Net Assets and Financial Position

Total assets amounted to €141.9 billion at December 31, 2016, €8.4 billion up on the prior-year figure. Investments in tangible and intangible fixed assets declined to €2.0 (2.7) billion. At €9.1 (9.1) billion, investments in financial assets remained at the prior-year level. Fixed assets accounted for a share of 71.9 (71.1)% of total assets.

Current assets (including prepaid expenses) increased slightly compared with 2015.

Equity amounted to €27.1 billion at the end of the reporting period; the increase was due in particular to the improved net income for the year. The equity ratio was 19.1 (18.3)%.

At €30.8 (28.6) billion, other provisions remained at the previous year’s high level. This was due to the previous year’s increase in provisions in connection with the diesel issue, which largely continued to be recognized. Provisions for pensions and similar obligations declined by €0.7 billion to €13.6 billion, primarily as a result of a change in the interest rate, while provisions for taxes decreased by €0.7 billion to €3.9 billion.

The €4.8 billion rise in total liabilities (including deferred income) to €66.4 billion is mainly 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, declined year-on-year from €−5.1 billion to €−6.2 billion. The interest-bearing portion of debt amounted to €55.1 (51.4) billion. In our assessment, the economic position of Volkswagen AG is just as satisfactory overall as that of the Volkswagen Group.