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Annual Report Porsche AG 2015
Contents
Porsche Annual Report 2015
Success Factor: Human Capital In Porsche's idea factory,
the employees lay the foundation stone for innovation
Promotion of Young Talents | Porsche creates
How our family lineage is influencing the Mission E. Page:
16 Letter from the Chairman of the Executive Board
42 Business Development
the ideal turbocharger for sporting talents 50
Promotion of Young Talents II . Young Filipinos manage the
leap to a better future at the Porsche training centre
WEC - Le Mans Porsche writes history
at the World Endurance Championship
911 - Mission E . Two new
sports cars make their mark
20
Unmistakably Porsche.
As a Pioneer on the Way to Mission E
THE IDEAL LINE 5
Mobil
DMG MORI
CHOPAHO
WE C
19
Mobil S
CHOPARD
OPARD CR
DMG MORI
THE IDEAL LINE 4
The Acceleration of Success
On and next to the race track the team decides over victory or defeat.
Our performance on the racing line that goes down in Porsche history. Page:
78
Annual Report Porsche AG - 2015
62
68 Employees, Sport and Society
78
94 Research and Development
of the Executive Board
Oliver Blume
Dear Ladies and Gentlemen,
T
he year 2015 was not an easy year for the German
automotive industry, but it was an outstanding year for Porsche.
Economic and geopolitical risks dampened the economic dynamics
in many regions of the world. The diesel issue weighs heavily on
the Volkswagen Group. It is one of the particularities of our times that
we still managed to keep Porsche on course. And what is more, we
have created the best preconditions for qualitative growth - whether
in economic, ecological or social terms.
Our Strategy 2018 to concentrate fully on developing, manufac-
turing and selling exclusive, highly emotional sports cars has proved
to be the right way to go. We have even managed to achieve some
goals ahead of plan. This is evidenced by new top figures for deliver-
ies and sales. We were able to once again improve our operating
result. Our return on investment continues, as always, to be a yardstick
for the industry as a whole. And never before has Porsche given
work to so many people.
Porsche is on the very front line making progress happen. The 17th
triumph at Le Mans, victory in the manufacturer and driver categories
at the World Endurance Championships 2015 - all of this goes into
every Porsche, whether the iconic 911, the superior driving machine
918 Spyder or a sporty SUV. With the innova-
tions that we are testing in hard racing condi-
tions, Porsche is securing the competitive
advantage for the production models. Porsche
was the top premium supplier of plug-in hybrids
in three different vehicle segments. And now
we want a hybrid solution like this in furtherpro-
duction series. The next, logical step: Mission E,
the first purely battery-operated Porsche. A
car that can only come from Porsche and no
other manufacturer: exclusive, strong, sporty -
and with everyday usability that points the way
to the future. It is significant that we do not
see the profound changes in three dimensions
of our industry - electrification, digitalisation
and connectivity - as a threat, but welcome them
as opportunities.
A total of about one billion euros are flowing
into the project. Around 14,000 employees
in Zuffenhausen and Weissach are carrying the
investment costs of the Mission E with us
by doing without a part of their salary increase
and by working more. In return, more than
1,000 new jobs have been created. This unu-
sual concession from the employees' represent-
atives and the workforce shows how much
confidence we all have in our performance,
innovative power and competitive edge. And it
demonstrates a unity that is seldom encoun-
tered in companies. The success of Porsche is
the success of the entire team. On behalf of
the Board of Management, I would therefore like
to thank all of our employees for their passion,
their dedication and the hard work they have
done over the past year.
Our goal remains qualitative and sustainable
growth - even when the necessary investments
present us with a business challenge. But I
am convinced that, in Strategy 2018, we have
created a solid, robust foundation upon which
the new Strategy 2025 can build. We have what
it takes to continue what we have started.
Yours faithfully
ваки Вите
Oliver Blume
Letter from the Chairman of the Executive Board
17
Letter from the Chairman
PC
Annual Report Porsche AG - 2015
136 Emission and Consumption Data
98
116 Sales, Production and Procurement
122 Financial Analysis
123 Net Assets
126
Financial Position
126 Results of Operations
128 Financial Data
128 Consolidated Income Statement
129 Consolidated Statement of Comprehensive Income
130 Consolidated Statement of Financial Position
131 Consolidated Statement of Cash Flows
132 Consolidated Statement of Changes in Equity
134 The Supervisory Board
136 Further Information
138 Key Performance Indicators of the Porsche AG Group
SEASE
18 The Executive Board
PARO CHO
19/09/2015
11/10/2015
21/11/2015
6h AUSTIN1 12
6h
6h
NÜRBURGRING1 2
919 Hybrid Nr. 17
речилад
FUJI1 2
01/11/2015
6h
919 Hybrid Nr. 17
Bernhard
Кәрмен
LE MANS1.2.5
24 h
6h
World Endurance
Drivers' Champion
WEC
World Endurance
Manufacturers' Champion
PORSCHE
LLLL
STUTTGART
PORSCHE
Annual Report 2015
DMG MORI
6h
SILVERSTONE2-
*** 6 h SPA-FRANCORCHAMPS 236
02/05/2015
30/08/2015
13.-14/06/2015
Webber
Hartley
12/04/2015
Dumas
and methods drives the staff. Page:
20
Annual Report Porsche AG-2015
THE IDEAL LINE 2
Growth Creates Value
Porsche's business development is shown
in the Management Report. From page:
42
#
Annual Report Porsche AG - 2015
A Future to Look Forward to
We know what is possible with encouragement and motivation.
We pass our conviction on to young people and generate new
perspectives for them in the region and at the other end of the world.
How different paths in life cross one another. Page:
50
Annual Report - Porsche AG - 2015
919 Hybrid Nr. 18
The constant search for new technologies
Porsche stands for innovation.
THE IDEAL LINE 3
THE IDEAL LINE 1
Turbocharger of Ideas
רובת
919 Hybrid Nr. 18
Jami
juer
sewing
WEC
qǝ
LMP1
SHANGHAT12
BAHRAIN1.5
Annual Report - Porsche AG - 2015
The Ideal Line
Annual Report Porsche AG-2015
World Endurance Drivers' Champion | World Endurance Manufacturers' Champion
Freedom
Motivation
Trust
Alexander Steiniger
than seeing his or
her own ideas being
implemented?"
"What can motivate
an employee more
Systematic Transfer
of Knowledge
Head of Undercarriage Assembly
Alexander Steiniger is constantly on
the lookout for optimisation.
Transparency
Dynamics
Inspiration
Foresight
With the production of the plug-in hybrid sports car, the 918
Spyder, Porsche has perfected the symbiosis between real
manual work and high-end technology. The manufactory
for the small series of the super sports car limited to 918
vehicles was set up on a surface area of 4,000 square
metres. Around 80 top employees work at ten main assembly
stations and 21 pre-assembly stations. The planned quantity
was reached in June 2015 and the plants were taken down
again. What remains is a wealth of experience.
All earlier EC-screwdrivers with a documenting function had
a cable for the data transfer, which in real operations actually
has an advantage: as the space within which the screwdriver
can be used is restricted, this means that the stored screw
profile can't be screwed into the wrong vehicle by mistake.
One of the first employees in the manufactory as the Head of
Production Planning was Alexander Steiniger. The graduate
industrial engineer is today in charge of undercarriage assem-
bly for the sports car production series, 911 and 718. Steini-
ger is excited about the knowledge and technology transfer
from the 918 Spyder production right up to the present
day. Alone the building's architecture with its clear and bright
design stands for the automotive production of the future.
The aura emanated by this hyper-modern manufactory really
infected all of the employees. "Go over to the manufactory,
go and watch what they are doing there," was a constant
appeal from Oliver Blume, back then Member of the Executive
Board Production and Logistics, to the colleagues. It was
clear to him that this team was not only working on the most
innovative car in the entire industry, but also that ideas
would have to make their way out of the manufactory and into
overall production at Porsche. And the idea virus really did
spread into series production. "Hot tips were constantly being
bandied back and forth," says Steiniger. A total of 25 innova-
tion themes emerged directly from the manufactory alone,
and from the people working there and the heads of depart-
ment; of these 25, ten were awarded a patent. Steiniger adds,
"What can motivate an employee more than seeing his or
her own ideas achieving success and being grabbed at?"
It is also apparently small insights that enable great progress
when practically implemented. For example, the so-called
EC-screwdriver. This precision tool, which is driven by a high-
power battery, managed its triumphal procession right up to
line production. It tightens screws with a defined torque and
at the same time documents, using digital signal processing,
The wireless EC-screwdriver with tracking system
is an important innovation in vehicle assembly.
whether all screws are sitting exactly as planned - which is
an important step within the extensive quality management
process.
"The 918 Spyder was our reference product for trying out the
wireless data transfer via Bluetooth. It is important that the
exact location of the screwdriver can be tracked so that its
stored radius for action is restricted exclusively to the correct
vehicle. The challenge was to find a solution suitable for
large-scale series production," says Steiniger, describing the
As a production man,
Alexander Steiniger
knows that a lot of
know-how and profit
potential can be found
in the production
process. At Porsche,
employees don't
keep their ideas to
themselves, but
discuss them with
their colleagues.
starting-out position. "The result is a system that locates
the EC-screwdriver throughout the day. This means you can
be sure that the screwdriver is only activated when it is at
the right vehicle at the right time. Furthermore, we found out
the locating system is so precise that we can even localise
the individual screw positions within a vehicle. That was the
real innovation, because it resulted in higher precision in the
production process." This is because a wireless EC-screw-
driver with a tracking system can be allocated to the precise
coordinates of a specific screw position at any time. That
saves time for possible error searches and therefore means
less time needed for follow-up work. Another side effect
serving highest quality is also the fact that no cable comes
into contact with the chassis of the brand new factory vehi-
cles. This technology makes Porsche the benchmark in wire-
less documenting screwdrivers - and not only for the Group
itself, but also for other manufacturers.
At many places in the vehicle production process, Porsche
unites the manufactory concept with series production.
Maximum standardisation alongside highest individualisation
for the customer is the result. That's the only way to achieve
premium products. And it is once again clear that it is the
individual that matters. Especially as individualisation will
continue to increase in the future.
32
Success Factor: Human Capital
"One thing is clear: we need men and women who actively
think about their work and how they can optimise it every
single day," says Assembly Manager Steiniger. "Anyone who
doesn't keep his ideas to himself, but discusses them with
his colleagues, is a real Porschean."
While manufacturing the 918 Spyder, Porsche put into prac-
tice many innovative ideas. And patents for several new devel-
opments in assembly and quality assurance were applied for.
Always at the focus of attention were the highest demands
of vehicle ergonomics. As such, a specially developed lift trol-
ley was used to assist in the completion of the Monocoque
chassis. And an innovative scissor lift made installing the 140
kilogramme heavy high-voltage battery a lot easier. Even
the leather covering and assembly tables in the manufactory
are considered to be a benchmark in terms of ergonomics
and flexibility.
Annual Report Porsche AG 2015
into production vehicles.
When talking to colleagues, all that matters for
Christian Pfänder is the strength of the arguments.
33
29
Success Factor: Human Capital
Annual Report - Porsche AG - 2015
30
Foresight
Freedom
Dynamics
Trust
Every Single
Person Counts
Transparency
With great technical understanding
and a talent for mediation:
Christian Pfänder turns prototypes
31
Inspiration
Generally the role of the "innovator" is left up to the R&D
department in industrial companies. But Blume takes
a somewhat different approach: Production - like every
other department - becomes an idea factory in order
to exploit the full potential for the best products on the
market. At Porsche this vision is reality, because the
employees possess certain skills. People like Christian
Pfänder, for example. A man who goes through life
upright and with a clear view of the problems ahead and
their solutions. At the Pilot Centre in Zuffenhausen,
Pfänder is responsible for turning prototypes into pro-
duction vehicles. To achieve this, he must (in his own
words) be a "mediator, communicator and fire-fighter."
His colleagues from Vehicle Development and Production
each see the world through "their own spectacles,"
Pfänder says. It is vital that these different ways of look-
ing at things and interests be bundled together. Working
hand in hand means bringing the new vehicle to its
goal: series maturity. And this must happen as fast as
possible and in perfect quality. A job that demands
of him a great deal of skill and technical know-how every
single day. "That often means making compromises -
but always for the good of the cause," says the industrial
engineer.
His winning nature and ten intense years as an amateur
footballer have taught Pfänder to always strike the right
chord. "This is not the place for a lone wolf." The job
is mostly stressful ("It feels like I am juggling with snow-
balls while they melt in my hands"), but it is never boring.
He runs meetings in the Pilot Centre in Zuffenhausen and
later on at the production lines in the individual plants
with a great understanding of his metier and a talent for
mediation, and he manages to walk the tightrope
between the colleagues from Development and those
from Production. And all that matters here is the
strength of the arguments, because Pfänder does not
have the authority to give orders. "That wouldn't work
in the long term anyway," he says.
And yet, it did not necessarily look as if the 31-year-old
would have such a meteoric rise in his career. After leav-
ing middle school, then high school and vocational col-
lege, Pfänder trained as an industrial clerk at a medi-
um-sized company and, at the beginning of his twenties,
realised that this did not have to be the end of his career
path. He started studying Industrial Engineering and
landed an internship at Porsche. His degree thesis on
"Implementing a quality method in prototype construc-
tion" catapulted him into manufacturing the 918 Spyder.
An outstanding vehicle in many respects.
"We work
hand in hand to bring
a new vehicle to
production maturity."
Christian Pfänder
It is important to start afresh every day
with a clear eye for the best solutions.
Success Factor: Human Capital
11
Motivation
Annual Report Porsche AG - 2015
Dynamics
Freedom
Comprehensive know-how transfer - Oliver Blume
seeks an intense dialogue with his employees.
35
Annual Report Porsche AG 2015
Transparency
On a Straight Path
to Improvement
Foresight
Trust
Freedom
Dynamics
Inspiration
Motivation
Openness creates trust, and discussions are best carried out
with the object directly at hand - Kai Maring (left) and Andreas
Juchem are at home in Porsche's culture of innovation.
The quality of the surface finish on a chassis follows the
maxim of highest precision. That requires a very exact eye.
Blume brings a clear message with him: short channels, flat
hierarchies and an open exchange of ideas. At nearly every
opportunity, he encourages people to use the best of the
Volkswagen Group for Porsche without neglecting the culture
typical of Porsche. That means preserving the manufactory
concept and at the same time bringing in the potentials from
large-scale series production. With this pragmatic style of
a comprehensive transfer of know-how and with his openness
and fresh approach, Blume has generated strong motivation
and a mood of optimism.
"As a bodywork specialist, Blume was very much involved in
the corresponding topics," says Juchem, describing Blume's
approach. Such phases call for pragmatic and fast solutions.
If a detail remains unclear after a discussion like that, Blume
often says, "Just send me the info per SMS afterwards." Or
he sorts out a detail on the way to the canteen, at a chance
meeting on the treadmill at a Leipzig hotel or at another
chance location. One thing becomes clear again and again:
Blume loves discussing things directly on the object itself -
without an endless presentation at a long meeting. "Let's go
straight to the vehicle - that's one of his favourite sentences,"
says Juchem.
For Kai Maring, the Macan launch was the greatest challenge
in his career to date. And yet the vehicle and its quality already
take on life before the actual assembly on the production
line in Leipzig. The process already gets underway beforehand
among Porsche's suppliers who manufacture complex con-
struction components. As such, the Macan's clamshell-type
bonnet is an extremely demanding part of the bodywork. It
is produced in a Group plant in the Slovakian city of Bratislava.
"There are only a handful of press lines that manufacture
a component of this size in the world," says Maring. And
because the high-end bonnets have to travel 650 kilometres
from Bratislava to the Leipzig plant, a special load carrier
turned out to be the decisive link between the production
sites. It enfolds the component like the proverbial kid gloves
and protects it from the sometimes rough world of transport.
"Clear error analysis and
agreement about how
to remedy the situation
a method that
has proved its worth."
Andreas Juchem
Short channels, flat hierarchies and an open exchange of ideas:
those are the important cornerstones that make possible a
comprehensive know-how transfer. With his style of communication,
Oliver Blume inspires motivation and a mood of optimism.
"Mr. Blume knows what is important in such topics. He
makes no secret of things, but passes on his knowledge to
the employees," says Maring. His colleague Juchem adds,
"And when something goes wrong, nobody has to be scared
that his head will be bitten off. A clear analysis of the error
and agreement on a deadline for remedying it is what
Blume's understanding of management and team work looks
like. He knows the details, asks questions, stays on the
ball and shows in a personal meeting that he can really moti-
vate the team as a real team player himself."
36
Success Factor: Human Capital
28
37
Kai Maring and Andreas Juchem are two employees who have
experienced him live at fireside chats. Juchem already knew
Blume because he was a mechanical engineer in Leipzig for
two years, when production work on the new Macan was being
prepared there. At that time, Blume came to the plant in Sax-
ony every week. That made the Macan launch a topic of con-
versation, of course, at later fireside chats. Building a new
vehicle with a new team at a new plant in Leipzig was a special
challenge for everyone, Blume included. Some compare it
with climbing up an 8,000-metre mountain without oxygen.
But unlike lone wolves such as mountaineer Reinhold Messner,
only an experienced team can manage such a project in the
automotive world.
-03-02-
-0,6-0,2
-0.3
0,0
Dynamics
Motivation
Productive
Fireside Chats
Transparency
A culture of error in the millimetre range -
Andreas Tietz appreciates the
spirit in the Production department.
Trust
Inspiration
When Oliver Blume became Head of Production, he set
up a number of discussion rounds. In doing so he was
pursuing two goals: he wanted to get to know the work pro-
cesses and the employees at the plants in Zuffenhausen
and Leipzig himself, and to better network them with
one another and encourage an exchange of ideas. Since
then, so-called component-for-component discussions have
been held regularly in the initial phases of the production
process for every new vehicle model. Together with plan-
ners, the colleagues from quality control, the purchasers
and the suppliers critical topics are identified and possible
solutions discussed directly on the construction compo-
nent in question. Because, despite all the computers and
automation, direct conversation is the central and also
most efficient tool when a number of tasks need to be com-
pleted fast. "Mr. Blume wants to have a specific person
to talk to for every topic," says Andreas Tietz from Launch
Management in Leipzig, describing the culture of direct
communication.
That influences everyday working life. In December 2015,
for example, Tietz and Blume met up with one another over
the new Panamera in the pre-series production phase. What
that means for production is that all critical matters are
remedied one after the other so that the actual production
of the first customer vehicle runs flawlessly. Blume knows
the relevant details in this phase: "The quality of the sur-
face finish on the chassis is a potential main problem area
in every project," says Tietz. The result of the meeting was
that the surface on the front fender had to be improved.
As is to be expected from open communication, Blume -
like everyone else was fully informed. This subsequent
improvement job landed in Tietz's planner and it had been
dealt with by the next meeting. "It is very important to
allow this culture of error," Tietz says. "Only when all topics
have been brought to the table can we prioritise and deal
with them accordingly. It is important to promote and main-
tain this spirit."
In a company with around 25,000 employees, this philoso-
phy must be shared and passed on by the management -
who play an important role as communicators. Oliver
Blume is a team player and that is why he is concerned with
getting to know personally as many co-players as possible.
For this purpose, he initiated the so-called "fireside chats".
And anyone who conjures up images here of cosy conversa-
tions with crackling logs on the fire, solid leather armchairs
and whisky in heavy crystal glasses is greatly mistaken.
In the sober ambience of the conference room, right in the
middle of the production hall in Zuffenhausen or Leipzig,
ten to twelve young members of management meet up each
time with Blume taking part. A total of 300 such meetings
have already taken place.
"The communication
culture at Porsche
is direct and always
to the point."
Andreas Tietz
34
Success Factor: Human Capital
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<--0400
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0,3
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RPSOUTE
Foresight
911 Targa 45
In this creative competition, the innovation room works like
a turbocharger for unusual ideas. "It is important here to lay
your cards on the table," says Sarah Heizmann. The young
employee is one of three full-time innovation managers. A grad-
uate physicist, she earned her first scientific laurels in the
area of nanotechnology research; she also worked in the solar
energy industry and her career path proves in an impressive
manner that Porsche also draws on capable employees from
outside the circle of usual candidates. That is why the PhD
scientist, at only 34 years of age, is one of the founding mem-
bers of the Innovation Management division.
In the beginning there was a brilliant idea: a preliminary leak test
with the help of sonic waves, transmitted from the vehicle's
own sound system. The innovation has been tested thoroughly
in the laboratory using a newly developed preliminary test.
Inspiration
PORSCHE PRODUKTION
Mit unseren Innovationen gestalten wir den
Wettbewerbsvorsprung der Produktion.
Progress
Annual Report Porsche AG 2015
24
Foresight
Freedom
Dynamics
In Porsche's Idea Factory
Not more hp, but more ideas per hp - by managing good ideas,
Porsche strengthens its innovative power. The goal is creative competition
among experienced members of staff and young talents. Production is
the role model, while other company divisions follow. Errors are welcome.
Inspiration
Success Factor
Human Capital
Trust
URSCHE PRODUKTION
Mit unseren Innovationen gestalten wir den
Wettbewerbsvorsprung der Produktion.
Transparency
"Porsche puts
people first."
Oliver Blume
Motivation
The Nobel Prize winner Linus Pauling once said, "If you want
to have good ideas, you need a lot of ideas." Ideas are one
thing, collecting and channelling them is another. This is
something that Porsche never ceases doing. One of the com-
pany's collecting points can be found on the ground floor
of Building 4 in Plant 4 in Zuffenhausen: this mysterious room
is called the "Innovation Room", and has just enough space
for 20 people. Anyone expecting a high-tech laboratory full of
electronic equipment and monitors for working on the future
here will be bitterly disappointed upon entering the room. The
only furniture in there is a white varnished counter and a few
stools, and a large screen on the wall. That's it.
The reason for these sparse fittings is that clarity allows
creativity to flow unhindered. All there is to show what innova-
tive projects Porsche Production is currently working on is
a large overview on the wall. The message is clear: it is the
people taking part in the innovation process who fill the
room with their ideas and a lively exchange of information.
The meetings, which take place regularly, are generally a
colourful mix. Hierarchies do not play a role here. The aim is
to create interfaces to as many departments as possible
as well as a cross-section of different disciplines.
The "innovation room" in Zuffenhausen:
those taking part fill the room with their
ideas and an exchange of information.
Motivation
Foresight
Trust
Freedom
Annual Report Porsche AG - 2015
18
The Executive Board
Oliver Blume
The Executive Board
of Dr. Ing. h.c. F. Porsche AG
Chairman of the Executive Board
Lutz Meschke
Deputy Chairman of the Executive Board.
Finance and IT
Detlev von Platen
Sales and Marketing
Uwe-Karsten Städter
Procurement
When he took on the position of Head of Production a good
three years ago, today's CEO Oliver Blume called the innova-
tion room to life as part of his responsibilities for innovation
management, in order to maintain production at an absolutely
top level. Porsche is top, there is no question about it, but
because Porsche always wants to stay at the top, the sports
car manufacturer needs an extensive culture of innovation
in all company divisions. "Our innovations are giving Produc-
tion a competitive edge. But ideas do not appear by them-
selves, you need to do something to generate them," says
Albrecht Reimold
Production and Logistics
Wolfgang Hatz
Research and Development
19
Innovations do
not appear by
themselves.
You need to do
something to make
them happen.
21
-
Annual Report Porsche AG - 2015
22
Transparency
Success Factor: Human Capital
The Starting Point for Progress
PORSCHE
Andreas Haffner
Human Resources
Blume, talking about the systematic management of good
ideas In the knowledge that there are a great many ideas
out there, but what counts is making these reality. "Every
innovation is allocated by us very specifically to a new vehicle
project or to a production plant." In this way, the exchange
and bundling of ideas on only a few square metres ties up
with the Porsche philosophy of "not more hp, but more ideas
per hp." The creative competition involves long-serving and
experienced members of staff as well as young talents. -
The inner drive to create
something new comes naturally to us.
25
Transferring innovations into structured project
management is a major factor of our success.
DUKTION
A marked culture of innovation is the basis for the success
of Porsche: Oliver Blume talks to Sarah Heizmann.
Mit unseren Innovationen gestalten wir den
Wettbewerbsvorsprung der Produktion.
26 Success Factor: Human Capital
27
Annual Report Porsche AG - 2015
"At Porsche you
can dive deep
into the world of
innovation. The
goal is always
series production."
Nikolas Immer
Freedom
been realised since 2014.
Foresight
Inspiration
Dynamics
Transparency
Nikolas Immer is a degree student who has
introduced an innovative method that has
the chance of going into large-scale series production.
Motivation
You can never be too young for a stroke of genius at
Porsche. The 27-year-old degree student Nikolas Immer
presented his idea in the innovation room a year ago: a pre-
liminary leak test for the convertible top with the help of
sonic waves. The heads of department in the Steering Com-
mittee were enthusiastic and encouraged the Technology
Management graduate to pursue this very promising innova-
tive path further. Only a few months later he was able to
present his project to the Management Committee and in
front of Oliver Blume. That was the breakthrough.
What springs to mind? The Steering Committee and the Man-
agement Committee are the only bodies in which a degree
student has to present his innovation in order to be given the
green light for his idea and its further development. That
is the Porsche culture of innovation exactly as CEO Blume
wants it to be: open, direct, results-oriented.
The young Nikolas Immer was able to work under laboratory
conditions and at the same time on a concrete project.
Everything he needed for the test was freely available: for
seven weeks a 911 Convertible and - even more importantly
- the budget needed to carry out the corresponding tests
together with an external specialist. During the entire project
term, he was able to exchange ideas with experts who have
achieved scientific success at renowned universities. He
delved deep into the world of innovation, bearing in mind at
all times what the implementation of his method would bring
in practical terms in series production.
With his leakage testing project, Immer, who is now
employed full-time at Porsche, fulfilled all criteria. And yet
without the innovation room and the new processes this
enabled, his idea might have been lost in the long march
through the institutions, or might have been put on the
proverbial back burner - especially because young employ-
ees have not yet built up a large network. "It was a great
piece of luck for me in my still brief career," says Immer
about his project.
His tests came through the laboratory phase brilliantly. What
matters now is to prove in a prototype system that sonic
waves which originate from the built-in sound system in
the vehicle are able to reliably identify untight places in the
convertible top. A robot arm equipped with sensors and
positioned at a defined distance from the vehicle surface
should be able to discover unusually high sound leakage and
thus identify critical places in the top. Before going into
series production, innovations have to be thoroughly tested.
In future, the newly developed preliminary test together with
the watering test carried out today aims to further optimise
the vehicle quality. This shows how Porsche is continuously
improving production processes.
Success Factor: Human Capital
Trust
innovation projects have
Inventive Minds
are Encouraged
being worked on as we speak.
Annual Report Porsche AG 2015
15
Foresight
Freedom
Dynamics
Inspiration
Turbocharger
for Ideas
Sarah Heizmann is convinced that motivation in the
innovation room grows out of the freedom everyone
has to express his or her ideas openly.
Trust
Motivation
"The risk of failure that
comes with every
proposal is by no means
Transparency
of Porsche already get together shortly after the first presenta-
tion to work on a novel production method in which steel and
aluminium are bonded. As these two metals cannot be welded
to one another, aluminium sheeting is folded around a steel
frame, practically wound around it. This is not fundamentally
new, but it still means crossing into new territory in terms
of the required precision and in the series production of a pre-
mium product.
Sarah Heizmann
innovation measures are
Using the process managed by Heizmann, production-relevant
projects are discussed across divisions and across company
locations in the earliest possible phase. This process of intro-
duction and discussion calls itself "implementation-oriented".
The guiding idea behind it is to build up production and
development and to develop the vehicle in a joint process. The
exchange of ideas often takes place with the involvement
of universities and suppliers. This interplay then becomes a
strong driver of efficiency. This is because, in the end, as many
innovations as possible are integrated into the production
process. One essential success factor is transferring innova-
tions into structured project management. The idea managers
have defined seven fields of importance here. Lightweight
construction - the classic Porsche discipline that Porsche does
best - is one of these; but electromobility has also now come
on board and is really taking off with the 918 Spyder and, in
future, the Mission E.
And so innovation management also stands for intellectual
resource efficiency. Every co-thinker should fast become
a co-operator. And nobody is allowed - even with top-level
scientists to disappear into an ivory tower to spend months
there, or even years, researching in their own little world.
A good idea becomes a tangible project within a few weeks. As
such, the lightweight construction experts from all divisions
61
During such processes, the risk of failure that comes with
every proposal is by no means frowned upon. Nobody should
be put off by the notion of failure when it comes to finding
ideas: and nobody should feel as if they can't speak their mind.
That's the only way to motivate people. Positive examples
like the one of a young degree student make the rounds well
beyond his own division and motivate others to throw their
ideas into the ring.
7
innovation fields: lightweight
construction, E-/I-vehicles,
digital planning, production
process, resource efficiency,
human capital, flexibility.
frowned upon."
40%
thing that prepares them for their later job," says Esser.
And because the focus is on people, attributes such as a
sense of responsibility, trust in oneself, and courage to take
your own decisions are promoted. Esser adds, "Anyone
learning with us is a part of Porsche and he or she will
shape the future with us. The aim is to live out the compa-
ny's culture of innovation and communication and make
your own contributions to this as well." Who knows, perhaps
we'll be seeing some trainees in the innovation room of
Porsche Production sooner than you think.
of apprentices in the
technical/commercial area
are middle-school-leavers.
in a promotional year.
the chance to take part
150
socially disadvantaged
12
young people are
trained by Porsche every
business year - with a
guaranteed job at the end.
50%
Dieter Esser
youths were given
increase in the number
6.9%
past three years.
40
Success Factor: Human Capital
MITSUBH
Skilled handling of real components:
Marina Tsolakidou at a control panel for
simulating the production technology.
41
FESTO
Annual Report - Porsche AG 2015
China 7.7%
Economic Growth
Change in GDP
At 20.7 million vehicles (up 6.1 percent), sales of cars and light commercial
vehicles in North America exceeded the 20-million mark for the first time.
The United States accounted for 17.5 million units. Demand for passenger
cars in South America declined for a third successive year in 2015, drop-
ping by 21.2 percent to 3.1 million vehicles. By contrast, the number of
new passenger car registrations continued to increase in the Asia-Pacific
region, with a decline in momentum. The same was true of the Chinese
market: with growth of 7.7 percent to 19.2 million vehicles, this was the
largest individual market worldwide.
"A training position at
Porsche is highly sought
after. We get 2,800
applications every year."
Delivery of
of apprentices in the
The new Porsche training centre in
Zuffenhausen provides an optimum learning
environment and state-of-the-art facilities.
with Maring and Juchem
is already flowing now into the teaching schedules of the tech-
nical occupations, for example. Or the "Production 4.0"
philosophy thanks to the use of networked production pro-
cesses. The robots now have their fixed place in the teaching
schedules and, using practical examples, handling becomes
a matter of course. The new training centre in Zuffenhausen
has several mini production plants which are every bit as
good as their larger role models from the plant next door -
complete with electronic control, mechanical and pneumatic
elements, conveyor belts and a bright orange robot. "Part
of the teaching programme is, among other things, to identify
malfunctions in the small, but highly complex plant and then
fix them," explains Esser. "Real situations on real compo-
nents, just like the ones that electronics technicians in indus-
trial engineering will face later on in their job."
New Vehicles
Promotion of Young Talents I
Annual Report Porsche AG - 2015
An eye for detail - Oliver Blume
at the so-called "Meisterbock".
38
Success Factor: Human Capital
PO 193
36-379 3
AMB
PRO
1:4
"The quality of a vehicle does
not first emerge on the conveyor belt,
but long before that."
Kai Maring
The trainers see the biggest learning success in hands-on
demonstrating, identifying and experiencing. It is all about
grasping in the truest sense of the word. The apprentices
soon learn that even the smallest imprecision can have great
consequences. Like Marina Tsolakidou, who is filing a part
and who is still amazed after her first year of training "that I
have made so much progress. I would never have thought
that at the beginning." No matter what occupation is being
learned: "Our younger generation become familiar with every-
39
Foresight
Targeted Training
The success of the vocational training lies in conveying to
the new employees the innovation culture typical of Porsche
from the very beginning. At the new training centre in Zuffen-
hausen, the company provides two bright, light-flooded floors
with state-of-the-art equipment - the best possible prere-
quisites for learning both in theory and in practice. More than
4,500 apprentices have completed their training with Porsche
to date. At the present time, eight technical and two com-
mercial occupations as well as six dual-system courses of
study are offered, with a total of 150 training positions. "They
are highly sought after," says Head of Training Dieter Esser;
"we get more than 2,800 applications every year. From these
we choose the candidates that fit in best with Porsche." For
the young men and women, a great deal is at stake; for exam-
ple, pointing their lives in a good direction. In addition to
top training, they also have a guaranteed job if they pass their
courses.
AMISUNGH
Inspiration
Freedom
Dynamics
Transparency
Marina Tsolakidou is going through her trainee
programme step by step and sees
every learning achievement as a personal gain.
Trust
Motivation
What does a top training course include? "Naturally all the
course contents as prescribed by the Chamber of Industry
and Commerce. In addition, we teach extensive modules
tailored precisely to the needs of Porsche," Esser explains.
The company, he adds, is highly innovative, the products
the best on the market - and these high demands also apply
of course for the training of our future employees.
That is why a vehicle like the new Porsche Mission E with its
innovative electric drive and complex control engineering
Annual Report - Porsche AG - 2015
in units
57
to 370 vehicles, while sales of the Boxster/
Cayman doubled to a total of 457 vehicles. 1,416
Cayennes, 759 Macans and 610 Panameras
were delivered.
in the previous year, with 27 percent growth
and 6,527 vehicles delivered. Growth was driven
by the Cayenne and Macan model series. Deliv-
eries of the Cayenne rose by 42 percent, while
2,125 Macans were delivered to customers. The
911 model series saw 1,354 vehicles delivered;
the overall figure for the Boxster/Cayman model
series amounted to 1,505 units. Porsche Centre
Aoyama, the brand's 43rd branch in Japan, was
opened in a prime location in Tokyo.
Porsche Japan again smashed the record set
Vehicles Delivered
Japan: More than 6,000 New
With 58,009 vehicles
China was Porsche's
strongest individual
sales market for the
first time.
+24%
China: The Largest Individual Market
With 58,009 vehicles delivered in financial
year 2015, China (including Hong Kong) became
Porsche's strongest individual sales market.
Sales increased by 24 percent year-on-year. With
27,857 new vehicles delivered, the Macan over-
took the Cayenne (21,074 units) as the most
popular model series. A total of 5,249 Panameras
were sold. As a result, China is now Porsche's
largest market for the Cayenne, Macan and
Panamera. In total, 1,341 new vehicles of the
911 series (including the 918 Spyder) were deliv-
ered to customers. The figure for mid-engined
sports cars amounted to 2,488 units. Porsche's
growth path in China was also bolstered by the
continued expansion of the dealer network, with
an additional twelve Porsche Centres opening
their doors in the reporting period. At the end of
the year, the number of dealers had risen to 91.
Asia
Northern Europe: Sales Up Significantly
Porsche delivered a total of 2,187 units in the
Scandinavia region, up a quarter year-on-year due
primarily to the continuing strong growth in the
Swedish market. Demand was particularly high
for the Macan model series, which accounted for
a large share of market growth at 841 deliveries.
490 new two-door sports cars were sold, achiev-
ing double-digit growth despite the upcoming
change of model.
Despite a heterogeneous market environment,
Porsche increased deliveries to customers by
22 percent year-on-year to 4,972 vehicles due to
the growth markets of Poland and Turkey. The
Macan recorded 1,691 deliveries, the Cayenne
2,041 and the Panamera 446. A total of 794
two-door sports cars were delivered. The Porsche
Driving Experience Center Istanbul, which is
located at the former Intercity Istanbul Park
Formula One track, has been offering customers
and visitors the opportunity to experience
Porsche first hand since March 2015. An off-
road course, a driving safety centre and the
race track cater to practically all tastes.
Growth in Poland and Turkey
Eastern Europe:
46
Annual Report Porsche AG 2015
45
Business Development
Russia: Growth Despite the Crisis
The decline in oil prices, economic sanctions
and the weaker Russian rouble led to a difficult
situation in the Russian market. The overall
passenger car market contracted by over a
third in 2015. Porsche nevertheless lifted its
deliveries by 11 percent to 5,290 units. The
Cayenne and Macan again proved the most
popular model series, with 3,015 and 1,583
deliveries respectively. The Porsche Driving
Experience Center Moscow Raceway was
opened to boost the brand's presence and
customer loyalty in the Russian market. More
than 4,000 enthusiastic visitors were drawn
by Porsche's appeal to a range of driving and
training events in 2015.
28 percent to 1,367 units. 393 Cayennes and
644 Macans were delivered. The Cayenne S
E-Hybrid is particularly popular in Austria: more
than a quarter of all Cayennes delivered are
fitted with the innovative plug-in technology.
Sales of the 911 - a sports car icon - amounted
to 216 units.
Porsche increased its deliveries in Austria by
14 percent to 941 units. The Swiss automobile
market also saw high demand for the Cayenne S
E-Hybrid and Panamera S E-Hybrid models as
alternatives.
cial year 2015, lifting its deliveries by a third
to 3,822 vehicles. Despite the upcoming change
of model, Porsche 911 sales increased by
up one third of
deliveries in the
Benelux countries.
Deliveries of the
Porsche Cayenne S
E-Hybrid make
1/3
Porsche Switzerland
increased its
deliveries by one
third in the financial
year 2015.
+33% Porsche Switzerland set a new record in finan-
Switzerland: High Demand for the 911
South Korea: Strong Growth
Porsche's growth was buoyed by the economic
conditions in Spain and Portugal, with deliveries
up 26 percent to 2,595 vehicles. The six-cylinder
Macan found its place in the market. In Spain,
the segment is primarily dominated by four-
cylinder models.
The Porsche subsidiary in South Korea signifi-
cantly outperformed its prior-year results in
the second year since its formation. Deliveries
rose by 34 percent to 3,612 units on the back
of growth in all model series. The established
model series in particular saw another signifi-
cant rise. Where two-door sports cars were
concerned, the 911 (including the 918 Spyder)
recorded a 22-percent increase in deliveries
The Asia-Pacific region, which is managed from
Singapore, broke the 5,000-unit mark for the
first time to record 5,583 deliveries. Growth
amounted to 15 percent. This success was due
New U.S. Headquarters with Test Track
Porsche opened its new North America corporate
headquarters in Atlanta, Georgia, in May 2015,
including a customer experience centre. With a
price tag of 100 million USD, the One Porsche
Drive project is Porsche's largest-ever investment
outside Germany. The site comprises office,
training and event space complemented by a
module-based 2.6-km test track, a restoration
workshop and a restaurant.
Acquisition of Toolmaking Division from Kuka
The sports car manufacturer acquired the tool-
making division of Kuka Systems GmbH in the
year under review and continued to operate the
division as a wholly owned subsidiary of Porsche
AG. Over 600 employees at Porsche Werkzeug-
bau GmbH's locations in Schwarzenberg in the
German state of Saxony and Dubnica in Slovakia
strengthen the Company's expertise, especially
in the production of complex aluminium parts.
2014 the number of career entrants at Porsche
grew by half to 450 young people.
Porsche AG opened a state-of-the-art training
centre at the start of the new apprenticeship year
in September 2015. Situated on an area totalling
14,000 square metres, the new building offers
space for up to 500 trainees and students of the
Baden-Württemberg Cooperative State University.
It creates the optimal conditions to prepare the
next generation of young professionals for the
increasing challenges of the automotive industry.
In addition, the 30-million-euro investment takes
into account Porsche's growth: between 2011 and
Training Centre Opened
The Supervisory Board of Porsche AG gave the
green light for the Mission E project at the end of
the financial year. The plan is for Porsche's first
all-electric sports car to be launched at the end
of the decade. With this move, the Company is
focusing further on sustainable growth. More than
1,000 new jobs will be created in Zuffenhausen
alone. Approximately 700 million euro is being
invested at the Company's headquarters to build a
new paint shop and dedicated assembly facilities
over the next few years. The engine plant will be
expanded for the production of electric drives
and the existing body shell production facility will
also be expanded. In addition, further investments
will be made at the Weissach development centre
with the same objective.
In July 2015, the Executive Board and general
works council of Porsche AG resolved a package of
measures to safeguard the continuing existence
of sites. An agreement was reached to boost the
Company's productivity, flexibility and efficiency
and to rule out redundancies until 2020. More
than 1 billion euro is being invested in expanding
the sites in Zuffenhausen, Weissach and Ludwigs-
burg. A new body shell production facility and
a further engine plant will be constructed at
the Company's headquarters. The assembly line
will also be expanded. As well as the 911 and
Boxster, Cayman models will also roll off the
production line there in the future.
Strategic Plant Development
managed the Volkswagen plant that also produces
the body shell of the Porsche Cayenne. In addi-
tion, the Supervisory Board appointed Jürgen
Rittersberger as Executive Manager of Porsche AG,
with immediate effect. Rittersberger has been
at Porsche since 2002, most recently as Vice
President General Secretariat and Business
Development.
48
Annual Report Porsche AG - 2015
47
Business Development
The Supervisory Board appointed Andreas
Haffner as the new Member of the Executive
Board of Porsche for Human Resources, as
at 1 October 2015. Haffner had spent approxi-
mately four-and-a-half years at Volkswagen
as Head of Group Human Resources Top Man-
agement with responsibility for all executive
appointments. Previously, Haffner worked for
17 years in managerial positions in Human
Resources and Social Affairs at Porsche AG,
Porsche SE and Volkswagen AG. In December
2015, the Supervisory Board of Porsche AG
appointed Albrecht Reimold as the new Member
of the Executive Board of Porsche for Production
and Logistics. He took up his role on 1 February
2016. Reimold transferred to Zuffenhausen
from Bratislava, where for four years - he
In addition, Detlev von Platen was newly
appointed as the Member of the Executive Board
of Porsche for Sales and Marketing. Von Platen
transferred to Zuffenhausen from the U.S.,
where he had spent approximately seven years
as President and CEO of Porsche Cars North
America. He took up his new role on 1 November
2015. His predecessor, Bernhard Maier, trans-
ferred from Zuffenhausen to Mladá Boleslav in
the Czech Republic to take up the position of
CEO at Škoda. The Supervisory Board appointed
Lutz Meschke, Member of the Executive Board
for Finance and IT, as Deputy Chairman of the
Executive Board of Porsche AG. The previous
Deputy Chairman of the Executive Board was
Thomas Edig, who transferred to the Volkswagen
Commercial Vehicles brand as Member of the
Board of Management responsible for HR at the
end of September 2015.
as the New Chairman of the Executive Board
The Supervisory Board of Porsche AG
appointed Oliver Blume as Chairman of the
Executive Board of the sports car manufacturer
in September 2015. Blume replaces Matthias
Müller, who was appointed as Chairman of the
Board of Management of Volkswagen AG by the
Wolfsburg-based Group's Supervisory Board.
Blume had been the Member of the Executive
Board of Porsche for Production and Logistics
from the beginning of 2013. He took up his new
position on 1 October 2015.
Oliver Blume Replaces Matthias Müller
Significant Events
for Porsche Cars
Australia.
2015 was again
a record year
+46%
On November 2, 2015 Porsche learned of the
statements by the US Environmental Protection
Agency (EPA) with respect to the Cayenne Diesel.
As a consequence, Porsche cooperated fully
with the authorities to clarify the facts without
reserve and will continue to do so in future.
Against this background, Porsche has voluntarily
stopped selling Cayenne diesel vehicles (model
years 2014 to 2016) in the United States as a
precautionary measure.
Sales of Cayenne Diesel Vehicles in the
United States Voluntarily Stopped as a
Precautionary Measure
impact on the Middle East overall. In addition,
exchange rate developments in South Africa and
India over the past twelve months presented
additional challenges. Nevertheless, deliveries
declined by only 13 percent to 8,520 units.
4,422 new Cayennes and 1,464 new Macans
were delivered. Mid- and rear-engined sports
cars retained their strong position: the 911
recorded 1,176 deliveries, while the total figure
for the Boxster and Cayman amounted to 1,083
vehicles. 23 markets with 38 points of sale are
served by the regional office located in Dubai.
in the reporting period. Business development
in the region was affected by a range of factors:
on the one hand, the drop in oil prices put
sustained pressure on national budgets in the
region, while in the meantime the armed con-
flicts in Syria, Iraq and Yemen had a significant
Middle East and Africa: Consolidation
A total of 8,520 vehicles were delivered to
customers in the Middle East and Africa region
in particular to the Macan, which saw 2,888
new vehicles delivered to customers. Deliveries
of the Cayenne amounted to 1,639 units. Both
the Boxster and Cayman and the 911 achieved
a combined total of 392 deliveries. As in the
previous year, the Taiwanese market remained
very strong. 3,355 vehicles were delivered in
this market alone. Cambodia, Indonesia, Malaysia
and Thailand saw the opening of a new Porsche
Centre in each country.
Asia-Pacific: Milestone Reached
Spain/Portugal: Signs of Growth
Italy: Recovery in the Premium Segment
The premium segment in Italy saw growth in
2015 with a calming of the economic uncertainty
observed in previous years. With 4,807 new
vehicles delivered, Porsche outpaced this seg-
ment growth, posting a 14-percent increase
year-on-year. The 911 model series in particular
performed extremely well, achieving a share
of more than 50 percent in its relevant segment.
Porsche Cars Great
Britain exceeded
the previous year's
figure by one third
with 12,238 vehicles.
United States: More than 50,000
America
The best-selling model series in the reporting period was the Macan
(80,216 units), followed closely by the Cayenne with 73,118 vehicles.
The Panamera was further bolstered by the launch of the Edition models
in the spring of 2015 and achieved 17,207 deliveries. 11,792 new mid-
engined Boxster sports cars and 10,872 new Caymans were delivered
to customers. The 911 model series recorded 31,350 deliveries, with
566 for the 918 Spyder.
Growth was considerable, with the number of new vehicle deliveries
increasing by 19 percent in financial year 2015. The sports car manufac-
turer hit a new record of 225,121 units. In November 2015, sales broke
the 200,000-delivery mark for the first time in a single financial year, with
a customer in China taking delivery of a 911 Targa 4S on 18 November.
The fact that the 200,000th Porsche was delivered in China fits in with the
overall picture: China became the brand's largest individual market for
the first time in 2015. The Asia-Pacific region can look back on a highly
successful financial year overall, and made a substantial contribution to
the increase in deliveries. The main driver for Porsche's success is its
unique product range, the appeal of which was boosted in the spring of
2015 with the launch of the sporty 911 GT3 RS, Cayman GT4 and Boxster
Spyder models. The next generation 911 was unveiled in September 2015,
marking the highpoint of the financial year.
Porsche Delivers over 225,000 Vehicles
The global automobile market grew by
2.6 percent to 75.6 million vehicles in 2015.
While Western Europe, North America and the
Asia-Pacific region saw increases, some signifi-
cant, volumes in the passenger car markets in
Eastern Europe and South America were again
down considerably year-on-year. At 13.2 million
vehicles, Western Europe recorded its highest
number of new vehicle registrations in six years.
Germany accounted for 3.2 million units, up
5.6 percent. France (6.8 percent) and the United
Kingdom (6.3 percent) saw similar growth rates.
Double-digit demand for passenger cars was
recorded in Spain (20.9 percent, buoyed by
state subsidies) and Italy (15.5 percent). The
fall in demand in Eastern Europe was primarily
due to the slump in the Russian passenger car
market.
conflict between Russia and Ukraine combined
with declining energy prices had a negative
impact; Russia's economic output decreased
by 3.9 percent (previous year: growth of
0.6 percent). Following a very robust first
half of 2015, economic growth in the United
States lost momentum somewhat as the year
progressed. However, growth amounted to
2.4 percent (previous year: 2.4 percent) overall.
China also lost momentum, although its
economy expanded by 6.9 percent (previous
year: 7.3 percent).
0
1.6%
1.5%
2.5%
2.4%
The economic recovery continued in Western Europe, with GDP growth
increasing to 1.6 percent in 2015 (previous year: 1.3 percent). Germany's
growth of 1.5 percent (previous year: 1.6 percent) placed it in this bracket.
By contrast, recessive tendencies were observed in Eastern Europe. The
Global economic growth declined slightly to 2.5 percent in financial year
2015 (previous year: 2.7 percent). The economic situation in the industri-
alised nations improved somewhat, while growth rates in many emerging
economies lost momentum as the year progressed. The comparatively low
energy and commodities prices impacted the economies of the individual
countries reliant on them but proved supportive for the global economy
overall.
Global Economy Experiences Very Moderate Growth
2015
2014
2013
2012
Western Europe -0.3%
Germany 0.6%
2.5%
2.2%
USA
Global Economy
Business
Development
161,982
189,849
225,121
Australia/New Zealand: Significant Growth
Porsche Cars Australia again exceeded its prior-
year record in the reporting period by a signifi-
cant 46 percent. A total of 4,519 vehicles were
delivered to customers in Australia and New
Zealand. 2,191 units of the Macan were sold. This
success had no negative impact on the Cayenne,
which again lifted deliveries by 14 percent to
1,416 vehicles. At 434 new vehicles, the 911 again
exceeded the prior-year figure; the mid-engined
Boxster and Cayman sports cars remained at
roughly the very healthy level observed in the
previous year, with 415 deliveries. Porsche Centre
Doncaster was opened in Melbourne in May 2015
and is contributing to the brand's success and
the expansion of its branches. This new location
means that the brand is now represented by a
total of 18 Porsche Centres.
New Vehicles Delivered
Porsche delivered 51,756 new vehicles in the
U.S. in financial year 2015, with the brand
exceeding the 50,000-sale mark for the first
time. Porsche also posted double-digit growth
for a sixth consecutive time, at 10 percent in
2015. The Cayenne defended its position as the
best-selling model series with 16,473 deliveries,
of which 1,098 were S E-Hybrids. As a result,
the SUV model outperformed the Macan, which
at 13,533 deliveries also saw strong demand.
A total of 4,986 Panameras were delivered
to customers. At 9,898 and 6,663 deliveries
respectively, the 911 and Boxster/Cayman
+33%
Tax incentives meant that the Porsche Cayenne S
E-Hybrid was the best-selling model in the Bene-
lux countries, with 1,632 deliveries. A third of
the 4,996 vehicles delivered were hybrid models.
Belgium remained the market with the highest
sales, with 2,404 deliveries to customers, followed
by the Netherlands with 2,071 and Luxembourg
with 521 new vehicles.
Belgium/Netherlands/Luxembourg:
Hybrid Models Dominate
France: The Fascination of Le Mans
The 17th overall victory for Porsche at Le Mans,
something that no other manufacturer has ever
achieved, was not the only record set by Porsche
in France in 2015. With 5,015 deliveries to French
customers, the brand also set a new record for
deliveries, outperforming the prior-year figure by
a quarter. Porsche's double victory at Le Mans
was accompanied by the opening of the new
Porsche Experience Centre, located in the direct
vicinity of the legendary race track. At the Centre,
new and existing customers can experience the
vehicles' dynamic driving properties in a historic
location with authentic surroundings.
Great Britain: Demand for Sports Cars
Porsche Cars Great Britain delivered 12,238
vehicles to customers in financial year 2015,
exceeding the prior-year figure by a third and
setting a new sales record. While the Macan
and Cayenne were the two most popular model
series by volume, rear- and mid-engined sports
cars accounted for 36 percent of all deliveries in
Great Britain, an above-average share in com-
parison with the global market. The success of
two-door sports cars was also driven by the
sporty 911 GT3 RS, Cayman GT4 and Boxster
Spyder models - brand icons that underscore
Porsche's image. The 13th season of the Carrera
Cup Great Britain was also highly successful:
a record field of 34 drivers attracted avid motor
sport fans to the series over eight race weekends.
a record high of
28,953 new vehicles.
Deliveries in
Porsche's home
market of Germany
again achieved
+21%
and Experience Centres in Le Mans, Moscow,
Istanbul and Silverstone. Europe was also the
leader for plug-in hybrid vehicles, which are both
environmentally friendly and sporty. The region
accounted for 48 percent of global hybrid model
sales. 22 percent of all Cayenne and Panamera
models in the Europe region were ordered with
innovative plug-in hybrid technology.
The professionalism of the sales and marketing
processes was further enhanced with the aim of
increasing customer satisfaction. Porsche is now
offering new opportunities for customers and
enthusiasts to experience the brand with the
opening and expansion of the Porsche Driving
In Europe, which comprises 51 markets and
263 Porsche Centres, 47,289 new vehicles were
delivered in the year under review. At 26 percent,
growth in Europe equalled that of the successful
Chinese market. This growth was achieved despite
a difficult environment: the Ukraine conflict and
declining oil prices had a negative impact on
Russia and other Eastern European markets, while
the threat of terrorism in Western Europe and
Turkey had a temporary dampening effect on
consumer confidence. Porsche nevertheless
achieved growth not only in new vehicle sales, but
also in used vehicles and the after sales business.
Europe Region: A Strong Market
Germany: The Success Story Continues
Deliveries in Porsche's home market of Germany
were up 21 percent year-on-year in financial year
2015 to a record high of 28,953 new vehicles.
The 911 was the most popular model series, with
8,574 vehicles sold. The mid-engined Boxster and
Cayman sports cars again outperformed their
already very good prior-year figures, at 3,872
vehicles. In addition, the 918 Spyder super sports
car saw 75 vehicles delivered to customers. The
Macan's success story continued in the second
year since its launch, with 8,107 vehicles sold in
2015. The Cayenne was also highly popular. A
total of 6,459 of these sporty SUVs were deliv-
ered to customers in 2015, up 21 percent as
against the figure for 2014. With 1,866 vehicles
delivered, the Panamera also sold well. Ground
was broken on the Porsche Centre Böblingen in
the reporting period. The dealer network covered
86 Porsche Centres and three service centres
as at the end of the year.
French sales company Porsche France opened a
further Porsche Experience Centre in Le Mans in
June 2015. Situated next to the 2.9-km Circuit
Maison Blanche race track, it offers an exclusive
brand experience. Visitors can sample the driving
qualities of Porsche models on the test track and
a street course.
Europe
Given the country-specific import restrictions
and unfavourable exchange rate developments,
Porsche performed well in South American
markets. A total of 3,208 new vehicles were sold
to customers in Central and South America
(excluding Brazil) and the Caribbean. Deliveries
of the Boxster and Cayman totalled 360. With
341 sports cars delivered, the 911 expanded its
already high share in the segment. Sales of the
Panamera model series amounted to 73 vehicles.
The Cayenne remained the most popular model
series, with 1,215 new vehicles, closely followed
by the new Macan, with 1,209 vehicles delivered.
A total of 30 markets with 39 points of sale are
served by the regional office located in Miami.
With 1,212 vehicles delivered, Mexico was the
strongest individual market and contributed to
the positive performance in the reporting period.
South America: Holding Ground
Despite the Headwind
44
Annual Report Porsche AG 2015
43
Business Development
42
Porsche set a new record in Canada in 2015,
with 6,413 new vehicle deliveries and growth of
30 percent. Deliveries were up year-on-year in
all twelve months. Porsche is one of the stron-
gest growing automobile brands in the market.
The Cayenne retained its position as the most
popular model series, with 2,389 new vehicles
delivered. The Macan also enjoyed a high level
of popularity: 2,121 new vehicles were delivered
to customers in 2015. At 859 deliveries, the
911 set a new record. The Boxster and Cayman
also outperformed their very healthy prior-year
figures, with 682 deliveries overall. Where the
918 Spyder was concerned, 21 vehicles were
delivered to customers. With 341 deliveries,
the Panamera sold well. Ground was broken for
the Porsche Centre North Toronto, marking a
high point in the continuing expansion of the
dealer network. The new Porsche Cars Canada
headquarters and training centre will be inte-
grated into the sole dedicated Porsche branch
in Canada.
Canada: Another Record Year
model series posted decent figures in the year
before the launch of their new generations.
Deliveries of the 918 Spyder amounted to 203
vehicles. Opened in May 2015, the new U.S.
headquarters in Atlanta highlights the consider-
able significance of the North American market
for Porsche. It is home to a fascinating customer
experience centre with a test track, as well
as the offices of Porsche Cars North America
and other subsidiaries. The plan is to open
a second customer experience centre in Los
Angeles in 2016.
2013 2014 2015
Porsche was able to
achieve an increase
of 10 percent in the
USA with 51,756 new
vehicles delivered.
+10%
Brazil: A Good Start in a Difficult Environment
The Porsche subsidiary in Brazil was formed on
1 July 2015 and made a successful start in its
first six months. Despite the difficult market
environment, 732 vehicles were sold to customers
in Brazil in the reporting period. With 323 deliv-
eries, the Macan model series had the largest
share of sales, followed by the Cayenne with
216 deliveries. 174 two-door sports cars were
sold, 60 of which were from the 911 series. The
Panamera saw 19 units delivered to customers.
Seven points of sale are currently served by
the new subsidiary Porsche Brasil Importadora
de Veículos Ltda., domiciled in São Paulo.
Further Bonds Issued
Austria: 28-percent Growth
Financial Services in 16 Countries
The companies of the Porsche Financial Services
Group partner with the Porsche retail organisation
to offer tailored financial products and innovative
financial services in 16 countries. Thus, the
Porsche Financial Services (PFS) Group has 232
employees in nearly every important automotive
market in which the Porsche Group is active. The
Annual Report Porsche AG - 2015
55
PORSCHE COMPANY
HMHP
Uhlsport
GAZI
AIE
ORT
RECARD
RECARO
RO
GAZT
The team is everything.
Football is a great school.
Promotion of Young Talents I
54
Annual Report Porsche AG 2015
53
Lutz Meschke and
Rainer Lorz share a
love of football.
Together they get the
ball rolling, bringing
together young people
from all walks of life.
L.M.― Motivation is a good key word. That's what football can
offer young people. In a team sport you practice skills,
like ambition and perseverance, in a natural way. This
also applies to the other sports we support. We pursue
our commitment very strategically. We sponsor a
sports school for the Bietigheim Steelers in ice hockey,
as well as the Basketball Academy in Ludwigsburg -
the junior team there became the 2015 German cham-
pions. In Ludwigsburg alone, we have 2,500 children
involved in the sport. The experience all these children
gain in sport strengthens their character. Their self-
confidence develops. The sooner these types of skills
are learned, the deeper the influence they have.
bed as Franz Beckenbauer. Afterwards, the Bild news-
paper showed a photo of me with the headline: "He
slept in the Kaiser's bed" (laughs). Of course, that was
pretty motivating for me.
Chile. By chance, I happened to have slept in the same
team had stayed before their group match against
we were staying in the district where the German
R. L.- Football had a great influence on me too. I played
quite a lot and wildly - even though I never reached
the regional league. However, one highlight was
the chance of a special training course when I was
eleven. Shortly after the 1974 World Cup in Berlin,
up to the regional league. It really did me good to play
football as a child. I got together with a lot of boys
from many different cultures and was able to develop
my teamwork. You learn very quickly that you can
only find solutions as a team. That also helped me
later in business.
L.M.- With FC Britannia Solingen, among others, all the way
56
Sponsoring Sport
at Porsche AG
EMH
With full concentration
R. L. You've touched on a really important point there. A lot
of young people would far rather just play football
all day long. Here, we have to give them a bit of a prod
and remind them to concentrate on their education.
career.
L.M.- The integrative power of sport is unquestionable.
Sport helps overcome cultural and social differ-
ences very quickly. But relying on sport alone is not
enough. When a serious injury comes along, then
it's all over with football and a potential professional
Kickers junior teams and the refugees. In our "Turbo
for talented athletes" camps, we reserve spaces
for refugee children. It's important that these children
come into contact with children here of the same age
and experience a normal environment.
R. L.- Absolutely! For instance, we've started a refugee team
with a home in our neighbourhood which we equip with
jerseys and boots. We organise games between the
L.M.- A positive snowball effect.
R. L.- The cooperation with Porsche is really important for
us. Companies like Porsche make a great contribution,
particularly towards integrating underprivileged chil-
dren and young people. It's vital that we not only have
a few talented athletes in mind, but also regular play-
ers. With our one-week football camps, we reach a lot
of children and young people from other clubs in our
region.
and that we're able to live up to our social responsibility
in this way at the site in Stuttgart.
During the year under review, Porsche Financial
Services, Inc., domiciled in Atlanta, Georgia,
issued an ABS bond in the United States for a
total of approximately 700 million USD. The
private placement was given a top rating by the
rating agencies and, as in similar transactions
in the previous year, included customer contracts
for Porsches as well as contracts relating to
Bentleys and Lamborghinis. Porsche Financial
Services, Inc. is an indirect wholly owned sub-
sidiary of Porsche AG.
"Sport is the quickest way
to overcome social
and cultural differences."
L. M.- Obviously it takes good teachers and coaches to develop
good ideas for games and lead a team to success. In this
sense, you are really professional in the way you develop
the young Stuttgarter Kickers and you add a lot of heart
and soul. We're pleased that we can support a training
club as part of our "Turbo for talented athletes" project
R. L.- I agree with you. The young age is a very important
key in their social and sporting development. I'm
always amazed when I look at the juniors here with us
at Waldau. The B and C junior teams play in the first
division and the A juniors are just about to move up to
the highest class. If the course is set properly early on,
anything is possible. In all honesty, 40 years ago we
were lagging far behind young people today both tech-
nically and tactically. We used to just trip the fat ones
up from behind and kick the ball forward (laughing).
In the Kickers football academy, children from all
types of social background have access to
professional training conditions. The aim of the
club is to acquire certification as a youth
development centre from the German Football
Federation (DFB).
R. L.- Mr Meschke! Welcome to the Stuttgarter Kickers at
Waldau Stadium! Where did you play football back
in the days when you were active?
Stuttgarter Kickers
SG Sonnenhof Großaspach
Underprivileged children are supported in the
football school here. A special highlight is the
"Leipzig Quarter Final" city tournament for
700 children.
- RB Leipzig
8- to 16-year-olds can develop their skills in the
ice-hockey summer camp sponsored by Porsche.
- SC Bietigheim-Bissingen Steelers
55 partner schools, a total of 2,500 children
from the Stuttgart region are able to train.
By bringing together 11 partner clubs and
· Porsche Basketball Academy Ludwigsburg
With the "Turbo for talented athletes" sports
programme, Porsche provides underprivileged
children the chance to play football, basketball
and ice hockey at its large production sites in
Leipzig and Zuffenhausen.
AMBE
together to tackle new challenges.
... and the support of the team. The
juniors show how they are growing
and in peak form. While
training, it's the moment
that counts ...
Campaigns with regional schools help motivate
children in school, sport and vocational training.
Promoting young people from all types of social
backgrounds is the focus.
& Lorz, specialising in
giving advice to family
businesses and charities.
Lutz Meschke
Prof. Dr. Rainer Lorz,
President of Stuttgarter
Kickers, visiting professor
at the University of
Stuttgart and partner in
the renowned law firm
In the mood to play:
Annual Report Porsche AG - 2015
49
Business Development
Porsche AG will endeavour to further increase
new vehicle deliveries and revenue in financial
year 2016 as compared to the year under
review. This will primarily be driven by Porsche's
attractive product range, which is reflected
in the robust order situation. Although invest-
ments in vehicle projects and the expansion
and renewal of sites are high, continuous pro-
ductivity and process improvements and strict
cost management are intended to ensure that
Porsche AG's high earnings objective continues
to be achieved.
Anticipated Developments
the substantial declines already seen in recent
years. In the United States, the market for
passenger cars and light commercial vehicles
could continue to benefit from the favourable
conditions in 2016, and the positive trend
observed in the prior-year period could continue
at a weakened pace. However, volumes in the
South American markets are expected to be
substantially below the prior-year figures in 2016.
Somewhat weaker momentum is becoming
apparent in the passenger car markets in the
Asia-Pacific region.
Dampened Automotive Markets
Developments in the passenger car markets
in the individual regions could be mixed in
2016. Overall, global demand for new vehicles
is expected to grow at a somewhat slower rate
than in the reporting period. Western Europe is
showing signs of a slight year-on-year decrease
in demand at the very least. In the German
sales market, too, volumes are expected to fall
just short of the prior-year figure after positive
growth in the past year. Spain and Italy are
expected to see the recovery continue at a
moderate pace. Demand for passenger cars in
Russia is likely to decrease further, despite
in China, although this will continue to lose
momentum as against the previous years. The
economic situation in Japan is expected to
see only a slight improvement.
Economic growth is expected to remain high
2013 2014 2015
54,000
44,000
46,000
Financial Services
New Agreements
Signs of robust growth continue to be observed
in North America. That said, the south of the
continent paints a different picture: Brazil will
probably see negative growth continue in 2016.
The global economy is expected to see somewhat
stronger growth in 2016 than in the previous
year due to the anticipated economic recovery
in the majority of industrialised nations. As was
the case in the previous year, however, growth
looks set to remain sluggish in a large number of
emerging economies. Western Europe's economic
upturn should continue in 2016. The German
economy is showing signs of slightly higher growth
rates than in the reporting period. Provided that
there is no escalation in the conflict between
Russia and Ukraine, the situation in Eastern Europe
could stabilise.
Further Growth Possible
Outlook
In addition to the core products of leasing and
financing, the extensive product range includes
insurance products, the Porsche Card and dealer
financing. Under the brand names Bentley Financial
Services and Lamborghini Financial Services,
exclusive financial services are offered in relation
to the Group's Bentley and Lamborghini brands,
including in Germany, Italy, Switzerland, France,
Russia, Singapore, the Middle East, the United
States and Canada. In addition, individual solutions
are developed for Bugatti customers. Demand
for financial services remained strong in financial
year 2015, with over 54,000 new agreements
signed around the world. The financial services
companies manage more than 114,000 leases
and financing agreements with a volume of just
over 4.4 billion euro. In addition, over 14,000
customers appreciate the comfort and exclusive
services offered by the Porsche Card and
approximately 20,000 customers have taken
advantage of the insurance offerings of the
Porsche Insurance Service. The companies of the
Porsche Financial Services Group have adapted
their processes and methods - including for risk
management in their respective markets to
ensure compliance with the ever stricter statutory
requirements imposed on financial services.
in financial year 2015 with the formation of a
financial services subsidiary in South Korea.
PFS Group continued its international expansion
trainees and
students of the
Baden-Württemberg
Cooperative State
University undergo
training in the
500
new jobs will be
created in Zuffenhausen
alone due to the
market introduction of
the Mission E project.
Hennerkes, Kirchdörfer
1,000
CFO, Lutz Meschke,
on the way to
new training centre.
juniors of the
Deputy Chairman and
Member of the Executive
Board of Porsche AG,
responsible for finance
and IT.
training with the
with
Lutz Meschke,
A
Lutz Meschke
"In football you learn
very quickly that you
can only find solutions
as a team."
... and is fully involved in the game.
This unbridled commitment unleashes
new energy and boosts the confidence
of the young players.
Familiar ground beneath his feet:
Lutz Meschke shares his football
experience with the young talents ...
GASE
GAZI
Promotion of Young Talents I
Rainer Lorz
Conversation
52
Lutz Meschke
Stuttgarter Kickers.
A
Team
Spirit
and
Scoring
Goals
all social backgrounds with the "Turbo for talented athletes"
project. His counterpart, Rainer Lorz, is a partner of the
renowned Stuttgart law firm called Hennerkes, Kirchdörfer &
Lorz, and advocates the promotion of young talent because
it "greatly contributes towards integrating socially disadvan-
taged children and youths." Lutz Meschke made sure he didn't
miss the opportunity of training with the junior Kickers in the
GAZI Stadium on the Waldau before the conversation began.
top-level meeting is set to take place under the TV tower. A
love of football unites Chief Financial Officer Lutz Meschke
and the President of the Stuttgarter Kickers, Rainer Lorz.
With a verbal double pass, the Deputy Chairman of Porsche
AG underlines the company's social commitment at its major
production sites. Porsche promotes young players from
Promotion of Young Talents I
0x21
X
51
Annual Report Porsche AG - 2015
50
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MANILA
145 from 2017
120 from 2016
32
Planned New Construction.
Apprentices/year..
Apprenticeships Completed.... 250 since 2009
automotive mechatronics engineer
2008
C
Training Occupation..
PTRCA Facts
. 6,000 m²
A
R 2.0
၁ဝဝဝဝဝ
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OO
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00
Founded in.
Porsche Training and Recruitment Center Asia
tices gain their Porsche-specific skills.
This is also something they achieve
at the Porsche Center of Porsche im-
porter Robert Coyiuto Jr., an important
supporter of the PTRCA, where they
can get a taste of the practical side of
things.
о
square metres are occupied by the PTRCA
in the 6,000 m² new building
Promotion of Young Talents II
1,500
Lessons in the Don
Bosco Technical
Institute in the heart
of the million-strong
metropolis Manila.
CHAMPIO
BOSTO
E
DOVAVIOS
AI
HEAT
Promotion of Young Talents II
TECHNOLOGY
00
AUTOMOTIVE
Since 2009 the now 25-year-old has been
working as an automotive mechatronics
engineer at the Al Nabooda Automobiles
Porsche Center in Dubai. This car dealer
from the United Arab Emirates, like many
of his colleagues in the growing Middle
East market, relies on Porsche special-
ists like Jayson. The likeable young man
has just managed the leap from sys-
tems mechanic to diagnostic specialist.
Working daily with state-of-the-art
equipment is no problem for the Filipino.
And Jayson was given his chance at Don
Bosco in 2008 and at the just-opened
Porsche Training and Recruitment
Center Asia (PTRCA). This is a training
institute with the help of which the
sports car manufacturer from Zuffen-
hausen has, since then, aimed to cover
the greatly increasing demand for
qualified personnel in After Sales, in
particular in the workshops of the
Porsche Centers in the Middle East.
During his several months of basic tech-
nical training at the DBTI, it became
clear that Jayson would be a good candi-
date for the PTRCA. The PTRCA trains
people in the second qualification
phase, during which qualified appren-
living in poverty by making it possible
for them to get an education.
ayson Supan is the name of
one of these young Philippine citizens
who has been carrying out maintenance
work for the last six years as an auto-
motive mechatronics engineer on vehi-
cles at the booming Porsche Center in
the desert Emirate of Dubai. Cars from
a brand that he had never even heard
of in his former life. A life that foresees
for many young people an insecure
existence as a day labourer in the rice
fields before the gates of Manila. But
life had other things in store for him.
One of Jayson's uncles told him about a
school in the city. A school where chil-
dren from poor families could get an
education. The Don Bosco Technical In-
stitute (DBTI), run by the Salesians of
Don Bosco, has been helping for many
decades to ease the situation of people
J
64
Annual Report Porsche AG - 2015
63
and a Catholic educational institute come together in Manila? The result is educational
qualifications and more opportunities for young people, in Dubai, for example.
What happens when professionals in After Sales from Porsche, a Porsche importer
Service mechatronics
engineer Jayson Supan
in the Porsche workshop
in Dubai. The Philippine
citizen has qualified as
a diagnostic specialist.
R
62
Promotion of Young Talents I
"Thank you
for this
wonderful
opportunity"
Annual Report - Porsche AG - 2015
59
Promotion of Young Talents I
football in a club. Their passion for
sport has remained.
In the past they themselves played
L. M.- We see this with the Stuttgarter Kickers too. Tradi-
tion certainly helps. After all, you can't buy that.
R. L.- I also see this with our clients who are medium-
sized, family-run companies. Although these
companies sell their products worldwide, they
appreciate and care for their home base in
Germany. In a globalised world, it is very valuable
if you know your roots and are proud of them.
in the community. It would be dangerous in the
long run if the gap in our society grew wider.
L. M.- It's exactly this kind of support for young people
that we rely on at our major sites in Stuttgart
and Leipzig. We supported a neighbourhood foot-
ball tournament for children and young people
in Leipzig. Over 700 kids played football from all
over Leipzig! Even if we sell our vehicles world-
wide, we are clearly not just concerned with the
Champions League with the Stuttgarter Kickers
or Rasenball Leipzig, but about being involved
of identification with Porsche at the individual
sites. Just like any football club support, the culture
you put into practice is promoted at a local level -
in every town and in every village.
R. L. With this commitment, you create a strong sense
L.M. Yes, they do. The success of this project proves
us completely right. We have a success rate of
almost 100 percent. That means that practically
any young person can start an apprenticeship
with us after this year.
R. L. Do these young people take it as an opportunity?
our company. The number of training places has
increased in the past three years by 50 percent
to 150 places. We opened our new training centre
in Zuffenhausen last year. Porsche also specif-
ically promotes the training of young people who
are underprivileged. We have set the proportion
of first-level school leavers to 40 percent for
apprenticeships. And we also want to give young
people a chance with a year of funding for young
people who are allegedly not trainable. These
are mostly boys who have already fallen through
the cracks once or twice.
L. M.- Promoting young people is a major priority in
Lutz Meschke
"The Stuttgarter
Kickers or
Rasenball Leipzig
are not about
the Champions
League for us
but about social
commitment."
a positive snowball effect.
Lutz Meschke and Rainer Lorz
keep the juniors of Stuttgarter
Kickers on the ball - and create
With "Turbo for talented athletes"
58
Annual Report - Porsche AG - 2015
of the Don Bosco Technical Institute.
60
Jayson Supan
Ensingar
CHEF GAZI STADION AUF DER VALDAU VAL
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Annual Report Porsche AG - 2015
OOOOO
00
00
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61
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the final whistle.
Lorz stay on the ball even after
day: Lutz Meschke and Rainer
Taking stock after an intensive
BEGENENALS
ENERGY
BURGER
HERMA
BRIEM YENG
FELIX W
120
Work-life Balance
145
10 New Employees
*between January 1, 2015 and December 31, 2015
Bietigheim-
Bissingen
1,360 (+60)
Zuffenhausen
8,500 (+600)
Other German Sites
300
Leipzig
3,750 (+500)
Ludwigsburg
1,780 (+280)
73
Annual Report Porsche AG 2015
74
Sport and Society
Sport
Porsche's involvement in tennis has a long history.
Each year, the sports car manufacturer brings
the world's best tennis players to Stuttgart for
the Porsche Tennis Grand Prix. Porsche expanded
its commitment to top-class sport in the report-
ing period, moving into professional golf with the
Porsche European Open.
Kerber Wins the Porsche Tennis Grand Prix
The world's leading tennis players met for the
38th time at the Porsche Tennis Grand Prix in
Stuttgart, with nine of the world's top-ten-seeded
players vying for the title at the Porsche Arena.
The Porsche Tennis Grand Prix enjoys an excellent
reputation among tennis professionals: for the
seventh time, the players of the WTA Tour voted
the Stuttgart tournament their worldwide favourite
event in the Premier 700 category in the reporting
period.
The world-class matches were attended by a total
of 37,200 spectators in 2015. Tennis legend
Andre Agassi took on international Porsche brand
ambassador Maria Sharapova in an exhibition
match in front of the Porsche Museum as part of
the supporting programme for the WTA Premier
Tour event. Angelique Kerber won the title, the
third German to do so in its history; the reigning
Australian Open singles champion has also been
a brand ambassador for the sports car manufac-
turer since the beginning of the period under
review.
Sponsorship of Porsche Team Germany - the
German women's national tennis team - was
extended for a further three years in the reporting
period as part of Porsche's support for tennis
in Germany. The partnership with the German
Tennis Federation (DTB) also includes support for
up-and-coming players (Porsche Talent Team
Germany). The Porsche Talent Team provides the
country's promising young players with individual
training and professional guidance, both in a
sports and social context. In order for German
women's tennis to permanently establish itself
among the world's best, the sports car manufac-
turer recruited two new upcoming young players
to the Porsche Talent Team in 2015, bringing the
total number of sponsored players to six.
37,200
Employees, Sport and Society
72
5,560 (+410)
Weissach
Porsche AG will make a further contribution to
supporting refugees with its "integration year".
The initiative, which was launched in spring 2016,
initially provides 15 participants with entry-level
training. The objective is to provide vocational or
career opportunities in Germany and to facilitate
participants' integration into the labour market
as quickly as possible. The "integration year" is
similar to and supplements the existing "prepara-
tory year" programme, and includes in particular
language classes, social education and, if
required, psychological support. It also covers
acquiring basic technical skills and gaining an
insight into the various qualified careers.
Porsche Catering
Porsche Catering provides healthy and delicious
meals to plant employees. Additional catering
facilities successfully opened in 2015, including
the canteen at Plant 4 at the Zuffenhausen loca-
tion and a new on-site kiosk at the training centre.
The total lunchtime capacity now stands at some
3 million meals a year. Refreshments were avail-
able from twelve on-site kiosks at our locations
as of the end of the year.
Another core area is the public catering service at
the customer centre in Leipzig and the museum
restaurant in Zuffenhausen. For example, the
Christophorus restaurant lived up to its excellent
reputation, receiving awards from online portal
Trip Advisor and "Der Feinschmecker" magazine.
Health and Safety Management
At Porsche, health and safety management plays
an integrative role in developing healthy working
conditions with the primary goal of promoting
and maintaining employees' long-term health
and fitness, and thus their employability. Its core
elements include the early reintegration of
employees returning from long-term sick leave
and placing employees according to their health,
especially in view of demographic change.
Ergonomics assessments were carried out
together with production development to make
a preventative contribution to reducing high
or unbalanced workloads by creating pro-health
and pro-age workplaces (human ergonomics).
Porsche occupational health and safety manage-
ment was once again committed to developing
preventive target concepts and trialling these on
a pilot basis, above and beyond the statutory
requirements. The number of preventative
pre-travel medical consultations as part of the
preventative medical services has grown
substantially in recent years, increasing by
over 100 percent between 2011 and 2015.
Work Safety
The safety and physical health of all employees
takes top priority at Porsche. Specially trained
work safety professionals provide employees
and executives with expert advice on all work
safety-related questions.
visitors saw world-
-30% The core tasks performed by the safety experts
accident rate
decreased by more
than 30 percent in
comparison to
the previous year.
were various safety inspections and advising
executives as they carried out risk assessments.
The reporting and the target systems for work
safety were also completely revised. The occu-
pational accident rate (number of occupational
accidents per million working hours) decreased
by over 30 percent as against the prior-year
period.
A Word of Thanks to Our Employees
Our employees play an active role in Porsche's
success story in their day-to-day work. This
success is a direct reflection of their high level
of commitment, their knowledge and their
passion across all locations. The Executive
Board would like to personally thank each and
every employee for their contribution. This
gratitude also extends to all of our employee
representatives for their ongoing commitment
to the interests of our workforce and in this
way, their contribution to making our Company
future-ready.
Porsche Employees
at the Sites in Germany*
Sachsenheim
500
10 Employees
The occupational
class matches
at the Porsche Tennis
Grand Prix 2015.
2,500
spectators visited
the ballet in the
courtyard of
the New Palace
in Stuttgart.
175,000 Euro
were raised at the
911-sponsored run by
Porsche employees for
various charity projects.
Social Commitment
The foundation of Porsche's social commitment
is to support children and provide opportunities
for disadvantaged people. The sports car manu-
facturer's focus in Germany is on supporting
social projects at its locations. Outside Germany,
Porsche is committed to sustainable projects
in partnership with reliable local partners.
Six-hour Run for Charity
In Germany, Porsche supported children's wards
and clinics such as the Olgäle in Stuttgart,
as well as foundations and associations such
as Trott-war, a street newspaper that aims to
help socially excluded people to return to work.
Disadvantaged young people work towards
apprentice placements as part of Joblinge, an
initiative run by the job centre in Stuttgart.
The programme helps them find internships and
receive job application training, and supports
them in retrospectively completing their school
education. Porsche supports similar projects
in its other locations such as Leipzig, Ludwigs-
burg, Bietigheim-Bissingen and Weissach.
7,000
The first-ever 911-sponsored run by Porsche
staff took place in the reporting period.
Approximately 3,000 employees took part in
the six-hour run for charity over an exactly
911-metre course through the grounds of the
Porsche plant in Zuffenhausen. They were
led by CEO Oliver Blume, Porsche's Executive
Board and its works council, who ran side-by-
side with employees. The 350 independently
organised teams completed as many laps of
the 911-metre course as possible, with Porsche
donating 5 euro for each complete lap. After
the Executive Board had rounded up the total,
the 29,463 laps completed overall raised
175,000 euro for the Olgäle children's charity,
Stuttgart Hospital and the Breakfast for
Children (Frühstück für Kinder) campaign.
Porsche is training children from disadvantaged
backgrounds as car mechanics as part of the
Porsche Training and Recruitment Centre Asia
project in Manila, Philippines. More than 250
young adults have already graduated from the
project and are now employed as specialists
at the Porsche Centres in growth markets. Audi
and VW also joined the partnership in the report-
ing period. The number of trainees per year will
be increased from the current figure of 32 to
approximately 145 by 2017. The education facility
was upgraded and expanded by 1,500 square
metres in 2015.
250
young employees in
Manila attended training
at the Porsche Training
and Recruitment Centre
in Asia.
87,000
young people attend the
GaraGe Leipzig Training
Workshop annually.
Science & Education
Igniting passion for technology - with practical
application: this is Porsche's objective in sup-
porting schools and universities. Porsche pro-
vides start-ups with the opportunity to launch
their business at Leipzig University of Applied
Sciences. The sports car manufacturer aims
to raise young people's interest in engineering
careers with the Porsche Student Workshop
at the Association of German Engineers (VDI)
GaraGe in Leipzig.
Help for Start-ups
Since 2013, Porsche has sponsored the Chair
of Strategic Management and Family Business
at the Leipzig Graduate School of Management.
This privately-funded institution is a leading inter-
national business school. Porsche supported
the SpinLab project in financial year 2015, which
provides start-ups with offices and equipment
to launch their businesses. The sports car manu-
facturer established an endowment chair at the
Esslingen University of Applied Sciences, which
is devoted to areas including modern vehicle
manufacture. Porsche traditionally supports the
Center for Advanced Studies in Heilbronn, the
University of Stuttgart, the Karlsruhe Institute
of Technology and the RWTH in Aachen with
numerous partnerships. In addition, Porsche
runs its own doctoral programme, supports
Femtec the international platform fostering
young female talent in MINT careers - and
awards numerous Germany Scholarships.
Young people aged between 12 and 18 are taught
technical skills at the GaraGe, the technology
centre of the Association of German Engineers,
in Leipzig. Porsche has supported the project
financially and has provided equipment for the
Garage for 14 years. Young people can tinker
with a 911, look inside the engine and carry out
electronics tests themselves. The training
workshop is aimed at encouraging the students'
affinity for technology and raising their interest
in engineering careers. Around 87,000 students
have already completed courses at the training
workshop. The Garage in Leipzig was renovated
in the reporting period and expanded to include
a new module, the Worlds of Technology Educa-
tion (Techniklernwelten).
Education for Syrian Refugee Children
Outside Germany, Porsche supported the City
of Stuttgart in its partnership with the United
Nations Children's Fund (UNICEF) in the reporting
period. Stuttgart is twinned with the Syrian-
Turkish border town of Mardin and is helping to
build education centres for Syrian refugee
children. With the new schools and preschool
centres, Porsche's aim is to contribute to giving
the young people of Mardin perspectives. The
partnership began on November 20, 2015 - the
anniversary of the UN Convention on the Rights
of the Child and is initially limited to one year.
Annual Report Porsche AG 2015
Porsche feels a particular responsibility to the
young talent of the Stuttgart Ballet. Ground was
broken for the John Cranko School in Stuttgart in
the period under review. A subsidy from Porsche
in the total amount of 10 million euro guarantees
that the construction will go ahead. The plan is
for Stuttgart's young ballet students to move into
their new premises in the summer of 2018. The
building will be situated on a hill overlooking the
Alte Staatsgalerie with a view of the opera house,
the home of the ballet. Three-quarters of the world-
famous Stuttgart Ballet's dancers are graduates
of the company's own school. The plan is for the
training centre to include a rehearsal stage with
space for an audience of 200, practice areas for
150 people and accommodation for 70 students
in the future.
Porsche has been the main sponsor of the
children play at the
Porsche Basketball
Academy (BBA)
in Ludwigsburg.
Entry into Professional Golf
Porsche has entered professional golf for the
first time as title sponsor of the Porsche Euro-
pean Open, expanding on its long-term involve-
ment in the amateur game. The sports car
manufacturer has organised the Porsche Golf
Cup, a worldwide amateur tournament series
for customers, for 27 years. This invitation-
only series saw more than 8,000 customers
play at 150 tournaments in 17 countries in
the reporting period.
The inaugural Porsche European Open at
Europe's largest golf resort in Bad Griesbach
drew more than 25,000 spectators over four
days. Winning the European Open is a major
accolade for professional players - it is one of
the oldest tournaments on the European Tour
and enjoys worldwide recognition. The starting
field included 15 current and past Ryder Cup
players and four current majors champions. The
tournament was won by Thailand's Thongchai
Jaidee, one of the best-known golfers in Asia.
The leading German player was Bernhard Langer.
Turbo for Talents Youth Programme
Turbo for Talents is the umbrella term for
Porsche's involvement in sponsoring talented
young players in popular sports. The aim is
to encourage more young people to participate
in basketball, ice hockey and football at the
Company's locations. One of the sports car
manufacturer's objectives is to improve both
the sporting and social skills of young people
in the regions. The programme follows a clear
strategy and promotes the social role of sport.
Porsche works locally with the respective clubs
to ensure continuous involvement.
In Ludwigsburg, approximately 2,500 children
from the surrounding area regularly play basket-
ball under professional guidance at the Porsche
Basketball Academy (BBA). The BBA brings
together eleven partner clubs and 55 partner
schools in the region. Its goal is to get young
people interested in basketball, regardless of
their background and education. One motiva-
tional factor is the nationwide success of Porsche
BBA youth players: the under-16 team from
Ludwigsburg won the German championship
for the first time in 2015. Porsche has been
the BBA team's main sponsor for one year.
The sports car manufacturer has been supporting Culture
work with the up-and-coming ice hockey players
of the SC Bietigheim-Bissingen Steelers since
2014. The young players receive professional
support from a number of full-time coaches. The
Porsche Ice Hockey Camp provides a venue to
try out innovative training methods. The Steelers
offer on-site taster courses at schools and
preschools in the local area to increase the popu-
larity of ice hockey among approximately 1,000
children.
Stuttgart Ballet, one of the world's leading ballet
companies, for many years. The company's high
technical standard and broad stylistic repertoire
draw artists from around the world: the 2015
season saw 65 dancers from over 20 countries
perform in Baden-Württemberg's state capital.
The company toured Japan and Korea as part of
international guest appearances in the reporting
period and delighted audiences with the Ballet in
the Park event in its home city of Stuttgart. For
a whole weekend, the company's performances
were broadcast live from the opera house on a
public projection screen in the courtyard of the
city's New Palace. The reporting period saw
more than 7,000 people enjoy top-class ballet
there set to music by Tchaikovsky.
Porsche became involved in youth work for the
third-division football teams Stuttgarter Kickers
and SG Sonnenhof Großaspach in the reporting
period. The partnerships initially run for three
years. Porsche is also the namesake of the
Kickers' football academy in Degerloch, which
aims to obtain German Football Association (DFB)
certification as a DFB youth training academy
(DFB-Nachwuchsleistungszentrum) thanks to
Porsche's involvement. The Kickers expect this
seal of quality to lead to a sustainable youth pro-
gramme with nationwide renown. With Porsche's
help, the Blues' annual football camp also aims
to open its doors to disadvantaged young people.
Porsche has been the official partner of the SG
Sonnenhof Großaspach youth academy since the
year under review began. The sports car manu-
facturer supports the team's Second Way pro-
gramme, which motivates the club's players to
safeguard their future careers. The initiative
helps the young people to complete their school
education or learn a profession in addition to
their football careers.
Porsche supports world-class cultural centres
with tradition in Baden-Württemberg and Saxony.
The sports car manufacturer's aim is for people
at its main locations to enjoy and have access to
outstanding cultural experiences.
Open Air Concert in the Leipzig Rosental
The Leipzig Gewandhaus Orchestra is one of the
world's leading classical ensembles (fourth place
in the Bachtrack rankings). The orchestra was
awarded the ECHO Klassik, one of Germany's
most important prizes for classical music, in the
reporting period. Porsche has been the main
sponsor of the Gewandhaus concert hall in Leipzig
since 2011. The Klassik airleben series is the
summer highlight of the Leipzig concert season
and is part of Leipzig's musical culture. With
theirunique flair, the concerts draw audiences to
the Leipzig Rosental at the end of the Gewandhaus
Orchestra's season. More than 50,000 people
enjoyed Mendelssohn's Lobgesang symphony-
cantata and opera classics by Wagner, Verdi and
Puccini in the reporting period. Arriving with
picnic baskets and blankets, thousands of Leipzig
residents savour the two nights in a relaxed
atmosphere under the open sky each year. Thanks
to Porsche, both open air concerts have been
genuine concerts for all since 2014, with visitors
enjoying the Gewandhaus Orchestra's perfor-
mances free of charge.
Porsche hosted the Leipzig Opera Ball for the third
time in the reporting period. The event is con-
sidered the city's civic ball and has been held as a
celebration for Leipzig's residents for 21 years.
This year's ball celebrated the 50th anniversary
of diplomatic relations between Germany and
Israel. Under the slogan "Shalom Israel", 2,200
international guests enjoyed a glamorous eve-
ning with Middle Eastern flair. Porsche presented
the Leipzig Opera Ball Sophisticated Fashion
Award the ball's own fashion prize for young
designers for the first time. Porsche extended
its partnership with the Leipzig Opera Ball for
a further three years in the reporting period with
the aim of promoting cultural diversity at its
locations.
50,000
visitors enjoyed the
Leipzig Gewandhaus
Orchestra in the
2015 season.
Employees, Sport and Society
75
Annual Report Porsche AG 2015
76
Ballet in the Park in Stuttgart
Porsche and second-division football team
Rasenball Sport Leipzig launched the Leipzig
Quarter Finals youth tournament in financial year
2015. Young football fans from the region com-
peted against each other in four Leipzig neighbour-
hoods for the first time in 2015, regardless of
where they go to school or the teams they play
for. The football project provides a platform to
draw children away from their games consoles
and back to the sports ground. Porsche also
enables disadvantaged children to take part in
the RB Leipzig football academy, where they
complete training under professional guidance.
Philippine citizens per year group will
receive training as automotive
mechatronics engineers as of 2016.
71
Since October 2015, Porsche Catering has also
supported the food banks near Porsche's three
locations in Stuttgart, Weissach and Leipzig with
donations in kind (food and hygiene products)
to help them cope with the influx of refugees.
D
UB
AI
for choosing Manila as a location for the
PTRCA. Jayson Supan's story shows
that this was and is the right approach.
Jayson is one of the 250 young people
who, since the launch of the PTRCA,
have made use of the opportunity to
gain a better life for them and their fami-
lies by training to become an automo-
tive mechatronics engineer. In his home
village, Jayson is seen as a person who
has helped his family to achieve modest
affluence. For example, the family's
new two-storey, solid brick house is wit-
ness to Jayson's success. His parents
have two model cars from Porsche on
a small table in their living room which
they treasure, along with the framed
school certificates that hang on the wall.
The Supans have set up a micro busi-
ness with the money sent home from
Dubai. The typical vehicle used by Filipi-
nos stands in the driveway: a Jeepney.
This relict from US colonial times is a
converted Jeep that is generally used as
a collective taxi. The colourfully painted
vehicle is used by the Supans to trans-
port goods. They have painted the
words "fruits and vegetables" in curved
letters on the body. Every Saturday
Jayson Supan (right) with the After Sales
trainer Richard Carvalho in the Dubai workshop.
morning in the very early hours, the
Jeepney is driven to the market of a
neighbouring town loaded with mangos,
pineapples, bananas and watermelons.
The father employs a neighbour as
his driver, thus spreading the family's
success further. He does not have a
driving licence himself.
Back to Jayson Supan at the workshop
in Dubai, directly on the highway
between the huge Dubai Mall, which
boasts the world's tallest skyscraper,
Burj al Khalifa, and the eastern outskirts
of the city. Jayson now feels quite at
home in the glamorous metropolis. Of
course he still misses his family, even
though he has many contacts among
the Filipino community in Dubai. No
weekend goes by without the guys cook-
ing and partying together. That eases
their feelings of homesickness: "What
I miss most is the shared meals with
my parents and brothers." But when
he sees what his family has achieved
during his annual four-week holiday
at home, he knows: "It was the right
decision. Thank you, Porsche, for this
fantastic opportunity!"
Promotion of Young Talents II
67
Annual Report Porsche AG - 2015
68
Employees,
Sport
and Society
Employees
Porsche was very successful in financial year 2015, thanks once again to
its employees. The key human resources tasks at Porsche are to recruit and
foster young talent, to integrate new staff and to provide employees with
the optimal conditions and opportunities for their continuing development.
In addition, the focus in the reporting period was on the new measures
to safeguard the sites and on numerous other initiatives and programmes.
Number of Employees
of the Porsche AG Group
22,401
19,456
17,502
15,307
24,481
2011 2012 2013 2014 2015
"It is nothing unusual for the inhabitants
of the Philippines to work all over the
world. They benefit here from their Eng-
lish language skills and their good work
ethic," explains Michael Drolshagen,
Head of After Sales at Porsche AG, when
naming the most important reasons
A model of success sets a precedent. The
brands Audi and Volkswagen are to be-
come new cooperation partners of the
PTRCA via Audi Volkswagen Middle East.
Instead of the recent 32 apprentices
per year, in 2016 there will be 120 and
in 2017 even 145 young men and
women being trained to become auto-
motive mechatronics engineers for
state-of-the-art technology, and from
2017 bodywork engineers as well. At
the present time, a new 6,000-square-
metre training centre is being built
on the grounds of the Don Bosco Insti-
tute. A surface area of 1,500 square
metres alone has been designated for
theory rooms and workshops for Audi,
Volkswagen and Porsche.
Porsche has been cooperating with the
Salesian Society of Don Bosco in Manila
for eight years. Young people from the
poorest of backgrounds and a sports car
manufacturer. The combination of Don
Bosco and Porsche - does it work? He
felt a little like a doubting Thomas at
first, says Christian Osterhaus, Managing
Director of the NGO Don Bosco Mondo
e.V., which is based in Germany. But
Osterhaus is absolutely certain about one
thing, not least since his visit to Manila
at the end of last year: "Yes, it works!"
all is "their good manners and their disci-
plined attitude to work," he says. The
highly qualified technicians are a great
support from the very beginning. And
thanks to their very hard-working nature,
they manage to develop themselves
further in only a few years. On the week-
ends the men from Pakistan and India
cheer on their Filipino colleagues at a
basketball tournament. And they return
the favour as loud fans at a cricket game.
"It's a sport that Filipinos really can't play,"
says Carvalho laughing.
apprentices will start their training to
become automotive mechatronic engineers
or bodywork engineers in 2017.
M
AN
IL
A
In training, theory
and practice are
taught closely
interlinked from the
very beginning.
65
Annual Report - Porsche AG - 2015
66
Jayson's mother proudly shows her son's certificates. Jayson's parents and his
younger brother in their new living room and in front of the new delivery van (photo below).
Prosperity that would not be possible without Jayson's job in Dubai.
The headcount rose again in financial year
2015. As at the reporting date of 31 December
2015, Porsche AG employed 24,481 people -
9.3 percent more than in the previous year.
And yet at the beginning it was difficult
for him to be thousands of kilometres
away from his family. But thanks to his
strong faith and the soon-established
close friendship with his colleagues,
it was not long before the desert country
and the Porsche Center became his sec-
ond home, allowing him and his family
a financial basis that lies far above the
first pay check lots of times, because
I couldn't believe how high my salary
was," Jayson says with a warm laugh.
Richard Carvalho, After Sales trainer, is
something like a mother to the group
of young technicians. A citizen of India
and with an unusual hairdo, he has a
very cheerful disposition. Thanks to his
warm nature, he is able to drive away
the first feelings of homesickness
among the new arrivals. When new tech-
nicians are needed, he immediately
allocates them to colleagues from other
countries. Pakistanis, Indians, Filipinos
are the largest national groups in
the large Porsche team in Dubai. His
team-building activities work for people
of very different nationalities. What
he appreciates among young people
from the East Asian island state above
8
years of cooperation between
Porsche and the Salesian Society
of Don Bosco in Manila.
250
young people have already made use of the chance of a
better life by completing their apprenticeship at the PTRCA
to become an automotive mechatronics engineer.
Private
Philippine average. "I looked at my
Safeguarding Our Sites from 2015 to 2020
The Executive Board and the general works
council adopted a groundbreaking package of
measures to safeguard the continuing existence
of the sites. Porsche is investing over 1.1 billion
euro in the Zuffenhausen, Ludwigsburg and
Weissach locations. The new "Fit for the Future"
agreement also aims to boost the Company's
productivity, flexibility and efficiency while
maintaining Porsche's high social standards for
employees. Among other things, represen-
tatives of both employers and employees
have ruled out redundancies until 2020 in the
agreement.
It was agreed that all current and future gener-
ations of the 911 and Boxster models will be
produced in Zuffenhausen for the term of the
agreement. In addition, the Cayman model series
will be built in Zuffenhausen from August 2016.
The large number of construction projects in
Zuffenhausen and Weissach are another clear
sign of our commitment to Stuttgart as a busi-
ness location. The construction work in Zuffen-
hausen includes for example the new engine
plant with an area of 10,000 square metres,
and the new body shell production facility.
Significant investments are also being made
in Weissach. A new drivetrain testing facility is
being built to meet the demand for current and
future drivetrain and engine development, and
there are also plans to extend the motorsport area.
Another key tool for increasing the percentage
of women in the Company is long-term talent
promotion to establish an ongoing pipeline of
qualified women. Porsche has a number of initia-
tives to reach out to and establish ties with
female university students at an early stage. For
instance, the partnership established in 2001
with Femtec, the international career platform for
women in engineering and the natural sciences,
was successfully expanded in 2015. A particular
highlight in the reporting period was the Femtec
innovation lab, a practical project spanning sev-
eral months in which students analysed, trialled
and evaluated optical measuring technology
systems. In addition, Porsche once again took
part in the Germany-wide Girls' Day event. The
day gave over 130 girls from local high schools
and secondary schools insights into technical
occupations at Porsche.
Porsche successfully increased the percentage
of female DHBW students by 21.2 percentage
points between 2011 and 2015, and the percent-
age of female trainees by 6.9 percentage points
in the same period thanks to numerous measures
to promote young talent.
130
girls from local high
schools and secondary
schools gained an
insight into technical
occupations at Porsche
on the Germany-wide
Girls' Day event.
Porsche received the 2015 Total E Quality award,
which is sponsored by the German federal govern-
ment, in recognition of its successful commit-
ment to promoting equal opportunities within the
Company.
Goals for the Percentage of Women on the
Supervisory Board and Executive Board,
and in Management
As part of the implementation of the German
Act on Equal Participation of Women and Men in
Executive Positions in the Private and Public
Sector (Gesetz für die gleichberechtigte Teilhabe
von Frauen und Männern an Führungspositionen
in der Privatwirtschaft und im öffentlichen Dienst),
Porsche AG is required to set targets for the
percentage of women in the Supervisory Board,
the Executive Board and the top management
levels.
The percentage of women on Porsche's Super-
visory Board was 10 percent as of the date by
which the law stipulated that a specific target
had to be set. The members of the Supervisory
Board are elected until at least 2019. In light
of this, the Supervisory Board set a target for the
percentage of women on Porsche's Supervisory
Board of 10 percent until December 30, 2016.
As of the date by which the law stipulated that a
specific target had to be set, all positions on the
Executive Board were held by men. The respec-
tive contractual terms extend beyond 2016. In
light of this, the Supervisory Board did not resolve
to adjust the target for the percentage of women
on Porsche's Executive Board in the period up to
December 30, 2016.
Porsche AG set the following targets for the per-
centage of women in management: the percentage
For Porsche, affording equal opportunities
means fostering the professional development
of employees and executives as best possible
based on their individual potential, independent
of gender or ethnicity. Increasing the percentage
of women at all levels is a key step on the path to
greater diversity. This is firstly being implemented
by integrating measurable, mandatory targets in
the goal agreements of all executives. Alongside
these targets, the equal opportunities portfolio
also includes training and professional develop-
ment measures such as workshops and seminars,
as well as networking events for female special-
ists and executives and mentoring initiatives.
Porsche successfully increased the percentage
of women in the first executive level by 7.7 per-
centage points between 2011 and 2015, and the
percentage of women in the second executive
level by 2.6 percentage points in the same period
thanks to numerous measures.
of women in the first executive level should
9.3%
The percentage of
women in the first
executive level should
be 9.3 percent as
of the end of 2016.
Internal Initiatives and Programmes
The increase in the number of employees at
Porsche AG over the past several years and the
associated challenges were essential compo-
nents of the 2018 HR strategy, which success-
fully responded with specific HR measures as
part of the ongoing "Excellent human resources
management" programme.
HR processes were further optimised and
made more efficient in the networked projects
as part of the Porsche improvement process.
The continuous expansion of the HR IT system
means that HR information is now more
up-to-date and transparent, and large amounts
of information can now be channelled.
The Group-wide employee survey was suspended
at Porsche AG in the reporting period. However,
employees at five German subsidiaries and
Porsche AG's international subsidiaries were
surveyed. Employees expressed their opinions
on issues such as collaboration with colleagues
and supervisors, quality of work, work pro-
cesses and provision of information on current
developments at Porsche.
As the number of employees at Porsche's sites
in the greater Stuttgart area increases, so does
the volume of traffic. In cooperation with the
city of Stuttgart, all employees were surveyed
on their commutes and work-related travel.
The aim of the survey was to identify potential
for improvement in the traffic situation and
to integrate this into urban planning. One focus
was how to reduce private transport (for
example through use of local public transport
or carpooling).
Refugee Aid
In October 2015, Porsche called on its employ-
ees to help support and integrate refugees
by volunteering for charitable associations and
refugee organisations. Volunteer positions
and testimonies from employees who already
volunteer for refugee groups are published on
the porsche-hilft.de website.
be 9.3 percent as of the end of 2016, and the
percentage of women in the second executive
level should be 8.0 percent.
Employees, Sport and Society
Equal Opportunities and Diversity
Flexible arrangements regarding where and when
employees work are also a focus at Porsche. In
addition to the option of working from home and
options for setting working hours based on an
employee's life situation, a work agreement on
sabbaticals introduced additional related oppor-
tunities for employees. By offering the option
Employer Appeal and Work with Young Talent
The foundation to ensure success in human
resources work is to position Porsche in the long
term as an attractive employer and to support
the numerous young talent initiatives.
In the reporting year, as in previous years,
Porsche occupied top spots in prestigious
employer rankings. Porsche placed third in both
the engineering and business categories in
the Universum study. The Trendence study also
found that Porsche is among Germany's top-
three most popular employers for engineers and
business professionals. This is also reflected
in the number of job applications. The Porsche
Group received over 140,000 applications in
2015. This is a new record and corresponds to
an increase of around 40 percent compared
with the previous year.
During the reporting year, Porsche continued to
pursue close cooperation with key organisations
promoting young talent such as Formula Student
Germany, the international student organisation
AIESEC, the Foundation of German Business and
Femtec. Porsche also awarded 44 scholarships
as part of the German Ministry for Education and
Research's "Germany Scholarship" initiative and
took part in the "Porsche Automotive Campus"
(PAC) scholarship programme at Nürtingen-Geis-
lingen University in financial year 2015. In addi-
tion, a professorship for modularisation in vehicle
development was established within the vehicle
technology faculty at the Esslingen University
of Applied Sciences in 2015 with the financial
support of Porsche.
The Ferry Porsche Prize was awarded for the
fourteenth time. Awards were presented at our
development centre in Weissach to the 251
school leavers with the best maths, physics
and technology grades in their year.
+40%
The Porsche Group
received over
140,000 applications
in 2015.
251
excellent high school
leavers were awarded the
"Ferry Porsche Prize"
Education and Professional Development
Forward-looking, requirements-based education,
continuous training and internal advancement
opportunities and paths are pillars of Porsche's
human resources policy. In light of this, Porsche
offers a comprehensive programme ranging
from vocational education to development
programmes for senior executives.
of a sabbatical, Porsche enables its employees
to achieve a better work-life balance.
Porsche's wide array of vocational and profes-
sional training programmes encompass a total of
ten qualified careers in technical and business
subject areas, as well as seven courses of study
in partnership with Baden-Württemberg Cooper-
ative State University (DHBW). The past financial
year saw a total of 150 young people begin their
training in the various careers and courses of
study on offer at Porsche AG. The new training
centre, which opened in September, is state-
of-the-art in the industry.
The Porsche Trainee Programme opened its
doors to graduates in November 2015 for the
second time ever. The 12-month programme
gives participants the opportunity to complete
a number of projects and practical assignments
in Germany and abroad.
In cooperation with Production, two new pilot
development programmes were launched in
financial year 2015 as part of the integration of
department-specific requirements into Porsche's
development paths. The aim is to foster ongoing
personal and professional development and
to systematically prepare employees to take
on additional tasks.
The roll-out of the international Porsche
Advanced Management Programme in the year
under review boosted the quality of the training
options available to senior executives in the
Porsche Group. The programme was developed
Employees, Sport and Society
69
Annual Report Porsche AG - 2015
70
with leading global business schools and focuses
on developing international leadership skills in
top management.
Employee secondments to international markets
and national subsidiaries are further cornerstones
of the Company's employee development initia-
tives. Long-term employee development planning
at all levels ensures that Porsche employees can
now be appointed to 85 percent of vacant manage-
ment positions.
Further improving the work-life balance remained
a key area of activity in the reporting period.
For example, information events were offered to
expectant parents and employees on parental
leave, networking events were launched for staff
on parental leave and the number of day-care
slots was increased. In addition to the day-care
services offered at the Weissach and Zuffen-
hausen sites during the six-week summer holidays
last year, a range of day-care opportunities
were also available for all other school holidays
(excluding Christmas).
Porsche supports its current employees at all
levels and over all career stages in developing
and enhancing their skills, both for current and
future or additional tasks. The focus of "Porsche
Warm-Up" is on training from day one and on
quickly establishing a cross-departmental
network. All new employees gain a comprehen-
sive overview of Porsche as a company and
learn about the work performed by the different
departments in the two-day orientation event.
Employees, Sport and Society
77
911 Carrera PDK
19 back to Nico
hands start number
laps, Earl Bamber
Clever manoeuvring
at dawn: after 249
Safety
06:15
Hülkenberg again.
Hülkenberg is called
L
Annual Report - Porsche AG - 2015
89
Эфемер
DMG MORI
WEC - Le Mans
88
90
into the pits after
276 rounds.
Porsche uses a
longer neutralisation
phase for a full
service, changes
19
19
START NUMBER
Earl Bamber - 24, New Zealand
Nick Tandy - 30, United Kingdom
Nico Hülkenberg - 27, Germany
DRIVERS
DMC
DM
MG MORI
C
FARD
OMG MORI
SHOP
the track as front
runner.
the rear wing, the
tyres - and the
driver again: Nick
Tandy gets back on
the engine cover,
Annual Report Porsche AG 2015
SCHLEPTLES
FAG
17
WEC 2h LEMANS P1
who took over the
But Nico Hülkenberg (19),
(17) back to fourth place.
Hartley and Mark Webber
of Timo Bernhard, Brendon
throws the leading trio
night. A stop-and-go penalty
As so often happens -
everything's different at
Change Up Front
23:59
86
Annual Report - Porsche AG - 2015
85
DMG MOR
19
919 Hybrid again from
ONG NO
Earl Bamber after 91 laps,
moves into first place at
"The race is very fast."
MF CE
PSCHE
LIGENT
Mabic
CHOPARD
PORSCHE
DMG MOR
MORI
Timo Bernhard (17) hands over the wheel after 52 laps in round 188 to Brendon Hartley, who passes the
wheel to Mark Webber at 5:47 after 240 laps. Start number 18 has problems, Romain Dumas takes
over the car from Marc Lieb at 4:24 in sixth place. And who's in the lead? The Le Mans rookies with start
number 19 work like clockwork and complete their fourfold stints confidently. Earl Bamber is at the wheel.
Everyone is wide awake at Porsche. Long intervals between tyre changes, strong driver performance
and formidable pit stop times push the 919 Hybrid forward. Success tactics - all three race cars drive
quadruple stints. Drivers and tyres are only changed after four refuels.
02:47 Team Effort
17
START NUMBER
Timo Bernhard - 33, Germany
Brendon Hartley - 25, New Zealand
Mark Webber - 38, Australia
DRIVERS
DMG MORI
17
midnight. Bamber:
DMG MORI
AOPANT
DMGRI
The 2.22 kilowatt-hours of electrical energy correspond to
eight megajoules - and that is the highest energy class
the rules permit. Porsche was the first and only manufacturer
in 2015 to venture this far. Audi and Toyota were only able
to demonstrate four and six megajoules respectively. The
reason Porsche was confident enough to achieve this peak is
thanks to a bold and fundamental decision.
Therefore the driver has to be frugal so that he has enough
fuel at the end of the round and not one drop has been con-
sumed more than permitted, and preferably not less either. It
is a balancing act: if he consumes more, he will pay for it later.
If he consumes less, he loses on performance. The trick is
to stop boosting electrical energy at exactly the right moment
as well as step off the accelerator at the right moment.
hard. So far, so good. However, both energy sources are lim-
ited: the car is not allowed to use more than 4.65 litres of
petrol per lap and not more than 2.22 kilowatt-hours of elec-
trical energy.
330 km/h, the turbine in the exhaust tract has to work very
PORSCHE
INTELLIGENT
PERFORMANCE
PORSCHE
OMG MORI
19
CHOPARD
The V4 direct fuel injection with turbo charger is integrated into
the chassis as a central engine. The batteries in the centre of the
vehicle supply the electric engine on the front axle with power.
The Hybrid Powertrain of the Porsche 919 Hybrid.
Particularly on the extremely long Hunaudières straight
stretch, where the 919 Hybrid gets up to speeds of over
On the one hand, the driver puts his foot down full on the
accelerator and accesses the fuel energy - on the other,
he boosts electrical power from the battery. While the
combustion engine drives the rear axle, the electric engine
is in charge of the front axle. The 919 Hybrid is propelled
out of the bend with four-wheel drive - and is once again
recovering power at the same time.
The interaction between these two power sources requires
an elaborate strategy. On the track, it works like this:
with each braking phase, the battery stores the energy and
it is recuperated. On one of the 13.629-kilometre laps in
Le Mans, this happens 38 times before each bend. Some-
times with more intensity, sometimes less. This depends
on how hefty the manoeuvre, that is, the speed at which the
drivers go into the bend and how sharp the following bend
is. Up to the apex of every bend, the driver brakes and
recuperates, then he accelerates again. This is the moment
that as much power as possible needs to be available.
means precisely when it is needed: the driver wants to
accelerate and obtains the power at the touch of a button.
The combustion engine's output is "well over 500 hp,"
says Hitzinger, while the power from the electric engine is
"well over 400 hp."
Mobil
"The choice of concept was inspired by us looking at each of
the various alternatives in detail," Hitzinger reflects. It was
immediately clear that we would use the braking energy from
the front axle. Engineers call this a "no-brainer" - large
energy gains on partially familiar terrain, coupled with major
further developments. "As the second system, the brake
energy recovery on the rear axle or the exhaust energy recov-
ery came into question." Two aspects spoke in favour of the
exhaust solution. First, the weight and second, the efficiency.
"To recover braking energy, the system has to recuperate
the energy in a very short time, so it has to handle a lot of
power, meaning more weight. However, the acceleration
phases are far longer than the braking phases, so the system
recovers for longer and that makes it lighter. "Besides"
Hitzinger adds, "we already have a drive on the rear axle with
the combustion engine. With even more power at the rear
we would create more slippage. "Slippage is practically the
opposite of efficiency and also ruins the tyres."
Kinetic energy is converted into electrical energy at the
front axle when braking. Besides the turbo charger, a
second, intelligent turbine is fitted in the exhaust tract,
which converts excess energy into electrical energy.
The proportion of braking energy amounts to 60 percent
and energy from the exhaust gas is 40 percent. The
regenerated electric power is stored in a lithium-ion
battery and feeds the electric engine on demand. That
Probably the boldest fundamental decision: Hitzinger opted
for 800 volts for the hybrid system of the 919. "Determining
the voltage level is a major decision for the electric drive,"
he emphasises; "it affects everything - battery design, elec-
tronics design, electric engine design, charging technology
and charging infrastructure. We went as far as it was possible
to go." It was difficult to find parts for such a high voltage,
especially a suitable storage medium. Flywheel accumulator,
super capacitors or battery? Hitzinger decided on a liquid-
cooled lithium-ion battery. It has hundreds of single cells, each
enclosed in separate cylindrical metal capsules, seven centi-
metres high and 1.8 centimetres in diameter.
If we transfer this to an electric car for everyday use, battery
capacity means range. "This is where the requirements of
race cars and electric cars for the road differ," says Hitzinger,
"but, for the 919, we have advanced into in the area of hybrid
management to an extent that was previously unimaginable."
In the Mission E, so-called permanent magnet synchronous
engines are provided - in effect these are the non-racing
brothers of the motor generator unit (MGU) from the winning
Le Mans car. "The 919 was the testing ground for the volt-
age level of hybrid systems," Hitzinger says, not without pride.
This experience gave our production series colleagues the
courage to introduce the Mission E design study with 800-volt
technology. From the race track to the road: perfect team-
work à la Porsche.
in billion euro
Development Costs
Research and
The Cayman GT4 celebrated its world premiere at the Geneva Auto Show at
the beginning of March 2015. The engine, chassis, brakes and aerodyna-
mics of the Porsche GT family's new member have been designed for maxi-
mum driving excitement. Under the bonnet is a 385-hp (283-kW) 3.8-litre
six-cylinder Boxer engine derived from the power plant of the 911 Carrera S,
which propels the mid-engined sports car from 0 to 100 km/h in 4.4 seconds
and reaches a top speed of 295 km/h. Its combined fuel consumption is
10.3 l/100 km (New European Driving Cycle - NEDC).
Sensational Global Launches
Development
Research
and
Annual Report Porsche AG 2015
93
WEC - Le Mans
The Single Electric Engine
provides its power on demand via
a differential on both front wheels.
The state-of-the-art battery power
centre is positioned in the centre
of the vehicle.
> 400 hp
a V4-cylinder engine with direct
fuel injection, turbo charger and
exhaust energy recovery system
Performance and Efficiency:
> 500 hp
For a road-going model, as well as a race car, there needs
to be a balance between power density and energy density.
The higher the power density of a cell, the faster it can be
charged and release energy again. The other parameter, the
energy density, determines the amount of energy that can
be stored. In racing, the cell must - figuratively speaking -
have a huge opening. Because as soon as the driver stamps
on the brake, it needs to take in a huge amount of power all
of a sudden, and when he boosts, it has to act just as fast to
release it again. In layman's terms, it's like this: if the dis-
charged lithium-ion battery in a smartphone had the power
density of a 919 battery, it would only take about twenty
seconds to charge it to 100 percent. The disadvantage would
be: a very short call - and then all the juice would be gone
again. The energy density, in other words the battery capacity,
is crucial to keep the smartphone running for days on end.
KFAG
Courage is all about the power of imagination. Alexander
Hitzinger, Technical Director of the LMP1 programme,
can imagine plenty and pulled out all the stops with the
Le Mans winner, the Porsche 919 Hybrid. Particularly
for the drive concept. Just to remind you, it consists of
a two-litre four-cylinder turbocharged petrol engine, the
most efficient combustion engine built by Porsche to
date, and two different energy recovery systems.
Electrifying
Strategy
14:55
Is the dream really coming true? The computer can't lie. If nothing else goes wrong, victory
should be in the bag. The Audis are not going to come back now. It looks like a double
victory for Porsche. And typically for Le Mans, the trio with the least experience (Bamber
and Hülkenberg celebrate their Le Mans premiere, Tandy drove in the GTE-Pro class with
a 911 RSR last year) steer their way to triumph. For the last time the driver is changed for
the car with start number 19. Nico Hülkenberg takes over for the final kilometres.
13:25 End Spurt
Confidence rises in the Porsche pit. Bamber, Hülkenberg and Tandy simply refuse to
let the Audi competition get nearer. But better still, Bernhard, Hartley and Webber
have fought their way to second place with number 17. And number 18 with Dumas,
Jani and Lieb gains ground and moves up to fifth place.
Anticipation
12:02
18
START NUMBER
Marc Lieb - 34, Germany
Romain Dumas - 37, France
Neel Jani - 31, Switzerland
DRIVERS
Tobil
Арме
26
vodale
CHO
Emotional
Overwhelming victory with the most complex
car, with the most complicated rules: with the
LMP1, Porsche demonstrates its engineering
supremacy in racing.
Head of LMP1 Fritz Enzinger has tears in his eyes.
The final word: he should wait for Brendon Hartley
92
Annual Report Porsche AG 2015
91
10
.PORS
PRS
LE MA
24
MG MORI
GMIP
CHOA
WEC Le Mans
Nico Hülkenberg (19) drives over the finishing line with Brendon Hartley
(17): double victory after 24 hours and 395 laps. Hollywood actor,
Patrick Dempsey, takes an impressive second place in the GTE-Am class.
There's no stopping the cheering. Hülkenberg takes his lap of honour
in the 919 Hybrid. He rips open the door to resounding cries of joy.
Trembling, his team mates are waiting for him and climb up onto the
podium. The inconceivable has come true.
15:00 Finishing Line
in second place for the winning photo
Hülkenberg drives to victory with aplomb.
P1
SCHAEFFLER
2-h LE MANS
Saturday Sunday
24 h
Annual Report Porsche AG - 2015
79
Porsche gained the 17th overall victory for the company at the 83rd 24 Hours of Le Mans - as a double win. The drivers,
Earl Bamber, Nico Hülkenberg and Nick Tandy, were the first to see the finishing flag with the innovative Porsche 919 Hybrid
45 years to the day after the first Porsche overall victory on the Sarthe circuit. The sister car with the driver trio of Timo
Bernhard, Brendon Hartley and Mark Webber perfected the triumph with second place. Romain Dumas, Neel Jani and Marc
Lieb took the third Porsche 919 Hybrid to the finishing line in fifth place. No other brand has achieved so much success
at the toughest endurance race in the world and is so closely bound to the legend of Le Mans.
17th Overall Victory for Porsche in Le Mans
15
G5
20
CHOP
エリ
MG MORI
MMCMORI
OR
Nick
13th
DMG MORI
June
2015
14th
WEC
18
START NUMBER
Marc Lieb 34, Germany
Romain Dumas - 37, France
Neel Jani -31, Switzerland
DRIVERS
19
Nico Hülkenberg - 27, Germany
Earl Bamber - 24, New Zealand
Nick Tandy - 30, United Kingdom
START NUMBER
DRIVERS
17
START NUMBER
Brendon Hartley - 25, New Zealand
Mark Webber - 38, Australia
Timo Bernhard - 33, Germany
DRIVERS
Le Mans
June
2015
-
World
Mob-
Eight
Acts
DAG MORI
Oved
MOTORSPORT
24
Timo
MGMORI
WEC
MORI
WEC
GM
FOR
CHORA
OMG MORI
78
Annual Report Porsche AG 2015
WEC
17
MORI
WEC
Genius in
Stroke of
BAHRAIN
SHANGHAI
FUJI
AUSTIN
LE MANS
NÜRBURGRING
SPA-FRANCORCHAMPS
SILVERSTONE
INVI
EMORI
ORKSHE
WEC Le Mans
LMP1
World Endurance Manufacturers' Champion
World 
Endurance Drivers' Champion
vo
1.05
Endurance
Championship
1. 12/04/2015 - 6 h of Silverstone
OMG
POR
MG MORI
2h
Pararte has
MICHELIN
SCHALPTUR
uvex
DMG MORI
DMC
No other company lives Le Mans like Porsche.
Even Dr. Wolfgang Porsche and Matthias Müller
accompany the team day and night in the pit.
18
bill
CHOPO
DMG MORI
16:08
PA
Front Runner
MICHELIN
WEC
CHOPARD
Mobill
PORSCHE
INTELLIGENT
PERFORMANCE
Mobil
adidas
PORSCHE HY
DMG MORI
CHOPARD
CHOPARD
WEC - Le Mans
84
Annual Report - Porsche AG 2015
MICHELIN
uvex
Pat
The first safety car phase brings the field closer together and events come thick and
fast. Porsche and Audi are leading in turn. At 17:20 the 919 Hybrid (17) takes the
lead again. Le Mans rookie, Hülkenberg (19), hands over to Le Mans rookie Nick Tandy
after 36 laps and is thrilled: "The start, speed limit zone, safety car - it's all there
already in my race debut. I'm happy with that."
2015
SC
24h
A
CHAMPION
FIA WEC MANUFACTURERS
MARKEN-WELTMEISTER
2015
PO
WEC - Le Mans
80
8. 21/11/2015 - 6 h of Bahrain
7. 01/11/2015 - 6 h of Shanghai
6. 11/10/2015 - 6 h of Fuji
5. 19/09/2015 - 6 h of Austin
4. 30/08/2015 6 h of Nürburgring
3. 13/06/2015 - 24 h of Le Mans
2. 02/05/2015 -6 h of Spa-Francorchamps
DMG MORI
LE MANS
M
24h
Alexander Hitzinger,
Technical Director LMP1.
From left to right:
Andreas Seidl,
Porsche Team Principal,
Fritz Enzinger,
Head of LMP1,
CHOED
Bed
A textbook start for Porsche: as the 55 participants get started, the three 919 Hybrids are in first, second and third
place. Already on the first lap, Timo Bernhard (start number 17) overtakes Neel Jani (18) and moves into the lead.
Nico Hülkenberg (19) gets passed by the three Audis and falls back into sixth place at the beginning of the third lap.
Timo Bernhard is already in full competition mode: "What a start. It's getting straight to the point."
Start
15:00
17
Sport C
82
Annual Report Porsche AG - 2015
CH
DMG MORI
vodafone
LE MANS
WOD
2011
1.58
1.31
370
10.3
6.5
7.9
182
D
911 Carrera 4S Cabriolet
309
420
12.6
6.8
9.0
208
F
911 Carrera 4S Cabriolet PDK
272
309
911 Carrera 4 Cabriolet PDK
206
F
911 Carrera 4S PDK
309
420
10.3
6.6
7.9
180
E
911 Carrera 4 Cabriolet
272
370
12.4
6.9
8.9
F
204
420
6.7
911 Targa 4S
309
420
12.6
6.8
9.0
208
F
309
420
10.4
6.7
8.0
184
D
D
10.4
182
6.5
8.0
184
E
911 Targa 4
272
370
12.4
6.9
8.9
206
F
911 Targa 4 PDK
272
370
10.3
7.9
911 Turbo
8.9
12.4
7.7
174
190
911 Carrera Cabriolet
272
370
11.9
6.5
8.5
195
F
911 Carrera Cabriolet PDK
272
370
9.9
6.4
6.2
10.1
309
370
9.9
6.0
7.4
169
D
911 Carrera S
309
420
12.2
6.6
8.7
199
F
911 Carrera S PDK
420
6.8
7.5
D
12.2
6.7
8.7
201
F
911 Carrera 4 PDK
272
370
10.1
6.3
7.7
177
E
309
420
370
172
272
D
911 Carrera S Cabriolet
309
420
12.3
6.7
8.8
202
F
911 Carrera S Cabriolet PDK
309
420
10.2
6.5
7.8
178
911 Carrera 4
F
397
11.8
300
220
Class
(Germany)
Efficiency
CO₂
Fuel
CO₂
Consumption Consumption Consumption Emissions
Urban
Extra-urban Combined Combined
(l/100 km) (l/100 km) (l/100 km) (g/km)
Fuel
Fuel
Output
(hp)
Output
(kW)
911 Carrera 4S
911 GT3 RS
Cayman GT4
Boxster Spyder
9.9
718 Boxster S PDK
6.0
168
F
184
8.1
6.5
10.7
350
257
D
158
6.9
5.7
9.0
300
220
E
7.4
257
718 Boxster PDK
718 Boxster S
Model
Research and Development
94
Porsche unveiled its new top-of-the-range 911
models - the 911 Turbo and 911 Turbo S - to
a global audience at the North American Inter-
national Auto Show in Detroit in January 2016.
In comparison with their predecessors, the high-
performance sports cars boast an additional
20 hp (15 kW) of power, a sharper design and
improved features. The bi-turbo 3.8-litre six-
cylinder engine in the 911 Turbo now produces
540 hp (397 kW) of power. The 911 Turbo S
develops 580 hp (427 kW). Porsche remains the
only manufacturer to use turbochargers with
variable turbine geometry in petrol engines. The
engines now feature a dynamic boost function
to further improve responsiveness. This main-
tains the charge pressure during load changes,
i.e. when the accelerator is released briefly.
As a result, the engine reacts virtually without
delay when the accelerator is pressed again.
The Macan GTS took centre stage at the Tokyo
Motor Show 2015. With this global launch, the
year's entire new range of Macan compact
SUVS now includes the Porsche Communication
Management (PCM) that made its debut in
the 911 Carrera. Its key features are real-time
traffic information, a simplified interface and
an integrated Wi-Fi hotspot. The Macan GTS.
generates 360 hp (265 kW) of power and 500 Nm
of torque, placing it between the Macan S and
the Macan Turbo. The SUV accelerates from
0 to 100 km/h in 5.2 seconds and features PDK
transmission and Porsche Traction Management
(PTM) that splits the traction variably between
the front and rear axles. Classic GTS design fea-
tures round off the model's sporty appearance.
The new 911 Carrera 4 and 911 Targa 4 models
feature new electro-hydraulically controlled
all-wheel drive and accelerate faster than their
rear-wheel drive counterparts. Fitted with the
optional PDK transmission and Sport Chrono
Package, the 911 Carrera 4 speeds from 0 to
100 km/h in 4.1 seconds, with the S model
coming in at 3.8 seconds. The 911 Carrera S
Cabriolet and 911 Targa 4S, each with PDK
transmission, achieve the new generation's best
fuel economy in comparison with their prede-
cessors, with average fuel consumption down
1.2 litres to 8.0 l/100 km.
is how long it takes the
911 Turbo S Coupé
to accelerate from
zero to 100 km/h.
2.9s
The retuned Porsche Active Suspension Manage-
ment (PASM) chassis sits 10 mm lower and for
the first time is a standard feature for all Carrera
models. It further improves stability during fast
cornering. At the same time, the new shock
absorber generation enhances comfort. The new
Porsche Communication Management (PCM)
system, including an online navigation module
and voice control, can be operated just like a
smartphone with multi-touch gesture control on
the seven-inch screen. User input via handwriting
is also possible. Mobile phones and smartphones
can be connected via Wi-Fi. Another new feature
is the ability to connect an iPhone to the PCM via
Apple CarPlay, and real-time traffic information
is available for significantly improved navigation.
The International Motor Show Germany (IAA) in
Frankfurt in September 2015 set the stage for
the high point of the financial year. The next
generation of the global top-selling 911 Carrera
sports car was unveiled with innovative twin-
turbo Boxer engines, an enhanced chassis and
the new Porsche Communication Management
system. The completely new engine generation -
producing 370 hp (272 kW) in the 911 Carrera
and 420 hp (309 kW) in the 911 Carrera S - each
offer an extra 20 hp (15 kW). Both engines have
a displacement of three litres. The torque in both
models has increased by a significant 60 Nm in
comparison with their predecessors; the maxi-
mum torque of 450 Nm and 500 Nm respectively
is delivered constantly from a low 1,700 rpm to
5,000 rpm in both cases, making for a superlative
driving experience. At the same time, the maxi-
mum 7,500 rpm clearly exceeds the upper limits
of conventional turbocharged engines. Driving
performance: the Carrera Coupé with PDK trans-
mission and Sport Chrono Package sprints from
0 to 100 km/h in 4.2 seconds, with the Carrera S
taking 3.9 seconds. The top speeds are 295 km/h
(911 Carrera) and 308 km/h (911 Carrera S). In
addition, depending on the model variant, the next
generation engines are just under 12 percent
more efficient. For example, the fuel consumption
of the 911 Carrera with PDK transmission is
7.4 l/100 km (911 Carrera S: 7.7 l/100 km).
The new Boxster Spyder made its debut at
the New York International Auto Show in April
2015. With its rigid sports chassis, a 20 mm
lower ride height, brakes taken from the
911 Carrera and a 375-hp (276-kW) 3.8-litre
six-cylinder engine, the roadster was enthusi-
astically received by visitors. The lightest and
at the same time most powerful Boxster accel-
erates from 0 to 100 km/h in just 4.5 seconds
and reaches a top speed of 290 km/h. Its fuel
consumption is 9.9 l/100 km (NEDC).
The second new model unveiled in Geneva
was the 911 GT3 RS. This high-performance
sports car is the epitome of intelligent light-
weight construction. The roof is constructed
of magnesium and the bonnet and boot lid of
carbon fibre. The 911 GT3 RS is powered by a
500-hp (368-kW) four-litre six-cylinder engine
producing 460 Nm of torque, combined with
a specially developed Porsche Double Clutch
(PDK) transmission. The 911 family's largest-
displacement and highest-powered naturally
aspirated engine with direct fuel injection
catapults the car from 0 to 100 km/h in
3.3 seconds. Its combined fuel consumption
is 12.7 l/100 km (NEDC).
2013 2014 2015
2.15
1.95
2012
95
718 Boxster
Annual Report Porsche AG 2015
in 2.9 seconds and reaches a top speed of
330 km/h. The 911 Turbo hits the 100-km/h mark
in 3.0 seconds and its top speed is 320 km/h.
The fuel consumption (NEDC) is 9.1 l/100 km for
the coupés and 9.3 l/100 km for the convertibles,
meaning that all variants consume 0.6 litres less
fuel per 100 km than their predecessors.
Emission and Consumption Data of the Newly Introduced Vehicles
In the financial year 2015, research and non-
capitalised development costs (excluding amor-
tisation and depreciation) of the Porsche AG
Group amounted to 1.11 billion euro (previous
year: 886 million euro). Development costs
totalling 1.04 billion euro were capitalised
(previous year: 1.07 billion euro). Total research
and development costs (excluding amortisation
and depreciation) amounted to 2.15 billion euro
(previous year: 1.95 billion euro). The capital-
isation ratio in financial year 2015 amounted to
55 percent.
Research and Development Costs
The Drive Technologies of Tomorrow
The global launch of Porsche's first ever all-
electric four-seater - the Mission E concept car -
turned heads at the International Motor Show
Germany (IAA) in Frankfurt in September 2015.
With its highly emotional design, the technology
showcase combines superlative performance
with forward-looking everyday practicality under
the keyword E-Performance. With system output
of more than 600 hp (440 kW), the aim is for
the sports car to achieve 0 to 100 km/h in under
3.5 seconds and feature a range of more than
500 km. The 800-volt charging unit is twice as
powerful as today's turbo charging systems,
and the lithium-ion batteries integrated in the
car's underbody can be charged to 80-percent
capacity in just 15 minutes. The vehicle can
optionally be charged via an inductive coupling
built into a garage floor without the need for
cables.
bi-xenon headlights with integrated LED day-
time running lights. The redesigned rear of the
718 Boxster appears significantly wider, due
in particular to the strip with integrated Porsche
lettering between the tail lights.
100 kilometres.
718 Boxster S (PDK)
consumes in
is what the new
The design of the new model series has also been
extensively updated. The rear of the new roadster
is significantly more profiled, and its front end
has a wider and more masculine appearance. The
significantly larger air intakes at the front are a
distinct reminder of the new turbocharged engines.
The front end is rounded off by redesigned
six-speed manual transmission as standard, with
PDK transmission as an optional extra. The latest
generation Porsche Communication Management
(PCM) system with state-of-the-art touchscreen
display comes as standard, and an optional navi-
gation module is available.
consumes 7.3 l/100 km. The 718 models feature
engine with PDK transmission in the 718 Boxster S 7.3 litres
or 440 kW is the
system performance
of the Mission E
concept study.
600 hp
The new 718 Boxster was the star of the Geneva
Motor Show at the beginning of March 2016.
Twenty years after the premiere of the first
Boxster, Porsche is relaunching its mid-engined
roadster. The 2016 models are the 718 Boxster
and 718 Boxster S - two-seat convertibles that
are more powerful and at the same time more
fuel efficient. At their core is a newly developed,
turbocharged four-cylinder Boxer engine: the
718 Boxster features a 2.0-litre power plant
developing 300 hp (220 kW) of power, while the
718 Boxster S boasts a 2.5-litre unit producing
350 hp (257 kW). The S model uses a turbocharger
with variable turbine geometry (VTG), with Porsche
now offering this technology in the 718 Boxster S
as well as the 911 Turbo. The new models feature
a significant 35-hp (26-kW) increase in power and
the new turbocharged engines consume up to
13 percent less fuel, setting them apart from
previous Boxster models. The 718 Boxster with
PDK transmission and Sport Chrono Package
sprints from 0 to 100 km/h in 4.7 seconds, with
the Boxster S clocking in at 4.2 seconds. The
top speeds are 275 km/h for the 718 Boxster and
285 km/h for the 718 Boxster S. The four-cylinder
Boxer engine with PDK transmission in the 718
Boxster boasts fuel consumption of 6.9 l/100 km
(NEDC), while the 2.5-litre turbocharged Boxer
The 911 Turbo S Coupé accelerates to 100 km/h
540
350
6.0
F
911 Turbo S Cabriolet
427
580
12.1
7.6
9.3
216
F
911 Targa 4S PDK
Macan GTS
"Versatility depending on the tyre set used
265
360
11.8-11.4"
216
7.8-7.4"
9.3
12.1
7.5
9.1
212
F
911 Turbo S
427
580
11.8
7.5
9.1
212
F
911 Turbo Cabriolet
397
540
7.6
9.5
9.2-8.8"
E-D
7.8
14.8
385
283
G
230
9.9
7.5
14.2
375
276
88 རྨི་རྨི &
F
167
7.3
10.3
215-207"
238
368
96
Research and Development
97
8.3
6.3
11.7
370
272
911 Carrera
G
296
12.7
8.9
19.2
500
G
E
272
Annual Report Porsche AG 2015
in the car with a charging time of less
than 15 minutes. An additional contri-
bution towards improved convenience
is induction charging. For example,
in your home garage or at your place
of work, simply roll the car over a
charging station on the ground and
the battery becomes recharged with-
out the need of a cable connection
and fully automatically. This makes
active refuelling a thing of the past.
Just as important a milestone is
the highly emotional design of the
Mission E, a typical Porsche design
that passes on the design DNA of
the 911 to the world of purely electric
sports cars, with a clearly styled
and classy interior including the four
seats and the innovative operating
concept with visual and gesture
control, in some cases even using
holograms.
3
The Vision of
the Sports Car
of Tomorrow
"The Mission E embodies the
Porsche vision of the sports car
of tomorrow in every detail," says
Weckbach. "A car that while driving
follows the driver's gestures, eyes
and intuition so that he can concen-
trate on what is essential - the typical
Porsche driving experience." The
combi-instrument presented here
shows five circular instruments -
undeniably Porsche, but virtually pre-
sented in OLED technology, that is,
using organic light-emitting diodes.
The
Mission E
Pushes Out
Technological
Limits.
Both with
Its Drive
and
Its Handling
Concept.
The Future
Is Brought
into
the Present.
That is why the Mission E also responds
to the most important questions in
e-mobility with perfection, namely the
matter of range - which is more than
500 kilometres. And the question of
short charging time - which, thanks to
a system voltage of 800 volts, provides
enough energy for 400 kilometres
These are assigned to the driver-
relevant functional topics Connected
Car, Performance, Drive, Energy and
Sport Chrono.
The overall concept also bears
witness to the typical everyday usability
of Porsche - which, in a production
sports car, is a claim to the highest pos-
sible quality. "This is just as important
in a Porsche as the driving perfor-
mance," Weckbach explains. Because
that is precisely what sets the icon
apart and has been characteristic of
the brand for more than 50 years: the
Porsche 911 has become the embodi-
ment of the sports car, because it
is not only fast, but also reliable. It is
the series winner in the quality tests
carried out by J.D. Power. And one thing
remains unchanged: you can drive to
the race track with your 911 in the
mornings and use it to visit a cultural
event in the evening. A Porsche is versa-
tile and cuts a good figure no matter
where you drive.
2
Mission E
Entering
the
Age
of
a
New
Mobility.
If you build the best sports car in the world,
you always have to be one vehicle length ahead of
the competition. That's Porsche. No brand of
car has won more races. No other manufacturer is
so successful in the domain of dynamic mobility.
And no other manufacturer offers the sportiest and
technically most impressive vehicle in each segment.
And now comes the Mission E. Will it also be the
most dynamic vehicle on offer in its segment? Abso-
lutely. Racing wins? Not planned as yet, but cer-
tainly not far away in the suitable racing formula -
because its drive concept is taken to some extent
from the 919 Hybrid.
The Porsche Mission E is already a success story.
But let's take a look back at the beginning of this
story, when it electrified the world for the very first
time at the International Automobile Exhibition
(IAA) in Frankfurt am Main in September 2015. This
concept vehicle impressed immediately with its
superb design, wonderful four-seat interior and
highly innovative drive and energy concept. Both
the industry and the customers agreed: this is
exactly what the first purely electric sports car
from Porsche can indeed must look like. What
followed was inevitable. Porsche's Supervisory
Board became infected by the excitement and gave
the go-ahead to develop the production vehicle.
The Mission E is an impressive promise given by
Porsche. The battery-operated technological show-
piece unites outstanding driving performance
with trendsetting everyday usability. It thus under-
scores the brand's peak position. What does the
Porsche Manager Stefan Weckbach, who should
know better than anyone else, think of the new
model? "The Mission E is the first purely electrically
driven Porsche of the 21st century. The eyes of
the world are on it, because our sports cars have
always pushed technological boundaries further."
Weckbach has been familiar with the Mission E
from the first design draft onwards and in all its
technical details. He has been Product Manager
for purely battery-operated electrical vehicles at
Porsche since 2015, and is thus responsible for
the development of the production vehicle.
109
Annual Report Porsche AG 2015
Mission E
1
The Sportiest
Electric Drive
Like the WEC world champion
car and the 2015 Le Mans winner - the
Porsche 919 Hybrid - the Mission E
has permanently excited synchronous
motors (PSM) with a high degree of
efficiency, high power density and a
constant power development. "Up to
24 hours of top performance, several
double victories as well as brand and
driver titles in the World Endurance
Championship are the best recommen-
dation for a Porsche," says Weckbach.
"Another bonus is that, unlike today's
usual electrical drives, the two engines
develop their full performance even
when you accelerate several times at
short intervals. An electric Porsche that
deserves the name must drive sportily.
This means, among other things, being
consistently fast over extended periods
and no loss of performance while
repeatedly accelerating and braking."
System performance of more than
600 hp. All-wheel drive with Porsche
Torque Vectoring. All-wheel steering.
A lightweight body, a low centre of grav-
ity with a lithium-ion battery on the
underside, optimum weight distribution
and good balance. Perfect aerodynam-
ics. The result is outstanding driving
performance and highest dynamics.
The figures for the Mission E speak the
clear language of the sports car: accel-
eration from zero to 100 km/h in less
than 3.5 seconds, and to 200 km/h in
less than twelve seconds, along with
The Mission E is the first purely electrical Porsche of the 21st
century. With it, the brand is launching an era of new mobility
and at the same time underscoring its expectation of also being
the leading sports car provider in this new sector. This car
pushes out technological boundaries. And that is why the world
is looking at the Mission E. Here is an overview of its most
important features.
a top speed of more than 250 km/h,
which is less than eight minutes lap
time for the northern loop of the Nür-
burgring racing track.
Outstanding
Everyday
Usability
The Promise
Just as innovative is the control system:
an eye-tracking system recognises
via a camera what instrument the driver
is looking at. The driver presses a
button on the steering wheel to activate
the corresponding menu in which he
then navigates - also in an interplay
between eye-tracking and manual vali-
dation. And as if that was not enough:
in a so-called parallax effect, the
display follows the sitting position and
posture of the driver. If he sits lower,
higher or leans to the side, the 3D dis-
play on the circular instruments reacts
and moves with him.
4
Professional Service
Porsche After Sales serviced over 1.3 million vehicles worldwide in financial
year 2015 following the successful launch of the Macan. Revenue from
spare parts also rose significantly compared to the previous year. Internal
structures were optimised in order to ensure the highest professional
standards. The service was also extremely well positioned in China despite
the economically slower year. Market activation measures were initiated
as early as the beginning of the year to adequately address the volatile
situation.
Ground-breaking vehicle technology constantly presents new challenges
for After Sales. Porsche supports the retail organisation with innovative
concepts to manage the increasing complexity. The idea is to develop
appropriate tools for garage shop media to ensure that customer vehicles
are repaired efficiently. Experience has shown that a high level of dealer
satisfaction also leads to a high level of customer satisfaction. 3D repair
manuals for technicians at Porsche Centres were therefore issued for the
first time with the new Cayman GT4 in financial
year 2015. These are to gradually replace
classic written manuals and have already been
recognised by the KVD (Kundendienst-Verband
Deutschland e.V.) with the "2015 Service Manage-
ment Award". Garage shop employees can use
the comprehensive interaction options in the
3D PDFs to rotate, hide and zoom in on content
in the "repair manual" themselves. This makes
complex relationships and assembly positions
for spare parts immediately identifiable to
technicians and presents these in a clear, three-
dimensional format. However, this is only the
first step towards augmented reality - the
medium-term aim is to digitally integrate both
workshop and customer media, such as the
user manual, into the vehicle.
Innovative service concepts ensure long-term
customer satisfaction and thus loyalty. Many
Porsche Centres all around the world success-
fully launched new services to provide an excit-
ing premium experience. The underlying aim is
to offer each customer individual and flexible
service. The new offerings range from a valet
service with a personalised greeting and parking
assistance to a fast lane package with specific
services as well as personalised gifts for a
unique customer experience. The idea behind
the gifts is to enable service consultants to
surprise customers with a little something that
relates to the topics discussed.
Such experiences can only be provided by highly
qualified employees. This is why Porsche also
expanded After Sales Retail Development to
provide retail with the best possible support for
process changes. For instance, dealers around
the world can now select the coaching modules
best suited to them based on their needs. These
modules already cover a wide range of after
sales topics such as core service processes
and after sales business management and help
the Porsche Centres to optimise their business
environment. Further coaching modules are
already being developed. Overall, Porsche's
services are better positioned than ever before
to offer customers a tailored and unique service
experience.
Many Repeat Loyal Customers
Many Porsche owners are repeat loyal customers
of the brand rather than just buying one model,
they are inspired by the brand time and again
and own more than one Porsche. The high level
of customer satisfaction is attributable to high
product quality and exclusive customer service
throughout the entire customer life cycle. This
motivates us to continue to meet and exceed these
high expectations in the future. One of Porsche's
goals is therefore to further expand customer
service around the world. Porsche knows its
customers' needs better than virtually any other
automotive manufacturer thanks to the CRM@
Porsche ("C@P") global customer service system.
This enables Porsche to set international cus-
tomer service standards and, at the same time,
specifically address individual customer wishes.
The international measures implemented under
the Customer Experience Management initiative
aim to ensure exclusive, personal customer ser-
vice based on respect. Porsche rolled out a unique
customer service model - the "72-hour satis-
faction process" (72h-Zufriedenheitsprozess) -
around the world that not only asks customers
how satisfied they are, but also finds individual
solutions within 72 hours where possible, and
fosters relationships with dedicated and profes-
sional partners at Porsche Centres around the
world.
The success of these customer service and
customer satisfaction measures is confirmed by
numberous international studies. For the eleventh
time in a row, Porsche placed first overall in the
Automotive Performance, Execution and Layout
Study (APEAL) conducted by the renowned U.S.-
based market research institution J.D. Power and
Associates. In other words, Porsche is still the
most attractive automotive brand for U.S. drivers.
The Cayman, Cayenne and Macan models were
once again voted best-in-class for their respective
segments in the study. The annual survey is
conducted on the basis of information provided
by more than 84,000 new owners of well over
200 different models. Porsche also performed
extremely well in the Sales Satisfaction Index
(SSI) in the U.S. and was named the best premium
brand. The SSI is also conducted every year by
J.D. Power and evaluates how satisfied new car
owners are with the purchase of their vehicle.
8
Best Cars
2015
is a well-earned
description of the
Porsche 911 and the
911 Cabrio, with which
Porsche masterfully
topped the sports car and
convertible categories.
In Germany, Porsche received very high marks
in one of the largest auto-related surveys over
112,000 readers of "auto, motor und sport"
magazine (ams) voted for their favourites for
Best Cars 2015 in ten categories. As in the
previous year, the Porsche 911 and 911 Cabrio
finished first in the sports car and convertible
categories. The Macan was also voted best
car of 2015 in the large SUV category. Readers
of the "sport auto" magazine named various
Porsche models as the most popular cars in
seven out of 15 categories, making Porsche
the most successful manufacturer overall. The
Boxster, Boxster GTS, 911 Turbo S, 911 Turbo S
Cabrio, 911 Targa 4 GTS, 911 GT3 RS and
Cayman GT4 all bested their competitors in
their respective categories. "Car and Driver"
magazine also ranked the Boxster and the
Cayman among its "10 Best Cars".
In the U.S., premier consumer advice magazine
Kelley Blue Book presented the Porsche brand
with four Brand Image Awards. Porsche was
recognised in the "Best Overall Luxury Brand",
"Most Refined Luxury Brand", "Best Performance
Luxury Brand" and "Best Car Styling Luxury
Brand" categories. The Cayenne S E-Hybrid
received the award "Best Resale Value - Plug-In
Vehicle". This combines the brand's classic
strengths from a customer perspective with
forward-looking hybrid technology. The cus-
tomer enthusiasm generated by the unique
experience of buying and owning a Porsche is
an integral component of the Company's
strategy. But the most important thing is that
employees put customer needs at the centre
of everything they do and continue to go the
extra mile for our customers in the future.
116
Sales, Production and Procurement
117
Pointing
911 - Mission E
98
Sales
The entire dashboard is packed full with
new ideas. Inspired by the cockpit
arrangement of the original 11, a broad
holographic display waits to be called
to life by a movement of the hand. It
displays individually selected apps. A
three-dimensional effect is generated in
space arranged according to priority.
Contactless and using intuitive gestures
alone, the driver or passenger controls
practically all of the Mission E functions
via these apps, including media, naviga-
tion, air conditioning, contacts and
the vehicle. Grasping means selecting,
pulling means controlling. What is more,
the concept car can also be configured
externally by tablet using Porsche Car
Connect. With the help of "over the air"
and "remote" services, the driver can
expand the functional scope of his vehi-
cle practically overnight.
Procurement
Annual Report Porsche AG - 2015
Made
in
Zuffenhausen
Like its great role model,
the 911, the new Porsche is being built
where the Porsche heart beats: in
Zuffenhausen. The production car is to
be on the road by the end of the cen-
tury - which is practically the "day
after tomorrow" in the automotive
industry. A large task. When you talk
to Stefan Weckbach, not a trace of
nervousness can be seen, in its place
expectant anticipation. As a doctor
of business economics, the Product
Manager knows how to play with all
the variables necessary to bring the
vehicle to serial production. It has
earned a perfect place in the portfolio.
The first big task that the company
entrusted Weckbach with in 2011 was
to come up with the product stra-
tegy. Prior to that he was assistant
to Chairman of the Board Matthias
Müller. The next step in 2013 saw him
at the development centre in Weis-
sach, where all of the technological
and mobility know-how is brought
together and transformed into fasci-
nating products in the form of the
world's technically most challenging
cars with the highest expectations of
sportiness.
Weckbach took on responsibility for
the Boxster and Cayman series and it
is an open secret that, during this
period, the Boxster was developed as
the experimental prototype of a fully
electric sports car, demonstrating
what matters. This know-how is also
contained in the Mission E. And now
he is in charge of purely battery-oper-
ated electric vehicles. Weckbach, a
mere 39 years old, has everything it
takes to rise to the challenge - as
well as the company's absolute faith
in the fact that he is the right person
for the job. When asked about this, he
simply answers: "It's a great honour
for me to have been entrusted with
this task."
It certainly is. Because the Mission E
is the logical continuation of the
concept that made the 911 the most
successful sports car of all time.
And like the 911, the Mission E will be
driving ahead of the market. Perhaps
by even more than a car's length.
110
911 Mission E
111
Annual Report Porsche AG 2015
112
911 Mission E
Mission &
Mission e
113
Annual Report Porsche AG - 2015
114
911 - Mission E
115
Sales,
Production
and
Stefan Weckbach
Product Director
911 Mission E
101
Annual Report Porsche AG - 2015
102
911 Mission E
S.GO 4042
103
Annual Report Porsche AG - 2015
911
1
Turbo
Engine
The newly developed boxer
power unit in the 911 Carrera and
Carrera S has 3.0 litres of displacement.
Different turbochargers deliver two
performance levels: 370 hp (272 kW)
and 420 hp (309 kW) - each with 20 hp
(15 kW) more than their predecessors.
"Classic downsizing coupled with state
of the art technology," says Achleitner.
"The turbo technology was ripe for
broader implementation in the 911. With
its help we have reached a new peak
level in performance, driving pleasure
and efficiency." Was taking leave from
the naturally aspirated engine in the
911 Carrera not quite a paradigm shift?
"Basically, yes. But when you see the
results, then absolutely not. The new
911 is more powerful and faster than
before, but uses less fuel. A win-win
situation."
Porsche has more than four decades
of experience with turbo engines -
both in racing and in production sports
cars. The new boxer engines of the
Carrera 911 rely on this and at the same
time benefit from what the top model
911 Turbo has always excelled at. This
youngest generation was launched
at the end of last year and the Turbo, as
it is lovingly called, is in a league of its
own of course, a league it defined in
1974 and which it has been defending
successfully and uninterruptedly ever
since.
The 911 has always been the most charismatic of all sports cars
by Porsche. It is simply the diamond of the brand, and as one
would expect of a diamond, the designers and engineers examine
every single facet in great detail for every new generation,
working on them and improving the shine with the highest degree
of attention and technical know-how. It is worth taking a look at
the facets of the new Porsche 911.
2
Efficiency
and
Emissions
Every new 911 generation
impresses with its increased perfor-
mance and efficiency over its predeces-
sor. The new 11, depending on the
specific model, is about 12 percent
more economical and fuel consumption
has been reduced by up to one litre per
100 kilometres. The 911 Carrera with
PDK gears now only needs 7.4 litres of
fuel for 100 kilometres (minus 0.8 1/100
km), and the 911 Carrera S with PDK is
at 7.7 l/100 km (minus 1.0 l/100 km).
Directly linked to this, the emission
values have also dropped considerably.
"Considering the performance level
offered, we once again have absolutely
peak figures," says Achleitner. "High
power and efficiency are not mutually
exclusive at Porsche they complement
one another."
3
Chassis
911 Mission E
The experts have adapted the
chassis to the new powertrain. The
retuned PASM (Porsche Active Suspen-
sion Management) is now serial in the
911. "The colleagues have managed
excellent new tuning," says Achleitner.
The potential on the northern loop
of Nürburgring is 7 minutes and 30 sec-
onds, about 8 seconds less than its
predecessor and this with improved
comfort. "The 911 is synonymous with
the ideal balancing act between normal
100
Let's look at the new Porsche 911 with Mr.
Achleitner. For him, a mechanical and industrial
engineer, the honorary title "Mr. 911" would
by no means be an overstatement. He has
been with Porsche since 1983 and has been
Product Director for this extremely successful
family of sports cars for 15 years. It was
he who, together with his team, also launched
the new generation.
911
Mission E
99
Annual Report Porsche AG - 2015
911
Product Director
August Achleitner
20
The Diamond
Precious
Stone
That
Radiates
Style.
T.
he Porsche 911 is all a sports car
should be. Technologically perfect. Light and
fast. Finely balanced. With excellent ergonom-
ics. Always achieving highest performance -
any time, any place.
The brand offers a number of further bonuses,
and the list is getting longer: Master racing
genes. Finest design. Absolutely timeless.
Long tradition. Uncompromising everyday usa-
bility. Highest quality. Uniquely stable in value.
The 911 has been the world's highest-selling
sports car for more than 50 years. Why is that
so? Because Porsche never ceases working
on the sports car of tomorrow every single
day. The 911 is our core, our drive, our duty
and our honour to achieve greatness again and
again. The 911 regularly leaves the competi-
tion far behind. On the racing track and on the
market.
Like the newest generation, which was pre-
sented to the public in September 2015. The
best Porsche 911 of all time. With innovative
and efficient turbo boxer engines, an optimised
chassis and completely new Porsche Commu-
nication Management - and these are only
some of its features. Once again, the compa-
ny's entire automotive know-how has been
put into the new 911.
The best ever 911 - a promise that August
Achleitner would sign in blood. "This car raises
the bar yet again. For the type series, for
our vehicles in general, and for Porsche," he
says. "And also for the entire world of sports
cars, because nobody looks past a 911."
S GO 4042
road conditions and performance on
the race track," he adds. The active
rear-wheel drive is part of the chassis.
It is available in the 911 Carrera S -
technology from the 911 Turbo and
the 911 GT3, which once again lends
the 11 increased agility and stability
at high speeds.
4
Driving
Performance
Emotion
"The constantly available
power, its impressive acceleration and
driving precision, and all of that at
a renewed higher level than before -
these features alone set free the very
special emotions that are characteris-
tically evoked by the Porsche 911
in the new generation as well," says
Achleitner. The sound of the boxer
engine rounds it all off. To achieve this
in the newest generation, a great deal
of work was put into two so-called
Sound Symposers so that the driver
can really experience the turbo boxer
sound. "The result is really impressive,"
says the Product Manager with pas-
sion. There is also an optional sport
exhaust system for an even more emo-
tional sound.
104
911 Mission E
105
Annual Report Porsche AG 2015
911
Is
Synonymous
with the
Porsche
Brand.
This is the best way to describe the very special precious stone
from Porsche. A diamond with eight facets? "Let's just say, those
are the main facets that shine thanks to the special polish given
by Porsche," Achleitner says, laughing. "As with a real diamond,
there are countless other facets, and all of these together result
in the special radiance emanated by the 911."
A radiance that has always spurred the company forwards. The
Porsche 911 is synonymous with the brand - and it is a highly
successful product. As such, it not only makes a considerable
contribution towards the strong company profit situation, but also
guides the company's path into the future with its great number
of new technologies. The other Porsche models benefit from
these, like the new generations of 718 Boxter and 718 Cayman,
which are also on the road with turbo-charge engines. Since
the end of last year, Achleitner has been responsible for this
model range as well, thus putting him in charge of all two-door
sports cars from Porsche.
He has the know-how about these vehicles from Porsche, and his
colleagues the know-how about the four-door models and the
production version of the Mission E electric sports cars: the com-
plete know-how for the best sports car in every segment is in
place. Whether combustion engine, plug-in hybrid engine or purely
electrical. "Some people are in awe of our consistent degree of
perfection," says August Achleitner with healthy self-confidence.
"Not us. Porsche is Porsche after all."
106
911 Mission E
SOGO 4042
107
the
108
8
newly designed trunk lid with a verti-
cally slatted grille and new rear lights -
among other things with the character-
istic four-point brake lights.
"The Porsche 911 is often
referred to as a design icon, and even
people with a neutral opinion of the
brand recognise: it's the real thing,"
says Achleitner, stating what matters.
"Its design is highly characteristic and
so harmonious that many people love
it just for that." The look of the 911
has been continuously honed over the
years and the new 911 benefits from
a great love of optical details. This
ranges from hew headlamps with four-
point daytime running lights to flush-
mount door handles right up to a
7
Design
Also impressive all round
in the new models. The 911 Carrera
Coupé with PDK (Porsche double-
clutch transmission) and the sports
chrono package sprints from zero
to 100 km/h in 4.2 seconds, making
it two tenths of a second faster than
its predecessor. The 911 Carrera S
with PDK and sports chrono package
masters this amazing feat in only
3.9 seconds (also minus 0.2 seconds).
It is therefore the first 911 of the
Carrera family to undercut the magical
4 second mark. And the top speeds
for both models have also once again
increased: the peak speed reached
by the 911 Carrera is now 295 km/h
(up 6 km/h), while the 911 Carrera S
even reaches 308 km/h (up 4 km/h).
Together with the optional sports
chrono package, the 911 Carrera now
comes for the first time with a mode
switch on the steering wheel, which is
derived from the Hybrid mode switch
in the 918 Spyder: four driving states
("normal", "sport", "sport plus" and
"individual") can be activated at the
touch of a finger, and the additional
High Power
and
Efficiency
Are Not
Mutually
Exclusive.
At Porsche
They
Annual Report Porsche AG 2015
Complement
Another.
"sport response button" conditions the
powertrain for 20 seconds to achieve
best possible acceleration, for example
when overtaking.
5
The
Driving
Experience
All technologies in the new
Porsche 911 bring us directly to the fea-
ture that the 911 is most loved for:
the unique driving experience it offers
for those with a sporty driving disposi-
tion. The response behaviour of the new
boxer engines remains at the level of
the previous naturally aspirated engine.
They can be controlled perfectly and
with precision via the gas pedal and
they respond immediately. The power
units deliver a torque of 450 newton-
metres in the 911 Carrera and even
500 newton-metres in the 911 Carrera
S already from 1,700/min upwards.
This is 60 newton-metres more than
their predecessors for both models. Up
to 5,000/min and thus across a broad
range, the torque remains constant
before once again dropping gently. The
maximum rotational speed is 7,500/min
considerably more than what one is
used to from turbo engines. "What this
means in practice is the 911 is even fas-
ter than before - for example, because
it can accelerate better out of bends
in the road thanks to the higher torque
in the lower rotational speed range,"
Achleitner explains. "And you can drive
it with fewer gear changes. That means
important time gains, especially on
round trips."
6
Everyday
Usability
The Porsche 911 not only offers
a top-class sporting driving experience,
but also unrestricted everyday usability.
"With it you can commute between race
track and office without any problem,"
says Achleitner, referring to its spec-
trum. "The purring of the engine when
turned off already incites joyful anticipa-
tion of the next drive - no matter what
your destination." The 911 is ready
to go at all times. This is also down to
its legendary quality: for years it has
occupied the top position in the impor-
tant J.D. Power ranking.
With tongue in cheek, the brand brought
out an advertising slogan in the 90s
underscoring the suitability of the 11
even for families: "You can stay longer
for breakfast. You will be back for
dinner sooner. Is there a better family
car?" Since then, Porsche has actually
brought alternatives that are suitable
for families into its portfolio. In every
one of these, however, you will find a
piece of 911 visible, audible, tangible.
And the new standard Porsche Com-
munication Management and multi-
touch screen makes everyday driving
more pleasant. Its extensive range of
functions includes online navigation,
modern connectivity and voice control.
One
to
Way
2,199
Profit after tax
Total comprehensive income
Capital contribution
Profit transfer
As of December 31, 2014
As of January 1, 2015
Effects of currency translation
Revaluations from pension plans
Financial instruments pursuant to IAS 39
Taxes recognized in other comprehensive income
Other comprehensive income
Profit after tax
Total comprehensive income
Capital contribution
Profit transfer and dividends
As of December 31, 2015
132
Financial Data
Subscribed
capital
Capital
Retained
reserves
earnings
Other comprehensive income
Accumulated
Taxes recognized in other comprehensive income
Revaluations from pension plans
39
- 47
886
37
2,485
1,560
2,485
1,560
267
526
2,752
2,086
-5,317
- 5,353
- 2,566
- 3,267
131
Annual Report Porsche AG 2015
Consolidated Statement of Changes in Equity
of Porsche AG for the period January 1 to December 31, 2015
million euro
As of January 1, 2014
Effects of currency translation
Financial instruments pursuant to IAS 39
- 978
Other comprehensive income
Revaluations
from pension
plans
268
466
-458
- 254
-632
103
- 1,241
466
-1,241
2,199
440
324
Panamera GTS
D
213
9.2
7.4
12.5
420
309
Panamera 4S Executive
G
230
9.9
4
profit
194
- 1,158
Securities
marked to
market
Cash flow
hedges
Currency
translation
Equity-
accounted
investments
Equity before
non-controlling
interests
Non-controlling Group equity
interests
45
6,321
2,406
-265
254
296
-18
103
9,039
9,039
-652
103
-652
103
-652
- 258
- 900
-1,158
7.5
- 838
-506
Cash and cash equivalents at the end of the period
Trade payables
2,214
1,856
Other financial liabilities
3,127
2,058
Other liabilities
850
810
Tax payables
Current liabilities
489
486
10,971
8,511
29,143
26,060
Cash and cash equivalents at the end of the period
Securities, loans and time deposits
Gross liquidity
Total third-party borrowings
Net liquidity
1,884
FY 2015
2,768
Net change in cash and cash equivalents
3,469
Other financial liabilities
776
381
Other liabilities
Non-current liabilities
265
244
7,472
7,950
Cash flow from investing activities
Capital contributions
Profit transfer and dividends
Proceeds from issuance of bonds
Repayment of bonds
Change in other financial liabilities
Cash flow from financing activities
Provisions for taxes
Other provisions
63
80
Effect of exchange rate changes on cash and cash equivalents
1,460
1,337
Financial liabilities
-638
FY 2014
1,570
3,179
- 1,388
- 1,047
- 1,039
- 1,067
-26
-50
77
170
- 4
14
261
-268
- 2,119
- 2,248
707
829
-1,232
- 1,414
2,536
2,473
-2,343
-2,228
3,843
1,560
-95
-775
3,382
3,060
- 1,148
-784
2,124
1,878
5
-281
3
1
312
254
-220
-460
-542
-586
602
608
208
164
63
195
-827
- 119
14.2
375
276
10,700
10,698
0
210
- 643
0
- 577
3,806
7,857
45
- 1,905
-1,903
- 1,903
707
707
707
2,299
2,298
125
- 307
146
2,334
2,335
133
2,334
Annual Report Porsche AG 2015
of the Dr. Ing. h.c. F. Porsche AG
Prof. Dr. rer. pol. Horst Neumann Member of the Board of Management of Volkswagen AG
(Member of the Supervisory Board since 29 February 2016)
Dr. Karlheinz Blessing Member of the Board of Management of Volkswagen AG
Human Resources and Organisation
(Member of the Supervisory Board since 1 December 2015)
Frank Witter Member of the Board of Management of Volkswagen AG
Finance and Controlling
(until 6 October 2015)
Sales and Marketing
Christian Klingler Member of the Board of Management of Volkswagen AG
Member of the Board of Management of Volkswagen AG
Procurement
Dr. rer. pol. h.c. Francisco Javier Garcia Sanz Betriebswirt
Prof. Dr. Dr. h.c. mult. Martin Winterkorn Chairman of the Board of Management of Volkswagen AG
(until 6 November 2015)
Matthias Müller Chairman of the Board of Management of Volkswagen AG
(Member of the Supervisory Board since 12 December 2015)
Chairman of the Board of Management of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Hans Dieter Pötsch Diplom-Wirtschaftsingenieur
Hans-Peter Porsche Ingenieur
Dr. Ferdinand Oliver Porsche Investment management
Dr. Hans Michel Piëch Lawyer in private practice
(until 25 April 2015)
Hon.-Prof. Dr. techn. h.c. Ferdinand K. Piëch Diplom-Ingenieur, ETH
Chairman of the general and group works council of Dr. Ing. h.c. F. Porsche AG
Chairman of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Deputy chairman of the works council of Porsche Automobil Holding SE
Uwe Hück * Deputy Chairman
Chairman of the Supervisory Board
Dr. Wolfgang Porsche Diplomkaufmann
The Supervisory Board
Human Resources and Organisation
-36
65
45
9,599
3
9,596
85
- 336
0
- 723
3,375
7,150
45
- 1,230
-1,230
1,230
830
829
829
960
958
103
632
- 254
- 458
7,150
-36
3,375
0
65
-437
-437
211
211
2,334
125
- 307
0
146
130
0
-65
-437
0
211
125
125
125
9,599
9,596
85
- 336
-723
(until 30 November 2015)
Dr. Hans Peter Schützinger Member of the Board of Management of Porsche Holding GmbH
(Member of the Supervisory Board since 29 February 2016)
Wolfgang von Dühren * Head of Sales Planning
Panamera 4
F
184
8.1
D
199
8.5
6.9
11.4
310
228
Panamera
D
158
6.9
B
169
6.4
5.6
7.7
300
221
Panamera Diesel 30
228
E
310
7.2
Boxster Spyder
E
211
9.1
7.3
12.4
420
309
Panamera 4S
E
207
8.9
7.1
12.1
420
309
Panamera S
E
167
7.3
E
206
8.8
11.6
168
7.4
「g||」2
Urban
(l/100 km)
Fuel
Output
(hp)
Output
(kW)
Model
Emission and Consumption Data
Annual Report - Porsche AG - 2015
135
The Supervisory Board.
134
* Employee representative
Deputy chairman of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Member of the works council of Porsche Automobil Holding SE
Member of the general works council of Dr. Ing. h.c. F. Porsche AG
Head of shop stewards' committee
Werner Weresch Member of the group works council
Axel Weyland * Head of Drivetrain Division at Porsche Engineering Services GmbH
Jordana Vogiatzi * Press officer IG Metall Administrative Office Stuttgart
2,199
Hansjörg Schmierer * Manager responsible for members and finances of the IG Metall Trade Union, Stuttgart
Peter Schulz✶ Diplom-Ingenieur (FH)
Member of the works council of Porsche Automobil Holding SE
Tanja Jacquemin * Section manager, company and industry policy, Executive Board of the IG Metall Trade Union
Manfred Pache* Member of the group works council and deputy chairman of the general works council
Chairman of the Weissach works council
Member of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Member of the works council of Porsche Automobil Holding SE
Member of the general works council
Antonio Girone * Deputy chairman of the group works council
Fuel
Fuel
CO₂
Consumption Consumption Consumption Emissions
Extra-urban Combined Combined
(l/100 km)
(g/km)
(l/100 km)
CO₂
9.5
350
257
718 Boxster S PDK
10.7
350
257
718 Boxster S
9.0
300
220
2,201
9.9
220
718 Boxster PDK
718 Boxster
Efficiency
Class
(Germany)
CO₂
Fuel
Fuel
Fuel
CO₂
Consumption Consumption Consumption Emissions
Urban
Extra-urban Combined Combined
(l/100 km) (l/100 km) (l/100 km) (g/km)
Output
(hp)
(kW)
Output
Model
Efficiency
Class
(Germany)
300
Vice president of Human Resources, Management and Production
2,201
15.2
6.6
10.3
420
309
911 Carrera 4S PDK
Fuel
Power
Output
(hp) 2
(kW) 2)
Output
Model
F
204
8.9
6.8
12.4
420
309
911 Carrera 4S
Plug-in Hybrid
E
177
7.7
7.9
6.3
180
911 Carrera 4 Cabriolet
12.6
420
309
911 Carrera 4S Cabriolet
D
182
Pension plan remeasurements recognized in other comprehensive income
6.5
10.3
370
272
911 Carrera 4 Cabriolet PDK
(Germany)
Efficiency
Class
CO₂
CO₂
Consumption Consumption Emissions
(kWh/
Combined Combined
100 km)
(l/100 km) (g/km)
F
206
8.9
6.9
12.4
370
272
E
10.1
370
272
6.7
12.3
420
309
911 Carrera S Cabriolet
F
E-D
234-2281
267-261"
10.0-9.8"
11.5-11.2"
C
209
8.0
C
E-D
B
179-173"
229-223"
215-209"
D
215
9.2
6.8-6.6"
9.8-9.5"
8.2-8.0"
6.2-6.0"
8.0-7.8"
7.2-7.0"
7.0
8.3-8.11
8.9-8.7"
13.2-12.9"
15.9-15.5"
520
382
8.8
202
F
Cayenne Turbo S
911 Carrera 4 PDK
F
201
8.7
6.7
12.2
370
272
911 Carrera 4
D
178
6.8
7.8
10.2
420
309
911 Carrera S Cabriolet PDK
F
267
11.5
8.9
15.9
570
419
6.5
9.0
208
F
9.1
7.5
11.8
540
397
D
184
8.0
6.7
10.4
420
309
911 Turbo S Cabriolet
911 Turbo Cabriolet
911 Turbo S
911 Turbo
911 Targa 4S PDK
F
208
9.0
6.8
12.6
420
212
F
427
580
137
136 Further Information
3) Suspended in GER/EU
"Sold out
2 Overall performance
F
216
9.3
7.6
12.1
580
427
309
"Versatility depending on the tyre set used
216
9.3
7.6
12.1
540
397
F
212
9.1
7.5
11.8
F
Cayenne Turbo
911 Targa 4S
182
6.9
12.4
370
272
911 Targa 4
E
184
8.0
6.7
10.4
420
309
911 Carrera 4S Cabriolet PDK
3.1
16.2
416
306
Panamera S E-Hybrid
3.4
20.8
416
306
Cayenne S E-Hybrid
8.9
206
F
918 Spyder"
7.9
6.5
10.3
370
272
911 Targa 4 PDK
A+
70
3.0
12.7
887
D
652
A+
72
A+
71
A+
79
22
3.1
12.7
887
652
918 Spyder with Weissach Package"
D
172
7.5
419
Panamera Exclusive Series
G
211
9.0
7.1
12.7
340
250
Cayman GTS
E
245
10.5
7.9
15.1
570
419
Panamera Turbo S Executive
F
190
8.2
6.3
11.4
570
15.1
7.9
10.5
368
911 GT3 RS
911 GT3
911 R
Macan S Diesel
Macan S
G
238
10.3
7.8
14.8
325
385
Cayman GT4
F
190
8.2
6.3
11.4
340
250
Cayman GTS PDK
E
245
283
500
239
F
275
202
Cayman PDK
F
242
10.4
7.8
14.9
520
382
Panamera Turbo
G
195
8.4
6.4
11.8
275
202
Cayman
F
239
10.3
7.5
10.9
6.2
7.9
183
242
10.4
7.8
14.9
570
419
Panamera Turbo S
G
211
9.0
7.1
Cayman S PDK
12.7
239
Cayman S
E
245
10.5
7.9
15.1
520
382
Panamera Turbo Executive
F
325
2,549
20.1
13.3
10.3-10.1"
385
283
Cayenne S Diesel
F
199
8.7
6.6
12.2
420
309
13.0-12.4"
420
309
Cayenne S
D
169
7.4
6.0
9.9
370
272
7.5
911 Carrera S PDK
309
420
10.1
6.2
9.9
370
272
911 Carrera Cabriolet PDK
440
324
Cayenne GTS
F
195
8.5
12.3
7.8-7.6"
6.5
370
272
911 Carrera Cabriolet
10.0
385
283
Cayenne S Diesel 3)
E
174
7.7
6.4
11.9
9.3
262
300
258
190
11.6-11.3"
340
250
G
296
12.7
8.9
19.2
500
368
Macan Turbo
G
289
12.4
8.9
18.9
475
350
Macan GTS
G
308
6.9-6.7"
7.6-7.3"
5.9-5.7"
265
360 11.8-11.4"
220
Cayenne Diesel
Cayenne 3
F
190
8.3
6.3
11.7
370
272
911 Carrera S
193
911 Carrera PDK
E-D
E-D
B
E-D
212-2041
164-159"
215-207"
216-208"
9.0-8.7"
6.3-6.1"
9.2-8.8
9.2-8.9"
7.8-7.5"
11.8-11.5"
400
294
7.8-7.4"
911 Carrera
Financial liabilities
7.9
749
562
2
Non-current assets
21,548
74
19,781
76
Inventories
2,509
9
2,157
8
Trade receivables
486
2
522
2
Financial services receivables
598
2
556
2
Other financial assets
2
1,000
727
16
2,761
10
2,294
9
Financial services receivables
1,289
5
1,140
5
Other financial assets
8,505
29
8,368
32
Other receivables
10
0
4
0
Tax receivables
Deferred tax assets.
8
0
0
3
958
4
100
Equity and Liabilities
Equity
10,700
37
9,599
37
Provisions for pensions and similar obligations
2,361
8
2,361
9
Other provisions
772
3
811
3
Deferred tax liabilities
749
2
684
3
Financial liabilities
26,060
100
29,143
24
Other receivables
329
1
346
1
Tax receivables
145
0
141
1
Securities
Leased assets
43
39
0
Cash and cash equivalents
2,485
9
1,560
6
Current assets
7,595
26
6,279
0
0
23
0
119
Annual Report - Porsche AG - 2015
Logistical Backbone in Sachsenheim
The central spare parts warehouse in Sachsen-
heim is Porsche's logistical backbone. It is located
19 kilometres from the headquarters in Zuffen-
hausen. 100,000 spare parts and 35,000 develop-
ment parts are handled over a storage space
of 170,000 square metres. Over 400 employees
process up to 23,000 tickets every day, from
incoming orders through to dispatch. The specially
developed tugger train concept ensures that
operations run smoothly and on schedule. The
tugger trains run continuously between the
46 stations on the plant grounds. Like all of the
vehicles in the warehouse, even the tuggers
are all-electric. The location generates its own
energy. 8,500 photovoltaic modules over an
area of 40,000 square metres provide around
two million kilowatt-hours of electricity every
year. The location also has its own combined heat
and power plant.
New Toolmaking Division
The sports car manufacturer acquired the tool-
making division of Kuka Systems GmbH in the year
under review and continued to operate the divi-
sion as a wholly owned subsidiary of Porsche AG.
Over 600 employees at Porsche Werkzeugbau
GmbH's locations in Schwarzenberg in the
German state of Saxony and Dubnica in Slovakia
strengthen the Company's expertise, especially
in the production of complex aluminium parts.
The subsidiary specialises in method planning,
engineering design, toolmaking and systems
solutions for forming and cutting tools in the
automotive sector. It has already built tools for
the side panels of Porsche's Panamera and
Macan models.
Customers Vouch for Premium Quality
The Porsche brand enjoys an excellent reputation
in the leading markets of the U.S., China and
Europe. According to U.S.-based market research
institution J.D. Power, the sports car manufac-
turer is top-rated by U.S. and Chinese customers,
for instance. The U.S. customer survey named
Porsche as the highest-quality brand for the third
year in a row. As in 2013 and 2014, Porsche was
placed first overall in the 2015 "Initial Quality Study",
in which J.D. Power surveyed 84,000 buyers of
2015 models in the U.S. exactly 90 days after
registration of their new vehicle. The overall rating
is based on 233 different categories including
handling and design, as well as practicality and
Procurement
vehicle comfort. The Porsche 911 was ranked
highest by U.S. customers for the fourth con-
secutive year and received the J.D. Power Award
for the vehicle with the highest customer satis-
faction in the "Midsize Premium Sporty Car"
segment. The Boxster also proved a recipe for
success in the year under review: for the third
time in a row, the mid-engined roadster placed
first in the "Compact Premium Sporty Car"
segment, followed directly by the mid-engined
Cayman Coupé.
Porsche was ranked the top premium automotive
brand by Chinese buyers. The Macan took first
place in the mid-range premium SUV category
in the "2015 China Initial Quality Study" (IQS).
The study is based on feedback from around
21,700 Chinese new car owners who purchased
vehicles between October and June 2015.
Porsche AG added attractive vehicle projects to its product range in
financial year 2015. For instance, procurement successfully ramped
up ambitious projects such as the 911 GT3 RS, the Cayman GT4, the
Boxster Spyder and the latest 911 generation with turbo engines thanks
to close cooperation with our supplier partners.
An additional highlight over the past year was the stellar motorsport
season. Porsche claimed all of the World Endurance Championship titles
and celebrated a double victory at Le Mans. The brand's winning finish
to the season once again underscored Porsche's successful year. Procure-
ment brought the right partners for our motorsport strategy on board
in collaboration with all of the departments involved.
Procurement of Production Materials
As in years past, the cost of materials per vehicle was optimised in
financial year 2015. Long-term cost savings were achieved through close
cooperation with and the early involvement of our business partners in
various cost-focused and product workshops.
In 2015, Porsche AG's cost of materials came
to 3,948 million euro (financial year 2014:
3,608 million euro).
Procurement of Non-production Materials
Procurement played a key role in achieving the
Company's targets in the reporting period,
including with respect to non-production mate-
rials and services. As in the previous year,
capital expenditure in financial year 2015 was
once again very high at 1,261 million euro
(financial year 2014: 1,374 million euro).
Ensuring Product Quality
The Company's focus in the past year was again
on achieving optimal purchased parts quality
for all models. In 2015, procurement therefore
expanded and fine-tuned the initiative to opti-
mise its sub-supplier management system,
which was launched in financial year 2014. The
improved transparency enabled the Company
to identify risks at an early stage and continue
to optimise long-term quality. The various
quality awards that Porsche received in 2015
were also a reflection of this feedback from
our customers.
Stable Supply Situation for Procured
Components
Porsche AG delivered 225,121 vehicles to
customers in the past financial year, a new
record for the Company. Procurement ensured
that all vehicles were supplied at all times.
Mission E - The Future of Porsche
The Supervisory Board's endorsement of the
electric vehicle presented at the IAA as Mission E
makes Porsche's ambitions for the future clear.
The aim is to refine Porsche's unmistakable DNA
and to master the challenges posed by Mission E.
This applies in particular to procurement, which
will work together with new suppliers from other
areas, such as the consumer industry, which
have no experience in the automotive sector. In
addition, measures must be taken to ensure
that charging infrastructure is widely available.
Employee Satisfaction Within Procurement
Motivated, satisfied employees were the foun-
dation of the success experienced in the past
financial year. We work hand in hand with our
team across Group departments and brands to
solve problems and optimise processes. This
is also underscored by the outstanding results
again delivered by Porsche AG in 2015.
Sales, Production and Procurement
118
State-of-the-art Quality Centre in Leipzig
Following the successful ramp-up of the Macan,
the Leipzig location in Saxony prepared for the
next milestone project in the year under review.
Porsche again invested around 500 million euro
in expanding the plant since the Panamera will
also be manufactured in its entirety in Leipzig
from 2016. Among other things, Porsche built
a new body shell production facility for the
model. The quality and analysis centre spans
over 6,000 square metres and is a state-of-
the-art quality centre for automotive production.
It bundles all areas of vehicle optimisation in
one place to create the ideal conditions for the
series production of the Panamera and the
Macan. In addition, every Porsche produced in
Leipzig must put its sports car DNA to the
test on the plant's own FIA-certified racing track
before being delivered.
First Cayenne Models from Osnabrück
Production capacity for the Cayenne, Macan
and Panamera models at the Leipzig plant is
well utilised and so the first Cayenne left the
assembly line in Osnabrück in financial year
2015. Around 20,000 units of the SUV will
be assembled at the Volkswagen location in
Lower Saxony in the future. Porsche invested
25 million euro in final assembly at the plant.
An unloading station was constructed that
fully automatically unloads the body shells
that were pre-assembled and painted at Volks-
wagen's Bratislava plant.
In financial year 2015, Porsche produced a total of 234,497 vehicles,
15,5 percent more than in the previous year. All vehicles of the 911 and
Boxster model series as well as the 918 Spyder super sports car rolled
off the line at the main plant in Stuttgart-Zuffenhausen. A total of 43,239
sports cars were produced, of which 31,373 were 911s, 11,491 sports
cars from the Boxster and Cayman model series and 375 units of the
918 Spyder. Porsche produced 164,968 vehicles at the Leipzig plant, with
the Cayenne model series accounting for 63,897 units, the Macan model
series for 86,016 units and the Panamera model series for 15,055 vehicles.
10,487 units of the Cayman and, since June last year, 15,803 Cayennes
were produced at the Volkswagen Group's multi-brand location in Osnabrück.
Changes to the Executive Board
At the end of financial year 2015, the Supervisory Board of Porsche AG
appointed Albrecht Reimold as the new member of the Executive Board for
Production and Logistics, succeeding Oliver Blume. Reimold took up the
new role on February 1, 2016. Blume has been Chairman of the Executive
Volume of Vehicles
Produced
in units
127,793
203,097
165,808
151,999
234,497
2011 2012 2013 2014 2015
Sustainability Within Procurement
Sustainability and value-added growth do not
have to be mutually exclusive. An initiative to
harmonise and implement sustainability prin-
ciples among automotive manufacturers along
the supply chain was launched to create an
overarching standard.
Board of Porsche AG since October 2015 and
had been additionally responsible for Produc-
tion and Logistics until Reimold's appointment.
Reimold transferred to Zuffenhausen from
Bratislava, where - for four years - he managed
the Volkswagen plant that also produces the
body shell of the Porsche Cayenne. Before
that, he was responsible for the Audi plant in
Neckarsulm.
At the Zuffenhausen plant, around 400 million
euro will be invested in a new body shell
production facility and a good 80 million euro
in a new engine plant. Porsche will also invest
a two-digit million euro figure in establishing
central workshops, a new pilot centre and in
expanding the saddlery. As well as all 911 and
718 Boxsters, the 718 Cayman models will
also roll off the line here from August 2016
following the expansion of the assembly line.
The new engine plant will be opened in June
2016 and includes a state-of-the-art assembly line
with logistics space and engine testing systems
as well as offices and recreation rooms. Around
400 employees will work here over two storeys.
The new plant is specially designed for the pro-
duction of V8 engines. Expanding engine capacity
in Zuffenhausen enables synergies to be better
leveraged within the Volkswagen Group. The
engine will be the first to be supplied to the Group
by Porsche.
The plan for renovating the entire "Porsche Werk 4"
industrial zone was awarded top marks by the
German Sustainable Building Council (Deutsche
Gesellschaft für nachhaltiges Bauen, "DGNB"). It
is the first award given by the DGNB to an indus-
trial zone. The master plan for the plant was
assessed using 40 sustainability criteria. As well
as top marks in the environmental, economic,
technical and process quality categories, Porsche
scored particularly well in workplace design.
The decision made by the Company's Supervisory
Board at the end of the financial year to build
Porsche's first all-electric sports car signals the
start of a new chapter in the history of the brand.
Porsche is continuing to focus on sustainable
growth with its Mission E project. The Company
will invest around 700 million euro in Zuffenhausen
alone to build a new paint shop and dedicated
assembly facilities over the next few years. The
existing engine plant will be upgraded for the
production of electric drives and the body shell
production facility will be expanded.
Innovative Ideas Implemented
The production line for the 918 Spyder in Stuttgart-
Zuffenhausen was dismantled after the model
reached its limit of 918 units in June 2015. Around
80 selected employees handcrafted the plug-in
hybrid sports car at ten main stations and 21 pre-
assembly stations on an area of 4,000 square
metres. Porsche had implemented a number of
innovative ideas relating to assembly and quality
assurance. In particular, the assembly line for
the 918 Spyder met the highest ergonomic pro-
duction standards. Cordless tools were used
along the entire assembly line, for example, and
modern scissor lifts made it easier to mount the
140 kilogram high-voltage battery. The leather
upholstery and assembly tables set new bench-
marks for ergonomics and flexibility.
400
employees have been
working in the
new engine plant
in Zuffenhausen
since June 2016.
700,000,000 Euro
will be invested by
Porsche in the Mission E
project in Zuffenhausen
alone.
High Level of Investment in the Main Plant
The negotiations between the Executive Board
and the general works council of Porsche AG
led to investments of over 1 billion euro in the
expansion of the Zuffenhausen, Weissach and
Ludwigsburg locations to safeguard the con-
tinuing existence of these sites. The package
of measures will also boost the Company's
productivity, flexibility and efficiency and rules
out redundancies until 2020.
2,549
We cooperate closely with our business partners
to make sustainable growth a priority. To this
end, suppliers must accept our sustainability
principles in order to establish a supplier rela-
tionship with Porsche AG.
Sales, Production and Procurement
million euro
Dec. 31, 2015
%
Dec. 31, 2014
%
Assets
Intangible assets
Property, plant and equipment
Equity-accounted investments
3,286
11
2,953
11
4,580
16
4,087
16
332
1
334
1
Other equity investments
50
of the Porsche AG Group
Net Assets
Annual Report - Porsche AG - 2015
123
121
Annual Report - Porsche AG - 2015
Sales Revenue
in million euro
13,865 14,326
10,928
2011
17,205
2012 2013 2014 2015
21,533
Financial
Analysis
120
Net Assets,
and Results
of Operations
Net Assets
As of December 31, 2015, the total assets of the Porsche AG Group stood
at 29,143 million euro, 12 percent higher than on the prior-year reporting
date.
Non-current assets increased by 1,767 million euro to 21,548 million euro.
The increase relates mainly to fixed assets and to deferred taxes. Non-
current assets expressed as a percentage of total assets amounted to
74 percent (prior year: 76 percent).
At the end of the reporting period, the fixed
assets of the Porsche AG Group - i.e., the
intangible assets, property, plant and equip-
ment, leased assets, equity-accounted
investments and other equity investments -
came to 11,009 million euro, compared with
9,691 million euro in the previous year.
Fixed assets expressed as a percentage of total
assets increased to 38 percent (prior year:
37 percent). Intangible assets increased from
2,953 million euro to 3,286 million euro. The
increase mainly relates to capitalised develop-
ment costs. The largest additions relate to the
Panamera and Cayenne model series. Property,
plant and equipment increased in comparison to
the prior year by 493 million euro to 4,580 million
euro, primarily due to additions to other equip-
ment, furniture and fixtures, as well as advance
payments made and assets under construction.
These additions consist mainly of tools and
construction work for the new generations of
vehicles. Leased assets increased by 467 million
euro to 2,761 million euro in comparison to the
prior year. This item contains vehicles leased to
customers under operating leases.
Non-current other financial assets increased
by 137 million euro, primarily as a result
of currency effects relating to the derivative
financial instruments.
Financial Positions
Production
9
13
3,404
16
2,719
16
-22
0
341
2
Profit before tax
3,382
16
3,060
18
Income tax income/expense
- 1,047
-5
- 859
-5
Other operating income
Other operating expenses
Operating profit
Financial result
Profit after tax
Depreciation and amortisation across all functions
increased to 2,124 million euro compared with
1,878 million euro in the prior year. This primarily
relates to the depreciation and amortisation of
leased assets. There was also an increase in the
amortisation of development costs and depre-
ciation of tools that are recognised under other
equipment, furniture and fixtures.
Other operating income rose from 895 million
euro to 1,286 million euro. The increase is mainly
attributable to increased income from the rever-
sal of provisions and accruals as well as higher
income relating to forward exchange transactions.
Other operating expenses rose from 450 million
euro to 1,561 million euro. The increase mainly
reflects from higher expenses in connection with
forward exchange transactions.
-3
Operating profit amounted to 3,404 million euro,
-450
- 1,561
100
17,205
100
- 15,441
-72
- 12,885
-75
6,092
28
4,320
25
- 1,505
-7
-1,257
-7
-908
-4
-789
-5
1,286
6
895
6
-7
an increase of 685 million euro in comparison
with the previous year.
2,335
11
Current
Deferred
Profit after tax
thereof profit attributable to shareholders.
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
128
Financial Data
FY 2015
21,533
- 15,441
6,092
FY 2014
17,205
- 12,885
4,320
Consolidated Statement of Comprehensive Income
of Porsche AG for the period January 1 to December 31, 2015
million euro
Profit after tax
FY 2015
FY 2014
2,335
684
Income tax income/expense
Profit before tax
Financial result
Other financial result
2,201
13
The financial result amounted to minus 22 million
euro (prior year: 341 million euro). The decrease
in the financial result was due to higher expenses
from fair value measurement relating principally
to exchange rate and interest rate hedging trans-
actions that are not included in hedge accounting.
In addition, in the prior year this item included
income of 271 million euro relating to the change
of accounting for the investment in Bertrandt AG
using the equity method.
The healthy cost structure and the sustainably
high earnings power of the Group are also
reflected in the key performance indicators.
The Porsche AG Group achieved an operating
return on sales of 16 percent in the past finan-
cial year (prior year: 16 percent). The pre-tax
return on sales was 16 percent (prior year:
18 percent). The return on capital, defined as
the ratio of the operating result after tax to
the average invested assets of the automotive
division, amounts to 31 percent (prior year:
27 percent). The post-tax return on equity was
23 percent (prior year: 24 percent).
Financial Analysis
127
Annual Report - Porsche AG - 2015
Financial
Data
Summary of the Consolidated
Financial Statements of
Porsche AG Without the Notes
21,533
Consolidated Income Statement
million euro
Sales revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
Share of profits and losses of equity-accounted investments
Finance costs
of Porsche AG for the period January 1 to December 31, 2015
%
Dec. 31, 2014
%
1,884
8
Trade payables
2,214
8
1,856
7
Other financial liabilities
3,127
11
2,058
8
Other liabilities
850
3
810
3
Tax payables
Current liabilities
489
1
486
2
9
2,768
Financial liabilities
5
Other financial liabilities
776
3
381
1
Other liabilities
Non-current liabilities
265
1
244
1
10,971
7,472
7,950
30
Provisions for taxes
Other provisions
63
0
80
0
1,460
5
1,337
26
3,469
37
33
Payments made in respect of profit transfer and
dividends resulted in a cash outflow in the amount
of 1,232 million euro (previous year: 1,414 million
euro). This was partly offset by a capital contri-
bution amounting to 707 million euro (prior year:
829 million euro) made by Porsche Holding
Stuttgart GmbH.
The net available liquidity of the automotive
division - i.e. its gross liquidity less financial
liabilities and excluding the financial services
business in each case - improved from
195 million euro as at December 31, 2014 to
1,456 million euro as at December 31, 2015.
Cash Flow
from current
business activities
in million euro
3,179
2,917
3,843
2013 2014 2015
Results of Operations
The Porsche AG Group's profit after tax
increased by 134 million euro from 2,201 million
euro in the corresponding prior-year period to
2,335 million euro in the reporting period. The
tax rate in the reporting period was 31 percent
(prior year: 28 percent).
Group revenue of the Porsche AG Group was
21,533 million euro in the reporting period
(prior year: 17,205 million euro). In the past
financial year, the Porsche AG Group sold
218,983 vehicles. This corresponds to an
increase in unit sales of 17 percent compared
to the prior year. The principal contribution
to the growth in sales volume and revenue was
made by the new Macan model with 81,383
vehicles sold. Sales of the Panamera series
declined by 6,999 to 15,473 vehicles due to
a change of model.
The cost of sales increased in line with revenue
to 15,441 million euro (prior year: 12,885 million
euro), which represents 72 percent of revenue
(prior year: 75 percent). The increase in the
gross margin from 25 to 28 percent mainly
results from the increase in revenue due to
exchange rate effects. In absolute terms, the
cost of sales rose by 2,556 million euro or
20 percent. This increase is additionally due
to higher research and development costs
recognised in the income statement, with a
simultaneous decrease in the capitalisation
rate to 48 percent (prior year: 55 percent).
Distribution expenses rose from 1,257 million
euro to 1,505 million euro due to the higher
volume of sales. Administrative expenses
increased from 789 million euro to 908 million
euro. Distribution expenses remained un-
changed in relation to revenue at 7 percent,
while administrative expenses fell slightly
to 4 percent.
The personnel expenses contained across all
functions of the Porsche AG Group increased
from 2,165 million euro to 2,605 million euro.
The average number of employees during the
year rose by 2,238 to 23,541.
Results of Operations
of the Porsche AG Group
million euro
Sales revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Dec. 31, 2015
There was a change in cash flows from financing
activities from minus 978 million euro in the prior
year to minus 838 million euro in the most
recent financial year.
The cash flows from investing activities resulted in
a cash outflow of 2,119 million euro in the report-
ing period following 2,248 million euro in the prior
year. Investments in intangible assets (excluding
development costs capitalised) and property,
plant and equipment increased from 1,047 million
euro in the previous year to 1,388 million euro in
the period under review. Additions to capitalised
development costs amount to 1,039 million euro
following 1,067 million euro in financial year 2014.
Cash flows from operating activities amounted
to 3,843 million euro in the 2015 reporting
period following 3,179 million euro in the prior
year. The significant factors were increased
profit, depreciation and amortisation, non-cash
income and expenses, and conversely higher
income tax payments.
Financial Position
29,143
100
26,060
100
124
Financial Analysis
Deferred tax assets amounted to 727 million euro
compared with 562 million euro in the prior year.
As a percentage of total assets, current assets
amount to 26 percent compared to 24 percent
in the prior year. Inventories increased from
2,157 million euro in the prior year to 2,509 million
euro at the end of the reporting period. In com-
parison to the prior reporting date, there was
an increase of approximately 5,400 units in new
vehicle inventories.
Current other financial assets increased slightly
by 42 million euro to 1,000 million euro. The
decrease in current derivative financial instru-
ments was countered by a slightly higher balance
on the clearing account with Porsche Holding
Stuttgart GmbH.
Cash and cash equivalents increased significantly
year on year, climbing by 925 million euro to
2,485 million euro.
The equity of the Porsche AG Group increased
by 1,101 million euro to 10,700 million euro
compared with the prior-year reporting date. The
profit after tax, profit transfer and dividends of
430 million euro together with currency translation
differences, revaluations from pension plans and
a capital contribution by Porsche Holding Stuttgart
GmbH amounting to 707 million euro generated
increases in equity. By contrast, the changes
8,511
in the cash flow hedge reserve in the amount of
307 million euro after tax represented reductions
in equity.
euro. This decrease primarily reflects the change
in the remaining maturity of a bond in the amount
of 1,000 million euro classified as non-current
in the prior year.
Provisions for pensions and similar obligations
remained unchanged as against the prior year,
at 2,361 million euro.
Non-current other financial liabilities recorded
growth of 395 million euro. The increase mainly
relates to marking derivative financial instru-
ments to market.
Current liabilities increased significantly from
8,511 million euro to 10,971 million euro. Current
liabilities expressed as a percentage of total
capital rose from 33 percent in the prior year to
37 percent as of December 31, 2015. Current
financial liabilities grew by 884 million euro. This
increase primarily reflects the change in the
maturity of a bond in the amount of 1,000 million
euro.
Deferred tax liabilities amounted to 749 million
euro compared with 684 million euro in the
prior year.
Trade payables increased to 2,214 million euro
after 1,856 million euro in the previous year.
This increase is attributable to higher volumes
of investments and business.
Current other financial liabilities amounted to
3,127 million euro (prior year: 2,058 million
euro). The increase mainly relates to marking
derivative financial instruments to market.
125
Annual Report - Porsche AG 2015
126
Non-current liabilities mainly relate to financial
liabilities, pension provisions, deferred tax
liabilities, other financial liabilities and other
provisions. They declined by 478 million euro
to 7,472 million euro in comparison with the
prior year. Non-current liabilities expressed as
a percentage of total capital decreased from
30 percent in the prior year to 26 percent at the
end of the financial year. At the same time, non-
current financial liabilities fell by 920 million
Annual Report Porsche AG - 2015
Non-current and current financial services
receivables rose from 1,696 million euro to
1,887 million euro. These items mainly contain
receivables from finance leases and receivables
from customer and dealer financing.
103
- 182
0
- 254
0
4
0
-258
0
-271
0
13
0
-632
- 307
268
130
-900
-437
129
992
- 1,029
- 1,429
103
- 783
125
-101
65
Assets
as of December 31, 2015
of Porsche AG
of Financial Position
Consolidated Statement
Dec. 31, 2014
Dec. 31, 2015
million euro
130
Annual Report Porsche AG 2015
129
2
1
thereof profit attributable to non-controlling interests
958
2,298
thereof profit attributable to shareholders
960
2,299
Total comprehensive income
- 1,241
-36
466
1,707
Intangible assets
Subscribed capital
0
3,060
3,382
341
- 22
545
116
-203
142
-1
4
2,719
3,404
-450
- 1,561
1,286
-789
-908
- 1,257
- 1,505
Cash flow hedges, net of tax
Deferred taxes relating to cash flow hedges
Cash flow hedges, before tax
Transferred to profit or loss
Available-for-sale financial assets
125
Fair value changes recognized in other comprehensive income
Available-for-sale financial assets, before tax
103
125
- 458
146
0
- 1,230
- 1,903
2
1
2,199
2,334
2,201
2,335
90
-877
- 1,137
-859
-1,047
Deferred taxes relating to other comprehensive income
Other comprehensive income, net of tax
Other comprehensive income, before tax
18
Share of other comprehensive income of equity-accounted investments
that may be reclassified subsequently to profit or loss, net of tax
Items that may be reclassified subsequently to profit or loss
Deferred taxes relating to available-for-sale financial assets
Available-for-sale financial assets, net of tax
Transferred to profit or loss
895
Property, plant and equipment
Leased assets
2,953
Other financial assets
Change in inventories
556
598
Financial services receivables
Other non-cash expense/income
522
486
Trade receivables
Share of profits and losses of equity-accounted investments
2,157
2,509
Inventories
Gain/loss on disposal of non-current assets
Financial Data
Depreciation and amortization
19,781
21,548
Non-current assets
Income taxes paid
45
and property, plant and equipment
Capital reserves
1,000
7,857
958
329
Investments in intangible assets (excluding capitalised development costs),
Equity and Liabilities
Cash flow from operating activities
Change in financial services receivables
Change in leased assets
Change in other provisions
Change in pension provisions
39
26,060
29,143
6,279
7,595
Current assets
1,560
2,485
Cash and cash equivalents
43
Securities
141
145
Tax receivables
Change in receivables (excluding financial services)
Change in liabilities (excluding financial liabilities)
346
Other receivables
3,286
7,150
Retained earnings
Cash and cash equivalents at the beginning of the period
4
10
Other receivables
8,368
8,505
Other financial assets
million euro
1,140
1,289
Financial services receivables
23
50
Other equity investments
334
332
Equity-accounted investments
2,294
2,761
of Porsche AG for the period January 1 to December 31, 2015
Consolidated Statement of Cash Flows
4,087
4,580
Tax receivables
Additions to capitalised development costs
Deferred tax assets
16
2,796
2,401
Change in equity investments
Equity before non-controlling interests
10,698
9,596
Non-controlling interests
2
3
Cash received from disposal of intangible assets and property, plant and equipment
Change in investments in securities
Equity
10,700
9,599
Change in loans
Provisions for pensions and similar obligations
2,361
2,361
Other provisions
772
811
562
727
Profit before tax
8
Fair value changes recognized in other comprehensive income
45
Exchange differences on translating foreign operations, before tax
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax
Deferred tax liabilities
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income
211
-65
-652
194
Pension plan remeasurements recognized in other comprehensive income, net of tax
146
Cash flow hedges
Share of other comprehensive income of equity-accounted investments
that will not be reclassified to profit or loss, net of tax
Items that will not be reclassified to profit or loss
Exchange differences on translating foreign operations
Unrealized currency translation gains/losses
Transferred to profit or loss
-458
138
2 Relates to investments in intangible assets and property, plant and equipment.
"As of December 31.
1,939
2,201
2,335
million euro
Profit after tax
2,784
million euro
3,382
Profit before tax
2,579
2,719
3,404
81,916
Operating result (EBIT)
2,917
3,179
3,843
3,060
million euro
D-70435 Stuttgart
Imprint
Deliveries
IThaus Münster GmbH & Co. KG
Printed by
Werkfotos Porsche AG
Max Kovalenko
Christoph Bauer
Marco Prosch
Klaus Hepp
Photography
Concept & Design design hoch drei GmbH & Co. KG
Director Corporate Communications
Frank Scholtys,
Vice President Communications
Dr. Josef Arweck,
www.porsche.com
Phone: +49 711 911-0
Germany
million euro
Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1
Managers and contact persons
Published by
Further Information
Cash flow from operating activities
10,405
1,878
Equity
Total assets
14,326
17,205
21,533
million euro
Sales revenue
Financials
1,865
2,165
Fixed assets
2,605
Personnel expenses
19,456
22,401
24,481
number
Employees"
24,798
22,383
15,055
units
million euro
1,415
Capital expenditure2
29,143
2,124
million euro
Depreciation and amortisation
8,282
of vehicles worldwide*
12,095
million euro
Cost of materials
2,236
2,114
million euro
2,427
8,539
9,691
11,009
million euro
9,039
9,599
10,700
million euro
24,560
26,060
million euro
+19%
Panamera
225,121 (+35,272)
units
918 Spyder
units
911
165,808
203,097
234,497
units
Production
22,032
24,864
17,207
units
Panamera
84,041
73,119
units
Cayenne
44,636
80,216
units
31,373
375
31,590
29,751
545
Australia/New Zealand
4,519
total deliveries
Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1
D-70435 Stuttgart
Germany
Phone: +49 711 911-0
66,005
79,700
units
Macan
Cayenne
59,363
86,016
units
Macan
28,996
23,211
21,978
units
Boxster/Cayman
35
312
25,704
65,941
22,663
8,520
Middle East and Africa
China
58,009
23,597
4,972
Eastern Europe
4,807
2,595
Italy
Spain/Portugal
Asia-Pacific
5,583
Austria
1,367
France
5,015
Germany
28,953
Northern Europe
2,187
Benelux
4,996
United Kingdom
12,238
Brazil
732
Latin America
3,208
USA
51,756
Canada
6,413
* between January 1, 2015 and December 31, 2015
Switzerland
3,822
South Korea
3,612
Russia
5,290
Key Performance Indicators
units
Japan
6,527
Boxster/Cayman
301
566
Annual Report - Porsche AG - 2015
918 Spyder
30,205
161,982
30,510
189,849
units
units
2015
31,350
2014
Deliveries
2013
units
225,121
911
of the Porsche AG Group
With its new cor-
porate strategy,
Porsche is setting
Strategy 2025
DMG
Strategie 2025
PORSCHE
Michael Steiner appointed new Member of the
Executive Board for Research and Development
In May 2016, the Supervisory Board appointed Michael
Steiner as the successor to Wolfgang Hatz in the role of
Member of the Executive Board with responsibility for
Research and Development. Steiner, who studied mechanical
engineering at the Technical University of Munich, previously
spent 14 years in leading roles at Porsche's research and
development centre. Most recently, he had overseen Com-
plete Vehicle Engineering/Quality Management since 2011.
In his future role, Steiner will primarily be tackling such
issues as electrification, digitalisation and connectivity. The
aim is to combine new technologies with the traditional
Porsche philosophy.
With its new corporate strategy, Porsche is setting itself
ambitious targets to be achieved by 2025. The future of
the sportscar - this is the theme of Strategy 2025. At the
heart of the strategy is the future product portfolio. The
sportscar of the future will blend the history and values of
the Porsche brand with innovative technologies, while at
the same time ensuring sustainability. In this regard, topics
such as electromobility, digitalisation and connectivity will
10
10
Albrecht Reimold appointed to Executive Board
On February 1, 2016 Albrecht Reimold became the new
Member of the Executive Board with responsibility for
Production and Logistics. He succeeded Oliver Blume, who
was appointed Chairman of the Executive Board in 2015.
Reimold is a trained toolmaker and production technician,
who has switched to Zuffenhausen from Bratislava. As Chair-
man of the Executive Board and Board Member with re-
sponsibility for Technology at Volkswagen Slovakia, he spent
four years overseeing the Volkswagen plant at this loca-
tion, which is also where the body of the Porsche Cayenne
is manufactured. In the coming years, Reimold will mainly be
tasked with integrating the production for an electric vehi-
cle at the Zuffenhausen headquarters and safeguarding the
journey of the long-standing site into the automotive future.
At the end of the 2015 business year, the Supervisory Board
of Porsche AG green-lighted the construction of the first
purely electrically powered Porsche. As a result, the future
vehicle generation has been at the centre of activities at
the Zuffenhausen headquarters since 2016. Porsche is cre-
ating an additional 1,200 workplaces and is investing more
than one billion euro into this effort. In the coming years,
a new paint shop is to be created along with a separate as-
sembly plant for the electric vehicle. The new engine plant
opened in July is to be expanded for the manufacture of the
electric drives, while the existing body shop will also be
developed. Materials handling technology will connect the
new paint shop with the final assembly.
Course set for first electric Porsche vehicle
1.6%
itself ambitious
targets to be
achieved by 2025.
17
Due to the various construction measures required for the
new electric vehicle, Porsche is seeking open dialogue
with residents as well as an active exchange with local and
regional politicians. The aim is to allay the concerns and
reservations of all parties involved and to create absolute
transparency. January saw the publication of the first issue of
the residents' journal "targa", containing information on the
current state of planning along with the background behind
the project and development of the main plant. In March
and April, Porsche held an event to inform its neighbours of
the project progress in a face-to-face setting. In addition, the
company is making information about the project available
on a website.
The future of
At the end of August 2016, the Porsche Digital Lab, which
works closely with Porsche Digital GmbH, was opened in
the Berlin district of Friedrichshain. The Lab serves as a
platform for Porsche to interact with technology companies,
the world of science and the flourishing start-up scene. The
ever-increasing networking of vehicles and altered mobility
concepts are direct consequences of the digital transforma-
tion of the automotive industry. In the Digital Lab, teams from
Porsche AG and MHP Management- und IT-Beratung GmbH
identify and test innovative information technologies for
internal processes, customer interaction as well as products
and services - all of which will allow the Porsche brand
of Strategy 2025.
by one fifth to 2.0 million - the fourth regressive year in
succession.
In the North American markets for passenger cars and
light commercial vehicles (up to 6.35 tonnes), the reporting
year's sales figures of 21.1 million vehicles were 1.8 per
cent above the previous year's record. In the USA, demand
slowed over the course of the year. Nevertheless, with a
figure of 17.6 million units, it surpassed the previous year's
peak level by 0.5 per cent. In Canada (plus 2.6 per cent)
and Mexico (plus 18.6 per cent), sales figures continued
to increase. In Brazil however, the slump in the market
continued: The number of newly registered vehicles dropped
In 2016, the global automobile market grew by 5.4 per cent
to 81.1 million vehicles. Demand increased in North America,
Western Europe and the Asia-Pacific region, while South
America and Eastern Europe did not attain the level of the
previous year. In Germany, 3.4 million vehicles were regis-
tered as passenger cars in 2016, which shows a rise of
4.5 per cent compared with the previous year. The factors
behind this were the higher level of real earnings, the strong
position of the labour market and favourable financing op-
tions. The French market underwent similar growth, increas-
ing by 5.2 per cent. In the United Kingdom, volume slightly
exceeded the previous year's record level by 2.3 per cent.
By targeting built-up demand, Italy (plus 15.4 per cent)
and Spain (plus 10.9 per cent) even reported double-digit
growth rates.
The US economy lost momentum in 2016. At 1.6 per cent,
growth was below the previous year's level of 2.6 per cent,
and the economy was also supported by private consumer
expenditure. The US dollar remained strong, putting pressure
on domestic goods exports. In South America, Brazil experi-
enced a second year of recession. Economic output dropped
by 3.6 per cent. By contrast, the Chinese growth rate was
6.7 per cent, which is virtually the same as the 6.9 per cent
from the previous year.
In the 2016 financial year, global economic growth slowed
slightly to 2.3 per cent (previous year: 2.6 per cent). Growth
diminished particularly in industrial nations. The economic
recovery continued in Western Europe, but growth in gross
domestic product (GDP) was below the previous year
(2.0 per cent) at 1.7 per cent. The United Kingdom's refer-
endum in June 2016 had a subduing effect as a slight
majority opted for the nation's withdrawal from the European
Union (EU). Uncertainty in the financial markets and unclear
economic prospects for both the UK and Europe were
the immediate consequences. In Germany, however, positive
consumer attitudes and the strong labour market prevailed.
GDP in the reporting year grew by 1.8 per cent, which was
slightly stronger than in the previous year (1.5 per cent).
Moderate growth in the global economy
BUSINESS PERFORMANCE
15
Performance Important events
14
In the 2017 financial year, Porsche AG expects to record
moderate growth in deliveries and revenue compared with
the 2016 reporting year. The attractive product range
offered by Porsche will provide the basis to achieve this aim.
We will gain impetus from the new Panamera, particularly
with its plug-in hybrid versions and the Sport Turismo.
Despite a high level of investment in vehicle projects and in
the expansion and renewal of company sites, continuing
productivity and process improvements coupled with strict.
cost management should ensure that the high earnings
target at Porsche AG will continue to be met.
Development forecast
Our forecasts show that the passenger car markets in the
Asia-Pacific region will continue to grow in 2017, albeit at a
slower rate. In China, demand will grow due to the ever-
increasing need for individual mobility. The rate of growth is
expected to slow in comparison to the previous year as the
tax reduction for vehicles with a displacement of up to
1.6 litres was halved at the end of 2016.
to be slightly below that of the previous year, following
positive developments in recent years. This is also true of
the passenger car market - including light commercial
vehicles (up to 6.35 tonnes) - in North America as a whole
and the USA in particular, where we do not believe that the
high levels of the previous year will be achieved. Vehicles in
the SUV, pick-up and van segments are likely to remain the
most in-demand models. Demand for passenger cars is
predicted to rise in South America's largest market of Brazil,
which had recorded very heavy losses in previous years.
In 2017, we expect the global passenger car markets to
develop at different rates in the individual regions. Overall
demand for new vehicles is likely to increase at a slower rate
than in 2016. In Western Europe, we anticipate that the
market volume will be slightly below the very high level
recorded in the reporting year. This includes our domestic
market in Germany, where we expect the volume in 2017
Mixed picture in the automobile markets
a source of uncertainty. However, we expect to see similarly
strong growth in gross domestic product (GDP) in Germany
in 2017 as in the reporting year. It is anticipated that the
labour market will remain stable and continue to support
private consumption. In North America, we expect that the
economy will expand more strongly in 2017 than in the
previous year. According to our forecasts for South America,
Brazil will overcome its recession and record slight growth.
We believe that the Chinese economy will continue to grow,
but at a slower rate than in the previous year.
In Western Europe, our forecasts indicate that the eco-
nomic recovery will slow slightly in 2017 in comparison to
the reporting year. The impact of the Brexit negotiations
between the European Union (EU) and the United Kingdom is
in most industrial nations gives us cause for optimism.
However, a tendency towards protectionism, possible turbu-
lence on the financial markets and structural deficits in
certain countries all present risks. The outlook is also cloud-
ed by geopolitical tensions and conflicts.
In the Asia-Pacific region, the market volume for passenger
cars rose by 11.9 per cent to 35.3 million units. The Chinese
market was once again the clear driver of growth. The tax
reduction introduced in October 2015 affecting the acquisi-
tion of vehicles with a displacement of up to 1.6 litres
contributed to the new Chinese sales record of 22.9 million
vehicles (plus 17.9 per cent). This predominantly benefitted
low-cost, entry-level models.
Our plans are based on the assumption that growth in the
global economy in 2017 will exceed the level of the previous
year. The positive outlook of a continued economic recovery
Record year with new product highlights
+6%
1.7%
1.8%
2.3%
6.7%
2016
2015
2014
2013
Performance - Important events
16
Germany 0.2%
Western Europe 0%
USA 2.2%
Global economy 2.6%
China 7.7%
Percentage change in GDP
Economic growth
The high level of demand for the SUV models Macan and
Cayenne - once again the best-selling model ranges in
the 2016 financial year - demonstrates Porsche's strong
position in these segments. The Cayenne saw
In November, the market launch of the new Panamera -
under the motto "courage changes everything" - was a
sensation. The second generation of this vehicle type
elegantly combines the seemingly contradictory concepts
of performance and comfort. In the year of the model
change, a total of 15,240 Panamera models were handed
over to customers.
In total, the 2016 figure of 237,778 units means that more
new vehicles were sold to customers than ever before in the
history of Porsche.
The newly established 718 model range is a reminder of
historic racing victories, with the new 4-cylinder turbo boxer
engine making it a sportscar suitable for everyday driving.
At 23,620 deliveries, including the predecessor range, the
718 Boxster and 718 Cayman models achieved a very
positive market response, with substantially higher figures
than in the previous year. Together with the iconic Porsche
911 sportscar for which the 2016 figure of 32,409 deliver-
ies (incl. 44 units of the 918 Spyder) also exceeded that
of the previous year - a tangible increase in demand for two-
door sportscars was observed. The special 911 R model.
in particular received a great deal of attention. It represents
the purest form of two-door, road-going sportscar that
Porsche offers. In spring 2016, the limited-edition series not
only met with a fantastic media response, but also extremely
high levels of customer interest.
Further growth possible
OUTLOOK
the PFS companies have developed their processes and meth-
ods in each market accordingly, including in areas such as
risk management.
In mid-November 2016, Porsche opened the world's fifth
Porsche Experience Centre in Los Angeles, in the US state
of California. The company invested 60 million dollars into
the 20-hectare site, on which customers and Porsche fans can
test the power, dynamic performance and safety of the
vehicles and gain first-hand experience of the Porsche brand.
The new Experience Centre also features an ever-changing
race car exhibition and a 6.5-kilometre test and development
track with eight training modules. The site also serves as
the headquarters of Porsche Motorsport North America.
New Experience Centre in Los Angeles
In November 2016, five renowned experts from the world of
science and society met with the Executive Board of Porsche
AG for the inaugural session of the Porsche sustainability
advisory committee. Prof. Dr Maximilian Gege (co-founder of
B.A.U.M., the largest corporate network for sustainable
economies in Europe), Dr Sonja Peterson (Scientific Director
of the Kiel Institute for the World Economy since 2012),
Prof. Dr Lucia A. Reisch (member of the German Council for
Sustainable Development since 2010 and Director of the
Research Centre for Consumers, the Market and Politics at
the Zeppelin University of Friedrichshafen since 2012),
Prof. Dr Ortwin Renn (Scientific Director of the Institute for
Advanced Sustainability Studies e.V. (IASS) in Potsdam)
and Prof. Dr Dr Klaus Töpfer (former German Federal Minister
Establishment of the Porsche sustainability
advisory committee
Joint venture for high-performance charging network
At the end of November 2016, Porsche invested in a joint
venture for an ultra-fast, high-performance charging network
for electric vehicles. With this effort, the Volkswagen Group
with Audi and Porsche, Daimler AG, the BMW Group and Ford
Motor Company intend to achieve significant gains in the
long-distance travel capability of vehicles with electric motors.
This year, the automotive manufacturers will begin with
the creation of 400 new charging stations on motorways and
other highly frequented roads along Europe's main travel
routes. As a result, customers whose vehicles are equipped
with the Combined Charging System (CCS) standard will gain
public access to several thousand charging stations by
2020. The new charging network takes the existing technical
standards of AC and DC charging to the next level of perfor-
mance. The planned infrastructure will then enable rapid DC
charging with a capacity of up to 350 kW.
for the Environment, Nature Conservation and Nuclear Safety)
will advise the company on future questions and challenges
relating to relevant ecological and social trends.
to its own advantage. Porsche also took a stake in the
venture capital fund e.ventures and the parking service
provider Evopark.
to use the digital transformation in the automotive industry
Digital Lab opened in Berlin
11
Since the end of May 2016, Porsche Digital GmbH in Lud-
wigsburg has been identifying and developing digital
customer experiences, products, business fields and busi-
ness processes. In doing so, Porsche intends to cement
its position as the leading provider of digital mobility solu-
tions in the premium automotive segment. Particularly in
the areas of connectivity, smart mobility and autonomous
driving, Digital GmbH considers itself an interface between
the Porsche brand and innovators from across the globe.
With this in mind, further locations in Berlin, Silicon Valley
and China are planned for the coming years.
Digital GmbH: Porsche commences digital
innovation offensive
New drive and test centre in Weissach
With the new drive test building, Porsche's research and
development centre is laying important foundations for fac-
ing the challenges posed by future technologies. Following
around two years of construction, the building now houses
all areas of the company's drive development, thereby creat-
ing an efficient network at the Weissach site. In addition to
more than 500 office workstations, digital drive development
can call upon special high-performance workstations to work
on virtual solutions for the drives of tomorrow.
of the plant are the body shop with its new, highly innovative
manufacturing methods, as well as the quality centre that is
exemplary for the Group. Completed after a two-year con-
struction period, this latest expansion makes Leipzig one of
the most innovative and environmentally friendly production
centres in the global automotive industry.
Leipzig site expanded for the Panamera
The second generation of the Panamera is now produced
entirely at the Leipzig site. For this purpose, the company
invested a total of 500 million euro into the fourth expansion
of the Leipzig plant. The production area was increased
to around 60,000 square metres, while the assembly and
infrastructure were also adapted. Among the highlights
Performance Important events
Engine plant in Zuffenhausen put into operation
Porsche has invested around 80 million euro into a modern
production facility for eight-cylinder engines at its Zuffenhausen
headquarters. The innovative engine plant, construction
of which began in 2014, was put into operation in July. On a
surface area of 10,000 square metres, Porsche employees
produce up to 200 eight-cylinder V-engines every day - ini-
tially for the new Panamera Turbo. Production takes place at
the highest quality levels and using the most sophisticated
modern technology. Porsche is also setting new sustainabili-
ty benchmarks with the construction and operation of the
engine plant.
World première of the new Panamera
Porsche unveiled the new Panamera to the public in June at
a spectacular event in Berlin featuring lights, music and
choreography. More than ever before, the completely
redeveloped second generation of the Gran Turismo
combines two opposing characteristics: It offers the
performance of a sportscar and the comfort of a luxury
saloon. The design language of the new Panamera draws
parallels with the Porsche 911. The powerful biturbo engines
of the Gran Turismo are more economical than ever thanks
to the new eight-speed double-clutch transmission (PDK II).
play an important role. These areas will define the exclusive
and sporty mobility of tomorrow. Yet the company will also
continue to focus on its main goal of value-creating growth.
Only by achieving such growth can Porsche make sustain-
able investments in innovative technologies, new products
and the company workforce.
Employees participate in company success
For the successful year 2015, employees at Porsche AG
have received a voluntary bonus of up to EUR 8,911 gross.
There are two components to the bonus: EUR 8,211 was
the defined amount for the positive company result and for
the exceptional performance of staff during the 2015 busi-
ness year. EUR 700 was paid as a special contribution
to the Porsche VarioRente pension scheme or to individual
pension schemes. The bonus for 2015 was paid to around
15,600 employees at Porsche AG, adjusted to their indi-
vidual working hours and length of service at the company.
20 years of environmental certification
Saving energy, avoiding waste, printing paper on both sides
- every Porsche employee can help to save resources and
make a contribution to the ecological sustainability of the
company. In 2016, the level to which Porsche meets its envi-
ronmental duties in operation and production was assessed
by independent TÜV inspectors for the 20th time. As early
as 1996, Porsche was one the first companies in Baden-
Württemberg to introduce an environmental management
system in line with the Eco-Management and Audit Scheme
(EMAS) and was awarded its certification for clearly defined
processes, responsibilities and appropriate implementation.
In terms of core business, PFS was able to develop its busi-
ness volume at the same pace as the Porsche new vehicle
business, while the market position in North America, Europe
and Asia was greatly expanded. A total of around 70,000 new
contracts were concluded worldwide. The financial services
division currently manages over 140,000 leasing and finance
contracts, with a volume of more than 5.9 billion euro fi-
nanced in the Financial Services companies. In addition, over
110,000 customers worldwide value the convenience and
exclusive services offered by the Porsche Card and the insur-
ance offers provided by PFS. Due to the increasingly stringent
legal requirements faced by the financial services business,
the Middle East, USA and Canada. Bentley Financial Services
is the most recent partnership, launching in Australia in au-
tumn 2016 with a brand-specific offering. Individual solutions
are also being developed for Bugatti customers.
as Germany, Italy, Switzerland, France, Russia, Singapore,
brands Bentley and Lamborghini in countries and regions such
Alongside the core products of leasing and finance, the
comprehensive product range includes insurance products,
the Porsche Card and dealer financing. Exclusive financial
services are offered under the brand names Bentley Financial
Services and Lamborghini Financial Services for the Group
AG, PFS regularly examines opportunities to expand its offer-
ing into additional growth markets.
cial services in 16 countries. The PFS Group is represented
by a workforce of 262 employees in the key automotive
markets for the Porsche Group. In collaboration with Porsche
Services (PFS) companies offer innovative, tailor-made finan-
As partners of the retail organisation, Porsche Financial
the sportscar -
this is the theme
Tailor-made financial services
Performance Important events
12
In 2017, a further developed LMPI race car is being de-
ployed, as a completely redesigned race car is being used
in the GTE class: the 911 RSR. The vehicle celebrated its
racing première in January 2017 at the 24 Hours of Daytona.
A total of 21 races are planned for 2017, with Porsche race
cars appearing in the WEC and IMSA series.
Victory at Le Mans and WEC champion again
The 2016 motorsport season could not have gone better
for Porsche. Porsche dominated at the FIA World Endurance
Championship with the 919 Hybrid. Luck was also with
the drivers Romain Dumas, Neel Jani and Marc Lieb, who
achieved Porsche's 18th victory in the 24 Hours of Le Mans
in France - the toughest and most challenging endurance
race in the world and secured their place in the overall
drivers' standings at the end of the WEC. Porsche had
already won the coveted manufacturer's title early on in the
competition. Most notably, the trio of drivers Timo Bernhard,
Brendon Hartley and Mark Webber played their part in this
success with first-place finishes.
With a total volume of 1.1 billion euro, Porsche placed its
largest ever bonded loan in March 2016. This was done to
refinance a bond that expired in February 2016 as well as
various planned investment projects. Around 150 institutional
investors, including banks, pension funds and insurance
companies, participated in the loan. Demand from foreign in-
vestors was particularly high, contributing around 45 per cent
of the total volume. The originally intended volume of the
bond was exceeded by a significant margin.
Bonded loan placed
Porsche initiates integration year for refugees
At the beginning of March 2016, Porsche AG introduced a
comprehensive programme for the integration of refugees.
Ten men and five women aged 16 to 38 and originating
from Eritrea, Syria, Pakistan, Afghanistan, Iran and Iraq were
given the opportunity to qualify for training or direct employ-
ment via a Porsche-developed, six-month integration pro-
gramme. The programme focused on the German language,
basic manual skills and cultural competencies.
In close cooperation with the local authorities of the city of
Stuttgart, Porsche is making its own contribution to forward-
thinking mobility in the region. In September 2016, the
sportscar manufacturer presented its own employee trans-
port concept as a means of air pollution control: In the
case of a fine dust alarm, for example, Porsche employees
can use their company pass for free travel in the greater
Stuttgart region via the Verkehrs- und Tarifverbund Stuttgart
GmbH (VVS). The same also applies for commuting between
the main plant in Zuffenhausen and the external location of
Weilimdorf. On September 1, 2016, Porsche introduced a
permanent ten per cent subsidy for the WS company ticket.
For 2017, the company is also planning a car-sharing and
parking app.
Responsibility for the Stuttgart region
13
In 2016, Porsche enjoyed another record year. This success
is down to its appealing product range and outstanding
customer focus. In every segment where the brand is rep-
resented, Porsche offers the sportiest vehicles - and this
range was expanded in the past year to include further
product highlights.
Dialogue and transparency
daz
J
Key economic figures
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Key figures for environment and energy
100
Key figures for personnel and social matters
102
Further Information
105
The Supervisory Board
Key Figures
106
108
GRI Content Index
110
Porsche AG Group - Brief Overview
About this report
Legal notice
112
85
86
Emission and Consumption Information
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Income Statement
Financial Data
43
44
52
Research and development
57
Sales, Production, Procurement
65
Sales
Production
N82
66
68
72
75
76
78
80
Procurement
Financial Analysis
Net Assets
Financial Position
Results of Operations
90
⌘8888$ b8gསྟྲ 8ཨྰཿཎྜཎྜ ཎྜ
114
92
The Porsche Strategy 2018 provided the foundation for
stability and value-creating growth. The company's new
Strategy 2025 will build on this, marking the dawn of a new
era. This strategy is paving the way for our continuing devel-
opment from a manufacturer of exclusive sportscars to a
provider of exclusive and sporty mobility solutions. Digitali-
sation, electrification and connectivity are challenges that
we face and that we regard as opportunities. The main focus
of our strategic conduct is our aim of transposing the emo-
tional connection that our customers have with Porsche to
a changed behaviour in terms of buying, ownership and use.
For almost 70 years, Porsche has been synonymous with
a unique product and driving experience. We see digitalisation
as a historic opportunity to make Porsche even more inno-
vative and efficient, thereby increasing our profitability - a
chance to secure sustainable workplaces, generate value for
customers and bring about benefits for society and the
environment. Porsche is developing into one of the leading
providers of digital mobility solutions in the premium
segment of the automotive industry.
Record employment, new top figures for deliveries and sales,
an operating result maintained at a high level and, even more
important than sales, one of the best returns that the global
automotive industry has generated - these are the ideal
conditions for our company. Our figures for 2016 epitomise
the power of our name, the enthusiasm for our products,
the expertise of our team and the value of Porsche within the
Volkswagen Group. Diminishing economic growth in crucial
sales regions, concerns over political and economic stability
as well as the ongoing discussion regarding the extent and
responsibility of the diesel controversy within the Volkswagen
Group and the general consequences of this cannot hide the
fact that trust in the Porsche brand remains steadfast all
over the world. The positive development across all relevant
markets shows the dynamic effect of our strategy.
The highlights of the last financial year, namely the introduc-
tion of the mid-engine Boxster and Cayman model lines with
the legendary 718 number, the world première and excep-
tionally successful sales launch of the second generation of
our sporty Panamera luxury saloon and the presentation
of our uncompromising 911 R driving machine symbolise our
promise to combine the traditional Porsche spirit with the
power of new technology. New variants of the 911 and
Panamera, such as the Sport Turismo, as well as the new
Cayenne signify our product philosophy of sporty, modern
mobility in 2017. We are now working on hybridising
our vehicle fleet. At the end of the decade, the first purely
battery-powered Porsche Mission E will completely redefine
the segment of pioneering sports saloons in spectacular
fashion.
Our innovations are driven by the world of motor racing.
That's how we're able to secure our competitive edge on
the roads. Our 18th overall victory in Le Mans and our
second time winning the manufacturer and driver titles in
a row at the sportscar World Endurance Championship (WEC)
demonstrate Porsche's superiority in the endurance testing
of new technologies, which are then incorporated directly
into series production.
Remaining permanently successful means that we must
understand and anticipate the needs and requirements of
our customers, align ourselves with these and have the
relevant technology available. We must continue to develop
the skills and quality of our employees. This even means
that we must keep on learning, reinventing ourselves and
cooperating with both large and small companies. Porsche
Digital GmbH and the Porsche Digital Lab are pioneering
this change in thinking. In essence, this strategy means
innovating at every level and in all sectors of the company.
Industry 4.0, networked mobility, intuitive control concepts
and the vehicle architectures of tomorrow are the key ele-
ments of a digital ecosystem in which a host of new services
and business models are developing. In the medium term,
Porsche plans to generate a double-digit percentage of sales
through digital offerings.
At Porsche, our future is shaped by our past. Only by being
aware of who we were and who we are will we be able
to determine who we want to be. Tradition is our support.
Passion is our drive. Knowledge is our capital.
Never has the legend of Porsche been more alive.
The Executive Board of Porsche AG
6
Performance - Letter from the Executive Board of Porsche AG
7
Important events
Outlook
Business performance
PORSCHE
STUTTGART
FL
FOLLS
PORSCHE
Over the course of the last financial year, Porsche
surpassed itself once again. Our attractive product range
enabled us to exceed the high levels from the previous year.
This was the result of a strong team. Focussing on devel-
oping, manufacturing and selling exclusive, highly emotive
sportscars continues to be worthwhile. As a company,
Porsche is in perfect health.
36
Dear all,
Алонго
94
97
98
115
5
Letter from the Executive Board of Porsche AG
Albrecht Reimold
Production
EM
Mural fluimer
Michael
Michael Steiner
Research and Development
IMPORTANT EVENTS
Lutz Meschke
Deputy Chairman of the Executive Board
Finance and IT
MIMER
вель бини Стильни
Oliver Blume
Chairman of the Executive Board
Deller von
Detlev von Platen
Sales and Marketing
Uwe-Karsten Städter
Procurement
Andreas Haffner
Human Resources
256 5233 312
56000
Sport and society
You have two volumes in front of you:
"Perspective" is intended to inspire, motivate
Economic strength, innovative vehicles, custom-
er focus, environmental protection and employee
responsibility: Porsche sets the highest stand-
ards in all areas and wishes to undergo continu-
ous, long-term improvement.
For the first time, Porsche has published a
combined Annual and Sustainability Report. It
wishes to set an example - that the two sub-
jects belong together - not separately.
Economic success is one of Porsche's distinc-
tive features, as is social compatibility. As a
manufacturer of exclusive, powerful sportscars,
Porsche is committed to achieving greater
acceptance of its company and products around
the world through socially and environmentally
responsible conduct. Responsible actions that
benefit not only the company, but also the envi-
ronment and society, are not only what is
expected by customers, business partners and
investors - they are also crucial for ensuring
competitiveness.
Sustainability in practice is an overall strategic
objective for Porsche. Economic success,
environmental awareness and social responsibil-
ity are not opposing concepts for the company.
On the contrary, they are combined to form an
overall idea that defines the company's attitude.
Performance.
PORSCHE
and encourage you, to confront, challenge and
familiarise you with the topics and theories that
an automotive company such as Porsche faces
in times of an industrial system breakdown.
What significance do origins have for the future?
What about the spirit of enterprise? How much
empathy do leaders need? Where do the ben-
efits of digitalisation begin and when the control
of people? Does "failure culture" mean allowing
failure to happen or making new ideas possible?
2016
Annual and
Performance.
THIS CHART
SCAN
Augmented reality makes the
fascination of Porsche an
even more intense experience.
Simply download the Porsche
Newsroom App from the App
Store or Google Play, select the
augmented reality function in
the menu and look out for the
labels SCAN THIS CHART
and SCAN THIS PAGE. View
the labelled tables, diagrams
and pages on the screen of
your smartphone or tablet -
and bring the content to life.
reality options
how to use the augmented
Sustainability Report
of Porsche AG
SCAN THIS CHART -
For inspiration, consider the information re-
garding the Porsche philosophy within the
triangle of electrification, digitalisation and net-
working, or consider our innovations in vehicle
production, or how Porsche is helping to
develop a region.
The two volumes may be different, but they
have one thing in common: communication on
different levels. That is why some of the arti-
cles offer you the opportunity to experience
"augmented reality". Information regarding this
Employees, Sport and Society
Employees
Our way-management approaches in our spheres of activity
Stakeholder dialogue
Sustainability strategy and sustainability management
Strategy and organisation
Business performance
16
15
The second volume is called "Performance"
and contains all events from the 2016 finan-
cial year. It contains trends, summaries,
explanations, key performance indicators and
documentation regarding Porsche's overall
commitment to sustainability in all facets of
the company.
Outlook
27
Important events
6
Letter from the Executive Board of Porsche AG
can be found on the relevant pages - where
surprises await you.
9
Shaping the future of the sportscar - that is the theme of
the Porsche Strategy 2025. In the 2016 reporting year, the
workforce and management jointly established the new
business strategy for the next decade. At the heart of the
strategy is the future product portfolio. The sportscar of
the future will blend the history and values of the Porsche
brand with innovative technologies, while at the same time
ensuring sustainability. In achieving this, topics such as
electromobility, digitalisation and connectivity will play an
important role. Porsche will assume the task of shaping the
exclusive and dynamic mobility of tomorrow. The company's
main objective is to achieve value-creating growth. Only by
achieving such growth can Porsche make sustainable
investments in innovative technologies, new products and
the company workforce.
Sustainability in the Porsche Strategy 2025
Open and direct communication is an important element of
Porsche's corporate culture and is rooted in the management
guidelines. A number of means are available to employees
for voicing their concerns and utilising transparent communi-
cation paths and information channels. In the area of Porsche
ideas management, for example, 19 employees were recog-
nised in the reporting year for their contributions to the im-
provement of business processes, and were honoured in a
special event. A newly devised ombudsman system enables
(G4-18, G4-19, G4-21, G4-24, G4-26, G4-27)
the stakeholder
dialogue was made
in November in 2016
with the establish-
ment of the Porsche
sustainability
Business partners
Banks
Porsche
Centers
Customers
Porsche
Clubs
Authorities
Authority
Federal Motor
Transport
Politics
Südwestmetall
German vehicle
manufacturers'
association
(VDA)
State and
federal
ministries
Porsche sites
and town
councils at
Municipal
The most important internal and external stakeholders of the company,
as defined on the basis of internal analyses.
(G4-24, G4-25, G4-26, G4-27)
Our Stakeholders
advisory committee.
Regular stakeholder surveys provide systematic information
on the opinions and expectations of relevant stakeholders
with regard to sustainability. In the autumn of 2015, around
2,600 external stakeholders from Germany - including
customers, business partners, representatives of authorities,
associations, unions and non-governmental organisations,
politicians, scientists and sustainability experts - were
invited to participate in an online survey.
(G4-18, G4-19, G4-20, G4-21, G4-22, G4-24, G4-25,
G4-26, G4-27)
Stakeholder survey
In the future, Porsche also intends to become more involved
in relevant sustainability networks at local, national and
international level. The first step was made with company's
joining of the German Environmental Management Association,
Bundesdeutsche Arbeitskreis für umweltbewusstes Manage-
ment e.V. (B.A.U.M.), in the reporting year. By becoming a
member of this association, Porsche has committed itself to
the B.A.U.M. corporate code and the practice of sustainable
and eco-friendly business activities.
Along with the newly established sustainability advisory
committee, Porsche also interacts with external stakeholders
by a number of other means. Since 2015, the "targa" journal
has been published twice a year to inform residents at the
Porsche site in Weissach and the neighbouring Mönsheim
about current developments and special projects. Separate
publications were also started for residents around the
Zuffenhausen and Leipzig plants in 2016. In addition, our
neighbours are notified of relevant measures, such as con-
struction activity at the sites, in the form of project-specific
letters and events. This gives residents the opportunity to
discuss specific issues directly with the experts on-site. In
2016, two informational events with around 550 participants
took place. Moreover, a e-mail address was set up to im-
prove the complaints management process. To intensify the
dialogue between local politicians and the company, Porsche
continues to be involved in the "inter-municipal working
group" initiated in 2015.
Porsche enthrals its customers with unique products and
services. The company wants to further strengthen its ex-
cellent reputation as an outstanding employer and business
partner that assumes responsibility for society and the
environment. Profitability, efficiency and social responsibility
are not mutually exclusive for Porsche.
External stakeholder dialogue
anonymous complaints and reporting of legal violations relat- A central step in
ing to the company. It is also established practice at Porsche
to inform all employees and their elected representatives
about important operational changes both comprehensively
and in a timely manner. Adherence to this corporate practice
is ensured by a number of means, including a Supervisory
Board with equal representation, the works council commit-
tees, regular works meetings and the continuous mainte-
nance of the works agreement database on the Intranet. The
internal stakeholder dialogue, particularly on sustainability
topics, is to be further developed in the future. The develop-
ment and implementation of a corresponding concept is
planned as part of the 2025 corporate strategy.
the expansion of
In the future, sustainability aspects are to be well represented
and promoted in all areas of the company - from develop-
ment to sales. Consequentially, all departmental sub-strate-
gies contain objectives and projects relevant to sustainability.
These include concrete measures for enhancing sustain-
ability in the supply chain, for improving the environmental
compatibility of products throughout their lifecycle and for
the further integration of sustainability in important company
processes, such as risk management. All corresponding
topics are structured according to the four central spheres
of activity for sustainability at Porsche, as well as the addi-
tional work packages "Integration in processes" and "Com-
munication and stakeholder dialogue". Responsibility for the
ongoing definition and measurability of content as well as
the continuous implementation of the cross-sectoral issue
lies with the sustainability team of the "Politics and External
Relations" department in cooperation with the individual
subject managers in the specialist areas.
Inspiring customers with
Porsche Strategy 2025
relating to sustainability
Specifies indicators and lighthouse projects
Specifies the content of sustainability reporting procedures
Chair: Sustainability Office
Representatives from all functions and
employee representatives
30
Performance Sustainability strategy and sustainability management
I
Sustainability Office
Coordinates sustainability issues
Responsible for sustainability
reporting procedures
Departments and specialists
Appoint representatives to the Expert
Committee on Sustainability
Notify the Expert Committee of current issues
Develops strategic objectives and statements
Provide data for the Sustainability Report
STAKEHOLDER DIALOGUE
Stakeholder management
(G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27)
Porsche attributes great importance to the exchange with
relevant stakeholders and its continuous development.
The company therefore invites its stakeholders to engage
in a dialogue on accompanying Porsche on the road to
a sustainable future. Since the 2016 reporting year, this com-
mitment has been bundled under the motto "JoinTheRoute".
Porsche is convinced that solutions for sustainable mobility
can only be identified and implemented on a collaborative
basis. The following figure shows the most important internal
and external stakeholders of the company, as defined on
the basis of internal analyses.
Establishment of the Porsche sustainability
advisory committee
A central step in the expansion of the stakeholder dialogue
was made in November in 2016 with the establishment
of the Porsche sustainability advisory committee. Five inter-
nationally renowned experts from the world of science and
society will support Porsche in its future endeavours to
promote the subject of sustainability within the company:
- Prof. Dr Maximilian Gege, co-founder and chairman of the
German Environmental Management Association (B.A.U.M.)
Business &
customers
- Dr Sonja Peterson, Scientific Director of the Kiel Institute
for the World Economy
- Prof. Dr Lucia A. Reisch, member of the Council for
Sustainable Development and professor at Copenhagen
Business School
-Prof. Dr Ortwin Renn, Scientific Director of the Institute
for Advanced Sustainability Studies e. V. (IASS)
-Prof. Dr Dr Klaus Töpfer, former German Federal Minister
for the Environment, Nature Conservation and Nuclear
Safety and former Executive Director of the United Nations
Environment Programme (UNEP)
The committee will provide inspiration and ideas for the
Executive Board of Porsche AG. In this capacity, they will
meet at least twice a year to report on current environ-
mental and social developments and to discuss possible
sustainable solutions.
Internal stakeholder dialogue
31
(G4-19, G4-20, G4-24, G4-26, G4-27)
(4x annually)
Expert Committee on Sustainability
Excellent employer
and business partner
a unique product
and brand experience
2025
Value-generating
growth
Innovation and
sustainable
business practices
ROS > 15%
Excellent profitability:
Performance - Sustainability strategy and sustainability management
29
29
Sustainability organisation
(G4-18, G4-20)
A clear internal structure with defined roles and responsibili-
ties enables stringent and effective processing of sustain-
ability topics within the company.
The Executive Board of Porsche AG serves as the highest
sustainability committee, which meets at least twice a
year in the form of the "Sustainability Board". As well as deci-
ding the company's basic strategic orientation, the commit-
tee also addresses the implementation of milestone projects
and far-reaching sustainability measures. The sustainability
team of the "Politics and External Relations" department acts
as an interface for all sustainability-related topics within the
company. It is tasked with the coordination of all sustainability
activities, implementation of the sustainability strategy,
reporting and inclusion in the Group-wide sustainability activi-
ties of the Volkswagen Group. In addition, it safeguards
internal and external communication as well as the ongoing
development of the stakeholder dialogue. The "body of
experts on sustainability" is responsible for the alignment
and content of the company's sustainability activities and for
devising corresponding proposals for the Executive Board.
It features a cross-departmental structure and convenes four
times a year. The permanent members of the body of ex-
perts represent sustainability-related areas from all company
departments, within which they function as multipliers for
sustainability issues.
The sustainability organisation
at Porsche
Sustainability Board =
Porsche's Executive Board
(2x annually)
Defines
sustainability focus
Commissions
reports
28
Product
responsibility
In total, the 2016 figure of 237,778 units means that more
new vehicles were sold to customers than ever before in
the history of Porsche. Growth of six per cent was observed
in comparison to 2015. All the major sales regions of China,
Employees &
34
Performance - Sustainability strategy and sustainability management
35
OUR WAY - MANAGEMENT APPROACHES IN OUR
SPHERES OF ACTIVITY
Business & customers
A company lives from its customers. Porsche therefore
attributes utmost importance to maintaining its customer
relationships and endeavours to uphold and enhance the
fascination with the sportscar. In doing so, the company
incorporates not only its customers and interested parties,
but also its employees, suppliers and service providers.
Honest cooperation generates trust, which in turn creates
economic stability and secure workplaces.
To develop good relationships with all stakeholders, interac-
tion and dialogue are of central importance. Since 2014,
Porsche has supplemented classic communication channels
with new means of maintaining customer contact. Apps,
video chats and social media channels allow us to keep cus-
tomers informed in a quick and uncomplicated manner while
also facilitating interaction. It goes without saying that per-
sonal contact remains essential when it comes to ensuring
long-term customer loyalty. Our global customer market
research aims to establish customer requirements and to act
on these needs by incorporating them in the development of
products and services at an early stage. More than 150,000
customer surveys per year allow Porsche to optimise its
products and processes on an ongoing basis. The "forum for
product quality and customer satisfaction" also revolves
around the needs and concerns of customers. The Executive
Board of Porsche AG addresses these issues in close coop-
eration with technicians and representatives from the areas
of quality assurance, customer relations and after sales.
> 150,000
customer surveys per year allow Porsche to optimise its
products and processes on an ongoing basis.
■Medium High
Adherence to the law and legislation is ensured by a compli-
ance organisation based on the company's business model
as well as legally binding processes and measures for
prevention and response. Porsche currently incorporates ten
compliance subject areas in its compliance management
system. Porsche has established a compliance organisation
to prevent legal violations and support employees in up-
holding the law. It consists of the Chief Compliance Officer,
compliance area managers at Porsche AG as well as the
managing directors as local Compliance Officers within the
Group companies.
measures for prevention are defined on a continuous basis
while taking into account the relevant business model,
applicable environmental conditions and the type of the
business partner relationships. Among the main prevention
measures are the adoption and communication of clear
guidelines, the provision of confidential compliance counsel-
ling as well as the regular training and updating of managers
and employees with regard to relevant compliance topics.
The compliance code summarises the most important
principles and expectations relating to lawful, ethical and
sustainable actions within the Porsche Group in a binding
guideline for all managers and employees. It addresses
such matters as handling conflicts of interest, combating
corruption in all its forms, appropriate behaviour inside the
Group and towards customers, business partners and
public officials as well as the assumption of responsibility
for the economy, environment and society. In addition, a
separate directive exists for each compliance topic, such as
handling conflicts of interest, combating corruption, avoiding
cartelisation and preventing money laundering.
Porsche's central Compliance Help Desk serves as a contact
point and advisory service for questions regarding compli-
ance and for receiving information from the managers and
employees of the company. To ensure and promote compli-
ant behaviour, managers and employees are regularly
trained and updated on integrity and compliance in a manner
befitting their roles in the company.
As a main measure of response, an internal and external
point of contact has been established to receive information
regarding any potential legal violations relating to Porsche.
Internally, Porsche managers and employees can report
suspected criminal activity or serious irregularities to the
Compliance Help Desk in a confidential manner. Outside the
company, managers, employees, customers or business
partners of Porsche, public officials or other external parties
can use the ombudsman system to report any legal viola-
tions relating to Porsche in an anonymous fashion. In both
cases, information is followed up with due care and diligence
and any violations identified are responded to appropriately
and in compliance with the relevant employment and co-de-
termination guidelines. This also includes the implementation
of suitable countermeasures and sanctioning of individual
misconduct. The Executive Board of Porsche AG receives
regular reports regarding the status of implementation of the
compliance organisation as well as the preventive and
reactive measures within the Porsche Group.
Porsche also maintains intensive and open dialogue with its
own dealers and suppliers to facilitate the continuous opti-
misation of processes and products. With the implementa-
tion of its "Dealership Sustainability Initiative", Porsche
supports its global branches in the planning, construction and
operation of environmentally sustainable Porsche Centres.
The strict compliance
with the sustainability
requirements defined
in the Volkswagen
Group is essential to
the effective coopera-
tion between Porsche
and its suppliers.
Trustworthy cooperation and common values are also essen-
tial when it comes to the supply chain, particularly in times
of rising sales numbers and the resulting increase in supplied
parts. In this regard, strict compliance with the sustainability
requirements defined in the Volkswagen Group is essential to
the effective cooperation between Porsche and its suppliers.
Within the Volkswagen Group, the concept of "sustainability
in supplier relations" and the corresponding "code of conduct"
ensure that all relevant parties observe and comply with the
high environmental, social and human rights standards in
accordance with the charter of the International Chamber of
Commerce and the OECD guidelines for long-term, sustain-
able development. The relevant core labour laws of the
International Labour Organisation (ILO) serve as the founda-
tion for the sustainability requirements. Suppliers are also
expected to follow the OECD guideline regarding the duty of
care for supporting responsible supply chains for minerals
from conflict and high-risk areas. These sustainability require-
ments form part of the supply contract, violation of which
will result in reviews, representations and, in the worst case,
termination of the business relationship. To exclude the risk
of cooperation that is damaging to business or the company
in general, Porsche conducts an initial risk assessment
of potential new suppliers by subjecting them to a thorough
integrity check. Using questionnaires, supplier country risk
analyses, audits and e-learning modules/training courses,
continuous supplier monitoring and development takes place
throughout the cooperation. In addition, Porsche provides
all internal managers with regular training concerning the
guidelines for sustainability in the supply chain.
36
Porsche's compliance programme comprises a range
of measures for prevention and response. Based on a
systematic, Group-wide risk analysis, needs for action and
Business and Customers
Product Responsibility
Environment and Energy
■Employees and Community
Compliance
Importance for the Company
Health and safety
Long-term economic
stability
Long-term customer relationships
Fuel consumption and
vehicle emissions
Resource consump-
Staff development
Pollutants and waste
during production
tion during production
Energy and emissions
during production
Performance-
based
remuneration
Environmentally
compatible logistics
Responsibility in the supply chain
Equal
opportunities Work-life balance
and equal
treatment
Protecting and preserving nature and biodiversity ■
Contributing toward regional
economic development
Sustainability communication
Social commitment
Corporate co-determination
Performance Sustainability strategy and sustainability management
Porsche
37
Plant tours and presentations on sustainability
in Business and
Association for
Employees' Rights
relationships"
in supplier
"Sustainability
Suppliers'
network
Academia/Research
Schools
Social
Initiatives
Industry (Gesellschaft
Student
Initiatives
NGOS
State sport
associations
Works Council
(IG Metall)
metalworkers
Industrial union of
Trade unions/Associations
society
Environment &
energy
Employees
für Arbeit-
nehmerrecht in der
Wirtschaft e. V.)
Cultural
Organizations
Partner universities
"Christophorus" customer magazine
"targa" residents' journal
Activities in associations/networks and meetings with authorities
Informational events for residents
Press releases and (virtual) press conferences
Porsche Internet presence (newsroom, corporate website)
Sustainability Report 2015
Communication media for external stakeholders 2016
Annual Report 2015
Porsche information boards
Management and employee training courses
Body of experts on sustainability
Works meetings
"Carrera" media for employees (magazine, site newsletters, TV, Intranet)
Introductory session for new employees ("Porsche Warm-Up")
Mood barometer (employee survey)
Communication media for internal stakeholders 2016
For reasons of clarity, the dimension "low" has been omitted
from the matrix shown here. Subjects were not classified as
insignificant or of minimal relevance in either the internal
analysis or the external survey. The importance that Porsche
attributes to the opinion of its stakeholders is highlighted
by the strategic application of the materiality analysis. The
subjects identified in the analysis serve as the basis for
sustainability aspects that are closely linked with other topics
of the corporate strategy. The objective that can be derived
from this is a matter of course for an ambitious company:
Porsche also strives for continuous improvement in the area
of sustainability.
(G4-18, G4-19, G4-20, G4-21, G4-22, G4-24, G4-27)
A materiality analysis evaluates the results of the stakeholder
survey in detail and considers them in terms of the signifi-
cance of individual sustainability topics for the company.
These topics were established on a systematic basis as part
of an internal workshop with employees from sustainability-
related areas of the company. The focus was on the subjects
of "financial effects", "risks", "reputation" and "current social
debates". This analysis served as the basis for the mate-
riality matrix, which was approved by the body of experts on
sustainability. Detailed information on this matrix is provided
in the 2015 Porsche Sustainability Report. The next material-
ity analysis will take place following the stakeholder survey
scheduled for the autumn of 2017.
Materiality analysis
individual Group brands also took part. 15 per cent accept-
ed the invitation. 94 per cent of those surveyed saw no
contradiction in principle between corporate responsibility
and the production of premium sportscars. 91 per cent
consider the development of the company's sustainability
activities as positive. The main challenges facing the
company are the issues of "long-term economic stability",
"long-term customer relations" as well as "fuel consumption
and emissions of vehicles". Further information on the results
can be found in the 2015 Porsche Sustainability Report.
The next stakeholder survey is planned for the autumn of
2017 and will also include two international markets.
Representatives from the Volkswagen Group and the
33
Performance - Sustainability strategy and sustainability management
32
Significance for Stakeholders
70,867 deliveries. At 95,642 vehicles, the Macan was the
top-selling Porsche model.
Materiality Matrix
billion euro
2.21
95,642
Operating profit
The operating profit increased by 14 per cent.
237,778
Research and development costs
R&D costs rose by 3 per cent.
Deliveries of the Macan
The Macan was the best-selling Porsche model
with an increase of 19 per cent.
Deliveries of new vehicles
In total, 6 per cent more Porsche vehicles were
delivered than in the previous year.
Performance Important events
23
Sustainability strategy and sustainability management
Strategy and organisation
222
Stakeholder dialogue
22
Revenue
Porsche
financial year 2016
in figures
Figures relate to Porsche AG Group
1.41
billion euro
Investment in material assets
Investment in material assets (vehicle business)
17.4%
Operating return on sales
Return on sales rose from 15.8 per cent
in the previous year to 17.4 per cent.
22.32 billion euro
27,612
Employees
The number of employees around the
world increased by 13 per cent.
Revenue increased by 4 per cent
over the previous year.
Australia/New Zealand: Record year again
Porsche Cars Australia again exceeded the record achieved
in the previous year. The sportscar manufacturer delivered a
total of 4,867 vehicles (an increase of eight per cent) to
customers in Australia and New Zealand. Macan sales in-
creased by seven per cent to 2,353 units. The Cayenne saw
1,480 deliveries. The 911 model range, with 480 units sold,
also exceeded the high performance recorded during the
previous year by 11 per cent. The mid-engine 718 Boxster
and 718 Cayman sportscars (incl. 981 predecessor models)
achieved an increase of 22 per cent, with deliveries totalling
505 units - a figure that was boosted by the success of
the Cayman GT4 in particular.
Our way-management approaches in our spheres of activity
0
These not only cover the classic sustainability dimensions
of economy, ecology and social matters, but also consider
the role of Porsche as a manufacturing company. The four
spheres of activity are used to structure all business ac-
tivities and projects with sustainability relevance as well as
the company's strategic considerations and objectives.
In day-to-day activities as well as for far-reaching company
decisions, managers and employees alike are guided by
the overarching principles of corporate governance. These
provide a framework for productive and responsible coop-
eration in accordance with the law and contain guidelines for
decision-making and management processes. The internal
compliance code, for example, facilitates the observance
of legal regulations and company-specific guidelines. As part
of the 2025 corporate strategy, sustainability will be estab-
lished as a central component of the compliance code. The
Porsche culture is covered extensively in the management
guidelines, which serve as the foundation for important inter-
nal topics such as employee development, internationality and
cultural diversity, while also governing the specific matters
of sustainability and social responsibility. In addition, numer-
ous operating agreements as well as Group and company
guidelines provide a regulatory framework.
Sustainability principles
(G4-21)
The company's activities with regard to sustainability are
guided by four principles, which are based on the aforemen-
tioned subject areas and were approved at the highest
level by the Executive Board of Porsche AG.
1st Business & customers
Satisfied customers, economic stability, value-creating
growth and socially accepted products are the objectives of
our corporate activities. We combat corruption and embrace
fair competition, respect the observance of internationally
recognised human rights and categorically reject any type of
forced or child labour.
2nd Product responsibility
We develop high-quality, innovative and durable products
offering typical Porsche performance. Quality, environmental
compatibility and safety are continuously optimised
throughout the lifecycle of our vehicles.
3rd Environment & energy
The conservation of natural resources is one of the primary
objectives of our company. The environmental impact of
development and manufacturing processes must be kept to
an absolute minimum. With this in mind, environmental
compatibility and the efficient use of energy are checked on
a continuous basis along the entire value chain, and
improvements made where necessary.
4th Employees & society
People are at the heart of Porsche - this applies both to our
employees as well as to our society, of which we consider our-
selves a part. We accept responsibility for these people and
want to invest in their future. In addition to the continuous
development and qualification of our employees, other impor-
tant aspects of this Porsche culture include such matters
as equal opportunities, diversity and co-determination as well
as the ongoing improvement of our employees' work-life bal-
ance along with fair and performance-based remuneration. As
part of our local and international social commitment in the
areas of "social matters", "education and science", "culture"
and "sport", we initiate our own projects and support external
partners in conducting their own important social activities.
Performance - Sustainability strategy and sustainability management
27
- Employees & society
HE
Porsche has defined four topic areas for structuring and
managing the company's sustainability activities:
The following designations (G4-x) refer to the Global
Reporting Initiative (GRI) standard, Version 4. The sustain-
ability information has been created in accordance with
this standard.
PORSCHE
275/45R20
26
Sustainability spheres of activity
Business &
customers
Product
- Business & customers
responsibility
- Product responsibility
- Environment & energy
Employees &
society
Porsche
Environment &
energy
STRATEGY AND ORGANISATION
Sustainability is of utmost priority to Porsche. Sustainable
action is a central business objective of the Porsche Strategy
2025. As a cross-sectoral issue, sustainability is firmly an-
chored in all areas of the company. Responsibility for this
matter lies directly with the Chairman of the Executive Board.
For Porsche, the assumption of responsibility for people,
the environment and society is a central task of the company.
Porsche also wants to set new benchmarks in this area.
Spheres of activity and general guidelines
(G4-18, G4-20, G4-21)
Middle East, Africa and India: Numerous challenges
With 6,504 vehicles delivered in the Middle East, Africa and
India, Porsche was able to overcome some extreme uncer-
tainties in the region. Drastic fluctuations in exchange rates
in India and South Africa, unclear import regulations, political
instability and war, as well as the continued drop in the oil
price, all negatively impacted business and consumer behav-
iour to a significant extent during the reporting year. With
2,878 deliveries of the Cayenne and 1,192 of the Macan,
Porsche SUV models were responsible for 63 per cent of
sales in the region. The regional office in Dubai manages
the 24 diverse markets with 65 Porsche locations. An addi-
tional showroom in Abu Dhabi and a workshop in Beirut
expanded the regional dealership network during 2016.
increased by 5 per cent.
3.88 billion euro
of new vehicles
189,849
161,982
141,075
237,778
225,121
2012
strongest market in the region, with 3,356 sales recorded.
This result was helped in part by the opening of the Porsche
dealership in Taoyuan - now the largest in the Porsche
Asia-Pacific region.
2016
SCAN
THIS CHART
Performance - Important events
19
Europe
Germany: The success story continues
In the 2016 financial year, with 29,247 delivered vehicles
(previous year: 28,953 units), Porsche enjoyed a sixth
successive record year in its home market. At 8,073 vehi-
cles, the Macan was the top-selling model. The launch
of the Macan GTS played a considerable part in this achieve-
ment. Some 6,985 customers chose the Cayenne - an in-
crease of eight per cent compared with 2015. At 8,015
deliveries, the 911 (incl. 918 Spyder) reconfirms its posi-
tion as undisputed number one in the two-door sportscar
segment in Germany. The new mid-engine 718 Boxster and
718 Cayman sportscars had a delivery figure of 4,245 (incl.
previous 981 model range) - an increase of ten per cent
on the previous year.
Deliveries
18
for the seventh
successive year.
This means Porsche
has surpassed
the previous year's
performance
America
USA: Porsche growing faster than the
automobile market
In the United Sates, Porsche delivered 54,280 vehicles to
customers in the reporting year. This means Porsche has
surpassed the previous year's performance for the seventh
successive year: In the 2016 financial year, growth was
five per cent. The front-runner among Porsche models was
the Macan, with 19,332 vehicles sold. Since August 2016,
the model has been delivered in the USA as a 2.0-litre
turbo variant for the first time.
The Cayenne received great feedback again with 15,383 de-
liveries. Every eighth model delivered to customers was
an S E-Hybrid. The USA is the largest market for the Porsche
911. The introduction of the most recent model generation
was a great success. The engines, boasting enhanced effi-
ciency and performance, enjoyed huge popularity. A total of
8,902 vehicles (incl. 918 Spyder) were delivered. The com-
pletely overhauled 718 Boxster and 718 Cayman mid-engine
sportscars arrived at US dealers in summer and autumn
2016 respectively. The total number of deliveries for Boxster
and Cayman was 6,260. There was great anticipation for the
completely redesigned second generation of the Panamera,
to be introduced in early 2017. Nevertheless, Porsche
was still able to impress 4,403 customers with first-genera-
tion Panamera vehicles in the reporting year. In November
2016, Porsche opened a Porsche Experience Centre and
test track on a 20-hectare site in Los Angeles. It is the
second centre of its kind after Atlanta.
Canada: The record journey continues
In 2016, Porsche Canada achieved a figure of 7,061 new
vehicle deliveries - an increase of ten per cent in compari-
son with the previous year and a new sales record. The
7,000-delivery mark was also reached for the first time. As
in the four years prior, each of the 12 months of 2016 saw
delivery figures higher than those in the corresponding
month of 2015, giving Porsche the longest-standing record
in the Canadian market. At 2,800 vehicles, the Macan over-
took the Cayenne as the top-selling model range. With
946 deliveries (incl. 918 Spyder), the 911 achieved record
sales. A successful market launch was enjoyed by the 718,
with the Boxster in August 2016 and the 718 Cayman in
November 2016. Work is progressing at full speed at the
Porsche Centre North Toronto - the first Porsche-owned
branch in North America, which will also be home to
the new headquarters and training centre for Porsche Cars
Canada Ltd.
Customers in Porsche's home market were keen to accept
the completely redeveloped Panamera, with order quantities
far surpassing expectations. With 1,929 vehicles sold,
Porsche delivered more Panamera vehicles in the year of
the model change than in the previous year.
South America: Stable sales
ation in Central and South America (excluding Brazil) and the
Caribbean. The previous year's level was achieved, with a
total of 3,240 new vehicles delivered to customers. Mexico
alone contributed a 46 per cent share of sales. The Macan
became the highest-volume model range, selling 1,184 vehi-
cles and overtaking the Cayenne's 1,076 deliveries.
Fluctuating currency rates and a drop in the oil price were
characteristic for the region and protectionist measures
made importing vehicles difficult. In spite of this, delivering
409 mid-engine sportscars was a great start for the 718
model line, while the previous generation was also success-
fully discontinued. The 911 impressed over the course
of the second generation rollout with an increase of 45 per
cent, reaching 496 sales. The relevant regional office in
Miami handles a total of 23 markets with 40 Porsche centres
and showrooms.
Brazil: Growth in the second year
In its second year of business operations, the Porsche sub-
sidiary in Brazil significantly exceeded the result from the
previous year. In spite of difficult conditions such as reces-
sion and high import duties, deliveries rose by 38 per cent
to 1,010 units. The greatest volume sold was for the Macan
(352 units), ahead of the Cayenne (341 units). With the arrival
of the new 911 in showrooms, demand increased from the
middle of the year, resulting in 142 sportscars of this type
being delivered by the end of the year - an increase of
137 per cent compared with the previous year. The mid-en-
gine sportscars saw a total of 155 deliveries. The Brazilian
subsidiary with headquarters in São Paulo is currently in
charge of nine Porsche centres, of which three dealerships
in Florianópolis, Campinas and Recife commenced opera-
tions in 2016.
In the United Sates,
Porsche delivered
54,280 vehicles
to customers in the
reporting year.
The reporting year was characterised by a stable sales situ-
The Porsche Centre Böblingen was opened in 2016. Porsche
Deutschland took over the Porsche Centre Stuttgart Airport,
increasing the number of Porsche-owned branches to six out
of a total of 86 Porsche Centres in Germany.
2013 2014 2015
Despite a tense political and economic situation, Porsche
Cars Great Britain Ltd. enjoyed its best year yet with
13,288 customer deliveries.
With a figure of 65,246 deliveries, China - including Hong
Kong - increased sales in the 2016 financial year by 12 per
cent, making it Porsche's highest-volume sales region
worldwide for the second time in a row. The Macan was the
most attractive model range, with vehicle sales of 34,015,
putting it ahead of the Cayenne, which sold 22,204 units.
Some 1,492 units of the 911 (incl. 918 Spyder) were deliv-
ered, with the mid-engine sportscars reaching a figure of
2,416 units sold to customers. Despite the forthcoming
model change at the start of 2017, the Panamera achieved
the sales volume from the previous year (5,119 delivered
vehicles). China is the main consumer of Macan, Cayenne
and Panamera models. A further six Porsche Centres
commenced operations during the reporting year and at the
end of the year, there were a total of 97 Porsche dealers.
+12%
With a figure of 65,246 deliveries, China - including Hong Kong
- increased sales in the 2016 financial year by 12 per cent.
Japan: Continual growth
(G4-18, G4-19, G4-20, G4-21, G4-27)
North America and Europe were able to increase their
deliveries compared with the previous year.
By delivering a total of 6,745 vehicles, Porsche Japan clearly
improved on the previous year's record performance of
6,527 units. A large proportion of these sales was made up
of the Macan model range, for which sales increased by
19 per cent to 2,538 models. Rear- and mid-engine sports-
cars were also able to expand on the strong figures observed
during the previous year. Porsche supplied 1,533 vehicles
from the 718 Boxster and 718 Cayman (incl. 981 predeces-
sor models) ranges, and 1,420 units of the 911.
+9%
In 2016, Porsche South Korea sold 3,270 vehicles to cus-
tomers (previous year: 3,612). This figure includes 766 rear-
and mid-engine sportscars. Macan sales increased by six
per cent to 806 vehicles. With a new location in Seoul, the
dealership network in South Korea continues to grow.
It is set to open in spring 2017. In addition, Asia's second-
biggest Porsche Service Centre opened in Seoul at the
Bundang site.
Asia-Pacific: Previous year's standard matched
In the Asia-Pacific region, managed from Singapore, Porsche
confirmed 5,589 customer deliveries, again matching the
very high level of the previous year (5,583 units). The Macan
played an important role in this success, contributing 2,626
vehicles. Deliveries of the Cayenne increased by ten per cent
to 1,819 new vehicles. The 911 model range was in high
demand, with 590 units delivered. Taiwan remained the
20
20
Performance Important events
21
China: Number one again
Asia
South Korea: Growth in the dealership network
Northern Europe: Significantly increased sales
In Scandinavia, sales increased by one fifth to 2,635 vehicles.
The two-door 911, 718 Boxster and 718 Cayman sportscars
(incl. 981 predecessor models) sold 783 units, substantially
surpassing the figure from 2015 by 62 per cent. This ex-
cellent result is partly down to the buzz around motorsport
brought on by the Carrera Cup Scandinavia. Sweden exhib-
ited exceptionally strong growth once more. In Norway, the
proportion of hybrids in the relevant model ranges was at
74 per cent.
United Kingdom: Record year despite referendum
In 2016, headlines in the United Kingdom were dominated
by the referendum on the country's withdrawal from the
European Union. Despite a tense political and economic
situation, Porsche Cars Great Britain Ltd. enjoyed its best
year yet with 13,288 customer deliveries, an increase of
nine per cent. The most popular model range was the Macan
(4,618 deliveries). Two-door sportscars also experienced
strong growth of 11 per cent: The 4,836 deliveries of the
911 (incl. 918 Spyder), 718 Boxster and 718 Cayman (incl.
981 predecessor models) underline the British enthusiasm
for Porsche rear- and mid-engine sportscars. Even immedi-
ately following the decision to leave the European Union,
the number of orders received remained consistently above
the previous year's level. Porsche's great popularity among
Britons was also evident at the Porsche Experience Centre
Silverstone, which welcomed almost 19,000 visitors.
France: Strong presence in Paris and Le Mans
In autumn 2016, around a million car enthusiasts attended
the Paris Motor Show. One of the show highlights was the
presentation of the new Panamera. Porsche also made
motorsport history once again in France: In the 24 Hours of
Le Mans, the Porsche works team emerged overall victors
for the 18th time. In terms of sales, the Macan remained
ahead of the Cayenne as the biggest-selling model range in
France. In total, deliveries increased by 12 per cent to
5,592, thereby setting a new record.
Belgium/Netherlands/Luxembourg:
Hybrid models in demand
Italy: Automobile market continues to grow
Despite the ongoing political and economic uncertainty in
the country, the Italian automobile market is growing at a
pace. This development can be seen in the deliveries
of Porsche models, with an increase of seven per cent to
5,162 units. The 911 gained a proportion of more than
50 per cent in its market segment. Other 2016 milestones
were the expansion of the Porsche Centre Rome South and
the Porsche Service Centre Catania into Porsche Classic
partners. This means that there are now four Porsche
Classic partners in Italy.
Spain/Portugal: Investment in the growth market
In a similar way to Italy, the passenger car market in Spain
and Portugal grew substantially. Porsche deliveries increased
With vehicle deliveries reaching 5,372 in Belgium, the
Netherlands and Luxembourg, Porsche surpassed the high
number of 4,996 units that was recorded in the previous
year. The 911 models are particularly popular. At 564 units,
the Dutch made up around 30 per cent of the total volume
of 1,889 vehicles. This puts them virtually neck and neck
with the strongest model range: the Macan. In Belgium,
Porsche delivered 2,896 vehicles, representing an increase
of 20 per cent. Luxembourg also observed a double-digit
increase to 587 units. With a mixed share of 37 per cent for
the Panamera and 62 per cent for the Cayenne, the plug-in
hybrid models remained highly popular.
Switzerland: High proportion of Turbo and GT models
In Switzerland, Porsche was once again able to improve
slightly on the previous year's record, delivering 3,970 vehi-
cles to customers. Demand for 911 Turbo and GT models
was particularly strong (43 per cent). Porsche is continuing
to focus on professionalising and optimising the dealership
network. This includes opening Porsche Centres in Upper
Lake Zurich and Locarno.
Austria: Two-door models popular
With 1,392 deliveries, Austria surpassed the previous year -
which itself recorded strong sales - by two per cent. Two-
door sportscars were especially successful, selling 538 units
- an exceptional growth level of 80 per cent. The particu-
larly sporty 911 GT3 RS and Cayman GT4 and the new
718 Boxster were the main drivers behind this achievement.
Central and Eastern Europe: A 12 per cent increase
In a diverse market environment featuring geopolitical risks,
Porsche improved on the previous year's result by 12 per
cent, delivering 5,550 units to customers. The best-selling
Macan and Cayenne models achieved 2,540 and 1,847
deliveries respectively. A total of 845 vehicles were delivered
to customers from the 911, 718 Boxster and 718 Cayman
model ranges (incl. 981 predecessor models). In the report-
ing year, the Porsche Driving Centre in Istanbul offered
more than 1,500 visitors the perfect environment in which
to test every Porsche model. The opening of new Porsche
Centres in Lviv (Ukraine), Herzliya (Israel), Istanbul (Turkey),
Skopje (Macedonia) and Almaty (Kazakhstan) further sup-
ports the brand presence in additional parts of the region.
by eight per cent to 2,797 units. Backed by these success-
es, Porsche is reinforcing its presence in the Spanish market.
One example of this approach is the new build of the
Porsche-owned centre at the Madrid North site. In Barcelona
too, Porsche strengthened its market presence with the
opening of a new city showroom.
Russia: Stability despite recession
Despite the ongoing difficult market situation and another
substantial deterioration in the Russian passenger car
market, Porsche stabilised its position and delivered 4,961
units, roughly matching the previous year's 5,290. The
top-selling model ranges were the Cayenne (2,606 deliver-
ies) and the Macan (1,730). Regular driving experience
events held at the Porsche Driving Experience Centre at the
Moscow Raceway are reinforcing the brand presence in the
Russian market.
Secure workplaces are of utmost priority at Porsche. This
also applies to safety in the workplace and employee protec-
tion. An organised and structured system for occupational
health and safety ensures targeted and consistent procedures
along with the implementation of legal provisions. This system
helps to prevent accidents at work, occupational illnesses
and work-related health hazards. The central processes
are standardised and regulated by the Group guideline on
"Occupational safety". The latter represents an important
element of the company's compliance management system
and is valid for all employees. The managers ensure that
Porsche
Further information regarding Porsche's activities in the
various areas can be found on the Internet page for the
Annual and Sustainability Report:
www.newsroom.porsche.com/reports
For Porsche, placing a focus on people also means making
a sustainable contribution to society. As an international
company with a local presence, Porsche is therefore involved
in a wide range of projects and initiatives in the areas of
social affairs, education and science, culture, the environment
and sport. Examples are the youth sport programme "Turbo
for Talents", education partnerships with local schools and
colleges or the support of social projects at the company
sites and beyond.
their employees are familiar with the specifications of this
guideline and comply with its provisions. Specialists in
occupational safety are available to all employees in an
advisory capacity.
To be well prepared for the challenges facing the automo-
tive industry, Porsche identifies and retains qualified and
enthusiastic professionals. This also includes the continuous
development of the company's training programmes. The
Porsche trainee programme raises the attractiveness of
the company to college and university graduates. Over the
course of their professional life, employees also benefit from
a wide range of programmes for individual development.
Personnel training and development is a central component
of the Porsche management guidelines and an instrument
of the strategic management and planning processes. Indi-
vidual training requirements are identified during annual
employee appraisals, and relevant development opportunities
established on this basis. All training programmes are con-
tinuously evaluated and optimised by means of a standard-
ised feedback process. As a modern employer, Porsche also
offers a range of practical, accessible services to allow
employees to find the perfect work-life balance. The regula-
tory package "labour market of the future" contains corres-
ponding measures, such as life-phase-oriented organisation
of working hours, "home office" facilities and Porsche care
time. The company pension scheme and regulated semi-
retirement allow our older employees to make a smooth
transition into retirement at fair conditions.
The special Porsche culture also includes continuous dia-
logue, open and direct communication as well as active
co-determination. These aspects are rooted in the Porsche
management guidelines as central elements of our corpo-
rate principles. The personnel department and the works
council are traditionally very closely linked at Porsche. This
applies to all subject areas that are of relevance to our
employees. Respectful and honest interaction between com-
pany management and the employees or their representa-
tives constitutes an important element of the communication
culture practised at Porsche. Employees have a number of
means of contacting committees or decision-making bodies
- either openly or confidentially via special channels - with
their suggestions, problems or complaints. In return, compa-
ny management updates the workforce on developments at
the company via various channels and on a continuous,
transparent basis.
sustainability 2016
Equal treatment of all employees is also of central importance
to Porsche. The company views equal opportunities as a
means for all individuals to take advantage of personal devel-
opment measures so that they can educate and further them-
selves in line with their own individual potential - regardless
of their gender, ethnic origin or age. Of particular importance
in the working environment is the ongoing increase in the
proportion of women at all levels. With this in mind, the com-
pany has implemented special qualification and training
opportunities, facilities for forewomen to exchange experi-
ences as well as mentoring programmes.
in figures
Porsche is breaking new ground in Cape Town, South Africa.
Together with Don Bosco Mondo e.V. and the South African
Porsche importer LSM Distributor, the company will train
young men and women to become service mechatronics
engineers from 2017 onwards. Another important partner is
the Don Bosco Salesian Institute Youth Project, supported by
the Catholic order of the Salesians. Don Bosco is active in
youth work all around the world, predominantly in socially
deprived areas, and is now a trusted cooperation partner of
Porsche. Over three academic years, 75 young people
from socially disadvantaged backgrounds will be given the
opportunity to take part in the newly created vocational
training programme in Cape Town. Porsche will be consciously
training individuals to meet its own needs. In the next three
years, the company will develop the basis for establishing
the profession of service mechatronics engineer in South
Africa. Porsche is developing the necessary syllabuses and
examination regulations, as well as training tutors and
providing the Don Bosco Institute in Cape Town with premises
for theoretical and practical training.
-2,254t
100%
Proportion of new suppliers
assessed on the basis of
ecological criteria
Savings in carbon dioxide emissions
achieved through efficiency
measures in Zuffenhausen, Leipzig
and Sachsenheim
Research and development
55
The collaboration with the Salesians of Don Bosco has en-
joyed success over many years. Since 2008, Don Bosco in
the Philippines has been working with the local Porsche
importer to train young men and women from socially disad-
vantaged backgrounds as service mechatronics engineers.
In the capital Manila, the young people are mainly prepared
for subsequent work abroad at importers in the Middle East.
The income allows them and their families to enjoy a con-
siderably higher standard of living. In 2015, Volkswagen and
Audi joined the pilot project in Manila. Some 120 young
Filipinos are now prepared for a service job every year.
Pilot project at the Cape of Good Hope
With 27,612 employees at the end of 2016, Porsche
has reached a new record.
centre where people from all backgrounds, cultures and
ages can come together. As well as art, culture and social
assistance, it puts on events for the homeless and other
people in need.
Figures relate to Porsche AG
and Porsche Leipzig GmbH
+13%
20
Employees & society
Performance - Employees, Sport and Society
Product responsibility
More than any other automotive manufacture, Porsche's
brand and products stand for dynamic performance, power
and exclusivity for the fascination with individual mobility.
Yet society and, consequently, the demands that people place
on high-performance sportscars are changing: Resources are
becoming ever scarcer, emission regulations ever stricter
and conurbations are crying out for new, intelligent mobility
concepts. Fuel efficiency, reduced exhaust emissions, light-
weight construction and reusability of materials are becoming
fundamental characteristics of a modern vehicle architec-
ture. Electrification, digitalisation and connectivity are
bringing about systematic change in the automotive sector
and establishing themselves as essential elements of a
company's competitiveness. Porsche is tackling these chal-
lenges in a resolute manner and is endeavouring to build
sportscars that combine performance with efficiency and
exclusivity with social acceptance. The fuel consumption and
emissions of the vehicles are of central importance to the
company and its stakeholders.
Internal working groups have been set up to answer the
questions raised by climate change and scarcity of resources
as well as to present potential solutions and implement them
as quickly as possible. First and foremost, the company
is addressing the challenges on the basis of two typical
Porsche principles: performance and efficiency. Developers
are able to achieve high vehicle performance with compara-
tively low consumption values thanks to sophisticated, well-
thought-out concepts, best possible efficiency, minimisation
of energy losses and the use of intelligent technologies.
Concrete product ecology measures are being devised in
all areas.
With regard to lightweight construction, Porsche has been
testing technologies and materials for many years. A low
vehicle weight results in reduced fuel consumption. Despite
the weight gain attributable to fuel-efficient turbo engines
and additional equipment, the powerful S model of the cur-
rent 911 is just 25 kg heavier than its predecessor. Porsche
started its downsizing campaign with the company's front-
engined vehicles, before moving on to the flat engines. Twin
turbocharging and other technologies greatly increase the
efficiency of the engines, resulting in higher performance
figures with lower displacement and reduced fuel consump-
tion. Direct fuel injection, coasting and assistance systems
such as "InnoDrive" enable further optimisation of vehicle
fuel consumption. In addition to consumption optimisation,
the reduction of emissions represents a particularly big
challenge, and modern exhaust after-treatment systems
are used to reduce emissions.
In the world of low-emission hybrid vehicles, Porsche has
achieved a special status by becoming the world's first
manufacturer to offer three plug-in hybrids as standard in
its premium class range. With the Mission E, Porsche will
38
launch the first purely electrically powered sportscar from
Zuffenhausen by the end of the decade.
Durability, workmanship, low-wear materials and recycling
are other topics that are of great importance to Porsche.
More than two thirds of all Porsche vehicles ever built
are still used on the road today. In the case of the materials,
large plastic components are labelled with their material
designation to facilitate later recycling. Recycled plastics
are used instead of new materials, provided that they meet
the exacting technical requirements. With Porsche's own
"PN 1002" standard, the company has defined both legal
and internal requirements for recycling-compatible product
development and construction. In addition to other existing
standards, it aims to achieve maximum environmental
compatibility in conjunction with suppliers and their sub-sup-
pliers. A Porsche is up to 95 per cent recoverable and up
to 85 per cent recyclable.
With 27,612 employees at the end of 2016, Porsche has
reached a new record - never before have so many people
worked for the company. To continue the development of
the unique Porsche culture in the future despite the work-
force growth, we have made our attractiveness as an
employer a central focus of both the 2025 corporate strate-
gy and the human resource strategy. For us at Porsche,
people are a focal point. For every single employee, Porsche
wishes to be an outstanding employer offering excellent and
safe working conditions and opportunities for personal
development. The main spheres of activity are entrenched in
the management guidelines, the compliance code and the
Porsche business rules. Our "Fit for the Future" programme,
which was jointly approved by the Executive Board and the
general works council in 2015, aims to increase productivity,
flexibility and efficiency, all the while maintaining social
standards and providing job security up to mid-2020.
Environment & energy
and across all levels. For Porsche, dedicated environmental
protection and careful use of natural resources are more than
just duties - they are important company objectives. In defin-
ing the main aspects of the above, the stakeholders and
the company have identified the subject areas of energy and
emissions, protection and conservation of nature and biodi-
versity as well as the correct handling
of pollutants and waste.
For many years now, Porsche has practised its own environ-
mental policy with clear and binding guidelines, which also
form part of the "environment & energy" sustainability prin-
ciple. Environmental and energy-related aspects must be
taken into consideration for all decisions and by all relevant
parties. All activities along the entire value chain are ana-
lysed with regard to their ecological impact in order to mini-
mise harmful environmental influences where possible. This
is enabled, among other things, by environmental manage-
ment systems. They ensure that specific goals and pro-
grammes are in place and rigorously implemented at all pro-
duction sites. These efforts are supplemented by the Group
guideline on "environmental management". It aims to estab-
lish standardised principles of environmental protection
throughout the Group, to conserve resources and to support
international efforts to solve global environmental issues.
Responsibility for the above, as well as for the systematic
implementation of corresponding measures, lies with the
Member of the Executive Board for Production and Logistics.
As part of the Porsche Strategy 2025, the relevant depart-
mental strategy features a separate strategy field dedicated
to the planning and implementation of sustainable measures
in production. This company division also includes central
environmental and energy management. It ensures that every
employee is aware of the environmental impact of his work
and endeavours to minimise it.
Porsche has based its internal regulations on the interna-
tional environmental management standard ISO 14001, the
standard for energy management ISO 50001 as well as
EMAS (Eco-Management and Audit Scheme), a voluntary
community scheme of the European Union for environmental
management and environmental audits. As early as 1996,
the Zuffenhausen site had its environmental management
system validated according to EMAS, and later became the
first plant in the global automotive industry to meet the
ISO 50001 standard for energy management. Since then,
Porsche Leipzig GmbH, the central parts warehouse in
Sachsenheim as well as the company sites in Ludwigsburg,
Hemmingen, Rutesheim, Asperg and Mönsheim have all
been certified according to the standard. The Porsche
Performance Sustainability strategy and sustainability management
hazard response organisation is also in place to ensure early
identification, assessment and rectification of damage cases
involving environmentally hazardous substances. Porsche
checks internal compliance with environmental and energy.
laws as part of annual system and process audits (comp-
liance audits). External environmental and energy auditors
are utilised for these audits, which are subject to very high
standards. A site balance sheet method enables the as-
sessment of the main environmental aspects based on data
and key figures, as well as a grid for classification into
high, medium or low environmental relevance. Based on this
assessment, targeted measures are implemented to reduce
the environmental impact and are integrated in a target
identification process. With the Porsche Environment and
Energy Cockpit (PUEC), the company has established a
cross-departmental committee to conduct regular evalua-
tions of the set targets and to establish necessary measures.
Open and transparent dialogue with all stakeholders is an
important success factor, particularly in the area of environ-
mental and energy management. On this basis, employees,
service providers and suppliers, customers and the public
are updated on relevant topics on a regular basis.
Balanced environmental performance requires measures and
initiatives in a number of subject areas. Careful and economi-
cal use of water, for example, is a particularly important
aspect. By means of circulation systems and multiple reuse,
Porsche utilises this valuable resource as efficiently as possi-
ble. Another focus is on the handling of contaminated waste
water from the company's production facilities. Regularly
updated, decentralised treatment plants greatly undercut the
limit values for water pollution levels. Waste prevention,
low-waste technologies and sustainable disposal solutions
are central aspects of the waste management concept
that is practised both internally and by our suppliers based
on the resource regulation for "environmental protection".
The preservation of biodiversity represents an important
contribution to the long-term protection of our nature and
countryside, whereby conservation work at all sites must
take into consideration the local circumstances typical of the
regional countryside. This is of ever increasing significance,
particularly in the context of the ongoing expansion of our
sites. Porsche's construction management attributes great
importance to the sustainable design of buildings, plants
and workplaces.
Porsche also has very specific requirements when it comes
to logistics. By means of efficient and continuous use of
environmentally friendly modes of transport, Porsche is
reducing its emissions and impact on the environment. All
relevant processes are certified according to DIN ISO 9001
and ISO 14001.
39
Shaping the mobility of the future in an environmentally friendly
manner requires new entrepreneurial thinking and sustainable
approaches to business activities. Porsche is aware of this
challenge and ready to face it head-on. Environmentally con-
scious and energy-efficient activity is embraced at all sites
kWh
In 2016, Porsche Leipzig also organised a fund-raising
football tournament to benefit three charitable institutions
in Leipzig: "Paulis Momente hilft", "Pavillon der Hoffnung"
and the Bärenherz children's hospice. The "Paulis Momente
hilft" association and the Bärenherz children's hospice
support severely ill children and young people, as well as
their families. The "Pavillon der Hoffnung" is a community
The "Kinder- und Jugendhospiz Stuttgart" - a hospice for
children and young people in Stuttgart - is another institu-
tion that receives support from Porsche. The hospice helps
people with terminal or life-limiting illnesses through their
final days by providing both medical and spiritual support.
The inpatient hospice for children and young people is cur-
rently under construction and is expected to open in 2017.
Under the Porsche Strategy 2025, targeted promotion of
talent is a core element of the personnel development and
skills strategy.
Following the successful completion of the second Porsche
Trainee Programme, the programme started for the third
time in November 2016 with ten participants. The 12-month
programme for young academic talent provides an opportunity
to learn about working processes across departmental and
divisional boundaries. It includes project and practical work
in Germany and abroad.
Trainee Programme
Skills acquisition starts from day one at Porsche: "Porsche
Warm Up" is the induction programme for new employees
and managers. The two-day training programme familiarises
participants with fundamental issues such as sustainability,
health management and the activities of the works council. In
2016, 1,934 people took part in Porsche Warm Up.
Porsche Warm Up
New personnel development concepts take a more system-
atic approach to linking requirements arising from the Porsche
Strategy 2025 with constant improvement in employee
skills. Practical relevance and effective knowledge transfer
are particularly important. Cross-departmental and interna-
tional groups promote the best possible exchange
of experience and networked working.
Work and the strategic approach to personnel development
are being shaped by digitalisation and demographic change.
It is absolutely essential that employees' skills are consist-
ently aligned with company and departmental strategies.
on systematic and future-oriented development of the nec-
essary skills, and prospects and routes for professional
enhancement at all levels and across all stages of employees'
careers. This is supported by means of a high-quality, exten-
sive range of training options and tailor-made personnel
development programmes.
Employee development
Employee and manager development at Porsche supports
life-long learning for all groups of workers. The focus is
Employees who rely on their cars to get to work can now
easily pick up passengers with Porsche. A car-sharing app
puts together car-sharing groups for travel to and from work
and business trips. The app collates requests and creates
individual timetables. Car-sharing reduces the amount of com-
muter traffic and relieves the burden on site infrastructure.
Porsche wants to make it easier for its employees to switch
to the bus and train, and not only during pollution warnings.
The specific improvements include a more attractive connec-
tion to the S-Bahn station at the Zuffenhausen headquarters.
This year, a new track underpass will open near Neuwirthaus
station, to shorten the routes on site - and to the station.
Porsche has been committed to increasing the attractive-
ness of local public transport for many years. The redesign
of the S-Bahn underpass at the Porsche Museum ultimately
stems from a Porsche initiative. The costs for the complex
building measure were shared equally between Deutsche
Bahn, Stuttgart City and Porsche.
Porsche has also been subsidising annual travel passes for
the local public transport network by ten per cent since
September 1, 2016. Employees who live outside the local
network are also benefiting from improved conditions. Cur-
rently DB Job Ticket holders pay for ten months, but can
travel for twelve. Porsche employees now also receive a
further discount off the annual price.
Porsche is synonymous with cutting-edge, environmentally
conscious mobility concepts. Through a host of measures,
the company is also helping to prevent air pollution. As of
last year, employees living in the Greater Stuttgart area can
use local public transport free of charge during a Fein-
staubalarm pollution warning. The company ID card serves
as a travel ticket. The plant ID can also be used as a bus
or train ticket when commuting between the Zuffenhausen
headquarters and the Weilimdorf site.
Free travel with plant ID
On the basis of general selection criteria, many applicants
have little prospect of a training place. But Porsche is in
no way abandoning these applicants. The aim of the founda-
tion qualification - known as the preparatory year - is to
increase their chances on the training market. Since 2012,
42 young adults have completed the preparatory year, with
39 of them qualifying for a subsequent apprenticeship at
Porsche. Following this success, the preparatory year has
now been expanded: 20 participants joined in 2016, which
is nine more than the previous year.
Digitalisation which continues apace in all areas of auto-
motive engineering, electromobility and smart mobility - is
leading to a significant focus on these topics in vocational
training. All trainees must be able to keep up with techno-
logical progress. For this reason, they receive intensive
preparation for new developments.
Against the background of plant expansion and the upcom-
ing production of the Mission E, Porsche is increasing the
number of technical training places from 106 to 156. Along-
side traditional occupations in the automotive industry,
approximately half the extra training places will be for electro-
mechanical engineers in vehicle system and high-voltage
technology and electrical engineers for industrial technology.
Porsche vocational training forms the basis, with a range of
ten technical and commercial occupations that require formal
training, and seven programmes of study in collaboration
with the Baden-Württemberg Cooperative State University
(DHBW). In the last financial year, a total of 220 young people
began their training at Porsche AG in one of the occupations
or programmes offered.
Needs-based training that focuses on future requirements,
on-going skills acquisition, and options and routes for internal
development are cornerstones of Porsche's HR policy.
Porsche offers an extensive programme - starting with voca-
tional training right through to training for top management.
Training and education
45
Encouraging new talent at Porsche
Performance - Employees, Sport and Society
The skills programme to specifically prepare talented em-
ployees for management roles is based on the content and
framework conditions of Strategy 2025: digitalisation,
ability to innovate, internationalisation and life-long learning.
242 employees from Germany and abroad took part in the
eighth running of the programme in 2016. The total number
of employees who have successfully completed the pro-
gramme rose to 750. The next round is due to start in 2017.
A pilot project in this area was still in its infancy in 2015;
following very good results, the department-specific develop-
ment programmes for talented employees in production
are now part of regular operations. The aim is to universally
develop personal and technical skills among production
employees who have between one and five years' professional
experience. The programmes are set to be extended to
other areas of the company in the future.
Within the space of just four years, Porsche has increased
the proportion of women in management by more than
70 per cent. Measurable, binding equal opportunities are
part of target agreements for all managers at Porsche.
Upskilling and further training measures such as workshops,
seminars and mentoring options are available in connection
with this. At the start of the 2016 training year, the number
of study places for vocational training (dual courses of study
with the Baden-Württemberg Cooperative State University
(DHBW)) was increased from 34 to 50. The aim is clear here
too: to increase the proportion of female engineers and
business data processing specialists. At the end of the year
under review, women accounted for 39.1 per cent of DHBW
students at Porsche - 5 per cent more than in 2015. One
reason for this is that prospective female candidates are
being addressed on a personal level, particularly at second-
ary schools. A DHBW info day was also held at the Porsche
training centre, under the banner "Experience technology",
to get young women interested in studying technical
subjects. A 50 per cent quota was achieved when recruiting
for 2017 students.
Within the space of just four years, Porsche has increased
the proportion of women in management by more than
70 per cent.
