Obligation Volkswagon 0% ( XS1856798027 ) en EUR

Volkswagon

100 % ▼

Allemagne

XS1856798027 ( en EUR )

0%

16/07/2020 - Obligation échue

Prospectus brochure de l'obligation Volkswagen XS1856798027 en EUR 0%, échue

100 000 EUR

500 000 000 EUR

Volkswagen est un constructeur automobile allemand, l'un des plus grands fabricants mondiaux de véhicules, produisant un large éventail de voitures, de SUV et de véhicules utilitaires, sous plusieurs marques dont Audi, Porsche, Skoda et SEAT.

L'émission obligataire de type zéro-coupon, identifiée par le code ISIN XS1856798027, est une dette corporate émise par Volkswagen, le constructeur automobile mondial dont le siège est en Allemagne. En tant qu'acteur majeur de l'industrie automobile, réputé pour sa gamme diversifiée de marques et sa portée internationale, Volkswagen représente un émetteur de premier plan sur les marchés financiers. Cette obligation, libellée en euros (EUR) et d'une taille totale d'émission de 500 000 000, était caractérisée par un taux d'intérêt de 0%, signifiant qu'elle était conçue pour être achetée à un prix décoté et remboursée à sa valeur nominale à l'échéance. La maturité de ce titre était fixée au 16 juillet 2020, avec une fréquence de paiement unique à cette date, où son prix affiché était de 100% du nominal. Destinée principalement aux investisseurs institutionnels ou avertis, la taille minimale à l'achat était de 100 000. Conformément aux conditions d'émission, cette obligation est arrivée à maturité et a été intégralement remboursée, confirmant ainsi la bonne exécution de l'engagement de l'émetteur envers ses créanciers et la restitution complète du capital aux détenteurs.

Dated 26 June 2018

This document constitutes five base prospectuses for the purposes of Article 5.4 of Directive 2003/71/EC of the
European Parliament and the Council of 4 November 2003, as amended by Directive 2010/73/EU of the
European Parliament and of the Council of 24 November 2010 (the "Prospectus Directive"): (i) the base
prospectus of Volkswagen Financial Services Aktiengesel schaft in respect of non-equity securities within the
meaning of Art. 22 No. 6 (4) of the Commission Regulation (EC) No. 809/2004 of 29 April 2004, as amended (the
"Prospectus Regulation") ("Non-Equity Securities"), (ii) the base prospectus of Volkswagen Leasing GmbH in
respect of Non-Equity Securities, (iii) the base prospectus of Volkswagen Financial Services N.V. in respect of
Non-Equity Securities, (iv) the base prospectus of Volkswagen Financial Services Japan Ltd. in respect of Non-
Equity Securities and (v) the base prospectus of Volkswagen Financial Services Australia Pty Limited in respect
of Non-Equity Securities (together, the "Prospectus").

VOLKSWAGEN FINANCIAL SERVICES
AKTIENGESELLSCHAFT
Braunschweig, Federal Republic of Germany
Issuer and/or Guarantor

VOLKSWAGEN LEASING GMBH
Braunschweig, Federal Republic of Germany
Issuer

VOLKSWAGEN FINANCIAL SERVICES N.V.
Amsterdam, The Netherlands
Issuer

VOLKSWAGEN FINANCIAL SERVICES JAPAN LTD.
Tokyo, Japan
Issuer

VOLKSWAGEN FINANCIAL SERVICES AUSTRALIA PTY LIMITED
(ABN 20 097 071 460)
Sydney, Australia
Issuer

EUR 25,000,000,000
Debt Issuance Programme (the "Programme")

Arranger

UNICREDIT BANK

Dealers

BANCO BILBAO VIZCAYA
BARCLAYS
BAYERNLB
ARGENTARIA, S.A.
BNP PARIBAS
BofA MERRILL LYNCH
CITIGROUP
COMMERZBANK
CRÉDIT AGRICOLE CIB
DANSKE BANK A/S
DEUTSCHE BANK
GOLDMAN SACHS
HSBC
INTERNATIONAL
J.P. MORGAN
LANDESBANK BADEN-
MUFG
WÜRTTEMBERG
MIZUHO SECURITIES
NATWEST MARKETS
RBC CAPITAL MARKETS
SANTANDER GLOBAL
SOCIÉTÉ GÉNÉRALE
TD SECURITIES
CORPORATE BANKING
CORPORATE & INVESTMENT
BANKING

UNICREDIT BANK

Issuing Agent

CITIBANK, N.A.

