Informe VW 2013

J ANUARY S E P T E MB E R 2 0 1 3
Interim Report

1 UPDATED I NFORMATI ON 6 VOLKSWAGEN SHARES 7 MANAGEMENT REPORT 20 BRANDS AND
BUSI NESS FI ELDS
25 I NTERI M FI NANCI AL
STATEMENTS ( CONDENSED)

1 Key Facts
2 Key Events
7 Business Development
15 Results of Operations, Finan-
cial Position and Net Assets
19 Outlook
25 Income Statement
26 Statement of Comprehensive
Income
29 Balance Sheet
30 Statement of Changes in
Equity
32 Cash Flow Statement
33 Notes to the Financial
Statements
52 Review Report

VOLKSWAGEN GROUP

Q3 Q13

Volume Data
1

2013 2012 % 2013 2012 %

Deliveries to customers ('000 units) 2,387 2,303 + 3.6 7,185 6,855 + 4.8
of which: in Germany 278 289 4.1 874 910 4.0
abroad 2,109 2,014 + 4.7 6,311 5,945 + 6.2

Vehicle sales ('000 units) 2,368 2,333 + 1.5 7,241 6,978 + 3.8
of which: in Germany 265 280 5.5 882 924 4.5
abroad 2,103 2,054 + 2.4 6,359 6,054 + 5.0

Production ('000 units) 2,347 2,293 + 2.3 7,232 6,974 + 3.7
of which: in Germany 570 532 + 7.1 1,823 1,765 + 3.3
abroad 1,777 1,761 + 0.9 5,409 5,209 + 3.8

Employees ('000 on Sept. 30, 2013/Dec. 31, 2012) 570.1 549.8 + 3.7
of which: in Germany 257.9 249.5 + 3.4
abroad 312.2 300.3 + 4.0

Q3 Q13

Financial Data (IFRSs), million
2013 2012
2
% 2013 2012
2
%

Sales revenue 46,985 48,848 3.8 145,673 144,226 + 1.0

Operating profit 2,777 2,317 + 19.9 8,557 8,857 3.4

as a percentage of sales revenue 5.9 4.7 5.9 6.1

Profit before tax 2,780 12,866 78.4 9,399 22,957 59.1

Profit after tax 1,909 11,305 83.1 6,702 20,152 66.7
Profit attributable to shareholders of Volkswagen AG 1,856 11,265 83.5 6,714 20,059 66.5

Cash flows from operating activities 5,613 3,453 + 62.5 10,597 5,813 + 82.3

Cash flows from investing activities attributable to
operating activities 3,090 6,611 53.3 8,859 11,551 23.3

Automotive Division
3

EBITDA
4
4,888 4,513 + 8.3 15,003 14,858 + 1.0

Cash flows from operating activities 6,281 5,183 + 21.2 14,713 11,935 + 23.3

Cash flows from investing activities attributable to
operating activities
5
3,063 6,578 53.4 10,264 11,331 9.4

of which: investments in property, plant and
equipment 2,512 2,556 1.7 6,436 5,955 + 8.1

capitalized development costs
6
923 627 + 47.1 2,558 1,682 + 52.0
Net cash flow 3,218 1,395 x 4,449 604 x
Net liquidity at September 30 16,649 9,215 + 80.7

1 Volume data including the unconsolidated Chinese joint ventures. These companies are accounted for using the equity method. All figures shown are rounded, so
minor discrepancies may arise from addition of these amounts. 2012 deliveries updated on the basis of statistical extrapolations.
2 Prior-year figures adjusted to reflect application of IAS 19R.
3 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
4 Operating profit plus net depreciation/amortization and impairment losses/reversals of impairment losses on property, plant and equipment, capitalized
development costs, leasing and rental assets, goodwill and financial assets as reported in the cash flow statement.
5 Excluding acquisition and disposal of equity investments: Q3 3,259 million (3,054 million), Q13 8,624 million (7,408 million).
6 See table on page 37.
Key Figures

1
Key Facts Key Events
UPDATED I NFORMATI ON
Key Facts
> Volkswagen Group increases deliveries to customers by 4.8% year-on-year to 7.2 million
vehicles; continued strong growth in China
> Growth in demand for Group vehicles worldwide outperforms the market as a whole;
share of the passenger car market amounts to 12.7% (12.6%)
> Group sales revenue on a level with the previous year at 145.7 billion (144.2 billion);
market situation in Europe and exchange rates continue to have a negative impact
> Operating profit of 8.6 billion (8.9 billion) in a difficult market environment;
earnings impacted by contingency reserves affecting the areas of Passenger Cars and
Power Engineering
> Earnings before tax of 9.4 billion (23.0 billion); prior-year figure significantly
influenced by measurement effects from the integration of Porsche (12.3 billion)
> Cash flows from operating activities in the Automotive Division rise to 14.7 billion
(11.9 billion); ratio of investments in property, plant and equipment (capex) to
sales revenue is 5.0% (4.6%)
> Net liquidity in the Automotive Division increases to 16.6 billion; capital base
strengthened by successful placement of a mandatory convertible note and
hybrid notes
> Enthusiastic customer reception for new Group models worldwide:
- Volkswagen Passenger Cars launches bold e-mobility offensive at the IAA in
Frankfurt; double world premiere of the e-up! and the e-Golf
- Audi presents the A3 Sportback e-tron with plug-in hybrid drive and the new
A3 Cabriolet
- KODA unveils the Rapid Spaceback
- World premiere of the SEAT Leon ST takes versatility to a new dimension
- Porsche demonstrates its expertise in hybrid technology with the 918 Spyder and the
Panamera S E-Hybrid
- Volkswagen Commercial Vehicles celebrates 25th anniversary of the California
camper

2
MOTOR SHOWS AND EVENTS
The Volkswagen Group presented a wide range of new
models at motor shows and events in the third quarter of
2013.

International Motor Show (IAA) in Frankfurt am Main
The Volkswagen Group launched a bold e-mobility offensive
at the 65th IAA in Frankfurt am Main, Germany, the auto-
motive industrys most important motor show. At the Volks-
wagen Group Night on the evening before the motor show,
Chairman of the Board of Management Prof. Dr. Martin
Winterkorn stressed that the Group enjoys a strong
position thanks to its range of highly efficient and
environmentally friendly diesel, petrol and natural gas
engines, through classic hybrid vehicles and models with
a plug-in hybrid drive, down to purely electric vehicles.
This broad approach to the mobility of the future is a solid
foundation for the Group to become the front-runner in
electric traction as well by 2018. Volkswagen aims to
implement this at series level rather than a niche position.
The Volkswagen Passenger Cars brand presented the
e-up! and the e-Golf in a double world premiere in Frankfurt
the first Group vehicles with purely electric drives to hit
the market, and with pioneering efficiency. The e-up! will
start production by the end of the year. The small four-
door features a 60 kW (82 PS) electric motor, which takes
this efficiency expert using only 11.7 kWh of electricity
per 100 km to a maximum of 130 km/h. The e-up! has a
range of 160 km. Production of the e-Golf will then start in
early 2014. Its 85 kW (115 PS) electric motor can travel
100 km on 12.7 kWh of electricity and has a top speed of
140 km/h. The e-Golf has a range of 190 km per battery
charge. Both zero-emission cars are perfect for everyday
use and are attractively equipped automatic climate
control, radio navigation system, windscreen heating and
LED daytime running lights come as standard, and the e-
Golf is the first Volkswagen with full LED headlights. The
brand also debuted the close-to-production Golf Sportsvan
study, a compact van with sporty looks and high everyday
practicality. Alongside its remarkably spacious, variable
interior, the Sportsvan features state-of-the-art assistance
systems. It is the first Golf to be equipped with a blind spot
sensor with an assistant for exiting parking spaces, which
warns the driver of vehicles in their blind spot while
driving. When reversing out of parking spaces, it detects
traffic approaching from behind the vehicle, which can
be difficult for the driver to see. The Golf Sportsvan will
round off the Golf family from mid-2014. The brand
completed its showing with the world premieres of the new
Golf R the series flagship model with 221 kW (300 PS)
and the Golf Variant TGI BlueMotion featuring an eco-
nomical and environmentally friendly natural gas drive.
The new A3 Cabriolet was the focal point of Audis
showing. The compact four-doors fluid lines and soft top
exude sporty styling and elegance. Its optimized range of
engines, systematic lightweight construction, large number
of assistance systems and versatile Audi connect technology
put the A3 Cabriolet at the top of its class technically. The
revamped A8 featuring innovative Matrix LED headlights
and a wide range of new assistance systems and creature
comforts, as well as the A3 Sportback e-tron with a plug-in
hybrid drive, also captured visitors attention. Another
highlight was the presentation of the brands study and
concept vehicles. Audi celebrated the 30th anniversary of
the original Sport quattro in Frankfurt with the unveiling
of the Sport quattro concept car, a dynamic coup study
which boasts a plug-in hybrid drive and a combined
maximum output of 515 kW (700 PS). The 110 kW electric
motor and twin-turbocharged 412 kW (560 PS) V8 engine
propel the lightweight sports car from 0 to 100 km/h in
just 3.7 seconds. The Audi nanuk quattro concept car, a
crossover study, was developed in close cooperation with
the designers from Italdesign Giugiaro, and marries the
dynamism of a high-performance sports car with Audis
quattro expertise on the street, on the race track and off-
road. The sports car for young and old is powered by a
400 kW (544 PS) V10 TDI engine.
KODA systematically continued its model rollout,
unveiling the Rapid Spaceback at the IAA. The young
compact hatchback expands the Czech brands model
range, slotting in between the Fabia and Octavia. Its
dynamic, fresh design, optional panoramic glass roof,
efficient range of engines and spaciousness unmatched
in the compact class make the Rapid Spaceback ideal for
young people and families. The redesigned Yeti also
celebrated its debut in Frankfurt with a brand new front
and rear in KODAs latest design language. Alongside an
edition designed for urban use, this popular compact SUV
will be available with more rugged styling in the future as
the Yeti Outdoor.
Key Events

3
At SEATs stand, the focus was on the world premiere of the
third member of the Leon family. The Leon ST combines
driving pleasure, comfort and space, taking versatility to a
new dimension. It features ample storage space and the
latest technologies, such as innovative safety systems,
making the new Leon ST the perfect blend of functionality,
dynamic handling, agility and safety.
Bentley captivated motor show visitors with the world
premiere of the Continental GT V8 S. The luxury grand
tourer features sports suspension, dramatic styling and an
updated V8 engine with a distinctive sound, and was
presented as both a coup and a convertible.
Lamborghinis Gallardo LP 570-4 Squadra Corse
brings the thrills of motorsport to the street-legal world.
The youngest and most extreme model in the Gallardo
line-up is fitted with a 419 kW (570 PS) V10 engine. A rear
wing gives the latest incarnation of Lamborghinis most
successful model a greater aerodynamic load.
Porsche demonstrated its expertise in hybrid technology
in Frankfurt with the 918 Spyder and the Panamera S
E-Hybrid. The 918 Spyder made its debut at the motor show
and marks the beginning of a new era in sports car manu-
facturing. Designed as a high-performance hybrid from the
ground up, it marries the performance of a super sports
car with the virtually silent drive of an electric vehicle. Its
combined maximum output of 652 kW (887 PS) catapults
the hybrid from 0 to 100 km/h in 2.8 seconds. The 306 kW
(416 PS) Panamera S E-Hybrid is the first plug-in hybrid in
the luxury class. It uses only 3.1 l per 100 km and has a
range of 36 km in purely electric mode. The hybrid has a
top speed of 270 km/h or 135 km/h in all-electric mode.
The Bugatti Veyron Grand Sport Vitesse Jean Bugatti
is the second vehicle from the luxury brands exclusive
Legends series and is a tribute to the oldest son of founder
Ettore Bugatti. The model is limited to three vehicles and
is made entirely out of pitch-black visible carbon.
Volkswagen Commercial Vehicles showcased the e-
load up! an electrically powered study of the brands
smallest delivery van. Its 60 kW (82 PS) electric motor and
special cargo management system, which allows the interior
to be configured in a variety of ways, make the silent all-
rounder a flexible and environmentally friendly answer to
the question of the future mobility of commercial vehicles
in large cities. The brand also presented the special-
edition Amarok Dark Label, a sporty and elegant version of
the popular pickup featuring black 18-inch alloy wheels,
tinted side and rear windows, and black attachments such
as side windows and bumpers. Volkswagen Commercial
Vehicles completed its showing with the new Caddy
BlueMotion. Its low average fuel consumption of 4.5 l per
100 km sets new standards without compromising on
driving pleasure.

Caravan Salon Dsseldorf
Volkswagen Commercial Vehicles marked the 25th anni-
versary of the California campervan with the unveiling of
the attractive special-edition California Generation at the
Caravan Salon in Dsseldorf. The special edition packs a
long list of features, including 17-inch alloy wheels, dark
tinted windows, leather/Alcantara seats and cruise control.
A deluxe sleeping surface and bicycle rack ensure its
occupants travel in comfort. Volkswagen Commercial
Vehicles presented a rugged cross version of its practical
Caddy Tramper in Dsseldorf. This compact camper
boasts 17-inch alloy wheels, bumpers painted in the same
color as the body, side protection moldings and underrun
protection.

AWARDS
The Volkswagen Group once again received a large number
of prizes and awards in the third quarter of 2013.
Three Audi models were awarded the internationally
recognized red dot award: product design in July 2013.
Top honors the red dot: best of the best went to the
Audi R8. The Audi A3 Sportback and the Audi S3 won red
dots for their high design quality. Volkswagen took three
prizes for its digital communication solutions in the
communication design category. The Volkswagen brands
magazine Das Auto. received a red dot for its website
and the red dot: best of the best for the app version. The
jury also singled out the iPad app version of the 2012
Annual Report, which takes users on an interactive
journey through the world of Volkswagen.
In August, Verkehrsclub Deutschland (VCD) voted for
the most environmentally friendly vehicle. Leading the
VCDs current environmental list is the Volkswagen eco
up! and its sister models the KODA Citigo CNG Green tec
and the SEAT Mii Ecofuel. The natural gas cars were
crowned the overall winners thanks in particular to their
economical fuel consumption, low CO
2
emissions and low
noise levels. Other Volkswagen Group models, including
the Touran TSI EcoFuel, the Golf BlueMotion and the Audi
A3 ultra, also achieved excellent rankings.
Volkswagen was awarded the GreenTec Award in the
Production category in September this year. The jury was
won over by Volkswagens holistic Think Blue. Factory.

4
environmental program, due among other things to the
water-saving measures and energy efficiency at its Emden
plant. The use of geothermal energy and the regulation of
production hall ventilation according to demand were
hailed as positive examples. The Zwickau plant was honored
with the Lean & Green Efficiency Award in the Lean
category. Special praise went to measures to increase
employee awareness of environmental protection and
efficient use of energy.
Four Volkswagen models received the coveted Familien-
auto Award 2013 (2013 family car award) in September.
Readers of the AUTOStraenverkehr and ELTERN
magazines were impressed by the functionality, storage
space and individual solutions offered by the Touran, the
Passat Variant, the Sharan and the Touareg in their
respective price categories.
The Golf TwinDrive was awarded the eCar Award 2013
for the best concept vehicle of the year by the magazines
AUTO BILD and Auto Test. The plug-in hybrid is based
on the new Golf and features a powerful combination of a
charged TSI engine and an electric motor, which can
cover a distance of up to 50 km in all-electric mode. The
market launch is scheduled for 2014.
In September 2013, the members of Automobil-Club
Verkehr (ACV) named a Volkswagen model as the most
environmentally friendly and economical car for the third
year running. This years prestigious ACVmobil environ-
mental award went to the new Golf TDI BlueMotion, which
won over the jury with its outstanding economy, low fuel
consumption and low levels of harmful emissions.
The German Design Council voted Porsche as the
Brand of the Year at the Automotive Brand Contest 2013
the international design competition for automotive
brands. Porsche was recognized for its systematic and
pioneering brand management Porsche vehicles have
embodied the concepts of longevity, enduring value and
quality for decades.