+70%
At Porsche, equal opportunities means that employees and
managers are encouraged to progress in their professional
development as far as possible, given their respective
abilities and regardless of gender or origin. More diversity
also means a higher proportion of women at all levels
of the company. This is an important action area in which
Porsche is continually working on improvements.
Equal opportunities and diversity
Porsche AG uses a range of media to inform employees
about the many different offers that are available. The
works council is also a comprehensive platform for informa-
tion and discussion, holding three works meetings a year
at the individual Porsche sites in Germany. Overall, co-deter-
mination is highly valued at Porsche and is a key pillar for
company success.
Co-determination
Porsche is committed to flexible working - in terms of loca-
tion and times. The options range from home-office working
and flexitime aligned to the employee's current phase of life,
through to voluntary periods off in the form of sabbaticals.
Job sharing in leadership roles has also proven to be
successful in a pilot project. These options enable workers
to juggle work and family better. Our commitment in this
area is being noticed: Porsche was named one of the "best
companies for families" in the year under review - a cam-
paign led by "Eltern" magazine for parents.
Porsche places great importance on work-life balance.
Six cooperation partners make sure that there are sufficient
childcare places in nurseries near the sites. As in the previous
year, children of employees enjoyed a holiday club during
the school summer holidays at the Zuffenhausen and Weissach
sites, which included a shuttle service. Childcare was also
available during all other holiday periods, with the exception
of Christmas.
Work-life balance
In the year under review, the sentiment barometer was again
used to conduct a company-wide employee survey at
Porsche AG and in the German subsidiaries. In 2016, more
than 17,000 employees took part in the latest company-
wide sentiment barometer. Employees were asked their
opinion on topics such as cooperation with colleagues and
superiors, quality of work and provision of information on
current developments at Porsche. After the results were
analysed, they were discussed in all areas of the company.
Managers and employees worked together to identify
potential for improvement and defined a number of specific
measures; for example, to improve processes or working
conditions.
Porsche sentiment barometer
In 2016, the key elements of strategic skills management
were the expansion and targeted anchoring of skills acquisi-
tion in the product creation process. Employees are being
prepared for the new tasks they will be required to complete
in the future. This will help considerably to reach the goals
set out in the Porsche Strategy 2025.
Skills management
47
Performance - Employees, Sport and Society
46
The Porsche Management Programme, which was created
in close collaboration with the European Business School
(EBS), focuses on promoting general management skills,
expanding a shared understanding of leadership and building
networks within the Group. The sixth Porsche Management
Programme was completed in June 2016 with 53 partici-
pants from Porsche AG and the national and international
subsidiaries. A total of 357 managers have already taken
part in the programme.
The Porsche Advanced Management Programme was
developed in collaboration with the Paris École des hautes
études commerciales (HEC). It concentrates on leadership
skills in a global and volatile environment. 19 top manag-
ers from Porsche AG and global subsidiaries of the Porsche
Group successfully completed the programme in
September 2016.
The training on offer at management level in the Porsche
Group includes two high-quality modular programmes, devel-
oped in collaboration with leading international business
schools and tailored to current and future requirements for
Porsche management.
Programmes at management level
Development programmes in production
In 2016, young women accounted for 35 per cent of training
places on the technical/commercial training programme,
more than three times the level just a few years before. The
aim is for an even greater proportion.
44
22,401
41
Performance - Sustainability strategy and sustainability management
40
Investment in environmental
protection at the Zuffenhausen/
Weissach sites
43.57 milion euro
Reduced consumption in the Panamera 4 E-Hybrid
(compared with the Panamera S E-Hybrid)
(IN NEDC)
-19%
approx.
Total donations in 2016
million euro
5.0 mill
(compared to previous year)
Reduction in injury rate
-8.5%
Global customer surveys per year
Number of apprentices
655
>150,000
- 105t
Annual savings in carbon dioxide
emissions thanks to the photovoltaic
system on the new engine plant in
Zuffenhausen
Number of years Porsche has
held environmental management
certification
Employees, Sport and Society
2012 2013 2014 2015 2016
Employees
EMPLOYEES
24,481
27,612
19,456
17,502
at the Porsche AG Group
Employee development
a year.
"Ferry Porsche
Prize": 234 young
people received the
coveted award, with
six also enjoying
scholarships for
Awarded for the 15th time, the "Ferry Porsche Prize" recog-
nised the top A-level students in their year from Baden-Würt-
temberg in the core subjects of mathematics, physics and
technology. 234 young people received the coveted award,
with six also enjoying scholarships for a year. The draw
for the six scholarships took place at the award ceremony.
that was held in the Porsche Development Centre.
In the year under review, Porsche continued to focus on
partnerships with key organisations to encourage young
talent. These included Formula Student Germany, an interna-
tional design competition under the patronage of the Asso-
ciation of German Engineers, the Foundation of German
Business, and Femtec, a programme established at TU Berlin
that aims to encourage women to study science and engi-
neering. Providing 42 scholarships, Porsche is also involved
in the Deutschlandstipendium initiative of the German Federal
Ministry of Education and Research and in the "Porsche
Automotive Campus" (PAC) scholarship programme at
Nürtingen-Geislingen University.
The attractiveness of Porsche as an employer is also evident
from applicant numbers. In 2016, the Porsche Group received
more than 166,000 applications, which is a new record.
800,000
The basis for successful HR work is Porsche's continued
position as an attractive employer and its support for a
number of initiatives to encourage young talent.
Attractiveness as an employer and working
with young talent
things, these simplify inclusion in the core Porsche workforce
and ensure equal pay. New rules governing the number of
agency workers and the maximum duration for which they
can be deployed have been adopted on a departmental basis
by means of the "General works council agreement laying
down conditions for using agency/temporary workers".
With the Mission E, Porsche is also continuing the agree-
ments made for the "labour market of the future". The focus
here is on further increases in flexibility and productivity as
well as a better work-life balance. The fair framework condi-
tions that are already in place at Porsche will also apply
to agency and temporary workers in the future. Among other
At Porsche, innovative technologies are not only being used
in vehicles. They are also opening up new possibilities in
different areas of the company. Extensive integration of man
and machine is just around the corner for production pro-
cesses, for example. Development of the smart factory is
under way. Priority is being given to digitalisation, the safe,
ergonomic design of workstations and doing sustainable,
resource-saving business.
The entire company is pulling together to reach its ambitious
goals in this area. Through the Zukunftsbeitrag or "future
contribution", all employees who are subject to collective
agreements, managers and executives are investing in
Porsche's fitness for the future and in the company's entry
into the alternative powertrain engineering market. For
example, from increases under the regional collective agree-
ment between 2016 and 2025, collectively organised em-
ployees will pay 0.25 per cent into the future contribution.
From salary increases over the same period, managers at
Porsche AG will play their own part by contributing 0.5 per
cent. Starting in 2026, Porsche's pay scale tables will
be adjusted to compensate for the wage increases that
were not passed on to employees.
With the Mission E, Porsche is looking towards the future
and opening doors for new, innovative technologies and an
additional vehicle model. More than 1,400 new jobs are
being created at the Zuffenhausen and Weissach sites, and
existing jobs secured. At the Zuffenhausen headquarters
alone, Porsche is investing an additional 700 million euro in
the Mission E.
Securing of sites and Mission E project for the future
Following arrangements to secure sites in 2015, the Exec-
utive Board and the general works council initiated the frame-
work agreement and future safeguarding for the Mission E
project in 2016. This comprises a ground-breaking package
of measures for securing sites in the long term and envisag-
es the production of several tens of thousands of electric
vehicles at the Zuffenhausen site.
Porsche's success hinges on our employees - their abilities,
their dedication and their passion. They identify with and
embrace the values and objectives of the company. As at
the reporting date of December 31, 2016, Porsche AG
employed 27,612 people. That's an increase just short of
13 per cent on the previous year
Sport and society
Fostering young talent is a key tool for increasing the propor-
tion of women in the company. Porsche pursues a large
number of initiatives to address female students at an early
stage so as to encourage a bond with the company.
For example, Porsche has successfully expanded its coop-
eration with Femtec, which has been in place for 15 years.
Particular highlights in the year under review were the
Femtec innovation workshop - a practical project spanning
several months - and the Femtec commitment award.
Porsche sponsored the award for three participants.
Porsche has been busy informing female students and young
women with work experience about their options for joining
The tennis fairy tale continued. In July, Kerber made it to the
final of Wimbledon and then went on to win a silver medal
at the Summer Olympics in Rio de Janeiro. On September 10,
two days after becoming the new world number one, Kerber
won her second Grand Slam title at the US Open - a dream
come true. It was in New York in 2011 that she reached
the semi-final of a Grand Slam tournament for the first time
in her career. "This is where my journey began. To win the
US Open and be number one five years later is simply fan-
tastic". In the largest tennis stadium in the world, Kerber
beat the Czech Karolina Pliskova 6:3, 4:6, 6:4 in a top-class
match in front of 20,000 spectators. "We are proud of our
brand ambassador", said Oliver Blume, Chairman of the
Executive Board of Porsche AG. "Angelique Kerber is an
amazing sportswoman and a role model for young people".
quently require patience. Almost 20 years after Steffi Graf,
a female German player once again made it to the top of
the ladies' tennis rankings in September 2016: the Porsche
brand ambassador Angelique Kerber. Her extraordinary
winning streak began in January with her first Grand Slam
win at the Australian Open. In April, she took the title at the
Porsche Tennis Grand Prix 2016. In Stuttgart, this young
woman from Kiel managed what no other female German
player before her has ever achieved: a second win in a
row at this tournament.
Careers in elite sport are often a waiting game and fre-
"Simply fantastic"
The Porsche Tennis Grand Prix is not only synonymous with
world class tennis and top-quality entertainment for the
whole family; it is also a model of sustainability and environ-
mental compatibility. For instance, every admission ticket
also doubles as a ticket for use on public transport. And the
clay court, which is laid in the Porsche Arena every year for
the tournament, is reused in road construction rather than
being thrown away after the final match point.
on the worldwide WTA Tour. Stuttgart traditionally attracts
the best female players in the world - in 2016, seven of the
game's top ten stars took part. In front of mostly sell-out
crowds, it delivered thrilling matches featuring some spectac-
ular rallies. It was easy to see why they were keen to take
part, with not only a handsome sum of prize money awaiting
the winner in Stuttgart, but also an exclusive Porsche sports-
car as the first prize. In 2016, Angelique Kerber successfully
defended her title to drive away from centre court in the
winner's car for the second time. The Porsche brand ambas-
sador beat newcomer Laura Siegemund in the first all-German
final in the tournament's history.
The good news from the headquarters of the Women's Ten-
nis Association (WTA) in Florida came just before Christmas,
as the WTA Tour players once again voted the Porsche
Tennis Grand Prix their favourite tournament in its category -
making this the eighth time since 2006. Back then, the move
to Stuttgart's Porsche Arena heralded a new era for the
event, which has been held since 1978. With the support of
Porsche, the tournament has since become a flagship event
HE
The Porsche Tennis Grand Prix
for all partner clubs, with awards for best sporting devel-
opment, best academic achievement and outstanding
social commitment.
of society, regardless of their background and level of
education, and to enable them to gain valuable and formative
experiences for later life. This was also the motivation for the
"Porsche Nacht der Talente" ("Porsche Night of Talent"),
which was held for the first time in the reporting year
All of these commitments are intended to develop talent,
but above all to give young people a positive experience
In ice hockey, Porsche supports young players at the
Bietigheim Steelers. The highlight is the annual ice hockey
camp. In neighbouring Ludwigsburg, more than 2500 chil-
dren and young people play at the Basketball-Akademie
(BBA) an alliance of 55 schools and 12 clubs. Porsche ex-
tended its partnership with the BBA during the reporting year.
The Porsche Coaching Mobil celebrated its debut with the
youngsters at the Stuttgarter Kickers in June of the reporting
year during the Porsche football holiday camp. Children and
young people had fun finding out about fitness training
methods, coordination, endurance and injury prevention.
as well as Stuttgarter Kickers and SG Sonnenhof Großaspach.
The football school at RB Leipzig is aimed at boys and
girls between the ages of 7 and 14. In October of the report-
ing year, some 30 grassroots footballers took part in the
autumn training camp at "Soccerworld" in Leipzig. Ten of the
children came directly from the families of Porsche employ-
ees, while a further 20 came from the projects "Genera-
tionenhof", "Zukunft für Kinder" and "Charity Bulls". Also at
the camp was the Porsche Coaching Mobil, a trailer created
especially for youth development, fitted with sports equip-
ment and instruments for measuring performance data.
Porsche and RB Leipzig also wanted to find out which district
of Leipzig is the best at football. In the second Leipzig
quarter final, the youngsters from the north of Leipzig won
the tournament in the under-elevens category (U11). In the
under-fourteens category (U14), the east of the city won
the coveted trophy for the first time. In total, more than
750 girls and boys in 80 teams battled it out for the title.
"Turbo for Talents" also applies to the partnerships with the
youth teams at German first division football club RB Leipzig,
The training sessions are primarily intended to promote a
love of the game, along with values such as team spirit
and fairness.
Porsche reinforces this initiative every year. For example,
the reporting year saw the start of a collaboration with
the German second division football club VfB Stuttgart,
aimed at promoting youth work. As a result, Porsche is the
main partner of the VfB Fußballschule - a football school
aimed at young football enthusiasts that actively finds
and promotes new talent. The school organises more than
60 camps a year, where VfB coaches professionally train
children and young people at local football clubs.
people, as well as to overcome social divides and promote
skills and enthusiasm. A key element of this commitment
is the "Turbo für Talente" (Turbo for Talents) programme. At
Porsche, this name has long stood for the development of
youth sport primarily in team sports at the different
company sites.
For people to achieve success and fulfilment in their career,
they need to receive the best possible training. Porsche
acts according to this philosophy - including outside its own
company. Porsche considers it part of its social responsibility
to support the personal development of children and young
Even more "Turbo for Talents"
52
Porsche considers itself part of society both in Germany
and abroad. It sponsors the public celebrations on German
Unity Day and helps young people enter the workforce in
Manila and Cape Town. Many employees choose to continue
helping the disadvantaged in society in their own time and
undertake voluntary work. More than 3000 employees took
part in the six-hour run in Zuffenhausen. For every lap of the
911-metre circuit completed, five euros were donated to
charity. The event raised EUR 180,000, which will do a great
deal of good. The money is urgently needed at the children
and young people's hospice in Stuttgart, as well as the farm
for children and young people in Zuffenhausen.
62
53
In addition, Porsche supports the "Bürgerstiftung Stuttgart"
civic foundation. This is a charitable institution engaged in
the areas of art, culture, youth issues, social affairs, educa-
tion, science and research, health and sport. It awards a
civic prize that recognises volunteer work, while its
"Ausbildungscampus" (education campus) initiative makes
a sustainable contribution to supporting refugees.
As part of Stuttgart's Unicef city partnership, donations in
the six-figure range were made to the children's relief
organisation. Porsche has also supported the "Mobifant" play
bus in this context. This is aimed specifically at refugee
residences in Stuttgart and offers the children that live there
opportunities to play and exercise.
It then distributes it free of charge or for a symbolic
amount to people in need.
In view of the current refugee situation, Porsche is providing
financial aid to the Deutsche Tafel initiative in Mühlacker,
Stuttgart, Pforzheim and Leipzig. Deutsche Tafel e.V. is a
charitable relief organisation that collects food that is
no longer in circulation and would otherwise be destroyed.
As a successful company, Porsche feels it has an obligation
to society as a whole, and especially to people at its various
sites. That's why Porsche is taking an active role in promoting
social and cultural life in these towns, cities and regions,
making donations to support more than 100 projects at
the sites in 2016.
Social commitment at the sites
EAF Berlin and the Technical University of Berlin. Femtec is
the international career platform for women in engineering
and natural sciences. It generates interest in MINT profes-
sions and offers ambitious students excellent career pros-
pects, while also providing qualifications and placements for
outstanding MINT professionals. Another significant benefit
is the fact that the Femtec network has access to well-known
technology companies, leading scientific institutions and
technical universities.
As a cooperation partner in higher education, Porsche
supports the student organisation AIESEC and Femtec, an
international career platform that promotes women in
engineering and natural sciences. Porsche has also been
a supporting member of the Foundation of German Business
(Stiftung der Deutschen Wirtschaft - SDW) for eight years.
Scholarship holders regularly have the opportunity to attend
trips and specialist lectures at Porsche. Porsche has also
been involved for many years in the promotion of women
who study a technical subject. Porsche is a founder member
of the Berlin-based Femtec.GmbH, initiated in 2001 by
For Porsche, supporting gifted young people and students
is an investment in the future. The aim is to generate enthu-
siasm and create opportunities. For many years, its coop-
eration partners among the schools have been the Ferdinand
Porsche Gymnasium and the Friedrich-Eugens-Gymnasium
in Stuttgart, which are both known as "MINT" high schools
due to their focus on mathematics, IT, natural sciences
and technology. Porsche supports the schools with dona-
tions in kind, specialist lectures, careers information
days and excursions.
Education and science
In Leipzig on two June evenings, more than 25,000 guests
attended the renowned open-air summer concert series
"Klassik airleben" in the Rosental, a spacious green area of
the city. Porsche was the main sponsor of this event for the
third time in a row. Under the title "La Primadonna", Ricardo
Chailly conducted works from musicals, films, operas and
operettas with soprano Simone Kermes.
be able to experience a concert or a dance performance live
at least once in the season. That is why the motto in Stutt-
gart and Leipzig is "outdoors and free". In Stuttgart, Porsche
supports the open-air event "Ballett im Park", where the
audience watches a live broadcast of the performance from
the opera house on a big screen with Dolby surround sound.
As a sponsor of the Leipzig Orchestra and Stuttgart Ballet,
Porsche wants to ensure that many people have the opportu-
nity to enjoy these world-class institutions. Everyone should
School is also ongoing, helped in no small part by a dona-
tion of ten million euros from Porsche AG.
54
In the 1960s, the Stuttgart Ballet won the hearts of its audi-
ences under the artistic direction of John Cranko. Following
international tours, most notably in the USA, critics spoke
of the "Stuttgart ballet miracle". In the reporting year, the
highlights of the season were the galas held by the ballet
company and the John Cranko School as part of a week of
celebrations to mark 20 years under the artistic direction
of Reid Anderson. The construction of the new John Cranko
At the two sites in Stuttgart and Leipzig, Porsche supports
world-class institutions. For generations, the Stuttgart Ballet
and the Leipzig Gewandhaus Orchestra have stood for excel-
lence on the international cultural scene. In 2016, a total of
16 renowned music critics ranked the Leipzig ensemble, in its
272nd year of existence, as the fourth best orchestra in the
world. The concert hall also scooped another award: Riccardo
Chailly, Music Director since 2005, was named the world's
best conductor.
High culture for all
As well as the Porsche European Open, which was held for
the first time in 2015, the company has also been involved in
amateur golf since 1988 with the global Porsche Golf Cup.
Porsche has expanded its commitment to golf this year with
the Porsche Generations Open, an innovative nine-hole
format for amateur golfers from two generations, which is
initially limited to Germany.
In September of the reporting year, the Porsche European
Open teed off for the second time in Bad Griesbach. The
tournament is one of the oldest on the European Tour,
and its global renown is of particular importance to the
professional golfers. The fan favourite in Europe's largest
golf resort was Martin Kaymer of Germany. More than
35,000 spectators took the opportunity to see the two-time
major winner and Germany's number one golfer in action.
A total of 5 major winners as well as 13 former and
2 current Ryder Cup players took part at Bad Griesbach,
along with many tournament winners from previous years.
The latest winner was the Frenchman Alexander Lévy.
Convinced by the great success of the tournament, Porsche
has extended the title sponsorship by three years until 2020.
The future venue will be the Green Eagle golf course in
Winsen near Hamburg.
World-class golf
Performance - Employees, Sport and Society
More than 3,000 employees took part in the six-hour run
in Zuffenhausen. For every lap of the 911-metre circuit
completed, five euros were donated to charity.
€ 180,000
In the field of sport, Porsche is committed to supporting an
extremely diverse range of activities. This includes profes-
sional tennis as well as the promotion of local sports clubs,
enabling children and young people from difficult back-
grounds to integrate into society. Porsche strives to achieve
social acceptance - both for the company and for people
who have had a tough start in life. But Porsche also supports
the disadvantaged in society in other areas - such as young
patients who, due to serious illness, would have to wear
a respirator at all times and practically live in the intensive
care unit. At the "Arche IntensivKinder" children's hospice
in Kusterdingen near Tübingen, Germany, young people are
given the chance to determine their own lives thanks to
the support of Porsche and many others.
Employees have also volunteered to support refugees-
from organising clothes donations and looking after
children to arranging shared excursions.
refugees were given the chance of a training or work place
in Germany in the 2016 financial year with the start of the
integration year.
13
Diversity is a characteristic of our company, and social
responsibility is part of our corporate culture. With the start
of the "integration year for refugees" in the 2016 financial
year, 13 refugees were given the chance of a training or
work place in Germany. The first integration year ended
successfully in August. All those assisted found a job, began
their training or took part in other continuing measures.
From January 2017, Porsche is continuing the programme
in optimised form with 15 participants
Assistance for refugees
Solar energy per year from the
photovoltaic system on the body
shop in Leipzig
Other German
locations 846
50
49
Performance - Employees, Sport and Society
48
Demographic changes and the associated lack of skilled
workers pose a huge challenge for Porsche, just like other
companies. The employability of older employees is key
here. The aim is to keep them employed, while looking after
their health and well-being, until the standard retirement age
is reached. Independently of this, the option of semi-retire-
ment is available at the company. Employees in particularly
demanding jobs have the option of a gradual transition to
retirement. Roles made vacant by semi-retirement are, in
principle, re-filled with permanent staff.
Semi-retirement
In second-tier management, the proportion of women
was 8.1 per cent, slightly above the target of 8.0 per cent.
A target has also been set to raise the proportion of
women in second-tier management to 15 per cent by
December 31, 2021.
The target quota of 9.3 per cent for women in first-tier
management, set by Porsche AG, was not achieved at the
end of the year under review - the figure was 8.2 per cent.
This was due to a tragic accident and the fact that this
senior role could not be filled by a woman at short notice.
Porsche AG is setting a target of 15 per cent for women
in first-tier management by December 31, 2021.
At the time when a specific target had to be set under the
Act, all departments were represented on the Executive
Board by men. As the respective contract terms extend
over several years, the Supervisory Board decided not to
adjust the target for women on the Executive Board as of
December 31, 2016. The status quo of zero was confirmed
until December 31, 2021. The Porsche Supervisory Board
has, however, set itself the goal of increasing the proportion
of women on the Executive Board in the longer term.
Targets for proportion of women on Supervisory
Board, Executive Board and in management
The proportion of women on the Supervisory Board at Porsche
was 10 per cent at the time when a specific target had to be
set under the Act. Owing to the long-term obligation imposed
on its members, the Supervisory Board set 10 per cent as
the target for women on the Supervisory Board by 31 Decem-
ber 2016. This target was reached. The company will retain
the 10 per cent target until the end of the target period on
December 31, 2021.
As part of the Diversity Congress organised by the Baden-
Württemberg State Ministry of Economics, Porsche was
involved in drawing up a recommendation paper for promot-
ing diversity in business and politics. In doing so, the compa-
ny emphasised its intention to continue moving towards a
working environment in which the individual skills and capa-
bilities of all employees can flourish in a corporate culture
characterised by openness and integration. Seminars on
"Diversity and Contribution" involving employees from the
HR team and managers in the company underline this.
a Girls' Month. On Girls' Day, more than 150 female pupils
from surrounding secondary schools were given an insight
into the technical vocational fields at Porsche. A Porsche
project for both male and female pupils at Stuttgart schools,
in collaboration with the European Academy for Women in
Politics and Business (EAF), uncovered differences in the
way in which men and women communicate. Using an online
quiz involving technical questions, Porsche issued a call for
female pupils across Germany to take part in Girls' Month.
Winners of the Ferry Porsche prize also met with tennis start
and Porsche brand ambassador Angelique Kerber.
In April 2016, Porsche expanded its Girls' Day initiative,
which has been established for many years, to include
the company at women-specific fairs such as Jobunication,
Women&Work and careers events for female students. 2016
was the first year that Porsche organised a careers day for
female engineers and IT specialists. 50 selected candidates
gained an insight into the company.
Visit "Porsche-hilft.de" to see the projects we are involved
in. Here, you can also find a selection of other measures
supported by the Volkswagen Group.
Health management
Porsche health management is proactively involved in the
cross-departmental development of workplace framework
conditions. The primary aim is to safeguard the health
and fitness of employees and therefore their ability to work
in the long term. One key element is the quick reintegration
of employees who have been ill for an extended period
and the employment of older people in keeping with their
health needs.
Porsche health management develops preventative measures
and runs pilot projects to test their effectiveness for daily
use. Ergonomic assessments, for example, reduce unneces-
sary strain at work that can be prevented in specific situa-
tions. Workstations are designed to support health through
ergonomics and accommodate all age groups. Porsche
has also increased the range of job-related physiotherapy
services, in parallel with holding of training measures to
encourage preventative conduct.
SPORT AND SOCIETY
51
Performance - Employees, Sport and Society
4,112
Leipzig
Ludwigsburg
2,037
1,446
Bietigheim-Bissingen
482
Sachsenheim
Porsche is involved with a number of initiatives in Leipzig,
including the Generationenhof. The institution has been
working since 2009 to support children, young people and
older people to live and work together under one roof,
under the motto "Jung und Alt - Gemeinsam miteinander"
("Young and old together"). The Generationenhof is particu-
larly focused on providing a temporary or long-term home
for children and young people who are no longer able to live
with their own families, for a multitude of reasons.
6,062
Zuffenhausen
9,696
at locations in Germany
Employees
Porsche's success story is actively shaped from one day
to the next by our employees. It is only thanks to their
personal commitment, their love for detail, their courage
and creativity that we can look back on the past year with
pride. The Executive Board would like to extend a very
personal thank-you to all staff for their tireless efforts. This
gratitude is also extended to employee representatives,
who unfailingly champion staff interests and have made such
an active contribution to ensuring that the company is fit
for the future.
A big thank-you to our employees
At many events, such as the Porsche Tennis Grand Prix
or the Porsche Hocketse street party, Porsche Gastronomie
has made for a perfect culinary setting. The high level of skill
was also exhibited in the Porsche Museum and the Leipzig
customer centre in 2016: Through the Open Table booking
website, guests voted the "Christophorus" restaurant in
the museum as the second-best in Germany. In the Michelin
Guide, it ranks alongside the top addresses in Stuttgart.
To keep employees going between meals, self-service
shops and vending machines complete the picture. At the
end of 2016, around 800 vending machines were replaced.
The new generation of machines operates using CFC-free
refrigerant.
Catering provided at the plants is a key benefit enjoyed at
the Porsche Group. In the past financial year, 3.34 million
hot meals were prepared and served at the 14 staff
canteens currently in operation at the German sites. The
canteens focus particularly on the freshness of the ingredi-
ents used and reducing food miles by sourcing from
regional suppliers.
Porsche Gastronomie
As international activities have increased, the number of
consultations relating to health and well-being for travel and
compulsory medical precautions has risen considerably - by
more than 60 per cent between 2015 and 2016 alone.
Weissach
In the year under review, Porsche again scored highly in
high-profile employer rankings. In the latest Universum study,
the company was placed third in the Business/Commerce
category and gained one place to rank second in the Engi-
neering category. Among students taking automotive-related
courses, Porsche is seen as the best car-maker, winning the
"Automotive Top Career Award". Porsche also received a
"Trendence Employer Branding Award" for the best careers
website and an "HR Excellence Award" for the employer film.
The Trendence study of the most attractive employers in
Germany put Porsche in fourth place for Business/Commerce
students, with prospective engineers placing Porsche third.
727
Spectacular global innovations
0
145
1
194
1
329
1
390
3
59
1,000
1,337
Other financial assets
2
598
2
647
Financial services receivables
2
486
4
0
43
0
Current other financial assets increased by 337 million euro
to 1,337 million euro. This was primarily attributable to the
clearing account with Porsche Holding Stuttgart GmbH.
Non-current and current receivables from financial services
rose from 1,887 million euro to 2,010 million euro. This
item mainly contains receivables from finance leases and
receivables from customer and dealer financing.
As a percentage of total assets, current assets amount to
27 compared to 26 per cent in the prior year. Inventories
increased slightly from 2,509 million euro in the prior year
to 2,536 million euro at the end of the reporting period.
Deferred income tax assets amounted to 879 million euro
compared with 727 million euro in the prior year.
Fixed assets expressed as a percentage of total assets
increased to 40 per cent (prior year: 38 per cent). Intangible
assets increased from 3,286 million euro to 3,965 million
euro. The increase mainly relates to capitalized development
costs. The largest additions relate to the Cayenne, Panamera
and 911. Property, plant and equipment increased in com-
parison to the prior year by 536 million euro to 5,116 million
euro, primarily due to additions to land and buildings, technical
equipment and machinery, and other equipment, operating
and office equipment. These additions consist mainly of tools
and construction work for the new generations of vehicles.
Leased assets increased by 612 million euro in comparison
to the prior year to 3,373 million euro. This item contains
vehicles leased to customers under operating leases.
At the end of the reporting period, the fixed assets of the
Porsche AG group - i.e., the intangible assets, property,
plant and equipment, leased assets, financial assets
accounted for using the equity method and other financial
assets came to 12,841 million euro, compared with
11,009 million euro in the previous year.
Non-current assets increased by 2,044 million euro to
23,592 million euro. The increase relates mainly to fixed
assets and to deferred taxes. Non-current assets expressed
as a percentage of total assets amounted to 73 per cent
(prior year: 74 per cent).
As of December 31, 2016, the total assets of the Porsche
AG group stood at 32,235 million euro, 11 per cent higher
than on the prior-year reporting date.
NET ASSETS
100
29,143
100
32,235
26
7,595
27
8,643
9
2,485
9
2,889
2
Cash and cash equivalents increased significantly year on
year, climbing by 404 million euro to 2,889 million euro.
591
9
Financial services receivables
10
2,761
11
3,373
Leased assets
0
50
0
1,363
54
332
1
333
16
4,580
16
5,116
11
3,286
1
4
1,289
5
2,509
8
2,536
74
21,548
73
23,592
2
3
879
0
8
0
10
0
31
29
8,505
26
8,478
Other financial assets
Other receivables
Trade receivables
12
The equity of the Porsche AG group increased by
Net Assets
2,214
8
2,589
Trade payables
9
2,768
6
1,830
Financial liabilities
8
5
5
1,636
0
63
0
77
26
7,472
29
1,460
Other financial liabilities
3,337
10
RESEARCH AND DEVELOPMENT
77
Performance - Financial Analysis
100
29,143
100
32,235
10,971
34
10.809
1
489
2
557
3
850
3
783
Other liabilities
11
3,127
9,446
1,280 million euro to 11,980 million euro compared
1
1
10,700
37
11,980
Equity
Equity and Liabilities
Current liabilities
Tax payables
Provisions for taxes
Other provisions
Other financial liabilities
Other liabilities
Non-current liabilities
37
Cash and cash equivalents
Current assets
Other receivables
Inventories
Tax receivables
Deferred tax assets
Non-current assets
Other equity investments
Property, plant and equipment
Equity-accounted investments
Intangible assets
Assets
million euro
of the Porsche AG Group
Tax receivables
Securities
Provisions for pensions and similar obligations
3,213
10
316
3
776
2
699
9
2,549
11
3,669
2
749
3
864
Deferred tax liabilities
Financial liabilities
3
772
2
685
Other provisions
8
2,361
265
3,965
37
Dec. 31, 2015
Motorsport and sustainability - a combination that appears
unlikely at first glance. It is only when you look closer that
the link becomes clearer: Series-production vehicles are the
true winners from motorsport. Race tracks are essentially
a testing ground for Porsche. Testing new technologies and
innovations under extreme pressure facilitates the continuous
technological enhancement of series sportscars - and this
is how Porsche transfers its technology. Racing has had
a particularly noticeable impact on the development fields
of lightweight construction and aerodynamics. However,
Le Mans and other races are also enabling some pioneering
work in other fields, such as developments in battery tech-
nology and the enhancement of exhaust energy recuperation
systems. The result of this work is increased efficiency and
reduced emissions, both on the race track and on the road.
For example, the latest 911 Carrera saves 13 per cent more
energy than its predecessor. The 718 Boxster that was
introduced in spring 2016 also manages with 13 per cent
less energy, despite being more powerful. Sportiness,
performance and efficiency are not sacrificed at Porsche -
these features are supplemented and improved.
From the race track to the road - technology transfer
in motorsport
In the 2016 financial year, research costs and non-capital
development costs (excluding depreciation and amortisation)
at Porsche AG amounted to 981 million euro (previous year:
1.11 billion euro). Capitalised development costs amounted
to 1.23 billion euro (previous year: 1.04 billion euro). The
total research and development costs (excluding deprecia-
tion and amortisation) were 2.21 billion euro (previous year:
2.15 billion euro). In the 2016 financial year, the capitalisa-
tion rate was 56 per cent.
Research and development costs
to a joint effort by employees and the Porsche works council,
bat boxes were introduced to the site and the surrounding
woods for the first time in the reporting year, supplementing
the numerous nesting boxes already available in the area.
With these projects for protecting nature and the environ-
ment, Porsche is enabling responsible expansion of the
Development Centre in Weissach.
Porsche is offsetting the extra space required for the contin-
ued expansion of the Development Centre with the imple-
mentation of compensatory measures agreed with the local
authorities. Alongside an area-specific compensation meas-
ure, Porsche is implementing supplementary measures for
promoting conservation. In the spring of 2016, a project
was launched with the aim of planting over 30 new trees on
the company grounds. The range of trees included lindens,
field maples, beeches and oaks. With the development of a
forest management concept as another environmental meas-
ure, Porsche is protecting a sufficient number of breeding
sites for the variety of different mating birds that reside on
the testing grounds of the Development Centre. Thanks
one roof.
Fascinating products and innovative technology have long
been a feature of the Porsche Development Centre in
Weissach. In 2016, Porsche finished construction on the new
drive and test centre in Weissach, which has a total floor
area of 35,000 square metres. A total of 18 test stands
support the development of new hybrid drives, combustion
engines and electric motors. There are 600 Development
Centre employees working in the building complex, where
test stands, workshops and offices are combined under
Responsible expansion of the Porsche Development
Centre in Weissach
62
Porsche 911 RSR to compete again
The Porsche 911 RSR was another highlight of the Los
Angeles Motor Show. The model is distinguished by its
consistent lightweight construction, new chassis, adjusted
body structure, reworked aerodynamic concept and opti-
mised engine and transmission. The GT racing car is driven
by a modern, naturally aspirated, six-cylinder flat engine in
front of the rear axle. Depending on the size of the restrictor,
this powerhouse delivers up to 375 kW (510 hp). The power
distribution in the vehicle is regulated by the sequential
six-speed constant mesh transmission with magnesium cas-
ing, which is controlled via rocker switches. An extra-large
rear diffuser ensures efficient aerodynamics. The aluminium/
steel hybrid construction reduces the overall weight of the
body, as previously demonstrated in the 911 GT3 Cup.
Porsche has installed the latest assistance systems in the
911 RSR. The "Collision Avoid System" - a radar-assisted
collision warning system - warns the driver of hazardous
situations on the race track via a monitor in the cockpit, even
when driving in the dark.
The exclusive standard equipment of the all-wheel drive
Panamera Executive versions includes a large panoramic
roof and electrically adjustable heated comfort seats in the
front and rear, Porsche Active Suspension Management
PASM and roll-up sunblind behind the headrests in the rear.
The Panamera 4S Executive and the Panamera Turbo Execu-
tive also offer rear-axle steering and soft-close doors as
standard. The additional features of the Panamera Turbo
Executive include four-zone climate control, ambient lighting
and LED main headlights including the Porsche Dynamic
Light System (PDLS).
At the end of November, the long-wheelbase versions
of the Panamera Turbo Executive with 404 kW (550 hp),
the Panamera 4S Executive with 324 kW (440 hp), the
Panamera 4 E-Hybrid Executive with 340 kW (462 hp) and
the Panamera 4 Executive with 243 kW (330 hp) celebrated
their world première at the Los Angeles Motor Show. The
wheelbase of the Executive versions is 150 millimetres
longer than with conventional Panamera models. For the
first time, the Panamera, Panamera 4 and Panamera 4
Executive feature a new three-litre V6 turbo engine with a
performance increase of 15 kW (20 hp) compared to the
first Panamera generation. At the same time, Porsche has
been able to reduce the fuel consumption of the Panamera 4
Executive by up to 1.0 l/100 km in accordance with
the NEDC.
New Panamera versions in Los Angeles
hybrid which always starts in purely electric mode - can
cover a range of up to 50 kilometres and reach a maximum
speed of 140 km/h as a zero-emissions vehicle for local
driving. This sporty luxury saloon accelerates from zero to
100 km/h in 4.6 seconds, and can draw on a system torque
of 700 Nm from a standing start. According to the NEDC
for plug-in hybrid models, this model has an energy con-
sumption of 2.5 l/100 km and 15.9 kWh/100 km of electric
energy. The brake system in the Panamera 4 E-Hybrid was
developed from the system in the 918 Spyder and is known
as a "two-box system", consisting of an electromechanical
brake booster and a hybrid-compatible hydraulic unit. The
Panamera 4 E-Hybrid benefits from recuperation, meaning
that it recovers energy via the generator in the electric motor
when the vehicle brakes. When the driver presses the brake
pedal, the active recuperation management determines
whether the car brakes as a result of torque from the elec-
tric motor and/or as a result of the conventional brakes.
The driver cannot tell that this is happening, yet this process
provides the maximum level of recuperation and efficiency.
In the Panamera 4 E-Hybrid, an electric motor and petrol
engine combine harmoniously, so that the 100 kW (136 hp)
of power generated by the electric motor is available at the
first touch of the accelerator. This, together with the new
2.9-litre V6 biturbo engine delivering 243 kW (330 hp),
generates an impressive boost scenario, with the electric
motor generating additional power at all times. This all-wheel
Porsche delivers a system power of 340 kW (462 hp) and
achieves a top speed of 278 km/h. In the redeveloped
"Hybrid Auto" driving mode, the vehicle is able to automati-
cally switch between and combine the two drive sources,
guaranteeing ultimate driving efficiency. The plug-in
At Porsche, sustainability and performance are not mutually
exclusive. Hybridisation and electromobility are key princi-
ples for conserving resources and reducing energy require-
ments and emissions. At the same time, Porsche is able
to combine sportiness with the highest level of technologi-
cal ambition in its vehicles. Some winning examples of
this design strategy include the Panamera S E-Hybrid, the
918 Spyder super sportscar and the Cayenne S E-Hybrid.
At the beginning of September 2016, Porsche presented
the Panamera 4 E-Hybrid at the Paris Motor Show. The
hybrid strategy used to control the drive originates from
the 918 Spyder super sportscar.
E-Performance: New hybrid strategy for the
Panamera 4 E-Hybrid
Porsche also presents a forward-thinking display and control
concept in this model line, in the form of the Porsche
Advanced Cockpit with touch-sensitive panels and individually
configurable displays. At the same time, the user is able to
benefit from the clearer and more intuitive operation.
61
The Panamera and the Panamera 4 also debuted in Los
Angeles. Delivering 243 kW (330 hp), these models
represent the entry-level versions of Porsche's line of
luxury saloons.
62
Performance Research and development
63
is assuming responsibility for all vehicles that have generally
been in production more than ten years. This remit includes
all aspects, from the technical literature to delivery of
52,000 genuine parts, right through to complete restorations.
The international dealership and service network was expand-
ed in 2016 to ensure optimum vehicle maintenance and to
become an expert point of contact for enthusiasts of classic
Porsche cars. Customers and potential buyers have a choice
of a 45 Porsche Classic partners around the world, two
of which are Porsche Classic Centres. These Porsche Classic
Centres bring the areas of services, workshop and classic
sportscar sales together under one roof for the first time. This
concept sees the sportscar manufacturer integrate the main-
tenance and value retention of modern and older classic
cars into a single innovative service concept, which closely
interlinks tradition and innovation.
In addition to its current models, Porsche's classic vehicles
thrill fans of the brand all over the world. Porsche Classic
Tradition and innovation closely interlinked
Expanding expertise in terms of methodology is essential
for ensuring continuous improvement of vehicle quality and
service. Advanced analytics, for example, automatically
and intelligently detect and draw links between cases and po-
tential focus areas for repair using algorithms as part of
automated learning. This system makes it possible to
observe the entire guarantee and goodwill period for all
existing customer and vehicle data. The result in the medium
term is faster response times and increased efficiency. This
expansion of the necessary infrastructure and relevant exper-
tise enables further applications to be opened up based on
"data and text mining" - the automated analysis of unstruc-
tured or poorly structured data and text.
of local market assistance over the course of the reporting
year and contains concepts for optimising repair costs and
providing customers with reliable long-term care.
Another key focus of the team's work in after sales is the
electrification of the drivetrain, which involves expertly
repairing high-voltage batteries. Fundamental to this is a
programme for expanding repair bases at the importer
and retail level. This programme was developed with the help
In 2016, the after sales training department shifted the
focus of its work at the Zuffenhausen headquarters. The
team's objective is to qualify the global retail organisation
in view of technical vehicle innovations. The structure of
the team's specialist fields is now streamlined, flexible and
effective, focusing on new training methods, technologies
and responses to modified market requirements. The result
of this is a comprehensive qualification strategy for the
retail organisation, which will follow as the next step. To
implement this strategy, more than 14,000 service employ-
ees working in Porsche Centres are being prepared to
handle increasingly complex vehicle technology, including
electromobility and digitalisation, as well as new customer
requirements. This requires state-of-the-art training methods
and media. "Learning on demand" will become an integral
part of day-to-day work in the future thanks to virtual reality
and new video portal concepts, including via mobile devices.
almost three times more than for the 718 Boxster
and 718 Cayman models that were introduced shortly before.
The after sales department is providing the Porsche retail
organisation with the best possible preparation for future
challenges. For example, the retail development team
expanded its global area of operations to 32 countries and
integrated new fields of expertise. The team works with
dealerships on site to help them optimise the processes
and procedures both in their workshops as well as in direct
contact with customers. Consultants analyse individual
weaknesses, then develop solutions in collaboration with
colleagues on site and help to implement them. The retail
development team implemented 75 of these operations
in 2016.
In keeping with the company's overall strategy in 2016, the
after sales department focused on the market launch of the
new Panamera as well as the global provision of spare parts
for the second generation of the Porsche sports saloon.
There were around 5,000 new parts available to the retail
organisation and its customers at the time of the car's sales
launch
Professional service
911 Carrera S Cabriolet and 911 R triumphed over the
competition in their respective categories. This meant that
Porsche came out on top as the most successful manufac-
turer in the survey. The British magazine "Top Gear" named
the Cayman GT4 as "Sports Car of the Year" and the
Porsche 911 GT3 RS as "Hardcore Car of the Year". The
German marketing prize "Best Brands" awarded Porsche
the title of best corporate brand in Europe - a nod to the
company's commercial success and the appeal of its brand.
In Germany, more than 115,000 readers of the car maga-
zine "auto, motor und sport" voted the 911 and the 911 Cab-
riolet into top spot in the sportscar and cabriolet category in
the "Best Cars 2016" list for the second year running. "sport
auto" readers chose Porsche models as the winners in four
out of ten categories. The Boxster S, 911 Turbo S Cabriolet,
Porsche also came out on top as the best brand in the USA's
"Sales Satisfaction Index" (SSI) in 2016 for the first time.
The SSI is compiled every year by J.D. Power. It focuses on
customer experiences with dealerships as well as new car
buyers' satisfaction during the buying process. The famous
US consumer magazine "Kelley Blue Book" presented the
Porsche brand with three Brand Image Awards - one for
Porsche in the category "Best Performance Luxury Brand",
one for the Macan in "Best Resale Value - Luxury Compact
SUV/Crossover" and one for the Panamera in "Best Resale
Value - High-End Luxury Car". Readers of the American
car magazine "Car and Driver" chose the Boxster/Cayman
as one of their "10 Best Cars".
Porsche also came out on top as the best brand in the USA's
"Sales Satisfaction Index" (SSI) in 2016 for the first time.
1st place
A wealth of international studies have confirmed that our
efforts to win customer loyalty and satisfaction have
achieved exceptionally successful results. In 2016, Porsche
won first place for the twelfth time running in the overall
evaluation of the "Automotive Performance, Execution and
Layout Study" (APEAL) conducted by J.D. Power, the
renowned American market research company. Power. That
means Porsche remains the most attractive vehicle brand
for customers in the USA. In addition, the Porsche 911,
Boxster and Macan models took first place in their respec-
tive categories. More than 80,000 new car owners took
part in the survey, assessing 245 models from 33 manufac-
turers in 10 categories.
Awards and recognition from all sides
SALES
Procurement
Production
Sales, Production, Procurement
Sales
Porsche has perfected the balancing act between sportscar
and luxury saloon with a new three-chamber air suspension
including the electronic damper control Porsche Active
Suspension Management (PASM) and the new electronic 4D
Chassis Control. The rear-axle steering, which is based on
the 918 Spyder and the 911 Turbo, provides the precision
and handling of a sportscar. The enhanced Porsche Dynamic
Chassis Control Sport (PDCC Sport) including Porsche Torque
Vectoring Plus (PTV Plus) supplements the overall concept.
Electromechanical steering ensures greater driving comfort
and efficiency.
Enhancing the dealership sustainability initiative
With the implementation of its "Dealership Sustainability
Initiative", Porsche AG is supporting the planning, construc-
tion and operation of environmentally sustainable Porsche
Centres. The first reference project for this initiative in 2016
was the construction of a photovoltaic pylon on the site of
the new Porsche Centre in the Berlin-Adlershof technology
park a clear affirmation of a sustainable approach to energy
generation that conserves resources. The 25-metre high,
37-tonne steel construction with a striking convex façade
is fitted with exactly 7,776 monocrystalline solar cells that
generate up to 30,000 kilowatt hours of electricity per
year enough power to meet the Porsche Centre's basic
energy requirements. As a special service, visitors can
charge their electric vehicles for free using solar energy
from the pylon's charging pedestal.
The Panamera 4S Diesel is driven by a four-litre V8 engine
with 310 kW (422 hp) and 850 Nm of torque. The maximum
torque is available from 1,000 rpm up to 3,250 rpm and this
model accelerates from zero to 100 km/h in 4.5 seconds.
With a top speed of 285 km/h, it is currently the world's
fastest series-production vehicle with a diesel engine. A V6
petrol engine with 2.9-litre displacement and 324 kW
(440 hp) drives the Panamera 4S. Between 1,750 rpm and
5,500 rpm, the six-cylinder engine delivers a powerful torque
of 550 Nm to the drive axles, which helps the model to
accelerate from zero to 100 km/h in 4.4 seconds with a top
speed of 289 km/h.
of 90 degrees, and the engine block has been scaled down
to 9.5 kilograms. In combination with the new eight-speed
double-clutch transmission, Porsche has reduced the fuel
consumption of its latest models by up to 16 per cent, while
at the same time increasing the power. The new transmis-
sion design combines increased torque capacity, the ideal
number of gears, optimum gear gradation and spread
with excellent shift performance and maximum efficiency
plus outstanding economy. In accordance with the NEDC,
the fuel consumption figures for the Panamera Turbo are be-
tween 9.3-9.4 l/100 km, between 8.1-8.2 1/100 km for
the Panamera 4S and between 6.7-6.8 l/100 km for the
Panamera 4S Diesel. All three vehicles have been launched
with all-wheel drive.
59
Performance Research and development
2016
58
2012 2013 2014 2015
a driving machine that follows the Porsche principle of purity.
The special edition model, limited to just 991 units, weighs
just 1,370 kilograms with a full tank of fuel, making it the
lightest 911 and a true high-performance sportscar, synony-
mous with consistent lightweight construction, maximum
performance and an unfiltered driving experience. The 911 R
is particularly suited to winding roads. The carbon bonnet
and wings as well as the magnesium roof lower the vehicle's
centre of gravity. The specially configured rear-axle steering
guarantees extremely responsive steering behaviour and
precise handling at a high level of driving stability. The
Porsche Stability Management (PSM) control systems have
been specially optimised for the 911 R. The six-cylinder
flat engine, which was already featured in the 911 GT3 RS,
with four-litre displacement, 368 kW (500 hp) and 460 Nm
of torque, accelerates the vehicle from zero to 100 km/h
in 3.8 seconds, with a top speed of 323 km/h. Total fuel
consumption in the NEDC amounts to 13.3 l/100 km.
With its high-speed, six-cylinder naturally aspirated engine
and manual six-speed sports gearbox, the Porsche 911 R is
The new 911 R: a streamlined and classically
designed sportscar
The 718 Boxster and 911 R celebrated their global debuts
at the Geneva Auto Show in March in conjunction with the
slogan "powerful and efficient". Thanks to the redeveloped
four-cylinder flat engine with turbocharging, the latest
generation of the 718 Boxster now delivers 26 kW (35 hp)
more power at a fuel consumption level reduced by 13 per
cent in accordance with the NEDC. This is the first time that
Porsche has built sportscars with four-cylinder flat engines
since the mid-1980s. Furthermore, Porsche now offers
the mid-engine Roadsters in a fresh design: A more prominent
nose section, a more masculine front with larger cooling
air intakes and redesigned Bi-Xenon main headlights set this
sportscar apart. The wider rear end is decorated by tail
lights with three-dimensional LED technology and four-point
brake lights. Sporty wings and door sills define the side
view of the vehicle, and a redesigned dashboard frames
the cockpit.
Cayenne with modern infotainment
Thanks to the redeveloped four-cylinder flat engine with
turbocharging, the latest generation of the 718 Boxster now
delivers 26 kW (35 hp) more power at a fuel consumption
level reduced by 13 per cent.
1.95
2.15
2.21
1.58
in billion euro
Research and development costs
With a two-litre displacement, the 718 Boxster generates
220 kW (300 hp), while the 718 Boxster S performs at
257 kW (350 hp) with a displacement of 2.5 litres. Porsche
has also installed a turbocharger with variable turbine
geometry in the S model - the same used in the 911 Turbo.
Turbocharging increases the torque, which is how the two-
litre engine of the 718 Boxster is able to offer torque of
380 Nm, while the 718 Boxster S reaches up to 420 Nm.
As a result of the Porsche double-clutch transmission (PDK)
and the Sport Chrono Package, the 718 Boxster can go
from zero to 100 km/h in 4.7 seconds, while the S model
can do it in even less time: 4.2 seconds. These vehicles can
reach top speeds of 275 km/h and 285 km/h respectively.
Maximum performance around bends is ensured thanks
to the sports chassis with ten per cent more direct electro-
mechanical steering and the enhanced brakes. In accord-
ance with the NEDC, the fuel consumption level for the
718 Boxster is 6.9 l/100 km and for the 718 Boxster S it
is 7.3 l/100 km.
%
At the North American International Auto Show in Detroit in
January 2016, Porsche presented the new top models from
its 911 model line to the global public: the 911 Turbo and
911 Turbo S. These high-performance sportscars are 15 kW
(20 hp) more powerful than their predecessors and feature
a sharper design and improved equipment. The biturbo six-
cylinder engine with 3.8-litre displacement in the 911 Turbo
now delivers 397 kW (540 hp), while the 911 Turbo S
delivers 427 kW (580 hp). Porsche is still the only manufac-
turer to use turbochargers with variable turbine geometry in
conjunction with petrol engines. These engines are now
equipped with a dynamic boost function to further enhance
the responsiveness of the vehicles, meaning that the boost
pressure is sustained during a load change, i.e. when the
accelerator pedal is released briefly. As a result, there is virtu-
ally no delay in the engine's response when the accelerator
pedal is actuated again. The 911 Turbo S Coupé acceler-
ates to 100 km/h in 2.9 seconds and has a top speed of
330 km/h, whereas the 911 Turbo reaches 100 km/h in
3.0 seconds and has a top speed of 320 km/h. In accord-
ance with the New European Driving Cycle (NEDC), the
Coupés have a fuel consumption of 9.1 l/100 km, while the
Cabriolets have a fuel consumption of 9.3 l/100 km. This
equates to a reduction of 0.6 litres per 100 kilometres for
all variants compared to the predecessor models.
-13%
A high-resolution seven-inch touchscreen will be included as
standard in all future Cayenne models. This model line has
also featured the latest generation of Porsche Communica-
tion Management (PCM) since March 2016. The screen's
user interface, which is similar to a smartphone, can be
operated intuitively using multi-touch gestures. The user is
able to integrate their smartphone or storage device via
various interfaces and if iPhone and PCM are connected, it is
also possible to use Apple Carplay®. Furthermore, the
Cayenne is now equipped with a navigation module offering
voice control and a high-resolution map display - now also
available in 3D for the first time depending on the region.
Sporty and efficient: the Macan with new drive
The Macan debuted at the New York International Auto Show
at the end of March 2016 with an in-line four-cylinder turbo
engine with up to two bar boost pressure, charge-air cooling,
direct petrol injection and variable valve timing. The latest
entry-level model in the family of compact SUVS offers up
to 185 kW (252 hp). The two-litre turbocharged engine with
a torque of 370 Nm accelerates the Macan from zero to
100 km/h in 6.7 seconds. The Porsche double-clutch trans-
mission (PDK) transforms the power of the engine into a
top speed of 229 km/h. In accordance with the NEDC, the
vehicle has a fuel consumption level of between
7.2 l/100 km and 7.4 l/100 km.
Performance Research and development
With the new generation of the Panamera, Porsche is intro-
ducing its redeveloped V8 petrol engine with turbocharging
to the road. The objective: enhanced performance, in-
creased efficiency, greater power. The new generation offers
three high-performance biturbo V-engines with a bank angle
An early highlight of the 2016 financial year for Porsche
was the spectacular world première of the new Panamera in
Berlin at the end of June. The second generation of the
Panamera Gran Turismo distinctively combines two seemingly
opposing concepts: sportiness and luxury. The entire vehicle,
including its engine and transmission, has been completely
redeveloped. The Panamera is a technology champion with
an optimised design that boldly emphasises the ambition
of a sporty luxury saloon. The flatter front section, adjusted
side sections, a roof line that is even more dynamic, the
flyline and other specific design details such as the three-
dimensional tail lights and multi-material lightweight con-
struction of the vehicle body draw parallels with the iconic
911 sportscar.
The new Panamera combines performance
and comfort
in combination with the redeveloped tyres. In the latest
718 Cayman, Porsche has placed great emphasis on preci-
sion and agility. The enhanced driving dynamics are under-
lined by the vehicle's taut proportions, accentuated air
intakes on the front and sides and a low silhouette. The inte-
rior also has a number of new features: The sports steering
wheel in the 918 Spyder design and the individually ex-
pandable Porsche Communication Management (PCM) are
available as standard equipment.
The ten per cent more direct steering and half-inch wider
rear wheels result in even better stability around corners
Porsche has adjusted the brake system of the previous
Cayman S to the increased performance of the 718 Cayman.
The four-piston callipers of the 911 Carrera have been-
installed on the front axle of the latest S model with six-milli-
metre thicker brake discs.
to the performance figures of the new generation of
718 Boxster.
per 100 kilometres in the NEDC. The acceleration, top
speed and torque of the enclosed two-seaters are identical
The second global debut at the Paris Motor Show was the
911 GT3 Cup. The specially designed four-litre flat engine
of the near-series GT racing car with direct petrol injection
and variable inlet and outlet camshaft control generates
357 kW (485 hp) and impresses with its reduced mainte-
nance costs and improved durability of its naturally aspirated
engine when in racing mode. For the first time in the world's
most manufactured GT racing car, a valve drive with rigidly
mounted rocker arms and a central oil feed have been
installed. Ready to race, the latest 911 GT3 Cup weighs
no more than 1,200 kilograms as a result of the intelligent
aluminium steel composite construction. The optimised
aerodynamics at the front and rear end provide the one-seater
with greater traction.
New generation of the best-selling racing car
in the world
In November 2016, the Volkswagen Group announced that
it was planning a joint venture in collaboration with Audi,
Porsche, the BMW Group, Daimler AG and Ford Motor
Company. Together, the partners are hoping to establish the
most powerful charging network for electric vehicles in
Europe. To kick off the joint venture, the partners signed a
Memorandum of Understanding. The planned infrastructure
will support a charging capacity of up to 350 kW, enabling
charging times that are considerably shorter than those
possible with current fast charging networks. Around 400
stations are due to be constructed in 2017 as the first step
in the plan. More than a thousand high-performance charging
stations are planned by 2020, which will considerably
increase the long-distance travel capability and appeal of
electric vehicles. Porsche is thereby actively shaping the
future of sustainable mobility - not only by developing environ-
mentally friendly plug-in hybrid vehicles and purely electric
models, but also by building the necessary infrastructure.
Joint venture planned for super-fast, high-performance
charging network
60
60
S model provides 257 kW (350 hp) with 2.5-litre displace-
ment. Fuel consumption is between 8.1 litres and 6.9 litres
At the end of April 2016, Porsche presented the latest
718 Cayman at the Auto China Beijing Motor Show. The re-
developed fourth generation of the mid-engine sport Coupé
offers a similar thrill to the 718 Boxster, with a four-cylinder
flat engine and turbocharging. The result: 18 kW (25 hp)
more power. The entry-level variant of the 718 Cayman pro-
vides 257 kW (300 hp) with two-litre displacement and the
718 Cayman impresses with striking design and
muscular appearance
00
Sivs728
With an empty weight of 1,770 kilograms, the Macan is the
lightest SUV offered by Porsche. Together with the agile
chassis and precise steering, the standard active all-wheel
drive Porsche Traction Management (PTM) ensures that the
Macan's engine power translates into sporty driving dynamics.
The new V8 petrol engine in the Panamera is a symbol of
power and agility. The Panamera Turbo top-level version
generates 404 kW (550 hp) from a mere four-litre displace-
ment. This displacement reduction of 0.8 litres demostrates
the continuation of Porsche's successful downsizing
strategy that has already been deployed in its front engine
vehicles and subsequently extended to its flat engines.
The engine reaches 770 Nm of torque at between 1,960
and 4,500 revolutions per minute (rpm), accelerating the
Panamera Turbo from zero to 100 km/h in 3.8 seconds
to a top speed of 306 km/h. For the first time ever, the drive
of this model features adaptive cylinder control. At a speed
range of between 950 rpm and 3,500 rpm and a torque
limit of up to 250 Nm, this eight-cylinder engine transforms
seamlessly into a four-cylinder engine by deactivating four
of its cylinders, reducing fuel consumption in the process.
The photovoltaic car port is Porsche AG's second pilot project
in 2016 aimed at developing an environmentally sound
design for Porsche dealerships. Developed in collaboration
with CIP Architekten Ingenieure in Stuttgart, the car port
makes it possible for plug-in hybrid and electric vehicles to
be charged using locally generated, renewable energy.
The intricate support structure with integrated Porsche
Universal Chargers (AC) and a roof made from semi-transpar-
ent dual glass photovoltaic modules generates more than
3,000 kilowatt hours of energy per year - enough electricity
to charge the battery of a Panamera 4 E-Hybrid more than
200 times. This equals a range of approximately 10,000 kil-
ometres. The photovoltaic car port celebrated its debut
on the holiday island of Sylt, allowing plug-in hybrid vehicles
leased on the island by Porsche Drive to be charged. Porsche
plans to offer this concept to all of its dealerships around the
world with a view to implementing it at a later date.
1.31
Performance Sales, Production, Procurement
The consideration of sustainability aspects in the supply
chain is a key focus area for Porsche. The company has
been an active part of the group-wide sustainability procure-
ment network and fully involved in the "sustainability in
supplier relations" concept of the Volkswagen Group since
as far back as 2013.
Sustainability in supplier relations
Since the end of 2015, virtually all brands and companies
that make up the Volkswagen Group have been following
standardised, fully digital processes within procurement.
External partners are able to find the up-to-date information
they require in the available systems at any time. The aim
is to create a global, standardised digital network that maps
all work processes between the procurement department
and suppliers.
A crucial factor for the success of the Porsche brand is the
consistently high quality of the cars it sells. To ensure that
this requirement can be met in the long term, the implemen-
tation of an optimum quality of purchased parts across all
model lines was once again a focal point in 2016. To this
end, procurement is further expanding the activities designed
to optimise sub-supplier management. In addition, an over-
arching standard to harmonise and implement sustainability
principles in the supply chain was launched. Both the trans-
parency gained and the acceptance of our sustainability
principles are instrumental in helping to identify risk areas
at an early stage and continuing to improve quality. These
efforts were corroborated in 2016 by the extremely posi-
tive feedback from customers in the context of various
quality awards.
Ensuring product quality and sustainability
in procurement
The procurement department also made an important
contribution during the reporting period towards achieving
the company goals regarding non-production material and
services. Due to the large number of infrastructure projects
under way, investments in the 2016 financial year totalled
1,695 million euro. This development reflects the continued
growth at Porsche (2015 financial year: 1,261 million euro).
As in previous years, the material costs per vehicle were
further optimised during the 2016 financial year. The close
cooperation and early involvement of our business partners
in various cost and product workshops led to substantial
savings being made. In 2016, the material costs of Porsche
AG amounted to 4,129 million euro (2015 financial year:
3,948 million euro).
Procurement of production material and non-produc-
tion material
72
Three cornerstones were defined in order to establish
Four strategic procurement targets can be derived from the
Porsche Strategy 2025 and the global trends on the procure-
ment markets. Firstly, delivering top quality at competitive
conditions by actively developing technical and ecological
innovation processes. Secondly, ensuring efficiency for the
entire life of the products. Thirdly, guaranteeing reliability,
by ensuring constant availability of the procurement volume,
consistently high quality of the purchased parts, as well as
stable and efficient commodity flows. And fourthly, increasing
the attractiveness of the company for talented employees
and ensuring a high level of satisfaction among our employ-
ees by creating the optimum working conditions.
Another highlight of last year was the outstanding motor-
sport season in which Porsche succeeded in defending all
of the titles it had won in the FIA World Endurance Champion-
ship (WEC) in 2015. In collaboration with all specialist areas
involved, the procurement department brought the right
partners on board to ensure this success.
Outstanding events for the Porsche procurement depart-
ment during the 2016 financial year included the successful
launch of the new mid-engine 718 Boxster and 718 Cayman
sports coupés, equipped with the new four-cylinder turbo
flat engine, as well as the sales launch of the second genera-
tion of the sporty Panamera luxury saloon. A further highlight
was the 911 R. The vehicle, of which just 991 units will
be built, is a striking representation of the traditionally close
relationship between motor racing and series production.
For the procurement department of Porsche AG, 2016 was
a year filled with special challenges. The product range was
expanded significantly, and the company supplied a total
number of 237,778 vehicles to customers - a new record.
Thanks to its close, partnership-based cooperation with the
supplier industry, the procurement department was able
to maintain a constant supply of parts at all times.
PROCUREMENT
n
71
Performance Sales, Production, Procurement
70
And this push towards enhanced efficiency extends beyond
the country borders. By way of example, Porsche is employ-
ing an effective air-conditioning system at the technical
training centre in Shanghai. It utilises heat exchangers and
heat pumps to ensure simultaneous cooling and dehumidifi-
cation of the tropically warm ambient air. At the North
American headquarters in Atlanta, Georgia, the building façade
provides thermal insulation in the winter while also serving as
a heat shield in the summer. Elements of the demolished
factory previously located at the site were recycled and used
to construct the off-road track. In 2016, both projects were
awarded a gold certificate in the internationally renowned
LEED (Leadership in Energy and Environmental Design) rating
system for exceptionally ecological and efficient buildings.
Porsche is continually working on further enhancing the pro-
curement organisation and building on its strengths together
with the suppliers. We strive to be competitive and ensure
optimum performance. The fact that the Porsche Strategy
2018 has already been successfully implemented is testa-
ment to the consistency with which key topics and objectives
are pursued and realised at Porsche. Within the Strategy
2025, the procurement department will play a considerable
part in achieving the company's goals, helping to further
the positive development of recent years. In 2016, further
important foundations were laid for the future of Porsche
with over 700 award decisions.
A separate team in the Production and Logistics department
- comprising operators, planners, maintenance and environ-
mental experts is devoted to tracking down energy savings
potential in the individual plants. The paint shop at the Leipzig
plant accounts for the lion's share of these savings. When
no painting is taking place, the systems are switched to
standby mode. This measure alone achieves annual savings
of around 120,000 euro. When converted, this equates to
575 Porsche 911 Carrera vehicles covering 30,000 kilome-
tres per year in a carbon-neutral manner. In addition, Porsche
uses the waste heat from a biomass power plant in direct
vicinity of the plant premises to cover 80 per cent of the paint
shop's heat requirements without additional CO2 emissions.
Moreover, switching off the system lighting in the Leipzig
body shop during weekend downtimes produces savings of
more than 50,000 euro per year. The efficiency team also
uncovered savings potential at the paint shop in Zuffenhausen.
When maintaining the compressed air systems, any leaks
are identified and rectified even faster. This alone saves an
annual cost of 50,000 euro.
the high environmental and social standards among busi-
ness partners: mandatory sustainability requirements for
to identify and minimise risks, and processes for monitoring
and developing suppliers.
66
%
76
Financial Position
Net Assets
Financial Analysis
73
use and availability of sustainable materials. A project on the
subject of sustainable leather was also launched. At present,
the company is also consciously requesting sustainable
alternative materials from suppliers for use in future genera-
tions of vehicles.
Another focal point of the procurement strategy is the
increased use of sustainable materials. In 2016, Porsche
surveyed the main suppliers specifically regarding the
suppliers, an early detection system along the value chain
Performance Sales, Production, Procurement
For over 30 years, the Porsche procurement department
at the main plant in Zuffenhausen has worked together with
a facility for physically disabled people from the region. In
2015, Porsche entered into a further cooperation with a
workshop in Zuffenhausen, and another project was launched
in Leipzig in the 2016 reporting year. The ongoing promotion
with the implementation of these measures. In the case
of serious violations, an ad-hoc case is opened as well. In
2016, an independent service provider conducted one
audit and has scheduled two further audits. Porsche plans
to continually expand this process as part of the
Strategy 2025.
If necessary, Porsche will also provide assistance
Since the start of the reporting year, Porsche has also
had an independent audit service provider inspect selected
business partners as part of its own sustainability audits.
If violations or development potential are identified during
the audit, an action plan for improvement is agreed upon.
in place. Porsche's own ad-hoc team of experts is responsible
for the auditing, and is authorised to define and implement
further measures in serious cases. In the reporting year, two
ad-hoc cases were opened under the leadership of Porsche.
In 2016, Porsche also introduced the industry-wide Self-As-
sessment Questionnaire (SAQ) across the board for all active
suppliers of production material. The SAQ was developed
together with other automotive companies in the working
group on supply chain sustainability, coordinated by
CSR Europe.
As part of supplier monitoring, all suppliers are required to
complete questionnaires on sustainability issues as well as
submit a written statement if there are grounds for suspicion
or possible deviations from the sustainability requirements
the OECD guideline regarding the duty of care for supporting
responsible supply chains for minerals from conflict and
high-risk areas. Conflict minerals represent a major problem
area in the context of forming responsible supply chains.
Since the reporting year, suppliers must be prepared to pro-
vide information on the smelting plants and refineries that
they or their sub-suppliers use if requested.
its suppliers. The internationally recognised human rights,
the charter of the International Chamber of Commerce, the
OECD guidelines for long-term, sustainable development
and the relevant core labour laws of the International Labour
Organisation (ILO) serve as the foundation for the sustainability
requirements. Suppliers are now also expected to follow
Strict compliance with the sustainability requirements is
essential to the effective cooperation between Porsche and
of cooperation with social organisations is firmly anchored
in the corporate strategy.
Conservation of resources along with environmentally
conscious and energy-efficient activities are fixed compo-
nents of the Porsche corporate strategy. The objective of
maximum efficiency applies not only to the products, but
also to the Zuffenhausen and Leipzig plants themselves. In
2016, for example, Porsche saved around one million euro
in its production efforts thanks to careful use of resources.
Results of Operations
Expansion of environmentally friendly logistics
Inevitably, the transportation of goods to and from the plants
involves emissions such as noise and an increased use of
resources. Porsche is addressing this issue with the efficient
and continuous use of environmentally compatible transport
means. Porsche is striving towards the systematic reduction
of emissions and achieving a positive effect on its own
environmental impact. In the reporting year 2016, a Scania
diesel/LPG hybrid truck began operating on the route be-
tween Soest and Zuffenhausen. Based on an annual distance
of around 410,000 kilometres, CO2 emissions were reduced
by around 10 per cent. This equates to savings of around
22,506 kilograms per year. In 2017, the company plans to
employ further vehicles of this type on the route between
Heilbronn/Uhingen and Zuffenhausen/Kornwestheim. More-
over, preparations are currently underway in Leipzig for the
use of an electric truck between the logistics centres and
the plant. The concept phase is to be completed at the
beginning of 2017, at which point the pilot phase will begin.
Porsche is synonymous with quality, and the new quality
centre in Leipzig serves as the perfect example of the brand
identity embraced by the company. Since June 2016, Porsche
has bundled all vehicle optimisation efforts across the cen-
tre's 6,000 square metre area, all in the name of achieving
utmost perfection in production. In doing so, Porsche contin-
uously tackles the challenge of raising quality with each new
Quality at the highest level
The Panamera, Macan and Cayenne model lines roll off the
Leipzig production lines every two minutes. In three-shift
operation, the plant's technically installed capacity reaches
up to 150,000 units per year. Porsche already set new bench-
marks in Leipzig with the production of the Macan. To date,
Porsche has invested a total of 1.3 billion euro in the devel-
opment of the Leipzig site. During the fourth plant expan-
sion, the company hired 600 new employees, meaning that
the workforce exceeded the magical number of 4,000 for
the first time.
In its new body shop, Porsche is employing innovative and
energy-efficient technologies, thereby reducing its energy
consumption in a targeted manner. In the paint shop alone,
a rock-flour filter system has allowed the company to reduce
energy consumption by around 60 per cent in comparison
with a water-based system. A photovoltaic system produces
up to 800,000 kilowatt hours of electricity per year from
solar energy. This is roughly equivalent to the annual power
consumption of 150 four-person households in Western
Europe. The special cooling of the robotic welding guns
reduces annual electricity consumption by more than
365,000 kilowatt hours. This makes the Leipzig plant one
of the most environmentally friendly facilities in the world.
The world première of the Panamera sports saloon was
among the highlights of 2016. When the Panamera was
launched in 2009, the painted bodies were produced at the
Volkswagen plant in Hanover. Yet now, the entire production
process from the body shop to the paint shop - takes
New body manufacture in Leipzig
On February 1, 2016, the Supervisory Board appointed
Albrecht Reimold as the new Member of the Executive Board
responsible for Production and Logistics. Oliver Blume's
successor switched to Zuffenhausen from Bratislava. From
2012 to January 2016, the degreed engineer worked in
the Slovakian capital as Chairman of the Executive Board
and Board Member with responsibility for Technology at
Volkswagen Slovakia, where the body of the Porsche Cayenne
is manufactured. From 2009 to 2012, Reimold headed up
the Audi plant in Neckarsulm.
Change on the Executive Board
in the 2016 financial year.
New record: Porsche produced 239,168 vehicles
+2%
203,097
234,497
239,618
vehicles produced
Production volume
place at the Leipzig plant. Porsche invested 500 million euro
into this move, which involved an increase in the production
area to around 60,000 square metres and adjustments
to the assembly and infrastructure. Following the fourth up-
grade over an approximately two-year construction period,
the site is now among the most sophisticated and innovative
production facilities in the global automotive industry. One
particular highlight is the multi-material mix in the body of
the new Panamera. It is based on a high aluminium content,
which required many new joining and manufacturing proce-
dures to be implemented in the series production process.
New record: Porsche produced 239,168 vehicles in the
2016 financial year. This represents a 2 per cent increase
over the previous year. All vehicles of the 911 (31,648 units)
and Boxster (12,791 units) model lines rolled off the pro-
duction line in the Stuttgart-Zuffenhausen plant. This is also
where the Cayman (5,303 units) has been manufactured
since August 2016. That means the sportscar manufacturer
produced a total of 49,742 sportscars at its headquarters
in Zuffenhausen. At the Leipzig plant, Porsche manufactured
a total of 158,432 vehicles, representing around 66 per cent
of total production at Porsche. 97,177 units of the Macan
model line originated from Leipzig, along with 47,037 Cayenne
and 14,218 Panamera vehicles. At the multi-brand plant of
the Volkswagen Group in Osnabrück, Porsche manufactured
24,656 Cayenne vehicles. Up to August 2016, 6,788 units
of the Cayman were also produced here.
PRODUCTION
Tracking down potential savings
67
151,999
165,808
Dec. 31, 2016
68
2012 2013 2014 2015
Site development in Sachsenheim
Successful production start in Zuffenhausen
A further milestone project of 2016 is the production of the
718 Cayman. For the first time, Porsche is manufacturing
the third generation of the mid-engine sports coupé entirely
in Zuffenhausen. Going forward, Porsche will therefore
produce all two-door sportscars at its headquarters. The
last Cayman rolled off the production line of the Volkswagen
plant in Osnabrück in August. This is where Porsche manu-
factured the previous generation of this model line. The
current model line boasts higher performance thanks to the
newly developed four-cylinder flat engines with turbocharg-
ing. With the 718 Cayman, production capacity at the
Stuttgart plant has been increased from 220 to more than
240 vehicles per day.
- which is damaging to the environment - from being
generated each year.
currently preventing some 5,000 tonnes of carbon dioxide
is being operated by Abfallwirtschaft Stuttgart (AWS), a
municipal waste management operation. The project serves
as an example of the development of large-scale local
heating and district solutions with industrial partners and is
Bio-energy for the main Porsche plant in Zuffenhausen
In collaboration with the public service authorities in Stuttgart,
Porsche is making a key contribution to the energy concept
of the state capital. Stuttgart intends to be climate-neutral by
2050 at the latest. In a joint letter of intent issued with the
city's public services in the reporting year, Porsche has
declared its intentions, as a regionally headquartered compa-
ny, to switch the heat supply at the main plant in Stuttgart-
Zuffenhausen to bio district heating by the end of 2018 at
the latest. The starting point for the shared energy supply is
a new bio-waste digester that has been set up locally and
Sustainability plays a very important part in this regard. A
photovoltaic system on the roof of the engine plant produces
up to 242,400 kilowatt hours of electricity every year. This
results in savings of up to 105 tonnes of carbon dioxide per
year when compared to a conventional production facility.
The large-scale roof greening on the building also helps
to improve the air quality at the Zuffenhausen location. These
and other ecological measures, along with exceptional work-
place design and process quality, have been recognised
with top marks from the German Sustainable Building Council
(DGNB). The 28 hectare site was one of the first industrial
quarters in Germany to be awarded a gold pre-certificate
from the DGNB.
The production of a new eight-cylinder V-engine involves
6.2 hours and 110 work cycles. 95 workpiece carriers then
transport the engines along a 432 metre production line.
At full capacity, 200 eight-cylinder V-engines a day can be
produced according to the highest quality standards. Porsche
has invested some 80 million euro into the new production
facility. The company employs the latest systems and tools
as well as digitalisation and consistent data management.
By means of an electronic production network, EC tools are
adapted to the various assembly requirements, making them
practically universally deployable throughout the assembly
process. EC tools are just one of the almost 100 innovations
that Porsche has implemented in the production site. This
also includes autonomous, freely programmable forklift
trucks. Thanks to the multi-functional structure of the produc-
tion area, Porsche is well prepared for growth and future
production processes.
of the new plant commenced in 2014, a modern factory was
created across two levels covering a total of 10,000 square
metres in the western expansion zone of the company head-
quarters. With logistics located on the ground floor, engine
assembly takes place on the floor above. This efficient mesh-
ing of manufacture and automation gives rise to a flexible
production process. The eight-cylinder V-engine will initially
be used in the Panamera Turbo.
In line with the company's general growth trajectory, Porsche
is also further expanding its logistics centre in Sachsenheim.
Porsche has now developed the site for the fourth time since
it was opened in 2008 in order to increase its logistics
capacities. Construction for the latest phase began in July
2016 and is to be completed by 2018. Among other things,
Porsche is enhancing its after sales parts logistics, which
includes the installation of an automatic high-bay warehouse
with more than 40,000 new rack and 4,500 container
storage locations. The high-bay warehouse is characterised
by its much improved space utilisation.
The Macan also defended its place at the top of the rank-
ings. In its second involvement in the study, the youngest
member of the Porsche model range again secured first
place in the "Compact Premium SUV" segment. For the study,
J.D. Power surveyed more than 80,000 private individuals
90 days after receipt of their vehicle. The overall rating
is made up of 233 criteria, including "Driving experience",
"Exterior" and "Interior".
2016
SCAN
THIS CHART
Performance - Sales, Production, Procurement
vehicle model. Means of quality measurement include such
methods as the exterior and seam master jig for pilot series
qualification of body parts or the body-in-black for pilot
series qualification of sheet metal parts. Cubing is used for
the optimisation and pilot series qualification of assembly
parts as well as for the functional analysis of add-on parts in
the exterior and interior. The quality centre in Leipzig also
includes a pilot centre for building pilot series vehicles. A
total of 150 employees work at the site.
New plant for eight-cylinder engines in Zuffenhausen
Porsche has achieved a new milestone in engine construction
with the opening of the new production site for eight-cylinder
engines at the main plant in Stuttgart. Since construction
69
Top marks for perfection
The impressive levels of quality originating from Zuffenhausen
have been recognised by the latest "Initial Quality Study" con-
ducted by the US market research institute J.D. Power. In
the plant ratings for Europe/Africa, the main Porsche plant in
Zuffenhausen heads up the rankings of the American market
researchers. The 911 is the highest placed vehicle of the
entire study, which includes a total of 245 models from
33 manufacturers. In addition, the 911 once again achieved
first place in its "Midsize Premium Sporty Car" segment,
making this five victories in succession.
At the Zuffenhausen headquarters, the quality and analysis
centre has also made an important contribution to the quality
process since July 2014. Just as in Leipzig, this is an im-
portant prerequisite for ensuring ongoing and sustainable
improvement to the emotional and functional quality of
Porsche vehicles as well as their look and feel. Porsche con-
tinuously faces new challenges, particularly with regard to
trends and technologies such as digitalisation, smart mobility
and electromobility.
45
29,143
45
8,933
Capital reserves
Subscribed capital
Equity and Liabilities
32,235
2,889
8,643
2,485
43
59
145
194
329
390
1,000
7,595
7,857
Equity before non-controlling interests
3,001
2,549
3,669
Financial liabilities
749
864
Deferred tax liabilities
772
685
Other provisions
Retained earnings
2,361
Provisions for pensions and similar obligations
10,700
1,337
Equity
2
Non-controlling interests
10,698
11,979
2,796
3,213
11,980
8
647
Dec. 31, 2016
Current assets
Cash, cash equivalents and time deposits
Securities
Tax receivables
Other receivables
Other financial assets
Financial services receivables
Trade receivables
Inventories
Non-current assets
Deferred tax assets
Tax receivables
Other receivables
Other financial assets
Financial services receivables
Other financial liabilities
Other equity investments
Equity-accounted investments
Dec. 31, 2015
3,965
3,286
5,116
486
591
2,509
2,536
21,548
23,592
727
879
10
598
31
8,478
1,289
1,363
50
54
332
333
2,761
4,580
8,505
3,373
Change in inventories
776
-29
312
314
3
-1
5
-26
2,124
2,081
-1,148
-1,035
3,382
3,697
1,560
2,485
FY 2015
FY 2016
Change in financial services receivables
Change in leased assets
-220
-595
-542
405
-1,039
Property, plant and equipment
Leased assets
-1,228
Additions to capitalized development costs
-1,388
-1,438
and property, plant and equipment
Investments in intangible assets (excluding capitalized development costs),
Cash flows from operating activities
Change in other provisions
3,843
-119
-88
-827
-1,171
63
81
208
231
602
3,864
Change in pension provisions
Change in liabilities (excluding financial liabilities)
Change in receivables (excluding financial services)
3,337
Other financial liabilities
2,214
2,589
Trade payables
2,768
1,830
1,460
1,636
3,127
63
7,472
9,446
265
316
Financial liabilities
Other provisions
Provisions for taxes
Non-current liabilities
Other liabilities
77
699
Other liabilities
850
Other non-cash expense/income
Share of profit or loss of equity-accounted investments
Gain/loss on disposal of non-current assets
Depreciation, amortization and impairment losses
Income taxes paid
Profit before tax
Cash and cash equivalents at beginning of period
million euro
of Porsche AG for the period January 1 to December 31, 2016
783
Consolidated Statement of Cash Flows
Performance - Financial Data
29,143
32,235
10,971
10,809
489
557
Current liabilities
Tax payables
91
Intangible assets
2,640
million euro
Share of profit or loss of equity-accounted investments
Operating profit
Other operating expenses
3,404
3,877
-1,561
-1,140
1,286
1,206
-908
-867
-1,505
-1,703
6,092
6,381
-15,441
-15,937
21,533
22,318
8
Finance costs
-144
-142
2,640
Profit after tax
90
17
Deferred
-1,137
-1,074
-1,047
-1,057
FY 2015
3,382
Current
Income tax income/expense
Profit before tax
-22
-180
Financial result
116
-44
Other financial result
3,697
2,335
FY 2016
Distribution expenses
in million euros
Operating profit (EBIT)
The healthy cost structure and the sustainably high earnings
power of the group are also reflected in the key performance
indicators. The Porsche AG group achieved an operating
return on sales of 17.4 per cent in the past fiscal year
(prior year: 15.8 per cent). The pre-tax return on sales was
17 per cent (prior year: 16 per cent). The return on capital,
defined as the ratio of the operating result after tax to the
average invested assets of the automotive division, amounted
to 31 per cent (prior year: 31 per cent). The return on equity
after tax was 23 per cent (prior year: 23 per cent).
The financial result amounted to minus 180 million euro
(prior year: minus 22 million euro). The decrease in the
financial result was due to higher expenses from fair value
measurement relating principally to exchange rate and
interest rate hedging transactions that are not included in
hedge accounting.
Operating profit amounted to 3,877 million euro, an increase
of 473 million euro in comparison with the previous year.
Other operating income declined from 1,286 million euro to
1,206 million euro. This was primarily due to lower income
from the reversal of provisions and accruals. Other operating
expenses decreased from 1,561 million euro to 1,140 mil-
lion euro. The decline mainly reflects from lower expenses in
connection with forward exchange transactions.
Depreciation, amortization and impairment across all
functions increased to 2,081 million euro compared with
2,124 million euro in the prior year. This primarily relates
to the depreciation, amortization and impairment of
leased assets.
2015 2016
17.4
15.8
in per cent
Operating return on sales
81
Performance - Financial Analysis
Financial result
Other operating expenses
Operating profit
Other operating income
Administrative expenses
Change in equity investments
82
2,719
2,579
2,429
Cost of sales
Gross profit
Sales revenue
million euro
of Porsche AG for the period January 1 to December 31, 2016
Consolidated Income Statement
86
98
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Administrative expenses
Other operating income
Consolidated Statement of Financial Position
Consolidated Income Statement
Financial Data
83
Performance - Financial Analysis
2016
2013 2014 2015
2012
3,877
3,404
Consolidated Statement of Comprehensive Income
thereof profit attributable to shareholders
2,334
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
-437
482
992
363
-1,429
119
125
32
125
32
0
125
32
146
-435
0
0
146
-435
-144
130
338
-307
of Porsche AG as of December 31, 2016
Consolidated Statement of Financial Position
90
89
0
2,299
2,298
2,575
2,575
-36
-65
-65
-101
-182
0
-105
370
12 226
0
0
0
0
0
65
184
211
-619
Cash flow hedges
Exchange differences on translating foreign operations, before tax
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax
Transferred to profit or loss
Unrealized currency translation gains/losses
Exchange differences on translating foreign operations
Items that will not be reclassified to profit or loss
Share of other comprehensive income of equity-accounted investments that will not
be reclassified to profit or loss, net of tax
Pension plan remeasurements recognized in other comprehensive income, net of tax
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income
Fair value changes recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income
million euro
of Porsche AG for the period January 1 to December 31, 2016
Consolidated Statement of Comprehensive Income
88
87
Performance - Financial Data
-1,903
-2,370
0
Profit after tax
Assets
Transferred to profit or loss
Deferred taxes relating to cash flow hedges
2,335
2,640
FY 2015
FY 2016
Performance - Financial Data
thereof profit attributable to non-controlling interests
thereof profit attributable to shareholders
Total comprehensive income
Other comprehensive income, net of tax
Cash flow hedges, before tax
Deferred taxes relating to other comprehensive income
Items that may be reclassified subsequently to profit or loss
may be reclassified subsequently to profit or loss, net of tax
Share of other comprehensive income of equity-accounted investments that
Deferred taxes relating to available-for-sale financial assets
Available-for-sale financial assets, net of tax
Available-for-sale financial assets, before tax
Transferred to profit or loss
Fair value changes recognized in other comprehensive income
Available-for-sale financial assets
Cash flow hedges, net of tax
Other comprehensive income, before tax
-33
32
Cash received from disposal of intangible assets and property, plant and equipment
11,980
11,979
0
242
-305
0
-1,012
4,076
8,933
45
-2,371
-2,370
-2,370
1,076
1,076
Performance - Financial Data
95
Key figures
Key economic figures
There was a change in cash flows from financing activities
from minus 838 million euro in the prior year to minus
786 million euro in the current fiscal year.
The cash flows from investing activities resulted in a cash
outflow of 2,724 million euro in the reporting period follow-
ing 2,119 million euro in the prior year. Investments in intan-
gible assets (excluding development costs capitalized) and
property, plant and equipment increased from 1,388 million
euro in the previous year to 1,438 million euro in the period
under review. Additions to capitalized development costs
amount to 1,228 million euro following 1,039 million euro in
fiscal year 2015.
Cash flows from operating activities amounted to 3,864 mil-
lion euro in the 2016 reporting period following 3,843 million
euro in the prior year. The material effects resulted from
increased profit and lower income taxes paid, and conversely
higher outflows for leased assets.
FINANCIAL POSITION
Current other financial liabilities amounted to 3,337 million
euro (prior year: 3,127 million euro). This mainly results
from an increase in the liability for the profit transfer to
Porsche Holding Stuttgart GmbH.
Trade payables rose to 2,589 million euro after 2,214 million
euro in the previous year. This increase is attributable to
higher volumes of investments and business.
Current liabilities decreased from 10,971 million euro to
10,809 million euro. Current liabilities expressed as a per-
centage of total capital fell from 37 per cent in the prior year
to 34 per cent as of December 31, 2016. Current financial
liabilities declined by 938 million euro, primarily due to the
redemption of a 1,000 million euro bond in February 2016.
1,076
Deferred income tax liabilities amounted to 864 million euro
compared with 749 million euro in the prior year.
The provisions for pensions and similar obligations rose by
852 million euro. This was primarily attributable to the
change in the discount rate in Germany from 2.7 per cent to
1.8 per cent.
Non-current liabilities relate to financial liabilities, pension
provisions, deferred income tax liabilities, other financial
liabilities, other liabilities and other provisions. They rose by
a significant 1,974 million euro year on year to 9,446 million
euro. Non-current liabilities expressed as a percentage of
total capital increased from 26 per cent in the prior year to
29 per cent at the end of the fiscal year. Non-current finan-
cial liabilities grew by 1,120 million euro, mainly due to the
placement of a debenture bond in March 2016.
By contrast, pension plan remeasurements (net of tax) repre-
sented reductions in equity by 435 million euro.
with the prior-year reporting date. The profit after tax, minus
profit transfer and dividends of 269 million euro, generated
increases in equity together with currency translation
differences, changes in the cash flow hedge (net of tax) and
a capital contribution by Porsche Holding Stuttgart GmbH
amounting to 1,076 million euro.
Cost of sales
Gross profit
Distribution expenses
Key figures for personnel and social matters
Key figures for environment and energy
Non-current other financial liabilities declined by 77 million
euro. This mainly relates to marking derivative financial
instruments to market.
Payments made in respect of profit transfer and dividends
resulted in a cash outflow in the amount of 1,904 million
euro (previous year: 1,232 million euro). This was partly off-
set by a capital contribution amounting to 1,076 million euro
(prior year: 707 million euro) made by Porsche Holding
Stuttgart GmbH.
2,575
0
482
482
482
0
-619
-619
-619
32
32
32
10,700
2
10,698
0
210
184
0
-144
40
338
0
-435
2,640
2,640
-26
2,640
2,575
2,640
-65
0
32
338
0
-435
40
-65
-643
The net available liquidity of the automotive division - i.e.,
its gross liquidity less financial liabilities and excluding the
financial services business in each case - improved from
1,456 million euro as at December 31, 2015 to 1,965 million
euro as at December 31, 2016.
in million euros
3,382
17
3,697
Profit before tax
0
-22
0
-180
16
3,404
17
3,877
-7
-1,561
-5
16
Income tax income/expense
-1,057
-5
million euro
of the Porsche AG Group
Results of Operations
The personnel expenses across all functions of the
Porsche AG group increased from 2,605 million euro to
2,875 million euro. The average number of employees
during the year rose by 2,710 to 26,251.
867 million euro. In relation to sales revenue, distribution ex-
penses increased slightly to 8 per cent (prior year: 7 per cent),
while administrative expenses remained level at 4 per cent.
Distribution expenses rose from 1,505 million euro to
1,703 million euro due to the higher volume of sales. Admin-
istrative expenses decreased from 908 million euro to
The cost of sales increased in line with revenue to
15,937 million euro (prior year: 15,441 million euro), which
represents 71 per cent of sales revenue (prior year: 72 per
cent). In absolute terms, the cost of sales rose by 496 million
euro or 3 per cent. This disproportionately small increase
was due to lower depreciation, amortization and impairment
of intangible assets and property, plant and equipment, as
well as lower research and development costs recognized in
profit or loss due to the increase in the capitalization rate
to 56 per cent (prior year: 48 per cent). The disproportionately
small increase in the cost of sales caused the gross margin
to increase from 28 per cent to 29 per cent.
-1,140
Consolidated revenue at the Porsche AG group amounted
to 22,318 million euro in the reporting period (prior year:
21,533 million euro). In the last financial year, Porsche AG
delivered 232,041 new vehicles. This corresponds to a
6 per cent increase in units sold compared with the previ-
ous year. The principal contributor to the increase in sales
and revenue was the Macan model, with 97,105 units sold.
In terms of regional figures, the Chinese market has shown
particularly positive development, with 67,908 vehicles sold.
This corresponds to a 17 per cent increase in units sold.
RESULTS OF OPERATIONS
11
2,335
12
2,640
Profit after tax
-1,047
The Porsche AG group's profit after tax increased by
305 million euro from 2,335 million euro in the correspond-
ing prior-year period to 2,640 million euro in the reporting
period. The tax rate in the reporting period was 29 per cent
(prior year: 31 per cent).
Sales revenue
6
5
%
FY 2015
%
FY 2016
80
Performance - Financial Analysis
79
SCAN
THIS CHART
78
2013 2014 2015 2016
2012
21,533
22,318
17,205
13,865 14,326
22,318
100
-15,937
-71
1,206
-4
-908
-4
-867
-7
-1,505
1,286
-8
28
6,092
29
6,381
-72
100
21,533
-15,441
-1,703
0
0
3,806
Total comprehensive income
Profit after tax
Other comprehensive income
Taxes recognized in otherm comprehensive income
Financial instruments pursuant to IAS 39
Revaluations from pension plans
Effects of currency translation
As of January 1, 2015
of Porsche AG for the period January 1 to December 31, 2016
Consolidated Statement of Changes in Equity
million euro
93
Performance - Financial Data
92
-2,566
-2,296
-5,317
-5,499
2,752
Capital contribution
Profit transfer and dividends
As of December 31, 2015
As of January 1, 2016
Cash flow
hedges
Securities
marked to
market
Revaluations
from pension
plans
Other comprehensive income
Accumulated
profit
Retained earnings
reserves
Capital
Subscribed
capital
3,203
94
Profit transfer and dividends
Capital contribution
Total comprehensive income
Profit after tax
Other comprehensive income
Taxes recognized in other comprehensive income
Financial instruments pursuant to IAS 39
Revaluations from pension plans
Effects of currency translation
As of December 31, 2016
Currency
translation
267
Net liquidity
-1,232
-1,904
707
1,076
-2,119
-2,724
Repayment of bonds
Proceeds from issuance of bonds
Profit transfer and dividends
Capital contributions
Cash flows from investing activities
261
-96
Change in loans and time deposits
-4
-17
Change in investments in securities
77
88
2,707
2,536
-3,582
-2,343
Total third-party borrowings
Securities, loans and time deposits
Gross liquidity
2,485
2,834
Cash and cash equivalents at end of period
2,485
2,834
Cash and cash equivalents at end of period
886
369
354
39
-5
Effect of exchange rate changes on cash and cash equivalents
-838
-786
Cash flows from financing activities
-506
917
Change in other financial liabilities
Net change in cash and cash equivalents
-577
Sales revenue
-307
146
65
65
130
0
-65
-437
-437
-437
0
211
211
211
C
125
9,599
9,596
125
85
-336
-723
3,375
7,150
45
equity
interests
Group
Equity-accounted
investments
125
Noncontrolling
Equity before
noncontrolling
interests
-36
7,857
45
10,700
2
10,698
210
-643
0
-577
3,806
7,857
45
-1,905
125
-1,903
707
707
707
2,299
2,298
125
-307
146
2,334
2,335
2,334
2,334
-36
-1,903
Section manager, company and industry policy, Executive Board of the IG Metall trade union
Uwe Hück*
Chairman
Fuel con-
Fuel con-
Power
Power
output [kW] [hp]
Model
(combined)
[g/km]
Model
Emission and Consumption Information
107
106
*Employee representative
Deputy chairman of the works council Zuffenhausen/Ludwigsburg/Sachsenheim
Member of the SE works council of Porsche Automobil Holding SE
Head of shop stewards' committee
Member of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Member of the works council of Porsche Automobil Holding SE
Member of the group works council
Werner Weresch*
Head of Drivetrain Division at Porsche Engineering Services GmbH
Axel Weyland*
Press officer for the IG Metall trade union - Stuttgart Administrative Office
Jordana Vogiatzi*
Vice president of Human Resources, Management and Production
Diplom-Ingenieur (FH)
Peter Schulz*
Manager responsible for members and finances of the IG Metall trade union, Stuttgart
Hansjörg Schmierer*
Member of the works council of Porsche Automobil Holding SE
Member of the group works council and deputy chairman of the general works council
Chairman of the Weissach works council
Manfred Pache*
Fuel con-
CO₂
sumption
(urban)
Deputy Chairman
Chairman of the general and group works council of Dr. Ing. h.c. F. Porsche AG
Chairman of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Deputy chairman of the works council of Porsche Automobil Holding SE
Dr Hans Michel Piëch
Lawyer
Dr Ferdinand Oliver Porsche
Investment management
Hans-Peter Porsche
Engineer
Hans Dieter Pötsch
Diplom-Wirtschaftsingenieur
Chairman of the Executive Board of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Matthias Müller
Chairman of the Executive Board of Volkswagen AG
Tanja Jacquemin*
Dr rer. pol. h.c. Francisco Javier Garcia Sanz
Betriebswirt
Frank Witter
Member of the Executive Board of Volkswagen AG
with responsibility for Finance and Controlling
Dr Karlheinz Blessing
Member of the Executive Board of Volkswagen AG
with responsibility for Human Resources and Organisation
Dr Hans Peter Schützinger
Member of the Board of Management of Porsche Holding GmbH
Wolfgang von Dühren*
Head of Sales Planning
Antonio Girone*
Deputy chairman of the group works council
Member of the general works council
sumption
Member of the Executive Board of Volkswagen AG
with responsibility for Procurement
Member of the general works council of Dr. Ing. h.c. F. Porsche AG
100
The key figures concerning deliveries and production relate to the Porsche Group
(including subsidiaries).
Employees exempt from wage agreements and executive employees
11 We do not report on the average training hours per employee and year. This information is not
essential to us as it is not relevant for management. The closing dates for the 2014 and 2015 key figures
were 10/02/2015 and 05/02/2016.
SCAN
THIS CHART
Number of accidents, lost days and fatalities ¹)
2016
2015
2014
Porsche AG
12.2%
12.0%
12.0%
Porsche Leipzig GmbH
0.8%
1.0%
1.0%
"We do not report on minorities, as we are not permitted to collect this data due to personality rights.
102
Accidents 2
Lost days³)
Fatalities
"The closing dates for the 2014 and 2015 key figures were 15/01/2015 and 14/01/2016. It is not possible to report
on employees from temporary employment agencies and external companies, or independent contractors.
Employees subject to wage agreements
21 Non-serious injuries resulting from minor accidents are not included in the report. Accidents not resulting in lost days
(calendar days) count as minor accidents.
Distribution of participants by employee category
Female
22,401
13,409
3,994
3,667
3,061
2016
2015
2014
2,872
2,483
17,363
15,753
2,200
14,270
18,312
16,419
14,804
1,923
1,817
1,666
"Employee turnover is not broken down by age group, gender and region. These figures are not essential to us as they are not relevant for management.
The key figure is also calculated without including fixed-term employment contracts, employees entering into receipt of pensions and semi-retired workers.
Training programme participants ¹)
Total number of participants
Male
24,481
14,569
31 Working days are counted as lost days (usually Mo-Fr); the day of the accident is not included (>= 1 lost calendar day).
Performance - Key figures
165
247
1,957
2,542
2,605
1
0
0
2016
2015
2014
Approx. 5.0
Approx. 4.6
Approx. 6.3
103
Further Information
The Supervisory Board
Emission and Consumption Information
GRI Content Index
Porsche in Figures - Brief Overview
The Supervisory Board
171
Donations made in million euro
2014
2016
0.60%
0.60%
0.76%
2016
2015
2014
21,798
21,731
3,461
3,768
16,764
2,931
18,337
17,963
13,833
90.7%
85.8%
79.4%
9.3%
14.2%
20.6%
SCAN
THIS CHART
2015
16,241
27,612
2014
15,468
1,957
1,681
1,296
2015
SCAN
THIS CHART
2014
1.12
Total¹)
43.57
100%
42.73
100%
44.30
100%
Waste disposal
4.36
10%
7.26
17%
17,121
7.70
19,312
18,802
SCAN
THIS CHART
Volume of waste in t
Total
1.04
Waste for recycling
Waste for disposal
0.96
0.98
Investments in environmental protection in euro
2016
2016
2015
2014
668,606
594,427
645,568
588,050
577,950
515,578
2016
2015
2014
21,269
16,764
17%
1.07
Emissions control
Total workforce
Porsche Group (including subsidiaries)
Of which Porsche AG")
Of which Porsche Leipzig GmbH"
"The specified employee figures are based on reports by region
(Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
Employee structure
Employees by gender
Female
Male
Employees by type of employment ¹)
Employees subject to wage agreements
Employees exempt from wage agreements and executive employees
"Due to the equal payment and attractive framework conditions, the number of temporary employees
has not been reported separately.
Proportion of foreign employees¹)
Employee turnover ¹)
2016
2015
2014
2016
2015
Unless specified otherwise, the key figures shown below concerning personnel and social matters relate in principle to
Porsche AG and Porsche Leipzig GmbH. A detailed overview of the key figures can be found in the Porsche Newsroom:
www.newsroom.porsche.com/reports
Key figures for personnel and social matters
101
Performance - Key figures
10.89
25%
12.82
30%
12.90
30%
Remedy costs
7.84
18%
11.11
(extra-urban) (combined)
26%
26%
1.09
Prevention
20.48
47%
11.54
27%
12.30
27%
"Investments at the Zuffenhausen and Weissach sites have been included in calculations
11.40
11 The values published in the 2014 key figures update have been partially corrected.
2014¹)
2015
86,016
97,177
Vehicles
Macan
1) Suppliers are considered to be local if they are based in the EU.
Zuffenhausen and Leipzig are considered the main business sites.
23,211
21,978
24,882
Vehicles
Boxster Cayman
545
Expenditure for local suppliers at main business sites¹)
Proportion of allocated purchasing budget spent on local suppliers
31,590
203,097
234,497
31,373
375
Vehicles
918 Spyder
31,648
Vehicles
911
239,618
59,363
Vehicles
Cayenne
Vehicles
2016
99%
99%
98%
2014
2015
2016
Based outside the EU
2.0%
4.3%
Based outside the EU
98
Since August 1, 2012, Volkswagen AG has been the sole shareholder of Porsche Holding Stuttgart GmbH, which holds 100 per cent of
the share capital in Porsche AG. Dependency agreements and profit transfer agreements exist between Porsche Holding Stuttgart GmbH
and Porsche AG, as well as between Porsche AG and its major domestic subsidiaries. The basis of consolidation at Porsche AG includes a
total of 105 fully consolidated companies, with 25 headquartered in Germany and 80 abroad.
(G4-17)
Basis of consolidation
22,383
15,055
14,218
Vehicles
66,005
79,700
71,693
Panamera
Total
"Based on the creditor's billing address.
Based in the EU
22,663
23,620
Vehicles
Boxster/Cayman
301
189,849
30,510
31,350
566
32,365
44
Vehicles
918 Spyder
Vehicles
911
225,121
237,778
Vehicles
Total
2014
2015
2016
Deliveries
The key figures concerning suppliers relate to Porsche AG.
23,597
Macan
Vehicles
95,642
98.0%
Suppliers of non-production materials
Based in the EU
95.7%
Suppliers of production materials
Supplier origin 2016¹)
2014
2015
2016
Production
2015
24,864
15,240
Vehicles
Panamera
65,941
73,119
70,867
Vehicles
Cayenne
44,636
80,216
17,207
Key economic figures
2014
100%
2016
Indirect energy consumption according to primary energy sources in MWh
A method for calculating Scope 3 emissions in logistics is currently under development.
21 The values published in the 2014 key figures update have been partially corrected.
"The emissions indicated relate only to business trips, i.e. made by train (Porsche AG only) and plane.
52,585
1,491,297
53,530
1,504,843
1,385,573
Fuel (in litres)
64,603
0.27
0.27
0.3
Weight of dust emissions
184,809
199,443
217,104
104.08
110.05
116.93
Weight of volatile organic compounds (VOC)
250,219
2015
265,915
2014³)
Total 21
2016
Indirect energy consumption in MWh/vehicle (Porsche production sites only)
2014¹)
2015
2016
Direct energy consumption in MWh/vehicle (Porsche production sites only)
3) The values published in the 2014 key figures update have been partially corrected.
Water consumption (drinking water)
Volume of waste water
21 The indirect energy consumption is comprised of electrical energy and district heating.
"The direct energy consumption is comprised of gas, combustible gas for manufacturing processes,
heating oil, special energy products and fuel.
56,996
59,796
63,350
Other sites
Fresh water and waste water in m³
263,855
206,859
222,573
233,523
Production sites
282,369
296,873
SCAN
THIS CHART
293,623
Other sites
Production sites
31,466
34,184
Other sites
104,742
110,795
129,183
Production sites
136,298
142,261
163,367
The key figures shown below concerning environment and energy relate to Porsche AG and Porsche Leipzig GmbH. In some cases,
a distinction is made between production sites (Stuttgart-Zuffenhausen and Leipzig incl. administration) and other sites (Weissach and
Ludwigsburg). A detailed overview of the key figures can be found in the Porsche Newsroom: www.newsroom.porsche.com/reports
Direct and indirect GHG emissions in t CO, equivalent (Scope 1 and 2)
Total
20142)
2015
2016
Emissions in t
Key figures for environment and energy
99
Performance - Key figures
100%
100%
31,556
Direct GHG emissions in t CO₂ equivalent (Scope 1)
53,136
49,659
Total¹)
0.25
0.25
0.28
SOX emissions
37.98
40.37
45.01
NOX emissions
2014³)
Supplier screening based on environmental criteria
Proportion of screened suppliers
2015
Direct energy consumption according to primary energy sources in MWh
6,515
10,650
16,204
Other indirect GHG emissions (Scope 3)")
89,395
92,602
110,231
Indirect GHG emissions in t CO₂ equivalent (Scope 2)
46.903
2016
sumption
Dr Wolfgang Porsche
Diplom-Kaufmann
Full
9.8-9.5* 229-223*
6.8-6.6* 179-173*
6.2-6.0*
8.0-7.8*
7.2-7.0* 8.2-8.0* 215-209*
8.3-8.1* 10.0-9.8* 234-228*
8.9-8.7* 11.5-11.2* 267-261*
8.9
15.9
570
419
7.8-7.6*
13.0-12.4*
10,3-10,1*
13.2-12.9*
15.9-15.5*
520
11.5
382
324
385
283
420
309
262
193
Cayenne Turbo S
440
267
272
370
Model
184
8.0
6.7
10.4
420
309
911 Carrera 4S Cabriolet PDK
Plug-in hybrids
208
9.0
6.8
12.6
420
309
182
7.9
6.5
10.3
206
8.9
6.9
12.4
309
911 Carrera 4S Cabriolet
911 Carrera 4 Cabriolet PDK
911 Carrera 4 Cabriolet
911 Carrera 4 GTS PDK
911 Carrera 4 GTS
911 Carrera 4S PDK
204
8.9
6.8
12.4
420
309
911 Carrera 4S
Cayenne Diesel
177
7.7
6.3
10.1
420
911 Carrera 4 GTS Cabriolet
10.3
7.9
370
272
Cayenne Turbo
192
8.5
7.1
10.9
450
331
Cayenne GTS
Cayenne S Diesel
Cayenne S
216
9.5
7.4
13.0
450
331
180
6.6
370
331
13.3
7.6
13.3
450
331
911 Targa 4 GTS
56
15.9
2.5
9.7
462
Panamera 4 E-Hybrid Executive
184
8.0
6.7
10.4
420
309
911 Targa 4S PDK
340
220
Panamera 4 E-Hybrid Sport Turismo
340
397
911 Turbo
66
16.2
2.9
680
500
Panamera Turbo S E-Hybrid
196
8.7
7.3
11.2
450
331
911 Targa 4 GTS PDK
56
15.9
2.5
462
56
15.9
2.5
462
output [kW]
Power
206
8.9
6.9
12.4
370
272
911 Targa 4
196
8.7
7.3
11.2
450
331
911 Carrera 4 GTS Cabriolet PDK
220
9.7
7.6
Power
[hp]
450
Fuel con-
sumption
(combined)
340
Panamera 4 E-Hybrid
208
9.0
6.8
12.6
420
309
911 Targa 4S
182
7.9
6.5
10.3
370
272
911 Targa 4 PDK
combined
[g/km]
CO₂2
consumption emissions
[kWh/
100 km]
[I/100 km]
Power
272
911 Carrera 4 PDK
Cayenne
190
8.3
6.3
11.7
370
272
911 Carrera S Cabriolet
911 Carrera Cabriolet PDK
Panamera 4S Sport Turismo
911 Carrera Cabriolet
911 Carrera GTS
911 Carrera S PDK
911 Carrera S
911 Carrera PDK
911 Carrera
911 (991 II)
243
Panamera 4 Sport Turismo
911 Carrera GTS PDK
324
330 10.0-9.9*
440 10.4-10.3*
272
6.7-6.6*
6.9-6.8*
7.4-7.3*
5.9-5.8*
7.9
422
310
Panamera 4S Diesel Sport Turismo
199
8,7
6,6
12.2
420
309
550 13.1-12.9*
404
Panamera Turbo Sport Turismo
169
7.4
6.0
9.9
370
Panamera Sport Turismo
296
12.7
8.9
12.9-12.8*
13.1-12.9*
550
404
Panamera Turbo Executive
911 (991 I)
550
404
Panamera Turbo
440 10.4-10.3*
324
Panamera 4S Executive
167
7.3
6.0
9.5
350
257
718 Boxster S PDK
440 10.2-10.1*
911 R
7.9-7.8* 180-178*
368
20.1
19.2
500
368
911 GT3 RS
6.8-6.7* 178-176*
9.5-9.4* 217-215*
9.4-9.3* 214-212*
8.3-8.2* 189-187*
8.2-8.1* 186-184*
7.9-7.8* 180-178*
7.8-7.7* 177-175*
6.5-6.4*
6.7-6.6*
6.8-6.7*
6.9-6.8*
7.3-7.2*
7.4-7.3*
5.9-5.8*
7.9
422
310
Panamera 4S Diesel
308
13.3
9.3
500
8.3-8.2* 189-187*
9.5-9.4* 217-215*
6.8-6.7* 178-176*
309
7.3
12.9
450
331
911 Carrera GTS Cabriolet
294
Macan Turbo
178
7.8
6.5
10.2
420
309
911 Carrera S Cabriolet PDK
7.4-7.2* 172-167*
9.0-8.7* 212-204*
6.3-6.1* 164-159*
9.2-8.8* 215-207*
7.8-7.4*
360 11.8-11.4*
265
Macan GTS
9.4
202
214
324
201
8.7
6.7
12.2
370
272
911 Carrera 4
190
8.4
7.0
10.8
450
331
911 Carrera GTS Cabriolet PDK
9.7-9.4* 224-217*
8.0-7.7*
9.2-8.9* 216-208*
7.8-7.5*
400 11.8-11.5*
440 12.6-12.3*
Macan Turbo Performance Package
540
8.8
12.3
Macan
188
8.3
6.9
10,7
450
331
Macan
212
9.4
7.3
12.9
450
331
174
7.7
6.4
10.1
420
185
6.7
252
370
420
309
6.6-6.4*
7.6-7.3*
5.9-5.7*
8.6-8.4*
340 11.6-11.3*
6.9-6.7*
258
190
Macan S Diesel
172
7.5
6.2
9.9
370
272
250
Macan S
195
8.5
6.5
11.9
272
11.8
7.5
9.1
Full
→ Text/Kennzahlen
41, 73, 99
Full
Screening of suppliers using environmental criteria
Negative environmental impact
→ Index/Text
7, 16, 58-62, 108-109
EN34
36
→ Index
EN32
1회회회회회회회
1회회회회회회회회회회회회 회회
Changes in the scope and aspect boundaries
G4-23
Restatement of information reported previously
G4-22
Aspect boundaries outside the company
115
→ Index
115
Labour practices and decent work
→ Index/Kennzahlen
40-41, 44-45, 51, 102-103, 113
Full
Total workforce, new hires and employee turnover
Return to work and retention rates after parental leave
Minimum notice periods regarding operational changes
Representation in joint management-worker committees
Injuries, lost days and fatalities
LA6
→ Kennzahlen
23, 40, 44-45, 51, 102-103
LA5
→ Kennzahlen
16-23, 45, 75-95, 98, 102
LA4
18-22
LA3
→ Index
LA1
18-22
Full
Full
Full
G4-21
Aspect boundaries within the company
G4-20
Material aspects identified
G4-9
G4-8
G4-7
Countries in which the company operates
G4-6
Headquarters of the company
G4-5
Brands, products and services
G4-4
Name of the company
G4-3
→ Kennzahlen
→ Text/Kennzahlen
39, 46, 71, 101
41, 101
Full
Environmental protection expenditure and investments
EN31
Full
Environmental impact of transport and logistics
Scale of the company
Full
G4-10
G4-11
Report content and implementation of reporting principles
Entities included in the consolidated annual financial statements
Identified material aspects and boundaries
Memberships of associations and interest groups
Support from external charters, principles and initiatives
G4-19
G4-18
G4-17
Markets
Ownership structures and legal form
G4-16
G4-15
Precautionary principle
G4-14
Changes during the reporting period
G4-13
Description of the supply chain
G4-12
Coverage by collective bargaining agreements
Workforce
→ Index/Kennzahlen
Full
32
HR12
→ Text
HR10
→ Text
27, 30, 32, 34-35
27, 32, 34-35
Full
HR6
Text
32, 34-35
Full
Full
Investment agreements that include human rights clauses or underwent human rights screening
Incidents of discrimination and corrective actions taken
HR5
HR3
→ Text
27, 30, 32, 34-35, 114
Full
→ Index
98
Operations with an increased risk of child labour
Operations with an increased risk of forced labour
Screening of suppliers using human rights criteria
Grievances in relation to human rights impact
HR1
Full
Partial
12, 40-41, 50, 52-55, 103
Full
Impact on the local community
S01
Society
Index
114
Index
32, 34, 114
→ Index
→ Text
41, 73
→ Index/Text
73
→ Index/Text
73
→ Index
→ Index
Full
Full
EN30
Human rights
→ Index
→ Text/Kennzahlen
40-41, 47-48, 103
Full
Employee training
LA9
→ Index/Text
36-37, 41, 72-73, 99
→ Index/Text
40, 50
S03
Incidence and risk of work-related illness
LA7
→ Index
→ Index/Kennzahlen
40, 103
Full
→ Index
Full
→ Index
4, 10-15, 114
→ Index/Text
→ Index
40, 43-50
Full
Grievances about labour practices
LA16
→ Index
→ Text
41, 73
Partial
Screening of suppliers using labour practice criteria
LA14
12, 32, 37, 39, 60, 73,
110-111, 114
Full
→ Index
Full
→ Index/Kennzahlen
6, 10, 49-50, 102, 106-107
Full
Composition of management bodies and breakdown of employees by employee category
Remuneration structure and salaries
LA13
→ Index/Text
LA12
324
→ Text
→ Index
Financial assistance received from government
EC4
→ Index/Text
Full
Coverage of the defined benefit pension plan
EC3
→ Text
Partial
Full
Financial implications and other risks and opportunities due to climate change
→ Index/Kennzahlen
23, 41, 53-55, 75-95, 103, 113
Full
Value generated and distributed
EC1
Economic
Online version
Printed report
"Performance"
EC2
→ Index
EC5
Ratio of standard entry-level wage to local minimum wage
EN3
→ Kennzahlen
38, 73
Full
Materials used
EN1
Environmental
→ Text/Kennzahlen
→ Index/Kennzahlen
10-13, 41, 44, 103, 113
→ Index
Full
Full
Full
Spending on local suppliers at significant locations of operation
EC9
Infrastructure investments and services supported
EC7
Proportion of senior management hired from the local community
EC6
→ Index
Partial
Level of
achievement
Service
Mar 2017
Disclosures
Dr. Ing. h.c. F. Porsche AG
20.8-18.6*
3.4-3.3*
416
306
Cayenne S E-Hybrid
212
9.1
7.5
11.8
580
427
911 Turbo S
66
16.2
2.9
680
500
Panamera Turbo S E-Hybrid Executive
212
79-75*
Energy consumption within the company
911 Turbo Cabriolet
540
GRI
Materiality
GRI Content Index
Performance indicators
108
109
Performance - Further Information
*Range depending on the tyre set used
216
9.3
7.6
12.1
580
427
911 Turbo S Cabriolet
216
9.3
7.6
12.1
397
Full
41, 67-68, 70-71, 100
→ Kennzahlen
39, 101
Full
Waste by type and disposal method
EN23
→ Index/Kennzahlen
39, 101
Full
Total water discharge
EN22
→ Kennzahlen
101
Full
NO, SO, and other significant airborne emissions
Online version
Printed report
"Performance"
Level of
achievement
General standard information
EN21
→ Kennzahlen
→ Kennzahlen
Full
EN24
Full
Full
Sanctions for non-compliance with environmental laws and regulations
EN29
→ Text
6-7
Full
Full
→ Text
10-13, 38, 39, 41, 58-63
Full
Measures for mitigating the environmental impact of products
EN27
G4-2
Foreword by the Chairman of the Executive Board
G4-1
Strategy and analysis
Key sustainability effects, risks and opportunities
Company profile
→ Index
Significant spills
28, 36-40
Emissions of ozone-depleting substances
→ Kennzahlen
Full
Operational sites in protected areas
EN11
→ Kennzahlen
39, 101
Full
Total water consumption
EN8
→ Text
39, 42, 67-68, 70-71
Partial
Reduction of energy consumption
EN6
→ Kennzahlen
100
Full
Energy intensity
EN5
This business and sustainability report takes into consideration the guidelines of the fourth edition (G4) of the Global Reporting Initiative (GRI)
in accordance with the "Core" option and has been checked by the GRI within the framework of a "Materiality Disclosure Service". In the
GRI Content Index below, the degree to which the indicators have been fulfilled and their location in the printed and online versions of the
report are shown. A detailed version of the GRI Content Index is available in the Porsche Newsroom: www.newsroom.porsche.com/reports
→ Index/Text
EN20
EN12
Full
Full
Greenhouse gas emission intensity
EN18
→ Kennzahlen
71, 101
Full
Other indirect greenhouse gas emissions (Scope 3)
EN17
→ Kennzahlen
41, 70-71, 101
Full
Indirect energy-related greenhouse gas emissions (Scope 2)
EN16
→ Kennzahlen
101
Full
Direct greenhouse gas emissions (Scope 1)
EN15
→ Index/Text
Impact of activities in protected areas
→ Text/Kennzahlen
Panamera 4S
8.1
97,177
Units
Macan
23,211
21,978
24,882
Units
Boxster Cayman
545
375
Units
918 Spyder
31,590
31,373
31,648
Units
911
203,097
234,497
239,618
Units
86,016
59,363
Cayenne
Units
22,318
million euro
Sales revenue
Financials
2,165
2,605
2,875
million euro
Personnel expenses
22,401
Production
24,481
number
Employees¹)
Panamera
22,383
15,055
14,218
Units
66,005
79,700
71,693
27,612
21,533
24,864
15,240
Units
237,778
Units
911
Deliveries
FY 2014
FY 2015
FY 2016
Brief overview
Porsche AG Group
112
111
→ Index
→ Index
→ Index
Index
Performance - Further Information
110
Full
Sanctions for non-compliance with laws and regulations regarding the provision
and use of products and services
PR9
32,365
225,121
31,350
189,849
30,510
Units
65,941
73,119
70,867
Units
Panamera
Cayenne
44,636
80,216
95,642
17,207
Units
23,597
22,663
23,620
Units
Boxster/Cayman
301
566
44
Units
918 Spyder
Macan
17,205
Total assets
Equity
Contact persons
Dr Josef Arweck, Vice President Communications
Sabine Schröder, Director Corporate Publishing
www.newsroom.porsche.com/reports
Tel. +49 711 911-0
D-70435 Stuttgart
Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1
Publisher
Legal notice
114
-
In future, the combined Annual and Sustainability Report
is expected to be released annually. Previously, a completely
revised sustainability report was published every two years
- most recently in May 2016 – in addition to the annual
report. If corrections have been made to previously reported
information, this has been marked accordingly in footnotes.
(G4-22, G4-23, G4-29, G4-30)
Reporting cycle
The information on sustainability engagement at Porsche
was authored in compliance with the guidelines of the Global
Reporting Initiative (GRI G4) in accordance with the "Core"
option. In the GRI Content Index, the degree to which the
indicators have been fulfilled and their location in the printed
and online versions of the report are shown. A full external
audit of the information and key indicators for the 2016
financial year has not taken place.
Reporting standard and assurance
(G4-32, G4-33)
This report represents the first time that Porsche has
published a combined Annual and Sustainability Report.
The financial analysis, key figures and data can be
found in concise form at the end of this report and
in detail online in the Porsche Newsroom
(www.newsroom.porsche.com/reports). This is where
Porsche also provides more information regarding its
commitment to sustainability. Data was collected and pro-
cessed using various internal reporting and processing
systems. The subsequent internal consolidation and
verification contribute to the reliability of the data. The
2016 Annual and Sustainability Report relates to the period
of January 1, 2016 to December 31, 2016. Information
from before this time period has been included to ensure
that the report is comprehensive. The end date for all data
is December 31, 2016. The editorial deadline for this
report was in February 2017. All information relates to
Dr. Ing. h.c. F. Porsche AG, unless specified otherwise.
184
About this report
113
SCAN
THIS PAGE
Performance - Further Information
Daniela Rathe, Director Politics and External Affairs
Michaela Burtsche, Sustainability Management
Frank Scholtys, Director Corporate Communications
Matthias Rauter, Spokesperson, Human Resources and Sustainability
Nadine Toberer, Spokesperson, Sales and Marketing
Christian Weiss, Spokesperson, Procurement, Production & Logistics
of Dr. Ing. h.c. F. Porsche AG
FSC® C006024
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Consultation
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Elena Storm, Spokesperson, Sports Cars
Porsche Newsroom App
Porsche Newsroom provides more information and an interactive comparison of current financial and volume data.
21 Relates to investements in intangible assets and property, plant and equipment.
"As of December 31.
12,095
12,623
million euro
Cost of materials
2,114
2,427
2,666
million euro
Capital expenditure 2)
9,691
10,405
11,009
million euro
Fixed assets
9,599
10,700
11,980
million euro
26,060
29,143
32,235
million euro
12,841
→ Index/Text
Depreciation, amortization and impairment losses
2,081
Profit after tax
2,201
2,335
2,640
million euro
3,060
3,382
3,697
million euro
Profit before tax
million euro
2,719
3,877
million euro
Operating result (EBIT)
3,179
3,843
3,864
million euro
Cash flows from operating activities
1,878
2,124
3,404
27-29, 36-37, 39-40
Contents of the report and reporting period
(G4-18, G4-23, G4-28)
Values, principles, standards and norms of behaviour
300
9.9
6.0
7.4
168
911 GT3 PDK
911 GT3
368
500
19.4
8.8
12.7
288
368
500
19.7
8.8
12.9
290
220
300
220
718 Cayman PDK
718 Cayman
718
S04
→ Text
32-34
Full
Stakeholder groups engaged
G4-24
emissions
[I/100 km]
[I/100 km] [I/100 km]
Power
9.0
Power
Fuel con-
Fuel con-
output [kW] [hp]
sumption
sumption
sumption
(urban)
[I/100 km]
(extra-urban) (combined)
[I/100 km] [I/100 km]
CO₂
emissions
(combined)
[g/km]
Fuel con-
5.7
6.9
158
9.8-9.7*
6.3
7.6-7.5* 173-171*
243
330
9.9-9.8*
718 Boxster PDK
220
300
9.0
330
5.7
158
Panamera 4 Executive
243
330 10.0-9.9*
718 Boxster S
257
350
10.7
Full
6.5
6.9
G4-25
243
Panamera
718 Cayman S
257
350
10.7
6.5
8.1
184
718 Cayman S PDK
257
350
Panamera 4
9.5
7.3
167
718 Boxster
220
300
9.9
6.0
7.4
168
Panamera
6.0
Selection of stakeholders
Stakeholder engagement
32-33
→ Index
→ Index/Text
108-109
Full
Product information and labelling
PR3
→ Index
110-111, 114
Full
"In accordance" option and GRI Content Index
G4-32
Full
Assessing products for health and safety impact
PR1
115
Full
Contact point for questions about the report
G4-31
Product responsibility
114
Full
G4-33
External assurance
Partial
114
Ethics and integrity
Full
G4-56
Partial
Grievances regarding breaches of customer privacy
PR8
Partial
Standards and voluntary codes of conduct in relation to advertising
PR7
→ Text
Reporting cycle
6-7, 106-107
G4-34
Full
Sale of banned or disputed products
Corporate governance
PR6
→ Text
36, 41, 66
Full
Results of customer satisfaction surveys
PR5
Full
G4-30
Governance structure of the company
→ Text
Full
Results of stakeholder dialogue and response by the company
G4-27
→ Index/Text
Full
Political contributions
S06
→ Text
32-33
Full
32-35
Approaches to stakeholder dialogue
→ Index
Full
36
Full
→ Index
Full
→ Text
→ Index
Operations and sites assessed for risk of corruption
Communication and training on anti-corruption
Incidence of corruption and corrective actions taken
S05
G4-26
→ Text
→ Index/Kennzahlen
Legal actions for anti-competitive behaviour, anti-trust and monopoly practices
Grievances in relation to societal impact
S011
Full
S07
32
114
Date of most recent report
G4-29
Partial
Screening of suppliers using criteria relating to societal impact
S09
Full
S08
Full
Reporting period
Full
G4-28
→ Index
→ Index
Full
Report profile
114
Sanctions for non-compliance with laws and regulations
41st Porsche Tennis Grand Prix
In April the new 911 GT3 RS demonstrated the full extent of its power. Porsche works driver
Kévin Estre set a lap time for the Nürburgring (Nordschleife) of 6:56.4 minutes, the fastest
ever time for a street-legal Porsche sports car. The Frenchman slashed 24 seconds off the
previous fastest time recorded for the predecessor model. The time was measured around the
20.6-kilometre lap.
Experience the fascina-
tion of Porsche at first
hand. This slogan
typifies the new
110,000-square-metre
Porsche Experience
Centre in China, the first
centre of its kind in Asia.
Karolina Pliskova might not have her driving
licence yet but she already has her dream car.
As the winner of the Porsche Tennis Grand Prix
tournament in April, the 26-year-old Czech
was presented with a Porsche 718 Boxster
GTS to go her with her prize money and world
ranking points. Pliskova faced a tough
opponent in the American, Coco Vandeweghe,
in a high-quality, exciting final played in
Stuttgart's sold-out Porsche Arena
dreams
13
New Experience Centre in Shanghai
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
12
911 GT3 RS ON THE NÜRBURGRING-NORDSCHLEIFE
RADO
PORSCHE
MOTORSPORT
Experience the fascination of Porsche at first
hand. This slogan typifies the new Porsche
Experience Centre in China, the first centre of
its kind in Asia. The centre, located in direct
proximity to the Shanghai International Circuit,
is the sixth site in the world in this format. On
an area covering 110,000 square metres, cus-
tomers and fans can enjoy a handling course,
offroad track, restaurant, café, conference
rooms and a Porsche Driver's Selection Store.
SWITZERLAND
Ferry Porsche Foundation established
Porsche stepped up its commitment to social
responsibility in May. The sports car manu-
facturer has established the Ferry Porsche
Foundation, intended primarily to support pro-
jects in connection with education and social
issues, as well as playing an active role in
supporting children and young people. The
foundation initially has ten million euros
at its disposal, after which additional capital
will flow into the foundation annually from
Porsche AG's company profit. In December,
the Porsche Executive Board decided to
donate a further ten million euros, roughly
doubling the foundation's funding to a total
of 22 million euros.
TOURNAMENT WIN FOR KAROLINA PLISKOVA
NO
New record set for the Nordschleife
HILTRUD WERNER
New appointments to the Supervisory Board
Gunnar Kilian, Andreas Renschler and Hiltrud
Werner were appointed to the Supervisory
Board of Porsche AG with immediate effect in
May. The three members of the Board of Man-
agement of Volkswagen AG succeed Matthias
Müller, Dr Karlheinz Blessing and Dr Francisco
Javier Garcia Sanz, who have left the Board.
Gunnar Kilian had been the member of the
Board of Management of Volkswagen AG
responsible for Human Resources and Organi-
sation since April 2018. Andreas Renschler
was appointed to the Board of Management of
Volkswagen AG in February 2015, where he
is responsible for Commercial Vehicles. Hiltrud
Werner has been a member of the Board of
Management of Volkswagen AG since February
2017 and is responsible for Integrity and
Legal Affairs.
Dr. Wolfgang Porsche's 75th birthday
On 10 May, Dr. Wolfgang Porsche, Chairman
of the Porsche AG Supervisory Board, cele-
brated his 75th birthday. The youngest son of
Dorothea and Ferry Porsche, born in Stuttgart,
has been a member of the Supervisory Board
since 1978. Over the past decades he has
played a key role in all of the company's major
decision-making. Chairman of the Porsche AG
Executive Board Oliver Blume offers the
following tribute: "Wolfgang Porsche not only
bears the name of our brand. He is also our
much-loved role model. He has always been
there when needed. He has been loyal to
the company, in good times and in bad.
That's why we are full of admiration for him.
That's why we value him. That's why he
deserves our full respect."
DR. WOLFGANG PORSCHE
Collaboration with star photographer
Skilful photographs from the Porsche box:
the Netherlands Photo Museum in Rotterdam
exhibited the works of New York-based
German photographer Martin Schoeller from
May to September. Featured in this exhibition
are Schoeller's portraits of six Porsche LMP1
drivers, photos for which he has received
many awards. The collaboration with Martin
Schoeller as part of the "Big Heads" exhibition
signals the start of what will be a long-term
partnership between Porsche and the star
photographer.
7:21
CREATION OF THE FERRY PORSCHE FOUNDATION
Ferry Porsche
4BANK
DMG
14
the requirements arising from its hybridisation
and electrification strategy.
Porsche has been operating a development
site for SUVs in Hemmingen for 20 years.
In May, it acquired what had previously been
aleased site. At the same time, Porsche has
also purchased additional workshop areas and
offices for the Procurement department in
Rutesheim. Both sites function as branch
offices for the Porsche Development Centre
in Weissach and there are plans for expansion
at both locations in the years ahead. This
investment sees the company preparing for
Porsche acquires sites
STIFTUNG
The accelerator venture set up by Porsche
Digital and Axel Springer Digital Ventures was
given the name APX in April. The abbreviation
APX represents the two partner companies
and their common goal of supporting start-ups
in the early stages of their business establish-
ment and accelerating their development. APX
invests in digital business models across
sectors and industries, with a particular focus
on lifestyle, mobility, travel, finance and insur-
ance technology, media and health.
Zala
Porsche enters Formula E
PORSCHE
of demand meant that the order book was
significantly oversubscribed.
and variable interest rates on offer. A high level
of five, seven and ten years and with both fixed
Porsche issued a promissory note to the value
of 280 million euros in March. This promissory
note is structured in tranches with maturities
Nine-digit promissory loan
11
Safety Car
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
REDUCING CO2 EMISSIONS IN LOGISTICS
10
Porsche is getting on board the "green train",
laying the tracks for sustainable actions. All
transportation by rail of finished vehicles
built in Zuffenhausen and Leipzig has been
powered by renewable green energy since
the beginning of the year. This means that
Porsche's rail logistics transport is a completely
carbon-neutral process. As a result of this
change, Porsche will reduce the annual
CO2 emissions of its logistics operations by
three per cent, avoiding the generation of
more than 6,000 tons of climate-damaging
carbon dioxide.
Reducing CO₂ emissions in logistics
Marc Meurer took over as Managing Director of
Porsche France with effect from 1 February,
succeeding Marc Ouayoun, who has headed
Porsche Cars Canada since the start of the
year. Meurer was most recently employed as
Managing Director at Audi France, having
previously worked as a Marketing Director for
Volkswagen France.
Change of management at two
sales companies
MARTIN SCHOELLER TOOK PORTRAIT PICTURES OF SIX PORSCHE LMP1 DRIVERS
Performance Important events
BOSS
Julius Bär
ABB
PORSCHE ENTERS FORMULA E
Software programmed
and patented by Anagog
allows companies to
better understand and
anticipate customer
behaviour in certain
situations, resulting in
features such as intelli-
gent parking options.
based permanently in Le Mans. A further eleven
Porsche cars are driven by the race doctors
and safety teams.
the vehicles accompany the race cars during
the global championship, while three are
safety car at the FIA World Endurance
Championship since April. The all-wheel drive
911 produces 540 hp (397 kW) and can
sprint from zero to 100 km/h in three seconds.
Between now and 2020, Porsche will be
supplying a total of five Porsche 911 Turbos
to the FIA WEC for use as safety cars. Two of
A Porsche 911 Turbo has been used as the
The 911 Turbo as a safety car
THE 911 TURBO USED AS FIA WEC SAFETY CAR
Investment in start-up company Anagog
Porsche Digital acquired a minority stake in
the Israeli start-up Anagog in April. Founded in
2010, the Tel Aviv-based company currently
has around 30 employees and specialises
in developing artificial intelligence (AI) in the
context of mobility. Software programmed
and patented by Anagog allows companies to
better understand and anticipate customer
behaviour in certain situations, resulting in
features such as intelligent parking options. By
investing in Anagog, Porsche is continuing to
drive digital transformation and as a result can
now develop and offer context-based and
personalised services.
ANAGOG FOUNDERS
among those competing
in the sixth season of the
prestigious global
electric racing series at
the end of 2019.
Formula E will provide
the chassis as well as
the battery. All power-
train components,
however, are the com-
petitors' own designs.
Julius Bar
MICHELIN
ABB
SIPICK
Allianz
Qualcomm
The Fédération Internationale de l'Automobile
(FIA) accepted Porsche's application as a
Formula E manufacturer in April. Porsche plans
to be among those competing in the sixth
season of the prestigious global electric racing
series at the end of 2019. Formula E will
provide the chassis as well as the battery. All
powertrain components, however, are the
competitors' own designs. This enables Porsche
to use its own solutions for key technologies
such as the electric motor, inverter, brake-by-
wire system, transmission, differential, drive-
shafts, monocoque and the suspension
components attached to the rear axle, as
well as the cooling system and ECU.
Accelerator for start-ups
Porsche Engineering
Porsche Digital acquired a stake in the US
start-up company Miles in July. The company -
based in Silicon Valley, California, and founded
in 2016 is launching the first smartphone-
based rewards programme for all forms of
mobility. Miles has developed a digital platform
that rewards users simply for travelling the
way they travel every day, across various
modes of transport. This enables users to
collect points on all of their selected mobility
solutions, rather than being restricted to
one single form of transport. The additional
use of artificial intelligence means that a cus-
tomer's needs throughout a journey are better
understood and anticipated. The platform
can, for example, suggest suitable refuelling or
recharging points, recommend where to stop
for a break or propose transport connections.
PETER SCHÄFER
Officer (CEO) of Porsche Financial Services
GmbH with effect from 1 August. He succeeds
Albert Moser who led and built up the com-
pany for 26 years. Prior to his appointment to
the Porsche subsidiary's Management Board
in September 2017, Peters was responsible
for the Controlling department of Porsche AG
for eight years. He previously held various
management positions both domestically and
abroad within the Porsche Group. Albert Moser
is thus entering well-earned retirement.
Holger Peters took over as Chief Executive
Changing of the guard at Porsche
Financial Services
HOLGER PETERS
in July. The Macan has been given a full make-
over, with a revamp of the design, comfort,
connectivity and driving dynamics. The com-
pact SUV remains the sporty flagship of its
segment. In keeping with Porsche's design
DNA, the new Macan features a three-dimen-
sional LED light panel on the rear of the
vehicle. The most striking innovations inside
are the new fully interconnected Porsche
Communication Management (PCM) module
with 11-inch touchscreen, the new-look air
vents and also the GT sports steering wheel,
famously associated with the 911. The PCM
provides access to new digital functions such
as intelligent voice control and online navi-
gation, the latter coming as standard. The
new-generation Macan is being built in Leipzig.
With this decision, Porsche is laying the
foundation for continued growth and the pro-
duction of future models, with investment
worth several hundred million euros earmarked
for the Leipzig site over the coming years.
New Macan celebrates world première
Porsche launched its new Macan in Shanghai
17
MACAN
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
16
MARC OUAYOUN
Investment in Miles start-up
Angelique Kerber wins Wimbledon
Angelique Kerber was crowned Wimbledon
champion in July after beating Serena Williams
in the final of the most famous tennis tourna-
ment in the world. The Porsche brand ambas-
sador now has three grand slam titles to her
name, having already won the Australian Open
and the US Open. Kerber first reached the
Wimbledon final back in 2016, when she was
beaten by Williams. This time, Kerber was able
to overcome the American to win the most
sought-after trophy in tennis. She is the first
German player to win Wimbledon since Steffi
Graf in 1996.
GRAND SLAM WIN FOR ANGELIQUE KERBER
LEM
RO
Performance Important events
18
The Porsche Cayman
GT4 Clubsport at the
ADAC Rallye
Deutschland. For
19
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
PRODUCTION LAUNCH OF NEW MACAN
in Hamburg, became the new CEO of Porsche
Taiwan on 1 September 2018. He was previ-
ously Managing Director of the Porsche Centre
Hamburg Nord-West and Manager of New and
Used Cars Sales at the Porsche Centre Berlin.
Personnel change at Porsche Taiwan
Mathias Busse, previously Chairman of the
Managing Board for the Porsche Centres
MATHIAS BUSSE
In keeping with Porsche's
design DNA, the new
Macan features a
three-dimensional LED
light panel on the rear of
the vehicle.
with a revamp of the
design, comfort, con-
nectivity and driving
dynamics. The compact
SUV remains the sporty
flagship of its segment.
The Macan has been
given a full makeover,
Series production of the new Macan was launched at the Leipzig site in August, with the first
customer vehicle successfully making its way through the body shop, the paint shop and along
the assembly line. Parts of the factory have been adapted specifically for production of the
Macan. The vehicle shown, in the exterior colour Mamba Green Metallic, is destined for a
Chinese customer.
Production launch of new Macan
A very special course car, the Porsche Cayman
GT4 Clubsport, ran ahead of the starter field
at the ADAC Rallye Deutschland in August.
For Porsche, the entry of a concept study for
the FIA R-GT category based on the near-
production GT circuit race car is a critical test
under real conditions. Whether this turns into
a rally project for customers with a similar
vehicle in the medium term will be decided at
a later stage.
Rally car concept study
PORSCHE CAYMAN GT4 CLUBSPORT
critical test under real
conditions.
Porsche, the entry of a
concept study for the
FIA R-GT category based
on the series-production
GT circuit race car was a
18
GUNNAR KILIAN
PORSCHE WINS PRO CATEGORY AT LE MANS
ROLEX
Porsche gave itself the ideal present to mark the 70th anniversary of its sports cars in June. This
gift is a new model that embraces purity and emotion combined with historically accurate
execution. We are talking about the 911 Speedster Concept, a model that replicates the essence
of the Porsche brand. The car's main focus is on a pure driving experience. The drive technology
under the two-tone shell of the concept study is derived from the current GT models. As a
concept study, this model offers a glimpse of a potential long-term series-production version.
In early 2019, a special edition of the 911 Speedster will enter a limited production run of
1,948 units.
The 911 goes retro: 911 Speedster Concept
PORSCHE 911 SPEEDSTER CONCEPT
Porsche acquired a ten per cent stake in the
technology and electric sports car company
Rimac Automobili in June. The Croatian com-
pany develops and produces electric vehicle
components and manufactures its own
electric super sports cars. As part of its elec-
trification efforts, Porsche is seeking a devel-
opment partnership with Rimac. The fast-
growing Zagreb-based company employs
around 400 staff. Rimac's main focus is on
high-voltage battery technology, electric
powertrains and the development of digital
interfaces between man and machine.
Investment in Rimac
With its Porsche Charg-
ing Service, Porsche
launched a digital plat-
form in June covering
all charging-related
services. The service
searches for suitable
charging stations and
takes care of the invoicing
via centrally stored
payment details.
Porsche Consulting on the rise
With the opening of two more offices in June,
the management consultancy Porsche
Consulting is continuing to grow. Sites in
Berlin and Belmont (Silicon Valley, USA) will
now join the company's seven existing offices
worldwide. An additional 100 experts in new
technologies and innovation have also been
hired. Porsche Consulting is among the top ten
management consultancies in Germany and
supports companies with the optimisation of
their performance and innovative capacity.
Taycan
Digital charging service for electric vehicles
Innovative charging service for plug-in and
electric vehicles: with its Porsche Charging
Service, Porsche launched a digital platform in
June covering all charging-related services.
The service searches for suitable charging
stations and takes care of the invoicing via
centrally stored payment details, in any country
or currency. This eliminates the need to register
with different providers. A free app and the
Porsche navigation system direct customers
to the selected charging station.
PORSCHE
70
15
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
ANDREAS RENSCHLER
New Managing Director at Porsche Engineering
The Weissach-based Porsche Engineering
Group has expanded its management team:
Peter Schäfer, previously Vice President
Complete Vehicle Engineering/Quality Man-
agement at Porsche AG's Development Centre,
took up a newly created position in June as
an additional Managing Director at the wholly
owned subsidiary.
JENS PUTTFARCKEN
TAYCAN ELECTRIC PORSCHE
First electric Porsche is called the Taycan
Porsche's first purely electric-powered car was
officially named in June. The Mission E concept
study, which now refers to Porsche's entire
electrical mobility strategy, has produced the
Taycan. The name can be roughly translated
as "soul of a spirited young horse", in keeping
with the leaping horse that has featured on
the Porsche crest since 1952. This name, with
its oriental linguistic origins, also signals
the arrival of the first electric sports car with
the soul of a Porsche.
ALEXANDER POLLICH
MARS
WINNER
LEM
24 MA
ROLEX
ROLEX
GFC
LE MANS
2419
LE MANY
24
ROLEX
Porsche made history once again in Le Mans in June, winning both GTE classes in the world's
toughest long-distance rally, the Le Mans 24 Hours, now in its 86th year. In the pro category,
which saw six manufacturers do battle, the Porsche 911 RSR with starting number 92 was the
first car to cross the line after 344 laps. The driver trio of Kévin Estre, Laurens Vanthoor and
Michael Christensen held the lead for almost the entire distance and controlled the race
on the tradition-steeped course. The sister car (number 91) driven by Richard Lietz, Frédéric
Makowiecki and Gianmaria Bruni came in second.
Double victory in Le Mans
Jens Puttfarcken, previously Managing Director
of Porsche Deutschland, took over at Porsche
China and Porsche Hong Kong in July. His
successor in the German sales organisation is
Alexander Pollich, previously Managing
Director of Porsche Cars Great Britain. Pollich
has been succeeded in Great Britain by
Marcus Eckermann, previously Managing
Director of Porsche's sales organisation for
Central and Eastern Europe.
Personnel change in sales
MARCUS ECKERMANN
ROLEX
MARC MEURER
Lutz Meschke
Deputy Chairman
investment and just over three billion to cover
development costs.
128
126
124
122
116
Production
108
130
Sales
Sales, Production, Procurement
94
Research and development
Communication
Sport
Employees
Society
Employees, Society, Sport, Communication
106
Management approaches
Procurement
Value added statement
About this report
GRI Content Index
162
160
Emission and consumption information
158
The Supervisory Board
Consolidated statement of changes in equity
156
154
Key figures for personnel and social matters
152
Key figures for environment and energy
150
148
Key economic figures
Further information
88
84
76
is committed to improving continuously and
in the long term.
Financial strength, innovative vehicles, custom-
er orientation, protection of the environment
and responsibility for employees - in all these
areas, Porsche sets the highest standards and
That is why Porsche combines its annual report
with its sustainability report. The report is
intended to send out a signal. Namely, that the
twin themes of finances and sustainability go
hand in hand.
Financial success is a Porsche watchword. But
social sustainability is too. Particularly as a
maker of exclusive and powerful sports cars,
Porsche sees that it has a responsibility to
increase the company's acceptance and that
of its products worldwide through socially
and ecologically responsible behaviour. Respon-
sible actions that help the company, the
environment and society is not just what our
customers, business partners and investors
expect. Doing business sustainably is also
important to our remaining competitive in our
business environment.
Sustainability as routine is Porsche's overarch-
ing strategic aim. Financial success, environ-
mental consciousness and social responsibility
do not contradict each other as far as Porsche
is concerned. Quite the opposite, in fact. They
combine to form a whole that determines
the company's behaviour.
Performance.
PORSCHE
There are two volumes in front of you:
Perspective is intended to inspire, excite and
motivate you - to confront you, challenge you
and familiarise you with topics and proposi-
Sustainability Report
of Porsche AG
2018
Performance.
THIS CHART
SCAN
Augmented reality makes the
fascination of Porsche an even
more intense experience.
Simply download the Porsche
Newsroom app from the App
Store or Google Play, select the
augmented reality function in
the menu and look out for the
labels SCAN THIS CHART and
SCAN THIS PAGE. View the
labelled tables, diagrams and
pages on the screen of your
smartphone or tablet - and
bring the content to life.
reality options
how to use the augmented
SCAN THIS CHART -
Annual and
tions that a car company like Porsche needs to
face up to in a time of dramatic shifts across
the industrial landscape.
The future and how to shape it are happening
today, because tomorrow is right in front of us.
Continuous change is the motor of the future
and thus also what drives Porsche to find
solutions today for new challenges. But how
can we keep ourselves up to speed in times
of transformation?
Volume two is called Performance. It contains
all the results of fiscal year 2018. In it, you will
find developments, summaries, explanations,
figures - and documentation covering all
facets of Porsche's comprehensive commit-
ment to sustainability.
64
62
50
48
44
40
38
Sustainability strategy and sustainability management
36
Outlook
28
Business performance
Materiality analysis
Strategy and organisation
Stakeholder management
Important events
Letter from the Executive Board of Porsche AG
As different as the two volumes are, they have
one thing in common: communication on
various levels. That is why some articles offer
the option of augmented reality. You will find
instructions on the pages in question, and
no small number of surprises!
Porsche AG Group - Brief overview
Classic parts from a 3D printer
"No longer available" - for collectors of rare
classic cars, the unavailability of spare parts
can quickly become a problem. In February
Porsche Classic came up with a solution. Rare
parts that are only needed in small quantities
or only requested every now and again can
now be manufactured using 3D printers. All
parts that are produced this way are true
to the original, from both a technical and a
visual perspective.
Legal notice
144
S.GO 5090
GT3RS
Outlook
Important events
Business performance
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.7
Performance - Letter from the Executive Board of Porsche AG
Dr. Ing. h.c. F. Porsche AG
00
Your Executive Board
We regard digitalisation as an opportunity to tap new busi-
ness fields. We are developing typical Porsche mobility
concepts and using new technologies. Innovative start-ups
are supporting us in that effort. One example is the young
Berlin-based company XAIN, with which we are the first
carmaker worldwide to successfully implement blockchain
technology in the vehicle. In 2018 we also acquired inter-
ests in the Israeli start-up Anagog, Rimac Automobil in
Croatia and Miles in the US.
Together with the new 911, we launched the apps "Porsche
Road Trip" and "Porsche 360+". They can be bought and
used by anyone - even by those who don't own their own
Porsche. This represents our first forays into new target
groups and new types of uses. The same applies to
"Porsche Host", a pilot programme operated jointly with
our sharing partner Turo in the US.
Other new additions include the GT2 RS Clubsport, the
Macan S, the 718 T and the 911 Speedster, the latter to be
produced in a limited run of 1948 units. At the Rennsport
Reunion in Laguna Seca, we thrilled those assembled with
the Porsche 935, a homage to the legendary 935/78
known as Moby Dick. Finally, at the end of 2018 the new
911 celebrated its world première - even faster, more
efficient and more abundantly equipped with digital func-
tions than ever before.
The anniversary year also saw some prominent world
premières: in early March, we presented an electrically
powered cross utility vehicle concept car that will go into
series production as the Taycan Cross Turismo. And
with the 911 GT3 RS, a hitherto unequalled radical high-
performance sports car debuted in Geneva that would
shortly break the record for a street-legal Porsche sports
car on the Nürburgring's famed Nordschleife with a time
of 6:56.4 minutes. This was followed in July by adding the
new Macan. The Panamera family grew by two GTS models.
Always at the centre of events: the 356 "No. 1" Roadster,
which became the first car to bear the name Porsche in
June, 1948.
But 2018 was not just a year of outstanding growth and
success. It was also a year of grand celebrations: 80 years
of the Zuffenhausen location, the 75th birthday for
Wolfgang Porsche, and 70 years of Porsche sports cars.
Among other things, we marked the anniversary of our
brand by founding the charitable Ferry Porsche Foundation,
which works to support education, social issues and young
people. The anniversary was celebrated around the world.
With the new plant for the Taycan, we have created approx-
imately 1,500 new jobs. Our workforce has grown in other
locations as well, amounting to an nine per cent increase
worldwide. Overall, 32,325 people were working at Porsche
at the end of 2018 - more than ever before.
We also joined a new racing series: our application for a
place as a manufacturer in the Formula E championship was
accepted in April of last year. In other words, at roughly the
same as the world première the Taycan, Porsche will kick
off its first campaign in this purely electric-powered racing
series in late 2019. At the same time, our involvement
in the GT class and customer racing will continue. After all,
motor racing remains paramount for Porsche, our driver
of innovation, efficiency and sustainability. The race track is
our laboratory - and where we are at home.
This was also underscored by the decision of the Super-
visory Board under which Porsche will invest six billion
euros in e-mobility by 2022. The move will double the
volume of the future package that was previously in place.
It will now encompass some three billion euros of capital
investments and somewhat over three billion in develop-
ment costs. Roughly one billion of that will be invested in
the Zuffenhausen location alone to ensure that the Taycan,
our first purely electric Porsche sports car, can roll off
the lines there in autumn 2019.
IMPORTANT EVENTS
T
Porsche has earmarked more than six billion
euros for investment in plug-in hybrids and
purely electric vehicles between now and
2022. This follows a decision reached by the
Supervisory Board in February, doubling the
volume of the future package previously in
place. Some 500 million euros of the additional
three billion will be allocated to the develop-
ment of Mission E variants and derivatives,
while a billion euros will help fund the electri-
fication and hybridisation of the existing
product range. Several hundred euros are to
be used to expand Porsche's sites, while some
700 million euros has been set aside for new
technologies, charging infrastructure and
smart mobility. Overall, the future package is
now worth around three billion euros in capital
in electromobility
Billions of euros to be invested
PORSCHE STUDIO BEIRUT
in an automobile. Transac-
tions based on this technol-
ogy are particularly safe and
also much quicker.
In February, Porsche was
the first carmaker to
successfully implement and
test blockchain technology
Testing blockchain technology for automobiles
Together with the Berlin-based start-up XAIN, Porsche tests the use of blockchain
applications directly in vehicles. In February, Porsche was the first carmaker to successfully
implement and test blockchain technology in an automobile. Transactions based on this
technology are particularly safe and also much quicker. The functions being tested include
locking and unlocking the vehicle via an app, as well as access authorisations set up for a defined
period of time, and even new business models based on encrypted data logging. In this way,
functions such as autonomous driving can be further developed and improved. XAIN was the
winner of the first Porsche Innovation Contest held in summer 2017.
PORSCHE
Larger luggage compartment
More space
MISSION E CROSS TURISMO
At the 88th Geneva International Motor Show
at the beginning of March Porsche unveiled
its Mission E Cross Turismo, a concept study
for an electrically powered Cross Utility Vehicle
(CUV). The highlights of this four-door Cross
Turismo are its emotional design with striking
off-road elements, as well as the innovative
display and operating concept with touch-
screen and eye-tracking control. It is the
perfect vehicle for people with active lifestyles
and a passion for travel and the great outdoors.
With its 800-volt architecture, this concept
vehicle can use the fast-charging network. It
can also be charged by induction at a charging
station or using the Porsche home energy
storage system. Also making its début in
Geneva was the new 911 GT3 RS, one of the
most radical high-performance sports cars
available anywhere.
World premières in Geneva
New Porsche studio opens in Beirut
Porsche opened the world's third Porsche
Studio in Beirut in late January. The state-of-
the-art premises, covering an area of more
than 300 square metres, offer customers an
insight into the complete range of the brand's
services. A particular highlight is the platform
used to display the sports cars, which is
reminiscent of a fashion show catwalk.
Porsche celebrates 70 years of sports cars
70 years young and as pioneering, passionate
and driven as ever - welcome to the world of
Porsche in 2018. Worldwide celebrations to
mark "70 years of Porsche sports cars" began
in January with a New Year reception in the
Porsche Museum. The anniversary events are
geared around the 356 "No. 1" Roadster, which
became the first car to bear the name Porsche
in June 1948. It was with this vehicle that
Ferry Porsche turned his sports car dream into
reality. His vision reflected all the values that
are synonymous with the brand today and that
will continue to represent Porsche in the future.
PORSCHE FROM 1948 TO 2018
PORSCHE
Another topic that presented a lot of challenges in 2018 was
diesel. Porsche itself has never developed and produced
diesels. The technology has always played a relatively minor
role for us. After a good deal of deliberation, we therefore
decided to move forward without diesel. As a sports car
manufacturer, we concentrate on doing what we do best:
highly emotional gasoline engined, powerful plug-in hybrids
and, soon, purely electric drive systems. This will enable
us to sharpen the core of our brand and resolutely align our
company with the mobility of the future.
And that at a time when conditions in the industry were
anything but ideal in 2018: The earlier-than-expected
emissions legislation in Europe confronted the automotive
industry with enormous challenges. Let us be clear: we
stand unreservedly behind the agreed laws, not least be-
cause the measured values based on the WLTP cycle are
significantly more realistic than the NEDC cycle used previ-
ously. However, the new regulations were introduced one
year earlier than initially planned. The early change not only
had a major impact on existing product cycles, but also
led to severe bottlenecks at the test benches. As a result, we
had to prioritize with regard to product launches. With the
911, for example, we promptly equipped the GTS vehicles
with particle filters. With the 992, the eighth generation of
our icon, all new 911s are already WLTP-certified.
is our operating return on sales: at 16.6 per cent it once
again exceeds our strategic objective of 15 per cent.
140
Consolidated statement of financial position
138
Consolidated statement of comprehensive income
136
Consolidated income statement
Financial data
Consolidated statement of cash flows
Results of operations
Net assets
Financial analysis
168
134
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166
146
Financial position
142
Letter from the Executive Board of Porsche AG
makerm mains the p.pk my this duome
2018 was a successful year for Porsche. We posted in-
creased delivery figures once again, with a four-per cent
gain over 2017 to 256,255 vehicles. Another bright point
Dear Reader,
Sales and Marketing
Detlev von Platen
Дольков
Deller von
Finances and IT
of the Executive Board
Research and Development
Michael Steiner
Michal fluimer
Executive Board
Oliver Blume
Chairman of the
Production and Logistics
Albrecht Reimold
Human Resources and
Labour Relations
Andreas Haffner
Uwe-Karsten Städter
Procurement
165
Key figures
Porsche plans to be
twelve per cent more
units than in 2017.
France: Panamera hybrid enjoys success
Sales in France were down 16 per cent in
2018 due to the challenges faced right across
Europe. Porsche France delivered 4,908
vehicles to its customers. Despite declining
numbers, the Macan remained the most popu-
lar Porsche model, accounting for 1,508 units.
The Cayenne was in third place with 1,009
units sold, an increase of eleven per cent on
2017. The 911 also recorded a slight increase,
with 1,122 units sold. Porsche actually record-
ed double-digit growth in Panamera sales:
French customers took delivery of 802 vehicles,
14 per cent more than in 2017. The proportion
of E-Hybrid Panamera models is gratifyingly
high, with 81 per cent of French Panamera
drivers opting for the plug-in hybrid model.
718 models continued to be popular, with
deliveries totalling 2,642. This highlights the
extent of the British love affair with mid-engine
sports cars. There were 2,227 Cayennes sold
in the UK during 2018.
drivers.
of 42 per cent, the Sport
Turismo was another
popular choice among
European Panamera
very popular. In the case
of the Panamera, hybrids
accounted for 67 per
cent of sales in Europe.
Accounting for a share
Porsche's plug-in hybrid
vehicles again proved
Porsche enjoyed stable demand in the UK
during 2018. However, the move to WLTP and
the petrol engine particle filter also affected
the availability of certain models on the British
market. The company also stopped selling
diesel vehicles during the reporting year, with
a corresponding drop in sales. Overall, Porsche
sold 12,521 vehicles to customers in the UK
during 2018. The 911 Carrera was the model
with the strongest growth. Sales totalled
2,403 units, seven per cent more than in
2017. The most successful car remained
the Macan, with 4,239 units sold, while the
UK: Strong growth in 911 sales
to 5,133 delivered vehicles.
Germany: Holding our own on our home market
Porsche faced numerous challenges in
Germany during 2018, particularly during
the second half of the financial year. These
included the move to the new WLTP cycle
and the petrol engine particle filter, as well
as the end of diesel sales. Nevertheless, the
Stuttgart-based sports car manufacturer
was able to hold its own on its home market,
delivering 27,541 new vehicles. This equates
to a slight year-on-year dip of three per cent.
Given the change of generation, the sustained
high level of demand for the 911 Carrera was
particularly significant in 2018. With double-
digit growth of 23 per cent and sales of
9,309 units, this iconic sports car performed
exceptionally strongly in what tended to be a
weak lifecycle year in Germany, and was the
most popular Porsche model there. In second
place was the Macan, with 6,430 cars sold.
Cayenne sales grew slightly, up three per cent
Europe region: Slight decline, Cayenne strong
The transition to the new WLTP cycle was one
of the biggest challenges for the Europe region
in 2018. An additional factor was the end of
diesel sales from February 2018 onwards.
There was a corresponding drop in the number
of new vehicle sales compared with the previ-
ous year, down by four per cent to 50,450
(excluding Germany). The Cayenne performed
very strongly, with Europe-wide sales in 2018
of 13,016, an increase of 34 per cent. The
Macan continued to be the brand's best seller
in Europe, with 15,632 units sold. Sales in the
911 sports car were up by eleven per cent
to 9,090 vehicles. The mid-engine 718 Boxster
and 718 Cayman accounted for 5,395 units.
Porsche's plug-in hybrid vehicles again proved
very popular. In the case of the Panamera,
hybrids accounted for 67 per cent of sales in
Europe. Accounting for a share of 42 per cent,
the Sport Turismo was another popular
choice among European Panamera drivers.
Europe
in Brazil during the previous year. Demand for
the Cayenne was up 18 per cent to 347 units.
The 911 Carrera also fared well with Brazilian
customers, with sales of 211 units. This
equates to an increase of seven per cent. With
a view to further strengthening the Porsche
brand in Brazil, the company opened its tenth
Porsche Centre in 2018.
in 2015 recorded particularly strong growth
in 2018. Deliveries on the South American
market grew by 28 per cent on a year-on-year
basis, to 1,444 units. The Panamera recorded
a disproportionately high level of growth,
with 185 vehicles being delivered, an increase
of 157 per cent compared with 2017. Other
models also performed well. Sales of the 718
series totalled 275 vehicles, 80 per cent higher
than the number of Porsche cars delivered
The Porsche subsidiary established in Brazil
Brazil: Growth nudging 30 per cent
Porsche was able to maintain its sales at a
stable level in Central and South America
(excluding Brazil) despite the volatile environ-
ment. Sales in this region totalled 2,911
vehicles in 2018. The highest growth was
recorded by the Panamera, with an increase
of 36 per cent to 262 vehicles. The Cayenne
was Porsche's most successful model, up
by 25 per cent to 1,150 units. Sales of the
911 also grew, with 528 vehicles sold, four per
cent more than in the previous year in Central
and South America. The Regional Office based
in Miami looks after 22 markets in total and
45 points of sale. Mexico again accounted for
the largest proportion of sales, with 1,486
units sold. This market thus made a key contri-
bution to stable sales figures for Latin America.
Italy: Macan remains the number-one choice
The already mentioned factors specific to
Europe in 2018 also resulted in falling sales in
Italy, with a dip of five per cent to 5,230 units.
Bucking this trend was the Cayenne, which
continued to grow in popularity. Deliveries
totalled 1,047 units, a 23 per cent increase on
the previous year. Porsche also experienced
good demand for its 911 Carrera, delivering
977 vehicles to Italian customers. This
equates to an increase of four per cent. Italy's
most popular model remains the Macan, with
2,082 units sold. The Panamera was purchased
by 579 Italian customers during the year under
review, a rise of five per cent compared with
2017. The hybrid models and Sport Turismo
fared particularly well, with 67 per cent of
Panamera customers opting for an E-Hybrid,
and the Sport Turismo accounting for a good
half of sales.
South America: Stability in a
volatile region
Spain/Portugal: Cayenne growing in popularity
Despite slight growth, the economies of Spain
and Portugal have not yet made a full recovery,
and government debt remained high in both
countries in 2018. Overall, 2,965 Porsche
vehicles were delivered on the Iberian market,
down three per cent on the previous year. The
most successful model was the Macan, with
1,203 units. Demand for the Cayenne devel-
oped very positively, and it was the second-
favourite model on both markets. Porsche sold
644 Cayennes in Spain and Portugal in 2018,
20 per cent more than in 2017. Customers
also took delivery of 574 Panameras, while
sales of the 911 Carrera totalled 334. A further
210 customers purchased 718 models.
Austria: Panamera E-Hybrid performs well
Porsche once again grew its sales on the
Austrian market, with a rise of seven per cent
to 1,399 vehicles. The most popular car was
the 911 Carrera, with sales of 473 units, a
year-on-year increase of 58 per cent. Demand
for the Cayenne also grew strongly, with sales
to Austrian customers totalling 294. Panamera
sales totalled 288 vehicles, up 22 per cent on
2017 levels. Accounting for 90 per cent of
deliveries, the E-Hybrid was more popular in
Austrian than in any other individual Euro-
pean market.
South Korea: A gain of almost 70 per cent
The young Porsche subsidiary in South Korea
significantly improved on its 2017 result
during what was its third financial year. The
Panamera was a particularly important factor
in the 69 per cent growth, with a huge rise
The Porsche range continued to be appreciated
by Japanese customers in 2018. The sports
car manufacturer exceeded the 7,000 mark for
delivered vehicles, growing its sales by three
per cent compared with 2017. The Cayenne
recorded the strongest growth, up by 85 per
cent on 2017 with 1,192 vehicles sold. Sales
of the Panamera were also up on 2017, rising
by 28 per cent to 1,110 units. The two-door
911 accounted for 1,405 units in Japan, while
the 718 Boxster and 718 Cayman together
accounted for 1,266. The Macan remained out
in front, with 2,047 units being sold on the
Japanese market.
Japan: Cayenne drives growth
With total deliveries of 80,108, China re-
mained Porsche's strongest individual market
in terms of volume, complete with double-
digit growth. In 2018, Porsche supplied its
Chinese customers with twelve per cent more
units than in 2017. The Cayenne accounted
for the largest proportion of those sales, with
31,456 units delivered to customers in China
and Hong Kong, marking a year-on-year
increase of 19 per cent. It was followed by the
Macan, with 27,386 units sold. The highest
level of growth was recorded for the Panamera,
with 13,964 deliveries, a climb of 123 per
cent compared with 2017. Around one in ten
customers opted for hybrid models, which
account for eleven per cent of the market in
China. The 718 Boxster and 718 Cayman also
remained popular, with sales of 5,882 units.
They therefore accounted for around 80 per
cent of their segment. The further expansion
of Porsche's dealer network in China helped to
boost growth: a further 15 Porsche Centres
opened their doors in the 2018 financial year,
bringing the total number of dealers to 114.
China: Still number one
Asia
33
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
32
Northern Europe: Market continues to grow
The positive development of earlier years
continued in Scandinavia and the Benelux
countries. Deliveries grew by an average of
three per cent to total 8,700 vehicles in 2018.
The Cayenne was a strong driver of growth,
accounting for 2,127 cars, an increase of
63 per cent. This made it Porsche's top seller
in this region for 2018. Significant gains were
also made in terms of the 911, with 25 per
cent growth to 1,907 units. Sales of the
Macan totalled 1,947 vehicles, while there
was a one per cent increase in Panamera
deliveries, with 2,017 units sold. E-Hybrid
vehicles accounted for a high 84 per cent of
all Panameras sold.
In Russia, Porsche recorded double-digit
growth and a very successful 2018 for the 911
and Cayenne. The company delivered 5,118
vehicles to Russian customers, twelve per cent
more than in 2017. The Cayenne and 911
proved particularly popular, with deliveries of
the SUV model up 67 per cent to 2,848 units.
The Cayenne was Porsche's best-selling brand
on the Russian market in 2018. In terms of
the 911, 204 models were sold, five per cent
more than in 2017. The Macan also remained
a popular choice, occupying second place in
the deliveries rankings with 1,451 units.
Meanwhile, 506 Porsche customers opted
for a Panamera, while 109 customers
purchased a 718 model.
Russia: Cayenne and 911 record double-digit
growth
in mid-engine sports cars sales in Central and
Eastern Europe also reached double figures,
with 405 sales of the 718 Boxster and
718 Cayman, a 16 per cent rise compared
with 2017. With 1,919 deliveries, the Macan
was the second most popular choice among
customers in this region.
customers purchasing this model. The growth
In Central and Eastern Europe, a heterogeneous
market affected by political tension, Porsche
recorded sales of 6,259 vehicles during the
reporting year, a rise of one per cent compared
with 2017. The 911 and Cayenne accounted
for the slight growth. The Cayenne was the
number-one choice in the region, with 2,145
units sold. This is an increase of 34 per cent
compared with the year before. The 911 Carrera
recorded growth of 25 per cent, with 708
Central and Eastern Europe:
One per cent growth
Switzerland: GT and Turbo 911s enjoy success
In Switzerland, Porsche delivered 3,350 new
vehicles to customers, which was slightly
down from the previous year. As in 2017, the
most popular model remained the Macan,
accounting for 1,068 units. There were 962 of
the iconic 911 sports car sold in Switzerland
during the reporting year, an increase of ten
per cent on 2017. The GT and Turbo models
were particularly sought-after, making up
52 per cent of deliveries. Cayenne sales totalled
675 vehicles, 37 per cent more than in 2017.
Sales of the Panamera totalled 459, 59 per
cent of which were the plug-in hybrid model.
The 718 Boxster and Cayman mid-engine
sports cars accounted for 186 sales to Swiss
customers, most of whom opted for one of
the GTS models.
31
+4%
THIS CHART
150
189,849
200
of new vehicles
Deliveries
250
more than in any previ-
ous financial year, and an
increase of four per cent
on the previous record
set in 2017.
256,255 new vehicles to
customers in 2018,
Porsche delivered
Porsche recorded another marked increase in
its sales in Canada in 2018. The high level of
professionalism on offer from Porsche Centres
and Canadian customers' enthusiasm for
the brand contributed to a new sales record on
what is the sports car manufacturer's sixth
largest market. The highest-selling model was
the Macan, with 3,960 units sold, followed
by the Cayenne, at 2,107 units. With a year-
on-year increase of 40 per cent, demand for
the Panamera grew the most strongly, with
783 units sold in Canada during the reporting
year. Meanwhile, the 718 Boxster and
718 Cayman also enjoyed greater popularity
in Canada, with sales totalling 656 units and
thus rising by eight per cent compared with
2017. In total, Porsche sold 8,904 new vehi-
cles on the Canadian market in 2018. This
represents a year-on-year increase of eight per
cent. The number of pre-owned models, sold
after being checked by Porsche, rose by almost
20 per cent, with 2,559 pre-owned cars
finding their way to Canadian customers.
Canada: Renewed substantial increase
to customers in 2018. Alongside new vehicles,
sales of pre-owned cars also reached an
all-time high. With 23,046 units delivered
and an increase of 21 per cent, pre-owned
vehicles were also a popular choice among
US customers.
USA: Nine consecutive years of growth
Porsche delivered 57,202 vehicles to custom-
ers in the United States in the reporting year -
a year-on-year increase of three per cent.
This is the ninth year in succession that Porsche
has beaten its previous year's record. The
Macan once again claimed the top spot among
Porsche's models on the US market, with
23,504 models sold, ten per cent more than
in 2017. Sales of the Panamera also grew
again. Two years on from its market launch,
8,042 units of the new model generation were
sold during 2018. Supported by strong de-
mand for GT models, the 911 Carrera recorded
growth of around eight per cent in the USA,
with 9,647 units sold. This makes the USA the
world's strongest market for the 911. Demand
for the Cayenne S and Cayenne Turbo, offered
for the first time on the US market towards
the end of the year, proved particularly strong.
A total of 10,733 Cayennes were delivered
North America
For the third year in succession, China main-
tained its position as the strongest individual
market for Porsche in terms of volume.
Year-on-year growth in China was twelve per
cent, with sales rising to 80,108 units.
The proportion of hybrid models also increased
further during the reporting year. The sporty
E-Hybrid Panamera models proved particularly
popular among our European customers,
accounting for 67 per cent of all Panamera
deliveries in Europe. At a global level, the
Panamera E-Hybrid now accounts for 27 per
cent of all Panamera sales, a rise of ten per-
centage points.
As in the previous year, the Macan and
Cayenne SUVs were once again Porsche's
most successful products in 2018, despite
the Macan model change. This success
underscores the sports car manufacturer's
strong positioning in this segment too. World-
wide sales of the Macan totalled 86,031
vehicles, consolidating the SUV's position as
the number-one Porsche model. Sales of the
Cayenne totalled 71,458, marking a twelve
per cent increase compared with 2017.
100
50
0
0
SCAN
Performance - Important events
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
30
and Middle East
108,578
Asia-Pacific, Africa
77,216
70,461
in deliveries to 1,968 vehicles. The top-selling
model thereby even outperformed 2017's
number one, the Macan, which also recorded
significant growth with 1,118 deliveries.
The 718 Boxster and 718 Cayman were also
increasingly in demand among South Korean
customers during the reporting year. Sales
of 918 units, which is a rise of 18 per cent,
clearly demonstrate the growing enthusiasm
for Porsche mid-engine sports cars.
Europe
America
2018
2016 2017
2015
2014
225,121
237,778
246,375
256,255
Deliveries in 2018
Porsche delivered 256,255 new vehicles to
customers in 2018, more than in any previous
financial year, and an increase of four per cent
on the previous record set in 2017. In terms
of models, the Panamera recorded the biggest
percentage increase, with sales up by 38 per
cent to 38,443 units. The 911 also performed
well, recording a double-digit increase on
the back of its continued appeal. Despite the
generation change, the number of 911 models
delivered worldwide was up ten per cent to
35,573 units.
Asia-Pacific: Three models record
From its regional head office in Singapore,
Porsche serves the Asia-Pacific region, where
sales grew once again in 2018. Six per cent
growth was recorded, with 2,147 vehicles
sold. The Cayenne, Panamera and 911 all
recorded double-digit increases. There were
422 Cayennes sold, 86 per cent more than
in 2017. Delivers of the Porsche 911 rose by
51 per cent to 304 units. Customers in the
region purchased 473 Panamera vehicles, a
big increase of 40 per cent on 2017 levels.
Similarly, demand for the 718 Boxster and
718 Cayman was also high, with 357 customers
opting for one of these two mid-engine
models. The region's top-selling model remains
the Macan, with 591 units sold.
Demand for passenger cars and light
commercial vehicles (up to 6.35
tonnes) will fall slightly in the USA and
in North America as a whole. However,
demand for vehicles in the SUV and
pick-up segments can be expected to
remain high.
North America
Porsche AG forecast for 2019
Automotive market development
Anticipated development of Porsche AG
Porsche is expecting to increase its delivery
volume in the 2019 financial year in com-
parison to the 2018 reporting year - despite
the challenges involved in changing over to
the new WLTP testing cycle and the petrol
engine particulate filter, as well as the discon-
tinuation of diesel models. The company is
also expecting a slight increase in revenue.
The attractive range of products that Porsche
offers will form the basis for this - above all,
the new generation of the 911, which is being
rolled out in all global markets in 2019, more
derivatives of the 718 and Cayenne, and the
launch of the Taycan. Despite the very high
level of investments that are still being made
in electrification of the product range, the
digital transformation and the expansion and
refurbishment of the sites, the aim is to ensure
that the high earnings target at Porsche AG
will continue to be met. This will be achieved
by means of measures that contribute to
increasing efficiency, and by tapping into new
and profitable business areas.
In the Asia-Pacific region we expect market
volumes in 2019 to be slightly higher than in
the previous year. We expect demand in China
to pick up again in 2019 having fallen during
the past financial year. Good-value, entry-level
SUV models in particular can be expected to
remain very popular. The trade dispute between
China and the USA will impact on business
and consumer confidence, unless a solution
emerges. As far as the Indian market is con-
cerned, we are anticipating somewhat stronger
growth than in 2018.
Demand for passenger cars and light commer-
cial vehicles (up to 6.35 tonnes) in 2019 will
fall by a small amount in the USA and in North
America as a whole according to our forecasts.
However, demand for vehicles in the SUV and
pick-up segments can be expected to remain
high. In the largest South American market,
Brazil, forecasts point to a significant increase
in volumes in 2019 following the already strong
performance of the past year. South America
as a whole will experience moderate growth.
automobile market, we are expecting a slight
year-on-year fall in sales in 2019. Based on
our forecasts, demand in Italy will rise slightly,
while we expect it to remain stable in France
and the UK.
to stifle demand. With regard to the German
of the financial and debt crisis, and continue
Our 2019 forecasts for Western Europe indi-
cate a market volume in line with the previous
year. The unknown impact of Brexit will add
to ongoing consumer uncertainty in the wake
As far as the world's automobile markets are
concerned, we expect to see a variety of
developments across the different regions in
2019. For the purpose of our planning, we are
assuming that overall demand for new vehicles
will remain on a par with levels of demand
during the reporting year. Looking at the period
from 2020 to 2023, we expect to see growing
demand for passenger vehicles worldwide.
Heterogeneous automotive markets
With regard to China, we expect to see a con-
tinuation of relatively high growth in 2019.
Given China's trade dispute with the USA, we
do, however, anticipate a less dynamic economy
than in previous years. We expect the rate of
expansion in India to remain at the same level
as in previous years.
Looking to the USA, we expect the economic
situation to remain stable in 2019. However,
we anticipate lower growth than during the
year under review. The Federal Reserve is likely
to raise interest rates again over the course
of 2019. Based on our forecasts, the Brazilian
economy will stabilise again and grow some-
what less strongly than in 2018.
According to our forecasts, economic growth
in Western Europe will weaken in 2019. Struc-
tural problems and the unknown impact of
Brexit continue to pose major challenges.
As far as Germany is concerned, we expect to
see gross domestic product (GDP) rise less
strongly in 2019 than in 2018. It is our view
that the situation on the labour market will re-
main stable and support private consumption.
For the purpose of our planning, we expect
global economic growth to slow down in
2019. We consider protectionist tendencies,
turbulence on the financial markets and
structural deficits in some countries to be a
source of risk. At the same time, growth
prospects are being kept in check by ongoing
geopolitical tension and conflict. We therefore
expect economies to be less dynamic than
in 2018, both in the advanced nations and in
the emerging markets. The highest rates of
growth are likely to be recorded in the emerg-
ing economies of Asia. Our planning is also
based on growth in the world economy during
the period from 2020 to 2023.
Germany
OUTLOOK
With regard to the German auto-
mobile market, we are expecting a
slightly lower volume of sales in 2019.
The market volume for Western
Europe will remain at the
previous year's level.
Management approaches
Materiality analysis
Stakeholder management
Strategy and organisation
Sustainability strategy and sustainability management
37
Performance - Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
36
Volumes on the passenger car
markets of the Asia-Pacific region will
slightly exceed the previous year's
levels.
Asia-Pacific
America, demand is expected to soar
again after already climbing in 2018.
In the largest market in South
Brazil
Good-value, entry-level SUV models
in particular can be expected to
remain very popular.
Demand will rise somewhat again
following a decline in 2018.
China
Western Europe
35
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance - Important events
Revenue increased by ten per cent in
comparison with the previous year.
Group sales revenue
€ 25.8 billion
Our global workforce grew by
nine per cent.
Employees
32,325
Despite very high levels of investment in electromobility and future
technologies, the operating return on sales of 16.6 per cent exceeds
the strategic target of 15 per cent.
Operating profit margin
16.6%
Figures relate to Porsche AG Group
2018 financial year
in figures
Porsche
With total deliveries of
80,108, China remained
Porsche's strongest
individual market in
terms of volume,
complete with double-
digit growth. In 2018,
Porsche supplied its
Chinese customers with
Even in the year of generation change, Aus-
tralian customers' love for the 911 was
undiminished. Deliveries of the iconic sports
car were up 28 per cent to 612 units. Sales
of the Panamera also rose, with 138 new
deliveries, an increase of eight per cent on
2017. Around one in four Panamera customers
opted for the Sport Turismo, with 30 per
cent choosing a hybrid model. Overall, Porsche
delivered 4,294 vehicles to the Australian
market during the reporting year.
Australia/New Zealand: A strong year for the
Porsche 911
Porsche delivered 6,438 vehicles to the
Middle East and Africa region during 2018.
Despite the challenging political context
throughout the Middle East, Porsche achieved
slight growth of one per cent. The Cayenne
fared particularly well, with the delivery of
2,936 units, 38 per cent up on 2017. It remains
the most popular model on this market. Sales
of the 911 also grew in double digits, with
1,094 units sold. There were 1,306 deliveries
of the Macan.
Middle East, Africa and India: Growing demand
for the Cayenne
€1.9
billion
Capital expenditure (Automobile sub-group)
Capital expenditure (vehicles business)
grew by ten per cent.
86,031
34
We delivered around 38 per cent more Panamera
vehicles compared with the previous year.
Panamera deliveries
38,443
Our R&D costs decreased
by six per cent.
development costs
Research and
€2.2.
double-digit growth
billion
Delivery of new vehicles
256,255
The operating result grew by four per cent.
billion
Operating profit
€4.3.
The Macan was the best-selling
Porsche model.
Macan sales
Overall, we delivered four per cent more Porsche vehicles
than in the previous year.
Despite major challenges such as the switch
to the new WLTP testing cycle and the petrol
engine particle filter, as well as the move
away from diesel in Europe, and despite the
rise in volatility globally, 2018 was a very
successful year for Porsche. The company's
attractive product range and consistent cus-
tomer focus were key factors in the renewed
rise in global deliveries.
Year-on-year comparison
29
New lap record at the Nürburgring
MICHAEL MÜLLER
Porsche added two extra-sporty models to its Panamera range in October: the Panamera GTS
and Panamera GTS Sport Turismo, creating a unique performance package. This combines the
power of the four-litre V8 biturbo engine (338 kW/460 hp) with an impressively dynamic chassis
with three-chamber air suspension, not to mention specific design elements and features.
Porsche has also expanded its portfolio of comfort and assistance systems to include a head-up
display with various configuration options for the entire Panamera range.
Two new GTS models
New boss for Central and Eastern Europe
With effect from October, Michael Müller will
take over as Managing Director of the Porsche
Central and Eastern Europe subsidiary, which
is based in the Czech capital, Prague. He has
held various executive positions and was
previously Executive Director Porsche and VW
at Volkswagen Group Saudi Arabia. More
recently, he has been responsible for Porsche's
Western Europe sales region.
Roadster, the 917 and the Porsche 935/78 -
were driven by driving royalty from the past
and current day. The event was held in
the Porsche Arena for the first time, marking
"70 years of Porsche sports cars".
The roar of engines at the Porsche Arena
Nearly 4,000 fans gathered to attend the
Porsche Sound Night in October and listen
to the engines in concert, most of them in
full voice. The ten-plus legendary racing and
sports cars among them the 356 "No. 1"
Porsche set another new record on the Nürburgring-Nordschleife in cooperation with Manthey-
Racing in October. With Porsche test driver Lars Kern behind the wheel, the 515 kW (700 hp)
Porsche GT2 RS MR completed a lap of the 20.6-kilometre long circuit in 6:40.3. No other
road-legal vehicle has ever been so fast. Porsche engineers and Manthey-Racing experts had
ensured that the sports car was specifically set up for the Nordschleife loop.
PORSCHE SOUND NAC
22
EXPERIENCE CENTRE
Foundation stone laid at Hockenheimring
Driving in its purest form: work began in
October on the world's seventh Porsche
Experience Centre. At the heart of the historic
Hockenheimring racing circuit, a state-of-
the-art complex comprising racing tracks and
buildings is being built on a site that covers
160,000 square metres, with completion
scheduled for late 2019. The main features
will include a handling course, several driving
dynamics areas and a large off-road course
area covering 5,200 square metres with
16 challenging modules.
PORSCHE SOUND NACHT 2018
PORSCHE SOUND NIGHT 2018
PORSCHE SOUND NACHT
21
22
21
With Porsche test driver
Lars Kern behind the
wheel, the 515 kW
(700 hp) Porsche GT2
RS MR completed a lap
of the 20.6-kilometre
long circuit in 6:40.3.
RECORD
64033
Mein 360+
6511
The new lifestyle assistant: Porsche 360+
Since November, Porsche has been offering a
very special service, namely a personal life-
style assistant available 24/7 in the form of its
Porsche 360+ app. The aim of the app is to
make everyday life easier, and to provide
access to exclusive experiences. The Porsche
360+ app bundles all relevant information in
a dashboard format. This makes it possible to
track and control requests and to access the
suggestions offered by the lifestyle assistant.
Users can also use the app to contact
their personal assistant via messaging, email
or phone. This offer is currently limited to
an exclusive group of 911 customers.
S GO 4090
PORSK
direct access to key innovation networks.
Belmont is the ninth site to be opened by
Porsche's consulting subsidiary since it was
first established in 1994.
Porsche Consulting now in Silicon Valley
New mobility, high-performance enterprise
and business transformation are the main
themes occupying the minds of Porsche
Consulting employees at their new base in
Belmont (Silicon Valley). The office, which
opened in November, is located next to
Volkswagen's Electronics Research Laboratory
and in close proximity to leading innovators
in the IT and high-tech sectors. The aim is
to provide clients from across the world with
MANTHEY RACING
23
Performance Important events
Porsche Leasing GmbH was founded on November 9, 1988. Now known as Porsche Financial
Services, the company is one of the most successful entities within Porsche. Today, the financial
service provider operates on 17 markets across the world and employs around 300 staff. More
than 200,000 customers take advantage of the attractive leasing and financing services, as a
result of which this Porsche subsidiary manages and refinances in excess of 6.5 billion euros.
30 years of Porsche Financial Services
Porsche and Hugo Boss cement partnership
The entire Porsche Motorsport team world-
wide will be wearing Hugo Boss, as agreed by
Porsche and the Metzingen-based fashion
house in November. Based on a multi-year
cooperation agreement, and in its capacity as
official clothing partner, Hugo Boss will equip
both the racing teams and the workshop
personnel with clothing, including the future
Porsche Formula E team.
PANAMERA GTS AND PANAMERA GTS SPORT TURISMO
BB RS 3091
GT2 RS MR LAP RECORD
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Deborttagrethenk for are Mutter
Handgemachte 
erior Design Accessoires
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
20
Porsche bought into
WayRay in September as
a strategic lead investor.
This technology start-up
from Zurich develops
and produces holo-
graphic augmented
PORSCHE
SIX-HOUR RUN
in Stuttgart, the Neuwirtshausschule in
Zuffenhausen and the association "Frühstück
für Kinder" (Breakfast for Children).
Zuffenhausen, the Lebenshilfe disabled charity
in Stuttgart, the Gustav Werner School in
Nearly 3,500 Porsche employees took part in
the run around the site in Zuffenhausen in
September, running laps of exactly 911 metres.
For each lap completed, the Ferry Porsche
Foundation made a five-euro donation to social
projects in the Stuttgart region. After notching
up an impressive 26,415 laps, the total
amount raised was 195,000 euros, having
been generously rounded up by the foundation.
The money will go to the Olgäle foundation,
the children's and young people's hospice
reality head-up display
technologies.
Six-hour charity run
Investment in start-up company WayRay
HEAD-UP DISPLAY TECHNOLOGY
WAUMENTED REALITY INTERFACE ILLUSTRATION IS SUBJECT TO CHANGE
20
New peer-to-peer car sharing programme
The flexibility to drive a Porsche whenever
you want, but without actually purchasing or
leasing the vehicle: the "Porsche Host" pilot
programme makes this possible. As of October,
the Porsche driving experience has been
opened up to short-term users, with the possi-
bility of hiring a car for a period of between
one day and one month. The vehicles on offer
belong to Porsche customers who have been
specially trained in how to provide the premium
experience synonymous with Porsche. This
peer-to-peer sharing programme has been
developed by Porsche Digital together with its
partner Turo.
A joint venture between Porsche and Schuler
AG was given the go-ahead in September. The
purpose of the joint venture with this world-
leading manufacturer of automation and press
systems is to build a Smart Press Shop. The
idea is that the new, highly flexible press shop
will produce complex body parts using pioneer-
ing technologies. The focus will be on aluminium
outer skin panels, as well as the production of
smaller batch sizes. Through this collaboration,
Porsche is continuing to chart the course of
its sports car production of the future.
Car body parts joint venture
Porsche bought into WayRay in September as a strategic lead investor. This technology start-up
from Zurich develops and produces holographic augmented reality head-up display technologies,
which seamlessly integrate virtual objects into the driving experience. The collaboration between
WayRay and Porsche forms part of the "Startup Autobahn" innovation platform and will now be
strategically developed to actively drive forward the future-oriented technology and its potential
areas of use in the automotive industry.
Performance Important events
A diesel-free future
logy is soaring. Since February 2018 Porsche
has no longer included any diesel models in
its portfolio.
and white base colour.
shape, massive fairings
More than 80,000
Porsche enthusiasts
attended this year's
historic motorsport
gathering at the Laguna
Seca Raceway, which
provided the perfect
backdrop for the unveil-
ing of the 935. The
racing car pays tribute to
the legendary Porsche
935/78, which fans
dubbed "Moby Dick" on
account of its elongated
911 TARGA 4 GTS
PORSCHE 935
2018: New record set for deliveries
The return of the Porsche 935
At the end of September, Porsche decided to
drop diesel models altogether. Diesel vehicles
have traditionally played a subordinate role
at Porsche, accounting for only twelve per cent
of sales in 2017 and with demand waning.
At the same time, interest in hybrid techno-
BRICK BUILDING, THE CURRENT-DAY PLANT 1
911 Targa 4 GTS Exclusive Design Edition,
which was unveiled in October. The Targa
takes its inspiration from the North Sea island
of Sylt. This limited edition showcases elegant
design elements and exclusive features.
The all-wheel drive 911 Targa 4 GTS is the
sportiest and most emotional model in the
Targa model line.
vehicle's distinct style and developed the new
Porsche Exclusive has further refined the
Exclusive: 911 Targa 4 GTS
The heart of Porsche beats in Zuffenhausen, as
it has done for 80 years. And in September it
was time to celebrate this anniversary. It was
in 1938 that Ferdinand Porsche moved his
design office into the striking brick building
that is now Plant 1. Legendary Porsche sports
cars have been built at the site since 1950,
including the 356, 911, 959 and 918 Spyder.
From 2019, the Taycan will also roll off pro-
duction lines at Porsche's main plant. All of
this means Porsche creating more than
1,200 jobs, and investment of 700 million
euros in Zuffenhausen.
80 years at Zuffenhausen
Greater investment in start-ups
Opening the door to new technologies: in
September, Porsche increased its total invest-
ment in venture capital activities by 150 mil-
lion euros for the next five years. The objective
of "Porsche Ventures" is to gain access to
trends, new technologies and business models.
The targeted investment activities build in
part on the company's existing start-up
investment activities.
Dring Part
Dolfswagenment
zum Wohlfühlen
At the Rennsport Reunion in California in September, Porsche presented the new 935. More
than 80,000 Porsche enthusiasts attended this historic motorsport gathering at the Laguna
Seca Raceway, which provided the perfect backdrop for the unveiling of the 935. The racing car
pays tribute to the legendary Porsche 935/78, which fans dubbed "Moby Dick" on account of
its elongated shape, massive fairings and white base colour. Like its historic predecessor, most
of the body has been replaced or supplemented by carbon-fibre composite parts (CFRP). The
spectacular aerodynamics are a completely new development. The technology behind this racing
car is based on the 911 GT2 RS. There will be a limited production run of 77 units.
ayurvedische Küche
costs due to higher interest rates. The shift in
demand from classic passenger cars (down
compensated for the increase in financing
Sales of passenger cars and light commercial
vehicles (up to 6.35 tonnes) were, at 20.7 mil-
lion vehicles, slightly lower (down 0.6 per cent)
than the high level previously recorded in
the North America region in the 2018 financial
year. Demand on the US-American market
amounted to 17.3 million units, which is the
same level as 2017 (up 0.2 per cent). The
good employment situation and the increase in
purchasing power among consumers largely
Spain (+7.0 per cent) and France (+3.0 per
cent) continued to post above-average
increases, as both countries benefited from
the healthy state of their economies. In Italy,
meanwhile, falling demand from both private
and commercial customers impacted on
market development (minus 3.1 per cent). On
the UK car market, the negative trend of the
previous year was maintained (minus 6.8 per
cent), in part due to the uncertainty of Brexit.
The proportion of diesel vehicles (cars) in
Western Europe fell during the year under
review, reaching 36.4 per cent compared
with 44.4 per cent in 2017.
New registration figures varied from one
major market to another. Sales in Germany, at
3.4 million units, almost matched the previous
year's high level (minus 0.2 per cent). Con-
tributory factors included the good overall
economic situation in Germany, as well as
price discounts in the form of switching and
scrap bonuses for older diesel models and an
environmental bonus for electric vehicles
(both entirely electric and plug-in hybrid
models). The switch to the WLTP and resulting
impact on the availability of some models
subsequently hit the pace of growth.
With 14.2 million new vehicle registrations,
sales on the Western European market were
down 0.7 per cent on the high level recorded
in 2017. The healthy state of the economic
environment as a whole, positive consumer
sentiment and low interest rates combined to
generate a slight increase during the first half
of 2018. The introduction of the Worldwide
Harmonized Light-Duty Vehicles Test Proced-
ure (WLTP) on 1 September 2018 resulted in
lower sales, and significant falls in some cases,
by the end of December.
For the first time following eight consecutive
years of growth, the global automobile market
experienced a dip in sales in 2018. Globally,
82.8 million units were sold during the report-
ing year, 1.2 per cent down on 2017 levels. The
fall in sales can be attributed in particular to
weaker development in the Asia-Pacific region
and in Western Europe in the fourth quarter.
13.1 per cent) to light commercial vehicles,
such as SUVs and pick-up trucks (up 8.0 per
cent), was once again evident in 2018.
Car market
Growth in the US economy rose to 2.9 per cent
(2017: +2.2 per cent), buoyed primarily by
domestic consumer demand. The stable situa-
tion on the labour market and inflation fore-
casts prompted the Federal Reserve to raise
key interest rates in a series of hikes. The US
dollar gained in strength against the euro
during 2018. Meanwhile, the Brazilian economy
recorded slight growth again, expanding by
1.4 per cent (2017: +1.1 per cent). However,
the situation in South America's largest
economy remained tense not least due to
political uncertainty.
In Western Europe, the solid growth in GDP
lost some momentum over the course of the
year, with an increase for the year as a whole
of 1.8 per cent (2017: +2.3 per cent). The
ongoing Brexit negotiations also created a
mood of uncertainty as the future shape of the
relationship between the UK and the European
Union remained unclear. Unemployment
within the eurozone continued to fall, averag-
ing 8.1 per cent (2017: 9.0 per cent). GDP
growth in Germany remained robust in 2018,
supported by the good situation on the labour
market. It was, however, less dynamic than
in 2017, at 1.5 per cent (2017:+2.5 per cent).
The mood in the corporate sector, along with
consumer confidence, deteriorated over the
course of the year.
The global economy continued to record
robust growth during the year under review,
albeit at a slightly reduced pace. Global gross
domestic product (GDP) increased by 3.2 per
cent in 2018 (2017: +3.3 per cent). Economic
momentum in the advanced economies of the
world and in the emerging markets was on a
par with the previous year. With interest rates
remaining comparatively low and higher com-
modity prices overall compared with 2017,
consumer prices also continued to rise across
the world. Increasing trade distortions at an
international level and geopolitical tensions
generated much higher levels of uncertainty.
Dynamic global economy
BUSINESS PERFORMANCE
PORSCHE DESIGN TOWER
MACAN S
The Chinese economy grew by 6.6 per cent in
2018, and therefore not quite as strongly as
in the previous year (+6.9 per cent). China's
trade dispute with the USA resulted in the
Chinese government expanding its programme
of state support measures. India's economy
continued its positive trend, with GDP up
7.2 per cent (2017: +6.7 per cent).
27
The recovery on the South American markets
continued in the reporting year - having start-
ed at a low level - with a 6.2 per cent increase
in demand for passenger cars and light com-
mercial vehicles, thereby reaching 4.5 million
units. The major growth driver was the Brazilian
automotive market, which stepped up the high
growth rates recorded the year before by
exhibiting a 13.8 per cent increase.
Economic growth
Percentage change in GDP
Exidusives
Yoga-Entspannung u
1.8% Western Europe
1.5% Germany
3.2% Global economy
2.9% US
6.6% China
Performance - Important events
2018
2017
Following many years of uninterrupted expan-
sion, the market volume in the Asia-Pacific
region declined by 2.3 per cent to 36.1 million
units in the 2018 financial year. The main
reason for this was the weakness of the
Chinese passenger car market (down 4.6 per
cent). The trade conflict between China and
the USA was one factor that had a negative
impact on business and consumer confidence
in the reporting year, and in the second half
of the year in particular, this resulted in a
significant decrease in demand. The Indian
market, in contrast, was able to continue
its growth trajectory, with an increase in
passenger car sales of 4.8 per cent.
2016
2014
2013
0%
28
0.2%
2.2%
2.6%
2015
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
7.7%
New construction project in Stuttgart
Together with Bülow AG as an investor, and its
subsidiary, Porsche Design, the sports car
manufacturer is planning to make its mark
directly at the Pragsattel, an important traffic
hub in the north of Stuttgart. Standing some
90 metres tall, the Porsche Design Tower will
be one of the tallest office and residential
buildings in Stuttgart and will enrich the city-
scape with its timeless architecture. The
Porsche Centre with a showroom, gallery and
workshop will occupy an area of 9,100 square
metres. The Porsche branch in Stuttgart, which
is currently located opposite the museum at
Porscheplatz in Zuffenhausen, will move into its
new home in late 2021.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
Based on mileage,
model, and vehicle
characteristics, the tool
calculates the amount
that the Porsche cus-
tomers should invest in a
climate project to offset
their emissions.
Porsche Impact enables drivers to offset their
personal CO2 footprint. Based on mileage,
model, and vehicle characteristics, the tool
calculates the amount that the Porsche cus-
tomers should invest in a climate project to
offset their emissions. The Porsche driver can
then choose which internationally certified
projects to support. The available schemes are
distributed across the world and are focused
on hydropower, wind energy and solar energy,
as well as the protection of forests. Porsche
Impact was launched in November with the
world première of the new 911 and is currently
available to customers in Germany, the UK
and Poland as part of a pilot project.
Offsetting carbon emissions with
Porsche Impact
PORSCHE 360+ APP
Hotelübernachtung
25
24
The Porsche Road Trip app unveiled alongside
the new 911 helps driving enthusiasts to
plan, organise and navigate special trips. The
curated routes feature recommendations for
selected restaurants and hotels, which can
also be booked directly via the app. Porsche
Road Trip can also suggest places to stop
en route, at points of interest or viewpoints
along the way.
Porsche Road Trip
New digital tour guide:
Eighth generation of an icon: the new 911
The new 911 celebrated its world première on
the eve of the L.A. Auto Show in November.
It continues to set the standard when it comes
to exclusive sportiness. Unmistakably com-
mitted to the Porsche design DNA, the new
generation has a much more muscular look.
With a completely new interior featuring a
10.9-inch touchscreen monitor, the new 911
is both timeless and contemporary. The next
generation of flat-six turbocharged engines
has been further developed for the typical
sporty performance, with 331 kW (450 hp) in
the S models. The drive efficiency has been
increased by an improved injection process
and a new layout for the turbochargers and
charge air cooling system. Power is delivered
by a newly developed eight-speed dual-clutch
transmission. Additional highlights are the
new assistance systems: these include Porsche
Wet Mode to make driving on wet roads even
safer, and Night Vision Assist with thermal
imaging camera, as well as comprehensive
connectivity which now also uses swarm
intelligence.
WORLD PREMIÈRE OF THE NEW 911
Performance Important events
With its completely new
interior featuring a
10.9-inch touchscreen
monitor, the new 911 is
both timeless and con-
temporary. The latest
generation of flat-six
turbocharged engines
guarantees the sporty
performance for which
Porsche is renowned.
With 331 kW (450 hp) in
the S models, they are
more powerful than ever.
24
PORSCHE ROAD TRIP APP
2 Personen-all inclusive Wellnesspaket
The new 911 GT2 RS Clubsport
PORSCHE IMPACT
The new model in the
718 T
26
26
Ultra-high-power charging
In December, Porsche expanded its range of
compact SUVs with the addition of the
powerful Macan S. The latest model features a
new three-litre V6 turbocharged petrol engine
with a gasoline particulate filter. It delivers
260 kW (354 hp) and has a maximum torque
of 480 Nm, representing an increase of 10 kW
(14 hp) and 20 Nm compared with the previ-
ous model. With the optional Sport Chrono
Package, the new Macan S accelerates from
zero to 100 km/h in just 5.1 seconds, an
improvement of 0.1 of a second. The car's top
speed is 254 km/h. The Macan S enjoys all the
product innovations of the latest-generation
Macan model range including a three-dimen-
sional rear LED light panel, and the new
fully connected Porsche Communication
Management (PCM) system, which features
a 10.9-inch interior touchscreen.
New Macan S with V6 turbo engine
It could soon be as quick to charge an electric
vehicle as it is to fill up a vehicle with fuel
today. This, at least, is the interim result from
the "FastCharge" research project, in which
Porsche is involved. A prototype for a charging
station with an output of up to 450 kW located
between Ulm and Augsburg was presented
in December. A Porsche research vehicle with
a net battery capacity of approximately
90 kWh achieved a charging capacity of over
400 kW, which equates to a charging time of
less than three minutes for the first 100 km
range. The new charging station is suitable for
electric models of all brands with the European
standard Type 2 variant of the widely used
Combined Charging System (CCS), and is now
available for use free of charge.
Commitment to greater sustainability
Porsche joined the Saxony Environmental
Alliance in December. The members of the
Alliance engage in voluntary environmental
actions that are visible and set an example for
others to follow. Since its foundation 18 years
ago, the Porsche factory in Leipzig has been
one of the most modern and sustainable
automobile factories in the world. In the years
since 2015, for example, energy efficiency
measures have saved a total of 9.3 gigawatt
hours of electricity. This corresponds to the
average annual consumption of approximately
1,900 four-person households.
As well as the 911, the 911 GT2 RS Clubsport
was also unveiled in Los Angeles in November.
The 515 kW (700 hp) racing version of the
road-legal 911 GT2 RS sports car is limited to
200 units and can be driven at clubsport
events as well as selected motorsport meets.
Like the high-performance sports car, the 911
GT2 RS also has a state-of-the-art 3.8-litre
flat-six twin-turbo motor. Thanks to a map
switch on the centre console, these assistance
systems can be adjusted separately or
switched off completely, depending on the
driving situation.
Puristic design, maximum driving pleasure
With the 718 T, Porsche transferred the
puristic design of the 911 T launched back in
1968 to its line of two-seater sports cars in
December. The new model in the Boxster and
Cayman ranges combines the 220 kW
(300 hp) turbo four-cylinder boxer engine
with a particularly emotional Porsche driving
experience. The high-performance character
of the T models is emphasised by an extensive
equipment package, which includes 20-inch
alloy wheels, the PASM sports chassis lowered
by 20 millimetres - which is being offered in
combination with the 2.0-litre turbocharged
engine for the first time in this line - the
shortened gearshift, on which the gears are
emblazoned in red, and the Sport Chrono
Package. These features can only be enjoyed in
combination with the basic engine in the 718 T.
Boxster and Cayman
ranges combines the
220 kW (300 hp) turbo
four-cylinder boxer
engine with a particularly
emotional Porsche
driving experience.
911 GT2 RS CLUBSPORT
Since its foundation 18
years ago, the Porsche
factory in Leipzig has
been one of the most
modern and sustainable
automobile factories in
the world. In the years
since 2015, for example,
energy efficiency
measures have saved a
total of 9.3 gigawatt
hours of electricity.
Environment &
Energy
Local/city administra-
tions at site locations
Internal
Customers & residents
Product
Responsibility
PORSCHE
Porsche Centres
Business partners
Employees &
Society
Business &
Customers
Sport associations/sport
clubs
Suppliers
Science
Schools
44
Social initiatives
Politicians & authorities
EU institutions
Kraftfahrtbundesamt
(German Federal Motor/
Transport Authority)
State Parliaments/
Federal Parliament
State ministries/
Federal ministries
Partners in society
Trade unions / associations
(GRI 102-40, 102-42, 102-43, 102-44)
of the Automotive
During the year under review two Porsche
sites organised a week dedicated to the topic
of sustainability. Featuring an interactive
experiential world and various expert talks, this
initiative helped to further raise awareness of
sustainability issues among Porsche staff.
Employees made numerous new suggestions
on how the company could improve its every-
day sustainability even further. These pro-
posals are now being carefully considered in
the relevant departments and will be followed
up. Internal stakeholder dialogue on sustain-
ability issues is to be extended further still in
future in order to promote understanding
Universities/
colleges
(GRI 102-40, 102-43, 102-44, 102-47)
Direct dialogue is an essential component of
Porsche's corporate culture. Employees have
a wide range of opportunities to contribute
their own concerns and have broad access to
transparent interaction channels and infor-
mation, for example through the employee
magazine, local site newsletters, the in-house
TV channel and also the intranet, for up-to-
the-minute news. Since 2017, employees have
been able to download an app to access the
Porsche intranet on their own devices. Regular
works and departmental meetings, employee
information events and specific topic and
innovation weeks also form part of the diverse
programme of internal communications.
of the subject within the company and to build
on employees' role as knowledge multipliers
in the outside world.
The company always encourages its employees
to contribute their own ideas through its
internal ideas and innovation management
set-up. Complaints and personal concerns are
treated in confidence where requested.
Porsche has an ombudsman system to handle
anonymous complaints and reports on any
illegal behaviour in relation to the company.
At Porsche all staff and their elected repre-
sentatives are informed comprehensively
and in good time of any major operational
changes. Adherence to this corporate practice
is ensured in several different ways, including
by means of a Supervisory Board with equal
representation, the Works Council committees,
regular works meetings and the continuous
maintenance of the works agreement database
on the intranet.
Our stakeholders
The most important internal and external stakeholders for the company,
established on the basis of internal analysis.
Individual Porsche
drivers
Porsche
Clubs
Residents at site
locations
Volkswagen
Group
Works
Council
Employees
Südwestmetall
(Baden-Württemberg
employers' association)
IG Metall (indus-
trial union)
Chambers of Industry
& Commerce/
Chambers of Skilled
Trades & Crafts
Verband der Auto-
mobilindustrie e.V.
(German Association
Industry (VDA))
Student
EXTERNAL
Sustainability
experts/networks
Sustainability Board = Porsche Executive Board
Set direction for sustainability
Commission reporting
Sustainability Expert Group
Develop strategic aims and statements on sustainability
Define indicators and lighthouse projects
Set content of reporting
Specialist departments and committees
Provide representatives for Sustainability Expert Group and inform them about
current topics, provide data for reporting
INTERNAL
46
46
47
|
|
Sustainability Council
Source of advice and impetus
|
I
I
I
I
|
|
Internal dialogue
Performance - Sustainability strategy and sustainability management
Porsche Strategy 2025
Sustainability management
Board and setting the
company's basic strategic
direction.
on sustainability, meeting
regularly as the Sustainability
A transparent internal
structure with defined roles
and responsibilities allows
sustainability topics to
be handled rigorously and
effectively throughout the
business. The Executive
Board of Porsche AG acts
as the highest authority
Cultural
institutions
Performance - Sustainability strategy and sustainability management
45
I
I
I
I
||
|
I
initiatives
|
Sustainability organisation
(GRI 102-46, 103-1)
A transparent internal structure with defined
roles and responsibilities allows sustainability
topics to be handled rigorously and effectively
throughout the business.
The Executive Board of Porsche AG acts as
the highest authority on sustainability,
meeting regularly as the Sustainability Board
and setting the company's basic strategic
direction. It also decides on the realisation of
far-reaching sustainability measures and
lighthouse projects.
The sustainability team of the Policy and
External Relations department acts as
an interface for all aspects of sustainability
within the business. It is responsible for the
coordination of all sustainability activities,
implementation of the sustainability strategy
and reporting, as well as integration with
the Volkswagen Group's encompassing sus-
tainability activities. Additionally, it organises
internal and external communications and the
continual expansion of stakeholder dialogue.
The Sustainability Expert Group is responsible
for developing the content of sustainability
activities and submitting appropriate propos-
als to the Executive Board. It brings together
members from all departments and meets
four times per year. The standing members of
the Expert Group represent all of the relevant
specialist departments in the company, where
they act as multipliers for sustainability topics.
During the reporting year the Group was
extended to include representatives from the
relevant German subsidiaries. In order to
further reduce the complexity of sustainability
management within the Porsche Group,
the Expert Group is being expanded on an on-
going basis.
Meanwhile, the Porsche Sustainability Council
was established back in 2016, marking a key
step forwards in terms of greater stakeholder
dialogue. This Council has been an important
source of ideas and impetus ever since. It is
composed of internationally renowned repre-
sentatives from the scientific and public com-
munities. Its current members are: Prof. Sonja
Peterson, Prof. Lucia Reisch, Prof. Maximilian
Gege, Prof. Ortwin Renn and Prof. Klaus Töpfer.
The Porsche Sustainability Council was con-
vened on two occasions in 2018, on one
occasion sitting together with the Porsche AG
Executive Board. The members of the Council
were given greater involvement in processes
relevant to management during the year under
review, including during discussion of strategic
sustainability management and the intensifi-
cation of stakeholder dialogue. Both of these
areas have been consistently taken forward.
Cooperation with the Council is to be stepped
up even further in 2019.
Sustainability Team
Interface for relevant topics
Cooperating in networks and engaging in
sustainability initiatives and working groups
also form part of Porsche's stakeholder
dialogue as it works to drive forward ecologi-
cal, economic and social issues. Against
this background, Porsche has been a member
of the Bundesdeutscher Arbeitskreis für Um-
weltbewusstes Management e.V. (B.A.U.M. -
German Environmental Management
Association) since 2016. In 2017, Porsche
joined the German Business Ethics Network
(DNWE) and became a signatory to the state
of Baden-Württemberg's WIN! charter for
sustainable business, marking its commitment
to entrepreneurial responsibility. Since 2018,
Porsche has also been one of the cooperation
partners involved in the "nachhaltig.digital"
competence platform. The aim of the joint
project on the part of B.A.U.M. e.V. and the
German Federal Environmental Foundation
(DBU) is to make digitalisation a tool for
future-proof, sustainable development. The
company also engages in dialogue with
local politicians through an inter-municipal
working group.
In addition to the official certifications, Porsche
also carries out internal reviews of compliance
with environmental and energy legislation
Porsche highly values direct feedback from
its interest groups. Through a dedicated e-mail
address (sustainability@porsche.com), the
company offers stakeholders a way of contact-
ing the responsible department directly.
Product
Responsibility
Business &
Customers
Porsche Strategy 2025
Sustainability action areas
SDG 4 - Quality education
For Porsche, education is the key to sustainable
development. This is why the company offers
its trainees and staff an exceptionally diverse
programme of vocational and professional
training, giving every single employee the
opportunity to engage in systematic training
tailored to their needs. Internationally too,
Porsche is heavily committed to education and
science, not least through its Porsche Training
and Recruitment Centers in Manila and South
Africa, and its Mobile Education Training
and Resource Units (METRU), a joint project
with UNICEF.
SDG 8 - Decent work and economic growth
Creating jobs and respecting human rights
along the entire supply chain are prerequisites
for value-creating, sustainable growth.
Porsche not only assumes responsibility for
its employees and invests in their future. It
also imposes strict, internationally recognised
standards on its suppliers in the area of social
and human rights. In this way, Porsche
supports humane working conditions while
categorically rejecting any form of forced or
child labour.
SDG 9 - Industry, innovation and
infrastructure
Porsche is synonymous with innovative prod-
ucts and services, and the theme of mobility
of the future is a top priority. By expanding
a high-performance charging infrastructure for
electric vehicles, permanently working to find
innovative solutions, and trialling digital
technologies and future trends, the company
is playing an instrumental role in this field.
SDG 11 - Sustainable cities and communities
Sports car production at the main plant in
Zuffenhausen is located in a mixed-use zone,
surrounded by residential areas. Consequently,
the company is directly confronted with the
challenges posed by increasing urbanisation.
This is another reason why Porsche feels a
sense of duty to actively contribute to the sus-
tainable development of cities by providing
smart solutions. Resource-efficient production
processes and products, as well as techno-
logical and social innovation, are the key factors
for the company in this regard.
SDG 12-Responsible consumption
and production
As well as consistently working to create en-
vironmentally sound products that use fewer
resources, Porsche is also constantly develop-
ing efficient, environmentally compatible
production processes. The economic, eco-
logical, sociocultural, functional and technical
process qualities all play a central role. Mean-
while, the company sees it as just as important
that internationally accepted rules governing
health and safety and environmental protec-
tion are upheld. Ethical considerations and
standards take precedence along the entire
Porsche supply chain as the overriding sus-
tainability requirements.
SDG 13 - Climate action
Porsche is embracing the challenge of pushing
technological boundaries, reducing fuel
consumption and developing innovative drive
systems. The conservation of raw materials
and energy is another huge priority. The com-
pany now uses 100 per cent green energy to
supply the power needed for production.
In 2019, Porsche's first fully electric sports
car, the Taycan, is due to leave the production
line in Zuffenhausen. The production process
for this model is carbon neutral. Meanwhile,
the company is consistently cutting levels of
CO₂ emissions from its own fleet. As its devel-
opment of hybrid and electric models gathers
pace, Porsche is making an important con-
tribution to global climate protection and to
improving air quality in cities.
SDG 17 - Partnerships for the goals
Sustainable mobility solutions and a livable
world for the future can only be created by
working together. This is why a process of per-
manent exchange with stakeholders and the
strengthening of partnerships are two of the
main goals of Porsche's sustainability strategy.
The expectations of
its internal and external
stakeholders are im-
portant to Porsche.
With this in mind, in
2017 stakeholders
were surveyed on what
they regarded as the
most relevant SDGs for
Porsche. Seven goals
were identified, and are
now areas in which the
company is using its
sustainability activities
to make a real difference.
The company is actively involved in a range of
networks and is committed to sustainability
initiatives. Through these collaborations,
Porsche is supporting the transfer of knowl-
edge for innovative and future-oriented
approaches shaped around sustainability.
SUSTAINABLE
DEVELOPMENT
STRATEGY AND ORGANISATION
GOALS
(GRI 102-46)
Sustainability is a top priority for Porsche. We
consider it our entrepreneurial duty to make
sure that our actions benefit the environment
and society. Our stakeholders also expect
Porsche to strive for economic, social and eco-
logical goals equally. This gives sustainability
a central significance for Porsche when it
comes to safeguarding its competitiveness.
- Business & Customers
In autumn 2015 the General Assembly of
the United Nations adopted its seventeen
Sustainable Development Goals (SDGs). The
SDGs are at the heart of the 2030 Agenda
for Sustainable Development, the aim of which
is to reconcile economic progress, social
justice and environmental compatibility.
Sustainable Development Goals
41
Performance - Sustainability strategy and sustainability management
In order to reduce the complexity of sustain-
able actions while also improving measurability
and control, the company developed the
Porsche Sustainability Index during the year
under review. This Index defines sustainability
aspects using key figures and also depicts
the key indicators of value-creating growth and
environmental footprint. Based on the classic
sustainability dimensions of economic, eco-
logical and social issues, the index is based on
the Porsche value chain. The central goal of
Sustainability is implemented on a Group-wide
basis. Porsche has therefore incorporated fur-
ther relevant subsidiaries into its Sustainability
Expert Group. Each part of the business is also
represented by employees in this Expert Group
which is responsible for implementation of
the cross-cutting strategy on sustainability.
In order to implement sustainable action in
daily practice and to achieve even more
stringent implementation in the company,
Porsche is working on a "Group Sustainability
Directive". The Directive will contain binding
rules on organisational processes, topic
management, project implementation and
communication of all sustainability topics.
all strategic considerations and aims are
structured around these four areas.
All activities relating to sustainability, and
- Employees & Society
Energy
Environment &
MATERIALITY ANALYSIS
PORSCHE
Employees &
Society
- Environment & Energy
- Product Responsibility
40
40
Assuming responsibility
for society and the
environment does not
run counter to our aims
of efficiency and eco-
nomic success. Sustain-
ability is therefore a key
cross-cutting issue
in the Porsche Strategy
2025.
the Porsche Sustainability Index is to combine
economically successful action with social
commitment and simultaneous reduction in
the company's environmental impact. The aim
for the sustainability index is to be recorded
half-yearly in future, and compared against the
targets set. In this way, Porsche can consis-
tently develop its commitment to sustainability.
Assuming responsibility for society and the
environment does not run counter to our
aims of efficiency and economic success.
Sustainability is therefore a key cross-cutting
issue in the Porsche Strategy 2025.
Responsibility for this lies directly with the
Chairman of the Management Board. Our aim
is very clear: Porsche wants to be the most
sustainable sports car manufacturer in the
premium segment. Consequently, the issue of
sustainability is firmly embedded throughout
the company and broken down into four core
action areas:
The United Nations' goals for
sustainable development
3 W
Good health and
well-being
14
Life below water
15-
Life on land
16 ▾
Peace, justice and strong
institutions
17 ®
Partnerships for
the goals
42
Performance - Sustainability strategy and sustainability management
43
Start-ups/
partnerships
STAKEHOLDER MANAGEMENT
Stakeholder communication and dialogue
(GRI 102-40, 102-42, 102-43,
102-44, 102-46)
Porsche is particularly concerned with foster-
ing and consistently building on a process
of exchange with its stakeholders. The com-
pany is aware that its business activities
impact on the interests of many different
groups. The expectations of these groups
must be taken into consideration when dealing
with central issues. The open and transparent
exchange of information and arguments lays
the foundation for mutual understanding and
social acceptance. At the same time, this
dialogue provides the company with important
suggestions and new impetus. Once again
during the reporting year Porsche continued
to pursue its goal of engaging in exchange
that benefits all stakeholders, stepping up
its dialogue activities to improve stakeholder
relations. Porsche's first Sustainability
Days promoted proactive exchange with
employees. Working relationships at the heart
of initiatives, associations and working groups
dedicated to entrepreneurial sustainability
were advanced further. Since 2018, for
example, Porsche has been supporting the
competence platform "nachhaltig.digital"
in order to be intensively involved in the link-
up between the two themes, sustainability
and digitalisation.
External dialogue
(GRI 102-40, 102-43, 102-44,
102-47, 102-48)
External stakeholder dialogue is based
on trust which is at the heart of any
long-term relationship between Porsche
and its dialogue partners. Credible exchange
with the stakeholders must be geared to-
wards the long term and be nurtured on an
ongoing basis.
This takes place via a diverse range of com-
munication channels and event formats.
The most important sources of information
for thought leaders, decision makers and
customers include the Porsche magazine
Christophorus, published in twelve languages
around the world, the online newsroom with
its Twitter and Instagram channels, the
web-based TV channel 9:11 Magazin and the
Porsche website. The community newspaper
"targa Nachrichten für die Nachbarn"
("targa", the residents' journal), launched in
2015, keeps local residents who live in
proximity to Porsche's sites up to date with
the latest news. Information letters are also
used to keep stakeholders informed on, for
example, plans for future construction work.
Stakeholder surveys are carried out every
two years as part of a systematic process
to learn about relevant groups' views and
expectations in relation to the issue of sustain-
ability. In 2017 around 7,200 stakeholders
from Germany, China and the UK were invited
to complete an online survey. The respondents
included customers, business partners,
representatives from authorities, associations,
trade unions and non-governmental orga-
nisations, and politicians, scientists and
sustainability experts. The issues identified
provide the basis for sustainability aspects
which are closely linked to other aspects of
the corporate strategy.
Climate
action
13
Responsible consumption
and production
12 GO
6 7
Clean water and
sanitation
Industry, innovation
and infrastructure
1
t
No poverty
4
Quality education
7 %
Porsche also seeks to address stakeholders
personally. Regular dialogue events have
been held across Porsche sites since 2016.
These events give local residents a chance
to raise specific questions with the experts
directly. Porsche held two events in 2018
designed to update its neighbours on the
state of building work at its sites. More than
500 members of the public took up this
opportunity to learn about the projects, ask
questions, make suggestions or express
their opinions.
Affordable and
clean energy
Reduced inequalities
2
SSS
Zero hunger
5 9
Gender equality
8 M
Decent work and
economic growth
11
Sustainable cities
and communities
10 <>
Stakeholder survey
The expectations of its internal and external
stakeholders are important to Porsche. With
this in mind, in 2017 stakeholders were
surveyed on what they regarded as the most
relevant SDGs for Porsche. Seven goals were
identified, and are now areas in which the
company is using its sustainability activities
to make a real difference:
Since 2013, Porsche has conducted a survey
every two years to gather the views and ex-
pectations of its stakeholders on the subject
of sustainability. In autumn 2017, approxi-
mately 7,200 representatives of relevant
stakeholders were contacted as part of an
anonymous and international online survey.
This was three times as many stakeholders as
in the 2015 survey. Responses were received
from some 950 people including customers
(67.3%), business partners and analysts/
investors (7.5%), politicians and public author-
ities (4.8%), NGOs (3.0%), Porsche employees
(2.7%), academics (2.4%) and other partici-
pants (12.3%). The survey was also completed
by respondents from China and the UK for
the first time.
The long service life of Porsche vehicles, their
high-quality workmanship and the use of low-
wear materials all form part and parcel of the
Porsche principle. The company is focusing to
an ever greater extent on the environmental
effects of a vehicle across its entire life cycle,
from the acquisition of raw materials and the
vehicle's manufacture and use through to its
disposal. The aim is to achieve a total eco-
logical optimum.
Electric vehicles, for example, do not cause
environmental damage when they are being
driven, which helps to improve air quality in
built-up areas. Conversely, however, the en-
vironmental impact of the manufacturing pro-
cess is on the increase as a result of the raw
materials and production processes used for
components such as traction batteries. To-
gether with its suppliers, Porsche is therefore
working to make improvements to the battery
manufacturing process in order to conserve
resources, cut the energy density further and
improve performance. Against this back-
ground, the Battery Recycling Working Group
was set up during the year under review in
order to tackle the key questions of what hap-
pens to old batteries once they are no longer
fit for use. Information and project findings
from the relevant departments are being ana-
lysed, and the Working Group is submitting
recommendations to the Porsche Group which
are then being put into practice. A pilot project
is running in parallel in the Aftersales depart-
ment, as part of which used traction batteries
are being recycled for use as energy stores as
part of a second life concept. In this way,
resources can be conserved and sustainability
enhanced.
Optimal and environmentally compliant vehicle
production is an ongoing task for Porsche.
This naturally also applies to the selection of
sustainable materials and consideration of life
cycles. The company has been scrutinising
both of these areas as part of its 2025 strategy.
Consequently, environmental aspects are
already being given greater weighting in the
Performance Sustainability strategy and sustainability management The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161. 55
pre-development phase and taken into account
at an early stage in the project award process.
Measures are also in place to raise project
managers' awareness of ecological issues even
further. The company is also a heavy promoter
of the recycling of raw materials, the extraction
and processing of which required a high level
of effort.
In this report, the topic of "Materials and sus-
tainable raw materials" is covered in accord-
ance with the rules of the Global Reporting
Initiative by the indicator GRI 301: Materials.
The indicator is measured and reported in
terms of the annual consumption of materials.
New mobility concepts
Urbanisation, increasing prosperity, a world-
wide increase in mobility and the associated
higher environmental pollution trigger innova-
tion and market dynamics for the adaptation
of the automobile and its use. These factors
are leading to a diversification of drive con-
cepts in a move towards highly efficient, alter-
native concepts. At the same time, however,
more and more new and attractive mobility
concepts are also being researched and devel-
oped. Digitalisation and connectivity, as well
as customers' desire for more flexibility and
sustainability, are accelerating this change. In
the 2017 materiality analysis, Porsche stake-
holders underlined the huge significance of
this turnaround.
Porsche is developing innovative products and
services to shape flexible and comfortable
mobility. These include innovative parking
solutions, needs-driven vehicle usage, seam-
less integration with other forms of transport
and the best possible use of electric vehicles
thanks to optimised charging options. Agile
and interdisciplinary teams are developing
models that take their lead from customers'
latest requirements. This development is
underpinned by close cooperation between
the company's different departments and an
open information policy, as well as by early
piloting and stakeholder involvement.
The mobility options offered to employees are
another key area. An interdepartmental project
has been launched to determine how to im-
prove the traffic situation and the mobility of
staff at Porsche's sites around the world for
the long term. The project is particularly rele-
vant to the main plant in Zuffenhausen, which
is located in an urban area. The employees
based there receive a monthly subsidy towards
local public transport costs. In addition, the
availability of parking at the plant, and mobility
around the site grounds have also been signifi-
cantly improved. Porsche manages the daily
56
delivery traffic as efficiently as possible which
is why Logistics is already making use of
three natural-gas trucks, one e-hybrid truck
and two electric trucks.
In order to make mobility fit for the future and
make smart cities a reality, Porsche also
combines attractive mobility offers, technical
expertise and digital solutions. In the year
under review, Porsche and the PTV Group, the
world market leader in the development of
intelligent software solutions and integrated
traffic concepts, examined measures for the
liquefaction and relocation of traffic in the
Ludwigsburg model area. These included inno-
vative approaches such as a change in traffic
management, a shift to public transport or the
strengthening of inner-city cycling.
Porsche Consulting has also optimized the
road construction site "Am Kräherwald" in
a cooperation with the city of Stuttgart spon-
sored by Porsche. The aim was to significantly
accelerate the construction project compared
to a road section completed in 2017. The
Porsche subsidiary introduced a new system
for planning and controlling the construction
site, which accelerated the construction time
by more than 80 per cent and thus reduced
congestion and emissions.
Materials and sustainable materials
Materials and sustainable raw materials are
the building blocks of modern, future-ready
vehicle architecture. The Porsche stakeholders
surveyed as part of the 2017 materiality
analysis also assigned a high level of relevance
to this issue.
ENVIRONMENT & ENERGY
this indicator refer, however, solely to emis-
sions that arise in production and adminis-
trative operations. For this reason, the
consumption and emission figures for all
vehicle models are reported instead.
of February 2018 Porsche no longer included
any diesel models in its portfolio. The company
made the decision in September 2018 to no
longer offer any diesel models.
The Product responsibility action area covers
the topics identified in 2017's materiality
analysis, namely "Vehicle safety", "Fuel con-
sumption and vehicle emissions", "Materials
and sustainable raw materials" and "New
mobility concepts". Clearly defined processes
and skills are in place for these topics, along-
side transparent evaluation procedures.
Vehicle safety
Vehicle safety is of the utmost importance to
Porsche, with the safety of the vehicle's occu-
pants being the top priority. In addition,
making sure that other road users are also kept
safe is another key aim. For their part, Porsche
stakeholders place a great deal of importance
on vehicle safety. During the sustainability
survey conducted as part of 2017's materiality
analysis, stakeholders ranked this topic in first
place, not least due to its economic relevance
and social importance.
Vehicle safety is a decisive criterion from the
outset in the development of innovative,
state-of-the-art vehicles. Alongside accident
prevention by fitting vehicles with ABS or
ESP systems or automatic emergency braking
systems - one of the main goals is to reduce
the effect of an accident on the vehicle's
occupants. With this in mind, during the devel-
opment phase of a new model the deformation
behaviour of the vehicle body is precisely
defined for a variety of frontal, lateral and rear
end impacts. Vehicles are also fitted with a
smart restraint system consisting of airbags
and seatbelts. Crash tests are used to check
the effectiveness of the safety systems. In a
controlled crash the impact of the entire vehicle
slamming into an object, such as a wall, is
investigated. Crash test dummies with sensors
are used, which allows an evaluation of the
possible injuries of the occupants. Specific
biomechanical limits must be adhered to, stipu-
lating such parameters as maximum accel-
eration or deceleration of the head.
In addition to carrying out complete vehicle
crash tests, component tests and computer
simulations are used during development
to tune the complete vehicle system and its
behaviour in an impact and continuously
54
improve it until it is ready for series production.
The Porsche safety strategy defines the
underlying requirements, not only complying
with statutory rules across the world but also
meeting internal company requirements. The
latter extend beyond the minimum required
by law and involve a significantly broader load
case portfolio. In this way, Porsche can ensure
that, in the event of an accident, its drivers
and their passengers, as well as other road
users, benefit from the high level of protection
synonymous with Porsche.
The ultimate vision in terms of vehicle safety is
the general avoidance of accidents. Porsche
is therefore consistently working on the devel-
opment of anticipatory systems. In this way,
vehicle safety at Porsche will continue to make
an important contribution to general road
safety in the future.
In accordance with the rules of the Global
Reporting Initiative, the topic of "vehicle safety"
is covered in this report by the indicator
GRI 416: Customer Health and Safety.
Fuel consumption and vehicle emissions
Electrification and digitalisation are responsible
for radical change in automotive construction.
For its part, Porsche is embracing this chal-
lenge. The company builds sports cars that
reconcile apparent contradictions: tradition
and innovation, performance and day-to-day
usability, functionality and design, and
exclusivity and social acceptance.
At the same time, fuel consumption and ve-
hicle emissions have a key role to play. After
vehicle safety, they were identified as the
second-most important topic by stakeholders
in the 2017 materiality analysis. Their materi-
ality to Porsche is also evidently clear within
the company: fuel consumption and vehicle
emissions are key issues with regard to com-
mercial relevance, yet they also have significant
ecological and social consequences. Con-
tinuous efficiency gains, the development of
alternative drive technologies, falling fuel con-
sumption and lower emissions - for Porsche,
resource-saving and environmentally friendly
mobility is a primary strategic target.
In addition to a wide range of measures to
increase efficiency - from lightweight con-
struction and technologies for the optimisation
of conventional combustion engines to the
use of smart assistance systems - Porsche
is increasingly exploiting hybridisation and the
complete electrification of its model range.
The themes of "electromobility" and "vehicle
architecture of the future" are cornerstones
of the Porsche Strategy 2025. The Taycan,
In addition to a wide
range of measures to
increase efficiency
- from lightweight
construction and
technologies for the
optimisation of conven-
tional combustion
engines to the use of
smart assistance
systems - Porsche is
increasingly exploiting
hybridisation and the
complete electrification
of its model range.
Porsche's first all-electric model, is redefining
sports car construction in terms of perform-
ance, driving dynamism and range.
Optimising consumption is one side of
resource-saving mobility; reducing harmful
emissions is the other. Modern exhaust after-
treatment systems reduce emissions, regard-
less of the current discussion surrounding
diesel engines. In late October 2018, Porsche
recalled its diesel Macan with the 3.0-litre V6
engine in emission class Euro 6 for a software
update after irregularities were found in the
engine control software. Germany's Federal
Motor Transport Authority (KBA) had ordered
a recall for a software update in July 2018 in
order to remedy the issue. On 1 August 2018,
the KBA approved Porsche's proposed soft-
ware update for the Macan with the 3.0-litre
V6 diesel engine in emission class Euro 6.
Porsche had already recalled diesel Cayennes
with the 3.0-litre V6 engine in emission class
Euro 6 in Germany during the previous year.
Investigations had revealed irregularities in
the engine control software for these vehicles.
The KBA had ordered a recall for a software
update in order to remedy the issue. In mid-
October 2017, the FBA approved Porsche's pro-
posed software update for its diesel Cayenne
with the 3.0-litre V6 engine in emission class
Euro 6. Porsche has since recalled the vehicles
concerned for a free software update.
During the reporting year, the KBA issued
Porsche with recall notices for the Cayenne
4.2-litre V8 diesel (Euro 5 and Euro 6) and
Panamera 4.0-litre V8 diesel (Euro 6). As soon
as the technical solution has been approved,
vehicle owners will be contacted accordingly
by their Porsche dealers.
Porsche consistently aligns its product range
with its customers' wishes and strives to
achieve technological leadership. Demand for
diesel vehicles is falling. Traditionally, the
diesel segment has been less important to
Porsche, accounting for just 12 per cent of
business in 2017. At the same time, interest
in hybrid models is soaring. As far as the
Panamera is concerned, 63 per cent of the
vehicles delivered in Europe are hybrids. As
In accordance with the rules of the Global
Reporting Initiative, the topic of fuel consump-
tion and vehicle emissions is covered in this
report by the indicator GRI 305: Emissions.
The figures in this report that are required for
Porsche develops high-quality, innovative and
long-lasting products. With each new model
generation, Porsche consistently sets new
standards in quality, environmental friendli-
ness and safety across the entire life cycle of
all vehicles.
Sustainability principle
on a continuous basis along the entire value
chain, and improvements are made where
necessary.
The patrons of this corporate culture are
Porsche Chairman of the Executive Board Oliver
Blume, Porsche HR Board Member Andreas
Haffner and Uwe Hück, Chairman of the Group
Works Council. These individuals embody the
Porsche code, which draws on the new culture
guidelines comprising the four elements of
dedication, pioneering spirit, sportiness and
58
family. The Porsche code replaced the previous
leadership guidelines during the year under
review, and all Porsche managers are taking
part in "leadership labs" to help implement it.
Porsche greatly strives to ensure that its staff
can achieve a work-life balance. Employees
receive support through a wide variety of dif-
ferent measures. Thanks to local cooperation
partners, sufficient childcare places are avail-
able in nurseries located in proximity to the
company's sites. Through its family service,
Porsche offers free, individualised and compre-
hensive support for all family life situations.
Porsche also provides flexible working options
with respect to place of work and working
hours. Options agreed with the Works Council
range from arrangements for working from
home and flexitime aligned to the employee's
current phase of life through to time off to care
for family members. Employees may also take
voluntary sabbaticals. Job sharing in leadership
roles has also proven to be successful in a pilot
project and is now being rolled out further.
In this report, the topic of "employer attrac-
tiveness" is covered in accordance with the
rules of the Global Reporting Initiative by
the indicator GRI 401: Employment. This indi-
cator is measured and reported on the basis
of the following key figures: total workforce,
employee structure, new hires and employee
turnover, and parental leave claims.
Staff development
To be optimally prepared for the challenges
facing the automotive industry, Porsche iden-
tifies and retains qualified and enthusiastic
professionals and managers. The pillars of HR
work at Porsche include needs-based training
that focuses on future requirements, ongoing
skills acquisition, and options and routes for
internal development. In the 2017 materiality
analysis, stakeholders rated the topic of
employee development as highly important.
Consequently, Porsche is striving to achieve
continuous improvement in this area.
Staff development is founded on professional
training as well as the support and qualifica-
tion of students, for example through training
options for dual-study programme students
and the Porsche Trainee Programme. Another
important component is the hiring on the
basis of permanent contacts of all apprentices
who pass their final examination. Throughout
their careers, employees have access to a
diverse range of programs for their systematic
professional development on all levels. These
include the "Porsche Warm-up" introduction
programme for all new hires, the "Porsche
Development Programme" to prepare
The continuous devel-
opment of its corporate
culture is exceptionally
important to Porsche,
particularly against
the backdrop of the
strong growth in staff
numbers in recent
years, and the com-
pany's new focus
on electric technology,
digitalisation and
connectivity.
candidates to take on management roles, and
specific qualification and talent promotion
measures tailored to the target group in the
field of production.
Porsche also runs two modular and interna-
tionally oriented training programmes for
managers: the "Porsche International Manage-
ment Programme", which has been specially
designed for second level managers, and the
"Porsche Advanced Management Programme"
targeted at senior managers.
Employee support and qualification is not only
a central component of the Porsche culture
and code, but is also firmly anchored in the
Porsche Strategy 2025. The digital revolution
in particular is placing new demands on the
workforce. This is why it is important to foster
shared knowledge of the various aspects of
the digital revolution in general and of digitali-
sation at Porsche in particular. With this in
mind, the Fit for Digit@l initiative launched
during the previous year was rolled out across
the Group with significantly more content
added. "Work and values in transition", "The
core of digitalisation" and "Digital transfor-
mation at Porsche" are now fixed components
of the programme.
Employee support and qualification is also a
tool used for strategic leadership and planning
processes. Individual training requirements
are identified during annual employee apprais-
als, and relevant development opportunities
established on this basis. The comprehensive
range of training opportunities and individual
staff development programmes are continu-
ously being expanded and optimised in consul-
tation with the Works Council. Here too, skills
relating to the digital world and the digital
mindset are crucial.
Important cornerstones for digital learning are
the Porsche learning platform introduced last
year and the new media laboratory, enabling
the departments to produce their own digital
learning formats. HR Development and more
than 150 trained representatives from the
individual departments regularly update the
platform content. The fact that there are now
over 24,000 user profiles illustrates the extent
to which self-managed learning is being ac-
tively embraced by Porsche employees as they
look to advance their skills.
The "Lernen@Porsche-Community" group was
created during the development of the learning
platform. Led by HR Development, this com-
munity is composed of stakeholders who are
responsible for specialist training in their par-
ticular areas. The aim of the group is to enable
an exchange of knowledge across departments
on all areas relating to skills, digital learning
and blended learning. Meanwhile, the didactic
and methodological structure of digital learn-
ing formats is also discussed. In this way,
synergies can be harnessed across the network
as a whole, creating opportunities for more
flexible and sustainable learning.
Against the background of the Porsche Strategy
2025 and the far-reaching changes in the
automotive industry, the structured creation
and expansion of critical skills among all
employees is a vital aspect of HR development
activities. The "Strategic Skills Management"
pilot project initiated during the previous year
has been successfully concluded. The process
of upscaling the project to encompass a full
department began in 2018. The aim of stra-
tegic skills management is to systematically
determine the skills needed for the future and
to introduce measures to achieve these. Based
on current and future roles, the required skills,
capacities, job descriptions and requirements
are recorded. Future tasks and skills yet to
be acquired are then compared against each
other by means of a fit-gap analysis. Any iden-
tified skill gaps can thus be addressed at an
early stage through targeted re-training and
further training, recruitment and new priorities
in ongoing training.
In this report, the topic of "staff development"
is covered in accordance with the rules of
the Global Reporting Initiative by the indicator
GRI 404: Training and Education. This indicator
is measured and reported on the basis of
the following key figures: the number of partici-
pants in training measures and the average
training hours per employee. A survey is cur-
rently being carried out for Porsche AG and
Porsche Leipzig GmbH with an ongoing expan-
sion to include the Porsche AG Group planned
for the future.
Performance Sustainability strategy and sustainability management
59
The continuous development of its corporate
culture is exceptionally important to Porsche,
particularly against the backdrop of the strong
growth in staff numbers in recent years, and
the company's new focus on electric technolo-
gy, digitalisation and connectivity.
Porsche views the conservation of natural
resources as an entrepreneurial obligation.
Whether in development or in production, the
objective is to impact the environment as
little as possible, to use energy efficiently and
to increase the share of renewable energies.
All the steps taken to this end are scrutinised
The basis for successful HR work is Porsche's
continual positioning as an attractive employer.
Indeed, Porsche's stakeholders attributed a
great deal of importance to this aspect in
the 2017 materiality analysis. Porsche scores
particularly highly for its excellent general
conditions, the strong corporate culture and
co-determination, and the extensive options
for reconciling a career and family life. Firmly
anchored in Porsche's HR strategy, employer
attractiveness is one of four central priorities
enshrined in the overarching Porsche Strategy
2025. Other benchmarks include the codes of
conduct and the "Porsche Business Rules".
Under the "Employees & Society" action area,
Porsche covers, among other issues, the im-
portant topics identified in the 2017 materia-
lity analysis, namely "attractive employer,"
"staff development," "corporate co-determina-
tion," and "occupational health and safety."
In all four areas, Porsche has clearly defined
processes and remits in place, as well as estab-
lished avenues of evaluation and feedback.
The "Environment and Energy" action area
constantly reviews the themes identified
in the 2017 materiality analysis: "energy
and emissions during production", "environ-
mentally compatible logistics" and "resource
consumption during production". Porsche
has put in place clearly defined processes and
responsibilities for all its divisions. Options
for feedback and evaluating processes have
also been firmly enshrined in the organisa-
tional structure.
Energy, emissions and resource consumption
during production
Global climate change, scarcity of resources
and advancing urbanisation all pose enor-
mous challenges to the economy and society.
In Porsche's 2017 materiality analysis, the
Porsche stakeholders who are impacted
directly or indirectly by the company's activi-
ties assign a great deal of importance to
"energy and emissions during production" and
"resource consumption during production".
Environmentally conscious and energy-efficient
activity at all sites and across all levels is
an essential element of Porsche's day-to-day
business. A Group-wide environment and
energy management policy continually checks
all work processes along the entire value chain
with regard to their ecological impact and
any irregularities. Internal sets of rules and
strategic guiding principles provide the rele-
vant frame of reference. A dedicated Group
guideline defines standardised procedures
and responsibilities within the Porsche Group.
This supports the Group companies in the
systematic investigation, observance and
checking of the regulatory environmental and
energy requirements.
The energy and environment management
policy covers emissions (air/noise) and
soil protection, dealing with contaminated
sites, hazardous materials and waste, as
well as emergency preparedness, water and
nature conservation and energy efficiency.
Responsibility for and the systematic imple-
mentation of the necessary steps lies with the
Member of the Executive Board for Production
and Logistics, supported by the Environment
and Energy Management department. The
fundamental aim is that every Porsche em-
ployee should be informed about the effects
of his or her work on the environment. Every
employee is called upon to observe the Group
and company guidelines in order to minimise,
or ideally avoid, any negative impact on
the environment.
The strategy field "sustainability in production"
in the Porsche Strategy 2025 defines short-
term, medium-term and long-term measures.
The "Environment and energy efficiency
strategy" and the company's own "Environ-
mental policy" are additional strategic guiding
principles. In this way the company is imple-
menting a requirement of the international
standards for environment and energy man-
agement, ISO 14001 and ISO 50001, around
which Porsche's internal specifications and
processes are based. The sports-car maker
also complies with the EMAS (Eco-Manage-
ment and Audit Scheme) standards, a voluntary
community environmental management
and auditing instrument developed by the
European Union. The Porsche site at Stuttgart-
Zuffenhausen has been validated according
to EMAS for more than 20 years and was also
the first automotive industry plant in the world
to fulfil the ISO 50001 standard. Since then,
Porsche Leipzig GmbH, the Research and
Development Centre in Weissach including its
external locations, the central parts warehouse
in Sachsenheim and Porsche Werkzeugbau
GmbH have all been certified as compliant
with this standard and with the ISO 14001
environmental management system.
The SDGs are primarily aimed at states and
governments, yet Porsche too wants to
counter the depletion of natural resources and
climate change and have a positive impact
on social development. The company is focus-
ing on those issues that its own business
model and related value creation processes
can materially influence.
as part of its annual system and process audits
(compliance audits). These audits are based
on high standards and involve the hiring of
external environment and energy auditors. The
site results method records the impact that
a site has on the environment: data and key
figures are used to rate essential environmental
aspects on a scale of high, medium and low
relevance. On this basis, Porsche can deter-
mine all measures needed to ensure that
potential negative impacts on the environment
are reduced if not eliminated altogether. The
Environment and Energy steering committee
carries out regular progress checks on the
pre-defined goals and initiates appropriate
steps. The steering committee works
cross-departmentally.
Performance Sustainability strategy and sustainability management
A Group-wide environ-
ment and energy
management policy
continually checks all
work processes along
the entire value chain
with regard to their
ecological impact and
any irregularities.
Internal sets of rules
and strategic guiding
principles provide
the relevant frame
of reference.
Porsche strives to achieve a balanced environ-
mental performance. Using water as efficiently
as possible, through circulation systems and
multiple reuse, and the careful handling of
contaminated production waste water are im-
portant aspects in this regard. Avoiding waste,
harnessing low-waste technologies and de-
ploying sustainable disposal solutions are key
elements of Porsche's waste management con-
cept. The company's "environmental protec-
tion" resource regulation serves as an internal
guideline and is also binding on suppliers.
Generally, environment and energy manage-
ment staff are always at the disposal of com-
pany stakeholders - internal and external - to
answer questions or listen to suggestions
on the topic of "environment and energy". The
goal is to foster open and transparent stake-
holder dialogue. One example of this approach
is the central complaints management system
within the environment and construction
management structure. Porsche's neighbours
may contact central contact persons with any
complaints or suggested improvements. All
issues raised are dealt with individually. This
system enables Porsche to react as quickly as
possible and to incorporate suggestions into
its long-term planning for the improvement of
its sites.
In accordance with the Global Reporting Ini-
tiative (GRI) standards, Porsche covers the
topic of "energy, emissions and resource con-
sumption during production" in the form
of the following disclosures: GRI 302: Energy,
GRI 303: Water, GRI 305: Emissions, GRI 306:
Effluents and Waste.
57
EMPLOYEES & SOCIETY
Sustainability principle
At Porsche, people are at the centre of the
company. It assumes responsibility for its
employees and invests in their future.
Continuous professional development and
qualification are hallmarks of the Porsche
culture. At the same time, key importance is
attached to equal opportunities, diversity
and co-determination as well as the ongoing
improvement of our employees' worklife
balance along with fair and performance-based
remuneration. As part of our local and inter-
national social commitment in the areas of
social matters, education and science, culture
and sport, Porsche initiates its own projects
and supports external partners in conducting
their own important social activities.
Attractive employer
Sustainability principle
PRODUCT RESPONSIBILITY
53
Resource consumption
during production
p. 57
Attractive
employer
p. 58
■New mobility concepts
p. 56
Responsibility in the supply chain pp. 51-52
Digital transformation
p. 50
Compliance
pp. 52-53
Conservation and biodiversity
p. 57
Social
engagement
Low impact
pp. 76-87
Contribution to regional
development & infrastructure
p. 50
Sustainability communication &
stakeholder dialogue
pp. 44-45
Business relevance for Porsche
Equality of opportunity and equity
p. 73
■Corporate co-determination
p. 60
48
Performance - Sustainability strategy and sustainability management
p. 57
49
Environmentally
compatible logistics
p. 50
More than two thirds of those surveyed re-
ported being "very satisfied" or "satisfied" with
Porsche's sustainability efforts, an improve-
ment of twelve percentage points compared
with the previous survey. This is a clear in-
dication that Porsche is on the right track but
has yet to reach the home straight. The sur-
vey respondents did not see any conflict,
generally speaking, between sustainability and
the manufacture of premium sports cars,
with 89 per cent not believing there to be any
general contradiction. More than half of
participants (58%) stated that their impression
of Porsche had been "hardly" or "not at all"
affected by the diesel affair. Just under a third
(29%) felt that their views had changed,
however. All stakeholder groups expect open,
honest and transparent communication on
this matter as well as a clear response to the
challenge of low-emission sustainable mobility.
Porsche consistently aligns its product range
with its customers' wishes and with state-of-
the-art technology. On this basis, it is stepping
up its activities in relation to hybrid technol-
ogy and electric vehicles, and no longer offers
any diesel models. The company is embracing
its responsibility for rebuilding any loss of
trust and credibility by means of solid actions.
Overall, the 2017 survey respondents listed
"vehicle safety", "fuel consumption and vehicle
emissions" and "long-term customer relation-
ships" as their priorities.
The members of the Sustainability Council
also had the chance to provide detailed
feedback on sustainability at Porsche and on
the opportunities and risks during individual
expert interviews. They presented specific
recommendations for action to further shape
Porsche's engagement. Key areas of discussion
included alternative drives, a reduction in
corporate CO2 emissions, and the expansion
of the charging infrastructure. The members
of the Sustainability Council discussed the
impetus around these issues at two joint
meetings with the Porsche Executive Board
during the reporting year, using it as the basis
for appropriate measures. The working rela-
tionship with the Council is to be further
strengthened. The first significant step will
be a joint dialogue format with representatives
of external stakeholders in 2019. The next
Porsche stakeholder survey is scheduled for
autumn 2019 and will have a greater inter-
national focus.
Materiality analysis
(GRI 102-44, 102-46, 102-47, 103-1)
A workshop for members of the Sustainability
Expert Group and representatives of the
relevant departments at Porsche was staged
in autumn 2017, providing an opportunity
to evaluate defined topics in terms of their
impact on the environment, employees and
society. Porsche pooled the results of this
process in the form of a materiality matrix for
2017. This illustrates the link between the
issues that are most important to stake-
holders and those that are most relevant to the
company's operations. The matrix helped to
determine the main focuses of this report and
was also used to review the ongoing develop-
ment of the company's sustainability strategy.
Porsche pooled the
results of this process
in the form of a materi-
ality matrix. This
illustrates the link
between the issues that
are most important to
stakeholders and those
that are most relevant
to the company's
operations.
Materiality matrix
(GRI 102-44, 102-46, 102-47, 103-1)
Stakeholder relevance
High impact
Medium impact
Vehicle safety ■
p. 54
Fuel consumption and vehicle emissions ■
pp. 54-55
■Long-term customer relations
Materials and sustainable materials
pp. 55-56
pp. 50-51
Energy and emissions during production ■
p. 57
Long-term
economic stability
Staff development
pp. 58-59
Occupational health and safety
pp. 60-61
MANAGEMENT APPROACHES
OUR FIELDS OF ACTION
BUSINESS & CUSTOMERS
Sustainability principle
Regular risk analysis is carried out to define
areas that require action and preventive meas-
ures. The company's business model, relevant
environmental conditions and the relationships
with business partners are all taken into
account. Key preventive measures at Porsche
include the adoption and communication of
binding rules, while managers and employee
have access to confidential advice and risk-
based training and information on relevant
compliance issues. Ultimately, the code of
conduct sets out the most important rules to
be applied at Porsche in accordance with the
company's business model. This code docu-
ments the expectations of managers and staff
in terms of the responsibility they must
assume for compliance as a member of society,
as a business partner and at the workplace.
The rules are also set out in guidelines, cover-
ing such areas as how to avoid corruption or
violations of antitrust law, how to handle con-
flicts of interest or the receipt of gifts, and how
to prevent money laundering. To ensure and
promote lawful behaviour over the long term,
all managers and employees are given regular
information and training on compliance and
the related risks.
Porsche's central compliance help desk pro-
vides information and advice on compliance
issues internally, providing expert answers
to all questions from managers and employees
alike. The help desk can also be contacted
confidentially to report (potentially) unlawful
actions, such as criminal acts or serious
irregularities. Outside the company, Porsche
managers, employees, customers and busi-
ness partners, as well as public officials and
other external individuals, can report legal
violations anonymously via the ombudsman
system. All of the information received is
carefully examined, and any violations found
are responded to appropriately in accordance
with the relevant provisions of the employ-
ment and co-determination laws. This includes
introducing suitable countermeasures and
sanctioning cases of individual misconduct.
The Executive Board of Porsche AG receives
regular reports on actions taken by the
compliance organisation and on preventive
and response measures implemented in
the Porsche Group.
Compliance training
The compliance officers for each area, together
with the HR department, are responsible
for compliance training. Most of the training
currently being delivered takes the form of
classroom-based sessions. In addition, web-
based training sessions devoted to "Technical
Compliance" and "Data Protection" were also
available. The range of e-learning options
is to be gradually extended to include more
compliance issues in future.
The compliance managers deliver the training
on the basis of a subject-specific plan, which
uses risk analyses to identify target groups
and key areas of content, and also defines
Porsche always con-
ducts integrity checks
before entering into
business relations with
new suppliers.
Once the cooperation ar-
rangement is in place,
monitoring and develop-
ment are carried out on a
continuous basis, sup-
ported by question-
naires, risk analyses of
the supplier countries,
and e-learning modules
and training sessions.
organisational aspects such as the number
and frequency of events and the capacities
needed. A regular programme of set training
events is in place for (new) managers and
employees, as well as for junior managers
and trainees. In addition, training courses on
selected topics and with specific target
groups are held.
For example: since the relaunch of Porsche's
programme for junior managers (PE pro-
gramme) in 2018, compliance training has
been available in various formats and covering
a range of issues through classroom-based
and online modules. Participants can also gain
an insight into the company's compliance
culture, management and rules, and its code of
conduct, via an online offering. Using Skype for
Business, participants can take a live multiple
choice test and ask questions at the end of
the session. Compliance issues including anti-
corruption, anti-money laundering measures
and antitrust law are presented by compliance
officers during the classroom-based sessions.
As well as presentations and case studies, some
sessions involve group work where case studies
are tackled with the help of a board game.
New employees are familiarised with the com-
pany's compliance culture during the Porsche
Warm-up event, an introductory training
session generally held monthly. The event is
based around the World Café, in which newly
hired staff have the chance to look inten-
sively at the code of conduct and basic rules
on avoiding corruption, tackling specific cases
before presenting their solutions to the full
group. The compliance image film rounds off
the event which also covers the most im-
portant rules and expectations in relation to
the issue of compliance.
All compliance trainings at Porsche are binding.
The amount of training undertaken by com-
pliance officers is monitored over the course of
the year, with the final status being reported
to the Compliance Council and to the Executive
Board and Supervisory Board. Since the
beginning of 2018, employees' attendance at
compliance seminars has been recorded in
their continuing professional development file.
Information for employees
Information about the Compliance depart-
ment's training programme is available to
Porsche employees on the intranet. In addition
to relevant Group and company guidelines,
this information includes contact persons and
ways to report concerns either internally or
externally, along with a range of materials such
as compliance videos, flyers, note cards and
check lists.
Porsche's code of conduct
The Volkswagen Group's code of conduct has
also applied to Porsche since the end of 2017.
These guidelines set out all aspects of
employees' responsibility for compliance:
- as members of society: human rights; equal
opportunity and equal treatment; product
conformity and product safety; environmen-
tal protection; donations, sponsorships and
charity; communications and marketing;
political lobbying.
- as business partners: conflicts of interest;
gifts, hospitality and invitations; prohibition
of corruption; dealings with public officials
and holders of political office; prohibition of
money laundering and terrorism financing;
accounting and financial reporting; taxes
and customs; fair and free competition;
procurement; export control; prohibition of
insider trading
- in the workplace: occupational safety and
healthcare; data protection; security and
protection of information, know-how and
intellectual property; IT security; handling
company assets. Illustrative examples
that employees might face on the job are
provided for each topic.
There is also a self-administered test designed
to help employees make decisions in case of
doubt. Porsche's code of conduct is published
on the internet and intranet. All staff are
also sent the code of conduct by e-mail and
informed about it during training and infor-
mation events, and all new employees are pro-
vided with a hard copy in the form of a brochure
at the welcome event on their first day.
In accordance with the Global Reporting Initi-
ative (GRI) standards, Porsche covers the
topic of "compliance" through the following
disclosures: GRI 205: Anti-corruption,
GRI 206: Anti-competitive Behavior, GRI 307:
Environmental Compliance, GRI 419: Socio-
economic Compliance.
52
Performance Sustainability strategy and sustainability management
The company has put in place a compliance
structure based around its business model
to ensure that it acts lawfully, with legally
secure processes and preventive and reactive
measures. The Porsche compliance manage-
ment system encompasses seven areas
of compliance. In order to avoid any infringe-
ments of the law and to help its employees act
in accordance with legal and statutory provi-
sions, Porsche has had a compliance system
in place for many years now. This system
includes a chief compliance officer, and com-
pliance officers at Porsche AG and at the Group
member companies covering every area of
the business. The compliance programme
encompasses a range of different preventive
and reactive measures.
Acting responsibly means acting in strict com-
pliance with laws and regulations. Porsche's
stakeholders share this view, duly assigning
a high level of importance to the topic
"Compliance" in the 2017 materiality analysis.
Compliance
In accordance with the Global Reporting
Initiative (GRI) standards, Porsche covers the
topic of "responsibility in the supply chain"
in the following content-specific disclosures:
GRI 204: Procurement Practices, GRI 308/414:
Supplier Environmental/Social Assessment,
GRI 408/409: Child Labor/Forced or Compul-
sory Labor and GRI 412: Human
Rights Assessment.
Satisfied customers, economic stability,
value-generating growth and social accept-
ance are the focus of all of our business
activities at Porsche. Corporate responsibility
begins with our self-image of actively helping
to protect the natural conditions for life on
earth and of benefiting our business environ-
ment. Economic efficiency, environmental
consciousness and social responsibility are
not mutually exclusive. On the contrary - by
combining them we create more value for our
stakeholders. As a company, Porsche is an
integral part of society. Ethical behaviour is
therefore essential. Porsche embraces fair
competition and acts not only lawfully but also
legitimately. The company systematically
combats corruption, respects and complies
with international standards of human rights,
and categorically rejects all forms of forced
and child labour.
The "Business & Customers" action area covers
the following topics identified in the 2017
materiality analysis: "long-term economic
stability", "long-term customer relations",
"compliance", "responsibility in the supply
chain" and "digital transformation". All of these
topics feature clearly defined processes and
areas of responsibility, as well as established
evaluation procedures.
Economic stability and
digital transformation
The automotive industry is facing radical
change across the world. Electrification, digi-
talisation and connectivity are the hallmarks
of a new era in individual mobility. This view
is shared by Porsche's stakeholders who
assigned correspondingly high degrees of rele-
vance to the topics of "economic stability" and
"digital transformation" in the 2017 materiality
analysis. From the company's perspective,
these two topics must be handled successfully
in order to secure Porsche's long-term eco-
nomic success.
The company enjoys excellent profitability and
has set itself the strategic target of a minimum
operating return on sales of 15 per cent. At
the same time, Porsche is making major invest-
ments to ensure it retains its innovative capa-
city and can embrace the digital revolution.
Digitalisation is impacting on all areas of the
company - from internal processes to our
interaction with customers and the develop-
50
ment of new products and services. An inno-
vation management system that extends
across all of the company supports the gen-
eration of new impetus, driving the testing of
technologies and trends, and encouraging
Porsche's employees to take the initiative to
shape mobility in sustainable ways.
In accordance with the Global Reporting
Initiative (GRI) standards, Porsche covers the
topic of "long-term economic stability"
through its disclosures pursuant to GRI 201:
Economic Performance. This information is
measured and reported on the basis of the
Porsche AG Group's financial analysis, financial
data and calculations of added value.
Long-term customer relations
Porsche sets high standards with regard to
maintaining long-term customer relations,
and consistently seeks to improve and develop
its range of exclusive sports cars and mobility
services in the interests of its customers.
"Inspiring customers with a unique product
and brand experience" is one of the four main
aims of the Porsche Strategy 2025. The
2017 materiality analysis also underscores the
importance attached to "long-term customer
relations". Consequently, the Sales and Market-
ing division uses a variety of measures to
strengthen customer satisfaction and loyalty
over the long term and to further optimise
the customer journey at Porsche.
We strengthen relations with all of our stake-
holders through personal interaction and open
dialogue. New apps, expanded social media
channels, the integration of chat functions and
the overarching, personalised "My Porsche"
customer portal are all simplifying and speed-
ing up digital communications between the
company and its customers. Yet these new
approaches are by no means replacing personal
contact, which will remain just as essential
in future as Porsche fosters stable, long-term
relationships based on trust. This is why
Porsche supports individual support for its
customers across the world throughout their
customer journey, updating the technical
systems deployed for this purpose, staging
exclusive customer events and ensuring
that its sales staff are given the necessary
customer-focused training.
(GRI 102-40, 102-42, 102-43, 102-44,
102-46, 102-47, 102-48, 103-1)
Porsche regards constructive criticism as an
opportunity to keep on improving its products,
services and processes. The company's global
market research team sends out more than
250,000 questionnaires every year in order to
gain a better understanding of its customers
and to identify new customer expectations in
good time so that these can be fully interpreted.
Particularly with regard to new vehicle tech-
nology and mobility trends, the findings from
the company's surveys are fed into the process
of developing new products and services at
an early stage. Porsche takes customer feed-
back very seriously. In a monthly product
quality and customer satisfaction forum, the
Executive Board of Porsche AG evaluates the
results and consequences of the feedback
that it receives with developers, as well as with
representatives from the Quality Assurance,
Aftersales and Customer Relations depart-
ments. The results of these efforts to look after
and communicate with clients in cooperation
with Porsche's trade partners are clear to see.
For the fourteenth year in succession, Porsche
occupied one of the top rankings in the Auto-
motive Performance, Execution and Layout
Study (APEAL) quality study conducted by
the US market research institute J.D. Power
in 2018.
In accordance with the Global Reporting
Initiative (GRI) standards, Porsche covers the
topic of "long-term customer relations"
through its disclosures pursuant to GRI 418:
Customer Privacy. Porsche takes individual
data privacy very seriously and respects every
data subject's right to determine what is done
with their data. Data protection is integrated -
independently and without instruction - into
all relevant company processes. Porsche's data
protection system and the relevant business
processes are consistently designed to ensure
that the statutory requirements are upheld
at all times. Over and above the statutory re-
quirements, Porsche has issued its own guide-
lines committing the company to further
data protection principles, including data
economy, purpose-based collection and confi-
dentiality. A full-company programme was
launched in order to guarantee implementation
throughout Porsche of the new requirements
imposed by the EU's General Data Protection
Regulation (GDPR). This programme covers
documentation and information obligations,
the rights of data subjects, and data protection
management processes. Due to internal con-
fidentiality guidelines, any reports received on
specific data protection violations are not
published, however.
Responsibility in the supply chain
Economic success, the extension of the prod-
uct portfolio, and the use of new technologies
are focusing ever more attention on companies'
supply chain. Two examples illustrating this
development are higher delivery figures driving
growth in supply parts, while new products
frequently also need innovative components
that must be procured responsibly. Porsche
stakeholders also assigned a high level of
relevance to the topic of "responsibility in the
supply chain" in the 2017 materiality analysis.
Together with its suppliers and sub-suppliers,
Porsche makes every effort to make its
supply chain as sustainable and value-adding
as possible.
When Porsche was incorporated into the
Volkswagen Group, its procurement division
was also largely integrated into the Group's
organisational structure. Shared purchasing
structures, processes and systems were
specified in a cooperation agreement back in
2011. This means that Porsche's procurement
decisions are largely coordinated and agreed
upon with the Volkswagen Group. Cooperation
between Porsche AG and the Group is also
consistently being driven forward and the rele-
vant structures expanded and strengthened.
A supply chain based on responsibility is built
around trust-based cooperation, shared
values and strict compliance with the sustain-
ability requirements defined in the Volkswagen
Group. The concept of "sustainability in
supplier relations" and the corresponding code
of conduct compel all parties to observe
and comply with the high environmental, social
and human rights standards in the Internation-
al Chamber of Commerce's charter and the
OECD's guidelines for long-term, sustainable
development. The relevant key labour stand-
ards from the International Labour Organiza-
tion (ILO) serve as the foundation for the
sustainability requirements that Porsche once
again helped to revise and update during
the year under review. All suppliers are also
expected to follow the OECD Due Diligence
Guidance for Responsible Supply Chains of
Minerals from Conflict-Affected and High-Risk
Areas. Porsche is active in this area in the
context of the Group's responsible minerals
initiative (RMI) activities. These sustainability
requirements are enshrined in supply con-
tracts, the violation of which can result in
reviews, formal statements and potentially also
the termination of the business relationship.
Sustainability audits in the 2018 reporting
year yielded two cases in which specific sus-
tainability requirements were not met.
Appropriate measures were agreed upon with
two suppliers, and the introduction of these
measures was monitored. As at the end of the
reporting year, one case was still open and
being reviewed.
Porsche always conducts integrity checks
before entering into business relations with new
suppliers. Once the cooperation arrangement
is in place, monitoring and development are
carried out on a continuous basis, supported
by questionnaires, risk analyses of the supplier
Performance Sustainability strategy and sustainability management
51
countries, and e-learning modules and training
sessions. Porsche has also been carrying
out its own sustainability audits of selected
suppliers since 2016. Audits are followed
up by detailed reports and plans of action. In
this way, and combined with a broad range of
other activities including regular employee
seminars on sustainability requirements in the
supply chain and supplier workshops, the com-
pany is putting one of the Porsche Strategy
2025 measures into practice. Sustainability in
the supply chain is also a separate area of ac-
tion within the company's purchasing strategy.
A new guideline in the Volkswagen Group on
sustainability in supplier management has also
governed all internal processes and areas of
responsibility since 2017. Porsche incorporated
the requirements defined in this guideline into
its own brand-specific guidelines in 2018.
"Inspiring customers
with a unique product
and brand experience"
is one of the four main
aims of the Porsche
Strategy 2025. The
2017 materiality analy-
sis also underscores
the importance attached
to "long-term customer
relations".
79
A partnership of many years also exists with
another institution in Leipzig: in October 2018,
Porsche presented the Leipzig Opera Ball for
the sixth time. Among the highlights of this
social event is a raffle, the proceeds from
which are donated to a good cause. Porsche
donates the attractive main prize - this year, a
718 Boxster in GT Silver Metallic with a red
hood and leather interior in the same colour.
International university contacts are also care-
fully maintained and continually developed.
Examples include the internship programmes
with Tongji University in Shanghai (China) and
Massachusetts Institute of Technology in
Cambridge, near Boston (USA), as well as the
cooperation with the IT chair at Babes-Bolyai
University in Cluj (Romania).
FIGHT
FAIR.
As well as the strategic guidelines, structural
conditions were created in 2018 to raise
awareness of the topic. Similarly to the topic
of compliance, integrity is also implemented as
a function in the steering committee and
responsible committees. Regular reporting to
the Executive Board is also planned.
Internal communication measures have been
initiated in order to sensitise the workforce
to the topic of integrity. Integrity in working
life is also actively addressed in the annual
employee survey. Should there be any notable
findings in connection with the question of
acting with integrity in the company organisa-
tion, optimisation measures will be initiated,
with the involvement of HR and the responsi-
ble managers.
Integrity is also discussed within the existing
personnel development programmes. To
enable dialogue events on the values and
culture of the company to be established in
every corporate unit, Personnel Development
has created an additional format to qualify
employees appropriately. In addition, all disci-
plinary managers are reminded during an
in-person event to introduce their employees
to the topic of integrity, to be a role model for
integrity, and to create an environment in
which every employee can speak their mind
openly and honestly.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
67
66
Training
The pillars of Porsche's personnel policy
include needs-based training that focuses on
future requirements, ongoing skills acquisition,
and internal development. The Porsche voca-
tional training has been the basis of this for
76 years. Learning contents and training places
are adapted predictively to technological
progress and social development. At the
Zuffenhausen site, the company currently
offers 200 training places in ten technical and
commercial training professions, as well as
eight degree programmes in cooperation with
the Baden-Württemberg Cooperative State
University (DHBW).
At its headquarters in Zuffenhausen, Porsche
is preparing for the manufacture of the Taycan
and has again increased the number of tech-
nical training places in the year under review,
from 106 to 156. Training is offered in the
following fields: auto mechanics with a focus
on passenger car technology, auto mechanics
with a focus on system and high-voltage
technology, warehouse logistics specialists,
body and vehicle construction mechanics,
automotive painters, vehicle interior designers,
industrial mechanics for automobile con-
struction, and electronics engineers for
operating technology.
There were also 34 dual study places provided
in 2018. The degree courses IT, IT Automotive
and Digital Business Management were
established. The degree course in electrical
engineering is now offered with two speciali-
sations: vehicle electronics and mechatronic
systems, as well as vehicle electronics and
embedded IT. In the course of electromobility
and the progressive digitalisation of all areas
TRAINEES, ZUFFENHAUSEN
68
of automobile construction, around 50 per cent
of places are now filled in the IT and electrical
engineering courses.
In 2018, as in the previous year, ten industrial
salespersons started their training. In the
commercial field, the trainees are prepared for
the new working world from the very first day.
Paper-based processes are virtually entirely
replaced by digital applications.
Part of the future-orientated training com-
prises the promise to take on all graduates of
the vocational training and the dual study
programme as permanent employees. Thus, in
the financial year under review, 159 trainees
and DHBW students started a permanent job
after successfully completing their studies.
The internationalisation of the vocational
training is an important milestone in order to
qualify young, highly motivated talents
further and to prepare them for the work-
place of the future. The foreign postings
encourage intercultural exchange, aid person-
ality development and increase the flexibility
and mobility of the trainees. In the year under
review, 30 technical trainees, ten commercial
trainees and 33 dual students gathered
professional experience abroad. The postings
lasted from two weeks to four months. The
focus in 2018 was on expanding the foreign
postings in the context of the "Synergy and
Integration Project" by the brand group Luxus
und Sport, consisting of Porsche, Bentley and
Bugatti. The rotation programme between
these brands was developed further: at Porsche
and Bentley, 20 exchange programmes took
place in the context of technical vocational
training. In addition, 16 dual study programme
students spent several weeks at Bentley
and Bugatti.
88
The percentage of female trainees underwent
a positive development - reaching 29 per cent
in the year under review. In the dual study
programmes, the proportion of female stu-
dents was 43 per cent. It remains a challenge
to find young women for technical or engineer-
ing and IT degree courses. Various activities
have been conducted in order to obtain more
applications from suitable candidates in
the next few years. For example, Girls' Day
has been taking place within the vocation
training programme for many years. Its aim is
to get young women interested in technical
professions at an early stage. Girls' Day was
realigned this year under the motto "#Digital-
&TecChallenge". 90 girls took the opportunity
to sample the training of the future in Zuffen-
hausen. A further 40 schoolgirls received
exciting insights into the working world of
Porsche at the Leipzig and Bietigheim-
Bissingen sites. In addition, the first Digital
Day for Girls took place within the vocational
training to encourage young women to take
a dual study programme in one of the IT degree
courses on offer - and it was successful.
RESPONSIBILITY.
Performance - Employees, Society, Sport, Communication
LIVE
PASSIONATELY.
THINK OUTSIDE
THE BOX.
LOOK INTO THE
FUTURE
WITH COURAGE
PORSCHE CODE
Porsche mood barometer
HERZBLUT
KNOW WHERE YOU
COME FROM.
STAY
HUNGRY.
PIONIERGEIST MENSCH SPORTLICHKEIT
RESPECT
EACH OTHER.
ONE FAMILY
In 2018, all employees of Porsche AG and its
German subsidiaries were asked to give an
assessment of their current work situation
using a mood barometer. More than 21,000
people voluntarily participated in the online
survey. The contents concerned topics such
as cooperation, quality of work and integrity.
After the questionnaires were evaluated, the
results in the respective corporate unit were
discussed in detail, with the involvement of the
Works Council. Managers and employees iden-
tify potential for improvement and jointly
define specific measures in order to optimise
processes or working conditions, for example.
Integrity at Porsche
At Porsche, integrity comes first - because
acting responsibly, resolutely and from
personal conviction in accordance with ethical
principles is the prerequisite for honest and
respectful cooperation, which constitutes
the basis of the Porsche culture.
A high value is placed on integrity at Porsche,
as a fixed component of our strategic guide-
lines. The bottom-up development of a culture
guideline was initiated as early as 2016, and
included integrity as a central value. In the
year under review, the topic was also anchored
in the management guideline, which was
likewise developed by the employees and
managers. Acting with integrity is also indis-
pensable in retail, which is why it was included.
in the Porsche service standards as the
highest value.
TAKE
The Porsche Code replaces the previous man-
agement guidelines. It was enhanced and
developed in 2018. The objective is to link the
Porsche Code to all the HR processes. Key to
this are what are known as Management Labs.
In the labs, managers prepare themselves for
future challenges. By means of critical reflec-
tion and external inspiration, they also inter-
nalise the Porsche management culture in the
long term. All disciplinary managers are to
take part in a Management Lab in 2018 and
2019 as part of this initiative.
All technical trainees learn the current manu-
facturing and vehicle technologies in order to
prepare them optimally for their profession.
For this reason, their training deals with topics
such as e-mobility, hybrid technology, driver
assist systems, digital learning media and
Industry 4.0. A good example of how these
innovations are integrated into the training is
the Learning Factory 4.0. Developed by train-
ers and set up together with trainees, the
Learning Factory offers system-based manual
TRAINEES, LEIPZIG
In the Porsche development programme,
employees are qualified professionally and
personally for a possible assumption of mana-
gerial tasks. The contents of the programme
are strictly orientated towards Strategy 2025:
digitalisation, innovative strength, internation-
alisation and lifelong learning are central ele-
ments. The Porsche development programme
was launched in January 2018, with around
250 employees from Porsche AG and 17
participants from the subsidiaries. A second
wave began in December 2018.
Programmes at management level
Porsche is preparing managers for the
challenges of the future with customised
qualification offers. Among other things,
two high-quality modular programmes have
been developed with internationally leading
business schools. In the year under review,
50 participants completed the newly created
"Porsche International Management
Programme" under the banner of: "A distint-
ive agility trip for Porsche leaders". The
programme is tailored to the special require-
ments of second-tier managers. They are
to shape the digital transformation process in
the company even more actively. The focal
points are therefore the systematic develop-
ment of leadership competencies, the
strengthening of the required mindset and the
expansion o the methodological repertoire.
The "Porsche Advanced Management
Programme" focuses on the development of
leadership competencies. These are necessary
in order to be able to act successfully in a
global and volatile environment and to actively
control Porsche's strategic direction. The sec-
ond wave was successfully completed in June
2018 with 22 participants from Porsche AG,
the worldwide Group subsidiaries and Bentley.
Among other things, two
high-quality modular
programmes have been
developed with interna-
tionally leading business
schools. In the year
under review, 50 partici-
pants completed the
newly created "Porsche
International Manage-
ment Programme"
under the banner of:
"A distinctive agility trip
for Porsche leaders".
Strategic competency management
With Strategy 2025, Porsche is preparing for
the future. The digital transformation with
its new technologies and processes, as well
as the aspiration to build environmentally
sustainable vehicles, lead in some cases to
entirely new products. This means that the
continuous and structured establishment and
development of success-critical competencies
is a mandatory aim of personnel development
for all employees.
Within the context of strategic competency
management, a systematic procedure was
developed for this: today's core tasks and
competencies are recorded using Fit-Gap
analysis and compared with future tasks and
the abilities which will be necessary for them.
Any skill gaps identified in this way can be
addressed at an early stage through targeted
re-training and further training, proactive
recruitment and new priorities in ongoing train-
ing. The pilot project, launched in 2017, was
successfully rolled out in one department with
300 participants and 54 workshops in 2018.
Knowledge campaign "Fit for digit@l"
significantly expanded
The digital transformation places new and sig-
nificantly altered requirements on the work-
force. It is therefore important to sensitise and
motivate all employees for the transformation.
The knowledge campaign "Fit for Digit@l",
successfully launched the previous year, was
further developed in 2018 in the Porsche
Group. The aim is to convey knowledge relat-
ing to digitalisation to all Porsche employees.
As well as digital learning tools, diverse events
offer the possibility of actively helping to shape
the digital transformation.
"Fit for Digit@l" concentrates on three areas.
Firstly, on the core of digitalisation and its
effects on the automotive industry and its
employees. Secondly, on the drivers of the
digital transformation - for example, new
technologies, business models and mobility
concepts. And thirdly, on the fields of action
of digital transformation at Porsche. These
areas are derived from Strategy 2025 and
encompass products and services, customers
and retail, company and processes, and
people and culture.
Porsche learning platform, media laboratory
and learning community
The Porsche learning platform is the central
basis for all further training topics at Porsche.
Employees can find the entire range of quali-
fications offered and can learn autonomously
here. Together with personnel development
and more than 150 trained representatives
from different departments, the offer on the
platform is regularly expanded. An essential
precondition for the creation of digital learning
contents is the introduction of a media labora-
tory with which the departments can develop
digital learning formats simply and autono-
mously. More than 24,000 active user profiles
confirm the success of the concept.
On the basis of the learning platform, the
"Lernen@Porsche-Community" was created in
the year under review. This steadily growing
group is managed by personnel development
and currently consists of more than 50 con-
tact persons who are responsible for specialist
qualification in prescribed areas. The aim of
the community is to exchange views across
the departments on the topics of qualifica-
tion, digital learning and blended learning. This
creates networks which use positive, sustain-
able synergy effects and develop joint training
formats - for example, by an intensive ex-
change of views on the didactic and methodo-
logical development of digital learning formats.
Fix für Digit
With Strategy 2025,
Porsche is preparing for
the future. The digital
transformation with its
new technologies and
processes, as well as the
aspiration to build
environmentally sus-
tainable vehicles, lead in
some cases to entirely
new products.
Porsche development programme
Pors
the graduates get to know the work processes
of various divisions, main departments and
departments.
In the year under review, Porsche expanded the
existing seminar range to include formats
which are specifically geared towards special-
ist shift workers. A total of six seminars were
devised, including "Fit for internal application"
and "Personal development". The positive
feedback from the participants has confirmed
the great interest and relevance of an offering
for skilled workers who work in shifts.
Ausbildungszentrum
training centre
workplaces, control technology and a robot
cell. A driverless carrier system and a light-
weight robot are also planned for the future.
In the Learning Factory, the trainees experience
how to handle digital manufacturing techno-
logies in training courses, while they assemble
a 911 model, for example, at a scale of 1:10.
They also gather initial experience of series
processes, communication channels, trouble-
shooting, quality aspects and the evaluation
of data, which they will meet again later when
manufacturing the Taycan.
Also in 2018, a digital printing robot was
installed and put into operation together with
Production. The trainees use it to learn the
programming and optimisation of the param-
eters in order to ensure flawlessly high-quality
printing. In the run-up to production of the
Taycan, pilot training courses on the operating
principle of 3D printing, 3D scanning and
the assembly of the e-drive for the Taycan
were also conducted.
Since many applicants have no prospect of
a training place according to the general
selection criteria, Porsche relies on an entry
qualification, which is known as the Year of
Support. Since 2012, 85 young adults have
completed a Year of Support on the basis of
the collective wage agreement. 91 per cent
of them were able to qualify for a subsequent
training at Porsche. Because of its great
success, the Year of Support was continued,
and the original number of participants was
raised from 15 to 20 in both 2017 and 2018.
Porsche has also successfully continued the
integration year for refugees. 15 young people
took part in the project, and almost all of
them were successfully integrated into the
training and job market in cooperation with
handicraft businesses.
The vocational training of severely disabled
candidates has been exemplary. Currently,
23 persons with a disability are completing
training or a dual study programme with
Porsche. If training in the company is not pos-
sible on the grounds of individual restrictions,
the cooperative training model applies: the
young people complete the theoretical part of
their training at a vocational training centre
which is appropriate to their individual support
needs. For the practical part of the training,
they are deployed to the extent of their possi-
bilities in the various departments of the
company. Internship placements for young
people with a disability are also enabled
individually in cooperation with various voca-
tional training centres.
In the 2017/2018 school year, Porsche
launched a new project in vocational training,
known as the after-school learning centre.
On two mornings of every week, the Porsche
training workshop was turned into a classroom
for technology classes for years five to ten.
The secondary school pupils were taught by
their own technology teacher according to the
curriculum and depending on the topic, the
trainers and training supervisors then gave the
pupils insights into the Porsche world. In total,
around 170 school pupils were welcomed in
this capacity here in the last school year. The
project is being continued on the same scale
in the current school year.
Performance - Employees, Society, Sport, Communication
At the Leipzig site,
Porsche was again very
heavily involved in the
vocational orientation
and promotion of MINT
professions in 2018. In
cooperation with the VDI
(Association of German
Engineers) Garage, the
At the Leipzig site, Porsche was again very
heavily involved in the vocational orientation
and promotion of MINT professions in 2018.
In cooperation with the VDI (Association
of German Engineers) GaraGe, the Porsche
school workshop in Leipzig Plagwitz offers
the chance to experience technology. The
intention is to inspire schoolchildren to train
in a technical profession. At the Leipzig site,
Porsche recruits around 30 per cent of each
training year from participants of the courses
in the VDI Garage. The range offered by the
Porsche pupils' workshop was expanded in
2018 to include the topics of electromobility
and Connected Car.
In the last two years, Porsche was the main
sponsor of the school competition on entre-
preneurship, "Jugend gründet". The aim of
the competition is for young people to gain a
feeling for entrepreneurial thought and action
in order to use this in future as entrepreneurs
and intrapreneurs. Since 2018, the national
final has taken place in the Porsche training
centre in Zuffenhausen. The Porsche special
"Digital Future" prize was also successfully
implemented. With this award, Porsche under-
lines the importance of digital transformation
for society. In the year under review, the prize
was awarded to three schoolgirls from Mühl-
dorf. They had applied with a business plan for
their business idea "sign language aid". The
concept aims to help deaf and dumb people to
communicate better with other people. The
solution they thought up was a headset with
an integrated camera which could recognise
and directly translate sign language.
69
Staff development
Within Strategy 2025, the majority of the
strategy areas are devoted to the challenges
and opportunities of digitalisation. The digital
transformation places new, or at least signifi-
cantly altered, requirements on all employees
and managers. The work of personnel and
management development therefore essen-
tially consisted of tasks concerning digital
transformation in the year under review. The
aim is to build and develop digital com-
petencies that are crucial to company success
in all employees and managers in a structured
and long-term way. The high-quality and
comprehensive range of training opportunities
and individual and target group-specific staff
development programmes are continuously
being expanded and optimised in consultation
with the Works Council.
Porsche Warm Up
Qualification and interdepartmental exchange
begin on the first day at Porsche: during
the Porsche Warm Up, new employees are
given comprehensive information about fun-
damental topics. During the two-day event,
they get to know the Porsche Strategy 2025
and the integrity and compliance principles,
among other things. They are also informed
about equal opportunities and the services
offered by the Works Council. In 2018, around
1,845 employees participated in the Porsche
Warm Up and 48 in the Porsche Warm Up
International.
Seminars for shift workers
International trainee programme
Following the successful completion of the
fourth wave of the trainee programme, a
further round with ten participants started in
October 2018. The international programme
lasts twelve months. In the project work,
The culture guideline defined in the previous
year, with its four dimensions "dedication",
"sportiness", "pioneering spirit" and "family",
continued to be actively pursued and com-
municated into the company in 2018. A
Porsche culture film was created in the spirit
of the new guideline: employees were actively
involved in this, too, and played the lead roles
in the film.
Porsche corporate culture
The significant increase in employee numbers
and the digital transformation are crucially
changing how we work together. The initiative
launched in 2017 to strengthen Porsche's
corporate culture is therefore being given prior-
ity. Chairman of the Executive Board Oliver
Blume and HR Board Member Andreas Haffner,
as well as the chairman of the Works Council,
Uwe Hück, have been involved in the project
from the beginning. They are sponsoring
various campaigns, thus emphasising the
importance of this topic for Porsche.
The objective is to link
the Porsche Code to
all the HR processes.
An organised and struc-
tured system for occu-
pational health and
safety ensures a uniform
approach and the imple-
mentation of legal
provisions. This system
helps to prevent acci-
dents at work and
occupational illnesses
as far as possible.
In this report, the topic of "occupational health
and safety" is covered in accordance with
the rules of the Global Reporting Initiative
by the indicator GRI 403: Occupational Health
and Safety. This indicator is measured and
reported on the basis of the following key
figures: number of accidents, work days lost
and cases of death, as well as injury rate. The
key figures are currently being gathered for
Porsche AG and Porsche Leipzig GmbH with
an expansion to include the Porsche AG Group
planned for the future.
60
Performance Sustainability strategy and sustainability management
61
Employees, Society, Sport, Communication
Employees
Society
Sport
Communication
EMPLOYEES
It is the people at Porsche that make the
company so successful - with their expertise,
their commitment and their passion. They
affirm the values and aims of the company
without reservation.
The number of employees at Porsche AG
exceeded the 30,000 mark for the first time in
the year under review. On the reporting date,
31 December 2018, the company counted
32,325 employees, nine per cent more than at
the end of the previous year. A significant driver
of jobs is the Taycan, which will come onto the
market at the end of 2019. For the production
and assembly of Porsche's future electric
sports car alone, 1,500 new employees are
being hired at the Zuffenhausen site.
The company's rapid growth presents Porsche
with big challenges, which can only be mas-
tered if everyone involved pulls together. This
means that constructive cooperation with the
Works Council, its committees and IG Metall
are another important success factor. Collect-
ive bargaining agreements and works agree-
ments form the stable foundation for Porsche's
long-term success, benefiting employees and
shareholders in equal measure.
Personnel strategy and
innovation management
Employees are at the centre of our personnel
strategy. This describes "what we do" in order
to remain an outstanding employer. The per-
sonnel strategy is supplemented by the culture
guideline, which explains "who we are".
In order to prepare its employees individually
for the workplace of the future, Porsche is
investing in future-orientated expertise and
talent management. Performance-boosting
working environments and innovative working
methods and tools create the ideal conditions
for modern teamwork in both factory and
office. In addition, efficient processes and net-
worked IT solutions form the basis for modern
personnel work in the digital workplace.
Occupational safety is a
top priority for Porsche
and its employees.
The established strategic process is sup-
ported by innovation management in the
HR and Social Policy department. Relevant
search fields are identified by means of scout-
ing, trend analyses and new technologies.
Innovation initiatives are piloted in an iterative
process and then incorporated into the
personnel strategy. New working methods and
environments, such as design thinking work-
shops or innovation areas, also enhance the
innovative strength in the entire company.
Thanks to the joint dedication, the injury rate
has been significantly reduced in recent
years. With a current rate of 5.8 accidents per
million working hours, Porsche AG and Porsche
Leipzig GmbH are at the same level as in
previous years.
The central processes are standardised and
regulated by the Group guideline on occupa-
tional safety. This guideline represents an
essential element of the company's compliance
management system and applies to all employ-
ees. The managers ensure that their employees
are familiar and comply with the provisions of
this guideline. Specialists in occupational safe-
ty, Works Council members and works doctors
are available to all employees in an advisory
capacity. All staff members are also represent-
ed through the legally defined representatives
in the occupational safety committees in
accordance with the Occupational Safety Act.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance - Employees, Society, Sport, Communication
78
In 2017, Porsche China started a cooperation
with ART021, a leading trade fair for contem-
porary Chinese art: together, they announced
the "Young Chinese Artist of the Year" (YAOY)
competition. Its objective is to find the most
innovative and pioneering young artists in
China. They are given financial support to con-
tinue along their artistic path. Wu Junyong was
one of the winners of the first YAOY. In May
2018, Porsche China and ART021 devoted a
special new media art exhibition to him in
Beijing. In November 2018, Porsche China and
the Cc Foundation opened an exhibition at
the "2018 ART021 Shanghai Contemporary Art
Fair" as part of the "Porsche 2019 Young
Chinese Artist of the Year" press conference.
All three YAOY prize-winners of 2017 - Wu
Junyong, together with Yao Qingmei and
Zhang Ding presented their latest work here.
Porsche China promotes talented artists
One of the main focuses of Porsche China's
cultural commitment is support for talented
young artists. The company launched a co-
operation with the Sichuan Fine Arts Institute
back in 2010. Within the CSR programme
"Empowering the Future", seven Porsche art
competitions have been organised so far, with
participation by more than 2,000 art students.
In October 2018, Porsche
presented the Leipzig
Opera Ball for the sixth
time. Among the highlights
of this social event is a
raffle, the proceeds from
which are donated to a
good cause.
MAIN PRIZE: 718 BOXSTER
13/10/18
ČESKO
MAHOL
Opernhall
LEIPZIG OPERA BALL
Corporate co-determination
One of the pillars of Porsche's corporate culture
is corporate co-determination. The relevance
of the topic was also highlighted by the 2017
materiality analysis. Porsche benefits from con-
tinuous dialogue as well as open, direct com-
munication across all levels of the organisation.
The employer and the Works Council have trad-
itionally worked together closely on all issues
affecting the staff and the company. Internal
media keep employees of Porsche AG up to
date on current issues. In addition, the Works
Council offers a comprehensive information
and discussion platform with its works meet-
ings, which take place at the individual Porsche
locations in Germany. In additional information
and specific departmental events, the mem-
bers of the Board of Management and the
Works Council report transparently on current
topics and developments. It is also established
practice at Porsche to inform all employees
and their elected representatives about impor-
tant operational changes, doing so compre-
hensively and in a timely manner. This is done
in compliance with national laws, applicable
collective bargaining agreements and works
agreements. Adherence to this corporate
practice is ensured in a number of other ways,
including through a Supervisory Board with
equal representation, the Works Council com-
mittees, and the works agreement database
on the intranet.
At the same time, there are numerous ways for
employees to bring their suggestions, problems
or complaints to the attention of committees
and decision-making bodies, be it openly or
discreetly through special channels. The mood
barometer involves an anonymous survey
of employees throughout the company about
topics relating to the working relationship
with colleagues and supervisors, the quality of
work and the provision of information. A de-
tailed evaluation of the results is followed by a
discussion involving the Works Council in all
areas of the company. Potential improvements
are identified and measures to optimise work
procedures and conditions are agreed on.
In this report, the topic of "corporate co-deter-
mination" is covered in accordance with
the rules of the Global Reporting Initiative by
the indicator GRI 402: Labor/Management
Relations and GRI 407: Freedom of Association
and Collective Bargaining.
Occupational health and safety
Porsche's most important resource is its moti-
vated and capable workforce. Porsche health
management has a key role to play in ensuring
that the company can continue to develop,
produce and sell exclusive vehicles in the fu-
ture too. Alongside the well-established tools
to secure productivity at the development
and production sites, new occupational health
promotion measures are now also available to
certain areas. Porsche employees may also
arrange to have a thorough medical check-up
and obtain medical advice on any health
issues. This voluntary health check is carried
out by qualified doctors during working hours.
The Porsche health management system also
includes courses on nutrition, mental health
strategies and effective self-management.
Employees can also access individual physio-
therapy advice at the workplace.
Occupational safety is a top priority for Porsche
and its employees. An organised and struc-
tured system for occupational health and
safety ensures a uniform approach and the
implementation of legal provisions. This system
helps to prevent accidents at work and occu-
pational illnesses as far as possible.
Safety experts design work stations, equip-
ment and installations with the focus on
prevention and safety. In order to guarantee
the highest possible level of safety for all
project partners working on construction and
installation sites, the occupational safety team
has been extended to include construction
site experts, thereby exceeding the statutory
requirements. These experts monitor compli-
ance with the safety standards, which are
permanently being updated.
Digitalisation of personnel processes
The company-wide platform "My Porsche
Cockpit" was expanded further in the year
under review. This enables continuous and
constant optimisation of personnel and com-
pany processes. The most important factors
are the networking, integration and automation
of processes, which always occur in close
coordination with the employee representation
and under strict compliance with the data
privacy and data security requirements. For
example, each employee can manage their
own personal data, such as additional qualifi-
cations obtained outside Porsche, using
"My Porsche Cockpit".
The fully integrated digital application and
staffing process has been further developed
in the year under review. This significantly
reduces both the administrative burden and
the processing times. In addition, the system-
related prerequisites for the digitalisation
of numerous other personnel processes have
been created.
Comprehensive connectivity of all Group
companies to the integrated HR IT system
landscape is an essential part of the personnel
strategy. An important milestone was reached
with the piloting of SAP SuccessFactors at
the first international Group companies and a
clear roll-out plan.
32,325
0
2014
2015
2016 2017 2018
64
INNOVATION AREAS
Performance - Employees, Society, Sport, Communication
Employer attractiveness and encouraging
young talents
Porsche's long-term positioning as an attractive
employer is the basis for its successful HR
work. To maintain this, the company supports
numerous young talent initiatives, cooperates
with universities and implements various
communication measures. And this has brought
success: in 2018, Porsche again occupied top
positions among students in relevant employer
rankings. The evaluations in the Universum
Student Survey were particularly successful,
with Porsche earning two first-place rankings
for the first time, among both engineers and
economists. Porsche's strong employer at-
tractiveness is also demonstrated by the rising
number of applicants: the Porsche Group
received more than 160,000 applications in
the year under review.
To promote young professional talents, Porsche
relies on its partnership with relevant uni-
versities and organisations - such as "Formula
Student Germany", an international design
competition sponsored by the Association of
German Engineers (VDI).
Cooperation with renowned universities is
being further expanded, with a specific focus
on the topic of digitalisation. The cooperation
with the newly founded CODE University in
Berlin, initiated in 2017, was brought to life
this year by the implementation of the first
joint projects. In an "Open Innovation Contest",
student teams from the HHL Leipzig Graduate
School of Management and CODE University
Berlin jointly address questions on the topic
of "New Work at Porsche". The format connects
students at the partner universities even more
closely with the Porsche experts and is part
of the university campaign.
OPEN INNOVATION CONTEST
The latter also comprises a new scholarship
programme for IT students at RWTH Aachen
University, which Porsche launched together
with the university to start in the winter
semester 2018/19. Each year, 15 students on
IT BSc and IT MSc courses will be sponsored.
The Porsche IT scholarships are awarded
through the RWTH education fund and include
a special framework programme in addition
to financial support. In addition to specialist
events, general support programmes by the
education fund, such as networking events,
further training possibilities and social events,
are on the agenda.
