of the Executive Board
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
16 Letter from the Chairman of the Executive Board
18 The Executive Board
Annual Report Porsche AG 2015
20
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
62
68 Employees, Sport and Society
the ideal turbocharger for sporting talents 50
98
How our family lineage is influencing the Mission E. Page:
Unmistakably Porsche.
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
THE IDEAL LINE 5
As a Pioneer on the Way to Mission E
78
DMG MORI
94 Research and Development
116 Sales, Production and Procurement
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.
Oliver Blume
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.
Yours faithfully
ваки Вите
Oliver Blume
Letter from the Chairman of the Executive Board
17
World Endurance
Drivers' Champion
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.
Letter from the Chairman
16
Annual Report Porsche AG - 2015
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
136 Emission and Consumption Data
138 Key Performance Indicators of the Porsche AG Group
98
Mobil
42 Business Development
SEASE
11/10/2015
21/11/2015
6h AUSTIN1 12
6h
6h
919 Hybrid Nr. 17
Кәрмен
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FUJI1 2
01/11/2015
6h
919 Hybrid Nr. 17
Bernhard
Webber
Hartley
19/09/2015
919 Hybrid Nr. 18
NÜRBURGRING1 2
24 h
WEC
World Endurance
Manufacturers' Champion
PORSCHE
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STUTTGART
PORSCHE
Annual Report 2015
12/04/2015
PC
SILVERSTONE2-
*** 6 h SPA-FRANCORCHAMPS 236
02/05/2015
30/08/2015
13.-14/06/2015
6h
LE MANS1.2.5
Dumas
6h
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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
THE IDEAL LINE 3
A Future to Look Forward to
50
Annual Report - Porsche AG - 2015
PARO CHO
DMG MORI
Jami
20
and methods drives the staff. Page:
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:
Porsche stands for innovation.
The constant search for new technologies
qǝ
juer
919 Hybrid Nr. 18
WEC
World Endurance Drivers' Champion | World Endurance Manufacturers' Champion
LMP1
sewing
BAHRAIN1.5
Annual Report - Porsche AG - 2015
The Ideal Line
Annual Report Porsche AG-2015
THE IDEAL LINE 1
Turbocharger of Ideas
SHANGHAT12
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.
Motivation
Trust
Alexander Steiniger
than seeing his or
her own ideas being
implemented?"
Transparency
"What can motivate
an employee more
Head of Undercarriage Assembly
Alexander Steiniger is constantly on
the lookout for optimisation.
Systematic Transfer
of Knowledge
Dynamics
Inspiration
Freedom
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.
"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
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.
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.
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.
"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."
Foresight
33
Success Factor: Human Capital
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?"
32
Inspiration
31
Annual Report Porsche AG - 2015
29
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
into production vehicles.
Annual Report Porsche AG 2015
Motivation
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
When talking to colleagues, all that matters for
Christian Pfänder is the strength of the arguments.
Generally the role of the "innovator" is left up to the R&D
department in industrial companies. But Blume takes
Foresight
Dynamics
Dynamics
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
37
Success Factor: Human Capital
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.
Freedom
-03-02-
0,0
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
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-0.3
34
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0,5-04-
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12-08
197-02
205
90
<--0400
-0500
1233-
0,3
1014
RPSOUTE
Success Factor: Human Capital
28
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
PORSCHE
Dynamics
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.
Motivation
Inspiration
Trust
URSCHE PRODUKTION
Mit unseren Innovationen gestalten wir den
Wettbewerbsvorsprung der Produktion.
Transparency
"Porsche puts
people first."
Oliver Blume
911 Targa 45
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.
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.
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
Success Factor
Human Capital
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. -
Foresight
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
Trust
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
The inner drive to create
something new comes naturally to us.
Andreas Haffner
Human Resources
Success Factor: Human Capital
Motivation
Annual Report Porsche AG 2015
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
25
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
Inventive Minds
are Encouraged
Transferring innovations into structured project
management is a major factor of our success.
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.
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.
Trust
been realised since 2014.
27
15
Foresight
Freedom
Inspiration
innovation projects have
for Ideas
Transparency
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
frowned upon."
Turbocharger
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.
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
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.
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.
61
innovation measures are
being worked on as we speak.
Sarah Heizmann
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.
· Porsche Basketball Academy Ludwigsburg
By bringing together 11 partner clubs and
8- to 16-year-olds can develop their skills in the
ice-hockey summer camp sponsored by Porsche.
- SC Bietigheim-Bissingen Steelers
AMBE
55 partner schools, a total of 2,500 children
from the Stuttgart region are able to train.
together to tackle new challenges.
56
and in peak form. While
training, it's the moment
that counts ...
With full concentration
EMH
Sponsoring Sport
at Porsche AG
Annual Report Porsche AG - 2015
55
- RB Leipzig
... and the support of the team. The
juniors show how they are growing
Underprivileged children are supported in the
football school here. A special highlight is the
"Leipzig Quarter Final" city tournament for
700 children.
In the mood to play:
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.
PORSCHE COMPANY
57
Promotion of Young Talents I
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.
Lutz Meschke
"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).
Stuttgarter Kickers
SG Sonnenhof Großaspach
HMHP
Economic growth is expected to remain high
GAZI
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%
to customers. At 9,898 and 6,663 deliveries
respectively, the 911 and Boxster/Cayman
A total of 4,986 Panameras were 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.
New Vehicles Delivered
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
Germany 0.6%
Western Europe -0.3%
2012
2013
2014
2015
43
Global Economy Experiences Very Moderate Growth
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
2.5%
2.4%
1.6%
1.5%
0
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).
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.
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.
Annual Report Porsche AG 2015
44
South America: Holding Ground
Despite the Headwind
Spain/Portugal: Signs of 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.
Switzerland: High Demand for the 911
+33% Porsche Switzerland set a new record in finan-
Porsche Switzerland
increased its
deliveries by one
third in the financial
year 2015.
1/3
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.
Deliveries of the
Porsche Cayenne S
E-Hybrid make
cial year 2015, lifting its deliveries by a third
to 3,822 vehicles. Despite the upcoming change
of model, Porsche 911 sales increased 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.
Austria: 28-percent Growth
Porsche increased its deliveries in Austria by
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.
Uhlsport
up one third of
deliveries in the
Benelux countries.
2.5%
2.2%
Porsche Cars Great
Britain exceeded
the previous year's
figure by one third
with 12,238 vehicles.
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.
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.
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.
Europe
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.
Europe Region: A Strong Market
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.
+33%
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
+21%
Deliveries in
Porsche's home
market of Germany
again achieved
a record high of
28,953 new vehicles.
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.
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.
Belgium/Netherlands/Luxembourg:
Hybrid Models Dominate
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.
Business Development
USA
Business
Development
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-
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."
That is why a vehicle like the new Porsche Mission E with its
innovative electric drive and complex control engineering
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.
Motivation
Trust
Marina Tsolakidou is going through her trainee
programme step by step and sees
every learning achievement as a personal gain.
Transparency
Dynamics
Freedom
Inspiration
AMISUNGH
courses.
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
Targeted Training
Foresight
Annual Report - Porsche AG - 2015
Annual Report Porsche AG - 2015
An eye for detail - Oliver Blume
with Maring and Juchem
at the so-called "Meisterbock".
38
Success Factor: Human Capital
The new Porsche training centre in
Zuffenhausen provides an optimum learning
environment and state-of-the-art facilities.
PO 193
AMB
PRO
1:4
"The quality of a vehicle does
not first emerge on the conveyor belt,
but long before that."
Kai Maring
39
36-379 3
"A training position at
Porsche is highly sought
after. We get 2,800
applications every year."
Dieter Esser
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.
41
FESTO
Annual Report - Porsche AG 2015
China 7.7%
Economic Growth
Change in GDP
Skilled handling of real components:
Marina Tsolakidou at a control panel for
simulating the production technology.
6.9%
Delivery of
New Vehicles
in units
225,121
189,849
161,982
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.
Global Economy
MITSUBH
40
150
young people are
trained by Porsche every
business year - with a
guaranteed job at the end.
12
socially disadvantaged
youths were given
the chance to take part
Success Factor: Human Capital
in a promotional year.
of apprentices in the
technical/commercial area
are middle-school-leavers.
50%
increase in the number
of apprentices in the
past three years.
40%
45
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.
46
GASE
GAZI
Promotion of Young Talents I
Rainer Lorz
Lutz Meschke
52
Annual Report Porsche AG - 2015
51
X
0x21
Promotion of Young Talents I
50
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.
all social backgrounds with the "Turbo for talented athletes"
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
A
Team
Spirit
and
Scoring
Goals
Stuttgarter Kickers.
juniors of the
training with the
on the way to
CFO, Lutz Meschke,
Annual Report Porsche AG - 2015
49
Annual Report Porsche AG 2015
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
Familiar ground beneath his feet:
Lutz Meschke shares his football
experience with the young talents ...
... and is fully involved in the game.
This unbridled commitment unleashes
new energy and boosts the confidence
of the young players.
"In football you learn
very quickly that you
can only find solutions
as a team."
Lutz Meschke
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.
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.
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.
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
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?
& Lorz, specialising in
giving advice to family
businesses and charities.
Hennerkes, Kirchdörfer
Prof. Dr. Rainer Lorz,
President of Stuttgarter
Kickers, visiting professor
at the University of
Stuttgart and partner in
the renowned law firm
Deputy Chairman and
Member of the Executive
Board of Porsche AG,
responsible for finance
and IT.
Lutz Meschke,
with
Conversation
A
Chile. By chance, I happened to have slept in the same
2013 2014 2015
Business Development
47
48
Annual Report Porsche AG - 2015
54,000
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
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.
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
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.
+24%
With 58,009 vehicles
China was Porsche's
strongest individual
sales market for the
first time.
Japan: More than 6,000 New
Vehicles Delivered
Porsche Japan again smashed the record set
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.
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.
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
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.
Asia-Pacific: Milestone Reached
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
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.
Middle East and Africa: Consolidation
A total of 8,520 vehicles were delivered to
customers in the Middle East and Africa region
South Korea: Strong Growth
Strategic Plant Development
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
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
new training centre.
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.
Asia
1,000
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.
Eastern Europe:
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.
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.
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
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
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.
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.
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.
Further Bonds Issued
2014 the number of career entrants at Porsche
grew by half to 450 young people.
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.
HERMA
BURGER
ENERGY
BEGENENALS
Taking stock after an intensive
BRIEM YENG
OOOOOO
61
メ
the final whistle.
Lorz stay on the ball even after
day: Lutz Meschke and Rainer
DOO
DOO
CHEF GAZI STADION AUF DER VALDAU VAL
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.
Ensingar
Promotion of Young Talents I
60
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.
ос
FELIX W
OOOO
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.
00
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.
-30% The core tasks performed by the safety experts
The occupational
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
Weissach
5,560 (+410)
72
Employees, Sport and Society
10 New Employees
*between January 1, 2015 and December 31, 2015
Bietigheim-
Bissingen
1,360 (+60)
Zuffenhausen
8,500 (+600)
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.
Porsche Catering
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.
Annual Report Porsche AG 2015
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).
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
of a sabbatical, Porsche enables its employees
to achieve a better work-life balance.
Equal Opportunities and Diversity
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.
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.
Other German Sites
300
Porsche AG set the following targets for the per-
centage of women in management: the percentage
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.
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.
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.
Employees, Sport and Society
71
of women in the first executive level should
Leipzig
3,750 (+500)
Ludwigsburg
1,780 (+280)
76
Ballet in the Park in Stuttgart
Porsche has been the main sponsor of the
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 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.
7,000
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
Annual Report Porsche AG 2015
In Germany, Porsche supported children's wards
and clinics such as the Olgäle in Stuttgart,
as well as foundations and associations such
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.
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.
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).
Employees, Sport and Society
77
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.
Work-life Balance
75
visitors enjoyed the
Leipzig Gewandhaus
Orchestra in the
2015 season.
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
visitors saw world-
class matches
at the Porsche Tennis
Grand Prix 2015.
Employees, Sport and Society
2,500
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.
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.
R. L. With this commitment, you create a strong sense
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
children play at the
Porsche Basketball
OOOOOO OO
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.
70
о
Service mechatronics
engineer Jayson Supan
in the Porsche workshop
in Dubai. The Philippine
citizen has qualified as
a diagnostic specialist.
What happens when professionals in After Sales from Porsche, a Porsche importer
and a Catholic educational institute come together in Manila? The result is educational
qualifications and more opportunities for young people, in Dubai, for example.
63
Annual Report Porsche AG - 2015
64
J
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
living in poverty by making it possible
for them to get an education.
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-
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.
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.
R
AUTOMOTIVE
TECHNOLOGY
Promotion of Young Talents II
DOVAVIOS
E
BOSTO
CHAMPIO
Lessons in the Don
Bosco Technical
Institute in the heart
of the million-strong
metropolis Manila.
1,500
square metres are occupied by the PTRCA
in the 6,000 m² new building
of the Don Bosco Technical Institute.
120
Philippine citizens per year group will
receive training as automotive
mechatronics engineers as of 2016.
145
apprentices will start their training to
become automotive mechatronic engineers
or bodywork engineers in 2017.
00
Porsche Training and Recruitment Center Asia
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Annual Report Porsche AG - 2015
OOOO
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"Thank you
for this
wonderful
opportunity"
Jayson Supan
62
Promotion of Young Talents II
00
P
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*
M
AN
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၁ဝဝဝဝဝ
C
A
. 6,000 m²
PTRCA Facts
Training Occupation..
Founded in.
automotive mechatronics engineer
2008
Apprenticeships Completed.... 250 since 2009
Apprentices/year..
Planned New Construction.
32
120 from 2016
145 from 2017
MANILA
R 2.0
A
In training, theory
and practice are
taught closely
interlinked from the
very beginning.
Number of Employees
of the Porsche AG Group
22,401
19,456
17,502
15,307
24,481
2011 2012 2013 2014 2015
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.
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.
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
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.
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.
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.
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.
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.
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
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.
with leading global business schools and focuses
on developing international leadership skills in
top management.
Employees
Employees,
Sport
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.
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
Philippine average. "I looked at my
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.
and Society
250
Private
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.
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!"
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.
"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
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
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.
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.
AI
HEAT
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.
R. L. Do these young people take it as an opportunity?
58
With "Turbo for talented athletes"
Lutz Meschke and Rainer Lorz
keep the juniors of Stuttgarter
Kickers on the ball - and create
Annual Report - Porsche AG - 2015
"The Stuttgarter
Kickers or
Rasenball Leipzig
are not about
the Champions
League for us
but about social
commitment."
Lutz Meschke
L. M.- Promoting young people is a major priority in
a positive snowball effect.
laps, Earl Bamber
276 rounds.
Porsche uses a
longer neutralisation
into the pits after
Hülkenberg again.
Hülkenberg is called
19 back to Nico
hands start number
Clever manoeuvring
at dawn: after 249
90
06:15
L
phase for a full
service, changes
Annual Report - Porsche AG - 2015
89
Эфемер
Safety
the engine cover,
FARD
the track as front
runner.
DMGRI
AOPANT
DMG MORI
ONG NO
19
19
START NUMBER
the rear wing, the
tyres - and the
driver again: Nick
Tandy gets back on
Earl Bamber - 24, New Zealand
Nick Tandy - 30, United Kingdom
Nico Hülkenberg - 27, Germany
DMC
DM
MG MORI
C
DMG MORI
OMG MORI
SHOP
DRIVERS
WEC - Le Mans
WEC 2h LEMANS P1
Annual Report Porsche AG 2015
midnight. Bamber:
Earl Bamber after 91 laps,
moves into first place at
919 Hybrid again from
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
"The race is very fast."
88
17
DRIVERS
SCHLEPTLES
FAG
17
CHO
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
DMG MORI
vodale
Marc Lieb - 34, Germany
Romain Dumas - 37, France
Neel Jani - 31, Switzerland
Арме
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.
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.
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.
"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."
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
> 500 hp
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.
Performance and Efficiency:
> 400 hp
2012
1.31
1.58
2011
1.05
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
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.
a V4-cylinder engine with direct
fuel injection, turbo charger and
exhaust energy recovery system
26
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.
Mobil
The final word: he should wait for Brendon Hartley
Hülkenberg drives to victory with aplomb.
Head of LMP1 Fritz Enzinger has tears in his eyes.
Emotional
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
85
DRIVERS
Tobil
in second place for the winning photo
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."
15:00 Finishing Line
WEC Le Mans
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
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.
Overwhelming victory with the most complex
car, with the most complicated rules: with the
LMP1, Porsche demonstrates its engineering
supremacy in racing.
Electrifying
Strategy
92
Annual Report Porsche AG 2015
91
10
.PORS
PRS
LE MA
24
MG MORI
GMIP
CHOA
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.
DMG MOR
2-h LE MANS
KFAG
17
DRIVERS
Nico Hülkenberg - 27, Germany
Earl Bamber - 24, New Zealand
Nick Tandy - 30, United Kingdom
START NUMBER
19
DRIVERS
Marc Lieb 34, Germany
Romain Dumas - 37, France
Neel Jani -31, Switzerland
START NUMBER
18
WEC
World
Endurance
Championship
2015
1. 12/04/2015 - 6 h of Silverstone
2. 02/05/2015 -6 h of Spa-Francorchamps
3. 13/06/2015 - 24 h of Le Mans
START NUMBER
4. 30/08/2015 6 h of Nürburgring
Brendon Hartley - 25, New Zealand
Mark Webber - 38, Australia
DRIVERS
20
G5
15
17th Overall Victory for Porsche in Le Mans
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.
79
Annual Report Porsche AG - 2015
24 h
Saturday Sunday
13th
June
2015
-
14th
June
2015
Le Mans
Timo Bernhard - 33, Germany
CHOP
5. 19/09/2015 - 6 h of Austin
7. 01/11/2015 - 6 h of Shanghai
Sport C
17
15:00
Start
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."
Bed
CHOED
From left to right:
Andreas Seidl,
Porsche Team Principal,
Fritz Enzinger,
Head of LMP1,
Alexander Hitzinger,
Technical Director LMP1.
24h
LE MANS
SC
PA
DMG MORI
CHOPO
82
6. 11/10/2015 - 6 h of Fuji
Annual Report Porsche AG - 2015
DMG MORI
8. 21/11/2015 - 6 h of Bahrain
80
WEC - Le Mans
PO
2015
MARKEN-WELTMEISTER
FIA WEC MANUFACTURERS
CHAMPION
A
DMG MORI
M
WOD
24h
LE MANS
vodafone
CH
19
エリ
MMCMORI
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."
Front Runner
16:08
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
MICHELIN
bill
Pat
MICHELIN
P1
SCHAEFFLER
1.95
WEC
CHOPARD
Mobill
PORSCHE
INTELLIGENT
PERFORMANCE
Mobil
adidas
PORSCHE HY
DMG MORI
CHOPARD
CHOPARD
WEC - Le Mans
84
Annual Report - Porsche AG 2015
uvex
MG MORI
CHORA
GM
SILVERSTONE
SPA-FRANCORCHAMPS
LE MANS
NÜRBURGRING
AUSTIN
FUJI
SHANGHAI
BAHRAIN
Stroke of
Genius in
Eight
Acts
17
Mob-
DMG MORI
Nick
OR
INVI
FOR
EMORI
WEC Le Mans
WEC
MORI
WEC
MGMORI
Timo
24
MOTORSPORT
Oved
DAG MORI
WEC
MORI
vo
WEC
World Endurance Manufacturers' Champion
World 
Endurance Drivers' Champion
LMP1
ORKSHE
2.15
WEC - Le Mans
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).
6.5
10.3
370
272
911 Carrera 4 Cabriolet PDK
F
206
8.9
6.9
12.4
370
272
911 Carrera 4 Cabriolet
E
180
7.9
7.9
182
911 Carrera 4S Cabriolet
Annual Report Porsche AG 2015
184
8.0
6.7
10.4
420
309
911 Carrera 4S Cabriolet PDK
F
208
9.0
6.8
12.6
420
309
D
E
6.6
420
8.7
6.7
12.2
370
272
911 Carrera 4
D
178
7.8
6.5
10.2
420
309
911 Carrera S Cabriolet PDK
F
201
10.3
F
2013 2014 2015
309
911 Carrera 4S PDK
F
204
8.9
6.8
12.4
420
309
E
177
7.7
6.3
10.1
370
911 Carrera 4 PDK
911 Targa 4
272
370
427
911 Turbo S Cabriolet
F
216
9.3
7.6
12.1
540
397
911 Turbo Cabriolet
F
212
9.1
7.5
11.8
580
580
12.1
9.3
97
Research and Development
96
E-D
215-207"
9.2-8.8"
7.8-7.4"
11.8-11.4"
360
265
"Versatility depending on the tyre set used
Macan GTS
911 Targa 4S PDK
F
216
7.6
427
911 Turbo S
F
309
911 Targa 4S
D
182
7.9
6.5
10.3
370
272
911 Targa 4 PDK
F
206
8.9
6.9
12.4
420
12.6
6.8
9.0
212
9.1
7.5
11.8
540
397
911 Turbo
202
D
8.0
6.7
10.4
420
309
F
208
184
8.8
272
12.3
7.4
6.0
9.9
300
220
Class
(Germany)
Efficiency
78
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)
6.7
911 Carrera 4S
E
300
9.5
350
257
F
184
8.1
6.5
10.7
350
257
D
158
6.9
5.7
9.0
220
6.0
911 GT3 RS
Boxster Spyder
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.
The 911 Turbo S Coupé accelerates to 100 km/h
Annual Report Porsche AG 2015
95
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.
OMG MORI
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 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
Cayman GT4
600 hp
engine with PDK transmission in the 718 Boxster S 7.3 litres
718 Boxster S PDK
718 Boxster PDK
718 Boxster S
718 Boxster
Model
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
or 440 kW is the
system performance
of the Mission E
concept study.
7.3
168
F
E
174
7.7
6.4
10.1
420
309
911 Carrera S PDK
F
199
8.7
6.6
12.2
420
309
911 Carrera Cabriolet
911 Carrera S
272
167
420
309
911 Carrera S Cabriolet
D
172
7.5
6.2
9.9
370
272
911 Carrera Cabriolet PDK
F
195
8.5
6.5
370
D
11.9
7.4
G
238
10.3
7.8
14.8
385
G
230
9.9
7.5
14.2
375
276
88 རྨི་རྨི &
169
368
500
283
8.9
6.0
19.2
9.9
370
272
911 Carrera PDK
190
8.3
6.3
F
11.7
370
272
911 Carrera
G
296
12.7
112
911 - Mission E
Annual Report Porsche AG - 2015
113
Mission e
Mission &
911 Mission E
114
Annual Report Porsche AG 2015
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-
911 Mission E
110
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.
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."
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.
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.
115
Zuffenhausen
111
Annual Report Porsche AG - 2015
116
Procurement
in
117
Sales, Production and Procurement
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.
In the U.S., premier consumer advice magazine
Kelley Blue Book presented the Porsche brand
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".
is a well-earned
description of the
Porsche 911 and the
911 Cabrio, with which
Porsche masterfully
topped the sports car and
convertible categories.
Best Cars
2015
8
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.
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.
Many Repeat Loyal Customers
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.
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.
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.
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
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.
Professional Service
Sales
Sales,
Production
and
Made
Emotion
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.
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.
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
Chassis
3
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."
Every new 911 generation
Emissions
Efficiency
and
2
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.
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.
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."
The newly developed boxer
power unit in the 911 Carrera and
Turbo
Engine
1
4
Driving
Performance
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
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."
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
The
Driving
Experience
5
"sport response button" conditions the
powertrain for 20 seconds to achieve
best possible acceleration, for example
when overtaking.
Another.
One
911
Complement
At Porsche
Exclusive.
Mutually
Are Not
Efficiency
and
High Power
They
Annual Report Porsche AG - 2015
103
S.GO 4042
20
August Achleitner
Product Director
911
Annual Report Porsche AG - 2015
99
Mission E
The Diamond
911
Way
the
Pointing
911 - Mission E
98
Annual Report Porsche AG 2015
4
to
6
Everyday
Usability
Precious
That
911 Mission E
Annual Report Porsche AG - 2015
101
911 Mission E
100
S GO 4042
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.
Stone
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."
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 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.
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.
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.
T.
Style.
Radiates
The best ever 911 - a promise that August
Achleitner would sign in blood. "This car raises
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.
102
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.
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.
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.
in the car with a charging time of less
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
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.
Outstanding
Everyday
Usability
2
3
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.
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
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
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."
The Sportiest
Electric Drive
1
Mission E
Annual Report Porsche AG 2015
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.
109
"The Mission E embodies the
Porsche vision of the sports car
The
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.
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.
These are assigned to the driver-
relevant functional topics Connected
Car, Performance, Drive, Energy and
Sport Chrono.
the Present.
into
Is Brought
The Future
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.
Concept.
and
Its Drive
Both with
Limits.
Technological
Pushes Out
Mission E
Its Handling
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.
The Vision of
the Sports Car
of Tomorrow
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.
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.
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."
Brand.
Porsche
with the
Synonymous
911
Annual Report Porsche AG 2015
105
911 Mission E
104
"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.
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 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 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
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
Is
911 Mission E
Mobility.
a
of
Age
the
Entering
Mission E
The Promise
New
Product Director
911 Mission E
108
Annual Report Porsche AG 2015
107
Stefan Weckbach
SOGO 4042
earnings
reserves
Retained
Capital
Subscribed
capital
Financial Data
132
As of December 31, 2015
Profit transfer and dividends
Profit after tax
Total comprehensive income
Other comprehensive income
As of December 31, 2014
Taxes recognized in other comprehensive income
Financial instruments pursuant to IAS 39
As of January 1, 2015
Revaluations from pension plans
Effects of currency translation
Capital contribution
Accumulated
296
profit
9,039
Profit transfer
9,039
-18
103
254
-265
2,406
6,321
Other comprehensive income
45
Non-controlling Group equity
non-controlling
interests
Equity before
Equity-
accounted
investments
Currency
translation
Cash flow
hedges
Securities
marked to
market
Revaluations
from pension
plans
interests
Capital contribution
- 1,414
Profit after tax
37
886
- 47
39
- 978
- 838
-638
-506
2,485
-2,228
2,473
2,536
-1,232
829
707
- 2,248
- 2,119
-652
-2,343
1,560
2,485
1,560
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 January 1, 2014
million euro
of Porsche AG for the period January 1 to December 31, 2015
Consolidated Statement of Changes in Equity
Annual Report Porsche AG 2015
131
- 3,267
- 2,566
- 5,353
-5,317
2,086
2,752
526
267
Total comprehensive income
103
-652
- 307
-652
2,334
125
- 307
0
146
130
0
-65
211
-437
211
125
125
125
9,599
9,596
85
- 336
0
211
-437
-437
45
- 1,905
-1,903
- 1,903
707
707
707
2,299
2,298
125
-268
146
2,334
2,335
2,334
-36
-36
65
65
0
103
-723
7,150
2,199
2,201
2,199
2,199
466
-1,241
- 1,241
103
-632
- 458
- 254
466
268
4
194
-1,158
- 1,158
- 900
- 258
-458
- 254
632
103
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
3,375
261
Change in other financial liabilities
- 4
2,401
2,796
Retained earnings
Additions to capitalised development costs
7,150
7,857
Capital reserves
and property, plant and equipment
Change in equity investments
45
Subscribed capital
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
45
39
Equity before non-controlling interests
9,596
Financial liabilities
684
749
Deferred tax liabilities
811
772
Other provisions
2,361
10,698
2,361
Change in loans
9,599
10,700
Equity
Cash received from disposal of intangible assets and property, plant and equipment
Change in investments in securities
3
2
Non-controlling interests
Provisions for pensions and similar obligations
26,060
29,143
6,279
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
522
Depreciation and amortization
21,548
Non-current assets
Income taxes paid
562
727
7,857
16
Profit before tax
19,781
Other non-cash expense/income
Financial services receivables
598
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
329
Other receivables
958
1,000
Other financial assets
Change in inventories
556
2,549
3,469
Other financial liabilities
776
-220
254
312
1
3
-281
5
1,878
-460
2,124
- 1,148
3,060
3,382
1,570
1,560
FY 2014
FY 2015
Net liquidity
-784
-542
-586
602
170
77
-50
-26
- 1,067
- 1,039
- 1,047
- 1,388
3,179
3,843
-95
- 119
-775
-827
195
63
164
208
608
Total third-party borrowings
14
Gross liquidity
Cash and cash equivalents at the end of the period
1,460
Effect of exchange rate changes on cash and cash equivalents
80
63
Other provisions
Provisions for taxes
Cash flow from financing activities
Proceeds from issuance of bonds
Repayment of bonds
1,337
Profit transfer and dividends
Cash flow from investing activities
7,950
7,472
244
265
Non-current liabilities
Other liabilities
381
Capital contributions
Net change in cash and cash equivalents
Financial liabilities
2,768
26,060
29,143
8,511
10,971
486
489
Current liabilities
Tax payables
810
850
Other liabilities
2,058
3,127
Other financial liabilities
1,856
2,214
Trade payables
Cash and cash equivalents at the end of the period
1,884
Securities, loans and time deposits
3,806
245
0
12.6
420
309
911 Carrera 4S Cabriolet
D
182
7.9
6.5
6.8
10.3
272
911 Carrera 4 Cabriolet PDK
(Germany)
Efficiency
Class
CO₂
CO₂
Consumption Consumption Emissions
(kWh/
Combined Combined
100 km)
(l/100 km) (g/km)
10.5
7.9
370
15.1
9.0
F
E
184
8.0
6.7
10.4
420
309
911 Carrera 4S Cabriolet PDK
208
3.1
416
306
Panamera S E-Hybrid
3.4
20.8
416
306
Cayenne S E-Hybrid
16.2
570
419
Panamera Turbo S Executive
Cayman S
E
245
10.5
7.9
15.1
520
382
239
Panamera Turbo Executive
183
7.9
6.2
10.9
275
202
Cayman PDK
F
F
325
12.7
7.1
F
190
8.2
6.3
11.4
325
239
Cayman S PDK
F
242
10.4
7.8
14.9
570
419
Panamera Turbo S
G
211
9.0
911 Targa 4
272
370
12.4
9.1
7.5
11.8
580
427
F
212
9.1
212
7.5
540
397
D
184
8.0
6.7
10.4
420
11.8
F
397
540
8
E
137
136 Further Information
3) Suspended in GER/EU
"Sold out
2 Overall performance
F
216
9.3
7.6
12.1
580
427
"Versatility depending on the tyre set used
F
216
9.3
7.6
12.1
309
242
911 Turbo S Cabriolet
911 Turbo S
652
918 Spyder with Weissach Package"
A+
72
A+
71
A+
79
887
22
12.7
887
652
918 Spyder"
F
206
8.9
6.9
3.1
12.7
3.0
70
911 Turbo
911 Targa 4S PDK
F
208
9.0
6.8
12.6
420
309
911 Targa 4S
D
182
7.9
6.5
10.3
370
272
911 Targa 4 PDK
A+
911 Turbo Cabriolet
- 577
10.4
14.9
CO₂
(l/100 km)
Fuel
CO₂
Consumption Consumption Consumption Emissions
Extra-urban Combined Combined
(l/100 km)
(g/km)
Fuel
Urban
(l/100 km)
Fuel
Output
(hp)
Output
(kW)
Efficiency
Class
(Germany)
Model
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
Emission and Consumption Data
Axel Weyland * Head of Drivetrain Division at Porsche Engineering Services GmbH
Model
(kW)
257
718 Boxster S PDK
10.7
350
257
718 Boxster S
9.0
300
Output
220
300
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)
9.9
Jordana Vogiatzi * Press officer IG Metall Administrative Office Stuttgart
Vice president of Human Resources, Management and Production
Hansjörg Schmierer * Manager responsible for members and finances of the IG Metall Trade Union, Stuttgart
Peter Schulz✶ Diplom-Ingenieur (FH)
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
Hans Dieter Pötsch Diplom-Wirtschaftsingenieur
Dr. Wolfgang Porsche Diplomkaufmann
The Supervisory Board
Annual Report Porsche AG 2015
133
10,700
10,698
0
210
- 643
of the Dr. Ing. h.c. F. Porsche AG
Chairman of the Board of Management of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Matthias Müller Chairman of the Board of Management of Volkswagen AG
(Member of the Supervisory Board since 12 December 2015)
Prof. Dr. Dr. h.c. mult. Martin Winterkorn Chairman of the Board of Management of Volkswagen AG
(until 6 November 2015)
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
Wolfgang von Dühren * Head of Sales Planning
Dr. Hans Peter Schützinger Member of the Board of Management of Porsche Holding GmbH
(Member of the Supervisory Board since 29 February 2016)
(until 30 November 2015)
Human Resources and Organisation
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
350
9.5
「g||」2
7.4
12.5
420
309
Panamera 4S Executive
G
230
9.9
7.5
7.4
14.2
276
Boxster Spyder
E
211
9.1
7.3
12.4
420
375
9.2
213
D
520
382
Panamera Turbo
G
195
8.4
6.4
11.8
275
202
Cayman
F
239
10.3
7.5
15.2
440
324
Panamera GTS
309
7.8
Panamera 4S
207
6.9
11.4
310
228
Panamera
D
158
6.9
8.5
B
6.4
5.6
7.7
300
221
Panamera Diesel 30
E
168
169
199
D
8.1
8.9
7.1
12.1
420
309
Panamera S
E
167
7.3
E
206
8.8
7.2
11.6
310
228
Panamera 4
F
184
E
Deferred tax assets
1,856
Cash and cash equivalents at the beginning of the period
911 Carrera Cabriolet
10.0
385
283
Cayenne S Diesel 3)
E
174
7.7
6.4
10.1
420
309
911 Carrera S PDK
10.3-10.1"
385
283
Cayenne S Diesel
F
199
8.7
6.6
272
370
11.9
6.5
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
Cayenne Turbo
D
172
12.2
7.5
9.9
370
272
911 Carrera Cabriolet PDK
440
324
Cayenne GTS
F
195
8.5
6.2
420
309
13.0-12.4"
911 Carrera PDK
911 Carrera
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"
911 Carrera S
400
7.8-7.4"
360 11.8-11.4"
265
7.6-7.3"
5.9-5.7"
6.9-6.7"
258
190
11.6-11.3"
340
250
294
179-173"
229-223"
215-209"
272
11.7
420
309
Cayenne S
D
169
7.4
6.0
9.9
370
272
370
7.5
262
193
300
220
Cayenne Diesel
Cayenne 3
F
190
8.3
6.3
12.3
7.8-7.6"
B
E-D
C
6.9
12.4
370
272
911 Carrera 4 Cabriolet
E
180
7.9
6.6
10.3
8.9
420
911 Carrera 4S PDK
Fuel
Power
Output
(hp) 2
(kW) 2)
Output
Model
F
8.9
6.8
309
12.4
206
2,509
346
1
329
Other receivables
4
958
3
1,000
Other financial assets
2
F
556
598
Financial services receivables
2
522
2
486
Trade receivables
8
2,157
9
2
G
420
911 Carrera 4S
267
11.5
8.9
15.9
570
419
Cayenne Turbo S
F
202
8.8
F
6.7
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
12.3
309
911 Carrera S Cabriolet PDK
420
Plug-in Hybrid
E
177
7.7
6.3
10.1
370
272
911 Carrera 4 PDK
F
309
201
6.7
12.2
370
272
911 Carrera 4
D
178
7.8
6.5
10.2
8.7
296
12.7
8.9
Net Assets
of Operations
and Results
Financial Positions
Net Assets,
Financial
Analysis
21,533
2012 2013 2014 2015
17,205
2011
As of December 31, 2015, the total assets of the Porsche AG Group stood
10,928
in million euro
Sales Revenue
Annual Report - Porsche AG - 2015
121
Sales, Production and Procurement
120
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.