ANNI VERSARI ES
KODA celebrated a special achievement with its partner
Shanghai Volkswagen in July this year: one million KODA
vehicles have been produced in China in only six years.
The brand aims to lift unit sales in its strongest market by
doubling the range of vehicles produced locally to six
models by mid-2014.
KODA recorded another milestone at its main Mlad
Boleslav production facility in July 2013 the production
of the eleven-millionth engine in the history of the
company. The Czech brand is one of the oldest engine
developers and manufacturers in the automotive industry.
Audi notched up a double anniversary in China in July
2013: its partnership with First Automotive Works (FAW)
was launched 25 years ago and Audi delivered its two-
millionth car to a customer in China, a locally produced
Audi A6 L.
In July this year, Volkswagens Pacheco location in
Argentina celebrated the production of its millionth
vehicle since it was opened in November 1995.
The Audi A3 reached a milestone in July 2013, with the
three-millionth vehicle rolling off the production line.
Audi established the premium compact class 17 years ago
with the A3 series, which is now successful in 117 countries.
Volkswagen celebrated two anniversaries in Mexico in
August 2013. The ten-millionth vehicle left the assembly
line at the Puebla plant a Beetle GSR and the eleven-
millionth engine was produced. The Puebla location has
grown into the second largest Volkswagen plant in the
world since opening its doors in 1964.
In September 2013, Volkswagens Hanover plant
celebrated the production of nine million commercial
vehicles since manufacturing started there in March
1956. Volkswagen Commercial Vehicles currently manu-
factures the Multivan/Transporter and the Amarok in
Hanover.
KODA produced the 1.5-millionth second-generation
Fabia in September. The Fabia was launched in 1999 and,
since then, has captivated customers in many markets
around the world. Approximately 3.3 million first- and
second-generation vehicles have been delivered to date,
making the small car the Czech brands best-selling model
after the Octavia.

EXPANSI ON OF PRODUCTI ON CAPACI TY
The Volkswagen Group continued its global growth path
with the opening of a new engine plant in Changchun,
China, in August 2013. The Volkswagen FAW Engine Co. Ltd.
joint venture plant is designed to have an initial annual
capacity of 300,000 engines and is located in the direct
vicinity of the existing vehicle plant. In the future, it will
supply modern, highly-efficient engines for Volkswagen
Passenger Cars and Audi brand models. The new production
facility meets the highest quality and environmental
standards and is a milestone on the road to making Volks-
wagen the most environmentally friendly automobile
company in China.
Also in August 2013, Volkswagen opened its first
production facility in western China a new vehicle plant
in Urumqi in the Xinjiang region. The Group is expecting
purchasing power in western China to rise sharply over
the coming years and is again playing a pioneering role in
the Chinese automotive market with the production
facilities. The Shanghai-Volkswagen joint venture plant
will initially operate as a SKD vehicle assembly facility for
Santana models. The paint shop and body shell production

5
is scheduled to go into operation in 2014 and will have a
capacity of 50,000 vehicles per year.
In September 2013, the Volkswagen Group opened a
new vehicle plant in Foshan in southern China via its joint
venture, FAW-Volkswagen. The state-of-the-art, resource-
friendly production facility in the province of Guangdong
has a capacity of 300,000 vehicles per year in the first
expansion phase; this is expected to double in the medium
term. The plant will produce Volkswagen Passenger Cars
and Audi brand models, and will create 6,500 qualified
jobs in southern China.
The Audi brand is systematically driving forward its
international expansion, announcing in September 2013
its plans to build new production facilities for the A3
saloon and Q3 models in So Jos dos Pinhais, Brazil.
Audi is investing around 150 million in Brazil for this
purpose, laying the foundation for further growth in South
America. In addition, the number of dealerships in Brazil
is expected to double by the end of the decade.

SUCCESSES I N SUSTAI NABI LI TY RANKI NGS
Volkswagen is the most sustainable automobile manufacturer
according to the latest Dow Jones Sustainability Indices
(DJSIs) Review, which is performed every year by
RobecoSAM. The Group is the industry leader in the
worlds most prestigious sustainability rankings and has
been admitted to the DJSI World and the DJSI Europe. Key
to this success, according to the experts from RobecoSAM,
are the Groups efforts to reduce fleet consumption and
CO
2
emissions, as well as its binding commitment to
sustainability goals in its Strategy 2018. Volkswagen was
also awarded full marks in innovation and risk manage-
ment, as well as in labor relations. The DJSIs are an
important benchmark for financial investors on companies
performance in terms of their economic, environmental
and social sustainability.
MAN is also once again represented in the latest DJSIs
both in the DJSI World and the DJSI Europe. It is still the
only German company from the industrial engineering
sector to be represented in the DJSIs, and improved its
overall score as against the previous year, winning
recognition in particular for its activities in the areas of
environmental management, water risk, and occupational
health and safety.
The aim of the Carbon Disclosure Project (CDP), a non-
profit organization based in London, is for companies and
cities to publish their environmental data, such as
greenhouse gas emissions and water consumption. The
Volkswagen Group has been included in the CDP Global
500 Climate Performance Leadership Index and the CDP
Global 500 Climate Disclosure Leadership Index for the
first time based on the results of the current survey.
Volkswagen was awarded an A, the highest rating. This
underlines the exemplary quality of the Groups published
environmental data.
Volkswagen was admitted to the new Global Compact
100 stock index launched by the UN Global Compact,
which recognizes environmentally and socially responsible
corporate governance, as well as financial stability. The
fact that Volkswagen shares are now included in this index
is a further testament to the Groups systematic focus on
economic, environmental and social sustainability.

6
The international equity markets recorded positive growth
in the third quarter of 2013. In the period up to the
beginning of August, the DAX continued the upward trend
that had started at the end of the first half of the year. This
was attributable to the positive signals from the American
labor market and the central banks ongoing expansionary
monetary policy, in addition to better-than-expected eco-
nomic and corporate data. After prices moved sideways in
the course of August, in particular the strained political
situation in Syria caused prices to retreat significantly at
the end of the month. In September, however, the markets
rallied, in part reaching new highs, lifted by expectations
that the loose monetary policy would continue. On
September 19, 2013, the DAX closed at a new record high
of 8,694 points. The markets eased off slightly in the
period up to the end of the reporting period, due among
other things to the budget dispute in the United States.
The DAX closed at 8,594 points on September 30,
2013, up 12.9% on the December 31, 2012 figure. The
EURO STOXX Automobile & Parts closed at 421 points; this
was a 24.5% increase as against the end of 2012.
In the first few weeks of the third quarter, Volkswagen AGs
preferred and ordinary shares recorded above-average
growth at a faster pace than the upward movement of the
equity markets. This growth was due among other things
to the Companys figures for the first half of 2013, which
beat expectations. In line with the market decline, prices
fell at the end of August. Volkswagen share prices were
volatile in the remaining weeks of the reporting period.
Volkswagens preferred shares reached their highest
daily closing price in the reporting period (186.65) on
February 1, 2013. They hit their lowest closing price of
138.50 on April 18, 2013. On September 30, 2013, the
preferred shares closed at 174.25, up 1.2% on the end of
2012. Volkswagen AGs ordinary shares reached their high
for the first three quarters of 2013 on August 14, 2013
(181.55). The shares recorded their low of 132.60 on
April 18, 2013. The preferred shares closed at 167.65 at
the end of the reporting period, 3.0% higher than at the
end of 2012.
Information and explanations on earnings per share
can be found in the notes to the consolidated interim
financial statements. Additional Volkswagen share data,
plus corporate news, reports and presentations can be
downloaded from our website at www.volkswagenag.com/ir.

SHARE PRI CE DEVELOPMENT FROM DECEMBER 2012 TO SEPTEMBER 2013
I ndex based on month- end pr i ces: December 31, 2012 = 100

D J F M A M J J A
100
90
110
130
120
80
Volkswagen ordinary shares
Volkswagen preferred shares
DAX
EURO STOXX
Automobile & Parts
S

Volkswagen Shares

Business Development Results of Operations, Financial Position and Net Assets Outlook
MANAGEMENT REPORT 7
GENERAL ECONOMI C DEVELOPMENT
The gradual recovery of the global economy that has
emerged so far in 2013 was mixed in the different regions.
The economic situation in the industrialized nations
improved slightly despite the continued presence of
structural obstacles. At the same time, most emerging
market economies recorded robust economic growth.
Western Europe showed increasing signs of stabilization.
While the southern European countries continued to see
negative growth rates, sentiment gradually brightened. The
situation began to ease in many northern European nations.
The German economy gained some momentum and
recorded slight growth. In particular, positive consumer
sentiment combined with the stable situation in the labor
market to buoy up the economic recovery.
Economic trends in Central and Eastern Europe were
marked by uneven momentum. Overall, growth in the
countries in this region strengthened, though Russia
lagged significantly behind the prior-year figures.
South Africas economic situation continued to be
impacted by structural deficits and political risks. GDP
growth has been below prior-period levels to date.
The US economy continued its recovery at a moderate
pace. Consumer sentiment boosted the economy, while
unemployment declined further. In Mexico, economic
development was positive, albeit more muted than in
previous years.
Brazil and Argentina again recorded higher rates of
expansion in the reporting period. However, political
uncertainty and very high inflation continued to impact
the situation in Argentina.
China again contributed significantly to global
economic growth, despite a slight mid-year slowdown.
Indias GDP grew relatively slowly, curbed by structural
problems and considerable price increases. In Japan, the
monetary and fiscal policy measures and the devaluation
of the yen led to a revival in the economy.

EXCHANGE RATE MOVEMENTS FROM DECEMBER 2012 TO SEPTEMBER 2013
I ndex based on month- end pr i ces: December 31, 2012 = 100

115
110
105
100
95
90
EUR to USD
EUR to JPY
EUR to GBP
120
J F M A M J J A D S

Business Development

8
TRENDS I N THE PASSENGER CAR MARKETS
Global demand for passenger cars continued to grow in
the period from January to September 2013. Market volume
trends were mixed in the various regions. While new
registrations in Europe declined year-on-year, the markets
as a whole in the North America and Asia-Pacific regions
exceeded the level of the first nine months of 2012 in
some areas significantly so. Demand in South America
remained flat at the prior years high level.
The Western European passenger car market fell to a
historical low in the reporting period due to the continued
strained economic situation, although the third quarter
showed slight signs of stabilization. Of the large markets,
France and Italy continued to record higher than average
declines in the first nine months of 2013, while a scrapping
premium cushioned additional substantial decreases in
Spain. By contrast, in the United Kingdom, ongoing high
demand from private customers was the main driver of
growth in new registrations.
In Germany, the number of passenger car sales in the
year to date fell to the second lowest for a period within the
first nine months of any year since German reunification.
Despite the comparatively good labor market situation and
encouraging consumer sentiment, no positive effect on the
buying behavior of private customers has been observed
so far.
The overall trend in the Central and Eastern European
passenger car market was also negative in the period from
January to September 2013. This was primarily attrib-
utable to the sales decline in Russia, where the economy is
slumping.
Demand in the South African market continued to rise
for the fourth consecutive year. The increase was driven by
attractive incentive programs and low interest rates.
In North America, sales continued to increase in the
period from January to September 2013 compared with
the prior-year period. The recovery continued apace, in
particular in the US market, where demand rose to a six-
year high. This significant upturn was mainly the result of
pent-up replacement demand and affordable financing
offerings from manufacturers. By contrast, the market as a
whole in Canada only recorded below-average growth. The
Mexican automotive market grew rapidly in the reporting
period, although new car sales have not yet recovered to
pre-crisis levels.
The number of new passenger car registrations in
South America in the first nine months of 2013 was flat at
the same level as the prior-year figure. The Brazilian
market continued to be buoyed up by government tax
incentives, but fell short of the record level reached in the
previous year when their effect was much stronger. The
positive trend in Argentinas market volume also
continued in the third quarter of 2013, primarily because
of growing consumer investment in tangible assets.
New passenger car registrations in the Asia-Pacific
region also recorded the highest absolute increase from
January to September 2013. The main growth driver was
the Chinese market, which saw a double-digit percentage
increase. A stronger level of discounting to reduce high
inventories and the launch of new models buoyed up the
strong rise in new car sales. Demand for passenger cars in
India was significantly down year-on-year in the reporting
period, in particular due to the weak economic situation
and increased financing and fuel costs. New car sales in
Japan also declined compared with the first nine months
of 2012. However, the prior-year figure had been lifted by
a scrapping premium; demand stabilized in the third
quarter of 2013 on a level with the comparable prior-year
period.

TRENDS I N THE MARKETS FOR COMMERCI AL VEHI CLES
Global demand for light commercial vehicles increased
modestly in the period from January to September 2013.
The still unresolved debt crisis in the eurozone kept
the business climate and registrations with it at a low
level in Western Europe throughout the first half of the
year. Growth returned to individual markets thanks to a
slight improvement in the economic environment in the
third quarter. However, the Western European market on
the whole recorded a significant decrease in the reporting
period compared with the previous year.
Demand for light commercial vehicles was mixed in
Central and Eastern European markets in the first nine
months of 2013. Most peripheral eurozone markets
including Hungary, Slovakia and Ukraine checked or
even reversed the fall in demand in the final weeks of the
reporting period. Market momentum eased in Russia in
the course of the first nine months of 2013.
The North American market recorded a significant
increase in unit sales from January to September 2013.
The number of new registrations for light commercial
vehicles in South Americas core markets was significantly
above the previous years figure. The Brazilian market in
the third quarter of 2013 was unable to build on the
significant growth recorded in the first half of the year,
despite the continued tax incentives. However, growth did

9
MANAGEMENT REPORT
remain higher than the prior-year figure. High inflation in
Argentina increased investment in tangible assets, which
also benefited commercial vehicle manufacturers.
China is the predominant market for light commercial
vehicles in the Asia-Pacific region. Vehicle sales there
increased after a decline in the first half of the year and
were significantly higher in the reporting period than in
the previous year. In Japan, too, the expansionary economic
policy helped lift the commercial vehicle market. India
recorded a slight increase in demand year-on-year,
despite weaker momentum. Sales in most markets in the
ASEAN region were up significantly year-on-year.
In the first three quarters of 2013, global demand for
mid-sized and heavy trucks with a gross weight of more
than six tonnes was on a level with the previous year.
The decline in new registrations in the Western
European market in the first six months of 2013 started
reversing in the third quarter. The trend in Germany,
Western Europes largest market, was negative initially,
due to the initial uncertainty regarding Euro 6 incentives
in the German toll system as well as to the weak economic
environment.
Vehicle sales were well below those in the comparative
period in 2012 in Central and Eastern Europe and in Russia,
the largest truck market there. The decline was primarily
attributable to the continued unfavorable exchange rates
and the introduction of a recycling fee on imported
vehicles in September of last year. In addition, the lower
commodity prices had a negative effect on Russias state
finances, which the government responded to by cutting
infrastructure projects.
In North America, demand declined year-on-year in
the first nine months of 2013. The negative trend in the USA
was due to cautious investment spending by companies
among other things.
New truck registrations in South America fell below
the prior-year figure between January and September
2013. Vehicle sales in South Americas largest market,
Brazil, were well above the figure for 2012 and recorded
year-on-year growth especially in the second and third
quarters, as the previous year had been dominated by the
introduction of Euro 5 technology. Despite continued lower
domestic growth, the heavy truck segment in particular
recorded a recovery, which was primarily attributable to
more favorable financing conditions and higher trans-
portation demand.
The Asia-Pacific region excluding the Chinese market
recorded a substantial drop in vehicle sales in the reporting
period. The main reason for this was the situation in the
Indian market, where the investment climate was over-
shadowed by high interest rates, rising diesel prices and
the weak Indian rupee. By contrast, demand in China, the
worlds largest truck market, was well above the first nine
months of 2012. The increase is mainly attributable to
pull-forward effects linked to the most recent emissions
standards, higher capital expenditures and an improved
domestic economy.
New bus registrations declined slightly worldwide in
January to September 2013 compared with the prior-year
period.

