Controlling

PROF. DR. RER. POL. DR.-ING. E.H.

January 1, 2003*

JOCHEM HEIZMANN (62)

Chief Financial Officer of Porsche

China

Automobil Holding SE

January 11, 2007*

November 25, 2009*

Appointments:

Appointments:

Lufthansa Technik AG, Hamburg

Bertelsmann Management SE,

OBO Bettermann GmbH & Co. KG,

Gtersloh
Bertelsmann SE & Co. KGaA,

Menden

Gtersloh
CHRISTIAN KLINGLER (46)
Sales and Marketing

ANDREAS RENSCHLER (56)

January 1, 2010*

Commercial Vehicles

Appointments:

February 1, 2015*

Messe Frankfurt GmbH, Frankfurt am

Appointments (as of February 1, 2015):

Deutsche Messe AG, Hanover

Main

DR.-ING E.H. MICHAEL MACHT (54)

PROF. RUPERT STADLER (51)

Production

Chairman of the Board of Management

October 1, 2010 July 31, 2014*

of AUDI AG
January 1, 2010*

PROF. H.C. DR. RER. POL.

Appointments:

HORST NEUMANN (65)

FC Bayern Mnchen AG, Munich

Human Resources and Organization

December 1, 2005*

As part of their duty to manage and supervise

the Groups business, the members of the Board
of Management hold other offices on the
supervisory boards of consolidated Group

Membership of statutory supervisory boards in

Germany.

* The beginning or period of membership of the

Board of Management.

Comparable appointments in Germany and

abroad.

companies and other significant investees.

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Executive Bodies

Members of the Supervisory Board and their Appointments

as of December 31, 2014

HON.-PROF. DR. TECHN. H.C.

DR. HUSSAIN ALI AL-ABDULLA (57)

ANNIKA FALKENGREN (52)

DIPL.-ING. ETH

Board member of Qatar Investment Authority

President and Group Chief Executive of

FERDINAND K. PICH (77)

and board member of Qatar Holding LLC

Skandinaviska Enskilda Banken AB

(Chairman)

April 22, 2010*

May 3, 2011*

April 16, 2002*

Appointments:

Appointments:

Appointments:

Gulf Investment Corporation, Safat/Kuwait

Securitas AB, Stockholm

AUDI AG, Ingolstadt

Masraf Al Rayan, Doha (Chairman)

Dr. Ing. h.c. F. Porsche AG, Stuttgart

Qatar Investment Authority, Doha

DR. JUR. HANS-PETER FISCHER (55)

MAN SE, Munich (Chairman)

Qatar Holding LLC, Doha

Chairman of the Board of Management of

Porsche Automobil Holding SE, Stuttgart

Volkswagen Management Association

Ducati Motor Holding S.p.A., Bologna

AHMAD AL-SAYED (38)

January 1, 2013*

Porsche Holding Gesellschaft m.b.H.,

Minister of State, Qatar

Appointments:

June 28, 2013*

Volkswagen Pension Trust e.V., Wolfsburg

Salzburg
Scania AB, Sdertlje

Appointments:

Scania CV AB, Sdertlje

Qatar Exchange, Doha

UWE FRITSCH (58)

Qatar National Bank, Doha

Chairman of the Works Council at the

BERTHOLD HUBER (64)

Volkswagen AG Braunschweig plant

(Deputy Chairman)

JRGEN DORN (48)

April 19, 2012*

IG Metall

Chairman of the Works Council of the MAN

Appointments:

May 25, 2010*

Truck & Bus AG Munich plant, the General

Eintracht Braunschweig GmbH & Co KGaA,

Appointments:

Works Council of MAN Truck & Bus AG, as well

AUDI AG, Ingolstadt (Deputy Chairman)

as the Group Works Council and SE Works

Porsche Automobil Holding SE, Stuttgart

Council of MAN SE

Siemens AG, Munich (Deputy Chairman)

January 1, 2013*

Braunschweig
Phantoms Basketball Braunschweig GmbH,
Braunschweig

Appointments:
MAN SE, Munich
MAN Truck & Bus AG, Munich (Deputy
Chairman)

DR. JUR. KLAUS LIESEN (83)

July 2, 1987 May 3, 2006*
Honorary Chairman of the Supervisory Board of
Volkswagen AG (since May 3, 2006)

Membership of statutory supervisory boards in

* The beginning or period of membership of the

Supervisory Board.

Germany.
Comparable appointments in Germany and abroad.

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Executive Bodies

BABETTE FRHLICH (49)

BERND OSTERLOH (58)

URSULA PICH (58)

IG Metall,

Chairman of the General and Group Works

Member of the Supervisory Board of AUDI AG

Department head for coordination of Executive

Councils of Volkswagen AG

April 19, 2012*

Board duties and planning

January 1, 2005*

Appointments:

October 25, 2007*

Appointments:

AUDI AG, Ingolstadt

Appointments:

Autostadt GmbH, Wolfsburg

MTU Aero Engines AG, Munich

Porsche Automobil Holding SE, Stuttgart

Wolfsburg AG, Wolfsburg

DR. JUR. FERDINAND OLIVER PORSCHE (53)

OLAF LIES (47)

Allianz fr die Region GmbH, Braunschweig

Member of the Board of Management of

Minister of Economic Affairs, Labor and

Porsche Holding Gesellschaft m.b.H.,

Familie Porsche AG Beteiligungsgesellschaft

Transport for the Federal State of Lower Saxony

August 7, 2009*

Salzburg

February 19, 2013*

VfL Wolfsburg-Fuball GmbH, Wolfsburg

Appointments:

Appointments:

Volkswagen Immobilien GmbH, Wolfsburg

AUDI AG, Ingolstadt

Deutsche Messe AG, Hanover

Demografieagentur fr die niederschsische
Wirtschaft GmbH, Hanover (Chairman)
JadeWeserPort Realisierungs GmbH Co. KG,
Wilhelmshaven (Chairman)
Container Terminal Wilhelmshaven

Dr. Ing. h.c. F. Porsche AG, Stuttgart

DR. JUR. HANS MICHEL PICH (72)

Porsche Automobil Holding SE, Stuttgart

Lawyer in private practice

PGA S.A., Paris

August 7, 2009*

Porsche Holding Gesellschaft m.b.H.,

Salzburg

Appointments:

Porsche Lizenz- und Handelsgesellschaft

AUDI AG, Ingolstadt

JadeWeserPort-Marketing GmbH & Co. KG,

Dr. Ing. h.c. F. Porsche AG, Stuttgart

Wilhelmshaven

Porsche Automobil Holding SE, Stuttgart

JadeWeserPort Realisierungs-Beteiligungs
GmbH, Wilhelmshaven (Chairman)

mbH & Co. KG, Ludwigsburg

Porsche Cars Great Britain Ltd., Reading

Porsche Cars North America Inc.,
Wilmington

HARTMUT MEINE (62)

Director of the Lower Saxony and Saxony-

Porsche Holding Gesellschaft m.b.H.,

Salzburg

Anhalt Regional Office of IG Metall

Porsche Ibrica S.A., Madrid

December 30, 2008*

Porsche Italia S.p.A., Padua

Appointments:

Schmittenhhebahn AG, Zell am See

Continental AG, Hannover

Volksoper Wien GmbH, Vienna

KME Germany GmbH, Osnabrck

PETER MOSCH (42)

Chairman of the General Works Council of
AUDI AG
January 18, 2006*
Appointments:
AUDI AG, Ingolstadt
Porsche Automobil Holding SE, Stuttgart
Audi Pensionskasse Altersversorgung der
AUTO UNION GmbH, VVaG, Ingolstadt

Membership of statutory supervisory boards in

Germany.

* The beginning or period of membership of the

Supervisory Board.

Comparable appointments in Germany and abroad.

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Executive Bodies

DR. RER. COMM. WOLFGANG PORSCHE (71)

STEPHAN WEIL (56)

COMMITTEES OF THE SUPERVISORY BOARD

Chairman of the Supervisory Board of Porsche

Minister-President of the Federal State of

As of December 31, 2014

Automobil Holding SE; Chairman of the

Lower Saxony

Supervisory Board of Dr. Ing. h.c. F. Porsche AG

February 19, 2013*

Members of the Executive Committee

April 24, 2008*

Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH

Appointments:

Ferdinand K. Pich (Chairman)

AUDI AG, Ingolstadt

STEPHAN WOLF (48)

Berthold Huber (Deputy Chairman)

Dr. Ing. h.c. F. Porsche AG, Stuttgart

Deputy Chairman of the General and Group

Bernd Osterloh

Works Councils of Volkswagen AG

Dr. Wolfgang Porsche

January 1, 2013*

Stephan Weil

Appointments:

Stephan Wolf

(Chairman)
Porsche Automobil Holding SE,
Stuttgart (Chairman)
Familie Porsche AG Beteiligungsgesellschaft,
Salzburg (Chairman)
Porsche Cars Great Britain Ltd., Reading

Wolfsburg AG, Wolfsburg

Sitech Sitztechnik GmbH, Wolfsburg

Members of the Mediation Committee in

Volkswagen Pension Trust e.V., Wolfsburg

accordance with section 27(3) of the

Porsche Cars North America Inc.,

Wilmington
Porsche Holding Gesellschaft m.b.H.,
Salzburg
Porsche Ibrica S.A., Madrid

Mitbestimmungsgesetz (German
THOMAS ZWIEBLER (49)

Codetermination Act)

Chairman of the Works Council of Volkswagen

Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH

Commercial Vehicles

Ferdinand K. Pich (Chairman)

May 15, 2010*

Berthold Huber (Deputy Chairman)

Porsche Italia S.p.A., Padua

Bernd Osterloh

Schmittenhhebahn AG, Zell am See

Stephan Weil

Members of the Audit Committee

Dr. Ferdinand Oliver Porsche (Chairman)
Peter Mosch (Deputy Chairman)
Annika Falkengren
Babette Frhlich

Members of the Nomination Committee

Hon.-Prof. Dr. techn. h.c. Dipl.-Ing. ETH
Ferdinand K. Pich (Chairman)
Dr. Wolfgang Porsche
Stephan Weil

Membership of statutory supervisory boards in

* The beginning or period of membership of the

Supervisory Board.

Germany.
Comparable appointments in Germany and abroad.

63

VOLKSWAGEN
AKTIENGESELLSCHAFT

Shareholdings
of Volkswagen AG
and the Volkswagen Group
in accordance with
sections 285 and 313 of the HGB
and presentation of the companies
included in Volkswagens
consolidated financial statements
in accordance with IFRS 12
as of December 31, 2014

Name and domicile of company

I. PARENT COMPANY
VOLKSWAGEN AG, Wolfsburg

Exchange
rate
(1 =)
Currency Dec. 31, 2014

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

Footnote

Year

EUR

II. SUBSIDIARIES
A. Consolidated companies
1. Germany
ASB Autohaus Berlin GmbH, Berlin
AUDI AG, Ingolstadt
Audi Akademie GmbH, Ingolstadt
Audi Berlin GmbH, Berlin
Audi Electronics Venture GmbH, Gaimersheim
Audi Frankfurt GmbH, Frankfurt am Main
Audi Hamburg GmbH, Hamburg
Audi Hannover GmbH, Hanover
AUDI Immobilien GmbH & Co. KG, Ingolstadt
Audi Leipzig GmbH, Leipzig
Audi Stuttgart GmbH, Stuttgart
Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt
Audi Zentrum Mnchen GmbH, Munich
Auto & Service PIA GmbH, Munich
Autohaus Leonrodstrae GmbH, Munich
Autostadt GmbH, Wolfsburg
AutoVision GmbH, Wolfsburg
B. + V. Grundstcksverwertungs-GmbH & Co. KG, Koblenz
B. + V. Grundstcks- Verwaltungs- und Verwertungs-GmbH, Koblenz
Brandenburgische Automobil GmbH, Potsdam
Bugatti Engineering GmbH, Wolfsburg
Dr. Ing. h.c. F. Porsche AG, Stuttgart
Driver Eight GmbH, Frankfurt am Main
Driver Eleven GmbH, Frankfurt am Main
Driver Nine GmbH, Frankfurt am Main
Driver Seven GmbH, in Liquidation, Frankfurt am Main
Driver Ten GmbH, Frankfurt am Main
Driver Twelve GmbH, Frankfurt am Main
Ducati Motor Deutschland GmbH, Cologne
Eberhardt Kraftfahrzeug GmbH & Co. KG, Ulm
Eurocar Deutschland Verwaltungs GmbH, Munich
EURO-Leasing GmbH, Sittensen
GETAS Verwaltung GmbH & Co. Objekt Augsburg KG, Pullach i. Isartal
GETAS Verwaltung GmbH & Co. Objekt Ausbildungszentrum KG, Pullach i. Isartal
GETAS Verwaltung GmbH & Co. Objekt Heinrich-von-Buz-Strae KG, Pullach i. Isartal
GETAS Verwaltung GmbH & Co. Objekt Offenbach KG, Pullach i. Isartal
GETAS Verwaltung GmbH & Co. Objekt Verwaltung Nrnberg KG, Pullach i. Isartal
Haberl Beteiligungs-GmbH, Munich
Held & Strhle GmbH & Co. KG, Ulm
HI-R 8-Fonds, Frankfurt am Main
HI-S 5-Fonds, Frankfurt am Main
HI-TV-Fonds, Frankfurt am Main
Invesco Fonds Nr. 140, Frankfurt am Main
Karosseriewerk Porsche GmbH & Co. KG, Stuttgart
KOSIGA GmbH & Co. KG, Pullach i. Isartal
M A N Verwaltungs-Gesellschaft mbH, Munich
MAHAG Automobilhandel und Service GmbH & Co. oHG, Munich
MAHAG GmbH, Munich
MAHAG Sportwagen Zentrum Albrechtstrae GmbH, Munich
MAHAG Sportwagen Zentrum Mnchen Sd GmbH, Munich
MAHAG Sportwagen-Zentrum GmbH, Munich
MAN Diesel & Turbo SE, Augsburg
MAN Finance International GmbH, Munich
MAN Financial Services GmbH, Munich
MAN GHH Immobilien GmbH, Oberhausen
MAN Grundstcksgesellschaft mbH & Co. Alpha KG, Munich
MAN Grundstcksgesellschaft mbH & Co. Beta KG, Munich
MAN Grundstcksgesellschaft mbH & Co. Epsilon KG, Munich
MAN Grundstcksgesellschaft mbH & Co. Werk Deggendorf DWE KG, Munich
MAN HR Services GmbH, Munich
MAN SE, Munich
MAN Service und Support GmbH, Munich
MAN Truck & Bus AG, Munich
MAN Truck & Bus Deutschland GmbH, Munich
Mieschke, Hofmann und Partner Gesellschaft fr Management und IT- Beratung mbH,
Ludwigsburg
NEOPLAN Bus GmbH, Plauen
POFIN Financial Services GmbH & Co. KG, Freilassing
POFIN Financial Services Verwaltungs GmbH, Freilassing
PoHo Clearing GmbH, Freilassing
Porsche Consulting GmbH, Bietigheim-Bissingen
Porsche Deutschland GmbH, Bietigheim-Bissingen
Porsche Dienstleistungs GmbH, Stuttgart
Porsche Engineering Group GmbH, Weissach
Porsche Engineering Services GmbH, Bietigheim-Bissingen
Porsche Financial Services GmbH & Co. KG, Bietigheim-Bissingen
Porsche Financial Services GmbH, Bietigheim-Bissingen
Porsche Financial Services Verwaltungsgesellschaft mbH, Bietigheim-Bissingen
Porsche Holding Stuttgart GmbH, Stuttgart
Porsche Leipzig GmbH, Leipzig
Porsche Lizenz- und Handelsgesellschaft mbH & Co. KG, Ludwigsburg
Porsche Logistik GmbH, Stuttgart
Porsche Niederlassung Berlin GmbH, Berlin
Porsche Niederlassung Berlin-Potsdam GmbH, Kleinmachnow
Porsche Niederlassung Hamburg GmbH, Hamburg
Porsche Niederlassung Leipzig GmbH, Leipzig
Porsche Niederlassung Stuttgart GmbH, Stuttgart

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

99.55
100.00
100.00
100.00
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
98.59
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.30
100.00
100.00
100.00
100.00
94.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.04
100.00
100.00
100.00

100.00
99.55
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
98.59
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.30
100.00
100.00
100.00
100.00
100.00
94.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
74.04
100.00
100.00
100.00

11,259
8,506,199
4,280
6,625
17,018
8,477
13,425
14,525
78,878
9,525
6,677
100
325
19,895
270
50
37,630
13,560
91
4,452
25
7,220,316
26
25
25
26
25
25
6,855
512
85,541
20,203
2,039
26
10
26
3,369
16,174
2,915
1,534
1,039
37,274
78,338
100
3,205
5,056
613,347
105,000
48,508
39,566
5,124
47,756
623
16,810
716
2,145,974
25
563,438
130,934

617
3,369
4,763
1,479
5
94
1,203
2,303
16,359
-104
319
-32
-181
628
3,381
74
599
5,686
-691
1,457
1,074
965
-

100.00
-

81.80
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.00
100.00
100.00
100.00
100.00
100.00
100.00

81.80
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
65.00
100.00
100.00
100.00
100.00
100.00
100.00

21,551
2,146
92,232
87,016
-125
700
9,125
43
4,000
1,601
79,535
24,052
77
8,937,561
2,500
11,711
1,000
2,500
1,700
2,000
500
2,500

20,934
2,340
25
-5
11,088
5
-11,479
-

1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
13)
1)
1)
1)

1)
1) 14)
16) 17)
4) 16)
16) 17)
2) 16)
16)
6) 16)

1)

1)
16)
16)
16)
16)

1)
1)
1)
1)
1)
1)
1)
1)
1)

1)
1) 14)
1)
1)
1)

1)
14)

1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)

2013
2013
2014
2013
2014
2013
2013
2013
2014
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2014
2013
2013
2013
2014
2014
2014
2014
2014
2014
2013
2013
2014
2014
2014
2014
2014
2014
2014
2013
2013
2013
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2014
2014
2014
2014
2014
2013
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014

