Net Assets

Consolidated balance sheet structure

At the end of the reporting year, the Volkswagen Group had total assets of €600.3 billion, 6.4% more than at the end of 2022. Total assets as of the reporting date reflected the implementation of the new guidance on accounting for insurance contracts (IFRS 17), which led to a decrease in total assets and liabilities. A corresponding retrospective adjustment was made to the 2022 year-end figure. Equity was up by €11.6 billion to €189.9 billion, mainly because of the encouraging earnings. The equity ratio of 31.6 (31.6)% was on a level with the figure recorded at the end of the previous year.

On December 31, 2023, the Group had off-balance-sheet commitments in the form of contingent liabilities in the amount of €10.4 (10.6) billion and in the form of financial guarantees in the amount of €0.9 (1.2) billion. In addition, there were other financial obligations of €38.2 (35.4) 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 and services, irrevocable credit commitments to customers and from development and supply contracts. 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. Moreover, there are long-term purchase obligations under battery purchase agreements with Northvolt Group companies.

CONSOLIDATED BALANCE SHEET STRUCTURE 2023

in percent

Automotive Division balance sheet structure

The noticeable increase in the Automotive Division’s intangible assets at the end of 2023 as against December 31, 2022 was driven in particular by a rise in capitalized development costs. Property, plant and equipment was up slightly, with investments in property, plant and equipment set against lower depreciation. Equity-accounted investments declined for reasons that included dividend resolutions as well as impairment losses as a result of changes in share prices and in response to impairment tests. The intragroup reclassification of the equity investment in Europcar, which is held via Green Mobility Holding, to the Financial Services Division also contributed to this downturn. Noncurrent other receivables and financial assets decreased, due mainly to a decline in positive effects from the measurement of derivatives compared to year-end 2022. Total noncurrent assets amounted to €186.0 (178.7) billion, driven by higher volumes.

Current assets stood at €120.2 (122.7) billion on December 31, 2023, down from the prior-year figure. Current other receivables and financial assets went up, buoyed primarily by the volume-related rise in trade receivables. Total securities were down €10.7 billion to €22.2 billion, while cash and cash equivalents in the Automotive Division increased by €5.7 billion to €28.7 billion at the end of December 2023.

The “Assets held for sale” item comprises the carrying amounts of the assets of subsidiaries of Porsche earmarked for divestment, as well as assets of MAN Energy Solutions. The “Liabilities held for sale” item comprises the carrying amounts of the corresponding liabilities.

At €146.3 billion, the Automotive Division’s equity on December 31, 2023 was 7.6% higher than at the end of 2022. The main contributing factors were encouraging earnings in the reporting year and the green hybrid notes issued in August 2023. The dividend distributed to the shareholders of Volkswagen AG, adverse currency translation effects, higher actuarial losses from the remeasurement of pension plans because of the change in the discount rate, and the redemption of the hybrid note called as of September 2023 resulted in a reduction in equity. Noncontrolling interests, which increased noticeably, were mostly attributable to the noncontrolling interest shareholders of the Porsche AG Group and of the TRATON Group. The equity ratio climbed to 47.8 (45.1)%.

Noncurrent liabilities were on a level with the previous year, amounting to €86.9 (88.3) billion at the end of the reporting year. The noncurrent financial liabilities included in this item decreased, mainly because of reclassifications from noncurrent to current liabilities reflecting shorter remaining maturities. Pension provisions increased, driven primarily by actuarial remeasurement following a change in the discount rate.

At €73.1 (77.1) billion, current liabilities on December 31, 2023 were also down on the previous year. Current financial liabilities amounted to €−8.6 (−11.0) 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. Current other liabilities were down, primarily because of the special dividend, which was resolved in connection with the IPO of Porsche AG in December 2022 and distributed in January 2023. This was offset by the netting of the right to payment from Porsche SE arising from the second tranche of the ordinary shares of Porsche AG.

At the end of fiscal year 2023, the Automotive Division had total assets of €306.2 billion, 1.6% more than at the end of 2022.

Financial Services Division balance sheet structure

On December 31, 2023, the Financial Services Division’s total assets were €294.1 billion, 12.0% more than at the end of 2022. The figure as of the reporting date reflects the implementation of the new guidance on accounting for insurance contracts (IFRS 17), which led to a decrease in total assets and liabilities. A corresponding retrospective adjustment was made to the previous year-end figure.

Noncurrent assets grew to €174.7 (161.2) billion. The equity-accounted investments included in this item were up for reasons that included the intragroup transfer of the equity investment in Europcar, which is held via Green Mobility Holding to the Financial Services Division. Noncurrent financial services receivables were higher than in the prior-year period.

Current assets climbed by 17.8% to €119.4 billion. The current other receivables and financial assets included in this item were higher than at the end of 2022, due among other factors to the rise in trade receivables. At the end of fiscal year 2023, the Financial Services Division held cash and cash equivalents of €14.8 (6.1) billion. The “Assets held for sale” item comprises the carrying amounts of the assets of subsidiaries of Volkswagen Financial Services and Porsche earmarked for divestment. The “Liabilities held for sale” item comprises the carrying amounts of the corresponding liabilities.

On December 31, 2023, the Financial Services Division accounted for 49.0 (46.6)% of the Volkswagen Group’s assets.

Equity in the Financial Services Division stood at €43.6 billion at the end of 2023, 2.9% more than at the end of the previous year’s reporting date. The equity ratio dropped to 14.8 (16.1)%.

Noncurrent liabilities in the Financial Services Division increased to €117.7 (114.6) billion compared with December 31, 2022. The noncurrent financial liabilities included in this item increased. Current liabilities rose, driven above all by higher current financial liabilities. Other current liabilities and trade payables were likewise up on the previous year.

Deposits from the direct banking business amounted to €38.8 billion on December 31, 2023, compared with €26.7 billion at the end of 2022.