Basis of consolidation

In addition to Volkswagen AG, the consolidated financial statements comprise all significant companies at which Volkswagen AG is able, directly or indirectly, to govern the financial and operating policies in such a way that they can obtain benefits from the activities of these companies (subsidiaries). The subsidiaries also comprise investment funds and other special purpose entities whose net assets are attributable to the Group under the principle of substance over form. 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 for the presentation of a true and fair view of the net assets, financial position and results of operations as well as the cash flows of the Volkswagen Group are not consolidated. However, they are carried in the consolidated financial statements at the lower of cost or fair value since no active market exists for those companies and fair values cannot be reliably ascertained without undue cost or effort. The aggregate equity of these subsidiaries amounts to 1.1% (previous year: 0.8%) of Group equity. The aggregate profit after tax of these companies amounts to –0.5% (previous year: –0.1%) of the profit after tax of the Volkswagen Group.

Significant companies where Volkswagen AG is able, directly or indirectly, to significantly influence financial and operating policy decisions (associates), or directly or indirectly shares control (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:

The list of all shareholdings can be downloaded from the electronic companies register at www.unternehmensregister.de and from www.volkswagenag.com/ir.

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 exercised the option not to publish annual financial statements:

• Audi Retail GmbH, Ingolstadt
• Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt
• Audi Zentrum Berlin GmbH, Berlin
• Audi Zentrum Hamburg GmbH, Hamburg
• Auto 5000 GmbH, Wolfsburg
• Automobilmanufaktur Dresden GmbH, Dresden
• Autostadt GmbH, Wolfsburg
• AutoVision GmbH, Wolfsburg
• Bugatti Engineering GmbH, Wolfsburg
• quattro GmbH, Neckarsulm
• Volim Volkswagen Immobilien Vermietgesellschaft für VW-/Audi-Händlerbetriebe mbH, Braunschweig
• Volkswagen Automobile Berlin GmbH, Berlin
• Volkswagen Automobile Hamburg GmbH, Hamburg
• Volkswagen Business Services GmbH, Braunschweig
• Volkswagen Financial Services Beteiligungsgesellschaft mbH, Braunschweig
• Volkswagen Gebrauchtfahrzeughandels und Service GmbH, Hanover
• Volkswagen Gewerbegrund GmbH, Wolfsburg
• Volkswagen Individual GmbH, Wolfsburg
• Volkswagen Logistics GmbH & Co. OHG, Wolfsburg
• Volkswagen Original Teile Logistik GmbH & Co. KG, Baunatal
• VOLKSWAGEN Retail GmbH, Wolfsburg
• Volkswagen Sachsen GmbH, Zwickau
• Volkswagen Sachsen Immobilienverwaltungs GmbH, Zwickau
• Volkswagen Zubehör GmbH, Dreieich
• VW Wohnungs GmbH & Co. KG, Wolfsburg