Net Assets and Financial Position

(CONDENSED, IN ACCORDANCE WITH THE GERMAN COMMERCIAL CODE)

Total assets amounted to €215.0 billion on December 31, 2025, up €4.9 billion on the comparative 2024 figure. Intangible assets and property, plant and equipment decreased by €0.4 billion to €10.7 billion because depreciation and amortization charges exceeded investments. Financial assets rose to €157.1 (154.0) billion as a result of a number of capital increases.

In fiscal year 2025, there was restructuring within the US investment portfolio of Volkswagen AG. In the reporting year, the shares in Volkswagen Group of America, Inc., Reston/VA, were contributed to the subsidiary Volkswagen US-Holding, Inc., Wilmington/DE, (Volkswagen US-Holding) at a carrying amount of €4.7 billion. Likewise, the shares in Scout Motors Inc., Tysons/VA, (Scout), were transferred to Volkswagen US-Holding, Inc., Wilmington/DE, by way of contribution at a carrying amount of €0.6 billion. To finance the capital requirements of Scout, further contributions of €0.3 billion were made to the capital reserves of Volkswagen US-Holding. In addition, Volkswagen AG made a contribution of €0.2 billion to Volkswagen US-Holding in fiscal year 2025 to finance the capital requirements of Electrify America, LLC, Reston/VA.

In fiscal year 2025, Volkswagen AG acquired the shares in VW Group Sverige AB, Södertalje, from Volkswagen Finance Luxemburg, S.A., Strassen, (Volkswagen Finance Luxemburg), at a purchase price of €0.2 billion and subsequently contributed them to VW Holding Österreich GmbH, Salzburg.

To finance the acquisition of 35% of the capital shares of Volkswagen (Anhui) Automotive Co., Ltd., Hefei, Volkswagen AG made a contribution of €0.2 billion to the capital reserves of Volkswagen Finance Luxemburg in the reporting year. Also in the reporting year, Volkswagen AG made a contribution of €0.3 billion to the capital reserves of Volkswagen Finance Luxemburg to finance the capital requirements of Green Mobility Holding S.A., Strassen.

Fixed assets accounted for a share of 78.0 (78.6)% of total assets.

Current assets (including prepaid expenses) amounted to €47.3 (44.9) billion as of December 31, 2025. Inventories were down by €0.3 billion to €6.5 billion. The decline in work and services in progress is mainly attributable to lower inventories of transmissions and electric drives. The decrease in finished goods and merchandise is due to the reduction in the inventories of new vehicles toward the end of the year. Receivables and other assets rose to €31.6 (30.8) billion. This was attributable to receivables from loans to affiliated companies, among other factors. Cash-in-hand and bank balances were up, driven in particular by the increase in restricted short-term time deposits at the reporting date.

Equity at the end of the reporting year was €47.1 (42.8) billion. The equity ratio was 21.9 (20.4)%.

Other provisions decreased by €0.5 billion to €17.6 (18.1) billion, due mainly to lower provisions for personnel matters. Provisions for pensions fell by €1.6 billion to €21.4 billion, particularly as a result of a change in measurement inputs, and provisions for taxes decreased by €0.2 billion to €1.9 billion.

The €2.9 billion increase in liabilities, including deferred income, to €126.9 billion was due mainly to higher loan liabilities to affiliated companies and higher liabilities to banks.

Volkswagen AG’s cash funds, comprising cash-in-hand and bank balances with a maturity of less than three months, less bank liabilities repayable on demand and cash pooling liabilities, dropped year-on-year from €−2.7 billion to €−4.0 billion. The interest-bearing portion of debt amounted to €109.4 (102.0) billion. We consider the economic position of Volkswagen AG for 2025 to be satisfactory overall in view of the challenges arising from the volatile geopolitical and geoeconomic conditions, which are accompanied by measures that are increasingly protectionist and competition that continues to intensify.