13 Jul - Plantaze a.d. Podgorica

Annual / Quarterly Financial Statement • Oct 21, 2003

DECLARATION OF THE BOARD OF MANAGEMENT

COMISION NACIONAL DEL MERCADO DE VALORES .
11 011, 2003
REGISTRO DE ENTRADA No200 SIDI425

• 82 Declaration of the Board of Management
• 84 Income Statement
• 85 Balance Sheet
• 86 Development of Shareholders' Equity
• Cash Flow Statement 87
• 88 Notes to the Financial Statements

The Board of Management of Volkswagen AG is responsible for drawing up the consolidated financial statements and the Group management report. Reporting is based on International Accounting Standards (IAS) and the interpretations of the Standing Interpretations Committee (SIC). The Group management report was produced in compliance with the regulations set out in the German Commercial Code (HGB). The conditions laid down in Section 292a HGB for exemption from the obligation to draw up consolidated financial statements in accordance with German commercial law are met. Assessment of the conditions is based on German Accounting Standard No. 1 (DRS 1) published by the German Accounting Standards Committee.

The accuracy of the consolidated financial statements and of the Group management report is safeguarded by internal monitoring systems, the implementation of uniform Group-wide directives and by employee education and training measures. Compliance with legal requirements and internal Group directives, and the reliability and functionality of the monitoring systems, is continuously reviewed Group-wide. The early-warning function stipulated by law is implemented by a Group-wide risk management system which enables the Board of Management to identify potential risks at an early stage and initiate appropriate countermeasures where necessary.

82

In accordance with the resolution passed by the Annual General Meeting, the independent auditors PwC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Hanover, have audited the consolidated financial statements and the Group management report, and have issued their unreserved certification as appended to the notes to the financial statements.

The consolidated financial statements, the Group management report, the audit report and the measures to be taken by the Board of Management to ensure early identification of going concern risks have been reviewed in detail by the Supervisory Board in the presence of the auditors. The result of this review is presented in the report of the Supervisory Board.

GERMAN CORPORATE GOVERNANCE CODE

On November 15, 2002 the Board of Management and Supervisory Board of Volkswagen AG issued their declaration of compliance with the "German Corporate Governance Code" as required by Section 161 of the German Corporation Act. The declaration was published for the benefit of the shareholders of Volkswagen AG on its website at "www.volkswagen-ir.de".

On December 9, 2002 the Board of Management and Supervisory Board of AUDI AG likewise issued their declaration of compliance with the German Corporate Governance Code and published it for the benefit of the shareholders on the website "www.audi.de".

INCOME STATEMENT OF THE YOLKSWAGEN GROUP

FOR THE PERIOD FROM JANUARY 1 TO DECEMBER 31, 2002

2018/06/2017 11:12:12 PM 11:10 PM 11:10 PM 11:10 PM 11:12 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 PM 11:10 million €	Note	2002	2001
Sales revenue	(1)	86,948	88,540
Cost of sales		74,188	75,586
Gross profit Automotive Division*		+ 12,760	+ 12,954
Gross profit Financial Services Division*	(2)	+ 1,238	+ 1,328
Distribution costs		7,560	7,554
Administrative expenses		2,155	2,154
Other operating income	(3)	4 137	4,118
Other operating expenses	(4)	3,659	3,268
Operating profit		+4,761	+ 5,424
Share of profits and losses of Group companies accounted for using the equity method	(5a)	+ 534	+ 289
Other income from investments	(5b)	+ 12.	+ 62
Interest result	(6a)	- 478	- 481
Other financial result	(6b)	843	- 885
Financial result		- 775 .	- 1,015
Profit before tax		3,986	+ 4,409
Income tax expense current deferred	(7)	1.389 1,369 20	1,483 1,265 218
Profit after tax	(8)	+ 2,597	+ 2,926
Minority interests	(d)	13	- 11
Net profit attributable to shareholders of Volkswagen AG		+ 2,584	+ 2,915
Earnings per ordinary share (€)	(10)	+ 6.77	+ 7.67
Diluted earnings per ordinary share (€)	(10)	+ 6977	+ 7.62
Earnings per preferred share (€)	(10)	+ 678	+ 7.73
Diluted earnings per preferred share {€)	(10)	+ 6.78	+ 7.68

* The result from operating leases is included in the gross profit of the Automotive Division.

	BALANCE SHEET OF THE VOLKSWAGEN BROUP STORE OF COLLECT COLLECTION OF COLLECTION OF

million €		Note Dec 31, 2002 Dec 31, 2001
Assets
Non-current assets
Intangible assets	(11)	7736	6,596
Tangible assets	(12)	22,842	21,735
Investments in Group companies accounted for using the equity method	(13)	3,397	3,398
Other financial assets	(13)	588	601
		34,563	32,330
Leasing and rental assets	(14)	8,445	7,284
Current assets
Inventories	(15)	10:677	9,945
Financial services receivables	(16)	37512	36,087
Trade receivables	(17)	5,747	5,141
Other receivables and assets	(18)	4,055	3,938
Securities	(19)	3.192	3,610
Cash and cash equivalents	(20)	2.987	4,285
		64,170	63,006
Deferred tax assets	(21)	1,445	1,426
Prepayments and deferred charges	(22)	273	378
Total assets		108,896	104,424
Equity and Liabilities
Capital and reserves	(23)
Subscribed capital		1,089	1,087
Capital reserve		4,451	4,415
Revenue reserves		13,905	14,546
Accumulated profits		5,189	3,947
		24,634	23,995
Minority interests	(24)	57	53
Provisions	(25)	22,349	21,782
Deferred tax liabilities		2,558	2,299
Liabilities
Non-current borrowings	(26)	19,488	12,750
Current borrowings	(26)	26,113	30,044
Trade payables	(27)	7,236	7,055
Other payables	(28)	6,128	6,161
		28,965	56,010
Deferred income	(29)	333	285
Total equity and liabilities		108,896	104,424

financial statements of the volkswagen group

million €	Subscribed capital	Capital reserve	Revenue reserves	of which currency adjustment	of which reserve for cash flow hedges	Accumu- lated profits	Total
at January 1, 2001	1,071	4,296	13,690	- 275	165	2,314	21,371
Capital increase	16	119					135
Net profit for the period						2,926	2,926
Allocation to reserves			821			- 821
Dividend payments						- 465	- 465
Other changes			ਤੇ ਦੇ	136	- 278	- 7	28
at December 31, 2001	1,087	4,415	14,546	- 139	- 113	3,947	23,995
Capital increase	2	રેસ					38
Net profit for the period						2,597	2,597
Allocation to reserves			871			- 871
Dividend payments						- 509	- 509
Other changes			- 1,512	- 1,177	- 76	25	- 1,487
at December 31, 2002	1,089	4,451	13,905	- 1,316	- 189	5,189	24,634

DEVELOPMENT OF SHAREHOLDERS : EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Explanatory notes for capital and reserves are provided in note (23).

CASH FLOW STATEMENT OF THE VOLKSWAGEN GROUP

FOR THE PERIOD FROM JANUARY 1 TO DECEMBER 31, 2002

million €	2002	2001
Cash and cash equivalents at beginning of period	ಿನ 4,285 - CA - -	2,156
Profit before tax	3,986	4,409
Income taxes paid	-1,376	1,362
Depreciation of tangible and intanqible assets	4,898	4,668
Amortization of capitalized development costs	980	917
Depreciation of financial assets*	4	18
Depreciation of leasing and rental assets*	1,418	1,159
Change in provisions	968	620
Loss on disposal of non-current assets	176	60
Share of retained earnings of Group companies accounted for using the equity method	BBC Boo	170
Other expenses/income not affecting cash flow	100	358
Change in inventories	01 - 921	- 597
Change in receivables (excluding financial services)	- 660	- 169
Change in liabilities (excluding borrowings)	1,184	127
Cash flows from operating activities	10,460	10,038
Acquisition of tangible and intangible assets	6,827	6,617
Additions to capitalized development costs	2,460	2,180
Acquisition of subsidiaries and other investments	- 181	- 82
Investments in other financial assets	- 78	- 28
Changes in leasing and rental assets
(excluding depreciation)	- 3,205	3,428
Change in financial services receivables	- 3,649	- 3,396
Proceeds from disposal of non-current assets (excluding leasing and rental assets)	384	540
Cash flows from investing activities	- 16,016	15,191
Net cash flow	- 5,556	5,153
Change in investments in securities	- 232	266
Investing activities including investments
in securities	- 16,248	14,925
Capital contributions	38	135
Dividends paid	209	- 465
Other changes in equity	- 5	- 345
Take-up of bonds	9,285.	4,319
Repayment of bonds	1,598	- 3,232
Change in other borrowings	2,727	6,917
Finance lease payments	= 22	- 27
Change in loans to Group companies	161	319
Cash flows from financing activities	4,623 :	6,983
Cash flows from changes to the scope of consolidation	27 :	29
Cash flows from exchange rate changes	- 160	4
Change in cash and cash equivalents	- 1,298	2,129
Cash and cash equivalents at end of period	2,987	4,285
Cash and cash equivalents	2,987	4,285
Securities and loans	3,837	4,581
Gross liquidity	6,824	8,866
Total third-party borrowings	- 45,602	- 42,794
Net liquidity	- 38.778	- 33.928

* Offset against impairment reversals.

Explanatory notes on cash flow statement are provided in note (30).

NOTES TO THE FINANCIAL STATEMENTS OF THE VOLKSWAGEN GROUP FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2002

GENERAL

Volkswagen AG has published its 2002 consolidated financial statements in accordance with International Accounting Standards (IAS) and the interpretations of the Standing Interpretations Committee (SIC). All mandatory International Accounting Standards were complied with. The previous year's figures are also based on those standards. The financial statements give a true and fair view of the net assets, financial position and earnings performance of the Volkswagen Group.

The consolidated financial statements were drawn up in Euros. Unless otherwise stated, all amounts are quoted in millions of Euros (million €).

The income statement was produced in accordance with the internationally accepted cost of sales method.

Preparation of the consolidated financial statements in accordance with IAS requires assumptions regarding a number of line items that affect the amounts entered in the consolidated balance sheet and income statement as well as the disclosure of contingent assets and liabilities.

The conditions laid down in Section 292a of the German Commercial Code (HGB) for exemption from the obligation to draw up consolidated financial statements in accordance with German commercial law are met. Assessment of the said conditions is based on German Accounting Standard No. 1 (DRS 1) published by the German Accounting Standards Committee. In order to ensure equivalence with consolidated financial statements produced in accordance with German commercial law, all disclosures and explanatory notes required by German commercial law beyond the scope of those required by IAS are published.

accounting, valuation and consolidation methods that differ from the GERMAN COMMERCIAL CODF

• · In accordance with IAS 38, development costs are capitalized as intangible assets provided it is likely that the manufacture of the developed products will be of future economic benefit to the Volkswagen Group.
• · Pension provisions are determined according to the Projected Unit Credit Method as set out in IAS 19, taking account of future salary and pension increases.
• · Provisions for deferred maintenance are not permitted.
• · Medium- and long-term provisions are shown at their present value.
• · Securities are generally recorded at their fair value, even if this exceeds cost, with the corresponding effect in the income statement.
• · Deferred taxes are determined according to the balance sheet liability method. For losses carried forward, deferred tax assets are recognized, provided it is likely that they will be usable.
• · Derivative financial instruments are recognized at their fair value, even if it exceeds cost. Gains and losses arising from the valuation of financial instruments serving to hedge future cash flows are recognized by way of a special reserve in equity. The profit or loss from such contracts is recorded in the income statement on the corresponding due date. In contrast, gains and losses arising from the valuation of derivative financial instruments used to hedge balance sheet items are recorded in the income statement immediately.
• · Treasury shares are offset against capital and reserves.
• · Receivables and payables denominated in foreign currencies are valued at the middle rate on the balance sheet date, and not according to the imparity principle.
• · Minority interests of shareholders from outside the Group are shown separately from capital and reserves.

SCOPE OF CONSOLIDATION

In addition to Volkswagen AG, whose registered office is in Wolfsburg under HRB 1200 (commercial register page), the consolidated Group companies comprise all major companies of which Volkswagen AG is able, directly or indirectly, to control the financial and commercial policies in such a way that the companies of the Group draw benefit from the said companies (subsidiaries). Consolidation begins at the point in time at which control is first possible, and ends when such control is no longer possible.

Subsidiaries whose business is dormant or low in volume, and that are of only minor importance in determining a true picture of the net assets, financial position and earnings performance of the Volkswagen Group, are not consolidated. They are recognized in the consolidated financial statements at the lower of cost or fair value. The total capital and reserves of these subsidiaries amounts to 0.7 % (previous year: 1.0 %) of Group capital and reserves. The total profit after tax of the said companies amounts to 0.1 % (previous year: 0.1 %) of the profit after tax of the Volkswagen Group.

Companies where Volkswagen AG is able, directly or indirectly, to exert significant influence over financial and commercial policy decisions (associates), as well as joint ventures, are accounted for using the equity method. Joint ventures also include companies where the Volkswagen Group holds the majority of voting rights, but for which the articles of association or partnership agreements stipulate that important decisions can only be made on a unanimous voting basis (Minority Protection).

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

	2002	2001
Volkswagen AG and fully consolidated subsidiaries
Germany		34
abroad		122
Subsidiaries carried at cost
Germany		57
abroad		64
Associates and joint ventures
Germany		34
abroad		29
	19:36	340

In the financial year Volkswagen AG acquired all the shares in Södertälje Bil Invest AB, Södertälje, thereby indirectly acquiring the remaining 50 % of the shares of Svenska Volkswagen AB, Södertälje/Sweden, at a purchase price of 95 million €. The acquisition brought the Volkswagen Group cash and cash equivalents totalling 19 million €. With the consent of the European Commission as part of its Merger Control procedure, Svenska Volkswagen AB was consolidated into the Group's financial statements with effect from June 1, 2002.

In 2002 the number of fully consolidated subsidiaries changed because of the first-time consolidation of five German and 16 foreign companies and the disposal of one foreign company. This change has no effect on the comparability of the consolidated financial statements.

The consolidated financial statements also include special securities funds and other special purpose entities whose net assets are attributable to the Group in commercial terms.

The major companies of the Volkswagen Group are listed at the end of the notes to the consolidated financial statements. A list detailing all investments held by the Volkswagen Group is deposited in the Wolfsburg register of companies under HRB 1200 (commercial register page). It can also be obtained direct from Volkswagen AG, Finanz-Analytik und -Publizität, Brieffach 1848-2, 38436 Wolfsburg, Germany.

The following fully consolidated German subsidiaries are exempted by their inclusion in the Group's consolidated financial statements from their obligation to produce financial statements in accordance with Section 264 subsection 3 or Section 264 b of the German Commercial Code (HGB):

• EUROPCAR INTERNATIONAL S.A. und CO. OHG, Hamburg
• VW Wohnungs GmbH & Co. KG, Wolfsburg
• Volkswagen Transport GmbH & Co. OHG, Wolfsburg
• voTEX GmbH, Dreieich
• vw AUDI Vertriebszentrum GmbH & Co. Südbayern KG, Munich
• · VW AUDI Vertriebszentrum Westfalen GmbH & Co. KG, Unna

CONSOLIDATION PRINCIPLES

The assets and liabilities of the German and foreign companies included in the consolidated financial statements are stated in accordance with the uniform accounting and valuation methods used within the Volkswagen Group. In the case of companies accounted for using the equity method, the same accounting and valuation methods are applied to determine the proportionate capital and reserves based on the last audited annual accounts of each company.

In the case of subsidiaries consolidated for the first time, assets and liabilities are valued at their fair value at the time of acquisition. Where the cost of the investment exceeds the Group share of the capital and reserves of the company concerned the goodwill arising is capitalized. Differences between the fair value and book value of the assets and liabilities acquired are depreciated or released with those assets and liabilities. Capitalized goodwill is amortized over its expected useful life using the straight line method.

Receivables and payables, and expenses and income between consolidated companies are eliminated on consolidation. Group inventories and non-current assets are adjusted to take account of interim results. Deferred taxes in respect of consolidation transactions chargeable to the income statement are recognized, with deferred tax assets and liabilities being offset where taxes are levied by the same tax authority and relate to the same tax period.

