Net Assets and Financial Position

Total assets amounted to €176.4 billion on December 31, 2018, up €19.7 billion  on the prior-year figure. Property, plant and equipment was down by €0.2 billion, capital expenditure was lower than depreciation charges. Financial assets increased, driven in particular by capital increases at Volkswagen Finance Luxemburg S.A. (€2.7 billion), Volkswagen Klassik GmbH (€2.3 billion) and Porsche Holding Stuttgart GmbH (€0.9 billion) and by the increased stake in Volkswagen Klassik GmbH recognized directly in equity due to an intragroup reorganization (€2.6 billion). Particularly the capital decrease of €3.3 billion implemented at TRATON SE (formerly TRATON AG) had an offsetting effect.

Fixed assets accounted for a share of 67.9 (72.6)% of total assets.

Current assets (including prepaid expenses) amounted to €56.6 (43.0) billion on December 31, 2018.

At €33.1 billion, equity increased due in particular to the improved net income for the year at the end of the reporting period. The equity ratio was 18.8 (19.4)%.

Other provisions decreased by €2.1 billion to €20.0 (22.1) billion, due primarily to the utilization of provisions in connection with the diesel issue. Provisions for pensions and similar obligations rose by €1.8 billion to €16.1 billion, primarily as a result of a change in measurement inputs, while provisions for taxes increased by €0.2 billion to €3.7 billion.

The €17.1 billion rise in total liabilities (including deferred income) to €103.4 billion is, above all, attributable to higher liabilities to affiliated companies.

Volkswagen AG’s cash funds, comprising cash instruments with a maturity of less than three months, less bank and cash pooling liabilities repayable on demand, improved year-on-year from €−8.5 billion to €−0.2 billion. The interest-bearing portion of debt amounted to €87.9 (74.0) billion. In our assessment, the economic position of Volkswagen AG is just as positive overall as that of the Volkswagen Group.