TRENDS I N THE MARKETS FOR POWER ENGI NEERI NG
The markets for power engineering are subject to differing
regional and economic influences. Consequently, their
business growth trends are generally independent of each
other.
In the area of shipbuilding, competition was still
dominated by overcapacity in the merchant fleet. This
situation was further exacerbated by additional tonnage
appearing in the market. However, orders for merchant
ships increased slightly in the second and third quarters
so that, overall, they were marginally higher in the reporting
period than the previous year. Specialized applications
such as LNG tankers, cruise ships and offshore vessels saw
continuing higher demand. The persistent weakness in
the shipping industry spread from the new construction
business to the after-sales business.
Demand for energy generation remained high with a
strong trend towards higher flexibility and decentralized
availability. However, there are signs that customers are
delaying decisions, which held the number of new orders
placed below the level of the previous year. The turboma-
chinery market was dominated by high long-term demand
for primary materials as well as the encouraging trends in
the oil and gas industry. However, there were still ongoing
economic uncertainties, difficult financing conditions and
tougher competitive pressure. The development of offshore
wind energy remained well short of expectations.

DEMAND FOR FI NANCI AL SERVI CES
Global demand for automotive-related financial services
benefited from continuing strong demand in the period
from January to September 2013. The situation in the new
and used car markets in Europe remained strained; never-
theless, demand increased for automotive-related financial
services. Demand in Germany and North America stabilized
at a high level. The South American markets recorded steady
growth, while parts of the Asia-Pacific region clearly exceeded
the prior-year volume.

10
VOLKSWAGEN GROUP DELI VERI ES
The Volkswagen Group delivered 7,185,037 vehicles to
customers in the period from January to September 2013.
This corresponds to an increase of 4.8% or 329,999 units
compared with the previous year. Delivery figures in all
nine months were higher than in each of the same months
of the previous year. Separate details of deliveries of
passenger cars and commercial vehicles are provided in
the following. Since January 1, 2013, the Volkswagen
Commercial Vehicles brand has been reported under
commercial vehicles together with Scania and MAN. The
prior-year figures were adjusted accordingly.

VOLKSWAGEN GROUP DELI VERI ES FROM
JANUARY 1 TO SEPTEMBER 30*

2013 2012 %

Passenger cars 6,624,336 6,297,528 + 5.2

Commercial vehicles 560,701 557,510 + 0.6

Total 7,185,037 6,855,038 + 4.8

* Deliveries for 2012 have been updated and adjusted to reflect subsequent
statistical trends and the new reporting structure.
PASSENGER CAR DELI VERI ES WORLDWI DE
The Volkswagen Group delivered 6,624,336 passenger
cars worldwide in the first nine months of 2013, beating
the record in the prior-year period. The rise of 5.2% was
ahead of the market as a whole, which increased by 4.1%
in the same period. This enabled us to extend our market
position and gain additional market share. The Volkswagen
Passenger Cars (+3.6%) and Audi (+7.6%) brands recorded
new all-time highs for deliveries in the period from
January to September. Demand for Volkswagen Group
passenger cars grew fastest in the Asia-Pacific region. Our
sales also followed a very encouraging trend in North
America. Since August 1, 2012, the Groups delivery figures
also include Porsche brand vehicles.
The table on the next page provides an overview of
passenger car deliveries to customers by market and of the
respective passenger car market shares in the reporting
period.
Sales trends in the individual markets are as follows.

Deliveries in Europe/Remaining markets
In Western Europe, we sold 2,060,121 units in the
reporting period, 2.0% fewer vehicles than in the com
parable prior-year period. Delivery figures were down
year-on-year in all major markets in this region, apart
from the United Kingdom. However, we outperformed the
market as a whole (4.0%). The up!, Golf, Audi A3, Audi Q5,
SEAT Leon and KODA Octavia saloon were among the
models to see increases. The Groups share of the passenger
car market in Western Europe rose to 24.7% (24.3%).
We delivered 2.7% fewer vehicles to customers in the
German passenger car market than in the previous year.
The market as a whole declined by 6.0% in the same
period. The Beetle, Golf, Tiguan, Audi A3, Audi Q5 and
SEAT Leon models were particularly popular. The Volks-
wagen Group increased its share of the German passenger
car market to 38.6% (37.4%). Six Volkswagen Group
models led the Kraftfahrtbundesamt (KBA German
Federal Motor Transport Authority) registration statistics
in their respective segments: the up!, Polo, Golf, Passat,
Touran and Tiguan. The Golf continues to be the most
popular passenger car in Germany.
We delivered 1.6% fewer vehicles to customers in
Central and Eastern Europe in the first nine months of
this year than in the same period of 2012. We increased
sales in Hungary, Poland and the Czech Republic, while
deliveries declined in Russia. Demand for the Polo Sedan,
Golf, Jetta, Audi A3, Audi Q3, Audi Q5 and SEAT Leon
models developed positively.
The number of deliveries made to Volkswagen Groups
customers in South Africa surpassed the prior-year level
by 9.7%. The Groups share of the South African passenger
car market rose to 24.0% (22.7%).

Deliveries in North America
In the period from January to September 2013, the Volks-
wagen Group sold 7.3% more vehicles in the US market
than in the same period of the previous year. The market
as a whole grew by 8.1%. Demand for the Tiguan, Golf
estate, Passat, Audi A4, Audi A5, Audi Q5, Audi A6 and
Audi Q7 models was encouraging. The Porsche brand 911
and Cayenne models were also very popular. The Jetta was
the Groups bestselling model in North America.
We delivered 9.6% more vehicles in Canada. The
Tiguan, Jetta, Touareg, Audi A5, Audi Q5 and Audi Q7
were among the models to record increases.
In Mexico, we handed over 15.8% more vehicles to
customers in the reporting period than in the previous
year. There was increased demand for the Golf, Jetta,
Passat and Audi A3 models.

11
MANAGEMENT REPORT
Deliveries in South America
In the first nine months of 2013, we delivered 12.7%
fewer vehicles to customers in the highly competitive
South American markets than in the prior-year period.
Our sales declined by 15.8% in the Brazilian market.
However, demand for the Voyage, Tiguan and Audi Q3
models were among those to record positive growth. The
Gol continues to be the market leader. The Volkswagen
Groups market share in the Brazilian passenger car
market was 19.9% (23.0%).
In Argentina, the Volkswagen Group delivered 0.5% more
vehicles than in the same period last year. The Gol, Voyage
and Bora models experienced strong demand, while the
Fox and Audi A3 models recorded year-on-year declines.
The Volkswagen Groups share of the passenger car
market in Argentina decreased to 21.8% (25.0%).

PASSENGER CAR DELI VERI ES TO CUSTOMERS BY MARKET FROM JANUARY 1 TO SEPTEMBER 30
1

DE L I VE RI E S ( UNI TS ) CHANGE
S HAR E OF PAS S ENGE R CAR
MAR KE T ( %)

2013 2012
2
(%) 2013 2012

Europe/Remaining markets 2,788,983 2,796,069 0.3

Western Europe 2,060,121 2,103,096 2.0 24.7 24.3

of which: Germany 774,933 796,233 2.7 38.6 37.4

United Kingdom 361,443 319,599 + 13.1 20.1 19.9

France 181,870 198,457 8.4 13.9 14.1

Italy 133,946 146,751 8.7 13.5 13.4

Spain 133,791 134,041 0.2 24.7 24.3

Central and Eastern Europe 441,745 449,033 1.6 15.7 15.2

of which: Russia 214,535 222,804 3.7 11.3 10.9

Czech Republic 60,038 59,744 + 0.5 49.9 45.4

Poland 55,215 52,551 + 5.1 26.1 25.6

Remaining markets 287,117 243,940 + 17.7

of which: Turkey 88,666 66,290 + 33.8 19.7 17.5

South Africa 80,818 73,655 + 9.7 24.0 22.7

North America
3
657,409 602,571 + 9.1 4.7 4.7

of which: USA 463,186 431,581 + 7.3 3.9 4.0

Mexico 127,845 110,405 + 15.8 17.9 16.6

Canada 66,378 60,585 + 9.6 4.9 4.6

South America 562,405 644,144 12.7 17.2 19.5

of which: Brazil 413,007 490,638 15.8 19.9 23.0

Argentina 120,312 119,733 + 0.5 21.8 25.0

Asia-Pacific 2,615,539 2,254,744 + 16.0 12.8 11.9

of which: China 2,357,228 2,003,282 + 17.7 20.8 20.7

Japan 72,784 60,945 + 19.4 2.1 1.7

India 70,688 85,599 17.4 4.0 4.5

Worldwide 6,624,336 6,297,528 + 5.2 12.7 12.6

Volkswagen Passenger Cars 4,364,607 4,214,362 + 3.6

Audi 1,180,748 1,097,507 + 7.6

KODA 684,946 717,191 4.5

SEAT 266,058 238,136 + 11.7

Bentley 6,516 5,969 + 9.2

Lamborghini 1,688 1,541 + 9.5

Porsche 119,747 22,800 x

Bugatti 26 22 + 18.2

1 Deliveries and market shares for 2012 have been updated to reflect subsequent statistical trends. The Porsche brands deliveries are included as from August 1, 2012.
2 The prior-year figure was adjusted due to the new reporting structure.
3 Overall markets in the USA, Mexico and Canada include passenger cars and light trucks.

12
VOLKSWAGEN GROUP DELI VERI ES BY MONTH
Vehi cl es i n thousands

900
800
700
600
J F M A M J J A S O N D
1,000
500
2013
2012

Deliveries in the Asia-Pacific region
We increased our passenger car sales by 16.0% in the
markets in the Asia-Pacific region in the first nine months
of 2013, outperforming the market as a whole, which rose
by 7.4% in the same period.
We delivered 17.7% more vehicles year-on-year to
customers in the Chinese market, which was again the
main driver of growth in the Asia-Pacific region. The Polo,
Sagitar, Lavida, Passat and CC models recorded the largest
year-on-year increase. Demand for the Porsche Cayenne
was also strong. With a 20.8% (20.7%) market share, we
were able to extend our leadership of the extremely
competitive Chinese passenger car market.
In Japan, we handed over 19.4% more vehicles to
customers in the period from January to September 2013
than in the previous year; the market as a whole declined
by 5.3%. Demand was strong in particular for the Beetle,
Touran, Audi A1, Audi A3 and Audi A4 models.
Sales in India were down 17.4% year-on-year in a
declining market. Demand for the Audi Q3 and Audi Q7
models developed positively.

COMMERCI AL VEHI CLE DELI VERI ES
The Volkswagen Group delivered 560,701 units worldwide in
the first nine months of 2013, a slight increase year-on-year
(+0.6%). The number of trucks sold rose to 136,806
(+3.0%), and deliveries of buses increased to 17,300 units
(+13.0%). Volkswagen Commercial Vehicles sold 406,595
vehicles, on a level with the previous year (0.7%). Scania
increased its deliveries by 19.9% to 56,224 units. MAN
handed over 97,882 vehicles to customers in the reporting
period, 3.4% fewer than in the previous year.
In the Western European market, the Volkswagen
Group brands delivered 247,914 commercial vehicles in
the period from January to September 2013, 6.3% fewer
than a year earlier. Light commercial vehicles accounted
for 200,268 of this figure, and trucks for 45,136. The
decline was mainly due to the initial uncertainty regarding
Euro 6 incentives in the German toll system as well as to
the weak economic environment. The Volkswagen Group
delivered 47,676 commercial vehicles in Central and Eastern
European markets, 6.5% fewer vehicles than the previous
year. Of this total, light commercial vehicles accounted for
28,501 units, and trucks for 18,241 units. Demand was
stronger for the Amarok year-on-year. Deliveries in Russia
declined by 7.4% year-on-year to 20,442 units as a result
of the negative growth in public finances there and the
associated cuts to infrastructure projects, as well as to the
introduction of a recycling fee on imported vehicles in
September of 2012. In the Remaining markets, demand
for Volkswagen Group commercial vehicles fell by 1.5% to
36,826 light commercial vehicles, 13,008 trucks and
1,700 buses.
In the North American market, the Volkswagen Group
delivered 8,385 commercial vehicles (+9.2%), of which
7,053 units were light commercial vehicles and 227 were
trucks.
In South America, the figure for deliveries of the
Groups commercial vehicle brands totaled 182,527 vehicles,
of which 118,798 were light commercial vehicles. Higher

13
MANAGEMENT REPORT
investments in tangible assets in Argentina and tax
incentives in Brazil in particular drove demand for these
vehicles. Growth rates for the Saveiro and Amarok models
were encouraging. Of the total figure, 53,889 units were
trucks (+21.6%), and 9,840 were buses. In Brazil, sales
amounted to a total of 145,736 vehicles (+14.9%). Light
commercial vehicles accounted for 90,122 of this figure,
trucks for 47,075 and buses for 8,539. The rise in truck
sales, particularly in the heavy segment, was attributable
to higher demand for transportation as well as the support
programs of the Brazilian development bank.
In the Asia-Pacific region, Group brands delivered
22,665 commercial vehicles to customers (+5.2%),
15,149 of which were light commercial vehicles and 6,305
of which were trucks.

DELI VERI ES I N THE POWER ENGI NEERI NG SEGMENT
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 Turbo-
machinery, which together generated nearly three-
quarters of the overall revenue volume.

GROUP FI NANCI AL SERVI CES
Demand for the products and services of Volkswagen
Financial Services remained strong during the first nine
months of this year. 3.1 million new financing, leasing,
service and insurance contracts were signed worldwide.
This corresponds to an increase of 11.2% compared with
the prior-year period. The total number of contracts as of
the end of September 2013 was 10.4 million, surpassing
the figure at the prior-year reporting date by 11.0%.
In Europe, 2.1 million new contracts were signed in
the reporting period, an increase of 7.7% on the prior-
year period. At 7.3 million, the total number of contracts
surpassed the previous year by 7.1%. 4.2 million of this
total were customer finance and leasing contracts
(+5.8%).
The total number of contracts in North America grew
to 1.7 million as of September 30, 2013, 17.9% higher than
at the reporting date in the previous year. The customer
finance and leasing area accounted for 1.4 million
contracts (+12.0%). At 547 thousand, the number of new
contracts was up 12.1% on the prior-year period.
The total number of contracts in South America grew
by 20.7% year-on-year to 800 thousand at the end of the
third quarter. These were predominantly attributable to
the customer finance and leasing area. The number of
new contracts rose to 273 thousand (+19.9%).
In the Asia-Pacific region, 214 thousand new contracts
were signed in the reporting period, up 38.8% on the
same period in 2012. At the end of September 2013, the
total number of contracts signed was 574 thousand
(+35.0%), with customer finance and leasing contracts
accounting for 468 thousand of this figure (+38.7%).

COMMERCI AL VEHI CLE DELI VERI ES TO CUSTOMERS BY MARKET FROM JANUARY 1 TO SEPTEMBER 30*

DE L I VE RI E S ( UNI TS ) CHANGE

2013 2012 (%)

Europe/Remaining markets 347,124 367,946 5.7

Western Europe 247,914 264,644 6.3

Central and Eastern Europe 47,676 51,000 6.5

Remaining markets 51,534 52,302 1.5

North America 8,385 7,676 + 9.2

South America 182,527 160,344 + 13.8

of which: Brazil 145,736 126,795 + 14.9

Asia-Pacific 22,665 21,544 + 5.2

of which: China 3,575 3,863 7.5

Worldwide 560,701 557,510 + 0.6

Volkswagen Commercial Vehicles 406,595 409,344 0.7

Scania 56,224 46,879 + 19.9

MAN 97,882 101,287 3.4

* Deliveries for 2012 have been updated and adjusted to reflect subsequent statistical trends and the new reporting structure.

14
GLOBAL I NVENTORY TRENDS
At the end of September 2013, global inventories held by
Group companies and the dealer organization had
increased compared with the end of 2012, but were below
the level as of September 30, 2012.

UNI T SALES, PRODUCTI ON AND EMPLOYEES
The Volkswagen Group sold 7,240,924 vehicles to the
dealer organization worldwide in the period from January
to September 2013, surpassing the prior-year figure by
3.8%. The number of vehicles sold outside Germany rose
by 5.0% year-on-year, buoyed by continuing strong demand
for Group models in the Chinese market. As a result of the
weak market, the proportion of domestic vehicle sales
declined by 4.5% compared with the same period in 2012;
vehicles sold in Germany fell to 12.2% (13.2%) of the
Groups overall sales.
The Volkswagen Group produced 7,232,456 vehicles
worldwide in the reporting period, exceeding the figure
for the same period in the previous year by 3.7%. A total of
1,823,366 models were produced in Germany, up 3.3%
on the previous year; the proportion of vehicles produced
in Germany declined to 25.2% (25.3%).
The Volkswagen Group had 542,498 active employees
on September 30 this year. A further 9,616 employees
were in the passive phase of their partial retirement, and
17,975 young people were in apprenticeships. The Volks-
wagen Group had a total of 570,089 employees worldwide
at the end of the reporting period. This corresponds to an
increase of 3.7% compared with December 31, 2012. This
increase is mainly attributable to the establishment of new
production sites, the expanded production volume and the
initial consolidation of international dealerships belonging
to Porsche Holding Salzburg. A total of 257,898 people
were employed in Germany, 3.4% more than at the end of
2012. The proportion of employees in Germany declined
to 45.2% (45.4%).