TRANSLATION OF CURRENCIES

Transactions in foreign currency are translated in the separate financial statements of Volkswagen AG and its consolidated subsidiaries at the rates prevailing on the date when they occur. Foreign currency monetary items are recorded in the balance sheet applying the middle rate on the balance sheet date. Foreign exchange gains and losses are recognized in the income statement.

Companies belonging to the Volkswagen Group outside Germany are qencrally autonomous entities whose annual financial statements are converted into Euros based on the functional currency concept. Asset and liability items are converted at the rate prevailing on the balance sheet date, while capital and reserves are converted at historical rates. The resultant exchange differences are not recorded in the income statement until disposal of the subsidiary concerned, and are shown as separate items in capital and reserves.

Income statement items are converted into Euros at weighted average rates. The rates applied are presented in the following table:

			Balance sheet		Income statement
			Middle rate on Dec 31	Average rate
	1 € =	2002	2001	2002	2001
Argentina	ARS	3.5268	1 4117	79779	0.9400
Australia	AUD	1:8556	1.7290	1.7362	1.7321
Brazil	BRL	3 7050	2.0469	2.7889	2.1054
Great Britain	GBP	0.6505	0.6091	0.62.37	0.6220
Japan	JPV	124 3900	115.6900	118.0613	108.7700
Canada	CAD	1:65:50	1.4101	1.4827	1.3869
Mexico	MXN	10.9589	8.1476	9.1499	8.3661
Poland	PI N	4.0001	3.4963	3.8532	3.6699
Sweden	SEK	9.1528	9.3326	9:1582	9.2528
Switzerland	CHF	1:4524	1.4804	1.4678	1.5105
Slovak Republic	SKK	41.5030	42 7600	42.6779	43.3031
South Africa	ZAR	9.0094	10.4296	9.8992	7.7165
Czech Republic	CZK	31.5770	31.9800	30.8183	34.0603
USA	USD	1.0487	0.8823	0.9448	0.8957
People's Republic of China	CNY	8.6832	7.3026	7.8198	7.4138

ACCOUNTING AND VALUATION PRINCIPLES

INTANGIBLE ASSETS

Intangible assets acquired for a consideration, primarily software, are capitalized at cost and amortized over their three-year useful life using the straight line method. In accordance with IAS 38, research costs are recognized as expenses when incurred.

Development costs for future products and other internally developed intangible assets are capitalized at purchase or production cost, provided the manufacture of the products is likely to bring the Volkswagen Group an economic benefit. If the conditions for capitalization are not met, the expenses are charged to the income statement in the year in which they are incurred.

Purchase or production costs include all costs directly attributable to the development process as well as appropriate portions of development-related overheads. Financing costs are not capitalized. The costs are amortized using the straight line method as from start of production over the scheduled life cycle of the models developed or component units - generally between 5 and 10 years.

Amortization charged during the year has been allocated under the relevant line items in the income statement.

Goodwill arising from consolidation is amortized using the straight line method over its scheduled useful life of between 5 and a maximum of 15 years. Similarly, negative goodwill arising is released over its scheduled useful life.

Amortization of capitalized goodwill is recognized as part of other operating expenses, while release of negative goodwill is included in other operating income.

TANGIBLE ASSETS

Tangible assets are valued at purchase or production cost less depreciation and - where necessary - impairments. Investment grants are generally deducted from cost. Cost is determined on the basis of the direct costs as well as proportionate material and production overheads, including depreciation. The cost of repairs and interest on borrowings are recorded as current expenses. Tangible assets are depreciated using the straight line method over their scheduled useful life.

Depreciation is based mainly on the following useful lives:

USEFUL ECONOMIC LIVES --------------------------------------------------------------------------------------------------------------------------------------------------------

	Useful life
Buildings	25 to 50 years
Site improvements	10 to 18 years
lechnical equipment and machinery	6 to 12 years
Other equipment, factory and office equipment, including special tools	3 to 15 years

Impairment of tangible assets is recognized in accordance with IAS 36, when the net selling price and value in use of the asset concerned have fallen below the carrying amount. If the reasons for impairments carried out in previous years no longer apply, the impairments are reversed accordingly.

In relation to the use of leased tangible assets, the conditions for classification as a finance lease as set out in IAS 17 are met if all major risks and rewards associated with ownership have been transferred to the Group company concerned. In such cases the tangible assets concerned are capitalized at purchase or production cost or at the present value of the minimum lease payments (if lower) and depreciated using the straight line method according to the asset's useful life, or over the term of the lease if this is shorter. The payment obligations arising from the future lease instalments are discounted and recorded as a liability on the balance sheet.

Where consolidated companies are the lessees of assets under operating leases, lease instalments and rental payments are recorded directly as expenses in the income statement.

FINANCIAI INSTRUMENTS

Financial instruments are contracts that give rise to a financial asset in one company and a financial liability or in an equity instrument in another. The regular purchase or sale of financial instruments is accounted for on the settlement date - that is, on the date on which the asset is delivered.

IAS 39 subdivides financial assets into the following categories: financial asset or liability held for trading purposes; held-to-maturity investments; loans and receivables originated by the enterprise; and available-for-sale financial assets.

• In the Volkswagen Group financial instruments are classified as loans and receivables originated by the enterprise, available-for-sale financial assets or held-to-maturity investments.
• · Certain hedging instruments used by the Volkswagen Group on the basis of commercial criteria to hedge against interest or exchange rate changes, but not meeting the strict criteria of IAS 39, are classified as financial assets or liabilities held for trading purposes in IAS 39 terms. They include interest limiting instruments, options or portfolio hedges. If external interest rate hedges subsequently eliminated in the consolidated financial statements are entered into in respect of loans between Group

companies, such financial instruments are also assigned to this category. Financial instruments are accounted for in the balance sheet at amortized cost or at fair value.

The amortized cost of a financial asset or liability is the amount

• · at which a financial asset or liability is valued when first recognized
• · minus any repayments
• minus any write-down for impairment or uncollectability
• · plus or minus the cumulative spread of any difference between the original amount and the amount repayable at maturity (premium),
  • distributed using the effective interest method rather than the straight line method over the term of the financial asset or liability.

In relation to short-term receivables and payables, the amortized costs generally correspond to the nominal or repayment amount.

The fair value generally corresponds to the market value. If no active market exists, the fair value is determined using financial mathematics methods, such as by discounting the future cash flows at the market interest rate or using recognized option price models, and checked by confirmations from the banks that handle the transactions.

PRIMARY FINANCIAL INSTRUMENTS

Loans granted and receivables and liabilities as well as held-to-maturity investments are valued at amortized cost, unless connected with hedge instruments. These include in particular:

• loans and securities,
• · receivables from financing business,
• · trade receivables and payables,
• · short-term other receivables and assets and liabilities, and
• · short- and long-term financial liabilities.

Available-for-sale financial assets are recognized at fair value. These represent both non-current and current asset securities. Changes in the fair value are reflected in the income statement.

Shares in subsidiaries and other investments are also classified as available-for-sale financial assets. They are, however, generally shown at cost, since for those companies no active market exists and fair values cannot be reliably ascertained without unreasonable commitment of time and expense. Fair values are recognized if there are indicators that the fair value is less than cost.

derivative financial instruments/hedge accounting

Volkswagen Group companies deploy derivative financial instruments to hedge balance sheet items and future cash flows.

In the case of hedging against the risk of change in value of balance sheet items (fair value hedges), both the hedge transaction and the hedged risk portion of the underlying transaction are recognized at fair value. Valuation changes are recorded in the income statement.

In the case of hedging of future cash flows (cash flow hedges), the hedge instruments are also valued at fair value. Changes in valuation are initially recognized in a special reserve and not recorded in the income statement, and are only recorded in the income statement later when the cash flow occurs.

LEASING AND RENTAL ASSETS

Vehicles leased out under operating leases are capitalized at purchase or production cost and depreciated using the straight line method over the term of the lease down to their estimated residual value.

Real estate and buildings held in order to obtain rental income (investment property) are recognized at amortized cost, with useful lives in keeping with those of the tangible assets used by the Company itself.

95

INVENTORIES

Under inventories, raw material and supplies, merchandize and work in progress and self-produced finished goods are valued at purchase or production cost. Production cost includes the direct costs and an appropriate apportionment of the necessary material and production overheads, as well as production-related depreciation directly attributable to the production process. Administrative expenses are recognized to the extent that they are attributable to production. Interest on borrowings is not capitalized. Inventories are valued at net realizable value where this is lower than cost at the balance sheet date. The valuation of homogcnous inventories is derived using the weighted average cost method.

RECEIVABLES FROM FINANCE LEASES

As a lessor - generally of vehicles - in the case of finance leases, i.e. where essentially all risks and rewards in connection with ownership are transferred to the lessee, a receivable in the amount of the net investment in the lease is recognized.

OTHER RECEIVABLES AND ASSETS

Other receivables and assets are recognized at cost less any impairments. Discernible specific risks and general credit risks are taken into account by means of appropriate value adjustments.

DEFERRED TAXES

Deferred taxes arise from all temporary differences between the values recognized for tax purposes and those on the consolidated balance sheet. Deferred taxes from losses carried forward are also recognized, provided it is likely that they will be usable.

Deferred tax liabilities and assets are made in the amount of the expected tax burden or tax relief, as appropriate, over the following financial years, based on the rate of tax applicable at the time of realization. Tax consequences of dividend payments are not taken into account until the resolution on appropriation of earnings available for distribution is passed.

Where income of subsidiaries is free of tax because of specific local tax provisions, and the taxation effects when the period of temporary tax relief ends are not foreseeable, no deferred taxes are recognized.

Deferred tax assets that are unlikely to be realized are subject to value adjustments.

Deferred tax assets and deferred tax liabilities are offset where taxes are levied by the same taxation authority and relate to the same tax period.

pension provisions

Actuarial valuation of pension provisions is based on the Projected Unit Credit Method in respect of post-employment benefits in accordance with IAS 19. The valuation is not only based on pension payments as known at the balance sheet date, but also includes future increases in salary and pensions.

PROVISIONS FOR TAXES

Tax provisions include obligations resulting from current taxes on income. Deferred taxes are shown in separate items of the balance sheet and income statement.

OTHER PROVISIONS

In accordance with IAS 37, provisions are created where a present obligation exists to third parties as a result of a past event; where a future outflow of resources is probable; and where a reliable estimate of that outflow can be made.

Provisions are made for warranty claims in accordance with IAS 37 based on losses to date and estimated future losses in respect of vehicles sold

Provisions for distribution costs include discounts, bonuses and the like, to be paid after the balance sheet date, for which there is a legal or constructive obligation caused by sales made before the balance sheet date.

Provisions for personnel costs are mainly made for long-service awards, time credits, the part-time scheme for employees near to retirement, severance payments and similar obligations.

Other provisions are likewise made in accordance with IAS 37 corresponding to all discernible risks and uncertain obligations considering the probability of them occurring, and not offset against claims for recourse.

Provisions not resulting in an outflow of resources in the immediate year following are recognized at their settlement value discounted as per the balance sheet date. Discounting is based on market interest rates. The settlement value also includes the cost increases to be taken into account on the balance sheet date.

LIABILITIES

Short-term liabilities are recognized at their repayment or settlement value. Long-term liabilities are recorded on the balance sheet at amortized cost. Differences between historical cost and the repayment amount are taken into account by means of the effective interest method.

Liabilities from finance leases are shown at the present value of the leasing instalments.

REALIZATION OF INCOME AND EXPENSES

Sales revenue and other operating income are recognized only when the relevant service has been rendered or the goods delivered, i.e. when the risk has been transferred to the customer.

Income from assets for which a Group company has a buy-back obligation are only realized when the assets have definitively left the Group. Up to that point they are recognized in the balance sheet under inventories.

Cost of sales includes the costs incurred to generate the sales revenues and the cost of goods purchased for resale. This item also includes the costs of creating warranty provisions.

Research and development costs not cligible for capitalization in the period are likewise shown under cost of sales.

Distribution costs include personnel and material costs and depreciation applicable to the sales function, as well as the costs of shipping, advertising, sales promotion, market research and customer service.

Administrative expenses include personnel costs and overheads as well as the depreciation applicable to administrative functions.

Government grants are generally deducted from the cost of the relevant assets.

No personnel expenditure is recognized in respect of the issue of convertible bonds to employees with the right to purchase shares in Volkswagen AG.

Other taxes (204 million €, previous year: 240 million €) are allocated to the appropriate line items in the income statement.

Dividend income is generally recognized on the date on which the dividend is legally approved.

and the for the first for the Main of Main of the research and	1 Automotive		Financial Services	Consolidation		Volkswagen Group
million €	2002	2001	2002	2001	2002	2001	2002	2001
	3 503	80.072	9:445	8,468				88,540
Sales to third parties				106	484	- 469
Inter-segment sales	47.6	363	A		484	- 469	86,948	88,540
Segment sales	77.973	80,435	9 459	8,574		266		3,456
Finance revenue	2.22	23	3,845	3,699	23.0		90,237	91,996
Segment revenue	77,997	80,458	13,104	12,273	864	- 735
Operating profit	3,875	4,625	721	552	1 85	247	47,61	5,424
Share of profits and losses of Group companies accounted for using the equity method	3818	294		5			534	289
Cash flows from		8.036	2,235	2,573	160	571	10,460	10,038
operating activities	8,065			45,944	- 6,998	13,610	103,465	98,999
Segment assets	61,726	66,665	48 48 67
Investments in Group companies accounted for using the equity method	3,354	3,377	43	21			3,397	3,398
Segment liabilities	44,740	50,801	44,153	41,070	- 8,663	15,160	80,230	76,711
Investments in tangible and other intangible assets	6,730	6,529	97	88			6,827	6,617
Capitalized development costs	2 460	2,180					2,460	2,180
Investments in leasing and rental assets		8	6,908	6,937			6,911	6,945
Cash flows from investing activities according to cash flow statement	9,121	7,763	6.798	7.034	97	394	16.016	15,191

SEGMENTAL REPORTING BY DIVISION WARRANT A 20

					SEGMENTAL REPORTING BY MARKET 2002 CHARLES CONSTITUTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULT
	Germany	Rest of Europe	North America	South America	Africa	Asia/ Oceania	Conso- lidation	Total
million €				3.333	951	5,148	0	86.948
Sales to third parties	23,874	36,365	17,277
Investments in tangible	4.555	1.794	327	250	62	27	— 188	6,827
and other intangible assets			18,896	3,338	351	2,111	- 11.961	103,465
Segment assets	57.657	33,073

	and the contraction of the county of the country of the comments of the comments of
STANDET STATES THE BY MARVET 2001 SE START FOR STORE FOR STORE OF	and and the comments of the states of the states

SEGMENTAL REPORTERS OF GROUPS AND EN LEASTER
	Germany	Rest of Europe	North America	South America	Africa	Asia/ Oceania	Conso- lidation	Total
million €					1,060 1,060	4,736 - 4,736		88,540
Sales to third parties			24,484	4.565
Investments in tangible			2.146	466	531	28	44	ﮯ	6,617
and other intangible assets	3.402						306
Segment assets	54.041	30.842	18.407	5.339

The internal organizational and management structure and the internal reporting procedures to the Board of Management and the Supervisory Board form the basis for determining the primary format of segmental reporting within the Volkswagen Group, with the two divisions: Automotive reporting with and other companies are assigned to ther companies are assigned to the and I manelia. The secondary reporting format is geographically based.

Business transactions between the companies within the segments of the . . Business trimbating as a matter of principle, based on the same prices as are agreed with third parties.

notes to the consolidated INCOME STATEMENT

(1) sales revenue

SALES REVENUE OF THE GROUP BY BUSINESS LINE
million €	2002	2001
Volkswagen passenger cars	34,813	37,729
Audi	17,558	17,471
SEAT passenger cars	4,766	4,749
Skoda passenger cars	4,432	4,339
Rolls-Royce/Bentley	234	375
Other passenger cars	809	933
Total passenger cars	62,612	65,596
Commercial vehicles	4,296	4,633
Genuine parts	5,829	5,472
Rental and leasing business	9,431	8,454
EDP services	167	193
Other sales	4,613	4,192
	86,948	88,540

For segmental reporting, the sales revenue of the Group is presented by division and market.

