Net Assets and Financial Position

(Condensed, in accordance with the German Commercial Code)

Total assets amounted to €197.8 billion on December 31, 2023, down €27.5 billion on the comparative 2022 figure. Intangible assets and property, plant and equipment were up by €0.6 billion because investments exceeded depreciation and amortization charges. Financial assets rose to €145.5 (138.9) billion as a result of a number of capital increases.

To finance the restructuring of companies of Volkswagen Financial Services under company law, Volkswagen AG paid contributions of €3.8 billion to the capital reserves of Volkswagen Financial Services AG, Braunschweig, in the reporting year. To finance the capital requirements of CARIAD SE, Wolfsburg, Volkswagen AG paid contributions of €1.5 billion to the capital reserves of Porsche Siebte Vermögensverwaltung GmbH, Wolfsburg (Porsche Siebte). In addition, PowerCo SE, Salzgitter, made contributions of €0.6 billion to the capital reserves of Porsche Siebte to finance the set-up of battery cell production. To finance the acquisition of an investment in the electric vehicle company XPeng Inc., Cayman Islands, Volkswagen AG paid contributions of €0.7 billion to the capital reserves of Volkswagen Finance Luxemburg S.A., Strassen (Volkswagen Finance Luxembourg) in the reporting year. Also in the reporting year, Volkswagen AG paid further contributions totaling €0.5 billion to the capital reserves of Volkswagen Finance Luxembourg to finance the establishment of business operations at Scout Motors Inc., Arlington, Virginia. On June 7, 2023, the shareholders’ meeting of Volkswagen Vermögensverwaltungs-GmbH, Wolfsburg, resolved to reduce the company’s capital reserves by €0.7 billion, which was paid out to Volkswagen AG in the reporting year.

Fixed assets accounted for a share of 78.7 (65.9)% of total assets.

Current assets (including prepaid expenses) amounted to €42.1 (76.7) billion as of December 31, 2023. Inventories were down by €1.0 billion to €6.8 billion. In addition to the decrease in raw materials, consumables and supplies, which is largely attributable to a reduction in precious metals due to volume and price effects, finished goods and purchased merchandise in particular fell as transport capacity returned to normal levels. Receivables and other assets declined to €28.3 (59.8) billion. Their decrease is attributable to lower receivables from loans and receivables from profit transfers from subsidiaries and a decline 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 at the reporting date.

Equity at the end of the reporting year was €42.2 (40.3) billion. The equity ratio was 21.3 (17.9)%.

Other provisions decreased by €0.5 billion to €17.1 (17.7) billion, due mainly to the reduction in provisions for litigation risks and other provisions. Provisions for pensions fell by €0.7 billion to €24.6 billion, particularly as a result of a change in measurement inputs, and provisions for taxes decreased by €0.9 billion to €2.5 billion.

The €27.2 billion decrease in liabilities, including deferred income, to €111.4 billion was mainly the result of lower loan liabilities to affiliated companies and the liabilities for the special dividend in connection with the IPO of Porsche AG, Stuttgart, included in the prior-year figure.

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, deteriorated year-on-year from €−1.2 billion to €−4.4 billion. The interest-bearing portion of debt amounted to €92.3 (107.7) billion. In our assessment, given the context created by political and economic developments in 2023 and the transformation of the industry, the economic position of Volkswagen AG is challenging, but just as positive overall as that of the Volkswagen Group.