- 2 -
Application has been made to the Commission de Surveil ance du Secteur Financier of the Grand Duchy of
Luxembourg (the "Commission") in its capacity as competent authority under the Luxembourg act relating to
prospectuses for securities (loi relative aux prospectus pour valeurs mobilières) (the "Luxembourg Prospectus
Law"), which implements the Prospectus Directive into Luxembourg law, for the approval of this Prospectus. The
Commission assumes no responsibility as to the economic and financial soundness of the transaction or the
quality or solvency of the Issuers and the Guarantor pursuant to Article 7 (7) of the Luxembourg Law on
Prospectuses for securities.

Application has been made to the Luxembourg Stock Exchange for notes (the "Notes") issued under this
Programme to be admitted to trading on the regulated market of the Luxembourg Stock Exchange (as defined
below) and to be listed on the official list of the Luxembourg Stock Exchange. Notes issued under the Programme
may also be listed and traded on an alternative stock exchange or may not be listed at all.

Each Issuer has requested the Commission to provide the competent authorities in the Federal Republic of
Germany, the Netherlands, the United Kingdom of Great Britain and Northern Ireland, the Republic of Ireland, and
the Republic of Austria with a certificate of approval attesting that the Prospectus has been drawn up in
accordance with the Luxembourg Prospectus Law ("Notification"). Each Issuer may request the Commission to
provide competent authorities in additional Member States within the European Economic Area with a Notification.

This Prospectus and any supplement thereto will be published in electronic form on the website of the
Luxembourg Stock Exchange (www.bourse.lu) and the website of Volkswagen Financial Services
Aktiengesel schaft (www.vwfs.com). This Prospectus is valid for a period of twelve months from its date of
approval.

- 3 -
Table of Contents
Page

Responsibility Statement ................................................................................................................................ 5
Notice ................................................................................................................................................................ 5
Summary ........................................................................................................................................................... 8
Section A Introduction and warnings ............................................................................................................... 8
Section B Issuer and any Guarantors .............................................................................................................. 9
Section C Securities ...................................................................................................................................... 19
Section D Risks ............................................................................................................................................. 23
Section E Offer .............................................................................................................................................. 30
German Translation of the Summary ............................................................................................................ 32
Abschnitt A Einleitung und Warnhinweise ..................................................................................................... 32
Abschnitt B Emittent und etwaige Garantiegeber .......................................................................................... 33
Abschnitt C Wertpapiere ................................................................................................................................ 44
Abschnitt D Risiken ....................................................................................................................................... 48
Abschnitt E Angebot ...................................................................................................................................... 57
Risk Factors .................................................................................................................................................... 58
Risk Factors regarding Volkswagen Financial Services Aktiengesellschaft ..................................................... 58
Risk Factors regarding Volkswagen Leasing GmbH ........................................................................................ 78
Risk Factors regarding Volkswagen Financial Services N.V. ........................................................................... 92
Risk Factors regarding Volkswagen Financial Services Japan Ltd................................................................. 100
Risk Factors regarding Volkswagen Financial Services Australia Pty Limited ................................................ 111
Risk Factors regarding the Notes ................................................................................................................... 123
Volkswagen Financial Services Aktiengesellschaft as Issuer and Guarantor ........................................ 129
Volkswagen Leasing GmbH as Issuer ........................................................................................................ 142
Volkswagen Financial Services N.V. as Issuer .......................................................................................... 146
Volkswagen Financial Services Japan Ltd. as Issuer ............................................................................... 150
Volkswagen Financial Services Australia Pty Limited as Issuer .............................................................. 152
General Description of the Programme ...................................................................................................... 155
1. General ....................................................................................................................................................... 155
2. Description of the Notes ............................................................................................................................. 156
3. Issue Procedures ........................................................................................................................................ 159
English Language Terms and Conditions .................................................................................................. 161
Option I Terms and Conditions for Notes with fixed interest rates ............................................................... 161
Option II Terms and Conditions for Notes with floating interest rates .......................................................... 180
Option III Terms and Conditions for Notes with fixed to floating interest rates ............................................ 202
Deutsche Fassung der Anleihebedingungen ............................................................................................. 226
Option I Anleihebedingungen für Schuldverschreibungen mit fester Verzinsung ........................................ 226
Option II Anleihebedingungen für Schuldverschreibungen mit variabler Verzinsung................................... 248
Option III Anleihebedingungen für Schuldverschreibungen mit fester zu variabler Verzinsung ................... 274
English Language Guarantee ...................................................................................................................... 302
Deutsche Fassung der Garantie .................................................................................................................. 304
Form of Final Terms ..................................................................................................................................... 306
PART I CONDITIONS
TEIL I BEDINGUNGEN ............................................................................................................................... 309
Option I Terms and Conditions for Notes with fixed interest rates
Option I Anleihebedingungen für Schuldverschreibungen mit fester Verzinsung ........................................ 310
Option II Terms and Conditions for Notes with floating interest rates
Option II Anleihebedingungen für Schuldverschreibungen mit variabler Verzinsung................................... 316

