Notes

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35 Cash flow statement

Cash flows are presented in the cash flow statement classified into cash flows from operating activities, investing activities and financing activities, irrespective of the balance sheet classification.

Cash flows from operating activities are derived indirectly from earnings before tax. Earnings before tax are adjusted to eliminate noncash expenditures (mainly depreciation, amortization and impairment losses) and income. Other noncash income and expense results mainly from measurement effects in connection with financial instruments and to fair value changes relating to hedging transactions. This results in cash flows from operating activities after accounting for changes in working capital, which also include changes in lease assets and in financial services receivables.

Investing activities include additions to property, plant and equipment and equity investments, additions to capitalized development costs and investments in securities, loans and time deposits.

Financing activities include outflows of funds from dividend payments and the redemption of bonds, inflows from capital increases and the issuance of bonds, and changes in other financial liabilities. Please refer to the “Equity” section for information on the in-/outflows from the issuance/repayment of hybrid capital contained in the capital contributions.

The changes in balance sheet items that are presented in the cash flow statement cannot be derived directly from the balance sheet, as the effects of currency translation and changes in the consolidated Group are noncash transactions and are therefore eliminated.

In the fiscal year, cash flows from operating activities include interest received amounting to €7,188 million (previous year: €7,192 million) and interest paid amounting to €2,471 million (previous year: €2,677 million). Cash flows from operating activities also include dividend payments (net of withholding tax) received from joint ventures and associates of €2,960 million (previous year: €3,098 million).

Dividends amounting to €2,419 million (previous year: €2,419 million) were paid to Volkswagen AG shareholders.

€ million

 

Dec. 31, 2021

 

Dec. 31, 2020

 

 

 

 

 

Cash, cash equivalents and time deposits as reported in the balance sheet

 

39,723

 

33,909

Cash and cash equivalents held for sale

 

85

 

Time deposits

 

–686

 

–477

Cash and cash equivalents as reported in the cash flow statement

 

39,123

 

33,432

Time deposits are not classified as cash equivalents. Time deposits have a contractual maturity of more than three months. The maximum default risk corresponds to its carrying amount.

The following table shows the classification of changes in financial liabilities into cash and non-cash transactions:

 

 

 

 

 

 

NON-CASH CHANGES

 

 

€ million

 

Jan. 1, 2021

 

Cash-effective changes

 

Foreign exchange differences

 

Changes in consolidated Group

 

Classified as held for sale

 

Other changes

 

Dec. 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds

 

92,626

 

2,102

 

1,239

 

1,942

 

 

129

 

98,038

Other total third-party borrowings

 

104,707

 

–3,954

 

3,074

 

1,784

 

–11

 

306

 

105,929

Finance lease liabilities1

 

6,124

 

–1,246

 

162

 

132

 

13

 

1,087

 

6,245

Total third-party borrowings

 

203,457

 

–3,097

 

4,475

 

3,859

 

2

 

1,522

 

210,213

Other financial assets and liabilities

 

21

 

26

 

0

 

 

 

–69

 

–21

Financial assets and liabilities in financing activities

 

203,478

 

–3,071

 

4,476

 

3,859

 

2

 

1,453

 

210,192

1

Other changes in lease liabilities largely contain non-cash additions of lease liabilities.

 

 

 

 

 

 

NON-CASH CHANGES

 

 

€ million

 

Jan. 1, 2020

 

Cash-effective changes

 

Foreign exchange differences

 

Changes in consolidated Group

 

Other changes

 

Dec. 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds

 

88,629

 

5,366

 

–979

 

 

–389

 

92,626

Other total third-party borrowings

 

106,630

 

3,404

 

–5,638

 

267

 

44

 

104,707

Finance lease liabilities1

 

6,210

 

–1,100

 

–195

 

39

 

1,170

 

6,124

Total third-party borrowings

 

201,468

 

7,670

 

–6,812

 

306

 

825

 

203,457

Other financial assets and liabilities

 

–81

 

172

 

132

 

 

–202

 

21

Financial assets and liabilities in financing activities

 

201,387

 

7,843

 

–6,680

 

306

 

622

 

203,478

1

Other changes in lease liabilities largely contain non-cash additions of lease liabilities.