OPPORTUNI TY AND RI SK REPORT
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 Spruchverfahrens-
gesetz (SpruchG German Award Proceedings Act) for
judicial review of the appropriateness of the cash settle-
ment 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. It is not unusual for noncontrolling interest
shareholders to initiate such award proceedings. Volks-
wagen AG continues to maintain that the results of the
valuation are correct. The audit firms engaged by the parties
and the court-appointed auditor of the agreement confirmed
the appropriateness of the assessment. It is not currently
possible to predict the exact duration of the proceedings.
There were no other significant changes to the
Volkswagen Groups opportunity and risk position
compared with the information contained in the Risk
Report and Report on Expected Developments chapters of
the 2012 Annual Report.

15
MANAGEMENT REPORT
Since January 1, 2013, we have bundled the light commer-
cial vehicles, trucks and buses, and power engineering
businesses in a new Commercial Vehicles/Power Engi-
neering Business Area within the Automotive Division.
IAS 19R changes the way employee benefits are
accounted for. For the Volkswagen Group, this led to
changes to bonus payments for partial retirement
agreements in particular.
The corresponding prior-year figures in the income
statement, the cash flow statement and the balance sheet
have been adjusted.
Due to the approval by the Annual General Meeting of
MAN SE of the control and profit and loss transfer agree-
ment, a liability in the total amount of 3.1 billion (80.89
per share) was recognized in the balance sheet for the
obligation to acquire the shares held by the remaining free
float shareholders of MAN; equity was reduced accordingly.
Following the opening of the award proceedings for
judicial review of the appropriateness of the cash settle-
ment and cash compensation for the noncontrolling interest
shareholders of MAN SE in connection with the control
and profit and loss transfer agreement, the expected
present value of the minimum statutory interest rate was
also recognized as a liability in the amount of 0.5 billion.

RESULTS OF OPERATI ONS OF THE GROUP
At 145.7 billion (144.2 billion), the Volkswagen Groups
sales revenue in the period from January to September 2013
was 1.0% higher than in the same period of 2012. Although
the decline in volumes excluding the Chinese joint ven-
tures and in particular negative exchange rate effects and
deteriorations in the mix depressed sales revenue year-on-
year, these effects were offset by the initial full-year consoli-
dation of Porsche AG. The Volkswagen Group generated
80.7% (80.1%) of its sales revenue outside of Germany.
At 27.0 billion (27.2 billion), gross profit was on a
level with the previous year. Depreciation charges resulting
from increased capital expenditures, higher research and
development costs, and contingency reserves all had a
negative impact. At 18.6% (18.9%), the gross margin was
lower than in the previous year.
The Volkswagen Group generated an operating profit
of 8.6 billion (8.9 billion) in the reporting period. The
operating return on sales was 5.9% (6.1%).
At 9.4 billion (23.0 billion) in the first nine months of
2013, profit before tax was down on the prior-year period,
when measurement effects in connection with the Porsche
integration (12.3 billion) had a clearly positive impact on
the financial result. Profit after tax consequently declined
by 13.5 billion to 6.7 billion.

RESULTS OF OPERATI ONS I N THE AUTOMOTI VE DI VI SI ON
The Automotive Division generated sales revenue of
129.2 billion (129.6 billion) in the period from January
to September 2013. The impact of declining volumes,
negative exchange rate effects and deteriorations in the
mix was almost fully offset by the consolidation of Porsche.
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 the
Groups sales revenue only by deliveries of vehicles and
vehicle parts. Gross profit in the Automotive Division
declined year-on-year to 23.3 billion (23.9 billion).
While improved product costs and the consolidation of
Porsche had a positive effect, volumes and deteriorations
in exchange rates and the mix weighed on gross profit. We
also recorded higher depreciation charges as a result of
increased capital expenditures and higher research and
development costs, particularly for new drive concepts.
Contingency reserves running into the hundreds of millions
of euros were recognized in the areas of passenger cars
and power engineering. Earnings were impacted by write-
downs relating to purchase price allocations, but to a
lesser extent than in the previous year, as expected.
Distribution and administrative expenses exceeded the
prior-year figure by 4.7% and 10.6% respectively in the
reporting period. The ratio of both distribution and
administrative expenses to sales revenue was also higher
than in the previous year. This was due in particular to the
initial full-year inclusion of the companies consolidated in
2012. At 1.4 billion, other operating income exceeded
the prior-year figure by 1.1 billion, mainly as a result of
currency-related factors.
The Automotive Division generated an operating profit
of 7.2 billion (7.8 billion) in the period from January to
September 2013. The operating return on sales was 5.6%
(6.0%). As our Chinese joint ventures are accounted for
using the equity method, their strong business performance
is not reflected in the operating profit.
The financial result for the reporting period was 0.8
billion (14.1 billion). In the first nine months of the
previous year, the financial result had been positively
affected by the updating of the underlying assumptions
used in the valuation models for measuring the put/call
Results of Operations, Financial Position and Net Assets

16
rights relating to Porsche Holding Stuttgart GmbH and the
remeasurement at the contribution date of the shares in
Porsche AG already held indirectly (12.3 billion). Following
the opening of the award proceedings in connection with
the control and profit and loss transfer agreement with
MAN SE in July of this year, the expected present value of
the minimum statutory interest rate was recognized as
interest expense (0.5 billion). Income from the equity-
accounted Chinese joint ventures included in the consoli-
dated financial statements was up on the high prior-year
figure.

Results of operations in the Passenger Cars Business Area and
Commercial Vehicles/Power Engineering Business Area from
January 1 to September 30

* Adjusted
RESULTS OF OPERATI ONS I N THE FI NANCI AL SERVI CES DI VI SI ON
The Financial Services Division generated sales revenue of
16.5 billion in the reporting period, 1.8 billion more
than in the first nine months of 2012. The increase was
mainly due to growth in business volumes and the initial
full-year consolidation of Porsche Financial Services.
At 3.8 billion, gross profit exceeded the prior-year
figure by 13.2%.
Distribution and administrative expenses increased
year-on-year in the reporting period, while the ratio of
both distribution and administrative expenses to sales
revenue remained constant overall.
At 1.3 billion, operating profit was 20.5% higher
than in 2012.

FI NANCI AL POSITI ON OF THE GROUP
At 18.7 billion, the Volkswagen Groups gross cash flow in
the period from January to September 2013 exceeded the
prior-year figure by 3.5 billion. At 8.1 billion (9.4 billion),
funds tied up in working capital were lower than in the
prior-year period. As a result, cash flows from operating
activities rose sharply to 10.6 billion (5.8 billion).
At 8.9 billion (11.6 billion) in the reporting period, the
Volkswagen Groups investing activities attributable to
operating activities were lower than in the same period of
2012, which had been characterized by the contribution
in full of Porsche and the acquisition of Ducati. Invest-
ments in property, plant and equipment rose year-on-year.
Funds of 6.8 billion (8.7 billion) were invested in
financing activities. Both the mandatory convertible note
issued in June (1.1 billion) and the hybrid notes placed in
August (2.0 billion) increased net liquidity. The prior-
year figure included the cash outflow from the increase in
the stake in MAN SE of approximately 2.1 billion.
Cash and cash equivalents in the Volkswagen Group as
reported in the cash flow statement amounted to 23.6
billion as of September 30, 2013, 6.2 billion higher than
a year earlier.
The Groups negative net liquidity amounted to 80.7
billion, compared with 85.5 billion as of December 31,
2012.

FI NANCI AL POSITI ON I N THE AUTOMOTI VE DI VI SI ON
Gross cash flow in the Automotive Division rose to
14.6 billion (12.2 billion) in the first nine months of 2013.
Funds were released from working capital, generating an
inflow of 0.1 billion, following funds of 0.2 billion tied
up in the previous year. At 14.7 billion, cash flows from
operating activities consequently exceeded the prior-year
figure by 2.8 billion.
At 10.3 billion (11.3 billion) in the reporting period,
investing activities attributable to operating activities were
lower than in the previous year. Investments in property,
plant and equipment rose to 6.4 billion (6.0 billion); the
ratio of investments in property, plant and equipment
(capex) to sales revenue was 5.0% (4.6%). We invested
primarily in our production facilities and in models to be
launched in 2013 and 2014, as well as in the ecological
focus of our model range. At 2.6 billion (1.7 billion),
capitalized development costs were up on the 2012 level.
Volkswagen Bank GmbH sold its 50% indirect interest in
LeasePlan Corporation N.V. to Volkswagen AG for approxi-
mately 1.7 billion as part of internal restructuring
measures designed to strengthen equity in the Financial
Services Division. This reduced liquidity within investing
activities attributable to the Automotive Division. The
integration of Porsche and the acquisition of Ducati
should be taken into account in any comparison with the
previous years figures.
Net cash flow increased sharply to 4.4 billion (0.6
billion) in the first nine months of 2013.
In June 2013, we successfully placed a mandatory
convertible note with an aggregate principal amount of
1.2 billion 1.1 billion of which was classified as a capital
contribution and increased net liquidity via Volkswagen

million
2013 2012*

Passenger Cars Business Area

Sales revenue 103,849 104,400

Gross profit 19,976 20,268

Operating profit 6,835 7,242

Commercial Vehicles/Power
Engineering Business Area

Sales revenue 25,321 25,172

Gross profit 3,296 3,606

Operating profit 390 509

17
MANAGEMENT REPORT
OPERATI NG PROFI T BY QUARTER
Vol kswagen Group i n mi l l i on, pr i or- year fi gures adj usted to refl ect appl i cati on of I AS 19R.

1,500
1,000
500
2,000
Q2 Q3
Q1
Q4
0
2013
2012
2,500
3,000
3,500

International Finance N.V. Like the mandatory convertible
note issued in November 2012, which it supplements, this
has a coupon of 5.50% and matures on November 9, 2015,
though the note terms and conditions provide for early
conversion options.
In August 2013, the Volkswagen Group successfully
placed dual-tranche hybrid notes with an aggregate
principal amount of 2.0 billion via Volkswagen Inter-
national Finance N.V. They consist of a 1.25 billion note

Financial position in the Passenger Cars Business Area and the
Commercial Vehicles/Power Engineering Business Area from
January 1 to September 30

million
2013 2012*


Gross cash flow 12,996 10,584

Change in working capital 495 1,107

Cash flows from operating activities 13,490 11,691

Cash flows from investing activities
attributable to operating activities

9,407 10,315

Net cash flow 4,083 1,376


Gross cash flow 1,576 1,572

Change in working capital 354 1,328

Cash flows from operating activities 1,222 244

Cash flows from investing activities
attributable to operating activities

857 1,016

Net cash flow 365 772

* Adjusted
that carries a coupon of 3.875% and has a first call date
after five years, and a 0.75 billion note that carries a
coupon of 5.125% and has a first call date after ten years.
Both tranches are perpetual and increase equity by the full
amount, net of transaction costs. 2.0 billion of the hybrid
notes were classified as a capital contribution, which
increased net liquidity.
A total dividend of 1.6 billion was paid out to the
shareholders of Volkswagen AG.
At 16.6 billion on September 30, 2013, net liquidity
in the Automotive Division exceeded the 2012 year-end
figure by 6.1 billion.

FI NANCI AL POSITI ON I N THE FI NANCI AL SERVI CES DI VI SI ON
Due mainly to earnings-related factors, gross cash flow in
the Financial Services Division was up 1.1 billion on the
figure for the same period of 2012 to 4.2 billion in the
reporting period. Funds tied up in working capital were
down on the previous year to 8.3 billion (9.2 billion).
The sale of the interest in LeasePlan to Volkswagen AG led
to cash inflows from investing activities attributable to
operating activities of 1.4 billion (previous year: cash
outflows of 0.2 billion).
The Financial Services Divisions negative net liquidity,
which is common in the industry, amounted to 97.4
billion at September 30, 2013, compared with 96.1
billion at December 31, 2012.

CONSOLI DATED BALANCE SHEET STRUCTURE
At 323.4 billion, the Volkswagen Groups total assets at
the end of the reporting period were 4.5% higher than at
December 31, 2012. The equity ratio was 27.2% (26.5%).

18
AUTOMOTI VE DI VI SI ON BALANCE SHEET STRUCTURE
At the reporting date, intangible assets, property, plant
and equipment, and noncurrent assets in the Automotive
Division were on a level overall with December 31, 2012.
Current assets rose by 17.6%. Within this item, inventories
and trade receivables increased by 4.6% and 12.6%,
respectively. Cash and cash equivalents amounted to
23.4 billion (15.5 billion) at September 30, 2013.

Balance sheet structure in the Passenger Cars Business Area and
the Commercial Vehicles/Power Engineering Business Area

million
Sept. 30,
2013
Dec. 31,
2012*


Noncurrent assets 92,204 90,844

Current assets 54,480 42,949

Total assets 146,684 133,794

Equity 58,795 49,154

Noncurrent liabilities 54,598 54,608

Current liabilities 33,291 30,032


Noncurrent assets 27,994 28,807

Current assets 17,592 18,333

Total assets 45,585 47,140

Equity 15,166 19,473

Noncurrent liabilities 13,182 13,994

Current liabilities 17,236 13,673

* Adjusted
Following the approval by the Annual General Meeting of
MAN SE of the control and profit and loss transfer agree-
ment, a liability was recognized for the obligation to acquire
the shares held by the remaining free float shareholders of
MAN in accordance with the cash settlement offer in the
amount of 3.1 billion. This did not affect liquidity. Equity
was reduced accordingly; the noncontrolling interests in
MAN SE were derecognized. The remaining noncontrolling
interests are largely attributable to Scania shareholders.
At 74.0 billion, the Automotive Divisions equity at the
end of September 2013 was 7.8% higher than at Decem-
ber 31, 2012. Effects reducing equity from the derecognition
of the noncontrolling interests in MAN SE, dividend pay-
ments and foreign exchange differences were more than
offset by the growth in earnings, lower actuarial losses
from the measurement of pension provisions, the issuance
of a mandatory convertible note and the hybrid notes, and
positive effects from the measurement of derivatives.
Noncurrent liabilities were almost unchanged compared
with December 31, 2012, at 67.8 billion (68.6 billion).
Following the derecognition of the noncontrolling
interests in MAN, a liability in the amount of 3.1 billion
was recognized under Put options and compensation
rights granted to noncontrolling interest shareholders
for the obligation to acquire the shares held by the
remaining free float shareholders of MAN in accordance
with the cash settlement offer. Following the opening of
the award proceedings in connection with the control and
profit and loss transfer agreement with MAN SE, the
expected present value of the minimum statutory interest
rate was also reported under this item in the amount of
0.5 billion. Overall, current assets were 15.6% higher
than at the end of 2012. In particular, reclassifications
from noncurrent to current liabilities due to shorter
remaining maturities increased 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 Automotive Division recorded total
assets of 192.3 billion as of September 30, 2013, an
increase of 6.3% over year-end 2012.

FI NANCI AL SERVI CES DI VI SI ON BALANCE SHEET STRUCTURE
At 131.1 billion, the Financial Services Divisions total
assets at the end of the reporting period exceeded the
figure as of December 31, 2012 by 2.0%.
Due primarily to higher volumes, there was an
increase in leasing and rental assets and noncurrent
financial services receivables. The sale of the interest in
LeasePlan led to a decline in equity-accounted investments.
Overall, noncurrent assets increased by 2.9% compared
with December 31, 2012, while current assets were on a
level with year-end 2012. As of September 30, 2013, the
Financial Services Division accounted for approximately
40.5% of the Volkswagen Groups assets.
At 13.9 billion, the Financial Services Divisions equity
was 4.2% higher than at December 31, 2012 due to
earnings-related factors. The equity ratio was 10.6%
(10.4%). Noncurrent liabilities declined by 3.4% as against
year-end 2012, while current liabilities rose by 6.1%. This
is attributable in particular to the shorter remaining
maturities of financial liabilities.
Deposits from direct banking business were up on the
2012 year-end figure to 24.7 billion (23.9 billion); of
this figure, 22.7 billion was attributable to Volkswagen
Bank direct.