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Option III Terms and Conditions for Notes with fixed to floating interest rates
Option III Anleihebedingungen für Schuldverschreibungen mit fester zu variabler Verzinsung ................... 322
PART II OTHER INFORMATION
TEIL II WEITERE INFORMATIONEN .......................................................................................................... 329
Use of Proceeds ........................................................................................................................................... 339
Taxation ......................................................................................................................................................... 340
Subscription and Sale .................................................................................................................................. 357
General Information ..................................................................................................................................... 362
1. Listing and Admission to Trading ................................................................................................................ 362
2. Consent to use Prospectus......................................................................................................................... 362
3. Interest of Natural and Legal Persons involved in the Issue/Offer .............................................................. 362
4. Authorisations ............................................................................................................................................. 363
5. Documents on Display ................................................................................................................................ 363
6. Clearing Systems ....................................................................................................................................... 363
7. Ratings ....................................................................................................................................................... 364
8. Third party information ................................................................................................................................ 364
Documents Incorporated by Reference ...................................................................................................... 365
Address List .................................................................................................................................................. 371

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Responsibility Statement

Volkswagen Financial Services Aktiengesellschaft ("VWFSAG" or the "Guarantor", together with its consolidated
subsidiaries "VWFSAG Group") with its registered office in Braunschweig, Volkswagen Leasing GmbH
("VWLGMBH") with its registered office in Braunschweig, Volkswagen Financial Services N.V. ("VWFSNV") with
its registered office in Amsterdam, Volkswagen Financial Services Japan Ltd. ("VWFSJ") with its registered office
in Tokyo and Volkswagen Financial Services Australia Pty Limited ("VWFSAL", together with its consolidated
subsidiaries "VWFSAL Group") with its registered office in Chullora NSW 2190, Australia (each an "Issuer" and
together the "Issuers") accept responsibility for the information given in this Prospectus, provided that:

VWLGMBH is not responsible for the description of VWFSAG (p. 129 - p. 141), VWFSNV (p. 146 - p. 149) ,
VWFSJ (p. 150 - p. 151) and VWFSAL (p. 152 p. 154) including the Risk Factors regarding VWFSAG (p. 58 - p.
77), VWFSNV (p. 92 - p. 99), VWFSJ (p. 100 - p. 110) and VWFSAL (p. 111 - p. 122), the related parts of the
summary and the description of the guarantee of the Notes (p. 302- p. 303),

