63. Division by geographical markets
The presentation of the reportable segments pursuant to IFRS 8 based on the internal reporting structure of the VW FS AG Group has been changed compared with the presentation of the 2013 consolidated financial statements. These changes are as follows.
As part of the restructuring of the Germany market as of January 1, 2014, the companies VW Versicherungsver- mittlungs-GmbH and Volkswagen Versicherung AG were reclassified from the Germany market to the Holding. According- ly, they were also reclassified in the segment reporting from the Germany Market column to the Reconciliation column. In this connection the France branch of Volkswagen Versicherung AG was reclassified from the Europe segment to the Rec- onciliation column. As in the past, this column also contains the holding and the financing companies. In order to ensure comparability the prior-year figures were adjusted accordingly.
The MAN FS segment was added to the internal reporting structure of the VW FS AG Group when the MAN Financial Services Group was acquired as of January 1, 2014. This expansion is reflected accordingly in the segment reporting.
The reportable segments pursuant to IFRS 8 based on the internal reporting structure of the VW FS AG Group are its geo- graphical markets of Germany, Europe, Latin America, Asia Pacific and MAN FS. Foreign branches of German subsidiaries are included in the Europe segment. The Europe segment contains the subsidiaries and branches in the United Kingdom, Italy, France, the Czech Republic, Austria, the Netherlands, Spain, Sweden, Ireland, Greece, Portugal, Poland and Russia. The Latin America segment contains the subsidiaries in Mexico and Brazil. The Asia Pacific segment contains the subsidi- aries in Australia, Japan, China, India and South Korea.
The VW FS AG holding company, the holding and financing companies in the Netherlands, France and in Belgium, VW
Versicherungsvermittlungs-GmbH and Volkswagen Versicherung AG are contained in the “Reconciliation” column. This presentation ensures that in the internal reporting system there is a distinction between market performance and typical holding and financing functions as well as industry, primary insurance and reinsurance business.
The information made available to management for controlling purposes is based on the same accounting policies that are used in external accounting.
The performance of each individual segment is measured on the basis of the operating profit and profit before tax. The operating profit includes the net income from lending, leasing and insurance transactions after provisions for risks, net commission income as well as general administration expenses and other operating income and expenses. The interest expense, general administration expenses and other operating income and expenses that are not a component of the operating profit mainly comprise interest income and expense from external tax audits, interest accruals for other provisions as well as interest expense for pension provisions and expected income from plan assets of externally financed pension obligations. Interest income not classified as revenue is interest income that is not attributable to the financial services business. It is not a component of the operating profit
DIV I S IO N BY G EO G RA P H I CA L M A R KETS 20 1 3:
JAN. 1 – DEC. 31, 2013
€ million Germany Europe AmericaLatin Asia Pacific segmentsTotal ciliationRecon- Group
Sales revenue from lending transactions with
third parties 958 771 1,064 461 3,254 65 3,319
Sales revenue from lending transactions
between the segments 85 0 – 0 85 –85 –
Segment sales revenue from lending
transactions 1,043 771 1,064 461 3,339 –20 3,319
Sales revenue from leasing and service
contracts 5,976 3,514 90 9 9,589 –9 9,580
Premiums earned from insurance business – – – – – 96 96
Commission income 274 134 114 3 525 17 542
Sales revenue 7,293 4,419 1,268 473 13,453 84 13,537
Cost of sales from lending, leasing and service
transactions –3,998 –2,709 –3 –2 –6,712 – –6,712
Write–ups on leasing and rental assets as well as
investment property 0 13 – – 13 – 13
Depreciation and impairment losses on leasing
and rental assets as well as investment property –1,082 –465 –1 0 –1,548 – –1,548 of which impairment losses in accordance
with IAS 36 –68 –14 – – –82 – –82