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.
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.
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.
13,865 14,326
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.
at 29,143 million euro, 12 percent higher than on the prior-year reporting
date.
74 percent (prior year: 76 percent).
4,580
11
2,953
11
3,286
Equity-accounted investments
Property, plant and equipment
Intangible assets
Assets
%
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
Dec. 31, 2014
Dec. 31, 2015
million euro
of the Porsche AG Group
Net Assets
Annual Report - Porsche AG - 2015
123
of currency effects relating to the derivative
financial instruments.
Non-current other financial assets increased
by 137 million euro, primarily as a result
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.
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.
%
16
Stable Supply Situation for Procured
Components
Ensuring Product Quality
Innovative Ideas Implemented
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.
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 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.
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.
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
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.
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.
2011 2012 2013 2014 2015
234,497
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.
151,999
203,097
127,793
Produced
in units
Volume of Vehicles
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
Changes to the Executive Board
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.
Production
Annual Report Porsche AG - 2015
Tax receivables
165,808
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.
400
700,000,000 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).
In 2015, Porsche AG's cost of materials came
to 3,948 million euro (financial year 2014:
3,608 million euro).
various cost-focused and product workshops.
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
Procurement of Production Materials
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.
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.
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.
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.
Procurement
employees have been
working in the
new engine plant
in Zuffenhausen
since June 2016.
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
New Toolmaking Division
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.
Logistical Backbone in Sachsenheim
Annual Report - Porsche AG - 2015
119
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.
will be invested by
Porsche in the Mission E
project in Zuffenhausen
alone.
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.
1
4,087
332
10.3
7.8
14.8
385
283
Cayman GT4
F
190
8.2
6.3
238
11.4
250
Cayman GTS PDK
E
245
10.5
7.9
15.1
570
419
Panamera Exclusive Series
340
G
G
Macan S Diesel
19.2
500
368
Macan Turbo
G
289
12.4
8.9
18.9
475
Macan S
350
G
308
13.3
9.3
20.1
500
368
911 GT3 RS
911 GT3
911 R
Macan GTS
16
211
7.1
8,368
29
8,505
Other financial assets
5
1,140
5
1,289
Financial services receivables
9
32
2,294
2,761
Leased assets
0
23
0
50
Other equity investments
1
334
1
10
9.0
Other receivables
0
12.7
340
250
Cayman GTS
Inventories
76
19,781
74
21,548
Non-current assets
10
2
2
727
0
16
0
8
Deferred tax assets.
Tax receivables
0
4
562
Tax receivables
204
0
895
Fair value changes recognized in other comprehensive income
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
that will not be reclassified to profit or loss, net of tax
Share of other comprehensive income of equity-accounted investments
Transferred to profit or loss
-458
Pension plan remeasurements recognized in other comprehensive income, net of tax
-652
194
-65
211
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
2,201
2,335
FY 2014
FY 2015
146
Profit after tax
Cash flow hedges, before tax
Cash flow hedges, net of tax
Transferred to profit or loss
Fair value changes recognized in other comprehensive income
Available-for-sale financial assets
3,060
3,382
341
- 22
545
116
-203
Deferred taxes relating to cash flow hedges
142
4
2,719
3,404
-450
- 1,561
1,286
-789
-908
- 1,257
- 1,505
-1
Available-for-sale financial assets, before tax
million euro
Consolidated Statement of Comprehensive Income
Gross profit
Cost of sales
Sales revenue
million euro
of Porsche AG for the period January 1 to December 31, 2015
Consolidated Income Statement
Porsche AG Without the Notes
Financial Statements of
Summary of the Consolidated
Financial
Data
Distribution expenses
Annual Report - Porsche AG - 2015
Financial Analysis
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).
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.
13
2,201
11
2,335
an increase of 685 million euro in comparison
with the previous year.
Operating profit amounted to 3,404 million euro,
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.
127
of Porsche AG for the period January 1 to December 31, 2015
Administrative expenses
Other operating expenses
4,320
145
17,205
FY 2014
6,092
- 15,441
21,533
FY 2015
Financial Data
128
Other operating income
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
Profit after tax
Deferred
Current
Income tax income/expense
Profit before tax
Financial result
Other financial result
Finance costs
Share of profits and losses of equity-accounted investments
Operating profit
thereof profit attributable to shareholders.
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.
Deferred taxes relating to available-for-sale financial assets
Available-for-sale financial assets, net of tax
18
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
Intangible assets
129
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
2
466
Property, plant and equipment
Leased assets
2,953
4
10
Other receivables
8,368
8,505
Other financial assets
million euro
1,140
1,289
Financial services receivables
3,286
23
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
50
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
65
-101
125
0
103
125
- 458
146
0
- 1,230
- 1,903
2
103
1
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
2,199
1,707
125
- 1,429
- 783
- 182
0
- 254
0
4
0
-258
0
-271
103
0
0
-632
- 307
268
130
-900
-437
129
992
- 1,029
13
Profit after tax
- 12,885
Other operating income
Financial liabilities
5
1,337
5
1,460
0
80
0
63
Other provisions
Provisions for taxes
30
7,950
26
7,472
1
244
1
265
Non-current liabilities
Other operating expenses
Operating profit
Financial result
2,768
9
1,884
8
37
10,971
2
486
1
489
Current liabilities
Tax payables
3
810
1
3
Other liabilities
8
2,058
11
3,127
Other financial liabilities
7
8
2,214
Trade payables
850
381
3
776
Equity and Liabilities
100
26,060
100
29,143
24
6,279
26
7,595
Current assets
Equity
6
9
2,485
Cash and cash equivalents
0
39
0
43
Securities
1
141
1,560
8,511
10,700
9,599
Other financial liabilities
13
3,469
9
2,549
Financial liabilities
3
684
2
749
37
Deferred tax liabilities
811
3
772
Other provisions
9
2,361
8
2,361
Provisions for pensions and similar obligations
37
3
33
Other liabilities
100
-5
-789
-4
-908
-7
-1,257
-7
- 1,505
25
4,320
1,286
28
-75
- 12,885
-72
- 15,441
100
17,205
100
21,533
%
Dec. 31, 2014
6,092
%
6
6
-5
- 859
29,143
- 1,047
Income tax income/expense
18
3,060
16
3,382
Profit before tax
895
2
0
-22
16
2,719
16
3,404
-3
-450
-7
- 1,561
341
Dec. 31, 2015
-5
Sales revenue
Annual Report - Porsche AG 2015
125
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.
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.
Deferred tax liabilities amounted to 749 million
euro compared with 684 million euro in the
prior year.
euro.
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
Non-current other financial liabilities recorded
growth of 395 million euro. The increase mainly
relates to marking derivative financial instru-
ments to market.
Provisions for pensions and similar obligations
remained unchanged as against the prior year,
at 2,361 million euro.
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.
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
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
Cash and cash equivalents increased significantly
year on year, climbing by 925 million euro to
2,485 million euro.
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.
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.
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.
Deferred tax assets amounted to 727 million euro
compared with 562 million euro in the prior year.
Financial Analysis
124
26,060
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
in the cash flow hedge reserve in the amount of
307 million euro after tax represented reductions
in equity.
Financial Position
100
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.
of the Porsche AG Group
million euro
Results of Operations
The average number of employees during the
year rose by 2,238 to 23,541.
The personnel expenses contained across all
functions of the Porsche AG Group increased
from 2,165 million euro to 2,605 million euro.
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 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).
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
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).
Results of Operations
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.
3,843
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.
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.
2013 2014 2015
195 million euro as at December 31, 2014 to
1,456 million euro as at December 31, 2015.
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
from current
business activities
in million euro
3,179
2,917
Cash Flow
22,383
15,055
units
Panamera
units
81,916
66,005
79,700
Cayenne
Boxster/Cayman
59,363
86,016
units
Macan
28,996
23,211
21,978
units
35
545
312
24,798
Financials
number
24,560
million euro
29,751
26,060
29,143
Capital expenditure2
Fixed assets
Equity
Total assets
14,326
Employees"
17,205
million euro
Sales revenue
1,865
2,165
2,605
million euro
Personnel expenses
19,456
22,401
24,481
21,533
31,590
Macan
units
301
566
units
918 Spyder
30,205
161,982
30,510
189,849
31,350
units
911
225,121
units
Deliveries
2013
2014
2015
of the Porsche AG Group
Key Performance Indicators
Annual Report - Porsche AG - 2015
10,700
Boxster/Cayman
units
22,663
23,597
918 Spyder
units
911
165,808
203,097
234,497
units
Production
22,032
24,864
31,373
375
17,207
Panamera
84,041
65,941
73,119
units
Cayenne
44,636
80,216
units
25,704
units
9,599
million euro
million euro
Brazil
732
Latin America
3,208
USA
51,756
Canada
6,413
* between January 1, 2015 and December 31, 2015
225,121 (+35,272)
total deliveries
+19%
of vehicles worldwide*
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,
United Kingdom
12,238
Benelux
4,996
Northern Europe
2,187
Germany
28,953
9,039
Phone: +49 711 911-0
Germany
D-70435 Stuttgart
Porscheplatz 1
Dr. Ing. h.c. F. Porsche AG
Australia/New Zealand
4,519
Japan
6,527
South Korea
3,612
Asia-Pacific
5,583
Vice President Communications
8,520
China
58,009
Russia
5,290
4,972
Eastern Europe
4,807
2,595
Italy
Spain/Portugal
Austria
1,367
France
5,015
Middle East and Africa
Dr. Josef Arweck,
Switzerland
3,822
Phone: +49 711 911-0
3,179
3,843
million euro
Cash flow from operating activities
1,415
1,878
2,124
million euro
Depreciation and amortisation
10,405
12,095
million euro
Cost of materials
2,236
2,114
2,427
million euro
8,539
www.porsche.com
11,009
9,691
2,917
Operating result (EBIT)
8,282
3,404
D-70435 Stuttgart
Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1
million euro
Germany
Managers and contact persons
Published by
Imprint
Further Information
2 Relates to investments in intangible assets and property, plant and equipment.
"As of December 31.
1,939
2,201
138
2,335
million euro
Profit after tax
2,719
2,784
3,060
3,382
million euro
Profit before tax
2,579
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
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
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 Lab opened in Berlin
11
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.
Digital GmbH: Porsche commences digital
innovation offensive
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.
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.
Establishment of the Porsche sustainability
advisory committee
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.
New Experience Centre in Los Angeles
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.
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.
Responsibility for the Stuttgart region
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.
Bonded loan placed
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.
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
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.
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
Performance Important events
PORSCHE
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).
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.
Outlook
Business performance
PORSCHE
STUTTGART
FL
FOLLS
IMPORTANT EVENTS
Course set for first electric Porsche vehicle
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.
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.
10
10
Dialogue and transparency
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.
DMG
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.
PORSCHE
Strategie 2025
Strategy 2025
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
With its new cor-
porate strategy,
Porsche is setting
itself ambitious
targets to be
achieved by 2025.
The future of
the sportscar -
this is the theme
of Strategy 2025.
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.
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.
12
Germany 0.2%
Western Europe 0%
13
by one fifth to 2.0 million - the fourth regressive year in
succession.
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.
Record year with new product highlights
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.
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.
+6%
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.
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.
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
Economic growth
Percentage change in GDP
China 7.7%
Global economy 2.6%
USA 2.2%
Important events
16
Performance - Important events
2013
2014
2015
2016
6.7%
2.3%
1.8%
1.7%
1.6%
17
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).
Tailor-made financial services
As partners of the retail organisation, Porsche Financial
Services (PFS) companies offer innovative, tailor-made finan-
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
AG, PFS regularly examines opportunities to expand its offer-
ing into additional growth markets.
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
brands Bentley and Lamborghini in countries and regions such
as Germany, Italy, Switzerland, France, Russia, Singapore,
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.
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 PFS companies have developed their processes and meth-
ods in each market accordingly, including in areas such as
risk management.
OUTLOOK
Further growth possible
Performance Important events
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
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
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.
Mixed picture in the automobile markets
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
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.
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.
Development forecast
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.
14
Performance Important events
15
BUSINESS PERFORMANCE
Moderate growth in the global economy
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.
7
GRI Content Index
6
Employees, Sport and Society
Employees
Sport and society
27
256 5233 312
36
43
44
52
Research and development
57
Sales, Production, Procurement
65
Sales
Production
N82
66
68
72
56000
75
76
78
80
Procurement
Financial Analysis
Net Assets
Financial Position
Results of Operations
Our way-management approaches in our spheres of activity
Financial Data
Stakeholder dialogue
Business performance
reality options
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.
SCAN
THIS CHART
Performance.
Annual and
Sustainability Report
of Porsche AG
2016
PORSCHE
Performance.
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.
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.
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 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.
You have two volumes in front of you:
"Perspective" is intended to inspire, motivate
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?
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 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.
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
can be found on the relevant pages - where
surprises await you.
Letter from the Executive Board of Porsche AG
6
Important events
9
Outlook
15
16
Sustainability strategy and sustainability management
Strategy and organisation
Performance - Letter from the Executive Board of Porsche AG
Consolidated Income Statement
Key Figures
Mural fluimer
Michael
Michael Steiner
Research and Development
daz
J
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
Алонго
Andreas Haffner
Human Resources
Dear all,
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.
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
EM
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Albrecht Reimold
Production
5
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
106
Emission and Consumption Information
108
110
Porsche AG Group - Brief Overview
About this report
Legal notice
112
85
86
90
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114
92
94
97
98
115
Letter from the Executive Board of Porsche AG
how to use the augmented
SCAN THIS CHART -
Switzerland: High proportion of Turbo and GT models
23
Sustainability strategy and sustainability management
Strategy and organisation
Stakeholder dialogue
Our way-management approaches in our spheres of activity
HE
0
PORSCHE
275/45R20
26
Sustainability spheres of activity
Business &
customers
Product
- Business & customers
responsibility
- Product responsibility
- Environment & energy
Performance Important events
In total, 6 per cent more Porsche vehicles were
delivered than in the previous year.
Deliveries of new vehicles
The Macan was the best-selling Porsche model
with an increase of 19 per cent.
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
Revenue increased by 4 per cent
over the previous year.
22
Employees &
society
222
billion euro
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
2.21
Porsche
Environment &
energy
STRATEGY AND ORGANISATION
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.
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.
28
Porsche Strategy 2025
Excellent employer
and business partner
Inspiring customers with
a unique product
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.
and brand experience
Value-generating
growth
Innovation and
sustainable
business practices
ROS > 15%
Excellent profitability:
Performance - Sustainability strategy and sustainability management
2025
Operating return on sales
Sustainability in the Porsche Strategy 2025
Performance - Sustainability strategy and sustainability management
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.
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.
Spheres of activity and general guidelines
(G4-18, G4-20, G4-21)
Porsche has defined four topic areas for structuring and
managing the company's sustainability activities:
- Employees & society
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
27
(G4-21)
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.
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.
17.4%
increased by 5 per cent.
Investment in material assets (vehicle business)
Deliveries
of new vehicles
189,849
161,982
141,075
237,778
225,121
2012
18
2013 2014 2015
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.
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.
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.
2016
+9%
for the seventh
successive year.
to customers in the
reporting year.
70,867 deliveries. At 95,642 vehicles, the Macan was the
top-selling Porsche model.
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,
North America and Europe were able to increase their
deliveries compared with the previous year.
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
This means Porsche
has surpassed
the previous year's
performance
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
South America: Stable sales
The reporting year was characterised by a stable sales situ-
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
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.
29
Despite a tense political and economic situation, Porsche
Cars Great Britain Ltd. enjoyed its best year yet with
13,288 customer deliveries.
France: Strong presence in Paris and Le Mans
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
3.88 billion euro
South Korea: Growth in the dealership network
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.
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.
Porsche
financial year 2016
in figures
Figures relate to Porsche AG Group
1.41
billion euro
Investment in material assets
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.
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.
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.
With a figure of 65,246 deliveries, China - including Hong Kong
- increased sales in the 2016 financial year by 12 per cent.
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
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.
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
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.
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.
Japan: Continual growth
Austria: Two-door models popular
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.
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.
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.
Asia
China: Number one again
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 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.
29
(G4-18, G4-19, G4-20, G4-21, G4-22, G4-24, G4-25,
G4-26, G4-27)
(G4-18, G4-20)
Management and employee training courses
Porsche information boards
Communication media for external stakeholders 2016
Annual Report 2015
Sustainability Report 2015
Porsche Internet presence (newsroom, corporate website)
Press releases and (virtual) press conferences
Activities in associations/networks and meetings with authorities
Informational events for residents
"targa" residents' journal
"Christophorus" customer magazine
Plant tours and presentations on sustainability
Significance for Stakeholders
Materiality Matrix
(G4-18, G4-19, G4-20, G4-21, G4-27)
Health and safety
Long-term economic
stability
Long-term customer relationships
Fuel consumption and
vehicle emissions
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
Suppliers'
network
"Sustainability
in supplier
relationships"
Association for
Employees' Rights
in Business and
Industry (Gesellschaft
für Arbeit-
nehmerrecht in der
Wirtschaft e. V.)
Resource consump-
Cultural
Organizations
32
Performance - Sustainability strategy and sustainability management
33
Representatives from the Volkswagen Group and the
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.
Materiality analysis
(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.
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.
Partner universities
Academia/Research
Staff development
tion during production
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.
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.
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
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
Performance Sustainability strategy and sustainability management
37
Sustainability organisation
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.
Business & customers
OUR WAY - MANAGEMENT APPROACHES IN OUR
SPHERES OF ACTIVITY
35
Energy and emissions
during production
Performance-
based
remuneration
Environmentally
compatible logistics
Responsibility in the supply chain
Equal
opportunities Work-life balance
and equal
treatment
Pollutants and waste
during production
Protecting and preserving nature and biodiversity ■
Sustainability communication
Social commitment
Corporate co-determination
Importance for the Company
Business and Customers
Product Responsibility
Environment and Energy
■Employees and Community
■Medium High
34
Performance - Sustainability strategy and sustainability management
Contributing toward regional
economic development
Schools
Compliance
Student
Initiatives
Departments and specialists
Appoint representatives to the Expert
Committee on Sustainability
Notify the Expert Committee of current issues
Provide data for the Sustainability Report
31
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.
Coordinates sustainability issues
Responsible for sustainability
reporting procedures
Establishment of the Porsche sustainability
advisory committee
- Prof. Dr Maximilian Gege, co-founder and chairman of the
German Environmental Management Association (B.A.U.M.)
- 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
(G4-19, G4-20, G4-24, G4-26, G4-27)
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
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:
the expansion of
Sustainability Office
Performance Sustainability strategy and sustainability management
A clear internal structure with defined roles and responsibili-
Social
Initiatives
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 =
I
Porsche's Executive Board
(2x annually)
Commissions
reports
Expert Committee on Sustainability
(4x annually)
Develops strategic objectives and statements
relating to sustainability
Specifies the content of sustainability reporting procedures
Chair: Sustainability Office
Representatives from all functions and
employee representatives
30
Defines
sustainability focus
the stakeholder
dialogue was made
in November in 2016
with the establish-
ment of the Porsche
sustainability
Specifies indicators and lighthouse projects
External stakeholder dialogue
Customers
Porsche
Centers
Banks
Business partners
Business &
customers
Product
responsibility
Porsche
Employees &
Porsche
Clubs
society
Industrial union of
metalworkers
(IG Metall)
Works Council
State sport
associations
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.
Employees
NGOS
Trade unions/Associations
Authorities
Environment &
energy
Federal Motor
Transport
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.
Authority
(G4-18, G4-19, G4-21, G4-24, G4-26, G4-27)
Stakeholder survey
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.
Our Stakeholders
(G4-24, G4-25, G4-26, G4-27)
The most important internal and external stakeholders of the company,
as defined on the basis of internal analyses.
advisory committee.
and town
councils at
Porsche sites
Politics
State and
federal
ministries
Südwestmetall
Municipal
German vehicle
manufacturers'
association
(VDA)
Employees have also volunteered to support refugees-
from organising clothes donations and looking after
children to arranging shared excursions.
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.
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
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.
13
Health management
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.
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.
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.
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.
6,062
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.
Employees
at locations in Germany
Zuffenhausen
9,696
Weissach
Sachsenheim
482
Bietigheim-Bissingen
4,112
Leipzig
Assistance for refugees
1,446
Ludwigsburg
2,037
A big thank-you to our employees
Other German
locations 846
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.
49
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
Work-life balance
Performance - Employees, Sport and Society
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.
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.
Co-determination
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.
Equal opportunities and diversity
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.
+70%
Within the space of just four years, Porsche has increased
the proportion of women in management by more than
70 per cent.
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.
50
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.
Porsche has been busy informing female students and young
women with work experience about their options for joining
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.
In April 2016, Porsche expanded its Girls' Day initiative,
which has been established for many years, to include
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.
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.
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.
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.
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.
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.
Semi-retirement
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.
48
Performance - Employees, Sport and Society
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.
51
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.
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.
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.
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
54
School is also ongoing, helped in no small part by a dona-
tion of ten million euros from Porsche AG.
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
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.
Education and science
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.
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
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.
Social commitment at the sites
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.
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.
It then distributes it free of charge or for a symbolic
amount to people in need.
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.
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.
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.
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.
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
Performance - Employees, Sport and Society
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.
Pilot project at the Cape of Good Hope
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.
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.
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.
Research and development
55
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
€ 180,000
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.
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.
Even more "Turbo for Talents"
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
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.
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.
The training sessions are primarily intended to promote a
love of the game, along with values such as team spirit
and fairness.
"Turbo for Talents" also applies to the partnerships with the
youth teams at German first division football club RB Leipzig,
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.
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.
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.
All of these commitments are intended to develop talent,
but above all to give young people a positive experience
SPORT AND SOCIETY
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
The Porsche Tennis Grand Prix
HE
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
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 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.
"Simply fantastic"
Careers in elite sport are often a waiting game and fre-
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.
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".
52
62
Performance - Employees, Sport and Society
53
for all partner clubs, with awards for best sporting devel-
opment, best academic achievement and outstanding
social commitment.
Skills management
800,000
Performance - Employees, Sport and Society
sustainability 2016
in figures
Figures relate to Porsche AG
and Porsche Leipzig GmbH
-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
Solar energy per year from the
photovoltaic system on the body
shop in Leipzig
kWh
20
Number of years Porsche has
held environmental management
certification
Annual savings in carbon dioxide
emissions thanks to the photovoltaic
system on the new engine plant in
Zuffenhausen
- 105t
>150,000
655
Number of apprentices
Global customer surveys per year
-8.5%
Reduction in injury rate
(compared to previous year)
5.0 mill
million euro
approx.
Total donations in 2016
-19%
(IN NEDC)
Reduced consumption in the Panamera 4 E-Hybrid
(compared with the Panamera S E-Hybrid)
43.57 milion euro
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.
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 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
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.
Product responsibility
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.
Environment & energy
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
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.
Investment in environmental
protection at the Zuffenhausen/
Weissach sites
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
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
Employees & society
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.
+13%
With 27,612 employees at the end of 2016, Porsche
has reached a new record.
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.
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
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.
Performance Sustainability strategy and sustainability management
47
40
41
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.
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.
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.
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.
Free travel with plant ID
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.
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 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.
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.
Employee development
Employee and manager development at Porsche supports
life-long learning for all groups of workers. The focus is
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.
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.
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.
Porsche Warm Up
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.
Trainee Programme
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.
Under the Porsche Strategy 2025, targeted promotion of
talent is a core element of the personnel development and
skills strategy.
Encouraging new talent at Porsche
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.
Development programmes in production
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.
Programmes at management level
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.
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 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.
46
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
Performance - Employees, Sport and Society
Employees, Sport and Society
Employees
Sport and society
EMPLOYEES
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
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.
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.
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.
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.
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
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".
Attractiveness as an employer and working
with young talent
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.
Performance - Sustainability strategy and sustainability management
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.
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.
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.
"Ferry Porsche
Prize": 234 young
people received the
coveted award, with
six also enjoying
scholarships for
a year.
Employee development
at the Porsche AG Group
17,502
19,456
27,612
24,481
22,401
2012 2013 2014 2015 2016
44
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.
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.
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.
2012 2013 2014 2015
2016
SCAN
THIS CHART
Performance - Sales, Production, Procurement
69
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.
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.
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.
68
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".
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.
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.
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.
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
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
currently preventing some 5,000 tonnes of carbon dioxide
- which is damaging to the environment - from being
generated each year.
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.
Site development in Sachsenheim
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
165,808
151,999
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
66
Performance Sales, Production, Procurement
67
PRODUCTION
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.
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.
Production volume
vehicles produced
239,618
234,497
203,097
+2%
New record: Porsche produced 239,168 vehicles
in the 2016 financial year.
Change on the Executive Board
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.
New body manufacture in Leipzig
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
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 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.
Quality at the highest level
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 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.
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.
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.
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
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.
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
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.
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.
If necessary, Porsche will also provide assistance
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.
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
of cooperation with social organisations is firmly anchored
in the corporate strategy.
Strict compliance with the sustainability requirements is
essential to the effective cooperation between Porsche and
Performance Sales, Production, Procurement
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.
73
Financial Analysis
Net Assets
Financial Position
Results of Operations
76
Dec. 31, 2016
%
Another focal point of the procurement strategy is the
increased use of sustainable materials. In 2016, Porsche
surveyed the main suppliers specifically regarding the
to identify and minimise risks, and processes for monitoring
and developing suppliers.
suppliers, an early detection system along the value chain
the high environmental and social standards among busi-
ness partners: mandatory sustainability requirements for
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.
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.
70
Performance Sales, Production, Procurement
71
n
PROCUREMENT
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.
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.
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.
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.
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.
Procurement of production material and non-produc-
tion material
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).
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).
Ensuring product quality and sustainability
in procurement
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.
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.
Sustainability in supplier relations
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.
Three cornerstones were defined in order to establish
Tracking down potential savings
Dec. 31, 2015
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.
In addition to its current models, Porsche's classic vehicles
thrill fans of the brand all over the world. Porsche Classic
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.
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.
Sivs728
00
718 Cayman impresses with striking design and
muscular appearance
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
S model provides 257 kW (350 hp) with 2.5-litre displace-
ment. Fuel consumption is between 8.1 litres and 6.9 litres
60
60
Sporty and efficient: the Macan with new drive
Joint venture planned for super-fast, high-performance
charging network
New generation of the best-selling racing car
in the world
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.
per 100 kilometres in the NEDC. The acceleration, top
speed and torque of the enclosed two-seaters are identical
to the performance figures of the new generation of
718 Boxster.
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.
The ten per cent more direct steering and half-inch wider
rear wheels result in even better stability around corners
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 new Panamera combines performance
and comfort
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.
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.
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.
Cayenne with modern infotainment
59
RESEARCH AND DEVELOPMENT
Spectacular global innovations
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.
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.
Research and development costs
in billion euro
1.31
1.58
2.21
2.15
1.95
-13%
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.
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.
The new 911 R: a streamlined and classically
designed sportscar
With its high-speed, six-cylinder naturally aspirated engine
and manual six-speed sports gearbox, the Porsche 911 R is
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.
2012 2013 2014 2015
58
2016
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
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.
Performance Research and development
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.
63
Sales, Production, Procurement
Sales
Production
Procurement
SALES
Awards and recognition from all sides
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.
1st place
Porsche also came out on top as the best brand in the USA's
"Sales Satisfaction Index" (SSI) in 2016 for the first time.
Performance Research and development
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".
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.
Professional service
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
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 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.
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
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.
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.
Tradition and innovation closely interlinked
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,
62
62
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.
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.
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.
61
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.
E-Performance: New hybrid strategy for the
Panamera 4 E-Hybrid
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.
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
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.
New Panamera versions in Los Angeles
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.
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).
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.
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.
Responsible expansion of the Porsche Development
Centre in Weissach
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
one roof.
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
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.
Research and development costs
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.
From the race track to the road - technology transfer
in motorsport
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.
%
72
12
2,361
8
Other provisions
685
2
772
3
3,965
864
10
3
2
3,669
11
2,549
9
699
2
776
3
749
3,213
Provisions for pensions and similar obligations
37
Net Assets
of the Porsche AG Group
million euro
Assets
Intangible assets
Property, plant and equipment
Equity-accounted investments
Other equity investments
Tax receivables
Deferred tax assets
Non-current assets
Inventories
Other receivables
Tax receivables
Securities
Cash and cash equivalents
Current assets
Other financial liabilities
Other liabilities
Non-current liabilities
Provisions for taxes
Other provisions
Tax payables
Current liabilities
Equity and Liabilities
Equity
11,980
37
10,700
316
1
265
1
3,127
11
Other liabilities
783
3
850
3
557
2
489
1
10.809
34
10,971
37
32,235
100
29,143
100
Performance - Financial Analysis
77
10
1,280 million euro to 11,980 million euro compared
3,337
8
9,446
29
7,472
26
77
0
63
0
1,636
5
1,460
5
Financial liabilities
1,830
6
2,768
9
Trade payables
2,589
8
2,214
Other financial liabilities
The equity of the Porsche AG group increased by
Deferred tax liabilities
Financial liabilities
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.