VWFSNV is not responsible for the description of VWFSAG (p. 129 - p. 141), VWLGMBH (p. 142 - p. 145) ,
VWFSJ (p. 150 - p. 151) and VWFSAL (p. 152 p. 154) including the Risk Factors regarding VWFSAG (p. 58 - p.
77), VWLGMBH (p. 78 - p. 91), VWFSJ (p. 100 - p. 110) and VWFSAL (p. 111 - p. 122), the related parts of the
summary and the description of the guarantee of the Notes (p. 302- p. 303),

VWFSJ is not responsible for the description of VWFSAG (p. 129 - p. 141), VWLGMBH (p. 142 - p. 145),
VWFSNV (p. 146 - p. 149) and VWFSAL (p. 152 p. 154) including the Risk Factors regarding VWFSAG (p. 58 -
p. 77), VWLGMBH (p. 78 - p. 91), VWFSNV (p. 92 - p. 99) and VWFSAL (p. 111 - p. 122), the related parts of the
summary and the description of the guarantee of the Notes (p. 302- p. 303),

VWFSAL is not responsible for the description of VWFSAG (p. 129 - p. 141), VWLGMBH (p. 142 - p. 145) ,
VWFSNV (p. 146 - p. 149) and VWFSJ (p. 150 - p. 151) including the Risk Factors regarding VWFSAG (p. 58 - p.
77), VWLGMBH (p. 78 - p. 91), VWFSNV (p. 92 - p. 99) and VWFSJ (p. 100 - p. 110), the related parts of the
summary and the description of the guarantee of the Notes (p. 302- p. 303).

Each Issuer hereby declares that, having taken all reasonable care to ensure that such is the case, the
information contained in this Prospectus for which it is responsible is, to the best of its knowledge, in accordance
with the facts and contains no omission likely to affect its import.

Notice

This Prospectus should be read and understood in conjunction with any supplement thereto and with any other
document incorporated herein by reference. Ful information on each Issuer and any Tranche of Notes is only
available on the basis of the combination of the Prospectus and the relevant final terms (the "Final Terms").

Each Issuer and the Guarantor have confirmed to the Dealers (as defined herein) that this Prospectus contains al
information with regard to the Issuers and the Notes which is material in the context of the Programme and the
issue and offering of Notes thereunder; that the information contained in the Prospectus is accurate and complete
in all material respects and is not misleading; that any opinions and intentions expressed herein are honestly held
and based on reasonable assumptions; that there are no other facts with respect to the Issuer, the Guarantor or
the Notes, the omission of which would make the Prospectus as a whole or any statement, whether fact or
opinion, in this Prospectus misleading in any material respect; and that al reasonable enquiries have been made
to ascertain all facts and to verify the accuracy of al statements contained herein.

No person has been authorised to give any information which is not contained in or not consistent with this
Prospectus or any other information supplied in connection with the Programme and, if given or made, such
information must not be relied upon as having been authorised by or on behalf of the Issuers, the Guarantor, the
Dealers or any of them.

This Prospectus is valid for twelve months following its date of approval and this Prospectus and any supplement
hereto as well as any Final Terms reflect the status as of their respective dates of issue. Notwithstanding that the
Issuers may be required to provide a supplement pursuant to Article 13 of the Luxembourg Prospectus Law, the
delivery of this Prospectus or any Final Terms and the offering, sale or delivery of any Notes may not be taken as
an implication that the information contained in such documents is accurate and complete subsequent to their
respective dates of issue or that there has been no adverse change in the financial situation of the Issuers and
the Guarantor since such date or that any other information supplied in connection with the Programme is
accurate at any time subsequent to the date on which it is supplied or, if different, the date indicated in the
document containing the same.

Each Issuer and the Guarantor have undertaken with the Dealers to supplement this Prospectus or publish a new
Prospectus in the event of any significant new factor, material mistake or inaccuracy relating to the information

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included in this Prospectus which is capable of affecting the assessment of the Notes and which arises or is noted
between the time when this Prospectus has been approved and the final closing of any Tranche of Notes offered
to the public or, as the case may be, when trading of any Tranche of Notes on a regulated market begins.