Expenses from the insurance business – – – – – –64 –64
Interest expense (part of the operating result) –486 –255 –517 –210 –1,468 30 –1,438 Risk provisions arising from lending and leasing
business –256 –139 –184 –36 –615 0 –615
Commission expenses –155 –164 –58 –29 –406 4 –402
Result from the measurement of derivative financial instruments and hedged items (part of
the operating result) –12 – – – –12 –2 –14
General and administrative expenses (part of
the operating result) –803 –361 –194 –123 –1,481 –115 –1,596
Other operating result (part of the operating
result) 119 –6 –29 10 94 –41 53
Segment result (operating result) 620 333 282 83 1,318 –104 1,214
Interest income not classified as revenue 18 0 0 0 18 0 18
Interest expense (not part of the operating
result) –1 0 0 – –1 –2 –3
Result from the measurement of derivative financial instruments and hedged items (not
part of the operating result) 5 4 1 –1 9 13 22
Result from joint ventures accounted for using
the equity method – – – – – 77 77
Result from marketable securities and other
financial assets 5 3 – – 8 – 8
General and administrative expenses (not part
of the operating result) –2 0 0 0 –2 –6 –8
Other operating result (not part of the
operating result) –1 0 –12 – –13 – –13
Profit before tax 644 340 271 82 1,337 –22 1,315
Income tax income/expense –197 –108 –61 –24 –390 17 –373
Profit after tax 447 232 210 58 947 –5 942
Segment assets 38,128 22,466 8,447 6,540 75,581 812 76,393 of which non-current 23,707 12,497 4,122 3,796 44,122 – 44,122 Segment liabilities 45,833 20,124 7,864 6,051 79,872 –4,027 75,845
DIV I S IO N BY G EO G RA P H I CA L M A R KETS 20 1 4:
JAN. 1 – DEC. 31, 2014
€ million Germany Europe AmericaLatin Asia Pacific MAN FS segmentsTotal ciliationRecon- Group
Sales revenue from lending transactions with
third parties 922 964 1,035 682 25 3,628 57 3,685
Sales revenue from lending transactions
between the segments 87 0 – 0 0 87 –87 –
Segment sales revenue from lending
transactions 1,009 964 1,035 682 25 3,715 –30 3,685
Sales revenue from leasing and service contracts 6,813 3,897 82 243 701 11,736 –11 11,725
Premiums earned from insurance business – – – – – – 134 134
Commission income 296 146 127 5 2 576 21 597
Sales revenue 8,118 5,007 1,244 930 728 16,027 114 16,141
Cost of sales from lending, leasing and service
transactions –4,935 –2,951 –5 –67 –511 –8,469 – –8,469
Write-ups on leasing and rental assets as well as
investment property 1 0 – – 0 1 – 1
Depreciation and impairment losses on leasing
and rental assets as well as investment property –1,214 –561 –1 –155 –27 –1,958 – –1,958 of which impairment losses in accordance
with IAS 36 –63 –30 – –1 0 –94 – –94
Expenses from the insurance business – – – – – – –89 –89
Interest expense (part of the operating result) –410 –297 –538 –318 –56 –1,619 44 –1,575 Risk provisions arising from lending and
leasing business –78 –153 –124 –47 –32 –434 –35 –469
Commission expenses –189 –168 –68 –47 0 –472 6 –466
Result from the measurement of derivative financial instruments and hedged items (part of
the operating result) –4 – – – – –4 0 –4
General and administrative expenses (part of
the operating result) –758 –438 –189 –166 –105 –1,656 –227 –1,883
Other operating result (part of the
operating result) 31 –2 29 23 11 92 –28 64
Segment result (operating result) 562 437 348 153 8 1,508 –215 1,293
Interest income not classified as revenue 14 0 0 0 – 14 1 15
Interest expense (not part of the
operating result) –1 0 0 – – –1 –3 –4
Result from the measurement of derivative financial instruments and hedged items (not
part of the operating result) –3 –11 –1 1 0 –14 7 –7
Result from joint ventures accounted for using
the equity method – – – – 1
1
33 34
Result from marketable securities and other
financial assets 0 3 – – 2
5
2 7
General and administrative expenses (not part
of the operating result) –3 0 0 0 0 –3 –6 –9
Other operating result (not part of the
operating result) –1 0 –11 – 0 –12 – –12
Profit before tax 568 429 336 154 11 1,498 –181 1,317
Income tax income/expense –199 –111 –97 –48 –6 –461 41 –420
Profit after tax 369 318 239 106 5 1,037 –140 897
Segment assets 41,089 26,932 8,747 10,596 1,842 89,206 366 89,572 of which non-current 25,743 15,499 4,197 6,823 988 53,250 – 53,250 Segment liabilities 51,714 24,175 7,853 9,307 3,355 96,404 –8,594 87,810