19 MANAGEMENT REPORT
The global economy only grew slightly in the period from
January to September 2013. We believe that global growth
will continue over the course of the year, although economic
uncertainties remain. The industrialized nations will
probably record only low rates of expansion. We are
expecting the recessionary trend in Southern Europe to
continue throughout the year. The greatest drivers of
global economic growth are likely to be China and the
ASEAN countries.
Global demand for passenger cars rose at a slower
pace in the first nine months of 2013 than in the prior-
year period. Growth in the global market for passenger
cars is also likely to be weaker in full-year 2013 than in
2012. We are forecasting that the overall negative trend in
the Western European market will continue, with the
German market also remaining below its 2012 level. We
believe that growth in Central and Eastern Europe will
decline overall. The Asia-Pacific region is again expected
to record higher-than-average growth rates in 2013. While
we expect to see encouraging development in the North
American market, demand in South America will stagnate.
We anticipate that, in 2013, the overall volume in the
markets for light commercial vehicles, trucks and buses
that are relevant for the Volkswagen Group will remain at
the same level as in 2012.
Demand for mobility-related financial services is likely
to rise further in 2013.
The Volkswagen Groups attractive brand portfolio
covering almost all segments from motorcycles through
subcompact cars to heavy trucks and buses, its steadily
growing presence in all major markets in the world and its
wide range of financial services give us decisive competitive
advantages. Our expertise is unparalleled in the industry
and we offer an extensive range of environmentally
friendly, cutting-edge, high-quality vehicles for all regions
and customer groups. In the remaining months of 2013,
the Volkswagen Groups brands will again launch a large
number of fascinating new models and so help further
expand our strong position in the global markets.
We expect that the Volkswagen Group will outperform
the market as a whole in a challenging environment and
that deliveries to customers will increase year-on-year.
However, we are not completely immune to the intense com-
petition and the impact this has on business. The modular
toolkit system, which is being continuously expanded, will
have an increasingly positive effect on the Groups cost
structure.
We expect the Volkswagen Groups 2013 sales revenue
to exceed the prior-year figure. Given the ongoing uncer-
tainty in the economic environment, the Groups goal for
operating profit is to match the prior-year level in 2013.
This applies equally to the Passenger Cars Business Area,
the Commercial Vehicles/Power Engineering Business
Area which remains affected by high write-downs relating
to purchase price allocation, among other things and the
Financial Services Division.
While we shall see positive effects from our attractive
model range and strong market position, there will also be
increasingly stiff competition in a challenging market
environment. Disciplined cost and investment manage-
ment and the continuous optimization of our processes
remain integral elements of our Strategy 2018.

Outlook
This report contains forward-looking statements on the business development of
the Volkswagen Group. These statements are based on assumptions relating to
the development of the economic and legal environment in individual countries
and economic regions, and in particular for the automotive industry, which we
have made on the basis of the information available to us and which we consider
to be realistic at the time of going to press. The estimates given entail a degree of
risk, and the actual developments may differ from those forecast. Consequently,
any unexpected fall in demand or economic stagnation in our key sales markets,
such as Western Europe (and especially Germany), the USA, Brazil, China, or
Russia will have a corresponding impact on the development of our business.
The same applies in the event of a significant shift in current exchange rates,
mostly against the euro and primarily in US dollars, sterling, Chinese renminbi,
Russian rubles, Swedish kronor, Mexican pesos, Australian dollars and Korean
won. In addition, expected business development may vary if the assessments of
value-enhancing factors and risks presented in the 2012 Annual Report develop in
a way other than we are currently expecting, or additional risks or other factors
emerge that adversely affect the development of our business.

20
SALES REVENUE AND OPERATI NG PROFI T BY BRAND AND
BUSI NESS FI ELD
The Volkswagen Groups sales revenue increased by 1.0%
year-on-year between January and September 2013 to
145.7 billion. Operating profit was 3.4% down on the
prior-year figure, at 8.6 billion.
Vehicle sales by the Volkswagen Passenger Cars brand
in the first three quarters of the year amounted to 3.5 million
units, falling short of the prior-year figure by 3.8%. The
up!, the new Golf and the new Beetle Cabrio continued to
be particularly popular with customers. Negative volume-
related and exchange rate factors led to a 6.0% drop in
sales revenue to 74.2 billion. Operating profit was down
0.8 billion year-on-year, at 2.1 billion. The drop in
volumes, together with upfront investments in new tech-
nologies, had a negative effect on results.
Unit sales by the Audi brand amounted to 1,004 thousand
vehicles in the reporting period, slightly up on the previous
year (1,002 thousand). A further 309 thousand Audi
vehicles were sold by the FAW-Volkswagen Chinese joint
venture, compared with 247 thousand the previous year.
In addition to the popularity of the models in the new A3
family, there was strong demand for the Q3 and Q5 SUV
series. In a market environment which continued to be
challenging, sales revenues (37.0 billion) saw a slight
drop compared with 2012 (1.9%), due primarily to negative
currency movements. Operating profit fell by 10.8% to
3.7 billion as a result of negative mix effects, cost-
intensive upfront investments in new products and new
technologies, as well as the expansion of global production
facilities. The financial key performance indicators for the
Audi brand also include the financial figures for the
Lamborghini and Ducati brands. In the first nine months
of this year, Ducati sold 38,234 motorcycles.
The KODA brand sold 524 thousand vehicles between
January and September this year, 4.9% fewer than in the
previous year. This decline was largely attributable to the
changeover of its most important model, the Octavia, and
the ongoing sales crisis in Europe. The Citigo models and
the new Rapid, which is produced in Europe, enjoyed
increasing popularity. Sales revenue fell by 6.4% to 7.4
billion. At 371 million, operating profit was down 196
million on the previous year. Profits were dampened by
lower sales volumes, deteriorations in the mix and currency
effects, as well as by new product launches.
In the first nine months of this year despite the
continued weakness in the overall Spanish market world-
wide unit sales for the SEAT brand reached 335 thousand
vehicles, up 6.4% on the previous year. This figure includes
the Q3 produced for Audi. The brand was particularly
successful in the German, UK and Spanish markets.
Demand for the new Leon and the new Toledo developed
extremely positively, and the Mii also showed very positive
growth. Sales revenue improved by 4.6% to 5.0 billion.
The operating result of 93 million was comparable with
the previous years figure of 95 million. The positive
effects of the volume increases were offset by costs
incurred for launching the new models on the market.
In the reporting period, the Bentley brand sold 6,573
vehicles, 2.3% fewer than in the previous year. At 1.1
billion, sales revenue exceeded the previous year's figure
by 1.7%. The decline in volume was more than offset by
favorable exchange rates and mix effects, as well as
efficient cost management; consequently, operating profit
increased by 34.0% to 98 million.

VOLKSWAGEN GROUP

Division
AUTOMOTI VE FI NANCI AL SERVI CES

Brand/
Business Field
Volkswagen
Passenger
Cars
Audi KODA SEAT Bentley Porsche Volkswagen
Commercial
Vehicles
Scania MAN Other Dealer and customer
financing
Leasing
Direct bank
Insurance
Fleet business
Mobility offerings

Brands and Business Fields

21 BRANDS AND BUSI NESS FI ELDS
The Porsche brand recorded unit sales of 115 thousand
vehicles and sales revenue of 10.4 billion in the first
three quarters of 2013. Operating profit amounted to 1.9
billion. Demand was particularly high for the Cayenne,
Boxster and 911 models. Porsche has been consolidated
since August 1, 2012.
Vehicle sales by Volkswagen Commercial Vehicles were
down 1.5% in the reporting period, at 325 thousand
vehicles. This decrease was primarily attributable to the
weak European markets. The Amarok was very popular
with customers. Sales revenue of 7.0 billion was achieved,
nearly on a par with the previous years figure (1.0%).
The negative volume effects were more than offset by
positive price effects and lower materials costs. Conse-
quently, operating profit exceeded the prior-year figure by
14.1%, at 342 million.
Between January and September 2013, the Scania
brand sold 56 thousand vehicles, 19.9% more than a year
earlier. The brand was particularly successful in the South
American market. Demand for services continued to develop
steadily. Sales revenue rose by 9.5% to 7.4 billion due to
volume-related factors. Increased pressure on margins
caused operating profit to remain at the prior year at 691
million (688 million).
Sales by the MAN brand in the first nine months of the
year declined by 3.4% year-on-year to 98 thousand vehicles.
Sales revenue decreased by 3.5% to 11.3 billion due to
volume-related factors. The fall in operating profit, down
from 518 million to 47 million, is attributable to lower
volumes and declining revenue from the license business,
and in particular to the recognition of project-specific
contingency reserves in the Power Engineering area.
Between January and September 2013, Volkswagen
Financial Services generated an operating profit of 1.1
billion, an increase of 14.1% on the prior-year figure,
thanks to higher volumes and improved margins.

KEY FI GURES BY BRAND AND BUSI NESS FI ELD FROM JANUARY 1 TO SEPTEMBER 30
1

SAL E S TO

VE HI CL E SAL E S SAL E S R EVE NUE THI R D PARTI E S OPE RATI NG R E S ULT

thousand vehicles/ million
2013 2012 2013 2012 2013 2012 2013 2012
2

Volkswagen Passenger Cars 3,499 3,638 74,233 78,972 53,899 58,793 2,117 2,886

Audi 1,004 1,002 36,965 37,667 25,554 26,033 3,743 4,197

KODA 524 551 7,365 7,868 3,694 4,139 371 567

SEAT 335 315 5,017 4,798 2,211 2,089 93 95

Bentley 7 7 1,069 1,051 691 967 98 73

Porsche
3
115 22 10,419 2,167 9,647 2,025 1,893 387

Volkswagen Commercial
Vehicles 325 330 7,011 7,079 3,525 3,774 342 300

Scania
3
56 47 7,365 6,724 7,365 6,724 691 688

MAN
3
98 101 11,342 11,754 11,253 11,684 47 518

VW China
4
2,294 1,923

Other 1,017 959 29,370 27,176 14,756 15,824 1,777
5
1,651
5

Volkswagen Financial Services 14,258 13,322 13,078 12,173 1,126 987

Volkswagen Group 7,241 6,978 145,673 144,226 145,673 144,226 8,557 8,857

Automotive Division 7,241 6,978 129,171 129,573 130,507 130,807 7,225 7,751

of which: Passenger Cars
Business Area
6
6,761 6,499 103,849 104,400 109,070 109,173 6,835 7,242

Commercial Vehicles/
Power Engineering
Business Area
6
480 479 25,321 25,172 21,437 21,633 390 509

Financial Services Division 16,502 14,653 15,166 13,419 1,333 1,106

1 All figures shown are rounded, so minor discrepancies may arise from addition of these amounts.
3 Including financial services; Porsche as from August 1, 2012.
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 an operating profit (proportionate) of 3,530 million (2,806 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 Volkswagen Commercial Vehicles has been reported within the Automotive Division under commercial vehicles since January 1, 2013; the prior-year figures have
been adjusted.

22
UNI T SALES AND SALES REVENUE BY MARKET
In the first nine months of 2013, the Volkswagen Group
sold 3.1 million vehicles in the Europe/Remaining markets
region, a year-on-year decrease of 1.3% that was due to
trends affecting the market as a whole. At 86.4 billion,
sales revenue was on a level with the prior-year figure of
86.8 billion.
In the North American market, unit sales by the Group
amounted to 661 thousand vehicles and were almost the
same as the prior-year figure (663 thousand). The 11.5%
rise in sales revenue to 20.3 billion is due to positive mix
effects resulting from the initial full-year consolidation of
Porsche.
In the highly competitive South American market, we sold
735 thousand vehicles in the reporting period, 5.6%
fewer than in the same period last year. Sales revenue fell
by 1.9% to 13.2 billion due to volume-related factors.
Sales in the Asia-Pacific region between January and
September 2013 were positive. Including the Chinese
joint ventures, we sold a total of 2.7 million vehicles, up
14.7% on the prior-year period. Currency-related factors
led to sales revenue being slightly below the prior-year
level, at 25.7 billion (25.7 billion). Our Chinese joint
ventures are not included in this figure as they are
accounted for using the equity method.

KEY FI GURES BY MARKET FROM JANUARY 1 TO SEPTEMBER 30
1

VE HI CL E SAL E S SAL E S R EVE NUE

thousand vehicles/ million
2013 2012 2013 2012

Europe/Remaining markets 3,109 3,151 86,431 86,780

North America 661 663 20,330 18,233

South America 735 778 13,233 13,489

Asia-Pacific
2
2,736 2,385 25,678 25,724

Volkswagen Group
2
7,241 6,978 145,673 144,226

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 BRANDS AND BUSI NESS FI ELDS
VOLKSWAGEN FI NANCI AL SERVI CES
Volkswagen Financial Services again contributed to the
Volkswagen Groups strong sales performance in the first
nine months of 2013, thanks to its innovative products
along the automotive value chain.
In Germany, Volkswagen Financial Services AG and its
subsidiaries were rebranded and have been using a new
logo since September 2013. The additional claim reads:
Bank. Leasing. Insurance. Mobility. This makes the entire
range of the portfolio clear to customers and highlights
the advantages of a one-stop-shop service.
In July 2013, Volkswagen Financial Services AG in
Germany introduced a new business area, Ducati Financial
Services, which offers special financing solutions and
insurance brokerage for motorcycles. The business also
includes financing for the 80 or so dealers in Germany. In
September 2013, Ducati Financial Services extended its
sales activities to a third market and launched its products
in the USA the largest market for the premium motorcycle
brand Ducati. Further international expansion is planned.
Partners LichtBlick and Volkswagen Bank GmbH have
been offering carbon-free green electricity from hydro-
electric power stations since the e-up! was launched in
Germany in September 2013. Volkswagens partner
LichtBlick is the largest independent energy utility company
in Germany, and exclusively offers electricity from renew-
able sources.
In partnership with Visa Europe, Volkswagen Bank
GmbH is one of the first banks in Germany to offer a new
way of making contactless payments with a smartphone.
The phone is fitted with a specially developed cover which
stores all the information needed for making payments. It
can then be used for making contactless payments via Visa
payWave, by holding it in front of a card reader. There are
already more than one million Visa payWave locations
across Europe, and the number is growing.
Since the middle of September 2013, Volkswagen
Leasing GmbH and CarePort, the service brand for Volks-
wagen Commercial Vehicles, have been offering a new
order management tool called Volkswagen ConnectedWork,
which was specially developed for trades businesses. The
combination of a web portal and a smartphone app helps
dispatchers to optimize order planning and management
and helps them coordinate their employees effectively.
Volkswagen Bank GmbH took first place for the fourth
time in the AUTOHAUS BankenMonitor 2013 awards in the
Volume Brand category. The bank received particularly
high ratings from dealers for its customer relationship
management, its range of sales financing products and the
quality of its field sales force.
For the fourth year running, Volkswagen Financial
Services AG and the German Nature and Biodiversity
Conservation Union (NABU) sponsored the GRNE FLOTTE
environmental prize for ecologically responsible fleet
managers. The number of particularly environmentally
friendly vehicles in the Volkswagen Leasing GmbH portfolio
has risen to 25% of the total portfolio or 246 thousand
vehicles in the first half of 2013 since the beginning of
this partnership.
In South Korea, Volkswagen Financial Services Korea
and MAN Truck & Bus Korea have been working together
since August 2013. The aim of this partnership is to offer
the full range of financial services products for truck and
bus customers.
On the refinancing side, Volkswagen Financial Services
continued the international expansion of its ABS program
in September of this year. In France, approximately
500 million worth of vehicle loans from approximately
60 thousand financing contracts were successfully secu-
ritized for the first time. The Driver France One transaction
has increased the refinancing of Volkswagen Financial
Services global growth. France is the sixth country after
Brazil, Germany, the United Kingdom, Japan and Spain in
which loan securitizations are offered via the Driver
platform.
In the first nine months of 2013, new financing, leasing,
service and insurance contracts rose by 11.2% year-on-
year to 3.1 million. The total number of contracts as of
September 30, 2013 exceeded the number as of December
31, 2012 by 7.9%. At 6.7 million, the number of contracts
in the Customer Finance/Leasing area was around 6%
higher than the figure as of December 31, 2012, while in
the Service/Insurance area it rose by 11.5% to 3.7 million.
The share of leased or financed vehicles rose to 28.5%
(27.2%) of total Group deliveries worldwide, based on
unchanged eligibility criteria. At the end of the reporting
period, receivables relating to dealer financing were down
6.4% compared with December 31, 2012 due to exchange
rate factors.
As of September 30, 2013, 1.4 million accounts were
managed by Volkswagen Bank direct, a decline of 1.2%
compared with the 2012 year-end. Volkswagen Financial
Services had 10,760 employees at the end of the reporting
period.