8,478
26
8,505
29
31
0
10
0
8
Other financial assets
Other receivables
0
3
727
2
23,592
73
21,548
74
2,536
8
879
5
1,289
4
3,286
11
5,116
16
4,580
16
333
1
332
1
54
0
Cash and cash equivalents increased significantly year on
year, climbing by 404 million euro to 2,889 million euro.
0
Leased assets
3,373
11
2,761
10
Financial services receivables
1,363
2,509
9
50
591
0
2,889
9
2,485
9
8,643
27
7,595
26
32,235
100
29,143
100
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.
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).
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.
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.
Deferred income tax assets amounted to 879 million euro
compared with 727 million euro in the prior year.
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.
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.
Trade receivables
43
0
NET ASSETS
59
2
486
2
Financial services receivables
647
598
2
Other financial assets
1,337
4
2
194
3
390
1
329
0
1
1
145
1,000
146
C
211
65
125
-307
65
-437
0
-65
-437
-437
-36
0
130
-36
707
2,334
7,857
211
-1,905
-1,903
-1,903
707
707
45
2,299
2,298
125
-307
146
2,334
2,335
2,334
211
Retained earnings
125
Other comprehensive income
Accumulated
profit
reserves
Capital
Subscribed
capital
94
As of December 31, 2016
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
3,806
Revaluations
from pension
plans
125
Securities
marked to
market
Currency
translation
9,599
9,596
125
85
-336
-723
3,375
7,150
45
equity
interests
Group
Noncontrolling
Equity before
noncontrolling
interests
Equity-accounted
investments
Cash flow
hedges
-577
Unrealized currency translation gains/losses
-643
1,076
1,076
1,076
2,575
2,575
0
-2,370
32
0
-435
2,640
2,640
0
2,640
338
-2,370
-2,371
8,933
Revaluations from pension plans
Key figures for personnel and social matters
Key figures for environment and energy
Key economic figures
Key figures
95
Performance - Financial Data
11,980
11,979
0
242
-305
0
-1,012
4,076
2,640
-65
-65
0
10,700
2
10,698
0
210
-643
0
-577
3,806
7,857
45
10,700
2
10,698
210
32
0
32
-619
32
338
0
-435
40
40
-144
0
184
482
482
482
0
-619
-619
32
Effects of currency translation
45
As of December 31, 2015
22,318
%
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
in million euros
Sales revenue
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.
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.
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.
Deferred income tax liabilities amounted to 864 million euro
compared with 749 million euro in the prior year.
Non-current other financial liabilities declined by 77 million
euro. This mainly relates to marking derivative financial
instruments to market.
100
-15,937
-71
21,533
-15,441
0
As of January 1, 2016
0
-180
16
3,404
17
3,877
-7
-1,561
-5
-1,140
6
1,286
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.
5
-4
-908
-4
-867
-7
-1,505
-8
-1,703
28
6,092
29
6,381
-72
100
1,206
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.
0
-435
146
32
125
0
32
125
32
125
119
-1,429
363
992
0
482
-144
130
338
-307
0
0
0
0
0
12 226
370
-105
0
-182
-101
65
-437
Profit before tax
146
-65
Transferred to profit or loss
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
Cash flow hedges
Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Cash flow hedges, before tax
Deferred taxes relating to cash flow hedges
Cash flow hedges, net of tax
Available-for-sale financial assets
Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Available-for-sale financial assets, before tax
Deferred taxes relating to available-for-sale financial assets
Available-for-sale financial assets, net of tax
Share of other comprehensive income of equity-accounted investments that
-435
may be reclassified subsequently to profit or loss, net of tax
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
thereof profit attributable to non-controlling interests
Performance - Financial Data
FY 2016
FY 2015
2,640
2,335
-619
211
184
Items that may be reclassified subsequently to profit or loss
-65
3,697
3,382
-22
-180
Financial result
116
-44
Other financial result
-142
-144
Finance costs
8
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
Profit before tax
Income tax income/expense
Current
3,697
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
Pension plan remeasurements recognized in other comprehensive income
Profit after tax
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
FY 2015
0
2,334
2,640
thereof profit attributable to shareholders
2,335
2,640
Profit after tax
90
17
Deferred
-1,137
-1,074
-1,047
-1,057
3,382
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
FY 2016
Administrative expenses
Other operating income
Distribution expenses
in per cent
Operating return on sales
81
Performance - Financial Analysis
Financial result
Other operating expenses
Operating profit
Other operating income
Administrative expenses
Cost of sales
Gross profit
Distribution expenses
Sales revenue
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.
15.8
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.
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.
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.
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).
RESULTS OF OPERATIONS
11
2,335
12
2,640
Profit after tax
-1,047
-5
-1,057
Income tax income/expense
16
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
17
17.4
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.
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
Consolidated Statement of Financial Position
Consolidated Statement of Comprehensive Income
Consolidated Income Statement
Financial Data
83
2015 2016
Performance - Financial Analysis
2013 2014 2015
2012
3,877
3,404
2,429
2,579
2,719
82
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.
2016
-36
-22
2,575
312
-29
-220
-595
-542
405
602
231
208
81
63
-1,171
-827
-88
-119
3,864
3,843
Cash flows from operating activities
Investments in intangible assets (excluding capitalized development costs),
and property, plant and equipment
-1,438
-1,388
Additions to capitalized development costs
-1,228
-1,039
Change in equity investments
-33
-26
Cash received from disposal of intangible assets and property, plant and equipment
314
3
-1
5
Performance - Financial Data
91
Consolidated Statement of Cash Flows
of Porsche AG for the period January 1 to December 31, 2016
million euro
Cash and cash equivalents at beginning of period
Profit before tax
Income taxes paid
Depreciation, amortization and impairment losses
Gain/loss on disposal of non-current assets
Share of profit or loss of equity-accounted investments
Other non-cash expense/income
Change in inventories
Change in receivables (excluding financial services)
88
Change in liabilities (excluding financial liabilities)
Change in other provisions
Change in leased assets
Change in financial services receivables
FY 2016
FY 2015
2,485
1,560
3,697
3,382
-1,035
-1,148
2,081
2,124
-26
Change in pension provisions
77
Change in investments in securities
-17
Cash and cash equivalents at end of period
2,834
2,485
Securities, loans and time deposits
Gross liquidity
Total third-party borrowings
Net liquidity
369
267
3,203
2,752
-5,499
-5,317
-2,296
-2,566
2,485
92
93
million euro
Consolidated Statement of Changes in Equity
of Porsche AG for the period January 1 to December 31, 2016
As of January 1, 2015
Effects of currency translation
Revaluations from pension plans
Financial instruments pursuant to IAS 39
Taxes recognized in otherm comprehensive income
Other comprehensive income
Profit after tax
Total comprehensive income
2,575
Profit transfer and dividends
Performance - Financial Data
29,143
2,834
886
-4
Change in loans and time deposits
-96
261
Cash flows from investing activities
Capital contributions
Profit transfer and dividends
Proceeds from issuance of bonds
Repayment of bonds
-2,724
-2,119
1,076
707
-1,904
Cash and cash equivalents at end of period
-1,232
2,536
-3,582
-2,343
Change in other financial liabilities
917
-506
Cash flows from financing activities
-786
-838
Effect of exchange rate changes on cash and cash equivalents
-5
39
Net change in cash and cash equivalents
354
2,707
32,235
Capital contribution
10,809
3,373
2,761
333
332
54
50
1,363
1,289
8,478
8,505
31
10
8
879
4,580
727
21,548
2,536
2,509
591
486
647
598
1,337
1,000
390
329
194
145
59
23,592
43
5,116
3,965
10,971
2,299
2,298
0
89
90
Consolidated Statement of Financial Position
of Porsche AG as of December 31, 2016
million euro
Assets
Intangible assets
Property, plant and equipment
Leased assets
Equity-accounted investments
Other equity investments
Financial services receivables
3,286
Other financial assets
Tax receivables
Deferred tax assets
Non-current assets
Inventories
Trade receivables
Financial services receivables
Other financial assets
Other receivables
Tax receivables
Securities
Cash, cash equivalents and time deposits
Current assets
Dec. 31, 2016
Dec. 31, 2015
Other receivables
2,889
Exchange differences on translating foreign operations
8,643
699
776
Other liabilities
Non-current liabilities
Provisions for taxes
Other provisions
Financial liabilities
316
265
9,446
7,472
77
63
1,636
Other financial liabilities
1,460
2,768
Trade payables
2,589
2,214
Other financial liabilities
3,337
3,127
Other liabilities
783
850
Tax payables
Current liabilities
557
2,485
1,830
2,549
489
Financial liabilities
7,595
32,235
29,143
Equity and Liabilities
Subscribed capital
Capital reserves
45
45
3,669
7,857
Retained earnings
3,001
2,796
Equity before non-controlling interests
11,979
8,933
Non-controlling interests
10,698
864
Deferred tax liabilities
772
685
Other provisions
749
3,213
Provisions for pensions and similar obligations
10,700
11,980
Equity
2
2,361
Total 21
SCAN
THIS CHART
2014³)
2015
2016
52,585
1,491,297
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.
53,530
1,504,843
1,385,573
Fuel (in litres)
Indirect energy consumption according to primary energy sources in MWh
296,873
2016
Production sites
233,523
222,573
263,855
206,859
Fresh water and waste water in m³
Other sites
63,350
59,796
56,996
"The direct energy consumption is comprised of gas, combustible gas for manufacturing processes,
heating oil, special energy products and fuel.
21 The indirect energy consumption is comprised of electrical energy and district heating.
Water consumption (drinking water)
Volume of waste water
3) The values published in the 2014 key figures update have been partially corrected.
Direct energy consumption in MWh/vehicle (Porsche production sites only)
282,369
64,603
Other sites
0.27
2015
10,650
6,515
Direct energy consumption according to primary energy sources in MWh
2016
2015
2014³)
NOX emissions
45.01
40.37
37.98
SOX emissions
0.28
0.25
0.25
Total¹)
Production sites
293,623
265,915
250,219
Weight of volatile organic compounds (VOC)
116.93
110.05
104.08
217,104
199,443
184,809
Weight of dust emissions
0.3
0.27
16,204
17,121
Indirect energy consumption in MWh/vehicle (Porsche production sites only)
2015
SCAN
THIS CHART
2014
1.12
Total¹)
43.57
100%
42.73
100%
44.30
100%
Waste disposal
4.36
1,296
10%
17%
7.70
17%
1.07
Emissions control
10.89
25%
12.82
30%
12.90
30%
Remedy costs
7.84
18%
7.26
2014¹)
1,681
15,468
2016
2015
2014¹)
11 The values published in the 2014 key figures update have been partially corrected.
100
SCAN
THIS CHART
Volume of waste in t
Total
1.04
Waste for recycling
Waste for disposal
0.96
0.98
1,957
Investments in environmental protection in euro
2016
2015
2014
668,606
594,427
645,568
588,050
577,950
515,578
2016
2015
2014
21,269
18,802
16,764
19,312
Other indirect GHG emissions (Scope 3)")
2016
89,395
2015
110,231
73,119
65,941
Panamera
Vehicles
15,240
17,207
24,864
Production
2016
2015
2014
Supplier origin 2016¹)
Suppliers of production materials
95.7%
Based in the EU
Suppliers of non-production materials
98.0%
Based in the EU
"Based on the creditor's billing address.
Total
Vehicles
239,618
911
Vehicles
31,648
918 Spyder
Vehicles
234,497
31,373
375
203,097
70,867
31,590
Vehicles
44,636
11.11
Key economic figures
The key figures concerning deliveries and production relate to the Porsche Group
(including subsidiaries).
The key figures concerning suppliers relate to Porsche AG.
Deliveries
2016
2015
2014
Total
Vehicles
237,778
225,121
911
Vehicles
918 Spyder
Vehicles
32,365
44
31,350
566
189,849
30,510
301
Boxster/Cayman
Vehicles
23,620
22,663
23,597
Macan
Vehicles
95,642
80,216
Cayenne
Expenditure for local suppliers at main business sites¹)
Proportion of allocated purchasing budget spent on local suppliers
545
Boxster Cayman
Supplier screening based on environmental criteria
Proportion of screened suppliers
100%
100%
100%
Performance - Key figures
99
Key figures for environment and energy
Emissions in t
2016
2015
20142)
Direct and indirect GHG emissions in t CO, equivalent (Scope 1 and 2)
Total
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
163,367
142,261
136,298
Production sites
129,183
110,795
104,742
Other sites
34,184
31,466
31,556
Direct GHG emissions in t CO₂ equivalent (Scope 1)
53,136
49,659
46.903
Indirect GHG emissions in t CO₂ equivalent (Scope 2)
2014
2016
99%
99%
24,882
21,978
23,211
1) Suppliers are considered to be local if they are based in the EU.
Zuffenhausen and Leipzig are considered the main business sites.
Macan
Vehicles
97,177
86,016
59,363
Cayenne
Panamera
Vehicles
71,693
79,700
92,602
66,005
14,218
15,055
22,383
Basis of consolidation
(G4-17)
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.
98
4.3%
Based outside the EU
2.0%
Based outside the EU
2016
2015
2014
98%
Vehicles
Vehicles
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.
26%
EN32
1회회회회회회회
1회회회회회회회회회회회회 회회
Changes in the scope and aspect boundaries
G4-23
Restatement of information reported previously
G4-22
115
Aspect boundaries outside the company
Aspect boundaries within the company
G4-20
Material aspects identified
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
G4-21
→ Index
EN34
7, 16, 58-62, 108-109
LA3
→ Index
LA1
18-22
Full
Full
Full
Labour practices and decent work
115
→ Index
36
Full
→ Text/Kennzahlen
41, 73, 99
Full
Screening of suppliers using environmental criteria
Negative environmental impact
→ Index/Text
Support from external charters, principles and initiatives
G4-19
G4-18
G4-17
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
EN30
→ Text
28, 36-40
→ Index
Full
G4-5
18-22
Headquarters of the company
Countries in which the company operates
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
G4-11
Workforce
G4-10
G4-9
G4-8
G4-7
G4-6
LA4
16-23, 45, 75-95, 98, 102
→ Kennzahlen
98
HR1
Human rights
→ Index/Text
→ Index
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
→ Index
Full
Full
→ Text
Full
Full
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
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
27, 30, 32, 34-35, 114
Sanctions for non-compliance with environmental laws and regulations
→ Index/Kennzahlen
Full
40, 103
Full
→ Index
Full
→ Index
32
Full
→ Index/Kennzahlen
Full
→ 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
→ Index/Kennzahlen
6, 10, 49-50, 102, 106-107
→ Index
Incidence and risk of work-related illness
Composition of management bodies and breakdown of employees by employee category
Remuneration structure and salaries
LA13
→ Index/Text
40, 43-50
LA12
→ Index
4, 10-15, 114
→ Text/Kennzahlen
40-41, 47-48, 103
Full
Employee training
LA9
→ Index/Text
36-37, 41, 72-73, 99
→ Index/Text
40, 50
Full
LA7
EN29
→ Text
6-7
Partial
Ratio of standard entry-level wage to local minimum wage
EC5
→ Index
Full
Financial assistance received from government
EC4
→ Index/Text
Full
Coverage of the defined benefit pension plan
EC3
→ Text
Partial
Financial implications and other risks and opportunities due to climate change
EC2
→ Index/Kennzahlen
23, 41, 53-55, 75-95, 103, 113
→ Index
Full
EC6
EC7
41, 67-68, 70-71, 100
Full
Energy consumption within the company
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
Proportion of senior management hired from the local community
→ Kennzahlen
Value generated and distributed
Economic
216
9.3
7.6
12.1
540
397
911 Turbo Cabriolet
79-75*
20.8-18.6*
3.4-3.3*
416
306
Cayenne S E-Hybrid
212
9.1
7.5
11.8
911 Turbo S Cabriolet
EC1
427
12.1
Online version
Printed report
"Performance"
Level of
achievement
Service
Mar 2017
Disclosures
Dr. Ing. h.c. F. Porsche AG
GRI
Materiality
GRI Content Index
Performance indicators
108
109
Performance - Further Information
*Range depending on the tyre set used
216
9.3
7.6
580
Partial
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
Energy intensity
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
Full
Waste by type and disposal method
Emissions of ozone-depleting substances
Full
→ Kennzahlen
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
Full
Significant spills
EN24
39, 101
EN5
EN20
Full
→ Index/Text
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
EN12
→ Kennzahlen
Impact of activities in protected areas
→ Index/Text
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
Full
Full
→ Index
→ Index
Financials
2,165
2,605
2,875
million euro
Personnel expenses
22,401
24,481
27,612
number
Employees¹)
Panamera
22,383
15,055
14,218
Units
66,005
Sales revenue
79,700
million euro
21,533
Capital expenditure 2)
9,691
11,009
12,841
million euro
Fixed assets
9,599
10,700
11,980
million euro
26,060
29,143
32,235
million euro
Equity
Total assets
17,205
22,318
million euro
71,693
Cayenne
239,618
Units
Production
24,864
17,207
15,240
Units
65,941
73,119
70,867
Units
Panamera
Cayenne
44,636
80,216
95,642
Units
234,497
Units
203,097
Units
59,363
86,016
97,177
Units
Macan
23,211
21,978
24,882
Units
Boxster Cayman
545
375
Units
918 Spyder
31,590
31,373
31,648
911
Macan
2,666
2,114
Christian Weiss, Spokesperson, Procurement, Production & Logistics
Matthias Rauter, Spokesperson, Human Resources and Sustainability
Nadine Toberer, Spokesperson, Sales and Marketing
Frank Scholtys, Director Corporate Communications
Daniela Rathe, Director Politics and External Affairs
Michaela Burtsche, Sustainability Management
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
Anja Wassertheurer, Director Product and Technical Communications
Elena Storm, Spokesperson, Sports Cars
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.
Ben Weinberger, Spokesperson, SUVs and Saloons
Hermann-Josef Stappen, Spokesperson, Technology
Rolf Antrecht
FSC® C006024
From responsible
sources
MIX
www.fsc.org
FSC
Scheufelen phoenixmotion Xenon
Metapaper SMOOTH white
Paper
das druckhaus print & neue medien
Printing
stormingdesign
Porsche Newsroom App
Meiré und Meiré, C3 Creative Code and Content
Digital design
Meiré und Meiré
Art direction and editorial design
Meiré und Meiré
Conceptualized by
Consultation
2,427
Reporting standard and assurance
(G4-32, G4-33)
Contents of the report and reporting period
(G4-18, G4-23, G4-28)
million euro
Operating result (EBIT)
3,179
3,843
3,864
million euro
Cash flows from operating activities
1,878
2,124
2,081
million euro
Depreciation, amortization and impairment losses
10,405
12,095
12,623
million euro
Cost of materials
3,877
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.
3,404
Profit before tax
About this report
113
SCAN
THIS PAGE
Performance - Further Information
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
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.
Profit after tax
2,201
2,335
2,640
million euro
3,060
3,382
3,697
million euro
2,719
580
23,597
23,620
S08
Report profile
→ Index
Full
Legal actions for anti-competitive behaviour, anti-trust and monopoly practices
S07
→ Text
32-35
Full
Results of stakeholder dialogue and response by the company
G4-27
→ Index/Text
Full
Political contributions
S06
→ Text
32-33
Sanctions for non-compliance with laws and regulations
Full
Full
G4-28
G4-30
→ Index
→ Text
32
Full
Grievances in relation to societal impact
S011
114
Full
Date of most recent report
G4-29
Partial
Screening of suppliers using criteria relating to societal impact
S09
114
Full
Reporting period
→ Index
Reporting cycle
Approaches to stakeholder dialogue
→ Index
→ Text/Kennzahlen
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
Stakeholder engagement
G4-26
S03
Stakeholder groups engaged
Full
→ Index/Kennzahlen
36
Full
→ Index
Full
Operations and sites assessed for risk of corruption
Communication and training on anti-corruption
Incidence of corruption and corrective actions taken
S05
→ Text
32-33
Full
Selection of stakeholders
G4-25
S04
→ Text
32-34
Full
G4-24
22,663
Full
Product responsibility
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
→ Index/Text
27-29, 36-37, 39-40
Full
Values, principles, standards and norms of behaviour
G4-56
Ethics and integrity
Porsche AG Group
Partial
Brief overview
FY 2015
Units
Boxster/Cayman
301
566
44
Units
918 Spyder
30,510
189,849
225,121
31,350
32,365
Units
237,778
Units
911
Deliveries
FY 2014
FY 2016
114
Grievances regarding breaches of customer privacy
Partial
→ 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
→ Index
PR8
G4-33
Partial
Standards and voluntary codes of conduct in relation to advertising
PR7
→ Text
6-7, 106-107
Full
Governance structure of the company
G4-34
Full
Sale of banned or disputed products
Corporate governance
PR6
→ Text
36, 41, 66
Full
Results of customer satisfaction surveys
PR5
114
External assurance
427
911 Turbo S
66
911 GT3 PDK
168
7.4
6.0
9.9
300
220
718 Cayman PDK
718 Cayman
718
CO₂
emissions
(combined)
[g/km]
[I/100 km] [I/100 km]
(extra-urban) (combined)
(urban)
[I/100 km]
sumption
sumption
sumption
911 GT3
output [kW] [hp]
368
19.4
257
718 Cayman S
158
6.9
5.7
9.0
300
220
290
12.9
8.8
19.7
500
368
288
12.7
8.8
500
350
Fuel con-
Fuel con-
*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 general works council of Dr. Ing. h.c. F. Porsche AG
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
106
Fuel con-
107
Model
Power
Power
[I/100 km] [I/100 km]
[I/100 km]
emissions
sumption
(extra-urban) (combined)
sumption
(urban)
sumption
CO₂
Fuel con-
Fuel con-
Fuel con-
Power
Power
output [kW] [hp]
Model
(combined)
[g/km]
Emission and Consumption Information
Manfred Pache*
10.7
8.1
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*
324
Panamera 4S
184
911 (991 I)
8.1
Panamera Turbo Executive
550
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
20.1
500
368
911 R
12.9-12.8*
13.1-12.9*
404
6.5
6.5
350
Panamera
Panamera
168
7.4
6.0
9.9
300
220
718 Boxster
167
7.3
6.0
9.5
350
257
718 Cayman S PDK
184
Panamera 4
10.7
243
9.8-9.7*
257
718 Boxster S
330 10.0-9.9*
243
Panamera 4 Executive
158
6.9
5.7
9.0
300
220
718 Boxster PDK
9.9-9.8*
330
243
7.6-7.5* 173-171*
6.3
330
9.4-9.3* 214-212*
Section manager, company and industry policy, Executive Board of the IG Metall trade union
Member of the Zuffenhausen/Ludwigsburg/Sachsenheim works council
Member of the works council of Porsche Automobil Holding SE
Total number of participants
Training programme participants ¹)
"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.
1,666
1,817
1,923
14,804
16,419
18,312
2,200
14,270
15,753
17,363
2,483
2,872
2014
2015
2016
Female
3,061
Male
Employees subject to wage agreements
Accidents 2
102
"We do not report on minorities, as we are not permitted to collect this data due to personality rights.
1.0%
1.0%
0.8%
Porsche Leipzig GmbH
12.0%
12.0%
12.2%
Porsche AG
2014
2015
2016
Number of accidents, lost days and fatalities ¹)
SCAN
THIS CHART
Employees exempt from wage agreements and executive employees
Distribution of participants by employee category
Lost days³)
3,667
22,401
13,409
Of which Porsche Leipzig GmbH"
Of which Porsche AG")
Porsche Group (including subsidiaries)
Total workforce
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
"Investments at the Zuffenhausen and Weissach sites have been included in calculations
27%
12.30
27%
11.54
47%
20.48
Prevention
1.09
"The specified employee figures are based on reports by region
3,994
(Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
Employees by gender
24,481
14,569
16,241
27,612
2014
2015
2016
2014
2015
2016
Employee turnover ¹)
Proportion of foreign employees¹)
"Due to the equal payment and attractive framework conditions, the number of temporary employees
has not been reported separately.
Employees exempt from wage agreements and executive employees
Employees subject to wage agreements
Employees by type of employment ¹)
Male
Female
Employee structure
Tanja Jacquemin*
Fatalities
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.
Investment management
Dr Ferdinand Oliver Porsche
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
of Dr. Ing. h.c. F. Porsche AG
The Supervisory Board
Porsche in Figures - Brief Overview
GRI Content Index
Emission and Consumption Information
The Supervisory Board
Further Information
103
Hans-Peter Porsche
Approx. 6.3
Engineer
Diplom-Wirtschaftsingenieur
Member of the general works council
Deputy chairman of the group works council
Antonio Girone*
Head of Sales Planning
Wolfgang von Dühren*
Member of the Board of Management of Porsche Holding GmbH
Dr Hans Peter Schützinger
with responsibility for Human Resources and Organisation
Member of the Executive Board of Volkswagen AG
Dr Karlheinz Blessing
Member of the Executive Board of Volkswagen AG
with responsibility for Finance and Controlling
Frank Witter
Member of the Executive Board of Volkswagen AG
with responsibility for Procurement
Dr rer. pol. h.c. Francisco Javier Garcia Sanz
Betriebswirt
Chairman of the Executive Board of Volkswagen AG
Matthias Müller
Chairman of the Executive Board of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Hans Dieter Pötsch
"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.
Approx. 4.6
2014
13,833
17,963
18,337
16,764
2,931
3,768
3,461
21,731
21,798
2014
2015
2016
0.76%
0.60%
0.60%
Performance - Key figures
Donations made in million euro
31 Working days are counted as lost days (usually Mo-Fr); the day of the accident is not included (>= 1 lost calendar day).
90.7%
Approx. 5.0
85.8%
9.3%
2015
2016
0
0
1
2,605
2,542
1,957
247
165
171
2014
2015
2016
SCAN
THIS CHART
20.6%
14.2%
79.4%
11.40
9.5-9.4* 217-215*
911 GT3 RS
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
370
272
6.7
267
8.0
Model
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
13.3
450
331
911 Carrera 4 GTS Cabriolet
184
12.4
11.5
6.8-6.6* 179-173*
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
370
9.8-9.5* 229-223*
12.4
8.9
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
382
440
324
385
283
420
309
262
193
Cayenne Turbo S
206
6.9
180
6.9
206
11.2
450
331
911 Targa 4 GTS PDK
56
15.9
2.5
462
340
Panamera 4 E-Hybrid Sport Turismo
220
9.7
7.6
13.3
450
331
911 Targa 4 GTS
7.3
56
8.7
Panamera Turbo S E-Hybrid
16.2
2.9
680
500
Panamera Turbo S E-Hybrid Executive
212
9.1
7.5
11.8
540
397
911 Turbo
66
16.2
2.9
680
500
196
8.9
15.9
462
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]
(combined)
Power
Fuel con-
sumption
Power
[hp]
output [kW]
Power
309
2.5
420
6.8
340
Panamera 4 E-Hybrid Executive
184
8.0
6.7
10.4
420
309
911 Targa 4S PDK
56
15.9
2.5
462
340
Panamera 4 E-Hybrid
208
9.0
12.6
6.8-6.7* 178-176*
7.9
10.3
450
331
174
7.7
6.4
10.1
420
309
9.5-9.4* 217-215*
6.8-6.7* 178-176*
8.3-8.2* 189-187*
7.9-7.8* 180-178*
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
12.9
8,7
7.3
212
Macan S
195
8.5
6.5
11.9
370
272
252
185
Macan
188
8.3
6.9
10,7
450
331
Macan
9.4
250
6,6
420
911 Carrera Cabriolet
911 Carrera GTS PDK
911 Carrera GTS
911 Carrera S PDK
911 Carrera S
911 Carrera PDK
911 Carrera
911 (991 II)
243
Panamera 4 Sport Turismo
Panamera Sport Turismo
296
12.7
8.9
19.2
500
368
911 Carrera Cabriolet PDK
12.2
911 Carrera S Cabriolet
370
309
550 13.1-12.9*
404
Panamera Turbo Sport Turismo
169
7.4
6.0
9.9
370
272
330 10.0-9.9*
440 10.4-10.3*
324
Panamera 4S Sport Turismo
190
8.3
6.3
11.7
272
6.6
272
9.9
272
911 Carrera 4 PDK
Cayenne
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
370
9.7-9.4* 224-217*
10.1
7.7
420
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
6.3
370
8.0-7.7*
7.8-7.5*
360 11.8-11.4*
265
Macan GTS
202
8.8
6.7
12.3
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
7.8-7.4*
9.2-8.9* 216-208*
7.4-7.2* 172-167*
9.0-8.7* 212-204*
6.3-6.1* 164-159*
9.2-8.8* 215-207*
309
400 11.8-11.5*
440 12.6-12.3*
324
Macan Turbo Performance Package
214
9.4
7.3
12.9
450
331
911 Carrera GTS Cabriolet
294
Macan Turbo
178
7.8
6.5
10.2
420
911 Carrera S Cabriolet PDK
26%
Scale of the company
Gewandhaus Leipzig and Stuttgart Ballet
Porsche extended its contract with Gewand-
haus Leipzig in June and will support the
popular "Klassik airleben" series of open-air
concerts in Rosental for another three years.
The company has been a "global partner"
of the Gewandhaus Orchestra since 2011. It
also extended its contract with the Stuttgart
Ballet for three more years. Porsche has
been the main sponsor of the Stuttgart Ballet
since 2012.
S.GO 500E
ווווודד
toward ensuring sustainably high profitability.
At the close of 2016 the Supervisory Board re-
appointed Lutz Meschke, Deputy Chairman of
the Executive Board and Member of the Execu-
tive Board Finance and IT, for another five years.
Meschke has been a member of the Porsche Ex-
ecutive Board since 2009, and its deputy chair-
man since 2015. Supervisory Board Chairman
Dr Wolfgang Porsche praised Meschke's work
Contract with Lutz Meschke extended
IMPORTANT EVENTS
911
PORS
Outlook
LUTZ MESCHKE
Important events
Business performance
Performance - Letter from the Executive Board of Porsche AG
The Executive Board of Porsche AG
Motor racing is part of our identity. Sporting ambition is
what has driven Porsche engineers right from the beginning.
For seven decades, the race track has been the unforgiving
test platform that sports-car technology needs. Electrifi-
cation, digitalisation and connectivity determine how, when,
where and with what means we will all get around in future.
One thing remains: there is a racing car in every Porsche.
Yesterday. Today. Tomorrow.
A reorganisation of motor racing is taking shape as a result.
From 2019, Porsche will enter its own works team into
Formula E. Conversely, we have ended our LMP1 involve-
ment in the FIA World Endurance Championship after
capturing our third manufacturer and driver titles in a row
and our 19th overall victory in Le Mans. Formula E is, for us,
the ultimate competitive environment in which to promote
the development of high-performance vehicles with regard
to environmental friendliness, efficiency and sustainability.
At the same time, we are strengthening our involvement in
the GT Class.
Porsche and electromobility fit together perfectly. We are
working consistently on the hybridisation of our fleet. And, in
Zuffenhausen, we are preparing for production of the brand's
first purely battery-driven sports car. By 2019, around a
billion euros will have been invested in the Mission E project.
This project involves the emergence of a completely new
plant at our headquarters in Zuffenhausen - a factory within
the factory. Our goal is CO2-neutral manufacturing. Deriva-
tives of the Mission E are already conceivable, and we are
also planning additional purely electric vehicles.
and networked - is the epitome of a sporty and yet
day-to-day SUV. With the new Panamera Sport Turismo,
we are adding another body variant to the successful
model line. And, with the Panamera Turbo S E-Hybrid, we
are for the first time positioning a plug-in hybrid as the
top model in a model line, thus underlining the key impor-
tance of electromobility.
Among the highlights of the last financial year were the
millionth 911, which drove off the production line in May.