(2) gross profit financial services division

million €	2002	2001
Interest income from dealer financing	419	499
of which from subsidiaries		2
Interest income from customer financing	1,588	1,475
Interest income from direct banking business	17.	16
Other interest and similar income	77	87
of which from subsidiaries		13
Income from finance leases	962	1,122
Income from fixed-interest securities/loans	0.
Interest expenses from direct banking business	167	156
Other interest and similar expenses	1,652	1,716
of which to subsidiaries	10
	1,238	1,328

(3) other operating income

million €	2002	2001
Reversal of value adjustments to receivables and other assets	246	200
Reversal of provisions, accruals and liabilities		634
Income from realized foreign currency hedging derivatives		308
Foreign exchange gains	3 21	790
Income from sale of promotional material	273	210
Income from rebilling	1501	ਦੇ ਹੋ ਦ
Insurance broking commissions		174
Other income from the Financial Services Division		વેર
Income from investment property		68
Income from the release of negative goodwill
Other operating income		1,043
		4,118

Foreign exchange gains mainly comprise gains from changes in exchange rates between the dates of recognition and payment of receivables and liabilities denominated in foreign currencies as well as exchange rate gains resulting from valuation at the rate prevailing on the balance sheet date. Foreign exchange losses from these items are shown under other operating expenses.

(4) other operating expenses

AND AND SECTION CONSULTION CONSULTION CONTRACTION CONTRACTION CONTRACT CONTRACT CONTRACT CONTRACT CONTRACT CONTRACT CONTRACT CONTRACT CARAL CONTRACT CARAL CONTACT CASTARD CON 2002 2001 million € 143 126 Amortization of goodwill

1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Value adjustments against receivables and other assets	806	629
Realized losses from derivative currency hedging instruments	157	234
Foreign exchange losses	972	821
Expenses from rebilling	164	161
Provision created because of the EU End of Life Vehicles Directive		83
Other operating expenses	1.417	1.214
	3,659	3,268

(5a) share of profits and losses of Group Companies accounted for using the equity method

million €	2002	2001
Share of profits of Group companies accounted for using the equity method	631	413
of which from joint ventures	571	380
associates	60	33
Share of losses of Group companies accounted for using the equity method	97	124
of which from joint ventures		27
associates	93.	97
	534	289

(5b) other income from investments

million €	2002	2001
Income from result transfer agreements		41
Expenses from result transfer agreements		୧୮
Other income from investments		90
of which from subsidiaries		17
other investments		73
Other expenses from investments		A
of which from subsidiaries
other investments
		62

Income and expenses from result transfer agreements relate exclusively to subsidiaries.

(6a) interest result

million €	2002	2001
Income from securities and loans	128	173
of which from subsidiaries		4
Other interest and similar income	3900	460
Other interest and similar expenses	608	901
Income from valuation at fair value of ineffective hedging derivative financial instruments		26
Income from valuation at fair value of hedged assets and liabilities	1 800	122
Expenses from valuation at fair value of ineffective hedging derivative financial instruments		106
Expenses from valuation at fair value of hedged assets and liabilities	୧୦୪	201
Interest charge included in leasing instalments		4
	- 478	- 487

Income and expenses from hedged items and the related hedging derivative financial instruments, in the sense of IAS 39, are recorded net under expenses and income from the valuation at fair value of incffective hedging derivative financial instruments.

(6b) OTHER FINANCIAL RESULT

million €	2002	2001
Accumulation of pension provisions	- 68	- 689
Accumulation of other provisions	- 162	- 196
	- 843	- 885

(7) income tax expense

COMPONENTS OF TAX EXPENDITURE
million €	2002	2001
Current tax expenditure, Germany		990
Current tax expenditure, abroad		485
Current tax expenditure		1,475
of which prior period
Income from reversal of tax provisions	- 1-59	- 210
Current taxes on income	1-369	1,265
Deferred tax expenditure, Germany		82
Deferred tax income/expenditure, abroad		136
Deferred tax expenditure		218
Income tax expense	12.12	1,483

Current and deferred domestic taxes were valued at a tax rate of 38.3 % (previous year: 38.3 %), derived from corporation tax at 25 %, the 'solidarity surcharge' in connection with German reunification costs at 5.5 %, and the average state trade earnings tax applicable throughout the Group. In Germany, following the passing of the law relating to the reduction of tax rates and reform of business taxation, income from German investments and profits from the sale of investments in German corporations is not usually subject to tax as from January 1, 2002.

The statutory corporation tax rate for the 2003 tax year was increased to 26.5 % (plus the 5.5 % 'solidarity surcharge') because of the legislation relating to solidarity with flood victims enacted on September 21, 2002. Consequently, deferred taxes of German Group companies reversing in the financial year 2003 are valued as per December 31, 2002 at a tax rate of 39.66 % (including state trade tax). This resulted in deferred tax expenditure in the financial year 2002 of 10 million €. The local income tax rates applied for companies outside Germany vary between 10 and 41 %. In the case of split tax rates, the tax rate applicable to undistributed profits is applied.

The realization of tax relief in respect of losses carried forward from previous years resulted in a reduction in current taxes on income of 96 million € (previous year: 110 million €) in 2002.

Previously unused losses carried forward amounted to 2,197 million € (previous year: 1,307 million €). Losses carried forward amounting to 1,766 million € (previous year: 848 million €) can be used over an unlimited period of time, while 431 million € (previous year: 459 million €) must be used within the next 10 years. It was estimated that losses carried forward of 138 million € (previous year: 141 million €) will not be usable.

The increase in unused losses carried forward results primarily from the use of special depreciation for tax reasons in the USA.

Deferred tax income resulting from changes in tax rates totalled 3 million € (previous year: income amounting to 0.5 million €).

65 million € (previous year: 40 million €) of the deferred tax balance recorded on the balance sheet relate to transactions which directly increased capital and reserves.

The proposed dividend for the financial year 2002 will entail income tax consequences totalling 75 million € (previous year: 92 million €).

If taxed and untaxed components of capital and reserves were to be fully distributed as dividends, there would be a claim for corporate income tax reduction of 1,101 million € (previous year: 1,173 million €) not recorded on the balance sheet.

The following deferred tax assets and liabilities recorded on the balance sheet are attributable to differences in recognition and valuation of the various balance sheet items concerned and to tax losses carried forward:

million €	Deferred tax assets	Deferred tax liabilities Dec 31, 2002	Deferred tax assets	Deferred tax liabilities Dec 31, 2001
Intangible assets	53	2,523	77	2,084
Tangible assets and leasing and rental assets	3472	2,512	3,642	1,875
Financial assets	171	76	63	13
Inventories	152	328	178	337
Receivables and other assets (including Financial Services Division)	259	3,460	254	3,805
Other current assets	178		97
Pension provisions	957		953
Other provisions	1,604	8	1.307	67
I iabilities	637	351	791	365
Tax losses carried forward	777		365
Value adjustments aqainst deferred tax assets	- 108		- 119
Gross value	8,096	9,262	7,608	8,553
of which long-term	5,566	6,689	5,192	6.086
Offset	7,089	7.089	6,474	6,474
Consolidation	438	385	292	220
Balance sheet amount	1,445	2,558	1,426	2,299

IAS 12 stipulates that deferred tax assets and liabilities should be offset if, and only if, they relate to income taxes levied by the same taxation authority and relate to the same tax period.

The tax expenditure shown for the year 2002 of 1,389 million € (previous year: 1,483 million €) was 138 million € (previous year: 206 million €) less than the expected tax expenditure of 1,527 million € which would have resulted from application of a tax rate applicable to undistributed profits of 38.3 % to the profit before tax of the Group.

TO INCOME TAX EXPENSE RECOUNIZED
million €	2002	2001
Profit before tax		4.409
Expected income tax expense (tax rate 38.3 %)		1,6889
Reconciliation:
Effect of different tax rates outside Germany		- 195
Proportion of expected taxation relating to:
income not subject to tax		- 87
expenses not deductible for tax purposes	22:30 C	194
temporary differences and losses for which no deferred taxes were recognized		- 102
Tax credits		- 105
Prior-period current tax expense		1
Effect of tax rate changes		1
Other taxation effects		87
Income tax expense recognized	1339	1,483
Effective tax rate (%)		33.6

RECONCILIATION OF EXPECTED INCOME TAX EXPENSE

(8) profit after tax

Income in the amount of 1,231 million € (previous year: 1,195 million €) and expenses in the amount of 1,007 million € (previous year: 543 million €) are attributable to other financial years. The income is mainly included in other operating income, and relates primarily to income from the reversal of provisions and of receivables value adjustments as well as from tax refunds. The out-of-period expenses are for the most part included in cost of sales.

(9) minority interests

million €	2002	2001
Share of subsidiaries' profits due to minority interests
Share of subsidiaries' losses applicable to minority interests
		17

The profits due to minority shareholders are attributable primarily to shareholders in VW Versicherungsvermittlungs-GmbH, vw AUDI Vertriebszentrum GmbH & Co. Südbayern KG, AUDI SENNA Ltda. and ŠKODA AUTO Polska S.A.

(10) earnings per share

The undiluted earnings per share are calculated by dividing the share in profit of the shareholders of Volkswagen AG by the weighted average number of ordinary and preferred shares traded in the course of the financial year. A dilution of the earnings per share results from so-called potential shares. These include option rights that, however, only dilute earnings when they result in issue of shares at a value below the average market price of the share. The conversion rights from the second tranche of the share option plan and non-exercised option rights by the holders of the option bond issued in 1986 had a diluting effect in 2001. By contrast, there was no dilution in the financial year 2002. The reasons for this were the expiry of the option bond on August 1, 2001 and a fall in the share price. Consequently, at an average in the past financial year of 48.03 € (previous year: 51.93 €), the price of the VW ordinary share was just below the increased conversion price of 48.09 € for the exercise of conversion rights from the second tranche of the share option plan.

	Ordinary 2002	Preferred 20072	Ordinary 2001	Preferred 2001
shares
Weighted average number of shares outstanding - undiluted			274,089,067	105,238,280
Potential ordinary shares with a diluting effect
share option plan			845,288
option bonds			1,868,854
Weighted average number of shares outstanding - diluted			276,803,209	105,238,280

million €	2002	2001
Profit after tax		2,926
Minority interests		11
Net profit attributable to shareholders of Volkswagen AG		2,915
Undiluted earnings
of which relating to - ordinary share	1.870	2,102
- preferred share		813
Diluted earnings
of which relating to - ordinary share	137.02	2,107
- preferred share		808

6	2002	2001
Earnings per share - undiluted
Ordinary share		7.67
Preferred share		7.73
Earnings per share - diluted
Ordinary share		7.62
Preferred share		7.68

NOTES TO THE BALANCE SHEET

(11) Intangible assets

million €	Concessions, industrial and similar rights and licences in such rights	Goodwill/ negative goodwill	Capitalized costs for products in develop- ment	Capitalized develop- ment costs for products currently in use	Other intangible assets	Payments on account	Total
Purchase/production cost at January 1, 2002	40	1,396	2,546	6,048	739	180	10,949
Exchange differences	— 4	- 1	- 63	- 71	- 27	0	- 166
Group changes	2		17		2		21
Additions	5	- 20	1,979	481	223	30	2,698
Transfers	1	4	1,317	1,313	150	- 199	- 50
Disposals	1		76	663	81	1	822
at December 31, 2002	41	1,379	3,086	7,108	1,006	10	12,630
Amortization at January 1, 2002	28	942		2,910	473		4,353
Exchange differences	3	- 1		- 41	— 17		- 62
Group changes	0				1		1
Amortization charge	4	131		669	150		1,254
Impairments		13		11	1		25
Transfers	2 -	2		0	0		0
Disposals	0			598	79		677
Reversal of impairments
at December 31, 2002	27	1,087		3,251	529		4,894
Net book amount at December 31, 2002	14	292	3,086	3,857	477	10	7,736
Net book amount at December 31, 2001	12	454	2,546	3,138	266	180	6,596

The additions to goodwill include negative goodwill of 37 million € scheduled to be released pro rata over a period of five years. A pro-rate release of 4 million € was made for 2002.

Of the total research and development costs incurred in 2002, an amount of 2,460 million € met the criteria for capitalization as stipulated by IAS.

The following amounts were charged to cost of sales:

million €	2002	2001
Research and non-capitalized development costs	1.911	1,743
Amortization of development costs	980	917
Research and development costs charged to the
income statement	2,891	2,660

(12) tangible assets

million €	Land, land rights and buildings includinq buildings on land owned by others	Technical equipment and machinery	Other equipment and factory and office equipment	Payments on account and assets in the course of con- struction	Total
Purchase/production cost
at January 1, 2002	11,728	20,106	21,920	3,544	57,298
Exchange differences	- 389	- 777	- 844	- 81	- 2,091
Group changes	୧3	0	17	1	81
Additions	591	1,406	2,912	1,839	6,748
Transfers	500	1,291	1,008	2.740	ਟੇਰੇ
Disposals	191	976	912	88	2,167
at December 31, 2002	12,302	21,050	24,101	2,475	59,928
Depreciation at January 1, 2002	5,254	13,966	16,343		35,563
Exchange differences	- 150	- 497	- 567		- 1,214
Group changes	9	0	10		19
Depreciation charge	421	1,595	2,431		4,447
Impairments	3	34	114		151
Transfers	10	- 1	2		11
Disposals	122	930	839	0	1,891
Reversal of impairments
at December 31, 2002	5,425	14,167	17.494	0	37,086
Net book amount at December 31, 2002	6,877	6,883	6,607	2,475	22,842
Net book amount at December 31, 2001	6,474	6,140	5.577	3,544	21,735
of which assets leased under finance lease contracts
Book amount at December 31, 2002	153		45		198
Book amount at December 31, 2001	75		20		95

Options to purchase buildings and plant leased under the terms of finance leases usually exist, and are normally exercised. Interest rates on the leases vary between 4.9 and 9.0 %, according to the market and the respective agreement start dates. The future finance lease payments due, and their present values, are shown in the following table:

million €		2003 2004-2007		Total
Finance lease payments	74	100	174	348
Interest element of finance lease payments		31	73	107
Present value of finance lease payments	77	રત	101	241

For assets leased under operating leases, payments reflected in the income statement totalling 229 million € (previous year: 248 million €) were made in the current year.

(13) Investments in group companies accounted for using the equity method and other financial assets

		Shares in			Loans to		Long-term	Total
million €	Group companies accounted for using the equity method	subsi- diaries	other invest- ments	subsi- diaries	joint ventures, associates and other invest- ments	other third parties	securities
Cost
at January 1, 2002	3,618	196	140	84	31	250	5	4,324
Exchange differences	- 74	- 5	0	0		- 2	2 -	- 83
Group changes	1	45	1	0	2	0	3	52
Additions	543	81	0	18	0	59	1	702
Transfers	- 1	2						1
Disposals	379	56	0	78	3	48	3	567
Reversal of impairments				0	- 1		-	- 1
at December 31, 2002	3,708	263	141	24	29	259	4	4,428
Depreciation at January 1, 2002	220	ਤੇ ਰੇ	58	0	-	6	2	325
Exchange differences	0	- 1	0		0	0	1 -	- 2
Group changes		29	1		-	0		30
Depreciation charge	87							87
Impairments	4	2	0		1	2	0	9
Transfers	0	0						0
Disposals	0					1	0	1
Reversal of impairments		5				0		5
at December 31, 2002	311	64	59	0	1	7	1	443
Net book amount at December 31, 2002	3,397	199	82	24	28	252	3	3,985
Net book amount at December 31, 2001	3,398	157	82	84	31	244	3	3,999
Fair value at December 31, 2002				24	28	252	3
Fair value at December 31, 2001				83	31	243	2

The shares in companies accounted for using the equity method include joint ventures in the amount of 1,873 million € (previous year: 1,808 million €).