Neither the arranger as set forth on the cover page (the "Arranger") nor any Dealer nor any other person
mentioned in this Prospectus, excluding the Issuers, is responsible for the information contained in this
Prospectus or any supplement hereto, or any Final Terms or any other document incorporated herein by
reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none of these
persons accepts any responsibility for the accuracy and completeness of the information contained in any of
these documents.

The distribution of this Prospectus and any Final Terms and the offering, sale and delivery of Notes in certain
jurisdictions may be restricted by law. Persons into whose possession this Prospectus or any Final Terms come
are required to inform themselves about and observe any such restrictions. For a description of the restrictions
applicable in the United States of America, the European Economic Area, the United Kingdom, The Netherlands,
the Republic of Austria, Japan and Australia see "Subscription and Sale". In particular, the Notes have not been
and will not be registered under the United States Securities Act of 1933, as amended, and are subject to tax law
requirements of the United States of America; subject to certain exceptions, Notes may not be offered, sold or
delivered within the United States of America or to U.S. persons. This Prospectus may only be communicated or
caused to be communicated in circumstances in which Section 21(1) of the Financial Services and Markets Act
2000 ("FSMA") does not apply.

The language of the Prospectus is English. Where parts of the Prospectus are drafted in a bilingual format
reflecting both an English language version and a German language version the English language version shall
be the controlling language for reading and construing the contents of the Prospectus, provided that certain parts
of the Prospectus reflect documents which have been, or will be, executed as separate documents with the
German language version being controlling and binding. Consequently, in respect of the issue of any Tranche of
Notes under the Programme, the German language version of the Terms and Conditions may be controlling and
binding if so specified in the relevant Final Terms and in respect of the Guarantee, the German language version
is always controlling and binding.

This Prospectus may only be used for the purpose for which it has been published.

This Prospectus and any Final Terms may not be used for the purpose of an offer or solicitation by
anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it
is unlawful to make such an offer or solicitation.

This Prospectus, any supplements thereto and any Final Terms do not constitute an offer or an invitation
to subscribe for or purchase any of the Notes.

In connection with the issue of any Tranche of Notes under the Programme, the Dealer or Dealers (if any)
named as stabilisation manager(s) in the applicable Final Terms (or persons acting on behalf of any
stabilisation manager(s)) may over-allot Notes or effect transactions, outside Australia and on a market
operated outside of Australia, with a view to supporting the market price of the Notes at a higher level
than that which might otherwise prevail. However, stabilisation may not necessarily occur. Any
stabilisation action may begin on or after the date on which adequate public disclosure of the terms of
the offer of the relevant Tranche of Notes is made and, if begun, may cease at any time, but it must end
no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes and 60 days after
the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or over-allotment must
be conducted by the relevant stabilisation manager(s) (or person(s) acting on behalf of any stabilisation
manager(s)) in accordance with all applicable laws and rules.

EU Benchmark Regulation: Article 29 (2) statement on benchmarks

Amounts payable under the Notes may be calculated by reference to EURIBOR, which is provided by European
Money Markets Institute ("EMMI"), LIBOR, which is provided by ICE Benchmark Administration ("IBA") or any
other benchmark in each case as specified in the Final Terms. As at the date of this Prospectus, IBA appears and
EMMI does not appear on the register of administrators and benchmarks established and maintained by the
European Securities and Markets Authority ("ESMA") pursuant to article 36 of the Benchmark Regulation
(Regulation (EU) 2016/1011). As far as the Issuer is aware, the transitional provisions in Article 51 of the BMR
apply, such that EMMI is required to obtain authorisation or registration (or, if located outside the European Union,
recognition, endorsement or equivalence) by 1 January 2020 only.

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Product Governance

The Final Terms in respect of any Notes may include a legend entitled "MiFID II Product Governance" which will
outline the target market assessment in respect of the Notes and which channels for distribution of the Notes are
appropriate. Any person subsequently offering, sel ing or recommending the Notes (a "distributor") should take
into consideration the target market assessment; however, a distributor subject to MiFID II is responsible for
undertaking its own target market assessment in respect of the Notes (by either adopting or refining the target
market assessment) and determining appropriate distribution channels. A determination will be made in relation to
each issue about whether, for the purpose of the MiFID Product Governance rules under EU Delegated Directive
2017/593 (the "MiFID Product Governance Rules"), any Dealer subscribing for any Notes is a manufacturer in
respect of such Notes, but otherwise neither the Arranger nor the Dealers nor any of their respective affiliates will
be a manufacturer for the purpose of the MIFID Product Governance Rules.