The 911 is the epitome of a series-production sports car,
a style icon and both the face and heart of the Porsche
brand. New 911 GTS variants, the pure driving machines
911 GT2 RS and 911 GT3, the 911 Turbo S Exclusive
Series and the GTS models 718 Boxster and Cayman as
well as the 911 Carrera T - all these powerful, uncompro-
mising sports cars are the vibrant and ageless expression of
the fascination that is Porsche. While the new Cayenne -
now in its third generation and comprehensively digitalised
of our activities on the entire value chain, the environment
and society. In future, we want to set ourselves apart from
the competition not only through more innovation, but
increasingly with the sustainability of our products and
manufacturing processes.
Economic success is inseparable from ecological and social
responsibility. We, too, must be measured by the effects
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129. 7
Porsche is developing itself, from a manufacturer of ex-
clusive sports cars into a leading provider of digital mobility
solutions in the premium segment of automobile manu-
facture. With Porsche Digital, our lab in Berlin, and the
innovation platform Startup Autobahn, for example, we
are encouraging our employees to unleash their creativity
and open ourselves up to new ideas from newly formed
companies from around the world. The joint venture IONITY,
which has Porsche and Audi as partners representing the
Volkswagen Group, is working on putting in place a network
of powerful quick-charging stations along Europe's main
traffic arteries by 2020.
Order of Merit for Uwe Hück
Baden-Württemberg
Deciduous forests for clean drinking water
Promoting mixed forests over coniferous
monocultures: some 5,000 sessile oak trees
were planted on 1.5 hectares of land between
Rutesheim and Weissach in April. These young
trees replaced a spruce forest that had been
damaged by storms. Deciduous forests gener-
ate an average of 800,000 litres more ground-
water per hectare than coniferous monocul-
tures year after year, for generations. Porsche
is thereby supporting a project from the Trink-
wasser e.V. association. Another tree-planting
event followed in Ludwigsburg in autumn.
Porsche and Microsoft on the gamepad
Porsche entered into a six-year partnership
with Microsoft in virtual racing and electronic
games at the New York International Auto
Show in April. It will give Porsche a higher pro-
file in the "Forza Motorsport" and "Forza
Horizon" series of racing games. This partner-
ship centres around the growing field of
eSports, which are contests played out in
virtual settings.
Porsche opened its first site on the island of Sylt in April. Part of a new sales strategy, it includes
a showroom, the Porsche Drive rental service, products from Porsche Design and Porsche
Driver's Selection, automotive consulting and a small workshop. Part of the site's 500 square-
metre area will be used to present a changing series of exhibitions.
First Porsche site on Sylt
PORSCHE ON SYLT
PORSCHE AUF SYLT
New training centre in Leipzig
Porsche opened a new training centre in
Leipzig in April. Its modern workshop and
seminar rooms plus innovative teaching
facilities on 2,300 square metres of space
give it the best infrastructure for professional
training. Porsche was training more than
120 apprentices in Leipzig in 2017 to be
industrial and tool mechanics as well as
mechatronics specialists. A dual work-study
program will also be offered in mechanical
engineering for the first time.
NEW TRAINING CENTRE IN LEIPZIG
Ausbildungszentrum
Uwe Hück, chairman of the general and Group
Works Council, received the Cross of the Order
of Merit (Verdienstkreuz am Bande) of the
Federal Republic of Germany in January for his
outstanding commitment. He was congratu-
lated by Winfried Kretschmann, Minister Presi-
dent of the State of Baden-Württemberg: "Your
outstanding services to the general good have
now received fitting public recognition." In the
words of Chairman of the Executive Board
Oliver Blume, "Uwe Hück embodies reliability -
he is a tough negotiator but always works for
the good of the company and the employees."
Eröffnet.
The Panamera Sport
Turismo, Panamera
Turbo S E-Hybrid and
the new 911 GT3
celebrated their world
premieres at the Geneva
Motor Show in March.
The Panamera Turbo S
E-Hybrid was another
highlight and the first
plug-in hybrid to be
positioned at the top of
TRAINING CENTRE IN CAPE TOWN
Porsche Design Group became a wholly owned
subsidiary in April. Porsche AG acquired 35 per
cent of the shares of Porsche Lizenz- und
Handelsgesellschaft mbH & Co. KG (Porsche
Design Group) from a holding company owned
by the Porsche family. Porsche had already
owned the remaining 65 per cent of shares.
Porsche Design is a premium lifestyle brand
founded in 1972 by Professor Ferdinand
Alexander Porsche.
Porsche Design Group
Community training project in South Africa
Porsche opened a new training centre in Cape
Town in March. Over three years, 75 women
and men from disadvantaged backgrounds will
be trained as mechatronics service specialists.
To provide opportunities to as many young
people as possible, Porsche is deliberately
training more individuals than it needs for its
own workforce. South Africa's Porsche im-
porter LSM Distributors and the Don Bosco
Salesian Institute Youth Project (SIYP) in Cape
Town are partners in this project. Porsche is
providing the rooms, cars, and syllabi, and is
also training the instructors.
The Panamera Sport Turismo, Panamera Turbo S E-Hybrid and the new 911 GT3 celebrated their
world premieres at the Geneva Motor Show in March. The Panamera Sport Turismo adds a new
version of the body to the model line. With a large tailgate, low loading sill, larger luggage volume
and 4+1 seating concept, this new four-door car meets high demands for everyday usability and
flexibility. The Panamera Turbo S E-Hybrid was another highlight and the first plug-in hybrid to
be positioned at the top of a Porsche model line. And the new 911 GT3 presented in Geneva is a
racing-based two-seater with systematic lightweight construction - ideal for both the racing
track and everyday use.
World premieres in Geneva
PANAMERA TURBO S E-HYBRID
UWE HÜCK RECEIVES ORDER OF MERIT
a Porsche model line.
10
In the last financial year, we continued to solidify our
foundation for value-creating growth as part of the Porsche
Strategy 2025. Our industry is reinventing itself. And, to
a certain extent, so is Porsche. The electrification of our
drive systems is just one dimension. The digital changeover
goes much deeper than that. It affects the way in which
cars will be used in the future, how we will control devel-
opment and production, how we will work with suppliers,
interact with customers and open up new business
opportunities and markets.
Porsche, once again, exceeded itself in the financial year
just ended. The number of vehicles delivered beat
2016's previous record number by four per cent. At the
same time, the operating profit increased to 4.14 billion
euros. Despite significant investments, our profit - at
17.6 per cent - continues to be among the best in the auto-
motive industry. We have also never had as many people
working for our company as now.
Value added statement
Consolidated statement of changes in equity
Consolidated statement of cash flows
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated income statement
Financial data
Results of operations
64
Key figures
8
139
114
112
110
108
106
104
102
98
6
Seventy years after the first Porsche sports car was created,
and at the threshold of a new era in automobile develop-
ment, we are combining tradition with innovation. We are
putting uncompromising sportiness onto the road, together
with the benefits of new technology. We are adapting
the power of our history to fulfil the requirements of future
individual mobility.
Key economic figures
5
Dear Sir or Madam,
Sales and Marketing
Detlev von Platen
Deller von
Tak
Oliver Blume
Chairman of the
Executive Board
Dume
Sliver.
Andreas Haffner
Human Resources
and Social Affairs
susteas.
Legal notice
Lutz Meschke
Deputy Chairman
of the Board
Finance and IT
Production and Logistics
Albrecht Reimold
眺
Procurement
Uwe-Karsten Städter
Research and Development
Michael Steiner
Mikael fleiner Enne Hällen
Letter from the Executive Board of Porsche AG
раг виши
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance Important events
PORSCHE SUPPORTS TRINKWASSER E.V.
Demand in the US market fell by 1.8 per cent
to 17.2 million vehicles in 2017. A healthy
employment situation and incentives offered
by vendors were not enough to stem the
downward trend. Nevertheless, SUVs and
pick-ups proved very popular, recording
growth of 5.7 per cent. Sales of traditional
passenger cars shrank by 10.9 per cent.
The Canadian automotive market expanded by
4.6 per cent to 2 million vehicles. In South
America, there was a significant 12.6 per cent
increase in demand for passenger vehicles
and light commercial vehicles to 4.2 million
units, albeit from a low base. The Brazilian
market recorded growth again for the first time
after four years of falling registrations, with an
increase of 9.4 per cent to 2.2 million vehicles.
The market volume in the Asia-Pacific region
in 2017 grew by 4.7 per cent to 37 million
units. The most important growth market was
China which expanded by 4.5 per cent to
23.9 million vehicles.
Sales of 20.8 million passenger cars and light
commercial vehicles up to 6.35 tonnes in
North America equated to a 1.4 per cent fall
compared with the record level of 2016.
and an environmental bonus for electric vehi-
cles. Demand in Italy (+8.1 per cent) and
Spain (+7.7 per cent) benefited from drivers
seeking to replace older vehicles and from a
significant expansion of sales to commercial
customers. France recorded growth of
4.8 per cent while sales in the United Kingdom
were 5.7 per cent down on the previous year.
In 2017, the global automotive market expand-
ed by 2.9 per cent to 83.5 million vehicles.
While Asia-Pacific, South America and west-
ern and eastern Europe experienced greater
demand, performance in North America was
down on the previous year. In Western Europe,
new vehicle registrations increased by
2.5 per cent to 14.3 million vehicles, the high-
est level in a decade. In Germany, an additional
3.4 million units came on to the road, a rise
of 2.7 per cent. Alongside the healthy economic
situation as a whole, this increase can be
attributed to price discounts in the form of a
switching premium for older diesel models
The US economy grew by 2.2 per cent,
also a sharper rise than the previous year
(1.5 per cent). This growth was largely driven
by private consumption. The US dollar was
somewhat weaker than in the previous year.
In Brazil, the reporting year saw the economy
climb out of its trough of the previous year.
Economic output increased by 0.9 per cent
after a 3.6 per cent decrease in 2016. Never-
theless, political uncertainty is one factor
that continues to weigh heavily on what
is South America's largest national economy.
The Chinese economy grew by 6.9 per cent
in 2017 (2016: 6.7 per cent).
The world economy recorded GDP growth
of 3.2 per cent in 2017 (2016: 2.5 per cent).
Economic momentum picked up in both
the advanced economies and in emerging
markets. In western Europe, GDP growth rose
slightly throughout the year compared with
the previous year, hitting 2.1 per cent (2016:
1.8 per cent). Uncertainty was caused by
the UK's Brexit negotiations with the European
Union, the outcome of which, as well as the
future shape of the relationship between the
UK and EU, remain unclear. In Germany, con-
sumer optimism and a buoyant labour market
helped push up growth in GDP compared
with the previous year (2017: 2.5 per cent;
2016: 1.9 per cent).
Dynamic global economy
BUSINESS PERFORMANCE
6.9% China
Record year
7.7%
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
Performance Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
16
In December the Porsche Supervisory Board
reappointed Detlev von Platen, Member of the
Executive Board for Sales and Marketing, and
Andreas Haffner, Member of the Executive
Board for Human Resources and Social Affairs,
each for five years. Von Platen joined the
Porsche Executive Board in November 2015,
and Haffner in October 2015. Supervisory
Board Chairman Dr Wolfgang Porsche praised
their work in introducing the new generation
of the Panamera onto international markets
and ensuring the future of the Zuffenhausen
site through the building of production facil-
ities for Porsche's first fully electric sports car.
Four-car world premiere in Los Angeles
Porsche celebrated world premieres for four
sports cars at the Los Angeles Auto Show
in late November. The Panamera Turbo S
E-Hybrid Sport Turismo, 718 Boxster GTS
and 718 Cayman GTS are now the flagships
of their respective model lines, while the
911 Carrera T is a purist lightweight car.
The new generation of the Cayenne was also
introduced to the US in Los Angeles.
Contracts extended
DETLEV VON PLATEN
ANDREAS HAFFNER
to support digital business ideas with high mar-
ket appeal that have the potential to change
sectors. The aim is to invest in foundational
stages of start-ups.
17
Axel Springer Digital Ventures and Porsche
Digital launched a new start-up accelerator in
Berlin in November. They signed a joint venture
agreement with equal shares. Its mission is
Porsche enjoyed another record year in 2017.
Its success has been based on an attractive
product range and excellent customer service.
Porsche has the sportiest vehicles in every
segment in which the brand is represented,
and has added further highlights to its
portfolio in the past year.
High demand for the Macan and Cayenne
SUV models, which remained the two most
popular model lines in 2017, once again
shows Porsche's strong position as a sports-
car maker in this segment. 63,913 deliveries
of the Cayenne were recorded. This very
high level of deliveries was achieved despite
the change in model. The Macan was once
again Porsche's most popular series in 2017,
recording 97,202 deliveries. Hybrid models
were also in high demand: the global share of
hybrid vehicles performed well in comparison
with the previous year. This success is primarily
owed to the strong market demand for the
sporty e-hybrid models of the new Panamera,
the hybrid version of which more than doubled
its share of global sales to 17 per cent.
19
2.1% Western Europe
2.2% US
2.5% Germany
3.2% Global economy
Performance - Important events
2017
2016
2015
In total, 246,375 new vehicles were handed
over to customers in 2017, more than in any
other single year in Porsche's history. Year-on-
year growth amounted to four per cent. The
major contributor was the new Panamera,
sales of which almost doubled in 2017. The
new mid-engine sports cars also left their
mark - the 718 Boxster and Cayman models
were very well received on the market with
25,114 deliveries worldwide, comfortably
surpassing the previous year's figures.
2014
0%
0.2%
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
18
2.2%
2.6%
Percentage change in GDP
Economic growth
The world economy
recorded GDP growth
of 3.2 per cent in 2017
(2016: 2.5 per cent).
Economic momentum
picked up in both the
advanced economies
and in emerging markets.
2013
Start-up accelerator
Porsche wins third successive world title
Porsche crowned the career of the 919 Hybrid
in November with its third manufacturers'
title in a row. Second- and third-place finishes
at the 6 Hours of Shanghai race enabled it
to clinch the title after eight of the nine races
in the FIA World Endurance Championship
(WEC). Earlier in the season the car had won
not only Le Mans but also the races on the
Nürburgring, in Mexico City and in Austin.
a high-power charging
network for electric
vehicles in Europe.
DMM
CHO
WEC
2
ZhLE
omg om
Dramatic finish to the 24 Hours of Le Mans in June: Earl Bamber, Timo Bernhard and Brendon
Hartley battled back from 56th place and 18 laps behind to take first place overall in a Porsche
919 Hybrid. This is the 19th overall victory in Le Mans for record-holder Porsche, and the
third in a row. And any team winning the toughest race in the world three times in succession
is allowed to keep the challenge cup.
19th overall victory for Porsche in Le Mans
The one-millionth Porsche 911 rolled off the
production line in Zuffenhausen on 11 May.
It was a Carrera S in the individual colour of
Irish Green - in honour of the very first 911
from the year 1963. The 911 remains the
strategically most important model in the pro-
duct range. It plays a key role in making
Porsche one of the most profitable carmakers
in the world.
Production milestone
WOLFGANG PORSCHE WITH ANNIVERSARY MODEL
A new site that opened in Santa Clara in Silicon
Valley, California, in May will enable Porsche
Digital Inc. to build partnerships with technol-
ogy experts, innovators and venture capital
companies. The aim is to identify digitalisation
strategies and trends on the US market earlier
in order to develop and test solutions for
Porsche. Porsche Digital Inc. is expected to
employ around 100 people in Santa Clara.
LAURA SIEGEMUND
ROLEX
and Brendon Hartley in the
Porsche 919 Hybrid battled
back from 56th place and
18 laps behind to win
and claim Porsche's 19th
overall victory.
of Le Mans in June:
Earl Bamber, Timo Bernhard
Drama at the 24 Hours
911 Carrera GTS Cabriolet, awarded to the
tournament winner. This anniversary year
marked the fourth time in a row that players
voted the traditional Stuttgart championship
their favourite tournament in this category.
of golden confetti she climbed into a Porsche
Siegemund wins Porsche Tennis Grand Prix
Stuttgart-born Laura Siegemund won the
40th Porsche Tennis Grand Prix in late April.
In a dramatic final match that lasted two-and-
a-half hours, she beat Kristina Mladenovic
from France 6:1, 2:6, 7:6. Amidst a shower
11
Porsche Digital in Silicon Valley
PARD
EARL BAMBER, TIMO BERNHARD AND BRENDON HARTLEY AT LE MANS WITH THE 919 HYBRID
GT2 RS: world premiere in Goodwood
The 911 GT2 RS - the fastest and most
powerful 911 of all time - entered the Festival
of Speed in Goodwood (UK). This high-perfor-
mance sports car has a bi-turbo flat engine.
that lets it accelerate from zero to 100 km/h
in 2.8 seconds. It set a new record for road-
authorised sports cars on the Nürburgring-
Nordschleife (north loop) with a time of
6:47.3 minutes.
launched the IONITY
joint venture to build
the Volkswagen Group,
through Audi and Porsche,
In November the BMW
Group, Daimler AG, Ford
Motor Company and
IONITY HIGH-POWER CHARGING NETWORK
MONITY
15 minutes, which is equivalent to a range of
400 kilometres. The Mission E will come onto
the market in 2019.
IONITY-high-power charging network
In November the BMW Group, Daimler AG,
Ford Motor Company and the Volkswagen
Group, through Audi and Porsche, launched
the IONITY joint venture to build a high-power
charging network for electric vehicles in
Europe. Setting up and operating around 400
high-speed charging stations by 2020 are
important steps in making electric cars viable
for long as well as short distances, and there-
by helping to establish them on the market.
These stations can recharge 80 per cent of the
Porsche Mission E's battery capacity in just
Porsche mourns Peter W. Schutz
Former Chairman of the Porsche Executive
Board Peter W. Schutz passed away on
29 October at the age of 87. He is remem-
bered at Porsche not only for preserving
the iconic 911 sports car but also for success-
fully introducing the 911 Cabriolet to the
US-American market. The Porsche model
range became more attractive under his
leadership, and he also set the company on
a new strategic course.
to meet the emissions standards they were
originally certified for. This involves 11,500
Porsche Cayenne V6 diesel cars in the US.
US authorities approved a technical solution in
late October to adjust emissions for cars with
3.0-litre V6 TDI engines. This will enable more
than 38,000 cars with "Generation 2.1" and
"Generation 2.2" 3.0-litre V6 TDI engines
Software update for Cayenne Diesel
718 BOXSTER
Porsche Cars North America is running a pilot programme to test the Porsche Passport.
It offers flexible access to Porsche cars via a mobile app. With two membership packages,
Porsche Passport makes first-class cars available to users in the Atlanta metropolitan
area. The first package, with a monthly fee of 2,000 US dollars, offers on-demand access
to eight model versions including the 718 Boxster, Cayman S, Macan S and Cayenne.
PORSCHE ENGINE CONSTRUCTION AT PLANT 4
Sustainable: Porsche's industrial quarters
Porsche's Plant 4 received the platinum sus-
tainability award from the German Association
for Sustainable Construction (DGNB) in Octo-
ber. This award recognises the quality of eco-
nomic, environmental, sociocultural, functional
and technical processes for newly constructed
and converted industrial quarters. Plant 4 had
already received gold for the precertification
stage in 2015.
Porsche opened an "innovation office" in
Tel Aviv in June to identify technological trends
and recruit talent. Israel has more start-ups
per capita than any other country in the world.
Porsche is also investing an eight-figure sum
in the Magma and Grove venture capital funds.
Magma Ventures concentrates on artificial
intelligence and the automotive sector. It is
considered one of Israel's leading funds, with
investments in successful start-ups like
Waze and a portfolio of 600 million US dollars.
Grove Ventures is a capital company with a
volume of 100 million US dollars. It focuses on
early-stage technologies in the Internet of
Things (IoT), the cloud and artificial intelligence.
Gold from J.D. Power
Innovation campaign in Israel
LEIPZIG PLANT
Fabio Barsotti became Managing Director of
the Nardò Technical Centre in Apulia (Italy)
in June. The testing and proving grounds have
been operated since 2012 by the Porsche
Engineering Group GmbH in Weissach, a wholly
owned subsidiary of Porsche AG.
Nardò Technical Centre
US: Porsche models subscription service
96
94
Financial position
90
a logistics truck with a fully electric drive on
the route between the logistics centre and
the assembly supply centre. Porsche is the
first carmaker in Europe to use this fully
electric 40-tonne vehicle that can also run
on motorways.
100%
elektrisch
Hier finde
100%
911 GT3 WITH TOURING PACKAGE
Porsche Financial Services
Holger Peters and Jörg Pape joined long-
standing company heads Albert Moser and
Konrad Riedl on the Management Board
of Porsche Financial Services GmbH. Their
appointments are the result of strong growth
as well as strategic challenges related to digi-
talisation and greater internationalisation.
Public transport pass to Weissach
Together with the Pforzheim-Enzkreis public
transit authority (VPE) Porsche has developed
a new "Jobticket" pass for employees at the
Weissach Development Centre which is com-
parable to that for the Stuttgart public transit
association (VVS). Introduced in September,
the pass costs 46 euros a month and is valid
for unlimited travel throughout the entire
VPE network. Porsche pays a 10-euro subsidy
per employee per month.
14
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
EJIT PROJECT
Performance Important events
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
Logistics of the future: fully electric
Porsche Leipzig launched the eJIT project in
August. Its three-year pilot phase will test
15
Porsche's Zuffenhausen headquarters was
transformed into a sport arena on 17 Septem-
ber. More than 3,000 employees ran a
911-metre circuit for six hours to raise money
for charity. For each lap completed, Porsche AG
donated five euros to charity organisations
in the Stuttgart region. Employees completed
26,033 laps, which earned a total of 185,000
euros for the Olgäle Foundation, the Stuttgart
Children's and Youth Hospice, Stuttgart's
Mobile Youth Services, Stuttgart Jugendhaus
gGmbH and the Gustav Werner School in
Zuffenhausen. The sum includes a generous
contribution from the Porsche AG board.
PORSCHE
THIRD 6-HOUR CHARITY RUN
Partnership with start-up
The Porsche Digital subsidiary launched a
partnership with the Stuttgart-based tech
company Home-iX in September. A B2B
start-up specialising in smart living, Home-iX
was founded in 2016 by two former Porsche
employees, Mehmet Arziman and Heiko
Scholtes. It helps companies in the automotive
industry offer individualised smart living
solutions that connect cars and homes.
Porsche Cars North America
is running a pilot pro-
gramme to test the Porsche
Passport. It offers flexible
access to Porsche cars
via a mobile app. With two
membership packages,
Porsche Passport makes
first-class cars available to
users in the Atlanta metro-
politan area.
SCAN THIS CHART -
how to use the augmented
reality options
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.
SCAN
6-hour run for charity
In July Porsche announced plans to enter a
factory team in the Formula E championship
in 2019. It is therefore ending its involve-
ment in the LMP1 class of the FIA World
Endurance Championship at the close of the
2017 season. Porsche's racing strategy will
focus on entering the 911 RSR in the GT class
of long-standing endurance contests such as
the WEC and the IMSA WeatherTech SportsCar
Championship in the US. This new racing
focus is based on Porsche's Strategy 2025:
among other things, the company will focus
on a combination of purist GT cars and
fully electric sports cars like the first purely
battery-powered Mission E.
World premiere of the new Cayenne
New engines, a new chassis, an innovative
operating concept and greater connectivity all
feature in the new Cayenne presented by
Porsche in Zuffenhausen in August. The third
generation is a completely newly developed
version of this successful car which boasts
sales of over 770,000 since 2002. It will offer
even greater typical Porsche performance
combined with superior everyday practicality.
The new Cayenne shows significantly devel-
oped visuals, which are now more precise,
elegant, athletic and expressive. For the car's
world premiere at the Porsche Museum, Jesse
Milliner composed a "Sinfonie des Lebens"
("Symphony of Life") that was performed by
Prague's Bohemia Symphony Orchestra and
Leipzig's Gewandhaus Orchestra. In addition
to the symphony, the event included dancers,
live musicians and an elaborate light show.
Porsche plans to enter Formula E
Porsche received top marks from the J.D.
Power quality study in June once again, with
honours for the 911, Macan and the Leipzig
plant. The US-based market research insti-
tute's "Initial Quality Study" gave the 911 the
number-one ranking in its segment for the
sixth time in a row. The Macan also built on
previous successes to take the top position
in its segment for the third successive time.
In the factory category for Europe/Africa,
Porsche's Leipzig plant took first place and
the Gold Award.
Porsche received top
marks from the
J.D. Power quality study
in June once again, with
honours for the 911,
Macan and the Leipzig
plant. The US-based
market research
institute's "Initial Quality
Study" gave the 911
the number-one ranking
in its segment for the
sixth time in a row.
GERD RUPP
Gerd Rupp now head of the Leipzig plant
Gerd Rupp became Chairman of the Executive
Board of Porsche's Leipzig plant on 1 July.
He succeeds Siegfried Bülow, who built up
and developed the production site over the
17 years of his directorship. Before coming to
Leipzig, Rupp spent seven years as the direc-
tor responsible for tool construction for the
Volkswagen brand in Wolfsburg after working
for Audi AG in Ingolstadt and Barcelona.
Siegfried Bülow stepped down due to reach-
ing retirement age.
Minister President tours production
Winfried Kretschmann, Minister President of
the State of Baden-Württemberg, praised the
new engine plant in Zuffenhausen on a visit in
July. "The newly built engine plant is exemplary
in many respects," he said. "The prudent and
forward-looking management of inner-city
spaces fosters sustainability, and the involve-
ment of nearby residents shows transparency.
These are all important steps toward becoming
a role model for climate-friendly mobility."
Kretschmann was also given his first view of
pilot production for Porsche's electric drives.
12
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance Important events
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
13
Porsche appeal for US customers
In July Porsche took first place in the overall
rankings of the "Automotive Performance,
Execution and Layout Study" (APEAL) from
the US-based J.D. Power market research
institute for the 13th time in a row. It remains
the automotive brand with the greatest ap-
peal for drivers in the US. The 911, Cayenne
and Macan also took top honours in their
categories. The survey asked more than
69,000 owners of new cars to evaluate
243 models from 33 carmakers in ten cat-
egories. In addition to driving dynamics
and design, the criteria included everyday
practicality and comfort.
92
Porsche unveils the
911 GT3 with Touring
Package at the IAA -
designed for fans of
high-calibre sports cars
with a real predilection for
understatement and
classic driving pleasure.
World premieres at the IAA: 911 GT3 with Touring Package and Cayenne Turbo
Two cars celebrated world premieres at the International Motor Show in Frankfurt am Main (IAA).
The 911 GT3 with Touring Package joins the ranks of Porsche's purist high-performance sports
cars. It is designed for fans of high-calibre sports cars who have a strong predilection for under-
statement and classic driving pleasure. The new Cayenne Turbo is the flagship of its model line.
This newly developed member of the Cayenne's third generation raises the standard for
sports-oriented performance in its segment even higher.
PORSCHE
S GO 5026
OO
MACAN
S.GO 6300
New engines, a new chassis,
an innovative operating
concept and greater
connectivity all feature in
the new Cayenne presented
by Porsche in Zuffenhausen
in August. The third
generation is a completely
newly developed version
of this successful car which
boasts sales of over
770,000 since 2002.
WORLD PREMIERE OF THE NEW CAYENNE
Recall for around 21,500 Cayenne Diesels
In agreement with the German Federal Motor
Transport Authority (KBA), Porsche recalled
Cayenne 3.0-litre V6 diesel cars in the EU6
emissions class. During internal investigations,
the company found irregularities in the engine
control software and actively passed on these
findings to the KBA. A software update in
connection with a recall was agreed upon with
the transport authority. This affects around
21,500 cars made from 2014 to 2017 in
Europe, including 6,000 in Germany. Porsche
is bringing the cars to workshops for the
free software update.
THIS CHART
Performance.
S.GO 2986
Sustainability Report
of Porsche AG
2017
52
Employees
60
116
118
Key figures for environment and energy
120
Key figures for personnel and social matters
122
Further information
124
The Supervisory Board
126
50
Emission and consumption information
GRI Content Index
About this report
Porsche AG Group - brief overview
Auditor's report by the independent auditor
130
134
136
២ ២៩ ៩៩៩ ៩៩ 8 ន៩៩ ៩៩៩៩ 8388E 29នន នននននន ៖
68
76
78
82
Annual and
128
Employees, society, sport
133
Our way-management approaches in our action areas
PORSCHE
40
Performance.
Living sustainably is an overarching strategic
target for Porsche. For us, economic success,
ecological awareness and social responsibility
are not contradictions. On the contrary, when
combined, they form a whole which defines
the company's attitude
Economic success distinguishes Porsche - as
does social compatibility. Precisely as a manu-
facturer of exclusive, high-performance sports
cars, Porsche regards itself as being obliged
to enhance the acceptance of the company and
its products worldwide by means of socially
and ecologically responsible action. Respon-
sible action which benefits not only the
company but also the environment and society
is not just in line with the expectations of
customers, business associates or investors;
it also has great significance for ensuring
competitiveness.
That's why Porsche is combining the Financial
and Sustainability Report. We are sending
out a message by doing this - namely that the
two topics are inseparably connected.
You have before you two volumes: Perspective
is intended to inspire, stimulate and motivate
you to confront, challenge and familiarise
you with the topics and theories that an auto-
motive company like Porsche must address in
times of industrial system upheaval.
What will identity mean in future? This is the
overriding question which Porsche already
has to consider today. Alongside inspiration
is information about Porsche's philoso-
phy in the interplay between digitalisation,
connectivity and electrification.
Volume Two is entitled Performance. It con-
tains all the events of the 2017 financial year.
Here, you can find developments, summaries,
explanations, key figures - and the documen-
tation of Porsche's overarching sustainability
commitment in all its aspects.
As different as the two volumes are, they have
one thing in common: communication on vari-
ous levels. In keeping with this, some articles
offer the possibility of augmented reality. You
can find references to this on the relevant
pages - as well as some surprises.
Letter from the Executive Board of Porsche AG
Important events
Society
Sport
Economic power, innovative vehicles, custom-
er orientation, environmental protection and
employee responsibility - Porsche sets the
highest standards, and aims at continual and
long-term improvement in all these areas.
28
34
30
Sustainability strategy and sustainability management
Strategy and organisation
Stakeholder management
26
18
Outlook
Business performance
Net assets
Financial analysis
Sales
Production
Procurement
Sales, production, procurement
Research and development
Russia: Macan remains popular
Porsche supplied 4,578 new vehicles in the
Russian market in 2017. The best-selling
model was the Macan, its 1,923 units
representing growth of 11 per cent. 1,703
deliveries of the Cayenne were recorded.
The Panamera achieved the greatest growth,
with 633 units. And the 911's 195 units
put it ahead of the 718 Boxster and Cayman
(124 vehicles, +5 per cent).
record result for new Panamera
Northern Europe:
In Scandinavia the positive development of
recent years was continued in 2017 with
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance - Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
24
a 12 per cent increase. The major contributor
was the new Panamera, with triple-digit
growth resulting in a record figure of 747 vehi-
cles delivered. The best-selling model remains
the Macan, with 1,062 units. The iconic 911
sports car also achieved a new annual record
of 488 vehicles. Customers took receipt of 455
units of the Cayenne, while the 718 Boxster
and Cayman sold 203 units.
South Korea:
China: up ten per cent
For the second year in a row, China is Porsche's
biggest sales region in the world. Deliveries
grew by ten per cent, from 65,246 vehicles
in the previous year to 71,508 vehicles
in 2017. The 718 Boxster and Cayman mid-
engine sports cars registered 148 per cent
growth to 5,998 vehicles. The Panamera sold
6,258 units (+22 per cent), while the Cayenne
increased its sales by 19 per cent to 26,398
units. The 911 (including the 918 Spyder) sold
1,674 new vehicles for a 12 per cent rise.
The best-selling model on the Chinese market
remains the Macan, with 31,180 units. In
November, the first Porsche Studio was
opened in Guangzhou, the 100th sales point
in the People's Republic of China. The Porsche
Studio is a digital showroom concept that
will feature increasingly in city-centre locations
in the future.
Japan: stable performance
Porsche stabilised its previous year's record
growth in 2017, with 6,808 deliveries (2016:
6,745 vehicles). Of these, the Panamera
contributed 868 vehicles, or 120 per cent
growth, while the 911 increased by nine
per cent to 1,543 units. The 718 Boxster and
Cayman also maintained their popularity of the
previous year with a total of 1,374 vehicles
sold. The best-selling model remains the
Macan, with 2,378 units. And customers also
received the keys to 868 units of the Cayenne.
high demand for the 718 Boxster and Cayman
Porsche delivered 2,600 cars in South Korea
in 2017. Sales of the 718 Boxster and Cayman
almost doubled to 780 units (+91 per cent).
