Net Assets

Consolidated balance sheet structure

At €381.9 billion, the Volkswagen Group’s total assets as of December 31, 2015 exceeded the prior-year figure by 8.7%, due among other things to the increased business volume of the Financial Services Division and to currency factors. The structure of the consolidated balance sheet as of the reporting date can be seen from the chart on this page. The Volkswagen Group’s equity amounted to €88.3 (90.2) billion at the end of fiscal year 2015. The equity ratio decreased to 23.1 (25.7)%.

As of December 31, 2015, the Group had off-balance-sheet commitments in the form of contingent liabilities in the amount of €3.5 (3.1) billion, financial guarantees in the amount of €1.6 (1.4) billion and other financial obligations in the amount of €25.4 (27.3) billion. The latter primarily result from purchase commitments for property, plant and equipment, as well as obligations under long-term leasing and rental contracts and irrevocable credit commitments to customers. Furthermore, negotiations regarding the diesel issue are currently being conducted with the authorities in the USA concerning possible investments in environmental projects and e-mobility. The investments are expected to amount to approximately €1.8 billion. Their content and timing have yet to be defined.

CONSOLIDATED BALANCE SHEET STRUCTURE 2015
in percent

Automotive Division balance sheet structure

The Automotive Division’s intangible assets and in particular its property, plant and equipment, which reflect the high volume of capital expenditures, were up on the year-end 2014 figures as of December 31, 2015. While equity-accounted investments rose mainly as a result of the acquisition of the shares in HERE, a technology provider for maps and location services, other equity investments declined due to the sale of the shares in Suzuki. Noncurrent assets rose by a total of 3.6%.

Overall, current assets increased by 7.0% year-on-year; within this item, inventories rose by 11.0% due to production-related and exchange rate factors. Marketable securities amounted to €12.3 (9.2) billion and cash and cash equivalents declined by €0.8 billion to €15.7 billion.

The Automotive Division’s equity amounted to €67.4 billion at the end of 2015, down 7.5% on the December 31, 2014 figure. It was positively affected by healthy earnings growth before special items, the hybrid notes issued in March and lower actuarial losses from the measurement of pension provisions. Charges resulting from the special items, amounts recognized in other comprehensive income due to the measurement of derivatives and the dividend payment to Volkswagen AG shareholders had an offsetting effect. The capital increases implemented in the Financial Services Division also reduced equity in the Automotive Division, where the deduction was recognized. The noncontrolling interests are mainly attributable to RENK AG and AUDI AG. Since these were lower overall than the noncontrolling interests attributable to the Financial Services Division, the figure for the Automotive Division, where the deduction was recognized, was negative. The division’s equity ratio decreased to 32.6 (36.9)%.

Noncurrent liabilities increased year-on-year to €73.6 (66.4) billion. Within this item, other liabilities were higher due to negative effects from the measurement of derivatives, while other provisions rose as a result of the special items. In contrast, pension provisions decreased following the change in the discount rate.

Current liabilities totaled €65.9 billion, up 13.3% on the year-end 2014 figure. Other liabilities increased due to the measurement of derivatives, and other provisions rose as a result of the special items. Reclassifications from noncurrent to current liabilities, in particular due to shorter remaining maturities, led to an increase in current financial liabilities. The figures for the Automotive Division also contain the elimination of intragroup transactions between the Automotive and Financial Services divisions. As the current financial liabilities for the primary Automotive Division were lower than the loans granted to the Financial Services division, a negative amount was disclosed for the reporting period. The item “Put options and compensation rights granted to noncontrolling interest shareholders” primarily comprises the liability for the obligation to acquire the shares held by the remaining free float shareholders of MAN. The item was adjusted to €3.9 (3.7) billion, mainly due to the increase in the cash settlement payment from the first instance of the award proceedings.

The Automotive Division’s total assets amounted to €206.8 billion as of December 31, 2015, up 4.8% on the year-end 2014 figure.

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PASSENGER CARS BUSINESS AREA BALANCE SHEET STRUCTURE

€ million

 

2015

 

2014

 

 

 

 

 

Noncurrent assets

 

105,028

 

101,459

Current assets

 

57,289

 

52,869

Total assets

 

162,317

 

154,328

Equity

 

54,598

 

58,708

Noncurrent liabilities

 

61,195

 

54,366

Current liabilities

 

46,524

 

41,254

At year-end 2015, noncurrent assets in the Passenger Cars Business Area were up 3.5% on the prior-year figure at €105.0 billion. Property, plant and equipment increased as a result of the comprehensive investment program, and equity-accounted investments rose primarily because of the acquisition of the shares in HERE. Current assets rose by 8.4% to €57.3 billion, mainly due to the increase in inventories and marketable securities. Total assets amounted to €162.3 (154.3) billion as of December 31, 2015.

Equity declined by €4.1 billion to €54.6 billion, despite the healthy earnings performance before special items. Noncurrent liabilities increased by 12.6%, while current liabilities rose by 12.8% – this figure includes reclassifications resulting from shorter maturities. Both noncurrent and current provisions increased because of the special items, especially those relating to the diesel issue.