In this Prospectus, al references to "EUR" are to the euro, the single currency of the member states participating
in the European Monetary Union, to "GBP" are to British pounds sterling, the official currency of the United
Kingdom, to "USD" are to U.S. dollar, the official currency of the United States of America, to "AUD" are to
Australian dol ar, the official currency of the Commonwealth of Australia and to "YEN" are to Japanese yen, the
official currency of Japan and to "TRY" are to Turkish Lira, the official currency of Turkey and the Turkish
Republic of Northern Cyprus.

Information relating to the diesel issue described herein with regards to Volkswagen Group is based on public
information and is subject to change. The Issuers and the Guarantor have not independently verified any such
information.

- 8 -
Summary
Summaries are made up of disclosure requirements known as `Elements'. These elements are numbered
in Sections A E (A.1 E.7).
This summary contains all the Elements required to be included in a summary for this type of
securities and Issuer. Because some Elements are not required to be addressed, there may be gaps in
the numbering sequence of the Elements.
Even though an Element may be required to be inserted in the summary because of the type of
securities and Issuer, it is possible that no relevant information can be given regarding the Element. In
this case a short description of the Element is included in the summary with the mention of "not
applicable".
[The following Summary contains options and blank spaces, marked by square brackets or bold
script, relating to the Notes that may be issued under the Prospectus. The summaries for the
individual issues of Notes will be included in the Final Terms and will contain only those options that
are relevant for the respective issue of Notes. In addition, the placeholders ("") contained in the
following Summary that are relevant for the particular issue will be completed in the summary for the
individual issue.]1
Section A Introduction and warnings
A.1
Warning that:
this Summary should be read as an introduction to the Prospectus;
any decision to invest in the Notes should be based on consideration of the Prospectus as a whole by
the investor;
where a claim relating to the information contained in the Prospectus is brought before a court, the
plaintiff investor might, under the national legislation of the Member States, have to bear the costs of
translating the Prospectus, before the legal proceedings are initiated; and
civil liability attaches only to the Issuer who has tabled the Summary including any translation thereof,
but only if the Summary is misleading, inaccurate or inconsistent when read together with the other
parts of the Prospectus or it does not provide, when read together with the other parts of the
Prospectus, key information in order to aid investors when considering whether to invest in the Notes.
A.2
Consent to the use of [Not applicable. No consent has been given.][The Issuer consents to the
the prospectus
use of the Prospectus by al credit institutions (general consent) and accepts
responsibility for the content of the Prospectus also with respect to
subsequent resale or final placement of the Notes by any credit institution
which was given consent to use the Prospectus, provided however, that the
Prospectus is still valid in accordance with Article 11 of the Luxembourg act
relating to prospectuses for securities (Loi relative aux prospectus pour
valeurs mobilières) which implements Directive 2003/71/EC of the European
Parliament and of the Council of 4 November 2003 (as amended by
Directive 2010/73/EU of the European Parliament and of the Council of 24
November 2010).
Such general consent for the subsequent resale or final placement of the
Notes by the credit institution is given in relation to public offers in
[Luxembourg][,] [and] [Germany][,] [and] [The Netherlands][,] [and] [the
United Kingdom][,] [and] [Ireland][,] [and] [Austria] (the "Offer State[s]")
only.
The subsequent resale or final placement of Notes by credit institutions can
be made during the period commencing from[, and including,] [specify
date] [to[, and including,] [specify date]] (the "Offer Period").
[Additionally, the Issuer may grant its consent to the use of the Prospectus

