Net Assets

Consolidated balance sheet structure

On December 31, 2022, the Volkswagen Group had total assets of €564.8 billion, 6.8% more than at the end of 2021. The increase was mainly attributable to the proceeds of the successful IPO of Porsche AG, higher earnings and changes in exchange rates. A chart showing the structure of the consolidated balance sheet as of the reporting date can be found in this chapter. The Volkswagen Group’s equity rose by €32.2 billion to €178.3 billion. The IPO of Porsche AG led to a €19.1 billion rise in equity, of which €10.8 billion is reported as noncontrolling interests. The equity ratio increased to 31.6 (27.6)%.

As of the end of fiscal year 2022, the Group had off-balance-sheet commitments in the form of contingent liabilities in the amount of €10.6 (9.7) billion and in the form of financial guarantees in the amount of €1.2 (1.4) billion. In addition, there were other financial obligations of €35.4 (34.7) billion. The contingent liabilities relate primarily to legal risks in connection with the diesel issue, as well as to potential liabilities from tax risks in the Commercial Vehicles Business Area in Brazil. Other financial obligations primarily result from purchase commitments for property, plant and equipment, irrevocable credit commitments to customers and from development and supply contracts. They also include commitments to invest in the infrastructure for zero-emission vehicles and in initiatives to promote access to and awareness of this technology. These commitments were made as part of the settlement agreements in the USA in connection with the diesel issue. The other financial obligations include an amount of €0.5 (0.7) billion for this purpose. In addition to the other financial obligations, there are purchase commitments for inventories with a short turnover period, which arise primarily from the Master Collaboration Agreement with Ford Motor Company for the joint development of vans and mid-sized pickups for the global market.

CONSOLIDATED BALANCE SHEET STRUCTURE 2022

in percent

Automotive Division balance sheet structure

As of December 31, 2022, intangible assets in the Automotive Division were up on the previous year, driven primarily by a rise in capitalized development costs. Property, plant and equipment was on a level with the previous year. Equity-accounted investments were likewise virtually unchanged compared to the previous year’s balance sheet date. The increase attributable to capital increases, in particular at Green Mobility Holding, and the positive results of the Chinese joint venture companies were offset by the dividends of the joint ventures resolved in fiscal year 2022 and the impairment loss recognized on the equity investment in Argo AI. Noncurrent other receivables and financial assets increased, due mainly to positive effects from the measurement of derivatives. In total, noncurrent assets ended the year at €178.7 (170.4) billion and therefore higher than at the end of 2021.

Current assets rose by €21.2 billion compared with the figure at the end of 2021, to €122.8 billion. The inventories included in this figure increased, primarily for production-related reasons, and were attributable, among other factors, to disruptions in the logistics chain. Current other receivables and financial assets stood at €18.8 billion – €0.5 billion more than at the end of 2021. The figure included higher trade receivables and positive effects from the measurement of derivatives.

The Automotive Division’s cash and cash equivalents contracted by €2.5 billion to €23.0 billion. Total securities amounted to €32.9 billion, thus exceeding the figure as of December 31, 2021 by €15.2 billion.

The “Assets held for sale” item comprises primarily the carrying amounts of the assets intended for derecognition of subsidiaries of Volkswagen Financial Services and Porsche in Russia that are planned to be divested as well as assets of MAN Energy Solutions. The “Liabilities held for sale” item comprises the carrying amount of the corresponding liabilities intended for derecognition.

At the end of December 2022, the Automotive Division’s equity of €135.9 billion was 24.7% up on the end of 2021. The proceeds from the successful IPO of Porsche AG, healthy earnings performance, lower actuarial losses from the remeasurement of pension plans and the hybrid notes issued in March 2022 pushed equity higher. The dividend payment in May 2022 and the special dividend to shareholders of Volkswagen AG resolved by the extraordinary General Meeting as well as the redemption of the hybrid notes called in February and November 2022 reduced the Automotive Division’s equity. Noncontrolling interests went up as a result of the sale of shares in Porsche AG. They are now primarily held by the noncontrolling interest shareholders of the Porsche AG Group and the TRATON Group. The equity ratio was 45.1 (40.1)%.

Noncurrent liabilities decreased by €10.6 billion to €88.3 billion. The noncurrent financial liabilities included in this item were lower than at the end of 2021, mainly because of reclassifications from noncurrent to current liabilities reflecting shorter remaining maturities. Pension provisions decreased, driven primarily by actuarial remeasurement following a change in the discount rate. Noncurrent other liabilities went up, due among other things to the effects of the measurement of derivatives.

Current liabilities increased by €13.2 billion to €77.2 billion. Current financial liabilities amounted to €−11.0 (−10.2) billion. The figures for the Automotive Division also contain the elimination of intragroup transactions between the Automotive and Financial Services divisions. As the current financial liabilities for the primary Automotive Division were lower than the loans granted to the Financial Services Division, a negative amount was disclosed in both periods. Trade payables were up by 24.5% compared with the end of 2021. Current other liabilities exceeded the figure as of December 31, 2021, driven primarily by the special dividend, which was resolved in December 2022 and paid in January 2023. An offsetting transaction was the netting of the payment claim from the second tranche of the ordinary shares of Porsche AG.

At the end of the reporting year, the Automotive Division reported total assets of €301.4 billion, 10.8% more than at the end of 2021.

Financial Services Division balance sheet structure

At €263.4 billion, the Financial Services Division’s total assets on December 31, 2022 were 2.6% higher than a year earlier.

Noncurrent assets rose to €161.8 billion, up 2.5% compared with the end of 2021; the lease assets included in this item expanded mainly due to exchange rate movements. Noncurrent financial services receivables increased, driven by business growth; noncurrent other receivables were also up on the previous year.

Current assets climbed by 2.8% to €101.6 billion. The current financial services receivables included in this item went up, as did current other receivables and financial assets, buoyed among other factors by the rise in trade receivables. The Financial Services Division’s cash and cash equivalents stood at €6.1 (14.2) billion on December 31, 2022. Total securities were €0.5 billion lower, at €4.3 billion.

On December 31, 2022, the Financial Services Division accounted for 46.6 (48.6)% of the Volkswagen Group’s assets.

The Financial Services Division’s equity at the end of 2022 was €42.4 billion, exceeding the figure on the 2021 reporting date by 14.2%. The equity ratio increased to 16.1(14.5)%.

The Financial Services Division’s noncurrent liabilities were down 3.4% as of the balance sheet date. The noncurrent financial liabilities included in this item saw a noticeable decline, while noncurrent other liabilities rose sharply, driven by adverse effects from the measurement of derivatives. Current liabilities were higher, driven above all by noticeable growth in current financial liabilities.

Deposits from the direct banking business amounting to €26.7 (26.7) billion were on a level with the previous year.