Name and domicile of company

Porsche Nordamerika Holding GmbH, Ludwigsburg
Porsche Siebte Vermgensverwaltung GmbH, Stuttgart
Porsche Verwaltungsgesellschaft mit beschrnkter Haftung, Ludwigsburg
Porsche Vierte Vermgensverwaltung GmbH, Stuttgart
Porsche Zentrum Hoppegarten GmbH, Stuttgart
Private Driver 2010-1 fixed GmbH, Frankfurt am Main
Private Driver 2011-1 GmbH, Frankfurt am Main
Private Driver 2011-2 GmbH, Frankfurt am Main
Private Driver 2011-3 GmbH, Frankfurt am Main
Private Driver 2012-1 GmbH, Frankfurt am Main
Private Driver 2012-2 GmbH, Frankfurt am Main
Private Driver 2012-3 GmbH, Frankfurt am Main
Private Driver 2013-1 UG (haftungsbeschrnkt), Frankfurt am Main
Private Driver 2013-2 UG (haftungsbeschrnkt), Frankfurt am Main
Private Driver 2014-1 UG (haftungsbeschrnkt), Frankfurt am Main
Private Driver 2014-2 UG (haftungsbeschrnkt), Frankfurt am Main
Private Driver 2014-3 UG (haftungsbeschrnkt), Frankfurt am Main
Private Driver 2014-4 UG (haftungsbeschrnkt), Frankfurt am Main
PSW automotive engineering GmbH, Gaimersheim
quattro GmbH, Neckarsulm
Raffay Versicherungsdienst GmbH, Hamburg
Renk Aktiengesellschaft, Augsburg
RENK Test System GmbH, Augsburg
Scania CV Deutschland Holding GmbH, Koblenz
Scania Danmark GmbH, Flensburg
SCANIA DEUTSCHLAND GmbH, Koblenz
Scania Finance Deutschland GmbH, Koblenz
Scania Flensburg GmbH, Flensburg
SCANIA Real Estate Deutschland GmbH, Koblenz
SCANIA Real Estate Deutschland Holding GmbH, Koblenz
Scania Versicherungsvermittlung GmbH, Koblenz
SCANIA Vertrieb und Service GmbH, Kerpen
SCANIA Vertrieb und Service GmbH, Koblenz
Schwaba GmbH, Augsburg
SEAT Deutschland GmbH, Weiterstadt
SITECH Sitztechnik GmbH, Wolfsburg
SKODA AUTO Deutschland GmbH, Weiterstadt
Sportwagen am Olympiapark GmbH, Munich
Sportwagen GmbH Donautal, Ulm
Truck & Bus GmbH, Wolfsburg
VfL Wolfsburg-Fuball GmbH, Wolfsburg
VGRD GmbH, Wolfsburg
Volim Volkswagen Immobilien Vermietgesellschaft fr VW-/Audi-Hndlerbetriebe mbH,
Braunschweig
Volkswagen Automobile Berlin GmbH, Berlin
Volkswagen Automobile Chemnitz GmbH, Chemnitz
Volkswagen Automobile Frankfurt GmbH, Frankfurt am Main
Volkswagen Automobile Hamburg GmbH, Hamburg
Volkswagen Automobile Hannover GmbH, Hanover
Volkswagen Automobile Leipzig GmbH, Leipzig
Volkswagen Automobile Region Hannover GmbH, Hanover
Volkswagen Automobile Rhein-Neckar GmbH, Mannheim
Volkswagen Automobile Stuttgart GmbH, Stuttgart
Volkswagen Bank GmbH, Braunschweig
VOLKSWAGEN FINANCIAL SERVICES AG, Braunschweig
Volkswagen Financial Services Beteiligungsgesellschaft mbH, Braunschweig
Volkswagen Gebrauchtfahrzeughandels und Service GmbH, Langenhagen
Volkswagen Group Real Estate GmbH & Co. KG, Wolfsburg
Volkswagen Immobilien GmbH, Wolfsburg
Volkswagen Leasing GmbH, Braunschweig
Volkswagen Logistics GmbH & Co. OHG, Wolfsburg
Volkswagen Logistics GmbH, Wolfsburg
Volkswagen Original Teile Logistik Beteiligungs-GmbH, Baunatal
Volkswagen Original Teile Logistik GmbH & Co. KG, Baunatal
Volkswagen Osnabrck GmbH, Osnabrck
Volkswagen R GmbH, Wolfsburg
Volkswagen Sachsen GmbH, Zwickau
Volkswagen Versicherung AG, Braunschweig
Volkswagen Versicherungsvermittlung GmbH, Braunschweig
Volkswagen Vertriebsbetreuungsgesellschaft mbH, Chemnitz
Volkswagen Zubehr GmbH, Dreieich
Volkswagen-Versicherungsdienst GmbH, Braunschweig
VW Kraftwerk GmbH, Wolfsburg
2. International
AB Dure, Sdertlje
AB Folkvagn, Sdertlje
AB Scania-Vabis, Sdertlje
ABCIS Bretagne S.A.S., Plouigneau
ABCIS Centre S.A.S., Clermont-Ferrand
ABCIS Picardie S.A.S., Saint-Maximin
ABCIS Pyrnes S.A.S., Billre
Aconcagua Vehculos Comerciales S.A., Buenos Aires
Ainax AB, Stockholm
Airbug Ltd., George Town
Aktiebolaget Tnseth & Co, Sdertlje
Aliz Automobile S.A.R.L., Aubire
ARAC GmbH, Salzburg
Astur Wagen, S.A., Gijn
Audi (China) Enterprise Management Co., Ltd., Beijing
Audi Australia Pty. Ltd., Zetland
Audi Australia Retail Operations Pty. Ltd., Zetland
Audi Brussels Property S.A./N.V., Brussels
Audi Brussels S.A./N.V., Brussels
Audi Canada Inc., Ajax / ON

Exchange
rate
(1 =)
Currency Dec. 31, 2014

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

100.00
100.00
100.00

100.00
65.00
100.00
100.00
97.00
100.00
100.00
76.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-

100.00
100.00
65.00
100.00
100.00
97.00
100.00
100.00
76.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

58,311
636,919
35
23
2,556
26
25
25
25
25
25
25
5
5
5
5
5
5
24,818
100
153
281,579
5,048
27,570
242
36,625
44,312
542
10,558
14,732
1
2,353
5,476
19,790
52,279
78,804
34,376
6,146
2,605
12,328,834
30,973
282,939

0
1
7,941
44,047
2,785
-14,136
27
0
762
63
38
1,142
-7
884

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

100.00
100.00
81.00
100.00
49.80
50.57
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
19.00
3.80
3.88
100.00
100.00
100.00
100.00
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
53.60
54.45
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

26
14,140
6,439
2,979
35,371
20,359
13,805
7,525
8,161
4,407
4,289,684
5,251,495
523,001
603
327,335
86,169
231,009
511
1,323
30
47,000
10,511
7,900
672,503
52,055
54,829
805
8,969
54,369
219,914

14,445
260,834
173
1
89,705
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

1,440
100
130
1,797
7,113
6,972
7,096
39,174
120
8,794
242
2,977
2,132
936,334
119,348
4,232
85,800
507,100
85,815

-23
366
690
733
12,122
681
-43
-511
84
307,268
10,753
1,913
2,600
30,300
18,451

SEK
SEK
SEK
EUR
EUR
EUR
EUR
ARS
SEK
USD
SEK
EUR
EUR
EUR
CNY
AUD
AUD
EUR
EUR
CAD

9.3930
9.3930
9.3930

10.2725
9.3930
1.2141
9.3930

7.5358
1.4829
1.4829

1.4063

4,057
8,526
4,936
18,828
-

Footnote

Year

1)
1)

2014
2013
2014
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2014
2014
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

1)
1)
16) 17)
16) 17)
16) 17)
16)
16)
16)
16)
4) 16)
4) 16)
6) 16)
6) 16)
16)
6) 16)
1)
1) 5)

1)

13)

1)
1)
1)
1) 3)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1)
1) 14)
19)

1)
1)
1) 14)
1)
1)
1)
1)
1)
1)

5)
5)
5)

5)
6) 11)

2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2014
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2014
2014
2014
2014
2013
2014
2013

2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2014
2014
2014
2014
2014
2014

Name and domicile of company

Audi do Brasil Indstria e Comrcio de Veculos Ltda., So Paulo
Audi Hungaria Motor Kft., Gyr
Audi Hungaria Services Zrt., Gyr
Audi Japan K.K., Tokyo
Audi Japan Sales K.K., Tokyo
Audi Mxico S.A. de C.V., San Jos Chiapa
Audi of America, LLC, Herndon / VN
Audi Retail BCN, S.A., Barcelona
Audi Retail Madrid, S.A., Madrid
Audi Singapore Pte. Ltd., Singapore
Audi Volkswagen Taiwan Co., Ltd., Taipei
Audi Tooling Barcelona, S.L., Barcelona
Audi Volkswagen Korea Ltd., Seoul
Audi Volkswagen Middle East FZE, Dubai
Auto Doetinchem B.V., Doetinchem
Auto Garage de l'Ouest S.A.S., Orvault
Auto Losange Metz S.A.S., Metz
Autohaus Robert Stipschitz GmbH, Salzburg
Autolille S.A.S., Villeneuve d'Ascq
Automobili Lamborghini America, LLC, Herndon / VN
Automobili Lamborghini S.p.A., Sant'Agata Bolognese
Automotores del Atlantico S.A., Buenos Aires
Concesionaria Automotores Pesados S.A., Buenos Aires
Banco Volkswagen S.A., So Paulo
Basa S.A.S., Niort
Bavaria Concept S.A.S., Livin
Bawaria Motors Sp. z o.o., Warsaw
Bayern Aix S.A.S., Aix-en-Provence
Bayern Automobiles S.A.S., Mrignac
Bayern Landes Pays Basque S.A.S., Bayonne
Bayern Motors S.A.S., Paris
Beauciel Automobiles S.A.S., La Chausse-Saint-Victor
Beijing Junbaojie Automobile Repair and Maintenance Co., Ltd., Beijing
Beijing Junbaojie Automobile Sales and Service Co., Ltd., Beijing
Beijing Junbaojie Automobile Trade Co., Ltd., Beijing
Bentley Motor Cars Export Ltd., Crewe
Bentley Motors Canada Ltd./Ltee., Montreal / QC
Bentley Motors Ltd., Crewe
Bentley Motors, Inc., Boston / MA
Blitz B.V., Veenendaal
Blitz Motors S.A.S., Paris
Bohemia Motors Sp. z o.o., Falenty
Bugatti Automobiles S.A.S., Molsheim
Bugatti International S.A., Luxembourg
Carlier Automobiles S.A.S., Lambres-lez-Douai
Carrera Finance S.A., Luxembourg
Carrosserie de l'Escaut S.A., Tournai
Centro Porsche Padova S.r.l., Padua
Centro Tcnico de SEAT, S.A., Martorell
Centurion Truck & Bus (Pty) Ltd. t/a, Centurion
Chapter Air Ltd., George Town
Codema Comercial e Importadora Ltda., Guarulhos
Cofora Polska Sp. z o.o., Warsaw
Compagnie Fonciere Raison - Cofora S.A.S., Paris
Consrcio Nacional Volkswagen - Administradora de Consrcio Ltda., So Paulo
Corre Automobiles S.A., Villemandeur
Crewe Genuine Ltd., Crewe
de Bois B.V., Velp
Dearborn Motors S.A.S., Paris
Delta Invest Sp. z o.o., Falenty
Diffusion Automobile Calaisienne S.A.S., Coquelles
Diffusion Automobile de Charente S.A.S., Champniers
Diffusion Automobile du Nord (D.I.A.N.O.R.) S.A.S., Roncq
Diffusion Automobile Girondine S.A., Mrignac
Din Bil Fastigheter Syd AB, Stockholm
Din Bil Helsingborg AB, Helsingborg
Din Bil Fastigheter Gteborg AB, Stockholm
Din Bil Stockholm Sder AB, Stockholm
Din Bil Sverige AB, Stockholm
Distribution Automobiles Bethunoise S.A.S., Fouquires-ls-Bthune
Domes Automobiles S.A.R.L., Chasseneuil-du-Poitou
Driver Australia One Pty. Ltd., Melbourne
Driver Brasil One Banco Volkswagen Fundo de Investimento em Direitos Creditrios
Financiamento de Veculos, Osasco
Driver Brasil Two Banco Volkswagen Fundo de Investimento em Direitos Creditrios
Financiamento de Veculos, Osasco
Driver China One Auto Loan Securitization Trust, Beijing
Driver France FCT, Pantin
Driver UK Master S.A., Luxembourg
Driver UK Multi-Compartment S.A., Luxembourg
Ducati (Schweiz) AG, Wollerau
Ducati do Brazil Industria e Comercio de Motocicletas Ltda., So Paulo
Ducati Japan K.K., Tokyo
Ducati Motor (Thailand) Co. Ltd., Amphur Pluakdaeng
Ducati Motor Holding S.p.A., Bologna
Ducati North America, Inc., Cupertino / CA
Ducati North Europe B.V., Zoeterwoude
Ducati U.K. Ltd., Towcester
Ducati West Europe S.A.S., Colombes
Ducmotocicleta S. de R.L. de C.V., Mexico City
Duverney Automobiles S.A.S., St.-Jean-de-Maurienne
Duverney Savoie Automobiles S.A.S., Saint-Alban-Leysse
Duverney Val Savoie Automobiles S.A.S., Saint-Alban-Leysse
Dynamate AB, Sdertlje
DynaMate Industrial Services AB, Sdertlje

Exchange
rate
(1 =)
Currency Dec. 31, 2014
BRL
EUR
EUR
JPY
JPY
USD
USD
EUR
EUR
SGD
TWD
EUR
KRW
USD
EUR
EUR
EUR
EUR
EUR
USD
EUR
ARS
ARS
BRL
EUR
EUR
PLN
EUR
EUR
EUR
EUR
EUR
CNY
CNY
CNY
GBP
CAD
GBP
USD
EUR
EUR
PLN
EUR
EUR
EUR
EUR
EUR
EUR
EUR
ZAR
USD
BRL
PLN
EUR
BRL
EUR
GBP
EUR
EUR
PLN
EUR
EUR
EUR
EUR
SEK
SEK
SEK
SEK
SEK
EUR
EUR
AUD

3.2207

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

1.4829

100.00
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
70.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
70.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-

454,220
3,923,232
8,998,631
19,271,716
7,277,708
820,857
414,394
689
1,380
37,450
1,594,084
17,154
180,334,390
78,571
18
3,724
3,590
6,060
1,189
1,821,813
42,569
53,841
2,210,694
4,452
1,770
43,149
2,559
2,239
302
7,741
3,256
79,175
8,378
31,059
11
4,389
-139,500
62,891
1,390
1,361
691
23,091
5,376
2,798
31
220
131,069
28,015
103,065
54,369
30,370
122,260
1,150
546
2,056
5,512
-2,275
1,575
2,364
2,413
276
666
13,335
11,654
25,540
581,271
1,938
328
-

-59,587
318,986
10,703
916,914
591,596
-44,901
73,052
-530
242
2,044
73,086
924
40,680,922
13,703
367
33
366
93
1,421
10,893
13,271
165,145
323
-157
8,257
235
257
-436
3
113
-20,637
712
635
1,337
127,200
8,401
78
-1,809
654
-211
191
146
-303
9,838
16,078
2,009
5,012
-40,142
-71
-255
1
-877
158
295
18
-16
-7
270
85
187
135,746
-74
49
-

BRL

3.2207

435,941

BRL
CNY
EUR
GBP
GBP
CHF
BRL
JPY
THB
EUR
USD
EUR
GBP
EUR
MXN
EUR
EUR
EUR
SEK
SEK

3.2207
7.5358

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

1,089,801
29
29
923
-6,409
396,402
175,668
623,375
38,387
3,039
1,314
3,894
1,047
1,773
6,201
3,137
36,700
8,761

145.2300
145.2300
1.2141
1.2141

1.6058
38.4259
1,324.8000
1.2141

1.2141
10.2725
10.2725
3.2207

4.2732

7.5358
7.5358
7.5358
0.7789
1.4063
0.7789
1.2141

4.2732

14.0353
1.2141
3.2207
4.2732
3.2207
0.7789

4.2732

9.3930
9.3930
9.3930
9.3930
9.3930

0.7789
0.7789
1.2024
3.2207
145.2300
39.9100
1.2141
0.7789
17.8679

9.3930
9.3930

Footnote

Year

15) 16)

2014
2014
2014
2014
2013
2014
2014
2013
2013
2014
2014
2014
2014
2014
2013
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

55,111

16)

2013

4,801
26
-6,648
199,801
180,122
27,460
3,780
365
787
-607
1,357
60
893
336
-36,243
-930

6) 16)
6) 16)
15) 16)
3) 16)
6) 16)

2013
2014
2013
2013
2014
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

7)

5)
12)
12)

16)
7)

11)

5)

8)
5)