However, the support of young talents begins
even before university. For the last 18 years,
the best high-school leavers of their year in
Baden-Württemberg have been awarded the
Ferry Porsche Prize in the main subjects
mathematics, physics and technology. In 2018,
the coveted award was presented to 221
young people. Six of them additionally received
a one-year scholarship. The scholars are
selected by drawing lots during the annual
award ceremony in Porsche's Research and
Development Centre.
Porsche is specifically targeting young appli-
cants with a new, modern campaign: high-
quality black and white pictures of employees
convey an authentic impression of the working
world at the sports car manufacturer. At the
same time, central messages of the Porsche
corporate culture - such as practicality,
collegiality, innovation - are conveyed to
the outside world. Soon after it was launched,
the campaign was already awarded the
"HR Excellence Award 2018".
Another focus in the year under review was
on addressing candidates for the manufacture
of the Taycan electric sports car at the
Zuffenhausen site, where a further 1,500
skilled workers are being hired. Social media
is predominantly used for communication
with the applicants. Personnel marketing has
significantly expanded its activities in this
area. Since 2017, a chatbot run by artificial
intelligence has been used on Facebook, for
which the company has also received an HR
Excellence Award in the category "HR tech and
data". The existing social media portfolio was
expanded this year to include Instagram.
This enables young target groups in particular
to gain authentic insights into working life
a Porsche.
The Porsche Code
replaces the previous
management guidelines.
It was enhanced and
developed in 2018.
27,612
29,777
5
LO
Process management and optimisation
The employees are actively involved in the
continuous optimisation of personnel pro-
cesses. New methods and formats such as
creative workshops, for example, were success-
fully tested in the year under review. In addi-
tion, the digital process management tool was
further enhanced: in the HR and Social Policy
department, the respective process owner can
now change and maintain processes directly
in the system.
Successful ideas management
In the year under review, Porsche ideas man-
agement continued to offer employees the
chance to participate in company affairs
beyond their own area of activity. Shorter pro-
cessing times and the new "idea of the month/
year" campaign are making this programme
even more attractive: around 3,000 ideas to
improve efficiency were proposed in 2018.
New ideas can now be submitted digitally in
the production areas as well.
The number of employ-
ees at Porsche AG
exceeded the 30,000
mark for the first time in
the year under review.
On the reporting date,
31 December 2018, the
company counted
32,325 employees,
nine per cent more than
at the end of the previ-
ous year. A significant
Alles Digital
Employees
Porsche
onto the market at the
24,481
25
end of 2019.
22,401
20
20
15
10
driver of jobs is the
Taycan, which will come
WAS BEDEUTET
DIGITALISIERUNG
Porsche school work-
shop in Leipzig Plagwitz
offers the chance to
experience technology.
DIE TREIBER DER
DIGITALEN
TRANSFORMATION
Porsche is also supporting a range of other
initiatives which offer refugees good prospects
in the German labour market. For example,
the company is one of the main backers of
Joblinge gAG Stuttgart. This charitable initia-
tive helps young people with a difficult start
inlife to find apprenticeships. The Berufliche
Anerkennung in Baden-Württemberg (Voca-
tional Recognition in Baden-Württemberg)
bursary programme, organised by the
Baden-Württemberg Foundation, helps
refugees to get the qualifications and training
that they have completed abroad recognised
without experiencing excessive red tape.
As the only federal state in Germany to offer
this type of assistance, Baden-Württemberg
In 2018, as part of the Porsche year of inte-
gration, the sports car manufacturer is once
again preparing 15 young refugees for
vocational training. After successfully com-
pleting this development measure, they
will be offered trainee positions in partner
companies in industries suffering from a
shortage of skilled labour.
Opportunities for refugees
Education and science
WUNSCH
HE
ties on at the company sites
in Stuttgart, Weissach and
Leipzig. There are also
projects at the international
sites, where the foundation
supports projects in
science, research and
training as well as school-
ing and education.
On the occasion of the 70th
anniversary of the sports
car brand, the company has
created the Ferry Porsche
Foundation. The foundation
will primarily focus activi-
HEN GL
WOLFGANG
75
HER
The foundation initially has ten million euros
at its disposal. A further ten million euros will
follow in a second step, after which additional
capital will flow into the foundation annually
from Porsche AG's company profit. With this
initiative, the company is enhancing its social
activities in the long term.
The company has also created the Ferry
Porsche Foundation on the occasion of the
sports car brand's 70th anniversary. The
foundation will primarily focus activities on the
company sites in Stuttgart, Weissach and
Leipzig. There are also projects at the interna-
tional sites, where the foundation supports
projects in science, research and training as
well as schooling and education. Alongside
this, it supports initiatives in the areas of
culture and environmental conservation and
helps socially deprived people. Support for
children and young people is at the centre of
the foundation's work. Porsche plans increas-
ingly to create its own programmes within
the framework of the foundation.
As a successful company, Porsche feels an
obligation to society as a whole. The sports car
manufacturer accepts social responsibility,
particularly at its plant locations. In 2018
alone, Porsche has supported more than 100
individual projects from the areas of education
and science, culture, social affairs, sport
and environment, through donations and CSR
sponsorship activities.
SOCIETY
Performance - Employees, Society, Sport, Communication
24,681
2016
+9%
26,506
2017
28,764
2018
Compared to previous year
Total workforce in Germany
Leipzig
4,392
Ludwigsburg
2,971
6,866
is supported by Porsche through the Stifter-
verband association of German companies and
foundations.
How are young people and young refugees
successfully brought into training and work?
How do companies obtain the necessary
information and support when they want to
train and hire refugees? The Bürgerstiftung
Stuttgart civic foundation opened an educa-
tion campus in the Cannstatter Carré in 2016.
The City is providing the premises. The special
thing about this campus is that the usual
rigid separation of responsibilities does not
apply here. The employment agency, the job
centre, the advice centres of the social welfare
and youth welfare offices, independent
sponsors, the Chamber of Industry and
Commerce and the Chamber of Crafts in the
Stuttgart region are represented on the
campus side by side. The young people receive
advice about vocational orientation; they can
learn German, make contact with sponsors or
create an application portfolio. Porsche con-
tinued to financially support the Bürgerstiftung
Stuttgart's project in the year under review.
Talent Company for schoolchildren
At the beginning of 2018, a special offering
was launched at the Rilke secondary school in
Stuttgart-Rot: the Talent Company. This
provides a specialist room with computer
equipment, modern presentation technology
and a lounge area. Here, schoolchildren are
offered vocational orientation, contact with
regional companies and internship placements.
The emphasis is on the strengths and talents
of the pupils, while school grades play only
a secondary role. The initiative was started by
the Strahlemann Foundation from Heppenheim,
in Hesse. One of the foundation's aims is to
offer young people opportunities and to form
synergetic links between industry and
school. Porsche supported the foundation in
setting up the Talent Company. The patron is
Dr. Susanne Eisenmann, Minister of Education
and the Arts for Baden-Württemberg. There
are 25 further locations across Germany.
In the year under review, the proceeds from
the raffle were donated, among others, to the
"Leipzig helps children" foundation and the
"großstadtKINDER - Theatrium" association.
In this Leipzig institution, children and young
people put on theatre projects with peda-
gogical guidance. An important component of
the work is connecting the educational mission
with artistic aspirations. Another part of the
raffle proceeds went to the "Wolfsträne" asso-
ciation, in which qualified therapists support
children and young people who have lost one
or both parents, or siblings. The "Bemmchen"
association, which works towards offering a
healthy breakfast for schoolchildren, was
another recipient of a donation from the opera
ball raffle. Particularly in socially deprived parts
of the city, children and young people do
not always start their school day optimally
nourished. In order to change this, the associa-
tion provides a breakfast which the children
can eat together before lessons begin. The
objective of this commitment is to create
equal opportunities.
DER KERN DER
DIGITALISIERUNG
Opera Ball with large raffle
of the Stuttgart ballet for
22 years.
In July 2018, Porsche
presented the open-air
event "Ballet in the Park"
for the seventh time; this
was also a farewell to
Reid Anderson, who had
been artistic director
Porsche was the principal
sponsor of the free
concerts for the fifth time
and offered classical music
lovers from the region
the opportunity to enjoy
the excellent Leipzig
Gewandhaus Orchestra live.
only the concerts in the Gewandhaus in Leipzig,
but also the orchestra's international tours.
Music is at the centre of Porsche's cultural
commitment in Leipzig: 70,000 visitors
flocked to the "Klassik airleben" summer con-
certs in Rosental, Leipzig, in the year under
review. Porsche was the principal sponsor of
the free concerts for the fifth time and offered
classical music lovers from the region the
opportunity to enjoy the excellent Leipzig
Gewandhaus Orchestra live. Porsche has been
a Global Partner since 2011 and supports not
Klassik airleben
The Stuttgart ballet ensemble has an excellent
international reputation. Porsche has been
the principal sponsor of the Stuttgart Ballet
since 2012. Porsche is also giving financial
support to the new building for the John
Cranko School for young ballet dancers. In July
2018, Porsche presented the open-air event
"Ballet in the Park" for the seventh time; this
was also a farewell to Reid Anderson, who had
been artistic director of the Stuttgart Ballet
for 22 years. Thousands of ballet fans were
able to enjoy a free performance by the world-
famous ensemble from the state capital of
Baden-Württemberg.
Stuttgart "Ballet in the Park"
STUTTGART "BALLET IN THE PARK"
As well as its commitment to education,
Porsche also supports numerous cultural
topics, such as, for example, the federal com-
petition "Jugend musiziert". Since its founda-
tion in 1963, this competition has developed
into the most important sponsorship project
for young musicians in Germany. Just under a
million children and young people have parti-
cipated in the musical competition in the last
55 years. For many of them, winning "Jugend
musiziert" was the first step towards a
successful career in music.
Weissach
"Jugend musiziert"
77
Performance - Employees, Society, Sport, Communication
Porsche is supporting young people in Leipzig, too: each year, more than 1,500 young people
attend the Porsche pupils' workshop in the VDI GaraGe, a technology centre in the Plagwitz dis-
trict. Under the supervision of a Porsche senior trainer, they learn the basics of vehicle mechanics
and electronics in various courses. The programmes are intended to arouse interest in technical
vocations and, at the same time, to contribute towards university and vocational orientation.
Technology workshop in VDI GaraGe
VDI GARAGE
76
FERRY PORSCHE FOUNDATION
young artistic talents.
Since the earthquake in Wenchuan in 2008,
Porsche China has been securing long-term
educational opportunities for children and
young people from this region. In 2009, this
commitment was given a name: "Empowering
the Future". Since then, it has developed into a
comprehensive, multi-layered CSR programme,
including the following: Mobile Educational
Training and Resource Units (METRU),
Integrated Early Childhood Development and
METRU Plus & Effective Teaching and
Learning. The aim is to improve children's early
development and to encourage promising
Porsche China gets fit for the future
PCNA also supports the American Cancer
Society, the Automobile Hall of Fame, the lib-
eral private Ogelthorpe University in Atlanta,
Stanford University and the Woodruff Arts
Centre, one of the world's largest centres for
the visual and performing arts.
Porsche is internationally positioned as a
company. For this reason, the sports car
manufacturer also shows social commitment
abroad, for example in the USA. Porsche
Cars North America (PCNA), headquartered
in Atlanta, took the "70 years of Porsche
sports cars" anniversary as an opportunity to
support various campaigns for the 70th anni-
versary of the UN Human Rights Charta. On
10 December 1948 in Paris, the UN General
Assembly announced the Universal Declaration
of Human Rights. This is regarded as one of
the most significant achievements of the post-
war period. As part of its sponsorship of the
National Center for Civil and Human Rights in
Atlanta, PCNA supported 70 events, pro-
grammes and tours on the topic of human
rights in the anniversary year. Thanks to this
support, for example, the centre was able to
waive the entry fee for visitors on 10 Decem-
ber, Human Rights Day. In addition, 750
schoolchildren from the region were invited
on this day.
Porsche Cars North America:
diverse commitment
Culture
Bietigheim
951
INTEGRATION YEAR
Sachsenheim
Targets for the percentage of women in
the Supervisory Board, Executive Board
and management
At trade fairs and during formats specially for
women, the company regularly gives infor-
mation about entry opportunities. In 2018, for
example, Porsche was present at "WoMen-
Power", the "Future day for female students"
at RWTH Aachen University and at the "Ladies
Lounge" as part of Formula Student Germany
2018. In addition, the cooperation with
the University of Stuttgart, concluded in
2017, was continued successfully. The event
"TryScience at Porsche" gives interested
schoolgirls, female students and PhD students
at the University of Stuttgart insights into
possible professions in the company which are
based on MINT (mathematics, IT, natural
sciences and technology) subjects. In the year
under review, Porsche was also the host of
PANDA Automotive, a network event for women
who are already experienced managers or
aspire to a management position.
of women among the interns and thesis appli-
cants was 28 per cent. In order to win female
young talented professionals for Porsche,
the cooperation with Femtec, an international
career platform for women in IT, engineering
and natural sciences, which has existed for
over 15 years, was successfully enhanced. In
the year under review, two excursions took
place which provided insights into the working
world at Porsche at the Weissach and Zuffen-
hausen sites. In addition, the company is
involved in the Femtec Alumnae network, for
example in the context of the festivities for the
tenth anniversary of Femtec. At the Alumnae
LIVE 2018 conference, Porsche organised a
workshop on the topic "The transformation of
Porsche into a software company".
In increasing the percentage of women, the
promotion of young talent also plays an impor-
tant role for Porsche. Thus, in 2018, half the
trainees were female, and the proportion
Guaranteeing measurable and binding equal
opportunities is a fixed component of the
target agreements which are concluded indi-
vidually with all the managers. For the promo-
tion of women in management, as well as in
the collective agreement areas, Porsche has
set itself targets which go beyond the legal
requirements. Qualification and further training
measures, as well as mentoring offers, support
female employees in their career planning.
company to around 16 per cent. During the
same period, the number of women in
managerial positions almost trebled. The
percentage of women in management is
around ten per cent.
An important aim towards which Porsche is
continuously working remains the increase
in the percentage of women at all company
levels. Since 2012, Porsche has significantly
increased the percentage of women in the
For their special commitment to the inclusion
of people with severe disabilities, Porsche
already received the "Disability-friendly
employer" award given by the Youth and Social
Policy municipal association in 2017. In the
year under review, the internal inclusion meas-
ures were further promoted under the leader-
ship of the inclusion officer, and cooperation
arrangements were developed. During the "Day
of Persons with Disabilities", a "sensitisation
guided tour" was offered together with the
Porsche Museum for managers from all areas
of the company. The tour gave management
an impression of life with a physical disability,
for example by using a wheelchair, blindfolds
or headphones. The active change of pers-
pective resulting from this encourages the
understanding of managers for colleagues
with disabilities. The Porsche employees were
also invited to take part in the sensitisation
tours by the museum. This enables inclusion to
be promoted in the long term.
In June 2018, Porsche participated in the
German Diversity Day for the second time.
Under the banner of "Everyone is individual.
As a group, we are diverse. Together, we are
successful", the HR department, the Group
Works Council and the representative body for
the severely disabled showcase diversity at
twelve sites around Stuttgart. This exemplifies
the contribution that each individual can
make to equal opportunities and diversity. The
event also offers numerous possibilities for
dialogue. In various training components - for
example, in the context of the Porsche Young
Professional Development or the Porsche
Management Labs - opportunities, challenges
and options for action in handling diversity
are treated in depth.
Equal opportunities and diversity
The Porsche workforce is characterised by
its diversity: employees from more than 80
nations, with the most diverse personal skills,
ensure that Porsche is so successful today.
It is anchored in the culture guideline, and the
Porsche Code derived from it, that managers
should actively promote diversity. In addition,
equal opportunities and equal treatment for
all employees are prescribed in the Porsche
code of conduct. In order to support managers
and employees at all levels in implementing
equal opportunities and diversity, dialogue
platforms and training components are being
continually developed.
As a highlight, a "Code
Camp" is being offered
this year for the first
time, together with the
"Code + Design Initia-
tive". Here, young future
programmers can
expand their knowledge
in exciting projects.
With the exception of
the Christmas holidays,
the children are also
supervised during the
remaining school
holidays.
HOCKETSE
In September, over 3,500 employees partici-
pated in the run and collected a total of
195,000 euros for charitable causes.
As part of the implementation of the law on
the equal participation of women and men in
management positions in the private economy,
the following target figures for the percentage
of women in the Supervisory Board, Executive
Board and upper management levels by
31 December 2021 apply to Porsche AG: with
a view to the long-term commitments of its
members, the Porsche Supervisory Board has
confirmed the status quo of ten per cent as
a target figure for the Supervisory Board. At
the time of the resolution, the Executive Board
positions for all departments were occupied
exclusively by men; the respective contractual
periods extend over several years. For this
reason, the target figure for the Executive
Board was set at the status quo (0%). However,
Porsche's Supervisory Board has set itself the
target of increasing the percentage of women
on the Executive Board in the long term. For
the first and second management level beneath
the Executive Board, the target figure is
15 per cent, which means that Porsche AG is
aiming for almost double the status quo.
The Works Council is also an important part-
ner and driving force in the organisation and
implementation of the traditional Hocketse
for employees and their families at the Zuffen-
hausen site. In 2018, more than 16,000
guests attended the family festival in and
around the main plant. The 6-hour run in
Zuffenhausen was also initiated by the Works
Council. A distance of 911 metres is run here
on the plant premises. For every lap completed,
five euros are donated to charitable organi-
sations from Stuttgart and Zuffenhausen.
Co-determination
CODE CAMP
Porsche also provides flexible working options
with respect to place of work and working
hours. Home office, life phase-orientated flexi-
ble working hours and a voluntary personal
sabbatical are just a few examples of this.
Job-sharing in management functions has also
proven successful in a pilot project and is
now offered throughout the company as a
possible option.
This commitment to reconciling career and
family was honoured in detail in the year
under review by the magazine ELTERN: in a
nationwide survey, Porsche was awarded the
highest grade as one of the "Best companies
for families".
Through its family service, Porsche offers free,
individualised and comprehensive advice and
support for all family life situations. The offer
ranges from advice for prospective parents to
the selection and arrangement of qualified
carers for children and seniors. The company
also offers professional support in the search
for and selection of appropriate care institu-
tions for family members.
Balancing work and family plays an important
role for Porsche. There are numerous offers
which can be used in the context of agree-
ments made jointly with the Works Council.
For example, at the various Porsche sites, child-
care places are offered in nurseries in coopera-
tion with local cooperation partners. In addi-
tion, children of employees are supervised at
the sites around Stuttgart throughout the
summer holidays - including a shuttle service.
As a highlight, a "Code Camp" is being offered
this year for the first time, together with the
"Code + Design Initiative". Here, young future
programmers can expand their knowledge
in exciting projects. With the exception of the
Christmas holidays, the children are also super-
vised during the remaining school holidays.
Work and family
71
Performance - Employees, Society, Sport, Communication
FIT FOR DIGIT@L
611
70
FIT FOR DIG
BASICS
The workforce is informed about the various of-
fers for employees via Porsche AG's various in-
ternal media. In addition, the Works Council
offers a comprehensive platform for infor-
mation and discussion in its regular works
meetings at the German Porsche locations.
Co-determination is valued highly at Porsche
and is an important pillar of business success.
This also includes the numerous collective
wage agreements and works agreements
which were agreed between the company
parties in the year under review.
Occupational health and safety
C<>DE
A motivated and capable workforce is Porsche's
most important resource. In order to maintain
employees' physical fitness so that they
can continue to develop, produce and sell
exclusive, sporty cars today and in the future,
Porsche health management supports the
workforce with various measures to promote
health and prevent illness.
489
757
Other German locations
74
WEISSACH CANTEEN
PORSCHE GASTRONOMY
previous years.
Zuffenhausen
11,727
at locations in Germany
Employees
factor.
IG Metall are another
important success
The company's rapid
growth presents
Porsche with big chal-
lenges, which can only
be mastered if everyone
involved pulls together.
This means that con-
structive cooperation
with the Works Council,
its committees and
Porsche Gastronomy also planned the catering
for numerous events with up to 25,000
guests in the year under review, treating local
guests to culinary delicacies - for example,
at the Porsche Tennis Grand Prix and the
Porsche Hocketse.
Schwarzenberg
Porsche Gastronomy is an important compo-
nent of the corporate culture, which is also
reflected in employer attractiveness. With 14
company canteens and 15 self-service shops
at the German sites, Porsche Gastronomy pro-
vides healthy, varied and diverse meals for all
employees. In the year under review, more than
3.7 million meals were served in the canteens.
In May, the largest Porsche company canteen
to date was successfully put into operation
at the development site in Weissach. Up to
3,400 meals are served here each day.
Regional products such as vegetables and local
butchers' products are regularly on the menu.
Two further company canteens are planned for
the production site in Zuffenhausen.
The protection of the employee has top priority
for Porsche. An organised and structured
system for occupational health and safety
guarantees a targeted and uniform approach
and ensures the implementation of legal
provisions. This system helps to prevent acci-
dents at work and occupational illnesses as
far as possible. The central processes of
22
72
Performance - Employees, Society, Sport, Communication
Employees may also arrange to have a thorough
medical check-up and obtain medical advice
on any health issues. This health check is
carried out by specially qualified doctors. It is
voluntary and takes place during working
hours. After a very successful pilot phase, the
roll-out was launched in the year under review.
This means that an essential aspect of health
provision for employees is supported within
the company. If necessary, physiotherapists
also advise employees directly at the work-
place. Porsche's health management pursues a
holistic approach. Courses on optimal
nutrition, mental strategies or effective
self-management are therefore also offered.
occupational safety are standardised and
regulated by a Group guideline. This guideline
is an essential element of the company's
compliance management system and applies
to all Porsche employees. It is the managers'
responsibility that employees know the
provisions of the guideline and comply with its
directives. Specialists in occupational safety,
Works Council members and company
physicians are available to all employees in an
advisory capacity with regard to occupational
safety. All staff members are also represented
through the legally defined representatives
in committees in accordance with the
Occupational Safety Act.
In addition, the company employs qualified
safety engineers who concentrate on preventa-
tive measures for accident protection. The
design of workstations, machines and equip-
ment is orientated towards the applicable
safety requirements. In order to guarantee the
best possible safety standard for all partners
involved during building and modernisation
projects, the occupational safety team has
been expanded beyond the legal requirements
to include building site experts. These experts
monitor compliance with the safety standards
at the building and assembly sites and
continue to develop them.
Thanks to a collective commitment, the injury
rate has been significantly reduced in recent
years. With a current rate of 5.8 accidents per
million working hours, Porsche AG and Porsche
Leipzig GmbH are at the same level as in
Porsche Gastronomy
73
The Porsche Newsroom
is the central contact
point for journalists,
online multipliers and
stakeholders at the
brand. It is gaining more
and more significance
within communication.
The Newsroom is an
online magazine with a
wide range of content,
and which provides both
a central social media
hub and a research tool
for journalists.
NEWSROOM
BUTO
The Newsroom was again the recipient of
numerous awards in the year under review.
The "Back to Tape" format conceived in coop-
eration with the music journalist Niko Hüls,
which generated 500 social media posts, more
than 40 media reports and was viewed by
around 83 million people, was awarded not
just one, but several prizes. The video docu-
mentation released in the Newsroom and on
YouTube in April was awarded the German
Prize for Online Communication in the "Influ-
encer Communication" category, the Econ
Special Award and the Digital Communication
Award in the "Film and Video" category, and
the silver Annual Multimedia Award in the
"Content Marketing" category.
The increasing significance of the Porsche
Newsroom as a communication channel is
demonstrated by the growth in the number of
hits it recorded over the course of the year
under review. While 211,400 page impres-
sions were counted in January, this figures had
reached more than 385,200 in December
2018. In a year-on-year comparison, the page
impressions increased from 2.4 million (2017)
to 3.7 million in 2018.
Porsche publishes news, facts, interviews and
background reports here every day. Around
570 articles were published in the year under
review. The texts, photos and infographics are
available to download - as are videos, which
are pooled centrally in the new NewsTV area.
The digital agenda setting practised with the
Newsroom is systematically pursued on social
media as well, using Instagram and Twitter.
Along with German and English, the content
available from the Newsroom has also been
offered in Chinese and Russian since 2018.
The Porsche Newsroom is the central contact
point for journalists, online multipliers and
stakeholders at the brand. It is gaining more
and more significance within communication.
The Newsroom is an online magazine with
Newsroom
Pre-Cher OLIVER OLUME
AHRE
AUF
SPEED
BACK TO TAPE
CROSSTURISMO
a wide range of content, and which provides
both a central social media hub and a research
tool for journalists.
PLUS
Performance - Employees, Society, Sport, Communication
In order to address a broad range of target
groups, public relations makes use of a large
number of communication channels. Direct
communication with an audience interested
in the brand and product by means of social
media channels is assuming an increasingly
important role. Very strong growth was
recorded here.
The public relations channels used by Porsche
on Twitter reached 1.6 million followers in
the year under review, which is around 33 per
cent more than in 2017. The number of im-
pressions also crossed the 60 million mark.
The Newsroom's Instagram channel boasted
around 238,000 followers at the end of the
year under review, or 84.5 per cent more than
the previous year. The total number of impres-
sions on our Instagram account amounted
to 70.8 million.
The Porsche Profile on the DriveTribe web plat-
form also recorded positive growth, attaining
22.2 million page impressions and 585,800
followers. This was an increase of 55.8 per
cent in comparison to the year before. All social
media channels maintained by the public
relations and press department arrived at a
cumulative 193 million impressions and
2.6 million followers in the year under review.
89
The product is at the centre
The year under review was also characterised
by the large number of new models that were
launched and which were successfully
accompanied by the Product Communication
department: in 2018, Porsche staged four
trade fair and world premières, along with ten
media driving events in which more than
1,200 media representatives from all over the
world took part.
While celebrating the joint première of the
Cross Turismo and the 911 GT3 RS in Geneva,
135 interviews were organised. 810 articles
were published worldwide which were viewed
by just under 100 million contacts in total
worldwide. The launch of the two new models
in Beijing resulted in additional reporting
involving around 1,700 articles, which reached
just under 40 million contacts. And the
première of the new Macan in Shanghai gener-
ated a huge international resonance, with the
36 interviews and 285 articles published
reaching an audience of 68 million contacts.
This achievement was clearly outdone in
November by the world première of the
eighth model generation of the 911 in Los
Angeles. 620 articles subsequently appeared
in the media, and there were 11,800 social
media posts, which reached an audience of
224 million contacts. With a media coverage
of 34 per cent, the world première and the
trade fair appearance of the new 911 in Los
Angeles also made an impression when com-
pared to other brands. The Californian motor
show also provided the backdrop for the
company to launch its new full-video format
Porsche NewsTV: The livestream that it broad-
cast from the world première of the 911
was viewed 2.4 million times.
1.1 billion contacts. The reaction to the deci-
sion by Porsche ranged largely from positive
to neutral in the media. Only nine per cent
PORSCHE SOUND NIGHT
Porsche also demonstrated how critical topics
can be successfully communicated with its
decision to discontinue diesel technology: the
media response to this topic was overwhelm-
ing, with more than 34,000 articles and social
media posts, and an audience of almost
PREMIÈRE OF THE CROSS TURISMO
Moreover, the public relations and press
department attended 65 motor sports events
and organised four media workshops in the
year under review. Added to this were events
like the Porsche Sound Night, organised by the
Porsche Museum. The event not only thrilled
the audience of around 4,000 in attendance at
the Porsche Arena, but also internet users from
all over the world: the Instagram story posted
by the Porsche Museum was viewed almost
930,000 times, and recorded more than
340,000 page impressions.
PORSCHE
Communication using social media
auto
Performance - Employees, Society, Sport, Communication
ODORT
The Porsche Golf Circle,
an international and
app-based community
exclusively for Porsche
customers who are golf
enthusiasts, already has
over 1,600 members in
its first year.
of the media reports struck a negative tone.
86
ANGELIQUE KERBER
87
COMMUNICATION
Its outstanding reputation is a key factor in
the success of Porsche. Boosting the public
prestige of the company, the brand and its
products, increasing social acceptance and
achieving increased awareness of what
Porsche has to offer are key tasks for commu-
nication activities.
Professional public relations make an impres-
sion on the media and ensure that Porsche is
viewed positively - as a company, as a brand,
and as a product. This publicity work provides
information transparently using the latest
tools, and provides the respective target group
with the right, and best-quality, content.
Operational excellence, which is reflected in
the high levels of effectiveness and efficiency
of the communication, allow public relations
to make a key contribution to value-creating
company growth.
The public relations and press department
provides external and internal stakeholders
with the latest comprehensive information
about all Porsche topics. This applies to
responding to media enquiries and proactive
communication activities in equal measure.
The company issued more than 400 press
releases and oversaw around 600 interviews in
2018. This commitment has brought rewards:
Porsche made the front cover on more than
70 different media outlets.
This department's responsibilities also in-
clude providing adequate information to
journalists, politics and the public in crisis
situations, averting any potential damage to
the company's image.
Authenticity and high-quality standards,
coupled with maximum target group orienta-
tion - these have laid the cornerstones for
the success of public relations by Porsche. A
clear communications strategy, carefully con-
sidered structures with systematic planning
and consistent implementation have paid off:
Porsche Communication was declared the
"Econ Awardee of the Year 2018" in Econ
Forum's renowned company rankings.
ECON AWARDEE OF THE YEAR 2018
Automabwoche
edition
Porsche
88
PORSCHE COVER
THE YEAR
The public relations and
press department
provides external and
internal stakeholders
with the latest compre-
hensive information
about all Porsche topics.
This applies to respon-
ding to media enquiries
and proactive communi-
cation activities in equal
measure.
THOMAS
sportscars AUTOMOVIL
trend.
Auto
911 GT3RS
Forgotten Time
by the large number of
new products that were
launched, the communi-
cation of which was
successfully accompa-
nied by the public
relations and press
department. In 2018,
Porsche staged four
trade fair and world
premières, along with
ten media driving events
in which more than
1,200 media represent-
atives from all over the
world took part.
RUS
STO
CHRI
PHO
CHRISTOPHORUS ONLINE
Once again, the magazine won numerous prizes
in the year under review. Issue 385 alone was
voted "Best of Best" at the Automotive Brand
Contest, winning silver at the Best of Content
Marketing competition (BCM) and snapping
up the Communicator Award with its web-
based version. Issue 387 received the Fox
Award; the website and app scored silver at
the Pearl Award.
Ongoing content-related and conceptual
changes to the magazine were made in 2018.
Issue 385, titled Fast Forward and released
for the 70 years of Porsche sports cars cele-
bration, directed an exclusive focus on topics
related to the future. The editorial team also
blazed new trails at the launch of the new
Porsche 911: immediately following the world
première in Los Angeles at the end of Novem-
ber, Christophorus showcased the eighth
model generation of the iconic sports car - in
its first-ever issue dedicated to one and the
same topic. All content focused exclusively on
the 911.
Christophorus - the magazine with tradition
Christophorus is the long-established journal-
istic flagship of customer communication by
Porsche. Founded in 1952, the magazine has
been delighting customers and fans with
absorbing reports, in-depth essays and inter-
esting information about the Porsche brand
and its products for more than six-and-a-half
decades now. Christophorus appeared five
times, with a total print run of 600,000 copies
per issue, in the year under review. In addition,
all content in the twelve different language
versions is also available online.
RUS
PHO
STO
CHRI
45286
K
ANNIVERSARY BOOK
SPORTWAGEN
PORSC
70 JAHRE
The anniversary of the brand also attracted
plenty of attention in the media: several
thousand articles with a total audience of 337
million contacts were published in relation to
the topic. The high-profile world tour of the
historical Porsche 356 "Number 1" alone was
seen by an audience of eight million contacts.
Porsche celebrates an anniversary
2018 was dominated by the celebration of the
brand anniversary "70 years of Porsche sports
cars". The public relations and press depart-
ment successfully made use of this occasion:
17 books and ten special supplements were
published in connection with the special birth-
day. Worldwide, around 40 events and activi-
ties were organised. The Porsche Museum also
organised a six-month special exhibition.
Double takel
in L.A
Sleepless
THE MAGAZINE CHRISTOPHORUS
ANVA
of the conference was offered; international
media reporting reached an audience of
around 16 million contacts.
Thanks to a new, even more dialogue-oriented
event format, and the invitation of business
journalists from the key Porsche markets,
around 100 journalists attended the annual
press conference in the year under review in
order to obtain extensive first-hand infor-
mation about the 2017 financial year and the
company's future direction. A livestream
The annual press conference held by Porsche
in March traditionally aims to present the
key figures and the business performance from
the preceding year. At the same time, it pro-
vides an outlook for the financial year that has
now started.
Business results
The Porsche Golf Circle, an international and app-based community exclusively for Porsche
customers who are golf enthusiasts, already has over 1,600 members in its first year. The
platform for it is an app for Android and iOS through which users come into contact with other
participants, find playing partners worldwide or can get information about the latest Porsche
golfing activities. In addition, there are training tips in the form of digital golf tutorials, help with
the rules and personal reports. Highlights of the Porsche Golf Circle are exclusive event formats.
In 2018, among other events, they attended the Porsche European Open in Hamburg and the
Ryder Cup in Paris. In November, 80 Porsche customers from all over the world celebrated the
Golf Circle's first birthday on Tenerife.
90
The year under review
was also characterised
Performance - Employees, Society, Sport, Communication
Carrera
Porsche has significantly intensified its dia-
logue with the local residents at the company's
sites in Zuffenhausen, Weissach and Leipzig
since 2015. Among other things, this includes
the community paper targa Nachrichten für
die Nachbarn (targa - the residents' journal),
through which the company informs local
residents about current developments. When
necessary, they are also kept up to date about
any relevant events, such as upcoming
building activities, by letter.
To good neighbours
The format has met with a very positive
response: since being launched, its number
of views on the Porsche online and social
media channels has reached more than
6.5 million. The magazine has meanwhile
bagged numerous awards in 2018, these
included the renowned Best of Content
Marketing competition (BCM) in gold, and
the gold Econ Award as well. In Cannes, the
format was awarded the silver prize in the
Web TV category.
Porsche in Motion: 9:11 Magazin
The web TV format 9:11 Magazin launched in
early 2017 turns the cameras on the brand.
Exactly nine minutes and eleven seconds are
all that is needed to arouse emotions, explain
technological developments and share illu-
minating insights into the history, present and
future of Porsche. People and their personal
stories relating to Porsche form the focus
of the exclusive reports. The film magazine is
aimed at journalists, social media multipliers,
TV and online editorial teams, and fans of the
brand. Five episodes were produced in German
and English in 2018. A Chinese version has
also been integrated into Porsche China's
online communication.
More content on Patrick Dempory
LO
S.GO 227H
9:11 MAGAZINE
9:11 Magazi
Porsche expanded its
range of publications in
2018 by adding new
product lines. This is
why there is now a
series of books titled
Christophorus Edition.
These are aimed at
lovers of the sports car
brand from Zuffenhausen
who also show a passion
for cultural, social and
economic topic areas.
More titles in the Christophorus Edition will
follow in 2019, such as Reader No. 1 - Food
for Thought a collection of essays by
renowned authors on topical issues such as
identity, transformation and digitalisation.
Each article will be illustrated with a work by
an internationally famous artist.
all, the Porsche 911 - the brand's icon - takes
centre stage in many of the works, which range
from different styles of painting to sculpture,
and also include digital art.
The Porsche Artbook was launched at the end
of 2018. The first book in this series presents
20 international artists who have exhibited
enormous creativity in their interpretations of
the sports cars from Zuffenhausen. Above
The collectors' edition of Christophorus in an
XL format kicked off the series, which com-
bined the best articles, reports and portraits
from past issues - supplemented by previous-
ly unpublished photos, an exclusive interview
with the Chairman of the Supervisory Board,
Dr. Wolfgang Porsche, and a 100-minute
documentation about the eventful history of
the sports car brand on DVD.
Porsche expanded its range of publications
in 2018 by adding new product lines. This is
why there is now a series of books titled
Christophorus Edition. These are aimed at lov-
ers of the sports car brand from Zuffenhausen
who also show a passion for cultural, social
and economic topic areas.
the Christophorus Edition
New series of books:
A local site newsletter that appears every
14 days supplements the extensive range of
internal information offered by Carrera. The
newsletters are distributed to the employees
at the company sites in Zuffenhausen, Weissach
and Leipzig in three regional editions. The print
run totals around 8,500 copies. Along with
company news relevant for all sites, the inner
section also covers topics specific to the
respective site. As is the case for Carrera
Magazin, the editorial team also posts addi-
tional, augmented reality content and links
to related articles in the intranet by means of
the Carrera Mobile app.
This service has also won awards: in 2018,
Carrera Magazin won awards at the Auto-
motive Brand Contest and as a part of inte-
grated communication by Porsche - was also
honoured at the Best of Content Marketing
and Econ Award. Moreover, the magazine also
successfully took part in the Communicator
Awards and the Fox Finance Awards.
The online and mobile services are also joined
by a printed Carrera Magazin, which appears
four times a year with a print run of just under
32,000 copies - with one featuring a special
format, Carrera Wissen (Carrera Knowledge).
Each issue focuses on a key topic. In 2018,
these were the topics of Quality, 70 years of
Porsche sports cars and Porsche Culture.
Carrera Wissen took an in-depth look at the
topic of digitalisation in the year under review.
The Carrera Mobile app has also been used
for incorporating augmented reality content,
with audio reports having been added at the
end of 2018. Access to the internal Porsche
job market and a digital Message Board for
private classified ads complete the app's range
of functions.
The Carrera media family is used as the
communication channel for this. The intranet
Carrera Online, its app version Carrera Mobile,
and Carrera TV employee television are used
to keep the workforce at the company and its
subsidiaries up to date on news relating to
important developments and events at Porsche.
Among other things, this includes news about
new products, strategic decisions and internal
news, as well as topics related to service or
explanations of complex processes. The edito-
rial team publishes up to three new articles
every day, which are supplemented by photo.
galleries or videos.
"Internal before external" - this is the motto
of internal communication at Porsche. It aims
to provide the workforce with all news relevant
for them promptly, and well before external
media pick up the topics.
Informed employees
#3
Porsche Sportwagen
70 Jahre
#2
nicht genug
Perfekt ist
91
Porsche Golf Circle grows
18!
The innovative amateur golf tournament series
Porsche Generations Open was staged for
the third time in Germany in 2018. Once
again, the response was positive and shows
that the concept of a team competition with
players from two generations with a minimum
age difference of 20 years evokes interna-
tional interest.
Porsche continued to support the Württem-
berg football club in the year under review.
The donation allows people with a mental
disability to participate in regular training. The
highlight of the cooperation was an exciting
football match between Porsche trainees and
the "People with mental impairment" state
selection.
Training despite handicap
Sport
In addition, Porsche China activated a further
pillar of the CSR strategy 2025 in the year
under review and launched the "Porsche China
Dealer CSR Fund" for dealers and investment
partners. This charitable fund was provided
with around 250,000 euros (two million RMB)
at the start. It is intended to encourage dealers
to develop ideas for social commitment
together with employees, customers and the
local public, which can then be push-started
with fund money. In the first round, six projects
were selected which benefit children in rural
areas, in particular.
versary "70 years of Porsche sports cars" and
the ten-year existence of CSR involvement:
231 runners started at the "911 Track Run"
in the Porsche Experience Centre in Shanghai.
For each participant who completed the
9.11-kilometre route, Porsche China donated
around 115 euros (911 RMB). This resulted in
a total sum of over 25,000 euros for UNICEF.
Porsche China is a long-term sponsor of
UNICEF and its initiatives, which improve the
educational opportunities of children in remote
parts of China.
In China, too, the Porsche team ran for a good
cause in June on the occasion of the anni-
Porsche China supports UNICEF
ACES FOR CHARITY
231 runners started at the
"911 Track Run" in the
Porsche Experience Centre
in Shanghai. For each
participant who completed
the 9.11-kilometre route,
Porsche China donated
around 115 euros
(911 RMB).
supported by Porsche is called "Lese-Heimat"
and aims to impart enjoyment of the German
language to refugee children. It is organised by
the city library, the "Kinder fördern - Zukunft
stiften" foundation ("Support children to enable
a future") and the "Leseohren" association,
which was founded in 2002 in Stuttgart. This
charitable association procures trained reading
sponsors for nurseries, schools and municipal
libraries. The objective: to get children into
reading books, regardless of their background.
The association trains and supervises over
500 voluntary sponsors who regularly read at
daycare centres, district libraries, schools and
other sponsors in the Stuttgart urban area.
Another project to encourage reading which is
In cooperation with "Stiftung Lesen" (the
Reading Foundation), the company is support-
ing the establishment of reading clubs for
children: In the year under review, five new
reading clubs were opened at the Porsche
locations Ludwigsburg, Weissach, Sachsenheim
and Leipzig. In Zuffenhausen, Porsche's main
location, there are two reading clubs founded
in 2017. Children meet here after school to
read, play or work with different media.
They are supervised by pedagogically trained
supervisors. There are over 1,000 reading
club supervisors across Germany, who receive
ongoing further training. This ensures the
growth and further development of the reading
clubs, which now number over 460.
Reading makes you smart
READING CLUB
PORSC
be invested in the planned new building of a
refuge house for abused children in Leipzig's
neighbouring city Halle/Saale.
At the Porsche Leipzig benefit football tourna-
ment in 2018, 30 company teams from
regional firms competed for the coveted chal-
lenge cup and for a good cause. The total
entry money, amounting to 15,000 euros, was
donated to the Leipzig association "Minilöwen"
and the foundation "A Place for Children".
The promotional association "Minilöwen" for
premature and sick newborn babies aims to
provide optimal care for the infants. Two special
devices for lung replacement therapy are to
be purchased with the donation money. The
foundation "A Place for Children" helps affected
adolescents to process traumatic experiences
such as violence, neglect or abuse. The pro-
ceeds from the benefit tournament will
Football challenge for children
CHARITY RUN
par
BE
At the Porsche Tennis Grand Prix, Porsche
offers the best female tennis players in the
world an exclusive stage and the spectators a
top-class sporting experience. However, the
sports car manufacturer also fulfils its social
responsibility at this event. With its "Aces for
charity" campaign, Porsche has supported
charitable campaigns for many years during its
traditional tournament. The company donates
100 euros for each ace. This time, the players
achieved 263 aces - and Porsche generously
rounded up the donated sum to 30,000 euros.
The amount is donated in equal parts to the
tournament's charity partners: the Agapedia
Foundation, which is involved in various pro-
jects for the support of needy and distressed
children, the Olgäle Foundation and the asso-
ciation to support the Stuttgart hospice.
Aces for charity
Lyssclub
PORSCHE
For the Porsche staff in Zuffenhausen, social commitment is a point of pride: over 3,500
employees took part in a charity run in September 2018. At the fourth edition of the Porsche
6-hour charity run, the main plant once again had to negotiate a 911-metre circuit. For each
lap completed, the Ferry Porsche Foundation made a five-euro donation to social projects in the
Stuttgart region. After an impressive 26,415 laps, six charitable organisations from Stuttgart
and Zuffenhausen were able to share the donation amount, which had been generously topped up
by the Foundation to 195,000 euros: the Olgäle Foundation, the Stuttgart Hospice for Children
and Young People, the Gustav-Werner school in Zuffenhausen, Lebenshilfe Stuttgart (a counsel-
ling service), the Neuwirtshausschule school in Zuffenhausen and "Breakfast for children".
Charity Run staged for the fourth time
Social affairs
PORSCHE SAFARI
Financial help for junior sportsmen
and women
Easy disposal of small electronic devices
As part of the sustainability strategy, Porsche
is working together with the Saxony-based
start-up binee in Leipzig. Founded in 2015,
this company has developed a recycling
system that pays for old, unwanted electrical
items and aims to reuse their components.
This reduces the need to extract raw materials
such as iron ore. Porsche employees have the
possibility of easily disposing of their mobile
phones and small electronic devices. Transpar-
ent processes give users insight into the
recycling chain. As a thank-you, each partici-
pant receives a discount coupon for use in
Porsche also supported the Olympia Nachwuchs
foundation in 2018. Each year, it offers 40
sportsmen and women financial security
during preparation and qualification for the
Olympic Games so that they can continue to
combine school, training or studies with sport
at the highest level.
80
Mobil
CHOA
The aim of this relocation is
to help secure the future of
the honey bee population
and thus promote environ-
mental protection and
conservation.
in the area covering 132
hectares in which nature is
allowed to take its course.
three million bees now live
50 colonies totalling around
Under the name "Porsche Safari", the sports car manufacturer initiated a project for environ-
mental education on its off-road site in Leipzig in the summer of 2018. In the summer holidays,
more than 300 children and young people explored the diverse flora and fauna of the factory
premises along a four-kilometre trail. In addition, interactive stations and a viewing platform
were set up at the beginning of the year. The project is a cooperation between Porsche and the
alluvial forest station in Leipzig which, as a recognised sponsor of independent youth welfare,
is in charge of environmental education.
As in the previous year, Porsche moved a further 1.5 million honey bees onto its factory premises
in Leipzig in April 2018. Fifty colonies totalling around three million bees now live in the area
covering 132 hectares in which nature is allowed to take its course. The aim of this relocation is
to help secure the future of the honey bee population and thus promote environmental protection
and conservation. The honey can be purchased in the Porsche shop at the Leipzig plant under
the name "Turbienchen". The diversity of flora in the off-road site provides the best habitat for the
bees, with hawthorn, robinia and lime trees thriving alongside many wild flowers. In addition, the
area provides a natural paddock for some 30 Exmoor ponies and 75 wild cattle. Many other spe-
cies such as pheasants, black kites, frogs, brown hares, deer and bats live here too. The concept is
unique in the automotive industry. From the beginning, Porsche Leipzig has ensured sustainable,
low-resource automobile production with a commitment to nature and the environment. The
plant's off-road site was once a military zone and was restored to nature by Porsche in 2000.
Bees and safari at Porsche Leipzig
In the heart of the Leipzig Neuseenland, a heavily storm-damaged larch wood is being trans-
formed into a mixed woodland with Porsche's help. A total of 18,000 sessile oaks, beeches
and native bushes are being planted on an area totalling three hectares. This improves the
ground quality and increases drinking water generation by around 2.4 million litres per year.
For comparison: a person consumes around 1,000 litres of drinking water per year.
In the year under review, Porsche took part in the planting campaign by the Trinkwasserwald
association in Leipzig and Weissach for the third time. Seventy Porsche employees in Weissach
planted 700 sessile oaks during a "Social Day". The site is located near to the Neuenbühl
industrial area. A total of 5,000 trees are being planted here on 1.4 hectares of forest soil, thus
generating 1.2 million litres of clean ground water per year.
Drinking water forest: Porsche involved in reforestation
For 1,000 years, dry stone walls have been part of the landscape along the Neckar. The growing
pressure of civilisation at the beginning of the 1960s destroyed many of these walls in the
Stuttgart region, and with them the basis of life for animals and plants. Porsche supports the
NatureLife-International foundation, which has a long-term project promoting the restoration
of dry stone walls. Dry stone walls are being restored or rebuilt, for example, between the two
Porsche sites of Bietigheim-Bissingen and Sachsenheim. Now rare plant species, such as iris and
vineyard quince, are being resettled there.
Dry stone walls for rare plants and animals
Porsche supports the
NatureLife-International
foundation, which has
a long-term project
promoting the restoration
of dry stone walls.
Levi's
G
as well. Porsche is supporting both the "Green
Classroom" project and the training of orchard
educators.
In an orchard at Greutterwald in Zuffenhausen,
children from five primary school classes study
nature throughout the year. The "Green Class-
room" concept aims to make schoolchildren
aware of how to treat nature responsibly out-
side the classroom. The Streuobst-Pädagogen
("Orchard Educators") association from Weil
in Schönbuch is involved in environmental
education and aims to promote an understand-
ing of the connections between the ecosystem
and orchards as a cultural asset - for adults,
Orchards a cultural asset
THE "GREEN CLASSROOM" CONCEPT
VIBES
Since the beginning of August, recycled paper
has been used to print out documents in
Porsche offices. This not only reduces costs
but also improves our ecological balance, since
the used-paper product pollutes the environ-
ment far less than conventional printing paper.
Among other things, over 70 per cent less water
and energy is consumed during production,
and around 50 per cent less CO2 is emitted.
Use of recycled paper
For Porsche, thinking and acting sustainably
is far more than just a social obligation.
Sustainability is part of the sports car manu-
facturer's self-image; it is a firmly integrated
component of the strategy and is regarded
as an important success factor. In order to
underscore the relevance of this topic for all
the company divisions, a Sustainability Week
was organised in Zuffenhausen and Leipzig.
In an interactive experience world and with the
aid of expert lectures, the employees received
comprehensive information about possibilities
of avoiding waste, reducing emissions, con-
serving resources and enhancing efficiency.
Sustainability Weeks to educate
Environment
81
Performance - Employees, Society, Sport, Communication
In 2018, Porsche continued to support the
Sporthilfe Sachsen foundation for youth
development with a donation. This foundation
promotes junior competitive sport in the state
of Saxony in the "Talents for the Olympics"
project, as well as the Saxony squad of the
Olympic and Paralympics teams. More than
300 athletes have received support so far.
conjunction with a purchase at one of binee's
partner businesses. The cooperation between
Porsche and binee is an example of the
successful symbiosis of business and inno-
vation in Leipzig.
PLANTING CAMPAIGN BY THE TRINKWASSERWALD ASSOCIATION IN LEIPZIG AND WEISSACH
BINEE START-UP
YOUTH TOURNAMENT "LEIPZIG QUARTER-FINAL"
SAMI KHEDIRA
Junior players interact with professionals
Under the motto "Meet your role model",
young talents have the opportunity to get to
know their idols from the professional teams
of their respective sport. The professionals
give the youngsters lots of important tips as to
how they can continue to improve in all the
relevant areas and motivate themselves in the
long term. In the final round, junior tennis player
Alexandra Vecic meets her role model, Julia
Görges. During the preparations for the Fed
Cup match between Germany and the Czech
Republic in Stuttgart, the German world-class
tennis player is taking a lot of time for the
young talent.
PORSCHE TENNIS GRAND PRIX
Women's tennis
Karolina Pliskova wins the Porsche Tennis
Grand Prix
When on tour around the globe, the best
tennis players in the world occasionally lack
the time for things that are a matter of course
for their peers for example, getting a
driving licence. That's how it came about that
the Czech player Karolina Pliskova has been
the proud owner of a dream car since winning
the Porsche Tennis Grand Prix 2018, but had
to use the services of Porsche Chairman of the
Executive Board Oliver Blume in order to have
the crimson 718 Boxster GTS driven to the
presentation ceremony at the Centre Court of
the sold-out Porsche arena.
She captured the most attractive winner's
trophy in global women's tennis by winning
7:6, 6:4 in a high-quality and exciting final
against the strong CoCo Vandeweghe from the
USA. "I am proud and happy to have finally
won this great tournament," she said, before
Dr. Wolfgang Porsche, Chairman of the Super-
visory Board of Porsche AG, handed her the
winner's trophy. With a view to the 718 Boxster
GTS, she has now long since decided to get
serious about obtaining her driving licence.
"There is no better motivation than this car."
84
Performance - Employees, Society, Sport, Communication
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
85
Successful partnerships and a heart for the
next generation of tennis players
As well as the Porsche Tennis Grand Prix, part-
nerships with the Women's Tennis Association
(WTA) and the German Tennis Federation
(DTB) are further important pillars of the com-
pany's commitment. In addition, in 2018
Porsche is enhancing its presence as the
exclusive automobile partner of significant
WTA tournaments across the globe - in New
Haven and San José (USA), Tokyo (Japan),
St. Petersburg (Russia) and Monterrey (Mexico).
In the year under review, Porsche has also been
the title partner of the "Porsche Race to
Singapore", the official qualifying rankings for
the prestigious WTA Finals in the Asian metro-
polis. As the highest-scoring competitor,
Simona Halep from Romania not only secured
a starting place in the tournament for the eight
most successful players of the season, but
was also rewarded for her consistently strong
performances with a Porsche 718 Boxster
GTS. In 2019, the WTA Finals in Singapore will
move to Shenzhen, China. Porsche will continue
its successful cooperation with the WTA as the
title partner of the "Porsche Race to Shenzhen",
and as the official and exclusive automobile
partner to the WTA and the WTA Finals.
As premium partner of the German Tennis
Federation (DTB), Porsche has been bringing a
new impetus into German women's tennis
since 2012. And with success: Porsche Team
Germany has attracted attention with victories
in the Fed Cup, Julia Görges has entered the
top ten of the world rankings for the first time
in her career and, in Angelique Kerber, Germany
now has its first Wimbledon ladies' champion
in 22 years, since Steffi Graf. Youth develop-
ment is close to Porsche's heart in tennis, as
well: in the Porsche Talent Team, promising
sportswomen are supported professionally on
their way to higher goals. The successes of the
top players supported by Porsche give them
an additional incentive.
Three of these players, whose class and
personality stand out both on and off the
court, present Porsche as brand ambassadors:
Maria Sharapova, Angelique Kerber and, as
of 2018, Julia Görges. The most successful in
her sport in 2018 is Angelique Kerber: the
Kiel-born tennis player started the season in
January with victory in Sydney and celebrated
the greatest success of her career in July
with victory at Wimbledon.
PORSCHE TEAM GERMANY
Angelique Kerber: from Wimbledon to the Porsche Museum
Porsche Team Germany
has attracted attention
with victories in the Fed
Cup, Julia Görges has
entered the top ten of
the world rankings for
the first time in her
career and, in Angelique
Kerber, Germany now
has its first Wimbledon
ladies' champion in 22
years, since Steffi Graf.
Many great sportsmen and women love to share the enjoyment of their success with all those
who have accompanied and supported them along the way. Angelique Kerber is no exception.
She was immediately enthusiastic about the idea of holding her first press conference in
Germany as the new Wimbledon champion with Porsche as the host in the Porsche Museum.
After all, as a brand ambassador and two-time winner of the Porsche Tennis Grand Prix, she has
a very special relationship with the Stuttgart sports car manufacturer.
Numerous journalists from press, radio and television took the opportunity to talk to her in the
Porsche Museum so soon after her triumph and to hear her recount her fantastic week at
Wimbledon. "Winning Wimbledon was my dream even as a child. I still can't believe that I have
actually now done it," said Angelique Kerber, who was quite surprised at the great media interest
in the Porsche Museum: "I had not expected such a reception."
PORSCHE
Golf
Porsche European Open in Hamburg
In July, Porsche was the title partner of this
prestigious European Tour tournament, which
has a prize fund of two million euros, for the
fourth time. Play took place on the Porsche-
Nord course of the Green Eagle Golf Courses.
The tournament week began with the "Porsche
Urban Golf Challenge" on the Spielbudenplatz in
the heart of St. Pauli, Hamburg. In this show
event, international stars such as Patrick Reed,
Bryson DeChambeau, Pat Perez (all USA) and
Charl Schwartzel (South Africa) promoted the
Porsche European Open. In midsummer tem-
peratures, over 39,000 spectators watched a
strong display by top international players on
the four tournament days. As in previous years,
the winner, Richard McEvoy (England), was a
professional who until that time had not yet
won a tournament on the tour. Just as surpris-
ing was the German amateur Allen John: the
30-year-old who appeared in the first German
Bundesliga for the men's team of the St. Leon-
Rot golf club won the gold medal in golf at
the Olympic Games for the aurally impaired in
Samsun, Turkey in 2017. He slipped into the
field of the Porsche European Open with a wild
card and went on to share second place.
Porsche Golf Cup grows again
More than 15,000 amateur golfers took part
in 217 preliminary rounds tournaments of the
Porsche Golf Cup 2017 in its 30th edition.
Once more, this broke the previous season's
record for participation. This underlines the
growing interest of Porsche customers in golf.
The best 80 players from 20 nations qualified
for the world final in May 2018 in Mallorca.
The winner of the prestigious nations ranking
was Team Russia. This exclusive amateur
tournament series for customers has existed
since 1988 and is organised by Porsche
together with the distribution companies and
Porsche Centres.
Porsche Generations Open goes into
its third year
Leipzig for a further three years. The focus of
the cooperation is on supporting children from
socially disadvantaged families. At the youth
tournament, junior teams in the age groups
U11 and U14 have been competing since
2015; the teams form themselves and each
represent one of four districts in Leipzig. More
than 3,400 children have already taken part in
the tournament between 2014 and 2018.
The Porsche Coaching Bank is also part of the
partnership. This is where spectators can
follow the games in the stadium directly from
the edge of the playing field. In addition, the
sports car manufacturer enables the running
children to stand on the turf next to their idols.
Porsche also selects the best junior team from
the "Red Bulls" each year as a Porsche Talent
Team and supports the club's talent scouting
days with the "RB Leipzig Kaderschmiede".
Porsche Juge
"Leipzig Quarter-Finals" very popular
Turbo für Porsche will remain the youth partner of RB
82
82
Performance - Employees, Society, Sport, Communication
83
SPORT
Porsche is involved in sport in various ways. As
well as its activities in professional women's
tennis and professional men's golf, the company
supports junior players through various coop-
erations. The objective is to support the young
people both in terms of sport and socially,
and thus to prepare them for their future
professional life.
Youth support
Turbo for talents
Since competitive sport is not possible without comprehensive basic training, Porsche supports
children and adolescents in football, basketball and ice hockey in Stuttgart and Leipzig, under
the motto "Turbo for talents". Partner clubs are RB Leipzig, SG Sonnenhof Großaspach,
SV Stuttgarter Kickers, SC Bietigheim-Bissingen Steelers and the Porsche Basketball-Akademie
Ludwigsburg.
SCHE
Porsche Jugendrorderung.
Porsche honours young athletes
150 young athletes from RB Leipzig,
SV Stuttgarter Kickers, SG Sonnenhof Groß-
aspach (football), SC Bietigheim-Bissingen
Steelers (ice hockey) and the Porsche Basket-
ball Akademie Ludwigsburg came to Zuffen-
hausen for the third "Porsche Night of Talents".
The highlight was the award of the Turbo 2018
prize, presented in three categories: best
sporting development, best school achieve-
ment and exceptional social commitment. The
prize: a subsidy towards getting a driving
licence. In addition, the participants can visit
the Porsche factory and compete against each
other in a sporting contest in race simulators.
PORSCHE EUROPEAN OPEN IN HAMBURG
Porsche Nacht der Talente 2018
Sami Khedira
The professional footballer and world champion
Sami Khedira, who grew up in Stuttgart, is
the new ambassador of Porsche youth devel-
opment. He will give training tips and take part
in "Turbo for talents" events. From his own
experience, he knows that professional youth
development must also include school and
social components, which is another reason
why Khedira is a role model for all ambitious
talents. At his first appearance as part of the
partnership in the "Talent barn", the ice rink
of the junior team of SC Bietigheim-Bissingen
Steelers, Khedira is already getting to know
some young players from the partner clubs. He
also goes through the Porsche Coaching-Mobil
so that the young people can use his perfor-
mance data to benchmark their own.
Turbo für Talente.
Porsche Jugendförderung.
Winner
2018
Karolina
Pliskova
PORSCHE YOUTH DEVELOPMENT
Porsche Coaching-Mobil
From April to October, the Porsche Coach-
ing-Mobil was out and about almost every
weekend. This resulted in 28 events and 47
days of deployment - not just at the five part-
ner clubs in the Stuttgart and Leipzig regions.
More than 4,000 children and young people
took part in the activities. The Coaching-Mobil
- a trailer with sports equipment and instru-
ments to measure performance data - was
specially developed for youth training. This
gives young talents the opportunity to evalu-
ate their sports performance better and to ad-
just their further training accordingly. In addi-
tion, age-dependent reference values provide
a benchmark for comparing results.
FEED
d
The Coaching-Mobil -
a trailer with sports
equipment and instru-
ments to measure
performance data -
was specially developed
for youth training.
PORSCHE NIGHT OF TALENTS
Ambassador of youth development:
In the year under review, five
new reading clubs were
opened at the Porsche
locations Ludwigsburg,
Weissach, Sachsenheim and
Leipzig. In Zuffenhausen,
Porsche's main location,
there are two reading clubs
founded in 2017. Children
meet here after school
to read, play or work with
different media.
Carrera
für uns alle
Performance Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
97
THE PLUG-IN HYBRID CAYENNE
The plug-in hybrid Cayenne
The new Cayenne E-Hybrid combines the
best driving dynamics in its class with maxi-
mum efficiency. Its three-litre V6 engine
(250 kW/340 hp) and an electric motor
(100 kW/136 hp) combine to generate a
system power of 340 kW (462 hp). The maxi-
mum torque of 700 Nm is already available
just above idling speed, with a boost strategy
to match that of the 918 Spyder supercar.
This ensures that the electric engine can be
used in all the standard Sport Chrono Package's
driving modes for an additional performance
boost. The Cayenne's plug-in hybrid drive
accelerates the car from zero to 100 kilometres
per hour in five seconds and hits a top speed
of 253 km/h. The new Cayenne E-Hybrid can
drive up to a distance of 44 kilometres and
speed of 135 km/h on electricity alone. With
the launch of the hybrid variant, Porsche is
expanding its range of comfort and assist-
ance systems for the entire Cayenne series,
with additional options such as the new
head-up display, massage seats and 22-inch
alloy wheels.
While the combustion engine's performance
shows a moderate five kW (7 hp) improvement
on its predecessor to 250 kW (340 hp), the
performance of the electric engine is now over
43 per cent higher at 100 kW (136 hp).
Battery capacity has improved significantly in
the Cayenne E-Hybrid, along with the elec-
tric-power range and the boost reserves: in
comparison to the previous model, capacity
has been increased about 30 per cent from
10.8 to 14.1 kWh. The fluid-cooled battery,
stored beneath the loading floor in the
rear of the car, consists of eight cell modules
with 13 prismatic lithium ion cells each. The
high-voltage battery is fully charged from
a 230-volt 10-amp outlet within 7.8 hours. If
the optional 7.2-kilowatt on-board charger
and a 230-volt connection with 32 amps are
used as an alternative to the standard
3.6-kilowatt charger, the battery will be fully
recharged in just 2.3 hours.
The charging process can be managed and
monitored via Porsche Communication
Management (PCM), and remotely using the
Porsche Connect app. Porsche Connect can
also be used to find and filter charging stations
and set them as a navigation destination. The
new Porsche Charging Service allows cross-
provider access to public charging stations -
without requiring additional registration with
the relevant provider. This is billed directly
via the Porsche ID account.
The new Cayenne
E-Hybrid combines the
best driving dynamics in
its class with maximum
efficiency. Its three-litre
V6 engine (250 kW/
340 hp) and an electric
engine (100 kW/136 hp)
combine to generate a
system power of
340 kW (462 hp).
919 HYBRID EVO
Hemmingen and Rutesheim become
Porsche sites
Porsche has already been operating its Sport
Utility Vehicle development centre in
Hemmingen for 20 years. The growing impor-
tance of the SUV is also clearly evident from
the development of the site. What began
as a single building with 200 employees has
grown into a site covering 27,000 square
metres with 600 staff. The fourth generation
of the Cayenne is set to play a major role in
Porsche's long-term e-mobility strategy. As
well as the Cayenne, Hemmingen is also home
to the Macan. The Rutesheim site was first
opened in 2015. The workshop area of some
7,000 square metres is used to prepare vehi-
cles from all of the model series for test drives.
911 GT3 R
Porsche has designed a
new customer sports
racing car for the world-
wide GT3 series: the
911 GT3 R will be lining
up on the grid from
2019 onwards. This 911
race car, developed on
the basis of the 911 GT3
RS production model,
delivers up to 404 KW
(550 hp).
The new 911 GT3 R customer sports race car
Porsche has designed a new customer sports
racing car for the worldwide GT3 series: the
911 GT3 R will be lining up on the grid from
2019 onwards. This 911 race car, developed
on the basis of the 911 GT3 RS production
model, delivers up to 404 kW (550 hp). It
boasts a high level of aerodynamic efficiency,
improved handling and further optimised safety
features. The roof, front cover and fairing, wheel
arches, doors, side and tail sections as well
as the rear cover and interior trim are made of
carbon-fibre composite material (CFRP) and
all of the windows are polycarbonate.
Powering the new 911 GT3 R is a four-litre
flat-six boxer engine, which is largely identical
to the high-performance production engine
in the 911 GT3 RS. Direct petrol injection,
which operates at pressures up to 200 bar,
and variable valve timing technology ensure a
particularly efficient use of fuel. The normally
aspirated engine also offers significantly better
driveability and a broader usable rev range
compared with its predecessor. The engine
response is more precise due to six throttle.
butterflies. Power from the rear engine is
transferred to the 310 mm-wide rear wheels
via a Porsche sequential six-speed constant-
mesh gearbox with an electronic shift actuator
for particularly fast and precise gear changes.
The clutch is electro-hydraulically controlled,
which eliminates the need for the clutch pedal
and assists quick race starts. The 911's typical
weight distribution ensures excellent traction
and braking performance. The spectacular
aerodynamics of the 911 GT3 R are also remi-
niscent of the road car.
The braking system has been further modified
to offer even better stiffness and more precise
control of the ABS. On the front axle, six-piston
aluminium monobloc racing brake callipers
combined with ventilated and grooved steel
brake discs with a diameter of 390 millimetres
ensure outstanding braking performance.
Fitted at the rear axle are four-piston callipers
and discs measuring 370 millimetres.
The development process also focused heavily
on the safety features of the GT3 R. In order
to improve pit stop performance, the 120-litre
FT3 safety fuel cell can now be refilled from
the left or the right depending on the circuit
layout. The doors and the side windows can be
removed. The new racing bucket seat affords
drivers even better protection in the event of a
collision. The seats are now bolted at six points.
In combination with the adjustable pedal box,
the driver's centre of gravity is optimised and
offers increased safety in the event of an im-
pact. In addition, the driver is protected thanks
to a side impact element positioned in the
driver's door, which consists of a carbon-fibre
Kevlar aluminium construction with energy-
absorbing plastic foam.
For the first time the 911 GT3 R is fitted with
air-conditioning. This ensures ideal interior
cooling and, thanks to the direct connection
to the seat and driver's helmet, enables par-
ticularly efficient cooling of the driver, which
in turn helps maintain concentration and con-
sistent performance throughout the race.
98
Performance Research and development
99
Moreover, Porsche also seeks personal con-
tact. This is why regular dialogue events have
been held at the company's sites since 2016.
This gives local residents the opportunity
to discuss their current concerns directly with
the experts from Porsche. Porsche issued
invitations to these events in Zuffenhausen
twice in the year under review, and used
the occasion to provide information about
the progress of building activities, and gave
detailed answers to questions asked. More
than 500 interested citizens took advantage
of each opportunity to communicate directly
with Porsche and obtain information directly
from the source.
Eine Kultur
During the year under review Porsche acquired
the previously leased sites for the two branch
offices of the research and development
centre in Hemmingen and Rutesheim. There
are plans for expansion at both sites in the
coming years. This investment forms part of
the company's preparations for its hybridi-
sation and electrification strategy.
96
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Porsche works driver
Neel Jani from Switzer-
land recorded a lap time
of 1:41.770 minutes
over the 7.004 kilometre
grand prix circuit,
shaving 0.783 seconds
off the previous fastest
time set by Great
DIGI
Britain's Lewis Hamilton
in a Mercedes F1 W07
Hybrid. Jani clocked a
top speed of 359 km/h
during his record-break-
ing lap with an average
speed of 245.61 km/h.
92
WISSEN
Performance - Employees, Society, Sport, Communication
Zehn Millionen Euro für Ferry-P
Stiftung
CARRERA ONLINE
9:11
Zehn Millionen Euro für
Ferry-Porsche-Stiftung
93
Research and development
RESEARCH AND DEVELOPMENT
World premières in Geneva: Mission E Cross
Turismo and 911 GT3 RS
At the 88th International Motor Show in Geneva
in March, two Porsche models celebrated their
world première: the new 911 GT3 RS and the
Mission E Cross Turismo - a concept study for
an electrically powered Cross Utility Vehicle
(CUV). This all-rounder is perfect for people
with active lifestyles and a passion for travel,
sport and the great outdoors. The flexible
interior will accommodate any type of sports
equipment, while modern load-carrying sys-
tems are the perfect solution for transporting
surf boards and bikes. In October the Porsche
Supervisory Board confirmed series produc-
tion of the Mission E Cross Turismo.
The highlights of this Taycan-inspired deriva-
tive are its emotional design with striking
off-road elements, as well as the innovative
display and operating concept with touch-
screen and eye-tracking control. Measuring
4.95 metres in length, the four-door Cross
Turismo has all-wheel drive and an 800-volt
architecture. Its battery can be charged using
the fast-charging network as well as via in-
duction at a charging station or using the
Porsche home energy storage system. It has
a driving range of more than 500 kilometres
(NEDC). Two synchronous motors (PSM) with a
system output of more than 600 hp (440 kW)
allow the Mission E Cross Turismo to accel-
erate to 100 km/h in less than 3.5 seconds
and to reach a speed of 200 km/h in under
12 seconds. This level of continuous power is
also unmatched by any other electric vehicle:
multiple accelerations are possible in direct
succession without any loss of performance.
UNG
MISSION E CROSS TURISMO
S:GO 5000
GT3 RS
The new 911 GT3 RS is currently Porsche's
most powerful road-legal high-performance
sports car. Its naturally aspirated four-litre
engine develops 520 hp (383 kW), and revs
up to 9,000 rpm. As with the heart of the
new GT model, the chassis has also been taken
straight from the world of motor sport, with
uncompromising precision and the added
extra of rear-axle steering. The 911 GT3 RS
accelerates from zero to 100 km/h in 3.2 sec-
onds and has a top speed of 312 km/h.
New 911 GT3 RS sets new record time
through the 'Green Hell'
Another fastest ever time for a street-legal
Porsche sports car was set by works driver
Kévin Estre, once again on the Nürburgring
(Nordschleife), the most challenging racing
circuit in the world. Driving the new 520 hp
GT3 RS, the Frenchman recorded a lap time of
6:56.4, slashing some 24 seconds off the
best time achieved with the previous GT3 RS
model. Sharing driving duties with Estre was
Porsche development driver Lars Kern. After
the 918 Spyder and 911 GT2 RS, the new GT3
RS is now the third production Porsche sports
car with a notarised lap time of less than seven
minutes on the race track formerly known
as the Green Hell. The time was measured
around the 20.6-kilometre lap.
in 5:19.55 minutes, with an average speed of
233.8 km/h. In so doing, Bernhard beat the
previous lap record, set by Stefan Bellof, by
51.58 seconds. Bellof's 6:11.13 record had
stood for 35 years and 31 days. His average
speed during his record-breaking lap had been
in excess of 200 km/h.
In late June, Timo Bernhard, at the wheel of
the 919 Hybrid Evo, lapped the 20.832-kilo-
metre Nürburgring Nordschleife race circuit
The WEC efficiency regulations limited the
energy from fuel per lap by using a fuel
flow meter. At the 2017 world championship
race in Spa, in the Porsche 919 Hybrid's
final season, the car was permitted to use
1.784 kilograms/2.464 litres of petrol per lap.
This took the V4 combustion engine's output
to around 500 hp. Freed from this restriction,
and equipped with updated software but
running the regular race fuel (E20, containing
20 per cent bioethanol), the 919 Hybrid Evo
delivers 720 hp. The amount of energy from
the two recovery systems that could be used
in Spa 2017 was set at precisely 6.37 mega-
joules per lap. This was well below the sys-
tems' potential. On his record lap, Neel Jani
enjoyed a full boost of 8.49 megajoules - the
output increased by ten per cent to 440 hp.
Carrera
919 Hybrid Evo sets record lap times
Porsche has chalked up a new course record
at Spa-Francorchamps with an Evo version
of the Le Mans-winning 919 Hybrid. Porsche
works driver Neel Jani from Switzerland
recorded a lap time of 1:41.770 minutes over
the 7.004-kilometre grand prix circuit, shaving
0.783 seconds off the previous fastest time
set by Great Britain's Lewis Hamilton in a
Mercedes F1 W07 Hybrid. Jani clocked a top
speed of 359 km/h during his record-breaking
lap with an average speed of 245.61 km/h.
The race director sends the safety car out
onto the course in the event of a caution period
during which the field needs to be brought
together. For its part, the 911 Turbo is the
perfect vehicle for the job, achieving speeds
of up to 320 km/h thanks to its 3.8-litre six-
cylinder engine. Meanwhile, the Sport Chrono
Package, fitted as standard, ensures optimum
mid-acceleration. The all-wheel drive 911
produces 540 hp (397 kW) and can sprint
from zero to 100 km/h in just three seconds.
From a technical perspective, the safety car
is predominantly built to the series standard.
Racing-specific adjustments, such as the
roof-mounted light bar and the radio for com-
municating with the race director, are add-ons.
The car's braking system and chassis are also
optimised for the track. The matt black design
with bright red stripes takes its inspiration
The 919 is powered by a compact two-litre
V4 turbo charged engine and two different
energy recovery systems - braking energy
from the front axle combined with exhaust
energy. The combustion engine drives the rear
axle while the electric motor boosts the front
axle to accelerate the car with all-wheel drive.
At the same time, the 919 allows energy from
the exhaust system that otherwise would
pass unused in to the atmosphere to be recu-
perated. The electrical energy generated by
the front brakes and the exhaust system is
temporarily stored in a liquid-cooled lithium
ion battery.
Safety cars and support vehicles for
the FIA WEC
from the Porsche crest of the works race cars.
THE 911 TURBO AS SAFETY CAR
The 911 Turbo is used as the safety car at the
FIA World Endurance Championship. Porsche
is providing five 911 Turbos between now
and 2020. Two of the cars accompany the race
cars during the global championship, while
three are based permanently in Le Mans. A
further eleven Porsche cars are driven by the
race doctors, safety teams and other officials.
In total, 16 Porsche sports cars from different
model ranges are deployed in a variety of
functions during the FIA WEC.
To mark the "70 Years of Porsche Sports Cars" anniversary, customers and fans of the brand were
invited to join together and celebrate the fascination of Porsche in early June 2018. "Sportscar
Together Day" events were held at the brand's sales locations all around the world. One highlight
was the "Sportscar Together Day" at Cannstatter Wasen in Stuttgart, in which more than 40,000
Porsche fans took part - including US actor Patrick Dempsey, "Urban Outlaw" Magnus Walker,
Le Mans winner Marc Lieb and race engineer Norbert Singer.
SPORTSCAR TOGETHER DAY
"Sportscar Together Day"
events were held at the
brand's sales locations
all around the world.
One highlight was the
"Sportscar Together Day"
at Cannstatter Wasen
in Stuttgart, at which
more than 40,000
Porsche fans joined in
the festivities.
SPORTSCAR TOGETHER DAY
AvD-Oldtimer-Grand-Prix:
Porsche Classic celebrates an anniversary
In August 2018, Porsche Classic celebrated
70 years of living sports car history at the
AvD-Oldtimer-Grand-Prix on the Nürburgring.
Standing in for the successes of the classics
from Zuffenhausen, another anniversary was
also in the spotlight: the 30-year anniversary
of the 964 generation of the 911. Motor racing
fans were delighted by the participation of
Derek Bell, the five-time overall winner of the
24 Hours of Le Mans. He started in a 911
from 1965 in the "Gentlemen Drivers" class.
"Sportscar Together Day" worldwide
In the reporting year, Porsche Classic appeared
at the Techno Classica with a new stand
concept, many product highlights and special
vehicles. Spread over more than 1,500 square
metres, the brand celebrated two anniversa-
ries in one fell swoop: 70 years of Porsche
sports cars and 30 years of the Porsche 911
Type 964. The brand presentation focussed on
genuine parts, new services and restorations.
The visitors had the chance to see for
themselves the quality of Porsche Classic
works restorations in the impressive form of a
completely restored Porsche 959 and the
body-in-white of a Porsche 356. Moreover,
13 Porsche Classic Partners from seven
European countries exhibited cars for sale and
provided information about their services.
Porsche at the Techno Classica with a new
stand concept
"Project Gold": 911 classics made of
Genuine Parts
Highly attractive collector's item: Porsche
Classic built the last 911 Turbo with an
air-cooled engine - 20 years after the end of
series production. The one-of-a-kind 911
Turbo of Type 993 was built on the basis of an
original body-in-white. The extraordinary
nature of its creation is matched only by its
appearance: visually, the classic car in Golden
Yellow Metallic draws on the design of the
911 Turbo S Exclusive Series of the Type 991.
The black wheels feature design lines in golden
yellow, the seats and interior are black with
golden yellow appliqués. The body features
the characteristic side air intakes of the Type
993 Turbo S, which were also available as an
option for the 911 Turbo in 1998. The 331 kW
(450 hp) sports car classic celebrated its
world première at the Porsche Rennsport
Reunion in Laguna Seca (USA) on 27 Septem-
ber 2018. On 27 October 2018, the one-off
classic, which can only be driven on private
circuits, fetched USD 3.1 million in a RM
Sotheby's auction at the Porsche Experience
Centre in Atlanta. The proceeds benefit the
charitable Ferry Porsche Foundation.
114
Performance - Sales, Production, Procurement
PROJECT GOLD
The one-of-a-kind 911
Turbo of Type 993 was
built on the basis of an
original body-in-white.
The extraordinary nature
of its creation is
matched only by its
appearance: visually, the
classic car in Golden
Yellow Metallic draws on
the design of the 911
Turbo S Exclusive Series
of the Type 991.
3D printer provides spare parts
for historic models
"No longer available" - for collectors of rare
classic cars, the unavailability of spare
parts can quickly become a problem. In the
worst case scenario, it can mean decommis-
sioning. The sports car manufacturer is coming
to the rescue: Porsche Classic manufactures
extremely rare parts that are only needed in
small quantities using 3D printers. All spare
parts that are produced this way are true
to the original, from both a technical and a
visual perspective.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
113
115
In addition, for the first time the Oldtimer-
Grand-Prix held two races in the current
Porsche Carrera Cup Deutschland.
PROJECT GOLD
The "Porsche Passport" allows customers to
sign up for a monthly subscription. It enables
frequent vehicle changes, unlimited mileage
and on-demand access to up to 22 different
Porsche models. The pilot program started
in 2017 and will continue to be rolled out in
successive steps.
112
PRODUCTION
111
11
Sales pop-up: new sales concept
Spontaneously appearing right where the
people are - this is the basic concept behind
the sales pop-up format. The Porsche brand
pops up briefly at a hot-spot or place with a
whole new type of customer potential. The
sales pop-ups are operated by the local
Porsche Centres. The company has developed
a modular equipment concept for the innova-
tive marketing format. This makes it possible
for the different locations to use the concept in
a market-appropriate manner regardless of
size - be it indoors or under the open sky. The
focus is the quality of the experience: the idea
is for customers, prospective customers and
random passers-by to feel as comfortable as
possible. Blumenau - an up-and-coming
major city in the south of Brazil - was the first
place to host a Porsche Sales pop-up between
mid-October and the end of December 2018.
Over a space of 225 square metres, the
centrally situated pop-up offered space for
two exhibition vehicles, a configuration area
and a lounge. The second Sales pop-up -
dubbed "La Mer" - opened on one of the most
popular beaches in Dubai at the end of October
2018. Through to mid-January 2019, Porsche
showcased a constantly changing line-up of
sports car models beneath the open sky. The
exhibition space was surrounded by a large
lounge area.
PORSCHE EXPERIENCE CENTRE HOCKENHEIM
New Porsche Centre in Hamburg
Some 800 invited guests celebrated the grand opening of the new Porsche Centre in Hamburg in
July 2018. It is among the most modern sales locations worldwide. At the Lübecker Tor junction,
Porsche is exhibiting the entire model range as well as all products and services associated with
the brand. The 10,900-square metre grounds include a roughly 2,100-square metre showroom
for up to 50 new and used vehicles. The workshop area is equipped with 25 lifting platforms.
There are twelve charging pedestals for customer vehicles in front of the centre, with fast charg-
ing pedestals to be added in 2019. In the customer consultation area, a Customer Concierge
is supported by a technology expert who can advise customers on questions of digitalisation and
connectivity. Also new is the "Valet Parking Service".
At the Lübecker Tor
junction, Porsche is
exhibiting the entire
model range as well as
all products and services
associated with the
brand. The 10,900-
square metre grounds
include a roughly
2,100-square metre
showroom for up to 50
new and used vehicles.
PORSCHE
Other Porsche Experience Centres
Experience the fascination of Porsche at first
hand. This slogan typifies the new Porsche
Experience Centre in China, the first centre of
its kind in Asia. The centre, located in direct
proximity to the Shanghai International Circuit,
is the sixth such site in the world. The
110,000-square metre grounds offer custom-
ers and fans a handling track, an offroad
course, a restaurant, a café, conference facili-
ties and a Porsche Driver's Selection Store.
The grand opening was celebrated by some
300 invited guests in April 2018. The seventh
customer experience centre from Porsche is
now in the works: the groundbreaking cere-
mony in the heart of the Hockenheimring was
held in October 2018. Over the next two years,
the roughly 160,000-square metre section
of the grounds will see the construction of a
modern building complex, a handling track,
various driving dynamics tracks and an offroad
course. The new Experience Centre is slated
to begin operations in late 2019. Porsche is
implementing the project together with
Emodrom GmbH, which is responsible for the
strategic development of the Hockenheimring.
Factory collection in Zuffenhausen
at historic Plant 1
Performance - Sales, Production, Procurement
Historic Plant 1 in Zuffenhausen re-opened for
customers in 2018. Porsche Exclusive opened
factory collection and customer consultation
services in the historical brick building in
summer 2018. Plant 1 has continued to unite
tradition and the future down the ages: in
Pilot programme in the USA: Porsche starts
peer-to-peer sharing programme
Imagine having the opportunity to drive a
Porsche when and as needed without having
to buy or lease it - this is exactly what the
"Host" pilot programme launched by the sports
car manufacturer in the USA in 2018 makes
possible. "Host" arranges short-term use
of privately owned Porsche vehicles. After the
introduction of the "Porsche Passport" sub-
scription model, this peer-to-peer service is
the next step toward new mobility concepts.
The pilot programme also draws in customers
of other brands, allowing them to get a taste
of the sporty driving experience offered by the
Porsche brand.
Starten Sie eine Probefahrt in Augmented Reality
Brake
AUGMENTED REALITY APP
Mission E via augmented reality
Explore
Drive
A virtual experience of the technology of
tomorrow today - augmented reality makes it
possible: as part of a collaboration with Google,
Porsche has developed an augmented reality
app that shows the Mission E. Different
viewing modes allow the user to discover the
brand's first all-electric sports car digitally.
The app is for AR-capable smartphones with
the Android and iOS operating systems from
Google and Apple respectively, and is free
to download and use.
VR glasses and Porscheplatz app
In July and August of 2018, a pair of VR glasses
transported visitors to the Porsche Museum
back to the year 1948 and the village of
Gmünd, Austria. That is where the first Porsche
workshop was established 70 years ago. The
workshop and the surrounding areas were
reconstructed with painstaking attention to
detail as an virtual landscape experience. The
VR experience is the latest building block in
the digital experience concept in Zuffenhausen.
Also new is the Porscheplatz app: it is available
for free in German and English versions for
Android and Apple devices and includes all
information, activities and services relating
to the main production plant in Zuffenhausen,
as well as the audio guide for the museum.
A digital assistant answers questions.
Drive
As part of a collaboration
with Google, Porsche has
developed an augmented
reality app that shows
the Mission E. Different
viewing modes allow the
user to discover the
brand's first all-electric
sports car digitally.
1938 Professor Ferdinand Porsche and his
design office moved from central Stuttgart to
the building in Zuffenhausen. Since the early
1950s, the plant has served the sports car
manufacturer as its central administrative hub
- surrounded by the factory halls in which
Porsche builds its two-door sports cars. With
the start of production of the Taycan, Porsche
will begin the next chapter in its company
history at the Zuffenhausen location in 2019.
In the 2018 financial year, Porsche produced a
total of 268,691 sports cars, representing a
gain of roughly five per cent over the previous
year. The vehicles were from the model ranges
911, 718, Macan, Cayenne and Panamera.
The sports cars from the 911 (36,236 units),
718 Boxster (12,515 units) and 718 Cayman
(6,379 units) model ranges are manufactured
in Zuffenhausen. In addition, a further 4,764
units of the 718 Cayman were produced at the
multi-brand facility in Osnabrück.
117
In 2018, Porsche successfully managed four
production runs for new models: Cayenne,
911 GT3 RS, Macan and the eight generation
of the iconic 911 sports car.
car models, the main plant is abuzz with the
transition to the era of e-mobility. In the
reporting year, preparations for the production
start of the first all-electric drive sports car
from Porsche were proceeding full steam
ahead. The new production facilities for the
Taycan at the main plant are being erected
during ongoing operations.
The shift toward e-mobility is associated with
total investments to the tune of six billion
euros through 2022. Of that, some 700 million
euros will go exclusively to the construction of
the Taycan production facilities in Zuffenhausen.
And it is not just the main plant's existing
bodyshop that will be expanded. There will
also be a new paint shop, an electric motor and
component production facility and a new
assembly plant.
Under the heading Porsche Production 4.0, the
company is establishing a networked, trans-
parent and modern production apparatus. One
of the many innovations being introduced
with the production start of the new electric
Porsche is the Flexi-Line, in which the vehicles
are guided through the production process
by driverless automated guided vehicle (AGV)
systems. The systems operate without the
hall's double floor, which the traditional
assembly line, with its sliding plates, requires.
With the Flexi-Line, Porsche combines the
advantages of the classic assembly line princi-
ple with the advantages of flexible assembly.
This makes it possible not only to set up the
buildings much more variably than previously,
but also the production steps. That benefits
the ergonomics of the work stations as well as
the quality of the product and profitability.
Porsche is the first carmaker to employ this
groundbreaking production technology.
Porsche is hiring 1,200 new employees for
production of the Taycan. They have to be
acquired, qualified and integrated into the
workforce. A further 300 employees will be
added with the start of production of the
Mission E-based model, the Cross Turismo.
PRODUCTION IN ZUFFENHAUSEN
Engine construction, chassis production,
saddlery
For the V8 combustion engines used in the
Panamera and Cayenne model ranges,
Porsche has established an engine production
facility in Zuffenhausen. The production facility
for the electric motors for the Taycan is
located in the immediate vicinity. Chassis
production and the in-house saddlery also
moved into new spaces in the reporting year:
modern methods of material analysis and
efficient processing enable Porsche to work
responsibly with leather and better accom-
modate individual customer wishes.
01
118
PRODUCTION IN ZUFFENHAUSEN
Under the heading
Porsche Production 4.0,
the company is estab-
lishing a networked,
transparent and modern
production apparatus.
One of the many
innovations being
introduced with the
production start of the
new electric Porsche
is the Flexi-Line.
PRODUCTION IN LEIPZIG: MACAN
In addition to the traditional two-door sports
PRODUCTION IN LEIPZIG
Plug-in hybrids increasingly popular
Porsche ceased building vehicles with diesel
powertrains in February of 2018. Previously,
they had been assembled at the Leipzig and
Bratislava plants - with diesel engines
manufactured by the group. In September
2018, Porsche announced the official end
of the diesel versions of the Macan, Cayenne
and Panamera. At the same time, hybrid
models have become ever more popular.
SUSTAINABILITY
Zero Impact Factory
Porsche has firmly anchored its commitment
to sustainability in its production strategy,
pursuing its Zero Impact Factory objective. The
initiative is based on the environmentally con-
scious goal of achieving vehicle production -
including the entire value creation chain - with
no environmental footprint. The Zero Impact
Factory is a comprehensive concept encom-
passing numerous measures.
Green Logistics
In logistics, too, sustainable planning and
control were further advanced in the reporting.
year as part of the Green Logistics strategy.
The strategic approach is characterized by
across-the-board optimization. To minimize
the effects on the environment and ensure
that logistics processes are as sustainable as
possible, further measures and potential
improvements were identified, assessed and
implemented in 2018. In the process, Porsche
focussed on the fields of transport, storage
and energy consciousness.
In view of the increasing traffic volume in urban
areas, Porsche is also committed to playing
a significant role in avoiding emissions. In the
transport department, for example, additional
models were added during the reporting
year to the electric fleet already in use. At the
Zuffenhausen plant, a new electric lorry and
an additional e-hybrid one were put into service.
Furthermore, a new, electrically powered
transporter was used for courier trips between.
the locations. Through the use of these elec-
trically powered vehicles, the company is able
to save 71 tonnes of CO2 per year. With these
measures, Porsche is demonstrating its com-
mitment to further minimising the emissions
generated in logistics.
In the transport department, packaging and
filling capacities were reduced, which in turn
reduced the transport volume. This not only
reduced costs, but also led to reduced annual
CO2 emissions: 22 tonnes CO₂ at the
Zuffenhausen site and 26 tonnes of CO2 at
the Leipzig site.
Porsche was able to achieve further improve-
ments in terms of sustainability in the
transport of new vehicles. For example, models
destined for export are transported to the sea-
ports by train. As rail freight traffic is operated
solely with green electricity, logistics has been
able to save 6,194 tonnes of CO2₂ per year.
Performance - Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
119
Among the noteworthy events at the Porsche
Leipzig location was the production start of
the new Macan, which was enhanced across
the board in terms of design, comfort, connec-
tivity and driving dynamics. The first unit rolled
off the line in Leipzig in August. Introduced in
2014, with over 86,000 deliveries per year the
Macan has since become the most popular
model in the Porsche product range.
production facility
Investment in the future: Taycan
PORSCHE STUDIO BEIRUT
PRODUCTION IN ZUFFENHAUSEN
The 911 remains the heart of the product
line-up and plays a significant part in making
Porsche one of the most profitable carmakers
in the world. The venerable main plant in
Stuttgart-Zuffenhausen is another key compo-
nent in the company's success. With 250 units
rolling off the line each day, the plant is pro-
ducing more vehicles than ever before. A clever
control and production principle allows the
assembly of all two-door sports cars - the
911, 718 Boxster and 718 Cayman - on one
production line. Thanks to the highly flexible
production system, many customer customi-
zation wishes can be fulfilled at Zuffenhausen
as part of the series production process.
In the reporting year, one particular challenge
was not simply to build the numerous model
variants of the 718 and 911 model lines,
but also to ramp up production of the eighth
generation of the 911 as well. As a result, the
still-available variants of the predecessor
generation such as the 911 Turbo and the
911 GT models - were being assembled in
parallel with the new 911 models of type 992.
The sports cars from
the 911 (36,236 units),
718 Boxster (12,515
units) and 718 Cayman
(6,379 units) model
ranges are manufac-
tured in Zuffenhausen.
In addition, a further
4,764 units of the
718 Cayman were
produced at the
multi-brand facility
in Osnabrück.
PRODUCTION IN ZUFFENHAUSEN
116
250
Production volume
Vehicles
203,097
200
150
100
50
268,691
255,683
239,618
234,497
0
2014
2015 2016
2017
2018
SCAN
THIS CHART
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
Performance - Sales, Production, Procurement
At the Leipzig production location, a total of
129,446 vehicles of the Macan (93,953) and
Panamera (35,493 units) model ranges were
built. Added to this were 79,111 units of the
third generation of the Cayenne. The model is
produced at the Bratislava site (Slovakia). In
addition, the first pre-series Taycan rolled off
the production line (240 units) in Zuffenhausen.
PORSCHE STUDIO BEIRUT
PANAMERA
Performance Sales, Production, Procurement
Compared with their predecessor, the new
Panamera GTS models' standard equipment
package has been significantly upgraded in a
number of areas. The Sport Design package
with a new black front end, black trim at the
bottom of the rear, and a variety of darker ac-
cents highlights the more athletic appearance.
The GTS models are equipped with 20-inch
Panamera Design alloy wheels as standard.
The interior features hallmark elements of
black Alcantara and anodised aluminium. The
standard package also includes a heated multi-
function sports steering wheel with gearshift
paddles and Alcantara trim, and the Connect
Plus module offering a wide range of digital
services. With the optional GTS Interior pack-
age, drivers can customise their vehicle with
various design elements, such as a rev counter,
designer seams, and GTS logos in the contrast-
ing shades of Carmine Red or Chalk.
The GTS also features one highlight that is
new to the entire Panamera range - the
head-up display. Configured by the driver,
this display projects all relevant driving infor-
mation directly into the driver's line of sight
in full colour.
The new Porsche 911: stronger, faster
As part of a spectacular event in Los Angeles,
Porsche presented the latest generation 911.
The eighth generation of this Porsche icon
continues to set the standard in exclusive
sports car design: unmistakably committed to
the Porsche design DNA, with a much more
muscular look, and a completely new interior
featuring a 10.9-inch touchscreen monitor,
the new 911 is both timeless and contempo-
rary. Intelligent control and chassis elements
as well as innovative assistance systems
combine the superior, uncompromising dyna-
mism for which the classic rear-engine sports
car is renowned with the demands of the
digital world.
The next generation of flat-six turbocharged
engines has been further developed and is
more powerful than ever before, delivering
331 kW (450 hp) in the S models. This is an
increase of 22 kW (30 hp) compared with
the predecessor model. Both 911 models beat
the four-second mark for acceleration from
zero to 100 km/h: the rear-wheel-drive Coupé
needs 3.7 seconds and the 911 Carrera 4S
with all-wheel drive just 3.6 seconds. This
makes both cars 0.4 seconds faster than their
predecessor. This advantage is increased by
a further 0.2 seconds with the optional Sport
Chrono Package. The top speeds are now
308 km/h (911 Carrera S) and 306 km/h for
the all-wheel-drive version.
The exterior has been redesigned and under-
lines the performance leap of the new 911.
Above the large wheels with 20" diameter at
the front and 21" diameter at the rear, there
are significantly wider wheel arches. The rear
end is now the same width across all models,
highlighting the slimline centre section. At
the front, the body is 45 mm wider. The flush
integration of the electric pop-out handles
in the doors emphasises the smooth, tapered
side contour. Between the new LED head-
lights, a bonnet with a pronounced recess
evokes the design of early 911 generations.
The rear is dominated on all models by the sig-
nificantly wider, variable-position rear spoiler
and the seamless, elegant light bar. With the
exception of the front and rear sections, the
entire outer skin is now made from aluminium.
The completely new interior is characterised
by the clean, straight lines of the dashboard
with recessed instruments. The 911 models
from the 1970s provided the inspiration here.
Alongside the central rev counter - typical
for Porsche - two thin, frameless freeform
displays supply information to the driver. The
centre Porsche Communication Management
(PCM) screen is now 10.9 inches, and can
be operated quickly and without distraction
thanks to the new architecture. Located
underneath this screen is a compact switch
unit with five buttons for direct access to
important vehicle functions. In terms of digi-
talisation, the 911 takes the next step into
the future with permanent connectivity as well
as new functions and services. The standard
PCM module features include online navigation
based on swarm data as well as Porsche
Connect Plus.
In a world first, Porsche has developed wet
mode, included as standard. This function
detects water on the road, prepares the con-
trol systems accordingly and warns the driver,
who can then set up the vehicle for a parti-
cular emphasis on safety by simply pushing
a button or using the mode switch on the
steering wheel (Sport Chrono Package). The
camera-based warning and brake assist sys-
tem, also fitted as standard, detects the risk
of collision with other vehicles, pedestrians
or cyclists, and initiates a warning or emergency
braking if necessary. Night Vision Assist with
a thermal imaging camera is optionally availa-
ble for the 911 for the first time. The adaptive
cruise control option includes automatic
distance control, stop-and-go function and
reversible occupant protection.
THE NEW PORSCHE 911
The eighth generation of
this Porsche icon con-
tinues to set the standard
in exclusive sports car
design: unmistakably
committed to the Porsche
design DNA, with a much
more muscular look, and a
completely new interior
featuring a 10.9-inch
touchscreen monitor, the
new 911 is both timeless
and contemporary.
102
diameter at the front, 365 millimetres at the
rear) deliver exceptional deceleration.
PORSCHE 360+ APP
The Porsche 360+ with its central feature, a
personal lifestyle assistant, aims to take the
Porsche experience beyond the car itself and is
available to drivers 24/7. The aim is to make
everyday life easier, and to provide access to
exclusive experiences.
Porsche Impact is an emissions calculator,
which works out the financial contributions
that Porsche drivers can pay to offset their
carbon footprint. Drivers can choose which
internationally certified climate projects
to support. These are located right across
the world and are focused on wind energy,
hydropower and solar energy as well as the
protection of forests.
Performance Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
103
World première of the Porsche 911 GT2 RS
Clubsport
Alongside the new 911, the Porsche 911 GT2
RS Clubsport also celebrated its world première
at the Los Angeles Auto Show. Production of
this car, which can be driven at clubsport
events as well as selected motor racing meets,
is limited to 200 units. The technology of
the 515 kW (700 hp) strong racing car from
Weissach is based on the high-performance
sports car 911 GT2 RS - as is the case with
the 935 presented a few weeks earlier. Both
vehicles share the drive with the road equiva-
lent: a state-of-the-art 3.8-litre six-cylinder
boxer engine with biturbo charging. Power is
transferred to the rear-mounted engine via a
seven-speed Porsche dual-clutch transmission
(PDK) with rigid gearbox suspension at the
310-millimetre-wide rear axle. As with all other
racing versions of the 911, the driver changes
gears via ergonomically positioned shift pad-
dles on the steering wheel. The positioning of
the engine behind the rear axle ensures
excellent traction and braking performance.
Six-piston aluminium monobloc racing calli-
pers on the front axle in combination with
internally ventilated and grooved steel brake
discs with a 390-millimetre diameter provide
excellent deceleration at the front axle. The
rear axle is fitted with four-piston callipers and
380-millimetre discs.
Just like the road-legal 911 GT2 RS, the
1,390-kilogram Clubsport version is equipped
with PSM (Porsche Stability Management)
including traction control as well as an anti-
lock braking system (ABS). Thanks to a map
switch on the centre console, these assis-
tance systems can be adjusted separately or
switched off completely, depending on the
driving situation. The carbon steering wheel
and the colour display behind it in the 911 GT2
RS Clubsport are taken from the 911 GT3 R
of model year 2019. A massive roll cage in
combination with a racing bucket seat and
six-point belts ensures maximum safety. Air
conditioning provides optimal cooling of
the interior.
911 GT2 RS CLUBSPORT
New Macan S
Porsche has expanded its range of compact
SUVS with the addition of the powerful
Macan S. The new model from the sports car
manufacturer features a three-litre V6 turbo-
charged petrol engine. It delivers 260 kW
(354 hp) and has a maximum torque of
480 Nm, an increase of 10 kW (14 hp) and
20 Nm compared with the previous model.
With the optional Sport Chrono Package, the
new Macan S accelerates from zero to
100 km/h in just 5.1 seconds, an improve-
ment of 0.1 of a second. The car's top speed
is 254 km/h. Using the central turbo layout,
the turbocharger is located in the inner V; this
results in short exhaust gas paths between
the combustion chambers and the turbo-
charger, ensuring outstanding and immediate
responsiveness. The new twin-scroll turbo-
charger provides high torque at low engine
speeds. With twin-scroll technology, the ex-
haust gas flows are continuously fed to the
turbine wheel as separate streams, significantly
reducing any charge cycle disadvantages.
The refined combustion chamber geometry
with a central injector promotes efficient fuel
mixture formation. In addition to the increase
in the power output per litre, from 113 to
118 hp, the emissions have also been reduced.
Fuel consumption (NEDC-correlated) is
8.9 l/100 km.
As distinctively sporty as ever, the Macan's
chassis features staggered tyres and Porsche
Traction Management (PTM) all-wheel drive,
and has been overhauled and optimised once
New digital tools
With the launch of the new 911, Porsche is
also unveiling three exclusive digital tools.
Porsche Road Trip helps driving enthusiasts to
plan, organise and navigate trips that are just
that little bit special. The curated routes
feature exclusive recommendations for restau-
rants and hotels, while points of interest or
viewpoints are highlighted en route.
Mobil T
Designed to reflect the sporting prowess of
the Panamera GTS models, the chassis systems
are impressively dynamic. The adaptive air
suspension with three-chamber technology
is fitted as standard, which results in flexible
control and optimum spring rate spread. The
sports chassis in the two GTS models has been
lowered by ten millimetres, while the Porsche
Active Suspension Management (PASM)
function has been adapted for an even sportier
calibration. The result is outstanding lateral
dynamics. Large brakes (390 millimetres in
Two new GTS models: two athletes join the
Porsche Panamera family
The Speedster is the first car to be offered
with the new Heritage Design packages. This
accessory line by Porsche Exclusive allows
for an even higher degree of customisation.
In addition to the eye-catching paintwork,
21-inch centre lock wheels are another visual
highlight on both axles of this latest concept
study. Their cross-spoke wheel design draws
on the look of current-day Porsche racing cars
such as the 911 RSR and the GT3 R, while
the tinted daytime running lights also take their
inspiration from current motor sport trends.
These are red in this case to complement the
car's paintwork. The two "Talbot"-shaped
exterior mirrors as well as the fuel tank cap -
centrally positioned on the bonnet - are
designed in a gleaming black chrome and plat-
inum. The interior features partly perforated
black leather with red accents.
All body components as well as the entire
technology of both the 911 Speedster
Concept cars are identical. This includes the
shortened window frames with their lowered
cowl top panels and the smaller side windows
as well as the carbon-fibre rear bonnet with
the double-bubble cover behind the seats.
Both cars come with a lightweight Tonneau
cover, fitted by Tenax buttons, instead of a
convertible soft top.
The broad body of the concept car has been
borrowed from the 911 Carrera 4 Cabriolet,
although the concept's wings, front bonnet
and rear cover are made of lightweight carbon-
fibre composite material. The chassis has been
borrowed from the 911 GT3. The GT develop-
ers also contributed the exhaust system with
titanium tailpipes and the powertrain, which
includes a six-speed manual transmission.
This similarly applies to the centrepiece of this
strictly limited special model: the Speedster
Concept's flat-six boxer engine, which delivers
over 500 hp and revs up to 9,000 rpm.
911 SPEEDSTER CONCEPT
PORSCHE
PORSCHE
1949-2018
New Macan celebrates world premiere
Porsche launched its new Macan in Shanghai.
This compact SUV, which has enjoyed great
success since 2014, has been given a full
makeover, specifically as regards design, com-
fort, connectivity and driving dynamics.
The Macan remains the sporty flagship of its
segment. In keeping with Porsche's design
DNA, the new model features a three-dimen-
sional LED light panel on the rear of the vehicle.
LED technology will also be incorporated as
standard into the newly designed main head-
lights. The most striking innovations inside
are the new fully interconnected Porsche
Communication Management (PCM) module
with 10.9-inch touchscreen, the new-look air
vents and also the GT sports steering wheel,
famously associated with the 911. The PCM
provides access to new digital functions such
as intelligent voice control and online naviga-
tion, the latter coming as standard.
The list of options designed to enhance con-
venience has been extended to include a traffic
jam assistant, an air ioniser and a heated
windscreen. The new traffic assist system uses
adaptive cruise control to allow the vehicle
to travel at speeds of up to 60 km/h for a more
pleasant and relaxing drive. As well as being
able to accelerate and brake semi-automati-
cally, the system helps the driver to stay in
lane in traffic jams and poor-flowing traffic.
The Macan also comes fully interconnected
as standard thanks to the Connect Plus
module. This includes the Voice Pilot intelligent
voice control, real-time traffic information, a
connection to the Here Cloud with up-to-the-
minute swarm-based traffic data, and the new
Offroad Precision app, which documents and
analyses the offroad experience.
The optimised chassis showcases Macan's
exceptional status as a sports car in the
compact SUV segment. The fine tuning en-
sures greater neutrality with the same level of
driving stability and even greater comfort.
Newly developed tyres with improved perfor-
mance characteristics allow for even better
lateral dynamics and create an even more
enjoyable driving experience.
CAYMAN GT4 CLUBSPORT
Concept study: Cayman GT4 Clubsport
Fans were given a real treat at the ADAC Rallye
Deutschland when a very special course car,
the Porsche Cayman GT4 Clubsport, drove out
ahead of the starter field. For Porsche, the entry
of a concept study for the FIA R-GT category
based on the series-production GT circuit race
car was a critical test under real conditions.
The Cayman GT4 Clubsport is powered by
a 283 kW (385 hp) 3.8-litre flat-six boxer
engine. The vehicle features Porsche dual-
clutch transmission (PDK) with shift paddles
on the steering wheel. To cope with the rigours
of rallying, full underbody protection has been
fitted. An energy-absorbing foam element,
as used in WRC cars, has been mounted in
the doors.
Porsche added two extra-sporty models to its
Panamera range during the reporting year:
the Panamera GTS and, for the first time, the
Panamera GTS Sport Turismo - with a large
boot lid, low loading sill, increased luggage
compartment volume and 4+1 seating config-
uration. At the heart of both of the new
Panamera GTS models is a four-litre V8 engine
with 338 kW (460 hp) of output and maxi-
mum torque of 620 Nm, cultivating an emo-
tional sound and driving experience when
combined with the standard sports exhaust
system. The twin-turbo engine, which features
a gasoline particulate filter, outperforms its
predecessor by 15 kW (20 hp) and 100 Nm,
accelerating the Panamera GTS and Panamera
GTS Sport Turismo from zero to 100 km/h
in 4.1 seconds as it works in conjunction with
the standard Sport Chrono Package. The
two models achieve a top speed of 292 and
289 km/h respectively. There are no interrup-
tions in tractive force as power is transmitted
to the Porsche Traction Management (PTM)
all-wheel drive system by the eight-speed
PDK dual clutch gearbox.
New exclusive Porsche 935
The technology behind this racing car
designed for club sport events and private
racetrack training is based on the high-
performance 911 GT2 RS sports car. Like its
historic predecessor, most of the body has
been replaced or supplemented by carbon-
fibre composite parts (CFRP). With its stream-
lined extended rear, the 935 is 4.87 metres
long. The width of the exclusive clubsport
racer measures 2.03 metres.
The spectacular aerodynamics are a com-
pletely new development and a nod to the
Porsche 935/78 Le Mans race car, which fans
dubbed "Moby Dick" on account of its elon-
gated shape, massive fairings and white base
colour. The distinctive wheel arch air vents on
the front fairings, which also feature on the
GT3 customer sports vehicle 911 GT3 R,
increase downforce at the front axle.
Measuring 1,909 millimetres in width by
400 millimetres in depth, the rear wing
lends aerodynamic balance.
Many details of the exterior are a salute to
winning vehicles from the company's motor
racing history: the aerodynamically capped
rims echo those of the 935/78, with the LED
rear lights on the rear wing endplates adopted
from the 919 Hybrid LMP1 race car. The side
mirrors hail from the current Le Mans-winning
911 RSR, with the exposed titanium tailpipes
modelled on the Porsche 908 from 1968.
These references are carried through to the
cockpit. The knob on the gearshift lever has a
laminated wood design and is reminiscent of
racers such as the 917, the 909 Bergspyder
and the Carrera GT super sports car. The car-
bon steering wheel and colour display are
taken over by the 935 from the 911 GT3 R of
model year 2019. A massive safety cage in
combination with a racing bucket seat and six-
point belts ensures maximum safety. A second
seat on the passenger side is available as an
optional extra. Air conditioning provides opti-
mal cooling of the interior.
The new 935 is powered by a state-of-the-art
3.8-litre six-cylinder twin-turbo boxer engine,
which is largely identical to the high-perfor-
mance standard unit in the road-legal 911
GT2 RS. Power is transferred to the rear-
mounted engine via a seven-speed Porsche
dual-clutch transmission (PDK) with rigid gear-
box suspension at the 310-millimetre-wide
rear axle. As with the GT road models of the
911, the driver changes gears via conveniently
positioned shift paddles on the steering wheel.
The 911's typical weight distribution ensures
excellent traction and braking performance.
Six-piston aluminium monobloc racing calli-
pers on the front axle in combination with
internally ventilated and grooved steel brake
discs with a 380-millimetre diameter provide
excellent deceleration values at the front axle.
The rear axle is fitted with four-piston calli-
pers and 355-millimetre discs.
Like the road-legal 911 GT2 RS, the
1,380-kilogram 935 is equipped with PSM
(Porsche Stability Management) including
traction control as well as an anti-lock braking
system (ABS). Thanks to a map switch on
the centre console, these assistance systems
can be adjusted separately or switched off
completely, depending on the driving situation.
100
MACAN
NEW EXCLUSIVE PORSCHE 935
Performance Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
101
PANAMERA GTS AND PANAMERA GTS SPORT TURISMO
Porsche presented its new 935 model at the
Rennsport Reunion in 2018. Around 80,000
Porsche enthusiasts attended this historic
motorsport gathering at the Laguna Seca
Raceway in the USA, which provided the per-
fect backdrop for the unveiling of the 935.
The new 515 kW (700 hp) racing car has been
styled to look like its legendary predecessor,
the 935/78. The fact that the vehicle has not
been homologated means that the engineers
and designers were not bound by the usual
regulations and could give free rein to their
creativity. There will be a limited production
run of 77 units.
again as part of this model's facelift. On the
front axle, spring forks made from aluminium
replace the previous steel components.
The new alloy construction is more rigid and
reduces unsprung mass, making the steering
on the Macan more precise and improving
ride comfort. Newly tuned sway bars also
ensure more neutral handling.
A lot of detailed work has also gone into the
brakes of the new Macan S, and the driver will
notice this most of all in the form of a changed
pedal feel. The pedal in question weighs
around 300 g less than the previous steel part,
and acts on the brake master cylinder via a
shortened lever arm. This results in a more
immediate brake response, and the driver can
also feel a very precise pressure point thanks
to the firm connection. The even more sporty
approach in the new Macan S is reflected in
the larger front brake discs, with disc diameter
increased by 10 mm to 360 mm, and disc
thickness up by 2 mm to 36 mm. The new
brake pads are copper-free. The Macan S can
be fitted with the optional Porsche Ceramic
Composite Brake (PCCB). The Macan S also
benefits from all the innovations introduced
during the latest facelift, including a three-
dimensional rear LED lightbar, and the new
fully connected Porsche Communication
Management (PCM) system, which features
a 10.9-inch interior touchscreen.
For the 15th time, Auto Bild and vehicle
rating firm Schwacke declared their "value
champions". In 13 vehicle segments, the sales
prices of all used cars sold in Germany were
compared and the model that best retained its
value determined in each segment. With a
depreciation of just 33.5 per cent within the
first four years, the 911 GT3 won the title as
the car with the best value retention in Germany
in 2018. In total, Porsche scored three class
wins: in addition to the 911, the Panamera 4
won in the luxury class and the Macan Turbo
PDK in the SUV class. The 911 was also
successful in the TÜV Report for used cars.
It became the first vehicle ever to emerge as
the overall victor in all five age classes.
718 BOXSTER
911 GT3
108
S.GO 6021
In addition to the
"Brand Image Award-
Best Performance
Luxury Brand", the
company also received
the "Best Resale Value -
Luxury Brand" award.
S.GT 9912
Performance Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
109
In June 2018, the first
fast charging park with
Porsche Turbo Charging
started operation at
the Berlin-Adlershof site.
With its 800-volt
technology developed
by Porsche Engineering,
the system enables
extremely fast charging
of electric vehicles.
Charging infrastructure for
the "Best Cars 2018" list for the second year
running. The Panamera again took top honours
in the luxury class.
Porsche Turbo Charging
Digital charging service for electric vehicles
With the Porsche Charging Service, the sports
car manufacturer has offered an online plat-
form since June 2018 that covers all charging
procedures for plug-in hybrid and electric
vehicles. The innovative service searches for
suitable charging stations and takes care of
the invoicing by using centrally stored payment
details, in any country or currency. This obvi-
ates the need to register with all the different
providers. A free app and the Porsche naviga-
tion system direct customers to the selected
charging pedestal. Using the app, information
concerning the location and availability of
charging pedestals as well as the price of one
charging process can be called up in real time.
At the charging pedestal, identification is
carried out either by using a QR code with the
app, or with the Porsche ID Card, which users
receive free of charge after registering for
the service.
Aftersales: professional service
The Aftersales department also undertook
intensive preparations for the market launch
of the Taycan and the associated charging
infrastructure in the reporting year. Repair pro-
cedures were developed, spare parts defined
and new logistics concepts promoted for
the electrically powered sports car. Porsche
has also developed solutions for the safe ship-
ments and proper storage of the Taycan bat-
teries. Moreover, workshop personnel world-
wide will be familiarised with the innovative
technologies of the electric vehicle on the basis
of newly developed qualification concepts.
In close collaboration with the other Sales
departments and Development, Porsche has
forged ahead with the series production-
readiness of the charging technology to enable
fast and convenient charging at home as
well. The use of various "over-the-air" (OTA)
services, which vehicles can use to receive
software updates and the like wirelessly, have
also been prepared. To optimise the mainte-
nance and repair work on all models, Porsche
launched a pilot project for the use of aug-
mented reality in the workshop. In the future, a
tablet computer will visualise complex repair
procedures step-by-step on a real vehicle that
is actually present: in the vehicle image cap-
tured by the tablet camera, the system will use
augmented reality to display, for example,
where a part being searched for is located, or
how a screw connection should be unfastened.
A revised feedback system establishes the
prerequisites necessary for service and work-
shop employees to work in an efficient and
customer-oriented manner, even in times of
rapid growth and technological change.
Expansion of the worldwide sales network
The Porsche Studios are dedicated to creating
a comprehensive brand experience. With
this innovative sales format, the sports car
manufacturer is addressing new target groups
directly in their urban living environments.
In centrally located spaces, Porsche is show-
casing its complete range of services. The
focus is on the personal encounter and the
emotional brand experience. After being
launched in 2017 with "Porsche in Sylt" and
the "Porsche Studio Guangzhou" in China, four
further locations were added in 2018. The
"Porsche Studio Beirut" has ensured a stronger
presence in the Middle East since January
2018, and the "Porsche Studio Cape Town"
was opened in July 2018. The special highlight
of both locations is the platform used to show-
case the sports cars, which is reminiscent
of the fashion industry. Sounds and fragrances
augment the visual experience and activate
all the senses. In Cape Town there is also a
spacious lounge area with a café. Fascinating
sports cars and exclusive lifestyle products
under a single roof - this enticing combination
has been offered by Porsche and its subsidiary
Porsche Design in Milan since June 2018.
Centrally located in the fashion capital, the
Porsche Studio in Milan is the first in which
both Porsche vehicles and the complete collec-
tion from Porsche Design are being presented
together. A month later, the second Porsche
Studio in China opened in Ningbo. It is situated
amid high-class residential properties and in
the immediate vicinity of the most important
shopping mall in the new city centre.
PORSCHE STUDIO MAILAND
After being launched in
2017 with "Porsche in
Sylt" and the "Porsche
Studio Guangzhou"
in China, four further
locations were added
in 2018. The "Porsche
Studio Beirut" has
ensured a stronger
presence in the Middle
East since January 2018,
and the "Porsche Studio
Cape Town" was opened
in July 2018.
110
As preparations for the production start of the
Taycan are under way at the main production
plant in Zuffenhausen, Porsche is preparing its
worldwide dealer organisation for the estab-
lishment of a charging infrastructure. In June
2018, the first fast charging park with Porsche
Turbo Charging started operation at the
Berlin-Adlershof site. With its 800-volt tech-
nology developed by Porsche Engineering,
the system enables extremely fast charging of
electric vehicles. A modular Flexbox system
also factors in the available input voltage, visi-
tor frequency and space constraints. Economic
viability and user-friendly design are brought
together in a well-conceived charging solution
that will help e-mobility gain acceptance.
The module range also includes a Charge Box,
which is used when the available mains con-
nection is not powerful enough. In addition to
the power unit, the box contains an additional
buffer battery. This buffer battery is charged
when no vehicle is using the charging pedestal
- a process that can also be carried out at
the dealer's using a solar power system. The
storage battery makes it possible to provide
the customer with high output for a fast
charging procedure in spite of a weak grid.
Training for the use of the new charging
technology for the installation partners of the
international dealer organisation has been
under way since 2018. The foundations for a
charging infrastructure in the Porsche dealer
organisation have already been in place since
the introduction of the first plug-in hybrid
models in 2013. It is now possible to build on
that experience. Since the decision to move
forward with series production of the Taycan,
the existing knowledge base is being expanded
systematically.
In Germany, readers of the trade magazine
auto motor und sport voted the 911 Carrera
and the 911 Cabriolet into first place in the
sports car and convertible categories of
CAYENNE
MACAN
A lot of detailed work
has also gone into the
brakes of the new
Macan S, and the driver
will notice this most
of all in the form of a
changed pedal feel.
The pedal in question
weighs around 300 g
less than the previous
steel part, and acts
on the brake master
cylinder via a shortened
lever arm.
MACAN S
5-606227
718 T
Puristic design: 718T
With the 718 T, Porsche has transferred the
puristic design of the 911 T launched back in
1968 to its line of two-seater sports cars.
The new model in the Boxster and Cayman
ranges combines the 220 kW (300 PS) turbo.
four-cylinder boxer engine with a particularly
emotional Porsche driving experience. The
high-performance character of the T models is
emphasised by an extensive equipment pack-
age, which includes 20-inch alloy wheels, the
PASM sports chassis lowered by 20 millime-
tres - which is being offered in combination
with the 2.0-litre turbocharged engine for the
first time in this line - the shortened gearshift,
on which the gears are emblazoned in red,
and the Sport Chrono Package. These features
can only be enjoyed in combination with the
basic engine in the 718 T. Porsche is offering
the 718 T with six-speed gearbox and Porsche
Torque Vectoring (PTV), including mechanical
rear axle differential locking. Porsche dual-
clutch transmission (PDK) is also available as
an option.
Traditionally, "T" stands for "Touring" in Porsche
models, and is synonymous with driving pleas-
ure in its purest form. The 718 T will be most
at home on winding country roads, offering the
joy of dynamic driving as its ultimate goal.
The two-seater accommodates this philosophy
through a pared down range of features. These
include black door pulls in the door panels,
as well as sports seats with electric two-way
adjustment, black Sport-Tex centre sections,
and the embroidered "718" logo on the head-
rests. The Porsche Communication Manage-
ment (PCM) module has also been replaced by
a large storage compartment, though buyers
who do not wish to forgo the entertainment
system may order it at no extra charge. Put
together, these measures balance out the
additional weight of the newly added gasoline
particulate filter (GPF).
The exterior of the Porsche 718 T is character-
ised by its muscular appearance. With
20-inch alloy wheels painted in high-gloss
titanium grey, combined with the PASM sports
chassis with 20-millimetre lowered body, it
simply looks outstanding on the road. Agate
grey mirror shells and "718 Boxster T" or
"718 Cayman T" logos on the sides identify
the particular model, which can also be
distinguished from the rear by the centrally
positioned sports exhaust with black, chrome-
plated twin tailpipes. In terms of exterior
colours, buyers can choose from black, Indian
Red, Racing Yellow and white, as well as
the metallic colours Carrara White, Deep Black
and GT Silver. Porsche is also offering Lava
Orange and Miami Blue as special colours.
104
Performance Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
105
Sales, Production, Procurement
Sales
Production
Procurement
PORSCHE
SALES
High customer satisfaction
Customer orientation and customer satisfac-
tion are two of the core objectives of the
Porsche Strategy 2025. They are key prerequi-
sites for value-creating growth. Porsche
continuously measures the satisfaction of
more than 250,000 customers annually
through sales and service processes. Addition-
ally, independent external studies are also
used to enable comparisons with competitors.
The result of these surveys are continually
analysed by a team of experts from Sales,
Aftersales, Marketing, Customer Relations and
Product Quality. When necessary, the internal
Customer Satisfaction Steering Committee,
which includes the Board of Management,
sets forth measures to improve quality. Porsche
regularly conveys to its employees how
important satisfied customers are to the com-
pany - in the context of theme days, among
other occasions.
"Excite!" initiative
In the reporting year, Porsche concentrated on
enhancing its customer orientation around
the world. As part of the initiative, the company
launched a series of measures to make pro-
cesses, programmes, tasks and functions
more customer-focussed. Employees were
also encouraged to give greater consideration
to the topic of customer orientation. One
example of that is the "Excite! - Empowering
Customer Centricity" initiative, which was
launched as a pilot project across the entire
sales organisation of Porsche Cars North
America in 2018. In workshops and coaching
sessions, employees, investors and executive
managers were prepared to commit to a
strategic objective: to delight customers with
an unmatched product and brand experience -
as defined in the Porsche Strategy 2025. This
goal is achieved through a resolute focus on
the wishes and needs of the customer. Fulfill-
ing those wishes and needs is the principal
aim the "moment of truth" - each time per-
sonal contact is made with the customer. The
programme will be launched successively in
further markets - in each case tailored to the
specific requirements. There will also be
measures put in place to anchor customer
orientation in the company culture.
Recognition and awards
Numerous trade magazines and independent
studies in the US and the UK have confirmed
the positive impact of the customer service
measures. The US consumer magazine
Kelley Blue Book, for instance, handed Porsche
multiple awards in the reporting year: in
addition to the "Brand Image Award - Best
Performance Luxury Brand", the company was
also named the "Best Resale Value - Luxury
Brand". Moreover, the 911, Macan, Panamera
and 718 Cayman models each took top hon-
ours for best resale value in their respective
segments. The 718 Boxster received the "Best
Buy Award" in the "Performance Car" category.
And the Panamera won the "5-Year Cost to
Own Award - High-End Luxury Car". Readers
of the US car magazine Car and Driver selected
the 718 Boxster and the 718 Cayman among
their ten best cars.
911
In the "Automotive Performance, Execution
and Layout Study" (APEAL) by the US market
research company J.D. Power, the Cayenne
took first place in the "Midsize Premium SUV"
category in 2018 for the second year in a row.
In another J.D. Power survey, the "Sales
Satisfaction Index" (SSI), the company was
named the "Best Brand". Both studies were
based on representative surveys of new
vehicle owners. The news magazine U.S. News
& World Report put Porsche in first place in its
list of "Top 10 Best Luxury Car Brands". The
brand led the best-vehicle rankings with five
first-place honours: with the 911 in the
"Luxury Sports Car" and "Luxury Convertibles"
categories and the Cayenne in the "Luxury
Crossover SUVs", "Hybrid SUVs", and "2-Row
and 3-Row SUVs" categories. The assessment
of the vehicles and brands was based on study
data and the perceptions of experts in the
automotive industry. The US motor racing
magazine Autocar named the 718 Boxster the
best convertible of the year in 2018. The
911 GT3 bested ten competitors and headed
up the list of "Best Hardcore Sports Cars".
Porsche scored another first place with the
911 Carrera in the best sports cars ranking.
The 911 GT2 RS took the "Motor Week
Driver's Choice Award 2018" in the "Best
Dream Machine" category.
718 CAYMAN
PORSCHE CHARGING SERVICE
Porsche marked the 70th anniversary of its
sports cars in a particularly apt way: the 911
Speedster Concept is a road-ready study of an
open-top and particularly exciting sports car.
Sure to please the purists, the 911 Speedster
Concept reflects the Porsche brand essence
with precise clarity, placing the pure driving
experience at its heart. The heritage model of
the 911 Speedster Concept was unveiled to
the public at the official "70 years of Porsche
sports cars" celebrations in Zuffenhausen. In
October the company then decided to produce
a strictly limited run of just 1,948 units of the
open-top two-seater in 2019.
The Speedster Concept: open-top, pure and
with over 500 hp
17
Financial data
133
Performance - Financial analysis
132
2015 2016 2017 2018
2014
0
3,404
3,877
4,144
4,289
1
2
2,719
3
Operating profit (EBIT)
€ million
4
Financial result
Profit before tax
130
Performance - Financial analysis
131
Operating profit amounted to € 4,289 million,
Consolidated income statement
an increase of € 145 million in comparison
with the previous year.
The healthy cost structure and the sustainably
high earnings power of the Group are also
reflected in the key performance indicators.
The Porsche AG Group generated an operating
return on sales of 16.6 per cent in the past
financial year (previous year: 17.6 per cent). The
pre-tax return on sales amounted to 17.7 per
cent (previous year: 17.2 per cent). The return
on capital, defined as the ratio of the operating
result after tax to the average invested assets
of the Automobile sub-group, amounted to
24.5 per cent (previous year: 28.2 per cent).
The return on equity after tax was 19.7 per
cent (previous year: 22.2 per cent).
Operating profit
amounted to € 4,289
million, an increase
of € 145 million in
comparison with the
previous year.
5
The financial result amounted to € 263 million
(prior year: €-98 million). The increase in
the financial result was due on the one hand
to higher gains from fair value measurement
relating principally to exchange rate and inter-
est rate hedging transactions that are not
included in hedge accounting. On the other
hand, the financial result was boosted by shift-
ing recognition of the fair value component
of currency hedges from the financial result to
the operating result in fiscal year 2018 (initial
application of IFRS 9 - Financial Instruments).
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Financial result
Profit before tax
Income tax income/expense
Current
Deferred
Profit after tax
Other financial result
thereof profit attributable to shareholders
Profit transferred to Porsche Holding Stuttgart GmbH
11 The prior-year figures were restated due to the initial application of new accounting standards
"IFRS 9 - Financial Instruments" and "IFRS 15 - Revenue from Contracts with Customers".
2018
20171)
25,784
- 18,629
thereof profit attributable to non-controlling interests
Other operating expenses
Operating profit
Interest expenses
Share of profit or loss of equity-accounted investments
Consolidated statement of changes in equity
Value added statement
136
Consolidated income statement
of Porsche AG for the period 1 January to 31 December 2018
€ million
Interest income
Sales revenue
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
Cost of sales
Other operating income
Administrative expenses
Cost of sales
Gross profit
Distribution expenses
At Porsche, responsible environmental conduct
and use of resources is firmly anchored in
the corporate strategy and regulated through
guidelines. In 2018, a variety of measures
were implemented with a view to promoting a
responsible approach to these issues. Further-
more, activities in the area of environmental
protection also yield economic benefits. One
concrete example of this is shortened hot tests
on test benches, which result in fuel savings.
The optimisation of test benches and systems
itself makes a valuable contribution to re-
ducing emissions. One example has been the
retrofitting of an exhaust gas removal system
for welding fumes generated during servicing
with new, controllable fans. The new technology
enables continuous operation with just half
the energy required previously. This amounts
to savings of over 441,000 kWh per year at
the same maximum extraction level. And it is
not just the environment that benefits from
the optimised system - it also improves work-
ing conditions at the location.
Porsche saves resources in many ways
For the storage of parts
and vehicles, Porsche
Leipzig has employed
resource-conserving
procedures and sys-
tems. One example of
this is the automated
small-parts storage
system installed at the
Leipzig plant in 2018,
with some 54,000
spaces for storage
containers. Through
energy-saving shuttle
technology, annual
CO₂ emissions are
reduced by 40 per cent
(676 tonnes) compared
For the production of the 911, 718 Boxster
and Cayman, Macan, Cayenne and Panamera,
Porsche has been using 100 per cent green
energy from renewable sources for the past two
years. A biogas power plant at the Zuffenhausen
location will be added to the environmentally
friendly portfolio. The municipal plant will
generate electricity from the fermentation of
bio-waste, optimising the energy mix.
production of vehicles. The Taycan will show
the way forward: production of the model at
the Zuffenhausen location will be completely
CO2-neutral.
Porsche is aiming to achieve CO2-neutral
CLIMATE-NEUTRAL TRANSPORT TO SHIPPING PORTS
CO2-neutrality in production
To more firmly entrench this comprehensive
approach, a Green Logistics training program
was developed. The goal of the training
programme is to foster a greater understand-
ing of sustainable logistics processes among
the workforce. The web-based application
For the storage of parts and vehicles, Porsche
Leipzig has employed resource-conserving
procedures and systems. One example of this
is the automated small-parts storage system
installed at the Leipzig plant in 2018, with
some 54,000 spaces for storage containers.
Through energy-saving shuttle technology,
annual CO₂ emissions are reduced by 40 per
cent (676 tonnes) compared to conventional
small-parts storage systems. Through improved
lorry capacity utilisation, delivery frequencies
can be substantially reduced, resulting in further
CO₂ reduction potential.
1
-98
-1
4,552
is accessible to all Porsche employees via the
learning platform and takes roughly 30 min-
utes. Moreover, the training course also
promotes transparency with regard to current
projects in the field of sustainable logistics.
18
Avoid, reduce, offset: keeping CO₂ emissions
in mind at all times
AUTOMATED SMALL-PARTS STORAGE SYSTEM
Model start-ups
In 2018, the material outlays of Porsche AG
amounted to 4,201 million euros (financial
year 2017: 4,985 million euros). Procurement
also played a substantial role in helping the
company meet its objectives in terms of ser-
vices and non-production materials as well.
In terms of investments, their volume totalled
1,858 million euros in the year under review.
The growth compared to financial year 2017
(1,684 million euros) was due primarily to the
large number of infrastructure projects geared
toward securing continued growth and future
competitiveness of the company.
As in recent years, material cost per vehicle
was further optimised in the reporting year.
Drawing on the strength of close cooperative
relationships, Porsche involved its business
partners in the optimisation process at an
early stage by holding product and cost work-
shops. This approach allowed substantial
improvements to be achieved.
Procurement of production material and
non-production material
For the future, Porsche aims to make greater
use of strategic partnerships. As part of that
shift, conventional contracts will no longer
be the only form of collaboration with suppliers.
Porsche will also secure sustainable access
to innovative technologies and products by
means of new, intelligent partnership models
that are already in the works. Digitalisation
also played a major role in the reporting year.
Procurement pursued innovative ideas to create
a series of new apps that were ultimately used
across different departments.
In 2018, Porsche once again increased the
number of new vehicle deliveries to a total
of 256,255 vehicles. Procurement made a
significant contribution to this success: based
on a very close partnership relationship with
the supplier industry, it ensured a reliable
supply of high-quality components for the
long term. In the reporting year, Procurement
focussed particularly on strategically impor-
tant products and topics relating to optimising
the value chain. The supplier network was
able to be further intensified and collaboration
across company boundaries increased.
Since late November, Porsche has offered
customers its Porsche Impact emissions
calculator. This enables customers to monitor
and offset their mileage- and vehicle-specific
CO₂ footprint. Based on their yearly mileage,
the customer determines their corresponding
CO2 output level. At the same time, the
customer receives information concerning the
financial contribution with which they can
offset their CO₂ emissions. Porsche Impact
is also used in-house: since the end of Novem-
ber 2018, all CO2 emissions of the entire
company fleet have been offset. The effort
covers almost 6,100 vehicles - including the
motor racing models. For a Cayenne company
car of the current model line with a yearly
mileage of 15,000 kilometres, for example, the
total comes to 62.70 euros per year.
PROCUREMENT
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance - Sales, Production, Procurement
PRODUCTION IN LEIPZIG
parts storage systems.
to conventional small-
120
121
23,491
-16,688
4,046
Income tax income/expense
In absolute terms, the cost of sales rose by
€ 1,941 million or 12 per cent. This slightly
disproportionate increase is due to higher
research and development costs recognized
in the income statement. The capitalization
ratio for research and development costs
amounted to 49 per cent (prior year: 58 per
cent). The slightly disproportionate increase
in cost of sales caused the gross margin to
decrease from 29 to 28 per cent.
Distribution expenses rose from € 1,856 mil-
lion to € 1,901 million due to the higher unit
sales. Administrative expenses also increased
slightly, from € 1,028 million to € 1,103 mil-
lion. In relation to sales revenue, distribution
expenses decreased slightly to 7 per cent
(prior year: 8 per cent), while administrative
expenses remained level at 4 per cent (prior
year: 4 per cent).
The personnel expenses across all functions of
the Porsche AG Group increased from € 3,200
million to € 3,613 million. The growth in
personnel expenses is primarily due to the rise
in the average number of employees during
the year by 2,058 to 31,091.
Depreciation, amortization and impairment
across the functions increased to € 2,567 mil-
lion compared with € 2,276 million in the
prior year. This primarily relates to the depre-
ciation, amortization and impairment of
capitalized development costs and property,
plant and equipment.
€ 16,688 million), which represents 72 per
cent of sales revenue (prior year: 71 per cent).
Other operating income decreased from
€ 1,142 million to € 813 million. This was
primarily due to changes in the presentation
of gains on currency hedges. From 2018
lion to € 675 million. As with other operating
income, the decrease in other operating
expenses is due to changes in the presentation
of losses on currency hedges.
Results of operations
of the Porsche AG Group
€ million
Sales revenue
onwards these are recognized in sales revenue
due to the initial application of IFRS 9. Other
operating expenses declined from € 917 mil-
17
revenue to € 18,629 million (prior year:
Consolidated revenue at the Porsche AG Group
amounted to € 25,784 million in the reporting
period (prior year: € 23,491 million). The
Porsche AG Group sold 243,054 new vehicles
in the past fiscal year. This corresponds to an
increase in unit sales of 2 per cent compared
with the prior year. The primary contribution
to the growth in sales volume and revenue
was made by the Cayenne model line, which
recorded an increase of 13,440 to 70,146
new vehicles. The Macan remains the best-
selling model line, with 82,244 new vehicles
sold. However, a change of model caused
unit sales to decrease by 13,296 new vehicles
in the fiscal year. In regional terms, China
remained the largest market, with new vehicle
sales totaling 79,370 units. Unit sales grew by
12 per cent there in the fiscal year. In addition,
the North American market recorded growth
this year, with unit sales of 66,801. This corre-
sponds to 3 per cent growth in unit sales.
-
- 1,434
6
-1,030
-4
Profit after tax
The cost of sales increased in line with
3,118
3,016
13
13
1) The prior-year figures were restated due to the initial application of new accounting standards "IFRS 9 - Financial Instruments"
and "IFRS 15 - Revenue from Contracts with Customers".
RESULTS OF OPERATIONS
The Porsche AG Group's profit after tax in-
creased by € 102 million from € 3,016 million
in the corresponding prior-year period to
€3,118 million in the current fiscal year. The
tax rate in the reporting period was 32 per
cent (prior year: 25 per cent).
12
For Procurement, the production start-ups of
the new 911 and the Macan successor were
the main focus in the reporting year. Prepara-
tions for making a start on e-mobility with the
Taycan in 2019 were also well under way.
Procurement also purchased a multitude of
parts for all new products and led the vehicles
- hand-in-glove with Development, Quality
Assurance, Production and suppliers - to
production maturity. Beyond the ongoing
improvements to the vehicles, increasing digi-
talisation and connectivity also played an
important role. This resulted in new tasks for
the Procurement department.
Strategy 2025
7,155
- 1,901
- 1,103
-235
68
-235
68
0
0
-235
68
53
34
0
0
°s
3
-22
50
34
- 12
Other comprehensive income, before tax
Other comprehensive income, net of tax
Total comprehensive income
thereof profit attributable to shareholders
Deferred taxes relating to other comprehensive income
thereof profit attributable to non-controlling interests
- 283
11 The prior-year figures were restated due to the initial application of new accounting standard
"IFRS 9 - Financial Instruments".
2018
20171)
3,118
3,016
46
72
Performance - Financial data
1,771
-458
- 152
997
- 1,107
1,596
354
-546
-753
-787
1,050
4,066
2,360
4,066
5
0
139
2,365
Items that may be reclassified subsequently to profit or loss
-0
96
-741
1,619
223
-483
-518
1,136
0
-664
184
- 480
137
143
-41
- 337
137
Share of other comprehensive income of equity-accounted investments that may be
reclassified subsequently to profit or loss, net of tax
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss, net of tax
Deferred taxes relating to fair value evaluation of securities and receivables (debt instruments)
recognized on other comprehensive income
4,552
4,046
- 1,434
- 1,030
1,427
- 1,234
-98
-7
3,118
3,016
3,113
3,016
5
0
204
2,290
263
-56
-1,856
- 1,028
813
1,142
- 675
-917
-429
4,289
3
4
408
395
-92
-68
4,144
6,803
-2,157
137
Fair value changes recognized in other comprehensive income (OCI I)
Transferred to profit or loss (OCI I)
Cash flow hedges (OCI I), before tax
Deferred taxes relating to cash flow hedges (OCI I)
Cash flow hedges (OCI I), net of tax
Fair value changes recognized in other comprehensive income (OCI II)
Hedging
Transferred to profit or loss (OCI II)
Deferred taxes relating to cash flow hedges (OCI II)
Cash flow hedges (OCI II), net of tax
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss
Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss, before tax
Cash flow hedges (OCI II), before tax
Performance - Financial data
Exchange differences on translating foreign operations, net of tax
Exchange differences on translating foreign operations, before tax
138
Consolidated statement of comprehensive income
of Porsche AG for the period 1 January to 31 December 2018
€ million
Profit after tax
Pension plan remeasurements recognized in other comprehensive income
Deferred taxes relating to exchange differences on translating foreign operations
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income
Fair value valuation of other participations and securities (equity instruments) that will not be
reclassified to profit or loss, net of tax
Share of other comprehensive income of equity-accounted investments that will not be
reclassified to profit or loss, net of tax
Items that will not be reclassified to profit or loss
Exchange differences on translating foreign operations
Unrealized currency translation gains/losses
Transferred to profit or loss
Pension plan remeasurements recognized in other comprehensive income, net of tax
Procurement derives four strategic objectives
from the Porsche Strategy 2025 and global
trends in the markets. First: top quality at
competitive conditions by means of pro-active
design of technical and environmental inno-
vations. Second: efficiency throughout the
entire service life of the products. Third: relia-
bility based on continuous availability and
consistently high quality of purchased parts as
well as stable, efficient flows of goods. Fourth:
increasing attractiveness as an employer for
talented young prospects, and ensuring high
job satisfaction among the workforce by
creating optimal working conditions.
As part of the strategic initiative, Procurement
implemented a series of projects in the report-
ing year. The exchange of information with
suppliers was further intensified and the com-
mitment to sustainability more firmly anchored
in the supply chain. Procurement marketing
was also expanded in order to generate interest
in the complex field among students, recent
graduates and professionals. This included
collaborations with universities such as the
University of Mannheim. The practice allows
Porsche employees to gain new insights into
specific topics, while students get a better
sense of the company's work through excur-
sions, presentations and practical experience.
9,084
26
96
0
82
1,951
5
1,841
Financial liabilities
2,215
6
1,770
Trade payables
3,134
8
3,048
Other financial assets ¹)
10,735
31
12,017
84
0
93
110
Tax payables 1)
3
1,087
Other liabilities
3,060
9
3,441
850
26
9,665
1
778
Other provisions
10
3,792
Provisions for pensions and similar obligations
43
Deferred tax liabilities
Financial liabilities
15,200
16,477
Equity
Equity and Liabilities
126
1) The prior-year figures were restated.
Current liabilities
43
31
18
10
399
1
402
0
119
1
3,828
215
0221
3,687
614
799
3,466
0220
11
38,159
100
35,019
6,803
28
7,155
-71
-16,688
- 72
29
18,629
23,491
100
25,784
in %
20171)
in%
100
2018
- 1,901
-1,856
4,289
-4
-917
3
-675
5
-7
1,142
813
-4
- 1,028
- 4
- 1,103
-8
3
Other provisions
129
Performance - Financial analysis
the Porsche AG Group
Consolidated revenue at
The net available liquidity of the Automobile
sub-group-i.e., its gross liquidity less finan-
cial liabilities and excluding the financial ser-
vices business in each case - improved from
€ 2,231 million as of 31 December 2017 to
€ 2,306 million as of 31 December 2018.
€ 1,312 million) made by Porsche Holding
Stuttgart GmbH.
Payments made in respect of profit transfer
and dividends resulted in a cash outflow of
€2,157 million (prior year: € 2,371 million).
This was partly offset by capital contributions
amounting to € 1,208 million (prior year:
There was a change in cash flows from financ-
ing activities from € -744 million in the prior
year to € -606 million in the current fiscal year.
for the current reporting
period amounted to
€25,784 million, following
resulted in a cash outflow of € 3,566 million in
the reporting period following €3,140 million
in the prior year. Investments in intangible
assets (excluding capitalized development
costs) and property, plant and equipment in-
creased from € 1,762 million in the previous
year to € 2,093 million in the period under
review. Additions to capitalized development
costs amounted to € 1,064 million following
€ 1,337 million in fiscal year 2017.
Cash flows from operating activities amounted
to € 3,845 million in the 2018 reporting period
following € 4,069 million in the prior year.
The material effects resulted from increased
profit and higher depreciation, amortization
and write-downs on the one hand, and higher
income tax payments, non-cash income and
expenses and higher outflows for inventories
on the other.
FINANCIAL POSITION
127
Performance - Financial analysis
819 lololololololo
100
The cash flows from investing activities
SCAN
THIS CHART
€ 23,491 million in the
prior year.
Sales revenue
2015 2016 2017 2018
2014
0
21,533
22,318
23,491
25
25,784
5
10
15
17,205
20
€ million
128
Provisions for taxes
Other liabilities
Non-current liabilities
Other financial liabilities
Other financial assets
4
1,417
5
1,656
Financial services receivables
8,398
10
10
3,776
Leased assets
0
59
0
3,455
98
22
25
10
3,889
72
25,247
71
27,008
8,903
1
2
730
1
153
0
125
370
759
Other equity investments
341
123
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance - Sales, Production, Procurement
122
Porsche Procurement strictly enforces supplier
compliance with all requirements in relation
to sustainability. In the reporting year, a
concept was developed to ensure aspects of
sustainability are already incorporated and
factored into the tendering process. In addition
to the existing contract award ratings for
quality, development and logistics, Porsche
will also soon introduce a sustainability rating
for all suppliers. The business partners have
already been informed of this new requirement.
This additional step will allow potential risks in
the supply chain to be avoided before deciding
which business partner to choose. Suppliers
that fail to adequately fulfil the sustainability
requirements will be asked to implement
pro-active improvement measures to ensure
they remain in the running as potential
business partners.
Sustainability rating
Financial analysis
Workshops on the subject of sustainability
Sustainability plays a very important role in
the supply chain as well - and its importance
continues to grow. Procurement has been
grappling with all aspects of the subject quite
intensively for some time now, and has imple-
mented multiple strategic projects in the field.
For example, in the reporting year, Porsche
developed a new concept for supplier work-
shops to further intensify the exchange with
business partners on the topic of sustainability.
Working together, approaches to implement-
ing different aspects of sustainability were
identified and potential areas for further collab-
oration defined. Supplier audits to ensure
compliance with sustainability requirements
are already being carried out. They are the
foundation for long-term partnerships.
at the Development Centre in Weissach.
In the run-up to Innovation Day as well, which
was dedicated to the theme of "well-being in
a Porsche vehicle", the Procurement, Develop-
ment and Sales departments contacted a
targeted group of suppliers and start-ups and
asked them to submit their new developments
as part of an open innovation approach. The
more than 200 innovation ideas that were
submitted were evaluated by interdisciplinary
teams at Porsche. Ultimately 60 "well-being
innovations" were selected for presentation by
suppliers and start-ups from around the world
The "Porsche Supplier Innovation Days" provide
the framework for integrating groundbreaking
concepts from suppliers into the company's
operations as quickly as possible. The Procure-
ment and Development Innovation Manage-
ment team invited suppliers to engage with
the theme of "alternative materials and light-
weight construction" in the reporting year:
selected suppliers presented their innovative
production concepts to Porsche experts from
a variety of specialist disciplines.
Porsche operates in an environment that is
shaped by rapid change. The advance of globali-
sation, demanding customers, intensified
competition for time and knowledge, opposing
modes of thinking and working in the IT and
automotive industries are just a few of the
challenges facing the company. To identify
trends and developments in good time, Porsche
also continually sources new ideas from the
supplier sector.
Innovation management
In 2018, Porsche once
again increased the
number of new vehicle
deliveries to a total of
more than 256,255
vehicles. Procurement
made a significant
contribution to this
success: based on a very
close partnership
relationship with the
supplier industry, it
ensured a reliable supply
of high-quality compo-
nents for the long term.
At "Porsche Supplier Tech Day", the sports car
manufacturer was a guest at the home of
the world's second-largest automotive sup-
plier, ZF Friedrichshafen AG. The Innovation
Management team at Procurement and
Chassis Pre-Development invited participants
to attend presentations and technical talks
and share experiences. Subject: What are the
latest innovations by the Porsche suppliers
and how can Porsche implement them? The
highly promising series of "Porsche Supplier
Innovation Days" will be expanded further
in the future.
1
Net assets
Results of operations
1
368
17
5,903
18
6,928
Financial position
Property, plant and equipment
Equity-accounted investments
4,646
13
4,929
in %
in% Dec. 31, 2017
Dec. 31, 2018
13
4,144
730
2,292
Provisions for pensions and similar obligations
increased by € 326 million, mainly due to a
the prior-year figure of 26 per cent.
€ 581 million to € 9,665 million in comparison
with the prior year. As of the end of the fiscal
year, non-current liabilities expressed as a
percentage of total capital remained level with
Non-current liabilities relate to financial liabi-
lities, pension provisions, deferred income
tax liabilities, other financial liabilities, other
liabilities, and other provisions. They rose by
The equity of the Porsche AG Group increased
by € 1,277 million to € 16,477 million com-
pared with the prior-year reporting date, and
includes an offsetting effect in the total
amount of € 7 million due to the initial applica-
tion of new accounting standards IFRS 9 and
IFRS 15. The profit after tax, remeasurements
from pension plans net of tax, profit transfer
and dividends of € 785 million together with
currency translation differences of € 68 million
and a capital contribution by Porsche Holding
Stuttgart GmbH amounting to € 1,208 million
generated increases in equity. By contrast,
the € 782 million change in the hedge reserve
after tax was recognized as a decrease
in equity.
Cash, cash equivalents and time deposits
decreased by € 432 million year on year to
€ 2,635 million.
rise in the number of eligible employees.
Current other financial assets increased by
€ 451 million to € 2,292 million. The increase
mainly relates to the clearing account with
Porsche Holding Stuttgart GmbH, receivables
from loans to VW Group companies, and
receivables from allocations to the consolidat-
ed VAT group in the amount of € 569 million.
By contrast, the marking-to-market of deriva-
tive financial instruments resulted in a
decrease of € 150 million.
Non-current and current receivables from
As a percentage of total assets, current assets
amounted to 29 per cent compared with
28 per cent in the prior year. Inventories
increased from € 3,051 million in the prior
year to € 3,889 million at the end of the
reporting period.
Deferred income tax assets amounted to
€ 730 million as against € 370 million in the
prior year.
Non-current other financial assets decreased
by € 505 million to € 8,398 million. The de-
crease was due to the marking-to-market of
derivative financial instruments.
Fixed assets expressed as a percentage of
total assets increased to 42 per cent (prior
year: 41 per cent). Intangible assets increased
from € 4,646 million to € 4,929 million. The
increase relates on the one hand to capitalized
development costs, with the largest additions
concerning the 911 and Taycan model lines. On
the other hand, additions to acquired licenses
and advanced payments made also caused an
increase. Property, plant and equipment
increased in comparison with the prior year by
€ 1,025 million to € 6,928 million, primarily
due to additions to land and buildings, furni-
ture and fixtures, as well as advance payments
made and assets under construction. These
additions consist mainly of tools and construc-
tion work for the new generations of vehicles.
Leased assets increased by € 321 million in
comparison with the prior year, to € 3,776
million. This item contains vehicles leased to
customers under operating leases.
At the end of the reporting period, the fixed
assets of the Porsche AG Group - i.e., the
intangible assets, property, plant and equip-
ment, leased assets, equity-accounted
investments and other financial assets -
amounted to € 16,099 million, compared with
€ 14,404 million in the previous fiscal year.
financial services rose from € 2,095 million to
€2,386 million. This item mainly comprises
receivables from finance leases and receiva-
bles from customer and dealer financing.
Non-current assets increased by € 1,761 mil-
lion to € 27,008 million. The increase primarily
related to fixed assets and deferred taxes,
while other financial assets in particular saw a
decline. Non-current assets expressed as a
percentage of total assets amounted to 71 per
cent (prior year: 72 per cent).
Non-current other financial liabilities recorded
growth of € 96 million. This increase relates
mainly to the marking-to-market of derivative
financial instruments.
€ 650 million compared with € 614 million
in the prior year.
Financial services receivables
Trade receivables
Inventories
Other receivables
Deferred tax assets
Non-current assets
Intangible assets
Assets
Deferred income tax liabilities amounted to
€ million
Net assets
Current other financial liabilities amounted to
€ 3,441 million (prior year: € 3,060 million).
This was primarily due to the change resulting
from the marking-to-market of derivative
financial instruments (€ 159 million) and a
€ 133 million increase in the profit transfer
liability to Porsche Holding Stuttgart GmbH.
Trade payables increased to € 3,134 million
after € 3,048 million in the previous year.
This increase is attributable to higher volumes
of investments and business.
Non-current and current financial liabilities
rose from € 5,457 million to € 6,043 million.
The increase primarily resulted from refinanc-
ing the financial services business in the form
of asset-backed securities and bank loans.
263
Current liabilities increased from € 10,735
million to € 12,017 million, while expressed
as a percentage of total capital they remained
unchanged against 31 December 2017,
of the Porsche AG Group
Other financial assets
As of 31 December 2018, the total assets
of the Porsche AG Group stood at € 38,159
million, 9 per cent higher than on the prior-
year reporting date.
100
1
297
Securities
51
429
1
62
1,841
3,051
593
022670
81
Tax receivables
468
Other receivables
678
NET ASSETS
0225700
1
35,019
100
38,159
28
9,772
29
9
11,151
9
3,067
7
2,635
Cash, cash equivalents and time deposits
0
Current assets
650
at 31 per cent as of the end of the fiscal year.
177
3
804
4,096
10,245
45
Unadjusted balance at 1 Jan. 2018
15,200
0
0
46
831
4,023
10,245
45
As of 31 December 2017
Other changes
-2,158
-2,157
Profit transfer and dividends payment
1,312
1,312
4,066
0
0
96
0
0
15,200
Changes in accounting policy to reflect IFRS 9
Total comprehensive income
-753
0
0
-337
-518
68
34
Other comprehensive income, net of tax
3,118
5
3,113
1,136
Profit after tax
0
0
46
831
4,019
10,245
45
Balance at 1 Jan. 2018
0
46
27
-77
15,193
3,147
-235
1,050
Capital increases/ decreases
Disposal of equity instruments
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at 1 Jan. 2017
Changes in accounting policy to reflect IFRS 9
Unadjusted balance at 1 Jan. 2017
Total equity
interests
Equity-accounted Non-controlling
investments
Other reserves
Equity and debt
instruments
hedging (OCI II)
Cash flow hedges Deferred costs of
(OCI I)
Currency
translation
Retained earnings
Capital reserves
Subscribed
capital
Hedging
of Porsche AG for the period 1 January to 31 December 2018
Consolidated statement of changes in equity
€ million
143
Performance - Financial data
45
8,933
3,064
242
0
0
96
1,136
-235
50
3,016
0
3,016
11,980
1
0
3,066
0
-305
242
3,114
8,933
45
-50
50
11,980
1
0
0
-305
-50
68
-518
-337
270
6.2%
449
10.1%
842
to the Company (reserves)
2.0%
135
1.2%
87
1.5%
123
to creditors (interest expense)
16.4%
1,106
18.1%
1,298
17.7%
1,473
to the state (taxes, duties)
42.5%
2,875
3,200 44.5%
3,613 43.3%
to employees (wages, salaries, benefits)
4.0%
8,341
100%
7,191
Vehicles
918 Spyder
246,375
256,255
35,573
Vehicles
911
Vehicles
Total
2016
2017
2018
Deliveries
35.1%
The key figures concerning suppliers relate to Porsche AG.
Key economic figures
Key figures for personnel and social matters
Key figures for environment and energy
Key economic figures
Key figures
147
Performance - Financial data
1) The prior-year figures were restated due to the initial application of new accounting
standards "IFRS 9 - Financial Instruments" and "IFRS 15 - Revenue from Contracts
with Customers".
Valued added
100%
6,756
100%
The key figures concerning deliveries and production relate to the Porsche Group
(including subsidiaries).
2,370
30.0%
2,157
Value added statement
146
145
Performance - Financial data
144
16,477
-291
313
75
4,876
11,453
45
of Porsche AG for the period 1 January to 31 December 2018
1
-2,290
-2,290
1,208
1,208
As of 31 December 2018
Other changes
Profit transfer and dividends payment
Capital increases/ decreases
Disposal of equity instruments
2,365
5
0
0
142
Source of funds in € million
Cost of materials
2,290 27.4%
2016
20171)
2018
to shareholders (profit transfer)
Appropriation of funds in € million
6,756
7,191
8,341
-2,089
- 1,301
-41
Sales revenue
Other income
-2,081
-2,567
-12,623
-13,665
- 15,658
1,231
22,318
23,491
942
25,784
823
2016
20171)
2018
Depreciation and amortisation
Other upfront expenditures
Value added
-2,276
32,197
7
1) The prior-year figures were restated due to the initial application of new accounting standard
"IFRS 9 - Financial Instruments".
3,410
Equity
0
6
Non-controlling interests
15,200
16,471
Equity before non-controlling interests
887
4,023
4,876
97
Other reserves 1)
Retained earnings 1
10,245
45
45
11,453
Capital reserves
Subscribed capital
Equity and Liabilities
35,019
202
38,159
9,772
11,151
Current assets
3,067
16,477
15,200
Provisions for pensions and similar obligations
3,792
96
9,084
9,665
399
402
Current liabilities
Tax payables ¹)
Other liabilities
Other financial assets ¹)
Other provisions
Financial liabilities
Trade payables
Provisions for taxes
Non-current liabilities
2,635
Other liabilities
215
Other financial liabilities
3,687
3,828
Financial liabilities
614
650
Deferred tax liabilities
799
778
Other provisions
3,466
119
82
Cash, cash equivalents and time deposits
297
1,417
1,656
Other financial assets
Financial services receivables
59
98
341
368
3,455
3,776
5,903
6,928
4,646
4,929
Other equity investments
Equity-accounted investments
Property, plant and equipment
Leased assets
Intangible assets
Assets
31 Dec. 2017
31 Dec. 2018
€ million
of Porsche AG as of 31 December 2018
Consolidated statement of financial position
140
8,398
8,903
Other receivables
Deferred tax assets
Securities
51
81
Tax receivables
429
468
Other receivables
1,841
2,292
Other financial assets
678
730
62
593
3,051
3,889
25,247
27,008
370
730
153
125
Financial services receivables
Trade receivables
Inventories
Non-current assets
759
1,951
1,841
2,215
Profit transfer and dividends
Proceeds from issuance of bonds
Repayment of bonds
Capital contributions
Cash flows from investing activities
-91
- 111
Change in loans and time deposits
1
-237
57
10
-8
-71
- 1,337
1,064
-1,762
- 2,093
Change in investments in securities
Cash received from disposal of intangible assets and property, plant and equipment
Change in equity investments
Additions to capitalized development costs
and property, plant and equipment
Investments in intangible assets (excluding capitalized development costs),
4,069
3,845
Cash flows from operating activities
Change in other financial liabilities
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
425
775
Securities, loans and time deposits
Gross liquidity
2,960
2,635
Cash and cash equivalents at end of period
2,960
2,635
185
-327
-59
2
-199
-744
38
-606
-2,173
- 2,422
2,513
2,727
-2,371
- 2,157
1,312
1,208
-3,140
-3,566
Cash and cash equivalents at end of period
-25
- 239
- 1,230
940
4,046
4,552
2,834
2,960
Cash and cash equivalents at beginning of period
Profit before tax
20171)
2018
€ million
of Porsche AG for the period 1 January to 31 December 2018
Consolidated statement of cash flows
141
Performance - Financial data
Income taxes paid
35,019
1) The prior-year figures were restated.
10,735
12,017
84
93
850
1,087
3,060
3,441
3,048
3,134
1,770
38,159
3,385
Depreciation, amortization and impairment losses
Gain/loss on disposal of non-current assets
Change in inventories
349
81
326
371
710
504
-577
505
-651
- 851
83
-214
Other non-cash expense/income
4
Share of profit or loss of equity-accounted investments
25
46
2,276
2,567
- 1,093
- 1,531
Change in leased assets
Change in other provisions
Change in pension provisions
Change in liabilities (excluding financial liabilities)
Change in receivables (excluding financial services)
4
237,778
32,365
44
Change in financial services receivables
Vehicles
40,920
Total number of participants
279
N/A
868
974
N/A
741
814
2016
2017
2018 ¹)
Training programme participants
N/A
1,403
1,494
N/A
26,506
28,764
3,994
4,148
4,252
2) Employee turnover is not broken down by age group, gender and region. These figures are not essential to us as they are not relevant for management.
The key figure is also calculated without including fixed-term employment contracts, employees entering into receipt of pensions and semi-retired workers.
27,612
16,241
29,777
17,549
19,909
21,798
259
N/A
2,872
17,363
24,460
5,317
5,944
26,381
SCAN
THIS CHART
2016
2017
2018
1) Increase in the participant numbers due to the launch of a digital learning platform,
and the intensification of digital learning modules.
9.3%
6.9%
14.6%
19,032
Employees exempt from wage agreements and executive employees
93.1%
85.4%
Employees subject to wage agreements
Distribution of participants by employee category
18,337
16,451
33,111
Male
3,461
3,458
7,809
Female
90.7%
Number of accidents, lost days and fatalities 1)
32,325
0,60%
Total workforce 1)
to Porsche AG and Porsche Leipzig GmbH. A detailed overview of the key figures can be found in the Porsche Newsroom:
www.newsroom.porsche.com/reports
Unless specified otherwise, the key figures shown below concerning personnel and social matters relate in principle
Key figures for personnel and social matters
154
153
Performance - Key figures
sites are factored into the calculation.
1) Investments made at the Stuttgart-Zuffenhausen, Weissach and Leipzig
47%
20.48
66%
25.72
64%
25.73
Prevention
18%
7.84
11%
4.27
7%
2.94
Remedy costs
25%
10.89
Porsche Group (including subsidiaries)
of which Porsche AG 2)
of which Porsche Leipzig GmbH 2)
Region: Germany
1,20%
1,30%
2016
2017
2018
Employee turnover 1) 2)
2016
2017
2018
Proportion of foreign employees 1)
2) Due to the equal payment and attractive framework conditions, the number of temporary
employees has not been reported separately.
1) As of 2017, this figure relates to the entire Porsche AG Group.
1) As of 2017, this figure relates to the entire Porsche AG Group.
Employees exempt from wage agreements and executive employees
Employees by type of employment 2)
Male
Female
Employees by gender
Employee structure 1)
(Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
2) The specified employee figures are based on reports by region
1) As of 2017, this figure relates to the entire Porsche AG Group.
Other regions (Australia, Latin America)
Region: Asia
Region: North America
Region: Europe (excluding Germany)
Employees subject to wage agreements
2018
2017
2016
5.5
5.1
5.8
5.9
Porsche Leipzig GmbH
Porsche AG
1) We do not report on minorities, as we are not permitted to collect this data due to personality rights.
0.8%
0.7%
12.2%
12.7%
12.9%
0.6%
Porsche Leipzig GmbH
Porsche AG
2016
2017
2018
2016
2017
2018
1) It is not possible to report on employees from temporary employment agencies and external companies, or independent contractors.
2) Non-serious injuries resulting from minor accidents are not included in the report. Accidents not resulting in lost days (calendar days) count as minor accidents.
3) Working days are counted as lost days (usually Mo-Fr); the day of the accident is not included (≥ 1 lost calendar day).
SCAN
THIS CHART
☐ s
1,957
1
1,708
0
0
6.7
6.3
1) Injury rate = Accident frequency index: provides information on frequency of accidents occurring in the workplace in relation to the total of all hours worked.
The calculation formula is based on the number of industrial accidents x 1 million hours / hours worked.
Donations made in € million
718 Boxster/Cayman
Lawyer
Dr Hans Michel Piëch
Chairman of the General and Group Works Council of Dr. Ing. h.c. F. Porsche AG
Chairman of the Zuffenhausen/Ludwigsburg/Sachsenheim Works Council
Deputy Chairman of the Works Council of Porsche Automobil Holding SE
Deputy Chairman
Uwe Hück*
Chairman
Dr Wolfgang Porsche
Diplom-Kaufmann
on 31 December 2018
of Dr. Ing. h.c. F. Porsche AG
The Supervisory Board
Porsche AG Group - Brief overview
Fatalities
About this report
Emission and consumption information
The Supervisory Board
Further information
155
Approx. 5.0
Approx. 4.8
Approx. 27.5
2016
2017
20181)
Performance - Key figures
1) Of this, external donations totalling 22 million euros in foundation assets for
the Ferry Porsche Foundation, which was established in 2018.
GRI Content Index
1,923
2,578
Lost days 3)
Deputy chairman of the Group Works Council and
Member of the General Works Council of Dr. Ing. h.c. F. Porsche AG
Member of the Zuffenhausen/Ludwigsburg/Sachsenheim Works Council
Sabine Zach*
Collective Bargaining Secretary at IG Metall
District management Berlin - Brandenburg - Saxony
Manfred Pache*
Member of the Group Works Council of Dr. Ing. h.c. F. Porsche AG
Member of the Weissach Works Council
Hansjörg Schmierer*
Manager responsible for members and finances of the IG Metall trade union, Stuttgart
Jordana Vogiatzi*
Antonio Girone*
Press officer for the IG Metall trade union - Stuttgart Administrative Office
Head of Drivetrain Division at Porsche Engineering Services GmbH
Werner Weresch*
Deputy chairman of the Group Works Council and
Member of the General Works Council of Dr. Ing. h.c. F. Porsche AG
Head of shop stewards' committee
Deputy chairman of the Zuffenhausen/Ludwigsburg/Sachsenheim Works Council
1) Until 30 November 2018
*Employee representative
158
Performance -Further information
159
Accidents 2)
Axel Weyland*
16%
Head of Sales Planning at Dr. Ing. h.c. F. Porsche AG
Departmental Manager of Human Resources, Management and Production
3,866
4,105
18,312
25,911
28,220
171
Dr Ferdinand Oliver Porsche
Investment management
Hans-Peter Porsche
Engineer
Hans Dieter Pötsch
Diplom-Wirtschaftsingenieur
Chairman of the Executive Board of Porsche Automobil Holding SE
Wolfgang von Dühren*
Chairman of the Supervisory Board of Volkswagen AG
Member of the Executive Board of Volkswagen AG
with responsibility for "Human Resources"
Andreas Renschler
Member of the Executive Board of Volkswagen AG
with responsibility for "Truck & Bus"
Frank Witter
Member of the Executive Board of Volkswagen AG
with responsibility for "Finances and IT"
Hiltrud Dorothea Werner
Member of the Executive Board of Volkswagen AG
with responsibility for "Integrity and Legal"
Dr Hans-Peter Schützinger
Member of the Board of Management of Porsche Holding GmbH
Peter Schulz*¹)
Gunnar Kilian
6.26
Injury rates¹)
7.12
Basis of consolidation
240
Vehicles
14,218
37,605
35,493
Vehicles
1) Pre-production vehicles.
Taycan 1)
Panamera
100%
100%
100%
Supplier screening based on environmental criteria
Proportion of screened suppliers
71,693
59,068
79,111
Vehicles
Cayenne
97,177
98,763
93,953
Vehicles
Macan
24,882
(GRI 102-45)
Since 1 August 2012, Volkswagen AG has been the sole shareholder of Porsche Holding Stuttgart GmbH, which holds 100 per cent
of the share capital in Porsche AG. Dependency agreements and profit transfer agreements exist between Porsche Holding Stuttgart
GmbH and Porsche AG, as well as between Porsche AG and its major domestic subsidiaries. The basis of consolidation at Porsche AG
includes a total of 111 fully consolidated companies, with 26 headquartered in Germany and 85 abroad.
150
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Direct GHG emissions in t CO2 equivalent (Scope 1)
34,184
3,213
3,155
Other sites
N/A
14,752
14,500
Development site
129,975
45,557
45,548
26,427
Production sites
63,522
63,203
Direct and indirect GHG emissions in t CO₂ equivalent
Total
2016
2017
2018
Emissions in t
The calculation and reporting method was subject to ongoing development in 2018.
A detailed description of the key figures can be found in the Porsche Newsroom:
https://newsroom.porsche.com/reports
Key figures for environment and energy
152
151
Performance-Key figures
164,159
56,862
23,658
718 Boxster/Cayman
Suppliers of non-production materials
Based in the EU
95.8%
Suppliers of production materials
Supplier origin 20181)
Production
15,240
27,942
38,443
Vehicles
Panamera
70,867
63,913
71,458
Vehicles
Cayenne
95,642
97,202
86,031
Vehicles
Macan
23,620
25,114
18%
24,750
98.1%
1) Based on the creditor's billing address.
4.2%
Based outside the EU
31,648
33,820
36,236
Vehicles
911
2016
2017
2018
239,618
255,683
268,691
Vehicles
Vehicles
Total
2016
2017
2018
98%
98%
97%
Expenditure for local suppliers at main business sites ¹)
Proportion of allocated purchasing budget spent on local suppliers
2016
2017
2018
Based outside the EU
1.9%
1) Suppliers are considered to be local if they are based in the EU.
Zuffenhausen and Leipzig are considered the main business sites.
57,117
Based in the EU
Indirect GHG emissions in t CO2 equivalent (Scope 2)
23,154
2016
20171)
2018
617,752
542,217
644,173
561,332
684,832
606,175
2016
2017
2018
SCAN
THIS CHART
1) The published key figures for 2017 have been partially corrected.
Waste for disposal
Waste for recycling
Total
Volume of waste in t
Water consumption (drinking water)
Volume of waste water
Fresh water and waste water in m³
3) The NOx emissions shown here refer exclusively to production processes,
and not to Porsche vehicles.
2) The emissions indicated relate only to business trips, i.e. made by train (Porsche AG only),
plane and rental car.
1) The calculation method has been further developed for 2017, and the key figures for
2016 adjusted in line with this method.
2,607
THIS CHART
SCAN
1) Production sites only
22,788
21,171
21,573
21,088
Emissions control
10%
53,928
4.36
7%
2.84
11%
4.63
Waste disposal
100%
43.57
100%
2016
39.09
40.42
3,008
2016
2017
2018
Investments in environmental protection € millions
2,485
SCAN
THIS CHART
1,859
1,690
1,581
19,312
100%
2017
Total 1)
Energy consumption in KWh per vehicle 1)
Total
0.3
0.28
116.93
125.29
0.11
0.12
Weight of dust emissions
124.33
Weight of volatile organic compounds (VOC)
2016
0.41
0.41
SOx emissions
Production sites
2017
Direct energy consumption according to primary energy sources in MWh 1)
45.01
38.96
NOx emissions 3)
49,023
54,338
58.491
6,342
6,405
2018
Other indirect GHG emissions (Scope 3) 1) 2)
110,231
2018
Development site
39.25
Fuel (in litres)
63,350
Other sites
1) Indirect energy consumption comprises electrical energy, district heating,
CHP plants and PV arrays.
N/A
59,418
64,424
Development site
296,873
233,523
339,200
268,346
Production sites
Total
12,114
353,726
277,188
2017
1) The direct energy consumption is comprised of gas, combustible gas for manufacturing processes,
heating oil, special energy products and fuel.
11,436
306,692
229,354
61,926
2016
304,111
225,218
62,556
3,054
1,540,403
1,649
1,552,452
N/A
64,603
1,385,573
Indirect energy consumption according to primary energy sources in MWh ¹)
2018
293,623
217,104
Other sites
→ Text
44, 48-49, 57
→ Text
116-121, 152
→ Key figures
→ Key figures
152
153
→ Key figures
119-121, 153
→ Key figures
Information
not available
121, 153
44, 48-49, 54-56
→ Key figures
→ Key figures
153
Index/Key figures
GRI 403: Occupational Health
and Safety (2016)
Management Approach (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
403-1 Workers representation formal joint management-worker
health and safety committees
GRI 401: Employment (2016)
Staff development
→ Key figures
GRI 103:
Management Approach (2016)
GRI 103:
Management Approach (2016)
GRI 404:
Training and Education (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
401-1 New employee hires and employee turnover
401-3 Parental leave
403-2 Types of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related fatalities
403-3 Workers with high incidence or high risk of diseases related
to their occupation
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
404-1 Average hours of training per year per employee
404-2 Programs for upgrading employee skills and transition
assistance programs
GRI 103:
GRI 402: Labor/Management
Relations (2016)
GRI 407: Freedom of Association
and Collective Bargaining
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
402-1 Minimum notice periods regarding operational changes
407-1 Operations and suppliers in which the right to freedom
of association and collective bargaining may be at risk
Disclosure
Occupational health and safety
GRI 103:
Management Approach (2016)
Corporate co-determination
44, 48-49, 57
Printed report
57, 153
57, 153
Omission
44, 48-49, 58-61
→ Text
→ Index
58-61, 155 Index/Key figures
58-61,73-74
→ Index/Text
(For details
see p. 153)
Information
Online version
not available
(For details
see p. 153)
Report contents and period
(GRI 102-46, 102-48, 102-50,
102-51, 102-52)
This documentation represents the third time
that Dr. Ing. h.c. F. Porsche AG has published
a combined Annual and Sustainability Report.
The company published its first report in this
format for the 2016 financial year on 17 March
2017. The report is produced annually. This
report covers the period from 1 January 2018
to 31 December 2018. Information dating
from before this period is also included for
completeness. Unless otherwise specified,
the reporting date is 31 December 2018. The
editorial deadline was in February 2019.
Unless otherwise indicated, all information
refers to Dr. Ing. h.c. F. Porsche AG. If content
that had been previously published has since
been corrected, for example due to changes
in collection methods for key figures and data,
this is indicated. Financial analyses as well
as key figures and data are given in compact
form at the end of the report and in detailed
form online in the Porsche Newsroom
(newsroom.porsche.com). This site also con-
tains further information on Porsche's sustain-
ability work. Management approaches to
major topics in this report are contained
in the section entitled "Sustainability strategy
and management".
Reporting standard and assurance
(GRI 102-49, 102-54, 102-55, 102-56)
This report and the information on Porsche's
commitment to sustainability have been
authored in accordance and compliance with
the Core option of the Global Reporting
Initiative (GRI) standards for sustainability
reporting. Previous reports used the G3.1 and
G4 guidelines which were current for those
points at the time. The GRI Content Index at
the end of the report shows the extent to
which the indicators have been met and where
they are located in the print and online ver-
sions. The GRI Materiality Disclosures Service
confirmed that the GRI requirements for
materiality disclosures have been met. The
information and key figures were not the
subject of a full external audit in 2018.
Separate non-financial consolidated report
Dr. Ing. h.c. F. Porsche AG makes use of the
exemption provision in Sections 289b (2) and
315b (2) of the German Commercial Code
("HGB") allowing it not to issue a non-financial
report and a non-financial consolidated
report, and refers to the separate non-financial
report of Volkswagen AG for the financial
year 2018, which will be available on the
www.volkswagenag.com website in German
and English from 30 April 2019.
Performance -Further information
165
Attractiveness as an employer
166
Porsche AG Group
About this report
→ Text
→ Index
44,60
→ Key figures
Index/Key figures
57, 153
→ Key figures
Index
44, 48-49,57
→ Text
121, 153
→ Key figures
44, 48-49, 58-61
→ Text
→ Index/Text
58-61, 64-75, 154-155
→ Key figures
44, 48-49, 58-61
→ Text
58-61,64-75,155
→ Text/Key figures
64-75
→ Text
44, 48-49, 58-61
→ Text
→ Text/Key figures
305-3 Other indirect GHG emissions (Scope 3)
44, 48-49, 54-56
306-3 Significant spills
→ Index
151
→ Key figures
44, 48-49, 50-53
→ Text
→ Index
52-53
→ Key figures
→ Index
→ Index
44, 48-49, 50-53
→ Text
→ Text
54
→ Text
44, 48-49, 54-56
→ Text
Information
not available
→ Index/Text
51-52, 123
→ Index/Text
51-52, 123
Performance -Further information
Brief overview
Printed report
Online version
Omission
44, 48-49, 50-53
→ Text
35,126-147,155, 167
→ Index
121, 153
44, 48-49, 50-53
44, 48-49, 50-53
→ Index
Restricted due to
obligation to main-
tain confidentiality
(for further details
see online index)
→ Text
151
→ Index/Key figures
51-52, 123,151
→ Text/Key figures
→ Text
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
→ Key figures
163
GRI 305: Emissions (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
302-1 Energy consumption within the organisation
302-3 Energy intensity
305-1 Direct GHG emissions (Scope 1)
305-2 Energy indirect GHG emissions (Scope 2)
305-3 Other indirect GHG emissions (Scope 3)
305-4 GHG emissions intensity
305-6 Emissions of ozone-depleting substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur oxides (SOX) and other
significant air emissions
Resource consumption
during production
GRI 103:
Management Approach (2016)
GRI 303: Water (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
303-1 Water withdrawal by source
306-1 Water discharge by quality and destination
GRI 306: Effluents and Waste (2016) 306-2 Waste by type and disposal method
Environmentally compatible logistics
GRI 103:
Management Approach (2016)
GRI 305: Emissions (2016)
GRI 302: Energy (2016)
Management Approach (2016)
GRI 103:
during production
164
Key topics
Disclosure
Printed report
Online version
Omission
Key topics
Material and sustainable materials
GRI 103:
(For details
see p. 153)
Management Approach (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
301-1 Materials used by weight or volume
44, 48-49, 54-56
→ Text
122, 151
→ Key figures
New mobility concepts
GRI 103:
Management Approach (2016)
Energy and emissions
GRI 301: Materials (2016)
2018
Operating result (EBIT)
2016
Profit before tax 4)
€ million
4,552
4,046
3,697
Profit after tax4)
€ million
3,118
3,016
2,640
1) Pre-production vehicles.
2) As of 31 December.
3) Relates to investments in intangible assets and property, plant and equipment.
4) The prior-year figures (FY 2017) were restated due to the initial application
of new accounting standard "IFRS 9 - Financial Instruments".
Porsche Newsroom provides more information and an interactive comparison of current financial and volume data.
By selecting various parameters such as time period, key figure type or display type, you can generate and save
individual comparisons in different formats.
www.newsroom.porsche.com/charts
Performance -Further information
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
3,877
4,144
4,289
€ million
Capital expenditure 3)
€ million
3,157
3,099
2,666
Cost of materials
€ million
15,658
13,665
SCAN
THIS PAGE
12,623
€ million
2,567
2,276
2,081
Cash flows from operating activities
€ million
3,845
4,069
3,864
Depreciation, amortization and impairment losses
12,841
167
Publisher
Rolf Antrecht
Meiré und Meiré
Art direction, editorial and digital design
Meiré und Meiré
Porsche Newsroom App
Storming GmbH
Interactive key performance indicator tool
C3 Creative Code and Content GmbH
Printing
Druckstudio GmbH
Paper
Fedrigoni Symbol Matt Plus
www.newsroom.porsche.com/reports
FSC
www.c.org
MIX
Papier aus verantwor
tungsvollen Quellen
FSC*
305-3 Other indirect GHG emissions (Scope 3)
Conceptualized by
Jan Waschek, Corporate Publishing
Alexandra Schubert, Corporate Publishing
Coordination and text
Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1
D-70435 Stuttgart
Tel.: +49 711 911-0
Dr Josef Arweck, Vice President Communications
Sabine Schröder, Director Corporate Publishing
Contact persons
Daniela Rathe, Director Politics and External Affairs
Maximilian Steiner, Coordinator for Sustainability and Stakeholder Management
Frank Scholtys, Director Corporate Communications
Legal notice
Tanja Deutschenbaur, Press Officer for Finance and IT
Nadescha Vornehm, Press Officer for Sales and Marketing
Jörg Walz, Press Officer for Production, Logistics, Procurement and Sustainability
Markus Rothermel, Press Officer for Sports Communications
Anja Wassertheurer, Director Product and Technical Communications
Holger Eckhardt, Press Officer for the 911
Jonas Bierschneider, PR Specialist for the 718
Ben Weinberger, Press Officer for Macan, Cayenne and Panamera
Hermann-Josef Stappen, Press Officer for Technology
Mayk Wienkötter, Press Officer for Electromobility, Future Technologies and Connected Car
Matthias Rauter, Press Officer for Human Resources and Social Affairs
2017
14,404
€ million
63,913
70,867
Panamera
Units
38,443
27,942
15,240
Production
Units
268,691
255,683
239,618
911
Units
36,236
33,820
31,648
718 Boxster/Cayman
Units
71,458
Units
Cayenne
95,642
Deliveries
Units
256,255
911
Units
35,573
918 Spyder
Units
246,375
32,197
7
23,658
237,778
32,365
718 Boxster/Cayman
Units
24,750
25,114
23,620
Macan
Units
86,031
97,202
44
16,099
26,427
Macan
27,612
2,875
Financials
Sales revenue
€ million
25,784
23,491
22,318
Total assets
Equity
€ million
38,159
35,019
32,235
€ million
16,477
15,200
11,980
Fixed assets
29,777
3,200
3,613
€ million
Personnel expenses
Units
93,953
98,763
97,177
Cayenne
Units
79,111
59,068
71,693
24,882
Panamera
Units
35,493
37,605
14,218
Units
240
Employees 2)
number
32,325
Taycan ")
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
168
30-34
GRI 305: Emissions (2016)
6.5
8.5
194
6.3
8.1
186
Plug-in hybrids
6.2
7.9
180
Model
Power
Power
Fuel con-
Power con- CO₂-
6.3
8.2
187
output
[hp]**
sumption
sumption
emissions
210
6.2
193
9.2
7.3
7.5
8.1
185
8.9
204
6.3
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
416-1 Assessment of the health and safety impacts of product
and service categories
186
6.2
7.9
180
Cayenne
7.1
9.2
210
Cayenne Turbo
404
550 15.3-14.8*
9.4-8.9* 11.4-11.3* 261-258*
6.5
8.5
7.1
62
7.9
181
[kW]**
450
10.7
7.9
8.9
205
Panamera Turbo S E-Hybrid Executive
500
680
911 Carrera 4S
911 Carrera S Cabriolet
331
450
11.1
7.8
9.0
206
Panamera Turbo S E-Hybrid Sport Turismo
500
680
33
222333
462 2.7-2.6* 16.1-16.0*
62-60*
331
680
500
Panamera Turbo S E-Hybrid
(combined) [kWh/
combined
[1/100 km] 100 km]
[g/km]
7.1
9.2
210
6.5
8.5
194
7.1
35
9.2
Panamera 4 E-Hybrid
340
6.5
8.5
195
Panamera 4 E-Hybrid Executive
340
Panamera 4 E-Hybrid Sport Turismo
340
911
911 Carrera S
210
NN
9.5
11.3
354
CO₂
sumption emissions
(extra-urban) (combined) (combined)
[1/100 km] [l/100 km] [g/km]
718
718 Cayman
718 Cayman PDK
220
300
11.3
220
300
10.8
718 Cayman T
220
300
11.3
718 Cayman T PDK
220
300
10.8
718 Cayman S
257
350
12.7
718 Cayman S PDK
[I/100 km]
(urban)
[kW]
sumption
160
Emission and consumption information
Model
Power
output
[kW]
Power
[hp]
Fuel con-
Fuel con-
Fuel con-
CO₂
sumption
sumption
257
sumption
(urban)
[1/100 km]
(extra-urban) (combined) (combined)
[1/100 km] [1/100 km] [g/km]
Model
Power
output
Power
Fuel con-
Fuel con-
Fuel con-
[hp]
sumption
emissions
462 2.7-2.6* 16.1-16.0* 62-61*
350
718 Cayman GTS
257
350
11.8
718 Boxster GTS
269
365
12.8
718 Boxster GTS PDK
269
365
12.0
666671916666NON6
223215-532321515
6.2
8.1
Macan
Macan
6.2
7.9
180
Macan S
180
245
260
718 Boxster S PDK
12.7
350
257
269
365
12.8
718 Cayman GTS PDK
269
365
12.0
718 Boxster
220
300
11.3
11.8
718 Boxster PDK
300
10.8
718 Boxster T
220
300
11.3
718 Boxster T PDK
220
300
10.8
718 Boxster S
220
462 2.9-2.8* 16.2-16.1*
8.1
3.3
102-45 Entities included in the consolidated financial statements
102-46 Defining report content and topic boundaries
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in reporting
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the report
102-54 Claims of reporting in accordance with the GRI Standards
102-55 GRI content index
102-56 External assurance
44-45
44-45
→ Text
→ Text
44-45, 48-49
→ Text
150
→ Index
41, 44, 46, 48-49,165
→ Text
48-49
→ Text
102-44 Key topics and concerns raised
102-43 Approach to stakeholder engagement
102-42 Identifying and selecting stakeholders
All the employees of the company, with the exception of senior executives, are covered by collective wage agreements. As a member company of
the Südwestmetall Employers' Association, Porsche AG participates actively in the social partnership between the metal and electrical industry
in Baden-Württemberg and the IG Metall trade union. All Porsche AG employees therefore fall under its multi-employer wage agreement, while the
company's own collective agreement covers employees of Porsche Leipzig GmbH.
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
168
7,28,96-105, 160-161
→Text
→ Index/Text
→ Index
30-34
28-35, 65, 125-145, 150, 154
→ Key figures
35, 58-61, 64-65, 75, 154-155
→ Key figures
48, 165
51-52, 122-123, 151
4, 10-27, 36, 165
58-61,64-74
→ Index
→ Text
10, 11, 14, 17, 23, 24, 27, 44, 48,
50-52, 57, 66, 68–69, 76–87,
108-111, 114, 123, 162-165
→ Index
→Text
6-7
40-43, 50-53, 57-61
6-7, 158-159
44-45
→Index
→ Text
→ Index
→ Index/Text
102-18 Governance structure
165
165
Anti-competitive Behavior (2016)
GRI 307:
Environmental Compliance (2016)
GRI 419:
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
204-1 Proportion of spending on local suppliers
308-1 New suppliers that were screened using environmental criteria
408-1 Operations and suppliers at significant risk for incidents of
child labor
409-1 Operations and suppliers at significant risk for incidents of
forced or compulsory labor
412-2 Employee training on human rights policies or procedures
412-3 Significant investment agreements and contracts that include
human rights clauses or that underwent human rights screening
414-1 New suppliers that were screened using social criteria
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
205-1 Operations assessed for risks related to corruption
205-2 Communication and training about anti-corruption policies
and procedures
206-1 Legal actions for anti-competitive behavior, anti-trust,
and monopoly practices
307-1 Non-compliance with environmental laws and regulations
419-1 Non-compliance with laws and regulations in the social
and economic area
Socioeconomic Compliance (2016)
Digital transformation
GRI 103:
66-64*
Vehicle safety
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 103:
Management Approach (2016)
GRI 416:
Customer Health and Safety (2016)
Fuel consumption and
vehicle emissions
GRI 103:
Management Approach (2016)
GRI 206:
GRI 205: Anti-corruption (2016)
GRI 103:
Management Approach (2016)
Compliance
165
168
162
162-165
165
Key topics
Disclosure
Long-term economic stability
GRI 103:
Management Approach (2016)
GRI 201:
Economic Performance (2016)
Long-term customer relations
165
GRI 103:
Management Approach (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 418: Customer Privacy (2016)
418-1 Substantiated complaints concerning breaches of customer
privacy and losses of customer data
Responsibility in the supply chain
GRI 103:
Management Approach (2016)
GRI 204:
Procurement Practices (2016)
GRI 308: Supplier Environmental
Assessment (2016)
GRI 408: Child Labor (2016)
GRI 409:
Forced or Compulsory Labor (2016)
GRI 412:
Human Rights Assessment (2016)
GRI 414:
Supplier Social Assessment (2016)
103-1 Explanation of the material topic and its boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
201-1 Direct economic value generated and distributed
201-4 Financial assistance received from government
102-16 Values, principles, standards, and norms of behavior
Management Approach (2016)
102-13 Membership of associations
*Range depending on the tyre set used
911 Carrera GTS Cabriolet PDK
331
450
11.2
7.5
8.8
202
**Overall system performance
911 Carrera 4 GTS PDK
331
450
11.7
7.2
8.9
203
911 Carrera 4 GTS Cabriolet PDK
331
450
12.3
7.2
9.1
207
201
8.8
7.4
11.2
102-14 Statement from senior decision-maker
16.0
3.3
16.0
74
74
3.3
18.1
76
331
450
11.6
911 Targa 4 GTS PDK
7.6
208
911 Carrera 4S Cabriolet
331
450
11.1
7.8
9.0
207
911 Carrera GTS PDK
331
450
9.1
331
186
12.3
GRI standard
Disclosure
Feb 2019
Service
Printed report
Online version
Omission
GRI 101:
Foundation (2016)
General Disclosures
GRI 102:
This report has been prepared in accordance with the Global Reporting Initiative (GRI) standards on the basis of the "Core" option.
The report was submitted to the GRI services team for implementation of the GRI Materiality Disclosures Service. The description of
the "materiality-related disclosures" (102-40 to 102-49) was confirmed as correct. A detailed version of the GRI Content Index is
available in the Porsche Newsroom: www.newsroom.porsche.de/reports
General Disclosures (2016)
102-2 Activities, brands, products, and services
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organisation
102-8 Information on employees and other workers
102-9 Supply chain
102-11 Precautionary principle or approach
450
102-12 External initiatives
102-1 Name of the organisation
Materiality
Disclosures
Porsche AG
102-10 Significant changes to the organisation and its supply chain
GRI Content Index
GRI
7.2
Panamera
Panamera GTS
338
460
14.6
7.8
|00|
10.3
235
207
Panamera Sport Turismo
162
All models are listed that were available as freely configurable new vehicles at the time of going to press (February 2019).
All figures for consumption can be found at www.porsche.com
161
Performance -Further information
242
9.1
8.2
14.6
460
338
10.6
Panamera GTS Sport Turismo
"We shouldn't be throwing
the limited materials we have
Oliver Blume, 2021
"We assume responsibility. For
sustainable activity, for secure.
jobs and for society. Active.
practice, trust and commitment
are what set Porsche apart."
Responsibility.
28 headquartered in Germany and 85 abroad.
Volkswagen AG holds 100 per cent of the share
capital of Porsche Holding Stuttgart GmbH
and is therefore the ultimate parent com-
pany of the Porsche AG Group. A control and
profit transfer agreement has been in place
between Volkswagen AG and Porsche Holding
Stuttgart GmbH since the 2013 financial
year. Porsche AG's subscribed capital is wholly
owned by Porsche Holding Stuttgart GmbH.
Control and profit transfer agreements are in
place between Porsche Holding Stuttgart GmbH
and Porsche AG, and also between Porsche AG
and its principal German subsidiaries. The basis
of consolidation at Porsche AG includes a total
of 113 fully consolidated companies, with
→ GRI 102-45
Basis of consolidation
7 www.volkswagenag.com website in German
and English from 15 March 2022.
corresponds to the respective sections of the
report. In addition to careful data collection and
recording via internal reporting and processing
systems, as well as detailed internal consolida-
tion and inspection of the information and
data contained therein, a business audit pursu-
ant to ISEA 3000 (Revised) was conducted
to obtain limited assurance against the relevant
criteria and requirements of the GRI Standards.
The audited information is marked in the
report with "V". The independent auditor's
report can be found on pages 71 268-269.
Non-financial report
This report was prepared in accordance with
the Core option of the GRI Standards. The
GRI content index at the end of the report
provides details on the reported disclosures
and lists where they are located in the print
and online versions. Within the scope of the
materiality disclosures service, GRI Services
has reviewed whether the GRI content index
is clearly structured and whether the infor-
mation specified for GRI 102-40 to 102-49
Reporting standard and assurance
→ GRI 102-49
Report content and reporting period
→ GRI 102-46, 102-48
In order to improve readability, all references
are to the masculine form. This formulation
explicitly includes all gender identities. The
photos featured were either taken in accord-
ance with the coronavirus protective measures
applicable at the time or are stock images
which are labelled as such.
Report design
About this report
271 LEGAL NOTICE
Porsche AG Group - brief overview
Independent auditor's report
in this world away after use."
Dr. Ing. h.c. F. Porsche AG makes use of the
exemption provision in Sections 289b (2) and
315b (2) of the German Commercial Code
(HGB) allowing it not to issue a non-financial
report and a non-financial consolidated
report, and refers to the separate non-financial
report of Volkswagen AG for the financial
year 2021, which will be available on the
This documentation represents the sixth time
that Dr. Ing. h.c. F. Porsche AG has published
a combined Annual and Sustainability Report.
The company published its first report in
this format for the 2016 financial year on
17 March 2017. The report is produced
annually. This documentation covers the period
from 1 January 2021 to 31 December 2021.
Information dating from before this period
is also included for completeness. Unless
otherwise specified, the reporting date
is 31 December 2021. The editorial dead-
line was in February 2022. Unless other-
wise indicated, all information refers to the
Porsche AG Group (Dr. Ing. h.c. F. Porsche AG
incl. subsidiaries). The German version
of the report is binding. If content that had
been previously published has since been
corrected, for example due to changes in
collection methods for key figures and data,
this is indicated. Financial analyses as well as
key figures and data are given in compact
form at the end of the report and online in the
Porsche Newsroom newsroom.porsche.com.
This site also contains further information on
Porsche and on the company's commitment
to sustainability. Management approaches to
major topics in this report are contained in
the sections entitled "Environment", "Social"
and "Governance".
Дольшивык. 8. Дожил ввінь чини
LETTER FROM THE EXECUTIVE BOARD OF PORSCHE AG
TCFD index
Michael Steiner
Miral fleines
Lutz Meschke
Deputy Chairman of
the Executive Board
Finance and IT
раг виши
Production and Logistics
Albrecht Reimold
P.RE. M
Chairman of the Executive Board
Oliver Blume
Barbara Frenkel
Procurement
Detlev von Platen
Sales and Marketing
Deller von
H
Shivers
Human Resources
Andreas Haffner
tchers,
GROUP PHOTO OF THE EXECUTIVE BOARD WITH THE MISSION R IN FRONT OF THE PORSCHE MUSEUM
Mobil
עם
Ferry Porsche, 1981
GRI content index
Partner to society
The Supervisory Board
Circular economy
Decarbonisation
88 ENVIRONMENT
Stakeholder survey and materiality
Stakeholder communications and dialogue
Sustainability organisation
Sustainability strategy
76 SUSTAINABILITY MANAGEMENT
72 STRATEGY 2030
06 IMPORTANT EVENTS
Business performance
Outlook
04 LETTER FROM THE EXECUTIVE BOARD
MICH
TAG
Mission R
01
38/30-70
of Porsche AG
2021
Annual and Sustainability Report
Responsibility.
=
PORSCHE
106 SOCIAL
Diversity
Research and Development
120 GOVERNANCE
252 FURTHER INFORMATION
238 NON-FINANCIAL KEY FIGURES
Environmental and energy key figures
Personnel and social key figures
Consolidated statement of changes in equity
Value added statement
Consolidated statement of cash flows
Consolidated statement of financial position
Consolidated statement of comprehensive income
Consolidated income statement
224 FINANCIAL DATA
Results of operations
Financial position
Emission and consumption information
Net assets
Procurement
Production
190 SALES, PRODUCTION AND PROCUREMENT
Sales
180 RESEARCH AND DEVELOPMENT
Communications
Sports
Employees
Society
SPORTS AND COMMUNICATIONS
136 EMPLOYEES, SOCIETY,
Supply chain responsibility
Governance and transparency
214 FINANCIAL ANALYSIS
Dear Reader,
25 years of the Porsche Boxster
We at Porsche are successfully tackling this transform-
ation actively and with all our energy. We are shaping
the transformation flexibly, boldly and pragmatically.
We have further developed our strategy and have worked
extensively on costs. Our 2025 profitability programme
is bearing fruit. 2021 was therefore not only a challenging
year for Porsche, but also a successful one.
Porsche expanded its
Sustainability Council from
five to six members. Sarah
Jastram, Raffaela Rein and
Adnan Amin joined the
advisory body at the
beginning of the year.
ence. Porsche further expanded the advisory
council's business expertise with the addition
of economist Sarah Jastram, Professor of Inter-
national Business Ethics and Sustainability
at the Hamburg School of Business Adminis-
tration, and businesswoman Raffaela Rein,
who has founded multiple companies and is
a German Startups Association board mem-
ber. The Kenyan diplomat Adnan Amin con-
tributes broad international experience in the
area of energy policy. He is a Senior Fellow at
Harvard University and has 20 years of experi-
ence under his belt with the United Nations
and as Director-General of the International
Renewable Energy Agency.
Sustainability Council strengthened
Sarah Jastram, Raffaela Rein and Adnan Amin
have been strengthening Porsche's Sustain-
ability Council since the beginning of the year,
since when they have been collaborating
with the renowned experts Klaus Töpfer and
Ortwin Renn. Lucia Reisch, a professor at
Copenhagen Business School, acts as
spokesperson. In this context, Porsche has
expanded the advisory body from five to six
members. Nicola Leibinger-Kammüller,
Chairwoman of the Management Board of the
mechanical engineering company Trumpf,
additionally attends the meetings and con-
tributes her many years of business experi-
SARAH JASTRAM, RAFFAELA REIN AND ADNAN AMIN JOIN KLAUS TÖPFER, LUCIA REISCH AND ORTWIN RENN (FROM LEFT)
a clear target - Porsche is to achieve balance-
sheet CO₂ neutrality across the entire
value chain by 2030. The major operations in
Zuffenhausen, Weissach and Leipzig have been
balance-sheet CO2-neutral since early 2021.
Porsche has earmarked more than a billion
euros for decarbonisation alone over the next
10 years. The company is gradually avoiding
and reducing CO₂ emissions throughout the
value chain. A residual proportion of emissions
that cannot be avoided will be offset. The
Taycan Cross Turismo is the first vehicle
designed to be balance-sheet CO2-neutral
throughout its service life.
Target of balance-sheet CO₂ neutrality in 2030
Sustainability is a pillar of Porsche's Strategy
2030. For Porsche, the term "sustainability"
encompasses economics, the environment and
social affairs. In the area of the environment,
the sports car manufacturer has launched an
extensive decarbonisation programme with
for the advancement of women in business.
It recognised Porsche as an employer that
very much promotes women. The Women
Career Index jury rates Porsche's mix of
measures as exemplary, be it job sharing
(including in managerial positions), flexible
working time models, mentoring, a women's
network, regular internal and external
communication, maximum individualised
HR development, transparent targets or
numerous diversity initiatives.
Porsche took second place in the Women
Career Index (FKI), a management tool
Second place in Women Career Index
a management tool for the
advancement of women in
business. It recognised
Porsche as an employer that
very much promotes women.
Porsche took second place in
the Women Career Index,
electric cars.
Porsche increases stake in Rimac Automobili
Porsche increased its stake in Rimac Auto-
mobili from 15 to 24 per cent. The Croatian
company develops and produces high-tech
electromobility components, including
high-performance powertrains and battery
systems. It also manufactures electric super
sports cars. Porsche first invested in the
young technology and sports car company in
2018 and increased its stake in the company
to 15 per cent in September 2019. The
company is now investing a further 70 million
euros. Based in Sveta Nedelja near Zagreb,
Rimac Automobili has a workforce of just
under 1,000 and develops and manufactures
super sports cars with up to 2,000 PS and
top speeds of more than 400 km/h. The
company founded by Mate Rimac in 2009
also supplies technologies and systems
to a number of renowned manufacturers of
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
Its silhouette is defined by the sporty roof-
line that slopes down to the rear, which the
Porsche designers have christened the
"flyline". The model family ranges from the
Taycan 4 Cross Turismo with 280 kW
(380 PS) to the Taycan Turbo S Cross Turismo
with 460 kW (625 PS). With the Taycan
Cross Turismo model version, Porsche is ex-
panding the portfolio of its first all-electric
sports car model series and is systematically
continuing on its path of sustainable mobility.
World premiere of the Taycan Cross Turismo
In March 2021, Porsche unveiled the Taycan
Cross Turismo, the all-rounder among electric
sports cars. Like the Sport Saloon Taycan,
the Cross Turismo features the innovative
800-volt electric powertrain. All-wheel drive
and adaptive air suspension offer driving
pleasure off-road too. Back-seat passengers
enjoy up to 47 millimetres more headroom.
It has a load capacity of 1,200 litres behind
the large tailgate.
11
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
ROLF SPRENGER
Important events
In memory of Porsche old hand Rolf Sprenger
Rolf Sprenger passed away on 24 February
2021 aged 77. Sprenger played a special
role in the world of Porsche which is
abundant in individualists and specialists,
one-of-a-kinds and non-conformists - he
became a service provider long before
the term became ubiquitous. Ferry Porsche
once personally commissioned him to offer
customers from all over the world assistance
regarding technical matters and requests
for special features. In 1978, Rolf Sprenger
established a programme that enabled
customers to configure the chassis, engine,
body and interior of their very own sports car.
This now goes by the name of Porsche Exclu-
sive Manufaktur. It is people like Rolf Sprenger
who set Porsche apart in terms of technical
excellence and diversity. And it was Rolf
Sprenger's pronounced technical expertise
that paved the way for many unique
Porsche vehicles.
S.GO 5124E
Artificial intelligence for sustainability goals
Porsche, Audi and Volkswagen are champion-
ing greater supply chain transparency. An
algorithm developed by the Austrian start-
up Prewave identifies supplier-related news
sourced from publicly accessible media and
social networks in more than 50 languages
and from over 150 countries and evaluates it.
This enables sustainability risks such as envir-
onmental pollution, human rights violations
and corruption to be forecast not only in rela-
tion to Porsche's direct business partners, but
also lower down in the supply chain. If there
is any indication of relevant risks, the com-
panies are notified. The case is then examined
by Porsche's Procurement department. Artifi-
cial intelligence is used as a proactive early-
warning system. Since the launch of the
pilot project in October 2020, Porsche, Audi
and Volkswagen have primarily been monitor-
ing direct suppliers as well as a selection of
indirect suppliers. In total, there are currently
more than 4,000 suppliers involved.
14
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
17
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
PORSCHE BRAND AMBASSADOR RICHY MÜLLER WANTS TO MAKE READING FUN
LICHE TIERE
In an online auction held in Zurich in April,
a Porsche Taycan was auctioned off as a mobile
work of art. The seven-day online auction was
conducted by RM Sotheby's and more than
50 bids were submitted for the mobile work
of art. Porsche Schweiz donated the entire
proceeds in the amount of 200,000 US dollars.
(185,000 Swiss francs) to the Swiss non-
profit organisation Suisseculture Sociale. In
this way, Porsche and the project partners are
supporting Swiss creative artists, a sector
which has been hard hit by the coronavirus
pandemic. With the aid of the car wrapping
specialists at SIGNal Design, American artist
Richard Phillips designed the Taycan Artcar
as a one-off. Phillips applied his large painting
"Queen of the Night" to the Taycan body.
200,000 US dollars for a good cause
Porsche and the Stiftung
Lesen foundation have
launched another five reading
clubs at schools in Stuttgart,
Böblingen and Ludwigsburg.
Porsche encouraging children to read
To mark World Book Day on 23 April, Jörg
F. Maas, Managing Director of the foundation
Stiftung Lesen, spoke in the Porsche News-
room about children's and young people's joy
of reading. Richy Müller had the opportunity
to speak in two capacities - the actor and
racing driver is a Porsche brand ambassador
and reads to children on behalf of the Stiftung
Lesen foundation. Member of the Executive
Board responsible for Human Resources
Andreas Haffner stressed the importance of
getting children to read from an early age:
"Children who do not learn to read well early
on do not only get off to a bad start - they
often also fail to catch up again." Porsche and
the Stiftung Lesen foundation have launched
another five reading clubs at schools in Stutt-
gart, Böblingen and Ludwigsburg. In total,
Porsche supports 12 reading clubs in Baden-
Württemberg and Saxony.
16
Software update for first-generation Taycan
Porsche comprehensively overhauled the
all-electric Taycan for model year 2021.
Taycan customers whose electric sports cars
were delivered in model year 2020 now
benefit from the main upgrades too. Porsche
has made the free software update available
around the world. This fine-tunes the driving
dynamics, introduces new smart charging
functions and adds additional Porsche
Connect services to Porsche Communication
Management (PCM). For Taycan models with
adaptive air suspension, the update also in-
cludes the new Smartlift function. This allows
the Taycan to be programmed to be auto-
matically raised in certain recurring places
such as garage driveways and speed bumps.
The Charging Planner function has likewise
been expanded. The driver can now deter-
mine what charging status the Taycan should
have upon arrival at the destination entered.
The update fine-tunes the
driving dynamics, introduces
new smart charging functions
and expands Porsche
Communication Management
(PCM).
in Germany's Eifel region.
In March, Porsche congratulated Manthey-
Racing on its 25th anniversary. Based in
Meuspath close to the Nürburgring Nord-
schleife, the company was founded by racing
driver Olaf Manthey in 1996 and has enjoyed
close ties with Porsche from the beginning.
In 2013, Manthey merged his company with
Raeder Automotive GmbH. That same year,
Porsche AG consolidated the successful
collaboration with a 51 per cent majority
stake and has been systematically expanding
the cooperation ever since. The company
Manthey-Racing GmbH is managed by the
co-owners Nicolas and Martin Raeder and
has a workforce of approximately 200. It is re-
sponsible among other things for the appear-
ances of the works team's Porsche 911 RSR
in the FIA World Endurance Championship
(WEC) as well as of the 911 GT3 R, otherwise
known as the "Grello", in the Nürburgring
Endurance Series (NLS). Manthey-Racing is
also responsible for Porsche's appearances
in the 24-hour race on the legendary circuit
25 years of Manthey-Racing
SOR Poriche Zentrum Wiesba
H&R
THE TEAM AND THE 25-YEAR-OLD MANTHEY-RACING WITH PORSCHE 911 GT3 R CARS
H&R
Psche Zentrum Sarand
H&R
SBM swiss barge ag
GRAN TURISMO
2030
Porsche supported schools in Baden-
Württemberg and Saxony with a comprehen-
sive aid programme in the midst of the
coronavirus lockdown in March. Porsche
Consulting experts started by visiting various
types of school to examine them and then
categorised them as four different types -
"analogue stragglers", "committed develop-
ers", "resolute catcher-uppers" and "digital
trailblazers". The Digital Turbo for Schools
initiative focused on the first three categories.
Schools which were interested could apply
for the aid programme. Porsche Consulting
provided 15 schools in Baden-Württemberg
and Saxony with up to 10 support days.
The aid programme includes maturity level
analysis, emergency aid and medium- and
long-term planning. More than 180 Porsche
employees from the field of IT and from
Porsche Digital volunteered as a task force,
contributing their knowledge to local schools.
Digital Turbo for Schools
DIGITALISATION IN THE CLASSROOM
Outlook
IMPORTANT EVENTS
Business performance
5
Letter from the Executive Board of Porsche AG > The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
4
The Executive Board of
Dr. Ing. h.c. F. Porsche AG
And we make our customers' dreams come true.
The year 2021 proved that our business model is flexible
and is well set up for turbulent times too. Our brand
continues to have a strong appeal. Our forward-looking
strategy brings together everything that Porsche stands
for-sportiness, innovation, sustainability and profitability.
For us, teamwork is a management philosophy. It takes
a well-trained and highly motivated team to delight
our customers day in, day out. We therefore invest in our
employees, their health and their ongoing development.
Because transformation is changing many activities and
qualifications, and this is a change which we are likewise
expediting in an active and targeted manner.
Another task which we believe needs to be tackled is that
of potentially making internal combustion engines virtually
CO2-neutral with the help of synthetic fuels. We are there-
fore involved in developing eFuels. Our pilot project in
Chile will go into operation this year.
But merely putting electric vehicles on the road is not
enough. We are also looking at where the energy comes
from which is needed for operations. Our activities will
therefore also focus on the promotion of sustainable
energy sources such as solar arrays and wind turbines.
Electrification remains at the heart of our strategy.
In 2021, 39 per cent of our new cars delivered to
customers in Europe were electrified, either as hybrids
or with an all-electric drive. Globally, it was almost
25 per cent. We intend to increase this to over 80 per cent
by 2030. We are also moving into the manufacture of
high-performance cell batteries via the joint venture
Cellforce Group.
Our plant in Zuffenhausen has been balance-sheet
CO2-neutral since 2020. The Weissach and Leipzig sites
followed suit in 2021. We also require our direct suppliers
to use renewables. And we ourselves are promoting their
expansion - in total, we are budgeting more than a billion
euros to be spent on decarbonisation measures.
We are aiming to be balance-sheet CO2-neutral all along
the value chain by 2030. We have already begun to
systematically implement the necessary steps for this.
We once again championed all kinds of different social
issues together with our employees in 2021. And what
can we do to slow down climate change? We believe
this is the most important question of this generation.
We wish to be a trailblazer and a role model and we see
ourselves as a pioneer of sustainable mobility.
We are structuring our company in such a way that it will
remain stably on track for success during the transform-
ation too. Our core business is both robust and flexible.
Accounting for around 90 per cent of total sales, it
serves as our foundations. We are focusing on developing
future-oriented technologies. Our corporate culture is
founded on a solid set of values involving committed action
for the environment and society.
Together with strong partners, we are introducing innov-
ations and are pushing one another to achieve peak
performance. We are advancing the development of high-
performance battery cells, synthetic fuels and electric
super sports cars. We are working together on expanding
the charging infrastructure.
We continue to pursue our forward-looking Porsche
Strategy 2030. We are focusing on what has always made
us strong and set us apart - our customers, the strong
brand, exciting products, and the people who work at
Porsche and are passionately shaping the transformation.
We delighted our customers yet again with a large number
of new, thrilling combustion engine models - the high-
performance 911 GT3, the dynamic 911 GTS, the extremely
agile 718 Cayman GT4 RS, the Cayenne Turbo GT and the
third generation of the Macan.
Our success is founded on strong demand for our fascin-
ating products. The Taycan model family grew
considerably in 2021. In addition to an entry-level model,
the Cross Turismo, GTS and GTS Sport Turismo were also
rolled out. In terms of deliveries, the first all-electric
Porsche is already on a par with our iconic 911 sports car,
which itself is more popular than ever.
The figures for the financial year are pleasing.
We delivered 301,915 new vehicles to our customers all
over the world that's more than ever before. Operating
profit totalled 5.3 billion euros and the return on sales
came to 16.0 per cent. We are therefore operating highly
profitably. We have exceeded our target and are setting
standards in global automotive competition.
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
IMPORTANT EVENTS
THE BOXSTER THEN AND NOW: THE STUDY (LEFT) MEETS THE CURRENT MODEL (RIGHT)
The year under review began with an anniver-
sary, the 25th birthday of the Porsche roadster
family. This gave the sports car manufacturer
00
S GO 5007
10
911 GT3 IN GUARDS RED
Porsche donated 339,000 euros to the
regional sports federations of Baden-Würt-
temberg and Saxony as swift support for
sports clubs. Thirty-eight sports practised at
113 clubs benefited. Each club was awarded
immediate aid of 3,000 euros, the purpose
of the funds being to help maintain sporting
activities during the coronavirus pandemic.
In selecting the clubs, the two regional sports
federations gave positive recognition of the
fact that the clubs were offering young
sportspeople alternative services during the
pandemic, such as digital exercise videos,
live streams and virtual contests. The clubs
selected also focus in particular on youth
work, integration or inclusion and represent
both recreational and competitive sport.
Supporting the clubs in their youth sport work
in difficult times is a matter close to Porsche's
heart. Children and young people need to
be enthusiastic about their sport and club life
during the coronavirus pandemic too.
339,000 euros in aid for sports clubs
In February, Porsche once again took on the
sponsorship of various start-up companies
at the ninth Expo Day of the innovation
platform Startup Autobahn. The start-ups
SevenD and Visometry, for example, have
programmed a digital alternative to the
traditional user manual. Augmented reality
technology allows users to interactively
familiarise themselves with the Taycan step
by step. Porsche has been a partner of
Startup Autobahn, the innovation platform
in the field of mobility, since 2017.
Three start-up sponsorships
A new member of the Porsche GT family cele-
brated its premiere in February, in Porsche's
online format NewsTV. Model Line Vice Presi-
dent Frank-Steffen Walliser, Vice President
GT Cars Andreas Preuninger and the Porsche
brand ambassadors Walter Röhrl and Jörg
Bergmeister presented the 911 GT3, the first
GT model based on the latest generation of
the Porsche 911 (992). Its development
focused on motorsport and the transfer of
technology from the racetrack to the road.
The new GT3 boasts significantly improved
performance coupled with greater comfort.
The innovative rear wing originated on the
successful GT racing car 911 RSR, while
the 375 kW (510 PS) four-litre six-cylinder
boxer engine is based on the engine of the
911 GT3 R which has been put through its
paces in endurance racing. The model range
was completed in June by the GT3 with
Touring Package - a model version that does
without the fixed rear wing and which is com-
mitted to understatement.
New 911 GT family member
2021 was another year of major challenges. The corona-
virus pandemic and the global semiconductor shortage call
for immense efforts. At the same time, the far-reaching
transformation of the automotive industry continues apace.
We will experience more changes over the next five years
than we have in the past 50 years.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
A fourth version of the all-electric Taycan
sports car was introduced in January 2021.
The Taycan with rear-wheel drive is delivered
with a Performance Battery as standard with
capacity of 79.2 kWh. A Performance Battery
Plus with capacity of 93.4 kWh is also avail-
able upon request. Its range in accordance
with WLTP is up to 431 kilometres with the
small battery and up to 484 kilometres with
the large battery. The new entry-level model
boasts aerodynamically optimised 19-inch
Taycan Aero wheels and black anodised brake
callipers. The nose underside, the side skirts
and the rear diffuser are likewise black.
Entry-level Taycan with rear-wheel drive
S.GO 380E
8
Porsche and the Swiss luxury watchmaker
TAG Heuer announced a strategic brand
partnership in February. Both companies
are long-standing brands with the highest
expectations of quality regarding their prod-
ucts - Heuer created the very first chrono-
graph; Ferdinand Porsche constructed an
innovative electric wheel hub motor more
than 120 years ago; Heuer received recogni-
tion at the 1889 world's fair, as did the first
Lohner-Porsche Electromobile at the 1900
Paris Exposition. In a nod to the motorsport
history they have in common, Porsche and
TAG Heuer intend to collaborate on various
topics in the future. They started by present-
ing a new watch, the TAG Heuer Carrera
Porsche Chronograph.
Partnership with TAG Heuer
to launch an anniversary
model, the Boxster 25 years,
limited to 1,250 vehicles
around the world.
This gave the sports car
manufacturer a good reason
iconic 911 in 1997. This marked the beginning
of a new era, with a shift from air cooling to
water cooling.
a good reason to launch an anniversary model,
the Boxster 25 years, limited to 1,250 vehicles
around the world. This new edition is based
on the 294 kW (400 PS) GTS 4.0 model
with a four-litre six-cylinder boxer engine. The
car includes numerous design features taken
from the Boxster study that heralded the
success story of the open two-seater at the
Detroit Motor Show in 1993. The produc-
tion version was rolled out in 1996. With this
model line, Porsche broadened its model
diversity. The agile mid-mounted engine
roadster was entirely new, as was the water-
cooled six-cylinder production boxer engine,
which subsequently also featured in the
It features LED main headlights as standard.
More than 180 Porsche
employees from the field of
IT and from Porsche Digital
volunteered as a task force in
the Digital Turbo for Schools
initiative.
9:11. Porsche. Podcast.
VICE PRESIDENT COMMUNICATIONS SEBASTIAN RUDOLPH WELCOMES CHAIRMAN OF THE EXECUTIVE BOARD OLIVER BLUME TO THE 9:11 PODCAST
SALES, PRODUCTION AND PROCUREMENT
Sales
Production
Procurement
0
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
SALES
Satisfied customers
Numerous trade magazines and independent
studies confirm the high quality of Porsche's
products and services and its above-average
customer satisfaction levels, the latter being
due among other things to its customer
relationship management (CRM) programmes.
The company systematically focuses on
the customers' wishes and requirements at
all stages of the customer journey. Below
are some examples of the awards and prizes
received in various markets.
2021 accolades and awards
The well-known US automotive advice maga-
zine Kelley Blue Book awarded the sports car
brand the accolade "Best Resale Value -
Luxury Brand" for the fifth consecutive year
in 2021. In addition, the Macan model won
the prize for the highest resale value in the
category Best Compact Luxury SUV.
At the World Car Awards (WCA), the Porsche
911 was named World Performance Car
of the Year 2021. More than 90 international
automotive journalists act as WCA jurors.
In the Automotive Performance, Execution
and Layout Study (APEAL) conducted
by renowned US market research company
J.D. Power, Porsche once again clinched first
place in the luxury segment, like last year.
The APEAL study looks at the attractiveness
of vehicles in the USA. This involves new car
buyers being surveyed once a year.
The sports car manufacturer also achieved
first place as the best brand in the Sales
Satisfaction Index (SSI) for the USA. Porsche
took first place in this rating in Canada too.
This index is likewise compiled annually
by J.D. Power and determines how satisfied
those interested in buying a new car are
with the authorised dealers during the pur-
chasing process.
The company also impressively clinched
first place among the premium brands in
J.D. Power's Customer Service Index (CSI).
The CSI indicates how satisfied the customers
are with the authorised dealers' servicing
and repairs.
In Germany, readers of the trade magazine
auto, motor und sport ranked the 911 first
in the Sports Car category. It was ranked first
in the previous year too. In the Convertibles
category, the 911 Cabriolet and 911 Targa
triumphed. In addition, the Taycan took first
place in the Executive Cars category for
the first time.
In the Golden Steering Wheel, Bild am
Sonntag and Auto Bild named the Panamera
the 2021 winner in the Mid-Range and
Executive Cars category.
For the 18th time, Auto Bild and Schwacke
chose their "value champions". The Porsche
911 Carrera 4S PDK clinched the 2021 title
of Germany's sports car with the most stable
value, with value retention of 57.95 per
cent. In the Auto Bild TÜV-Report 2021, the
Porsche 911 was classified as a "best-seller
that lasts".
At the Sport Auto Awards 2021 in Germany,
Porsche was successful in a total of seven
categories. The Porsche 911 took first place
in no less than four categories. The Taycan
Turbo S was named best electric car, while
the Cayenne Turbo Coupé was named the
sportiest SUV.
The British magazine Top Gear awarded the
Porsche 911 GT3 the title Chris Harris' Car
of the Year 2021 and classified the Porsche
Mission R as Concept of the Year 2021.
The British newspapers The Sunday Times
and The Times additionally named the Taycan
Cross Turismo Adventure Car of the Year
2021 and the 911 GT3 Sports Car of the Year
2021. The lifestyle magazine GQ recognised
the 911 Turbo Cabriolet as Convertible of the
Year in 2021.
PORSCHE DELIGHTS THE OLD AND YOUNG ALIKE
192
PORSCHE
STHA 5866
THE PORSCHE COMMUNITY IS AN IMPORTANT FUTURE FACTOR AND CONSISTS OF PEOPLE WHO SHARE A PASSION FOR PORSCHE
The brand as a success factor
189
The brand is the number one reason why
people buy a Porsche. And this trend is in-
creasing. In a 2015 survey, 41 per cent of the
German buyers of a new Porsche stated that
they chose their vehicle based on the brand.
By 2019, this had already risen to 48 per cent,
in other words almost one in two buyers. The
brand will be even more important as a differ-
entiation factor in the future. It therefore has
a key part to play in Porsche's Strategy 2030.
The Porsche community is an important
future factor. It consists of people who share
a passion for Porsche. The company benefits
from its unique history here - Porsche has
been shaping the future of the sports car for
more than 70 years. More than 230,000 fans
of the brand come together in Porsche Clubs
around the world. The Porsche community
is unique in the automotive world. This special
status needs to be exploited and expanded
among other things to reach out to new target
groups. These are both key brand manage-
ment aims.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The digital twin offers customers advantages
above and beyond vehicle operation too.
The digital vehicle file can show the vehicle's
residual value, thereby increasing transpar-
ency for the buyers and sellers of used cars.
In addition, there could conceivably be an
extended approved manufacturer's warranty
based on seamless documentation of com-
ponents or even certification with a price
recommendation for reselling a vehicle.
responsible for an electric vehicle's emis-
sions balance. It also influences the market
success as the dimensions have to meet
the customers' requirements and expectations.
The best results are achieved with a medium-
sized battery where the optimum driving
dynamics balance has been struck between
weight and efficiency.
Future developments will further improve
the driving dynamics and reduce the charg-
ing time. Even greater progress can be
expected with regard to reducing CO₂ emis-
sions. The second generation of electric
vehicles, which will be rolled out shortly, will
release around a quarter fewer carbon diox-
ide emissions over its life cycle than the first
generation. Above all, however, battery tech-
nology will significantly improve the envir-
onmental footprint - new cell technologies
will lower energy consumption, while better
charging capacity will improve efficiency.
The proportion of recycled raw materials
from batteries is set to grow. This is helping
the target set of balance-sheet CO₂ neutrality
throughout the value chain by 2030 to
be achieved.
Moving into the manufacture
of high-performance battery cells
Porsche is actively moving into the manu-
facture of high-performance battery cells
through its investment in the Cellforce Group.
The Cellforce Group is a joint venture be-
tween Porsche and Customcells GmbH.
A planned production facility is scheduled to
have an initial capacity of at least 100 MWh
a year from the end of 2024. This equates to
high-performance battery cells for some
1,000 vehicles. The cells are special lithiumion
battery cells for use in motorsport and in
high-performance vehicles. The chemistry
behind the new high-performance cells re-
volves around silicon as the anode material.
This makes it possible to considerably in-
crease the energy density compared with the
current production batteries. The battery
can be more compact in design while offering
the same energy content. This new chemistry
also reduces the battery's internal resistance,
enabling it to absorb more energy during
energy recuperation and making it more efficient
during fast charging.
Research and development
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
187
Digital chassis twin for predictive driving
functions and component statuses
The performance of the integrated sensor
technology, connectivity and data processing
improves with every new Porsche generation.
New opportunities to use all this information
effectively therefore present themselves
all the time. One of these is what's known as
a digital twin. This is the virtual copy of
a physical counterpart and it allows for data-
driven analysis, monitoring and diagnostics.
A vehicle's digital twin consists not only of
the operating data collated, but also of its
consequences - information which is gathered
during scheduled servicing and unplanned
repairs. Parts of this digital twin therefore
already exist in the memory of control units
and in the Porsche Centre databases.
The huge potential of the digital twin lies in
the fact that its data is pooled in a centralised
intelligence system. Conclusions that benefit
every single vehicle and therefore every indi-
vidual customer can be drawn from data rele-
vant to an entire field. With this big data, an al-
gorithm can then calculate the driving style
on the basis of, for example, sensor data from
A "digital twin" is the
virtual copy of a physical
vehicle and it allows
for data-driven analysis,
monitoring and diagnos-
tics - minus the real-world
costs and constraints.
the engine and chassis and recommend not
only the vehicle's optimum service time, but
also the servicing scope. And more import-
antly, component wear and even potential
failures can be calculated in the same way
even before they actually occur - resulting in
a considerable safety bonus.
For around three years, Porsche's software
specialists have been working on the con-
cept of a digital twin with a focus on the
chassis, that is to say a "chassis twin". This
project is now being continued by CARIAD,
the Volkswagen Group's independent auto-
motive software company. The advantage of
this is that, rather than only Porsche vehicle
data being drawn on, data can be sourced
from all the Group brands, thus increasing the
pool of vehicles by a factor of up to 20.
With a Porsche, it is the chassis that is sub-
jected to the greatest loads, in particular
when racing on circuits. The development of
a digital twin therefore starts with the chas-
sis. Forces are identified in the vehicle imme-
diately and are communicated to the driver
thanks to sensor technology in the vehicle
and the intelligent, self-learning algorithms
PORSCHE HAS BEEN WORKING ON A DIGITAL TWIN CONCEPT FOR AROUND THREE YEARS
188
S.PO 513
THE DIGITAL TWIN DATA IS POOLED IN A CENTRALISED INTELLIGENCE SYSTEM
used for centralised analysis. This increases
passenger safety because certain malfunc-
tions are flagged up immediately before the
vehicle user or the repair shop identifies
the error on the basis of, for example, noises
or vibrations.
Porsche is already putting the digital chassis
to the test in practice. The component
being monitored is the air suspension in the
Porsche Taycan. In the pilot project, body
acceleration data is initially primarily being
used to calculated thresholds. If these
thresholds are exceeded, the PCM system
prompts the customer to have their chassis.
checked at a Porsche Centre. In this way,
it is ensured that the wear limit is not ex-
ceeded and consequential damage is pre-
vented thanks to repairs being performed
promptly. Both at the testing and production
stage, data protection takes top priority.
The customers' consent to anonymised data
being transferred is therefore sought via
the PCM system. Approximately one in two
Taycan customers is participating in this
pilot project, representing very positive feed-
back for this use of the digital chassis.
The digital twin offers
customers advantages
above and beyond vehicle
operation too. The digital
vehicle file can show the
vehicle's residual value,
thereby increasing trans-
parency for the buyers and
sellers of used cars.
Research and development
"PORSCHE ISN'T SIMPLY
A PRODUCT. PORSCHE IS
A PROMISE THE PROMISE
OF A SPECIAL BRAND
AND PRODUCT EXPERIENCE.
BECAUSE THIS IS PRECISELY
WHAT MAKES US UNIQUE."
Detlev von Platen,
Member of the Executive Board -
Sales and Marketing
The digital Porsche Charging Service makes
it easier for Porsche drivers to charge their
electric cars and pay for the electricity. All
of the charging procedures here are balance-
sheet CO2-neutral. Porsche Charging Service
offers a high-performance charging network
with close to 200,000 AC and DC charging
points in 20 European countries, including
just under 6,500 charging points with
DC charging capacity of more than 50 kW.
These include the quick-charging stations
belonging to the IONITY partner network.
There are additional Porsche Charging
Service solutions in the USA, Canada and
China. In the USA and Canada, for example,
there are the Electrify America and Electrify
Canada networks.
more than four times as many as there are
currently (approximately 1,500). Porsche and
the other shareholders will invest 700 million
euros for this up to 2025. Porsche is planning
its own quick-charging stations along key
European traffic routes and motorways to
complement the IONITY network.
Porsche Destination Charging provides AC
charging points at select hotels, restaurants,
airports, shopping centres, sports clubs and
marinas. There are currently around 3,300 of
these charging points in more than 74 coun-
tries. The Porsche Turbo Charging stations
are another practical 800-volt charging op-
tion and can be found at many dealerships
in 54 markets.
The company offers various solutions for
home garages too, such as the Porsche
Mobile Charger Connect with charging
power of up to 22 kW (or 9.6 kW in the case
of the USA). The Porsche Charging Dock
and Porsche Compact Charging Pedestal
are also available upon request, for wall
mounting or for free-standing installation.
The optional Home Energy Manager (HEM)
allows for smooth and convenient charging at
home. This smart control centre is integrated
into your home mains by an electrician. The
HEM optimises the charging process in terms
of power, time and cost. It also offers protec-
tion against overloading the house's mains
network (blackout protection) by reducing
the vehicle's charging power in the event of
an impending overload. Optimised for the
use of self-generated power, the HEM allows
for targeted charging with domestically
produced solar power.
Together with an external partner, Porsche
also offers related services the Porsche
Charging Pre-Check (online) and the Porsche
Home Check. In the case of the latter, an
electrician checks the conditions on-site and
can then subsequently also install the char-
ging equipment.
PORSCHE
Destination
Charging
PORSCHE DESTINATION CHARGING PROVIDES AC CHARGING POINTS AT SELECT HOTELS, RESTAURANTS AND AIRPORTS
196
S.TA 5135E
SINCE 2021, THE ALL-ELECTRIC TAYCAN HAS ALSO BEEN AVAILABLE FROM THE FLEXIBLE MOBILITY SERVICE PORSCHE DRIVE SUBSCRIPTION
Flexible mobility services
The premium manufacturer offers a flexible
mobility concept under the Porsche Drive
umbrella brand. This allows sports cars to be
rented for various periods such as three hours
or at least six months. Depending on the offer,
the vehicle can even be swapped within its
model range at short notice every 48 hours.
Starting in June 2021, the Mobility Services
business division was gradually transferred
to Porsche Financial Services GmbH.
With Porsche Drive Subscription, young used
cars aged between six and 48 months can
be rented, including the all-electric Taycan.
Lasting at least six months, the contract
term is shorter than that of a traditional lease
agreement. The rental price includes every-
thing except for refuelling and charging costs.
The subscription can be terminated with a
notice period of three months.
Porsche Drive Rental allows customers to rent
their dream car for a matter of hours or days.
With this premium short-term rental service,
they can rent their dream car for anything
from three hours to 28 days - an attractive
offer in particular for weddings, anniversaries
or short holidays. The chosen Porsche model
can be collected from 19 sites throughout
Germany. Porsche Cars North America (PCNA)
offers similar car subscriptions in the USA.
Sales, production and procurement
For a flat fee, customers in Los Angeles,
Atlanta, Phoenix and San Diego can hire a
single Porsche model for one or three months
(Porsche Drive - Single-Vehicle Subscrip-
tion). Anyone wishing to hire a sports car
for just a few days can choose "Porsche
Drive
Rental". Last, but not least, "Porsche
Drive Multi-Vehicle Subscription" allows
customers to make unlimited vehicle swaps.
This monthly subscription programme is
app-based. All three offers are available at
Porsche Centres in 14 cities, with other
sites already in the pipeline.
Faster configuration with Al
Since spring 2021, the Porsche Car Config-
urator has been using artificial intelligence
(Al) to offer personalised recommenda-
tions. The Al takes a fraction of a second to
determine which vehicle options from among
an almost unlimited number of possible
combinations might suit a user and then
suggests these to the user. On average, there
is an accuracy rate of more than 90 per cent
in terms of equipment details that match the
customer's interests. This "recommendation
engine" optimises itself on the basis of the
new data it collects, so this rate will improve
further over time.
Sales personnel changes
Marco Schubert became Vice President
Region Europe at Porsche on 1 July 2021.
He was previously President of the Audi
Sales Division China. Schubert follows in the
footsteps of Barbara Frenkel, who moved to
the Executive Board of Porsche AG.
Sarah Simpson became Chief Executive
Officer of Porsche Cars Great Britain on
1 September, replacing Marcus Eckermann,
who took on a new position at Porsche AG.
Sarah Simpson has worked for the Volks-
wagen Group for more than 20 years and has
spent the last 10 years at Bentley Motors.
Likewise on 1 September, Daniel Schmollinger
assumed the position of Chief Executive
Officer of Porsche Cars Australia (PCA) and
the Porsche Retail Group Australia (PRGA).
He succeeds Sam Curtis as Managing
Director and Chief Executive Officer. He was
most recently Vice President of Marketing
at Porsche China.
Jacqueline Smith-Dubendorfer, most recently
Global Vice President Digital Partner
Commerce at adidas, was appointed Vice
President Smart Mobility & Digital Sales on
1 October. As such, she is responsible among
other things for the digital sales channel
launched in 2019.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
197
Dense charging infrastructure
195
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
It is a question of creating unique experi-
ences with Porsche. For example, the
brand can be experienced live and up close
at a Porsche Experience Centre (PEC).
There are currently nine of these special
experience centres around the world, in-
cluding the centre opened in Kisarazu in the
Tokyo metropolitan area on 1 October.
The tenth PEC is currently under construc-
tion in Toronto, Canada. PECs are visited
by around 150,000 customers and Porsche
fans a year. This service further enhances
the brand's appeal.
Innovative brand appearances are also
made in modern formats including urban
events such SCOPES Driven by Porsche.
These events were held in Singapore and
Warsaw in 2021. With SCOPES, Porsche
offers young, dynamic creators and artists
and also innovative companies a platform
where they can discuss the trends and
future topics in their region. It is modern
contact points like this that make the
brand more attractive too.
Sales, production and procurement
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
193
ONE OF THE FIRST TWO PORSCHE STUDIOS WITH THE NEW CONCEPT OPENED IN TAIWAN IN SPRING 2021
Digital convenience in retail
The Sales department is digitalising the
sales process at the dealerships with
Porsche One Sales (POS). POS is an inte-
grated, user-optimised IT system that
brings all the relevant sales steps together
in a single user interface. The new and used
car salespeople at the Porsche Centres
use POS on a variety of devices such as
laptops and tablets, enabling them to focus
entirely on the customer during consult-
ations. As well as configuration, for example,
equipment details can be demonstrated
on display vehicles.
Following a trial period at select German
Porsche Centres, POS was rolled out through-
out Germany in January 2021, followed by
Switzerland and France in July. Local teams
in China and the USA are working on devel-
oping versions which are tailored to their
regions. POS is now being used by 15 deal-
ers in China and 31 in the USA. Its roll-out
to other markets in Europe and overseas will
begin in early 2022.
Customers enjoy a digital premium service
after buying a new or used car too, with all
the services being managed centrally via
the My Porsche customer ecosystem. This
can be used to arrange appointments,
select the service consultant and digitally
plan a vehicle drop-off. A video-based ve-
hicle check is another of its features. Here,
the service consultant records the condi-
tion of the vehicle and documents all
the work needed by video. The customer
can then view the recordings and approve
the corresponding offer with just a few
clicks in My Porsche.
Digital service booking has been available
through all the dealers in Germany, China,
North America, Norway, France and Singa-
pore since autumn 2021. The video-based
vehicle check is already available in a num-
ber of European markets including Spain,
Portugal and Italy. The services will be rolled
out in many more countries in the course
of the year, focusing in particular on North
America, Europe and Asia.
Customers enjoy a digital
premium service after buying
a new or used Porsche too,
with all the services being
managed centrally via
the My Porsche customer
ecosystem.
Inspirational dreams: "Dreamers. On."
The "Dreamers. On." marketing campaign
focuses on lifelong dreams and these dreams
being realised. Its aim is to engage with new
strategic target groups and inspire them
to achieve their personal lifelong dreams. In
addition, the brand purpose Driven by Dreams
is to be firmly embedded in the minds of the
existing and new target groups.
Of the individual factors, it is above all the
traction battery which has a major influence
on CO₂ emissions during the life cycle -
around 40 per cent of the carbon dioxide
generated during the manufacture of a single
Taycan can be attributed to the battery.
In other words, the battery size is largely
An interactive online mentoring programme
called The Art of Drive was launched as
part of "Dreamers. On." at the end of
July 2021. In short films, articles, inter-
views and digital events, famous faces
such as the American musician Annie Clark
reported on how they realised their dreams
and inspired others in the process. The
mentors encouraged the users to tackle
ambitious projects. The Art of Drive came
about in collaboration with the media
partners Vogue and Wired.
Close to the customers - urban retail formats
Porsche seeks to offer excellent service and
an extra special brand experience across all
of its sales channels, be it at physical dealer-
ships or in the digital marketplace. An omni-
channel approach means being accessible for
the customers everywhere and at all times.
Porsche Sales is in a strong position overall -
the network comprises around 900 strong
and loyal sales partners in 128 markets
around the world. The Destination Porsche
retail concept serves as the umbrella for all
the physical retail formats. The concept will
be rolled out globally and has already been
implemented at 10 Porsche Centres. Over
600 more are set to follow by the end of
the decade. The company has so far invested
more than 500 million euros in this. The
Porsche dealers are likewise making large
financial commitments in order to move away
from the traditional car dealership and more
in the direction of a brand experience venue.
Porsche additionally has a Future Retail strat-
egy - the company wishes to engage not
only with its existing customers, but also with
new, younger target groups and increasingly
also with women. New urban retail formats
such as the Porsche Studios and the Porsche
NOW sales pop-ups have a part to play here.
The idea is that, with city centres becoming
more and more important due to the trend of
urbanisation, Porsche goes to where its target
groups can be found.
The Porsche Studios are primarily found in
heavily frequented city centre locations such
as in shopping centres. The focus is on the
brand experience. In addition to a showroom
there is a fitting lounge where vehicles can
be configured and ordered. Test drives can
also be taken. Small-scale events are also
frequently held there. The first two Porsche
Studios were opened in Taiwan and Vietnam
in spring 2021, followed by a studio in Oslo,
Norway, on 1 July. By 2023, according
to current planning, there will be more than
25 Porsche Studios worldwide.
While the Porsche Studios are permanent,
the Porsche NOW sales pop-ups are used
for a limited period only. In addition to the
cars on display, visitors to the pop-up stores
can sample the Porsche Drivers Selection,
familiarise themselves with the Porsche
Exclusive Manufaktur services and make use
of virtual reality applications and the private
configuration lounge.
Porsche NOW locations opened on Jeju Island
in South Korea and in Zurich, Switzerland, in
summer 2021. So far, there have also been
temporary Porsche stores in Brazil, Germany,
Japan, Canada and Taiwan. Other new open-
ings of these urban formats will follow.
Digital sales channel boosts sales
Porsche and the Porsche dealer organisation
have heavily expanded online sales since
they were introduced in October 2019. In
2020, 1,700 new or used Porsche vehicles
were sold on the digital platform around
the world; by 2021, this had already risen to
5,800. The Porsche dealers' sales in this
area increased threefold in the year under
review too - while sales of 160 million euros
were achieved in 2020 as a whole, the half
a billion euro mark was achieved in the first
half of 2021 alone.
The vehicle finder function is now available
in 101 markets around the world. Authorised
Porsche dealers use this platform to offer
their new and used cars which are available
immediately online. These include basic
models and also rarer versions. In addition,
customers in 24 European markets and in
the USA, Canada and China can order their
dream vehicle online.
In China, used cars offered by Porsche
dealers can even be found and reserved
using the popular smartphone app WeChat.
New vehicles are set to follow early next
year. Certain Porsche Lifestyle products
and driving experiences are also offered
online through the Porsche flagship store
on Tmall, China's largest B2C online
marketplace.
194
Porsche Panamera 4 E-Hybrid
MODEL SELECTION AIDED BY THE DIGITAL VEHICLE FINDER FUNCTION
The Global Gallery was a second project.
Here, up-and-coming artists had the
opportunity to showcase their digital works
on displays in prominent places. The
advertising space used for this was set up
in five cities in North America, Europe
and Asia. The Global Gallery was launched
on 9 October and ran for eight weeks.
Porsche collaborated with König Galerie
for this project.
These days, close to half of all the CO₂ emis-
sions generated in the course of an electric
vehicle's life cycle are caused during its
manufacture. This includes raw material ex-
traction and processing. The second biggest
factor is the car's operation, which depends
on the energy mix, its charging and vehicle
efficiency and the driving style. Recycling
at the end of the vehicle's life cycle accounts
for the smallest share of CO2 emissions.
The IONITY joint venture is currently rapidly
accelerating the expansion of its quick-
charging network in Europe - the number of
locations is set to rise from currently just
under 400 to more than 1,000 by 2025. At
the same time, the number of charging points
is set to increase to around 7,000 in total -
Battery development between range,
performance and sustainability
KRAFTAKT
DR. FRANDAMAN MO M
TEMPO GESTATIN SPORTCH
THE CARRERA MAGAZINE REGULARLY PROVIDES THE WORKFORCE WITH INFORMATION ON THE LATEST DEVELOPMENTS
178
#4
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
179
RESEARCH AND DEVELOPMENT
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
RESEARCH AND DEVELOPMENT
Weissach Development Centre -
a driver of innovation for 50 years
Porsche celebrated the 50th anniversary
of the Weissach Development Centre on
1 October 2021. There are now 6,700 em-
ployees developing technologies, components
and vehicles at this think tank. The spectrum
encompasses everything from design and
concept development to model construction
and initial prototypes. "With the Development
Centre, we are setting the global benchmark
in automotive development. Here we are shap-
ing the mobility of today and tomorrow," says
Michael Steiner, Member of the Executive
Board responsible for Research and Develop-
ment at Porsche AG.
The wish for its own test track near to its plant
began to grow at Porsche back in the late
1950s. Ferry Porsche performed the ground-
breaking for the first construction phase of
the new proving ground on 16 October 1961.
Various test tracks were initially created on
which, among others, the Porsche 911 was
taken through to market maturity. Plans for the
construction of an integrated research and de-
velopment centre in Weissach were drawn up
in the 1960s. The idea was to pool the expert-
ise that had until then been spread across the
sites in Zuffenhausen and Weissach. Construc-
tion of the actual Weissach Development
Centre began in 1969. Porsche's Research
and Development department and its own
Motorsport division then moved to Weissach
in 1971. From the outset, the development
centre had a workforce of approximately 500.
The Porsche Style department subsequently
followed in 1972. The building in the shape of
a standard hexagon, which was developed
with optimum work and cooperation possibil-
ities in mind and remains characteristic to
this day, was then completed in 1974. At the
same time, Porsche expanded the develop-
ment centre's testing capacities. Further im-
provements here up to the mid-1980s in-
cluded a measuring centre for environmental
technology and a test building for engines
and power units. In May 1986, Porsche
opened what was then the most modern wind
tunnel in the world.
As automotive engineering advanced, the in-
frastructural demands made of the develop-
ment centre changed too. A second approach
road, a complete vehicle inspection building,
a centre for safety tests and a climatic wind
tunnel are currently under construction in
the south of the research and development
centre. By 2025, the site will have been ex-
panded by 12 hectares. It currently comprises
approximately 100 hectares.
50
1971 2021
PORSCHE
DEVELOPMENT
WEISSACH
THE SKID PAD AT THE WEISSACH DEVELOPMENT CENTRE THEN AND NOW
182
"WITH THE DEVELOPMENT
CENTRE, WE ARE SETTING
THE GLOBAL BENCHMARK IN
AUTOMOTIVE DEVELOPMENT.
HERE WE ARE SHAPING
THE MOBILITY OF TODAY AND
TOMORROW. WITH EVEN
MORE EFFICIENT AND CLEANER
DRIVES, NEW DRIVING
FUNCTIONS AND INNOVATIVE
CONNECTIVITY SOLUTIONS.
IN THIS WAY, WE CONTINUE
TO MAKE DRIVING A PORSCHE
A THRILLING, DYNAMIC
EXPERIENCE."
Michael Steiner,
Member of the Executive Board -
Research and Development
Carrera
INNOVATION MANAGEMENT AT PORSCHE
DRIVEN BY DREAMS
DER EXTREMS
The goal has been clearly defined - Porsche
is aiming to be balance-sheet CO2-neutral
all along the value chain by 2030. The sched-
ule for the company's Production and Logis-
tics departments has been systematically
aligned with this. The key role will be played
by the progress made with electromobility.
Digital services were also significantly ex-
panded last year. The main internal medium is
Carrera Online, a news platform that all the
employees can access at any time via their PC
or a smartphone app.
Carrera Online publishes up to four articles
a day that often feature additional video con-
tent. News about the latest developments
and events relating to the company and its
products can be found here, as can general
information on the company's organisation,
Porsche's Strategy 2030 and qualification
measures. The Chairman of the Executive Board
or his Executive Board colleagues regularly ad-
dress the workforce via video messages to keep
them up to date on key decisions. As such, all
the employees can find comprehensive in-
formation on all the key topics at any time.
The employees are also very
important to the company.
Porsche Communications
therefore dedicates its
attentions to them with just
as much intensity, care and
professionalism as it does with
the external stakeholders.
Transparency generates trust
Porsche Communications is highly efficient
and forward-looking. Its broad, transparent
and cross-media array of information plays
a significant part in people's positive percep-
tion of the company, the brand and its prod-
ucts. The brand's strategic orientation is also
communicated comprehensibly, both intern-
ally and externally.
The trust that Porsche's stakeholders place
in it is therefore strong, as indicated among
other things by the results of the reputation
analysis newly introduced in 2020. This trust
serves as a good basis for making a success
of transformation in these challenging times
of upheaval too.
New podcast formats
Porsche launched a podcast format that
goes by the name of 9:11 in summer 2020.
Its first season comprised 12 episodes.
Season 2 then began with episode 13 to-
wards the end of the year under review.
Once a month, Porsche's Vice President
Communications Sebastian Rudolph wel-
comes famous guests and talks with them
about interesting topics in the fields of busi-
ness, society and sport - always topics that
have some connection to the legend that is
Porsche. The 9:11 podcasts are available to
download from the Porsche Newsroom and
on the company's intranet. They can also
be found on all the usual podcast platforms,
from Apple to Spotify.
There are additionally two other podcast for-
mats to be found in the Porsche Newsroom.
In the Next Visions podcast, forward thinkers
who work on innovations and visions of the
future have their say. An English-only version
also appears under the same name, hosted
by Head of Porsche Digital Christian Knörle
and Tim Leberecht, CEO of the Berlin-based
platform House of Beautiful Business. The
Inside E podcast has a different focus. Here,
insiders offer interesting insights into the first
all-electric racing series, Formula E.
Porsche Communications is
highly efficient and forward-
looking. Its broad, transparent
and cross-media array of
information plays a significant
part in people's positive
perception of the company,
the brand and its products.
Transparently informing the employees
The employees are also very important to
the company. Porsche Communications
therefore dedicates its attentions to them
with just as much intensity, care and
professionalism as it does with the exter-
nal stakeholders.
Keeping the workforce continuously, prompt-
ly and transparently up to date regarding all
the relevant decisions, developments and
events generates trust. And this is essential,
in particular at times of transformation.
Porsche Communications has had a tried and
test tool for this to hand for years in the form
of the internal Carrera media.
Like Christophorus, the print versions of the
Carrera media are printed on FSC-certified
paper using cutting-edge methods. The
contracted printing company is likewise cer-
tified in accordance with the FSC and PEFC
sustainability standards. Mineral oil-free
Carrera
PORSCHE
Strategie 2030
4H
Carrera
#2
DYNAMIK
PERFORMANCE
arrera
ZEITREISE
#3
#1
Mission R
Turbo for ideas - innovation management
at Porsche
The ecosystem of the Carrera media family
was already hybrid in nature before the
coronavirus pandemic, featuring up-to-date
online and print offerings. The printed Carrera
Magazine and the site newspapers regularly
provide the workforce with information on
the latest developments. Background reports
go into greater depth on topics of relevance
to Porsche.
Ideas with a future are therefore needed.
Every idea is more than welcome, no matter
where it comes from within the company.
Organisational structures have been modi-
fied to this end and the prerequisites for
cross-functional, cross-departmental work
have been created. The employees are af-
forded the space they need to work creative-
ly. This lays the foundations for innovation.
The concept has found fertile soil - 80 to
100 teams or individual employees apply
themselves with real dedication every year.
Their creative suggestions range from prod-
uct improvements and production line innov-
ations to innovative digital solutions.
Not only are the test drives in a simulated
environment less expensive, save time and
involve less organisational work. It is also
possible to simulate and adapt critical situ-
ations from real road traffic during the virtual
test drives, based on the needs.
In addition to the real-time capability of the
simulations, an aspect which is at least as im-
portant is that the virtual worlds generated by
the computer produce physically realistic ef-
fects. Digitally replicated objects such as
roads, pavements, building walls and vehicles
have to have precisely the same properties as
can be found in real road traffic - only then
can they provide the camera, lidar, radar and
ultrasound systems with realistic input.
Porsche Engineering uses game engines from
the computer games industry for this. These
frameworks generate photorealistic images
and ensure that the physical behaviour of ob-
jects in computer and video games is correct.
Porsche Engineering develops and tests virtu-
ally automated driving functions with the aid
of these software packages. Together with arti-
ficial intelligence, game engines have a key
role to play, training the driver assistance sys-
tems with synthetic sensor data. This allows
any scenario and every eventuality to be gone
through in detail.
Drives simulated with the aid of game en-
gines have the advantage of it being possible
to repeat them again and again, of being
controllable and of taking less time. They are
additionally used in vehicle construction in
order to reduce the number of actual proto-
types and thus save time and money. For this,
Porsche Engineering uses its internally devel-
oped Visual Engineering Tool, which allows,
for example, questions regarding the optimum
arrangement of parts to be answered quickly
and inexpensively on the basis of CAD data
and augmented reality (AR) or virtual reality
(VR) glasses.
PORSCHE DESIGN
MANY TEST KILOMETRES ARE MOVED TO THE LABORATORY AS COMPUTER SIMULATIONS
184
Research and development
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
185
Commercially available high-voltage
battery repairs
Porsche thinks ahead - the sports car manu-
facturer has pursued a holistic approach in
the area of electric vehicles with high-voltage
batteries since the first generation of
hybrid models was rolled out in 2013. This
approach covers everything - procurement,
manufacturing, advisory services, sales, logis-
tics and recycling.
The repair concept for high-voltage batteries
likewise makes a significant contribution to
sustainability and the conservation of resources.
When developing batteries, Porsche pays at-
tention from the outset not only to efficient
manufacturing possibilities, but also to a set-
up which is so simple that the battery can sub-
sequently be repaired at qualified Porsche
Centres. Either 28 or 33 modules are installed
depending on the Taycan derivative's battery
capacity. The battery housing can be opened
and the cell modules and other components
can be replaced. A custom repair level there-
fore also offers the customer a cost advantage.
Cell modules that still work but which are no
longer suitable for use in the vehicle can be
used for stationary tasks. As part of its second-
life strategy, Porsche is working on a pilot
project that will allow high-voltage batteries
to be reused. They are dismantled down to
the module level and installed in stationary
energy carriers. A series solution is key when
it comes to the long-term, sustainable reuse
of old batteries.
Together with the Volkswagen Group and
other expert partners, Porsche continues to
optimise the existing recycling processes
with the aim of increasing the proportion of
raw materials in circulation and then using
these in new batteries.
If transportation to a suitable repair location
isn't possible, a "flying doctor" steps in. This
is a mobile high-voltage expert who repairs
faulty high-voltage batteries on-site. This
completes the seamless service network for
high-voltage battery repairs.
Last, but not least, a clear breakdown of
the tasks and responsibilities is also neces-
sary when working on the Taycan as the
first production vehicle with system voltage
of 800 volts. Porsche has defined three
qualification levels here - persons trained
in electrical engineering, high-voltage
technicians and high-voltage experts. Per-
sons trained in electrical engineering have
a basic qualification to perform standard
repairs. High-voltage technicians have
training in activating a vehicle's voltage
and in categorising and storing lithium
batteries. Their qualification also includes
the disassembly and packing of high-volt-
age batteries with a "normal" and "warn-
ing" status. High-voltage experts have the
highest level of qualification at a Porsche
Centre. Only they are authorised to per-
form work within high-voltage batteries,
handle high-voltage batteries with insula-
tion defects and prepare and pack such
batteries for transportation.
Porsche analysed priorities
and use cases to identify
the optimum battery size.
Porsche customers set great
store by driving dynamics.
At the same time, they expect
short journey times and
quick recharging when making
long-distance journeys.
HIGH-VOLTAGE BATTERY REPAIRS ARE PERFORMED AT QUALIFIED PORSCHE CENTRES
186
PORSCHE
"An innovation programme does not invest
in patents or inventions. It invests in people."
This maxim uttered by Oliver Blume in 2016
has evolved into a recipe for success. The
Innovation Management department found-
ed by the Chairman of the Executive Board
of Porsche AG is now key to securing the
future of the company. Its task is to assist
with Porsche's transformation into a digital,
electrified future and to reconcile the con-
flict between premium, performance and
luxury on the one hand and sustainability on
the other.
THE BATTERY IN THE TAYCAN COMBINES RANGE, PERFORMANCE AND SUSTAINABILITY
worlds will be created that replicate all the
relevant road situations, serving as test cases
for the driver assistance systems' algorithms
and sensors.
At Porsche Engineering, virtual
worlds will be created that replicate
all the relevant road situations,
serving as test cases for the driver
assistance systems' algorithms and
sensors. Game engines from the
computer games industry are used
for this.
A comprehensive concept has also been put
in place for the servicing of Porsche's all-
electric model as the servicing and repair
requirements of the Taycan are very different
to those of a vehicle with an internal combus-
tion engine. The repair work performed on
electric vehicles calls for specific expertise
and special tools that the Porsche Centres
need to be newly equipped with. The service
concept for electric vehicles therefore com-
prises multiple levels. The basic level is the
high-voltage base set up at a qualified
Porsche Centre. Where there is currently no
high-voltage base in the vicinity, the sports
car manufacturer sets up transregional hubs
for high-voltage vehicle repairs.
However, the sensor technology and data
processing requirements are so complex that
they far exceed the capabilities of conven-
tional development and proving methods with
physical test cycles.
a time for the employee to present their idea
in person and receive immediate feedback.
Many test kilometres are therefore moved to
the laboratory in the form of digitalisation
and extensive computer simulations. The en-
gineering services are provided by Porsche
Engineering, a wholly owned subsidiary of
Porsche AG. It has begun with the develop-
ment of the Porsche Engineering Virtual
ADAS Testing Center (PEVATEC) for this pur-
pose. ADAS stands for "advanced driver assist-
ance systems". In this laboratory, virtual
The employees can submit their suggestions
either to their own department's Innovation
Manager or via a special IT tool. The Innov-
ation Management department then arranges
Research and development
For Porsche to consider an idea an innovation,
it has to fulfil three criteria - it has to be
new and unique, it has to be profitable for
the company and it must offer a relevant
customer benefit.
If the feedback given is positive, the project
is directly initiated with next to no preliminary
work. Active initiative is required in order for
the ideas to be further developed. The idea
provider also assumes responsibility for
project management, but is, of course, given
assistance. The Innovation Management de-
partment offers assistance with methodology,
invests money if applicable and, if needed,
contacts potential development partners.
These can also be based outside of the com-
pany. In this way, the Innovation Manage-
ment department ensures that innovative
project ideas are validated in a structured
manner and, in the event of success,
can more than likely be further developed
through to series production.
To have the shortest possible paths,
Porsche AG's seven departments and
Porsche Digital GmbH each appointed
one or two employees to Innovation
Management. The team pursues a defined
innovation agenda to focus its activities
on the future topics that are the most
relevant to Porsche. The target has been
clearly set the company has earmarked
15 billion euros to be spent on electro-
mobility, digital transformation and
sustainable production up to 2025. Of this,
more than 800 million euros a year will be
spent on digitalisation.
the Chairman of the Executive
Board of Porsche AG is now
key to securing the future of
the company.
Thinking about innovations is not limited to
Porsche as a company. There is a focus in
particular on collaboration with start-ups
and universities. In some cases, Porsche also
invests directly in up-and-coming companies
or launches initiatives to expedite digitalisa-
tion. More than 150 million euros a year
has been earmarked for investment in start-
ups and venture capital companies. Porsche
Ventures was set up as an ecosystem
which can support every start-up, no matter
whether there is currently only the idea
or whether there have already been some
financing rounds. This ecosystem includes
the company builder Forward31 and the
earliest-stage investor APX, a 50:50 joint
venture with Axel Springer, both of which
are based in Berlin. With the venture capital
unit Porsche Ventures and Porsche Digital
GmbH, the company is always on the lookout
for new start-ups that will strategically ad-
vance the brand.
Porsche's pioneering spirit extends far be-
yond its core topic of sports cars. With the
initiative for the major eFuels project, the
sports car manufacturer triggered the pro-
duction of synthetic fuels. These have the
potential to be almost entirely CO2-neutral.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
183
MICHELIN
Esso
The Innovation Management
department founded by
With the methanol-to-gasoline (MTG) pro-
cess intended for use in the Haru Oni project,
the consortium is initially focusing on fuels
for petrol engines. Generally speaking, the raw
materials water and carbon dioxide are need-
ed to produce eFuels. Hydrogen is produced
by means of electrolysis, while carbon dioxide
is extracted directly from the air by means of
what's known as direct air capture. Here, huge
fans blow ambient air through filters and the
carbon dioxide in the atmosphere then accu-
mulates in the filters. Methanol synthesis is
Digital validation of driving functions
Sporty performance and automated driving
in one and the same car - approximately
one in four Porsche customers in the key
Porsche markets around the world is consid-
ering buying a vehicle which can itself take
on the responsibility of driving in certain
situations. The sports car manufacturer is
therefore working intensively on concepts
and technologies that will enable automated
driving functions.
In a subsequent step, the virtually CO₂-
neutral fuel is refined such that it complies
with the current fuel standard DIN EN 228.
It can then be used directly in any petrol en-
gine or be added to a fossil fuel. In principle,
it would take only comparatively minor modi-
fications to the plant for it to be able to also
turn e-methanol into, for example, e-kerosene
for aircraft.
used to turn H₂ and CO2 into e-methanol
(CH₂OH), with MTG synthesis then being
applied to turn this into synthetic naphtha.
The pilot plant is expected to produce
around 130,000 litres of eFuels a year from
2022. Porsche will buy this entire volume
and will initially use the green fuel primarily
in its motorsport activities. In addition,
Chile has set itself ambitious goals as part
of its national strategy for green hydrogen.
These include producing the world's most
affordable hydrogen and turning itself into
a leading exporter of green hydrogen and
its derivatives.
Low costs for renewable energy are key to
quickly making eFuels competitive. The wind
turbine at the pilot plant site has a very high
capacity factor of 74 per cent full load hours.
But in addition to the resultant low energy
costs for the production of eFuels in Chile,
the price and therefore also the commercial
success are determined by taxes and levies.
The more the prices of fossil fuels and eFuels
are brought into line with one another in the
future by means of regulatory measures such
as energy taxes or CO2 pricing, the quicker
eFuels will become competitive.
With eFuels, existing vehicles can play their
part in a quick CO2 reduction too. "We urgently
need a solution for the sustainable operation
of the existing fleets," emphasises Michael
Steiner, Member of the Executive Board re-
sponsible for Research and Development at
Porsche AG. "This goal can be achieved with
green fuels. They are a sensible addition to
electromobility." There are additionally other
transport sectors in which these fuels could be
used such as aviation and the shipping in-
dustry, which are difficult to electrify, if at all.
Production at the pilot plant in Chile is
scheduled to start in mid-2022. In addition
to Siemens Energy and Porsche, those in-
volved in the Haru Oni project include the
Italian energy company Enel, ExxonMobil
and the Chilean energy companies Gasco,
ENAP and AME, which is the primary devel-
oper and the owner of the project company
HIF (Highly Innovative Fuels).
eFuels complement e-mobility
Filling up on electricity is possible thanks to
eFuels - the go was given in late summer
2021 for the construction of the first factory
to be co-initiated by Porsche for the produc-
tion of a synthetic fuel. This has the potential
to be almost entirely CO2-neutral. The Haru
Oni joint project involving Porsche, Siemens
Energy and other international partners is
the world's first integrated and commercial
plant for the production of synthetic fuels.
It makes use of the optimum climatic condi-
tions for wind power found in the southern
Chilean Magallanes Province to produce syn-
thetic fuel with the aid of sustainably gener-
ated electricity.
THE PORSCHE 911 GT3 CUP VEHICLES IN THE 2021 PORSCHE MOBIL 1 SUPERCUP WERE POWERED BY RENEWABLE FUELS
RACING FUEL
Synergy
inks are used for printing and the energy used
is 100 per cent renewable.
PROCUREMENT
Volatile supply chains
The Procurement department is a key inter-
face at Porsche. Its purchasing volume ex-
ceeded nine billion euros in the last financial
year, equating to approximately 80 per cent
of the company's value creation. Procure-
ment therefore has a significant influence on
environmental protection and sustainability
beyond the factory gates. Together with its
partners, Porsche is committed to achieving
a shift in personal mobility in the direction of
balance-sheet CO2 neutrality. The company's
good collaboration with the suppliers is
demonstrated by the successful launches of
the new passenger vehicle production models
911 GTS, 911 Targa GTS, 911 GT3, 911 GT3
Touring, Boxster 25 years, Cayenne Turbo GT,
Macan Facelift, Taycan Cross Turismo and
Taycan Sport Turismo.
The entire industry was hit by shortages in
the semiconductor market in 2021. At the
same time, demand for microchips increased
and vehicle production in the automotive
industry consequently slowed down. Porsche
established a task force within Procurement
early on. This engages in ongoing commu-
nication with the Volkswagen Group, chip
suppliers and tier 1 suppliers. Lessons were
learned from the supply shortages - the im-
pact of material shortages, logistics issues
and geopolitical influences on Porsche's parts
procurement is to be identified and mitigated
One example here is collaboration with the
suppliers. Previously, a number of experts
had to travel to a supplier in order to opti-
mise or audit the processes. Now only one
Porsche employee is on the road, equipped
with data glasses that they put on at the
destination.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
206
207
on the basis of greater supply chain trans-
parency. Possible countermeasures include
building up parts inventories and making
use of alternative components. Intensive
communication with potentially critical sup-
pliers has an important part to play here.
Barbara Frenkel began her career at Porsche
in 2001 as Head of Quality Systems and
Methods. Following various management
positions, she became of Head of European
Sales in 2017. She increased the retail
volume in Porsche's third-largest sales
region by around 10 per cent and played a
significant part in further developing the
dealer organisation. Barbara Frenkel was
also a member of the Porsche AG Super-
visory Board from 2019, a position which
she stepped down from upon accepting
the Executive Board role.
Uwe-Karsten Städter,
Member of the Executive Board -
Procurement
Porsche is increasingly
embedding its processes in
universal end-to-end logics.
This is strengthening
cross-departmental work
and placing the overall
company perspective at the
forefront of its actions.
(until 18 August 2021)
Change in department leadership
The head of the department changed in
August 2021 when Uwe-Karsten Städter
went into retirement. He had been the
Porsche Executive Board member respon-
sible for Procurement for 10 years. In all,
Städter worked for the Volkswagen Group
for 47 years. He was succeeded by Barbara
Frenkel. Oliver Blume, Chairman of the
Executive Board of Porsche AG, comments
as follows on the change in leadership:
"Uwe-Karsten Städter is one of the most
experienced purchasing experts in the auto-
motive industry. Porsche's procurement was
prepared for the challenges of transformation
in an exemplary manner both operationally
and strategically under his leadership. In
Barbara Frenkel, we found a highly capable
successor within the company ranks."
FAR FROM BEING A STOPGAP MEASURE, DIGITAL SUPPLIER INSPECTION DELIVERS EXCELLENT RESULTS
BARBARA FRENKEL AND UWE-KARSTEN STÄDTER AT THE PORSCHE MANAGEMENT CONFERENCE
A new kind of collaboration
LEAN & GREEN MANAGEMENT AWARD 2021 FOR THE LEIPZIG PLANT
For the department employees, the last finan-
cial year was characterised by mobile working.
"As was also the case in 2020, protecting
people's health took priority. A large proportion
of the employees therefore worked almost
entirely from home again in 2021," says
Barbara Frenkel, Member of the Executive
Board responsible for Procurement. "This was
challenging for everyone - but it worked very
well. We see opportunities in the crisis - we
identified benefits for our organisation from
using digital communication technologies and
we intend to maintain and develop them."
"PROCUREMENT IS READY
FOR THE CHALLENGES
OF TRANSFORMATION -
WE ARE SEIZING OPPOR-
TUNITIES AND ACTIVELY
SHAPING THE COMPANY'S
AUTOMOTIVE FUTURE."
Porsche Leipzig expands its training centre
The Leipzig site opened the extension of its
training and qualification centre right on
time for the start of the new training year.
The 1,600-square-metre extension directly
adjacent to the existing building comprises
training and communal rooms. Vocational
training has grown together with the Porsche
factory - when the first Porsche Cayenne
rolled off the production line in 2002, there
were five trainees at the site; there are now
more than 120. The training centre built in
2017 has been extended in order to adapt
the training to the ever-changing conditions
in the automotive industry. This will result
in some significant advantages. Until now,
the training workshop for industrial mechanics
and mechatronics engineers was located
in Assembly. Thanks to the extension, all
the apprenticeship trades are now together
under one roof. The new premises also
offer space for the qualification and further
training of employees with career experience.
Training with robots and CNC machines can
therefore be expanded.
205
The decision to produce
the next generation of the
Macan as an all-electric
variant in Leipzig means
that Porsche is investing
around 600 million euros
ANUC
New production process at
The co-workers in Rutesheim or Weissach
can then gain the same impression as the
employee in the field thanks to a live stream.
Far from being a stopgap measure, digital
supplier inspection delivers excellent results
and will continue to be used by Porsche's
Procurement department in the future.
the Taycan paint shop
Porsche has developed a new production
process in Zuffenhausen in cooperation with
Tesa SE at the Taycan paint shop, the body-
work holes needed for corrosion protection
are now sealed much more effectively; these
holes are needed so that the paint shop can
reach all the hollow spaces. The innovative
solution involves the plastic plugs previously
used being replaced with sticky pads. The
all-electric Taycan is the first vehicle in the
world to feature this new process. A robot
automatically, quickly and reliably positions
more than 100 sticky pads and seals the
bodywork holes, thereby optimising the
efficiency of Porsche production. The paint
shop at the plant in Leipzig was likewise
transitioned to this innovative process in
the year under review.
At the Taycan paint shop,
the bodywork holes needed
for corrosion protection
are now sealed much more
effectively. The previous
plastic plugs have been
replaced by sticky pads.
Near-natural company grounds at
the main site in Zuffenhausen
On the occasion of World Environment Day
on 5 June 2021, Porsche presented the
first section of land on its way to making the
company grounds at the main site in Zuffen-
hausen near-natural. Approximately 2,000
square metres of space which was previously
occupied by the plant's vehicle sales was
environmentally upgraded. The new green and
blooming environment offers the main plant's
neighbours natural noise control. At the same
time, the company is voluntarily opening this
space up to the public - the area serves the
neighbours as recreational space and offers
the employees better sojourn quality.
At its site in Leipzig, Saxony, Porsche has
been applying a unique grazing concept
across its 132-hectare off-road site since
2002. With its specially created ponds,
wetlands and grazing land, the site offers
a natural habitat for numerous types of flora
and fauna.
Sales, production and procurement
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
FINAL ASSEMBLY OF THE PANAMERA AT THE LEIPZIG PLANT
The Porsche plant in Leipzig
received a Lean & Green
Management Award in 2021.
The competition recognises
the most successful lean
management approaches
together with environmental
and sustainability aspects.
Lean & Green Management Award 2021
for the Leipzig plant
The Porsche plant in Leipzig received a Lean
& Green Management Award in the category
Automotive OEM in 2021. The jury awarded
the Porsche site in Saxony the distinction
Lean & Green World Class. The competi-
tion recognises the most successful lean
management approaches together with
environmental and sustainability aspects.
Two hundred and fifty plants from more
than 10 countries and 20 industries entered.
The Leipzig plant made an impression first
and foremost with the Porsche improvement
process, which is firmly embedded in the
production system, and with its resource
efficiency programme. The processes are
regularly scrutinised in environmental and
energy audits in order to achieve continuous
improvement. From 2014 to 2020, resources
worth just under 3.5 million euros were
saved thanks to the implementation of such
measures. With the Leipzig factory's own
"Environmental impact reduction in Produc-
tion" performance indicator, the plant serves
as a benchmark for the automotive industry.
The plant also scored points for its high
degree of transparency regarding the con-
sumption of resources and its needs-based
control, for example in the area of lighting.
Production in Leipzig
Around 550 vehicles from the Macan and
Panamera model series were produced
on a daily basis at the Porsche plant in
Leipzig. Meanwhile, the site is also shaping
up for electromobility. The decision to
produce the next generation of the Macan
as an all-electric variant in Leipzig means
that Porsche is investing around 600 million
euros in the site in Saxony. With this latest
plant expansion, the company is creating
the possibility of producing fully electric
vehicles on the existing production line
alongside petrol and hybrid models in future.
In addition, another important step was
taken in the direction of a smart factory
in 2021 - a private 5G research network
was put into operation together with
Ericsson. The first of its kind in the Porsche
production environment, it will pave
the way technologically for the factory of
the future. The 5G network creates the
basis for the instantaneous and secure
transfer of data between people, machines
and vehicles.
The Porsche site in
Leipzig is shaping up for
electromobility.
in the site in Saxony.
Porsche actively supported its suppliers in
the last financial year. The partners supply
jointly developed parts, some of which
are highly specialised. For this reason too,
Porsche does not abandon its partners in
a crisis. For example, in the case of small
and medium-sized suppliers in particular,
the sports car manufacturer made part
payments for development costs and tools
ahead of the contractually agreed deadlines.
electric
Sales, production and procurement
TTER WAY FORWARD
FINANCIAL ANALYSIS
Net assets
Financial position
Results of operations
Dec. 31, 2021
%
Dec. 31, 2020
%
211
6,190
5,437
12
Property, plant and equipment
Leased assets
8,763
17
8,695
3,954
NEW PRODUCTION PROCESS USES STICKY PADS INSTEAD OF PLASTIC PLUGS
8
12
THE STARTUP AUTOBAHN CONCEPTS ARE PRESENTED AT EXPO DAY
Sales, production and procurement
210
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
209
INDONESIAN RUBBER FARMERS ARE OFFERED TRAINING IN PRODUCTION PRACTICES, BIODIVERSITY AND OCCUPATIONAL HEALTH AND SAFETY
A sustainable and transparent supply chain
Porsche is also shaping the path to greater
sustainability on the basis of partnership with
its suppliers. Transformation in the direction
of electromobility will increase the supply
chain's share of the company's CO₂ footprint
from the current 20 per cent to around 40 per
cent by 2030. To counteract this, Porsche has
required its series suppliers to use renewable
energies for all contracts newly awarded
since July 2021. This has been the case for
its battery cell suppliers since 2020. An add-
itional approximately 1,300 series suppliers
will now gradually follow. This measure is an
important step in further reducing the CO2
emissions caused by the supply chain.
Since 2019, the suppliers have been bound
not only by costs and quality, but also by
sustainability criteria. This is documented in
the sustainability rating, or S-rating for short.
A large proportion of the suppliers that have
submitted a tender for a contract already
meet the Porsche requirements. In addition,
the Porsche procurers discussed concepts
and innovations with suppliers in the last
"PROCUREMENT HAS
A CLEAR SUSTAINABILITY
STRATEGY, WHICH WE
ARE IMPLEMENTING
TOGETHER WITH OUR
DIRECT SUPPLIERS. WE ARE
GENERATING IMPORTANT
MOMENTUM ON THE WAY
TO ACHIEVING BALANCE-
SHEET CO₂ NEUTRALITY."
Barbara Frenkel,
Member of the Executive Board -
Procurement
(since 19 August 2021)
financial year in what are known as sustain-
ability dialogues. Together, they defined
concrete CO₂ reduction measures.
As part of Porsche's comprehensive sustain-
ability strategy, procurement is also about
good labour conditions, anti-corruption and
the upholding of human rights throughout
the supply chain. The company has therefore
been a member of the Responsible Mica
Initiative (RMI) since 2020, which champions
better mining conditions in relation to the
raw material mica. These pigments feature
among other things in car paints and are
primarily mined in India. The RMI ran projects
in 80 villages in the primary mining regions in
Jharkhand and Bihar in the last financial year
with the aim of establishing appreciation of
more sustainable mining methods and offer-
ing the mine workers better prospects in life.
Since 2021, Porsche has been assuming
responsibility with a position on the RMI
Board of Directors - the company actively
helps shape the initiative's strategy. Among
other things, Porsche is developing cross-
industry mica mining standards.
Together with the tyre manufacturer Michelin,
Porsche also promotes sustainable natural
rubber production. The two companies are
championing transparency and better labour
conditions in the production of this raw
material in Sumatra, Indonesia, through the
CASCADE (Committed Actions for Small-
holders Capacity Development) project.
The local smallholders are offered training
in production practices, biodiversity and
occupational health and safety with the aim
of improving their livelihoods and economic
situation in the long term. Indonesia is one of
the world's primary rubber producers. Based
on analyses and talks held locally, Porsche
and Michelin identified potential supply chain
risks related to rubber production. CASCADE
is one of the first projects in the world to
tackle the lowest level of the natural rubber
supply chain. More than 1,000 smallholders
are being given training to make their
production methods more environmentally
friendly and more efficient. Porsche and
Michelin are investing some one million
euros in the project which is initially set to
run until 2024.
The innovative pilot project Prewave helps
to identify sustainability risks in the supply
chain. Porsche is making use of artificial intel-
ligence (AI) here. The Prewave system can
forecast such risks in the lower supply chain
levels, with the technology analysing supplier-
related news in more than 50 languages.
The news is sourced from publicly access-
ible media and social networks in more
than 150 countries. As such, Al is serving
as a proactive early-warning system for
violations of the company's sustainability
requirements. The Procurement department
then examines the matter and possibly
introduces countermeasures.
In 2021, the Volkswagen Group signed up
to the cross-industry initiative Catena-X.
This cloud-based data ecosystem is open
to companies in the European automotive
industry as well as their suppliers and
partners. Its purpose is the secure exchange
of data and information all along the value
chain. Its aim is to make supply chains more
transparent, more sustainable and more
efficient on the basis of uniform standards
and shared principles. Twenty-eight com-
panies and organisations are Catena-X
consortium partners, including all the major
German automobile manufacturers.
Process efficiency and innovation
management
Greater efficiency is also the focus of the digit-
alisation of the Procurement department
itself. The employees have been working with
chatbots since 2021. These little communi-
cation programs give automated responses
to questions, thereby eliminating research on
the part of the employees. Bot technology
has been further developed with the Porsche
Procurement Assistant (PPA). Attractive
bot programs are in use within the complex
SAP system, lightening the Porsche pro-
curers' workload. These programs support
the most common operating steps and,
if necessary, also see to standard routines
themselves. Up to 90 per cent of mouse
clicks can be eliminated thanks to PPA. The
system is now significantly more user-friendly.
In particular, it enables new employees
to find their feet in company-specific work
processes more quickly.
Porsche is reducing the time between an idea
and the product with innovation management
which is applied across all departments.
The Procurement department is making an
important contribution here with the Startup
Autobahn innovation platform. This forges
contacts with innovative young businesses.
The company founders are then given the
opportunity to expedite ideas together
with Porsche experts for several months.
The concepts developed are presented
twice a year during an Expo Day. The feed-
back has been positive to date, Porsche
has initiated approximately 80 projects
as part of Startup Autobahn. Around a third
of these has led to a concrete product or
service for Porsche customers. Innovation
management and Startup Autobahn are key
components of Strategy 2030 and continue
to be further developed.
The same goes for the traditional procure-
ment work steps - Porsche is increasingly
embedding its processes in universal end-
to-end logics. This is strengthening cross-
departmental work and placing the overall
company perspective at the forefront of its
actions. A good example here is Purchase-
to-Pay the company is creating a universal
process across procurement, production
and finance that encompasses everything
from the requirements and purchasing to
goods inward and invoicing. This method is
expected to have optimisation potential
of around 10 per cent up to 2030. Porsche
intends to apply end-to-end logics to a
further 12 core processes by 2030.
MART
208
K
NEW
eans
THE PAINT SHOP IN ZUFFENHAUSEN CAN ALSO CATER TO SPECIAL COLOUR REQUESTS
199
Open stage at the IAA
An open-space appearance instead of
a traditional trade show stand - in keeping
with the new concept of IAA Mobility in
Munich, Porsche received fans and visitors
interested in innovative mobility in exhibition
space which was open to the public, on
Wittelsbacher Platz square. Numerous star
guests came to the stage to present
the Porsche product range and the latest
developments from Weissach, including
Hollywood actor Michael Fassbender
("X-Men"). The German-Irish hobby racing
driving has been competing for the past two
years, including in the European Le Mans
Series in a Porsche 911 RSR. Another
highlight was the "Dreamers. On." live talk.
Sara Nuru, Tim Bengel, Patrick Dempsey,
Johann König and Alvaro Soler talked to
moderator Steven Gätjen about their journeys
through life and their dreams and about how
they made their dreams come true.
Porsche Asia Pacific growth
Porsche is expanding its presence in
South East Asia's emerging markets with a
number of projects. For example, Porsche
Asia Pacific and Shell are installing the
first cross-border charging network in South
East Asia comprising 12 charging points
at six Shell filling stations. And together
with its partner of many years Sime Darby
Berhad, the sports car manufacturer is
developing a local vehicle assembly line
in Malaysia.
At the beginning of August, the first South
East Asian edition of the event format
SCOPES Driven by Porsche celebrated
its premiere. The exchange of ideas was
held virtually this time. In the course of
two months, visionaries, artists and young
entrepreneurs told inspirational stories in
documentaries, workshops, podcast series,
interactive live panels and talks.
Three new PECs around the world
Porsche opened its eighth and ninth Porsche
Experience Centres (PEC) in northern
Italy and Tokyo respectively in autumn. The
new brand experience venue in Franciacorta,
Italy, is approximately 60 hectares in size
and includes a handling circuit with three
different training areas. The customer centre
is futuristic in design. The drivers' paddock
featuring 29 garages is for motorsport events
such as the Porsche Carrera Cup Italia.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The new PEC Tokyo is 43 hectares in
size. Its 2.1-kilometre track recreates
famous corners such as the Nürburgring's
Carousel. The PEC also offers six driver
training modules, including a demanding
off-road course.
PORSCHE
TALD
永源
PORSCHE EXCLUSIVE MANUFAKTUR COMPLETED ITS FIRST SONDERWUNSCH VEHICLE PROJECT
PORSCHE
PORSCHE INVITED PEOPLE TO AN OPEN SPACE IN MUNICH INSTEAD OF TO A TRADITIONAL TRADE SHOW STAND
First Sonderwunsch vehicle completed
Paolo Barilla became the first customer to
realise a vehicle project together with
Porsche Exclusive Manufaktur as part of
the Sonderwunsch programme. The Italian
businessman was the overall winner of
Le Mans in 1985. On the occasion of his
60th birthday, he helped design a highly
individual Porsche 911 GT3 (992) and was
heavily involved in its creation. This special
vehicle is based on his Le Mans winning
car in addition to the characteristic racing
look in Summer Yellow, white and black,
the Porsche sports the winning start num-
ber 7 on its bonnet and doors. Other details
such as the rear wing and gearshift lever
were likewise reinterpreted and in part
developed independently. Under the new
Sonderwunsch programme, the customer
took on the role of project manager. Barilla
worked directly on realising his dream car
as a member of the project team comprising
Porsche Exclusive Manufaktur experts and
the Style Porsche design division. The pro-
cess took a total of three years, from the first
design ideas to technical feasibility checks
and construction.
Porsche supports kitesurfing
Since November 2021, Porsche has been
sponsoring the renowned Red Bull King
of the Air competition in Cape Town, in
which the world's best kitesurfers compete
to perform extreme jumps. The sports car
manufacturer is additionally cooperating
with the kitesurfing brand Duotone. The
company has also signed two professional
athletes, Liam Whaley and Rita Arnaus,
as kitesurfing representatives. "Kitesurfing
is all about athleticism, precision and
pushing boundaries - which is why this
sport is a perfect fit for Porsche," says
Robert Ader, Vice President Marketing at
Porsche AG. "We see great potential in
kitesurfing as a way to work with attractive
brands and to appeal to new target groups."
This engagement complements Porsche's
long-standing sponsorship of tennis
and golf.
Version 2.0 of the Duotone Academy App
is the first result of the cooperation
with Duotone and has been available from
Google Play and the App Store since
14 December 2021.
The tenth PEC is under construction in
Toronto, Canada, and is scheduled to
open in 2024.
Sales, production and procurement
198
PORSCHE AND THE FASHION LABEL AIMÉ LEON DORE (ALD) REFASHIONED A VEHICLE TOGETHER
3,614
The 911 between heritage and fashion
Porsche and the fashion label Aimé Leon
Dore (ALD) refashioned a vehicle together
once again. The restored 911 Super Carrera
celebrated its live premiere at the brand's
flagship store in New York City from 21 to
23 May. This 911 is characterised by olive
paintwork, additional headlights on the
bonnet, Fuchs wheels and a roof rack.
To tie in with this, ALD released a capsule
collection. The 911 SC is the second vehicle
to be created in the course of the partner-
ship. Their first joint project in 2020 was a
restored 911 Carrera 4 (type 964).
Porsche Deutschland's first NFT auction
An exclusive design sketch by Exterior
Design Director Peter Varga was auc-
tioned off as a non-fungible token (NFT)
in August. The work of art features two
milestones in Porsche's history combined -
the Taycan Cross Turismo and the 911.
Collectors and Porsche fans had the
opportunity to buy the design sketch via
the US platform SuperRare. The proceeds
at the end of the auction came to 30.25
ether (ETH), which equates to around
80,000 euros. The physical original was
auctioned off too. All the proceeds were
donated to the non-profit organisation
Viva con Agua.
Porsche and the fashion label
Aimé Leon Dore refashioned
a vehicle together once again.
The 911 Super Carrera
celebrated its live premiere
at the flagship store in
New York City.
Artistic consideration of dreams
The Art of Dreams was conceived as a series
of interactive pop-up installations. The
designs and works of art consider dreams as
their motif from a variety of angles. The
French artist Cyril Lancelin kicked off the
series with his work "Remember your dreams".
The large inflatable installation could be
experienced at the Palais Galliera, Musée
de la Mode de la Ville de Paris, from 15 to
24 October. The series of interactive pop-up
installations will continue in cities of culture.
The next planned stop for The Art of Dreams
is an exhibition in Milan in summer 2022.
The agencies Gravity and Peak are supporting
Porsche with this project.
Young film-makers recognised
Exactly 178 entries were submitted to the
"Porsche Awards 2021 - For Young Talents
in Advertising". The jury selected the
winners in mid-July. The winner of the Short
Advertising Content category was the
Polish entry Tight Frame directed by
Katarzyna Jarecka and Jakub Skitek. The
Long Advertising Content category was won
by the team responsible for Get married
again, directed by Eugen Merher. The Driven
by Dreams category is based on Porsche's
eponymous brand purpose and features films
that encourage us to believe in our dreams.
The winner here was the English film Absent
directed by Libby Burke Wilde.
Partnership with TAG Heuer
Porsche and the Swiss luxury watchmaker
TAG Heuer agreed on a strategic brand
partnership in early 2021. The premium manu-
facturers intend to jointly develop products
under this comprehensive and long-term
alliance. As a first step, the partners unveiled
a new watch the TAG Heuer Carrera
Porsche Chronograph. TAG Heuer has been
the Porsche Formula E team's title and
timing partner since 2019.
Cooperation with fashion designer
Porsche collaborated with Olivier Rousteing
on its communication of the Panamera
models. A video series available in social
media tells the extraordinary personal story
of the current Creative Director of the Paris
fashion label Balmain. Olivier Rousteing was
born in 1985 and was later adopted from
an orphanage. He attended the fashion school
École supérieure des arts et techniques
de la mode (ESMOD) in Paris, then became
As a first step in the strategic
brand partnership with
TAG Heuer, a new watch was
unveiled - the TAG Heuer
Carrera Porsche Chronograph.
Creative Director of Balmain in 2011,
aged just 25 - making him the youngest
creative director of a Paris fashion house
since Yves Saint Laurent.
Taycan Artcar by Richard Phillips
The auction house RM Sotheby's auc-
tioned off the Porsche Taycan Artcar
created by New York artist Richard
Phillips for 200,000 US dollars. More
than 50 bids were submitted for the work
of art on wheels. Porsche Schweiz AG
donated the entire proceeds to the Swiss
non-profit organisation Suisseculture
Sociale. In this way, Porsche and its pro-
ject partners are supporting Swiss
creative artists, a sector which has been
especially hard hit by the COVID-19
pandemic. To create the Taycan Artcar,
the artist applied his large painting
"Queen of the Night" to the body of
a Porsche Taycan 4S. The Artcar was also
further customised by the Porsche Exclu-
sive Manufaktur.
First study specifically for a video game
One of the automotive stars of Gran Turismo 7
is the new Porsche Vision Gran Turismo.
This virtual racing car was jointly developed
by Porsche and the video game development
studio Polyphony Digital Inc., a subsidiary
of Sony Interactive Entertainment. The four-
wheel drive vehicle's technical attributes
include a high-performance electric power-
train with up to 950 kW of overboost power
together with launch control.
Gran Turismo 7 is the latest version of the
popular driving and racing simulation.
The game developed for the PlayStation 4
and the new PlayStation 5 will be released
on 4 March 2022. Porsche sports cars
have featured in the software since 2017,
the most recent vehicle being the Taycan
Turbo S.
The Vision Gran Turismo is Porsche's
first concept study specially developed
for use in a computer game. Exhibiting
the brand's typical proportions, the study
takes familiar Porsche design elements
into the future.
200
200
150
100
50
50
300,081 1,2
0
2017
Production figures from 2019 exclude pre-series vehicles;
figures up to 2018 include pre-series vehicles.
2018
2019
2020
2021
2 Incl. 16,953 vehicles not yet eligible for registration at the time
of factory delivery as a result of the semiconductor shortage.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
203
Smart press shop goes into production
The smart press shop, a joint venture of
Schuler and Porsche, went into operation in
mid-2021. The press shop in Halle is one of
the most state-of-the-art and most innova-
tive of its kind in the world. The aim is, in
particular, to achieve even greater dovetailing
of design, development, body planning, tool
manufacture and production, and to make
the logistics paths more efficient and, above
all, balance-sheet CO2-neutral. The smart
press shop also expands the conventional
business line of a press shop with the add-
ition of what's known as laser cutting tech-
nology. This innovative technology is an ideal
solution for manufacturing small batches of
aluminium body parts.
Assembly capacities in Malaysia
In Asia, Porsche has its sights set on value-
creating growth. The company is therefore
increasing its presence in South East Asia's
emerging markets - the first cross-border
high-performance charging network is being
developed together with Shell and the sports
car manufacturer is also expanding its pro-
duction network with the addition of a local
assembly line in Malaysia. This was devel-
oped together with its long-term partner
Sime Darby Berhad and expands Porsche's
European production network. From 2022,
Cayenne models which are specially and
exclusively tailored to the Malaysian market
will be produced in the Kulim District. A part-
nership has now existed with Sime Darby for
10 years. The company is an importer and
dealer for Porsche in Malaysia. As a founding
member of ASEAN, Malaysia offers good
business and development opportunities.
The island country also has a well-developed
and established automotive industry.
Production in Zuffenhausen
At the main plant in Zuffenhausen, an
average of more than 400 vehicles rolled off
the production line every day - more than
ever before in spite of the semiconductor
shortages. A sophisticated control and pro-
duction principle allows the assembly of all
twodoor sports cars - the 911, 718 Boxster
and 718 Cayman model series - on one
production line. Highly individual customer
wishes can be integrated directly into series
production thanks to the flexible production
system. Put simply, no two vehicles are
exactly the same. This also applies to the
Taycan, which is produced in its own factory
within the factory - without a conventional
assembly line.
250
204
255,683
268,691
Sales, production and procurement
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
201
PRODUCTION
2021 was another year full of challenges.
Total production was 300,081 vehicles,
which corresponds to an increase of
14 per cent compared with the previous
year. For the first time, vehicle production
at both sites was entirely balance-sheet
CO2-neutral as the Leipzig site followed in
the footsteps of the main plant, which
had already switched to balance-sheet
CO2-neutral production in 2020. A total of
38,474 Taycan vehicles were manufactured
in Stuttgart-Zuffenhausen. Additionally, all
the vehicles of the 911 (38,790 units),
718 Boxster (11,726 units) and 718 Cayman
(6,751 units) model series rolled off the
production line at the main plant.
At the Leipzig plant, the company produced
a total of 118,107 vehicles, which equates
to more than one third of Porsche's total
production. There were 84,857 units of the
Macan model series and 33,250 Panamera
produced in Saxony.
At the Volkswagen Group's multi-brand
site in Bratislava, Slovakia, 86,233 units
of the Cayenne model series were
produced.
"WE ACHIEVED A RECORD
RESULT IN 2021 IN SPITE
OF ALL THE CHALLENGES.
THIS SHOWS HOW
EFFICIENT THE PORSCHE
FAMILY IS. MANY THANKS
FOR THE PASSION,
PROFESSIONALISM AND
TEAM SPIRIT."
Albrecht Reimold,
Member of the Executive Board -
Production and Logistics
Successful crisis management
The coronavirus pandemic remained the
primary challenge in the year under review.
In addition, a global shortage of semicon-
ductor capacities presented the company
with some major difficulties, with creative
solutions being called for in particular in
the Production department. Together with
the Volkswagen Group's task force and all
of the Porsche Group departments, a real
effort was successfully made to minimise
the impacts. Our vehicle models' production
planning was optimised and managed in
such a way that the Zuffenhausen and Leipzig
plants only had to temporarily reduce their
production. Additionally, in the first half
of the year in particular, operation of the
Volkswagen plant in Bratislava had to be
modified only to a minor degree.
Early communication with our partners and
suppliers was important. Daily conference calls
were held, sometimes involving more than
100 participants that included finance special-
ists, logisticians and procurement experts.
Porsche continuously consulted all the part-
ners. The experience gathered and agility were
used to rethink and redesign processes.
SIEMENS 21
VEHICLE PRODUCTION UNDER SPECIAL CORONAVIRUS SAFEGUARDS
202
300
Production volume
Vehicles
274,4631
263,2361
8
11
573
Other provisions
1,184
2
939
2
Deferred tax liabilities
782
2
685
13
2
6,599
13
5,668
12
633
1
285
1
645
Financial liabilities
5,932
FRÉDÉRIC ARNAULT (TAG HEUER) AND DETLEV VON PLATEN (PORSCHE AG)
5,525
Net assets
of the Porsche AG Group
€ million
Assets
Intangible assets
Other receivables
Deferred tax assets
Non-current assets
Inventories
Trade receivables
Financial services receivables
Other financial liabilities
Other liabilities
Non-current liabilities
Provisions for taxes
Tax payables
Current liabilities
216
Equity and liabilities
Equity
22,935
45
20,224
44
Provisions for pensions and similar obligations
1
473
1
15,368
2,959
7
Other liabilities
1,486
3
1,331
3
65
0
43
0
13,079
25
11,285
25
51,382
100
45,491
100
Financial analysis
217
7
Current other financial liabilities amounted to
€ 3,638 million (prior year: € 2,959 million).
The increase primarily relates to the € 607
million increase as a result of marking deriva-
tive financial interests to market.
3,638
5
30
13,982
31
126
0
111
0
Other provisions
2,189
4
1,849
4
Financial liabilities
3,128
6
2,657
6
Trade payables
2,447
5
2,335
Other financial liabilities
Equity-accounted investments
Non-current and current financial liabilities
increased from € 8,325 million to € 9,727
million. This increase largely relates to the
refinancing of the financial services business
in the form of asset-backed securities
transactions, while the debenture bonds
decreased thanks to a partial repayment.
Deferred income tax liabilities amounted to
€ 782 million compared to € 685 million in
the prior year.
2
32,830
64
30,395
67
4,517
9
4,108
9
817
1,199
1,081
2
1,081
2
1,122
3
Other financial assets
5,353
11
2
2
867
0
1
167
0
Other equity investments
313
1
217
1
Financial services receivables
3,461
7
2,414
5
Other financial assets
8,596
16
8,870
20
113
0
164
2,761
6
Other receivables
579
33
100
NET ASSETS
As of December 31, 2021, the total assets of
the Porsche AG group stood at € 51,382 mil-
lion, 13 per cent higher than on the prior-year
reporting date.
Non-current assets increased by € 2,435 mil-
lion to € 32,830 million. The increase pri-
marily relates to financial services receivables,
equity-accounted investments and intangible
assets. Non-current assets expressed as
a percentage of total assets amounted to
64 per cent (prior year: 67 per cent).
At the end of the reporting period, the fixed
assets of the Porsche AG group - i.e., the
intangible assets, property, plant and equip-
ment, leased assets, equity-accounted
investments and other financial assets -
amounted to € 19,793 million, compared to
€ 18,130 million in the prior year.
Fixed assets expressed as a percentage
of total assets amounted to 39 per cent
(prior year: 40 per cent). Intangible
assets increased from € 5,437 million to
€ 6,190 million. The increase is largely
attributable to capitalized development
costs, with the largest additions relating to
the Macan, Cayenne and 911 series. Add-
itions to emission rights as well as to other
acquired intangible assets also contributed
to the increase. Acquired rights of use,
on the other hand, decreased.
Property, plant and equipment increased
year on year by € 68 million to € 8,763 mil-
lion. The increase was primarily due to
additions to buildings and land and to rights
of use to buildings and land, while other
equipment, furniture and fixtures as well as
advance payments made and assets under
construction decreased. Leased assets
rose by € 340 million to € 3,954 million
compared to the prior year. This item con-
tains vehicles leased to customers under
operating leases.
