Audi 2015 Annual Report Download - page 230

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INFORMATION
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benefits of the remaining shares it does not own, this company
is included in the Consolidated Financial Statements on a
100 percent basis. The remaining shares in Italdesign Giugiaro
S.p.A., Turin (Italy) were acquired in July 2015. This company
has also been included on a 100 percent basis to date.
The principal companies within the Audi Group are listed
following the Notes.
The full list of companies in which shares are held, according
to commercial law, is recorded in the Commercial Register of
Ingolstadt under HR B 1 and is also available on the Audi web-
site at www.audi.com/subsidiaries. This list can additionally be
requested directly from AUDI AG, Financial Communication/
Financial Analysis, I/FF-3, 85045 Ingolstadt, Germany.
By virtue of their inclusion in the Audi Group’s Consolidated
Financial Statements, the following companies have fulfilled
the requirements of Section 264, Para. 3 or Section 264b of
the German Commercial Code (HGB) and make use of the
exemption rule:
>Audi Electronics Venture GmbH
>AUDI Immobilien GmbH & Co. KG
>quattro GmbH
// COMPOSITION OF THE AUDI GROUP
Total 2015 2014
AUDI AG and fully consolidated
subsidiaries/structured entities 42 44
of which in Germany 7 10
of which in foreign countries 35 34
Non-consolidated subsidiaries 31 34
of which in Germany 20 20
of which in foreign countries 11 14
Investments accounted for using the equity
method (in foreign countries) 4 3
Investments and joint ventures not accounted
for using the equity method 22 16
of which in Germany 16 14
of which in foreign countries 6 2
99 97
// PARTICIPATIONS IN ASSOCIATED COMPANIES
As of the balance sheet date, AUDI AG holds a 10 percent share
in FAW-Volkswagen Automotive Company, Ltd., Changchun, a
Chinese automotive manufacturer which, among other activities,
produces and distributes Audi brand vehicles for the Chinese
market. Through its representation in this company’s manage-
ment and supervisory board, AUDI AG is in a position to exercise
significant influence. AUDI AG also indirectly holds 30 percent
of Volkswagen Group Services S.A./N.V., Brussels (Belgium). This
is a finance company used by Audi for factoring transactions.
Audi also holds a 49 percent stake in Volkswagen Automatic
Transmission (Tianjin) Company Limited, Tianjin, a Chinese
manufacturer of transmission systems, including for Audi
models. The stake held in this company increased by 9 percent
during the fiscal year. The purchase price paid was EUR 127
million. As the acquisition involved a common control trans-
action, the predecessor method was applied, resulting in the
positive difference of EUR 13 million being adjusted against
equity, without affecting profit or loss.
The Audi Group, BMW Group and Daimler AG each acquired a
33.3 percent interest in There Holding B.V., Rijswijk (Nether-
lands), which was established in 2015. There Holding B.V.
acquired all shares in the HERE Group at a price of EUR 2,602
million via its fully owned subsidiary, There Acquisition B.V.,
Rijswijk (Netherlands) with effect from December 4, 2015.
HERE develops and distributes high-resolution maps with
location-specific real-time information. The purchase price was
largely financed through capital contributions at There Holding
B.V. The Audi stake amounts to EUR 668 million. The remain-
ing portion of the purchase price was financed by bank loans
taken out by There Acquisition B.V. There Acquisition B.V. was
renamed HERE International B.V. on January 29, 2016.
There Holding B.V. is an associated company consolidated using
the equity method. Given the close proximity to the balance
sheet date, it was not possible for all of the hidden reserves
and liabilities to be definitively identified, but this is expected
to be carried out in the first quarter of 2016. Against this
background and also for reasons of materiality, There Holding
B.V. was not consolidated as of the balance sheet date on the
basis of pro rata profit.
Further information on the previously described associated
companies, which are accounted for using the equity method,
is provided in Note 17.
/CONSOLIDATION PRINCIPLES
The assets and liabilities of the domestic and foreign compa-
nies included in the Consolidated Financial Statements are
recognized in accordance with the standard recognition and
measurement principles of the Audi Group.
In the case of subsidiaries that are being consolidated for the
first time, the assets and liabilities are to be measured at their
fair value at the time of acquisition. Any identified hidden
reserves and expenses are amortized, depreciated or reversed
in accordance with the development of the corresponding
assets and liabilities as part of the subsequent consolidation
process. Where the cost of purchase of a participation exceeds
the Group share in the equity of the relevant company as calcu-
lated in this manner, goodwill is created. This is then allocated