Net Assets and Financial Position

Total assets amounted to €184.5 billion on December 31, 2020, up €16.6 billion on the prior-year figure. Property, plant and equipment was up by €0.6 billion, with capital expenditure exceeding depreciation charges. The rise in financial assets to €121.6 (112.8) billion was mainly the result of an increase in shares held in affiliated companies.

Fixed assets accounted for a share of 70.7 (72.0)% of total assets.

Current assets (including prepaid expenses) amounted to €54.1 (47.0) billion on December 31, 2020. Inventories went up due primarily to the addition of precious metals. Receivables were higher, mainly because of financing provided to subsidiaries. Cash instruments increased, driven mostly by raising restricted short-term time deposits.

At the end of the reporting period, equity was at €39.5 billion; the increase was due particularly to the positive net income for the year. The equity ratio was 21.4 (21.2)%.

Other provisions decreased by €1.5 billion to €19.9 (21.4) billion due mainly to the utilization of provisions in connection with the diesel issue. Provisions for pensions and similar obligations rose by €1.2 billion to €19.0 billion, primarily as a result of a change in measurement inputs, while provisions for taxes increased by €0.5 billion to €4.3 billion.

The €12.5 billion increase in total liabilities (including deferred income) to €101.7 billion is attributable primarily to higher liabilities to affiliated companies.

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 €−7.6 billion to €−5.1 billion. The interest-bearing portion of debt amounted to €89.8 (78.2) billion. In our assessment, given the context created by the extensive and persistent negative impact of the spread of the SARS-CoV-2 virus, the economic position of Volkswagen AG is just as positive overall as that of the Volkswagen Group.