Non-current other financial assets decreased
by € 274 million to € 8,596 million. The de-
crease largely results from marking derivative
financial instruments to market.
Deferred income tax assets amounted to
€ 867 million compared to € 817 million in
the prior year.
As a percentage of total assets, current assets
amounted to 36 per cent compared to 33 per
cent in the prior year. Inventories increased
from € 4,108 million in the prior year
to € 4,517 million at the end of the reporting
period.
Non-current and current receivables from
financial services rose from € 3,536 million
to € 4,542 million. The receivables mainly
stem from finance leases and customer and
dealer financing.
Current other financial assets increased by
€ 2,592 million to € 5,353 million. The in-
crease mainly relates to a short-term loan of
€ 2,000 million granted to Volkswagen AG
and the clearing account with Porsche Hold-
ing Stuttgart GmbH of € 242 million.
Cash, cash equivalents and time deposits
increased year on year by € 186 million to
€ 4,686 million.
The equity of the Porsche AG group in-
creased by €2,711 million to € 22,935 mil-
lion compared to the prior-year reporting
date, boosted by the profit after tax, other
comprehensive income net of tax and
the capital contributions by Porsche Holding
Stuttgart GmbH totalling € 4,573 million.
Within other comprehensive income net of
tax, the main increases were the pension
plan remeasurements net of tax and currency
translation, with the change after tax in the
hedge reserve recording a decrease.
By contrast, the profit transfer and dividend
payments of € 1,862 million reduced equity.
Non-current liabilities relate to pension
provisions, other provisions, deferred tax
liabilities, financial liabilities, other financial
liabilities, and other liabilities. These rose
by € 1,386 million to € 15,368 million com-
pared to the prior year. Non-current liabilities
expressed as a percentage of total capital
decreased from 31 per cent in the prior year
to 30 per cent at the end of the fiscal year.
Provisions for pensions and similar obliga-
tions decreased by € 407 million. The de-
crease is mainly attributable to the increase
in the discount rate from 0.8 per cent to
1.4 per cent.
Non-current other financial liabilities
increased by € 348 million. Of this in-
crease, an amount of € 263 million relates
to marking derivative financial instruments
to market and an amount of € 44 million
relates to other financial liabilities due
to outstanding contingent share purchase
price payments.
45,491
Current liabilities increased from € 11,285
million to € 13,079 million, which expressed
as a percentage of total capital as of the
end of the past fiscal year remains unchanged
compared to the prior year at 25 per cent.
100
15,096
1
606
1
Tax receivables
155
0
163
0
Securities
982
2
755
2
Cash, cash equivalents and time deposits
4,686
9
4,500
10
Current assets
18,552
36
51,382
D
19
in 2021, compared with
4,177 million euros in
the previous year.
thereof profit attributable to non-controlling interests
thereof profit attributable to shareholders
Total comprehensive income
Other comprehensive income, net of tax
Deferred taxes relating to other comprehensive income
Items that may be reclassified subsequently to profit or loss
Other comprehensive income, before tax
Fair value valuation of debt instruments that may be reclassified to profit or loss, net of tax
Share of other comprehensive income of equity-accounted investments that may be reclassified
subsequently to profit or loss, net of tax
Fair value valuation of debt instruments that may be reclassified to profit or loss, before tax
Deferred taxes relating to fair value valuation of debt instruments recognized in other
comprehensive income
Transferred to profit or loss
Financial data
Fair value changes recognized in other comprehensive income
Deferred taxes relating to cash flow hedges (OCI II)
22
125
Cash flow hedges (OCI II), net of tax
-7
-54
29
179
Cash flow hedges (OCI II), before tax
521
Fair value valuation of debt instruments that may be reclassified to profit or loss
-595
458
-101
8,695
8,763
5,437
6,190
Equity-accounted investments
Other equity investments
Property, plant and equipment
Leased assets
Intangible assets
Assets
Dec. 31, 2021 Dec. 31, 2020
€ million
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft as of December 31, 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
229
4
3,629
4,095
3,633
4,102
467
64
-335
165
802
570
-492
-391
Fair value changes recognized in other comprehensive income (OCI II)
659
Unrealized currency translation gains/losses
FINANCIAL POSITION
Cash flows from operating activities amount-
ed to € 6,416 million in the 2021 reporting
period following € 4,140 million in the
prior year. This is mainly the result of the
higher profit before tax as well as the change
in other provisions, liabilities (excluding
financial liabilities) and receivables (excluding
financial services), partially offset by higher
income tax payments and lower depreciation,
amortization and write-downs.
Investing activities of current operations -
i.e., the cash flow from investing activities
less investments in securities, loans and
time deposits - increased by € 604 million
to € 3,374 million. Investments in intangible
assets (excluding capitalized development
costs) and property, plant and equipment
decreased from € 1,547 million in the prior
year to € 1,442 million in the current reporting
period. Additions to capitalized development
costs amounted to € 1,601 million following
€ 1,225 million in fiscal year 2020. Cash
outflows from the change in loans and time
deposits amounted to € 2,308 million
(prior year: cash inflows of €51 million) and
for investments in securities € 283 million
(prior year: € 300 million).
Cash flows from financing activities changed
from cash inflows of € 78 million in the prior
year to cash outflows of € 518 million in the
current fiscal year. Payments made in respect
of profit transfer and dividends resulted in
a cash outflow of € 1,864 million (prior year:
€ 1,802 million). By contrast, capital contri-
butions by Porsche Holding Stuttgart
resulted in a cash inflow of € 471 million
(prior year: € 1,028 million).
The net cash flow of the automotive division,
defined as cash flow from operating activ-
ities less the investing activities of current
operations, increased by € 1,478 million to
€ 3,676 million (prior year: € 2,198 million).
The net available liquidity of the automotive
division - i.e., its gross liquidity less financial
liabilities and excluding the financial services
division in each case - improved from
€2,961 million as of December 31, 2020 to
€ 4,970 million as of December 31, 2021.
"WE CAN BE VERY HAPPY
Sales revenue
of the Porsche AG Group in € million
30
WITH THE 2021 FINANCIAL
YEAR. WE ACHIEVED AN
EXCEPTIONALLY STRONG
RESULT THANKS TO OUR
HEALTHY BALANCE SHEET
AND COST STRUCTURE."
25,784
25
23,491
20
Lutz Meschke, Deputy Chairman and
Member of the Executive Board -
Finance and IT
LUTZ MESCHKE HAS BEEN MEMBER OF THE PORSCHE AG EXECUTIVE BOARD RESPONSIBLE FOR FINANCE AND IT SINCE 2009
218
15
10
9
3,954
397
0
776
-1,118
Transferred to profit or loss (OCI II)
Cash flow hedges (OCI I), net of tax
- 332
480
Deferred taxes relating to cash flow hedges (OCI I)
1,108
- 1,598
Cash flow hedges (OCI I), before tax
-283
-75
Transferred to profit or loss (OCI I)
1,391
-1,523
Fair value changes recognized in other comprehensive income (OCI I)
-340
397
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax
Hedging
-340
397
Exchange differences on translating foreign operations, before tax
-340
-0
Transferred to profit or loss
3,614
573
167
685
782
Deferred tax liabilities
939
1,184
Other provisions
5,932
5,525
Provisions for pensions and similar obligations
20,224
22,935
Equity
5
8
Non-controlling interests
20,219
22,927
Equity before non-controlling interests
118
-489
Other reserves
6,302
9,146
Financial liabilities
Retained earnings
6,599
Other financial liabilities
2,959
3,638
Other financial liabilities
2,335
2,447
Trade payables
2,657
3,128
Financial liabilities
1,849
2,189
111
126
13,982
15,368
473
645
Other provisions
Provisions for taxes
Non-current liabilities
Other liabilities
285
633
5,668
5
13,754
45
1,199
4,108
4,517
30,395
32,830
817
867
164
113
Financial services receivables
Trade receivables
Inventories
Non-current assets
Deferred tax assets
Other receivables
8,870
8,596
2,414
3,461
Other financial assets
Financial services receivables
217
313
1,081
14,225
1,081
Other financial assets
45
Capital reserves
Subscribed capital
Equity and liabilities
45,491
51,382
15,096
18,552
Current assets
4,500
4,686
Cash, cash equivalents and time deposits
755
982
Securities
163
155
Tax receivables
606
579
Other receivables
2,761
5,353
1,122
28,518 28,695
33,138
0
Share of profit or loss of equity-accounted investments
Interest income
Interest expenses
Other financial result
Financial result
Profit before tax
Income tax income/expense
Current
Deferred
Profit after tax
thereof profit attributable to shareholders
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
1 Prior year figures adjusted.
226
Financial data
2021
2020
33,138
-24,281
8,857
28,695
-21,155
7,540
-2,111
-1,881
Operating profit
-1,426
Administrative expenses
Other operating income
Other operating expenses
Distribution expenses
2
1
5,314
0
2017 2018 2019 2020
2021
1 Before special items: 4,397; after
special items: 3,862.
Financial analysis
223
FINANCIAL DATA
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Value added statement
CONSOLIDATED INCOME STATEMENT
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
€ million
Sales revenue
Cost of sales¹
Gross profit
1
3
-1,255
- 1,085
- 1,858
-1,860
227
228
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
€ million
Profit after tax
Pension plan remeasurements recognized in other comprehensive income
2021
2020
4,038
3,166
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income, net of tax
877
6
-261
4
616
10
Fair value valuation of equity instruments that will not be reclassified to profit or loss, net of tax
Share of other comprehensive income of equity-accounted investments that will not be
reclassified to profit or loss, net of tax
43
-0
4
1.079
6
4,032
953
-1,180
5,314
4,177
-22
-10
421
406
-113
-129
129
-47
415
220
5,729
4,397
- 1,691
-1,231
-1,528
-998
-163
-233
4,038
3,166
3,162
Other liabilities
4
4,144
Income tax income/expense
Profit after tax
1 The prior-year figures were adjusted.
220
Financial analysis
2021
%
2020
%
33,138
100
28,695
100
-24,281
-73
-21,155
-74
8,857
27
7,540
26
-2,111
6
Profit before tax
- 1,881
Financial result
Other operating expenses 1
2017 2018 2019 2020 2021
Financial analysis
219
RESULTS OF OPERATIONS
The Porsche AG group's profit after tax
increased by € 872 million from € 3,166
million in the corresponding prior-year
period to € 4,038 million in the current fiscal
year. The tax rate in the reporting period was
30 per cent (prior year: 28 per cent).
Consolidated revenue in the Porsche AG
group amounted to € 33,138 million in the
reporting period (prior year: € 28,695 million).
The Porsche AG group sold 297,289 new
vehicles in the past fiscal year. This corres-
ponds to a 12 per cent increase in unit sales
compared to the prior year.
The Macan is the bestselling series with
86,529 vehicles sold, followed by the
Cayenne with 81,541 vehicles. With an
increase of 17,001 vehicles to a total of
39,222 vehicles sold, the Taycan recorded
the most significant increase in sales, over-
taking the other series 911 (39,068 vehicles),
Panamera (31,679 vehicles) and 718
(19,250 vehicles). In regional terms, China is
still the largest market with 94,826 vehicles
sold. The largest growth in relative terms
of 17 per cent to 74,431 vehicles sold was
recorded on the North American market.
With 61,288 and 26,788 vehicles sold, the
European and German markets likewise
recorded double-digit growth of 11 per cent
and 15 per cent, respectively.
Cost of sales increased by € 3,126 million to
€ 24,281 million (prior year: € 21,155 mil-
lion) and accounts for 73 per cent of sales
revenue (prior year: 74 per cent). The slight
decrease in cost of sales in relative terms is
largely attributable to changes in the product
and region mix as well as lower fixed costs.
The capitalization ratio for research and
development costs amounted to 66 per cent
(prior year: 55 per cent). The gross margin
comes to 27 per cent (prior year: 26 per cent).
Distribution expenses increased by € 230
million from € 1,881 million to € 2,111 mil-
lion as a result of the increase in unit sales
and the associated selling costs as well as
sales-related indirect overheads. Administra-
tive expenses rose from € 1,255 million to
€ 1,426 million. In proportion to sales
revenue, distribution expenses were down
slightly at 6 per cent (prior year: 7 per cent),
while administrative expenses remained un-
changed at 4 per cent (prior year: 4 per cent).
Personnel expenses of the Porsche AG group
increased from € 4,230 million to € 4,478
million in total. The increase in personnel
expenses is mainly driven by the rise in the
average number of employees during the year
by 500 to 36,519.
The depreciation and amortization charged
throughout the Porsche AG group, with
the exception of write-downs on investments
included in the financial result, increased
slightly to € 3,256 million compared to
€3,234 million in the prior year. The increase
is mainly attributable to higher depreciation
of property, plant and equipment and
leased assets.
Other operating income rose from 953 million
to 1,079 million. The increase is largely due
to the € 98 million rise in income from foreign
exchange gains.
Other operating expenses decreased from
€ 1,180 million to € 1,085 million. The
decrease is primarily attributable to lower
expenses from exchange rate changes of
€ 196 million.
The return on sales
increased to 16.0 per cent,
thereby significantly
surpassing the strategic
target of 15 per cent.
Results of operations
of the Porsche AG Group
€ million
Sales revenue
Cost of sales ¹
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Operating profit
4,177
-7
4
3,166
11
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
221
Operating profit amounts to € 5,314 million,
up by € 1,137 million on the prior year
(prior year: €4,177 million).
The financial result amounted to € 415 mil-
lion (prior year: € 220 million). The increase is
mainly due to reversals of write-downs of
€ 51 million on the equity-accounted invest-
ment in Bertrandt AG, which had been written
down by € 115 million in the prior year.
Profit before tax amounted to € 5,729 million
(prior year: €4,397 million).
The healthy cost structure and the sustain-
ably high earnings power of the Porsche AG
group are also reflected in the key perform-
ance indicators. Despite the supply short-
age of semiconductors and the resulting
delivery bottlenecks, the Porsche AG group
generated an operating return on sales of
16.0 per cent in the past fiscal year (prior
year: 14.6 per cent), mainly due to counter-
The operating return on sales for Porsche
AG's automotive division was 16.6 per cent
(prior year: 15.4 per cent). The return on
capital, defined as the ratio of the operating
result after tax to the average invested
assets of Porsche AG's automotive division,
amounted to 21.3 per cent (prior year:
18.1 per cent).
The pre-tax return on equity of Porsche AG's
financial services division was 21.2 per cent
(prior year: 14.7 per cent).
Operating profit totalled
5,314 million euros
Foreign exchange differences
5
Operating profit (EBIT)
of the Porsche AG Group in € million
SGO 604E
THE NEW 718 SPYDER CONTINUES THE HISTORY OF SUCH FAMOUS ROADSTERS AS THE PORSCHE 550 SPYDER AND THE 718 RS 60 SPYDER
222
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
4,3971
4,289
12
-1,426
4,038
- 1,231
-1,255
-4
1,079
3
953
4
- 1,085
4
-1,180
- 4
5,314
16
4,177
15
415
1
220
0
5,729
17
4,397
15
- 1,691
-4
1,486
1,331
Tax payables
Current liabilities
471
-1,862
0
Profit transfer and dividends payment
471
Capital contribution
Disposal of equity instruments
4,102
Capital transactions involving a change in ownership interest
43
-54
125
-1,118
396
4,648
64
43
125
54
-1,118
Other changes
45
Sales revenue
Source of funds in € million
of Porsche AG for the period 1 January to 31 December 2021
VALUE ADDED STATEMENT
236
235
Financial data
Balance at December 31, 2021
234
8
-11
-340
-361
223
9,146
14,225
22,935
Other income
396
4,038
3,633
A
467
0
3,166
4
17,428
1,028
5
22
22
776
-340
22
776
-340
0
616
- 1,864
13,754
6
4,032
20,224
5
-465
757
-173
45
6,302
45
20,224
5
-465
757
-173
6,302
13,754
-487
Cost of materials
Other upfront expenditures
126
no data
no data
no data
no data
no data
no data
1.2%
Value added
to creditors (interest expense)
Other taxes
no data
no data
no data
no data
no data
to the company (reserves)
no data
138
136
measures and cost discipline being introduced
at an early stage as well as the excellent
market performance. The pre-tax return on
sales amounted to 17.3 per cent (prior year:
15.3 per cent).
237
Financial data
100%
8,218
100%
8,568
1.6%
100%
11.8%
966
15.1%
1,292
21.2%
2,176
1.7%
10,247
Depreciation, amortization and impairment losses
Income tax
1,311
-3,044
-3,357
-3,214
-15,956
-16,661
- 19,363
28,518
828
-1,207
28,695
709
2019
2020
2021
2021
to shareholders (profit transfer)
Appropriation of funds in € million
Value added
33,138
893
15.9%
-818
10,247
12.2%
1,044
15.7%
1,605
to the state (taxes, duties)
48.7%
4,003
-2,128
49.4%
1,864 21.7%
4,230
1,862 18.2%
4,478 43.7%
to employees (wages, salaries, benefits)
2019
2020
8,218
8,568
1,802 21.9%
-19
-1,858
Total equity
-987
-872
-945
-931
-299
539
493
Cash flows from operating activities
471
Change in leased assets
Change in other provisions
Change in pension provisions
-134
543
Change in liabilities (excluding financial liabilities)
-734
Change in financial services receivables
-409
6,416
Investments in intangible assets (excluding capitalized development costs),
-2,308
Cash flows from investing activities
Change in loans and time deposits
48
-300
-283
21
-46
4,140
-352
Cash received from disposal of intangible assets and property, plant and equipment
Change in equity investments
- 1,547
-1,225
- 1,601
-1,442
Additions to capitalized development costs
and property, plant and equipment
Change in investments in securities
51
Change in receivables (excluding financial services)
-152
4,344
Cash and cash equivalents at beginning of period
2020
2021
€ million
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
3,174
231
230
45,491
51,382
11,285
13,079
43
65
Financial data
-223
Profit before tax
4,397
Change in inventories
-13
-222
Other non-cash expense/income
15
23
Share of profit or loss of equity-accounted investments
5,729
49
Gain/loss on disposal of non-current assets
3,357
3,214
Depreciation, amortization and impairment losses
-837
167
Income taxes paid
35
-5,965
-1,552
Capital contributions
Subscribed
capital
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at Jan. 1, 2021
Balance at December 31, 2020
Other changes
Capital
Capital transactions involving a change in ownership interest
Capital contribution
Disposal of equity instruments
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at Jan. 1, 2020
€ million
Profit transfer and dividends payment
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
reserves
12,726
Equity-accounted Non-controlling
investments
interests
-3,019
Equity and debt
instruments
Cash flow hedges Deferred costs of
(OCI I)
hedging (OCI II)
translation
Currency
Hedging
45
Other reserves
1,028
3,172
10
3,162
4,991
earnings
Retained
-1,860
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Items that will not be reclassified to profit or loss
Financial data
-110
Repayments of lease liabilities.
282
-444
Change in other financial liabilities
-2,550
-3,814
-102
Repayment of bonds
Proceeds from issuance of bonds
Capital transactions with non-controlling interest shareholders
1,028
-1,802
- 1,864
471
233
Profit transfer and dividends
3,222
Cash flows from financing activities
5,243
78
8,406
5,862
232
-518
1,518
4,344
4,327
Cash and cash equivalents at end of period
Securities, loans and time deposits
Gross liquidity
4,079
4,327
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
1,199
50
-67
-29
4,344
Net change in cash and cash equivalents
17.9%
Of which trainees
Employees subject to wage agreements
34,297
717
2,699
Employees exempt from wage agreements and executive employees
32,702
4,294
Male
34,010
798
2,349
31,816
Part-time employees
90.3%
Full-time employees 2
30-50 years
60.0%
Employees in 2021 by
age structure
2019
2020
2021 V
Employees by type of employment¹
9.7%
Female
22.1%
< 30 years
81.6%
Male
by gender
33,512
853
1,917
31,075
Executive employees in
2021 by gender
> 50 years
Proportion of employees who left the company
4,354
Male
107,294
20,056
125,297
23,767
39,327
210,611
Total number of participations
Female
Porsche's reporting on employee turnover is not broken down by age group, gender and religion as this data is not of a material nature for the company and is not
relevant for control purposes. The reported figure does not include temporary employment contracts, retirements or partial retirement arrangements.
1.9%
2.1%
2.4%
Employees in 2021
2019
2020
2021
No. of training programme participations
2019
2020
2021 V
Employee turnover in %1
248
247
Non-financial key figures
In the case of employees in production who are covered by the reduction of working hours under the Labour Market of the Future works agreement, the reduced
working time as agreed is deemed to represent full-time employment. There are no seasonal variations in the size of the workforce.
2 Definition of full-time employee: full-time employees are all employees with a contractually agreed weekly working time of at least 35 hours.
1 Due to equal pay and the framework conditions, Porsche does not report the number of temporary employees separately.
4,410
93.5%
> 50 years
90.3%
2020
2021
Percentage breakdown of executive employees by age and gender
6,450
28,979
29,771
30,188
6,588
6,808
Female
No. of employees by gender
9.7%
13.2%
14.3%
71.2%
76.6%
77.2%
19.1%
10.2%
8.5%
19.7%
19.8%
20.1%
56.4%
57.7%
59.9%
2019
93.7%
Percentage breakdown of employees by gender
18.4%
6.5%
6.3%
9.7%
74.2%
84.4%
83.9%
25.8%
15.6%
16.1%
0.0%
0.0%
0.0%
Male
Female
Breakdown by gender
18.4%
Female
30-50 years
< 30 years
81.8%
81.9%
81.6%
Male
Breakdown by age
331
18.1%
Female
Male
3,027
> 50 years
259
274
Other regions (Australia, Latin America)
1,055
1,098
Region: Asia
819
840
Region: North America
1,581
1,565
1,695
Region: Europe (excluding Germany)
Porsche AG
31,690
303
Employees by gender
< 30 years
30-50 years
7,365
705
298
341
1,021
834
23.9%
32,661
22.6%
> 50 years
2019
2020
2021 V
30-50 years
<30 years
Porsche Leipzig GmbH
20.0%
5,394
33,089
15.0%
50.7%
48.7%
Of which male
35,429
36,359
36,996
Region: Germany
Of which other Group companies
Of which Porsche Leipzig GmbH
Of which Porsche AG
Total
10.7%
10.9%
11.3%
60.1%
49.4%
22,379
22,290
21,371
15.3%
Of which male
9,798
9,875
10,308
2.4%
2.5%
14.6%
2.6%
4,260
4,194
4,309
17.0%
17.5%
17.9%
> 50 years
Of which female
61.6%
7,376
4,080
2016
2017 2018 2019
2020 2021
243
Water intake and recirculation in m³
2021
2020
2019
Waste by location, type and disposal method in t¹
2021
2020
2019
Water intake 1
Total
Total
2015
2014
Non-financial key figures
57,685
0.59
0.58
0.6
2 The reported emissions relate exclusively to Porsche's own vehicles. These are presented separately because the business-related proportion cannot be distin-
guished from private journeys.
3 Emissions are generally only produced from local travel, as 100 per cent use is made of green electricity for long-distance travel.
4 The NOx emissions shown here refer exclusively to production processes, and not to Porsche vehicles.
5 During the stipulated reporting period, there were no emissions of substances included in Annexes A, B, C or E to the Montreal Protocol on Substances that
Deplete the Ozone Layer.
758,443 ✓
Total direct and indirect GHG emissions in t of CO2 equivalent
2020
2019
0.4
0.2
9,090 ✓
26,971
0
2021
5,183
Of which water from third parties
710,237
701,308
9,619
13,288
Waste for recycling
Hazardous waste
Non-hazardous waste
Non-production-specific waste
Metallic waste
Waste for removal
21,755 V
20,787
23,995
16,143
13,556
16,202
4,481
128,437
111,857
100,461
5,743
553,267
694,992
690,066
Production sites
Of which groundwater
Production sites
Development sites
Other sites
Water recirculation²
756,783
Total
Development sites
Other sites
Porsche only draws fresh water (≤ 1,000 mg/l total dissolved solids (TDS)) from areas with no water stress.
2 Porsche only feeds fresh water (≤ 1,000 mg/l total dissolved solids (TDS)) into areas with no water stress.
1,660
650,579
8,929
579,832
4,926
Production sites
0.66
60.0%
16.2%
3.07
3.05
3.26
Other sites
3.32
3.82
3
4
Hazardous waste
Water consumption of the production sites in m³/vehicle
176
3,196
3,130
2,196
Metallic waste
57
3.17
3.05
Waste for recycling
2.73
2
244
637
434
340
16
3
89
9
743
731
18
30
Non-production-specific waste
Non-hazardous waste
Waste for removal
58
1,058
1
Non-production-specific waste
1,160
90
80
Non-hazardous waste
509,098
491,679
75,728
79,069
539,785
346
630
885
Hazardous waste
603,759
577,026
624,597 V
2,674
241
81,373
Non-production-specific waste
12
937
Non-hazardous waste
986
1,686
1,280
Hazardous waste
Waste for recycling
1,666
7,156
5,272
Development sites
13,288
9,619
5,743
52
37
6,797
17.7%
0
2014
Employees by age structure in %
Unless specified otherwise, the listed key figures relate to the Porsche AG Group (including subsidiaries).
PERSONNEL AND SOCIAL KEY FIGURES
246
245
0
3
23,995
20,787
21,755 V
200
Non-financial key figures
2019
157,965
Alloys
2020
2021
2020
2019
Porsche AG Group
17.6%
5.2%
4.7%
4.5%
22.9%
20.9%
22.1%
Steel/cast iron
Of which female
Of which male
Of which female
< 30 years
2019
2020
2021 V
Total workforce (number of employees)
30-50 years
Material consumption in t
241,883
Total volume of waste in t
Metallic waste
Non-production-specific waste
Non-hazardous waste
Hazardous waste
in 2021
Material consumption
Copper
15,998
112,697
Plastics
74,716
Others
2021
2019 2020
2017 2018
2016
2015
Waste for removal
Hazardous waste
Non-hazardous waste
Non-production-specific waste
1 Recycling and disposal of the reported hazardous and non-hazardous waste are exclusively carried out by external disposal companies.
0
0
0
99
74
44
2021
15
124
458
335
167
61
22
5
1
2,604
0.65
1 The reported GHG emissions (Scope 1) include all the direct emissions of Porsche AG and Porsche Leipzig GmbH. Since the 2021 reporting year, this figure has
additionally included emissions from refrigerants and from VOC combustion.
61,222
64,292
Energy consumption of the production sites in kWh/vehicle
65,555
no data
no data
194
205
145
1,485
1,641
1,757
1,485
1,637
1,748
69,697
64,437
61,427
69,891
3,582
2,833
3,095
199 per cent of the electrical energy is TÜV-certified green electricity. The remaining 1 per cent relates to the acquisition of new buildings and to existing grey
electricity contracts, which were fully transitioned to green electricity on 1 January 2022.
269,750
149,130
30,000
4,000
72,811
65,505
72,811
31,697
no data
2,046
4,571
1,214
56,936
9,249
3,757
9
0
2014
2015
2016 2017
2018
2019
2020 2021
Non-financial key figures
241
242
Emissions in t of CO2 equivalent and significant air emissions in t
2021
2020
2019
Direct and indirect greenhouse gas emissions of the production sites in kg/vehicle
2,485
2,673
2,607
2,763
14,081
10,884
12,105
2,046
Heating oil
3,226
Gas
72,811
Biogas as combustible gas
for manufacturing processes
0
Direct energy
consumption by
production site
in 2021
Biogas
3,000
2,000
1,000
3,185
3,008
2,952
269,750
Direct and indirect GHG emissions in t of CO2 equivalent
Total
8,493
12,344
Gas
Heating oil
Fuel¹
Conversion factor from litres to MWh: petrol 8.72 kWh/l; diesel 9.91 kWh/l.
Indirect energy consumption by primary energy source in MWh
2021
2020
2019
Total
Production sites
Electrical energy¹
District heating
418,591 v
372,023
380,428
Other sites
Heating oil
Of which biogas
Gas
NON-FINANCIAL KEY FIGURES
Environmental and energy key figures
Personnel and social key figures
240
ENVIRONMENTAL AND ENERGY KEY FIGURES
The key figures listed refer to Porsche AG and Porsche Leipzig GmbH.
The categories of "production sites" (Stuttgart-Zuffenhausen and Leipzig including production-related external sites), "development sites"
(Weissach including development-related external sites) and "other sites" (Korntal-Münchingen, Freiberg, Asperg, Weilimdorf,
Ludwigsburg) correspond to the categories used in internal reporting relevant for control.
332,182
Direct energy consumption by primary energy source in MWh
Production sites
Gas
Of which biogas
Combustible gas for manufacturing processes
Of which biogas
Heating oil
Development sites
Total
8,165
294,317
237,283
28,201
74,662
66,380
66,476
58,795
52,295
52,664
2,487
1,228
537
13,380
12,857
13,275
11,747
11,326
34,422
51,372
Other sites
Electrical energy1
District heating
Weissach CHP plant
229,176
246,818
43,527
30,719
26,589
2021
2020
301,608
2019
347,832
340,327
266,375
272,976
204,868
327,119
248,820
182,101
CHP plants and PV arrays
Development sites
Electrical energy1
District heating
433,289 V
0.64
9,090 ✔
57,685
0.45
Production sites
0.24
0.18
0.36
VOC emissions of the production sites in kg/vehicle
Development sites
0.07
0.06
0.09
Other sites
0
0
0
Weight of volatile organic compounds (VOC)
0.24
0.31
0.23
0.18
15,415
13,701
0
2014 2015
2016 2017 2018
41.75
33.06
123.29 V
2019 2020 2021
33.99
26.2
33.82
7.60
6.68
8.62
0.16
42.67
11,303
105.29
0.98
0.11
0.8
Development sites
0.81
0.74
0.05
0.04
0.03
Other sites
Ozone-depleting substances 5
0
0
0
0
0
0
0.18
0.22
Production sites
0.14
Production sites
123.29
105.29
115.40
1.0
Development sites
0
115.40
0
Other sites
0
0
0
Weight of dust emissions
0.27
0.22
0
26,971
10
50,774
Production sites
2,825
12,166
42,038
750
Development sites
4,561
13,192
13,906
Other sites
270
298
323
Indirect GHG emissions in t of CO2 equivalent (Scope 2)
Production sites
1,434 v
56,267
25,656
851
839
1,009
Production sites
2,895
12,167
42,123
1,000
Development sites
1,315
4,959
14,412
Other sites
1,236
1,060
1,150
Direct GHG emissions in t of CO2 equivalent (Scope 1)¹
7,656 V
13,744
69
1,418
85
Other sites
SOx emissions
27,574
9,464
0
28,753
4,936
74,157
239
246
239
250
9,644
0
38
6,807
8,402
Development sites
Production sites
NOx emissions 4
Significant air emissions in t of
500
Development sites
Other sites
398
552
171,284
506
70
966
827
Other indirect GHG emissions in t of CO2 equivalent
Other indirect GHG emissions (Scope 3)
Porsche's vehicle fleet²
Rail 3
Air
Rental cars
762
101,530
450
Percentage breakdown of participations by employee category
Employees subject to wage agreements
450
12.9
7.7
9.6
220
11.1-10.5
251-238
G
Macan GTS
195
265
10.9-10.8
195
265
10.8
280
380
E
265-255
E
D
D
243-228
242-229
331
200-198
200
225-224 11.7-11.1 265-251
225 11.7-11.3
8.8-8.7
8.8-8.7
9.9-9.8
9.9
7.6-7.4
7.6-7.5
8.4
8.4
12.3
440
324
12.3
10.7-10.1
10.7-10.1
911 Carrera S
Macan S
G
283
911 Carrera
911
Macan
Macan
G
385
230
219
9.6
7.6
13.0
400
294
10.1
911 Carrera S (MT)
12.9
9.4
245-236
10.8-10.4
218
9.6
7.6
12.9
7.4
385
911 Carrera Cabriolet
Macan T
G
245-233
10.8-10.3
215
283
331
450
14.5
257-251
F
252-245
G
Current consumption figures can be found at
7 www.porsche.com/germany/verbrauchsinformationen
G
Further information
Cayenne Platinum Edition
G
247-234
10.9-10.3
218
9.6
257
7.8
252-245
10.7
15.5
7.8
10.7
911 Targa 4 GTS
353
480
243 11.1-10.8
227 11.3-11.0
243 11.1-10.8
13.7
9.9
911 Targa 4 GTS (MT)
353
480
15.5
7.8
7.7
718 Cayman GTS 4.0 (PDK)
12.6
283
11.0-10.6
223
9.8
7.9
13.1
450
250-241
331
G
243-229
10.7-10.1
227
10.0
7.3
911 Carrera S Cabriolet
385
G
911 Carrera S Cabriolet (MT)
911 Carrera 4
11.5-11.2
340
250
Cayenne
G
Cayenne
243-233
230
10.1
7.4
14.7
450
331
10.7-10.3
480
F
E
F
243
330
11.4-11.2
7.8-7.5
718 Cayman S (PDK)
257
350
12.3
7.0
8.8
200
9.9-9.6
208-201
218-213
207-202
235-228
224-217
F
Panamera 4 Sport Turismo Platinum Edition
243
330
Panamera 4S Sport Turismo
G
7.8-7.5
7.5-7.4
7.6-7.5
11.9-11.6
440
324
Panamera 4 Sport Turismo
Panamera 4S Executive
11.6-11.3
440
324
Panamera 4S
G
11.4-11.2
F
G
220-212
9.7-9.3
9.2-8.9
9.6-9.4
9.1-8.9
10.3-10.1
300
220
718 Cayman T
185
8.1
6.6
11.8
10.6
220
718 Cayman (PDK)
199
8.7
6.9
11.8
300
324
6.9
200
218
9.6
7.5
13.0
350
257
8.7
718 Cayman S
8.1
6.5
10.8
300
220
718 Cayman T (PDK)
185
440
11.7-11.5
G
246
10.8
8.5
14.7
400
294
10.9
718 Cayman GTS 4.0
463
Panamera Turbo S Executive
G
299
13.2
281
630
12.3
247
Panamera Turbo S Sport Turismo
F
D
D
D
D
D
D
G
D
D
201-197 11.4-10.2 258-232
202-199 11.3-10.4 257-235
202-199 11.3-10.4 257-235
205-202 11.3-10.6 257-240
9.0-8.9 205-202 11.5-10.6 260-241
9.0-8.9 205-202 11.5-10.6 260-241
9.0-8.8 205-201 11.3-10.3 256-234
9.1-9.0 208-205 11.3-10.5 256-238
7.7-7.6
9.2-9.1 210-207 11.5-10.7 260-242
8.2-8.0 10.9-10.7 249-244 13.1-12.1 296-275
8.5-8.3 11.1-10.9 253-248 13.2-12.3 300-280
8.5-8.4 10.8-10.7
247-245 13.2-12.8 298-290
8.7-8.5
11.0-10.9 251-249 13.2-12.9
299-293
8.8-8.7 11.1-11.0 253 251 13.3-13.0 302-295
15.5-15.4
14.9-14.8
15.1-15.0
15.0-14.9
87,238
630
463
D
E
9.3
500
G
251
11.1
249
10.9
8.5
Panamera GTS Sport Turismo
15.0
309
718 Cayman GT4
15.4
480
353
Panamera GTS
420
17.4
353
718 Cayman GT4 (PDK)
368
718 Cayman GT4 RS
630
463
Panamera Turbo S
G
480
242
232
10.2
8.1
13.7
420
309
10.7
300
353
F
Cayenne S Coupé Platinum Edition
G
258-244
11.4-10.7
221
9.7
7.5
13.4
480
353
911 Carrera GTS
D
292-271
225-222 12.9-12.0
9.9-9.7
8.2-7.9
12.8
E-D
911 Carrera 4S Cabriolet (MT)
331
450
14.9
7.5
324
10.2
10.8-10.4
245-235
G
Cayenne S Coupé
324
440
234
440
12.8
8.2 7.9
480
13.5
7.7
9.8
224
11.3-10.9
353
256-248
Cayenne Turbo Coupé
404
550
15.5
9.3
11.6
G
E-D
911 Carrera GTS Cabriolet
9.3
911 Carrera GTS (MT)
353
480
15.1
7.4
10.3
9.9-9.7
11.6
234
249-236
G
Cayenne Turbo
404
550
15.5
11.0-10.4
D
283-266
292-268
292-274
223-220 12.9-12.1
14.8
450
331
911 Carrera 4S (MT)
8.3-8.2
11.7-11.4
7.4
340
Cayenne Coupé Platinum Edition
G
253-239
11.1-10.5
222
9.7
250
7.8
10.1
10.8-10.2
911 Carrera 4S Cabriolet
D
D
D
283-259
283-266
283-263
215-210 12.5-11.5
215-210 12.5-11.7
217-214 12.5-11.6
217-214 12.5-11.8
223-220 12.9-11.8
231
9.4-9.2
9.4-9.2
9.5-9.4
9.5-9.4
9.8-9.7
12.8
440
324
Cayenne S
G
245-231
8.0-7.8
911 Carrera GTS Cabriolet (MT)
13.1
331
250
13.3
7.9
9.9
225
11.1-10.7
340 11.5-11.2
252-242
Cayenne S Platinum Edition
324
440
12.8
8.0-7.8
9.8-9.7
G
450
8.2-8.1
8.2-8.1
283
911 Carrera 4S
8.3-8.2
11.7-11.4
340
250
Cayenne Coupé
911 Carrera Cabriolet
F
10.8-10.5
221
9.7
8.0
12.7
385
246-238
911 Edition 50 Years Porsche Design (MT)
353
15.1
450
331
911 Targa 4S (MT)
G
253-244
11.1-10.7
227
9.9
8.0
13.3
450
331
911 Targa 4S
F
247-239
10.9-10.5
223
480
15.4
7.8
10.6
242
11.1-10.8
15.0
251-244
911 Targa 4
283
385
12.8
8.0
9.8
G
7.6
10.3
235
10.3
235
10.8-10.4
246-236
G
911 Edition 50 Years Porsche Design
7.6
353
13.7
7.7
9.9
227
11.3-11.0
257-251
480
353
15.0
331
10.8-10.4
246-236
G
911 Targa 4S Heritage Design Edition
331
450
450
13.3
9.9
227
11.1-10.7
253-244
G
911 Targa 4S Heritage Design Edition (MT)
8.0
911 Carrera 4 GTS Cabriolet (MT)
G
256-249
222
11.4-10.8
259-245
G
Cayenne GTS
338
9.7
460
9.1
11.4-11.2
225-222
264
264
260-256
260-255
12.9-12.1
14.1-13.5
292-274
D
15.3-14.7
319-305
7.6
480
7.7
10.4
238
10.9-10.5
246-239
G
13.5
Cayenne GTS Coupé
460
15.3-14.9
9.1
11.4-11.2
911 Carrera 4 GTS
353
338
480
F
F
9.1
11.9
271
14.1
319
F
16.6
911 Carrera 4 GTS Cabriolet
480
13.7
7.7
9.9
226
11.3-11.0
353
14.1-13.5 319-307
14.0-13.3
14.1-13.3
640
Cayenne Turbo GT
318-302
F-E
319-301
F
911 Carrera 4 GTS (MT)
353
471
480
7.7
10.5
240
11.1-10.6
252-240
G
15.3
220
18.2%
8.8-8.6
8.8-8.7
8,8-8,7
9.0-8.9
90.0%
2030 target
69.0%
2021 status
1 Of which, donations totalling 2 million euros in foundation assets for the Ferry Porsche Foundation.
approx. 4.6
2019
approx. 21
20201
0%
approx. 11.8 V
Percentage degree of fulfilment of highest quality standards based on purchasing volume¹ ✓
1 Local suppliers are defined as suppliers with their registered office in the EU. The main places of business are Stuttgart-Zuffenhausen and Leipzig.
2019
2021
Donations made in € million
2020
Injury rate = accident frequency index: provides information on how frequently reported accidents have occurred within the company relative to the total hours worked.
The calculation formula used is the number of reported work-related accidents multiplied by one million hours, divided by the number of hours worked.
4.6
2019
1.0%
Registered office outside the EU
Suppliers
of production materials
96.0%
Registered office
in the EU
Suppliers
of non-production
materials
97.0%
1 Based on creditor's billing address.
Porsche AG
Porsche Leipzig GmbH
5.7
2.9
6.1
4.0
6.1
2021
Percentage spend with local suppliers by Porsche AG at main places of business 1
97.4%
97.5%
99.0%
Registered office
Dr Hans Michel Piëch
Lawyer in private practice
Hans-Peter Porsche
Engineer
Dr Ferdinand Oliver Porsche
Member of the Board of Management of
Familie Porsche AG Beteiligungsgesellschaft
Chairman of the Supervisory Board
Dr Hans Peter Schützinger
Hans Dieter Pötsch
Chairman of the Board of Management of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Dr Arno Antlitz
Member of the Volkswagen AG Board of Management -
Finance
Dr Christian Dahlheim
Director Group Sales Volkswagen AG
Member of the Board of Management of Porsche Holding GmbH
2020
Dr Wolfgang Porsche
Diplom-Kaufmann
on 31 December 2021
in the EU
100%
1 The degree of fulfilment is the purchasing volume of the direct suppliers of production materials who were in the top assessment category in the S-rating divided
by the total purchasing volume of all the direct suppliers of production materials assessed in the S-rating.
Non-financial key figures
251
FURTHER INFORMATION
Shareholder representatives
The Supervisory Board
GRI content index
TCFD index
Porsche AG Group - brief overview
Independent auditor's report
THE SUPERVISORY BOARD
of Porsche AG
Emission and consumption information
2021
Injury rate¹
3 Missed working days resulting from accidents reported in the reporting period are counted as lost days (usually Monday to Friday); the day of the accident
itself is not included (≥ 1 lost calendar day).
13.9
20.8
Non-financial key figures
249
250
Number of accidents, lost days and fatalities¹
19.4
2021
2019
Total
Accidents 2
Lost days 3
Fatalities
Porsche AG
2020
Accidents²
Other Group companies
28.8
Other Group companies
13.9
8.1
21.7
Employees exempt from wage agreements and executive employees
19.2
28.3
19.9
Porsche AG
19.1
20.2
20.3
Porsche Leipzig GmbH
21.3
20.6
Thomas Schmall-von Westerholt
Percentage breakdown of origin of suppliers to Porsche AG in 2021 1
214
2
Porsche Leipzig GmbH
Accidents²
Lost days 3
Fatalities
18
197
0
0
23
220
30
194
0
1 Porsche does not make a distinction according to gender or between employees and workers who are not employees but whose work and/or workplace is
controlled by the organisation, and does not show the individual categories for work-related injuries (level of detail not material).
2 Porsche only reports accidents that were officially recorded. Non-serious injuries (minor accidents) are not reported. Accidents that do not result in lost days
(calendar days) are classed as minor accidents.
293
203
0
188
2,362
218
4.0%
1,964
1,733
2,556
Registered office outside the EU
Fatalities
0
2
185
191
Lost days 3
1,767
1,440
0
11.8
Member of the Volkswagen AG Board of Management -
Technology
Member of the Volkswagen AG Board of Management -
Integrity and Legal
911 GT3 (PDK)
G
220-212
209-201
235-229
224-218
219-213
9.7-9.4
200
8.8
7.0
11.8
300
220
718 Boxster T
9.9-9.6
200
8.8
7.0
12.4
350
6.6
8.1
185
9.7-9.4
9.2-8.9
718 Boxster S
257
375
350
7.6
9.6
218
10.4-10.1
718 Boxster S (PDK)
257
12.9
510
17.3
9.5
510
17.3
9.5
12.4
283
12.9
375
293
G
911 GT3 with Touring Package (MT)
375
510
19.1
718 Cayman
G
10.6
911 GT3 with Touring Package (PDK)
G
G
12.4
283
13.0
294
F
911 GT3 (MT)
G
375
19.2
9.9
13.3
304
12.9
293
510
300
220
199
Vice President Human Resources Zuffenhausen
Stefan Schaumburg
Trade Union Secretary of IG Metall -
Responsible Manager for Tariff Policy
Carsten Schumacher
Chairman of the Works Council Weissach
Vera Schalwig-Kaufmann
Member of the General and Group Works Councils of Porsche AG
Manager responsible for Members and Finances
of IG Metall Union, Stuttgart
254
256
EMISSION AND CONSUMPTION INFORMATION1
NEDC
Jordana Vogiatzi
WLTP
Member of the Group Works Council of Porsche AG
Knut Lofski
Employee representatives
Werner Weresch
Deputy Chairman of the Supervisory Board
Chairman of the Works Council Zuffenhausen/Ludwigsburg/Sachsenheim
Chairman of the General and Group Works Councils of Porsche AG
Harald Buck
Member of the Works Council Zuffenhausen
Chairman of the Works Council Porsche Leipzig
Member of the General and Group Works Councils of Porsche
International VIP and Special Sales Porsche AG
Akan Isik
Member of the Works Council Zuffenhausen
Member of Group Works Council of Porsche AG
Nora Leser
Trade Union Secretary of IG Metall - Administration Office Stuttgart
Wolfgang von Dühren
Hiltrud Werner
Fuel
Power
[PS]
consumption
extra-urban
[1/100 km]
[g/km]
consumption CO₂ emissions consumption CO₂ emissions Energy
combined combined
efficiency
[1/100 km]
class
combined
[1/100 km]
combined
[g/km]
718 Boxster
consumption
urban
[1/100 km]
718 Boxster
911
220
300
11.8
6.9
8.7
718 Boxster (PDK)
Power output
[kW]
[PS]
Fuel
consumption
urban
Fuel
consumption
extra-urban
Fuel
[1/100 km]
[1/100 km]
Fuel
consumption CO₂ emissions consumption
combined combined
[1/100 km] [g/km]
Power output Power
[kW]
combined
[1/100 km]
Model
NEDC
WLTP
Fuel
Fuel
Fuel
CO2 emissions Energy
combined efficiency
[g/km]
class
10.1
Model
Porsche Leipzig GmbH
F
911 Turbo Cabriolet
427
580
15.2
8.9
11.3
718 Spyder
309
420
15.0
8.5
10.9
249
11.1
251
G
10.7
232
10.2
8.1
13.7
420
208-202
309
11.1
8.6
15.5
650
478
911 Turbo S
718 Spyder (PDK)
9.2-8.9
185
8.1
304
13.3
10.0
85.9%
85.0%
87.3%
12.9
Employees exempt from wage agreements and executive employees
15.0%
12.7%
2021
2020
2019
Newly hired employees by region, gender and age group
14.1%
242
292
G
6.5
10.9
300
220
718 Boxster T (PDK)
G
G
279-271
11.1
8.7
15.3
580
427
911 Turbo
254 12.3-12.0
G
911 Turbo
Cabriolet
219
9.6
7.6
13.0
400
294
10.1
Boxster 25 years (PDK)
243
Panamera
G
247
10.9
246
330 11.4-11.1
10.8
230
Panamera 4
7.6-7.4
10.2
330 11.3-11.0
243
Panamera 4 Executive
718 Cayman
G
7.3-7.1
330
243
Panamera 4 Platinum Edition
7.5-7.0
7.3-7.1
330 11.6-11.4
243
11.6-11.4
No. of newly hired employees by region
8.5
400
8.5
400
294
718 Boxster GTS 4.0
G
G
10.8
G
257 12.5-12.1
254 12.3-12.0 278-271
257 12.5-12.1 284-275
11.3
8.6
15.9
650
478
284-275
14.7
246
247
294
Boxster 25 years
Panamera
G
230
10.1
10.9
219
7.6
13.0
400
294
718 Boxster GTS 4.0 (PDK)
G
9.6
Region: Germany
14.7
Region: North America
21.6
14.2
15.7
21.7
15.3
17.2
15.9
22.4
11.3
17.2
11.3
7.3
19.0
12.1
9.9
15.9
12.4
No. of returned employees still employed after 12 months2
Female
268
244
48
Porsche AG
Porsche Leipzig GmbH
Other Group companies
Other Group companies
Porsche AG
Male
1,166
1,240
1,047
Porsche Leipzig GmbH
Male
1,095
21.6
17.4
Average no. of training hours per participant by employee category
2021
2020
2019
² Due to the relatively long duration of parental leave or as a result of leave commencing late in the respective reporting year, not all employees have returned by the
time of data collection. The return to work and retention rate cannot be calculated on an annual basis as employees who returned in a given year did not necessarily
also begin their parental leave in that same calendar year.
Employees subject to wage agreements
1 The total number of employees entitled to parental leave cannot be determined because employees are not obliged to report a birth.
The year for which the parental leave is recorded is the year in which the period of leave begins.
11.7
21.8
Porsche AG
11.8
Region: Europe (excluding Germany)
17.0
23.5
15.5
12.1
847
190
23.3
10.5
10.4
16.6
9.7
22.6
1,218
Total
1,454
1,037
Female
Male
223
1,055
236
1,278
1,484
11.7
Total
No. of newly hired employees by gender
Female
586
453
679
2020
2021
Male
2,051
3,245
No. of newly hired employees by age group
< 30 years
810
1,259
1,369
2,034
16
57
Other regions (Australia, Latin America)
Region: Asia
1,553
180
1,434
2,221
3,684
12
96
Total no. of training programme participations
110
78
36
100
93
127
2019
20
1,076
2019
1,534
1,523
1,322
350
281
243
Total
Female
1,079
30-50 years
Male
No. of employees returning after parental leave 2
1,242
1,184
2020
2021
Female
210,611
69
94
Average number of training hours per participant
1,819
71
125,297
107,294
Parental leave and return to the workplace
> 50 years
No. of employees who took parental leave¹
Total
2021
1,151
2020
2019
272,162
2020
2019
Deliveries
Units
301,915
20,467
20,502
34,328
911
Units
38,464
34,800
21,784
718 Boxster/Cayman
2021
Units
280,800
BRIEF OVERVIEW
Impacts of climate-related risks and opportunities on strategy, operating activities and financial planning:
266
Porsche does, however, measure material contributions in the area of climate-related opportunities and risks as part of its
sustainability and environmental management:
> Environmental and energy key figures, pp. 240-245
Macan
Porsche's risk strategy does not currently include any specific requirements regarding the management of climate-related risks.
There is merely the requirement that the overall risk must not exceed a certain threshold (risk appetite), in order that the degree
of jeopardy for the company's continued existence can be recognised early on.
> Decarbonisation, p. 90
Describe the impact of climate-related risks and opportunities on Porsche's businesses, strategy, and financial planning:
Short-, medium- and long-term climate-related risks and opportunities are highly significant to Porsche's organisation.
To counter these risks, Porsche incorporated the "Decarbonisation" area of action within the sustainability strategy into
the corporate strategy and also into its financial planning. Other climate-related risks and opportunities are addressed
under "Environmental management":
> Production decarbonisation, p. 97
7 Consumption of resources and recycling in production, pp. 98-99
7 Environmental and energy key figures, pp. 240-245
Strategy 2030, pp. 72-74
7 Sustainability strategy, pp. 78-79
7 Decarbonisation, p. 90
Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario:
As part of its risk management, Porsche ensures that the physical and transitory impacts of climate change are recognised
and are addressed accordingly. The scenario-based assessment of various climate-related risks is currently under review.
Describe the targets used by Porsche to manage climate-related risks and opportunities and performance against targets:
The management of sustainability targets also includes topics which are of relevance to climate-related risks and opportunities:
7 Governance and transparency, pp. 122-125
7 Decarbonisation, p. 90
Further information
265
PORSCHE AG GROUP
Units
22,655
78,124
38,790
28,672
37,585
718 Boxster/Cayman
Units
18,477
19,263
Macan
Units
Units
78,490
89,744
Cayenne
Units
86,233
Disclose the metrics used by Porsche to assess climate-related risks and opportunities in line with its strategy and
risk management process:
95,293
82,137
84,857
911
274,463
263,236
99,944
Cayenne
Units
83,071
92,860
92,055
Panamera
Units
30,220
25,051
32,721
Taycan
Units
41,296
20,015
813
Production
Units
300,0811
88,362
Describe the climate-related risks and opportunities Porsche has identified over the short, medium, and long term:
Regular revision of Porsche's risk map means it is constantly changing. While climate-related risks are currently identified
first and foremost as the impacts of physical climate change (for example, extreme weather events) and of transitory changes
in the regulations (for example, CO₂ fleet emission regulations), there is currently an undertaking to explicitly designate a
physical and transitory climate risk the impacts of which can then be incorporated into the company's own risks depending
on the result.
Operations and suppliers at significant risk for incidents of child labor
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into Porsche's
overall risk management:
114-119
→ Online GRI index
126-127, 131-132
126-127, 131-132
→ Online GRI index
126-127, 131-132
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
126-127,131-132
112-113
112-113
→ Online GRI index
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
412-2
412-3
Employee training on human rights policies or procedures
126-127, 131-132
126-127,131-132
→ Online GRI index
Significant investment agreements and contracts that include human rights clauses
GRI 412: Human Rights Assessment (2016)
126-127, 131-132
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
408-1
between employees and workers
who are not employees but whose
work and/or workplace is controlled
by the organization.
Porsche does not make a distinction
between employees and workers who
are not employees but whose work
250 and/or workplace is controlled by the
organization, and does not show the
individual categories for work-related
injuries (level of detail not material).
Panamera
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
114-117
404-1
Average hours of training per year per employee
249
404-2
GRI 409: Forced or Compulsory Labor (2016)
Programs for upgrading employee skills and transition assistance programs
GRI 405: Diversity and Equal Opportunity (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
405-1
Diversity of governance bodies and employees
GRI 407: Freedom of Association and Collective Bargaining (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
407-1
Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk
GRI 408: Child Labor (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
116-117
→ Online GRI index
or that underwent human rights screening
GRI 414: Supplier Social Assessment (2016)
128-129
→ Online GRI index
126-127, 131-132
Non-compliance with laws and regulations in the social and economic area
→ Online GRI index
Further information
263
264
128-129
TCFD INDEX
Describe the board's oversight of climate-related risks and opportunities:
Pursuant to Section 91 (2) and (3) of Germany's Stock Corporation Act (AktG), the management board of a stock corporation
is obliged to institute a monitoring system in order to allow developments jeopardising the company's continued existence
to be identified at an early point in time. This is implemented at Porsche by means of the existing risk management system.
The risk management system is used to identify and evaluate risks throughout the company as well as handle and monitor their
management. These include "climate-related" risks, for example physical or transitory climate risks insofar as these lie above
the relevance thresholds stipulated in terms of risk policy. The Executive Board of Porsche AG receives quarterly reports on the
current risk exposure (primary individual risks and overall risk assessment) and, based on these, can in particular understand
and assess the current degree of jeopardy for the company's continued existence due to climate-related risks. In addition, the
effectiveness of the risk early-warning system is audited annually by external auditors.
Describe Porsche's processes for identifying and assessing climate-related risks:
At Porsche, every department and every key Group company is directly linked to the risk management system. Every department
therefore has the opportunity (and an obligation) to identify negative deviations from a target figure (= risks). This occurs via the
risk management system processes (risk identification, risk assessment, risk management, risk monitoring).
Describe Porsche's processes for managing climate-related risks:
Climate-related risks are addressed by the relevant departments depending on the content, with risk management measures
then being implemented.
Describe management's role in assessing and managing climate-related risks and opportunities:
Based on the existing risk management system specifications, which are founded on the well-known Three Lines Model, the
first line (i.e. management of the operating units) is the first entity that evaluates, manages and monitors risks. Managing
and monitoring each risk is the responsibility of the management of the organisational unit which is most suited to the task.
These rules apply to all risks and therefore also to climate-related risks.
The requirements of the Task Force on Climate-related Financial Disclosures (TCFD) cover the areas of governance, strategy, risk
management, and metrics and targets. The purpose of the following report, which equates to parts of the TCFD requirements, is
to adequately publicise the risks and opportunities as consequences of climate change and strengthen financial market stability.
134
134
84
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
414-1
414-2
New suppliers that were screened using social criteria
Negative social impacts in the supply chain and actions taken
GRI 415: Public Policy (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
415-1
Political contributions
GRI 416: Customer Health and Safety (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
416-1
Assessment of the health and safety impacts of product and service categories
GRI 418: Customer Privacy (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
418-1
Substantiated complaints concerning breaches of customer privacy and losses
of customer data
GRI 419: Socioeconomic Compliance (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
419-1
131-132
131-132,251
131-132
84
By definition, all of the processes for identifying, assessing and managing climate-related risks are part of Porsche's
risk management.
Taycan
Anja Wassertheurer, Director Corporate and Product Communications
33,250
Restriction of use
We draw attention to the fact that the assur-
ance engagement was conducted for the
Company's purposes and that the report is
intended solely to inform the Company about
the result of the assurance engagement.
As a result, it may not be suitable for another
purpose than the aforementioned. Accord-
ingly, the report is not intended to be used
by third parties for making (financial) deci-
sions based on it. Our responsibility is to
the Company alone. We do not accept any
responsibility to third parties. Our assurance
conclusion is not modified in this respect.
General Engagement Terms and Liability
The "General Engagement Terms for Wirt-
schaftsprüfer and Wirtschaftsprüfungsgesell-
schaften [German Public Auditors and Public
Audit Firms]" dated 1 January 2017 are
applicable to this engagement and also govern
our relations with third parties in the context
of this engagement 7 www.de.ey.com/
general-engagement-terms. In addition,
please refer to the liability provisions con-
tained there in no. 9 and to the exclusion of
liability towards third parties. We accept
no responsibility, liability or other obligations
towards third parties unless we have con-
cluded a written agreement to the contrary
with the respective third party or liability
cannot effectively be precluded.
We make express reference to the fact
that we will not update the report to reflect
events or circumstances arising after it
was issued, unless required to do so by law.
It is the sole responsibility of anyone taking
note of the summarized result of our work
contained in this report to decide whether
and in what way this information is useful
or suitable for their purposes and to supple-
ment, verify or update it by means of their
own review procedures.
Munich, 28 February 2022
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Nicole Richter, Wirtschaftsprüferin
[German Public Auditor)
Hans-Georg Welz, Wirtschaftsprüfer
(German Public Auditor)
268
Based on the assurance procedures per-
formed and the evidence obtained, nothing
has come to our attention that causes us
to believe that the selected key figures that
are marked with the symbol "V" in the report
from 1 January to 31 December 2021 have
not been prepared in all material aspects,
in accordance with the GRI criteria. We do
not express an assurance conclusion on
the prior-year disclosures.
Further information
LEGAL NOTICE
Publisher
Dr. Ing. h.c. F. Porsche AG
D-70435 Stuttgart
Tel. +49 711 911-0
Dr Sebastian Rudolph, Vice President Communications, Sustainability and Politics
Contact persons
Event and Sports Communications
269
Thomas Hagg, Director Event and Sports Communications
Reconciliation of data with the correspond-
ing data in the annual financial statements.
Assurance conclusion
• Evaluation of the presentation of the
selected key disclosures that are marked
with the symbol "V" in the report
Our engagement exclusively refers to the
disclosures marked with the "V" symbol in
the German PDF version of the annual and
sustainability report (hereinafter the "report").
Not subject to our assurance engagement
are prior-year disclosures.
Responsibilities of the executive directors
The executive directors of the Company
are responsible for the preparation of the
report in accordance with the Sustainability
Reporting Standards of the Global Reporting
Initiative (hereafter "GRI criteria") as well
as the selection of the criteria to be assessed.
These responsibilities of the Company's
executive directors include the selection and
application of appropriate sustainability
reporting methods and making assumptions
and estimates about individual disclosures
that are reasonable in the circumstances.
Furthermore, the executive directors are
responsible for such internal control as the
executive directors consider necessary to
enable the preparation of a report that is free
from material misstatement, whether due
to fraud (manipulation of the report) or error.
Independence and quality assurance of
the auditor's firm
We have complied with the German profes-
sional requirements on independence as well
as other professional conduct requirements.
Our audit firm applies the national legal
requirements and professional pronounce-
ments in particular the BS WP/vBP
["Berufssatzung für Wirtschaftsprüfer/ver-
eidigte Buchprüfer": Professional Charter
for German Public Accountants/German
Sworn Auditors] in the exercise of their
Profession and the IDW Standard on Quality
Management issued by the Institute of
Public Auditors in Germany (IDW): Require-
ments for Quality Management in the Audit
Firm (IDW QS 1) and accordingly maintains
a comprehensive quality management
system that includes documented policies
and procedures with regard to compliance
with professional ethical requirements,
professional standards as well as relevant
statutory and other legal requirements.
Responsibilities of the auditor
• Critical review of the draft report to assess
plausibility and consistency
Our responsibility is to express a conclusion
with limited assurance on the selected
key disclosures that are marked with the
symbol "V" in the report based on our
assurance engagement.
In a limited assurance engagement, the
procedures performed are less extensive
than in a reasonable assurance engagement,
and accordingly, a substantially lower level
of assurance is obtained. The selection of
the assurance procedures is subject to the
professional judgment of the auditor.
In the course of our assurance engagement
we have, among other things, performed
the following assurance procedures and
other activities:
⚫ Gain an understanding of the structure
of the Group's sustainability organization
and stakeholder engagement
Inquiries of employees responsible for the
data capture and consolidation as well as
the preparation of the report in order to
assess the sustainability reporting system,
the data capture and compilation methods
as well as internal controls to the extent
relevant for the limited assurance engage-
ment on the selected key disclosures that
are marked with the symbol "V" in the report,
• Identification of likely risks of material
misstatement
Inspection of the relevant documentation
of the systems and processes for com-
piling, aggregating and validating data,
Inquiries and inspection of documents
on a sample basis of the disclosures
that are marked with the symbol "V" in
the report at the sites Stuttgart
and Leipzig
Analytical procedures at the level of
the Group regarding the quality of the
reported data
We conducted our assurance engagement
in accordance with International Standard
on Assurance Engagements (ISAE) 3000
(Revised): "Assurance Engagements other
than Audits or Reviews of Historical Financial
Information" issued by the IAASB. This
standard requires that we plan and perform
the assurance engagement to obtain limited
assurance about whether any matters have
come to our attention that cause us to believe
that the selected key disclosures that are
marked with the symbol "V" in the report of
the Company are not prepared, in all material
respects, in accordance with the GRI criteria.
Marc Lieb, Team Leader Sports Communications
Holger Eckhardt, Spokesperson GT and Customer Sports, Esports
Nicole Hettesheimer, PR Specialist Brand Ambassadors Management
Markus Rothermel, Spokesperson Sports Communications
Viktoria Wohlrapp, Spokesperson Formula E and Brand Ambassadors
Politics and Society
Proofreading
Siham Schahadat, copyedit24
Post-production
Publication Partners
Medienkompetenz GmbH
Printing
Druckerei Vogl GmbH & Co. KG
Paper
Lessebo Design Smooth Bright
Römerturm JUPP ECH ÖKO
Römerturm EXTRACT PITCH
Art direction
Meiré und Meiré
External image rights
Mischa Keijser/Image Source,
Getty Images (p. 14 and p. 88)
Catherine Delahaye/Digital Vision,
Getty Images (p. 23)
AA+W, Adobe Stock (p. 31)
Alvaro Tejero/EyeEm, Getty Images (p. 81)
Singh Lens, Shutterstock (p. 110)
Westend61, Getty Images (p. 119)
Chrupka, Getty Images (p. 143)
Sitthiphong, Getty Images (p. 183)
7 www.newsroom.porsche.com/reports
Porsche does not make a distinction
Maskot, Getty Images (p. 11)
Conceptualised by
Meiré und Meiré
Marcus Braue, Specialist Sustainability Reporting and Stakeholder Survey
Sabrina Damme, PR Specialist Corporate and Product Communications
Friederike Gaẞmann, PR Specialist Corporate and Product Communications
Daniela Gutfleisch, Manager Channels and Media Publications
Manuel Zagovec, Manager Film/Photo Editing
Gundula Maronde, Director Communications Strategy and Reputation
Cristian Aleo, Coordinator Sustainability Reporting
Daniela Rathe, Director Politics and Society
Maximilian Steiner, Coordinator Stakeholder Management
Strategy, Planning and IR
Frank Scholtys, Manager Strategy, Planning and IR
Corporate and Product Communications
Christian Weiss, Manager Corporate and Brand Communications, Spokesperson Production
and Crisis Communications
Peter Gräve, Spokesperson VW Group Affairs, Corporate Strategy and Procurement
Stefan Mayr-Uhlmann, Spokesperson Finance, Digital and IT
Matthias Rauter, Spokesperson Human Resources and Funding Projects
Nadescha Vornehm, Spokesperson Sales and Marketing
Hermann-Josef Stappen, Spokesperson Research and Development, Technology Communications
Jonas Bierschneider, PR Specialist Model Series 911 and 718
Oliver Hilger, Spokesperson Model Series 911 and 718
Jan Klonz, PR Specialist Connected Car and Future Technologies
Christoph Lungwitz, Spokesperson Innovations (acting)
Nadine Toberer, Spokesperson Design, Lifestyle and Brand Communications
Ben Weinberger, Spokesperson Macan, Cayenne and Panamera
Site Communications
Kristin Bergemann, Head of Corporate Communications Porsche Leipzig GmbH
Jana-Kristin Jessen, PR Specialist Site Communications Weissach
Project team
To Dr. Ing. h.c. F. Porsche AG, Stuttgart
We have performed a limited assurance
engagement on selected sustainability
disclosures of the annual and sustainability
report of Dr. Ing. h.c. F. Porsche AG, Stuttgart,
(hereinafter the "Company") for the period
from 1 January 2021 to 31 December 2021.
to the German version of the annual
and sustainability report of Dr. Ing. h.c. F.
Porsche AG. The following text is a trans-
lation of the original German independent
assurance report.
The assurance engagement performed
by Ernst & Young (EY) relates exclusively
on a limited assurance engagement
Equity
Fixed assets
€ million
51,382
45,491
42,366
€ million
22,935
Total assets
20,224
€ million
19,793
18,130
17,982
Investment 3
€ million
3,043
2,772
17,428
28,518
28,695
33,138
21,832
31,192
Units
38,474
29,450
1,386
Employees 2
number
36,996
36,359
35,429
Personnel expenses
€ million
4,478
4,230
4,003
Financials
Sales revenue
€ million
2,993
Units
Cost of materials
19,363
€ million
5,729
4,397
4,054
Profit after tax
€ million
4,038
3,166
Profit before tax
2,801
3 Relates to investments in intangible assets and property, plant and equipment without additions to right of use assets according to "IFRS 16 - Leases".
Porsche Newsroom provides more information and an interactive comparison of our current financial and volume data.
By selecting various parameters such as time period, indicator type or display type, you can generate and save
individual comparisons in different formats.
7 www.newsroom.porsche.com/charts
Further information
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
267
INDEPENDENT AUDITOR'S REPORT
1 Including 16.953 vehicles that are not eligible for registration at the time of factory delivery due to the semiconductor supply shortage.
2 As of 31 December.
4,397
4,177
5,284
16,661
15,956
Depreciation, amortization and impairment losses
€ million
3,214
3,357
3,044
Cash flows from operating activities
€ million
6,416
4,140
4,486
Operating profit (EBIT)
€ million
5,314
4,177
3,862
Operating profit (EBIT) before special items
€ million
€ million
GRI 404: Training and Education (2016)
271
403-9
consumption
Power
WLTP
NEDC
Model
Electric vehicles
A+++
A+++
A+++
40-42
41-42
39-40
39-40
92-87
92-86
43-46
41-43
85-75
Power output
[kW]
Power
[PS]
combined
CO₂ emissions
combined
476
Work-related injuries
Taycan with Performance battery Plus
0 354-431 382-450
24.8-20.4
0
28.0
3.7-3.3 26.5-25.6
4.0-3.8 25.9-25.3
4.1-3.8 25.9-25.4
408
Taycan with Performance battery
Taycan
class
efficiency
urban
[km]
Power
consumption CO₂ emissions Electric range Electric range Energy
combined combined combined
[kWh/100km] [g/km]
[km]
[kWh/100 km] [g/km]
300
28.7
75-72
76-73
3.3-3.2
2.6-2.5 22.4-22.0
462
340
Cayenne E-Hybrid Coupé
A+++
44-46
41-43
83-75
A+++
44-48
41-44
83-71
3.7-3.1 26.5-25.1
3.7-3.3 26.5-25.6
58-56
2.5-2.4 22.0-21.6
60-58
3.7-3.2 26.5-25.4
85-73
41-43
680
500
Cayenne Turbo S E-Hybrid Coupé
23.3-22.8
3.3-3.2
680
500
23.5 23.0
Cayenne Turbo S E-Hybrid
22.4-22.0
2.6-2.5
462
340
Cayenne E-Hybrid Coupé Platinum Edition
A+++
43-47
60-58
0
25.4-21.5
Taycan Sport Turismo with Performance battery
0
26.1
571
420
Taycan 4S Sport Turismo with Performance battery Plus
A+++
449-534
358-441
0
24.6-20.4
0
530
390
Taycan 4S Sport Turismo with Performance battery
A+++
24.7-21.0
0
417-498
516-604
0
25.9
598
440
Taycan GTS
A+++
462-532
389-464 437-524
388-452
26.4-22.6
0
28.1
571
420
Taycan 4S Cross Turismo
A+++
0
0
26.0-21.9
0
476
350
Taycan 4 Cross Turismo
0
24.6-21.0
0
27.4
28.1
476
Taycan Sport Turismo with Performance battery Plus
0
0
24.2-20.2
0
26.8
408
300
350
462
0
0
27.0
571
420
Taycan 4S with Performance battery Plus
A+++
383-466
A+++
A+++
A+++
A+++
A+++
26.4-22.4
463-541
0
25.6-21.0
0
26.2
530
390
Taycan 4S with Performance battery
407-484 460-521
358-433 433-518
417-492 493-563
389-456
335-408
340
Cayenne E-Hybrid Platinum Edition
58-56
340
A+++
52-56
49-56
57-45
2.5-2.0 24.4-22.6
49-47
A+++
52-56
49-56
57-45
24.4-22.6
2.5-2.0
49-47
17.5-17.0
17.5-17.0
462
2.2
18.0-17.4
51-49
51-55
47-54
60-49
24.9 23.1
2.7-2.1
51-49
18.2-17.5
2.2-2.1
2.2-2.1
2.3-2.2
340
A+++
50-55
48-55
59-47
24.6-22.8
2.6-2.1
462
462
340
462
weighted
CO₂ emissions
combined
combined
consumption
Electric range
consumption consumption CO₂ emissions
Power
weighted
Fuel
consumption
combined
Power
Fuel
WLTP
NEDC
Model
Plug-in hybrids
258
Power output Power
[kW]
A+++
combined
weighted
combined
340
Panamera 4S E-Hybrid
Panamera 4 E-Hybrid Sport Turismo
Panamera 4 E-Hybrid Executive
Panamera 4 E-Hybrid Platinum Edition
Panamera 4 E-Hybrid
Panamera
combined
Energy
efficiency
class
(EAER)
[km]
[kWh/100 km] [g/km]
[1/100 km]
[kWh/100 km] [g/km]
[1/100 km]
[PS]
Electric range urban
(EAER city)
[km]
23.3 20.3
412
2.2-2.0
Panamera Turbo S E-Hybrid Sport Turismo
63
22.7
2.8
700
515
Panamera Turbo S E-Hybrid Executive
A+++
A+++
A+++
A+++
49-50
48-50
66-62
2.9-2.7 24.6-24.0
62
21.8
2.7
515
700
2.8
22.8
22.0-21.6
2.5-2.4
462
340
Cayenne E-Hybrid
Cayenne
A+++
700
49-50
69-65
A+++
49
47-48
67-64
2.9-2.8 24.7-24.2
3.0-2.9 24.9-24.4
63
46-47
515
Panamera Turbo S E-Hybrid
51-55
65-54
2.9-2.4 24.6-23.0
53-50
19.5-17.6
2.3-2.2
560
412
46-51
Panamera 4S E-Hybrid Executive
49-54
46-53
64-50
24.5-22.6
2.8-2.2
51-47
18.1-17.4
A+++
560
48-52
412
47-54
60-49
2.7-2.1 24.9-23.1
51-49
49-53
45-50
67-55
Panamera 4S E-Hybrid Sport Turismo
3.0-2.4 24.9-23.1
19.3-17.4
18.2-17.5
2.3-2.2
462
340
Panamera 4 E-Hybrid Sport Turismo Platinum Edition
2.2-2.1
560
52-49
0
350
539-625
305-3
100
100
305-2 Energy indirect (Scope 2) GHG emissions
Direct (Scope 1) GHG emissions
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
305-1
GRI 305: Emissions (2016)
Other indirect (Scope 3) GHG emissions
304-3 Habitats protected or restored
GRI 304: Biodiversity (2016)
126-127
78-81, 126-129, 131-132
82-84
244
244
98-99
98-99
244
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
305-4
GHG emissions intensity
4-5,80-81,254
82-83,86
GRI 306: Waste (2020)
242
242
242-243
243
242
242-243
242-243
97-99
305-7 Nitrogen oxides (NOx), sulfur oxides (SOX) and other significant air emissions
Emissions of ozone-depleting substances (ODS)
305-6
Reduction of GHG emissions
305-5
82-87
80-81
80-81
303-3 Water withdrawal
303-4 Water discharge
303-5 Water consumption
→ Online GRI index
Online GRI index
→ Online GRI index
124
Omission/comment
Page
302-3 Energy intensity
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
302-1 Energy consumption within the organization
GRI 302: Energy (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
301-1
Materials used by weight or volume
GRI 301: Materials (2016)
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
271
64-70
5,62-75,256-258
271
Omission/comment
Page
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
102-56 External assurance
Porsche reports comprehensive
216-237 financial key figures and the economic
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
131-132
251
→ Online GRI index
Interactions with water as a shared resource
Management of water discharge-related impacts
303-2
114-119, 138-147,246-250
131-132, 208-211,251
8-61, 208-211,251
94-100
82-84, 148-159
303-1
62-70, 139, 216-237,246-251
98-99
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
64-70
GRI 303: Water and Effluents (2018)
241
240-241
97
98
244
126-127
126-127
→ Online GRI index
126-127
value distributed.
439-504
98-99
→ Online GRI index
118-119
118
118
Omission/comment
Page
Occupational health and safety management system
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
403-1
118-119
GRI 403: Occupational Health and Safety (2018)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
402-1
GRI 402: Labor/Management Relations (2016)
Material topics
262
261
114-119
248
248
131-132
Minimum notice periods regarding operational changes
403-2
403-3
Hazard identification, risk assessment, and incident investigation
Occupational health services
118-119
Workers covered by an occupational health and safety management system
403-8
118-119
Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships
403-7
118-119
Promotion of worker health
403-6
118-119
Worker training on occupational health and safety
403-5
118-119
Worker participation, consultation, and communication on occupational health
and safety
403-4
118-119
118-119
131-132,251
131-132
→ Online GRI index
97,126-127
2
2
2
2,86
86-87
2,86-87
245
245
306-4
245
Waste generated
80, 82-83,86
82-83,86-87
306-3
98-99
306-2
98-99
306-1
2,260
118
82-83
260-262
Waste generation and significant waste-related impacts
Management of significant waste-related impacts
For reasons of confidentiality,
Porsche doesnot publish the
required information.
Further information
New employee hires and employee turnover
Parental leave
401-3
401-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 401: Employment (2016)
New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken
308-2
308-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 308: Supplier Environmental Assessment (2016)
307-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
Non-compliance with environmental laws and regulations
GRI 307: Environmental Compliance (2016)
306-5 Waste directed to disposal
Waste diverted from disposal
2,268-269
102-55 GRI content index
25.7
GRI
General Disclosures
GRI 101 Foundation (2016)
GRI 102 General Disclosures (2016)
Organizational profile
Name of the organization
Activities, brands, products, and services
GRI standards
102-1
102-3
Location of headquarters
102-4
Location of operations
102-5
Ownership and legal form
102-2
GRI 206: Anti-competitive Behavior (2016)
Communication and training about anti-corruption policies and procedures
205-2
DISCLOSURES SERVICE
2022
Material topics
GRI 201: Economic Performance (2016)
201-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
Direct economic value generated and distributed
201-4
Financial assistance received from government
This report has been prepared in accordance with the Global Reporting Initiative (GRI) standards on the basis of the "Core" option.
The report was submitted to the GRI services team for implementation of the GRI Materiality Disclosures Service. The description
of the "materiality-related disclosures" (102-40 to 102-49) was confirmed as correct. The service was performed on the
German language version of the report. A detailed version of the GRI Content Index is available in the
Porsche Newsroom:
www.newsroom.porsche.com/reports
GRI 204: Procurement Practices (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
204-1 Proportion of spending on local suppliers
GRI 205: Anti-corruption (2016)
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
205-1 Operations assessed for risks related to corruption
102-6
Markets served
102-7
Scale of the organization
102-41 Collective bargaining agreements
102-42 Identifying and selecting stakeholders
102-43 Approach to stakeholder engagement
102-44 Key topics and concerns raised
Reporting practice
102-45 Entities included in the consolidated financial statements
102-46 Defining report content and topic Boundaries
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in reporting
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the report
102-54 Claims of reporting in accordance with the GRI Standards
102-40 List of stakeholder groups
MATERIALITY
Stakeholder engagement
102-20 Executive-level responsibility for economic, environmental, and social topics
102-8
Information on employees and other workers
102-9 Supply chain
102-10 Significant changes to the organization and its supply chain
102-11 Precautionary principle or approach
102-12 External initiatives
102-13 Membership of associations
Strategy
102-14 Statement from senior decision-maker
Ethics and integrity
102-16 Values, principles, standards, and norms of behavior
102-17 Mechanisms for advice and concerns about ethics
Leadership
102-18 Governance structure
102-19 Delegating authority
102-21 Consulting stakeholders on economic, environmental, and social topics
GRI CONTENT INDEX
260
28.7
500
680
26.3
0
24.2-20.9
0
Taycan Turbo Sport Turismo
424-491
A+++
Taycan Turbo Cross Turismo
Taycan Turbo S
Taycan Turbo S Sport Turismo
Taycan Turbo S Cross Turismo
500
680
531 620
A+++
432-498
383-452
598
26.0
0
24.1-21.0
0
424-490
524-616
A+++
Taycan Turbo
500
680
28.0
0
26.6-22.9
0
259
0
25.9-22.6
0 395-452
29.4
0
26.4-24.4
0
430-458
388-419
518-565
A+++
460-495
A+++
Current consumption figures can be found at
7 www.porsche.com/germany/verbrauchsinformationen
Further information
A+++
1 Note
The specified consumption and emission
figures have been calculated according
to the measurement procedures prescribed by
law. On 1 September 2018, the New
European Driving Cycle (NEDC) was replaced
by the Worldwide Harmonised Light Vehicle
Test Procedure (WLTP). Owing to the more
realistic test conditions, the fuel/power
consumption and CO2 emissions measured
according to the WLTP will, in many cases,
be higher than those measured according to
the NEDC. We are currently still required by
law to state the NEDC figures irrespective of
the typing procedure used. Any WLTP figures
specified are given voluntarily. All new vehicles
offered by Porsche are type-approved accord-
ing to the WLTP. The NEFC figures stated are
therefore derived from the WLTP figures. In
cases where the figures are specified as value
ranges, these do not refer to a particular
individual vehicle and do not constitute part
of the sales offering. They are intended
exclusively as a means of comparison between
different vehicle types. Additional equipment
and accessories (e.g. attachments, different
tyre formats, etc.) may change the relevant
vehicle parameters, such as weight, rolling
resistance and aerodynamics, and, in conjunc-
tion with weather and traffic conditions
and individual driving style, may affect fuel/
power consumption, CO2 emissions, range
and the performance figures for the vehicle.
For further information on the differences
between the WLTP and NEDC, please visit
7 www.porsche.com/wltp. Further informa-
tion on official fuel consumption figures
and the official specific CO2 emissions of new
passenger cars can be found in the "Guide
on the fuel economy, CO₂ emissions and power
consumption of all new passenger car models",
which is available free of charge at all sales
dealerships and from DAT.
761
440
560
24.0-22.5
438-510
A+++
560
761
28.5
0
25.6-24.3
0
390-416
434-477
A+++
560
761
26.3
0
0
Taycan GTS Sport Turismo
PORSCHE
ANDRÉ LOTTERER IN THE PORSCHE 99X ELECTRIC
PORSCHE
90 years of engineering services
Ninety years of Porsche engineering services
were celebrated in April. Ferdinand Porsche
had his engineering office in Stuttgart added
to the Commercial Register on 25 April 1931.
Porsche Engineering continues this tradition
TAG
HEUE
LOT
PORS
the 2022/2023 season, when the further
developed Gen3 generation of racing cars
will be used. This was announced by the
sports car manufacturer in March. Fittingly,
Porsche secured its first podium position
of the season at the race in Rome at the
beginning of April, when Pascal Wehrlein
and the TAG Heuer Porsche Formula E
team came third in the Rome E-Prix. André
Lotterer likewise secured a spot on the
podium in the next race held in Valencia,
finishing in second place.
BOSS
36
GTERS
BB GO 6473
Mobil
TEQUIPMENT
CHE
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
GTS
ID
AMACAN GTS
911 TARGA 4 GTS
of five new GTS models, launching the new
generation with more power and more
driving dynamics than ever before. The
six-cylinder boxer engine delivers 353 kW
(480 PS) - 22 kW (30 PS) more than
the current 911 Carrera S or the previous
911 GTS. The GTS models are available
with rear- or all-wheel drive, as a Coupé,
a Cabriolet and a four-wheel drive Targa.
They feature eight-speed Porsche
dualclutch transmission or seven-speed
manual transmission and GTS-specific
suspension with Porsche Active Suspension
Management (PASM) and the 911 Turbo's
high-performance brakes. Black contrast-
ing body elements and darkened head-
lights are characteristic of the sporty yet
understated look.
The 911 family grew with the addition
Five new 911 GTS models
MORE OF WHAT YOU LOVE.
23
Nordschleife record set by the 911 GT2 RS
In June, Porsche set a new record for road-
legal production sports cars on the Nord-
schleife of the Nürburgring. In the presence
of a notary, Porsche development driver
Lars Kern achieved a fastest time of
6:43.300 minutes. The 515 kW (700 PS)
911 GT2 RS driven by Kern was fitted with
a Manthey Performance Kit. Driving on
road-legal Michelin Pilot Sport Cup 2 R
tyres, Kern shaved 4.747 seconds off the
previous record and hit an average speed
of 185.87 km/h. Lars Kern succeeded
in breaking the record in spite of the
hot summer conditions and an asphalt
temperature of 41 degrees.
Sustainability an important factor
Turbo GT
Clear commitment to Formula E
Porsche will compete in the ABB FIA
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
Porsche takes a stand for diversity
On the occasion of Diversity Day on 18 May,
Porsche again sent a clear message of backing
tolerance and of being against exclusion and
discrimination. During a themed week, the
company emphasised the importance of diver-
sity of views within the workforce. Twenty-one
digital dialogue formats addressed the value
of and opportunities offered by diversity. In add-
ition, a 911 was decorated with messages on
the topic of Diversity@Porsche. In adding their
signatures to the sports car, the Porsche Execu-
tive Board acknowledged diversity of views
as an integral part of the corporate culture.
Andreas Haffner, Member of the Executive Board
responsible for Human Resources: "Our four
key values are passion, pioneering spirit, sporti-
ness and one family. Like in any good family,
we adopt an open and respectful approach to
others. We accept each other in our diversity
and complement one another with our individual
perspectives and skills, making us even more
creative and effective as a team."
The importance of diversity of
views within the workforce
was emphasised.
Porsche held a themed
week as a signal for tolerance
and against discrimination.
23
MARCO SCHUBERT
SARAH SIMPSON
Porsche invested a high double-digit million
figure in the new company Cellforce Group
GmbH. This joint venture with the partner
Customcells sees Porsche moving into the
manufacture of high-performance battery
cells. "As a new Porsche subsidiary, the
Cellforce Group will be instrumental in
driving forward the research, development,
production and sale of high-performance
battery cells," says Oliver Blume, Chairman
of the Executive Board of Porsche AG. Porsche
holds an 83.75 per cent majority stake in
the Cellforce Group. The new joint venture
is based in Tübingen. A planned production
facility is set to have annual capacity of
at least 100 MWh. This equates to high-
performance battery cells for 1,000 vehicles.
The workforce is set to swell from its current
approximately 20 jointly recruited employees
to up to 80 by 2025. Project funding of
around 60 million euros is being provided by
the Federal Republic of Germany and the
state of Baden-Württemberg. Customcells
is one of the world's leading companies in the
development of special lithium-ion battery
cells for high performance.
Joint venture for high-performance
battery cells
the partner Customcells
sees Porsche moving into
the manufacture of high-
performance battery cells.
Porsche invested a high
double-digit million figure
in the new company
Cellforce Group GmbH.
This joint venture with
A survey conducted by forsa in June on behalf
of Porsche Consulting found that sustainabil-
ity was a success factor in the competition
for talented individuals in the labour market.
The opinion polling institute forsa conducted
a representative survey among employees in
Germany. Among other things, it revealed that
four out of ten employees think their employ-
er is still doing too little in the area of environ-
mental and climate protection and should
make much more of a commitment. A third
of the employees even said they would not
apply to the company now for this reason.
Sustainability has an important part to play
in the day-to-day work of more than half the
German population. However, one in three
said there was no way for them to themselves
do their bit for sustainability within the com-
pany. Six out of ten employees said they
would like to see the topic play a bigger part
in their day-to-day work.
to securing talent
New faces in European sales
Marco Schubert became the new Vice
President Region Europe on 1 July, following in
the footsteps of Barbara Frenkel, who moved
to the Porsche Executive Board. Schubert was
President of the Audi Sales Division China
from 2018. Prior to this, he managed Asia and
overseas sales at Škoda. In the preceding
years, he was Managing Director of Audi in
Sweden and also managed the Northern Eur-
ope region. Two months later, on 1 Septem-
ber, Sarah Simpson became Chief Executive
Officer of Porsche Cars Great Britain, taking
over from Marcus Eckermann, who took on a
new role at Porsche AG. Sarah Simpson has
worked for the Volkswagen Group for more
than 20 years and has spent the last 10 years
at Bentley Motors. She became Bentley's Re-
gional Director in its home market, the UK, in
2014. She has also been responsible for other
international regions - initially Asia-Pacific,
followed by the Middle East, Africa and India
from 2020.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
22
20
Porsche electrified its fleet of company cars in the spring. Many managers have been authorised
to drive a company car and now often get about in a Taycan or a plug-in hybrid. Thanks to at-
tractive offers, more and more employees who are entitled to car leasing are additionally opting
for electric models. This is having a noticeable impact on the Porsche fleet - by the end of
the year, the proportion of electric and plug-in hybrid sports cars had doubled to 50 per cent.
Porsche is pursuing a three-pronged approach consisting of efficient internal combustion
engines, plug-in hybrids and all-electric sports cars. Managers also have the option of choosing
a 911, a 718 or a Macan, all three of which are only available with an internal combustion engine.
Porsche "electrifies" its managers
Test-driving of the all-electric Macan
Test-driving of the all-electric Porsche
Macan began in May. The Macan electric
is scheduled to be rolled out in 2023.
Beforehand, the camouflaged prototypes
will complete some three million test kilo-
metres under a variety of conditions around
the world. Before road testing, the technol-
ogy was tested virtually on digital proto-
types, in other words on calculation models
which replicate a vehicle's characteristics.
The Macan electric will be equipped with
the innovative 800-volt architecture. It is
expected to make an impression among
other things with its long range, highly effi-
cient quick charging and reproducible best-
in-class performance figures and is to be
the sportiest model in its segment.
A sustainable career with Porsche
In April, Porsche came "face to face" with sus-
tainability in the Sustainable Career employ-
er campaign, Porsche presented employees
who are helping to reduce the company's envir-
onmental footprint. They are driven by the
goal of making Porsche the most sustainable
brand for exclusive and sporty mobility. The
campaign was launched with three clips on the
topics of CO2 reduction, species conservation
and electrification. It became clear that the
Porsche employees' passion goes above and
beyond sports car construction. They are just
as dedicated to, for example, the company's
own biotopes, its bee colonies which produce
the company's own Turbienchen honey and
a rock dust facility which is helping to turn car
paint residues into cement.
On the occasion of Earth Day on 22 April,
Porsche underscored its sustainable business
ambitions. With #Project 1 Hour, the employ-
ees were encouraged to spend an hour ad-
dressing this issue. Porsche put facts about
and the consequences of the climate crisis to-
gether in an online seminar, gave the employ-
ees food for thought with virtual presentations
and invited them to participate in a climate
quiz with the aim of raising people's aware-
ness and broadening their knowledge regard-
ing how they themselves can combat climate
change. The message clearly sent was that
everyone can play a part in preventing CO₂
emissions. #Project 1 Hour is a campaign of
the entire Volkswagen Group, which declared
Earth Day to be Volkswagen Climate Day.
Climate action day
20
S&GO 604E
PORSCHE
MACAN DEVELOPMENT DRIVE WITH CAMOUFLAGED VEHICLES
19
Cooperation with Penske
Porsche Motorsport and the US racing team
Team Penske agreed on close cooperation
in May. Starting in the 2023 season, the part-
ners will compete in the major endurance
racing series around the world. Using the
spectacular prototypes of the LMDh class,
which are capable of achieving overall wins,
Porsche Penske Motorsport will manage
the works appearances in the FIA World
Endurance Championship (WEC) and the
IMSA WeatherTech SportsCar Championship
(IWSC) in the USA. Two hybrid prototypes
sporting the Porsche colours will compete
in the new top class in both events. The
acronym LMDh stands for Le Mans Daytona
hybrid. The prototypes will also be put to
use by customer teams in both championships
in their first year. The cars weighing
around just 1,000 kilograms are accelerated
by a 500 kW (680 PS) hybrid drive.
Ninety years of Porsche
engineering services were
celebrated in April. Ferdinand
Porsche had his engineering
office in Stuttgart added to
the Commercial Register on
25 April 1931.
Important events
to this day. The wholly owned subsidiary of
Porsche AG is currently expertly focusing
among other things on digitalisation. The em-
ployees merge their keen understanding of
vehicles with software expertise. Engineers
and software developers analyse global and
local market trends, further develop technolo-
gies and methods, and roll them out in mass
production. Porsche Engineering is a global
development network comprising nearly
1,500 employees at sites in Germany, the
Czech Republic, Romania, Italy and China.
Panamera 4S
S&GO 9988
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
FLEXIBILITY THANKS TO MOBILE WORKING
THE TALENTED YOUNG PLAYERS OF FC ERZGEBIRGE AUE
14-15
Formula E World Championship again in
Porsche sponsors team's young players
In July, Porsche's partner football club FC
Erzgebirge Aue in Saxony became part
of Porsche's youth development programme
Turbo for Talent. Erzgebirge Aue stands
for tradition and is a regional beacon with a
large and loyal fan base. The club allows
children and young people to develop per-
sonally through sports. In addition to their
sporting development, the young people's
schooling is not allowed to fall by the
wayside. FC Erzgebirge Aue is the fifth foot-
ball club to join the Turbo for Talent youth
development programme.
of wheel paintwork.
The Porsche Exclusive Manufaktur has
expanded its services. Anyone who buys
a Porsche can give it their own, personal
touch. The new options include a variety
of car wraps, personalised start numbers,
printed floor mats, illuminated door entry
strips, logo projectors in the vehicle doors.
and personalised wheel paintwork. If they
wish to, the customer can become a designer,
freely choosing colours, logos, lettering and
texts. Personalised design is made pos-
sible by the Porsche Car Configurator. For
example, the customer's own signature
can be applied to interior elements such as
the leather-lined lid of the centre console.
The portfolio is rounded off by personal-
ised car wraps and the customer's choice
Design your own Porsche
ON A PORSCHE SAFARI WITH THE BEEKEEPER
a grazing concept since 2002.
The site comprises a total of
132 hectares.
site since 2002, with wild oxen and Exmoor
ponies and specially created ponds and wet-
lands. Until October, there were also 11 Finn-
sheep grazing on the grounds. These grazing
landscape conservationists created a mosaic
of patches with long and short grass, thereby
making a contribution to conserving diverse
habitats. There are also around three million
honey bees living in this off-road biotope,
where they can find plenty of food and polli-
nate the plants.
Porsche Leipzig championing biodiversity
In spring, an initiative of the Saxony State
Foundation for Nature and the Environment
registered more than 12,600 square metres
of Porsche Leipzig's off-road terrain as
flowering meadows. These are to serve as a
habitat for insects. Porsche has been applying
a grazing concept across the 132-hectare
Taycan added to Porsche Drive Subscription
Porsche Drive Subscription was made even
more attractive in May when it became pos-
sible for new customers and Porsche fans to
also subscribe to the all-electric Taycan. This
offer is aimed among others at curious but as
yet undecided customers. They are able to
put the electromobility experience to the test
for six months.
a second site in Romania in
June. The company is further
expanding its innovation
network with a new research
and development office in
Timişoara.
Porsche Engineering opened
Second engineering site in Romania
Porsche Engineering opened a second site in
Romania in June. With its new research and
development office in Timişoara, the company
is further expanding its innovation network
for development of the smart and connected
vehicle of the future. Porsche Engineering
established its first base in the country's in-
terior in Cluj-Napoca in 2016. This site now
has a workforce of 250 working on high-tech
automotive projects. The plan is for there to
be 200 skilled workers working in Timişoara
in the medium term too. The company is
interested in software developers who can
work on various automotive projects. The
focus is on trends such as highly automated
driving functions, machine learning and
virtual energy management.
More mobile working made possible
Porsche expanded the mobile working op-
tions it offers in May. Previously, employees
were able to work from anywhere or from
home two days a week. Since May, up to
12 days a month have been possible. This
is the company's response to its positive
experience during the pandemic. Employees
have had the right to work from home since
2014. Porsche introduced a variety of meas-
ures early on to achieve a better work-life
balance, including flexible working hours, care
leave and voluntary sabbaticals.
Porsche has been applying
36
First SUV with a GT label - the new Cayenne Turbo GT
a 471 kW (640 PS) four-litre V8 biturbo engine - that's 67 kW (90 PS) more than the Cayenne
Turbo Coupé. It can hit a top speed of 300 km/h - an increase of 14 km/h. The SUV has an
even sportier look and is available exclusively as a four-seater Coupé. The Cayenne Turbo GT
comes with all the available chassis systems fitted as standard as well as specially developed
performance tyres. The engine and chassis have a distinct set-up resulting in a harmonious
overall concept with excellent circuit characteristics, as demonstrated by Porsche test driver
Lars Kern, who completed a lap of the 20.832 km Nürburgring Nordschleife in 7:38.9 minutes
in a Cayenne Turbo GT, thereby setting a new official SUV record.
35
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
34
Points for Porsche 99X Electric cars in London
Following his fastest time in the qualifying
session, André Lotterer narrowly missed out
on a third podium finish of the season for the
TAG Heuer Porsche Formula E team in the
London E-Prix. In a strong field of 24 starters,
he clinched fourth place with his Porsche 99X
Electric on the ExCeL Track in East London's
historic Docklands. This marked Porsche's
racing premiere in the British city. The 2.25-
kilometre course is the most spectacular in
Formula E as it includes a section that passes
through an exhibition centre, presenting the
drivers and teams with some very particular
challenges. Pascal Wehrlein of Germany like-
wise picked up points in the second Porsche
99X Electric, finishing in tenth place.
Passing the baton -
Barbara Frenkel stepped
into Uwe-Karsten Städter's
Executive Board position
in August.
A million euros of immediate aid
In July, Porsche AG supported the Aktion
Deutschland Hilft e.V. coalition in its work in
the areas hit by the floods with a donation in
the amount of one million euros. The funds
went towards immediate aid for the flood
victims and strengthened the work of the vari-
ous rescue organisations in the affected
regions. Porsche additionally called upon its
employees to make private donations. The
company has maintained a special relation-
ship with the people in the areas affected by
the floods for many decades. In particular in
the region around the Nürburgring, many
friendships and partnerships have grown on
the basis of motorsport. Oliver Blume: "We are
in close contact with our friends and partners.
We know that the situation there is desperate.
Many have been affected themselves or are
volunteering as relief workers. So it is all the
more important that we pull together now.
Our Motorsport colleagues took emergency
generators and other relief supplies to the
Eifel region as soon as the news broke, for ex-
ample. Our donations will now provide add-
itional help to alleviate some of the suffering."
Development of high-performance batteries
Porsche found a new cooperation partner
for electric powertrains - together with
BASF, the sports car manufacturer will
develop a powerful lithium-ion battery for
electric vehicles. BASF was selected by the
Cellforce Group, which is a joint venture
between Porsche AG and Customcells
Itzehoe GmbH. BASF will provide high-en-
ergy HEDTM NCM cathode materials for
high-performance battery cells designed
to offer quick charging and high energy
density. The Cellforce Group will produce
the high-performance batteries. The
Cellforce Group's production facility is
scheduled to go into operation in 2024
with initial annual capacity of at least
100 MWh, producing batteries for around
1,000 motorsport and high-performance
vehicles. The partnership is a win-win situ-
ation. European sources for the materials
nickel and cobalt offer good security of
supply and short transport journeys.
And production waste will be recycled at
BASF's prototype facility - strong argu-
ments in favour of collaboration with BASF.
A great place in New York:
top racing result for
TAG Heuer's and Porsche's
Formula E team.
Porsche Formula E team proved itself for the
first time on the Brooklyn Street Circuit in Red
Hook, Brooklyn. Porsche secured important
championship points in two races in the ABB
FIA Formula E World Championship. André
Lotterer came eighth in race 10 in the Porsche
99X Electric. And in race 11, Lotterer and
Pascal Wehrlein were within striking distance
of the frontrunners, but missed out on third
place by less than three seconds. Race 11 was
the best team result for the TAG Heuer Porsche
Formula E team in only its second racing sea-
son. Offering views of Manhattan and the
Statue of Liberty, the street circuit is incred-
ibly attractive. Formula E is the world's first
all-electric racing series and, as an accelerator
of innovative and sustainable mobility technolo-
gies, has been bringing thrilling motorsport to
people in cities since 2014. More automobile
manufacturers competed in this than in any
other racing series this season, which crowned
both a driver and a team champion for the first
time. This made the races all the more inter-
esting and highly competitive.
At the beginning of July, the TAG Heuer
All-electric on the streets of Brooklyn
ANDRÉ LOTTERER IN THE PORSCHE 99X ELECTRIC ON THE BROOKLYN STREET CIRCUIT
UTATTACK MODE
enel x
enely
Weissach working with 5G since August
Porsche entered the 5G age together with
Vodafone when Hannes Ametsreiter, CEO
of Vodafone Germany, and Michael Steiner,
Member of the Porsche Executive Board
responsible for Research and Development,
switched on a 5G network at the Weissach
Development Centre on 31 August. 5G of-
fers secure and instantaneous transfer of
data between vehicles, people and ma-
chines. This reduces the data interchange
time lag, otherwise known as latency, to
around 10 milliseconds. The 5G network in
Weissach is one of the fastest in Europe. 5G
and multi-access edge computing (MEC)
are set to improve road safety. Ideally, cars
will communicate with one another and give
real-time warnings of accident hazards.
S 5G 2021
HANNES AMETSREITER AND MICHAEL STEINER SWITCHED ON THE 5G NETWORK IN WEISSACH
150 new trainees and students
Porsche in Zuffenhausen welcomed 150
new trainees and students from the Baden-
Württemberg Cooperative State University
(DHBW) at the start of the new training year.
The company offers trainees and students
training in, among other things, 3D printing,
direct printing methods and human-robot
collaboration. Porsche is training 511 young
people in Zuffenhausen. Porsche offers all of
its trainees and students permanent contracts.
BOSS
PORSCHE
MICHELIN
Maxxisctric
Mobil
L
37
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
enelx enelx enex enex PER FER
enelx enelx enel x enel x enelx enelx enex crex xx
Leipzig is Lean & Green World Class
The Porsche plant in Leipzig received a
Lean & Green Management Award in the
category Automotive OEM. The award
was presented at the Green Shift Confer-
ence in Berlin. The jury awarded the pro-
duction site the distinction Lean & Green
World Class. The competition recognises
the most impressive lean management
approaches, taking environmental and
sustainability aspects into account. Two
hundred and fifty plants from more than
10 countries and 20 industries entered.
"The accolade is both recognition and an
incentive for us," says Albrecht Reimold,
Member of the Porsche AG Executive
Board responsible for Production and Lo-
gistics, adding that the plant in Leipzig was
developed with sustainability in mind from
the outset. Gerd Rupp, Chairman of the
Executive Board of Porsche Leipzig GmbH:
"We incorporate sustainable thinking into
all the business areas. Resource efficiency
plays a key role here."
In early August, Porsche Motorsport cele-
brated the 25th anniversary of Manthey-
Racing GmbH with an extra special model -
the 911 GT2 RS Clubsport 25. The racing
car was developed for circuit racing and has
been limited to a production run of 30 units.
Based on the 911 GT2 RS Clubsport, this
model is powered by a 3.8-litre six-cylinder
boxer engine offering power of 515 kW
(700 PS). The power is transferred to the
rear wheels by the dual-clutch transmission.
The distinct design of the 911 GT2 RS
Clubsport 25 features many components
taken from familiar Porsche racing cars.
Limited-edition circuit racing model
SPECIAL LIMITED-EDITION RACING MODEL: THE 911 GT2 RS CLUBSPORT 25
36
CAREER START FOR 150 TRAINEES AND DUAL-STUDIES STUDENTS AT PORSCHE
Executive Board Oliver Blume. "The Chinese
market is dynamic and the customer prefer-
ences are highly specific. We want to meet
these demands in the best way possible." In
Malaysia, Porsche is building a local assembly
facility. The Cayenne model series vehicles
manufactured there will be specially tailored
to the Malaysian market and will only be
available for sale there. Together with Shell,
Porsche is also working here on a cross-bor-
der high-performance charging network.
Strategic sites in China and Malaysia
Porsche has established an ever-expanding
network of research and development sites. In
August, it announced expansion in China and
Malaysia. A research and development site will
be built in Shanghai starting in 2022. The new
Shanghai site will complement Porsche Digital
China founded at the beginning of the year
and also Porsche Engineering China. "The new
site will give us a better understanding of our
local customers' needs," says Chairman of the
In early August, Porsche
Motorsport celebrated
the 25th anniversary of
Manthey-Racing GmbH with
an extra special model - the
911 GT2 RS Clubsport 25.
enelx enelx enelx
>ATTACK MODE>
organisation. Frenkel previously held various
management positions such as Head of Quality
Systems and Methods, Head of Worldwide
Dealership Training and Divisional Head of
Sales Management and Development. "Barbara
Frenkel has ample expertise - both on the
supplier and the customer side. For this reason,
she is an excellent choice," says Oliver Blume.
WALTER RÖHRL AND THE 924 CARRERA GTS RALLY IN THE BAVARIAN FOREST
Investment in the technology start-up Griiip
Porsche acquired a minority interest in
the Israeli start-up Griiip. Griiip is seeking
to digitalise motorsport and allow races
to be experienced in a new dimension. Its
target group is drivers, teams, fans and a
younger audience looking for a more inten-
sive and a personalised viewing experience
via digital media. The Griiip developers have
created a cloud-based data platform that
transmits telemetry data directly from the
racing car. The personalised digital media
platform RAMP (Racing Media Platform)
allows viewers to access the drivers' profiles
and view a driver's stress level, the vehicle's
battery status, predicted lap times and
tyre data.
Development of a real-time warning system
In June, Porsche, HERE Technologies and
Vodafone announced that they were working
on a feasibility study for real-time warning
systems. They are examining how 5G tech-
nology can be used to identify and locate
hazardous traffic situations in real time. Lives
can be saved if cars are able to warn one
another of hazards. Among other things,
HERE Technologies' Live Sense SDK is being
tested. Integrated into devices with
front-facing cameras, this uses computer
vision and artificial intelligence to identify
objects, changes in the behaviour of other
road users and road conditions. Warnings
then appear in the car in real time with a time
lag of less than 10 milliseconds.
Porsche and Rimac agreed
to establish a joint venture
with the involvement of
Bugatti. Oliver Blume and
Mate Rimac announced the
name of the new hypercar
manufacturer - Bugatti-Rimac.
PORSCHE, RIMAC AND BUGATTI ESTABLISH JOINT VENTURE
the contracts and announced the name of the
new hypercar manufacturer - Bugatti-Rimac.
Rimac will hold a 55 per cent stake in the
joint venture, and Porsche will hold 45 per
cent. Porsche additionally holds a 24 per cent
stake in Rimac. Bugatti will be brought into
the joint venture through its current owner
Volkswagen, with its shares being transferred
to Porsche. Under the aegis of the new com-
pany, the brands Bugatti and Rimac will
initially produce two hypercar models - the
Bugatti Chiron and the all-electric Rimac
Nevera. Bugatti Automobiles S.A.S. will
continue to exist under the new joint venture.
All Bugatti models will continue to be manu-
factured at the company's own factory in
Molsheim, Alsace. Jointly developed Bugatti
models are envisaged further down the line.
Porsche, Rimac and Bugatti collaborating
Porsche and Rimac agreed to establish a
joint venture with the involvement of Bugatti.
Oliver Blume and Mate Rimac signed
40 years after competing
in the German Rally
Championship in 1981,
Porsche surprised two-time
world champion Walter Röhrl
on his birthday with a newly
restored 924 Carrera GTS.
MONNET
next important step - our other series sup-
pliers must now likewise produce our compo-
nents using nothing but renewable energies,
thereby further reducing CO₂ emissions. We
are facing up to our responsibility for sustain-
able and transparent supply chains," says
Uwe-Karsten Städter, Member of Porsche
AG's Executive Board responsible for Procure-
ment. The sports car manufacturer's supply
chain is currently responsible for around
20 per cent of its greenhouse gas emissions.
Going forward, the company expects this
proportion to increase to around 40 per cent
by 2030 as electrification increases. This is
something which Porsche is tackling: "By ex-
clusively using electricity from renewable en-
ergy sources, the suppliers are joining us on
our way to achieving balance-sheet CO₂ neu-
trality," says Städter.
vehicle projects starting after 1 July 2021.
Suppliers who are not prepared to switch to
certified green electricity will no longer be
considered in Porsche's contract awarding
process in the long term. "Our battery cell
suppliers have been having to use green elec-
tricity since 2020. There now follows the
From 1 July, Porsche asked its approximately
1,300 series suppliers to use nothing but
renewable energies for the manufacture of
Porsche components. This applies to all pro-
duction material contracts awarded for new
Suppliers switch to green electricity
LUTZ MESCHKE, MATE RIMAC AND OLIVER BLUME
Vive La
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
TRANSITION TO GREEN ELECTRICITY SUCH AS WIND POWER
The latest Cayenne celebrated its premiere in early July. The Cayenne Turbo GT features
74th birthday surprise for Walter Röhrl
Forty years after competing in the German
Rally Championship in 1981, Porsche
surprised two-time world champion Walter
Röhrl with a restored 924 Carrera GTS.
This could be discounted as company
sentimentality. But this would be overlooking
the strong bond that exists among Porsche
employees and the close cooperation between
car manufacturers and racing drivers. "The
biggest problem was keeping it a secret," says
Kuno Werner, head of the Porsche Museum
workshop. Röhrl knows a lot of people there,
but everything went according to plan and
Röhrl was speechless: "I stepped out of the car
40 years ago and haven't sat in it again since.
I immediately feel 40 years younger."
Important events
BARBARA FRENKEL
9
supply industry, working in Purchasing for Valeo
and TRW Automotive. She has held various
management positions at Porsche for 19 years.
As Vice President, Sales Region Europe,
Barbara Frenkel increased the retail volume in
the third-largest sales region by around 10 per
cent in recent years and made a significant
contribution to further expanding the dealer
UWE-KARSTEN STÄDTER
Board member Uwe-Karsten Städter retires
Uwe-Karsten Städter (65) retired from his
position of Member of the Executive Board re-
sponsible for Procurement in August, with
Barbara Frenkel (57) being named as his suc-
cessor. "Uwe-Karsten Städter is one of the
most experienced purchasing specialists in
the automotive industry," says Chairman of
the Executive Board Oliver Blume. "He is
a synonym for strong leadership, fairness and
teamwork. Porsche's procurement was pre-
pared for the challenges of transformation in
an exemplary manner both operationally and
strategically under his leadership." Städter,
who was born in Wolfsburg and trained as an
industrial business administrator, worked for
the Volkswagen Group for 47 years, joining
Volkswagen AG in 1974 After working abroad
as Head of Procurement for Chemical Prod-
ucts at SEAT in Martorell, Spain, he was
appointed the Volkswagen Group's Head of
Procurement Exterior in 2002. From 2007,
he acted as Head of Group Procurement, Elec-
trics/Electronics, before being appointed
Member of the Executive Board of Porsche AG
responsible for Procurement in 2011. During
his tenure, Porsche AG's purchasing volume
increased from two to over nine billion euros.
At the same time, staff numbers within the
Procurement department doubled to around
580 employees. Born in Hof, Bavaria, Barbara
Frenkel began her career in the international
KATTA
nelx erexenelx pe
30
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
Macan GTS
S.60 6004
S.GO 6203
In July, Porsche unveiled three versions of the new Macan, all offering more power than their
predecessors. The Macan GTS is especially sporty, boasting a 2.9-litre V6 biturbo engine with
324 kW (440 PS) of power - an increase of 44 kW (60 PS). It is able to accelerate from 0 to
100 km/h in 4.3 seconds and has a top speed of 272 km/h. The Macan S likewise now features
a V6 biturbo engine with displacement of 2.9 litres and power delivery of 280 kW (380 PS) -
an increase of 20 kW (26 PS). This model accelerates to 100 km/h in 4.6 seconds and can hit
a top speed of 259 km/h. A newly developed, supercharged four-cylinder in-line engine with
195 kW (265 PS) serves as a doorway to the Macan world. It can complete a standard sprint in
6.2 seconds and achieves a top speed of 232 km/h. As usual, all the engines are coupled to
Porsche dual clutch transmission (PDK) with seven speeds and the Porsche Traction Management
(PTM) all-wheel drive system.
Three versions of the new Macan
31
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
S GO 6302
27
GTARS Clubsport
Sustainability and Politics. Porsche cooper-
ates with seven sports clubs in Germany in
the area of youth development. Children and
young people are trained in various sports.
At the same time, team spirit, fairness and
respect are taught and their personalities are
further developed. The Porsche Turbo Award
accordingly rewards their commitment in
the areas of development in sports, the best
academic achievements and exceptional
social engagement.
Important events
MAXIMILIAN BENECKE'S 911 GT3 CUP IN THE GAME IRACING
Ferry Porsche Foundation helps schools
The Ferry Porsche Foundation funded
56 schools in Baden-Württemberg and Saxony,
paying out 840,000 euros to be spent on
hard- and software. "With initiatives such as
the Ferry Porsche Challenge 2021, we are
supporting schools, teachers and schoolchil-
dren as they move into a digital future. There
are still huge needs, in particular regarding
hard and software. We are therefore stepping
up our engagement here, thereby assuming
social responsibility," says Sebastian Rudolph,
Chairman of the Board of the Ferry Porsche
Foundation. Each school was awarded
15,000 euros, which they used to purchase
items including tablets, laptops and smart
boards. The foundation also supports organisa-
tions such as the Hacker School, the NEO
Academy and "Hey, Alter!" with the aim of com-
prehensively digitalising schools and familiar-
ising schoolchildren with future-oriented skills.
The foundation supports non-profit projects
in the areas of social affairs, the environment,
education and science, culture, and sport.
Supp_optimal: meals served to those in need
Porsche AG provided the Supp_optimal pro-
ject of the Bürgerstiftung Stuttgart organisa-
tion with 250,000 euros in funding. To give
some background, more than 12,000 meals
have been served to people in precarious
circumstances in the city since November
2020. The needs were actually much greater
than this, however. The Porsche donation
was used to fund additional temporary serv-
ing stations. The sum donated was raised
thanks to a campaign involving the Porsche
employees, with Porsche Gastronomy inten-
tionally not passing the temporary reduction
in VAT on to the guests as price reductions.
The Executive Board and the Works Council
instead chose to spend this sum on serving
food to those in need.
44
Porsche-assisted research and learning
Porsche AG agreed to a research project
with the TU Dresden university of technology.
The framework agreement was signed in
September. TU Dresden and Porsche have
been cooperating for 15 years. The sports car
manufacturer donated a cockpit for a new
driving simulator to the Chair of Automobile
Engineering. Together with a quick-charging
system, a Porsche Taycan serves as a real
test car which is used for research on the
digital twin project.
Training centre in Leipzig grows
Porsche Leipzig took occupancy of some
new space in time for the start of the new
training year. New training and communal
rooms were developed over space of 1,600
square metres. The new building is connect-
ed to the training and qualification centre
built in 2017. When the first Porsche Cay-
enne rolled off the production line in Leipzig
in 2002, there were five trainees at the site;
there are now more than 120.
FORMER PORSCHE WORKS DRIVER DEREK BELL CELEBRATED HIS 80TH BIRTHDAY
Gult
Desch
Distler's
Former Porsche works driver Derek Bell cele-
brated his 80th birthday on 31 October.
Bell drove for Porsche again and again over
a period of more than 35 years. Of his five
victories in Le Mans, four of them were
achieved in a Porsche. His teammates in-
cluded Jacky Ickx, Hans-Joachim Stuck and
Stefan Bellof. Derek Bell was 30 when he
first competed in Le Mans. And it took him
by surprise. In a test drive, he hit a speed of
396 km/h on the Mulsanne Straight. "I
knew we were fast, but not quite that fast,
because I'd only ever experienced that
speed before during a take-off at Heathrow.
So that was what my initiation with Porsche
at Le Mans looked like!" That was in 1971.
Ten years later, he achieved quite a coup
with the Porsche 936/81 and teammate
Jacky Ickx in Le Mans, when they won
with a 14-lap lead and were almost an hour
faster than the runner-up. Bell hails from
Middle-sex in England. He began his racing
career entering club races in the UK. He was
soon promoted on the basis of his talent,
moving from the Formula 3 Championship
and the European Formula Two Champion-
ship up to Formula 1.
Derek Bell and the 14-lap lead
uvex
THE NEW TRAINEES GAIN INSIGHTS
11
Wessels
Benecke the new esports champion
In October, Maximilian Benecke was crowned
champion in the Porsche Esports Carrera
Cup Deutschland. In the final held on the
iRacing simulation platform, he won both
races. The races were held on the digital
version of the Circuit de Barcelona-Catalunya
in Spain. The top three drivers in the final
rankings shared total prize money of
25,000 euros - 12,000 euros went to
Benecke for his overall victory, second-placed
Diogo Pinto of Portugal received 8,000 euros
and Christopher Dambietz of Germany in
third place took home 5,000 euros. A total of
21 sim racers lined up on the starting grid in
their Porsche 911 GT3 Cup cars for the sea-
son final. Benecke won nine of the 16 races.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
DUNLO
BOSS
THOMAS LAUDENBACH
FRITZ ENZINGER
Racing driver Hans-Joachim Stuck waited
35 years for this reunion and was immense-
ly curious when the silk car cover was re-
moved in Weissach in October, revealing a
962 C, Stuck's old love. The racing car from
the Porsche Heritage and Museum depart-
ment was restored to its original 1987 con-
dition over a period of 18 months. Stuck
was moved: "It feels like coming home." It
was with the 962 C that the racing driver
won Germany's prestigious and fiercely
contested ADAC Würth Supercup. During
the inaugural series for Group C sports car
prototypes, he tested the then new Porsche
dual-clutch transmission (PDK) at racing
speed. The 962 C competed in another sea-
son before subsequently becoming a test
car for aerodynamics in Weissach. It most
recently served as a reference vehicle
for the Porsche collection. To make the
car roadworthy again, the underbody was
completely rebuilt and the radiator was
rearranged. Many individual parts had to
be reconstructed.
Stuck encounters his old love
Porsche Ventures puts its money on iMaker
Porsche Ventures made a strategic invest-
ment outside of the automotive industry,
investing in the Chinese company iMaker.
iMaker is China's leading provider of virtual
influencers and digital ecosystems. The in-
vestment shows that Porsche is carefully
following the new consumer culture and the
latest trends among young Chinese con-
sumers. Porsche's declared strategic objective
is to continuously invest in new application
scenarios for digital content. The sports car
manufacturer is cooperating with iMaker on
digital application scenarios and ecosystems.
The aim is to make vehicles an important part
of people's digital lives and entertainment
and to offer customers a convenient, seam-
less and persuasive experience.
KUKA
சட்டகம்
48
Weissach - from a test track to a think tank
The Weissach Development Centre was
opened on 1 October 1971. This resulted in
Porsche creating its own test track 50 years
ago, located in the countryside but also prac-
tically on Porsche's doorstep, 25 kilometres
to the east of Zuffenhausen. It was former
Weissach-based racing driver Herbert Linge
who suggested that Ferry Porsche look for
a building location in Weissach. The first con-
struction phase then began in October 1961.
A circular track was built, together with other
test tracks where prototypes could really be
put through their paces. Weissach is now
where the Porsche think tank is based, com-
prising 6,700 employees who work on innova-
tive and smart solutions. "Since 2010, we
have invested hundreds of millions in the
construction of new buildings and facilities.
A sum in the hundred-million range is also
available for additional projects," says Michael
Steiner, Member of the Executive Board re-
sponsible for Research and Development. By
2025, the site will have been expanded by
12 hectares. Steiner: "We are setting the
global benchmark in automobile development
with the Weissach Development Centre."
AERIAL VIEW OF A SECTION OF THE PLANT IN WEISSACH
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Egon Zimmermann's legendary ski jump over
a Porsche in 1960 was the subject of a worthy
restaging when two-time Olympic cham-
pion Aksel Lund Svindal jumped over a Taycan
parked between walls of snow as tall as houses.
The photography of The Porsche Jump
stands for athleticism, courage and joie de
vivre - and stages the most innovative sports
car of its time. "The jump is a powerful
symbol of the determination with which we
at Porsche pursue our dreams," says Lutz
Meschke, Deputy Chairman and Member of
the Executive Board responsible for Finance
and IT at Porsche AG. "The photo shows how
Porsche interprets future viability - daring to
try new things and boldly forging ahead, al-
ways trusting in itself to go that little bit fur-
ther than the others in order to discover the
best solution." The jump motif featured on
the cover of the September issue of Porsche's
Christophorus magazine. The cover was cre-
ated by American designer Jeffrey Docherty.
The story of the jump was also documented
in the September edition of 9:11 Magazine.
Jumps for posterity
45
Weissach is Porsche's
think tank. There are
6,700 employees working
on innovative and smart
solutions there.
KUKA
"Remember your dreams" by French artist and architect Cyril Lancelin is a large installation
(L x W x H: 10 × 12.4 x 7.6 metres) comprising inflated elements. With The Art of Dreams,
Porsche is commissioning works of art which address the topic of dreams. The company's aim
is to inspire, communicate optimism and contribute to vibrant communities.
The Art of Dreams
PORSCH
216201
The Porsche Football Cup was won by RB
Leipzig's U15 team. The Leipzig team beat
Borussia Mönchengladbach's junior players
2:0 at the ADM-Sportpark in Stuttgart.
In the third-place play-off, the Stuttgarter
Kickers' U15 team won 5:2 on penalties
against the junior players of FC Erzgebirge
Aue. The ambassador for Porsche's youth
development programme Turbo for Talent,
Sami Khedira, commented as follows:
"Porsche and its partner clubs share the same
values-team spirit, fairness, passion, respect
and tolerance. I look forward to the second
tournament in the new year." The company
donated 500 euros for every goal scored as
part of the Goals for Charity campaign. With
36 goals being scored, the donation totalled
18,000 euros. The money went to two Stutt-
gart-based sports and activity projects for
children and young people. Porsche upped the
donation amount to 25,000 euros.
Junior Leipzig players win Porsche
Football Cup
racing cars."
New eFuels production plant in Chile
Porsche and Siemens Energy reached the
next milestone - in early September, work
began on an industrial eFuels production
facility in Punta Arenas, Chile. Other inter-
national companies are also involved in the
project. Initially, a pilot plant will be built,
where around 130,000 litres of synthetic
fuel are set to be produced annually starting
in 2022. This has the potential to be almost
entirely CO2-neutral. The volumes are ex-
pected to grow in the future as the capaci-
ties are expanded. Porsche initiated the pro-
ject and, going forward, intends to use
eFuels in its own vehicles with an internal
combustion engine. Michael Steiner, Mem-
ber of the Executive Board responsible for
Research and Development: "Our tests with
renewable fuels are going very successfully.
eFuels have the potential to be almost en-
tirely CO2-neutral in the future. Among other
things, we will be using the first fuel from
Chile in our Porsche Mobil 1 Supercup
Porsche opened a new
Porsche Experience Centre
in Franciacorta, Italy, in
September - the eighth
of its kind in the world. It
combines many of the things
that make Porsche special -
a motorsport atmosphere,
unique design with iconic
architecture and a brand
experience venue for our
global fan base.
AERIAL VIEW OF THE NEW PORSCHE EXPERIENCE CENTRE IN FRANCIACORTA, ITALY
Eighth Experience Centre worldwide opened
Porsche opened a new Porsche Experience
Centre (PEC) in Franciacorta, Italy, in Sep-
tember - the eighth of its kind in the world.
Covering approximately 60 hectares, the
facility includes the Autodromo di Francia-
corta handling circuit. It boasts an attractive
location close to the airports in Milan, Ber-
gamo and Verona. "The PEC Franciacorta com-
bines many of the things that make Porsche
special - a motorsport atmosphere, unique
design with iconic architecture and a brand
experience venue for our global fan base,"
says Chairman of the Executive Board Oliver
Blume. "We found the ideal location in
Franciacorta. People in Italy are passionately
enthusiastic about our brand. They can now
indulge their passion here." The handling
circuit is the centrepiece. The corners and
chicanes the length of its 2.5-kilometre main
circuit are perfect for fine-tuning driving
skills. An off-road course with ramps, corners
and a gravel track has been designed with
Cayenne and Macan drivers in mind.
Santander
38
LUTZ MESCHKE AND SAMI KHEDIRA PRESENT THE TROPHY
Porsche Fußball Cup
2021
PORSCHE PORSCHE
IN THE FINAL, THE LADS FROM RB LEIPZIG BEAT BORUSSIA MÖNCHENGLADBACH
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
2121 PORS
17 Shell
Important events
Mission R - a spectacular concept study
Porsche afforded a spectacular insight into
the automotive future in early September at
IAA Mobility 2021 in Munich when it unveiled
its Mission R concept study, which combines
cutting-edge technologies with sustainable
materials. The sports car illustrates how
natural fibre-reinforced plastics can prove
their worth in motorsport. As well as progres-
sive design, the decidedly low-slung, all-
electric competition car boasts the charac-
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
40
40
Mobil
Valentin Schäffer celebrated his 90th birth-
day on 8 October. He spent 30 years develop-
ing engines for Porsche. The engineer was
involved in developing engines such as the
Carrera four-cylinder type 547 with vertical
shaft drive and the eight-cylinder vertical
shaft type 753 and 771 engines, which
brought Porsche victories in Formula 1, the
European Hill Climb Championship and the
World Sportscar Championship. Schäffer
joined Porsche Motorsport in 1955. From
1956 to 1980, he managed race appearances,
travelling all over the world to do so. In 1971,
he completely reconceptualised the turbo
engine. The 917/30 Spyder was powered by
the 912/52 turbo engine. On 9 August 1975,
Mark Donohue set a world record on the
Talladega Superspeedway, with an average
speed of 355.78 km/h. Schäffer became
known as "Turbo Valentin".
Turbo forward thinker
VALENTIN SCHÄFFER
39
PORSCH
THE DRIVING AND SOUND EXPERTS WHO PERFORMED LIVE IN WEISSACH
PENLOP
Porsche Turbo Award for junior sportspeople
Eighteen junior players from Porsche's youth
development programme Turbo for Talent
received a Turbo Award for their exceptional
commitment. "At Porsche, we know that
team spirit, passion, fairness and respect
serve as a turbo for success. With our youth
development programme, we aim to pass
these values on to talented and dedicated
young sportspeople," says Sebastian
Rudolph, Vice President Communications,
www.soundnacht.porsche.de. The sound
night was also broadcast live on Porsche's
YouTube and LinkedIn channels. Sound clips
are available on YouTube and on the home
page www.porsche.de/Museum.
The Porsche Sound Orchestra cranks it up
Current and former racing drivers broadcast
engine sounds in a live stream in Septem-
ber. Highlights from Porsche's motorsport
history resonated for two hours. The event
featured contrasting creations such as the
engine of the Porsche 718 Formula 2 from
1960 and the 99X Electric from 2019.
Hans-Joachim Stuck got behind the wheel
of a 962 C and demonstrated what it
sounds like at full throttle. Both the Porsche
Museum in Zuffenhausen and the Weissach
Development Centre served as venues
for this extra special sound spectacle. The
interactive live event was free of charge
and could be accessed by anyone without
the need for prior registration. The event
was broadcast around the world in German,
English and French via the website
performance, design and sustainability." The
vehicle accelerates from a standing start to
100 km/h in 2.5 seconds and can hit a top
speed of over 300 km/h. On the racetrack,
the electric racer puts in the same lap time
performance as the current Porsche 911 GT3
Cup. Thanks to advanced 900-volt technol-
ogy and Porsche Turbo Charging, all the bat-
tery needs is a good 15-minute break from
racing to charge from 5 to 80 per cent state
of charge (SoC).
teristic Porsche lines. The Mission R's two
newly developed electric motors deliver power
of up to 800 kW (1,088 PS). Its battery
capacity of around 80 kWh and an innovative
energy recuperation system allow for sprint
racing without any loss of power. "Porsche is
the brand for people who fulfil their dreams,"
says Chairman of the Executive Board Oliver.
"The concept study is our vision of all-electric
customer motorsport. The Mission R embodies
everything that makes Porsche strong -
Eighteen junior players
from Porsche's youth
development programme
Turbo for Talent received
a Turbo Award for their
exceptional commitment.
DUNLOP
11
DANTOS
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
62
52
Support for Stuttgart Ballet dance project
In November, a sponsorship project was
launched with Stuttgart Ballet's JUNG+ pro-
gramme. The aim of "Keep moving" is to get
schoolchildren excited about dance. Dance
therapists Marieke Lieber and Adrian Turner
will assist year five and six students at the
schools Konrad-Widerholt-Schule in Kirchheim
unter Teck and Jerg-Ratgeb-Realschule in
Herrenberg until May 2022. The dance class
will then perform at the John Cranko School in
Stuttgart at the end of this period to demon-
strate their abilities. It is the schoolchildren
themselves who dictate the content, drawing
on their creativity. The project is being made
possible thanks to the sponsorship of Porsche
Deutschland. The sports car manufacturer
contributed around 10 million euros to the
rebuilding of the John Cranko School. Porsche
Deutschland is supporting "Keep moving"
with a donation of 50,000 euros. Porsche has
been supporting cultural projects as part of
its sustainability strategy for years.
a donation in the amount of
170,000 euros on the
occasion of the International
Day of Persons with
Disabilities on 3 December.
The aim of the donation
is to improve the participation
of people with disabilities
or mental illness in their
institutions.
The Federal Association
of Protestant Aid for the
Disabled received
53
in purple to highlight the importance
of inclusion in society.
a 170,000-euro donation to Germany's
Federal Association of Protestant Aid
for the Disabled (BeB). The money
3 December, Porsche demonstrated its
commitment to inclusion by making
Donation to association for the disabled
On the occasion of the International
Day of Persons with Disabilities on
THE TOMBOLA PROCEEDS RAISED AT THE LEIPZIG OPERA BALL WERE DONATED TO THE FOUNDATION LEIPZIG HILFT KINDERN
LEGEN
DIST
URB
LIS
is going towards a new project called
Mehr Mit-Bestimmen that offers inclu-
sive teams qualifications as coaches
and advisors. The aim is to improve the
participation of people with disabilities
or mental illness in their institutions.
Porsche is also involved in the global
initiative Purple Light Up, which raises
awareness of the economic self-
determination of people with disabilities.
The Porsche Museum in Zuffenhausen,
the Porsche Tower in Bietigheim and the
customer centre in Leipzig were lit up
66
718 CAYMAN GT4 RS
Five world premieres at the LA Auto Show
Porsche unveiled five world premieres at the
LA Auto Show in Los Angeles in November -
the new 718 Cayman GT4 RS as the high-
light of its trade show appearance, the
718 Cayman GT4 RS Clubsport, the Taycan
GTS and Taycan GTS Sport Turismo, and the
Panamera Platinum Edition. "California has
been a second home for Porsche for many
decades," says Oliver Blume, Chairman of the
Executive Board of Porsche AG. "These days,
it's hard to picture the streets of California
without our Taycan electric sports car. Our
young, innovative product range has been
well received in the USA."
GTARS Clubsport
Mobil 1
REC
Porsche revealed the 718 Cayman GT4 RS Clubsport at the LA Auto Show in Los Angeles in
November as an even more powerful customer sport racing car for the GT4 category. The
racetrack car from Weissach is based on the 718 Cayman GT4 RS production model, which
is likewise new. The most striking change is the 4.0-litre six-cylinder boxer engine, which is
identical to the high-revving engine in the 911 GT3 Cup and delivers 368 kW (500 PS) in
the most powerful Cayman racing car - 55 kW (75 PS) more than its predecessor. Depending
on the track and regulations, the new 718 Cayman GT4 RS Clubsport can achieve lap times
that are over two per cent quicker than the previous model. "We incorporated our experience
and customer wishes," says Michael Dreiser, Director of Sales at Porsche Motorsport.
New customer sport racing car for the GT4 category
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
54
S.RS 982
54
SHPA 422E
Exclusive Panamera version showcased
Porsche launched an especially elegant and ex-
clusive version of the Panamera in November.
The Platinum Edition is characterised by subtle
design features in satin-gloss Platinum paint-
work. The refined special edition of the Panamera,
Panamera 4 and Panamera 4 E-Hybrid is offered
at a particularly attractive price. Among other
things, the Platinum Edition features adaptive
air suspension with Porsche Active Suspension
Management (PASM) and exterior mirrors
with automatic dimming as standard. The price
The Bugatti-Rimac joint venture began its
operations on 1 November. Its shareholders
are the Rimac Group (55 per cent) and
Porsche AG (45 per cent). Chairman of the
Porsche Executive Board Oliver Blume and
Deputy Chairman and Member of the
Executive Board responsible for Finance Lutz
Meschke are on the Supervisory Board.
Bugatti and Rimac Automobili will operate as
independent brands under the aegis of the
joint venture. They manufacture in Molsheim
and Zagreb respectively and will each main-
tain their own sales channels. Bugatti-Rimac
is based in Sveta Nedelja, Croatia.
Bugatti-Rimac joint venture started
Majority stake in e-bike manufacturer Greyp
Porsche acquired a majority stake in the
e-bike manufacturer Greyp Bikes at short
notice in November. The sports car manufac-
turer exercised its right of first refusal in
order to head off a third-party takeover offer.
Alongside Porsche as the majority share-
holder, only Mate Rimac and other Greyp
founders retain stakes in the company.
Porsche is applying the expertise it has
gained from battery-powered drives to the
attractive and fast-growing e-bike market
too. Electric bikes have a fixed place in the
company's e-mobility strategy and promise
additional potential.
Exclusive Manufaktur fulfils special requests
Paolo Barilla became the first customer to
design a highly customised Porsche 911 GT3
(992) together with the Porsche Exclusive
Manufaktur. Barilla was the overall winner of
Le Mans in 1985 in a private Porsche 956.
He made use of Porsche's new Sonderwunsch
programme on the occasion of his 60th birth-
day. In addition to the characteristic racing
look in Summer Yellow, white and black, this
extra special vehicle sports start number 7,
just like his winning 956. The rear wing and
gearshift lever were reinterpreted and in part
developed independently. "Many times in this
project, we would have had good reason to
say 'It's not going to work' or 'It's too compli-
cated'," says Philipp Setter, Head of Sonder-
wunsch Customer Consultation at the
Porsche Exclusive Manufaktur. "We pushed
the boundaries and were able to achieve a lot.
With his clear vision, his grasp of tight sched-
ules and his decisiveness, Paolo Barilla was
the right customer and project manager for
such an ambitious project."
BOSCY
includes LED matrix main headlights with
Porsche Dynamic Light System Plus (PDLS
Plus), the panoramic roof system and ParkAssist
with reversing camera. Hybrid models are
fitted with an on-board AC charger with 7.2 kW
charging power. In addition, 20-inch Panamera
Style wheels in Platinum are available as an
option. In Europe, the premium equipment is
also available in the corresponding Sport Turismo
models, while in China, the range will be ex-
panded to include the Executive models with
an extended wheelbase.
PURPLE LIGHT UP INITIATIVE SEES PORSCHE BUILDINGS BEING LIT UP IN PURPLE AS A SYMBOL OF INCLUSION
5G research network at the Leipzig plant
In November, Porsche put a 5G research net-
work into operation at the Leipzig plant to-
gether with the Swedish mobile network sup-
plier Ericsson. This is the first 5G research
network in a Porsche production environ-
ment. The network transmits signals securely
and in real time. Among other things, process
devices on a robot are now controlled via 5G
rather than via wires. The independent 5G re-
search network utilises a private frequency
spectrum, but is based on the same technol-
ogy used in commercial networks.
IONITY expediting quick-charging network
In November, the joint venture IONITY exped-
ited the expansion of high-performance
charging stations in Europe - the number
of locations is set to rise from currently just
under 400 to more than 1,000 by 2025.
In the future, there are to be approximately
7,000 charging points - more than four times
as many as there are currently (approximately
1,500). "We are seeing a clear increase in
electromobility and the associated high-
performance charging infrastructure," says
Oliver Blume, Chairman of the Executive
Board of Porsche AG. "By investing in the
IONITY joint venture, we are sending an im-
portant signal to customers that we are
elevating the comfort and convenience of
travelling in an electric vehicle even further."
The IONITY network is already Europe's big-
gest brand-independent charging network,
both in terms of spread and the number of
charging stations. With the Combined
Charging System (CCS) charging standard,
the Porsche Taycan can charge at a charging
station with up to 270 kW; Taycan drivers
benefit from a significantly discounted price.
TO HEAR THE GOOD NEWS
ANTHONY IS HAPPY
The sum of 200,000 euros was raised
through the first Porsche Virtual Run. The
money was donated to the international
Make-A-Wish Foundation, which realises
dreams for seriously ill children, young people
and adolescents. The coronavirus restric-
tions meant the six-hour run traditionally
held in Zuffenhausen could not take place.
The Porsche Virtual Run expanded the field
of starters. Runners were invited to rack
up kilometres on actual racing circuits such
as Le Mans (13.626 kilometres), the Nürburg-
ring's Nordschleife (20.83 kilometres) and
even the Targa Florio (72 kilometres). In total,
2,300 Porsche employees around the world
took part between mid-September and early
October. A distance of 67,559 kilometres
was run for a good cause. Porsche AG
originally pledged to donate 50 cents per
kilometre. But as so many employees took
part, and with the needs of sick children
and young people being so great, the com-
pany upped this to three euros per kilometre.
Chairman of the Executive Board Oliver
Blume: "Whether in Taiwan, Switzerland or
Australia, our colleagues in more than 35
countries have drawn motivation from the
numerous wishes. Many have gone the
famous extra mile. True sportsmanship in
the spirit of social responsibility."
Porsche employees run and raise
200,000 euros
Virtual Run. The money was
donated to the Make-A-Wish
Foundation.
The sum of 200,000 euros was
raised through the first Porsche
IMPRESSIONS OF THE VIRTUAL RUN
EST
49
Sustainable rubber extraction
Porsche and the tyre manufacturer Michelin
decided to support the sustainable extraction
of natural rubber. They are jointly involved in
the project CASCADE (Committed Actions for
Smallholders Capacity Development), an initia-
tive which aims to achieve transparency re-
garding rubber extraction and improved labour
conditions for more than 1,000 smallholders in
Sumatra, Indonesia. CASCADE offers training,
improves occupational safety and teaches
smallholders about more environmentally
sound and more efficient farming. CASCADE is
one of the first support projects in the world
to tackle the lowest level of the natural rubber
supply chain. Porsche and Michelin have
budgeted around a million euros for the project
which is initially set to run until 2024. "For
Porsche, responsibility begins a long way from
the factory gates. We take a holistic approach
to sustainability. Our supply chain and the
extraction of raw materials are important fac-
tors here," says Barbara Frenkel, Member of
the Executive Board responsible for Procure-
ment. "We take responsibility for our impact on
rubber extraction regions. We want to improve
people's lives with concrete local projects."
Legend Fritz Enzinger vacates the driving seat
Fritz Enzinger stepped down as Vice President
of Porsche Motorsport after 10 years. "We
can't thank him enough for his hugely suc-
cessful work. Fritz Enzinger shaped an era
with incredible triumphs and many title
wins," says Michael Steiner, Member of the
Executive Board responsible for Research and
Development. Enzinger, who is Austrian,
joined Porsche in 2011. He initially built up
the successful LMP1 programme with the
919 Hybrid. Between 2014 and 2017, he
scored three overall victories in the 24 Hours
of Le Mans and also won six world champion-
ship titles. The Enzinger era is marked by
these successes. Porsche also entered
the ABB FIA Formula E World Championship
under Enzinger's leadership. ""I look back
with pride and gratitude on what we have
achieved together," says Enzinger. He was
succeeded by Thomas Laudenbach, who took
over at the helm of Porsche Motorsport on
1 October. A chartered engineer, he has been
with Porsche since 1998. Among other
things, he has overseen motorsport drive de-
velopment and has been involved in various
motorsport and sports car projects.
BOSS
Вдигов
DUNLOP
HANS-JOACHIM STUCK AND HIS RACING CAR, THE 962 C
PORSCHE
Important events
Wir haben tolle gaaanz tolle
PORSCHE
DU DARFST DIR
ETWAS WÜNSCHEN!
Flood aid of 500,000 euros for the Red Cross
Porsche AG supported the German Red
Cross's flood relief efforts with a donation in
the amount of 500,000 euros. The money is
earmarked for work in the regions affected by
the floods in Belgium, the Netherlands and
Austria. The partner organisations the Belgian
Red Cross, the Rode Kruis and the Austrian
Red Cross have been active here since the
floods of June 2021. The donation will be
used to promote reconstruction. The focus
in Belgium is primarily on schools and univer-
sities, with gyms, classrooms and canteens
needing to be re-equipped and teaching
materials needing to be bought. The Rode
Kruis in the Netherlands is looking to the
future and is expanding its emergency fund.
And among other things, the Austrian Red
Cross intends to buy mobile flood barricades.
Additional heatable tents are also needed,
especially for emergency aid.
Nachrichten für dich...
tombola proceeds are traditionally donated to
the Leipzig hilft Kindern foundation. Specific-
ally, they were used to fund the association
Bemmchen-Leipzig e.V. and the Wunderfinder
project, which arranges the educational
sponsorship of nursery schoolchildren.
Porsche will present the Leipzig Opera Ball
again in the new year.
Porsche presented the Leipzig Opera Ball for
the eighth time and also donated the main
tombola prize. It was no coincidence that the
718 Boxster sported Racing Yellow paint-
work and featured a blue top and black
interior-the colour scheme reflects the
Leipzig city colours and is designed to sym-
bolise Porsche's affinity with the city. "The
718 Boxster serves as a great incentive to
encourage people to buy tombola tickets on
the evening of the Opera Ball. Every ticket
sold contributes to social projects being real-
ised," explains Gerd Rupp, Chairman of the
Executive Board of Porsche Leipzig GmbH.
"In particular in view of the current corona-
virus situation, we have a duty to pull together
more and support people in need." The
Social engagement for children
50
SURF DE
WIR KÖNNEN ES KAUM ERWARTEN, DIR
DEINEN WUNSCH ZU 
ERFÜLLEN
Make-A-Wish
was dein allergrößter Wunsch ist!
Aber bis es soweit ist darfst du deiner
Fantasie freien Lauf lassen und dir überlegen
WUNSCHE
BRINGEN
VIEL
machen dich
STARKER
Winche
Ein Wunsch ist etwas ganz Besonderes
- Nur für 
dich!
UNSERE WUNSCHERFÜLLER FREUEN SICH
SCHON DARAUF DICH 
KENNENZULERNEN
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Miccin R
Mobil
D7
74
PORSCHE MISSION R ON THE RACETRACK
IN WILLOW SPRINGS, USA
01
ABB
In relation to the topic of "Sustainability" too,
Porsche achieved some strategic goals in
2021 the German sites in Zuffenhausen,
Weissach and Leipzig are now balance-sheet
CO2-neutral. Beyond its own factory gates,
the supply chain was involved more heavily,
with the company requiring its approximately
1,300 series suppliers to use renewable
energies for all contracts newly awarded
since July 2021. "Strategy 2030 will guide
us to a successful future. We want to achieve
balance-sheet CO2 neutrality in all areas by
2030. This sees us assuming responsibility
for the environment and for society," says
Porsche's Chairman of the Executive Board
Oliver Blume.
The "Products" cross-cutting strategy focuses
on the customer requirements of the future,
aligning the product strategy with digital,
connected and innovative products and ser-
vices. In addition to the core business,
individual mobility solutions and financial
services should contribute to growth and
the company's profitability.
in the last financial year. The Taycan Cross
Turismo rolled out in 2021 is the first
Porsche continuously reviews the progress
made with Strategy 2030. The company
already achieved some important milestones
The focus of the "Transformation" cross-
cutting strategy is on people. They are to be
provided with new ways and methods of
working. Leadership has an important part to
play when it comes to getting the Porsche
employees on board - they should be notified
about changes promptly and be involved in
processes to allow them to jointly expedite
transformation. Long-term thinking and busi-
ness-minded actions are supported here.
The "Organisation" cross-cutting strategy
addresses the company's organisational
alignment to optimally prepare it for future
requirements. Processes should be made
as effective and as efficient as possible.
Porsche is also defining strategic value cre-
ation fields which will be developed by the
company itself or by external suppliers in
the future. This will also involve decisions
regarding strategic partnerships.
The "Digitalisation" cross-cutting strategy
focuses on building up the company's own
digital skills and gets partners involved.
Shortening the time to market for new prod-
ucts and business models, an open-platform
strategy and the use of artificial intelligence
and data-driven optimisations should make
a major contribution to the success of
the business.
The "Sustainability" cross-cutting strategy
pursues a holistic approach covering every-
thing from environmental and social aspects
to responsible corporate governance.
Decarbonisation and maintaining a circular
economy along the entire value chain are key.
The cross-cutting "Customer" strategy fo-
cuses on the relationship with our customers.
Premium customer experiences should
further boost customer loyalty and attract
new audiences to the Porsche brand. Omni-
channel sales and the development of a
strong Porsche community are designed to
connect customers with the brand online
and in the physical world.
TOGETHER4INTEGRITY
PORSCHE
Six cross-cutting strategies
The customer, products, sustainability, digit-
alisation, organisation and transformation -
these are the six cross-cutting elements
that make up Porsche's Strategy 2030. They
form the centre of the Porsche strategy house
and feed into the corporate goals. The profit-
ability programme provides the foundations.
Porsche uses this to increase efficiencies and
to tap into additional sources of income. The
second foundation stone is the Volkswagen
Group's Together4Integrity programme,
which aims to bolster the Group's integrity
and compliance across all brands and com-
panies. Cross-functional teams realise
the six topics, each of which is overseen by
two Executive Board members.
production model designed to be balance-
sheet CO2-neutral over its entire service life.
The sports car manufacturer has defined
clear goals for its products - by 2030, more
than 80 per cent of the vehicles delivered are
to be electric, either as hybrid or all-electric
vehicles. For the company, developing and
making use of eFuels is a sensible addition to
electromobility. Synthetic fuel has the poten-
tial to be almost entirely CO2-neutral. It lends
itself well to vehicles with internal combus-
tion engines. The construction initiated
by Porsche of an eFuels pilot plant in Chile
is going according to plan. The company's
commitment to green petrol produced from
renewable energy falls within the Beyond
Mobility topic of Strategy 2030. This is about
thinking outside of the box regarding vehicle
development and production.
SUSTAINABILITY MANAGEMENT
65
Sustainability organisation
Asia-Pacific, Africa
Transformation
driving change
131,098
and Middle East
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
Important events
AMERICA
United States: Taycan as the shooting star
Porsche delivered 80,449 vehicles across the
North American continent in the year under
review. With 70,025 deliveries, the US was
once again Porsche's second largest single
market worldwide. Year-on-year, 22 per cent
more new vehicles were delivered to US
customers. Already comfortably ranked top
in 2020, the Macan considerably boosted its
popularity again, achieving an increase of
33 per cent in deliveries to 24,716 units.
The Taycan was the shooting star in the US
too. Deliveries increased more than twofold
year-on-year to 9,419 units. Demand was
especially high in California, with 29 per cent
of the Taycan deliveries in the US going to
this state in the year under review.
Porsche delivered 80,449
vehicles across the North
American continent in the
year under review. With
70,025 deliveries, the US was
once again Porsche's second
largest single market world-
wide. Year-on-year, 22 per
cent more new vehicles were
delivered to US customers.
Canada: two pillars of success
Sustainability strategy
Canada followed the very positive trend on
the North American continent with an in-
crease of 23 per cent. In total, 9,141 units
were delivered in the year under review,
primarily thanks to the Porsche 911 and
Macan models, which both increased their
prior-year delivery figures in Canada by
more than 45 per cent.
THE PORSCHE CAYENNE REMAINS THE MOST POPULAR MODEL IN FRANCE
THE ICONIC 911 SPORTS CAR IS IN GREAT DEMAND IN THE US TOO
66
EUROPE
A total of 86,160 vehicles were delivered to
customers in Europe - seven per cent more
than in 2020. Together, plug-in hybrids and
the all-electric Taycan accounted for 39 per
cent of deliveries in this region. "This result
is promising and shows the strategy to further
electrify our fleet is working and is in line
with demand and the preferences of our
customers," says Detlev von Platen. The top
three European markets for the Taycan were
Germany (5,106 units), the UK (4,062 units)
and Norway (1,714 units).
Germany: 911 remains the top seller
Demand for Porsche vehicles also increased
in its home market in 2021 - Porsche de-
livered 28,565 vehicles to customers,
equating to an increase of nine per cent.
As in the previous year, the Porsche 911
was the undisputed top seller - 7,792 of
this iconic sports car were handed over to
customers. The models ranked in second,
third and fourth place were noticeably
balanced. Accounting for around 20, 19
and 18 per cent of Porsche deliveries re-
spectively, the Macan, Cayenne and Taycan
models enjoyed similar levels of popularity.
In addition to the Taycan with an increase of
55 per cent, the Panamera enjoyed strong
growth in Germany (12 per cent). Just under
three quarters of all the Panamera units
handed over to customers were equipped
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
STA 5132E
Stakeholder survey and materiality
Stakeholder communication and dialogue
Brazil: expedition with the Taycan
Plug & Charge at the Copacabana: follow-
ing the market launch in November 2020,
385 Taycan units were delivered to custom-
ers in Brazil in 2021. The national roll-out
of the Taycan Cross Turismo occurred in
December 2021 with a special campaign -
popular Brazilian sportspeople traversed
14 states in 26 days and clocked up more
than 10,000 all-electric kilometres in
the process. The two models with the
highest delivery figures in Brazil were the
Porsche 911 at 852 units and the Macan
at 821 units.
Effective execution and
balanced exploration
The company promotes diversity of views
and makes a commitment to society. Porsche
also promotes sustainability in the supply
chain as well as transparent and responsible
corporate governance.
Digitally enabled
company, ecosystems
partnering
FERRY PORSCHE (LEFT) WITH HIS SON FERDINAND ALEXANDER
THE CAR I DREAMED OF.
SO I DECIDED TO BUILD
IT MYSELF."
COULD NOT FIND QUITE
I LOOKED AROUND AND
„IN THE BEGINNING,
34
K72
SOCIETY
→ "Best in class" ESG rating
→ Balance-sheet CO2-neutral value chain
Ferry Porsche
DRIVE CHANGE FOR A SUSTAINABLE WORLD
LEAD IN CUSTOMER DESIRABILITY
Brand perception #1
CUSTOMERS
Goals 2030
Porsche is also rising to the financial chal-
lenges of transformation. The company is
investing heavily, among other things in
sustainability, innovation, digitalisation and
training. Despite this necessary financial
effort, Porsche is sticking to its strategic
target of a return on sales of at least 15 per
cent and a return on investment of at least
21 per cent.
Sustainability is now an even bigger priority.
As a company, Porsche wishes to be bal-
ance-sheet CO2-neutral by 2030 - across
the entire value chain. The sports car manu-
facturer voluntarily has its sustainability
achievements in the areas of the environment,
society and responsible corporate governance
rated annually by the sustainability rating
agency ISS ESG. Porsche has set itself the
goal of being classified as one of the leading
companies in the automotive industry in
this rating.
Porsche has defined its goals based on the
four stakeholder dimensions of customers,
society, employees and investors. In keeping
with this vision, the company aims to be
the most recognised brand in the world and
one that particularly excites its customers.
Goals 2030
The company's vision carries Ferry Porsche's
mindset into the future: "The brand for
those who follow their dreams." This explicitly
includes the employees. Chairman of the
Executive Board Oliver Blume says: "Porsche
epitomises freedom and independence -
and the inner drive to achieve goals. To this
day, nothing has changed in that regard.
We want to help our customers realise their
lifelong dreams."
Vision 2030
+11% 7
→ Customer excitement #1
PROFITABILITY PROGRAM
72
PORSCHE
Sustainability in
the whole value
network
and services
customer experience
Exciting products
Inspiring brand and
TRANSFORMATION
ORGANISATION
DIGITALISATION
SUSTAINABILITY
PRODUCTS
S.TA 5123E
CUSTOMER
CORPORATE STRATEGY
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
INVESTORS
→ Return on investment ≥ 21%
→ Return on sales ≥ 15%
PRESERVE HIGH PROFITABILITY
→ Attractive employer: top 3
→ Employee fascination > 85%
BE THE TOP EMPLOYER OF CHOICE
EMPLOYEES
Mission Vision | Targets
86,160
Helping refugee women gain employment
Strong women, strong families - together
with the social start-up socialbee, the Ferry
Porsche Foundation is supporting refugee
women as they enter the German labour market.
In autumn, a donation of 300,000 euros was
used to create a three-year qualification and
development programme which boosts the
female participants' independence and steers
them into an independent career. "Education
and qualifications are key to shaping people's
lives. This is especially so for people who have
had to flee from their home country. Helping
refugee women to help themselves has a key
part to play here," says Sebastian Rudolph,
Chairman of the Board of the Ferry Porsche
Foundation. "If refugee women are well inte-
grated in Germany and in the labour market,
this has a positive impact on their entire fam-
ily. We therefore support this initiative and
are strengthening an inclusive approach." so-
cialbee guarantees continuous childcare, en-
abling the participants to focus on their voca-
tional training. In addition, trained mentors
guide them as they enter the labour market.
The aim is the long-term integration of
women and their families.
84,657
MANFRED SCHURTI
Important events
Porsche Ventures invested in
INTAMSYS. The company is
a global leader in 3D printing
systems for high-performance
materials.
Valentin Schä
fred Schurti
Laurin Heinrich is the new Porsche Junior
Twenty-year-old Laurin Heinrich of Würzburg
has made it - he will be competing in the 2022
season of the Porsche Mobil 1 Supercup as the
Porsche Junior. The junior driver beat 11 com-
petitors from the worldwide Porsche Carrera
Cups in a selection process held in Aragon, Spain,
at the end of November. Heinrich receives a
sponsorship package for the Porsche Mobil 1
Supercup worth 225,000 euros. Last season, he
clinched the rookie title in the international one-
make cup with the 375 kW (510 PS) 911 GT3
Cup. He won the Porsche Sports Cup in 2019
and secured the rookie championship title in the
Carrera Cup Deutschland the following year.
Manfred Schurti celebrates his 80th birthday
On 24 December, Porsche wished a
happy birthday to a man who achieved
24 podium finishes in 24 races in a
Porsche 935. Former works driver Manfred
Schurti turned 80 on Christmas Eve.
Born in Lustenau, Austria, Schurti is a
citizen of Liechtenstein and is the princi-
pality's most successful racing driver to
date. His career began on motorbikes and
he became Swiss motocross champion in
the 250 cc category at the age of 21. He
entered Formula Vee at 25. Porsche signed
him up as a works driver when he was
32 and he competed alongside Jacky Ickx,
Jochen Mass and Rolf Stommelen. He
ceased to compete in 1980, since when
he has been managing Liechtenstein's
Motor Vehicle Agency.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
61
60
BUSINESS PERFORMANCE
Global economy recovering
The global economy bounced back in 2021,
hitting a growth rate of 5.6 per cent at the
end of the year (previous year: -3.4 per cent).
The average rate of growth in gross domestic
product (GDP) was well above the previous
year's levels in both the developed economies
and the emerging markets. Many govern-
ments took steps to curb the impacts of the
pandemic and economic growth benefited
from these too. For example, the progress that
many countries made with vaccinating their
populations had a positive effect. The prices of
many energy resources and other commodities
increased significantly year-on-year. Raw
material and intermediate product shortages
increased and consumer prices rose more
quickly than in the previous year.
GDP in Western Europe increased by 5.4 per
cent in 2021 (2020: -6.5 per cent). The
German economy recorded growth of 2.7 per
cent in the year under review (2020: -4.9 per
cent). The German labour market recovered
in the course of the year - the unemploy-
ment rate and the number of people on short-
time work fell. Consumers and businesses
alike regained their confidence. GDP in the
economies of Central and Eastern Europe
increased significantly too, by 5.6 per cent
(2020: -2.4 per cent). Economic output
increased by 6.8 per cent in Central Europe
(2020: -2.1 per cent) and by 4.2 per cent
in Eastern Europe (2020: -2.8 per cent).
The situation in Russia was much the same,
where there was an increase of 4.3 per cent
(2020: -2.9 per cent).
The US economy grew by 5.7 per cent
(2020: -3.4 per cent). The US administration
introduced an extensive support package in
the first quarter of 2021 to further bolster
the economy. The Federal Reserve adhered to
its low interest rate. The weekly applications
submitted for unemployment support dropped
and the unemployment rate fell. GDP likewise
increased in the USA's neighbouring countries
- by 4.6 per cent in Canada (2020: -5.2 per
cent) and by 5.5 per cent in Mexico (2020:
-8.4 per cent). The Brazilian economy posted a
4.4 per cent increase in 2021 in spite of a high
rate of infection (2020: -4.2 per cent). Argen-
tina achieved growth of 8.4 per cent (2020:
-9.9 per cent). China felt the negative effects
of the pandemic earlier than other economies.
It had already achieved economic growth of
2.3 per cent in 2020. In 2021, the Chinese
government tackled isolated outbreaks with
a zero-COVID strategy. The Chinese econ-
omy grew by 8.1 per cent in 2021. Japan
recorded a 1.9 per cent increase in economic
performance (2020: -4.5 per cent).
Performance of car markets
The global car market increased by 4.2 per
cent to 70.9 million vehicles in 2021.
However, developments varied greatly in the
car markets around the world, on the one
hand due to the impacts of the pandemic at
the regional level and on the other due to
semiconductor supply bottlenecks. By the
end of the year, the Asia-Pacific region had
achieved growth above the global growth
rate. North America and Central and Eastern
Europe fell just short of the global rate.
Meanwhile, there was a downward trajectory
in Western Europe once again in 2021. In
Germany, new registrations even fell to the
lowest level since reunification.
The volume of the Western European car
market dwindled to 10.7 million vehicles in
the year under review - a drop of 2.0 per cent
compared with 2020. However, demand for
cars had already been weak in the previous
year. For comparison purposes, there
were 14.4 million new vehicle registrations
in 2019. This downward trend was due not
only to the impacts of the pandemic. In the
second half of 2021 in particular, it could
be attributed to the semiconductor shortage,
resulting in there simply being fewer cars
available. At 2.6 million units, the number of
new car registrations in Germany in 2021
consequently fell 10.1 per cent short of the
previous year's weak figure. For comparison
purposes, 3.6 million vehicles were newly
registered in Germany in 2019. The market
developments were slightly more moderate
in Spain (-0.9 per cent), France (0.5 per
cent) and the UK (1.0 per cent). Italy even
achieved an increase of 5.6 per cent.
Investment in 3D printing company
Porsche Ventures invested in INTAMSYS
in December. The company is a global leader
in 3D printing systems for high-perform-
ance materials. Thanks to years of research
and development, INTAMSYS achieved a
significant breakthrough in the small-batch
production of automobile parts and com-
ponents. The company has evolved into a
leading supplier in this segment since enter-
ing the market in 2016. Among other things,
its products are used in aerospace, the
automotive industry, medicine and scientific
research. Porsche Ventures is Porsche AG's
venture capital unit.
Cellforce production in Reutlingen-Nord
Porsche AG and Customcells Holding GmbH
selected a site in December - Cellforce
Group GmbH (CFG) intends to develop and
produce high-performance battery cells in
Reutlingen-Nord/Kirchentellinsfurt. Con-
struction is set to begin in 2022 and produc-
tion should be up and running in two years.
The aim is to initially produce high-perform-
ance battery cells for 1,000 vehicles a year.
The Cellforce battery cells could conceivably
be installed in high-performance electric
Porsche models. Porsche is investing a double-
digit million figure in the new Cellforce Group
GmbH. The chemistry behind the new
high-performance cells revolves around sili-
con as the anode material. This makes it pos-
sible to considerably increase the energy
density compared with the current produc-
tion batteries. The battery can be more com-
pact in design while offering the same energy
content. This new chemistry also reduces
the battery's internal resistance, enabling it
to absorb more energy during energy recu-
peration and making it more efficient during
fast charging. The battery cell is also said to
be more resistant to high temperatures. In
addition, all of the manufacturing value cre-
ation occurs in Germany in accordance with
stringent sustainability criteria. Important
raw materials such as nickel and cobalt are
sourced solely in Europe.
THE YARD diill
"In the beginning, I looked around and could
not find quite the car I dreamed of. So I de-
cided to build it myself." With this aspiration,
trailblazer Ferry Porsche set the tone for the
future. It is now more than 70 years since
he built the 356 and created the Porsche
sports car brand. Since then, his words have
lost none of their appeal. Quite the opposite,
in fact. Ferry Porsche's statement perfectly
describes the current mission with which the
company is shaping the future.
PORSCHE EXCLUSIVE MANUFAKTUR'S PAINT TO SAMPLE
Maritime Blue, Rubystar and Mint Green
The Porsche Exclusive Manufaktur has ex-
panded its colour spectrum. From 2022, cus-
tomers can have their cars painted in classic
Porsche colours irrespective of the model ser-
ies. The Paint to Sample and Paint to Sample
Plus categories feature countless colours. At
a new colour mixing bench in Zuffenhausen,
the colours are precisely blended down to
the last milligram using dozens of ingredients.
Shades such as Maritime Blue, Rubystar and
Mint Green from the 1990s enjoy cult status
among Porsche fans. In the past, they were
offered for the 911 (type 964). There are
more than 100 additional paintwork colours
to choose from for the 911 and 718 model
lines. For the Panamera, Macan and Cayenne,
there are more than 50 options, while a
further 65 colours complete the range for
Taycan customers.
The Porsche Exclusive
Manufaktur has expanded its
colour spectrum. From 2022,
customers can have their cars
painted in classic Porsche
colours irrespective of the
model series. The Paint to
Sample and Paint to Sample
Plus categories feature
countless colours.
Porsche invests in energy start-up
Porsche expanded its investment portfolio
in the field of smart city technology - the
Stuttgart-based sports car manufacturer's
venture capital unit Porsche Ventures became
a shareholder in 1KOMMA5° in December.
The start-up from Hamburg intends to expand
the market for CO2-neutral energy and air
conditioning technology in private households
in a sustainable and decentralised way.
1KOMMA5° acquires interests in leading
electrical installation companies across
Europe with a focus on renewable energies
(solar self-supply, heat pumps, energy stor-
age), supporting them with digitalisation
efforts and the centralisation of administrative
tasks. It also seeks to promote smart electri-
city tariffs and virtual power plant concepts.
58
First entirely virtual gaming concept study
Porsche and the Japanese video game devel-
opment studio Polyphony Digital Inc. created
the Porsche Vision Gran Turismo in November
as a promising virtual racing car. It is the first
concept study that Porsche has developed
specifically for a computer game. The game
will be release on 4 March 2022. The study is
designed for the PlayStation 4 and the new
PlayStation 5 and features exclusively in the
new Gran Turismo 7 game. Porsche sports
cars have been an integral part of the Gran
Turismo game since 2017. The model to
most recently make an appearance was the
Taycan Turbo S. The seventh release makes
an impression with the first entirely virtual
vehicle. "This opens up exciting possibilities
for us," says Michael Mauer, Vice President
Style Porsche. Possibilities that are otherwise
heavily regimented in the regular design pro-
cess for a production vehicle. The concept car
exhibits the brand's typical proportions with
an especially sporty height-to-width ratio, an
extremely low-set bonnet and very pro-
nounced wings. Gaming is of strategic inter-
est to Porsche. "We can engage young and
digital target groups in the place where their
automotive dreams are born: the world of
gaming," says Robert Ader, Vice President
Marketing at Porsche AG.
The market volume in Central and Eastern
Europe increased by 2.8 per cent to a total
of 2.9 million cars, with new registrations
increasing by 1.7 per cent in Central Europe
and by 3.6 per cent in Eastern Europe.
PORSCHE
Porsche mourns the death of Eberhard Mahle
Former racing driver Eberhard Mahle died on
21 December 2021 at the age of 88. Porsche
is in mourning for a man who had strong
affiliations with the company. Eberhard Mahle
was the son of Ernst Mahle, co-founder of the
Stuttgart-based company Mahle GmbH. He
won his first touring car race at the age of 21.
He then bought his first Porsche and came
sixth in the Achalm hill climb near Reutlingen
the following year. At the age of 26, he came
second in the Targa Florio in a Porsche 550
Spyder. By 1963, he had competed in around
210 races and rallies, scoring six overall wins
and celebrating more than 150 class victories.
Following an accident which was no fault of
his own, resulting in a break from racing, he
tackled the European Hill Climb Champion-
ship in 1966. The result - he became Euro-
pean champion.
EBERHARD MAHLE
A
23
ICONS OF PORSCHE FESTIVAL, DUBAI
Historic event in Dubai
Visitors flocked in their thousands to the
Icons of Porsche festival held in Dubai in
November. For Porsche, this was the
biggest exhibition of classic cars from the
museum to be shown outside of Germany
in 2021. Among other things, it featured
the visionary design studies in the Porsche
Unseen series. Hundreds of classic car
owners from the United Arab Emirates,
Bahrain, Kuwait, Saudi Arabia, Lebanon
and Oman travelled to Dubai to present
their cars. Manfred Bräunl, CEO of Porsche
Middle East and Africa: "The region is
home to a variety of rare and unique
Porsche classics."
Donation for inclusion in sports
The Ferry Porsche Challenge will promote
inclusion in sports. Under the patronage of
Paralympics champion Niko Kappel, sports
clubs big and small in Baden-Württemberg
and Saxony were encouraged to apply in
December. Interstate projects with sports
clubs from Baden-Württemberg and Saxony
can also apply. The top three places will
receive 75,000 euros each, 50,000 euros
have been allocated to each of six second
places and eight third places will each
be awarded 25,000 euros. All the nom-
inees also have the opportunity to win one
of two special prizes of 50,000 euros.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
In North America, sales of passenger vehicles
and light commercial vehicles (up to 6.35 tons)
increased by 3.9 per cent to 17.7 million
units in 2021. The US market grew by 3.4 per
cent to 15.1 million units. Sales in Canada's
automobile market rose by 6.7 per cent in
the reporting period, while there was growth
of 6.8 per cent in Mexico. The number of
passenger cars and light commercial vehicles
newly registered in South America increased
by 12.9 per cent to 3.5 million units.
In the Asia-Pacific region, the car market
increased by 5.0 per cent to 32.7 million
vehicles. A large proportion of this higher
volume came from China's car market where
the number of newly registered vehicles was
up 4.4 per cent year-on-year at 20.8 million.
In Japan, meanwhile, the car market fell
3.2 per cent short of the previous year's
figure, at 3.7 million units.
Deliveries
of new vehicles
300
200
THE CURRENT PORSCHE PRODUCT RANGE
64
256,255
246,375
250
150
The iconic 911 sports car enjoyed an espe-
cially strong market reception and hit a new
record of 38,464 deliveries. There were
30,220 Panamera vehicle deliveries, while
the 718 Boxster and 718 Cayman models
were delivered to 20,502 customers.
100
280,800
272,162
301,915
0
2017 2018 2019
2020
2021
Deliveries in 2021
America
Year-on-year comparison
50
Europe
The all-electric Porsche Taycan achieved an
outstanding increase - the vehicle was deliv-
ered to 41,296 customers, which equates
to a more than twofold year-on-year increase.
In spring 2021, the sports car manufacturer
presented a second body version, the Taycan
Cross Turismo. Deliveries of a third version,
the Taycan Sport Turismo, will begin in spring
2022, meaning demand can be expected to
continue to rise.
Detlev von Platen,
Member of the Executive Board -
Sales and Marketing
The global economy grew
by 5.6 per cent in 2021.
Of the key economic
regions, China recorded
the strongest growth
of 8.1 per cent. Germany's
gross domestic product
increased by 2.7 per cent
in 2021.
Economic growth
Percentage change in GDP
0%
62
42
Important events
8.1% China
5.7% US
5.6% Global economy
5.4% Western Europe
Taycan: deliveries more than doubled
Once again in 2021, Porsche SUVs were the
models in the greatest demand around the
world, with 88,362 customers taking delivery
of a Macan. The Porsche Cayenne followed
in second place with 83,071 units delivered.
2.7% Germany
2017
2018
2019
2020
2021
63
Deliveries: a new record
Porsche delivered 301,915 vehicles to
customers around the world in the 2021
financial year, giving the sports car manufac-
turer a year-on-year increase of 11 per cent.
All of the global sales regions contributed
to this increase. Porsche recorded its biggest
increase on the American continent, while
China remained the biggest single market.
Deliveries in Europe improved by seven per
cent. There is a noticeably high level of electric
sports cars in this market. Thirty-nine per
cent of the Porsche vehicles delivered in this
region in 2021 were electric - either plug-
in hybrids or all-electric Porsche Taycan cars.
"Despite the challenges posed by the semi-
conductor shortage and the disruption caused
by the COVID-19 pandemic, we have been
working hard to enable more customers than
ever before to fulfil their dream of owning a
Porsche," says Detlev von Platen, Member of
the Executive Board responsible for Sales and
Marketing at Porsche AG. "Demand remains
high and our order books are looking very
robust, so we start 2022 full of momentum
and confidence in all regions of the world."
"DESPITE THE CHALLENGES
POSED BY THE SEMI-
CONDUCTOR SHORTAGE
AND THE DISRUPTION
CAUSED BY THE COVID-19
PANDEMIC, WE HAVE
BEEN WORKING HARD TO
ENABLE MORE CUSTOMERS
THAN EVER BEFORE TO
FULFIL THEIR DREAM OF
OWNING A PORSCHE."
2016
Mission 2030
considerably in 2022.
A brand for those who follow their dreams
in Europe.
о
SPORTS CARS IN EYE-CATCHING COLOURS ARE ESPECIALLY POPULAR IN THE ASIAN MARKETS
ASIA-PACIFIC, AFRICA AND MIDDLE EAST
China: Porsche's largest single market
Porsche delivered its first sports car to main-
land China 20 years ago. China has been the
company's single biggest market since 2015.
China achieved an exceptional overall result
once again in 2021 with an increase of
eight per cent in comparison to its previous
record year, 2020. A total of 95,671 ve-
hicles were delivered to customers in China.
China was also the world's biggest market
for the Cayenne, Panamera and Macan model
series. One in three Macan units delivered
around the world in 2021 went to a Chinese
customer. Female buyers of the compact
SUV accounted for just under 60 per cent
of purchases.
Taiwan: upturn thanks to the Taycan
There was a four per cent increase in deliv-
eries to more than 4,000 in Taiwan in 2021.
As in many other markets, the Taycan
played a significant part in growth in Taiwan.
Taycan units accounted for around one in
five Porsche vehicles delivered in Taiwan
in 2021, with Taycan deliveries totalling 802.
Only the Cayenne and the Macan sold in
greater numbers, with 1,390 and 980 deliv-
eries respectively.
South Korea: Taycan in second place
With 8,425 vehicle deliveries in South Korea
last year, there was a seven per cent increase
in new Porsche ownership there. The Taycan,
which was rolled out in South Korea at the
end of 2020, was one of the success factors -
the electric sports car immediately shot to
second place with 1,288 units delivered,
behind the Cayenne on 3,480 units. The
718 mid-engine model series was relatively
low in comparison at 632 deliveries, but
this still represented a 30 per cent increase
in South Korea.
Japan: Macan the most popular
Following record deliveries in 2020, three
per cent fewer Porsche vehicles were
handed over to customers in Japan last
year (6,900 units). The Macan was the top
model in terms of deliveries in the year
under review with 2,109 vehicles delivered,
followed by the previous year's front-runner,
the 911 (1,529 vehicles). The Taycan was
rolled out in Japan in January 2021 and
784 customers took delivery of their all-
electric sport saloon in 2021.
Middle East: significant increase
Porsche delivered a total of 5,374 new vehicles
in the Middle East - a year-on-year increase
of 14 per cent. The Arab Gulf countries had a
comfortable lead in the region in terms of vol-
ume (4,427 deliveries) and outstripped their
prior-year result by 15 per cent. There were
also exactly 333 Taycan models delivered to
customers in the Arab Gulf countries.
Africa: promising outlook
Porsche recorded a total of 1,817 deliveries
in Africa last year. This is equivalent to
a decrease of five per cent compared with
2020. South Africa was the biggest single
market on the continent, with 875 new
Porsche vehicles being delivered to cus-
tomers there in 2021.
Australia: successful start for the Taycan
Porsche Cars Australia celebrated a milestone
anniversary in 2021 - 70 years previously,
the company officially imported the first two
Porsche 356 models there, laying the foun-
dations for the brand's presence in Australia.
In this anniversary year, deliveries were up
four per cent year-on-year at 4,431 vehicles
(2020: 4,243 Porsche vehicles). Approxi-
mately one in two Porsche models delivered
in Australia was a Macan. In the year it was
introduced in Australia, the Taycan accounted
for 531 deliveries to customers.
41,296
Taycan deliveries
Electrified vehicles
Proportion of all deliveries
39.4%
This figure significantly exceeds
the strategic target of 15 per cent.
Return on sales
The world is becoming increasingly digital,
more connected and also more volatile.
This is inevitably changing markets and what
customers need. Working environments are
growing ever more complex. Climate change
is increasing. Electromobility is becoming
more and more established. Porsche sees
these challenges as an opportunity: "The view
into the future is always tinged with uncer-
tainty. That's exactly why it's important for
the strategy to guide us and connect the
major issues to specific company aims. Our
Strategy 2030 provides an excellent basis
for this," says Oliver Blume, Chairman of the
Executive Board of Porsche AG. Specifically,
it is about making the company's actions
even more sustainable. Giving the customers
a comprehensive product experience. And,
in the process, doing business profitably
and being a good employer. The corporate
strategy shows us the way. Porsche certainly
intends to make a success of transformation.
with a plug-in hybrid drive.
UK: ranked fourth globally
The United Kingdom of Great Britain and
Northern Ireland is the fourth biggest market
in the world for the sports car manufacturer
based in Stuttgart. Deliveries there fell only
moderately by three per cent in spite of
Brexit and other challenges caused by semi-
conductor supplies and the coronavirus pan-
demic. The Taycan was the top-selling model
series, with deliveries increasing 28 per cent
year-on-year to 4,062 units. The popularity
of the Porsche 911 likewise continued to
increase, with deliveries increasing by 10 per
cent. In what was undoubtedly also a result
of the appeal of the product portfolio, the
new 911 GT3 and the sporty 911 GTS
models were rolled out in the course of the
year around two-and-a-half years after the
launch of the 992.
Italy: high proportion of convertibles
Porsche delivered 6,274 vehicles in Italy in
2021-eight per cent more than in the previ-
ous year. While deliveries of the Porsche 911
remained relatively stable at 1,248 units, the
delivery figures for the Taycan, Cayenne and
Panamera increased in particular. There was
one Taycan delivery for every two 911 units
delivered to customers in 2021. In addition,
Porsche customers in Italy evidently enjoy
open-top driving, as Cabriolets and Targa
models accounted for 44 per cent of the 718
and 911 models delivered.
France: Cayenne the most popular model
The primary successes in the French
market can be summarised as follows -
a sharp increase in Panamera numbers,
strong Taycan growth and a slight increase
in Cayenne deliveries. The Cayenne never-
theless comfortably remained the front-
runner among all the model series with
a year-on-year increase of four per cent
to 2,371 units delivered.
Switzerland: second best result
Porsche delivered more vehicles in Switzer-
land in 2021 than in the year before the
pandemic. A total of 3,845 delighted Swiss
customers took delivery of their new sports
cars. This equates to an increase of 10 per
cent compared to 2020 and is the second
best result since the sales company was
founded. The most popular model was
the Macan (1,201 units), followed by the
911 (970 units).
More than twice as many units
as in 2020.
Important events
67
S.TA5133E
2021 financial year in figures
Porsche AG Group
301,915
Deliveries of new vehicles
The sports car manufacturer
therefore achieved a year-on-year
increase of 11 per cent.
16.0%
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
€6.4 billion
Austria: high proportion of electric cars
Deliveries of new cars to customers in Austria
fell by around five per cent in 2021 and
totalled 1,319. Increases in deliveries of the
Porsche 911, Panamera and Taycan were
offset by decreases in deliveries of the 718,
Cayenne and Macan. Of the Cayenne and
Panamera units delivered in Austria in 2021,
96 per cent respectively were plug-in hybrids -
one of the highest proportions in the world.
from operating activities.
Global economy on a growth path
Our planning is based on the assumption that
global economic output will continue to grow
on the whole in 2022. We believe that the
effects of the pandemic can be sustainably
stemmed. We also assume that the shortages
of intermediate products and raw materials
will be overcome in 2022. We consider pro-
tectionist tendencies, potential turbulence on
the financial markets and structural deficits in
some countries to be a source of risk. At the
same time, growth prospects are being kept
in check by ongoing geopolitical tension and
conflict. Nevertheless, we believe that both
developed economies and emerging markets
will register positive movements in economic
output. We also expect to see continued
growth in the global economy in the years
2023 to 2026.
According to our forecasts, economic growth
in Western Europe will strengthen significant-
ly in 2022. This will also be true for Germany.
We are expecting gross domestic product
(GDP) in Germany and in Western Europe as
a whole to generally outperform 2019, the
last year not to be affected by the pandemic.
We are also forecasting growth in Central
and Eastern Europe, albeit with slightly less
momentum in Eastern Europe and in the
Russian economy.
We are anticipating relatively strong eco-
nomic growth in the US in 2022. The Federal
Reserve has offered the prospect of rising
interest rates in the course of the year -
albeit at a low level. How inflation continues
to develop is an important factor regarding
potential prime rate increases. We expect to
see a significant increase in economic output
in Canada too, while we are anticipating more
moderate growth rates in Mexico. The same
goes for Brazil. According to our forecasts,
the Chinese economy will continue to grow.
And in Japan, economic output is likely to
enjoy solid growth in 2022.
Performance of car markets
Our forecasts indicate that there will be
slightly different performance trends in the
car markets in the various regions of the
world in 2022. Overall, we expect to see
a moderate increase in new vehicle sales
globally. However, this is premised on the
pandemic being successfully contained and
the shortages of intermediate products and
raw materials being overcome. We expect
demand for passenger vehicles to grow
globally in the years 2023 to 2026 too.
We are forecasting a noticeable increase in
new vehicle registrations in Western Europe
this year. Semiconductor supply bottlenecks
will likely continue to weigh heavily on the
car market. We nevertheless expect the num-
ber of new car registrations in Germany to
be significantly up year-on-year in 2022. In
the UK and Spain too, we expect to see sig-
nificant increases in 2022. According to our
forecasts, the car markets in France and
Italy will grow slightly. We expect to see
noticeably higher numbers of new registra-
tions in Central and Eastern Europe.
In the markets for passenger vehicles and
light commercial vehicles (up to 6.35 tons)
in the US and in North America as a whole,
we expect new registrations to be slightly up
year-on-year in 2022. However, demand for
vehicles in the SUV and pick-up segments
can be expected to remain high. We are
forecasting moderate growth in Canada's
and Mexico's car markets. The South Ameri-
can car markets are dependent on global
demand for raw materials and are heavily
influenced by how the global economy devel-
ops. We expect new registrations to increase
considerably in 2022 in South America as
a whole and in the largest countries, Brazil
and Argentina.
Passenger car markets in the Asia-Pacific
region are expected to be slightly above the
previous year's level in 2022. Our forecasts
suggest that China's market volume will
likewise be slightly above the figure for 2021.
The market in Japan is expected to improve
According to our forecasts,
economic growth in Western
Europe will strengthen
significantly in 2022. This
will also be true for Germany.
We are expecting gross
domestic product in Germany
and in Western Europe as
a whole to generally out-
perform 2019, the last year
not to be affected by the
pandemic. In the car markets
70
SH CA 8989E
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Cash flow
PORSCHE STRATEGY 2030
OUTLOOK
69
in Western Europe as a
whole and in Germany, we
expect to see a noticeable
increase in new registrations
in 2022.
Important events
Number of employees
The global workforce grew by just
under two per cent.
€33.1 €5.3 bilion
Sales revenue
€
This figure rose by more than
15 per cent year-on-year.
€
36,996
Operating profit
(EBIT)
€5.7 bilion
Profit before tax
This figure rose by more than
30 per cent year-on-year.
68
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
billion
-5%
the discussion of content and lays the
groundwork for policy decisions in the rele-
vant management and steering committees.
The Porsche management bodies report
the DKI all the way up to the Executive
Board. They also adopt binding targets for
the various business divisions. For example,
the product development process features
target values at the vehicle level.
All the Volkswagen Group brands calculate
the Decarbonisation Index on the basis of
standardised methodology. It is then con-
solidated as a performance indicator at the
Volkswagen Group level.
Vehicle fleet electrification is a key lever
for DKI reduction. Other leverage points
include making systematic use of green
electricity, definition of the DKI targets for
vehicle projects and the decarbonisation
of production.
Porsche's DKI has fallen by around five per
cent since the defined base year, 2019.
The two levers with the biggest influence
on reduction are the electromobility cam-
paign and the renewable energy strategy
for the service lives of vehicles.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
94
Environment
95
THE DECARBONISATION INDEX
HAS FALLEN BY AROUND
FIVE PER CENT SINCE
THE DEFINED BASE
YEAR, 2019.
PRODUCTION DECARBONISATION ✓
24
PORSCHE
Recycling
As a strategic performance indicator, the
DKI contributes to the comprehensive
management of the company's progress in
becoming CO2-neutral. All the activities
relevant to the DKI are consolidated within
the Decarbonisation Task Force and are as-
sessed by a group of experts from various
business divisions. The body draws up pro-
posals of targets and tracks the progress
made in each case. It also manages the de-
fined strategic programmes on the basis
of performance indicators and adopted
ramp-up curves. It serves as a forum for
Driving emissions
Upstream chains
for fuel extraction
and refining, CO₂
emissions caused
by power generation
Porsche is clearly committed to the goals
of the Paris Agreement. The sports car
manufacturer is to be balance-sheet
CO2-neutral across the entire value chain
from 2030. Porsche is systematically pur-
suing an electrification strategy and is
setting itself ambitious decarbonisation
targets, also in comparison with the rest
of the industry. The CO2 emissions of the
company and its products are to be reduced
throughout the life cycle. The sports car
manufacturer's own production activities
constitute a key part of its decarbonisation
programme. Porsche has therefore add-
itionally developed a target vision of a
zero-impact factory for its production
activities, comprising 11 areas of action.
The consumption of materials and re-
sources is another focal area. The aim is to
achieve closed cycles wherever possible.
CO₂ emissions from
fuel combustion
during the vehicle's
service life
Calculation is based on company-specific premises
and values and on data from LCA databases. Vehicle
servicing is not factored into the calculation.
شدم
Vehicle fleet electrification
is a key lever for reduction
of the Decarbonisation
Index (DKI). Other leverage
points include making
systematic use of green
electricity, definition of
the DKI targets for vehicle
projects and the decar-
bonisation of production.
End of life
Upstream chain
Energy expenditure
for vehicle recycling
Energy and fuel at
non-production sites,
employee mobility,
waste, logistics, etc.
PORSCHE'S DECARBONISATION PROGRAMME AIMS TO ACHIEVE BALANCE-SHEET CO₂ NEUTRALITY BY 2030
(Scopes 1 and 2) on the one hand and also
includes other upstream and downstream
CO₂e emissions during a vehicle's life cycle,
in other words from raw material extraction
and use through to the recycling of end-of-
life vehicles (Scope 3).
The DKI is subject to regular modification
due to changes in the internal and external
requirements (such as test cycles) and ad-
vancements in findings. DKI values previous-
ly published can therefore be adapted to
new premises and be changed for the pur-
poses of presenting a methodologically
consistent time series.
Other
CO2 EMISSIONS PER VEHICLE
All the requirements are presented in
Porsche's environmental compliance man-
agement system (ECMS). A guideline stipu-
lates a standardised approach for the
company and its subsidiaries. The ECMS
is part of the company's overall manage-
ment system. It serves to organise and de-
termine the responsibilities and procedures
regarding environmental and energy as-
pects within all the departments and div-
isions. The ECMS requirements are based
on the specifications of the Volkswagen
Group and are incorporated into the
Porsche specifications by the Environment
and Energy Management department. This
ensures that binding obligations are met.
At the same time, the environmental as-
pects of sustainability are to be taken into
account in all business processes. The
Stuttgart-Zuffenhausen plant has enjoyed
THAN 90 PER CENT AT
medium
Porsche has initiated an
extensive decarbonisation
programme. Porsche
wishes to achieve balance-
sheet CO2 neutrality across
the entire value chain by
2030.
low
high
Corporate governance
Stakeholder dialogue
7 pp. 82-87
97
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Environment
New buildings go far beyond the minimum
statutory energy efficiency requirements.
One plant has already been certified in
accordance with the highest standard stipu-
lated by the German Sustainable Building
Council (DGNB). In addition, minimum cri-
teria have been stipulated for new builds.
Environmental compliance
Environmental protection is one of the six
compliance topics at Porsche. Europe-wide
regulations and directives, German national
laws, federal state laws and ordinances,
and municipal by-laws must be observed.
The Environment and Energy Management
department ensures compliance through
officers who follow and assess all the legal
developments and then notify the company
divisions affected. We are not aware of any
violations of environmental or energy legis-
lation regulations at Porsche sites in the
reporting period.
Porsche is continuously promoting and in-
creasing the proportion of the renewable
energies that the sites generate themselves.
In Leipzig, for example, the company
makes use of the solar energy generated
by a four-megawatt photovoltaic system.
Highly efficient combined heat and power
plants with overall efficiency of more than
83 per cent cover most of the remaining
energy needs.
Efficient use of energy
Independent third parties audit the official
certifications. In addition, Porsche per-
forms annual system and process audits
to determine whether and to what extent
all the applicable environmental and energy
legislation is being observed and adhered
to across the company.
REDUCED BY MORE
In addition to the Stuttgart-Zuffenhausen
plant, Porsche Leipzig GmbH, the Weissach
Research and Development Centre and its
external sites, the central parts warehouse
in Sachsenheim and Porsche Werkzeugbau
GmbH have all likewise been certified as
compliant with this standard and with the
ISO 14001 environmental management
system. Porsche records the environmental
impacts at the Stuttgart-Zuffenhausen site,
assessing all the relevant environmental
pollution in the air and water, energy con-
sumption and waste volumes.
Certified management systems
The Porsche strategy defines short-,
medium- and long-term environmental and
energy management measures. These are
founded on the environment and energy
efficiency strategy and environmental pol-
icy. Top management evaluates these set
targets and measures at least once a year
and accordingly determines what action
is required. The overarching intention is
to achieve ongoing improvements, in
particular implementing the requirements
as per ISO 14001, ISO 50001 and the
EMAS Regulation.
The Member of the Executive Board re-
sponsible for Production and Logistics is
responsible for systematic implementation
of the necessary measures and is assisted
by the Environment and Energy Manage-
ment department. The projects include
reducing the environmental impact of pro-
duction by 45 per cent between 2014
and 2025. This target figure includes energy
and CO2 per vehicle.
-45%
45 PER CENT
BETWEEN 2014
AND 2025.
BE REDUCED BY
THE ENVIRONMENTAL
POLLUTION CAUSED BY
PRODUCTION IS TO
cent since 2014. The energy supplies at the
two production sites in Stuttgart-Zuffen-
hausen and Leipzig are sourced from green
electricity and biomethane.
The sports car manufacturer has reduced
the CO2 emissions per vehicle at its own
production facilities by more than 90 per
Porsche is working towards the clear goal of
a zero-impact factory that produces without
any negative environmental impacts. The
factory for the all-electric Porsche Taycan
at the main plant in Stuttgart-Zuffenhausen
is the first milestone in this direction. When
expanding the plant, the company add-
itionally optimised the entire site and made
it balance-sheet CO2-neutral. The minimal
remaining CO₂ emissions are offset.
Target: balance-sheet CO₂ neutrality
At Porsche, environmental protection is
determined on the basis of internal policies
and strategic guidelines. The Group's Envir-
onment and Energy Management guideline
defines a standardised approach and the
responsibilities. It assists the Group com-
panies in systematically identifying, fulfilling
and reviewing all the environmental and
energy requirements.
↓CO₂
PLANTS.
OWN PRODUCTION
THE COMPANY'S
validation under the Eco-Management
and Audit Scheme (EMAS) for over 20 years.
It has also been in compliance with the
ISO 50001 energy management standard
since 2011.
Service life
1 Porsche bases its calculation of the DKI among other things on assumptions which are founded on statistics.
They are model-based calculations that draw on company-specific premises and values and on data from LCA
databases. Total vehicle mileage of 200,000 km is assumed for the Porsche fleet vehicles. Vehicle servicing
is not factored into the calculation. Intrinsic tolerances cannot be ruled out of the modelling. The target of bal-
ance-sheet CO₂ neutrality in 2030 is founded on averaging.
Production
Impacts on the economy, the environment and society
Other
⚫End of life
Tailpipe
Fuel
In-house
Supply chain
2021
2020
2019
90
with innovative products
and technologies and
attractive services.
mobility of the future
0
CIRCULAR ECONOMY
is seeking to shape the
portfolio represents the core
20
40
emissions. The product
environmentally harmful
responsibility for reducing
ment to the climate targets
agreed on in Paris in 2015.
The company assumes
60
Porsche has made a commit-
63.8
65.3
67.3
Tons of CO2
per vehicle
Porsche calculates the volume of its CO2 emissions in tons per vehicle all along the value
chain using the Decarbonisation Index (DKI). This has fallen by around five per cent
since the defined base year, 2019 ( Vehicle decarbonisation, pp. 94-95). As such,
Porsche is contributing to sustainable industrialisation and is playing its part in SDG 9
and 13 being achieved.
of its activities. Porsche
Energy expenditure
for vehicle
manufacture
There are two factors which are crucial when
it comes to modern and future-proof vehicle
architecture - sustainable materials and
consideration of the environmental impacts.
Long-lasting Porsche sports cars, quality
workmanship and the use of low-wear
materials are key aspects of the Porsche
principle, which the company wishes to
strengthen through its engagement. Porsche
has set itself the goal of closing materials
cycles, with the resources used being fed
back into a production process at the end of
a vehicle's service life. The company takes
the environmental impacts of the materials
it uses for its products into account and
evaluates the materials on the basis of sus-
tainability aspects. In this way, the circular
economy is further expanded. It represents a
strategic priority. This aspiration is also re-
flected in the vision of the production of the
future. Based on the guiding principle of a
zero-impact factory, negative environmental
impacts should be avoided in the production
processes wherever possible.
RESPONSIBLE CONSUMPTION
In-house
DECARBONISATION INDEX (DKI)
The DKI therefore comprises the production
sites' direct and indirect CO₂e emissions
the value chain including the energy and fuel
emissions of non-production sites and busi-
ness trip and logistics emissions.
The DKI also records other emissions within
• Recycling assesses the emissions caused
during disassembly.
⚫ Service life encompasses the emissions re-
lated to fuel/power supply as well as to ve-
hicle operation over total mileage of
200,000 km per vehicle.
• The supply chain and production include the
emissions generated during raw material
extraction, component production and the
manufacturing steps of body construction,
paintwork and assembly.
The Decarbonisation Index (DKI) is Porsche's
most meaningful instrument for measuring
and controlling progress across all the div-
isions. The aim of the DKI is to offer as com-
prehensive an overview as possible of the CO₂
equivalent emissions throughout the value
chain. It is primarily based on life cycle as-
sessments which Porsche performs on the
basis of systematic methods that are stand-
ardised in ISO 14040/44.' A life cycle as-
sessment examines environmental impacts
such as the CO2 footprint caused throughout
a vehicle's life cycle during manufacture, use
and recycling. The scope of consideration of
a vehicle's life cycle encompasses the vehicle
and all of its parts:
Decarbonisation Index
Energy expenditure
for supply chain
further processing
Supplier
Material extraction
and processing
Raw materials
12 G
Supply chain
Target: decarbonisation and CO₂ neutrality
The company has initiated an extensive de-
carbonisation programme. Porsche wishes to
achieve balance-sheet CO2 neutrality across
the entire value chain by 2030. This is the
sports car manufacturer's contribution to the
UN's climate targets being achieved.
Advancing climate change means the
global automotive industry has obligations.
Newly developed vehicles and drive
systems need to significantly reduce CO₂
pollution. Porsche intends to continuously
lower its CO2 emissions all along the
value chain, including after its vehicles' life
cycles. The sports car manufacturer is
intensively expediting the electrification
and hybridisation of its product portfolio
to this end. The vehicles are at the heart
of an extensive and comprehensive
decarbonisation programme within the
sports car manufacturer's strategy.
(DECARBONISATION PROGRAMME)
VEHICLE DECARBONISATION
93
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Environment
THE TAYCAN MODELS ARE AVAILABLE WITH ENTIRELY LEATHER-FREE INTERIORS
Porsche has set itself the
goal of closing materials
cycles, with the resources
used being fed back into
a production process at
the end of a vehicle's
service life. The company
takes the environmental
impacts of the materials it
uses for its products into
account and evaluates the
materials on the basis of
sustainability aspects.
The Porsche footprint can be reduced
by means of the increased use of sec-
ondary materials. By using recycled ma-
terials, Porsche also conserves primary
materials. In this way, the sports car
manufacturer is increasingly helping
SDG 12 and sustainable resource man-
agement to be achieved.
RECYCLED MATERIALS
FOR A REDUCED
MATERIAL FOOTPRINT.
Porsche is reducing its material foot-
print by increasingly using recycled
and sustainable materials. In this way,
the company is systematically in-
creasing the added value of the pro-
duction processes.
The earth's resources are finite. The
United Nations is therefore seeking
to establish sustainable resource
management globally by 2030 and
to ensure that natural resources are
used efficiently. The contributions
made here are assessed by means of
the material footprint.
AND PRODUCTION
Concrete measures have already been and
will be adopted within the decarbonisation
programme. These will be founded on three
guiding principles, which also represent the
priorities in descending order. At the top of
the list are measures to avoid or reduce CO2
emissions. Second come measures that seek
to switch the energy sources used in the
value chain to less CO₂-intensive or to renew-
able energies. And in accordance with the
third guiding principle, CO2 emissions which
cannot be avoided will be offset through
climate protection projects which meet the
most stringent international standards.
important
7 p.97
Diversity and equal
opportunity
Policymakers
Media
EO
NGOs/non-profit
organisations
Sustainability management
82
and experts
Scientific community
Customers and
business partners
Employees
8=
Residents and
communities
48
The most important Porsche stakeholders
as determined by internal analyses.
→ GRI 102-40, 102-42, 102-43, 102-44
Porsche stakeholders
value
alliance
slab de
slab de
dabad
dabw.de
sdalw.de
OLIVER BLUME AT THE AUTOMOTIVE INDUSTRY STRATEGY
DIALOGUE IN BADEN-WÜRTTEMBERG
Baden-Württemberg
strategiedialog
automobiwirtschaft BW
74
Bako Wirtember
wa
and associations
Competitors
83
Dialogue with politics
The global community wishes to slow
down climate change. This calls for
strategies and action plans to be
developed. The industry players there-
fore need to disclose their strategies
regarding how they are adapting to
the consequences of climate change,
building up resilience and limiting harmful
emissions. CO₂ emissions need to be
reduced in order to protect the climate.
strategiedialog
automobilwirtschaft BW
berg
84
the European Green Deal
as a key framework for
the future. Porsche's
activities are directed at
promoting a Europe that
is harmonious, sustain-
able and internationally
competitive. The European
Single Market, cross-border
trade, the free movement
of workers and the sharing
of knowledge determine its
competitiveness.
Porsche supports the Paris
Agreement and welcomes
As a matter of course, Porsche remains
impartial in its dealings with political parties
and interest groups. The company does not
donate to political parties. During the report-
ing year, it incurred no expenditure related
to supporting party events, advertising in
publications affiliated with parties, or exter-
nal lobbying agencies or services.
Porsche's activities are directed at promoting
a Europe that is harmonious, sustainable
and internationally competitive. The European
Single Market, cross-border trade, the
free movement of workers and the sharing
of knowledge determine the company's
competitiveness. Porsche supports the Paris
Agreement and welcomes the European
Green Deal as a key framework for the future.
The company promotes free, fair, sustainable
and rule-based international trading relation-
ships. These then protect human rights and
promote prosperity, employment and growth.
Sustainability management
87
ENVIRONMENT
Decarbonisation
Circular economy
ENVIRONMENT
DECARBONISATION
STAKEHOLDER SURVEY AND
Porsche has made a commitment to the
climate targets agreed on in Paris in 2015.
The company assumes responsibility for re-
ducing environmentally harmful emissions.
The product portfolio represents the core of
its activities - Porsche is seeking to shape
the mobility of the future with innovative
products and technologies and attractive ser-
vices. The premium manufacturer is develop-
ing future-oriented drive concepts in order to
significantly reduce CO2 emissions, focusing
in particular on electromobility. Half of all new
Porsche models are to have an electric motor,
in other words be all-electric or partially elec-
tric, by 2025. Porsche entered this era back
in 2019 with the Taycan, a thrilling sports car
that blends tradition and the future. In add-
ition to its electrification strategy, Porsche
has enshrined the continuous decarbonisa-
tion of its products and business processes
in its strategy. This applies to the entire life
cycle. In addition to the CO₂ emissions
caused by vehicle production, the emissions
in the supply chain and during a vehicle's ser-
vice life are likewise taken into account.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
Infrastructure and industry are to be
sustainable around the world by 2030.
In addition, resource efficiency is to be
promoted and environmentally sound
technologies are to be expedited. The United
Nations gauges the progress made with
these targets on the basis of CO2 emissions.
The lower these are, the more sustainable
the contribution made to creating a liveable
future for the global community.
13 ◉
CLIMATE ACTION
• American Chamber of Commerce in
Germany e.V. (AmCham Germany)
•Society for the Advancement of the Kiel
Institute for the World Economy
⚫ Südwestmetall (Baden-Württemberg
employers' association for the metal
and electrical industry)
■Chamber of Commerce and Industry
of the Stuttgart Region (IHK)
Leipzig Chamber of Commerce and
Industry (IHK)
Industry Association of Baden-
Württemberg (LVI)
German Association of the Automotive
Industry (VDA)
provides a selection of Porsche's member-
ships of business and political organisations
and associations:
Porsche does not maintain any representative
offices of its own. Political lobbying is handled
by the Volkswagen Group's representative
offices in Berlin and Brussels. The list below
Principles such as integrity, transparency and
traceability as well as guidelines on contact
with politicians constitute part of the Group-
wide policy. The policy also regulates the
political lobbying process. Accordingly, all
the people responsible for politics at Porsche
and all the brands, foreign markets and
divisions within the Volkswagen Group notify
the Group's Public Affairs department of
their activities. Activities within business and
political associations are likewise handled in
accordance with the principles of openness,
traceability and responsibility. Competition
and antitrust legislation as well as other legal
provisions are taken into account.
The Politics and Society department coordin-
ates all the political topics that are relevant
to Porsche. It does this at all levels, whether
local, regional, national or international. It
is also responsible for the company's political
lobbying. The team additionally works with
associations and is in contact with numerous
non-governmental organisations as well as
civil society, political and business represen-
tatives. Its activities include the organisation
of and support for visits by politicians and
political events as well as providing regular
updates on political topics and developments
to the Executive Board. All of Porsche's polit-
ical activities are coordinated via the Govern-
mental Affairs Steering Committee to ensure
a joined-up approach and consistent com-
munications in dialogue with partners. There
is coordination with the Volkswagen Group
via the Group-wide Public Affairs steering
body, which reports regularly to the Board of
Management of the Volkswagen Group.
Porsche operates in a complex and heavily
regulated field. Numerous circumstances
have to be taken into account in business
decisions. The consequences of these
decisions for the stakeholders also have to
be assessed and incorporated into the
process. It is necessary to engage in
transparent and proactive dialogue with
governments, parliaments, authorities,
associations, institutions and representatives
of civil society through political lobbying.
In this way, Porsche helps shape the legal
framework for its business activities.
9
MATERIALITY ✓
→ GRI 102-40, 102-43, 102-44, 102-46,
102-47, 102-48
Since 2013, Porsche stakeholders have,
upon request, been offering the company
their views and expectations regarding
sustainability and future challenges. This
exchange and the materiality analysis
process occur every two years and serve as
the cornerstones of reporting on and the
reviewing and further development of the
company's sustainability strategy.
Long-term
customer relations
and satisfaction
7 p. 133
Compliance and
integrity
7 pp. 126-127
Customer and vehicle safety
Digitalisation, data protection
and corporate digital responsibility
7 pp. 128-129
7 p. 134
Consumption of resources and
recycling in production
7 pp. 98-99
Transparent
corporate governance
7 p. 125
Protection of
biodiversity
7 p. 100
Corporate co-determination
7 p. 130
not so important
Field of activity
Environment
Social affairs
7 p. 118
Employee development
and socially ethical
transformation
7 pp. 116-117
Occupational
health and safety
7 pp. 118-119
Safeguarding
of human rights
7 pp. 131-132
Attractiveness as an employer
7 pp. 114-115
Business relevance for Porsche
7 pp. 112-113
Innovations
Vehicle
decarbonisation
In summer 2021, the sports car manufacturer
invited various stakeholders to evaluate
Porsche's sustainability activities in an an-
onymous, international online survey for the
fifth time. In total, 1,440 people responded.
Around 84 per cent of the responses came
from European markets and around 14 per cent
from China. Two per cent of the responses
came from other international markets, but
were included in the European evaluations
due to their low numbers. Alongside custom-
ers, business partners, analysts/investors,
politicians and representatives of public
authorities, media outlets, and representa-
tives from NGOs and academia, Porsche
also surveyed a large number of its employ-
ees. Owing to the abundance of employee
responses, the internal and external stake-
holders were assessed using a 50:50 weight-
ing. The responses from external stake-
holder groups were weighted equally. The
methodology and weightings are comparable
to those of the previous survey conducted
in 2019.
Before conducting the online survey, the
company modified the selection of sustain-
ability aspects in consultation with internal
and external experts, taking into account
recent changes and incorporating relevant
topics from the Sustainability Strategy 2030.
In all, the survey featured 23 key topics.
The members of the Porsche Sustainability
Council also commented on the sustainability
topics relevant to the company in personal
expert interviews. They discussed their input
with the Porsche Executive Board in the year
under review. Overall, they praised the in-
corporation of their input into the corporate
strategy and the Executive Board's active
practising of this. At the same time, they
referenced the topic of diversity and Porsche's
socially ethical transformation.
In late summer 2021, 23 identified sustain-
ability topics were evaluated in detail from
the company's perspective in a multistage
process. Management representatives from
all the relevant departments, representatives
of the corporate strategy and a selection
of key markets evaluated and prioritised the
topics. Their assessment was founded
on the topics' business relevance for Porsche
regarding the opportunities and risks for
business development, the corporate strategy
and the business result. The circle of partici-
pants also evaluated the impacts of Porsche's
business activities on the economy, the envir-
onment and society based on the defined
topics. Porsche combined the results with
the stakeholder evaluations to create
a materiality matrix.1
This exemplifies the most important topics
for Porsche and its stakeholders and their
impacts on the economy, the environment
and social affairs. It also correlates them.
The 2021 materiality matrix presents the
topics with the highest prioritisation in
the top right. A number of them differ from
the 2019 materiality matrix in terms of
their classification. The topic of "Innovations"
was included in the evaluation for the first
time in the year under review and was deemed
a core topic both by the stakeholders and by
the company. Both parties also rated the
relevance of "Long-term customer relations
and satisfaction" more highly. The aspect of
"Consumption of resources and sustainable
raw materials in vehicles" was likewise rated
more highly. The topic of "Digitalisation, data
protection and corporate digital responsibility",
which was featured in the survey for the first
time, was given a similar evaluation. For the
stakeholders, the topic of "Compliance and
integrity" increased in importance.
The results of the materiality analysis were
confirmed by the Environment and Sustain-
ability Steering Group and by the Executive
Board. Porsche presents all the material
topics and how they are handled in the cor-
responding topic sections. Porsche has also
incorporated other topics of relevance to
the company into this report. The findings of
the materiality analysis make an important
contribution to the further development of
Porsche's Strategy 2030.
The materiality matrix
exemplifies the most
important topics for
Porsche and its
stakeholders and their
impacts on the economy,
the environment and
social affairs. The findings
of the materiality analysis
make an important
contribution to the further
development of Porsche's
Strategy 2030.
'The materiality matrix sets the relevance for stake-
holders (y-axis) against the business relevance for
Porsche (x-axis). The assessments of the impacts of
the business activities on the economy, the environment
and society across the 23 key topics are presented in
the form of circles of three different sizes representing
three levels: "high", "medium" and "low". At the
same time, colour coding is used to classify the three
dimensions "Environment" (white), "Social affairs"
(light grey) and "Corporate governance" (grey).
Materiality matrix ✓
→ GRI 102-44, 102-46, 102-47
high
Relevance for stakeholders
7 pp. 94-95
medium
New mobility concepts
7 pp. 104-105
Sustainability in
the business processes
7 p. 124
Social commitment
7 pp. 148-159
Consumption of re-
sources and sustainable
raw materials in vehicles
7 p.98
Alternative
drive systems
7 pp. 102-103
Environmental protection
in the supply chain
7 pp. 131-132
Production
decarbonisation
ΜΟΙ
very important
86
Sustainability management
Governance and transparency, p. 122
78
79
SUSTAINABILITY ORGANISATION
→ GRI 102-43
Sustainability is enshrined as a central
cross-cutting issue in Porsche's Strategy
2030. Responsibility for this lies directly
with the Chairman of the Executive Board,
with additional support from the Member
of the Executive Board responsible for
Production and Logistics and the Member
of the Executive Board responsible
for Procurement.
Porsche's sustainability organisation is
established throughout the company.
A transparent internal structure with defined
responsibilities allows material topics to
be handled consistently and effectively. This
is underpinned by the Group's sustainability
guidelines, which contain binding rules on
organisational processes, topic management,
project implementation, and communication
of all sustainability topics.
The Executive Board of Porsche AG is the
highest authority with regard to sustainable
company development. It determines the
fundamental strategic direction and concrete
sustainability targets in regular strategy
workshops. It also decides on the realisation
of far-reaching sustainability measures and
flagship projects.
The Sustainability department within the
General Secretary and Corporate Development
division is responsible for the sustainability
strategy and its continued development.
It realises sustainability projects and manages
the company's sustainability bodies. In line
with the Volkswagen Group Sustainability
Guidelines, it also serves as the interface
with the Volkswagen Group, where it
represents the Porsche brand's sustaina-
bility management.
In addition, the Politics and Society depart-
ment of the Communications, Sustainability
and Politics division is responsible for internal
and external sustainability communications,
non-financial reporting and stakeholder
management. It engages in sustainability
networks. The office of the Porsche Sustain-
ability Council and project management for
all activities relating to the Value Balancing
Alliance are also located here.
The Environment and Sustainability Steering
Committee is a cross-departmental body
comprising representatives of all the relevant
departments. It determines and consolidates
the direction and content of the sustainability
strategy, for its subsequent adoption by the
Environment and Sustainability Steering
Group. The Steering Committee makes deci-
sions regarding the roadmap and objectives
within the sustainability strategy. It also
forms working groups to prepare, evaluate
and refine topics, projects and initiatives
relating to sustainability. It generally holds
bimonthly meetings and reports to the
Steering Group above it.
On this basis, the Environment and Sustain-
ability Steering Group determines the focuses
and direction of the sustainability strategy,
which are then presented to the Executive
Board to be decided upon. The Steering Group
is composed of the heads of the main divisions
and can be expanded flexibly as required. It
addresses all the topics conducive to the
development and creation of the sustainability
strategy and commissions the Environment
and Sustainability Steering Committee with
preparing and coordinating topics, projects
and initiatives relating to sustainability. The
Environment and Sustainability Steering Group
meets once a quarter and provides regular
reports to the Executive Board.
Another key body is the Porsche Sustainability
Council, which has been guiding the company
into a more sustainable future since 2016.
Here, external specialists from the fields
of business, science, politics and civil society.
advise the Executive Board and top man-
agement regarding the strategic focus of
sustainability. The Council members are
independent and not bound by instructions.
The Executive Board has given the Council
far-reaching rights to information and
consultation, as well as rights of initiative.
Since the beginning of the year under review,
this advisory body has consisted of Council
spokesperson Lucia Reisch and Council mem-
bers Sarah Jastram, Raffaela Rein, Adnan Amin,
Ortwin Renn and Klaus Töpfer. The advisory
body is also supported in its meetings with the
Porsche Executive Board by Nicola Leibinger-
Kammüller as an industry partner. She
contributes her many years of business
experience.
The Sustainability Council held two meetings
with the Porsche Executive Board in the year
under review. The key topics addressed in-
cluded decarbonisation, ESG management,
sustainable supply chains and human rights.
Council members additionally held regular
meetings with the Sustainability Council office
and with Porsche experts. In regular video-
conferences, members of the Council were
closely involved in further development of the
sustainability strategy and the deepening of
stakeholder dialogue.
2021 status
Porsche's sustainability
organisation is established
throughout the company.
• Global roll-out completed of risk
analysis on the topic of human rights
•Raising awareness among the
employees via various information
media as well as responsibilities
and interfaces with the compliance
management system and the Business
and Human Rights functions
Goal
Porsche has set itself the goal of
quantifiably establishing diversity
within the company by 2030 in terms
of mixed teams.
Performance assessment
A performance indicator is currently
under development.
Measures
Qualification and raising awareness
across all hierarchical and depart-
mental levels
•Networks and communities
⚫Diversity marketing
and communication
2021 status
7 Diversity, p. 108
Governance and transparency
Porsche intends to systematically embed
sustainability aspects in its corporate
management and work towards further
enhancing transparency and responsible
corporate governance.
Goal
Porsche has itself the goal of being rated
a leading automotive company in the
independent ISS ESG rating by 2030.
Performance assessment
Annual assessment of sustainability
achievements on the basis of the
ISS ESG rating.
Measures
• Integration of the topic of human rights
into the digital learning module
A transparent internal
structure with defined
responsibilities allows
material topics to be
handled consistently and
effectively.
An overview of sustainability organisation
Porsche Executive Board
STAKEHOLDER COMMUNICATIONS
AND DIALOGUE ✓
→ GRI 102-40, 102-42, 102-43, 102-44
Porsche's business activities touch on the
interests of many people around the world.
The company engages in proactive dialogue
with its stakeholders and continuously ex-
pands this dialogue. Mutual understanding
and acceptance can only be established
on the basis of the open and transparent
exchange of information and opinions.
Stakeholder management at Porsche takes
a 360-degree approach that aims to system-
atically record the expectations of each
stakeholder group. Their feedback is then
reflected upon and used in strategic planning.
The interests and perspectives of the various
stakeholders are used to identify and take
into account key social trends. These can
then be incorporated into the company's
decision-making. Vice versa, Porsche trans-
parently communicates what scope for
action the company sees regarding current
changes and which conditions and param-
eters apply.
Stakeholder management tools
An exchange that is beneficial for all sides
must be based on trust. This serves as the
foundations of any long-term relationship
between Porsche and its dialogue partners.
Trusting exchange with our stakeholders
must be geared towards the long term and
be nurtured on an ongoing basis. Porsche
believes it is important for people to talk to
one another, not about one another. The
company's approach seeks to understand
different positions by adopting different
perspectives, jointly overcome challenges
and foster long-term partnerships. It does
this through various media and dialogue
formats in all kinds of internal and external
communication channels.
The most important sources of information
for thought leaders, decision makers and
customers include the Porsche magazine
Christophorus, the online Newsroom with its
Twitter and Instagram channels, the web-
based TV channel 9:11 Magazine, the 9:11
Porsche podcasts and the Porsche website.
Porsche's employees also have many ways
of contributing their own thoughts and ideas
and of interacting directly with their line
managers. All internal communications are
published in digital and printed formats
through the Carrera media. The Carrera
Online web pages and the Carrera Magazine
provide the employees with information on
the latest developments in the area of sus-
tainability. Regular works and departmental
meetings, employee information events,
specifically themed weeks and digital
events also form part of the extensive array
of internal communications.
Events such as the Neighbourhood Dialogues
held at the company's sites enable Porsche
to establish personal contact with the stake-
holders. Since 2016, these have given, among
others, local residents the opportunity regu-
larly engage with Porsche experts and raise
specific issues. The coronavirus pandemic
and the legal requirements meant that the
events planned for the reporting year could
not take place as normal. Instead, Porsche
increasingly drew on virtual exchange with
the key figures and groups in order to obtain
direct feedback and input. If necessary,
stakeholders can contact the departments
responsible for sustainability directly using the
email address
sustainability@porsche.com.
Complaints management
Porsche logs its internal and external stake-
holders' questions, suggestions and concerns.
The centralised complaints management
function in the Politics and Society and
Environment and Construction Management
departments serves as the central contact
point regarding complaints and suggestions
for improvements at the Porsche sites.
This enables the company to respond more
quickly, if necessary.
Memberships and networks
As another element of its stakeholder dia-
logue, Porsche promotes economic, environ-
mental and social topics through its involve-
ment in networks, sustainability initiatives
and working groups. The sports car manu-
facturer is involved in a broad spectrum of
areas. For example, the company is a founding
member of the Bündnis für Luftreinhaltung
clean air alliance, a member of the Plattform
Urbane Mobilität and an active participant
in the industry dialogue on the German
National Action Plan for Business and Human
Rights (NAP). It has also been a member
of the German Environmental Management
Association (B.A.U.M.) since 2016. In 2017,
the company joined the European Business
Ethics Network Deutschland (DNWE) and
became a signatory to the state of Baden-
Württemberg's WIN Charter for sustainable
business, marking its commitment to entre-
preneurial responsibility. In 2019, Porsche
became the first automobile manufacturer
to join the Value Balancing Alliance, together
with the Volkswagen Group. In 2020, the
company also joined the Responsible Mica
Initiative (RMI). This cross-industry coali-
tion campaigns for transparency and
improved labour conditions in mica mining.
The company will be heavily involved in
the working groups of its existing networks
in 2022 too and is looking to join more new
sustainability networks.
VALUE BALANCING ALLIANCE
In November 2019, Porsche became the
first automobile manufacturer to join
the Value Balancing Alliance, together
with the Volkswagen Group. Its aim is to
develop a standardised way of measuring
and evaluating in money terms the impact
of companies' business activities on the
environment and society. The new method-
ology is being developed in collaboration
with the other member companies and is
supported among others by the OECD and
the European Commission. In addition to
Porsche and the Volkswagen Group, its core
members include BASF, BMW, Deutsche
Bank, Deutsche Post DHL, Michelin,
Mitsubishi Chemical, Novartis, Philip Morris
International, SAP and SK. With this meth-
odology, the value of a business is not
simply expressed in terms of the financial
value it creates, but also incorporates its
ecological and social value. Porsche is
seeking to make its activities in the area
of sustainability effective and incorporate
the topic into its decision-making pro-
cesses more comprehensively in the future.
In joining the initiative, Porsche is also in-
volved in piloting the methodology within
its own organisation. With support from
the Volkswagen Group, Porsche is assum-
ing a leading role across all of the Group's
brands as a core member of the Value
Balancing Alliance.
balancing
PORSCHE
Investors and
analysts
81
Sustainability management
Responsible overall for the
topic of sustainability
Politics and Society department
Manages sustainability communications
and stakeholder dialogue
Responsible for stakeholder management
Interface to the
Porsche Sustainability Council
Environment and Sustainability
Steering Group
Sets sustainability priorities
and strategic focus
Porsche intends to promote a corporate
culture in which everyone is welcome
and can apply their skills.
Environment and Sustainability
Steering Committee
Porsche
Sustainability Council
Provides input
Sustainability department
Interface to the Volkswagen Group's
sustainability management
Manages the sustainability strategy
and the sustainability bodies
Implements sustainability projects
Subject-specific
working groups
Develop and implement
concrete sustainability measures
and programmes
80
Consolidates measures across
all the departments and
devises the strategic content
for the areas of action
Diversity
Vision
7 Supply chain responsibility, p. 122
the company is promoting new shaping and
innovation opportunities - throughout the
company's value chain.
The sports car manufacturer continuously
evaluates the progress it is making in
all six areas of action in its Sustainability
Strategy 2030. The strategy pursued is
then continuously adapted. Porsche regularly
engages in active dialogue with its internal
and external stakeholders and with recog-
nised experts.
Porsche also ties the six strategy fields and
its corresponding activities in with the
Sustainable Development Goals (SDGs).
The United Nations' SDGs offer companies
guidance in bringing their targets and activ-
ities into line with sustainable development.
There are 17 global goals at the heart of
the 2030 Agenda. Their aim is to reconcile
economic progress with social justice and
environmental compatibility around the
world. The SDGs apply to this report too and
are tied in with Porsche's strategic focuses.
With ambitious targets, Porsche's sustain-
ability strategy benchmarks itself against
scientific findings and external expectations.
These provide the framework for effective
action. The company also draws on its
inherent values and the brand's aspiration
to be a bold and visionary pioneer of sus-
tainable mobility.
CO₂
Vision
Decarbonisation
Vision
Goal
Porsche has set itself the goal of being
balance-sheet CO2-neutral across the
entire value chain by 2030.
Performance assessment
Annual measurement of CO2
emissions in tons per vehicle using
the Decarbonisation Index (DKI).
Measures
• Development of future-oriented
drive concepts
Purchasing of green electricity
Use of sustainable materials
Definition of the DKI targets for
the model lines
2021 status
> Vehicle decarbonisation
and the stakeholders' expectations. With its
chosen strategy fields, Porsche is taking
global changes into account. Together with
its suppliers, employees and customers,
The company systematically aligns its engage-
ment with these areas of action. With its
Sustainability Strategy 2030, Porsche is
therefore assuming social responsibility,
bolstering sustainable and value-creating
growth and further reducing its environ-
mental footprint. At all times, the focus is
on the impacts of its business activities
Governance and transparency
Supply chain responsibility
SUSTAINABILITY MANAGEMENT
Strategy programme
SUSTAINABILITY STRATEGY
Porsche further developed its activities
in the area of sustainability in the year
under review. These activities are based on
the company's Strategy 2030. Social and
environmental changes at the global level
are prompting the company to examine
the entire value chain with the aim of con-
tinuously improving sustainability in all
areas of its business activities.
In its Sustainability
Strategy 2030, Porsche
has grouped the company's
key challenges under six
strategic areas of action.
The company systematically
aligns its engagement
with these areas of action.
With its strategy, Porsche
is assuming social
responsibility, bolstering
sustainable and value-
creating growth and further
reducing its environmental
footprint.
(decarbonisation programme), p. 94
Sustainability Strategy 2030
In its Sustainability Strategy 2030, Porsche
has grouped the company's key challenges
under six strategic areas of action. These are:
(+00
Decarbonisation
3
☑
Circular economy
Diversity
Partner to society
Companies are key players in society in
many ways. Their actions have far-reaching
economic, environmental and social effects.
More resources are consumed around the
world annually than can be naturally repro-
duced. The planet's population will likely grow
to over eight billion people by 2030. The
responsible use of natural resources is there-
fore becoming more and more relevant. At
the same time, global competition is becom-
ing more intense. And new challenges are
arising all the time, such as climate change,
political upheaval and the global consequences
of the coronavirus pandemic. The consumers
are generating momentum too with demand
which is changing more and more quickly.
There are also increasing expectations on the
part of various interest groups of an economy
which is oriented towards sustainability.
A key role in how these changes are responded
to is played by the automotive industry - and
therefore also by Porsche.
Vision
Porsche intends to make its products
and processes balance-sheet CO₂-
neutral across their entire life cycle.
Porsche intends to support people around
the world and actively empower them
through its social engagement.
Proportion of sustainable materials in
the vehicles.
Measures
Raising the proportion of sustainable
materials in vehicle and project targets.
2021 status
7 Circular economy, p. 93
Vision
Supply chain responsibility
Porsche intends to guarantee
compliance with environmental
and human rights standards in its
value chain.
Partner to society
Porsche has set itself the goal of
90 per cent of its purchasing volume
meeting its most stringent quality
standards by 2030.
Performance assessment
S-rating coverage: assessment category
for suppliers' good sustainability
achievements.
Measures
•Introduction of an Al tool to monitor
potential sustainability risks in the
supply chain
Introduction of a human rights
due diligence management system
•Review of identified high-risk raw
materials
Publication of a Responsible.
Raw Materials Report by the
Volkswagen Group
2021 status
Performance assessment
Porsche has set itself the goal of
significantly increasing the proportion
of the verifiable secondary materials
used in its vehicles by 2030.
Goal
Porsche intends to use sustainable
materials in its vehicles and close
resource cycles.
Goal
Goal
Porsche has set itself the goal of
achieving a quantifiable improvement
in people's circumstances through its
social projects by 2030.
Performance assessment
Measures
• Establishment of an internal fund
to support project ideas which
contribute to the strategic "Partner
to society" goals
Impact assessment of social projects:
establishment of lasting positive change in
people's circumstances at the local level.
• First Porsche Virtual Run
•Further development of the Porsche
hilft volunteering platform
2021 status
Partner to society, p. 109
3 Circular economy
• Projects to potentially improve the
living conditions of people involved in
the extraction of raw materials for
the automotive industry
Vision
The topic of mindfulness is in great demand.
In view of this, a podcast entitled "Brennen
statt Ausbrennen" (meaning "Fired up, not
burnt out") was created in the year under re-
view, based on the content of the "Promoting
self-management skills" training course. Com-
prising five episodes, the podcast addresses
various aspects of mindfulness, resilience and
work-life balance, and teaches practical exer-
cises for use in day-to-day work.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
115
EMPLOYEE DEVELOPMENT AND SOCIALLY
ETHICAL TRANSFORMATION
Many of the training and professional devel-
opment sessions were held virtually in 2020.
a team maintains or improves their own
achievement potential. Here too, virtual work-
shops and tricks were developed which allow
for self-assessment and which provide con-
crete tips regarding how to be more mindful
of oneself and others in day-to-day work.
Mindfulness and hybrid management
Working flexibly, be it in the office or from
home, calls for an array of options to be of-
fered to the employees and managers ac-
cordingly. The objective is to ensure that
"hybrid" collaboration within a team goes
smoothly and that the new ways of working
are given the best possible design. For ex-
ample, the simulation of practical examples in
the "Managing hybrid teams" training course
allowed decisions, the team's reaction to
these and their work results to be addressed
in an entertaining and fun way.
It is also important that every member of
Digital learning
Social
The significance of new content offerings
with regard to how the "new normal" is han-
dled therefore increased in the year under
review. Working and learning during the pan-
demic and the transformation advancements
necessitate key skills and new professional
abilities. These were jointly developed by HR
and the departments.
114
Porsche's high level of attractiveness as an
employer is demonstrated by the number of
applicants, which remains high - in 2021,
the Porsche Group received more than
130,000 applications in response to over
3,800 advertised vacancies. Once again dur-
ing the year under review, the sports car
manufacturer was ranked as a top employer
by students in verified employer rankings. In
the Universum Student Survey, Porsche was
again named the most attractive employer
for engineers in 2021.
Measuring employee satisfaction ✓
It is very important to Porsche that its em-
ployees are actively involved in processes
and that their opinions, views and sugges-
tions are all listened to. The company gauges
the satisfaction levels among its employees
with the mood barometer. This annual em-
ployee survey also determines the company's
attractiveness as an employer internally. The
sports car manufacturer is additionally inter-
ested in the employees' views regarding the
company's integrity and its collaboration
with the Volkswagen Group. The results of
the mood barometer are used to identify po-
tential areas for improvement and provide
managers with information on areas requir-
ing attention in their organisational units. In
fixed follow-up processes, the managers and
their employees jointly define suitable meas-
ures with the support of the team responsible
for the mood barometer, which has various
tools at its disposal. The aim is to secure the
long-term implementation of the derived
measures in the organisational units. More
than 16,000 Porsche employees partici-
pated in the 2021 mood barometer survey,
which corresponds to a participation rate
of 74 per cent. The mood index, one of the
mood barometer's primary metrics, came in
at 79.1 out of a possible 100 index points
in the year under review, thus confirming the
previous year's level.
THE MOOD INDEX CAME IN
AT 79.1 OUT OF 100 INDEX
POINTS.
tration, and IT/computer science). In the
weighted overall ranking comprising all
areas, Porsche was ranked second by the
target group of young professionals. In
the Universum Young Professionals Survey,
the company defended its previous year's
top spot, taking first place once again in the
area of engineering and knocking Google
off the top spot in economics and business
administration. And last, but not least,
Porsche was again voted the most attract-
ive employer in the automotive industry in
a study conducted among students and
future graduates by Automobilwoche and
the Institute of the Automotive Industry
(IfA). The company therefore reaped the
Automotive TopCareer Award again in
2021, as it did in 2020.
The company's top rankings in the previous
year among the target groups of engineers
and economists were likewise confirmed
once again. In the Trendence Institute's an-
nual student survey, Porsche improved its
scores across all the target groups (engi-
neering, economics and business adminis-
Do
| ||
MORE THAN 130,000
APPLICATIONS IN
RESPONSE TO
OVER 3,800
ADVERTISED
VACANCIES.
Further options range from flexible working
hours aligned to the employee's current
phase of life through to care leave to support
family members. Employees may also take
sabbaticals and have the option of working
part-time. Many employees decide to take
parental leave. Porsche then helps these in-
dividuals make a smooth return to work,
arranging further qualifications for them dur-
ing their absence that will simplify the pro-
cess of returning to work.
Porsche takes account of its employees' in-
dividual needs and promotes flexible working
options with regard to workplace and work-
ing hours, giving them a high degree of flexi-
bility regarding their personal circumstances.
This flexibility was further enhanced in 2021
with the amended works agreement regard-
ing mobile working, which allows up to 12 full
days of mobile working per calendar month.
Mobile working by the hour also remains an
option. An exceptional rule was applied in the
year under review due to the coronavirus
crisis, with the permitted time for working
hours being extended and with interns and
trainees being incorporated too. Porsche em-
ployees are free to decide where and, to a
certain extent, when they perform their work
if their role can be carried out remotely.
The podcast is made available centrally via
the Porsche podcast app, which is offered ex-
clusively to the employees. It serves as a cen-
tral platform for numerous internal podcasts
from various business divisions. The podcast
app therefore expands the array of digital ser-
vices by another important building block and
promotes needs-based learning which is flex-
ible in terms of time and location.
It is very important to
Porsche that its employees
are actively involved in
processes and that their
opinions, views and
suggestions are all listened
to. The company gauges
the satisfaction levels
among its employees with
the mood barometer. In
total, 74 per cent of the
workforce participated in
the survey.
BEING AN ATTRACTIVE EMPLOYER IS A CORE ASPECT OF PORSCHE'S HR STRATEGY
Overall, what's known as the Porsche learning
ecosystem was expanded by a large number
of innovative and user-centric tools and for-
mats in the year under review. For example,
110
the 360° Feedback app was used during the
Porsche Leadership Labs once again and was
further professionalised. Online simulations
were also used in the areas of change man-
agement and hybrid management. This in-
volved the potential of VR headsets to assist
with presentation training being evaluated. At
the heart of these activities is the goal of cre-
ating a unique learning experience which use-
fully integrates the formats, tools and
In summer, the children of employees can
attend a school holiday programme that runs
throughout the holidays. Through its family
service, Porsche offers extensive, free and
individually tailored advice and support on all
aspects of family life, in particular for parents-
to-be and in the area of care for the elderly.
Social
117
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Social
116
DIGITAL EXPANSION OF THE PORSCHE LEARNING ECOSYSTEM
The feedback form developed in 2020 as-
sesses all of Porsche's qualification measures.
It was implemented at the beginning of the
year under review. A new aspect of the form
is that it does not only record learning out-
come directly upon the conclusion of training -
it also records the employees' opinions 90
days later. An assessment can then be made
regarding how what they learned is being ap-
plied in their day-to-day work. The sports car
manufacturer also defined other performance
indicators that shed light on the contribution
made by the interdisciplinary qualification
portfolio. Designed to boost the effective-
ness of the measures, these are summarised
and clearly illustrated. The half-yearly evalu-
ation is made available both to those respon-
sible for the products and to management
representatives. The intention is to improve
the participants' satisfaction with the inter-
disciplinary qualification measures and con-
tinuously improve the processes.
Measuring effectiveness
The employees were selected at random
from among the entire workforce. Over
60 per cent of them participated. The results
offer a new angle on a career at Porsche.
They are used to derive measures on the
topic of HR development and to elaborate
development paths for what's known as
Porsche Workforce Transformation within
Porsche's Strategy 2030.
Porsche? The sports car manufacturer ob-
tained answers to these questions in a rep-
resentative employee survey conducted in
October 2021.
PORSCHE IS EVALUATING THE POTENTIAL OF VR HEADSETS FOR PRESENTATION TRAINING
How are the current development paths re-
ceived? What expectations do the employ-
ees have regarding their development at
Start of the new management programme
Porsche introduced a new management pro-
gramme in the year under review based on
the revised requirements for the assumption
of management functions. It is aimed at em-
ployees taking on a management function
for the first time. They are offered intensive
support in their new roles as disciplinary or
functional managers in the form of perfectly
tailored qualification measures. The pro-
gramme focuses on three key areas -
strengthening the management role faced
with the conflicting priorities of operational
versus innovative tasks, managing in-person,
hybrid and virtual teams, and moulding one's
own scope for action to create value.
participants and the trainers. The Learning
Campus inaugurated in Stuttgart-Zuffen-
hausen in autumn has likewise met with posi-
tive feedback. This new training space is
used for the qualification of employees and
caters to the increasing expectations of an
interactive approach to modern qualification.
The room configuration allows for flexible use
and also facilitates a hybrid training setting.
Gradual return to face-to-face teaching
After 2020 having been very much domin-
ated by virtualisation of the qualification
portfolio, an increasing number of face-to-
face training modules was offered in the
year under review. With the inauguration of
Schlossgut Harteneck as a new campus,
a new, innovative training site for manage-
ment qualifications was established. This
boasts a learner-centred environment where
no two rooms are alike. The unique design
and layout of the training space meets with
positive feedback across the board from the
is therefore an important element of what's
known as Porsche Workforce Transform-
ation, with which Porsche is seeking to
successfully develop and implement new
technologies and business fields. The port-
folio ranges from coding base camps and
hybrid training modules to "nanodegrees"
and certification courses given by recognised
specialists and universities. In the year under
review, up to 1,500 participants were assist-
ed in building up their professional skills in
the areas of software development, Al and
data, IT architecture, cloud computing, digital
security and agile work methods.
departmental qualification options that allow
employees to expand their digital skills. It
the transformation
advancements necessitate
key skills and new
professional abilities.
in the year under review.
Working and learning
during the pandemic and
The importance of new
online training increased
and has familiarised them with digital trans-
formation. In a variety of formats and offer-
ings, the digital world is made tangible and
the company's digitalisation strategy is com-
municated. To date, primarily beginners'
knowledge has been taught in the more
than 170 hours of mainly digital learning
opportunities. This year, however, the array
of professional training with a higher level
of specialisation was also significantly ex-
panded. The Porsche Digital Academy is nei-
ther an academic institution, nor a purely
online service. Rather, it sees itself as an um-
brella operation for all of Porsche's qualifica-
tion opportunities relating to digital skills. In
collaboration with internal and external ex-
perts, the Learning, Corporate Culture and
Change main department provides cross-
From Fit for Digit@l to the Digital Academy
The Fit for Digit@l knowledge initiative has
reached more than 5,000 employees
throughout the company in recent years
offerings, thereby supporting the employees
in self-managed, social and also trainer-
based learning.
Survey in the context of Strategy 2030
Porsche's success is founded on the perform-
ance of its employees, who apply their skills
and knowledge to the company. For this to be
the case, it is important that needs-based
development opportunities continue to be
offered in the future too.
Porsche strives to ensure that its staff can
achieve a work-life balance. Employees receive
support from a wide variety of different meas-
ures and options. For example, local cooper-
ation partners ensure that regular childcare
places are available in nurseries close to the
company's sites. Furthermore, in emergencies,
additional childcare places are available at day
care centres in Stuttgart. Parents can also
take their children to work for a few hours.
A digital placement platform lists organisa-
tions and associations that need the sup-
port of volunteers. Individuals and teams,
be they Porsche newcomers or retirees, can
then quickly and straightforwardly see
where help is needed. The individual pro-
jects and organisations are aligned with the
Porsche strategy and in particular with the
sustainability aspects of engagement and
empowerment. The employees frequently
make use of this service, with hundreds of
hours of voluntary commitment having
already been accrued. Trees have been
planted, reading evenings have been organ-
ised at facilities for the disabled, and dis-
advantaged youths have been prepared for
embarking on a career.
Wolfsburg and Heilbronn. With this special
engagement, Porsche secures talented young
individuals to whom it is especially important
that their work has more meaning than merely
financial incentive.
The Porsche drive strategy is based on
a technology triumvirate: emotive combus-
tion, powerful hybrids and high-perform-
ance e-mobility. As such, Porsche reflects
the demands and needs of the customers,
the environment and the policymakers.
This triumvirate is complemented by the
use of new technologies available in the
market such as eFuels.
Emotive combustion
ALTERNATIVE DRIVE SYSTEMS
AT THE LEIPZIG SITE
UNIQUE GRAZING CONCEPT
100
in the project Naturnahes Firmengelände are
in the pipeline. In this way, biodiversity and
habitat variety will continue to be promoted
at the Weissach site.
The company is also committed to protecting
biodiversity around the Porsche Development
Centre in Weissach. A guide was developed
to this end together with experts in the fields
of landscape planning and species conserva-
tion. This gives concrete recommendations
for future planting and the creation of green
spaces. The aim of the transformations is to
create a wildlife corridor leading to the local
natural structures and species outside the
development centre. Special attention was
paid here to especially protected species of
wild bee. To improve their conditions of exist-
ence, wild bee pastures were created in the
green spaces along specific park areas and
the southern approach road. Other measures
Porsche Leipzig's grazing concept is unique
in the automotive industry. In addition to
honey bees, the sports car manufacturer also
introduced Exmoor ponies and wild oxen to
the off-road site in 2002. The 132-hectare
natural space is also home to Finnsheep and
numerous wild animals.
The main plant in Stuttgart-Zuffenhausen is
the second company site to get its own bee
colonies since 2017, some three million
honey bees have occupied the off-road site at
the Leipzig plant which has been returned to
nature. The lives of the honey bees are also
the topic of the Porsche Safari environmental
education programme, which is organised
in cooperation with Auwaldstation Leipzig.
Between March and October, children,
school classes and families can take a tour
of the Porsche Leipzig off-road site and
discover everything there is to know about
its flora and fauna.
orchard located within the grounds in 2020.
Porsche introduced a further five colonies
there in the year under review. In addition,
another bee site was established in Zuffen-
hausen. There are now 10 new bee colonies
established at the edge of the woods be-
tween the central workshops and the former
Bosch grounds. In spite of the tricky weather
conditions, the company harvested the site's
first forest honey in the year under review.
To conserve nature and species at the
Stuttgart-Zuffenhausen site, the company
therefore introduced 13 bee colonies,
each with some 50,000 bees, to a meadow
AROUND
50,000 BEES.
EACH WITH
13 BEE COLONIES,
THE STUTTGART-ZUFFENHAUSEN
SITE IS HOME TO
Sustainable concept for protection of honey bees
Germany's bee population is considered to
be at risk. More than half of the 560 native
types of bee are in danger of dying out and
more than 50 per cent of the wild bee types
are on the Red List of Threatened Species
(as at 2015). In Baden-Württemberg, it is
45 per cent of the 481 types of wild bee found
there. However, wild bees are indispensable
in the ecosystem as the primary pollinators of
many wild herbs and crops. Many species are
very constrained to specific flowering plants
as their source of pollen and nectar, and re-
quire special nesting places. With their polli-
nation function, wild bees have a significant
influence on the ecosystem and are therefore
classified as a keystone species. The loss of
such species can have serious consequences
for the entire ecosystem.
Drive strategy based on three pillars
The company will simultaneously offer ve-
hicles with optimised petrol engines, power-
ful hybrid drives and all-electric sports cars.
The plug-in hybrids in the Panamera and
Cayenne model lines will continue to be
designed with high performance in mind,
with greater electric ranges of more than
80 kilometres. Going forward, very sporty
hybridisation will be possible in the case
of the iconic 911 sports car too. This has
already been seen in motorsport.
Zuffenhausen near-natural company grounds
In summer 2021, an area of 2,000 square
metres was turned into recreational space
for the employees and the neighbourhood
as part of the project Naturnahes Firmen-
gelände. The cultivated pastures and native
plants also serve as a habitat for insects.
Porsche has earmarked around 15 billion
euros in the electrification, digitalisation
and sustainable production of its vehicles
up to 2025. The company is therefore sys-
tematically expanding its range of electro-
mobility offerings. Fifty per cent of all newly
sold cars are to be electrified by 2025, i.e.
be all-electric or plug-in hybrids. An electric
vehicle causes fewer CO2 emissions than a
comparable vehicle with an internal com-
bustion engine. As renewable energies can
be used during an electric vehicle's service
life, one of the biggest levers for reducing
the CO₂ footprint can be found in this area.
Porsche is accordingly looking to use sus-
tainable energy sources such as wind and
solar power.
Based on the advantages of e-mobility, Porsche
has decided to adopt a systematic electrifica-
tion strategy. With this path it has chosen, the
company is seeking to establish itself as a
technology leader. To make the breakthrough,
e-mobility needs an accessible, available
charging infrastructure that meets demand and
provides a customer-friendly charging process.
Porsche is pursuing a holistic approach and
continues to work on refining charging technolo-
gies and developing the charging infrastructure.
The aim is for new products and services to
turn charging into a personal customer experi-
ence that is fast and attractive.
102
In addition, Porsche voluntarily announced
that it would produce software updates
for Euro 5 3.0-litre V6 diesel Cayenne and
Panamera models. The KBA approved this
software update in January 2020. The ser-
vice campaign was published immediately in
the market and made available to customers
as a free software update. Currently around
62 per cent of the vehicles registered in
Germany have been updated. The software
update will also be made available in other
EU countries shortly.
around 98 per cent of the affected vehicles.
Approval was granted by the KBA for soft-
ware updates in respect of the Cayenne
4.2-litre V8 diesel (Euro 5 and Euro 6) in
January 2020 (Euro 5) and July 2020 (Euro 6).
The owners of the vehicles have been con-
tacted by the responsible Porsche partners
and the recall campaign has been launched.
So far, some 88 per cent of the Cayenne
4.2-litre V8 diesel (Euro 5) and Cayenne
4.2-litre V8 diesel (Euro 6) models in Germany
have been updated.
THE AIM IS FOR HALF OF ALL NEW PORSCHE VEHICLES TO BE ELECTRIFIED BY 2025
In addition, the KBA issued Porsche with
recall notices for the Cayenne 4.2-litre V8
diesel (Euro 5 and Euro 6) and Panamera
4.0-litre V8 diesel (Euro 6). Porsche's pro-
posed software update for the Panamera
4.0-litre V8 diesel (Euro 6) was approved by
the KBA in August 2019. The recall cam-
paign started in November 2019 and the
software update has already been applied to
1 August 2018. Porsche has been recalling
these vehicles to workshops for a free soft-
ware update since October 2018. Currently
more than 99 per cent of the vehicles regis-
tered in Germany have been updated.
In July 2018, the KBA ordered cars of the type
Macan 3.0-litre V6 diesel (Euro 6) to undergo
a similar update. The proposed Porsche soft-
ware update received official approval on
posed by Porsche. Porsche has since re-
called the vehicles concerned for a free
software update. More than 99 per cent of
the affected vehicles in Germany have now
been updated.
As of February 2018, Porsche no longer in-
cludes any diesel models in its portfolio.
Together with other parts of the Group, the
company is also actively committed to
bringing down nitrogen oxide levels in
German cities. Before Porsche's decision
to stop selling diesel-powered vehicles,
Germany's Federal Motor Transport
Authority, the Kraftfahrtbundesamt (KBA),
had ordered a recall measure to update the
software in certain Porsche diesel vehicles
owing to irregularities in the engine man-
agement software. The relevant recall for all
affected Porsche diesel cars was launched.
In 2017, Porsche Cayenne 3.0-litre V6
diesel cars in the Euro 6 emissions class
were recalled in Germany due to individual
technical characteristics of the engine
management software. In mid-October 2017,
the KBA approved the software update pro-
Work-life balance
costs. Furthermore, additional renewable
energy is generated which does not compete
with other industrial needs.
In collaboration with Siemens Energy and
a number of international businesses, Porsche
developed a pilot project in Chile during the
reporting year. The aim of the project is to
develop the world's first integrated, commer-
cial, large-scale plant to manufacture syn-
thetic, climate-neutral fuels. The plant is
being constructed according to the principles
of environmental and social compatibility.
The pilot phase will involve the production of
some 130,000 litres of eFuels in 2022. The
capacity is then to be increased in two stages
to around 55 million litres in 2024. By 2026,
an additional 550 million litres a year are
planned. Porsche is the main buyer of the
green fuel manufactured by the pilot plant
using electric power generated by the wind.
The project site in Chile boasts very good
parameters in comparison to elsewhere in
the world, with consistent and strong winds.
This results in very low power generation
costs and therefore also low production
With eFuels, the traditional Porsche models
could potentially be run virtually CO2-neu-
trally too. Together with partners in science
and industry, the company is working to
develop industrial production of these alter-
native fuels. Porsche is seeking to develop
the best locations around the world for the
use of renewable energy sources in order
to guarantee that these new energy carriers
will be competitive. To further improve the
production processes, Porsche is involved in,
for example, the "eFuels - Kraftstoffe neu
denken" project in Baden-Württemberg,
which was established as part of the
Baden-Württemberg Strategiedialog
Automobilwirtschaft initiated by the
Baden-Württemberg state government.
High-performance e-mobility
Porsche is prioritising its electrification strat-
egy. The company is additionally pursuing
avenues to reduce the CO2 emissions of ve-
hicles with petrol engines and hybrid drives in
certain areas by means of efficiency meas-
ures. Here, Porsche is focusing on what are
known as eFuels. Porsche classifies eFuels as
synthetic, liquid fuels. These are made of hydro-
gen obtained exclusively using renewable
energy and non-fossil carbon dioxide extract-
ed from, for example, the ambient air.
Alternative fuels
A network of 350 kW quick-charging stations
is being expanded and expedited throughout
Europe with the joint venture IONITY. The
plan is to have 400 charging stations up and
running. At home, Porsche customers can
top up the Taycan's battery overnight using
a Porsche-developed wall box providing up to
22 kilowatts. And on the road, the Porsche
Charging Service already provides users with
access to more than 100,000 charging
points throughout Europe with the possibility
of central billing.
Powerful hybrids
use of environmental principles and near-
natural concepts. On the one hand, Porsche
will take into account the environmental
aspect and the contribution made to bio-
diversity. On the other hand, the maintenance
work required has a role to play too. For
example, highly diverse wild flower meadows
are cut just one to three times a year and
therefore require significantly less mainten-
ance than grass lawns. Other advantages of
near-natural company grounds include the
employees' improved well-being. This is
achieved on the basis of an attractive work
environment and higher building certification
ratings awarded by the German Sustainable
Building Council (DGNB).
53 parameters being logged per site in
25 clusters. For example, the biodiversity
rating in the area of surface management
can be improved among other things by ex-
panding flowered areas and by increasing
the number of species in the flowered areas.
A site's biodiversity index is calculated as
somewhere between 0 and 100 per cent.
Porsche's Stuttgart-Zuffenhausen site is cur-
rently at 44 per cent, meaning the target for
the year was achieved. As part of the zero-
impact factory concept, Porsche will seek to
get all of its sites to 100 per cent by 2030.
In the future, the company will increase its
Five areas - surface management, internal
impact, external impact, local factors and
external factors are evaluated. This involves
SINCE 2014, THE COMPANY
HAS REDUCED THE WATER
CONSUMPTION PER
VEHICLE OF ITS OWN
PRODUCTION ACTIVITIES
BY MORE THAN
16 PER CENT.
Water and effluents
Water is becoming increasingly scarce as
a resource. Porsche therefore uses it pru-
dently. It aims to reduce water consumption
and the production of effluents, thereby less-
ening the environmental impact of drinking
water and groundwater shortages. Since
2014, the company has reduced the water
consumption per vehicle produced in its own
production activities by more than 16 per
cent. None of the Porsche sites are located in
water stress areas.
Porsche will continue to systematically col-
lect waste which cannot be avoided separ-
ately. Wherever waste is produced, there are
bins which are labelled according to the dif-
ferent types of waste. The valuable materials
in the waste can then be used in the sub-
sequent waste disposal process. In addition,
when looking to award waste contracts,
Porsche gives preference to disposal facili-
ties that offer a materials recycling process.
This is continuously monitored by Porsche's
waste management officers, with improve-
ment potential being identified and tracked.
The levels of waste can be tracked by means
of digital waste logging. This helps with
the tracking of target achievement and
compliance with the statutory documenta-
tion obligations.
Porsche's waste management system is
based on a closed-loop system. Waste is
to be avoided at the zero-impact factory
and materials are to be increasingly recycled,
thereby conserving natural resources.
Waste management
In addition to reducing costs, responsible use
of natural resources has a positive effect on
the environment. Porsche therefore continu-
ously optimises its processes. For example,
the company modified the technical work-
flows at its paint shop, thereby further redu-
cing the use of chemicals in body pretreat-
ment and the consumption of water in its
wastewater treatment. Porsche also reduced
the use of structural adhesives in assembly
and the body shop by shortening the set-up
times, which also reduced the volume of
waste. Information technology was used to
identify and exploit potential for the needs-
based shutdown of drives and ventilation
systems. This saves more than 400,000 kWh
of electricity at the Stuttgart-Zuffenhausen
site a year.
Resource efficiency
with the ISO 14001 environmental standard
and, at the Stuttgart-Zuffenhausen site,
in accordance with EMAS. In addition, energy
management systems in accordance with
ISO 50001 have been implemented at the
Stuttgart-Zuffenhausen, Weissach, Leipzig,
Sachsenheim and Schwarzenberg sites.
Employee participation in these efforts is
essential. The employees' awareness regard-
ing this topic is raised by means of various
activities such as online training. More than
300 individual measures have been imple-
mented since 2015.
Porsche has established an audited environ-
mental management system which is certi-
fied throughout the company in accordance
Porsche is systematically working on
achieving the targets set as part of its strat-
egy. Important elements here are the reduc-
tion targets regarding energy, CO 2, waste,
water and VOC per vehicle, which are to be
reduced by 45 per cent between 2014 and
2025. Using water as efficiently as possible
on the basis of circulation systems and
multiple reuse and the careful handling of
contaminated production wastewater are
important aspects in this regard. Avoiding
waste, harnessing low-waste technologies
and deploying sustainable disposal solutions
are key elements of Porsche's waste man-
agement concept. The company's Environ-
mental protection resource regulation
serves as an internal guideline and is also
binding on suppliers.
PURSUING THE
VISION OF A
ZERO-IMPACT
FACTORY.
WITH ITS STRATEGY 2030,
PORSCHE IS
Vision: environmentally neutral production
Porsche is striving to achieve environmental-
ly neutral production. With its Strategy
2030, the sports car manufacturer is on its
way to achieving its goal of a zero-impact
factory. This target vision is based on 11
specific areas of action including resource,
material and energy efficiency, and efficient
water usage. Other categories include tech-
nology and processes as well as logistics,
which likewise influence the company's con-
sumption of resources.
Natural resources are finite. But humankind
is consuming significantly more resources
than the earth is able to produce. Industrial
enterprises undertake to do business more
sustainably and reduce their raw material
consumption. In this regard, Porsche is pur-
suing the vision of a zero-impact factory, in
other words production that has no negative
impact on the environment. The company
has also made a commitment to the 1.5-de-
gree target of the Paris Agreement.
IN PRODUCTION ✓
RESOURCES AND RECYCLING
CONSUMPTION OF
Porsche's process facilities such as vehicle
leak testing equipment, washing equipment
and parts washing equipment operate largely
in a closed-loop system. The paint shops
conserve water by using cascade rinsing to
recycle water, while bath treatment helps to
extend life in pretreatment and in dip coat-
ing. The wastewater generated in production
is pretreated in approved systems in order to
remove or reduce pollutants. The effluents
are regularly analysed and monitored in ac-
cordance with the requirements of the au-
thorities. Porsche has installed water-saving
fittings in its bathrooms.
All the water pollutants of all hazard classes
produced at Porsche are transported,
filled into containers, stored or reused on
site. The company has reduced the risk of
production interruptions when handling
water-polluting substances by raising aware-
ness among the employees, fitting technical
protective devices to the production systems
and installing binding agent stations at out-
door locations.
Green Logistics strategy
Throughout the value chain, the company's
logistics operations use the available CO₂ re-
duction potential, thereby making an active
contribution to the Paris Agreement as well
as combating global warming. Sustainability
is therefore a top priority for Porsche's logis-
tics operations. The sports car manufacturer
identified numerous measures and potential
options as part of the Green Logistics strat-
egy and then implemented them.
CENT BY 2030.
ACHIEVE 100 PER
THE SITES TO
AIM IS FOR ALL
44 PER CENT. THE
IS CURRENTLY AT
THE BIODIVERSITY INDEX
RATING FOR THE STUTTGART-
ZUFFENHAUSEN SITE
In order to better evaluate and manage bio-
diversity at its production sites, Porsche uses
an innovative biodiversity tool developed
by the Volkswagen Group. Since 2021,
Porsche has been one of the first brands in
the Volkswagen Group to use defined
biodiversity criteria to study its Stuttgart-
Zuffenhausen site.
Environment
Evaluating and managing biodiversity
Porsche's engagement here focuses on its
sites and their immediate environment. The
company's objective is to protect the occu-
pied and unoccupied natural landscape and
to minimise its own environmental footprint.
Porsche wishes to maintain biodiversity, allow
nature to operate and find its own balance and
secure the future capacity of nature and the
landscape to recover. The company therefore
pays particular attention to these aspects.
PROTECTION OF BIODIVERSITY
99
Environment
98
The Volkswagen Group is one of the first
automobile manufacturers in the world to use
low-emission LNG vessels to ship finished
vehicles, on its route from Emden to North
America. This achieves substantial reductions
in emissions compared with traditional
methods up to 25 per cent for CO₂, up to
30 per cent for nitrogen oxides, up to 60 per
cent for particulates and up to 100 per cent
for sulphur oxides. There are currently two
ships being used to transport Group vehicles.
These can carry up to 4,800 vehicles.
THE USE OF EUROTRAILERS AT
THE STUTTGART-ZUFFENHAUSEN
SITE ELIMINATES MORE THAN
3,500 TRIPS EACH YEAR AND
THEREFORE AROUND 10 PER CENT
OF CO2 EMISSIONS.
Eurotrailers are used at the Stuttgart-Zuffen-
hausen site, thus eliminating more than
3,500 trips each year and therefore around
10 per cent of CO2 emissions. Porsche uses
LHVs for deliveries of materials (inbound
logistics) and for finished vehicle transporta-
tion (outbound logistics). These can hold
eight vehicles rather than the usual average
of six or seven, irrespective of how they are
loaded. This allows up to 2,000 HGV trips to
be eliminated a year. The finished vehicles
are transported from the loading stations in
Kornwestheim and Leipzig to the ports of
Emden and Bremerhaven. All of this rail
transportation has used renewable green
electricity since 2018.
Various sustainable drive technologies were
in use in Porsche's logistics transportation
in the year under review including natural
gas HGVs, one hybrid HGV and one all-elec-
tric HGV. The range of LNG HGVs is 600
to 800 kilometres, so they can therefore be
used for long-range trips.
As part of the ecosystem, biodiversity is vital
for human life. Protecting biodiversity there-
fore goes much further than mere nature
conservation. It is one of the greatest global
tasks of the modern age, alongside climate
change. Porsche recognises this and is ac-
tively committed to preserving biodiversity
at its sites.
Porsche is already increasingly taking envir-
onmental aspects into account in its advance
development. For example, research is being
carried out into the use of sustainable raw
materials and recycled materials for interior
upholstery and support components or when
awarding projects.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
PORSCHE DEVELOPS INNOVATIVE PRODUCTS AND SERVICES FOR URBAN MOBILITY
The aim is to conserve the
environment, guarantee good
labour and living conditions
and boost social cohesion.
its own sites and to its direct
suppliers and business partners.
company. This applies both to
Porsche uses projects to
campaign for people whose
social environment is directly
or indirectly related to the
109
PAVE - VOCATIONAL TRAINING IN TECHNICAL PROFESSIONS FOR DISADVANTAGED YOUNG ADULTS
Social
108
PAVE
Porsche delivers on this target with
its social engagement. As a partner to
society, Porsche has a lasting effect
within communities and proactively con-
tributes to the strengthening of global
partnerships. The company enters into
strategic partnerships with other organ-
isations itself, tackling tasks for groups
within society in a targeted manner.
Porsche gauges the impact of these
projects with the aid of recognised im-
pact assessment methods. In all of its
strategic flagship projects, Porsche
seeks to establish a demonstrable and
quantifiable impact assessment, there-
by making it possible to continuously
improve its engagement. With these
measures, Porsche contributes to the
strengthening of global partnerships
and to SDG 17 being achieved.
To boost sustainable development at
the global level, the United Nations
set the target of promoting effective
public, public-private and civil society
partnerships.
PARTNERSHIPS FOR THE GOALS
17
The PAVE programme is a strategic
initiative launched by Porsche. The
impact of this international vocational
training programme for young people
is assessed too.
FOR PORSCHE,
EDUCATION IS
THE KEY TO
SUSTAINABLE
DEVELOPMENT.
For Porsche, education is the key to sus-
tainable development. All of the activities
within the "Partner to society" strategy
field are therefore run under the umbrella
of empowerment and education.
QUALITY EDUCATION
Sustainability Festival
4
"Shaping the future together" was the motto
ity", "Diversity", "Partner to society" and
"Circular economy". Internal and external
experts gave presentations. The live pro-
gramme, which changed daily, was comple-
mented by many other formats held on an
interactive platform. For example, various
quizzes and an escape game served as points
of entry to the topic of sustainability. Suitable
audio accompaniment came in the form of
PORSCHE ALSO OFFERS TRAINING AT INTERNATIONAL SITES IN ACCORDANCE WITH EUROPEAN STANDARDS
FESTO
In the area of transparency and workplace
standards, Porsche was part of a pilot pro-
ject which kick-started traceability using
blockchain technology. Together with the
Responsible Mica Initiative and other repre-
sentatives, Porsche also gave a presentation
to the OECD Forum on the topic of the
responsible procurement of mica, thereby
raising people's awareness of this issue.
Remarkable success was achieved in the
area of community empowerment in spite
of the coronavirus crisis. More than 3,000
households were provided with hygiene
items and food during the pandemic. In total,
some 11,000 people were reached through
the local projects.
place Standards and Community Empower-
ment, and on the strategy review task force.
The initiative was founded in Paris in 2017.
In 2021, the initiative published the Global
Mica Standard as a global workplace standard.
It promotes safety and fair labour conditions
and wages at the processing companies.
Companies that join the Responsible Mica
Initiative commit to introducing and imple-
menting these standards. The initiative is
supported by a range of representatives from
the paint, pigment, textile, plastics and
cosmetics industries. In the year under re-
view, Porsche was proactively represented
on the initiative's Board of Directors, in
the programmes Transparency and Work-
Mica is used as a raw material in many indus-
trial and cosmetic products. Porsche pro-
cesses mica too and is therefore involved in
the Responsible Mica Initiative.
Responsible Mica Initiative
PORSCHE IS INVOLVED IN THE RESPONSIBLE MICA INITIATIVE
Voluntary engagement is an integral part of
Porsche's cultural self-image. The platform
therefore continues to be developed and the
array of possible assignments expanded.
With Porsche hilft, the company is focusing
more than ever before on people - each
and every one of us can make an important
contribution to society and have a lasting
positive influence on it.
111
Porsche broadened its support in view of
the global consequences of the coronavirus
pandemic. It is in this context that the
Porsche hilft initiative was established last
year. This complements the company's
extensive financial aid with the placement
of voluntary helpers.
Porsche hilft
Porsche and Michelin are campaigning for
the sustainable extraction of natural rubber.
With the project CASCADE (Committed
Actions for Smallholders Capacity Develop-
ment), the sports car manufacturer and the
tyre manufacturer are championing greater
transparency and better labour conditions
during extraction of this raw material. With
the initiative, the partners are supporting
numerous smallholders involved in rubber
extraction in Sumatra, Indonesia. Training and
education in production practices, biodiver-
sity and occupational health and safety aim
to lastingly improve the smallholders' circum-
stances and economic situations. Indonesia is
one of the world's primary rubber producers.
Porsche and Michelin identified potential
supply chain sustainability risks related to
rubber extraction on the basis of analyses,
conducted among other things with a spe-
cially developed app, and talks held locally.
The initiative is training more than 1,000
smallholders to make their production meth-
ods more environmentally friendly and more
efficient. Porsche and Michelin are jointly in-
vesting some one million euros in the project
which is initially set to run until 2024.
CASCADE
Porsche Aftersales Vocational Education
The Porsche Aftersales Vocational Education
(PAVE) programme has been training highly
qualified employees in technical professions
for more than 10 years. They are trained at
international sites in accordance with Euro-
pean standards. The employees are then
appointed to the dealer organisations of
Porsche and other Volkswagen Group brands
around the world. Both the trainees and the
Group benefit from PAVE. For example, it
affords predominantly disadvantaged young
adults access to sound, first-class vocational
training. The dealer organisations are pro-
vided with highly qualified employees. And
thanks to long-term, strategic school part-
nerships, vocational training skills are em-
bedded locally. PAVE therefore has a lasting,
effective impact. At the same time, changes
in vocational training needs are responded
to flexibly and in advance. Promising future
prospects and development opportunities
are created for the programme graduates.
These lead not only to greater self-deter-
mination for the individuals, but also to so-
cial improvements.
a playlist specially compiled for the festival.
The employees were encouraged to become
Porsche sustainability ambassadors. The
festival communicated concrete ideas re-
garding how each and every employee could
contribute to a liveable future. The project
serves as a role model, demonstrating that
sustainability remains a strategic priority for
the company's future even during the corona-
virus pandemic. It is therefore important that
all the employees be informed about and
made aware of sustainability issues. We can
only shape the future together.
of Porsche's first Sustainability Festival held
for all the employees. Over five days, those
responsible presented the strategy fields
"Decarbonisation", "Supply chain responsibil-
Back in 2020, Porsche created a core team
comprising representatives of all the relevant
organisational units which promotes social
engagement projects. This body meets
on a monthly basis. The aim is to jointly
determine and implement the strategy and
to network the departments to this end.
The core team set up a company fund in
the year under review with which project
ideas from throughout the company can be
financially supported. In the same year, the
fund was used among other things to help
further develop the Porsche hilft programme
as a volunteering platform.
In the year under review, Porsche estab-
lished long-term impact assessment for all
of its strategic flagship projects. With its ac-
tivities in the "Partner to society" strategy
field, the company aims to achieve a high
reach and have a major effect. Determining
the reach makes it easier to understand the
scale of different projects. Specifically, the
sports car manufacturer records the added
value that Porsche projects generate for so-
ciety and whether the measures went far
enough to promote people in the medium
to long term.
In all of its strategic projects, Porsche seeks
to establish demonstrable and quantifiable
success monitoring. The sports car manufac-
turer wishes to use targeted measures to im-
prove people's awareness and skills, enabling
them to apply what they have learned in day-
to-day practice. Porsche also maintains con-
tact with the participants after completion of
the project. In this way, the company deter-
mines whether a project is having a lasting
positive influence on their lives and how their
life situations have changed.
As part of the expansion of sustainability
and alternative forms of mobility, Porsche is
promoting the electrification of its motor-
ised site traffic. The internal charging infra-
structure is being extended and powered by
certified green electricity and new electric
vehicles are being added to the fleet of
company and leased vehicles all the time. In
addition to the infrastructure, other man-
agement measures and complementary ser-
vices were realised in the year under review.
The impact of the projects on the targets
set is gauged on the basis of employee
surveys and traffic flow analyses. These
show that the total volume of traffic con-
tinues to improve. There has also been a
positive change in the modal split, i.e. the
distribution of traffic across a range of
transport options.
Due to how the pandemic has developed,
other measures to expand mobility services
are in the pipeline. In addition to a car-
sharing/commuting app being reintro-
duced, these include the expansion of bike
services such as the development of bike
service points.
To make the transport options even more
flexible, a digital, static parking guidance
and information system was installed in the
year under review and a company-wide
mobility dashboard was established. Here,
the employees are notified of available park-
ing spaces and traffic volumes in real time.
The company makes local public transport
services and Porsche shuttle services avail-
able at the sites. Porsche is also implementing
a pilot project at its Stuttgart-Zuffenhausen
site. Business divisions with greater mobility
needs will be able to use e-bikes for business
purposes in the future.
PORSCHE IS MAKING ITS
FLEET OF COMPANY AND
LEASED CARS ELECTRIC
AND IS EXPANDING
THE INTERNAL
CHARGING
INFRASTRUCTURE.
Managing mobility at the sites
Another priority is the expansion of a sus-
tainable range of mobility options for the
employees at Porsche sites. The aim of com-
pany mobility management is to make the
employees' commutes and business travel
more sustainable. The company has been
systematically realising various measures for
this since 2015. For example, employees re-
ceive a monthly subsidy for a local transport
season ticket targeting commuters as well
as for a Deutsche Bahn Jobticket. In addition,
travellers on the S-Bahn light rail link be-
tween the company's Weilimdorf and Zuffen-
hausen sites in Stuttgart can present their
Porsche works ID card in lieu of a travel ticket
when on company business. Frequent shuttle
buses run back and forth between the sites
for all other work trips in order to reduce the
amount of individual traffic. Porsche also in-
troduced a company cycling scheme back in
2019, offering the employees attractive sub-
sidised bike purchase options.
Porsche uses a number of tools for fine ad-
justment to continuously optimise the exist-
ing and new mobility services. These include
offsetting the local CO2 emissions of the
Porsche Drive fleet with the Porsche Impact
offsetting service and making increasing use
of digital processes.
Agile, interdisciplinary teams develop con-
cepts that are focused primarily on new cus-
tomer requirements and implement these
in a targeted manner. Success is guaranteed
on the basis of the intensive collaboration
of the company's different departments, an
open information policy, early piloting in
various markets and prompt stakeholder in-
volvement. Synergies within the Group are
systematically exploited in the development
and implementation of services.
To keep pace with the changing require-
ments, responsibility for mobility services
was pooled under the auspices of Porsche
Financial Services. The mobility offerings are
developed and scaled globally in close collab-
oration with Porsche AG, the importers, the
subsidiaries of Porsche Financial Services
and other internal and external partners. The
products offered are to be as efficient as pos-
sible so as to afford the customers a premium
user experience. The development of digital
solutions in close cooperation with Porsche
Digital GmbH is therefore a top priority.
Targeted collaboration
Electrification of the Porsche fleet therefore
also has an important part to play in the
development of mobility products. All the
services offered under the Porsche Drive
umbrella brand are a response to changes in
the customers' wishes. They reconcile flex-
ible, digital and personalised use with elec-
tric vehicles. Flexible solutions such as
Porsche Drive Flex, Porsche Drive Subscrip-
tion and Porsche Drive Rental are designed
to make it even easier for the customers to
get into electromobility. They allow custom-
ers to experience electric driving for an ex-
tended period without having to immediately
commit to something. Porsche is therefore
closely linking electromobility and mobility.
In the Porsche Drive Flex pilot project,
customers can choose from among various
vehicles within their subscription and define
their choice of vehicle via the app. The
Taycan is also available under Porsche Drive
Subscription, which closes the gap between
short-term rental (up to 28 days) and trad-
itional leasing (from 12 months). The Taycan
model series was offered with special
conditions to generate added incentive.
Porsche is developing innovative products
and services as an expression of flexible
mobility which is in keeping with the needs
of the times. The aim is to make personal
mobility sustainable and to make smart cities
a reality. It is a question among other things
of demand-oriented car usage options
(for example, flexible usage models and pre-
mium rental) and seamless connection to
other forms of transport.
Measures that answer existing questions,
including regarding congestion, CO₂ and
noise emissions, lost time and parking space
scarcity, are being prioritised accordingly.
Close collaboration between city councils
and the providers of new mobility solutions
is therefore key.
ON SERVICES THAT
WILL MAKE URBAN
MOBILITY MORE
FLEXIBLE AND MORE
CONVENIENT.
PORSCHE IS WORKING
Personal mobility in the smart city
Mobility today means so much more than
simply moving from A to B. Owning a car in an
urban environment is raising more and more
questions. Porsche is therefore also working
on services that will make urban mobility
more flexible and more convenient. In cities,
mobility is gaining importance as one of the
most relevant areas in which quality of life can
be improved, making urban planners import-
ant stakeholders in the automotive industry.
Scarcity of resources and climate change
are intensifying innovation and market dy-
namics. Vehicles and their usage are adapted
to these. On the one hand, the result is great-
er diversification of drive concepts in the
direction of more efficient versions. And on
the other, innovative, flexible vehicle usage
models are being developed. Meanwhile,
the customers' mobility needs are changing
rapidly too in terms of both car ownership
and car use. Digitalisation, connectivity and
the customers' desire for greater flexibility
and sustainability are accelerating this
change. The customers expect mobility
offerings ranging from hardware concepts
to digital services that enable movement.
NEW MOBILITY CONCEPTS
SUSTAINABLE MOBILITY OPTIONS FOR THE EMPLOYEES WHEN COMMUTING OR ON BUSINESS TRAVEL
104
Environment
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
As part of a global community of values,
Porsche assists regions and communities
around the world in conserving the environ-
ment, guaranteeing good labour and living
conditions and boosting social cohesion.
The focus here is on young or disadvantaged
people. These are to be nurtured and trained
in order to sustainably and permanently
improve their life situations. The company
campaigns for people whose social environ-
ment is directly or indirectly related to
Porsche. This applies both to its own sites
and to its suppliers and business partners.
The aim is to promote social innovation and
achieve a long-term, quantifiably positive
effect with corporate citizenship projects.
PARTNER TO SOCIETY
By 2030, the global community wishes
to guarantee the social, economic and
political inclusion of all, irrespective of
age, sex, physical or mental disability,
origin, ethnicity, beliefs, or economic or
other status. In particular, the popula-
tion groups with less than 50 per cent
of median income at their disposal are
to be strengthened. A more diverse
workforce boosts everybody's social
and economic inclusion and contrib-
utes to breaking down inequalities.
Porsche is championing mixed teams
and is therefore committed to the
achievement of SDG 10.
REDUCED INEQUALITIES
10 ►>
At Porsche, the focus is
on people. Each and every
employee contributes to
the success of the company
with their unique skills.
Porsche promotes diversity
and guarantees equal
opportunity.
Both of these are prioritised in the sustain-
ability strategy. This focuses on the topics
of the advancement of women and inter-
national diversity, with intergenerational col-
laboration and the LGBTIQ community also
being strengthened. At the same time, people
with disabilities are proactively incorporated.
In this way, Porsche promotes a work envir-
onment which is open, offers equal opportu-
nity and encourages everyone. The strategic
objective is the introduction of mixed teams
in which the different strengths and skills
of all the employees optimally complement
one another, allowing them to realise their
potential as best they can.
Porsche would be nothing without the people
who build it up and shape it. Porsche there-
fore focuses on people. Each and every
employee contributes to the success of the
company with their unique skills. Porsche
promotes diversity and equal opportunity.
103
DIVERSITY
PORSCHE MUSEUM
SOCIAL
ANUFAKTU
EXCL
PORSCHE
PORSCHE
SOCIAL
Diversity
Partner to society
105
PORSCHE PARTICIPATES IN THE PURPLE LIGHT UP INITIATIVE ON THE INTERNATIONAL DAY OF PERSONS WITH DISABILITIES
The concept of the circular economy is firmly
embedded as an area of action in the com-
pany's sustainability strategy as it seeks to
make more efficient use of resources. Targets
for and reporting on vehicle projects has
been established within strategy develop-
ment. In addition, the circular economy has
been expanded and optimised at the Porsche
sites and reuse and recycling concepts for
high-voltage batteries have been developed.
All the business divisions are involved in
regular dialogue.
Diesel
Social
BY 2025.
Sustainable raw materials
PORSCHE WISHES TO
SIGNIFICANTLY
INCREASE THE
PROPORTION OF
WOMEN IN
MANAGEMENT
POSITIONS
In addition, a company complaints desk has
been set up at Porsche, to which employees
can turn in the event of discrimination or to
which they can submit a complaint for review.
Porsche has a whistle-blower system in place
via which possible violations of equal oppor-
tunity and equal treatment can be reported.
Possible violations of the rules are followed
up by this system, taking into account data
protection, labour law and co-determination
requirements. If violations are identified, ac-
tion is taken accordingly.
Porsche has set itself the goal of increasing
diversity within the company by 2030. For
example, the premium manufacturer wishes
to establish a quantifiable number of mixed
teams throughout the organisation. The basis
for this is the strengthening of a mindset
among all employees that is conducive to
diversity. This involves creating an awareness
of the positive effects of and the complexity
of diversity. At the same time, a corporate
culture is to be established which perceives
the employees' differences as an advantage
and a competitive factor for the company -
regardless of gender, nationality, ethnic ori-
gin, religion, disability, age, sexual orientation
or identity.
the premium manufacturer
wishes to establish a quan-
tifiable number of mixed
teams throughout the
organisation. The basis for
this is the strengthening
of a mindset among all
employees that is conducive
to diversity. This involves
creating an awareness of
the positive effects of and
the complexity of diversity.
the goal of increasing
diversity within the company
by 2030. For example,
Porsche has set itself
By adding their signature to the Charta der
Vielfalt (Diversity Charter) in 2019, the
Executive Board and Works Council set out
in writing their commitment to diversity as
part of the corporate culture. The Diversity
and Equal Opportunity department is re-
sponsible for the long-term implementation
and safeguarding of equal opportunity and
diversity. This is based within the Learning,
Corporate Culture and Change division as a
source of input and an expert partner.
PORSCHE IS PURSUING
THE GOAL OF ESTABLISHING
AN INCLUSIVE CULTURE,
PROMOTING DIVERSITY
OF VIEWS AND
APPRECIATING
PEOPLE'S
DIFFERENCES.
Safeguarding and promoting diversity
and equal opportunity are highly import-
ant to Porsche and are enshrined as
corporate principles. It is a matter of
course for Porsche to offer all the em-
ployees the same opportunities. The
company rejects all forms of discrimin-
ation. Porsche is pursuing the goal of es-
tablishing an inclusive culture, promoting
diversity of views and appreciating people's
differences. This enables the employees
to contribute their personalities and
develop their personal potential, which
encourages appreciative and tolerant in-
teraction and taking a positive approach
to different perspectives. This is all
geared towards the achievement of a
high level of productivity, competitive-
ness, innovative capacity, creativity and
efficiency. The employees' sense of be-
longing and communal spirit are to be
bolstered at the same time. This is like-
wise enshrined in the Porsche family's
cultural self-image.
Significance for stakeholders and society
With this orientation, Porsche wishes to
serve as a role model in the social con-
text. The company therefore promotes
diversity and inclusion outside of the
factory gates too. Its activities here in-
clude social support projects and finding
voluntary placements for employees.
Voluntary engagement serves society
and broadens the helpers' horizons.
Porsche actively champions diversity and
inclusion in the workforce. The premium
manufacturer wishes to create an envir-
onment which promotes each and every
person's individuality in the interests
of the company. Porsche firmly believes
that diversity of views drives innovation
and therefore represents a key success
factor. Active diversity management
creates new ideas, a better understand-
ing of the market and greater employer
attractiveness.
DIVERSITY AND EQUAL OPPORTUNITY ✓
DIVERSITY OF VIEWS IS AN INTEGRAL PART OF THE PORSCHE CORPORATE CULTURE
S.PR 1203E
2155
S-VP 1001
CONSUMPTION OF RESOURCES AND SUS-
TAINABLE RAW MATERIALS IN VEHICLES
Many of the raw materials used in auto-
mobile production are finite or their extrac-
tion has a direct impact on the environment.
Porsche is therefore working on using
materials efficiently and reducing its primary
raw material needs. The sports car manufac-
turer is thus making use of or developing
environmentally friendly alternatives wher-
ever possible. This is especially important to
the company. Porsche therefore enshrined
targets for the use of sustainable materials
in all newly developed vehicle projects with
electric drives in 2021.
Efficient use of resources
Organisational prerequisites were estab-
lished at the strategic level and in the indi-
vidual departments in order for the targets
set to be systematically tracked. In an op-
erationalisation project, responsibilities were
defined, roles were assigned and target
tracking systems were established. The
company incorporated the vehicle and pro-
ject targets set into the target system for the
model lines and into the corresponding pro-
cesses. All the business divisions (Procure-
ment, Development, Production, Finance) are
involved in their realisation. The relevant en-
vironmental impacts are to be incorporated
even more into the vehicle development pro-
cess as an important decision-making factor.
Porsche wishes to reduce the negative en-
vironmental impacts of its material use. The
company is focusing on using secondary
or renewable raw materials in its vehicles.
Materials are additionally to be extracted and
sourced in environmentally responsible ways.
Porsche has therefore defined the proportion
of sustainable materials at the fleet level
(for example plastic recyclates and second-
ary source metals) as a performance in-
dicator for new vehicle projects as of 2025.
A higher proportion of sustainable materials
also reduces CO2 emissions in the supply
chain, thereby contributing to decarbonisation.
In addition to these approaches, Porsche
continues to work on the topic of light-
weight construction. Vehicle weight is to be
reduced on the basis of reduced material
use, thus also reducing energy consumption
and emissions.
Porsche is optimising methods of recycling
HV batteries together with the Volkswagen
Group and development partners, enabling
even more raw materials to be recycled.
And in a pilot project, used traction batteries
are being examined as part of a second-life
concept. If they are no longer suitable for
use in a vehicle, they can be used as station-
ary energy storage units instead.
Porsche founded the Cellforce Group for this
together with Customcells GmbH. This is
putting advanced approaches to the test.
The cell production waste is recycled by the
partner company BASF and turned directly
into cathode active material.
On the road, electric vehicles help save
the environment and improve air quality in
built-up areas. Given the raw materials and
production processes involved, the environ-
mental impacts of electric vehicles occur
primarily during the manufacturing process.
These can, however, be further reduced in
the future. Porsche is continuously improv-
ing battery production together with its
suppliers, for example by using electricity
from renewable energy sources in the up-
stream supply chain and in battery cell pro-
duction. In this way, the use of raw materials
in traction batteries can be further reduced,
the batteries' energy density and power in-
tensity can be increased and targeted use
can be made of the raw material sources
while having a reduced environmental im-
pact. Concepts allowing modular repairs,
should any be required in the traction bat-
tery, can also help conserve resources.
Targeted promotion of diversity
As a matter of principle, Porsche selects,
hires and promotes its employees according
to their qualifications and skills. Based on
the gender quota required by law, the sports
car manufacturer has set itself the target of
increasing the proportion of women in man-
agement positions by 2025. The proportion
of women at the first and second manage-
ment levels below the Executive Board are
to be increased to 20 per cent and 18 per
cent respectively.
To achieve this, all managers are required to
increase the proportion of women at all
management levels as well as in the pool of
young employees. Likewise to make gender
diversity quantifiable at Porsche, the com-
pany participated in the Women Career Index
(FKI), a management tool for the advance-
ment of women in business, for the second
consecutive year. Porsche was ranked sec-
ond overall and was also named Newcomer
of the Year.
Diversity as a corporate principle
OF THE YEAR.
PORSCHE RANKED SECOND
IN THE WOMEN CAREER
INDEX AND NAMED
NEWCOMER
Porsche is looking for new employees who
will actively help shape the future of mobility
and thus drive social change. The company
has taken various steps to this end, such as
the Sustainable Career employer branding
campaign and partnerships with relevant
universities and organisations, including its
collaboration with Formula Student Ger-
many and the programming schools 42 in
One of the central goals of Strategy 2030 is
to be an attractive and reliable employer.
For Porsche, this above all means keeping the
promises it makes its employees and turning
them into a tangible reality in everyday work-
ing life. Talented individuals in the labour
market should perceive Porsche as a top em-
ployer. This is dependent on it having a high
degree of credibility. This is the only way
Porsche can attract the most qualified staff
and retain them in the long term. The com-
pany wishes to recruit experienced and cre-
ative IT and digitalisation experts in the fields
of the future and is continuously stepping up
its efforts here.
Porsche sees a strong
corporate culture as a key
foundation. It serves to rise
to strategic challenges
and enable the company's
successful transformation.
The Porsche Code offers
long-term guidance here
as well as a target vision
for the employees and
managers.
Porsche sees a strong corporate culture as
a key foundation. It serves to rise to stra-
tegic challenges and enable the company's
successful transformation. The Porsche
Code offers long-term guidance here as
well as a target vision for the employees and
managers. It allows them to actively co-de-
termine the ongoing further development
of the Porsche culture and contribute to on-
going improvement.
Employees are one of the four key target
groups in Porsche's overarching Strategy
2030 alongside the customers, society and
investors. Porsche's primary goal in this
area is to remain an attractive and reliable
employer. What this first and foremost
means for the sports car manufacturer is
consistently focusing on the workforce and
assuming responsibility as an employer.
Being an attractive employer is therefore
a core aspect of its HR strategy.
ATTRACTIVENESS AS AN EMPLOYER
113
Porsche's corporate culture
Managers have a key role to play in raising
awareness of the importance and added
value of equal opportunity and diversity in
management and the workforce more gen-
erally. Within the Volkswagen Group pro-
gramme Together for Integrity, the
112
Porsche's international women's network
likewise serves as an important platform for
knowledge exchange across the various de-
partments. The network now has more than
1,000 members. As a source of input for
product development from a female per-
spective, it offers a variety of dialogue for-
mats and informal support such as case
advice offered by co-workers. In addition to
the women's network, the Proud@Porsche
Community is an integral part of the
Porsche culture too. Proud@Porsche is an
internal LGBTIQ network which serves the
employees as a platform for networking and
regular exchange. Other exchange formats
include Porsche Mentoring, which was
expanded in 2021, the Diversity Strategy
Talks and the dialogue conducted within
Porsche's Strategy 2030 or at the Sustain-
ability Festival.
Key elements here in the year under review
were interaction, discussion, intensive
dialogue and exchange within the Porsche
workforce. An International Diversity Com-
munity was founded as a means of exten-
sively promoting diversity. This is a forum
which brings together all the Porsche
subsidiaries around the world and their
respective diversity managers. The com-
munity has a shared fundamental under-
standing of diversity. Its purpose is to
strengthen the global perspective of diver-
sity and equal opportunity as an area of
action within Strategy 2030. It is provided
with tools and ideas for the concrete im-
plementation of diversity of views in the
Porsche markets, enabling them to learn
from one another on the basis of dialogue
and exchange.
Dialogue and exchange
managers' awareness of equal opportunity
and diversity is continuously raised in the
Porsche Leadership Labs. A digital "diversity
toolbox" assists them in their day-to-day
work and management roles and provides
an overview of the relevant performance in-
dicators. The toolbox features a large num-
ber of different measures, tools and ideas
which enable managers and their teams to
make diversity of views experienceable in
all its dimensions and question traditional
patterns of thinking and behaviour. The ma-
jority of the training and event formats were
switched to digital media in 2020 as a con-
sequence of the coronavirus crisis. Other
virtual and hybrid formats were added in
the year under review, including the Diver-
sity Days, which were held for the fifth time,
and initiatives in relation to this year's Inter-
national Women's Day.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
2
THE PROTECTION OF PERSONAL DATA IS AN UTMOST PRIORITY AT PORSCHE
If agility is Porsche's operating system, digit-
al responsibility is our user experience. Confi-
dence in the performance and quality of the
products constitutes part of the Porsche
brand essence. Transposing this confidence
of all the company stakeholders to the digital
world is the subject of the corporate digital
responsibility (CDR) strategy, which is cur-
rently being developed with the assistance of
MHP-A Porsche Company. Many of the ac-
tivities mentioned above are being consoli-
dated under the umbrella of CDR and the
complete portfolio continues to be expand-
ed. Digital responsibility means transferring
the principle of sustainability from analogue
to digital value creation. Porsche can only
fulfil its responsibilities for its own benefit
and for that of the stakeholders on the basis
of both components.
Corporate digital responsibility
The Data Protection Officer is supported by
a dedicated team and other interdisciplinary
data protection coordinators. As a spokes-
person for the brand, they are a member of
To stay abreast of the developments in digit-
alisation, Porsche established a Privacy
Engineering unit within its data protection
structure in the year under review. This pro-
vides technical data privacy advice and keeps
track of the latest technical developments in
terms of their significance to data privacy.
the Group's Steering Group on Data Protec-
tion. The objective of the Steering Group is
to ensure uniform application of the statu-
tory data protection requirements across
all brands and to exploit synergies from co-
operation within the Group. It also engages
with various associations and specialist
working groups.
128
Once again in the year under review, no
complaints regarding data privacy incidents
were lodged with Porsche either externally
or by any authorities. Internally, however,
incidents were identified and reported
thanks to the internal control measures and
vigilant employees. Of these incidents, ap-
proximately 40 per cent proved to be false
reports following investigation. None of the
remaining cases resulted in increased risks
regarding the rights and freedoms of data
subjects. In all of the justified cases, Porsche
took steps to remedy the causes in order
to ideally rule out any such incidents again
in the future. Due to internal confidentiality
rules, no details of specific data privacy cases
are published.
Governance
7.7 MILLION EUROS FOR
INNOVATIONS
The world is becoming more and more com-
plex. A company therefore has to continu-
ously adapt and evolve. Porsche therefore
purposefully builds up new skills and adapts
quickly to new customer requirements.
Only then can the transition to electromobility,
automated driving and digitalisation be
a success.
Innovation Management
Society's expectations of Porsche as a brand
are ever-changing. New customer groups in
particular will require Porsche to act more
sustainably than ever before in the future and
offer a product portfolio in keeping with this.
At the same time, the products must live up
to people's expectations regarding perform-
ance and quality.
The Innovation Management team therefore
continuously realises ideas from throughout
the company. This affords the employees
the space they need to work creatively and
creates the foundations for innovation.
The concept has found fertile soil - 80 to
100 employees apply themselves every year
either individually or in teams. Their inspir-
ational suggestions range from product
improvements and production line changes
to new, digital solutions.
The data protection strategy brings together
data-driven innovation, the ethical use of
data and compliance with the legal require-
ments. It is globally positioned on the basis
of a market survey conducted in 2021. Inter-
nationally, Porsche clearly focuses on a high
level of customer confidence. In the digital
age, the company considers its customers'
digital self-determination to be key to the
company's success. The customers should
not only have complete control of their ve-
hicle, but should also be in the driver's seat on
the information superhighway. In the future,
people's confidence in the Porsche brand
should be characterised not only by the qual-
ity of the products and services. Their con-
viction should also be reflected in their peace
of mind that they themselves can determine
what happens to their data. Corporate digital
responsibility (CDR) features in the goals of
Porsche's data protection strategy and will
be further expanded.
THE REALISATION
OF INNOVATION
129
Data protection organisation and strategy
Porsche firmly believes that effective and
evident protection of personal data is es-
sential. In this way, the company maintains
the brand's high reputation, guarantees
product safety and ultimately enables new
business models. Risks are minimised and
professionally managed. The Porsche data
protection strategy therefore pursues the
vision of "Privacy - Accelerating Dreams
& Innovation!" and is embedded within
Strategy 2030's "Digital security and priv-
acy" strategy field.
FIFTEEN BILLION EUROS FOR
DIGITAL TRANSFORMATION,
SUSTAINABLE
data the company holds on them via an in-
formation process. The management system
also implements all requests for the erasure
or rectification of personal information as well
as objections to data processing.
A START-UP
ECOSYSTEM.
PROJECTS
DEVELOPING
PORSCHE IS ENHANCING
ITS INNOVATIVE POWER
BY SYSTEMATICALLY
With its digitalisation strategy, Porsche is
enhancing its innovative power outside of
the company too. The sports car manufac-
turer has been systematically building up
a start-up ecosystem to this end for a num-
ber of years. The following units and initia-
tives cooperate closely under the auspices of
Porsche: Porsche Ventures as Porsche's ven-
ture capital arm, the technology unit Porsche
Digital, the company builder Forward31 and
APX, a joint venture for young entrepreneurs
established by Axel Springer and Porsche
Digital as long-term partners. Porsche
covers the entire start-up arena with this
agile quartet. Porsche is also a partner of the
open innovation platform Startup Autobahn,
which serves as an interface between indus-
try-leading businesses and young technol-
ogy companies. Its objective is to test
innovative technologies and take them to
production maturity.
Data security, transparency vis-à-vis the
customer and control over data disclosure
count among the primary principles in all of
Porsche's digitalisation projects. The cus-
tomers have a great deal of confidence in the
Porsche brand. The company therefore
makes a particular commitment to handling
the data entrusted to it as securely and as
responsibly as possible.
tion at the University of Tübingen is involved
in this as a scientific partner. A total of 72
performance indicators allow agile and trad-
itional project work in the areas of perform-
ance, product, teamwork and the individual
to be compared.
Porsche is supporting a research project to
make the effect of agile work methods quan-
tifiable. The Chair of Strategy and Organiza-
Porsche uses the Scaled Agile Framework
(SAFe). With this, the company gives the
agile work methods in all the digital product
teams an overarching framework and caters
to the increasing number of digital projects
with a standardised concept. SAFe combines
lean, agile and DevOps principles and prac-
tices for the iterative development of soft-
ware and digital products. It allows these
principles and practices to be extended
across large organisations, thereby enabling
a company to master complexity far beyond
the team and project levels.
Porsche has so far avoided any major data
privacy violations thanks to appropriate
technical, organisational and awareness-
raising measures and training. In preparation
for a potential violation, Porsche created an
integrated process via which data privacy
violations can be readily identified and rem-
edied. The company sets great store by
reducing and ideally eliminating any residual
risks for the data subjects. The process
allows potential risks for the customers in
the event of data privacy violations to be
swiftly resolved. At the same time, the cus-
tomer is transparently informed.
Porsche will spend 15 billion euros on digital
transformation, sustainable production and
electromobility up to 2025. At Porsche, the
operating system used for digitalisation is
agility. A transition to being lean and agile will
allow for creative and innovative collaboration
and will expedite targeted change. In add-
ition, it will give the Porsche customers better
products and services. Digital product organ-
isation is one example of the implementation
of these work methods - self-organised
teams work interdepartmentally, all using the
same methods, principles and processes. A
common rhythm is established in which vari-
ous goals are brought together and a culture
of collaboration is promoted, resulting in
what's known as the "Porsche Takt". In this
way, the company is further developing its
business agility, reducing the time to market
and boosting app ratings.
MOBILITY.
AND ELECTRO-
PRODUCTION
Porsche's digital transformation is also to
lead to a sustainable future. For example,
the company is assisting the "aware"
sustainability platform through Forward31,
with Porsche further developing the German
sustainability platform's strategy and busi-
ness model in cooperation with the platform
founders. The Berlin-based start-up is pur-
suing the goal of accompanying businesses
and consumers on their path to a sustainable
future on the basis of knowledge transfer
and input from a cross-industry network.
Customer privacy
The protection of personal data is an utmost
priority at Porsche. This includes the right
of customers to determine what is done with
their data. Personal data is safeguarded on
the basis of a data protection management
system which is organised globally and man-
aged centrally within the organisation.
Porsche's aim is that all products are devel-
oped with data protection in mind and de-
signed from the outset in a way that ensures
customers can trust that their data is safe.
To this end, data protection has been made
a key component of the product develop-
ment process at Porsche. All functions and
control units are examined by the develop-
ment team early on regarding their data pro-
tection sensitivity. If needed, they are add-
itionally checked by a team of data protection
lawyers, with not only the legal requirements
being taken into account, but also the
objectives of Porsche's data protection strat-
egy, which focuses on the customer.
With its Data Protection department,
Porsche creates the basis for the legally
compliant and appropriate handling of per-
sonal data. The data protection manage-
ment system was developed in accordance
with recognised national and international
standards (ISO/IDW/ISEA). Compliance
with the internal processes and rules is veri-
fied by an internal control system (ICS),
the ongoing optimisation, amendment and
further development of which Porsche en-
sures by means of a regular review of the
data protection management system and
its processes (plan-do-check-act, PDCA).
These two mechanisms (ICS and PDCA)
ensure that the data protection manage-
ment system has a user-oriented design
and that it and its components are effec-
tive. At the same time, new data protection
requirements can be updated in each pro-
cess to maintain compliance.
With this management system, Porsche pur-
sues the objective of protecting its custom-
ers' privacy and their right to determine what
happens to their information. The rights of
the customers, employees and suppliers are
taken into account during operation of the
management system. Particularly in the con-
text of the European Union's General Data
Protection Regulation (GDPR), customers are
able to assert their rights in their capacity as
data subjects. For example, they can find out
from the Group Data Protection Officer what
Investment in digitalisation
IN 2021.
An idea has to fulfil three criteria in order for
Porsche to consider it an innovation. It has
to be new and unique, it has to be profitable
and it must also offer a relevant customer
benefit. If the feedback given is positive, the
project is directly initiated with next to no
preliminary work. It takes initiative for the
ideas to be further developed because the
idea provider assumes responsibility for pro-
ject management. The Innovation Manage-
ment department offers assistance with
methodology, invests money if applicable
and, if needed, contacts potential internal
and external development partners. In this
way, the Innovation Management depart-
ment plays its part in innovative project ideas
being validated in a structured manner and,
in the event of success, more than likely
being further developed through to series
APX
COMPREHENSIVE VEHICLE
Vehicle safety at Porsche encompasses
front, side and rear protection, roof and door
stability, interior and component safety, as
well as protection of pedestrians, cyclists and
motorcyclists. Autonomous or highly auto-
mated driving and corresponding driver as-
sistance systems will additionally contribute
to making the roads even safer in the future.
legal requirements
Vehicle safety that exceeds
Vehicle safety is of the utmost importance
to Porsche, with the safety of the vehicle's
occupants being the top priority. In addition,
making sure that other road users are also
kept safe is another crucial aim.