Name and domicile of company

DynaMate IntraLog AB, Sdertlje
Dynamic Automobiles S.A.S., Annemasse
Ekris Holding B.V., Veenendaal
Ekris Motorsport B.V., Veenendaal
Ekris Retail B.V., Veenendaal
Elgersma B.V., Vianen
ERF Ltd., Swindon
Etablissement Duverney & Cie S.A.S., Saint-Alban-Leysse
Etablissements A. Gardin S.A.S., Terville
Eurent Autoklcsnz Kft., Budapest
Eurent Slovakia s.r.o., Bratislava
EuroSelect Quality Parts Inc., Atlanta / GA
Eurocar Immobili Italia s.r.l., Udine
Eurocar Italia s.r.l., Udine
Euro-Leasing A/S, Padborg
Euro-Leasing Hellas E.P.E., in liquidation, Thessaloniki
Euro-Leasing Sp. z o.o., Kolbaskowo
Europeisk Biluthyrning AB, Stockholm
Evrard Les Grands Garages Livinois S.A.S., Livin
ExB II LLC, Atlanta / GA
ExB LLC, Atlanta / GA
Excel Motors S.A.S., Laxou
Exclusive Cars Vertriebs GmbH, Salzburg
Fastighets AB Katalysatorn, Sdertlje
Fastighetsaktiebolaget Flygmotorn, Sdertlje
Fastighetsaktiebolaget Hjulnavet, Sdertlje
Fastighetsaktiebolaget Motorblocket, Sdertlje
Fastighetsaktiebolaget Vindbron, Sdertlje
Ferruform AB, Lule
FMP S.A.R.L., Villeneuve d'Ascq
Futurauto S.A.S., Poitiers
FWAU Holding S.A.S., Paris
Garage Andr Floc S.A.S., Cesson-Svign
Garage Chevalier S.A.S., Longeville-ls-Metz
Garage de la Gohelle S.A.S., Sains-en-Gohelle
Garage de la Lys - NGA S.A.S., Longuenesse
Garage de la Lys Englos les Geants S.A.S., Sequedin
Garage de la Lys S.A.S., Nieppe
Garage Robert Bel S.A.S., Annemasse
Garage Vetterli AG, Seuzach
Gardin S.A.S., Terville
GGBA S.A.S., Hnin-Beaumont
Glider Air Ltd., George Town
Global Automotive Finance C.V., Amsterdam
Grands Garages de Provence SNC, Aix-en-Provence
Grands Garages de Touraine SNC, St. Cyr-sur-Loire
Grands Garages du Berry S.A.S., Saint-Maur
Grands Garages du Biterrois S.A.S., Bziers
Griffin Automotive Ltd., Road Town
Gulf Turbo Services LLC, Doha
Hamlin Services LLC, Herndon / VA
Hangzhou Jiejun Automobile Sales and Service Co., Ltd., Hangzhou
Hangzhou Junbaohang Automobile Sales and Service Co., Ltd., Hangzhou
Houdstermaatschappij Plesman I B.V., Veenendaal
Houdstermaatschappij Plesman II B.V., Veenendaal
Huzhou Junbaohang Automobile Sales and Service Co., Ltd., Huzhou
IMMO SADA S.A.R.L., Dunkirk
Immogeb S.A.S., Hnin-Beaumont
Intercar Austria GmbH, Salzburg
Ipecas - Gesto de Imveis S.A., Lisbon
Italdesign Giugiaro S.p.A., Turin
Italscania S.p.A., Trento
J.M.C. Autos S.A.S., Charmeil
Jacques Carlet S.A.S., Mozac
Jacques Duverney Annemasse S.A.S., Annemasse
Jacques Duverney S.A.S., Thonon-les-Bains
James Young Ltd., Crewe
Javel Motors S.A.S., Paris
Jiaxing Jiejun Automobile Sales and Service Co., Ltd., Jiaxing
Jiaxing Junbaohang Automobile Sales and Service Co., Ltd., Jiaxing
Jinhua Jiejun Automobile Sales and Service Co., Ltd., Jinhua
Jinhua Junbaohang Automobile Sales and Service Co., Ltd., Jinhua
JP Cresson S.A.R.L., Lezennes
Kai Tak Holding AB, Sdertlje
La Difference Automobile S.A.S., La Teste-de-Buch
SCI La Fonciere Marjolin, Paris
Lark Air Ltd., George Town
Lauken S.A., Montevideo
Le Grand Garage Piscenois S.A.R.L., Pzenas
Leioa Wagen, S.A., Leioa
Lens Location S.A.S., Loison-sous-Lens
Les Nouveaux Garages de l'Artois (N.G.A.) S.A.S., Arras
Levante Wagen, S.A., Valencia
Lion Air Services, Inc., George Town
Lion Motors Sp. z o.o., Piaseczno
Longwy Espace Automobile S.A.S., Mexy
Lorraine Motors S.A.S., Tomblaine
M.C.A. S.A.S., Champniers
Mlaga Wagen, S.A., Mlaga
Mlardalens Tekniska Gymnasium AB, Sdertlje
MAN Accounting Center Sp. z o.o., Pozna
MAN Automotive (South Africa) (Pty) Ltd., Johannesburg
MAN Bus & Coach (Pty) Ltd., Olifantsfontein
MAN Bus Sp. z o.o., Tarnowo Podgrne
MAN Camions & Bus S.A.S., Evry Cedex

Exchange
rate
(1 =)
Currency Dec. 31, 2014
SEK
EUR
EUR
EUR
EUR
EUR
GBP
EUR
EUR
HUF
EUR
USD
EUR
EUR
DKK
EUR
PLN
SEK
EUR
USD
USD
EUR
EUR
SEK
SEK
SEK
SEK
SEK
SEK
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
CHF
EUR
EUR
USD
EUR
EUR
EUR
EUR
EUR
TWD
QAR
USD
CNY
CNY
EUR
EUR
CNY
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
GBP
EUR
CNY
CNY
CNY
CNY
EUR
SEK
EUR
EUR
USD
UYU
EUR
EUR
EUR
EUR
EUR
USD
PLN
EUR
EUR
EUR
EUR
SEK
PLN
ZAR
ZAR
EUR
EUR

9.3930

0.7789

315.5400
1.2141

7.4453
4.2732
9.3930
1.2141
1.2141

9.3930
9.3930
9.3930
9.3930
9.3930
9.3930

1.2024

1.2141

38.4259
4.4192
1.2141
7.5358
7.5358

7.5358

0.7789
7.5358
7.5358
7.5358
7.5358
9.3930

1.2141
29.1370

1.2141
4.2732

9.3930
4.2732
14.0353
14.0353

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
55.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
90.10
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
55.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
90.10
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
6,992
1,408
17,962
-9
6,766
2,255
20,000
9,839
1,894
965,620
1,531
-4
10,135
9,867
5,581
3,043
49,721
1,153
3,605
8,361
425
2,401
120
18,825
53,953
100
42,067
120,265
6,043
397
44,685
4,570
1,727
855
1,735
1,888
2,709
1,361
4,002
3,136
117,415
522,268
8,971
7,782
627
1,866
259,150
30,857
26,044
189,735
7,798
487
39,931
-235
-801
12,474
82,994
107,332
1,292
4,264
2,552
2,856
12,474
7,452
57,871
77,020
241,626
119,879
274
120
1,120
4,002
1,545
2,873
1,317
4,738
4,463
80,503
-4,233
486
4,311
1,567
928
1,000
1,338
16,924
67,556
88,792
37,667

Profit/loss
in thousands,
local currency
-8,485
152
-494
8
3,482
-77
553
-85
3,055
7
82
17
3,920
-66
-258
3,686
308
-5,395
3,212
36
590
3,166
8,043
-1
3,823
-73,437
964
-273
5
436
-10
86
263
118
393
78
-401
374
10,845
-146
848
490
-432
-740
129,116
13,156
-11,796
12,119
-12,507
84
585
5,133
-6
2,445
6,978
159
688
205
466
416
-5,763
-796
60,777
688
154
166
3,542
276
-506
-33
751
710
16,251
-1,856
117
1,243
221
-273
1,753
1,167
6,990
9,651
4,389

Footnote

5)

2)

16)
16)

5)

11)

11)

5)

8)

11)
5)

10)

14)

Year
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2014

Name and domicile of company

MAN Capital Corp., Pompano Beach / FL
MAN Diesel & Turbo Australia Pty. Ltd., North Ryde
MAN Diesel & Turbo Benelux B.V., Schiedam
MAN Diesel & Turbo Benelux N.V., Antwerp
MAN Diesel & Turbo Brasil Ltda., Rio de Janeiro
MAN Diesel & Turbo Canada Ltd., Oakville / ON
MAN Diesel & Turbo Chile Ltda., Valparaso
MAN Diesel & Turbo China Production Co., Ltd., Changzhou
MAN Diesel & Turbo Espaa S.A., Madrid
MAN Diesel & Turbo France S.A.S., Villepinte
MAN Diesel & Turbo Hellas E.P.E., Piraeus
MAN Diesel & Turbo Hong Kong Ltd., Hong Kong
MAN Diesel & Turbo India Ltd., Aurangabad
MAN Diesel & Turbo Italia S.r.l., Genoa
MAN Diesel & Turbo Korea Ltd., Busan
MAN Diesel & Turbo Middle East LLC, Dubai
MAN Diesel & Turbo North America Inc., Woodbridge / NJ
MAN Diesel & Turbo Operations Pakistan Pvt. Ltd., Lahore
MAN Diesel & Turbo Pakistan Pvt. Ltd., Lahore
MAN Diesel & Turbo Saudi Arabia LLC, Jeddah
MAN Diesel & Turbo Schweiz AG, Zurich
MAN Diesel & Turbo Shanghai Co., Ltd., Shanghai
MAN Diesel & Turbo Singapore Pte. Ltd., Singapore
MAN Diesel & Turbo South Africa (Pty) Ltd., Elandsfontein
MAN Diesel & Turbo UK Ltd., Stockport
MAN Diesel ve Turbo Satis Servis Ltd. Sti., Istanbul
MAN Engines & Components Inc., Pompano Beach / FL
MAN ERF Ireland Properties Ltd., Waterford
MAN Finance and Holding S.A., Luxembourg
MAN Finance Luxembourg S.A., Luxembourg
MAN Financial Services Espaa S.L., Coslada
MAN Financial Services GesmbH, Eugendorf
MAN Financial Services plc., Swindon
MAN Financial Services Poland Sp. z o.o., Nadarzyn
MAN Financial Services Portugal, Unipessoal, Lda., Lisbon
MAN Financial Services S.A.S., Evry Cedex
MAN Financial Services SpA, Dossobuono di Villafranca
MAN Finansman A.S., Ankara
MAN Hellas Truck & Bus A.E., Aspropygros
MAN Iberia S.A., Coslada
MAN Kamion s Busz Kereskedelmi Kft., Dunaharaszti
MAN Kamyon ve Otobs Ticaret A.S., Ankara
MAN Latin America Indstria e Comrcio de Veculos Ltda., So Paulo
MAN Location & Services S.A.S., Evry Cedex
MAN Nutzfahrzeuge Immobilien GmbH, Steyr
MAN Truck & Bus (Korea) Ltd., Seoul
MAN Truck & Bus (M) Sdn. Bhd., Rawang
MAN Truck & Bus (S.A.) (Pty) Ltd., Johannesburg
MAN Truck & Bus Asia Pacific Co. Ltd., Bangkok
MAN Truck & Bus Czech Republic s.r.o., Cestlice
MAN Truck & Bus Danmark A/S, Glostrup
MAN Truck & Bus Iberia S.A., Coslada
MAN Truck & Bus Italia S.p.A., Dossobuono di Villafranca
MAN Truck & Bus Kazakhstan LLP, Almaty
MAN Truck & Bus Mexico S.A. de C.V., El Marques
MAN Truck & Bus Middle East and Africa FZE, Dubai
MAN Truck & Bus Middle East FZE, Dubai
MAN Truck & Bus N.V., Kobbegem
MAN Truck & Bus Norge A/S, Lorenskog
MAN Truck & Bus sterreich AG, Steyr
MAN Truck & Bus Polska Sp. z o.o., Nadarzyn
MAN Truck & Bus Portugal S.U. Lda., Lisbon
MAN Truck & Bus Schweiz AG, Otelfingen
MAN Truck & Bus Slovakia s.r.o., Bratislava
MAN Truck & Bus Slovenija d.o.o., Ljubljana
MAN Truck & Bus Sverige AB, Kungens Kurva
MAN Truck & Bus Trading (China) Co., Ltd., Beijing
MAN Truck & Bus UK Ltd., Swindon
MAN Truck & Bus Vertrieb sterreich AG, Vienna
MAN Trucks India Pvt. Ltd., Pune
MAN Trucks Sp. z o.o., Niepolomice
MAN Trkiye A.S., Ankara
MB Motors Sp. z o.o., Piaseczno
MECOS AG, Winterthur
Meridional Auto S.A.S., Nmes
MKB Lease B.V., Amersfoort
Motorcam S.A., Buenos Aires
MRH S.A.S., Villeneuve d'Ascq
MW-Hallen Restaurang AB, Sdertlje
Nefkens Brabant B.V., Eindhoven
Nefkens Leeuw B.V., Veenendaal
Nefkens Noord B.V., Groningen
Nefkens Oost B.V., Apeldoorn
Nefkens Midden B.V., Utrecht
Nefkens Vastgoed B.V., Veenendaal
Ningbo Jiejun Automobile Sales and Service Co., Ltd., Ningbo
Niort Automobiles S.A.S., Niort
Norsk Scania A/S, Oslo
Norsk Scania Eiendom A/S, Oslo
Nouveau Garage des Flandres S.A.S., Wormhout
Nouveaux Garages Lensois S.A.S., Loison-sous-Lens
NSAA S.A.S., Chasseneuil-du-Poitou
Ocean Automobile S.A.S., Orvault
Officine del Futuro S.p.A., Sant'Agata Bolognese
OOO Autobusnaya Leasingovaya Compania Scania, Moscow

Exchange
rate
(1 =)
Currency Dec. 31, 2014
USD
AUD
EUR
EUR
BRL
CAD
CLP
CNY
EUR
EUR
EUR
HKD
INR
EUR
KRW
AED
USD
PKR
PKR
SAR
CHF
CNY
SGD
ZAR
GBP
TRY
USD
EUR
EUR
EUR
EUR
EUR
GBP
PLN
EUR
EUR
EUR
TRY
EUR
EUR
HUF
EUR
BRL
EUR
EUR
KRW
MYR
ZAR
THB
CZK
DKK
EUR
EUR
KZT
MXN
AED
AED
EUR
NOK
EUR
PLN
EUR
CHF
EUR
EUR
SEK
CNY
GBP
EUR
INR
EUR
EUR
PLN
CHF
EUR
EUR
ARS
EUR
SEK
EUR
EUR
EUR
EUR
EUR
EUR
CNY
EUR
NOK
NOK
EUR
EUR
EUR
EUR
EUR
RUB

1.2141
1.4829

3.2207
1.4063
736.9900
7.5358

9.4170
76.7190
1,324.8000
4.4573
1.2141
121.9870
121.9870
4.5537
1.2024
7.5358
1.6058
14.0353
0.7789
2.8320
1.2141

0.7789
4.2732

2.8320

315.5400
3.2207

1,324.8000
4.2473
14.0353
39.9100
27.7350
7.4453

221.9200
17.8679
4.4573
4.4573
9.0420
4.2732
1.2024

9.3930
7.5358
0.7789
76.7190

4.2732
1.2024

10.2725
9.3930

7.5358
9.0420
9.0420

72.3370

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
185,383
13,992
6,345
9,673
17,645
7,615
155,550
160,191
2,157
79,930
4,148
73,073
1,864,032
3,183
19,868,362
50,776
30,313
208,158
294,575
7,652
320,527
203,305
37,944
358,459
37,396
9,900
43,726
1,557,821
86
13,692
55,558
23,444
28,247
15,235
10,963
844
2,182
3,097,414
28,515
2,704,269
28,395
953,594
461,222
103,675
988,630
78,457
1,710
9,699
85,634
18,002
88,445
736,789
87,405
3,120
19,393
9,644
7,346
19,487
58,696
81,959
174,423
21,248,660
177,043
129,160
7,221
5,082
820
8,715
99,133
607
2,230
2,299
11,483
2,542
1,222
2,915
11
262,665
2,391
211,689
41,441
539
2,039
1,419
3,332
4,503
82,902

Profit/loss
in thousands,
local currency
5,390
165
1,849
1,001
-5,936
53
654,060
30,005
466
14,210
1,505
20,659
326,796
982
5,319,952
10,749
3,970
62,308
65,553
3,267
26,820
43,942
16,851
63,215
12,805
2,295
4,985
309
2,429
58
-19,300
2,655
9,791
9,296
-2,736
5,336
-4,142
1,570
365
317
192,788
1,917
215,575
-11,729
1,811
5,779,269
-4,024
35,395
11,151
43,403
2,424
4,365
2,286
-131,610
-53,139
372
417
17,457
47,157
8,394
54
992
272
1,309
4,852
-7,369
187
-2,889
965,286
8,225
6,978
1,020
503
-89
1,634
24,049
391
245
281
4
66
1,104
64,235
212
190,743
4,226
271
338
7
475
-842
29,059

Footnote

14)

14)

10)
6) 11)

14)

8)

14)

Year
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2014
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

OOO MAN Financial Services, Moscow
OOO MAN Truck & Bus Production RUS, Saint Petersburg
OOO MAN Truck and Bus RUS, Moscow
OOO Petroscan, Saint Petersburg
OOO Scania Leasing, Moscow
OOO Scania Peter, Saint Petersburg
OOO Scania Service, Golitsino
OOO Scania Strachovanie, Moscow
OOO Scania-Rus, Golitsino
OOO Volkswagen Bank RUS, Moscow
OOO Volkswagen Group Finanz, Moscow
OOO Volkswagen Group Rus, Kaluga
Oreda S.A.S., La Chapelle-Saint-Mesmin
P.B.O. S.A.S., Chasseneuil-du-Poitou
P.G.A Motors S.A.S., Paris
PAIG (China) Automobile Investment Co., Ltd., Hangzhou
Paris Est Evolution S.A.S., Saint-Thibault-des-Vignes
PBS Turbo s.r.o., Velk Btes
PCars LLC, Atlanta / GA
PCREST Ltd., Mississauga / ON
PCTX LLC, Atlanta / GA
PGA Belgique S.A., Tournai
PGA Facilitair B.V., Veenendaal
PGA Group S.A.S., Paris
PGA Motors B.V., Veenendaal
PGA Nederland N.V., Veenendaal
PGA Polska Sp. z o.o., Warsaw
P-G-A S.A., Paris
PGA Trsorerie S.A.S., Paris
PGAFI S.A.S., Chasseneuil-du-Poitou
Porsacentre S.L., Barcelona
Porsamadrid S.L., Madrid
Porsche (China) Motors Ltd., Shanghai
Porsche (Shanghai) Commercial Services Co., Ltd., Shanghai
Porsche Albania Sh.p.k., Tirana
Porsche Asia Pacific Pte. Ltd., Singapore
Porsche Austria GmbH & Co. OG, Salzburg
Porsche Auto Funding LLC, Atlanta / GA
Porsche Automotive Investment GmbH, Salzburg
Porsche Aviation Products, Inc., Atlanta / GA
Porsche Bank AG, Salzburg
Porsche Bank Hungaria Zrt., Budapest
Porsche Bank Romania S.A., Voluntari
Porsche BG EOOD, Sofia
Porsche Biztostskzvett Kft., Budapest
Porsche Broker de Asigurare S.R.L., Voluntari
Porsche Business Services, Inc., Atlanta / GA
Porsche Canadian Funding L.P., Mississauga / ON
Porsche Canadian Investment ULC, Mississauga / ON
Porsche Cars Australia Pty. Ltd., Collingwood
Porsche Cars Canada Ltd., Mississauga / ON
Porsche Cars Great Britain Ltd., Reading
Porsche Cars North America, Inc., Atlanta / GA
OOO Porsche Center Moscow, Moscow
Porsche Central and Eastern Europe s.r.o., Prague
Porsche Centre Beijing Central Ltd., Beijing
Porsche Centre Shanghai Waigaoqiao Ltd., Shanghai
Porsche Centre Shanghai Pudong Ltd., Shanghai
Porsche Cesk republika s.r.o., Prague
Porsche Chile SpA, Santiago de Chile
Porsche Clearing GmbH, Salzburg
Porsche Colombia S.A.S., Bogot
Porsche Consulting Ltd., Shanghai
Porsche Consulting Ltda., So Paulo
Porsche Consulting S.r.l., Milan
Porsche Consulting, Inc., Atlanta / GA
Porsche Corporate Finance GmbH, Salzburg
Porsche Croatia d.o.o., Velika Gorica
Porsche Design GmbH, Zell am See
Porsche Design of America, Inc., Ontario / CA
Porsche Distribution S.A.S., Vlizy-Villacoublay
Porsche Engineering Services s.r.o., Prague
Porsche Enterprises, Inc., Atlanta / GA
Porsche Financial Auto Securitization Trust 2011-1, Atlanta / GA
Porsche Financial Auto Securitization Trust 2014-1, Atlanta / GA
Porsche Financial Management Services Ltd., Dublin
Porsche Financial Services Australia Pty. Ltd., Collingwood
Porsche Financial Services Canada G.P., Mississauga / ON
Porsche Financial Services France S.A., Boulogne-Billancourt
Porsche Financial Services Great Britain Ltd., Reading
Porsche Financial Services Italia S.p.A., Padua
Porsche Financial Services Japan K.K., Tokyo
OOO Porsche Financial Services Russland, Moscow
Porsche Financial Services Schweiz AG, Zug
Porsche Financial Services, Inc., Atlanta / GA
Porsche France S.A., Boulogne-Billancourt
Porsche Funding L.P., Atlanta / GA
Porsche Geld LLC, Atlanta / GA
Porsche Haus S.r.l., Milan
Porsche Holding Finance plc., Dublin
Porsche Holding GmbH, Salzburg
Porsche Hong Kong Ltd., Hong Kong
Porsche Hungaria Kereskedelmi Kft., Budapest
Porsche Ibrica S.A., Madrid
Porsche Immobilien BG EOOD, Sofia

