Net Assets and Financial Position

(Condensed, in accordance with the German Commercial Code)

Total assets amounted to €186.3 billion on December 31, 2021, up €1.8 billion on the comparative 2020 figure. Property, plant and equipment was up by €0.4 billion, with capital expenditure exceeding depreciation charges. The rise in financial assets to €127.6 (121.6) billion was primarily attributable to the reinvestment of the dividend distributed for fiscal year 2020 in the capital reserves of VW Finance Luxemburg S.A. in an amount of €3.2 billion as well as a number of capital increases at affiliated companies.

Fixed assets accounted for a share of 73.5 (70.7) % of total assets.

Current assets (including prepaid expenses) amounted to €49.4 (54.1) billion on December 31, 2021. Inventories went up due primarily to the addition of precious metals. Receivables decreased, mainly due to the repayment of loans to subsidiaries. Cash instruments increased, driven particularly by raising restricted short-term time deposits.

Equity at the end of the reporting year was €41.2 billion; the increase was primarily due to earnings-related factors. The equity ratio was 22.1 (21.4) %.

Other provisions decreased by €0.6 billion to €19.2 (19.9) billion, due mainly to the reduction in sales-related provisions. Provisions for pensions rose by €2.2 billion to €21.3 billion, particularly as a result of a change in measurement inputs, while provisions for taxes increased by €0.5 billion to €4.8 billion.

The €1.9 billion decrease in total liabilities (including deferred income) to €99.8 billion was primarily due to reduced liabilities to banks and lower liabilities from commercial paper.

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 €−5.1 billion to €−2.1 billion. The interest-bearing portion of debt amounted to €84.3 (89.8) billion. In our assessment, given the context created by the extensive and persistent negative impact of the spread of the SARS-CoV-2 virus and the limited vehicle availability due to the semiconductor shortage, the economic position of Volkswagen AG is just as positive overall as that of the Volkswagen Group.