34.3. Liquidity risk

The solvency and liquidity of the Volkswagen Group are ensured at all times by rolling liquidity planning, a liquidity reserve in the form of cash, confirmed credit lines and the issuance of securities on the international money and capital markets. The volume of confirmed credit lines was increased significantly by a syndicated credit line entered into in the amount of €20 billion.

Local cash funds in certain countries (e.g. Brazil, Argentina, Ukraine, Malaysia, India and Taiwan) are only available to the Group for cross-border transactions subject to exchange controls. There are no significant restrictions over and above these.

The following overview shows the contractual undiscounted cash flows from financial instruments.

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MATURITY ANALYSIS OF UNDISCOUNTED CASH FLOWS FROM FINANCIAL INSTRUMENTS

 

 

REMAINING CONTRACTUAL MATURITIES

 

 

 

REMAINING CONTRACTUAL MATURITIES

 

 

€ million

 

under one year

 

within one to five years

 

over five years

 

2015

 

under one year

 

within one to five years

 

over five years

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Put options and compensation rights granted to noncontrolling interest shareholders

 

3,406

 

 

 

3,406

 

3,185

 

 

 

3,185

Financial liabilities

 

74,217

 

66,347

 

13,377

 

153,941

 

67,634

 

63,296

 

12,011

 

142,941

Trade payables

 

20,456

 

4

 

 

20,460

 

19,526

 

4

 

 

19,530

Other financial liabilities

 

5,550

 

1,940

 

69

 

7,560

 

4,652

 

1,470

 

94

 

6,216

Derivatives

 

77,686

 

73,684

 

10

 

151,380

 

61,623

 

51,265

 

207

 

113,094

 

 

181,316

 

141,976

 

13,456

 

336,747

 

156,619

 

116,034

 

12,312

 

284,965

When calculating cash outflows related to put options and compensation rights, it was assumed that shares would be tendered at the earliest possible repayment date.

Derivatives comprise both cash flows from derivative financial instruments with negative fair values and cash flows from derivatives with positive fair values for which gross settlement has been agreed. The cash outflows from derivatives for which gross settlement has been agreed are matched in part by cash inflows. These cash inflows are not reported in the maturity analysis. If these cash inflows were also recognized, the cash outflows presented would be substantially lower.

The cash outflows from irrevocable credit commitments are presented in note 38, classified by contractual maturities.

As of December 31, 2015, the maximum potential liability under financial guarantees amounted to €1,638 million (previous year adjusted: €1,399 million). Financial guarantees are assumed to be due immediately in all cases. They relate primarily to the pledge of claims under certificates of deposit with Bankhaus Metzler amounting to €1.3 billion (previous year: €1.4 billion) to secure a loan granted to Fleet Investments B.V. by Bankhaus Metzler (see disclosures on the basis of consolidation/joint ventures). This was disclosed under “Contingent liabilities” in the previous year. The prior-period disclosure was adjusted accordingly.