1
To be deleted for the summary of an individual issue of Notes.

- 9 -
for any resale or final placement of the relevant Notes in the Offer State[s]
until the end of such Offer Period to any financial intermediary (individual
consent), the name and address of which shal be published on the website
of Volkswagen Financial Services Aktiengesellschaft (www.vwfs.com).]
In the event of a public offer being made by a credit institution, this credit
institution will provide information to investors on the terms and conditions of
the offer at the time the offer is made.
Any credit institution using the Prospectus based on the general
consent for public offerings has to state on its website that it uses the
Prospectus in accordance with the consent and the conditions
attached thereto.]
Section B Issuer
[1.
Information relating to Volkswagen Leasing GmbH as Issuer
B.1
Legal and commercial Volkswagen Leasing GmbH ("VWLGMBH")
name
B.2
Domicile, legal form, Domicile
legislation, country of VWLGMBH's domicile is Braunschweig, Federal Republic of Germany.
incorporation
Legal form
Limited liability company (Gesel schaft mit beschränkter Haftung) under
German law.
Legislation
German law
Country of incorporation
VWLGMBH is incorporated in the Federal Republic of Germany.
B.4b
Known trends affecting The business development of VWLGMBH is closely linked to the
the Issuer and the development of sales of VW Group (as defined below). The development of
industries in which it the automotive sector remains dependent on the global economic
operates
development, which continues to be shrouded in considerable uncertainty.
The financial markets stil entail risks resulting above al from the strained
debt situation of many countries. The economic environment is expected to
remain uncertain and volatile in the upcoming months. Additional
requirements from increased regulations and legislations to prevent future
financial crises may materially affect VWLGMBH's business.
Various repercussions could result for VWFSAG Group and VWLGMBH
from the diesel issue. In turn, the diesel issue may have a negative impact
on the future business and financial results of VWLGMBH, the effect of
which remains uncertain.
B.5
Organisational Structure VWLGMBH is a wholly-owned subsidiary of Volkswagen Financial Services
Aktiengesel schaft, Braunschweig, Federal Republic of Germany
("VWFSAG"). The shares are held directly by VWFSAG. Parent company of
VWFSAG is Volkswagen Aktiengesellschaft, Wolfsburg, Federal Republic of
Germany ("VW AG or "Volkswagen AG""). VW AG is the controlling
company of the Volkswagen Group ("VW Group" or "Volkswagen Group"),
which consists of numerous subsidiaries and affiliates in the Federal
Republic of Germany and abroad.

B.9
Profit
forecasts
or Not applicable; VWLGMBH has not made any profit forecasts or estimates

- 10 -
estimates
in the Prospectus.
B.10
Qualifications in the Not applicable; there are no qualifications in the audit report of VWLGMBH
audit report
on its historical financial information.
B.12
Selected historical key The following table shows selected financial information of VWLGMBH
financial
information extracted from the published audited non-consolidated financial statements
regarding the Issuer, as at and for the financial years ended 31 December 2016 and 2017:
statement
regarding
trend information and
significant changes in Balance sheet data
the financial or trading
position of the Issuer

31 December 2017
31 December 2016

EUR 000

Total Assets
32,218,349
27,766,571
Lease assets
26,048,897
23,753,366
Equity
222,359
222,359
Liabilities
to
customers
13,482,960
12,704,760
Securitized liabilities
10,488,689
7,172,536

Income statement data

1 January 31 December

2017
2016

EUR 000
Leasing income
15,848,481
14,680,504
Leasing expenses
9,326,472
8,181,816
Result from ordinary
activities
525,354
-260,777
Net retained profits
649
649

There has been no material adverse change in the prospects of VWLGMBH
since the date of its last published audited non-consolidated financial
statements as at 31 December 2017.
The diesel issue as well as other expenses or provisions in connection with
diesel vehicles, including but not limited to residual values of cars may have
a negative impact on the future business and financial performance of
VWLGMBH, the effect of which remains uncertain.
Additionally, increased litigation and legal risks, including but not limited to
the area of consumer credit law, which would be reflected in corresponding
provisions as well as geopolitical tensions and conflicts, protectionist
tendencies, turmoil in the financial markets, structural deficits in individual
countries, as well as uncertainty regarding future developments in the euro
area may affect the operating profit and financial performance of
VWLGMBH.