CUSTOMER AND VEHICLE SAFETY
The company's focus is
always on providing
optimum protection for its
customers on the road.
vehicle safety extends far
beyond merely meeting
the legal requirements.
Porsche's response to
SAFETY ABOVE
FOR PORSCHE, VEHICLE SAFETY IS A KEY ISSUE IN ITS VEHICLE DEVELOPMENT
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Governance
CUSTOMER FEEDBACK DIRECTLY INFLUENCES THE PRODUCTS AND SERVICES
132
An Executive Board committee receives
a monthly report on the latest develop-
ments in product quality and customer
satisfaction, both at Porsche AG and in
the international sales subsidiaries. This
committee is complemented by regular
coordination between the Sales and
Marketing departments and international
representatives from the markets.
In addition to traditional tools such as
online questionnaires, an array of digital
communication options is used here, in-
cluding discussion forums, short surveys
and online discussions involving Porsche
employees and customers. The Porsche
customers appreciate the opportunity
to actively contribute to the develop-
ment work. And Porsche ensures that it
can continue to offer products with
a high degree of customer acceptance.
The products and services are evolving
at a rapid pace. The mechanism for cus-
tomers rating ideas and concepts there-
fore needs to be global in design and
fast. How important is product sub-
stance sustainability? How can Porsche
assist with city centre parking? What
colours do Porsche customers prefer?
Questions like these are continuously
answered by many customers in the four
most important markets in the Porsche
Advisors Club.
Customer feedback regarding products
and services
Porsche continuously expanded its online
digital functions. The company also fun-
damentally overhauled its strategy re-
garding native smartphone apps this year.
In the future, all of the core services are
to be conveniently pooled for the user in a
new My Porsche app. This applies among
other things to Connect, smart mobility,
e-performance and digital customer care.
The app solution makes interaction re-
garding a vehicle easier and facilitates dia-
logue with retail and with the Porsche
brand. Initially, the primary functions of
the previous apps My Porsche Essentials,
Connect and Car Connect will feature.
Further highlights in the areas of e-per-
formance and aftersales will follow before
the end of 2022. The new My Porsche
app was gradually rolled out in just under
50 countries around the world in the year
under review. Regular function expansions
ensure that the new vehicle generations
are supported and that the customers are
offered relevant, exclusive content.
133
Porsche significantly increased its efforts in
expanding the My Porsche customer portal
and extended the portal's range to more
than 1.2 million Porsche ID users around the
world. A range of new functions were im-
plemented during the reporting year. These
include booking events, such as dealer
events, and service appointments and also
video-based vehicle checks, which are made
available to the customers online by the
servicing dealership.
AND BEYOND
REQUIREMENTS.
live
Communications
Sports
Society
Employees
EMPLOYEES, SOCIETY, SPORTS AND COMMUNICATIONS
134
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
S&TA 5123E
THE LEGAL
+†
ff
The targets in relation to the protection of
vehicle occupants are derived from both the
global legal standards for vehicle safety and
numerous voluntary undertakings, as well as
a range of internal requirements (the vehicle
safety checklist). These guarantee a funda-
mental standard of safety that represents
the state of the art as well as a general level
of protection irrespective of the market and
the model. Porsche therefore constantly
monitors global legislation. Forecasts of new
requirements and field observations from
Porsche's team of accident investigators and
analysts likewise provide the basis for this.
Porsche level of protection
Responsibility for the functional targets be-
ing met lies with the corresponding product
development departments. The relevant pro-
ject coordinator for vehicle safety handles
overall product maturity tracking, while final
approval of the function is given by the re-
sponsible head of the specialist area.
mies used are fitted with sensors which
allow an evaluation of the possible injuries
to the occupants. Specific biomechanical
limits are adhered to, stipulating such
parameters as maximum acceleration or
deceleration of the head.
Assistance systems such as ABS, ESP and
automatic emergency braking can prevent
accidents. Another focus is to reduce the ef-
fects of an accident on the vehicle's occu-
pants. With this in mind, the deformation
behaviour of the vehicle body is precisely de-
fined for a variety of frontal, lateral and rear
end impacts during the development phase
of a new model. Porsche also uses a smart
restraint system consisting of airbags and
seatbelts. Simulations and crash tests are
used to verify the effectiveness of the safety
systems. In crash testing, the entire vehicle
slams into an object such as a wall under
controlled conditions. The crash test dum-
Safety as a pillar of vehicle development
Vehicle safety is a decisive criterion from the
outset in the development of vehicles. Devel-
opment work in the area of vehicle safety
focuses on functions and systems - every-
one who is responsible for the safety of indi-
vidual vehicle components and systems
collaborates in a central function. With re-
gard to "front protection" for example, the
relevant experts come together to focus on
the structure and aggregate design in terms
of energy management and deceleration
characteristic, as well as system develop-
ment, restraint systems and primary safety
components including components such as
airbags and seatbelts. All of the necessary
development tools such as simulations, com-
ponent trials, system and full vehicle testing
are also brought together. The functional
properties are further tuned in multiple iter-
ations on the basis of simulations and test-
ing. This process is continuously improved all
the way through to production maturity.
The requirements and approaches to ve-
hicle safety are discussed and agreed in
several functional corporate working groups.
The Safety working group comprising safety
officers for all of the brands meets regularly.
Porsche's response to vehicle safety extends
far beyond merely meeting the legal require-
ments. The company's focus is always on
providing the best possible level of protec-
tion for its customers on the road.
939
At Porsche, digital innovation and techno-
logical progress are key drivers of the
company's future. Digitalisation is therefore
enshrined in Porsche's Strategy 2030 as a
cross-cutting strategy. Porsche is also invest-
ing heavily in its own digital transformation.
Extension of digital customer care
Porsche aims to be able to reach its custom-
ers around the clock, whatever their location.
The Sales and Marketing division has there-
fore increased its expansion of digital con-
tact points in recent years. This has proved
to be especially beneficial during the corona-
virus crisis as it has allowed Porsche to
keep in touch with its customers.
and services. High levels of customer
satisfaction and close customer relation-
ships have therefore always played an import-
ant role. The range of products and services
Implementation
All suppliers are also expected to follow
the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas.
Porsche is active here together with the
Volkswagen Group within the Responsible
Minerals Initiative and the Responsible Mica
Initiative. The sustainability requirements
are enshrined in supply contracts. If these
are not complied with, contractually agreed
steps all the way up to termination of the
business relations are initiated.
Demanding sustainability from suppliers
Trust-based cooperation between Porsche
and its direct suppliers is based on shared
values and clear sustainability requirements
as defined in the Volkswagen Group. The
concept of sustainability in supplier rela-
tions and the Code of Conduct compel all
parties to observe environmental, social
and human rights standards. These are
founded on the International Chamber of
Commerce's Charter and the OECD's guide-
lines. The relevant core labour standards
of the International Labour Organization
(ILO) serve as the foundation for the sus-
tainability requirements.
Porsche developed a human rights due dili-
gence management system in collaboration
with the Volkswagen Group in the year under
review. The purpose of this is to systemat-
ically analyse, prioritise and reduce human
rights risks in the supply chain. A key meas-
ure here is extensive training and capacity
building for the direct suppliers, in particular
in countries and regions where there is a
higher risk of human rights violations.
Along with the Volkswagen Group, the com-
pany is actively engaged in industry dialogue
on the German federal government's National
Action Plan for Business and Human Rights.
The aim here is to establish decent labour
conditions throughout the supply chain. Via
the Volkswagen Group, Porsche is also a
member of the World Economic Forum's
Global Battery Alliance. Featuring public and
private partners along the entire battery sup-
ply chain, the Global Battery Alliance strives
to promote social and ecological sustainabil-
ity throughout the whole value chain of the
raw materials used in batteries.
Porsche is aware of its position in the supply
chain. The company rejects child labour,
forced labour and compulsory labour as well
as all forms of modern slavery and human
trafficking. Contractually binding sustain-
ability requirements for direct suppliers can
be found in the Code of Conduct for Busi-
ness Partners and serve as the basis for re-
sponsible supplier management. This also
and in particular relates to the upholding of
human rights.
Porsche endeavours to make its supply
chain resilient by adopting a responsible and
cautious approach. Following Porsche's in-
tegration into the Volkswagen Group, much
of its Purchasing division was incorporated
into the Group's procurement structure, with
the existing structures and processes being
adapted accordingly. Porsche closely coord-
inates and agrees on its contract awarding
decisions with the Volkswagen Group.
Protection of human rights
Porsche's supply chain is becoming more
and more important. The key factors con-
tributing to this are economic success, the
expanded product portfolio and the tech-
nologies applied. At the same time, the vol-
ume of supply parts is increasing due to
higher delivery figures and the procurement
of innovative components.
Sustainability is a core component of
Porsche's contract awards. The company
has established its own team within
Procurement which is responsible among
other things for rating the sustainability
performance of direct suppliers.
SAFEGUARDING OF HUMAN RIGHTS AND
ENVIRONMENTAL PROTECTION IN THE
SUPPLY CHAIN ✓
In Strategy 2030, the strategy field "Innova-
tive capabilities" was created as part of
the "Organisation" cross-cutting strategy.
This enhances the various innovation
units' collaboration and focuses it on
common content. Porsche is pursuing the
goal of using the available funds as effi-
ciently as possible (transfer rate > 55 per
cent) in order to be the technology leader
in defined focus areas by 2030.
Internally, vehicle development innovations
have a key part to play in preliminary de-
velopment in particular. At the heart of
preliminary development are the cycle
plan's target vehicles and their concrete
requirements as well as the brand identity
focuses, which include performance, fast
travel, the driver experience, design, quality
and sustainability.
to expedite digitalisation. More than 75
million euros a year have been earmarked
for investment in start-ups and venture
capital companies. This ecosystem in-
cludes the company builder Forward31 and
the earliest-stage investor APX, a 50:50
joint venture with Axel Springer, both of
which are based in Berlin. With the venture
capital unit Porsche Ventures and Porsche
Digital GmbH, the company is always on
the lookout for new start-ups that will stra-
tegically advance the brand.
in particular on collaboration with start-ups
and universities. For this reason, Porsche
is also a member of Startup Autobahn and
a partner to the CODE University of Applied
Sciences in Berlin and the Leipzig Graduate
School of Management. In some cases,
Porsche also invests directly in up-and-
coming companies or launches initiatives
In the context of innovation, there is a focus
In 2021, Innovation Management had
a budget of 7.7 million euros at its disposal
for the realisation of innovation projects.
However, this sum represents only a small
proportion of what Porsche spends on in-
novation. For example, additional resources
have been exclusively earmarked for the
topic of innovation at the subsidiaries
Porsche Digital and Porsche Engineering.
Organisation
Organisationally speaking, Innovation Man-
agement is embedded as a cross-divisional
team with a manager in each department.
The team pursues a defined innovation agenda
to focus its activities on the future topics
of relevance to Porsche in the areas of the
customer, products and the company. The
topic of sustainability was made an integral
part of the innovation agenda in the year
under review and is to be focused on even
more greatly in the future. The resultant pro-
jects will then contribute directly to Porsche's
sustainability targets being achieved.
production. The Innovation Management
department determines the ideas' success
with the aid of what's known as the transfer
rate. This determines the percentage at
which early-stage projects could be trans-
ferred to series development.
PORSCHE INVESTS IN START-UPS AND VENTURE CAPITAL COMPANIES
Innovations contribute to differentiation
between the Porsche vehicles.
They improve the value creation processes
and assist the company in achieving
its sustainability targets. They are there-
fore a key factor that influences long-
term success.
is always evolving. It is therefore especially
important that the customers be addressed
individually throughout their vehicle's life
cycle, for example with tailored offers.
Porsche achieves this with a customer rela-
tionship management system that extends
throughout the whole customer relationship.
THE S-RATING IS A MANDATORY
AWARD CRITERION
FOR ALL DIRECT
SUPPLIERS.
As a first step in the S-rating process,
(potential) direct suppliers must submit
a self-declaration on defined sustainability
criteria using a standardised questionnaire
that has become established in the auto-
motive industry.
Porsche is a supplier of exclusive vehicles
LONG-TERM CUSTOMER RELATIONS AND
SATISFACTION
In addition, strategic sustainability dialogues
are held with selected tier 1 suppliers, en-
suring there is ongoing exchange regarding
sustainability topics. Together, they consider
the opportunities and challenges, and pro-
mote sustainable activity.
Of all the parts, HV battery cells are the big-
gest driver of CO₂ emissions in the supply
chain for electric vehicles. Therefore, to re-
duce these emissions, targeted measures
were defined which suppliers must hence-
forth meet as requirements for new projects.
To realise the CO2 reduction targets in the
vehicle projects, a comprehensive process
was developed which accommodates all the
interfaces. This applies to all new enquiries.
Based on a hotspot analysis, Porsche held
numerous workshops with suppliers from rele-
vant industries in the reporting year. These
serve to coordinate and monitor the CO₂
reduction targets and measures as well as
those for the use of sustainable materials.
Porsche also required more than 1,200 direct
suppliers of production materials to transpar-
ently present their CO2 reduction plans.
Porsche components. This applies to all
production material contracts awarded for
new vehicle projects.
PORSCHE KEEPS TRACK OF ITS RAW MATERIALS, FOR EXAMPLE WHERE ITS LEATHER COMES FROM
Since July 2021, the sports car manufac-
turer has required its series suppliers to use
renewable energies for the manufacture of
CO₂ emissions in the supply chain
Porsche has set itself an ambitious target -
the company wishes to achieve balance-
sheet CO2 neutrality across the entire value
chain by 2030. The sports car manufactur-
er's supply chain is currently responsible for
around 20 per cent of Porsche's CO₂ equiva-
lent emissions, which are used to calculate
the Decarbonisation Index. Porsche expects
this proportion to significantly increase
in line with ever greater electrification.
Porsche always conducts integrity checks
before entering into business relations with
new partners. Since the introduction of
the sustainability rating (S-rating) in 2019,
sustainability has been a mandatory award
criterion for all the direct suppliers of pro-
duction materials. This also applies to sup-
pliers in other areas based on risk. The
company's checks include verification of so-
cial and environmental risks, as well as com-
pliance including ethical conduct. When
awarding contracts, sustainability is placed
on an equal footing with other criteria such
as cost, quality, technological capabilities
and logistics.
Porsche uses new technologies in certain
global and complex supply chains. This
increases supply chain transparency and
helps to prevent raw material procurement
risks. Since 2020, Porsche has been en-
gaged in a project together with a start-up.
This uses artificial intelligence to compre-
hensively screen suppliers. The permanent
monitoring of freely available Internet
sources including social media provides
timely indications of possible breaches by
the suppliers. This technical solution pro-
vides an early warning of potential sustain-
ability violations at the lower supply chain
levels. The results of the production-based
pilot testing involving more than 4,000 dir-
ect and indirect suppliers are promising.
During the reporting year, the Volkswagen
Group conducted several projects in which
"high-risk" raw materials were analysed in
turn. Porsche is working in close coopera-
tion with selected direct suppliers to verify
two of the identified high-risk materials.
In this way, the entire supply chain is fol-
lowed back to the origin of the raw material
and all the intermediate suppliers involved
can be identified. This enables Porsche to
detect human rights risks at an early stage
and take action accordingly. The first Re-
sponsible Raw Materials Report was pub-
lished in the year under review, covering the
most important findings and measures.
131
Governance
130
For example, if human rights violations are
identified during an on-site visit, an action
plan to remedy the shortcomings is agreed
upon with the supplier, which they must then
work through. If this proves not be effective,
Porsche will issue punitive measures.
Responsible procurement of raw materials
Porsche endeavours to uphold human rights
standards in the raw materials supply chain.
Porsche works closely with its immediate
suppliers here and demands the disclosure of
the origins of materials that are potentially
bound up in human rights violations such as
child, compulsory or forced labour as well as
all forms of modern slavery and people traf-
ficking. These occur among other things in
the context of the labour conditions for those
involved in the extraction of raw materials
such as cobalt, mica and natural rubber.
Given the depth of the supply chains, which
can comprise multiple levels, these process-
es are extremely complex. Porsche therefore
always takes a risk-based approach.
All the Porsche Procurement employees are
obliged to complete an S-rating training
module. This embeds sustainability in the
operational procurement processes. An
e-learning module also allows employees in
other departments to find out about the
concept and management options provided
by the S-rating.
In total, 1,796 direct suppliers had sub-
mitted a questionnaire up to the reporting
year. Of these, 657 underwent on-site
audits. A large proportion of the suppliers
that have submitted a tender for a con-
tract already meet Porsche's sustainability
requirements.
If the results of the questionnaire are not
satisfactory, a second on-site inspection is
carried out by an independent sustainability
auditor. If any concerns are raised, the sup-
plier is given a negative rating. In collabor-
ation with the supplier, a Corrective Action
Plan is initiated. Based on this, the identi-
fied risks must be quickly remedied. Imple-
mentation of any measures is subject to
central verification. The affected suppliers
are not considered for further contracts until
they comply with and meet the sustain-
ability requirements.
Within the Volkswagen Group, existing
approaches and targets are continually
refined to guarantee the responsible pro-
curement of raw materials. An example
here is the product requirements document
for leather, which will be mandatory for all
contracts newly awarded from 2022. The
product requirements document requires
disclosure of the supply chain and makes a
sustainability certificate which is specific
to leather mandatory.
DIGITALISATION, DATA PROTECTION AND
CORPORATE DIGITAL RESPONSIBILITY
The compliance officers are responsible for
conducting compliance training in collab-
oration with the HR department. A large
number of virtual and face-to-face training
sessions for various target groups were of-
fered in 2021. In addition, the Code of Con-
duct digital learning module was updated
and published. This teaches the principles of
the Code and provides contact details for
the whistle-blower system on the one hand
and, in particular, explains the content of
the Group guideline "Avoidance of conflicts
of interest and corruption" on the other.
Porsche AG's training quota at the end of
Governance
ISS ESG assesses sustainability performance
on the basis of more than 100 standardised,
industry-specific indicators covering the
environment, society and corporate govern-
ance. ISS ESG annually analyses more than
800 different indicators at over 8,000 com-
panies around the world. Its analysis is based
on information in the public domain or infor-
mation obtained through direct dialogue.
ISS ESG rated Porsche's sustainability perform-
ance especially positively in the areas of
"Staff and suppliers", "Society and product re-
sponsibility" and "Environmental management".
For its assessments in the automotive indus-
try, ISS ESG focuses particularly strongly on
the companies' strategies regarding alterna-
tive drives, in particular electric vehicles. With
the Taycan, the all-electric successor to the
Macan and the company's further electrifica-
tion strategy, Porsche is well placed for the
future in this focus area.
Capital market
Corporate ESG
Performance
RATED BY
Porsche sets great store by its sustainability
performance being assessed independently.
In October 2021, the company was once
again awarded Prime status by the rating
agency ISS ESG and improved its previous
year's rating of C+ to B-. Prime status is
awarded to companies with ESG perform-
ance that exceeds a stipulated threshold
which is typical for the sector. This means
they meet ambitious performance require-
ments. The sports car manufacturer has set
itself the goal of being classified as one of
the leading companies in the automotive in-
dustry in this rating.
ISS ESG‣
ESG stands for environ-
ment, social and govern-
ance, and represents a set
of requirements made of
companies by the capital
market. It can be used
to better understand
and assess companies'
performances in the area
of sustainability. Porsche
introduced extensive ESG
management in the year
under review.
PORSCHE'S ESG FOCUS
山
Analysts
Investors
Prime
Porsche is developing future-oriented drive concepts with a focus on
electromobility and decarbonisation and is expediting the development
of key technologies for future generations.
Porsche is voluntarily assessed by the sus-
tainability rating agency ISS ESG at regular
intervals. Here, the company's sustainability
performance in the areas of the environment,
society and responsible corporate govern-
ance is examined. Porsche considers this
independent, external assessment to be an
important tool and source of impetus.
Building on this, it can continuously improve
its sustainability management.
Going forward, the ESG management system
should make it easier for the Executive Board
and the departments involved to monitor
and manage their ESG contributions, interpret
results and produce regular reports. It was
decided in the year under review that a cen-
tralised IT system would be established for
this purpose. The Sustainability department
pools this software's output, manages the
monitoring process and assists the depart-
ments with material decisions.
SUSTAINABILITY IN
THE BUSINESS PROCESSES
Effective, sustainable activity is a funda-
mental prerequisite for the economic suc-
cess of a business. Only those that enjoy
economic success have the means to
intercede on behalf of the environment
and society. Porsche therefore builds
on economic stability and value-creating
growth.
Securing high profitability
Porsche has excellent profitability. It has
set itself the strategic target of achieving
a minimum operating return on sales of 15
per cent and a return on investment of at
least 21 per cent. The sports car manufac-
turer wishes to ensure that it continues to
meet its own profit targets in the future on
the basis of continuous productivity and
process improvements as well as strict
cost management. This applies irrespective
of its high investments in e-mobility and
digitalisation. Porsche's company manage-
ment is focused on maintaining a flexible
and scalable organisational and cost struc-
ture. The cost-effectiveness of strategic
projects and plans in the product portfolio
is therefore prioritised and safeguarded
within defined budgets. Porsche gauges
and reports on the success of its measures
on the basis of financial data and value cre-
ation calculations.
Porsche focusing on sustainable financing
In the future, business and the ability to
compete will be heavily dependent on the
transition to climate-neutral and more
closed-loop-oriented products and produc-
tion forms. With the European Union's
Sustainable Finance Strategy, more and
more capital will be directed into sustain-
able investments. Financial products that
are used to pursue sustainable objectives
form part of this trend. Porsche already
embarked on a new path in August 2019
with the refinancing of sustainable projects.
The company is the first automobile manu-
facturer to date to offer a green Schuld-
schein (promissory note), with a volume of
one billion euros. The refinanced project
portfolio includes funds for the develop-
ment of the all-electric Porsche Taycan and
ISS ESG rating
investments in modern, energy-efficient
production buildings and facilities that will
be used exclusively for manufacturing
and developing battery-powered vehicles.
TRANSPARENT CORPORATE GOVERNANCE
Porsche is aware of the importance of its
reputation of doing business successfully.
The company therefore takes its stake-
holders' interests into account in its decision-
making and sets great store by living up to
society's expectations.
ESG management at Porsche
For this reason, Porsche introduced exten-
sive ESG management in the year under re-
view. ESG stands for environment, social and
governance, and represents a set of require-
ments made of companies by the capital
market. It can be used to better understand
and assess companies' performances in the
area of sustainability.
Porsche planned its ESG management sys-
tem in 2021 and incorporated appropriate
evaluation processes into its existing sustain-
ability management. Responsibility for this
lies with the Sustainability department, which
also manages the sustainability strategy.
Adopting an integrated approach, the ESG
management system complements the strat-
egy with additional key topics.
The company established a set of per-
formance indicators which illustrate ma-
terial non-financial ESG contributions and
transparently demonstrate the Porsche
business model's contribution to sustain-
able development. Comprehensive ESG
management will be established beyond
the year under review for a subset of these
performance indicators.
The company has obtained Clean Trans-
portation certification from the Climate
Bonds Initiative (CBI) for the composition
of this portfolio of green projects. This was
carried out in accordance with the Green
Bond Principles of the International Capital
Market Association and was verified by
the sustainability rating agency ISS ESG.
ISS ESG and the CBI confirmed that the
funds had been used correctly and com-
pletely for the project portfolio in post-
issuance certification carried out in
September 2020. The refinanced green
project portfolio supports the United
Nations' Sustainable Development Goals,
specifically targets 9.4 (clean technologies
to reduce CO2 emissions) and 11.2 (access
to sustainable transport systems).
The proportion of sustainable refinancing
in the Automotive subgroup is currently
around 60 per cent. This is to be increased.
to 100 per cent by 2030.
PORSCHE FOCUSING ON SUSTAINABLE FINANCING
Comprehensive
124
• As a member of society:
human rights; equal opportunity and equal
treatment; product conformity and prod-
uct safety; environmental protection; do-
nations, sponsorships and charity;
communication and marketing; political
lobbying.
• As a business partner: conflicts of interest;
gifts, hospitality and invitations; prohibition
of corruption; dealings with officials and
holders of political office; prohibition of
money laundering and terrorism financing;
accounting and financial reporting; taxes
and customs; fair and free competition; pro-
curement; export control; prohibition of in-
sider trading.
• In the workplace: occupational safety and
healthcare; data protection; security and
protection of information, know-how and
intellectual property; IT security; handling
company assets.
The Code of Conduct for Business Partners
governs Porsche's expectation that its busi-
ness partners will comply with the law as ap-
plicable. Acknowledgement of principles of
ethical conduct and expectations regarding
acting sustainably are also enshrined in this
binding document.
Both of these codes explicitly bring the
whistle-blower system for potential viola-
tions of the law to people's attention, stating
the relevant internal and external reporting
channels. Detailed information about this
system is also published online, where there
is the option of especially safe, anonymous
whistle-blowing.
The Code of Conduct was updated for the
employees in the year under review. This
governs all aspects of the employees' respon-
sibility for compliance:
All compliance training at Porsche is binding.
The training progress made in the course
of the year is monitored, with the final train-
ing status being reported both to the Com-
pliance Council and to the Executive Board
and Supervisory Board. The Compliance
Council coordinates the Porsche Group's
compliance roll-out measures. It also ad-
vises the Chief Compliance Officer regarding
further development of Porsche's compli-
ance management system.
AND CORRUPTION.
OF INTEREST
OF CONFLICTS
91 PER CENT OF THE EMPLOYEES
HAVE TRAINING IN THE
AVOIDANCE
A digital learning module on the topic of
fraud prevention was developed and
will be available from 2022. This follows
the established fun approach of the
existing compliance training format and
takes the form of a digital board game.
The participants' knowledge is enhanced
through their solving tasks and practical
cases and their having to confirm that they
have read general information.
the year under review was 91 per cent.
The compliance officers deliver the training
on the basis of a subject-specific plan which
uses risk analyses to identify the relevant
target groups and key areas of content. This
also defines the number and frequency of
events as well as the capacity needs. A regu-
lar programme of set training events is in
place for (new) managers, junior managers
(format ended in 2021), new employees
and trainees. Training is also provided on
current topics with specific departments or
on request.
Material
Code of Conduct
THE EMPLOYEES' AND BUSINESS
PARTNERS' RESPONSIBILITY
FOR COMPLIANCE IS
COMPREHENSIVELY
GOVERNED BY
Governance
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
125
COMPLIANCE AND INTEGRITY ✓
Acting responsibly also involves complying
with the applicable laws and acting with in-
tegrity. Porsche requires compliance of the
employees in the form of conforming to rules
and promotes integrity as a personal attitude.
Established compliance structure
THE CODES
OF CONDUCT.
The point of compliance is to avoid penalties,
fines, claims for damages or other legal con-
sequences for the company or its employees.
Compliance also contributes to protecting
the company's good reputation and prevent-
ing any loss of confidence in the company.
The company promotes legally compliant
conduct by means of a compliance structure
which is based as closely as possible on the
business model. This includes legally water-
tight processes as well as preventive and re-
active measures. Porsche's compliance
management system currently encompasses
six areas of compliance, including anti-cor-
ruption and anti-money laundering measures.
With its adopted compliance structure,
Porsche seeks to prevent violations of the law
and help its employees act in accordance
with the legal and statutory provisions. It in-
cludes a Chief Compliance Officer, compli-
ance officers covering specific topics at
Porsche AG and local compliance officers at
the Group companies.
Porsche's central compliance help desk offers
information and advice internally, answering
all of the managers' and employees' questions
regarding compliance issues. In addition, em-
ployees can report possible violations of the
law to an internal office set up accordingly.
Outside the company, Porsche managers, em-
ployees, customers and business partners, as
well as public officials and other external indi-
viduals, can report possible legal violations
anonymously to two ombudsmen. Porsche
diligently investigates all reports, taking the
applicable data protection regulations into ac-
count. Any violations identified are responded
to in line with the relevant labour and co-de-
termination laws. Suitable countermeasures
can be introduced and individual cases of mis-
conduct can be sanctioned.
THE EFFECTIVE-
NESS OF THE
COMPLIANCE
MANAGEMENT
SYSTEM IS
REGULARLY
AUDITED.
The effectiveness of the compliance manage-
ment system is audited by the affected de-
partment as part of the governance, risk and
compliance (GRC) process and regularly also
by the Internal Audit department. The com-
pliance management system is also regularly
incorporated into site checks during prepar-
ation of the Annual and Sustainability Report.
The Executive Board and the Supervisory
Board of Porsche AG receive regular reports
on action taken by the compliance organisa-
tion and on the preventive and reactive meas-
ures implemented at the company.
In 2021, compliance communications focused
among other things on intranet posts regard-
ing publication of the digital learning module
"Competition law in procurement" and about
International Anti-Corruption Day. These were
complemented by reporting on other compli-
ance issues in the site newspaper.
Regular risk analyses are used to determine
where action is needed and derive preventive
measures. Aspects such as the company's
business model, relevant environmental con-
ditions and the relationships with business
partners are taken into account. At Porsche,
binding rules are adopted and communicated
and confidential compliance advice is offered.
These examples count among the key meas-
ures. Fundamentally, the Code of Conduct
sets out the most important rules to be ap-
plied at Porsche. Directed at the managers
and the employees, it documents the expec-
tations of their assuming responsibility for
compliance as members of society, as busi-
ness partners and in the workplace. It also
specifies the rules regarding how to avoid
corruption or violations of antitrust law, how
to handle conflicts of interest or the receipt of
gifts and how to prevent money laundering.
Managers and other employee groups are
given targeted information and training on
compliance and the related risks as a means
of sustainably promoting lawful behaviour.
127
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
DEVELOPMENT GOALS
Porsche has in place collective agreements
on wages and conditions that apply to all full-
time and part-time employees. Remuneration
is made transparent on the basis of the applic-
able pay framework agreement. An additional
Labour Market of the Future package has
been agreed, which brings together numer-
ous working time regulations. These include
flexible working hours, voluntary personal
sabbaticals and care leave. The company is
also a member of the employers' association
Südwestmetall and is therefore part of the
social partnership actively practised between
the metal and electrical industry and the
IG Metall trade union.
Open communication channels
Porsche offers its employees numerous ways
of making suggestions, reporting problems
or registering complaints with committees
Occupational safety is a top
priority for Porsche and its
employees. An organised
and structured occupational
health and safety management
system ensures a uniform
approach and is designed to
ensure that legal provisions
are implemented.
and decision-making bodies. One example
includes the union ombudsman structure. It
is also possible to talk directly to individual
members of the Works Council at any time.
Alongside the Works Council, there are inter-
est groups for employees with severe disabil-
ities and representation for young workers
and trainees. Both of these bodies are closely
integrated with the Works Council and in-
volved in its decision-making processes.
Co-determination in the workplace con-
tinues to play an important role in the new
digital era. The primary aim here is to cover
all mandatory areas requiring co-determin-
ation by law to ensure compliance. Examples
include the introduction of IT systems that
are capable of monitoring employee conduct
or performance and data protection meas-
ures or rules on the use of electronic media
for communication. Porsche endeavours to
involve the employee representatives early
on in the development process. Close collab-
oration between the company and employee
representatives is also highly important
when it comes to research into operating
solutions for the new digital world of work.
Internal media are used to inform employ-
ees about current topics, especially from
the perspective of the employees and their
elected representatives.
Works Councils and collective agreements
Porsche's main site is in Germany. This means
it is required by law to engage in collective
co-determination. The company has been
systematically meeting this obligation for
decades and has positive experience in this
area. For Porsche, it is natural for employees
and their legal representatives to be informed
as soon as possible and in as much detail as
possible about any significant changes re-
garding operational workflows or the organisa-
tion of the company. This is done in compli-
ance with national laws, applicable collective
bargaining agreements and works agree-
ments, including beyond Germany's borders.
The information channels used here include
the Supervisory Board with equal representa-
tion, the Works Council committees, a range
of communication formats and the works
agreement database on the intranet.
In addition, the Works Council keeps employ-
ees fully updated about its works meetings at
each of Porsche's sites in Germany and thus
provides an open platform for discussion.
The coronavirus restrictions during the re-
porting year meant that no works meetings
could take place. Communication with the
workforce was therefore maintained via the
intranet, information videos and mailings.
The protection of employee health and
safety is a core responsibility for any
company. It is also a basic prerequisite
for ensuring a motivated and capable
workforce. Porsche's occupational health
and safety management has a key part
to play here, ensuring that the company
can continue to develop, produce and sell
exclusive, in-demand vehicles.
Regulated occupational safety processes
Occupational safety is a top priority for
Porsche and its employees. An organised
and structured occupational health and safety
management system ensures a uniform
approach and is designed to ensure that
legal provisions are implemented. This helps
to prevent workplace accidents and occupa-
tional diseases as far as possible.
The central processes are standardised
and are set out in the Group guideline on
occupational safety. Occupational safety is
regulated in law in Germany, so the Group
guideline represents a major element of
Porsche's compliance management system.
It applies to the whole workforce. The man-
agers are to ensure that their employees are
familiar and comply with the provisions of
this guideline. Specialists in occupational
safety and works doctors are available to
all employees in an advisory capacity. All
staff members are also represented through
their legally defined representatives in the
occupational safety committees in accord-
ance with Germany's Occupational Safety
Act (ASIG). The Group guideline is currently
being updated. It is to be extended to in-
clude health protection and will then serve
as the basis for a certifiable occupational
health and safety management system.
Safe and humane labour conditions are
particularly important in view of a world of
work which continues to gather pace and
is becoming more demanding as a result of
automation and digital transformation. The
Occupational Safety department is open to
receiving queries from employees. In addition,
it regularly tours workplaces with managers
who have local responsibilities and provides
assistance with risk assessments and stand-
ard operating procedures.
Workplaces, machinery and equipment are
designed with input from safety engineers
with the aim of preventing accidents and
risks to health. Construction and installation
sites are overseen and monitored by special
construction experts beyond what is required
by law. Safety standards are subject to on-
going refinement as part of this process.
OCCUPATIONAL HEALTH AND SAFETY
In the event of workplace accidents, the
causes are analysed in detail and appropri-
ate measures are implemented in the form
of action plans to avoid future accidents.
The occurrence of workplace accidents at
Porsche and in its organisational units is
measured using the injury rate (occupation-
al accident index) and reported monthly.
Porsche endeavours to continuously improve
workplace safety for the employees on the
basis of annual targets.
One of the key pillars of Porsche's corporate
culture is corporate co-determination. There
is regular dialogue between the employer
and the employees, including on difficult
issues. Open and direct communication
across all hierarchical levels is a long-
standing tradition at Porsche. It provides
the basis for exceptionally constructive
cooperation. Alongside collective bargaining
agreements, corporate co-determination
is a key tool with regard to good work and
employees who apply themselves. The
advantages of corporate co-determination
include better labour conditions, higher and
fairer wages, more training and professional
development opportunities, greater job
security and a good work-life balance.
Compliance training
126
Integrity is an integral part of the current and
future HR development programmes. Dia-
logue events regarding Porsche's values and
culture are held in the organisational units.
A catalogue of internal communication
measures is used to continuously raise
awareness of the topic of integrity among
the workforce. The interdisciplinary multi-
plier network covering the brand, culture
and integrity was further expanded in the
year under review. This network serves as
a platform for knowledge exchange, ideas
and presentations, and assists the ambas-
sadors in embedding the topic of integrity
within the departments. A poll on acting
with integrity and lawful behaviour within
the corporate organisation is carried out
annually as part of the Porsche employee
survey. In the event of conspicuous mood
barometer findings, the causes are investi-
gated and appropriate measures are intro-
duced if necessary, with the involvement of
HR and the relevant line manager.
The topic of "Culture and integrity" is being
rolled out internationally at Porsche by the
Volkswagen Group as part of its Together4-
Integrity (T41) programme. The resultant
long-term measures aim to further strength-
en the integrity culture and will be imple-
mented as scheduled.
COMPLIANCE WITH
INTEGRITY IS SUPPORTED
BY AMBASSADORS
AND A MULTIPLIER
NETWORK.
Integrity means firmly believing in one's
values and ethical principles and steadfastly
acting in accordance with these. It is an
integral part of the management mission
statement and is a top priority within the
Porsche strategy regarding employee
collaboration. Acting with integrity is also
indispensable in retail. Integrity is therefore
firmly embedded in the Porsche service
standards as a key value. The high level of
attention paid to this topic is also reflected
in the reporting to the Executive Board and
Supervisory Board. It is additionally a focus
in the decision-making processes of all the
top committees.
CORPORATE CO-DETERMINATION
→ GRI 102-41
Promoting integrity
A TOP PRIORITY
AS AN INTEGRAL PART OF
THE MANAGEMENT
MISSION STATEMENT,
INTEGRITY IS
A key measure in the year under review was
the global roll-out of risk analysis on the
topic of human rights as part of the Porsche
Group's established compliance risk ana-
lysis. The sports car manufacturer also
incorporated human rights aspects into its
training and communication measures,
for example with background information,
warning signs and recommendations for
action in the event of indications of human
rights violations.
As a company that campaigns for diversity
and equal opportunity, the upholding of
internationally recognised human rights is a
matter of course for Porsche. This applies
on the one hand to the company's own sites.
On the other hand, it is also something which
Porsche expects of its direct suppliers, who
are required to also implement the corre-
sponding requirements in their lower supply
chain levels. The sports car manufacturer
rejects child labour, forced labour and com-
pulsory labour as well as all forms of modern
slavery. Porsche develops and produces its
products in accordance with the relevant
conventions, including the labour and social
standards of the International Labour
Organization (ILO) and the OECD Guidelines
for Multinational Enterprises.
Upholding human rights
Further details of the Compliance depart-
ment's training programme and communica-
tions are available to Porsche employees
on the intranet. In addition to the relevant
Group and company guidelines, this features
information on compliance culture and the
compliance organisational structure. It also
provides information about who to contact
with queries or information and about the
reporting channels as well as films, flyers, in-
formation cards and brochures.
AT PORSCHE.
(SDGs)
Preventive health management
at the workplace. On the basis of the Occu-
pational Safety Act, the works doctors assist
with the design of healthy and ergonomic
workplaces. They advise the employees and
carry out preventive checks. In addition, they
assist with the organisation of first aid and
help with the reintroduction of employees to
the workplace after illness.
Porsche's corporate responsibility does
not end at the factory gates - it extends
across the entire value chain. With the
expanded product portfolio and the new
technologies used, the supply chain is
becoming increasingly important. Porsche
is therefore systematically focusing its
strategy on the continuous management
of its supplier relations in terms of sus-
tainability aspects. The sustainability as-
sessment of its direct suppliers has been
a binding criterion for the awarding of
contracts since the introduction of the
sustainability rating (S-rating). It helps to
safeguard sustainable procurement,
compliance with human rights standards
and employment practices, and respon-
sible resource management among the
suppliers. The materials used are also to
be systematically analysed as the current
projects are continued together with
the Volkswagen Group. Here, Porsche
looks for potential risks in relation to ma-
terial origins, production conditions or
raw material extraction.
8
DECENT WORK AND ECONOMIC
GROWTH
Human rights are not respected in all
regions around the world. The United
Nations has therefore called for effective
action to be immediately taken in this
regard in order to bring an end to forced
labour, modern slavery, human trafficking
and child labour.
With the S-rating, Porsche encourages
its direct suppliers to apply minimum
standards, including the upholding of
human rights at all stages of the value
chain. An increasing proportion of sup-
pliers with a good S-rating contributes
to modern slavery and child labour being
prevented. At the same time, this pro-
motes decent and sustainable employ-
ment in the supply chain.
COMMITMENT TO SUSTAINABLE
SUPPLY CHAIN RESPONSIBILITY
EMPLOYMENT AND
THE PROMOTION OF
HUMAN RIGHTS.
2300
GOOD, ETHICAL CORPORATE GOVERNANCE IS ESSENTIAL FOR PORSCHE
122
GOVERNANCE AND TRANSPARENCY
Porsche sets the highest standards for
itself. For Porsche, ethical behaviour is
essential, not least because the confidence
that the customers, partners and society
have in the company is dependent on this.
Acting and doing business with integrity
therefore serve as the foundations for all
of the company's activities. In this area of
action, Porsche is strategically working
to increase transparency and responsible
corporate governance in all the relevant
areas. The objective is for the sports car
manufacturer to be perceived by the
industry and society as a strong partner and
an exemplary company. Porsche also has
itself rated by external organisations to this
end and bases its improvement measures
on the results of these ratings.
17 SUSTAINABLE
Porsche has set itself the goal of 90 per
cent of its purchasing volume meeting
the most stringent quality standards by
2030. This goal relates to the direct
suppliers of production materials with a
positive S-rating in the top assessment
category. The degree of fulfilment in the
year under review was 69 per cent. In
this way, Porsche seeks to contribute to
sustainable employment and to the pro-
motion of human rights in the regions
affected by its activities.
Health management encompasses all of the
topics that contribute to the health of em-
ployees. In addition to safety systems and the
provision of local medical care for employees
working at the sites, there are services for
preventive health promotion in the workplace.
Porsche Health Management offers courses
on healthy eating, relaxation techniques and
effective self-management. Employees can
also access individual physiotherapy advice
GOVERNANCE
GOVERNANCE
Supply chain responsibility
Governance and transparency
The Health Management division is re-
sponsible for all health promotion activities,
structures and processes. A number of
company health departments are respon-
sible for providing medical care at work. As
a preventive discipline, occupational health
care plays a key role in occupational health
management. The works doctors' respon-
sibilities include analysis of the effects of
work on employees. They also promote the
employees' health and productivity and as-
sist the employer in planning healthy labour
conditions. Occupational health care also
encompasses emergency paramedics as part
of first-aid organisation, meaning acute and
emergency health care is always guaranteed
at the plants.
EXTENSIVE VACCINATION SERVICES FOR EMPLOYEES AND THEIR FAMILIES
Porsche has a targeted occupational reinte-
gration management system in place for re-
storing employees' capabilities after longer
periods of illness. For example, the affected
employees are reintroduced to the strains of
working by means of gradual workplace re-
integration. Porsche's Health Management
division also provides social counselling to
those with psychosocial stress and support
for those in difficult life conditions.
Employee integration
All the employees are represented in occu-
pational safety committees by statutory rep-
resentatives. The site-specific occupational
safety committees meet four times each
year. All the employees receive information
on occupational safety at least once a year.
This ensures that they are kept up to date on
specific hazards and rules of conduct. The
intranet also contains a broad range of infor-
mation and education on health and safety in
the workplace.
To avoid risks to other companies' employees
at Porsche sites as much as possible, Porsche
stipulates detailed rules of conduct. These
apply in particular to construction sites, but
also to the procurement and assembly of ma-
chinery and equipment.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
MORE THAN 14,000 VACCINE
AT THE COMPANY'S
OWN VACCINATION
CENTRES.
Support during the coronavirus pandemic
Porsche's emergency response organisation
dealt in detail with the coronavirus crisis
during the reporting year. It implemented
appropriate measures to protect employee
health. In addition to providing information
to affected internal departments, this also
included communication with public author-
ities. A telephone help desk and a centralised
inbox are used by employees as a point of
contact for all queries relating to the corona-
virus. Employees engaged in administration
activities were able to work remotely for their
own protection. In the course of a 10-week
campaign of vaccinating against COVID-19,
more than 14,000 vaccine doses were ad-
ministered by Porsche's Health Management
division at vaccination centres set up es-
pecially. This service was made available to
employees and their families.
118
Social
119
DOSES ADMINISTERED
Transparent
Ha
The coronavirus pandemic has permanently
changed the Porsche working world, in
particular in indirect areas. Mobile working
has become the norm and the demands
made of the working worlds of the future
have further evolved. Looking ahead, Porsche
is focusing on a healthy mix of on-site and
mobile working. New workspace is being
created on-site on the basis of an increasingly
connected working world. Throughout, the
focus is on people, as it is they who make the
difference. It is therefore especially impor-
tant to the Executive Board and Works Council
that all Porsche AG employees are offered
a perspective in the automotive industry's
far-reaching transformation. Repeatedly high
approval ratings in the Porsche mood baro-
meter indicate that the workforce is very much
on board with this journey. It is particularly
pleasing to note that the external perception
of Porsche as an employer remains highly
positive too. The sports car manufacturer
again ranked highly in numerous surveys con-
ducted among students and young
professionals in 2021.
146
Porsche Gastronomy is also adopting a sus-
tainable approach to equipment, one example
here being the new company canteen for the
Taycan production staff, which went into use
in April 2021. This is equipped with especially
energy-efficient kitchen appliances and
self-cleaning cooking pots. Traditional doors
have been replaced by high-speed doors and
height-adjustable work surfaces result in im-
proved ergonomics. A multifunctional dining
hall concept increases the space used and
also invites the employees to spend time here
outside of the canteen opening hours too, for
example for meetings.
reason for this is the expanded mobile work-
ing options at Porsche. Thanks to Al tech-
nology and a deep learning algorithm, the
needs can now be planned more precisely.
The system draws on past data and also in-
corporates weather data and annual leave
into its forecast.
Porsche Gastronomy is also succeeding in
using artificial intelligence (AI) to reduce
overproduction and food waste. This is espe-
cially important because the number of
meals is fluctuating more and more. A key
Porsche Gastronomy even more sustainable
Porsche Gastronomy continued with its sus-
tainability drive in 2021. For example, the
food selection at the operations in the Stutt-
gart region was made more seasonal and
more regional. The aim is to next reach certi-
fication level 2 of the Baden-Württemberg
quality label. The network of regional sup-
pliers is being expanded to this end. Together
with regional partners, production methods
and processes were developed to guarantee
needs-based and high-quality supplies. For
example, in addition to locally sourced fruit
and vegetables, beef and pork, Porsche
Gastronomy will henceforth also source its
fries and poultry regionally.
Porsche strives to ensure that its staff can
achieve a work-life balance. Employees re-
ceive support from a wide variety of different
measures and options. Local cooperation
partners ensure that regular childcare places
are available in nurseries close to the com-
pany's sites, for example. In emergencies, add-
itional childcare places are available at day
care centres in Stuttgart. Parents can also
take their children to work for a few hours and
make use of the Kids Box, a mobile playroom
containing all kinds of play opportunities.
Another special service is the programme for
the children of employees that runs through-
out the school holidays. This helps families
get through the six-week summer holiday
period. With its family service, Porsche also
offers extensive, free and individually tailored
advice and support on all aspects of family
life, in particular for parents-to-be and in the
area of care for the elderly.
Work-life balance
Cybersecurity training programme
Digital transformation is changing the auto-
motive industry at an immense pace. The new
virtual world is increasing the cybersecurity
requirements. Porsche is responding to this
with its own Cyber Security Management
Professional for Automotive (CSMPA) training
programme in cooperation with the Institute
for Security and Safety (ISS) at Brandenburg
University of Applied Sciences. The develop-
ments in the digital sphere go hand in hand
with the transformation of the automotive
industry in the direction of more connected,
semi-autonomous and autonomous driving.
But it is not only the vehicles themselves that
are connected and digitalised - so too are the
business processes and vehicle production.
This is changing the company's vulnerabil-
ities, be it social engineering, ransomware or
industrial espionage. The programme is also
in response to changes in legislation such as
those caused by the new UNECE regulation
UN R155 on cybersecurity in automotive de-
velopment and Germany's IT Security Act 2.0.
The latter now also takes companies with a
special economic focus into account. Due to
the high level of interest shown, Porsche is
now opening up the programme to partici-
pants from other Volkswagen Group brands
and companies too.
is responding to the massive
expansion of the Zuffen-
hausen plant in recent years.
Thirty-five experienced
full-time firefighters were
recruited for the service.
With the Porsche Stuttgart
Fire Service, the company
New site fire service in Zuffenhausen
Stuttgart's professional fire department suc-
cessfully attended to the Porsche site in
Zuffenhausen for many decades. In Septem-
ber 2021, the newly created Porsche Stutt-
gart Fire Service assumed responsibility for
this. Thirty-five experienced full-time fire-
fighters were recruited for the service. These
new Porsche employees all have professional
fire department and rescue service training.
A dedicated fire station for the site fire ser-
vice will be built in a central location at the
plant grounds in Zuffenhausen between now
and 2023. Until then, an interim building at
Plant 2 will serve as the crew's base. With
the Porsche Stuttgart Fire Service, the com-
pany is responding to the massive expansion
of the Zuffenhausen plant in recent years.
The increased use of high-voltage compo-
nents as the model range is increasingly elec-
trified likewise means a number of specialists
are needed who can be given specific train-
ing. The site fire service is the first fire de-
partment in Germany to be equipped with a
modular training simulator for this purpose.
The firefighters are also being provided with
new work clothes that will offer them the best
possible protection during these special inci-
dent calls. In addition to standard fire protec-
tion, the clothing offers additional protection
from thermal hazards in the event of electric
arc faults.
8000
SCHOOL HOLIDAY PROGRAMME FOR THE CHILDREN OF EMPLOYEES
145
Employees, society, sports and communications
144
was established in 2021 with the 42 pro-
gramming school in Wolfsburg and Heilbronn.
The aim of this cooperation is to achieve
close coordination of science and practice in
relation to digitalisation already at the studies
stage. Porsche also awards five Women in
Tech scholarships at the Heilbronn site and it
has another scholarship programme for com-
puter science students at RWTH Aachen
University, which was extended by two years
in 2021. Every year, 15 students from the
computer science, media informatics, soft-
ware systems engineering and data science
courses receive a scholarship. International
university contacts are also carefully main-
tained and continually developed. One such
example is the permanent cooperation with
the IT chair at Babeş-Bolyai University in
Cluj, Romania. Supporting young talent does
not just begin at university, however. Since
2001, the best high-school leavers of the
year in Baden-Württemberg in the core sub-
jects of mathematics and physics/technol-
ogy have been awarded the Ferry Porsche
Award. In 2021, 326 young people received
the coveted award. Following a prize draw,
six of them were awarded an additional one-
year scholarship.
When it comes to promoting young talent,
Porsche continues to back partnership-
based cooperation with relevant higher edu-
cation institutions and organisations. Ex-
amples include its cooperation with Formula
Student Germany and the partnership with
the business information systems and indus-
trial engineering courses at the Karlsruhe In-
stitute of Technology (KIT). A cooperation
Promoting young talent
on the topics of CO2 reduction, species
conservation, electrification, education and
variety of views. The Porsche employees'
passion evidently goes above and beyond
sports car construction. They are just as
dedicated to, for example, the company's
own biotopes, its bee colonies which pro-
duce the company's own Turbienchen honey
and a rock dust facility which is helping to
turn car paint residues into cement. Like the
multi-award-winning predecessors, the
Sustainable Career clips are all about authen-
ticity and spontaneity. They depict actual
daily life and do without perfectly staged
lead characters voicing text blocks which
are learned by rote. They are human and not
everything is perfect right away.
In keeping with the times, the campaign
publication is digital. It comprises five films
Sustainable employer campaign
Porsche launched a digital employer branding
campaign called Sustainable Career in 2021.
This focuses on employees who are reducing
the company's environmental footprint in
a variety of ways, driven by the shared vision
and goal of making Porsche the most sus-
tainable brand for exclusive and sporty mo-
bility. The message of the entertaining clips
is that the employees take the topic seriously,
but don't take themselves too seriously. The
employer campaigns intentionally pick up
on topics that outsiders wouldn't initially
associate with Porsche. The new campaign
is a textbook case here as it is founded on
the huge significance of sustainability to the
company. Porsche is the first automobile
manufacturer to have set itself the goal of
being balance-sheet CO2-neutral across
the entire value chain by 2030. This calls
for co-workers who turn these visions into
a reality with a great deal of dedication and
pioneering spirit. The Sustainable Career
campaign expresses this - it is people with
their variety of ideas that make the difference.
COOPERATION WITH THE 42 PROGRAMMING SCHOOL (STOCK IMAGE)
Porsche's high level of attractiveness as an
employer is also demonstrated by its high
number of applicants. The Porsche Group re-
ceived more than 100,000 applications in
2021. Its staff turnover rate likewise remains
low at 0.6 per cent.
Porsche remains a highly regarded employer.
The company again scored very highly among
students in all the relevant employer rankings
in 2021. In the Universum Student Survey,
Porsche was again named the most attractive
employer for engineers in 2021. As in the pre-
vious year, it achieved top rankings for eco-
nomics and business administration too. In
the Trendence Institute's annual student sur-
vey, Porsche improved its scores across all the
target groups engineering, economics and
business administration, and IT/computer
science. It was the same picture among pro-
fessionals, with the Universum Young Profes-
sionals Survey once again ranking Porsche at
the top. In the individual categories, the com-
pany defended its first place in engineering.
The sports car manufacturer also knocked
Google off the top spot for economics and
business administration. According to Trend-
ence too, the popularity of Porsche as an em-
ployer among young professionals remains
strong Porsche is second in the overall
ranking across all areas. And last, but not
least, the premium manufacturer was again
voted the most attractive employer in the
automotive industry in a study conducted
among students and future graduates by Auto-
mobilwoche and the Institute of the Automotive
Industry (IfA), reaping it the Automotive Top-
Career Award 2021.
+2
Porsche is a highly regarded employer
NEW SITE FIRE SERVICE IN ZUFFENHAUSEN
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
Lander
BW Bank
148
Porsche made a point of
mitigating the consequences
of the coronavirus pandemic
once again in 2021.
For example, the regional
sports federations in Baden-
Württemberg and Saxony
were awarded a total of
339,000 euros.
standard requirements for funding projects
are considered. The aim is for the funds for
CSR sponsorship and donations to be used
in accordance with the law and solely in the
interests of the company. In total, Porsche
made donations to approximately 200 indi-
vidual projects in 2021. There were also
extensive activities in the areas of CSR and
cultural sponsorships. The sports car manu-
facturer is especially keen to repeatedly
make first-class cultural events accessible
to the general public. There were live
streams of the Stuttgart Ballet of Beet-
hoven's ballets in the year under review,
for example. The charitable Ferry Porsche
Foundation was also funded.
a fixed plan with its social engagement. Cul-
ture, sports, education, the environment and
social affairs represent the five pillars of
Porsche's support measures. The "Donations
and CSR Sponsorship" Group directive de-
fines all the Porsche processes, responsibil-
ities and approvals. These ensure that the
a central element of the Porsche sustainabil-
ity strategy within the Partner to Society area
of action. Once again in the year under review,
the company helped to mitigate the conse-
quences of the coronavirus pandemic. Among
other things, the regional sports federations
in Baden-Württemberg and Saxony were
awarded donations to maintain the clubs'
sports activities. The sports car manufacturer
also responded to the flood disaster in the
summer, particularly supporting the Aktion
Deutschland Hilft e. V. association with dona-
tions. In addition to helping in the event of
unforeseen occurrences, Porsche pursues
Porsche has always exercised its social re-
sponsibility and has also enshrined this as
Culture, sports, education, the
environment and social affairs
represent the five pillars of
Porsche's support measures.
experience might mobilise undreamt-of
strength in the children and their families
as they battle their illnesses. More than
500,000 children around the world have
benefited from this to date. Based on the
fantastic level of involvement in the Virtual
Run, Porsche promptly increased its dona-
tion to 200,000 euros. The participants used
the Pumatrac app to log their running per-
formance and could freely select their pace,
frequency and distance. As a little incentive,
the runners were able to tackle three legend-
ary racetracks - Le Mans (13,626 metres),
the Nürburgring Nordschleife (20,830
metres) and the 72-kilometre-long Targa
Florio and were allowed to complete
the courses in stages. A number of wishes
have since been fulfilled. 16-year-old
Fasil was able to engage in a secret mission
with Porsche Motorsport and follow the first
test laps of a future racing car live. In
addition, Porsche works driver Richard Lietz
demonstrated the racing line to Fasil,
who has muscular dystrophy, on a virtual
racetrack in the race simulator.
Racking up metres for a good cause
More than 2,300 Porsche employees
from 34 countries racked up a total of
67,559 kilometres for a good cause in the
first Porsche Virtual Run held from 17 Sep-
tember to 3 October 2021. Ahead of the
run, Porsche pledged to make a donation of
50 cents per kilometre run to the inter-
national Make-A-Wish Foundation, which
aims to fulfil the dearest wishes of children
in difficult life situations. This goes hand
in hand with the hope that such a positive
Coronavirus aid for sports federations
Porsche made a point of mitigating the con-
sequences of the coronavirus pandemic
once again in 2021. For example, the regional
sports federations in Baden-Württemberg
and Saxony were awarded a total of
339,000 euros, which they passed on to 113
carefully selected clubs in the form of individ-
ual donations of 3,000 euros each. The clubs
that were supported focus in particular on
youth work, integration or inclusion and of-
fered their junior sports enthusiasts alterna-
tive opportunities during the pandemic. It
made no difference whether the beneficiary
clubs engage in recreational or competitive
sport. A total of 38 sports were supported. In
this way, the role of sports as an inclusive
force in society in particular for children and
young people too was recognised.
The flood disaster in western Germany
touched Porsche personally too as the
region around the Nürburgring was heavily
affected. Porsche has maintained a special
relationship with the people there for
decades. Friendships and partnerships
have grown on the basis of motorsport.
Porsche Motorsport therefore organised
an initial group of volunteers in a matter
of hours who provided emergency gener-
ators, tools and clothing. The sports car
manufacturer additionally supported the
Aktion Deutschland Hilft e. V. coalition
with a million-euro donation. The funds
went towards immediate aid for the flood
victims and strengthened the work of the
various rescue associations in the affected
areas, where the coalition helped to search
for missing people, organised accommo-
dation, assisted with clean-ups and se-
cured dangerous areas. The auxiliary staff
also helped with medical care, sourced
food and arranged catering for the emer-
gency services. Porsche additionally called
upon its employees to make private dona-
tions. Porsche Deutschland GmbH and
its dealer organisation likewise donated
750,000 euros to the Aktion Deutschland
Hilft e.V. coalition. An additional 50,000 euros
were donated by MHP Management- und
IT-Beratung GmbH.
Support for flood victims
SUPPORT PROJECTS
euros donated
200,000
MOMENTS FROM THE PORSCHE VIRTUAL RUN 2021
IN 201
kilometres run
67,560
co-workers in 35 markets
around the world
2,324
SOCIETY
147
Employees, society, sports and communications
aden
SUCCESSFUL VACCINATION CAMPAIGN
Porsche again scored
highly in employer rankings.
Porsche's high level of
attractiveness as an
employer is also
EMPLOYEES
Leadership Lab on a feedback culture
Sachsenheim
539
Other sites
in Germany
897
at the sites in Germany
Employees
CHANGING WORKING WORLDS
141
Employees, society, sports and communications
Lab in 2021. Here, up to 100 Porsche em-
ployees jointly hone their mindset, in other
words how they think and their inner atti-
tudes. In the course of six weeks, they learn
how to incorporate learning and change into
their day-to-day work, all with the aim of
shaping change together in times of trans-
formation. The Online Learning Lab is a vir-
tual space where employees can grow with
others both personally and professionally and
enhance their own learning aptitude and
pace. The participants are taught methods
and hacks that make it easier to incorporate
learning into their day-to-day work. They are
also equipped with the tools they need to be
better able to meet strategic requirements.
It is all about a growth mindset (will), learn-
ability (ability) and self-leadership (action).
This is all directly related to Strategy 2030 as
the strategy includes many new topics that
all the Porsche employees will have to ad-
dress in the future. Acquiring new knowledge
and new skills and being able to deal with
change are therefore part and parcel of day-
to-day business.
Porsche launched an innovative internal
learning format called the Online Learning
Change is occurring faster than ever. Porsche
sees this development as an opportunity.
The company assists its employees in per-
manently keeping their knowledge up to date
and developing new skills. This is important
in particular with the advancement of digital-
isation in mind as it radically reduces the half-
life of knowledge and skills. Porsche believes
in lifelong learning and an active approach to
change. This offers the employees a unique
opportunity to learn something new and, in so
doing, develop themselves. Learning space
plays a crucial part in Porsche evolving from
a knowing to a learning organisation. The
Porsche Learning Lab stands on the one hand
for the concept of a physical learning room
where the sports car manufacturer creates
space for experimentation, networks people
and gives them guidance on their personal
development. And with the integrated offer
of a virtual studio, the employees also have
the option of recording and sharing what they
have learned. Virtual rooms are also created,
assisting the employees in developing learn-
ability and a growth mindset.
Incorporating change into day-to-day
business
During its fifth Diversity Days, Porsche again
sent a clear message of backing tolerance
and of being against exclusion and discrimin-
ation. During a themed week around German
Diversity Day in May 2021, 21 digital dia-
logue formats addressed the value and op-
portunities of diversity. A diverse project
team also had the idea of a diversity 911
marked with messages and facts about di-
versity at Porsche. In adding their signatures
to the vehicle at the beginning of the Diver-
sity Days, the Porsche Executive Board and
Works Council affirmed their unconditional
backing of diversity and tolerance. Diversity
was also a focal issue during the Sustain-
ability Festival held in October 2021, illus-
trating the importance of diversity of views
as a driver of innovation and a future success
factor. New points of view were also the
focus of Porsche hilft in the year under
review. This placement platform lists volun-
tary engagement options and gives Porsche
employees the opportunity to broaden
their perspectives by enabling them to see
beyond their own noses.
Clear commitment to diversity
and tolerance
Porsche Ausbild
DIVERSITY OF VIEWS IS A KEY DRIVER OF INNOVATION FOR PORSCHE
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
140
START OF VOCATIONAL TRAINING AT PORSCHE
Safeguarding of Group company sites
In 2020, Porsche AG adopted a pioneering
site safeguarding strategy under the heading
"Tradition. Transformation. Future.". In
2021, other Group companies - Porsche
Deutschland GmbH, Porsche Engineering
Group GmbH, Porsche Engineering Services
GmbH, Porsche Financial Services GmbH
and Porsche Leipzig GmbH - followed suit
with their own site agreements. The agree-
ments safeguard the ability of Porsche AG
and its Group companies to compete and
each include employment protection for the
core workforce up to 2030. The agreements
cover a 10-year period. They are founded on
numerous measures that will boost flexibility
and productivity and sustainably secure
profit. At the Leipzig site, the Executive Board,
management and Works Council also de-
cided to reduce the working week from
38 to 35 hours in two steps up to 2025.
a bonus of 7,850 euros for financial year
2020 in April 2021. In this way, the company
recognised the particular commitment
of the workforce in a difficult environment.
Special payment based on new method
Porsche determined the special payment for
employees covered by collective pay agree-
ments on the basis of the new calculation
method for the first time. Porsche employees
faced particular challenges in financial years
2020 and 2021 due to the ongoing corona-
virus crisis. This was due among other things
to the existing supply bottlenecks. The com-
pany succeeded in keeping its profit high
year-on-year thanks to systematic crisis
management and the considerable efforts of
the entire workforce. The calculation allows
the Porsche workforce to fairly and consist-
ently participate in the success of the busi-
ness. In view of this and based on the per-
formance indicators of return on sales (ROS)
and return on investment (ROI), Porsche paid
142
demonstrated by its high
number of applicants.
Sights firmly set on future requirements
on the collaboration of all age groups.
The Health Management department is also
responsible for medical advice within the
company's Crisis Management Team during
the pandemic. It serves as a point of contact
for a wide variety of bodies and has been
operating a medical hotline in relation to
COVID-19 since March 2020. The Health
Management department additionally assists
the local health authorities with identifying
the contacts of people with coronavirus. It
offers PCR tests and rapid antigen tests and
initiates the necessary measures in accord-
ance with the applicable occupational health
and safety regulations. It also ensures that
risk groups within the company (the chron-
ically ill, pregnant women) are protected. At
events and during test drives, the Health
Management department is the central con-
tact point when it comes to determining the
necessary hygiene measures and ensuring
protection from infection.
Again in 2021, the coronavirus pandemic was
a key issue for Porsche's Health Management
department. The company significantly con-
tributed to Germany's level of vaccination
being increased with three vaccination centres
in Zuffenhausen, Weissach and Leipzig. In
total, more than 14,000 vaccine doses have so
far been administered to Porsche employees
and their families thanks to the vaccination
campaign. The campaign's success was down
to a cross-departmental project team con-
sisting of around 100 Porsche employees.
Successful vaccination campaign
PORSCHE IS A HIGHLY REGARDED EMPLOYER (STOCK IMAGE)
143
+1% 7
Year-on-year comparison
Leipzig
4,457
31,690
32,661
33,089
3,571
Ludwigsburg
Schwarzenberg
466
Bietigheim
Employees, society, sports and communications
2020
2019
2021
Total workforce in Germany
15,376
Zuffenhausen
982
6,801
Weissach
The office working world is rapidly changing.
Whereas individual offices and clearly desig-
nated meeting rooms once dominated,
what's needed these days in an increasingly
connected working world is collaboration
space and agile project space. This will, in
particular, make the increasing project work
across mixed teams from different depart-
ments easier. With the new Porsche working
worlds, the company is readying itself for this
cross-functional collaboration - and therefore
also for the needs of Generations Y/Z/O. The
Human Resources department blazes a trail
for the Porsche working worlds. The various
Human Resources divisions have been con-
solidated in a central location. Individual offices
have been entirely eliminated, including at
the Executive Board level. And due to the ex-
panded mobile working options, employees
will henceforth no longer have a dedicated
workstation. Instead, the employees have the
option of freely selecting an appropriate work
opportunity based on desk sharing - in project
and innovation spaces or in silent working and
meeting rooms. Going forward, this will con-
siderably reduce the company's space require-
ments and will therefore make a key contri-
bution to Porsche AG's sustainability strategy.
Changing working worlds at Porsche
The sports car manufacturer has pooled vari-
ous transformation initiatives under the
heading of Porsche Workforce Transformation
(PWT) and is orienting itself even more
strictly to the requirements of the future. In
times of far-reaching change within the
automotive industry, PWT is proactively
managing the Porsche employees' develop-
ment. The primary objective is to get the
workforce on board with this change and to
offer the Porsche employees sustainable
prospects. This is achieved by transparently
presenting the various transformation fields
and based on the clear desire to occupy
future fields with internal candidates
wherever possible, backed by intensive pro-
fessional development offerings. To this end,
Porsche has, among other things, founded
a Digital Academy, whose purpose it is to
strengthen people's digital skills as part of
transformation qualification. The sports car
manufacturer will not lay off any staff during
transformation and will continue to focus
DREIHUNDERTUEUU-U339 000-
UUDDREIBIGTAUSEND Stuttgart
Landes sportbund Sachsen 15.02.2021
Landessportverband
Soden-Württemberg
Pring he T
Porsche AG
OLY
Their joint projects include the Leipzig
Quarter-Finals, an annual tournament for
junior players. After a one-year hiatus due to
the pandemic, this was able to take place
once again as a hybrid event format involving
digital preliminary rounds and the final
day held on the football pitch. Once a year,
Porsche additionally names the club's best
junior team the Porsche Talent Team. The
concepts of inclusion and integration feature
in the projects too, for example in the form
of an inclusive football school.
youth partner. At its production site in
Saxony, Porsche primarily focuses on social
engagement. The club and the company have
set themselves the goal of getting children
and young people excited about team sports,
making it easier for children from more so-
cially disadvantaged families to access club
sport and offering talented junior football
players targeted support.
The Turbo for Talent youth development pro-
gramme is being continued in Leipzig. The
parties involved have extended the cooper-
ation agreement concluded in 2014 for a fur-
ther three years up to 30 June 2024. As such,
Volkswagen will remain the club's mobility
partner and Porsche will remain its strategic
Porsche and Volkswagen extend partnership
with RB Leipzig
Porsche
Turbo für Talente.
Porsche Jugendförderung.
FINAL DAY OF THE LEIPZIG QUARTER-FINALS
154
RB LEIPZIG, THE WINNERS OF THE PORSCHE FOOTBALL CUP 2021
Sieger
Porsche Fußball Cup 2021
Porsche Jugendförderung
Turbo für Talen
"FC Erzgebirge Aue stands for tradition and
is a regional beacon with a large and loyal fan
base. The club allows children and young
people to develop personally through sports.
We are therefore delighted to be able to
support FC Erzgebirge Aue as another club,"
says Lutz Meschke, Deputy Chairman and
Member of the Executive Board responsible
for Finance and IT at Porsche AG.
FC Erzgebirge Aue e.V. has been an official
partner club of the sports car manufacturer
since 1 July. This involved Porsche
acquiring the naming rights for the Porsche
Kumpelschmiede boarding school and for
the youth training centre, which now goes
by the name of Porsche Kumpelschmiede -
das Nachwuchsleistungszentrum. As such,
the sports car manufacturer is now involved
in another site for junior sportspeople.
Porsche Werkzeugbau GmbH Schwarzen-
berg, which is a wholly owned subsidiary
of Porsche AG, is located not far from the
Erzgebirgsstadion stadium.
FC Erzgebirge Aue new to Porsche's youth
development
Porsche has been supporting
the youth work of sports
clubs for years with numerous
partnerships run under the
motto of Turbo for Talent.
One particular focus is how
to balance school, sports and
working life.
in the area of football was expanded in
summer 2020 with the addition of Borussia
Mönchengladbach, and this was followed by
Erzgebirge Aue in 2021.
Leipzig, Porsche works with RB Leipzig (foot-
ball). Porsche's youth development network
The Germany-wide CSR programme focuses
on the Porsche sites in Stuttgart and Leipzig.
Its partner clubs in Baden-Württemberg
are SC Bietigheim-Bissingen Steelers (ice
hockey), SV Stuttgarter Kickers, SG Sonnen-
hof Großaspach (football) and the Porsche
Basketball Academy in Ludwigsburg. In
Sport has been in the Porsche brand's
DNA since the beginning. It represents
team spirit, passion, fairness and respect
- in other words, values which are also
practised by the sports car manufacturer.
Porsche is aware of its social responsibil-
ity and imparts these principles to young
people. The company has been supporting
the youth work of sports clubs for years
with numerous partnerships run under the
motto of Turbo for Talent. One particular
focus is how to balance school, sports and
working life. The programme also promotes
social aspects and turning talented individ-
uals into personalities.
YOUTH DEVELOPMENT IN SPORTS
153
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
152
Start-up contest for school pupils
Jugend gründet is a business plan and simu-
lation contest organised by the Steinbeis
Innovation Center Business Development at
Pforzheim University. Last year, more than
3,000 trainees and school pupils from year
10 and above from all over Germany submit-
ted their start-up proposals. Porsche has
been the main sponsor of the contest since
2016 and also awarded its special Digital Fu-
ture prize for the second time in 2021. The
winners were Nightlight UG with their intelli-
gent reflector post Light Pole. The reflector
post picks up the light from approaching ve-
hicles and lights the road for 15 seconds if
needed. The jury was convinced, saying that
the inventors had picked up on an important
societal need the need for road traffic safety.
What is especially impressive is that the
idea has huge further development potential.
For example, the reflector posts which are
currently self-sufficient could also be turned
into smart reflector posts. They could collect
data and issue warnings, for example if there
is black ice, if animals are crossing or if some-
one is driving the wrong way.
Porsche Turbo Awards for junior
sportspeople
Porsche regularly supports academic edu-
cation in Germany by working with higher
education institutions. For example, the
Dr. Ing. h.c. F. Porsche AG Chair of Strategic
Management and Digital Entrepreneurship
was created at the HHL Leipzig Graduate
School of Management in 2013. Up to the
end of 2021, more than 2,500 students had
already benefited from the courses, seminars
and projects on offer. The company also sup-
ports teaching, research and the continuous
development of vehicle engineering at
Esslingen University of Applied Sciences.
The Porsche Turbo Awards have been rec-
ognising talented individuals with the best
sporting development, very good school
achievements and the greatest social en-
gagement since 2016. In the year under re-
view, a total of 18 boys and girls from the six
partner clubs received awards. The Porsche
Turbo Awards were presented at the Porsche
Museum by Sami Khedira, former profession-
al football player and an ambassador for
Porsche's youth development: "Professional
youth development that takes somebody
from being a junior player to a professional
sportsperson is incredibly important. Unfor-
tunately, not all young people have the same
opportunities and the same good fortune
as I had. I therefore think the way in which
Porsche nurtures talented junior players and
offers children and young people the opportu-
nity to develop personally through sport is
very good and also important."
The first Porsche Football Cup was held on
the Stuttgarter Kickers grounds in Degerloch
in early September. The tournament for the
Porsche partner clubs' U15 teams was held
for the first time in 2021 and is expected to
be hosted annually by a different partner going
forward. RB Leipzig's U15 team secured the
inaugural win at Stuttgart's ADM-Sportpark
in glorious sunshine and perfect football
weather. The Leipzig team beat Borussia
Mönchengladbach's junior players in the final
in front of around 300 spectators.
157
Employees, society, sports and communications
STUTTGART BALLET PRESENTS BEETHOVEN BALLETS ONLINE
156
In 2021, Porsche Deutschland expanded its
engagement in the area of cultural sponsor-
ship by becoming a Principal Sponsor of one
of the world's newest and most significant
concert halls. The Elbphilharmonie delights
fans of culture from all over the world. In July
and August 2021, Porsche presented a series
of concerts called Elbphilharmonie Sommer.
This featured something to cater to all tastes,
from great classics and foot-tapping jazz to
silent film concerts - played in some cases
by some of the world's best junior orchestras.
"Porsche and the Elbphilharmonie both stand
for breathtaking performance, a passion for
aesthetics and design, and unforgettable mo-
ments," says Alexander Pollich, Chief Execu-
tive Officer of Porsche Deutschland.
Partnership with the Elbphilharmonie
Porsche and Leipzig Opera House have
entered into a partnership - in summer 2022,
the cultural institution will invite Wagner afi-
cionados from around the world to attend the
Wagner 22 festival. All of the German com-
poser's operas will be performed in the space
of the three-week event. Joint planning for
this major celebration has already begun and
Porsche is supporting the event as a main
sponsor. The partnership will allow Wagner
fans to see two performances for free - there
are plans for public broadcasts of the works
Tannhäuser and Der fliegende Holländer in
Augustusplatz square.
Wagner 22 festival - free opera
a Principal Sponsor of this iconic concert hall
in the port of Hamburg since July 2021.
to date. Porsche Deutschland has been
In addition to its partnerships with the
Stuttgart Ballet and Leipzig's Gewandhaus
Orchestra, the premium manufacturer's
support of the Elbphilharmonie concert hall
is one of its most extensive engagements
is for as many people as possible to be able
to enjoy culture for free. "We at Porsche see
ourselves as a partner to society," says
Andreas Haffner, Member of the Executive
Board responsible for Human Resources.
"Our taking culture to the general public is
an important aspect of this. Because we
firmly believe that a free society and culture
are inextricably linked."
The sports car manufacturer has been sup-
porting cultural projects for years. The aim
CULTURAL SPONSORSHIP
As the main sponsor of the Stuttgart Ballet,
the sports car manufacturer made an extra-
ordinary event possible in spring 2021 - the
Beethoven Ballets at the Schauspielhaus the-
atre. The dance homage to Beethoven had to
be cancelled in 2020 due to the coronavirus
pandemic. But in 2021, the ballet company
paid tribute to this great composer by live
stream to belatedly mark his 250th birthday.
It was a dance affair in a virtual age: "We will
make cultural events accessible to the gen-
eral public in the future too - be it virtually or,
hopefully soon, in person once again," says
Andreas Haffner, Member of the Executive
Board responsible for Human Resources at
Porsche. In addition, Stuttgart's John Cranko
School celebrated its 50th anniversary last
year. Porsche contributed 10 million euros to
the rebuilding of one of the world's most re-
nowned ballet schools. The funding was pro-
vided through a foundation that the sports
car manufacturer established in 2013 to-
gether with the city of Stuttgart.
Stuttgart Ballet presents Beethoven
Ballets online
The Beethoven Ballets at
Stuttgart's Schauspielhaus
theatre were broadcast live
this year due to the corona-
virus pandemic. Porsche
made this extraordinary event
possible as the main sponsor
of the Stuttgart Ballet.
The sports car manufacturer Porsche an-
nounced that it would remain by the side of
the Leipzig Opera Ball on the evening of
the ball in October 2021. This engagement
focuses on supporting the greater good.
Porsche has been presenting the dance
evening since 2013 and, in this context, it
donates the main prize in the Opera Ball
tombola in the form of a vehicle. The winner
in the year under review was presented with
a 718 Boxster in Racing Yellow with a blue
top and black interior. In choosing these col-
ours, the company gave a nod to Leipzig's
coat of arms, thereby underscoring its affili-
ation with the region. As is tradition, all the
tombola proceeds went to the foundation
Leipzig hilft Kindern, which supports projects
for children and young people in the region.
The beneficiaries included the Wunderfinder
project of the foundation Stiftung Bürger für
Leipzig, which arranges the educational spon-
sorship of nursery schoolchildren in the east
of Leipzig and in the Grünau district. Financial
support was also given to the association
Bemmchen-Leipzig e.V.
Partnership with the Leipzig Opera Ball
extended again
PORSCHE DEUTSCHLAND HAS BEEN A PRINCIPAL SPONSOR OF THE ELBPHILHARMONIE IN HAMBURG SINCE JULY 2021
DDD DD DE DEDDE
DODADDADE DADO
AND DO DODD DOO
155
Employees, society, sports and communications
In addition to sporting competition, the
Porsche Football Cup was also about a good
cause, with Porsche donating 500 euros for
every goal scored as part of the Goals for
Charity campaign. A total of 18,000 euros
was donated on the basis of 36 goals scored.
The money went to two Stuttgart-based
sports and activity projects for children and
young people Sport VereinT and GESund
& GEStärkt. The sports car manufacturer
upped the donation amount to 25,000 euros.
Premiere of the Porsche Football Cup at
Stuttgart's ADM-Sportpark
Funding of endowed chairs
CSR SPONSORSHIP
Porsche Cars North America is involved in
the Goodr initiative - as part of its CSR
sponsorship activities, groceries are handed
out to people in precarious life situations at
pop-up stores in Atlanta and Los Angeles.
The impacts of the pandemic entail millions
of unemployed people in the USA. Therefore,
there are progressively more families that
lack the basic necessities such as food.
ORN
BE
NEW DRINKING WATER FOREST - PORSCHE SUPPORTS THE PLANTING CAMPAIGN
150
ANDREAS HAFFNER HANDS OVER THE KEYS FOR FIVE NEW MOBIFANT PLAYBUSES
Spielmobil
BACKSIDE
eue
Millkomme
n0BS
nobi
Stuttg
13725
PUDARO
traße 21
htung der
t.de
仔
Supp_optimal: meals served to those in need
Porsche provided the Supp_optimal project
of the Bürgerstiftung Stuttgart organisation
with 250,000 euros in funding in 2021. From
November 2020 to June 2021, Supp_optimal
served more than 12,000 meals to people
in precarious circumstances in Stuttgart
city centre. As the needs are even greater in
other districts, the Porsche donation has
now been used to create temporary serving
stations there. The sum donated comes
from the Porsche employees, with Porsche
Gastronomy intentionally not passing the
temporary reduction in VAT on to the guests
as price reductions. The Executive Board
and the Works Council instead chose
to spend Porsche Gastronomy's additional
revenue on serving food to those in need.
The schools are free to choose what litera-
ture they wish to buy. The aim of this support
for reading clubs is to promote equal oppor-
tunity children should be granted educa-
tion opportunities irrespective of their back-
grounds or school conditions.
example, books, magazines or digital media.
Stiftung Lesen promotes equal opportunities
Together with the foundation Stiftung Lesen,
Porsche extended the operation of five read-
ing clubs for another three years in the year
under review. The sports car manufacturer
supports a total of 12 reading clubs in
Baden-Württemberg and Saxony. Schools
use the funds among other things for room
fittings and equipment. Porsche also helps
with the purchase of reading materials, for
a Porsche donation in the amount of
230,000 euros to buy five new Volkswagen
vans. These serve as playbuses that go by
the name of Mobifant for children up to the
age of 12. The Mobifant playbuses are
equipped with all kinds of movement games.
Qualified educators take the playbuses to
places where children have especially limited
space to play. The Mobifant playbuses have
been a firm fixture in Stuttgart for decades.
With the old vehicles having reached the end
of their days, the donation safeguarded the
long-term existence of this social institution.
Stuttgarter Jugendhaus Gesellschaft used
New playbuses put into operation
The Mobifant playbuses
have been a firm fixture in
Stuttgart for decades. With
the old vehicles having
reached the end of their days,
the donation safeguarded
the long-term existence of
this social institution.
149
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
PORSCHE AG DONATED A TOTAL OF 339,000 EUROS TO REGIONAL SPORTS FEDERATIONS
Porsche plants new drinking water forest
Five hundred hornbeams and 500 small-
leaved lime trees spread across a hectare in
Eberdingen-Hochdorf (Ludwigsburg district)
make up a new mixed deciduous forest.
The planting campaign of the organisation
Trinkwasserwald e. V. was conducted in
October and made possible by a Porsche AG
donation. What made this special was that
the young trees were planted with the active
assistance of 50 Porsche Procurement em-
ployees who volunteered for this good cause
as part of the Porsche hilft programme.
In collaboration with Trinkwasserwald e.V.,
Porsche has created a total of 14 hectares of
new mixed deciduous forest in the Stuttgart
region and in Leipzig since 2017. The major
advantage of deciduous forests is that they
generate 800,000 litres per hectare more
groundwater than coniferous forest mono-
cultures on average - and will be doing so
every year for generations. The joint engage-
ment of Trinkwasserwald e.V. and Porsche
generates more than 11 million litres of
drinking water a year. This is enough to sup-
ply 11,000 people with drinking water for
life. On average, a person needs 1,000 litres
of drinking water a year.
families in marginalised neighbourhoods,
provides housing in areas of extreme poverty
and also offers educational programmes. The
donation made in the reporting year will be
used to fund at least 50 houses in 14 Latin
American countries.
Porsche Latin America has been working with
the charitable organisation Un Techo since
2012. This Latin American non-governmental
organisation works to help socially vulnerable
Through its CSR campaign Porsche Do
Dream, Porsche Korea aims to open up new
opportunities and prospects to disadvan-
taged children and young people. One part
of this programme is Porsche Dream Up,
a scholarship initiative for particularly talent-
ed young people in the fields of art and
sports. Further, Dream Playground creates
play opportunities inside buildings. Other
projects under this initiative include Porsche
Dream Circle for environmental education
in schools, Bee'lieve in Dreams, a honeybee
project for greater biodiversity in Seoul and
Smart Traffic Safety Solution for Children.
Porsche and its sales subsidiaries are in-
volved in projects all over the world. Porsche
China has been running the Dealer CSR
Fund since 2018, supporting local projects
throughout China. The project proposals
are submitted by Porsche dealers and im-
plemented in collaboration with non-profit
organisations. Over the past four years, al-
most 200,000 people have been supported
by more than 20 initiated projects. In 2021,
for example, Porsche China supported the
Orphan Care Project and the Rural Students
Reading Project.
International commitments
ACES FOR CHARITY -60,000 EUROS FOR A GOOD CAUSE
Taycan turbos ross Turismo
Porsche and its sales subsidiaries
are involved in projects all over
the world. For example, Porsche
supports socially vulnerable
families in marginalised neighbour-
hoods together with the Latin
American organisation Un Techo.
PORSCHE HAS BEEN WORKING WITH THE ORGANISATION UN TECHO SINCE 2012
TECH
PINTATON
ECHO
have evolved to complement the existing
training methods, promoting people's learn-
ing abilities in entirely virtual or hybrid for-
mats. Among others, the 150 new Porsche
employees who met in a virtual meeting in
September ahead of the start of their training
or studies were able to experience this.
PINTA
TECHO
PINTATON
TC
Porsche has been supporting the non-profit
association Weihnachtsmann & Co. for
46 years. Once again in 2021, it donated
10,000 euros for the funding of charitable
facilities and organisations in the Stuttgart
region. The cheque presentation is usually
complemented by voluntary work by the
Porsche trainees at the Weihnachtsmann
& Co. sales stand at the Stuttgart Christmas
market but the coronavirus pandemic pre-
vented this again. The donation first and fore-
most benefits the repair station of the organi-
sation. Here, children and young people are
given guidance by experienced and trained
voluntary helpers and learn how to repair
items such as bikes, toasters and cupboard
hinges. Space was created and workplaces
were equipped with tools for this. Through its
work, the repair station above all supports
children and young people from disadvan-
taged backgrounds. The aim is to foster their
self-confidence through success.
Fostering self-confidence
60,000 euros to the Aces
for Charity campaign that
made up part of the 44th
Porsche Tennis Grand Prix.
The aim of the donation is to
fund sports opportunities
and activities for children
and young people in order
to mitigate the impacts of
the pandemic.
Porsche donated
Donation of 60,000 euros at Aces for Charity
The 44th Porsche Tennis Grand Prix was a re-
sounding success with its Aces for Charity
campaign, which has been an integral part of
this traditional tournament for many years.
Due to the special coronavirus circumstances,
Porsche donated 200 euros to a good cause
for every ace served this year - twice the sum
that is usually donated. A total of 260 aces
were served in the course of the week-long
tournament and the company rounded its do-
nation up to 60,000 euros. The money was
shared equally among the tournament's charity
partners, the Agapedia Foundation and the
Baden-Württemberg Sports Federation. The
aim is to fund additional sports opportunities
and activities for children and young people in
order to mitigate the impacts of the pandemic.
An important role in terms of the good dona-
tion result was played by Karolina Pliskova. The
2018 Stuttgart winner served 21 aces in her
match against Jelena Ostapenko alone, thereby
setting a new record for a clay tournament.
151
Employees, society, sports and communications
For the tenth time, the Bürgerstiftung Stutt-
gart organisation presented its Citizens'
Award to people and organisations who make
a notable volunteering contribution. Albrecht
Reimold, Member of the Executive Board
responsible for Production and Logistics at
Porsche, welcomed around 250 guests
to the award ceremony held at the Porsche
Museum. In addition to the traditional
awards in the categories of Sustainability
and Innovation, there was a special award for
particular engagement during the pandemic
as well as a public choice award. A new add-
ition in 2021 was the children's award. This
was endowed by Porsche and presented
to the Bees working group by Sebastian
Rudolph, Vice President Communications,
Sustainability and Politics. The bee project
is aimed at children and young people who
have had to endure traumatic experiences
in their lives, are affected by violence and neg-
lect or are unable to participate in main-
stream schooling due to psychological issues.
The project is designed to help children further
develop their personalities and strengthen
their social and emotional skills, independence
and personal responsibility.
New children's award
AMSEL Stiftung recognises engagement
In October, the AMSEL Stiftung Ursula Späth
foundation acknowledged committed people
whose actions were sustainably improving
the lives of people with multiple sclerosis at
the Porsche Museum. The company has been
supporting this foundation since 2014.
The 2020 event had to be cancelled due to
the coronavirus. After a delay of a year, the
four awards - the Care Award, Media Award,
Ursula Späth Award and MS Activist Award -
were presented in person once again. The
foundation has been improving the lives of
people with multiple sclerosis through its
work for 40 years.
PATO
ponents. Training as a motor vehicle mecha-
tronics technician now focuses on system
and high-voltage technology. And the elec-
tronics technician for industrial engineering is
now an electronics technician for automation
technology. These examples illustrate how
Porsche systematically focuses on the future
in terms of training its skilled workers. This is
rounded off by new focuses on intelligent sys-
tems and data science in the IT study pro-
grammes. Transformation is also changing the
training formats. New digitalised offerings
The second Porsche Leadership Lab was con-
cluded in 2021 following a hiatus due to the
coronavirus. Approximately 1,500 managers
attended. With the aid of external input, con-
structive feedback and individual reflection,
they considered Porsche's management cul-
ture, their own management behaviour and
their future roles as managers. The second
wave began with an intensive preparatory
stage in which the managers were able to col-
lect voluntary and anonymous feedback on
their management behaviour from their em-
ployees, co-workers and superiors as part of
the Porsche Code Feedback. At the actual
events, the focus was on the managers all
developing their personal management behav-
iour. In coaching sessions, the managers dis-
cussed the feedback they had received and
learned new methods. From this, they derived
concrete measures. The participants were
also offered external input by scientists from
the University of St Gallen on the topic of posi-
tive leadership and promoting change. The
Porsche Executive Board members partici-
pated in Executive Board dialogues in which
they answered people's questions.
139
New apprenticeship indicate transformation
The transformation of the automotive indus-
try is changing vocational training. Examples
here are digitalisation, Industry 4.0, mobility
of the future and electrification. Porsche's
sustainability strategy has an important part to
play too when it comes to preparing the next
generations of employees. The transformation
is evident in the apprenticeship trades in
particular. A vehicle interior designer is now
a vehicle interior mechanic - a skilled worker
who applies their craftsmanship to handling
all kinds of different materials and who is also
able to install numerous interior electronic com-
32,235
35
138
NEW WORKS AGREEMENT RE MOBILE WORKING
New agreement re mobile working
Porsche responded to the coronavirus pan-
demic with a special agreement regarding
mobile working. From March 2020 to the end
of October 2021, all the employees whose
work allowed it were able to work remotely
for up to five days a week. Based on the posi-
tive experience on both the employer and
employee sides during the pandemic, the
original company rule regarding mobile work-
ing was broadened in March 2021. Whereas
two days a week were previously possible
during regular operations, this will henceforth
be up to 12 days a month. Porsche is there-
fore taking the business interests into ac-
count while also orienting itself even more to
the wish of its employees to strike a better
balance between career and private life.
Member of the Executive Board -
Human Resources
Andreas Haffner,
WE DIDN'T HAVE SUCH
FANTASTIC EMPLOYEES."
"PORSCHE WOULDN'T BE
AS SUCCESSFUL IF
29,777
30
Employees
Porsche AG Group
20
15
5
36,359 36,996
35,429
0
2021
2017
2018 2019 2020
10
Employees, society, sports and communications
25
Farbkraft
STO
CHRI
PHO
RUS
STO
CHRI
RUS
PHO
STC
RUS
Rus
Zeitsprung
M
THE APPEARANCE OF THE PORSCHE 917 KH AT MONTEREY CAR WEEK IN PEBBLE BEACH
Courage
four times a year in 13 languages (German,
English, French, Italian, Spanish, Portu-
guese, Russian, Chinese, Japanese, Korean,
Taiwanese, Dutch and Polish). It has a total
circulation of approximately 600,000 copies
per issue.
PHO
The magazine celebrated the publication
of its 400th issue in the year under review.
Christophorus is currently published
Christophorus celebrates its 400th issue
Named after the patron saint of travellers,
Christophorus is Porsche's main company
magazine. The exclusive magazine has
a very long history and is one of the world's
longest-standing corporate publications.
Christophorus has been offering the Porsche
brand's friends and customers all kinds of
information and background reports on its
vehicles and technologies since 1952. It
also contains interesting lifestyle stories
and features.
CHRISTOPHORUS HAS BEEN PORSCHE COMMUNICATIONS' FLAGSHIP PUBLICATION SINCE 1952
Rennkunst
PHO
CHRI
class win in Le Mans, the
Porsche Museum produced
a series of videos called
Porsche Moments. The six
episodes were published on
the Instagram channel, on
Facebook and on YouTube.
Porsche sets great store by sustainability
when producing the magazine. Innovative
technologies in the printing process result in
significantly lower emissions - CO₂ emis-
sions are reduced by more than 50 per cent
compared with conventional printing pro-
cesses. In addition, Christophorus is printed
on FSC-certified paper. This certification
The premiere show was broadcast live on
Porsche's NewsTV. The trade show event
was complemented with information on and
photos and videos of the new models being
dispatched to international media.
attracted a lot of attention from media and
the trade show visitors. The highlight was the
new top model from the 718 family - the
718 Cayman GT4 RS and its racing version,
the 718 Cayman GT4 RS Clubsport. Two
new versions of the all-electric model series
Taycan were likewise presented in Los
Angeles - the Taycan GTS and the Taycan
GTS Sport Turismo.
Porsche lit a major innovation firework in
November - the sports car manufacturer
simultaneously celebrated no less than five
world premieres at the LA Auto Show. In
addition to the elegant Panamera Platinum
Edition, four new sports models in particular
In early September, Porsche offered a vision-
ary view of the future of the sporty automo-
bile. At the start of IAA Mobility in Munich,
the company presented its Mission R con-
cept study. The study with an all-electric
drive combines cutting-edge technologies
and sustainable materials with a passion
for motorsport. The pioneering technology
leader's attention-grabbing trade show
appearance in the capital of Bavaria was
followed by media around the world and
featured in their reporting.
in the Hyperbowl studio at Munich Trade Fair
Centre. Cutting-edge digital and video tech-
nology blurred the lines between the world
of film and the real world. The spectacular
event was broadcast around the world on
NewsTV. In addition, a comprehensive multi-
media press kit containing detailed infor-
mation generated a strong media response
to the new model.
In March, the company presented the Taycan
Cross Turismo to the global public with an
innovative digital world premiere. The all-
electric all-rounder made its first appearance
Porsche is shaping the future of mobility -
with highly emotive internal combustion
engines, high-performance plug-in hybrids
and innovative all-electric drives. This is the
key message of the drive strategy that
Porsche impressively underscored in Los
Angeles with its new models. This position
was lastingly picked up on in global report-
ing on the premium manufacturer's trade
show appearance.
The goals of Porsche's Strategy 2030 and
the ongoing progress made with their imple-
mentation are also carefully presented in the
product communication. In this way, the fact
that Porsche is systematically expediting its
transformation in the areas of action of elec-
trification, digitalisation and sustainability is
clearly publicised.
Bringing the products to people's attention
Communicating new vehicle models and inno-
174
BY NIKO HÜLS WON A GERMAN
BRAND AWARD
THE BOOK HIP HOP KULTUR
En Roadtrip durch Europa
Hip
Hop
Kultur
vative technologies in an attentiongrabbing
way is one of the main tasks of Porsche's
public relations work. For example, the pres-
entation and roll-out of new products is regu-
larly accompanied by diverse communication
measures ranging from press events to mark
premieres and the dispatching of images and
information materials to media representa-
tives through to driving events that offer auto-
motive journalists the opportunity to conduct
extensive practical testing. There is also an
extensive press fleet featuring the latest test
cars from all the series.
STO
#PORSCHELAAS2021
Employees, society, sports and communications
CHRI
70 years after Porsche's first
22
23
The Porsche Sound Night organised by the
Porsche Museum was held digitally for the
first time in the year under review under the
title of Next Level. Former and current racing
drivers and race engineers presented the
sounds of carefully selected racing and
series production cars via live stream at the
Porsche Museum and the Weissach Devel-
opment Centre. The interactive event was
broadcast globally in three languages on the
website soundnacht.porsche.de and was
watched by 150,000 viewers in 73 coun-
tries. A recording of the spectacular concert
of engines was subsequently published on
the Porsche Museum's YouTube channel.
Facebook page. Sixty-seven per cent of those
who show an interest in Porsche Heritage in
social media are in the 18-to-34 age bracket.
PORSCHE LIT A MAJOR INNOVATION FIREWORK AT THE LA AUTO SHOW
Porsche Heritage communicates its mes-
sages very successfully via social media
channels. A very loyal, international fan base
of more than 500,000 followers has been
built up on Instagram in the space of just four
years and this number continues to rise.
The Instagram channel is also met with great
interest outside of its circle of followers.
With two posts a day, it has average media
penetration of around 800,000 Instagram
accounts a day. Porsche Heritage has another
approximately 240,000 followers on its
The Porsche Museum produced a series of
videos called Porsche Moments to mark this
anniversary. The six episodes were published
on the Instagram channel @porsche.museum,
on the Facebook page @porsche.museum.
stuttgart and on YouTube. The sports car manu-
facturer also organised an international road-
show with 14 stops in 10 countries which
presented more than 20 original winning ve-
hicles from the museum's historical collection.
2021 marked the 70th anniversary of
Porsche's first class win in Le Mans - a great
occasion for the Porsche Heritage department
and the museum to focus in-depth in the year
under review on the unique success story that
Porsche has shared with the famous 24-hour
race held by the River Sarthe since 1951.
The Porsche Museum in Zuffenhausen is
much more than merely a place that allows
people to experience Porsche's tradition. It is
also a centre of gravity for Porsche's Heritage
Experience. It takes the brand's vibrant and
forward-looking identity to all the regions
around the world. The historical vehicles in the
museum's extensive collection are used as
brand ambassadors around the world - and
demonstrate how closely the future of Porsche
is connected to its origins.
Bringing together tradition and the future
The mission of Porsche Heritage is to make
the past fit for the future in the present. The
future topics of digitalisation, electrification
and connectivity are not at odds with the com-
pany's history as tradition and innovation to-
gether form the foundations of the Porsche
brand. Work on tradition is therefore firmly
embedded in the corporate strategy.
175
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The highlights included an appearance of
the Porsche 917 KH at Monterey Car Week
in Pebble Beach, California. It was with this
racing car that the company achieved its
overall victory in Le Mans in 1971. What are
known as Heritage Corners featuring more
in-depth information were simultaneously
set up at all the Porsche Experience Centres.
guarantees a sustainable production
process, from the cultivation of wood as
a raw material through to paper as the
end product.
The clip "Unseen: Mauer's design studies",
likewise from Episode 17 of 9:11 Magazine,
reaped multiple awards. It won the Red
Dot Award 2021 in the category Brands
& Communication Design for its high design
quality. And in the Best of Content Marketing
Awards, the clip won gold in the category
Non-Fiction - Branded Entertainment.
Award-winning quality
Christophorus clinched Gold in the Best of
Content Marketing Awards (BCM) for the
third time in 2021, thus placing the magazine
in the corporate publications hall of fame.
The BCM recognised the magazine as a "per-
manently outstanding example of continuous
quality in content marketing".
(Esso
RACING FUEL
Synergy
Esso
MOBIL 1
SUPERCUP
PORSCHE
in the Porsche 911 GT3 R with start number
911. This success rounded off the celebra-
tions to mark the 25th anniversary of the
team based in the Eifel. Manthey extended
its track record as the most successful team
with its seventh win in the 24-hour race. It
was also the 13th time a Porsche racing car
had triumphed. The customer team Huber
Motorsport achieved a commanding win in
the Pro-Am class with an over 500 PS 911.
The Saturday evening race had to be inter-
rupted for more than 14 hours due to the
weather. There was therefore only around
nine and a half hours of actual driving time.
In the 49th edition of the classic
24-hour race at the Nürburgring,
Kévin Estre, Michael Christensen
and Matteo Cairoli finished first
in their Porsche 911 GT3 R.
This success rounded off the
celebrations to mark the 25th
anniversary of the Manthey team
based in the Eifel.
Nürburgring 24 Hours, June: the customer
team Manthey scored its seventh overall win
in the 24-hour race held at the Nürburgring.
In the 49th edition of this classic endurance
race, works drivers Kévin Estre of France,
Michael Christensen of Denmark and Matteo
Cairoli of Italy crossed the finishing line first
team finished the final race of the FIA Endur-
ance World Championship (WEC) in second
and fourth place. In the 8 Hours of Bahrain,
the Porsche 911 RSR with start number 92
and driven by Kévin Estre of France, Neel Jani
of Switzerland and Michael Christensen of
Denmark was deservedly in the lead in the
thrilling end stages, putting it on course
for the title, but was then clipped by a Ferrari
and spun. Race Control did not penalise the
competitor car. The identical, approximately
515 PS sister car driven by Gianmaria Bruni
of Italy, Richard Lietz of Austria and Frédéric
Makowiecki of France finished the sixth and
final race of the season in fourth place in the
GTE Pro class. At the end of the endurance
racing year, Porsche came second in the
manufacturers' championship. There was also
success for the customer teams Dempsey-
Proton Racing and Project 1, both of which
got a 911 RSR onto the podium in the
GTE Am category.
WEC, Bahrain, November: the Porsche GT
"Our team put in a flawless and fantastically
feisty performance," explained Fritz Enzinger,
who was Vice President of Motorsport at
the time. "There was unfortunately something
lacking in our performance for us to have
any serious say in the competition for the
class win. The podium position for start
number 92 is nevertheless a great reward
for the passionate work of our employees
at the racetrack and at our site in Weissach.
Thanks to everyone who played a part in
this achievement."
a podium finish in the GTE Pro class of the
89th 24 Hours of Le Mans. The works drivers
Kévin Estre of France, Neel Jani of Switzerland
and Michael Christensen of Denmark finished
in third place in the Porsche 911 RSR bear-
ing start number 92. Its sister car, number 91
driven by Gianmaria Bruni of Italy, Richard
Lietz of Austria and Frédéric Makowiecki of
France, finished the fourth race of the
FIA World Endurance Championship (WEC)
season in fourth place. The internal battle
between the two works cars to secure
the last podium position was decided approx-
imately an hour before the end of the race,
when car number 91 slid off on the last
chicane and had to have its rear repaired
and its brakes renewed.
MICHELIN
WEC, Le Mans, August: Porsche achieved
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Employees, society, sports and communications
PORSCHE
LE MANS
2h
LMGTE PRO
92
92
TAGH
PRO
92
PORSCHE 911 RSR DURING A PIT STOP IN LE MANS
ON
161
Mobil
THE PORSCHE 911 GT3 CUP WAS RUN ON ESSO RENEWABLE RACING FUELS IN THE SUPERCUP IN 2021
BOSS
The magazine character of Christophorus is
also reflected online in the digital moving
image format 9:11 Magazine, which profiles
interesting people with a special Porsche
connection. Each episode is based around
a special theme, which is staged in the form
of multiple video clips. All the content can be
used by journalists and online influencers for
their own productions.
The high journalistic quality of the videos
also impressed the Cannes Film Festival
jury in the year under review, with 9:11
Magazine counting among the winners at
the Cannes Corporate Media & TV Awards
2021. It was awarded a coveted Dolphin
trophy for the "Porsche, Comic Hero" chapter
in Episode 17.
In the Automotive Brand Contest 2021,
9:11 Magazine collected no less than four
awards in the category Corporate Pub-
lishing, with the episodes "Silvestro at the
Start", "A 911 on Your Wrist", "Porsche,
Comic Hero" and "Zeitgeist" all being rec-
ognised. The video magazine also made
an impression in the Digital category with
the episodes "Dreaming" and "The Beauty".
Porsche AG's Annual and Sustainability Re-
port 2020 was likewise recognised, picking
up a German Brand Award in the category
Corporate Publishing.
176
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
177
The Newsroom content is complemented by
a variety of digital agenda-setting activities
on high-reach social media channels such as
Facebook, Instagram, Twitter and DriveTribe.
This has made a key contribution to the suc-
cess of Porsche Communications. The sports
car manufacturer registered 1.7 million follow-
ers on its Newsroom channel on Instagram in
2021, achieving some 126 million impressions.
The company recorded 2.7 million impressions
through DriveTribe. Twitter contributed
583,000 followers with 11.1 million impres-
sions. A total of 263 million impressions and
some 3.6 million followers were recorded
across all of Porsche Communications' social
media channels in the year under review.
The Porsche Tennis Grand Prix offered tennis
fans a slice of normality once again during
the pandemic. Although no spectators were
allowed to attend the guest appearance
of the world's top players in women's tennis
Porsche Tennis Grand Prix
TENNIS
PORSCHE
TSNOW AL.
163
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Employees, society, sports and communications
1 The reduction in greenhouse gas emissions stated
here relates to a comparison of the calculated product
carbon footprint (PCF) of the renewable compo-
nents in the PMSC racing fuel and a baseline value
of 94 grams of CO2e/MJ as per the EU's Renewable
Energy Directive. The emission reduction of up to
85 per cent due to renewable instead of conventional
components is based on PCF calculations as per
ISO 14067 (well-to-wheel consideration through-
out the fuel's value chain). The emissions taken into
account are those related to raw materials, production,
transport and combustion during the manufacture
of the blend mentioned here featuring renewable
components. A functional unit of 1 MJ of fuel was used
for the comparison.
Fuel if it meets the current fuel standard fol-
lowing the necessary blending. In the pilot
project, Porsche and ExxonMobil are expedit-
ing the development and the potential future
market maturity of synthetic fuels together
with other international partners.
Michael Steiner, Member of the Executive
Board responsible for Research and Develop-
ment: "eFuels complement our drive strategy
wonderfully. They allow our customers to
drive cars with internal combustion engines
and plug-in hybrids almost entirely CO2-neu-
trally. By collaborating with ExxonMobil, we
are able to test the eFuels under demanding
conditions on the racetrack. This will take us
one step closer to a marketable and CO₂-
reduced eFuel that can replace conventional
fuels." Porsche and ExxonMobil are adopting
a two-stage testing strategy. A bio-based
blended fuel was used in 2021. The advanced
biofuel proportion is sourced from food
waste products. Other fuels are blended in to
achieve the required knock resistance and
combustion behaviour. Depending on pro-
duction capacities, the second step could be
taken at the end of the 2022 season, namely
introduction of the eFuels from the Haru Oni
pilot project in Chile. This involves hydrogen
being combined with carbon dioxide extracted
from the air to create methanol. CO₂ emis-
sions could be reduced by up to 85 per cent'
with this eFuel-based Esso Renewable Racing
eFuels: Porsche Mobil 1 Supercup success-
fully invests hope in renewable fuels
The Porsche Mobil 1 Supercup introduced
renewable fuels at the start of the 2021
season. The international one-make cup will
initially use advanced second-generation
biofuels. This will already considerably
reduce CO2 emissions. The plan is then for
fully synthetic fuels - otherwise known as
eFuels to be used in the 2022 season. In
this flagship project, Porsche and its project
partner ExxonMobil will test the suitability
for use of renewable liquid fuels under tough
motorsport conditions. The new Porsche
911 GT3 Cup with its high-revving six-cylin-
der boxer engine serves as the ideal test lab
for the Esso Renewable Racing Fuels - its
approximately 375 kW (510 PS) 4.0-litre
engine has already been tested for use with
renewable fuels. The aim is to gather import-
ant experience for their potential further
development with a view to using them in
production vehicles in the future. The
Porsche Mobil 1 Supercup will be held dur-
ing European races of the FIA Formula 1
World Championship.
Mobili
BE PART OF US
2021
162
PORSCHE 911 RSR WITH START NUMBER 92 IN BAHRAIN
92
PRO
DHL
TAGHEUer
A digital issue is produced in all the languages
in addition to the printed magazine. The
print and online versions are intelligently
interconnected, with the topics from the print
version being complemented with moving
images and additional digital content in the
online version.
One of them is the graphic designer Jeffrey
Docherty from New Zealand, whose work
includes the front cover of Issue 400 of the
Porsche company magazine Christophorus.
Another of them is the German music jour-
nalist Niko Hüls with his two-part hip hop
documentary Back to Tape, which is pre-
sented by Porsche. The book that goes with
it, Hip Hop Kultur, won a German Brand
Award in the category Product and Commu-
nication Design.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The coronavirus pandemic caused lock-
downs and travel restrictions again in the
year under review. The Newsroom respond-
ed to this with a new content series called
Sunday Drives, in which well-known Porsche
enthusiasts presented their favourite
routes. Here, the Newsroom users are taken
on exciting, adventurous journeys around
the world.
Angelique Kerber made an impression both
on and off the court this year. She made it
back into the top 10 world ranking with her
win at the Bad Homburg Open, which she
helped organise, and her semi-final appear-
ances in Wimbledon and Cincinnati. She also
enjoyed the limelight in the last episode
in 2021 of the Porsche podcast, her involve-
ment in the Porsche campaign The Art of
Drive and a photo story in Bunte Quarterly.
Julia Görges returned to her old stamping
ground the sensational winner of the
Porsche Tennis Grand Prix in 2011 moved
around the Porsche-Arena working as a
social media reporter for Porsche's tennis
channels. Six months after her retirement,
she conducted interesting interviews with
her former fellow tennis players for tennis
fans. Maria Sharapova likewise put in a
return appearance at the long-standing tour-
nament in Stuttgart. The three-time winner
took part in the virtual opening ceremony.
PORSCHE BRAND AMBASSADOR ANGELIQUE KERBER WON THE TOURNAMENT IN BAD HOMBURG
Porsche was partner to the
WTA Finals for the seventh
time since 2014. The sports
car manufacturer was repre-
sented on Centre Court by its
subsidiary Porsche Latin
America and the Porsche
Centre Guadalajara and in the
Public Village by a small
exhibition.
Porsche Race to the WTA Finals
Ashleigh Barty also had the edge in the
Porsche Race to the WTA Finals, the official
qualifying ranking for the prestigious sea-
son-ending women's tennis tournament.
This was the seventh time since 2014 that
Porsche was partner to the WTA Finals. The
showdown of the season's eight most suc-
cessful singles players and doubles partners
was moved at short notice from Shenzhen
in China to Guadalajara, Mexico. The singles
final held in front of an enthusiastic crowd
was won by Spaniard Garbiñe Muguruza,
securing her the coveted Billie Jean King
Trophy. The doubles competition was won
by the Czech Olympic champions Barbora
Krejcikova and Katerina Siniakova. Porsche
was visible on Centre Court with its sub-
sidiary Porsche Latin America and the Porsche
Centre Guadalajara and was represented in
the Public Village by a small exhibition.
Porsche supported two new WTA tourna-
ments in Germany as the official automobile
partner with an exclusive Porsche shuttle
service. The bett1open in Berlin and the Bad
Homburg Open both had successful prem-
ieres. Played on grass courts as preparation
for Wimbledon, they proved to be valuable
additions to the global WTA tour. The tour-
nament in Berlin was won by the Russian
Liudmila Samsonova. In Bad Homburg,
Porsche brand ambassador Angelique Kerber
secured her first tournament victory since
winning Wimbledon in 2018. Her Porsche
Team Germany colleague Andrea Petkovic
likewise won a WTA title, claiming victory
in Cluj-Napoca, Romania.
166
COURT SUPREMES PHOTOGRAPHY PROJECT
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
167
GOLF
Porsche and Golf - long-standing ties
Porsche's engagement in golf goes back
a good three decades and is founded on the
combination of two passions that result in
a special community. The company initiated
the Porsche Golf Cup in Germany back in
1988. This exclusive series of amateur tourna-
ments for customers has experienced inter-
national growth in the course of its more than
30 years, illustrating its relevance to the
target group. The Porsche Golf Cup was suc-
cessfully relaunched in the markets in 2021
following a hiatus caused by the pandemic.
No less than two Porsche Golf Cup World
Finals are therefore awaited with much
anticipation in Majorca in the new year - the
cancelled 2019 season finals tournament
and the 2021 world final.
First year as an ambassador
Back in the top 10
Paul Casey experienced his first Porsche
European Open as a member of the Porsche
family. The Englishman has been a Porsche
brand ambassador since autumn 2020.
In this capacity, he experienced among other
things the Goodwood Festival of Speed in
England and, in the USA, Monterey Car Week
and the Sportscar Together Fest in Indian-
apolis. Casey was delighted to be given an
insight into the Porsche and motorsport
worlds and also thoroughly enjoyed taking
part in the 9:11 Porsche podcast together
with Porsche works driver Kévin Estre.
Porsche European Open
The Porsche European Open made an impres-
sive return in 2021 too. The seventh edition of
this professional tournament in the European
Tour held on the Porsche Nord Course of the
Green Eagle Golf Courses outside of Hamburg
from 5 to 7 June 2021 brought world-class
players back to Germany after approximately
two years. The event had to be delayed by two
days and reduced down to three days due to
the travel rules at the time, but the spectators
nevertheless celebrated its comeback on this
impressive golf course. Special authorisation
was given for 2,000 spectators to attend each
day - for the first time after 20 months during
which tournaments in Europe had to make
do without fans. The winner Marcus Armitage
therefore enjoyed a very good reception on
his sensational final round. The Englishman
leapt from eleventh place to first place on
the final day and celebrated his first European
Tour victory. After a strong comeback, title
holder Paul Casey finished in sixth place.
SCHAEFFLER
PORSCHE
DMG MORI
WEC
RSCHE
CAMANCE
GENT
2h LEMANS
2
CHOPARD
P1
PORSCHE BRAND AMBASSADOR TIMO BERNHARD
DMG MER
DMG MORI
"I gain a lot from the partnership because I'm
so motorsport crazy myself," says Casey.
"I want to fulfil my ambassador role to the full
and I'm free to do it - it's fantastic. And I'm
getting to know many wonderful people with
whom I can talk about the brand and motor-
sport. It's incredibly inspiring."
CHOPARD
The brand ambassadors Angelique Kerber,
Julia Görges and Maria Sharapova lent
their faces to Porsche to boost its profile in
tennis - quite literally as they featured in
Court Supremes, a spectacular photography
project of Porsche Central and Eastern
Europe, Porsche AG and the world-famous
photographer Radka Leitmeritz. The project
is an artistic homage to women's tennis
and to players who have dominated the sport
for decades. In addition to the three brand
ambassadors, other winners of the Porsche
Tennis Grand Prix to be the subject of photos
were the legendary player Martina Navratilova
and Petra Kvitova. The Prague-based photog-
rapher's aim is to present a different view
of some of the tennis world's successful
women players. Fans can access the artistic
photos online at www.porsche-tennis.com/
court-supremes.
As the exclusive automobile partner of the
WTA and the WTA Finals, Porsche also
sponsored the WTA tournaments in Lyon
(France), St Petersburg (Russia), Cincinnati
(USA) and Linz (Austria) as well as both
events held in Cluj-Napoca (Romania). The
company supported Porsche Team Germany
in the Billie Jean King Cup as a premium
partner to the German Tennis Federation
(DTB). Led by Porsche brand ambassador
Angelique Kerber, the team competed in the
final round in Prague of the event contested
by the top 12 countries. Two promising up-
and-coming players from the Porsche Talent
Team, Jule Niemeier and Nastasja Schunk,
made their successful debuts in the most
important women's team tennis competition.
The Porsche Junior Team is another import-
ant component of Porsche's successful
promotion of young talent. Here, talented
school-age players are offered better training
conditions and more intensive support
at home.
at the Porsche-Arena in Stuttgart, Porsche
made it possible for those interested in
tennis to nonetheless enjoy an extensive
and thrilling tournament experience thanks
to comprehensive multimedia and inter-
active services.
The players got the message too, with seven
of the world's top 10 female players heading
to Stuttgart to participate in the 44th edition
of this long-standing tournament. World
number one Ashleigh Barty attended for the
first time and absolutely did justice to her
position as favourite to win at the Porsche-
Arena. A day after her 25th birthday, she
became the first Australian to win the singles
final, beating Belarusian Aryna Sabalenka
Seven of the world's top 10
female players headed
to Stuttgart to participate
in the 44th edition of
the long-standing Porsche
Tennis Grand Prix.
and winning a Porsche Taycan Turbo S Cross
Turismo. Barty, who subsequently also won
Wimbledon, then additionally won the doubles
title with her partner Jennifer Brady (USA).
The last person to achieve this feat of winning
two titles in a day was the American Lindsay
Davenport in 2001, when the Porsche Tennis
Grand Prix was still held in Filderstadt.
The Aces for Charity campaign has been
an integral part of the Porsche Tennis Grand
Prix for years. Porsche usually donates
100 euros to a good cause for every ace
served during the tournament. But in view of
the special situation, the company doubled
this to 200 euros. The money raised was
donated to the Agapedia Foundation and
the Baden-Württemberg Sports Federation,
who used it to offer additional sports oppor-
tunities and activities for children and young
people in order to mitigate the impacts of
the pandemic.
PORSCHE REVEALED THE FIRST PHOTOS OF THE LMDH RACING CAR DURING THE NIGHT OF CHAMPIONS
LMDh
Global partnership in the LMDh programme
Porsche Motorsport and Team Penske agreed
on close cooperation regarding the appear-
ances of the new LMDh vehicle from 2023.
The successful US team will manage the
vehicle's works appearances in the FIA World
Endurance Championship (WEC) and the
IMSA WeatherTech SportsCar Championship
(IWSC) in the US in collaboration with the
experts from Weissach. Both racing series
will each feature two of the spectacular LMDh
prototypes competing for wins in the series'
top classes under the name Porsche Penske
Motorsport. The contract concluded by the
sports car manufacturer from Stuttgart and
the US racing team founded in 1966 will run
for a number of years. A declaration to this
effect was signed by Chairman of the Execu-
tive Board of Porsche AG Oliver Blume, Michael
Steiner, Member of the Executive Board
responsible for Research and Development,
and Roger Penske, Chairman of Team Penske.
"We are delighted to be collaborating with
Team Penske," explained Oliver Blume,
Chairman of the Executive Board of Porsche AG,
at the contract signing. "For the first time
in the history of Porsche Motorsport, our
company will be represented in the world's
two biggest endurance racing series by
a global team. We are therefore establishing
a team base on both sides of the Atlantic.
This will create optimum structures for com-
peting for overall wins in, for example, Le
Mans, Daytona or Sebring." From 2023, the
LMDh vehicles will represent the pinnacle
of endurance racing together with what are
known as Hypercars (LMH). The prototypes
will also be put to use by customer teams
in both championships in their first year. The
cars weighing around just 1,000 kilograms
and based on an LMP2 chassis are accelerated
by a 500 kW (680 PS) hybrid drive.
"WE ARE DELIGHTED TO
HAVE BEEN ABLE TO
SECURE TEAM PENSKE
FOR THIS COLLABORATION.
FOR THE FIRST TIME
IN THE HISTORY OF
PORSCHE MOTORSPORT,
OUR COMPANY WILL BE
REPRESENTED IN THE
WORLD'S TWO BIGGEST
ENDURANCE RACING
SERIES BY A GLOBAL TEAM."
Artistic photography project
Oliver Blume,
ASHLEIGH
BARTY
Tyan Durbes
164
ASHLEIGH BARTY WAS THE FIRST AUSTRALIAN TO WIN THE SINGLES FINAL, WINNING A DAY AFTER HER 25TH BIRTHDAY
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
165
K
BEL
CH TIME
:07
PORSCHE
Nurturing promising talent
Chairman of the Executive Board
Sunday Drives is part of the Scene & Passion
section of the Newsroom, which is primarily
dedicated to lifestyle topics related to
Porsche. It showcases extraordinary per-
sonalities from the international art and
culture scene who have a particular passion
for the Porsche brand.
A
THE NEW CAN TURBOS CROSS TURISMO
On course for success with pioneering spirit
Porsche is heading into a digital, connected
and sustainable future boldly and at a sporty
pace. Porsche's Strategy 2030 will guide
the company on its way. It is driven by pion-
eering spirit, dedication and the desire to
permanently change things. The sports car
manufacturer is resolutely and systematically
realising its ambitious transformation goals -
with teamwork, step by step, from one mile-
stone to the next.
The Communications, Sustainability and
Politics department is especially important
here as the strategic goals need to be pre-
cisely described, the measures comprehen-
sibly explained and the progress made with
strategy work clearly communicated. This
needs to happen both internally and exter-
nally employees, customers and the public
want to be kept in the loop and join Porsche
on its journey into the future. They want to
know about the concrete impacts of the
Porsche strategy on the company's work-
places, products and sites, while also bearing
in mind the effects on society, the economy
and the environment.
The core responsibilities of the Communica-
tions, Sustainability and Politics division are
to transparently and credibly inform people
about Porsche and its strategic goals, gener-
ate lasting trust in the brand and strengthen
the company's reputation. It strategically de-
velops, manages and orchestrates the com-
pany's communications. It coordinates the di-
verse individual measures, tailors them to the
target groups in question and operationally
implements them.
A comprehensive reorganisation in the year
under review resulted in a significant increase
in the efficiency and strategic strength of
Porsche Communications. This success is
made transparent by means of regular meas-
urement, with the most important perform-
ance indicators being analysed. These include
the PR value, tone and media penetration.
These measurements are complemented by
reputation analysis.
Successful communication work is founded
on open dialogue with all of the company's
stakeholders. These include the international
media, policymakers, authorities and asso-
ciations, civil society and, internally, the
Porsche employees.
Powerful public relations
To impart information and messages in a tar-
geted manner, Porsche Communications
draws on the entire array of modern-day in-
struments and channels.
One of the key tools is traditional public rela-
tions - in the course of the year under re-
view, the sports car manufacturer published
just under 420 press releases about new
products and technical innovations, motor-
sport, company topics and important events
relating to the brand's history. Porsche's
communication experts also oversaw around
80 verbatim interviews with members of the
Porsche Executive Board.
This resulted in broad, high-profile reporting
on Porsche topics in international print and
TV media. Porsche succeeded in getting its
products and topics onto the front covers
of publications 94 times in 2021. Almost
47,400 articles about Porsche were pub-
lished around the world in the course of
the year under review. Porsche Communica-
tions therefore once again made a big con-
tribution to the company's value creation,
as reflected in the high PR value of around
1.3 billion euros.
MEDIA REPRESENTATIVES WERE ABLE TO EXTENSIVELY TEST-DRIVE NEW PORSCHE MODELS AT VARIOUS DRIVING EVENTS
172
Auf Ausfahrt: Südfrankreich
Auf Ausfahrt: Sidfrankreich
00
COMMUNICATIONS
newsroom
Galerie
THE NEWSROOM IS PORSCHE'S ONLINE MULTIMEDIA INFORMATION PORTAL
Digital channels increasingly important
As was the case in the previous year, 2021
was likewise dominated by the global corona-
virus crisis. The two pandemic waves at the
beginning and the end of the year really put
social coexistence to the test again.
This had an impact on how people used media,
with the clear trend in the direction of going
online continuing. The digital communication
channels therefore increased in importance
again. Porsche Communications sees this
change as an opportunity and is making the
most of it. It systematically expanded its
digital information services in the year under
review and boosted the brand's presence in
online media and social networks.
The Porsche Newsroom is
the primary source for all
journalists and the interested
public. The digital portal
offers up-to-date information
and data regarding the
company, all prepared for
cross-media use and in
seven languages.
PRSCHE
The content is published in seven languages
(German, English, Spanish, French, Italian,
Russian and Chinese). The Newsroom add-
itionally features the moving images platform
NewsTV with the latest streams, videos and
the online format 9:11 Magazine. The diverse
array of information is complemented by
downloadable photos, infographics, podcasts
and videos.
The Porsche Newsroom therefore serves
as a helpful multimedia research tool. Inde-
pendent experts attest to the Porsche
media portal being an outstanding service
for journalists. The Porsche Newsroom
clinched first place in the 2021 media rela-
tions benchmark ranking by the business
consultancy NetFederation. The media
websites of 50 German major enterprises
with a group structure were examined on
the basis of 63 different criteria. Porsche
was rated the best.
Employees, society, sports and communications
173
S.VQ 1008E
THE COMPANY PRESENTED THE TAYCAN CROSS TURISMO WITH AN INNOVATIVE DIGITAL WORLD PREMIERE
Lifestyle topics related to Porsche
The Newsroom is relevant not only to jour-
nalists, but also to the general public, cus-
tomers and fans of the brand. The attractive
platform is increasingly being used by this
target group as well to obtain first-hand in-
formation about Porsche, as also indicated
by the ever-increasing number of platform
visits. The Newsroom reached around
3.2 million people in 2021.
Auf Ausfahrt: Südfrankreich
HOLE-IN-ONE PRIZE
171
Employees, society, sports and communications
BRAND AMBASSADORS
The brand ambassadors are an important part
of the Porsche family as they authentically
represent the brand and make the Stuttgart-
based company's uniqueness tangible.
Their appearances clearly show what Porsche
stands for breathtaking products, fascinat-
ing experiences and value-creating innov-
ations. Porsche is a sports car manufacturer
out of conviction - the brand's origins and
also the self-image that characterises it lie
in motorsport. Performance, achievement
orientation, team spirit and a natural will to
succeed are all attributes which are charac-
teristic of the core of motorsport. Porsche
therefore collaborates with individuals here
who have impressively demonstrated their
sporting prowess on racetracks around
the world.
At the heart of the Porsche DNA
Based on his impressive GT racing experience,
the former works driver Jörg Bergmeister now
serves not only as a Porsche brand ambassa-
dor. The successful 911 driver also contrib-
utes his expertise as a test and development
driver to the test-driving of future sports car
models and offers incredible insights into
the hard work of a professional driver at press
driving events and track events.
One of the most successful Porsche works
drivers has likewise successfully completed
a large number of test kilometres - with his
illustrious motorsport career, Timo Bernhard
is one of the faces of the Stuttgart-based
sports car manufacturer in this segment.
Bernhard, who started his career as a Porsche
junior in 1999 and is a Le Mans winner and
two-time FIA World Endurance Championship
winner, can continue to live his dream with
Porsche even after his active career - now as
a brand ambassador. At a variety of events,
the former endurance racer relates anecdotes
about the past.
He frequently crosses paths with his former
teammate Mark Webber. The Australian and
former Formula 1 driver is a seasoned motor-
sport expert and, in his capacity as a Porsche
brand ambassador, also a popular moderator
of many events. The former sports car world.
champion also authentically represents
topics related to the Exclusive Manufaktur.
As an advocate and lover of especially curvy
stretches, legendary rally driver Walter Röhrl
has served the premium manufacturer as
a brand ambassador uninterrupted since
1993. Röhrl is one of only a few drivers who
have succeeded in winning championship
races in both rallying and circuit racing and
can explain in simple terms what's important
when driving at the limit. Röhrl, who is now
75 years of age, therefore also makes
appearances at product presentations again
and again.
PAUL CASEY IN THE PORSCHE EUROPEAN OPEN
168
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
169
SAMI KHEDIRA, AMBASSADOR FOR PORSCHE'S YOUTH DEVELOPMENT
Sports engagement diversity
Brand ambassador Aksel Lund Svindal has
a passion for the perfect line in his blood too.
The two-time Olympic champion and five-
time world champion is one of the most suc-
cessful alpine skiers around and has been an
avowed sports car fan since an early age.
The Norwegian shares his feel for speed, the
right balance for optimally taking corners and
the vision needed for future topics at trade
shows, events and product presentations.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The newest addition to the team of brand
ambassadors, professional golfer Paul Casey,
likewise has sports cars in his genes. The
Englishman has counted among the top
professional golf players for two decades and
is a true fan of Porsche. This is something
that fans and customers alike can witness
again and again when Casey participates in
Porsche events around the world.
class and personality on and off the court,
and represent Porsche and its philosophy as
brand ambassadors on the global stage.
As an ambassador for Porsche's youth devel-
opment, Sami Khedira, who was part of
Germany's World Cup-winning team, applies
the experience he gathered in the course of
his long international career to his work with
talented young sportspeople. Khedira, who
was born in Stuttgart, supports the Turbo
for Talent programme, the aim of which is to
use events and regular dialogue to teach
young people values that will help them
develop from up-and-coming sportspeople
into professionals with personality.
Bolstering the company's heritage
This is something which is supported by
actor Richy Müller, who plays the Stuttgart-
based police inspector in the series Tatort
and who is involved in the foundation
Stiftung Lesen together with Porsche, which
seeks to encourage children to read. He also
represents Porsche at a variety of events in
the areas of product, corporate and heritage
communications.
As an ambassador for
Porsche's youth develop-
ment, Sami Khedira, who
was part of Germany's World
Cup-winning team, applies
the experience he gathered
in the course of his long
international career to his
work with talented young
sportspeople.
170
The Porsche Jump
The Stuttgart-based sports car manufacturer
has always tackled things with the mindset
of daring to try new things and boldly leading
the way. In keeping with this motto, Porsche
and brand ambassador Aksel Lund Svindal
recreated a legendary ski jump over a
Porsche. The Porsche Jump is the iconic
restaging of a black and white photo taken in
the 1960s and features two-time Olympic
champion Svindal jumping over a Porsche
Taycan parked between walls of snow of
many metres in height.
The new jump motif is symbolic because,
like the original that depicts a jump over
a 356 B, the new picture featuring a leap
over the first all-electric Porsche stands for
the mettle that the company demonstrates
to stand out in the global competition. This
modern reinterpretation allows the company
to confidently look back at its impressive
history and illustrates how Porsche interprets
future viability always having the courage
to resolutely do more than the others to
come up with the best solution. For Porsche,
the restaging forges a bridge between the
past, the present and the innovations of the
future this symbiosis is afforded authentic
symbolism by the jump over the highly
innovative Taycan.
The Porsche Jump is the
iconic restaging of a black
and white photo taken in
the 1960s and features
two-time Olympic champion
Svindal jumping over
a Porsche Taycan parked
between walls of snow of
many metres in height.
A major journey
Spaceman meets racing driver: German ESA
astronaut Matthias Maurer had a dream
come true in autumn 2021 when he flew
to the International Space Station (ISS).
Brand ambassador Timo Bernhard has done
the same the two-time Le Mans overall
winner, record breaker and sports car world
champion can look back on an impressive
professional career with Porsche. Two people
with two different missions, but the same
level of dedication - Bernhard and Maurer
have both realised their dreams thanks
to meticulous preparation and a love of tech-
nology and science.
In a joint video chat for the weekly paper
DIE ZEIT as part of its ZEIT for Research
themed week, Bernhard and Maurer,
who both hail from Saarland, related how
important it is to hold on to your dreams.
"My 2017 Le Mans win with Porsche was my
personal flight to the moon," says Bernhard,
who, unlike Maurer, has already been able to
realise his greatest dream. Maurer's greatest
dream is to journey into space. "I was a
scientist and I saw an opportunity to work in
an international team with the very best
technology. And I was drawn by the adven-
ture too." The astronaut will return to earth
in early 2022.
FOR PORSCHE, THE RESTAGING OF THE PORSCHE JUMP FORGES A BRIDGE BETWEEN THE PAST, THE PRESENT AND THE FUTURE
The portfolio of brand ambassadors includes
the top two German women's tennis players
of recent years, Angelique Kerber and Julia
Görges, as well as the erstwhile world-class
player Maria Sharapova. All three of them are
former winners of the long-standing Porsche
Tennis Grand Prix. They are known for their
24h
Online, the Porsche Newsroom is the primary
source for all journalists and the interested
public. The digital portal offers up-to-date in-
formation and data regarding the company, all
prepared for cross-media use. The extensive
array is complemented by features and back-
ground reports.
in start number 92 scored another win on the
high-speed course in Monza, Italy. This suc-
cess in August was extra special. The drivers
and, above all, the Manthey crew based at the
Nürburgring put in an impressive performance
under the most challenging conditions - at
the time, everyone's minds were on the flood
disaster in Germany, in particular as there
were Manthey employees who were directly
affected.
the foundation's heart. Day care centres,
schools and social facilities are to be rebuilt
with a donation of 550,000 euros. The aim is
to restore normality in particular to the lives
of children and young people. In addition to
numerous new activities, existing support
relationships such as those with food banks,
ARTHELPS and the organisation Stuttgarter
Kinderstiftung were extended. The Ferry
Porsche Foundation supported more than
130 projects with a total of almost five mil-
lion euros in 2021.
550,000 euros for the flood victims
Helping the people affected by the flood dis-
aster in North Rhine-Westphalia, Rhineland-
Palatinate and Bavaria was a matter close to
Digital Village now also in Europe
Digital education was also a focus inter-
nationally. Already in the previous year, the
foundation and SOS Children's Villages sup-
ported the development of the digital educa-
tion programme Digital Village in São Paulo,
Brazil. This engagement was then expanded
to four locations in Europe in 2021. In the
programme, children and young people are
given hardware and Internet access as well
as training in how to use digital media.
cation institutions in Baden-Württemberg
and Saxony entered with their digitalisation
projects. Thirty-one schools were recognised
and funded with a total of 1.2 million euros.
All the winning projects will be documented
and prepared so that other schools can adopt
the project ideas as best practices too. The
Ferry Porsche Foundation provided a further
61 schools with digitalisation momentum
in the form of a "digital boost" amounting to
more than 900,000 euros. Organisations
such as the Hacker School, the NEO Academy
and Digital Sparks, which are likewise sup-
ported, serve as excellent multipliers here.
1.2 million euros for school digitalisation
The foundation trained a spotlight on the
topic of digitalisation in schools with the sec-
ond Ferry Porsche Challenge. Around 300 edu-
In 2021, the Ferry Porsche Foundation applied
itself in particular to areas where the impacts
of the coronavirus were most keenly felt, such
as the topic of child poverty. The foundation
supports the organisation Straßenkinder e.V.
with the projects street work and education in
times of crisis. The initiative has set itself the
goal of reducing the gaps in education caused
by the coronavirus, securing primary care and
facilitating the reintegration of street kids. The
Ferry Porsche Foundation also supported six
women's shelters in Baden-Württemberg and
Saxony last year with a total of 200,000 euros.
Among other things, the funds are spent on
campaigns on the topic of domestic violence,
24-hour emergency phone lines and the facili-
ties' day-to-day work.
Support in times of crisis
Established in 2018, the Ferry Porsche
Foundation focuses on a broad range of social
responsibilities. Its activities are centred on
child and youth development. The Ferry Porsche
Foundation supports charitable projects in the
social sector and in the areas of environment,
education and science, culture and sport.
FERRY PORSCHE FOUNDATION
Ferry Porsche Foundation
Chairman of the
Sebastian Rudolph,
THE FERRY PORSCHE FOUNDATION IS PROMOTING DIGITALISATION IN SCHOOLS
THEREFORE ACTIVELY IN-
CREASING ITS ENGAGEMENT
IN THE AREA OF DIGITAL
EDUCATION. ABOVE ALL, WE
WISH TO BUILD BRIDGES
BETWEEN DISADVANTAGED
CHILDREN AND YOUNG
PEOPLE AND A PROMISING
FUTURE."
"EDUCATION AND DIGITALISA-
TION ARE AMONG THE MOST
IMPORTANT TOPICS OF THE
MODERN AGE. THE FERRY
PORSCHE FOUNDATION IS
LEPL 850
ROADMOVIES DRIVE-IN CINEMA ON THE PORSCHE CIRCUIT IN LEIPZIG
Dance and creativity for a full academic
year together with Porsche Deutschland,
the Stuttgart Ballet launched the initiative
Ballett JUNG+. Two institutions will initially
benefit from this between November 2021
and May 2022 - Jerg-Ratgeb-Realschule
school in Herrenberg and Konrad-Wider-
holt-Schule school in Kirchheim unter Teck,
which is a special needs education and advice
centre with a focus on learning. The 52
school pupils get together with two dance
therapists at their schools twice a month and
develop their own choreographic scenes. At
the end of the running time, the results will
be merged during a joint intensive week on
the rehearsal stage at the John Cranko School
in such a way that the year five and six stu-
dents can put on a workshop presentation.
Ballett JUNG+ dance sponsorship project
Porsche and its subsidiary MHP entered into
a strategic partnership with the Ludwigsburg
Palace Festival. Together, the partners intend
to engage with young and new target groups.
To this end, culture is being positioned as
a driver of innovation - the festival as a cele-
bration of the arts, democracy and sustain-
ability. The performances put on in the palace
theatre, palace chapel or order hall will not
only be broadcast on large screens in the
inner courtyard or the Blooming Baroque gar-
dens, but will also be streamed online. The
three partners are also creating a Digital
Feedback Room where everything revolves
around communication - a chat room, news-
room and pinboard have been incorporated
into the new website to promote debate. In-
creased activities on the social media plat-
forms Facebook, Instagram and YouTube are
to be used to multiply the number of digital
subscribers to the Ludwigsburg Palace
Festival between now and 2025.
Partnership with Palace Festival
The silver screen on an FIA-certified circuit -
this was made possible in 2021 for the sec-
ond time with the Porsche RoadMovies drive-
in cinema in Leipzig. The Porsche Experience
Centre Leipzig offered a wide array of films on
the 144-square-metre screen. Taking into
account the Saxony Coronavirus Protection
Ordinance, the event site was able to accom-
modate a total of 200 vehicles. A new add-
ition this year was the themed days. Among
other things, these included specials such as
Classic Mondays and films for car enthusiasts
every Wednesday. The visitors were able to
complement their cinema experience with
guided drives on the Porsche circuit in Leip-
zig, either in their own vehicles or in a Porsche
sports car.
RoadMovies drive-in cinema in Leipzig
OTHER ENGAGEMENTS IN 2021
IGTE PRO
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
159
158
94
SPORTS
"What a wonderful way to finish the season,"
said a delighted Thomas Laudenbach, Vice
President of Motorsport. "Porsche's strong
customer teams secured all three titles in
both the GTD class and the IMSA Michelin
Endurance Cup. There was also a class victory
for the 911 RSR on the occasion of its last
appearance in the North American racing
series. And on the Friday, Wright Motorsports
won the manufacturers', drivers' and team
titles in the IMSA Michelin Pilot Challenge
with the Porsche 718 Cayman GT4 Clubsport.
This is as good as it gets!"
In the USA, the Porsche
customer teams WeatherTech
Racing and Pfaff Motorsports
made an impression in the
IMSA WeatherTech SportsCar
Championship in March,
winning both GT classes in
the 12 Hours of Sebring.
In the GTD class and the IMSA Michelin
Endurance Cup, Porsche won the manufac-
turers' title in the final held on the Road
Atlanta course. The Pfaff Motorsports team
with its regular drivers Laurens Vanthoor of
Belgium and Zacharie Robichon of Canada
won both the team and drivers' championship
titles with the Porsche 911 GT3 R. The Wright
Motorsports team clinched all three titles in
the Endurance Cup comprising the endurance
races in Daytona, Sebring and Watkins Glen
and the Petit Le Mans in the state of Georgia.
In the GTLM class, WeatherTech Racing
achieved a one-two victory with the 911 RSR
in the last race.
Porsche will remember the 2021 GT motor-
sport season for a long time as it experi-
enced a rapid succession of highs and lows.
In the USA, the Porsche customer teams
WeatherTech Racing and Pfaff Motorsports
made an impression in the IMSA WeatherTech
SportsCar Championship in March, winning
both GT classes in the 12 Hours of Sebring.
They then repeated this success in August in
the eighth race on the 6.515-kilometre Road
America course in the state of Wisconsin.
Together with its customer teams, the company
celebrated the perfect finish to the 2021
IMSA WeatherTech SportsCar Championship
season in early November.
160
nounced in March that it would be participating. ANDRÉ LOTTERER
BOS
PASCAL WEHRLEIN
Porsche set course for the future in Formula E
back in March. The 2022/2023 Formula E
season will mark the beginning of a new era
with the further developed Gen3 racing cars,
and the sports car manufacturer officially an-
The competition in the ABB FIA Formula E
World Championship races was tough.
This stands as a testament to the closeness
of the drivers' performances - ahead of
the season final in Berlin, 18 of the 24 drivers
were still theoretically in the running for
the championship title. One of them was
Pascal Wehrlein driving for Porsche.
in nine races, making him the best German
driver. Lotterer scored points in six races
and finished 17th overall.
GT sport: world championship title narrowly
missed out on
TAG Heuer Porsche Formula E team finished
in eighth place. Wehrlein came eleventh
36
in the driver standings in his first Formula E
season with Porsche. He picked up points
о
PORSCHE 99X ELECTRIC: ANDRÉ LOTTERER (#36), PASCAL WEHRLEIN (#94)
HO
MOTORSPORT
The start of the World Endurance Champion-
ship (WEC) in Spa-Francorchamps, Belgium,
proved to be a success too - the Porsche
works team masterfully finished in first place
in the hard-fought GTE Pro class with the
911 RSR sporting start number 92. Works
driver Kévin Estre had already given cause for
celebration by performing a record lap in the
final qualifying session. Estre and Neel Jani
Formula E: Porsche setting course
for the future
The TAG Heuer Porsche Formula E team
made significant progress in the 2020/2021
ABB FIA Formula E World Championship
and was one of the most consistent teams in
the second half of the season. The Porsche
99X Electric cars regularly scored points
in the face of stiff competition. The world's
first electric racing series again featured
a very strong line-up of 12 teams.
Pascal Wehrlein was signed as a new driver for
the 2020/2021 season. In the second season
featuring the Porsche 99X Electric, he and
his teammate André Lotterer delivered sport-
ing highlights again and again. Wehrlein took
pole position in Puebla, Mexico. The team from
Weissach also clinched two podium positions,
with Lotterer placing second in Valencia and
Wehrlein finishing in third place in Rome. The
team achieved its best result in New York City,
with Wehrlein and Lotterer placing fourth
and fifth respectively in race 11.
In the team world championship, the
Biodiversity and ecosystems
112
Waste
190
Production
191
Research and development
440 NONFINANCIAL KEY FIGURES
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
111
464
EMISSION AND CONSUMPTION INFORMATION
-
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
469
277
278
186
110
GLOSSARY
Environmental management
104 Energy and climate change adaptation
183
185
Corporate Governance Declaration
BUSINESS DEVELOPMENT
Water and marine resources
-
Macroeconomic environment
187
Sector-specific environment
188
Deliveries
108
Pollution and substances of concern
186
280 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Results of operations
FINANCIAL CALENDAR 2024
284
126
Economic, social, and cultural rights as well as
civil and political rights of communities
194
101
198
Financial position
285
127
Personal safety of consumers and/or end users
202
Net assets
291
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
Basis of presentation
AND NET ASSETS
Working conditions for own workforce
119
RESULTS OF OPERATIONS, FINANCIAL POSITION
-
282 CONSOLIDATED STATEMENT OF CASH FLOWS
476
LEGAL NOTICE
-
191
Personnel
473
192
283
115
SOCIAL
283
115
Partner to society
194
Overall statement on business development and the
economic situation
101
REPORT ON EXPECTED DEVELOPMENTS
Stakeholder dialog and materiality
78
88
68 LETTER FROM THE EXECUTIVE BOARD
149 MEMBERS OF THE SUPERVISORY BOARD AND
COMPOSITION OF THE COMMITTEES
69 MEMBERS OF THE EXECUTIVE BOARD
153
REMUNERATION REPORT 2023
PORSCHE IN THE CAPITAL MARKET
80 REPORT OF THE SUPERVISORY BOARD
87
MEMBERS OF THE SUPERVISORY BOARD
179 COMBINED MANAGEMENT REPORT
WITH NON-FINANCIAL STATEMENT
89
SUSTAINABILITY
MEMBERS OF THE EXECUTIVE BOARD
147
136 CORPORATE GOVERNANCE DECLARATION
135 CORPORATE GOVERNANCE
MILESTONES
Annual and Sustainability Report
Porsche AG
H
11
20
22
407 FURTHER INFORMATION
03
WE ALWAYS LOOK TO THE
FUTURE BOLDLY, BUT NEVER
FORGET WHO WE ARE AND
WHERE WE COME FROM.
Oliver Blume, Chairman of the Executive Board
CONTENTS
4
6 MAGAZINE
67
TO OUR SHAREHOLDERS
23
254
REPORT ON RISKS AND OPPORTUNITIES
254
TCFD INDEX
434 SASB INDEX
—
180
180
FUNDAMENTAL INFORMATION ABOUT THE GROUP
Business model
182 Strategic direction of the Porsche AG Group
Management and key performance indicators
431
275 CONSOLIDATED FINANCIAL STATEMENTS
437 KEY FINANCIAL FIGURES
90
81
SUSTAINABILITY AT PORSCHE
90
Strategy fields
94
276 CONSOLIDATED INCOME STATEMENT
ENVIRONMENT
GRI CONTENT INDEX
Overall statement on anticipated development
General principles of risk and opportunity
management
262
Risks and opportunities as of December 31,
2023
267
Financial risk management and methods as well
as opportunities
409
269 Summary
425
408 RESPONSIBILITY STATEMENT
417 INDEPENDENT AUDITOR'S REPORT
270
284 Significant events
419 INDEPENDENT AUDITOR'S REPORT
271
273
270 Development of the global economy and
passenger car markets
Forecast assumptions
422 ABOUT THIS REPORT
INDEPENDENT AUDITOR'S REPORT
IFRS 5-Assets held for sale
285 Impact of climate change
Notes to the income statement
290 Effects of new or amended IFRS
Oliver Blume,
Chairman of the Executive Board
49%
8 min
Success is always the
result of teamwork. And
we're a strong team.
which represented a new path for us. And
more than just a few were skeptical whether
it was the right path for Porsche. But when
the factory opened its doors in fall 2019 and
the global premiere was a huge hit, everyone
realized that the Taycan would be a success.
We had produced the 100,000th Taycan by the
end of 2022, which was followed by more than
40,000 cars in 2023 alone-and that was the
last cycle year of the first generation. And now
the new Taycan is coming-and setting new
technological benchmarks.
Were those notable stage wins?
Yes, because they provide us with a sense
of optimism and self-confidence and are a
validation of the path we have chosen. Now
we're approaching the next major leap in
development. Our all-electric vehicles will
be even more powerful and efficient-and
therefore even more attractive. In addition to
the second generation of the Taycan, we're
also launching the all-electric Macan in 2024.
Both vehicles define the sports car in their
segment. Porsche and electric powertrains go
hand in hand. Our electrification ambition is to
deliver more than 80 percent of our new cars
fully electrified in 2030-depending on the
demand of our customers and the development
of electromobility in the respective regions
of the world. We are also working towards a
net carbon-neutral value chain of our newly
produced cars in 2030.
The new Macan and the next
generation of the Taycan are
the benchmark.
The new Taycan and the all-electric Macan will
demonstrate our extraordinary performance and
quality standards in the years to come. Thanks
to 800-volt technology, it only takes 18 minutes
to charge the Taycan from 10 to 80 percent.
When it comes to driving characteristics,
the new Macan is the benchmark of its class,
thanks to state-of-the-art rear-axle steering
and precise all-wheel control. We're also taking
a giant step forward in terms of software, with
response times comparable to those of a tablet.
The system responds in a matter of seconds..
When you enter your navigation destination
with voice command, even a much longer route
will appear immediately. Charge planning is
calculated just as fast and with the same level
of precision.
You've positioned Porsche
as a luxury brand. What exactly
makes it so?
It's important to think about how Porsche
defines luxury in general. We know that
our customers fulfill their dreams with a
Porsche. They benefit from the perfect
combination of iconic legacy and sporty,
state-of-the-art luxury. Our sports cars not
only boast extraordinary design, quality,
and technology, but also offer irresistible
exclusivity and performance. In addition,
we combine an outstanding product with a
very personal experience and a brand that
assumes responsibility in society. As far as
I know, that's unique throughout the luxury
car segment.
At the very core, it's all about
sports cars. Your products are
extremely appealing.
luxury.
state-of-the-art
combination of
iconic legacy
and sporty,
the perfect
I don't have a secret formula, but I do have
a philosophy and method for managing the
company. My aim is to apply these specifically
to the conditions at hand and any questions
that arise. It's just like in sports. Experience
can be helpful-and so can strategic
preparation and structured implementation.
Basically, my formula is this: first, analyze the
situation with precision; second, prioritize
topics and responsibilities; and third, make
decisions strategically and with foresight-
and implement these with a high degree
of determination. I provide our teams with
guardrails that offer guidance, but also the
leeway they need to flourish, develop ideas,
and operate in an entrepreneurial way. The key
to success is everyone working for the benefit
of the team, the company, and our customers.
For me, it's all about the right mindset and
team spirit.
So it's about pragmatic guidelines
rather than visionary ones?
It ultimately comes down to pragmatism,
especially in eventful times like these. Targets
set the benchmark. It's essential to make them
ambitious, but also achievable. I'm a pragmatic
manager. When it comes to setting goals, I
think in terms of the big picture, but also in
stages. It's like preparing for a hike. It all comes
down to which peak we plan to climb and
which route we're going to take. For example,
why the northern route is better than the
southern route. We organize our gear and pack
our backpacks carefully. And then we get on
our way. We don't need to know exactly what
the final leg of the trail will look like when we
set off. It's important to get started and then
make decisions based on the situation, never
losing sight of what we plan to achieve over
the long term. Our strategy shows us the way,
and our annual priorities shape the stages. The
summit is our goal, and we approach it one
step at a time.
Does that make transformation
a competition in stages?
Transformation in the automotive sector, with
the key issues being around digitalization,
sustainability, and electric mobility, is the
biggest upheaval we have seen in the history
of our industry. It's so much more than just
changing technology, too: new organization
and processes also play a key role. We're talking
about a period of more than 15 years, and we
have about a third of that already behind us.
There are some important things that still need
to be done, such as increasing the efficiency
of electric mobility, expanding renewable
energies, establishing a comprehensive
charging infrastructure, and decarbonizing
the company. Different regions of the world
will transform at different speeds, which our
product strategy takes into account. We're
positioned to be flexible. Electric sports cars
are a clear priority, but we'll continue to offer
combustion engine cars and hybrid drives
throughout the period of transformation.
Basis of consolidation
Without a doubt. At Porsche, we entered the
field of electric mobility at the end of 2015,
which was very early. At that time, the decision
Sports cars form the core of our brand. It's
always about the right technical concept,
product substance, performance, design, and
quality. Customers choose a brand they identify
with. Customers buy brands-and icons shape
them. Iconic products like the 911. You can go
on and on describing your new Porsche 911 to
friends-full of emotion and enthusiasm. But
you can also just look at it. For yourself. It's at
this moment that luxury becomes tangible.
At Porsche, we stand behind our values, our
identity. Porsche has always remained true to
its roots. I can always see that a 911 is a 911,
and compare it with the first one from 60 years
ago. A Porsche is iconic and timeless. It's so
very recognizable.
to develop the Taycan required a lot of courage.
as Porsche CEO as if it were yesterday. We
were talking about billions in investment,
10%
O min
10
10
Porsche is
I remember my first Supervisory Board meeting
You say that success takes planning.
Is there a secret formula for this?
And so this brand recognition
becomes a part of my world?
Milestones Fully Charged
14
16
Crafts-
manship
Porsche has always fulfilled dreams
in series-production cars and custom
designs. The company's history is
chock-full of coveted special editions,
works of art on wheels, and exclusive,
one-of-a-kind cars. Just about anything's
possible. It takes dedication to
recognize dreams—and extraordinary
craftsmanship to make them come true.
When Ding Yi engraves woodcut elements
for an image, that is a form of acceleration.
The sharp blade of the knife boosts the
tempo of the multilayered play of color, says
the Chinese artist, who has spent more than
three decades developing his "Appearance
of Crosses" series. The recurring motif in
the form of and x symbols adorns large
canvases on display in well-known museums.
In 2022, the year he turned 60, Ding Yi
formulated a dream: to apply his work to
a Porsche Taycan. And that's exactly what
happened with one of the most complex paint
jobs in company history. Each color was added
individually using special masking films and
incorporating different consistencies to create
varying surface materials on the outside and
in the interior. The perfect reproduction of
color wouldn't have been possible without
a sophisticated screen printing process. A
multilayered clear coat protects the symbiosis
of art and resistance to wind and weather,
as even a one-of-a-kind custom car like this
has to fulfill all of the Porsche standards
for everyday use, including suitable repair
processes should something ever go wrong
on the streets of Shanghai. As one of the
project managers, the artist played an active
role in fulfilling his dream at Porsche Exclusive
Manufaktur. For visionaries like Ding Yi,
personal involvement and experience are part
and parcel of the special request program.
"Dreams can be powerful. They encourage
us to never give up," says Detlev von Platen,
Member of the Executive Board responsible for
Sales and Marketing, quoting Ferry Porsche,
who decided to build the car of his dreams
when it was nowhere to be found. "That's
where you'll find our roots and the origin
of our brand purpose, 'Driven by Dreams'.
Creativity, personal design freedom, and an
exclusive experience-that's what modern
luxury means to us." Making dreams a reality
is the responsibility of the Production and
Logistics department. "We make dreams
come true. That's what drives us," explains
Albrecht Reimold, who oversees the
department. "We bring the best of two worlds
together: industrial production excellence
for extraordinary quality and manufacturing
expertise in car customization."
18
LEFT Ding Yi's iconic
motifs were applied with
the greatest care
RIGHT The Porsche
Taycan-a work of art
on wheels
Sonderwunsch
Milestones Craftsmanship
19
with the greatest care
Taycan has been fine-tuned
The design of the new
18 min
13
So a life with Porsche and other
quality brands I identify with allows
me to be part of a community with
shared values?
I can confirm that for Porsche. It's not
about mass consumption. Porsche is
special-innovative and yet highly durable.
Unflappable, with great attention to detail.
A Porsche always cuts a fine figure, whether
it's on the racetrack, at one of our Experience
Centers, parked in front of the opera house, or
cruising along the great boulevards. It's also
important to us to consistently pursue our
ambitious sustainability targets and the social
responsibilities of Porsche. We're strategists
and doers here, too. It's important to the large
community of Porsche customers and fans that
we as a company assume responsibility. That,
too, is part of our identity.
You emphasize just how innovative
and detailed Porsche has been over
the decades. The iconic 911 has been
proof of that for 60 years.
Pioneering spirit is a common thread throughout
the model's entire history. Groundbreaking
innovations have found their way from the
racetrack to the 911 road car. One such example
is the turbocharger, which was developed in the
1970s-first in the legendary Le Mans race car
and then in the 911 Turbo production cars. The
technology has continued to improve over time.
Take for instance the variable turbine geometry,
which ensures optimal flow for all operating
modes and was integrated into the 911 in 2006.
Another example is the Porsche dual clutch
transmission (PDK), which proved its worth in
racing and was then incorporated into the 911
model line in 2008. It's just about impossible to
imagine the 911 without it today. Or the sporty
all-wheel drive, which helped the 959 win the
Paris-Dakar Rally in 1986 and made its debut
a short time later in the 911 Carrera.
Sustainable mobility will be even
more of a concern for all future
Porsche projects.
Yes. The car I drive is part of my personality. In
a broader sense, that also applies to values and
products in other segments. Fashion is a prime
example. People buy certain clothes and even
furniture because they identify with them. Take
me, for example. I drive a 911 and a Taycan,
prefer Apple devices, and have a Barcelona chair
by Mies van der Rohe. Many of our customers
are open-minded and design-oriented and value
modern technology. Everyone has aspirations
and dreams-and we want to fulfill these with
our sports cars.
Like technology, performance and timeless
design, sustainability needs to play a larger
role in our sports cars. A current example
is high-performance battery cells. We're
working with our subsidiary, the Cellforce
You're also going your own way with
your commitment to eFuels.
We think about climate protection as a whole,
which is why we've opted for a double "E"
solution: electromobility and complementary
eFuels. Renewable, synthetic fuels allow
combustion engines to operate potentially
nearly carbon-neutral. We're thinking in
terms of solutions for existing cars. There are
currently 1.3 billion cars with combustion
engine on the road today, many of which are
quite old. As an admixture in fuel, eFuels can
reduce CO2 emissions. Aviation and shipping
also requires synthetic fuels. Our eFuels pilot
facility in southern Chile has been producing
synthetic fuel since the end of 2022. The
system is designed for a maximum production
capacity of 130,000 liters, with the fuel initially
used for the Porsche Mobil 1 Supercup and
other lighthouse projects.
And now you're going one step
further and optimizing the facility.
Is this another groundbreaking
achievement?
Absolutely. It's based on the direct air
capture (DAC) process, which we view as
highly relevant future technology on the
verge of series development. By extracting
larger amounts of carbon dioxide from the
atmosphere, this technology can potentially
help achieve global climate targets. We're
working with partners to integrate this DAC
technology into our eFuels pilot facility.
And the final question: You often talk
about sustainability. Is it a matter
that's close to your heart?
Without a doubt. Sustainability is one of the
most important responsibilities of our time. It's
everyone's job to protect the world for future
generations. We at Porsche aim to assume
responsibility for sustainable operations-for
the environment and for society. That's very
important to me personally.
80%
Group, to develop a cell with a much higher
percentage of silicon in the anode and
therefore much higher energy and power
density. The Cellforce cells are the ideal form
of energy storage for high-performance all-
electric sports cars.
Success is always the result of teamwork.
And we're a strong team. We've managed to
continue developing Porsche over the years
and find new motivation time and again after
all these years of success. At the center of it all
are our products, which combine our Porsche
values with state-of-the-art technology.
For us, it's all about thrilling our customers
and fulfilling their dreams with each and
every car. Financial successes are the result
of a successful strategy. We've managed
to more than double our sales revenue and
operating profit in recent years. But there
are no coincidences in the automotive
industry. Success takes planning. We have a
consistent strategy with a concrete concept
for implementation. For me, it's important that
we don't rest on our laurels. As in motorsport,
every race begins at the starting line. If I don't
refocus my efforts every time and have the
drive to win, I won't be the first to cross the
finish line.
And won't it take a lot of courage, too?
in 18 minutes
EU taxonomy
228
Environment
339
Notes to the consolidated statement of financial
position
Other notes
236
Social
250
Mr. Blume, Porsche has again
achieved some record figures in
your eighth year as Chairman of the
Executive Board, and the results are
tangible. How does this multi-year
success story make you feel?
Milestones
Contents
LO
5
MAGAZINE
214
316
210 Sustainability management and organization
307
New and amended IFRS not applied
129
GOVERNANCE
205
PORSCHE AG HGB FINANCIAL STATEMENTS
291
Currency translation
8
129
(CONDENSED VERSION)
292 Accounting policies
304 Segment reporting
131
Political engagement and lobbying activities
210
NON-FINANCIAL STATEMENT 2023
Management of relationships with suppliers
including payment practices
FULLY CHARGED
Governance
our sights set on the future. An interview with
60
PORSCHE
DRIVE TECHNOLOGY
Six decades, six cylinders. Innovations
improve the 911 without compromising
its identity.
Milestones Magazine
We have successful developments behind us and
CHANGE
50
Resilience in the revolution.
Porsche embraces the megatrends
of industrial transformation.
Fully Charged
Porsche has long been charting a
successful course. In this interview,
Chairman of the Executive Board,
Oliver Blume, examines both the past
and the future of the sports car
manufacturer. A conversation
about strong teamwork, consistent
strategy, effective planning, and
sustainable operations.
9
The new Taycan charges
from 10 to 80 percent
7
Calculated risk. Investments
in start-ups with strategic
and economic value.
60
28
VISION
34
STREAMLINING
New dimensions of dynamism.
The Macan sets benchmarks-both
in technology and aesthetics.
6
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
Oliver Blume, Chairman of the Executive Board.
TEAM SPIRIT
Networking at the highest level. Two
Executive Board members take the
digitalization of vehicles to a new level.
16
CRAFTSMANSHIP
Tradition and trends inspired
by dreams. The process from
customization to a one of a kind.
44
The activities of the automotive segment cover the vehicles
business field as well as the other business fields services and
design. The vehicles business field includes the procurement,
production, development and sale of vehicles as well as related
services.
AUTOMOTIVE SEGMENT
→ Notes to the consolidated financial statements-Segment reporting
The Porsche AG Group consists of the automotive and financial
services segments. The reconciliation of the segments to the
Porsche AG Group relates to transactions between the two
segments that are subject to elimination. The activities of the
two segments cover the regions Germany, Europe without
Germany, North America excluding Mexico, China including
Hong Kong, as well as rest of the world.
The structure of investments in Porsche AG remained
unchanged from the fiscal year 2022. Volkswagen AG indirectly
holds, via Porsche Holding Stuttgart GmbH, 75.4% of
Porsche AG's share capital. Porsche Automobil Holding SE
directly holds around 12.5% of the share capital. The remaining
share capital is in free float. To our shareholders
Dr. Ing. h.c. F. Porsche Aktiengesellschaft ("Porsche AG") is the
parent company of the Porsche AG Group (Porsche AG and its
fully consolidated subsidiaries) and has its registered office in
Stuttgart. Further information can be found in the list of
shareholdings pursuant to section 313 of the German
Commercial Code (HGB). → Notes to the consolidated financial
statements-50. List of shareholdings
Organization
BUSINESS MODEL
Purpose of the company
→ GRI 2-1
FUNDAMENTAL INFORMATION ABOUT THE GROUP
↑↓ ↑ 0 |||
180
Procurement
"In the beginning, I looked around but could not find the car I'd
dreamt of. So, I decided to build it myself." These famous words
from Ferry Porsche describe the aspiration of the Porsche AG
Group. Its business purpose is to manufacture and sell luxury
sports cars and engines of all kinds as well as other parts and
components for these and other technical products. In addition,
the purpose of the company includes performing development
work and design engineering, including vehicle and engine
construction; consulting and development in the field of data
processing as well as the production and distribution of data-
processing products; sale of merchandise and commercial
exploitation of brand rights, including those containing the word
"Porsche". Also included are all other activities that are
technically or economically related, including the commercial
exploitation of intellectual property rights. Financial services are
another business purpose, in particular finance and mobility
services for customers and dealers.
Procurement is centrally organized in Weissach and has a global
network of suppliers. This enables the Porsche AG Group to
purchase production materials and capital goods as well as
services worldwide in the required quality. In this context, the
Porsche AG Group is also focusing on start-ups and software
suppliers. Through the integration of the procurement
organizations of the Volkswagen Group brands, the Porsche AG
Group is able to leverage group-wide synergies through
improved availability of production materials and cost
advantages.
-2,114
The headquarters of Porsche AG and the production facilities for
the Taycan, 911 and 718 model series as well as customer
sports vehicles from Porsche Motorsport are located in
Stuttgart-Zuffenhausen. The Porsche AG Group also maintains
production facilities in Leipzig, where the Macan and Panamera
model series are produced.
€ million
Automotive sales revenue
37,349
34,599
Total research and development costs
2,834
2,651
of which: capitalized development
costs
2,081
1,951
Capitalization ratio¹ (%)
R&D ratio² (%)
73.5
73.6
7.6
7.7
Research and development costs
recognized
2022
2023
The development site in Shanghai became fully operational in
2023, which included an increase in personnel. In the long term,
infotainment and connect systems as well as driver assistance
systems (DAS) and highly automated driving (HAD) functions
are to be developed for the Chinese market together with
Chinese partners. This is to be done in close cooperation with
Porsche Digital China, which was founded in early 2021, and
Porsche Engineering China, which was founded in 2014.
Overall, as of the reporting date, the Porsche AG Group
employed 6,699 persons in the area of research and
development (2022: 6,299 persons).
33,689
35,241
39,397 36,823
336,280 321,321
Panamera
Taycan
Production
In 2023, 39,397 Taycan units were manufactured in Stuttgart-
Zuffenhausen. Additionally, all the vehicles of the 911 model
series (55,655 units) rolled off the production line at the main
plant. Furthermore, 12,652 units of the 718 Boxster/Cayman
were produced in Zuffenhausen.
At the Leipzig plant, the Porsche AG Group produced a total of
121,023 vehicles, which equates to 36.0% of total production.
There were 87,334 units of the Macan model series and
33,689 Panamera produced in Saxony.
As was already the case in 2022, the locations in Zuffenhausen
and Leipzig were net neutral carbon in manufacturing all
vehicles.
in the income statement
At the other production locations such as the Volkswagen
Group's multi-brand site in Bratislava (Slovakia) as well as in
Malaysia, 96,600 units of the Cayenne model series were
produced. In addition, 10,953 units of the 718 Boxster/Cayman
model series were completed at the Osnabrück site.
PRODUCTION IN ZUFFENHAUSEN
A sophisticated control and production principle allowed the
assembly of all two-door sports cars-the 911, 718 Boxster and
Cayman model series-on one production line at the main plant
in Zuffenhausen. Highly individual customer wishes were
integrated directly into series production thanks to the flexible
production system. This also applied to the Taycan, which is
produced on its own assembly line with the flexi-line. In the
summer of 2023, the sports car production plant underwent
extensive conversion work to enable the production of electric,
two-door sports cars alongside models with boxer engines. This
included expanding the assembly line, purchasing new
automated guided vehicles (AGVS) and setting up new testing
and finishing areas.
PRODUCTION IN LEIPZIG
The Leipzig plant produced the Macan and Panamera model
series. The site is currently shaping up for electromobility. With
the next generation of the Macan a fully electric variant will be
produced in Leipzig for the first time. This included establishing
a completely new body shop for the future electric SUV.
Expanding the plant will allow Leipzig to produce three different
drive types on one production line in the future: Gasoline and
hybrid models as well as fully electric vehicles.
RESEARCH AND DEVELOPMENT
Since the founding of Porsche AG, its focus has been on
innovative research and development as well as the subsequent
implementation in vehicles ready for series production.
Research and development plays a key role for sustainable value
enhancement in the Porsche AG Group. The vast majority of
research and development activities as well as the employees
working in this area relate to Porsche AG. The cross-brand
development network in the Volkswagen Group also
strengthens the future viability of the Porsche AG Group.
In the fiscal year 2023, the Porsche AG Group spent
€2,834 million on research and development (R&D), compared
to €2,651 million in the prior-year period. The R&D ratio stood
at 7.6% (2022: 7.7%). Additions to capitalized development
costs stood at €2,081 million, thus exceeding the comparable
figure in 2022 of €1,951 million. This reduced the capitalization
ratio compared to the prior-year period from 73.6% to 73.5%
due to a change in the project mix and different stages of
capitalization for current vehicle projects. At €1,712 million
(2022: €1,484 million), research and development costs
recognized in the income statement were up on the prior-year
level. Amortization of capitalized development costs contained
therein amounted to €960 million (2022: €784 million). The
total spend on research and development related to the
automotive segment.
In the reporting period, more than half of R&D expenses were
attributable to the transition of the product range towards
electromobility. After the market launch of the first fully electric
model series Taycan, the focus is now on the development of a
fully electric Macan, 718 and Cayenne. In parallel to the efforts
being made in the area of electromobility, model series with
combustion/hybrid technology such as the 911, the Panamera
and the Cayenne are also being further developed.
Production sites
98,113
1,712
of which: amortization of capitalized
Leipzig
Combined Management Report Business development
191
↑ ↓ ↑ 0 |||
192
OVERALL STATEMENT ON BUSINESS
DEVELOPMENT AND THE ECONOMIC SITUATION
The Porsche AG Group successfully completed its first fiscal
year after the IPO and continued to pursue its efforts in the field
of electromobility. In its anniversary year celebrating "75 years
of Porsche sports cars", the Porsche AG Group achieved all the
economic targets set for the fiscal year 2023.
The fiscal year 2023 continued to be influenced by a
challenging macroeconomic situation, also as a result of
geopolitical conflicts and tensions. Shortages and disruptions in
the global supply chains eased, reducing the impact on vehicle
availability. The automotive sector continued to be
characterized by intense competition, technological change and
increasing environmental awareness. In this environment, the
Porsche AG Group recorded a slight increase in deliveries to
320,221 vehicles (2022: 309,884 vehicles).
The Porsche AG Group noticeably increased its sales revenue
and operating profit in the fiscal year 2023. Sales revenue
increased from €37,637 million in 2022 to €40,530 million in
2023, an increase of 7.7%. Operating profit also rose by 7.7%
from €6,772 million to €7,284 million. The Porsche AG Group's
return on sales was therefore 18.0%, as in the prior year. The
development of the return on sales is due on the one hand to
higher group sales with positive product mix and price effects.
On the other hand, costs were kept constant in relation to sales
revenue. The automotive EBITDA margin increased to 25.7%
(2022:25.2%).
The positive contribution from automotive EBITDA, the changes
in working capital and the increase in capital expenditure led to
an automotive net cash flow of €3,973 million in 2023 (2022:
€3,866 million). The automotive net cash flow margin stood at
10.6% (2022: 11.2%).
Comparison of forecast with actual business development
Most important key performance indicators
Porsche AG Group
Sales revenue
Forecast for 2023
Actual business development
in annual report 2022
2023
36.0%
2023
Zuffenhausen
32.0%
development costs
960
784
Research and development costs
recognized
in the income statement³ (%)
1
2
1,484
4.6
Total research and development expenses in relation to capitalized
development costs.
Total research and development costs in relation to automotive sales revenue.
3 Total research and development expenses in relation to automotive sales
revenue recognized in the income statement.
PERSONNEL
As of the reporting date, the Porsche AG Group had
42,140 employees, an increase of 7.6% compared to the prior-
year reporting date. On average, the Porsche AG Group had
41,043 employees in the fiscal year 2023.
Further information on the workforce of the Porsche AG Group
can be found in the non-financial statement. → Social
32.0%
Other
sites
4.3
Return on sales
Automotive segment
96,600
41,947
18,080
DELIVERIES
The Porsche AG Group exhibited robust growth in the fiscal year
2023 and achieved a slight increase in deliveries. Overall, the
sports car manufacturer delivered 320,221 vehicles over the
past 12 months, up 3.3% compared with 2022.
Share of deliveries by region
16.3%
24.5%
Rest of
the world
24.8%
China²
10.1%
Germany
1 North America excl. Mexico
2023
21.9%
Europe without
Germany
26.9%
North America'
The Porsche Cayenne was the model with the highest number
of deliveries. It was handed over to 87,553 customers last year
(down 8.4%). The decrease compared to 2022 is due to the
staggered introduction of the new generation worldwide as well
as delivery delays due to a necessary software update for the
hybrid models. This was followed by the Macan with
87,355 units delivered, which is on a par with the prior year. The
Porsche 911 also remained extremely popular with
50,146 deliveries (up 24.1%). The sports car limousine
Panamera achieved 34,020 deliveries (down 0.4%) in the last
year of its life cycle. The new generation of the luxury saloon,
which was unveiled in November, will be available to customers
from 2024. Deliveries of the 718 Boxster and 718 Cayman
models came to 20,518 (up 12.7%).
Demand for the all-electric Taycan remained consistently high.
In 2023, the Porsche AG Group recorded 40,629 deliveries
worldwide (up 16.7%).
In the reporting period, the proportion of purely battery-
powered electric vehicles (automotive BEV share) stood at
12.8% (2022: 11.3%). → Environment
188
187
Combined Management Report Business development
The Porsche AG Group, including its cooperation partners,
increased the overall number of contracts for financing and
leasing by 4.2% to 345 thousand contracts as of December 31,
2023 (December 31, 2022: 331 thousand contracts).
In the USA, economic output increased by 2.4% (2022: 1.9%) in
the reporting year. Here too, the US Federal Reserve continued
with its restrictive monetary policy as a result of inflation
remaining high and the strained labor market, raising the key
interest rate a total of four times in 2023. The unemployment
rate remained at a low level in the reporting year. In Canada,
GDP grew by 1.1% (2022: 3.8%).
CHINA INCL. HONG KONG
Chinese GDP grew by 5.4% (2022: 3.0%) in the reporting year,
stronger than in the prior year. This development was positively
influenced by the Chinese government lifting its "Zero-Covid"
strategy.
SECTOR-SPECIFIC ENVIRONMENT
Market development for the automotive segment
In the fiscal year 2023, the global volume of the passenger cars
market was up noticeably on the prior year at 76.6 million
vehicles. While the regions Germany and China incl. Hong Kong
grew noticeably, the regions Europe excluding Germany and
North America excl. Mexico even recorded significant growth. In
addition to the weak prior-year figures, these developments
were due to the fact that shortages and disruptions in the global
supply chains eased and therefore had less of an impact on
vehicle availability. While the supply situation for intermediates
improved compared to 2022, it was, among other factors, the
consequences of the Russia-Ukraine conflict and pull-forward
effects due to expiring subsidies at the end of the prior year that
had a dampening effect on the development of new
registrations in some markets.
In addition to fiscal policy measures, the sector-specific
environment was primarily influenced by the economic
situation, which contributed to the uneven development of sales
in the markets in the past fiscal year. While real purchasing
power fell in many places and vehicle prices remained at a high
level, order backlogs were reduced at a high level worldwide
thanks to increased vehicle availability. The fiscal policy
measures included tax cuts and increases, the introduction,
expiry and adjustment of incentive programs and buyer's
premiums as well as import tariffs. Sanctions were imposed as a
result of the conflict in Ukraine, which restricted the production
and sale of vehicles in particular in Russia.
GERMANY
At 2.8 million units (up 7.3%), the number of new car
registrations in Germany in 2023 was noticeably higher than the
weak level of the prior year. Easing shortages and disruptions in
global supply chains had a positive effect on vehicle availability
in relation to the overall passenger car market and backlogs
from the prior year were processed.
Automotive BEV share
EUROPE WITHOUT GERMANY
In Central and Eastern Europe, the passenger car market volume
increased significantly by 23.6% to 2.3 million vehicles in the
fiscal year 2023, following the very sharp decrease seen in the
prior year. The number of sales also developed largely positively
in the individual markets of Central Europe.
NORTH AMERICA EXCL. MEXICO
In the region North America excl. Mexico, sales figures for
passenger cars in the fiscal year 2023 rose to 17.3 million
units-an increase of 12.3% year on year. In the USA, the volume
stood at 15.6 million units, an increase of 12.3%. In Canada too,
sales figures increased significantly by 12.5% to 1.7 million
vehicles.
CHINA INCL. HONG KONG
In the region China incl. Hong Kong, the number of new
registrations of passenger cars increased by 5.5% to
22.2 million units in 2023. The development of the Chinese
passenger car market was shaped by the expiry of government
subsidy and purchase incentive programs at the end of the
fiscal year 2022, which led to pull-forward effects in vehicle
purchases and consequently to declining registration figures at
the beginning of 2023. Demand recovered over the course of
the fiscal year, partly as a result of price discounts and ongoing
regional development programs, while the competitive situation
became increasingly fierce.
Market development for the financial services
segment
Demand for automotive financial services was high in 2023,
although higher interest rates put pressure on the demand for
financial services in almost all regions.
Demand for the products and services of the financial services
segment, which is calculated as the ratio of leased or financed
new vehicles to the total number of deliveries in the markets of
the segment (penetration rate), stood at 40.1% as of December
31, 2023 (2022: 40.8%). While demand for financial services
products declined in the region Europe without Germany
compared to the prior-year period, demand developed positively
in the regions North America excl. Mexico and rest of the world.
In the regions Germany and China incl. Hong Kong, the share
was stable at the prior-year level or slightly below the prior year.
In Western Europe (excluding Germany), the number of new
registrations for passenger cars in 2023 rose significantly by
16.1% to 8.8 million vehicles. In all other major markets for
passenger cars, development was positive in 2023: the UK (up
17.9%), Italy (up 18.8%) and France (up 16.1%) were able to
exceed their prior-year levels significantly.
Cayenne
of Porsche AG Group
2 China incl. Hong Kong
11.3%
2021
2022
2023
12.8%
↑↓ ↑ 0 |||
190
PRODUCTION
The Porsche AG Group produced 336,280 vehicles in total in
the fiscal year 2023, an increase of 4.7% on the prior year.
Production of the Porsche AG Group
Units
2023
2022
911
718 Boxster/Cayman
Macan
55,655
23,605
87,334 91,117
40,629 34,801
309,884
320,221
Deliveries
Taycan
In the domestic market of Germany, 32,430 customers received
their vehicle, an increase of 9.9%. In the sales region of Europe
without Germany, the Porsche AG Group delivered
70,229 vehicles in the past year. This is 12.0% more than in the
prior year. In North America excl. Mexico, the Porsche AG Group
made 86,059 deliveries (up 8.6%)-the largest sales region in
2023. In China incl. Hong Kong, 79,283 vehicles were handed
over to customers (down 15.0%). The significant decrease is
largely attributable to the continuing challenging economic
situation in this region. As a result, the supply volume was
brought into line with the demand situation and the market
distribution was balanced across all sales regions, which
compensated for the decline in China. In addition to the
noticeable growth in North America, the sales region rest of the
world also developed positively with a 15.7% increase in
deliveries. Accordingly, 52,220 customers took delivery of their
vehicle in the region rest of the world.
1 The performance indicator "deliveries" reflects the number of vehicles handed
over to end customers. This may take place via group companies or
independent importers and dealers. In the Porsche AG Group, this differs from
unit sales as a relevant driver of sales revenue. Unit sales in the Porsche AG
Group are designated as those sales of new and group used vehicles of the
Porsche brand, which have left the automotive segment for the first time,
provided there is no legal repurchase obligation by a company in the
automotive segment.
Deliveries of the Porsche AG Group
Units
2023
2022
13.7%
911
50,146
20,518
40,410
18,203
87,355 86,724
Cayenne
87,553
95,604
Panamera
34,020 34,142
718 Boxster/Cayman
Macan
€40 to €42 billion
Between 17% and 19%
€ million
40,530
2022
2021
€3,866 million
11.2%
€3,676 million
12.1%
Automotive net cash flow margin as % and Automotive net cash flow in € million
of Porsche AG Group
As of the end of the fiscal year, the automotive net cash flow
increased slightly to €3,973 million (2022: €3,866 million). The
positive contribution from automotive EBITDA, the changes in
working capital and the cash outflows from the increase in
automotive capital expenditure led to an automotive net cash
flow margin of 10.6% (2022: 11.2%).
Compared to the prior-year period, cash outflows from the
investing activities of current operations increased from
€3,989 million to €4,282 million. The increase was largely
attributable to the higher automotive capital expenditure of
€1,964 million (2022: €1,642 million) and capitalized
development costs €2,081 million (2022: €1,951 million). The
Porsche AG Group continued to invest in various vehicle
projects, the electrification and digitalization of products and in
production sites. The changes in equity investments mainly
consisted of existing investments in financial assets.
Cash outflows in automotive working capital amounted to
€2 million (2022: cash inflows of €334 million). The automotive
working capital was largely affected by the cash outflows of
€671 million caused by the change in inventories (2022: cash
outflows of €1,013 million). Despite the improved situation
compared to the prior year, the increase in vehicle inventories in
the current fiscal year, among other things in connection with
the market launch of the new Cayenne, was responsible for this
development. Further cash outflows of €279 million (2022:
cash outflows of €202 million) related to the change in
receivables. Cash inflows from the change in liabilities of
€578 million (2022: cash inflows of €1,016 million) had a
positive impact on the automotive working capital. While trade
payables increased year on year, there was a decrease in other
liabilities from other taxes. Cash inflows from the change in
other provisions decreased to €370 million (2022: cash inflows
of €532 million).
Automotive cash flows from operating activities increased by
€401 million to €8,256 million (2022: €7,855 million).
Automotive financial position
Cash outflows from financing activities of €3,708 million
(2022: cash outflows of €1,089 million) was primarily
attributable to the cash outflows from profit transfer and
dividends of €4,895 million (2022: cash outflows of €3,361
million). These consisted of the final profit transfer to Porsche
Holding Stuttgart GmbH of €3,979 million and the dividend
payment of €916 million resolved at the end of the first half of
the year. In the past fiscal year, the change in asset-backed
securities in the financial services segment was the main driver
of changes in other financing activities in the form of cash
inflows of €1,186 million (2022: cash outflows of
€786 million).
Cash outflows from investing activities amounted to €1,203
million and decreased by €5,403 million (2022: cash outflows
of €6,606 million). In contrast to the increased cash outflows
from investing activities of current operations in the automotive
segment, the change in investments in securities and time
deposits as well as loans resulted in cash inflows of €3,119
million (2022: cash outflows of €2,502 million). Returns from
the reversal of cash investments of surplus liquidity in the
Volkswagen AG Group led to this contrasting development in
cash flow from investing activities.
Cash outflows in working capital of €1,866 million (2022: cash
outflows of €1,168 million) comprised the changes in the
automotive segment and the cash outflows from the financial
services segment in the changes in leased assets of
€1,322 million (2022: cash outflows of €536 million) and
chance in financial services receivables of €645 million (2022:
cash outflows of €983 million).
At €7,023 million, the Porsche AG Group's cash flow from
operating activities in the fiscal year was at the prior-year level
(2022: €7,114 million), which was mainly due to the positive
contribution from profit before tax. This was offset by cash
outflows for income tax payments of €2,190 million (2022:
cash outflows of €2,370 million). The lower outflows in the
form of income tax payments compared to the prior-year period
are mainly due to payments relating to other periods in the prior
year. In the current year, payments were largely recognized in
the correct period.
FINANCIAL POSITION
2023
10.6%
-
€3,973 million
10,549
-2,869
-2,353
-1,787
-1,655
335
232
7,284
198
6,772
18.0
91
308
Income tax
7,375
-2,218
7,081
Production
↑ ↓ ↑ 0 ||
18.0
11,606
↑ ↓ ↑ 0 ||
2022
Automotive operating profit
2022¹
2023
€ million
€513 million (2022: €6,425 million). With automotive sales
revenue of €37,349 million, automotive return on sales stood at
18.6% (2022: 18.6%). Due to positive product mix and price
effects, automotive EBITDA increased by €868 million to
€9,594 million (2022: €8,726 million). Accordingly, the
automotive EBITDA margin stood at 25.7% (2022: 25.2%).
Automotive EBITDA margin
Automotive operating profit of €6,938 million in the fiscal year
2023 exceeded the figure of the prior-year period by
Automotive results of operations
Earnings per ordinary share came to €5.66 and per preferred
share to €5.67. Earnings per ordinary share and per preferred
share have been determined on the basis of a total of
455,500,000 shares in each category.
intercompany profits compared to the prior year. As a result,
profit after tax increased by €190 million to €5,157 million in
the reporting period.
Due to the higher effective tax rate of 30.1% (2022: 29.9%),
income tax did not increase in proportion to the profit before
tax, rising to €2,218 million (2022: €2,114 million). The
increase in the tax rate is due to a shift from lower taxed
countries to higher taxed countries, tax effects from planned
dividends and lower effects from the elimination of
The financial result came to €91 million (2022: €308 million).
The decline is mainly due to lower interest income as a result of
the spin-off of the loan receivable from Porsche Holding
Stuttgart GmbH implemented as part of the IPO. In addition,
adjusted interest rates used to measure provisions had a
negative impact on the financial result. By contrast, the
securities held in the special funds benefited in particular from
the overall positive development of the capital markets and the
higher interest rate level. Additionally, the financial result was
positively impacted by a reversal of an impairment loss on
Bertrandt AG that has been accounted for using the equity
method.
Accordingly, the operating profit of the Porsche AG Group
increased by €512 million to €7,284 million in the fiscal year
2023 (2022: €6,772 million). The operating return on sales of
the Porsche AG Group thus stood at 18.0% (2022: 18.0%).
€7,420 million
The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements-Effects of new or amended IFRS).
4,967
5,157
Profit after tax
6,938
6,425
Depreciation, amortization and
impairment losses
2021
€8,726 million
€9,594 million
25.7%
25.2%
Financial services sales revenue increased to €3,444 million
(2022: €3,292 million). Financial services operating profit
decreased to €302 million in 2023 (2022: €341 million). The
decrease was mainly due to the measurement of interest rate
hedges, to derivatives outside of hedge accounting as part of
regular refinancing activities as well as a lower portfolio margin
due to a delayed pass-through of the higher refinancing costs.
Furthermore, there were fewer reversals of provisions for credit
risks compared to the prior-year period. As a result, financial
services return on sales decreased to 8.8% (2022: 10.3%).
Financial services results of operations
1 The prior-year figures have been adjusted (see explanations on IFRS 17
→ Notes to the consolidated financial statements-Effects of new or amended
IFRS).
2023
34,599
25.2
Automotive EBITDA margin (%)
37,349
Automotive sales revenue
8,726
9,594
Automotive EBITDA
2,301
2,656
25.7
-27,089
-28,924
37,637
Sales revenue by region (excluding hedges)
14.1%
Rest of
the world
China²
11.9%
Germany
2023
21.4%
Europe without
Germany
29.2%
North America'
economic situation. In the region China incl. Hong Kong, the
Porsche AG Group brought supply into line with demand and
compensated for this decline with positive sales in all other
regions. Accordingly, the Porsche AG Group recorded growth in
the regions rest of the world (up 12,036 vehicles), Europe
without Germany (up 9,641 vehicles) and Germany (up
3,309 vehicles).
Vehicle sales of the Porsche AG Group
Units
2023
2022
911
53,741
40,715
In regional terms, with a total of 92,012 vehicles sold, North
America excl. Mexico is the largest market, with a significant
increase in sales of 14.9%. This was counterbalanced by the
region China incl. Hong Kong with a decrease of 17.7% to
79,331 vehicles sold, which was attributable to the challenging
The Cayenne was the bestselling series with 92,866 vehicles
sold and a slight decrease of 4.1%, followed by the Macan with
90,161 vehicles. The largest relative growth was recorded for
the 911 (up 13,026 vehicles; up 32.0%), the 718 Boxster/
Cayman (up 4,003 vehicles; up 21.8%) and the Taycan
(up 5,967 vehicles; up 17.5%).
In the fiscal year 2023, the Porsche AG Group sold
333,605 vehicles. This corresponds to a 6.3% increase in unit
sales compared to the prior-year period (2022:
313,721 vehicles).
The Porsche AG Group generated sales revenue of
€40,530 million in the fiscal year 2023. This is an increase of
7.7% on the prior year (2022: €37,637 million) and is largely
due to higher vehicle sales coupled with positive product mix
and price effects. The development of the Chinese renminbi and
US dollar currencies in particular had the opposite effect on
sales revenue.
%
18.0
Automotive net cash flow margin
Automotive EBITDA margin
Automotive BEV share
Between 10% and 12%
%
10.6
Between 25% and 27%
Between 12% and 14%
%
718 Boxster/Cayman
25.7
12.8
Combined Management Report Business development
193
↑↓ ↑ 0 |||
194
RESULTS OF OPERATIONS, FINANCIAL POSITION
AND NET ASSETS
Return on sales as % and sales revenue in € million
of Porsche AG Group
RESULTS OF OPERATIONS
%
22,395
18,392
Macan
2023
↑ ↓ ↑ 0 ||
196
Condensed income statement of the Porsche AG Group
€ million
2023
2022'
Automotive EBITDA margin as % and Automotive EBITDA in € million
2022
of Porsche AG Group
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Net other operating result
Operating profit
Return on sales (%)
Financial result
Profit before tax
40,530
Sales revenue
NORTH AMERICA EXCL. MEXICO
2021
€37,637 million
90,161
89,767
Cayenne
92,866 96,800
34,386 33,958
Panamera
Taycan
Vehicle sales
€40,530 million
40,056 34,089
333,605 313,721
Gross profit increased accordingly by 10.0% to €11,606 million
(2022: €10,549 million), therefore resulting in a gross margin
of 28.6% (2022: 28.0%).
Distribution expenses increased by €516 million to
€2,869 million. In proportion to sales revenue, this is an
increase of 7.1% (2022: 6.3%). The increase is due, among
other things, to increased sales activities such as investments in
the brand and product events, the digitalization strategy, a
stronger commitment to motorsport and activities to mark the
anniversary year celebrating "75 years of Porsche sports cars".
Administrative expenses increased from €1,655 million to
€1,787 million. In proportion to sales revenue, these were on a
par with the prior year at 4.4% (2022: 4.4%). Net other
operating result increased by €103 million to €335 million
(2022: €232 million).
16,0%
€33,138 million
1 North America excl. Mexico
China incl. Hong Kong
18,0%
18,0%
The cost of sales rose by €1,835 million to €28,924 million
(2022: €27,089 million) and was therefore in proportion to
sales revenue at 71.4% (2022: 72.0%). Despite supplier cost
increases, cost of sales increased less thanks to changes in the
product mix.
In the Central and Eastern European advanced economies, real
gross domestic product (GDP) recorded real growth in absolute
terms of 2.6% (2022: 1.1%). Economic output in Central Europe
thus grew at a somewhat slower pace of 1.7% (2022: 4.5%). In
Eastern Europe, on the other hand, economic growth was
positive again for the first time since the start of the Russia-
Ukraine conflict at 3.6% (2022: down 2.8%). Inflation rates in
Central and Eastern Europe as a whole declined on average, but
remained at a high level.
23.3%
EUROPE
The Porsche AG Group aims to help shape the sustainable future
of mobility. This includes both products that are developed
taking into account sustainability aspects as well as its self-
image as a modern employer open to society and reliable
economic partner.
The "Sustainability" cross-cutting strategy therefore pursues a
holistic approach covering everything from environmental and
social aspects to responsible corporate governance.
Decarbonization and maintaining a circular economy along the
entire value chain are key. The Porsche AG Group promotes
diversity of views and focuses on making a commitment to
society. It also promotes sustainability in the supply chain as
well as transparent and responsible corporate governance.
The "Digitalization" cross-cutting strategy
The "Digitalization" cross-cutting strategy focuses on the
efficient use of the company's own competencies as well as
collaboration within the Volkswagen AG group and with external
partners. Shortening the time to market for new products, an
open-platform strategy and the use of artificial intelligence and
data-driven optimizations should make a major contribution to
the success of the business.
The "Organization" cross-cutting strategy
The "Organization" cross-cutting strategy addresses the
organizational alignment and optimization of the vertical
integration of the Porsche AG Group with regard to future
requirements. Processes should be made as effective and as
efficient as possible. At the same time, the Porsche AG Group is
also defining strategic value creation fields which will be
developed internally or by external suppliers in the future. This is
also closely related to decisions on strategic partnerships as a
supplement to traditional supplier relationships. New structures
and concepts are being worked on for this purpose.
The "Transformation" cross-cutting strategy
The focus of the "Transformation" cross-cutting strategy is on
the employees. They are to be provided with new ways and
methods of working. Leadership has an important part to play
when it comes to getting employees on board the
transformation journey: They should be notified about changes
promptly and be involved in processes so that all employees can
drive the transformation together. Long-term thinking and
business-minded actions are to be supported here.
Porsche AG's position as a top employee with high levels of
employee satisfaction also plays an important role.
Road to 20
The "Road to 20" program forms the basis for the Porsche AG
Group's long-term profitability target of an operating
consolidated return on sales of more than 20%. "Road to 20" is
also intended to optimize the resilience and profitability of the
Porsche AG Group. To achieve this, various areas are once again
being revisited-from product offering to pricing through to cost
structure.
The six cross-cutting strategies are setting the course, along
which the Porsche AG Group wants to expand its position for
current and future generations. The focus here is on the four
stakeholder groups: Customers, society, employees and
investors. The Porsche AG Group believes that the unwavering
focus on the needs of these groups will ensure sustainable
growth, which will also be supported by the "Road to 20"
program.
MANAGEMENT AND KEY PERFORMANCE
INDICATORS
Management and key figures
Based on the group strategy-Strategy 2030-this chapter
describes how the Porsche AG Group is managed and which key
figures are primarily used. The operating performance and the
related success of the Porsche AG Group are reflected in both
the financial and non-financial key figures as an integral part of
the internal management system. There were no changes in the
management process or the most important performance
indicators compared to the prior year.
Management process at the Porsche AG Group
At the Porsche AG Group, the continuous and close alignment of
the group strategy with the strategic and operational planning
ensures full transparency in the financial assessment and
evaluation of decisions on the direction to be taken. As a key
management element of the Porsche AG Group, the multi-year
operational plan, which is prepared once a year and generally for
a period of five planning years, is derived from a strategic plan
for the next ten years and approved by the Executive Board and
the Supervisory Board. The multi-year operational plan serves to
assess prerequisites for realizing the strategic projects as well
as formulating and safeguarding the group's targets, both
technically and financially. It is on this basis that all corporate
areas are coordinated regarding the cross-cutting strategies,
functions/processes, products and markets.
For the future orientation of the Porsche AG Group, the
individual planning content is determined on the basis of the
planning horizon:
-the cycle plan/product strategy and thus the product range
as the long-term strategic determinant of the vehicle
business and other mobility-related services,
- long-term sales planning that shows market and segment
developments and is used to determine the delivery volume
for the Porsche AG Group and
- capacity and utilization planning for the individual factories.
The aligned results of the upstream planning processes flow
into the financial planning as a last step in the multi-year
operational planning. For this purpose, the financial planning of
the Porsche AG Group, including the segments and business
fields, consists of the income statement, the financial and
balance sheet planning, the profitability and liquidity planning as
well as the investments as a prerequisite for the future product
alternatives and alternative courses of action. The multi-year
operational planning is then used to derive the binding
targets/target recommendations for the first planning year,
details of which are then finalized down to the level of the
operational cost centers and subsidiaries in the budget planning
for the individual months.
During the year, the budget is reviewed each month to
determine the degree of target achievement. In this regard,
target/actual and prior-year comparisons, variance analyses
and-if required-action plans are key instruments for corporate
management to ensure that the budgeted targets are reached.
For the current fiscal year, monthly rolling forecasts are
performed for the next three months and for the year as a whole
and are backed up as standard by two detailed forecasts during
the year and, if necessary, adjusted to reflect the latest
developments. Current opportunities and risks are also taken
into account when preparing the forecast to the extent that
their occurrence is considered to be probable. The management
process can thus ensure short-term adjustments and
implementation programs to secure the forecast, also taking
volatile conditions into account. In principle, the focus of
management during the year is on adjusting current activities in
line with requirements. Moreover, each current forecast
provides the starting point for the upcoming multi-year
operational plan/the budget planning for the following fiscal
year.
Combined Management Report Fundamental information about the group
The "Sustainability" cross-cutting strategy
In the transition phase, Porsche AG offers three drive systems:
fully electric models, plug-in hybrids and pure internal
combustion engines. Porsche AG is also investing in the
development of synthetic fuels, known as e-fuels, with a focus
on reducing the CO2 emissions of its fleet.
In this regard, electromobility is at the heart of the Porsche's
product strategy. The Porsche AG Group aims to deliver more
than 80% of its new vehicles with all-electric drive systems by
2030-depending on demand and the development of
electromobility in the individual regions of the world. Primarily in
the development and procurement of the new family of electric
vehicles, synergies are created in particular through the use of
platforms and modules by other brands of the Volkswagen AG
Group.
The "Products" cross-cutting strategy
The Western European economy grew by 0.4% (2022: 3.5%) in
the reporting year, slower than in the prior year. This was partly
due to high inflation rates, which had a negative impact on
consumer sentiment. Business sentiment also deteriorated
across all sectors. In addition, restrictive monetary policy
measures to combat inflation had a negative impact on both
private consumption and investment activity.
182
181
Combined Management Report Fundamental information about the group
→ Risk and opportunity situation as of December 31, 2023
The report on risks and opportunities presents and comments
on the external factors influencing the business of the
Porsche AG Group.
EXTERNAL FACTORS
The activities of the financial services segment include the
leasing business, dealer and customer financing, service and
insurance brokerage business as well as mobility services for
vehicles of the Porsche brand. Within selected markets, the
segment's services are also offered for other brands of the
Volkswagen Group, in particular the Bentley and Lamborghini
brands. The segment includes the products and services of
Porsche financial services companies, which, depending on the
market, are provided by the company itself or in cooperation
with local partners.
FINANCIAL SERVICES SEGMENT
183
Indirect online sales for the Porsche AG Group are conducted via
its digital platform and sales partners. The digital vehicle search
can now be accessed in over 100 markets around the globe.
Porsche dealers use this platform to offer their immediately
available new and used vehicles online. This includes basic
models as well as exclusive variants.
The sales network comprises over 900 sales partners in more
than 120 markets worldwide. Within this sales network, all
major importers (18 legally independent entities) and selected
Porsche dealer companies (17 legally independent entities) are
part of the Porsche AG Group. → Deliveries
Sales
Weissach is home to the Porsche Research and Development
Center, where Porsche vehicles are developed from first sketch
to series production. Weissach is also home to the development
of infotainment and connect functions as well as vehicle-related
digital solutions. The Shanghai development site complements
these development activities with specific solutions for the
Chinese market. Research and development
Development
For the Cayenne model series, the Porsche AG Group uses other
production sites. The Cayenne model series is produced at the
Volkswagen Group's multi-brand site in Bratislava, Slovakia.
Some models of this series are assembled at a third-party
assembly plant in Kulim District, Kedah, Malaysia. These are
intended for the Malaysian market. The Volkswagen Group also
has the capacity to produce the 718 series on a contract
manufacturing basis at the Osnabrück plant. In addition to this,
the Porsche AG Group operates a pilot series center in
Sachsenheim as a central production facility to provide
prototype vehicles for future Porsche series models. → Production
STRATEGIC DIRECTION
OF THE PORSCHE AG GROUP
Porsche AG aims to further expand its strong position as a
profitable manufacturer of exclusive sports cars, in particular by
systematically implementing Strategy 2030 of the Porsche AG
Group. This consists of the cross-cutting strategies Customer,
Products, Sustainability, Digitalization, Organization and
Transformation. The cross-cutting strategies form the center of
the Porsche AG Group's strategy and are supplemented by the
"Road to 20" program. Together, these contribute to the group's
corporate goals. Two Executive Board members are responsible
for each cross-cutting strategy and for the "Road to 20"
program. Cross-functional teams implement the cross-cutting
strategies and the strategic topics allocated to them.
The "Customer" cross-cutting strategy
The "Customer" cross-cutting strategy focuses on the
relationship with our customers. The clear aim is to excite
customers when purchasing and using their vehicle. A customer
excitement index is used to systematically measure and manage
the customer relationship from initial contact through to the
purchase of a product.
All brick-and-mortar retail formats follow the "Destination
Porsche" retail concept, which has already been rolled out in
more than 70 of the over 800 Porsche centers worldwide since
the end of 2020, and more than 600 others are to follow by the
end of the decade.
↑↓ ↑ 0 |||
As a modern luxury brand, Porsche intends to expand its
customer base internationally by addressing new target groups
as well as further increasing loyalty among its existing
customers. Omni-channel sales and the development of the
Porsche communities are designed to grant them access to the
brand online and in the physical world.
Most important key performance indicators
Automotive net cash flow margin is defined as the ratio of cash
flows from operating activities less cash flows from investing
activities of current operations to sales revenue, each in the
automotive segment. The investing activities of current
operations exclude the changes in investments in securities,
loans and time deposits of the automotive segment. The net
cash flow margin also plays an important role in assessing the
excess funds from operating activities and the associated
financial resilience of the automotive segment. → Financial position
AUTOMOTIVE EBITDA MARGIN
Automotive EBITDA is defined as automotive operating profit
(EBIT) plus depreciation/amortization and impairment
losses/reversals of impairment losses on property, plant and
equipment, capitalized development costs and other intangible
assets, each in the automotive segment. Automotive EBITDA
margin is defined as the ratio of automotive EBITDA to
automotive sales revenue. The Porsche AG Group believes that
the automotive EBITDA margin is a meaningful financial
indicator for all stakeholders to evaluate the business
development, operating performance and profitability of the
automotive segment over time. → Results of operations
CORPORATE GOVERNANCE DECLARATION
The content of the Group Corporate Governance Declaration
required by sections 289f and 315d HGB is contained in the
→ Corporate Governance Declaration and online at
> http://investorrelations.porsche.com/en/corporate-governance/.
Combined Management Report Fundamental information about the group
185
186
↑↓ ↑ 0 |||
BUSINESS DEVELOPMENT
MACROECONOMIC ENVIRONMENT
Development of global economy
The Russia-Ukraine conflict continued to cause increased
uncertainty about the development of the global economy.
Large sections of the community of Western states imposed an
extensive trade embargo on Russia and partially excluded
Russia from the international financial market. Russia itself, in
its role as an energy exporter, restricted gas deliveries to
Europe. In the reporting year, despite the resulting supply
shortages, the energy and commodity markets started to
steady, although some energy and commodity prices are still at
a relatively high level. There is also a risk of high inflation
continuing in the face of wage developments on the labor
markets.
After a slump in global economic output in 2020, it recovered
again in 2021 as a result of base and catch-up effects and
normalized further in 2022 despite the Russia-Ukraine conflict.
The global economy recorded positive growth of 2.7% overall in
the fiscal year 2023 (2022: up 3.1%). The advanced economic
and emerging markets continued to recover, although the
advanced economies grew more slowly.
Regional developments depended on the extent to which the
central banks implemented restrictive monetary policies to curb
high inflation. This was mainly done by raising interest rates and
reducing bond holdings, which had a negative impact on private
consumption and investment. The other decisive factor was
how hard the advanced economies were hit by the
consequences of the Russia-Ukraine conflict. Prices for energy
and many commodities were down on the prior year, with
shortages of intermediates and commodities easing somewhat.
Global nominal goods trade declined in the reporting year.
GERMANY
184
The German economy contracted by 0.2% in the reporting year
(2022: growth of 1.9%). The seasonally adjusted
unemployment rate rose on average. At the same time, the
average annual inflation rate fell but remained relatively high.
AUTOMOTIVE NET CASH FLOW MARGIN
→ Results of operations
↑↓ ↑ 0 ||
RETURN ON SALES
Most important key performance indicators
Porsche AG Group
The return on sales (ROS) of the Porsche AG Group is defined as
the ratio of group operating profit to group sales revenue. The
Executive Board of Porsche AG uses return on sales to measure
the operating profitability of the Porsche AG Group.
Sales revenue (€ million)
Return on sales (%)
Automotive segment
Automotive net cash flow margin (%)
- Automotive BEV share (%)
BEV SHARE
The BEV share is defined as the proportion of purely battery-
powered electric vehicles (BEV) in relation to deliveries, i.e., the
total number of new vehicles delivered to end customers. The
driver for the automotive BEV share is the sale of fully electric
vehicles. The BEV share is used to assess the transformation
and electrification of the vehicle portfolio. → Deliveries
The current development of the most important performance
indicators can be found in the explanations on the results of
operations, financial position and net assets. The anticipated
development of the most important financial indicators for the
fiscal year 2024 is described in the report on expected
developments. Report on expected developments
- Automotive EBITDA margin (%)
Other relevant performance indicators
The sales revenue of the Porsche AG Group primarily consists of
automotive sales and reflects the group's market success.
Alongside the automotive segment, the financial services
segment also contributes to the development of sales revenue.
→ Results of operations
Derived from the strategy and the underlying strategic
objectives, the Porsche AG Group is managed on the basis of the
most important performance indicators described below:
- Automotive return on sales (%)
-Financial services return on sales (%)
- Automotive return on investment (%)
· Automotive research and development costs (€ million)
Automotive capital expenditure (€ million)
SALES REVENUE
Deliveries (units)
In addition, the following financial and non-financial
performance indicators have been defined for use in the
management of the company and supplement the most
important performance indicators accordingly:
Automotive net liquidity (€ million)
Equity
149
154
Excess of covering assets over pension and similar obligations
0
0
Prepaid expenses
25,393
26,856
Equity and liabilities
Subscribed capital
911
Retained earnings
Distributable profit
Provisions
Provisions for pensions and similar obligations
Other provisions
Liabilities
911
3,822
14,733
3,822
Capital reserves
9,759
Intangible assets
16
3,420
Dec. 31, 2023
Dec. 31, 2022
Assets
Fixed assets
Property, plant and equipment
Financial assets
2,438
2,396
6,898
6,456
35
6,144
15,480
11,974
Current assets
Inventories
Receivables
Other assets
2,935
5,777
2,957
11,055
1,032
686
Cash on hand and bank balances
3,122
3,420
↑↓ ↑ |||
11,573
As the parent company of the Porsche AG Group, Porsche AG is
generally subject to the same → Business development, risks and
opportunities as well as expected developments. The → Report on
expected developments section comments on the forecast, while the
→ Report on risks and opportunities section comments on the risks and
opportunities.
Sales
In the fiscal year 2023, Porsche AG sold 332,681 vehicles in
total (2022: 317,018 vehicles). The increase of 4.9% is mainly
due to higher sales to importers and sales networks in Europe
and North America. By contrast, the Chinese market declined.
This decrease is largely attributable to the continuing
challenging economic situation in this region.
The Russia-Ukraine conflict, the sanctions and export-control
measures instituted in response as well as corresponding
countermeasures have had and continue to have an adverse
impact on the global economy, the global capital markets,
international trade, supply chains, the availability and prices of
raw materials including energy supplies as well as parts and
components.
Production
In the reporting year, Porsche AG manufactured a total of
228,727 vehicles (2022: 223,208 vehicles) at its Zuffenhausen
and Leipzig plants. In addition, Volkswagen Osnabrück GmbH
produced a further 10,953 vehicles on a contract basis.
Personnel
As of December 31, 2023, there were a total of 24,724 persons
(2022:23,025 persons), excluding employees at subsidiaries,
employed at Porsche AG. On average, Porsche AG had
24,176 employees in the fiscal year 2023.
RISKS FROM FINANCIAL INSTRUMENTS
When using financial instruments, Porsche AG is generally
exposed to the same risks as for the Porsche AG Group. An
explanation of these risks can be found in the → Report on risks and
opportunities.
DEPENDENT COMPANY REPORT
The Executive Board of Porsche has submitted to the
Supervisory Board the report required by section 312 AktG and
issued the following concluding declaration:
"We declare that Porsche AG received appropriate consideration
for each transaction with affiliated companies as defined by
section 312 AktG in the period from January 1 to December 31,
2023. This assessment is based on the circumstances known at
the time when the transactions were entered into".
Combined Management Report Porsche AG HGB financial statements (condensed version)
209
€ million
210
NON-FINANCIAL STATEMENT 2023
Porsche AG has prepared this non-financial statement, which is combined with the non-financial statement of the Porsche AG
Group, in accordance with the requirements of section 315c in conjunction with sections 289c to 289e of the German Commercial
Code (HGB), Article 8 of the EU Taxonomy Regulation and the Delegated Acts adopted thereunder. The GRI Sustainability Reporting
Standards were used as the framework. The information in this non-financial statement relates to the entire Porsche AG Group. If
information only relates to individual subsidiaries, this is expressly stated. All information on the Porsche AG Group also applies to
Porsche AG, unless stated otherwise. If Porsche AG is mentioned in the comments on objectives, due diligence processes, measures
and results, this should be understood to mean that Porsche AG is currently implementing the respective points throughout the
group, also against the background of future CSRD reporting, but that this has not yet been completed at the time of reporting.
SUSTAINABILITY MANAGEMENT AND
ORGANIZATION
The automotive industry plays an important role in the
transformation of business towards sustainability and the fight
against climate change. Therefore, the Porsche AG Group
developed the company systematically in line with its
Sustainability Strategy 2030 and further expanded
sustainability activities in the reporting year. More attention is
being paid to the entire vehicle value chain. The overarching
goal is to embed sustainability even more deeply into all
business activities.
The Sustainability Strategy 2030 classifies the key challenges
facing the Porsche AG Group into six strategy fields.
CO₂
BUSINESS DEVELOPMENT OF PORSCHE AG
916
26,856
516
5,649
5,291
4,959
3,881
3,673
9,172
8,632
Liabilities to banks
1,074
1,357
Advance payments received on account of orders
46
47
Trade payables
1,069
715
Other liabilities
1,907
9,940
4,096
12,059
Deferred income
553
25,393
Statement of financial position structure of Dr. Ing. h.c. F. Porsche AG as of December 31, 2023
Other taxes
↑ ↓ ↑ 0 |||
-63
31,839
30,317
Changes in inventories and other own work capitalized
84
383
Total operating performance
31,923
30,700
Other operating income
3,155
897
Cost of materials
-18,993
-17,545
Personnel expenses
-3,336
-3,624
Amortization, depreciation and impairment of intangible assets and property, plant and equipment
-1,662
-1,549
Other operating expenses
-4,580
2022
-5,289
2023
€ million
Non-current and current financial liabilities increased from
€9,480 million to €10,417 million. This increase mainly related
to the refinancing of the financial services business through
asset-backed securities, while the debenture bonds decreased
as a result of partial repayment.
Trade payables increased from €2,899 million to €3,490 million
compared to year-end 2022 in the ordinary course of business.
Current other liabilities decreased by €4,012 million to
€6,192 million compared to December 31, 2022. The decrease
is largely due to the last payment of the profit transfer of
€3,979 million for the fiscal year 2022 to Porsche Holding
Stuttgart GmbH.
Overall, current liabilities decreased by €3,012 million to
€13,567 million. Current liabilities expressed as a percentage of
total capital amounted to 26.9% (2022: 34.8%).
As of December 31, 2023, there were off-balance-sheet
contingent liabilities of €64 million. This is a €65 million
decrease compared to the prior-year period, primarily as a result
of fewer legal and product-related matters.
Off-balance-sheet other financial obligations increased by
€2,002 million to €5,392 million and essentially comprised
obligations from development, supply and service agreements.
PORSCHE AG HGB FINANCIAL STATEMENTS
(CONDENSED VERSION)
RESULTS OF OPERATIONS
In the reporting year, sales revenue increased by 5.0% on the
prior year from €30,317 million to €31,839 million. The
increase was largely due to higher unit sales coupled with
improved unit price realization as well as positive product mix
effects. Sales revenue was largely offset by cost of materials of
€18,993 million (2022: €17,545 million), personnel expenses
of €3,336 million (2022: €3,624 million) as well as other
operating expenses of €4,580 million (2022: €5,289 million).
The decrease in personnel expenses is due to the lower current
service cost for the company pension scheme.
Of other operating income of €3,155 million (2022:
€897 million), €227 million (2022: €300 million) related to
exchange rate gains. The contribution of shares in five importing
companies to Porsche Investments Management S.A. in return
for the contribution of new shares resulted in other operating
income of €2,283 million.
Cost of materials related to expenses for raw materials,
consumables and supplies and for purchased merchandise of
€16,141 million (2022: €15,061 million) and to expenses for
purchased services of €2,852 million (2022: €2,484 million).
The disproportionate 8.3% increase in the cost of materials
compared to sales revenue was due in particular to the
continued high level of inflation and the associated supplier
receivables as well as higher purchased services for research
and development activities.
Other operating expenses of €4,580 million (2022:
€5,289 million) include exchange rate losses of €399 million
(2022: €370 million). The decrease in other operating expenses
was mainly driven by lower expenses in connection with the
measurement of derivative financial instruments. This was
offset by higher sales and IT expenses.
The investment result comprised income from equity
investments of €689 million (2022: €1,628 million), income
from profit and loss transfer agreements of €1,299 million
(2022: €274 million), expenses from equity investments of
€53 million (2022: €0 million) and expenses from loss
absorption of €4 million (2022: €42 million). The increase in
income from profit and loss transfer agreements was due to the
profit transfer from Porsche Nordamerika Holding GmbH,
Ludwigsburg, of €787 million, which included a dividend from
Porsche Cars North America, Inc., Atlanta, of US$911 million in
the fiscal year 2023. Income from equity investments primarily
comprised income from Porsche Hong Kong Ltd., Hong Kong,
Porsche Middle East and Africa FZE, Dubai, 000 Porsche
Russland, Moscow, Porsche Brasil Importadora de Veículos
Ltda., São Paulo, and Porsche Taiwan Motors Ltd., Taipei. The
decrease in income from equity investments was due to the
dividends from Porsche Hong Kong Ltd, Hong Kong, in the prior
year. Expenses from equity investments related to impairment
losses of P3X GmbH & Co. KG (€30 million) as well as
000 Porsche Russland, Moscow (€23 million).
The negative interest result of €37 million (2022: €63 million)
primarily contained interest income from affiliates, interest
expenses from discounting non-current provisions as well as
interest expenses for the debenture bonds issued.
Income tax for the fiscal year 2023 amounted to
€1,525 million. The low tax rate of 18.2% was mainly due to the
additional profit under commercial law in connection with the
transfer of shares in five importer companies to Porsche
Investments Management S.A. in return for granting new
shares.
The control and profit and loss transfer agreement in place with
Porsche Holding Stuttgart GmbH ended on December 31,
2022. There was therefore no profit transfer in the fiscal year
2023. The net income for the year before appropriation of profit
amounted to €6,840 million.
Combined Management Report Porsche AG HGB financial statements (condensed version)
205
↑↓ ↑ ||
206
Income Statement of Dr. Ing. h.c. F. Porsche AG
Sales revenue
Investment result
1,932
1,860
The share of fixed assets in relation to total assets was 61.0%
(2022: 44.6%). Property, plant and equipment increased by
€442 million to €6,898 million (2022: €6,456 million);
investments exceeded depreciation, amortization and
impairment losses. The increase in fixed financial assets by
€3,022 million to €6,144 million was primarily the result of a
change in the intragroup reorganization of the investment
structure through the contribution of shares in Porsche Cars
Great Britain Ltd., Porsche France S.A.S., Porsche Italia S.p.A.,
Porsche Schweiz AG, and Porsche Taiwan Ltd. in exchange for
the granting of new shares in Porsche Investments
Management S.A., which led to additions of €2,334 million and
disposals of shares of €51 million. Furthermore, the shares in
Cellforce Group GmbH, Tübingen, as well as the loan receivables
at Porsche AG as of December 31, 2023 due from Cellforce
Group GmbH, Tübingen, in return for granting new shares at
carrying amount were transferred to Porsche Erste
Beteiligungsgesellschaft mbH, Stuttgart.
3,420
916
This resulted in additions of €410 million and disposals of €71
million. Furthermore, additions of €255 million resulted from
the acquisition of the remaining non-controlling interests in
MHP Management- und IT-Beratung GmbH, Ludwigsburg.
Current assets amounted to €9,759 million as of December 31,
2023 (2022: €14,733 million). The lower current assets were
primarily due to the decrease in receivables from affiliated
companies amounting to €5,407 million. These lower
receivables were related to a decline in loans granted to other
group companies (down €2,530 million), lower cash pool
receivables (down €1,938 million) and a lower level of trade
receivables (down €781 million). By contrast, receivables from
profit transfers from subsidiaries increased by €968 million.
Equity came to €11,573 million as of the reporting date (2022:
€5,649 million). The equity ratio stood at 45.6% (2022: 21.0%).
Porsche AG's subscribed capital of €911 million was made up of
50% ordinary shares and 50% non-voting preferred shares.
Ordinary and preferred shares are no-par-value bearer shares.
The holders of non-voting preferred shares receive from the
annual distributable profit an additional dividend of €0.01 per
preferred share above the dividend allocable to the ordinary
share.
The capital reserves remained unchanged compared to the prior
year at €3,822 million.
The provisions for pensions primarily related to retirement
benefits for employees of Porsche AG. The pension obligations
were fully covered by provisions. Provisions for pension
obligations (pension provisions) were discounted at the average
market interest rate of the past ten fiscal years (section 253 (2)
sentence 1 HGB). These were €112 million (2022:
€370 million; difference pursuant to section 253 (6) HGB)
lower than the carrying amount for pension provisions that
would have been recorded as of December 31, 2023 had the
seven-year average interest rate been applied.
Other provisions increased by €244 million from €3,580 million
to €3,824 million, mainly due to the increase in warranty
provisions (up €142 million), personnel provisions
(up €91 million), the provision for exceeding emission limits
(up €106 million) and provisions for onerous contracts in
connection with the measurement of derivative financial
instruments (up €64 million).
The decrease in liabilities including deferred income by €7,926
million to €4,649 million (2022: €12,575 million) was mainly
the result of €4,340 million in cash pool liabilities due to a
change in the cash pool structure and €3,979 million from the
termination of the control and profit and loss transfer
agreement in place with Porsche Holding Stuttgart GmbH as of
December 31, 2022. From the fiscal year 2023 onwards, there
was no profit transfer.
Overall, Porsche AG assessed the past fiscal year as positive,
particularly against the backdrop of a persistently challenging
macroeconomic situation, which was also linked to the
consequences of geopolitical conflicts and tensions. Vehicle
availability improved due to easing shortages and disruptions in
global supply chains. Porsche AG was always able to fulfill its
financial obligations in the fiscal year 2023.
DIVIDEND POLICY
As part of its financial strategy, Porsche AG is pursuing the goal
with its dividend policy of a continuous dividend development
that allows its shareholders to have an appropriate share of the
success of the business. The proposed amount of the dividend
aims to take the financial targets into account, primarily that of
securing a sound financial basis.
Porsche AG currently aims in the medium term to distribute an
annual dividend of around 50%. The distribution rate is based on
the IFRS profit/loss of the group after taxes.
The control and profit and loss transfer agreement in place
between Porsche AG and Porsche Holding Stuttgart GmbH
ended pursuant to section 307 of the German Stock
Corporation Act (AktG) as of the end of the fiscal year on
December 31, 2022.
In accordance with section 58 (2) AktG, the dividend payment
by Porsche AG is based on the net retained profits reported in
the annual financial statements of Porsche AG prepared in
accordance with the German Commercial Code. Based on these
annual financial statements of Porsche AG, following the
transfer of €3,420 million to other retained earnings, net
retained profit of €3,420 million is eligible for distribution.
It will be proposed to the annual general meeting that a partial
amount of €1,048 million (2022: €456 million) from the
distributable profit of €3,420 million (2022: €916 million) be
used to pay a dividend of €2.30 per ordinary share carrying
dividend rights and a partial amount of €1,052 million (2022:
€460 million) be used to pay a dividend of €2.31 per preferred
share carrying dividend rights as well as a partial amount of
€1,320 million to transfer to other retained earnings.
Combined Management Report Porsche AG HGB financial statements (condensed version)
207
As of December 31, 2023, total assets decreased by
€1,463 million from €26,856 million to €25,393 million. Fixed
assets increased by €3,506 million, while current assets
decreased by €4,974 million.
NET ASSETS AND FINANCIAL POSITION
Distributable profit
Profit carryforward
Interest result
-37
8,402
5,387
-1,399
-1,525
Profit after tax
6,877
3,988
Decarbonization
-37
Profit transferred under a profit and loss transfer agreement
208
-9
-3,979
6,840
Reduction in assets from spin-off
Withdrawal from capital reserves
-11,704
12,595
25
-3,420
Profit before tax
Tax allocations
Income tax
Withdrawal from retained earnings
Transfer to retained earnings
Net income for the year
Circular economy
Overall responsibility for
>
Of this total, €39,075 million, or 96.4% of consolidated sales
revenue, was attributable to economic activity "3.3 Manufacture
of low-carbon technologies for transport" and classified as
taxonomy-eligible. This includes sales revenue after sales
deductions from the sale of new and used vehicles, from sales
of original parts, from the rental and lease business, from
interest and similar income as well as sales revenue directly
related to vehicles, such as workshop and other services.
Taxonomy-eligible sales revenue of €99 million, or 0.2% of
consolidated sales revenue, was attributable to economic
activity "3.18 Manufacture of automotive and mobility
components" and classified as taxonomy-eligible. This includes
the sale of engines and powertrains for all-electric vehicles to
third parties.
Of the taxonomy-eligible sales revenue attributable to economic
activity "3.3 Manufacture of low-carbon technologies for
transport", €5,143 million or 12.7% met the screening criteria
used to measure the substantial contribution to climate change
mitigation. This includes all of the all-electric vehicles and
certain plug-in hybrids. In 2023, this amounted to 49 thousand
vehicles, 42.5% more than in the prior year. The very sharp
increase in sales of taxonomy-aligned vehicles was due to both
EU Taxonomy: sales revenue
a significant increase in sales of the Taycan and also to the first-
time inclusion of taxonomy-aligned plug-in hybrids. In relation
to the total sales revenue of the Porsche AG Group, this resulted
in an increase in taxonomy-aligned sales revenue of 2.8
percentage points.
In addition, the taxonomy-eligible sales revenue attributable to
economic activity "3.18 Manufacture of automotive and
mobility components" met the screening criteria used to
measure the substantial contribution to climate change
mitigation.
Taking into account the DNSH criteria and the minimum
safeguards, €5,143 million (2022: €3,787 million²) or 12.7%
(2022: 10.1%) of consolidated sales revenue attributable to
economic activity "3.3 Manufacture of low-carbon technologies
for transport" and €99 million or 0.2% of consolidated sales
revenue attributable to economic activity "3.18 Manufacture of
automotive and mobility components", which had to be reported
on for the first time, were taxonomy-aligned.
Of the Porsche AG Group's total sales revenue in the fiscal year
2023,
€39,175 million (2022: €36,704 million²), or 96.7% (2022:
97.5%), was taxonomy-eligible sales revenue
€5,243 million (2022: €3,787 million), or 12.9% (2022:
10.1%), was taxonomy-aligned sales revenue
Sales revenue
Substantial contribution to
climate change mitigation
Compliance
with DNSH
criteria
Compliance
with
minimum
safeguards
Taxonomy-aligned
sales revenue
CAPITAL EXPENDITURE
Capital expenditure (CapEx) refers to the following items in the
IFRS consolidated financial statements: additions to intangible
assets, additions to property, plant and equipment and additions
to leased assets. These are reported in → Notes to the consolidated
financial statements-13. Intangible assets, → Notes to the consolidated financial
statements-14. Property, plant and equipment, → Notes to the consolidated
financial statements-15. Leased assets. Additions from business
combinations, each of which is reported under "Changes in
consolidated group", are also included. By contrast, additions to
goodwill are not included in the calculation.
In fiscal year 2023, additions in the Porsche AG Group as
defined above amounted to
-€2,454 million from intangible assets
€1,797 million from property, plant and equipment
€2,900 million from leased assets (mainly vehicle leasing
business)
Additions from changes in the consolidated group, which
amounted to €0 million in fiscal year 2023, can also be added to
this figure. Total capital expenditure to be included in
accordance with the EU Taxonomy therefore came to €7,151
million.
All capital expenditure is associated with economic activity "3.3
Manufacture of low-carbon technologies for transport". The
taxonomy-eligible capital expenditure amounted to €7,151
million or 100% of the Group's capital expenditure.
To determine the substantial contribution, the financial figures
were compiled based on the vehicle model and drive
technology, in the same way as for sales revenue. Where
possible, capital expenditure was directly attributed to vehicles.
It was included if the vehicles in question make a substantial
contribution to the climate change mitigation objective. Any
capital expenditure directly attributable to vehicles that do not
statements, which amounted to €40,530 million in fiscal year
2023. Notes to the consolidated financial statements-1. Sales revenue
meet the screening criteria was not included. Capital
expenditure that was not clearly attributable to a particular
vehicle was taken into account on a proportionate basis using
allocation formulas. Allocation formulas were used based on the
planned vehicle volumes for the group companies. Depending
on the primary business activity, the overarching Porsche AG
Group allocation formulas were used for sales companies, for
example, and allocation formulas based on the location were
used for production companies.
The turnover defined in the EU Taxonomy corresponds to sales
revenue as reported in the IFRS consolidated financial
218
The strategy field also covers circular economy projects at the
sites. The Porsche AG Group is pursuing the long-term vision of
a zero-impact factory at its vehicle production sites, in other
words production that has the smallest negative impact on the
environment possible.
The product-related requirements for passenger cars and light
commercial vehicles are reflected in the implementation of the
statutory end-of-life vehicle requirements in conjunction with
the type approval of the vehicle models. In addition to this, there
are targets and measures for the use of recycled materials in
new vehicles.
POLLUTION PREVENTION AND CONTROL
An economic activity is considered to be ecologically
sustainable if this activity does not result in a substantial
increase - compared to the situation before the activity
commenced of pollutant emissions in the air, water or
ground. The automotive sector generally is already heavily
regulated, as can be seen, among other things, from the publicly
available Global Automotive Declarable Substance List (GADSL).
Approval and monitoring processes are implemented with the
aim of ensuring compliance with the current legislation and
internal regulations applicable to the business operation. In this
context, the Porsche AG Group's analyses and evaluations
already also explore the use of alternative substances.
In July 2023, the EU Commission revised the DNSH criterion of
the EU Taxonomy. There is room for interpretation as to the
effects of the changed requirements for internal processes with
regard to substitution checks for substances of very high
concern (SVHC) for the reporting year 2023.
The Porsche AG Group has already established requirements
and processes that stipulate that SVHCs must generally be
avoided and replaced. Based on this, the Porsche AG Group
includes the production process materials and vehicle-related
components of the all-electric vehicles (BEV) in its analyses
with regard to the substances they contain and their suppliers in
order to assess the substitutability of SVHCS, taking into
account technical and economic criteria. In a pilot project, the
Porsche AG Group is testing the design of the processes to be
implemented, including the documentation of a substitution
check in accordance with the amended requirements of the EU
Taxonomy.
PROTECTION AND RESTORATION OF BIODIVERSITY AND
ECOSYSTEMS
In order to verify compliance with the requirements on
biodiversity and ecosystems, the relevant areas were identified.
Where biodiversity-sensitive areas are located close to a
production site, we checked whether a nature conservation
assessment had been performed and whether nature
conservation measures had been defined in the environmental
approvals and subsequently implemented. We also checked
whether a site's conservation status had changed.
Minimum safeguards
The minimum safeguards consist of the OECD Guidelines for
Multinational Enterprises, the United Nations Guiding Principles
on Business and Human Rights, the Fundamental Conventions
of the International Labour Organisation (ILO) and the
International Bill of Human Rights. The assessments confirm
that the Porsche AG Group meets the requirements of the
minimum safeguards in the reporting year.
The Porsche AG's Executive Board and Group Works Council
take their corporate responsibilities for human rights particularly
seriously and are committed to these conventions and
declarations and reiterate their support for the contents and
principles stated therein.
The German Supply Chain Due Diligence Act (LKSG) stipulates
certain due diligence obligations to avoid human rights and
environmental risks. These include carrying out risk analyses,
establishing preventive measures, remedial measures and
providing a complaints mechanism.
For its supply chain, the Porsche AG Group has systematically
added processes and measures to respect human rights to its
company-wide risk and supplier management systems. For its
own business, the Porsche AG Group uses its compliance risk
assessment to map the human rights and environmental issues
it considers relevant within Porsche as well as risks in
connection with its direct suppliers. The risk assessment forms
the basis for identifying appropriate measures.
Porsche AG Group operates a multistage complaints
management system that provides internal and external
complainants with a confidential communication channel for
reporting potential breaches of human rights and violations of
environmental duties.
If the Porsche AG Group determines that a violation of a human
rights or environmental obligation has occurred or is imminent
in its own business or at one of its direct suppliers, it takes
immediate action to prevent or end such violations or to
minimize the extent of the violation. If the Porsche AG Group
has factual indications of a potential violation of a human rights
or environmental obligation by an indirect supplier, the
Porsche AG Group exercises the available legal and actual
options to take immediate action to prevent or end such
violations or to minimize the extent of the violation.
Key performance indicators in accordance with the
EU Taxonomy Regulation
The EU Taxonomy defines sales revenue, capital expenditure
and operating expenditure as the key performance indicators
that must be reported on. The Porsche AG Group explains these
in the following. The tables prescribed by the EU Taxonomy are
also included at the end of this section.
The financial figures relevant for the Porsche AG Group are
based on the IFRS consolidated financial statements for the
fiscal year 2023. By differentiating between economic
activities, we have avoided double counting. Where possible, the
Porsche AG Group has directly assigned the figures within an
economic activity. For example, the financial figures were
compiled based on the vehicle model and drive technology. This
applies both to the vehicles themselves and to the
corresponding financial services and other services and
activities. Where this was not possible for capital expenditure
and operating expenditure, the figures were broken down using
allocation formulas. Allocation formulas were based on the
planned vehicle volumes. This data and planning form part of
multi-year operational planning covering the next five years, on
which the Executive Board and Supervisory Board have passed a
resolution.
The Executive Board of Porsche AG has delegated the
implementation of the obligations arising from the monitoring of
Porsche's due diligence with regard to human rights and
environmental matters to the Business & Human Rights Council,
which is made up of members from various disciplines and
reports directly to the Executive Board.
Combined Management Report Non-financial statement 2023
217
↑↓ ↑ 0 |||
SALES REVENUE
Taking into account the DNSH criteria and minimum
safeguards, capital expenditure of €2,743 million (2022:
€2,634 million) was taxonomy-aligned. This represents 38.4%
(2022: 43.6%) of the group's total capital expenditure. Of this,
€1,494 million related to intangible assets, €820 million to
property, plant and equipment and €430 million to leased
assets. For all-electric vehicles (BEV), this figure includes
additions to capitalized development costs of €1,297 million
and additions to property, plant and equipment of €810 million.
In absolute terms, taxonomy-aligned capital expenditure
increased slightly compared to the prior year. This is attributable
to the growing number of environmentally sustainable vehicle
projects in line with the EU Taxonomy. The moderate relative
decrease in taxonomy-aligned capital expenditure compared to
the prior year is mainly due to investments in connection with
the production set-up for the all-electric Macan, which was
largely completed in the fiscal year 2022.
Of the Porsche AG Group's total capital expenditure in the fiscal
year 2023,
€7,151 million (2022: €6,045 million), or 100% (2022: 100%),
was taxonomy-eligible capital expenditure
€2,743 million (2022: €2,634 million), or 38.4% (2022:
43.6%), was taxonomy-aligned capital expenditure
Y
Y
4,368
10.8
3.18 Manufacture of automotive and
mobility components
99
0.2
99
0.2
Y
Y
99
0.2
B. Taxonomy-non-eligible activities
Total (A + B)
1,355
40,530
3.3
1 All percentages relate to the total amount of sales revenue.
2
The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements - Effects of new or amended IFRS).
Combined Management Report Non-financial statement 2023
219
↑↓ ↑ 0 ||
of which taxonomy-aligned BEVS
12.7
5,143
Y
Economic activities
€ million
%'
€ million
%
Y/N
Y/N
€ million
%'
A. Taxonomy-eligible activities
39,175
TRANSITION TO A CIRCULAR ECONOMY
Environmentally compatible waste management in the
manufacturing process, the recycling and use of secondary raw
materials and a long product lifespan are key parts of the
Porsche AG Group's environmental management system. The
strategy field of a circular economy is part of the Porsche AG
Group's sustainability strategy and is divided into several fields
of action. Here, cross-functional teams work on various key
topics including recycling concepts for high-voltage
batteries, the use of circular materials in Porsche vehicles,
sustainable product design, avoiding plastic waste and concepts
for the reconditioning of vehicle components.
96.7
12.9
Y
Y
5,243
12.9
3.3 Manufacture of low-carbon
technologies for transport
39,075
96.4
5,143
12.7
Y
5,243
2 Diversity
The economic activities of the Porsche AG Group were
evaluated with respect to the sustainable use and protection of
water and marine resources looking at the three following
criteria: preserving water quality, avoiding water stress and
environmental impact assessment (EIA or similar processes).
Risks identified in the course of EIA investigations are examined
as part of approval procedures and, if relevant, result in
measures and official requirements. The Porsche AG Group
based the analysis primarily on ISO-14001 certificates, findings
from site approval procedures and other external data sources
with regard to sites in regions with a greater exposure to risks.
216
Sustainability is the responsibility of the Chairman of the
Executive Board, supported by the Member of the Executive
Board responsible for Production and Logistics and the Member
of the Executive Board responsible for Procurement. Their role is
that of sustainability strategy overseers for the Executive Board.
The Executive Board is the highest body in charge of sustainable
corporate development. It determines the fundamental
strategic direction and concrete sustainability targets in regular
strategy workshops. It also decides on particularly far-reaching
measures and flagship projects.
The Sustainability department within the General Secretary and
Corporate Development division is responsible for implementing
the sustainability strategy and works continuously to optimize
it. It realizes sustainability projects and manages the
sustainability bodies of Porsche AG. It also serves as the
interface with the Volkswagen Group, where it represents the
Porsche AG Group's sustainability management.
The Politics and Society department of the Communications,
Sustainability, and Politics division is responsible for internal
and external sustainability communications, strategic
stakeholder involvement, and non-financial reporting. It
engages in sustainability networks and represents the office of
Porsche's Sustainability Council.
1 The Porsche Strategy 2030 focuses on the four stakeholder dimensions:
customers, society, employees and investors. The Porsche AG Group aims to
become more sustainable with its Strategy 2030. "Sustainability" is one of six
cross-cutting strategies, together with "customer", "products", "digitalization",
"organization" and "transformation".
Combined Management Report Non-financial statement 2023
211
↑↓ ↑ 0 |||
212
The Environment and Sustainability Steering Committee is a
cross-departmental body comprising representatives of all the
relevant departments and determines the direction and content
of the sustainability strategy. It also handles decisions regarding
the road map and objectives within the strategy. It convened a
total of eight times in the reporting year. The Environment and
Sustainability Steering Committee forms working groups to
prepare, evaluate, and refine individual topics, projects, and
initiatives relating to sustainability. These assignments are
issued by the Environment and Sustainability Steering Group, to
which the Steering Committee reports.
The Environment and Sustainability Steering Group, which
determines the focal points and direction of the sustainability
strategy, is composed of the heads of the main departments. It
can be expanded flexibly as required and generally meets once a
quarter and prepares the Executive Board's decisions regarding
the sustainability strategy.
Another key body is the Porsche Sustainability Council. It was
formed in 2016 and institutionalizes the stakeholder dialog on
sustainability. The Council was restructured in the reporting
year. External specialists in business, science, politics, and civil
society advise the Executive Board and top management
regarding the strategic focus of sustainability regularly. The
members are independent and not bound by instructions. The
Executive Board has given the Council far-reaching rights to
information and consultation, as well as rights of initiative.
In 2023, the Porsche Sustainability Council held two meetings
with members of the Porsche AG Executive Board. The key
topics addressed included decarbonization and related
measures, the link between sustainability and digitalization as
part of Corporate Digital Responsibility, the materiality process
to identify strategic and communicative areas of focus and ESG
management in the context of the capital market.
Council members also held regular meetings with
representatives of its office and with experts from the
Porsche AG Group in the reporting year. Additionally, the
Porsche AG Group regularly involved members of the Council in
the development of the Porsche AG Group's sustainability
strategy.
An overview of sustainability organization
Porsche Executive Board
In total, non-current liabilities increased by €1,184 million to
€15,211 million. Non-current liabilities expressed as a
percentage of total capital amount to 30.2% (2022: 29.4%).
the topic of sustainability
Provides input
Sustainability department
Interface to the Volkswagen Group's
sustainability management
Manages the sustainability strategy and
the sustainability bodies
Implements sustainability projects
This is underpinned by the Group's sustainability guidelines.
They contain binding rules for the entire Porsche AG Group
concerning the organization, internal processes, topic
management, project implementation, and communication of
relevant sustainability topics. They enable the Porsche AG
Group to ensure that the sustainability strategy is known and
implemented throughout the Porsche AG Group. For
Porsche AG, the company's sustainability guidelines are seen as
the counterpart of the Group's sustainability guidelines. The
other subsidiaries are required to review the Group's guidelines
and implement them in similar documents.
Politics and Society department
Sustainability is enshrined as a central cross-cutting issue in
Porsche's Strategy 2030.1 Throughout the Group, it is anchored
in the organization with a clear internal structure and defined
responsibilities. This way, the Porsche AG Group wants to
address material topics systematically and effectively.
To control and measure sustainability in business processes and
contributions to ESG aspects in a targeted way, the Porsche AG
Group launched a software based ESG management system in
2021. In the reporting year, it was expanded further and a
central control and monitoring system for ESG data was put into
operation. Furthermore, the Porsche AG Group determined
performance indicators, which illustrate material non-financial
ESG contributions and transparently demonstrate the Porsche
business model's contribution to sustainable development.
Partner to society
Supply chain responsibility
Governance and transparency
The work done by the Porsche AG Group is closely aligned with
these fields of action. In doing so, the Porsche AG Group wants
to embrace its responsibility, bolster sustainable and value-
creating growth, and continuously reduce its environmental
footprint. It remains focused on the impact of its own business
activities and the expectations of stakeholders along the entire
value chain.
The Porsche AG Group evaluates its progress continuously in all
six fields of action of its Sustainability Strategy 2030. To this
end, the Porsche AG Group regularly engages in dialog with its
internal and external stakeholders and with recognized experts.
Where necessary, the Porsche AG Group then uses the findings
from this dialog to update its strategy.
The Porsche AG Group also aligns the six fields in the
Sustainability Strategy 2030 and its related activities with the
Sustainable Development Goals (SDGs) from the 2030 Agenda
of the United Nations. This helps guide the Porsche AG Group in
its efforts to make its own business activities even more
sustainable. They show how to reconcile economic progress,
social justice, and environmental compatibility.
The Sustainability Development Goals that
Porsche AG is concentrating on:
QUALITY
EDUCATION
8 DECENT WORK AND
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
RESPONSIBLE
12 CONSUMPTION
AND PRODUCTION
Qo
ECONOMIC GROWTH
13 ACTION
CLIMATE
PARTNERSHIPS
FOR THE GOALS
REDUCED
INEQUALITIES
More information on the Porsche AG Group's business model
can be found under Business model. In the reporting year, no
significant non-financial ESG (environmental, social,
governance) risks linked to the requirements of section 289c
HGB were identified in the Porsche AG Group. Additional
disclosures on ESG risks can be found under → Report on risks and
opportunities.
ESG management
The Porsche AG Group completed its IPO in 2022, which means
that the expectations of the capital market have become more
relevant, also in terms of sustainability in the context of
environmental, social, and governance (ESG) aspects. The
Porsche AG Group values an independent evaluation of its
performance in sustainability and is rated on ESG criteria by
selected independent rating agencies at regular intervals. The
Porsche AG Group considers this independent, external
assessment to be an important tool and source of impetus for
the continuous improvement of its sustainability management.
Sustainability organization
Manages sustainability communications
and stakeholder dialogue
Responsible for stakeholder management
Interface to the Porsche Sustainability Council
Reporting for the fiscal year 2023
Pursuant to the EU Taxonomy, the Porsche AG Group is required
to report on all environmental objectives for the first time for the
fiscal year 2023. In addition to climate change mitigation and
climate change adaptation, the criteria for the other four
environmental objectives (sustainable use and protection of
water and marine resources, transition to a circular economy,
pollution prevention and control, protection and restoration of
biodiversity and ecosystems) have now been defined. The
figures for sales revenue, capital expenditure and operating
expenditure relate to the fully consolidated companies included
in the Porsche AG Group's financial statements.
The EU Taxonomy contains wording and terminology that are
still subject to some uncertainty in interpretation and that could
lead to amendments in the reporting following later clarification
by the EU. There is ultimately the risk that the indicators
disclosed as taxonomy-aligned should have been evaluated
differently. The interpretations of the Porsche AG Group are set
out below.
Economic activities of the Porsche AG Group
The activities of the Porsche AG Group comprise the
development, production and sale of passenger cars. They also
include financial services and other services and activities.
Activities in these areas are suited under the EU Taxonomy to
making a substantial contribution to the environmental
objective of climate change mitigation by increasing low-carbon
mobility.
The analysis of the economic activities in the context of the EU
Taxonomy has not revealed any activities that contribute
specifically to any of the other five environmental objectives for
the Porsche AG Group.
Activities are mainly allocated to economic activity
"3.3 Manufacture of low-carbon technologies for transport" and
minimally to economic activity "3.18 Manufacture of
automotive and mobility components" as listed in the EU
Taxonomy's environmental objective of climate change
mitigation. Changes may be made to the economic activities in
the future as the rules around the EU Taxonomy are dynamically
evolving.
Economic activity "3.3 Manufacture of low-
carbon technologies for transport"
The Porsche AG Group allocates all activities in the group
associated with the development, production, sale (including
financial services), operation and servicing of vehicles to this
economic activity. This includes all passenger cars
manufactured by the Porsche AG Group, irrespective of their
drive technology, and also includes original parts.
The Porsche AG Group has detailed the vehicles manufactured
by model and drive technology and analyzed the CO2 emissions
associated with them in accordance with the currently
applicable requirements. In this way, the Porsche AG Group has
identified those vehicles among all of its taxonomy-eligible
vehicles that meet the screening criteria and with which the
substantial contribution to climate change mitigation is
measured. These include all of the Porsche AG Group's all-
electric vehicles (BEV). They also include passenger cars with
CO₂ emissions of less than 50 g/km pursuant to the WLTP until
December 31, 2025. This encompasses some of the plug-in
hybrids.
Economic activity "3.18 Manufacture of
automotive and mobility components"
This economic activity was added to the EU Taxonomy in the
reporting year to also include the components that play a key
role in reducing greenhouse gas emissions. Here, the
Porsche AG Group allocates the sale of engines and powertrains
for battery electric vehicles produced by it to third parties; this
essentially relates to the sale of these components to AUDI AG.
At this stage, other activities that are directly associated with
the primary business and that in the Porsche AG Group's view
should also be allocated to this economic activity have initially
not been included or have been interpreted as taxonomy-non-
eligible. This is because, as the rules of the EU Taxonomy
currently stand, it is still unclear where to record them in
accordance with the EU Taxonomy. These activities particularly
include the sale of engines and powertrains as well as parts
deliveries, the sale of independent products and licensed
production by third parties.
According to the current assessment, hedging transactions and
individual activities that the Porsche AG Group presents
primarily under "Other revenue" in the consolidated financial
statements do not conform to the descriptions of economic
activities in the EU Taxonomy, and have therefore been initially
classified as being taxonomy-non-eligible.
Do No Significant Harm (DNSH)
The DNSH criteria were analyzed in the reporting year for
economic activities covered by "3.3 Manufacture of low-carbon
technologies for transport" and "3.18 Manufacture of
automotive and mobility components".
An analysis was performed for each production site where
passenger cars are or will be produced that meet the screening
criteria for the substantial contribution of economic activities
"3.3 Manufacture of low-carbon technologies for transport" and
"3.18 Manufacture of automotive and mobility components", or
that are to meet them in future according to the Porsche AG
Group's five-year planning - based on the current
requirements.
The EU Taxonomy contains wording and terms that are subject
to interpretation uncertainties and occasionally goes beyond the
regulations applied in current operations. Below, the Porsche AG
Group sets out its interpretation and describes the main
analyses it used to examine whether there was any significant
harm to the other environmental objectives. The assessments
confirm that the Porsche AG Group meets the requirements of
the DNSH criteria in the reporting year.
CLIMATE CHANGE ADAPTATION
The Porsche AG Group performed a climate risk and
vulnerability assessment to identify which production sites may
be affected by physical climate risks. The physical climate risks
identified were analyzed on the basis of the lifetime of the
relevant fixed asset.
The Porsche AG Group's climate-based DNSH assessment is
based on Representative Concentration Pathway (RCP)-8.5 and
Shared Socioeconomic Pathway (SSP)5-8.5 by 2050 and thus
assumes the highest concentration of CO2 according to the
Intergovernmental Panel on Climate Change (IPCC). The
relevance of the identified threats was assessed for the local
environment and, if appropriate, the measures needed to
mitigate the risk have been developed.
Combined Management Report Non-financial statement 2023
215
- The activity makes a substantial contribution to one of the
environmental objectives by meeting the screening criteria
defined for this economic activity, e.g., level of CO2 emissions for
the climate change mitigation environmental objective
The activity meets the Do-No-Significant-Harm (DNSH) criteria
defined for this economic activity. These are designed to prevent
significant harm to one or more of the other environmental
objectives, e.g., from the production process or by the product
- The activity is carried out in compliance with the minimum
safeguards, which apply to all economic activities and relate
primarily to human rights and social and labor standards
An activity is only considered environmentally sustainable, i.e.,
taxonomy-aligned, if it meets all three of the following
conditions:
and ecosystems
Protection and restoration of biodiversity
Environment and Sustainability
Steering Group
Environment and Sustainability
Steering Committee
Sets sustainability priorities and strategic focus
Consolidates measures across all the
departments and devises the
strategic content for the areas of action
Subject-specific working groups
Develop and implement concrete sustainability
measures and programs
↑↓ ↑ |||
214
↑↓ ↑ 0 |||
EU TAXONOMY
Doing business in an environmentally sustainable way is one of
the central challenges of our time. The European Union (EU) has
defined criteria for determining the degree of environmental
sustainability of companies. With taxonomy-aligned
investments in development activities and in property, plant and
equipment, the Porsche AG Group is pursuing the goal of
shaping the future in an environmentally sustainable way as
envisaged by the Porsche Strategy 2030.
SUSTAINABLE USE AND PROTECTION OF WATER AND
MARINE RESOURCES
Background and objectives
The EU Taxonomy is a classification system for sustainable
economic activities. An economic activity is considered
taxonomy-eligible if it is listed in the EU Taxonomy and can
potentially contribute to realizing at least one of the following
six environmental objectives:
EU Taxonomy classification system
>
Climate change mitigation
>
Climate change adaptation
Sustainable use and protection of water and
marine resources
>
Transition to a circular economy
>
Pollution prevention and control
As part of the European Green Deal, the EU has placed the
topics of climate protection, the environment and sustainability
at the heart of its political agenda in order to achieve climate
neutrality by 2050. The financial sector is expected to play a
decisive role in realizing this objective, and in 2021 the EU
therefore published the Strategy for Financing the Transition to
a Sustainable Economy. This aims to support financing for the
transition to a sustainable economy and contains suggestions
for measures in the areas of financing the transition to
sustainability, inclusiveness, the financial sector's resilience and
contribution as well as global ambition. It is based on the EU
Action Plan from 2018 on financing sustainable growth and
contains the EU Taxonomy (Regulation (EU) 2020/852 and
associated delegated acts) as the main building block alongside
disclosures and tools.
204
Porsche
Sustainability Council
203
Cash flows from operating activities
-983
-645
Change in financial services receivables
-536
-1,322
Change in leased assets
556
366
Change in other provisions
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements-Effects of new or amended IFRS).
2 Including cash received from disposal of intangible assets and property, plant and equipment.
1,052
618
Change in liabilities (excluding financial liabilities)
3,866
3,973
Net cash flow
-247
-190
Change in receivables (excluding financial services)
-404
-248
Changes in equity investments
-1,010
-694
Change in inventories
-1,951
7,023
7,114
Automotive net liquidity
As of December 31, 2023, automotive net liquidity decreased
by €1,067 million to €7,215 million compared to the prior-year
reporting date. The main driver for this decline was the cash
outflow due to payment of the profit transfer and dividend for
the fiscal year 2022. Cash inflow from net cash flow caused net
liquidity to increase.
6,139
Cash and cash equivalents
2022
2023
Net change in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash flows from financing activities
-786
1,186
-3,361
-4,895
3,057
-6,606
-2,081
-1,203
-2,502
3,119
Change in investments in securities and time deposits as well as loans
-4,103
-4,322
Investing activities of current operations
Change in other financing activities
Profit transfer and dividends
Capital contributions
€ million
Since June 2023, a €2,500 million revolving credit facility
(€0 million drawn) has been in place with a syndicate of 21
national and international banks. In this context, the existing
€4,000 million master loan agreement with Volkswagen AG was
terminated by Porsche AG in June 2023 (€0 million drawn in
2022). Financial risk management and methods as well as opportunities
Automotive third-party borrowings decreased by €196 million
to €2,646 million in 2023 on account of repayments of financial
liabilities.
In 2023, cash and cash equivalents in the automotive segment
at the end of the period rose by €1,428 million to
€6,139 million (2022: €4,710 million). In addition, securities
and time deposits as well as loans decreased by €2,692 million
in 2023 to €3,723 million.
Cash flows from investing activities
4,710
Additions to capitalized development costs
-1,866
Income taxes paid
-1,013
-671
7,081
7,375
Profit before tax
334
-2
4,327
3,745
Cash and cash equivalents at beginning of period
7,855
8,256
Change in receivables (excluding financial services)
Change in inventories
Change in working capital
Cash flows from operating activities
2022¹
2023
€ million
2022'
2023
Condensed cash flows of the Porsche AG Group
€ million
Automotive net cash flow
200
↑↓ ↑ |||
-2,190
-2,370
-279
-202
Change in working capital
-1,642
-1,964
-40
-122
Other non-cash expense/income
Investments in intangible assets (excluding capitalized development costs)
and property, plant and equipment
366
251
Change in pension provisions
-3,989
-4,282
Investing activities of current operations²
-1,168
52
Share of profit or loss of equity-accounted investments
532
370
Change in other provisions
5
14
Gain/loss on disposal of non-current assets
1,016
578
Change in liabilities (excluding financial liabilities)
3,189
3,528
Depreciation and amortization²
34
Cash and cash equivalents at end of period
The €3,420 million increase in retained earnings compared to
the prior year related entirely to the transfer of the
proportionate net income for the fiscal year 2023 to other
retained earnings.
3,745
100.0
0.1
31
47,642
0.0
100.0
50,447
6
7.8
3,719
5,820 11.5
3.8
1,795
3.6
1,826
0.2
87
0.5
235
15.7
7,480
9.0
4,537
3.2
1,538
3.3
1,669
5,504 11.6
5,947 11.8
Inventories
Financial services receivables
Other financial assets and other receivables
Tax receivables
Combined Management Report Results of operations, financial position and net assets
5,826
€16 million to €4,360 million compared to December 31, 2022.
Furthermore, non-current other liabilities increased by
Pension provisions increased by €647 million in the fiscal year
2023 compared to the comparative period of 2022. The
increase is attributable to the decrease in the discount rate for
domestic pension obligations from 3.6% to 3.2% as well as the
current service cost.
Dividend payments of €916 million, which were resolved by the
Annual General Meeting of Porsche AG on June 28, 2023,
caused equity to decrease.
As of December 31, 2023, the equity of the Porsche AG Group
increased by €4,633 million to €21,668 million compared to
the figure from December 31, 2022. Profit after tax as well as
other comprehensive income, net of tax, caused equity to
increase by €5,627 million. Within other comprehensive
income, net of tax, the increase was mainly due to the
measurement of derivative financial instruments through other
comprehensive income, while effects from currency translation
as well as the remeasurement of pension plans, net of tax, led to
a decrease.
Securities and time deposits as well as cash and cash
equivalents increased by €2,132 million to €7,646 million
compared to 2022.
The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements-Effects of new or amended IFRS).
1
47,642 100.0
0.0
12
2,855 6.0
20,154 42.3
17,035 35.8
14,027 29.4
3,668 7.7
6,016 12.6
4,343 9.1
16,579 34.8
3,464 7.3
2,899 6.1
10,204
Total assets
Liabilities associated with assets held for sale
Other liabilities
Trade payables
Financial liabilities
Current liabilities
Other liabilities
Financial liabilities
Provisions for pensions and similar obligations
Non-current liabilities
Equity
Equity and liabilities
Securities and time deposits
Cash and cash equivalents
Assets held for sale
Total assets
21,668 43.0
15,211 30.2
4,315 8.6
6,537 13.0
4,360 8.6
13,567 26.9
3,880 7.7
3,490 6.9
6,192 12.3
5 0.0
50,447 100.0
20,040 39.7
21.4
3,592
In connection with the intention to sell three Russian
subsidiaries, assets of €6 million and liabilities of €5 million
were disclosed as held for sale pursuant to IFRS 5 in separate
lines of the consolidated statement of financial position as of
December 31, 2023.
At the end of the reporting period, the Porsche AG Group
reported total assets of €50,447 million, that is a 5.9% increase
compared to December 31, 2022. As of the reporting date, total
assets take into account the implementation of the new
regulations on the accounting treatment of insurance contracts
(IFRS 17), which led to a reduction in total assets. The prior-
year figures were adjusted where necessary.
NET ASSETS
202
↑ ↓ ↑ 0 |||
201
Combined Management Report Results of operations, financial position and net assets
-583
2,081
-2
-31
-1,089
-3,708
8,282
7,215
Automotive net liquidity
-2,843
-2,646
Third-party borrowings
9,861
Gross liquidity
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements-Effects of new or amended IFRS).
2 Offset against reversals of impairment losses.
6,415
3,723
Securities and time deposits
7.1
as well as loans
Intangible assets increased from €7,473 million to
€8,554 million. The increase was largely attributable to
capitalized development costs, with the largest additions
relating to the Cayenne, 911 and Macan series.
Property, plant and equipment increased by €471 million to
€9,394 million compared to 2022. The increase primarily
resulted for the most part from additions to furniture and
fixtures as well as advance payments made and assets under
construction, while plant and machinery as well as land and
buildings also increased. Leased assets increased by
€336 million to €4,190 million compared to 2022. This item
includes vehicles leased to customers under operating leases.
11,125
4,676
Equity-accounted investments, other equity investments, other financial assets,
other receivables and deferred tax assets
8.1
3,854
4,382
9.3
Financial services receivables
8.3
9.2
4,190
Leased assets
27,488 57.7
7,473 15.7
8,924 18.7
Property, plant and equipment
Intangible assets
Current assets
30,407 60.3
8,554 17.0
9,394 18.6
Assets
Equity-accounted investments, other equity investments, other
financial assets, other receivables and deferred tax assets
increased overall from €2,855 million in the prior year to
€3,592 million.
The increase in other financial assets of €178 million largely
related to the acquisition of shares in existing investments.
Other financial assets and other receivables changed by
€646 million to €1,500 million. The increase related to
receivables from loans and from marking derivative financial
instruments to market.
Non-current assets
Inventories increased from €5,504 million in the prior year to
€5,947 million at the end of the reporting period. The increase
is due to the market launch of the new Cayenne, while the other
model series are developing in line with the product life cycle as
part of normal business activities. In addition, there was an
increase in inventories of spare parts due to the steadily
growing vehicle fleet in the markets and as a result of the
general market environment and the associated rise in
procurement prices.
Current other financial assets and other receivables decreased
by €2,943 million to €4,537 million. The reduction mainly
related to the reversal of investments of surplus liquidity in the
form of loan receivables in the amount of €2,800 million as of
December 31, 2022 from Volkswagen AG and in the amount of
€798 million from VW International Belgium S.A. This was
offset in particular by marking derivative financial instruments
to market and trade receivables.
In total, non-current assets increased by €2,919 million to
€30,407 million. Non-current assets expressed as a percentage
of total assets amounted to 60.3% (2022: 57.7%).
Dec. 31, 2023
%
Dec. 31, 2022¹
€ million
Condensed statement of financial position of the Porsche AG Group as of December 31, 2023
Non-current and current financial services receivables increased
from €5,920 million to €6,345 million. These mainly include
receivables from finance leases as well as receivables from
customer and dealer financing. The number of financing and
leasing contracts increased in the past fiscal year.
N/EL
N/E
N/EL
2,743
2,743
38.4
38.4
N/EL
38.4
38.4
Y; N;
N/EL²
EL:
N/EL³
EL:
N/EL3
EL:
N/
EL:
N/EL³
EL:
N/EL3
CCM
N/EL
3.3 4,408
61.6
EL:
N/EL
Y/N
CCM
3.18
Y; N;
N/EL²
EL
Y; N;
N/EL²
Y; N;
N/EL²
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%1
CCM
3.3 2,743
38.4
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
N/EL
Y
N/EL
Y
E
Y
Y
Y
Y
Y
43.6
Y
Y
Y
Y
Y
Y
43.6
E
56.4
56.4
100.0
Y; N;
N/EL²
Combined Management Report Non-financial statement 2023
Y
Y
Y
Y
N/EL
N/EL
4,408
61.6
61.6
7,151 100.0 100.0
Total (A + B)
7,151
100.0
1
N/EL
All percentages relate to the total capital expenditure of the group.
Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental objective.
3 EL: taxonomy-eligible activity for the relevant objective; N/EL: taxonomy-non-eligible activity for the relevant objective.
Y
Y
Y
Y
Y
43.6
E
2
Y; N;
N/EL²
Y
€ (million)
Y
Y
E
Y
Y
Y
Y
Y
Y
10.1
Y
Y
Y
Y
225
10.1
E
87.5
87.5
97.5
Combined Management Report Non-financial statement 2023
Y
223
Y
10.1
All percentages relate to the total sales revenue of the group.
2
Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental objective.
3 EL: taxonomy-eligible activity for the relevant objective; N/EL: taxonomy-non-eligible activity for the relevant objective.
4 The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements - Effects of new or amended IFRS).
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%1,4
E
T
Y
Y
Y
Y
Y
E
↑↓ ↑ ||
224
Capital expenditure 2023
of CapEx,
Code
CapEx
2023
change change
mitigation adaptation
Circular
Bio-
change
Water
Pollution
economy diversity
mitigation
change
adaptation
Water
Pollution
Circular
Minimum (A.2.) CapEx,
economy Biodiversity safeguards
2022
Category
enabling
activity
Category
transitional
activity
Climate Climate
Proportion
or -eligible
Climate
Economic activities
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities
(taxonomy-aligned)
Manufacture of low-carbon technologies for
transport
Manufacture of automotive and mobility
components
CapEx of environmentally sustainable
activities (taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2. Taxonomy-eligible but not
%¹
environmentally sustainable activities
Manufacture of low-carbon technologies for
transport
CapEx of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomy-aligned activities) (A.2)
CapEx of taxonomy-eligible activities
(A.1 + A.2)
B. Taxonomy-non-eligible activities
CapEx of taxonomy-non-eligible
activities (B)
Substantial contribution criteria
DNSH criteria ("Does Not Significantly Harm")
Proportion of
taxonomy-
aligned (A.1.)
Climate
(not taxonomy-aligned activities) (A.2)
↑↓ ↑ ||
N/EL
Operating expenditure 2023
45.9
E
Y
Y
Y
Y
Y
(offsets) through climate change mitigation projects are included in the
Porsche AG Group's decarbonization strategy. Therefore, in order to achieve net
carbon neutrality, the remaining emissions along the value chain of the newly
produced vehicles should be offset. Emissions of vehicles produced prior to
achieving net carbon neutrality along the value chain of the vehicles are not
taken into account for the calculation of the carbon balance. Realizing the
Porsche AG Group's ambition depends upon various factors, for example,
technological progress that has not yet been fully developed, and also on
regulatory or economic developments that are outside the Porsche AG Group's
control and may therefore not be realizable.
3 This target covers Scope 1, Scope 2 and Scope 3 emissions as defined by the
Greenhouse Gas Protocol. Net carbon neutrality along the value chain of the
newly produced vehicles describes the Porsche AG Group's ambition to avoid
and reduce CO2 emissions, especially during production (Scope 1 and Scope 2
emissions), in the supply chain and use phase of the vehicles delivered
(upstream and downstream Scope 3 emissions), but also in other Scope 3
categories, such as professional travel. Avoided emissions and removals
2 Life cycle includes the CO₂ emissions of a vehicle in the supply chain, Porsche's
production, use phase of 200,000 km and recycling.
1 For the Porsche AG Group, more ecological materials are reduced-carbon
primary materials or circular materials. Reduced-carbon primary materials are
characterized by the fact that they cause less CO2 per kilogram of primary
material than the average materials of the same type used in the EU. Porsche
AG Group uses the term circular to describe materials that are partly produced
from pre- and post-consumer scrap or from renewable raw materials.
In-house
Supply chain
Any
During the product development process, the targets are broken
down to vehicle and system level and requirements are defined
at component level and included as binding specifications for
direct suppliers. The achievement of targets is then monitored
by the Executive Board Product Committee, among others, and
finally subjected to an external audit.
In preliminary processes and committees, the Porsche AG Group
evaluates its product strategy and develops recommendations
based on input from the relevant internal specialist
departments. The Executive Board holds regular strategy
workshops and planning rounds for this purpose.
Decarbonization targets are included in the product strategy
and product development process. These are initially set by the
sustainability organization bodies and then verified when setting
targets for the vehicle projects and signed off on by the
responsible committee of the Executive Board.
In cooperation with the Volkswagen Group, the Porsche AG
Group revises the composition, valuation methods, and
methodology of the DCI on a regular basis, for example, due to
changes in internal or external requirements, such as vehicle
test cycles. DCI values previously published can therefore also
be adapted to new premises - considering the requirements of
the GHG Protocol for the recalculation of corporate emissions -
for the purpose of obtaining a methodologically consistent time
series.
at company level and for the relevant company departments,
which are signed off by the Steering Group and then the
Executive Board.
Decarbonization Index
It tracks their progress and offers a forum for discussion about
the content. The working group also prepares decisions for the
Environment and Sustainability Steering Committee. The
Steering Committee meets regularly and reports on the DCI to
the chain of bodies responsible from the Environment and
Sustainability Steering Group right through to the Executive
Board. The Steering Committee decides on target suggestions
The Decarbonization working group processes all the
Porsche AG Group's cross-departmental activities relevant to
the DCI. It is also largely in charge of coordinating the
implementation of the strategic program. The working group
compiles content suggestions for DCI targets, reduction
measures and corresponding roadmaps.
Y
The DCI covers the main parts of the Porsche AG Group.¹
Among other factors, the DCI is based on life cycle assessments
performed in accordance with ISO 14040/44. Individual
assumptions and values as well as data from life cycle inventory
databases are used for these.2 As a strategic indicator with a
transparent and comprehensive calculation, the DCI is intended
to support the Porsche AG Group in reducing its carbon
footprint.
Y
Y
environmentally sustainable activities
(not taxonomy-aligned activities) (A.2)
OpEx of taxonomy-eligible activities
(A.1 + A.2)
557
50.1
50.1
1,112 100.0
100.0
B. Taxonomy-non-eligible activities
OpEx of taxonomy-non-eligible
activities (B)
Total (A + B)
1,112
100.0
1
All percentages relate to the total operating expenditure of the group.
2 Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental objective.
3 EL: taxonomy-eligible activity for the relevant objective; N/EL: taxonomy-non-eligible activity for the relevant objective.
Y
Y
The Porsche AG Group measures the success of its
decarbonization program with the decarbonization index (DCI).
This presents the model-based average emissions per newly
produced vehicle along the entire value chain - from
production and use to end of life as comprehensively as
possible in CO₂ equivalents (tCO2e/vehicle).
DUE DILIGENCE PROCESS
This means that the existing vehicle fleet could also potentially
contribute to the decarbonization of the transport sector.
Together with partners from science and industry, Porsche AG is
working on developing these alternative fuels on an industrial
scale.
Y
Y
Y
Y
E
Y
a digital learning module also aims to give employees from other
company departments the opportunity to learn about the
concept and control opportunities of the
S-rating.
Complaints process
Porsche AG operates a multistage complaints management
system that provides internal and external complainants with a
confidential communication channel for reporting potential
breaches of human rights and violations of environmental
duties. Porsche AG publishes the freely available reporting
channels on its website www.newsroom.porsche.de.
Porsche AG uses a standardized process to deal with every
complaint that relates to its own business field and the supply
chain of Porsche AG.
Dialog activities
Porsche AG is an active participant in the automotive industry
dialog on the German Federal Government's National Action
Plan for Business and Human Rights (NAP). The aim is to
establish humane labor conditions in internal business
departments and in the supply chain. In addition, Porsche AG
has added human rights aspects to its training and
communication measures, e.g., with background information,
warning signs and recommended actions if there are indications
of human rights violations. Porsche AG also enters strategic
sustainability dialog with selected direct suppliers to
continuously exchange information on relevant topics. The
participants reflect together on opportunities and challenges
and determine approaches for sustainable actions.
Responsible procurement of raw materials
As Porsche AG's product portfolio becomes increasingly more
electrified, the company must purchase significantly more raw
materials, the extraction of which must be more strictly
monitored in accordance with human and environmental rights
in complex global supply chains. Porsche AG is therefore
continuously refining its approaches and objective to be able to
procure raw materials in a responsible way. In the reporting year,
Porsche AG conducted several projects together with the
Volkswagen Group in which selected raw materials were
analyzed in turn and thus increased transparency in the raw
materials supply chains.
In addition to close cooperation with direct and indirect
suppliers, Porsche AG is also involved in various initiatives that
promote transparency and better working conditions during the
extraction of raw materials:
- The Volkswagen Group has a material-specific specification
for the mica pigment, which is mandatory for all contracts
newly awarded to suppliers of paint and mica sheets
(battery). This requires that the origin of the raw materials,
including the identity of the processor, are disclosed. It also
calls for a mandatory audit in line with the Global Workplace
Standard for Mica Processors for all processors in the supply
chain. Porsche AG is a member of the Responsible Mica
Initiative which aims to promote safety and fair labor
conditions and wages at the processing companies.
- At the Volkswagen Group, there are also material-specific
specifications for leather, which is mandatory for all
contracts newly awarded to direct leather suppliers. This
requires disclosure of the country of origin and a
sustainability certificate which is specific to leather. Since
the reporting year, Porsche AG has also been active in the
Leather Working Group (LWG), a global multi-stakeholder
community committed to responsible leather. The non-profit
organization drives best practices and positive social and
environmental change for responsible leather production.
Porsche AG and Michelin entered a partnership back in 2020
with the aim of promoting the sustainable farming of natural
rubber. Porsche AG and Michelin are jointly involved in the
CASCADE (Committed Actions for Smallholders Capacity
Development) project, which aims to create more
transparency and better working conditions for small
plantation farmers in the extraction of raw materials.
- Through the Volkswagen Group, Porsche AG is also a
member of the Global Platform for Sustainable Natural
Rubber (GPSNR), which has set itself the goal of improving
the social and environmental impact of natural rubber
production.
Via the Volkswagen Group, Porsche AG is also a member of
the World Economic Forum's Global Battery Alliance.
Featuring public and private partners, this alliance strives to
promote social and ecological sustainability along the value
chain of battery raw materials. The Volkswagen Group also
has a material-specific specification for the battery raw
materials cobalt, lithium, nickel and graphite which is
mandatory for all new contracts for high-voltage battery
cells. It requires mandatory disclosure of the origin of the raw
materials for all four battery raw materials.
Porsche AG is also represented in the Initiative for
Responsible Mining Assurance (IRMA) via the Volkswagen
Group. This promotes an independent assessment of
sustainability from mining companies. With these measures,
Porsche AG wants to improve the human rights situation in
its raw material supply chains.
Combined Management Report Non-financial statement 2023
239
Y
45.9
Y
Y
In addition to the transformation to electromobility for new
vehicles, the Porsche AG Group is also pursuing the goal of
demonstrating how the fossil CO2 emissions of existing vehicles
with combustion engines can be reduced by using renewable
energy sources. Here, the Porsche AG Group is investigating
synthetic, liquid fuels referred to collectively as eFuels. These
fuels, produced based on electricity from renewable energy,
could replace fossil fuels and thus potentially enable a virtually
carbon-neutral operation of vehicles with combustion engines.
The Porsche AG Group aims to achieve net carbon neutrality³
along the value chain (production, use, and end of life) of newly
produced vehicles in 2030. To achieve this, the Porsche AG
Group aims to systematically electrify its vehicle portfolio as a
key lever for reducing greenhouse gas emissions. In 2030, the
Porsche AG Group aims to deliver more than 80% of its new
vehicles with purely battery-electric drives - depending on
customer demand and the development of new mobility
concepts, including electromobility in individual regions of the
world. The Porsche AG Group aims to reduce greenhouse gas
emissions in the use phase (Scope 3 emissions) of Porsche
vehicles in 2030 by 70% compared to 2022.
The Porsche AG Group intends to have its targets validated
within two years by the "Science Based Targets initiative"
(SBTI), which is currently revising its scenarios. In October
2023, the SBTI published a draft version of the sectoral
roadmap for the automotive industry, which is currently under
consultation. The Porsche AG Group expects that the final
reduction targets will be in line with the 1.5-degree target.
The Porsche AG Group intends to lower its average greenhouse
gas emissions along the value chain and over the vehicles' entire
life cycles.² The Porsche AG Group has developed its reduction
pathway based on existing 1.5-degree climate scenarios and
formulated specific targets at the vehicle level and
requirements at the component level.
TARGETS
For this reason, the Porsche AG Group structures its processes
and products to build a net carbon-neutral future in which
resources are used as responsibly as possible. The focus here is
on vehicle decarbonization, the development of alternative drive
systems, reducing consumption of primary resources and
making increasing use of more ecological materials in vehicles
and in their upstream supply chains.
The Porsche AG Group is aware of its responsibility for climate
change mitigation and committed to the targets agreed in the
Paris Agreement in 2015. These include keeping the global
average temperature increase below 2°C above pre-industrial
levels and pursuing efforts to limit it even further to 1.5°C.
Climate change mitigation
ENVIRONMENT
228
OpEx of taxonomy-eligible but not
↑↓ ↑ ||
Combined Management Report Non-financial statement 2023
100.0
54.1
54.1
E
45.9
Y
Y
Y
Y
227
N/EL
N/EL
N/EL
or -eligible
(A.2.) OpEx,
2022
Category
enabling
activity
Category
transitional
activity
€ (million)
%¹
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Minimum
safeguards
Circular
economy Biodiversity
Pollution
Water
Economic activities
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities
(taxonomy-aligned)
Substantial contribution criteria
DNSH criteria ("Does Not Significantly Harm")
Proportion of
taxonomy-
aligned (A.1.)
Proportion
Climate Climate
Climate
Y/N
of OpEx,
OpEx
2023
change change
mitigation adaptation
Circular
Bio-
Water
Pollution
economy diversity
change
mitigation
Climate
change
adaptation
Code
226
%¹
CCM
49.9
555
49.9
49.9
environmentally sustainable activities
(not taxonomy-aligned activities)
EL:
N/EL3
EL;
N/EL
EL;
N/EL
EL:
N/EL3
EL:
N/EL
EL;
N/EL
Manufacture of low-carbon technologies for
CCM
transport
3.3
557
50.1
EL
N/EL
N/EL
49.9
555
A.2. Taxonomy-eligible but not
Of which transitional
3.3
555
49.9
Y
N/EL
N/EL
1
N/EL
N/EL
Manufacture of automotive and mobility
Manufacture of low-carbon technologies for
transport
CCM
3.18
Y
N/EL
N/EL
N/EL
N/EL
N/EL
OpEx of environmentally sustainable
activities (taxonomy-aligned) (A.1)
Of which enabling
components
100.0
N/EL
Total (A + B)
Reconditioning
Recovery of raw
materials (using
mechanical and
chemical processes)
1 The Sustainability Report was not subject to an independent audit by an
external public auditor.
Combined Management Report Non-financial statement 2023
235
↑↓ ↑ 0 |||
236
↑↓ ↑ |||
SOCIAL
Sustainability, work-related rights and equal
treatment and opportunities in the value chain
The significance of the supply chain is growing constantly in the
context of sustainability management. More and more new
vehicle components and technologies are being added to
procurement volumes, and the number of suppliers is rising. At
the same time, as vehicles are increasingly electrified, the level
of demand for certain raw materials - especially to produce
high-voltage batteries - is also growing. Overall, the
importance of responsible, environmentally friendly raw material
procurement methods that respect human rights is growing as
a result.
Porsche AG's entire supply chain encompasses more than
1,700 direct suppliers of production materials and more than
5,700 direct suppliers of non-production materials.
Responsibility for supply chain management and sustainability
in the supply chain lies with the Member of the Executive Board
responsible for Procurement at Porsche AG.
TARGETS
Porsche AG wants to ensure that its direct suppliers practice
ecologically sustainable procurement, adhere to human rights
standards, implement social employment practices, and achieve
responsible resource management.
Specifically, by 2030, Porsche AG aims to comply with the
strictest internal quality standards relating to sustainability with
90% of the production material it purchases from direct
suppliers with a sustainability rating (S-rating). This means that
direct suppliers of production materials are expected to achieve
a positive S-rating in the highest category (A) by this point in
time. The S-rating covers environmental and social aspects,
including respect for human rights. It also rates compliance with
ethical conduct.
Safeguarding work-related rights in the supply chain
In 2022, Porsche AG issued a declaration of its intent to observe
and promote human rights. This is Porsche AG's commitment to
respecting human rights worldwide and promoting good
working conditions and fair trade. This declaration contains
Porsche AG's human rights strategy. The Porsche AG Group
rejects child labor, forced and compulsory labor as well as any
form of modern slavery and human trafficking.
The Porsche AG Group attributes great importance to diversity
and equal opportunity. Besides equal opportunities between the
genders, the focus is on the diversity of the international
workforce. The Porsche AG Group values openness towards
people of different origins and sexual orientations, and
encourages harmonious, productive cooperation between
generations, regardless of whether people have a disability.
→ Equal treatment and opportunities within the own workforce
high-voltage batteries
Accordingly, the Porsche AG Group also expects its direct
suppliers to refrain from any form of discrimination,
intimidation, harassment or unjustified disadvantageous
treatment of employees in the working environment. Unequal
treatment because of ethnic or social origin, skin color, gender,
nationality, language, religion, physical or mental limitations,
gender identity, sexual orientation, state of health, age, marital
status, pregnancy/parenthood or trade union membership is
prohibited. This same applies to political convictions, if they are
based on democratic principles and tolerance towards those
with different opinions, provided they do not conflict with the
requirements of the job. Unequal treatment also includes the
payment of unequal remuneration for work of equal value.
to manufacture
Use of recycled
materials
of the Porsche AG Group
Transport
Collection
Logistics
Taycan (2019)
Storage
MEASURES
As a strategy field, circular economy plays a particularly
important role in product development. Porsche AG and
selected subsidiaries promote the use of ecologically
sustainable materials in their vehicles by communicating clearly
defined criteria and requirements to the supply chain. In the
reporting year, projects to use more ecologically sustainable raw
materials and recycled materials were carried out for several
specific vehicle components.
The Porsche AG Group is also working together with the
Volkswagen Group and other development partners to optimize
the recycling process for high-voltage batteries, which contain
large amounts of valuable raw materials that can be conditioned
and reused. Together with specialized partner companies,
Porsche AG is also evaluating options for the time after the
actual use phase of high-voltage batteries: second-life
concepts.
→ Climate change mitigation, → Pollution and substances of concern, → Water and
marine resources, → Waste¹
RESULTS
In the reporting year, Porsche AG continued with a pilot
recycling project for high-voltage batteries and launched three
others. Together with the Volkswagen Group and other partners,
insights were obtained into product design and recycling
processes, for example. In addition, the logistics and recycling
processes for traction batteries were optimized in individual
Porsche markets by dismantling the high-voltage batteries
directly on site and then transporting the discharged modules to
regional recycling partners.
In the reporting year, Porsche AG conducted a feasibility study
on the combined use of photovoltaic systems, charging
infrastructure for electric vehicles and used high-voltage
batteries. The use of high-voltage batteries as second-life
battery storage was tested in selected Porsche AG parking
garages at Stuttgart-Zuffenhausen.
To ensure and increase the longevity of Porsche sports cars, it
reissued replacement parts and accessories for repairing
Porsche Classic vehicles. This can improve the function and
everyday usability of older vehicles. It also promotes the long-
term use of the materials used in the vehicle. To ensure that
Porsche Classic vehicles can be maintained over the long term,
technicians and service advisors in the dealer organization have
been specially trained in classic vehicles and their repair and
maintenance.
In addition, more and more aspects of the circular economy are
gradually being considered at vehicle production sites. For
example, for the Taycan and Cayenne models, the material used
to protect door panels and hoods during transport has been
replaced with a mono-material that is more than 99%
recyclable.
A project was carried out at Porsche AG and selected
subsidiaries to categorize disposable packaging materials used
for vehicle components and classify them according to
sustainability criteria. Based on this, a guideline on single-use
materials in parts protection was drawn up together with other
Volkswagen Group brands and communicated to direct
suppliers of components. In addition, materials that cannot be
recycled were defined and internal Porsche AG targets were set
to further reduce the use of these materials.
Taycan (2024)
Disassembly and
classification
Review
Assessment
Separation
Recycling
Finishing and use
of recycled materials
Porsche AG encourages its direct business partners to develop
and promote an inclusive culture. Diversity should be promoted
among all employees and at all hierarchical levels - in
particular, but not exclusively, cultural, ethnic and religious
diversity.
Decarbonization in the supply chain
The Porsche AG Group has set itself an ambitious target: to be
net carbon neutral along the entire value chain of its newly
produced vehicles in 2030. The supply chains are currently
responsible for around 20% of the greenhouse gas emissions
that are relevant to the Decarbonization Index (DCI), for example
in the extraction of raw materials and the production of vehicle
components.
The Code of Conduct (CoC) for Business Partners requires and
checks that all direct suppliers implement environmental and
social standards. This forms the basis for legally binding
contractual agreements. It is founded on the International
Chamber of Commerce's Charter for Sustainable Development,
the OECD Guidelines for Multinational Enterprises, the UN
Guiding Principles for Business and Human Rights and the
relevant core labor standards of the International Labour
Organisation (ILO).
In accordance with the CoC for Business Partners, the
Porsche AG Group also expects all direct suppliers of production
materials to follow the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas. In the reporting year, the Porsche AG
Group's CoC for Business Partners was updated based on the
new LKSG, among others.
The sustainability requirements from the CoC are firmly
enshrined in the supplier contracts. If these are not complied
with, Porsche AG will take the contractually agreed steps up to
and including termination of the business relationship.
Furthermore, business partners are obliged to pass on the
sustainability requirements of the CoC to their own suppliers in
the upstream supply chain and to set up appropriate control
measures to monitor them.
In addition to environmental requirements, e.g., the use of
electricity from renewable energies or recycled materials, the
CoC for Business Partners includes minimum standards for
remuneration, occupational health and safety and fire protection
requirements. Suppliers are required to ensure that working
hours comply with the applicable national legal requirements
and/or the national requirements applicable in the respective
economic sector and that the working conditions meet
applicable minimum standards - also in terms of hygiene.
To prevent integrity risks and negative social or environmental
impacts along the supply chain, direct suppliers are informed
about the content of Porsche AG's CoC for Business Partners as
part of education measures, for instance, e-learnings, and made
aware of current challenges in the supply chain. Central training
and awareness-raising measures are also offered in different
languages. The Volkswagen Group offers CoC training courses
to all direct suppliers.
Examination of the sustainability requirements
One of the foundations of Porsche AG's examination of the
sustainability requirements at direct suppliers is the abstract
risk analysis created based on a risk matrix. Within this risk
matrix, the procurement volumes are categorized into risk
groups (high, medium and low) according to the abstract human
rights and environmental sector risks and using appropriateness
criteria. They are then made more specific by including the
country's risks. Based on the abstract risk analysis, appropriate
measures are rolled out for the respective supplier risk groups.
Within the ReSC system, a distinction is made between
Standard measures and Deep Dive measures.
In addition, Porsche AG relies on new technologies such as
artificial intelligence (AI) to further increase transparency in the
supply chain and recognize potential risks, for example, in raw
material supply chains. The permanent screening of freely
available internet sources including social media provides timely
indications of possible breaches. The scope was expanded in
the reporting year. → Information-related impacts for consumers and/or end
users
To check compliance with the sustainability criteria, all
employees involved with procurement at Porsche AG are
mandated to take part in training on the S-rating. Furthermore,
220
EU Taxonomy: capital expenditure
Economic activities
Compliance
Compliance
with
Substantial contribution to
Capital expenditure
climate change mitigation
with DNSH minimum
criteria safeguards
Taxonomy-aligned
capital expenditure
Sustainability requirements for direct suppliers
MEASURES
The LKSG also places a particular focus on external service
providers that provide security services on behalf of the
Porsche AG Group. To reduce risks in this context, security staff
are instructed regularly and before their first assignment, at
least once a year. The training conveys that the prohibition of
torture and cruel, inhuman or degrading treatment must not be
disregarded, that life and limb must not be harmed, and that
freedom of association and trade union rights must not be
restricted. Any suspected cases or violations despite the
measures taken can be reported to humanrights@porsche.de.
To respond appropriately to particularly serious human rights
and environmental risks, the human rights focus system (HRFS)
is implemented together with the Volkswagen Group into the
supply chain.
Of all the parts, high-voltage battery cells are a key factor for
greenhouse gas emissions in the supply chain for electric
vehicles. Therefore, to reduce these emissions, measures have
been defined which direct suppliers have had to implement as
requirements for all-electric series production car projects since
2022. In this context, the process of awarding contracts
encompasses specific requirements relating to the use of green
electricity, CO₂-optimized primary materials, and recycled
materials. → Climate change mitigation
DUE DILIGENCE PROCESS
The S-rating is based on self-disclosures by direct suppliers
on defined sustainability criteria. If the results of the self-
disclosure are not satisfactory because the sustainability
standards needed for the S-rating are not met at the direct
suppliers or the required evidence is not provided, an on-site
inspection may be carried out by an independent sustainability
auditor. If any concerns are raised, the direct supplier is given a
negative rating. If target achievement falls below a defined
threshold, Porsche AG initiates a corrective action plan in
collaboration with the supplier concerned. The direct supplier
must remedy the identified concerns without delay, which the
independent sustainability auditor then verifies directly. As a
matter of principle, the suppliers concerned are not considered
for contracts by Porsche AG until they meet the sustainability
requirements.
Sustainability rating
Environment and social
Self-assessment questionnaire
Country risk
On-site check
Sustainability rating
Measures
Recycling process for high-voltage batteries
A: Eligible for the award of contracts
B: Award of contracts with conditions
C: Not eligible for the award of contracts
Direct suppliers that deliver products to Porsche AG must
provide Porsche AG with information on total energy
consumption in MWh and CO2 emissions in metric tons (Scope
1, 2 and 3) at product level upon request.
The minimum standards for the S-rating of direct suppliers also
include respect for human rights at the individual stages of the
value chain.
To implement the requirements of Germany's Supply Chain Due
Diligence Act (LKSG), which has applied in Germany since
January 1, 2023, Porsche AG already published the Group
Business and Human Rights Guidelines in 2022. These group
guidelines establish an overarching framework for controlling
the duties of care relating to human rights and the environment
under the LKSG. In addition, the manual sustainability
management in supplier relationships and the Code of Conduct
for Business Partners were updated in the reporting year.
In the reporting year, Porsche AG's Executive Board appointed
the Business and Human Rights Council (BHR Council) to
monitor the duty of care in terms of human rights and
environmental matters. This Council is made up of members
from multiple disciplines, is directly linked to the Executive
Board and supported by its own office. It met seven times in the
reporting year.
The majority of the BHR Council's meetings are about events
relating to human rights or the environment from the risk
assessment, results from following up on complaints received
as well as information about the effectiveness of LKSG
measures.
Established procedures and processes of the Porsche AG
Group's responsible supply chain system (ReSC system), which
are defined in the handbook on sustainability management in
supplier relationships, are used to achieve the overarching
sustainability targets. If there is suspicion that a direct supplier
does not comply with sustainability requirements during an
ongoing business relationship, the supply chain grievance
mechanism (SCGM) comes into play. This processes potential
indications of violations of Porsche AG's sustainability
requirements.
Combined Management Report Non-financial statement 2023
237
238
↑ ↓ ↑ 0 |||
The environmental criteria of the S-rating for direct suppliers of
production materials were adjusted in 2022: If a direct supplier
employs more than 100 staff at its production sites, Porsche AG
expects it to have an environmental management system
ISO 14001 or the European Union's EMAS Regulation.
€ million
↑↓ ↑ |||
Combined Management Report Non-financial statement 2023
organization structure consisting of eleven sub-projects for
topics relating to eFuels. The Procurement Central Functions,
Strategy, Digitalization, Risk Prevention and Original Parts
department has overall responsibility for the project and is
supported by the Politics and Society department in
communications. Approximately every two months, they report
to subject-specific steering groups, to which members of the
Executive Board also belong. In addition, eFuels are a core
component of the meetings of the "Beyond Core" strategy area
from the Porsche Strategy 2030, which take place four times a
year.
The Executive Board's remuneration has also been tied to the
DCI targets since fiscal year 2023.1 The Executive Board
resolved the same for the management of Porsche AG and
selected national subsidiaries.
MEASURES
To continuously reduce greenhouse gas emissions over the
entire life cycle of Porsche vehicles, two main levers are
currently available: the electrification of the vehicle portfolio and
the systematic implementation of measures along the entire life
cycle of the vehicles - from the supply chain and production
through to the downstream use phase.
Electrification of the vehicle portfolio
The Porsche AG Group is systematically expanding its range of
battery-electric vehicles. The portfolio of the Panamera and
Cayenne model series has been successively expanded to
include plug-in hybrid electric vehicles (PHEV). These will
continue to be designed with high performance in mind and
greater electric ranges. As part of its electrification strategy, the
Porsche AG Group has offered the all-electric Taycan since
2019. In addition, the Porsche AG Group is launching the next
generation of the Macan in 2024 as a purely battery-powered
electric vehicle (BEV). It plans to offer the 718 Boxster and
Cayman models as BEVS by mid-decade. The all-electric
Cayenne is expected to be launched shortly afterwards.
In the medium term, there are also plans to expand the product
portfolio with a new, all-electric model in the SUV segment
above the Cayenne. Going forward, sporty hybridization will be
possible for the Porsche 911.
Decarbonization in the supply chain
Porsche AG is also working on the supply chain of its vehicles
and contributing to the decarbonization target - a net carbon
neutral value chain of the newly produced vehicles in 2030. For
example, all direct suppliers of production materials for vehicles
are required to switch their production to certified electricity
from renewable energies. This has applied to all new production
material contracts of all-electric series vehicle projects awarded
since July 2021. Virtually all direct suppliers of production
materials have agreed to meet this requirement.
In the reporting year, the Executive Board of Porsche AG set
decarbonization targets for new vehicle and platform projects.
In addition, specific decisions were made for relevant vehicle
projects under development on how to further reduce the
carbon footprint in the supply chain.
Together with AUDI AG, Porsche AG is developing the Premium
Platform Electric (PPE), a modular platform for electric cars for
the period beyond the reporting period. The aim is to use this for
the all-electric Macan and one other model series in the short to
medium term. Another platform is the Scalable Systems
Platform (SSP), which Porsche AG is developing with AUDI AG
and other companies in the Volkswagen Group. The high-
performance version (SSP Sport) in particular aims to support
Porsche's all-electric vehicles. Using this long-term strategy of
aligning vehicle development on a small number of platforms
allows for synergies in development and production, which can
also make a potential contribution to climate protection. One
example is a jointly developed high-voltage battery in the SSP,
which can be used to implement lower-carbon materials and
more carbon-efficient processes for several vehicles.
In the reporting year, Porsche AG entered further partnerships
with manufacturers of raw materials to improve the carbon
footprint of Porsche vehicles. Porsche AG and a Norwegian
aluminum producer have agreed to work together on low-
carbon aluminum.
In addition, they also intend to develop a plan for a more
ecologically sustainable value chain for battery materials and
their recycling. The focus here is on how to design efficient
closed cycles for the high-voltage batteries of Porsche electric
vehicles. Another cooperation is the supply of low-carbon steel
by a Swedish start-up from the steel industry. The partner
company uses an innovative production process with hydrogen
and electricity from renewable energies.
Decarbonization in production
For its own vehicle production, the Porsche AG Group is
pursuing the vision of a zero-impact factory by 2030; in other
words, a factory that has as little negative impact on the
environment as possible. The reduction of the CO2 emissions at
the vehicle production sites in Stuttgart-Zuffenhausen and
Leipzig also lowers the DCI. The two production sites in
Stuttgart-Zuffenhausen and Leipzig as well as the development
site in Weissach were net carbon neutral in the reporting year.
Decarbonization of the use phase
Although no local CO2 emissions are incurred during the
operation of electric vehicles, the carbon footprint of the use
phase depends on the intensity of the CO2 emissions from the
electricity generation. The use of renewable energies is
therefore a major lever for reducing CO₂ emissions during the
use phase. As new battery-electric vehicles increase the
demand for electricity in the markets, Porsche AG is committed
to the expansion of renewable energies. Porsche AG intends to
enter long-term indirect commitments with operators of wind
and solar plants to promote the expansion of renewable
energies. These plants are to provide new capacities to generate
enough electricity from renewable energies to match the
vehicles' imputed energy requirements. This approach has been
used since 2021 for the newly produced fleet of the Taycan
Sport Turismo and Taycan Cross Turismo models in the
respective fiscal year. In the reporting year, the approach was
extended to all Taycan models. Additional models will follow in
the coming years.
The Porsche AG Group is also continuing to expand its charging
infrastructure. Over 1,000 high-performance charging points
have been put into operation for customers at more than 600
dealer locations to date. These are tailored to the Porsche
Taycan and future Porsche vehicles with their 800-volt
charging architecture. The Porsche AG Group is also planning to
set up its own fast-charging stations along main traffic routes.
In addition to this, the Porsche AG Group is involved in the
further expansion of the public fast-charging infrastructure,
which also includes IONITY's network of currently more than
500 fast-charging parks in Europe. The Porsche AG Group
already participated in an additional financing round for the joint
venture in 2021. In addition, Porsche Destination Charging is
helping the Porsche AG Group expand the existing
infrastructure for AC charging. There are more than 5,000
charging points in 86 countries and there should be more than
7,500 by the end of 2025. The Porsche Charging Service also
enables access to charging points from various providers. More
than 560,000 charging points in over 20 European countries
are currently connected.
In addition to the transformation to all-electric vehicles and the
decarbonization of the use phase through electricity from
renewable energies, Porsche AG is also committed to solutions
to reduce CO2 emissions from combustion engines. Alongside
efficiency-enhancing technologies, the Porsche AG Group is
working on further developing alternative fuels (especially
eFuels) on an industrial scale.
Together with HIF (Highly Innovative Fuels), Siemens Energy
and several other international companies, the Porsche AG
Group built an industrial eFuels production plant in Punta
Arenas, Chile, in 2022. The Porsche AG Group not only funded
most of the pilot plant, but also closely accompanied the project
progress and will use the fuel produced there in the future.
Punta Arenas has particularly favorable conditions compared to
the rest of the world: There is a constant strong wind, which
ensures low costs for renewable electricity generation by wind
turbines and thus to produce eFuels. The pilot plant is designed
for a maximum production volume of around 130,000 liters of
eFuels per year; the aim is to expand the capacity in Chile to
around 600 million liters per year by the end of the decade.
Together with Volkswagen Group Innovation, the eFuels
company HIF Global and MAN Energy Solutions, the Porsche AG
Group is looking into integrating a direct air capture (DAC)
facility into the eFuels pilot plant in Chile.
