Investments
INVESTMENTS IN ASSOCIATES
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 Bertrandt’s supervisory board or management board. Bertrandt has been included in the Volkswagen Group’s 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.
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. Sinotruk’s 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. Bertrandt’s 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.
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SUMMARIZED FINANCIAL INFORMATION ON MATERIAL ASSOCIATES ON A 100% BASIS: |
||||||||
|
€ million |
Sinotruk1 |
Bertrandt2 | ||||||
|---|---|---|---|---|---|---|---|---|
|
|
|
|
||||||
|
||||||||
|
2014 |
|
|
||||||
|
Equity interest (%) |
25 |
29 |
||||||
|
|
|
|
||||||
|
Noncurrent assets |
1,922 |
616 |
||||||
|
Current assets |
4,112 |
305 |
||||||
|
Noncurrent liabilities |
168 |
168 |
||||||
|
Current liabilities |
3,377 |
161 |
||||||
|
Net assets |
2,490 |
592 |
||||||
|
|
|
|
||||||
|
Sales revenue |
3,886 |
243 |
||||||
|
Post-tax profit or loss from continuing operations |
70 |
−3 |
||||||
|
Post-tax profit or loss from discontinued operations |
– |
– |
||||||
|
Other comprehensive income |
−1 |
– |
||||||
|
Total comprehensive income |
69 |
−3 |
||||||
|
Dividends received |
3 |
– |
||||||
|
2013 |
|
|
||||||
|
Equity interest (%) |
25 |
– |
||||||
|
|
|
|
||||||
|
Noncurrent assets |
2,065 |
– |
||||||
|
Current assets |
3,694 |
– |
||||||
|
Noncurrent liabilities |
605 |
– |
||||||
|
Current liabilities |
2,580 |
– |
||||||
|
Net assets |
2,574 |
– |
||||||
|
|
|
|
||||||
|
Sales revenue |
3,417 |
– |
||||||
|
Post-tax profit or loss from continuing operations |
30 |
– |
||||||
|
Post-tax profit or loss from discontinued operations |
– |
– |
||||||
|
Other comprehensive income |
−2 |
– |
||||||
|
Total comprehensive income |
28 |
– |
||||||
|
Dividends received |
1 |
– |
||||||
| (XLS:) Download |
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RECONCILIATION OF THE FINANCIAL INFORMATION TO THE CARRYING AMOUNT OF THE EQUITY-ACCOUNTED INVESTMENTS: |
||||||
|
€ million |
Sinotruk |
Bertrandt* | ||||
|---|---|---|---|---|---|---|
|
|
|
|
||||
|
||||||
|
2014 |
|
|
||||
|
Net assets at January 1 |
2,574 |
595 |
||||
|
Profit or loss |
70 |
−3 |
||||
|
Other comprehensive income |
−1 |
– |
||||
|
Changes in reserves |
– |
– |
||||
|
Foreign exchange differences |
−136 |
– |
||||
|
Dividends |
−18 |
– |
||||
|
Net assets at December 31 |
2,490 |
592 |
||||
|
Proportionate equity |
622 |
171 |
||||
|
Consolidation/Goodwill/Others |
−313 |
163 |
||||
|
Carrying amount of equity-accounted investments |
309 |
334 |
||||
|
2013 |
|
|
||||
|
Net assets at January 1 |
2,564 |
– |
||||
|
Profit or loss |
30 |
– |
||||
|
Other comprehensive income |
−2 |
– |
||||
|
Changes in reserves |
−1 |
– |
||||
|
Foreign exchange differences |
−8 |
– |
||||
|
Dividends |
−8 |
– |
||||
|
Net assets at December 31 |
2,574 |
– |
||||
|
Proportionate equity |
644 |
– |
||||
|
Consolidation/Goodwill/Others |
−346 |
– |
||||
|
Carrying amount of equity-accounted investments |
298 |
– |
||||
| (XLS:) Download |
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SUMMARIZED FINANCIAL INFORMATION ON INDIVIDUALLY IMMATERIAL ASSOCIATES ON THE BASIS OF THE VOLKSWAGEN GROUP’S PROPORTIONATE INTEREST: |
||||
|
€ million |
2014 |
2013 | ||
|---|---|---|---|---|
|
|
|
|
||
|
Post-tax profit or loss from continuing operations |
4 |
−47 |
||
|
Post-tax profit or loss from discontinued operations |
– |
– |
||
|
Other comprehensive income |
−2 |
−2 |
||
|
Total comprehensive income |
2 |
−49 |
||
|
Carrying amount of equity-accounted investments |
72 |
73 |
||
There were no unrecognized losses relating to investments in associates. Contingent liabilities relating to associates amounted to €3 million (previous year: €4 million).
INTERESTS IN JOINT VENTURES
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 long-term 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 agreement 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 co-investors 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 Group’s risk arising from the above-mentioned short position.