The 911 also improved by 35 per cent to 482
vehicles delivered. South Korea's best-selling
model though was the Cayenne, 928 of which
were sold. Customers took receipt of 219
units of the Macan, while the Panamera sold
191 units.
Asia-Pacific: the 718 up by 90 per cent
From its regional head office in Singapore,
Porsche sold 5,390 vehicles in the Asia-Pacific
region (which includes Taiwan as a separate
market from 1 January 2018). The Macan
remains the best-selling model, with 2,375
units delivered. In second place is the Cayenne,
with 1,377 vehicles. Growth of 90 per cent
was registered for the 718 Boxster and Cayman,
678 of which were sold. They were followed
closely by the Panamera, which sold 593 units.
There were 367 sales of the 911.
22
25
22
Asia
OUTLOOK
Automotive market development
Porsche AG forecast 2018
In our plans we have allowed for a slight
slowdown in growth in the world economy in
2018. Protectionist tendencies, volatility in
the financial markets and structural deficits in
some countries are all potential sources of
risk, while geopolitical tensions and conflicts
will further impact the prospects for growth.
We therefore anticipate that both developed
economies and emerging markets will ex-
perience somewhat weaker levels of growth
than in 2017. We expect the highest growth
rates to be recorded in the emerging national
economies of Asia.
Brazil
Performance Important events
The market volume for Western
Europe will be slightly below the
reporting year's figure.
Western Europe
Growth in China will persist in
comparison with the previous year,
albeit slightly weaker. Entry-level
SUV models are expected to remain
very popular.
China
Following the positive development
of recent years, the German
passenger car market will stabilise
at the level of the previous year.
Germany
Demand for passenger cars and light
commercial vehicles will fall slightly
in North America. Models in the SUV
segment are expected to remain
popular.
North America
in particular are expected to
remain very popular.
Demand in China will increase
further in line with the rising
demand for individual mobility.
However, we anticipate a
slight weakening in growth rates
compared with the previous
year. Entry-level SUV models
In 2018 Porsche AG expects the high levels of
deliveries and revenue to stabilise compared
with the 2017 financial year. This expectation
is based on Porsche's attractive product range,
in particular the new-generation Cayenne,
which will be introduced to all markets around
the world in 2018, and the Panamera. Despite
the very high investment in vehicle projects
and innovative technologies, as well as in the
expansion and renovation of sites, measures
are in place to ensure that Porsche AG's lofty
revenue requirements will continue to be met.
These measures comprise making continual
improvements to productivity, enforcing strict
cost management and tapping new revenue
sources from innovative future technologies.
Development forecast
individual mobility. However, we anticipate a
slight weakening in growth rates compared
with the previous year. Entry-level SUV
models in particular are expected to remain
very popular.
further in line with the rising demand for
Mixed fortunes on the automobile markets
We are expecting to see differences in how the
world's regional markets for passenger vehicles
perform in 2018. Our plans for western Europe
assume that market volume in 2018 will be
slightly down on the level achieved in the year
under review. Following a positive performance
in recent years we expect the German passen-
ger car market to stabilise at last year's level in
2018. Demand for passenger cars and light
commercial vehicles up to 6.35 tonnes will fall
slightly in the US and in North America as a
whole according to our forecasts. However,
demand for models 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 vol-
umes in 2018 following the already strong
performance of the past year. The passenger
car markets of the Asia-Pacific region will
continue to grow in 2018, but, we predict, at a
weaker rate. Demand in China will increase
in 2018, with somewhat higher growth than in
the year under review. The Chinese economy
will continue to grow at a relatively high level
in the coming year, although our plans antici-
pate that this growth will be less dynamic than
in previous years.
to announce further interest rate hikes over
the course of the year. In Brazil, our forecasts.
show the economy should stabilise further
in 2018, and we expect the US Federal Reserve
Our forecasts indicate that economic growth
will slow down in western Europe in 2018,
compared with the year under review. The
question of how to resolve structural problems,
not to mention the uncertain outcome and
impact of Brexit negotiations, will present major
challenges. In Germany we expect GDP
growth in 2018 to be lower than in the report-
ing year. The labour market looks set to remain
stable, continuing to support private con-
sumption. We anticipate a continued improve-
ment in the economic situation in the US
Possibility of lower growth
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
97,202
Middle East, Africa and India: Cayenne ahead,
Macan enjoys strong demand
Capital expenditure (TK Auto)
billion
Capital expenditure (vehicles business)
grew by 19 per cent.
Macan sales
The best-selling Porsche model
was the Macan, with growth of
around 2 per cent.
€4.14
billion
Operating profit
Operating profit rose by 7 per cent.
€1.68
246,375
Overall, we delivered 4 per cent more
Porsche vehicles than in the previous year.
billion
Research and development costs
Our R&D costs climbed by
5 per cent.
27,942
Panamera deliveries
We delivered around 83 per cent more units of the
Panamera model compared with the previous year.
24
In Brazil, volumes are anticipated to
increase noticeably again in 2018,
after a strong improvement in the
reporting year.
Deliveries of new vehicles
to previous year.
Group sales revenue
Increase of 5 per cent compared
€23.49 bilion
In the reporting year, Porsche delivered 6,381
vehicles and enjoyed success despite difficult
conditions. The best-selling model with 2,122
units remains the Cayenne, followed by the
Macan (1,786 units), whose figures improved
by 50 per cent. The biggest growth was
achieved by the Panamera, demand for which
rocketed by 116 per cent to 742 units,
Customers took receipt of 992 units of the
911, while the 718 Boxster and Cayman
mid-engine sports cars sold 739 units.
Australia/New Zealand:
stability in an eighth record year
For an eighth record year, deliveries in Australia
and New Zealand stabilised at the previous
year's level. The Macan was the highest-selling
model, with 2,660 units of the total 4,871
vehicles delivered, representing a 13 per cent
increase. The Cayenne sold 1,224 units, while
the 911's 477 vehicles sold put it roughly on
a par with the previous year. The mid-engine
718 Boxster and Cayman sports cars sold
382 units. The highest percentage growth was
achieved by the Panamera, demand for which
rocketed by 161 per cent to 128 units.
The Group's healthy
cost base and sustained
high profit capability
are reflected in the key
earnings indicators. As
a result, the Porsche AG
Group achieved an
operating profit margin
of 17.6 per cent in
the reporting year
(2016: 17.4 per cent)
Porsche
financial year 2016
in figures
Figures relate to Porsche AG Group
29,777
Employees
Our global workforce expanded
by some 8 per cent.
17.6%
Operating profit margin
The profit margin rose from 17.4 per cent
in the previous year to 17.6 per cent.
23
Asia-Pacific
€2.32m
26
Sustainability
experts/
networks
Cultural
institutions
35
EXTERNAL
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 author-
ity on sustainability, meeting twice annually
as the Sustainability Board. These meetings
set the basic strategic direction and also
decide on the realisation of lighthouse projects
and far-reaching sustainability measures. The
sustainability team of the Policy and External
Relations department acts as an interface
for all aspects of sustainability within the busi-
ness. It is delegated with the coordination
of all sustainability activities, implementa-
tion of the sustainability strategy, reporting,
and integration with the Volkswagen Group's
group-wide sustainability activities. Fur-
thermore, it ensures 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 making
appropriate proposals to the Executive Board.
It encompasses members from all departments
across the company and meets four times
each year. The standing members of the Expert
Group represent specialist sustainability-
related units within all departments in the
company, where they act as multipliers for
sustainability topics.
The Porsche Sustainability Advisory Commit-
tee, formed in 2016, met the Executive Board
of Porsche AG on two occasions in 2017.
The committee is composed of internationally
renowned representatives from the scientific
and public communities (Prof. Sonja Peterson,
Prof. Lucia Reisch, Prof. Maximilian Gege,
Prof. Ortwin Renn and Prof. Klaus Töpfer) and
acts as an idea generator and driver for change
related to sustainability. This cooperation will
be further deepened in 2018.
A transparent internal
structure with defined
roles and responsibili-
ties allows sustainability
topics to be handled
rigorously and effec-
tively throughout the
business. The Executive
Board of Porsche AG
acts as the highest
authority on sustainabil-
ity, meeting twice
annually as the Sustain-
ability Board.
Porsche Strategy 2025
Sustainability management
Set direction for sustainability
Sustainability Advisory Committee Advisers, drivers
I
Student
initiatives
Porsche Executive Board Sustainability Board (2x annually)
Universities/
colleges
34
Trade unions / associations
Kraftfahrtbundesamt
(German Federal Motor
Transport Authority)
Communal/
Internal
city administrations
at site locations
Customers & residents
Business &
Customers
Product
Responsibility
Porsche
Employees &
Society
Environment &
Energy
Politicians & authorities
EU institutions
State Parliaments/
Federal Parliament
State ministries/
Federal ministries
Porsche
Centres
Business partners
Social partners
Suppliers
Science
Schools
Social initiatives
Sport associations/
sport clubs
Performance - Sustainability strategy and sustainability management
Monitor reporting
Sustainability Expert Group
(4x annually)
- Development of strategic aims and
statements on sustainability
Vehicle safety■
Fuel consumption and vehicle emissions
Long-term customer relationships
Materials and sustainable materials
Long-term
economic stability
■New mobility concepts
Responsibility in the supply chain
Digital transformation
Compliance
Attractive
employer
Resource consumption
during production
Social
engagement
Conservation & biodiversity
Contribution to regional
development & infrastructure
Sustainability communication &
stakeholder dialogue
Business relevance for Porsche
Equality of opportunity and equity
Corporate co-determination
High impact
Medium impact
Low impact
38
Performance - Sustainability strategy and sustainability management
39
Our stakeholders
Environmentally compatible logistics
Occupational health and safety
Energy and emissions during production
Staff development
Stakeholder relevance
- Define indicators and lighthouse projects
- Set content of sustainability reporting
Core Sustainability Team
Interface for relevant topics
36
Specialist departments & committees
- provide representatives for Sustainability Expert Group and inform them about current topics
- provide data for Sustainability Report
Performance - Sustainability strategy and sustainability management
INTERNAL
37
MATERIALITY ANALYSIS 2017✓
Industry (VDA))
(GRI 102-40, 102-42, 102-43, 102-44,
102-46, 102-47, 102-48, 103-1)
More than two-thirds of those surveyed re-
ported being "very satisfied" or "satisfied" with
Porsche's sustainability efforts. This repre-
sents an improvement of twelve percentage
points compared with the previous survey.
It revealed that 89 per cent of respondents do
not see any conflict, generally speaking, be-
tween sustainability and the manufacture of
premium sports cars. More than half of
participants (58 per cent) stated that their
impression of Porsche was "hardly" or "not
at all" affected by the diesel affair. Just under
a third (29 per cent) felt it was actually a
concern, however. All stakeholder groups
expect open, honest and transparent commu-
nication on this matter as well as a clear
response to the challenge of low-emission,
sustainable mobility. On the whole, respond-
ents prioritised the themes "vehicle safety",
"fuel consumption and vehicle emissions" and
"long-term customer relationships".
The members of the Sustainability Advisory
Committee also had the chance to provide
detailed feedback on sustainability at Porsche
and opportunities and risks during individual
expert interviews. They presented specific
recommendations for action to further shape
Porsche's engagement. Topics including
"alternative drives", "reduction in corporate
CO₂ emissions" and "expansion of the charging
infrastructure" were central to their suggestions.
The impetus generated by the members of
the Sustainability Advisory Committee will be
maintained by means of deeper integration
into the company's sustainability management
and an expansion of external stakeholder
engagement in the future.
MATERIALITY MATRIX AND
REPORTING 2017 V
(GRI 102-44, 102-46, 102-47, 103-1)
Porsche's impact on the environment, em-
ployees and society was investigated by
members of the Sustainability Expert Group
and representatives from the company's
relevant specialist units during an internal
workshop.
In accordance with the Global Reporting
Initiative (GRI) standards, topics that are
material for reporting in 2017 are those that
are highly relevant for stakeholders and
themes with medium and high impact: vehicle
safety, vehicle fuel consumption and emis-
sions, long-term customer relationships,
materials and sustainable materials, energy
and emissions during production, long-term
economic stability, new mobility concepts,
staff development, occupational health and
safety, environmentally compatible logistics,
resource consumption during production,
attractive employer, responsibility in the
supply chain, digital transformation, compli-
ance, and corporate co-determination.
The survey revealed
that 89 per cent of
respondents do not see
any conflict, generally
speaking, between
sustainability and the
manufacture of
premium sports cars.
Materiality Matrix ✓
(GRI 102-44, 102-46, 102-47, 103-1)
An anonymous international online stakeholder
survey was conducted in autumn 2017 to
investigate the thoughts and expectations of
7,200 representatives of relevant groups on
sustainability at Porsche. The survey therefore
targeted three times as many people as in
2015. Responses were received from some
950 people including customers (67.3 per
cent), business partners and analysts/investors
(7.5 per cent), politicians and public authori-
ties (4.8 per cent), NGOs (3.0 per cent),
Porsche employees (2.7 per cent), academics
(2.4 per cent) and other participants (12.3 per
cent), including participants from China and
Great Britain for the first time.
The passenger car markets of the
Asia-Pacific region will continue to
grow in 2018, albeit at a lower rate.
Verband der Auto-
mobilindustrie e.V.
(German Association
of the Automotive
IG Metall
(industrial union)
Co-determination
Occupational safety
Health & care
Employees &
Society
Social Engagement
Projects supported
Corporate citizenship
Corporate volunteering
Sponsorship
Brand ambassador
Memberships
Porsche
Product
Responsibility
Environment &
Energy
Sites & Infrastructure
Sustainable Construction
Environmental protection &
biodiversity
Operational mobility management
Infrastructure projects
Services
Maintenance & repairs
Recycling & reuse
New mobility concepts
Connectivity
Charging infrastructure
Operating Environment/
Energy Management
Resource efficiency
Energy & emissions
Logistics processes
Waste & disposal concepts
Hazard management
STRATEGY AND ORGANISATION
(GRI 102-46)
Sustainability is an entrepreneurial duty.
Society as a whole, our customers, investors,
the media and politicians all expect us to do
business responsibly, for the good of the envi-
ronment and the community. Doing business
sustainably is also becoming increasingly im-
portant to our remaining competitive in our
business environment. Social responsibility,
economic success and efficiency are not
conflicting ideals. These tenets form the basic
components of successful, forward-looking
business leadership.
Sustainability is a top priority for Porsche
when it comes to strategic perspectives. The
Chairman of the Executive Board holds direct
responsibility for sustainability, underscoring
the importance that Porsche attaches to it.
Since 2016, sustainable action in combination
with strengthening our capacity for innovation
has been a core objective of the Porsche Strat-
egy 2025. Porsche demands that all the parts
of its business act sustainably and responsibly.
Sustainability is a theme that is relevant across
all departments. It is anchored permanently
in processes and projects, structured in the four
core action areas "Business & Customers",
"Product Responsibility", "Environment &
Energy" and "Employees & Society".
Porsche consolidated the sustainability mea-
sures anchored in its strategy in 2017. The
company's own audits and similar activities
improve on the implementation controls im-
posed in respect of the sustainability require-
ments made of suppliers. Since the start of
2017, Porsche AG and its subsidiaries Porsche
Logistik GmbH and Porsche Leipzig GmbH
have been using 100 per cent green energy.
In terms of its financial strategy, Porsche
is developing criteria that take account of
sustainability aspects in long-term investment
decisions. In 2017, strategic importance
was given to identifying potential for improve-
ment using external sustainability ratings.
Working together with specialist units from
within all company departments, the core
sustainability team analysed and developed
additional short-, medium- and long-term
improvement steps along the entire value
chain. These activities not only underline the
significance of sustainability for the company
as a whole, but also encourage individual
employees to take their own initiatives in this
direction. For example, enterprising employees
in Aftersales have developed their own set
of measures for working in harmony with
environmental and social objectives in twelve
action areas.
During the reporting year, Porsche amended
its own system of directives and committees.
The Porsche Environment and Energy Cockpit
became a steering committee. In addition,
the first steps have been taken towards organ-
ising the pan-company "Sustainability Expert
Group", which will be expanded to cover
the relevant German subsidiary companies.
The Group Sustainability Directive is being
revised for publication in spring 2018. It will
provide group-wide, binding rules on the
fundamental processes underlying organisa-
tional structure, topic management, project
implementation, and communication and
reporting for all sustainability topics. In this
way, Porsche is seeking to achieve even
broader and more rigorous sustainability
implementation within the company.
Details on the organisation and content of
sustainability efforts at Porsche, and on the
principles and directives, can be found online
in the "Sustainability" section of the Porsche
Newsroom website: newsroom.porsche.com.
Diversity & equality
Porsche consolidated
the sustainability
measures anchored in
its strategy in 2017.
The company's own
audits and similar
activities improve on
the implementation
controls imposed in
respect of the sustain-
ability requirements
made of suppliers.
Since the start of 2017,
Porsche AG and its
subsidiaries Porsche
Logistik GmbH and
Porsche Leipzig GmbH
have been using 100 per
cent green energy.
Work-life balance
Corporate culture & values
26
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance - Important events
27
Sustainability strategy and sustainability management
Strategy and organisation
Stakeholder management
Our way - management approaches in our action areas
30
Porsche Strategy 2025
Sustainability action areas
Corporate Governance
Compliance & integrity
Risk management
Economic stability
Sustainable investments
Political & social dialogue
Product Development
Hybridisation & electric mobility
Efficiency improvements
Consumption & emissions reduction
Product safety
Sustainable materials
Durability & quality
Business Partners & Customers
Responsible supplier management
Dealership sustainability initiative
Long-term customer relations
Digitalisation & data protection
Business &
Customers
Responsible Employer
Education & training
Performance - Sustainability strategy and sustainability management
31
32
Dialogue with external stakeholders
(GRI 102-40, 102-43, 102-44, 102-47,
102-48)
A range of communication channels and event
formats support Porsche's engagement with
external stakeholders. The Porsche magazine
Christophorus is published in eleven languages
around the world. The community newspaper
targa-Nachrichten für die Nachbarn (targa,
the residents' journal) addresses local residents
who live in proximity to Porsche's sites. The
online newsroom with its Twitter and Instagram
channels, the web-based TV channel 9:11
Magazin and the Porsche website are all exam-
ples of key sources of information for thought
leaders, decision makers and customers.
Porsche also seeks to address stakeholders
personally. Three events in 2017 provided
progress updates on construction projects at
Porsche sites. For the first time these included
the communities of Weissach and Mönsheim
in the immediate vicinity of the Porsche Devel-
opment Centre. More than 500 interested
locals took the opportunity to find out about
how work was progressing, ask questions,
make suggestions and voice their opinions.
Cooperating in networks and engagement in
sustainability initiatives also form part of
our stakeholder dialogue. Since 2016, Porsche
has been a member of the Bundesdeutscher
Arbeitskreis für Umweltbewusstes Manage-
ment e.V. (B.A.U.M. - German Environmental
Management Association). In 2017, Porsche
joined the German Business Ethics Network
and became a signatory to the state of
Baden-Württemberg's WIN! charter for sus-
tainable business, marking its commitment
to economic, environmental and social respon-
sibility. The company engages in dialogue
with local politicians through an "inter-munici-
pal working group". In 2017, Porsche organ-
ised sustainability workshops for selected
suppliers for the first time. Participants in these
events discussed new approaches to collabo-
ration on sustainability aspects.
The Porsche Sustainability Advisory Commit-
tee, formed in 2016, met the Executive Board
of Porsche AG on two occasions in 2017.
The committee is composed of internationally
renowned representatives from the scientific
and public communities (Prof. Sonja Peterson,
Prof. Lucia Reisch, Prof. Maximilian Gege,
Prof. Ortwin Renn and Prof. Klaus Töpfer) and
acts as an idea generator and driver for change
related to sustainability. This cooperation will
be further deepened in 2018.
Dialogue with internal stakeholders
(GRI 102-40, 102-43, 102-44, 102-47)
Transparency, featuring open and direct
communication, is a major component of
Porsche's day-to-day corporate culture.
Employees have a wide range of opportunities
to learn about the company's activities and
latest developments, for example through the
employee magazine, local site newsletters,
the inhouse TV channel and also the intranet.
Since 2017 employees have been able to
download an app to use 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. In 2018 a week
dedicated to the topic of sustainability will
aim to raise employee awareness on the sub-
ject even further.
Porsche encourages its employees to con-
tribute their own ideas through its internal
ideas and innovation management set-up.
Complaints and personal concerns are treated
in confidence where requested. The Porsche
ombudsman system receives anonymous
complaints and reports on any illegal behaviour
in relation to the company. In 2017, more
than 18,000 employees took part in the mood
barometer (Employee Opinion Survey),
which questioned Porsche employees along
with those at subsidiaries.
Porsche engages in
two-way conversation
with relevant stakeholder
groups and continuously
strengthens this
dialogue. In addition, in
2017 the company
expanded its stakeholder
management in relation
to sustainability themes
and added a further
international dimension
to it. For example, the
regular stakeholder
surveys were extended
to take in the Chinese
and British markets,
and direct dialogue with
key suppliers was
strengthened through
the organisation of
workshops.
In a mixed market environment characterised
by geopolitical risks, Porsche delivered
6,185 vehicles to customers, registering growth
of 11 per cent to achieve its eighth consecu-
tive annual record. The biggest markets
continue to be Poland (1,535 deliveries) and
Turkey (676 deliveries). The best-selling model
was the Macan, the 2,617 units of which
represented growth of three per cent. In sec-
ond place in the popularity ranking was the
Cayenne, which sold 1,603 units. The Panamera
came next with 1,048 vehicles - a significant
increase. Demand for the 718 Boxster and
Cayman models grew strongly, up 18 per cent
to 350 vehicles. The 911 recorded delivery of
567 units (+3 per cent).
(GRI 102-40, 102-42, 102-43, 102-44)
The most important internal and external stakeholders for the company,
established on the basis of internal analysis.
Residents at
Porsche
Clubs
Individual
Porsche drivers
site locations
Volkswagen
Group
Works
Council
Employees
Südwestmetall
(Baden-Württemberg
employer's association)
Porsche engages in two-way conversation
with relevant stakeholder groups and continu-
ously strengthens this dialogue. In addition, in
2017 the company expanded its stakeholder
management in relation to sustainability themes
and added a further international dimension
to it. For example, the regular stakeholder
surveys were extended to take in the Chinese
and British markets, and direct dialogue with
key suppliers was strengthened through the
organisation of workshops.
(GRI 102-40, 102-42, 102-43,
102-44, 102-46)
STAKEHOLDER MANAGEMENT
Start-ups/
partnerships
Sustainability in the Porsche Strategy 2025
Shaping the future of the sports car - this
is the theme of Strategy 2025. In 2016,
the workforce and the management came
together to develop a new corporate strategy
for the next decade. Their deliberations
focused on the prospective product portfolio.
The sports car of the future combines the
tradition and values of the Porsche brand with
innovative technologies and sustainability.
Themes such as electromobility, digitalisation
and connectivity play a major role. The com-
pany makes it its business to define the ex-
clusive sports mobility of tomorrow. Its main
objective is to achieve value-generating
growth. This is the only way Porsche can make
sustainable investments in innovative tech-
nologies, in new products, and in its team.
Porsche excites customers with its unique pro-
ducts and services. The company wants to
further cement its reputation as an excellent
employer and business partner that fulfils
its social and environmental responsibilities.
Profitability, efficiency and social responsibility
are not conflicting aims for Porsche.
Throughout their activities, all of the compa-
ny's departments, from Development to Sales,
will pay close attention to sustainability and
ensure that it is driven forward. Consequently,
all departmental strategies will incorporate
sustainability in relation to both targets
and projects. Examples of this include specific
measures to increase sustainability in the
supply chain, to improve products' environmen-
tal credentials throughout the life cycle and
to further integrate sustainability into key
company processes such as risk management.
All corresponding topics are structured in
accordance with the four central sustain-
ability action areas at Porsche, as well as in
the additional work packages "Integration
in Processes" and "Communication and Stake-
holder Dialogue". The sustainability team in
the Policy and External Relations department
is responsible for the further definition and
measurement of content and ongoing imple-
mentation of the cross-cutting issue of
sustainability, working alongside the individual
managers in the specialist company units.
The company wants
to further cement its
reputation as an excellent
employer and business
partner that fulfils its
social and environmental
responsibilities. Prof-
itability, efficiency and
social responsibility
are not conflicting aims
for Porsche.
Porsche Strategy 2025
Chambers of
Industry & Commerce/
Chambers of Skilled
Trades & Crafts
Targets
and business partner
Inspiring customers with
a unique product
and brand experience
2025
Value-generating
growth
Innovation and sustainable
business practices
Performance - Sustainability strategy and sustainability management
Excellent profitability:
ROS> 15%
33
Excellent employer
11 per cent growth
2013
of four per cent.
237,778
246,375
189,849-
225,121
161,982
of new vehicles
Deliveries
50
100
150
200
250
of 83 per cent.
the world in 2017,
exceeding the record
achieved in 2016 by
another four per cent.
The new Panamera has
made a significant
contribution here with
some 28,000 units sold,
a year-on-year increase
0
Porsche delivered
246,375 vehicles to
customers around
Strong European demand for hybrid models
On the European market, Porsche achieved a
solid result, recording slight growth in deliver-
ies of two per cent. A significant contribution
to this result was made by the Panamera, new
vehicle deliveries of which rocketed from
3,831 in the previous year to 11,539 units in
2017. The introduction of the new Panamera
4 PHEV and Panamera Turbo S E-Hybrid in
June 2017 means that now more than half of
the Panamera models delivered are powered
by a hybrid power train. The Macan series em-
phasised its position as the brand's best seller
in the year under review: the 29,575 vehicles
delivered equates to growth of six per cent.
Customers took receipt of 15,721 units of the
911 and 14,547 of the Cayenne, while the
mid-engine 718 Boxster and Cayman sold
8,880 units in total.
The Porsche subsidiary in Brazil once again
exceeded its previous year's performance,
in its third year of operation. Deliveries rose
by 11 per cent to 1,124 vehicles. The largest
volumes were achieved by the Macan (407
units) followed by the Cayenne (294 units).
Strongest growth was recorded by the
Panamera with 72 vehicles delivered and the
911, which sold 198 units, or 39 per cent
more year-on-year. The 718 Boxster and
Cayman recorded sales of 153 vehicles,
largely on a par with the previous year.
Brazil's stellar trajectory
The Cayenne recorded 921 sales, and the
718 Boxster and Cayman sold 333 units in all.
sold 506 units for an increase of two per cent.
During the reporting year, 2,921 new vehicles
were delivered in Central and South America
(excluding Brazil) and the Caribbean. The
strongest market was Mexico, where 1,506
new vehicles were sold, recording sustained
strong demand in an otherwise volatile region.
The Macan was once again the top-selling
Porsche model, with 969 units sold during the
year. Demand for the Panamera rocketed by
156 per cent to 192 units, while the 911
South America: 911 and Panamera
rising stars
In December 2017, Canada recorded the
72nd consecutive monthly improvement on
the previous month's delivery figures. Over
2017 as a whole, Porsche achieved 17 per
cent growth year-on-year, delivering a record
8,249 vehicles for the year. The highest-sell-
ing model remained the Macan (3,767 units),
while the Panamera (559 units) and 911
(1,234 units) recorded the strongest growth
of 86 per cent and 30 per cent respectively.
Customers took receipt of 2,079 units
of the Cayenne, while the 718 Boxster and
Cayman sold 610 units in total. In July,
Porsche celebrated the opening of its first
own branch in North America, the Porsche
Centre North Toronto.
Canada: 17 per cent up and 72 record
months in a row
Porsche delivered 55,240 vehicles to
customers in the United States in the
reporting year. This is the eighth year in a row
that Porsche has beaten its previous year's
record. The growth from 2016 to 2017 was
two per cent. The Macan once again claimed
top spot among Porsche's models, with
21,429 units sold. The Panamera sold 6,731
units, representing a hefty increase of 53 per
cent. The 911 hit the previous year's level
of 8,970 units (actually up one per cent). And
customers received the keys to 13,203
Cayenne cars. Deliveries of the 718 Boxster
and Cayman mid-engine sports cars amounted
to 5,087 units. In addition to demand for
the sports cars, the US market showed great
appreciation for the Porsche Experience
Centres in Atlanta and in Los Angeles, which
welcomed excellent combined visitor numbers
of over 92,000 in 2017.
US: new record results
America
For the second time in succession, China
was the strongest sales region; the 71,508 ve-
hicles sold there represented an increase of
10 per cent compared with the previous year.
Central and Eastern Europe:
Germany: Macan popularity continues
Porsche supplied 28,317 new vehicles in its
home market in 2017. With 8,414 units and
growth of four per cent, the Macan was once
again the most popular model, followed by
the 911 with 7,581 vehicles and the Cayenne
(5,000 units). The mid-engine 718 Boxster
and Cayman sports cars sold 3,364 units.
Deliveries of the Panamera more than doubled
to 3,958 units, of which 1,002 were hybrid
vehicles. In April 2017, Porsche opened a new
showroom format on the up-market North Sea
holiday island of Sylt, offering a special brand
experience. The aim of the concept is to reach
existing and new target groups more effec-
tively and to encounter them in their own world.
The "Porsche on Sylt" offer includes a show-
room with changing models on show, the
Porsche Drive car rental option, products from
Porsche Design and Porsche Driver's Selection,
a vehicle advisory service and a small
workshop. In addition, new digitalisation and
2014 2015
Europe
2017
France: another record year
Deliveries on the French market increased
by four per cent in 2017 to 5,822 vehicles.
As in the previous year, this equates to a new
record. The Macan was the highest-selling
model line, with 2,536 units also meaning
growth of four per cent. Sales of the 911
increased even more sharply, recording nine
per cent growth for delivery of 1,105 new
vehicles. The sales of the 718 Boxster and
Cayman were roughly on a par with the
previous year at 572 units. The Panamera
sold 702 units in France, putting it close
to level pegging with the Cayenne (907 units).
Since the introduction of the new Panamera
4 PHEV and Turbo S E-Hybrid in June and
July 2017, more than two-thirds of the
Panamera models delivered are powered by
a hybrid power train.
Belgium/Netherlands/Luxembourg:
strong Panamera performance
Porsche once again out-performed an im-
pressive previous year in the Benelux region,
with sales of 5,458 units for growth of two
per cent. Sales of the Panamera rocketed from
199 units to 1,259. The new hybrid variants
of this model were particularly popular. Since
the introduction of the new Panamera 4 PHEV
and Turbo S E-Hybrid in June and July 2017,
three-quarters of the Panamera models deliv-
ered are powered by a hybrid power train.
After the Macan (1,786 units delivered), the
Panamera is the second-most popular model,
followed by the 911 with 1,034 units.
Customers took receipt of 850 units of the
Cayenne, while the 718 Boxster and Cayman
sold 529 units together.
Italy: strong growth
Spain/Portugal: Panamera in second place
On the Iberian market, Porsche exceeded its
previous year's growth once again, with an
increase in deliveries of nine per cent to 3,054
vehicles. The strongest growth was achieved
by the Panamera. The 585 new units of this
model delivered during the year moved it
into second place in terms of popularity after
the Macan (1,214 units). The 718 Boxster
and Cayman (+49 per cent to 287 units) also
performed strongly, as did the 911 (+16 per
cent to 432 units). And customers also
received the keys to 536 units of the Cayenne.
Despite the continuing negotiations on the
United Kingdom's exit from the European Union,
2017 was a record year for Porsche Cars
Great Britain. The 14,267 vehicles delivered
equates to growth of seven per cent. Once
again, the Macan was the most popular model,
selling 5,854 vehicles for 27 per cent growth.
The British public have underlined their love of
Porsche's rear- and mid-engine sports cars.
The two-door 911 sports car recorded deliver-
ies of 2,245 vehicles while the 718 Boxster's
and Cayman's total deliveries of 2,626 units
even exceeded the figures for the Cayenne
(2,140) for the reporting year. 1,402 units of
the Panamera were delivered.