Exchange
rate
(1 =)
Currency Dec. 31, 2014
RUB
EUR
RUB
RUB
RUB
RUB
RUB
RUB
RUB
RUB
RUB
RUB
EUR
EUR
EUR
CNY
EUR
CZK
USD
CAD
USD
EUR
EUR
EUR
EUR
EUR
PLN
EUR
EUR
EUR
EUR
EUR
CNY
CNY
ALL
SGD
EUR
USD
EUR
USD
EUR
HUF
RON
BGN
HUF
RON
USD
CAD
CAD
AUD
CAD
GBP
USD
RUB
CZK
CNY
CNY
CNY
CZK
CLP
EUR
COP
CNY
BRL
EUR
USD
EUR
HRK
EUR
USD
EUR
CZK
USD
USD
USD
EUR
AUD
CAD
EUR
GBP
EUR
JPY
RUB
CHF
USD
EUR
USD
USD
EUR
EUR
EUR
HKD
HUF
EUR
BGN

72.3370
72.3370
72.3370
72.3370
72.3370
72.3370
72.3370
72.3370
72.3370
72.3370
72.3370

7.5358
27.7350
1.2141
1.4063
1.2141

4.2732

7.5358
7.5358
139.9500
1.6058
1.2141
1.2141
315.5400
4.4828
1.9558
315.5400
4.4828
1.2141
1.4063
1.4063
1.4829
1.4063
0.7789
1.2141
72.3370
27.7350
7.5358
7.5358
7.5358
27.7350
736.9900
2,899.0000
7.5358
3.2207
1.2141
7.6580
1.2141
27.7350
1.2141
1.2141
1.2141
1.4829
1.4063
0.7789
145.2300
72.3370
1.2024
1.2141
1.2141
1.2141

9.4170
315.5400
1.9558

VW AGs interest
in capital in %
Direct
Indirect
28.06
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
71.94
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
412,340
13,209
2,718,556
40,232
855,180
127,053
505,908
-44
3,711,112
9,036,325
474,797
31,292,273
814
472
197,517
187,296
3,609
461,534
12,761
3
451
312
133,702
7,971
48,347
25,338
76,577
1,273
187
2,875
457
1,488,583
5,342
755,954
14,159
27,348
112,086
69,609
624
300,988
8,586,754
93,238
16,556
6,400
26,355
6,148
69,482
731
45,040
51,477
76,081
645,206
724,128
42,230
58,712
33,067
129,331
611,939
24,525,898
6,465
16,026,487
558
-1,812
3,587
924
1,131,482
82,195
5,435
1,340
21,371
70,850
146,162
10,005
699
932
16,889
3,459
20,377
30,087
3,886,460
35,000
6,240
50,674
78,678
303,513
104
7,972
3,790,703
204,484
15,435,683
64,969
21,293

Profit/loss
in thousands,
local currency
-223,914
2,886
-132,313
-14,218
321,215
-22,957
12,955
-94
1,070,082
-47,950
73,593
3,885,650
-226
33
16,184
-4,674
339
119,326
2,890
-30
4
2,675
-53
-1,895
4,482
-2,439
412
48
2,716
32
1,344,768
1,330
32,436
4,539
25,032
11,093
-4,673
1
12,107
162,797
3,147
6,372
220,945
16,945
815
15,697
-1
14,027
11,655
21,128
146,421
75,928
9,690
22,819
-15,493
40,224
245,667
-3,287,208
1,072
7,605,002
-6,942
2,774
820
119
5,789
22,305
185
1,814
1,323
14,591
-901
47
2,005
75
252
319
1,812
5,184
3,327
230,469
8,134
4,438
7,886
4,572
7,486
188
89
688
203,416
917,536
1,817,230
3,220
-969

Footnote

12)

16)

6)

16)

16)
4) 6) 16)

16)

Year
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2013
2014
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2013
2014
2013
2014
2013
2014
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2013
2013
2013
2014
2014
2014
2014
2013
2013
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2013
2014
2013
2014
2013

Name and domicile of company

Porsche Immobilien CZ spol. s r.o., Prague
Porsche Immobilien GmbH & Co. KG, Salzburg
Porsche Immobilien GmbH, Salzburg
Porsche Immobilien S.R.L., Voluntari
Porsche Immobilien Slovakia spol s.r.o., Bratislava
Porsche Immobilienverwaltungs Kft., Budapest
Porsche Informatik GmbH, Salzburg
Porsche Innovative Lease Owner Trust 2012-1, Atlanta / GA
Porsche Innovative Lease Owner Trust 2013-1, Atlanta / GA
Porsche Innovative Lease Owner Trust 2014-1, Atlanta / GA
Porsche Insurance Broker BG EOOD, Sofia
Porsche Inter Auto BG EOOD, Sofia
Porsche Inter Auto CZ spol. s r.o., Prague
Porsche Inter Auto d.o.o., Ljubljana
Porsche Inter Auto d.o.o., Zagreb
Porsche Inter Auto GmbH & Co. KG, Salzburg
Porsche Inter Auto Hungaria Kft., Budapest
Porsche Inter Auto Polska Sp. z o.o., Warsaw
Porsche Inter Auto Romania S.R.L., Voluntari
Porsche Inter Auto S d.o.o., Belgrade
Porsche Inter Auto Slovakia, spol. s r.o., Bratislava
Porsche International Financing plc., Dublin
Porsche International Reinsurance Ltd., Dublin
Porsche Investment Corp., Atlanta / GA
Porsche Italia S.p.A., Padua
Porsche Japan K.K., Tokyo
Porsche Konstruktionen GmbH & Co. KG, Salzburg
Porsche Korea Ltd., Seoul
Porsche Kredit in Leasing SLO d.o.o., Ljubljana
Porsche Latin America, Inc., Miami / FL
Porsche Leasing BG EOOD, Sofia
Porsche Leasing d.o.o. Podgorica, Podgorica
Porsche Leasing d.o.o., Zagreb
Porsche Leasing dooel Skopje, Skopje
Porsche Leasing Ltd., Atlanta / GA
Porsche Leasing Romania IFN S.A., Voluntari
Porsche Leasing SCG d.o.o., Belgrade
Porsche Leasing SLO d.o.o., Ljubljana
Porsche Leasing Ukraine TOV, Kiev
Porsche Liquidity LLC, Atlanta / GA
Porsche Lizing s Szolgltat Kft., Budapest
Porsche Logistics Services LLC, Ontario / CA
Porsche Macedonia dooel, Skopje
Porsche Middle East and Africa FZE, Dubai
Porsche Mobiliti d.o.o., Zagreb
Porsche Mobility d.o.o., Belgrade
Porsche Mobility S.R.L., Voluntari
Porsche Mobility TOV, Kiev
Porsche Motorsport North America, Inc., Santa Ana / CA
Porsche Partner d.o.o., Belgrade
Porsche Retail Group Australia Pty Ltd., Collingwood
Porsche Retail Group Ltd., Reading
Porsche Romania S.R.L., Voluntari
OOO Porsche Russland, Chimki
Porsche SCG d.o.o., Belgrade
Porsche Schweiz AG, Zug
Porsche Services Ibrica, S.L., Madrid
Porsche Services Middle East & Africa FZE, Dubai
Porsche Services Singapore Pte Ltd., Singapore
Porsche Slovakia spol. s r.o., Bratislava
Porsche Slovenija d.o.o., Ljubljana
Porsche Ukraine TOV, Kiev
Porsche Versicherungs AG, Salzburg
Porsche Versicherungsagentur TOV, Kiev
Porsche Werbemittlung GmbH, Salzburg
Porsche Zagreb d.o.o., Zagreb
Porsche Zastupanje u Osiguranju d.o.o., Zagreb
Porsche Zavarovalno Zastopnistvo d.o.o., Ljubljana
Power Vehicle Co. Ltd., Bangkok
PPF Holding AG, Zug
Prcision Automobiles S.A.S., Paris
Premium Automobiles S.A.S., Paris
Premium II S.A.S., Montigny-le-Bretonneux
Premium Metropole Holding S.A.S., Villeneuve d'Ascq
Premium Metropole S.A.S., Villeneuve d'Ascq
Premium Picardie S.A.S., Rivery
Premium Tournai SPRL, Tournai
Premium Vlizy S.A.S., Vlizy-Villacoublay
Private Driver Espaa 2013-1, Fondo de Titulizacin de Activos, Madrid
Private VCL S.A., Luxembourg
Prophi S.A.S., Chasseneuil-du-Poitou
PT Scania Parts Indonesia, Balikpapan
Qanadeel AL Rafidain Automotive Trading Co. Ltd., Erbil
Raven Air Ltd., George Town
Reliable Vehicles Ltd., Milton Keynes
Renk Corp., Duncan / SC
Renk France S.A.S., Saint-Ouen-l'Aumne
Renk Systems Corp., Camby / IN
RENK-MAAG GmbH, Winterthur
Roosevelt II S.A.S., St. Alban-Leysse
S.A.N.D. Automobiles S.A.S., Roncq
S.N.A.T. S.A.S., Tourcoing
SACN - Socit Automobile Chauny Noyon S.A.S., Chauny
SADA S.A.S., Dunkirk
SADAL S.A.S. - Socit de Diffusion Automobile du Leman, Vtraz-Monthoux

Exchange
rate
(1 =)
Currency Dec. 31, 2014
CZK
EUR
EUR
RON
EUR
HUF
EUR
USD
USD
USD
BGN
BGN
CZK
EUR
HRK
EUR
HUF
PLN
RON
RSD
EUR
EUR
EUR
USD
EUR
JPY
EUR
KRW
EUR
USD
BGN
EUR
HRK
MKD
USD
RON
RSD
EUR
UAH
USD
HUF
USD
MKD
USD
HRK
RSD
RON
UAH
USD
RSD
AUD
GBP
RON
RUB
RSD
CHF
EUR
USD
SGD
EUR
EUR
UAH
EUR
UAH
EUR
HRK
HRK
EUR
THB
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
IDR
IQD
USD
GBP
USD
EUR
USD
CHF
EUR
EUR
EUR
EUR
EUR
EUR

27.7350

4.4828
315.5400
1.2141
1.2141
1.2141
1.9558
1.9558
27.7350
7.6580
315.5400
4.2732
4.4828
121.4400

1.2141
145.2300
1,324.8000
1.2141
1.9558
7.6580
61.4200
1.2141
4.4828
121.4400
19.1962
1.2141
315.5400
1.2141
61.4200
1.2141
7.6580
121.4400
4.4828
19.1962
1.2141
121.4400
1.4829
0.7789
4.4828
72.3370
121.4400
1.2024
1.2141
1.6058

19.1962
19.1962
7.6580
7.6580
39.9100
1.2024

15,076.1000
1,388.3000
1.2141
0.7789
1.2141
1.2141
1.2024

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
590,375
23,628
1,196,493
328,532
13,913
6,612,124
1,460
23,065
45,162
64,647
2,099
4,768
652,815
7,319
51,655
64,699
2,577,482
45,711
36,321
163,741
7,302
47,183
66,359
106
82,662
3,142,651
158,785
14,816,837
32,747
2,049
8,866
1,778
172,684
267,540
185,626
203,250
31,470
162
37,847
772,004
1,839
661,208
67,540
21,211
298,443
53,136
33,505
7,722
52,883
18,953
6,663
202,803
2,283,037
889,989
25,932
164
589
266
19,559
35,985
667,958
49,645
18,719
1,138
288,730
677
308
286
4,300
1,644
3,809
3,371
2,006
3,381
3,204
-1,045
31
6,939
16,314
9,691
16,103
923
15,392
411
2,478
1,310
1,441
1,765
7,031

Profit/loss
in thousands,
local currency
-25,640
902
-2,227
-3,155
132
494,057
-2,461
7,425
13,814
2,647
836
423
131,784
1,352
3,690
19,571
830,686
-3,815
6,884
3,166
1,496
1,952
14,819
-5,215
1,642,651
91,266
12,030,756
1,294
307
415
443
28,422
64,337
22,150
26,857
1,187
-3,123
10,276
-327,157
67
117,378
8,907
1,560
584,180
4,105
13,550
241
17,253
4,621
2,360
83,871
389,037
164,162
4,843
-136
306
-300
6,305
8,745
228,993
8,240
18,612
549
13,819
79
11
-61
1
194
1,988
821
-425
141
142
-1,005
2,113
-1,158
1,223
2,937
67
3,047
-1
498
-42
114
332
526

Footnote

Year

14)

2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2014
2014
2014
2013
2014
2013
2014
2013
2013
2013
2013
2014
2013
2013
2013
2013
2014
2013
2014
2013
2014
2013
2013
2013
2013
2014
2013
2014
2014
2013
2014
2013
2014
2014
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2014
2013
2014
2013
2013
2014
2013
2013
2013
2014
2014
2014
2014
2013
2013
2013
2013
2013
2013

16)
16)
4) 6) 16)

14)

16)

16)

7)
16)
16)
6)
11)
5)

Name and domicile of company

Safi S.A.S., Vitry-sur-Seine
Saintalb S.A.S., St. Alban-Leysse
Sancar S.A.S., Chasseneuil-du-Poitou
Sandrah S.A.S., Hnin-Beaumont
SANEG S.A.S., Carvin
Savoie Renault Occasion (Sareno) S.A.R.L., St.-Pierre-d'Albigny
Scan Siam Service Co. Ltd., Bangkok
Scanexpo International S.A., Montevideo
Scanexpo S.A., Montevideo
Scania (Hong Kong) Ltd., Hong Kong
Scania (Malaysia) Sdn. Bhd., Kuala Lumpur
Scania AB, Sdertlje
Scania Administradora de Consrcios Ltda., Cotia
Scania Argentina S.A., Buenos Aires
Scania Australia Pty. Ltd., Melbourne
Scania Banco S.A., So Paulo
Scania Belgium N.V., Neder-Over-Heembeek
Scania BH d.o.o., Sarajevo
Scania Bilbyggaren AB, Sdertlje
Scania Botswana (Pty) Ltd., Gaborone
Scania Bulgaria EOOD, Sofia
Scania Bus & Coach UK Ltd., Milton Keynes
Scania Bus Financing AB, Sdertlje
Scania Bus Nordic AB, Sdertlje
Scania Central Asia LLP, Almaty
Scania Chile S.A., Santiago de Chile
Scania Colombia S.A., Bogot
Scania Comercial, S.A. de C.V., Queretaro
Scania Commercial Vehicles India Pvt. Ltd., Bangalore
Scania Commercial Vehicles Renting S.A., Madrid
Scania Commerciale S.p.A., Trento
Scania Corretora de Seguros Ltda., So Paulo
Scania Credit (Hong Kong) Ltd., Hong Kong
Scania Credit (Malaysia) Sdn. Bhd., Selangor
Scania Credit AB, Sdertlje
Scania Credit Hrvatska d.o.o., Lucko
Scania Credit Romania IFN S.A., Ciorogrla
Scania Credit Solutions Pty Ltd., Nairobi
Scania Credit Taiwan Ltd., Taipei
Scania CV AB, Sdertlje
Scania Czech Republic s.r.o., Prague
Scania Danmark A/S, Ishj
Scania Danmark Ejendom ApS, Ishj
Scania de Venezuela S.A., Valencia
Scania del Per S.A., Lima
Scania Delivery Center AB, Sdertlje
Scania Driver Training S.R.L., Ciorogrla
Scania East Africa Ltd., Nairobi
Scania Eesti AS, Tallinn
Scania Finance Belgium N.V., Neder-Over-Heembeek
Scania Finance Bulgaria EOOD, Sofia
Scania Finance Chile S.A., Santiago de Chile
Scania Finance Czech Republic spol. s r.o., Prague
Scania Finance France S.A.S., Angers
Scania Finance Great Britain Ltd., London
Scania Finance Hispania EFC S.A., Madrid
Scania Finance Holding AB, Sdertlje
Scania Finance Holding Great Britain Ltd., London
Scania Finance Ireland Ltd., Dublin
Scania Finance Italy S.p.A., Milan
Scania Finance Korea Ltd., Kyungam
Scania Finance Luxembourg S.A., Mnsbach
Scania Finance Magyarorszg Zrt., Biatorbgy
Scania Finance Nederland B.V., Breda
Scania Finance Polska Sp. z o.o., Nadarzyn
Scania Finance Pty. Ltd., Melbourne
Scania Finance Schweiz AG, Kloten
Scania Finance Slovak Republic s.r.o., Senec
Scania Finance Southern Africa (Pty) Ltd., Aeroton
Scania Finans AB, Sdertlje
Scania France S.A.S., Angers
Scania Great Britain Ltd., Milton Keynes
Scania Group Treasury Belgium N.V., Neder-Over-Heembeek
Scania Hispania Holding S.L., Madrid
Scania Hispania S.A., Madrid
Scania Holding Europe AB, Sdertlje
Scania Holding France S.A.S., Angers
Scania Holding Inc., Columbus / IN
Scania Hrvatska d.o.o., Zagreb
Scania Hungaria Kft., Biatorbgy
Scania Incheon Ltd., Incheon
Scania Insurance Belgium N.V., Neder-Over-Heembeek
Scania Insurance Nederland B.V., Middelharnis
Scania Insurance Polska Sp. z o.o., Nadarzyn
Scania Investimentos Imobilirios S.A., Vialonga
Scania IT AB, Sdertlje
Scania IT France S.A.S., Angers
Scania IT Nederland B.V., Zwolle
Scania Japan Ltd., Tokyo
Scania Korea Ltd., Seoul
Scania Korea Seoul Ltd., Seoul
Scania Latin America Ltda., So Bernardo do Campo
Scania Latvia SIA, Riga
Scania Leasing d.o.o., Ljubljana
Scania Leasing Ltd., Dublin

