Net Assets and Financial Position

At the end of fiscal year 2011, total assets amounted to €75.7 billion, thus exceeding the value at the close of 2010 by €8.4 billion. Investments in tangible and intangible assets stood at €2.0 billion, €0.8 billion above the prior-year level. This increase was mainly due to the necessary increase in product and engine capacities. Investments in financial assets amounting to €10.1 billion (€10.9 billion) include the acquisition of shares of MAN SE and the indirect acquisition of the trading business of Porsche Gesellschaft m.b.H., Salzburg. On December 31, 2011 fixed assets amounted to €52.5 billion, 24.9% higher than the previous year.

At €23.1 billion, current assets were below the prior-year level at the reporting date, mainly due to the decline in liquid assets.

Equity in the amount of €19.5 billion at December 31, 2011 was 14.0% higher than at the end of 2010 due to the more than doubling of net income for the year.

The equity ratio was on a level with the previous year at 25.7% (25.4%). Provisions rose by 16.0% to €28.8 billion. In addition to higher provisions for taxes, this increase was primarily attributable to higher amounts for employee expenses and provisions for commodity price hedges measured in accordance with the imparity principle. Higher liabilities to affiliated companies were the main factor behind the 8.2% increase in liabilities to €27.3 billion. The interest-bearing portion of debt rose accordingly to €20.8 billion (€19.8 billion).

In our assessment, the economic position of Volkswagen AG is just as positive as that of the Volkswagen Group.