Switzerland: Cayenne and Panamera
neck and neck
model was still the Macan, with 1,516 units,
followed by the 911 with 876. The Cayenne
and Panamera were almost neck and neck
in terms of units delivered, at 493 and 487,
respectively. The 718 Boxster and Cayman
sold a total of 249 units on the Swiss market.
Austria: Panamera E-Hybrid model
sales grow strongly
Porsche delivered 1,312 new vehicles in Austria
in the reporting year. The strongest-growing
model was the Panamera, with 236 vehicles
sold. Since introducing the new Panamera
4 PHEV and Turbo S E-Hybrid in June 2017,
more than three-quarters of the Panamera
models delivered are now powered by a hybrid
power train. The Macan line recorded the
most units sold (470), followed by the 911 with
300 units. Customers took receipt of 187 units
of the Cayenne, while the 718 Boxster and
Cayman sold 119 units.
Deliveries on the French
market increased by
2016
four per cent in 2017 to
5,822 vehicles. As in
the previous year, this
equates to a new
record. The Macan is the
highest-selling range
here, with 2,536 units
representing growth
In Switzerland, Porsche delivered 3,621 new
vehicles to customers. The most popular
United Kingdom: British love rear-and
mid-engine sports cars
Political and economic uncertainty continued
to dominate Italy in 2017. Nevertheless,
Porsche was unaffected, repeating its year-on-
year growth. With deliveries of 5,534 new
vehicles, the brand achieved an increase of
seven per cent. The Macan was the high-
est-selling model, registering three per cent
growth to 2,640 deliveries in the year. It
was followed by the 911 with 938 deliveries
(+3 per cent). 848 units of the Cayenne were
sold, while mid-engine 718 Boxster and
Cayman sports cars also performed strongly,
with deliveries of these vehicles growing by
59 per cent. Demand for the Panamera rose
to 551 units.
21
Deliveries 2017
future mobility concepts are being piloted
at the showroom. The new Berlin Adlershof
Porsche Centre has also opened, and is
one of the most modern Porsche Centres
in the world.
Europe
80,262
America
67,714
98,399
and Middle East
Asia-Pacific, Africa
20
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance - Important events
Comparison to prior year
1+4%
a private accredited technical college that
offers programmes in software engineering,
interaction design and product management.
Right from the start, its students work on
their own projects in international and inter-
disciplinary teams in close cooperation with
companies and organisations. The Porsche AG
chair founded in 2013 at the Leipzig Graduate
School of Management has been extended
and its content adapted. Starting in 2018, it
will focus on strategic management and entre-
preneurship in the digital age. The Porsche
Automotive Campus programme at Nuertingen-
Geisling University (HfWU), which provides
scholarships for talented young people in the
automotive sector, has been extended for
two years. Relations with universities in other
countries are also being expanded on a con-
tinuous basis. Examples include an internship
programme at Tongji University in Shanghai
and joint projects with the IT department at
Babeş-Bolyai University in Cluj in Romania.
The basis for successful HR work continues to
be Porsche's sustainable positioning as an
attractive employer. Porsche supports numer-
ous initiatives to promote young talent, and
focused on digital talent and recruiting relat-
ed target groups in the reporting year. In the
high-profile employer rankings from Trendence
and Universum, the company again received
high marks from students in 2017. Reviews
by young professionals have been especially
positive. In the Young Professional survey
conducted by Universum, for instance, Porsche
rose in all categories and even took first place
among engineers. Applicant figures also show
the company's appeal as an employer, with
more than 150,000 applications submitted to
the Porsche Group in 2017.
In Silicon Valley, Porsche is working together
being further expanded, with a special empha-
Joint projects with leading universities are
Porsche also maintained partnerships with key
organisations to encourage young talent dur-
ing the reporting year. These included Formula
Student Germany, an international design
competition sponsored by the Association of
German Engineers (VDI), and Femtec, a pro-
gramme that encourages women to study
science and engineering. Porsche supported
students for the first time at the World Solar
Challenge in 2017, namely the Sonnenwagen
team from RWTH Aachen University. Covering
3,000 kilometres across Australia, the WSC
is the toughest and most important emission-
free automotive race in the world.
sis on digitalisation. Porsche is a partner of
the newly founded CODE University in Berlin,
Attractiveness as an employer, and working
with young talent
2016
UKA
53
0
Performance - Employees, society, sport
2017
2014 2015
ㄓˊ
2013
KU
54
One of the focuses of the reporting year was to
further develop the corporate culture. This was
prompted in part by the large increase in new
employees over recent years, and also by the
company's reorientation in the digital age
which has changed how people work together.
Members of the Executive Board Oliver Blume
Awarded for the 17th time in 2017, the Ferry
Porsche Prize recognises the top A-level stu-
dents from the state of Baden-Württemberg in
the core subjects of mathematics, physics and
technology. Some 212 young people received
the coveted prize. Six of them were also given
one-year scholarships, which were decided by
lots drawn at the awards ceremony held at
the Porsche Development Centre in Weissach.
It replaces the previous leadership guidelines
and describes the key dimensions of a shared
understanding of leadership.
27,612
The resulting corporate culture guidelines
were used to develop the Porsche Code.
The resulting cultural guidelines were created
containing the four elements of dedication,
pioneering spirit, sportiness and family. These
keywords define how employees envision
cooperation within the company. They also
show, however, how Porsche wants to shape
major trends in the automotive industry.
a version for the future. This meant determin-
ing the values that connect Porsche employ-
ees, and which direction the company's culture
must take to forge a distinct identity that
attracts and retains employees.
and Andreas Haffner and the Chairman of the
general Works Council, Uwe Hück, are the origi-
nal and ongoing sponsors of this focus. Work-
shops throughout the company took a bottom-
up approach to sketch the current state of the
Porsche corporate culture and compare it with
Porsche corporate culture
COOPERATION WITH CODE UNIVERSITY
The new Cayenne To
World Premiere.
Our strength:
Sportiness.
One family.
Porsche:
People
Dedication.
Our drive:
Pioneering spirit.
Our roots:
河
with Stanford University on an initiative that is
also expected to be expanded in 2018.
29,777
Porsche's success hinges on its employees -
their abilities, their dedication and their pas-
sion. They identify with and embrace the val-
ues and objectives of the company. At the end
of the reporting period on 31 December 2017,
Porsche AG employed 29,777 people. That
is an increase of nearly eight per cent over the
previous year. The company's rapid growth
also poses some major challenges, which can
only be met if everyone pulls together. This
makes constructive cooperation with the Works
Council, its committees and the IG Metall
trade union another important factor for suc-
cess. Collective wage and works agreements
above and beyond the legal requirements lay
a solid foundation for sustainable success,
benefitting the Porsche company, employees
and shareholders.
24,481
a company-wide platform called the My
and process optimisation. Porsche provides
A key part of Strategy 2025 and therefore also
of Porsche's HR strategy consists of digital-
ising the company's processes. Numerous
lean administration projects and consistent
further development of IT systems - always in
close cooperation with the Works Council and
in strict compliance with the highest data
protection and security requirements - have
led to major successes in digitalisation
Digitalisation
It invests in future-oriented training and talent
management in order to provide individual,
targeted and high-quality skills acquisition and
further development opportunities for every
employee. This is all the more important in a
world undergoing ever faster change and in-
creasing digitalisation. Porsche takes a modern
HR approach here by way of efficient processes
and interconnected IT systems.
The HR strategy provides the framework for
how Porsche works with its employees. They
are the heart of the company, and Porsche
wants to be an outstanding employer for them
not only now but also in the future. This ap-
proach is based on the unique corporate culture,
which always reflects Porsche's identity and
tradition. The company creates ideal framework
conditions for its highly motivated employees
by providing innovative working environments
that encourage high levels of performance.
HR strategy
The corporate culture guidelines and the
Porsche Code will be further developed
in 2018. Plans also call for leadership labs to
help management personnel prepare for future
challenges and internalise Porsche leadership
culture by means of critical reflection and ex-
ternal inspiration. The whole process is active-
ly supported and promoted by the Executive
Board and the employee representatives.
Porsche Cockpit for an array of personnel
and company-related processes.
EMPLOYEES
Society
Employees
Employees, society, sport
49
In this report, the topic of occupational health
and safety is covered by the provisions of the
Global Reporting Initiative found in GRI 403:
Occupational Health and Safety. This is meas-
ured and reported based on the following
key figures: number of accidents, work days
lost and cases of death, as well as the injury
rate. A survey is currently being performed
for Porsche AG and Porsche Leipzig GmbH;
expansion to the Porsche AG Group is planned
for the future.
All these joint efforts have enabled Porsche
to achieve a significant reduction in the injury
rate in recent years.
illness. The central processes are standardised
and regulated by the Group guideline on
occupational safety. This guideline repre-
sents an essential element of the company's
compliance management system and is
valid for all employees. The managers ensure
that their employees are familiar with the
specifications of this guideline and comply
with its provisions. Specialists in occupational
safety, Works Council members and works
doctors are available to all employees in an ad-
visory capacity. All employees of the company
are represented through the legally defined
representatives in the occupational safety
committees in accordance with the Occupa-
tional Safety Act.
Performance Sustainability strategy and sustainability management
Sport
Fit for Digit@l initiative
The objective of the Fit for Digit@l initiative
launched in 2017 is to instil and expand
shared trans-departmental digitalisation-
related knowledge and understanding at
Porsche. The aim is to promote awareness and
motivation for this transformation among
5
10
15
20
19,456
20
25
62
52
eight per cent over the
previous year.
an increase of nearly
period on 31 December
2017, Porsche employed
29,777 people. That is
end of the reporting
- their abilities, their
dedication and their
passion. They identify
with and embrace the
values and objectives of
the company. At the
hinges on its employees
Porsche's success
The Porsche learning platform introduced in
2017 is a key part of the HR digitalisation
initiative, and the main employee portal for
everything related to skill acquisition opportu-
nities both within and beyond individual
specialties. It shows all available training cours-
es and offers direct access to a wide range
of attractive and flexible online options. The
online possibilities on this newly created
platform supplement the proven brick-and-
mortar opportunities. The use of blended.
learning, for example, adds a targeted dimen-
sion to training programmes. Higher degrees
of transparency and connectivity - including
with subsidiary companies - raise collabora-
tive learning to a new level. Employees can
access their training histories, as well as shape
their desired learning strategies in active and
individual ways. This makes learning a self-
determined and integrated part of everyday
working life at Porsche - a key precondition
for the strategic goal of lifelong learning.
Porsche learning platform
all the employees. This includes gaining under-
standing and knowledge of the main purposes
and drivers of digitalisation and of the individ-
ual action areas at Porsche, which in turn is
intended to support sustainable development
of a Porsche digital mindset.
22,401
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
wktwerkstat
Needs-based and future-oriented training,
Other German
locations 331
10,602
Zuffenhausen
at locations in Germany
Employees
gether and collaborating
constructively.
by everyone pulling to-
At the reporting date
31 December 2017,
Porsche employed
26,506 people in
Germany. This is an in-
crease of seven per cent
over the previous year.
The company's rapid
growth also poses
Porsche major challenges,
which can only be met
Weissach
The company's growth also affects its provi-
sion of food services for employees. The
relevant infrastructure and offerings have been
further expanded, and new cafeteria concepts
developed for Zuffenhausen and Weissach.
A total of 2.6 million meals were provided at
Porsche sites in the reporting year.
The main processes are standardised and
regulated by the Porsche Group's occupational
safety guidelines. These guidelines are a key
component of the company's compliance
management system and apply to all employ-
ees. Managers make sure that their staff
members know the content and provisions.
Occupational health specialists, Works
Council members and company physicians
provide additional advisory services. This
led to a significant decrease of 12.7 per cent
in the injury rate from 2015 to 2017. With
5.5 accidents per million hours of work in
2017, Porsche AG and Porsche Leipzig GmbH
achieved its lowest accident rate ever.
Safe places of work are given the highest
priority at Porsche. An organised and
structured occupational safety and health
management system provides a targeted and
uniform approach and ensures compliance
with regulations. The aim is to prevent work
injuries and conditions as well as work-related
health hazards.
The Assembly department is running a pilot
project on how everyone can increase their
fitness for work station activities in concrete
and effective ways. The physiotherapy team
Pit Stop helps employees take individual pre-
cautionary steps in their everyday routines.
Porsche places a premium on preventing
health problems. The 23rd Porsche Health
Days were held in June and July 2017
under the motto of "A question of posture -
ergonomic tips for work stations". More than
2,000 employees at seven sites attended
and took part in electromyography tests to
assess muscular tension.
Health management and occupational safety
Healthy and capable employees are a pre-
condition for the success of any company.
Structured and step-by-step reintegration
management has enabled 250 employees
with long-term conditions to successfully
return to work promptly in ways that safely
accommodate their abilities.
When the law was passed, all of the Members
of the Executive Board with divisional respon-
sibilities were men, with contracts extending
over multiple years. The Supervisory Board
therefore decided not to adjust the Executive
Board target for 31 December 2017, and
confirmed the status quo of zero until 31 De-
cember 2021. However, the Porsche Super-
visory Board has set itself the aim of increasing
the percentage of women on the Executive
Board over the long term. For first- and second-
tier management, the Supervisory Board
specified targets of 15 per cent. The company
thereby seeks to nearly double its status quo
in these areas.
Targets for female members of the Supervisory
Board, Executive Board and management
To meet Germany's Law on Equal Participation
by Women and Men in Leadership Positions
in the Private Sector and Public Services,
targets were specified for the percentage of
women to be on the Supervisory Board, the
Executive Board and in first-tier management
at Porsche AG by 31 December 2021. Given
the long terms of its members, the Porsche
Supervisory Board confirmed the status quo
of ten per cent as its own target.
In late May Porsche took part for the first time
in Germany's annual Diversity Day. Under the
motto of "Promoting equal opportunities,
benefiting from diversity", the HR department,
Works Council and disability representatives
raised awareness of diversity at the company
in Zuffenhausen. The aim was to highlight
the value of equal opportunities and diversity
and to expand this awareness in talks with
co-workers. The seminar programme on diver-
sity and respect was also further expanded.
Porsche food services
6,268
Schwarzenberg
487
59
Performance - Employees, society, sport
58
STAFF RESTAURANT CONCEPT
21,745
2015
+7%
26,506
24,681
2016
2017
Compared to previous year
Total workforce in Germany ✓
St.P.C.E
9080 9tsls2
Leipzig
4,288
Ludwigsburg
2,500
Bietigheim
1,513
517
Sachsenheim
40 young professionals were introduced to
Porsche as an employer at an exclusive career
day for women.
57
Porsche also regularly informs female students
and women with professional experience
about career opportunities at women-specific
fairs and events such as women&work, Panda
and the Ada Lovelace Festival. At Frankfurt's
International Motor Show (IAA) more than
Fostering young talent is a key means of
increasing the percentage of women at the
company. Around half of the trainees are
female, and 29 per cent of the internships and
final dissertations are completed by women.
A joint project with Stuttgart University was
established in the reporting year to promote
enthusiasm among female pupils and young
women for technical occupations and careers
at Porsche. With the TryScience at Porsche
programme, the company offers female pupils
as well as female students and graduate stu-
dents in the MINT subjects (mathematics, IT,
natural sciences and technology) at Stuttgart
University the chance to find out about related
careers. As in previous years, Porsche also
participated in the Germany-wide Girls' Day
event, giving more than 150 female pupils
from nearby college-preparatory schools and
other secondary schools a look behind the
scenes at the company. In addition, Porsche
has successfully expanded its more than
15-year cooperation with Femtec, the interna-
tional career platform for women in science,
technology, engineering and mathematics. The
highlight of 2017 was the Femtec innovation
workshop, a practice-based project spanning
several months that addressed the question of
"What does a future with fully automated cars
look like for Porsche?"
Training starts from day one at Porsche,
with a two-day induction programme for new
employees and managers known as the
Porsche Warm Up. It gives participants an over-
view of fundamental topics such as Strategy
2025, sustainability, health management and
the activities of the Works Council. Around
2,000 people took part in the Warm Up pro-
gramme in 2017.
Porsche Warm Up
56
99
NEW TRAINING CENTRE IN LEIPZIG
The digital transformation is placing new and
considerably different demands on all employ-
ees and managers. Staff in employee and
management development as well as Works
Council members focussed on this situation in
the reporting year. The aim is to enable all em-
ployees and managers to acquire and enhance
key digital skills in structured and sustainable
ways. Digital topics, tools and training formats
have been added to the overall further training
system, and innovative customised modules
are being integrated into target-group-specific
HR development programmes.
Employee development
is designed to bring automotive technology to
life and inspire students to apply for trainee-
ships at Porsche.
The new training centre that opened in Leipzig
in 2017 reflects Porsche's investment in the
next generation of skilled workers at the site.
With 2,300 square metres of modern work-
shop space and seminar rooms as well as
innovative instructional tools, the centre offers
the best conditions for vocational training in
the constantly changing automotive industry.
It stands for a new era of professional training
that now includes electromobility, hybrid
and connected cars, digital instructional me-
dia, and human-robot cooperation. More than
120 trainees were pursuing programmes
in industrial mechanics, tool mechanics, elec-
tro-mechanics and automotive electro-
mechanics at the Leipzig site in 2017, and
30 more will begin their programmes this year.
A dual Porsche-DHBW study programme will
also be offered for the first time in mechanical
engineering. Training programmes in Leipzig
have long enjoyed a close partnership with the
VDI-GaraGe technology centre in the city's
Plagwitz district, which prepares pupils for
vocational training later on. Its workshop
New training centre in Leipzig
55
Because many applicants are unlikely to meet
the general selection criteria for acceptance
to a traineeship, Porsche offers a basic pro-
gramme known as a preparatory year. Since
2012, 62 young adults have completed a
preparatory year based on the collective wage
agreement, with 58 of them qualifying for
a subsequent traineeship at Porsche. Given
these successful results, the 2017 preparatory
year was expanded and the original number
of 12 participants increased to 20. Porsche
also continued the integration year project for
refugees. Fifteen young people took part, and
almost all have been successfully integrated
into training programmes or the job market in
cooperation with skilled trade companies.
Porsche also works with vocational training
centres to offer traineeships for people with
disabilities either at the company or in con-
junction with it.
The rapid expansion of digitalisation into all
areas of automotive engineering, electro-
mobility and smart mobility is also influencing
vocational training in these fields. Because all
trainees must be able to keep up with techno-
logical advances, they are intensively prepared
for new developments.
Of special note is the increase in the number of
female technical trainees. In the reporting
year, 33 per cent of the first-year trainees and
43 per cent of the first-year students in the
dual Porsche-DHBW programme were women.
PORSCHE VOCATIONAL TRAINING
Performance Employees, society, sport
Porsche has consistently expanded the inter-
national component of its training programme.
Technical trainees have thus far been able
to gain experience abroad in Australia, Great
Britain and the Philippines. In the reporting
year, Taiwan, Italy, China and the US were
added as potential new destinations. Porsche
has also launched an exchange programme
with Bentley and with Volkswagen South Africa.
Twenty-two technical trainees took part in
the programme abroad. Another 18 trainees
in the dual Porsche-DHBW programme were
sent to Great Britain, Switzerland, Spain,
France, Italy, the Czech Republic, China, Korea,
Japan, Australia, Brazil, Canada and the US.
They gained experience at different Porsche
sites or with Bugatti or Bentley. Ten commer-
cial trainees were sent to Great Britain and
Spain respectively.
Porsche is expanding its main plant in Zuffen-
hausen, preparing to produce the Mission E
and again increasing the size of its technical
training programme - from the current
number of 106 trainees to 156. In addition to
traditional occupations in the automotive in-
dustry, approximately half of the new trainee-
ships will be for automotive electromechanical
engineers and industrial electronics engineers.
In addition, a new future-oriented discipline
of Information Technology (Automotive IT) was
established as a study programme in connec-
tion with DHBW. Next year the disciplines on
offer will also include information technology,
and the number of places in electrical engi-
neering will be increased.
on-going skills acquisition, and internal
development opportunities are cornerstones
of Porsche's HR policy. Over the last seventy-
five years, vocational training has formed
the basis for these efforts, with trainee pro-
grammes and curricula adapted to meet
projected advances in technology and devel-
opments in society. The company currently
offers formal training programmes for ten
technical and commercial occupations, as well
as seven programmes of study in connection
with Baden-Württemberg Cooperative State
University (DHBW). Two hundred young people
began a training programme at Porsche AG
in the financial year just ended. Forty per cent
of the slots for technical occupations are
reserved for applicants with a college degree.
If successfully completed, the future-oriented
training system will lead to trainees gaining
a permanent employment contract. In the
period under report, 142 trainees and DHBW
students signed an employment contract with
Porsche after passing their final examinations.
Trainee programme
Training
Following successful completion of the third
wave of the Porsche Trainee Programme, the
fourth wave started in October 2017 with
ten participants. This 12-month programme
offers talented young college graduates an
opportunity to learn about working processes
across departmental and divisional lines. It
includes project and practical work in Germany
and abroad.
Programmes at management level
Management-level training at the Porsche
Group includes two high-quality modular
programmes developed in collaboration with
leading international business schools and
tailored to current and future requirements for
Porsche management personnel.
Since 2012 Porsche has continuously in-
creased the number of women at the company
to the current level of 15.3 per cent. Over
the same period of time the number of female
managers has more than doubled and is cur-
rently at nine per cent. Measurable and binding
equal opportunities are part of target agree-
ments for all managers at Porsche. The Porsche
management has set specific divisional targets
above and beyond legal requirements for
the percentage of women promoted to man-
agement positions. These targets are based
on gender ratios in the upper wage groups.
Training and further educational opportunities
such as workshops and seminars as well as
mentoring programmes are also offered.
the Porsche compliance code. To consolidate
and further expand equal opportunity and
diversity activities, the Equal Opportunities
department was created in January 2017. One
important aim that Porsche continues to work
toward consists of increasing the percentage
of women at all levels of the company.
Equal opportunities and diversity
The Porsche workforce is fuelled by its diversi-
ty. Employees from more than 80 countries
with a wide range of individual skills ensure
that Porsche takes the lead in many ways.
Promotion of diversity by the management is
anchored in both the previous leadership
guidelines and in the newly developed Porsche
Code. Equal opportunities and equal treat-
ment for all employees - regardless of race,
ethnicity, nationality, religion, beliefs, political
or trade union activity, gender, sexual orienta-
tion, age, disability or illness - are stipulated in
Porsche AG uses a range of internal media to
inform employees about the many options in
this area. The Works Council also offers a com-
prehensive platform for information and dis-
cussion with its meetings at individual Porsche
sites in Germany. Co-determination is highly
valued in general at Porsche and is a key pillar
of the company's success. This also includes
the numerous wage and factory agreements
arrived at in the reporting year. The Works
Council is an important partner and driving
force behind the traditional fair for employees
and their families at the Zuffenhausen site,
which welcomed more than 20,000 guests in
2017. The 6-hour Charity Run is also the re-
sult of an initiative by the Works Council. More
than 3,000 employees in nearly 250 teams ran
at the event in the reporting year, and raised
a total of 185,000 euros for good causes.
Co-determination
Performance Employees, society, sport
Porsche is committed to making work flexible
in terms of both location and times. Working
from home, flexible working times in certain
stages of life and voluntary time off in the form
of sabbaticals are just some of the options.
Job sharing for leadership roles has also proven
to be successful in a pilot project and is being
expanded to other areas of the company.
Together with the Works Council and guided by
the relevant works agreements, a framework
for successfully implementing these options
is being put into place.
Porsche's family service provides comprehen-
sive individual consultation and support for
all stages of family life. This includes consulta-
tions for prospective parents, help in finding
and arranging qualified care personnel for chil-
dren and seniors, and trained support in finding
and selecting care facilities for the elderly.
Porsche places a premium on the ability to
balance a career and a family, and supports its
employees with a wide range of services. For
example, a sufficient number of childcare
places in nurseries near the company sites are
ensured by six partner providers. As in the
previous year, children of employees enjoyed a
comprehensive programme throughout the
school summer holidays at all the sites around
Stuttgart, including a shuttle service. Childcare
was also available during all other school holi-
day periods, with the exception of Christmas.
Career and family
CO-DETERMINATION AT PORSCHE
Secure workplaces and employee protection
are of utmost priority at Porsche. 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. No area of work
at Porsche suffers significant accumulation
of illnesses. This is also the case for operational
activities linked to a particularly high risk of
The mood barometer was used again in the
reporting year, with a company-wide employee
survey at Porsche AG and the German subsidi-
aries. More than 18,000 employees responded
to questions on topics such as working to-
gether with colleagues and superiors, work
quality and the availability of information about
current developments at Porsche. There were
new questions this time on integrity and on
collaboration within the Porsche Group. The
results were analysed and then discussed in all
company divisions with input from the Works
Council. Managers and employees identified
potential areas for improvement and defined
specific ways to for example optimise processes
and working conditions.
Porsche mood barometer
A major future competitive advantage will be
the ability to provide employees with the
right skill acquisition opportunities at the right
times and with a high level of quality. Skills
therefore need to be defined, directed and
managed in just as professional a manner as
other factors in production. A systematic
approach is therefore being created to help the
company develop the employee skills needed
to meet the challenges of the future. A stand-
ardised process will define skill gaps at an
early point in time so they can be filled through
targeted retraining and further training,
farsighted recruitment and new focuses in
existing training programmes. A pilot project
for this approach was successfully carried
out in the reporting year and will now be put
gradually into practice.
Strategic skills management
The Porsche Advanced Management Pro-
gramme has passed a milestone. Following
its successful introduction in April 2015, the
second wave started in March 2017 with
22 participants from Porsche AG, worldwide
subsidiaries and Bentley. It concentrates
on enhancing leadership skills and helping par-
ticipants to successfully operate in global and
volatile environments and actively guide
Porsche's strategic course.
is designed to support second-tier managers
in the Porsche Group and to actively guide
the digital transformation process. It aims to
systematically raise the level of leadership
skills, reinforce the requisite mindset and ex-
pand the repertoire of methods. This new
management programme started in December
2017 with 50 participants.
Porsche launched an international manage-
ment programme in the reporting year.
Under the motto "A Distinctive Agility Trip for
Porsche Leaders", this customised programme
Talent development programmes
A key part of the HR development and talent
strategy within Strategy 2025 is to promote
talented members of the workforce employed
under the general wage agreement in sustain-
able and targeted ways. For example, the
new Porsche development programme seeks
to enhance employees' technical and leader-
ship skills to make them potential candidates
for assuming management positions. This
programme is based on the content and frame-
work conditions of Strategy 2025, including
digitalisation, innovation abilities, internation-
alisation and life-long learning. The Porsche
development programme started in November
2017 with around 250 participants. Pro-
grammes for specific target groups were also
further developed in the reporting year. The
Fit for Planning pilot project enables produc-
tion employees to acquire the skills to become
production, logistics or process planners.
Analogous programmes will be launched for
additional target groups on a needs-oriented
basis. The development programmes for
new talent and young professionals were also
continued in all divisions in the reporting year.
Porsche health management is proactively
involved in the crossdepartmental develop-
ment of workplace framework conditions. The
primary aim is to safeguard the health and
fitness of employees and therefore their abil-
ity to work in the long term. Key elements
include the quick reintegration of employees
who have been ill for an extended period and
the placement of employees with compro-
mised performance due to health issues in
positions suited to their capabilities. Measures
such as systematic ergonomics assessments
of work stations, for example, detect high
and specific work strains and mitigate them
through suitable technical or organisational
measures. Work stations at Porsche are
designed in keeping with human ergonomics
and are based on the latest insights of
occupational medicine. The company assidu-
ously applies the legal and trade association
specifications and recommendations. Further-
more, it also offers all employees individual,
workplace-related physiotherapeutic advisory
and treatment services.
Staff ✓
Porsche AG
committees and decision-making bodies. The
mood barometer is an instrument through
which employees throughout the company are
anonymously surveyed about topics relating
to working with colleagues and supervisors,
the quality of work and the provision of infor-
mation. The detailed evaluation is followed by
a discussion of the results involving the Works
Council in all areas of the company, in which
potential improvements are identified and
corresponding measures for optimising work
procedures and conditions are defined jointly.
In this report, the topic of corporate co-
determination is covered by the provisions
of the Global Reporting Initiative found
in GRI 402: Labour/Management Relations
and GRI 407: Freedom of Association and
Collective Bargaining.
Porsche's central compliance help desk pro-
vides informational and advisory services
on compliance questions and serves as a col-
lection point for notifications from managers
and employees. To ensure and promote lawful
behaviour, managers and employees are given
regular information and training on integrity
and compliance. One of the main response
measures was to set up an internal and external
collection point for notifications of potential
legal violations in connection with Porsche.
Within the company, managers and employees
can confidentially report suspected illegal
acts or serious irregularities to the compliance
help desk. Outside the company, managers,
employees, Porsche customers and business
partners, public officials and other individuals
can report legal violations anonymously via
the ombudsman system. In both cases all
information is carefully examined, and any vio-
lations found are responded to appropriately
while observing the employment and co-
determination guidelines. This includes taking
suitable countermeasures and sanctioning
individual misconduct. The Executive Board of
Porsche AG receives regular reports on actions
taken by the compliance organisation and
on preventive and response measures in the
Porsche Group.
Compliance training ✓
Compliance training is determined by the
compliance officers for each area, in conjunction
with the HR department. At the time of this
report, training has thus far taken place primar-
ily in a classroom format. Of note is a pilot
e-learning project in the development division's
Technical Conformity department, covering
regulatory guidelines, environmental protection
issues, general compliance guidelines and
the Porsche whistle-blower system. Plans call
for online courses on compliance topics to
supplement classroom training for all the com-
pany's departments in the future.
The foundation for this is a training strategy
that uses risk analyses to identify target
groups and key areas of content for compliance
officers, and that also defines organisational
aspects such as the number and frequency of
events and the capacities needed. A regular
programme of set training events for managers
and new employees is supplemented by work-
shops on selected topics and/or for specific
target groups.
One example: compliance is included in the
workshops on corporate culture for first- and
second-tier managers as well as for all other
managers with technical or line management
responsibilities. These workshops focus on
the Porsche code of conduct and the compa-
ny's compliance culture as well as on basic
anti-corruption guidelines and principles of
antitrust law. They cover not only theory but
also practice, with group exercises on address-
ing and solving potential compliance issues.
Porsche managers are required to be available
to their employees at all times for reporting
of possible non-compliance in their areas
of responsibility.
New employees are familiarised with the
company's compliance culture as part of the
Porsche Warm Up programme. Immediately
upon joining Porsche, they study the company's
code of conduct and basic anti-corruption
guidelines. They also engage in group exercis-
es to address potential compliance issues
and develop their own possible solutions. The
Porsche Warm Up programme is currently
held on a monthly basis, depending on the num-
ber of new employees.
Compliance training is required at Porsche.
Analyses and results are distributed internally.
Starting in 2018, the Porsche HR department
is keeping records of attendance at compli-
ance seminars and compiling individual histories
of compliance training.
Information for employees
Additional information about the Compliance
department's training programme is available
to Porsche employees on the Intranet. In addi-
tion 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
As of 14 December 2017, the Volkswagen
Group's code of conduct also applies to Porsche.
The new Porsche code of conduct provides
comprehensive directions on employees' com-
pliance responsibilities:
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
Adherence to the law is ensured by a compli-
ance organisational set-up based on the
company's business model, as well as legally
secure processes and measures for both
preventing violations and responding to any
that might occur. Porsche is currently consid-
ering seven subject areas in its compliance
management system. To prevent legal viola-
tions and to support employees in complying
with laws and regulations, Porsche has estab-
lished a compliance organisation. Its members
include a chief compliance officer, compliance
area managers at Porsche AG, and the manag-
ing directors and local compliance officers
of the Group member companies. Porsche's
compliance programme covers a range of dif-
ferent measures for prevention and response.
Risk analyses are used to regularly define both
preventive measures and necessary action
in accordance with specific business models,
applicable environmental conditions and
the types of business partner relationships.
Key preventive measures here include adopt-
ing and communicating clear guidelines and
providing confidential compliance advice, as
well as regular information and training work-
shops for managers and employees on relevant
compliance topics. Porsche's code of conduct,
which is binding for all managers and employ-
ees, summarises the most important principles
and expectations regarding lawful, ethical
and sustainable action in the Porsche Group.
It addresses matters such as dealing with
conflicts of interest, combating every form
of corruption, appropriate behaviour within the
Group toward customers, business partners
and public officials, and taking responsibility
for the economy, the environment and society.