24

25 I NTERI M FI NANCI AL STATEMENTS ( CONDENSED)
Income Statement Statement of Comprehensive Income Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes to the Financial Statements Review Report
Income Statement for the Period January 1 to September 30

VOL KSWAGEN GROUP DI VI S I ONS

AUTOMOTI VE
1
F I NANCI AL S ERVI CE S

million
2013 2012
2
2013 2012
2
2013 2012
2

Sales revenue 145,673 144,226 129,171 129,573 16,502 14,653

Cost of sales 118,625 117,015 105,898 105,699 12,727 11,317

Gross profit 27,048 27,210 23,273 23,874 3,775 3,337

Distribution expenses 14,255 13,590 13,497 12,889 758 701

Administrative expenses 4,858 4,351 3,956 3,576 902 774

Other operating income/expense 623 413 1,406 343 783 755

Operating profit 8,557 8,857 7,225 7,751 1,333 1,106

Share of profits and losses of equity-accounted
investments 2,834 13,183 2,774 13,069 60 114

Other financial result 1,992 916 2,004 1,012 12 96

Financial result 842 14,099 769 14,081 72 18

Profit before tax 9,399 22,957 7,994 21,832 1,405 1,124

Income tax expense 2,698 2,804 2,390 2,438 308 367

Profit after tax 6,702 20,152 5,605 19,395 1,097 758

Noncontrolling interests 18 93 35 80 17 13

Profit attributable to Volkswagen AG hybrid capital
investors 5 5

Profit attributable to shareholders of Volkswagen AG 6,714 20,059 5,635 19,315 1,080 744

Basic earnings per ordinary share ()
3
13.82 43.10

Diluted earnings per ordinary share ()
3
13.82 43.10

Basic earnings per preferred share ()
3
13.88 43.16

Diluted earnings per preferred share ()
3
13.88 43.16

3 Explanatory notes on earnings per share are presented in note 4.
Interim Financial Statements (Condensed)

26
Statement of Comprehensive Income
for the Period January 1 to September 30
1

million
2013 2012
2

Profit after tax 6,702 20,152

Actuarial gains/losses

Actuarial gains/losses, before tax 2,256 3,190

Deferred taxes relating to actuarial gains/losses 659 939

Actuarial gains/losses, net of tax 1,597 2,251

Share of other comprehensive income of equity-accounted investments that will not be reclassified to
profit or loss, net of tax 4 95

Items that will not be reclassified to profit or loss 1,593 2,346
Exchange differences on translating foreign operations

Unrealized currency translation gains/losses 1,415 357

Transferred to profit or loss

Exchange differences on translating foreign operations, before tax 1,415 357

Deferred taxes relating to exchange differences on translating foreign operations 0 0

Exchange differences on translating foreign operations, net of tax 1,415 357

Cash flow hedges

Fair value changes recognized in other comprehensive income 1,659 0

Transferred to profit or loss 89 760

Cash flow hedges, before tax 1,570 760

Deferred taxes relating to cash flow hedges 457 211

Cash flow hedges, net of tax 1,113 549

Available-for-sale financial assets

Fair value changes recognized in other comprehensive income 128 58


Available-for-sale financial assets, before tax 155 90

Deferred taxes relating to available-for-sale financial assets 8 13

Available-for-sale financial assets, net of tax 163 104

Share of other comprehensive income of equity-accounted investments that may be reclassified
subsequently to profit or loss, net of tax 82 180

Items that may be reclassified subsequently to profit or loss 546 982

Other comprehensive income, before tax 2,170 2,078

Deferred taxes relating to other comprehensive income 1,124 714

Other comprehensive income, net of tax 1,046 1,364

Total comprehensive income 7,748 18,789

of which attributable to

noncontrolling interests 67 86

Volkswagen AG hybrid capital investors 5

shareholders of Volkswagen AG 7,810 18,703

1 Presentation adjusted to reflect application of IAS 1R.

Income Statement for the Period July 1 to September 30


AUTOMOTI VE
1

million
2013 2012
2
2013 2012
2
2013 2012
2

Sales revenue 46,985 48,848 41,656 43,814 5,329 5,034

Cost of sales 38,331 39,820 34,264 35,949 4,068 3,871

Gross profit 8,654 9,028 7,392 7,864 1,262 1,164

Distribution expenses 4,638 4,667 4,376 4,405 263 261

Administrative expenses 1,591 1,484 1,310 1,249 281 234

Other operating income/expense 353 561 564 269 211 292

Operating profit 2,777 2,317 2,270 1,941 507 376

Share of profits and losses of equity-accounted
investments 993 11,332 984 11,300 9 32

Other financial result 990 783 991 738 0 44

Financial result 3 10,549 7 10,561 9 12

Profit before tax 2,780 12,866 2,264 12,502 516 364

Income tax expense 871 1,561 854 1,346 17 215

Profit after tax 1,909 11,305 1,410 11,156 499 149

Noncontrolling interests 48 40 41 37 7 3

Profit attributable to Volkswagen AG hybrid capital
investors 5 5

Profit attributable to shareholders of Volkswagen AG 1,856 11,265 1,364 11,119 492 147

Basic earnings per ordinary share ()
3
3.79 24.21

Diluted earnings per ordinary share ()
3
3.79 24.21

Basic earnings per preferred share ()
3
3.79 24.21

Diluted earnings per preferred share ()
3
3.79 24.21

3 Explanatory notes on earnings per share are presented in note 4.

28
Statement of Comprehensive Income
for the Period July 1 to September 30
1

million
2013 2012
2

Profit after tax 1,909 11,305

Actuarial gains/losses

Actuarial gains/losses, before tax 560 1,098

Deferred taxes relating to actuarial gains/losses 167 325

Actuarial gains/losses, net of tax 392 773

Share of other comprehensive income of equity-accounted investments that will not be reclassified to
profit or loss, net of tax 0 35

Items that will not be reclassified to profit or loss 393 808
Exchange differences on translating foreign operations

Unrealized currency translation gains/losses 422 123

Transferred to profit or loss

Exchange differences on translating foreign operations, before tax 422 123

Deferred taxes relating to exchange differences on translating foreign operations 0 0

Exchange differences on translating foreign operations, net of tax 422 123

Cash flow hedges

Fair value changes recognized in other comprehensive income 711 1,210


Cash flow hedges, before tax 632 1,570

Deferred taxes relating to cash flow hedges 175 449

Cash flow hedges, net of tax 457 1,121


Fair value changes recognized in other comprehensive income 126 31


Available-for-sale financial assets, before tax 99 86

Deferred taxes relating to available-for-sale financial assets 9 10

Available-for-sale financial assets, net of tax 91 96

Share of other comprehensive income of equity-accounted investments that may be reclassified
subsequently to profit or loss, net of tax 101 203

Items that may be reclassified subsequently to profit or loss 25 1,351

Other comprehensive income, before tax 768 677

Deferred taxes relating to other comprehensive income 351 134

Other comprehensive income, net of tax 417 543


of which attributable to

noncontrolling interests 79 78

Volkswagen AG hybrid capital investors 5

shareholders of Volkswagen AG 2,242 11,770

1 Presentation adjusted to reflect application of IAS 1R.

Balance Sheet as of September 30, 2013 and December 31, 2012


AUTOMOTI VE
1

million
2013 2012
2
2013 2012
2
2013 2012
2

Assets

Noncurrent assets 199,220 196,457 120,197 119,651 79,022 76,805

Intangible assets 58,877 59,112 58,642 58,890 235 222

Property, plant and equipment 40,259 39,424 38,561 38,004 1,698 1,420

Leasing and rental assets 21,582 20,034 2,449 2,667 19,133 17,367

Financial services receivables 51,021 49,785 600 602 51,620 50,387

Noncurrent investments, equity-accounted
investments and other equity investments, other
receivables and financial assets 27,481 28,101 21,145 20,693 6,336 7,409

Current assets 124,178 113,061 72,072 61,282 52,106 51,779

Inventories 29,772 28,674 27,053 25,868 2,719 2,806

Financial services receivables 37,066 36,911 811 911 37,877 37,822

Other receivables and financial assets 23,275 21,555 16,705 15,166 6,570 6,389

Marketable securities 7,666 7,433 5,769 5,697 1,896 1,736

Cash, cash equivalents and time deposits 26,400 18,488 23,355 15,462 3,044 3,026

Total assets 323,398 309,518 192,269 180,934 131,128 128,584

Equity and Liabilities

Equity 87,895 81,995 73,961 68,627 13,934 13,369

Equity attributable to shareholders of Volkswagen AG 83,628 77,682 70,073 64,707 13,555 12,975

Equity attributable to Volkswagen AG hybrid capital
investors 1,981 1,981

Equity attributable to Volkswagen AG shareholders and
hybrid capital investors 85,609 77,682 72,054 64,707 13,555 12,975

Noncontrolling interests
3
2,286 4,313 1,908 3,919 379 394

Noncurrent liabilities 119,362 121,996 67,781 68,603 51,582 53,394

Noncurrent financial liabilities 62,557 63,603 15,810 15,069 46,747 48,534

Provisions for pensions 21,845 23,939 21,557 23,628 288 312

Other noncurrent liabilities 34,961 34,454 30,414 29,907 4,547 4,548

Current liabilities 116,140 105,526 50,527 43,704 65,613 61,822

Put options and compensation rigths granted to
noncontrolling interest shareholders
3
3,630 3,630

Current financial liabilities 58,583 54,060 1,698 2,544 60,281 56,604

Trade payables 18,021 17,268 16,427 15,663 1,594 1,606

Other current liabilities 35,906 34,198 32,168 30,586 3,738 3,612

Total equity and liabilities 323,398 309,518 192,269 180,934 131,128 128,584

1 Including allocation of consolidation adjustments between the Automotive and Financial Services divisions, primarily intragroup loans.
3 Following the approval by the Annual General Meeting of MAN SE of the conclusion of a control and profit and loss transfer agreement on June 6, 2013, the
noncontrolling interests in the equity of MAN SE were derecognized from Group equity as a capital transaction involving a change in ownership interest. At the
same time, a liability was recognized as a separate item of current liabilities in accordance with the cash settlement offer.

30
Statement of Changes in Equity

OTHE R R E S E RVE S

million
Subscribed capital Capital reserves Retained earnings
Currency
translation reserve

Unadjusted balance at Jan. 1, 2012 1,191 9,329 48,898 332

Changes in accounting policy to reflect IAS 19R 172

Adjusted balance at Jan. 1, 2012 1,191 9,329 49,069 332

Profit after tax
1
20,059

Other comprehensive income, net of tax 2,202 312

Total comprehensive income
1
17,858 312

Capital increase 0 1

Dividend payment 1,406

Capital transactions involving a change in ownership
interest
2
741

Other changes 158

Balance at Sept. 30, 2012
1
1,191 9,327 64,622 20

Unadjusted balance at Jan. 1, 2013 1,191 11,509 64,429 539

Changes in accounting policy to reflect IAS 19R 167

Adjusted balance at Jan. 1, 2013 1,191 11,509 64,596 539

Profit after tax 6,714

Other comprehensive income, net of tax 1,543 1,313


Capital increase
3
0 1,149

Dividend payment 1,639

Capital transactions involving a change in ownership
interest
2
1,398 39

Other changes 10

Balance at Sept. 30, 2013 1,191 12,658 69,807 1,813

1 Figures adjusted to reflect application of IAS 19R.
2 The capital transactions involving a change in ownership interest are attributable in the previous year in particular to the increase in the equity interest in MAN SE
and, in the reporting period, to the derecognition of 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.
3 Volkswagen AG recorded an inflow of cash funds amounting to 1,200 million, plus the premium and deferred interest (69 million) and less transaction costs
(14 million), from the mandatory convertible note placed in June 2013. Additionally, there are noncash effects from the deferral of taxes amounting to 49 million.
1,149 million of the total amount is required to be classified as equity instruments granted. The residual amount is classified as debt. Volkswagen AG also
recorded an inflow of cash funds amounting to 2,000 million, less a discount of 18 million and transaction costs (14 million), from the hybrid capital issued in
the course of the fiscal year. Additionally, there are noncash effects from the deferral of taxes amounting to 9 million. The hybrid capital is required to be classified
as equity instruments granted.


Cash flow
hedges
Available-for-sale
financial assets
Equity-
accounted
investments
Equity
attributable to
Volkswagen AG
hybrid capital
investors
Equity
attributable to
Volkswagen AG
shareholders and
hybrid capital
investors

Noncontrolling
interests

Total equity

1,437 176 286 57,539 5,815 63,354

172 3 174
1,437 176 286 57,710 5,817 63,528

20,059 93 20,152
551 104 86 1,357 7 1,364

551 104 86 18,703 86 18,789
1 1
1,406 266 1,672

741 1,359 2,101
148 10 30 20

885 72 52 74,255 4,307 78,562

360 624 59 77,515 4,310 81,825
167 4 171
360 624 59 77,682 4,313 81,995
5 6,719 18 6,702
1,114 163 85 1,096 49 1,046
1,114 163 85 5 7,815 67 7,748
1,976 3,125 3,125
1,639 209 1,848

8 0 1 1,366 1,759 3,125
1 8 9 0
1,466 461 142 1,981 85,609 2,286 87,895

32
Cash Flow Statement for the Period January 1 to September 30


AUTOMOTI VE
1
FI NANCI AL SERVI CES

million
2013 2012
2
2013 2012
2
2013 2012
2

Cash and cash equivalents at beginning of period 17,794 16,495 14,788 12,668 3,005 3,827

Profit before tax 9,399 22,957 7,994 21,832 1,405 1,124

Income taxes paid 2,494 4,182 2,158 3,772 336 410

Depreciation and amortization expense 10,660 9,372 7,778 7,107 2,883 2,265

Change in pension provisions 177 54 169 49 9 5

Other noncash income/expense and
reclassifications
3
985 12,977 789 13,061 196 84

Gross cash flow 18,729 15,224 14,572 12,156 4,157 3,068

Change in working capital 8,132 9,411 141 221 8,273 9,189
Change in inventories 1,764 1,231 1,837 768 73 463
Change in receivables 1,552 1,728 1,089 1,627 463 101
Change in liabilities 2,772 2,399 2,297 1,660 476 739
Change in other provisions 1,161 1,127 990 878 171 249

Change in leasing and rental assets (excluding
depreciation) 4,984 4,172 102 432 4,882 3,739

Change in financial services receivables 3,765 5,807 118 68 3,647 5,874

Cash flows from operating activities 10,597 5,813 14,713 11,935 4,116 6,122

Cash flows from investing activities attributable
to operating activities 8,859 11,551 10,264 11,331 1,405 219

of which: acquisition of property, plant and
equipment 6,630 6,083 6,436 5,955 193 128
capitalized development costs 2,558 1,682 2,558 1,682

acquisition and disposal of equity
investments 85 4,023 1,640 3,923 1,555 100

Net cash flow
4
1,738 5,737 4,449 604 2,711 6,341

Change in investments in securities and loans 2,388 2,103 2,026 13 362 2,090

Cash flows from investing activities 11,247 13,653 12,290 11,344 1,043 2,310

Cash flows from financing activities 6,768 8,736 3,588 458 3,180 8,278

of which: capital transactions with
noncontrolling interests 0 2,101 0 2,101

Capital contributions/capital
redemptions 3,067 2 3,036 679 30 677

Changes in cash and cash equivalents due to
exchange rate changes 272 48 201 60 72 12

Net change in cash and cash equivalents 5,845 943 5,810 1,109 35 166

Cash and cash equivalents at Sept. 30 23,639 17,438 20,598 13,777 3,041 3,661

Securities, loans and time deposits 16,758 13,712 10,162 8,394 6,596 5,318

Gross liquidity 40,397 31,151 30,761 22,172 9,636 8,979

Total third-party borrowings 121,139 116,344 14,111 12,957 107,028 103,387

Net liquidity at Sept. 30 80,743 85,194 16,649 9,215 97,392 94,408
For information purposes: at January 1 85,517 64,875 10,573 16,951 96,090 81,826

2 Figures adjusted to reflect application of IAS 19R.
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 Net cash flow: cash flows from operating activities, net of cash flows from investing activities attributable to operating activities.