Exchange
rate
(1 =)
Currency Dec. 31, 2014
EUR
EUR
EUR
EUR
EUR
EUR
THB
UYU
UYU
HKD
MYR
SEK
BRL
ARS
AUD
BRL
EUR
BAM
SEK
BWP
BGN
GBP
SEK
SEK
KZT
CLP
COP
MXN
INR
EUR
EUR
BRL
HKD
MYR
EUR
HRK
RON
KES
TWD
SEK
CZK
DKK
DKK
VEF
PEN
SEK
RON
KES
EUR
EUR
BGN
CLP
CZK
EUR
GBP
EUR
SEK
GBP
EUR
EUR
KRW
EUR
HUF
EUR
PLN
AUD
CHF
EUR
ZAR
SEK
EUR
GBP
SEK
EUR
EUR
SEK
EUR
USD
HRK
HUF
KRW
EUR
EUR
PLN
EUR
SEK
EUR
EUR
JPY
KRW
KRW
BRL
LVL
EUR
EUR

39.9100
29.1370
29.1370
9.4170
4.2473
9.3930
3.2207
10.2725
1.4829
3.2207
1.9558
9.3930
11.5412
1.9558
0.7789
9.3930
9.3930
221.9200
736.9900
2,899.0000
17.8679
76.7190

3.2207
9.4170
4.2473
7.6580
4.4828
110.1300
38.4259
9.3930
27.7350
7.4453
7.4453
7.6358
3.6334
9.3930
4.4828
110.1300

1.9558
736.9900
27.7350
0.7789
9.3930
0.7789

1,324.8000
315.5400
4.2732
1.4829
1.2024
14.0353
9.3930
0.7789
9.3930

9.3930
1.2141
7.6580
315.5400
1,324.8000

4.2732
9.3930

145.2300
1,324.8000
1,324.8000
3.2207
0.7028

VW AGs interest
in capital in %
Direct
Indirect
86.22
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
13.35
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.57
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
5,717
3,119
7,339
1,572
1,397
170
45,125
192,487
15,806
49,084
19,602,148
97,419
841,649
46,500
153,452
40,378
2,346
1,979,402
25,676
10,556
-1,980
120
1,171,897
12,316,226
5,091,821
524,528
493,046
60,871
5,975
9,229,457
-425
8,648
4,896
12,422
62,470
20,031,496
30,963
249,772
96,318
87,243
19,989
64,264
14,432
-236
5,563
11,467
4,468
3,491,469
428,568
28,524
65,273
73,253
680,546
3,769
435
75,870
49,654,701
4,001
487,494
53,149
113,832
2
4,413
5,403
-240,346
199,120
41,831
47,126
1,308
60,020
16,888
50,292,947
75,893
11,094
18,467
877,405
-681,078
89
904
64,687
1,482
2,370
3,557
17,243,445
1,446,672
4,041
1,315
-

Profit/loss
in thousands,
local currency
21
226
1,046
383
345
-19
12,125
-88
21,719
12,635
7,000,000
14,746
329,377
6,263
-955
3,047
-93
20,062
5,461
2,162
-5,838
-15,794
204,422
-3,904,867
198
-284,677
1,508
-178
-770,544
-1,509
975
3,438
5,991
25,336
-4,968,504
3,423
70,083
-11,970
9,213
3,332
6,819
2,220
-7
1,101
1,013
2,196
1,191,713
-69,924
2,041
11,342
-816
-29,115
467
-3,091
2,363,078
195
206,326
4,691
22,651
0
244
1,778
36,421
69,302
3,493
36,073
93
5,000
6,742
736,462
7,239
-244
-1,570
547,235
-731,077
-8
-209
-114,408
72
118
-39,444
-15,705,778
1,048,890
880
306
-

Footnote

5)

10)
14)

5)
5)

11)

14)

5)
6)

5)

10)
5)

11)
15)

6)

5)

Year
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2012
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013

Name and domicile of company

Scania Leasing sterreich Ges.m.b.H., Brunn am Gebirge
Scania Lzing Kft., Biatorbgy
Scania Location S.A.S., Angers
Scania Logistics Netherlands B.V., Zwolle
Scania Luxembourg S.A., Mnsbach
Scania Marketing Support AB, Sdertlje
Scania Maroc S.A., Casablanca
Scania Middle East FZE, Dubai
Scania Milano S.p.A., Trento
Scania Nederland B.V., Breda
Scania Omni AB, Sdertlje
Scania sterreich Ges.m.b.H., Brunn am Gebirge
Scania sterreich Holding GmbH, Brunn am Gebirge
Scania Overseas AB, Sdertlje
Scania Parts Logistics AB, Sdertlje
Scania Polska S.A., Nadarzyn
Scania Power Polska Sp. z o.o., Warsaw
Scania Portugal S.A., Vialonga
Scania Production Angers S.A.S., Angers
Scania Production Meppel B.V., Meppel
Scania Production Slupsk S.A., Slupsk
Scania Production Zwolle B.V., Zwolle
Scania Projektfinans AB, Sdertlje
Scania Properties Ltd., Milton Keynes
Scania Real Estate (UK) Ltd., Milton Keynes
Scania Real Estate AB, Sdertlje
Scania Real Estate Belgium N.V., Neder-Over-Heembeek
Scania Real Estate Bulgaria EOOD, Sofia
Scania Real Estate Czech Republic s.r.o., Prague
Scania Real Estate d.o.o. Beograd, Belgrade
Scania Real Estate Finland Oy, Helsinki
Scania Real Estate France S.A.S., Angers
Scania Real Estate Hispania S.L., Pontevedra
Scania Real Estate Holding Luxembourg S.r.l, Mnsbach
Scania Real Estate Holding Oy, Helsinki
Scania Real Estate Hong Kong Ltd., Hong Kong
Scania Real Estate Hungaria Kft., Biatorbgy
Scania Real Estate Lund AB, Sdertlje
Scania Real Estate sterreich GmbH, Brunn am Gebirge
Scania Real Estate Polska Sp. z.o.o., Nadarzyn
Scania Real Estate Romania S.R.L., Ciorogrla
Scania Real Estate Schweiz AG, Kloten
Scania Real Estate Services AB, Sdertlje
Scania Real Estate Slovakia s.r.o., Senec
Scania Real Estate The Netherlands B.V., Breda
Scania Regional Agent de Asigurare S.R.L., Ciorogrla
Scania Rent Romania S.R.L., Ciorogrla
Scania Romania S.R.L., Ciorogrla
Scania Sales (China) Co., Ltd., Beijing
Scania Sales and Service (Guangzhou) Co., Ltd., Guangzhou
Scania Sales and Services AB, Sdertlje
Scania Saltskogen AB, Sdertlje
Scania Schweiz AG, Kloten
Scania Services del Per S.A., Lima
Scania Services S.A., Buenos Aires
Scania Servicios, S.A. de C.V., Queretaro
Scania Siam Co. Ltd., Bangkok
Scania Siam Leasing Co. Ltd., Bangkok
Scania Singapore Pte. Ltd., Singapore
Scania Slovakia s.r.o., Senec
Scania Slovenija d.o.o., Ljubljana
Scania South Africa (Pty) Ltd., Sandton
Scania Srbija d.o.o., Krnjeevci
Scania Suomi Oy, Helsinki
Scania Sverige Bussar AB, Sdertlje
Scania Tanzania Ltd., Dar es Salaam
Scania Thailand Co. Ltd., Bangkok
Scania Trade Development AB, Sdertlje
Scania Transportlaboratorium AB, Sdertlje
Scania Treasury AB, Sdertlje
Scania Treasury Belgium N.V., Neder-Over-Heembeek
Scania Treasury Luxembourg S..r.l., Luxembourg
Scania Truck Financing AB, Sdertlje
Scania Trucks & Buses AB, Sdertlje
Scania USA Inc., San Antonio / TX
Scania Used Vehicles AB, Sdertlje
Scania West Africa Ltd., Accra
Scania-Bilar Sverige AB, Sdertlje
Scania-Kringlan AB, Sdertlje
Scanlink Ltd., Milton Keynes
Scanrent - Alguer de Viaturas sem Condutor, S.A., Santa Iria de Azia
Scantruck Ltd., Milton Keynes
SCI 108 Pasteur, Chasseneuil-du-Poitou
SCI Actipolis, Chasseneuil-du-Poitou
SCI Carlet, Chasseneuil-du-Poitou
SCI Carsan, Chasseneuil-du-Poitou
SCI Croix Mesnil, Chasseneuil-du-Poitou
SCI de la rue des Chantiers, Chasseneuil-du-Poitou
SCI de la rue du Blason, Chasseneuil-du-Poitou
SCI de la Tour, Villeneuve d'Ascq
SCI de Loison, Chasseneuil-du-Poitou
SCI des Petites Haies de Valenton, Chasseneuil-du-Poitou
SCI des Pres, Chasseneuil-du-Poitou
SCI Dieu & Compagnie, Chasseneuil-du-Poitou
SCI du Billemont, Roncq

Exchange
rate
(1 =)
Currency Dec. 31, 2014
EUR
HUF
EUR
EUR
EUR
SEK
MAD
AED
EUR
EUR
SEK
EUR
EUR
SEK
SEK
PLN
PLN
EUR
EUR
EUR
PLN
EUR
SEK
GBP
GBP
SEK
EUR
BGN
CZK
RSD
EUR
EUR
EUR
EUR
EUR
HKD
HUF
SEK
EUR
PLN
RON
CHF
SEK
EUR
EUR
RON
RON
RON
CNY
CNY
SEK
SEK
CHF
PEN
ARS
MXN
THB
THB
SGD
EUR
EUR
ZAR
RSD
EUR
SEK
TZS
THB
SEK
SEK
SEK
SEK
SEK
SEK
SEK
USD
SEK
GHS
SEK
SEK
GBP
EUR
GBP
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

315.5400

9.3930
10.9904
4.4573

9.3930

9.3930
9.3930
4.2732
4.2732

4.2732
9.3930
0.7789
0.7789
9.3930
1.9558
27.7350
121.4400

9.4170
315.5400
9.3930
4.2732
4.4828
1.2024
9.3930

4.4828
4.4828
4.4828
7.5358
7.5358
9.3930
9.3930
1.2024
3.6334
10.2725
17.8679
39.9100
39.9100
1.6058

14.0353
121.4400
9.3930
2,103.0900
39.9100
9.3930
9.3930
9.3930
9.3930
9.3930
9.3930
9.3930
1.2141
9.3930
3.8652
9.3930
9.3930
0.7789
0.7789

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
99.91
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
99.91
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
9,539
474,797
11,587
1,923
2,316
6,000
93,572
-422
374
8,682
6,242
18,621
95,021
120
94,803
4,630
30,018
11,154
49,322
49,815
52,490
5,861
75,825
12,553
68
115,951
702
5,917
2,995
913
7,079
893,420
105
9,425
33,546
-249
2,051
1,168,233
2,855
19,001
353
-250
12,243
74,701
23,334
1,724,082
223,185
18,617
10,170
8,864
14,132
275,955
189,371
9,962
11,349
6,435
261,181
224,407
25,154
42,966
3,000,000
84,715
362,186
3,486
6,852,452
2,744
801,410
15,924,542
122,750
2,803
4,518
146,145
100
21,500
94
206
478
408
212
81
59
221
20
216
170
-64
248

Profit/loss
in thousands,
local currency
660
39,334
121
923
468
20,009
-2,301
-350
-713
1,439
-5
-3
5,626
-323
1,854
967
2,178
4,034
2,525
284
577
55
-5
17,961
-102
347
-5
74
-23
66,312
1,047
1,003
1,546
-256
512
19,075
61
2,627
87
599
-2,484
-40,231
-6,666
-570,127
76,023
15,153
5,834
1,514
4,355
68,274
55,564
5,654
787
1,003
97,218
22,892
16,224
670,497
17,125
40,714
1,523
70,486
13
568,787
230,112
-12,230
-1,778
-7,319
19,071
877
92
204
154
105
151
74
58
220
18
215
168
-64
187

Footnote

5)

5)

5)
6)

5)

15)
6)

5)

6)
5)
5)
5)

Year
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2012
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

SCI du Boulevard d'Halluin, Chasseneuil-du-Poitou
SCI du Carrefour de Courrieres, Chasseneuil-du-Poitou
SCI du Pont Rouge, Chasseneuil-du-Poitou
SCI du Prieure, Chasseneuil-du-Poitou
SCI du Ruisseau, Chasseneuil-du-Poitou
SCI Faema, Villers-Cotterts
SCI Foch 47, Plouigneau
SCI Fond du Val, Chasseneuil-du-Poitou
SCI GMC, Chasseneuil-du-Poitou
SCI Heninoise de l'Automobiles, Chasseneuil-du-Poitou
SCI La Vrillonnerie, Chasseneuil-du-Poitou
SCI Lavoisier Novo, Chasseneuil-du-Poitou
SCI Lea, Chasseneuil-du-Poitou
SCI Les Champs Dronckaert, Chasseneuil-du-Poitou
SCI Les Ribes Plein Sud, Chasseneuil-du-Poitou
SCI Lievinoise, Chasseneuil-du-Poitou
SCI R19, St. Jean-de-Maurienne
SCI Santa Sofia, St. Alban-Leysse
SCI SCENI II, St. Alban-Leysse
SCI Servagnin, St. Alban-Leysse
SCI Sipamar, Thonon-les-Bains
SCI Thomas, Chasseneuill-du-Poitou
SEAT Austria GmbH, Salzburg
SEAT Motor Espaa S.A., Barcelona
SEAT Portugal Unipessoal, Lda., Lisbon
SEAT, S.A., Martorell
Securycar S.A.S., Paris
Sevilla Wagen, S.A., Seville
SITECH Sp. z o.o., Polkowice
SKODA AUTO a.s., Mlad Boleslav
SKODA AUTO India Pvt. Ltd., Aurangabad
SKODA AUTO Slovensko, s.r.o., Bratislava
koFIN s.r.o., Prague
Skywalker Ltd., George Town
Smit & Co. Zwolle B.V., Zwolle
SNAB S.A., Zaventem
Sochaux Motors S.A.S., Paris
Socit Angrienne de Vhicules Industriels (SAVIA) S.A.S., Chauray
Socit Commerciale Automobile du Poitou (S.C.A.P.) S.A.S., Poitiers
Socit Commerciale Diffusion Automobile du Poitou S.A.S., Poitiers
Socit de Distribution Automobile Laonnoise S.A.S., Chambry
Socit de Mcanique de Prcision de I'Aubois, Jouet-sur-l'Aubois
Socit de Vente d'Automobiles de Crteil SVAC S.A.S., Crteil
Socit des Automobiles de la Thierache S.A.S., Hirson
Socit des Automobiles du Soissonnais S.A.S., Billy-sur-Aisne
Socit d'Exploitation Garage Carlet S.A.S., Chasseneuil-du-Poitou
Socit Valentinoise de Commerce Automobile - SOVACA S.A.S., Valence
Sdertlje Bil Invest AB, Sdertlje
Sdertlje Bilkredit AB, Sdertlje
SOE Busproduction Finland Oy, Lahti
Sofidem S.A.S., Saint-Thibault-des-Vignes
Somat S.A.R.L., Saint-Cyr-sur-Loire
Sonauto Lille S.A.S., Villeneuve d'Ascq
Sonauto Reims S.A.S., Thillois
Sonauto Roissy S.A.S., Villeneuve d'Ascq
Southway Scania Ltd., Milton Keynes
SRE Kiruna AB, Sdertlje
Stockholms Industriassistans AB, Sdertlje
Sonauto S.A.S., Villeneuve d'Ascq
Stuttgart Motors S.A.S., Paris
Suvesa Super Veics Pesados Ltda., Eldorado do Sul
Suzhou Binjie Automobile Sales and Service Co., Ltd., Suzhou
Suzhou Jiejun Automobile Sales and Service Co., Ltd., Suzhou
Suzhou Jiejun Automobile Trading Co., Ltd., Suzhou
Suzhou Junbaohang Automobile Sales and Service Co., Ltd., Suzhou
Taizhou Junbaojie Automobile Sales and Service Co., Ltd., Taizhou
Techstar 86 S.A.R.L., Poitiers
Techstar Marne La Valle S.A.S., Montvrain
Techstar Meaux S.A.S., Meaux
Techstar S.A.S., Vert-Saint-Denis
Terwolde B.V., Groningen
Terwolde Holding B.V., Veenendaal
TF Motors S.A.S., Chasseneuil-du-Poitou
Touraine Automobiles S.A.S., St. Cyr-sur-Loire
Tourisme Automobiles S.A.R.L., Angers
TOV Donbas-Scan-Service, Makeyevka
TOV Kyiv-Scan, Kiev
TOV MAN Truck & Bus Ukraine, Kiev
TOV Scania Credit Ukraine, Kiev
TOV Scania Ukraine, Kiev
TOV Scania-Lviv, Lviv
Trembler Air Ltd., George Town
Scania Namibia (Pty) Ltd., Windhoek
Trucknology S.A., Luxembourg
UAB Scania Lietuva, Vilnius
Universeel Autoschadeherstelbedrijf B.V., Utrecht
Union Trucks Ltd., Milton Keynes
Vabis Bilverkstad AB, Sdertlje
Vabis Frskringsaktiebolag, Sdertlje
Valiege S.A.S., Orvault
Valladolid Wagen, S.A., Valladolid
VCI Loan Services, LLC, Salt Lake City / UT
VCL Master Residual Value S.A., Luxembourg
VCL Master S.A., Luxembourg
VCL Multi-Compartment S.A., Luxembourg

