VOLKSWAGEN INTERNATIONAL FINANCE N.V.
Interim Financial statements
as at 30 June 2022
VOLKSWAGEN INTERNATIONAL FINANCE N.V.
INTERIM FINANCIAL STATEMENTS
2
Table of Contents
Report of the Management Board3
Statement of financial position as at 30 June 20225
Statement of income and comprehensive income
for the period from 1 January to 30 June 20226
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
VOLKSWAGEN INTERNATIONAL FINANCE N.V.
INTERIM FINANCIAL STATEMENTS
4
in case of uncertainty. Next to the Volkswagen Group Code of Conduct, other Group policies and
guidelines on specific compliance issues have been implemented within VIF. Where laws and
regulations have been violated, the Volkswagen Group Whistle blower System is a suitable tool
for taking appropriate actions where misconduct is proven.
The Management Board declares to the best of their knowledge:
1. the financial statements for the first half year of 2022 give a true and fair view of the
assets, the liabilities, the financial position and the results of the Company; and
2. the management report gives a true and fair view of the Company’s situation as at the
balance sheet date, the events that occurred during the first half year of 2022 and the risks
to which the Company is exposed.
Amsterdam, 29 July 2022
………………………………………
Original has been signed by
Christopher R. Norrod, Managing Director
VOLKSWAGEN INTERNATIONAL FINANCE N.V.
INTERIM FINANCIAL STATEMENTS
5
Statement of financial position as at 30 June 2022
(unaudited)
(in thousands of EUR)
30 June 2022 31 December 2021
ASSETS
Non-curre nt as se ts
Property, equipment and right-of-use assets 594 746
Investments in equity instruments
- 367.689
Loans to related parties 29.818.910 27.240.424
Derivative financial instruments 66.976 29.641
Other assets - 10
Deferred tax assets 163.381 137.862
Total non-current assets 30.049.861 27.776.372
Curre nt as s e ts
Loans to related parties 3.033.848 3.321.598
Derivative financial instruments 13 2
Trade and other receivables 151 40
Prepayments - 3.074
Other current assets 246 189
Current tax receivables 5.258 1.347
Cash-pool receivables 682.348 166.078
Total current assets 3.721.864 3.492.328
TOTAL ASSETS 33.771.725 31.268.700
EQUITY AND LIABILITIES
Equity
Issued capital 103.035 103.035
Share premium 12.120 12.120
Retained earnings 332.547 55.481
Other reserves - 195.403
Total equity 447.702 366.039
Non-current liabilitie s
Debts issued and other borrowed funds 30.173.110 27.432.943
Derivative financial instruments 17 32.658
Othe r liabilities 275 408
De fe rred ta x liabilitie s 111.159 117. 755
Total non-current liabilities 30.284.561 27.583.764
Curre nt liabilitie s
Trade and other payables 147 77
Debts issued and other borrowed funds 3.020.487 3.296.571
Derivative financial instruments 8.101 11.376
Contra ct lia bilitie s (deferre d income) 687 -
Othe r curre nt lia bilities 1.220 694
Curre nt tax lia bilitie s - -
Provisions 8.820 10.179
Total current liabilities 3.039.462 3.318.897
TOTAL EQUITY AND LIABILITIES 33.771.725 31.268.700
VOLKSWAGEN INTERNATIONAL FINANCE N.V.
INTERIM FINANCIAL STATEMENTS
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Statement of income and comprehensive income
for the period from 1 January to 30 June 2022
(unaudited)
(in thousands of EUR)
30 June 2022 30 June 2021
Interest revenue calculated using the effective interest method 475.696 478.079
Other interest and similar income 30.046 31.501
Interest expense calculated using the effective interest method (457.343) (458.135)
Other interest and similar expense (32.068) (35.215)
Net interest income 16.331 16.230
Fees and commission income 680 721
Fee and commission expense - -
Ne t fee and commiss ion income 680 721
Change in allow ance for e xpe cted cre dit losse s on fina nc ial a ssets and
loan commitments
(173.491) 28.719
Net gains/(losses) on investments in equity instruments 162.387 24.182
Net gains/(losses) on derivatives 79.263 (34.876)
Net gains/(losses) on financial assets measured at amortized cost (18.274) 82.868
Ne t gains/(losse s) on financia l liabilities me asure d a t a mortized cost 14.079 (50.195)
Other operating income 66 35
Net operating income/(loss) 81.041 67.684
Personnel expenses (985) (1.071)
Depreciation of property, plant and equipment and right-of-use assets (153) (190)
Other operating expenses (894) (417)
Total operating expenses (2.032) (1.678)
Operating profit/(los s) 79.009 66.006
Share of profit of associates and joint ventures - -
Profit/(loss) before tax from continuing operations 79.009 66.006
Income tax expense 28.135 (10.429)
Profit/(loss) after taxation from continuing operations 107.144 55.577
Profit from discontinued operations net of tax - -
Profit/(loss) for the year 107.144 55.577
Othe r comprehe nsive income for the year, net of tax - -
Total compre hensive income/(loss ) for the ye ar 107.144 55.577
Profit attributable to:
Equity holders of the parent 107.144 55.577
Non-c ontrolling intere st - -
Profit for the year 107.144 55.577
Total comprehensive income attributable to:
Equity holders of the parent 107.144 55.577
Non-c ontrolling intere st - -
Total comprehensive income for the year 107.144 55.577