There is also a separate guideline for each
compliance topic - for example on combating
corruption, dealing with conflicts of interest -
to avoid violations of antitrust law and prevent
money laundering.
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; procure-
ment; export control; prohibition of insider
trading
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 implementation of the
new code of conduct includes publishing
it on the Internet and Intranet, sending a
digital version to all employees by email,
adding it to training materials and distributing
the compliance brochure to new employees
at classroom training events.
In accordance with the Global Reporting
Initiative (GRI) standards, Porsche covers the
topic of compliance with the following disclo-
sures: GRI 205: Anti-corruption, GRI 206:
Anti-competitive Behavior, GRI 307: Environ-
mental Compliance, GRI 419: Socioeconomic
Compliance. This information is measured
and reported in part by the number of business.
sites audited and the number of compliance
training events.
42
43
Performance Sustainability strategy and sustainability management
43
PRODUCT RESPONSIBILITY
Sustainability principle
Porsche develops high-quality, innovative
and long-lasting products. With each new
model generation, Porsche consistently sets
new standards in quality, environmental
friendliness and safety across the entire life
cycle of all vehicles.
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" as well as "New
mobility concepts". These topics are marked
by clearly defined processes and skills as well
as formalised and transparent evaluation pro-
cedures.
Vehicle safety
Vehicle safety is Porsche's top priority. And by
that we do not just mean the safety of our
own products, but the safety of all road users
in general. Porsche stakeholders - persons,
groups and institutions who are affected direct-
ly and indirectly by the activities of our compa-
ny, and who can have a significant effect on
our company's success - place a great deal of
importance on vehicle safety. During the sus-
tainability survey that was part of 2017's ma-
teriality analysis, stakeholders placed this
topic first, not least due to its economic rele-
vance and its social importance.
- at the workplace: occupational safety and
healthcare; data protection; security and
protection of information, know-how and
intellectual property; IT security; handing
company assets.
Vehicle safety is a decisive criterion in the
development of innovative and modern vehicles.
The initial elements arise during the concept
phase and at early design phases, such as the
design of the outer contour or the interior.
Active and passive vehicle safety is subject to
strict legislation. Anti-lock brakes, electronic
stability programs and emergency braking sys-
tems, for example, all contribute to active safety.
Passive measures - airbags, seatbelts or
body crumple zones - reduce the effects of an
accident. Porsche not only meets numerous
international legal requirements, some of our
benchmarks exceed them - these are formal-
ised in a requirements catalogue that the Devel-
opment, Setup, Safety and Front/Rear End
Systems department draws up, has agreed
across all departments and maintains. Clearly
delineated responsibilities and a comprehen-
sive reporting system guarantee that the speci-
fications are implemented. Planning, execution
and documentation of crash tests are the
responsibility of the Development, Setup, Safety
and Front/Rear End Systems department.
Acceptance is the responsibility of the Devel-
opment Technical Conformity department.
Responsible action is based on complying with
laws and regulations. Porsche's stakeholders
share this view and therefore assigned a high
level of importance to the topic "Compliance"
in the 2017 materiality analysis.
41
Occupational health and safety ✓
Healthy and capable employees are indispen-
sable for the success of the company. Stake-
holders also attribute great importance to this
issue in the 2017 materiality analysis.
OUR WAY-MANAGEMENT APPROACHES
IN OUR ACTION AREAS
BUSINESS & CUSTOMERS
Sustainability principle
Satisfied customers, economic stability,
value-generating growth and social acceptance
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 environment. Eco-
nomic 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 sta-
bility", "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. Electrification, digitalisation and con-
nectivity are the cornerstones of a new era
of individual mobility. This view is shared by
Porsche's stakeholders, who assigned corre-
spondingly high degrees of relevance to the
topics of "economic stability" and "digital
transformation" in the 2017 materiality analy-
sis. From the company's perspective, these
two topics are also seen as basic prerequisites
for long-term economic success, and were
assessed as having a medium impact on soci-
ety and the environment.
Excellent profitability with an operating return
on sales of at least 15 per cent is an out-
standing feature of the Porsche corporate phi-
losophy. At the same time, Porsche is making
enormous investments in mastering the digital
transformation and enhancing its own powers
of innovation. The digital transformation affects
all areas of the company - including internal
processes, interaction with customers and the
development of products and services. An
40
40
overall innovation management system sup-
ports new ideas, expedites prototype-based
testing of technologies and trends, and encour-
ages 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" in
its disclosures on GRI 201: Economic Perfor-
mance. This information is measured and
reported on the basis of the Porsche AG Group's
financial analyses, financial data and calcula-
tions of added value.
Long-term customer relations
Compliance
Porsche places a premium on customer rela-
tions and seeks to maintain and promote
customer enthusiasm for the product worlds of
exclusive sports cars and smart mobility.
"Inspiring customers with a unique product and
brand experience" is one of the four main aims
of its Strategy 2025. The materiality analysis
based on a stakeholder survey also underscores
the importance of "long-term customer rela-
tions" for the company. Although an internal as-
sessment considers this topic to have only
a minor impact on society and the environment,
the strategy for the sales and marketing division
promotes a range of measures to further
optimise the customer journey at Porsche.
Economic efficiency,
environmental con-
sciousness and social
responsibility are
In accordance with the Global Reporting Initia-
tive (GRI), Porsche covers the topic of "long-
term customer relations" in its disclosures on
GRI 418: Customer Privacy. Porsche takes
individual data privacy very seriously and re-
spects the right to determine what is done
with such data. Data protection is integrated -
independently and free from external super-
vision - into relevant company processes to en-
sure compliance with laws and regulations.
The company has issued its own guidelines that
commit it to principles of data protection
such as data economy, purpose-based collec-
tion and confidentiality. Due to internal con-
fidentiality guidelines, any reports received of
data protection violations cannot be disclosed.
Responsibility in the supply chain
Economic success and the use of new tech-
nologies are causing greater attention to
be devoted to companies' supply chains. Higher
levels of sales mean a higher number of com-
ponents from suppliers. This topic is also fraught
with potential ethical issues, as strongly em-
phasised by Porsche stakeholders in the 2017
materiality analysis. According to an internal
company assessment, the Porsche supply chain
has a medium impact on the environment
and society. Porsche makes every effort to make
the supplier chain as positive and value-adding
as possible, both within the realm of its own
possibilities and also in conjunction with sup-
pliers and sub-contractors.
When Porsche was incorporated into the
Volkswagen Group, its procurement division
was also largely integrated into the Group's
organisation. Shared purchasing structures,
processes and systems were specified
in a cooperation agreement back in 2011.
The majority of Porsche's procurement deci-
sions are therefore coordinated and agreed
upon with the Volkswagen Group. Cooperation
between Porsche AG and the Volkswagen
Group has also been increased on a continu-
ous basis, with structures both expanded
and consolidated.
This work is based on confidential cooperation,
shared values and strict compliance with
the sustainability requirements defined in the
Volkswagen Group. The concept of "sustaina-
bility in supplier relations" and the correspond-
ing code of conduct compel all parties to
observe and comply with the high environ-
mental, social and human rights standards in
the International Chamber of Commerce's
charter and the OECD's guidelines for long-term,
sustainable development. The relevant key
labour standards from the International Labour
Organization (ILO) serve as the foundation
for the sustainability requirements that Porsche
helped to revise and update in 2017. All sup-
pliers are also expected to follow the OECD's
due diligence guidance on responsible supply
chains of minerals from conflict-affected and
high-risk areas. Porsche is active in this area
in connection with the Group's responsible
minerals initiative (RMI). These sustainability
requirements are part of suppliers' contracts,
the violation of which can result in reviews,
formal statements and potentially also the ter-
mination of business relations. Sustainability
audits in the 2017 reporting year yielded five
cases in which specific sustainability require-
ments were not met. Appropriate measures
were agreed upon with three suppliers, and
the introduction of these measures was moni-
tored. The other two cases were still open at
the end of the reporting year and are still being
evaluated.
Porsche always conducts integrity checks
before entering business relations with new
suppliers. Once relations have started, moni-
toring and development take place on a
continuous basis and are supported by sur-
veys, risk analyses of the suppliers' countries,
and e-learning modules and workshops.
Porsche has also carried out sustainability
audits of selected suppliers since 2016.
Audits are followed up by detailed reports and
plans of action. Porsche is thereby fulfilling
one of the key components of Strategy 2025 -
in addition to numerous additional activities
such as regular employee seminars on sustain-
ability requirements in the supply chain as
well as supplier workshops. Sustainability in
the supply chain also has its own section
in the purchasing strategy. And finally, a new
guideline in the Volkswagen Group on sustain-
ability in supplier management has governed
all internal processes and areas of responsibili-
ty since 2017. Porsche is transferring the
requirements in this guideline into its own
brand-specific guidelines in the spring of 2018.
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 Assessment/Supplier
Social Assessment; GRI 408/409: Child Labor/
Forced or Compulsory Labor; and GRI 412:
Human Rights Assessment.
Performance Sustainability strategy and sustainability management
Relations with all of our stakeholders are char-
acterised by interaction and dialogue. In
addition to classical means of communication,
Porsche is establishing new forms of dialogue
with customers. Apps, social media, chats and
the overarching, personalised "My Porsche"
customer portal not only provide information
in quick and uncomplicated ways but also
enhance individual interaction with the company.
Personal contact is essential to building long-
term customer loyalty. The company views
constructive criticism as an opportunity to
further enhance its products and processes.
Porsche's worldwide customer and market
research seeks to promptly identify customer
expectations, particularly with respect to
new technologies in automotive engineering
and the use of individual mobility, interpret
these expectations in comprehensive ways
and thereby channel them into the early devel-
opment stages of products and services.
More than 200,000 questionnaires are sent
out every year to collect data and gauge the
mindsets of customers around the world. In a
product quality and customer satisfaction
forum, the Executive Board of Porsche AG
evaluates the results and consequences with
technical specialists as well as with represent-
atives from the Quality Assurance, Customer
Relations and Aftersales departments.
44
not mutually exclusive.
On the contrary-
by combining them
we create more value
for our stakeholders.
Fuel consumption and vehicle emissions
Electrification and digitalisation are leading to
radical change right throughout automobile
construction. Porsche accepts this challenge
resolutely. The company builds sports cars
that combine supposed opposites such as tra-
dition and innovation, performance and day-
to-day usability, functionality and design as
well as exclusivity and social acceptance into a
single whole. A key part is also played by fuel
consumption and vehicle emissions - after ve-
hicle safety, it was identified as the second-
most important topic by the stakeholders in
the 2017 materiality analysis. Its materiality
to Porsche has also been confirmed within the
company: fuel consumption and vehicle
emissions are not only the most important topic
with regard to business relevance, they also
have significant ecological and social conse-
quences. Continuous increase in efficiency,
development of alternative drive technologies,
lower fuel consumption and lower emissions -
for Porsche, resource-saving and environmen-
tally friendly mobility is a primary strategic target.
46
Performance Sustainability strategy and sustainability management
47
EMPLOYEES & SOCIETY
Sustainability principle
At Porsche, people are at the centre of the
company. It assumes responsibility for its em-
ployees 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 international 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.
Under the "Employees & Society" heading,
Porsche covers, among other themes, the im-
portant topics identified in the 2017 mate-
riality analysis: "attractive employer," "staff
development," "corporate co-determination,"
and "occupational health and safety." In all four
areas, Porsche has clearly defined processes
and demarcations of responsibility as well as
established avenues of evaluation and feedback.
Attractive employer
The basis for successful HR work is Porsche's
continued position as an attractive employer.
Stakeholders - i.e. people, groups and institu-
tions directly or indirectly affected by the
activities of a company and whose success
they can significantly impact - attributed
a great deal of importance to this aspect in
the 2017 materiality analysis. According
to internal assessments, the topic also has a
moderate degree of impact on employees
and society. Porsche gets particularly high
marks for excellent general conditions, a
strong corporate culture and co-determina-
tion, as well as extensive options in the area of
work-life balance. Firmly anchored in the
Porsche HR strategy, employer attractiveness
is one of four central areas of emphasis in
the overarching Porsche Strategy 2025. Other
benchmarks include the "Compliance Code"
and the "Porsche Business Rules."
The continuous development of the corporate
culture is exceptionally important to Porsche.
The backdrop is defined by the strong growth
in staff numbers in recent years, the restruc-
turing of the automotive industry and the
company's reorientation toward electric tech-
nology, digitalisation and connectivity. Process
sponsors are Porsche Chairman of the Exec-
utive Board Oliver Blume, Porsche HR Board
48
Member Andreas Haffner and Uwe Hück,
Chairman of the Group Works Council. Drawing
on the new culture guidelines, the future
"Porsche Code" will comprise the four elements
dedication, pioneering spirit, sportiness and
family. This code will replace previous leader-
ship guidelines.
Porsche places great importance on worklife
balance. Employees receive support through
a wide variety of different measures. Six
cooperation partners make sure that there are
sufficient childcare places in nurseries near
the company's sites. With the family service,
Porsche offers free, individualised and compre-
hensive support service for all family life situ-
ations. Porsche also provides flexible options
with respect to work location 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 voluntary
periods off in the form of sabbaticals. Job
sharing in leadership roles has also proven to
be successful in a pilot project and is now
being expanded within the company.
46
In this report, the topic of employer attractive-
ness is covered by the provisions of the Global
Reporting Initiative as indicated by the flag
GRI 401: Employment. This is measured and
reported based on the following key figures:
total workforce, employee structure, new hires
and employee fluctuation and parental leave
claims.
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.
To be well prepared for the challenges facing
the automotive industry, Porsche identifies
and retains qualified and enthusiastic profes-
sionals. In the context of the 2017 materiality
analysis, stakeholders rate the aspect of em-
ployee development as highly important.
According to internal assessments, the topic
also has a moderate degree of impact on
employees and society. Porsche is directly in-
volved in these positive effects and is striving
to achieve continuous improvement in this
area in the future as well.
The foundation is formed by professional
training as well as the support and qualification
of students, for example through training op-
tions for dual-studies students and the
"Porsche Trainee Programme". Another impor-
tant component is the permanent hiring of
all apprentices upon passing the final exami-
nation. Building on this, employees also
Employee support and
qualification is not only a
central component of
the Porsche culture and
leadership guidelines;
have access throughout their career to a diverse
range of programs and qualification offer-
ings for their systematic and forward-looking
professional development on all levels. This
includes the Porsche Warm up introduction
programme for all new hires, the Porsche
development programme for the qualification
and preparation for the possible assumption
of management roles, and target group-
specific qualification and talent promotion
in the field of production. Two modular and
internationally oriented qualification offerings
for the management level - the Porsche
Management Programme International for
managers and the Porsche Advanced Manage-
ment Programme for top management -
extend the range of training opportunities.
Employee support and qualification is not
only a central component of the Porsche culture
and leadership guidelines; it is also firmly an-
chored in the Porsche Strategy 2025. The digital
transformation in particular is placing new
and significantly different demands on the
workforce. Against the backdrop of digitalisa-
tion, the Fit for Digit@l initiative was started
to help establish and expand a common basis
of knowledge and understanding. Employee
support and qualification is also an instrument
of strategic leadership and planning processes.
Individual training requirements are identified
during annual employee appraisals, and relevant
development opportunities established on
this basis. The comprehensive range of training
opportunities and individual staff development
programmes are continuously evaluated
and optimised in consultation with the Works
Council. In the year under review, the newly
introduced Porsche Learning Platform estab-
lished a digital portal for the targeted support
of employees.
The objective of staff development measures
is the ongoing structured establishment and
extension of capabilities critical to the compa-
ny's success among all employees. One pilot
project in the reporting year of 2017 was a
procedure for strategy skills management. The
core tasks and associated skills are analysed
and compared to future tasks and skills yet to
be acquired by means of a fit-gap analysis.
Detected capability deficiencies can thus be
addressed at an early stage through targeted
re-training and further training, recruiting and
new emphases in ongoing training.
In this report, the topic of staff development
is covered by the provisions of the Global
Reporting Initiative found in GRI 404: Training
and Education. This is measured and reported
on based on the following key figures: the
number of participants in training measures
and the average training hours per employee.
There is currently a survey under way for
Porsche AG and Porsche Leipzig GmbH; con-
tinuous expansion to the Porsche AG Group
is planned for the future.
Corporate co-determination
One of the pillars of the Porsche corporate
culture is corporate co-determination. The rel-
evance of the topic is also underscored
by the 2017 materiality analysis. Porsche ben-
efits from continuous dialogue as well as open,
direct communication across all levels of the
organisation. For all topics affecting the staff
and the company, the employer and the Works
Council have traditionally worked together
closely. Internal media inform employees of
Porsche AG concerning the variety of options
on offer. Moreover, the Works Council offers
a comprehensive platform for information and
discussion at the individual Porsche locations
through its works meetings. In the form of
additional informational and department-spe-
cific events, the board members and the Works
Council transparently provide information
concerning current topics and developments.
It is also established practice at Porsche to
inform all employees and their elected rep-
resentatives about important operational
changes both comprehensively and in a timely
manner. This is done in compliance with
national laws, applicable collective bargaining
agreements and works agreements. Adher-
ence to this corporate practice is ensured by
a number of means, including 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.
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 Customer Safety
At the same time, there is also a multitude
of ways for employees - be it openly or dis-
creetly through special channels - to bring
their suggestions, problems or complaints to
Staff development ✓
In general, environment and energy manage-
ment staff are always at the disposal of all
company stakeholders - internal and external -
with regard to questions or suggestions
on the topic of "environment and energy". The
goal is open and transparent stakeholder
dialogue. An example of this is the central
complaints management within the environ-
ment and construction management.
it is also firmly anchored
in the Porsche Strategy
2025.
are the frame of refer-
ence for the manage-
ment of environment
and energy.
Consumption optimisation is one side of
resource-saving mobility, reducing harmful
emissions is the other. Modern exhaust
after-treatment systems reduce emissions,
regardless of the current discussion sur-
rounding diesel engines. In reporting year 2017,
Porsche recalled diesel Cayennes with the
three-litre V6 engine in emission class EU6.
Previously, internal investigations had revealed
irregularities in the engine control software;
these irregularities were actively reported to
Germany's Federal Motor Transport Authority.
Around 21,500 vehicles from construction
years 2014 to 2017 were affected around
Europe, of which 6,000 were in Germany. On
18 October 2017, the authority approved
the software update that Porsche had submitted
In addition to a wide range of measures to in-
crease efficiency - from lightweight con-
struction and technologies for the optimisation
of conventional combustion engines to the
use of smart assistance systems - Porsche will
increasingly make use of hybridisation and
complete electrification of its model range.
"Electromobility" and "Vehicle architecture of
the future" are cornerstones of the Porsche
Strategy 2025. The Mission E, as the first
purely electric Porsche in the company's 70-
year history, defines sports car construction
in this category with regard to performance,
driving dynamism and range.
Porsche strives to achieve balanced environ-
mental performance. Thus, a conscious and
highly efficient use of water throughout
circulation systems as well as multiple reuse
play an important role - as does circumspect
handling of contaminated production waste
water. Avoiding waste, low-waste technologies
and sustainable disposal solutions are key
aspects of Porsche's waste management con-
cept. The resource regulation "environmental
protection" serves as both an internal guideline
as well as a set of rules for suppliers, among
other things.
Electrification and
digitalisation are leading
to radical change right
throughout automobile
construction. Porsche
accepts this challenge
resolutely. The company
builds sports cars
that combine supposed
opposites such as
tradition and innovation,
performance and
day-to-day usability,
functionality and design
as well as exclusivity
and social acceptance
into a single whole.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
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 this
indicator refer, however, only to emissions that
arise in production and administrative opera-
tions. For that reason, the consumption and
emission figures for all vehicle models are
reported instead. Taking product-specific emis-
sions into account as part of an overall re-
cording of the company's Scope 3 emissions
is an issue that is currently being worked on;
reporting is planned for the next few years.
Materials and sustainable raw 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 considered this topic to be relevant
(fourth place among all evaluations) - despite
the company's view that it has a relatively
small effect on the environment and society.
The reason for the company's view is the
relatively low number of Porsche vehicles that
are produced.
The long service life of Porsche vehicles, their
high-quality workmanship and the use of
low-wear materials are part of the Porsche
principle. The company is taking more and
more environmental effects of a vehicle -
across its entire life cycle - into account, from
the acquisition of raw materials and the
manufacture and use through to disposal. The
aim is to achieve a total ecological optimum.
Electric vehicles, for example, protect the envi-
ronment when they are being used. On the
other hand, the impact on the environment by
the manufacture of electric vehicles is on
the increase due to the raw materials and pro-
duction processes used for components
such as traction batteries. Even if, all in all,
every factor speaks in favour of electric driving,
achieving optimum environmentally friendly
vehicle manufacture remains an ongoing task
for Porsche. That applies, naturally, to the
selection of raw materials too. This can be seen
in the fact that the promotion of sustainable
materials and the consideration of a vehicle's
service life are expressly anchored in the
Porsche Strategy 2025. The Sustainable
materials working group ensures that an ex-
change of ideas occurs between departments.
The company is also a heavy promoter of the
issue of recycling the raw materials that have
been extracted and processed with a high
intensity of effort.
In this report, the topic of "Materials and
sustainable raw materials" is covered in
accordance with the rules of the Global Re-
porting Initiative by the indicator GRI 301:
Materials. The indicator is measured and
reported in tonnes based on annual consump-
tion of materials.
New mobility concepts
Urbanisation, increasing prosperity, growing
mobility around the world and - as a result -
greater impact on the environment are trigger-
ing an innovative and market dynamic towards
adapting the automobile and how we use it.
These factors are leading to a diversification of
drive concepts to achieve both highly efficient
and alternative drives, but also new and at-
tractive mobility concepts. Digitalisation and
connectivity, as well as customers' desire for
more flexibility and sustainability, are acceler-
ating this change. In the 2017 materiality
analysis, the Porsche stakeholders underline
the key importance of this transition, as do
internal company analyses of possible effects
on the environment, employees and society
as well as of the economic consequences for
the company.
Porsche is developing innovative products and
services to shape flexible and comfortable
mobility. The features of this mobility include,
but are not limited to, innovative solutions
for parking, 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 are aligned in particular with new
customer requirements. This development
is underpinned by close cooperation between
the company's different departments, an
open information policy, as well as early pilot-
ing and inclusion of the stakeholder groups.
for testing. Since calendar week 45 of last
year, Porsche has been recalling the affected
vehicles into workshops for free overhauling.
Porsche does not develop or produce any
diesel engines itself, but, as vehicle manufac-
turer, accepts its full responsibility to custom-
ers. It is of utmost priority for the company
to fully meet customer expectations with re-
gard to quality, integrity and service.
Environmentally conscious and energy-effi-
cient activity at all sites and across all levels is
an essential element in the day-to-day busi-
ness. A company-wide environment and energy
management policy continually checks all
work processes in regard to ecological impact
and irregularities along the entire value chain.
Internal sets of rules and strategic guiding
principles are the frame of reference for the
management of environment and energy. A
proprietary Group guideline defines standard-
ised procedures and responsibilities within
the Porsche Group. It supports the Group com-
panies in the systematic investigation, ob-
servance and checking of the regulatory envi-
ronmental 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 pre-
port. What is more, the parking situation at
the location and mobility around the plant
grounds have been improved. Porsche also
directs daily delivery traffic as efficiently as
possible: this is why Logistics already makes
use of two gas/diesel hybrid trucks and two
natural-gas-only trucks.
Performance Sustainability strategy and sustainability management The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129. 45
ENVIRONMENT & ENERGY ✓
Sustainability principle
A company-wide
environment and energy
management policy
continually checks all
work processes in
regard to ecological
impact and irregularities
along the entire value
chain. Internal sets
Porsche views the conservation of natural re-
sources as an entrepreneurial obligation.
Whether in development or in production, the
objective is to impact the environment as little
as possible and to use energy efficiently. All
the steps taken to this end are scrutinised on a
continuous basis along the entire value chain,
and improvements are made where necessary.
The "Environment and Energy" action area con-
stantly reviews the themes identified in the
2017 materiality analysis: "energy and emis-
sions during production", "environmentally
compatible logistics" and "resource consumption
during production". Porsche has mandated
clearly defined processes and responsibilities
for all its divisions. Options for feedback and
evaluating processes have been codified.
Energy, emissions and resource consumption
during production
Global climate change, scarcity of resources
and advancing urbanisation all pose enormous
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".
According to internal assessments, Porsche's
activities in this area tend to have less of a
direct effect on environment and society: nev-
ertheless, Porsche considers itself under
obligation to maintain an uncompromising,
sustainable company policy.
The strategy field "sustainability in production"
defines short-, medium- and long-term meas-
ures. The "environment and energy efficiency
strategy" and the company's own "environ-
mental policy" are additional strategic guiding
principles. With these the company is imple-
menting a requirement of the international
standards for environment and energy
management, ISO 14001 and ISO 50001, to
which Porsche's internal specifications and
processes are orientated. The sports-car maker
also complies with the EMAS (Eco-Manage-
ment and Audit Scheme) standards, a volun-
tary 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 Develop-
ment Centre in Weissach and the external
locations, the central parts warehouse
in Sachsenheim and Porsche Werkzeugbau
GmbH have all been certified as compliant
with this standard. These locations also have
an environment management system that
conforms to ISO 14001 at their disposal. In
addition to the official certifications, Porsche
also reviews in-house compliance with
environmental and energy laws as part of an-
nual system and process audits (compliance
audits). The hallmarks of these audits are
the high standards and the hiring of external
environment and energy auditors. The site
results method records sites' impact on the
environment: data and key figures rate essen-
tial environmental aspects on a scale of high,
medium and low relevance. From this, Porsche
derives all necessary measures to reduce
or eliminate possible negative impacts on
the environment. The Environment and Energy
steering committee works cross-depart-
mentally. The committee assesses the pre-
defined goals regularly and initiates
appropriate steps.
paredness, water and nature conservation and
energy efficiency. The responsibility and the
systematic implementation of necessary steps
lies with the Member of the Executive Board
for Production and Logistics, supported by the
Environment and Energy Management depart-
ment. The fundamental aim is that every
Porsche employee is cognizant regarding the
effects of his or her job on the environment.
Every employee is called upon to observe the
Group's guideline concerning minimisation
of impact on the environment or even avoiding
it entirely in the best-case scenario.
of rules and strategic
guiding principles
The mobility options offered to employees are
another main focus. An interdepartmental
project has the aim of improving the traffic sit-
uation and the mobility of the staff at Porsche's
different locations in the long term, thanks
to a wide range of measures and initiatives. This
applies particularly to the main plant in Zuffen-
hausen, which is located in an urban area. Em-
ployees receive, for example, a monthly subsidy
to buy a company ticket for local public trans-
The car's exclusive character is emphasised by
design highlights created solely for this model,
such as Carmine Red elements on the front
spoiler, rear apron and sideblades. The "Macan
Turbo" model designation also appears in
Carmine red below the Porsche insignia in
high-gloss black at the rear.
OPZES
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Stuttgart hosts global electromobility
conference for first time
Stuttgart holds global electromobility confer-
ence for the first time The International Elec-
tric Vehicle Symposium & Exhibition (EVS30)
was held for the first time in Stuttgart in
October. As the electromobility industry's larg-
est and leading event worldwide, it attracts
experts from around the globe who report on
the latest technologies, developments and
trends. Porsche was both a sponsor and an
exhibitor at the EVS30.
The technological changes brought about by
electromobility require a wide range of new
strategies and solutions. Major topics included
new approaches to products and production,
regional mobility strategies and solutions,
and mass market access. Some 250 experts
gave talks on the latest developments in fuel
cell and battery research as well as charging
technology, electricity sources and supply,
integrated product solutions, digitalisation
including intelligent charging infrastructure,
and connected approaches to mobility.
Porsche was represented by ten speakers
at the symposium, and presented three major
exhibits: the 919 Hybrid that won Le Mans,
the Cayman e-volution as a "research lab on
wheels" and the high-speed charging system
known as Porsche Turbo Charging which cele-
brated its premiere at the EVS30 and will be
installed worldwide starting in autumn 2018.
The Festival of
S:GO 5060
This "sports car among SUVs" is meticulously
hand-finished in the Porsche Exclusive Manu-
faktur workshop at the Leipzig production site.
The Macan Turbo Exclusive Performance
Edition's unique appearance is based on the
standard Turbo exterior package, which in-
cludes 21-inch 911 Turbo Design wheels with
spokes painted high-gloss black on the sides,
LED main headlights and tinted rear lights.
The "Touring Package" name recalls a set of
equipment for the 911 Carrera RS from model
year 1973. Then, too, the focus was on purist
911 design and classic interior features. The
new 911 GT3 with Touring Package picks up on
and modernises this idea. In keeping with the
character of a purist GT car, high-grade leather
features prominently in the interior. Smooth-
grained leather lines the steering wheel with a
12-o'clock marker, shift lever, door-panel arm
rests, storage compartment cover on the cen-
tral console and door handles.
Porsche Exclusive Manufaktur refines the
most powerful Macan
911 GT2 RS
The 911 GT3's body has impressively large air
inlets in its specially designed front end, as
well as the model's typical air outlet in front
of the luggage compartment lid. Forged light-
weight metal wheels with central locking
dominate the side view. With the body 44 mil-
limetres broader at the wheel arches than the
911 Carrera, the tyres leave a powerful im-
pression. The body has also been lowered by
25 millimetres, which accentuates the broad
appearance. This car appeals to fans of
high-calibre sports cars who have a strong
predilection for understatement and classic
driving pleasure.
The 911 GT3 with Touring Package joined
the ranks of purist high-performance sports
cars with its debut in September at the
International Motor Show in Frankfurt am Main
(IAA). The car only comes with a manual six-
speed gearbox, and has a variable rear spoiler.
Its four-litre naturally aspirated racing engine
generates 368 kW/500 hp and develops
460 Nm of torque. With optimal gear shifting,
the 911 GT3 with Touring Package powers
from zero to 100 km/h in 3.9 seconds, and
has a peak speed of 316 km/h.
911 GT3 with Touring Package
Premiere at the IAA:
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Speed in Goodwood
72
Porsche presented the Macan Turbo Exclusive
Performance Edition, an especially elegant
variant of the flagship Macan model, in Octo-
ber. This Edition model is based on the Macan
Turbo with Performance Package, which
has a 3.6-litre V6 turbocharged engine that
generates 324 kW/440 hp. The car is only
available in selected markets. Exclusive design
features on both the exterior and interior ac-
centuate the especially sporty character of this
most powerful derivative in the model line.
(United Kingdom)
Production
of the 911 GT2 RS -
the fastest and most
powerful 911 of
all time.
Porsche strengthened its digital customer
presence yet again in 2017. With My Porsche,
the Connect portal revised in 2016 was ex-
panded as a personal interaction platform for
the customer with Porsche and introduced
in some initial markets. Customers and poten-
tial buyers now have access to the entire
digital and service portfolio custom-tailored to
their individual needs using their Porsche ID.
The range is continuously being expanded and
already includes numerous Connect services,
remote vehicle information, after-sales func-
tions and smart mobility products.
The German Tennis Federation (DTB) and
Porsche are extending their premium partner-
ship until 2020. This cooperation, which
chiefly comprises the support of Porsche Team
Germany in the Fed Cup and of young players
in the Porsche Talent Team, has existed since
2012. An example of the successful promotion
of top talents is Carina Witthöft, a member
of the Porsche Talent Team up to the start of
2016. The 22-year-old from Hamburg is about
to enter the top 50, made her first appearance
in the Fed Cup Team in April, and won her
first title on the WTA Tour in Luxembourg in
October. Julia Görges from Porsche Team
Germany has now won her fourth title. In the
final of the WTA Elite Trophy in Zhuhai, China,
at the beginning of November, she beat the
American Coco Vandeweghe 7:5, 6:1, marking
the biggest success of her career. This means
that the 29-year-old from Bad Oldesloe
goes into the winter break as number 14 in
Process and customer management
CRM@Porsche is the central process and
customer management platform for all
affiliated subsidiaries and their dealers and is
integrated across all sales levels. The platform
also includes all further customer-related
applications. To ensure successful and efficient
management of the customer journey, the
continuous development of CRM@Porsche is
essential. The goal is a fully integrated back-
end of the current and future customer eco-
system. The platform will therefore be further
developed technically, functionally and visually
in the coming years. In 2017 the emphasis
of the project CRM@Porsche 2017+ was on
technical readiness. The focus here was
on preparing the implementation of new pro-
cesses, functions and applications. There are
also plans to develop a new user experience
that guides and supports users through the
processes and functions.
