Refinancing

REFINANCING STRUCTURE OF THE VOLKSWAGEN GROUP
as of December 31, 2012

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In light of the Volkswagen Group’s sustained growth, we further diversified our refinancing activities in 2012. Last year, Volkswagen refinanced the equivalent of €25 billion through the issue of bonds, tapping into additional financial markets in the process. Around half of the bonds placed in 2012 were denominated in euros.

As in previous years, our refinancing activities were concentrated on the Financial Services Division.

In the growth markets of the Volkswagen Group, we expanded our activities through bond placements, placing two issues totaling USD 6.0 billion on the US market and a bond of CNY 1.0 billion on the Hong Kong refinancing market. We also executed transactions in the Brazilian and Indian capital markets for the first time.

In November 2012 Volkswagen successfully placed a mandatory convertible note in the amount of €2.5 billion, which entitles and obliges holders to subscribe for Volkswagen preferred shares. It has a coupon of 5.50% and expires on November 9, 2015, though the note terms and conditions provide for early conversion.

Volkswagen also broadened its investor base through the use of different capital market instruments and varying terms. Its breakdown is shown in the chart above.

We generally eliminate interest rate and foreign currency risk in all our financing transactions by entering into derivatives contracts at the same time.

The table below shows how our money and capital market programs were utilized as of December 31, 2012 and illustrates the financial flexibility of the Volkswagen Group:

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Programs		Authorized volume € billion		Amount utilized on Dec. 31, 2012 € billion
Commercial paper		25.7		5.3
Medium-term notes		68.1		36.9
Other capital market programs		21.3		10.1
Asset-backed securities		43.9		18.4

The syndicated credit line of €5.0 billion agreed in July 2011 including two options for extension by a year in each case was extended for the first time by one year to July 2017 (from July 2016 to July 2017 with a reduced amount of €4.916 billion). A second option allows the credit line to be extended by a further year in 2013. The credit line remains unused.

Syndicated credit lines worth a total of €4.7 billion at other Group companies have also not been drawn down. In addition, Group companies arranged bilateral credit lines with national and international banks in various other countries for a total of €39.2 billion, of which €19.1 billion has not been drawn down. These extensive financing measures ensure the solvency of the Volkswagen Group at all times.