Investments

INVESTMENTS IN ASSOCIATES

The acquisition of the majority interest in MAN SE in fiscal year 2011 meant that MAN’s 30% interest in Ferrostaal GmbH (formerly: Ferrostaal AG), Essen, was attributable to Volkswagen. There was already an intention to sell the investment in the near term at the time it was acquired, so the shares were classified as held for sale and not accounted for using the equity method. The investment had already been written down in full as of December 31, 2011. On March 7, 2012, the settlement agreement between MAN SE and the International Petroleum Investment Company (IPIC), Abu Dhabi, regarding the repurchase of the 70% interest in Ferrostaal held by IPIC was completed (settlement with IPIC).

This resulted in a cash outflow of €350 million, which is reported as part of the cash flows from operating activities.

At the same time, the agreement between MAN and MPC Industries GmbH, Hamburg, regarding the transfer of 100% of the shares of Ferrostaal to MPC and a co-investor was implemented (the MPC sale). The completion of the settlement with IPIC and the sale of MPC did not result in any earnings effects for Volkswagen because the earnings effects attributable to the transaction had already been included in purchase price allocation for the MAN Group as a contingent liability.

The following carrying amounts are attributable to the Volkswagen Group from its proportionate interest in Sinotruk (Hong Kong) Limited, Hong Kong (Sinotruk), and Rheinmetall MAN Military Vehicles GmbH, Munich (RMMV):

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		Sinotruk				RMMV
€ million		2012		2011		2012		2011
1 Amounts for Sinotruk refer to the June 30 reporting date and for RMMV to the September 30 reporting date. 2 Amounts for Sinotruk refer to the period from July 1 to June 30 and for RMMV to the period from October 1 to September 30.
Equity interest ( %)		25.0		25.0		49.0		49.0
Share of quoted market price		400		298		–		–
Assets1		1,499		1,601		184		31
Liabilities1		858		1,053		159		26
Sales revenue2		859		1,079		185		44
Profit/loss for the period2		8		49		9		1

INTERESTS IN JOINT VENTURES

The following carrying amounts are attributable ratably to the Volkswagen Group from its proportionate interest in joint ventures:

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€ million		FAW -Volkswagen Automotive Company		Shanghai-Volkswagen Automotive Company		Global Mobility Holding		Porsche Holding Stuttgart*		Others		Total
* Application of the equity method was terminated on August 1, 2012 when this company was fully consolidated. The disclosures on income and expenses for 2012 relate to the period up to July 31.
2012
Equity interest (%)		40.0		50.0		50.0		49.9		–		–
Noncurrent assets		1,991		1,925		5,510		–		2,018		11,445
Current assets		3,828		2,807		4,714		–		1,666		13,015
Noncurrent liabilities		442		323		3,885		–		1,006		5,655
Current liabilities		2,961		2,486		4,690		–		1,723		11,861
Income		13,351		10,122		522		4,497		2,172		30,666
Expenses		11,834		9,065		401		4,069		1,959		27,328
2011
Equity interest (%)		40.0		50.0		50.0		49.9		–		–
Noncurrent assets		1,594		1,484		5,254		5,744		1,710		15,786
Current assets		3,278		2,622		4,683		1,696		1,994		14,274
Noncurrent liabilities		314		227		3,572		5,466		1,376		10,954
Current liabilities		2,717		1,993		4,823		2,600		1,567		13,700
Income		9,512		8,134		508		6,387		2,264		26,806
Expenses		8,435		7,206		408		5,803		2,123		23,975

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 by a further two years in fiscal year 2011. 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 €1.5 billion to secure a loan granted to Fleet Investments B.V. by Bankhaus Metzler. This pledge does not increase the Volkswagen Group’s risk arising from the above-mentioned short position.