Summary of economic position

The Board of Management of Volkswagen AG believes that the Group’s economic position is positive. Alongside our primary business, the initial full-year consolidation of Dr. Ing. h.c. F. Porsche AG in the Volkswagen Group helped us to exceed the previous year’s record sales revenue and operating profit and thus maintain our profitable growth trajectory. We continued to pursue disciplined cost and investment management and the continuous optimization of our processes in the year under review.

In fiscal year 2013, we entered into a control and profit and loss transfer agreement with MAN SE to enable Volkswagen and MAN to strengthen and simplify their cooperation, increasing the competitiveness of both companies.

Volkswagen Group’s capital base was strengthened in the reporting period by the successful issue of a mandatory convertible note with an aggregate principal amount of €1.2 billion in June 2013, which supplemented the mandatory convertible note issued in November 2012, and the placement of dual-tranche hybrid notes with an aggregate principal amount of €2.0 billion in August 2013, which were well received by the market. The Automotive Division’s strong liquidity position at the end of fiscal year 2013 gives us financial stability and flexibility.

An overview of the development of the Volkswagen Group over the past five years can be found in the tables of the Key Financial Figures and in the Five-Year Review. More information on the economic position of the Volkswagen Group by brand and business field can be found in the Divisions chapter.