Accounting in accordance with International Financial Reporting Standards
(IFRSs)
In accordance with Regulation No. 1606/2002 of the European Parliament and of the Council,
Volkswagen AG prepared its consolidated financial statements for 2012 in compliance with the
International Financial Reporting Standards (IFRSs), as adopted by the European Union. These
Interim Consolidated Financial Statements for the period ended September 30, 2013 were therefore
also prepared in accordance with IAS 34 and are condensed in scope compared with the
consolidated financial statements.
All figures shown are rounded, so minor discrepancies may arise from addition of these
amounts.
In addition to the reportable segments, the Automotive and Financial Services divisions are
presented in the condensed group interim financial report for explanatory purposes alongside
the income statement, balance sheet and cash flow statement for the Volkswagen Group. This
supplemental presentation is not required by IFRSs. Eliminations of intragroup transactions
between the Automotive and Financial Services divisions are allocated to the Automotive
Division.
The accompanying interim consolidated financial statements were reviewed by auditors in
accordance with section 37x(3) of the Wertpapierhandelsgesetz (WpHG German Securities
Trading Act).

Accounting policies
Volkswagen AG has applied all accounting pronouncements adopted by the EU and effective for
periods beginning on or after January 1, 2013. The amendments relate primarily to IAS 1,
Presentation of Financial Statements (IAS 1R) and IAS 19, Employee Benefits (IAS 19R).
IAS 1R revises the way that the reconciliation of comprehensive income for the period is
presented. It requires items of other comprehensive income to be presented separately by items
that will never be reclassified to profit or loss and items that may be reclassified subsequently to
profit or loss if certain conditions are met. In addition, the related tax effects must be allocated
to these two groups of items. Volkswagen AG has modified the statement of comprehensive
income in these interim consolidated financial statements in line with this. The other
amendments to IAS 1 do not affect the presentation of the Volkswagen Groups net assets,
financial position and results of operations.
The statement of changes in equity was also modified in this context. In these interim
consolidated financial statements, the retained earnings are composed of other retained
earnings and actuarial gains and losses. The other items are classified as Other reserves.
IAS 19R changes the way employee benefits are accounted for. This results in the following
changes in particular in Volkswagen AGs interim consolidated financial statements:
> Bonus payments for partial retirement agreements are attributed to the periods of service over
the accumulation period in the block model used in the Volkswagen Group.
> Past service cost for defined benefit obligations is recognized directly in profit or loss.
> The defined benefit obligation and plan assets are discounted using the same discount rate (net
interest approach).
Notes to the Consolidated Financial Statements

34
The following tables present the material effects of applying IAS 19R.

December 31, 2012 January 1, 2012

million
Unadjusted Adjustment Adjusted Unadjusted Adjustment Adjusted

Total assets 309,644 126 309,518 253,769 61 253,708

of which: deferred tax
assets 7,915 79 7,836 6,333 61 6,273

of which: intangible
assets 59,158 46 59,112 22,176 22,176

Total liabilities and
provisions 227,819 296 227,523 190,416 235 190,181

of which: other
provisions, pension
provisions 55,032 296 54,735 46,027 235 45,792

Total equity 81,825 171 81,995 63,354 174 63,528

of which: retained
earnings 64,429 167 64,596 48,898 172 49,069

Nine months ended September 30, 2012

million
Unadjusted Adjustment Adjusted

Profit before tax 22,956 1 22,957

of which: other financial result 937 21 916

Income tax expense 2,801 4 2,804

Profit after tax 20,155 3 20,152

Profit attributable to shareholders of Volkswagen AG 20,062 3 20,059

Basic earnings per ordinary share () 43.10 0.00 43.10

Diluted earnings per ordinary share () 43.10 0.00 43.10

Basic earnings per preferred share () 43.16 0.00 43.16

Diluted earnings per preferred share () 43.16 0.00 43.16

On August 1, 2012, Porsche Automobil Holding SE, Stuttgart (Porsche SE), contributed its
holding company operating business to Volkswagen AG by way of singular succession in the
course of a capital increase with a mixed noncash contribution. Volkswagen accounted for this
transaction in accordance with IFRS 3. Partial retirement obligations were also assumed in this
connection. The changes resulting from the application of IAS 19R must be applied
retrospectively, i.e. as if the new accounting policy had always been applied. For this reason, the
adjustment resulting from application of IAS 19R to the recognition and measurement of the
partial retirement obligations must be charged to goodwill at the acquisition date. This resulted
in the following adjustments as of August 1, 2012: deferred tax assets were reduced by 20 million,
intangible assets were reduced by 46 million and liabilities and provisions were reduced by
66 million.
The other amendments to IAS 19 do not materially affect the presentation of the Volkswagen
Groups net assets, financial position and results of operations in its interim consolidated
financial statements.

35
I NTERI M FI NANCI AL STATEMENTS ( CONDENSED)
IFRS 13 sets out general requirements for measuring fair value in a separate standard.
Volkswagen applies the requirements of IFRS 13 governing fair value measurement. There were
no material effects on the presentation of the net assets, financial position and results of
operations in Volkswagen AGs interim consolidated financial statements.
The other accounting pronouncements required to be applied for the first time in fiscal year
2013 are insignificant for the presentation of the Volkswagen Groups net assets, financial
position and results of operations in its interim consolidated financial statements. A detailed
breakdown of these accounting pronouncements is provided in the notes to the consolidated
financial statements in the 2012 Annual Report.
A discount rate of 3.7% (December 31, 2012: 3.2%) was applied to German pension provisions
in the accompanying interim consolidated financial statements. The increase in the discount
rate reduced the actuarial losses for pension provisions that are recognized in retained
earnings.
The income tax expense for the interim reporting period was calculated on the basis of the
average annual tax rate that is expected for the entire fiscal year, in accordance with IAS 34,
Interim Financial Reporting.
In other respects, the same accounting policies and consolidation methods that were used
for the 2012 consolidated financial statements are generally applied to the preparation of the
interim consolidated financial statements and the measurement of the prior-year comparatives.
A detailed description of the methods applied is published in the notes to the consolidated
financial statements in the 2012 Annual Report. This can also be accessed on the Internet at
www.volkswagenag.com/ir.

Basis of consolidation
In addition to Volkswagen AG, which is domiciled in Wolfsburg and entered in the commercial
register at the Braunschweig Local Court under no. HRB 100484, 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 the companies of the
Group obtain benefits from the activities of these companies (subsidiaries).

CONSOLI DATED SUBSI DI ARI ES
The application of IAS 19R affects the presentation of the contribution of Porsche SEs holding
company operating business as of August 1, 2012. The adjustments are explained in the
accounting policies. After adjustment to reflect the application of IAS 19R, the business
combination generated goodwill of 18,825 million (originally 18,871 million).

Following the 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. For the current fiscal year,
Truck & Bus GmbH is guaranteeing the noncontrolling interest shareholders of MAN SE a
minimum dividend in line with the cash compensation.

36
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 share-
holders, 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 retained earnings 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
September 30, 2013, 209,971 ordinary shares and 48,071 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. The interest in the capital of Scania AB attributable to the shareholders of Volkswagen AG
has increased to 62.64% (December 31, 2012: 59.13%).
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 settle-
ment 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 agree-
ment 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, which was recognized in the other
financial result. It is not currently possible to predict the exact duration of the proceedings.

I NTERESTS I N JOI NT VENTURES
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 for
an initial period of two years. The agreement was prolonged until January 2, 2014. 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. Volkswagen AG 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.

I NVESTMENTS I N ASSOCI ATES
There were no significant changes compared with the disclosures in the 2012 Annual Report.

37
Disclosures on the consolidated financial statements
1 | Sales revenue
STRUCTURE OF GROUP SALES REVENUE

Q13

million
2013 2012

Vehicles 99,957 101,582

Genuine parts 10,148 9,006

Used vehicles and third-party products 5,941 4,956

Engines, powertrains and parts deliveries 6,270 6,550

Power Engineering 2,739 3,035

Motorcycles 386 78

Rental and leasing business 10,431 8,703

Interest and similar income 4,653 4,728

Other sales revenue 5,147 5,588

145,673 144,226

2 | Cost of sales
Cost of sales includes interest expenses of 1,589 million (previous year: 1,973 million)
attributable to the financial services business.
In addition to depreciation and amortization expenses, cost of sales also includes
impairment losses on intangible assets, items of property, plant and equipment, and leasing and
rental assets. The impairment losses identified on the basis of updated impairment tests
amount to a total of 189 million (previous year: 164 million).

3 | Research and development costs in the Automotive Division

Q13

million
2013 2012 %

Total research and development costs 8,431 6,985 20.7

of which: capitalized development costs 2,558 1,682 52.0

Capitalization ratio in % 30.3 24.1

Amortization of capitalized development costs 1,740 1,393 25.0

Research and development costs recognized in the
income statement 7,613 6,695 13.7

38
4 | Earnings per share
Basic earnings per share are calculated by dividing profit attributable to shareholders of
Volkswagen AG by the weighted average number of ordinary and preferred shares outstanding
during the reporting period.
The Annual General Meeting on April 22, 2010 resolved to create contingent capital in the
amount of up to 102.4 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, Volkswagen 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, another mandatory convertible note in the
principal amount of 1.2 billion was issued to supplement the original mandatory convertible
note. 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. Because of the fixed conversion
ratio, the mandatory convertible note is recognized in the capital reserves at an amount of
1,149 million, including a premium and deferred interest (69 million), net of transaction costs
(14 million) and the deferral of taxes (49 million), and in the financial liabilities at an amount
of 156 million.
The current minimum conversion price is 150.81, and the maximum conversion price is
180.97. 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. Volkswagen 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 discretionary conversion
right was exercised in the reporting period, with a total of 1 million of the notes being
converted into 5,393 newly created preferred shares at the effective maximum conversion price
at the conversion date.
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 minimum conversion price of 150.81. In total, the existing
mandatory convertible notes still entitle the holders to subscribe for a maximum of 24,527,551
no-par value preferred shares of Volkswagen AG.

39

Q3 Q13

2013 2012* 2013 2012*

Weighted average number of shares outstanding

Ordinary shares: basic million 295.1 295.1 295.1 295.1

diluted million 295.1 295.1 295.1 295.1

Preferred shares: basic million 194.7 170.1 189.8 170.1

diluted million 194.7 170.1 189.8 170.1

Profit after tax million 1,909 11,305 6,702 20,152

Noncontrolling interests million 48 40 18 93

Profit attributable to Volkswagen AG hybrid capital investors million 5 0 5 0

Profit attributable to shareholders of Volkswagen AG million 1,856 11,265 6,714 20,059

Earnings per share

Ordinary shares: basic 3.79 24.21 13.82 43.10

diluted 3.79 24.21 13.82 43.10

Preferred shares: basic 3.79 24.21 13.88 43.16

diluted 3.79 24.21 13.88 43.16

* Prior-year figures adjusted to reflect application of IAS 19R.
5 | Noncurrent assets
CHANGES I N SELECTED NONCURRENT ASSETS BETWEEN JANUARY 1 AND SEPTEMBER 30, 2013

million
Carrying amount
at Jan. 1, 2013*
Additions/
Changes in
consolidated
Group
Disposals/
Other changes

Depreciation
and amortization
Carrying amount
at Sept. 30, 2013

Intangible assets 59,112 2,739 294 2,681 58,877

Property, plant and equipment 39,424 6,680 941 4,904 40,259

Leasing and rental assets 20,034 9,287 4,665 3,074 21,582

* Prior-year figures adjusted to reflect application of IAS 19R.

40
6 | Inventories

million
Sept. 30, 2013 Dec. 31, 2012

Raw materials, consumables and supplies 3,842 3,506

Work in progress 3,557 3,504

Finished goods and purchased merchandise 18,497 18,015

Current leased assets 3,723 3,477

Payments on account 153 172

29,772 28,674

There was no requirement to recognize or reverse significant impairment losses on inventories
in the reporting period.

7 | Current other receivables and financial assets

million
Sept. 30, 2013 Dec. 31, 2012

Trade receivables 11,661 10,099

Miscellaneous other receivables and financial assets 11,614 11,456

23,275 21,555

In the period January 1, 2013 to September 30, 2013, impairment losses and reversals of
impairment losses on noncurrent and current financial assets reduced operating profit by
541 million (previous year: 464 million).

8 | Equity
In November 2012, Volkswagen AG successfully placed a 2.5 billion mandatory convertible
note. This led to a 2,181 million increase in equity for the Volkswagen Group. The placement of
a new mandatory convertible note in the amount of 1.2 billion in June 2013 increased the
Volkswagen Groups equity by 1,149 million.

41
Following the approval by the Annual General Meeting of MAN SE of the conclusion of a control
and profit and loss transfer agreement on June 6, 2013, the noncontrolling interests in the
equity of MAN SE were derecognized from Group equity as a capital transaction involving a
change in ownership interest. At the same time, a liability was recognized as a separate item of
current liabilities in accordance with the cash settlement offer. This reduces the Volkswagen
Groups equity by a total of 3,125 million. For more information, please see the disclosures on
the basis of consolidation.
In August 2013, Volkswagen AG placed unsecured subordinated hybrid notes with an
aggregate principal amount of 2 billion via a subsidiary, Volkswagen International Finance N.V.
Amsterdam/the Netherlands (issuer). The issuer transferred the proceeds to Volkswagen AG
under the terms of a loan agreement. 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 3.875%) is after five years, and the first call date for the second tranche (0.75 billion
and a coupon of 5.125%) is after ten years. 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 trans-
action costs and net of deferred taxes. The interest payments payable to the noteholders will be
recognized directly in equity, net of income taxes.
The subscribed capital is composed of 295,089,818 no-par value ordinary shares and
170,148,171 preferred shares, and amounts to 1,191 million (December 31, 2012: 1,191 mil-
lion). In the first quarter of 2013, Volkswagen AG issued 5,393 newly created preferred shares
(notional value: 13,806) resulting from the exercise of mandatory convertible bonds.
Volkswagen AG paid a dividend of 1,639 million in the reporting period (previous year:
1,406 million). 1,033 million of this amount (previous year: 885 million) was attributable to
ordinary shares and 606 million (previous year: 521 million) to preferred shares.

9 | Noncurrent financial liabilities

million
Sept. 30, 2013 Dec. 31, 2012

Bonds, commercial paper and notes 51,143 49,570

Liabilities to banks 8,779 10,621

Deposit business 1,309 1,943

Other financial liabilities 1,325 1,470

62,557 63,603

10 | Current financial liabilities

million
Sept. 30, 2013 Dec. 31, 2012

Bonds, commercial paper and notes 25,026 22,028

Liabilities to banks 9,808 9,670

Deposit business 23,341 21,974

Other financial liabilities 407 388

58,583 54,060

42
11 | Fair value disclosures
The principles and techniques used for fair value measurement remained unchanged year-on-
year. Detailed explanations of the measurement principles and techniques can be found in the
2012 Annual Report.
Fair value generally corresponds 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.
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.
Available-for-sale financial assets (marketable securities) are carried at fair value. Changes
in fair value are recognized directly in equity, net of deferred taxes.
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.
Items are measured using uniform measurement techniques and inputs. The fair value of
Level 2 and 3 financial instruments is measured in the individual divisions on the basis of
Group-wide specifications.
The following table contains an overview of the balance sheet items measured at fair value:

BALANCE SHEET I TEMS MEASURED AT FAI R VALUE

million
Dec. 31, 2012 Level 1 Level 2 Level 3

Financial assets at fair value through profit or loss

Derivatives 3,057 2,939 119


Other equity investments 2,606 2,606

Marketable securities 7,433 7,419 14

Financial assets measured at fair value 13,096 10,025 2,953 119

Financial liabilities at fair value through profit
or loss


Financial liabilities measured at fair value 2,818 2,757 60

43

million
Sept. 30, 2013 Level 1 Level 2 Level 3

Financial assets at fair value through profit or loss



Other equity investments 2,427 2,427

Marketable securities 7,666 7,666 0

Financial assets measured at fair value 13,560 10,093 3,426 41

Financial liabilities at fair value through profit
or loss


Financial liabilities measured at fair value 2,125 1,961 164

The allocation of fair values to the three levels in the fair value hierarchy is based on the
availability of observable market prices in an active market. Level 1 is used to report the fair
value of financial instruments for which a quoted price is available. Examples include
marketable securities and other equity investments measured at fair value. Fair values in Level
2, e.g. of derivatives, are measured on the basis of market inputs such as exchange rates or yield
curves using market-based valuation techniques. Level 3 fair values are calculated using
valuation techniques that incorporate inputs that are not directly observable in active markets.
In the Volkswagen Group, Level 3 fair values comprise long-term commodity futures because
the prices available on the market must be extrapolated for measurement purposes. Options on
equity instruments and residual value protection models are also reported in Level 3.

