Annual Report 2025

Consolidated Financial Statements

Cash Flow Statement

of the Volkswagen Group for the period January 1 to December 31, 2025

Cash Flow Statement of the Volkswagen Group

€ million

 

2025

 

2024

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

40,296

 

43,522

Earnings before tax

 

9,307

 

16,806

Income taxes paid

 

−5,152

 

−6,187

Depreciation and amortization of, and impairment losses on, intangible assets, property, plant and equipment, and investment property1

 

16,866

 

12,858

Amortization of and impairment losses on capitalized development costs1

 

8,365

 

7,209

Impairment losses on equity investments1

 

38

 

710

Depreciation of and impairment losses on lease assets1

 

12,203

 

11,279

Gain/loss on disposal of non-current assets and equity investments

 

−95

 

110

Share of the result of equity-accounted investments

 

968

 

2,362

Other non-cash expense/income

 

−946

 

903

Change in inventories

 

−896

 

−2,695

Change in receivables (excluding financial services)

 

−211

 

−2,083

Change in liabilities (excluding financial liabilities)

 

3,165

 

52

Change in provisions

 

1,760

 

4,247

Change in lease assets

 

−24,166

 

−19,358

Change in financial services receivables

 

−6,196

 

−9,061

Cash flows from operating activities

 

15,009

 

17,151

Investments in intangible assets (excluding development costs), property, plant and equipment, and investment property

 

−15,299

 

−17,202

Additions to capitalized development costs

 

−9,047

 

−10,244

Acquisition of subsidiaries

 

−359

 

−284

Acquisition of other equity investments

 

−2,106

 

−2,152

Disposal of subsidiaries

 

67

 

−148

Disposal of other equity investments

 

951

 

231

Proceeds from disposal of intangible assets, property, plant and equipment, and investment property

 

733

 

947

Change in investments in securities and time deposits

 

−1,485

 

−203

Change in loans

 

−938

 

−2,517

Cash flows from investing activities

 

−27,484

 

−31,573

Capital contributions/capital redemptions

 

420

 

−1,144

Dividends paid

 

−4,460

 

−5,779

Capital transactions with non-controlling interest shareholders

 

352

 

Proceeds from issuance of bonds

 

35,993

 

38,420

Repayments of bonds

 

−32,669

 

−32,617

Proceeds from issuance of commercial paper and notes2

 

27,549

 

13,828

Repayments of commercial paper and notes2

 

−30,417

 

−12,414

Changes in other financial liabilities2

 

16,624

 

12,179

Repayments of lease liabilities

 

−1,476

 

−1,334

Cash flows from financing activities

 

11,918

 

11,140

Effect of exchange rate changes on cash and cash equivalents

 

−938

 

55

Change of loss allowance within cash and cash equivalents

 

0

 

1

Net change in cash and cash equivalents

 

−1,495

 

−3,226

Cash and cash equivalents at end of period

 

38,801

 

40,296

 

 

 

 

 

Cash and cash equivalents at end of period

 

38,801

 

40,296

Securities and time deposits and loans

 

47,395

 

44,662

Gross liquidity

 

86,197

 

84,959

Total third-party borrowings

 

−264,703

 

−254,081

Net liquidity

 

−178,506

 

−169,122

1

Net of impairment reversals.

2

As from fiscal year 2025, commercial paper is presented in “Proceeds from issuance/repayments of commercial paper and notes”. In the previous year, it had been presented in “Changes in other financial liabilities”. The prior-year figures were adjusted accordingly.

Explanatory notes on the cash flow statement are presented in the section relating to the cash flow statement.