Of the loans to joint ventures, associates and other investments, 7 million € (previous year: 7 million €) relate to loans to joint ventures, subject to interest rates of up to 4.5 % (previous year: 4.5 %).

The major joint ventures and associates are dctailed in the listing of major Group companies at the end of the notes to the consolidated financial statements.

The loans to subsidiaries have terms of between 5 and 8 years and are subject to interest rates of between 4.3 and 5.3 %, corresponding to the market rates at the date of issue of the respective loan.

The loans to third parties are subject to fixed interest rates up to 6.0 %.

(14) leasing and rental assets

million €	Movable assets	Invest- ment property	Total
Purchase/production cost at January 1, 2002	8,476	539	9,015
Exchange differences	1,222	- 17	- 1,239
Group changes	756	20	776
Additions	6,840	71	6,911
Transfers	0	- 10	- 10
Disposals	4,972	2	4,974
at December 31, 2002	9,878	601	10,479
Depreciation at January 1, 2002	1,583	148	1,731
Exchange differences	- 255	- 1	- 256
Group changes	343	4	347
Depreciation charge	1,278	11	1,289
Impairments	131	2	133
Transfers	0	- 11	- 11
Disposals	1,194	1	1,195
Reversal of impairments	4		4
at December 31, 2002	1,882	152	2,034
Net book amount at December 31, 2002	7,996	449	8,445
Net book amount at December 31, 2001	6,893	391	7,284

Assets leased out under the terms of operating leases and investment property are recorded under leasing and rental assets, in accordance with IAS 40.

Investment property includes leased dealerships and apartments rented out, with a fair value of 839 million €. Operating costs totalling 54 million € were incurred for the maintenance of investment property in use. Expenses of 1 million € were incurred for unused investment property.

The following payments from non-cancellable leases and rental agreements are expected to be received over the coming years:

.: the contract and the county of		And Children Children Children Children
million € 11 11 1 1 1 8 8 15 11 11 1 11 1 11 1 11 1 11	2003 2004-2007	Total
	1 548	2.760

(15) inventories

million €	Dec 31, 2002 Dec 31, 2001
Raw materials and supplies		1,852
Work in progress
Finished goods and purchased merchandize	123920	1,269
Payments on account		6,818
		6
	10.677	O OVE

Of the total inventories, 1,377 million € is recognized at net realizable value (since this is lower than cost). The value adjustment relative to the gross value totalled 224 million €.

(16) financial services receivables

million €	within one year	Falling due after	Book value	Fair value one year Dec 31, 2002 Dec 31, 2002	within one year	Falling due after	Book value	Fair value
Receivables from financing business							one year Dec 31, 2001 Dec 31, 2001
customer financing	7.074	13,266	20,340	20,538	6,548	11,857
dealer financing	6,390	490	6,880	6,882	6,521	538	18,405 7,059	18,461
direct banking	28		28	28	22		22	7,058 22
	13,492	13,756	27,248	27,448	13,091	12,395	25,486	25,541
Other receivables due from operating lease business	196		196	197	281
Receivables from							281	281
finance leases	4,229	5,839	10,068	10,076	4,147	6,173	10,320	10,516
	17,917	19,595	37,512	37721	17,519	18,568	36.087	36 338

Long-term receivables from customer financing business are subject to mainly fixed interest rates of between 0.13 and 18.6 %, depending on the respective market. They have terms of up to 72 months. The long-term portion of dealer financing is provided at interest rates of between 3.0 and 11.0 %, depending on country.

The receivables from customer and dealer financing are secured on vehicles or real estate according to group policy.

The receivables from dealer financing include an amount of 22 million € (previous year: 28 million €) receivable from subsidiaries.

Receivables from financial services agreements pledged against assetbacked securities are detailed in note (26) relating to current and non-current borrowings.

The receivables from finance leases – almost entirely in respect of vehicles – are expected to generate the following cash flows:

million €	2003	2004-2007	from 2008	Total
Future payments receivable from finance leases	4,718	6,451	2	11.171
Unearned finance income from finance leases (discounting)	489	614	0	1,103
Book value of receivables from finance leases	4.229	5,837	2	10.068
Present value of unguaranteed residual values	747	366		608
Present value of minimum lease payments outstanding at the balance sheet date	3,987	5,471	2	9,460

Lease calculations are prepared on the basis of country-specific market interest rates of between 7 and 25 %.

Outstanding finance lease receivables are subject to value adjustments of 205 million €.

(17) TRADE RECEIVABLES

million €	within one year	Falling due after	Book value one year Dec 31, 2002	within one year	Falling due after	Book value one year Dec 31, 2001
Trade receivables due from
third parties	5,112	73	5,185	4,757	57	4,814
subsidiaries	219		221	117	3	120
joint ventures	260	O	260	144		144
associates	77	0		55		ਵੇਵ
other companies in which an investment is held	4			8		8
	5 477	75	5775	5.021	డిగి	5.141

The fair values of the trade receivables correspond to the book values. Value adjustments totalling 139 million € (previous year: 119 million €) were made.

		(18) OTHER RECEIVABLES AND ASSETS
--	--	-----------------------------------	--	--

million €	within one year	Falling due after	Book value one year Dec 31, 2002 Dec 31, 2002	Fair value	within	Falling due after	Book value	Fair value
Other receivables due from					one year		one year Dec 31, 2001 Dec 31,2001
subsidiaries	88	6	34	22
ioint ventures	493	25	518		452	18	470	471
associates	17			518	154	315	469	467
other companies in which an investment is held	1		1977	17	8		8	8
Claims for refund of income taxes	213				11		11	11
Other claims in respect of taxes	1,113			218	159		159	159
Positive fair values of derivative financial instruments	337	80 309	1,193	1,193	1,155	103	1,258	1,258
Other assets	805		646	5 646.	102	154	256	256
		568	1,375	13873	735	572	1,307	1,307
	3,067	988	4,055	4,053	2,776	1,162	3,938	3.937

Other assets include plan assets for the financing of post-employment benefits in the amount of 98 million € (previous year: 137 million €).

No material restrictions of title or right of use exist in respect of other receivables and assets. Risk of loss was covered by means of value adjustments. A total of 287 million € (previous year: 289 million €) in value ad
adinate adjustments was recognized.

Short-term other receivables are predominantly non-interest-bearing. The derivative financial instruments have the following positive fair values:

million €		Dec 31, 2002 Dec 31, 2001
Transactions for hedging against
exchange risk from assets through fair value hedges
exchange risk from liabilities	ಸಿರ	16
through fair value hedges	26	27
interest risk through fair value hedges	358	164
interest risk through cash flow hedges		2
exchange risk from future cash flows (cash flow hedges)
Hedging transactions	115	43
	રેક્ષેર	252
Assets arising from ineffective hedging derivatives	60	1
	646	256

Further details on derivative financial instruments as a whole are given in note (31) Financial instruments.

(19) securities

The securities serve to safeguard liquidity. Securities classified as current assets are quoted, mainly short-term fixed-interest securities, and shares.

(20) cash and cash equivalents

Comments of the local security of the states of the same	and the control of the country of the county of the county of the county of
million €	Dec 31, 2002 Dec 31, 2001
Cash at banks		4,116
Cheques, cash on hand and funds payable on demand		169
		4,285

Cash at banks is held at various banks in different currencies.

(21) DEFERRED TAX ASSETS

The deferred tax assets result from the following future tax reliefs:

million €	Dec 51, Zunz Dec 31, Zuvi
Temporary differences between
the tax balance sheet and the consolidated financial statements	828	.171
Future tax savings resulting from losses carried forward		255
Balance sheet amount	1,445	1,426

More details on the deferred taxes are given under note (7) Income tax expense.

(22) PREPAYMENTS AND DEFERRED CHARGES

million €	Dec 31, 2002 Total	of which falling due within one year	Dec 31, 2001 Total	of which falling due within one year
Deferred leasing commissions	94	81	78	୧୫
Other items	179	12	300	18
	273	93	378	86

(23) CAPITAL AND RESERVES

The subscribed capital of Volkswagen AG is denominated in Euros. The shares are bearer shares without nominal value. One share represents a share of 2.56 € of the Company's capital. As well as ordinary shares, there are preferred shares that entitle the bearer to a 0.06 € higher dividend than the ordinary shares but have no voting rights.

Following the exercise of conversion rights from the second tranche of the share option plan, the issue of 819,860 ordinary shares, utilizing part of the existing authorized share capital, resulted in an increase in the subscribed capital by 2.1 million € (previous year: 16.4 million €). 36 million € (previous year: 119 million €) was allocated to the capital reserve.

The subscribed capital is now composed of 320,289,940 ordinary shares with no nominal value and 105,238,280 preferred shares, and totals 1,089 million € (previous year: 1,087 million €). There is an authorized share capital of 400 million € expiring on June 1, 2004. Based on the resolution of the Annual General Meeting on June 7, 2001, further authorized share capital of up to 130 million €, expiring on June 6, 2006, was approved for the issue of new ordinary bearer shares.

	AND 2008 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 10000000000000000000000000000000000000000000000000
	2002 shares	2001 shares	2002 @	2001 E
at January 1	424.708.360	418,308,000	1,087,253	1,070,868,480
Issued shares	819,860	6,400,360	2,098,84	16,384,922
at December 31	425,528,220		424,708,360 1,089,352,243	1,087,253,402

Of the ordinary shares, 41,719,353 were held by the 100% subsidiary Volkswagen Beteiligungs-Gesellschaft mbH at December 31, 2002.

There is authorized share capital of 66.9 million € for the bearers of rights arising from convertible bonds issued by Volkswagen AG on the basis of the authorization given by the Annual General Meeting on June 19, 1997 for the purpose of share issues to the Board of Management, Group senior management and management, as well as employees of Volkswagen AG for whom remuneration is collectively agreed.

share option plan

The Board of Management, with the consent of the Supervisory Board, utilized the authorization to implement a share option plan in the financial years 1999, 2000, 2001 and 2002. The plan entitles the beneficiaries to acquire options for the purchase of shares in Volkswagen AG based on their take-up of convertible bonds at a unit price of 2.56 €. Each bond is convertible into 10 ordinary shares.

The share options are not accounted for until the date the option is exercised. The conversion price then received for the new shares is recorded in subscribed capital or the capital reserve as appropriate.

The initial conversion price of the fourth tranche, reflecting the price of the Volkswagen share on the date the resolution was passed in 2002, was set at 51.52 € per Volkswagen ordinary share. It will increase in each of the following years by 5 percentage points. After a 24-month blocking period, the conversion rights can be exercised between June 19, 2004 and June 11, 2007. For the first conversion period starting on June 19, 2004 the conversion price will be 56.67 €.

The conversion prices and periods of the four tranches are shown in the following table:

in €	1st tranche	2nd tranche	3rd tranche	4th tranche
Initial conversion price	69.48	41.82	59.43	51.52
Conversion price
as from June 11, 2001	76.43
as from October 31, 2001	79.90
as from July 14, 2002		46.00
as from October 30, 2002	83.38	48.09
as from July 14, 2003			65.37
as from publication of quarterly report as at September 30, 2003	86.85	50.18	68.34
as from June 19, 2004				56.67
as from publication of quarterly report as at September 30, 2004		52.28	71.37	59.25
as from publication of quarterly report as at September 30, 2005			74.29	61.82
as from publication of quarterly report as at September 30, 2006				64.40
Beginning of conversion period	June 11, 2001 July 14, 2002 July 14, 2003 June 19, 2004
End of conversion period	June 4, 2004	July 6, 2005		July 6, 2006 June 11, 2007

CONVERSION PRICES AND PERIODS for each tranche of the share option plan

The total value of the issued convertible bonds on December 31, 2002, at 2.56 € per convertible bond, was 6,126,515.20 € (= 2,393,170 bonds), entailing the right to purchase 23,931,700 ordinary shares. The liabilities from convertible bonds are recognized under other payables. In the financial year, 38,025 convertible bonds with a value of 97,344.00 € were returned by employees who have since left the Company. The development in the rights to share options granted is shown in the following table:

DEVELOPMENT IN RIGHTS TO SHARE OPTIONS GRANTED

(15T TO 4TH TRANCHE) Nominal Number Number value of of of conversion potential convertible rights shares bonds € rights shares at January 1, 2002 5,384,607 2,103,362 21,033,620 In financial year granted 1,049,136 409,819 4,098,190 exercised 209,884 81,986 819,860 returned 97,344 38,025 380.250 at December 31, 2002 6,126,515 2,393,170 23,931,700

There is additional authorized share capital of 100 million € for the issue of up to 39,062,500 ordinary and/or preferred shares. This conditional capital increase will only occur to the extent that the bearers of the option and convertible bonds to be issued up to June 1, 2004 exercise their conversion rights.

There is also an authorized share capital of 39.7 million € for the issue of ordinary shares. This conditional capital increase will only occur to the extent that the bearers of the convertible bonds, issued after the authorization given by the Annual General Meeting on April 16, 2002 to implement a share option plan, exercise their conversion rights.

RESERVES CONSULTION AND AND AND AND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

million €	Dec 31, 2002 Dec 31, 2001
Capital reserve
Premium on capital increases	4,232	4,196
Premium on issue of option bonds	219	219
	4,451	4,415
Revenue reserves
Statutory reserve	31	31
Reserve for cash flow hedges	- 189	- 113
Reserve for currency adjustment	- 1,316	- 139
Other revenue reserves	17,664	17,052
Bought-back shares	- 2,285	- 2,285
	13,905	14,546

The capital reserve increased by 36 million € (previous year: 119 million €) because of the allocation of the premium on the increase in subscribed capital resulting from the exercise of conversion rights.

157 million € was allocated to the reserve for cash flow hedges in the current period (previous year: - 202 million €). 233 million € (previous year: 183 million €) was withdrawn from the reserve, with the corresponding effect on the income statement.

DIVIDEND PROPOSAL

In accordance with Section 58 subsection 2 of the German Stock Corporation Act (AktG), the dividend payment by Volkswagen AG is based on the accumulated profit shown in the financial statements of Volkswagen AG. Based on the financial statements of Volkswagen AG reserves of 565 million € are available for distribution. The Board of Management and Supervisory Board of Volkswagen AG propose to the Annual General Meeting that a dividend of 1.30 € per ordinary share and 1.36 € per preferred share, amounting in total to 505 million €, be paid, and that the remaining earnings of 60 million € be carried forward.

(24) minority interests

The equity shares of minority shareholders are attributable primarily to shareholders in AUDI AG.

(25) Provisions

million €	within one year	Falling due after	one year Dec 31, 2002 Dec 31, 2001
Provisions for pensions and similar obligations	340	9.961	10,301	9.984
Provisions in respect of taxes	494	980 -	- 1,474	1,418
Other provisions	5,931	4,643	10,574	10.380
	6,765		15,584 22,349	21,782

provisions for pensions and similar obligations

Provisions for post-employment benefits are established for benefits payable in the form of retirement, invalidity and dependants' benefits. The benefits provided by the Group vary according to the legal, tax and economic circumstances of the country concerned, and usually depend on the length of service and remuneration of the employees.

Group companies provide post-employment benefits under defined contribution plans and defined benefit plans. In the case of defined contribution plans, the Company makes contributions to state or private pension schemes based on legal or contractual requirements or on a voluntary basis. Once the contributions have been paid, no further obligations exist for the Company. Current contributions (excluding contributions to the compulsory state pension system) arc recognized as pension expenditure in the respective year. In 2002 they totalled 15 million € (previous year: 8 million €) in the Group.

Most pension plans are defined benefit plans, with a distinction made between unfunded plans and those funded externally.

The pension provisions for defined benefit plans are determined according to IAS 19 (Employee Benefits) in keeping with the internationally accepted Projected Unit Credit Method, whereby the future obligations are valued on the basis of the pro rata entitlements attributed as at the balance sheet date. The valuation incorporates assumptions as to trends in the relevant variables affecting the level of benefits. All defined benefit plans require actuarial calculations.

Owing to their benefit character, the obligations of the US Group companies, in particular, in respect of post-employment medical care arc likewise shown under defined benefit plans. These obligations similar to pensions take into account the expected long-term rise in the cost of healthcare.