The principal place of business is in Amsterdam, the Netherlands.
| (XLS:) Download |
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SUMMARIZED FINANCIAL INFORMATION ON THE MATERIAL JOINT VENTURES ON A 100% BASIS: |
||||||||||
|
€ million |
FAW-Volkswagen Automotive Company |
Shanghai-Volkswagen Automotive Company* |
Global Mobility Holding |
SAIC-Volkswagen Sales Company | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
||||||
|
||||||||||
|
2014 |
|
|
|
|
||||||
|
Equity interest (%) |
40.0 |
50.0 |
50.0 |
30.0 |
||||||
|
|
|
|
|
|
||||||
|
Noncurrent assets |
6,913 |
6,402 |
11,251 |
450 |
||||||
|
Current assets |
14,066 |
7,013 |
9,305 |
4,099 |
||||||
|
of which: cash, cash equivalents and time deposits |
7,681 |
5,309 |
1,039 |
248 |
||||||
|
Noncurrent liabilities |
1,551 |
1,254 |
8,299 |
2 |
||||||
|
of which: financial liabilities |
– |
– |
7,257 |
– |
||||||
|
Current liabilities |
11,472 |
6,558 |
8,560 |
4,050 |
||||||
|
of which: financial liabilities |
3 |
– |
6,753 |
– |
||||||
|
Net assets |
7,956 |
5,603 |
3,697 |
497 |
||||||
|
|
|
|
|
|
||||||
|
Sales revenue |
42,812 |
23,142 |
7,619 |
26,959 |
||||||
|
Depreciation, amortization and impairment losses |
861 |
764 |
83 |
3 |
||||||
|
Interest income |
84 |
99 |
794 |
– |
||||||
|
Interest expenses |
– |
– |
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 |
||||||
|
2013 |
|
|
|
|
||||||
|
Equity interest (%) |
40.0 |
50.0 |
50.0 |
30.0 |
||||||
|
|
|
|
|
|
||||||
|
Noncurrent assets |
5,226 |
5,025 |
10,813 |
391 |
||||||
|
Current assets |
12,009 |
6,440 |
9,246 |
3,861 |
||||||
|
of which: cash, cash equivalents and time deposits |
6,964 |
5,377 |
1,118 |
169 |
||||||
|
Noncurrent liabilities |
1,613 |
949 |
7,155 |
– |
||||||
|
of which: financial liabilities |
– |
– |
6,188 |
– |
||||||
|
Current liabilities |
9,636 |
6,001 |
9,445 |
3,849 |
||||||
|
of which: financial liabilities |
11 |
– |
7,644 |
– |
||||||
|
Net assets |
5,986 |
4,515 |
3,459 |
403 |
||||||
|
|
|
|
|
|
||||||
|
Sales revenue |
37,500 |
20,897 |
7,422 |
23,882 |
||||||
|
Depreciation, amortization and impairment losses |
820 |
529 |
84 |
2 |
||||||
|
Interest income |
57 |
94 |
859 |
– |
||||||
|
Interest expenses |
– |
– |
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 |
||||||
|
Post-tax profit or loss from discontinued operations |
– |
– |
– |
– |
||||||
|
Other comprehensive income |
−100 |
1 |
−38 |
– |
||||||
|
Total comprehensive income |
3,995 |
2,831 |
259 |
359 |
||||||
|
Dividends received |
1,533 |
1,057 |
50 |
93 |
||||||
| (XLS:) Download |
|
RECONCILIATION OF THE FINANCIAL INFORMATION TO THE CARRYING AMOUNT OF THE EQUITY-ACCOUNTED INVESTMENTS: |
||||||||
|
€ million |
FAW-Volkswagen Automotive Company |
Shanghai-Volkswagen Automotive Company |
Global Mobility Holding |
SAIC-Volkswagen Sales Company | ||||
|---|---|---|---|---|---|---|---|---|
|
|
|
|
|
|
||||
|
2014 |
|
|
|
|
||||
|
Net assets at January 1 |
5,986 |
4,515 |
3,459 |
403 |
||||
|
Profit or loss |
4,714 |
3,376 |
348 |
404 |
||||
|
Other comprehensive income |
– |
−28 |
30 |
– |
||||
|
Changes in share capital |
236 |
– |
– |
– |
||||
|
Changes in reserves |
−236 |
– |
– |
– |
||||
|
Foreign exchange differences |
757 |
396 |
– |
33 |
||||
|
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 |
||||
|
2013 |
|
|
|
|
||||
|
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 |
1 |
−38 |
– |
||||
|
Changes in share capital |
124 |
– |
– |
– |
||||
|
Changes in reserves |
−124 |
– |
– |
– |
||||
|
Foreign exchange differences |
−232 |
−47 |
– |
−4 |
||||
|
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 |
||||
|
Consolidation/Goodwill/Others |
−16 |
−108 |
−13 |
– |
||||
|
Carrying amount of equity-accounted investments |
2,378 |
2,150 |
1,716 |
121 |
||||
| (XLS:) Download |
|
SUMMARIZED FINANCIAL INFORMATION ON INDIVIDUALLY IMMATERIAL JOINT VENTURES ON THE BASIS OF THE VOLKSWAGEN GROUP’S PROPORTIONATE INTEREST: |
||||
|
€ million |
2014 |
2013 | ||
|---|---|---|---|---|
|
|
|
|
||
|
Post-tax profit or loss from continuing operations |
281 |
244 |
||
|
Post-tax profit or loss from discontinued operations |
– |
– |
||
|
Other comprehensive income |
−9 |
0 |
||
|
Total comprehensive income |
273 |
243 |
||
|
Carrying amount of equity-accounted investments |
1,519 |
1,199 |
||
There were no unrecognized losses relating to interests in joint ventures. Contingent liabilities relating to joint ventures amounted to €86 million (previous year: €– million).