Exchange
rate
(1 =)
Currency Dec. 31, 2014
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
PLN
CZK
INR
EUR
CZK
USD
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
SEK
SEK
EUR
EUR
EUR
EUR
EUR
EUR
GBP
SEK
SEK
EUR
EUR
BRL
CNY
CNY
CNY
CNY
CNY
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
UAH
UAH
UAH
UAH
UAH
UAH
USD
NAD
EUR
LTL
EUR
GBP
SEK
SEK
EUR
EUR
USD
EUR
EUR
EUR

4.2732
27.7350
76.7190
27.7350
1.2141

9.3930
9.3930

0.7789
9.3930
9.3930

3.2207
7.5358
7.5358
7.5358
7.5358
7.5358

19.1962
19.1962
19.1962
19.1962
19.1962
19.1962
1.2141
14.0405
3.4528
0.7789
9.3930
9.3930

1.2141

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-

Total
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-

Equity
in thousands,
local currency
85
854
304
221
65
133
97
52
496
-89
199
87
134
76
647
136
178
125
10
-259
81
16
7,604
-2,504
240
491,500
1,737
5,205
545,998
90,315,827
3,132,485
15,289
4,410,525
1,491
38,213
4,398
8,267
3,210
2,457
129
1,783
873
1,805
649
1,697
480,600
100
3,644
851
2,686
1,489
650
120
11,069
7,272
12,750
79,363
20,965
151,343
9,683
74,725
137,696
1,167
1,056
1,546
8,896
2,620
-2,492
575
1,595
1,595
21,255
28,052
6,416
-14,579
38,437
50,539
31
15,749
1,049
101
132,091
377
1,446
31
31
31

Profit/loss
in thousands,
local currency
83
68
302
209
64
44
22
51
291
-56
115
85
132
75
357
135
163
77
78
58
12
2,407
-3,921
-7
-148,700
1,692
-591
127,235
11,385,567
-852,586
1,339
366,067
-49
1,786
476
-272
279
436
-782
164
227
271
181
-1,425
-13,774
660
-29
227
-134
-893
-588
-76
398
10,257
-2,035
43,847
-20,992
-1,770
36,284
202
56
112
593
1
-6
-355
-565
51
335
-33,934
15,804
-25,781
-1,291
11,827
2,522
124
17
331
-

Footnote

14)

12)
3)

6)
7)

5)
6)

5)
8) 14)

11)
16)

5)
5)

11)
6) 16)
16)
16)

Year
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2014
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013

Name and domicile of company

Verdun-Aix S.A.S., Aix-en-Provence
Vienne Sud Automobiles S.A.S., Civray
Vindbron Arendal AB, Sdertlje
Vitry Automobiles S.A.S., Vitry-sur-Seine
Volkswagen (China) Investment Co., Ltd., Beijing
Volkswagen Argentina S.A., Buenos Aires
Volkswagen Auto Lease Entity, LLC, Herndon / VA
Volkswagen Auto Lease Loan Underwritten Funding, LLC, Herndon / VA
Volkswagen Auto Loan Vehicle, LLC, Herndon / VA
Volkswagen Auto Securitization Transaction, LLC, Herndon / VA
Volkswagen Autoeuropa, Lda., Quinta do Anjo
Volkswagen Automatic Transmission (Dalian) Co., Ltd., Dalian
Volkswagen Automatic Transmission (Tianjin) Co., Ltd., Tianjin
Volkswagen Automotive Finance, LLC, Herndon / VA
Volkswagen Bank Polska S.A., Warsaw
Volkswagen Bank S.A., Institucin de Banca Mltiple, Puebla
Volkswagen BCN, S.A., Barcelona
Volkswagen Corretora de Seguros Ltda., So Paulo
Volkswagen Credit Compana Financiera S.A., Buenos Aires
Volkswagen de Mxico, S.A. de C.V., Puebla
Volkswagen Dealer Finance, LLC, Herndon / VA
Volkswagen do Brasil Indstria de Veculos Automotores Ltda., So Bernardo do Campo
Volkswagen Enhanced Auto Lease, LLC, Herndon / VA
Volkswagen Finance (China) Co., Ltd., Beijing
Volkswagen Finance Belgium S.A., Brussels
Volkswagen Finance Cooperation B.V., Amsterdam
Volkswagen Finance Luxemburg S.A., Luxembourg
Volkswagen Finance Overseas B.V., Amsterdam
Volkswagen Finance Pvt. Ltd., Mumbai
Volkswagen Finance S.A. - Establecimiento financiero de crdito - , Madrid
Volkswagen Financial Services (UK) (June) Ltd., Milton Keynes
Volkswagen Financial Services (UK) (March) Ltd., Milton Keynes
Volkswagen Financial Services (UK) (September) Ltd., Milton Keynes
Volkswagen Financial Services (UK) Ltd., Milton Keynes
Volkswagen Financial Services Australia Pty. Ltd., Chullora
Volkswagen Financial Services Japan Ltd., Tokyo
Volkswagen Financial Services Korea Co., Ltd., Seoul
Volkswagen Financial Services N.V., Amsterdam
Volkswagen Finann sluby Slovensko s.r.o., Bratislava
Volkswagen Finans Sverige AB, Sdertlje
Volkswagen Global Finance Holding B.V., Amsterdam
Volkswagen Group Australia Pty Ltd., Chullora
Volkswagen Group Canada, Inc., Ajax / ON
Volkswagen Group Firenze S.p.A., Florence
Volkswagen Group France S.A., Villers-Cotterts
Volkswagen Group Import Co., Ltd., Tianjin
Volkswagen Group Ireland Ltd., Dublin
Volkswagen Group Italia S.p.A., Verona
Volkswagen Group Japan K.K., Toyohashi
Volkswagen Group of America Chattanooga Operations, LLC, Chattanooga / TN
Volkswagen Group of America Finance, LLC, Herndon / VA
Volkswagen Group of America, Inc., Herndon / VA
Volkswagen Group Polska Sp. z o.o., Pozna
Volkswagen Group Retail Spain, S.L., Barcelona
Volkswagen Group Sales India Pvt. Ltd., Mumbai
Volkswagen Group Services S.A., Brussels
Volkswagen Group Singapore Pte. Ltd., Singapore
Volkswagen Group Sverige AB, Sdertlje
Volkswagen Group United Kingdom Ltd., Milton Keynes
Volkswagen Holding Financire s.a., Villers-Cotterts
Volkswagen Holding sterreich GmbH, Salzburg
Volkswagen Independent Borrowing Entity, LLC, Herndon / VA
Volkswagen India Pvt. Ltd., Pune
Volkswagen International Finance N.V., Amsterdam
Volkswagen International Luxemburg S.A., Luxembourg
Volkswagen International Payment Services N.V., Amsterdam
Volkswagen Japan Sales K.K., Tokyo
Volkswagen Leasing S.A. de C.V., Puebla
Volkswagen Madrid, S.A., Madrid
Volkswagen Motor Polska Sp. z o.o., Polkowice
Volkswagen Navarra, S.A., Pamplona
Volkswagen of South Africa (Pty) Ltd., Uitenhage
Volkswagen Operating Lease Transaction, LLC, Herndon / VA
Volkswagen Participaes Ltda., So Paulo
Volkswagen Poznan Sp. z o.o., Pozna
Volkswagen Public Auto Loan Securitization, LLC, Herndon / VA
Volkswagen Renting, S.A., Madrid
Volkswagen S.A. de Ahorro Para Fines Determinados, Buenos Aires
Volkswagen Servios Ltda., So Paulo
Volkswagen Slovakia, a.s., Bratislava
Volkswagen-Audi Espaa, S.A., El Prat de Llobregat
Volkswagen-Versicherungsdienst GmbH, Vienna
VSJ01 Tokutei Special Purpose Company, in liquidation, Tokyo
VW Credit Canada Funding GP, Inc., Ajax / ON
VW Credit Canada Funding L.P., Ajax / ON
VW Credit Canada, Inc., St. Laurent / QC
VW Credit Canada Leasing ULC, Calgary / AL
VW Credit Leasing Ltd., Herndon / VA
VW Credit, Inc., Herndon / VA
Westrucks Ltd., Milton Keynes
Wittenberg B.V., Duiven
Wittenberg Holding B.V., Veenendaal
Wolfsburg Motors S.A.S., Paris
Zhejiang Jiejun Automobile Sales and Service Co., Ltd., Hangzhou
ZSF Services S.A.S., Paris

Exchange
rate
(1 =)
Currency Dec. 31, 2014
EUR
EUR
SEK
EUR
CNY
ARS
USD
USD
USD
USD
EUR
CNY
CNY
USD
PLN
MXN
EUR
BRL
ARS
MXN
USD
BRL
USD
CNY
EUR
EUR
EUR
EUR
INR
EUR
GBP
GBP
GBP
GBP
AUD
JPY
KRW
EUR
EUR
SEK
EUR
AUD
CAD
EUR
EUR
CNY
EUR
EUR
JPY
USD
USD
USD
PLN
EUR
INR
EUR
SGD
SEK
GBP
EUR
EUR
USD
INR
EUR
EUR
EUR
JPY
MXN
EUR
PLN
EUR
ZAR
USD
BRL
PLN
USD
EUR
ARS
BRL
EUR
EUR
EUR
JPY
CAD
CAD
CAD
CAD
USD
USD
GBP
EUR
EUR
EUR
CNY
EUR

9.3930
7.5358
10.2725
1.2141
1.2141
1.2141
1.2141
7.5358
7.5358
1.2141
4.2732
17.8679
3.2207
10.2725
17.8679
1.2141
3.2207
1.2141
7.5358

76.7190
0.7789
0.7789
0.7789
0.7789
1.4829
145.2300
1,324.8000

9.3930
1.4829
1.4063

7.5358

145.2300
1.2141
1.2141
1.2141
4.2732
76.7190
1.6058
9.3930
0.7789

1.2141
76.7190

145.2300
17.8679
4.2732
14.0353
1.2141
3.2207
4.2732
1.2141
10.2725
3.2207

145.2300
1.4063
1.4063
1.4063
1.4063
1.2141
1.2141
0.7789

7.5358

VW AGs interest
in capital in %
Direct
Indirect
100.00
100.00
100.00
100.00
10.02
100.00
90.98
70.00
100.00
100.00
90.99
100.00
-

20.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
89.98
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
9.02
30.00
100.00
100.00
100.00
9.01
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
20.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
3,838
985
15,406
1,294
31,266,451
361,532
372,367
1,683,386
1,658,190
292,926
1,283,000
636
39,642
67,537
34,147,407
4,004,743
3,531,583
321,328
3,968,656
522,430
11,480,390
394,232
500,900
183,074
9,443,274
115,411,000
606,394
44,190
1,753,706
130
114,787
222,103
481
243,349
1,027,704
10,429
455,423
26,263,195
167,000
730,939
288,841
27,482
3,445,230
10,321,922
27,713
880,886
699,800
193,897
3,323,395
18,436,200
4,807,105
1,332
265,778
3,429,260
2,822,871
2,427
842,538
668,175
10,680,096
2,276,474
2,526,493
14,824
83,325
26,302
1,329,369
115,581
13,660
11,773
2,556,734
1,345
2,859
12,766
272,901
531

Profit/loss
in thousands,
local currency
73
77
1,395
132
6,816,976
119,833
34,598
-864,402
-130,215
33,854
195,000
-639
15,443
14,413
5,181,821
488,157
346,384
4,365
-98
48,695
-96
-365,387
33,426
96,400
10,263
1,149,965
8,210,000
16,670
4,869
27
7,179
13,053
-1,687
55,477
-20,332
2,561
24,196
1,023,653
51,000
65,655
54,950
-1,308
631,860
157,883
-3,169
159,835
97,500
643
-1,236
4,207,550
912,964
1,293
9,096
451,399
787,384
-100
125,328
52,917
2,326,290
184,029
417,903
-4,650
64,845
3,459
124,249
15,533
2,640
9
272,915
-394
1,315
59,158
257

Footnote

11) 16)
11) 16)
11) 16)
11) 16)

11) 16)
12)

12)
11) 16)
11) 16)

14)
3)
5)
5)
5)

12)

12)
6)
12)

3)

11) 16)
3)

12)
12)
11) 16)

11) 16)

12)

2) 16)
11) 16)
11) 16)
11)
11)
11)
10) 12)
5)

Year
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2014
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2014
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

Exchange
rate
(1 =)
Currency Dec. 31, 2014

B. Unconsolidated companies
1. Germany
4Collection GmbH, Braunschweig
ALU-CAR GmbH, Winterberg
Audi Business Innovation GmbH, Ingolstadt
Audi e-gas Betreibergesellschaft mbH, Ingolstadt
AUDI Immobilien Verwaltung GmbH, Ingolstadt
Audi Neckarsulm Immobilien GmbH, Neckarsulm
Audi Planung GmbH, Ingolstadt
Audi Real Estate GmbH, Ingolstadt
Audi Stiftung fr Umwelt GmbH, Ingolstadt
Aumonta GmbH, Augsburg
Auto Union GmbH, Ingolstadt
Autohaus Gawe GmbH, Berlin
Automotive Safety Technologies GmbH, Gaimersheim
AZU Autoteile und -zubehr Vertriebs GmbH, Dreieich
Carmeq GmbH, Berlin
carmobility GmbH, Munich
CC WellCom GmbH, Potsdam
csi Entwicklungstechnik GmbH, Gaimersheim
CSI Entwicklungstechnik GmbH, Munich
csi entwicklungstechnik GmbH, Neckarsulm
csi entwicklungstechnik GmbH, Sindelfingen
csi Verwaltungs GmbH, Neckarsulm
Daraja GrundstcksverwaltungsgeselIschaft mbH & Co. Vermietungs KG, Wiesbaden
Datura Grundstcksverwaltungsgesellschaft mbH & Co. Vermietungs KG, Wiesbaden
Eberhardt Verwaltungsgesellschaft mbH, Ulm
Euromobil Autovermietung GmbH, Isernhagen
FC Ingolstadt 04 Stadionbetreiber GmbH, Ingolstadt
Groupe Volkswagen France Grundstcksgesellschaft mbH, Wolfsburg
Held & Strhle GmbH, Ulm
Italdesign-Giugiaro Deutschland GmbH, Wolfsburg
MAHAG Mnchener Automobil-Handel Haberl GmbH Dresden, Dresden
MAHAG Services GmbH, Munich
MAHAG Verwaltungs GmbH, Munich
MAN Erste Beteiligungs GmbH, Munich
MAN Grundstcksgesellschaft mbH & Co. Gamma KG, Munich
MAN Grundstcksgesellschaft mbH & Co. Objekt Heilbronn KG, Oberhausen
MAN Grundstcksgesellschaft mbH, Oberhausen
MAN IT Services GmbH, Munich
MAN Personal Services GmbH, Dachau
MAN Versicherungsvermittlung GmbH, Munich
Manthey Racing GmbH, Meuspath
MAN-Untersttzungskasse GmbH, Munich
MMI Marketing Management Institut GmbH, Braunschweig
MOLTANDO Vermietungsgesellschaft mbH & Co. Objekt Kassel KG, Dsseldorf
NSU GmbH, Neckarsulm
Ortan Verwaltung GmbH & Co. Objekt Karlsfeld KG, Pullach i. Isartal
Porsche Erste Vermgensverwaltung GmbH, Stuttgart
Porsche Niederlassung Mannheim GmbH, Bietigheim-Bissingen
SEAT Deutschland Niederlassung GmbH, Frankfurt am Main
tcu Turbo Charger GmbH, Augsburg
TKI Automotive GmbH, Gaimersheim
Vehicle Trading International (VTI) GmbH, Braunschweig
Volkswagen Design Center Potsdam GmbH, Potsdam
Volkswagen Dienstleistungsgesellschaft mbH, Wolfsburg
Volkswagen Group Partner Services GmbH, Wolfsburg
Volkswagen Infotainment GmbH, Wolfsburg
Volkswagen Klassik GmbH, Wolfsburg
Volkswagen Motorsport GmbH, Hanover
Volkswagen Procurement Services GmbH, Wolfsburg
Volkswagen Retail Dienstleistungsgesellschaft mbH, Berlin
Volkswagen-Bildungsinstitut GmbH, Zwickau
Rent-X GmbH, Braunschweig
Weser-Ems Vertriebsgesellschaft mbH, Bremen
ZENDA Dienstleistungen GmbH, Wrzburg

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

2. International
ABCIS Aubire SNC, Aubire
ABCIS Clermont SNC, Fitz-James
A-K Projekt plog Kft., Gyr
ALSASAUTO S.A.S., Vtraz-Monthoux
Alsauto S.A.S., Chasseneuil-du-Poitou
Apolo Administradora de Bens S/S Ltda., So Bernardo do Campo
Assivalo Prestao de Servios Auxiliares do Setor de Seguros Ltda., So Paulo
Audi Akademie Hungaria Kft., Gyr
Audi Mxico Real Estate S. de R.L. de C.V., San Jos Chiapa
Audi Real Estate S.L., El Prat de Llobregat
AUTO Heller s.r.o., Ostrava
Auto Services Landi SNC, Plouigneau
Automobiles Villers Services S.A.S., Villers-Cotterts
Automotors Toul S.A.R.L., Laxou
AutoViso Brasil Desenvolvimento de Negcios Ltda., So Bernardo do Campo
AutoVision Lifestyle S.r.l., Verona
AutoVision Magyarorszg Kft., Gyr
AutoVision S.A., Brussels
AutoVision Slovakia, s.r.o., Bratislava
A-Vision - Prestao de Servios Indstria Automvel, unipessoal, Lda., Palmela
A-Vision People, Empresa de trabalho temporrio, unipessoal, Lda., Palmela
Bentley Insurance Services Ltd., Crewe
Bentley Motor Cars, Inc., Boston / MA
Bentley Motor Export Services Ltd., Crewe
Call Services S.A.S., Chasseneuil-du-Poitou
Cariviera S.A.S., Nice
Carrosserie 16 S.A.R.L., Champniers

