Net Assets and Financial Position

Total assets amounted to €167.9 billion on December 31, 2019, down €8.5 billion on the prior-year figure. Property, plant and equipment was up by €0.6 billion, with capital expenditure exceeding depreciation charges. Financial assets were on a level with the prior year at €112.8 (112.8) billion.

Fixed assets accounted for a share of 72.0 (67.9)% of total assets.

Current assets (including prepaid expenses) amounted to €47.0 (56.6) billion on December 31, 2019.

At the end of the reporting period, equity was at €35.6 billion; the increase was due particularly to the positive net income for the year. The equity ratio was 21.2 (18.8)%.

Other provisions increased by €1.3 billion to €21.4 (20.0) billion, due in part to the additional provisions in connection with the diesel issue. Provisions for pensions and similar obligations rose by €1.7 billion to €17.8 billion, primarily as a result of a change in measurement inputs, while provisions for taxes increased by €0.1 billion to €3.8 billion.

The €14.2 billion decrease in total liabilities (including deferred income) to €89.2 billion is attributable primarily to lower 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, deteriorated year-on-year from €−0.2 billion to €−7.6 billion. The interest-bearing portion of debt amounted to €78.2 (87.9) billion. In our assessment, the economic position of Volkswagen AG is just as positive overall as that of the Volkswagen Group.