Annual Report 2023

Notes

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 non-cash expenditures (mainly depreciation, amortization and impairment losses) and income. Other non-cash income and expense results mainly from measurement effects in connection with financial instruments and 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 changes in investments in securities and time deposits as well as loans.

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 non-cash transactions and are therefore eliminated.

In the fiscal year, cash flows from operating activities include interest received amounting to €12,567 million (previous year: €8,504 million) and interest paid amounting to €7,011 million (previous year: €3,274 million). Cash flows from operating activities also include dividend payments (net of withholding tax) received from joint ventures and associates of €2,450 million (previous year: €2,781 million).

Dividends amounting to €10,897 million (previous year: €3,772 million) were paid to Volkswagen AG shareholders.

€ million

 

Dec. 31, 2023

 

Dec. 31, 2022

 

 

 

 

 

Cash and cash equivalents as reported in the balance sheet

 

43,449

 

29,172

Cash and cash equivalents held for sale

 

73

 

566

Cash and cash equivalents as reported in the cash flow statement

 

43,522

 

29,738

Time deposits with contractual maturities of more than three months are not classified as cash equivalents. 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, 2023

 

Cash-effective changes

 

Foreign exchange differences

 

Changes in consolidated Group

 

Classified as held for sale

 

Other changes

 

Dec. 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds

 

93,119

 

5,158

 

−304

 

 

 

1,183

 

99,157

Other total third-party borrowings

 

105,808

 

22,812

 

−855

 

626

 

−112

 

−1,116

 

127,162

Finance lease liabilities1

 

6,385

 

−1,190

 

−61

 

1

 

0

 

1,359

 

6,494

Total third-party borrowings

 

205,312

 

26,780

 

−1,220

 

626

 

−112

 

1,427

 

232,813

Other financial assets and liabilities

 

−61

 

−36

 

−1

 

15

 

 

92

 

9

Financial assets and liabilities in financing activities

 

205,250

 

26,744

 

−1,220

 

641

 

−112

 

1,519

 

232,822

1

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

 

 

 

 

 

 

NON – CASH CHANGES

 

 

€ million

 

Jan. 1, 2022

 

Cash-effective changes

 

Foreign exchange differences

 

Changes in consolidated Group

 

Classified as held for sale

 

Other changes

 

Dec. 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds

 

98,038

 

−1,762

 

−265

 

 

 

−2,892

 

93,119

Other total third-party borrowings

 

105,929

 

−4,210

 

174

 

842

 

−10

 

3,082

 

105,808

Finance lease liabilities1

 

6,245

 

−1,248

 

14

 

50

 

−2

 

1,325

 

6,385

Total third-party borrowings

 

210,213

 

−7,220

 

−78

 

892

 

−11

 

1,516

 

205,312

Other financial assets and liabilities

 

−21

 

−156

 

19

 

0

 

 

97

 

−61

Financial assets and liabilities in financing activities

 

210,192

 

−7,376

 

−59

 

892

 

−11

 

1,613

 

205,250

1

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