VOLKSWAGEN INTERNATIONAL FINANCE N.V.
INTERIM FINANCIAL STATEMENTS
3
Report of the Management Board
Volkswagen International Finance N.V. (‘VIF’ or ‘the company’), founded in 1977, is one of the
funding vehicles of Volkswagen AG, Wolfsburg (VWAG) and its subsidiaries. VIF raises funds
from the capital markets by issuing notes and lends the proceeds on to group and joint venture
companies.
Basis for the issuing activities are the EUR 30 billion Debt Issuance Programme (DIP) that
adheres to the European Prospectus Directive Standards and a EUR 15 billion Multi-Currency
Commercial Paper Programme (CP Programme). All issues are guaranteed by VWAG. According
to Moody’s, VWAG’s rating is set to P-2 (short-term) and A3 (long-term) with a negative outlook.
Standard & Poor’s assessed VWAG’s creditworthiness as A-2 (short-term) and BBB+ (long-
term) with a stable outlook.
In March 2022 VIF called and redeemed all the EUR 1.1 billion hybrid notes that were issued by
the company in 2015. During the first half of 2022 a total amount EUR 1.6 billion in bonds was
repaid. In the first half of 2022 there have not been any activities under the CP Programme and
DIP.
The main risks of VIF are interest rate risk, currency risk, liquidity risk and credit risk. The
financing activities are carried out in different currencies and interest terms. To avoid currency
and interest rate risks, the company concludes interest rate and currency swaps. The Supervisory
Board has set limits to restrict those risks. VIF uses adequate tools to assess and to monitor them.
European Union regulations transformed into Dutch Law require the presentation of half-year
balance sheet figures in comparison to year-end figures of the previous year. Income statement
figures compare the half-year result with the corresponding half-year result of the previous year.
Within the first half year of 2021, VIF realized earnings of EUR 107.1 million after taxes
against EUR 55.6 million in the first half of 2021. The company generates income mainly from
the group financing business and dividends. The net interest income from group financing
activities amounted to EUR 16.3 million (2021: EUR 16.2 million). Net gains on equity
instruments were EUR 162.4 million (2021: EUR 24.1 million). This consists
of dividend received of EUR 11.3 million and the gains from disposals of equity instruments of
EUR 151.1 million.
The company distributed EUR 25.5 million dividend on 29 March 2022 to the only shareholder
Volkswagen Finance Luxemburg S.A.
For the second half of 2022 we expect business volume and net interest result to be on a similar
level as in the first half.
Compliance & Integrity
Acting with Integrity, Compliance and honesty is an essential prerequisite for the success of the
Volkswagen Group. For this reason, compliance with national and international laws and
regulations, internal rules and guidelines and voluntary commitments is among VIF’s most
important principles. The focus of VIF’s compliance organization is on preventing corruption,
breaches of trust and money laundering and thereby reducing the risk of unlawful actions. The
Volkswagen Group’s Code of Conduct is established throughout the Group, and thus also within
VIF. It is the main tool for reinforcing awareness of good conduct, ethical principles and an
integrity culture among the employees and providing them assistance, as well as suitable contacts