The Porsche AG Group has set up an internal project
Until now, the CO2 used there has been taken from a biogenic
source. The DAC process uses wind energy to filter the CO2
required for production from the atmosphere in an
environmentally friendly way.
↑↓ ↑ 0 |||
Combined Management Report Non-financial statement 2023
4 Based on the GHG Protocol, the decarbonization index (DCI) models significant
emissions as comprehensively as possible in greenhouse gas equivalents
(CO₂e), such as CO2, CH4, N2O, HFCS, PFCs and SF6. The DCI's targets and
reporting relate to the current status of the methods and are stated in CO₂e. For
the sake of legibility, CO2 is used in this report.
Raw materials
Supplier
Material extraction Energy consumption
and processing
for supply chain
further processing
Production
Energy consumption
for vehicle manu-
facture
Usephase
Upstream
chain
Upstream chains
for fuel extraction
and refining, CO₂
emissions caused by
power generation
For the purpose of recording CO₂ emissions in the DCI, the main parts of the
Porsche AG Group are above all Porsche AG and Porsche Leipzig GmbH.
Outside the Porsche AG Group, the CO2 emissions from the supply chain and
use phase are particularly relevant for the DCI.
Driving
emissions
CO₂ emissions
from fuel com-
bustion during the
vehicle's usephase
End of life
Other
Recycling
Energy consumption
for vehicle recycling
Employee mobility,
waste, logistics, etc.
2 In this index, the CO2 emissions in the use phase are calculated over 200,000
km per vehicle with reference to average consumption figures of the primary
market regions (EU+3 (Iceland, Norway, the United Kingdom of Great Britain
and Northern Ireland), China, the USA). The consumption figures are calculated
in accordance with the respective statutory review cycle. The intensity of the
CO₂ emissions from the electricity used to charge electric vehicles is also
calculated on the basis of energy mixes of the primary market regions. Supply
chains and recycling emissions stem from the vehicle life cycle assessments.
Vehicle maintenance is not included in the calculation.
229
With this commitment, the Porsche AG Group is seeking to
contribute to the worldwide development of world-class sites:
these are sites where competitive eFuels can be manufactured
under optimal conditions. This includes ensuring that renewable
energies can be used without competing with other industries.
1 To calculate target achievement, the DCI, including the scope of voluntary CO₂
compensation measures through climate change mitigation projects, is
included in the ESG factor in the variable remuneration with the annual bonus
(short-term incentive] in the remuneration of the Executive Board and
management.
230 For details concerning fuel consumption, electricity consumption, and CO2 emissions, see pages 464–468.
62.7
63.9
63.8
CO2 emissions from the use phase were reduced by 3.1% in the
reporting year compared to the prior year. A decisive factor here
was Porsche AG's commitment to the expansion of new wind
and solar power plants in combination with the higher
proportion of purely battery-powered vehicles. In the reporting
year, the newly contracted capacities corresponded to the
energy requirements of the newly produced Taycan fleet.
The first Porsche Charging Lounge in Germany was opened in
the reporting year.
The pilot plant in Punta Arenas, Chile, commenced operations in
the reporting year. The first batches of eFuels were produced
and used in initial applications at vehicle events.
In addition to its involvement with HIF, Porsche AG participates
in various research projects and initiatives such as DeCarTrans
and Refinery4Future. The funding project "reFuels-Rethinking
Fuels" under the umbrella of the Baden-Württemberg
Strategiedialog Automobilwirtschaft was completed in the
reporting year.
Circular economy
TARGETS
Porsche AG is increasingly aligning its processes, products and
use of raw materials towards a resource-saving and net carbon
neutral future. The concept of a circular economy is a key
component of Porsche AG's sustainability strategy. Defined
fields of action address topics such as the battery raw material
cycle and the use of circular materials in vehicles, or circular
economy concepts for Porsche sites.
Through its work in the strategy field of a circular economy,
Porsche AG and selected subsidiaries are striving to handle raw
materials in a responsible and resource-saving way and to use
vehicles and the materials used in them for a long time.
Among other things, it is pursuing the goal of a closed battery
raw material cycle. Batteries and their battery cell modules
should be used in the vehicle for as long as possible. It should
also be possible to reuse their raw materials in new batteries
after going through modern recycling processes or to use the
battery cell modules in energy storage systems. The aim is also
to reduce the share of primary raw materials in other areas of
the vehicle wherever technically possible and to use more
ecologically sustainable materials. The longevity of Porsche
vehicles and the associated long service life of the materials
used also contribute to the formulated target image. This is to
be further strengthened by the extended availability of spare
parts and the reconditioning of selected components.
Aspects of the circular economy will also be increasingly
integrated into the development of Porsche vehicles. For
example, there are pre-development projects for various vehicle
components using more ecologically sustainable raw materials
and recycled materials. In addition, a holistic approach aims to
strengthen circular economy concepts and reduce waste at the
production sites. → Waste¹
Targets and projects were defined for all fields of action in the
reporting year, ranging from pilot projects for battery recycling
to the development of a catalog of criteria for the use of plant-
based renewable raw materials.
In the reporting year, the Porsche AG Group set specific targets
for the use of circular materials. These apply to newly
developed, purely battery-electric vehicle models.2
DUE DILIGENCE PROCESS
Porsche AG has paved the way organizationally, on a strategic
level and within the individual divisions and series, for the goals
to be pursued in a systematic manner. In doing so, it has
integrated the vehicle and project goals for circular materials
into the target system and related processes of selected model.
series. Selected business divisions are involved in the
implementation process. The Circular Economy working group
coordinates projects and monitors progress at least quarterly.
This is made up of representatives from the Sustainability
department and the relevant departments from the areas of
development, production, procurement, sales and quality. The
working group discusses the status of the targets set and the
associated projects and, if necessary, derives new measures and
further projects. The results are regularly reported to the
Executive Board.
To meet the targets for using circular materials, Porsche AG has
developed and implemented an internal control system that is
constantly being improved upon. It is used by the relevant
departments, e.g., procurement, development and finance,
making it possible to analyze and prioritize the measures to
increase the use of secondary materials in future vehicle
projects.
1 The Sustainability Report was not subject to an independent audit by an
external public auditor.
2 Excluding product upgrades.
CO₂e/vehicle
Metric tons of
2021
2022
1 For instance, the CO2 emissions in the use phase are calculated over 200,000
km per vehicle with reference to average consumption figures of the primary
market regions (EU+3 (Iceland, Norway, the United Kingdom of Great Britain
and Northern Ireland), China, the USA). The consumption figures are calculated
in accordance with the respective statutory review cycle. The intensity of the
CO₂ emissions from the electricity used to charge electric vehicles is also
calculated on the basis of energy mixes of the primary market regions. Supply
chains and recycling emissions stem from the vehicle life cycle assessments.
Vehicle maintenance is not included in the calculation.
Combined Management Report Non-financial statement 2023
231
↑↓ ↑ 0 |||
232
RESULTS
In the reporting year, the Porsche AG Group delivered 29,403
PHEVS (9.2% of total deliveries) and 41,023 BEVS (12.8% of
total deliveries). The share of all-electric vehicles delivered in
2023 increased in comparison to the prior year.
BEV share
%
2023
233
2022
Share of all-electric
vehicles (BEV) delivered
12.8
11.3
13.7
The Porsche AG Group reviews the effectiveness of its
decarbonization program on an ongoing basis. To this end, it
uses forecasts prepared during the year and commissions
external audits.
In the reporting year, the DCI was 62.7 tCO2e/vehicle, which
represents a slight decrease of 1.8% year on year.
Decarbonization index
DCI
2023
2021
%¹
€ million
%¹
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Manufacture of low-carbon technologies
CCM
for transport
3.3
5,143
12.7
Y
N/EL
N/EL
N/EL
N/EL
Manufacture of automotive and mobility
components
CCM
3.18
99
0.2
Y
Y; N;
N/EL²
N/EL
Y; N;
N/EL²
%¹
Sales
revenue
revenue,
change change
2023 mitigation adaptation
Water
Pollution
Circular
economy
Bio-
diversity
change
mitigation
change
adaptation
Circular
Water
Pollution
economy Biodiversity
Minimum
safeguards
(A.2.) sales
revenue,
2022
Category
Category
enabling transitional
activity
activity
€ (million)
Y; N;
N/EL²
N/EL
N/EL
N/EL
EL;
N/EL³
EL;
N/EL³
EL;
N/EL³
CCM
3.3
33,932
83.7
EL
N/EL
N/EL
N/EL
N/EL
N/EL
33,932
83.7
83.7
39,175
96.7
96.7
activities (B)
1,355
3.3
EL;
N/EL3
N/EL³
EL;
EL:
N/EL³
N/EL
Sales revenue of environmentally
sustainable activities (taxonomy-aligned)
(A.1)
5,243
12.9
12.9
5,243
12.9
12.9
Code
Of which enabling
A.2. Taxonomy-eligible but not
environmentally sustainable activities
(not taxonomy-aligned activities)
Manufacture of low-carbon technologies
for transport
Sales revenue of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomy-aligned activities) (A.2)
Sales revenue of taxonomy-eligible
activities (A.1 + A.2)
B. Taxonomy-non-eligible activities
Sales revenue of taxonomy-non-eligible
Of which transitional
Climate Climate
of sales
Climate
A. Taxonomy-eligible activities
3.3 Manufacture of low-carbon
technologies for transport
of which additions to capitalized
development costs for BEVS
of which additions to property,
plant and equipment for BEVS
3.18 Manufacture of automotive and
mobility components
B. Taxonomy-non-eligible activities
Total (A + B)
7,151
1 All percentages relate to the total amount of capital expenditure.
OPERATING EXPENDITURE
The operating expenditure (OpEx) reported by the Porsche AG
Group for the purposes of the EU Taxonomy comprises non-
capitalized research and development costs, which can be taken
from → Notes to the consolidated financial statements-13. Intangible assets.
The Porsche AG Group also includes the expenditure for short-
term leases recognized in the consolidated financial statements,
which can be found in Notes to the consolidated financial statements-
35. Leases and expenditure for maintenance and repairs.
The allocation of operating expenditure to the economic
activities followed the same logic as that described for capital
expenditure. All operating expenditure is associated with
economic activity "3.3 Manufacture of low-carbon technologies
for transport" and has been classified as taxonomy-eligible by
the Porsche AG Group.
Where possible, non-capitalized research and development
costs were directly attributed to vehicles. It was included if the
vehicles in question make a substantial contribution to the
climate change mitigation objective. Any non-capitalized
research and development costs directly attributable to vehicles
that do not meet the screening criteria were not included. Non-
capitalized research and development costs that were not
clearly attributable to a particular vehicle were taken into
account on a proportionate basis using allocation formulas. For
these and other operating expenses, the same allocation
formulas were used as for capital expenditure. Of the taxonomy-
aligned operating expenditure of €555 million (2022: €467
million), 64.1% (2022: 63.4%) was attributable to non-
capitalized research and development costs. The increase in
taxonomy-aligned operating expenditure - both the absolute
value and the proportion - is attributable to the growing
number of environmentally sustainable vehicle projects in line
with the EU Taxonomy.
EU Taxonomy: operating expenditure
Economic activities
Compliance
Operating expenditure
Substantial contribution to
climate change mitigation
with DNSH
criteria
Compliance
with
minimum
safeguards
11,3
810
Y
18.1
Y/N
Y/N
€ million
%¹
7,151
100.0
2,743
38.4
Y
Y
Taxonomy-aligned
operating expenditure
2,743
7,151
100.0
2,743
38.4
Y
Y
2,743
38.4
Y
1,297
38.4
40,530
€ million
€ million
B. Taxonomy-non-eligible activities
1,112
All percentages relate to the total amount of operating expenditure.
CAPEX PLAN WITHIN THE SCOPE OF THE EU TAXONOMY
According to the requirements of the EU Taxonomy, a
distinction must be made as to what extent the taxonomy-
aligned capital and operating expenditures a) relate to assets or
processes associated with environmentally-sustainable
economic activities or b) are part of a plan to expand taxonomy-
aligned economic activities or to convert taxonomy-eligible
economic activities into taxonomy-aligned economic activities
(CapEx plan). The CapEx plan within the scope of the EU
Taxonomy shows the total amount, i.e., the sum of all capital
and operating expenditures expected to be incurred to expand
taxonomy-aligned economic activities or to convert taxonomy-
eligible economic activities into taxonomy-aligned economic
activities in the reporting period and during the five-year
operational medium-term planning.
The CapEx plan in terms of the EU Taxonomy relates to
economic activity "3.3 Manufacture of low-carbon technologies
for transport" as listed in the environmental objective of climate
change mitigation.
Additions from leased assets (mainly vehicle leasing business)
are already based on existing ecologically sustainable activities,
which is why they were not included in the CapEx plan. The
Porsche AG Group allocated additions from intangible assets
and property, plant and equipment as well as non-capitalized
research and development costs to the CapEx plan, provided
that they result in a conversion or expansion. To do this, the
Porsche AG Group compared the average taxonomy-aligned
production volume from the operational medium-term planning
with the taxonomy-aligned vehicles of the reporting year and
used this ratio to apportion the taxonomy-aligned capital
expenditures. The Porsche AG Group took the share exceeding
the current taxonomy-aligned production volume into account
accordingly.
As a result of this, €1,741 million of the taxonomy-aligned
capital expenditure and €268 million of the taxonomy-aligned
operating expenditure in the reporting year were allocated to
the CapEx plan as defined by the EU Taxonomy. The total
amount expected to fall under this CapEx plan within the scope
of the EU Taxonomy in the reporting period and during the five-
year operational medium-term planning amounts to around €15
billion.
Combined Management Report Non-financial statement 2023
221
↑↓ ↑ 0 |||
222
TABLES PURSUANT TO EU TAXONOMY
Sales revenue 2023
Economic activities
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities
(taxonomy-aligned)
Substantial contribution criteria
DNSH criteria ("Does Not Significantly Harm")
Proportion of
taxonomy-
aligned (A.1.)
or -eligible
Proportion
Climate
mobility components
3.18 Manufacture of automotive and
49.9
555
%¹
Y/N
Y/N
€ million
%1
A. Taxonomy-eligible activities
1,112
100.0
555
49.9
%'
Y
555
49.9
3.3 Manufacture of low-carbon
technologies for transport
1,112
100.0
555
49.9
Y
Y
Y
Total (A + B)
Service
Combined Management Report Report on risks and opportunities
246
↑↓ ↑ 0 |||
In the reporting year, these came to €938. The average time
that a Porsche AG employee spends on education measures is
reported in (4) the qualification time. In the reporting year, this
indicator was 15.4 hours, an increase of 26% on the prior year.
Finally, (5) the qualification time among leadership is recorded.
This shows the average number of hours spent by management
on training and amounts to 23.2 hours.
In the reporting year, 113 trained specialists and 29 graduates
were hired by Porsche AG's specialist departments.
Information-related impacts for consumers and/or
end users
A central goal of the Porsche AG Group is to excite its
customers. It does not just want to meet expectations, it wants
to exceed them. The safety and security of customers is
paramount, which means they must be provided with relevant,
high-quality and accurate information. It is equally important for
the Porsche AG Group to protect consumer data as effectively
and reliably as possible and to ensure that the data it collects is
handled responsibly.
Data protection and Corporate Digital
Responsibility
TARGETS
The future of mobility is characterized, among other things, by
digital networking - from digital production and digital
processes to data-based offerings for customer care and
customers' driving experience.
Handling data, especially personal data of consumers, requires
particular care. The Porsche AG Group takes this responsibility
very seriously. The topics of data protection and Corporate
Digital Responsibility (CDR) are therefore closely interconnected
with the strategy and core processes of the Porsche AG Group.
The aim is to put digital transformation at the service of
employees, customers and society and to develop all products
with data protection in mind and design them from the outset in
a way that customers can be sure that their data is safe.
245
The Porsche AG Group understands Corporate Digital
Responsibility as corporate responsibility in the digital age. The
key areas of focus set by the Porsche AG Group are geared
towards the major questions associated with advancing
digitalization. In addition to dedicated projects in the field of
digital ethics Data Ethics and Al Ethics - there are various
initiatives in the areas of Digital Competence & Literacy, Digital
Inclusion, Green IT and Tech for Good under the umbrella of the
joint CDR.
Privacy
particularly the right to digital self-determination -
is a core component of Porsche customers' driver experience.
Protection of personal data is therefore an utmost priority at the
Porsche AG Group.
DUE DILIGENCE PROCESS
The implementation of the data protection strategy provides for
data protection to be strategically managed, reported and
implemented worldwide with a uniform data protection
management system. This system is to be aligned with the data
protection strategy to effectively reduce liability and data
protection risks.
The Porsche AG Group aims to avoid any data protection
breaches and to respect the rights of potentially affected
persons. Its own control system ensures adherence with
recognized national and international data protection standards
in internal processes. Porsche AG aims to ensure that this
approach is continuously enhanced by performing a regular
review of the data protection management system. The
objective here is to enable the quick integration of new data
protection requirements into processes and products and
adherence to regulatory data protection requirements.
The Porsche AG Group conducts customer surveys in selected
regions to ensure that data protection efforts are not only legally
compliant, but that data protection is designed in the interests
of customers. The criteria evaluated include fairness, control
and transparency.
Criteria for customer survey
>
>
Fairness: To what extent are the customer's needs taken
into account when processing data?
By adopting its data protection strategy as part of the Porsche
Strategy 2030, the Porsche AG Group has set itself ambitious
targets. These focus on customer-oriented data protection in
compliance with the relevant legal requirements. The ethical
handling of data should be further strengthened to enable data-
driven innovations.
Combined Management Report Non-financial statement 2023
To ensure the quality of the training courses, five indicators
have been defined that are captured while preparing the Annual
and Sustainability Report. Reported are (1) the number of
participants and (2) the number of participations in qualification
measures. The number of participants rose by 6% in comparison
to the prior year and stands at 22,935. The number of
participations is 217,289. In addition, information is collected
about (3) the training costs per employee.
Following a successful pilot in 2022, the Learning Experience
Platform (LXP) was rolled out for the Porsche AG workforce in
the reporting year. The LXP bundles various new learning
formats, learning spaces and tools. It guides employees and
managers through the range of offers with an Al-supported
search engine. It searches internal and external learning
platforms and bundles any measures for an employee's
individual training and development. Specialists can also
prepare and individually adjust their learner journeys.
The aim of the training courses and degree programs is to equip
young professionals with the specialist skills they need to start
their careers at Porsche AG. At the same time, the training
courses aim to impart the relevant future skills to help both the
trainees and the students be prepared to learn and adapt to
social and technological change as well as the transformation in
the automotive industry. In principle, all trainees and students
are offered permanent employment at Porsche AG upon
completion of their courses or programs.
In addition, Porsche AG is also involved in educational policy
beyond its own training formats by supporting schools with
career guidance and STEM subjects. This includes, for example,
projects with cooperation schools on topics such as design
thinking, coding experience, etc.
DUE DILIGENCE PROCESS
The Human Resources portfolio of the Executive Board acts as a
driver, initiator and governance function for the content,
processes and tools within training/employee development and
for shaping the transformation. The specific design and
implementation are carried out in the various application areas.
In addition to the centralized qualification opportunities
available for developing interdisciplinary skills and development
programs for the management, there are also offerings for
individual target groups, such as the "Finance Academy" or the
"Porsche Academy" for the global dealer organization.
To assess how effective the measures for employee
development are, Porsche AG uses an assessment system made
up of feedback surveys and key indicators. This is how the
participants' satisfaction with the interdisciplinary qualification
measures is assessed. Evaluating and optimizing the
qualification measures is a continuous process to meet the
changing requirements of the target group and Porsche AG. This
also includes regular meetings between employees and
managers to discuss their individual needs. Various key
indicators are also evaluated at regular intervals to ensure the
quality of the measures.
At the same time, Porsche AG regularly reviews the further
development of the corporate culture and the management
culture. For example, there is the annual employee survey
"Porsche Puls" with questions about the working environment,
which aims to sustainably improve employee satisfaction in
areas such as cooperation, leadership and further development.
The training apprenticeships and dual study programs offered
are developed in a structured process involving all stakeholders
based on strategic personnel planning and are geared towards
Porsche AG's long-term skills requirements. The focus and
content of the training are based equally on the training
framework/curricula and the future requirements of
Porsche AG. Relevant future skills complement the current
specialist and interdisciplinary training focuses: digital skills,
creativity, critical thinking, collaboration, communication,
learnability and growth mindset. Learning takes place via an
optimized mix of proven and new (digital) training formats. A
structure with different modules enables both standardization
and individualization and lays the foundation for self-guided
learning.
The key indicator for the quality of training at Porsche AG is the
average final grade, broken down into dual vocational training
and dual study program.
MEASURES
In the reporting year, the targets for employee development and
the structure of the transformation mentioned above were
pursued through a variety of measures, particularly at
Porsche AG and Porsche Leipzig GmbH. Other subsidiaries of
the Porsche AG Group may adjust the measures as needed and
use them as well.
Identify strategic needs for skills and proactively shape the
transformation
As part of the strategic skills management system initiated in
2019, the specific and generic development needs from
Porsche AG's specialist departments are collected annually by
representatives from the respective departments and
consolidated in a roadmap that covers the entire range of
strategic skills at Porsche AG in the short, medium and long
term.
In the reporting year, the cross-departmental qualification
measures jointly developed the skills required for the
transformation and aligned the current qualification portfolio in
a holistic way. Reskilling and upskilling programs can thus be
targeted towards strategically relevant fields of activity.
Qualify and develop employees as needed
In the reporting period, Porsche AG again expanded its range of
individual training and further personal development offerings
for its employees. For example, a program for upskilling in
system-based social media monitoring was developed, learning
formats to raise awareness of data handling and quality were
offered, and existing qualification modules on mechatronics
were expanded. In addition, Porsche AG has developed its own
job-specific offerings that are tailored to certain fields of
activity. These aim to ensure that vacancies in much-needed
areas of activity can be filled internally. Here, the participants
develop the necessary skills and knowledge within a defined
period as part of the program. The programs offer a close
integration of theory (state university and research) and
practice (Porsche content). They also specifically promote
interdisciplinary skills such as self-leadership and a growth
mindset. This is funded by a corresponding central budget,
which can be used for extensive qualification requirements of
employee groups and for individual transformation training.
Alongside qualification and development meetings for all
employees covered by a collective agreement, Porsche AG's key
tools and offerings in the reporting year also included work
shadowing in other company departments, the digital "Praxis
Transfer Trainer" (Practice Transfer Trainer) for personal
development through self-study, the Porsche Digital Academy
for developing and expanding digital skills, language training as
well as physical and virtual learning spaces such as the Porsche
Learning Lab at Stuttgart-Zuffenhausen. With the
Podcast@Porsche project, Porsche AG offers employees the
opportunity to share their knowledge about the company and
personal experiences in an internal Porsche podcast app.
Help managers shape the transformation
Managers play a decisive role as shapers of the transformation
in the Porsche AG Group. They must not only initiate and
manage change, but also communicate the vision of the
transformation, inspire the team and provide the necessary
resources. In 2023, the measures to promote individual
leadership skills were expanded further and backed up with
various qualification opportunities. A special focus was given to
dealing with change in an increasingly complex environment.
Trainees and students
The range of trainees at Stuttgart-Zuffenhausen in the reporting
year included eleven technical and three commercial
apprenticeships as well as eight-degree courses at the Baden-
Württemberg Cooperative State University (DHBW) with
numerous specializations.
The apprenticeships and degree courses provide the ideal
theoretical and practical preparation for starting a career. At
Porsche AG, project-based, hands-on learning is a high priority.
This is made possible during project phases in the project
workshop at the Porsche training center in Stuttgart-
Zuffenhausen. Porsche AG also encourages and challenges its
trainees and students with a wide range of opportunities to gain
practical experience in over 200 different areas, from
processing company orders to the transfer of knowledge with
the specialist departments of Porsche AG.
RESULTS
Control: To what extent can the customer influence the
intended use of the data?
specialists with the required skills by offering a wide range of
training opportunities. At Stuttgart-Zuffenhausen, around 150
trainees and students on dual study programs are recruited
each year and trained specifically for various areas of
Porsche AG.
Transparency: To what extent is the customer sufficiently
and clearly informed about their data processing?
MEASURES
The Executive Board established the product quality and
customer satisfaction forum at Porsche AG many years ago.
This is made up of the entire Executive Board and selected
heads of specialist departments. The forum makes customer-
oriented decisions in the areas of product quality and customer
satisfaction. Measures to consistently improve customer
satisfaction are worked on across all relevant company levels
and in a multistep process.
The development of a global guideline on advertising and
communication principles in the reporting year has created a
uniform basis for carrying out responsible marketing activities.
During their first two years of employment, sales consultants
working at the Porsche AG Group around the world undergo the
Porsche Global Certification System (PGCS) program, which
also focuses on the correct conduct of sales consultants in their
dealings with customers. In addition, the sales consultants
predominantly act according to the RACE principle: RACE
stands for Respect, Align, Compare and Elevate with the aim
of further strengthening customer centricity in employees'
mindset and actions. Since 2019, there has also been the role of
the Porsche Pros, who act as brand ambassadors and support
customers and interested parties with their in-depth knowledge
of Porsche products and services. This lays the foundation for
ensuring that the concept of fairness is always at the heart of
the sales employees' activities.
The customer relationship is measured at several points: The
success of providing information to consumers and end users is
measured by the number of clicks and open rates of mailings,
posts and videos. In addition, Porsche AG receives relevant
information regarding product quality and customer satisfaction
as well as qualitative feedback from Porsche customers via
retail and other - also digital-contact points (customer
touchpoints). These are also collected from customer ratings
and statements in market research studies on customer
satisfaction.
Since the reporting year, the Porsche AG Group has been using a
customer excitement index (CEI) to measure how enthusiastic
customers are along their journey - from initial contact to the
purchase and ownership of a product through to potential
repurchase. The index is used as a management tool in the
product quality and customer satisfaction forum. It is also
relevant for the remuneration of Porsche AG's Executive Board
and management.
Aspects of customer excitement
>
Purchase
>
Product quality
DUE DILIGENCE PROCESS
>
User experience with displays and control elements
Porsche Connect services, charging of electric and
hybrid vehicles
>
MEASURES
The Porsche AG Group provides consumers and end users with
information in numerous places: The most important sources of
information for customers include the Porsche magazine
Christophorus, the online Newsroom with its social media
channels, the web-based TV channel 9:11 Magazine, the 9:11
Porsche podcasts and the Porsche website. These provide
detailed information on the vehicle models as well as on the
digital services of Porsche Connect.
The Porsche Newsroom has been the central point of contact
for media professionals, bloggers and the online community
since 2014. The website functions as a corporate blog, social
media hub and download center all in one. Users will find a
comprehensive range of texts, images and videos.
Educational video tutorials are regularly published on YouTube
in the Spot On format, bringing Porsche customers closer to
their vehicles and explaining complex functions and product
features in an understandable way. The guides contain
information and practical tips on the latest technologies in the
vehicle models and provide the end user with answers to
frequently asked questions so that they can get the most out of
their vehicles. The relevant Spot On topics are selected based
on customer feedback, e.g., as part of the study by J.D. Power.
The success is reflected, among other things, in an
improvement in the J.D. Power Taycan Scoring and in the form
of a small number of customer complaints under "Difficult to
use". In the current reporting year, the initiative also supported
Taycan customers along their customer journey by sending out
Taycan Quicktipp (quick tip) e-mails with relevant content.
With the Porsche Advisors Club, an online community in the
four markets of Germany, China, the USA and the UK, the
Porsche AG Group has created a direct channel to its own
customers. It not only provides information on the Porsche AG
Group's products and services, but it also serves the purpose of
bringing ideas and feedback from customers back into the
company quickly and in a targeted manner. In addition to
traditional tools such as online questionnaires, the Porsche AG
Group uses a range of digital communication options, e.g.,
discussion forums, short surveys and online communication
between Porsche employees and customers to strengthen
customer relationships.
Following a pilot project in 2022, Porsche AG broadened the CEI
in the reporting year and now measures customer enthusiasm
worldwide in the aspects of purchase, product quality, user
experience with displays and control elements, Porsche
Connect services, charging of electric and hybrid vehicles and
service. The CEI is based on customers' expectations and
differentiates between "unsatisfied" customers, whose
expectations were not met, "satisfied" customers, whose
expectations were met, and "excited" customers, whose
expectations were exceeded. Only those in the "excited"
category are included in the index. The performance indicator is
based on a survey of more than 300,000 customers worldwide
each year.
Combined Management Report Non-financial statement 2023
249
>
For this purpose, it is enhancing digital offerings with a clear
customer focus and providing information across numerous
channels on a wide range of topics, products and services. The
Porsche AG Group endeavors to provide consumers with
transparent information about products. Technical data,
consumption figures, product descriptions and standard and
optional equipment are listed and visualized in the best possible
way using pictures and videos, thus allowing informed
purchasing decisions.
The Porsche AG Group aims to be able to reach its customers
around the clock, whatever their location, and vice versa. The
Porsche AG Group wants to expand customer relationships and
customer satisfaction in the long term and rank high in selected
customer studies.
TARGETS
The Porsche AG Group is driving digitalization in its departments
and offerings from vehicles and the associated services to
numerous digital interactions with customers.
With its information security management system (ISMS), the
Porsche AG Group has an established way of handling internal
and external data and information. The task of the ISMS is to
adequately protect company-relevant information in
accordance with its protection requirements and thus prevent
damage to the Porsche AG Group. The protection of information
extends to all business processes and business fields,
regardless of company structures and national borders, and
focuses on the fundamental protection objectives:
confidentiality, integrity, availability and authenticity.
Porsche AG's ISMS has been certified in accordance with the
international standard DIN EN ISO/IEC 27001:2017 since
2021. As part of this certification, annual surveillance audits are
carried out by independent external auditors.
In a world of increasing cyber threats, targeted security
measures are of central importance. The digital unit of the
Porsche AG Group, Porsche Digital GmbH, continued to drive
forward its cyber security activities and expand its internal
capacities in the reporting year. In October 2023, a bug bounty
program was launched together with external cyber security
researchers to proactively identify security vulnerabilities to
further improve the security of products and digital services.
Porsche AG has also set up a working group to discuss the
responsible use of artificial intelligence (AI) with representatives
from the main company departments, the Works Council and
the departments of data protection, information security and Al
ethics. The working group has drawn up a guideline formulating
the ethical requirements for Al development and use. For
Porsche AG, digital ethics means consciously using the potential
of Al for the benefit of society and the environment. It is
strategically important to address the risks and opportunities
associated with the use of Al at an early stage.
The Porsche AG Group has established internal strategies and
guidelines to effectively and sustainably protect personal data,
particularly that of consumers and end users. To this end,
processing requirements (e.g., a specific purpose being
required, pseudonymization, data separation and privacy by
design and default) and the protection of personal data were
integrated into business processes and the IT development
process.
In the reporting period, a new privacy center was also set up in
the My Porsche customer portal to further strengthen
transparency and control when dealing with personal data. Here,
customers can manage their consents and influence the
purposes for which the Porsche AG Group may use their data:
for product improvement, to support existing and prospective
customers, and for the transfer of data to third-party providers.
By consenting to the use of data for the individual support of
existing and prospective customers, customers may receive, for
example, information on vehicles, new products and offers or on
participation in events or customer surveys of Porsche AG and
selected subsidiaries. Customers decide whether and how they
wish to be contacted. The customer also controls data releases
to third-party providers in the Porsche privacy center. These are
data-based services such as insurance rates based on usage, a
digital logbook or smart charging applications.
Customers support the Porsche AG Group with the data they
provide voluntarily. The Porsche AG Group uses the data to
develop and optimize functions and services and to improve
vehicle models. The Porsche AG Group uses the data from
Porsche Communication Management (PCM) to continuously
improve it, for example, its menu navigation. The improved
usability benefits Porsche drivers. Another example: Usable
charging data from electric-powered vehicles not only flows
into the further development of charging management and
battery control, but it is also an important basis for future
product decisions and developments.
In current Porsche models, customers also have the option of
controlling the data processing of their vehicle by selecting
options in a privacy menu. For example, the vehicle can be set to
private mode, which only permits legal data transmissions or
data transmissions required for the operation of the vehicle,
such as the "eCall" emergency call system.
Combined Management Report Non-financial statement 2023
247
248
↑↓ ↑ 0 |||
A project on Corporate Digital Responsibility was initiated
across all specialist departments as early as 2022. The duration
of the project as well as the findings derived from it go beyond
the reporting year. Initiatives on various dimensions have been
launched as part of the project.
Even before the EU AI Act came into force, the Porsche AG
Group had already defined self-imposed guidelines for dealing
with Al and data. Considering the principles of fairness,
transparency, reliability, accountability and security, it
formulated specific requirements that should be part of the IT
development process.
Digital Competence & Literacy encompasses the skills and
knowledge required to effectively use and understand digital
technologies. They are a key component of the digital
transformation and affect all stakeholders both within the
Porsche AG Group and in society. The Porsche AG Group has
launched numerous initiatives in this area on topics such as
Digital Competence, Digital Wellbeing, Digital Literacy and
Digital Culture. Further activities to promote Corporate Digital
Citizenship are being developed.
RESULTS
The Porsche AG Group again made significant progress in 2023
with the measures listed. In the area of data protection, the data
protection management system was also rolled out to selected
subsidiaries outside the EU in the reporting year.
With the help of the data protection management system, the
Porsche AG Group aims to achieve a minimum level of data
protection within all its group companies and a uniform focus on
common data protection values, while at the same time taking
different local data protection laws into account. Measures that
complete the data protection management system are to be
implemented in 2024.
Training and information offerings were also expanded for all
Porsche AG employees in the reporting year.
In the reporting year, no complaints regarding data privacy
incidents were lodged with Porsche AG either externally or by
any authorities. Internally, however, incidents were identified
and reported thanks to the internal control measures and
vigilant employees. The rate of internal reports was higher than
in prior years once again, due to factors including continuous
awareness measures and employee training. In all the justified
cases, Porsche AG took steps to remedy the causes. Where
prudent, additional steps were taken to prevent similar incidents
from happening in the future.
Access to high-quality information
Customer feedback is statistically analyzed to derive relevant
and needs-based measures to improve customer satisfaction
about data protection in the future.
3. Help managers shape the transformation
2. Qualify and develop employees as needed
Identify strategic needs for skills and proactively shape
the transformation
TARGETS
Porsche AG has defined strategic dimensions for diversity that
are based on the legally protected dimensions of diversity -
ethnic origin, gender, religion and ideology, disability, age and
sexual identity. The aim is to ensure even more diversity at
Porsche AG, to promote compliance with the German General
Equal Treatment Act and to create an environment that fosters
the individuality of each person and values all perspectives.
Diversity fields of action
1.
Conscious formation of mixed teams
2. Increase the proportion of women
3.
4.
Promote ethnic diversity and international experience
Facilitate the inclusion of employees with disabilities
5. Support the LGBTIQ community
6. Improve cooperation between the generations within
the workforce
Diversity
7.
Porsche AG has formulated strategic goals and measures to
implement these fields of action. The targets are translated
annually into an action plan for the following year. The status
quo of each measure is documented on an ongoing basis,
recorded in a corresponding management system and regularly
discussed with top management.
In view of the gender quota required by law, Porsche AG has set
itself the target of increasing the proportion of women at the
first management level below the Executive Board to 20% and
at the second management level to 18% by 2025.
DUE DILIGENCE PROCESS
The Porsche AG Group rejects any form of discrimination. Equal
opportunities and promoting diversity are firmly anchored in its
Code of Conduct and the Porsche Code leadership model. The
Executive Board and the Works Council confirmed that diversity
should be a fixed part of the Porsche corporate culture by
signing the German Diversity Charter, a voluntary commitment
for German businesses, in 2019.
The Culture, Diversity and HR Communications department is
responsible for ensuring the long-term implementation of equal
opportunities and diversity. It acts as a driver and competent
partner and is assigned to Employee Development and
Corporate Culture within the Human Resources portfolio of the
Executive Board. The targets and measures are regularly
coordinated in committees such as the Equal Opportunities
working group and reported to the Executive Board via the
Environment and Sustainability Steering Committee and
Environment and Sustainability Steering Group on a regular
basis.
The topics of equal treatment and opportunities within the own
workforce are included in the Porsche AG Group's guidelines on
labor and social law and HR compliance, among others. The
group guidelines apply to employees of the Porsche AG Group
and are freely accessible to them. The subsidiaries are
responsible for reviewing and implementing the group
guidelines in similar documents.
Porsche's independent and externally operated whistleblower
system is available 24/7 to report any indications of potential
breaches of equal treatment and equal opportunities.
→ Corporate governance, corruption and bribery
Furthermore, Porsche AG has set up a company complaints desk
known as "AGG" (the German abbreviation for the General Equal
Treatment Act) to which employees can turn in potential cases
of discrimination or to which they can submit a specific
complaint.
Combined Management Report Non-financial statement 2023
Establish an inclusive culture and an understanding
of diversity in all Porsche companies
Equal treatment and opportunities for the Porsche AG Group's
own workforce also include the development of employees'
skills. The Porsche AG Group sees it as its responsibility to
develop both technical and interdisciplinary skills in employees
for changing tasks and roles in various future fields.
The Porsche AG Group actively champions diversity, equal
opportunities and equal treatment, and firmly believes that this
is in its best interest as a company. Diversity leads to new ideas
and drives innovation, which makes it a key success factor. The
Porsche AG Group strives to create a working environment
where employees of all ages and genders, regardless of origin
and cultural background, can contribute their different skills and
perspectives in the best possible way.
Equal treatment and opportunities within the own
workforce
240
In order to counter the specific environmental and human rights
risks in the supply chains of raw materials, particularly the risk
of child labor, the Volkswagen Group has implemented the raw
material due diligence management system (RMDDMS) in
cooperation with Porsche AG. This describes the process for
identifying, assessing and reducing sustainability risks in raw
material supply chains.
Furthermore, the Volkswagen Group publishes an annual
Responsible Raw Materials Report in line with global normative
frameworks, including the OECD Due Diligence Guidance for
Responsible Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas (OECD Minerals Guidance), the OECD Due
Diligence Guidance for Responsible Business Conduct, the
OECD-FAO Guidance for Responsible Agricultural Supply
Chains, the OECD Guidelines for Multinational Enterprises and
the UN Guiding Principles on Business and Human Rights. The
report was published for the first time in 2021 and covers
Porsche AG's Stuttgart-Zuffenhausen site, among others.
Porsche AG does not see any significant risk of child, forced or
compulsory labor in its operations at its own sites or at its
selected direct suppliers of production materials. In mining,
there are certain raw materials where there is, however, a higher
risk of child labor. This is especially true in countries where
legislation and monitoring are weak or where armed conflicts
are taking place. Porsche AG is therefore working with risk
analysis and the measures such as the SCGM or the raw
materials management system to avoid potential child labor
violations and reduce the risks as far as possible.
RESULTS
In the course of 2023, the S-rating was extended to other
supplier sectors according to risk priority to ensure compliance
with human rights standards, social employment practices and
responsible resource management at Porsche AG's direct
suppliers. In addition, the underlying survey was expanded to
include specific requirements relating to human rights, the
environment and the LKSG.
By the end of the reporting period, a total of 1,884 direct
suppliers had submitted a self-assessment as part of the S-
rating.
Based on sales revenue, roughly 88% of direct suppliers of
production materials with more than 100 employees on site
have documented that they have an environmental
management system certified in accordance with ISO 14001,
validation in accordance with the Eco-Management and Audit
Scheme (EMAS) or a commitment letter.
Following an initial analysis of the direct supplier data, detailed
on-site inspections are carried out on a risk basis. Five on-site
inspections took place worldwide in 2023. No violations of the
sustainability requirements were identified.
By the end of the reporting year, 1,396 S-ratings were available
for direct suppliers of production materials, whose order volume
corresponds to around 81% of the total procurement volume. Of
these direct suppliers of production materials, 1,099 have an A
rating and therefore meet the highest internal quality standards.
Porsche AG has set itself the target of meeting the strictest
internal quality standards relating to sustainability (S-rating "A")
for 90% of the production material it purchases from direct
suppliers by 2030. This was 88.3% in the reporting year.
S-rating for direct suppliers of production material to
Porsche AG
%
2023
2022
2021
Share with S-rating "A"
88.3
88.6
67.9
In 2023, nine complaints were processed via the complaints
process at Porsche AG, and a further 52 cases were processed
under the SCGM. Complaints and SCGM cases received in the
reporting year were investigated, any evidence needed was
requested and if necessary - appropriate measures for
continuous improvement were developed. In the reporting year,
no direct suppliers were temporarily blocked for new contracts
due to violations.
The human rights focus system (HRFS) for particularly serious
risks, such as forced labor, unequal pay or intransparency in the
supply chain, was developed further in the reporting year. The
audit strategy was also expanded to place a greater focus on
transparency surrounding subcontracting from direct suppliers
and the passing on of sustainability requirements to
subcontractors. The transparency of the supply chain is also a
focus for raw materials, which are analyzed for risks as part of
the RMDDMS.
In the reporting year, no relationships with direct suppliers were
terminated due to negative environmental or social impacts in
the supply chain.
241
↑↓ ↑ 0 |||
242
↑↓ ↑ 0 |||
16.1
Second management level
17.3
15.7
16.9
15.1
1 Information relates to Porsche AG.
Numerous managers took part in the extensive project; the
Executive Board members were also actively involved. Internal
communication to raise awareness further started in 2023 and
most of the measures will be implemented from 2024.
At Porsche AG in fiscal year 2023, a comparison of the average
remuneration of all women with the average remuneration of all
men reveals a 5.7% difference in basic annual remuneration and
a 0.4% difference in direct remuneration in the favor of women.
This difference is due to the distribution of men and women
across the various hierarchical levels, with 51% of all employed
men being in the lower collectively agreed pay scales (including
incentive wage earners), compared to just 23% for women.
Consequently, the average remuneration for all men is lower
than the average for all women. → Non-financial key figures
The Porsche women's network She@Porsche recorded
significant growth in the reporting year. Two new networks
were launched in 2023:
Cultures@Porsche and Väter@Porsche (Fathers@Porsche). The
aim of the fathers' network is to promote an understanding of
the modern father's role, make the needs of fathers in the
company visible and provide a contact point and platform to
exchange experiences. The cultures network aims to promote
the exchange of international experiences and bring different
perspectives together.
Now in its fifth year, the mentoring program is still very popular.
More than 200 mentor tandems were actively involved in the
mentoring format in the reporting year.
In 2023, Porsche AG identified eleven cases of discrimination
(including sexual harassment), each of which was punished
accordingly. No structural background was evident. For
confidentiality reasons, no further information can be provided.
The statistics on disciplinary measures in instances of
discrimination relating to the diversity dimensions are evaluated
for potential structural fields of action and appropriate
measures are taken as needed. This includes, for example,
targeted training courses.
Employee development
TARGETS
Electromobility, digitalization, new business models: The
transformation of the automotive industry is well underway, and
these changes also influence Porsche AG. "Transformation" is
therefore one of the six cross-cutting strategies in the Porsche
Strategy 2030, aiming to support employees in times of change
and develop a future-proof workforce, among other things. With
the Porsche Workforce Transformation project launched in
2021, Porsche AG is coordinating retraining and further training
and providing new ways and methods of working. The crux of
the matter here is to identify existing and required skills and
then to use and enhance these as best possible in a targeted
way.
Combined Management Report Non-financial statement 2023
243
244
↑↓ ↑ |||
Cross-departmental collaboration and the establishment of
multipliers in the entire organization are decisive factors in this
endeavor. Overall, there are three targets for employee
development and the structure of the transformation:
Employee development and shaping the transformation
1.
20.0
250
First management level
2022
A diversity cockpit presents measurable diversity criteria for all
Porsche AG. Key figures on gender diversity, personal skills
(serious disability), internationality and generations are
evaluated annually by the main departments of the portfolios.
The cockpit also provides an overview of training qualifications
and the use of offers for flexible working hours.
MEASURES
To ensure a more balanced gender ratio in Porsche AG's overall
workforce, the targets for increasing the proportion of women at
the first and second management levels by 2025 were broken
down into annual sub-targets in accordance with a target path.
The impact on this objective is considered for all new hires. To
secure the selection of female candidates for the longer term,
corresponding portfolio-specific targets have also been defined
within Porsche AG for the lower management and collectively
agreed pay scale groups. The entire Executive Board approves
hires to both the first and second management levels.
Porsche AG takes diversity and equal opportunities very
seriously and pays wages and salaries in line with uniform
standards, regardless of gender, religion, origin, age, disability,
or sexual orientation.
For employees covered by a collective bargaining agreement
and management within and outside of the collective bargaining
agreement, the remuneration policies and amounts are based on
collective/company regulations, whereby the basic
remuneration is calculated based on described work tasks, with
consideration for knowledge and abilities, problem-solving
skills, potential influence, and fields of responsibility. The
variable remuneration is generally performance-based.
The amount of variable remuneration is calculated based on
general or individual performance criteria as well as selected
KPIs, according to uniform benchmarks and standards.
Collective and company regulations also provide for one-off
payments. Market conditions and benchmarks are considered to
offer competitive compensation. The goal is to provide
employees with attractive, competitive, and non-discriminatory
remuneration while identifying and eliminating potential
injustices.
The Culture, Diversity and HR Communication department
offers employee training activities to raise awareness and
increase knowledge about diversity and equal opportunities
across all hierarchical levels: Alongside training for employees,
these also include mandatory training for newly appointed line
managers and for employees who have recently joined
management.
In a themed week around German Diversity Day in 2023,
Porsche AG called on its workforce to understand the
importance of a diversity of views for shared success and to
commit to diversity, respect and tolerance. There were also
presentations, workshops, hacks and opportunities for dialog. In
the reporting year, event-related communication relating to
diversity focused increasingly on visual communication with an
independent logo to anchor the topic more firmly in the minds
of the workforce.
In 2023, a diversity toolbox also helped managers at
Porsche AG stand up for diversity and equal opportunities in
their day-to-day work and management routines. The toolbox
provides a range of measures, tools and ideas to enable users to
experience the diversity of views in all dimensions and to
question traditional ways of thinking and behaving.
Porsche AG also expanded its National and International
Diversity Community further in the reporting year. This forum is
run by selected subsidiaries of the Porsche AG Group and their
diversity managers around the world and provides tools and
ideas for putting diversity of views into practice.
To promote diversity and equal opportunities, the Porsche AG
Group also relies on its internal networks and supports their
expansion. Diversity networks are key building blocks for giving
visibility to underrepresented views and thus promoting equal
opportunities. The diversity networks handbook, which provides
support from 2021, allows for the creation of employee
networks across protected diversity characteristics and defines
corresponding framework conditions.
The Porsche women's network She@Porsche is an established
platform for exchanging experiences across departments. It
offers several dialog formats and varied methods of support,
e.g., peer counseling, impetus for self-empowerment and
insights into the day-to-day working life. This enables better
visibility for women at Porsche AG, their closer networking as
well as taking female perspectives into account.
The Proud@Porsche network for representatives, supporters
and interested parties of the "sexual orientation and identity"
diversity dimension is an integral part of the Porsche AG culture
too. It stands up for the concerns of people of all sexual
orientations within and outside Porsche AG. For the second time
in the reporting year, Proud@Porsche together with the
Member of the Executive Board responsible for Human
Resources and other representatives of Porsche AG and
selected subsidiaries were present at the Christopher Street
Day parade in Stuttgart.
Porsche Mentoring is a format for a comprehensive exchange of
experiences and changing views on both sides. Generation
tandems were launched in the reporting year: a platform that
matches employees with less professional experience with
those with more professional experience; this aims to promote
exchanges of intergenerational experiences and create a greater
level of mutual understanding.
The diversity networks and the mentoring program are open to
employees of Porsche AG and selected subsidiaries around the
world.
To promote inclusion, Porsche AG cooperates with workshops
for the disabled in compliance with all legal requirements and is
strongly committed to further expanding these cooperations.
Porsche AG launched a project on accessibility in the reporting
year. The first step here is to analyze structural and digital
accessibility to then derive measures that should be
implemented and integrated into processes and standards.
RESULTS
In the reporting year, the statutory gender quota increased to
20% at the first management level and 17.3% at the second
management level, thus meeting the targets for 2023.
Porsche AG still considers itself on track to meet the target by
2025. To further increase the proportion of women in
management beyond the targets set, Porsche AG implemented
a project on the proportion of women in management in the
reporting year. The aim is to analyze the challenges involved in
increasing the proportion of women in management in more
detail and develop measures accordingly.
Women in management positions-actual values for statutory
gender quota¹
%
2023
2021
RESULTS
259
In a pilot project in 2022, the CEI (average proportion of
"excited" customers) across the six customer touchpoints
described above was calculated for the first time. The CEI
reached 46.7% in the reporting year.
Financial net potential
Risk class E
≤ €5 million
Risk class D
Level 0
Level 1
Level 2
> €5 million-€10 million
Risk class C
> €10 million-€100 million
Level 3
Risk classes
Risk class B
Level 4
Risk class A
> €1 billion
Risk owners:
Porsche AG specialist departments and subsidiaries
Stochastic risk modeling uses appropriate probability
distributions (e.g., equal distribution, triangular distribution,
etc.) and IT-supported simulation methods (Monte Carlo
simulation). As part of the risk simulation, the expected value of
the financial loss and the value at risk are determined at a
confidence level of 99%.
On a quarterly basis the significant risks are reviewed by the
Risk Council for completeness. The Risk Council is an advisory
body tasked with reviewing baseline standards for instruments
and methods of the RMS and the associated reporting system.
The risk situation for the respective quarter and the overall risk
are reported to the Executive Board and Supervisory Board.
Risks from the sustainability environment (ESG) are also
integrated into these processes.
A core element of risk management of the Porsche AG Group is
that risks can be reported and updated without delay via the
group-wide reporting channels that have been set up. Outside
of the standard process, there is an ad hoc reporting process for
risks of at least risk class 3. The risk managers and main
departments of Porsche AG and the subsidiaries integrated in
the risk management are supported by central risk
management. Alongside defining group-wide baseline
standards on risk management in the form of policies, central
risk management is responsible for consolidated and
aggregated risk reporting to the Executive Board and
Supervisory Board.
The Porsche AG Group has ensured the level of qualification and
extensive training of employees involved in the risk
management process. In addition, voluntary refresher trainings
are also offered alongside compulsory trainings. Central risk
management reviews the progress of training and the level of
coverage on an ongoing basis and reports this on an annual
basis to the Risk Council.
INTERNAL CONTROL SYSTEM
> €100 million-€1 billion
Risk classes of the Porsche AG Group
The significant risks, i.e., risks with a possible financial net
potential of more than €100 million, i.e., risks in risk classes 3
and 4, are quantified in the next step by central risk
management, the risk owners and with the involvement of other
key functions. Central risk management coordinates with the
risk owner and other key functions in order to take the
necessary information into account in the stochastic risk
modeling. The reporting period for the stochastic risk simulation
covers the current fiscal year and the subsequent three fiscal
years.
The risks are categorized into different risk classes based on
their financial net potential. The net potential indicates the
greatest possible financial impact of the risk for the Porsche AG
Group, taking into account financial losses from reputational
risks and consequences under criminal law. All risk management
elements already in place are taken into account.
Quantitative risk assessment for significant risks
using stochastic risk modeling, taking into
account the qualitative assessment criteria
"Reputational damage", "Consequences under
criminal law" and "Likelihood of occurrence"
Holistic risk assessment for significant risks
involving all relevant specialist departments
(central risk management, risk owners, other key
functions)
Structuring based on risk categories: Strategic
risks and opportunities, sales risks and
opportunities, supply risks and opportunities,
financial risks and opportunities, personnel risks
and opportunities, operational risks and
opportunities
All significant risks with a financial net potential in
a worst-case scenario of > €100 million The net
financial potential also includes possible financial
losses from reputational risks and consequences
under criminal law.
Reporting of the simulated expected values of the
quantitative risk assessments at fiscal year level:
current fiscal year and the three subsequent fiscal
years. Stochastic risk modeling is carried out for
the significant risks.
Risk-bearing capacity concept includes equity
and gross liquidity
The basis of consolidation of the RMS matches that of the
Porsche AG Group. If it makes sense from a risk perspective, the
basis of consolidation can be expanded for risk management
purposes to include other subsidiaries.
In line with the decentralized organizational structure, risks are
identified, recorded in the risk management IT tool, assessed
and managed by the main departments of Porsche AG and
those subsidiaries linked to risk management as the risk owners.
The reported risks are generally tested for their plausibility by
central risk management and other key functions.
Combined Management Report Report on risks and opportunities
255
256
Structures and procedures of risk management
Information and acknowledgment
Review of the risk situation
for completeness
Executive Board
Advisory body:
Risk Council
Supervisory Board
Plausibility test and assessment
of the risk situation
Central risk
management function
Risk owners
Other key functions
Risk identification and reporting
The Porsche AG Group's internal control system (ICS), which is a
key element of the RMS, serves to duly manage operational
risks. Operational risks form part of the risk inventory (these and
other risk categories are explained in the section → Risk strategy).
The risk inventory of the Porsche AG Group includes all risks
recorded in the IT tool. Where operational risks are process-
related, they are generally managed by internal controls and
mapped in the ICS. This also includes risks relating to
sustainability.
The ICS is based on various process steps. The first step is for
the risk owners to identify and record operational risks and
controls. This is followed by the financial evaluation of the net
potential and assessing the relevance to risk relating to the
compliance, anti-fraud, reporting and operational criteria. In a
final step, the risk owner gives their approval. Operational risks
are updated at least once a year.
In addition, annual risk-based tests of operating effectiveness
are carried out on the controls set up to manage the operational
risks. The scope of the test of effectiveness is based on the
determined risk relevance. The results of the tests of
effectiveness are reported to the Executive Board and
Supervisory Board of Porsche AG.
Executive Board reporting
Risk strategy
(incl. risk appetite)
Supervisory Board reporting
Reporting
44
Risk-bearing capacity calculation
A risk inventory with all risks
Strategic
risks
Sales
risks
Supply
risks
Financial
risks
Personnel
risks
Operational
risks
The term risk is defined as the possibility of a negative deviation
from a budgeted figure or target. A net view is generally taken
here. This means that risks are assessed taking risk
management measures into account. The Porsche AG Group's
RMS is made up of several integrated and interrelated elements
and comprises risk categories relevant to the Porsche AG Group,
which are explained in more detail below. → Risk strategy of the
Porsche AG Group
RISK CATEGORIES OF THE PORSCHE AG GROUP
Strategic risks result from possible deviations from the plan,
e.g., in strategic premises or threats to critical success factors.
This risk category therefore includes risks resulting from supply
chain dependencies or geopolitical tensions, the stability of the
economic and financial markets and the regulatory environment.
However, risks in connection with the successful
implementation of our luxury brand business strategy and the
electrification strategy, competitive risks and reputational risks
also fall into this category.
Aggregation
Control
Quantification
Relevance assessment
Identification
These are analyzed over the long-term and are therefore
primarily evaluated on a qualitative basis. Strategic risks must
be updated at least annually by the risk owner.
Sales risks arise from possible deviations from plan in the sale of
vehicles. Risks resulting from changes in customer needs and
requirements for products and in brand perception are also
contained in this category. Increasingly intense competition in
the industry also represents a challenge for the Porsche AG
Group and can have a noticeable impact on the price and
product mix. Constantly changing customer preferences and
government regulations also represent significant risk factors.
Sales risks are updated on a quarterly basis.
The My Porsche customer portal is a central digital point of
contact with customers. The reach of both the portal and the
My Porsche app was expanded further in the reporting year.
Evidence of the successful provision of information can be seen
in the fact that there were fewer calls with questions to the
Porsche centers and the Porsche Hotline in the reporting year,
among other things.
Risk strategy of the Porsche AG Group
Methodology fiscal year 2023
Risk strategy
The business divisions use this to derive short, medium- and
long-term opportunity potential and operationalize this
potential accordingly. In addition to a systematic
implementation of its strategy, the Porsche AG Group's long-
term competitiveness and future viability is to be ensured
through further efficiency and opportunity initiatives, among
others. The identification of specific targets from the
aforementioned initiatives offer additional potential to generate
opportunities.
Monitoring of the effectiveness of risk
management, the internal control system and the
compliance management system
To ensure the effectiveness of the RMS and the ICS,
optimization needs are identified and implemented as part of
the continuous monitoring and improvement processes. Internal
and external requirements are taken into consideration equally.
This also applies to Porsche AG's compliance management
system in accordance with the Porsche Group's compliance
management guideline, which aims to ensure compliance with
the relevant legal provisions and regulations considered there
and is continuously monitored and enhanced in a risk-oriented
manner, taking into account internal and external requirements.
The findings of the continuous monitoring and improvement
process of the RMS/ICS are reported to the Executive Board
and the Supervisory Board of Porsche AG.
There is also quarterly reporting on the risk situation and
reporting once a year on the results of the test of effectiveness.
of the ICS to the Executive Board and the Supervisory Board of
Porsche AG. There is regular and ad hoc reporting on
Porsche AG's compliance management system to the Executive
Board and Supervisory Board.
Based on this reporting content, the Executive Board and
Supervisory Board of Porsche AG are not aware of any
indications of the Porsche AG's RMS/ICS or compliance
management system not having been appropriate or effective
as a whole in the fiscal year 2023.
Irrespective of this, there are inherent limitations of the
effectiveness of every risk management and control system or
compliance management system. For example, even a system
that is deemed appropriate and effective cannot ensure that all
risks that actually arise or legal violations are identified
beforehand nor can the possibility of process disruptions be
completely ruled out.
Internal control and risk management system in the
context of the group accounting process
The internal control and risk management system relating to
accounting includes methods and principles as well as
measures and controls derived therefrom, which should ensure
that the information required for the preparation of the annual
financial statements and consolidated financial statements of
Porsche AG and the combined management report of the
Porsche AG Group is complete, correct and transmitted in a
timely manner. These measures and controls should minimize
the risk of a material misstatement in the accounting and
external reporting.
The Porsche AG Group's accounting is generally organized along
decentralized lines. Accounting duties are largely performed
independently by the consolidated subsidiaries. The Volkswagen
Group's IFRS Accounting Manual is used to ensure the
application of uniform accounting policies. In addition, the
Porsche AG Group specifies these provisions in guidelines for
the quarterly and annual financial statements, supplemented by
further reporting rules.
Control activities at group level include analyzing and, if
necessary, adjusting the data reported in the financial
statements presented by the subsidiaries, also taking into
account the auditors' reports and the outcome of the meetings
on the financial statements with representatives of the
individual companies. These discussions address the financial
statements of the subsidiaries with regard to specific significant
issues.
Combined Management Report Report on risks and opportunities
257
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258
↑↓ ↑ ||
Alongside plausibility checks, other control mechanisms applied
during the preparation of the annual and consolidated financial
statements of Porsche AG include the clear delineation of areas
of responsibility and the application of the principle of dual
control.
Data consistency and the plausibility of the contents between
the statement of financial position, income statement and notes
to the financial statements are essentially verified using a multi-
layer validation system "Porsche Corporate Management and
Reporting System" (PURe) and based on the group-wide
standard system "Volkswagen Consolidation and Corporate
Management System" (VOKUS). PURE and VoKUS enables the
consolidation and analysis of backward-looking data and
Controlling's forward-looking data. VoKUS offers centralized
master data management, an overarching authorization concept
and uniform reporting. It also provides the required flexibility
with regard to changes to the legal environment.
Group-wide guidelines on the design of the internal control
system for accounting processes are defined and continuously
enhanced in the internal control system relating to the
accounting process of the Porsche AG Group. A regular risk
analysis and evaluation is carried out in order to identify
significant risks for the accounting process. The necessary
controls are then defined and documented and performed in line
with group-wide guidelines. The control system contains
preventive and detective controls and is integrated into
accounting processes at the respective group functions and
companies.
The effectiveness of the internal control system in the context
of the accounting process is systematically assessed using
standardized procedures. Regular tests based on samples are
performed. These form the basis of the assessment of whether
the controls are appropriately designed and effective. Another
component of the standardized procedures is the sustained
elimination of identified control weaknesses. At the end of the
annual cycle, the companies concerned confirm that the group-
wide guidelines have been implemented and the corresponding
tests of operating effectiveness have been carried out.
The results from the accounting-related ICS are a component of
the reporting on the RMS/ICS to the Executive Board and
Supervisory Board of Porsche AG.
Opportunity management
Alongside the effective management of risks when making
business decisions, in a dynamic market environment arising
opportunities also have to be identified in the best possible
manner and persistently realized.
The stable earnings indicators and cost structures combined
with a high level of financial strength provide the Porsche AG
Group with the financial headroom for future investments in
products, technology and services, even in a challenging
environment. The Porsche AG Group is managed by targets and
opportunities with a clear focus on a sustainable increase in the
value of the company.
Holistic risk inventory
Opportunities management is closely based on strategic targets
and is an integral component of the operational structures and
procedures in conjunction with the general planning and
management processes in the Porsche AG Group. This includes,
among other things, revenue and cost optimization as well as
product enhancement and the improvement of mobility and
financial services. For this purpose, the Porsche AG Group is
constantly analyzing the environment of its business model in
order to identify trends, e.g., from the market, technology,
society and environment as well as changes in key factors at an
early stage. With the help of scenario analyses-including
strategic business planning, the affected business divisions and
Controlling-the developments relevant for the business model.
are considered and assessed so as to derive any potential
effects for the Porsche AG Group.
Risk-bearing capacity concept includes
consolidated equity
The Executive Board receives regular reports on the progress of
implementing the compliance organization and the preventive
and reactive measures at Porsche AG.
MEASURES
Porsche AG's compliance program includes various preventive
and reactive measures. Any need for action and preventive
measures are continuously defined based on a systematic risk
analysis that takes the business model, relevant environmental
conditions and the type of business relationships into account.
The main preventive measures are the existence of clear
guidelines, regular training sessions and information for
managers and employees on relevant compliance topics. There
is also confidential compliance advice: Employees can direct all
compliance-related questions to Porsche AG's central
compliance help desk.
The main reactive measures are internal and external reporting
channels and a whistleblower system to receive information on
potential violations of regulations relating to Porsche. This
whistleblower system is regulated in the group guideline of the
same name.
Employees, customers and business partners of Porsche AG, as
well as other third parties, can report suspicions of a breach of
regulations by employees of Porsche AG both to an internal
whistleblower system set up for this purpose and to two
ombudsmen, who are subject to legal confidentiality under
German law. The internal and external contact persons of the
whistleblower system can be reached free of charge and at any
time via various reporting channels and they also accept
anonymous and confidential reports. The Porsche AG
whistleblower system is available in various languages.
Any information received is investigated and any violations
identified are responded to appropriately, for example in
compliance with the applicable data protection, labor and co-
determination laws. The whistleblowers are protected from any
employment related consequences, harassment in the
workplace or other disadvantages from Porsche AG. Appropriate
countermeasures are initiated on a case-by-case basis
depending on the results of the investigation, and individual
misconduct is sanctioned on a case-by-case basis depending
on the results of the investigation.
Porsche AG uses a compliance monitoring system to check
adherence with specific compliance requirements relating to
anti-corruption, anti-trust law and prevention of money
laundering in the specialist departments. In addition to the areas
listed, monitoring primarily focused on the implementation of
risk-mitigating measures in the reporting year. The identified
potential for improvement has been included in the relevant
departments' action plans. The monitoring also provided
overarching findings for the CMS, which are to be considered in
Porsche AG's compliance program for 2024.
In the reporting year 2023, those responsible for compliance
topics conducted numerous communication measures at
Compliance risk analyses, which are carried out in the main
departments of Porsche AG, form the basis for risk assessment
in the compliance areas. In the reporting year, these were also
performed for eight of Porsche AG's other main departments, so
that by the end of 2023 risk analyses were available for 67 of
the 70 relevant main departments of Porsche AG.
Combined Management Report Non-financial statement 2023
↑ ↓ ↑ 0 |||
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Porsche AG. There were also in-person and virtual employee
training sessions as well as digital learning modules at
Porsche AG and selected German subsidiaries. In cooperation
with the HR department, the compliance officers provide
compliance training at Porsche AG. The basis is a subject-
specific plan which uses risk analyses to identify the relevant
target groups and key areas of content. There are mandatory
training formats for managers, junior managers, and new
employees. The compliance officers also organize training for
specific departments and target groups, e.g., on legally required
or current topics, or on request.
In the reporting year, around 3,000 employees at Porsche AG
received compliance training at in-person and virtual events,
and 24,416 participants received compliance training through
digital training modules. The digital Code of Conduct training
module was completed by 16,636 employees from Porsche AG.
This training module covers the directive of the same name and
provides information about the whistleblower system and the
contact details of the compliance help desk. The training also
covers the content of the Avoidance of conflicts of interest and
corruption and Human rights guidelines.
By the end of the reporting year, the rate of training in face-to-
face and virtual events within the target group at Porsche AG
was 84% on average for the defined areas of compliance.
Employees can find further information about compliance-
related training and communications at Porsche AG on the
intranet. Aside from the relevant Group and company guidelines,
the intranet provides information on the compliance culture and
organization, as well as details about points of contact and
reporting channels. This is complemented by videos, flyers, note
cards, and brochures.
RESULTS
Most of the employee inquiries to the compliance help desk
again related to the handling of invitations and gifts. The
number of reports of potential violations was up on the prior-
year level.
Overall, Porsche AG's whistleblower system was responsible for
following up on 83 of 257 submitted reports. The plausibility
check rated 44 of these 83 reports as plausible. Of the 44
plausible reports, 26 were categorized as potentially severe
breaches of the rules and investigated through Porsche AG's
whistleblower system. The focal points of the potential
misconduct were violations of the German Trade Secrets Act
(GeschGehG) and offenses against property (such as fraud and
embezzlement). 16 cases concluded with the identification of a
serious breach of the rules and resulted in sanctions. Eleven
investigations ended without identifying a breach of the rules.
Sanctions following identified rule breaches can range from
raising awareness to termination.
In accordance with the group guideline on the prevention of
money laundering, Porsche AG submitted four suspicious
activity reports to the responsible anti-money laundering
authorities in the reporting year.
251
The central Compliance department has been conducting
compliance monitoring since 2021. Besides interviews with
managers, it involves risk-oriented activities such as spot
checks of transactions that are of relevance in terms of
compliance. The results are compiled in a report that also
describes appropriate action if there is an evident need for
improvement.
Since 2012, Porsche AG's CMS has formed the preventive
framework for all principles, measures and processes not
related to a specific person, which serves to ensure and
implement compliance in six compliance areas. This aims to
prevent breaches of the law and/or policy violations in these
areas or to at least make them significantly more difficult.
The Chief Compliance Officer provides the Executive Board and
the Supervisory Board's Audit Committee with a quarterly report
on the progress of implementing the compliance management
system (CMS) as well as on significant measures and activities.
According to the company compliance management guidelines,
the Executive Board of Porsche AG decides on the local set-up
and further development of the CMS, based on a
recommendation from the Chief Compliance Officer.
Customer Excitement Index
The Porsche AG Group's risk management is organized along
decentralized lines. Alongside the central risk management
function as a method and reporting center, each main
department of Porsche AG and each subsidiary linked to risk
management is represented by risk managers who are
responsible for managing the implementation of and adherence
to baseline standards. The decentralized organizational
structure is designed to emphasize the importance of risk
management in the local operating units and ensure risks are
managed effectively.
%
CEI
GOVERNANCE
2023
2022
2021
46.7
n.a.
n.a.
Corporate governance, corruption and bribery
The Porsche AG Group sees acting and doing business with
integrity as an essential foundation for all business activities.
Corporate governance is critical to the success of a sustainable
and economically efficient transformation. Compliance with
laws and internal guidelines, the consistent rejection of
corruption and bribery, and transparency about the measures
taken play a key role in Porsche AG's sustainability efforts.
Compliance
TARGETS
The Executive Board adopted general compliance targets based
on the general company objectives, the corporate strategy and
Porsche AG's vision and mission. These targets include ensuring
compliant behavior and upholding Porsche AG's reputation and
protecting the company, its bodies and employees from legal
and disciplinary consequences. In addition, Porsche AG wants to
continuously promote a responsible and value-based
compliance culture. The Code of Conduct as well as group
guidelines are in place to help achieve these objectives.
The additional Code of Conduct for Business Partners governs
Porsche AG's expectation that its business partners will comply
with the law as applicable, acknowledge the principles of ethical
conduct and acting sustainably. Both codes of conduct are
available on the intranet and on the Porsche website and
explicitly draw attention to Porsche AG's whistleblower system
which is available to all business partners.
→ Code of Conduct for Business Partners
The Avoidance of conflicts of interest and corruption guideline
provides recommendations for dealing with conflicts of interest
and avoiding corruption. It regulates the admissibility criteria for
the granting and acceptance of benefits such as gifts and
invitations within the scope of business and specifies the
permissible scope here for decision-making and action for
managers and employees. It defines anti-corruption-specific
requirements for implementing the compliance management
system at Porsche AG, including regarding the careful selection
and screening of (potential) business partners.
Porsche AG published the Group Business and Human Rights
Guidelines in 2022. These group guidelines establish an
overarching framework for controlling the duties of care relating
to human rights and the environment under the LKSG.
→ Sustainability, work-related rights and equal treatment and opportunities in the
value chain
There are also guidelines on other compliance issues, including
anti-corruption and prevention of money laundering. Employees
can find information about the guidelines on the intranet.
According to the group guidelines, there are strict criteria for
special vehicle conditions that apply to the granting of
discounts or other benefits in connection with vehicle
transactions to certain stakeholder groups. The adopted
processes create transparency regarding (planned) special
vehicle conditions and compliance with special conditions that
have already been approved.
The Executive Board also adopted the company compliance
management guideline. Porsche AG thus complies with its
entrepreneurial responsibility and meets the statutory obligation
to adhere to statutory requirements as well as internal
guidelines.
DUE DILIGENCE PROCESS
To prevent violations of the rules and support employees in
complying with the law, Porsche AG has set up a compliance
organization made up of the Chief Compliance Officer and those
responsible for specific compliance topics at Porsche AG.
Integrity
TARGETS
The Code of Conduct at Porsche AG summarizes the most
important principles and expectations about acting lawfully,
sustainably and with integrity at Porsche AG. For example,
dealing with conflicts of interest, combating any form of
corruption, appropriate behavior within the group and towards
customers, business partners and public officials as well as
taking responsibility for the environment and society.
Integrity management at Porsche AG has set itself the target of
enshrining integrity in the corporate culture for the long term.
Managers and employees should be able to act in accordance
with ethical principles, with responsibility, conviction and
steadfastlness. Porsche AG wants to strengthen the confidence
of its employees, customers, shareholders and partners. To
promote this value- and attitude-based culture in the best-
possible way, integrity management at Porsche AG is enshrined
within the Human Resources portfolio in the Executive Board in
Employee Development and Corporate Culture.
The RMS and the implementation of and adherence to the
defined baseline standards in the operational areas is monitored
on an ongoing basis by the Porsche AG Group's Internal Audit
department.
Below, the report first describes the methodological changes to
the risk management system in the fiscal year 2023 as well as
how the risk/opportunity management system functions, then it
takes a closer look at the risk strategy and finally explains the
specific situation of risks and opportunities as of December 31,
2023.
Methodological changes to the risk management
system
In the fiscal year 2023, significant changes were made to the
RMS of the Porsche AG Group.
→ Methodological changes to the risk management system in the fiscal year 2023
compared to the prior year
Methodological changes to the risk management system in the fiscal year 2023 compared to the prior year
Topic
Risk inventory
Risk assessment criteria
Risk assessment
Methodology fiscal year 2022
Separate inventory: systemic risks, acute risks,
operational risks
Estimated risk scores for "Financial loss",
"Reputational damage", "Consequences under
criminal law" and a range for "Likelihood of
occurrence"
Subjective risk assessment by risk owner
Categorization of the risk inventory Structuring based on clustering: Supply risks and
opportunities, risks and opportunities from the
Russia-Ukraine conflict, risks and opportunities
from the gas shortage, BCM risks, risks from
regulatory requirements, cost risks and
opportunities from vehicle projects, tax risks and
opportunities, customs risks and opportunities,
data privacy risks
Significant risks in relation to
reporting to the Executive Board
and Supervisory Board of the
Porsche AG Group
Acute risks measured at a financial loss of at least
€5 million; or that may have a negative impact on
reputation in the affected market or region; or
that may have consequences under criminal law
for at least one employee of the local company of
the Porsche AG Group
Organization of the reporting to the Reporting of estimated scores at fiscal year level:
Executive Board and the
current fiscal year and the three subsequent fiscal
years
Supervisory Board of the
Porsche AG Group
Overall risk analysis
Structures and procedures
RISK MANAGEMENT SYSTEM
Long-term success requires behavior to go beyond correct
conduct in line with the laws, regulations and requirements. If
there are no explicit rules or if conflicting objectives arise, one
needs integrity as an inner compass on how to act in the right
way. The topic is also gaining in importance because
increasingly shorter innovation cycles, a changing automotive
industry and a dynamic environment require entrepreneurial
speed more and more frequently.
Regular reporting on risk management aims to support
Porsche AG's Executive Board in identifying developments
jeopardizing the company's ability to continue as a going
concern in a timely manner.
Identified risks and opportunities are already discussed in the
report on expected developments, to the extent that their
occurrence is considered to be probable. The following
explanations about risks and opportunities include potential
future developments or events that may lead to a positive
(opportunity) or negative (risk) deviation from the forecast for
the Porsche AG Group.
Compared to the prior year, there were no adjustments to
opportunity management methodology in the current reporting
year 2023.
Integrity is integrated into Porsche AG's training formats
targeting specific groups. In addition, ongoing internal
communication measures are designed to raise awareness
among employees on the topic.
The topic of culture and integrity was rolled out internationally
at Porsche AG by the Volkswagen Group as part of its
Together4Integrity (T41) program in 2018. The program has
developed long-term measures aimed at strengthening the
culture of integrity. The management of all subsidiaries in the
T41 program, including Porsche AG, are responsible for the local
implementation in accordance with the timeline and milestone
plan. The package of measures and the implementation time
may vary depending on the local circumstances. The central T41
program management was completed in July 2023, upon which
the T41 content was transferred to the line responsibility of the
respective group function. Since then, new companies have
been considered for Porsche Group specifications via its
integration management system.
In addition, Porsche AG also uses results from the employee
survey to derive measures for managing integrity. For example,
a poll about acting with integrity and compliant conduct in the
company organization is part of the "Porsche Puls" employee
survey. Among other things, the survey gives insights into the
integrity culture. The results are then discussed in the
organizational units. This mandatory discussion aims to develop
measures to improve cooperation, management and further
development for the long term. If the integrity-related question
falls below a defined threshold, this triggers subsequent follow-
up processes. Training formats on the topic of integrity or with
content on integrity are also available.
MEASURES
Integrity issues are already addressed during the recruiting
process. There is also a particular focus on integrity during the
development path to a manager covered by collectively
bargained wage agreements as well as to and within
management positions. The value attached to integrity can also
be seen in the semiannual reporting of the implementation
standards to the Compliance Council, in the ad hoc reporting to
the Executive Board as well as in the annual integrity report in
the Supervisory Board.
As part of its opportunity management, the Porsche AG Group
identifies and implements short, medium and long-term
opportunities by systematically determining, assessing and
operationalizing them and ultimately converting them into
measurable revenue, cost and liquidity potential.
The interdisciplinary multiplier network covering the brand,
culture, and integrity provides Porsche AG employees with a
platform to share their experience, ideas, and presentations. It
helps the ambassadors embed the topic of integrity within the
departments. Employees can find bundled information on
integrity on the intranet. Managers have access to a toolbox in
their own special integrity section and apply this in day-to-day
operations. It features self-reflection tools, dialog formats, and
other information and ideas relating to integrity. This way, as
role models, managers can hold their own workshops to hone
their understanding of integrity and, working with their
employees, define and implement measures designed to
improve integrity.
RESULTS
At the time of transferring the T41 content to the line
responsibility of the respective group function in July 2023, the
T41 measures relating to culture and integrity were virtually
completed. The Internal Audit department also conducted a
final review of the measures completed by Porsche AG and
found their implementation to be plausible.
Integrity is firmly entrenched in the personnel processes on
onboarding, recruiting, personnel development, remuneration
and disciplinary actions. Minimum standards are determined in
the group guideline on HR compliance.
Since 2022, the competence model, focusing on the skills
needed to make decisions with integrity, has been used in
training for newly appointed managers and newly hired
employees of Porsche AG and the selected national subsidiaries,
as well as in training sessions on integrity for managers at
Porsche AG covered by collectively bargained wage agreements.
It was extended to other target groups in 2023.
In the "Porsche Puls" employee survey for 2023, the question
about integrity was given an index score of 74 out of 100.
Around 19,000 employees at Porsche AG took part in the
survey in the reporting year.
A voluntary digital learning module on the topics of brand,
culture and integrity was introduced in the reporting year to
convey the content and relevance of the topics for employees'
day-to-day work and to raise awareness of them.
DUE DILIGENCE PROCESS
The Porsche AG Group has implemented a comprehensive risk
management system (RMS). This system is designed to identify
and appropriately manage risks with respect to the achievement
of strategic and operational goals as well as complying with
legal and internal requirements. This is intended to avert the
threat of loss for the Porsche AG Group and to identify at an
early stage any threat of any risks that might jeopardize its
continued existence.
Promptly identifying the risks and opportunities arising from
operating activities and taking a forward-looking approach to
managing them is crucial to the long-term success of the
Porsche AG Group. A responsible approach in dealing with
corporate risks to achieve our objectives is just as important as
duly identifying opportunities as a way of ensuring
competitiveness. For this purpose, the Porsche AG Group has
management systems in place that are embedded in a
comprehensive risk and opportunities management system.
252
REPORT ON RISKS AND OPPORTUNITIES
↑↓ ↑ 0 |||
GENERAL PRINCIPLES OF RISK AND
OPPORTUNITY MANAGEMENT
254
253
Combined Management Report Non-financial statement 2023
The Porsche AG Code of Conduct not only emphasizes the
importance of honest and ethical conduct and acting with
integrity on the part of everyone, but also explicitly highlights
the role model function of members of the Executive Board and
managers. Integrity is a core value in the Porsche Code - the
company's leadership model - and provides a solid basis for the
organization.
599
Fair value changes recognized in other comprehensive income (OCI II)
-181
-982
Transferred to profit or loss or inventories (OCI II)
564
Cash flow hedges (OCI II), before tax
Cash flow hedges (OCI II), before tax
383
-667
Deferred taxes relating to cash flow hedges (OCI II)
-116
202
700
315
Cash flow hedges (OCI I), net of tax
892
5.67
-40
-291
267
Cash flow hedges (OCI I), before tax
1,008
852
Basic/diluted earnings per ordinary share in €
Basic/diluted earnings per preferred share in €
12
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
12
22
5.66
5.44
Deferred taxes relating to cash flow hedges (OCI I)
-308
-253
5.45
-464
6
Items that may be reclassified subsequently to profit or loss
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
2
As from the first quarter of 2023, deferred taxes are reported separately. The prior-year figures have been adjusted to reflect this change.
Consolidated Financial Statements Consolidated statement of comprehensive income
277
↑↓ ↑ |||
278
0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
€ million
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Leased assets
1,299
Equity-accounted investments
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT AS OF DECEMBER 31, 2023
thereof profit attributable to non-controlling interests
6,908
5,628
0
0
750
366
Other comprehensive income, before tax
Deferred taxes relating to other comprehensive income
Other comprehensive income, net of tax
Total comprehensive income
thereof profit attributable to shareholders
775
2,665
-305
-719
471
1,947
5,627
6,914
Fair value valuation of debt instruments that may be reclassified to profit or loss
Share of other comprehensive income of equity-accounted investments that
may be reclassified subsequently to profit or loss, net of tax
Fair value changes recognized in other comprehensive income (OCI I)
Transferred to profit or loss or inventories (OCI I)
-40
25
461
Interest expenses
8
-184
-105
Fair value valuation of equity instruments that will not be reclassified to profit or loss,
net of tax
Other financial result
264
9
Share of other comprehensive income of equity-accounted investments
that will not be reclassified to profit or loss, net of tax
Financial result
91
308
Profit before tax
Income tax income/expense
Current
19
Deferred
8
1
Other equity investments
6
-1,162
-1,662
Operating profit
7,284
6,772
Interest income'
Share of profit or loss of equity-accounted investments
-9
-7
Pension plan remeasurements recognized in other comprehensive income, net of tax
Fair value valuation of equity instruments that will not be reclassified to profit or loss
Fair value valuation of equity instruments that will not be reclassified to profit or loss, before tax²
Deferred taxes relating to fair value valuation of equity instruments that will not be reclassified to
profit or loss
-277
1,559
-3
22
7
Profit after tax
thereof profit attributable to shareholders
thereof profit attributable to non-controlling interests
0
-231
-185
Exchange differences on translating foreign operations, before tax
-217
231
5,157
Transferred to profit or loss
4,967
5,157
4,960
11
0
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax
Hedging
-217
231
25
-1,929
-1,987
231
Profit transferred to Porsche Holding Stuttgart GmbH
7,375
7,081
10
-2,218
-2,114
Items that will not be reclassified to profit or loss
Foreign exchange differences
Unrealized currency translation gains/losses
-2
22
0
1
-279
1,582
22
-217
-3,979
Financial services receivables
1,826
Other receivables
23
Other operating expenses
1,795
24
5,820
3,719
Other financial liabilities
87
Other liabilities
Other provisions
Financial liabilities
Trade payables
30
364
872
31
Current liabilities
Provisions for taxes
737
235
1,079
32
2,010
1,607
26222222
5,947
5,504
Financial liabilities
728
28
6,016
1,449
1,268
1,669
1,538
2,010
5,484
6,537
734
13,567
16,579
31
1,795
1,908
Tax payables
32
31
64
Other liabilities
Liabilities associated with assets held for sale
12
Total equity and liabilities
50,447
47,642
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Consolidated Financial Statements Consolidated statement of financial position
279
5
47,642
50,447
5,287
32
128
167
27
3,007
2,778
28
3,880
3,464
29
3,490
2,899
6
31
Other financial liabilities
30
1,231
Deferred tax liabilities
Other financial assets
20,154
1,131
30,407
27,488
14,35
15,35
233222222
13
8,554
Dec. 31, 2022¹
7,473
Subscribed capital
25
9,394
8,924
Capital reserves
21,668
911
3,822
17,035
911
3,822
Equity and liabilities
Equity
4,190
Dec. 31, 2023
€ million
Deferred tax assets
Current assets
Inventories
Trade receivables
Financial services receivables
Other financial assets
Other receivables
Note
Tax receivables
Cash and cash equivalents'
Assets held for sale
Total assets
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Note
Dec. 31, 2023
Dec. 31, 2022'
Securities and time deposits"
3,854
Retained earnings
16,305
753
Non-current liabilities
15,211
14,027
21
78
100
1,422
Provisions for pensions and similar obligations
4,315
3,668
627
742
Other provisions
27
1,249
26
20
8
1
12,395
16
651
623
Other reserves
629
-101
16
814
636
Equity attributable to Porsche AG shareholders
21,667
17,027
19
4,676
4,382
Non-controlling interests
20,040
1,894
For our sales forecast for 2024, the company expects fully
electric vehicles (automotive BEV share) to account for
13% and 15% of the total number of new vehicles delivered to
customers, marking an increase compared to the reporting year.
5
Combined Management Report Report on risks and opportunities
265
266
↑↓ ↑ |||
Compliance with legal or regulatory requirements (such as the
GDPR) is another area in which risks may arise. This applies in
particular to gray areas, where Porsche AG or the companies in
which it holds direct or indirect interests may make
interpretations that differ from those of the competent
authorities.
In connection with their business activities, Porsche AG Group
companies engage in constant dialog with regulatory agencies,
including the Kraftfahrt-Bundesamt (KBA-German Federal
Motor Transport Authority) as type approval and market
surveillance authorities. It is not possible to predict with
assurance how government regulators will assess certain issues
of fact and law in a particular situation. For this reason, the
possibility that certain vehicle characteristics and/or type
approval aspects may in particular ultimately be deemed
deficient or impermissible cannot be ruled out. This is also
fundamentally a question of the regulatory agency's specific
evaluation in a concrete situation.
Risks may also result from actions for infringement of
intellectual property, including infringement of patents, brands,
or other third-party rights, particularly in Germany and the USA.
If the Porsche AG Group is alleged or determined to have
violated third-party intellectual property rights, it may for
instance have to pay damages, modify manufacturing
processes, or redesign products, and may be barred from selling
certain products; this may result in delivery and production
restrictions or interruptions.
In the course of their operating activities, Porsche AG and the
companies in which it holds direct or indirect interests are
involved in a large number of legal disputes and official
proceedings, both in Germany and abroad. Among others, these
legal disputes and proceedings relate to or are connected with
employees, authorities, services, dealers, investors, customers,
products or other contractual partners. They may lead to
payments such as fines as well as other obligations and
consequences for the companies involved. In particular,
substantial compensation or punitive damages may have to be
paid and cost-intensive measures may be necessary. In this
context, specific estimation of the objectively likely
consequences is often possible only to a very limited extent, if
at all.
Legal risks may also arise due to the criminal actions of
individuals, which even the best compliance management
system can never fully rule out.
→ Notes to the consolidated financial statements-40. Litigation
↑↓ ↑ ||
New requirements under tax law inside and outside Germany
require the constant adjustment of the relevant declaration
processes. Risks of double taxation from the cross-border
supply of intragroup goods and services are regularly reduced or
eliminated using advanced pricing agreements or other bilateral
procedures. Tax risks from tax field audits and their impact on
the consolidated financial statements are closely monitored on
an ongoing basis. Provisions or liabilities were recognized for
potential future payments of tax arrears and for ancillary tax
payments arising in this connection. These risks are monitored
and managed over the long term by systematically enhancing
the Tax CMS that has been implemented.
Should the assessment of tax matters, for example due to a
change in a court decision be favorable to the taxpayer and
therefore advantageous for the Porsche AG Group, this may also
result in opportunities for the earnings of the Porsche AG Group
in terms of the provisions already recognized.
CUSTOMS RISKS AND OPPORTUNITIES
Based on the free trade agreements that the EU has concluded
with various countries, Porsche vehicles can be imported to
these countries at reduced rates of customs duties or duty-free,
subject to compliance with the local content requirements. New
and more stringent local content requirements necessitate an
ongoing adjustment of the calculation processes. If local
content requirements are not met, the standard rate of customs
duty must be applied when importing vehicles.
Changes in trade policy frameworks may also give rise to
positive earnings effects for the Porsche AG Group. Potential for
lower cost of goods sold or also the possibility to offer products
and services at lower prices is offered by a possible removal of
tariff barriers, import restrictions or a reduction of direct excise
duties.
Further information can be found in the comments on litigation
in the notes to the consolidated financial statements.
NON-FINANCIAL RISKS
LITIGATION
In addition, the Porsche AG Group faces operating risks in the
area of research and development costs. In particular, there are
cost risks resulting from the possible non-compliance with
research and development budgets. For the Porsche AG Group,
this risk can manifest itself in a reprioritization or change in the
development and product portfolio.
Within the Porsche AG Group, this risk is managed through early
and systematic identification of weak points in the start of
production of a vehicle and close monitoring of the supplier
relationship.
The supply of semiconductors is continuously subject to high
risks, which is why the supply situation remained tense in 2023.
Potential risks for the Porsche AG Group could manifest
themselves in the form of production interruptions and thus also
lost sales. However, by arranging long-term contracts at an
early stage, the supply situation has been increasingly stabilized.
In addition, as in the past, additional cost demands from
suppliers for various reasons led to cost risks in respect of
investments and direct material costs. The reasons for this
include, for example, increased raw materials prices and other
cost increases in connection with manufacturing. Closely
monitoring these within the projects and taking
countermeasures at an early stage, e.g., by negotiating on the
part of procurement, reduces the supply risks.
The Porsche AG Group is also exposed to significant risks in the
area of battery cell production in connection with the supply of
parts. Risk factors include in particular the increasing demand
for battery cells, the dynamic technology environment and the
service life of battery cells. In this context, it is particularly
important for the Porsche AG Group that risks may arise with
regard to the supply of parts as a result of unstable production
processes at battery cell suppliers. Generally speaking, this can
result in the start of production of vehicles being scaled-back,
delayed or postponed. There is also a risk that technical
specifications for the battery cell will be met late or not at all. As
a result, the Porsche AG Group is faced with deadline, quality
and cost risks.
However, opportunities could arise should, contrary to current
expectations, the supply situation and its repercussions develop
positively or things return to normality earlier than anticipated.
Significant opportunities may arise from potential additional
synergies with new vehicle architectures within the Porsche AG
Group but also in association with the Volkswagen Group as well
as from technological innovations. These synergy and
innovation effects pertain to Development, Procurement and
Production in particular. Furthermore, opportunities from
product cost and process optimization program can contribute
to the realization of earnings potential in this context.
GEOPOLITICS
In addition to the significant risks, the Porsche AG Group is
exposed to various risks from legal disputes, taxes and customs
duties as well as non-financial risks due to its global business
activities.
The conflicts in the Middle East may have a direct and indirect
negative impact on the business activities of the Porsche AG
Group. This can include temporary disruptions to important sea
routes, which can have an impact on supply chains, for example.
Rising energy prices may also lead to rising inflation rates.
Demand shocks resulting from a possible global recession could
also affect the business activities of the Porsche AG Group if the
conflict were to escalate.
If, contrary to previous planning assumptions and forecasts, the
current geopolitical tensions in the aforementioned regions
weaken or dissipate, this could lead to a reduction in the
negative effects on the global economy-including higher
inflation rates, increased interest rates, but also the sales
situation in general and the challenges in the relevant markets-
and possibly even result in opportunities on the sales and cost
side for the Porsche AG Group.
Sales risks and opportunities
The sales markets of the USA, China, Europe and the rest of the
world play a key role for the Porsche AG Group. There is
currently a risk of a further decline in demand within the sales
risks and opportunities category due to the dynamic market and
competitive situation in China. A deterioration in the overall
economic situation in China, e.g., as a result of a real estate
crisis and the associated loss of purchasing power, increasing
competition in the Chinese market or localization efforts, as well
as structural changes in the automotive sector are evident and
are having an impact on sales expectations in the market. The
market situation in China is constantly monitored and taken into
account in sales planning.
If, contrary to expectations, the sales situation develops more
positively, this may also create opportunities for additional sales
potential. This should be seen in particular against the backdrop
of a balanced regional distribution, with an increased focus on
new markets such as the ASEAN region.
In addition, the expansion of market shares due to a broad and
rejuvenated product portfolio and the growth of existing and the
expansion of new business fields could have an advantageous
impact. Moreover, the strength of the brand in conjunction with
the innovative strength can also support the realization of unit
prices and the associated tapping of earnings potential.
Operational risks and opportunities
In the "Operational risks and opportunities" risk category, IT
risks play a significant role for the Porsche AG Group in the area
of business continuity management. The company's business
processes are heavily dependent on information technology,
which represents a significant risk factor. There is a risk of
default especially in production due to unforeseen events such
as a cyber attack. There is a significant risk that the Porsche AG
Group may be exposed to data encryption or data protection
risks. Critical IT resources and applications are safeguarded via
the business continuity management system.
Possible risks may also arise from the trade conflict between
China and the USA and tensions in Asia. As a result, the
Porsche AG Group is faced with possible sales losses and a
dependence on Asian suppliers or sub-suppliers, primarily due
to the high proportion of revenue in the affected regions. In
addition, conflicting sanction laws may exacerbate the risk
situation.
Pursuant to section 289c HGB, a review is carried out in the
reporting process of opportunities and risks that have an impact
on non-financial aspects set out in the law. Significant
opportunities and risks within the meaning of this law include
those associated with the Porsche AG Group's business
activities, business relationships, products and services and
which are very likely to have serious consequences for the non-
financial aspects pursuant to the German Act to Implement the
CSR Directive (CSR-RUG). In the reporting year, no significant
non-financial risks were identified in the course of the review
based on the risk inventory reported in the fiscal year 2023.
Personnel risks and opportunities
No significant risks were identified in the "Personnel risks and
opportunities" risk category in the current fiscal year 2023.
EQUITY AND BOND PRICE RISKS
The special funds launched using surplus liquidity are exposed
in particular to equity and bond price risk that may arise from
fluctuations in quoted market prices, stock exchange indices
and market interest rates. The risks to which the special funds
are exposed are generally countered by the Porsche AG Group
by ensuring a broad diversification across a range of products,
issuers and regional markets when making investment
decisions, as stipulated in the investment policy. The risk
management systems in place are partially based on a minimum
value threshold and, if the market situation is appropriate,
exchange rate hedges are entered into.
COMMODITY RISKS
There are also risks relating to raw materials in the automotive
segment in respect of the development of prices, among other
things. Possible risks from the development of prices of raw
materials are analyzed on an ongoing basis in order to be able to
act swiftly to any changes on the market. Commodity price risks
are partly hedged through the use of hedging instruments for a
period of several years. Averaging swaps are used as hedging
instruments. The volume of hedges is determined on the basis
of the planned commodity exposure in the respective
procurement contracts. As part of the management of
commodity price risks, price hedges were concluded in 2023
for the commodities aluminum, copper, nickel, cobalt and
lithium hydroxide.
RESIDUAL VALUE RISKS
The residual value risk inherent in the leasing business in the
financial services division results from a negative deviation
between the residual value calculated when the agreement is
concluded and the market value of the leased vehicle when it is
sold following expiry of the agreed lease period. In some
markets, such as North America and to some extent in Germany,
this residual value risk is borne by Porsche financial services
companies. The market price of used vehicles constitutes the
key risk variable in this context. Operational risk management is
provided via ongoing monitoring of the development of used
vehicle prices by means of data available outside the company,
among others. Residual value forecasts are used to check the
appropriateness of the loss allowance and the residual value risk
potential. The effects from a change in used vehicle prices are
quantified using a sensitivity analysis.
Credit and default risks
Interest rate risk in the financial services division mainly results
from changes in market interest rates, primarily for medium-
and long-term floating-rate liabilities and from non-maturity-
matched refinancing. Interest rate hedges are used to limit
these risks.
The credit and default risk arising from financial assets involves
the risk of default by counterparties, and therefore comprises at
a maximum the amount of the claims against the respective
counterparty.
In addition, default risks in the area of receivables are reduced
using intensive receivables management and actively carrying
out corresponding dunning processes. The maximum credit and
default risk is also reduced by collateral held. Vehicles, collateral
assignments, guarantees and cash are used as collateral.
Channeling excess liquidity into investments and entering into
derivatives contracts also exposes the group to counterparty
risks. Partial or complete default by a counterparty, for example
in respect of their obligation to repay interest and principal,
would have a negative impact on the Porsche AG Group's net
assets, financial position and results of operations. In order to
manage these risks, the Porsche AG Group has set out
guidelines to ensure that transactions are concluded only in
approved financial instruments, only with approved
counterparties and only on the admissible scale.
Liquidity risks
The Porsche AG Group depends on being able to sufficiently
cover its financing needs. There is a possible liquidity risk in not
being able to ensure the required capital by raising funds or
financing this at appropriate conditions, which in turn could
have a significant negative impact on the Porsche AG Group's
net assets, financial position and results of operations. The
solvency and liquidity of the Porsche AG Group are continuously
secured by rolling liquidity planning, a cash liquidity reserve,
guaranteed credit lines and by taking out loans. A revolving
credit facility of €2.5 billion has been agreed with a syndicate of
21 banks to further secure the liquidity position. In certain
countries (e.g., China), the Porsche AG Group can only use local
cash funds for cross-border transactions pursuant to exchange
controls. There are no other material restrictions.
The Porsche AG Group mainly generates liquidity through its
business operations, external financing and the securitization of
receivables. The funds are chiefly used to finance net working
capital and capital expenditure and to cover the finance
requirements of the leasing and sales financing business.
Operational liquidity management uses cash pools in which
material cash and cash equivalents are pooled on a daily basis.
There is a cash pool in place with the Volkswagen Group. This
enables liquidity surpluses and shortfalls to be controlled in line
with requirements. The maturities of financial assets and
financial liabilities as well as forecasts of cash flows from
operating activities are included in short and medium-term
liquidity management.
SUMMARY
The overall risk and opportunity situation for the Porsche AG
Group is the sum of the aforementioned categories of risks and
opportunities. Based on the information and assessments
currently available, a development jeopardizing the group's
ability to continue as a going concern is sufficiently improbable
in the fiscal year 2024.
In the Porsche AG Group, the credit and default risk from
financial services contracts is borne in certain markets by the
local Porsche financial services companies. These risks are
typically managed using a rating and scoring system and there
are policies that set out the decision-making rules and
competencies when assessing applications locally. The portfolio
is measured on an ongoing basis and taken into account when
recognizing loss allowances (IFRS 9).
Interest rate risk in the automotive segment results from
changes in market interest rates, primarily for medium- and
long-term interest-bearing receivables, liabilities and provisions.
Floating-rate items are included in cash flow hedges and some
are hedged by means of interest rate swaps.
INTEREST RATE RISKS
↑↓ ↑ 0 |||
FINANCIAL RISK MANAGEMENT AND METHODS
AS WELL AS OPPORTUNITIES
Due to the international activities in the automotive and
financial services segments, financial risks arise that affect the
net assets, financial position and results of operations of the
Porsche AG Group. These risks are broken down into market
risks, credit and default risks and liquidity risks. The risks are
regularly monitored, reported and centrally managed using
financial instruments. The primary aim of using financial
instruments is to limit the financial risk exposures in order to
ensure the Porsche AG Group's continuing existence and its
earnings power.
The principles and responsibilities for managing and controlling
the risks that could arise from these financial instruments are
defined by the Executive Board and monitored by the
Supervisory Board. Internal guidelines exist within the
Porsche AG Group that clearly define the risk management and
control processes. These guidelines regulate, among other
things, the use of financial instruments or derivatives and the
requisite control procedures, such as a clear segregation of
functions between trading and settlement. In addition, it is also
stipulated that financial transactions should always be based
around the needs of the underlying transaction. Consequently,
transactions are not concluded for speculative purposes. The
treasury department identifies, analyzes and monitors risks
group-wide. The underlying guidelines and the supporting
systems are checked regularly and brought into line with current
market and product developments.
Derivative financial instruments are mainly used to control
currency, interest rate and commodity price risks. The
counterparties for the hedges are Volkswagen AG and major
national and international financial institutions. Cooperation is
subject to uniform regulations and continuous monitoring.
Alongside counterparty credit risks, in particular accounting
risks relating to the financial instruments entered into for
hedging purposes also have to be analyzed. The risk of effects
on the presentation of results of operations in the income
statement is limited by means of hedge accounting.
More information is provided in the notes to the consolidated
financial statements on the hedging policy, hedging guidelines,
default and liquidity risks as well as the quantification of the
aforementioned hedging activities and the market risks within
the meaning of IFRS 7.
→ Notes to the consolidated financial statements-36. Financial risk management
and financial instruments
Market price risks and opportunities
In the course of its general business activities, the Porsche AG
Group is exposed to foreign currency and interest rate risks as
well as risks relating to shares, bonds, commodity prices and
residual value. It is company policy to exclude or limit these
risks where possible by entering into hedging transactions.
Should, contrary to current planning and forecast assumptions,
market prices develop positively, this may also result in
opportunities for the Porsche AG Group.
CURRENCY RISKS
The currency risk in the automotive segment results in
particular from transactions as part of operating activities that
do not take place in the functional currency of the respective
group company. Currency risks are partly hedged through the
use of exchange rate hedging instruments for a period of up to
five years. The main hedging instruments used are forward
exchange transactions and currency options. The volume of
exchange rate hedges is determined on the basis of the planned
sales figures in the respective foreign currency, taking into
account procurement volumes.
In 2023, hedges were entered into in the following currencies
as part of currency risk management: Australian dollar (AUD),
Brazilian real (BRL), British pound sterling (GBP), Canadian
dollar (CAD), Chinese renminbi (CNY), Hong Kong dollar (HKD),
Indian rupee (INR), Japanese yen (JPY), Mexican peso (MXN),
Norwegian krone (NOK), Polish zloty (PLN), Singapore dollar
(SGD), South Korean won (KRW), Swedish krona (SEK), Swiss
franc (CHF), Taiwan dollar (TWD), and US dollar (USD).
There is no material currency risk in the financial services
division, as refinancing is carried out in the currency of the
respective assets.
Combined Management Report Report on risks and opportunities
267
268
Porsche AG Group is exposed to the risk of the start of
production of vehicles being scaled-back, delayed or postponed
due to quality or scheduling problems in the supply chain.
Significant risks may also arise from the provision of software
for products and connectivity services for the Porsche AG
Group. Risk factors here are the timely provision of the software
in the required quality. As a result, project milestones are
missed or delayed, impacting deadlines and/or flattening the
ramp-up curve. Additional cost claims from suppliers and
competitive disadvantages are also conceivable if demand
requirements are not met as a result of quality problems.
Combined Management Report Report on risks and opportunities
SUPPLY CHAIN PROBLEMS
Supply risks and opportunities
↑↓ ↑ |||
||| ơ LT 2
RISK AND OPPORTUNITY SITUATION
AS OF DECEMBER 31, 2023
The following section presents the risk and opportunity
situation as of December 31, 2023. It is presented by risk
category, with financial risks being presented in a separate
section → Financial risk management and methods as well as opportunities.
In principle, the risk categories that have already been
presented and which will be examined in more detail below also
hold opportunities. Such opportunities may arise for the
Porsche AG Group if the actual effects are better than the
underlying planning assumptions or anticipated forecasts, or if
additional positive effects can or do arise in the aforementioned
categories-in relation to the value chain.
The macroeconomic environment represents the framework
conditions for the risks and opportunities listed in the following
categories and is included as an assumption in the assessment
of these risks and opportunities.
261
The macroeconomic conditions are characterized by
extraordinary uncertainties and influence the business
development of the Porsche AG Group. Uncertainties result in
particular from commercial and geopolitical events worldwide.
In addition, there are increasing environmental challenges that
affect individual countries and regions to varying degrees. High
private- and public-sector debt is clouding the outlook for
growth and may likewise cause markets to respond with
uncertainty. Demographic change may also inhibit growth.
Turbulence on the financial, energy and commodities markets, a
more restrictive monetary policy with persistently high inflation
and the associated decline in purchasing power, sharply rising
interest rates and waning economic performance also have an
impact on the business activities of the Porsche AG Group.
One aspect of transitory climate risks that may affect the
business activities of the Porsche AG Group is the short-term
tightening of climate laws and regulations in response to
climate change. On the one hand, stricter regulations may give
rise to risks on the supplier side, which may be reflected as cost
risks in the Porsche AG Group. Risks may also arise for the
Porsche AG Group on the sales side as a result of strict CO2
regulations, among other things.
In addition to transitory climate risks, the consequences of
climate change are also significant for the Porsche AG Group.
Extreme weather events such as heavy rain or heat stress are
significant for the Porsche AG Group and can result in financial
losses as well as interruptions to operations.
In addition, the entire automotive industry is undergoing a
transformation process towards electromobility. For the
Porsche AG Group, the electrification strategy not only offers
opportunities and learning effects, but also poses potential
risks. For the Porsche AG Group, transformation risks may arise
in particular from a delayed transformation of the sales markets
towards electromobility. These risks are countered by a flexible
product policy which, in addition to the strategy focused on BEV
vehicles, also includes PHEV and ICE models.
In the area of production, but also in the supply chain, risks arise
from the conversion of the processes and systems required for
electromobility and the availability of certain raw materials. In
addition, the Porsche AG Group is faced with deadline risks that
may arise from delays in the deployment of new electromobility
technologies. There are also challenges in the area of the fast-
charging infrastructure required for electromobility.
Automotive markets around the world are exposed to risks from
government intervention such as tax increases, which curb.
private consumption, and from restrictions on trade and
protectionist tendencies such as tariffs and sanctions.
Furthermore, there are future risks from the sale of electrified
vehicles if the minimum requirements for local content under
free trade agreements cannot be achieved. Sales incentives may
lead to shifts in the timing of demand.
Furthermore, government regulations for the protection of
human rights are constantly increasing the demands on
companies to create greater transparency in their international
supply chains, including bans on importing products that are
suspected of being linked to human rights violations, either
themselves or with regard to the parts they contain. Despite
every effort by companies, there is still a risk that complete
transparency cannot be achieved and that the import of
products from or into individual markets may be restricted in
individual cases. This poses a general risk to stable distribution
chains worldwide.
The key risks by risk category for the Porsche AG Group as of
December 31, 2023 are presented below. The risk categories
In addition, advancing climate change is putting the automotive
industry under pressure worldwide. In accordance with the
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), climate-related risks are
considered in the Porsche AG Group from two perspectives:
firstly, the effects of physical climate change (such as extreme
weather events) and secondly, the transitory risks arising from
the climate-friendly restructuring of the economy (such as the
regulation of CO2 fleet emissions).
are sorted by their significance for the Porsche AG Group.
Within each risk category, the main risks are listed in
descending order of financial relevance.
Combined Management Report Report on risks and opportunities
For the documentation of the group-wide RMS and exercising
the monitoring function, there is an IT system that reflects all of
the risk management processes. It supports the main
departments of Porsche AG as well as the subsidiaries
integrated in the risk management system when executing risk
management processes and compliance with baseline
standards defined in risk management.
Financial risks result from possible deviations from plan on
currency, interest rate and other financial markets as well as
from refinancing risks and liquidity risks. Financial risks are
updated by the risk owner on a quarterly basis.
→ Financial risk management and methods as well as opportunities
Personnel risks arise from possible deviations from the plan with
regard to the availability, adjustment, management and
motivation of personnel. The demand for highly qualified
employees is increasing worldwide. Risks in this category relate
to the issue of finding, developing, retaining and replacing
sufficiently qualified employees in management and at all levels.
Risks from cooperation with trade unions, implementation and
compliance with laws also belong in this risk category. These
risks are updated at least every six months.
Operational risks result from the unsuitability or failure of
internal processes, people or systems or from external events.
Likewise, compliance risks, risks from legal disputes, taxes or
customs duties as well as non-financial risks are included in the
category of operational risks. The increasing digitalization of
business processes and products entails risks such as cyber
attacks and data protection risks, which are classified as
operational risks. Operational risks are updated at least once a
year.
The risk categories are set down in the risk strategy. The risk
strategy describes how risks arising from the business strategy
are dealt with. This also includes dividing the business model up
into categories suitable for the Porsche AG Group.
In addition, the risk strategy also includes four overarching
pillars of managing risks.
- Risk acceptance: The risk is accepted as identified.
Risk avoidance: The underlying situation is not entered into
in order to eliminate the risk.
The risk-bearing capacity calculation showed that the
occurrence of a development jeopardizing the continued
existence of the group was sufficiently improbable in the fiscal
year 2023.
Risk reduction: The probability and/or impact of the risk is
reduced.
Risks can lead, both individually, but primarily when acting
together in an unfavorable manner, to a situation that could
jeopardize the company's ability to continue as a going concern.
In order for the interplay of individual risks to be adequately
taken into account, central risk management aggregates the
significant individual risks into an overarching overall risk. Risk
aggregation is carried out using IT-supported simulations
(Monte Carlo simulation).
RISK-BEARING CAPACITY
The overall risk is aggregated from the significant individual
risks and compared with the available risk capital in the
calculation of risk-bearing capacity. The overall risk is reported
on a quarterly basis using the value-at-risk at a confidence level
of 99% for the current fiscal year and the three subsequent
fiscal years.
The overall risk contains significant risks with a cumulative
financial net potential greater than €100 million over the period
under review. Risks with a possible financial net potential of up
to €100 million are included in the overall risk situation as a
lump sum.
The RMS's risk-bearing capacity concept is based on the over-
indebtedness perspective and the insolvency perspective. The
overall risk is evaluated in relation to its potential negative
impact on the operating result (EBIT) and cash flow. This is then
compared with the available risk capital: The potential losses in
the operating result are compared with equity and the potential
negative cash flows with gross liquidity. In this way, the
company's risk-bearing capacity is determined.
In order to ensure that developments jeopardizing the group's
ability to continue as a going concern are recognized at an early
stage, the risk-bearing capacity concept contains limits and the
likelihood of these being exceeded is incorporated into
reporting. The maximum tolerable amount of the overall risk can
be derived using these limits (risk appetite).
Risk transfer: Transferring a risk onto the balance sheet of
another company.
Overview of risks in the Porsche AG Group
Risk categories
Strategic risks
Possible potential and therefore opportunities in the supply
chain can arise through strategic value chain management and
the further expansion or creation of new strategic partnerships.
GEOPOLITICAL THREATS
The future success of the Porsche AG Group will be influenced
by the geopolitical environment, among other factors. Tensions
in the context of international relations and conflicts can lead to
various forms of trade barriers for the Porsche AG Group. These
can be specific security policy conflicts or country-specific
regulatory requirements or various trade agreements. As a result
of these tensions, the Porsche AG Group is facing, among other
things, sales losses in the affected markets, disruptions to the
supply chain or stricter regulations and customs duties.
Geopolitical threats are identified and monitored at an early
stage as part of established projects, regular monitoring and
preventive crisis management.
GLOBAL ECONOMIC AND FINANCIAL CRISES
Our global economic and financial environment is becoming
increasingly tense. In addition, potential recessions are leading
to lower expectations for the economic outlook. This may lead
to an increasing number of supplier insolvencies, rising capital
costs or a negative impact on share prices as well as negative
effects on revenue for the Porsche AG Group. Where sufficiently
foreseeable, these framework conditions are taken into account
in the corporate planning, including scenario analyses.
INCREASING REGULATORY ENVIRONMENT
An increasingly volatile global regulatory environment confronts
the Porsche AG Group. In particular, the Porsche AG Group faces
strict emissions and safety standards, ever more stringent
environmental and sustainability requirements, such as
substance and material bans/restrictions, taxonomy
requirements, recycling quotas or data governance laws. Laws
relating to export and import controls also affect the company
in this context.
The risk is closely monitored and managed through various
monitoring activities and projects, such as Al-supported supply
chain monitoring, projects to increase supply chain
transparency and preventive supplier risk management.
The tensions within this environment can lead to significantly
higher costs in the Porsche AG Group for compliance within the
supply chain, procurement, product development, the
production and sale of vehicles and their spare parts or to rising
direct material costs. The necessary global legal monitoring is
also becoming more complex and harbors the risk of non-
compliance, fines and even possible loss of sales.
262
Combined Management Report Report on risks and opportunities
263
264
↑↓ ↑ 0 |||
The Porsche AG Group meets the challenges of the increasing
regulatory environment by continuously carrying out
comprehensive regulatory monitoring, implementing projects
and measures to monitor international and country-specific
standards and regulations and constantly reviewing their
progress.
In the latter areas, opportunities that could have a lasting
positive impact on the Porsche AG Group's results of operations
may arise if the assumptions made develop more positively than
assumed.
The ban on the authorization of per- and polyfluoroalkyl
substances (PFAS) is currently highly relevant. As part of the EU
Green Deal in the area of Chemicals Strategy for Sustainability,
the EU Commission has drafted legislation to ban the PFAS
substance group. This includes a complete ban on the
placement of PFAS in the EU from 2026. The potential ban
affects various areas within the Porsche AG Group and entails
cost and sales risks.
The Porsche AG Group is dependent on a complex supply chain.
Disruptions to the supply chain have in the past shown that it is
heavily dependent on global and geopolitical stability. Possible
consequences of disruptions to the supply chain include losses
in profit or a reduction in customer satisfaction.
SUPPLY CHAIN DEPENDENCY
In the context of strategic risks and opportunities, the
Porsche AG Group considers issues that could have a long-term
impact on the orientation of the company. The four main
strategic risks of the Porsche AG Group are explained below.
Supply risks
Financial risks
Sales risks
Operational risks
Personnel risks
Classification of
the level of risk
Change on
prior year
High
High
High
High
Medium
Low
Unchanged
Unchanged
Unchanged
Increased
Decreased
Unchanged
The classification of the level of risk in the risk categories is
based on the following value limits:
Classification
Low
Medium
High
Risk level
≤ €500 million
> €500 million-€1,000 million
> €1 billion
Strategic risks and opportunities
In the Porsche AG Group, the supply risks and opportunities
category includes commodity shortages, quality and deadline
problems with purchased parts and software as well as
disruptions in the supply chain due to geopolitical conflicts,
major damage events at suppliers and additional cost claims
from suppliers, among other things.
1,496
269
↑↓ ↑ ||
290
Effects of new or amended IFRS
291
New and amended IFRS not applied
291
Currency translation
292
Basis of consolidation
Accounting policies
Segment reporting
307
Notes to the income statement
316
Notes to the consolidated statement of financial position
339
Other notes
304
275
285
285
276 CONSOLIDATED INCOME STATEMENT
277
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
278
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
280
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Impact of climate change
282
283
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
283 Basis of presentation
284
Significant events
284
IFRS 5-Assets held for sale
CONSOLIDATED STATEMENT OF CASH FLOWS
↑↓ ↑ ||
276
CONSOLIDATED INCOME STATEMENT
-28,924
-27,089
11,606
10,549
3
-2,869
-2,353
2
Pension plan remeasurements recognized in other comprehensive income
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other
comprehensive income
2,227
119
-668
Administrative expenses
Other operating income
4
-1,787
-1,655
-396
4,967
5,157
Profit after tax
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
€ million
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
Note
2023
2022'
€ million
2023
2022¹
Sales revenue
Cost of sales
Gross profit
Distribution expenses
1
40,530
37,637
Carrera GT
270
CONSOLIDATED FINANCIAL STATEMENTS
20
The sale of Porsche vehicles and spare parts to Russia and
Belarus was discontinued shortly after the outbreak of the
conflict. The intention remains to sell the business divisions
located in Russia. The sale project is expected to be completed
before the end of the fiscal year 2024 due to the changes in
external conditions.
The renewed escalation with conflicts in the Middle East will
also continue to have an impact on the global economy and the
business activities of the Porsche AG Group in 2024. These
could also be negatively impacted by the development of the
ongoing trade conflict between China and the USA as well as
tensions in Asia.
For the forecast for 2024, it is assumed that the conflict
between Russia and Ukraine and the conflicts in the Middle East
will continue. The forecast for further global conflicts and
tensions is also based on the current framework conditions, as a
result of which the global sales figures of the Porsche AG Group
will not be additionally affected.
Development of energy supply and commodity
prices
The security of supply with energy and other raw materials, as
well as their price level, is significantly influenced by the
development of the global economy and is generally subject to
the risk of ongoing geopolitical conflicts and tensions. The
supply of energy and other raw materials and parts for
production may be affected by supply bottlenecks and price
increases. Part of the risk from price fluctuations is hedged
directly and indirectly.
Combined Management Report Report on expected developments
271
The continuing Russia-Ukraine conflict and the sanctions and
export controls imposed as a result and the countermeasures
taken have impacted the global economy, the capital markets
and international trade during the reporting year, and continue
to do so. Moreover, supply chains, the supply of commodities
including energy as well as parts and components and their
prices have also been hit by the consequences of the conflict.
272
Availability and price development of essential
parts
The availability and price development of raw materials, parts
and components influences the entire automotive industry and
therefore also the suppliers of the Porsche AG Group. In the
reporting year, there were supplier cost increases, which were
influenced not only by the pricing of intermediates and parts but
also by delivery problems, financial difficulties and the
insolvency of individual suppliers.
The 2024 forecast assumes that the supply chain situation will
pose a similar challenge compared to the reporting year. While
most of the price increases already took effect in the reporting
year, individual delivery delays, delivery failures and possible
insolvencies in the supplier sector must also be expected for the
fiscal year 2024 for the products currently in series production
as well as for planned production starts.
Foreign currency rates
On account of the global nature of its business activities, the
results of operations of the Porsche AG Group are exposed to
the risks and opportunities of exchange rate fluctuations.
Fluctuations in the exchange rate of the euro compared to the
Chinese renminbi, US dollar and the pound sterling are of
particular importance in this regard. In the event of changes in
the exchange rates of these currencies, both transaction-based
and translation-based exchange rate effects could impact the
company's results of operations, financial position and net
assets.
The net exposure in the major currencies for 2024 has been
largely hedged. The 2024 forecast is based on the assumption
that exchange rates will remain within a range comparable to
that of the reporting year.
Product launches
For 2024, the Porsche AG Group assumes that there will be no
production stoppages or plant closures impacting our own
company or our suppliers due to gas shortages, government
restrictions or disruptions in natural gas/electricity supplies.
The 2024 forecast also assumes that energy prices will remain
high. The forecast for 2024 continues to assume that the
development of prices for the most important raw materials and
goods will remain volatile on the whole compared to the
reporting year, however, on average this should not lead to
significant price increases.
The Porsche AG Group will update and add several attractive
models to its product portfolio in 2024. The product launches of
the Panamera, the all-electric Macan, the new Taycan and the
911 model series bring with them increased complexity.
Geopolitical conflicts and tensions
For other markets in the rest of the world, the Porsche AG Group
assumes that the passenger car markets will develop unevenly,
but mostly positively.
REPORT ON EXPECTED DEVELOPMENTS
Below this report describes the expected development of the
Porsche AG Group taking into account the conditions in which it
does business. In line with the group's internal management
system, the forecast period covers one year and contains all
information available at the time of preparing the financial
statements that could have a significant impact on the business
development of the Porsche AG Group. Risks and opportunities
that could give rise to a deviation from the forecast
development are set out separately in the → Report on risks and
opportunities. The report on expected developments contain
forward-looking statements based on the estimates and
expectations of the Porsche AG Group-these can be influenced
by unforeseeable events. As a result of this, the actual business
development may deviate, both positively and negatively, from
the expectations described below as a result of changes in the
political and economic framework.
The assumptions used in preparing this forecast report are
based, inter alia, on current estimates by external institutions;
these include economic research institutes, banks, multinational
organizations and consultancy firms.
DEVELOPMENT OF THE GLOBAL ECONOMY AND
PASSENGER CAR MARKETS
Development of global economy
The Porsche AG Group expects growth in global economic
output to lose some of its momentum in 2024. The persistently
high rate of inflation in many regions and the resulting
restrictive monetary policies of the central banks are expected
to have a negative impact on private demand. Growth prospects
will also be negatively impacted by ongoing geopolitical
tensions and conflicts, largely related to the Russia-Ukraine
conflict, but also to the conflicts in the Middle East. Other risks
are seen in turbulence in the financial markets, in protectionist
tendencies and structural deficits in individual countries.
FORECAST ASSUMPTIONS
The Porsche AG Group expects that both the advanced
economies and emerging markets will record positive growth on
average in 2024, albeit with below-average GDP growth rates.
According to estimates by the Porsche AG Group, economic
growth in the USA and Canada will be subdued by comparison in
2024. Here too, the US Federal Reserve could initiate the first
key interest rate cuts.
For China, the Porsche AG Group expects the economy to grow
at a relatively high level in 2024, albeit at a slightly lower rate
than in the reporting year. The continuing challenging economic
situation in China in particular could continue to have an impact
here.
The Porsche AG Group continues to assume that economic
momentum in other markets in the rest of the world will develop
unevenly, but at a mostly positive rate.
Development in the passenger car markets
The forecast for 2024 is based on the assumptions that
although development in the passenger car markets in the
individual regions will be mixed, overall it will be positive. The
overall global sales volume of new vehicles is expected to be
slightly higher than in the reporting year. However, the
Porsche AG Group expects competition on the international
automotive markets to become increasingly intense. These
assessments are made on the basis of the situation involving
the availability of essential parts, in particular semiconductors
and commodities, not escalating further on account of crises as
well as energy supplies being secured and the respective prices
remaining stable at a high level.
In the German passenger car market, the volume of new
registrations in 2024 is expected to be up slightly on the level of
the reporting year 2023. For the markets in Western Europe, a
slightly higher volume of new passenger car registrations is
expected for 2024 compared to the reporting year. Sales of
passenger cars in 2024 are expected to significantly exceed the
prior-year figures in markets in central and Eastern Europe,
subject to the further development of the Russia-Ukraine
conflict.
For the US American market and also for the region North
America incl. Mexico as a whole, the volume of new passenger
car registrations in 2024 is expected to slightly exceed the
reporting year figure. It is to be expected that in particular
models from the SUV segments will again be in great demand.
For the passenger market in China incl. Hong Kong, the
Porsche AG Group anticipates that the new registrations will be
slightly above the level of the prior year. However, challenging
market conditions and increasingly intense competition are
expected to continue. This trend could also be adversely
affected if geopolitical tensions intensify. The trade dispute
between China and the USA could continue to weigh on
business and consumer confidence.
For Germany, the Porsche AG Group anticipates that GDP
growth will be weak in 2024. Relatively low economic growth is
also expected for Western and Central Europe as a whole. For
consumers and companies in Europe, the biggest challenge will
be the relatively high inflation rate, although this will continue to
fall over the year, and the comparably high interest rate. The
European Central Bank could therefore make its first key
interest rate cuts as early as 2024. The economic performance
of Eastern Europe should continue to increase slightly following
the sharp downturn as a result of the Russia-Ukraine conflict.
The 2024 forecast assumes that product launches can be
carried out as planned or that possible delays can be
compensated for accordingly.
Further forecast assumptions for significant items
To meet the challenges of the mobility business in the future,
the Porsche AG Group is continuously expanding its range of
products and services in the sale of vehicles in the luxury
segment as well as in mobility services. The transformation in
the context of digitalization, sustainability and electromobility is
the biggest change process in the history of the automotive
industry. This involves the Porsche AG Group developing the
products of tomorrow and investing in the digital, sustainable
and electrified future for the company. This involves
investments in research and development, property, plant and
equipment and financial assets, that will be reflected in future.
expenses.
For these same reasons, the forecast for 2024 expects that
total research and development expenses as well as
amortization of intangible assets and depreciation of property,
plant and equipment will remain at a very high level.
€40 to €42 billion
Between 15% and 17%
%
10.6
Between 8.5% and 10.5%
%
25.7
Between 24% and 26%
18.0
%
Between 13% and 15%
Stuttgart, February 19, 2024
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
The Executive Board
Combined Management Report Report on expected developments
273
↑↓ ↑ 0 |||
274
12.8
%
40,530
€ million
OVERALL STATEMENT ON ANTICIPATED
DEVELOPMENT
The Porsche AG Group's planning for 2024 assumes that
average global economic output will continue to grow, albeit at
a lower level compared to the reporting year. This is provided
that geopolitical conflicts and tensions with global
repercussions do not intensify any further. It is expected that
global demand for passenger cars will develop differently from
one region to another but, with the intensity of competition
increasing, growth will be slightly higher overall than the prior-
year level. In China, however, the Porsche AG Group continues to
expect challenging market conditions, which the Porsche AG
Group will counter by balancing market distribution across all
sales regions and harmonizing supply and demand.
Furthermore, risks can be seen in protectionist tendencies,
turbulence in financial markets, structural deficits in some
countries, the real economic impact of high inflation rates and
interest rates around the world. Furthermore, the forecast for
2024 assumes difficulties and continued high prices for
intermediates and raw materials, including energy. At the same
time, the Porsche AG Group believes that its attractive product
portfolio, which bridges the gap between performance, luxury
and sustainability, puts it in a good position to face the current
transformation of the automotive industry and the associated
future challenges in the mobility business. The associated high
level of investment in the digital, sustainable and electrified
future of the company and the planned product launches mean
that the Porsche AG Group faces a challenging year in 2024.
Forecast of the Porsche AG Group
Porsche AG Group
Sales revenue
Return on sales
Automotive segment
Automotive net cash flow margin
Automotive EBITDA margin
Automotive BEV share
Automotive-related financial services are also expected to be of
great importance for global automotive sales in 2024. The
Porsche AG Group expects that the higher interest rate level will
be reflected in a lower portfolio margin due to the delay in
passing on the increased refinancing costs.
For 2024 as a whole, based on the aforementioned
assumptions, the Porsche AG Group expects the operating
return on sales to be between 15% and 17%. This forecast is
based on assumed sales revenue in a range of €40 billion to €42
billion. In particular, reduced vehicle sales, regional and model-
related shifts in sales, the continuing high cost level for the
supply of parts as well as rising depreciation and amortization
due to the extensive investments and higher personnel costs
and non-personnel costs caused by inflation make it necessary
to reduce the forecast for the operating return on sales
compared to the reporting year.
Automotive net cash flow margin is also expected to be lower
compared to the reporting year at between 8.5% and 10.5%.
The Porsche AG Group plans to achieve an EBITDA margin
comparable to the reporting year of between 24% and 26%.
2023
2024
Outlook
04
TAX RISKS AND OPPORTUNITIES
260
Supply risks arise from possible deviations from the plan, for
example In the supply volume, supply quality and supply costs.
The Porsche AG Group is dependent on the performance of its
international supplier network. Risks arise, among other things,
as a result of the single sourcing strategy pursued, supply risks
for necessary commodity and supplier parts, extreme weather
events, geopolitical conflicts and risks regarding the financial
stability of its suppliers. Potential risks from new collaboration
models such as joint ventures, non-controlling interests or
cooperations are also considered in this risk category. Supply
risks are updated by the risk owner on a quarterly basis.
Other changes
Cash and cash equivalents at end of period
3,745
5,826
-583
2,081
-2
-31
-1,089
-3,708
-245
-115
4,319
-4,745
3,057
-3,361
-4,895
-8
5,633
-4,304
-21
-113
-6,606
-2,021
3,075
-1,203
Cash and cash equivalents at end of period
Net change in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash flows from financing activities
Repayments of lease liabilities
Changes in other financial liabilities
Securities and time deposits and loans
5,826
3,745
3,308
283
Consolidated Financial Statements Notes to the consolidated financial statements
The consolidated financial statements were issued for publication by the Executive Board on February 19, 2024.
The period subsequent to the reporting date in which adjusting events can be recognized ends on that date.
Preparation of the consolidated financial statements in accordance with the above standards requires assumptions
to be made regarding some items that affect the amounts reported in the consolidated statement of financial
position or consolidated income statement as well as the disclosure of contingent assets and liabilities. The
consolidated financial statements give a true and fair view of the net assets, financial position and results of
operations and the cash flows as of December 31, 2023.
The income statement has been prepared using the function of expense method, as is common international
practice.
All amounts are rounded in line with common business practice; this can lead to minor differences in total amounts.
Figures of €0.00 are presented as "€- million"; figures between €0.00 and €500,000.00 are rounded in line with
common business practice and presented as "€0 million".
The consolidated financial statements are prepared in euros. Unless stated otherwise, all figures are stated in
millions of euros (€ million).
The only changes required resulted from new and amended standards.
The accounting policies were generally the same as those applied in the prior year.
Moreover, the provisions pursuant to section 315e (1) of the German Commercial Code (HGB) that Porsche AG is
also required to apply, and the German Corporate Governance Code have been complied with when preparing the
consolidated financial statements.
Pursuant to Regulation (EC) No. 1606/2002 of the European Parliament and of the Council, Porsche AG has
prepared its consolidated financial statements for the fiscal year 2023 in accordance with the international
accounting standards adopted by the European Union, the International Financial Reporting Standards (IFRSS). All
the IFRSS adopted by the EU and required to be applied have been complied with.
Porsche AG and its subsidiaries are included in the consolidated financial statements of Volkswagen
Aktiengesellschaft, Wolfsburg (Volkswagen AG), which are published in the Bundesanzeiger [German Federal
Gazette].
Dr. Ing. h.c. F. Porsche Aktiengesellschaft ("Porsche AG") has its headquarters at Porscheplatz 1 in 70435
Stuttgart, Germany, and is registered at the Stuttgart Local Court under HRB no. 730623. The fiscal year is the
calendar year.
BASIS OF PRESENTATION
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT AS OF DECEMBER 31, 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The statement of cash flows is explained in note → 33. STATEMENT OF CASH FLOWS.
2 Offset against reversals of impairment losses.
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Gross liquidity
10,228
9,134
6,483
Repayments of bonds
Proceeds from issuance of bonds
Capital transactions with non-controlling interests
Profit transfer and dividends
Investments in intangible assets (excluding capitalized development costs)
7,114
7,023
Cash flows from operating activities
-983
-645
Change in financial services receivables
-536
-1,322
556
and property, plant and equipment
366
251
Change in leased assets
Change in other provisions
Change in pension provisions
-247
1,052
618
Change in liabilities (excluding financial liabilities)
-190
Change in receivables (excluding financial services)
-1,010
366
-2,016
-1,710
Additions to capitalized development costs
Capital contributions
Cash flows from investing activities
Change in loans
-481
44
Change in investments in securities and time deposits
8
11
Cash received from disposal of intangible assets and property, plant and equipment
18
6
Disposal of other equity investments
66
1
Disposal of subsidiaries
-278
-90
Acquisition of other equity investments
-257
-152
Acquisition of subsidiaries
-1,951
-2,081
284
SIGNIFICANT EVENTS
Russia-Ukraine conflict/Russian business (IFRS 5)
As in the prior year, the Russia-Ukraine conflict resulted in increased uncertainty with regard to the development of
the global economy. In the reporting year, despite the resulting supply shortages, the energy and commodity
markets started to steady, although some energy and commodity prices are still at a relatively high level.
-Porsche Digital GmbH, Stuttgart
Porsche Consulting GmbH, Bietigheim-Bissingen
-Porsche Deutschland GmbH, Bietigheim-Bissingen
-Porsche Dienstleistungs GmbH, Stuttgart
The following fully consolidated affiliated German companies with the legal form of a corporation and partnership
met the requirements of section 264 (3) and section 264b HGB, respectively, and have as far as possible exercised
the option not to publish annual financial statements.
The list of all the shareholdings, which forms part of the annual financial statements of Porsche AG, is presented in
the → 50. LIST OF SHAREHOLDINGS.
1
1
Abroad
Germany
Others
Deconsolidated
Mergers
- Porsche Engineering Group GmbH, Weissach
Others
Number
The changes in the consolidated group during the fiscal year are presented in the table below:
Fully consolidated subsidiaries
238
254
43
49
31
33
38
Initially consolidated
Previously carried at cost
Foundation
-Porsche Engineering Services GmbH, Bietigheim-Bissingen
- Porsche Erste Beteiligungsgesellschaft mbH, Stuttgart
-Porsche Financial Services GmbH, Bietigheim-Bissingen
-Porsche Immobilien GmbH & Co. KG, Stuttgart
3
1
Consolidated Financial Statements Notes to the consolidated financial statements
The Porsche AG Group holds 45% of the shares in Bugatti Rimac d.o.o. and exercises significant influence over the
company. The investment in Bugatti Rimac d.o.o. is accounted for in Porsche AG's consolidated financial
statements using the equity method. Bugatti Rimac is headquartered in Sveta Nedelja, Croatia. Bugatti Rimac
develops, produces and sells Bugatti and Rimac sports cars.
BUGATTI RIMAC D.O.O.
In the course of a financing round in the prior year, the Porsche AG Group made an investment in the two-digit
million euro range. The Porsche AG Group and the Rimac Group have thus taken the next step in their collaboration
toward the digital and electrified future of mobility. The Porsche AG Group holds more than 20% of Rimac Group
and continues to account for it using the equity method due to its significant influence. Rimac Group,
headquartered in Sveta Nedelja, Croatia, develops and produces high-performance components for electric
vehicles. Rimac Group also holds shares in Bugatti Rimac.
RIMAC GROUP D.O.O.
The calculation of the value in use for the purposes of the impairment test is based on a cost of capital of 10.4%
(2022: 9.9%).
In the fiscal year 2023, a reversal of impairment of €27 million (2022: impairment loss of €45 million) on the
recoverable amount of €148 million (2022: €122 million) was recognized in other income and expenses from
equity investments in the item other financial result. The recoverable amount is the quoted price (2022: value in
use).
As of December 31, 2023, the quoted price of the shares in Bertrandt amounted to €150 million (2022:
€118 million).
Bertrandt is an engineering partner of companies in the automotive and aviation industry. Its portfolio of services
ranges from developing individual components through complex modules to end-to-end solutions. Bertrandt's
principal place of business is in Ehningen. Porsche AG's interest amounts to around 29%. Bertrandt is accounted
for in Porsche AG's consolidated financial statements using the equity method.
BERTRANDT AG
From the group's perspective, the associates Bertrandt AG, Ehningen ("Bertrandt"), Rimac Group d.o.o, Sveta
Nedelja ("Rimac Group"), and Bugatti Rimac d.o.o, Sveta Nedelja ("Bugatti Rimac"), are material at the reporting
date.
Investments in associates
The first-time consolidation or deconsolidation of these subsidiaries did not have any material impact on the net
assets, financial position and results of operations, either individually or in the aggregate. From the group's
perspective, the non-consolidated structured companies are immaterial. In particular, there are no significant risks
for the group.
-Porsche Niederlassung Stuttgart GmbH, Stuttgart
-Porsche Nordamerika Holding GmbH, Ludwigsburg
- Porsche Sales & Marketplace GmbH, Stuttgart
-Porsche Zentrum Hoppegarten GmbH, Stuttgart
- Porsche Niederlassung Hamburg GmbH, Hamburg
- Porsche Niederlassung Berlin-Potsdam GmbH, Kleinmachnow
Porsche Niederlassung Berlin GmbH, Berlin
- Porsche Logistik GmbH, Stuttgart
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg
Porsche Leipzig GmbH, Leipzig
-Porsche Investments GmbH, Stuttgart
42
12
13
Germany
Abroad
12
5
4
2
7
3
31
6
26
6
Dec. 31, 2022
Dec. 31, 2023
Liabilities associated with assets held for sale
Other liabilities
Other provisions
Assets held for sale
Cash and cash equivalents
€ million
In accordance with IFRS 5, the assets and liabilities held for sale were recognized at the lower of their carrying
amount and fair value less expected costs of disposal. The main groups of assets and liabilities classified as held for
sale as of December 31, 2023 are presented below.
Also since September 2022, Porsche AG still intends to sell two Russian distribution companies in the automotive
segment, 000 Porsche Russland, Moscow, and 000 Porsche Center Moscow, Moscow, and a Russian company
allocated to the financial services segment, 000 Porsche Financial Services Russland, Moscow. The sale project is
expected to be completed before the end of the fiscal year 2024 due to the changes in external conditions.
IFRS 5-ASSETS HELD FOR SALE
Porsche AG still intends to sell three subsidiaries in Russia which have therefore been classified as a disposal group
held for sale in accordance with IFRS 5 since September 2022. In connection with this and with the measurement
of the disposal group held for sale, please see the explanation in section → IFRS 5 - Assets held for sale.
Moreover, various sanctions have been imposed on Russia as a result of the conflict, especially by the EU and the
USA. These sanctions restrict economic transactions with Russia and have an impact on the Russian companies of
the Porsche AG Group and on sales of vehicles to Russia. The sanctions also affect new financial services business
in Russia and could potentially lead to impairment risks for existing leased assets and financial receivables. In light
of the EU sanctions, Porsche AG discontinued vehicle exports. In addition, the respective sanction requirements are
also being complied with in relation to the supply of spare parts and the provision of technical information. To date,
very few complaints has been received from customers, service providers, or other contract partners. It is not clear
at present how the situation will develop further.
IMPACT OF CLIMATE CHANGE
-694
Against the background of climate change and the associated tightening of emissions regulations, the
transformation of the automotive industry is moving toward electromobility and further digitalization.
For a detailed presentation of how sustainability has been taken into account in the group strategy as well as the
management and planning of the group, please refer to the section → Strategic direction of the Porsche AG Group as well as
the section Non-financial statement in the combined management report.
Associates, joint ventures and other equity investments
Abroad
Germany
Subsidiaries carried at cost
86
90
Abroad
28
27
Parent company and consolidated subsidiaries including special security funds
Germany
2022
2023
The composition of the Porsche AG Group is shown in the table below:
286
↑↓ ↑ 0 ||
285
Consolidated Financial Statements Notes to the consolidated financial statements
An impairment loss of €25 million was recognized for the disposal group as of December 31, 2022. A further
impairment and offsetting currency translation effects were identified as of December 31, 2023 and are included
in the other operating result.
The cumulative negative currency translation differences of €52 million in connection with the disposal group are
contained in other reserves.
Significant companies where Porsche AG is able, directly or indirectly, to significantly influence financial and
operating policy decisions (associates), or where Porsche AG has joint control, directly or indirectly, together with
another party (joint ventures), are accounted for at equity. Insignificant associates and joint ventures are generally
recognized at their respective acquisition cost, taking into account any impairment losses and reversals of
impairments.
Subsidiaries whose business is dormant or insignificant, both individually or in the aggregate, for the presentation
of a true and fair view of the net assets, financial position and results of operations as well as the cash flows of the
Porsche AG Group are not consolidated. They are carried in the consolidated financial statements at cost less any
impairments and reversals of impairments required to be recognized.
In addition to Porsche AG, the consolidated financial statements include all significant German and foreign
subsidiaries, including structured entities, that are controlled directly or indirectly by Porsche AG. The main
purpose of the structured entities is to facilitate asset-backed securities transactions for the purpose of
refinancing the financial services business and to invest financial resources in special securities funds.
BASIS OF CONSOLIDATION
When preparing the consolidated financial statements, the Executive Board took into account the potential impact
of climate change and future regulatory requirements, in particular the associated transformation toward
electromobility. Potential effects, in particular on non-current assets, provisions for emission charges and future
cash flows were included, where possible, in the significant accounting judgments and estimates being
incorporated into the consolidated financial statements. The impact of the transformation of the business towards
electromobility is taken into account in the multi-year operational planning and thus in the calculation of future
cash flows when determining the recoverable amount in an impairment test of goodwill and of intangible assets
with an indefinite useful life. This applies in particular for the planning of future vehicle models and investments in
development costs as well as production facilities. Furthermore, the Porsche AG Group regularly assesses whether
these developments give rise to the need for ad hoc impairment tests or for adjustments to the useful lives of other
non-current non-financial assets. With reference to increasingly stringent emissions regulations, it is ensured that
the various international regulations are taken into account and any obligations are recognized appropriately. This
did not result in any material effects on the consolidated financial statements.
Change in inventories
-40
-122
Disposal of equity instruments
6,914
6
6,908
1
22
-464
599
231
6,519
Capital contribution
Total comprehensive income'
0
1,948
1
22
-464
599
231
1,559
Other comprehensive income, net of tax
4,967
1,947
Profit transfer and dividends payment
Capital transactions involving a change in ownership interest
Change from distribution in kind due to spin-off assets
-1,781
866
-11,679
-11,883
-11,883
-3,986
-6
3,057
3,057
-3,979
-3,979
3,057
Capital transactions involving a change in ownership interest²
Dividends payment²
Capital contribution
Disposal of equity instruments
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance after adjustment at Jan. 1, 2023
Changes in accounting policy to reflect IFRS 17
Balance at Jan. 1, 2023
Balance at Dec. 31, 2022'
299
7
911
4,960
Profit after tax'
Balance at Jan. 1, 2022
equity
Total
Non-controlling
interests
non-controlling
interests
Equity before
Equity-
accounted
investments
Equity and debt
instruments
Deferred costs of
hedging (OCI II)
hedges (OCI I)
45
Cash flow
Retained
earnings
reserves
capital
Capital
Subscribed
€ million
OTHER RESERVES
HEDGING
OTHER RESERVES
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
Currency
translation
14,225
9,146
223
22,933
8
22,925
0
-11
-340
-361
223
9,144
14,225
45
Balance after adjustment at Jan. 1, 2022
-2
-2
-2
Changes in accounting policy to reflect IFRS 17
22,935
8
22,927
0
-11
-340
-361
4,960
3,822
-204
916
12,395
454
21,668
1
21,667
-916
-80
-8
-72
-916
-537
938
Equity is explained in note → 25. EQUITY.
Consolidated Financial Statements Consolidated statement of changes in equity
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new ramended IFRS).
For dividend distributions and capital transactions involving a change in ownership interest see → Equity.
16,305
3,822
911
Balance at Dec. 31, 2023
Other changes
0
-72
-916
5,627
0
237
281
↑↓ ↑ ||
CONSOLIDATED STATEMENT OF CASH FLOWS
Other non-cash expense/income
52
34
Share of profit or loss of equity-accounted investments
5
14
Gain/loss on disposal of non-current assets
3,189
3,528
Depreciation, amortization and impairment losses2
-2,370
-2,190
7,081
7,375
4,327
3,745
Income taxes paid
Cash and cash equivalents at beginning of period
Profit before tax
2022¹
2023
€ million
282
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
5,628
0
471
0
911
8
8
8
17,027
8
17,019
0
11
-804
238
454
12,387
3,822
911
ངང
17,035
8
17,027
0
11
-804
238
3,822
1
12,395
238
471
0
-2
།ས་ལ།།
17
267
700
-217
4,880
267
700
-217
-277
5,157
0
5,157
5,157
17,035
8
17,027
0
11
-804
454
5
287
↑↓ ↑ 0 |||
CHF
Switzerland
RUB
Russia
1,440.7150
KRW
Republic of Korea
1.4681
CAD
Canada
USA
156.7900
Japan
8.2530
8.4685
8.3210
8.6529
HKG
Hong Kong
0.8526
0.8700
0.8868
JPY
USD
99.9661
0.9264
1.1077
140.6650
1.4440
1,338.2950
76.2868
0.9852
1.0677
Development costs are recognized for products provided that expenditures can be clearly allocated and all other
recognition criteria of IAS 38 are met. The capitalized development costs include all direct costs and production
overheads directly attributable to the development process incurred after the point in time at which all recognition
criteria are met. Capitalized development costs are amortized beginning at the start of use (e.g., start of
production) using the straight-line method over the expected product life cycle, taking any impairments into
account. Useful lives mainly range from three to nine years. Research and non-capitalizable development costs are
expensed as incurred.
Goodwill, intangible assets with indefinite useful lives and intangible assets that are not yet ready for use are not
amortized. Each individual asset or cash-generating unit is tested at least once a year for impairment. If there is
impairment, an impairment loss is recognized. Intangible assets with indefinite useful lives are reviewed once a
year to determine whether the indefinite life assessment continues to be supportable. If this is no longer the case,
the change in useful life from indefinite to finite is made on a prospective basis.
Purchased intangible assets with a finite useful life are amortized, generally on a straight-line basis, over their
useful life, taking any impairments into account. Useful lives range from three to five years. Useful lives, residual
values and methods of amortization are reviewed, and adjusted if appropriate, at least at the end of the reporting
year. If adjustments are made, these are accounted for as changes in estimates.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets not acquired in a business combination are initially recognized at cost in accordance with IAS 38
plus costs directly attributable to the acquisition. The cost of intangible assets acquired as part of a business
combination is their fair value as of the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortization and any accumulated impairment losses.
Intangible assets
With the exception of certain items such as financial instruments measured at fair value and provisions for
pensions and similar obligations, the consolidated financial statements are prepared using the historical cost
principle (cost model). The methods used to measure the individual items are presented in more detail below.
The comparative information is based in principle on the same accounting policies applied for the reporting period
for the fiscal year 2023. Where changes have been made, the effect is explained in the relevant notes.
The same accounting policies are used in the case of equity-accounted investments for the purpose of determining
the attributable share of the net assets. This is based on the most recent available financial statements of the
respective company.
The assets and liabilities of Porsche AG and the consolidated German and foreign subsidiaries included are
accounted for using uniform accounting policies applicable within the Porsche AG Group.
Measurement principles
ACCOUNTING POLICIES
292
↑↓ ↑ 0 ||
291
Consolidated Financial Statements Notes to the consolidated financial statements
1.0541
1.0054
73.2742
1,358.1973
1.3705
138.0236
151.9382
1.4596
1,413.5047
92.2994
0.9718
1.0817
0.8691
The amortization of intangible assets is allocated to the corresponding functional areas.
GBP
7.0814
No material impact
No
January 1,
2025
August 15,
2023
Lack of exchangeability
IAS 21
Additional notes
No
No material impact
Yes
Mandatory first-time application from the perspective of Porsche AG and its subsidiaries on the basis of the IFRS effective date, subject to
adoption by the EU if the EU endorsement process has yet to be completed.
2024
January 1,
2024
Supplier finance arrangement
IFRS 7
IAS 7/
2022
October 31, January 1,
Long-term liabilities with specific
credit terms
IAS 1
No material impact
Yes
No material impact
May 25,
2023
CURRENCY TRANSLATION
The Porsche AG Group uses the rates of an external market data provider. All rates are based on the respective euro
exchange rates. All non-euro exchange rate combinations are derived from these rates.
Closing rate
7.6598
7.3661
7.8700
CNY
China
5.4444
5.4031
5.6444
5.3750
BRL
Brazil
1.5175
1.6286
1.5706
1.6292
AUD
Australia
2022
2023
Dec. 31, 2022
Dec. 31, 2023
€1 =
Average rate
United Kingdom
Property, plant and equipment
Items of property, plant and equipment are measured at cost less depreciation and, if necessary, impairment
losses. Investment subsidies received are generally deducted from cost. Special operational equipment is reported
under other equipment, furniture and fixtures. Property, plant and equipment is depreciated pro rata temporis on a
straight-line basis over the expected useful life.
Depreciation is largely based on the following useful lives:
↑↓ ↑ ||
297
Consolidated Financial Statements Notes to the consolidated financial statements
Financial assets are exposed to default risk, which is taken into account by recognizing loss allowances or, if losses
have already been incurred, by recognizing impairment losses. Default risk on loans and receivables in the financial
services segment is accounted for by recognizing specific loss allowances and general loss allowances.
Impairment of financial instruments
Derivatives used by the Porsche AG Group for financial management purposes to hedge against interest rate,
currency, commodity price, share and bond risks, but that do not meet the strict hedge accounting criteria of
IFRS 9, are classified as financial assets and liabilities at fair value through profit or loss (also referred to below as
derivatives not within hedge accounting). This also applies to share options. As a general rule, external hedging
instruments of intragroup hedged items that are subsequently eliminated in the consolidated financial statements
are also assigned to this category. Assets and liabilities measured at fair value through profit or loss consist of
derivatives or components of derivatives that are not within hedge accounting. These relate, for example, to non-
designated forward exchange transactions and interest rate hedges.
When hedging future cash flows, the hedging instrument is measured at fair value. The designated effective
portion of the hedging instrument is recognized in OCI I and the non-designated effective portion of the hedging
instruments is recognized in OCI II. They are only recognized in profit or loss or in the inventories when the hedged
item is recognized in profit and loss. The ineffective portion of a cash flow hedge is immediately recognized in
profit or loss.
Porsche AG Group companies use derivatives to hedge future cash flows (hedged items). Appropriate derivatives
such as swaps, forward transactions and options are used as hedging instruments.
Derivatives and hedge accounting
Shares in subsidiaries, associates and joint ventures that are neither consolidated nor accounted for using the
equity method for reasons of materiality do not fall within the scope of IFRS 9 and IFRS 7.
298
For current receivables and payables, amortized cost generally corresponds to the principal or repayment amount.
The Porsche AG Group does not exercise the fair value option for financial assets and liabilities.
All financial liabilities at fair value through profit or loss relate to derivatives not within hedge accounting.
- hedging relationships not within hedge accounting and
investment fund units.
Within the Porsche AG Group, the category "Financial assets at fair value through profit or loss" mainly comprises
Financial assets that are equity instruments are measured at fair value. For the most part, the Porsche AG Group
exercises the option to recognize subsequent fair value changes through other comprehensive income. The only
exceptions are interests in companies that are not material to the consolidated financial statements and in those
that do not conduct business operations. For such interests, reasonable fair values that are free from major
fluctuations cannot be reliably determined without undue cost or effort. Such interests are therefore measured at
amortized cost.
Financial assets and liabilities measured at fair value
For reasons of materiality, discounting or unwinding of discounts is not applied to current receivables and liabilities
(due within one year).
-loans.
-bonds, commercial papers and notes,
- liabilities to banks,
- other financial liabilities,
Fair value generally corresponds to the market or quoted prices (level 1). If no active market exists, the fair value is
determined where possible using observable inputs other than quoted prices (level 2). If no observable inputs are
available, fair value is determined using valuation techniques, such as by discounting the future cash flows at the
market interest rate, or by using recognized option pricing models and-as far as possible-is verified by
confirmations from the banks that handle the transactions (level 3).
In particular, in accordance with group-wide standards, a loss allowance is recognized on these financial assets in
the amount of the expected loss. The actual specific loss allowances for the losses incurred are then charged to
this loss allowance. A potential impairment is assumed not only for delayed payments of more than 90 days, the
institution of enforcement measures, the threat of insolvency or overindebtedness, application for or the opening of
insolvency proceedings or the failure of financial reorganization measures, but also for receivables that are not past
due.
Insignificant receivables and significant individual receivables for which there is no indication of impairment are
grouped together into homogeneous portfolios on the basis of comparable credit risk characteristics and allocated
by risk class. Average historical default probabilities are used in combination with forward-looking parameters for
the respective portfolio are used to calculate the amount of the impairment loss.
Credit risks must be considered for all financial assets measured at amortized cost, as well as for contract assets in
accordance with IFRS 15 and lease receivables within the scope of IFRS 16. The rules on impairment also apply to
risks from irrevocable credit commitments and to the measurement of financial guarantees.
Consolidated Financial Statements Notes to the consolidated financial statements
Income from assets for which a group entity has a buy-back obligation is not recognized until the assets have
finally left the group. If a fixed repurchase price was agreed when the contract was concluded, the difference
between the selling and repurchase price is recognized as income ratably over the term of the contract. Until the
end of the contract term, the assets are reported in inventories in case of current contract end dates and in leased
assets in the case of non-current contract end dates.
For extended warranties granted to customers for a specific model, a provision is generally recognized in the same
way as for statutory warranties. If the warranty is optional for the customer or contains an additional service
component, the related revenue is deferred and recognized over the warranty term.
Sales revenue from extended warranties or maintenance agreements is recognized when services are rendered. In
the case of prepayments, deferred income is recognized proportionately by reference to the costs expected to be
incurred, based on experience.
If services are sold to the customer together with the vehicle and the customer pays for them in advance, the group
recognizes a corresponding contract liability until the services have been rendered. Examples of services that
customers pay for in advance include servicing, maintenance and certain guarantee contracts, as well as mobile
online services.
Revenue from long-term construction contracts is recognized in accordance with the percentage of completion
method.
Revenue from receivables from financial services is recognized using the effective interest method. Income from
operating leases is recorded on a straight-line basis over the term of the agreement.
Sales allowances and other variable consideration are measured on the basis of experience and by taking account
of current circumstances. Vehicles are normally sold to dealers on payment terms. A trade receivable is recognized
for the period between vehicle delivery and receipt of payment. Financing components included therein are only
accrued if the period between the transfer of the goods and the payment of consideration is longer than one year
and the amount to be accrued is material.
Revenue, interest and commission income from financial services and other operating income are recognized only
when the relevant services have been rendered or the customer has obtained control of the goods or services.
Revenue is reported net of discounts, customer bonuses and rebates.
Revenue and expenses
Current liabilities not included within the scope of a specific IFRS are recognized at their repayment or settlement
value.
Other non-current liabilities not included within the scope of a specific IFRS are carried at amortized cost in the
statement of financial position. Differences between their historical cost and their repayment amount are
accounted for using the effective interest method.
Other liabilities (not included within the scope of a specific IFRS)
Provisions not resulting in an outflow of resources within one year are recognized at their settlement value
discounted to the reporting date. The discount factor is based on market interest rates. In the eurozone, an average
interest rate of 2.87% (2022: 3.16%) was used. The settlement amount also includes the expected cost increases.
Other provisions
Share-based payment comprises performance share plans, i.e., payment plans that are settled in cash and
accounted for in accordance with IFRS 2.
Share-based payment
Current income taxes are measured as income tax assets and liabilities for current and prior periods at the amount
expected to be refunded by or paid to the taxation authorities. Therefore, current taxes recognized in the fiscal year
also include adjustments for uncertain tax payments or refunds for periods that have not yet been finally assessed,
excluding interest and penalties on back taxes. Provisions are recognized for potential obligations in respect of
such tax assessments that have not yet been finally reviewed by the tax authorities. Any such identified tax risk is
measured on the basis of the most likely value to be recognized to reflect the risk, should it materialize.
Current taxes
The tax consequences of profit distributions are taken into consideration as soon as the profit distributions are
planned.
Deferred tax assets are measured taking into account estimates regarding the future availability of taxable income.
This includes the amount and nature of this taxable income, the periods in which it is expected as well as available
tax planning measures. The measurement of deferred tax assets for tax loss carryforwards is generally based on
future taxable income over a planning horizon of five fiscal years. A previously unrecognized deferred tax asset is
reassessed on an annual basis and recognized to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered. Loss allowances are recognized on deferred tax assets when it is
unlikely that sufficient future taxable income will be available within a reasonable period of time against which the
deductible temporary differences, tax loss carryforwards and tax credits can be offset.
Deferred taxes
As a matter of principle, a simplified process, which takes historical default rates into account, and specific loss
allowances are used to account for impairment losses on receivables outside the financial services segment.
-trade payables,
The financial liabilities measured at amortized cost using the effective interest method arise from
-cash and cash equivalents.
-time deposits, and
To determine whether goodwill has to be impaired, the corresponding automotive or financial services segment is
generally used as cash-generating unit. For intangible assets as well as for property, plant and equipment, the
automotive segment forms the cash-generating unit and is the basis for the impairment test. If the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, an impairment loss is recognized to
account for the difference.
The recoverable amount is determined in the course of impairment testing and is generally determined separately
for each asset. If it is not possible to determine the recoverable amount for an individual asset because it does not
generate cash inflows that are largely independent of the cash inflows from other assets, it is determined on the
basis of a group of assets that constitutes a cash-generating unit.
At the end of each reporting period, the group assesses whether there is any indication of impairment. An
impairment test is performed at least once a year for goodwill, capitalized costs for intangible assets (in particular,
where development costs are recognized for products under development) and intangible assets with an indefinite
useful life. For intangible assets with finite useful lives, property, plant and equipment as well as leased assets an
impairment test is performed only when there is an indication that the asset may be impaired.
Impairment testing
The cost of shares in associates is accounted for using the equity method. When reviewing the recoverability of the
net investment, the recoverable amount is determined using the principles described for indefinite-lived intangible
assets.
Equity-accounted investments
294
↑↓ ↑ 0 |||
293
Consolidated Financial Statements Notes to the consolidated financial statements
Borrowing costs for qualifying assets are capitalized as part of the cost of the asset. A qualifying asset is an asset
that necessarily takes at least a year to get ready for its intended use.
Capitalization of borrowing costs
Vehicles leased out under operating leases are recognized at cost and depreciated on a straight-line basis to their
calculated residual value over the term of the lease. Depending on the local circumstances and past experience
from used vehicle sales, regularly updated internal and external data on the development of residual values are
included in the residual value forecast. In doing so, assumptions must primarily be made about future vehicle
supply and demand, as well as movements in vehicle prices. These assumptions are based on either qualified
estimates or information published by external experts. Qualified estimates are based on external data, where
available, and take into account additional information available internally, such as past experience and recent sales
information.
Leased assets
Many leases contain extension and termination options.
There are practical expedients for short-term leases and leases of low-value assets. The Porsche AG Group takes
advantage of these and consequently does not recognize right-of-use assets or lease liabilities for such leases. The
associated lease payments are recognized directly in profit or loss as an expense. Leases of low-value assets are
those where the value of the leased asset does not exceed €5,000 when new. Furthermore, the accounting
requirements of IFRS 16 are not applied to leases of intangible assets.
The right-of-use assets for leases recognized in the statement of financial position are reported in those items that
the assets underlying the lease would be reported in if they were owned by the Porsche AG Group. As of the
reporting date, right-of-use assets are therefore recognized under non-current assets, mainly in the item "Property,
plant and equipment".
Residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at each reporting
date. The depreciation of property, plant and equipment is allocated to the corresponding functional areas.
Right-of-use assets/lease liabilities
3 to 13
9 to 40
7 to 20
Years
Other equipment, furniture and fixtures
Office and factory buildings
Technical equipment and machinery
The recoverable amount of an asset or a cash-generating unit is the higher of fair value less costs to sell and value
in use. The fair value less costs to sell is the amount obtainable from the sale of an asset or cash-generating unit in
an arm's length transaction between knowledgeable, willing parties, less the costs to sell. Costs to sell are the
incremental costs directly attributable to the disposal of an asset or cash-generating unit, excluding finance costs
and income tax expense. Value in use is determined using the discounted cash flow method or capitalized earnings
method on the basis of the estimated future cash flows expected to arise from the continuing use of the asset and
its disposal.
Yes
To determine whether goodwill, intangible assets as well as property, plant and equipment are impaired, the group
uses the value in use.
demand and the development of electromobility in the individual regions of the world. The negative impact on
earnings expected from 2024 onwards due to continuously rising material costs as well as more stringent emission
and fuel consumption regulations will be offset now and in the future by price and product mix improvements as
well as corresponding efficiency programs. In addition, the planning is based on the assumption that the supply
situation for intermediates and commodities will normalize from the fiscal year 2024 onwards. Furthermore, the
Porsche AG Group anticipates an increase in the operating return on sales for the medium term with the long-term
target of more than 20%.
- other receivables and financial assets,
- trade receivables,
- receivables from the financial services business,
Financial assets measured at amortized cost using the effective interest method are
Financial assets and liabilities measured at amortized cost
The Porsche AG Group allocates financial assets and liabilities to the "at amortized cost" and "at fair value" classes.
Regular way purchases or sales of financial instruments are accounted for at the settlement date, i.e., the date on
which the asset is delivered.
Financial instruments
the reporting period bear to the estimated total contract costs (cost-to-cost method). Contract costs incurred are
often the best way to measure the stage of completion of the performance obligation. If the outcome of a
performance obligation satisfied over time is not yet sufficiently certain, but the company expects to at least have
its costs refunded by the customer, revenue is recognized only to the extent of contract costs incurred (zero profit
method). As long-term construction contracts regularly involve contingent receivables due from the customer until
they are completed or the customer pays, corresponding contract assets are recognized. As soon as the company's
performance is complete, a trade receivable is recognized. Any negative balance is reported under other payables.
The principle of measuring assets at the lower of carrying amount and net realizable value is observed.
296
↑ ↓ ↑ 0 |||
295
Consolidated Financial Statements Notes to the consolidated financial statements
For contracts under which performance is satisfied over time, revenue is recognized in accordance with the stage
of completion. The stage of completion is determined as the proportion that contract costs incurred by the end of
Long-term construction contracts
Inventories primarily include raw materials, consumables and supplies, work in process and finished goods which
are carried at the lower of cost or net realizable value. Borrowing costs are not capitalized. Inventories of a similar
nature are generally measured using the weighted average cost method.
Inventories
A review of whether the reasons for a previously recognized impairment loss still exist is carried out on an annual
basis. If the reasons for impairment losses recognized in prior years no longer exist, they are reversed through profit
or loss (with the exception of goodwill). The amount reversed cannot result in a carrying amount that exceeds the
amount that would have been determined as the carrying amount, net of depreciation and amortization, had no
impairment loss been recognized for the asset in prior years.
An impairment loss is allocated to the corresponding functional area and is recognized in the income statement in
the item "amortization of intangible assets and depreciation of property, plant and equipment and leased assets" if
the recoverable amount of the asset is lower than its carrying amount.
Any impairment of leased assets from vehicle leasing contracts, determined by impairment testing in accordance
with IAS 36, is reflected in impairment losses and adjusted rates of depreciation. Depending on the local
circumstances and past experience from used vehicle sales, regularly updated internal and external data on the
development of residual values are included in the residual value forecast. In doing so, assumptions must primarily
be made about future vehicle supply and demand, as well as movements in vehicle prices. These assumptions are
based on either qualified estimates or information published by external experts. Qualified estimates are based on
external data, where available, and take into account additional information available internally, such as past
experience and recent sales information.
In the case of assets that are not yet available for use, impairment testing is carried out upon initial recognition and
subsequently once per year on the basis of the current business plan. Assets already in use are only tested for
impairment if there is a triggering event. Value in use is determined for the impairment testing using a market-
oriented discount rate for similar risks. The determination of the cost of capital rates is based on a rate of interest
for risk-free investments. Furthermore, in addition to a market risk premium, specific peer group information is
taken into account on beta factors, leverage ratio and borrowing rate. The composition of the peer groups used to
determine beta factors is reviewed on an ongoing basis and modified when necessary.
The recoverable amount is determined based on current planning as well as reasonable assumptions about
macroeconomic trends (currency, interest rate and commodity price trends) as well as historical developments.
When determining the cash flows, an anticipated growth rate of 1.0% is used as a basis. The growth rate is based
on the circumstances specific to the industry and takes into account the specific price and cost situation.
With regard to the assumptions in the detailed planning period, we refer to the explanations on the judgment and
estimates of management. More detailed information can also be found in the report on expected developments,
which forms part of the management report. The planning premises are adjusted to reflect the current information
available.
Value in use is determined based on a multi-year operational plan prepared by management including material
assumptions about growth and the volume of unit sales. The planning period generally extends over five years. The
planning is based on the assumption that global economic output in 2024 will grow overall, albeit at a slower pace.
The persistently high inflation in many regions and the resulting restrictive monetary policies taken by central
banks is expected to have an increasingly negative impact on private demand. Other risks are seen in turbulence in
the financial markets, in protectionist tendencies and structural deficits in individual countries. Growth prospects
will also be negatively impacted by ongoing geopolitical tensions and conflicts, largely related to the Russia-
Ukraine conflict, but also to the conflicts in the Middle East. It is assumed that both the advanced economies and
emerging markets will record positive growth on average, albeit with below-average GDP growth rates. It is also
expected that the global economy will recover in 2025 and continue on a path of stable growth until 2028. The
volume planning of the Porsche AG Group reflects the aforementioned regional differences and takes into account
the effects of currently known regional conflicts. The Porsche AG Group aims to increase the share of all-electric
vehicles as a proportion of total deliveries from around 13% in 2023 to more than 80% in 2030, depending on
January 1,
2024
January 1,
2024
January 23,
2020
current or non-current
Profit/loss from continuing operations after tax
-17
-86
8
199
216
148
Carrying amount of equity-accounted investments
336
86
Profit/loss from discontinued operations after tax
1,157
61
-4
Consolidation/goodwill/others
132
155
152
Attributable share of net assets
294
753
524
67
Other comprehensive income
1
2022
Attributable share of net assets
Net assets at Dec. 31
Dividends
Changes in reserves
Other comprehensive income
Profit/loss
45
21
29
Net assets
Current liabilities
Non-current liabilities
Current assets
Non-current assets
Equity interest (in %)
2022
2
Dividends received
Net assets at Jan. 1
-17
-86
8
Total comprehensive income
294
753
524
Net assets at Dec. 31
2023
498
525
527
Bugatti Rimac
Rimac Group
Bertrandt
€ million
Bugatti Rimac
Rimac Group
Bertrandt'
Reconciliation of the financial information to the carrying amount of the investment
Sales revenue
Net assets
Current liabilities
Non-current liabilities
Current assets
Non-current assets
Equity interest (in %)
2023
€ million
Summarized financial information on material associates on a 100% basis
288
29
524
21
Net assets at Jan. 1
578
92
189
-9
41
8
Dividends
Changes in reserves
48
33
347
423
353
534
1
-17
-86
8
270
830
524
Other comprehensive income
Profit/loss
45
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
384
-105
290
↑↓ ↑ ||
289
Consolidated Financial Statements Notes to the consolidated financial statements
62
87
-53
-54
-53
-54
EFFECTS OF NEW OR AMENDED IFRS
2022
There are contingent liabilities due to associates of €206 million (2022: €124 million).
Carrying amount of equity-accounted investments
Measurement using the equity method is based on the provisional consolidated results of Bugatti Rimac d.o.o. Adjustments on the basis of new
insights gained were taken into account in the current fiscal year in the line item changes.
3
2 Measurement using the equity method is based on the provisional consolidated results of Rimac Group d.o.o..
to September 30, 2023, and those for the fiscal year 2022 to the period from October 1, 2021 to September 30, 2022.
September 30, 2023 reporting date; the income statement disclosures for the fiscal year 2023 relate to the period from October 1, 2022
Bertrandt AG has a deviating fiscal year. The disclosures for Bertrandt's statement of financial position therefore relate to the
Dividends received
Total comprehensive income
2023
Porsche AG and its subsidiaries have applied all accounting pronouncements adopted by the EU and effective for
periods beginning in fiscal year 2023.
Amendments to IAS 12, resulting in almost 140 countries agreeing on global minimum taxation, have been
mandatory since January 1, 2023 (Pillar 2). IAS 12 provides a temporary exemption from the requirement to
account for deferred taxes provided that they arise from Pillar 2 being implemented by the respective countries.
For further information on Pillar 2, see note "Composition of tax income and expenses".
Application of the amendments to IAS 12 relating to deferred taxes on leases and decommissioning/restoration
liabilities has also been mandatory since January 1, 2023. According to this amendment, when initially recognizing
such assets and liabilities, any deferred taxes also have to be recognized accordingly.
IAS 1
22, 2022
Sale and leaseback transactions
Classification of liabilities as
IFRS 16
September
Expected impact
Adopted by
the EU
Application
mandatory'
Published by
the IASB
Standard/
Interpretation
fiscal year.
In its 2023 consolidated financial statements, Porsche AG did not apply the following accounting standards that
have been adopted by the IASB as of December 31, 2023 but whose application was not yet mandatory for the
NEW AND AMENDED IFRSS NOT APPLIED
For contracts whose primary purpose is to provide services in return for a fixed fee (fixed-price service contracts),
the Porsche AG Group uses the option to recognize these service contracts as services in accordance with IFRS 15.
First-time application resulted in a slight change in equity both as of January 1, 2023 of €8 million and
January 1, 2022 of €2 million. In addition, the first-time application as of January 1, 2023 resulted in a reduction in
total assets of €31 million. This is due primarily to the changed system for calculating provisions relating to the
insurance business. The change in the system for recognizing income and expenses does not have any material
effect on the income statement. Prior-year figures have been adjusted accordingly.
The Porsche AG Group conducts reinsurance business in the repair cost insurance segment. All provisions from
insurance contracts are measured using the general measurement model. The required data is determined using
standard actuarial methods. The Porsche AG Group uses the bottom-up approach to calculate the discount rate.
For the insurance business, the risk-free yield curve is generally derived from overnight index swaps of the
currency in which the underlying insurance contracts are concluded.
IFRS 17 provides new guidance on accounting for insurance contracts. The Porsche AG Group applied IFRS 17 for
the first time as of January 1, 2023 using the full retrospective method.
IFRS 17-Insurance Contracts
The above amendments do not materially affect the Porsche AG Group's results of operations, financial position
and net assets.
As of December 31, 2023, the Porsche AG Group converted existing derivative transactions to the new benchmark
interest rates. From the Porsche AG Group's point of view, the EURIBOR is not affected by a replacement.
The Porsche AG Group was affected by the Interest Rate Benchmark Reform regarding its IBOR-related variable
transactions. Risk management strategies and processes have been implemented to avoid significant risks
resulting from the replacement of existing benchmark interest rates with alternative ones (basis spread risk,
liquidity risk, legal risk, operating risk). The Porsche AG Group has closely observed the markets and the findings of
the various industry work groups managing the transition to the new benchmark interest rates. This included
announcements made by the responsible regulatory authorities.
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Interest Rate Benchmark Reform-Phase 2) have been
mandatory since January 1, 2021.
Amendments to IAS 8 specifying the difference between the change in an accounting method and the change in an
accounting estimate have also been mandatory since January 1, 2023.
Amendments were also made to IAS 1 that have likewise been applicable since January 1, 2023. At the core of
these amendments is the aim to make disclosures on accounting policies more company-specific and therefore
more useful for decision-making by tightening the definition of materiality. In light of this, the disclosures made by
the Volkswagen Group on accounting policies were revised. In particular, generally formulated disclosures derived
from the IFRS standards were reduced to the bare essentials.
Other comprehensive income
Earnings after tax from discontinued operations
Earnings after tax from continuing operations
1
489
512
Consolidation/goodwill/others
337
418
581
207
232
122
86
61
-30
121
171
152
270
830
524
-3
7
550
4
296
-33
528
-2
Carrying amount of equity-accounted investments
36
-105
3
4
Total comprehensive income
Other comprehensive income
Profit/loss from discontinued operations after tax
-33
-105
-2
Profit/loss from continuing operations after tax
331
66
1,008
Sales revenue
€ million
Summarized financial information on individually immaterial associates
270
830
524
540
41
336
55
232
280
↑ ↓ ↑ 0 |||
Land, land rights
6.7
1,951
2,081
1
0
13,052
Changes in consolidated group
10
8,353
0
1
Foreign exchange differences
6.9
2,651
2,834
2,479
Amortization of capitalized development costs
2
12
-165
165
1
Transfers
22.4
784
10
960
1,845
106
374
Additions
73.6
73.5
2,325
1
thereof capitalized development costs
Capitalization ratio in %
↑ ↓ ↑ 0 |||
315
Consolidated Financial Statements Notes to the consolidated financial statements
5.45
5.67
5.44
316
5.66
€
€
2,482
2,581
€ million
2,478
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Total research and development costs
NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Research and development costs in the reporting period developed as follows:
2,210
Balance at Jan. 1, 2022
Cost
Total
Goodwill
Capitalized
Capitalized
development development costs
costs for products for products under
currently in use development
13. INTANGIBLE ASSETS
intangible assets
€ million
Development of intangible assets from January 1 to December 31, 2022
%
2022
2023
€ million
Other
Research and development costs recognized in the income statement
1,712
1,484
Cost
2
2
0
1
100
Disposals
Classified as held for sale
Total
Goodwill
impairment losses
Additions to cumulative
development development costs
costs for products for products under
currently in use development
intangible assets
Transfers
€ million
25
2,556
-2
6,293
1
1,608
1,583
4,732
1,560
Balance at Jan. 1, 2023
Balance at Dec. 31, 2022
20
-1
0
-1
Foreign exchange differences
4,150
7,040
13,766
Other
1,039
784
7,040
2,556
Balance at Dec. 31, 2022
Amortization and impairment
Development of intangible assets from January 1 to December 31, 2023
The carrying amount of goodwill in the Porsche AG Group as of December 31, 2023 amounts to €19 million (2022:
€19 million).
1,621
4,150
7
29
3
0
3
Classified as held for sale
Disposals
15.3
1,585
20
13,766
Balance at Jan. 1, 2022
255
amortization
Capitalized
Capitalized
Additions to cumulative
1
1
Changes in consolidated group
0
0
1
Foreign exchange differences
6,862
5,531
1,330
2,576
Carrying amount at
€ million
5,157
The local tax rates applied for foreign entities range between 0% and 34% (2022: 0% and 34%). These local tax
rates, together with the investments in securities subject to a lower tax rate in Germany, lead to a different tax
burden compared to the group tax rate. The change in the deviating tax burden primarily stems from the
investments in securities and the increase in the group tax rate. Tax rate changes led to a measurement effect in
the reporting period of €-5 million (2022: €1 million).
The statutory corporate income tax rate for the 2023 assessment period in Germany was 15% (2022: 15%).
Including trade tax and the solidarity surcharge, the nominal tax rate comes to 30.2% (2022: 30.0%). A tax rate of
30.2% (2022: 30.2%) was applied to measure the deferred taxes in the German consolidated tax group. This group
tax rate is therefore used for the reconciliation.
Until December 31, 2022, tan income tax group was in place with Porsche Holding Stuttgart GmbH and, through
this company, with Volkswagen AG. This meant that, until 2022, the group tax rate of Volkswagen AG and thus of
the Volkswagen AG Group was also relevant for the Porsche AG Group, Porsche AG and its tax group subsidiaries.
Following the termination of the income tax group in place with Volkswagen AG, the group tax rate is determined at
the level of the Porsche AG Group.
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The following recognized deferred tax assets and liabilities were attributable to recognition and measurement
differences in the individual items of the statement of financial position and to tax loss carryforwards:
Deferred taxes by statement of financial position item
The reconciliation item to tax-free income and non-deductible operating expenses contains tax effects on tax-free
income of €11 million (2022: €9 million) and non-deductible expenses of €100 million (2022: €65 million).
The tax loss carryforwards largely stem from Germany (€38 million), the USA (€14 million) and Luxembourg
(€33 million). Of these total tax loss carryforwards, total deferred taxes of €2 million (2022: €2 million) were
recognized for tax loss carryforwards and tax credits.
2 On account of the tax group in place with VW, VW's group tax rate was relevant in the fiscal year 2022. Following the termination of the income
tax group in place with VW, the group tax rate will be determined at the level of the Porsche AG Group from 2023 onwards.
The effect of the tax rate change in Germany in 2022 amounts to €2 million.
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
2,114
29.9
2,218
30.1
-55
Effective tax rate in %
3
Reported income tax expense
There were no effects from spin-offs in the current fiscal year. In the prior year, this effect resulted from structural
measures in the group prior to the IPO.
Intangible assets, property, plant and
equipment and leased assets
31
3,063
3,394
1
6
130
15
30
€ million
10
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Deferred tax liabilities
Deferred tax assets
Other equity investments
Inventories
Dec. 31, 2022¹
33
Effects of spin-off
Other differences
34
4
39
Expiry over 10 years
-20
-90
Effects of loss carryforwards and tax credits
13
15
17
Expiry within 10 years
68
43
69
17
0
7
Total
1
-5
Effect of tax rate changes³
-8
-10
Taxes relating to other periods
-2
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
89
Tax-exempt income and non-deductible business expenses
81
94
88
101
74
Receivables and other assets
(including financial services)
Securities
26
48
12. EARNINGS PER SHARE
The profit/loss attributable to non-controlling interests amounts to €0 million (2022: €7 million) and relates to
25% of the shares in Porsche Singapore Pte. Ltd, Singapore. The 25% of the shares in Porsche Taiwan Motors Ltd.,
Taipei, recognized in the prior year were acquired in the fiscal year 2023.
11. PROFIT/LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
The exemption introduced in May 2023 with the amendments to IAS 12 means that deferred taxes in connection
with income tax arising from applicable or announced tax regulations on implementing the model rules of Pillar 2
will not be recorded or disclosed within the Porsche AG Group.
The assessment of the potential risk arising from minimum taxation is based on the most recently available
country-by-country report and financial statements for the business divisions of the Porsche AG Group. The
assessment shows that the effective tax rates of Pillar 2 in most of the countries in which the Porsche AG Group
operates are over 15%. However, there are a low number of countries in which the temporary safe harbor
exemption does not apply and the effective tax rate of Pillar 2 is under 15%. The Porsche AG Group does not
expect any significant income tax risk to arise from Pillar 2 in these countries.
The model rules published by the OECD on global minimum taxation (Pillar 2) were enacted or largely enacted in
certain countries in which the Porsche AG Group operates. In Germany, the legislation comes into force for the
Porsche AG Group for the fiscal year beginning on January 1, 2024. The Porsche AG Group falls within the scope of
the enacted or largely enacted legislation and has assessed the potential risk of the Porsche Group with regard to
global minimum taxation.
Basic earnings per share are calculated by dividing the share of the result of Porsche AG's shareholders by the
weighted average number of ordinary and preferred shares outstanding during the fiscal year. By amendment to
the Articles of Association of Porsche AG in the prior year that took effect on August 15, 2022 upon entry in the
commercial register, the number of shares issued changed to 455,500,000 ordinary shares and
455,500,000 preferred shares. Since there were no transactions in the years 2023 and 2022 that had a dilutive
effect on the number of shares, diluted earnings per share correspond to the basic earnings per share.
Pursuant to article 28 (4) of the Articles of Association of Porsche AG, the preferred shareholders are entitled to an
additional dividend of €0.01 per preferred share above the dividend allocable to the ordinary share:
Global minimum taxation
Deferred tax assets of €3 million (2022: €3 million) were recognized without matching deferred tax liabilities. The
companies concerned can expect future tax benefits following losses in the current fiscal year or the prior year.
314
313
Consolidated Financial Statements Notes to the consolidated financial statements
As of the reporting date, deferred taxes totaling €305 million (2022: €719 million as a decrease in equity) were
recognized in the statement of financial position as a decrease in equity; these are allocable to income and
expenses recorded in other comprehensive income.
In the reporting year, reversals of impairments and impairments were recognized on deferred tax assets for
temporary differences of €1 million and €0 million, respectively (2022: reversals of impairments and impairments
of €2 million and €1 million, respectively).
In accordance with IAS 12.39, deferred tax liabilities were not recognized for temporary differences on
undistributed profits at subsidiaries of Porsche AG in the amount of €242 million (2022: €298 million) because
control is given.
312
Weighted average number of:
Ordinary shares-basic/diluted
Earnings after tax
Non-controlling interests
€ million
7
0
€ million
4,967
5,157
Preferred shares-basic/diluted
€ million
Shares
Shares
2022¹
2023
Earnings per ordinary share-basic/diluted
Earnings per preferred share-basic/diluted
thereof basic/diluted earnings attributable to ordinary shares
thereof basic/diluted earnings attributable to preferred shares
Earnings attributable to Porsche AG shareholders
455,500,000 455,500,000
455,500,000 455,500,000
Consolidation
Offsetting
Gross value
1,512
23
19
496
642
2
1,535
2
3
0
1
0
145
385
Unused tax loss carryforwards and tax credits
Provisions for pensions and similar obligations
Liabilities and other provisions
67
32
2,237
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
1,607
2,010
742
627
Amount recognized in the consolidated
statement of financial position
-1,763
71
-1,990
104
384
380
-1,763
-1,990
3,298
3,896
2,120
4,960
45
Changes in consolidated group
0
6,859
1,569
1,455
Balance at Jan. 1, 2022
10,793
7,315
0
1,782
Balance at Jan. 1, 2023
Depreciation and impairment
Depreciation and impairment
19,717
1,230
9,039
1,696
2,903
9,883
-13
14
Changes in consolidated group
0
0
0
Changes in consolidated group
Foreign exchange differences
-1
0
-1
Foreign exchange differences
-17
-3
0
0
10
6,544
21,322
0
8
16
Classified as held for sale
Classified as held for sale.
-1
24
-478
105
322
Transfers
178
-401
332
50
Balance at Dec. 31, 2022
Disposals
30
1,381
9,951
3,186
6,803
Balance at Dec. 31, 2023
478
70
8
41
108
Disposals
322
5
217
321
3
26
Additions
1,782
1,696
Balance at Dec. 31, 2022
383
0
302
7,315
35
Disposals
277
11,927
7,998
2,008
1,922
Balance at Dec. 31, 2023
46
205
10,793
Carrying amount at
Consolidated Financial Statements Notes to the consolidated financial statements
Government grants of €25 million (2022: €20 million) were deducted from the cost of property, plant and
equipment.
8,924
1,230
1,725
1,121
Carrying amount at
4,848
9,394
1,381
1,953
1,179
4,881
Dec. 31, 2023
Dec. 31, 2022
23
49
Disposals
0
0
impairment losses
Additions to cumulative
Additions to cumulative
1,272
impairment losses
759
280
Additions
1,315
780
248
286
233
5
5
Transfers
9
3
5
Classified as held for sale
Classified as held for sale
0
0
-2
1
1
Transfers
113
112
1
1
121
0
125
1,473
Transfers
1
1
impairment losses
Additions to cumulative
1,355
-2
959
amortization
Additions to cumulative
0
0
Changes in consolidated group
To determine whether goodwill as well as intangible assets are impaired, the group uses the value in use. For more
information on the general approach and key assumptions, please refer to the details in note → Accounting policies on
impairment testing.
396
Other intangible assets mainly comprise other acquired intangible assets, prepayments on intangible assets,
franchises, industrial and similar rights as well as licenses in such rights and assets.
-2
Disposals
4,550
3,025
960
Dec. 31, 2023
Carrying amount at
7,405
Classified as held for sale
1
5,452
1,952
Balance at Dec. 31, 2023
240
239
2
0
19
-1
Foreign exchange differences
2,454
1,740
-1,338
1,338
5
Transfers
341
Classified as held for sale
373
7,473
19
4,150
2,309
995
Dec. 31, 2022
Additions
-1
-
21
6,293
1
4,732
1,560
Balance at Jan. 1, 2023
Amortization and impairment
Disposals
264
15,959
4,551
8,477
2,911
Balance at Dec. 31, 2023
2
241
19
8,554
Consolidated Financial Statements Notes to the consolidated financial statements
317
0
0
Changes in consolidated group
8
1
0
0
0
Foreign exchange differences
-47
18,646
993
9,016
2,629
7
6,008
Changes in consolidated group
16
716
299
194
263
Additions
1,796
67
558
193
243
Additions
94
7
3
802
Balance at Jan. 1, 2022
19,717
1,230
-1
Total
construction
fixtures
machinery
third-party land
Other equipment, Advance payments
furniture and and assets under
Development of property, plant and equipment from January 1 to December 31, 2022
Technical
equipment and
and buildings,
€ million
Development of property, plant and equipment from January 1 to December 31, 2023
14. PROPERTY, PLANT AND EQUIPMENT
318
↑↓ ↑ ||
incl. buildings on
€ million
Land, land rights
and buildings,
incl. buildings on
-6
-1
-39
Foreign exchange differences
9,039
2,903
6,544
Balance at Jan. 1, 2023
Cost
Cost
Total
construction
Other equipment, Advance payments
furniture and and assets under
fixtures
Technical
equipment and
machinery
third-party land
Transfers
319
Non-expiring tax loss carryforwards
Dec. 31, 2023
4,877
external customers
Sales revenue from
Structure of the group's sales revenue 2023
Porsche AG
Group
revenue
8,779
world
Rest of the Hedges sales
North
America'
without
Germany
Germany
1. SALES REVENUE
Europe
China²
NOTES TO THE INCOME STATEMENT
11,969
5,781
Automotive
2 incl. Hong Kong
1 excl. Mexico
22,138
151
135
9,547
4,398
17,115
plant and equipment and
lease assets
Intangible assets, property,
€ million
40,530
-424
339
Financial
services
€ million
306
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Consolidated profit before tax
Financial result
Operating profit
Consolidation
Segment profit (operating profit)
2023
Group sales revenue
€ million
Reconciliation
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
1
3,661
ज
Segment sales revenue
Consolidation
By region 2023
2022'
37,891
-253
↑↓ ↑ |||
305
Consolidated Financial Statements Notes to the consolidated financial statements
308
7,081
7,375
91
40,793
-264
6,772
7
44
6,766
7,241
37,637
40,530
7,284
Total
segments Reconciliation
Porsche AG
Group
40,793
3,444
37,349
Porsche AG
Group
revenue
Rest of the Hedges sales
world
-264
China³
2,671
-19
2,690
16
2,674
Other revenue
North
America²
Europe
without
Germany
40,530
external customers
161
4,070
304
15,580
lease assets
plant and equipment and
Sales revenue from
Intangible assets, property,
-1,290
4,566
11,764
10,576
7,379
4,643
37,637
Germany
€ million
-424
2,992
1,577
1,415
Used vehicles and third-party products
1,949
0
-90
1,950
Genuine parts
31,646
-87
31,733
31,733
Vehicles
1,950
2,903
Rental and leasing business
1
-424
-424
Hedges sales revenue
439
−11
450
450
0
financial services business
By region 2022¹
Interest and similar income from
1,345
-57
1,401
1,401
15
136
3,645
3,593
In the Porsche AG Group, the segment result is determined on the basis of the operating profit after tax.
Reconciliation includes consolidation between the segments.
The purchase price allocation from acquired companies is directly allocated to the corresponding segments.
The activity of the financial services segment comprises customer and dealer financing, the leasing business as
well as mobility services and other finance-related services.
The activities of the automotive segment cover the development, manufacturing and sale of vehicles as well as
related services.
The segments are based on the internal management and reporting within the Porsche AG Group. This takes into
account the group objectives and policies set by the Executive Board of Porsche AG. Segment reporting is made up
of the two reportable segments automotive and financial services.
SEGMENT REPORTING
Investments in intangible assets and property, plant and equipment are reported net of investments in right-of-use
assets from leases.
304
303
Consolidated Financial Statements Notes to the consolidated financial statements
Significant accounting judgments and estimates were based in particular on assumptions relating to the
development of the general economic environment, the automotive markets and the legal environment. These as
well as further assumptions are explained in detail in the report on expected developments, which forms part of the
combined management report.
The Porsche AG Group's planning is based on the assumption that global economic output in 2024 will grow
overall, albeit at a slower pace. The persistently high inflation in many regions and the resulting restrictive
monetary policies taken by central banks is expected to have an increasingly negative impact on private demand.
Risks also continue to arise from protectionist tendencies, turbulence in the financial markets as well as structural
deficits in some countries. In addition, growth prospects will be negatively impacted by ongoing geopolitical
tensions and conflicts. Risks are posed in particular by the Russia-Ukraine conflict as well as tensions in the Middle
East. Furthermore, it is expected that both the advanced economies and emerging markets will record positive
growth on average, albeit with below-average GDP growth rates. It is also expected that the global economy will
recover in 2025 and continue on a stable growth path until 2028.
Following the slump in global economic output in 2020 and the incipient recovery due to base and catch-up
effects in 2021 and the continued normalization of economic activity in 2022 despite the Russia-Ukraine conflict,
the global economy showed positive growth of 2.7% overall in the fiscal year 2023 (prior year: growth of 3.0%).
The decline in momentum compared to the prior year was mainly due to weaker growth in the advanced
economies, while the rate of change in the group of emerging economies increased slightly overall.
Factors that may cause variances from the assumptions and estimates include new information about the buying
behavior in the sales markets and in response to this changes in planning, dependency on suppliers, in particular
exclusive suppliers, developments in exchange rates, interest rates and the prices of commodities as well as
environmental or other legal provisions. Where the development of these circumstances differs from the
assumptions and lies outside the control of management, the actual figures may differ from those originally
expected. In such cases, the underlying assumptions and, if necessary, the carrying amounts of the assets and
liabilities concerned, are adjusted accordingly.
↑ ↓ ↑ 0 |||
The assumptions and estimates are based on premises that are derived from the current information available. The
anticipated future business development was assessed by reference to the circumstances prevailing at the time of
preparing the consolidated financial statements and the realistically assumed future development of the global and
industry-specific environment. Since the future development of business is subject to uncertainty that cannot be
fully controlled by the Porsche AG Group, the assumptions and estimates continue to be subject to a high level of
uncertainty. This applies in particular to short- and medium-term forecast cash flows, the discount rates used and
forecast residual values.
The business relationships between the companies of the segments of the Porsche AG Group are generally based
on arm's length prices.
€ million
40,530
40,530
3,316
128
3,444
37,349
Total sales revenue
136
Reporting segments 2023
37,213
Group
Reconciliation
Porsche AG
Total
segments
Financial
services
Automotive
Sales revenue from external customers
Intersegment sales revenue
264
40,793
The recognition of government grants is based on an assessment as to whether there is reasonable assurance that
the group companies will fulfill the conditions attached the grant and they will in fact be awarded. This estimate is
based on the type of legal right as well as past experience.
Deviations from the assumptions made in the estimation process may cause differences to arise compared to the
original estimates.
Determining the timing for the capitalization of development costs (carrying amount of the capitalized
development costs as of December 31, 2023: €7,575 million (2022: €6,459 million)) requires assumptions and
estimates of probabilities, particularly with respect to the technical feasibility of the development work and the
availability of adequate technical, financial and other resources such that the development can be completed and
the development work can be used or sold.
The review in January 2023 led to a reassessment and extension of useful lives for certain items of property, plant
and equipment. These adjustments are expected to positively affect the operating result by around €92 million in
2023 and by around €1.6 million in 2024. The lease term is determined in accordance with IFRS 16 based on the
non-cancellable period of the lease and an assessment of whether existing options to extend or terminate the lease
will be exercised. The determination of the lease term and the discount rates used affects the amounts to be
recognized for the right-of-use assets (carrying amount of right-of-use assets on December 31, 2023:
€982 million (2022: €997 million)) and the lease liabilities (carrying amount of lease liabilities on
December 31, 2023: €1,047 million (2022: €1,046 million)).
The estimation and determination of uniform group useful lives and depreciation methods for fixed assets
subject to wear and tear (carrying amount of franchises, industrial rights and other intangible assets on
December 31, 2023: €960 million (2022: €995 million); carrying amount of capitalized development costs for
products in use as of December 31, 2023: €3,025 million (2022: €2,309 million), carrying amount of property,
plant and equipment subject to wear and tear excluding factory and office buildings on December 31, 2023:
€3,132 million (2022: €2,846 million)) are based on past experience and are reviewed regularly. A change in
estimates results in an adjustment to the residual useful life and, if appropriate, an impairment loss.
The preparation of consolidated financial statements requires certain assumptions and estimates that have an
effect on the recognition, measurement and presentation of the assets, liabilities, income and expenses as well as
on the disclosures on contingent assets and liabilities of the reporting period. These assumptions, judgments and
estimates reflect all the information currently available. The assumptions and estimates relate to the following
principal matters:
Significant accounting judgments and estimates
Government grants for assets are deducted when determining the carrying amount of the asset and recognized in
profit or loss over the life of the depreciable asset by way of a reduced depreciation charge. Government grants
that compensate group companies for expenses incurred are generally recognized in profit or loss in the period and
allocated to those items in which the expenses to be compensated were incurred.
Testing the non-financial assets for impairment (particularly capitalized development costs) as well as investments
accounted for at equity or at cost and the measurement of shares not traded in an active market and options on
such shares (carrying amount of equity-accounted investments and other investments as of December 31, 2023:
€1,465 million (2022: €1,259 million)) requires assumptions with respect to the future cash flows during the
planning period and, possibly beyond it, as well as about the discount rate to be applied. The estimates required to
be made for the purpose of deriving the cash flows mainly relate to future market shares, growth in the respective
markets and the profitability of the products of the Porsche AG Group.
Government grants
Provisions for warranty claims are recognized upon sale of the related products.
Production-related expenses are recognized upon delivery or utilization of the service, while all other expenses are
recognized as an expense as incurred. The same applies for development costs not eligible for recognition as part
of the cost of an asset.
In the case of financial instruments measured at amortized cost, interest income and expenses are determined
using the effective interest rate.
Revenue is generally recorded separately for each business transaction. If two or more transactions are linked in
such a way that the commercial effect cannot be understood without reference to the series of transactions as a
whole, the criteria for revenue recognition are applied to these transactions as a whole. If, for example, loan or lease
agreements in the financial services segment are entered into at below market interest rates to promote sales of
new vehicles, revenue is reduced by the incentive arising from the agreement.
Sales revenue is generally measured at the price determined in the contract. If variable consideration (e.g., volume-
based bonuses) has been agreed in a contract, the large number of contracts means that revenue is generally
estimated using the expected value method. The most probable amount method may also be used in exceptional
cases. Once the expected sales revenue has been estimated, an additional check is performed to determine
whether there are uncertainties that make it necessary to reduce the revenue initially recognized in order to
effectively rule out the risk of subsequently adjusting that revenue downwards. Provisions for reimbursements
mainly result from dealer bonuses. In the case of multiple-element arrangements, the transaction price is allocated
to the various performance obligations under the contract on the basis of the relative stand-alone selling prices.
For reasons of materiality, the Porsche AG Group generally recognizes non-vehicle-related services at their stand-
alone selling price.
300
Cost of sales include the costs incurred to generate the sales revenue and the cost of goods purchased for resale.
This item also includes the cost of additions to warranty provisions. Research and development costs not eligible
for capitalization and amortization of development costs are likewise carried under cost of sales. Interest and
commission expenses incurred in connection with the financial services business are also reported in cost of sales.
Determining deferred tax assets (carrying amount of deferred tax assets as of December 31, 2023: €627 million
(2022: €742 million)) requires assumptions to be made concerning future taxable profit and the timing of the
realization of the deferred tax assets. Income tax items included in the statement of financial position whose
amount is uncertain are based on the best estimate of the expected tax payment.
In connection with the impairment testing of property, plant and equipment (carrying amount of property, plant
and equipment as of December 31, 2023: €9,394 million (2022: €8,924 million)) and leased assets (carrying
amount of leased assets as of December 31, 2023: €4,190 million (2022: €3,854 million)) judgments are made, in
particular, with regard to the determination of indicators that property, plant and equipment and leased assets are
impaired. The recoverability of the leased assets of the Porsche AG Group additionally depends in particular on the
estimate of the residual value of the leased vehicles after the end of the lease term as this constitutes a significant
portion of the expected cash inflows (please refer to the section on impairments of leased assets in note
→ 15. LEASED ASSETS).
In the absence of observable market values, the determination of the fair value of assets and liabilities acquired in a
business combination is based on recognized valuation techniques such as the license price analogy method or the
residual value method.
Transfer prices for intragroup business relationships are subject to tax law requirements in Germany and many
other countries. The provisions are based on the arm's length principle, which requires that business conditions
agreed between related parties must be the same as those that would have been agreed between third parties. To
ensure that this requirement is met and the associated transfer pricing risks are minimized, the Porsche Group tax
guidelines and the Volkswagen AG Group transfer pricing guideline apply to transfer pricing in the Porsche AG
Group. Where possible and appropriate, advance pricing arrangements (APAs) are also used to provide additional
legal certainty with regard to cross-border transfer pricing.
Tax provisions are measured on the basis of the most likely value at which the risk will materialize. If there are
multiple tax risks, the Porsche AG Group decides based on the merits of the individual case whether to account for
them individually or in groups, depending on which type of presentation is appropriate for assessing the extent to
which the tax risk will materialize. Impairment tests were performed when determining the deferred tax assets.
Tax provisions were recognized for potential future payments of tax arrears. Other provisions were recognized for
ancillary tax payments arising in this connection. These income tax items included in the statement of financial
position whose amount is uncertain are based on the best estimate of the expected tax payment.
Porsche AG and its subsidiaries have operations worldwide and are audited by local tax authorities on an ongoing
basis. Changes in tax legislation and court rulings and their interpretation by tax authorities in the respective
countries may result in tax payments that differ from the estimates made in the financial statements.
For an overview of other provisions and provisions from sales, see note → 27. NON-CURRENT AND CURRENT OTHER
PROVISIONS and for litigation see also note → 40. LITIGATION.
The accounting treatment and measurement of provisions (carrying amount of provisions as of
December 31, 2023: €8,698 million (2022: €7,744 million)) is also based on estimates of the amount and
probability of occurrence of future events as well as estimates of the discount rate. Experience or external
appraisals are also drawn upon where possible. The measurement of provisions for pensions (carrying amount of
provisions for pensions and similar obligations on December 31, 2023: €4,315 million (2022: €3,668 million)) is
additionally dependent on the estimated development of the plan assets. The assumptions underlying the
calculation of provisions for pensions and similar obligations are presented in note → 26. PROVISIONS FOR PENSIONS AND
SIMILAR OBLIGATIONS. Actuarial gains and losses from changes in measurement parameters are recorded directly in
equity and have no effect on the result presented in the income statement. Changes in estimates relating to the
amount of other provisions (carrying amount of other provisions as of December 31, 2023: €4,256 million (2022:
€3,909 million)) are always recognized in profit or loss. Provisions are regularly adjusted to take account of new
information. Due to the use of expected values, it is often the case that unused provisions are reversed or that
subsequent additions are made to provisions. Similarly to the expenses for recognizing new provisions, income
from the reversal of provisions is largely allocated to the respective functions. Warranty claims from sales
transactions are calculated on the basis of losses to date, estimated future losses and the policy on ex gratia
arrangements. Individual technical risks identified are recorded separately. This requires assumptions to be made
about the nature and extent of future cases relating to guarantee, warranty and goodwill payments. For the
provisions recognized, assumptions were made in particular in relation to working hours, material costs and hourly
wage rates depending on the series, model year and country concerned. These assumptions are based on qualified
estimates. The estimates rely on external data, taking into account additional information available internally such
as experience relating to the parameters mentioned.
For more information on impairment testing and on the measurement parameters used please refer to the
explanations on impairment testing above.
expected to be completed before the end of the fiscal year 2024 due to the changes in external conditions. For the
fair value of the disposal group held for sale please see in particular note → IFRS 5 - Assets held for sale.
↑↓ ↑ ||
301
Consolidated Financial Statements Notes to the consolidated financial statements
Since September 2022, Porsche AG still intends to sell the Russian subsidiaries of Porsche AG. The sale project is
Testing financial assets for impairment requires estimates concerning the amount and probability of occurrence of
future events. As far as possible, the estimates are arrived at on the basis of current market data as well as rating
grades and scoring information based on experience. Further details on calculating loss allowances can be found in
note → 36. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS.
The designation of hedging instruments for hedge accounting requires in particular assumptions and estimates
with respect to the underlying probabilities that revenue will be generated in the future from hedged currencies
and with respect to the interest rates and the course of financing. The carrying amounts concerned are presented
in the statement of changes in equity.
302
-264
-264
40,530
7
6,766
341
6,425
Segment profit (operating profit)
37,637
6,772
-253
37,637
37,637
253
37,891
3,292
34,599
Total sales revenue
3,191
101
-253
152
Depreciation and amortization
895
and property, plant and equipment
Investments in intangible assets
162
162
162
Reversal of impairment losses
2,296
145
140
5
Impairment losses
3,159
-32
3,191
145
34,446
Sales revenue from external customers
Intersegment sales revenue
Porsche AG
Group
2
Impairment losses
3,504
-34
3,537
883
160
2,654
7,284
44
7,241
302
6,938
Segment profit (operating profit)
Depreciation and amortization
162
162
Reversal of impairment losses
segments Reconciliation
Total
Financial
services
Automotive
€ million
Reporting segments 20221
4,097
19
4,078
33
4,045
Investments in intangible assets
and property, plant and equipment
137
137
137
53
Dec. 31, 2022¹
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
3
-130
Net interest on the net defined benefit liability
-2
Interest result from discounting other non-current liabilities
-26
-34
-77
Interest expenses included in lease payments
-17
Other interest and similar expenses
-105
-184
Interest expense
151
-2
Interest result from discounting other non-current liabilities
Interest result
356
2022
2023
Other financial result
Gains and losses from fair value changes of hedging instruments/derivatives
not within in hedge accounting
Gains and losses from remeasurement and impairment of financial instruments
Realized expenses of loan receivables and payables in foreign currency
80
Realized income of loan receivables and payables in foreign currency
Other expenses from equity investments
Other income from equity investments
€ million
9. OTHER FINANCIAL RESULT
The decrease in the result of unwinding the discount on/discounting other non-current liabilities is mainly
attributable to interest rate developments.
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Income and expenses from securities and loans
37
310
Other interest and similar income
10
14
10
10
14
2022
23
2023
Income from other hedges mainly includes gains from marking to market derivative financial instruments used for
currency hedging in the automotive segment that are not designated in a hedging relationship. Foreign exchange
losses are included in other operating expenses.
Income from foreign exchange gains mainly comprises exchange rate gains between the date of origin and the date
of payment of foreign exchange receivables as well as foreign exchange gains from measurement as of the
reporting date. Resulting foreign exchange losses are included in other operating expenses.
1,894
1,496
352
265
Miscellaneous other operating income mainly consists of other recourse income.
264
17
23
461
264
Interest income
20221
2023
€ million
2
8. INTEREST RESULT
309
Consolidated Financial Statements Notes to the consolidated financial statements
↑↓ ↑
-7
-9
15
310
-47
-62
83
2023
€ million
Reconciliation of estimated to recognized income tax
↑↓ ↑ 0 |||
311
Consolidated Financial Statements Notes to the consolidated financial statements
2022¹
As in the prior year, income relating to other periods largely relates to the USA in the current fiscal year.
The current tax expense was reduced by €2 million (2022: €1 million) as a result of the utilization of previously
unrecognized tax losses and tax credits and previously unrecognized temporary differences from prior periods.
2,114
2,218
185
231
-224
The decrease in taxes in other countries and at the same time the addition to the tax expense in Germany is caused
by a change in earnings and taxes from lower-taxed countries and higher-taxed countries, primarily Germany.
-51
The tax loss carryforwards as well as the lapse of previously unused tax loss carryforwards developed as follows:
Thereof unusable
Dec. 31, 2022'
Dec. 31, 2023
tax loss carryforwards
2,124
30.0
30.2
2,227
Previously unused
€ million
7,375
Effects of different tax rates
Expected income tax expense
Group tax rate in %2
Profit before tax
tax loss carryforwards
7,081
409
283
-10
Income tax includes the tax income and expense determined for Porsche AG including the tax allocations of the tax
group subsidiaries of Porsche AG as well as the tax income and expense of the consolidated subsidiaries, which
themselves owe taxes, as well as deferred taxes.
10. INCOME TAX
Other income from equity investments contains a reversal of impairment on the investment in Bertrandt AG
accounted for using the equity method of €27 million as well as changes in value of other equity investments
measured at fair value of €3 million (2022: €18 million). In the prior year, the impairment loss on the investment in
Bertrandt AG accounted for using the equity method of €45 million as well as changes in value of other equity
investments measured at fair value of €16 million were included in other expenses from equity investments.
-40
19
31
Composition of tax income and expense
-39
-61
-32
78
25
གླ[8/8」
-99
64
€ million
Current tax expense, Germany
Current tax expense, other countries
Current income tax expense
-17
1,929
1,987
501
375
1,428
1,612
2022¹
2023
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Income tax income/expense
Deferred tax income (-)/expense (+)
Deferred tax income (-)/expense (+), other countries
Deferred tax income (-)/expense (+), Germany
of which prior-period income (-)/expense (+)
Miscellaneous other operating income
2 excl. Mexico
54
Other rental income
2,892
-17
2,911
35
3,292
2,875
34,599
Other revenue
37,891
-1,290
-1,290
Hedges sales revenue
323
-2
325
325
-1,290
0
-253
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
4. ADMINISTRATIVE EXPENSES
Distribution expenses of €2,869 million (2022: €2,353 million) include non-staff overheads and personnel
expenses, depreciation and amortization charged in the distribution function as well as shipping, advertising and
sales promotion costs incurred.
3. DISTRIBUTION EXPENSES
Profit-related government grants in the fiscal year amounted to €9 million (2022: €41 million) and were generally
allocated to the corresponding function.
Cost of sales also contains interest expenses attributable to the financial services business amounting to
€147 million (2022: €90 million), impairment losses on leased assets amounting to €160 million (2022:
€140 million) and expenses for indemnification payments from warranty insurance for used vehicles amounting to
€107 million (2022: €77 million).
Cost of sales amounted to €28,924 million (2022: €27,089 million and mainly comprises production materials,
personnel expenses, non-staff overheads and depreciation and amortization.
37,637
2. COST OF SALES
↑↓ ↑
307
Consolidated Financial Statements Notes to the consolidated financial statements
The vast majority of the sales revenue expected from orders as of the reporting date relate to vehicle sales. The
resulting sales revenue will be recognized in the short term. The services included in these vehicle sales that do not
lead to sales revenue until subsequent years make up only an insignificant portion of expected sales revenue. Use is
therefore made of the practical expedient pursuant to IFRS 15, according to which a quantified order backlog as of
the reporting date is not disclosed on account of the short-term nature and lack of informative value.
Of the sales revenue recognized in the reporting period, an amount of €733 million (2022: €789 million) was
included in contract liabilities as of January 1, 2023. In addition to existing performance obligations from long-
term construction contracts, the majority of performance obligations that were unsatisfied as of the reporting date
relate to mobile online services and vehicle deliveries, most of which are expected to be satisfied or for which sales
revenue is expected to be recognized by December 31, 2024.
Other revenue mainly contains income from mobile services, consulting, development services and workshop
services. In addition, other revenue contains insurance premiums from warranty insurance for used vehicles of
€121 million (2022: €117 million).
308
Administrative expenses of €1,787 million (2022: €1,655 million) mainly contain non-staff overheads and
personnel expenses as well as depreciation and amortization charged in the administrative function.
financial services business
1,293
29,947
Vehicles
Group
segments Reconciliation
Porsche AG
Total
29,947
Financial
services
€ million
20,251
Structure of the group's sales revenue 20221
The allocation of interregional intragroup transactions regarding the segment assets is presented uniformly
according to economic ownership.
Sales revenue is allocated to the regions in accordance with the destination principle.
incl. Hong Kong
Automotive
Interest and similar income from
-103
Genuine parts
-33
1,326
1,325
1
Rental and leasing business
2,813
29,844
-98
1,607
1,305
Used vehicles and third-party products
1,761
0
1,761
2,912
5. OTHER OPERATING INCOME
Other operating income breaks down as follows:
€ million
306
157
Income from derivatives within hedge accounting
of which from associates
93
111
Share of losses of equity-accounted investments
Income from reversal of provisions and accruals
34
30
Income from reversal of valuation allowances on receivables and other assets
Share of profits of equity-accounted investments
2022
2023
of which from joint ventures
€ million
Income from derivatives not within hedge accounting financial services segment
47
165
139
Gains on asset disposals and the reversal of impairment losses
300
280
Income from cost allocations
7
310
Income from foreign exchange gains
of which from associates
233
231
Income from other hedges
of which from joint ventures
216
7. SHARE OF PROFIT OR LOSS OF EQUITY-ACCOUNTED INVESTMENTS
Miscellaneous other operating expenses consist principally of expenses for litigation costs and legal risks.
Expenses from other hedges primarily contain foreign exchange losses from marking to market derivative financial
instruments used for currency hedging in the automotive segment that are not designated in a hedging
relationship. Foreign exchange gains are reported in other operating income.
Expenses from derivatives not within hedge accounting financial services segment
Expenses from other hedges
291
94
Expenses from derivatives within hedge accounting
70
54
15
Valuation allowances on other receivables and other assets
11
Valuation allowances on trade receivables
2022
2023
€ million
6. OTHER OPERATING EXPENSES
7
3
148
178
of foreign exchange receivables. The resulting foreign exchange gains are included in other operating income.
Foreign exchange losses mainly contain exchange rate losses between the date of origin and the date of payment
1,662
1,162
431
359
243
70
Financial share of company pension scheme
Miscellaneous other operating expenses
59
38
Losses on disposal of non-current assets
380
373
Foreign exchange losses
60
↑↓ ↑
1,761
817
51
Payroll trend
Net liability recognized in the statement of financial position at December 31
4,314
3,667
is 0.5
percentage
points higher
4,494
50
0.85
-5.28
Longevity
is 0.5
percentage
points lower
increases by
one year
4,426
-0.68
3,755
-7.29
3,813
4,560
Employee contributions and deferred compensation
3,612
4,221
8.57
Pension trend
1
is 0.5
percentage
points higher
4,687
5.19
-11.69
3,968
-3
Foreign exchange differences from foreign plans
-1
2
is 0.5
percentage
points lower
4,248
-4.68
-0.51
12.15
2.33
-3.57
No quoted
prices in
in active
Total
markets
active
markets
Total
Cash and cash equivalents
Quoted prices
Equity instruments
2022
Debt instruments
Equity funds
Pension funds
Real estate funds
Other funds
3,377
247
19
3,927
No quoted
prices in
active
markets
Quoted prices
Consolidated Financial Statements Notes to the consolidated financial statements
331
↑↓ ↑ ||
332
Each of the sensitivity analyses presented considers the change in one assumption at a time, leaving the other
assumptions unchanged versus the original calculation, i.e., possible correlation effects between the individual
assumptions are not taken into account.
To analyze the sensitivity of the present value of the defined benefit obligation to a change in the assumed
longevity, the mortality rates assumed in the comparative calculation have been reduced to the extent that doing
so increases life expectancy by approximately one year.
The weighted average duration (the Macaulay duration) of the defined benefit obligation based on the present
values of the obligation is 23 years (2022: 22 years).
in active
markets
The present value of the defined benefit obligation is attributable as follows to the members of the plan:
Active members with pension entitlements
Members with vested entitlements who have left the company
Pensioners
2023
Plan assets are invested in the following asset categories:
€ million
Dec. 31, 2023
Dec. 31, 2022
€ million
4,997
-18.78
3,406
2022
1
-6
-3
0
2
50
2023
51
3,781
The actuarial losses from changes in financial assumptions primarily result from the change in the discount rate in
Germany. In the prior year, the increase in the discount rate from 1.4% to 3.6% resulted in actuarial gains of
€2,426 million, while the change in the pension increase from 1.7% to 2.2% had the opposite effect and reduced
the actuarial gains by €164 million.
Changes in the relevant actuarial assumptions would have had the following effects on the defined benefit
obligation:
-6
Net liability recognized in the statement of financial position at January 1
Current service cost
3,667
5,525
4,456
167
€ million
Employee contributions and deferred compensation
1
-63
-58
-5
-4
-1
-4
Present value of obligations at December 31
These disclosures are averages that were weighted using the present values of the defined benefit obligations.
With regard to life expectancy, the latest mortality tables are used in all countries. The discount rates are generally
determined based on the return on high-quality corporate bonds whose terms and currency match the respective
obligations. The iBoxx AA Corporate Bond index was used as a basis for the obligations pertaining to the group's
entities in Germany. Comparable indices are used for foreign pension obligations.
The pension trends correspond to either the contractually agreed guaranteed adjustments or are based on the rules
applicable locally in each country for pension adjustments.
The following table shows changes in the net defined benefit pension liability recognized in the statement of
financial position:
Employee contributions to plan assets
Pension payments from company assets
Pension payments from plan assets
Past service cost (including plan curtailments)
Gains (-) or losses (+) arising from plan settlements
Changes in consolidated group
Other changes
Foreign exchange differences from foreign plans
The payroll trends cover expected wage and salary increases, which also include increases attributable to career
development.
320
Net interest expense
130
-27
-17
1
0
-63
-58
-4
Other changes
Dec. 31, 2023
€ million
change in percent
€ million
change in percent
is 0.5
percentage
points higher
is 0.5
percentage
points lower
3,998
-10.28
Dec. 31, 2022
Changes in consolidated group
Gains (-) losses (+) from plan settlements
Past service cost (including plan curtailments)
77
Actuarial gains (-)/losses (+) arising from changes in demographic assumptions
Actuarial gains (-)/losses (+) arising from changes in financial assumptions
1
866
377
-2,323
Present value of defined benefit obligation if
Actuarial gains (-)/losses (+) arising from experience adjustments
Income/expenses from plan assets not included in interest income
18
71
-1
47
Discount trend
Employer contributions to plan assets
Employee contributions to plan assets
Pension payments from company assets
2,836
Other
203
832
393
The figures above are generally included in the personnel costs of the functional areas in the income statement; net
interest on the net defined benefit liability is recognized in interest expenses.
Consolidated Financial Statements Notes to the consolidated financial statements
333
↑↓ ↑O ||
334
27. NON-CURRENT AND CURRENT OTHER PROVISIONS
297
€ million
from sales
Employee
expenses
Litigation and
legal risks
Miscellaneous
provisions¹
Total¹
Balance at Jan. 1, 2023
1,725
Obligations arising
893
-4
77
17
1
1
-4
0
0
-1
-1
142
The investment of plan assets to cover future pension obligations resulted in income of €6 million (2022: expenses
of €44 million).
In the next fiscal year, employer contributions to plan assets are expected to amount to €22 million (2022:
€32 million).
2023
2022
167
320
130
113
79
1,213
3,909
2,799
Transfers
41
-41
Unwinding of discount/effect of
change in discount rate
-17
695
17
-3
Reversals
58
16
23
100
197
-3
15
732
1,356
Foreign exchange differences
-16
-2
-1
-4
-24
Changes in consolidated group
1
1
Classified as held for sale
Utilization
1,011
613
21
585
2,229
Additions/New provisions
-47
2
3
26-2-500
29
4
4
4
4
38
38
29
22
1
0
1
0
0
1
142
22
0
34
20
741
Fair value of plan assets
4,456
3,781
89553
8
14
34
14
20
20
5
4
4
35
20
19
142
113
0
Net interest on the net defined benefit liability
Past service cost (including plan curtailments)
Gains (-) or losses (+) arising from plan settlements
Net income (-) and expenses (+) recognized in profit or loss
2023
2022
Fair value of plan assets at January 1
Current service cost
113
Employer contributions to plan assets
27
Employee contributions to plan assets
Pension payments from plan assets
Other changes
Foreign exchange differences from foreign plans
Fair value of plan assets at December 31
Interest income on plan assets determined using the discount rate
Income/expenses from plan assets not included in interest income
3,781
4,456
3,372
113
A maturity profile of payments under defined benefit obligations is presented in the following based on an
allocation of the present value of the obligation to the maturity of the underlying payments:
€ million
2023
2022
Payments due within the next fiscal year
Payments due between two and five years
Payments due in more than five years
The table below shows the development of plan assets:
€ million
38% of plan assets are invested in assets in the United Kingdom (2022: 43%), 34% are invested in assets in the
USA (2022: 38%), 18% are invested in assets in Germany (2022: 8%) and 10% are invested in assets in
Switzerland (2022: 11%).
The following amounts were recognized in the income statement:
€ million
82
81
379
328
3,995
144
Balance at Dec. 31, 2023
71
Actuarial gains(-)/losses (+) arising from experience adjustments
78
1,157
728
100
829
The reduction in miscellaneous financial assets mainly related to the reversal of investments of surplus liquidity in
the form of loan receivables in the amount of €2,800 million as of December 31, 2022 from Volkswagen AG and in
the amount of €798 million from Volkswagen International Belgium S.A.
In addition, the miscellaneous financial assets include restricted cash in the amount of €331 million (2022:
€285 million). This relates to collected customer payments for receivables sold under asset-backed securities
programs, which have to be passed on to the contracting partners in a timely manner, as well as collateral in
connection with vehicle financing.
1,079
No significant valuation allowances were recognized for miscellaneous financial assets. The maximum default risk
corresponds to the net carrying amounts of miscellaneous financial assets.
Miscellaneous receivables include prepaid expenses of €204 million (2022: €199 million). These are primarily
attributable to rent and marketing expenses, as well as prepaid maintenance costs for hardware and software.
The current other receivables are mainly non-interest-bearing.
Other receivables include contingent receivables under long-term construction contracts recognized in application
of the percentage of completion method. They correspond to the contract assets from contracts with customers,
and developed as follows:
€ million
2023
2022
€ million
The positive fair values of derivative financial instruments relate to the following items:
Contingent construction contract receivables at Jan. 1
Additions and disposals
20
19
Miscellaneous receivables
457
78
534
312
100
397
412
20
1,422
5,484
753
6,237
Conditional receivables from long-term
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
construction contracts
19
3,432
0
Dec. 31, 2023
Change in valuation allowances
0
6
0
0
19
20
2023
13
2022
67
-33
-27
66
41
-47
-21
99
Dec. 31, 2022
20
Contract costs including outcome of the long-term construction contracts
thereof services billed to customers
Contingent construction contract receivables at Dec. 31
Transactions for hedging:
foreign currency and interest rate risk from future cash flows (cash flow hedges)
Hedging transactions (interest and currency)
1,215
606
1,215
606
Future receivables from long-term construction contracts
Advance payments received
The contingent receivables from long-term construction contracts break down as follows:
230
186
1,445
791
€ million
Further details on derivative financial instruments as a whole are provided in note → 36. FINANCIAL RISK MANAGEMENT
AND FINANCIAL INSTRUMENTS.
Assets related to derivatives not included in hedging relationships
397
603
0
1,669
1,531
4,676
2,251
6,345
2,349
6,580
661
1,538
1,494 2,154 2,119
4,382 5,920 5,816
Dec. 31, 2023
720
Dec. 31, 2022
481
325
387
4,839
4,362
49
29
400
333
Receivables from
finance leases
26
816
35
4,089
4,226
851
2,876
13
2,889
3,692
26
48
3,740
3,671
Receivables from
operating leases
5
5
5
26
3,620
51
244
1
5,947
Non-current Dec. 31, 2022
€ million
Positive fair value of derivative
financial instruments
Miscellaneous financial assets
631
1,379
2,010
813
Current
1,445
1,988
281
5,203
511
791
243 5,446
Other recoverable income taxes
603
609
Non-current Dec. 31, 2023
Current
Carrying amount
5,504
Of the total inventories reported as of the reporting date of €5,947 million (2022: €5,504 million), an amount of
€54 million (2022: €37 million) is recognized at net realizable value. Inventories of €24,959 million (2022:
€23,476 million) were expensed at the time revenue was recognized. The write-downs recognized in profit or loss
in the reporting period amounted to €21 million (2022: €113 million) and resulted from the remeasurement of
used vehicles. Reversals of impairment of €2 million (2022: €2 million) were recognized in profit or loss in the
reporting period, also resulting primarily from the remeasurement of used vehicles. Of the total amount of
Consolidated Financial Statements Notes to the consolidated financial statements
323
↑↓ ↑ 0 ||
324
20. NON-CURRENT AND CURRENT OTHER FINANCIAL ASSETS
€ million
Carrying amount
Carrying amount'
Current Non-current
Dec. 31,
2023
Current Non-current
Dec. 31,
2022
21. NON-CURRENT AND CURRENT OTHER RECEIVABLES
As of the end of the reporting period, other receivables break down as follows:
Carrying amount
19
20
Revenue from long-term construction contracts totals €298 million (2022: €177 million). Contracts and parts of
contracts billed to customers are presented within trade receivables. No material write-downs were recognized for
these.
Consolidated Financial Statements Notes to the consolidated financial statements
The risks mentioned above were reduced in these pension plans. The proportion of the total defined benefit
obligation attributable to pension obligations funded by plan assets will continue to rise in the future. The
significant pension plans in Germany are described in the following.
GERMAN PENSION PLANS FUNDED SOLELY BY RECOGNIZED PROVISIONS
The employer-funded pension plans are largely contribution-based plans with guarantees. In the case of
contribution based plans, an annual service cost dependent on income and status is converted into a lifelong
pension entitlement based on annuity conversion factors (guaranteed components). The annuity conversion
factors contain a guaranteed yield. At retirement, the pension components earned each year are added.
The employee-funded pension plans are largely contribution-based plans with guarantees. The annual service cost
(according to individual deferred compensation agreements) is converted to capital components by multiplying
them with age factors. A guaranteed yield is integrated in the age factors. At retirement, the pension components
earned each year are paid out-depending on the respective pension plan-as a lump sum, in multiple installments
or as a lifelong pension (by converting the capital for pension benefits into an annuity).
The present value of the guaranteed obligation increases as interest rates fall and is thus exposed to interest rate
risks.
If the respective pension system provides for lifelong pension payments, the companies bear the longevity risk.
This is accounted for by using the most recent mortality tables - the "Heubeck 2018 G" mortality tables - to
determine the annuity conversion factors and the present value of the guaranteed obligation; these tables already
reflect a future increase in life expectancy.
To reduce the inflation risk inherent in adjusting current pension payments by the inflation rate, a pension
adjustment that is not linked to inflation was introduced for pension obligations where this is legally permitted.
0
GERMAN PENSION PLANS FUNDED BY EXTERNAL PLAN ASSETS
Since the trust assets meet the IAS 19 criteria for classification as plan assets, they are offset against the
obligation.
The amount of the plan assets is exposed to general market risk. As a result, the investment strategy and its
implementation are therefore continuously monitored by the boards of Porsche Trust e.V., on which the companies
or rather the trustors are also represented. For example, investment policies are stipulated in the trustors'
investment guidelines with the aim of limiting market risk and its impact on plan assets. In addition, asset-liability
management studies are conducted if required, which ensure that the capital investment is in line with the
obligations that need to be covered. The trust assets are currently invested in a special fund, which in turn invests
partly in equity funds, partly in mixed funds.
Significant pension arrangements at the Porsche AG Group
The Porsche AG Group offers its employees benefits from a pension scheme for the time after their active working
life. A substantial part of the benefit obligations within the group are pension plans for employees in Germany that
are classified as defined benefit plans within the meaning of IAS 19 and that are generally covered by collective
agreements. The majority of these obligations are funded solely by provisions recognized in the statement of
financial position. These plans are now largely closed for new members. To reduce the risks associated with these
pension plans, in particular longevity, salary increases and inflation, new domestic defined benefit plans have been
introduced at the Porsche AG Group since 2022, whose benefits are funded by appropriate external plan assets.
Consolidated Financial Statements Notes to the consolidated financial statements
329
↑↓ ↑ ||
The pension plans funded by external plan assets are contribution-based, capital-market-oriented plans. In this
case, the contributions dependent on income and status plus a capital market yield form the pension capital, which
is generally paid out in a lump sum. The pension capital amounts to at least 80% of contributions made. For the
pension plans, contributions are made on an ongoing basis to a separate pool of assets that is administered in trust
by Porsche Trust e.V. and invested in the capital markets.
330
1
4,315
Funded status (net)
Present value of unfunded benefit obligations
Net liability recognized in the statement of financial position
thereof pension provisions
thereof other assets
Dec. 31, 2023
Dec. 31, 2022
3,668
150
-142
-113
8
14
4,306
3,653
4,314
3,667
128
Measurement of the provisions for pensions of the Porsche AG Group
The calculation of pension provisions was based on the following significant actuarial assumptions:
%
Interest expense
136
80
4.60
3.30
2.44
2.51
4.48
2.20
1.65
1.76
Actuarial gains(-)/losses (+) arising from changes in demographic assumptions
Actuarial gains(-)/losses (+) arising from changes in financial assumptions
1
-22
377
-2,323
2.20
4.15
3.60
3.20
Discount rate at December 31
Payroll trend
Pension trend
The development of the present value of the defined benefit pension obligations is attributable to the following
factors:
Germany
Abroad
€ million
2023
2022
2023
2022
2023
2022
Present value of obligations at January 1
Current service cost
3,781
5,669
167
320
Fair value of plan assets
18
Present value of funded benefit obligations
The following amounts were recognized in the statement of financial position for defined benefit plans:
235
87
87
235
627
862
87
235
742
Of the deferred tax assets, an amount of €602 million (2022: €719 million) relates to recognition and
measurement differences between IFRSS and the tax base that will reverse within a year.
23. SECURITIES AND TIME DEPOSITS
The securities serve to safeguard liquidity. They are short-term fixed-income securities and shares. The securities
are measured at fair value. Securities amounting to €0 million (2022: €1 million) have been furnished as collateral
for financial liabilities and contingent liabilities. The recipient of collateral has no original right of disposal or pledge
with respect to the furnished collateral.
24. CASH AND CASH EQUIVALENTS
€ million
Bank balances
Checks, cash-in-hand, bills and call deposits
829
Dec. 31, 2023
742
627
325
↑↓ ↑ ||
326
22. TAX ASSETS
€ million
Deferred tax assets
Tax receivables
742
Total
Carrying amount
Dec. 31,
Current Non-current
2023
Current Non-current
Dec. 31,
2022
627
Carrying amount
Dec. 31, 2022
1,647
4,173
Other reserves
The other reserves are the reserves for currency translation, for cash flow hedges (OCI I), for deferred hedging
costs (OCI II), for equity and debt instruments, and for equity-accounted investments.
The currency translation reserve is used to record exchange differences arising from the translation of the financial
statements of foreign subsidiaries. In addition, exchange differences from the translation of capital have been
reported in this reserve to allow the uniform recording of foreign currency effects within equity.
The cash flow hedge reserve (OCI I) is only used to record the designated effective portions of changes in the value
of hedging instruments. By contrast, the non-designated portions of changes in the value of hedging instruments
are accounted for through the reserve for deferred hedging costs (OCI II).
The reserve for equity-accounted investments is used to record the proportionate changes in equity-accounted
investments recognized in other comprehensive income.
Consolidated Financial Statements Notes to the consolidated financial statements
In the fiscal year 2023, Porsche AG's Annual General Meeting on June 28, 2023 passed a resolution on the
appropriation of the net retained profit for the fiscal year 2022, resulting in a distribution of €1.00 per ordinary
share and €1.01 per preferred share. This brought the total amount distributed to €916 million.
327
328
Non-controlling interests
Non-controlling interests in equity relate to 25% of the shares in Porsche Singapore Pte. Ltd, Singapore. The 25%
of the shares in Porsche Taiwan Motors Ltd., Taipei, recognized in the prior year were acquired in the fiscal year
2023.
26. PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
Provisions for pensions and similar obligations are recognized for benefits in the form of retirement, invalidity and
dependents' benefits payable under pension plans. The benefits of the group vary according to legal, tax, and
economic circumstances of the country concerned, and usually depend on the length of service and remuneration
of the employees.
Porsche AG Group companies provide both defined contribution plans and defined benefit plans. In the case of
defined contribution plans, the company makes contributions to state or private pension schemes based on legal or
contractual requirements, or on a voluntary basis. Once the contributions have been paid, there are no further
obligations for the group. Current contributions are recognized as expenses of the period concerned. In the
reporting period, expenses for state and private defined contribution plans within the Porsche AG Group amounted
to €280 million (2022: €259 million). Of that amount, contributions to the compulsory state pension system in
Germany amounted to €262 million (2022: €239 million).
In the case of defined benefit plans, a distinction is made between pensions funded by provisions and externally
funded pension plans. Pension provisions for defined benefit plans are primarily measured in accordance with
IAS 19 by independent actuaries using the internationally accepted projected unit credit method. The future
obligations are measured on the basis of the ratable benefit entitlements earned as of the reporting date. The
measurement takes into account, among other things, actuarial assumptions for the discount rates, payroll and
pension trends as well as longevity, which are calculated for each group company depending on economic
conditions. Remeasurements result from deviations of the actual development compared to the assumptions made
in the prior year, from changes in assumptions as well as income or expenses from plan assets, excluding amounts
included in net interest income or expenses. These are recognized directly in equity in the period in which they
were incurred taking into account deferred taxes.
↑↓ ↑ |||
It will be proposed to the Annual General Meeting of Porsche AG that, of the net retained profit of €3,420 million
(2022: €916 million), a total dividend of €2,100 million be distributed, i.e., €2.30 per ordinary share and €2.31 per
preferred share. Shareholders are not entitled to a dividend payment until a resolution has been taken by the
Annual General Meeting.
In accordance with section 58 (2) AktG, the dividend payment by Porsche AG is based on the net retained profits
reported in the annual financial statements of Porsche AG prepared in accordance with the German Commercial
Code.
Dividends and proposed dividend
1,316
2,403
5,820
3,719
Bank balances are held at various banks in different currencies and, among other things, include time deposits with
a term of less than 3 months. Balances with affiliated companies (cash pool) comprise overnight or short-term
deposits that are only subject to an immaterial risk of fluctuations in value.
25. EQUITY
The composition and development of equity and of non-controlling interests is presented in the statement of
changes in equity. Capital transactions involving a change in ownership interest relate to the acquisition of the
non-controlling interests in Porsche Taiwan Motors Ltd., Taipei.
The change from the distribution in kind in the form of a spin-off of assets presented as of December 31, 2022
and the other changes relate to the structural measures prior to the IPO presented in the prior year.
Subscribed capital
The subscribed capital of Porsche AG is composed of no-par value bearer shares. One share grants a notional share
of €1.00 in share capital. Porsche AG's share capital amounts to €911 million and is divided into 455,500,000 no-
par value ordinary shares and 455,500,000 no-par value preferred shares. Each share grants a notional share of
€1.00 in share capital. Compared to the ordinary shares, the preferred shares carry the right to an additional
dividend that is €0.01 higher than the ordinary shares, but are non-voting.
Of Porsche AG's ordinary shares, 75% is held by Porsche Holding Stuttgart GmbH less one ordinary share and 25%
by Porsche Automobil Holding SE, Stuttgart ("Porsche SE"), plus one ordinary share. Of the preferred shares, 75.8%
is indirectly held by Volkswagen AG via Porsche Holding Stuttgart GmbH and 24.2% is in free float.
The domination and profit and loss transfer agreement that was in place between Porsche Holding Stuttgart GmbH
and Porsche AG in the prior year ended on December 31, 2022.
Capital reserves
The capital reserves contain contributions from premiums and other capital contributions. In the reporting period,
they decreased by €0 million (2022: €-10,403 million) to €3,822 million (2022: €3,822 million).
Retained earnings
Retained earnings include the reserve for accumulated profits and the reserve for remeasurements from pension
plans.
The reserve for accumulated profits includes the profits earned in the reporting year and those earned by
consolidated subsidiaries in prior years and not yet distributed as well as transactions recognized within equity.
Changes in pension provisions recognized directly in equity are posted to the reserve for remeasurements from
pension plans.
€ million
2,020
-22
49
45
Carrying amount at Dec. 31, 2022
Balance at Dec. 31, 2022
Reversal of impairment losses
Additions
172
3
25
147
Balance at Jan. 1, 2022
Impairment losses
1,477
662
815
25
47
0
0
Raw materials, consumables and supplies
€ million
17. INVENTORIES
Other investments primarily comprise shares in affiliated companies measured at cost of €391 million (2022:
€274 million), shares in associates measured at cost of €193 million (2022: €139 million) and other equity
investments measured at fair value of €193 million (2022: €193 million).
Additions to equity-accounted investments amounted to €13 million in fiscal year 2023 (2022: €101 million).
Further details can be found under "Consolidated group".
The equity-accounted investments include associates amounting to €651 million (2022: €623 million) and joint
ventures amounting to €0 million (2022: €0 million).
1,259
636
623
As of the end of the reporting period, financial services receivables break down as follows:
19. NON-CURRENT AND CURRENT FINANCIAL SERVICES RECEIVABLES
The maximum default risk corresponds to the carrying amounts of the net receivables. The fair values of the trade
receivables essentially correspond to the carrying amounts due to the remaining terms. All trade receivables are
due in less than one year.
218
26
192
Balance at Dec. 31, 2022
Work in progress
-1
Dividends
related parties
-14
-14
0
Changes in consolidated group
Trade receivables from
third parties
Additions
1
1,058
338
720
Foreign exchange differences
Balance at Jan. 1, 2022
Cost
1
101
394
495
-2
5
-7
Changes recognized in profit or loss
23
22
1
Changes recognized directly in equity
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
82
82
Disposals
519
1,268
750
1,008
440
1,449
-1
Dec. 31, 2022¹
Finished goods and merchandise
Advance payments made
Of the deferred tax liabilities, an amount of €48 million (2022: €10 million) relates to recognition and
measurement differences between IFRSS and the tax base that will reverse within a year.
OTHER NOTES
33. STATEMENT OF CASH FLOWS
The statement of cash flows presents cash inflows and outflows from operating, investing and financing activities,
regardless of how they are classified in the statement of financial position.
The cash flow from operating activities is derived indirectly, starting from profit/loss before tax. The profit/loss
before tax is adjusted to eliminate non-cash expenses and income (primarily depreciation, amortization and write-
downs, the gain/loss from the disposal of assets and other non-cash items). Other non-cash expenses and income
primarily comprise measurement effects of financial instruments as well as changes in the fair value of hedging
instruments. Factoring in changes in working capital, which include changes in leased assets and changes in
receivables from financial services, results in the cash flow from operating activities.
Investing activities include additions to property, plant and equipment, and changes in equity investments, as well
as additions of capitalized development costs, investments in securities and time deposits as well as loans.
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Financing activities include outflows due to payments for profit transfers and dividend distributions and the
repayment of bonds, as well as inflows from capital increases, the issuance of bonds and changes in other financial
liabilities.
Cash flows from operating activities presented in the statement of cash flows include:
€ million
Interest paid
Interest received
Dividends received'
1 Dividends from joint ventures and associates as well as other equity investments.
The changes in the items of the statement of financial position from which the statement of cash flows is derived
are adjusted for non-cash effects. Changes in the items in the statement of financial position concerned can
therefore not be reconciled directly with the figures in the published consolidated statement of financial position.
1,838
1,607
231
1,607
1,607
Income tax provisions
156
Tax payables
Total
128
31
159
128
167
167
31
64
64
2,010
2,169
Dec. 31, 2023
Current rental and leasing assets
Dec. 31, 2022
189
Customer financing
Dealer financing
Receivables from
financing business
Dec. 31,
2022
Dec. 31,
2022
Current Non-current
Dec. 31,
2023
895
Dec. 31,
2023
Fair value
Carrying amount
Fair value
Carrying amount
€ million
Hedges on inventories
Current Non-current
49
944
3,039
107
3,146
230
3
The interest paid and received also contains the interest income and interest expenses from the financial services
segment reported in cost of sales or sales revenue.
€ million
Cash and cash equivalents as reported in the statement of financial position
Cash and cash equivalents classified as held for sale
Cash and cash equivalents as reported in the statement of cash flows
Dec. 31, 2023
Dec. 31, 2022
5,820
6
5,826
3,719
26
3,745
Consolidated Financial Statements Notes to the consolidated financial statements
339
3,934
312
592
4
Dec. 31, 2023
€ million
Total
Changes in consolidated group
Additions
Additions to cumulative impairment losses
Disposals
Reversal of impairment losses
6,121
Foreign exchange differences
1,010
Other equity
investments
Total
1,926
-63
Cost
Balance at Jan. 1, 2023
Equity-accounted
investments
Balance at Jan. 1, 2023
Depreciation and impairment
Balance at Dec. 31, 2023
Cost
Balance at Jan. 1, 2023
Foreign exchange differences
Changes in consolidated group
5,781
-194
16. EQUITY-ACCOUNTED INVESTMENTS AND OTHER EQUITY INVESTMENTS
0
Additions
Transfers
2,900
2
Development of equity-accounted investments and other equity investments from January 1 to
December 31, 2023
Disposals
2,367
815
Group entities in the financial services segment act as lessor, primarily leasing their own products.
662
0
-3
-2
Balance at Dec. 31, 2023
Carrying amount at Dec. 31, 2023
1,931
Changes recognized in profit or loss
0
-9
-22
4,190
Dividends
-2
-2
Balance at Dec. 31, 2023
-13
Changes recognized directly in equity
137
7
Foreign exchange differences
-2
-2
833
Changes in consolidated group
-4
-4
160
Additions
13
232
245
789
Disposals
7
1,477
Leased assets contain assets leased to customers under the terms of operating leases. Any impairment of leased
assets from these vehicle leasing contracts is recognized as an impairment loss (2023: €160 million (2022:
€140 million). Depending on the local circumstances and past experience from used vehicle sales, regularly
updated internal and external data on the development of residual values are included in the residual value
forecast.
Leased assets
€ million
140
Additions to cumulative impairment losses
847
Additions
0
Changes in consolidated group
Disposals
91
1,790
Balance at Jan. 1, 2022
5,781
2,395
-6
2,150
Foreign exchange differences
781
Reversal of impairment losses
162
investments
Other equity
Equity-accounted
investments
18. TRADE RECEIVABLES
inventories, leased vehicles returned amounting to €24 million (2022: €6 million) are pledged as security under
asset-backed securities transactions.
€ million
Development of equity-accounted investments and other equity investments from January 1 to
December 31, 2022
322
↑↓ ↑ ||
321
Consolidated Financial Statements Notes to the consolidated financial statements
3,854
1,926
Carrying amount at Dec. 31, 2022
Balance at Dec. 31, 2022
Depreciation and impairment
Balance at Dec. 31, 2022
Disposals
Transfers
31
218
26
192
Balance at Dec. 31, 2022
Reversal of impairment losses
Balance at Jan. 1, 2023
Additions
Impairment losses
Leased assets
€ million
Development of leased assets from January 1 to December 31, 2022
1,683
320
15. LEASED ASSETS
Development of leased assets from January 1 to December 31, 2023
31
2,010
27
31
Additions
0
287
Changes in consolidated group
Foreign exchange differences
5,744
Balance at Jan. 1, 2022
1,465
814
651
Carrying amount at Dec. 31, 2023
Cost
217
52
165
5
2,010
€ million
Dec. 31,
2022
337
326
663
of which current
of which non-current
886
839
629
672
220
1,141
2,778
Lease liabilities
113
934
1,047
79
329
299
1,488
79
1,213
3,909
ABS- refinancing
Debenture bonds
Liabilities to banks
3,104
4,316
7,420
2,791
3,490
6,282
304
957
1,260
229
1,260
106
893
940
72
336
29. TRADE PAYABLES
€ million
Trade payables
Dec. 31, 2023
Dec. 31, 2022
↑↓ ↑ ||
31. NON-CURRENT AND CURRENT OTHER LIABILITIES
3,490
3,490
2,899
2,899
€ million
The fair values of the trade payables essentially correspond to the carrying amounts due to the remaining terms.
All trade payables are due in less than one year.
As of the end of the reporting period, other liabilities break down as follows:
335
Consolidated Financial Statements Notes to the consolidated financial statements
Liabilities to banks are used for refinancing in the financial services business and, to a small extent, for current
financing. Depending on the currency, maturity and contractual terms and conditions, the nominal interest rate
varies from 0.24% and 4.43% (2022: 0.23% and 4.93%).
1,131
Other financial liabilities
61
61
1
1
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
3,880
6,537
10,417
3,464
6,016
9,480
Provisions for obligations arising from sales primarily concern warranty obligations and bonuses. The warranty
obligations in the Porsche AG Group mainly arise from product warranties granted for the vehicles it produces. The
provisions include both estimated expenses from legal and contractual guarantee claims as well as estimated
expenses for constructive warranties. The provisions are recognized taking account of the past or estimated future
claims pattern per series, model year and country. Individual technical risks identified are recorded separately. The
timing of the utilization of the warranty provisions depends on the occurrence of the guarantee/warranty claim and
can extend over the entire legal and constructive warranty period. Provisions for expected repair measures have
been recognized for the vehicles affected by the diesel issue, as described in note → 40. LITIGATION, and a
corresponding receivable due from AUDI AG has been recognized under other financial assets. Estimated expenses
for constructive warranties were taken into consideration for further customer and dealer measures relating to
these vehicles. The provisions for bonuses are intended to cover the cost of subsequent reductions in revenue
already realized.
ABS refinancing of €7,420 million (2022: €6,282 million) relates to transactions in connection with refinancing
the portfolio of lease and financing agreements. These are explained in more detail in note →36. FINANCIAL RISK
MANAGEMENT AND FINANCIAL INSTRUMENTS. The commercial papers and notes in the form of debenture bonds were
placed in different tranches with fixed and variable interest and have been partially repaid. The principal amounts of
the debenture bonds totaled €1,261 million (2022: €1,489 million).
1,046
1,725
Balance at Dec. 31, 2022
118
Balance at Jan. 1, 2022
1,665
850
173
660
3,348
Financial liabilities break down as follows:
Foreign exchange differences
1
0
0
7
Changes in consolidated group
0
5
28. NON-CURRENT AND CURRENT FINANCIAL LIABILITIES
67% of the other provisions is expected to result in cash outflows within one year, 26% in between one and five
years and 7% thereafter.
In addition, miscellaneous provisions contain a wide range of identifiable risks, price risks and uncertain obligations,
such as those stemming from product liability, measured according to the probability of their occurrence.
Depending on the jurisdiction concerned, this item also includes loss allowances for any instances of non-
compliance with statutory emissions limits. These were measured by, among other things, taking into account the
respective sales volume and the legally defined fee or the cost of acquiring emission rights from other
manufacturers. Synergies with other brands of the Volkswagen Group were utilized where possible by creating
emission pools. Also included as of the reporting date are supplier receivables in connection with the development
of inflation in the fiscal year, among other things.
Deferred tax liabilities
1,176
4,256
of which current
1,066
746
49
1,146
3,007
of which non-current
954
264
31
1,249
Provisions for personnel expenses are recognized principally for employee and management bonuses, long-service
awards, time credits, top-up amounts for phased retirement schemes, severance payments and similar obligations.
Provisions for legal and litigation risks primarily relate to the legal risks described in note → 40. LITIGATION.
Miscellaneous provisions include provisions amounting to €170 million (2022: €152 million) relating to the
insurance business.
8
-1
6
Classified as held for sale
€ million
Current
Non-current Dec. 31, 2023
Current
Non-current Dec. 31, 2022
Unwinding of discount/effect of
change in discount rate
-98
-53
-151
Reversals
22
21
23
53
2,630
30. NON-CURRENT AND CURRENT OTHER FINANCIAL LIABILITIES
825
674
6
0
1
0
7
Carrying amount
Carrying amount
Utilization
917
558
111
219
1,805
Additions/New provisions
1,098
33
As of the end of the reporting period, other financial liabilities break down as follows:
4,057
169
Carrying amount
Dec. 31, 2023 Dec. 31, 2022
Transactions for hedging:
foreign currency and interest rate risk from future cash flows (cash flow hedges)
Hedging transactions (interest and currency)
565
1,206
1,206
Liabilities related to derivatives not included in hedging relationships
103
79
667
1,285
Further details on derivative financial instruments as a whole are provided in note → 36. FINANCIAL RISK MANAGEMENT
AND FINANCIAL INSTRUMENTS.
2023
2022
Liabilities from advance payments received under contracts with customers at Jan. 1
Additions and disposals
€ million
The negative fair values of derivative financial instruments relate to the following items:
The item derivative financial instruments marked to market mainly comprises forward exchange transactions,
currency options and interest rate swaps.
Miscellaneous financial liabilities include liabilities from minority shareholders' call rights of €0 million (2022:
€174 million).
0
0
3,990
3,990
Miscellaneous financial liabilities
848
1,231
1,315
64
364
626
240
870
1,595
5,287
872
6,158
912
1,236
183
94
-222
1
-10
9
Consolidated Financial Statements Notes to the consolidated financial statements
337
↑↓ ↑ 0 |||
21
338
€ million
Carrying amount
Carrying amount¹
Current Non-current
Dec. 31,
2023
€ million
Current Non-current
32. TAX LIABILITIES
Stuttgart GmbH
-22
-141
Changes in consolidated group
-1
Classified as held for sale
-2
Foreign exchange differences
-32
-12
97
-96
Liabilities from advance payments received under contracts with customers at Dec. 31
1,315
This also includes liabilities from long-term construction contracts:
€ million
Cost of conversion including outcome of the long-term construction contracts
thereof services billed to customers
Future receivables from long-term construction contracts
Advance payments received
Dec. 31, 2023 Dec. 31, 2022
143
1,466
and from tax relief with Porsche Holding
565
904
9
-
9
223
2
225
283
5
288
253
169
422
255
143
398
1,795
737
1,908
734
2,642
The miscellaneous liabilities include deferred income. This comprises special rent payments of €336 million (2022:
€303 million) and other deferred income of €78 million (2022: €61 million).
Liabilities from prepayments received on account of orders match the contractual liabilities from contracts with
customers and are part of prepayments received on account of orders. These developed as follows:
Negative fair values of
derivative financial instruments
368
8
-
8
632
Current Non-current
Dec. 31,
2023
Current Non-current
Dec. 31,
2022
Carrying amount
Carrying amount
Current
Non-current Dec. 31, 2023
Current
Non-current Dec. 31, 2022
Payments received on account
of orders
562
299
1,466
582
1,315
Liabilities relating to
other taxes
social security
wages and salaries
Miscellaneous liabilities
407
4
411
627
4
733
Interest payable
2,532
667
16
654
13
631
1,285
13
Liabilities from profit/loss transfer agreement
€ million
16
Carrying amount
93
1,046
Total third-party borrowings
9,727
-781
267
4
100
9,480
1
Other financial assets and
liabilities
4
167
137
2265
Disposals
229
1,340
0
61
15
Balance at Dec. 31, 2022
Depreciation and impairment
Balance at Jan. 1, 2022
8
Classified as held for sale
76
00
15
-2
-
-2
-5
1,264
84
0
activities
Financial assets and
Balance at Jan. 1, 2022
1,211
11
63
Foreign exchange differences
4
0
Changes in consolidated group
0
-
Foreign exchange differences
Changes in consolidated group
Additions
3005
127
5
Cost
-1
Total
Right of use on
other equipment,
operational and
office equipment
liabilities in financing
9,731
-786
268
167
100
9,480
Other changes to lease liabilities largely include non-cash additions to lease liabilities.
34. IAS 23 (BORROWING COSTS)
Capitalized borrowing costs amounted to €113 million (2022: €58 million) in the fiscal year and related to
capitalized development costs. At the Porsche AG Group, an average borrowing rate of 3.4% (2022: 2.2%) was
used as the basis for capitalization.
35. IFRS 16 (LEASES)
35.1 Lessee accounting
The Porsche AG Group primarily acts as lessee with respect to leases of office premises, real estate and other
production resources. The leases are negotiated individually and include a wide range of contractual terms. Right-
of-use assets under leases are included in the following items in the statement of financial position:
Right of use on
land, land rights
and buildings incl.
buildings on third
party land
Right of use on
technical
equipment and
machinery
1,285
-1
to five years
25
Dec. 31, 2023
Total lease liabilities
Current financial liabilities
Non-current financial liabilities
€ million
Assignment of lease liabilities to the respective statement of financial position items
The tables below show how the lease liabilities are presented in the statement of financial position and give an
overview of their contractual maturities:
The measurement of right-of-use assets and the associated lease liability is subject to best estimates with regard
to the exercise of options to extend or terminate the lease. This estimate is updated if there are material changes in
circumstances or in the agreement.
Income of €5 million (2022: €5 million) was generated in the fiscal year from subleasing right-of-use assets.
342
↑↓ ↑
341
Consolidated Financial Statements Notes to the consolidated financial statements
997
31
Dec. 31, 2022
12
934
113
1,047
under one year
within one
Remaining contractual maturities
Lease liabilities at Dec. 31, 2022
Lease liabilities at Dec. 31, 2023
€ million
Maturity analysis of undiscounted lease liabilities
The following cash inflows are expected in the coming years from non-discounted expected lease payments
outstanding under operating leases:
Assets leased under long-term operating leases, which are recognized separately in the statement of financial
position as leased assets, amounted to €4,190 million as of the end of the fiscal year (2022: €3,854 million) and
primarily include vehicles of €4,190 million (2022: €3,854 million). Further explanations on the value development
of leased assets can be found in the section "Development of leased assets".
35.2.1 OPERATING LEASES
The Porsche AG Group fully accounts for the credit risk arising in respect of lease receivables by recognizing loss
allowances in accordance with IFRS 9. As lessor, the Porsche AG Group counters risks from assets underlying the
lease by taking into account, among other things, residual value guarantees received for parts of the lease portfolio
as well as forward-looking residual value forecasts on the basis of internal and external information in the context
of residual value management. The residual value forecasts are reviewed regularly.
The Porsche AG Group acts as lessor under both finance and operating leases. These relate primarily to vehicles.
35.2 Lessor accounting
1,046
106
940
30
954
344
Disposals
-1
-1
Classified as held for
130
13
1
116
Additions to cumulative depreciation
0
0
0
-1
0
257
33
Carrying amount at Dec. 31, 2022
0
41
30
4
310
Total
Figures as of December 31, 2023
€ million
Lease payments
2024
2025
2026
2027
2028
5
Balance at Dec. 31, 2022
over five years
8
-115
30
Lease liabilities'
1,047
132
-18
-113
1,046
Lease liabilities'
Classified as held for sale
1,950
-89
0
-91
-22
2,152
borrowings
Other total third-party
Disposals
154
64
11
Depreciation and impairment
Other financial assets and
1,394
58
14
1,323
Balance at Dec. 31, 2023
10,417
42
0
-299
1,194
9,480
Total third-party borrowings
76
1
liabilities
9
Additions
changes differences
Jan. 1, 2023
€ million
Foreign
exchange
Cash-
effective
Balance at
Total
Right of use on
other equipment,
operational and
office equipment
Right of use on
technical
equipment and
machinery
Right of use on
land, land rights
and buildings incl.
buildings on third
party land
Presentation of and changes in right-of-use assets from January 1 to December 31, 2023
€ million
Non-cash changes
Time deposits with contractual maturities of more than three months are not classified as cash equivalents. The
maximum default risk corresponds to the carrying amount of the cash and cash equivalents. The following table
shows the classification of changes in financial liabilities into cash and non-cash transactions:
340
Changes in
consolidated
group
145
Classified as
held for sale
Balance at
Dec. 31.
7,420
0
-190
1,329
6,282
ABS-refinancing
1,340
-23
0
61
15
1,264
-23
Foreign exchange differences
Balance at Jan. 1, 2023
Cost
2023
Other
changes
-1
1
0
Other
changes
Classified as
held for sale
group
Balance at
Changes in
consolidated
Foreign
exchange
differences
Cash-
effective
changes
Jan. 1, 2022
€ million
Balance at
Non-cash changes
Presentation of and changes in right-of-use assets from January 1 to December 31, 2022
982
27
10
Dec. 31,
946
2022
6,418
€ million
2,152
7
0
167
-28
-240
2,246
borrowings
Other total third-party
6,282
0
-1
290
-426
ABS-refinancing
412
31
4
12
1
117
Additions to cumulative depreciation
liabilities in financing
-8
0
-8
Foreign exchange differences
Financial assets and
344
From 2029
4
310
Balance at Jan. 1, 2023
131
activities
9,480
1,194
377
55
11
1
43
Carrying amount at Dec. 31, 2023
Balance at Dec. 31, 2023
1,063
Disposals
-
-
Classified as held for sale
10,417
42
0
-299
Other changes to lease liabilities largely include non-cash additions to lease liabilities.
Total
Net investment
471
-12
-11,887
3,961
Changes
-46
-54
Changes in consolidated group
Disposal due to spin-off
117
20,942
Carrying amount at Jan. 1, 2022
Foreign exchange differences
Total
Simplified
approach
Stage 3
Stage 2
Stage 1
-11,887
74
-
4,023
Stage 1
15
198
12,949
Carrying amount at Dec. 31, 2022
-26
Classified as held for sale
14
-14
Stage 3
155
-155
Stage 2
-5
-61
66
Transfers to
1,330
8
4
Carrying amount at Dec. 31, 2023
Classified as held for sale
Stage 3
Stage 2
Stage 1
Transfers to
-822
168
-26
-964
Changes
3
0
3
14,492
-268
11,620
125
284
1,487
0
22,304
1,246
18
99
25
36
-36
278
-278
-11
-183
194
€ million
13,405
14
-12
-27
14,492
Consolidated Financial Statements Notes to the consolidated financial statements
Carrying amount at Jan. 1
Foreign exchange differences
Changes in consolidated group
Changes
Carrying amount at Dec. 31
2,313
1,841
-37
-1
253
120
2,396
221
2,313
0
Transfers to
Stage 1
9
54
-5
10
☐ ☐
14
36
111
-1
0
0
0
00
-2
0
Disposal due to spin-off
Newly extended/purchased financial assets
(additions)
44
Other changes within a stage
0
10
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Stage 2
56
2022
2023
Simplified approach
€ million
Change in the gross carrying amounts of lease receivables
Total
Simplified
approach
Stage 3
Stage 2
Stage 1
€ million
Change in the loss allowance for financial assets measured at amortized cost
348
↑↓ ↑ ||
347
Carrying amount at Jan. 1, 2023
-6
Foreign exchange differences
50
-3
Stage 3
-28
Financial instruments derecognized
during the period (disposals)
-21
Utilization
28
-1
-9
-31
€ million
-27
-1
11
Changes in consolidated group
0
-9
-247
Lease income
€ million
Breakdown of income from operating leases
1,771
58
49
206
689
577
192
Total
From 2028
2027
2026
2025
Income from variable lease payments
2024
Total
2022
Dec. 31, 2023
Loss allowance on lease receivables
Unearned interest income
Non-discounted lease payments
Non-guaranteed residual value
€ million
Interest income on the net investment in the lease amounted to €119 million in the fiscal year (2022: €97 million).
The table below presents the reconciliation of outstanding lease payments from finance leases to net investment
value:
35.2.2 FINANCE LEASES
344
↑↓ ↑ 0 ||
343
Consolidated Financial Statements Notes to the consolidated financial statements
1,190
1,190
1,225
0
1,225
2023
Dec. 31, 2022
2023
269
Right-of-use assets were not recognized for short-term leases and leases of low-value assets. Expenses totaling
€38 million (2022: €40 million) were incurred for leases of low-value assets in the fiscal year. That figure does not
include expenses for short-term leases, which totaled €113 million in the fiscal year (2022: €92 million). Variable
lease expenses, which were not included in the measurement of lease liabilities, came to €2 million in the reporting
year (2022: €2 million).
Interest expenses of €38 million (2022: €30 million) were incurred for lease liabilities in the fiscal year.
€ million
1,470
1,473
905
429
866
454
150
139
Figures as of December 31, 2022
1,954
52
53
244
928
In the fiscal year, cash outflows of €304 million (2022: €278 million) were attributable to leases entered into as
lessee.
Lease payments
The table below gives an overview of potential future cash outflows not taken into consideration in the
measurement of lease liabilities:
Future cash outflows to which the lessee is potentially exposed
305
1
23
1
2
264
277
3
Total
Obligations under leases not yet commenced
Termination options
Extension options
Variable lease payments
2022
2023
€ million
279
2,328
271
2,204
346
↑↓ ↑ ||
345
Consolidated Financial Statements Notes to the consolidated financial statements
The credit and default risk arising from financial assets involves the risk of default by counterparties, and therefore
comprises at a maximum the amount of recognized carrying amounts against the respective counterparty. Default
risks in receivables are reduced by a strict receivables management system. Furthermore, the maximum credit and
default risk is reduced by collateral held. Collateral is primarily held for financial assets classified to the at
amortized cost category. Vehicles, collateral assignments, guarantees and cash are used as collateral. For level 3
financial assets with objective indications of impairment as of the reporting date the collateral provided led to a
reduction in risk by €8 million (2022: €4 million).
36.2 Credit and default risk
See also the explanations in the opportunities and risk report of the combined management report in section
→ Financial risk management and methods as well as opportunities.
The financial instruments entered into for hedging purposes can give rise to counterparty risks that may have a
negative impact on the net assets, financial position and results of operations. Channeling excess liquidity into
investments also exposes the group to counterparty risks. Partial or complete default by a counterparty would have
a negative impact on the net assets, financial position and results of operations. In order to manage these risks, the
Porsche AG Group has set out guidelines to ensure that transactions are concluded only in approved financial
instruments, only with approved counterparties and only on the admissible scale.
Derivative financial instruments and hedge accounting are mainly used to control currency, interest rate and
commodity price risks. Currency risks from future sales revenue denominated in foreign currencies are hedged
through the use of exchange rate hedging instruments for a period of up to five years. The main hedging
instruments used are forward exchange transactions and currency options. The volume of exchange rate hedges is
determined on the basis of the planned sales figures in the respective foreign currency, taking into account
procurement volumes. The interest rate risk from variable-rate financing and the interest rate risk from refinancing
the financial services business are largely hedged through the use of suitable derivatives such as interest rate
swaps. Commodity price risks are hedged for a period of several years using hedging instruments in the form of
averaging swaps. The counterparties for the exchange rate, interest rate and commodity price hedges are mainly
large national and international financial institutions and Volkswagen AG. Cooperation is subject to uniform
regulations and continuous monitoring.
The principles and responsibilities for managing and controlling the risks that could arise from financial
instruments are defined by the Executive Board and monitored by the Supervisory Board. Internal guidelines exist
within the Porsche AG Group that clearly define the risk management and control processes. These guidelines
regulate, among other things, the use of financial instruments or derivatives and the requisite control procedures,
such as a clear segregation of functions between trading and settlement. In addition, it is also stipulated that
financial transactions should always be based around the needs of the underlying transaction. Consequently,
financial transactions are not concluded for speculative purposes. The treasury department identifies, analyzes and
monitors risks group-wide. The underlying guidelines and the supporting systems are checked regularly and
brought into line with current market and product developments.
36.1 Hedging guidelines and financial risk management principles
Due to the international activities in the automotive and financial services segments, financial risks arise that affect
the net assets, financial position and results of operations of the Porsche AG Group. These risks are broken down
into market risks, credit and default risks and liquidity risks. The risks are regularly monitored, reported and
centrally managed using financial instruments. The primary aim of using financial instruments is to limit the
financial risk exposures in order to ensure the Porsche AG Group's ability to continue as a going concern and its
earnings power.
36. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
2,204
7
43
The counterparties to material cash and capital investments and to derivatives are national and international
financial institutions, as well as Volkswagen International Belgium S.A. and Volkswagen AG. Credit and default risk
is limited by a limit system that is primarily based on credit assessments of the counterparties. The maximum
amounts for default risk are presented in section → 36.2.3 MAXIMUM CREDIT RISK.
219
The global allocation of business activities and the resulting diversification meant that there were no material risk
concentrations at individual counterparties or counterparty groups in the fiscal year.
The Porsche AG Group applies the expected credit loss model under IFRS 9 on a uniform basis for all financial
assets, with the exception of financial assets measured at fair value through profit or loss, and for other risk
exposures.
1,330
15
198
12,949
Carrying amount at Jan. 1, 2023
Foreign exchange differences
Changes in consolidated group
Simplified
approach
Stage 3
Stage 2
Stage 1
€ million
Change in the gross carrying amounts of financial assets measured at amortized cost¹
The tables below present a reconciliation of gross receivables and loss allowances for the different classes of
financial assets.
The Porsche AG Group applies the simplified approach to trade receivables. The same applies to receivables from
operating or finance leases accounted for in accordance with IFRS 16. Under the simplified approach, expected
credit losses are consistently determined over the entire life of the asset.
Under the general approach, financial assets are allocated to one of three stages plus an additional stage for
financial assets that were already impaired when acquired (stage 4). Stage 1 comprises financial assets at initial
recognition or for which there has not been any significant increase in probability of default. Expected credit losses
for the next twelve months are calculated at this stage. Stage 2 comprises financial assets with a significant
increase in probability of default, and stage 3 comprises financial assets for which there are objective indications of
default. Lifetime expected credit losses are calculated in stage 2 to 4.
IFRS 9 differentiates between the general approach and the simplified approach. The expected credit loss model
under IFRS 9 comprises both loss allowances for financial assets where there are no objective indications of
impairment, as well as loss allowances for financial assets that are already impaired.
36.2.1 LOSS ALLOWANCE
517
636
782
2028
2027
2026
2025
2024
Lease payments
€ million
Figures as of December 31, 2023
The following payments are expected in the next few years from non-discounted expected lease payments
outstanding under finance leases:
2,180
2,256
-113
-120
-181
-231
From 2029
Total
865
663
Lease payments
43
Total
From 2028
2027
2026
2025
205
2024
€ million
Figures as of December 31, 2022
2,328
5
31
231
535
2023
Total
Simplified approach
0
Gains and losses from non-designated time value of options
Hedged item is recognized at a point in time
21
97
Reclassifications due to changes in whether the hedged item is expected to occur
Hedged item is recognized at a point in time
1
Reclassification due to realization of the hedged item
€ million
Interest rate risk
Currency risk
Interest rate/
currency risk
Commodity
price risk
Hedged item is recognized at a point in time
Balance at Dec. 31
35
-83
-12
-72
Total
-85
Balance at Jan. 1, 2023
-70
Development of the cash flow hedge reserve (OCI I) 2023
Deferred taxes
0
Total hedging combined interest rate and
currency risk
2
Hedging commodity price risk
Designated components
In general, changes in the fair value of the non-designated components of a derivative must likewise be
immediately recognized in profit or loss. An exception to this principle are fair value changes in the non-designated
time values of options, to the extent they relate to the hedged item. In addition, the Porsche AG Group initially
recognizes in OCI II changes in the fair value of the non-designated forward components of currency forwards and
non-designated cross-currency basis spreads (CCBS) on currency hedges used in cash flow hedging. This means
that the Porsche AG Group recognizes changes in the fair value of the non-designated components or parts thereof
immediately through profit or loss in the case of hedge ineffectiveness.
The tables below show an overview of the changes in the reserve for hedging costs resulting from the non-
designated portions of options and currency hedges.
Changes in the reserve for hedging costs-non-designated time value of options
Non-designated components
Deferred taxes
0
Currency risk
Total hedging commodity price risk
€ million
2023
2022
Changes in the reserve
The accounting treatment of cash flow hedges requires that the designated effective portions of hedges be
recognized in OCI I. Any excess changes in the fair value of the designated components are recognized through
profit or loss as hedge ineffectiveness. The table below shows the changes in the reserve:
Balance at Jan. 1
118
119
1
Consolidated Financial Statements Notes to the consolidated financial statements
357
↑ ↓ ↑ 0 |||
358
Changes in the reserve for hedging costs-non-designated forward components and cross-currency
basis spreads (CCBS)
€ million
Currency risk
2023
The table below shows the sensitivities as of December 31, 2023 with respect to the key currencies held.
€ million
2022
Dec. 31, 2023
+10%
Dec. 31, 2022
-10%
+10%
-10%
Exchange rate
EUR/USD
Balance at Jan. 1
938
-100
16
0
238
Gains or losses from effective hedging
relationships
-112
1,008
0
5
902
Reclassifications due to changes in
whether the
Non-designated components
hedged item is expected to occur
-102
Reclassifications due to realization of the
hedged item
4
-104
−1
Balance at Dec. 31, 2023
11
921
בוס
-102
1
2
Designated components
355
↑↓ ↑ |||
356
Disclosures on hedged items used in cash flow hedges 2022
Reserve for
Development of the cash flow hedge reserve (OCI I) 2022
Interest rate risk
Currency risk
Interest rate/
currency risk
Commodity
price risk
Total
€ million
Changes in fair value to
determine hedge
ineffectiveness
Discontinued
Active cash flow hedges
cash flow hedges
Balance at Jan. 1, 2022
12
Consolidated Financial Statements Notes to the consolidated financial statements
36
10
-3
1,022
183
288
-31
Combined interest rate and
currency risk hedging
Interest rate/currency swaps
32
2
2
-373
Hedging commodities price risk
The change in fair value presented in the table to calculate ineffectiveness corresponds to the change in fair value
of the designated components.
Total hedging combined interest rate and
currency risk
Hedging commodity price risk
Designated components
Non-designated components
Deferred taxes
Total hedging commodity price risk
0
10
9
Commodity forwards/swaps
-735
0
113
Balance at Dec. 31, 2022
118
119
1
-45
664
238
Hedging currency risk
Designated components
252
171
Non-designated components
-1,152
Deferred taxes
296
Total hedging currency risk
252
-685
Combined interest rate and
currency risk hedging
0
118
169
Total hedging interest rate risk
-134
1
-361
-20
Hedging interest rate risk
Designated components
Reclassifications due to changes in
whether the
169
Gains or losses from effective hedging
relationships
164
hedged item is expected to occur
-45
Non-designated components
Reclassifications due to realization of the
Deferred taxes
-45
hedged item
-7
672
0
-255
Gains and losses from non-designated forward components and CCBS
Hedging reserve
10
-10
0
0
0
0
EUR/KRW
Hedging reserve
130
-125
74
-74
Profit/loss after tax
-11
11
-18
18
EUR/CAD
109
-8
8
Profit/loss after tax
2
-2
2
-3
3
24
-23
24
-23
0
-110
0
1
17
72
-2
-18
802
21
-22
-2
-1
-118
Profit/loss after tax
03
9
-5
5
EUR/BRL
Hedging reserve
Profit/loss after tax
41
-41
19
-19
-14
14
-5
5
Consolidated Financial Statements Notes to the consolidated financial statements
359
↑↓ ↑
-28
Change in the loss allowance for lease receivables
-9
Profit/loss after tax
-65
66
138
-137
-5
5
EUR/JPY
Hedging reserve
Hedging reserve
93
-91
-3
84
Profit/loss after tax
-11
11
-9
9
EUR/AUD
Hedging reserve
50
-50
-82
262
152
112
ཀླY
-8
8
-4
4
Hedged item is recognized at a point in time
40
0
EUR/MXN
Balance at Dec. 31
-525
-734
Hedging reserve
23
-23
11
-11
Profit/loss after tax
-1
1
Profit/loss after tax
Reclassification due to changes in whether the hedged item is expected to occur
-70
70
787
-772
752
-785
Hedged item is recognized at a point in time
-148
-781
Profit/loss after tax
-18
0
18
35
Reclassifications due to realization of the hedged item
EUR/TWD
Hedged item is recognized at a point in time
317
302
Hedging reserve
65
-65
-35
-125
0
36.4.2 MARKET RISK IN THE AUTOMOTIVE SEGMENT
-77
77
1,013
-104
-1,024
104
EUR/CHF
Interest rate risk
Interest rate risk in the automotive segment results from changes in market interest rates, primarily for medium-
and long-term floating-rate receivables and liabilities. Floating-rate items are included in cash flow hedges and-
depending on the market situation-some are hedged by means of interest rate swaps.
In the automotive segment, interest rate risk within the meaning of IFRS 7 is calculated using sensitivity analyses.
The effect of risk-variable market interest rates on the financial result and equity are presented net of tax.
If market interest rates had been 100 bps higher as of December 31, 2023, profit after tax would have been
€31 million lower (2022: €18 million). If market interest rates had been 100 bps lower as of December 31, 2023,
profit after tax would have been €25 million higher (2022: €13 million).
Currency risk
The currency risk in the automotive segment results in particular from transactions as part of operating activities
that do not take place in the functional currency of the respective group company. Currency forwards and currency
options are the main instruments used to reduce currency risks. The volume of exchange rate hedges is
determined on the basis of the planned sales figures in the respective foreign currency, taking into account
procurement volumes.
In 2023, hedges were entered into in the following currencies as part of currency risk management: Australian
dollar (AUD), Brazilian real (BRL), British pound sterling (GBP), Canadian dollar (CAD), Chinese renminbi (CNY),
Hong Kong dollar (HKD), Indian rupee (INR), Japanese yen (JPY), Mexican peso (MXN), Norwegian krone (NOK),
Polish zloty (PLN), Singapore dollar (SGD), South Korean won (KRW), Swedish krona (SEK), Swiss franc (CHF),
Taiwan dollar (TWD), and US dollar (USD).
All non-functional currencies in which the Porsche AG Group enters into financial instruments are included as
relevant risk variables in the sensitivity analysis in accordance with IFRS 7.
If the functional currency euro had appreciated or depreciated by 10% against the other currencies, this would
have resulted in the following effects on the hedging reserve in equity and profit after tax for the following currency
pairs. It is not appropriate to add together the individual figures, since the results of the various functional
currencies concerned are based on different scenarios.
Hedging reserve
Profit/loss after tax
EUR/SEK
Hedging reserve
Profit/loss after tax
EUR/HKD
Hedging reserve
Profit/loss after tax
EUR/SGD
Hedging reserve
121
Profit/loss after tax
-630
740
Hedging reserve
Hedging reserve
64
-64
19
-19
Profit/loss after tax
0
0
-3
EUR/PLN
3
Hedging reserve
185
Profit/loss after tax
-11
-185
11
153
-13
-153
13
EUR/CNY
EUR/GBP
23,187
€ million
32,238
Dec. 31, 2022
Credit risk rating grade 2
(receivables with credit risk-intensified loan management)
198
10
Credit risk rating grade 3
13,302
63
14,379
(cancelled receivables-non-performing loans)
15
5
2,276
66
2,200
Total
12,949
198
15
3,644
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Dec. 31, 2023
3,629
12,949
(receivables with no credit risk-standard loans)'
36.2.2 MODIFICATIONS
There were no contractual modifications of financial assets during the reporting period that led to the
derecognition of the asset.
Consolidated Financial Statements Notes to the consolidated financial statements
349
↑↓ ↑
350
36.2.3 MAXIMUM CREDIT RISK
The table below shows the maximum credit risk to which the Porsche AG Group is exposed, broken down into the
classes to which the impairment model is applied:
Maximum credit risk by category
15,640
€ million
Financial guarantees and credit commitments
Not allocated to a measurement category
Total
Gross carrying amounts of financial assets by rating grade as of December 31, 2022
€ million
Stage 1
Stage 2
Stage 3
Simplified
approach
Credit risk rating grade 1
Financial assets measured at fair value
Financial assets measured at amortized cost
The gross carrying amount of the financial guarantees and credit commitments totals €63 million (2022:
€66 million). As of December 31, 2023 the loss allowance recognized for this amounts to €0 million (2022:
€0 million).
16,645
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Credit risk rating grade 3
(cancelled receivables-non-performing loans)
Total
Remaining contractual maturities
Remaining contractual maturities
up to one
year
within one
to five years
more than
five years
2023
up to one
year
within one
to five years
more than
five years
2022
Financial liabilities
4,325
6,238
1,075
3,867
Trade payables
284
(receivables with credit risk-intensified loan management)
Credit risk rating grade 2
11,620
The "not allocated to a measurement category" combines receivables under long-term construction contracts
pursuant to IFRS 15 and lease receivables pursuant to IFRS 16, the maximum credit risk of which corresponds to
their carrying amounts and which is described in notes → 21. NON-CURRENT AND CURRENT OTHER RECEIVABLES and
→ 35. IFRS 16 (LEASES).
36.2.4 RATING GRADES
The Porsche AG Group performs a credit assessment of the borrower for every loan and lease agreement, using
scoring systems in the retail business, and rating systems for major customers and receivables from dealer
financing. Receivables rated as good are allocated to risk class 1. Receivables from customers whose credit rating
is not good but have not yet defaulted are allocated to risk class 2. All defaulted receivables are allocated to risk
class 3.
The table below shows the gross carrying amounts of financial assets by rating grade:
The credit risk for financial guarantees and credit commitments amounts to €63 million as of December 31, 2023
(2022: €66 million) and allocated to rating grade 1 and stage 1.
36.3 LIQUIDITY RISK
The solvency and liquidity of the Porsche AG Group are ensured at all times by rolling liquidity planning, a liquidity
reserve in the form of cash, confirmed credit lines and borrowing of loans. As of December 31 2023, a syndicated
line of credit of €2,500 million was available (€0 million drawn).
In certain countries (e.g., China), the Porsche AG Group can only use local cash funds for cross-border transactions
in compliance with applicable exchange controls. There are no other material restrictions.
1
The following overview shows the contractual undiscounted cash outflows from financial instruments:
Gross carrying amounts of financial assets by rating grade as of December 31, 2023
Stage 1
Currency options
Stage 3
Simplified
approach
€ million
€ million
Credit risk rating grade 1.
(receivables with no credit risk-standard loans)
Maturity analysis of undiscounted cash outflows from financial instruments
3,490
113
-18
-18
Disposal due to spin-off
-10
Newly extended/purchased financial assets
(additions)
75
Other changes within a stage
30
10
33
100
0
2
1
-17
-10
8
83
0
Transfers to
Changes in consolidated group
1
1
Foreign exchange differences
2023
2022
Classified as held for sale
Carrying amount at Dec. 31, 2023
47
11
11
35
104
Stage 1
Carrying amount at Jan. 1
Stage 1
Stage 2
Stage 3
Simplified
approach
Total
Carrying amount at Jan. 1, 2022
44
10
13
€ million
121
9
-3
11
14
36
111
Foreign exchange differences
Changes in consolidated group
Newly extended/purchased financial assets (additions)
Financial instruments derecognized during the period (disposals)
Utilization
Carrying amount at Dec. 31
113
114
0
0
0
23
25
-8
-6
-8
50
Carrying amount at Dec. 31, 2022
0
0
Stage 2
-8
8
Stage 3
-13
13
Financial instruments derecognized
during the period (disposals)
-30
-7
-3
-6
30
-5
51
-38
-7
Changes to models or risk parameters
-
Classified as held for sale
Utilization
11,639
3,490
Stage 2
5,478
Deferred taxes
Hedging interest rate risk
Total hedging interest rate risk
-5
6
11
3,779
5,857
26
21
6
Hedging currency risk
Hedging currency risk
Designated components
1,342
1,301
18
Currency forwards and cross-currency swaps
32,043
Non-designated components
969
15
Designated components
Disclosures on hedging instruments used in cash flow hedges 2023
Disclosures on hedged items used in hedge accounting
In addition to disclosures on the hedging instruments, disclosures must also be made on the hedged items, broken
down by risk category and type of designation in hedge accounting. The table below lists the hedged items
designated in cash flow hedges:
Disclosures on hedged items used in cash flow hedges 2023
€ million
Reserve for
Changes in fair value to
determine hedge
Discontinued
ineffectiveness
Active cash flow hedges
cash flow hedges
€ million
Notional amount
Other assets
Other liabilities
Fair value changes
to determine hedge
ineffectiveness
Hedging interest rate risk
6
Currency options
11,445
205
9
Non-designated components
Deferred taxes
ויוי
Disclosures on hedging instruments used in cash flow hedges 2022
€ million
Fair value changes
Notional amount
Other assets
Other liabilities
to determine hedge
ineffectiveness
Hedging interest rate risk
Interest rate swaps
6,633
190
0
168
Hedging currency risk
Currency forwards and cross-currency swaps
6
15
431
Commodity forwards/swaps
484
53
1,215
Non-designated components
-765
-5
117
Deferred taxes
-162
-4
The Porsche AG Group enters into hedging instruments to hedge its exposure to variability in future cash flows.
The table below shows the notional amounts, fair values, and inputs used to determine the ineffectiveness of the
hedging instruments included in cash flow hedges:
Combined interest rate and
1,342
374
currency risk hedging
Combined interest rate and
Interest rate/currency swaps
currency risk hedging
Hedging commodities price risk
Designated components
0
Total hedging currency risk
Disclosures on hedging instruments used in hedge accounting
Interest rate swaps
354
The cash outflows for other financial liabilities include liabilities for tax allocations amounting to €4 million (2022:
€15 million).
Derivatives comprise both cash outflows from derivatives with negative fair values and cash outflows from
derivatives with positive fair values for which gross settlement has been agreed. The cash outflows also include
derivatives entered into by means of offsetting transactions. The cash outflows from derivatives for which gross
settlement has been agreed are partly offset by cash inflows that are not taken into consideration in this maturity
Consolidated Financial Statements Notes to the consolidated financial statements
351
↑↓ ↑ 0 ||
352
analysis. If these cash inflows were taken into account, the cash outflows presented would be significantly lower.
This particularly applies if hedges have been closed with offsetting transactions.
There are also financial guarantees and credit commitments in place that are presented in the table → Maximum credit
risk by category in note → 36.2.3 MAXIMUM CREDIT RISK. The financial guarantees and credit commitments primarily relate
to a syndicated loan agreement with a total credit commitment of €145 million. The total credit commitment is
split into facilities A to C, with a term of up to five years (facilities A and B) or more than five years (facility C).
Under this loan agreement, Porsche AG acts as guarantor for maximum utilization of up to €38 million (facilities A
and B) and €25 million (facility C), respectively.
The Porsche AG Group mainly generates liquidity through its business operations, external financing and the
securitization of receivables. The funds are chiefly used to finance net working capital and capital expenditures and
to cover the finance requirements of the leasing and sales financing business. Operational liquidity management
uses cash pools in which material cash and cash equivalents in the Porsche AG Group are pooled on a daily basis.
There is also a cash pool in place with Volkswagen International Belgium S.A. This enables liquidity surpluses and
shortfalls to be controlled in line with requirements. The maturities of financial assets and financial liabilities as well
as forecasts of cash flows from operating activities are included in short and medium-term liquidity management.
36.4 MARKET RISK
36.4.1 HEDGING POLICY AND FINANCIAL DERIVATIVES
During the course of its general business activities, the Porsche AG Group is exposed to foreign currency, interest
rate, share and bond risks as well as risks relating to commodity prices. It is company policy to exclude or limit
these risks where possible by entering into hedging transactions.
Disclosures on gains and losses from cash flow hedges
Cash flow hedges are a hedge of the exposure to fluctuation in future cash flows. These cash flows can result from
a recognized asset or liability, as well as a highly probable forecast transaction. The table below shows the gains
and losses from cash flow hedges by risk type:
Disclosures on gains and losses from cash flow hedges
€ million
Hedging interest rate risk
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Recognized in equity
3,883
14
284
11,620
1,205
10,462
2,899
2,899
Other financial
liabilities
863
64
10
Recognized in profit or loss
Derivatives
7
11,980 17,143
20,658 23,445
1,075
maximum potential loss on the overall portfolio within a time horizon of 10 days at a confidence level of 99%. It is
based on aggregating all of the cash flows from the non-derivative and derivative financial instruments in an
interest rate gap analysis. The historical market data used to calculate VaR covers a period of 521 trading days.
The sensitivity analysis calculates the effect on equity and/or profit or loss by modifying risk variables within the
respective market risk.
4,585
4,825
34,292
1,205
52,478
14
Reclassification from the cash flow hedge reserve to profit or loss
928
240
29,122 15,818 18,474
45,178 27,081 24,193
Due to realization of the hedged item
0
Recognized in profit or loss
Reclassification from the cash flow hedge reserve to profit or loss
Due to early discontinuation of the hedging relationships
Due to realization of the hedged item
Hedging commodities price risk
Gains or losses from changes in fair value of hedging instruments within hedge
accounting
Recognized in equity
Recognized in profit or loss
Recognized in equity
Reclassification from the cash flow hedge reserve to profit or loss
5
1
The effects on equity shown in the table are net of deferred taxes.
The gains or losses on changes in the fair value of hedging instruments within hedge accounting correspond to the
basis for determining hedge ineffectiveness. The ineffective portion of cash flow hedges is the income or expense
from changes in the fair value of the hedging instrument that exceeds the changes in the fair value of the hedged
item. This hedge ineffectiveness arises due to differences in parameters between the hedging instrument and the
hedged item. The respective income or expenses are recognized in other operating income or expenses and in the
financial result.
The Porsche AG Group uses two different methods to present market risk from non-derivative and derivative
financial instruments in accordance with IFRS 7. For quantitative risk measurement, the financial services segment
uses a value-at-risk (VaR) model to measure interest rate and currency risk. By contrast, the market risk in the
automotive segment are determined using a sensitivity analysis. The VaR calculation indicates the extent of the
Consolidated Financial Statements Notes to the consolidated financial statements
353
Due to early discontinuation of the hedging relationships
↑↓ ↑ |||
Due to early discontinuation of the hedging relationships
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Due to realization of the hedged item
Due to realization of the hedged item
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Hedging currency risk
Combined interest rate and currency risk hedging
2023
2022
-112
-5
0
4
Recognized in equity
113
-818
Recognized in profit or loss
Reclassification from the cash flow hedge reserve to profit or loss
890
Due to early discontinuation of the hedging relationships
-61
-44
882
248
1,605
Property, plant and equipment
Purchase commitments in respect of
Dec. 31, 2023
Total
five years
More than five
years
Within one year
Within one to
196
€ million
Maturity
39. OTHER FINANCIAL OBLIGATIONS
3
97
Intangible assets
665
85
1
751
Obligations from
Irrevocable credit commitments to customers
Leasing and rental contracts
88
25
211
Miscellaneous other financial obligations
In accordance with IAS 37.92, no further disclosures are made in respect of estimates of the financial impact or
disclosures relating to uncertainties surrounding the amount or timing of contingent liabilities, so as not to
prejudice the outcome of the proceedings or the company's interests. Further information can be found in note
→ 40. LITIGATION.
975
1,534
1,803
Other contingent liabilities mainly comprise potential expenses arising from legal and product-related matters; in
particular, several product-related class actions brought by customers are pending in the USA. The plaintiffs are
each claiming various different quality defects with regard to Porsche AG's vehicles. Porsche AG and its
subsidiaries will continue to defend themselves against the claims. The contingent liabilities do not include
amounts connected with the diesel issue described in note → 40. LITIGATION. Further official investigations/
proceedings are at a stage where the basis for claims has not yet been specified and/or the amounts cannot be
determined with sufficient precision. To the extent that they meet the definition of a contingent liability, these
official investigations/proceedings were generally not disclosed due to the lack of measurable data.
Consolidated Financial Statements Notes to the consolidated financial statements
128
118
4,498
18,010
24.7
25.0
309
346
1,576
1,691
19.6
20.5
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Pre-tax return on equity in %
375
↑↓ ↑ 0 |||
376
Maturity
38. CONTINGENTLIABILITIES
64
123
39
0
0
5
In the case of liabilities from guarantees, the Group is required to make specific payments if the debtors fail to
meet their obligations.
25
Dec. 31, 2022
Dec. 31, 2023
Other contingent liabilities
Warranties
Guarantees
€ million
€ million
2,627
Marketable securities and time deposits
3,901
In connection with their business activities, Porsche AG Group companies engage in constant dialog with
regulatory agencies, including the Kraftfahrt-Bundesamt (KBA-German Federal Motor Transport Authority) as type
approval and market surveillance authorities. It is not possible to predict with assurance how government
regulators will assess certain issues of fact and law in a particular situation. For this reason, the possibility that
certain vehicle characteristics and/or type approval aspects may in particular ultimately be deemed deficient or
impermissible cannot be ruled out. This is also fundamentally a question of the regulatory agency's specific
evaluation in a concrete situation.
Risks may also result from actions for infringement of intellectual property, including infringement of patents,
brands, or other third-party rights, particularly in Germany and the USA. If the Porsche AG Group is alleged or
determined to have violated third-party intellectual property rights, it may for instance have to pay damages,
modify manufacturing processes, or redesign products, and may be barred from selling certain products; this may
result in delivery and production restrictions or interruptions.
Legal risks may also arise due to the criminal actions of individuals, which even the best compliance management
system can never fully rule out.
Consolidated Financial Statements Notes to the consolidated financial statements
377
↑↓ ↑
378
Where doing so was manageable and economically feasible, adequate insurance cover was taken out to cover
these risks. Where necessary based on the information currently available, identified and correspondingly
measurable risks have been reflected by recognizing provisions in amounts considered appropriate or disclosing
contingent liabilities, as the case may be. Since some risks cannot be assessed, or only to a limited extent, it cannot
be ruled out that significant losses or damage may arise in an amount not covered by the insurance or provisions.
Unless otherwise explicitly stated, the amounts disclosed for the litigation reported on here refer only to the
respective claim of the other party. Other legal defense costs, such as any legal and consulting fees and litigation
costs, are not as a rule reported in connection with the legal disputes presented here.
Diesel issue
On November 2, 2015, the United States Environmental Protection Agency (EPA) issued a notice of violation of the
Clean Air Act to Volkswagen AG, AUDI AG, Volkswagen Group of America, Inc., Porsche AG and Porsche Cars North
America, Inc.
The notice alleges that certain 3.0 liter V6 Volkswagen Group diesel engines are in contravention of the applicable
emissions certification standards.
Porsche AG decided to voluntarily halt sales of the roughly 11,500 3.0 liter V6 US diesel engines affected by the
notice of violation pending a decision and recertification by the US authorities.
On January 4, 2016, the US Department of Justice filed a complaint at the request of the EPA against the above
companies, among others. In addition, class actions were filed by customers, dealers and investors and
proceedings were initiated by further authorities and institutions (including the Department of Justice (civil and
criminal), state attorney generals, the Federal Trade Commission and the Customs and Border Protection Agency)
over the course of 2016. Porsche AG cooperated with all of the parties involved to clarify the matter.
Various legal proceedings are pending worldwide, particularly in the USA, in which customers are asserting
purported product-related claims, either individually or in class actions. These claims are as a rule based on alleged
vehicle defects, including defects alleged in vehicle parts supplied to the Porsche AG Group. Compliance with legal
or regulatory requirements (such as the GDPR) is another area in which risks may arise. This applies in particular to
gray areas, where Porsche AG or the companies in which it holds direct or indirect interests may make
interpretations that differ from those of the competent authorities.
On January 11, 2017, the US Department of Justice published the agreement with the Volkswagen Group,
including Porsche AG. The agreement with Porsche AG is limited to civil penalties. Volkswagen AG has signed a
hold harmless agreement for the fines. The Porsche AG Group will not be supervised by an external monitor. The
organizational and process requirements have already been largely addressed in the Porsche remediation plan. On
May 11, 2017, the agreement of January 2017 was confirmed by the courts. On April 13, 2017, the US
Department of Justice concluded the third partial consent decree ("3PCD") in connection with the diesel issue. On
July 21, 2017, a comparable agreement ("California PCD") was reached with the United States District Court for
the Northern District of California. In this agreement, Porsche AG undertook to meet conditions from the areas of
organization, processes, employees and sustainability and to provide evidence of meeting these conditions. These
essentially corresponded with the remediation plan.
In September 2022, the 3PCD was lifted by the court. Porsche has thus met all required conditions. The California
PCD was also lifted by the court in September 2022.
AUDI AG has held Porsche AG harmless the costs of legal risks, litigation, product liability complaints or other third-
party complaints relating to the 2013-2016 Porsche Cayennes affected in North America and it was agreed to not
plea the statute of limitations until July 31, 2023 and was subsequently extended until July 31, 2025.
Consequently, from today's perspective, it is not expected that the Porsche AG Group will be subject to any
significant outflow of resources in this regard.
Accordingly, no receivables were recognized for other costs incurred in connection with the diesel issue in North
America for which AUDI AG has signed a hold harmless agreement as an outflow of resources is not virtually certain
as of the reporting date. It was agreed to not plea the statute of limitations until July 31, 2023 and this was
subsequently extended until July 31, 2025.
For the legal proceedings outside of the USA and Canada in connection with the diesel issue, Porsche AG expects -
based on previous agreements and accounting practice - that the costs incurred in this connection for legal risks
and litigation costs will be borne by AUDI AG and will pass the costs on to the latter. No extensive provisions will be
recognized for future expected outflows of resources.
On January 21, 2019, the public prosecutor's office in Stuttgart instigated administrative fine proceedings
pursuant to sections 30 and 130 of the German Act on Breaches of Administrative Regulations (OWIG). The
administrative offense proceedings initiated against Porsche AG in connection with the diesel issue ended with the
fine notice issued by the public prosecutor's office in Stuttgart on May 7, 2019. The fine notice is based on a
negligent breach of supervisory duty in the organizational unit Prüffeld Entwicklung Gesamtfahrzeug/Qualität
(Overall Vehicle Development/Quality-Testing Facility) or its respective successor organization. The fine notice
imposes a total fine of €535 million, comprising a penalty payment of €4 million and the forfeiture of economic
benefits amounting to €531 million. After a thorough review, Porsche AG did not appeal the penalty payment,
rendering the fine notice legally binding. The fine has been paid in full, thus ending the administrative offense
proceedings against Porsche AG. As a consequence, it is highly unlikely that any further penalties or forfeitures will
be imposed on Porsche AG in Europe in connection with the uniform circumstances underlying the fine notice.
Furthermore, a number of administrative investigations and proceedings are pending around the world against
Porsche AG and its subsidiaries as well as against its executive directors with regard to the diesel issue.
At the end of March 2021, the supervisory board of Volkswagen AG announced the completion of the investigation
initiated in October 2015 into the causes of and those responsible for the diesel issue. In this context, the
Volkswagen AG group has reached agreement with the relevant insurers under its directors and officers liability
policies (D&O insurance) on payment of an aggregate sum of €270 million (coverage settlement). In addition,
agreement was reached on damage payments by a former member of AUDI AG's board of management and the
former member of Porsche AG's Executive Board, Mr. Wolfgang Hatz (liability settlement). As a result of this
liability settlement as well as the coverage settlement, Porsche AG recognized other operating income of
€30 million in the fiscal year 2021. On June 27, 2023, Mr. Wolfgang Hatz was sentenced to a suspended prison
term by the Munich II Regional Court on a charge of fraud. The ruling is not yet legally binding. The liability
settlement remains in effect.
In 2018, the public prosecutor's office in Stuttgart instigated a criminal investigation into the diesel issue against
individual persons on suspicion of fraud and illegal advertising. Proceedings against an Executive Board member
have since been discontinued without determining any misconduct pursuant to section 153a of the German Code
of Criminal Procedure (StPO) against payment of a court-imposed sum. A penalty order was also issued against a
Porsche AG employee. This only relates to the Cayenne V8 TDI EU6 and to a period as of 2016. The penalty order
has since become legally binding, meaning that these proceedings have also come to an end. According to the
information available, the other individual proceedings have also been discontinued pursuant to section
153 StPO/section 153a StPO. In connection with these proceedings being discontinued, Porsche AG made
reimbursements of €2 million to the employees.
Consolidated Financial Statements Notes to the consolidated financial statements
379
↑↓ ↑ ||
1,810
4,857
19,646
On October 23, 2017, the US authorities approved the software update submitted for review by the Volkswagen
Group relating to emissions compliant repair (ECR) for around 38,000 US vehicles with 3.0 liter V6 TDI generation
2.1 and 2.2 engines. The recall of the approximately 11,500 US Cayenne V6 diesel vehicles began in November
2017. The requisite software update was successfully rolled out in the fiscal year 2018. The recall quota specified
in the agreement with the US authorities was thus exceeded.
In the course of their operating activities, Porsche AG and the companies in which it holds direct or indirect
interests are involved in a large number of legal disputes and official proceedings, both in Germany and abroad.
