Basis of consolidation

In addition to Volkswagen AG, the consolidated financial statements comprise all significant companies at which Volkswagen AG is able, directly or indirectly, to govern the financial and operating policies in such a way that it can obtain benefits from the activities of these companies (subsidiaries). The subsidiaries also comprise special purpose entities whose net assets are attributable to the Group under the principle of substance over form. The special purpose entities are used primarily to enter into asset-backed securities transactions to refinance the financial services business. Consolidation of subsidiaries begins at the first date on which control exists, and ends when such control no longer exists.

Subsidiaries whose business is dormant or of low volume and that are insignificant for the fair presentation of the net assets, financial position and results of operations as well as the cash flows of the Volkswagen Group are not consolidated. They are carried in the consolidated financial statements at the lower of cost or fair value since no active market exists for these companies and fair values cannot be reliably ascertained without undue cost or effort. The aggregate equity of these subsidiaries amounts to 0.9% (previous year: 1.2%) of Group equity. The aggregate profit after tax of these companies amounts to 0.4% (previous year: 0.2%) of the profit after tax of the Volkswagen Group.

Significant companies where Volkswagen AG is able, directly or indirectly, to significantly influence financial and operating policy decisions (associates), or that are directly or indirectly jointly controlled (joint ventures), are accounted for using the equity method. Joint ventures also include companies in which the Volkswagen Group holds the majority of voting rights, but whose articles of association or partnership agreements stipulate that important decisions may only be resolved unanimously. Insignificant associates and joint ventures are generally carried at the lower of cost or fair value.

The composition of the Volkswagen Group is shown in the following table:

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		2012		2011
Volkswagen AG and consolidated subsidiaries
Germany		156		123
International		825		729
Subsidiaries carried at cost
Germany		73		66
International		206		202
Associates, joint ventures and other equity investments
Germany		36		42
International		68		64
		1,364		1,226

The list of all shareholdings that forms part of the annual financial statements of Volkswagen AG can be downloaded from the electronic companies register at www.unternehmensregister.de and from www.volkswagenag.com/ir by clicking on “Further mandatory Publications” under the heading “Mandatory Publications”.

The following consolidated German subsidiaries with the legal form of a corporation or partnership meet the criteria set out in section 264(3) or section 264b of the Handelsgesetzbuch (HGB – German Commercial Code) due to their inclusion in the consolidated financial statements and have as far as possible exercised the option not to publish annual financial statements:

• Audi Akademie GmbH, Ingolstadt
• Audi Berlin GmbH, Berlin
• Audi Frankfurt GmbH, Frankfurt am Main
• Audi Hamburg GmbH, Hamburg
• Audi Hannover GmbH, Hanover
• Audi Leipzig GmbH, Leipzig
• Audi Stuttgart GmbH, Stuttgart
• Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt
• Automobilmanufaktur Dresden GmbH, Dresden
• Autostadt GmbH, Wolfsburg
• AutoVision GmbH, Wolfsburg
• Bugatti Engineering GmbH, Wolfsburg
• Haberl Beteiligungs-GmbH, Munich
• MAHAG GmbH, Munich
• quattro GmbH, Neckarsulm
• Raffay Versicherungsdienst GmbH, Hamburg
• VfL Wolfsburg-Fußball GmbH, Wolfsburg
• VGRD GmbH, Wolfsburg
• Volim Volkswagen Immobilien Vermietgesellschaft für VW-/Audi-Händlerbetriebe mbH, Braunschweig
• Volkswagen Automobile Berlin GmbH, Berlin
• Volkswagen Automobile Frankfurt GmbH, Frankfurt am Main
• Volkswagen Automobile Hamburg GmbH, Hamburg
• Volkswagen Automobile Stuttgart GmbH, Stuttgart
• Volkswagen Financial Services Beteiligungsgesellschaft mbH, Braunschweig
• Volkswagen Gebrauchtfahrzeughandels und Service GmbH, Langenhagen
• Volkswagen Group Real Estate GmbH & Co. KG, Wolfsburg
• Volkswagen Immobilien GmbH, Wolfsburg
• Volkswagen Logistics GmbH & Co. OHG, Wolfsburg
• Volkswagen Original Teile Logistik GmbH & Co. KG, Baunatal
• Volkswagen Osnabrück GmbH, Osnabrück
• Volkswagen R GmbH, Wolfsburg
• Volkswagen Sachsen GmbH, Zwickau
• Volkswagen Versicherungsvermittlung GmbH, Braunschweig
• Volkswagen Vertriebsbetreuungsgesellschaft mbH, Chemnitz
• Volkswagen Zubehör GmbH, Dreieich
• Volkswagen-Versicherungsdienst GmbH, Braunschweig