EUR
EUR
HUF
EUR
EUR
BRL
BRL
HUF
USD
EUR
CZK
EUR
EUR
EUR
BRL
EUR
EUR
EUR
EUR
EUR
EUR
GBP
USD
GBP
EUR
EUR
EUR

315.5400

3.2207
3.2207
315.5400
17.8679
27.7350

3.2207

0.7789
1.2141
0.7789

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

100.00
100.00
100.00
81.25
-

100.00
80.80
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.50
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
49.00
94.00
94.00
100.00
100.00
100.00
100.00
70.30
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
80.80
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.50
100.00
100.00
100.00
100.00
100.00
100.00
100.00
80.00
49.00
94.00
94.00
100.00
100.00
100.00
100.00
70.30
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
81.25
100.00

25
735
1,050
25
22,860
41
793
-6
5,072
5,172
5,681
307
3,737
82
3,100
250
1,244
1,160
626
2,657
950
4,796
-361
0
42
779
308
30
102
391
256
256
20
25
2,251
3,548
2,557
136
25
317
944
987
512
50
782
14
2,433
249
47
6,156
2,763
2,521
200
144
25
3,138
100
259
256
24
7,400
2,748

610
5
-8
-42
11
545
-3
707
579
2,289
555
3,771
-124
2
146
1
8
136
1
-1
156
-13
37
-245
360
17
496
3,386
232

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

-61
12
2,768
1,321
1,562
256,178
7,773
24,546
132
504
-251
63
4,454
-237
1,289
4,102
393
221
45
593
435
179

-74
-1
27
4
82
46,543
-233
95
41
41
-23
-11
875
-36
436
263
-85
378
23
46

Footnote

Year

1) 5)

2014
2013
2014
2014
2014
2014
2014
2014
2014
2013
2014
2013
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2013
2013
2014
2013
2013
2013
2014
2014
2014
2014
2014
2014
2014
2013
2014
2013
2014
2014
2014
2013
2014
2013
2013
2013
2014
2013
2013
2013
2014
2013
2013
2013
2013
2013
2014
2013
2013

1)
1)

1)

1)
1)
1)
5)
1)
1)
1)

16)
16)
1)
3)

1)
1)

1)
1)
1)
1)

1)
16)
1)
1)
1) 5)
1) 5)
1)
1)
1)
1)
6) 13)
1) 5)
1)
1)
1)
1)
5)

7)

4) 6)
7)

6)

5)
5)
5)

2013
2013
2014
2013
2013
2013
2013
2014
2014
2013
2014
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

Centrales Diesel Export S.A.S., Villepinte
Centre Automobile De La Riviera Car S.A.S., Nice
Centro Usato Sangallo S.r.l., in liquidation, Florence
CJ Location S.A.R.L., Longeville-ls-Saint-Avold
Cofia S.A., Paris
Cofical Renk Mancais do Brasil Ltda., Guaramirim
Dalegrid Ltd., Reading
Diffusion Automobile Lilleroise (DAL) S.A.R.L., Hnin-Beaumont
Dispro S.A.S., Poitiers
Ducati Canada, Inc., Saint John / NB
Ducati India Pvt. Ltd., New Delhi
e4t electronics for transportation s.r.o., Prague
ELCA Engineering Company (Pty) Ltd., Vanderbijlpark
ERF (Holdings) plc, Swindon
Etablissements A. Cachera S.A.R.L., Oignies
EVDAK TOV, Kiev
Fifty Two Ltd., Stockport
FM Motors Location S.A.R.L., Villeneuve d'Ascq
Fondazione Ducati, Bologna
Garage du Rond Point S.A.R.L., Courrires
Grand Garage de la route de Dunkerque S.A.S., Gravlines
H. J. Mulliner & Co. Ltd., Crewe
Hangzhou Jieshenghang Automobile Sales and Service Co., Ltd., Hangzhou
INIS International Insurance Service s.r.o., ve zkratce INIS s.r.o., Mlad Boleslav
Instituto para Formacin y Desarrollo Volkswagen, S.C., Puebla
InterRent Biluthyrning AB, Sdertlje
Italdesign Giugiaro Barcelona S.L., Barcelona
Jacob S.A.S., Metz
Jacob Evolution S.A.S., Talange
Jacques Duverney Evian S.A.R.L., Evian-les-Bains
Kever Beheer B.V., Almere
L.A.M. d.o.o., Velika Gorica
LKW Komponenten s.r.o., Bnovce nad Bebravou
Lys-Contrle S.A.R.L., Nieppe
MAN Diesel & Turbo Argentina S.A., Buenos Aires
MAN Diesel & Turbo Bangladesh Ltd., Dhaka
MAN Diesel & Turbo Bulgaria EOOD, Varna
MAN Diesel & Turbo Canarias S.L., Las Palmas
MAN Diesel & Turbo Costa Rica Ltda., San Jos
MAN Diesel & Turbo Engine Services Ltd., Stockport
MAN Diesel & Turbo Fujairah FZC, Fujairah Free Zone
MAN Diesel & Turbo Guatemala Ltda., Guatemala City
MAN Diesel & Turbo Japan Ltd., Kobe
MAN Diesel & Turbo Jordan LLC, Aqaba
MAN Diesel & Turbo Kenya Ltd., Nairobi
MAN Diesel & Turbo Lanka Pvt. Ltd., Colombo
MAN Diesel & Turbo Malaysia Sdn. Bhd., Kuala Lumpur
MAN Diesel & Turbo Mexico, S. de R.L. de C.V., Mexico City
MAN Diesel & Turbo Norge A/S, Oslo
MAN Diesel & Turbo Panama Enterprises Inc., Panama City
MAN Diesel & Turbo Per S.A.C., Lima
MAN Diesel & Turbo Philippines Inc., Manila
MAN Diesel & Turbo Poland Sp. z o.o., Gdansk
MAN Diesel & Turbo Portugal, Unipessoal, Lda., Setbal
MAN Diesel & Turbo Qatar Navigation LLC, Doha
MAN Diesel & Turbo Sngal SARL, Dakar
MAN Diesel & Turbo Shanghai Logistics Co., Ltd., Shanghai
MAN Diesel & Turbo Sverige AB, Gteborg
MAN Diesel Electrical Services Ltd., Essex
MAN Diesel Services Ltd., Stockport
MAN Diesel Shanghai Co., Ltd., Shanghai
MAN Diesel Turbochargers Shanghai Co., Ltd., Shanghai
MAN Financial Services Administrators (S.A.) (Pty) Ltd., Johannesburg
MAN Iran Power Sherkate Sahami Khass, Teheran
MAN Latin America Importacao, Industria e Comrcio de Veculos Ltda., So Paulo
MAN Power Engineering Ltd., Stockport
MAN Properties (Midrand) (Pty) Ltd., Midrand
MAN Properties (Pinetown) (Pty) Ltd., Pinetown
MAN Properties (Pty) Ltd., Johannesburg
MAN Truck and Bus India Pvt. Ltd., Mumbai
MAN Turbo (UK) Ltd., London
MBC Mobile Bridges Corp., Houston / TX
Mieschke Hofmann & Partner Americas Inc., Atlanta / GA
Mieschke Hofmann und Partner (Schweiz) AG, Regensdorf
Dencop A/S, Copenhagen
MHP Consulting Romania S.R.L., Cluj-Napoca
MHP (Shanghai) Management Consultancy Co., Ltd., Shanghai
Mirrlees Blackstone Ltd., Stockport
Mdulos Automotivos do Brasil Ltda., So Jos dos Pinhais
Mondial Diffusion S.A.R.L., Roncq
Simple Way Locaes e Servios Ltda., So Paulo
Multiservices Autos Chtellerault S.A.S., Chtellerault
Nard Technical Center S.r.l., Nard
NIRA Dynamics AB, Linkping
Nouvelle Generation S.A.S., Augny
OOO Automotive Components International RUS, Kaluga
OOO MAN Diesel & Turbo Rus, Moscow
OOO Volkswagen Financial Services RUS, Moscow
Park Ward & Co. Ltd., Crewe
Park Ward Motors Inc., Boston / MA
Paxman Diesels Ltd., Stockport
PCK TOV, Kiev
Porsche Austria GmbH, Salzburg
Porsche BH d.o.o., Sarajevo
Porsche Design Asia Hong Kong Ltd., Hong Kong

Exchange
rate
(1 =)
Currency Dec. 31, 2014
EUR
EUR
EUR
EUR
EUR
BRL
GBP
EUR
EUR
CAD
INR
CZK
ZAR
GBP
EUR
UAH
GBP
EUR
EUR
EUR
EUR
GBP
CNY
CZK
MXN
SEK
EUR
EUR
EUR
EUR
EUR
HRK
EUR
EUR
ARS
BDT
BGN
EUR
CRC
GBP
AED
GTQ
JPY
JOD
KES
LKR
MYR
MXN
NOK
USD
PEN
PHP
PLN
EUR
QAR
XOF
CNY
SEK
GBP
GBP
CNY
CNY
ZAR
IRR
BRL
GBP
ZAR
ZAR
ZAR
INR
GBP
USD
USD
CHF
DKK
RON
CNY
GBP
BRL
EUR
BRL
EUR
EUR
SEK
EUR
RUB
RUB
RUB
GBP
USD
GBP
UAH
EUR
BAM
HKD

3.2207
0.7789

1.4063
76.7190
27.7350
14.0353
0.7789
19.1962
0.7789

0.7789
7.5358
27.7350
17.8679
9.3930

7.6580

10.2725
94.5295
1.9558
656.2300
0.7789
4.4573
9.2212
145.2300
0.8605
110.1300
159.2180
4.2473
17.8679
9.0420
1.2141
3.6334
54.4360
4.2732
4.4192
655.9570
7.5358
9.3930
0.7789
0.7789
7.5358
7.5358
14.0353
32,932.0000
3.2207
0.7789
14.0353
14.0353
14.0353
76.7190
0.7789
1.2141
1.2141
1.2024
7.4453
4.4828
7.5358
0.7789
3.2207
3.2207

9.3930
72.3370
72.3370
72.3370
0.7789
1.2141
0.7789
19.1962
1.9558
9.4170

VW AGs interest
in capital in %
Direct
Indirect
-

100.00
100.00
100.00
100.00
100.00
98.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
60.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
94.66
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Total
100.00
100.00
100.00
100.00
100.00
98.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
60.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.99
100.00
100.00
94.66
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

Equity
in thousands,
local currency
1,450
1,979
46
242
16,815
-186
2,313
0
53,707
20,530
110
43
47
-246
-42
661
0
33,118
29,813
0
5,707
361
2,115
13,270
7,622
81
2,558
785
8,583
313,958
3
19,742
27,601
12,369
1,114
21,525
3,351
32,123
982
20
18,458
2,806
156
2
8,543
4,502
2,847
1,832
324
1
1,167
100
10,855
0
2,659
9,567
282
16
477
3,600
134,695
8
40,165
727,897
0
29,038
36
2
-39,146

Profit/loss
in thousands,
local currency
33
261
9
13
2,038
-3
478
17,788
10
-663
-1
-46
-17
22
27,618
6,282
353
23
641
311
105
1
1,158
-183
275
-167,546
2,900
10,584
49
-15,290
-4,177
4,454
314
1,708
1,239
6,724
289
134
3,605
-379
1,249
0
133
-225
-1,367
-665
9,838
884
-3,670
5,147
-27
-3
28
355
65,950
-1,032
5,876
76,635
-554
0
-186
-12,808

Footnote

2)
7)

5)

6)
7)
5)

5)

5)
6)

5)
7)
7)

6)

5)
6)

6)

6)

5)
5)
5)

5)
5)
5)
5)
5)
5)
5)
5)
5)

5)
4) 6)
5)

7)
5)

5)
5)
5)

Year
2013
2013
2014
2014
2013
2013
2014
2013
2013
2013
2014
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2014
2014
2014
2013
2013
2013
2014
2013
2013
2014
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2014
2013
2013
2014
2013
2013
2013
2014
2013
2014
2014
2014
2013
2014
2014
2013
2013
2013
2013
2013
2014
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014

Name and domicile of company

Porsche Design Great Britain Ltd., London
Porsche Design Group Asia Singapore Pte. Ltd., Singapore
Porsche Design Italia S.r.l., Padua
Porsche Design Netherlands B.V., Roermond
Porsche Design of France S.A.R.L., Serris
Porsche Design Sales (Shanghai) Co., Ltd., Shanghai
Porsche Design Studio North America, Inc., Beverly Hills / CA
Porsche Design Timepieces AG, Solothurn
Porsche Engineering (Shanghai) Co., Ltd., Shanghai
Porsche Group S.R.L., Voluntari
Porsche Immobilien Ukraine TOV, Kiev
Porsche Inter Auto Chile SpA, Santiago de Chile
Porsche Inter Auto Ukraine TOV, Kiev
Porsche Kosova Sh.p.k., Pristina
Porsche Leasing Sh.p.k., Tirana
Porsche Mobility BG EOOD, Sofia
Porsche Mobility Sh.p.k., Tirana
Porsche Movilidad Colombia S.A.S., Bogot
Porsche Pensionskasse AG, Salzburg
Porsche Retail GmbH, Salzburg
Porsche System Engineering Ltd., Zurich
Porsche Volkswagen Servicios Financieros Chile SpA, Santiago de Chile
Porsche Zentrum Zug, Steinhausen AG, Zug
Premium Buc S.A.R.L., Buc
Privas Automobiles SNC, Privas
PT MAN Diesel & Turbo Indonesia, Jakarta
Putt Estates (Pty) Ltd., Upington
Putt Real Estates (Pty) Ltd., Upington
Railway Mine & Plantation Equipment Ltd., London
Renk (UK) Ltd., London
Renk Shanghai Service and Commercial Co., Ltd., Shanghai
Renk Transmisyon Sanayi A.S., Istanbul
Riviera Technic S.A.S., Mougins
Ruston & Hornsby Ltd., Stockport
Ruston Diesels Ltd., Stockport
S.A. Trucks Ltd., Bristol
Saint-Marcellin Automobiles S.A.R.L., Saint-Marcellin
SCA Vision, Chasseneuil-du-Poitou
Scania-MAN Administration ApS, Copenhagen
SCI du Triangle, Chasseneuil-du-Poitou
SCI Expansion 57, Chasseneuil-du-Poitou
SCI Lumire, Chasseneuil-du-Poitou
SEAT Center Arrbida - Automveis, Lda., Setbal
SEAT Saint-Martin S.A.S., Paris
SEAT Sport S.A., Martorell
Sergo Arhkon TOV, Kiev
SNC Grands Garages de Provence Garage Central, Les Angles
SNC Stylauto 79, Niort
SNC Stylauto 86, Poitiers
SNC Sud Berry Auto, Argenton-sur-Creuse
Socit d'Exploitation du Garage Lacoste, S.A.S., Serres-Castet
Socit Immobilire Audi S.A.R.L., Paris
Solovi S.A.S., Saint-Jean-d'Angly
Sonauto Accessoires S.A., Cergy-Pontoise
Suzhou Aobaohang Automobile Sales and Service Co., Ltd., Suzhou
VAREC Ltd., Tokyo
Villers Services Center S.A.S., Paris
Volkswagen Capital Advisory Sdn. Bhd., Kuala Lumpur
Volkswagen Financial Services Schweiz AG, Wallisellen
Volkswagen Financial Services Singapore Ltd., Singapore
Volkswagen Financial Services Taiwan Ltd., Taipei
Volkswagen Financn sluby Maklrska s.r.o., Bratislava
Volkswagen Group Hong Kong Ltd., Hong Kong
Volkswagen Group Insurance and Risk Management Services Ltd., in liquidation,
Milton Keynes
Volkswagen Group Latin America, Inc., Miami / FL
Volkswagen Group Malaysia Sdn. Bhd., Kuala Lumpur
Volkswagen Group Milano S.r.l., in liquidation, Milan
Volkswagen Group Pension Scheme Trustee Ltd., Milton Keynes
Volkswagen Group Saudi Arabia, LLC, Riyadh
Volkswagen Hong Kong Co. Ltd., Hong Kong
Volkswagen Insurance Company Ltd., Dublin
Volkswagen Insurance Service (Great Britain) Ltd., Milton Keynes
Volkswagen Insurance Services, Correduria de Seguros, S.L., Barcelona
Volkswagen International Insurance Agency Co., Ltd., Taipei
Volkswagen Leasing (Beijing) Co., Ltd., Beijing
Volkswagen Leasing (Dalian) Co., Ltd., Dalian
Volkswagen Leasing (Nanjing) Co., Ltd., Nanjing
Volkswagen Leasing (Shanghai) Co., Ltd., Shanghai
Volkswagen Leasing (Suzhou) Co., Ltd., Suzhou
Volkswagen Leasing (Tianjin) Co., Ltd., Tianjin
Volkswagen Leasing (Wuxi) Co., Ltd., Wuxi
Volkswagen Logistics Prestao de Servios de Logstica e Transporte Ltda.,
So Bernardo do Campo
Volkswagen New Mobility Services Consulting (Beijing) Co., Ltd., Beijing
Volkswagen New Mobility Services Investment Co., Ltd., Beijing
Volkswagen Passenger Cars Malaysia Sdn. Bhd., Kuala Lumpur
Volkswagen R & Accessory (China) Ltd., Beijing
Volkswagen Sarajevo d.o.o., Vogosca
Volkswagen Service Sverige AB, Sdertlje
Volkswagen Servicios de Administracin de Personal, S.A. de C.V., Puebla
Volkswagen Servicios, S.A. de C.V., Puebla
Volkswagen Serwis Ubezpieczeniowy Sp. z o.o., Warsaw
VWT Participaes em Outras Sociedades e Prestao de Servios em Geral Ltda.,
So Bernardo do Campo