Since 1996 the pension scheme of the Volkswagen Group in Germany has been based on a specially developed pension model classified in accordance with IAS as a defined benefit plan. With effect from January 1, 2001 this model was further developed into a pension fund, with the annual remuneration-linked contributions being invested in funds by VW Pension Trust c.V. Based on fund investment, this model offers the possibility of increasing benefit entitlements while at the same time fully safeguarding them. For this reason almost all Group companies in Germany have now joined the fund. Since the fund investments held by the trust meet the preconditions of IAS 19 for classification as plan assets, they are deducted from the obligation.

The following amounts were recognized on the balance sheet for defined benefit plans:

Comments of Children

Company Comments of Children Comments of Children	Company of the comments of the comments of the comments of the comments of the may be and

million €	Dec 31, 2002 Dec 31, 2001
Present value of externally funded obligations	1,713	1,485
Fair value of plan assets	215	- 1,372
Deficit/surplus	194	113
Present value of unfunded obligations	10,712	9,959
Unrecognized actuarial losses	+ 7,028	- 225
Unrecognized past service cost
Amount not recognized as an asset because of the limit in IAS 19 paragraph 58(b)
Net liability in the balance sheet	10-205	9,847

The net liability recognized on the balance sheet is included in the following items: the secure to the same of the same of the state of the states of the states of the states of the states

million €	Dec 31, 2002 Dec 31, 2001
Provisions for pensions and similar obligations	10,301	9,984
Other assets	- 98	- 137
Net liability in the balance sheet	10,203	9,847

Actuarial gains/losses arise from census changes and changes in actual trends (e.g. in income and pension increases) relative to the assumptions on which calculations were based. In accordance with IAS 19, this amount is divided over the expected average remaining working lives of the employees and recognized as appropiate in the balance sheet and income statement if the actuarial gains or losses not recognized at the beginning of the financial year exceed 10 % of the higher of the defined benefit obligation or the fair value of the plan assets at the beginning of the financial year.

Where the foreign Group companies externally fund obligations, the investment is mainly in the form of real estate, shares and fixed-interest securities. These include no financial instruments issued by companies of the Volkswagen Group and no investment property used by Group companies.

In the financial year pensions totalling 402 million € (previous year: 374 million €) were paid.

The following amounts were recognized in the income statement:

and the many of the same the may be and of the same of the see

million €	2002	2001
Current service cost		362
Interest cost		689
Expected return on plan assets		- 121
Net actuarial gains and losses recognized for the year
Losses/gains on curtailment and settlement
Amount of income and expenses recognized in the income statement		932

The above amounts are generally included in the personnel costs of the functional areas. Accumulation of pension provisions is shown under note (6b) Other financial result.

Investment of the plan assets to cover future pension obligations resulted in actual losses in the amount of 230 million € (previous year: 89 million €).

The net liability recognized in the balance sheet has changed as follows:

22 - 2017 - 12 - 126 - 12
million €	2002	2001
Net liability in the balance sheet at January 1		9,442
Group changes (new pension plans)
Total expense recognized in the income statement	920	932
Company benefit payments and contributions to funds	- 599	- 536
Other changes	24
Exchange differences	- 20
Net liability in the balance sheet at December 31	10,203	9,847

Calculation of the pension provisions was based on the following assumptions:

STATE AND AND A BROAD A BROAD A BALL AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A BEACH AND A A BEACH AND			the state of the country of the states of the states of the states of the states of the states of the states of the states of the states of the states of the states of the st
in %	2002	Germany 2001	2002	Abroad 2001
Discount rate at December 31		6.00	3.00-6.75	3.00-7.50
Expected return on plan assets at December 37		7.00	5.00-8.54	6.71-8.50
Future salary increases		3.00	1:50-5.00	1.50-6.00
Future pension increases	1086 83 7	1.50-4.00	1.36-2400	2.50-3.00
Fluctuation rate		1.40	2 00 - 65 8	2.00-6.60
Annual increase in healthcare costs			5:50-7:00	5.75-7.00

tax provisions

Taxes are detailed under note (7) Income tax expense.

other provisions

million €	Warranties	Distribution COSTS	Workforce costs	EU End of Life Vehicles Directive	Other provisions	Total
at January 1, 2002	3,884	1,667	1,920	597	2,312	10,380
Exchange differences	- 178	- 89	- 60	- 5	- 188	- 520
Changes to Group structure	1			36	୧୦	103
Consumption	2,246	- 1,205	- 876		- 866	- 5,193
Increases/additions	2,808	1,544	897	72	784	6,105
Accumulation of interest	139		2	13	3	158
Reversal	19 -	- 126	- 42	- 110	- 162	- 459
at December 31, 2002	4,395	1,792	1,841	603	1,943	10,574

Payments for which other provisions are made are expected to amount to 56 % in the following year, to 31 % in the years 2004 to 2007 and to 13 % thereafter.

(26) Current and non-current borrowings

The details of current and non-current borrowings are presented in the following table:

			Remaining term	Book value			Remaining term	Book value
	under	within one	over		under	within one	over
million €	one year	to five years	five years	Dec 31, 2002	one year	to five years	five years	Dec 31,2001
Bonds	3,468	6,904	2,623		1,160	3,520	797	5,477
of which convertible	51				51			51
Commercial papers and notes	10,520	3,023	3,388	19, 231	15,424	4,562		19,986
Liabilities to banks	5,283	2,178	753	8,214	8,266	2,556	855	11,677
Deposits from direct banking business	5,284	234	95		4,379	150	16	4,545
Loans	971	87	134		132	103	134	369
Bills of exchange	292	17		300	262	35		297
Liabilities for the capital element of future finance lease payments	193	24	25		70	14	4	88
Borrowings from
subsidiaries	78			81	326		4	330
joint ventures	15				24			24
associates	2
other companies in which an investment is held	7
	26,113	12,467	7,021	45,601	30,044	10,940	1,810	42,794

Of the liabilities shown on the consolidated balance sheet, a total of 171 million € (previous year: 204 million €) are secured, for the most part, by charges on property.

The interest rates on bills of exchange payable vary between 2.0 and 7.0 %. The fair value of the bills of exchange payable is equal to the book value.

The amounts payable to subsidiaries and associates are subject to market interest rates of between 1.2 and 4.2 %.

Asset-backed securities transactions for refinancing in the financial services business amounting to 7,329 million € (previous year: 4,456 million €) are included in the bonds, notes and liabilities from loans. Financial services receivables totalling 8,888 million € (previous year: 5,006 million €) have been pledged as security.

The terms of the bonds, notes and liabilities to banks as well as loans, together with their book values and fair valucs, are shown in the following tables:

BONDS THE CONDENTIAL CON

			Data for underlying take-up of finance, excluding hedging instruments
		Interest		Notional			Book value as at Dec 31, 2002
Interest terms		Currency commitment ending	Weighted interest rate, based on book values	amount million €	< 1 year	1-5 years	Remaining term in million € > 5 years	Tota
floating/fixed	CZK	< 1 year	5.1 %	111	32	79		111
floating/fixed	EUR	< 1 year	4.0 %	3,988	1,819	2,235		4,054
floating/fixed	GBP	< 1 year	4.1 %	394	393			393
floating/fixed	JPY	< 1 year	0.1 %	523	489	32		521
floating/fixed	NOK	< 1 year	7.5 %	110	55	56		111
floating/fixed	PLN	< 1 year	8.9 %	125	99	28		127
floating/fixed	USD	< 1 year	1.5 %	700	175	524		edd
fixed	CZK	1-5 years	7.3 %	158		158		158
fixed	FUR	1–5 years	4.3 %	1,857	50	1,850		1,900
floating	EUR	1—5 years	3.4 %	368		368		368
fixed	USD	1-5 years	2.7 %	1,640	234	1,423		1,657
fixed	EUR	> > years	5.1 %	2,500			2,560	2,560
other				283	71	151	୧3	285
Total non-convertible bonds				12,757	3,417	6,904	2,623	12,944
floating/fixed	EUR	< 1 year	1.8 %	51	51			51
Total convertible bonds				51	51			51
Fair value as at Dec 31, 2002								12,995
Fair value as at Dec 31, 2001								5,510

陳書書的問題書記書於《書書書書『『』『言『『『』『第』『第八言『

MEDIUM AND LONG-TERM NOTES (1) MEN MINISTRATION (1) POST MET (1) MEDIUM (1) CONSULTION (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)

and the state of the state of the states of the states of the states of

			Data for underlying take up of Mance, exchaultig nedging instruments
		nterest		Notional			Book value as at Dec 31, 2002
Interest	Currency	commitment	Weighted interest rate,	amount			Remaining term in million €
terms		ending	based on book values	million €	< 1 year	1-5 years	> 5 years	Total
floating/fixed	EUR	< 1 year	3.1 %	4,642	4,613	20		4,633
floating/fixed	GBP	ሩ 1 year	4.0 %	693	691			691
floating/fixed	JPY	< 1 year	0.1 %	1,141	1,233	24		1,257
floating/fixed	SEK	year	4.0 %	456	453			453
floating/fixed	USD	year V	3.5 %	5.362	1,586	477	3,290	5,353
fixed	USD	1-5 years	2.5 %	2,571	95	2,490		2,585
fixed	USD	5 years A	1.3 0/0	1,708	1,708			1,708
other				233	141	12	98	251
Total				16,806	10,520	3,023	3,388	16,931
Fair value as at Dec 31, 2002								16,844
Fair value as at Dec 31, 2001								19,917

		Interest	Data for underlying take-up of finance, excluding hedging instruments	Notional			Book value as at Dec 31, 2002
Interest terms	Currency	commitment ending	Weighted interest rate, based on book values	amount million €	< 1 year	1-5 years	Remaining term in million € > 5 years	Total
floating/fixed	BRL	< 1 year	14.5 %	163	163		L	163
floating/fixed	CZK	< 1 year	2.9 %	189	189			189
floating/fixed	EUR	< 1 year	3.6 %	3,041	2,496	416	136	3,048
floating/fixed	GBP	< 1 year	4.6 %	384	384			384
floating/fixed	JPY	< 1 year	0.5 %	746	684			684
floating/fixed	SEK	< 1 year	4.1 %	114	114			114
floating/fixed	ટર K	< 7 year	8.4 %	213	213			213
fixed	BRL	1-5 years	18.5 %	909	464	238	207	909
fixed	CZK	1-5 years	4.6 %	133	83	50		133
fixed	EUR	1-5 years	4.4 %	948	103	835	11	949
fixed	JPY	1-5 years	0.6 %	344	1	341		342
fixed	MXN	1-5 years	11.2 %	205	113	ਰੇਤੇ		204
fixed	SKK	1-5 years	8.5 %	113	-	113		113
fixed	USD	5 years A	9.3 %	223			202	202
other				చిర్రదేశాల	278	92	197	567
Total				8,324	5,283	2,178	753	8,214
Fair value as at Dec 31, 2002								8,244
Fair value as at Dec 31, 2001								11.683

THARILITIES TO BARKS - 2017 - 19:40 COMMENT - 10 3 - 3 - 3 - 3 - 3 - 3 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1

The terms of the agreements are in some cases well beyond the stated period of interest commitment. The variable interest rates are based on local Inter Bank rates plus premium.

The direct banking deposits totalling 5,613 million € (previous year: 4,545 million €) are based on overnight and fixed-term deposits as well as savings certificates and savings plans. The interest rate on overnight accounts at the balance sheet date was 3.1 %. Fixed-term deposits, sayings plans and savings certificates, with a maximum term of 30 years, carried interest rates of between 2.5 and 7.0 %. The fair values of the investments correspond to their book values.

LOANSI STATE STATE FOR THE FOR STORE COLLECTION COLLECTION COLLECTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSU	and the state of the many of the state of the country of the country of the county of
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	---------------------------------------------------------------------------------------	--	--

Interest	Currency	Interest commitment	Weighted interest rate,	Notional amount			Book value as at Dec 31, 2002 Remaining term in million €
terms		ending	based on book values	million €	< 1 year	1-5 years	> 5 years	Total
floating/fixed	GBP	vear	4.1 %	923	922			922
fixed	EUR	> > years	5.3 %	114	29	14	71	114
other				153	20	73	63	156
Total				1,190	971	87	134	1,192
Fair value as at Dec 31, 2002								1,196
Fair value as at Dec 31, 2001								289

(27) TRADE PAYABLES

million €	under one year	Falling due over	Book value one year Dec 31, 2002	under one year	Falling due over	Book value one year Dec 31, 2001
Trade payables owing to
third parties	7,095	10	7105	6,883	10	6,893
subsidiaries	62		197	80		80
joint ventures	ટેર		1575	67		67
associates	8			8		8
other companies in which an investment is held	5			7
	7,226	10		7,045	10	7,055

Fair values match the recognized book values.

(28) OTHER PAYABLES

	under	within one	Falling due over	Book value	under	within one	Falling due over	Book value
million €		one year to five years		five years Dec 31, 2002		one year to five years		five years Dec 31,2001
Payments on account received in respect of orders	765	4	O	769	764	2		766
Other liabilities due to
subsidiaries	13	0	0	Strate 300 13	82			82
joint ventures	21			22 14. 2017 2	10			10
associates	2					2		2
other companies in which an investment is held	2			: 1.6. 12	2			2
Liabilities relating to derivative financial instruments	343	204	50	597	635	79	25	739
Liabilities relating to
taxes on income	29			29	29			29
other taxes	760	0	162	922	573		274	847
social security	357	5	0	362	365	র্ব		369
wages and salaries	୧୫୫	59	9	756	780	60		840
Other liabilities	2,102	320	232	2,654	1,807	270	398	2,475
	5,082	ਦੇਰਤ	453	6,128	5,047	417	697	6,161

Fair values match the recognized book values.

The derivative financial instruments have the following negative fair values:

million €	Dec 31, 2002 Dec 31, 2001
Transactions for hedging against
exchange risk from assets through fair value hedges		144
exchange risk from liabilities through fair value hedges		243
interest risk through fair value hedges	500	53
interest risk through cash flow hedges		141
exchange risk from future cash flows (cash flow hedges)		28
Hedging transactions		609
Liabilities arising from ineffective hedging derivatives*		130
		739

* Exchange and interest rate options (caps, collars, floors etc.).

があるというというというというというというというということです。 そのため、 その

Further details on the derivative financial instruments as a whole are given in note (31) Financial instruments.

(29) deferred income

million €	Dec 31, 2002 Total	of which with a remaining term of more than one year	Dec 31, 2001 Total	of which with a remaining term of more than one year
Special payments from operating lease customers	. 30	106	107	107
Other items		167	178	67
		273	285	174

OTHER INFORMATION

(30) cash flow statement

The cash flow statement comprises only cash and cash equivalents shown in the balance sheet.

Cash flows are presented in the cash flow statement analysed into cash inflows and outflows from operating activities, investing activities and financing activities.

The cash flow from operating activities is derived indirectly from the profit before tax. The profit beforc tax is adjusted to take account of the expenses (mainly depreciation) and income with no cash impact. The cash flow from operating activities is then derived by taking the change in working capital into account.

Cash flows from investing activities includes additions to tangible assets and long-term financial assets as well as to capitalized development costs. The changes in leasing and rental assets and in financial services receivables are also shown here.

Cash flows from financing activities includes outflows of funds resulting from dividend payments and redemption of bonds as well as inflows from the issue of bonds and from the change in other financial liabilities.

The changes in balance sheet items presented in the cash flow statement cannot be derived directly from the balance sheet, as the effects of currency translation and changes in the scope of consolidation have no cash impact and are stripped out.

In 2002 cash flows from operating activities includes interest received totalling 3,251 million € and interest paid totalling 2,261 million €. Also, the share of profits and losses of Group companies accounted for using the equity method, note (5a), includes dividends totalling 179 million €.

(31) financial instruments

1. Hedging policy and financial derivatives

In conducting its business operations the Volkswagen Group is exposed, in particular, to fluctuations in exchange rates and interest rates. Corporate policy is to eliminate or limit such risk by means of hedging. All hedging operations are either centrally co-ordinated or carried out by Group Treasury.