Among others, these legal disputes and proceedings relate to or are connected with employees, authorities,
services, dealers, investors, customers, products or other contractual partners. They may lead to payments such as
fines as well as other obligations and consequences for the companies involved. In particular, substantial
compensation or punitive damages may have to be paid and cost-intensive measures may be necessary. In this
context, specific estimation of the objectively likely consequences is often possible only to a very limited extent, if
at all.
40. LITIGATION
3,390
1,344
147
5,392
Within one year
Within one to
five years
More than five
years
Total
Dec. 31, 2022
Purchase commitments in respect of
Property, plant and equipment
Intangible assets
361
125
1,803
163
486
1,966
Obligations from
116
803
2,471
Total
839
110
Total
456
Miscellaneous other financial obligations
100
7
59
34
Irrevocable credit commitments to customers
Leasing and rental contracts.
273
Average equity
Cash and cash
Financial services segment
reduced by entering into interest rate hedges and cross-currency interest rate swaps.
Interest rate risk in the financial services segment mainly results from changes in market interest rates, primarily
for medium- and long-term floating-rate liabilities and from non-maturity-matched refinancing. This risk is
36.4.3 MARKET RISK IN THE FINANCIAL SERVICES SEGMENT
Interest rate risk
If the commodity prices of the hedging instruments accounted for using hedge accounting as of December 31,
2023 had been 10% higher (lower), equity would have been €27 million higher (lower). As of year-end 2022, no
hedging instruments were accounted for using hedge accounting.
Commodity price risk within the meaning of IFRS 7 is presented using sensitivity analyses.
Commodity risks for the Porsche AG Group arise, among other things, from the price development of commodities.
Commodity price risks are partly hedged through the use of hedging instruments for a period of several years. The
hedging instruments used are averaging swaps which are accounted for as cash flow hedges. The volume of
hedges is determined on the basis of the planned commodity exposure in the respective procurement contracts. In
2023, price hedges were entered into for aluminum, copper, nickel, cobalt and lithium hydroxide.
Commodity price risk
If share prices had been 10% higher as of December 31, 2023, profit after tax would have been €29 million (2022:
€14 million) higher. If share prices had been 10% lower as of December 31, 2023, profit after tax would have been
€36 million (2022: €12 million) lower.
IFRS 7 stipulates that the presentation of market risk must include disclosures on how hypothetical changes in risk
variables impact the price of financial instruments. The risk variables include in particular quoted market prices or
indices, as well as interest rate changes as a bond pricing parameter.
The fully consolidated special funds in which the Porsche AG Group invests surplus liquidity are exposed in
particular to equity and bond price risks that may arise from fluctuations in quoted market prices, stock exchange
indices and market interest rates. The risks to which the special funds are exposed are generally countered by the
Porsche AG Group by ensuring a broad diversification across a range of products, issuers and regional markets
when making investment decisions, as stipulated in the investment policy. The risk management system in place is
partially based on a minimum value threshold and, if the market situation is appropriate, exchange rate hedges are
entered into.
Equity and bond price risks
360
1,810
Non-current liabilities
Other financial liabilities
15
15
Current liabilities
Other financial liabilities
88
88
Consolidated Financial Statements Notes to the consolidated financial statements
367
As of December 31, 2023, the VaR for interest rate risk amounted to €34 million (2022: €51 million).
Currency risk
Currency risk in the financial services segment mainly results from assets denominated in a currency other than the
functional currency, and from refinancing as part of operating activities. These risks are partly reduced by entering
into cross-currency interest rate swaps.
As of December 31, 2023, the VaR for currency risk amounted to €0 million (2022: €1 million).
Hedging currency risk
6,633
5,857
3,229
2,628
Interest rate swap
Hedging interest rate risk
hedge accounting
instruments within
Notional amount of hedging
Dec. 31, 2022
↑↓ ↑ 0 |||
Dec. 31, 2023
within one to
five years
up to one year
Total notional
amount
Total notional
amount
Term of maturity
€ million
Notional amount of derivative financial instruments
The table below shows the remaining maturities profile of the notional amounts of hedging instruments recognized
under the Porsche AG Group hedge accounting requirements, as well as derivatives not within hedge accounting:
For this purpose, cumulative changes in the value of the designated components of the hedging instrument and
the hedged item are compared. If there is no critical terms match, the same procedure is applied to the non-
designated components.
Since transitioning to IFRS 9, the Porsche AG Group mainly assesses the effectiveness of hedges on a prospective
basis using the critical terms match method. Retrospective analysis of effectiveness uses effectiveness tests in the
form of the dollar offset method. Under the dollar offset method, the changes in value of the hedged item
expressed in monetary units are compared with the changes in value of the hedging instrument expressed in
monetary units.
36.5 Methods for monitoring hedge effectiveness
more than five
years
Currency forwards/
368
€ million
16
Other financial assets
424
424
Cash and cash equivalents
5,820
5,820
Non-current liabilities
Assets held for sale
6
6
Other financial liabilities
284
284
Fair value of financial assets measured at
amortized cost
Current liabilities
13,440
6,954
2,258
4,227
Other financial liabilities
280
280
16
Marketable securities and time deposits
Current assets
2
Dec. 31, 2023
Level 1
Derivative financial instruments included in hedge accounting by level:
Level 2
Level 3
€ million
Dec. 31, 2023
Level 1
Level 2
Level 3
Financial services receivables
Fair values of financial assets and liabilities measured at amortized cost by level
4,226
Non-current assets
Trade receivables
Other financial assets
1,449
1,449
Other financial assets
791
791
1,924
1,134
788
4,226
Trade payables
Cross-currency swaps
Cross-currency swaps in CNY
The total notional amount includes both derivatives entered into by means of offsetting transactions, as well as the
offsetting transactions themselves. The offsetting transactions partly offset effects resulting from the original
hedge, meaning that the respective notional amount would be higher were the offsetting transaction not taken into
account.
To hedge commodity price risks, the average hedging rates were US$2,332.15/t for aluminum and
US$8,359.11/t for copper.
With respect to the currency forwards and currency options, the Porsche AG Group achieved a hedging exchange
rate for the key currencies of 7.41 and 7.24, respectively (EUR/CNY; 2022: 7.44 and 7.35, respectively), 0.88
(EUR/GBP; 2022: 0.87) and 1.14 and 1.09, respectively (EUR/USD; 2022: 1.16 and 1.12, respectively), weighted
by total notional amount.
With respect to the interest rate swaps and cross-currency interest rate swaps presented above, the Porsche AG
Group achieved an average hedging interest rate of 3.0% (2022: 1.4%) and 0.0% (2022: 0.3%), respectively,
weighted by total notional amount.
(€1 million; 2022: €0 million), with a remaining maturity of less than one year, and other swaps (€14 million; 2022:
€0 million), with a remaining maturity of more than five years.
In addition to the other derivatives used to hedge currency and interest rate risks, as presented above, the
Porsche AG Group held credit swaps with a notional amount of €52 million (2022: €21 million) and remaining
maturity of between one and five years on the December 31, 2023 reporting date. The Porsche AG Group also held
fixed income futures (€403 million; 2022: €306 million), equity futures (€213 million; 2022: €66 million), other
swaps (€123 million; 2022: €0 million), currency futures (€43 million; (2022: €58 million), stock options
362
↑ ↓ ↑ 0 |||
361
Consolidated Financial Statements Notes to the consolidated financial statements
4,291
213
5,100
328
246
4,853
328
Interest rate swap
Hedging currency risk
Currency forwards/
Cross-currency swaps
Currency options
562
882
7
433
442
Hedging interest rate risk
Notional amount of other
derivatives
32
Another effect that increases the notional amount results from cylinder options, where both the put and call
options are taken into consideration in the notional amount.
The hedged items in cash flow hedges are expected to be realized in accordance with the maturity buckets of the
hedges presented in the table.
The market values of the derivatives are determined using market data on the reporting date and suitable valuation
techniques. The calculation was based on, among other things, the following interest rate structure:
%
122
132
Financial assets measured at fair value through other comprehensive income (equity
instruments)
1,845
2,160
Financial assets measured at fair value through profit or loss
Dec. 31, 2022
Dec. 31, 2023
€ million
36.6.1 CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS BY MEASUREMENT CATEGORY OF IFRS 9
The table below presents the carrying amounts of the financial instruments by measurement category:
52
36.6 Other disclosures on financial instruments
CNY
GBP
USD
EUR
JPY
CNY
GBP
USD
EUR
Dec. 31, 2022
Dec. 31, 2023
JPY
Currency forwards/
8
Commodity forwards/swaps
other
8,817
10,058
5,947
4,111
in other currencies
Cross-currency swaps
Currency forwards/
2,267
2,761
1,266
1,496
Cross-currency swaps in USD
Currency forwards/
10,321
11,167
6,825
4,342
Cross-currency swaps in GBP
Currency forwards/
10,833
8,056
5,019
3,037
Currency options
Currency options in CNY
4,733
1,906
145
102
43
Commodity forwards/swaps
copper
234
87
146
Commodity forwards/swaps
aluminum
Hedging Commodity price risk
Interest rate/currency swaps
other currencies
Combined interest rate and
currency risk hedging
44
2,454
1,570
799
other currencies
Currency options in
5,039
2,437
1,174
1,264
Currency options in USD
15,694
6,639
2,369
3,490
3,490
Financial liabilities
Total gains or losses recognized in profit or loss
Net other operating expense/income
of which attributable to assets/liabilities
held at the reporting date
Financial result
of which attributable to assets/liabilities
held at the reporting date
-9
-9
-9
Financial assets
measured at fair value
203
156
58
36
22
-9
-18
-127
263
36
36
12
Balance at Dec. 31, 2022
Changes in participation structure
Disposals (sales)
Settlements
-76
-6
Changes in participation structure
-26
193
Disposals (sales)
Transfers between the levels of the fair value hierarchy are reported as of the respective reporting dates. There
were no transfers between the levels of the fair value hierarchy during the reporting period.
The key risk variable for equity instruments held by the company is the corresponding enterprise value.
A sensitivity analysis is used to present the effects of a change in the risk variables on profit after tax. If the
assumed enterprise values had been 10% higher as of December 31, 2023, profit after tax would have been
€4 million (2022: €5 million) higher. If the assumed enterprise values had been 10% lower as of December 31,
2023, profit after tax would have been €4 million (2022: €5 million) lower. If the assumed enterprise values had
been 10% higher as of December 31, 2023, equity would have been €9 million (2022: €9 million) higher. If the
assumed enterprise values had been 10% lower as of December 31, 2023, equity would have been €9 million
(2022: €9 million) lower.
The key risk variable for options on equity instruments held by the company is the corresponding enterprise value.
A sensitivity analysis is used to present the effects of a change in the risk variable on profit after tax. If the
assumed enterprise values had been 10% higher as of December 31, 2023, profit after tax would have been
€0 million (2022: €5 million) higher. If the assumed enterprise values had been 10% lower as of December 31,
2023, profit after tax would have been €0 million (2022: €5 million) lower.
Balance at Dec. 31, 2023
Total gains or losses recognized in profit or loss
Consolidated Financial Statements Notes to the consolidated financial statements
Net other operating expense/income
Financial result
of which attributable to assets/liabilities
held at the reporting date
€ million
Balance at Jan. 1, 2022
Additions (purchases)
Transfers from level 3 into level 1
Transfers from level 3 into level 2
Total comprehensive income
recognized in profit loss
recognized in other comprehensive income
of which attributable to assets/liabilities
held at the reporting date
Settlements
371
372
Trade payables
3,490
3,490
Other financial
liabilities
928
928
Derivative financial
instruments
1,445
1,445
-497
Financial services
receivables
6,345
6,345
Trade receivables
1,449
1,449
Marketable
securities and
time deposits
1,826
1,826
Dec. 31, 2023
Net amount at
Collateral
received
Financial
instruments
36.6.5 OFFSETTING FINANCIAL ASSETS AND LIABILITIES
The following tables contain information about the effects of offsetting in the statement of financial position and
the potential financial effects of offsetting in the case of instruments that are subject to a legally enforceable
master netting arrangement or a similar agreement.
Amounts that are not set off in the
statement of financial position
€ million
Gross amounts of
recognized
financial liabilities
Gross amounts of
recognized
financial assets
set off in the
statement of
financial position
Amounts that are not set off in the
statement of financial position
Net amounts of
financial liabilities
presented in the
statement of
financial position
Financial
instruments
Collateral
pledged
Net amount at
↑↓ ↑ ||
Dec. 31, 2023
Gross amounts of
recognized
€ million
financial assets
financial liabilities
set off in the
statement of
financial position
Net amounts of
financial assets
presented in the
statement of
financial position
Derivative financial
instruments
667
Financial liabilities
10,417
667
10,417
-497
Gross amounts of
recognized
-3
recognized in other comprehensive income
-9
Current assets
Other financial assets
140
140
Non-current liabilities
Other financial liabilities
Current liabilities
621
621
Other financial liabilities
584
584
466
466
Financial services receivables
Trade receivables'
3,671
3,671
1,268
1,268
Other financial assets'
5,382
1,360
4,020
139
Other financial assets
Non-current assets
Level 3
9,313
65
9,247
Other financial liabilities
928
89
700
1
138
€ million
Dec. 31, 2022
Level 1
2
Level 2
Liabilities associated with assets held for sale
1
1
Fair value of financial liabilities measured at
amortized cost
13,731
154
13,438
€ million
Dec. 31, 2022
Level 1
Level 2
Level 3
Marketable securities and time deposits
equivalents
262
Fair value of financial liabilities measured at
amortized cost
16,052
54
15,635
363
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Consolidated Financial Statements Notes to the consolidated financial statements
369
↑↓ ↑ 0 ||
370
The table below summarizes the changes in items in the statement of financial position measured at fair value and
allocated to level 3:
1
Changes in items in the statement of financial position measured at fair value based on level 3
Balance at Jan. 1, 2023
Additions (purchases)
Transfers from level 3 into level 1
Transfers from level 3 into level 2
Financial assets
measured at fair value
263
49
Total comprehensive income
-11
recognized in profit or loss
€ million
Financial assets measured at amortized cost
1
54
309
262
Cash and cash equivalents
3,719
3,719
Assets held for sale
26
26
Fair value of financial assets measured at
amortized cost
14,328
5,079
Liabilities associated with assets held for sale
5,577
Trade payables
2,899
2,899
Financial liabilities
8,279
0
8,225
Other financial liabilities
4,873
54
4,510
3,673
Cash and cash
13,302
6
193
0
193
82
Level 3
Level 2
Level 1
Other equity investments
Non-current assets
€ million
Dec. 31, 2023
Financial assets and liabilities measured at fair value by level:
The fair values of financial assets and liabilities measured at amortized cost are presented in the following
overview. The fair value of receivables from financial services allocated to level 3 is determined using the current
market interest rates valid on the reporting date instead of the internal interest rate. The material inputs used to
calculate the fair value of receivables from financial services are forecasts and estimates of used vehicle residual
values for the respective models. The receivables from financial services also include assets amounting to
€2,256 million (2022: €2,180 million) that are measured in accordance with IFRS 16.
70
10
70
10
Other financial liabilities
Current liabilities
Other financial liabilities
1,533
1,533
Marketable securities and time deposits
70
82
Other financial assets
Current assets
Other financial assets
financial position
financial assets
financial assets
presented in the
Net amounts of
Gross amounts of
recognized
financial liabilities
set off in the
statement of
recognized
Gross amounts of
€ million
2,180
5,820
1,826
71
1,449
948
Amounts that are not set off in the
statement of financial position
€ million
2,180
2,180
assets
Other financial
5,820
5,820
207
207
6,345
statement of
financial position
141
100
3 Other assets that are not financial assets are not included (other receivables and income tax receivables: €816 million).
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
2 Other assets that are not financial assets are not included (other receivables and deferred tax assets: €842 million).
Other liabilities that are not financial liabilities are not included (income tax provisions, other provisions, other liabilities and income tax liabilities:
€4,961 million].
4
2 Other assets that are not financial assets are not included (other receivables and income tax receivables: €1,314 million).
5,287
2,899
3,464
106
1
1
584
4,633
4,633
70
2,899
2,899
3,358
3,358
assets held for sale
Liabilities associated with
Other financial liabilities
Trade payables
4
Other liabilities that are not financial liabilities are not included (other provisions, deferred tax liabilities and other liabilities: €3,472 million).
5 Other liabilities that are not financial liabilities are not included (income tax provisions, other provisions, other liabilities and income tax liabilities:
€4,917 million).
Consolidated Financial Statements Notes to the consolidated financial statements
193
0
193
Level 3
Level 2
Level 1
Dec. 31, 2022
Non-current liabilities
Other financial assets
Current assets
Other financial assets
100
Other equity investments
€ million
The tables below provide an overview of the financial assets and liabilities measured at fair value by level:
Fair values are allocated to the levels of the fair value hierarchy based on the availability of observable market
prices. Level 1 shows the fair values of financial instruments where a quoted price is directly available on active
markets. This includes securities issued by the Porsche AG Group. Fair values in level 2, such as derivatives, are
derived from market data using market valuation techniques. These market data include in particular currency
exchange rates and yield curves which are observable on the relevant markets and can be obtained from pricing
service providers. Level 3 fair values are calculated using valuation techniques with inputs that are not based on
directly observable market data. In particular, the Porsche AG Group allocated options on equity instruments to
level 3. Equity instruments are primarily measured on the basis of the respective business plans and entity-specific
discount rates.
36.6.4 FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
"Financial instruments measured at fair value" also include shares in partnerships and corporations.
The key risk variables for the fair values of receivables are risk-adjusted interest rates.
For the reconciliation to the carrying amounts in the statement of financial position, the "Not allocated to a
measurement category" column in the table also includes items that are not financial instruments.
The fair value of financial instruments measured at amortized cost, such as receivables and liabilities, is calculated
by discounting the carrying amount using a market rate of interest for a similar risk and matching maturity. For
reasons of materiality, the fair value of current statement of financial position items is generally deemed to be their
carrying amount.
366
↑↓ ↑ 0 |||
365
Non-current assets
Financial liabilities
Financial
instruments
Net amount at
Dec. 31, 2022
2022
2023
€ million
Net gains/losses from financial assets by IFRS 9 measurement category
The following table shows the net gains or losses from financial assets and financial liabilities by measurement
category, which is followed by detailed information on the material items:
36.6.7 NOTES TO THE INCOME STATEMENT PURSUANT TO IFRS 7
A majority of the group's asset-backed securities transactions may be repaid ahead of schedule ("clean up call") if a
contractually fixed minimum volume (%) regarding the original transaction volume is still outstanding. The pledged
receivables may not be pledged further or otherwise serve as collateral. The claims of the bond holders are limited
to the amount of the receivables pledged and the proceeds from these receivables are earmarked for repayment of
the corresponding liability. As of December 31, 2023, the fair value of the receivables from the financing business
that have been pledged but not disposed of amounted to €4,023 million (2022: €3,090 million). The fair value of
the associated liabilities as of the reporting date amounted to €3,823 million (2022: €2,773 million).
€7,420 million (2022: €6,282 million) and were reported in ABS refinancing. The corresponding carrying amount
of the receivables from customer and dealer financing and the finance lease business was €4,622 million (2022:
€3,757 million). Collateral totaling €9,197 million (2022: €7,948 million) was provided for transactions in asset-
backed securities, of which €4,622 million (2022: €3,757 million) relates to collateral in the form of financial
assets. The transactions in asset-backed securities did not result in the disposal of receivables from the financial
services business since del credere and repayment risks were retained within the Porsche AG Group. The difference
between the pledged receivables and the associated liabilities resulted from the share of vehicles financed within
the Porsche AG Group.
Transactions in asset-backed securities conducted to refinance the financial services business amounted to
374
↑↓ ↑
373
Consolidated Financial Statements Notes to the consolidated financial statements
In the financial services segment, asset-backed securities transactions are largely used to refinance its portfolio of
lease and financing agreements. This involves assigning the expected payments to structured financing companies
and transferring the financed vehicles are as collateral. A distinction is made here between revolving, non-public
facilities with one or a syndicate of refinancing partners and amortizing, public asset-backed securities bonds,
which are broadly marketed to investors on the capital market. In the event that asset-backed securities bond
issues are not possible to the planned extent on account of unfavorable market conditions, Porsche Financial
Services also uses asset-backed, amortizing private placements as the need arises by directly approaching
selected major investors as an alternative refinancing instrument.
36.6.6 ASSET-BACKED SECURITIES TRANSACTIONS
The "Financial instruments" column presents amounts subject to a master netting arrangement but that are not
offset because they do not meet the conditions for offsetting in the statement of financial position. The "Collateral
received" and "Collateral pledged" columns present the amounts in relation to the total amount of assets and
liabilities received or pledged as collateral in the form of cash or financial instruments that do not meet the
conditions for offsetting in the statement of financial position.
Other financial assets contain other equity investments measured at fair value of €193 million (2022:
€193 million).
4,873
2,899
9,480
871
4,873
4,873
Financial instruments measured at fair value through profit or loss
161
56
Financial assets measured at amortized cost
Return on investment (ROI) in %
Assets invested (average)
Operating profit after tax
Automotive segment¹
The disposal of financial assets measured at amortized cost results in gains of €2 million (2022: €0 million) and
losses of €35 million (2022: €1 million).
The total interest income attributable to financial assets and liabilities measured at amortized cost, as calculated
using the effective interest method, amounted to €539 million (2022: €507 million) and the total interest
expenses amounted to €363 million (2022: €185 million).
The net gains or losses in the financial assets and liabilities measured at amortized cost category mainly comprise
interest income and expenses under the effective interest method pursuant to IFRS 9, currency translation effects,
and the recognition of loss allowances. Interest also includes interest income and expenses from the lending
business in the financial services segment.
The net gains or losses in the financial instruments measured at fair value through profit or loss category mainly
result from the fair value measurement of derivatives, including interest and gains or losses on currency translation.
2022
2023
€ million
Other financial
liabilities
The return on investment in the automotive segment and the return on equity in the financial services segment are
presented in the tables below:
In order to structure the use of resources as efficiently as possible in the automotive segment and to measure its
success, we apply return on investment (ROI) as performance indicator. ROI is the average return on invested
capital for a particular period based on the operating profit after tax. Invested capital is calculated as total
operating assets (property, plant and equipment, intangible assets, inventories and receivables) less non-interest-
bearing liabilities (trade payables and payments on account received). Average invested capital is calculated using
total assets at the beginning and the end of the reporting year.
The Porsche AG Group's capital management ensures that it is possible to realize the group's objectives and
strategies in the interests of the shareholder, employees and other stakeholders. The primary objective of capital
management at the Porsche AG Group is to ensure the financial flexibility necessary to realize its value-adding
business and growth targets and to increase its enterprise value over the long term. The management's focus lies
on increasing the return on invested capital in the automotive segment and on increasing the return on equity in
the financial services segment. In general, the aim of the Porsche AG Group and its segments is to achieve as high a
return as possible to the benefit of all stakeholders in the company.
37. CAPITAL MANAGEMENT
416
-20
-304
114
Financial liabilities measured at amortized cost
0
Financial assets measured at fair value through other comprehensive income
(debt instruments)
380
257
Given the particular features of the financial services segment, control focuses on the return on equity, a target
indicator which is based on the equity invested. This indicator is calculated as the ratio of earnings before tax to
average equity. Average equity is calculated from the balance at the beginning and the end of the reporting year. In
addition, the financial services segment aims to satisfy the capital requirements of the banking supervisory
authorities, as well as to obtain the necessary equity to finance the growth planned for the coming fiscal years and
to support external ratings by ensuring capital adequacy. The capital requirements of the banking supervisory
authorities were complied with in the fiscal year 2023 and in the prior year.
Collateral
received
2,899
Trade payables
3,719
1,795
5,641
assets'
Other financial
3,719
equivalents
1,795
time deposits
securities and
Marketable
1,268
1,268
Trade receivables
5,920
5,920
receivables
Financial services
-414
791
791
instruments
Derivative financial
5,641
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
378
5,920
9,480
9,480
Financial liabilities
-414
1,285
1,285
instruments
Derivative financial
Net amount at
Dec. 31, 2022
Collateral
pledged
Financial
instruments
2,899
928
10,417
170
Amounts that are not set off in the
statement of financial position
financial position
Net amounts of
financial liabilities
presented in the
statement of
Gross amounts of
recognized
financial assets
set off in the
statement of
financial position
Gross amounts of
recognized
financial liabilities
5,641
3,719
1,795
1,268
3,490
1,231
3,490
3,880
€ million
Carrying
amount
Carrying
amount
Fair value
amount
Carrying
Carrying
amount
item at
Dec. 31, 2023
Statement of
financial position
to a
measurement
category
accounting
Not
allocated
financial
instruments
within hedge
Measured at
amortized cost
at fair value
Measured
Derivative
Non-current assets
€ million
Reconciliation of items in the statement of financial position to classes of financial instruments as
of December 31, 2022'
Reconciliation of items in the statement of financial position to classes of financial instruments as
of December 31, 2023
364
↑↓ ↑ 0 |||
Non-current assets
Derivative
Measured
at fair value
193
Other equity investments
814
621
193
Other equity investments
623
623
investments
651
651
363
investments
Equity-accounted
Carrying
amount
Carrying
amount
Fair value
Carrying
amount
Carrying
amount
financial position
item at
Dec. 31, 2022
Statement of
Not
allocated
to a
measurement
category
financial
instruments
within hedge
accounting
Measured at
amortized cost
Equity-accounted
443
Consolidated Financial Statements Notes to the consolidated financial statements
36.6.3 RECONCILIATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION TO CLASSES OF FINANCIAL
INSTRUMENTS
0.02 2.73
5.16 5.14 2.38
3.68
6 months
Interest rate for
not allocated to any measurement category
derivative financial instruments included in hedge accounting
financial instruments measured at amortized cost
financial instruments measured at fair value
The Porsche AG Group allocates financial instruments to the following classes:
36.6.2 CLASSES OF FINANCIAL INSTRUMENTS
The fair values recognized as of December 31, 2023 relate to the shares in 1KOMMA5°GmbH, Hamburg
(€52 million; 2022: €13 million), Cresta Intelligence Inc., Wilmington, DE (€9 million; 2022: €9 million), Nozomi
Networks, Inc., San Francisco, CA (€8 million; 2022: €3 million), DSP Concepts, Inc., Dover, DE (€6 million; 2022:
€6 million), Bumper International Ltd., London (€5 million; 2022: €2 million), Hangzhou Wanxiang Culture
Technology Co., Ltd., Hangzhou (€4 million; 2022: €1 million) as well as other smaller equity investments
(€49 million; 2022: €46 million).
The measurement category "financial assets measured at fair value through other comprehensive income (equity
instruments)" contains equity investments in unlisted companies in which the Porsche AG Group holds between
0.03% and 14.90% of the shares. As these are long-term equity investments, they are irrevocably measured at fair
value through other comprehensive income.
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
of which classified as held for sale
1
16,207
13,788
Financial liabilities measured at amortized cost
79
103
Financial liabilities measured at fair value through profit or loss
14,379
26
4.79 4.08
2.41
0.01
Interest rate for
1 year
credit commitments and financial guarantees (not recognized in the statement of financial position)
-
0.91
4.07
3.75
3.53
2.77 0.84 3.15
3.48 3.30
2.27
10 years
Interest rate for
The table below presents a reconciliation of the line items in the statement of financial position to the relevant
classes of financial instruments, broken down by the carrying amounts and fair values of the financial instruments.
4.08 3.06 0.60
3.19
0.45
2.57
2.18 3.56 3.38
Interest rate for
5 years
0.10
3.03 4.89 4.46 2.46
0.07
2.31
4.79 4.75
3.21
3.73
636
Financial services receivables
Other financial assets'
284
64
Non-current liabilities
Financial liabilities
6,537
934
5,545
5,602
64
15
Other financial liabilities³
Financial liabilities
Non-current liabilities
26
26
3,719
1,795
262
3,719
262
3,719
26
Assets held for sale
6
Cash and cash equivalents
5,820
1,533
time deposits
364
Other financial liabilities
10
5,076
240
113
3 Other liabilities that are not financial liabilities are not included (other provisions, deferred tax liabilities and other liabilities: €3,996 million).
1 Other assets that are not financial assets are not included (other receivables and deferred tax assets: €705 million).
1
1
assets held for sale
Liabilities associated with
280
864
864
88
1,826
Other financial liabilities
3,490
Trade payables
3,768
3,768
Financial liabilities
Current liabilities
Current liabilities
6,016
872
621
940
4,920
240
3,490
16
5,820
16
5,820
6
Assets held for sale
1,449
1,449
944
1,379
207
Other financial assets²
Financial services receivables
Trade receivables
Current assets
Current assets
753
466
4,382
0
1,494
2,889
187
100
Other financial assets²
1,422
791
Financial services receivables
4,676
1,531
3,282
545
3,146
549
82
2,820
178
of which classified as held for sale
1,449
944
Cash and cash equivalents
1,810
time deposits
Marketable securities and
Marketable securities and
5,484
140
5,203
5,203
141
Other financial assets³
Trade receivables
2,010
1,379
1,538
687
851
1,268
0
1,268
1,268
851
Financial services receivables
1,669
725
424
Profit before tax
SAGOTON
911 GT3 RS: Fuel consumption combined (WLTP) 13.4 l/100 km, CO₂ emissions combined (WLTP) 305 g/km | 911 GT3 with Touring Package: Fuel consumption combined (WLTP)
12.94 1/100 km, CO₂ emissions combined (WLTP) 293-292 g/km | 911 S/T: Fuel consumption combined (WLTP) 13.8 l/100 km, CO₂ emissions combined (WLTP) 313 g/km
Milestones Vision
BEYOND
SMART CITY & LIVING
INDUSTRIAL SOLUTIONS
META
33
34
Streamlining
The present-day current of time
will shape the future. Whether
aerodynamics, connectivity,
range, or driving dynamics, the
innovations in the new Macan
are setting benchmarks. At the
same time, Porsche is working
toward a strategic milestone
with full electrification of this
popular series.
S.GO 707E
35
35
In practice, ten percent
less drag means an
increase in range of
21 kilometers.
NEGATIVE-EMISSION MATERIALS
ESG SUPPLY CHAIN
CIRCULAR ECONOMY
SUSTAINABILITY
NEW WORK
PRODUCTION 4.0
DIGITAL EXPERIENCE
Meschke and Schröder met on a regular basis
through the "Porsche Executive Champions"
program, which encourages each member of
the Porsche Executive Board to connect one
on one with a start-up founder once a quarter
to share contacts, tips, and good ideas-ideally
in both directions.
"Through the investment in 1KOMMA5°, we've
secured a partner that can help us enormously
with the electric mobility transformation,"
explains Meschke. He's quick to emphasize
that he and Schröder have concrete ideas for
collaboration. But they won't speak about them
publicly until they're ready for the market.
Porsche also recently invested in more
established companies that already offer
high strategic relevance for the luxury brand:
Group 14 Inc. and HIF Global LLC. "Thanks to the
investment in Group14, we now have access
to a strong supplier of battery cell chemicals
for our Cellforce Group. We wouldn't have been
able to do that without our VC experience," says
Meschke. The same could be said of the early
partnership with HIF Global LLC, one of the
most promising actors in renewable synthetic
fuels, known as eFuels.
Leaning against the railing on the terrace of the
Porsche Design Tower, Meschke looks back at
seven successful years. "Rather than resting
on our laurels, we plan to continue along
this path," he emphasizes. The operational
headquarters of Porsche Ventures were
relocated to Luxembourg in early 2023. "In this
way, we're highlighting the independence of our
VC activities," he continues. "And we're creating
a foundation that will one day also allow us to
attract external investors with our innovation
agenda and investment strategy."
His gaze turns to the vineyards of Stuttgart, as
if he has spotted another unicorn there. "We
have a lot of future plans for Porsche Ventures,"
he says once again. In the coming years,
Porsche plans to invest up to €250 million of
venture capital, some of which will come from
the profits from the first generation of the
Porsche Ventures portfolio.
The funds seem to be well invested, and the
next unicorn is likely just around the corner.
1
Porsche Ventures has been able to operate
independently for the most part since 2023.
"That allows us to make the transaction
process more efficient," says Ulrich Thiem,
Managing Director of Porsche Ventures.
"And investments in start-ups provide us
with earlier access to business ideas and
technology concepts. Porsche Ventures acts
as a sensor for Porsche in new, developing
markets and will therefore also fulfill the
company's strategic duties in the future."The
involvement of a CVC unit additionally benefits
the start-ups, which not only receive new
capital, but also gain access to industrialization
expertise, marketing know-how, and initial
orders from the industry.
modern and global, with Porsche initially
investing in international VC funds. Porsche
Ventures is now involved in multiple funds
with a focus on the US, Europe (e.ventures),
and Israel (Magma and Grove). Porsche has
also invested in the CVC unit of a Chinese car
manufacturer, NIO Capital. "Through fund
investments, we also wanted to learn how the
VC world operates on a fundamental level,"
explains Thiem.
Meschke refers to the period between 2016
and 2022 as "the first generation of our venture
capital activities." During this phase, Porsche
invested directly in 39 new companies and
financed the establishment of 13 companies
by Forward31, the company builder by Porsche
Digital. Five of these investments have already
been sold.
AREAS OF FOCUS
Porsche Ventures has defined four strategic fields of investment
CAR & MOBILITY
CAR-RELATED SERVICES
E-MOBILITY ECOSYSTEM
INTELLIGENT CAR
INTELLIGENT ENTERPRISE
When Porsche conquered the world of venture
capital in 2016, Meschke's approach was
Thomas Wiegand, Head of Aerodynamics and
Aeroacoustics-Development, Weissach
It's all down to this line, a mere stroke on paper.
And yet it marks a a new beginning. The coupé-
like roofline of the Macan and the striking
rear-with its shape so typical of Porsche-
evoke the tight, unmistakable flyline of the
911. But this time, it's not just a reminder
of the Porsche icon. Rather, the shape,
including the rear spoiler, is a groundbreaking
innovation in the all-electric SUV segment.
"The active aerodynamic elements all
contribute significantly to the range," says
aerodynamics specialist Thomas Wiegand.
"We have a rear spoiler that raises automatically,
active cooling flaps at the front air intakes, and
flexible covers on the underbody." Located in
the same building as the Style Porsche design
department, the Weissach wind tunnel gives
form and shape to the streamlining of the
newly developed Macan. It's the first Porsche
based on the Premium Platform Electric
(PPE) created in collaboration with Audi. This
platform not only benefits from development
synergies, but is also highly flexible, enabling
Porsche to implement its own technical and
brand-specific objectives. Full electrification
of the popular model line is an important
milestone on the path to ensuring that more
than 80 percent of the new cars are fully
electrified in 2030-depending on the demand
of customers and the development of
electromobility in the respective regions of
the world.
"What you'll notice at the front is the central
air intake," says Wiegand. "We designed the
cooling flaps to be fully variable and to regulate
temperature. Fully opened, they cool the
battery during the charging process, which
protects the battery and extends its service
life. On the road, they close to reduce drag,
which increases the range. But the variable
flaps open again when the car's temperature
sensors call for cool air. In this way, we can
ensure optimal cooling for the battery and
engines, air conditioning in the interior, and
braking performance in all driving situations."
Miriam Mohamad, Project Manager for Infotainment and
Connect, Macan Model Line, Hemmingen
120 100
<-120 Y
km/h
regulierung
120
120
the cockpit, from tried-and-
tested digital ecosystems,
while maintaining its Porsche
identity.
900 m 49
Get behind the wheel and feel "Porsche". The
unmistakable topology of the cockpit places a
clear focus on the driver. As in the original 911,
the instrument cluster reigns supreme in
the Macan, and is now fully digital. "We've
combined the best of two worlds," says Miriam
Mohamad. "The seamless transition between
the smartphone ecosystem and the car is
important to us." And that's why the 12.6-inch
curved instrument cluster not only displays the
familiar views, but now also features an Apple
CarPlay map for the first time.
Yet another software highlight is the new
Android operating system. "We've further
developed the Porsche identity with its tried-
and-tested operating elements and added
customer-relevant content such as music
and video streaming and gaming apps," says
Mohamad. Anyone who uses popular apps such
as Spotify and YouTube will now have access
to their personal profile, including playlists
and recommendations-just like on their
smartphone. The front passenger also has their
own screen for streaming their favorite series
without distracting the driver, and has the
option to take over navigation and commands
with voice command. Incidentally, the first
to speak is in command. Array microphone
technology can match commands to the
specific seat, thereby avoiding confusion.
And with six additional new languages, the
system is now multilingual like never before.
The augmented reality head-up display is an
additional innovation at Porsche and appears
as a virtual image 87 inches in size at a
distance of ten meters in front of the driver.
Virtual objects are projected onto the actual
surroundings with precise localization for faster
and simpler comprehension of information
about navigation and driver assistance
systems. When you're turning, for example,
virtual navigation arrows hover at intersection
height and show the way. Warnings, too, are
projected onto the actual obstacle to prevent
misunderstanding.
Featuring 56 LEDs that extend from one door.
to another and across the instrument panel,
the standard, innovative communication light
not only fulfills three tasks in the interior-
providing information, issuing warnings,
and creating atmosphere-but also more
effectively highlights characteristic Porsche
features such as launch control and changing
driving modes. In addition, the communication
light visualizes different vehicle situations such
as charging and operates in conjunction with
driver assistance systems. For example, red
pulsating on the door warns of an approaching
road user from behind before the passenger
can open the door.
Milestones Streamlining
B10 Stuttgart
Meschke could imagine a similar collaboration
with Hamburg start-up 1KOMMA5°, which
offers heat pumps, solar modules, battery
storage, and charging stations for electric cars,
preferably as part of a package and intelligently
connected.
We've added new content to
projects important information in the field of
Because drag has a direct impact on range-
ten percent less of the former means an
increase in the latter of 21 kilometers'-the
underbody, too, features variable elements.
Like that of a race car, the underbelly is flat
and closed, even in the area surrounding
the rear wheels. But the panels there are
flexible and minimize drag even in rebound,
an ingenious solution that complements the
streamlined, largely closed wheel rims and
the first-ever aerodynamically optimized
Porsche tire contours. When cruising country
roads, the Macan automatically assumes its
ideal aerodynamic set-up. The rear spoiler
adopts the Eco position, the air flaps close,
and the chassis lowers. Wiegand and his
team identified a drag coefficient of 0.25 for
this situation-the best that a Porsche SUV
has ever achieved.
Based on the reduced drag resulting from the change in consumption, determined on the basis of the WLTP.
36
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
C
The automatically raising rear
spoiler is just one of several active
view with precise localization
aerodynamic elements
Luke
Milestones Streamlining
33
37
38
38
The new augmented reality head-up display
PORSCHE
39
The most prominent investment at that time
was Rimac Automobili, which is now the Rimac
Group. In 2018, Porsche got involved with the
Croatian hypercar manufacturer-and developed
the company into a strategic investment with
unicorn status. A unicorn is a company valued
at US$ 1 billion or more. Following multiple
financing rounds, Porsche now holds 20 percent
of the Rimac Group, which is a Porsche partner
in the joint venture Bugatti Rimac. Rimac
Technology is also well on its way to becoming a
Tier 1 supplier for Porsche.
Through the investment
in 1KOMMA5°, we've
secured a partner that
can help us enormously
with the electric mobility
transformation.
Porsche has sophisticated logistics to integrate
highly personalised customer cars and special
series into regular sports car assembly at
the Zuffenhausen factory. Parts are delivered
with precision down to the minute, ensuring
seamless assembly of the 911 S/T-for
example, when installing the model-specific
engine vent grille, magnesium wheels, or the
racing clutch. Some of the Heritage Design
package components for the 911 S/T, such as
Following final assembly, 60 employees
working in three shifts add the finishing
touches to an average of around 120 cars daily
at Porsche Exclusive Manufaktur, which has
its own trimshop. The second craftsmanship
department, CFK Manufaktur, is positioned
upstream and is something akin to a temporary
departure from the assembly line. Once the
GT models leave the body shop and paint shop,
three employees here see to the lightweight
CFRP components, which are the doors,
fenders, and front hoods.
for the 911 S/T includes full bucket
seats in Black/Classic Cognac
The Heritage Design package
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
26
AFBAG
25
Manufaktur expertise into
industrial production
Albrecht Reimold integrates
Milestones Craftsmanship
Through Porsche Ventures, we
are creating the basis for
convincing external investors of
our innovation agenda and our
investment strategy in the future.
24
"An edition as exclusive as this requires
precise production planning and special tools
developed by our employees themselves,"
explains Reimold. "Our flexible production
system, Porsche Production 4.0, is also
designed for high levels of personalization-
with the fundamental principles of smart, lean,
and green. The variety of potential designs can
transform just about any two-door sports car
into a one of a kind. But a limited special edition
like the 911 S/T also requires a great deal of
highly qualified craftsmanship. That is why for
special models we not only rely on Porsche
Exclusive Manufaktur, but also integrate
another section of production into our sports
car assembly with CFK-Manufaktur. High-
tech solutions and craftsmanship set Porsche
production apart."
The idea was to make the model as light,
powerful, puristic, and seamless as possible.
The story of its origin is quite interesting.
Following the release of the first ultra-sporty
Porsche 911 S in 1969 and the arrival of the
first purist-focused 911 Carrera T a short
time later, customers promptly called for
a combination of the two. What was once
managed primarily in house and occasionally
also by Porsche Motorsport with the unofficial
abbreviation ST is now integrated into the
anniversary model. The 911 S/T combines
elements of the 911 GT3 RS with the body of
the 911 GT3 Touring and specially developed
lightweight components. The naturally
aspirated four-liter, six-cylinder boxer engine
sourced from the GT3 RS applies 386 kW
(525 PS) to the road via a manual transmission
and lightweight clutch. Inspired by the 60th
anniversary, the dream car was limited to
1,963 examples, all of which sold out at the
unveiling.
the full bucket seats in Black/Classic Cognac
and the embossed leather cover of the central
console are delivered directly to the assembly
line. "Our fully connected smart factory allows
us to produce a whole host of model variants
with lots of customization options on a single
assembly line, which is a key hallmark of the
Zuffenhausen site," says Reimold.
Following final assembly, the 911 S/T undergoes
finishing with additional components of the
Heritage Design package at Exclusive
Manufaktur, where employees apply final
details such as the motorsport graphic with
Porsche lettering on the side. Individually
selected equipment features in the interior
such as air vents edged in leather are also
installed here. "With iconic vehicles of superior
quality such as the 911 S/T, we increase the
appeal of our brand time and time again," says
von Platen. "We listen to our customers and
make their dreams come true." This promise
has been a recipe for success-for 75 years.
High-tech solutions and
craftsmanship set Porsche
production apart.
Albrecht Reimold, Member of the Executive Board
These are precisely the objectives pursued by
Porsche Ventures, the CVC unit of Porsche AG,
which has defined four strategic fields
of investment: Car & Mobility, Intelligent
Enterprise, Sustainability, and Beyond.
In the case of CVC, a traditional industry
company acts as investor. This corporate
investment team should fulfill the financial
expectations associated with the investment
and strategically increase value. Through this
investment, the investing company is largely
interested in accessing new technology
and business models and gaining a new
understanding of entrepreneurship.
In the case of VC, an external, independent
investment team collects funds to invest in
new companies. The aim of VC funds like these
is to sell the investments for a profit after the
value of the company has increased.
Venture capital activities refer to the
acquisition of a minority interest in start-
ups, which are recently established and new.
companies, with a distinction made between
traditional venture capital (VC) and what's
known as corporate venture capital (CVC).
One example from the start-up portfolio is
Schröder's 1KOMMA5°, which Porsche got
involved in at the end of 2021. Two years
later, the Hamburg company is one of multiple
success stories in venture capital that
Lutz Meschke can cite.
Standing on the terrace of the Porsche Design
Tower in Stuttgart, Meschke looks out over the
rooftops of the city, satisfied with the progress
made thus far. "Our VC activities have paid
off both strategically and financially. They
generate important ideas in innovation-and
have already helped increase the value of the
company." Porsche has invested approximately
€300 million in 50 different start-ups, with
an investment book value at just under
€400 million.
They appeared to hit it off. Both of them
are entrepreneurs through and through and
have demonstrated foresight time and again.
Meschke is considered to be the father of
venture capital activities at Porsche and in
2016 demonstrated courage and pioneering
spirit when he pursued and initiated the first
steps into the world of venture capital. "As
I've always said, you should never measure
these activities by the value of the individual
companies," he says, thinking back to when it
all began seven years ago. "It's also clear that
not all investments in start-ups will ultimately
take off. The most important thing is strategic
added value for Porsche. We've learned a
whole lot and have incorporated a great many
products, technologies, and agile working
methods into the Group very rapidly."
"The ideas and requests submitted to
Porsche Exclusive and Porsche Classic reveal
the sheer diversity of exclusive customer
dreams," explains von Platen. "We also find
inspiration in the globally active community-
through social media and our Porsche Clubs."
Close to a quarter of a million enthusiasts are
members of more than 700 Porsche Clubs
in 86 countries. On the basis of intensive
customer contact, Porsche develops wish lists
for very highly positioned models in the GT
range as well as for special limited editions.
Take the 911 S/T, for instance, a gift to mark
the series' 60th anniversary.
"Philipp is young, dynamic, self-confident,
and impressive. He's very good at structuring
complicated issues and knows how to explain
things clearly," says Meschke, full of praise.
"Lutz's office is much smaller and more modest
than I was expecting," adds Schröder. "I really
enjoyed the meeting. It was much less
complicated than I thought it would be."
29
Ventures, now has employees at five locations in
Luxembourg, Berlin, Palo Alto, Tel Aviv, and Shanghai,
who are tasked with boosting the innovative power of
Porsche using venture capital.
Porsche AG has been systematically developing a start-up
ecosystem since 2016. Its venture capital unit, Porsche
Vision
27
27
responsible for Production and Logistics
In May 2023, Lutz Meschke and Philipp Schröder
got together in person for the first time. The
Deputy Chairman of the Executive Board and
Member of the Executive Board, Finance and
IT at Porsche AG welcomed the cofounder
and CEO of cleantech start-up 1KOMMA5° to
his office in Stuttgart-Zuffenhausen. The two
of them turned up with their own personal
expectations and, within an hour, were both
pleasantly surprised-and on first-name terms.
Special Editions Born from Dreams
PORSCHE
The imposing 1983 Porsche 935
"Street" for Mansour Ojjeh
of an Arabian Prince
Porsche 959 as a treasure worthy
ABOVE, LEFT A1987
customer dreams
fulfills exclusive
Detlev von Platen
20
LEFT The custom interior
expertly reflects the color of
20
30
"
Milestones Vision
31
Lutz Meschke can tell success
stories about Porsche's venture
capital activities
32
Lutz Meschke, Deputy Chairman of the Executive Board and
Member of the Executive Board responsible for Finance and IT
Lutz Meschke
the exterior
Individuality Based on Tradition
Even in the 1950s, Ferry Porsche viewed
special requests as orders, whether race car
modifications or an elegant car radio. When
the 911 replaced the 356, customers began
sharing more and more ideas. To maintain the
quality of performance-enhancing measures,
Porsche began officially selling spare parts for
racing-along with fitting advice-in 1970. In
response to growing demand for support on
the racetrack, the company soon established
its own customer racing department,
which was followed by the special request
department for modifying series production
cars in 1978. Alongside the tuning trend,
the desire to upgrade the interior took off in
the 1980s, with wood and leather, wild color
patterns, and room-filling hi-fi systems. In
response, Porsche was the world's first car
manufacturer to establish its own department
for in-factory customization in 1986. Its
range now encompasses more than 1,000
Porsche Exclusive Manufaktur options for
elegant details and high-tech solutions. And
the "Paint to Sample" and "Paint to Sample
Plus" programs offer an almost endless
configuration spectrum for exterior colors. The
new "Personalize" product program enables
personalization directly in the configurator.
More involved customer requests, including
custom cars, are the responsibility of the
special request program.
23
PORSCHE
turbo
22
Detlev von Platen, Member of the Executive Board
responsible for Sales and Marketing
never give up.
Dreams can be
powerful. They
encourage us to
Realizing customers' dreams enriches
the company's history with fascinating
custom cars, some of which would qualify
as eccentric or could be displayed at a
museum. Customization is a growing market.
These days, more than 90 percent of all 911
customers choose at least one option from
the Porsche Exclusive Manufaktur portfolio.
And limited-run, meticulously designed
special editions often sell out shortly after
their unveiling.
of 948 examples of the flatnose 911 Turbo had
been ordered.
Extraordinary Designs from the Past
Some customers have aesthetic or racing
dreams they want to apply to Porsche. And
then there are those who are looking for
customized complete technology and design
packages. But this is nothing new. For example,
Herbert von Karajan ordered his very own
lightweight version of the 911 Turbo 3.0 in
1974. He applied the same level of dedication
to selecting the car's performance equipment
upgrades that he did to conducting the Berlin
Philharmonic orchestra. His car was the only
911 Turbo with the lightweight body of the
Carrera RS-and ended up on the cover of
the Berühmte Ouvertüren album sporting
the Martini Racing look. Or, for instance,
take Mansour Ojjeh, the former owner of the
Techniques d'Avant Garde (TAG) investment
firm, who ordered the Formula 1 engine from
Porsche and, in 1983, requested a street
version of the successful 935 race car. The
result was a one-of-a-kind 409 PS Turbo in
Candy Apple based on the Porsche 930. Unlike
the regular 911, this model featured a flat
RIGHT It took a great deal of
finesse to orchestrate the light-
weight version of the 911 Turbo
Karajan's wish list extended to
this signature
LEFT In 1974, Herbert von
von Karajan
21
Milestones Craftsmanship
nose with pop-up headlights. Ojjeh requested
a majestic rear spoiler along with the finest
leather in light beige, wood paneling, and a
Clarion hi-fi system in the interior. His flat-
nosed 935 "Street" proved to be quite a hit,
and Porsche saw the potential. By 1989, a total
The Porsche Design Tower was planned with
foresight-including a photovoltaic system
on the roof of the Porsche Center Stuttgart
of which granted during the reporting period
%
%
Familien-Holding GmbH
Ferdinand Alexander
%
%
%
%
Familie Porsche
%
%
%
Beteiligung GmbH
Porsche Automobil Holding SE
Porsche GmbH
Ferdinand Porsche
Familien-Privatstiftung
%
Dr. Wolfgang Porsche, Dr. Dr. Christian Porsche, Dipl.-Design. Stephanie
Porsche-Schröder, Ferdinand Rudolf Wolfgang Porsche, Felix Alexander
Porsche, Gerhard Anton Porsche, Dr. Ferdinand Oliver Porsche, Mag. Mark
Philipp Porsche, Kai Alexander Porsche, Dr. Geraldine Porsche,
Ing. Hans-Peter Porsche, Peter Daniell Porsche, Diana Porsche
City and country of registered
office:
4. Names of shareholder(s) holding directly 3% or more voting rights, if different from 3.
Porsche Holding Stuttgart GmbH
Porsche Automobil Holding SE
5. Date on which threshold was crossed or reached:
December 30, 2022
Dr. Wolfgang Porsche, Dr. Dr.
Christian Porsche, Dipl.-Design.
Stephanie Porsche-Schröder,
Ferdinand Rudolf Wolfgang
Porsche, Felix Alexander Porsche,
Gerhard Anton Porsche, Dr.
Ferdinand Oliver Porsche, Mag.
Mark Philipp Porsche, Kai
%
%
%
Alexander Porsche, Dr. Geraldine
Porsche, Ing. Hans-Peter Porsche,
Peter Daniell Porsche, Diana
Porsche
Ferdinand Porsche
%
%
25.01%
Name:
%
VOLKSWAGEN
through instruments
(total of 7.b.1. + 7.b.2.)
% (7.a. + 7.b.)
voting rights of
issuer
Dr. Wolfgang Porsche, Dr. Dr.
Christian Porsche, Dipl.-Design.
100.00%
0.00%
Total number of
Previous notification
Granted performance shares based on the Porsche preferred share
168,974
59,369
Shares
120,266
Shares
Granted performance shares based on the Volkswagen preferred
share
Shares
Shares
Total of both
% of voting rights
(total of 7.a.)
%
%
%
AKTIENGESELLSCHAFT
Porsche Holding Stuttgart GmbH
74.99%
%
74.99%
6. Total positions
%
%
%
Resulting situation
% of voting rights
attached to shares
25.01%
9
3. Details of party subject to the notification obligation
Other reason:
74.99%
7. Notified details of the resulting situation
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
absolute
%
Direct (section 33
WpHG)
%
Indirect (section 34
WpHG)
Indirect
(section 34
DE000PAG9113
0
455,500,000
Total
Direct (section 33
WpHG)
74.99%
Porsche Holding Stuttgart GmbH
AKTIENGESELLSCHAFT
%
%
%
HMP Vermögensverwaltung GmbH
%
%
%
Porsche Automobil Holding SE
25.01%
%
25.01%
VOLKSWAGEN
%
%
%
455,500,000
Completion of the share purchase agreement
0%
100.00%
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
%
Cash or
physical
settlement
Voting rights Voting rights
absolute
%
Total
8. Information in relation to the party subject to the notification obligation
Full chain of controlled undertakings starting with the ultimate controlling natural person or legal entity:
%
Name
% of voting rights through
instruments
(if at least held 5% or more)
Total of both
(if at least held
5% or more)
1. Details of issuer
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart, Germany
2. Reason for notification
% of voting rights (if at
least held 3% or more)
%
Voting rights
Voting rights
absolute
Expiration or
maturity date
Exercise or
conversion period
Total
9. In case of proxy voting according to section 34 (3) WPHG
Date of Annual General Meeting:
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Exercise or
conversion period
Expiration or
maturity date
% of voting rights attached to shares
% of voting rights through instruments
Total of both
Conditional transfer
claim
%
%
%
47.2 Publication pursuant to section 40 (1) WpHG from January 2, 2023
WPHG)
100.00%
Dr. Hans Michel Piëch GmbH
29
4
The Turkish antitrust authorities, which investigated similar matters, issued their final decision in January 2022
finding that there had been alleged anti-competitive behavior, but that it did not have an impact on Türkiye, which
is why no fines were imposed on the German car manufacturers. Legally binding grounds for the decision have not
yet been given. Volkswagen AG, AUDI AG and Porsche AG have filed an appeal.
The South Korean antitrust authorities KFTC analyzed potential breaches based on the EU subject matter. The final
report of the case handler responsible at KFTC was issued in November 2021. Volkswagen AG, AUDI AG and
Porsche AG will issue a response to this. In April 2023, the KFTC issued its final decision together with the grounds
for the decision, which covers the announcements made by the authorities from its press release from February
2023. According to this, Porsche AG is not affected by the alleged antitrust violation and is therefore not covered
by the fines decision.
VIOLATIONS OF COMPETITION LAW (KOREA, TÜRKIYE, CHINA)
Following the EU Commission's decision to impose a fine (July 2021), several class actions were filed in the United
Kingdom at the end of 2021, among others against Porsche AG and several of its UK subsidiaries. The lawsuits are
expected to be served in the course of 2024. Neither provisions nor contingent liabilities have been recognized as a
realistic risk assessment of these proceedings is currently not possible.
In July 2021, the EU Commission, as part of a settlement decision, imposed a fine of €502 million on the three
brands of the Volkswagen Group concerned (Volkswagen AG, AUDI AG, Porsche AG). The subject matter of the
European Commission's decision regarding the fine is the cooperation between German car manufacturers
regarding the development of technology to purify emissions of diesel passenger cars fitted with SCR systems that
were sold in the European Economic Area. The Volkswagen Group accepted the fine decision of the EU
Commission and did not appeal, thus rendering the decision legally binding. There was no recourse against
Porsche AG by Volkswagen AG.
ANTITRUST INVESTIGATIONS: SCR SYSTEMS
In 2019, the Chinese antitrust authorities initiated proceedings against companies including Volkswagen AG,
AUDI AG and Porsche AG due to similar matters and issued requests for information. Neither provisions nor
contingent liabilities have been recognized. In the opinion of the Porsche AG Group, the current status of the
investigations does not permit a final assessment of the risk.
Other litigation
In a notice to Porsche AG dated December 20, 2023, the KBA determined that the original calibrations used to
control exhaust gas recirculation in Cayenne and Panamera 3.0 IV6-TDI EU5 Generation 1 and 2 vehicles were
prohibited defeat devices. The measures already underway (Generation 2) or agreed by Porsche AG during the
hearing (Generation 1) were provisionally recognized as suitable by the KBA. Porsche AG filed an objection on
January 18, 2024 with regard to the finding of non-conformity associated with this decision.
For the Cayenne and Panamera 3.0 IV6-TDI EU5 Generation 2 vehicles with EU type approvals, an action plan had
already been approved by the KBA on September 11, 2020. A software update for these vehicles approved by the
KBA had already been available since the beginning of 2020. On February 28, 2023, Porsche received a
notification of a hearing from the KBA for these vehicles too, in which the KBA deems the aforementioned thermal
windows to be a prohibited defeat device. Furthermore, the KBA demands that Porsche AG name all other vehicle
concepts that include a comparable temperature-controlled exhaust gas recirculation system. Porsche duly
delivered an opinion on the notification of a hearing from the KBA. In its opinion, Porsche AG explains why,
according to Porsche's legal position, the aforementioned thermal windows are not a prohibited defeat device.
In November 2022, an action plan for a software update for the Euro 5 3.0-liter-V6-diesel Generation 1 Cayenne
with EY type approvals was submitted to the KBA in the course of ongoing talks with the authorities on the impact
of this decision. On January 12, 2023, Porsche AG received a notification of a hearing on this vehicle from the KBA,
in which the KBA now deems said thermal windows to be a prohibited defeat device. Porsche AG considers this
provisional classification by the KBA to be without merit. It has duly delivered an opinion on the letter.
In July 2022, the European Court of Justice (ECJ) ruled in one specific case that a so-called thermal window (i.e.,
a built-in temperature-dependent control of exhaust gas recirculation) in the range of 15°C and 33°C outside
temperature represents a defeat device. In this context, the ECJ has developed a new, unwritten criterion
according to which a thermal window, even if it serves to prevent sudden and extraordinary engine damage, is
inadmissible if it leads to the exhaust gas recirculation being only active to a limited extent for the "largest part of a
year under the driving conditions which are actually prevailing in the European Union area".
THERMAL WINDOWS
4,571
Neither provisions nor contingent liabilities have been recognized as there are currently no specific indications that
this will result in any significant outflow of resources.
USA AND CANADA ANTITRUST CLASS ACTION
In October 2021, the U.S. Court of Appeal confirmed the ruling of the U.S. District Court for the Northern District of
California from October 2020 to reject the class action against Porsche AG and other companies of the
Volkswagen Group and rejected the plaintiffs' appeal. The plaintiffs had alleged that several car manufacturers had
conspired to unlawfully increase vehicle prices in violation of US antitrust and consumer protection law. The
plaintiffs have appealed against the rejection of their appeal. In June 2022, the U.S. Supreme Court definitively
rejected the petition filed by the plaintiffs, thus rendering the U.S. Court of Appeal's ruling legally binding.
Legal action was also initiated in Canada against several car manufacturers including Porsche AG and several of its
Canadian subsidiaries as well as other Volkswagen Group companies with similar allegations. In 2023, the plaintiffs
announced that they no longer wished to pursue the pending lawsuits and several class actions were withdrawn in
November and December 2023. The withdrawal of the last pending class action has been requested by the
plaintiffs and is still subject to the approval by the court of competent jurisdiction, which is expected in the first
quarter of 2024. Neither provisions nor contingent liabilities have been recognized as an assessment of these
proceedings was not possible.
CONFORMITY OF PRODUCTION MEASUREMENTS
For the focus topics discussed, provisions were recognized covering the above mentioned risks.
The NHTSA (National Highway Traffic Safety Administration) and the EPA are expected to adjust the CO2 Credits
(Corporate Average Fuel Economy ("CAFE"/Greenhouse Gas ("GHG")) for some of Porsche AG's vehicles. The
expected payments will come to US$7 million.
Porsche AG concluded a settlement totaling US$6 million with the CARB (California Air Resources Board) in
December 2022 on issues including sport functionalities.
A settlement-most likely in the single-digit million range-is expected for the second quarter of 2024.
A class action in this regard is also pending in Canada. However, at around 10%, the number of vehicles potentially
affected is considerably lower than in the USA. Talks are currently being held with representatives of the plaintiffs.
To date, six different class actions relating to these issues have been filed in the USA. According to the statement
of claims, software and/or hardware allegedly used in the affected vehicles resulted in actual exhaust emissions
and/or fuel consumption being higher than legally permitted. In January 2021, a consolidated complaint was filed
combining the six filed class actions into one lawsuit. The six lawsuits were originally directed against Porsche AG
and its US importer subsidiary, Volkswagen AG as well as AUDI AG, although not every company is being sued in all
of the cases at hand. In December 2021, a draft settlement of US$85 million (including a potential additional
payment liability of US$5 million) was negotiated with the representatives of the plaintiffs. The agreement has
since been finally approved following the final hearing by the US judge responsible on November 9, 2022. Payment
was made in the fiscal year 2022 and the provision utilized in the same amount. An appeal was filed against the
agreement in December 2022. However, based on the current assessment, it is unlikely that this will have a
significant impact on the financial significance of the settlement overall. Based on the information available, the
additional payment liability of US$5 million does not apply.
382
↑↓ ↑ 0 |||
381
Consolidated Financial Statements Notes to the consolidated financial statements
8
In June 2022, the US Department of Justice declared that it would not instigate an investigation for the focus
topics ("declination").
With regard to vehicles for various markets worldwide, Porsche AG has identified potential regulatory issues.
Potential issues relating to sport functionalities were found. These issues further relate to questions of the
reliability of specific hardware and software components that were used in typing measurements. In individual
cases, there may be deviations from the series status. The internal investigations into this matter at Porsche AG
have largely been completed. Based on the results of the internal investigation, this is an historical matter. Current
production is not affected. These issues are not related to the diesel issue. Porsche AG cooperated with the
responsible authorities, including the public prosecutor's office in Stuttgart, which instigated a criminal
investigation against twelve (former) employees at Porsche AG. Proceedings against all those accused were closed
pursuant to section 153 StPO in April 2022. Administrative fine proceedings were not instigated against the
company.
RELIABILITY OF SPECIFIC HARDWARE AND SOFTWARE COMPONENTS ("FOCUS TOPICS")
2022
Porsche AG has also investigated potential issues regarding conformity of production measurements. The internal
investigation has been completed. These issues are not related to the diesel issue. Porsche AG is cooperating with
the relevant authorities, including the KBA and the public prosecutor's office in Stuttgart. However, based on the
information available, no administrative fine proceedings have been instigated against the company. Proceedings
brought by the public prosecutor's office in Stuttgart against unknown were discontinued in August 2022
pursuant to section 170 (2) StPO. The only significant deviation determined from internal measurements of just
over 4% compared to the manufacturer's figure for a model year of a Cayenne derivative with UNECE type approval
according to UN R101 issued by the KBA was reported to the KBA. On March 20, 2023, the KBA submitted a
notification of a hearing on this vehicle. According to this, the vehicle exceeds the values seen as relevant by the
KBA and more measurements may be taken to verify the manufacturer's figure. Porsche AG has duly delivered an
opinion on the notification and recommended that further action be coordinated with the local authorities
depending on the relevance of the manufacturer's figure. This was approved by the KFA. The current clarification of
the matter is expected to be completed by March 2024. There are only 108 vehicles are on the market from the
relevant model year 2018.
CNY
100.00 100.00
16,220
2022
18,750
2,070
2022
4,716
53,873
970
7,912
290
2022
Consolidated Financial Statements Notes to the consolidated financial statements
399
380
2022
2022
55,596
119,268
129,100
98,374
2022
CNY
7.8700
Porsche Consulting Ltd., Shanghai
CNY
7.8700
Porsche Consulting S.r.I., Mailand
EUR
Porsche Consulting, Inc., Atlanta / GA
Porsche Design GmbH, Zell am See
USD
1.1077
EUR
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
7.8700
€ million
Neither provisions nor contingent liabilities have been recognized as there are currently no specific indications that
this will result in any significant outflow of resources.
In March 2022, the European Commission and the Competition and Markets Authority (CMA), the English antitrust
authorities, searched the premises of various automotive manufacturers and automotive industry organizations
and/or served them with formal requests for information. Volkswagen AG has received a group-wide information
request from the European Commission and the CMA. The investigation relates to European, Japanese, and Korean
manufacturers as well as national organizations operating in such countries and the European organization
43. REMUNERATION BASED ON PERFORMANCE SHARES
(SHARE-BASED PAYMENT)
Executive Board and top management
For all beneficiaries, the payment amount under the performance share plans is limited to 200% of the target
amount.
For all other beneficiaries, the amount paid out is determined by multiplying the target amount by the degree of
target achievement for the annual earnings per Porsche preferred share and the ratio of the closing reference price
at the end of the term plus a dividend equivalent and the initial reference price. Target achievement is based on a
four-year performance period with one year of that period relating to future periods.
The number of performance shares is granted on the basis of a three-year/four-year, forward-looking performance
period in line with the degree of target achievement for the annual earnings per Volkswagen/Porsche preferred
share. Settlement is effected in cash at the end of the performance period. The payment amount corresponds to
the final number of determined performance shares multiplied by the respective closing reference price at the end
of the term plus a dividend equivalent.
initial reference price of Volkswagen or Porsche preferred shares and is granted to the respective beneficiary purely
for calculation purposes.
Following the IPO in 2022, the Supervisory Board of Porsche AG decided to adjust management remuneration from
fiscal year 2023 onwards. As a result of this change, Porsche AG has three share-based remuneration models until
the end of the respective terms: The performance share plan based on Volkswagen preferred shares, the
performance share plan based on Porsche preferred shares and the IPO bonus.
2022
41,043
37,639
40,515
528
675
678
36,964
469
38,108
In 2019, the group of persons eligible as performance share plan beneficiaries based on the Volkswagen preferred
shares was expanded to include top managers. The first performance shares were granted to top managers at the
beginning of 2019. At the end of 2019, the group of persons eligible as performance share plan beneficiaries
based on the Volkswagen preferred shares was expanded to include all other members of management. At the
beginning of 2020, the members of management were granted remuneration based on performance shares for the
first time. In the course of introducing the performance share plan based on the Porsche preferred shares, no
further Volkswagen performance shares will be granted. Grants have been made to members of the Executive
Board and members of top management. The group of persons eligible as performance share plan beneficiaries
based on the Porsche preferred shares includes all members of the Executive Board, top management and all other
members of management.
The performance share plan based on the Volkswagen preferred shares for top management and the other
beneficiaries works in essentially the same way as the performance share plan granted to members of the
Executive Board. Upon introduction of the performance share plan based on the Volkswagen preferred shares, top
managers were guaranteed a minimum bonus amount for the first three years based on the remuneration for 2018,
while the Executive Board and all other beneficiaries received a guarantee for the first three years based on the
remuneration for 2019.
12
€ million
10
17
€ million
8
12
€ million
Dec. 31, 2022
Dec. 31, 2023
Fair value on granting date
Total expense of the reporting period
Carrying amount of the obligation
Intrinsic value of the obligation
The performance period of the performance share plan based on the Volkswagen preferred shares has a three-year
term, while the performance period of the performance share plan based on the Porsche preferred shares has a
four-year term. For the members of the Executive Board and the top management, upon awarding the long-term
incentive (LTI) the annual target amount under the LTI is converted into performance shares on the basis of the
Performance shares
As part of the IPO, the Supervisory Board of Porsche AG also granted an IPO bonus for the members of the
Executive Board in the form of a virtual share plan. The aim of this IPO bonus is to provide appropriate incentives
for the commitment of the Executive Board members in preparing the IPO and, by its design, take into account the
long-term success of the IPO.
39,837
ANTITRUST INVESTIGATIONS (RECYCLING OF END-OF-LIFE VEHICLES)
9,444
27,520
10,004
4,132
4,356
Wages and salaries
2022
2023
€ million
Social security contributions, pension and other benefit costs
thereof pension costs
41. PERSONNEL EXPENSES
Further disclosure in respect of estimates
Neither provisions nor contingent liabilities were recognized because the early stage of the proceedings makes a
realistic assessment of the risk exposure impossible.
On October 13, 2022, Porsche submitted its response with technical and legal arguments. Proceedings are
currently ongoing. All of the KBA's queries to date have been duly answered. Should a notice be issued, the
resulting costs for retrofits would depend heavily on the content. This would affect around 12,000 vehicles within
the EU, of which around 5,200 in Germany.
In August 2022, Porsche AG received a notification of a hearing from the KBA, in which it criticizes the use of
certain noise functions in the 991 II Carrera 4S and 981 Cayman S vehicles. The KBA invited Porsche AGH to
comment and also requested additional measurements.
KBA HEARING ON NOISE FUNCTIONS
European Automobile Manufacturers' Association (ACEA), which are suspected of having agreed from 2001/2002
to the present to avoid paying for the services of recycling companies that dispose of end-of-life vehicles (ELV).
Also alleged is an agreement to refrain from competitive use of ELV issues, that is, not to publicize relevant
recycling data for competitive purposes. The violation under investigation is alleged to have taken place in
particular in working groups of the ACEA. A response was given to the European Commission's and the CMA's
information requests. Neither provisions nor contingent liabilities have been recognized as an assessment of these
proceedings is currently not possible.
In accordance with IAS 37.92, no further disclosures are made in respect of estimates of the financial impact or
disclosures relating to uncertainties surrounding the amount or timing of provisions and contingent liabilities in
connection with material litigation, so as not to prejudice the outcome of the proceedings or the company's
interests.
794
829
226
2023
1 The direct area includes all employees directly involved in the vehicle manufacturing process.
Employees in the release phase of partial retirement
Trainees
Indirect area
Direct area¹
Average number of employees
42. AVERAGE NUMBER OF EMPLOYEES DURING THE YEAR
384
↑↓ ↑ ||
383
Consolidated Financial Statements Notes to the consolidated financial statements
4,961
5,149
324
29,833
%
%
%
0
0
1
Members of the Executive Board and the
Supervisory Board Porsche AG
1
1
1
0
Total
€ million
Porsche und Piëch families
Porsche SE
State of Lower Saxony, its majority interests and
joint ventures
5,079
Other related parties
Pension plans
128
203
3
207
Non-consolidated entities
175
72
256
203
Joint ventures and their majority interests
2
2
53
38
Associates and their majority interests
6
6
5,320
Porsche Holding Stuttgart GmbH
7,197
Receivables
2,748
Porsche Holding Stuttgart GmbH
40
67
4,079
Non-consolidated entities
2,015
708
147
95
Joint ventures and their majority interests
60
56
6
189
8,017
6,399
Volkswagen AG - Group
Liabilities
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
0
0
0
0
0
0
0
0
0
33
6,604
1
6,233
5,030
7
Shares
Shares
56,960
85,440
85,440
Consolidated Financial Statements Notes to the consolidated financial statements
385
€ million
↑↓ ↑ |||
44. RELATED PARTY DISCLOSURES IN ACCORDANCE WITH IAS 24
In accordance with IAS 24, related parties are natural persons and companies that can be influenced by
Porsche AG, that can exert influence on Porsche AG or are under the influence of another related party of
Porsche AG.
Since August 1, 2012, Volkswagen AG had held 100% of the shares in Porsche AG via Porsche Holding
Stuttgart GmbH. On September 28, 2022, Volkswagen placed 25% of the preferred shares (including surplus
allocation) of Porsche AG with investors. Since the following day, these preferred shares have been traded on the
stock exchange. Since the end of the stabilization period on October 11, 2022, the free float of the preferred
shares amounts to 24.2% of the preferred share capital of Porsche AG. The basis for the IPO was a comprehensive
agreement on the conclusion of several contracts between Volkswagen and Porsche SE. In this context, both
parties agreed, among other things, that Porsche SE acquire 25% of the ordinary shares plus one ordinary share of
Porsche AG from Volkswagen. There are restrictions on the sale of these ordinary shares of Porsche AG by
Porsche SE until 2027. The other shares in ordinary share capital of 75% less one ordinary share in Porsche AG
continue to be held by Porsche Holding Stuttgart GmbH as of the reporting date.
As of the reporting date, Porsche AG remains a subsidiary of Porsche Holding Stuttgart GmbH. A control and profit
and loss transfer agreement was in place between Porsche AG and Porsche Holding Stuttgart GmbH up to and
including December 31, 2022. The control agreement ended pursuant to section 307 AktG as of December 31,
2022 and with it the contractual group with Volkswagen AG. In connection with the IPO and the sale of ordinary
shares in Porsche SE, Volkswagen AG and Porsche SE agreed on a significant participation of representatives of
Porsche SE on the Supervisory Board of Porsche AG. Final decision-making rights of the shareholder
representatives on the Supervisory Board determined by Volkswagen with regard to directing relevant activities
within the meaning of IFRS 10 at Porsche AG continue to result in the control of Porsche AG by Volkswagen AG
(de facto group).
As of the reporting date, Porsche SE held the majority of voting rights in Volkswagen AG. The creation of rights of
appointment for the State of Lower Saxony was resolved at the extraordinary general meeting of Volkswagen AG
on December 3, 2009. This means that Porsche SE, via the Annual General Meeting, cannot elect all shareholder
representatives to Volkswagen AG's supervisory board for as long as the State of Lower Saxony holds at least 15%
of the ordinary shares. The Porsche SE group (Porsche SE) is therefore classified as a related party as defined by
IAS 24.
As part of the transfer of the operating business and, in turn, the transfer of Porsche Holding Stuttgart GmbH by
Porsche SE to Volkswagen AG in the fiscal year 2012, Porsche SE entered into the following agreements with
Volkswagen AG and entities of the Porsche Holding Stuttgart GmbH group in particular:
386
7
5
€ million
Members of management
In the fiscal year, all other beneficiaries were granted a target amount, based on a target achievement of 100%, of
€50 million (2022: €65 million). As of December 31, 2023, the total carrying amount of the obligation
corresponding to the intrinsic value of the liabilities amounted to €56 million (2022: €71 million). In the reporting
period, a total expense of €56 million (2022: €71 million) was recognized for this amount granted.
IPO bonus
The IPO bonus was granted in three tranches. Each third is paid out on the anniversary of the IPO of Porsche AG.
The first sub-tranche was paid out during the current fiscal year. The payment amount of the IPO bonus is subject
to a cap and a floor for each sub-tranche.
Total expense of the reporting period
Carrying amount of the obligation
Intrinsic value of the obligation
Fair value at grant date
Granted performance shares
of which granted during the reporting period
Dec. 31, 2023
Dec. 31, 2022
€ million
7
€ million
5
7
- Under the transfer agreement, Porsche SE in certain circumstances holds Porsche Holding Stuttgart GmbH,
Porsche AG and their legal predecessors harmless from tax disadvantages that exceed the obligations from periods up
to and including July 31, 2009 recognized at the level of these entities. In return, Volkswagen AG has undertaken to
reimburse Porsche SE for any tax benefits of Porsche Holding Stuttgart GmbH, Porsche AG and their legal
predecessors and subsidiaries relating to tax assessment periods up to July 31, 2009.
6,685
- Porsche SE under certain circumstances holds its subsidiaries transferred under the contribution agreement,
Porsche Holding Stuttgart GmbH and Porsche AG and its subsidiaries, harmless from certain obligations towards
Porsche SE pertaining to the period up to and including December 31, 2011 and that go beyond the obligations
recognized for these entities for this period.
- Various information, conduct and cooperation duties were agreed between Porsche SE and the Volkswagen Group.
- Volkswagen AG assumed responsibility for general financing for Porsche AG in the same way as it does for other
subsidiaries of Volkswagen AG.
2022
Supplies and services received
2023
2022
0
0
2023
0
2
0
0
0
Volkswagen AG - Group
4,889
0
State of Lower Saxony, its majority interests and
joint ventures
Porsche SE
Porsche und Piëch families
In connection with the IPO of Porsche AG, on September 5, 2022, Porsche AG and Volkswagen AG concluded an
agreement regulating future relations, in particular the cooperation, coordination and collaboration regarding
certain matters. The agreement regarding collaboration in tax matters between Porsche AG and Volkswagen AG of
September 18, 2022, encompasses the following in particular:
- Volkswagen AG bears the tax risk of additional taxes, to the extent to which these are not already covered by
corresponding risk provisioning.
- Volkswagen AG assumes all pre-IPO costs, which also include potential taxes from pre-IPO structuring.
- Statement of financial position items that resulted in higher income taxes at Volkswagen AG for assessment periods
until the end of 2022, but can lead to tax benefits at Porsche AG through reversal effects in subsequent years from
2023 onwards, will be reimbursed to Volkswagen AG.
- Various information, conduct and cooperation duties were agreed between Porsche AG and Volkswagen AG.
Furthermore, Porsche AG entered into an industrial cooperation agreement with Volkswagen AG on September 5,
2022, which regulates the future design of the industrial and strategic cooperation between the Volkswagen
Group and the Porsche AG Group. Under this agreement, Porsche AG and Volkswagen AG have agreed to further
develop and detail out the existing cooperation between the contractual parties in the fields of purchase and
procurement in a separate agreement. Therefore, and in accordance with the specifications of the Industrial
Cooperation Agreement, Porsche AG and Volkswagen AG entered into a purchasing and procurement cooperation
agreement. This agreement contains general principles for the continuation of the existing cooperation between
the contractual parties, including rules on its general organization as well as specific provisions for certain essential
areas of purchasing and procurement.
Pursuant to a consortium agreement, the Porsche and Piëch families have direct and indirect control, respectively,
over Porsche SE. Therefore, relations with individuals and entities of the Porsche and Piëch families are subject to
the disclosure requirements.
Pursuant to the announcement from January 8, 2024, the State of Lower Saxony and Hannoversche
Beteiligungsgesellschaft Niedersachsen mbH, Hanover, hold 20.00% of the voting rights in Volkswagen AG on
December 31, 2023. Furthermore, as mentioned above, the Annual General Meeting of Volkswagen AG resolved on
December 3, 2009 that the State of Lower Saxony may appoint two members of the Supervisory Board (right of
appointment).
The tables below show the amounts of the supplies and services transacted as well as outstanding receivables and
liabilities between fully consolidated companies of the Porsche AG Group and related parties.
Consolidated Financial Statements Notes to the consolidated financial statements
387
↑↓ ↑ 0 |||
388
Related parties
Supplies and services rendered
€ million
- It was also agreed to allocate any subsequent VAT receivables and/or VAT liabilities arising from transactions up to
December 31, 2009 between Porsche SE and Porsche AG to the entity concerned.
Associates and their majority interests
137
42
0
455,500,000
0.00%
100.00%
5
3
DE000PAG9113
Total
100.00%
0
4
0
0
5
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
455,500,000
Indirect (section
34 WpHG)
Direct (section 33
WPHG]
Indirect (section 34
WpHG)
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
100.00%
100.00%
Total number of
voting rights of
Issuer
455,500,000
€ million
Financial statement audit services
Other assurance services
Tax advisory services
Other services
absolute
%
2023
2022
Direct (section 33
WPHG)
Expiration or
maturity date
0.00%
7.5%
Exercise or
conversion period
Voting rights
↑↓ ↑ |||
392
8. Information in relation to the party subject to the notification obligation
Full chain of controlled undertakings starting with the ultimate controlling natural person or legal entity:
Name
% of voting rights (if at
least held 3% or more)
391
% of voting rights
instruments
(if at least held
Total of both
(if at least held 5% or
more)
5% or more)
Dr. Hans Michel Piëch
through
Voting rights
Consolidated Financial Statements Notes to the consolidated financial statements
Total
%
%
Total
%
The financial statement audit services related to the audit of the consolidated financial statements of Porsche AG
and of annual financial statements of German group companies, to reviews of the interim consolidated financial
statements of Porsche AG as well as of interim financial statements of German group companies during the year.
Other assurance services mainly related to non-statutory audits as well as non-statutory assurance services for
capital market transactions.
46. SUBSEQUENT EVENTS
There were no events of significance for the net assets, financial position and results of operations after the end of
fiscal year 2023.
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Conditional transfer
claim
Expiration or
maturity date
Exercise or
conversion period
Cash or
physical
settlement
Voting rights
absolute
%
Voting rights
absolute
Total of both
% (7.a. + 7.b.)
% of voting rights
through instruments
(total of 7.b.1.7.b.2.)
7. Notified details of the resulting situation
Receivables from the Volkswagen Group mainly relate to cash pool receivables of €4,064 million (2022:
€0 million), loans granted of €530 million (2022: €4,275 million), receivables from intragroup balances of
€85 million (2022: €2,391 million) as well as trade receivables of €407 million (2022: €502 million).
The supplies and services rendered to the Volkswagen group contain amounts of €119 million (2022:
€458 million) for service transfers in the area of research and development.
A group agreement was concluded between Porsche AG and Volkswagen AG on the indemnification and
reimbursement of costs in connection with the IPO of Porsche AG. Under this group agreement, Porsche AG was
reimbursed costs of €0 million (2022: €50 million) and Volkswagen AG has agreed to indemnify and hold
Porsche AG harmless from any liabilities, losses, and damages resulting from or related to the IPO.
In addition, there were other obligations not recognized in the statement of financial position in 2023 to
Volkswagen Group companies amounting to €365 million (2022: €129 million).
Porsche AG received a capital contribution from Porsche Holding Stuttgart GmbH in 2023 in the amount of
€0 million (2022: €3,057 million).
Financial services rendered to that company led to interest income of €0 million (2022: €207 million).
Receivables from the State of Lower Saxony mainly relate to bonds of €0 million (2022: €33 million).
Receivables from non-consolidated subsidiaries primarily result from loans granted of €624 million (2022:
€145 million), with €33 million (2022: €35 million) relating to Dastera Grundstücksverwaltungs-
gesellschaft mbH & Co. Vermietungs KG, as well as trade receivables of €34 million (2022: €20 million).
Receivables from associates mainly result from receivables from non-current finance leases of €24 million (2022:
€25 million) as well as from loans granted of €105 million (2022: €14 million).
The tables above do not contain the dividend payments received from joint ventures and associates of €2 million
(2022: €1 million). Nor do the tables contain the dividends of €690 million paid to Porsche Holding
Stuttgart GmbH and the dividends of €114 million paid to Porsche SE.
The maximum credit risk for financial guarantees issued to joint ventures amounted to €62 million (2022:
€66 million).
The disclosure requirements under IAS 24 also extend to persons who have the power to exercise significant
influence over the entity, i.e., who have the power to participate in the financial and operating policies of the entity,
but do not control it, including close family members. In the reporting period, this related to the members of the
Executive Board of Porsche AG and its Supervisory Board as well as their close family members. Supplies and
services rendered and receivables from members of management bodies and the Supervisory Board only included
services from the vehicle, parts and design business, and other services. The employee representatives appointed
to the Supervisory Board continue to be entitled to a normal salary in accordance with their employment contracts.
The benefits and compensation paid to the members of the Executive Board and of the Supervisory Board for their
work as members of those bodies are presented below and are not included in the above list of supplies and
services rendered or received or the list of the receivables and liabilities.
Consolidated Financial Statements Notes to the consolidated financial statements
389
In 2023, there were other obligations not recognized in the statement of financial position to non-consolidated
subsidiaries amounting to €409 million (2022: €27 million) and to joint ventures amounting to €227 million
(2022: €124 million).
There were no material trade relationships with the Porsche and Piëch families and their affiliated companies in the
reporting period or the prior period.
All transactions with related parties are regularly carried out at arm's length conditions.
7,021
115
97
Pension plans
0
0
Members of the Executive Board and the
Supervisory Board Porsche AG
0
0
Other related parties
Total
1
The prior-year figures have been adjusted.
7,305
8,377
2,351
↑↓ ↑ ||
390
In addition, the following benefits and compensation granted to the members of the Executive Board and of the
Supervisory Board of Porsche AG have been recognized as expenses for their work as members of those bodies at
Porsche AG:
€ million
1. Details of issuer
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart, Germany
2. Reason for notification
Other reason:
Completion of the share purchase agreement
3. Details of party subject to the notification obligation
Name:
Dr. Hans Michel Piëch
City and country of registered office:
4. Names of shareholder(s) holding directly 3% or more voting rights, if different from 3.
Porsche Holding Stuttgart GmbH
Porsche Automobil Holding SE
5. Date on which threshold was crossed or reached:
December 30, 2022
214,167
214,167
Resulting situation
Previous notification
% of voting rights
attached to shares
(total of 7.a.)
100.00%
100.00%
47.1 Publication pursuant to section 40 (1) WpHG from January 2, 2023
of which granted during the reporting period
47. NOTIFICATIONS OF CHANGES IN THE VOTING RIGHTS IN PORSCHE AG PURSUANT TO
THE GERMAN SECURITIES TRADING ACT (WPHG)
45. TOTAL FEES OF THE GROUP AUDITOR
Short-term employee benefits
Benefits based on performance shares
Post-employment benefits
2023
2022
16
15
4
12
3
2
23
29
There were balances outstanding at the end of the period including obligations for short-term and long-term
benefits including post-employment benefits as well as for the fair values of the performance shares granted to the
Executive Board members under the performance share plans based on the Volkswagen and Porsche preferred
shares and virtual shares in connection with the IPO bonus of €62 million (2022: €56 million) + 43. REMUNERATION
BASED ON PERFORMANCE SHARES (SHARE-BASED PAYMENT). The post-employment benefits concern the additions to
pension provisions for service cost relating to active Executive Board members including the pension plans funded
by Executive Board members. As of this fiscal year, the chairman of the Executive Board of Porsche AG, who is also
chairman of the board of management of Volkswagen AG, receives half of his remuneration from Porsche AG and
half from Volkswagen AG.
In the fiscal year, the Porsche AG Group made capital contributions at related parties of €217 million (2022:
€372 million).
Write-downs of €0 million (2022: €7 million) were recognized in respect of the outstanding receivables from
related parties.
Porsche AG is required by German commercial law to disclose the total fees charged by the group auditor, Ernst &
Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart (since February 1, 2024: "EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft", Stuttgart), for the fiscal year.
6. Total positions
%
100.00%
Porsche Holding Stuttgart GmbH
AKTIENGESELLSCHAFT
%
%
%
VOLKSWAGEN
25.01%
%
25.01%
Porsche Automobil Holding SE
%
%
%
Ahorner GmbH
%
%
%
74.99%
Ahorner Holding GmbH
%
9. In case of proxy voting according to section 34 (3) WPHG
Equity
Exchange rate
in capital in %
Porsche AG's interest
Name and domicile of company
50. LIST OF SHAREHOLDINGS
398
↑↓ ↑ ||
397
Consolidated Financial Statements Notes to the consolidated financial statements
%
%
%
Total of both
% of voting rights through instruments
% of voting rights attached to shares
Date of Annual General Meeting:
74.99%
%
%
or more)
instrument
Type of
b.2. Instruments according to section 38 (1) no. 2 WPHG
%
Voting rights
Voting rights
absolute
Cash or physical
settlement
Exercise or
conversion period
Total
0.00%
0.00%
%
Voting rights
absolute
Exercise or
conversion period
Voting rights
100.00%
Indirect (section
34 WPHG)
Conditional
transfer claim
Expiration or
maturity date
48. GERMAN CORPORATE GOVERNANCE CODE
(if at least held 5%
Total of both
entity:
(if at least held 5% or
more]
% of voting rights through
instruments
% of voting rights (if at
least held 3% or more)
Mag. Josef Ahorner
Name
(1 € =)
Full chain of controlled undertakings starting with the ultimate controlling natural person or legal
%
Total
The individual remuneration of members of the Executive Board and the Supervisory Board is explained in the
remuneration report. This also contains an extensive assessment of the individual remuneration components.
The total remuneration granted to the members of the Supervisory Board amounts to €3 million (2022: €2 million).
PENSION CLAIMS AND PAYMENTS TO FORMER MEMBERS OF THE EXECUTIVE BOARD
The former members of the Executive Board and their surviving dependents were granted €2 million (2022:
€2 million). For this group of people, there were provisions for pensions of €46 million (2022: €47 million).
Under the performance share plan, the active members of the Executive Board were not granted any new
performance shares for the fiscal year 2023 (2022: 30,603, with a value as of the date of granting of €5 million).
For fiscal year 2023, a total of 85,266 performance shares were allocated based on the Porsche preferred share
(2022:0), the value of which came to €12 million (2022: €- million) as of the date of allocation. As part of the IPO,
the Supervisory Board of Porsche AG also granted an IPO bonus for the members of the Executive Board in the
form of a virtual share plan →43. REMUNERATION BASED ON PERFORMANCE SHARES (SHARE-BASED PAYMENT). In this context,
the members of the Executive Board were not granted any new virtual shares (2022:85,440, the value of which
amounted to €7 million at the time of granting them).
The total remuneration granted to the members of the Executive Board amounts to €25 million (2022:
€24 million).
49. REMUNERATION OF THE EXECUTIVE BOARD AND SUPERVISORY BOARD
In December 2023, the Executive Board and the Supervisory Board of Porsche AG issued a declaration of
conformity with the German Corporate Governance Code pursuant to section 161 AktG and made it permanently
available to the shareholders of Porsche AG at https://investorrelations.porsche.com/en/corporate-governance/.
8. Information in relation to the party subject to the notification obligation
maturity date
in thousands,
in thousands,
235,124
700
18,120
100.00
100.00
EUR
Porsche Deutschland GmbH, Bietigheim-Bissingen
100.00
100.00
EUR
Porsche Consulting GmbH, Bietigheim-Bissingen
86.35
86.35
EUR
RUB
000 Porsche Russland, Moskau
MHP Management- und IT-Beratung GmbH,
Ludwigsburg
RUB
000 Porsche Financial Services Russland, Moskau
69,201
RUB
2022
USD
1.4681
CAD
PCREST II Holdings Ltd., Vancouver / BC
2022
99.00 1.00 100.00
100.00 100.00
2022
1,386
13,635
2022
10
2022
10
18,570
17,210
37,644
56,017
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
99.9661
99.9661
99.9661
1.1077
PCars LLC, Atlanta / GA
000 Porsche Center Moscow, Moskau
EUR
Nardò Technical Center S.r.l., Santa Chiara di Nardò
Indirect
Direct
Exchange rate
(1 € =)
Currency Dec. 31, 2023
local currency Footnote
in thousands,
Profit/loss
Equity
in capital in %
Porsche AG's interest
2. International
Name and domicile of company
local currency Footnote Year
local currency
Total
Indirect
Direct
Currency Dec. 31, 2023
Total
Porsche Automobil Holding SE
Year
Carrera Finance S.A., Luxemburg
1.1077
1.1077
USD
ExB LLC, Atlanta / GA
USD
ExB II LLC, Atlanta / GA
10 2022
10
EUR
Profit/loss
Carrera Italia SPV S.r.I., Conegliano
A. Consolidated companies
II. SUBSIDIARIES
Dr. Ing. h.c. F. Porsche AG, Stuttgart
I. PARENT COMPANY
2022
31
10
EUR
1. Germany
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument Expiration or
455,500,000
100.00%
(if at least held
% of voting rights through
instruments
% of voting rights (if at
least held 3% or more)
Name
Total of both
Full chain of controlled undertakings starting with the ultimate controlling natural person or legal entity:
8. Information in relation to the party subject to the notification obligation
Voting rights
%
Total
Voting rights
absolute
Cash or
physical
settlement
Exercise or
conversion period
%
%
Voting rights
%
Voting rights
absolute
Conditional transfer
claim
(if at least held 5% or more)
Expiration or
maturity date
5% or more)
%
%
%
VOLKSWAGEN
25.01%
%
25.01%
Porsche Automobil Holding SE
%
%
%
Porsche Gesellschaft mit
beschränkter Haftung
%
%
%
Porsche Gesellschaft m.b.H.
%
%
Porsche Piëch Holding GmbH
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Total
100.00%
47.3 Publication pursuant to section 40 (1) WpHG from January 2, 2023
Total of both
%
%
% of voting rights through instruments
%
% of voting rights attached to shares
Date of Annual General Meeting:
9. In case of proxy voting according to section 34 (3) WpHG
74.99%
%
74.99%
Porsche Holding Stuttgart GmbH
AKTIENGESELLSCHAFT
%
%
%
VOLKSWAGEN
1. Details of issuer
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart, Germany
2. Reason for notification
Other reason:
100.00%
(total of 7.a.)
attached to shares
% of voting rights
Previous notification
Resulting situation
6. Total positions
December 30, 2022
%
5. Date on which threshold was crossed or reached:
Porsche Holding Stuttgart GmbH
4. Names of shareholder(s) holding directly 3% or more voting rights, if different from 3.
Salzburg, Austria
City and country of registered
office:
Porsche Piëch Holding GmbH
Name:
3. Details of party subject to the notification obligation
Completion of the share purchase agreement
Porsche Automobil Holding SE
AKTIENGESELLSCHAFT
Porsche Holding Stuttgart GmbH
74.99%
voting rights
pursuant to
section 41
Total number of
Total of both (total
notified details of the
resulting situation a. +
b.)
% of voting rights
through instruments
(total notified details
of the resulting
situation b.1.+b.2.)
attached to shares
(total notified details
of the resulting
situation a.)
% of voting rights
6. Total positions
396
395
Consolidated Financial Statements Notes to the consolidated financial statements
||| ơ V12
City and country of registered office:
0%
100.00%
455,500,000
Total
455,500,000
0
WPHG
Resulting situation
100.00%
%
Total
0.00%
455,500,000
WpHG)
Direct (section 33
Indirect (section 34
WpHG)
Direct (section 33
WpHG)
0
DE000PAG9113
DEO0OPAG9113
%
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
7. Notified details of the resulting situation
notification
455,500,000
100.00%
100.00%
7.50%
100.00%
Previous
absolute
100.00 100.00
Indirect
Indirect (section 34
WpHG)
% (7.a. +7.b.)
through instruments
Total of both
% of voting rights
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart
1. Details of issuer
47.4 Publication pursuant to section 40 (1) WpHG from January 2, 2023
Total number of
%
Total of both
% of voting rights through instruments
%
%
% of voting rights attached to shares
Date of Annual General Meeting:
9. In case of proxy voting according to section 34 (3) WpHG
74.99%
%
(total of 7.b.1. +7.b.2.)
voting rights of
issuer
0.00%
7.50%
Direct (section 33
WpHG]
%
absolute
5. Date on which threshold was crossed or reached:
December 30, 2022
Porsche Automobil Holding SE
Porsche Holding Stuttgart GmbH
4. Names of shareholder(s)
Mag. Josef Ahorner
Direct (section 33
WpHG)
3. Details of party subject to the notification obligation
Name:
Other reason:
2. Reason for notification
WpHG)
100.00%
(section 34
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
7. Notified details of the resulting situation
455,500,000
100.00%
100.00%
Completion of the share purchase agreement
2022
PCREST Ltd., Mississauga / ON
CAD
Porsche Cars Great Britain Ltd., Reading
1.4681
CAD
Porsche Cars Canada Ltd., Toronto / ON
2022
2,198
100.00
100.00
EUR
1.6292 100.00
AUD
Porsche Cars Australia Pty. Ltd., Collingwood
2022
58,311
100.00
100.00
EUR
GBP
Porsche Nordamerika Holding GmbH, Ludwigsburg
Porsche Sales & Marketplace GmbH, Stuttgart
Porsche Verwaltungsgesellschaft mit beschränkter
Haftung, Ludwigsburg
0.8691
100.00
1
2022
-279
2022
-4
37
68,193
2,556
1,501,311
394,594
100.00
100.00
100.00 100.00
19.40 100.00
100.00
80.60
100.00
EUR
UI-SP25-Fonds, Frankfurt am Main
EUR
UI-356-Fonds, Frankfurt am Main
EUR
Porsche Zentrum Hoppegarten GmbH, Stuttgart
100.00
EUR
Porsche Werkzeugbau GmbH, Schwarzenberg
EUR
1.4681
CAD
1.4681
Porsche Business Services, Inc., Atlanta / GA
5.3750 100.00
BRL
Porsche Brasil Importadora de Veículos Ltda.,
São Paulo
2022
2,500
100.00 100.00
EUR
Porsche Niederlassung Berlin GmbH, Berlin
2022
1,000
100.00
100.00
EUR
Porsche Logistik GmbH, Stuttgart
2022
9
USD
1.1077
Porsche Niederlassung Berlin-Potsdam GmbH,
Kleinmachnow
CAD
Porsche Canadian Funding L.P., Mississauga / ON
Porsche Canadian Investment ULC, Halifax / NS
2022
2,500
100.00 100.00
EUR
2022
2,000
2022
100.00 100.00
Porsche Niederlassung Hamburg GmbH, Hamburg
Porsche Niederlassung Stuttgart GmbH, Stuttgart
1.4681
CAD
Porsche Canadian Funding II L.P., Mississauga / ON
2022
1,700
100.00 100.00
EUR
EUR
Porsche Cars North America, Inc., Atlanta / GA
Porsche Central and Eastern Europe s.r.o., Prag
Porsche Centre Beijing Central Ltd., Peking
USD
1.1077
↑↓ ↑O ||
394
25.01%
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Exercise or
conversion period
Expiration or
maturity date
Familie Porsche
%
%
%
Beteiligung GmbH
19,067
100.00 100.00
1.4681
CAD
2022
49,539
51,039
393
Consolidated Financial Statements Notes to the consolidated financial statements
Porsche GmbH
%
7.50%
100.00%
100.00%
455,500,000
Stephanie Porsche-Schröder,
Ferdinand Rudolf Wolfgang
Porsche, Felix Alexander Porsche
Familie WP Holding GmbH
%
%
%
100.00 100.00
%
%
Ferdinand Porsche
%
%
%
Familien-Holding GmbH
Ferdinand Alexander
%
%
%
2022
7.8700
Porsche Centre Beijing Goldenport Ltd., Peking
Porsche Centre North Toronto Ltd., Toronto / ON
Porsche Centre Shanghai Pudong Ltd., Shanghai
Porsche Centre Shanghai Waigaoqiao Ltd.,
Shanghai
2022
22,025
2022
18,200
2022
-28
677
175,719
214,677
2022
16,852
2022
8,248
10
2022
2022
154,265
-1,232
164,265
-14,206
114,882
101,866
100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00
100.00 100.00
100.00 100.00
100.00 100.00
165,210
26,307
2022
CZK
2022
4,10
2022
10
-69,850
-17,906
2022
81,607
65,288
CNY
100.00 100.00
CNY
2022
11,627
2022
549,641
2,441,457
153,473
100.00
24.7180 100.00
7.8700
25.01%
10
2022
100.00 100.00
1.1077
USD
PGEAR LLC, Atlanta / GA
Porsche Engineering Services GmbH, Bietigheim-
Bissingen
2022
10
7,373
33,395
100.00 100.00
1.1077
USD
PFORCE LLC, Atlanta / GA
2022
4,000
100.00
100.00
29,479
EUR
7,841
2022
100.00
100.00
EUR
Porsche Erste Beteiligungsgesellschaft mbH,
Stuttgart
2022
10
25,265
98,593
100.00 100.00
1.1077
USD
PILOT 2017-A LLC, Atlanta / GA
2022
1,601
100.00
100.00
EUR
10
Porsche Engineering Group GmbH, Weissach
2022
10
EUR
Porsche Dienstleistungs GmbH, Stuttgart
2022
5
2022
10
2022
10
2022
-248,404
22,746
2022
50,518
2022
122,033
1,805,297
280,862
7,192,065
51,835
990
3
100.00 100.00
1.4681
100.00
100.00
43
2022
9,596
32,985
100.00 100.00
1.1077
USD
PDRIVE LLC, Atlanta / GA
2022
20,025
104,425
100.00
EUR
Porsche Digital GmbH, Ludwigsburg
2022
506
100.00 100.00
1.1077
USD
PCTX LLC, Atlanta / GA
100.00
2022
PILOT 2017-B LLC, Atlanta / GA
USD
4,814
59,971
100.00
100.00
100.00
EUR
Porsche Leipzig GmbH, Leipzig
100.00
EUR
Porsche Immobilien GmbH & Co. KG, Stuttgart
CNY
Shanghai
2022
5
112
100.00 100.00
EUR
Bissingen
2022
Porsche Asia Pacific Pte. Ltd., Singapur
SGD
7.8700
1.4612 100.00
154,752
14,823
625,831
79,807
4,000
671
100.00 100.00
100.00
100.00 100.00
100.00 100.00
1.1077
USD
Porsche Aviation Products, Inc., Atlanta / GA
2022
8,586
Porsche (Shanghai) Commercial Services Co., Ltd.,
-11,551
100.00
EUR
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg
1.1077
USD
Porsche Auto Funding LLC, Atlanta / GA
2022
2,500
100.00
2022
Verwaltungsgesellschaft mbH, Bietigheim-
2022
100.00
EUR
Bietigheim-Bissingen
Porsche Financial Services GmbH,
1.1077
USD
PJOLT-1 LLC, Atlanta / GA
2022
19,955
169,972
100.00 100.00
EUR
1.1077
USD
PILOT 2019-A LLC, Atlanta / GA
Porsche Financial Services GmbH & Co. KG,
Bietigheim-Bissingen
1.1077
100.00
26,608
2022
Porsamadrid S.L., Madrid
3,258
3,027,981
7,964
3,153,434
2023
4,6,10
2022
10
22,036
61,015
2022
2022
-324
9,994
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
7.8700
CNY
Porsche (China) Motors Ltd., Shanghai
Porsche Financial Services
EUR
10
in thousands,
local currency
-150
-8,315
V. OTHER EQUITY INVESTMENTS
1. Germany
2022
-475
-441
2023
4,6
2023
2022
2022
-19,862
-85,481
587,807
41,342
3.36 3.36
11.65 11.65
33.00 33.00
33.00 33.00
20.00 20.00
EUR
Stellar Telecommunications S.A.S., Meudon
1.1077
1.1077
1.1077
1.1077
USD
2. International
Sensigo, Inc., Wilmington / DE
1. Germany
1KOMMA5° GmbH, Hamburg
EUR
Axel Springer Porsche Management GmbH, Berlin
50.00 50.00
EUR
Axel Springer Porsche GmbH & Co. KG, Berlin
1. Germany
2022
-873
41
5.00 5.00
EUR
aware THE PLATFORM GmbH, in Liquidation, Berlin
2022
-7,001
80,136
6.08 6.08
EUR
B. Companies accounted for at cost
A. Equity-accounted companies
USD
Pull Data Inc., Santa Monica / CA
EUR
The Business Romantic Society Verwaltungs
GmbH, Berlin
2022
69
31,074
100.00 100.00
EUR
2022
4
-92
2022
-8,308
2020
618
2,974
693
40.00 40.00
EUR
P2 eBike GmbH, Stuttgart
5.14 5.14
-863
2022
2022
III. JOINT VENTURES
USD
HIF Global LLC, Houston / TX
USD
Group 14 Technologies, Inc., Wilmington / DE
2022
1,709
13,436
50.00 50.00
100.00 100.00
CNY
2. International
2022
1,831
16,724
100.00 100.00
EUR
Porsche Werkzeugbau s.r.o., Dubnica nad Váhom
Shanghai Advanced Automobile Technical Centre
Co., Ltd., Shanghai
7.8700
2022
24,484
31
2022
in capital in %
Porsche AG's interest
in capital in %
Porsche AG's interest
400
3.13 3.13
14.41 14.41
EUR
Heartfelt APX GmbH & Co. KG, Berlin
2022
11, 12
20.00
20.00
EUR
Biomechanics GbR, Gaimersheim
PDB-Partnership for Dummy Technology and
EUR
Headline Europe VII GmbH & Co. KG, Berlin
Exchange rate
2022
Equity
Name and domicile of company
Profit/loss
Equity
in thousands,
local currency
Total
Indirect
Direct
Exchange rate
(1 € =)
Currency Dec. 31, 2023
Name and domicile of company
Year
local currency Footnote
local currency
Total
Direct Indirect
in thousands,
in thousands,
(1 € =)
Currency Dec. 31, 2023
Porsche Design of America, Inc., Ontario / CA
Porsche Distribution S.A.S., Vélizy-Villacoublay
Porsche Engineering Services s.r.o., Prag
Porsche Enterprises, Inc., Atlanta / GA
Profit/loss
761
2,229
50.00 50.00
EUR
FlexFactory GmbH, Stuttgart
2022
-1,102
-2
5.00
5.00
EUR
Denizen GmbH, Berlin
2022
19
2022
-396
33
5.55 5.55
EUR
Daato Technologies GmbH, Berlin
50.00 50.00
28,110
-1,999
2022
EUR
Ludwigsburg
2022
10
-4,177
95,817
3.33
3.33
-4,711
EUR
Intelligent Energy System Services GmbH,
2022
10
-6,255
73,600
7.91 7.91
EUR
e.ventures europe V GmbH & Co. KG, Hamburg
e.ventures europe VI GmbH & Co. KG, Hamburg
-305
16.64 16.64
EUR
4,614
22,888
797
2022
8,713
2022
Consolidated Financial Statements Notes to the consolidated financial statements
401
402
Porsche AG's interest
in capital in %
Porsche AG's interest
in capital in %
Exchange rate
Equity
Profit/loss
Name and domicile of company
Porsche Digital Croatia d.o.o., Zagreb
Porsche Digital España, S.L., Barcelona
Porsche Digital Israel Ltd., Tel Aviv
2022
(1 € =)
Currency Dec. 31, 2023
48
7.8700
1.1077
Porsche Singapore Pte. Ltd., Singapur
Porsche Taiwan Motors Ltd., Taipei
SGD
1.4612
TWD
33.9211
75.00 75.00
100.00 100.00
5,693
1,025,116
-2,307
2022
Porsche Design Timepieces AG, Solothurn
CHF
0.9264
843,451
2022
Porsche Digital China Ltd., Shanghai
CNY
100.00 100.00
100.00 100.00
100.00 100.00
in thousands,
in thousands,
Direct Indirect
2022
114
2022
ILS
3.9951
100.00 100.00
39
39
2022
Bugatti International Holding S.à r.I., Luxemburg
Material Science Center Qatar QSTP-LLC, in
Liquidation, Doha
EUR
49.00
49.00
92,999
-13
2022
QAR
7,140
9,404
618
2. International
50.00 50.00
100.00 100.00
Total
local currency
local currency Footnote
Year
Name and domicile of company
Exchange rate
(1 € =)
Currency Dec. 31, 2023
Direct
USD
Indirect
in thousands,
local currency
Equity
Profit/loss
in thousands,
local currency Footnote Year
HRK
7.5345
EUR
Total
Hills / CA
2022
122
2022
3,389
2
2022
-6,074
-404
2022
Porsche Retail Group Ltd., Reading
GBP
0.8691
100.00 100.00
72,369
18,117
2022
Porsche Design Italia S.r.I., Padua
EUR
100.00 100.00
534
387
100.00 100.00
100.00 100.00
100.00 100.00
0.8691
New Horizon GmbH, Berlin
100.00 100.00
15,147
3,795
2022
Porsche Design Asia Hong Kong Ltd., Hongkong
HKD
8.6529
276
Porsche Retail Group Australia Pty. Ltd.,
AUD
1.6292
100.00 100.00
61,684
11,987
2022
Porsche Design Great Britain Ltd., Reading
GBP
Collingwood
in thousands,
-3
Porsche Retail Italia S.r.l., Mailand
100.00 100.00
803
-106
5
2022
Porsche Schweiz AG, Rotkreuz
CHF
0.9264
100.00 100.00
41,771
5,991
2022
Porsche Design Studio North America, Inc., Beverly
Porsche Services Ibérica, S.L., Madrid
EUR
100.00 100.00
1,787
7.8700
CNY
Shanghai
Porsche Design Sales (Shanghai) Co., Ltd.,
EUR
100.00 100.00
12,884
3,925
2022
Porsche Design Netherlands B.V., Roermond
EUR
100.00 100.00
2022
707
2022
Porsche Sales & Marketplace Inc., Atlanta / GA
USD
1.1077
100.00 100.00
-1,660
2,164
2022
231
4.0378 25.00
local currency Footnote Year
1.1077
HRK
Cetitec d.o.o., Cakovec
2022
28,331
134,824
229,103
0.8691
5
GBP
AFN Ltd., Reading
2022
10
37,012
109,665
100.00 100.00
100.00
100.00 100.00
EUR
100.00
EUR
7.5345
Porsche International Financing DAC, Dublin
Porsche International Reinsurance DAC, Dublin
18,788
Cetitec USA Inc., Dublin / OH
Porsche Leasing Ltd., Atlanta / GA
1.1077
USD
Porsche Latin America, Inc., Miami/FL
JPY 156.7900 100.00
KRW 1.440.7150 100.00
Porsche Korea Ltd., Seoul
Porsche Japan K.K., Tokio
EUR
Porsche Italia S.p.A., Padua
100.00
EUR
Luxemburg
EUR
INFINUM JV Holding d.o.o., Karlovac
Porsche Investments Management S.A.,
1.1077
USD
2022
1.1077
USD
Porsche Innovative Lease Owner Trust 2016-A,
Atlanta / GA
-10,667
17,524
2023
100.00
100.00
100.00
EUR
P3X GmbH & Co. KG, Gilching
2022
8
37,246
9,741
-138,252
100.00
EUR
Over Take GmbH, Köln
2022
6,168
18,669
208,347
139,364
158,092
13,965,531
114,976
100.00
99.99
2022
2022
P3X Management GmbH, Gilching
EUR
2. International
2022
10,209
2022
2022
-21,006
-52
2022
4
USD
2
100.00 100.00
60.00 60.00
100.00 100.00
EUR
serva GmbH, in Liquidation, Stuttgart
2022
3,812,724
EUR
Porsche eBike Performance GmbH, Ottobrunn
2022
27
69,532
1,187
99.99
1.1077
392,652
150,661
6,727,246
29,921,771
4,978
CAD
Porsche Consulting Canada Ltd., Toronto / ON
2022
-8
4,852
100.00 100.00
100.00
1.1077 100.00
USD
Porsche Middle East and Africa FZE, Dubai
1.1077
USD
Porsche Logistics Services LLC, Atlanta / GA
2022
730
-121
100.00 100.00
0.8691
1.4681
GBP
100.00 100.00
819
1.1077
USD
Santa Ana / CA
EUR
Porsche Consulting S.A.S., Paris
Porsche Motorsport North America, Inc.,
2022
3,274
12,322
100.00 100.00
5.3750
BRL
Porsche Consulting Ltda., São Paulo
2022
10,075
79,560
2022
2,407
MHP Consulting UK Ltd., Birmingham
2022
10
MHP (Shanghai) Management Consultancy Co.,
Ltd., Shanghai
2022
5,227,246
2022
16,305
2023
2023
2022
2022
3,357
-49
3,377
200
2022
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
EUR
Levi Rally Center Oy, Rovaniemi
2022
-12,060
CNY
7.8700
25,678,803
2022
2022
7,220
29,649
2022
1,709
1,786
2022
3,825
100.00
100.00 100.00
100.00
100.00
100.00 100.00
100.00 100.00
31,210
4.9759
RON
MHP Consulting Romania S.R.L., Cluj-Napoca
2022
537
1.1077
USD
MHP Americas, Inc., Atlanta / GA
100.00 100.00
100.00 100.00
100.00 100.00
EUR
Porsche Ibérica S.A., Madrid
8.6529 100.00
1.1077
7.8700
CNY
Porsche Financial Leasing Ltd., Shanghai
USD
2022
-75
23,715
100.00 100.00
7.8700
CNY
Shanghai Jie Gang Enterprise Management Co.,
Ltd., Shanghai
Porsche Financial Auto Securitization Trust 2023-
2, Atlanta / GA
2023
100.00 100.00
1.1077
USD
4,6,10
100.00 100.00
100.00 100.00
2022
4,6,10
196,499
2022
-28,114
15,704
100.00 100.00
EUR
Cellforce Group GmbH, Tübingen
1. Germany
2022
873
4,594
100.00 100.00
1.6292
AUD
Porsche Financial Services Australia Pty. Ltd.,
Collingwood
B. Unconsolidated companies
2022
116
2023
10
8,668
2022
82,855
0.9264
0.9264 100.00
CHF
PPF Holding AG, Zug
2022
5,371
44,641
380,454
140,691
100.00 100.00
100.00 100.00
1.1077
USD
CZK 24.7180
CHF
Porsche Zentrum Zug, Risch AG, Rotkreuz
2022
187
2,673
100.00 100.00
100.00 100.00
2022
PREV LLC, Atlanta / GA
USD
1.1077
10
2022
63,188
68,759
10
2022
2022
-36
4,729
12,468
6,663
163,674
141,760
35,167
Porsche Financial Services Canada G.P.,
100.00 100.00
100.00
100.00 100.00
100.00 100.00
100.00 100.00
USD
PVOLT LLC, Atlanta / GA
Porsche Financial Auto Securitization Trust 2023-
1, Atlanta GA
1.1077
USD
PSHIFT LLC, Atlanta / GA
2022
-11,105
1.1077
Mississauga / ON
CAD
1.4681
2022
898,676
2022
125
100.00 100.00
EUR
Initium GmbH, Berlin
2022
11,176
103,091
8,021,442
76,506,613
2022
10
153
-212
94.00
94.00
EUR
Manthey Racing GmbH, Meuspath
EUR
51.00
51.00
HKD
Porsche Hong Kong Ltd., Hongkong
100.00 100.00
100.00 100.00
1.1077
USD
Porsche Funding L.P., Atlanta / GA
EUR
2022
& Co. Vermietungs KG, Mainz
425
100.00 100.00
EUR
Manthey Servicezentrum GmbH, Meuspath
2022
1,417,573
2022
3,217
10,074
868
USD
EUR
2022
104,785
100.00 100.00
EUR
Asnières-sur-Seine
Dastera Grundstücksverwaltungsgesellschaft mbH
Porsche Financial Services France S.A.S.,
2022
3,012
4,137
100.00
100.00
EUR
Cetitec GmbH, Pforzheim
2022
8
8,049
31,924
100.00 100.00
21,637
3,383
2022
& Co. Vermietungs KG, Mainz
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
1.1077
USD
0.9264
CHF
JPY 156.7900
KRW 1.440.7150
EUR
Porsche Financial Services Italia S.p.A., Padua
Porsche Financial Services Japan K.K., Tokio
Porsche Financial Services Korea Ltd., Seoul
Porsche Financial Services Schweiz AG, Rotkreuz
Porsche Financial Services, Inc., Atlanta / GA
Porsche France S.A.S., Asnières-sur-Seine
12,902
0.8691
Datura Grundstücksverwaltungsgesellschaft mbH
Porsche Financial Services Great Britain Ltd.,
Reading
10 2022
-138
-447
94.00
94.00
EUR
GBP
25.00
1,495
-5,846
Hangzhou Wanxiang Culture Technology Co., Ltd.,
Hangzhou
2021
10
-2,379
247,785
9.09 9.09
1.1077
USD
Grove Ventures L.P., Grand Cayman
2022
1.63
1.63
1.1077
USD
Grove Ventures III L.P., Grand Cayman
2021
10
CNY
7.8700
Intamsys Technology Ltd., Dongguan
CNY
-4,978
-20,791
102,141
24,159
3.31 3.31
4.78 4.78
4.10 4.10
11.33 11.33
0.73
6.04
6.04
1.1077
USD
Playbook Technologies Inc., Ridgewood / NJ
0.73
-2,497
1.1077
Nozomi Networks, Inc., San Francisco / CA
1.1077
USD
Magma Growth Equity I L.P., Grand Cayman
0.8691
GBP
LAKA Ltd., London
7.8700
USD
67,304
2.50
2.50
10
2022
2023
5.52 5.52
4.17 4.17
3.99 3.99
4.64 4.64
1.1077
USD
Eve One L.P., Grand Cayman
1.1077
593,081
USD
1.1077
USD
DSP Concepts, Inc., Dover / DE
1.1077
USD
Dream Machine Innovations Inc., Wilmington / DE
2022
0.79 0.79
e.ventures US V, L.P., San Francisco / CA
2022
349,713
10
1.1077
USD
Grove Ventures II L.P., Grand Cayman
2022
4.89
4.89
3.9951
ILS
2021
Griiip Automotive Engineering Ltd., Petach Tikva
10
22,895
57,235
9.64 9.64
1.1077
USD
Fontinalis Capital Partners III, L.P., Detroit / MI
2022
2021
1.1077
2022
49,683
Xuanlin (Shanghai) Information Technology Co.,
Ltd., Shanghai
2022
2022
2022
-4,358
24,997
2022
2022
-89,854
2022
-1,407
2022
-8,536
-18,917
-977
-128,694
2022
2023
2.84 2.84
9.00 9.00
11.14 11.14
7.15 7.15
3.41 3.41
2.08 2.08
3.67 3.67
0.03 0.03
7.90 7.90
CNY
7.8700
6.00
6.00
431
GRI CONTENT INDEX
425
ABOUT THIS REPORT
422
INDEPENDENT AUDITOR'S REPORT
419
INDEPENDENT AUDITOR'S REPORT
1.1077
417
408 RESPONSIBILITY STATEMENT
FURTHER INFORMATION
918 Spyder
20
14
406
405
Consolidated Financial Statements Notes to the consolidated financial statements
2022
409 INDEPENDENT AUDITOR'S REPORT
USD
Wayray AG, Zürich
1.1077
Shanghai Powershare Tech Ltd., Shanghai
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
The Executive Board
Stuttgart, February 19, 2024
2022
4.00 4.00
1.1077
USD
RunBuggy OMI, Inc., Newark / DE
CNY
2022
1.1077
USD
RSE Markets, Inc., Dover / DE
2022
2022
2021
10
-627
4.61 4.61
2022
7.8700
PLN
USD
Via Transportation, Inc., New York / NY
1.1077
USD
Valence Security Inc., Wilmington / DE
1.1077
USD
Urgent.ly Inc., Vienna / VA
Stretch Me Sp. z o.o., Krakau
1.1077
TriEye Ltd., Tel Aviv
0.9264
CHF
The Embassies of Good Living AG, Zürich
1.1077
USD
Tactile Mobility Ltd., Haifa
4.3409
USD
TCFD INDEX
USD
2022
local currency Footnote
local currency
Total
Indirect
Direct
Currency Dec. 31, 2023
Name and domicile of company
Exchange rate
(1 € =)
in thousands,
in thousands,
(1 € =)
Profit/loss
Equity
Exchange rate
in capital in %
Porsche AG's interest
in capital in %
Year
Name and domicile of company
Currency Dec. 31, 2023
Direct
EUR
Sharpist GmbH, Berlin
2021
-386
-370
8,247
8.35
11.57
8.35
11.57
Porsche AG's interest
EUR
Retorio GmbH, München
RYDES GmbH, Berlin
local currency Footnote Year
in thousands,
Profit/loss
Equity
in thousands,
local currency
Total
Indirect
EUR
404
403
Consolidated Financial Statements Notes to the consolidated financial statements
4
37
50.00
50.00
EUR
Smart Press Shop Verwaltungs-GmbH, Stuttgart
10.00
EUR
2022
und Wirtschaft GmbH, Stuttgart
2022
387
23,195
50.00
50.00
EUR
Smart Press Shop GmbH & Co. KG, Halle
2023
HWW-Höchstleistungsrechner für Wissenschaft
3.70 3.70
Impact Labs GmbH, Hamburg
My Inner Health Club GmbH, in Liquidation, Berlin
2022
4
-567
315
2022
2022
2022
-173
-1,325
EUR
817
10
27
1,400
10.00
7.75 7.75
5.00 5.00
7.35 7.35
5.44 5.44
EUR
onGRID Sports Technology GmbH, Berlin
EUR
NitroBox GmbH, Hamburg
EUR
2022
Cresta Intelligence Inc., Wilmington / DE
2022
USD
USD
BQ Holding Ltd., Weymouth
7.8700
CNY
Peking
Beijing Achievers Management Consulting Co., Ltd.,
The parent company is shareholder with unlimited liability
11 Joint operation in accordance with IFRS 11
10 Structured entity in accordance with IFRS 10 and IFRS 12
9 Circumstance in the meaning of section 1 UmwG
Figures in accordance with IFRSS
6 Newly established/split off-company
12
2022
-6,553
15,779
2023
2022
EUR
14.90 14.90
0.94 0.94
2,368
-5,193
4.90 4.90
1.1077
USD
Connect IQ Labs, Inc., Redwood City / CA
2022
10.08 10.08
1.1077
USD
-19,929
CarPutty Inc., Wilmington / DE
-3,025
5,598
4.60 4.60
0.8691
GBP
Bumper International Ltd., London
2022
2022
2022
-1,727
2023
7 Newly acquired company
10,700
4.97
4.97
EUR
WORKERBASE GmbH, München
3 Different fiscal year
2 In liquidation
2023
-326
5.69
EUR
Triple Al GmbH, Berlin
2020
-790
-784
2022
2.34 2.34
5.00 5.00
1.1077
1.1077
5.69
Zededa, Inc., San Jose / CA
Zync Inc., San Francisco / CA
1Profit and loss transfer agreement
2022
5 Currently not trading
2022
3.59 3.59
1.77 1.77
4.74 4.74
5.35 5.35
3.71 3.71
0.9264
CHF
Bcomp Ltd., Fribourg
1.1077
USD
Atomic Industries Inc., Wilmington / DE
4 Short fiscal year
3.9951
Anagog Ltd., Tel Aviv
1.1077
USD
AM Batteries LLC, Shrewsbury / MA
1.1077
USD
actnano Inc., Dover / DE
2. International
ILS
434
2023
437
USD
SGD
1.1077
1.4612
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
1,058
3,865,219
902
-396
1,114
2022
Customcells Holding GmbH, Itzehoe
EUR
19,032
2022
Fanzone Media GmbH, Berlin
EUR
11.33 11.33
4.99 4.99
158
50,165
-1,288
2022
Porsche Services Middle East & Africa FZE, Dubai
Porsche Services Singapore Pte. Ltd., Singapur
Porsche Smart Battery Shop s.r.o., Dubnica nad
Váhom
KRW 1.440.7150
Porsche Services Korea LLC, Seoul
1.4681
Porsche Motorsport Asia-Pacific Ltd., Shanghai
Porsche Norge AS, Oslo
CNY
7.8700
NOK 11.2408 75.00
100.00 100.00
100.00 100.00
4,6
2023
B. Associates accounted for at cost
10,672
-4,777
-2,673
75.00
2023
1. Germany
Porsche Sales & Marketplace Canada, Ltd.,
Toronto / ON
&Charge GmbH, Frankfurt am Main
EUR
21.65 21.65
CAD
2022
2022
208
2022
Wirtschaftsprüfungsgesellschaft
EY GmbH & Co. KG
Stuttgart, February 28, 2024
third parties in the context of this engagement
(www.de.ey.com/general-engagement-terms).
The "General Engagement Terms for Wirtschaftsprüfer and
Wirtschaftsprüfungsgesellschaften [German Public Auditors
and Public Audit Firms]" as issued by the IDW on 1 January
2024, which are attached to this report, are applicable to this
engagement and also govern our responsibility and liability to
LIMITATION OF LIABILITY
remuneration report required by section 162 (3) AktG and the
issue of a report on this audit. As we are issuing an unqualified
opinion on the audit of the content of the remuneration report,
this also includes the opinion that the disclosures pursuant to
section 162 (1) and (2) AktG are made in the remuneration
report in all material respects.
The audit of the content of the remuneration report described
in this auditor's report comprises the formal audit of the
INDEPENDENT AUDITOR'S REPORT
OTHER MATTER - FORMAL AUDIT OF THE
REMUNERATION REPORT
↑↓ ↑ ||
Further information Independent auditor's report
417
An audit involves performing procedures to obtain audit
evidence about the amounts in the remuneration report and the
related disclosures. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of
In our opinion, on the basis of the knowledge obtained in the
audit, the remuneration report for the fiscal year from January
1, to December 31, 2023 and the related disclosures comply,
in all material respects, with the financial reporting provisions
of section 162 AktG.
OPINION
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
material misstatement of the remuneration report and the
related disclosures, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control
relevant to the preparation of the remuneration report and the
related disclosures in order to plan and perform audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. An audit also includes evaluating
the accounting policies used and the reasonableness of
accounting estimates made by the executive directors and the
supervisory board, as well as evaluating the overall presentation
of the remuneration report and the related disclosures.
418
EUR
ON A LIMITED ASSURANCE ENGAGEMENT
We have performed a limited assurance engagement on the
non-financial statement of Dr. Ing. h.c. F. Porsche AG, Stuttgart
(hereinafter the "Company"), which is combined with the
non-financial statement of the group, comprising the section
"Non-financial statement 2023" of the combined management
report as well as the sections "Business Model" and "Risk and
Opportunity Report" incorporated by reference, for the period
from 1st January 2023 to 31th December 2023 (hereinafter
the "non-financial reporting").
↑↓ ↑ ||
419
Further information Independent auditor's report
Our audit firm applies the national legal requirements and
professional pronouncements - in particular the BS WP/vBP
["Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer":
Professional Charter for German Public Accountants/German
Sworn Auditors] in the exercise of their Profession and the IDW
Standard on Quality Management issued by the Institute of
Public Auditors in Germany (IDW): Requirements for Quality
Management in the Audit Firm (IDW QS 1) and accordingly
maintains a comprehensive quality management system that
includes documented policies and procedures with regard to
compliance with professional ethical requirements, profes-
sional standards as well as relevant statutory and other legal
requirements.
We have complied with the German professional require-
ments on independence as well as other professional conduct
requirements.
INDEPENDENCE AND QUALITY ASSURANCE
OF THE AUDITOR'S FIRM
These responsibilities of the Company's executive directors
include the selection and application of appropriate methods
for the preparation of the non-financial reporting and making
assumptions and estimates about individual non-financial dis-
closures that are reasonable in the circumstances. Furthermore,
The executive directors of the Company are responsible for
the preparation of the non-financial reporting in accordance
with Sec. 315c in conjunction with Secs. 289c to 289e HGB
["Handelsgesetzbuch": German Commercial Code] and Art. 8
of Regulation (EU) 2020/852 of the European Parliament and
of the Council of 18th June 2020 on the establishment of a
framework to facilitate sustainable investment and amending
Regulation (EU) 2019/2088 (hereinafter the "EU Taxonomy
Regulation") and the Delegated Acts adopted thereunder as well
as in accordance with their own interpretation of the word-
ing and terms contained in the EU Taxonomy Regulation and
the Delegated Acts adopted thereunder as set out in section
"EU-Taxonomy" of the non-financial reporting.
To Dr. Ing. h.c. F. Porsche AG, Stuttgart
RESPONSIBILITIES OF THE
EXECUTIVE DIRECTORS
Wirtschaftsprüfer
Orlov
[German Public Auditor]
Wirtschaftsprüfer
Matischiok
The EU Taxonomy Regulation and the Delegated Acts adopted
thereunder contain wording and terms that are still subject to
considerable interpretation uncertainties and for which clari-
fications have not yet been published in every case. Therefore,
the executive directors have disclosed their interpretation of the
EU Taxonomy Regulation and the Delegated Acts adopted there-
under in section "EU-Taxonomy" of the non-financial reporting.
They are responsible for the defensibility of this interpretation.
Due to the immanent risk that undefined legal terms may be
interpreted differently, the legal conformity of the interpretation
is subject to uncertainties.
the executive directors are responsible for such internal control
as the executive directors consider necessary to enable the
preparation of a non-financial reporting that is free from material
misstatement, whether due to fraud (manipulation of the non-
financial reporting) or error.
Not subject to our assurance engagement are other references
to disclosures made outside the non-financial reporting as well
as base-year disclosures.
[German Public Auditor]
Our responsibility is to express an opinion on this remuneration
report and the related disclosures based on our audit. We
conducted our audit in compliance with German Generally
Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer [Institute of
Public Auditors in Germany] (IDW). Those standards require
that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the
remuneration report and the related disclosures are free from
material misstatement, whether due to fraud or error.
Porsche Investments Management | S.à r.l.,
Luxemburg
-62,741
A. Equity-accounted associates
Porsche Drive LLC, Atlanta / GA
USD
1.1077
Porsche Drive S.r.l., Trento
EUR
100.00 100.00
100.00 100.00
3,037
-1,963
2022
1. Germany
Porsche eBike Performance d.o.o., Sveta Nedelja
HRK
7.5345
68.17 68.17
213
24,301
177
2022
-566
2022
-5,131
SASB INDEX
2,5 2014
Porsche Digital Mexico, S. de R.L. de C.V.,
Guadalajara
MXN
18.7689
Porsche Digital, Inc., Atlanta / GA
USD
2022
1.1077
CAD
1.4681
100.00 100.00
100.00 100.00
100.00 100.00
-1,447
4
2022
IV. ASSOCIATES
1,034
-66
Porsche Drive Canada, Ltd., Toronto / ON
Bertrandt AG, Ehningen
EUR
28.97
4,553
2022
2. International
Porsche Engineering Services North America, Inc.,
Carson / CA
Bugatti Rimac d.o.o., Sveta Nedelja
HRK
7.5345 45.00
USD
13,425
1.1077
4,6
2023
Rimac Group d.o.o., Sveta Nedelja
EUR
45.00
20.63 20.63
3,693,661
844,247
101,501
2022
100.00 100.00
2022
100.00 100.00
RON
-38,224
2022
IONITY Holding GmbH & Co. KG, München
EUR
15.12 15.12
358,264
382,045
22,160
2022
4.9759
-56,289
Porsche Engineering (Shanghai) Co., Ltd., Shanghai
CNY
7.8700
100.00 100.00
72,068
16,204
2022
Porsche Engineering Romania S.R.L., Cluj-Napoca
2022
AUDITOR'S RESPONSIBILITY
28.97
The executive directors and the supervisory board of Dr. Ing.
h.c. F. Porsche Aktiengesellschaft are responsible for the
preparation of the remuneration report and the related
disclosures in compliance with the requirements of section 162
AktG. In addition, the executive directors and the supervisory
board are responsible for such internal control as they
determine is necessary to enable the preparation of a
remuneration report and the related disclosures that are free
from material misstatement, whether due to fraud (i.e.,
fraudulent financial reporting and misappropriation of assets)
2. Completeness and measurement of provisions
for warranty obligations
With regard to the recognition and measurement policies
applied for capitalized development costs, refer to the disclo-
sure on intangible assets in the "Accounting policies" section
of the notes to the consolidated financial statements. For the
related disclosures on judgments by the executive directors and
sources of estimation uncertainty as well as the disclosures on
capitalized development costs, refer to the disclosures in the
"Accounting policies" section on estimates and assumptions by
management and note 13, "Intangible assets" in the "Notes to
the consolidated statement of financial position" section of the
notes to the consolidated financial statements.
REFERENCE TO RELATED DISCLOSURES
Our audit procedures did not lead to any reservations relating to
the recognition and recoverability of capitalized development
costs.
We also assessed the sensitivity analyses performed by the
executive directors in order to estimate any potential impair-
ment risk associated with a reasonably possible change in one
of the significant assumptions used in the valuation.
With respect to the rollforward from the multi-year operational
plan to the long-term forecast, we assessed the plausibility of
the assumed growth rate by comparing them with observable
data. To assess the discount rate and growth rate applied, we
analyzed the inputs used to determine them on the basis of
publicly available information and obtained an understanding of
the methods used with regard to the relevant requirements of
IAS 36.
We analyzed the planning process established in the Porsche AG
Group and tested the operating effectiveness of the controls
implemented therein. As a starting point, we compared the
Porsche AG Group's multi-year operational plan prepared by the
executive directors and acknowledged by the Supervisory Board
with the forecast figures in the underlying impairment test. We
discussed the significant planning assumptions with the exec-
utive directors and compared these with the results and cash
inflows realized in the past to assess the planning accuracy. For
the plausibility testing of input data of the impairment tests,
among other things we performed a comparison with general
and industry-specific market expectations underlying the
expected cash inflows. We also investigated the expectations
regarding the development of market shares for battery electric
vehicles and their indirect effects on the long-term cash inflows
expected by the executive directors.
REASONS WHY THE MATTER WAS DETERMINED
TO BE A KEY AUDIT MATTER
Moreover, we involved valuation specialists to assess among
other things the methodology used to determine the relevant
cash-generating unit and perform the impairment test in light
of the provisions of IAS 36. We also checked the arithmetical
accuracy of the valuation model used.
AUDITOR'S RESPONSE
In addition, judgment of the executive directors exists addi-
tionally in determining the cash-generating unit for impairment
testing, in determining the discount rate used and the long-
term growth rate assumed.
The ongoing transformation of the core business toward elec-
tromobility and digitalization as well as more stringent emission
and fuel consumption legislation lead to uncertainties that have
to be factored into the estimation of market shares for electric
vehicles and margins and the long-term growth rates. Exec-
utive directors' growth forecasts are subject to risk and may
be revised given the changing environmental regulations and
market conditions.
As long as capitalized development costs are not amortized,
they must be tested for impairment at least annually as part
of the related cash-generating unit (CGU) at the level of the
automotive segment defined as a cash-generating unit. The
assumption of realizing future economic benefits and the result
of testing the recoverability of capitalized development costs
during the analyses and impairment tests performed are highly
dependent on the executive directors' estimate of future cash
flows and the discount rate used. The recoverable amount of
the cash-generating unit is calculated on the basis of its value
in use, applying discounted cash flow models.
Significant criteria for the capitalization of development costs
are the feasibility of the development projects (including the
possibility of technical realization, the intention to complete
and the ability to use) as well as the expected future economic
benefit. The complexity of research and development projects
is increasing due to the technological transformation of the
Porsche AG Group and the resulting of new development areas
(including high investments in electromobility, software and
autonomous driving). The assessment of project feasibility plays
an increasingly significant role in this connection and is subject
to a high degree of judgment.
REASONS WHY THE MATTER WAS DETERMINED
TO BE A KEY AUDIT MATTER
1. Recognition and recoverability of
development costs
As part of our audit, we assessed the process for distinguishing
between research and development costs, particularly with
reference to capitalization criteria. In this connection, we carried
out analytical audit procedures such as comparisons of project
budgets and capitalization rates, inspected documentation on
project feasibility and tested process-related controls in cer-
tain areas. Besides this, we assessed the capitalization criterion
of the future economic benefit on the basis of the assumptions
regarding cash inflows of the CGU to which the capitalized
development services are allocated.
Below, we describe what we consider to be the key audit
matters:
Obligations for warranty claims are calculated on the basis of
estimated warranty costs and ex gratia arrangements. Where
unusual individual technical risks are anticipated, an individual
assessment is made whether and, if so, to what extent mea-
sures are required to remediate them and provisions need to be
recognized.
AUDITOR'S RESPONSE
is materially inconsistent with the consolidated financial
statements, with the combined management report or our
knowledge obtained in the audit, or
otherwise appears to be materially misstated.
In connection with our audit, our responsibility is to read the
other information and, in so doing, to consider whether the other
information
Our opinions on the consolidated financial statements and on
the combined management report do not cover the other infor-
mation, and consequently we do not express an opinion or any
other form of assurance conclusion thereon.
The Supervisory Board is responsible for the Report of the
Supervisory Board in the 2023 Annual Report. The executive
directors and the Supervisory Board are responsible for the
declaration pursuant to section 161 of the German Stock
Corporation Act (AktG) on the German Corporate Governance
Code, which is part of the group corporate governance declara-
tion, and for the remuneration report pursuant to section 162
AktG. In all other respects, the executive directors are respon-
sible for the other information. The other information comprises
the parts of the annual report specified in the appendix to the
auditor's report.
OTHER INFORMATION
With regard to the recognition and measurement policies
applied in accounting for provisions for warranty obligations,
refer to the disclosures in the "Accounting policies" section
on estimates and assessments by management and note 27,
"Non-current and current other provisions" in the "Notes to the
consolidated statement of financial position" section of the
notes to the consolidated financial statements.
REFERENCE TO RELATED DISCLOSURES
The amount of provisions for warranty claims is significant
overall. Besides the general use of judgment in selecting the
valuation methods and assessing the obligations, increasing
estimation uncertainty stems from the growing proportion of
hybrid and battery electric vehicles entering the market and a
lack of experience of their susceptibility to faults. In light of the
amount of the provisions and the judgment exercised during
valuation, the completeness and measurement of provisions for
warranty obligations was a key audit matter.
Our audit procedures did not lead to any reservations relating
to the completeness and valuation of provisions for warranty
obligations.
In light of the uncertainty in relation to the estimated future
warranty costs, we assessed the underlying valuation assump-
tions, especially the expected claim rate per vehicle and the
cost thereof, using analyses of historical data. Where there
was a lack of past experience, we obtained an understand-
ing of the assumptions made by the executive directors and
tested their plausibility using historical data for comparable
items. Using the calculation bases derived from these historical
data, we checked the estimated costs for expected claims per
vehicle. To assess the completeness of the provisions, we also
reconciled the number of sold vehicles used to recognize the
provision with the sales volumes. We obtained an understanding
of the method used for calculating the provisions, including the
discounting, and reperformed the calculations.
↑↓ ↑ 0 |||
412
↑↓ ↑
411
Further information Independent auditor's report
With regard to the accounting for the provisions for warranty
obligations, we examined the underlying processes for recording
previous claims, calculating and valuing the estimated future
warranty costs and recognizing the provisions, and tested
controls in some areas.
For significant individual technical risks, we assessed the
expected incidence of technical faults and the calculation of
expected costs per claim/vehicle using documentation on
previous claims, inspecting resolutions passed by technical
committees and holding discussions with the departments
responsible.
Responsibilities of the executive directors and the
Supervisory Board for the consolidated financial
statements and the combined management report
The executive directors are responsible for the preparation of
the consolidated financial statements that comply, in all mate-
rial respects, with IFRSS as adopted by the EU and the additional
requirements of German commercial law pursuant to section
315e (1) HGB, and that the consolidated financial statements,
in compliance with these requirements, give a true and fair view
of the assets, liabilities, financial position and financial per-
formance of the group. In addition, the executive directors are
responsible for such internal control as they have determined
necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud (i.e., fraudulent financial reporting and misappropri-
ation of assets) or error.
Key audit matters are those matters that, in our profes-
sional judgment, were of most significance in our audit of
the consolidated financial statements for the fiscal year from
January 1, 2023 to December 31, 2023. These matters were
addressed in the context of our audit of the consolidated finan-
cial statements as a whole, and in forming our opinion thereon;
we do not provide a separate opinion on these matters.
410
RESPONSIBILITY STATEMENT
408
↑↓ ↑ ||
407
LEGAL NOTICE
476
FINANCIAL CALENDAR 2024
INDEPENDENT AUDITOR'S REPORT
473
469
EMISSION AND CONSUMPTION INFORMATION
464
NONFINANCIAL KEY FIGURES
440
KEY FINANCIAL FIGURES
or error.
GLOSSARY
KEY AUDIT MATTERS IN THE AUDIT OF THE
CONSOLIDATED FINANCIAL STATEMENTS
TO DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT
Stuttgart, February 19, 2024
↑↓ ↑ ||
409
Further information Independent auditor's report
In addition, in accordance with article 10 (2) f) of the EU Audit
Regulation, we declare that we have not provided non-audit
services prohibited under article 5 (1) of the EU Audit Regu-
lation. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinions
on the consolidated financial statements and on the combined
management report.
We conducted our audit of the consolidated financial state-
ments and of the combined management report in accor-
dance with section 317 HGB and the EU Audit Regulation
(No. 537/2014, referred to subsequently as "EU Audit Reg-
ulation") and in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated by the
Institut der Wirtschaftsprüfer [Institute of Public Auditors in
Germany] (IDW). Our responsibilities under those requirements
and principles are further described in the "Auditor's respon-
sibilities for the audit of the consolidated financial statements
and of the combined management report" section of our
auditor's report. We are independent of the group entities in
accordance with the requirements of European law and German
commercial and professional law, and we have fulfilled our other
German professional responsibilities in accordance with these
requirements.
BASIS FOR THE OPINIONS
Pursuant to section 322 (3) sentence 1 HGB, we declare that
our audit and our examination have not led to any reservations
relating to the legal compliance of the consolidated financial
statements and of the combined management report.
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial
statements prepared in accordance with German accepted accounting principles give a true and fair view of the
net assets, financial position and results of operations of the group, and the combined management report includes
a fair review of the development and performance of the business and the position of the group, together with a
description of the material opportunities and risks associated with the expected development of the group.
the accompanying combined management report as a
whole provides an appropriate view of the group's position.
In all material respects, this combined management report
is consistent with the consolidated financial statements,
complies with German legal requirements and appropriately
presents the opportunities and risks of future development.
We do not express an opinion on the content of the parts of
the combined management report specified in the appendix
to the auditor's report.
-the accompanying consolidated financial statements com-
ply, in all material respects, with the IFRSS as adopted by the
EU, and the additional requirements of German commercial
law pursuant to section 315e (1) of the German Commer-
cial Code (HGB) and, in compliance with these require-
ments, give a true and fair view of the assets, liabilities and
financial position of the group as of December 31, 2023
In our opinion, on the basis of the knowledge obtained in the
audit,
We have audited the consolidated financial statements of
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Stuttgart, and its
subsidiaries (the "group"), which comprise the consolidated
income statement and consolidated statement of compre-
hensive income for the fiscal year from January 1, 2023 to
December 31, 2023, the consolidated statement of financial
position as of December 31, 2023, the consolidated state-
ment of changes in equity and the consolidated statement of
cash flows for the fiscal year from January 1, 2023 to Decem-
ber 31, 2023, and the notes to the consolidated financial state-
ments, including a summary of significant accounting policies.
In addition, we have audited the group management report of
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, which is combined
with the management report of Dr. Ing. h.c. F. Porsche Aktien-
gesellschaft, for the fiscal year from January 1, 2023 to Decem-
ber 31, 2023. In accordance with the German legal require-
ments, we have not audited the content of the parts of the
combined management report specified in the appendix to the
auditor's report and the company information stated therein
that is provided outside of the annual report and is referenced
in the combined management report.
OPINIONS
Report on the audit of the consolidated financial statements and
of the combined management report
The Executive Board
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
and of its financial performance for the reporting year from
January 1, 2023 to December 31, 2023, and
In preparing the consolidated financial statements, the execu-
tive directors are responsible for assessing the group's ability to
continue as a going concern. They also have the responsibility
for disclosing, as applicable, matters related to going concern.
In addition, they are responsible for financial reporting based
on the going concern basis of accounting unless there is an
intention to liquidate the group or to cease operations, or there
is no realistic alternative but to do so.
In light of the foregoing, the materiality of the capitalized
development costs in relation to total assets, the total amount
of research and development costs and the judgment exercised
in the valuation process, the capitalization of development costs
and the impairment test were a key audit matter.
The Supervisory Board is responsible for overseeing the group's
financial reporting process for the preparation of the consoli-
dated financial statements and of the combined management
report.
1. Parts of the combined management report
whose content is unaudited
APPENDIX TO THE AUDITOR'S REPORT:
TO DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT
INDEPENDENT AUDITOR'S REPORT
The notes to the consolidated financial statements and com-
bined management report contain other cross-references to
the websites of the group. We have not audited the contents of
information to which the cross-references refer.
The German Public Auditor responsible for the engagement is
Maxim Orlov.
GERMAN PUBLIC AUDITOR RESPONSIBLE
FOR THE ENGAGEMENT
RESPONSIBILITIES OF THE EXECUTIVE
DIRECTORS AND THE SUPERVISORY BOARD
416
415
Our auditor's report must always be read together with the
audited consolidated financial statements and the audited com-
bined management report as well as the assured ESEF docu-
ments. The consolidated financial statements and the combined
management report converted to the ESEF format-including
the versions to be published in the Unternehmensregister [Ger-
man Company Register]-are merely electronic renderings of
the audited consolidated financial statements and the audited
combined management report and do not take their place. In
particular, the ESEF report and our assurance opinion contained
therein are to be used solely together with the assured ESEF
documents made available in electronic form.
OTHER MATTER-USE OF THE AUDITOR'S
REPORT
- Performance of agreed-upon procedures
- Non-statutory audit of IT systems
- Non-statutory assurance services with regard to
financial information
In addition to the financial statement audit, we have provided to
the group entities the following services that are not disclosed
in the consolidated financial statements or in the combined
management report:
Further information Independent auditor's report
Furthermore, the executive directors are responsible for the
preparation of the combined management report that, as a
whole, provides an appropriate view of the group's position and
is, in all material respects, consistent with the consolidated
financial statements, complies with German legal requirements,
and appropriately presents the opportunities and risks of future
development. In addition, the executive directors are responsi-
ble for such arrangements and measures (systems) as they have
considered necessary to enable the preparation of a combined
management report that is in accordance with the applicable
German legal requirements, and to be able to provide sufficient
appropriate evidence for the assertions in the combined man-
agement report.
We have not audited the content of the following parts of the
combined management report:
-the group non-financial statement combined with the
non-financial statement contained in the "Non-Financial
Statement" section of the combined management report
the disclosures t contained in the "Report on Risks and
Opportunities" chapter in the section entitled "Monitoring of
the effectiveness of risk management, the internal control
system and the compliance management system"
-the corporate governance declaration which is published on
the website stated in the combined management report and
is part of the combined management report.
We have audited the attached remuneration report of Dr. Ing.
h.c. F. Porsche Aktiengesellschaft, Stuttgart, prepared to
comply with section 162 of the German Stock Corporation Act
(AktG) for the fiscal year from January 1 to December 31, 2023
and the related disclosures.
Wirtschaftsprüfer
[German Public Auditor]
Orlov
Matischiok
Wirtschaftsprüfer
[German Public Auditor]
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
Stuttgart, February 28, 2024
ment report disclosures whose content is audited and not our
auditor's report thereon.
but not the consolidated financial statements, not the manage-
- Further information
Responsibility statement
Corporate governance
- Sustainability
- To our shareholders
Magazine
tor's report:
"Other information" comprises the following parts of the annual
report, which were provided to us prior to us issuing this audi-
2. Further other information
We declare that the opinions expressed in this auditor's report
are consistent with the additional report to the Audit Commit-
tee pursuant to article 11 of the EU Audit Regulation (long-form
audit report).
We were elected as group auditor by the Annual General Meet-
ing on June 28, 2023. We were engaged by the Supervisory
Board on July 21, 2023. We have been the group auditor of Dr.
Ing. h.c. F. Porsche Aktiengesellschaft without interruption since
fiscal year 2020.
3. Company information outside of the annual
report referenced in the notes to the
consolidated financial statements and in
the combined management report
Evaluate whether the tagging of the ESEF documents with
Inline XBRL technology (iXBRL) in accordance with the
requirements of articles 4 and 6 of Commission Delegated
Regulation (EU) 2019/815, in the version in force at the date
of the financial statements, enables an appropriate and com-
plete machine-readable XBRL copy of the XHTML rendering.
FURTHER INFORMATION PURSUANT TO
ARTICLE 10 OF THE EU AUDIT REGULATION
We communicate with those charged with governance regard-
ing, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
- Perform audit procedures on the prospective information
presented by the executive directors in the combined
management report. On the basis of sufficient appropriate
audit evidence we evaluate, in particular, the significant
assumptions used by the executive directors as a basis for
the prospective information, and evaluate the proper deriva-
tion of the prospective information from these assumptions.
We do not express a separate opinion on the prospective
information and on the assumptions used as a basis. There
is a substantial unavoidable risk that future events will differ
materially from the prospective information.
↑↓ ↑ |||
414
Further information Independent auditor's report
413
report with the consolidated financial statements, its confor-
mity with [German] law, and the view of the group's position
it provides.
From the matters communicated with those charged with
governance, we determine those matters that were of most sig-
nificance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter.
-Evaluate the consistency of the combined management
-Evaluate the appropriateness of accounting policies used by
the executive directors and the reasonableness of estimates
made by the executive directors and related disclosures.
Conclude on the appropriateness of the executive directors'
use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast signifi-
cant doubt on the group's ability to continue as a going con-
cern. If we conclude that a material uncertainty exists, we
are required to draw attention in the auditor's report to the
related disclosures in the consolidated financial statements
and in the combined management report or, if such disclo-
sures are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained up
to the date of our auditor's report. However, future events
or conditions may cause the group to cease to be able to
continue as a going concern.
Obtain an understanding of internal control relevant to
the audit of the consolidated financial statements and of
arrangements and measures (systems) relevant to the audit
of the combined management report in order to design audit
procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effective-
ness of these systems.
Identify and assess the risks of material misstatement of
the consolidated financial statements and of the combined
management report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinions. The risk of not detecting a
material misstatement resulting from fraud is higher than
the risk of not detecting a material misstatement resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
-
We exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with section
317 HGB and the EU Audit Regulation and in compliance with
German Generally Accepted Standards for Financial Statement
Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
will always detect a material misstatement. Misstatements can
arise from fraud or error and are considered material if, individ-
ually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these consolidated financial statements and this combined
management report.
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error,
and whether the combined management report as a whole
provides an appropriate view of the group's position and, in all
material respects, is consistent with the consolidated financial
statements and the knowledge obtained in the audit, complies
with the German legal requirements and appropriately presents
the opportunities and risks of future development, as well as
to issue an auditor's report that includes our opinions on the
consolidated financial statements and on the combined man-
agement report.
Auditor's responsibilities for the audit of the
consolidated financial statements and of the
combined management report
- Evaluate the overall presentation, structure and content of
the consolidated financial statements, including the disclo-
sures, and whether the consolidated financial statements
present the underlying transactions and events in a manner
that the consolidated financial statements give a true and
fair view of the assets, liabilities, financial position and
financial performance of the group in compliance with IFRSS
as adopted by the EU and the additional requirements of
German commercial law pursuant to section 315e (1) HGB.
Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the group to express opinions on the consolidated
financial statements and on the combined management
report. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsi-
ble for our audit opinions.
OTHER LEGAL AND REGULATORY REQUIREMENTS
We also provide those charged with governance with a state-
ment that we have complied with the relevant independence
requirements, and communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence and where applicable, the related safeguards.
GROUP AUDITOR'S RESPONSIBILITIES FOR THE ASSURANCE
WORK ON THE ESEF DOCUMENTS
- Identify and assess the risks of material non-compliance
with the requirements of section 328 (1) HGB, whether due
to fraud or error, design and perform assurance procedures
responsive to those risks, and obtain assurance evidence
that is sufficient and appropriate to provide a basis for our
assurance opinion.
Our objective is to obtain reasonable assurance about whether
the ESEF documents are free from material intentional or
unintentional non-compliance with the requirements of section
328 (1) HGB. We exercise professional judgment and maintain
professional skepticism throughout the assurance work. We
also:
The Supervisory Board is responsible for overseeing the process
for preparing the ESEF documents as part of the financial
reporting process.
In addition, the executive directors of the company are responsi-
ble for such internal control as they have determined necessary
to enable the preparation of ESEF documents that are free from
material intentional or unintentional non-compliance with the
requirements of section 328 (1) HGB for the electronic report-
ing format.
RESPONSIBILITIES OF THE EXECUTIVE DIRECTORS AND THE
SUPERVISORY BOARD FOR THE ESEF DOCUMENTS
The executive directors of the company are responsible for the
preparation of the ESEF documents including the electronic
rendering of the consolidated financial statements and the com-
bined management report in accordance with section 328 (1)
sentence 4 No. 1 HGB and for the tagging of the consolidated
financial statements in accordance with section 328 (1) sen-
tence 4 No. 2 HGB.
We conducted our assurance work on the rendering of the
consolidated financial statements and the combined manage-
ment report contained in the file identified above in accordance
with section 317 (3a) HGB and the IDW Assurance Standard:
Assurance on the Electronic Rendering of Financial State-
ments and Management Reports Prepared for Publication
Purposes in Accordance with section 317 (3a) HGB (IDW ASS
410) (06.2022). Our responsibility in accordance therewith is
further described in the "Group auditor's responsibilities for the
assurance work on the ESEF documents" section. Our audit firm
applies the IDW Standard on Quality Management 1: Require-
ments for Quality Management in the Audit Firm (IDW QS 1).
BASIS FOR THE OPINION
In our opinion, the rendering of the consolidated financial state-
ments and the combined management report contained in the
file identified above and prepared for publication purposes com-
plies in all material respects with the requirements of section
328 (1) HGB for the electronic reporting format. Beyond this
assurance opinion and our audit opinions on the accompany-
ing consolidated financial statements and the accompanying
combined management report for the fiscal year from Janu-
ary 1, 2023 to December 31, 2023 contained in the "Report
on the audit of the consolidated financial statements and of the
combined management report" above, we do not express any
assurance opinion on the information contained within these
renderings or on the other information contained in the file
identified above.
Obtain an understanding of internal control relevant to the
assurance on the ESEF documents in order to design assur-
ance procedures that are appropriate in the circumstances,
but not for the purpose of expressing an assurance opinion
on the effectiveness of these controls.
OPINION
Report on the assurance on the electronic rendering
of the consolidated financial statements and
the combined management report prepared for
publication purposes in accordance with section
317 (3a) HGB
We have performed assurance work in accordance with section
317 (3a) HGB to obtain reasonable assurance about whether
the rendering of the consolidated financial statements and
the combined management report (hereinafter the "ESEF
documents") contained in PAG_KFB_IFRS_2023-12-31.zip
and prepared for publication purposes complies in all material
respects with the requirements of section 328 (1) HGB for the
electronic reporting format ("ESEF format"). In accordance with
German legal requirements, this assurance work extends only
to the conversion of the information contained in the consol-
idated financial statements and the combined management
report into the ESEF format and therefore relates neither to the
information contained within these renderings nor to any other
information contained in the file identified above.
- Evaluate whether the ESEF documents enable an XHTML
rendering with content equivalent to the audited consol-
idated financial statements and to the audited combined
management report.
- Evaluate the technical validity of the ESEF documents, i.e.,
whether the file containing the ESEF documents meets the
requirements of Commission Delegated Regulation (EU)
2019/815, in the version in force at the date of the financial
statements, on the technical specification for this file.
305-5
Reduction of GHG emissions
228-232,
GHG emissions intensity
442-444
305-6
Emissions of ozone-depleting substances (ODS)
109
305-4
Omission/comment
Page
305-7
Nitrogen oxides (NOx), sulfur oxides (SOX), and other
significant air emissions
444
Emissions
GRI 3: Material Topics 2021
305-1 Direct (Scope 1) GHG emissions
305-2 Energy indirect (Scope 2) GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
442
442-443
443
Further information GRI content index
427
GRI standards
↑↓ ↑ |||
228-232
GRI standards
Management of material topics
444
3-3
GRI 305: Emissions 2016
428
Waste
122
3-3
GRI 3: Material Topics 2021
111-112
Supplier environmental assessment
306-5 Waste directed to disposal
446-448
446-448
306-4 Waste diverted from disposal
446-448
306-3 Waste generated
112-113
306-2 Management of significant waste-related impacts
impacts
461
122
121, 236 237
Promotion of worker health
403-7 Prevention and mitigation of occupational health and
safety impacts directly linked by business relationships
403-8 Workers covered by an occupational health and safety
management system
403-9 Work-related injuries
122
Management of material topics
GRI 306: Waste 2020
306-1 Waste generation and significant waste-related
91, 101-104,
112-113
112-113
Page
GRI 3: Material Topics 2021
Omission/comment
Occupational health services
122
403-4
Worker participation, consultation, and communication
on occupational health and safety
121-122
403-5 Worker training on occupational health and safety
403-6
403-3
304-3 Habitats protected or restored
462-463
111-112
216, 233
91, 233-235
462-463
250-252
250-252
Omission/comment
Page
301-3 Reclaimed products and their packaging materials
301-1 Materials used by weight or volume
GRI 301: Materials 2016
Management of material topics
3-3
GRI 3: Material Topics 2021
Materials
205-1 Operations assessed for risks related to corruption
205-2 Communication and training about anti-corruption
policies and procedures
GRI 205: Anti-corruption 2016
Management of material topics
3-3
Information is collected internally but not
published for reasons of confidentiality fol-
lowing an internal management decision.
The link between the GRI standards listed in
the index and the material topics is described
on page 424.
GRI 3: Material Topics 2021
3-3
Management of material topics
112-113,
GRI 204: Procurement Practices 2016
129-131,237
3-3
Economic Performance is an additional GRI standard not linked with one of the Porsche AG Group's material sustainability topics.
GRI standards
Anti-corruption
GRI 3: Material Topics 2021
204-1 Proportion of spending on local suppliers
GRI 304: Biodiversity 2016
233-235,
Energy
101-104,
Management of material topics
GRI 3: Material Topics 2021
3-3
449
303-5 Water consumption
Biodiversity
449
303-4 Water discharge
448-449
303-3 Water withdrawal
110-111
303-2 Management of water discharge-related impacts
110-111
101-104,
Interactions with water as a shared resource
GRI 303: Water and Effluents 2018
303-1
110-111
101-104,
GRI 3: Material Topics 2021
3-3
GRI 302: Energy 2016
Management of material topics.
101-108
302-1 Energy consumption within the organization
446-447
440-441
440-441
104-108
services
Water and Effluents
GRI 3: Material Topics 2021
3-3
Management of material topics
302-2 Energy consumption outside of the organization
302-5 Reductions in energy requirements of products and
Management of material topics
GRI 3: Material Topics 2021
236-240
GRI 414: Supplier social assessment 2016
3-3 Management of material topics
GRI 3: Material Topics 2021
Supplier social assessment
126
413-2 Operations with significant actual and potential nega-
tive impacts on local communities
Management of material topics
126
GRI 413: Local communities 2016
3-3
GRI 3: Material Topics 2021
Local communities
410-1 Security personnel trained in human rights policies or 236-240
procedures
236-240
414-1 New suppliers that were screened using social criteria
GRI 410: Security practices 2016
3-3
GRI 3: Security practices 2021
Security practices
of forced or compulsory labor
409-1 Operations and suppliers at significant risk for incidents 240
236-240
GRI 409: Forced or compulsory labor 2016
Management of material topics
3-3
Forced or compulsory labor
TCFD INDEX
Omission/comment
Page
GRI standards
Management of material topics
462
236-240
414-2 Negative social impacts in the supply chain and actions 237-238,
taken
246-250
Omission/comment
418-1 Substantiated complaints concerning breaches of
248
customer privacy and losses of customer data
Founded in 2015, the Task Force on Climate-Related Financial
Disclosures (TCFD) aims to develop standardized and compa-
rable disclosures so that climate-related risks can be assessed
appropriately. The purpose of this is to help companies integrate
climate-related risks and opportunities into their risk manage-
ment, planning, and reporting.
In 2017, the Task Force published recommendations concerning
climate-related reporting. These recommendations are split into
the following categories: Governance, Strategy, Risk Manage-
ment, and Metrics and Targets.
The following report by Porsche AG is aligned with the recom-
mendations and aims to contribute to financial market stability
through appropriate reporting.
DESCRIBE THE BOARD'S OVERSEEING OF
CLIMATE-RELATED RISKS AND OPPORTUNITIES:
Pursuant to section 91, paragraphs 2 and 3, of Germany's
Stock Corporation Act (AktG), the management board of a
stock corporation is obligated to institute a monitoring system
in order to allow developments jeopardizing the company's
continued existence to be identified at an early point in time.
This is implemented at Porsche AG by means of the existing risk
management system. The risk management system is used to
identify and evaluate risks as well as handle and monitor their
management. These include "climate-related" risks-for exam-
ple, physical or transitory climate risks.
The Executive Board of Porsche AG receives quarterly reports
on the current risk exposure (primary individual risks and
overall risk assessment) and, based on these, is informed about
the current degree of jeopardy for the company's continued
existence in particular. In addition, the effectiveness of the risk
early-warning system is audited annually by external auditors.
DESCRIBE MANAGEMENT'S ROLE IN ASSESSING
AND MANAGING CLIMATE-RELATED RISKS AND
OPPORTUNITIES:
The risk management system stipulates that the "first
line"-management of the operating units-bears the initial
responsibility for the operational identification, assessment,
control, and monitoring of risks. Generally speaking, the
management of the unit with responsibility over a given risk is
always responsible for controlling and monitoring that risk. This
rule applies to all risks and therefore also to climate-related
risks.
DESCRIBE THE CLIMATE-RELATED RISKS AND
OPPORTUNITIES PORSCHE AG HAS IDENTIFIED
OVER THE SHORT, MEDIUM, AND LONG TERM:
Porsche AG updates its risk inventory on a regular basis.
Climate-related risks were assessed from two different
perspectives again in the 2023 reporting year: the impacts of
physical climate change (such as extreme weather events) and
the transition risks related to the transition to a lower-carbon
economy (such as regulations concerning the CO2 emissions of
the vehicle fleet).
Physical climate risks
3-3
Customer health and safety
GRI 3: Material Topics 2021
3-3 Management of material topics
GRI 416: Customer health and safety 2016
uct and service categories
462-463
430
246-250
416-1 Assessment of the health and safety impacts of prod-
416-2 Incidents of non-compliance concerning the health and 252
safety impacts of products and services
GRI 3: Material Topics 2021
Management of material topics.
GRI 418: Customer privacy 2016
Customer privacy
248-250
↑ ↓ ↑ O |||
429
Further information GRI content index
119-126
401-2 Benefits provided to full-time employees that are not
provided to temporary or part-time employees
451,456
401-1 New employee hires and employee turnover
450, 457
460
241-246
men
405-1 Diversity of governance bodies and employees
405-2 Ratio of basic salary and remuneration of women to
GRI 405: Diversity and equal opportunity 2016
Management of material topics
3-3
GRI 3: Material Topics 2021
Diversity and equal opportunity
246
404-3 Percentage of employees receiving regular perfor-
mance and career development reviews
125, 243-246
457-458
308-1 New suppliers that were screened using environmental 238-240, 462
criteria
308-2 Negative environmental impacts in the supply chain
and actions taken
Employment
GRI 3: Material Topics 2021
3-3 Management of material topics
GRI 401: Employment 2016
401-3 Parental leave
236-240,463
Training and education
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 404: Training and education 2016
404-1 Average hours of training per year per employee
404-2 Programs for upgrading employee skills and transition
assistance programs
241-246
119-126
GRI 308: Supplier environmental assessment 2016
459
GRI 3: Material Topics 2021
Metrics concerning work-related injuries for
workers who are not employees are unavail-
able (403-9 b). The data are not currently
being collected internally. The data are
potentially set to be collected in the future.
of child labor
408-1 Operations and suppliers at significant risk for incidents 240
GRI 408: Child labor 2016
236-240
investigation
121
120
403-1 Occupational health and safety management system
403-2 Hazard identification, risk assessment, and incident
119-126,
236-240
GRI 403: Occupational health and safety 2018
Management of material topics
3-3
GRI 3: Material Topics 2021
Occupational health and safety
402-1 Minimum notice periods regarding operational changes 125
GRI 402: Labor/management relations 2016
3-3
Non-discrimination
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 406: Non-discrimination 2016
Labor/management relations
241-246
Child labor
119-126
GRI 3: Material Topics 2021
3-3
Management of material topics.
Management of material topics.
406-1 Incidents of discrimination and corrective actions taken 126,460
Procurement Practices
Communities' rights
228-232, 235
CONTENT INDEX
GRI CONTENT INDEX
Corporate governance
Social affairs
Environment
Topics
From the material topics identified, the Porsche AG Group has derived the definitive GRI sustainability reporting standards, which
are listed in the table below.
Application of GRI
424
Further information About this report
423
Political engagement and lobbying activities
Management of relationships with suppliers
including payment practices
Personal safety of consumers and/or end-users
GRI
Communities' rights
Biodiversity and ecosystems
Waste
Water and marine resources
Energy and climate change adaptation
Pollution and substances of concern
Corporate governance, corruption and bribery
end-users
Sustainability, work-related rights and equal
treatment and opportunities in the value chain
Information-related impacts for consumers and/or
Equal treatment and opportunities within the own
workforce
Topics in the sustainability report
The following table contains the topics defined as material by
the Porsche AG Group as well as their positions in the annual
and sustainability report. A detailed description of the material-
ity assessment, including the method of segmentation between
the nonfinancial report and the sustainability report, can be
found under → Stakeholder dialog and materiality.
In 2023, Porsche AG conducted a materiality assessment to
identify material topics that contribute to the concerns defined
under CSR-RUG and fall into the categories of environment,
social, and corporate governance. As the multistage process
takes into account the principle of double materiality, it is
already aligned with the future specifications of the CSRD and
ESRS.
→ GRI 3-2
Material topics as part of the nonfinancial report
More information is available in the Independent auditor's report
on a limited assurance engagement to audit the nonfinancial
report.
The remuneration report 2023 has been prepared and audited
by EY in accordance with the requirements of Section 162
AktG. Pursuant to Section 289b (3) and Section 315b (3) HGB,
EY conducted a voluntary business audit, in a limited assur-
ance engagement, on the content of the nonfinancial report in
accordance with ISAE 3000 (Revised).
Working conditions for own workers
ESSENTIALS SERVICE
Climate change mitigation
Circular economy
GRI 2: General Disclosures 2021
GRI standards
GRI 1: Foundation 2021
None
Applicable GRI Sector Standard(s)
GRI 1 used
For the Content Index-Essentials Service, GRI Services reviewed that the GRI content index has been presented in a way
consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is
clearly presented and accessible to the stakeholders. The service was performed on the German version of the report.
Statement of use
The Porsche AG Group has reported in accordance with the GRI Standards for the period
January 2023 to December 2023.
Indirect Economic Impacts (GRI 203)
Procurement Practices (GRI 204), Supplier Social
Assessment (GRI 414)
Anti-corruption (GRI 205), Supplier Environmental
Assessment (GRI 308)
Customer Health and Safety (GRI 416)
Local Communities (GRI 413)
Employment (GRI 401), Labor/Management
Relations (GRI 402), Occupational Health and
Safety (GRI 403)
Customer Health and Safety (GRI 416),
Customer Privacy (GRI 418)
Supplier Environmental Assessment (GRI 308),
Occupational Health and Safety (GRI 403),
Non-discrimination (GRI 406), Child Labor (GRI 408),
Forced or Compulsory Labor (GRI 409), Security
Practices (GRI 410), Supplier Social Assessment
(GRI 414)
Employment (GRI 401), Labor/Management
Relations (GRI 402), Training and Education (GRI
404), Diversity and Equal Opportunity (GRI 405),
Non-discrimination (GRI 406)
Waste (GRI 306)
Water and Effluents (GRI 303)
Biodiversity (GRI 304)
Energy and climate change adaptation
Pollution and substances of concern
Water and marine resources
Biodiversity and ecosystems
Waste
Equal treatment and opportunities within the own
workforce
Sustainability, work-related rights and equal
treatment and opportunities in the value chain
Information-related impacts for consumers and/or
end-users
Climate change mitigation
Circular economy
Working conditions for own workers
Management of relationships with suppliers
including payment practices
Political engagement and lobbying activities
Key GRI reporting standards
Emissions (GRI 305), Supplier Environmental
Assessment (GRI 308)
Materials (GRI 301), Waste (GRI 306)
Energy (GRI 302), Emissions (GRI 305)
Emissions (GRI 305)
Personal safety of consumers and/or end-users
Corporate governance, corruption and bribery
Topics in the nonfinancial report
Corporate governance
Social affairs
Wirtschaftsprüfer
Welz
[German Public Auditor]
Wirtschaftsprüfer
Hinderer
Wirtschaftsprüfungsgesellschaft
EY GmbH & Co. KG
Stuttgart, 28th February 2024
We make express reference to the fact that we will not update
the report to reflect events or circumstances arising after it was
issued, unless required to do so by law. It is the sole respon-
sibility of anyone taking note of the summarized result of our
work contained in this report to decide whether and in what
way this information is useful or suitable for their purposes and
to supplement, verify or update it by means of their own review
procedures.
The "General Engagement Terms for Wirtschaftsprüfer and
Wirtschaftsprüfungsgesellschaften [German Public Audi-
tors and Public Audit Firms]" as issued by the Institut der
Wirtschaftsprüfer [Institute of Public Auditors in Germany] on
1st January 2017 are applicable to this engagement and also
govern our relations with third parties in the context of this
engagement (www.de.ey.com/general-engagement-terms). In addition,
please refer to the liability provisions contained there in no. 9
and to the exclusion of liability towards third parties. We accept
no responsibility, liability or other obligations towards third
parties unless we have concluded a written agreement to the
contrary with the respective third party or liability cannot effec-
tively be precluded.
GENERAL ENGAGEMENT TERMS AND LIABILITY
We draw attention to the fact that the assurance engagement
was conducted for the Company's purposes and that the report
is intended solely to inform the Company about the result of
the assurance engagement. As a result, it may not be suitable
for another purpose than the aforementioned. Accordingly, the
report is not intended to be used by third parties for making
(financial) decisions based on it. Our responsibility is to the
Company alone. We do not accept any responsibility to third
parties. Our assurance conclusion is not modified in this respect.
RESTRICTION OF USE
We do not express an assurance conclusion on the other refer-
ences to disclosures made outside the non-financial reporting,
base-year disclosures or the external sources of documentation
or expert opinions mentioned in the non-financial reporting.
Based on the assurance procedures performed and the evi-
dence obtained, nothing has come to our attention that causes
us to believe that the non-financial reporting of the Company
for the period from 1st January to 31st December 2023 is
not prepared, in all material respects, in accordance with
Sec. 315c in conjunction with Secs. 289c to 289e HGB and
the EU Taxonomy Regulation and the Delegated Acts adopted
thereunder as well as the interpretation by the executive direc-
tors as disclosed in section "EU-Taxonomy" of the non-financial
reporting.
ASSURANCE CONCLUSION
The risk inventory of Porsche AG still contains the physical
climate risks identified for various production locations as part
of a group-wide Volkswagen project.
In determining the disclosures in accordance with Art. 8 of the
EU Taxonomy Regulation, the executive directors are required to
interpret undefined legal terms. Due to the immanent risk that
undefined legal terms may be interpreted differently, the legal
conformity of their interpretation and, accordingly, our assur-
ance engagement thereon are subject to uncertainties.
- Evaluation of the process to identify the economic activities
taxonomy-eligible and taxonomy-aligned as well as the
corresponding disclosures in the non-financial reporting,
Evaluation of the presentation of disclosures in the non-
financial reporting.
- Inquiries, inspection of sample documents and obtaining
evidence relating to the collection and reporting of selected
disclosures in the non-financial reporting,
- Analytical procedures on selected disclosures in the non-
financial reporting,
- Inspection of the relevant documentation of the systems and
processes for collecting, aggregating and validating relevant
data in the reporting period,
Identification and assessment of risks of material misstate-
ment in the non-financial reporting,
[German Public Auditor]
- Inquiries of the executive directors and relevant employees
regarding the selection of topics for the non-financial report-
ing, the impact and risk assessment and the policies of the
Company and the Group for the topics identified as material,
Inquiries of the executive directors and relevant employees
involved in the preparation of the non-financial reporting
about the preparation process, about the internal controls
related to this process as well as disclosures in the non-
financial reporting,
In the course of our assurance engagement we have, among
other things, performed the following assurance procedures and
other activities:
In a limited assurance engagement, the procedures performed
are less extensive than in a reasonable assurance engagement,
and accordingly, a substantially lower level of assurance is
obtained. The selection of the assurance procedures is subject
to the professional judgment of the auditor.
We conducted our assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000
(Revised): "Assurance Engagements other than Audits or
Reviews of Historical Financial Information" issued by the IAASB.
This standard requires that we plan and perform the assurance
engagement to obtain limited assurance about whether any
matters have come to our attention that cause us to believe
that the Company's non-financial reporting is not prepared, in all
material respects, in accordance with Sec. 315c in conjunction
with Secs. 289c to 289e HGB and the EU Taxonomy Regula-
tion and the Delegated Acts adopted thereunder as well as the
interpretation by the executive directors disclosed in section
"EU-Taxonomy" of the non-financial reporting. Not subject to
our assurance engagement are other references to disclosures
made outside the non-financial reporting, base-year disclosures
as well as the external sources of documentation or expert
opinions mentioned in the non-financial reporting.
Our responsibility is to express a conclusion with limited assur-
ance on the non-financial reporting based on our assurance
engagement.
RESPONSIBILITIES OF THE AUDITOR
420
Gain an understanding of the structure of the sustainability
organization and stakeholder engagement,
General Disclosures
Further information Independent auditor's report
↑↓ ↑ ||
Environment
Topics
In addition to careful data collection and recording via internal
reporting and processing systems, as well as detailed internal
consolidation and inspection of the information and data
contained therein, an independent audit was conducted on the
consolidated financial statements and combined management
report by EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft.
→ GRI 2-5
External audit
The information in this report (excluding pages 6 to 65) relates
to the entire Porsche AG Group. If information only applies to
individual areas, this is made explicitly clear. Unless indicated
otherwise, all information relating to the Porsche AG Group also
applies to Porsche AG. Besides Porsche AG, the Porsche AG
Group encompasses all major national and international
subsidiaries over which Porsche AG exercises direct or indirect
control. Overall, the basis of consolidation consists of 117 fully
consolidated companies, 28 of which are based in Germany and
90 abroad.
The annual and sustainability report is published at the annual
press conference of Porsche AG. The reporting period was from
January 1, 2023, to December 31, 2023.
→ GRI 2-2 and GRI 2-3
MORE INFORMATION ABOUT THE REPORT
Publication and applicability
The disclosures relating to sustainability in the nonfinancial
report and in the sustainability report have already been pre-
pared on the basis of the future reporting requirements of the
Corporate Sustainability Reporting Directive (CSRD) and the
associated European Sustainability Reporting Standards. These
new European requirements are set to be implemented in full in
the coming reporting year.
Additionally, the Sustainability Accounting Standard Board
(SASB) has published the "Automobiles" industry standard, on
the basis of which companies are able to publish relevant indus-
try-specific sustainability information for investors. The SASB
index is presented from page 434 to 436.
Furthermore, Porsche AG follows the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD) on
effective climate-related reporting. The information on how
climate-related opportunities and risks are handled is published
as part of a TCFD index on page 431 to 433.
The Porsche AG Group has prepared its annual and sustainability
report in accordance with the current version of the GRI Sus-
tainability Reporting Standards of 2021. The GRI content index
can be found on pages 425 to 430. The GRI examined this index
in its entirety as part of its "Content Index-Essentials" service.
bribery. In accordance with the CSR Directive Implementation
Act (CSR-RUG), this text focuses on material topics that are
necessary in order to understand the course of business, the
business result, the position of the Porsche AG Group, and the
impact of the Porsche AG Group on the nonfinancial aspects.
Moreover, Porsche AG complies with the reporting obligations
set out in Article 8 of the Taxonomy Regulation (officially Regu-
lation (EU) 2020/852) in the nonfinancial report.
The nonfinancial report relates to the subject areas of Section
289c HGB: environmental, employee, and social concerns,
respect for human rights, and the fight against corruption and
The consolidated financial statements of Porsche AG as at
December 31, 2023, have been prepared in accordance with
the applicable International Financial Reporting Standards
(IFRS), as adopted by the European Union (EU), as at the report-
ing date, as well as the supplementary regulations of Section
315e of Germany's Commercial Code (HGB). The combined
management report is based on the German Commercial Code
(HGB) and the German accounting standards formalizing the
requirements of the Commercial Code.
Reporting standards
422
↑↓ ↑ 0 |||
ABOUT THIS REPORT
REPORTING POLICY
Reporting structure
The two primary objectives of Porsche AG's activities are to
accomplish economic success and take on responsibility-for
sustainable activity, secure jobs, and society. Active practice,
trust, and commitment are what set Porsche AG apart. It is
therefore important to Porsche AG to make the public aware
of business developments and its activities in connection with
sustainability.
421
This annual and sustainability report of the Porsche AG Group
consists of the following parts:
To our shareholders (pages
67 to 87),
Sustainability report (pages 89 to 133),
Corporate governance (pages 135 to 177),
Combined management report including the nonfinancial report
(pages → 179 to 273),
Consolidated financial statements (pages → 275 to 405),
Further information (pages 407 to 476).
Magazine (pages → 6 to 65),
115-119
2-1 Organizational details
Omission/comment
Stakeholder engagement
94, 131-132
103, 129-132,
250-253
250-253
217, 236-240
105, 109-110,
250-253
Membership associations
2-28
Compliance with laws and regulations
2-27
Mechanisms for seeking advice and raising concerns
2-26
Processes to remediate negative impacts
2-29
2-25
Embedding policy commitments
2-24
250-253
129-132,
68
Statement on sustainable development strategy
Policy commitments
2-23
2-22
153-177
Page
Strategy, policies, and practices
Annual total compensation ratio
2-21
Process to determine remuneration
131-132,
Approach to stakeholder engagement
94-97
2-30
107-108,
203-2 Significant indirect economic impacts
Infrastructure investments and services supported
GRI 203: Indirect Economic Impacts 2016
203-1
99, 115
3-3 Management of material topics
GRI 3: Material Topics 2021
276, 439
104-105,
254-269,285,
431-432
99,308,438
250-253
99, 129-131,
Indirect Economic Impacts
201-4 Financial assistance received from government
due to climate change
201-2 Financial implications and other risks and opportunities
Direct economic value generated and distributed
201-1
GRI 201: Economic Performance 2016
Collective bargaining agreements
123, 460
Material Topics
GRI 3: Material Topics 2021
3-1
Process to determine material topics
2-20
94-99, 423-424
List of material topics
98,423-424
Economic Performance'
GRI 3: Material Topics 2021
3-3
Management of material topics
3-2
GRI standards
426
↑↓ ↑ |||
2-9
Governance
Workers who are not employees
2-8
Employees
2-7
The annual and sustainability report is printed exclusively on the
organic paper types "Lessebo Design® Smooth bright, FSC" and
"enviroⓇ pure, FSC".
Inclusive language is a commitment to diversity and equal
opportunities. This report therefore uses gender-neutral
formulations. For the sake of legibility, any exceptions only use a
single form of address, be it diverse or feminine. All formulations
expressly apply to all genders and gender identities equally.
If content that had been previously published has since been
corrected-for example, due to changes in collection methods
for key figures and data-this is indicated.
The figures presented in the report are rounded to one
decimal place.
EDITORIAL REMARKS
456
450-455
236-240
210, 229,
Activities, value chain, and other business relationships 92, 180-182,
2-6
180-181
The organization and its reporting practices
2-2
Entities included in the organization's sustainability
reporting
423
2-3
Governance structure and composition
2-4
423
424
2-5
External assurance
423
Activities and workers
Reporting period, frequency, and contact point
Restatements of information
Page
138-152
Nomination and selection of the highest governance
2024
425
Further information GRI content index
153-177
Remuneration policies
2-19
137-138,
153-177
90-99,210-213
Collective knowledge of the highest governance body
Evaluation of the performance of the highest gover-
nance body
2-18
2-17
239, 250-252
Communication of critical concerns
2-16
Conflicts of interest
2-15
250-252
138-146
body
2-11
Chair of the highest governance body
147-152
2-12
2-10
Role of the highest governance body in overseeing the
management of impacts
2-13
Delegation of responsibility for managing impacts
90-99,210-213
2-14
90-99,210-213
Role of the highest governance body in sustainability
reporting
90-99,210-213
More information about physical climate risks and the applied
scenario analyses is available under → Energy and climate change
40,530
Further information TCFD index
0.00
-0.06%
-1.39
2021
2022'
2023
76.28%
0.05%
1.14
1,670.61
0.07%
83.68%
1.54
1,856.45
-0.03
286.65
-5.88
4.49
11.80
Spain
1.57
1,569.80
5,568.98
Germany
4.74
Czech Republic
The previous year has been updated (see the annotations regarding IFRS 17 → Effects of new or amended IFRS).
6.14%
134.43
6.89%
152.72
43.64
109.08
275.10
China
0.00%
France
14.78
5.80
28.33
Irleand
Appropriation
0.12%
2.57
0.21%
4.58
0.18
4.39
52.31
Hong Kong
0.98%
21.56
0.48%
10,247
10.61
21.00
59.00
United Kingdom
%
€ million
%
€ million
%
€ million
0.26%
5.71
0.10%
2.12
-3.68
-10.39
12,047
12,652
Value added
-23,015
Cost of materials
0.44%
9.59
0.25%
5.62
-4.02
9.64
20.90
Australia
33,138
893
1,702
37,637
40,530
1,256
-22,934
Other income
0.24
0.02%
0.47
0.12
0.36
1.33
Austria
Sales revenue
Source
0.00%
0.00
0.00%
-0.01
-0.01
0.01%
5.92
-19,363
41.79
0.12%
2.73
0.08%
1.85
-0.85
2.69
14.97
Switzerland
-1,207
-1,169
-2,592
Other upfront expenditures
0.64%
13.93
Brazil
0.44%
9.34
0.31
33.77
Canada
-3,214
-3,189
-3,528
Depreciation, amortization, and impairment losses
1.09%
23.88
0.81%
17.86
-4.01
21.87
9.65
0.26
6.18
0.28%
21.2
2,176
8.1
981
33.5
4,241
to the company (reserves)
0.10%
2.09
0.01%
0.19
-1.66
1.85
10.87
Taiwan
Singapore
126
1.3
157
2.4
309
to creditors (interest expense)
-0.04%
-0.89
0.00%
0.00
-0.02
0.02
-5.59
Russia
1.2
no data
28.79
-6.49
adaption.
↑↓ ↑ |||
Further information Key financial figures
439
In 2023, Porsche AG and its consolidated companies in
Germany were no longer part of the income tax group with
Porsche Holding Stuttgart GmbH, but were themselves liable
for income taxes in Germany. In 2023, the tax payments by the
fully consolidated Porsche AG Group companies in Germany
amounted to €1,671 million, and contained €1 million in
payments attributable to other periods. At €243 million, the
tax payments of the fully consolidated companies of the
Porsche AG Group in the USA include €15 million in refunds
attributable to other periods, tax credits of €42 million, and
changes in tax assets and tax liabilities that were recognized
as cash items. → Key financial figures
The difference between the income tax expenditure of all fully
consolidated Porsche AG Group companies and their income
tax payments was largely due to differences in maturity dates:
normally, the tax expense or income leads to tax payments or
refunds in subsequent years, whereas the listed payments also
encompass payments and refunds for previous years.
Calculation of profit before tax under IFRS after consolidation per country: for
the sake of simplicity, this report presents a percentage-based breakdown
of the consolidation entries relative to the profit before tax under IFRS and
consolidation entries.
In 2023, the Group-wide profit before tax under IFRS was
€7,375 million.' The total tax expenditure of all fully consoli-
dated Porsche AG Group companies was €2,218 million. This
contained deferred taxes of €231 million, which were the tax
expense or income resulting from deviations between the
IFRS result and the taxable base. This is already covered in the
current financial year, although it will not lead to the actual tax
expense or income as well as tax payments or refunds until
future years. The total tax rate in the Porsche AG Group was
30.1% in 2023.
FISCAL TRANSPARENCY
The previous year has been updated (see the annotations regarding IFRS 17 → Effects of new or amended IFRS).
11.10%
100.00%
100.0
10,247
100.0
9.47
12,047
12,652
Value added
0.35%
7.58
243.18
2,190.00
5.02%
100.00%
111.27
2,218.00
-70.94
231.22
182.22
1,986.78
7,375.00
Total
1,125.23
United States
0.13%
2.98
100.0
0.00
no data
no data
10.22
0.40%
8.96
-4.49
13.45
27.27
Japan
43.7
4,478
41.2
4,961
40.7
5,149
to employees (wages, salaries, benefits)
0.47%
1.02%
0.43%
9.59
-3.81
13.40
35.05
Italy
18.2
1,862
33.1
3,986
7.2
916
to shareholders (profit transfer)
0.34%
22.39
no data
to the state (taxes, duties)
16.1
no data
no data
Other taxes
0.00%
0.00
0.00%
0.00
0.00
0.00
-20.80
Luxembourg
no data
no data
no data
2,037
no data
no data
Income tax
0.53%
11.59
0.76%
16.76
7.31
9.45
31.53
South Korea
15.7
1,605
16.3
1,962
no data
14.85
7.45
2021
Porsche AG has published a statement on the observation and promotion of human rights. With
regard to human rights, Porsche AG, in cooperation with the Volkswagen Group, uses a due
diligence management system that systematically analyzes, prioritizes, and reduces risks to
human rights in the supply chain. Porsche AG operates a multistage complaint management
system that provides internal and external complainers with a confidential channel through
which to report potential violations of human rights and environmental obligations. Internal and
external target groups can find information on the website of Porsche AG about the report-
ing channels in our complaint management system. All complaints about potential violations
of human rights and environmental obligations in our field of business and supply chain are
processed in a standardized process. In cooperation with a start-up, Porsche AG uses artificial
intelligence to scan supplier-related news and detect when suppliers are failing to comply with
these obligations.
Various audits and measures have been introduced in order to comply with due diligence obli-
gations in the supply chain. With the S-rating, Porsche AG is able to examine a direct supplier's
compliance with the Code of Conduct for Business Partners. If a direct supplier receives a
negative score, it will no longer be considered for future contracts until it has addressed the
identified shortcomings and meets the sustainability requirements.
Description of the management of
risks associated with the use of critical
materials
Materials sourcing
TR-AU-440a.1
The product portfolio of Porsche AG has the largest influence over its emissions. The strategy of
Porsche AG is to invest in battery electric vehicles (BEVS). Porsche AG is currently planning for
more than 80% of new Porsche models to be fully electric by 2030-depending on customer
demand and the development of electric mobility in the individual regions of the world. Along-
side its electrification strategy, Porsche AG is working to decarbonize its products and business
processes continuously. Porsche AG is working to make the value chain for its newly produced
vehicles balance-sheet CO₂ neutral by 2030.
Discussion of strategy for managing fleet
fuel economy and emissions risks and
opportunities
TR-AU-410a.3
vehicles.
Porsche AG and selected subsidiaries merely produce battery electric vehicles and plug-in hybrid
In the 2023 reporting year, there were stoppages lasting a number of hours in connection with
IG Metall demonstrations as part of the automotive trade's 2023 round of collective bargaining
in sections of the locations in Germany (Porsche Niederlassung Hamburg GmbH, Porsche Nie-
derlassung Stuttgart GmbH, Porsche Niederlassung Berlin GmbH, and Porsche Niederlassung
Berlin-Potsdam GmbH).
Collective bargaining agreements cover 86.1% of the total workforce in Porsche AG's con-
solidated subsidiaries in Germany. Furthermore, collective agreements apply to 6% of the
total workforce in consolidated subsidiaries of Porsche AG in Germany without a collective
bargaining agreement but with elected employee representatives. Porsche AG is part of the
UN Global Compact and is committed to its ten principles and to social responsibility. In doing
so, Porsche AG supports key worker rights, from the abolition of forced and child labor to equal
opportunities.
There were ten safety-related product recalls in 2023.
100% of safety-related defect complaints have been investigated.
Porsche AG places great emphasis on the safety of vehicles in the design and development
stages. Porsche vehicles that have been inspected in line with the requirements of the Euro-
pean New Car Assessment Program have each received a five-star overall rating for safety.
320,221 Porsche vehicles were sold in 2023.
336,280 Porsche vehicles were manufactured in 2023.
Number of (1) work stoppages and (2)
total days idle
TR-AU-310a.2
Percentage of active workforce covered
under collective bargaining agreements
Labor practices
TR-AU-310a.1
Number of vehicles recalled
Number of safety-related defect
complaints; percentage investigated
TR-AU-250a.3
TR-AU-250a.2
Percentage of vehicle models rated by
NCAP programs with an overall five-star
safety rating, by region
Product safety
TR-AU-250a.1
Number of vehicles sold
Number of vehicles manufactured
TR-AU-000.B
TR-AU-000.A
Activity metrics
'Porsche China, Porsche Canada, Porsche Brazil, Porsche South Korea, Porsche Taiwan, and Porsche Japan.
Further information SASB index
435
↑↓ ↑ 0 |||
37,637
18.0
18.0
%
€ million
2021
2022'
2023
436
Automotive EBITDA²
Automotive return on sales
Profit after tax
Profit before tax
Operating profit
Other financial performance indicators
Porsche AG Group
78.01
Automotive net cash flow margin
Automotive BEV share
Most important key performance indicators
Porsche AG Group
KEY FINANCIAL FIGURES
The development process takes into account Directive 2000/53/EC on end-of-life vehicles,
which requires at least 85% of the vehicle weight to be reusable and/or recyclable and at least
95% to be reusable and/or recyclable.
As a strategy field, the circular economy plays an important role in product development at
Porsche AG. Porsche AG and selected subsidiaries are striving to use raw materials responsibly
and sparingly. Porsche AG has therefore set targets relating to the use of circular materials.
These apply to selected, newly developed, purely battery electric vehicle projects. Additionally,
aspects of the circular economy are increasingly being integrated into the preliminary
development of vehicles. For example, projects are running in order to use more sustainable raw
materials and recycled materials in a variety of vehicle components.
Porsche AG and selected subsidiaries had a waste recycling rate of 99% in 2023. The waste
recycling rate encompasses thermal recycling.
With regard to the procurement of raw materials, all direct suppliers are expected to follow
the OECD Due Diligence Guidance for Responsible Supply Chains of Materials from Conflict-
Affected and High-Risk Areas. Additional due diligence measures for mica mining have been
implemented in high-risk countries; the processes on site are examined selectively by supply
chain auditors. Porsche AG is also an active member of the Responsible Mica Initiative. The
most significant findings and measures relating to high-risk raw materials are published in the
Responsible Raw Materials Report. The report on the activities of Porsche AG in 2023 is being
prepared and will be published shortly as part of the report of the Volkswagen Group.
With regard to the environmental impact of its supply chain, Porsche AG is planning to decar-
bonize with a view to achieving a balance-sheet CO2-neutral value chain for newly produced
vehicles by 2030. To accomplish this goal, all direct suppliers of Porsche AG with more than
100 employees at their production locations are obligated to introduce an environmental
management system certified under ISO 14001 or EMAS. Furthermore, all suppliers of vehicle
projects with all-electric series are obligated to shift their production lines to certified electric-
ity from renewable sources from the reporting year onwards. To support Porsche AG's goal of
a decarbonized supply chain, more than 80% of newly delivered vehicles are to be fully electric
by 2030-depending on customer demand and the development of electric mobility in the
individual regions of the world.
Response
Average recyclability of vehicles sold
TR-AU-440b.3
Weight of end of-life material recovered
Total amount of waste from
manufacturing, percentage recycled
TR-AU-440b.2
Material efficiency and recycling
TR-AU-440b.1
Topic/Code/Requirement
Sales revenue
Return on sales
Automotive segment
Automotive EBITDA margin
Internal combustion engines
21.99
70,426
DISCLOSE SCOPE 1, SCOPE 2, AND, IF
APPROPRIATE, SCOPE 3 GREENHOUSE GAS (GHG)
EMISSIONS, AND THE RELATED RISKS:
In particular, "DKI" (Decarbonization Index) and "BEV share" (the
share of battery electric vehicles) are two key figures of great
strategic relevance to decarbonization. → Climate protection
Porsche AG sees the decarbonization of its value chain not
only as a strategic mission, but also as a financial opportunity.
Effective decarbonization requires a strict control mechanism.
Therefore, Porsche AG works with an internal (e.g. in its vehicle
projects) CO₂ target control system that continuously measures
the CO2 emissions of its vehicle projects and evaluates and
decides on measures designed to reduce these emissions in the
development process on the basis of marginal costs [€/tCO2].
The necessary financial resources to accomplish decarboniza-
tion targets are set aside in the strategic budget. → Stakeholder
dialog and materiality
DISCLOSE THE METRICS USED BY PORSCHE
AG TO ASSESS CLIMATE-RELATED RISKS AND
OPPORTUNITIES IN LINE WITH ITS STRATEGY
AND RISK MANAGEMENT PROCESS:
By definition, all of the processes for identifying, assessing,
managing, and monitoring climate-related risks are part of
Porsche AG's risk management. Consequently, Porsche AG is
taking the approach of an integrated management system.
Porsche AG deliberately views ESG risks as risks, which means
that there is no differentiation between general risk manage-
ment and the management of climate-related risks.
DESCRIBE HOW PROCESSES FOR IDENTIFYING,
ASSESSING, AND MANAGING CLIMATE-RELATED
RISKS ARE INTEGRATED INTO PORSCHE AG'S
OVERALL RISK MANAGEMENT:
Depending on the content, climate-related risks are addressed
by the relevant department in whose field of responsibility they
arise, with risk management measures then being defined and
implemented.
DESCRIBE PORSCHE AG'S PROCESSES FOR
MANAGING CLIMATE-RELATED RISKS:
All departments at Porsche AG are directly linked to the risk
management system, as are selected subsidiaries of the
Porsche AG Group. Consequently, the latter can (and are
obligated to) identify and document negative deviations from
a planned value (i.e. risks). This happens through the pro-
cesses of the risk management system: risk identification, risk
assessment, risk control, and risk monitoring. → Report on risks and
opportunities
Porsche AG takes an integrated approach to risk management.
As such, it also includes the management of climate-related
risks. ESG risks-the risks identified by risk management in
coordination with the sustainability strategy-are not treated
differently compared to other risks.
DESCRIBE PORSCHE AG'S PROCESSES FOR
IDENTIFYING AND ASSESSING CLIMATE-
RELATED RISKS:
Porsche AG will analyze and address the physical and transitory
impacts of climate change through its strategy.
DESCRIBE THE RESILIENCE OF THE COMPANY'S
STRATEGY AGAINST DIFFERENT CLIMATE-RE-
LATED SCENARIOS, INCLUDING A 2°C OR LOWER
SCENARIO:
More information about climate-related risks and opportunities
is available under → Climate change mitigation, → Energy and adapting to
climate change, → Nonfinancial key figures.
Greenhouse gas emission data are disclosed under → Nonfinancial
key figures, → Climate change mitigation.
Details about the impacts of climate-related risks and oppor-
tunities on strategy, business operations, and financial planning
are available under → Sustainability management and organization, → Stake-
holder dialog and materiality.
A materiality assessment was conducted for Porsche AG in the
2023 reporting year. The analysis covered sustainability-related
topics and evaluated their inherent risks and opportunities
based on the principle of double materiality—that is, it factored
in the impact of business activities on people and the envi-
ronment ("inside-out") as well as the influence of social and
environmental matters on the Porsche AG Group ("outside-in").
→ Stakeholder dialog and materiality
DESCRIBE THE IMPACT OF CLIMATE-RELATED
RISKS AND OPPORTUNITIES ON PORSCHE
AG'S BUSINESSES, STRATEGY, AND FINANCIAL
PLANNING:
The financial assessment of transitory and physical climate
risks follows the methodology of the greater risk management
system.
These risks and the corresponding risk control measures are
reviewed regularly and updated, if necessary, by interdisci-
plinary teams consisting of risk managers and the relevant
departments.
- Market and demand-based transitory climate risk
- Technological transitory climate risk
The following transitory risks have been identified for
Porsche AG by the project:
The risk inventory also continues to contain transitory climate
risks. This term denotes risks that arise during the transition to a
lower-carbon economy.
Transitory climate risks
↑↓ ↑ 0 |||
432
↑↓ ↑ ||
UAE
431
The analysis differentiates between short-term (for the current
financial year), medium-term (for the current and three subse-
quent financial years), and long-term or strategic climate-re-
lated risks and opportunities.
33,138
16.0
DESCRIBE THE TARGETS USED BY PORSCHE
AG TO MANAGE CLIMATE-RELATED RISKS AND
OPPORTUNITIES AND PERFORMANCE AGAINST
TARGETS:
→ Strategy field Decarbonization
Electrified vehicles (EV)
9.18
29,403
Plug-in hybrid vehicles (PHEV)
0
0
Hybrid vehicles'
12.81
41,023
Zero-emission vehicles (ZEV)
Worldwide
%
Number
2023
The management of sustainability targets also includes topics
which are of relevance to climate-related risks and opportuni-
ties. This is available in the following sections:
Porsche AG and selected subsidiaries are part of the emissions pools of the Volkswagen Group
or are assessed separately in selected subsidiaries.
Number of (1) zero-emission vehicles
sold, (2) hybrid vehicles sold, and (3)
plug-in hybrid vehicles sold
Sales-weighted average passenger fleet
fuel economy, by region
TR-AU-410a.2
Fuel economy and use-phase emissions
TR-AU-410a.1
Topic/Code/Requirement
Response
Topic/Code/Requirement
SASB INDEX
434
433
Further information TCFD index
→ Energy and adapting to climate change
→ Climate change mitigation
→ Sustainability management and organization
→ Strategy field Governance and Transparency
Response
%
249,795
25.2
321,321
Vehicles
301,915
309,884
320,221
Vehicles
Employees 10
Production
Deliveries
Other non-financial performance indicators
21.2
20.5
19.6
%
300,081
Financial services return on equity before tax?
10.3
8.8
%
Financial services return on sales
313
341
302
€ million
Financial services operating profit
Financial services segment
21.3
25.0
24.7
%
10.0
Number
42,140
39,162
2022'
2023
25.7
of the Porsche AG Group for the period from January 1 to December 31, 2023
Value added statement
Percentage
Total tax
payments
€ million
€ million
€ million
Percentage
Total tax
expenditure
Deferred taxes
€ million
Income tax
expenditure after
consolidation
€ million
€ million
Profit before tax
under IFRS after
consolidation
Overview of the profit before tax, tax expenditure, and tax payments per country of the fully consolidated companies
of the Porsche AG Group
36,996
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Notes to the consolidated financial statements - Effects of new or amended IFRS).
Automotive operating profit before depreciation/amortization and changes in value of property, plant and equipment, capitalized development costs and other
intangible assets in the automotive segment.
3 Total of cash and cash equivalents, securities, loans and time deposits net of third-party borrowings in the automotive segment.
4 Research costs, non-capitalizable development costs and investments in development costs that have to be capitalized in the automotive segment.
5
Additions (cost) to intangible assets (excluding capitalized development costs) and property, plant and equipment (excluding right-of-use assets) in the automotive
segment.
Automotive return on investment
6 Operating profit after tax in relation to the average invested capital, each relating to the automotive segment.
8 Number of vehicles handed over to end customers.
⁹2021 incl. 16,953 vehicles not yet eligible for registration at the time of factory delivery due to the semiconductor shortage.
10 Value as of the reporting date.
Further information Key financial figures
437
438
Profit before tax in relation to average equity tied up in the financial services segment.
1,378
336,280
1,642
6,938
€ million
Automotive operating profit
4.42/4.43
5.44/5.45
5.66/5.67
€
Earnings per ordinary share/preferred share
Automotive segment
4,038
4,967
5,157
€ million
5,729
7,081
7,375
€ million
5,314
6,772
7,284
€ million
||| ơ V12
13.7
11.3
12.8
%
12.1
11.2
10.6
24.5
6,425
5,033
%
18.6
%
1,964
€ million
Automotive capital expenditure
2,417
2,651
2,834
€ million
Automotive research and development costs*
8,282
7,215
€ million
Automotive net liquidity³
7,010
7,855
4,970
€ million
18.6
8,256
€ million
9,594
8,726
7,420
16.6
€ million
3,973
3,866
3,676
Automotive net cash flow
Automotive cash flow from operating activities
433,289
347,832
2 Locations in Stuttgart-Zuffenhausen and Leipzig.
³ Around 99% of the electrical energy is TÜV-certified green electricity. The remainder relates to the acquisition of new buildings and to existing gray electricity
contracts, which were fully transitioned to green electricity on January 1, 2024.
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
5 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Total²
Gas
318,524
374,632
244,857
297,836
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Production sites³
3,582
2,292
1,959
58,795
1,785
138,830
2,487
13,914
12,983
2,922
13,380
10,911
11,747
3,615
7,989
8,165
District heating
5,574
209,908
65,163
Energy consumption within the organization'
61,949
56,761
72
Gas
363,871
256,210
Primary energy consumption from renewable sources²
Secondary energy consumption from renewable sources³
Air conditioning
69,891
61,087
56,609
59,266
Development sites*
2,046
15,323
40,864
Heating oil
72,811
Of which biomethane
134,694
204,844
269,750
MWh
2023
272,976
2022
Combustible gas for manufacturing processes
65,163
72,605
72,811
Of which combustible biomethane gas for manufacturing processes
72,605
2021
57,056
2022
77,224
851,880
800,799
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
732,555
2021
2022
2023
Total
MWh
MWh
Indirect energy consumption by primary energy source'
Total energy consumption¹.2,3
ENVIRONMENTAL AND ENERGY KEY FIGURES
NONFINANCIAL KEY FIGURES
440
2021
m³
Of which fresh water (≤1,000 mg/l total dissolved solids (TDS))
Of which other water (> 1,000 mg/l total dissolved solids (TDS))
'Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Total withdrawal
69,697
2021
2023
2021
2 Locations in the 2023 reporting year: Stuttgart-Zuffenhausen, Leipzig, Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim,
and Friolzheim, and the locations in Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Stuttgart-Zuffenhausen, Leipzig, Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim, and the locations in
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
2022
Hazardous waste for removal'
The annual figures are based on a projection of the actual values recorded for January to October.
2 The total removed waste contains the waste categories "Hazardous waste," "Nonhazardous waste," "Nonproduction-specific waste," and "Metallic waste."
3 Total of all waste for removal from the production sites, development sites, and other sites. All waste is removed outside of Porsche locations.
1,747
288
339
Waste directed to disposal
2023
74,662
³ Retroactive correction of the key figure (including fuel) for the 2022 reporting year.
Development sites*
Electrical energy³
72,755
51,372
46,021
33,427
43,527
39,263
47,405
237,283
252,748
254,870
332,182
338,032
335,702
418,591
426,167
414,031
District heating
District heating
Weissach CHP plant
Other sites
Electrical energy³
Direct energy consumption by primary energy source
MWh
2023
CHP plants and PV arrays
2022
2023
2022
2021
Total
Production sites²
Electrical energy³
2021
Electricity
0
332,692
362,523
73
381,690
kg/vehicle
Direct and indirect greenhouse gas emissions from vehicle production sites
442
↑↓ ↑ 0 |||
441
Further information Nonfinancial key figures
Locations in Stuttgart-Zuffenhausen and Leipzig.
2,673
2,439
2,216
Total
Contains no fuels from renewable sources. Conversion factor from liters to MWh: petrol corresponds to 8.72 kWh/l; diesel corresponds to 9.91 kWh/I.
Fuel for engine test stands; contains petrol and diesel.
* Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
2021
2022
2023
kWh/vehicle
Development sites*
.8
10,901
Other sites
0
11,904
0
Total²
10,934
0
2
'Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Total including CHP plant and fuel.
3 Locations in Stuttgart-Zuffenhausen and Leipzig.
Energy consumption of vehicle production sites'
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
5 Purchased energy products such as refrigeration or compressed air.
Locations in the 2023 reporting year: Stuttgart-Zuffenhausen, Leipzig, Weissach, Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the
2021 and 2022 reporting years: Stuttgart-Zuffenhausen, Leipzig, Weissach, Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
'Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
2 Locations in Stuttgart-Zuffenhausen, Leipzig, and Weissach.
Locations in Stuttgart-Zuffenhausen and Leipzig.
Direct (Scope 1) GHG emissions"
745,093
745,093
0
0
0
Leipzig
70
3
70
0
3
1,434
941
570
Stuttgart-Zuffenhausen
Production sites
Total
2021
t of CO₂ equivalent
Market-based energy indirect (Scope 2) GHG emissions'
2023
2022
2021
t of CO2 equivalent
2 The increase in the 2023 reporting year was due to the switch from natural gas to heating oil due to the gas shortages.
53
10
2023
2022
2021
2023
2022
26
362,883
14,081
3,147
2,325
Electricity generated internally²
194
2,329
470
Heating oil
302,290
321,310
314,934
Electricity generated externally from renewable energy³
0
1,736
1,963
Of which combustible biomethane gas for manufacturing processes
1,953
304,243
322,686
1,376
608
408,116
350,595
No data
368,996
Of which biomethane
54,391
53,507
47,341
65,555
315,542
Combustible gas for manufacturing processes
1,963
2,076
0
Of which from nonrenewable sources
Of which generated externally
2,604
59,004
Specialist energy products
Production sites3,8
14,508
13,226
Fuel'
35,841
42,503
46,663
Total energy from own vehicle operation²
0
0
265,696
220,376
195,680
1,424
2,038
2,920
64,752
72
73
0
Other sites
1,175
1,201
64,752
Gas
1,175
0
1,201
1,485
1,485
Electricity generated internally from renewable energy²
Energy from own vehicle operation (electrical energy)²
Heat²
47,341
59,004
Heating oil
793,416
793,416
30.0
758,443
Region: Germany
4,012
3,284
1,553
By region
Region: Germany
Region: Europe (excluding Germany)
315
225
180
37,207
34,558
33,089
Region: North America
243
173
110
10
Other regions (Australia, Latin America)
840
905
1,037
Region: North America
10,308
100
177
Region: Asia
1,695
2,073
2,234
Region: Europe (excluding Germany)
164
40
11,773
Other subsidiaries
By age
<30 years
30-50 years
> 50 years
By gender
Female
Male
Other'
4,757
3,886
1,955
2,029
1,927
810
2,558
1,866
1,076
170
93
By region
4,309
4,364
4,634
Porsche Leipzig GmbH
0
12,782
0
586
1,369
2,982
3,572
904
1,184
69
1
Total
12
1,341
> 50 years
Breakdown by gender (%)
Female
Male
Other'
Breakdown by region (%)
Region: Germany
Region: Europe (excluding Germany)
Region: North America
Region: Asia
42.7
49.6
41.4
53.7
48.0
55.1
3.6
79.4
84.5
84.4
0.0
0.0
0.0
30-50 years
70.0
75.1
Development sites²
23.3
24.9
3.5
2.4
76.7
Region: Asia
For reasons of data protection, only selected personnel and social key figures are disclosed.
0.0
1,308
1,098
Breakdown by age (%)
Other regions (Australia, Latin America)
321
318
274
<30 years
Number of employees by gender
Female
Male
Other¹
8,097
7,348
34,042
31,814
1
0.0
Other'
81.6
81.2
80.8
Male
0.0
18.4
19.2
Female
Breakdown of employees by gender (%)
0
6,808
30,188
0
18.8
758,443
6,425
7,461
185
811
The annual figures are based on a projection of the actual values recorded for January to October.
Waste from vehicle production sites'
kg/vehicle
Waste
Locations in Stuttgart-Zuffenhausen and Leipzig.
2023
2022
2021
3 Stuttgart-Zuffenhausen and Leipzig.
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
5 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Total consumption of water from all areas'
0.56
0.71
4.51
100,074
Leipzig
Stuttgart-Zuffenhausen
Production sites
Total
2021
109
2022
m³
Water withdrawal¹,2,3
2021
2022
2023
m³
2023
140,127
Total
5,743
0
0
0
2 Total water withdrawal of the production locations in Stuttgart-Zuffenhausen and Leipzig, the development locations in Weissach, Rutesheim, Hemmingen,
Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim, and the other locations in Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg for the
2023 reporting year. Plus the other locations in Freiberg and Weilimdorf for the 2021 and 2022 reporting years.
Water recirculation¹²
Total
35
79
916
'The annual figures are based on a projection of the actual values recorded for January to October.
m³
Nonhazardous waste for removal'
2023
2022
2021
Total
641,805
5,970
2,739
Other sites
2021
2022
2023
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Fresh water (≤ 1,000 mg/l total dissolved solids (TDS)] is only recirculated into areas with no water stress.
79,069
80,310
Development sites*
624,597
539,785
653,289
568,953
558,756
Production sites³
78,366
6,654
133,846
118,546
2.81
3.08
3.05
Further information Nonfinancial key figures
449
↑ ↓ ↑ 0 |||
450
PERSONNEL AND SOCIAL KEY FIGURES
Unless specified otherwise, the listed key figures relate to the Porsche AG Group.
Number and distribution of new employees
2023
2022
2021
Total workforce
2023
2022
2021
Of which at Weissach (including external locations)
15,954
16,371
17,263
Of which at Stuttgart-Zuffenhausen
22,379
2021
23,025
Porsche AG
By company
36,996
39,162
42,140
Total
24,724
81,831
2022
Locations in Stuttgart-Zuffenhausen and Leipzig.
112,454
55,328
63,078
72,510
26,503
55,468
39,944
Development sites²
18,243
21,581
21,392
Total
Of which water from third parties
745,093
741,879
793,416
790,471
758,443
756,783
Other sites³
Water consumption
m³/vehicle
Water consumption of vehicle production sites'
3 Total water withdrawal of the production locations in Stuttgart-Zuffenhausen and Leipzig, the development locations in Weissach, Rutesheim, Hemmingen,
Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim, and the other locations in Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg for the
2023 reporting year. Plus the other locations in Freiberg and Weilimdorf for the 2021 and 2022 reporting years.
3 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
2 Fresh water (≤ 1,000 mg/l total dissolved solids (TDS)] is only drawn from areas with no water stress.
2023
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
2 Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
2,945
3,214
Of which groundwater
0
0
0
1,660
193
0
398
40,271
79,325
27,574
9,464
11,376
12,620
51,647
91,945
Of which by plane
Of which by rail
Business trips²
Porsche's vehicle fleet'
Total
2021
2022
18,110
2023
Energy indirect (Scope 2) GHG emissions'
2021
2022
2023
t of CO2 equivalent
Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Other indirect GHG emissions (Scope 3)
5
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
³ The increase in the 2023 reporting year was due to the switch from natural gas to heating oil due to the gas shortages.
Ever since the 2021 reporting year, the reported GHG emissions (Scope 1) have also contained emissions from refrigerants and the burning of VOC.
² Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
3 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
270
218
t of CO₂ equivalent
0
0
0
2 Local energy mix 242 g CO₂/kWh.
The following emission factors are used for the key energy figures in this report: Natural gas 181.6 kg CO₂/MWh; heating oil 266.4 kg CO₂/MWh; electricity: 0 g/kWh
or 242/298 g CO₂/kWh; refrigerants (global warming potential (GWP]).
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
2,571
2,404
1,249
Other sites 2,5
13,660
14,376
13,856
Development sites24
32,389
33,643
Leipzig³
27,204
29,708
32,455
67,876
28,584
6,807
11,449
11,687
11,303
213
Total
84,832
80,131
69,727
63,351
75,824
59,593
Stuttgart-Zuffenhausen²
Production sites
Of which released directly
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
² Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
270
Total
58
132
184
122
45
442
Of which from refrigerants
Of which released directly
Development sites*
Of which from destroyed VOCs
Of which from refrigerants
14
579
551
Of which released directly
194
Development sites²
Leipzig
Stuttgart-Zuffenhausen
Production sites
Total
Material consumption of Porsche locations in Stuttgart-Zuffenhausen and Leipzig, and proportionately of the Volkswagen Group's production locations in Osnabrück
and Bratislava.
Production sites
2021
2023
74,716
80,821
86,458
Others
756
2022
Of which by rented car³
Stuttgart-Zuffenhausen
18,209
218
213
Other sites
898
466
494
1,236
877
588
Other sites³
3,663
4,358
3,406
4,959
5,108
4,093
Development sites²
13,160
9,090
13,528
7,175
2,895
12,351
Leipzig
6,419
1,177
756
194
3,900
4,825
4,561
2,701
The annual figures are based on the fuels reported for internal factory traffic, departmental and business travel, and test drives at the locations in Stuttgart-
Zuffenhausen, Leipzig, and Weissach. The conversion is based on known emission factors and the German energy mix (434 g CO₂/kWh from the German Environ-
ment Agency).
2 The metrics concerning planes and rented cars relate to the following companies in the 2023 reporting year: Porsche AG, MHP Management- und IT-Beratung GmbH,
Porsche Consulting GmbH, Porsche Asia Pacific Pte. Ltd., Porsche Engineering Services GmbH, and other selected subsidiaries with a relatively low contribution.
The metric encompasses all travel activity booked through framework contracts with external service providers (travel agencies and car hire companies]. It does not
contain isolated travel activity that was booked individually. Among other factors, the year-on-year increase in CO2 emissions in the 2023 reporting year was the result
of an increase in travel and higher aircraft emission factors.
3 The share of the metric attributable to MHP Management- und IT-Beratung GmbH for rented cars in the 2023 reporting year is partly based on monthly average
mileages.
³ Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
Total
* Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
SOx emissions'
2023
2022
2021
Production sites
Stuttgart-Zuffenhausen
Leipzig
Development sites³
Other sites*
0.26
0.19
0.27
0.23
0.16
'Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
0
0
0
0.05
0.03
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
The key figures refer exclusively to production processes, not to Porsche vehicles.
0.03
0.03
0.02
0.17
0.13
0.21
0.22
0.05
2 The key figures refer exclusively to production processes, not to Porsche vehicles.
2021
2023
6.6
17.85
Locations in Stuttgart-Zuffenhausen and Leipzig.
33.99
27.17
22.21
0.58
0.58
0.60
VOC
41.75
33.61
28.47
Leipzig
Stuttgart-Zuffenhausen
20.41
25.88
t
0.16
0.12
0.12
Other sites
7.60
2022
6.32
1,2
Dust emissions"
Development sites³
8.11
6.76
4.36
6.14
Other sites³
³ Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
Total
Alloys
180,040
170,413
157,965
Copper
19,302
17,146
15,998
Plastics
125,745
120,658
112,697
Production sites
Total
2021
2022
2023
3 Local energy mix 298 g CO₂/kWh.
Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
5 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Further information Nonfinancial key figures
443
↑↓ ↑ 0 |||
603,259
241,883
444
NOx emissions¹²
2023
2022
2021
VOC from vehicle production sites'
kg/vehicle
t
* Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
263,617
Steel/cast iron
Production sites
Stuttgart-Zuffenhausen
Leipzig
0.26
0.29
0.31
0.19
0.22
0.24
0.19
0.22
0.24
0
0
0
Development sites2
Other sites³
652,655
678,606
Total
2021
2022
2023
267,061
Material consumption of Porsche's vehicle production'
2 Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
t
0.07
0
0.07
0
0.07
0
Volatile organic compounds (VOC)'
137.75
129.40
123.29
Nonhazardous waste
Nonproduction-specific waste
8
4
22
0
0
8
0
210
Nonhazardous waste for recycling'
t
2023
2022
2021
Development sites²
Total
Nonhazardous waste
1,280
2,011
2,238
Hazardous waste
'The annual figures are based on a projection of the actual values recorded for January to October.
Hazardous waste
Waste for recycling
5,143
5,055
Total
8,480
10,378
10,398
5,272
1,821
Waste for removal
5,766
16
12
Leipzig
7,823
7,348
6,959
Hazardous waste for recycling'
Waste for recycling
Hazardous waste
2,336
2,348
2,331
t
2023
2022
2021
Nonhazardous waste
7,018
7,575
Total
876
1,105
1,511
The annual figures are based on a projection of the actual values recorded for January to October.
Metallic waste
174
114
Nonproduction-specific waste
3,651
3,717
3,846
79
174
1,782
Nonproduction-specific waste
2021
2022
2023
t of CO2 equivalent
158
570
104
Of which from refrigerants
Direct and indirect (Scope 1 and 2) GHG emissions'
1,954
5,114
11,653
Of which released directly
2,631
6,419
12,348
2,825
Other sites³
374
658
966
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
Total³
Of which from destroyed VOCs
Production sites
17,638
12,218
7,656
3 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
13,525
7,175
Stuttgart-Zuffenhausen
937
591
519
577
355
89
Metallic waste
389
882
2,196
Waste for removal
Hazardous waste
1
2
30
Nonhazardous waste
16
103
731
Nonproduction-specific waste
Leipzig
1,177
2022
2023
Fresh water withdrawal¹.2
Waste for removal¹,2,3
734
t
↑↓ ↑ 0 |||
Further information Nonfinancial key figures
447
9
8
13
448
283
Nonproduction-specific waste
82
23,869
22,874
21,755
Total
615
712
340
18,199
17,018
16,143
Waste for recycling
Hazardous waste
5,333
5,001
4,481
Nonhazardous waste
8,026
Metallic waste
Nonproduction-specific waste
Nonhazardous waste
Hazardous waste
Waste for recycling
705
2,604
Other sites³
3,031
Metallic waste
806
1,470
Nonproduction-specific waste
7,376
8,005
3,060
Waste for removal
t
2022
137.75
129.40
123.29
55.65
53.84
52.81
82.10
75.56
70.48
0
0
0
0
0
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
2 Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
3 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations i the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
2023
Total
Production sites
Total
t
2021
2021
2022
Waste by location, type, and disposal method' (Fortsetzung]
Waste by location, type, and disposal method'
446
↑↓ ↑ 0 |||
445
Further information Nonfinancial key figures
2023
80
Hazardous waste
6
Hazardous waste
2,997
2,653
2,149
Nonhazardous waste
4,180
4,288
3,725
2023
2022
2021
Nonproduction-specific waste
1,356
632
625
Metallic waste
1,549
93
Nonhazardous waste
The annual figures are based on a projection of the actual values recorded for January to October.
2 The total recycled waste contains the waste categories "Hazardous waste," "Nonhazardous waste," "Nonproduction-specific waste," and "Metallic waste."
3 Total of all waste for recycling from the production sites, development sites, and other sites. All waste is recycled outside of Porsche locations.
864
73
26
Waste for recycling1,2,3
Hazardous waste
20,008
22,586
23,530
Waste diverted from disposal
1,728
1,926
Waste for removal
4
Waste for recycling
9,670
5
550
590
167
12
79
124
49
37
44
0
0
0
Waste for removal
The annual figures are based on a projection of the actual values recorded for January to October.
Hazardous waste
34
10,375
Stuttgart-Zuffenhausen
12
16
183
Nonproduction-specific waste
9,183
3 Locations in the 2023 reporting year: Korntal-Münchingen, Sachsenheim, Asperg, and Ludwigsburg. Locations in the 2021 and 2022 reporting years:
Korntal-Münchingen, Sachsenheim, Freiberg, Asperg, Weilimdorf, and Ludwigsburg.
80
82
93
Nonhazardous waste
885
77
² Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
5.8
37,272
5.1
10.9
19.2
16.1
10.5
32.9
18.4
14.4
17.0
12.4
10.6
15.0
11.5
10.5
18.8
15.7
10.3
32.4
14.5
11.8
19.2
20.2
11.8
19.9
14.4
12.9
1.4
1.3
1
Adjustment to the methodology of information acquisition in 2023. For the first time, in addition to terminations by employees, the disclosures now contain termina-
tions by the employer, retirement, and the death of employees.
For the 2023 reporting year: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Consulting GmbH,
Porsche Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH. For the 2022 and 2021
reporting years: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Lifestyle GmbH & Co. KG, Porsche
Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH.
17.2
13.1
11.4
21.0
14.1
13.4
20.9
15.0
14.8
21.4
14.8
10.0
21.0
10.3
9.3
16.5
11.0
0.4
19.2
20.3
33.0
28.0
30.9
27.0
Female
Porsche AG
64.9
55.5
Porsche Leipzig GmbH
36.0
25.0
Other subsidiaries'
24.2
22.9
Male
22.2
22.7
47.2
33.0
24.2
17.4
23.5
19.6
25.2
Porsche Leipzig GmbH
47.7
35.7
21.6
13.9
21.7
16.5
Further information Nonfinancial key figures
457
↑ ↓ ↑ |||
458
Average number of training hours for management qualification
2023
2022
Employees who participated in advanced training
Total
Female
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
Male
Porsche AG
Other subsidiaries¹
Other regions (Australia, Latin America)
6.2
6.1
1,326
805
654
Region: Europe (excluding Germany)
134
135
85
Region: North America
100
113
89
Region: Asia
102
69
56
Other regions (Australia, Latin America)
6
16
12
Breakdown by age (%)
<30 years
Region: Germany
30-50 years
Total
815
22.1
11.8
378
313
246
1
874
The disclosure contains all donations made by Porsche AG as well as donations of more than €5,000 made by fully consolidated subsidiaries.
756
595
416
69
55
Average hours of training per year per employee
437
323
254
2023
2022
2021
1,231
642
> 50 years
Breakdown by gender (%)
Female
Employees subject to wage agreements
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
Employees exempt from wage agreements and executive employees
79.5
70.7
73.0
Porsche AG
Region: Europe (excluding Germany)
8.0
11.8
9.5
Porsche Leipzig GmbH
Region: North America
6.0
10.0
10.0
Other subsidiaries'
Region: Asia
6.1
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Male
Male
Breakdown by region (%)
Region: Germany
22.7
27.5
27.5
52.4
66.4
66.4
24.9
For the 2023 reporting year: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Consulting GmbH,
Porsche Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH. For the 2022 and 2021
reporting years: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Lifestyle GmbH & Co. KG, Porsche
Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH.
6.1
26.2
28.4
28.4
73.8
71.6
71.6
Female
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
6.1
11.7
Porsche AG
Other subsidiaries'
Porsche Leipzig GmbH
63,040
62,253
43,184
Other subsidiaries'
20,004
14,631
8,496
Employees exempt from wage agreements and executive employees
37,015
29,799
29,736
Porsche AG
31,095
25,886
26,903
Total number of employees who returned to work after parental leave²
Female employees who returned to work after parental leave
Male employees who returned to work after parental leave
1,713
1,580
1,434
360
1,184
317
1,351
350
2021
Other subsidiaries'
16,430
11,163
6,715
Total number of employees who took parental leave'
Employees subject to wage agreements
269,238
213,193
180,875
Porsche AG
186,194
136,309
129,195
Female employees who took parental leave
Male employees who took parental leave
2,186
2,025
1,534
767
674
1,419
2022
268
1,263
Total number of returning employees who are still employed after 12 months²
Proportion of female employees who are still employed after 12 months
Proportion of male employees who are still employed after 12 months
Proportion of returning female employees who are still employed after 12 months (%)
Proportion of returning male employees who are still employed after 12 months (%)
'The total number of employees entitled to parental leave cannot be determined because employees are not obligated to report a birth. The year for which the parental
leave is recorded is the year in which the period of leave begins.
1,724
1,752
1,278
344
591
223
1,380
1,161
1,055
20.0
33.7
17.5
80.0
66.3
82.5
2 Due to the relatively long duration of parental leave or as a result of leave commencing late in the respective reporting year, not all employees have returned by the
time of data collection. The return to work and retention rate cannot be calculated on an annual basis as employees who returned in a given year did not necessarily
also begin their parental leave in that same calendar year.
Further information Nonfinancial key figures
459
↑↓ ↑ 0 |||
9.2
For the 2023 reporting year: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Consulting GmbH,
Porsche Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH. For the 2022 and 2021
reporting years: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Lifestyle GmbH & Co. KG, Porsche
Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH.
1,353
48,890
74,648
1,166
Porsche Leipzig GmbH
2,432
1,895
1,148
Other subsidiaries'
3,488
2,018
1,685
Proportion of female employees who returned to work after parental leave (%)
Proportion of male employees who returned to work after parental leave (%)
21.0
20.0
18.7
79.0
80.0
81.3
Digital formats
231,605
191,875
161,721
Offline formats
51,117
2023
40,484
58,343
352
349
908
724
662
25,234
23,317
21,117
19,320
18,300
16,253
4,074
3,803
3,797
1,840
1,214
1,085
27,277
25,064
22,759
20,629
377
19,273
3,188
3,615
Employees subject to wage agreements
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
Number of participants in advanced training
2023
2022
2021
Employees exempt from wage agreements and executive employees
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
2023
2022
2021
30,134
27,646
25,316
4,900
4,329
4,199
3,253
17,151
4,361
4,079
56,674
40,704
210,611
39,327
43,291
29,413
32,013
'For the 2023 reporting year: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Consulting GmbH,
Porsche Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH. For the 2022 and 2021
reporting years: Porsche Deutschland GmbH, Porsche Engineering Services GmbH und Porsche Engineering Group GmbH, Porsche Lifestyle GmbH & Co. KG, Porsche
Financial Services GmbH, Porsche Dienstleistungs GmbH, Porsche Digital GmbH, and Porsche Niederlassung Stuttgart GmbH.
6,321
5,805
3,848
7,062
5,486
3,466
249,579
202,288
171,284
Parental leave and return to the workplace
173,998
132,782
124,085
59,151
242,992
306,253
Porsche Leipzig GmbH
Porsche AG
4,073
2,287
1,712
1,535
2,857
2,582
2,557
2,306
2,280
2,272
Porsche Leipzig GmbH
90
73
461
226
212
Total
Female
Porsche AG
Porsche Leipzig GmbH
Other subsidiaries'
Male
76
Total
Total
2022
0
Female
Male
Other'
1,982
1,753
1,595
911
721
1,104
0
0
0
Breakdown of employees by gender (%)
Breakdown of employees by gender (%)
Female
15.6
15.3
15.2
Female
68.5
0
Male
1
31,093
2,513
150
154
177
2
4
0
14
21
4
11
8
5
Number of employees by gender
Number of employees by gender
Female
Male
Other'
6,115
5,595
33,131
5,213
29,084
2,287
84.4
84.8
2021
38,952
36,095
33,981
Porsche AG
22,313
20,879
20,117
Of which at Stuttgart-Zuffenhausen
14,915
14,277
13,764
Of which at Weissach (including external locations)
7,398
6,602
6,353
Porsche Leipzig GmbH
4,580
4,299
4,240
Other subsidiaries
2022
84.7
2023
Total
Male
31.5
Other'
0.0
0.0
0.0
Other'
0.0
550
70.9
59.1
29.1
0.0
40.9
0.0
For reasons of data protection, only selected personnel and social key figures are disclosed.
1 For reasons of data protection, only selected personnel and social key figures are disclosed.
Further information Nonfinancial key figures
453
↑ ↓ ↑ 0 |||
454
Permanent employees
By company
2,716
Other regions (Australia, Latin America)
269
23,211
21,761
21,217
Of which at Stuttgart-Zuffenhausen
16,241
15,509
15,168
Of which at Weissach (including external locations)
6,970
6,252
6,049
Porsche Leipzig GmbH
4,406
4,185
3,737
Other subsidiaries
11,630
10,742
9,343
By region
Part-time employees
Porsche AG
Total
By company
36,688
2021
4.5
5.6
3.7
4.2
5.1
Other regions (Australia, Latin America)
0.2
1.0
0.6
For reasons of data protection, only selected personnel and social key figures are disclosed.
Further information Nonfinancial key figures
451
↑↓ ↑ |||
452
Full-time employees
Total
2023
2022
2021
39,247
34,297
By company
2023
2022
32,271
30,576
Region: Germany
Region: Europe (excluding Germany)
2,084
1,919
1,518
Region: Europe (excluding Germany)
Region: North America
1,035
901
840
Region: North America
Region: Asia
1,327
1,287
1,094
Region: Asia
Other regions (Australia, Latin America)
310
310
34,491
By region
965
1,031
2021
2,893
2,474
2,699
Porsche AG
1,513
1,264
1,162
Of which at Stuttgart-Zuffenhausen
1,022
12,059
862
Of which at Weissach (including external locations)
491
402
456
Porsche Leipzig GmbH
228
179
572
Other subsidiaries
1,152
706
10,917
Region: Germany
By region
%
2023
2022
2021
Workers who are not employees but whose work and/or workplace is controlled by
the organization
3,348
3,283
2,937
Governance bodies by gender
Female
12.5
14.3
14.3
87.5
85.7
85.7
Male
Proportion of governance bodies by age group
Employee turnover'
<30 years
2023
2022
2021
2021
2022
Diversity and equal opportunity
15.4
81.0
81.4
0.0
0.0
Male
Other'
84.6
0.0
460
16.1
16.1
83.9
0.0
83.9
0.0
For reasons of data protection, only selected personnel and social key figures are disclosed.
1 For reasons of data protection, only selected personnel and social key figures are disclosed.
455
Further information Nonfinancial key figures
↑↓ ↑ 0 |||
456
External employment
2023
Female
30-50 years
> 50 years
64.0
63.5
60.0
17.7
17.9
17.9
Total
By age
<30 years
30-50 years
> 50 years
By gender
Female
Male
By region
1,668
1,138
896
9,624
2023
€ million
22.1
%
18.6
Donations made by the Porsche AG Group'
0.0
0.0
0.0
12.5
0.0
0.0
87.5
100.0
Proportion of employees who left the company.
4.3
2.9
2.4
'Adjustment to the methodology of information acquisition in 2023. For the first time, in addition to terminations by employees, the disclosures now contain termina-
tions by the employer, retirement, and the death of employees.
Total number and breakdown of employee turnover'
2023
2022
2021
Employees by age group
<30 years
30-50 years
>50 years
18.3
18.6
100.0
550
856
684
By region
Region: Germany
34,543
32,135
30,548
Region: Germany
2,664
2,423
2,541
Region: Europe (excluding Germany)
2,164
1,954
1,641
Region: Europe (excluding Germany)
70
119
54
Region: North America
1,037
723
Other subsidiaries
69
65
Total
By company
Porsche AG
Temporary workers
19.0
2023
2022
2021
3,188
3,067
3,015
905
2,411
2,262
Of which at Stuttgart-Zuffenhausen
2,348
2,094
2,220
Of which at Weissach (including external locations)
63
52
42
54
2,146
840
Porsche Leipzig GmbH
0
27,658
0
Number of employees by gender
Female
Male
Other'
490
494
2,697
485
2,530
1
0
0
Breakdown of employees by gender (%)
Breakdown of employees by gender (%)
Female
19.5
0.0
Region: North America
Male
80.5
Other'
6,323
6,854
29,241
0
2,573
Other'
0
889
793
7,607
31,345
0
683
Region: Asia
452
515
415
Other regions (Australia, Latin America)
319
Region: Asia
308
269
Other regions (Australia, Latin America)
2
10
5
Number of employees by gender
0
Male
Female
911
911 Carrera
911 Carrera T
283
10.8-10.3
385
10.9-10.3
245-233
283
For further information on the differences between the WLTP
and NEDC, please visit https://www.porsche.com/wltp.
247-233
385
368
In cases where the figures are specified as value ranges, these
do not refer to a particular individual vehicle and do not con-
stitute part of the sales offering. They are intended exclusively
All new vehicles offered by Porsche are type-approved
according to the WLTP. The NEFC figures stated up to Decem-
ber 31, 2022, are therefore derived from the WLTP figures.
Official NEDC values derived from the WLTP values are no longer
available for new vehicles after January 1, 2023, and cannot
therefore be reported.
247-230
299
13.2
500
718 Cayman GT4 RS
10.9-10.1
400
294
10.3-9.6
911 Carrera Cabriolet
718 Cayman GTS 4.0
219-202
235-217
as a means of comparison between different vehicle types.
Additional equipment and accessories (attachments, different
tire formats, etc.) may change the relevant vehicle parameters,
such as weight, rolling resistance, and aerodynamics, and, in
conjunction with weather and traffic conditions and individual.
driving style, may affect fuel/power consumption, CO2 emis-
sions, range, and the performance figures for the vehicle.
283
450
10.8-10.4
911 Carrera 4S Cabriolet
331
350
253-231
11.1-10.2
450
331
911 Carrera 4S
250-233
11.0-10.3
331
911 Carrera S Cabriolet
251-229
385
11.1-10.1
331
911 Carrera S
246-237
10.8-10.5
385
283
911 Carrera 4 Cabriolet
247-234
10.9-10.3
385
283
911 Carrera 4
245-236
450
257
97.0
9.7-8.9
For nonproduction material
100.0
100.0
100.0
For production material
99.2
99.0
97.4
Share of local direct suppliers of nonproduction material from the EU²
Based on procurement volume.
96.4
95.2
91.1
96.0
93.0
Share of local direct suppliers from the EU in the total procurement volume'
Share of local direct suppliers of production material from the EU²
2021
2022
2023
2021
2022
2023
1,360
1,766
1,751
2,225
1,249
450
1,396
23.0
35.5
31.7
Based on direct suppliers awarded contracts through the central procurement systems.
300
220
718 Cayman Style Edition
220-201
9.7-8.9
300
220
718 Cayman
718 Cayman
[g/km]
[1/100 km]
[PS]
[kW]
718 Cayman S
CO₂ emissions
combined
Power
output
Fuel consumption
Power
WLTP
Model
Internal combustion engine vehicles
EMISSION AND CONSUMPTION INFORMATION
464
463
↑↓ ↑ 0 |||
Further information Nonfinancial key figures
2 Based on the total number of direct suppliers.
combined
11.1-10.4
510
911 Targa 4
500
368
718 Spyder RS
294-293
13.0-12.9
510
375
911 GT3
247-230
10.9-10.1
400
294
718 Boxster GTS 4.0
284-275
12.5-12.1
650
478
911 Turbo S Cabriolet
235-218
10.4-9.6
350
257
718 Boxster S
278-271
12.3-12.0
650
478
13.0
294
911 GT3 with Touring Package (PDK)
375
2021
[PS]
Power
Power
output
[kW]
Model
Internal combustion engine vehicles
466
↑↓ ↑ 0 |||
465
Further information Emission and consumption information
As of February 22, 2024. Current consumption values can be found at https://www.porsche.com/international/fuel-consumption.
313
13.8
911 Turbo S
525
911 S/T
256
11.3
480
353
911 Dakar
305
13.4
525
386
911 GT3 RS
293-292
12.9
386
220-203
9.7-9.0
300
911 Carrera 4 GTS
CO₂ emissions
combined
[g/km]
combined
[1/100 km]
Fuel consumption
Power
[PS]
Power
output
[kW]
Model
256-239
11.3-10.5
480
353
911 Carrera GTS Cabriolet
258-236
353
11.4-10.4
353
911 Carrera GTS
WLTP
252-236
11.1-10.4
450
331
911 Targa 4S
Internal combustion engine vehicles
247-238
10.9-10.5
385
283
480
252-235
480
259-240
220
718 Boxster Style Edition
284-275
12.5-12.1
580
427
911 Turbo Cabriolet
220-201
9.7-8.9
300
220
718 Boxster
279-271
11.4-10.6
12.3-12.0
427
911 Turbo
718 Boxster
257-245
11.3-10.8
480
353
911 Targa 4 GTS
256-244
11.3-10.8
480
353
911 Carrera 4 GTS Cabriolet
580
2022
100
100.0
100.0
85
81
Male union employees
Fatalities
15
15
19
Female union employees
Lost days³
93
82
0
Accidents²
7
18
0
Porsche Leipzig GmbH
87
85
81
Fatalities
13
15
19
Lost days³
Porsche AG
Accidents²
Fatalities
85
Basic annual remuneration based on monthly salary for Dec. 2023, direct remuneration as the sum of basic annual remuneration, variable remuneration, plus fixed and
variable special payments.
Consideration of all Porsche AG employees in Germany (excluding part-time retirees and employees with diverse assignments), evaluation date 12/2023.
3 In particular, the gender pay gap in favor of women is due to the distribution of men and women across the various hierarchical levels, with 51% (previous year: 52%) of
all employed men being in the lower collectively agreed pay scales (including incentive wage earners), compared to just 23% for women (previous year: 24%).
No employees aged <30 years were not covered by a collective bargaining agreement.
Total injury rate (%)
Porsche AG
2 As there was no internal connection between identified instances of discrimination, it was not necessary to take steps beyond each individual case of disciplinary
action.
1 Porsche AG
0
0
1
6
7
7
4
0
0
1
0
Lost days³
0
6
7
11
2021
2022
2023
Number of discrimination reports that resulted in a first written warning
Number of discrimination reports that resulted in a second written warning
Number of discrimination reports that resulted in other disciplinary action
Number of discrimination reports that resulted in termination
Total
Disciplinary action due to cases of discrimination"
1,2
Total accident severity
Porsche Leipzig GmbH
2
2023
Accidents²
107
0
5
5
0
Stoppages'
Lost days
2021
2022
2023
Stoppages and lost days
> 50 years
30-50 years
<30 years
11.6
11.6
11.5
88.4
88.4
88.5
2021
2022
2023
%
Comparison of the basic annual and direct remuneration of women and men in 20231,2,3
Employees exempt from wage agreements and executive employees
Employees subject to wage agreements
%
Employees by type of employment at Porsche AG and selected national subsidiaries
460
14
15
1 The right to strike for the purposes of collective bargaining is enshrined in the freedom of association provided by article 9, paragraph 3, of Germany's Basic Law
(Grundgesetz). In the 2023 reporting year, there were stoppages lasting a number of hours in connection with IG Metall demonstrations as part of the automotive
trade's 2023 round of collective bargaining in sections of the locations in Germany (Porsche Niederlassung Hamburg GmbH, Porsche Niederlassung Stuttgart GmbH,
Porsche Niederlassung Berlin GmbH, and Porsche Niederlassung Berlin-Potsdam GmbH).
Accidents, lost days, and fatalities1
107
98
112
115
102
WLTP
0
100
99
0
82
108
107
97
87
115
Male nonunion employees*
Female nonunion employees*
Men total
Women total
Proportions per age group
Direct remuneration for union employees
Basic annual remuneration for union employees
Direct remuneration for nonunion employees*
Basic annual remuneration for nonunion employees*
Total direct remuneration
Total basic annual remuneration
Remuneration of women compared to men
112
2022
2021
186
2022
2023
Proportion of direct suppliers of Porsche AG where considerable actual and potential negative sustainability impacts were
identified and improvements were agreed as a result of the assessment'
8
2
4
2
30
2021
2022
2023
Based on an estimated sustainability rating (S-rating).
1
439
560
687
For nonproduction material
For production material
2021
2022
2023
Direct suppliers of Porsche AG where considerable actual and potential negative sustainability impacts were
identified'
%
Direct suppliers of Porsche AG audited on the basis of sustainability criteria'
2 No S-rating audits of direct suppliers of nonproduction materials were conducted in 2023.
Based on an estimated sustainability rating (S-rating).
For nonproduction material²
2021
%
93.2
96
93.2
100.0
100.0
100.0
100.0
2021
2022
2023
%
Structure of direct suppliers of Porsche AG
Based on an estimated sustainability rating (S-rating).
For nonproduction material
20
57
17
0
14
For production material
5
Direct suppliers of Porsche AG audited on the basis of sustainability criteria'
Based on an estimated sustainability rating (S-rating).
For nonproduction material
For production material
2021
2022
2023
4
7
8
no data
96
no data
For production material
Number of audits of new direct suppliers of Porsche AG based on sustainability criteria'
Number of centralized compliance monitoring operations conducted
Number of subsidiaries covered by the Code of Conduct
505
1.7
5.0
4.5
0
0
0
197
224
98
18
19
11
4.4
185
1,767
0
0
2,009
1,568
152
175
0
0
0
1,964
2,233
1,666
203
171
0
2023
5.2
5.7
Proportionate scope in subsidiaries (%)
Operations of the Porsche AG Group assessed for significant risks
Digital training module on the sustainability rating (S-rating) in the process of awarding contracts (cumulative).
Number of trained employees
Internal sustainability training of Procurement employees at Porsche AG¹
KEY GOVERNANCE FIGURES
462
↑↓ ↑ 0 |||
461
Further information Nonfinancial key figures
5 Severity of accidents: provides information on many lost days have occurred due to occupational accidents relative to the total of all hours worked. The calculation
formula used as the basis is the number of lost working days due to occupational accidents times one million hours.
Injury rate = accident frequency index: provides information on how frequently accidents have occurred within the company relative to the total of all hours worked.
The calculation formula used as the basis is the number of work-related accidents times one million hours, divided by actual hours worked.
3 Missed working days resulting from accidents reported in the reporting period are counted as lost days (usually Monday to Friday); the day of the accident itself is not
included (≥1 lost calendar day).
4.6
2 Porsche AG and selected subsidiaries only report accidents that were officially recorded. Nonserious injuries (minor accidents) are not reported. Accidents that do not
result in lost days (calendar days) are classed as minor accidents.
32.0
37.0
15.0
Porsche Leipzig GmbH
54.2
61.3
45.2
Porsche AG
50.7
57.5
40.4
2.9
3.1
Porsche AG and selected subsidiaries do not make a distinction according to gender or between employees and workers who are not employees but whose work and/
or workplace is controlled by the organization, and do not show the individual categories for work-related injuries.
Fuel consumption
20.7-17.7
[1/100 km]
470
↑↓ ↑
469
Further information Glossary
Denotes novel methods of analyzing and evaluating quantities of
data that are too large and complex to be processed using manual
or conventional methods.
Big data
Battery electric vehicle
BEV
The basis of consolidation denotes all the companies included in the
consolidated financial statements.
Basis of consolidation
Balance-sheet CO2 neutrality along the entire value chain of our
newly produced vehicles describes the Porsche AG Group's ambition
to avoid and reduce CO2 emissions with a view to achieving neutral-
ity, especially in production (Scope 1 and Scope 2 emissions), in the
supply chain, and over the service lives of newly produced vehicles
(upstream and downstream Scope 3 emissions), as well as other
Scope 3 emission categories such as employee business travel.
Offsetting with carbon credits (including the reduction and capture
of CO2 emissions) is enshrined in the decarbonization strategy,
alongside efforts to reduce emissions. Where technically possible
and conceivable without a disproportionately high financial cost, the
Porsche AG Group prioritizes the avoidance and reduction of CO2
emissions over offsetting.
Balance-sheet CO2-neutral
B
The total cash and cash equivalents, securities, loans, and time
deposits, less financial liabilities to third parties in the Automotive
segment.
Automotive net liquidity
The definition of the automotive net cash flow margin describes the
ratio of the cash flows from operating activities in the Automotive
segment, less the cash flows from investing activities attributable
to operating activities in the Automotive segment, to the sales reve-
nue of the Automotive segment. The investing activities attributable
to operating activities do not contain changes in investments in
securities, loans, and time deposits in the Automotive segment.
Automotive net cash flow margin
Additions to intangible assets (with no capitalized development
costs) and property, plant, and equipment (with no rights of use) in
the Automotive segment.
Automotive investments in equipment
The Automotive EBITDA is defined as the operating profit of the
Automotive segment (EBIT) plus depreciation and impairment
losses/reversals of impairment losses on property, plant, and equip-
ment, capitalized development costs, and other intangible assets
in the Automotive segment. The definition of the EBITDA margin
for the Automotive segment describes the ratio of the Automotive
EBITDA to the sales revenue of the Automotive segment.
Automotive EBITDA margin
The BEV share is defined as the proportion of battery electric vehi-
cles (BEVs) in relation to the total number of deliveries-namely, the
total number of new vehicles delivered to end customers.
Automotive BEV share
As of February 22, 2024. Current consumption values can be found at https://www.porsche.com/international/fuel-consumption.
670-765
518-591
0
19
Capitalization ratio
The capitalization ratio is defined as the ratio of capitalized
development costs to total research and development costs in the
Automotive division. It shows the proportion of primary research
and development costs subject to capitalization.
Carbon footprint
Morgan Stanley Capital International World Index. A stock mar-
ket index that tracks the performance of around 1,500 stocks
worldwide.
MSCI World
Derived from the Latin word for glitter, mica denotes a group of
glittering materials that occur in granite, sandstone, and marble. In
addition to its visual qualities, it is an electrical and heat insulator
and strengthens materials. Mica is mined in around 35 countries,
including by unofficial small-scale prospecting operations. Mada-
gascar and India are the largest exporters of mica, followed by China
and Brazil.
Mica
-
M
Leadership in Energy and Environmental Design (LEED)
LEED is a global classification system for environmentally friendly
construction and is based on US standards. It defines a series of
standards for environmentally friendly, efficient, and sustainable
construction. Independent third parties certify that a building has
been designed and built in an environmentally friendly manner.
L
Describes the flotation-that is, an initial public offering made by
a previously unlisted company (with an AG or SE structure) to sell
shares in the issuing company.
IPO (Initial Public Offering)
!
eurozone.
A stock market index comprising 50 major listed companies in the
20.7-18.8
EURO STOXX 50
ESG (Environment, Social, and Governance)
eFuels are synthetic, potentially almost CO2-neutral fuels that are
produced using electrical energy generated from renewable CO₂
and hydrogen.
eFuels
EMAS is a voluntary European initiative and a seal of quality in terms
of environmental management. It supports companies and orga-
nizations that want to systematically improve their environmental
performance beyond the minimum legal requirements and reduce
their resource consumption. Participating organizations are required
to publish an EMAS environmental statement that is certified by an
independent, government-monitored auditor.
Eco Management and Audit Scheme (EMAS)
Automotive operating profit plus depreciation and changes in the
carrying amounts of property, plant, and equipment, capitalized
development costs, and other intangible assets in the Automotive
segment.
EBITDA
Im
Behavioral rules that companies choose to adopt voluntarily. A
Code of Conduct provides members of the company and business
partners with guidance on how to conduct themselves. Its purpose
is to encourage correct, responsible conduct at all times, avoid
unwanted actions, and define how business activities align with
ethics and the law.
Code of Conduct
Different greenhouse gases all have a different impact on the cli-
mate. To make it possible to compare these emissions, their climate
impact (global warming potential or GWP) is converted into CO₂
equivalents (CO₂e). For example, methane is 28 times more harmful
to the climate than CO2, so it has a GWP of 28 CO₂e.
CO₂ equivalent
The carbon footprint describes the influence of people or organi-
zations on global climate change on the basis of the CO₂ emissions
caused by their activities directly or indirectly. The carbon footprint
of a product, for example, relates to its entire life cycle, from manu-
facture to use to disposal.
ESG stands for Environment, Social, and Governance. These three
key areas form the foundation of methods, criteria, and frameworks
for companies to account for sustainability requirements.
P
665-784
0
707
520
Taycan Turbo Sport Turismo
590-693
522-616
0
21.8-18.6
517
380
with Performance battery Plus
Taycan 4S Sport Turismo
512-606
449-534
0
21.6-18.5
462
340
Taycan 4S Sport Turismo
701-808
550-650
0
435 20.9-17.9
320
Taycan Sport Turismo with Performance battery Plus
553-650
477-565
0
21.6-18.8
0
528-606
590-672
21.1-17.9
387
584
430
285
Macan Turbo
Macan 4
Macan
673-699
538-555
0
21.3-20.6
789
580
516-613
Taycan Turbo GT with Weissach package
528-554
0
21.6-20.7
789
580
Taycan Turbo GT
594-678
529-604
0
21.5-18.9
775
570
Taycan Turbo S Sport Turismo
638-677
408 20.6-17.6
Porsche Strategy 2030
Porsche whistleblower system
AHRE
DRIVEN BY DREAME
75
Oliver Blume, Chairman of the Executive Board
When a company's success
starts with a dream come true,
it's a wonderful thing.
↑↓ ↑ ||
473
Further information Financial calendar 2024
Quarterly information January to September 2024
October 29, 2024
Half-Yearly Financial Report 2024
July 24, 2024
Annual General Meeting 2024
June 07, 2024
Quarterly information January to March 2024
April 29, 2024
Annual Media Conference and Analyst and Investor Conference 2024
March 12, 2024
FINANCIAL CALENDAR 2024
The Porsche AG Group's vision of a factory that has the smallest
negative impact on the environment possible. The environmental
impact is to be reduced by means of selected KPIs and additional
qualitative criteria that are implemented in eleven fields of action.
This way, the environmental impacts by Porsche's own production
activities are to be reduced by 95% by 2030 compared to the 2018
baseline (or by 2040 for the development site in Weissach).
Zero-Impact Factory
The Worldwide Harmonized Light Vehicles Test Procedure is a test
procedure designed to calculate a vehicle's fuel consumption, range,
and emissions as realistically as possible.
WLTP
-
W
The UN Global Compact is a global United Nations initiative that
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to initiate change processes within companies and has a code of
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especially relating to human rights, labor standards, environmental
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in the UN Global Compact undertake to strategically align their
business with these ten principles and report on their progress at
regular intervals.
UN Global Compact
FERRY
R PORSCH
DRIVEN
BY
DREAMS
PORSCHE MUSEUM
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Tax rate
T
Porsche AG
Plug-in hybrid vehicles
PHEV
to customers in markets in the Financial Services segment.
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Penetration rate
The total cash and cash equivalents, securities, loans, and time
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Gross liquidity
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German Corporate Governance Code
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Gender pay gap
G
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Deliveries to customers
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Decarbonization Index (DKI)
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sustainability and environmental protection. Porsche is pursuing the
vision of a zero-impact factory with minimal negative environmental
impacts.
Production 4.0
Premium Platform Electric (PPE) is a modular platform for electric
cars that was developed jointly by Porsche AG and AUDI AG. PPE
allows for a wide range of rear and all-wheel-drive models in a vari-
ety of different versions. The all-electric Macan is the first Porsche
based on this.
Premium Platform Electric (PPE)
The Porsche whistleblower system is a mechanism for reporting
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Dr. Ing. h.c. F. Porsche Aktiengesellschaft
Porsche AG Group
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subsidiaries. Porsche AG is the parent company of the Porsche AG
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Secondary raw materials
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Science Based Targets Initiative (SBTi)
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Scalable Systems Platform (SSP)
SI
Task Force on Climate-Related Financial Disclosures (TCFD)
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The return on sales of the Porsche AG Group is defined as the ratio
of operating profit (before the financial result and taxes; EBIT) to
sales revenue. The Executive Board of Porsche AG uses the return
on sales to assess the operating profitability of the Porsche AG
Group.
The return on investment represents the return on average
invested capital for a particular period on the basis of the oper-
ating profit after tax. Invested capital is calculated as the oper-
ating assets reported in the balance sheet (property, plant, and
equipment, intangible assets, inventories, and receivables) less
noninterest-bearing liabilities (trade payables and payments on
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balance at the beginning and the end of the reporting period.
Return on investment
The ratio of profit before tax to the average tied-up equity.
Return on equity
472
↑ ↓ ↑ 0 |||
471
Further information Glossary
Materials that are obtained either by recycling a product used by an
end customer (postconsumer recycling) or by recycling produc-
tion waste (preconsumer recycling). For example, recycled metal
includes aluminum shavings that are collected, melted down, and
turned into a new raw material. See also secondary raw materials.
Representative Concentration Pathway (RCP 8.5 scenario)
Representative concentration pathways are representative scenar-
ios that describe the trajectory (i.e. pathway) of greenhouse gas
concentrations in the atmosphere, land use, and land cover up to
the year 2100. These scenarios outline a range of possibilities that
are meant to help companies make decisions. RCP 8.5 is a worst-
case scenario with high greenhouse gas emissions and limited
attempts to reduce them. This scenario is an important way of
determining what production sites have to be adapted to physical
climate risks. The scenarios were developed by the Intergovernmen-
tal Panel on Climate Change (IPCC).
Recyclates
-
R
The Porsche Code denotes Porsche's management mission state-
ment and offers long-term guidance as well as a target vision for
the employees and managers. It consists of eight dimensions that
set out guidelines on how everyone is expected to interact with one
another on a daily basis.
Return on sales
300
Taycan Sport Turismo
589-675
470
346
Cayenne E-Hybrid
265-255
11.7-11.3
440
324
Macan GTS
Cayenne
265-251
11.7-11.1
380
280
Macan S
242-229
10.7-10.1
265
195
Macan T
83-93
76-91
38-26
1.7-1.2 29.9-27.5
680
500
Panamera Turbo E-Hybrid
243-228
1.8-1.5 30.8-28.7
42-33
66-74
77-90
78-90
66-74
42-33
30.8-28.6
1.8-1.5
470
346
Cayenne E-Hybrid Coupé
275-246
12.1-10.8
353
260
Cayenne
10.7-10.1
76-82
45-39
2.0-1.7 31.7-29.9
739
544
Cayenne Turbo E-Hybrid
Cayenne
79-90
71-78
39-31
1.7-1.4 31.7-29.1
519
382
Cayenne S E-Hybrid
70-73
Cayenne S
265
Macan
Panamera
Panamera
[km]
(EAER city)
(EAER)
[km]
[g/km]
combined
urban
Electric range
weighted
Electric range
CO₂ emissions
Power
consumption
weighted
combined
[kWh/100 km]
[1/100 km]
[PS]'
[kW]
combined
Power
output
weighted
Power
consumption
Fuel
WLTP
Model
CO₂ emissions
combined
[g/km]
Plug-in hybrids
260
353
10.5-9.6
239-219
83-92
78-90
33-24
1.4-1.1 28.6-25.9
544
400
Panamera 4S E-Hybrid
Macan
86-95
79-92
32-23
1.4-1.0 27.8-25.9
470
195
346
89-96
79-93
32-22
1.4-1.0 27.6-25.3
470
346
Panamera 4 E-Hybrid
253-230
11.2-10.1
353
260
Panamera 4
Panamera
Panamera 4 E-Hybrid Executive
349
474
13.4-12.4
570
Taycan Turbo S
607-683
557-630
0
20.5-18.0
707
520
Taycan Turbo
A
607-705
549-642
0
20.9-17.8
517
380
Taycan 4S with Performance battery Plus
528-617
474-557
0
462
340
Taycan 4S
719-821
579-678
0
20.0-17.1
775
20.5-17.9
0
558-630
516-596
0
22.0-19.1
775
570
Taycan Turbo S Cross Turismo
585-668
515-597
0
22.0-19.1
707
520
Taycan Turbo Cross Turismo
435
588-690
0
22.0-18.8
517
380
Taycan 4S Cross Turismo
588-693
517-613
0
22.0-18.7
435
320
Taycan 4 Cross Turismo
612-691
517-610
320
Taycan with Performance battery Plus
569-662
739
544
with GT package
Cayenne Turbo E-Hybrid Coupé
304-284
13.4-12.5
474
349
Cayenne S Coupé
76-81
70-72
46-40
80-89
1.9-1.8
71-78
1.7-1.4 31.6-29.2
2.0-1.7 31.8-30.1
739
544
Cayenne Turbo E-Hybrid Coupé
275-247
12.1-10.9
353
260
Cayenne Coupé
519
382
Cayenne S E-Hybrid Coupé
303-282
39-31
combined
31.1-30.2
71-72
503-590
0
19.7-16.7
408
300
Taycan
Taycan
GLOSSARY
[km]
urban
[km]
[g/km]
Electric range
43-40
Electric range
combined
Power
WLTP
consumption
combined
[kW] Power [PS] [kWh/100 km]
Power
output
Model
Electric vehicles
468
↑↓ ↑
Further information Emission and consumption information
467
As of February 22, 2024. Current consumption values can be found at https://www.porsche.com/international/fuel-consumption.
' Overall system performance
79-82
CO₂
emissions
combined
Greenhouse Gas (GHG) Protocol
PORSCHE SPORTWAGEN
59
47
Milestones Team Spirit
Designing the sports car of the future together
also means fulfilling ever-growing demands
such as new drive technologies, new
regulations, and regional requirements. It's also
about fulfilling customer expectations in terms
of performance, safety, comfort, connectivity,
and infotainment. Examples include route
recommendations provided by the navigation
system with real-time information as well as
the intelligent charging planner for all-electric
Porsche sports cars. Or the option to play your
favorite tunes on the car speakers directly from
your smartphone. This vehicle interaction trend
is just going to grow and grow. Nowadays it's
also necessary to provide updates and new
functions even after a car has been purchased.
Steiner views the personal companion that is
the smartphone as a role model in this area.
"The experiences that customers have in
other environments, they also want to have
in their cars."
Because hardware and software are inextricably
linked in vehicle development, Steiner will also
be responsible for developing driver assistance
and autonomous driving functions in the future.
The same could be said for the electric and
electronic architecture and infrastructure for
the vehicle as a whole. "There's not a single
unit in my department that doesn't achieve.
its results in close collaboration with Sajjad's
units," says Steiner. "It goes both ways,"
emphasizes Khan. "The power of innovation
will unlock enormous potential as long as we
develop ideas together in our teams."
Connectivity and integration are key words
and play an essential role in the development
of future sports cars-and in the collaboration
between the two departments-which is why
the two Board members share an office space
at the Weissach Development Center.
2016 and has not only left his mark on new
model lines such as the Panamera, Macan,
and 718, but also launched full Porsche
electrification in the form of the Taycan. "Just
like everywhere else in the industry, we're
experiencing a huge transition at Porsche," he
says. "And it's not just the dominating issue of
electric mobility, but also new software-based
functions associated with the fast-growing
potential of connectivity. That has an impact on
the car's traditional ecosystem."
"Expectations are growing with the technical
possibilities," says Khan. "Anyone who has
smart home functions in their house wants
to be able to activate them on the way home,
for example." The same could be said for the
wide variety of mobile entertainment options.
The connected vehicle will increasingly be a
communications center, but with pronounced
regional differences. "Chinese customers use
their own digital ecosystems and platforms
for messages, chats, entertainment, and
payment," says Khan. "As a global brand
we need to take that into account." His
department is taking the lead when it
comes to R&D satellite in China, while other
ecosystems could be interesting in other
regions around the world. "That's why different
forms of collaboration would be possible in
different markets," explains the head of Car-IT.
"We integrate partners' digital ecosystems
wherever it makes sense. At the same time, we
also know exactly where we want to maintain
superiority in systems and data. We work with
major tech players, but also plan to implement
our own solutions with expertise," says Khan,
describing a strategy of both collaboration
and competition.
Michael Steiner, Member of the Executive Board responsible for
Research and Development
Michael Steiner, who has been with the
company since 2002, took charge of the
Research and Development department in
That's precisely why Sajjad Khan was appointed
to the Board in November 2023. As head of the
newly created Car-IT department, he's primarily
responsible for connectivity and infotainment.
His team also focuses on integrating the
ecosystems of third parties and developing
digital vehicle solutions such as the My Porsche
app. "Software is changing every aspect of
our lives," Khan explains. "Even household
appliances are now an everyday element of the
Internet of Things. More and more, the car itself
is actually a component in a larger network." It's
a component, however, with a highly emotional,
practical value. "The driving experience takes
center stage at Porsche." That's something
Khan himself experiences on a daily basis, as
his company car is a 911 Turbo S.
Hardware and software, steel and electronics,
tradition and future-elements that
complement one another and ideally form a
single unit. Michael Steiner and Sajjad Khan
are two members of the Porsche AG Executive
Board in charge of two departments with a
shared vision. "It's ultimately all about creating
a harmonious product," says Steiner. "Vehicles
with that unmistakable Porsche DNA inspiring
our customers time and time again." Khan
adds: "Our traditional virtues and abilities
form the core of our brand. But we're also
expanding these to include innovations from
the digital world."
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
F
46
The experiences that
customers have in other
environments, they also
want to have in their cars.
combining traditional and digital worlds
After all, there are no compromises-especially
when it comes to the driving experience. "A
Porsche will need to drive like a Porsche in the
future too," explains Steiner. "That continues
to be a central distinguishing feature. For
example, our models are well known for their
extraordinary braking and high-precision
control." Models with combustion engines
are decelerated by converting the car's
kinetic energy at the brakes into heat through
friction. In all-electric vehicles, on the other
hand, the brakes are largely applied by means
of recuperation-the electric motor converts
the car's kinetic energy into electrical energy,
while maintaining the signature feel of Porsche
braking. "That's just one example of how
we combine traditional and digital worlds,"
explains Steiner.
new driving and comfort experiences. The
growing amount of data also opens up many
new opportunities for developers and is one
of the driving forces behind innovation in the
automotive industry.
49
New data volume including data
for modern driver assistance and
safety systems
x800
48
New data volume
x10
"The traditional mechanical aspect and the
software need to work together to maintain
the impressive quality and innovation," says
Khan, adding that this not only refers to
car technology and systems, but also the
environment as a whole. "It also applies to
the cloud and apps." Cars have been evolving
into high-performance computers on wheels
for quite some time now. More and more
control units enable new functions and thus
Source: Porsche Engineering
Vehicles are evolving into high-performance computers on
wheels-one only need look at the amount of data that flows
through them. Highly automated driving functions, in particular,
will result in exploding data rates in the future. The use of
data in development is likely to accelerate, as the growing
quantities of data and new technology such as quantum
computers will provide engineers with new prospects-and
customers with unexpected driving experiences.
Big Data
Sajjad Khan, Member of the Executive Board responsible for Car-IT
We're expanding our
traditional virtues and
abilities to include
innovations from the
digital world.
Sajjad Khan and Michael Steiner both agree
that tradition and progress are inextricably
linked at Porsche, as are continuity and
innovation.
Khan and Steiner predict that more and more
functions of artificial intelligence will find
their way into the car. Conversation with the
vehicle in natural language is already a major
topic in Asia and will soon be an expected
standard in the other regions of the world. The
two board members also believe that sensors
will make it possible for an intelligent car to
recognize drivers and passengers and respond
to their needs. Intelligent assistance systems
for partial automation (or more) are topics of
discussion at Porsche. "There will eventually
be a demand for anything that makes driving
more comfortable and safer," says Steiner
with confidence. "Even if our sports cars are
still built for driving fun." He doesn't view
these as mutually exclusive. Even in the age
of digitalization, he's able to identify more
than enough opportunities to distinguish
Porsche. "We need to ensure we define a
form of intelligent vehicles that will appeal
to customers," adds Khan. "But that will only
work if we remain true to ourselves."
Past data
volume
which is to design the sports car of the future while
45
OCO
S&GO 707E
Curke
Macan Turbo Electric: Electric power consumption combined (WLTP) 20.7-18.8 kWh/100 km, CO₂ emissions combined (WLTP) 0 g/km,
Electric range combined (WLTP) 518-591 km, Electric range in town (WLTP) 670-765 km
a high-voltage booster, which in turn reduces
weight and frees up space.
An 800-volt battery therefore consists of two
400-volt batteries that operate in parallel. If
necessary, the two halves can first be equalized
in their state of charge and then charged
together. The Macan therefore doesn't need
The Macan offers a whole new level of flexibility
when it comes to choosing charging stations.
"Bank charging is a fundamental innovation
that's suitable for everyday use," explains
Gajdos. "Because many charging stations
still operate with 400-volt technology, we've
optimized how they're used." At stations that
operate with 400-volt direct current, the
battery is divided into two halves thanks to the
high-voltage separation elements installed.
Milestones Streamlining
Tomas Gajdos. "At the same time, we've
managed to improve safety features and
make the charging process more efficient."
Porsche's Integrated Power Box (IPB), for
which it registered a patent, is much like a
tiny house-a shining example of a compact
design. The IPB combines multiple key energy
components, including the AC charger, the
DC-to-DC converter, and a battery heater.
The latter automatically ensures robust
charging performance on winter days and
independently maintains the appropriate
battery temperature for planned routes with
charging stops.
Good things often come in small packages.
"We've developed new ultra-lightweight,
streamlined solutions," says project engineer
Energy is automatically fed back into the
battery whenever the brakes are applied,
with kinetic energy converted into as much
as 240 kW of regenerative energy depending
on braking intensity. Once the accelerator is
released, the Porsche's typical "gliding"
activates automatically-the drive switches
off and the car coasts along without using any
energy.
The requirements for the developers of the
drive and energy systems were immense.
They included outstanding performance,
low weight, and new ideas for charging
convenience, resulting in a system in which
each axle of the new Macan is powered by its
own permanent synchronous electric motor.
Featuring an adaptation of the well-known
800-volt architecture of the Taycan, the
Turbo variant boasts overboost power of up
to 470 kW (639 PS). A lithium-ion battery is
positioned in the underbody and features a
brand-new cell design and a total capacity of
152 ampere hours with gross energy content
of 100 kilowatt hours. The new battery allows
you to increase the state of charge from 10 to
80 percent in about 21 minutes. In terms
of range, that means about four minutes for
100 kilometers.
Tomas Gajdos, Project Manager for Premium Platform Electric
(PPE), Macan Model Line, Hemmingen
for important energy
components. We have
applied for a patent for
the compact box.
The Integrated Power
Box is like a tiny house
40
With innovations in battery and
charging technology, the Macan is
ready for flexible travel
41
The new Macan demonstrates its
090
44
Two board members, one vision: Porsche created its Car-IT
department in late 2023 to advance digitalization to a
whole new level in collaboration with Research and Develop-
ment. Integrating the new department is really no different
from developing future sports cars, because connection is
everything.
Team Spirit
43
Milestones Streamlining
Macan Turbo Electric: Electric power consumption combined (WLTP) 20.7-18.8 kWh/100 km, CO₂ emissions combined (WLTP) 0 g/km,
Electric range combined (WLTP) 518-591 km, Electric range in town (WLTP) 670-765 km
42
In other words, there is no finish line. Porsche
is following a straight line to the future of all-
electric mobility-without compromise.
Range-optimized aerodynamics, milestones
in the operating concept, and innovations in
the drive and battery technology: everything
ultimately needs to result in driving fun.
"Otherwise the Macan wouldn't be a Porsche,"
says Maurice van de Weerd who, as Manager
of Driving Dynamics, is responsible for the SUV
series and the Panamera. His team has tamed
the extraordinary peak torque of 1,130 newton
meters, with a key focus on performance at
the car's rear with rear-axle steering. "Our aims
were to maximize driving stability and traction
and ensure unrivaled agility and comfort,"
explains van de Weerd. He talks about precise
all-wheel drive control, the weight balance
with a slight emphasis at the rear, and the
distinct mixed tires. He even mentions the
controlled two-valve shock absorbers. "They
ensure comfort and make the combination
of driving mode and level control much more
noticeable." The developers also provided the
range-topping version with an electronically
controlled limited-slip differential as standard.
口】
Maurice van de Weerd, Manager of Driving Dynamics
for SUVS/Sedans, Weissach
No Porsche without
extraordinary driving
dynamics! That's
where we focus all
of our passion. The
Macan is clearly
the sports car in its
segment.
on the Weissach test track
outstanding dynamic driving characteristics
Milestones Team Spirit
Drive System
Sajjad Khan (left) and Michael Steiner share a vision,
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The Porsche 911 Turbo (997)
with VTG turbocharger took turbo
technology to a new level
57
generation of the 911 was a hit
lower fuel consumption, the 996-
With an increase in power and
August Achleitner, the certified engineer in charge of the
department for technical product planning at that time.
From 2001 to 2018, he was in charge of the model line
911. "There was just no more potential for the air-cooled
two-valve engine." Elimination of air cooling led to
outrage among some die-hard 911 drivers, but it quickly
petered out. The 996-generation 911 emerged as a great
success and was groundbreaking in terms of emissions,
sound, and fuel consumption.
"That was our ticket to the new technology," recalls
Vice President Model Line 911 (2001-2018)
54
achievement, Porsche
impressively underlined
its pioneering role in turbo
technology once again.
Frank-Steffen Walliser,
Vice President Model Lines 911 and 718 (2019-2022)
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Milestones Drive System
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The next big step in 2024 is just around
the corner, as Porsche has developed an
ultra-sporty hybrid-as seen in racing-for
selected derivatives of the 911 model line.
"The high-performance hybrid seamlessly
continues innovative development of the 911
drive," says Frank Moser, who now manages
the 911 and 718 model lines. "This benefits
the driver whenever they're accelerating. We
therefore have a technology that will prepare
us for future emission standards." Typical of
the Porsche 911.
transmission for motorsport and won races
with it. All that was missing for application
in series production were control electronics
with sufficient power. Porsche picked up
development again with its digitalization
activities. The first dual-clutch transmission for
production sports cars made its debut in the
911 Carrera in 2008. The Porsche dual-clutch
transmission (PDK) combined the driving
dynamics and highly impressive mechanical
efficiency of a manual transmission with
the high gearshift and driving comfort of an
automatic transmission. Even at its debut, the
PDK transmission was able to change gears
up to 60 percent faster than an automatic
transmission that shifts gears via a torque
converter-the more common method at that
time. It also enabled gear changes without
interrupting drive to the wheels and reduced
fuel consumption. The transmission was a
sensational success. More than three quarters
of all Porsche 718 and 911 models delivered
today are equipped with PDK.
the 1980s, Porsche built the first dual-clutch
Whether engines or transmissions, some
developments required time to mature. In
In 2006, the 911 Turbo achieved an impressive
leap in performance in the 997-generation,
with power and torque increasing by more
than ten percent and specific output climbing
to the new highest point of 98 kW (133 PS)
per liter of displacement. Agility, in particular,
increased dramatically thanks to new, unique
turbocharger technology. For the first time,
chargers with variable turbine geometry
(VTG) supplied the engine of the 911 Turbo
with process air. These VTG chargers were a
world-first in combustion engines. Only with
the development of high-alloy nickel-based
materials with extreme resistance to high
temperatures was it possible to manufacture
VTG chargers with the necessary fatigue
strength and service life. This technology
enabled optimum use of the entire exhaust
stream at all speeds for the purpose of
turbocharging. The variable geometry of the
charger was calculated to ensure that it was
able to handle even the maximum exhaust
mass that could occur, which in turn eliminated
the need for a bypass valve. "Through this
groundbreaking achievement, Porsche
impressively underlined its pioneering role
in turbo technology once again," says Frank-
Steffen Walliser, who oversaw the 911 and
718 model lines from 2019 to 2022. "The VTG
chargers helped the six-cylinder turbo achieve
a dramatic jump in power to up to 515 kW
(700 PS) in the 911 GT2 RS."
A variable-geometry turbocharger opened up a potential power output of 515 kW (700 PS)
Frank Moser, Vice President Model Lines 911 and 718
hybrid seamlessly
continues innovative
development of the
911 drive.
The high-performance
Fit for the future: the ultra-sporty hybrid makes the six-cylinder even faster and more efficient
August Achleitner,
The switch from air
to water cooling was
our ticket to the new
technology.
Through this groundbreaking
With the switch from air to water cooling, the six-cylinder broke with tradition-and set new technical benchmarks
Milestones Drive System
delivered 130 PS, for a top speed of 210 km/h. For the
past 60 years, this technical layout has been the starting
point for all further developments of the sports car
originating from the 911.
a brand-new sports car made its world premiere at the
IAA. At its core was a new six-cylinder at the rear, the
first by Porsche. With two-liter displacement, the engine
Porsche laid the foundation for its icon in 1963, when
911 with six-cylinder boxer engine
and rear-wheel drive
Compact, smooth and free-revving, the first Porsche six-cylinder engine was a sports car engine par excellence
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The naturally aspirated engine of the Porsche 911 has come a long way over the past 60 years, now with
four times the power from twice the displacement. Culminating in the anniversary model, the 386 kW
(525 PS) 911 S/T. It still has six cylinders and its boxer design and is still free-breathing. It epitomizes the
911 principle, the uniquesness of the 911, reinventing itself time and time again, and yet always remaining
true to itself. Its drive technology has continued to develop, but the fundamental concept has remained
unchanged-whether naturally aspirated, as a turbo, or in the future even as an ultra-sporty hybrid.
911 S/T: Fuel consumption combined (WLTP) 13.8 l/100 km, CO₂ emissions combined (WLTP) 313 g/km
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The concept of a career: the original
about exhaust gas aftertreatment, Porsche's
engineers equipped the sports car with two
metal catalytic converters, four lambda
probes, and intelligent engine management,
making the 911 Turbo's flat-six the lowest-
emission production engine in the world
in 1995.
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Milestones Drive System
Two years later, the engineers would achieve
the next milestone in engine development.
To further improve the quality of the exhaust
performance, they developed and brought
cylinder heads with four valves per cylinder into
series production, which required a paradigm
shift: the six-cylinder boxer engine was
converted from air to water cooling.
The 993-generation 911 Turbo was the
crowning glory in the development of air-
cooled six-cylinder engines in the mid 1990s
and sparked the era of twin-turbo engines
for the 911 series. Positioned very close to
each bank of three cylinders, the two small
turbos could respond to every movement of
the accelerator faster than the single turbo
in the previous model. The high-performance
engine delivered 408 PS, surpassing the
400 PS mark for the first time. Also ambitious
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engines of the 911. Thanks to its unique
combination of turbocharger and fuel injection,
the 911 Turbo fulfilled the stringent American
emissions regulations from the very start.
Each generation of the 911 achieves new
milestones in drive technology. In the early
1970s, Porsche put the increased power of
turbocharging to the test in racing with great
success. The technology was ready for series
production in 1974, and Porsche presented
the 911 Turbo (known internally as the 930).
With 260 PS, it was one of the fastest cars
of its time. Technologically speaking, Porsche
was one step ahead of the competition. For
the first time, boost pressure was regulated
with a controlled valve on the exhaust side,
taming power delivery and making the
turbocharged engine suitable for everyday
As of 1974, "turbo" became a byword for Porsche. The first 911 Turbo would turn the luxury sports car class upside down for good
pressure on the competition
the first Porsche 911 Turbo quite literally put
The powerful, high-performance engine of
PORSCH
use. With its displacement increased to
three liters, the Turbo engine was aspirated
Chairman of the Executive Board
Dr. Oliver Blume
Every success story
begins with a dream...
What does that mean to you?
Is there a childhood dream you like to
reminisce about?
1948
2023
To be able to fly and travel the world.
Teamwork makes the dream work.
Having a job that I love and that takes me
around the world.
Do you have a dream that you have yet to realize?
To discover countries I haven't visited,
cultures I haven't experienced and people
I haven't met.
75
What dream have you fulfilled?
70
Bold thinking and decisive action: the members of the Porsche Executive Board (from left to right) with the all-electric Macan
69
It's all about people!
S.GO 7058
Detlev von Platen
Sales and Marketing
Andreas Haffner
Human Resources
and Social Affairs
Lutz Meschke
Deputy Chairman
of the Executive Board,
Finance and IT
Dr. Oliver Blume
Chairman of the Executive Board
Sajjad Khan
Car-IT
Dr. Michael Steiner
Barbara Frenkel
Procurement
Research and Development
Albrecht Reimold
Production and Logistics
↑↓ ↑ ||
What is your dream car?
What does that mean to you?
Lutz Meschke
Is there a childhood dream you like
to reminisce about?
My brother had a silver 993 Carrera 2 with
an air-cooled engine. It was a wonderful car.
It was also the genesis of my passion for
Porsche. I too wanted to drive a car like that at
some point.
What dream have you fulfilled?
I am living my dreams, I have a happy family,
and I am healthy. Professionally, I have always
done what brings me joy and fulfillment.
I start every working day with a smile.
Do you have a dream that you have
yet to realize?
Sustainability is important to me. Porsche
procures a lot of components from direct
suppliers. The only way we can do more to
protect the environment is to work with
our partners. I am working with the entire
Procurement team to accomplish this-we are
all immensely passionate and committed.
Teamwork makes the dream work.
Procurement is a team sport too. It's also true
that the more diverse the team, the better.
Personally, I think it's exciting to work in teams
like this. It is extremely challenging, but also
incredibly creative and efficient.
33
Member of the Executive Board
responsible for Procurement
My old black Beetle ... and my 911 R.
Barbara Frenkel
71
Deputy Chairman of
the Executive Board and Member
of the Executive Board responsible
for Finance and IT
Is there a childhood dream you like
to reminisce about?
When I was little, I was always excited to spot
a 911. Standing on the back seat in my father's
VW Beetle, I would always shout "When I grow
up, I want to drive this car."
What dream have you fulfilled?
I have always dreamed of having a wonderful
family with lots of children. It can certainly be
a challenge at times, but thanks to my wife's
support it's all worked out. I can say that it has
all worked out. The occasional spikes in blood
pressure and worry lines have been worth it!
Do you have a dream that you have
yet to realize?
As a young soccer player, I always wanted
to hold the Bundesliga Meisterschale
championship shield in my hands. As a
player, I never did make it to the German
championships. But I might manage it as
a member of the Supervisory Board and
a sponsor.
Teamwork makes the dream work.
What does that mean to you?
It's almost a platitude. The important thing
for me is that you have to be a team player,
even if you're a boss or manager. Just like in
sports, you need a strong team. I believe that
purely hierarchical models of management
are obsolete.
What is your dream car?
A dream of mine came true in 2001 in the
form of my first company car at Porsche:
a 911 Cabriolet, in Racing Green. Turning
the ignition for the first time brought a
smile to my face.
To our shareholders Members of the Executive Board
9000
The Executive Board of Dr. Ing. h.c. F. Porsche AG
We're creating
the conditions
to secure jobs
over the long
term.
As you can see, Porsche is looking to the future with courage
and determination. With passion and pioneering spirit. This will
empower us to add new chapters to our success story. With
you at our side.
opportunities and trial periods, allowing
employees to get acquainted with new
departments," says Haffner. "This flexibility
can be helpful in providing guidance. That's
how we consolidate our power to innovate over
the long term.
Porsche uses a variety of channels to
communicate offers, from internet, intranet,
and social media to the award-winning
employee magazine Carrera and the associated
TV format. "Porsche Transformation Days"
are elaborate internal trade fairs that have
proven to be an effective tool for actively
integrating the team. All the departments have
the opportunity to present themselves with
transformation topics that offer visual and
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Milestones Change
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S GO 659E
There are opportunities in every crisis.
Positive thinking can help you focus on
issues that can be influenced.
Barbara Frenkel, Member of the Executive Board responsible for Procurement
Innovations and a strong identity:
the third generation of the Panamera
inspires and remains true to itself
physical experiences, from drive technology
and data management to 3D printing and Al.
"Transparent information, shared experiences,
and personal conversations spark new ideas
and can thereby transform concern into
enthusiasm," says Haffner. A fluctuation rate
below one percent is confirmation that the
Porsche Workforce Transformation measures
are effective. This wouldn't be possible without
all of the different programs dedicated to
issues such as health, flexible work models,
retirement plans, and a healthy work-life
balance. The "Porsche hilft" initiative is a
simple way to provide employees with suitable
volunteer options and thus enable a change in
perspective like no other.
"We provide individual transformation and
training consultation as well as internal and
external qualifications. We also make it easier
to change roles and offer job shadowing
External surveys confirm that Porsche is
one of the most popular employers. In fact,
the company took first place in the areas
of business science and engineering in the
Universum 2023 employer study, which
surveyed 21,000 students. The questionnaire
filled out by 12,000 academics with career
experience provided the same results. In the
computer science segment, student selections
placed Porsche in fourth place. The wide
range of skilled occupations in the Group and
even the opportunity for a dual work-study
program also offer good career opportunities.
"We're always updating our offers and in
some cases even overhauling them to ensure
we remain attractive both internally and
externally," explains Haffner.
Take the Leipzig plant as an example: to ensure
successful conversion of the production
facility for the all-electric Macan, about
6,000 participants were trained in qualification
measures through to the end of October 2023.
as drivers of innovation
"There are opportunities in every crisis.
That's what I concentrate on. Positive thinking
can help you focus on issues that can be
influenced," says Frenkel. "It takes resilience in
stressful situations, clear goals and intensive
communication to find good solutions
under pressure."
After all, it's always people who shape change,
contribute new ideas, and develop effective
alternative strategies, whether externally, with
the more than 7,000 Porsche partners around
the world, or in internal dialogue.
Take semiconductors as an example: With
around 5,000 microchips installed in each
Porsche Taycan, interruptions in the supply
chain can turn vehicle production upside
down. Dual sourcing, which entails expanding
the partner portfolio, can be a successful
security measure. "We've since approved
an alternative component for some critical
semiconductors," explains Frenkel. "We also
take a critical look at every component to
determine whether a certain level of inventory
makes sense." Prioritizing certain cars in
production is another sensible option for
getting through any shortages.
What is your dream car?
Andreas Haffner,
Member of the Executive Board
responsible for Human Resources
and Social Affairs
Focusing on people: Andreas Haffner
and his team are making the workforce
fit for the future
Take wiring harness as an example: More than
4,000 employees produce wiring harnesses for
Porsche in Ukraine. "We know these suppliers
well. The difficult situation there has an impact
on us, of course," says Frenkel, who still stands
behind the company out of a sense of solidarity
and because it delivers good quality. But she
does need a plan B. Within a few months,
the systems and tools used in Ukraine were
duplicated and set up in other countries.
"Especially when there's a crisis, there's more
than one solution in procurement. We've
developed a whole host of measures for better
securing the supply and we continue to expand
and optimize them." The past few years have
seen a dramatic change in the procurement
industry, which operates much like a hinge-like
a moving connection between the inside and
outside. Procurement has long been a driver of
innovation and a source of strategic ideas, which
is one of the reasons why Barbara Frenkel's
office is located at the Porsche Weissach
Development Center. eFuels production in
Chile is another good example. It takes new
structures and areas of expertise to fulfill all of
the new tasks and ensure robust finances even
in volatile times. In other words, it takes change
management and workforce transformation.
"Especially in Barbara Frenkel's department,
last-minute changes resulting from external
influences can be particularly challenging,"
says Andreas Haffner, Member of the Executive
Board responsible for Human Resources
and Social Affairs-and thus for more than
40,000 employees around the world. "But as a
fundamental concept, transformation affects
our entire company and the entire industry.
There's no need to be afraid of electrification,
automation, digitalization and artificial
intelligence. We welcome these transformation
megatrends and plan to exploit them for us
as a team."
It's likely that one in four employees will have
to learn a new trade or change responsibilities.
"We plan to take everyone with us on our
journey," emphasizes Haffner. "We're creating
the conditions to secure jobs over the long
term, which is why we launched one of the
largest qualification campaigns in company
history. Using transformation maps and
strategic personnel planning, we have a
concrete plan for how to prepare our team for
the future. For example, we've responded to the
shortage of IT architects with our own studies
program and are now training them ourselves."
Procurement in transition:
Barbara Frenkel and her team
Take Zuffenhausen plant as an example:
production of the Taycan kicked off in 2019,
creating more than 2,000 new jobs. Porsche
recruited about one third of the team from
within the company and spent months training
them for their new responsibilities.
For Procurement and Human Resources,
creating stability in change means always
thinking about today, but also about tomorrow
and the day after. And that requires a keen
eye for visions and visionaries, as well as for
companies and people who enrich Porsche,
particularly because they're different and add
to diversity. A variety of perspectives is a
key driver when it comes to shaping change.
"It may be more challenging to collaborate
in diverse teams than in homogenous ones,
where everyone has the same opinion. But
it's also much more innovative, creative,
and productive," says Haffner. "We want
to raise awareness. A workforce with 19
percent women is just not good enough."
His department launched a company-
wide initiative to establish diversity in
everyday operations, with measures that
focus on a variety of areas such as targeted
recruiting formats, mentoring programs, and
communication networks. A key supporter is
Barbara Frenkel, whose own career has been
shaped by curiosity, courage, and change.
With a degree in chemistry and rubber
technology, she joined Porsche as Manager
of Quality Methods and Systems in 2001.
She was later appointed Head of Sales for
Europe and ultimately assumed responsibility
for procurement as the first woman on the
Executive Board. "I got to know both ends
of the value chain," she says. She introduces
colleagues who make a difference at Porsche
in LinkedIn videos and shares career tips
in interviews. Frenkel has increased the
percentage of women in her department to
around 40 percent. Haffner, who is a qualified
lawyer and has been involved in Human
Resources at Porsche since 1997, joined
his team on Christopher Street Day sporting
rainbow colors in line with the motto: Unique
alone. Diverse collectively. Successful together.
"It doesn't matter to us where you come from,
how old you are, who you love, or which gender
you identify as," he emphasizes.
Whether you're purchasing a Porsche or joining
the company, you're not only choosing a brand,
but also a unique community-a family that
has developed over generations, always views
change as an opportunity, and achieves key
milestones in an environment of change.
LETTER FROM THE EXECUTIVE BOARD
MEMBERS OF THE EXECUTIVE BOARD
Dear Sir or Madam,
Dear Friends of the Company,
For Porsche AG, 2023 was a truly special year. It marked two
significant anniversaries: 75 Years of Porsche Sports Cars and
60 Years of the 911. We celebrated our unique history alongside
countless Porsche enthusiasts at numerous events around the
world, demonstrating that our long-standing brand has lost
none of its enormous appeal. The Porsche legend is more alive
than ever.
At the same time, we have added a new chapter to our success
story, based on our Porsche Strategy 2030. It defines our
ambitious long-term objectives and milestones. We think in
terms of opportunities as we work to accomplish them. We
take new challenges head-on and convert them to solutions,
results and success. For our company, our customers, and our
workforce. And for you, our shareholders.
Today, our brand represents a new understanding of luxury:
modern, sporty and extremely forward looking. Luxury
that blends great exclusivity with sustainability and social
responsibility. Luxury that marries tradition and innovation and
makes the individual dreams of our customers come true,
time and time again.
We have never lost sight of this ambition since our successful
IPO. We have pursued it determinedly and systematically, with
compelling new products and outstanding service. Through
strategic investments in innovative technology and digital
solutions. And through collaboration with expert partners. In
doing so, we aim to play a major role in shaping the future of
sustainable mobility.
The newly obtained independence of Porsche AG means that
we can operate with even greater flexibility in our day-to-day
business and focus even more heavily on our strategic
objectives. At the same time, we will continue to benefit
from synergies and economies of scale in the Volkswagen
Group. This unique situation has given us significantly more
entrepreneurial flexibility. Porsche has, in short, switched
up into another gear and increased its speed.
Porsche is now one of the most valuable luxury brands in
the world. Never before have our new cars excited as many
people as they did in 2023. We also enjoy a healthy, solid
cost structure. It has made a significant contribution to the
positive development of our business, to our strong key financial
indicators, and to a stable return on sales, which has remained
at the high level seen the previous year.
This is all in spite of extremely challenging general economic
conditions: geopolitical upheavals and natural disasters not only
proved a serious challenge for people in the crisis-hit regions
in 2023, but they also dramatically stifled global economic
dynamism. Nevertheless, Porsche again demonstrated its
tremendous resilience.
We now intend to continue down this path and utilize our
potential. With great determination and momentum. We will
continue working through our 10-point plan systematically.
We will optimize our performance in all strategic fields of action,
from the product portfolio, electric mobility and supply chain
resilience to sustainability and digitalization.
Following its successful launch, our "Road to 20" program will
bolster our financial strength permanently. To this end, we have
systematically scrutinized everything again, starting with our
range of products before moving on to pricing and ultimately
our cost structure. And we have built a complete package
of measures. This will increase the quality of our contribution
margins and make our products and services even more
attractive.
Our recently unveiled cars received an extremely positive
reception. The new generation of the Panamera is more digital,
more luxurious, and more efficient. It offers an even greater
breadth of ability from sportiness to driving comfort. The new
Taycan represents performance on a level never seen before.
And the all-electric Macan speeds up our transition to more
sustainable electric mobility.
We are also working intensively with highly promising future
technology, such as the development and production of high-
performance battery cells, which is why Porsche took over the
battery specialist Cellforce Group in May 2023. In the future,
we aim to manufacture bespoke battery cells on a large scale in
our own plant.
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67
MEMBERS OF THE SUPERVISORY BOARD
Milestones Change
65
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48
356 "No.1" Roadster
PORSCHE
TO OUR SHAREHOLDERS
With warmest regards,
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69
MEMBERS OF THE EXECUTIVE BOARD
78
PORSCHE IN THE CAPITAL MARKET
80
REPORT OF THE SUPERVISORY BOARD
87
LETTER FROM THE EXECUTIVE BOARD
I have always been fascinated by the 911.
Is there a childhood dream you like to
reminisce about?
find me in a Linden Green 911 Turbo S
Cabriolet. Even simply starting the engine
is an experience!
12.1%
Institutional
and private
investors
2023
ANNUAL GENERAL MEETING
The first Annual General Meeting since the IPO was held at the
Porsche Arena in Stuttgart on June 28, 2023. It was attended by
more than 1,400 shareholders and shareholder representatives,
with 100% of the voting capital represented. All resolutions pro-
posed by the management were passed unanimously. One of the
resolutions proposed to distribute all €915.5 million of the dis-
tributable profit from the 2022 financial year to the shareholders
in the form of a dividend. As such, a dividend of €1.00 per ordi-
nary share and €1.01 per preferred share was paid. The actions
of the members of the Executive Board and of the Supervisory
Board in the 2022 financial year were also formally approved.
AWARD-WINNING IPO
The IPO in September of the previous year was a resounding
success, judging by the strong interest shown by international
investors and the successful listing in an extremely difficult
environment. A number of prizes were awarded in recognition of
this success over the course of the year.
75.4%
Volkswagen AG'
Volkswagen AG indirectly holds its shares via Porsche Holding Stuttgart GmbH
DIALOG WITH THE CAPITAL MARKET
The Executive Board and members of the Investor Relations
department maintained a constant, trusting dialog with inves-
tors and analysts in the reporting period. Numerous discussions
took place; although some were held by phone or over the usual
videoconferencing platforms, the majority took place in person
in Zuffenhausen or on the premises of the investors. Follow-
ing the publication of the results for 2022 as a whole and the
individual quarters in the reporting year, a roadshow involving
the Executive Board of Porsche AG was organized for the most
important investors in New York, London, and Frankfurt. Addi-
tionally, numerous other roadshows and a series of interviews
with analysts and investors were held at the headquarters of
Porsche AG in Stuttgart-Zuffenhausen. Porsche even used the
global launch of the Panamera in November 2023 to hold a
face-to-face workshop with analysts and investors in Shang-
hai. The workshop focused on business in China and overseas
markets as well as Porsche's individualization strategy.