Exchange
rate
(1 =)
Currency Dec. 31, 2014
GBP
SGD
EUR
EUR
EUR
CNY
USD
CHF
CNY
RON
UAH
CLP
UAH
EUR
ALL
BGN
ALL
COP
EUR
EUR
CHF
CLP
CHF
EUR
EUR
IDR
ZAR
ZAR
GBP
GBP
CNY
TRY
EUR
GBP
GBP
GBP
EUR
EUR
DKK
EUR
EUR
EUR
EUR
EUR
EUR
UAH
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
CNY
JPY
EUR
MYR
CHF
SGD
TWD
EUR
HKD

0.7789
1.6058

7.5358
1.2141
1.2024
7.5358
4.4828
19.1962
736.9900
19.1962
139.9500
1.9558
139.9500
2,899.0000

1.2024
736.9900
1.2024

15,076.1000
14.0353
14.0353
0.7789
0.7789
7.5358
2.8320
0.7789
0.7789
0.7789

7.4453

19.1962

7.5358
145.2300
4.2473
1.2024
1.6058
38.4259
9.4170
0.7789
1.2141
4.2473

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
92.62
100.00
100.00
100.00
100.00
100.00
55.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
92.62
100.00
100.00
100.00
100.00
100.00
55.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

2,178
840
-335
70
-823
3,969
48
-421
39
34,661
-1,112,781
8,230
-73
61,857
4,000
61,304
117,229
2,478
33
5,577
270
16
47,541,000
295,279
3
4,640
2,860
1,784
1
383
1,427
80
428
310
596
234
364
32
137
6
943
17,977
167
333
34,088
268,102
-534
3,422
2,922
409,215
2,502
-2,434

-194
117
60
69
-1,226
-1,918
-521
-24,764
-1,318,015
1,930
29
-8,093
-8,646
-1,082,771
22
-1
61
188
-117
11,163,000
4,343
-3,422
893
76
21
6
19
-158
251
49
-618
77
25
-108
-44
33
147
1
139
-1,712
28,729
-626
60
198
51,805
2,495
-3,434

100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

-1,497
142,328
725
92,752
35,797
33,261
1,554
2,417
19,907
29,419
17,139
-

-70
-62,477
-76
324
640
14
1,479
2,027
16,062
-2,762
-5,727
-

GBP
USD
MYR
EUR
GBP
SAR
HKD
EUR
GBP
EUR
TWD
CNY
CNY
CNY
CNY
CNY
CNY
CNY

38.4259
7.5358
7.5358
7.5358
7.5358
7.5358
7.5358
7.5358

BRL
CNY
CNY
MYR
CNY
BAM
SEK
MXN
MXN
PLN

3.2207
7.5358
7.5358
4.2473
7.5358
1.9558
9.3930
17.8679
17.8679
4.2732

58.00
-

100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
100.00
100.00
100.00
58.00
100.00
100.00
100.00
100.00

11,975
183,190
585
44,355
121,833
37,720
14,883

4,609
-8,813
-78,469
1
1,927
34,895
20,554
14,833

BRL

3.2207

100.00

100.00

7,241

2,751

0.7789
4.5537
9.4170
0.7789

Footnote

4) 6)

4) 6)
6)

6)

6)
6)

3)
6)
5)
5)

5)
5)
5)

7)
7)
7)

6)

2) 5)

2)
5)

6)
6)
15)
15)
6)

15)
15)

Year
2014
2014
2014
2014
2014
2014
2014
2014
2014
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2014
2014
2013
2013
2013
2014
2014
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2014
2014
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

Exchange
rate
(1 =)
Currency Dec. 31, 2014

Wuxi Aobaohang Automobile Sales and Service Co., Ltd., Wuxi

Zhuhai Jiejun Automobile Sales and Service Co., Ltd., Zhuhai

CNY
CNY

III. JOINT VENTURES

A. Equity-accounted companies
1. Germany
IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Berlin
Volkswagen Autoversicherung Holding GmbH, Braunschweig
Volkswagen Autoversicherung AG, Braunschweig

EUR
EUR
EUR

2. International
Cummins-Scania XPI Manufacturing, LLC, Columbus / IN
DFM Master S.A., Luxembourg
DFM N.V., Amersfoort
D'Ieteren Lease S.A., Brussels
DutchLease B.V., Amersfoort
FAW-Volkswagen Automotive Co., Ltd., Changchun
Global Mobility Holding B.V., Amsterdam
Lease+Balans B.V., Amersfoort
LeasePlan Corporation N.V., Almere-Stad
MAN Financial Services B.V., Amersfoort
MAN Financial Services SA (Pty) Ltd., Johannesburg
Midland Beheer B.V., Amersfoort
Oppland Tungbilservice A/S, Fagernes
SAIC-Volkswagen Sales Co., Ltd., Shanghai
Shanghai Volkswagen Powertrain Co., Ltd., Shanghai
Shanghai-Volkswagen Automotive Co., Ltd., Shanghai
Stichting DFM Vehicle Loans Securitisation 2005, Amsterdam
Tynset Diesel A/S, Tynset
VDF Faktoring A.S., Istanbul
VDF Servis ve Ticaret A.S., Istanbul
VDF Sigorta Aracilik Hizmetleri A.S., Istanbul
Volkswagen D'Ieteren Finance S.A., Brussels
Volkswagen Dogus Finansman A.S., Istanbul
Volkswagen FAW Engine (Dalian) Co., Ltd., Dalian
Volkswagen FAW Platform Co., Ltd., Changchun
Volkswagen Leasing B.V., Amersfoort
Volkswagen Mller Bilfinans A/S, Oslo
Volkswagen Pon Financial Services B.V., Amersfoort
Volkswagen Pon Financial Services Real Estate B.V., Amersfoort
Volkswagen Transmission (Shanghai) Co., Ltd., Shanghai

USD
EUR
EUR
EUR
EUR
CNY
EUR
EUR
EUR
EUR
ZAR
EUR
NOK
CNY
CNY
CNY
EUR
NOK
TRY
TRY
TRY
EUR
TRY
CNY
CNY
EUR
NOK
EUR
EUR
CNY

7.5358
7.5358

1.2141

7.5358

14.0353
9.0420
7.5358
7.5358
7.5358
9.0420
2.8320
2.8320
2.8320
2.8320
7.5358
7.5358
9.0420

7.5358

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

100.00
100.00

100.00
100.00

27,622
59,846

-378
-4,354

50.00
-

51.00
100.00

50.00
51.00
100.00

137,661
20,288
20,717

16,283
-25,768
-

20.00
40.00
-

50.00
100.00
100.00
100.00
20.00
50.00
100.00
100.00
50.00
100.00
50.00
30.00
60.00
10.00
50.00
100.00
51.00
99.99
50.00
51.00
60.00
60.00
100.00
51.00
60.00
100.00
60.00

50.00
100.00
100.00
100.00
40.00
50.00
100.00
9)
100.00
50.00
100.00
50.00
30.00
60.00
50.00
50.00
100.00
51.00
99.99
50.00
51.00
60.00
60.00
100.00
51.00
60.00
100.00
60.00

127,649
31
51,105
59,951,984
3,459,369
2,581,555
4,151
3,366,127
3,643,734
39,161,738
4,353
15,533
10,659
22,419
121,932
139,668
4,553,609
949,792
1,012,117
220,884
1,166,768

3,345
7,080
38,609,790
300,010
326,447
893
2,941,103
810,983
23,360,355
1,530
5,002
255
10,213
1,284
48,980
1,515,585
167,100
126,690
21,057
249,269

Footnote

Year
2013
2013

1)

18)
11)
11)
12)
12)
11)
12)
11)
11)

17) 18)

14)

11)
12)
10)
11)

2014
2013
2013

2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2012
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013

B. Companies accounted for at cost

1. Germany
Abgaszentrum der Automobilindustrie GbR, Weissach
AutoVision Zeitarbeit GmbH & Co. OHG, Wolfsburg
Elektronische Fahrwerksysteme GmbH, Ingolstadt
GIF Gewerbe- und Industriepark Bad Friedrichshall GmbH, Bad Friedrichshall
IGE Infrastruktur und Gewerbeimmobilien Entwicklungs GmbH & Co. KG, Ingolstadt
LGI Logistikzentrum im Gterverkehrszentrum Ingolstadt Betreibergesellschaft mbH,
Ingolstadt
Objekt Audi Zentrum Berlin-Charlottenburg Verwaltungsgesellschaft mbH, Berlin
Objektgesellschaft Audi Zentrum Berlin-Charlottenburg mbH & Co. KG, Berlin
PDB-Partnership for Dummy Technology and Biomechanics GbR, Ingolstadt
Quartett mobile GmbH, Munich
VOLKSWAGEN VARTA Microbattery Forschungsgesellschaft mbH & Co. KG, Ellwangen
VOLKSWAGEN VARTA Microbattery Verwaltungsgesellschaft mbH, Ellwangen
Wolfsburg AG, Wolfsburg

EUR
EUR
EUR
EUR
EUR

12.50
-

37.50
40.00
49.00
30.00
100.00

50.00
40.00
49.00
30.00
100.00

-12
10,000
5,114
4,751
3,998

1
-9,794
1,871
603
-2

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

20.00
50.00

50.00
50.00
50.00
40.00
49.00
50.00
50.00
-

50.00
50.00
50.00
60.00
49.00
50.00
50.00
50.00

63,340
71
4,701
41
6,086
32
52,425

1,752
2
462
0
-4,551
2
767

2. International
Amer Assurantien B.V., Amersfoort
Central Elctrica Anhangera S.A., So Paulo
Central Elctrica Monjolinho Ltda., So Paulo
Collect Car B.V., Rotterdam
DFM Verzekeringen B.V., Amersfoort
Gyr-Pr Repltr Kft., Gyr
Lenkrad Invest (Pty) Ltd., Sandton
Material Science Center Qatar QSTP-LLC, Doha
SITECH Dongchang Automotive Seating Technology Co., Ltd., Shanghai
SKO-ENERGO s.r.o., Mlad Boleslav
SKO-ENERGO-FIN s.r.o., Mlad Boleslav
Sturups Bilservice AB, Malm
Trio Bilservice AB, Stockholm-Arlanda
VVS Assuradeuren B.V., Amersfoort
Volkswagen Financial Services South Africa (Pty) Ltd., Sandton
VVS Verzekerings-Service N.V., Amersfoort

EUR
BRL
BRL
EUR
EUR
HUF
ZAR
QAR
CNY
CZK
CZK
SEK
SEK
EUR
ZAR
EUR

25.00
-

100.00
40.00
51.00
50.00
100.00
47.86
51.00
25.00
60.00
67.00
52.50
50.00
33.33
100.00
51.00
60.00

100.00
40.00
51.00
50.00
100.00
47.86
51.00
50.00
60.00
67.00
52.50
50.00
33.33
100.00
51.00
60.00

19,866
15
4,204
1,694,689
14,092
191,887
60,197
1,127,872
304
131
87,622
1,579

4,622
6
1,287
22,089
-4,628
51,983
2,179
322,988
2
-22,378
1,352

IV. ASSOCIATES
A. Equity-accounted associates
1. Germany
Autoport Emden GmbH, Emden
Bertrandt AG, Ehningen
Hrmann Automotive Gustavsburg GmbH, Ginsheim-Gustavsburg
Rheinmetall MAN Military Vehicles GmbH, Munich

EUR
EUR
EUR
EUR

33.33
28.97
40.00
49.00

33.33
28.97
40.00
49.00

95
280,324
22,153
1,294

4
62,343
460
-40,909

2. International
Atlas Power Ltd., Karachi
BITS DATA i Sdertlje AB, Sdertlje
Cummins-Scania High Pressure Injection, LLC, Columbus / IN
JV MAN AUTO - Uzbekistan LLC, Samarkand City
Lax Specialvehicles AB, Lax
ScaValencia, S.A., Valencia
Sinotruk (Hong Kong) Ltd., Hong Kong

PKR
SEK
USD
UZS
SEK
EUR
HKD

33.54
33.00
30.00
49.00
47.50
26.00
25.00

33.54
33.00
30.00
49.00
47.50
26.00
25.00

7,922,887
20,894
3,585
95,966,999
31,426
10,025
20,812,372

2,271,910
70
20,021,395
22,501
790
439,555

3.2207
3.2207

315.5400
14.0353
4.4192
7.5358
27.7350
27.7350
9.3930
9.3930
14.0353

121.9870
9.3930
1.2141
2,939.5800
9.3930
9.4170

20)
4)

20)
7)

11)

11)
6)

11)
10)

3)

3)

2013
2013
2013
2013
2013
2013
2014
2014
2013
2014
2013
2013
2013

2013
2013
2013
2013
2013
2013
2014
2013
2013
2013
2013
2013
2013
2013
2013
2013

2013
2014
2013
2013

2013
2013
2013
2013
2013
2013
2013

Name and domicile of company

Exchange
rate
(1 =)
Currency Dec. 31, 2014

VW AGs interest
in capital in %
Direct
Indirect

Total

Equity
in thousands,
local currency

Profit/loss
in thousands,
local currency

B. Associates accounted for at cost

1. Germany
e.solutions GmbH, Ingolstadt
Fahr- und Sicherheitstraining FuS GmbH, Ingolstadt
Fahrzeugteile Service-Zentrum Mellendorf GmbH, Wedemark
FC Bayern Mnchen AG, Munich
FC Ingolstadt 04 Fussball GmbH, Ingolstadt
GVZ Entwicklungsgesellschaft Wolfsburg mbH, Wolfsburg
MOST Cooperation GbR, Karlsruhe
Theater der Stadt Wolfsburg GmbH, Wolfsburg

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

26.00
25.40

49.00
27.45
23.70
8.33
19.94
30.81
20.00
-

49.00
27.45
49.70
8.33
19.94
30.81
20.00
25.40

8,289
53
-1,633
405,000
3,857
2,680
405
124

3,338
768
269
16,400
1,113
221
2
0

2. International
Frontignan Entretien Rparation et Vente Automobile S.A.R.L., Frontignan
Guyonnet-Duperat Automobile (GDA) S.A.R.L., Ruffec
Libert Automobile Holding S.A.R.L., Artiguelouve
Model Master S.p.A., in liquidation, Moncalieri
Servicios Especiales de Ventas Automotrices, S.A. de C.V., Mexico City
Smart Material Corp., Sarasota / FL
Socit en Participation Brume, Poitiers
TAS Tvornica Automobila Sarajevo d.o.o., in liquidation, Vogosca

EUR
EUR
EUR
EUR
MXN
USD
EUR
BAM

50.00

33.33
34.01
24.90
40.00
25.00
24.90
50.00
-

33.33
34.01
24.90
40.00
25.00
24.90
50.00
50.00

78
416
242
-4,398
67,729
1,028
-27
-22,441

-3
-14
-55
-6,013
3,674
-310
-27
-43

EUR
EUR
EUR
EUR

50.00
30.00
30.00
15.30

50.00
30.00
30.00
15.30

930
1,165
10,226

44
198
-

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

10.00
9.92
-

50.00
24.83
20.00
49.00
22.83
50.00
-

50.00
24.83
10.00
20.00
49.00
22.83
9.92
50.00
-

774
10,382
625
3,067
957,000
14,750
-1,535

45
1,732
-142
-76,108
52
292

19.89
-

27.91
49.00
29.85

27.91
49.00
19.89
29.85

15,593
20,795
758,122,000
31,789

2,013
6,616
67,219,000
3,726

V. OTHER EQUITY INVESTMENTS

1. Germany
August Horch Museum Zwickau GmbH, Zwickau
Coburger Nutzfahrzeuge Service GmbH, in Liquidation, Coburg
FFK Fahrzeugservice Frtsch GmbH Kronach, Kronach
GKH Gemeinschaftskraftwerk Hannover GmbH, Hanover
Grundstcksverwaltungsgesellschaft EURO-Leasing GmbH, Matthias Hinners und Helge
Richter GbR, Sittensen
MTC Marine Training Center Hamburg GmbH, Hamburg
Niederschsische Gesellschaft zur Endablagerung von Sonderabfall mbH, Hanover
Pakt Zukunft Heilbronn-Franken gGmbH, Heilbronn
PosernConnect GmbH, Sittensen
Roland Holding GmbH, Munich
SGL Carbon SE, Wiesbaden
Verwaltungsgesellschaft Wasseralfingen mbH, Aalen
Volkswagen AG Preussen Elektra AG OHG, Wolfsburg
2. International
H.R. Owen Plc., London
Renk U.A.E. LLC, Abu Dhabi
Suzuki Motor Corp., Hamamatsu
TTTech Computertechnik AG, Vienna

GBP
AED
JPY
EUR

17.8679
1.2141
1.9558

0.7789
4.4573
145.2300

1) Profit and loss transfer agreement

2) In liquidation
3) Different fiscal year
4) Short fiscal year
5) Currently not trading
6) Newly established company
7) Newly acquired company
8) Commenced operations in 2014
9) Global Mobility Holding B.V., Amsterdam holds a 100% interest in LeasePlan Corporation N.V., Amsterdam
10) Consolidated financial statements
11) Figures are contained in the consolidated financial statements of the parent company
12) Figures in accordance with IFRSs
13) Profit and loss transfer agreement as from 2014
14) Merger
15) Newly acquired company/newly established company in the previous year
16) Structured entity in accordance with IFRS 10 and IFRS 12
17) Liquidation resolution adopted
18) Structured entity included in Volkswagen Pon Financial Services B.V.s consolidated financial statements in accordance with IFRS 10 and IFRS 12
19) Since Jan. 01, 2015 Volkswagen Konzernlogistik GmbH & Co. OHG, Wolfsburg
20) Joint Operation in accordance with IFRS 11
VOLKSWAGEN AG is the general partner of the following companies:
1. Abgaszentrum der Automobilindustrie GbR, Weissach
2. PDB-Partnership for Dummy Technology and Biomechanics GbR, Ingolstadt
3. Volkswagen AG Preussen Elektra AG OHG, Wolfsburg
4. Volkswagen Logistics GmbH & Co. OHG, Wolfsburg

Footnote

4)
3)
3)

3)

2)

2) 5)

2) 5)
1)

Year

2013
2013
2013
2014
2014
2013
2014
2013

2013
2013
2013
2013
2013
2013
2013
2012

2013
2014
2013
2013
2013
2013
2013
2013
2013
2012
2013
2013
2013

10) 12)
3)

2013
2013
2014
2013

Published by:
Volkswagen Aktiengesellschaft
Finanzpublizitt
Brieffach 1848/2
38436 Wolfsburg
Phone +49 5361 9-0
Fax +49 5361 9-28282
ISSN 558.809.557.20