2. Hedging rules

The international business operations of the Volkswagen Group expose it to fluctuations in exchange rates as well as fluctuations in interest rates on the international money and capital markets.

General rules apply to Group-wide exchange and interest rate hedging policy, oriented to the Minimum Requirements for Credit Institutions for the Performance of Trading Transactions issued by the Federal Banking Supervisory Authority.

Partners in these financial transactions are top-class national and international banks, whose credit worthiness is continually assessed by the leading rating agencies.

2.1 Exchange rate risk

To hedge against exchange rate risk, foreign exchange forward contracts, forcign exchange options and cross-currency interest rate swaps are used. These transactions relate to the exchange rate hedging of all cash flows in foreign currency arising from operating activities (in particular sales revenue) as well as to the establishment of currency congruence for financing transactions.

The Volkswagen Group hedges planned sales revenues and material purchases in foreign currency on a net basis, according to market estimates, over a period of up to 18 months by means of foreign exchange forward contracts and foreign exchange options. In 2002 hedging related primarily to the US Dollar, the British Pound and the Japanese Yen.

2.2 INTEREST RATE RISK

An interest rate risk – that is, possible fluctuations in value of a financial instrument resulting from changes in market interest rates – is posed primarily in respect of medium- and long-term fixed-interest receivables and payables. To hedge against this risk, interest rate swaps, cross-currency interest rate swaps and other types of interest rate contracts are entered into.

In the Volkswagen Group the differing instruments are used depending on market conditions. If financial resources are passed on to subsidiaries within the Volkswagen Group, such resources are structured congruent to their refinancing.

million €	under one year	within one to five years.	Remaining term over five years	Dec 31, 2002 Notional amount Total	Remaining term over one year	Dec 31, 2001 Notional amount Total
Interest rate swaps"	5,259	11,145	3,969	:20:37:3	8,921	10,718
Interest rate option contracts	351	3,360	O	AR 2014 21	0	1.091
Cross-currency interest rate swaps21	2,305	406	112		387	4,248
Foreign exchange forward contracts	5,689	58		12 4 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8		3,101
Foreign currency swaps	110	27			27	57

Notional amount of derivative financial instruments.

" In view of the development of interest rates in Europe and the USA, in particular, Group companies are now convecting variable interest rate positions into fixed rate positions.

21 Partly in conjunction with issues of notes and bonds as part of the tap issue programs.

The market values of the above derivative financial instruments are determined on the basis of market information as per the balance sheet date as well as by appropriate valuation methods. The discounting as per December 31, 2002 was based on the following interest rate structures:

in %	EUR	USD	GBP	JPY	CAD
Interest rate for six months	2.720	1.250	3.870	0.000	2.780
Interest rate for one year	2.670	1.350	3.870	0.000	2.660
Interest rate for five years	3.660	3.135	4.515	0.320	4.075
Interest rate for ten years	4.380	4.214	4.770	0.880	4.949

2.3 Market risk

A market risk is posed when price changes on the financial markets positively or negatively affect the value of financial instruments.

3. LIQUIDITY RISK

A liquidity forecast with a fixed planning horizon, unused lines of credit and globally available tap issue programs within the Volkswagen Group safeguard liquidity at all times.

4. RISK OF DEFAULT

The risk of default arising from financial assets involves the risk of defaulting by a contract partner, and therefore as a maximum amounts to the positive fair values receivable from them. It is believed that the accounting risk arising from primary financial instruments is covered by value adjustments for bad debts. Since derivative financial instruments are only entered into with topclass banks, and the risk management system imposes trading limits per partner, the actual risk of default is neqligible.

5. Cash flow risk from financial instruments

The cash flow risk is limited by a flexible exchange and interest rate hedging strategy.

(32) contingent liabilities

million €	Dec 31, 2002 Dec 31, 2001
Liabilities from guarantees		531
Liabilities from warranty contracts		208
Pledges on company assets as security for third party liabilities		22
Other potential liabilities
	1550	762

The trust assets and liabilities of the savings and trust entities belonging to the South American subsidiaries not included on the consolidated balance sheet amount to 487 million € (previous year: 932 million €).

(33) legal action

Neither Volkswagen AG nor any of its Group companies is party to any legal or arbitration proceedings that may have a material effect on the economic position of the company or the Group, or has had such an effect within the last two years. Nor are any such proceedings foreseeable. Appropriate provisions are made by the Group company concerned for any potential financial burdens arising from other legal or arbitration proceedings pending, otherwise the company has adequate insurance cover.

(34) other financial obligations

					1. 174654
million €	Payable 2003	Payable 2004-2007	Payable Total from 2008 Dec 31, 2002 Dec 31, 2001	Total	Payable from 2003
Capital commitments in respect of
tangible assets	1,220	511	1,731	1,941	471
intangible assets	88	23	- 111	171	୧୦
investment property	0	29	29	27	26
Obligations from
agreed loans	341		-341	57
long-term leasing and rental contracts	213	388	538 1,139	835	629
Other financial obligations	1,229	148	160 : 1,537	950	324

(35) TOTAL EXPENDITURE FOR THE PERIOD

million €	2002	2001
Cost of materials
Raw materials and supplies, purchased goods and purchased services	56,563 58,144
Labour cost
Wages and salaries	- 10,836 10,696
Social insurance, pension costs and benefits	2,477 2,517
	13,313 13,213
	69,876 71,357

(36) average number of employees during the year

	2002	2001
Performance-related wage-earners	1589	161,323
Time-rate wage-earners		51,393
Salaried staff		87,886
	298,978	300,602
Apprentices		7,317
	306,478	307,919
Vehicle-producing investments
not fully consolidated		16,494
	Cy 8. 31	324,413

(37) POST BALANCE SHEET EVENTS

There were no significant events up to February 19, 2003 (the date of release for publication).

(38) RELATED PARTY DISCLOSURES IN ACCORDANCE WITH IAS 24

Related parties under the terms of IAS 24 are parties that the reporting enterprise has the ability to control or exercise significant influence over, or parties which have the ability to control or exercise significant influence over the reporting enterprise.

The State of Lower Saxony holds 18.2 % of the voting rights of Volkswagen AG and is represented by two delegate members on the Supervisory Board. Transactions with private companies owned by the State of Lower Saxony are conducted under standard market terms.

All business transactions with non-consolidated subsidiaries, joint ventures and associates are conducted under standard market terms.

Members of the Board of Management and Supervisory Board of Volkswagen AG are members of supervisory and management boards of other companies with which Volkswagen AG has relations in the normal course of business activities. All transactions with the said companies are conducted at terms that are also standard in relation to third parties.

Most of the supplies and services transacted between fully consolidated member companies of the Volkswagen Group and related parties (non-consolidated subsidiaries, joint ventures and associates) are presented in the following table:

million €	Share	Supplies and services	rendered		Supplies and services received
	in %	2002	2001	2002	2001
Raffay GmbH + Co, Hamburg	100.00		300		140
Volkswagen Coaching Gesellschaft mbH, Wolfsburg	100.00		84		126
FAW-Volkswagen Automotive Company, Ltd., Changchun	40.00		1,006		11
Shanghai-Volkswagen Automotive Company Ltd., Shanghai	50.00		713
VOLKSWAGEN DOGUS TÜKETICI FINANSMANI ANONIM SIRKETI, Maslak-Istanbul	51.00				0
Volkswagen Bordnetze GmbH, Wolfsburg	50.00				313
IAV GmbH Ingenieurgesellschaft Auto und Verkehr, Berlin	50.00				188
Wolfsburg AG, Wolfsburg	50.00				87

RELATED COMPANY .. . .

remuneration of the board of management and of the supervisory board

The remuneration of the members of the Board of Management for the financial year 2002 totalled 16,469,831 € (previous year: 17,615,655 €), of which 11,754,263 € was variable. As part of the fourth tranchc of the share option plan, the members of the Board of Management subscribed to a further 4,000 convertible bonds entailing the right to purchase ordinary shares in Volkswagen AG. In total, the members of the Board of Management hold rights to purchase 260,000 ordinary shares in Volkswagen AG.

On December 31, 2002 the pension provisions for current members of the Board of Management totalled 20,622,607 €.

The details of the share option plans are explained in note (23) Capital and reserves.

Retired members of the Board of Management and their surviving dependants received 7,190,756 € (previous year: 7,024,611 €). Provisions for pensions for this group of people were recorded totalling 84,958,333 € (previous year: 67,164,307 €).

The remuneration of the members of the Supervisory Board of Volkswagen AG amounted to 2,343,000 € (previous year: 2,331,669 €),

Loans totalling 70,437 € have been granted to members of the Supervisory Board (amount redeemed in 2002: 34,608 €). The loans have an interest rate of 4.0 % and an agreed term of up to 12.5 years.

Wolfsburg, February 19, 2003

Volkswagen Aktiengesellschaft The Board of Management

Again ang u Share of Name, location capital* in % Automotive Division Volkswagen AG, Wolfsburg Volkswagen Sachsen GmbH, Mosel 100.00 Volkswagen Bruxelles S.A., Brussels/Belgium 100.00 100.00 volkswagen slovakia, a.s., Bratislava/Slovak Republic Volkswagen Navarra, S.A., Arazuri (Navarra)/Spain 100.00 100,00 AUTOEUROPA-AUTOMÓVEIS LDA., Palmela/Portugal Volkswagen Motor Polska Sp.z o.o., Polkowice/Poland - - 100.00 Volkswagen-Audi España, S.A., El Prat de Llobregat (Barcelona)/Spain 100.00 volkswagen Group United Kingdom Ltd., Milton Keynes/Great Britain 100.00 Groupe volkswagen France s.a., Villers-Cotterêts/France 100.00 Volkswagen Transport GmbH & Co. OHG, Wolfsburg 100.00 VW Kraftwerk GmbH, Wolfsburg 100.00 Automobilmanufaktur Dresden GmbH, Dresden 100.00 Volkswagen Poznan Sp.z o.o., Poznan/Poland 100.00 Svenska Volkswagen Aktiebolag, Södertälje/Sweden 100.00 Auto 5000 GmbH, Wolfsburg 100.00 , 99.13 AUDI AG, Ingolstadt audi hungaria motor Kft., Györ/Hungary 100.00 cosworth technology limited, Northampton/Great Britain 100.00 Automobili Lamborghini Holding S.p.A., Sant Agata Bolognese/Italy 100.00 AUTOGERMA S.p.A., Verona/Italy 100.00 SEAT, S.A., Barcelona/Spain 100.00 Seat Deutschland GmbH, Mörfeiden-Walldorf 100.00 Gearbox del Prat, S.A., El Prat de Llobregat (Barcelona)/Spain 100.00 škoda auto a.s., Mladá Boleslav/Czech Republic 100 00 ŠkodaAuto Deutschland GmbH, Weiterstadt 100.00 škoda auto Slovensko s.r.o., Bratislava/Slovak Republic 100.00 ŠKODA AUTO Polska, S.A., Poznan/Poland 51.00

* Voting rights correspond to the capital share.

MAJOR GROUP COMPANIES POLI

	Share of capital* in %
Name, location
Automotive Division
BENTLEY MOTORS LIMITED, Crewe/Great Britain	100.00
VOLKSWAGEN OF AMERICA, INC., Auburn Hills, Michigan/USA	100.00
Volkswagen Canada Inc., Ajax, Ontario/Canada	100.00
Volkswagen de Mexico, S.A. de C.V., Puebla/Pue./Mexico	100.00
Volkswagen do Brasil Ltda., São Bernardo do Campo, SP/Brazil	100.00
Volkswagen Argentina S.A., Buenos Aires/Argentina	100.00
Volkswagen of South Africa (Pty.) Ltd., Uitenhage/South Africa	100.00
VOLKSWAGEN Group Japan K.K., Toyohashi/Japan	100.00
Volkswagen Tokyo K.K., Tokyo/Japan	00:00
Audi Japan K.K., Tokyo/Japan	100.00
Shanghai-Volkswagen Automotive Company Ltd., Shanghai/PR of China **	50.00
FAW-Volkswagen Automotive Company, Ltd., Changchun/PR of China **	40.00
Volkswagen (China) Investment Company Ltd., Beijing/ PR of China	00.00
VOLKSWAGEN GROUP AUSTRALIA PTY LTD., Sydney/Australia	100.00
Coordination Center Volkswagen S.A., Brussels/Belgium	100.00
Volkswagen International Finance N.V., Amsterdam/Netherlands	100.00
Volkswagen Investments Ltd., Dublin/Ireland	100.00
gedas group, Berlin	100.00
VW Versicherungsvermittlungs-GmbH, Wolfsburg	66.67
SCANIA Aktiebolag, Södertälje/Sweden***	18.70

The company is accounted for using the equity method.

100.00

Share of Name, location capital* in % Financial Services Division volkswagen financial services ag, Braunschweig 200000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 Volkswagen Leasing GmbH, Braunschweig ් 199 පරුණු ප්‍ර Volkswagen Bank GmbH, Braunschweig ી જિલ્લુલ (Co Volkswagen-Versicherungsdienst GmbH, Wolfsburg 100.00 VOLKSWAGEN FINANCE, S.A., Alcobendas (Madrid)/Spain - 100.00 Volkswagen Finance S.A., Villers-Cotterêts/France 100,00 FINGERMA S.P.A., Verona/Italy 100.00 Volkswagen Financial Services (UK) Ltd., Milton Keynes/Great Britain 100 ab Volkswagen Financial Services N.V., Amsterdam/Netherlands 700.00 Volkswagen Financial Consultant Service K.K., Tokyo/Japan 100.00 volkswagen finance japan K.K., Tokyo/Japan 100.00 Škofin s.r.o., Prague/Czech Republic 1,000 00 ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘ vw credit, inc., Auburn Hills, Michigan/USA - 196.00 Volkswagen Financial Services, S.A. de C.V., Puebla/Pue /Mexico 100,00 ﺍﻟﻤﺴﺘﻘﻠﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘ Financial services companies in Brazil, São Paulo/Brazil 19-100,00 Financial services companies in Argentina, Buenos Aires/Argentina 100.00 Europcar International S.A., St. Quentin-en-Yvelines/France 100.00 EUROPCAR INTERNATIONAL S.A. und Co. OHG, Hamburg 00 100.00 EUROPCAR ITALIA S.P.A., Rome/Italy 100.00 EUROPCAR IB, S.A., Madrid/Spain

* Voting rights correspond to the capital share.

MAJOR ERGUP COMBANIES -----

136

and the comments of the states

independent auditors' report

"We have audited the consolidated financial statements of volksWAGEN AKTIENGESELLSCHAFT, Wolfsburg, consisting of the balance sheet, the income statement, the statement of changes in equity, the cash flow statement as well as the notes to the financial statements for the business year from January 1 to December 31, 2002. The preparation and the content of the consolidated financial statements according to the International Accounting Standards of the IASB (IAS) are the responsibility of the Company's Board of Management. Our responsibility is to express an opinion, based on our audit, as to whether the consolidated financial statements are in accordance with IAS.

We conducted our audit of the consolidated financial statements in accordance with German auditing regulations and generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatements. The evidence supporting the amounts and disclosures in the consolidated financial statements are examined on a test basis within the framework of the audit. The audit includes assessing the accounting principles used and significant estimates made by the Board of Management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, based on our audit, the consolidated financial statements give a true and fair view of the net assets, financial position, results of operations and cash flows of the Group for the business year 2002 in accordance with IAS

Our audit, which according to German auditing regulations also extends to the group management report, combined with the management report of the Company, prepared by the Board of Management for the business year from January 1 to December 31, 2002, has not led to any reservations. In our opinion, on the whole the combined management report provides a suitable understanding of the Group's position and suitably presents the risks of future development. In addition, we confirm that the consolidated financial statements and the combined management report for the business year from January 1 to December 31, 2002 satisfy the conditions required for the Company's exemption from its duty to prepare consolidated financial statements and the Group management report in accordance with German accounting law."

