Question

collect or make financial statements of volkswagen company by estimating or assuming the numbers, project pro forma statements and derive Free cash flow

Answer 1

Ans-

Income Statement of the Volkswagen Group for the period January 1 to December 2019

€ million		Note		2019		2018
Sales revenue		1		252,632		235,849
Cost of sales		2		−203,490		−189,500
Gross result				49,142		46,350
Distribution expenses		3		−20,978		−20,510
Administrative expenses		4		−9,767		−8,819
Other operating income		5		11,453		11,631
Other operating expenses		6		−12,890		−14,731
Operating result				16,960		13,920
Share of the result of equity-accounted investments		7		3,349		3,369
Interest income		8		910		967
Interest expenses		8		−2,524		−1,547
Other financial result		9		−339		−1,066
Financial result				1,396		1,723
Earnings before tax				18,356		15,643
Income tax income/expense		10		−4,326		−3,489
Current				−4,147		−3,533
Deferred				−180		43
Earnings after tax				14,029		12,153
of which attributable to
Noncontrolling interests				143		17
Volkswagen AG hybrid capital investors				540		309
Volkswagen AG shareholders				13,346		11,827
Basic/diluted earnings per ordinary share in €		11		26.60		23.57
Basic/diluted earnings per preferred share in €		11		26.66		23.63

Statement of Comprehensive Income

Changes in comprehensive income for the period January 1 to December 31, 2018
€ million		Total		Equity attributable to Volkswagen AG shareholders		Equity attributable to Volkswagen AG hybrid capital investors		Equity attributable to noncontrolling interests
Earnings after tax		12,153		11,827		309		17
Pension plan remeasurements recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income, before tax		144		145		–		−1
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income		−88		−88		–		0
Pension plan remeasurements recognized in other comprehensive income, net of tax		56		57		–		−1
Fair Value valuation of other participations and securities (equity instruments) that will not be reclassified to profit or loss, net of tax		19		19		–		–
Share of other comprehensive income of equity-accounted investments that will not be reclassified to profit or loss, net of tax		34		34		–		–
Items that will not be reclassified to profit or loss		110		110		–		−1
Exchange differences on translating foreign operations
Gains/losses on currency translation recognized in other comprehensive income		−406		−406		–		1
Transferred to profit or loss		61		61		–		0
Exchange differences on translating foreign operations, before tax		−345		−345		–		1
Deferred taxes relating to exchange differences on translating foreign operations		−8		−8		–		–
Exchange differences on translating foreign operations, net of tax		−353		−353		–		1
Hedging
Fair value changes recognized in other comprehensive income (OCI I)		−568		−568		–		0
Transferred to profit or loss (OCI I)		−1,939		−1,939		–		0
Cash flow hedges (OCI I), before tax		−2,506		−2,506		–		0
Deferred taxes relating to cash flow hedges (OCI I)		715		715		–		0
Cash flow hedges (OCI I), net of tax		−1,792		−1,791		–		0
Fair value changes recognized in other comprehensive income (OCI II)		−1,360		−1,360		–		–
Transferred to profit or loss (OCI II)		377		377		–		–
Cash flow hedges (OCI II), before tax		−983		−983		–		–
Deferred taxes relating to cash flow hedges (OCI II)		291		291		–		–
Cash flow hedges (OCI II), net of tax		−692		−692		–		–
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss
Fair value changes recognized in other comprehensive income		−5		−5		–		–
Transferred to profit or loss		1		1		–		–
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss, before tax		−4		−4		–		–
Deferred taxes relating to fair value valuation of securities and receivables (debt instruments) recognized in other comprehensive income		1		1		–		0
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss, net of tax		−3		−3		–		0
Share of other comprehensive income of equity-accounted investments that may be reclassified to profit or loss, net of tax		28		28		–		–
Items that may be reclassified to profit or loss		−2,811		−2,812		–		0
Other comprehensive income, before tax		−3,612		−3,612		–		0
Deferred taxes relating to other comprehensive income		911		911		–		0
Other comprehensive income, net of tax		−2,701		−2,701		–		0
Total comprehensive income		9,452		9,126		309		17

Changes in comprehensive income for the period January 1 to December 31, 2019
€ million		Total		Equity attributable to Volkswagen AG shareholders		Equity attributable to Volkswagen AG hybrid capital investors		Equity attributable to noncontrolling interests
Earnings after tax		14,029		13,346		540		143
Pension plan remeasurements recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income, before tax		−8,011		−7,993		–		−18
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income		2,429		2,423		–		6
Pension plan remeasurements recognized in other comprehensive income, net of tax		−5,582		−5,570		–		−11
Fair Value valuation of other participations and securities (equity instruments) that will not be reclassified to profit or loss, net of tax		−27		−26		–		−1
Share of other comprehensive income of equity-accounted investments that will not be reclassified to profit or loss, net of tax		−3		−1		–		−2
Items that will not be reclassified to profit or loss		−5,612		−5,597		–		−15
Exchange differences on translating foreign operations
Gains/losses on currency translation recognized in other comprehensive income		572		565		–		7
Transferred to profit or loss		2		2		–		0
Exchange differences on translating foreign operations, before tax		574		567		–		7
Deferred taxes relating to exchange differences on translating foreign operations		12		12		–		–
Exchange differences on translating foreign operations, net of tax		586		579		–		7
Hedging
Fair value changes recognized in other comprehensive income (OCI I)		−1,622		−1,618		–		−4
Transferred to profit or loss (OCI I)		−782		−784		–		2
Cash flow hedges (OCI I), before tax		−2,404		−2,402		–		−2
Deferred taxes relating to cash flow hedges (OCI I)		708		707		–		1
Cash flow hedges (OCI I), net of tax		−1,697		−1,695		–		−1
Fair value changes recognized in other comprehensive income (OCI II)		−1,490		−1,490		–		0
Transferred to profit or loss (OCI II)		997		996		–		1
Cash flow hedges (OCI II), before tax		−493		−494		–		1
Deferred taxes relating to cash flow hedges (OCI II)		146		146		–		0
Cash flow hedges (OCI II), net of tax		−347		−348		–		1
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss
Fair value changes recognized in other comprehensive income		23		23		–		–
Transferred to profit or loss		1		1		–		–
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss, before tax		24		24		–		–
Deferred taxes relating to fair value valuation of securities and receivables (debt instruments) recognized in other comprehensive income		−7		−7		–		–
Fair value valuation of securities and receivables (debt instruments) that may be reclassified to profit or loss, net of tax		17		17		–		–
Share of other comprehensive income of equity-accounted investments that may be reclassified to profit or loss, net of tax		78		77		–		1
Items that may be reclassified to profit or loss		−1,363		−1,370		–		7
Other comprehensive income, before tax		−10,263		−10,248		–		−14
Deferred taxes relating to other comprehensive income		3,288		3,282		–		7
Other comprehensive income, net of tax		−6,974		−6,967		–		−8
Total comprehensive income		7,055		6,379		540		136