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COMMERCIAL VEHICLES/POWER ENGINEERING BUSINESS AREA BALANCE SHEET STRUCTURE

€ million

 

2015

 

2014

 

 

 

 

 

Noncurrent assets

 

27,784

 

26,772

Current assets

 

16,730

 

16,311

Total assets

 

44,515

 

43,083

Equity

 

12,767

 

14,107

Noncurrent liabilities

 

12,373

 

12,072

Current liabilities

 

19,374

 

16,904

In the Commercial Vehicles/Power Engineering Business Area, both noncurrent and current assets were up year-on-year at the end of the reporting period. Total assets rose to €44.5 (43.1) billion.

At €12.8 billion, equity was down 9.5% on the previous year. Noncurrent liabilities increased by 2.5% and current liabilities by 14.6% compared with the 2014 reporting date.

Financial Services Division balance sheet structure

The Financial Services Division’s total assets amounted to €175.1 billion on December 31, 2015, 13.9% higher than at the 2014 year-end.

The increase in lease assets and noncurrent financial services receivables due to the positive business performance and exchange rate effects saw noncurrent assets rise by 12.9% overall. Current assets were up 15.3% on the prior-year figure, also as a result of volume-related factors and exchange rate effects. Within this item, current financial services receivables increased by €2.6 billion to €47.5 billion, while cash and cash equivalents rose by €2.6 billion to €5.2 billion. The Financial Services Division accounted for approximately 45.8% of the Volkswagen Group’s assets at the reporting date.

At €20.9 billion, the Financial Services Division’s equity as of December 31, 2015 exceeded the prior-year figure by 20.3%. In addition to earnings growth, equity was pushed up by capital increases implemented by Volkswagen AG to finance the growth in business and meet regulatory capital requirements. The equity ratio was 11.9 (11.3)%. Noncurrent liabilities rose by 12.1% and current liabilities increased by 13.8% as against year-end 2014. In both cases, this was attributable to the funding of volume growth and exchange rate effects. At €26.5 (25.3) billion, deposits from direct banking business were higher than in the previous year. The debt to equity ratio amounted to 7:1.

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CONSOLIDATED BALANCE SHEET BY DIVISION AS OF DECEMBER 31

 

 

VOLKSWAGEN GROUP

 

AUTOMOTIVE1

 

FINANCIAL SERVICES

€ million

 

2015

 

2014

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

1

Including allocation of consolidation adjustments between the Automotive and Financial Services divisions, primarily intragroup loans.

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent assets

 

236,548

 

220,106

 

132,812

 

128,231

 

103,736

 

91,875

Intangible assets

 

61,147

 

59,935

 

60,918

 

59,697

 

228

 

237

Property, plant and equipment

 

50,171

 

46,169

 

47,768

 

44,080

 

2,403

 

2,089

Lease assets

 

33,173

 

27,585

 

2,931

 

2,815

 

30,242

 

24,770

Financial services receivables

 

63,185

 

57,877

 

 

 

63,185

 

57,877

Investments, equity-accounted investments and other equity investments, other receivables and financial assets

 

28,873

 

28,541

 

21,195

 

21,639

 

7,678

 

6,902

Current assets

 

145,387

 

131,102

 

74,019

 

69,180

 

71,367

 

61,923

Inventories

 

35,048

 

31,466

 

31,369

 

28,269

 

3,679

 

3,197

Financial services receivables

 

46,888

 

44,398

 

−614

 

−464

 

47,502

 

44,862

Other receivables and financial assets

 

27,572

 

25,254

 

15,315

 

15,677

 

12,257

 

9,577

Marketable securities

 

15,007

 

10,861

 

12,261

 

9,197

 

2,747

 

1,664

Cash, cash equivalents and time deposits

 

20,871

 

19,123

 

15,688

 

16,499

 

5,183

 

2,624

Total assets

 

381,935

 

351,209

 

206,831

 

197,411

 

175,103

 

153,798

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

88,270

 

90,189

 

67,366

 

72,815

 

20,905

 

17,374

Equity attributable to Volkswagen AG shareholders

 

80,500

 

84,950

 

59,898

 

67,828

 

20,603

 

17,122

Equity attributable to Volkswagen AG hybrid capital investors

 

7,560

 

5,041

 

7,560

 

5,041

 

 

Equity attributable to Volkswagen AG shareholders and hybrid capital investors

 

88,060

 

89,991

 

67,458

 

72,870

 

20,603

 

17,122

Noncontrolling interests

 

210

 

198

 

−92

 

−55

 

302

 

253

Noncurrent liabilities

 

145,175

 

130,314

 

73,568

 

66,438

 

71,607

 

63,876

Financial liabilities

 

73,292

 

68,416

 

9,557

 

10,643

 

63,735

 

57,773

Provisions for pensions

 

27,535

 

29,806

 

27,119

 

29,361

 

415

 

445

Other liabilities

 

44,349

 

32,092

 

36,892

 

26,434

 

7,457

 

5,658

Current liabilities

 

148,489

 

130,706

 

65,898

 

58,158

 

82,591

 

72,547

Put options and compensation rights granted to noncontrolling interest shareholders

 

3,933

 

3,703

 

3,933

 

3,703

 

 

Financial liabilities

 

72,313

 

65,564

 

−3,974

 

−847

 

76,286

 

66,411

Trade payables

 

20,460

 

19,530

 

18,709

 

17,838

 

1,751

 

1,692

Other liabilities

 

51,783

 

41,909

 

47,229

 

37,465

 

4,554

 

4,444

Total equity and liabilities

 

381,935

 

351,209

 

206,831

 

197,411

 

175,103

 

153,798