Hanover, February 20, 2003

PwC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Prof. Dr. Winkeljohann Wirtschaftsprüfer

Gadesmann Wirtschaftsprüfer

board of management

MandateS (as per December 31, 2002)

dr.-Ing. E. h. bernd pischetsrieder (55) Chairman (from April 17, 2002) Group Quality, Research and Development July 1, 2000*

Mandates:

• Dresdner Bank AG, Frankfurt am Main
• · Metro AG, Düsseldorf
• Münchener Rückversicherungs-Gesellschaft AG, Munich
• Tetra Laval Group, Pully, Board Member

DR. RER. POL, H. C. BRUNO ADELT (63)

Controlling and Accounting January 1, 1995*

Mandates:

• Dresdner Bank Lateinamerika AG, Hamburg
• · Gerling-Konzern Allgemeine Versicherungs-AG, Cologne

dr. robert büchelhofer (60) Sales and Marketing April 1, 1995*

Mandates:

Generali Holding Vienna AG, Vienna

francisco javier garcia sanz (45) Procurement July 1, 2001*

Mandates:

■ ThyssenKrupp Serv AG, Düsseldorf

DR. RER. POL. H. C. PETER HARTZ (61) Human Resources October 1, 1993*

dr. jur. jens neumann (57)

Group Strategy, Treasury, Legal Matters, Organization January 1, 1993*

Mandates:

• · ESSO Deutschland GmbH, Hamburg
• ExxonMobil Central Europe Holding GmbH, Hamburg
• Frankfurter Versicherungs-AG, Frankfurt am Main
• Hapag-Lloyd AG, Hamburg
• ING BHF-Bank AG, Frankfurt am Main
• ING BHF Holding AG, Frankfurt am Main

DR.-ING. H. C. MULT. FOLKER WEIßGERBER (61) Production March 1, 2001*

DR. RER. NAT. MARTIN WINTERKORN (55)

Chairman of the Board of Management of AUDI AG July 1, 2000*

Mandates:

• · Infineon Technologies AG, Munich
• · Salzgitter AG, Salzgitter

The former Chairman Dr. techn. h. c. Dip) .- Ing. ETH Ferdinand K. Piëch retired from the Board of Management on conclusion of the Annual General Meeting on April 16, 2002, and since that date has been Chairman of the Supervisory Board of Volkswagen AG. His mandates are listed on page 140 of the Annual Report under "Supervisory Board Mandates".

The members of the Board of Management hold other mandates on the supervisory boards of consolidated Group companies and major investment holdings as part of their duty to manage and supervise the Group's business.

• Memberships of statutory supervisory boards in Germany.
• Comparable mandates in Germany and abroad.

* The date signifies the beginning of membership of the Board of Management.

SUPERVISORY BOARD

Mandates (as per December 31, 2002)

dr. techn. h. c. dipl.-ing. eth ferdinand k. piëch (65) Chairman

April 16, 2002*

Mandates:

• Dr. Ing. h. c. F. Porsche AG, Stuttgart
• Porsche Ges.m.b.H, Salzburg
• A Porsche Holding GmbH, Salzburg
• A SCANIA AB, Södertälje

Klaus zwickel (63)

Deputy Chairman 1st Chairman of the Metalworkers Union October 21, 1993* Mandates:

■ Vodafone AG, Düsseldorf (Dep. Chairman)

heinrich aller (55)

Finance Minister of the State of Lower Saxony

April 16, 2002*

Mandates:

• A Bremer Landesbank, Bremen
• ▲ Norddeutsche Landesbank, Hanover (Chairman)

andreas blechner (45)

Chairman of the Works Council of the Volkswagen AG Salzgitter Plant - A Norddeutsch Candeshand, Hanner April 16, 2002*

Dr. Jur. gerhard cromme (59)

Chairman of the Supervisory Board of ThyssenKrupp AG June 19, 1997*

Mandates:

• Allianz AG, Munich
• · Axel Springer Verlag AG, Berlin
• Deutsche Lufthansa AG, Cologne
• E.ON AG, Düsseldorf
• · Ruhrgas AG, Essen
• ThyssenKrupp AG (Chairman)
• Suez S.A., Paris

ELKE ELLER-BRAATZ (40)

Head of the Social Policy Department of the Metalworkers Union August 20, 2001*

Mandates:

DASA DaimlerChrysler Aerospace AG, Munich

DR. RER. POL. PETER FISCHER (61) Minister (ret.)

November 19, 1998 - April 16, 2002*

dr. jur. Michael frenzel (55)

Chairman of the Board of Management of TUI AG June 7, 2001*

Mandates:

• AXA Group AG, Cologne
• Continental AG, Hanover
• Deutsche Bahn AG, Berlin (Chairman)
• E.ON Energie AG, Munich
• ING BHF-Bank AG, Frankfurt
• ING BHF Holding AG, Frankfurt
• Hapag-Lloyd AG, Hamburg (Chairman)
• Hapag-Lloyd Flug GmbH, Hanover (Chairman)
• TUI Germany GmbH, Hanover (Chairman)
• * Preussag North America, Inc., Greenwich (Chairman)

sigmar gabriel (43)

Minister President of the State of Lower Saxony January 28, 2000*

dr. jur. hans michael gaul (60)

Member of the Board of Management of E.ON AG June 19, 1997*

Mandates:

• Allianz Versicherungs-AG, Munich
• Deutsche Krankenvers. AG, Cologne
• rag ag, Essen
• STEAG AG, Fissen
• Degussa AG, Düsseldorf
• · E.ON Energie AG, Munich
• · Viterra AG, Essen (Chairman)
• E.ON North America Inc., New York
• LGSE Energy Corp., Louisville
• A Powergen plc., London

Gerhard Kakalick (56)

Chairman of the Works Council of the Volkswagen AG Kassel Plant June 3, 1993*

wolfgang klever (62)

Chairman of the Works Council of the Volkswagen AG Braunschweig Plant October 1, 1995 - April 16, 2002*

dr. rer. Pol. jürgen krumnow (58)

Member of the Advisory Board of Deutsche Bank AG June 1, 1994 - April 16, 2002+

OLAF KUNZ (43)

Head of Corporate and Co-determination Policy on the Executive Committee of the Metalworkers Union April 16, 2002*

Mandates:

■ Bosch Sicherheitssysteme GmbH, Stuttgart

günter lenz (43)

Chairman of the Works Council of the Business Line Commercial Vehicles July 1, 1999*

dr. jur. klaus liesen (71)

Chairman of the Supervisory Board (to April 16, 2002) July 2, 1987*

Mandates:

• Allianz AG, Munich (Chairman)
• E.ON AG, Düsseldorf (Chairman)
• Ruhrgas AG, Essen (Chairman)
• TUI AG, Hanover

xaver meier (58)

Chairman of the General Works Council of AUDI AG July 1, 1999*

Mandates;

• AUDI AG Ingolstadt (Dep. Chairman)
• A BRG-Jahreswagenvermittlung e.G., Ingolstadt

ROLAND DETKER (53)

President Deutsche Schutzvereinigung für Wertpapierbesitz e. V. (German Shareholders' Association)

June 19, 1997* Mandates:

• · Degussa AG, Düsseldorf
• IKB Deutsche Industriebank AG, Düsseldorf
• Mulligan BioCapital AG, Hamburg (Chairman)
• Gamma Holding, N.V., Helmond
• Dr. August Oetker KG Group, Bielefeld
• Scottish Widows Pan European Smaller Companies oesc, London

dr. jur. dr.-ing. e. h. heinrich v. pierer (62)

Chairman of the Board of Management of Siemens AG June 27, 1996*

Mandates:

• Bayer AG, Leverkusen
• Hochtief AG, Essen
• · Münchener Rückversicherungs-Gesellschaft AG, Munich
• Siemens AG, Austria

DR. RER. POL. ALBERT SCHUNK (61)

Head of the International Department on the Executive Committee of the Metalworkers Union July 5, 1977 – April 16, 2002*

the lord david simon of highbury, cbe (63)

Adril 16, 2002*

Mandates:

• Advisory Director, Fortis, Brussels
• Advisory Director, Morgan Stanley Dean Witter (Europe)
• A Director, Suez Group, Paris
• · Director, Unilever plc., London
• Director, Unilever N.V., Rotterdam

BERND SUDHOLT (56)

Deputy Chairman of the Group and

General Works Councils of Volkswagen AG

July 2, 1992*

Mandates:

• Autostadt GmbH, Wolfsburg
• VOLKSWAGEN FINANCIAL SERVICES AG, Braunschweig (Dep. Chairman)
• A Neuland Wohnungsgesellschaft mbH, Wolfsburg (Chairman)
• ▲ VfL Wolfsburg-Fußball GmbH, Wolfsburg

DR. RER. POL. H. C. KLAUS VOLKERT (60)

Chairman of the Group and General Works Councils of Volkswagen AG July 2, 1990*

Mandates:

• · Autostadt GmbH, Wolfsburg
• Wolfsburg AG, Wolfsburg
• VfL Wolfsburg-Fußball GmbH, Wolfsburg
• ▲ Volkswagen Coaching GmbH, Wolfsburg
• · Volkswagen Immobilien Service GmbH, Wolfsburg

DR, RER. POL. BERND W. VOSS (63)

Member of the Supervisory Board of Dresdner Bank AG July 22, 1993 – April 16, 2002*

dr. rer. pol. ekkehardt wesner (63)

Senior Executive of Volkswagen AG

June 18, 1996*

Mandates:

VW Kraftwerk GmbH, Wolfsburg

• · Memberships of statutory supervisory boards in Germany.
• · Group mandates on statutory supervisory boards.
• Comparable mandates in Germany and abroad.
• The date signifies the beginning or period of membership of the Supervisory Board.

committees of the supervisory board

Members of the Presidium and Mediation Committee as per Section 27 subsection 3 of the Co-determination Act Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand K. Piëch (Chairman) Klaus Zwickel Sigmar Gabriel Dr. rer. pol. h. c. Klaus Volkert

Members of the Finance and Investment Committee (to November 15, 2002)

Dr. techn. h. c. Dipl .- Ing. ETH Ferdinand K. Piëch (Chairman) Andreas Blechner Dr. jur. Michael Frenzel

Sigmar Gabriel

Dr. jur. Hans Michael Gaul

Gerhard Kakalick

Günter Lenz

のあるとかなると、なると、なると、なるのではないとなるというという

..............................................................................................................................................................................

できるなのです

Dr. jur. Dr.-Ing. E. h. Heinrich von Pierer Dr. rer. pol. h. c. Klaus Volkert Klaus Zwickel

Members of the Balance Sheet and Personnel Committee (to November 15, 2002) Dr. techn. h. c. Dipl .- Ing. ETH Ferdinand K. Piëch (Chairman) Heinrich Aller Dr. jur. Gerhard Cromme

Elke Eller-Braatz Olaf Kunz Xaver Meier Roland Oetker The Lord David Simon of Highbury, CBF Bernd Sudholt Dr. rer. pol. Ekkehardt Wesner

Members of the Audit Committee (from November 15, 2002) Dr. jur. Klaus Liesen (Chairman) Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand K. Piëch

Dr. rer. pol. h. c. Klaus Volkert Bernd Sudholt

german commercial code a market de la manus manus manus commental comments and

	1993	1994	1995	1996	1997	1998	1999
Volume Data (thousands)
Vehicle sales (units)	2,962	3,108	3,607	3,994	4,250	4,748	4,923
Germany	914	901	937	958	993	1,153	1,104
Abroad	2,048	2,207	2,670	3,036	3,257	3,595	3,819
Production (units)	3,019	3,042	3,595	3,977	4,291	4,823	4,853
Germany	1,411	1,425	1,526	1,591	1,619	1,983	1,879
Abroad	1,608	1,617	2,069	2,386	2,672	2,840	2,974
Workforce (yearly average)	253	238	257	261	275	294	306
Germany	150	141	143	139	144	153	159
Abroad	103	97	114	122	131	141	147
Financial Data in million €
Income Statement
Sales revenue	39,158	40,924	45,055	51,192	57,901	68,637	75,167
Cost of sales	36,362	37,181	41,261	46,274	51,603	60,111	66,646
Gross profit	2,796	3,743	3,794	4,918	6,298	8,526	8,521
Distribution costs	3,019	3,242	3,624	4,244	4,615	5,515	6,107
Administrative expenses	1,213	1,250	1,211	1,360	1,422	1,589	1,705
Other operating income less other
operating expenses	400	672	1,100	883	639	844	732
Financial result	200	313	510	811	1,066	949	1,080
Profit or loss before tax	- 836	236	569	1,008	1,966	3,215	2,522
Income tax expense	156	159	397	661	1,270	2,068	1,678
Profit or loss after tax	- 992	77	172	347	୧୨୧	1,147	844
Cost of materials	24,302	24,660	26,672	31,463	34,862	43,116	46,250
Labour cost	9,657	9,389	9,717	10,588	10,577	11,482	11,967
Balance Sheet at December 31
Non-current assets	16,900	16,040	16,288	18,480	20,204	23,466	28,171
of which: leasing and rental assets	3,843	4,210	5,265	6,196	6,547	7,068	9,058
Current assets	23,427	25,264	26,572	29,733	31,667	36.473	38,860
Prepayments and
deterred charges	218	154	128	139	95	63	87
Total assets	40,545	41,458	42,988	48,352	51,966	60,002	67,118
Capital and reserves	7,915	7,280	6,470	6,810	7,322	9,584	10,073
Provisions	13,249	14,520	16,229	18,420	19,134	20,674	21,569
Liabilities	18,880	19,071	19,339	21,472	24,022	28,227	33,529
Deferred income	501	587	ರ್ಕೆ ೧	1,650	1,488	1,517	1,946
Total equity and liabilities	40,545	41,458	42,988	48,352	51,966	60,002	67,118
Capital investments
(excluding leasing
and rental assets)	2,475	2,889	3.509	4.470	5,033	7,114	7,537
Additions to leasing and rental assets	2,780	2,956	3.721	3.906	3,954	5,313	6,941
Cash flow	4.639	6.032	5.317	5.669	6.778	8 592	8 575

	2000	2001	2002
Volume Data (thousands)
Vehicle sales (units)	5,165	5,107	4,996
Germany	1,019	તે રેતે જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામનાં લ	908
Abroad	4,146	4,138	4,088
Production (units)	5,156	5,108	5,023
Germany	1,830	1,886	1,781
Abroad	3,326	3,222	3,242
Workforce (yearly average)	322	324	324
Germany	163	167	ા રાજ
Abroad	। ਦੇ ਰੋ	157	ી રેક્ષિ
Financial Data in million €
Income Statement
Sales revenue	83,127	88,540	86,948
Cost of sales	71,130	75,586	74,188
Gross profit Automotive Division	11,997	12,954	12,760
Gross profit Financial Services Division	1,213	1,328	1,238
Distribution costs	7.080	7,554	7,560
Administrative expenses	2,001	2,154	2,155
Other operating income less
other operating expenses	- 105	850	478
Operating profit	4,024	5,424	4,767
Financial result	- 305	- 1,015	-775
Profit before tax	3,719	4,409	3,986
Income tax expense	1,105	1,483	1389
Profit after tax	2,614	2,926	2,597
Cost of materials	57,578	58,144	56,563
Labour cost	12,691	13,213	13 313
Balance Sheet at December 31
Non-current assets	29,297	32,330	34,563
Leasing and rental assets	4,783	7.284	8,445
Current assets2)	58,186	64,432 65,615
Prepayments and deferred charges	299	378	- 273
Total assets	92,565	104,424	108,896
Capital and reserves	21,371	23,995	24,634
Minority interests	49	53	57
Provisions2)	23,223	24,081	24,907
Liabilities	47,718	56,010	58,965
Deferred income	204	285	333
Total equity and liabilities	92,565	104,424	108,896
Cash flows from operating activities	9,210	10,038 10,460
Cash flows from investing activities	14,563	15,191	16,016
Cash flows from financing activities	4,751	6,983	4,623

" The financial statements drawn up in accordance with International Accounting Standards (IAS) are not
comparable with figures prepared in accordance with the German Comm

" Including deferred taxes.

SELECTED TERMS AT A GLANCE

ADR (American Depositary Receipts)

Stock certificates issued by US banks in respect of the non-American stocks deposited with them. The certificates are traded on US exchanges in place of the actual stocks.