78
120
28
110
Porsche Automobil
Holding SE
100
12.5%
Porsche AG's subscribed capital of €911 million is made up of
50% voting ordinary shares and 50% nonvoting preferred shares.
Ordinary and preferred shares are no-par-value bearer shares.
Furthermore, the holders of nonvoting preferred shares receive
from the annual distributable profit an additional dividend of
€0.01 per preferred share above the dividend attributable.
to the ordinary stock. The 455,500,000 ordinary shares and
455,500,000 nonvoting preferred shares each represent 50% of
the company's share capital. Volkswagen AG indirectly holds, via
Porsche Holding Stuttgart GmbH, 75.0% of the ordinary shares
minus one ordinary share. Porsche Automobil Holding SE directly
holds 25.0% of the ordinary shares plus one ordinary share and
thus around 12.5% in Porsche AG's total share capital. Of the
nonvoting preferred shares, around 75.8% is indirectly held
by Volkswagen AG via Porsche Holding Stuttgart GmbH, and
around 24.2% is in free float (as of December 31, 2023).
Dreams are made a reality by strong
teams that goes for motorsport and
vehicle projects alike.
What is your dream car?
Today it's a 911 with a high-revving naturally
aspirated engine-such as the current
911 S/T. And tomorrow it will be an open-
topped, electric sports car like the 983.
76
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
77
To our shareholders Members of the Executive Board
PORSCHE IN THE CAPITAL MARKET
STOCK PRICE AND OVERALL MARKET
Based on the German stock market index DAX, the European
EURO STOXX 50, and the market-wide global index MSCI World,
the market as a whole performed very well in the reporting
period. This was driven by a number of different factors: in
particular, the processing industry benefited from significant
improvements in global supply chain difficulties and was
able to clear its order books, some of which were completely
full, especially in the first six months of the year. This was
compounded, especially in the fourth quarter of the reporting
period, by hopes of interest rate cuts, kindled by statements
from Jerome Powell, Chair of the Federal Reserve of the United
States, and representatives of the ECB, following the slowdown
in inflation. So far at least, political factors such as the
confrontations in the Middle East and the ongoing Russia-
Ukraine conflict have not had a long-term impact on global
stock markets.
Stock price development in 2023
Index 100
130
The DAX enjoyed significant growth in 2023 (+20.3%), as did
the MSCI World (+21.8%), and the DJ US Auto Index (+19.1%),
which is of relevance to Porsche. In contrast, Porsche's shares
had lost a lot of their dynamism by the end of 2023, following
a strong start in the first six months of the year. In light of the
challenges in 2024, which will be characterized by four product
launches and lingering weakness in the Chinese market, some
investors took the opportunity to take profits. Due to slowing
demand, especially in China, investors also moved away from
luxury goods, which caused their performance to be weaker
than that of the overall market. The peak price of Porsche's
preferred shares was €120.35 on May 22, 2023, compared
to the lowest price of €79.90 on December 28, 2023. The
year-end price of €79.90 corresponds to market capitalization
of around €72.8 billion. Porsche preferred shares worth an
average of approximately €69 million were traded every single
day in 2023.
SHAREHOLDER COMPOSITION
Shareholder composition as of December 31, 2023
(as percentage of share capital)
What does that mean to you?
90
January 02, 2023
8,296.00
Oct. 25, 2023
Sep. 22, 2023
91.94
85.98
249,162.46
8,598.00
Purchase
Purchase
Supervisory Board
Purchase
Sep. 22, 2023
92.08
29,926.00
Purchase
Member of the
Executive Board
Member of the
Executive Board
Supervisory Board
Dr. Wolfgang Porsche
Dr. Wolfgang Porsche
Dr. Oliver Blume
82.96
80
Nov. 28, 2023
↑ ↓ ↑ 0 |||
June 15, 2023
December 29, 2023
The luxury peers include: Burberry, Brunello Cucinelli, Salvatore Ferragamo, Ferrari, Hermès, Kering, LVMH, Moncler, Prada, Richemont.
DAX
SXAP
NOTIFICATION OF DIRECTORS' DEALINGS IN ACCORDANCE WITH ARTICLE 19 OF THE
MARKET ABUSE REGULATION (MAR)
Luxury Peers
Name
Function
Type of
transaction
Aggregated
volume in €
Price in €
Date
Porsche AG
79
To our shareholders Porsche in the capital market
Teamwork makes the dream work.
To climb a few large mountains, as long as
I am still fit enough to do it.
Do you have a dream that you have yet to
realize?
Member of the Executive Board
responsible for Car-IT
Is there a childhood dream you like
to reminisce about?
I grew up in austere circumstances in Pakistan,
so education was my childhood dream: to
provide for my family and build a better future.
What dream have you fulfilled?
I have made that very dream come true. To
prevent it from remaining just my dream,
I support women in education in particular,
through various social projects in my
home country.
Do you have a dream that you have
yet to realize?
I want to work with the global Porsche
team to put us in pole position when it
comes to software.
Teamwork makes the dream work.
What does that mean to you?
I believe that the most important aspect of
success is a strong, motivated team, which is
why fairness and teamwork on a level playing
field are so important to me.
Sajjad Khan
What is your dream car?
73
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
Andreas Haffner
Member of the Executive Board
responsible for Human Resources
and Social Affairs
Is there a childhood dream you like
to reminisce about?
After I watched the moon landing on TV in
1969, I was desperate to be an astronaut and
explore other planets.
What dream have you fulfilled?
Even during my studies in Germany, I dreamed
of studying at an American university. After I
graduated, I was able to fulfill that dream and
I earned a master's degree in the US.
Do you have a dream that you have
yet to realize?
I still have a lot of dreams-there isn't enough
space on the page for them all. For example,
I would still like to obtain a pilot's license, learn
how to kitesurf, or travel with my family to
places in foreign countries that we have never
seen before.
Teamwork makes the dream work.
What does that mean to you?
A lot of dreams cannot be realized unless you
work as a team. This goes for professional
environments as well as at home. First and
foremost, you need team players who give
their all to help you realize the dream, and who
have your back, even in difficult situations.
What is your dream car?
That is a very tough question, but it would
definitely be a Porsche.
72
To our shareholders Members of the Executive Board
My first company car at Porsche-a crimson-
coloured 911 Turbo S Cabriolet-a long-held
dream of mine come true. That being said,
I also really like to use my e-bike for shorter
journeys.
Detlev von Platen
What dream have you fulfilled?
I am extremely thankful for the opportunities
life has given me, both professionally and
personally. I've taken great roles in Germany
and abroad and helped to develop new
technology. I find it especially fulfilling when
I am able to motivate, convince, and give a
team wings.
Do you have a dream that you have yet to
realize?
I don't have one big dream. I simply want to
enjoy life in good health for as long as possible
alongside my family and friends.
Teamwork makes the dream work.
What does that mean to you?
To quote the star basketball trainer
Phil Jackson, "The strength of a team is each
individual member. The strength of each
member is the team." Manufacturing cars
was and is teamwork!
What is your dream car?
The 911 Targa with its distinctive silhouette,
rollover bar and big, curved rear window.
Although I find the Taycan just as exciting-I
love electric mobility!
Dr. Michael Steiner
Member of the Executive Board
responsible for Research and Development
A semiconductor factory in China closes due
to a coronavirus outbreak. A container ship
gets stuck in the Suez Canal. War breaks out in
Europe, resulting in an energy crisis. Headlines
like these can shake people to their core. For
around 700 procurement employees under
Barbara Frenkel, a member of the Executive
Board, they also require urgent action. Frenkel
is responsible for an annual purchasing
volume of more than €14 billion-as well as
for her team.
My happiest childhood dreams revolved
around sporting successes and fast means
of travel.
What dream have you fulfilled?
I realized my first major dream with a
BMW R80G/S. It was my pride and joy and
my freedom.
As a child, I wanted to be a train driver.
Although I didn't end up as one, I did at least
stay loyal to the mobility sector.
to reminisce about?
Is there a childhood dream you like
Member of the Executive Board
responsible for Production and Logistics
Member of the Executive Board
responsible for Sales and Marketing
Is there a childhood dream you like
to reminisce about?
It was flight-always associated with
freedom, adventure, and the longing to
explore new destinations. But also a certain
degree of risk.
What dream have you fulfilled?
To found a company and build it up from
nothing and to do it abroad. I had the honor
of doing this with what was then a new
subsidiary of Porsche in France, with a
wonderful team and while actively helping
to shape the future of the company.
Do you have a dream that you have
yet to realize?
I drive one to this day. At the moment you'll
I am very pleased to have already been able
to fulfill some of my dreams. As such, I am
now more interested in helping others and
encouraging them to dream a dream.
What is your dream car?
The Porsche I get to drive every day as my
company car is a dream vehicle. If I could keep
one, it would probably be the 911 RS 2.7
or the new 911 S/T.
74
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
75
To our shareholders Members of the Executive Board
Albrecht Reimold
Teamwork makes the dream work.
What does that mean to you?
Team spirit is the deciding factor in a
company's success. Motorsport is a great
example of what can be achieved with the
right mindset: we have to enjoy competing
against the best. With passion and, regardless
of success, with a degree of humility.
61
Lutz Meschke
GE
INE
AG
CH
AN
Stability describes a resilient system state and an
emotionally charged comfort zone. Change means
transition, transformation and the potential for uncertainty.
So is there such a thing as stability in change? That's the
business challenge for industrial transformation.
The Porsche AG Group sees itself as a member of and partner to
society, one that is aware of its responsibility. As part of its sus-
tainability strategy, the Porsche AG Group assists regions and
communities around the world in conserving the environment,
guaranteeing good labor and living conditions, and boosting
social cohesion.
Partner to Society
Strategy field
In the reporting year, the Porsche AG Group continued to expand
cooperation in mixed teams: in an environment characterized by
diversity, the various strengths and skills of everyone involved
should complement one another optimally, enabling every
employee to tap their full potential. → Equal treatment and opportuni-
ties within the own workforce
As part of its sustainability strategy, the Porsche AG Group
attributes great importance to diversity and equal opportunity.
Besides equal opportunities between the genders, the focus is
on the diversity of the international workforce. The Porsche AG
Group values openness towards people of different origins and
sexual orientations and encourages harmonious, productive
cooperation between generations-with the conscious inclusion.
of people with disabilities.
At the Porsche AG Group, the focus is on people. Knowing that
every employee applies their unique skills to further the inter-
ests of the company, the Porsche AG Group is actively commit-
ted to diversity and inclusion in the workforce.
Strategy field
Diversity
As the use of circular materials often benefits the carbon
footprint of the material as well, the strategy field of a circular
economy also contributes to the decarbonization goals of the
Porsche AG Group.
at Porsche's locations. At its vehicle production sites, the
Porsche AG Group is pursuing its long-term vision of a Zero
Impact Factory-vehicle production with a minimal negative
environmental impact. The vehicle production locations in
Stuttgart-Zuffenhausen and Leipzig have already made progress
towards this vision.
Furthermore, the strategy field encompasses recycling projects
The strategy field comprises multiple areas of action.
Cross-functional teams work on various areas of focus within
these, such as closed-loop concepts for high-voltage batteries,
the use of circular materials in Porsche vehicles, sustainable
product design, the avoidance of plastic waste, and ways of
recycling vehicle components.
In cooperation with the Volkswagen Group, Porsche AG and
selected subsidiaries determine the computed volume of green-
house gas emissions, in tons of CO2 equivalents per vehicle, all
along the value chain using the Decarbonization Index (DCI)'.
→ Climate change mitigation
Strategy field
Circular Economy
Decarbonization
Building on its electrification strategy, the Porsche AG Group is
striving to further decarbonize the average CO2 emissions of the
products and processes. The Porsche AG Group has anchored
this goal in its strategy for the entire life cycle of the vehicles.
In addition to the CO2 emissions caused by vehicle production,
the Porsche AG Group considers the assumed emissions in its
upstream vehicle supply chain and during a vehicle's down-
stream service life, right up to disassembly for recycling at the
end of the vehicle's life.
It is focusing on electric mobility. The Porsche AG Group is
planning for more than 80% of the vehicles it delivers in 2030
to be fully electric-depending on customer demand and the
development of electric mobility in individual regions of the
world. Porsche entered this era back in 2019 with the all-elec-
tric Taycan. The all-electric Macan will join its product range in
2024.
The product portfolio represents the core of the Porsche AG
Group's activities. The Porsche AG Group is shaping the mobility
of the future with innovative products, technologies and attrac-
tive services. These include future-oriented drive concepts that
are designed to cause significantly lower CO2 emissions.
Decarbonization
Strategy field
CO₂
STRATEGY FIELDS
The Porsche AG Group also aligns the six fields in the Sus-
tainability Strategy 2030 and its related activities with the
Sustainable Development Goals (SDGs) from the 2030 Agenda
of the United Nations. These help the Porsche AG Group as an
orientation for its own business activities. They indicate how
economic progress, social justice, and environmental compati-
bility can be reconciled. → Sustainability management
Where currently possible, the Porsche AG Group unites all six
fields of action in the Sustainability Strategy 2030 with clear
objectives, indicators, and measures. Key ESG indicators, such
as the Decarbonization Index (DCI), already affect on the remu-
neration of members of the Executive Board.
It is important to the Porsche AG Group that raw materials are
used responsibly and sparingly and that its vehicles and the
materials used to build them have long service lives. As such,
the strategy field of a circular economy is a key element of the
Group's sustainability strategy. Closed-loop concepts are to be
realized at various points along the value chain and existing ones
are to be expanded and improved. Porsche AG endeavors to use
sustainable materials and, where technically possible, reduce
the percentage of primary raw materials and establish closed
raw material cycles.
Circular economy
Partner to society
CO₂
To monitor the implementation of the requirements of the
German Supply Chain Due Diligence Act (LkSG), Porsche AG
conducted "compliance monitoring" in selected departments
of Porsche AG and in selected subsidiaries in the reporting
year-with reviews being carried out in connection with human
rights, for example. Additionally, the first report on compliance
with corporate duties of care at Porsche AG has been prepared
and published for the German Federal Office for Economic
Affairs and Export Control.
In the reporting year, Porsche AG further expanded the ESG
management system and rolled out a centralized control and
monitoring system for ESG data. Additionally, Porsche AG
continued to harmonize its dedicated compliance management
systems. Among other things, the Code of Conduct for Business
Partners of Porsche AG and the Volkswagen Group have been
consolidated and compliance improvement measures have
been standardized.
ties. In the strategy field of governance and transparency, the
Porsche AG Group is therefore working continuously to increase
transparency and responsible corporate governance.
The Porsche AG Group sees acting and doing business with
integrity as an essential foundation for all business activi-
Governance and Transparency
Strategy field
Specifically, by 2030, Porsche AG' aims to comply with the
strictest internal quality standards relating to sustainability with
90% of the production material it purchases, which is gener-
ally sourced from direct suppliers with a sustainability rating
(S-rating). This means that 90% of direct suppliers of produc-
tion materials are expected to achieve an S-rating in the highest
category (A) by this point in time. In the reporting year, the
degree of fulfillment was already 88.3%. → Sustainability, work-related
rights and equal treatment and opportunities in the value chain
Porsche AG on behalf of the Porsche AG Group-is also
involved in the automotive industry dialog on the German
National Action Plan for Business and Human Rights (NAP),
which promotes decent working conditions for people.
As the product portfolio expands and technological diversity
grows, so does the importance of the supply chain to the
sustainability strategy. As such, the Porsche AG Group con-
stantly trains its strategic focus on the sustainability-driven
management of its relationships with direct suppliers. The
Porsche AG Group wants to ensure that direct suppliers practice
a more ecologically sustainable procurement, adhere to human
rights standards, implement social employment practices, and
practice responsible resource management. In this context,
The Porsche AG Group's corporate responsibility does not end
at the factory gates-it extends across the entire value chain,
which encompasses more than 1,700 direct suppliers of pro-
duction materials and 5,700 direct suppliers of nonproduction
materials.
Supply Chain Responsibility
Strategy field
The strategy field has access to the company fund, which was
set up in 2021, to finance project ideas of the Porsche AG
Group. As an example, the fund's resources were used to realize
initiatives from the "Join the Porsche Ride" program in Brazil,
Chile, Saudi Arabia, and China in the reporting year. The fund
was also used to finance the further expansion of the place-
ment platform "Porsche hilft", which aims to promote voluntary
engagement on the part of employees.
Ever since 2020, the Partner to Society strategy field has been
in the hands of a dedicated core team comprising representa-
tives from all relevant organizational units of the Porsche AG
Group, who meet about every six weeks. The team defines a
general strategy for the strategy field, advances the corporate
citizenship projects, and networks with the relevant depart-
ments. In the reporting year, the team's work focused on
designing a new general project aimed at pooling the interna-
tional social engagements of the Porsche AG Group even more
effectively and bolstering them further. The project was still in
the start-up phase at the end of the reporting year.
Consequently, the Porsche AG Group has its sustainability
strategy field named Partner to Society. In this strategy field, the
Porsche AG Group actively supports corporate citizenship proj-
ects that benefit people whose social environment is directly
or indirectly related to the Porsche AG Group-be that its own
locations or direct suppliers and business partners. Young or
disadvantaged people should receive strategic support and
education to enable them to make permanent improvements to
their living situation.
92
↑↓ ↑ 0 |||
91
Sustainability Sustainability at Porsche
The Porsche AG Group bases its calculation of the DCI on, among other things,
assumptions that are founded on statistics. The Porsche AG Group uses mod-
el-based calculations to obtain the DCI based on premises and values specific to
the Porsche AG Group as well as data from recognized LCA databases. A vehicle
is assumed to have a total mileage of 200,000 km. Vehicle servicing is not
factored into the calculation. Inaccuracies cannot be ruled out of the modeling.
The goal of balance-sheet CO₂ neutrality along the entire newly produced
vehicle value chain in 2030 is founded on averaging and currently also involves
necessary offsetting.
'The Porsche Strategy 2030 focuses on the four stakeholder dimensions:
customers, society, employees, and investors. The Porsche AG Group aims to
become more sustainable as part of its Strategy 2030. Sustainability is one of
six cross-cutting strategies, together with Customer, Products, Digitalization,
Organization, and Transformation.
Governance and transparency
Supply chain responsibility
Diversity
The Sustainability Strategy 2030 sums up the key challenges
facing the Porsche AG Group in six strategy fields.
Mobility, and therefore the automotive industry, plays a key role
in the transformation of business towards sustainability and
the related fight against climate change. Besides Porsche's own
vehicle production, its entire value chain is an integral compo-
nent of the Porsche Strategy 2030'.
To the Porsche AG Group, sustainability is not a short-lived
trend; but enshrined as a central cross-cutting issue in the
Porsche Strategy 2030.
101 Environmental management
ENVIRONMENT
101
Stakeholder dialog and materiality
94
90 Strategy fields
SUSTAINABILITY AT PORSCHE
90
SUSTAINABILITY
550 Spyder
56
19
88
↑↓ ↑ ||
87
Ibrahim Aslan, Knut Lofski, Dr. Hans Peter Schützinger, Dr. Christian Dahlheim, Nora Leser, Stefan Schaumburg, Micaela le Divelec Lemmi,
Harald Buck, Dr. Wolfgang Porsche (Chairman of the Supervisory Board), Jordana Vogiatzi (Deputy Chairman of the Supervisory Board),
Dr. Hans Michel Piëch, Melissa Di Donato Roos, Wolfgang von Dühren, Dr. Ferdinand Oliver Porsche, Dr. Arno Antlitz, Hauke Stars,
Carsten Schumacher, Hans Dieter Pötsch, Akan Isik, Vera Schalwig
From left to right:
The Supervisory Board 2023 of Porsche AG
MEMBERS OF THE SUPERVISORY BOARD
Chairman of the Supervisory Board
Dr. Wolfgang Porsche
Zuffenhausen, February 28, 2024
The 2023 financial year was extremely challenging. The Super-
visory Board wishes to express its gratitude and recognition to
the Executive Board and all employees for the work they have
done, especially given the context. Through their extraordinary
commitment and passion for innovation, not to mention the
sense of responsibility that is characteristic of Porsche, all
employees and members of the Executive Board did their part
to drive the success of the company. On behalf of the Super-
visory Board, I also wish to thank you, dear shareholders, for your
loyalty and support in 2023. Without all of you, this company
would be but a dream.
104 Energy and climate change adaptation
108
110
111
Selected sustainability objectives have been a criterion in the
remuneration system for the Executive Board since the 2023
reporting year. The Executive Board has implemented the same
policy for the management of Porsche AG and selected national
subsidiaries. Remuneration report
The Porsche AG Group considers all the aspects of sustainabil-
ity: economic, environmental, and social. The Porsche AG Group
does not see economic success, environmental awareness,
and social responsibility as contradictions in terms. Quite the
opposite. They unite to form a guiding principle based on doing
business in a future-proof way.
SUSTAINABILITY AT PORSCHE
90
↑↓ ↑ ||
89
Political engagement and lobbying activities
131
129 Management of relationships with suppliers including payment practices
GOVERNANCE
129
All the different aspects of the topic are considered: the aspects
Environment (E), Social (S), and Governance (G)-ESG-
describe the basic principles of sustainable business. In doing
so, the Porsche AG Group wishes to embrace its responsibility,
bolster sustainable and value-creating growth, and reduce its
environmental footprint continuously. In the process, it remains
focused on the impact of its business activities and the expec-
tations of its stakeholders.
Economic, social, and cultural rights as well as civil and political rights of communities
Personal safety of consumers and/or end users
126
119 Working conditions for own workforce
Partner to society
115
SOCIAL
Waste
112
115
Biodiversity and ecosystems
Water and marine resources
Pollution and substances of concern
127
Porsche stakeholders
Customers and busi-
ness partners
Residents and
communities
Cooperation
and interest-sharing
Dialog options for communication
Consultation
Standardization
Standardization with guidelines
and codes
Stakeholder management-a holistic approach
Even the members of the Porsche Sustainability Council
took part in the survey. They also evaluated the methodology of
the survey and the detailed results in a separate workshop and
considered their overall assessment of the stakeholder survey.
Some 200 people took part in the open online survey. Over
3,000 participants answered the questions in the panel survey
for each region. Overall, around 37% of feedback came from
European markets, around 32% from North America, and around
31% from Asia. Alongside direct stakeholders, the participants
included representatives from the media, nongovernmental
organizations, academia, government, politics, and other stake-
holder groups.
The Porsche AG Group worked with internal and external experts
to select the topics for this anonymous, international online sur-
vey in such a way that they reflected the known requirements of
the Corporate Sustainability Reporting Directive (CSRD). For the
sake of continuity, the Porsche AG Group also included topics
from commonly used reporting standards and the Sustainability
Strategy 2030-for a total of 27 subject areas. The survey con-
sisted of an open survey in the online newsroom and a strategic
survey in the regions of Europe, North America, and Asia. It was
available in German, English, and Mandarin.
Since 2013, the Porsche AG Group has asked its stakeholders
about their views and expectations on sustainability issues in a
structured biennial format. This survey provides the Porsche AG
Group with suggestions and inspiration and is factored into
the materiality assessment process. A stakeholder survey was
carried out in the year under review.
Stakeholder survey
In 2019, Porsche AG and the Volkswagen Group became the
first automobile manufacturers to join the Value Balancing
Alliance. Porsche AG has also been actively involved in the
automotive industry dialog on the German National Action Plan
for Business and Human Rights (NAP) since 2020. Among other
initiatives in the reporting year, Porsche AG actively helped to
draw up international quality and action recommendations for
responsible lithium mining.
Moreover, Porsche AG has been a member of the German
Environmental Management Association (B.A.U.M.) since 2016.
Porsche AG joined the European Business Ethics Network
Deutschland (DNWE) in 2017 and has been a signatory to the
state of Baden-Württemberg's WIN Charter for sustainable
business ever since, marking its commitment to entrepreneurial
responsibility.
its commitment to the UN Global Compact's ten principles
of corporate sustainability by joining the UN Global Compact
Network Germany.
In 2022, Porsche AG joined the UN Global Compact, the world's
largest and most important sustainable and responsible cor-
porate governance initiative. In 2023, Porsche AG underlined
> Value Balancing Alliance
> WIN Charter for sustainable business
> German Business Ethics Network
> German Environmental Management Association
UN Global Compact
>
List of associations
The Porsche AG Group promotes economic, environmental, and
social topics through its involvement in networks, sustainability
initiatives, and working groups. This is also an integral part of
the stakeholder dialog.
Trusting cooperation with partner
programs, memberships, and
multistakeholder initiatives
Materiality
→ GRI 3-1
Documentation and communication
the environment and society
Material in terms of impacts on
Materiality matrix
10
17
Materiality of the impact on the environment and society ("inside-out" perspective)
98
↑↓ ↑ |||
46
97
Sustainability Sustainability at Porsche
Memberships and networks
The Porsche AG Group compiled the results of this assess-
ment in a materiality matrix. The managers of the departments
involved then reviewed and validated the positioning of the
topics in a materiality workshop. In this context, the topics
were aggregated from 27 subject areas into 22 based on their
content. In the final stage, the Works Council and Porsche Sus-
tainability Council commented on the positioning of the topics.
Likewise, their recommendations were factored into the final
materiality matrix. The final matrix was confirmed and ultimately
approved by the Environment and Sustainability Steering Group
and Committee and by the Executive Board.
1) Concerning the impacts of business activities on a topic
("inside-out" perspective), there were points dependend on
severity, area of impact, probability of occurrence, and (ir)
reversibility in the case of negative impacts.
In accordance with CSRD requirements, the departments
assessed the impacts, risks and opportunities, of their topics
using a points-based system. Above a certain threshold, a
topic is considered material:
Codetermination and influencing across vari-
ous channels (e.g. Sustainability Council]
Participation
Derivation of strategic measures and targets
in accordance with the corporate strategy
Strategy
Systematic documentation and evaluation
of stakeholder interests (e.g. materiality
assessment]
Evaluation
The assessment was based on the principle of double materi-
ality. According to this principle, a topic is considered material
as soon as either the environmental and social impact of the
Porsche AG Group ("inside-out" perspective) or the risks and
opportunities for the financial situation of the Porsche AG Group
("outside-in" perspective) can be considered material. The
Porsche AG Group has evaluated these risks and opportunities
in a gross assessment, which means it has considered the risks
without prevention or mitigation measures. In this assessment,
the Porsche AG Group also accounted for the results of its
stakeholder survey as well as the opinions of its internal risk
managers.
The Porsche AG Group performed a new materiality assessment
in 2023. The assessment evaluated 27 potentially material
topics. The multistage process was aligned with the future
specifications of the Corporate Sustainability Reporting Direc-
tive (CSRD). It was primarily based on an objective assessment
of the sustainability topics by the relevant departments of the
Porsche AG Group. Additionally, the opinions of stakeholders
were considered as additional validation.
Planning and controlling
2) For the financial impact of risks and opportunities on its
business ("outside-in" perspective), the Porsche AG Group
took their financial value and probability of occurrence into
consideration.
The most important stakeholders of the
Porsche AG Group as determined by internal
analyses.
In the interests of a dialog with international stakeholder groups
across all sites, the Porsche AG Group developed a universally
applicable set of acceptance communication guidelines in 2023
and utilized them in selected markets for the first time. These
guidelines aim to facilitate harmonized, regionally appropriate
communication with local stakeholders. The Porsche AG Group
intends to continue updating these guidelines in cooperation
with experts from the sales regions.
Stakeholders can contact the department responsible for
sustainability directly using the email address sustainability@
porsche.de.
The Porsche AG Group has a complete stakeholder management
system designed to identify the expectations of its groups of
stakeholders systematically and derive key social trends from
these. The Porsche AG Group considers the interests and points
of view of various stakeholders continuously and factors them
into its strategic plans and business decisions, and sustain-
ability is no exception. In turn, the stakeholders can learn more
about the current and future activities of the Porsche AG Group
as well as the requirements and general conditions.
The business activities of the Porsche AG Group touch on the
lives and interests of many people around the world (stake-
holders). The Porsche AG Group consults and communicates
with various stakeholder groups regularly. The consultation
and engagement are continuous and regular because an open,
transparent exchange of information and arguments paves the
way for mutual understanding and acceptance. A beneficial,
goal-driven dialog is the only way for the Porsche AG Group to
build and maintain lasting relationships of trust with its direct
dialog partners.
Stakeholder communications and dialog
The Porsche AG Group performs regular internal analyses to
identify its most important stakeholder groups. As such, the
Porsche AG Group considers the following as key players:
residents and communities, customers and business partners,
investors and analysts, media, employees, policymakers and
associations, nongovernmental and charitable organizations,
scientific community and experts, and competitors.
Identifying and involving stakeholders in a dialog is important to
the Porsche AG Group when it comes to fulfilling all the different
aspects of social responsibility. A stakeholder is any individual or
group with an interest in a decision or activity of the Porsche AG
Group because they have a direct or indirect influence over its.
actions or are themselves affected by them.
STAKEHOLDER DIALOG AND MATERIALITY
Stakeholders of the Porsche AG Group
→ GRI 3-1
94
93
Sustainability Sustainability at Porsche
↑ ↓ ↑ 0 |||
Policymakers and
associations
22
Media
NGOs/nonprofit
organizations
analysts
Investors and
Competitors
EO
Scientific community
and experts
'Within the Porsche AG Group, only Porsche AG procures production materials.
PORSCHE
Employees
ACKNOWLEDGMENT
Selected stakeholder management tools
The Porsche AG Group believes it is important for people to talk
to one another, not about one another. By changing perspec-
tive, Porsche AG Group aims to understand other positions,
overcome challenges through cooperation, and build long-term
partnerships. It does this by using different media and dialog
formats as well as various internal and external communication
channels.
The Porsche AG Group establishes and maintains direct contact
to maintain a continuous dialog with its stakeholders. The
Porsche AG Group further intensified its active dialog with
its stakeholder groups in the year under review. Information
about the Porsche AG Group can be found, for example, in the
Porsche magazine "Christophorus" and the online newsroom, on
its LinkedIn, X and Instagram channels, on the web-based TV
channel "9:11 Magazine", in the "9:11. Porsche. Podcast" audio
format, and on the company website.
The Porsche Sustainability Council in 2023: Lucia Reisch, Adnan Amin, Raffaela Rein, and Sarah Jastram (FLTR) → Sustainability organization
External channels of Porsche's public relations
People in the vicinity can lodge complaints using the email
address nachgefragt@porsche.de or by calling a dedicated phone
number. In the year under review, Porsche AG was able to
investigate a two-digit number of such complaints, process
them, and find permanent resolutions. Residents near the
Stuttgart-Zuffenhausen site complained about the noise caused
by construction work in individual cases. In all cases, however,
the subsequent measurements were within the legal limits for
noise emissions.
96
↑↓ ↑ ||
95
Sustainability Sustainability at Porsche
The complaints process at Stuttgart-Zuffenhausen has been
audited as part of its recertification under ISO 14001. It is
set to be expanded to Weissach and Leipzig starting in 2024.
This process optimization will enable Porsche AG and selected
subsidiaries to document and evaluate all known concerns
systematically, and to take and document immediate action if
necessary. The corresponding contact details are visible and
accessible to the public.
The Porsche AG Group welcomes questions, suggestions, and
concerns from internal and external stakeholder groups alike.
The Porsche AG also advises its subsidiaries on how to commu-
nicate with their direct stakeholders. The Politics and Society
department and the Construction, Environment, and Energy
Management office have set up their own complaints manage-
ment system as a centralized point of contact for complaints
and suggestions.
Acceptance communication and
complaints management
Regular works and departmental meetings, information events
for employees, specialized focus weeks, and digital events are
also used for internal communication purposes. For example,
employees from Procurement at Porsche AG took a closer look
at supply chain sustainability in a focus week in 2023. Formats
like these help employees voice their concerns and speak with
the experts directly.
For internal communication, Porsche AG and selected subsidiar-
ies use the digital Carrera media, some of which is also printed.
Employees can find information on current developments at
the Porsche AG Group, including sustainability, on the Carrera
Online intranet pages and in the Carrera Magazine. Porsche AG
completely overhauled and redesigned its "Sustainability"
intranet page in the year under review.
The Porsche AG Group released "Perspectives on Sustainability",
a series of interviews focusing on sustainability, in its online
newsroom in 2023. In these interviews, employees discuss
their personal contributions to more sustainability within the
Porsche AG Group, offering technical and personal insights in
the process.
Porsche AG aims to continue cultivating its regular, direct dialog
with residents and is thus planning further dialog formats in
addition to its complaints management system. For example,
the year under review saw the start of conceptual planning for
the resumption of information events for residents at selected
company locations, which were held regularly until 2020.
the audio format
B
O-
Instagram, Facebook, X, LinkedIn
the web-based TV channel
9:11 Magazine
(▷)
the platform for journalists
and fans
the Porsche magazine
Social media channels
Online newsroom
Christophorus
09:11. Porsche. Podcast
No conflicts of interest on the part of members of the
Supervisory Board were reported or became evident in the
reporting year.
The joint Declaration of Conformity by the Executive Board
and Supervisory Board is available at all times on the web-
site https://investorrelations.porsche.com/en/corporate-governance/.
For further disclosures regarding the implementation of the
recommendations and suggestions of the German Corporate
Governance Code, please refer to the Corporate Governance
Declaration.
CONFLICTS OF INTEREST AND HOW THEY
ARE HANDLED
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
100%
4 of 4
100%
4 of 4
Dr. Hans Peter Schützinger
100%
4 of 4
Dr. Ferdinand Oliver Porsche
75%
3 of 4
Hans Dieter Pötsch
100%
4 of 4
Dr. Hans Michel Piëch
100%
4 of 4
Melissa Di Donato Roos
100%
100%
4 of 4
100%
4 of 4
Micaela le Divelec Lemmi
To our shareholders Report of the Supervisory Board
81
↑↓ ↑ 0 |||
82
100%
4 of 4
100%
8 of 8
100%
4 of 4
Harald Buck
100%
4 of 4
Ibrahim Aslan
100%
4 of 4
8 of 8
4 of 4
Attendance
in %
Audit Com-
mittee
Attendance
in %
Presidential
Committee
in %
Plenum
Attendance
Committee meetings
Supervisory Board meetings
Hauke Stars
100%
Wolfgang von Dühren
100%
Dr. Christian Dahlheim
The Supervisory Board met in full four times in the financial
year. Additionally, two circular resolutions took place outside of
regular meetings. Overall, the rate of participation in Supervisory
Board (plenary) meetings in 2023 was a pleasing 96%. With
the exception of one meeting which a participant was unable to
attend, the committees of the Supervisory Board always met
with all members in attendance.
Aside from the regular reports, the Executive Board submitted
regular, timely, and comprehensive reports to the Supervisory
Board on all material aspects of relevance to the company and
transactions requiring approval. This made it possible to address
individual topics specifically, such as the progress of individual
vehicle projects.
Key topics discussed in the plenary session also included the
development of business, strategic matters, operative planning
including financial, investment, and human resource planning,
as well as matters relating to profitability-on a Group level
and for key subsidiaries. In particular, the subsidiaries that were
reported on intensively included Porsche Financial Services
GmbH, Porsche Consulting GmbH, Porsche Engineering Group
GmbH, Porsche Lifestyle GmbH & Co. KG, MHP Management
und IT-Beratung GmbH (MHP), and Porsche Werkzeugbau
GmbH. This enabled the Supervisory Board to paint a complete
picture.
Due to the regular reporting by the Executive Board, the Super-
visory Board was informed in full, promptly, and transparently at
all times, both verbally and in writing. The necessary documents
were made available in full to the members of the Supervisory
Board and the relevant committees in good time.
The Chairman of the Supervisory Board was in close, trusting,
and regular contact with the Executive Board, especially the
Chairman of the Executive Board, where they discussed matters
of strategy, planning, and business development. Without delay,
the Chairman of the Executive Board notified the Chairman
of the Supervisory Board of significant events of relevance to
the assessment of the company's position and development,
as well as to the running of the company, and the Chairman of
the Supervisory Board, like the board as a whole, was heavily
involved in the strategic considerations and decision-making
processes of the Executive Board. The report by the Chairman
of the Executive Board was supported by regular reports from
the members of the Executive Board responsible for Finance and
Sales. The Supervisory Board dedicated considerable time to
the reports of the Executive Board.
In the 2023 financial year, the Supervisory Board performed
its tasks and duties imposed upon it in accordance with the
law, the Articles of Association, and the Rules of Procedure, and
focused closely on the position and prospects of Porsche AG.
In doing so, the Supervisory Board monitored the Executive
Board as it conducted business and advised it regularly on all
key matters, but also with regard to the recommendations and
requirements of the German Corporate Governance Code.
METHODS OF THE SUPERVISORY BOARD AND
MEETINGS OF THE SUPERVISORY BOARD AND
COMMITTEES
in a very strong position with consolidated sales revenue of
€40.53 billion and profit before tax of €7.375 billion. In light
of the successful 2023 financial year and a corporate strategy
geared towards sustainable growth, the Supervisory Board
believes that Porsche AG is in an excellent position to face the
ongoing transformation of the automotive industry.
in its key performance indicators. The Porsche AG Group is
As you, dear shareholders, all know, Porsche AG reached another
historic milestone in the form of its IPO on September 29, 2022.
In doing so, Porsche AG has attained greater entrepreneurial
freedom and flexibility, and is able to decide for itself where
to focus its future corporate and product strategies. This will
enable the company to operate with greater speed and focus,
which is more important than ever in a dynamic and challenging
global landscape. Last year, Porsche AG systematically played
to its strengths on the market and enjoyed a successful year
in spite of the major geopolitical crises. This is also reflected
A strong season was also had by the new works team Porsche
Penske Motorsport, which claimed second place for Porsche
in the manufacturers classification in the hybrid prototype
Porsche 963 at the IMSA WeatherTech SportsCar Champion-
ship, the latest in a series of victories including a 1-2 victory on
the legendary Indianapolis Motor Speedway. Other experiences
have been less successful, however. The Porsche 963 finished
ninth at the 24 Hours of Le Mans in 2023. In the GTE-Am cate-
gory, the Porsche 911 RSR belonging to the customer team GR
Racing took third place on the podium.
Like its vehicles, the company has always enjoyed close ties
with motorsport, and it was able to celebrate more success
on the racetrack in 2023. At the London E-Prix, the TAG Heuer
Porsche Formula E Team ended its most successful season so
far with four victories in the ABB FIA Formula E World Cham-
pionship. The title of world champion was claimed by Jake
Dennis from the Porsche customer team Avalanche Andretti in
the Porsche 99X Electric, which was developed in Weissach.
The Porsche works driver Thomas Preining became the DTM
champion on the final weekend in Hockenheim as far ahead of
time as the team Manthey EMA won the manufacturers' title
for Porsche at the DTM.
At Porsche, innovative concept vehicles have always set the
course for the future. The sports car manufacturer is con-
tinuing this tradition with its latest concept study: Mission X.
The two-seater with thrilling lines celebrated its launch on
a special date on June 8, 2023: it was the main attraction
on the eve of the opening of the special exhibition entitled
"75 Years of Porsche Sports Cars" at the Porsche Museum in
Stuttgart-Zuffenhausen.
30 years after the unveiling of the Boxster concept study,
Porsche brought the most powerful version of the mid-engine
roadster to date to the market: the new Porsche 718 Spyder RS.
It also completely overhauled the exclusive Cayenne SUV model
series in the reporting year.
Dear shareholders, Porsche AG has seized the opportunity pre-
sented by these challenges and managed to set new standards
with its products in 2023. The five millionth Porsche rolled off
the production line at its headquarters in Stuttgart-Zuffenhau-
sen and the company celebrated the 60th anniversary of the
iconic 911 with a special limited edition, the Porsche 911 S/T,
which is limited to 1,963 models.
In 2023, we remained true to our mission statement and fol-
lowed our dreams. And we did so in a world constantly beset by
new political and economic crises. Even our society and social
cohesion have been caught up in the changes to a consider-
able extent. Porsche AG continued to face major challenges in
the reporting period. In particular, the political frameworks for
the automotive industry are changing and its transformation
continues.
Exactly 75 years ago, Ferry Porsche turned his dream of a sports
car into reality: he and his team built the Porsche 356 "No. 1"
Roadster. This was both the genesis of a legendary brand and
the opening chapter of both an exemplary success story and the
Porsche legend. We joined our employees and, in particular, our
customers in marking this anniversary in 2023 with commensu-
rate pride and gratitude.
Dear Friends of the Company,
Dear Sir or Madam,
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT (PURSUANT TO SECTION 171, PARA. 2,
OF GERMANY'S STOCK CORPORATION ACT (AKTG))
REPORT OF THE SUPERVISORY BOARD
00
80
If, due to exceptional circumstances, a member of the Super-
visory Board or a committee was unable to attend a meeting,
they were able to familiarize themselves with the items on the
meeting's agenda with the preparatory documents. In this case,
they cast their vote in writing to participate in resolutions. As in
previous years, digital documents ensured that meeting prepa-
rations and procedures were efficient.
The following table presents the individual Supervisory Board
members' participation in the plenary sessions and committee
meetings that took place in the reporting year:
Supervisory Board meetings
Committee meetings
100%
8 of 8
100%
4 of 4
Dr. Arno Antlitz
87.5%
7 of 8
75%
3 of 4
Jordana Vogiatzi (Deputy Chairman)
100%
4 of 4
8 of 8
4 of 4
Dr. Wolfgang Porsche (Chairman)
in %
mittee
in %
Attendance
Audit Com-
Attendance
Presidential
Committee
Attendance
in %
Plenum
100%
The Supervisory Board has clear rules designed to avoid poten-
tial conflicts of interest when its members offer advice and
pass resolutions, and on how potential conflicts of interest are
to be dealt with in exceptional cases. In particular, the Super-
visory Board's Rules of Procedure require every member of the
Supervisory Board to disclose a potential conflict of interest to
the Chairman of the Supervisory Board immediately. Further-
more, depending on their scale and reach, conflicts of interest
can result in the exclusion of the Supervisory Board member in
question from voting on and potentially even consulting on the
relevant agenda item.
4 of 4
Akan Isik
- Harald Buck
-Jordana Vogiatzi
Hauke Stars
Dr. Wolfgang Porsche (Chairman)
Members of the Mediation Committee:
Mediation Committee
- Hauke Stars
- Dr. Arno Antlitz
Members of the Nomination Committee:
- Dr. Wolfgang Porsche (Chairman)
The Nomination Committee is staffed exclusively by representa-
tives of the shareholders and has the task of proposing suitable
candidates to the Supervisory Board for its proposals to the
Annual General Meeting for the election of Supervisory Board
members to represent the shareholders.
Nomination Committee
- Harald Buck
Nora Leser
Carsten Schumacher
Dr. Ferdinand Oliver Porsche
Micaela le Divelec Lemmi
Dr. Christian Dahlheim (Chairman)
Members of the Audit Committee:
The Audit Committee monitors the accounting process, the
effectiveness of the internal control system, the risk manage-
ment system, the internal audit system, as well as the audit of
the financial statements, especially the selection and indepen-
dence of the auditor, the quality of the audit, and the additional
services performed by the auditor.
Audit Committee
Carsten Schumacher
Harald Buck
-Jordana Vogiatzi
Related Party Committee
In the cases mandated by law, the Related Party Committee
decides on the approval of certain transactions between the
company and its related parties.
Members of the Related Party Committee:
- Dr. Hans Michel Piëch
Immaterial from both
perspectives
The recommendations and suggestions of the German Corpo-
rate Governance Code are important parameters for the actions
and methods of the Supervisory Board. In the Declaration of
Conformity of December 2023, the Executive Board and Super-
visory Board explained the extent to which the recommenda-
tions of the German Corporate Governance Code have been fol-
lowed since the publication of the last Declaration of Conformity
in December 2022, and will be followed in the future.
DECLARATION OF CONFORMITY 2023
The Supervisory Board reviewed the dependent company report
thoroughly and raised no objections to the declaration of the
Executive Board at the end of the dependent company report.
Furthermore, the Supervisory Board adopted the report of the
Supervisory Board, the Corporate Governance Declaration, the
remuneration report, and its proposed resolutions on agenda
items of the 2024 Annual General Meeting. Pursuant to section
120a, paragraph 4, of the AktG, the remuneration report will be
submitted to the Annual General Meeting for formal approval.
Based on the conclusive outcome of the audit by the Audit
Committee and its own examination, the Supervisory Board
accepted the results of the audit by the auditor. It concluded
that it had no objections and formally approved the annual
financial statements and combined management report,
including the nonfinancial report, as prepared by the Executive
Board. As such, the annual financial statements of Dr. Ing. h.c.
F. Porsche AG for 2023 have been adopted. On this basis, the
Supervisory Board accepted the Executive Board's proposed
appropriation of profit.
86
85
To our shareholders Report of the Supervisory Board
The Audit Committee and the Supervisory Board examined
these documents thoroughly and discussed them in depth in
the presence of the auditor, who reported on the findings of the
audit, especially the key audit matters and each audit proce-
dure, including the conclusions, and was on hand to answer any
additional questions and provide further information.
For preparation, the members of the Supervisory Board had
extensive documentation at their disposal, including the annual
financial statements, consolidated financial statements, and
the combined management report, including the nonfinancial
report and proposed appropriation of profit. They were also
provided with the dependent company report prepared by the
Executive Board, the Corporate Governance Declaration, the
remuneration report, the audit reports of EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft for the annual financial state-
ments of Dr. Ing. h.c. F. Porsche AG, the consolidated financial
statements, including the combined management report, the
audit report for the dependent company report, and drafts of the
reports of the Supervisory Board and the Audit Committee.
In its meeting on February 28, 2024, the Supervisory Board
dealt with the annual financial statements of the company, the
consolidated financial statements, and the combined manage-
ment report, including the nonfinancial report and proposed
appropriation of profit, each of which has received an unqual-
ified opinion from the auditor. Furthermore, the Supervisory
Board dealt with the dependent company report, the Corporate
Governance Declaration, and the remuneration report.
-Hauke Stars
The Executive Board and Supervisory Board have prepared a
remuneration report for the year under review in accordance
with section 162 of the AktG. Pursuant to section 162, para-
graph 3, of the AktG, the remuneration report was examined by
the auditor in order to verify whether the mandatory disclosures
required by section 162, paragraph 1 and 2, of the AktG had
been made. The auditor also audited the content beyond the
minimum legal requirements. The auditor confirmed that the
remuneration report is consistent with the accounting provi-
sions of section 162 of the AktG in all material aspects.
The annual and consolidated financial statements of Dr. Ing.
h.c. F. Porsche AG, including the combined management report
for the 2023 financial year, have been duly audited by Ernst &
Young GmbH Wirtschaftsprüfungsgesellschaft, Stuttgart, and
awarded an unqualified opinion.
AUDIT OF THE ANNUAL AND CONSOLIDATED
FINANCIAL STATEMENTS
Additionally, the representatives of shareholders and employees
normally met for separate advance discussions in the run-up to
Supervisory Board meetings.
The work of the Audit Committee centered on the annual and
consolidated financial statements, the risk management system
including the effectiveness of the internal control system, as
well as the internal audit system and the work of the company's
compliance organization. The Audit Committee also dealt with
the quarterly information and half-yearly financial report of the
Porsche AG Group. In doing so, it focused on monitoring the
accounting, the accounting process, and the inspection thereof
by the auditor. It also discussed the assessed audit risk, audit
strategy, audit plan, and audit outcome with the auditor.
The Presidential Committee focused on advising and rec-
ommending resolutions for the plenary session in particular.
Personnel-related matters concerning the Executive Board
were discussed thoroughly in advance. As such, the Presiden-
tial Committee handled the extensions of the Executive Board
members' service contracts, contractual issues other than
remuneration, approval of ancillary activities, and the adapta-
tion of rules in connection with fringe benefits. Additionally, the
Presidential Committee addressed the long-term succession
plan in depth in several meetings.
The Presidential Committee met eight times in the 2023
financial year. The Audit Committee met four times in the
2023 financial year. The Nomination Committee, the Mediation
Committee, and the Related Party Committee did not meet in
the reporting year.
FREQUENCY OF MEETINGS AND FOCAL POINTS
OF THE COMMITTEES
- Akan Isik
Wolfgang von Dühren
- Hauke Stars
Micaela le Divelec Lemmi
Likewise, the report prepared by the Executive Board on the
relations between Dr. Ing. h.c. F. Porsche AG and affiliated
enterprises according to section 312 of the AktG (dependent
company report) for the period from January 1 to Decem-
ber 31, 2023, was examined by the auditor and awarded the
following opinion: "Based on our audit performed in accordance
with professional standards and our professional judgment, we
confirm that the factual statements contained in the report
are correct, and the company's consideration concerning legal
transactions stated in the report was not excessive."
100%
- Dr. Arno Antlitz
Members of the Presidential Committee:
As a rule, the members of the Supervisory Board completed the
necessary training and development courses for their duties
Although the members of the Executive Board participated
in meetings of the Supervisory Board and its committees,
the Supervisory Board frequently met without the Executive
Board too.
The virtual meeting formats introduced during the pandemic
have gradually been replaced by meetings in person. Despite
increasingly sophisticated videotelephony technology, the
Supervisory Board believes that physical gatherings-espe-
cially with regard to plenary sessions-should be the method
of choice. Of the four plenary sessions in 2023, all meetings
were held in person in Zuffenhausen and once at the location in
Weissach. At one meeting, the option to participate virtually was
made available in addition to the in-person meeting (to create
a hybrid meeting format). With regard to individual committee
meetings, the flexibility of such hybrid meeting formats has
proven itself once again. For instance, it has been possible to
hold Presidential Committee meetings, even ones convened at
short notice, efficiently and without requiring participants to
spend time traveling. Of the eight meetings of the Presidential
Committee, four were held in person and four were held virtually
as videoconferences. All four meetings of the Audit Committee
were held in person. None of the meetings of the Supervisory
Board or a committee took the form of a teleconference.
Carsten Schumacher
Stefan Schaumburg
Vera Schalwig
Knut Lofski
100%
4 of 4
100%
8 of 8
100%
100%
4 of 4
4 of 4
75%
3 of 4
100%
4 of 4
100%
4 of 4
Nora Leser
100%
4 of 4
on their own responsibility, with reasonable support from the
company. In particular, the company assists with the organiza-
tion of seminars. Moreover, the company offers education and
advanced training formats for the entire Supervisory Board.
On the day before the company's Annual General Meeting on
June 28, 2023, which was held as a public meeting for the first
time since the IPO, comprehensive training was provided on the
4 of 4
100%
rights and duties of the Annual General Meeting, as well as its
current legal framework. The concept of the Supervisory Board
training day was implemented for the first time on Novem-
ber 29, 2023. This interactive training course lasted several
hours and focused on capital market and insider trading laws.
On this day, the Supervisory Board also addressed self-assess-
ment and the implementation thereof for the Supervisory Board
of Porsche AG, as the first self-assessment since the IPO was
conducted in the 2023 financial year. More information about
the performance of the self-assessment and the evaluation of
the results is available in the Corporate Governance Declara-
tion at > https://investorrelations.porsche.com/en/corporate-governance/.
All training was provided with the assistance of internal and
external experts.
Supervisory Board and prepares its meetings. The Presidential
Committee prepares personnel-related decisions for the Super-
visory Board. Alongside the Executive Board, the Presidential
Committee also ensures that a long-term succession plan is in
place.
The Presidential Committee coordinates the work within the
Presidential Committee
In order to perform the duties incumbent on it, the Supervisory
Board has formed committees to assist it with its tasks. The
Supervisory Board committees have the following responsibili-
ties and members:
COMMITTEES OF THE SUPERVISORY BOARD
↑↓ ↑ |||
84
↑↓ ↑ 0 |||
83
To our shareholders Report of the Supervisory Board
The 2023 financial year did not see any personnel changes on
the Supervisory Board; the seasoned team worked together
successfully throughout the year.
- Dr. Wolfgang Porsche (Chairman)
PERSONNEL CHANGES ON THE SUPERVISORY
BOARD
Furthermore, on the basis of reporting by the Executive Board,
the Supervisory Board was continuously engaged with the
key official and judicial processes of the company, such as the
proceedings in connection with emissions.
In this context, other key subjects of consultation were the fur-
ther optimization of the Executive Board member remuneration
system and the setting of targets for the variable remuneration
of members of the Executive Board for the 2024 financial year.
The amounts of remuneration were also reviewed routinely as
part of the revision of the remuneration system. The revised
system of remuneration for members of the Executive Board is
to be proposed to the company's 2024 Annual General Meeting
for approval.
Moreover, HR matters in the Executive Board were a key subject
area of the advice offered by the Supervisory Board in the finan-
cial year ended. In addition to the structural matter of updat-
ing the executive organizational chart in light of Sajjad Khan
becoming a new member of the Executive Board responsible
for Car-IT as of November 1, 2023, the Supervisory Board dealt
with extending the appointment of members of the Executive
Board. The extensions of appointments to the Executive Board
were handled routinely by Albrecht Reimold (Production and
Logistics), Dr. Michael Steiner (Research and Development),
and Barbara Frenkel (Procurement). All three Executive Board
appointments were extended.
In connection with the financial and corporate matters, the
Supervisory Board examined strategic decisions relating to an
investment in a cell material manufacturer and the expansion
of the Cellforce Group (CFG). In this context, the Supervisory
Board approved additional finance for CFG to ensure the con-
tinued development of high-performance cells. The approval of
equity capital increases in individual national Porsche Finan-
cial Services companies made it possible to further expand
Porsche's global leasing and finance business. One focal point
of its regular dealings with the various Porsche subsidiaries was
the acquisition of more shares in MHP as well as its strategic
development. The Supervisory Board discussed the orienta-
tion and share structure of MHP at length and approved the
acquisition of the shares still being held by the cofounder. The
agenda also featured individual investments in innovative and
strategically important companies and start-ups. Additionally,
the Supervisory Board routinely addressed the financial strategy
and granted corresponding framework approvals. The refinanc-
ing of a line of credit at Volkswagen AG announced in connection
with the IPO was carried out successfully, and the Supervisory
Board approved the opening of a new, attractive line of credit
with a consortium of banks. At the end of the year, the Super-
visory Board was once again forced to consider at length the
direct and indirect effects of the Russia-Ukraine conflict on the
business operations of Porsche AG and its subsidiaries.
The work of the Supervisory Board focused on the audit and
approval of the annual and consolidated financial statements for
the 2022 financial year in February 2023, as well as the annual
adoption of the planning session. As part of planning session
PR72, the Supervisory Board addressed and approved the com-
pany's long-term plan, including product program, as well as the
vehicle projects of Porsche AG. Furthermore, the Supervisory
Board dealt thoroughly with the agenda, proposed resolutions,
and convocation of the Annual General Meeting in 2023.
At all of its meetings in the reporting period, the Supervisory
Board delved deeply into the core matters of the company, the
economic situation of Porsche AG, and its key subsidiaries.
MAIN FOCAL POINTS OF THE WORK OF THE
SUPERVISORY BOARD
governance structure. Extensive information material will also
be provided to new members of the Supervisory Board to assist
them with their Supervisory Board activities. Further enhance-
ments were made to the onboarding program, even though
no new members joined the Supervisory Board in the 2023
financial year.
to discuss general and current topics, and in doing so develop
an understanding of matters relevant to the company and its
Aside from the aforementioned training formats, a comprehen-
sive onboarding program is available to new members of the
Supervisory Board to, for example, give them the opportunity
to meet the members of the Executive Board and managers
Beyond purely legal matters, training also focused on sub-
ject areas relating to products and technology. As part of the
design presentation, future vehicle models were presented to
the members of the Supervisory Board in detail. Starting in
the coming year, product and technological expertise is set to
become part of the Supervisory Board training day too. Further-
more, in coordination with internal and external experts, the
Supervisory Board will conduct reviews throughout the year to
determine what topics are appropriate for the Supervisory Board
training day, in order to provide a complete array of education
and training for the individual members of the Supervisory
Board and the board as a whole.
Finally, the Supervisory Board addressed the recommendations
and suggestions of the German Corporate Governance Code.
The Supervisory Board discussed the requirements in depth
and, together with the Executive Board, issued the annual
Declaration of Conformity in accordance with section 161 of
the AktG.
15
When the criteria of section 31, paragraph 3, sentence 1, and
paragraph 5, of the MitbestG are met, the Mediation Committee
is responsible for proposing candidates for appointment to the
Executive Board and for proposing the dismissal of Executive
Board members.
22
p. 129
22 Management of relationships
with suppliers including payment
practices
p. 236
8 Biodiversity and ecosystems
7 Marine resources
14 Sustainability, work-related
p. 110
p. 110
6 Water
p. 246
13 Information-related impacts for
p. 108
5 Substances of concern
p. 131
21 Political engagement and lobbying
activities
p. 108
consumers and/or end users
rights and equal treatment and
p. 111
opportunities in the value chain
16
↑ ↓ ↑ 0 |||
99
Sustainability Sustainability at Porsche
19 Social inclusion of consumers
communities
18 Particular rights of indigenous
17 Work-related rights of own workforce
and/or end users
p. 127
16 Personal safety of consumers
p. 112
p. 126
15 Communities' rights
p. 233
10 Waste
9 Circular economy
p. 241
12 Equal treatment and opportunities
within the own workforce
and/or end users
p. 228
The Porsche AG Group also uses the findings from the material-
ity assessment to review its sustainability strategy. In 2024, the
materiality process is set to be harmonized with the Volkswagen
Group and updated to comply with the existing regulatory
requirements.
The materiality matrix maps all 22 topics and uses colors to
categorize them into three dimensions: environment (red),
social (black), and corporate governance (gray). The two axes in
the matrix represent the financial risks and opportunities for the
Porsche AG Group ("outside-in" perspective) and the impact of
its business operations on the environment and society ("inside-
out" perspective). Topics that are material from both perspec-
tives can be seen in the upper-right quadrant of the matrix.
The Porsche AG Group is required to report on these topics
in accordance with section 289c of the German Commercial
Code (HGB). Descriptions and content relating to these can be
found in the nonfinancial report, which is part of the manage-
ment report of the Porsche AG Group. The Sustainability Report
contains other topics considered material according to one of
the two perspectives, alongside additional topics that are of
relevance to the company.
perspectives
Material from both
9
Materiality of the financial risks and opportunities ("outside-in" perspective)
20
3
14
13
19
5
18
21
12
(11)
4 Pollution of air, water, soil
Sustainability in finance
Ever since it issued the €1 billion promissory note in 2019, sus-
tainability has been an intrinsic part of the Porsche AG Group's
financial strategy in the automotive segment.
8
The financing costs are tied to the development of the propor-
tion of all-electric vehicles relative to total sales. The Porsche AG
Group is aiming for more than 80% of its newly delivered
vehicles worldwide to be fully electric in 2030-depending on
customer demand and the development of electric mobility in
the individual regions of the world.
This was further underlined in 2023 by the sustainability com-
ponent in the new syndicated revolving credit facility of €2.5
billion.
20 Corporate governance, corruption
and bribery
p. 119
11 Working conditions for own
workforce
p. 104
2 Climate change adaptation
p. 104
1 Energy
p. 250
Social
The sole purpose of the syndicated revolving credit facility is to
bolster Porsche's liquidity further. → EU taxonomy
Governance
Government grants
In the reporting year, government grants totaling €25 million
(2022: €20 million, 2021: €33 million) were deducted from
the acquisition costs of property, plant, and equipment. All the
conditions associated with the grant are assumed to have been
met. Performance-based government grants amounted to
€9 million in 2023 (2022: €41 million, 2021: €53 million).
3 Climate change mitigation
Material in terms of financial risks
and opportunities
● Environmental
An area is said to be facing high water stress if the percent-
age of water being withdrawn from its total supply is high
(40-80%) or extremely high (at least 80%) according to the
Aqueduct Water Risk Atlas of the World Resources Institute
(WRI). It defines water scarcity as the volumetric abundance, or
lack thereof, of freshwater resources. This scarcity is driven by
humans and is a function of the volume of human water con-
sumption relative to the volume of water resources in each area.
Water stress and water scarcity
The strategy of the Porsche AG Group, which aims to reduce the
environmental impact of every vehicle produced by the com-
pany, also concerns water. → Environmental management
The Porsche AG Group does not have a direct impact on marine
resources, which is to say biodiversity and ecosystems in or
under water.
Porsche AG and Porsche Leipzig GmbH use water carefully, as
it is an increasingly scarce resource. The aim is to reduce water
consumption and the production of effluents, thereby lessening
the environmental impact of drinking water and groundwater
shortages. Since 2014, the company has reduced the water
consumption per vehicle produced by its own production activi-
ties by more than 25%.
In the reporting year, Germany adopted its National Water
Strategy to centralize water-related measures in all relevant
sectors. Porsche AG and selected subsidiaries are taking on this
challenge too: one objective of the Porsche Strategy 2030 is to
reduce water consumption, effluents, and emissions into waste-
water at all Porsche production sites with a view to realizing the
vision of a Zero Impact Factory-in other words, production with
the smallest negative impact possible on the environment.
Examples of this include using water efficiently based on
circulation systems and the careful handling of contaminated
wastewater from vehicle production.
Since 2014, the company has reduced the water
consumption per vehicle produced of its own.
production activities by more than 25%.
↓ 25%
WATER AND MARINE RESOURCES
The vehicle production locations in Stuttgart-Zuffenhausen
and Leipzig and the development location in Weissach produce
hazardous waste, such as waste oil, acids, bases, and mixed
solvents, which are classed as dangerous goods when they are
transported.
Within the Porsche AG Group, dangerous goods are trans-
ported on their various modes of transport with consideration
for national and international dangerous goods regulations, to
preclude any danger to human beings or the environment to the
greatest possible extent. The central dangerous goods informa-
tion system for Porsche AG and selected subsidiaries has been
updated based on the current dangerous goods legislation. In
2023, Porsche AG transported more than 1,000 tons of class
1, 2, 3, 4.1, 4.2, 4.3, 5.1, 5.2, 6.1, 6.2, 8, and 9 dangerous
goods, as well as small quantities of other classes of dangerous
goods. At Porsche AG, dangerous goods are shipped all over the
world by road, sea, and air. In turn, Porsche AG receives tanks of
dangerous goods that require an emergency plan. No dangerous
goods accidents were reported in the year under review.
Porsche AG and Porsche Leipzig GmbH have internal rules in
place with standardized approval and control processes to
ensure compliance with all applicable statutory regulations.
These are worked with in a dedicated data management tool.
Relevant departments-such as Environmental Protection, Fire
Protection, Occupational Safety, and Health Management-
examine the hazardous substance and either approve it for use
or order the testing of alternative materials.
Porsche AG and selected subsidiaries use the Water Stress
Indices of Verisk Maplecroft to analyze and evaluate their loca-
tions. According to these indices, none of the vehicle production
locations is situated in an area facing high or extremely high
110
The Porsche AG Group aims for its production to have a minimal
negative impact on the environment. Technology, processes,
and logistics can all currently affect resource consumption.
All machinery and equipment used for managing potentially
water-polluting substances owned by Porsche AG, which are
subject to inspection, are logged, evaluated, and documented
within a database.
Water and effluents
Biodiversity at Stuttgart-Zuffenhausen
Porsche AG and selected subsidiaries are focused predomi-
nantly on their own locations and their immediate vicinities. For
example, Porsche has been comprehensively monitoring the
off-road circuit at its production location in Leipzig since 2004,
and the project aiming to create near-natural company grounds
has been running at Stuttgart-Zuffenhausen since 2022.
In the eyes of the Porsche AG Group, the protection of biodi-
versity also involves the continuous identification and gradual
minimization of the impacts of its business activities on the
diversity of living organisms and species in the water, on the
land, and in the air.
Biodiversity is vital for human life. Therefore, the protection
of biodiversity goes far beyond the mere protection of nature
and is one of the most urgent global challenges next to climate
change. The Porsche AG Group recognizes this and is there-
fore actively committed to preserving biodiversity at selected
locations. In the future, the Porsche AG Group aims to intensify
this engagement, which is why it is pursuing the vision of a
Zero Impact Factory.
BIODIVERSITY AND ECOSYSTEMS
The wastewater from vehicle production is pretreated in
process-specific facilities, such as physico-chemical treat-
ment systems and light liquid separators, to remove harmful
substances and reduce the impact of harmful substances
discharged into the groundwater. The effluents are regularly
analyzed and monitored in accordance with the requirements of
the authorities. In this context, the wastewater limits were not
exceeded in the reporting year.
Porsche AG and Porsche Leipzig GmbH are known as indirect
dischargers at the production locations in Stuttgart-Zuffen-
hausen and Leipzig: wastewater from these locations consists
of effluents from sanitary facilities, wastewater from vehicle
production, and rainwater; these waters are all discharged into
the sewers. Water is not discharged directly into marine areas.
Porsche AG and Porsche Leipzig GmbH obtain the water they
use in vehicle production, technical building equipment, and
social areas from the local public water supply. Due to the local
circumstances, no resources from oceans or seas are utilized
directly.
Porsche AG has reduced the risk of production interruptions
when handling water-polluting substances by raising awareness
among employees, fitting technical protective devices to the
production systems, and installing binding-agent stations at
outdoor locations.
↑ ↓ ↑ 0 |||
on greater soil and groundwater protection when potentially
water-polluting substances are used to handle water and marine
resources responsibly. Water pollutants of all hazard classes are
transported, filled into containers, stored, or reused on site.
Alongside the efficient use of water, the Porsche AG Group
primarily focuses on minimizing pollution in effluents and
Protection of water-handling of
water-polluting substances
to recycle water, while bath treatment helps to extend life in
pretreatment and in dip coating. The activation and deactivation
times of the spray nozzles are also highly optimized. Regarding
to technical building equipment, evaporative coolers are opti-
mized, which also makes it possible to save water. The waste-
water generated in vehicle production is pretreated in approved
systems. This removes or reduces pollutants. The effluents
are regularly analyzed and monitored in accordance with the
requirements of the authorities.
Porsche AG and Porsche Leipzig GmbH operate their own
systems for testing vehicle watertightness or washing plants,
for example, on the basis of closed-loop recycling. In the paint
shops, for example, water is conserved by using cascade rinsing
water stress.
109
At Paint Shop II in Stuttgart-Zuffenhausen,
The production of vehicles requires several different chemical
substances all along the supply chains. In light of the electrifica-
tion of the product portfolio, the need for chemical raw materi-
als (such as for high-voltage batteries) is expected to increase
further in the future. Some of these chemical substances can
have dangerous properties and constitute a potential health or
environmental risk. The Porsche AG Group complies with the
statutory regulations concerning safe use in production and in
the vehicles when it uses such chemicals and, where possible,
takes care to avoid harmful and hazardous substances in the
vehicle development stage.
As part of vehicle production at Porsche AG and Porsche Leipzig
GmbH, the paint shops and saddlery can produce emissions
of volatile organic compounds (VOC) from paint and adhesive
solvents. The vehicle production locations in Stuttgart-Zuffen-
hausen and Leipzig have put technical measures in place to
minimize these VOC emissions: an electrostatic separator in the
paint shops binds excess paint mist. At Paint Shop I in Stutt-
gart-Zuffenhausen, a wet chemical air purification system also
filters released solvents so they can be recycled. Around 70%
of the purified air returns to the recirculated air. The remaining
At their locations, Porsche AG and Porsche Leipzig GmbH
measure and monitor indirect greenhouse gas emissions which,
although they do not contribute to the greenhouse effect, can
influence chemical reactions in other greenhouse gases.
In addition to reducing greenhouse gas emissions, the
Porsche AG Group endeavors to reduce other air emissions.
→ Energy and climate change adaptation
Air emissions
Porsche AG and Porsche Leipzig GmbH use the impact points
method to document the environmental impacts of their
business activities. This methodology was developed by the
Volkswagen Group and measures quantitative environmental
indicators such as CO2 emissions, solvent emissions, fresh-wa-
ter consumption, wastewater loads, and various types of waste.
These are measured on-site and converted into impact points.
→ Environmental management
Porsche AG and selected subsidiaries monitor the impact of pro-
duction on the environment, including as much relevant air and
water pollution, energy consumption, and waste. At its location
in Stuttgart-Zuffenhausen, for example, Porsche AG has met
the requirements of the European Eco-Management and Audit
Scheme (EMAS) since 1996, the environmental management
standard ISO 14001 since 1999, and the energy management
standard ISO 50001 since 2011. → Environmental management
30% contains a significantly lower concentration of solvents
than the legal limit of 35 grams per square meter of vehicle
surface. The concentration is approximately 24 g/m² below this
limit. At Paint Shop II in Stuttgart-Zuffenhausen, the concentra-
tion is around 33 g/m² below this limit thanks to the regenera-
tive thermal oxidizer used as part of the exhaust gas aftertreat-
ment system. The paint shop in Leipzig falls short of the limit by
approximately 27 g/m².
The Porsche AG Group presents all environmental compliance
requirements in its environmental compliance management
system (ECMS), which is part of the overall management sys-
tem. The ECMS requirements are based on the specifications of
the Volkswagen Group.
wastewater. To further promote the use of sustainable materials,
Porsche AG has defined criteria that materials have to meet.
The Porsche AG Group aims for its vehicle production to have
a minimal negative impact on the environment. For example,
technology, processes, and logistics can all have a positive
effect on resource consumption. Examples of this include using
water efficiently based on circulation systems and multiple
reuses, and the careful handling of contaminated production
→ Environmental management, → Energy and climate change adaptation
To qualify as ecologically sustainable, a business activity
should not lead to a significant rise in air, water, or soil pollution
compared to the baseline scenario before the activity began.
POLLUTION AND SUBSTANCES OF CONCERN
In terms of biodiversity, Stuttgart-Zuffenhausen aims to be a
role model for other locations of the Porsche AG Group: a biodi-
versity tool developed by the Volkswagen Group is used on-site
there and is optimized continuously. In doing so, the Porsche AG
Group has been examining the area based on defined biodiver-
sity criteria-such as surface management, external measures,
and employee integration-since 2021. As part of the vision of a
Zero Impact Factory, binding targets for improved biodiversity at
Stuttgart-Zuffenhausen, which also consider its direct proximity
to the area of conservation and fauna-flora habitat "Stuttgarter
Bucht and Glemswald", are to be defined by 2025.
Compliance with all applicable requirements of environmental
and energy legislation is of relevance to the Porsche AG Group
and all employees. Global, European, state, and federal regula-
tions must be observed, as must municipal by-laws and other
binding obligations.
In the reporting year, process optimizations and the use of
robotics in the saddlery in Stuttgart-Zuffenhausen contributed
to a reduction in adhesive use and solvent emissions. Exhaust air
containing solvents is treated by two downstream air purifica-
tion systems to ensure that the limit of 20 milligrams of cubic
meters of total carbon is observed.
In the reporting period, there were no emissions of refrigerants
included in Annexes A, B, C, or E to the Montreal Protocol on
Substances that Deplete the Ozone Layer at Porsche AG and
Porsche Leipzig GmbH.
Protection of water-handling of
water-polluting substances
Substances of concern
In the past, historical prior use surveys have been carried out at
the locations of Porsche AG; building on these, contaminated
site assessments have been performed and documented. If
the need arises, this makes it possible to coordinate efforts
to secure or restore soil functions with the authorities. The
Porsche-owned register of contaminated sites serves as a
comprehensive tool for internal planning departments in terms
of plant development strategy.
In Germany, the Federal Soil Protection Act (BBodSchG) governs
the treatment of soil and groundwater to secure or restore their
functions on a long-term basis. The measures, requirements,
and assessment values are set out in the Federal Soil Protection
and Contaminated Sites Ordinance (BBodSchV). When con-
struction projects are carried out on Porsche-owned land, the
soil is reused appropriately within the same region.
Soil protection
Porsche AG uses the Porsche training platform to organize
the necessary qualification of the people who bear operational
responsibility as well as deployed personnel. For this reason,
it offers qualification measures such as the WHG information
course and WHG basic course, the technical WHG course, and
the legally required two years of advanced training. → Water and
marine resources
the concentration is around 33 g/m²
below this limit thanks to the regenerative
thermal oxidizer used as part of the
exhaust gas aftertreatment system.
~33 g/m²
2
↓
The vehicle production locations in Stuttgart-Zuffenhausen and
Leipzig and the Research and Development Center in Weissach
are recognized specialist firms under the German Water Man-
agement Act (WHG), which authorizes them to install, repair,
clean, and shut down certain facilities for handling potentially
water-polluting substances. They are recertified by a specialist
organization regularly.
The production locations in Stuttgart-Zuffenhausen and Leipzig
and the development location in Weissach each have a fire
department that can quickly arrive on the scene and act in the
event of a disruption to operations.
In the reporting year, operational disruptions at Porsche AG
with a potential impact on soil or water were essentially limited
to instances of minor damage when transporting, loading, or
unloading containers, as well as hydraulic leaks from transport
vehicles, which were dealt with internally.
All plant and equipment for handling potentially water-polluting
substances belonging to Porsche AG that are subject to inspec-
tion are recorded, assessed, and documented in a database.
on greater soil and groundwater protection when potentially
water-polluting substances are used to handle water and marine
resources responsibly.
Alongside the efficient use of water, the Porsche AG Group
primarily focuses on minimizing pollution in effluents and
Sustainability Environment
Based on a location checklist, catalogs of measures specific to
each location are being drawn up to realize the vision of a Zero
Impact Factory. → Environmental management
Sustainability Environment
Sustainability Environment
€10m
ENVIRONMENT
as part of its "Partner to society"
sustainability strategy field.
funding projects around the world
supported by the Porsche AG Group
part of long-term corporate citizen-
ship objects.
donated by the Porsche AG Group as
budget for employee training as part
of a sustainable and socially ethical
transformation.
>€11m >150
SOCIAL
GOVERNANCE
114
↑↓ ↑ 0 |||
113
These considerations did not identify any significant impacts on
these consolidated financial statements.
SOCIAL
PARTNER TO SOCIETY
The Porsche AG Group embraces its social responsibility and
sees itself as an active member of and partner to society. As
part of its sustainability strategy, the Porsche AG Group assists
regions and communities around the world in conserving the
environment, guaranteeing good labor and living conditions, and
boosting social cohesion. → Strategy field Partner to Society
For example, project are given financial support through a com-
pany fund that has been set up internally. Resources were used
to realize initiatives from the "Join the Porsche Ride" program in
Brazil, Chile, and China in the reporting year. The fund was also
used to finance the further expansion of the placement platform
"Porsche hilft," which aims to promote voluntary engagement on
the part of employees.
For example, the donation to the "YOU Foundation" made it pos-
sible to set up mobile education centers in the earthquake-hit
regions in Turkey and Syria. The goal remains to provide quality
education for the children and young people who have been
affected. The "Porsche hilft" initiative also organized voluntary
activities in the Stuttgart area.
116
↑↓ ↑ ||
115
Sustainability Social
Except for the "Turbo for Talent" youth development initiative.
To mark the 75th anniversary, Porsche AG donated €750,000
to three nonprofit organizations in the reporting year. It donated
three equal amounts to the "Supp_Optimal" project of the
Bürgerstiftung Stuttgart organization, "Trinkwasserwald e.V.",
and the "YOU Foundation". Additionally, the Executive Board and
Works Council issued a joint call to employees to participate
privately in the fundraiser.
ANNIVERSARY FUNDRAISER
The Porsche AG Group celebrated the 75th anniversary of the
Porsche sports car in 2023 and used the occasion to intensify
its social engagement. In the reporting year, the Porsche AG
Group was actively involved in a range of projects and initiatives
around the world.
Anniversary initiatives for 75 Years of
Porsche Sports Cars
The following sections present individual initiatives as part of
the Porsche AG Group's social commitment in more detail.
Porsche AG has developed its evaluation methodology to gauge
the effectiveness and progress of measures. It is applied to
existing donations and sponsorships in connection with social
sustainability at Porsche AG.' Evaluations are based on quanti-
tative and qualitative data. The goal is to establish comparability
between the various funding projects while identifying potential
ways to optimize the internal evaluation at the same time.
The Donations and CSR Sponsorship group guidelines for
support projects govern all the processes, responsibilities,
and approvals. The goal is to utilize donations and sponsorship
money in connection with Porsche's social responsibility in a
lawful manner and exclusively in the interests of the Porsche AG
Group. At the same time, the guidelines aim to prevent actions
that could make it seem as if the Porsche AG Group is influenc-
ing official or business decisions through extraneous means.
Within Porsche AG, the main Communications, Sustainability,
and Politics department is the organizational unit with central-
ized responsibility for implementing funding projects.
As part of the sustainability strategy field "Partner to soci-
ety," the Porsche AG Group is involved in numerous nonprofit
initiatives, whereby it focuses on long-term projects in five core
areas: sport, culture, environment, social affairs, and education
and science. In 2023, the Porsche AG Group supported more
than 150 funding projects around the world. In doing so, the
Porsche AG Group aims to help shape society's future and set
standards.
Support: frameworks and core areas
According to the waste management plan, unavoidable frac-
tions of waste are to be systematically sorted and collected at
the source. Consequently, all waste receptacles and collection
points feature standardized signage based on the various waste
fractions. The valuable materials in the waste can then be used
in the subsequent waste disposal process. Thanks to digital
waste logging, Porsche AG can produce waste balances at its
locations in Stuttgart-Zuffenhausen and Weissach, track its
progress toward goals, and comply with statutory documenta-
tion obligations.
In 2021, Porsche AG turned an area of 2,000 square meters into
near-natural green recreational space for employees and the
local neighborhood in Stuttgart-Zuffenhausen. Under the super-
vision of a professional landscape gardener, Executive Board
members and employees of Porsche AG voluntarily planted
around 2,000 native plants that are appropriate for the location
in a project as part of the "Porsche hilft" initiative. Assisted by
the Executive Board, employees transformed more space into a
near-natural area in fall in the reporting year. As such, planting
initiatives also serve to raise awareness among employees. More
planting initiatives are in the pipeline.
In the reporting year, Porsche AG and selected subsidiaries
continued working to reduce, recycle, and dispose of waste in
an environmentally friendly manner, and to evaluate low-waste
procedures within their own vehicle production. In cooperation
with a local disposal firm, for example, the sorting and collec-
tion of plastic straps were optimized directly at the source in
Stuttgart-Zuffenhausen. Sorting makes it possible to recycle
this fraction of waste and save resources as a result. Points of
origin with considerable quantities of straps are being evaluated
even after the end of the reporting period, as is the operational
implementation of the disposal process. In the future, the opti-
mization is set to be gradually expanded to other key locations.
Since 2019, Porsche AG has been working on a technically
feasible, sustainable, and transparent process to further reduce
waste at its saddlery in Stuttgart-Zuffenhausen. In the reporting
year, Porsche AG found a local partner that will reuse its mate-
rials: the partner company is set to use the remaining leather
that the saddlery can no longer use in order to produce mobile
living solutions. For this purpose, the leather is either cut to size
by a CNC machine or reused in rolls. The logistics for the project
were finalized after the end of the reporting period, so the
leather recycling plan can be put into action at the next possible
opportunity. → Circular economy
This makes it possible to evaluate waste reduction measures
or the introduction of recycling measures. For example, the
ratio between disposable and recyclable waste improved in the
reporting year due to the development of a new disposal pro-
cedure for 25 tons of PVC cleaning cloths from the paint shop
areas in the vehicle production plant in Stuttgart-Zuffenhausen.
WASTE
The protection of species of wild bees is a priority in Weissach.
To further improve their current living conditions, wild bee pas-
tures have been created in selected green spaces. The estab-
lished near-natural company grounds project aims to continue
supporting biodiversity and habitat variety at the location.
Act (WHG). As such, Porsche AG worked with external land-
scape planning and species conservation experts in 2019 to
develop a guide for the location. The guide contains specific
planting and green space creation measures, such as planting
suggestions and care tips. The aim is to create a wildlife corridor
leading to the local natural structures and species outside
the development center's site. Building on the guide for the
Weissach location, specific near-natural design guidelines for
the production locations in Stuttgart-Zuffenhausen and Leipzig
were drawn up in 2020 and implemented as a standard.
Porsche AG is also committed to protecting biodiversity around
the Development Center in Weissach. This location is situated in
a water protection zone, which means special precautions must
be taken in accordance with the German Water Management
Biodiversity at the Development Center
in Weissach
In cooperation with Auwaldstation Leipzig, Porsche Leipzig
GmbH opened the area to a broad target group to inspire an
interest in flora and fauna in future generations: children and
families on the Porsche Safari have been able to explore the
area's flora and fauna in the company of an environmental edu-
cator since 2018. The Porsche Safari is a core element of the
support projects at the location in Leipzig.
The avoidance of waste is an integral part of the Porsche AG
Group's environmental and energy policy. Waste avoidance pre-
serves resources and gradually reduces potential environmental
impacts.
Additionally, more than 12,500 square meters of the off-road
terrain have been registered as flowering meadows as part of
the Saxony State Foundation for Nature and the Environment's
"Flowering Meadows for Butterflies" initiative. The strategic
preparation and maintenance of the flowering meadows provide
a habitat for insects. At the same time, the insects are a key part
of the off-road terrain's ecosystem.
The biodiversity strategy continued on the off-road circuit at the
Leipzig plant in the reporting year. In the reporting year, based
on monitoring initiated back in 2004, a project involving and
sponsored by the management created lizard biotopes. Perches
were also installed for birds of prey. A strategic plan has set out
further measures for Leipzig to protect the habitats of plants
and animals in the long term.
Biodiversity in Leipzig
The planted meadows, wild shrubs, and other native plants
provide a safe haven for birds and insects. In the reporting year,
Porsche upgraded the area with coarse woody debris, dry stone
walls, areas of sand, and broken stones. These can also serve as
a habitat for various reptiles and insects. Introduced in 2022,
monitoring of the near-natural areas aims to safeguard the
development of the areas and identify further recommended
courses of action.
112
↑↓ ↑ ||
111
In addition to wild oxen and Exmoor ponies, the company's off-
road circuit is home to numerous native species of wild animals
that live in harmony with nature and the factory. The former
military site has undergone gradual renaturation ever since
Porsche Leipzig GmbH developed the location in 2000. With
its specially created wetlands and grazing land, the site offers a
natural habitat for numerous types of flora and fauna.
Waste management at Porsche AG and selected subsidiaries is
based on the national Circular Economy Act (KrWG). It sets out
a five-tier waste hierarchy:
1. Avoidance
2. Treatment for reuse
The impact points methodology is used to identify and assess
the impacts of waste. → Environmental management
Within the Porsche AG Group, various certifications which
also encompass waste management: selected locations of
Porsche AG and selected subsidiaries are certified under
ISO 14001 (environmental management). Additionally, the
European Eco-Management and Audit Scheme (EMAS)
covers waste management at Porsche AG's location in Stutt-
gart-Zuffenhausen. + Environmental management
The Porsche AG Group also intends to further reduce waste
as part of the Porsche Strategy 2030. As a result, materials
are to be recycled instead of being disposed of as waste. This
will reduce the need for natural resources and is expected to
contribute to their conservation. In line with its vision of a "Zero
Impact Factory", the Porsche AG Group is striving to minimize
the existing environmental impacts of its own vehicle produc-
tion as far as possible by 2030. Environmental management
uses
Removal
Recycling
Preparation
for reuse
Other
Prevention
Five-tier waste hierarchy
The waste management plan is part of the resource efficiency
program. It aims to reduce the environmental impact of vehicle
production by an average of 45% between 2014 and 2025. The
program considers the quantity of disposable waste per vehicle
produced. So far, Porsche AG and Porsche Leipzig GmbH have
managed to reduce the quantity of waste for removal produced
by 75% since 2014.
To implement the legal requirements, Porsche AG and selected
subsidiaries have drawn up a waste management plan centered
on the waste hierarchy. For example, it prioritizes waste avoid-
ance using low-waste technology and sustainable, economical
disposal solutions designed to increase material recycling.
5. Disposal
4. Recovery (such as energy generation)
3. Recycling
Concerning new production facilities, Porsche AG and selected
subsidiaries generally consider where waste can be produced
during the planning phase. When issuing invitations to tender
for waste, Porsche AG and selected subsidiaries pay special
attention to disposal facilities that offer recycling.
Furthermore, the Porsche AG Group regularly assesses whether
these developments require impairment tests or whether the
useful lives of other noncurrent nonfinancial assets need to be
adjusted. The Porsche AG Group also ensures that all interna-
tional regulations concerning emissions and the multiplying
obligations that result from them are being considered properly.
Selected efficiency improvements in the new generation of the Porsche Taycan
In the reporting year, the Executive Board took the potential
impacts of climate change and future regulatory requirements
into consideration in the consolidated financial statements,
especially in connection with the transition to electric mobility.
Where possible, the Porsche AG Group factored conceivable
impacts-especially on long-term assets, provisions for emis-
sion fees, and future cash flows-into its key estimations and
evaluations.
Biodiversity
11
10
9
Energy and CO2
5
Pollutants
6
8
Soil
Planning
Architecture and
perception
Environmental
compliance
4
3
7
Materials
Mobility
Water
VISION OF THE
Once again, the Stuttgart-Zuffenhausen location plays a
pioneering role here: the location of Porsche AG has met the
requirements of the European Eco-Management and Audit
Scheme (EMAS) for over 25 years, the environmental manage-
ment standard ISO 14001 since 1999, and the energy manage-
ment standard ISO 50001 since 2011.
As part of annual system and process audits, Porsche AG and
selected subsidiaries conduct random checks to ensure that the
applicable environmental and energy laws are being observed.
This compliance is confirmed by certifications that are audited
by independent third parties regularly.
Certifications
The locations of Porsche AG and selected subsidiaries have
environmental management and energy officers who calculate
a complete set of key environmental and energy figures, check
their plausibility, coordinate internal and external environmen-
tal and energy management audits, and recommend correc-
tive actions to stimulate continual improvement. The related
operational and strategic responsibilities are assumed by the
Environment and Energy Management department, which has
been interconnected through partnerships with the relevant
and affected departments since 2019. This made it possible to
intensify existing communication and collaboration.
The Environmental Compliance Management Committee
was formed in 2022 and consists of members from different
divisions and Group companies. The committee reports on
high-level strategic objectives and measures, compliance with
the law at German company locations, and on the international
transferability of German regulations. The committee meets
twice a year in its entirety (globally) and four times a year on a
national level.
Porsche AG and selected subsidiaries have also adopted the
"Environmental protection" resource regulation. This regulation
is an internal guideline and set of rules for direct suppliers.
An organized, structured environmental compliance man-
agement system ensures that the environmental and energy
requirements of national and international legislation are imple-
mented. This prevents negative consequences for Porsche AG
and, for example, minimizes reputational risk, the risk of
prosecution or civil action to employees and the company.
Additionally, the ECMS helps continuously improve environ-
mental and energy performance as well as energy efficiency.
As such, the ECMS ensures that the environmental and energy
policy is vital and that long-term strategic company objectives
relating to energy management and environmental protection
are accomplished.
As a company guideline, the "Environmental Compliance
Management System" (ECMS) governs the responsibilities,
processes, and necessary environmental compliance measures
at the level of Porsche AG. Its purpose is to deliver the neces-
sary transparency for those responsible for enforcement within
Porsche AG. An updated version of this company guideline was
published at the start of the reporting year.
The implementation of the ECMS is the responsibility of the
Member of the Executive Board responsible for Production
and Logistics, who is assisted by the Environment and Energy
Management department: it turns the specifications of the
Volkswagen Group into specifications for Porsche AG. Officers
from this department follow the relevant legal developments,
evaluating their impact on the company and informing the
affected areas.
As a group guideline, the "Environmental Compliance Man-
agement System" (ECMS) is based on the specifications of the
Volkswagen Group and standardizes the procedure, responsi-
bilities, and processes in connection with environmental and
energy-related matters throughout the Porsche AG Group.
Environmental protection is also a compliance topic at the
Porsche AG Group. Preeminently, Europe-wide regulations and
directives, German national laws, federal state laws and ordi-
nances, and municipal by-laws are of relevance.
Environmental compliance: guidelines
and responsibilities
Regarding risks and opportunities relating to its business activ-
ities, Porsche AG does not differentiate between ESG and other
risks. ESG risks are regularly incorporated into the general busi-
ness risks. The risk inventory of the Porsche AG Group contains
key risks linked to the climate. → Energy and climate change adaptation,
→ Report on risks and opportunities
FACTORY
ZERO IMPACT
2
> 1
Digitalization
Porsche AG and Porsche Leipzig GmbH regularly disclose key
environmental and energy figures annually and report on the
progress of their sustainability activities, in the nonfinan-
cial report and sustainability report. They also communicate
environmental management issues internally and externally.
Furthermore, Porsche AG reports on the risks and opportunities
arising from climate change in the → TCFD Index, in line with the
recommendations of the Task Force on Climate-Related Finan-
cial Disclosures (TCFD).
reduction in the environmental
-45%
By 2030, the environmental impacts of Porsche's vehicle
production are also to be reduced by 95% compared to 2018.
There are various frameworks for such objectives concerning
the development and production of vehicles, which is why the
development location in Weissach is an exception: compared
to 2018, the environmental impacts there are to be reduced by
50% by 2030 and by 95% by 2040.
The strategy of Porsche AG defines overarching short,
medium, and long-term goals as well as environmental and
energy management measures based on its current envi-
ronmental policy. For one, the goal is to reduce the environ-
mental impact per vehicle2 produced by Porsche by 45%
between 2014 and 2025. This target was achieved in 2022
with a reduction of 58%.
comprehensive decarbonization program designed to greatly
reduce the average CO2 emissions of its products and business
processes. The Porsche AG Group sees the decarbonization
of its vehicles' value chain not only as a strategic mission, but
also as a financial opportunity. The Decarbonization Index (DCI)
has been an effective reporting and control instrument for the
measures of the decarbonization program since 2019. → Climate
change mitigation, → Energy and climate change adaptation
The Porsche AG Group aims to achieve balance-sheet CO₂
neutrality across its newly produced vehicles' entire value chain
in 2030'. To this end, the Porsche AG Group has launched a
Targets, programs, and key indicators
Porsche AG and selected subsidiaries evaluate these impacts,
make them incrementally measurable, and derive transparent
and objective targets from them. The Executive Board evaluates
these goals and measures regularly, at least once a year and
determines whether there is an additional need for action and
what form that action might take.
Porsche AG actively pursues an internally adopted environmen-
tal and energy policy. Within this framework, Porsche AG and
selected subsidiaries consider as many of the ascertainable
environmental impacts of their business operations and all the
aspects of their vehicle production. The purpose is also to align
their entrepreneurial considerations and actions with this policy.
ENVIRONMENTAL MANAGEMENT
ENVIRONMENT
ENVIRONMENT
GOVERNANCE
SOCIAL
100
impact of Porsche's in-house vehicle
production from 2014 to 2025.
Furthermore, the newly built Plant 4 at Stuttgart-Zuffenhausen
has become one of the first industrial districts in Germany to
receive a gold certificate from the German Sustainable Building
Council (DGNB). These awards are based on evaluations involv-
ing 40 different sustainability criteria. The location in Leipzig
also holds a platinum district certification from the DGNB.
Porsche AG and selected subsidiaries are aiming for newly
constructed buildings to meet the DGNB's criteria for a gold
certificate as a minimum requirement.
-75%
+48%
The production locations in Stuttgart-Zuffenhausen and
Leipzig are leading the charge towards a "Zero Impact Factory":
Porsche AG monitors the environmental impacts of its opera-
tions precisely at these locations, including the relevant pollu-
tion in the air and water, energy consumption, waste volumes,
and mobility.
The impact points method was developed by the Volkswagen
Group based on the scientifically recognized ecological scarcity
method and makes it possible to calculate environmental
impacts based on resource usage and emissions at defined
locations of Porsche AG and selected subsidiaries. The results
are known as "impact points" that help identify ecological hot
spots. → Climate change mitigation, → Energy and climate change adaption
Fields of action for the vision of a Zero Impact Factory
With the vision of a Zero Impact Factory, the Porsche production
locations in Stuttgart-Zuffenhausen and Leipzig and the devel-
opment location in Weissach aim to measure the environmental
impacts of a location both completely and absolutely. Two sepa-
rate methods have been developed for this purpose: the location
checklist analyzes the qualitative aspects of a location in eleven
fields of action-environmental compliance, architecture and
perception, planning, digitalization, water, energy and CO2,
material, soil, biodiversity, pollutants, mobility-whereas the
impact points method analyzes how a location uses resources.
Therefore, Porsche AG and selected subsidiaries have also
launched a resource efficiency program for all locations and
areas of vehicle production. Vehicle production is one of the
largest consumers of resources in the Porsche AG Group. Tech-
nology, processes, and logistics can all have a positive effect
on resource consumption. Aside from energy consumption,
examples of this include using water efficiently based on circula-
tion systems and multiple reuse as well as the careful handling
of potentially contaminated wastewater from Porsche's own
production. To further promote the use of sustainable materials,
Porsche AG has defined criteria that materials have to meet.
The corporate strategy is paving the way to the realization of
a Zero Impact Factory-a vision of vehicle production with the
smallest negative environmental impacts possible.
↑↓ ↑ 0 |||
102
↑↓ ↑ ||
101
Sustainability Environment
2 The environmental impacts of Porsche vehicle production have been measured
using key performance indicators (KPIs) since 2014. The Volkswagen Group
has defined five KPIs to measure the overall resource efficiency of a vehicle
production location: energy and water consumption, CO₂ emissions, solvents,
and waste per vehicle. The weighted average of these KPIs is known as the
"reduction of environmental impact of production" (UEP).
This target encompasses Scope 1, Scope 2, and Scope 3 emissions as defined
by the Greenhouse Gas Protocol. Balance-sheet CO2 neutrality along the newly
produced vehicles' value chain describes the Porsche AG Group's ambition
to avoid and reduce CO2 emissions, especially in production (Scope 1 and
Scope 2 emissions), in the supply chain, and over the service lives of newly
produced vehicles (upstream and downstream Scope 3 emissions), as well as
other Scope 3 emission categories such as employee commuting. Porsche AG's
decarbonization strategy involves offsetting with carbon credits (i.e., the
"avoided emissions" and "removals" categories) as a means of compensating for
its remaining emissions to become balance-sheet CO2 neutral. The emissions
of newly produced vehicles shipped in the years before the company achieved
balance-sheet CO₂ neutrality are not factored into the carbon footprint
calculation. The Porsche AG Group's ambition depends on diverse factors, such
as technological advancements, which are not yet fully developed, as well as
regulatory or economic developments that might be beyond the control of the
Porsche AG Group and thus potentially impossible to realize.
mance in the new generation of the
Porsche Taycan through efficiency
improvements.
increase in recuperation perfor-
waste for removal per vehicle manu-
factured by Porsche AG and Porsche
Leipzig GmbH.
The effects of the transition to electric mobility have been taken
into consideration in the calculation of the multiyear operat-
ing plan. In particular, they are factored into the calculation of
future cash flows. They are even factored into the development
costs and production facilities when the recoverable amount
is calculated as part of the impairment testing of goodwill and
intangible assets with an indefinite useful life (especially when it
comes to planning future vehicle models and investments).
Sustainability Environment
104
Needs-based, accessible, and widely available charging infra-
structure and a customer-friendly charging process are the
The aerodynamic design in the new generation of the Porsche
Taycan features further efficiency improvements. All Taycan
derivatives are fitted with speed-dependent ride height control
and more heavily integrated headlights to reduce drag. Depend-
ing on the equipment, an adaptive rear spoiler and aerodynam-
ically optimized rims and tires are also available as optional
extras. The distribution of drive power to the front and rear axles
has been optimized in such a way that the vehicle can move
more efficiently. In the new generation, the heat used to control
the temperature inside the car is generated by a heat pump as
standard.
Like its direct predecessor, the new generation of the Porsche
Taycan will be fitted with an 800 V high-voltage electrical sys-
tem. This allows for exceptionally fast charging at a lower overall
weight. Improved drives run and are controlled even more
efficiently. Energy recuperation, which occurs when the vehicle
brakes, is shown to have improved in performance, which in turn
will facilitate even more efficient sporty driving. Energy recuper-
ation in the new generation of the Porsche Taycan has improved
by around 48% from 270 kW to up to 400 kW.
The Porsche AG Group entered the era of electric mobility back
in 2019 with the all-electric Taycan. The new generation of the
Porsche Taycan, which is scheduled for 2024, is set to be even
more energy-efficient than its predecessor. Through efficiency
measures and a larger battery capacity, the range of certain
Taycan derivatives can likely be increased by up to 30%'.
Vehicle efficiency with the Porsche Taycan
as an example
Higher-efficiency drives with
optimized control
core requirements that must be met for electric mobility to be
accepted. Therefore, the Porsche AG Group is making contin-
uous improvements to the existing charging technologies and
charging infrastructure. Charging should be as fast as possible;
new supplementary products and services should also deliver
a personalized, attractive customer experience. → Climate change
mitigation
Adaptive rear spoiler
The expected range optimization was obtained using a Worldwide Harmonized
Light Vehicles Test Procedure (WLTP). The WLTP is a globally harmonized test
procedure for determining power/fuel consumption and exhaust emissions.
In the reporting year, Porsche AG rolled out the new "Systems
Engineering" development methodology, which is geared even
more heavily towards continuous efficiency improvements in its
vehicles. To this end, Porsche AG has established an in-house
organizational unit within the development division to centralize
all variables relating to vehicle efficiency in the concept phase
and take responsibility for them until the end of series develop-
ment. The reduction of fuel and energy consumption has been
defined as a fixed project goal in this framework.
Vehicle efficiency
The Porsche AG Group is striving to become a technological
leader on the road to electrification. To accomplish this, it is
pursuing a drive strategy with three pillars: petrol engines,
hybrid drives, and all-electric drives. In doing so, the Porsche AG
Group can consider the varied needs and requirements of its
customers as well as those of the environment and legislators.
In the next five years, the Porsche AG Group is planning to invest
more than €20 billion in electrification and digitalization, which
will be centered on vehicle projects. In 2030, over 80% of the
vehicles it ships are to be fully electric-depending on customer
demand and the development of electric mobility in the individ-
ual regions of the world.
and tires
Aerodynamically optimized wheels
Ride height control with
air suspension
Porsche AG is therefore promoting the electrification of mobility
at its locations and even aims to further electrify its own fleet of
company and lease cars.
Aside from electric vehicles, the Porsche AG Group is devel-
oping new internal combustion engine technology. In addition
to reducing its fuel consumption, the Porsche AG Group is
focusing on renewable energy sources such as synthetic liquid
fuels-known as eFuels-to continuously reduce its CO2 emis-
sions. These can be produced from hydrogen obtained using
renewable energy and biogenic carbon dioxide extracted from
the ambient air. → Climate change mitigation
Energy-efficient production
Inclusion in the annual financial statements
The Porsche AG Group also expects its direct suppliers to
utilize electricity from renewable sources to produce Porsche
vehicle components. This concerns all new contracts relating to
production materials for all-electric series production car proj-
ects since July 2021 specifically. Almost all direct suppliers of
production materials have committed to meet this requirement.
→ Sustainability, work-related rights and equal treatment and opportunities in the
value chain
108
↑ ↓ ↑ 0 |||
107
Sustainability Environment
Porsche AG and selected subsidiaries have defined their
minimum criteria for new buildings, to go beyond the minimum
energy efficiency requirements required by law. From 2024
onwards, Porsche AG and selected subsidiaries will also provide
a separate sustainability budget equal to 6% of the project
budget for selected pilot projects.
Likewise, two photovoltaic systems with nominal power of 670
or 260 kWp were installed on the roofs of parking garages at the
Research and Development Center in Weissach in the reporting
year. And the electricity used by the Porsche location in Leipzig
originates entirely from renewable sources of energy, including a
4,000 kWp photovoltaic system. It is used in combination with
biomethane, district heating from biomass, and a CHP plant.
Since 2017, the electricity used by the production
location in Stuttgart-Zuffenhausen has been
generated exclusively from renewable sources.
The production location at Stuttgart-Zuffenhausen has been
using electricity from renewable sources exclusively since
2017 and biomethane since 2019. The photovoltaic system
on the roof of the building can generate up to 250,000 kWh of
electricity per year (net output). Additionally, other parts of the
roof are covered with vegetation, which enables them to help
improve the air quality.
Use of renewables
Another goal of the Porsche AG Group is to continuously
increase the share of the electricity it generates on its own
from renewable sources relative to its entire energy supply. In
doing so, the Porsche AG Group aims to reduce its dependence
on external suppliers to the greatest possible extent, to avoid
dependencies and achieve supply security.
management
In 2022, the paint shops at Stuttgart-Zuffenhausen received an
environmental retrofit in the form of a smart energy manage-
ment system, systematic heat recovery, insulation for interme-
diate dryers, and wastewater treatment. The process measuring
and control technology in the ventilation systems in the sports
car assembly building have also been modernized. → Environmental
As part of this structural expansion, Porsche AG has further
optimized the location in Stuttgart-Zuffenhausen, which is now
fully balance-sheet CO2 neutral. For example, the production
and office buildings are not far from highly efficient CHP plants
that supply energy to the company's local heating network. This
enables them to help heat the buildings and supply selected
facilities with process heat. These are primarily ones with highly
constant heat requirements, such as the paint shops with their
immersion baths and drying areas. With biomethane from
organic waste and residues, the CHP plants even generate some
of the electrical energy used by the location in an environmen-
tally friendly fashion.
At Stuttgart-Zuffenhausen, the Porsche AG Group has been
building the all-electric Taycan in a newly built plant in a bal-
ance-sheet CO2-neutral process since 2019. On average, the
buildings need less energy than the previous building stan-
dard, which makes them surpass the current minimum legal
requirements.
air conditioning
Heat pump for interior
Efficiency-optimized drive
power distribution
Energy recuperation: regenerative
braking-up to 400 kW
Besides physical environmental risks, the Porsche AG Group
has identified climate-related transition risks resulting from a
transition to a green economy. It categorizes them into tech-
nological, political, and market and demand-related transition
risks. It has analyzed these risks and incorporated them into its
risk management.
Heat stress and heavy rain have been identified as relevant
physical environmental sub-risks to the Stuttgart-Zuffenhausen
location. Heat is stressful not only for all living organisms, even
human beings, but also for machines. Rising temperatures due
to climate change lower productivity and necessitate preven-
tative action. Likewise, the Porsche AG Group identified heat
stress as a relevant physical environmental risk to its Leipzig
location.
On the one hand, physical environmental risks result from indi-
vidual extreme weather events and their consequences (such as
heat waves and droughts, floods, storms, hailstones, wildfires,
and landslides). On the other hand, they result from long-term
changes to climate and ecological conditions (such as the fre-
quency and volume of precipitation, weather volatility, rising sea
levels, changing air and ocean currents, ocean acidification, and
rising average temperatures with regional extremes). Physical
environmental risks can also have indirect consequences (such
as collapsing supply chains, discontinued water-intensive busi-
ness activities, climate migration, and armed conflicts).
In this process, the Porsche AG Group determined what specific
vehicle production locations could be affected by physical
environmental risks. These physical environmental risks were
assessed based on the service lives of the potentially affected
assets.
The Porsche AG Group updates its risk inventory regularly. In
the reporting year, it further expanded its risk management
to focus on aspects such as physical environmental risks (the
direct impacts of climate change, such as extreme weather) and
transition risks (changes resulting from a transition to a green
economy, such as laws and regulations concerning the fleet's
CO₂ emissions).
The Executive Board and Audit Committee receive quarterly
reports on the current risk situation of the Porsche AG Group.
These reports describe the top individual risks and overall risk
assessment for the Porsche AG Group, from which the current
degree of jeopardy for the company's continued existence is
derived. Additionally, external auditors examine and certify the
effectiveness and adequacy of the risk early-warning system on
an annual basis.
The Executive Board of the Porsche AG Group has established
a risk management system to identify developments jeopardiz-
ing the company's continued existence at an early stage. The
system identifies and assesses risks and monitors how they are
controlled. The departments of Porsche AG and selected sub-
sidiaries are directly linked with the system. As such, they have
the opportunity and obligation to identify potentially negative
deviations from a target figure (= risks) through clearly defined
processes (risk identification, risk assessment, risk manage-
ment, and risk monitoring). In contrast, opportunity manage-
ment, which is an integral aspect of structural and process
organization on an operational level in combination with the
general planning and control processes within the Porsche AG
Group, focuses on identifying and consistently seizing emerging
opportunities. Report on risks and opportunities
Additionally, the Porsche AG Group assesses key risks and
opportunities linked to the climate within the scope of its
sustainability and environmental management. The Decarbon-
ization Index (DCI) and the market share of battery-powered
vehicles relative to all new vehicles (known as the "BEV share")
are key indicators of strategic significance in this context.
→ Climate change mitigation
Environmental risks and related scenario analyses are examined
based on the Representative Concentration Pathway (RCP 8.5
scenario) up to the year 2050. This scenario is based on the
maximum possible CO2 concentration according to the Inter-
governmental Panel on Climate Change (IPCC). The Porsche AG
Group also examines the relevance of potential local threats and
prepares measures to counter them if necessary. In this context,
it operates on the assumption of a maximum global temperature
increase of 4.8°C.
Risks and opportunities
To this end, the goal of the Porsche AG Group is to continuously
reduce its emissions while also making increasingly efficient use
of energy. Moreover, the Porsche AG Group endeavors to make
itself as resilient as possible and prepare for the potential con-
sequences of climate change. → Environmental management, → Climate
change mitigation
Advancing climate change is a challenge for the global auto-
motive industry. Newly developed vehicles and drive systems,
as well as measures designed to improve energy efficiency and
climate protection during vehicle use, are intended to contrib-
ute to the reduction of global greenhouse gas emissions. The
Porsche AG Group is also working to actively reduce the impact
of its activities on the environment and climate. At the same
time, the Porsche AG Group supports international efforts to
solve global environmental problems and is committed to the
Paris Agreement.
ENERGY AND CLIMATE CHANGE ADAPTATION
The recertifications required under ISO 14001 and ISO 50001
were carried out successfully in 2023. The Stuttgart-Zuffen-
hausen location was also revalidated under EMAS. Aside from
the official certifications, Porsche AG and selected subsidiaries
conduct annual reviews of compliance with standards as part of
their internal environmental and energy management audits, as
well as Porsche AG's environmental audit of the EMAS-certified
Stuttgart-Zuffenhausen location.
Porsche Leipzig GmbH, the Research and Development Center
in Weissach including its external locations, the central parts
warehouse in Sachsenheim, and Porsche Werkzeugbau GmbH
have also all been certified as compliant with ISO 14001 and
ISO 50001.
Interdisciplinary teams from Risk Management and the depart-
ments at the Porsche AG Group assess the financial aspects of
key physical and transition risks. To do so, they apply the meth-
odology of the overriding risk management system. Risk control
measures are also derived.
103
Short-, medium-, and long-term risks and opportunities
relating to the environment are strategically important to the
Porsche AG Group. This was also reflected in the recent materi-
ality assessment in 2023, with climate protection and adapting
to climate change once again proving relevant to the Porsche AG
Group. → Stakeholder dialog and materiality
To accomplish its goal of a balance-sheet CO2-neutral newly
produced vehicle value chain in 2030, the Porsche AG Group
has launched a far-reaching decarbonization program designed
to significantly reduce the average CO2 emissions of its vehicles
and business processes. The Porsche AG Group sees the decar-
bonization of its value chain not only as a strategic mission, but
also as an opportunity for its business model.
MAKE-A-WISH
106
↑↓ ↑ 0 |||
105
Sustainability Environment
In 2030, over 80% of the vehicles it ships are to be
fully electric-depending on customer demand and
the development of electric mobility in the individ-
ual regions of the world.
>80%
For the Porsche AG Group, a systematic transition of vehicle
models to electric mobility is a focal point in the reduction of
greenhouse gas emissions: an electric vehicle can cause fewer
CO₂ emissions than a comparable vehicle with an internal com-
bustion engine. Renewable energy sources, such as wind and
solar, can be used during its service life. The Porsche AG Group
sees this as one of the most effective ways to reduce its existing
carbon footprint. It is intensively expediting the electrification
and hybridization of its vehicle portfolio to this end.
Electrification as a key strategy
The business activities of the Porsche AG Group can cause
greenhouse gas emissions. This is the case in the supply
chain, for example, during raw material extraction, component
production, body construction, paintwork, and assembly. The
greenhouse gas emissions from the delivery of electricity play
the most significant role in the service lives of all-electric vehi-
cles, compared to the CO2 content of the exhaust gas of internal
combustion engines and the CO2 emissions of upstream fuel
chains. The Porsche AG Group uses region-specific average con-
sumption values to calculate these. During recycling, CO2 emis-
sions can be caused by disassembly processes, for example.
Measures to accomplish environmental
and climate objectives
The Decarbonization Index (DCI) has been an effective reporting
and control instrument for the measures of the decarbonization
program since 2019. → Climate change mitigation
economic cost, the Porsche AG Group offsets them, if possible,
via carbon offset projects that are expected to meet strict,
internationally recognized standards.
The decarbonization program prioritizes decarbonization mea-
sures that help avoid or reduce greenhouse gas emissions. The
Porsche AG Group is also taking action to transition its energy
supply to less CO₂-intensive or renewable energy sources. Only
then does the Porsche AG Group consider offsetting: if emis-
sions cannot be avoided for technical reasons or at reasonable
Decarbonization cannot succeed without consistent manage-
ment. As such, the Porsche AG Group has established a CO₂
target control system as part of its vehicle projects. Using
this system, the Porsche AG Group can calculate emissions
continuously, define reduction measures, and make decisions
based on Decarbonization Index indicators that reflect the
economic efficiency of a decarbonization measure (€/tCO₂e).
The budget allocates financial resources to accomplish the
decarbonization goals.
Decarbonization program
The Porsche AG Group has been making the dreams of sports
car enthusiasts the world over come true for 75 years. In the
reporting year, to mark the occasion, the Porsche AG Group
worked to make the dreams of seriously ill children and
young people come true. The Porsche AG Group is donat-
ing €1,800,000 to the Make-A-Wish organization to fulfill
356 wishes within three years in a nod to the Porsche 356, the
company's first sports car, and give a gift of hope to children
and their families who are going through difficult times. The first
75 wishes were fulfilled in the year under review.
The Porsche AG Group is actively involved in corporate citizen-
ship projects thatbenefit people whose social environment is
directly or indirectly related to the Porsche AG Group-be that
its own locations or direct suppliers and business partners.
Young or disadvantaged people should receive strategic support
and education to enable them to make permanent improve-
ments to their living situation.
GOALS FOR CHARITY
ACES FOR CHARITY
At the Porsche European Open professional golf tournament
in the reporting year, Porsche AG launched the "Birdies for
Charity" initiative to raise money for aid for Ukraine. For every
birdie scored over the four rounds of the tournament held on the
Porsche Nord Course, Porsche AG donated €75 in its capacity
as title sponsor. The donation was split equally between "JOB-
LINGE Hamburg," an association that fights unemployment in
disadvantaged young people, and "Hamburger Abendblatt hilft
e.V.," an association that helps people in need in Hamburg.
BIRDIES FOR CHARITY
In the year under review, Porsche AG also intensified its social
engagement in sport with new and existing initiatives.
Social engagement in sport
One example of this is the Responsible Mica Initiative, on
whose Board of Directors Porsche AG had a representative in
the reporting year. In 2021, the RMI published the Global Mica
Standard as a global workplace standard promoting safety and
fair labor conditions and wages. In cooperation with Michelin,
Porsche AG is also campaigning for the sustainable extraction
of natural rubber. The project CASCADE (Committed Actions for
Smallholders Capacity Development) champions greater trans-
parency and better labor conditions for around 1,000 smallhold-
ers on the Indonesian island of Sumatra. So far, Porsche AG and
Michelin have invested a combined total of around €1 million
in the project. → Sustainability, work-related rights and equal treatment and
opportunities in the value chain
Supply chain sustainability initiatives
The Porsche AG Group embraces its responsibility to society
along its value chain as well. For example, the Porsche AG is
involved in numerous social initiatives dedicated to the sustain-
able extraction of raw materials in recognition of human rights
and fair working conditions.
"75 Years of Porsche Sports Cars" was also very much the
theme of the Aces for Charity initiative as part of the 46th
Porsche Tennis Grand Prix in the reporting year. In deference to
the first Porsche 356, Porsche AG donated €356 for every ace
hit during the tournament. The money was split equally between
the Agapedia Foundation, the Baden-Württemberg Sports
Federation, and the Ferry Porsche Foundation. It was used to
support projects delivering aid to Ukraine.
EMERGENCY AID FOR EARTHQUAKE VICTIMS
IN TURKEY AND SYRIA
INITIATIVES LINKED TO THE CONFLICT IN THE MIDDLE EAST
In November of the reporting year, Porsche AG donated €1 mil-
lion to "Nothilfe Nahost," an emergency relief effort being run
by the "Aktion Deutschland Hilft" coalition. It delivers emer-
gency humanitarian aid to people in the war-torn region. The
"Aktion Deutschland Hilft" coalition brings together various aid
organizations and services and, for example, helps distribute
food, drinking water, and hygiene products. It also offers psy-
chological support on a local level, assists with the evacuation
For over 20 years, Porsche Latin America has supported "Un
Techo," an organization that works to support people in need
in areas of poverty in Latin American cities. It provides emer-
gency housing and education programs to improve the quality
of life for the families who live there in the long term. Porsche
Latin America supports the nonprofit organization financially
and through the engagement of local importers and volunteers.
Through their collaboration, more than 730 emergency houses
have been built in 18 countries so far.
PORSCHE LATIN AMERICA: UN TECHO
PORSCHE KOREA: PORSCHE DO DREAM
Through its campaign "Porsche Do Dream", Porsche Korea aims
to open new opportunities and prospects to disadvantaged chil-
dren and young people. A scholarship program named "Porsche
Dream Up" supports bright young talents in the fields of art and
sport. The "Dream Playground" initiative creates play oppor-
tunities in schools. Other projects under this initiative include
"Porsche Dream Circle" for environmental education in schools,
"Bee'lieve in Dreams", a honeybee project for greater biodiversity
in Seoul, and "Smart Traffic Safety Solution for Children".
New initiatives designed to improve life skills and career
preparation were implemented in South Africa and Brazil in
the reporting year, and the construction of a German-Chinese
teaching and competence center began in China. For example,
these included the development of a modular qualification
program focusing on occupational safety and health and
environmental protection for various levels of education, from
kindergarten through vocational education to university.
The "Join the Porsche Ride" Taycan set out from Stutt-
gart-Zuffenhausen and has called at Porsche's locations in
Leipzig, Switzerland, and France since 2022. The Porsche
Taycan continued its journey in the reporting year, making stops
in South Africa, China, and Brazil.
As the goals cannot be accomplished and upheld going forward
without a long-term commitment, active engagement on a
local level is indispensable. Therefore, the initiative is supported
by Porsche's dealer organization as well as partnerships with
specialized nongovernmental organizations at each site.
and protection of the civilian population, and provides medical
supplies. The aid effort is set to be stepped up as soon as the
security situation permits it.
TURBO FOR TALENT-YOUTH DEVELOPMENT IN SPORTS
Through its "Turbo for Talent" youth development initiative,
Porsche AG has now partnered with seven sports clubs
throughout Germany. In addition to sports training at a high level
for children and young people, the initiative promotes social
aspects such as teaching values including team spirit, fairness,
and respect, as well as personal development.
In soccer, it has partnerships with VfB Stuttgart, the Stuttgarter
Kickers, the Red Bull Soccer Academy in Salzburg, Borussia
Mönchengladbach, and FC Erzgebirge Aue. In ice hockey,
Porsche AG supports talented young people at the Bietigheim
Steelers. In basketball, the Porsche Basketball Academy
in Ludwigsburg-the elite training center for MHP RIESEN
Ludwigsburg-is named after Porsche AG. The soccer world
champion and Porsche ambassador Sami Khedira is a prominent
sponsor of the program.
↑ ↓ ↑ 0 |||
119
Sustainability Social
Porsche AG and selected subsidiaries define annual goals in
order to improve health and safety in the workplace continu-
ously. The occupational safety committee prepares quarterly
progress reports that involve selected internal stakeholders
including managers, the Works Council, safety officers, or repre-
sentatives of disabled employees.
The Porsche AG Group has drafted a conceptual objective for
occupational health and safety that is enshrined in its occupa-
tional health and safety policy and defines the long-term vision
of Porsche AG in terms of occupational health and safety.
Combined with a highly integrated occupational health and
safety management system, the health and safety policy "Driven
by Safety and Health" is designed to ensure standardized proce-
dures and compliance with legal requirements. The Porsche AG
Group aims to avoid accidents at work, physical and mental
overloads, and work-related illnesses wherever possible.
Health and safety in the workplace are a top priority for the
Porsche AG Group. Ensuring a safe and healthy working envi-
ronment is an integral part of sustainable corporate governance,
especially during a transformation.
OCCUPATIONAL HEALTH AND SAFETY
The Porsche AG Group believes that occupational health and
safety is a key factor in the attractiveness of an employer. This
factor combines with other aspects to create attractive working
conditions, through which the Porsche AG Group hopes to
attract and retain qualified workers on a long-term basis.
The employees are one of the four most important target groups
in the Porsche AG Group's Strategy 2030 alongside the custom-
ers, society, and investors. First and foremost, the Porsche AG
Group wants to remain an attractive employer. Therefore, this
goal is embedded deeply in its HR strategy. For the Porsche AG
Group, this primarily means always putting employees at the
heart of its business decisions and embracing its responsibility
as an employer.
WORKING CONDITIONS FOR OWN WORKFORCE
The eighth awards ceremony took place in the Porsche Experi-
ence Center (PEC) on the Hockenheimring for the second time
in 2023. Besides the awards ceremony, the young athletes were
given the chance to copilot a car on the PEC Hockenheimring
track.
Porsche AG awards prizes to selected up-and-coming players
from partner clubs in the following categories: best sporting
development, best academic performance, and exceptional
social engagement.
PORSCHE TURBO AWARD ON THE HOCKENHEIMRING
The "Porsche Turbo Award" has been an integral part of the
"Turbo for Talent" program for many years-once a year,
As part of the annual Porsche Soccer Cup, Porsche AG's
youth development initiative "Turbo for Talents" launched
Goals for Charity to raise money for the Baden-Württemberg
Sports Federation. At this event-the third installment of its
kind-social projects received €750 for every successful goal
scored by the junior players at the Porsche Soccer Cup. This
helped support the "Gemeinsam mehr bewegen" initiative in the
reporting year, which aims to promote the integration of chil-
dren and young people with a refugee or migration background
into sports clubs.
Porsche AG and the local dealer organizations worked with some
of their partner associations to launch "Porsche Kids Days" as
part of "Turbo for Talent," where children from social institutions
in the region had the chance to spend an exciting day with the
partner association and accompany their sporting idols to top
games in the stadiums or halls. The program was accompanied
by the "Porsche Coaching Mobil", where the children put their
skills to the test at Parcours, the reaction wall, and in tests of
strength. "Porsche Kids Days" celebrated its opening events in
March 2023 at Borussia Mönchengladbach, which cosponsors
Porsche's youth development program, followed by stops at
the Basketball Bundesliga club MHP RIESEN Ludwigsburg,
RB Salzburg, and Erzgebirge Aue.
PORSCHE KIDS DAYS
118
↑ ↓ ↑ 0 |||
The catastrophic earthquakes in Turkey and Syria in the year
under review pushed a lot of innocent people into hardship.
Porsche AG provided emergency aid for the victims and there-
fore donated €1 million to "Aktion Deutschland hilft", which is
a coalition of German aid organizations. The Executive Board of
Porsche AG, in coordination with the Group Works Council, also
issued a call to employees to donate to help earthquake victims
through "Porsche hilft." Porsche AG's donation was used to
deliver emergency humanitarian aid on a local level, such as to
provide first aid for those affected and support rescue efforts.
Sustainability Social
"Trinkwasserwald e.V." is dedicated to environmental education,
awareness-raising, and close-to-nature silviculture. Since 2017,
Porsche AG has supported the planting of 55 hectares of mixed
deciduous forest in the Stuttgart region and in Leipzig through
donations and employee initiatives, and in doing so has helped
safeguard high-quality groundwater and drinking water.
DRINKING WATER FOREST
The disclosure contains all donations made by Porsche AG as well as donations
of more than €5,000 made by fully consolidated subsidiaries.
11.8
22.1
11.7
2021
Social activities in Germany
2022
Mio. €
Donations made by the Porsche AG Group'
BÜRGERSTIFTUNG STUTTGART-SUPP_OPTIMAL
The motto of the "Supp_Optimal" project is "Food for every-
one." In this project, Bürgerstiftung Stuttgart coordinates the
preparation and distribution of food and hot meals to homeless
people in Stuttgart. Porsche AG has been supporting the project
financially and with volunteers since 2020. Around €250,000
was donated to the organization in the reporting year, enabling
approximately 50,000 meals to be handed out to people in need
in Stuttgart.
"Kinderherzen retten e.V." helps children with cardiovascular
diseases from less medically advanced countries live healthy
lives thanks to a one-time operation. The doctors from "INTER-
PLAST-Germany e.V." voluntarily perform plastic surgery and
treat conditions including unintentional injuries and burns in
children from crisis-hit areas and developing countries.
The money was donated to the charitable aid organizations "Kin-
derherzen retten e.V." and "INTERPLAST-Germany e.V.," as well
as the Ferry Porsche Foundation. Each of the two associations
received €350,000 and the Ferry Porsche Foundation received
€211,000. The Racing for Charity initiative was awarded first
place in the Sustainable Endurance Award by Automobile Club
de l'Ouest, the organizer of the 24-hour race.
Porsche AG launched a fundraiser in the reporting year as part of
the 24 Hours of Le Mans: the newly launched Racing for Charity
initiative received €750 for each lap completed by the three
works Porsche 963 cars. The hybrid prototypes completed no
less than 733 laps in 24 hours. Porsche AG then topped the
donation up to €911,000.
RACING FOR CHARITY
117
PORSCHE HILFT
2023
A digital platform lists organizations and associations that need
the support of volunteers. The selection of projects and orga-
nizations is aligned with the company's strategy, especially the
sustainability aspects of engagement and empowerment. The
platform enables every employee to find a suitable engagement,
the support is delivered straight to the projects on site, and
team cohesion among the employees is strengthened at the
same time. Porsche AG is expanding the initiative continuously
and broadening the array of possible assignments.
Voluntary engagement is an integral part of the Porsche AG
Group's corporate culture. The "Porsche hilft" initiative comple-
ments Porsche AG's extensive financial aid with the placement
of voluntary helpers.
The global "Join the Porsche Ride" initiative underlines the
Porsche AG Group's complete understanding of the notion of
social commitment. The project is aligned closely with the
United Nations Sustainable Development Goals and addresses
them at each stop. The projects launched there range from envi-
ronmental and sustainability-related education programs for
children to the inclusion of people with disabilities to improved
occupational health and safety. They are running at selected
locations of the Porsche AG Group on five different continents.
The symbol of the projects is a Taycan, which serves as an
ambassador of greater sustainability.
JOIN THE PORSCHE RIDE
Everyone benefits from the PAVE program: the young adults,
many of whom are from socially disadvantaged backgrounds,
gain access to first-class vocational training and the dealer
organizations are provided with highly qualified employees.
Long-term, strategic school partnerships also ensure that
vocational training skills are embedded locally. This means that
PAVE aims to have a lasting effect. At the same time, changes
in vocational training requirements are responded to flexibly
and in advance by the program. All in all, PAVE offers young
people highly promising development opportunities, which not
only promotes individual self-determination, but also leads to
improvements in society as a side effect. In the reporting year,
16 new technical partner schools in China joined the interna-
tional PAVE network.
PORSCHE AFTERSALES VOCATIONAL EDUCATION (PAVE)
The "Porsche Aftersales Vocational Education" (PAVE) program
has been training highly qualified employees in technical profes-
sions for 15 years. The trainees attend training at international
locations-in accordance with European standards-and are
then appointed to the dealer organizations of the Porsche AG
Group and other Volkswagen Group brands around the world.
Social activities around the world
Some refugees are severely traumatized by their experiences
in crisis-hit areas and as refugees. Counseling and integrative
social projects are available to help these people process what
they have lived through. In this regard, Porsche AG supports the
psychosocial counseling offered by Bürgerstiftung Stuttgart in
Stuttgart as well as the organization Arthelps, which works with
SAVE UKRAINE to provide psychological support and art therapy
in Ukraine. Psychological support and art therapy for children,
young people, and women (mothers and widows) aim to make it
easier to process the trauma of war and counteract any poten-
tial long-term effects.
Language is the key to successful integration and makes it
easier for people arriving in Germany. Therefore, Porsche AG
has worked with a variety of project partners to launch German
courses for Ukrainian refugees at its location in Stuttgart:
Bürgerstiftung Stuttgart uses its training campus to provide
Ukrainian refugees with practical support to help them find jobs.
The Johanniter-Unfall-Hilfe accident support organization in
Stuttgart provides on-site language courses for refugees living
in emergency accommodations.
In the reporting year, Porsche AG once again ran a wide range of
initiatives to support people affected by the current situation in
Ukraine.
With a view to making a long-term difference, the Porsche AG
Group is also involved with numerous programs on an interna-
tional level, including "PAVE," and "Join the Porsche Ride." These
received the Trendence Award in the "Companies Help People"
category in the year under review.
PROJECT LUKAS FOR CHILDREN WITH DISABILITIES
More than seven million people in Germany are living with a
serious disability. They and their families often must face serious
challenges. Through the project "Lukas"-a German abbreviation
for "A smile for company children with other strengths"-which
was launched in 2019, Porsche AG supports employees whose
children need special support due to a mental and/or physical
disability by making donations to institutions that provide care
for the child. Since the launch of the initiative, around €500,000
has been donated to integrative kindergartens as well as care
centers and full-day kindergartens.
By promoting literacy, Porsche AG aims to strike a blow for equal
opportunities. In cooperation with the Stiftung Lesen founda-
tion, Porsche AG has already opened 29 book clubs at elemen-
tary schools in Baden-Württemberg and Saxony, where children
can participate in supervised adventures into the world of books
to inspire them to read regularly. Porsche AG also supports the
voluntary initiative "Leseohren e.V." in Stuttgart. Almost 600
volunteer readers visit kindergartens, libraries, and schools in
Stuttgart regularly. The goal is to develop children's language
and comprehension abilities and encourage and improve their
reading skills in turn.
PROMOTION OF LITERACY
With "Porsche hilft," Porsche AG is focusing on people. The ini-
tiative makes it clear that each one of us can make an important
contribution to society and help bring about positive change.
The annual Christmas initiative was one of many that took place
in the reporting year, where Porsche AG employees could make
a disadvantaged child's Christmas dream come true. In 2023,
the initiative supported children and young people in the care of
Caritas and Stuttgarter Jugendhausgesellschaft. This year, the
option is also available to support the "Femmetastisch" project
and the child protection association Kinderschutzbund Stutt-
gart. More than 150 wishes were fulfilled and around €6,000
were donated to specific projects in the reporting year.
Aid initiatives for Ukraine
The platform is being put to good use, with volunteers per-
forming more than 2,500 hours of voluntary work in the year
under review. For example, they helped redesign playgrounds
for disadvantaged children and young people, planted trees,
and marked World Cleanup Day by picking up waste from
around Porsche locations worldwide as part of an international
campaign, and made the Christmas wishes of disadvantaged
children come true. Alongside the Porsche AG Group's anniver-
sary fundraiser, other voluntary activities were available at the
location in Stuttgart on the weekends in the fourth quarter of
2023. Some 750 employees teamed up with "Trinkwasserwald
e.V." and "Supp Optimal" to plant around 8,000 trees and dis-
tribute around 2,000 meals to people in need. Employees also
had the option to donate to the organizations in just a few clicks
via the Porsche intranet.
The Group-wide "Principles of Communication and Governmen-
tal Affairs" guideline requires every political activity to adhere
to the principles of integrity, transparency, and traceability. The
guideline also offers guidance on contact with political stake-
holders and governs the process of political lobbying.
landtag-bw.de/home/der-landtag/transparenzregister.html).
The Porsche AG Group also deals with current political issues
by getting involved with associations. The Politics and Society
department oversees coordinating these activities as well.
These activities are also subject to the principles of transpar-
ency, traceability, and responsibility. Competition and antitrust
legislation, as well as other legal provisions, must always be
taken into account. Inter alia, Porsche AG is registered in the
Lobby Register (https://www.lobbyregister.bundestag.de) to lobby
the German Bundestag and the German government as well as
the Baden-Württemberg Transparency Register (https://www.
Involvement in associations
the Volkswagen Group has its corporate representation-for
instance, in Berlin and Brussels. As such, it also handles political
lobbying for the Porsche AG Group.
131
↑ ↓ ↑ 0 |||
Sustainability Governance
The Politics and Society department is responsible for all polit-
ical lobbying on behalf of the Porsche AG Group. It is a central-
ized coordination hub for concerted approaches and actions,
not to mention harmonized communication. Its duties also
include organizing and supervising programs of political visits
and events. Moreover, the department reports to the Executive
Board on current political matters and developments regularly.
Through its Governmental Affairs Steering Committee, the Pol-
itics and Society department coordinates the political activities
of the Porsche AG Group whilst maintaining both a harmonized
approach and consistent communication with stakeholders.
The Porsche AG Group is a member of the following associations
(selection below):
The employees of the Porsche AG Group who are tasked with
political lobbying coordinate their work with the Public Affairs
division of the Volkswagen Group on a regular basis. Only
> German Association of the Automotive Industry (VDA)
SMA 426E
> Chamber of Commerce and Industry of the
Stuttgart Region (IHK)
> Leipzig Chamber of Commerce and Industry (IHK)
> American Chamber of Commerce in Germany e. V.
(AmCham Germany)
> The Industry Association of Baden-Württemberg (LVI)
> Stifterverband (an organization dedicated to education,
science, and innovation)
132
For more about the Porsche AG Group's involvement in associa-
tions and networks, including how it involves its stakeholders in
this context, please refer to Stakeholder dialog and materiality.
19
134
The Porsche AG Group operates in a complex and heavily
regulated field. Whenever it makes a business decision, the
Porsche AG Group evaluates the consequences of its actions
for the company and environment and factors them into its
internal processes. Furthermore, the Porsche AG Group plays an
active role in helping to structure the framework for its business
operations. To this end, the Porsche AG Group maintains a
transparent, goal-driven sociopolitical dialog with governments,
parliaments, authorities, associations, institutions, nongov-
ernmental organizations, and civil society. This enables the
Porsche AG Group to incorporate its positions into social and
political discourses as well as decision-making processes.
|| ↑ I
> Südwestmetall (Baden-Württemberg employers' association
for the metal and electrical industry)
Dialog with politics
The employees of MHP Management- and IT-Beratung
GmbH are not subject to any collective bargaining agree-
ments; the working conditions for employees are instead
governed in their employment contracts. There are additional
works agreements and guidelines for certain subject areas.
Porsche Consulting GmbH is not bound by a collective
agreement either.
The Porsche AG Group works across party lines to support
strong, sustainable global trade. It requires international com-
petition, international business activities, freedom of movement
for workers, and a global exchange of knowledge in order to be
competitive. The Porsche AG Group welcomes international
frameworks for improved sustainability and supports the Paris
Agreement, including the 1.5°C goal. To the Porsche AG Group,
these are the foundations of free, sustainable, fair, and rules-
based international trading relationships.
Code of Conduct for Business Partners
Trust-based cooperation between Porsche AG and its direct
suppliers is based on shared values. The Code of Conduct for
Business Partners translates these values into specific require-
ments. The Code of Conduct compels all parties to observe
environmental, social, and human rights standards. The Code of
Conduct was originally drawn up by the Volkswagen Group and
is available online at www.vwgroupsupply.com.
The direct suppliers of Porsche AG are forbidden to knowingly
engage in any form of forced labor or compulsory labor as well
as any form of modern slavery, human trafficking, or child labor.
Moreover, employees may not be harassed or discriminated
against, whether due to their ethnic background, religion,
nationality, sexual orientation, age, gender, physical or mental
limitations, or membership in a union. Porsche AG also expects
all direct suppliers to follow the OECD Due Diligence Guidance
for Responsible Supply Chains of Materials from Conflict-
Affected and High-Risk Areas.
63
In so far as business partners of Porsche AG engage third parties
(such as subcontractors or representatives) as part of their
business relationships with the company, they undertake to
pass the Code of Conduct for Business Partners on to the third
parties in question and have them commit to adhere to it.
Sustainability criteria in new contracts
The Porsche AG Group adheres to strict sustainability criteria
when it awards new contracts.
High-voltage battery cells for electric drives are a CO₂-intensive
component to manufacture. A new tendering process has there-
fore been in place for all-electric vehicles since 2023: all direct
suppliers in these vehicle projects must now meet concrete
specifications concerning the use of electricity from renewable
sources, CO2-optimized primary materials, and recycled materi-
als. They have already been obligated to use green electricity in
manufacturing since 2021.
Concerning the awarding of contracts for new parts in new vehi-
cle projects, direct suppliers of production materials have been
contractually obligated to use green electricity to manufacture
components since 2021. In 2022, all direct suppliers selected
for new vehicle projects undertook to meet this requirement.
Preventative supplier risk management
Before a contract is awarded to a direct supplier, the Procure-
ment department at Porsche AG reviews its financial status.
The "Supplier Status" report is used for this purpose: it indicates
whether direct suppliers of production materials and direct
suppliers of nonproduction materials are considered eligible or
ineligible to be awarded a contract from a financial standpoint.
Employees in the Procurement department are required to
perform continuous reviews of the financial situations of direct
suppliers and look out for potential indications of negative
changes. If a critical development occurs, further information
about the financial situation of the direct suppliers must be
obtained in coordination with the relevant department.
Sustainability rating for direct suppliers
In 2021, Porsche AG began using the sustainability rating
(S-rating) as another supply chain control instrument. Based
on defined criteria, Porsche AG reviews the environmental and
social behavior of direct suppliers of production materials along-
side their compliance with the Code of Conduct.
Specifically, by 2030, Porsche AG aims to comply with the
strictest internal quality standards relating to sustainability with
90% of the production material it purchases from direct suppli-
ers. This means that direct suppliers of production materials are
expected to achieve a positive S-rating in the highest category
by this point in time. The basis is a self-disclosure from the
direct suppliers, which is followed by special-purpose on-site
inspections if necessary.
As a matter of course, the Porsche AG Group remains impartial
in its dealings with political parties and interest groups. The
Porsche AG Group does not donate to political parties. Addi-
tionally, it spent nothing on supporting party events, advertise-
ments in party-affiliated publications, or external lobbyists in
2023.
Degree of fulfillment of the highest quality standards based on
purchasing volume of Porsche AG
0
88.3
2023
90
100
2030 target
Porsche AG employees who work with these suppliers are
advised to undergo training in this context. A digital learning
module for employees in other divisions of Porsche AG is also
available. → Sustainability, work-related rights and equal treatment and oppor-
tunities in the value chain
Transparent payment processes
In the interests of maximizing transparency in the supply chain
and avoiding attempts at corruption, Porsche AG has largely
transitioned its payment practices to electronic processes.
Direct contractual partners are expected to send electronic
invoices exclusively. Direct suppliers of production materials
must upload their invoices on the business platform of the
Volkswagen Group www.vwgroupsupply.com. Paper invoices are
only accepted in justified exceptional cases or in coordination
with the Accounts Payable department at Porsche AG. They
must always be sent to a fixed address. In turn, Porsche AG
provides electronic accounting records as a rule.
All invoices must be prepared in accordance with national VAT
law. They must also contain a specific set of details (supplier,
order, delivery order, material number, unloading point, and
the name of the point of contact at Porsche AG); all necessary
documents must be attached.
Training measures in the supply chain
Employees of Porsche AG and employees of selected direct
suppliers receive training as part of the revision of sustainability
standards, especially in line with the UN Global Compact. These
training courses, for example, are part of supplier development
measures that also encompass other project management
subject areas, such as capacity adjustment, cost optimization,
and reporting. In doing so, Porsche AG is bolstering its supply
security for series production.
POLITICAL ENGAGEMENT AND LOBBYING
ACTIVITIES
%
904 Carrera GTS
137
136
Meeting on June 28, 2023 with a majority of 100%.
Against this background, the following recommendations
have temporarily not been complied with for the period
until the end of December 31, 2022:
Until the new remuneration system comes into
effect, there was no systematic description of the
declarations required under recommendation G.1 of
the Code.
Furthermore, the determination of a specific target
total remuneration in the sense of recommendation
G.2 of the Code was not provided for until the IPO. On
September 14, 2022, the Supervisory Board
determined a specific target total remuneration for
the Executive Board members effective January 1,
2023.
The long-term variable remuneration amounts
granted to the members of the Executive Board in
accordance with the remuneration system for the
Executive Board valid until December 31, 2022 are
agreed in performance share plans. In deviation from
recommendation G. 10 sentence 1 of the Code, these
are based on the development of the preferred share
issued by Volkswagen AG. In addition, the
performance period for performance share plans
commencing before January 1, 2023 is three years,
in deviation from recommendation G.10 sentence 2
of the Code. New performance share plans
commencing on or after January 1, 2023 are based
on the development of the preference share issued
by the company, and the performance periods are
then four years. Recommendations G.10 sentences 1
and 2 of the Code with regard to performance
periods for performance share plans that have begun
since January 1, 2023 and will begin again in the
future will therefore be complied with.
Since submitting the last declaration of conformity, the
company has concluded new Executive Board service
contracts with all Executive Board members with
retroactive effect from January 1, 2023, in which the
remuneration was set in accordance with the new
remuneration system. Since then, the recommendations
in section G. of the Code have been complied with, unless
a deviation is declared below under c).
b) Peer group disclosure (G.3 of the Code)
In order to assess whether the specific total
remuneration of Executive Board members is in line with
usual levels compared to other companies, in accordance
with recommendation G.3 sentence 1, first half-sentence
of the Code the Supervisory Board uses a peer group of
other third-party entities. In accordance with
recommendation G.3 sentence 1, second half-sentence
of the Code, the composition of this peer group was
136
Corporate Governance Corporate Governance Declaration
Responsibility for complex global supply chains:
Porsche AG promotes sustainability along its entire
supply chain. Porsche AG wants to make complex global
supply chains more transparent and further increase
the weighting of sustainability aspects in its decisions
to award contracts in the future. Moreover, in selected
countries of origin of its raw materials, Porsche AG
works with local partners on initiatives designed to
improve local living and working conditions. → Sustain-
ability, work-related rights and equal treatment and opportunities in
the value chain, → Equal treatment and opportunities within the own
workforce
↑↓ ↑ |||
Until the IPO on September 28, 2022, the company was
not required to establish a remuneration system for the
Executive Board in accordance with section 87a AktG.
The provisions in the Executive Board service contracts
existing at the time of the IPO did not fully comply with
the recommendations in section G. of the Code. For this
reason, the Supervisory Board resolved on September 14,
2022, with effect from January 1, 2023, a new
Management Board remuneration system that complies
with both the legal requirements and the
recommendations of the Code. The new remuneration
system was approved by the company's Annual General
The right to freedom of association is set out in the Basic
Law in Germany. There are no indications that the right to
freedom of association and collective bargaining is at risk on
the sites of Porsche AG and selected subsidiaries.
c) IPO bonus (G.6 and G.10 sentence 2 of the Code)
On July 20, 2022, the Supervisory Board agreed with the
members of the Executive Board on the granting of a
bonus ("IPO bonus") in the event of a successful IPO. The
IPO bonus was granted in the form of virtual shares.
These virtual shares will be converted into cash amounts
in three tranches over periods of one, two, and three
years, depending on the development of the stock
market price of the preference share issued by the
company in the respective period, and these cash
amounts paid to the Executive Board members. With
regard to the IPO bonus, the following recommendations
are not fully complied with:
According to recommendation G.6 of the Code, the
share of variable remuneration achieved as a result of
reaching long-term targets should exceed the share
from short-term targets. As a precautionary measure,
the Supervisory Board assumes that the first two
one-year and two-year tranches of the IPO bonus are
to be allocated to the short-term variable
remuneration and the last tranche of the IPO bonus
to the long-term variable remuneration of the
Executive Board members. As a result, the target
value of the short-term variable remuneration
promised to the Executive Board members for the
fiscal year 2022 exceeds the target value of the
long-term variable remuneration. The IPO bonus
granted in the fiscal year 2022 was not yet fully
settled in the current fiscal year 2023 either. Against
this background, a deviation from recommendation
G.6 of the Code continues to be declared as a
precautionary measure. Nevertheless, the
remuneration of the Executive Board overall
continues to be oriented toward the company's
sustainable and long-term development. The
payment of the IPO bonus in three tranches over one,
two, and three years leads, in the view of the
Supervisory Board, to a purposeful and appropriate
incentive for the members of the Executive Board,
which is not limited to preparations for the IPO, but
also takes into account how successful the IPO over
the long term is.
Finally, the members of the Executive Board can
dispose of the third tranche of the IPO bonus as part
of the long-term variable remuneration after three
years and not after four years as recommended in
G.10 sentence 2 of the Code. The payment of the IPO
bonus in three tranches over one, two, and three
years leads, as described above, in the opinion of the
Supervisory Board, to a purposeful and appropriate
incentivization of the Executive Board members.
The joint declaration of conformity by the Executive Board and
Supervisory Board can also be found on the company's website
at https://investorrelations.porsche.com/en/corporate-governance.
EXECUTIVE BOARD
The Porsche AG Executive Board has sole responsibility for
managing the company in the company's best interests, in
accordance with the Articles of Association and the Rules of
Procedure for the Executive Board issued by the Supervisory
Board. The business activities of the Executive Board are
divided into eight divisions. In addition to the Chairman of the
Executive Board, the other Board positions are: Procurement,
Car-IT, Research and Development, Finance and IT, Human
Resources and Social Affairs, Production and Logistics as well
as Sales and Marketing. Information on the composition of the
Executive Board and additional information about the members
of the Executive Board, including their CVs, can be found on
Porsche AG's website at
https://investorrelations.porsche.com/en/corporate-governance.
Working Procedures of the Executive Board
In accordance with Article 8 (1) of the Articles of Association,
Porsche AG's Executive Board is composed of at least two
people, with the precise number determined by the Supervisory
Board. As of December 31, 2023, there were eight members of
the Executive Board.
The Executive Board meets regularly. Meetings of the Executive
Board are convened by the Chairman of the Executive Board.
The Chairman is required to convene a meeting if requested by
any member of the Executive Board. The Chairman of the
Executive Board-or, if he is unable to do so, the Deputy
Chairman-presides over the Executive Board meetings. In
matters of material or fundamental importance as well as
certain matters specifically listed in the Rules of Procedure for
the Executive Board, the decisions are taken by the entire
Executive Board. The Executive Board takes decisions only after
prior debate, generally in meetings. It may also take decisions
using the written voting procedure if none of the members of
the Executive Board request without undue delay that an
Executive Board meeting be held. Resolutions of the Executive
Board are adopted by a simple majority of votes cast by its
members, unless the law or the Rules of Procedure for the
Executive Board stipulate a unanimous decision. In the event of
120
disclosed for the first time in the remuneration report for
the fiscal year 2022. Until the disclosure of the
remuneration report for the fiscal year 2022 on March
13, 2023, recommendation G.3 of the Code was
therefore not complied with for a transitional period.
Since the disclosure of the remuneration report for the
fiscal year 2022, the company complies fully with
recommendation G.3 of the Code.
CORPORATE GOVERNANCE
a) Temporary deviations until the validity of a new Executive
Board remuneration system and the adjustment of the
Executive Board service contracts (G.1, G.2 and G.10
sentences 1 and 2 of the Code)
During a transitional period lasting until the new Executive
Board remuneration system comes into effect and the
service contracts of the members of the Executive Board
have been adjusted (see below under a)) and until the
publication of the first remuneration report in accordance
with section 162 AktG (see below under b)), various
recommendations in section G. of the Code were temporarily
not complied with. In addition, various recommendations in
section G. of the Code with regard to the granting of an IPO
bonus to the members of the Executive Board (see below
under c)) were and will temporarily not be complied with.
CORPORATE GOVERNANCE DECLARATION
147 MEMBERS OF THE EXECUTIVE BOARD
149
MEMBERS OF THE SUPERVISORY BOARD AND COMPOSITION OF THE COMMITTEES
153
REMUNERATION REPORT 2023
135
↑↓ ↑ ||
CORPORATE GOVERNANCE DECLARATION
PURSUANT TO SECTION 289F AND SECTION 315D HGB
In the Corporate Governance Declaration, the Executive Board
and Supervisory Board report on the company's corporate
governance for the fiscal year 2023 in accordance with
sections 289f and 315d of the German Commercial Code
(HGB) and as stipulated in Principle 23 of the German
Corporate Governance Code.
In detail:
THE GERMAN CORPORATE GOVERNANCE CODE-
A BLUEPRINT FOR SUCCESSFUL CORPORATE
GOVERNANCE
DECLARATION OF CONFORMITY
In December 2023, the Executive Board and the Supervisory
Board of Dr. Ing. h.c. F. Porsche Aktiengesellschaft ("company")
declare pursuant to section 161 of the German Stock
Corporation Act (AktG) that the recommendations of the
German Corporate Governance Code of the "Government
Commission on the German Corporate Governance Code," as
amended on April 28, 2022 and published by the Federal
Ministry of Justice in the official section of the Federal Gazette
on June 27, 2022 ("Code"), have been complied with in the
period since submitting the last declaration of conformity in
December 2022 and will continue to comply with in the future,
with the following exceptions:
1. Age limit for Supervisory Board members (C.2 of the Code)
According to recommendation C.2 of the Code, an age limit
should be specified for members of the Supervisory Board
and disclosed in the Corporate Governance Statement. This
recommendation has not been and is not complied with. The
Supervisory Board continues to hold the view that the ability
to monitor and advise the Executive Board in the
management of the business does not cease upon reaching
a certain age.
2. Maximum limit of Supervisory Board mandates (C.5 of the
Code)
According to recommendation C.5 of the Code, members of
the Executive Board of a listed company should not have, in
aggregate, more than two Supervisory Board mandates in
non-group listed companies or comparable functions and
shall not accept the Chairmanship of a Supervisory Board in
a non-group listed company. A deviation from this
recommendation is declared with regard to one Supervisory
Board member. The Supervisory Board member holds
supervisory board mandates, each as chairman, in two listed
companies, namely Volkswagen AG and Traton SE, as well as
a supervisory board mandate in Bertelsmann SE & Co. KGaA
and is also chairman of the management board of the listed
company Porsche Automobil Holding SE. The company,
Volkswagen AG, and Traton SE do not form a group within
the meaning of the German Stock Corporation Act with
Porsche Automobil Holding SE. However, the Executive
Board and the Supervisory Board are convinced that the
Supervisory Board member has sufficient time available to
exercise his mandate at the company.
3. Disclosure of election proposals (C.13 of the Code)
According to recommendation C.13 Sentence 1 of the Code,
the Supervisory Board, in its election proposals to the Annual
General Meeting, should disclose the personal and business
relationships of every candidate with the company, the
governing bodies of the company and any shareholders with
a material interest in the company. The requirements of
recommendation C.13 sentence 1 of the Code are vague
and the definitions unclear. A deviation from this
recommendation is therefore declared as a precautionary
measure. Notwithstanding this, the Supervisory Board will
make every effort to satisfy the requirements of
recommendation C.13 sentence 1 of the Code.
4. Remuneration of the Executive Board (G.1, G.2, G.3, G.6 and
G.10 sentences 1 and 2 of the Code)
Corporate governance provides the regulatory framework for
corporate management and supervision. This includes a
company's organization and values, and the principles and
guidelines for its business policy. The German Corporate
Governance Code (the Code) contains principles,
recommendations, and suggestions for corporate management
and supervision. Its principles, recommendations, and
suggestions were prepared by a dedicated government
commission on the basis of the material provisions and
nationally and internationally accepted standards of sound,
responsible corporate governance. In the interests of best
practice, the government commission regularly reviews the
Code's relevance in light of current developments and updates
it as necessary. The Executive Board and the Supervisory Board
of Porsche AG base their work on the principles,
recommendations, and suggestions of the Code. For the
Executive Board and Supervisory Board of Porsche AG, good
corporate governance is a prerequisite and reflection of
responsible corporate governance. They consider this to be a
key prerequisite for achieving a lasting increase in the
company's value. It helps strengthen the trust of our
shareholders, customers, workforce, business partners, and
investors in our work and enables us to meet the steadily
increasing demand for information from national and
international stakeholders. The Executive Board and
Supervisory Board therefore aim to manage and monitor the
company in line with nationally and internationally accepted
standards in order to ensure sustainable value creation for the
long term.
The Porsche AG Group has resolved to continuously
reduce the consumption of materials and resources
along its entire value chain. Where possible, the
Porsche AG Group aims to transition material usage
into closed-loop recycling. → Circular economy
138
The Porsche AG Group analyzes the own CO2 emissions
and those of the vehicles to consistently avoid or reduce
them along the entire value chain through decarbon-
ization. The Porsche AG Group only offsets emissions
where this is not possible for technical reasons or at
a reasonable economic cost. → Energy and climate change
adaptation, → Climate change mitigation
- The Executive Board as a whole should have technical
expertise, especially knowledge of and experience in the
manufacture and sale of vehicles and engines of any kind as
well as other technical products, and experience in the
international domain.
-The Executive Board as a whole should have many years of
experience in research and development, procurement,
production, sales, finance and human resources
management, as well as law and compliance.
- At least one Executive Board position should be held by
a woman.
- The Executive Board should also have a sufficient mix
of ages.
The aim of the diversity concept is for the Executive Board
members to embody a range of expertise and perspectives. This
diversity promotes a good understanding of Porsche AG's
organizational and business affairs. Particularly, it enables the
members of the Executive Board to be open to innovative ideas
and to avoid groupthink. In this way, it contributes to the
successful management of the company. In deciding who
should be appointed to a specific Executive Board position, the
Supervisory Board takes into account the interests of the
company and all the circumstances of the specific case. In
taking this decision and in long-term succession planning, the
Supervisory Board orients itself on the diversity concept. The
Supervisory Board is of the view that the diversity concept is
reflected by the current composition of the Executive Board.
The members of the Executive Board have many years of
professional experience, also in an international context, and
cover a broad spectrum of educational and professional
backgrounds. The Executive Board as a whole has outstanding
technical knowledge and many years of collective experience in
research and development, procurement, production, sales,
finance and human resources management, as well as law and
compliance. In addition, the Executive Board has a sufficient
mix of ages that corresponds to the requirements set by the
Supervisory Board; the gender balance also meets the
requirements set by the Supervisory Board up to now and the
legal requirements. Long-term succession planning within the
meaning of Recommendation B.2 of the Code is achieved
Corporate Governance Corporate Governance Declaration
139
↑↓ ↑ 0 |||
- Members of the Executive Board should-if possible-have
experience based on different training and professional
backgrounds.
Occupational health and safety management
and organization
The group guideline considers various internal stakeholder
groups, including managers on all hierarchical levels, health and
safety officers within the Group, experts in occupational health
and safety, and works doctors. At the same time, the company
guidelines of Porsche AG describe the requirements of external
stakeholders, such as health and safety regulators and profes-
sional associations. Furthermore, Porsche AG applies the stan-
dards ISO 45001 "Occupational health and safety management
systems" and DGUV Regulation 1 "Principles of Prevention."
The requirements of the group guideline on occupational safety
are set out in Porsche's group manual on occupational health
and safety management, which applies to all companies of the
Porsche AG Group and its entire workforce. On a group level,
occupational health and safety is also part of the Code of Con-
duct, in which employees are regularly trained.
Vision of occupational safety
Embrace a culture of safety and
responsibility
The safety of its employees is a top priority for the Porsche AG
Group. Consequently, occupational health and safety is
enshrined at the highest level on the Executive Board. The newly
formed "Executive Board Occupational Health and Safety Con-
ference" board, comprising representatives from the Executive
Board and Group Works Council, is set to start work in the first
quarter of 2024 and further safeguard this responsibility. The
occupational safety committees prepare regular reports on
occupational hazards, the results of which are then used to opti-
mize the occupational health and safety management system.
Within Porsche AG and selected subsidiaries, the specifications
of the group guideline on occupational safety are reviewed
regularly by works doctors and occupational health and safety
experts as part of inspections with executives, employee rep-
resentatives, and safety officers. In the event of a shortcoming,
they define appropriate corrective measures.
The annual surveys in connection with the German Supply Chain
Due Diligence Act (LKSG) inquire as to whether the minimum
legal occupational health and safety requirements are being
met by subsidiaries as well as the requirements of the group
guideline on occupational safety.
Safest employer in the
The group guideline on occupational safety governs the central
processes and responsibilities relating to occupational health
and safety throughout the Porsche AG Group. It is an essential
element of the Porsche-Compliance-Management-System.
Subsidiaries must implement the group guideline through a
corresponding company guideline.
automotive industry
Members of the Executive Board should have many years of
management experience.
Diversity Concept and Succession Planning for the
Executive Board
Work-life balance
In addition to the statutory care leave in Germany, Porsche AG,
Porsche Deutschland GmbH, and Porsche Leipzig GmbH offer
"Porsche Care Leave," which, when various criteria are met,
enables permanent employees with at least six months of
service to care for their next of kin for up to three months and
continue to receive part of their salary.
With the introduction of a new company pension system,
additional employee benefits are available at Porsche AG and
selected subsidiaries concerning protecting against risks
through inability to work and death. Certain groups of employ-
ees at Porsche AG and selected subsidiaries are even provided
with additional accident cover.
Aside from employer-financed old-age pension benefits,
Porsche AG and selected subsidiaries offer employees the
chance to increase their old-age pension benefits-as well as
the benefits received by their survivors in the event of death-
through deferred compensation from their gross salary.
124
↑↓ ↑ |||
123
Sustainability Social
Concerning old-age pensions, employer-financed pension
entitlements are formed based on full-time or part-time remu-
neration at Porsche AG and selected subsidiaries; in accordance
with the statutory regulations, a vested entitlement to pension
benefits must be maintained after an employee has three years
of service with the company.
The Supervisory Board is mindful of diversity in the composition
of the Executive Board. The Supervisory Board understands
diversity, as an assessment criterion, to mean in particular
different yet complementary specialist profiles and professional
and general experience, also in the international domain, with all
genders being appropriately represented. The Supervisory
Board also takes the following aspects into account in this
regard, in particular:
In addition to the remuneration, Porsche AG and selected sub-
sidiaries offer discounts and employee benefits, such as capital
formation benefits and a company old-age pension plan.
At Porsche AG and selected subsidiaries, the remuneration
policies and amounts paid to employees covered by a collective
agreement and in management-within and outside of the col-
lective bargaining agreement-are based on collectively agreed
or company regulations. The basic remuneration is determined
based on described work tasks, with consideration for knowl-
edge and abilities, problem-solving skills, potential influence,
and fields of responsibility. Collective and company regulations
also provide for one-off payments. Market-specific particular-
ities and benchmarks are also considered for the purposes of
offering competitive remuneration.
Remuneration and employee benefits
a tie, the Chairman of the Executive Board casts the deciding
vote. Each Executive Board member manages his Board
position independently, without prejudice to the collective
responsibility of the Executive Board. All Executive Board
members must inform each other of major events and
measures within their Board position. The Porsche AG Group
companies are managed solely by their respective
management. The management of each individual company
takes into account not only the interests of their own company
but also the interests of the group in accordance with the
framework laid down by law. Executive Board committees exist
on the following topics: products, investments, digitalization as
well as product quality and customer satisfaction. Alongside the
responsible members of the Executive Board, the relevant
central departments and the relevant functions of the divisions
are represented on the committees.
Cooperation with the Supervisory Board
The Executive Board and the Supervisory Board cooperate
closely for the good of the company. The Chairman of the
Executive Board coordinates the cooperation with the
Supervisory Board and its members. He is responsible for
ensuring that the Supervisory Board is informed in a timely,
conscientious, and comprehensive manner. In addition, he is
responsible for ensuring the basis for the prosperous
development of the company through a constant exchange with
the Chairman of the Supervisory Board and through ongoing
consultation with him.
The Executive Board reports to the Supervisory Board at least
once a year on the intended business policy and other
fundamental questions relating to business planning
(particularly with regard to financial planning, investment
planning and human resources planning) as well as the
profitability of the company. The Executive Board also regularly
informs the Supervisory Board about the progress of business,
particularly sales revenue and the position of the company.
Transactions that could be significant for the company's
profitability or liquidity must be reported to the Supervisory
Board by the Executive Board as promptly as possible, giving
the Supervisory Board the opportunity to issue a statement on
the transaction before it takes place. The Chairman of the
Executive Board must also immediately inform the Chairman of
the Supervisory Board about other important matters.
With the exception of the immediate reports by the Chairman
of the Executive Board to the Chairman of the Supervisory
Board on matters of particular importance, the Executive Board
reports to the Supervisory Board in text form as a rule.
Key decisions by the Executive Board, such as the annual
planning round, a major realignment of the company's business
activities, significant financial transactions, larger acquisitions,
and financial measures as well as the establishment, relocation,
and dissolution of branches and certain production sites, are
subject to the approval of the Supervisory Board.
The remuneration system for the management of Porsche AG
and of selected subsidiaries was restructured in the 2023
financial year. The system's structure is generally based on
the remuneration system for the Executive Board. Personal
performance is also factored into the rate of achievement for
the short-term incentive (STI). The long-term incentive (LTI)
is based on stock price performance and on the earnings per
share (EPS) of Porsche AG, which is an economic performance
indicator. Remuneration report
A work-life balance is tremendously important to the
Porsche AG Group, so it supports its employees with a wide
variety of different measures and options. For example, local
cooperation partners ensure that childcare places are avail-
able in kindergartens close to selected Porsche AG locations.
In emergencies, additional childcare places are also available
at day-care centers in Stuttgart. Parents can also take their
children to work at Porsche AG for a few hours. In summer, the
children of employees can attend a summer day camp that runs
throughout the holidays. With its family service, Porsche AG
offers extensive, free, and individually tailored advice and
support on all aspects of family life-in particular, for expecting
parents and employees caring for relatives.
Safe and healthy workplace at
all times
illnesses
The health management team at Porsche AG also advises its
German locations on the organization of first aid and deploys
qualified paramedics to support acute and emergency health
care at the major locations.
Additionally, its scope of services includes a wide range of
occupational health promotion services. These include the
"Porsche Check-up" (a regular health check for employees), vac-
cinations, as well as nutrition, stress management, and exercise
courses for employees of Porsche AG. Employees with cancer
have access to OncoCure, a service that helps obtain a second
opinion from a doctor. Additionally, in-house physiotherapists
offer advice on ergonomics in the workplace.
n combination with an advanced training program (such as
specialist training), the high standard of training of the medical
personnel guarantees a high standard of quality for the medical
services. This is supported by clearly defined process descrip-
tions, working groups and team rounds both within depart-
ments and across different sites, and regular consultations on
the management levels. An extensive qualification policy is also
in place for occupational health and safety experts and medical
professionals specializing in occupational health, providing
internal and external training courses to ensure that they obtain
and maintain the necessary occupational health and safety
skills.
Porsche AG always guarantees the protection of occupational
health and safety data, as personal health data are stored in an
IT system that successfully passed a data protection audit in
2022. The handling of data within the software is governed by a
group works agreement with Porsche AG. This guarantees that
the data will not be used to the detriment of the workforce.
Working conditions and employee retention
Besides a safe, healthy working environment, other working
conditions play an important role for current-and future-
employees of the Porsche AG Group.
In Germany, several laws are in place to implement minimum
standards for working conditions (such as the Part-time and
Fixed-term Work Act, Works Constitution Act, Hours of Work
Act, Supply Chain Due Diligence Act, and many others), and
these are complemented or built on by collective bargain-
ing agreements at Porsche AG and selected subsidiaries. For
Porsche AG, for example, this is the regional collective agree-
ment for the metal and electrical industry. Companies with
elected employee representatives, for example, are also subject
to works agreements that regulate working conditions within
the scope of corporate codetermination-governed by the
German Works Constitution Act (BetrVG).
On a national level, the national subsidiaries of the Porsche AG
Group that are bound by collective agreements are also subject
to regulations concerning collective agreements as well as
regulations concerning the maximum terms of employment
contracts. At Porsche AG, for example, an employment contract
in the formerly industrial area of production can currently be
given a maximum term of 48 months without a material reason
until the end of July 2025 at the latest.
In the past, most temporary employment contracts could
be transferred into an indefinite employment contract with
Porsche AG. Additionally, a maximum rate of fixed-term or
temporary employment contracts has been agreed with the
Works Council for Porsche AG and selected subsidiaries, such
as Porsche Financial Services GmbH, Porsche Engineering
Group GmbH, Porsche Engineering Services GmbH, or Porsche
Deutschland GmbH.
Porsche AG's Health Management division also provides social
counseling to those with psychosocial stress and support for
those in difficult life situations. It is available to the whole work-
force at Porsche AG and selected subsidiaries.
The working conditions for employees are governed in numer-
ous guidelines and frameworks at the Porsche AG Group. These
include, for example, the guidelines on labor and social security
law and HR compliance, which apply to all employees of the
Porsche AG Group and are freely accessible to them.
- Declaration of intent to observe and promote
human rights
In a declaration of intent, the Executive Board and Group
Works Council of Porsche AG commit to observe human
rights and promote good working conditions and fair in
this context. The focus is on employees at national and
international locations, including employees of companies
belonging to the Group, over which Porsche AG exercises
à determinative influence, as well as employees of direct
suppliers. The declaration of intent is publicly accessible free
of charge online.
- Code of Conduct
The Executive Board has adopted a Code of Conduct for the
Porsche AG Group. It sets out the most important principles
and expectations relating to lawful, honest, and sustainable
conduct for all employees of the Porsche AG Group. These
include, for example, how to handle conflicts of interest, the
prevention of all forms of corruption, appropriate behavior
within the Group and towards customers, business partners,
and officials, as well as the assumption of responsibility for
business, the environment, and society. The Code of Conduct
is publicly accessible free of charge online.
- Collective bargaining agreements
In Germany, Porsche AG and most of its German subsidiaries
are parties to (company-based) collective bargaining agree-
ments with the workforce, excluding executives.
Circular economy:
Porsche AG is a member of the employers' association
Südwestmetall and is therefore part of the social partner-
ship between the metal and electrical industry and the IG
Metall trade union. The agreed regional collective agree-
ment therefore applies to the employees of Porsche AG.
Porsche Leipzig GmbH has been a member of the Saxony
Employers' Association for the Metal and Electrical Industry
(VSME) since January 1, 2019; the transitional bargaining
agreement agreed with IG Metall applies to its employees.
Other companies, such as Porsche Financial Services GmbH,
Porsche Engineering Group GmbH, Porsche Engineering
Services GmbH, or Porsche Dienstleistung GmbH, have
concluded company-level collective agreements with IG
Metall. Porsche's subsidiaries are subject to the frame-
work agreements in the automotive industry, whereas
Porsche Deutschland GmbH has a company-level collective
agreement.
The working conditions are also determined by the following
guidelines and frameworks:
Take preventative action to avoid unsafe situations and work-related
Aside from safety, employees and managers receive occupa-
tional health services. The works doctors at Porsche AG and its
vehicle-producing subsidiaries in Germany advise personnel on
health and physical capability, offer preventive examinations,
and assess the results of their examinations. They support the
reintroduction of employees to the workplace after an extended
illness as part of the occupational reintegration management
system. Furthermore, in accordance with the German Occu-
pational Safety Act (ASIG), they assist with the planning and
design of healthy and ergonomic workplaces.
All employees are briefed on occupational safety at least
once a year to ensure that they are kept up to date on specific
hazards and rules of conduct. The intranet also contains a broad
range of information and education on health and safety in the
workplace. If they need advice, employees also have access
to works doctors and occupational health and safety experts
who undergo regular further training in and outside of their own
disciplines. Managers are obligated to participate in internal
advanced training in responsibility and tools in occupational
health and safety.
Occupational hazards that are potentially the result of an
infringement of occupational health and safety regulations
can also be reported anonymously to the Porsche compliance
organization and the ombudsman system.
In the event of workplace accidents, the causes are analyzed in
detail and measures are implemented to avoid future accidents.
Porsche AG measures the occurrence of workplace accidents
in all organizational units with the "occupational accident
index" and reports them internally each month. Porsche AG and
selected subsidiaries use software to help document, process,
and analyze accidents to ensure that they are processed as
quickly and transparently as possible. Automated reminder and
escalation functions ensure that measures are implemented in
good time. The procedure is also defined in process and work
instructions: after an accident is reported, a manager performs
an accident analysis with the support of an occupational health
and safety officer. This serves to define immediate and correc-
tive measures to tackle the cause of the accident.
Occupational safety and prevention
The goal of sustainable occupational health and safety is for
employees not to suffer any accidents at work. Therefore, the
actions of every manager and employee should be guided by the
principle of safety to avoid accidents and other health risks from
the outset, if possible.
This applies to the design of workstations, equipment, and
installations. Potential hazards are identified and assessed even
as they are being set up.
Occupational hazards and the resulting risks are defined and
assessed as part of a risk assessment, as defined in section 5 of
the German Occupational Safety and Health Act (ArbSchG) and
in the group guideline on occupational safety. It is performed at
regular intervals or whenever necessitated by events or changes
in the workplace. In the assessment, the risks are first identified
systematically before being described and then assessed using
a risk matrix. If a hazard is categorized as a high risk, appropriate
measures must be defined and drawn up. The hierarchy of mea-
sures set out by law applies: technical measures before organi-
zational measures before behavioral measures. An effectiveness
check is then performed to verify whether the defined measures
are reducing the risk effectively. The risk is then assessed again
and, if it has been reduced sufficiently, documented. The work-
force is subsequently briefed on the most important aspects of
the risk assessment.
Work equipment must also be inspected regularly, and protec-
tive measures designed to minimize risk must be defined and
implemented. Occupational health and safety experts assist
with risk assessments and standard operating procedures.
Preventative health management
The managers of Porsche AG and selected subsidiaries are
informed in writing of their duties relating to occupational
health and safety and are required to confirm this transfer of
duties in writing.
Culture of safety and involvement
of the workforce
All these measures contribute to the continuous improvement
of safety at Porsche AG and selected subsidiaries and guarantee
that Porsche's occupational health and safety is consistent with
the relevant legal regulations, which also improves its occupa-
tional health and safety management system in the process.
The overall culture of safety at the company is promoted at the
same time.
Porsche AG utilizes a range of communication channels to
inform employees about health and safety in the workplace. In
2023, for example, an occupational safety and mental health
campaign was launched to promote the culture of safety and
generally raise employee awareness of these topics. All cam-
paigns were developed in coordination with the Works Council.
Employees are also involved in the development, implemen-
tation, and evaluation of the occupational health and safety
management system. This means that the preparation and
revision of the group guideline and its supporting documents
were also coordinated with employee representatives. They are
involved in decision-making processes through various com-
mittees and at the "Executive Board Occupational Health and
Safety Conference," enabling them to play a direct role in the
implementation and evaluation of the occupational health and
safety management system. Employees can submit ideas and
suggestions relating to occupational health and safety via the
idea management portal at any time or consult an occupational
health and safety expert or works doctor directly.
Sustainability Social
121
↑ ↓ ↑ 0 |||
122
In accordance with the German Occupational Safety Act (ASIG),
the employees of Porsche AG and selected subsidiaries are
represented on occupational health and safety committees
by their legally appointed representatives. These site-spe-
cific committees convene four times a year and consist of the
employee representatives, safety officers, and representatives of
the management.
The occupational health and safety committee of the Works
Council also meets at regular intervals or as necessary. This
committee discusses and coordinates on individual aspects and
concerns relating to occupational health and safety.
Employees of external companies are also subject to precise
codes of conduct designed to preclude hazards as much as
possible when they work at the locations of Porsche AG and
selected subsidiaries. This applies to construction work for
Porsche AG and Porsche Leipzig GmbH as well as the procure-
ment and assembly of machines and systems. At the visitor
receptions on the factory premises, visitors are required to
confirm that they have acknowledged and will comply with
safety notices. A set of work instructions governs how statu-
tory duties of cooperation and coordination in connection with
occupational health and safety are fulfilled when third-party
companies are deployed on the factory premises of Porsche AG
and selected subsidiaries. In cases of temporary employment,
binding framework agreements on occupational health and
safety are concluded with the employment agencies.
Further options at Porsche AG range from flexible working hours
aligned to the employee's current phase of life and diverse part-
time options to a wide range of flextime policies, such as during
parental leave and sabbaticals.
Driven by
safety & health
Where possible, Porsche AG and selected subsidiaries con-
sider the individual needs of the workforce and promote
flexible working options with regard to workplace and work-
ing hours. In doing so, Porsche AG and selected subsidiaries
can give employees a high degree of flexibility. Porsche AG
further enhanced this flexibility in 2021 with the amended
of production material purchased
from direct suppliers of Porsche AG
in compliance with the strictest
internal quality standards relating
to sustainability (S-rating "A") by
2030.
90%
SOCIAL
128
GOVERNANCE
GOVERNANCE
127
Sustainability Social
In the reporting year, Porsche AG successfully implemented and
approved the Porsche safety standard for the Panamera series,
as has been the case with all other series so far too, and secured
access to the market. Consequently, these vehicles received
official approval as part of the standard operating procedure.
Porsche AG was able to demonstrate that the legal require-
ments are being met worldwide.
of the production material pur-
chased from direct suppliers of
Porsche AG already meets the
strictest quality standards within
the scope of the S-rating in 2023.
Once approved for road use, all Porsche vehicles undergo strict
inspections according to the in-house quality management
system at Porsche AG. These include a final inspection of their
safety from development and production to after-sales.
Child safety is another key focal point in the field of vehicle
safety. As such, vehicles and child car seats are designed to
provide optimal protection for children of all ages and sizes in
the event of an accident.
For example, all the areas involved with "front protection" are
pooled within one department at Porsche AG, from the structure
of the vehicle and the arrangement of components in the front
end to energy dissipation, deceleration characteristics intended
to protect passengers in the event of a frontal accident, and
restraint systems (seat belts and airbags). Additionally, the spe-
cialist area pools all necessary development methods-compo-
nent and system simulations and tests as well as overall vehicle
testing. This further refines the safety features and improves
them until they are ready for series production.
The vehicle safety departments at Porsche AG bear responsibil-
ity for the safety of individual vehicle components and systems.
They work together centrally in the vehicle development stage.
Each project coordinator examines the corresponding key
figures. The head of the relevant specialist area oversees giving
final approval for safety features.
Porsche AG and the Volkswagen Group coordinate on vehicle
safety requirements and procedures in several working groups,
including the Safety working group that meets three times a
year. The group consists of all the safety officers of the brands of
the Volkswagen Group.
Porsche AG revises and updates its safety standards regularly.
Therefore, Porsche AG continuously monitors the changing
legal situation in every target market as well as the activities
of consumer protection organizations. It also performs regular
analyses of the current state of vehicle safety technology from
a competitive standpoint. Furthermore, field observations and
accident analyses provide important information about the
safety of Porsche vehicles that is factored into their design.
On the other hand, the safety standard also contains some of
Porsche AG's standards relating to the safety of Porsche vehi-
cles. These standards can go far beyond the legal requirements.
They are based on the current state-of-the-art and consumer
protection requirements. From these, Porsche AG also derives
specific target specifications for passive vehicle safety to
minimize the potential consequences of accidents for everyone
involved.
On the one hand, the Porsche safety standard ensures confor-
mity with the laws in the target markets. To this end, the Tech-
nical Conformity department at Porsche AG monitors the course
of legislative processes worldwide as well as their regulatory
and technical frameworks. It raises awareness of conformity,
delivers transparency with regard to new and existing require-
ments in all target markets, and promotes long-term process
reliability, stability, and quality.
Porsche AG does not use an individual indicator to measure
vehicle safety across the board. Rather, vehicle safety goes
beyond a safe overall vehicle with safe structures; it also means,
for example, safety for everyone inside and outside of the vehi-
cle, a safe fuel system, and safe high-voltage technology.
The safety standard of Porsche AG is the authoritative vehicle
safety document. It is part of the safety strategy adopted by the
Executive Board of Porsche AG in 2021, which is set to remain
in place until 2030. A comprehensive catalog of requirements
describes how the safety standard is to be implemented in a
binding manner and adhered to, regardless of the vehicle model
or market. It applies to all series and derivatives in all target
markets around the world, yet it also contains versions that are
specific to individual vehicle projects. The catalog of vehicle
safety requirements is updated regularly.
The protection of other road users, such as pedestrians, is also
a key element in the development of vehicle safety. Measures
designed to meet the existing pedestrian safety requirements
are implemented in cooperation with the Exterior Design
department and the attachment development departments
(such as fairing and headlights).
The personal safety of all road users is important to Porsche AG.
Therefore, Porsche AG considers vehicle safety and the optimal
protection of drivers and passengers a high priority. The safety
of other road users is also important.
ENVIRONMENT
of the direct suppliers of Porsche AG
are audited on the basis of sustain-
ability criteria.
CO₂
Decarbonization:
In turn, all three pillars are geared towards three courses of
action:
Flexibility in the workplace and reduction
of working hours
130
↑↓ ↑ ||
129
Sustainability Governance
The Porsche AG Group pursues defined objectives within the
scope of legal and internal regulations. The Porsche AG Group
codified these in the form of three pillars in its procurement
strategy in 2023: "Supply chain resilience" contains criteria for
awarding contracts, transparency, partnership structures, and
digital matters. "Profitability" focuses on planning accuracy and
deals with long-term contracts. The third pillar is "Supply chain
sustainability" and contains criteria relating to water consump-
tion and strategic dialogs with direct suppliers.
100%
Ambitious internal objectives
- The company guidelines on the procurement of production
material at Porsche AG set out a framework for the produc-
tion material procurement process. This framework com-
prises two core processes: forward sourcing (the procure-
ment of new vehicle parts) and global sourcing (the selection
and validation of direct suppliers for vehicle components that
are already in mass production). The guidelines define the
operational process stages and describe strategic procure-
ment processes, procurement planning, and tool documen-
tation as well as how price risks are to be handled.
- The objective of the group guidelines on supplier risk
management is to standardize procedures intended to
rapidly identify and control risks relating to suppliers who
are financially unstable, in acute financial crisis, or insolvent.
Standardized procedures are meant to minimize supply risks
and the resulting costs if a direct supplier's delivery capacity
deteriorates for financial reasons.
The Porsche AG Group has enacted multiple guidelines under-
lining its determination to enforce high standards in the supply
chain:
The legal requirements also broadened in scope in the report-
ing year with Germany's new Supply Chain Due Diligence Act
(LKSG). Consequently, the strategic significance of a responsi-
ble, environmentally friendly supply chain that respects human
rights has risen even further in the eyes of the Porsche AG
Group.
As its range of vehicles is increasingly electrified, the supply
chain of the Porsche AG Group is becoming increasingly com-
plex: new components and types of technology are involved, and
the number of direct suppliers of production materials is rising.
The need for potentially high-risk raw materials, especially for
battery manufacturing, is also growing. The proportion of CO2
emissions of the Porsche AG Group attributable to the vehicle
supply chain is currently around one-fifth of the greenhouse gas
emissions of the vehicles' entire value chain, as measured using
the Decarbonization Index (DCI). As the proportion of all-electric
vehicles increases, the Porsche AG Group anticipates that the
proportion of supply-chain-related CO2 emissions might also
rise further-not accounting for decarbonization measures.
→ Climate change mitigation
MANAGEMENT OF RELATIONSHIPS WITH
SUPPLIERS INCLUDING PAYMENT PRACTICES
WIRTSCHAFTS-
WACHSTUM
ARBEIT UND
MENSCHENWÜRDIGE
The objective of the guidelines is more effective procurement
on a standardized level of quality. Through this, Porsche AG
aims to minimize potential risks relating to costs, quality,
supply security, compliance with legal specifications and
official orders, scheduling, liability, and the financial stability
of direct suppliers to the greatest extent possible. The gov-
erning bodies in charge are the Porsche Sourcing Committee
(PSC) for the procurement of production materials and the
Corporate Sourcing Committee (CSC) of the Volkswagen
Group. Involving the vehicle brands, regions, and depart-
ments of the Porsche AG Group and in coordination with the
CSC, the PSC makes all decisions concerning contracts for
purchased parts within the scope of the global sourcing (for
newly developed vehicle components) and forward sourcing
(for existing vehicle components) processes. → Sustainability,
work-related rights and equal treatment and opportunities in the value chain
PERSONAL SAFETY OF CONSUMERS
AND/OR END USERS
88.3%
The environmental impacts of Porsche AG's business activities
can also affect residents living in the direct vicinity of Porsche
locations as well as people in neighboring areas. Consequently,
Porsche AG and Porsche Leipzig GmbH measure and monitor
the environmental impacts of the production locations in Stutt-
gart-Zuffenhausen and Leipzig as well as at the Development
Center in Weissach, including energy and water consumption,
waste, and the relevant impacts on the air, soil, and water. In
areas with moderate and high water stress levels, in particular,
Porsche AG aims to further reduce its water consumption and
effluents and, in turn, minimize its impact on the drinking water
and groundwater in the region. → Pollution and substances of concern,
→ Water and marine resources
Corporate codetermination
In the reporting year, Porsche AG had a budget of €10 million
and a wide range of personalized advanced training courses
for advanced training within the scope of the transformation.
Additionally, wherever operationally possible, Porsche AG always
endeavors to assign appropriate tasks to employees whose
working capacity has changed (i.e. employees who have been
limited by an accident or illness).
For example, Porsche AG offers personal advice to all employ-
ees affected by obsolescence. These consultations explore an
employee's personal interests, strengths, and possible future
roles, and plan the necessary advanced training.
A wide range of options are available for employees to qualify
for specific future roles and develop on a personal level. → Equal
treatment and opportunities within the own workforce
The transformation of the automotive industry is in full swing
and is affecting the Porsche AG Group in terms of electric mobil-
ity, digitalization, and new business models. As an employer, the
Porsche AG Group aims to make the transformation sustainable
and socially ethical-and both accompany and support its
employees in this time of change.
Socially ethical transformation
To attract talented young people to its employer brand at an
early stage, Porsche AG works with universities and target
groups of students, including as part of the racing car engineer-
ing student competition Formula Student Germany. With regard
to student marketing, the Ferry Porsche Award was presented
to over 200 school pupils in Baden-Württemberg in 2023. In
cooperation with the Ministry of Culture, Youth and Sport in
Baden-Württemberg, Porsche AG presents this award to honor
talented young people who excel in the field of natural sciences.
A wide range of external communication formats are used
to further improve employer attractiveness. For instance,
Porsche AG is refining its general image as an employer through
the new "Porsche Dream Job" employer branding initiative and
showing that "Driven by Dreams" is not exclusive to its customer
base, as employees are driven by dreams too. It is also using
specific communication formats, such as the social media series
"Women in MINT" or "Tech Talks," to target profiles of great
strategic relevance in the growing labor market.
Verified employer ratings by students are just one piece of
evidence that Porsche AG is already considered an attractive
employer. Porsche AG topped the rankings of Trendence and
Universum again in 2023 and managed to further improve its
popularity among the sought-after target group of IT and com-
puter science students.
Porsche AG's main site is in Germany, which means it is required
by national law to engage in corporate codetermination. At the
same time, it is an important pillar of the corporate culture.
Porsche AG wants its employees to share in its success and to
safeguard their jobs. Corporate codetermination is based on
a constructive, cooperative dialog between the employer and
employee representatives. The Porsche AG Group has a long
tradition of open, trusting cooperation and it always strives to
balance both sides' interests fairly. This position is codified in
the Code of Conduct.
Employer attractiveness is measured continuously based on
external surveys (such as by the Trendence Institute or the
employer rating platforms kununu and Glassdoor) and poten-
tial improvements are derived from these. The developments
are shared regularly on the level of the Executive Board and
reported on in annual target reviews.
Attractive employer
Selected subsidiaries of the Porsche AG Group also gauge
and promote employee satisfaction on a continuous basis. For
example, Porsche Financial Services GmbH organizes "cultural
dialogs" in the form of workshops throughout the year.
is to increase long-term employee satisfaction. The survey
is tailored to Porsche AG specifically and contains questions
regarding teamwork, employee engagement, and strategic
issues such as sustainability and diversity. Overall, more than
19,000 employees at Porsche AG took part in the survey. This
means that the participation rate is around 81%. The total
index derived from the average of all questions is 74.8 out of a
possible 100 points.
In the reporting year, Porsche AG initiated and carried out its
new employee survey "Porsche Puls" for the first time. Its goal
Employee satisfaction
In the reporting year and in previous years, there were no mass
layoffs or large-scale job cuts at Porsche AG or selected sub-
sidiaries. Under the existing works agreement on site security,
involuntary redundancies are prohibited at Porsche AG and
selected subsidiaries until the end of July 2030.
In some cases, Porsche AG and selected subsidiaries offer
flexible working hours and working hour reductions beyond
the minimum legal requirements. Within the scope of supple-
mentary company regulations, employees have the option of
flextime. Various part-time models, flexible working hours, and
part-time are available during parental leave, care or educational
leave, as is the option of a sabbatical. Job sharing is even an
option in managerial roles.
Looking ahead, Porsche AG is focusing on a healthy mix of
on-site and mobile work to uphold the unique Porsche culture,
which is characterized by personal relationships and shared
experiences. These rules also apply to selected subsidiaries of
Porsche AG, such as Porsche Leipzig GmbH, Porsche Consulting
GmbH, Porsche Engineering Group/Services GmbH, Porsche
Deutschland GmbH, and Porsche Financial Services GmbH.
works agreement regarding mobile working, and facilitates
mobile working on up to twelve full days per calendar month.
Employees can also work remotely by the hour at any time if
the needs of the company permit it. Mobile working was rolled
out abroad in the first quarter of 2023. Under certain condi-
tions, this will enable employees in almost every EU member
state to work remotely for up to 20 days per calendar year.
The Porsche AG Group wants to remain a highly attractive
employer in the future. Consequently, one of the four overriding
objectives of the Porsche Strategy 2030 is as follows: "Be the
top employer of choice."
Employees and their elected representatives are notified punc-
tually and comprehensively of any important operational and
organizational changes. National laws are considered, although
corresponding notification deadlines are not set out in existing
works agreements.
The number of applicants, which remains high, is another
hallmark of an attractive employer-in the reporting year, the
Porsche AG Group received more than 140,000 applications for
just under 5,000 vacancies.
When they employ external workers, Porsche AG, and selected
subsidiaries, such as Porsche Leipzig GmbH and Porsche
Deutschland GmbH, adhere to the principle of "same work,
same pay". Additionally, the maximum length of service (such as
a maximum of 48 months for temporary workers in the product
development process) has been agreed based on the collec-
tively agreed provisions. At Porsche AG and selected subsid-
iaries, including Porsche Financial Services GmbH and Porsche
Leipzig GmbH, temporary workers with the right qualifications
are also given priority over external applicants when it comes to
filling a vacancy.
Responsible business and sustainability along the value chain
is a priority for the Porsche AG Group. Safe, reasonable working
conditions and the continuous minimization of environmen-
tal impacts-especially in regions where raw materials are
extracted-have a significant effect on the lives of employees in
the value chain and, in turn, on their communities. Porsche AG
therefore also expects good conduct from its direct business
partners and direct suppliers in line with a Code of Conduct.
Porsche AG monitors their compliance with duties of care
In this context, the Porsche AG Group actively strives to help
regions and communities protect the environment, provide
healthy living conditions, and strengthen social cohesion-at
its locations and all over the world. Aside from financial support,
the voluntary engagement of Porsche employees is an import-
ant element. Partner to society
The Porsche AG Group has identified residents and communities
as key stakeholders who have an interest in the decisions and
activities of the Porsche AG Group. Porsche AG therefore stays
in direct contact with residents and local stakeholders at its
production and development locations via liaisons and events,
discusses specific topics and issues with them, in necessary,
and provides a point of contact for complaints and suggestions.
→ Stakeholder dialog and materiality
Codetermination is guaranteed in a number of different ways,
including a supervisory board with equal representation, the
Works Council committees, the Economic Committee, and the
constant maintenance of the works agreement database on
the internal intranet. The workforce receives information about
current developments at regular intervals through meetings of
the workforce. "Transformation road maps" containing subject
areas that are set to be restructured or built up, as well as major
change projects that are preplanned years in advance and affect
employees, have been and are presented to employee represen-
tatives regularly.
Beyond the customers and employees of the company, the busi-
ness activities of the Porsche AG Group can affect communities
at Porsche's locations as well as the production sites of its direct
suppliers. The Porsche AG Group embraces its responsibility
to protect the environment and safeguard human rights and
strives to do business responsibly for communities all along its
value chain.
AS WELL AS CIVIL AND POLITICAL RIGHTS OF
COMMUNITIES
ECONOMIC, SOCIAL, AND CULTURAL RIGHTS
In Germany, legislation is in place to regulate the use of tempo-
rary workers. They are also regulated by collective agreements
and internal rules at Porsche AG and selected subsidiaries.
These regulations are adhered to by Porsche AG and selected
subsidiaries. At Porsche AG, for example, each department is
provided with information about the legal framework for tempo-
rary employment for this reason.
In particular, temporary workers are used at the locations of
Porsche AG and selected subsidiaries to maintain flexibility
in terms of the number of personnel. Temporary workers are
exclusively categorized as workers who are not employees. In
various areas of the company, they perform similar work to that
of permanent employees.
Working conditions for workers who
are not employees
relating to human rights and the environment under the German
Supply Chain Due Diligence Act (LkSG). → Sustainability, work-related
rights and equal treatment and opportunities in the value chain
↑↓ ↑ |||
Besides collective agreements, codetermination is therefore
a key driver of excellent work and helps enable employees to
actively involve themselves in the Porsche AG Group.
The complaints mechanism within the Porsche AG Group makes
a crucial contribution to upholding the company's values and
commitments. Its purpose is to discover and settle, if nec-
essary, potential grievances relating to business and human
rights. Employees can use the mechanism to report concerns
they might have relating to freedom of association or collective
bargaining to name just two examples. Corporate governance,
corruption, and bribery
Complaints management
↑↓ ↑ 0 |||
126
Where necessary and possible, steps are taken to minimize risks
even before the grievance has been fully investigated. Appro-
priate preventative and remedial action is initiated depending
on the outcome of the grievance procedure. The grievance
procedure is discontinued if no actual infringement can be
determined, even after an interview with the person who filed
the grievance.
125
Sustainability Social
III. Remuneration of the Executive Board members
serving in fiscal year 2023
1. EXECUTIVE BOARD MEMBERS IN FISCAL YEAR 2023
The members of the Porsche AG Executive Board in fiscal year
2023 were as follows:
- Dr. Oliver Blume has been a member of the Executive Board
since January 1, 2013 and Chairman of the Executive Board
since October 1, 2015. Additionally, he has been a member
of the Board of Management of Volkswagen AG since April
13, 2018 and the Chairman of the Board of Management
since September 1, 2022. Until December 31, 2022, Dr.
Blume did not receive any remuneration within the meaning
of section 162 (1) no. 1 AktG from Porsche AG, only from
- Andreas Haffner has been a member of the Executive Board
since October 1, 2015.
of Dr. Blume's work. The Volkswagen AG remuneration will
not be counted toward the Porsche AG remuneration.
- Lutz Meschke has been a member of the Executive Board
since November 6, 2009 and Deputy Chairman of the
Executive Board since October 1, 2015. He has also been a
member of the Executive Board of Porsche Automobil
Holding SE (Porsche SE) since July 2020 and receives
remuneration from Porsche SE for this role that is not
counted toward the remuneration from Porsche AG.
Barbara Frenkel has been a member of the Executive Board
since August 19, 2021.
On September 15, 2023, the Supervisory Board of Porsche AG
resolved to adjust the base salary and the target amounts of
the STI and LTI under the Executive Board remuneration
system with effect from January 1, 2024. Furthermore, on
February 28, 2024, the Supervisory Board resolved to adjust
the Executive Board remuneration system and to present the
adjusted Executive Board remuneration system to the Annual
General Meeting 2024 for approval. In the future, the return on
investment (ROI) financial sub-target is to be replaced by the
net cash flow margin (NCF margin) of the Porsche AG Group's
automotive segment. The NCF margin - unlike ROI - is one of
the five key performance indicators for managing the Porsche
AG Group, along with the operating return on sales (ROS).
These performance indicators are derived from the strategy
and the underlying strategic objectives and are essential
components of group planning and budgeting. From Porsche
AG's perspective, the NCF margin is therefore a more suitable
indicator than the current ROI sub-target for aligning the
remuneration of Executive Board members with the interests of
the company and the capital market. The ESG criterion of
employee satisfaction will be incorporated into the ESG factor
and the weighting of the ESG sub-targets adjusted. Adding
employee satisfaction is intended to reflect sustainability
aspects more broadly and place people more prominently at the
center of Porsche AG's actions. Maintaining a high level of
employee satisfaction will secure Porsche AG's leading role in
the competition for the best applicants. In order to adequately
capture the elements of the social ESG sub-target, which will
consist of three ESG criteria going forward, the environmental
ESG sub-target is to be weighted at 40% and the social ESG
sub-target at 60%. However, the decarbonization index (DCI)
will remain the most heavily weighted criterion. Following
approval by the Annual General Meeting 2024, the adjusted
Executive Board remuneration system will be applied
retroactively to all Executive Board members as of January 1,
2024.
Sajjad Khan has been a member of the Executive Board
since November 1, 2023.
Volkswagen AG. Starting January 1, 2023, Dr. Blume has
received remuneration from Volkswagen AG and Porsche
AG. The remuneration from Volkswagen AG and Porsche AG
will be calculated and paid out pro rata based on the scope
This includes the base salary paid for the fiscal year in
question, the fringe benefits granted for the fiscal year in
question, the service cost of company pensions, the annual
bonus granted for the fiscal year in question and paid out in
the following year, the LTI paid out in the fiscal year in
question whose performance period ends immediately before
the respective fiscal year, any benefits granted to new
Executive Board members for the fiscal year in question and
the payment amount for the sub-tranche of the IPO bonus
that is paid out in the fiscal year in question
Target
Intended to encourage lawful and
ethical behavior among Executive
Board members.
Non-competition payments are made
as compensation for observing the
post-contractual non-competition
covenant.
designed to attract qualified
candidates.
(Compensation) payments are
The aim of the IPO bonus is to promote
the commitment of the Executive
Board members in preparing the IPO
and, by its design as a three-year share
plan, also take into account the long-
term success of the IPO.
Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
per fiscal year, for the Deputy Chairman of the Executive
Board: €6,000,000 gross per fiscal year and for regular
Executive Board members: €5,000,000 gross per fiscal year
- For the Chairman of the Executive Board¹: €5,000,000 gross
Detlev von Platen has been a member of the Executive
Board since November 1, 2015.
Maximum remuneration is intended to
ensure that the remuneration of the
Executive Board members is not
unreasonably high when measured
against the peer group.
Albrecht Reimold has been a member of the Executive Board
since February 1, 2016.
2023
The Executive Board of Porsche AG has members who hold
mandates on other executive boards in addition to Porsche AG.
Some of the Executive Board members receive separate
remuneration for these mandates. For their work on the
Executive Board, its members do not receive additional
remuneration for discharging other mandates on management
bodies, supervisory boards or similar, especially in other
companies of the Volkswagen Group. If such remuneration is
nevertheless granted, it is counted toward the remuneration for
their work as a member of the Executive Board of Porsche AG
and reduces it accordingly - with the exception of the
remuneration received by Dr. Blume and Dr. Steiner from
Volkswagen AG and Mr. Meschke from Porsche SE.
- A clawback is not permissible if more than three years have
elapsed since the variable remuneration component was paid
Total fixed remuneration
Fringe benefits
Fixed remuneration
Annual base salary
Variable remuneration
Lutz Meschke 1, Deputy Chairman of the Executive Board; Finance and IT
Further details on the tables are presented below the individual
tables.
The service contracts of the Executive Board members contain
penalty and clawback rules. Porsche AG did not make use of
these rules in fiscal year 2023.
Pension expense is reported as service cost within the meaning
of IAS 19. The service cost in accordance with IAS 19 does not
constitute remuneration granted or owed within the meaning of
section 162 (1) sentence 1 AktG as it is not actually received
by the Executive Board member in the reporting year. Other
benefits such as surviving dependents' pensions and the use of
company cars during retirement are also factored in.
- Dr. Michael Steiner has been a member of the Executive
Board since May 3, 2016.
fiscal year in accordance with section 162 (1) sentence 1 AktG.
They thus include all benefits actually received in the respective
fiscal year, regardless of the fiscal year for which the Executive
Board members received them.
The following tables show the remuneration actually received
by members of the Executive Board in fiscal year 2023. The
remuneration reported as granted in fiscal year 2023 thus
consists of the base salary paid out in fiscal year 2023, the
fringe benefits, and the annual bonus paid in the month
following the approval of the consolidated financial statements
of Porsche AG for fiscal year 2023 for which the related service
has been fully performed. In fiscal year 2023, the LTI for
2020-2022 would also have been paid out to the extent that it
exceeded the guaranteed amount for fiscal year 2020 that was
paid out in 2021. Moreover, the guaranteed amount for fiscal
year 2022 was paid out in fiscal year 2023, as was the first
tranche of the IPO bonus with a one-year term. As Porsche AG
was not in default on the payment of remuneration
components, no remuneration owed is reported in the tables.
2.1. Overview in the tables
158
157
Corporate Governance Remuneration report 2023
The term "owed" (geschuldet) refers to all legally existing
liabilities for remuneration components that are due but
have not yet been fulfilled.
-The term "granted" (gewährt) refers to the actual receipt
(Zufluss) of the remuneration component.
In accordance with section 162 (1) sentence 1 AktG, the
remuneration report must report on the remuneration granted
and owed to each individual member of the Executive Board in
the last fiscal year. These terms are understood as follows:
2. REMUNERATION GRANTED AND OWED IN FISCAL YEAR
2023
The relative shares shown in the tables relate to the
remuneration components granted and owed in the respective
Option for the Supervisory Board to reduce the annual bonus
and LTI by up to 100% in the event of relevant misconduct
during the respective relevant assessment period or to request
repayment if such remuneration has already been paid out
Chairman of the Executive Board: €2,400,000;
Deputy Chairman of the Executive Board:
€2,800,000; Executive Board member:
€2,346,666
- Payment of a non-competition payment net of the pension
Measurement base/parameters
Remuneration component
↑↓ ↑ 0 |||
156
↑↓ ↑ |||
155
Corporate Governance Remuneration report 2023
1 Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
- Forfeiture of all outstanding tranches
without replacement or compensation in the
event of the Executive Board member being
responsible for termination for good cause
pursuant to section 626 BGB or revocation
of appointment because of gross breach of
duty pursuant to section 84 (4) AktG or
breach of (post-contractual) non-
competition covenant
-Pro rata reduction of the target amount if the
service contract starts or ends during the
fiscal year when shares are granted
In cash in the month following approval of the
consolidated financial statements of the
Porsche AG Group for the last fiscal year of the
performance period
Exit:
to ensure the long-term effect of the
behavioral incentives and support the
strategic target of achieving
competitive profitability.
Measured forward over four years
EPS of the Porsche AG Group
Performance
criterion:
Performance
period:
Payment:
200% of the target amount, i.e.:
Chairman of the Executive Board: €1,200,000; remuneration of the Executive Board
Deputy Chairman of the Executive Board:
members with the Porsche AG Group's
€1,400,000; Executive Board member:
long-term performance. The financial
€1,173,333
performance target EPS (earnings per
share) of the Porsche AG Group in
conjunction with share price
performance and the dividends paid,
measured over four years, is intended
The LTI serves to align the
Target
Short-term variable remuneration (STI) 2023
Other benefits
IPO bonus
Benefits agreed with new
Executive Board members for a
defined period of time or for the
entire term of their service
contracts
Post-contractual non-
competition covenant
Benefits in connection with a significant relocation, if any
or other financial disadvantages, if any
- Payments to compensate for forfeited variable remuneration
Forfeiture of all outstanding sub-tranches
without replacement or compensation in the
event of the Executive Board member being
responsible for termination for good cause
pursuant to section 626 BGB or revocation of
appointment because of gross breach of duty
pursuant to section 84 (4) AktG
-If the service relationship is terminated
during the performance period, payment not
until the regular date
Each sub-tranche at the end of the month
following the first, second and third
anniversaries of the IPO
Market capitalization of Porsche AG
Share price performance of the Porsche
preferred share including dividends
Maximum of 150% of the grant amount;
minimum of 70% of the grant amount
Not granted if market capitalization is below
threshold value
Dependent on market capitalization of
Porsche AG at IPO
- No non-competition payments if taking up work at
Volkswagen AG and/or in the Volkswagen Group
One, two and three years after the IPO (three
tranches)
Payment:
Performance
criteria:
Cap:
Threshold:
Grant amount:
Virtual share plan
Plan type:
Term:
1
Maximum remuneration
Penalty and clawback
Exit:
€
Dr. Blume receives a fringe benefit allowance from Volkswagen AG
950,000
65,987
1,015,987
71.7
2,025,627
Multiyear variable remuneration/long-term incentive (LTI)
22.5
636,827
Pension expenses
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Total variable remuneration
Tranche 1 of the IPO bonus
Guaranteed LTI 2022-2024
53.6
0.0
0
Guaranteed LTI 2022-2024
32.3
1.4
34,682
834,682
30.9
800,000
%
1,388,800
0
0.0
2,825,627
Cap:
↑↓ ↑ |||
159
Corporate Governance Remuneration report 2023
2,915,447
Total remuneration including pension expenses
2
327,993
100.0
2,587,454
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
Dr. Blume also receives remuneration from Volkswagen AG. This remuneration is not counted toward the remuneration from Porsche AG. The remuneration received
by Dr. Blume from Volkswagen AG in fiscal year 2023 is presented in the remuneration report 2023 of Volkswagen AG.
67.7
1,752,772
Total variable remuneration
324,342
3,149,969
Total remuneration including pension expenses
14.1
363,972
Tranche 1 of the IPO bonus
100.0
€
2023
Short-term variable remuneration (STI) 2023
Variable remuneration
Total remuneration including pension expenses
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
Total variable remuneration
4,011,789
386,206
100.0
3,625,583
72.0
2,609,596
10.0
363,972
Tranche 1 of the IPO bonus
16.5
596,424
Guaranteed LTI 2022-2024
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
45.5
1,649,200
28.0
1.8
26.2
Dr. Oliver Blume¹, Chairman of the Executive Board
%
Fixed remuneration
Fringe benefits
Total fixed remuneration
Fringe benefits
Annual base salary
Fixed remuneration
49.2
1,388,800
28.3
800,000
0.0
0
28.3
800,000
Barbara Frenkel, Member of the Executive Board; Procurement
%
€
1 Mr. Meschke also receives remuneration from Porsche SE. This remuneration is not counted toward the remuneration from Porsche AG. The remuneration received by
Mr. Meschke in fiscal year 2023 from Porsche SE is presented in the remuneration report 2023 of Porsche SE.
2023
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
Short-term variable remuneration (STI) 2023
Variable remuneration
Total fixed remuneration
Annual base salary
Target amount:
(8) Personnel expertise and
remuneration
Plan type:
Lutz Meschke (*1966)
Deputy Chairman (since 2015)
Finance and IT
Beginning of membership of the Executive Board: 2009
Nationality: German, Croatian
Appointment outside the group
2 Appointment within the group
Membership on supervisory boards and other control bodies
Membership of statutory supervisory boards in Germany
CARIAD SE, Wolfsburg (Chairman)¹
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig²
Comparable appointments in Germany and abroad
European Transport Solutions S.à r.I., Luxembourg¹
FlexFactory GmbH, Munich (until November 30, 2023)¹
MHP Management und IT-Beratung GmbH, Ludwigsburg (Chairman)²
Porsche Consulting GmbH, Bietigheim-Bissingen (Chairman)²
Porsche Deutschland GmbH, Bietigheim-Bissingen²
Porsche Digital GmbH, Ludwigsburg (Chairman until October 31, 2023)²
Porsche eBike Performance GmbH, Ottobrunn (Chairman)²
Porsche Engineering Group GmbH, Weissach²
Porsche Engineering Services GmbH, Bietigheim-Bissingen²
Porsche Enterprises Inc., Atlanta²
Porsche Financial Services GmbH, Bietigheim-Bissingen (Chairman)²
Porsche Investments Management S.A., Luxemburg (Chairman) (since April 1,
2023)²
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg (Chairman)²
Porsche Werkzeugbau GmbH, Schwarzenberg (until January 16, 2023)²
P3X GmbH & Co. KG, Gilching (until December 31, 2023)²
Rimac Group d.o.o., Sveta Nedelja¹
Corporate Governance Members of the Executive Board
147
↑↓ ↑ ||
148
Members of the Executive Board
Barbara Frenkel (*1963)
Procurement
Beginning of membership of the Executive Board: 2021
Nationality: German
Andreas Haffner (*1965)
Human Resources and Social Affairs
Beginning of membership of the Executive Board: 2015
Nationality: German
Chairman of the Board of Management of Volkswagen AG
Beginning of membership of the Executive Board: 2013
Nationality: German
Sajjad Khan (*1973)
Car-IT
Dr. Oliver Blume (*1968)
Chairman (since 2015)
MEMBERS OF THE EXECUTIVE BOARD
In addition, the executive board of a listed or co-determined
company has to determine targets for the percentage of
women in management positions at the two levels directly
below the executive board. If the share of women is below 30%
when the executive board sets the target, the targets may no
longer be lower than the share already achieved. At the same
time as setting the targets, deadlines for their achievement
within five years also have to be determined.
By resolution dated November 2021, the Executive Board of
Porsche AG set itself the targets of 20% women in the first
level of management below the Executive Board and 18%
women in the second level of management below the Executive
Board. A deadline of December 31, 2025 was set for achieving
each of the targets.
REMUNERATION REPORT AND REMUNERATION
SYSTEM FOR THE EXECUTIVE BOARD AND
SUPERVISORY BOARD
The remuneration report for the last fiscal year and the auditor's
report pursuant to section 162 AktG can be found in the Annual
and Sustainability Report for fiscal year 2023, which is available
on the company's website at
> https://investorrelations.porsche.com/en/financial-figures. The
remuneration report is also available at:
When putting the Supervisory Board of Porsche AG together,
the minimum quota requirement introduced with the German
Act on the Equal Participation of Women and Men in
Management Positions in the Private Economy and the Public
Sector (FÜPOG) was observed, according to which the
supervisory board of listed and parity co-determined companies explanations about the remuneration system and the individual
must be made up of at least 30% women and at least 30% men.
This quota is fulfilled by the Supervisory Board as a whole
(overall fulfillment). A total of six women (30%) belong to the
company's Supervisory Board, three of them shareholder
representatives and three of them employee representatives. In
addition, a total of 14 men (70%) belong to the Supervisory
Board, seven of whom are shareholder representatives and
seven of whom are employee representatives. The legal
requirement to set a target for the proportion of women on the
Supervisory Board does not apply due to the validity of the
statutory minimum proportion requirement on the Supervisory
Board.
According to the German Act to Supplement and Amend the
Regulations for the Equal Participation of Women and Men in
Management Positions in the Private Economy and the Public
Sector (FÜPOG II), Porsche AG is also subject to the minimum
> https://investorrelations.porsche.com/en/corporate-governance.
Furthermore, the remuneration report contains detailed
remuneration of the members of the Executive Board and
Supervisory Board. The remuneration system for the Executive
Board can also be viewed separately at the following link:
> https://investorrelations.porsche.com/en/corporate-governance.
The remuneration system for the Executive Board and the
Supervisory Board remuneration were submitted to the
company's Annual General Meeting 2023 for approval pursuant
to section 120a (1) AktG and for resolution pursuant to section
113 (3) AktG. The Annual General Meeting passed these two
say-on-pay resolutions on June 28, 2023, each with 100% of
the votes cast. The most recent remuneration resolution in
accordance with section 113 (3) AktG is available at the
following link: https://investorrelations.porsche.com/en/general-
meeting-23/. Additional information on remuneration can be
found under → Notes to the consolidated financial statements and in the
notes to the Porsche AG financial statements for 2023.
Corporate Governance Corporate Governance Declaration
145
↑↓ ↑ |||
146
RELEVANT DISCLOSURES ON CORPORATE
GOVERNANCE PRACTICES
Compliance and Risk Management
To ensure the Porsche AG Group's lasting success, the company
uses forward-looking risk management and a uniform group-
wide framework. This includes:
Compliance: Compliance at Porsche is adherence to
statutory provisions, internal company policies and
Porsche's Code of Conduct which are publicly accessible at
the following link:
> https://www.porsche.com/germany/aboutporsche/
overview/compliance/overview/
- Whistleblower system: Adherence to statutory
requirements, internal company policies, and the Code of
Conduct has utmost priority at Porsche. In order to counter
potential risks of compliance breaches at an early stage, the
company set up a whistleblower system, where any
violations against the rules by employees of the Porsche
group can be reported. Incoming reports are treated
independently and confidentially in Porsche's whistleblower
system.
Business and human rights: Porsche is committed to
respecting human rights, and in particular promoting good
working conditions and fair trade. The company has
formulated clear rules about this-both in terms of its own
operating activities and its global supply chains. Porsche
bases its entrepreneurial actions on the ten principles of the
UN Global Compact and the United Nations Guiding
Principles on Business and Human Rights. The contents of
these, which draw largely from the Universal Declaration of
Human Rights and the ILO (International Labor Organization)
Declaration on Fundamental Principles and Rights at Work,
can be found on the respective websites of the United
Nations and the ILO.
Risk management and internal control system: Promptly
identifying the risks and opportunities arising from operating
activities and taking a forward-looking approach to
managing them is crucial to the long-term success of the
Porsche AG Group. The responsible management of
business risks to achieve our objectives is just as important
as the timely identification of opportunities to ensure
competitiveness. For this purpose, the Porsche AG Group
has management and control systems in place that are
embedded in a comprehensive risk and opportunities
management system. The Porsche AG Group has
implemented a comprehensive risk management system
(RMS) and internal control system (ICS). The aim is to
identify potential risks at an early stage and manage them
using suitable measures or controls. In this way, the threat
of loss to the company should be averted and any risks that
might jeopardize its continued existence recognized in good
time.
Voluntary Commitments and Principles
The Porsche AG Group has made a commitment to sustainable,
transparent, and responsible corporate governance.
The company coordinates its sustainability activities across the
entire group and has put in place a forward-looking risk
management system and a clear framework for dealing with
environmental issues, for employee responsibility and for social
commitment in a future-oriented manner. Voluntary
commitments and principles that apply across the group are
the basis and backbone of our sustainability management.
These documents are publicly accessible in the Porsche
Newsroom in the "Sustainability" section at the following link:
> https://www.newsroom.porsche.com/en/nachhaltigkeit.html.
Members of the Executive Board
participation requirement of section 76 (3a) AktG, under which
the members of the executive board of the company must
include at least one woman and at least one man. When putting
the Executive Board of Porsche AG together, this was observed.
Ms. Barbara Frenkel has already been a member of the
company's Executive Board since June 2021. The statutory
requirement to set a target for the proportion of women on the
executive board does not apply due to the legal validity of the
participation requirement.
Beginning of membership of the Executive Board: 2023
Nationality: German
Sales and Marketing
Virtual performance share plan
Volkswagen Osnabrück GmbH, Osnabrück¹
Membership of statutory supervisory boards in Germany
CARIAD SE, Wolfsburg¹
Comparable appointments in Germany and abroad
Cellforce Group GmbH, Tübingen (Chairman)²
Group 14 Technologies, Inc., Woodinville¹
HIF Global LLC, Delaware¹
Porsche Digital GmbH, Ludwigsburg²
Porsche Engineering Group GmbH, Weissach (Chairman)²
Porsche Engineering Services GmbH, Bietigheim-Bissingen (Chairman)²
Porsche E-Bike Performance GmbH, Ottobrunn²
MEMBERS OF THE SUPERVISORY BOARD AND
COMPOSITION OF THE COMMITTEES
Members of the Supervisory Board
Dr. Wolfgang Porsche (*1943)
Chairman
Business administration graduate
Member since: 2009
Nationality: Austrian
Jordana Vogiatzi (*1976)
Deputy Chairwoman
Managing Director of Members and Finance of IG Metall
Stuttgart
Member since: 2014
Nationality: German, Greek
Dr. Arno Antlitz (*1970)
Member of the Board of Management of Volkswagen AG
for Finance and Operations
Member since: 2021
Nationality: German
Porsche Werkzeugbau GmbH, Schwarzenberg (Chairman)²
Porsche Logistik GmbH, Stuttgart (Chairman)²
Detlev von Platen (*1964)
KS HUAYU AluTech GmbH, Neckarsulm¹
Comparable appointments in Germany and abroad
Beginning of membership of the Executive Board: 2015
Nationality: German, French, USA
Albrecht Reimold (*1961)
Production and Logistics
Beginning of membership of the Executive Board: 2016
Nationality: German
Dr. Michael Steiner (*1964)
Research and Development
Beginning of membership of the Executive Board: 2016
Nationality: German
Appointment outside the group
2 Appointment within the group
Membership on supervisory boards and other control bodies
Comparable appointments in Germany and abroad
Porsche Deutschland GmbH, Bietigheim-Bissingen²
Stiftung Münchner Sicherheitskonferenz GmbH, Munich (since June 26,
2023)¹
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig²
Comparable appointments in Germany and abroad
Porsche Dienstleistungs GmbH, Stuttgart (Chairman)²
Porsche Werkzeugbau GmbH, Schwarzenberg²
Porsche Consulting GmbH, Bietigheim-Bissingen²
MHP Management und IT-Beratung GmbH, Ludwigsburg²
Comparable appointments in Germany and abroad
Porsche Digital GmbH, Ludwigsburg (Chairman) (since November 1, 2023)²
Porsche Engineering Group GmbH, Weissach (since November 1, 2023)²
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig²
Comparable appointments in Germany and abroad
Porsche Deutschland GmbH, Bietigheim-Bissingen (Chairman)²
Porsche Digital GmbH, Ludwigsburg²
Porsche Enterprises Inc., Atlanta²
Porsche Financial Services GmbH Bietigheim-Bissingen²
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg?
Porsche Logistik GmbH, Stuttgart²
P3X GmbH & Co. KG, Gilching (Chairman) (until December 31, 2023)²
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig (Chairman)²
FlexFactory GmbH, Munich (until November 30, 2023)1
1
LEGISLATION ON THE EQUAL PARTICIPATION OF
WOMEN AND MEN IN MANAGEMENT POSITIONS
The Supervisory Board performed a self-assessment in fiscal
year 2023. For the self-assessment, a questionnaire was first
distributed for the Supervisory Board members to give their
evaluation and suggest possible improvements. However, in
order to identify further potential for optimization-in the sense
of a continuous improvement process-the Supervisory Board
resolved to conduct individual interviews in addition to a
traditional assessment using a questionnaire. From the
Supervisory Board's perspective, this approach offers the
opportunity to discuss individual issues in detail, set individual
priorities and thus ensure a comprehensive exchange of
information. The interviews were held at the beginning of 2024.
External support was obtained for part of the process,
specifically the preparation of the self-assessment and
upstream training.
The duties generally transferred to the respective committees
by the Supervisory Board are described below. This does not
rule out the possibility that the Supervisory Board may-if
legally permissible-transfer additional duties to the
committees on a case-by-case basis.
The Executive Committee coordinates the work in the
Supervisory Board and, at its meetings, diligently prepares the
resolutions of the Supervisory Board, discusses the composition
of the Executive Board, and takes decisions on matters such as
contractual issues concerning the Executive Board other than
remuneration and consent to ancillary activities by members of
the Executive Board. The Executive Committee supports and
advises the Chairman of the Supervisory Board. It works with
the Chairman of the Executive Board to ensure long-term
succession planning for the Executive Board, taking diversity
into account. For this purpose, the Executive Committee and
the Chairman of the Supervisory Board have prepared a
succession matrix.
The Nomination Committee proposes suitable candidates for
the Supervisory Board to recommend to the Annual General
Corporate Governance Corporate Governance Declaration
141
↑↓ ↑ 0 |||
142
Meeting for election. It develops and regularly reviews the
requirement profiles for the shareholder representatives on the
Supervisory Board and observes suitable personalities.
Together with the Chairman of the Supervisory Board, it is
primarily involved in developing a profile of requirements for at
least two shareholder representatives that should be
independent of a controlling shareholder.
The Mediation Committee has the task of submitting proposals
to the Supervisory Board for an appointment or revocation of
appointment of Executive Board members if in a first vote the
Supervisory Board fails to reach a majority for the
measure concerned.
Among other things, the Audit Committee discusses the
auditing of accounting, including the annual and consolidated
financial statements, as well as monitoring of the financial
reporting process and the audit. It also discusses compliance,
the effectiveness of the risk management system, internal
control system, and internal audit system. In addition, the Audit
Committee discusses interim financial information with the
Executive Board.
A more detailed description of the duties and responsibilities of
the individual committees can be found in the Rules of
Procedure for the Supervisory Board, which are available on the
company's website at
>https://investorrelations.porsche.com/en/corporate-governance.
Concrete Objectives for the Composition of the
Supervisory Board, Diversity Concept, and Skill Set
for the Full Board
In view of the company's specific situation, its purpose, its size,
and the extent of its international activities, the Supervisory
Board of Porsche AG strives to achieve a composition that takes
the company's ownership structure and the following aspects
into account:
General requirements:
- Each member of the Supervisory Board must meet the
requirements provided by law and the Articles of Association
for membership in the Supervisory Board (see in particular
sections 100 (1) to (4), 105 AktG).
- At least one member of the Supervisory Board must have
specialist knowledge in the area of accounting and at least
one other member of the Supervisory Board must have
specialist knowledge in the area of auditing; the members as
a whole must be familiar with the sector in which the
company operates (section 100 (5) AktG).
The Supervisory Board must be made up of at least 30%
women and at least 30% men. The minimum participation of
the genders must be fulfilled by the Supervisory Board as a
whole. If, prior to the election, the side of the shareholder
representatives or the side of the employee representatives
raises an objection with the Chairman of the Supervisory
Board, based on a resolution adopted by a majority, against
the fulfillment of the minimum participation of the genders
by the Supervisory Board as a whole, the minimum
participation of the genders for that election will have to be
fulfilled separately by the side of the shareholder
representatives and by the side of the employee
representatives (section 96 (2) sentences 1 to 3 AktG).
The Supervisory Board has set the following concrete
objectives for its composition:
- Each member of the Supervisory Board must be reliable and
have the knowledge and skills required to properly perform
the duties assigned to them.
At least two shareholder representatives should, in the
opinion of the shareholder representatives, be considered
independent of the company and its Executive Board and
independent of a controlling shareholder within the meaning
of recommendation C.6 of the Code.
No more than two former members of the Executive Board
should be members of the Supervisory Board.
Supervisory Board members should not hold board or
advisory positions at major competitors of the company and
should not be in a personal relationship involving a major
competitor.
All members of the Supervisory Board must ensure that they
have sufficient time available to discharge their duties.
- The diversity concept described below should.
be implemented.
With regard to its composition, the Supervisory Board strives
for sufficient diversity in terms of personality, internationality,
professional background, skills, and experience as well as age
and takes the following diversity criteria into account for
its composition:
More information about the members, their relevant experience
and expertise and the composition of the Supervisory Board
and the Supervisory Board committees can be found under the
headings "Our Supervisory Board" and "Committees of the
Supervisory Board of Porsche AG" on the company's website at
> https://investorrelations.porsche.com/en/corporate-governance.
- At least two members of the Supervisory Board should have
international experience, either because of their origin or an
educational or professional activity abroad over several
years.
representatives. The Chairman of the Executive Committee is
Dr. Wolfgang Porsche. The Nomination Committee is made up
of the Chairman of the Supervisory Board and two additional
shareholder representatives. The Mediation Committee
comprises the Chairman of the Supervisory Board, the Deputy
Chairman as well as one member each to be elected by the
Supervisory Board members representing the employees and by
the Supervisory Board members representing the shareholders.
The Supervisory Board set up the Related Party Committee in
order to deal with related party transactions. This committee is
made up of three shareholder representatives and two
employee representatives. The Audit Committee comprises six
members: three from the ranks of shareholders and three from
the ranks of employees.
In order to discharge the duties entrusted to it, the Supervisory
Board has currently established five committees: the Executive
Committee, the Nomination Committee, the Mediation
Committee established in accordance with section 27 (3)
MitbestG, a Related Party Committee and the Audit Committee.
140
through regular discussions between the Chairman of the
Executive Board and the Chairman of the Supervisory Board as
well as regular discussions in the Executive Committee. The
contract terms for existing Executive Board members are
discussed, along with potential extensions and potential
successors. In particular, the discussions look at what
knowledge, experience, and professional and personal
competencies should be represented on the Executive Board
with regard to the corporate strategy and current challenges,
and to what extent the current composition of the Executive
Board already reflects this. Long-term succession planning is
based on the corporate strategy and corporate culture and
takes into account the diversity concept determined by the
Supervisory Board. As a rule, members of the Executive Board
should be appointed for a term of office ending no later than
their 65th birthday; the Supervisory Board can vote to deviate
from this in justified cases.
SUPERVISORY BOARD
The Supervisory Board fulfills the tasks imposed on it in
accordance with the requirements stipulated by law, the
Articles of Association, and the Rules of Procedure for the
Supervisory Board. It works on the basis of the
recommendations and suggestions of the Code. It advises and
monitors the Executive Board with regard to the management
of the company and, through the requirement for the
Supervisory Board to provide consent, is directly involved in
decisions of fundamental importance to the company.
Information on the composition of the Supervisory Board and
the Supervisory Board committees and their chairmen as well
as on the terms of office of the individual Supervisory Board
members can be found under the headings "Our Supervisory
Board" and "Committees of the Supervisory Board of
Porsche AG" on the company's website at
> https://investorrelations.porsche.com/en/corporate-governance. Further
information on the work of the Supervisory Board can be found
in the Report of the Supervisory Board in the → To our shareholders
chapter of the Annual and Sustainability Report 2023, which is
available on the company's website at
> https://investorrelations.porsche.com/en/financial-figures.
Overview
The Supervisory Board of Porsche AG consists of 20 members,
half of whom are shareholder representatives elected by the
Annual General Meeting. The other half of the Supervisory
Board consists of employee representatives elected by the
employees in accordance with the German Co-Determination
Act (MitbestG). A total of seven of these employee
representatives are company employees elected by the
workforce; the other three employee representatives are trade
union representatives elected by the workforce.
The Chairman of the Supervisory Board is generally a
shareholder representative, and the Deputy Chairman is
generally an employee representative. Both are elected by the
other members of the Supervisory Board.
A dedicated office of the Supervisory Board Chairman is
equipped with corresponding personnel resources in order to
help the Chairman of the Supervisory Board perform his duties
and to manage the business of the Supervisory Board.
The Supervisory Board appoints the Executive Board members
and, on the basis of the Executive Committee's
recommendations, decides on a clear and comprehensible
system of remuneration for the Executive Board members. It
presents this system to the Annual General Meeting as a
resolution for approval every time there is a material change,
but at least once every four years.
Each member of the Supervisory Board is obliged to act in the
company's best interests and discloses any conflicts of interest
to the Chairman of the Supervisory Board without delay. In its
report to the Annual General Meeting, the Supervisory Board
informs the Annual General Meeting of any conflicts of interest
among Supervisory Board members that have arisen and how
these were dealt with.
Supervisory Board members should not hold board or advisory
positions at major competitors of the company and should not
be in a personal relationship involving a major competitor.
Members of the Supervisory Board receive appropriate support
from the company upon induction as well as with respect to
education and training. Education and training measures are
outlined in the Report of the Supervisory Board.
Working Procedures of the Supervisory Board
As a rule, the Supervisory Board adopts its resolutions in (in-
person) meetings. It must hold at least two meetings in both
the first and second halves of the calendar year. The number of
meetings held in fiscal year 2023 and their main topics can be
found in the Report of the Supervisory Board at
> https://investorrelations.porsche.com/en/corporate-governance.
The Chairman of the Supervisory Board coordinates the work
within the Supervisory Board and presides over the Supervisory
Board meetings. He represents the Supervisory Board externally
and in dealings with the Executive Board. The Executive Board
generally attends the Supervisory Board meetings, unless the
Supervisory Board has resolved otherwise in a specific case.
The Supervisory Board also meets regularly without the
Executive Board. In the event the auditor is called as an expert
to the meeting, the Executive Board does not participate in the
meeting for the duration of the auditor's presence unless the
Supervisory Board deems their participation to be necessary.
The Chairman of the Supervisory Board convenes and presides
over the Supervisory Board meetings. If he is unable to do so,
the Deputy Chairman performs these tasks.
The Supervisory Board is quorate if all members of the
Supervisory Board have been duly invited and at least half of its
total members of which it has to be composed participate in the
adoption of the resolution. The Chairman determines the order
of the agenda items and the voting procedure. Resolutions may
also be passed outside of meetings in writing or using
electronic media (that is, by fax, email or another standard form
of telecommunications as well as any combination of these),
provided that the Chairman announces this within a reasonable
period of time and no Supervisory Board member objects to this
procedure within that reasonable period of time. Absent
Supervisory Board members or those not participating in the
conference call or those participating remotely may also
participate in the resolution of the Supervisory Board by
submitting their vote in writing through another Supervisory
Board member. They may also submit their vote orally, by
telephone, in writing, or by electronic media prior to the
meeting, during the meeting, or-at the discretion of the
Chairman-within a reasonable period after the meeting to be
determined by the Chairman of the Supervisory Board.
Supervisory Board resolutions are adopted by a simple majority
of votes cast, unless otherwise provided by law. If a vote results
in a tie, the Chairman of the Supervisory Board has the casting
vote pursuant to section 29 (2) and section 31 (4) MitbestG;
any member of the Supervisory Board can demand that the vote
be repeated in accordance with these provisions. However, the
casting vote is never granted to the Deputy Chairman of the
Supervisory Board. The Supervisory Board meetings as well as
the resolutions adopted in these meetings must be recorded in
minutes which must be signed by the Chairman. The minutes
must state the place and date of the meeting, the participants,
the items on the agenda, the essential contents of the
discussions, and the resolutions of the Supervisory Board.
Resolutions made outside of meetings must be recorded in the
minutes by the Chairman in writing and sent to all members of
the Supervisory Board without delay.
Supervisory Board Committees
The Supervisory Board can form committees from among its
members and, to the extent legally permissible, also delegate
decision-making powers to these committees. Each committee
established by the Supervisory Board must include at least one
shareholder representative of Porsche Automobil Holding SE.
Committees adopting resolutions are only quorate if half of the
members-however, at least three members and all four
members in the Mediation Committee-participate in the
adoption of the resolution. Otherwise, the provisions of the
Articles of Association and the Rules of Procedure for the
Supervisory Board as a whole apply mutatis mutandis for the
convening, meetings and the adoption of resolutions by the
committees. The committee chairmen regularly report on the
discussions and resolutions of their respective committees to
the Supervisory Board.
The Executive Committee is currently made up of three
shareholder representatives and three employee
Following a comprehensive analysis of the feedback from
questionnaires and interviews, the Supervisory Board discussed
the results and suggestions for optimization options at the next
regular meeting of the full Board. The analysis for the fiscal year
2023 shows a high level of satisfaction among Supervisory
Board members, particularly with the organization and conduct
of the meetings. Cooperation within the Supervisory Board and
with the Executive Board is perceived as trusting and
constructive. The composition of the Supervisory Board and the
committees is deemed to be effective and efficient. The results
also show an adequate supply of information. Measures derived
from the results to optimize the Supervisory Board's work will
be adopted in a timely manner.
A range of age groups should be represented on the
Supervisory Board. At least twelve members of the
Supervisory Board should have not reached their 65th
birthday at the time of their election.
In addition, the Supervisory Board has decided on the following
skill set for the full Board. The Supervisory Board as a whole
must collectively have the knowledge, skills, and professional
expertise required to properly perform its supervisory function
and assess and monitor the business conducted by the
company. For this, the members of the Supervisory Board must
collectively be familiar with the sector in which the company
operates. The key skills and requirements of the Supervisory
Board as a whole include, in particular:
Knut Lofski
Vera Schalwig
Stefan Schaumburg
Carsten Schumacher
Wolfgang von Dühren
Ibrahim Aslan
The qualification matrix is based on the Supervisory Board's own assessment. "Excellent knowledge" resulting from qualifications, knowledge, experience, or advanced
training is designated as such. The categories in the left column of the qualification matrix summarize the key skills, expertise, and requirements that are enumerated
individually in the profile of skills shown above and below for the entire Supervisory Board.
Corporate Governance Corporate Governance Declaration
143
↑ ↓ ↑ 0 |||
144
(8) Knowledge of and skills and professional experience in
the area of human resources (particularly the search for
and selection of members of the Executive Board, and
the succession process) and knowledge of incentive and
remuneration systems for the Executive Board.
(9) Knowledge of and skills and professional experience in
the areas of co-determination, employee matters, and
the working environment in the company.
(10) Knowledge of and skills and professional experience in
the areas of the environment, society, and sustainable
corporate governance including the risks descendant
from these areas (Environmental, Social, Governance:
ESG), in particular, expertise in the sustainability
questions that are particularly relevant to the company,
for example with regard to resources, supply chains,
energy supply, corporate social responsibility,
sustainable technologies, and related business models.
(11) Knowledge of and skills and professional experience in
the area of digital transformation.
(12) Knowledge of and skills and professional experience in
the luxury goods industry.
The qualifications of the Supervisory Board members are
captured and regularly reviewed in a self-assessment, which
shows that the key skills and requirements are fulfilled by the
Board as a whole.
The members of the Audit Committee, in particular its
Chairman, Dr. Christian Dahlheim, as well as Ms. Micaela Le
Divelec Lemmi and Dr. Ferdinand Oliver Porsche, each have
specialist knowledge both in the field of accounting, including
sustainability reporting, and in the field of auditing, including
the audit of sustainability reporting.
The Chairman of the Audit Committee, Dr. Christian Dahlheim,
has special knowledge and experience in the application of
accounting principles and internal control and risk management
systems as well as in the auditing of financial statements due to
his many years working in various management and board
positions, including at Volkswagen Financial Services AG, and
his work on the supervisory boards of various banks.
Ms. Micaela Le Divelec Lemmi worked for an audit firm for
several years during the course of her professional career. In
addition to various management functions in the financial
sector, Ms. Micaela Le Divelec Lemmi has also held various
management positions, including Chief Financial Officer at
Gucci and CEO of the Salvatore Ferragamo Group. She therefore
has special knowledge and experience in the application of
accounting principles and internal control and risk management
systems as well as in the auditing of financial statements.
Dr. Ferdinand Oliver Porsche has been a member of the audit
committees of various listed companies for many years and
worked for an audit firm for several years. As part of his work on
audit committees, he was also involved in the audit of non-
financial statements relating to sustainability in the form of
material environmental and social issues. Dr. Ferdinand Oliver
Porsche also follows and supports current developments in the
field of sustainability reporting and contributes his expertise to
Porsche AG's Audit Committee.
More information about the members, their relevant experience
and expertise can be found in the Report of the Supervisory
Board and under the heading → Our Supervisory Board on the
company's website at
> https://investorrelations.porsche.com/en/corporate-governance.
Numerous members of the Supervisory Board also embody the
criterion of internationality to a particularly high degree; various
nationalities are represented on the Supervisory Board and
numerous members have international professional experience.
Several members of the Supervisory Board contribute to the
Board's diversity to a particularly high degree, especially
Ms. Micaela Le Divelec Lemmi, Ms. Melissa Di Donato Roos, and
Ms. Jordana Vogiatzi. The Supervisory Board also comprises
members of various age groups.
The shareholder representatives on the Supervisory Board are
of the opinion that four shareholder representatives are
currently independent within the meaning of recommendation
C.6 of the Code. These are Ms. Micaela Le Divelec Lemmi,
Ms. Melissa Di Donato Roos, Dr. Christian Dahlheim, and
Dr. Hans Peter Schützinger.
Members of the Supervisory Board Dr. Hans Michel Piëch,
Dr. Ferdinand Oliver Porsche, Dr. Wolfgang Porsche, and Hans
Dieter Pötsch have all belonged to the Supervisory Board for
more than twelve years and thus fulfill one of the indicators set
out in recommendation C.7 of the Code for lack of
independence from the company and the Executive Board.
Taking all the circumstances of the specific case into account,
the shareholder side still considers these members of the
Supervisory Board to be independent of the company and the
Executive Board. The work of the Supervisory Board and its
committees shows that Dr. Hans Michel Piëch, Dr. Ferdinand
Oliver Porsche, Dr. Wolfgang Porsche, and Mr. Hans Dieter
Pötsch continue to unreservedly possess the required critical
distance from the company and its Executive Board to allow
them to appropriately monitor and assist the Executive Board in
managing the company.
Self-Assessment of the Supervisory Board
The Supervisory Board regularly assesses how effectively the
Board and its committees are performing their tasks (self-
assessment). In addition to the quality criteria to be determined
by the Supervisory Board, the subject of the self-assessment
mainly covers the procedures in the Supervisory Board and the
flow of information between the committees and the plenum as
well as the timely provision of sufficient information to the
Supervisory Board.
Nora Leser
The members of the Supervisory Board should complement
each other in terms of their cultural origin, professional
experience, and skills, so that the Supervisory Board can
draw upon as broad a range of different experiences and
specialist skills as possible.
Akan Isik
Jordana Vogiatzi
(1) Knowledge of and skills and professional experience in
the manufacture and sale of all types of vehicles and
engines or other technical products.
(2) Knowledge of and skills and professional experience in
the automotive industry and its transformation-
especially with view to the topics of electromobility and
mobility services-the business model and the market,
as well as product expertise.
of
(3) Knowledge of and skills and professional experience in
the field of research and development, particularly
technologies with relevance for the company.
Skills and Expertise Supervisory Board
(1) Manufacture and sale
(2) Automotive sector and
transformation
(3) Research and development
(4) Management/supervision
experience
(5) Governance/legal/compliance
(6) Finance, accounting/auditing
(7) Capital market, controlling, and
risk management
(9) Co-determination
(10) Sustainability
(11) Digital
(12) Luxury goods sector
(4) Knowledge of and skills and professional experience in
leadership positions and supervisory bodies of
companies, including holding companies and start-ups,
or large organizations.
(5) Knowledge of and skills and professional experience in
the areas of governance, law, or compliance.
(6) Knowledge of and skills and professional experience in
the areas of finance, accounting, and auditing, primarily
knowledge of and experience in the application of
accounting principles and internal control and risk
management systems and in sustainability reporting as
well as the audit and review of sustainability reporting
(financial experts).
(7) Knowledge of and skills and professional experience in
the capital markets as well as knowledge of and skills
and professional experience in the areas of controlling,
risk management, and internal control system.
Dr. Wolfgang Porsche
Dr. Arno Antlitz
Dr. Christian Dahlheim
Melissa Di Donato Roos
Micaela le Divelec Lemmi
Dr. Hans Michel Piëch
Dr. Ferdinand Oliver Porsche
Hans Dieter Pötsch
Dr. Hans Peter Schützinger
Hauke Stars
Harald Buck
Ibrahim Aslan (*1973)
Smart Press Shop GmbH & Co. KG, Halle¹
Sachsenheim; head of representatives body
Kühne + Nagel International AG, Schindellegi¹.3
COMMITTEES OF THE SUPERVISORY BOARD OF
PORSCHE AG AS OF DECEMBER 31, 2023
Members of the Executive Committee
Dr. Wolfgang Porsche (Chairman)
Dr. Arno Antlitz
Hauke Stars
Jordana Vogiatzi
Harald Buck
Carsten Schumacher
Members of the Audit Committee
Dr. Christian Dahlheim (Chairman)
Micaela le Divelec Lemmi
Dr. Ferdinand Oliver Porsche
Carsten Schumacher
Nora Leser
Harald Buck
Members of the Mediation Committee pursuant to section 27
(3) of the German Co-Determination Act (MitbestG)
Dr. Wolfgang Porsche (Chairman)
Hauke Stars
Jordana Vogiatzi
Harald Buck
Members of the Nomination Committee
Dr. Wolfgang Porsche (Chairman)
Dr. Arno Antlitz
Hauke Stars
Members of the Related Party Committee
Comparable appointments in Germany and abroad
Dr. Hans Michel Piëch
PowerCo SE, Salzgitter¹
CARIAD SE, Wolfsburg'
↑↓ ↑ 0 |||
152
Members of the Supervisory Board
Carsten Schumacher (*1987)
Chairman of the works council Weissach
Member of Porsche general and group works council
Member since: 2019
Nationality: German
Dr. Hans Peter Schützinger (*1960)
Spokesperson for the management of
Porsche Holding GmbH
Member since: 2016
Nationality: Austrian
Membership on supervisory boards and other control bodies
Membership of statutory supervisory boards in Germany
CARIAD SE, Wolfsburg¹
REMUNERATION REPORT 2023
Hauke Stars (*1967)
Member of the Board of Management of Volkswagen AG
for IT
Member since: 2022
Nationality: German
1 Appointment outside the group
2 Appointment within the group
3
Listed company
Membership of statutory supervisory boards in Germany
Volkswagen Financial Services AG, Braunschweig¹
Comparable appointments in Germany and abroad
Porsche Hungaria Kereskedelmi Kft., Budapest¹
Volkswagen Financné služby Slovensko s.r.o., Bratislava1
Porsche Versicherungs AG, Salzburg¹
Porsche Bank AG, Salzburg¹
Din Bil Sverige AB, Stockholm¹
Gletscherbahnen Kaprun AG, Kaprun¹
Schmittenhöhebahn AG, Zell am See¹
Membership of statutory supervisory boards in Germany
Member of the works council Zuffenhausen/Ludwigsburg/
RWE AG. Essen 1.3
151
Micaela le Divelec Lemmi
Wolfgang von Dühren
-Preventive medical check-ups
- Insurance (accident, travel luggage, D&O insurance)
- Security
The basic remuneration and fringe
benefits are intended to reflect the
tasks and responsibility of the
Executive Board members, provide a
basic income, and prevent them from
taking inappropriate risks.
- Defined contribution plans with an annual contribution of 40% The occupational retirement provision
of the annual base salary
- Usually paid out when the members reach the age of 67
is intended to provide Executive Board
members with an adequate pension
when they retire.
Target amount
Annual bonus/short-term
incentive (STI)
Plan type:
for 2023:
Cap:
Performance
criteria:
Assessment
period:
Payment:
Target bonus
Chairman of the Executive Board¹: €800,000;
Deputy Chairman of the Executive Board:
€950,000; Executive Board member: €800,000
180% of the target amount, i.e.:
Chairman of the Executive Board: €1,440,000;
Deputy Chairman of the Executive Board:
€1,710,000; Executive Board member:
€1,440,000
Return on investment (ROI) of the Porsche
AG Group, Automotive Division (50%)
-Operating return on sales (ROS) of the
Porsche AG Group (50%)
ESG targets (multiplier 0.63-1.43)
Fiscal year in question
In cash in the month following approval of
the consolidated financial statements of
Porsche AG for the fiscal year in question
Pro rata reduction if the service contract
starts or ends during the year
1 Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
The annual bonus is designed to
motivate Executive Board members to
pursue ambitious targets. The financial
performance targets are intended to
support the strategic target of
achieving competitive profitability.
Remuneration component
Long-term incentive (LTI)
Measurement base/parameters
-Allowance for health and long-term care insurance
Hauke Stars
-Benefit in kind subject to lump-sum taxation
Fringe benefits, including:
Akan Isik
The Executive Board and Supervisory Board of Dr. Ing. h.c. F.
Porsche AG (Porsche AG) are required to prepare a clear and
comprehensible remuneration report in accordance with
section 162 of the German Stock Corporation Act (AktG). In
this report, the Executive Board and Supervisory Board explain
the main features of the remuneration system for the members
of the Executive Board and Supervisory Board. The
remuneration report also contains an individualized breakdown
of the remuneration components provided to current and
former members of the Executive Board and Supervisory Board.
The Executive Board and Supervisory Board of Porsche AG have
previously prepared a remuneration report in accordance with
section 162 AktG for fiscal year 2022. The Annual General
Meeting approved the remuneration report 2022 on June 28,
2023 with 100% of the votes cast.
A. REMUNERATION OF THE MEMBERS OF THE
EXECUTIVE BOARD
Fiscal year 2023 was a challenging year for Porsche AG in many
respects. Despite changed conditions, a large number of
political and economic crises and the ongoing transformation,
Porsche AG successfully closed 2023, increasing the operating
result of the Porsche AG Group by €512 million to €7,284
million. Executive Board remuneration also benefited from this
positive development.
I. Principles of Executive Board remuneration
The Supervisory Board adopted a remuneration system for the
Executive Board (the Executive Board remuneration system) on
September 14, 2022 with effect from January 1, 2023. This
Executive Board remuneration system implements the
requirements of AktG as amended by ARUG II and takes into
account the recommendations of the German Corporate
Governance Code (the Code) in the version dated April 28,
2022 (which entered into force on June 27, 2022). The Annual
General Meeting approved the Executive Board remuneration
system in a say-on-pay vote on June 28, 2023 with 100% of
the votes cast.
Since January 1, 2023, the remuneration of the Executive
Board has complied fully with the requirements of the
Executive Board remuneration system. Porsche AG was
assisted by independent remuneration and legal consultants
during the development of the Executive Board remuneration
system. The level of the Executive Board remuneration should
be appropriate and attractive in the context of the company's
national and international peer group. Criteria include the tasks
of the individual Executive Board member, the economic
situation, and the performance of and outlook for the company,
as well as how customary the remuneration is when measured
against the peer group. In this context, comparative studies on
remuneration are conducted on a regular basis.
Porsche AG already had a remuneration system for the
members of the Executive Board prior to the IPO (the former
Executive Board remuneration system). The Supervisory Board
decided to settle the remuneration of the Executive Board in
accordance with the contractual arrangements applicable under
the former Executive Board remuneration system for a
transitional period up until December 31, 2022. The
remuneration granted and owed as presented in this
remuneration report therefore also includes remuneration
components under the former Executive Board remuneration
system, such as the long-term incentive (LTI) for 2020-2022,
the 2022 guaranteed amount and the first tranche of the IPO
bonus. The former Executive Board remuneration system
permissibly did not correspond to all of the current statutory
and regulatory requirements for listed stock corporations.
This chapter first provides an overview of the Executive Board
remuneration system before going into the components of the
remuneration in fiscal year 2023.
II. Overview of the remuneration components of the
former Executive Board remuneration system
The table below provides an overview of the components of the
Executive Board remuneration system applicable for fiscal year
2023. The table also outlines the composition of the individual
remuneration components and explains their targets and how
the remuneration will promote Porsche AG's long-term
performance. More information on the specific remuneration
components can also be found in section A.III.
Corporate Governance Remuneration report 2023
153
↑↓ ↑ ||
154
Remuneration component
Measurement base/parameters
Target
Fixed remuneration
components
Base salary
Fringe benefits
Occupational retirement
provision
Variable remuneration
components
- Twelve equal installments payable at month end
2023: Chairman of the Executive Board¹: €800,000; Deputy
Chairman of the Executive Board: €950,000; Executive Board
member: €800,000
A vehicle with a fuel/charging card, also for private use;
Porsche AG pays the tax due on the benefit in kind
-Right to two leased vehicles
Corporate Governance Members of the Supervisory Board and composition of the committees
AUDI AG, Ingolstadt¹
3 Listed company
Chairman of the Board of Volkswagen Financial
Membership of statutory supervisory boards in Germany
Jenoptik AG, Jena (until December 31, 2023) 1,3
Member since: 2020
Nationality: German
Membership on supervisory boards and other control bodies
Comparable appointments in Germany and abroad
Volkswagen AG, Wolfsburg 1,3
Membership of statutory supervisory boards in Germany
Volkswagen Bank GmbH, Braunschweig¹
Members of the Supervisory Board
Dr. Hans Michel Piëch (*1942)
Attorney at law
Member since: 2009
Nationality: Austrian
Dr. Ferdinand Oliver Porsche (*1961)
Member of the Board of Management of Familie
Porsche AG Beteiligungsgesellschaft
Member since: 2010
Nationality: Austrian
Hans Dieter Pötsch (*1951)
Chairman of the Board of Management of
Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Member since: 2010
Nationality: Austrian
Membership on supervisory boards and other control bodies
Membership of statutory supervisory boards in Germany
AUDI AG, Ingolstadt¹
Volkswagen AG, Wolfsburg 1,3
Porsche Automobil Holding SE, Stuttgart (Deputy Chairman) 1.3
Comparable appointments in Germany and abroad
Porsche Holding Gesellschaft m.b.H., Salzburg¹
Schmittenhöhebahn AG, Zell am See¹
Membership of statutory supervisory boards in Germany
Dr. Christian Dahlheim (*1968)
Porsche Automobil Holding SE, Stuttgart 1,3
Nationality: German
Sachsenheim
Member since: 2022
Nationality: German
Appointment outside the group
2 Appointment within the group
3 Listed company
Membership on supervisory boards and other control bodies
Membership of statutory supervisory boards in Germany
Porsche Automobil Holding SE, Stuttgart (Chairman) 1,3
Volkswagen AG, Wolfsburg 1,3
AUDI AG, Ingolstadt¹
Comparable appointments in Germany and abroad
Porsche Holding Gesellschaft m.b.H., Salzburg¹
Familie Porsche AG Beteiligungsgesellschaft, Salzburg (Chairman)¹
Schmittenhöhebahn AG, Zell am See¹
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig (since February 13, 2023)²
Membership of statutory supervisory boards in Germany
Volkswagen Financial Services AG, Braunschweig (Chairman)1
Volkswagen Financial Services Europe AG, Braunschweig (Chairman)1
PowerCo SE, Salzgitter¹
Comparable appointments in Germany and abroad
Volkswagen Group of America, Inc., Herndon (Chairman)¹
Volkswagen (China) Investment Co., Ltd., Beijing'
Porsche Austria Gesellschaft m.b.H., Salzburg (Deputy Chairman)¹
Porsche Holding Gesellschaft m.b.H., Salzburg (Deputy Chairman)1
Porsche Retail Gesellschaft m.b.H., Salzburg (Deputy Chairman)¹
Corporate Governance Members of the Supervisory Board and composition of the committees
149
↑↓ ↑ ||
150
Comparable appointments in Germany and abroad
Porsche Bank AG, Salzburg¹
Volkswagen Finance (China) Co., Ltd., Beijing'
Members of the Supervisory Board
Harald Buck (*1962)
Chairman of the works council
Zuffenhausen/Ludwigsburg/
Chairman of Porsche general and group works council
Member since: 2019
AUDI AG, Ingolstadt¹
Services AG
Comparable appointments in Germany and abroad
Nationality: German
Appointment outside the group
2 Appointment within the group
3 Listed company
VW New Mobility Services Investment Co., Ltd., Shanghai¹
VDF Faktoring A.S., Istanbul (Chairman)1
VDF Filo Kiralama A.S., Istanbul (Chairman)1
VDF Sigorta Aracilik Hizmetleri A.S., Istanbul (Chairman)¹
VDF Servis ve Ticaret A.S., Istanbul (Chairman)]
Volkswagen Dogus Finansman A.S., Istanbul (Chairman)¹
Volkswagen Semler Finans Danmark A/S, Brøndby (Chairman)1
Volkswagen Participações Ltda., São Paulo (Chairman)¹
Comparable appointments in Germany and abroad
Pitti Immagine S.r.l., Florence (until July 31, 2023)1
De Longhi S.p.A., Treviso 1.3
Aeroporti di Roma S.p.A., Rome (until April 30, 2023)¹
Non-executive member of the Board of Directors of Benetton S.p.A.
(since April 30, 2023)1
Comparable appointments in Germany and abroad
Independent, non-executive member of the Board of Directors of
JPMorgan Chase 1.3
Comparable appointments in Germany and abroad
Thales Deutschland GmbH, Ditzingen¹
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig (Deputy Chairman)²
Vera Schalwig (*1979)
Head of Human Resources Zuffenhausen
Member since: 2021
Nationality: German
Stefan Schaumburg (*1961)
Trade Union Secretary/Head of the Functional Area of
Collective
Bargaining at the Board of Management of IG Metall
Member since: 2021
Nationality: German
Volkswagen AG, Wolfsburg 1,3
2 Appointment within the group
Chairman of the works council Porsche Leipzig;
Member of Porsche group works council
Member since: 2019
Knut Lofski (*1963)
1 Appointment outside the group
Trade union secretary of IG Metall-Stuttgart office
Member since: 2021
Nationality: German
Porsche Holding Gesellschaft m.b.H., Salzburg¹
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg¹
Membership of statutory supervisory boards in Germany
Volkswagen AG, Wolfsburg (Chairman) 1.3
Bertelsmann Management SE, Gütersloh¹
Bertelsmann SE & Co. KGaA, Gütersloh¹
TRATON SE, Munich (Chairman) 1.3
Wolfsburg AG, Wolfsburg¹
Comparable appointments in Germany and abroad
Autostadt GmbH, Wolfsburg¹
Porsche Austria Gesellschaft m.b.H., Salzburg (Chairman)1
Porsche Holding Gesellschaft m.b.H., Salzburg (Chairman)1
Porsche Retail GmbH, Salzburg (Chairman)¹
VfL Wolfsburg-Fußball GmbH, Wolfsburg (Deputy Chairman)1
Micaela le Divelec Lemmi (*1968)
Member of the Supervisory Board at De Longhi Group
Member of the Supervisory Board at Aeroporti di
Roma S.p.A. (until April 30, 2023)¹
Member since: 2022
Nationality: Italian
AUDI AG, Ingolstadt¹
Chair & Chief Executive Officer at Kyriba
Nationality: German
Nora Leser (*1981)
Member since: 2019
Member of Porsche general and group works council
Works council Zuffenhausen
Melissa Di Donato Roos (*1972)
Akan Isik (*1971)
Member since: 2014
Head of International VIP & Special Sales Porsche AG
Wolfgang von Dühren (*1962)
Nationality: USA, British
Member since: 2022
Nationality: German
Guaranteed LTI 2022-2024
15.6
483,360
Guaranteed LTI 2022-2024
44.8
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
45.1
1,388,800
Short-term variable remuneration (STI) 2023
1,388,800
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
483,360
363,972
Tranche 1 of the IPO bonus
363,972
11.8
Tranche 1 of the IPO bonus
11.8
Total variable remuneration
2,236,132
72.2
Total variable remuneration
2,236,132
Variable remuneration
72.6
15.7
27.4
Variable remuneration
26.0
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
160
Andreas Haffner, Member of the Executive Board; Human Resources and Social Affairs
2023
€
%
Detlev von Platen, Member of the Executive Board; Sales and Marketing
2023
€
%
Fixed remuneration
Annual base salary
1.4
Fringe benefits
Short-term variable remuneration (STI) 2023
Fixed remuneration
800,000
25.8
62,656
2.0
862,656
27.8
Annual base salary
Fringe benefits
Total fixed remuneration
800,000
44,170
844,170
Total fixed remuneration
3,098,788
Barbara Frenkel
Pension expenses
Remuneration "granted and owed" within the meaning of section 162 (1)
sentence 1 AktG. The transitional provision of section 26j (2) sentence 2 of the
Introductory Law of the German Stock Corporation Act (EGAktG) was applied.
In 2022, before profit transfer.
The Supervisory Board regularly reviews and, if necessary,
adjusts the level of the total remuneration, maximum
remuneration and the individual targets. In preparation for the
IPO of Porsche AG, the Supervisory Board performed, among
other things, a vertical comparison with the remuneration and
employment terms of Porsche AG's employees and a horizontal
comparison with the market and competitive environment of
Porsche AG. From fiscal year 2023, the Supervisory Board will
use a peer group of other companies (peer group supplemented
by the DAX) to assess how customary the Executive Board
members' specific target total remuneration is when measured
against other businesses. The peer group is regularly reviewed
and adjusted, and currently comprises the following companies:
LVMH Moët Hennessy-Louis Vuitton SE, General Motors
Company (GMC), Samsung Electronics Co., Tesla Inc., Ltd.,
Mitsubishi Motors Corporation, BMW AG, Mercedes Benz AG,
Volvo AB, Kering S.A., Ferrari N.V., Nissan Motor Corporation,
II. OVERVIEW OF REMUNERATION
The Supervisory Board members receive fixed annual
remuneration of €260,000 (Chairman), €195,000 (Deputy
Chairman), and €130,000 (other members). They additionally
receive attendance fees at a flat rate of €9,000 per year for
their attendance of Supervisory Board and committee
meetings. For memberships of committees, additional annual
remuneration of €100,000 (committee chair) or €50,000
(other members) is paid per committee provided the committee
met at least once that year for the performance of its duties.
Memberships of more than two committees are not
remunerated separately. In this case, members receive
remuneration for their two functions in committees that pay the
highest fixed remuneration per fiscal year. Memberships of the
Nomination Committee are not taken into account.
Supervisory Board members who belonged to the Supervisory
Board or one of its committees for only part of the fiscal year
receive remuneration on a pro rata temporis basis (fixed
remuneration, additional remuneration and attendance fees).
The remuneration and flat-rate attendance fees are each
payable after the end of the fiscal year.
Corporate Governance Remuneration report 2023
173
↑↓ ↑ ||
174
Fixed remuneration
Work in committees
Meeting attendance fees
Total remuneration
Supervisory Board member
Dr. Wolfgang Porsche
(Chairman)
Jordana Vogiatzi³
(Deputy Chair)
Dr. Arno Antlitz¹
Ibrahim Aslan
%
€
%
%
€
%
260,000
70.5
100,000
9.1
27.1
-13.7
Employee remuneration
11.1
1.1
Former Executive Board members
Uwe-Karsten Städter
-82.0
Wolfgang Hatz
-32.1
-63.6
19.6
Earnings performance
Operating return on sales of the
0.0
12.5
Porsche AG Group (ROS)
EBITDA margin of the automotive
segment
Net income or loss for the year of
Porsche AG (HGB)²
71.9
114.2
2.0
2.9
Jaguar Land Rover Ltd., Hermès International SCA, SAP SE. The
companies were chosen to reflect the specific market and
competitive environment of Porsche AG. Owing to Porsche AG's
global presence, companies from outside Europe were also
included in the peer group.
B. REMUNERATION OF THE MEMBERS OF THE
SUPERVISORY BOARD
I. PRINCIPLES OF SUPERVISORY BOARD REMUNERATION
The remuneration of the members of the Supervisory Board is
governed by article 18 of the Articles of Association of Porsche
AG and comprises fixed remuneration only plus a flat rate for
attendance of meetings. The remuneration system for the
members of the Supervisory Board in accordance with section
113 (3) AktG was approved at the Annual General Meeting of
Porsche AG on June 28, 2023 by 100% of the votes cast. The
revision of the Supervisory Board remuneration system took
account of the new ARUG II requirements and the Code's
recommendations and suggestions for Supervisory Board
remuneration. The Code includes the suggestion that
Supervisory Board remuneration should be fixed remuneration.
Additionally, the Code recommends that the remuneration of
the Supervisory Board members should take into account, in an
appropriate manner, the higher time commitment of the
Chairman and the Deputy Chairman of the Supervisory Board
and the chairs and members of committees. An independent
remuneration consultant confirmed that the Supervisory Board
remuneration is commensurate with the duties of the
Supervisory Board members and the situation of Porsche AG
and is consistent with market rates.
Retired members of the Supervisory Board no longer receive
remuneration from Porsche AG for the period after the end of
their service.
III. OTHER REMUNERATION
Porsche AG reimburses Supervisory Board members for the
expenses they incur in the course of their work.
In accordance with article 18 (7) of the Articles of Association,
the members of the Supervisory Board were also covered by
directors and officers (D&O) insurance for an appropriate
amount taken out by Porsche AG in their interest.
IV. REMUNERATION OF ACTIVE SUPERVISORY BOARD
MEMBERS IN FISCAL YEAR 2023
The following table shows the active members of the
Supervisory Board of Porsche AG in fiscal year 2023 and the
remuneration individually granted and owed to each of the
Supervisory Board members in fiscal year 2023. This is based
on the same understanding of the term "granted and owed" as
explained for the Executive Board members. The remuneration
reported in the table therefore reflects the amounts actually
received in fiscal year 2023, i.e., the remuneration paid to the
Supervisory Board members for their work on the Supervisory
Board for fiscal year 2023, regardless of the date of actual
payment.
Average employee remuneration of
PAG
9,000
2.4
369,000
100.0
0
0.0
100,000
100.0
Micaela le Di Divelec Lemmi
130,000
68.8
50,000
26.5
9,000
4.8
189,000
100.0
Melissa Di Donato Roos
130,000
93.5
0
0.0
9,000
6.5
139,000
100.0
Wolfgang von Dühren
130,000
93.5
0
0.0
9,000
100,000
0.0
0
Dr. Christian Dahlheim²
100.0
195,000
76.8
50,000
19.7
9,000
3.5
254,000
100.0
0
0
0
0
130,000
Dr. Michael Steiner
93.5
0.0
9,000
6.5
139,000
100.0
Harald Buck
130,000
54.4
100,000
41.8
9,000
3.8
239,000
100.0
0
6.5
2.1
Albrecht Reimold
The following overview presents the projected pension
obligations for the individual Executive Board members at their
present value as of December 31, 2023 as well as the amount
of expenses or provisions recognized for pensions in
accordance with IFRS in fiscal year 2023. Other benefits such
as surviving dependents' pensions and the use of company cars
are also factored into the measurement of pension obligations.
€
Dr. Oliver Blume
Lutz Meschke
Projected pension
obligations
funded by the employer
according to IAS 191
Pension expenses
remuneration components from individual Executive Board
members.
IV. Remuneration of former Executive Board
members
In accordance with section 162 (1) sentence 1 AktG, the
remuneration granted and owed to former members of the
Executive Board of Porsche AG must also be reported.
1. REMUNERATION GRANTED AND OWED IN FISCAL YEAR
2023 (INDIVIDUALIZED)
Under section 162 (5) sentence 2 AktG, the obligation to report
individually on the remuneration granted and owed to former
Executive Board members also extends to remuneration
granted and owed in the ten years after their most recent term
of office on the Executive Board or Supervisory Board at
Porsche AG.
The following tables show the remuneration granted and owed
in fiscal year 2023 to the individual former members of the
Executive Board who left after fiscal year 2013.
Uwe-Karsten Städter
Former member of the Executive Board; Procurement
Exit date: August 18, 2021
Fixed remuneration
2023
€
%
Pension payments
154,080
Fringe benefits
1,020
99.3
0.7
Total remuneration within the meaning
155,100
100.0
of section 162 (1) sentence 1 AktG
Wolfgang Hatz
Former member of the Executive Board; Research and
Development
Mr. Meschke, Mr. Haffner, Mr. Reimold and Dr. Steiner have a
direct insurance policy within the meaning of section 40b of the
German Income Tax Act (EStG), with an annual premium of
€1,750 paid by Porsche AG for the duration of their service.
Exit date: May 3, 2016
Additionally, Executive Board members can participate in a
deferred compensation program to set aside a company
pension. Porsche AG pays interest of 3% to 6% p.a. on this
deferred compensation.
change in the period up to the age of 65 (for details on earlier
pension commitments, see the remuneration report 2022).
Allocation price
82.50
Closing price of sub-tranche 1
Dividend equivalent 2023
98.03
1.01
Closing price of sub-tranche 21
Dividend equivalent 2024
Closing price of sub-tranche 31
Dividend equivalent 2025
1 Determined at the end of the performance period.
2.2.2. Conformity with the Executive Board remuneration
system
The remuneration granted and owed to the members of the
Executive Board in fiscal year 2023 is in line with the
requirements of the Executive Board remuneration system.
There were no departures from the applicable Executive Board
remuneration system in fiscal year 2023. The payments from
the annual bonus and the performance share plan did not have
to be reduced due to the respective maximum values of the
individual remuneration components being exceeded, as 180%
of the target amount of the annual bonus and 200% of the
target amount of the performance share plan were not
exceeded.
2.2.3. Maximum remuneration
Maximum remuneration within the meaning of section 87a (1)
sentence 2 no. 1 AktG is in place for each Executive Board
member, as a result of which total remuneration is capped.
Overall, the remuneration granted and owed to the members of
the Executive Board in fiscal year 2023 did not exceed the
maximum remuneration provided for in the Executive Board
remuneration system.
2.2.4. Benefits and benefit commitments in connection with
termination
a) Benefits and benefit commitments to Executive Board
members for early termination
The service contracts of all Executive Board members provide
for termination periods in the event that an appointment as
member of the Executive Board is revoked, the member resigns
or the appointment is terminated by mutual agreement. In the
event that the appointment is revoked without there being
good cause within the meaning of section 626 (1) BGB, the
service contracts generally end after a period of 12 months
ending at month-end, unless the regular term of the service
contract ends prior to this date. The same applies to resignation
without good cause within the meaning of section 626 (1) BGB
as well as to termination of the appointment by mutual
agreement. Other remuneration is counted toward benefits
during the termination period.
In the event of the appointment being revoked without there
being good cause within the meaning of section 626 (1) BGB,
the Executive Board members receive a severance payment
equal to the gross remuneration for the remaining term of the
service contract, capped at the gross annual income for two
years. The annual income used as a basis for calculating the
severance payment is generally the prior-year fixed component
plus the annual bonus paid out for the past fiscal year.
Additionally, LTI tranches continue to be allocated during the
Corporate Governance Remuneration report 2023
169
↑ ↓ ↑ 0 |||
170
↑↓ ↑ 0 |||
term of the severance payment installments and to be settled
and paid out in accordance with the contractual provisions.
The severance payment is paid in equal monthly gross
installments from the time of the termination of the
appointment. Contractual remuneration paid by Porsche AG for
the period from the termination of the appointment until the
end of the service contract is offset against the severance
payment. Should Executive Board members take up other work
after the termination of their appointment, the amount of the
severance payment will be reduced by the amount of the
income earned from that work. The severance payment is not
made if Executive Board members continue to be employed by
Porsche AG or another Volkswagen Group entity under an
employment or service contract.
The severance provisions also apply in the event of termination
by mutual agreement without good cause within the meaning
of section 626 (1) BGB. In the event of resignation, Executive
Board members are not entitled to any severance payments.
The members of the Executive Board are also entitled to
retirement, invalidity and surviving dependents' benefits (more
details on these benefits in the next section) in the event of
early termination of their service, even if a pensionable event
does not occur.
b) Benefit commitments to Executive Board members for
regular termination of service
From January 1, 2023, the Executive Board members were
granted new pension commitments under the Executive Board
remuneration system. Porsche AG implemented a new capital-
market-oriented pension system. The members of the
Executive Board receive a defined contribution benefit
commitment in the form of a direct commitment for retirement,
invalidity and surviving dependents' benefits, funded through a
contractual trust arrangement. The promised retirement
benefits can be drawn from the age of 67, though they can be
drawn early from the age of 63. The annual pension
contribution is equal to 40% of the relevant contractual annual
base salary.
As of January 1, 2023, the pensions for all Executive Board
members were transitioned to the new pension system. The
pension benefits earned under the former pension system will
be maintained. As of December 31, 2022, the members of the
Executive Board were promised a fixed monthly pension from
the company, which can be claimed from the age of 65. The
promised pension amount already factors in an adjustment for
the period between the transition date and the age of 65 in
accordance with section 2a (2) sentence 2 no. 2a of the
German Law for the Improvement of Company Pension Plans
(BetrAVG), which means that the pension amount will not
Dr. Blume initially had a pension commitment from Porsche AG
until April 12, 2018 that was frozen on his appointment to the
Board of Management of Volkswagen AG as of April 13, 2018.
With respect to this pension commitment, Dr. Blume is treated
as if he left Porsche AG on April 12, 2018. He acquired a vested
benefit that will not increase and will not be adjusted. From
January 1, 2023, Dr. Blume received a new, capital-market-
oriented pension commitment from Porsche AG. His earlier
pension commitment remains frozen.
2023
in fiscal year 2023
3,952,119
2.2.5. No malus/clawback claims in fiscal year 2023
The prerequisites for a clawback claim affecting variable
remuneration components did not apply in fiscal year 2023.
Porsche AG therefore did not seek to claw back any variable
€
%
2. TOTAL REMUNERATION GRANTED TO EXECUTIVE BOARD
MEMBERS WHO LEFT BEFORE THE BEGINNING OF FISCAL
YEAR 2013
The remuneration granted and owed in 2023 to former
Executive Board members who left their office as an Executive
Board or Supervisory Board member before the beginning of
2014 and who were granted and owed remuneration in fiscal
year 2023, more than ten years after their exit from Porsche
AG, need not be reported separately pursuant to section 162
(5) sentence 2 AktG. A total of €2,239,538 was granted to
such former Executive Board members and their surviving
dependents in fiscal year 2023.
V. Comparative presentation
The following table shows a comparison of the year-on-year
percentage change in the remuneration of the Executive Board
members with the earnings performance of Porsche AG and
with the average remuneration of employees on a full time
equivalent basis. The remuneration of the Executive Board
members shown is the remuneration granted and owed as
presented in this report.
Earnings performance is determined on the basis of the
following earnings indicators: Porsche AG's net income or loss
for the year (HGB), the EBITDA margin of the automotive
segment, and the operating return on sales of the Porsche AG
Group.
For the comparison with the growth in average employee
remuneration, the average employee remuneration is calculated
by adjusting the personnel expenses of Porsche AG reported in
the notes to the annual financial statements of Porsche AG for
the remuneration of the members of the Executive Board.
These adjusted personnel expenses are divided by the average
number of full time equivalent employees of Porsche AG in
fiscal year 2023, excluding the members of the Executive
Board (employees of Porsche AG).
Corporate Governance Remuneration report 2023
171
172
%
Executive Board remuneration¹
Active Executive Board members
Dr. Oliver Blume
Lutz Meschke
Barbara Frenkel
Annual change Annual change
2023
2022
compared with compared with
2022
2021
7.5
54.3
-5.2
243.5
11.1
2.8
Andreas Haffner
Sajjad Khan
Detlev von Platen
2.8
Additionally, the company has obligations to Executive Board members from
the deferred compensation program.
Dr. Michael Steiner
Total
of section 162 (1) sentence 1 AktG
100.0
324,342
4,000,346
386,206
Barbara Frenkel
3,679,250
327,993
Andreas Haffner
Sajjad Khan
3,716,727
324,999
54,717
53,333
Detlev von Platen
4,196,289
324,420
11.6
Albrecht Reimold
324,731
3,537,814
325,355
Fixed remuneration
26,660,938
2,391,379
Pension payments
0
0.0
Fringe benefits
19,213
100.0
Total remuneration within the meaning
19,213
3,523,678
139,000
100.0
Akan Isik
Stefan Schaumburg
6.5
59.7
Carsten Schumacher
35.8
38.7
Dr. Hans Peter Schützinger
-100.0
Hauke Stars
Earnings performance
Operating return on sales of the
0.0
12.5
Porsche AG Group (ROS)
EBITDA margin of the automotive
2.0
2.9
segment
Net income or loss for the year of
Porsche AG (HGB)²
71.9
114.2
Average employee remuneration of
PAG
-13.7
9.1
Remuneration "granted and owed" within the meaning of section 162 (1)
sentence 1 AktG. The transitional provision of section 26j (2) sentence 2 of the
Introductory Law of the German Stock Corporation Act (EGAktG) was applied.
2 In 2022, before profit transfer.
Corporate Governance Remuneration report 2023
177
↑↓ ↑ ||
387.5
178
4.1
162.6
Dr. Oliver Blume
Chairman of the Executive
Board
Lutz Meschke
Deputy Chairman of the
Executive Board
Dr. Wolfgang Porsche
Chairman of the Supervisory Board
Dr. Christian Dahlheim
252.7
Micaela le Divelec Lemmi
265.0
Melissa Di Donato
265.0
Wolfgang von Dühren
4.1
37.9
Akan Isik
4.1
37.9
Nora Leser
31.0
75.9
Knut Lofski
4.1
37.9
Dr. Hans Michel Piëch
61.8
104.6
Dr. Ferdinand Oliver Porsche
123.3
464.2
Hans Dieter Pötsch
Vera Schalwig
19
COMBINED MANAGEMENT REPORT
WITH NON-FINANCIAL STATEMENT
PORSCHE AG HGB FINANCIAL STATEMENTS (CONDENSED VERSION)
NON-FINANCIAL STATEMENT 2023
210 Sustainability management and organization
214
EU taxonomy
228
Environment
236
Social
250
Governance
254
254
262
267
270
REPORT ON RISKS AND OPPORTUNITIES
General principles of risk and opportunity management
Risks and opportunities as of December 31, 2023
Financial risk management and methods as well as opportunities
269 Summary
270
REPORT ON EXPECTED DEVELOPMENTS
Development of the global economy and passenger car markets
271
Forecast assumptions
273
Overall statement on anticipated development
179
↑↓ ↑ ||
Net assets
Financial position
RESULTS OF OPERATIONS, FINANCIAL POSITION AND NET ASSETS
Results of operations
210
86
959 S
180
FUNDAMENTAL INFORMATION ABOUT THE GROUP
180
Business model
182 Strategic direction of the Porsche AG Group
Management and key performance indicators
Corporate Governance Declaration
183
185
186
186
BUSINESS DEVELOPMENT
Macroeconomic environment
187
45.6
Sector-specific environment
Deliveries
190
Production
191
Research and development
191
Personnel
192
Overall statement on business development and the economic situation
194
194
198
202
205
188
35.8
Harald Buck
1,303.8
100.0
Dr. Ferdinand Oliver Porsche
130,000
68.8
50,000
26.5
9,000
4.8
189,000
100.0
Hans Dieter Pötsch
130,000
93.5
0
0.0
9,000
6.5
139,000
100.0
Vera Schalwig
130,000
93.5
0
0.0
9,000
6.5
139,000
100.0
Stefan Schaumburg
139,000
6.5
9,000
0.0
Nora Leser
130,000
93.5
0
0.0
9,000
6.5
139,000
100.0
130,000
68.8
50,000
26.5
9,000
130,000
4.8
100.0
Knut Lofski³
130,000
93.5
0
0.0
9,000
6.5
139,000
100.0
Dr. Hans Michel Piëch
130,000
93.5
0
189,000
€
93.5
0.0
2
These Supervisory Board members waived remuneration in part for fiscal year 2023.
3
Remuneration was waived for Supervisory Board activities on the Supervisory Board of Porsche Leipzig GmbH.
Corporate Governance Remuneration report 2023
Remuneration for serving on
the boards of other group
companies
175
↑↓ ↑ 0 |||
176
V. Comparative presentation
The following table shows a comparison of the year-on-year
percentage change in the remuneration of the Supervisory
Board members with the earnings performance of Porsche AG
and with the average remuneration of employees on a full time
equivalent basis.
Earnings performance is determined on the basis of the
following earnings indicators: Porsche AG's net income or loss
for the year (HGB), the EBITDA margin of the automotive
segment, and the operating return on sales of the Porsche AG
Group.
The comparative figure for the growth in average employee
remuneration is the amount used for the comparative
presentation for the Executive Board members in section A.V.
%
Supervisory Board remuneration'
Active Supervisory Board members
Dr. Wolfgang Porsche (Chairman)
Jordana Vogiatzi (Deputy Chair)
Dr. Arno Antlitz
Annual change Annual change
2023
compared with compared with
2022
2022
For the Executive Board:
2021
February 28, 2024
For the Supervisory Board:
February 28, 2024
126.6
37.1
287.7
53.2
Ibrahim Aslan
These Supervisory Board members waived remuneration in full for fiscal year 2023.
1
100.0
3,019,000
9,000
6.5
139,000
100.0
Carsten Schumacher
130,000
54.4
100,000
41.8
9,000
3.8
239,000
100.0
Dr. Hans Peter Schützinger¹
0
0
0
0
Hauke Stars¹
0
0
0
0
Total
2,275,000
75.4
600,000
19.9
144,000
4.8
0
The allocation price, the closing price of the Porsche preferred
share relevant for sub-tranche 1 and the dividend equivalent
can be found in the following overview.
3,675
28,480
28,480
24.0
18.0
24.7
106.0
140.0
The following overview shows the minimum values, target
values and maximum values set by the Supervisory Board for
fiscal year 2023 for the environmental (decarbonization index)
and social (gender quota and customer excitement index) sub-
targets, along with the actual figures and target achievement
levels in fiscal year 2023.
The decarbonization index (DCI) aims to provide an overview of
the CO2 equivalent emissions along the value chain (production,
use and end of life) based on an assessment of environmental
impacts such as the CO2 footprint over the entire life cycle of a
vehicle. For Porsche AG, the DCI is an important performance
Corporate Governance Remuneration report 2023
163
↑↓ ↑ 0 ||
164
indicator in terms of the transparent and comprehensive
management of the company's progress towards a net carbon
neutral value chain of the newly produced vehicles in 2030.
Promoting diversity and equal opportunities is a high priority.
Porsche AG is convinced that diversity and equal opportunities
are key factors for long-term corporate success. Therefore, the
company has set out to further increase the proportion of
women at all levels and has defined a target for the gender
quota.
A central goal of Porsche AG is to excite its customers.
Porsche AG does not just want to meet customers'
expectations, but to exceed them. Using the customer
excitement index Porsche AG measures how enthusiastic
customers are along their journey - a basic requirement for
continuous improvement. Incorporating this indicator achieves
the goal of creating a direct link between customer excitement
and Executive Board remuneration.
Environmental
Decarbonization index
2023
%
The Supervisory Board uses the governance factor to convey its
satisfaction with the Executive Board's actual conduct in
relation to integrity and compliance expectations. As a rule, the
governance factor should be 1.0 and should only be reduced to
0.9 or increased to 1.1 after due consideration in exceptional
circumstances. For fiscal year 2023, the Supervisory Board set
the governance factor at the standard value of 1.0 for all
Executive Board members, having considered and evaluated
the collective performance of the Executive Board and the
individual performance of its members.
The following overview shows the threshold values, target
values and maximum values set by the Supervisory Board for
fiscal year 2023 for the decarbonization index, the gender
quota and the customer excitement index, along with the actual
figures and multiplication factor achieved in fiscal year 2023.
Social
Gender quota for the
first reporting level
Gender quota for the
second reporting level
Customer excitement
index
2023
2023
2023
In tCO₂e/vehicle
Maximum value (1.3)
30.0
62.5
bb) ESG factor
Threshold value (50%)
Actual
3,414,648
Total STI capped at 180%
ESG
Social (S)
14
Customer
excitement index
] × [
Governance (G)
Governance
factor
Multiplier 0.9-1.1
The annual bonus is a short-term variable remuneration
component based on target achievement during the fiscal year.
It is aligned with the financial targets of Porsche AG and an ESG
factor. The Supervisory Board of Porsche AG sets the target
values for each fiscal year. After the end of the fiscal year,
target achievement is reviewed and the payment amount
determined. The payment amount is calculated by multiplying
the individual target amount by the sum of the weighted
financial sub-target achievement levels and then by the ESG
factor. The annual bonus can range between €0 and 180% of
the target amount (cap). The resulting amount is paid out to
the Executive Board members, subject to malus provisions. The
actual figures are rounded to one decimal place, although the
initial calculation is based on two decimal places; any
deviations are due to rounding differences.
aa) Financial targets
The following overviews show the threshold values, target
values and maximum values set by the Supervisory Board for
fiscal year 2023 for the operating return on sales of the
Porsche AG Group (ROS) and the return on investment of the
Porsche AG automotive segment (ROI), along with the actual
figures and target achievement levels in percent in fiscal year
2023.
%
ROS
2023
Maximum value (200%)
Target value (100%)
19.0
15.0
Threshold value (50%)
12.5
Actual
18.0
Target achievement (in %)
174.0
ROI
Maximum value (150%)
Target value (100%)
Target achievement (in %)
Total target achievement
Maximum value (1.3)
20.5
18.4
Virtual performance share plan
Chairman of the Executive Board1: €0;
Deputy Chairman of the Executive Board:
€653,400; Executive Board member:
€945,000
Measured forward over three years
EPS of Volkswagen AG (100%)
200% of the target amount, i.e.:
Chairman of the Executive Board: €0; Deputy
Chairman of the Executive Board:
€1,306,800; Executive Board member:
€1,890,000
-Pro rata reduction of the target amount if
the service contract starts or ends during
the fiscal year when shares are granted
- Forfeiture of all outstanding tranches
without replacement or compensation in
the event of the Executive Board member
being responsible for termination for good
cause pursuant to section 626 BGB or
revocation of appointment because of
gross breach of duty pursuant to section
84 (4) AktG or breach of (post-
contractual) non-competition covenant
Target
The long-term incentive granted until
December 31, 2022 was intended to
align the remuneration of the Executive
Board members with the Volkswagen
Group's long-term performance and was
measured against the financial
performance target EPS (earnings per
share) of Volkswagen AG in conjunction
with share price performance and the
dividends paid.
1 Dr. Oliver Blume received his remuneration exclusively from Volkswagen AG until the end of fiscal year 2022. Dr. Blume received no separate remuneration from
Porsche AG.
Including voluntary CO₂ compensation measures through climate change mitigation projects
The overall ESG factor is calculated using the weighted sub-
factors environmental (50%), gender quota (25%) and
customer excitement index (25%) and amounts to 1.24 for
fiscal year 2023.
b) Performance criteria for long-term incentive (LTI) 2020-
2022 and the outlook for the LTI 2021-2023 and 2022-2024
aa) Information on the LTI under the former Executive Board
remuneration system
The former Executive Board remuneration system provided for
share-based long-term variable remuneration for the Executive
Board members in the form of a forward-looking performance
share plan with a term of three years. The LTI was based on the
share price performance and EPS of the Volkswagen AG
preferred share (German securities identification number:
766403) during the three-year term. The Executive Board
members were allocated a certain number of performance
shares at the beginning of the three-year performance period,
depending on the respective target value. After the
performance period had ended, the final number of
performance shares was determined on the basis of the
average EPS target achievement of the Volkswagen preferred
share during the performance period. The final number of
performance shares was multiplied by the sum of the
Volkswagen preferred share price on each of the last 30 trading
days prior to the end of the performance period, rounded in line
with common business practice to two decimal places, and the
dividends paid per Volkswagen preferred share in the
performance period. The LTI can range between €0 and 200%
of the target amount (cap).
Under the former Executive Board remuneration system, the
members of the Executive Board were allocated a total of three
tranches of the performance share plan: 2020-2022, 2021-
2023 and 2022-2024. The first tranche of the three-year
performance share plan with the performance period 2020-
2022 was paid out in fiscal year 2023.
LTI grant
Performance period
EPS performance measurement
€ target value
Target achievement in %
÷
150
Share price (beginning of
100
50
the performance period)
=
Provisional number
of (virtual)
Exit:
Cap:
Performance
period:
Performance
criterion:
Plan type:
Target amount
until December
31, 2022:
47.0
Target value (1.0)
63.5 Target value (1.0)
18.6
16.7
45.0
Threshold value (0.7)
64.5
Threshold value (0.7)
16.7
15.0
43.0
Actual¹
62.7
Total remuneration including pension expenses
Actual
17.3
46.7
Target achievement
Target achievement
(factor)
1.26
(factor)
1.22
1.10
1.26
The following table provides an overview of the LTI under the
former Executive Board remuneration system.
Remuneration component
Long-term incentive (LTI) until
December 31, 2022
Measurement base/parameters
20.0
Multiplier 0.7-1.3
50 to 200%
50 to 150%
1.2
Fringe benefits
137,602
37.2
Total fixed remuneration
800,000
66,052
25.8
866,052
2.1
27.9
Variable remuneration
232,101
62.8
Short-term variable remuneration (STI) 2023
1,388,800
44.8
0
0.0
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
Guaranteed LTI 2022-2024
0
0.0
Tranche 1 of the IPO bonus
232,101
62.8
369,702
53,333
100.0
Total variable remuneration
Total remuneration including pension expenses
423,035
4,268
Annual base salary
36.0
133,333
324,999
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
3,080,302
100.0
324,420
Total remuneration including pension expenses
3,423,787
Total remuneration including pension expenses
3,404,722
Sajjad Khan¹, Member of the Executive Board; Car-IT
Albrecht Reimold, Member of the Executive Board; Production and Logistics
2023
€
%
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
2023
%
Fixed remuneration
Annual base salary
Fringe benefits
Total fixed remuneration
Variable remuneration
Short-term variable remuneration (STI) 2023
Multiyear variable remuneration/long-term incentive (LTI)
Guaranteed LTI 2022-2024
Tranche 1 of the IPO bonus
Total variable remuneration
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
Fixed remuneration
€
performance shares
Mr. Khan has been a member of the Executive Board of Porsche AG since November 1, 2023; remuneration is calculated pro rata temporis.
483,360
=
Payment amount
Short-term variable remuneration (STI) 2023
1,388,800
45.0
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
Environment (E)
Guaranteed LTI 2022-2024
483,360
15.6
སཊྛ
12
Tranche 1 of the IPO bonus
363,972
11.8
ROI
+
1/2
ROS
×
½
Decarbonization
index
+
14
Gender quota
+
Total variable remuneration
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
2,236,132
3,089,293
325,355
72.4
100.0
Target achievement
×
Target value
a) Performance criteria for the annual bonus
15.6
363,972
11.7
2,236,132
72.1
3,102,184
100.0
324,731
3,426,915
Corporate Governance Remuneration report 2023
161
↑↓ ↑ 0 |||
162
Dr. Michael Steiner, Member of the Executive Board; Research and Development
Total remuneration including pension expenses
Fixed remuneration
Fringe benefits
Total fixed remuneration
Variable remuneration
2023
€
%
800,000
25.9
53,161
1.7
853,161
27.6
2.2. Explanations
2.2.1. Performance criteria for variable remuneration
Annual base salary
100.0
LTI payment
×
The following table provides an outlook on the performance
criteria for the already allocated 2023-2026 tranche.
bb) Information on the performance shares
Dr. Oliver Blume
Lutz Meschke
Performance period
2023-2026
Number of virtual shares allocated at
the date of allocation
11,811
13,780
11,549
11,549
1,930
Detlev von Platen
11,549
Albrecht Reimold
11,549
11,549
85,266
Andreas Haffner
Sajjad Khan
Dr. Michael Steiner
Total
cc) EPS performance
The following overview shows the minimum values, target
values and maximum values set by the Supervisory Board at the
beginning of the performance period 2023-2026.
Corporate Governance Remuneration report 2023
167
↑↓ ↑ 0 |||
168
Performance period 2023-2026
EPS Porsche preferred share
€
aa) Information on the performance share plan 2023-2026
The four-year performance share plan based on the share price
performance and EPS of the Porsche preferred share applies to
all Executive Board members from January 1, 2023. For Mr.
Khan, the four-year performance share plan for fiscal year 2023
applies pro rata temporis from November 1, 2023 onwards. For
this purpose, Executive Board members are allocated virtual
performance shares at the beginning of each fiscal year. The
payment amount from the performance share plan after the end
of a four-year performance period is based on the EPS of the
Porsche preferred share during the performance period and
share price performance including dividends of the Porsche
preferred share. There is no guaranteed amount.
Maximum value
d) Performance criteria for the long-term incentive (LTI) 2023-
2026
The guaranteed amounts paid out in fiscal year 2023 for fiscal
year 2022 will be netted with the payment amount from the
performance share plan 2022-2024 at the end of the
performance period 2022-2024. If the payment amount for
2022
Target achievement (%)
148
148
83
Maximum value
30.00
30.00
Target value 100%
20.00
20.00
Minimum value
10.00
10.00
31.98
29.69
150
148
The following overviews show the minimum values, target
values and maximum values set by the Supervisory Board at the
beginning of the performance periods 2021-2023 and 2022-
2024 under the former Executive Board remuneration system,
along with the actual figures and target achievement levels
attained in percent for the individual years of the assessment
period up to and including 2023. The performance share plans
for the performance periods 2021-2023 and 2022-2024
were not due in fiscal year 2023 and have not yet been paid
out; they therefore do not constitute remuneration granted or
owed in fiscal year 2023.
Actual
Target achievement (%)
dd) Reference prices/dividend equivalent
The relevant reference prices and dividend equivalents for the
performance period 2020-2022 can be found in the following
overview.
1 Determined at the end of the performance period
c) Guaranteed amounts
2021-2023 2022-2024
175.75
Until December 31, 2019, the long-term variable remuneration
for Executive Board members comprised a backward-looking
corporate bonus and a backward-looking long-term incentive.
Due to the change from backward-looking to forward-looking
long-term variable remuneration as of January 1, 2020, there
was a temporary payout gap for the Executive Board members
already appointed at that time for the first two fiscal years after
the change, that is, fiscal years 2021 and 2022. Thus Porsche
AG guaranteed certain amounts for the Executive Board
members during the transitional period. This applies to the
active Executive Board members Mr. Meschke, Mr. Haffner, Mr.
von Platen, Mr. Reimold and Dr. Steiner.
In fiscal year 2023, the guaranteed amounts for fiscal year
2022 shown in the tables were paid out. The guaranteed
amounts paid out in 2023 were 80% of the individual target
direct remuneration for 2019, comprising the annual base
salary, the personal performance-based bonus, the corporate
bonus and the LTI for 2019, less the annual base salary and
annual bonus for 2022.
the performance share plan 2022-2024 exceeds the
guaranteed amount for fiscal year 2022 paid out in 2023, the
excess amount is paid out. If the payment amount from the
performance share plan is lower than the compensation
payment for the guaranteed amount, the difference is not
reclaimed. Any payment from the performance share plan
2022-2024 at the beginning of 2025 exceeding the
compensation payment for the guaranteed amounts will be
reported in the remuneration report 2025.
Target value 100%
Minimum value
Actual
Albrecht Reimold
Dr. Michael Steiner
Total
Sub-tranche 1
From IPO date to first anniversary
Sub-tranche 2
From IPO date to second anniversary
Sub-tranche 3
From IPO date to third anniversary
Number of performance shares allocated Number of performance shares allocated Number of performance shares allocated
at the date of allocation
at the date of allocation
cc) Reference prices/dividend equivalent
at the date of allocation
6,430
6,430
3,675
3,675
6,430
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
3,675
28,480
Detlev von Platen
Sajjad Khan
Andreas Haffner
Barbara Frenkel
Target achievement (%)
2023
6.00
4.50
3.50
5.67
139
dd) Reference prices/dividend equivalent
The relevant reference prices and dividend equivalents for the
already allocated performance share plan 2023-2026 can be
found in the following overview.
Performance period 2023-2026
€
Initial reference price
Closing reference price¹
Dividend equivalent
2023
2024
2025
2023
2026
e) IPO bonus
aa) Information on the IPO bonus
2023-2026
101.60
1.01
■
Porsche AG concluded an agreement with the Executive Board
members on a bonus for a successful IPO of Porsche AG in the
form of a virtual share plan with a three-year term starting from
the IPO date. The aim of this IPO bonus is to provide
appropriate incentives for the Executive Board members in
preparing the IPO and take into account the long-term success
of the IPO. The IPO bonus is based on market capitalization, the
share price performance of the Porsche preferred share as well
as the dividends paid during the performance period.
The Executive Board members were allocated virtual shares on
the IPO date (September 29, 2022). The number of allocated
virtual shares was determined according to the grant amount
calculated using the (theoretical) market capitalization based
on the placement price of the Porsche preferred share. For this
purpose, Porsche AG defined a threshold value, a target value
and maximum value for market capitalization. The number of
virtual shares to be allocated was calculated by dividing the
grant amount by the closing price of the Porsche preferred
share in the XETRA trading system of Deutsche Börse AG on the
first day of trading (allocation price). The number of virtual
shares calculated in this manner was rounded in line with
common business practice to the next whole number divisible
by three and the rounded number of virtual shares was divided
into three equal sub-tranches with a term of one, two and three
years from the IPO date. The term of the first sub-tranche
ended on the first anniversary of the IPO, the second sub-
tranche ends on the second anniversary and the third sub-
tranche ends on the third anniversary.
After the end of the respective term, the payment amount from
the sub-tranche is determined by multiplying the number of
virtual shares of the respective sub-tranche by the sum of the
arithmetic mean of the closing prices of the Porsche preferred
share on each of the last 30 trading days prior to the end of
term of the respective sub-tranche (closing price) and the
dividends paid out during the term of the respective sub-
tranche.
The payment amount of the IPO bonus is subject to a cap and a
floor for each sub-tranche. If the closing price plus the
dividends paid out during the term of the respective sub-
tranche falls short of the allocation price by more than 30%, the
Executive Board member will receive a minimum payment for
the relevant sub-tranche of 70% of one third of the grant
amount. The maximum payment amount for each sub-tranche
is 150% of one third of the grant amount. The total payment
amount of the IPO bonus is thus subject to cap.
The sub-tranches of the IPO bonus will be presented in detail in
the remuneration report for the relevant year. This remuneration
report covers the first sub-tranche of the IPO bonus, which was
paid out at the end of October 2023. The second and third sub-
tranches are not remuneration granted and owed in fiscal year
2023.
bb) Information on the virtual shares of the IPO bonus
Dr. Oliver Blume
Lutz Meschke
1 Determined at the end of the performance period.
€
16.66
29.65
2020
the date of allocation
Dr. Oliver Blume
0
0
0
2021
2022
4.86
4.86
7.56
Lutz Meschke
3,682
4,381
3,718
Barbara Frenkel
0
1,866
5,377
Andreas Haffner
4,240
5,045
5,377
Detlev von Platen
4,240
5,045
5,377
Albrecht Reimold
4,240
5,045
5,377
Dr. Michael Steiner
Number of virtual shares allocated at
Number of virtual shares allocated at
the date of allocation
Number of virtual shares allocated at
the date of allocation
177.44
131.74
Share price plus
dividends (end of
the performance period)
0
5
10
15
20
25
30
35
40
=
EPS per preferred share in €
Measurement of EPS performance over three years
4,240
€ payment
165
↑↓ ↑ 0 |||
166
The following overview shows the relevant reference prices of
the Volkswagen preferred share and the dividend equivalents
for the performance periods of the performance share plans
2021-2023 and 2022-2024 that were allocated under the
former Executive Board remuneration system, are not yet due
and have not yet been paid out.
bb) Information on the performance share plan
Performance period
2020-2022
€
2020-2022
Initial reference price
Performance period
2021-2023
Performance period
2022-2024
Closing reference price
Dividend equivalent
Corporate Governance Remuneration report 2023
Final number of (virtual)
performance shares
Total
5,045
26,427
148
148
Dividend equivalent
2021
2022
2023
4.86
7.56
27.82
7.56
27.82
€
2022
2021
2020
Maximum value
30.00
30.00
30.00
Performance period 2022-2024
Target value 100%
20.00
20.00
20.00
EPS Volkswagen preferred share
Minimum value
10.00
10.00
10.00
Actual
29.69
150
Target achievement (%)
29.65
29.69
5,377
30,603
€
Initial reference price
149.14
cc) EPS performance
The following overview shows the minimum values, target
values and maximum values set by the Supervisory Board at the
beginning of the performance period for the performance share
plan 2020-2022, which was paid out in fiscal year 2023 to the
extent that the payment amount exceeded the guaranteed
amount paid out for 2020.
Performance period 2020-2022
EPS Volkswagen preferred share
Performance period 2021-2023
Closing reference price1
110.83
EPS Volkswagen preferred share
€
2023
20,642
2022
Maximum value
30.00
30.00
30.00
Target value 100%
20.00
20.00
20.00
Minimum value
10.00
10.00
10.00
Actual
31.98
2021
10.4