Cash flows are presented in the cash flow statement classified into cash flows from operating activities, investing activities and financing activities, irrespective of the format of the balance sheet.

Cash flows from operating activities are derived indirectly from profit before tax. Profit before tax is adjusted to eliminate noncash expenditures (mainly depreciation and amortization) and income. Other noncash income and expenses include in particular income from the remeasurement of the Porsche call option amounting to €1,875 million (previous year: €6,554 million). This results in cash flows from operating activities after accounting for changes in working capital, which also include changes in leasing and rental assets and in financial services receivables.

Investing activities include additions to property, plant and equipment and equity investments, additions to capitalized development costs and investments in securities and loans.

Financing activities include outflows of funds from dividend payments and redemption of bonds, inflows from the capital increase and issuance of bonds, and changes in other financial liabilities. Please refer to note 24 for information on the inflows from the issuance of a mandatory convertible note (€2,048 million) contained in the capital contributions.

The changes in balance sheet items that are presented in the cash flow statement cannot be derived directly from the balance sheet, as the effects of currency translation and changes in the consolidated Group are noncash transactions and are therefore eliminated.

In 2012, cash flows from operating activities include interest received amounting to €5,740 million (previous year: €7,202 million) and interest paid amounting to €3,915 million (previous year: €4,796 million). In addition, the share of profits and losses of equity-accounted investments (note 7) includes dividends amounting to €3,925 million (previous year: €1,487 million).

Dividends amounting to €1,406 million (previous year: €1,034 million) were paid to Volkswagen AG shareholders.







€ million


Dec. 31, 2012


Dec. 31, 2011

Cash, cash equivalents and time deposits as reported in the balance sheet





Time deposits and restricted cash





Cash and cash equivalents as reported in the cash flow statement





Time deposits and restricted cash are not classified as cash equivalents. Time deposits have a contractual maturity of more than three months. Restricted cash at the reporting date amounted to €128 million (previous year: €– million). The maximum default risk corresponds to its carrying amount.

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