Asset Backed Securities

Asset Backed Securities are securities on which the payment claim is backed by receivables of the same kind (such as loan, lease or mortgage receivables), thereby providing the investors with collateral.

Customer Relationship Management

The consistent alignment of all potential and existing business processes to the customers, with the aim of identifying and responding to their individual needs and expectations.

Corporate Governance

The system by which companies are responsibly directed and controlled by the Management and Supervisory Boards, towards achieving long-term enhancement of value.

DJSI (Dow Jones Sustainability World Index)

Index established jointly by Dow Jones & Company and the Swiss rating agency SAM Sustainable Asset Management for companies that are sector leaders in terms of economic, ecological and social sustainability.

eCAP (electronic Capacity Management)

cCAP is an electronic capacity management system providing continuous matching of supplier capacities to Volkswagen demand.

ESL (Electronic Supplier Link)

Internet tool by which the Volkswagen Group issues inquiry packages in respect of all sourcing items in digital form to registered suppliers.

FSI (Fuel Stratified Injection)

Petrol direct injection technique developed by Volkswagen and Audi enabling improved performance and higher torque combined with fuel economy and lower emissions.

Global Compact

The Global Compact is an initiative of the United Nations in which multinational companies voluntarily commit to ecologically and socially sustainable globalization. The aim is to further the implementation of new principles in the fields of human rights, working conditions and practices, and environmental protection worldwide.

Group Junior Executive Program (GJEP)

The aim of the Group Junior Executive Program is to develop the best executives in the Group with the potential for senior management.

Job Family Concept

With the Job Family Concept employees are interlinked in a human resources network throughout the product creation, production and marketing process chain beyond the usual boundaries of hierarchies, brands, regions and countries.

JUMP (Junior Management Program)

In a combination of project work, Group-wide qualification modules and individual skills development, both on and off the job, junior management staff are prepared to take up future management and supervisory roles.

MPV

Multi Purpose Vehicle.

SIIV

Sports Utility Vehicle.

Sun-Fuel

Renewable energy based synthetic designer fuel produced from hydrocarbons and containing no sulphur or aromatic compounds.

nota de confirmación del censor de cuentas

Hemos verificado el Cierre del Grupo de VOLKSWAGEN AKTIENGESELL-SCHAFT, Wolfsburg, el cual consta del Balance, de la Cuenta de Pérdidas y Ganancias, de la Cuenta de Modificaciones del Capital Propio, de la Cuenta de Flujo de Capitales y del Anexo correspondiente, todo ello para el Ejercicio comprendido entre el 1 de encro y el 31 de diciembre 2002. La redacción y la rectitud de datos contenidos en el Cierre del Grupo recaen, según las disposiciones de las normas International Accounting Standards del IASB (IAS), bajo la responsabilidad del Consejo de Dirección de la sociedad. Nuestra labor consiste en juzgar si el Cierre del Grupo se corresponde con la normativa IAS, basándonos para ello en la auditoría que hemos practicado.

La verificación del Cierre del Ejercicio del Grupo la hemos realizado observando la normativa alemana de auditoría, así como de verificación del Cierre del Ejercicio establecidas por el Institut der Wirtschaftsprüfer in Deutschland e. V. (IDW). Según estos principios, la auditoría ha de planificarse y realizarse de modo tal, que pueda juzgarse con seguridad suficiente si el Cierre del Grupo está exento de vicios esenciales. En el marco de esta verificación se realizan pruebas aleatorias con el fin de comprobar los justificantes de valoraciones practicadas y de los datos incluídos en el Cierre del Grupo. Esta verificación comprende la evaluación de los principios contables aplicados en el Balance y de las apreciaciones esenciales del Consejo de Dirección, así como de la presentación global del Cierre del Ejercicio. Creemos que nuestros trabajos de verificación constituyen una base suficientemente segura como para poder emitir un juicio fundado.

Basándonos en la auditoría practicada, estamos convencidos de que el Cierre del Grupo refleja fielmente, de acuerdo con la normativa IAS, la situación patrimonial, financiera y de beneficios del Grupo, así como del transcurso y trayectoria de los pagos del Ejercicio.

Nuestra auditoría que, según las normas alemanas de auditoría también ha comprendido el Informe de Situación del Grupo emitido por el Consejo de Dirección y referente al Ejercicio comprendido entre el 1 de enero y el 31 de diciembre 2002, no ha dado lugar a objeción alguna. Según nuestro convencimiento, el Informe de Situación del Grupo ofrece, en su totalidad, una imagen veridica de la situación del Grupo y presenta de forma real los riesgos en evoluciones futuras. Asimismo, confirmamos que el Cierre del Grupo y el Informe resumido de Situación del Grupo para el Ejercicio comprendido entre el 1 de enero y el 31 de diciembre 2002 cumple con los requisitos previos para eximir a la sociedad de la obligación de extender adicionalmente el Cierre y el Informe de Situación del Grupo según las normas HGB (Código Mercantil Alemán).

Hannóver, el 20 de febrero 2003

PwC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft

Prof. Dr. Winkeljohann Censor de cuentas

Gadesmann Censor de cuentas

cuenta de pérdidas y ganancias del grupo volkswagen desde el 1 de enero al 31 de diciembre 2002

mill. de €	2002	2001
Ingresos por Ventas	86.948	88.540
Costes de los Ingresos por Ventas	74.188	75.586
Resultado Bruto Sector Automóviles del Grupo*	+ 12.760	+ 12.954
Resultado Bruto Sector Servicios Financieros del Grupo*	+ 1.238	+ 1.328
Costes de Distribución	7.560	7.554
Costes Generales de Administración	2.155	2.154
Otros Ingresos de la Explotación	4.137	4.118
Otros Gastos de la Explotación	3 €59	3.768
Resultado Operativo	+ 4.761	+ 5.424
Resultado de Participaciones Valoradas at Equity	+ 534	+ 289
Resultado de Otras Participaciones	+ 12	+ 62
Resultado de Intereses	- 478	- 481
Resultado de Otros Conceptos Financieros	- 843	- 885
Resultado Financiero	- 775	1.015
Resultado antes de Impuestos	+ 3.986	+ 4.409
Impuestos sobre la Renta y los Beneficios	1.389	1.483
reales	1.369	1.265
diferidos	20	218
Resultado después de Impuestos	+ 2.597	+ 2.926
Participación de Socios Ajenos en el Resultado	- 13	- 17
Participación de los Accionistas
de Volkswagen AG en el resultado	+ 2.584	+ 2.915
Resultado por Acción Ordinaria (€)	+6,72	+ 7,67
Resultado diluído por Acción Ordinaria (€)	+ 6,72	+ 7,62
Resultado por Acción Preferencial (€)	+ 6,78	+ 7,73
Resultado diluído por Acción Preferencial (€)	+ 6,78	+ 7,68

* El Resultado de los contratos de leasing operando está contenido en el Resultado Bruto del Sector Automóviles del Grupo.

balance del Grupo Volkswagen al 31 de diciembre 2002

1

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.

. . . . . . . . . . . . . . .

i .. . .. .

:

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mill. de €	2002	2001
Activo
Inmovilizado
Valor Patrimonial Inmaterial	7.736	6.596
Inmovilizado Material	22.842	21.735
Participaciones valoradas at Equity	3.397	3.398
Inmovilizado Financiero Restante	588	601
	34.563	32.330
Bienes Arrendados	8.445	7.284
Circulante
Existencias	10.677	9.945
Cuentas a Cobrar de Servicios Financieros	37.512	36.087
Cuentas a Cobrar por Suministros y Servicios	5.747	5.141
Otras Cuentas a Cobrar y Valores Patrimoniales	4.055	3.938
Valores	3.192	3.610
Medios de pago	2.987	4.285
	64.170	63.006
Impuestos Activos Diferidos	1.445	1.426
Cuentas de Periodificación	273	378
Suma del Balance	108.896	104.424
Pasivo
Capital Propio
Capital Suscrito	1.089	1.087
Reservas de Capital	4.451	4 415
Reservas de Ganancias	13.905	14.546
Beneficio del Balance del Grupo	5.189	3.947
	24.634	23.995
Participación de Socios Ajenos	57	ਦੇਤੋ
Provisiones	22.349	21.782
Impuestos Pasivos Diferidos	2.558	2.299
Obligaciones
Deudas Financieras a Largo Plazo	19.488	12.750
Deudas Financieras a Corto Plazo	26.113	30.044
Obligaciones por Suministros y Servicios	7.236	7.055
Otros Obligaciones	6.128	6.161
	58.965	56.010
Cuentas de Periodificación	333	285
Suma del Balance	108.896	104.424

evolución del capital propio del grupo volkswagen

mill. de €	Capital Suscrito	Reservas de Capital	Reservas de Ganan- cias	de ellos: Reservas por Conversion de Divisas	de ellos: Reservas para Cash-flow Hedges	Beneficio del Balance del Grupo	Total
Estado: al 01.01.2001	1.071	4.796	13.690	(- 275)	(165)	2.314	21.371
Aumento de Capital	16	119					135
Resultado del Grupo						2.926	2 926
Asignación a Reservas			821			- 821
Distribución de Dividendos						- 465	- 465
Otras Modificaciones			35	(136)	(- 278)	- 7	28
Estado: al 31.12.2001	1.087	4.415	14.546	(- 139)	(- 113)	3.947	23.995
Aumento de Capital	2	36					38
		1				2.597	2.597
Resultado del Grupo			871			- 871
Asignación a Reservas						- 509	- 509
Distribución de Dividendos
Otras Modificaciones			- 1.512	(- 1.177)	(-76)	25	- 1.487
Estado: al 31.12.2002	1.089	4.451	13.905	(- 1.316)	(- 189)	5.189	24.634

flujo de capital del grupo volkswagen DESDE EL 1 DE ENERO AL 31 DE DICIEMBRE

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------:

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:

---

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在

mill. de €	2002	2001
Existencia Inicial Medios de Pago	4.285	2.156
Resultado antes de Impuestos	3.986	4.409
Pagos de Impuestos sobre Beneficios	1.376	- 1.362
Amortizaciones sobre Inmovilizado Material y Valores Patrimoniales Inmateriales	4.898	4.668
Amortizaciones sobre Costes Activados de Desarrollo	980	917
Amortizaciones sobre Inmovilizado Financiero*	4	18
Amortizaciones sobre Bienes Arrendados*	1.418	1.159
Modificación de las Provisiones	968	620
Resultado de la Salida de Objetos del Inmovilizado	176	୧୦
Resultado de la Valoración at Equity	- 303	170
Otros Ingresos y Gastos sin Carácter de Pago	400	358
Variación de Existencias	- 921	- 597
Variación de las Cuentas a Cobrar (sin el Sector Servicios Financieros)	- 660	- 169
Modificación de Obligaciones (sin Deudas Financieras)	1.184	127
Cash-flow de los Negocios en curso	10.460	10.038
Inversiones en el Inmovilizado Material		- 6.617
y los Valores Patrimoniales Inmateriales	- 6.827 2.460	- 2.180
Entradas de Costes Activados de Desarrollo	181	82
Adquisición de Sociedades Afiliadas y Participaciones	-78	28
Inversiones en Inmovilizado Financiero Restante Variación de los Bienes Arrendados (sin Amortizaciones)	3.205	3.428
	3.649	- 3.396
Variación de las Cuentas a Cobrar de Servicios Financieros
Ingresos por la Salida de Objetos del Inmovilizado (sin Bienes Arrendados)	384	540
Actividad Inversora de los Negocios en curso	16.016	15.191
Cash-flow neto	5.556	- 5.153
Variación de los Depósitos en Valores	232	266
Actividad Inversora incl. Depósitos en Valores	16.248	14.925
Ingresos de Capital	38	135
Pago de Dividendos	- 509	- 465
Otras Modificaciones del Capital Propio	- 5	- 345
Ingreso de Empréstitos	9.285	4.319
Reintegro de Empréstitos	- 1.598	3.232
Variación de las Otras Deudas Financieras	2727	6.917
Pagos de Leasing	- 22	- 27
Variación de los Prestamos a Sociedades del Grupo	161	- 319
Actividad de Financiación	4.623	6.983
Variación de los Medios de Pago de Modificaciones en el Circulo del Grupo	27	29
Variación de los Medios de Pago de Modificaciones de las Tasas de Cambio	160	র্ব
Variación de los Medios de Pago	- 1.298	2.129
Existencia Final de los Medios de Pago	2.987	4.285
Medios de Pago	2.987	4.285
Valores y préstamos	3.837	4.581
Liquidez Bruta Situación de Créditos	6.824	8.866 42.794
Liquidez Neta	- 45.602 38.778	33.928

* Saldado con asientos de entrada.

.

CIERRE DEL EJERCICIO DEL GRUPO VOLKSWAGEN (extracto)

informe por segmentos según sectores del grupo

	Automóviles		Servicios Financieros		Consolidación		Grupo Volkswagen
mill, de €	2002	2001	2002	2001	2002	2007	2002	2001
Ingresos por Ventas a Terceros	77.503	80.072	9.445	8.468			86.948	88.540
Ingresos por Ventas entre Sectores del Grupo	470	363	14	106	- 484	- 469
Ventas por Segmentos	77.973	80.435	9.459	8.574	- 484	- 469	86.948	88-540
Ingresos Financieros	24	23	3.645	3.699	- 380	- 266	3.289	3.456
Ingresos por Segmentos	77.997	80.458	13 104	12.273	- 864	- 735	90.237	91.996
Resultado Operativo	3.875	4.625	721	552	165	247	4.761	5.424
Resultado de Participaciones Valoradas at Equity	508	294	26	5		400	534	289
Cash-flow de los Negocios en curso	8.065	8.036	2.235	2.573	160	- 571	10.460	10.038
Patrimonio por Segmentos	61.726	66.665	48.737	45.944	- 6.998	- 13.610	103.465	98.999
Participaciones Valoradas at Equity	3.354	3.377	43	21		-	3.397	3.398
Deudas por Segmentos	44.740	50-801	44.153	41.070	- 8.663	- 15.160	80.230	76.711
Inversiones en Inmovilizado Material (incl. Otros Valores Patrimoniales Inmateriales)	6.730	6.529	97	88			6.827	6.617
Costes Activados de Desarrollo	2.460	2.180					2.460	2.180
Inversiones en Bienes Arrendados	3	8	6.908	6.937			6.911	6.945
Actividad Inversora de los Negocios en curso según Fluio de Capital	9.121	7.763	6.798	7.034	97	394	16.016	15.191

INFORME POR SEGMENTOS SEGÚN MERCADOS 2002

mill, de €	Alemania	Resto de Europa	America del Norte	Sud- america	Africa	Asia/ Oceania	Consoli- dacion	Total
Ingresos por Ventas a Terceros	23.874	36.365	17.277	3.333	951	5.148		86.948
Inversiones en Inmovilizado Material y Valores Patrimoniales Inmateriales	4.555	1.794	327	250	62	27	– 188	6.827
Patrimonio por Segmentos	57.657	33.073	18.896	3.338	351	2.111	- 11.961	103.465

INFORME POR SEGMENTOS SEGÚN MERCADOS 2001

mill. de € €	Alemania	Resto de Europa	America del Norte	Sud- america	Africa	Asia/ Oceania	Consoli- dación	Total
Ingresos por Ventas a Terceros	24.484	35.863	17.832	4.565	1.060	4.736	0	88.540
Inversiones en Inmovilizado Material y Valores Patrimoniales Inmateriales	3.402	2.146	466	531	28	44	0	6.617
Patrimonio por Segmentos	54.041	30.842	18.407	5.339	306	2.074	- 12.010	98.999

La estructura interna de organización y gestión, así como los informes internos al Consejo de Dirección y al Consejo de Vigilancia forman la base para la determinación del formato primario del informe por segmentos del Grupo Volkswagen; después se divide el Grupo Volkswagen en los Sectores Automóviles y Servicios Financieros del Grupo. Las sociedades de financiación y las otras sociedades han sido asignadas al Sector Automóviles. El formato secundario del Informe se orienta según puntos de vista geográficos.

Las relaciones comerciales entre las sociedades de los segmentos del Grupo Volkswagen se manejan básicamente con precios que también han sido acordados con terceros.