Net Assets and Financial Position

(CONDENSED, IN ACCORDANCE WITH THE GERMAN COMMERCIAL CODE)

Total assets amounted to €210.1 billion on December 31, 2024, up €12.3 billion on the comparative 2023 figure. Intangible assets and property, plant and equipment were up by €1.0 billion because investments exceeded depreciation and amortization charges. Financial assets rose to €154.0 (145.5) billion as a result of a number of capital increases.

Under a “pay-out-and-reinvest” transaction, Volkswagen Finance Luxemburg S.A., Strassen, (Volkswagen Finance Luxemburg) distributed dividends of €3.9 billion to Volkswagen AG, which Volkswagen AG simultaneously reinvested in Volkswagen Finance Luxemburg in the form of a capital increase. The Volkswagen Group and the US electric vehicle manufacturer Rivian Automotive, Inc., Irvine/USA (Rivian), announced their intention to establish a joint venture in June 2024. After reaching technical milestones and obtaining the necessary official approvals, Rivian and VW Group Technology, LLC, Palo Alto/USA (Rivian and Volkswagen Group Technologies) commenced activities on November 13, 2024. In this context, Volkswagen AG made a contribution of €1.0 billion to the capital reserves of Volkswagen International America Inc., Wilmington/USA, in the reporting year. In fiscal year 2024, Volkswagen AG acquired the shares of Scout Motors Inc., Tysons/USA, from Volkswagen Finance Luxemburg for €0.6 billion. To finance the restructuring under company law of the Volkswagen financial services companies, Volkswagen AG made a contribution of €250 million to the share capital and a contribution of €277 million to the to other capital reserves of Volkswagen Financial Services AG, Braunschweig, in the reporting year.

Fixed assets accounted for a share of 78.6 (78.7)% of total assets.

Current assets (including prepaid expenses) amounted to €44.9 (42.1) billion as of December 31, 2024. Inventories were up by €0.1 billion to €6.8 billion. The decrease in raw materials, consumables and supplies is attributable to lower precious metal inventories, the recognition of valuation allowances on barrier material and the decline in inventories of battery modules. Finished goods and merchandise rose by €0.3 billion compared with December 31, 2023, mainly because of the start of production of the New Transporter. Receivables and other assets rose to €30.8 (28.3) billion. This was attributable to the increase in trade receivables from affiliated companies, receivables from loans and dividend receivables. Cash instruments were up, driven particularly by the decrease in restricted short-term time deposits at the reporting date.

Equity at the end of the reporting year was €42.8 (42.2) billion. The equity ratio was 20.4 (21.3)%.

Other provisions rose by €1.0 billion to €18.1 (17.1) billion, largely due to higher provisions for procurement and personnel matters. Provisions for pensions fell by €1.6 billion to €23.0 billion, particularly as a result of a change in measurement inputs, and provisions for taxes decreased by €0.4 billion to €2.1 billion. It was found during the reporting year that obligations for granting fringe benefits had not been included in full when determining a provision for time asset credits. Provisions of €1.0 billion were recognized for this purpose, including €1.0 billion for rights acquired in previous years.

The €12.7 billion increase in liabilities, including deferred income, to €124.1 billion was mainly due to higher loan liabilities to affiliated companies and higher liabilities to affiliated companies from loss absorption.

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, improved year-on-year from €−4.4 billion to €−2.7 billion. The interest-bearing portion of debt amounted to €102.0 (92.3) billion. In our assessment, against the backdrop of political and economic developments in 2024 as well as intensifying competition in the automotive industry, the economic position of Volkswagen AG is challenging, but just as solid overall as that of the Volkswagen Group.