CHANGES I N BALANCE SHEET I TEMS MEASURED AT FAI R VALUE BASED ON LEVEL 3

million
Financial assets
measured at fair value
Financial liabilities
measured at fair value

Balance at Jan. 1, 2013 119 60

Foreign exchange differences 0 0

Total comprehensive income 64 134

recognized in profit or loss 59 122

recognized in other comprehensive income 5 12

Additions (purchases) 1 1

Sales and settlements 6 15

Transfers into Level 2 9 17

Balance at Sept. 30, 2013 41 164

Total gains or losses recognized in profit or loss 59 122

Net other operating expense/income 59 156

of which attributable to assets/liabilities
held at the reporting date 59 156

Financial result 0 35

of which attributable to assets/liabilities
held at the reporting date 3 35

44
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 September 30, 2013, profit would have been 4 million higher (lower) and equity
would have been 13 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
higher. If the assumed enterprise values had been 10% lower, profit would have been
8 million lower.
Residual value risks result from hedging agreements with dealers under which earnings
effects caused by market-related 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 September 30, 2013, profit after tax would have been 243 million higher. If the
prices for the used cars covered by the residual value protection model had been 10% lower as
of September 30, 2013, profit after tax would have been 243 million lower.

RECONCI LI ATI ON OF BALANCE SHEET I TEMS TO CLASSES OF FI NANCI AL I NSTRUMENTS
The following table shows the reconciliation of the balance sheet items to the relevant classes of
financial instruments, broken down by 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.

45
AS OF DECEMBER 31, 2012

MEAS UR E D
AT FAI R
VAL UE

MEAS UR E D AT AMORTI Z ED
COST
NOT WI THI N
S COPE OF
I F RS 7
BAL ANCE
S HE E T I T EM
AT DE C. 31,
2012

million
Carrying
amount
Carrying
amount Fair value Carrying amount

Noncurrent assets

Equity-accounted investments 7,309 7,309

Other equity investments 2,606 1,265 1,265 3,870

Financial services receivables 49,785 50,491 49,785

Other financial assets 2,226 4,206 4,279 6,431

Current assets

Trade receivables 10,099 10,099 10,099


Other financial assets 832 5,041 5,041 5,872

Marketable securities 7,433 7,433

Cash, cash equivalents and time
deposits 18,488 18,488 18,488

Noncurrent liabilities

Noncurrent financial liabilities 63,603 66,183 63,603

Other noncurrent financial
liabilities 1,587 810 816 2,397

Current liabilities

Put options and compensation
rights granted to noncontrolling
interest shareholders

Current financial liabilities 54,060 54,060 54,060

Trade payables 17,268 17,268 17,268

Other current financial liabilities 1,230 3,195 3,195 4,425

46
AS OF SEPTEMBER 30, 2013

MEAS UR E D
AT FAI R
VAL UE

MEAS UR E D AT AMORTI Z ED
COST
NOT WI THI N
S COPE OF
I F RS 7
BAL ANCE
S HE E T I T EM
AT S E PT.
30, 2013

million
Carrying
amount
Carrying
amount Fair value Carrying amount

Noncurrent assets

Equity-accounted investments 7,274 7,274

Other equity investments 2,427 1,328 1,328 3,755



Current assets

Trade receivables 11,661 11,661 11,661



Marketable securities 7,666 7,666

Cash, cash equivalents and time
deposits 26,400 26,400 26,400

Noncurrent liabilities

Noncurrent financial liabilities 62,557 64,606 62,557

Other noncurrent financial
liabilities 1,113 892 906 2,005

Current liabilities

Put options and compensation
rights granted to noncontrolling
interest shareholders 3,630 3,601 3,630

Current financial liabilities 58,583 58,583 58,583

Trade payables 18,021 18,021 18,021

Other current financial liabilities 1,012 2,751 2,751 3,763

47
12 | Cash flow statement
The cash flow statement presents the cash inflows and outflows in the Volkswagen Group and in
the Automotive and Financial Services divisions. Cash and cash equivalents comprise cash at
banks, checks, bills, cash-in-hand and call deposits.

million
Sept. 30, 2013 Sept. 30, 2012

Cash, cash equivalents and time deposits as reported in the balance
sheet 26,400 18,059

of which: time deposits and restricted cash 2,761 621

Cash and cash equivalents as reported in the cash flow statement 23,639 17,438

Cash inflows from financing activities in the current year are attributable primarily to the
issuance of bonds in the amount of 16,352 million (previous year: 17,351 million), inflows
from the issuance of a mandatory convertible note in the amount of 1,099 million (see note 4)
and the issuance of hybrid notes in the amount of 1,967 million (see note 8). They are offset
mainly by cash outflows from the repayment of bonds amounting to 9,999 million (previous
year: 10,609 million), the change in other financial liabilities amounting to 768 million
(previous year: inflows of 5,804 million) and capital transactions with noncontrolling interests
in the amount of 0 million (previous year: 2,101 million).

13 | 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. Due to a change to the
internal reporting structure as of January 1, 2013, light commercial vehicles are no longer
allocated to the Passenger Cars and Light Commercial Vehicles segment, but are reported
together with trucks and buses in the new Commercial Vehicles segment. The segment
designations and prior-year figures were adjusted accordingly. The prior-year figures were also
adjusted to reflect the application of IAS 19R.
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, as well as fleet management.
In the segment structure, purchase price allocation for companies acquired is allocated
directly to the corresponding segments.

48
The business of Porsche AG acquired in fiscal year 2012 is allocated to the Passenger Cars
segment, with the exception of Porsches financial services activities, which are presented in the
Financial Services segment. The Ducati Group, which was also acquired in fiscal year 2012, is
allocated to the Audi operating segment and is thus presented in the Passenger Cars reporting
segment.
At Volkswagen, segment profit or loss is measured on the basis of operating profit or loss.
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.
As a matter of principle, business relationships between the companies within the segments of
the Volkswagen Group are transacted at arms length prices.

REPORTI NG SEGMENTS: Q13 2012*

million

Passenger
Cars
Commercial
Vehicles
Power
Engineering
Financial
Services

Total
segments

Recon-
ciliation
Volkswagen
Group

Sales revenue from
external customers 109,070 18,599 3,035 13,419 144,122 103 144,226

Intersegment sales revenue 7,248 3,530 9 1,234 12,021 12,021

Total sales revenue 116,318 22,129 3,044 14,653 156,143 11,918 144,226

Segment profit or loss (operating
profit or loss) 7,872 518 8 1,106 9,487 630 8,857

* Figures adjusted.
REPORTI NG SEGMENTS: Q13 2013

million

Passenger
Cars
Commercial
Vehicles
Power
Engineering
Financial
Services

Total
segments

Recon-
ciliation
Volkswagen
Group

Sales revenue from
external customers 108,720 18,698 2,739 15,166 145,323 349 145,673

Intersegment sales revenue 7,430 3,881 3 1,336 12,650 12,650

Total sales revenue 116,150 22,579 2,742 16,502 157,973 12,301 145,673

Segment profit or loss (operating
profit or loss) 7,907 692 302 1,333 9,629 1,071 8,557

RECONCI LI ATI ON*

Q13

million
2013 2012

Segment profit or loss (operating profit or loss) 9,629 9,487

Unallocated activities 100 162

Group financing 11 37

Consolidation adjustments 1,161 756

Operating profit 8,557 8,857

Financial result 842 14,099

Consolidated profit before tax 9,399 22,957

* Prior-year figures adjusted.

49
14 | Related party disclosures
At 50.73%, Porsche SE holds the majority of the voting rights in Volkswagen AG.
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 continues to have the power to participate in the operating policy
decisions of the Volkswagen Group.

S UPPL I E S AND S ERVI CE S
R E NDE R E D
S UPPL I E S AND S ERVI CE S
R E CE I VE D

Q13 Q13

million
2013 2012 2013 2012

Porsche SE 7 1 10 1

Supervisory Board members 1 1 2 3

Unconsolidated subsidiaries 587 859 451 535

Joint ventures and their majority interests* 10,107 11,618 903 1,417

Associates and their majority interests 200 272 218 355

State of Lower Saxony, its majority interests and joint ventures 6 5 1 1

* Porsche Zwischenholding GmbH, Stuttgart, and its majority interests until July 31, 2012.

R E CE I VABL E S ( I NCL . COL L ATE RAL
R E CE I VE D) F ROM
L I ABI L I TI E S ( I NCL . OBL I GATI ONS )
TO

million
Sept. 30, 2013 Dec. 31, 2012 Sept. 30, 2013 Dec. 31, 2012

Porsche SE 365 862 219 896

Supervisory Board members 0 0 161 215

Unconsolidated subsidiaries 1,013 950 468 456

Joint ventures and their majority interests* 5,632 4,958 2,052 1,752

Associates and their majority interests 33 40 46 72

State of Lower Saxony, its majority interests and joint ventures 3 0 0 0

* Prior-year figures adjusted.
The goods and services received from joint ventures in the first nine months do not include
resolved dividend distributions amounting to 2,774 million (previous year: 3,903 million).
The supplies and services received from Porsche SE relate, among other things, 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 receivables from Porsche SE comprise a receivable under a loan agreement and
receivables from land transfer taxes. The obligations to Porsche SE consist mainly of term
deposits and interest payable.

50
Obligations to members of the Supervisory Board amounting to 161 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 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.

15 | Litigation
The Volkswagen Groups 2012 Annual Report contains information on legal proceedings in
respect of irregularities in the course of the handover of four-stroke marine diesel engines by
MAN Diesel & Turbo. In this connection, the Augsburg Local Court imposed an administrative
fine in the single-digit millions on MAN Diesel & Turbo SE. The investigations by the Augsburg
Public Prosecution Office into MAN Diesel & Turbo SE were terminated on payment of this
amount. Additionally, we reported in the 2012 Annual Report on investigations conducted by the
South Korean antitrust authorities into MAN Truck & Bus (Korea) Limited, Seoul/South Korea,
and at the Scania-owned import company in South Korea. At a press conference in July 2013,
the Korea Fair Trade Commission (KFTC) announced that it had decided to impose a fine on
Daimler, Hyundai, MAN, Scania Korea, Tata Daewoo and Volvo for colluding to fix prices. The
fine announced for the subsidiaries of MAN and Scania affected by this decision is expected to
amount to somewhat over 14 million in total. Scania and MAN are now awaiting the formal
decision by the KFTC before deciding on how to proceed.
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. It is not uncommon for noncontrolling interest share-
holders to institute such proceedings. Volkswagen AG 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. It is not currently
possible to predict the exact duration of the proceedings.
There have been no other significant changes since the publication of the 2012 Annual
Report.

16 | Contingent assets and liabilities
There were no significant changes as of September 30, 2013 in the contingent assets and
liabilities described in the 2012 Annual Report.

17 | Other financial obligations
The other financial obligations increased by 3,337 million compared with the 2012
consolidated financial statements to 25,441 million, due in particular to an increase in
purchase commitments for items of property, plant and equipment, and intangible assets,
because of initiated or planned investment projects.

51
German Corporate Governance Code
The current declarations in accordance with section 161 of the Aktiengesetz (AktG German Stock
Corporation Act) on the German Corporate Governance Code by the Board of Management and
Supervisory Board of Volkswagen AG, AUDI AG, MAN SE and Renk AG are permanently available on
the Internet at www.volkswagenag.com/ir, www.audi.com, www.man.eu and www.renk.biz
respectively.

Significant events after the balance sheet date
There were no significant events after the end of the first nine months of 2013.

Wolfsburg, October 30, 2013

Volkswagen Aktiengesellschaft

The Board of Management

52
This report was originally prepared in German. In case of ambiguities the German version shall
prevail:

Review Report

To VOLKSWAGEN AKTIENGESELLSCHAFT, Wolfsburg

We have reviewed the condensed consolidated interim financial statements comprising the
condensed income statement and condensed statement of comprehensive income, the condensed
balance sheet, the condensed statement of changes in equity, the condensed cash flow statement
and selected explanatory notes and the interim group management report of VOLKSWAGEN
AKTIENGESELLSCHAFT, Wolfsburg, for the period from January 1 to September 30, 2013, which
are part of the quarterly financial report pursuant to (Article) 37x Abs. (paragraph) 3 WpHG
("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed
consolidated interim financial statements in accordance with the IFRSs applicable to interim
financial reporting, as adopted by the EU, and of the interim group management report in
accordance with the provisions of the German Securities Trading Act applicable to interim
group management reports is the responsibility of the parent Company's Board of Management.
Our responsibility is to issue a review report on the condensed consolidated interim financial
statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and
the interim group management report in accordance with German generally accepted standards
for the review 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 review so that we can preclude through critical evaluation, with moderate
assurance, that the condensed consolidated interim financial statements have not been
prepared, in all material respects, in accordance with the IFRSs applicable to interim financial
reporting, as adopted by the EU, and that the interim group management report has not been
prepared, in all material respects, in accordance with the provisions of the German Securities
Trading Act applicable to interim group management reports. A review is limited primarily to
inquiries of company personnel and analytical procedures and therefore does not provide the
assurance attainable in a financial statement audit. Since, in accordance with our engagement,
we have not performed a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the
condensed consolidated interim financial statements have not been prepared, in all material
respects, in accordance with the IFRS, applicable to interim financial reporting, as adopted by
the EU, nor that the interim group management report has not been prepared, in all material
respects, in accordance with the provisions of the German Securities Trading Act applicable to
interim group management reports.

Hanover, October 30, 2013

PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft

Harald Kayser Martin Schrder
German Public Auditor German Public Auditor
Review Report

Contact Information
PUBLI SHED BY
Volkswagen AG
Finanzpublizitt
Brieffach 1848-2
38436 Wolfsburg
Germany
Phone +49 5361 9-0
Fax +49 5361 9-28282

I NVESTOR RELATI ONS
Volkswagen AG
Investor Relations
Brieffach 1849
38436 Wolfsburg
Germany
Phone +49 5361 9-86622 IR Hotline
Fax +49 5361 9-30411
E-mail [email protected]
Internet www.volkswagenag.com/ir

Volkswagen AG
Investor Relations
17C Curzon Street
London W1J 5HU
United Kingdom
Phone +44 20 7290 7820

Volkswagen Group China
No. 3A, Xi Liu Jie, Sanlitun Road
Chaoyang District
Beijing 100027, P.R. China
Phone +86 10 6531 3000

Volkswagen Group of America, Inc.
Investor Relations Liaison Office
(Questions relating to American
Depositary Receipts)
2200 Ferdinand Porsche Drive
Herndon, Virginia 20171
USA
Phone +1 703 364 7000

This Interim Report is also available on the
Internet, in German and English, at: www.volkswagenag.com/ir

Printed in Germany
358.809.547.20

Financial Calendar
March 13, 2014
Volkswagen AG Annual Media Conference and Investor Conference
April 29, 2014
Interim Report January March 2014
May 13, 2014
Volkswagen AG Annual General Meeting in Hanover
July 31, 2014
Half-Yearly Financial Report 2014
October 30, 2014
Interim Report January September 2014
J ANUARY S E P T E MB E R 2 0 1 3
Interim Report

Informe VW 2013

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