Net Assets and Financial Position

(Condensed, in accordance with the German Commercial Code)

Total assets amounted to €225.2 billion on December 31, 2022, up €38.9 billion on the comparative 2021 figure. Intangible assets and property, plant and equipment were up by €0.3 billion, with capital expenditure exceeding depreciation and amortization charges. Financial assets rose to €138.9 (127.6) billion as a result of a number of capital increases, including a capital increase at Porsche Holding Stuttgart GmbH, Stuttgart, in the amount of €2.8 billion in connection with the IPO of Dr. Ing. h.c. F. Porsche AG, Stuttgart. To finance the acquisition of Europcar by Green Mobility Holding S.A., Strassen, Volkswagen AG paid contributions of €1.7 billion to the capital reserves of Volkswagen Finance Luxemburg S.A., Strassen (VFL). In addition, Volkswagen AG paid contributions of €0.9 billion to finance several capital increases by VFL at Volkswagen do Brasil Indústria de Veículos Automotores Ltda., São Bernardo do Campo. In addition, a capital increase of €1.7 billion was implemented at Porsche Siebte Vermögensverwaltung GmbH, Wolfsburg, to finance the creation of battery cell production by PowerCo SE, Salzgitter.

Fixed assets accounted for a share of 65.9 (73.5) % of total assets.

Current assets (including prepaid expenses) amounted to €76.7 (49.4) billion as of December 31, 2022. Inventories went up by €0.9 billion to €7.8 billion. In particular finished goods and merchandise were higher than in the previous year because of a shortage of transport capacity. Receivables and other assets rose to €59.7 (32.3) billion. Their rise is attributable to higher receivables from profit transfers from subsidiaries and an increase in time deposits with maturities of more than three months without call right. Cash instruments were down, driven particularly by the decrease in restricted short-term time deposits.

Equity at the end of the reporting year was €40.3 billion; the decrease was primarily due to earnings-related factors. The equity ratio was 17.9 (22.1) %.

Other provisions decreased by €1.6 billion to €17.7 (19.2) billion, due mainly to the reduction in provisions for litigation risks and sales-related provisions. Provisions for pensions rose by €4.0 billion to €25.3 billion, particularly as a result of a change in measurement inputs, while provisions for taxes decreased by €1.4 billion to €3.4 billion.

The €38.8 billion increase in liabilities, including deferred income, to €138.6 billion was mainly the result of higher loan liabilities to affiliated companies and of liabilities for the special dividend in connection with the IPO of Dr. Ing. h.c. F. Porsche AG, Stuttgart.

Volkswagen AG’s cash funds, comprising cash instruments with a maturity of less than three months, less bank liabilities repayable on demand and cash pooling liabilities, improved year-on-year from €−2.1 billion to €−1.0 billion. The interest-bearing portion of debt amounted to €107.7 (84.3) billion. In our assessment, given the context created by political and economic developments in 2022, the limited parts availability and disruptions in the logistics chain, the economic position of Volkswagen AG is challenging, but just as positive overall as that of the Volkswagen Group.