"Excite! Driving Global
Customer Culture"
initiative, the company
aims to further enhance
its customer focus. The
project is initially being
introduced as a pilot
project at Porsche Cars
North America and
Porsche AG in Germany.
With the start of the
With the start of the "Excite! Driving Global
Customer Culture" initiative, the company
aims to further enhance its customer focus.
The project is being introduced as a pilot
project at Porsche Cars North America and
Porsche AG in Germany. The project focusses
on two key questions: How can the internal
customer focus be further enhanced? And how
can employees' proximity to customers be
further enhanced? Understanding, knowledge
and empathy play a central role here. Based
on comprehensive analyses of the customer
culture, in 2017 top management defined
customer-orientation guidelines. Training
and coaching for the implementation of these
guidelines have been successfully initiated
and will be continued and expanded through
innovative tools in the years to come.
In 2017, Porsche concentrated on improving
customer service through a variety of differ-
ent projects. In addition to strategically impor-
tant external studies and comparisons with
the competition, Porsche also conducts its
own continuous measurement of customer
satisfaction with sales and service processes.
Real-time reporting has been set up that
directly informs responsible parties within
the system of customer feedback.
Customer service further improved
SALES
Procurement
Sales, production, procurement
Sales
75
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance Research and development
911 CARRERA T
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
74
Worldwide innovation: New PSCB brake for
greater performance and sustainability
Porsche places the highest priority on safety
for its own products and especially for every-
one on the roads. The company has therefore
always devoted special attention to devel-
oping and continuously improving its braking
technologies. With the latest generation of the
Cayenne, Porsche has introduced an innovative
grey-iron brake disc that sets new standards
worldwide in performance and sustainability.
The Porsche Surface Coated Brake (PSCB)
features discs with an extremely hard coating
made of tungsten carbide along with specially
developed pads. This new system has consid-
erably better properties than conventional
grey-iron brakes. In addition to unique visuals,
these include further optimised responsive-
ness and very high fading stability also under
extreme conditions. As for sustainability,
the PSCB breaks new ground with considerably
less wear than conventional uncoated brake
discs. Brake service lives are thereby length-
ened by at least 30 per cent, or even more
depending on usage. In addition to significantly
reduced wear, the brake produces around
90 per cent less of the usual dust. This means
lower particulate levels and better environ-
mental compatibility - coupled with better
performance. Thanks to its innovative coating,
the new brake is absolutely corrosion-free
and shows constant friction values throughout
its entire service life. The PSCB is standard
in the Cayenne Turbo and an option for all other
Cayenne models. Plans call for rolling it out to
additional model lines.
S&T 2017
In October, Porsche presented the 911 Carrera T, a new take on the purist 911 T of 1968 - lower
weight, shorter transmission ratios for the manual gearbox, and rear-wheel drive with a mechani-
cal rear differential lock. Based on the 911 Carrera, this new model has its own visuals and
delivers 272 kW/370 hp. The 911 Carrera T - "T" stands for Touring at Porsche - has additional
elements not found in the 911 Carrera. These include PASM sports suspension with a 20-milli-
metre lowered body as a standard feature, a weight-optimised Sport Chrono Package, shortened
gear lever with a red shift diagram, and Sport-Tex seat centres. The 911 Carrera T also has op-
tional rear-axle steering, which is not available for the 911 Carrera. All the features are designed
to enhance sportiness and lower the weight. Sound insulation is reduced to a minimum. The
car does not have rear seats or Porsche Communication Management (PCM), although both are
available at no extra cost if desired. With an empty weight of 1,425 kilos, this two-seater is
20 kilos lighter than a 911 Carrera with comparable systems.
Less is more - the new Porsche 911 Carrera T
provided the setting for
the world premiere
Porsche continues as premium partner
of the DTB
In May, 13 young talents from the Porsche
Basketball Academy (BBA) visited Porsche AG's
training centre. Trainees presented their fields
of activity, their day-to-day training routines,
current projects and the eight different
technical training vocations. In addition, the
team from the U16 Youth Basketball Federal
League received general tips on applications
and career choice.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
Porsche honours young athletes
The final round of the third young footballers' tournament organised jointly by Porsche and
RB Leipzig, the Leipzig Quarter-Finals, was held at the beginning of August. The tournament
registered a new record number of participants: more than 1,000 boys and girls in over
100 teams in the age groups U11 and U14 competed for their districts in the preliminary rounds
in June. A particularly motivating factor for the young talents is that four professionals from
RB Leipzig each sponsor a district. The award ceremony in the Red Bull Arena, part of the
professional team's opening to the season, was viewed by more than 21,000 spectators - an
unforgettable moment for the young footballers.
Record number of participants at Leipzig Quarter-Finals
Talents from the Basketball Academy
visit Porsche
The Porsche Coaching-Mobil has been on
the road since April - and not just with the
five partner clubs in the Stuttgart and Leipzig
regions. Over 3,000 children and young
people have taken part in the 28 initiatives so
far. The Coaching-Mobil is a trailer specially
developed for youth training, which is fitted out
with sporting equipment and instruments to
measure performance data. This gives young
talents the opportunity to evaluate their sports
performance better and to adjust their further
training accordingly. In addition, age-depend-
ent reference values provide a benchmark for
comparing results.
Porsche Coaching-Mobil
Porsche has commitments in many different
sports, with particularly significant involve-
ment in women's professional tennis and
men's professional golf. Since competitive
sport is not possible without comprehensive
basic training, Porsche supports the next
generation at its production locations. Under
the motto "Turbo for talents", the company
sponsors children and adolescents in foot-
ball, basketball and ice hockey in Stuttgart
and Leipzig. Its partner clubs are RB Leipzig,
SG Sonnenhof Großaspach, SV Stuttgarter
Kickers, SC Bietigheim-Bissingen Steelers and
the Porsche Basketball Academy Ludwigs-
burg. The aim of this cooperation is to support
the next generation both in sports and also
socially, and to prepare them for their future
professional life.
SPORT
63
150 young athletes from RB Leipzig, SV Stutt-
garter Kickers, SG Sonnenhof Großaspach
(football), SC Bietigheim-Bissingen Steelers
(ice hockey) and the Porsche Basketball
Academy Ludwigsburg came to Leipzig for
the second "Porsche Night of Talents". The
highlight was the award of the Turbo 2017
prize, presented in three categories: best
sporting development, best school achieve-
ment and exceptional social commitment.
TV series Tatort police commissioner Richy
Müller was among those presenting the prizes
to the winners. In addition, the participants
visited the production department and got
to know the performance of various Porsche
models during "taxi rides" on the circuit.
Performance Employees, society, sport
EXMOOR PONIES AT PORSCHE LEIPZIG
Porsche Cars North America launched the Porsche Care Network in 2011; this initiative
organises the Porsche employees' volunteer work. The focus of these efforts is on the
environment, family and education projects. More than 750 working hours were donated in
2017. The projects undertaken by the employees included cleaning up a section of the
Chattahoochee River, and planting trees at the site. In addition, they put together food
packages for needy families and launched an education project that uses fun activities to
teach children about how to handle money.
In 2017, Porsche Leipzig also donated eight Exmoor ponies to two charitable associations in
Saxony and Thuringia. The animals are frequently donated to selected charities in order to
manage the pony population at Porsche Leipzig.
At the beginning of May, 25 bee colonies populated with some 60,000 bees each moved in to
the grass meadow at Porsche Leipzig's off-road test area. The 132-hectare area, in which nature
is allowed to take its course, is now home to 1.5 million honey bees. The aim of this relocation
is to help secure the future of the honey-bee population and thus promote environmental protec-
tion and conservation. The diversity of flora in the off-road facility 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
species such as pheasants, black kites, amphibians, brown hares, deer and bats live here too.
The concept is unique in the automotive industry. Porsche Leipzig is ensuring sustainable,
low-resource automobile production with a commitment to nature and the environment right
from the word go. The plant's off-road area was once a military zone and was restored to its
natural state in 2000.
of old mobile telephones and small electrical appliances on their way to work. Transparent
processes provide users with visibility and insight into the recycling chain. They can follow their
old devices as they progress through the system. As a thank you, each participant received a
discount coupon for use in 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 innovation in Leipzig.
tee
binee
BINEE START-UP
Recognition and prizes from all quarters
Numerous international studies have confirmed
the positive effects of the customer service
and customer satisfaction measures. In 2017,
Porsche came out tops in the overall rankings
of the Automotive Performance, Execution and
Layout Study (APEAL) quality study by the
US market research institute J.D. Power for the
13th straight year. Porsche thus remained
the automobile brand with the highest attrac-
tiveness for customers in the US. Moreover,
the Porsche 911, Cayenne and Macan models
also topped their respective categories. The
survey involved more than 69,000 new car
owners, who rated 243 models from 33 man-
ufacturers in ten categories. Also conducted
in the US by J.D. Power, the Initial Quality
Study (IQS) annually surveys new car custom-
ers regarding defects in their vehicles. With
its repeat top ranking, the sports-car icon
911 led the tables for the sixth year in a row
in the "Midsize Premium Sporty Car" category.
US customers have thus rated the legend
from Zuffenhausen as having the best quality
every year since 2012. The Macan took top
honours in the "Compact Premium SUV" seg-
ment. Since its survey debut in 2015, it has
thus headed the category three times on the
trot. The Porsche plant in Leipzig once again
took gold and thus the top spot among all
plants in Europe and Africa.
62
65
Porsche Nacht der Talente
Tennis
Performance Employees, society, sport
In its anniversary tournament, the Porsche
Tennis Grand Prix also supported charitable
organisations which promote the well-being
of children throughout the world with its Aces
for Charity campaign. Porsche donated 200
euros for each ace. In 2017, 179 aces were
struck on the way to the final - and Porsche
rounded the 35,800 euros generated up to
40,000 euros. The sum will be shared equally
between the Agapedia Foundation and Plan
International, both of which are charity partners
of the Porsche Tennis Grand Prix.
40,000 euros for children in need
LAURA SIEGEMUND
Ice hockey meets basketball
Under the motto "Turbo for talents connects",
Porsche initiated a joint training unit for two
junior teams from ice hockey and basketball
at the beginning of September. At the
invitation of the U19 ice hockey aces from the
Bietigheim Steelers, the young athletes met
in the ice rink in Bietigheim-Bissingen. Over
the course of the evening, the NBBL junior
team from the Porsche Basketball Academy
(BBA) Ludwigsburg gained insights into the
Steelers' training methods.
64
LEIPZIG QUARTER-FINALS
In April, Porsche and the Women's Tennis
Association (WTA) entered into a global
partnership which will run for several years.
Porsche will be the official and exclusive
automobile partner of the WTA and, under the
heading Porsche Race to Singapore, the
new title partner for the qualifying rankings for
the WTA Finals in Singapore. The campaign
will run throughout the season and will
culminate in the WTA's showcase event with
the eight most successful singles players.
The player who, after 57 tournaments - that
is, after the 57th round - leads the results list
in the Porsche Race to Singapore at the end
of the season is not only ensured a starting
place in the prestigious final tournament of the
season but is also rewarded with a Porsche
911 Carrera GTS. The first winner is the
26-year-old Romanian Simona Halep, who
received her winner's vehicle during the
WTA Finals. Coming on top of the Porsche
Tennis Grand Prix and Porsche's involvement
in German women's tennis, the Porsche Race
to Singapore now makes the sports-car
maker a visible presence in tennis throughout
the whole year.
New global partnership between Porsche
and the WTA
PORSCHE HONOURS YOUNG ATHLETES
EXCLUSIVE AUTOMOBILE PARTNER OF THE WTA
PORSCHE
In April, Porsche and
the Women's Tennis
Association (WTA)
entered into a global
partnership which will
run for several years.
Porsche will be the
official and exclusive
automobile partner of
the WTA and, under
the heading "Porsche
Race to Singapore", the
new title partner for
the qualifying rankings
for the WTA Finals in
Singapore.
Performance Research and development
0
ם
TS
arrera
In April, in a final filled with excitement and
drama, Laura Siegemund fulfilled her dream:
the Porsche Team Germany player won the
40th Porsche Tennis Grand Prix. In the sold-
out Porsche Arena, the local heroine beat the
French player Kristina Mladenovic 6:1, 2:6, 7:6.
She was presented with the keys to the
winner's car, a 911 Carrera 4 GTS Cabriolet,
by Porsche CEO Oliver Blume. The doubles
winners were Raquel Atawo (US) and Jelena
Ostapenko (Latvia). Maria Sharapova, three-
time winner in Stuttgart, returned to the
WTA tour amidst worldwide attention after a
15-month ban. The American player Tracy
Austin, who became the crowd favourite in
1978 as a 15-year-old teenager at the first
Porsche Tennis Grand Prix in Filderstadt, was
the anniversary guest. The 40th edition of
the tournament was not only a huge success
with the public; the players, too, enjoy this
traditional championship more than any other
in the Premier 700 category on the WTA tour.
In 2017, they once again voted the Stuttgart
event the most popular tournament - for the
ninth time since it moved to the Porsche arena
in 2006 and for the fourth time in succession.
40th Porsche Tennis Grand Prix
RACE TO SINGAPORE
The US consumer magazine Kelley Blue Book
handed out a total of four Brand Image Awards
to the sports-car maker: the Porsche brand in
the "Best Performance Luxury Brand" category,
the Porsche Macan in "Best Resale Value -
Luxury Compact SUV/Crossover", the Porsche
Panamera in "Best Resale Value - High-End
Luxury Car", and the Porsche 718 Cayman in
"Best Resale Value - Sports Car". Readers
of the US car magazine Car and Driver placed
the Porsche 718 Boxster and Cayman among
the "10 Best Cars" and the Porsche Macan
among the "10 Best Trucks/SUVs".
In July, Porsche was, for the third time, the title partner of the prestigious European Tour tourna-
ment, which has a prize fund of two million euros. After two years in Bad Griesbach, Bavaria,
the tournament moved to northern Germany to the Green Eagle golf course, just outside
Hamburg. The tournament weekend was rung in with the Porsche European Open Team Challenge,
a golf show on the Reeperbahn, in which eight top stars of the event took part in a team com-
petition. Over four tournament days, nearly 40,000 enthusiastic spectators followed the victory
of Englishman Jordan Smith in the play-off against the French defending champion Alexander
Lévy. For 24-year-old tour rookie Smith, this was his first victory on the European Tour.
S.GO 6060
Research and development
67
Performance Employees, society, sport
near Lisbon, the starting signal was sounded
for the Porsche Golf Circle. This is an interna-
tional, app-based community exclusively for
Porsche customers who are golf enthusiasts.
The sports-car maker is thus continuing to
develop its commitment to golf. Anyone who
owns a Porsche can become a member of
the Porsche golf network. The platform for it
is an app for Android and iOS which enables
members to come into contact with other
participants in the community, find playing
partners worldwide and obtain information
about current Porsche golfing activities. In
addition, further services are planned such as
training tips in the form of digital golf tutorials,
assistance on the rules and experience reports.
From 2018, the highlights of the Porsche
Golf Circle will be exclusive event formats all
over the world.
Porsche initiates a global golfing network
Teeing off into digital worlds: in October, at the
Founding Member Event in Penha Longa,
More than 12,000 amateur golfers partici-
pated worldwide in the 200-plus preliminary
round tournaments of the Porsche Golf Cup
2016. This meant that the record number of
participants from the previous season was
once again exceeded and illustrates the
growing interest of Porsche customers in golf.
The best 98 players from 20 nations qualified
for the world final in May 2017 in Mallorca.
The winner of the prestigious nations ranking
was Team Great Britain. This exclusive amateur
tournament series for customers has existed
since 1988 and is organised by Porsche AG
together with the Porsche Centres and Porsche
distribution companies. In the year under
review, the Porsche Golf Cup in Germany
celebrated its 30th edition.
its 30th edition
Porsche Golf Cup celebrates
Porsche European Open in Hamburg
RESEARCH AND DEVELOPMENT
PORSCHE GENERATIONS OPEN
PORSCHE
Generations Open
JORDAN SMITH
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
The innovative amateur golf tournament
series, the Porsche Generations Open,
was staged for the second time in Germany
in 2017. Once again, the response to the
three tournaments was consistently positive.
The concept of a team competition with
players from two generations with a minimum
age difference of 20 years has also evoked
international interest - Porsche Great Britain
and Porsche Brazil adopted this format in
the year under review.
Porsche Generations Open
Golf
Porsche Team Germany
has now won her fourth
title. In the final of
the WTA Elite Trophy in
Zhuhai, China, at the
beginning of November,
she beat American
Coco Vandeweghe 7:5,
6:1, marking the biggest
success of her career.
Julia Görges from
ww generations-open.com
66
New 911 GTS models
World premieres in Geneva
70
911 TURBO S EXCLUSIVE SERIES
at the Porsche Exclusive
Manufaktur workshop in
Zuffenhausen.
the 911 Turbo S Exclusive
Series include its unique
design, luxurious details
and higher-grade
materials. The sports car
is finished by hand with
meticulous craftsmanship
Impressive features of
Impressive features of the 911 Turbo S include
its unique design, luxurious details and higher-
grade materials. The sports car is finished
by hand with meticulous craftsmanship at the
Porsche Exclusive Manufaktur workshop
in Zuffenhausen. In addition to producing
limited-edition series, this in-house workshop
specialises in personalising Porsche cars.
Customers can choose from a large number
of specially developed optional features.
the 911 Turbo S Exclusive Series
In the summer Porsche introduced the
911 Turbo S Exclusive Series, a limited
edition of 500 cars. The coupe generates
446 kW/607 hp, or 27 hp more than the
standard 911 Turbo S. Its 3.8-litre bi-turbo
flat-6 engine with an exclusive power kit
has a peak torque of 750 Nm that is available
between 2,250 and 4,000 rpm. The Turbo S
sprints from zero to 100 km/h in 2.9 seconds,
with a peak speed of 330 km/h. Its combined
fuel consumption, which does not differ from
the standard model, is 9.1 l/100 km and
corresponds to 212 g/km of CO2 emissions.
Luxurious:
SIG SAL
Porsche has continued to expand its 911
product range by adding five GTS models.
The 911 Carrera GTS with rear-wheel
drive and the 911 Carrera 4 GTS with
all-wheel drive are both available as a coupe
and cabriolet. The 911 Targa 4 GTS with
all-wheel drive has also joined the portfolio.
Newly developed turbochargers for the
3.0-litre flat-6 engine raise its performance
to 331 kW/450 hp. The drive system has
22 kW/30 hp more than the 911 Carrera S
and 15 kW/20 hp more than the previous
GTS model with a naturally aspirated engine.
PANAMERA TURBO S E-HYBRID
The 911 GT3 presented by Porsche in Geneva
is a racing-based two-seater with systematic
lightweight construction that is ideal for
both motorsport and everyday use. The heart
of the 911 GT3 - its flat-6 engine with
368 kW/500 hp - have been completely re-
designed by Porsche Motorsport and is already
being used in adapted form in the 911 GT3 R,
911 Cup car and 911 RSR. The newly con-
ceived variable intake system made of light-
weight synthetic material has two integrated
resonance butterflies compared to just one
in the predecessor model. Depending on load
and engine speed, these open singly or simul-
taneously to enable a considerably higher
torque curve than before. One beneficial side
effect consists of efficient load alteration that
enhances fuel consumption. Both the re-
worked chassis with rear-wheel steering and
the systematic lightweight construction are
designed to convert engine power into out-
standing driving dynamics.
six hours using a 230-volt 10-amp connection.
With the optional 7.2-kW on-board charger
and a 230-volt 32-amp connection instead of
the standard 3.6-kW system, the Panamera's
battery can be fully charged in 2.4 hours.
S:GO 3400
911 GT3
The second hybrid version of the Panamera is
the first plug-in hybrid to be positioned at
the top of a Porsche model line, reflecting the
great importance that the company attaches
to electromobility. The new 500-kW/680-hp
Panamera Turbo S E-Hybrid adds an electric
motor to the 4-litre V8 engine from the
Panamera Turbo. This generates overall system
performance of 500 kW/680 hp and impres-
sive power development with 850 Nm of
torque available at just above idling speed.
This in turn enables acceleration from zero to
100 km/h in 3.4 seconds and a peak speed
of 310 km/h. The boost strategy for this flag-
ship Panamera model with all-wheel drive
comes from the 918 Spyder super sports car.
Average fuel consumption in the New European
Driving Cycle is 2.9 l/100 km, and the fully
electric range can reach 50 kilometres. The
electric motor is powered by a liquid-cooled
lithium-ion battery with an energy capacity of
14.1 kWh. Integrated into the rear of the car,
the high-voltage battery can be fully charged in
The car comes in four model versions: the
Panamera 4 Sport Turismo, Panamera 4
E-Hybrid Sport Turismo, Panamera 4S Sport
Turismo and Panamera Turbo Sport Turismo.
PANAMERA TURBO SPORT TURISMO
One special feature is its adaptive roof
spoiler-currently the only one in its segment.
Depending on the driving situation and vehicle
settings, the spoiler can occupy one of three
levels and generate up to 50 kilos of additional
downforce on the rear axle. At speeds of up
to 170 km/h this aerodynamic guide element -
a key system component of Porsche Active
Aerodynamics (PAA) - remains retracted at an
angle of minus seven degrees which reduces
drag and thereby optimises fuel consumption.
Above 170 km/h the roof spoiler automatically
extends to the performance position with
an angle of plus one degree, where it enhances
driving stability and lateral dynamics.
Porsche ushered in the spring with three
spectacular world premieres at the Geneva
Motor Show in March. The Panamera Sport
Turismo gives the Panamera family a new
body version. Based on the successful sports
saloon, the new model's unique design
makes a new statement in the luxury segment.
Generating up to 404 kW/550 hp, the four-
door Sport Turismo is also more versatile
than any other member of its class. With a
large tailgate, low loading sill, larger luggage
volume and 4+1 seating concept, this new
car meets high demands for everyday usability
and flexibility.
718 CAYMAN GTS
In Germany, over 120,000 readers of the trade
magazine auto motor und sport gave top hon-
ours to Porsche 911 Carrera and the Porsche
911 Cabrioletas in the previous year - in
the "Best Cars 2017" rankings in the sports-
car and convertible categories, respectively.
The new Porsche Panamera, meanwhile, took
victory in the luxury class in its debut year.
Readers of sport auto named Porsche models
best in class in four out of ten categories. The
718 Boxster S, 911 Carrera GTS, 911 Carrera
GTS Cabriolet and the 911 GT3 all conquered
their respective competitors. Porsche was the
most successful manufacturer in the survey.
The British magazine Top Gear honoured the
Porsche 911 GT3 with its "Engine of the Year"
MARIA SHARAPOVA
Porsche brand ambassadors
S.GO 500
Porsche Connect Plus
Porsche has raised connectivity to a new
level in the new Cayenne. The many different
options are a key component of Porsche
Connect Plus, which is standard in the new
SUV generation. Drivers can now use Porsche
Communication Management (PCM) to ac-
cess Amazon Music, smart-home services
from Nest, and Radio Plus, an intelligent
combination of conventional and online radio
reception. An integrated LTE-compatible
SIM card enables the new Cayenne to be per-
manently online, which is also a standard
feature. In addition, Porsche has developed
a simplified smartphone app for the main
Connected Car functions. And Amazon Music
subscribers can enjoy one of the most popular
streaming services in the Cayenne directly
via PCM. Amazon Music offers not only a wide
range of music but also other entertainment
services in Germany such as live audio stream-
ing of Bundesliga football matches.
The further developed online navigation system
with real-time traffic information is now even
simpler, faster and more comprehensive. A
central "finder" - whose icon is a magnifying
glass in the PCM's header - makes it easy
to search for destinations. The finder also offers
a lot of additional information such as petrol
prices, locations of parking garages including
their prices and opening times, and user re-
views of hotels and restaurants. The new Voice
Pilot function makes it just as simple to give
spoken commands to the navigation system.
Porsche's voice control has again been further
enhanced. Online speech recognition makes
voice input more intuitive than before. For
example, destinations can be entered without
all the details in the address.
The route calculation system has also been
optimised, thanks to simultaneous processing
of on-board and online information. It calcu-
lates routes both internally in PCM and online.
PCM automatically selects the best route,
but always starts with the one calculated first.
The navigation system also uses the new Risk
Radar service to process swarm data: this
data has been gathered and transmitted anon-
ymously by vehicles equipped with special
sensor systems to detect conditions like fog,
slippery driving surfaces and accidents. The
new Cayenne can therefore help to reduce
risks and prevent accidents.
GT2 RS is the fastest 911 of all time
The Festival of Speed in Goodwood (United
Kingdom) provided the setting for the world
premiere of the 911 GT2 RS - the fastest and
most powerful 911 of all time. The heart of
this high-powered sports car is a bi-turbo flat-
6 engine with 515 kW/700 hp that acceler-
ates the 1,470-kilo two-seater with a full tank
of fuel from zero to 100 km/h in 2.8 seconds.
Its peak speed is 340 km/h. The 911 GT2 RS
set a new record for road-authorised sports
cars on the Nürburgring-Nordschleife (Nürburg-
ring north loop) with a time of 6:47.3. As usual
for record laps, this was measured on the
20.6-kilometre circuit. The average speed was
184.11 km/h.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
Performance Sales, production, procurement
79
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Porsche has raised
connectivity to a new
level in the new
Cayenne. The many
different options are a
key component of
Porsche Connect Plus,
which is standard in
the new SUV generation.
78
Dealership Sustainability Initiative
With its Dealership Sustainability Initiative,
Porsche supported the planning, construction
and operation of environmentally sustainable
Porsche Centres. One innovative example was
the development of a photovoltaic carport
that is now being used at Porsche dealerships
worldwide. Specially designed for Porsche
vehicles, the carport enables the charging
of plug-in hybrid and electric vehicles with
locally generated renewable energy. It also
protects against weather conditions. The ele-
gant support structure with integrated Porsche
universal chargers (AC) features a roof struc-
ture made of semi-transparent glass-glass
photovoltaic modules. For two parking places,
for example, they generate more than 3,000
kilowatt-hours of energy per year - enough
electricity for over 200 battery charges for
a Panamera 4 E-Hybrid, which corresponds to
an electronic range of roughly 10,000 kilo-
metres. The photovoltaic carport celebrated
its premiere on the North Sea island of Sylt.
Plug-in hybrid vehicles hired out by Porsche
Drive can be charged there. Further locations
are already in the pipeline.
in the US.
In 2017, Porsche came
tops in the overall
rankings of the Auto-
motive Performance,
Execution and Layout
Study (APEAL) quality
study by the US market
research institute
J.D. Power for the 13th
straight year. Porsche
thus remained the
automobile brand with
the highest attractive-
ness for customers
GOLDEN STEERING WHEEL:
PANAMERA TURBO SPORT TURISMO
BEST CARS 2017: PANAMERA 4S
For the 14th time, Auto Bild and Schwacke
named their "Value Champion". The award
compares all models sold in Germany in 13
vehicle segments and names the vehicle with
the most stable value in each class. With a
value loss of just 34.7 per cent after four years,
the Porsche Macan S Diesel again took the
title as the most stable-valued car in Germany.
In total, Porsche scored four class wins: in
addition to the Macan, the 718 Cayman S PDK
won the sports-car class, the Panamera 4S
Diesel the luxury class and the Cayenne Diesel
the SUV class.
And in winning the "Golden Steering Wheel"
from Bild am Sonntag and Auto Bild, the
Panamera Sport Turismo was named the best
sports car of 2017, securing one of the most
important European automobile awards.
The Golden Steering Wheel has been awarded
by the publications of the Axel Springer
publishing house since 1976 and is regarded
as the Oscars equivalent for cars, with its
exceptional international renown.
award and the Porsche 911 GT2 RS with the
Code Brown Award as the "Scariest Device
of the Year".
APEAL AND KELLEY BLUE BOOK: MACAN
Porsche was also honoured worldwide for
sustainable construction in 2017. In China,
the Porsche Centre Shanghai Waigao-qiao re-
ceived the "LEED Gold" certification. In the US,
the Porsche Experience Centre in Los Angeles
was rated "LEED Certified".
Maria Sharapova, Porsche ambassador since 2013, won the WTA Tour tournament in Tianjin,
China, in October. It is the 36th title won by the multiple Grand Slam winner. Angelique Kerber
has been a brand ambassador since 2015. In October 2017, she received the Jerry Diamond
ACES Award from the WTA. This prize is awarded to the player who makes an exemplary
contribution off the court to promoting public interest in women's tennis. The former world
number one earned the award, the jury said, because of her regular commitment to charity
events and fan events around the world, as well as her numerous initiatives with children.
CAYENNE TURBO
The Cayenne has been thoroughly digitalised
and networked. Its expanded range of perfor-
mance from sportiness on the one hand to
comfort on the other is due not least of all to
the new eight-speed Tiptronic S gearbox.
Shorter response times and sportier ratios in
the lower gears enhance both on-road perfor-
mance and off-road capacities. At the other
end of the expanded range, the long-transmis-
sion eighth gear ensures low rpm levels and
optimises fuel consumption on leisurely drives.
JULIA GÖRGES
far for the winner of the Porsche Tennis Grand
Prix 2011.
the world rankings - the best ranking so
As part of the Porsche sustainability strategy,
Porsche Leipzig has joined forces with binee,
a local recycling start-up based in Saxony.
Founded in 2015, this company has developed
a recycling system that pays for old, unwanted
electrical items and aims to reuse their com-
ponents. This reduces the need to extract
raw materials such as iron ore. Employees at
Porsche Leipzig took part in a three-month
pilot phase in which they could easily dispose
Performance Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
71
CARBON WHEELS
Carbon wheels: exclusive innovation
Porsche is the world's first car manufacturer
to offer lightweight wheels with braided
carbon fibre. They are available as an option
for the Porsche 911 Turbo S Exclusive Series.
The high-tech carbon material's characteri-
stic black colour is shown to full advantage
under a protective clear coating.
Shortly after the world premiere, Porsche
presented the Cayenne Turbo. The new flag-
ship of this SUV generation, it significantly
raises the standard for sporty performance in
its segment yet again. Its four-litre bi-turbo V8
engine generates 404 kW/550 hp. Innovative
technologies like the active aerodynamics
including a roof spoiler, the controlled three-
chamber pneumatic suspension, mixed tyres
and a new high-performance braking system
combine to lay the foundation for even better
driving dynamics.
The innovative wheels weigh a total of approx-
imately 8.5 kilos, or 20 per cent less than
and pleasure.
LOBEN
REMOVE
PORSC
The new Porsche 718 GTS models
Porsche has added the new 718 Boxster GTS
and 718 Cayman GTS two-seaters to its
family of mid-engine cars. A newly developed
intake duct and an optimised turbocharger
have increased performance to 269 kW/
365 hp, so the 2.5-litre flat-4 engine gener-
ates 11 kW/15 hp more output than the
718 S model and up to 26 kW/35 hp more
than the previous GTS models with naturally
aspirated engines.
Porsche Active Suspension Management
(PASM) lowers the body by ten millimetres.
Peak torque of up to 430 Nm enables even
better acceleration and flexibility values.
It is available between 1,900 and 5,000 rpm.
Together with a Porsche double-clutch trans-
mission (PDK) and Sport Chrono Package,
the GTS models race from zero to 100 km/h
in 4.1 seconds. The peak speed is 290 km/h.
The GTS cars stand out in the 718 model line
in technical but also visual terms. The new
Sport Design front apron accentuates their
sporty character. Their front light modules and
bi-xenon headlights are tinted black in the
typical GTS manner.
New Cayenne celebrates world premiere
Porsche held a spectacular event in Zuffen-
hausen in August to present the third gen-
eration of the Cayenne. More than 770,000
cars in this model line have been sold since
2002. The completely redeveloped third gen-
eration of the SUV is more precise, elegant,
athletic and expressive, and influenced strong-
ly by the 911. It now offers mixed tyres and
rear-axle steering for the first time. Despite an
expanded range of standard equipment, it
weighs up to 65 kilos less thanks to intelligent
lightweight construction. Its exterior shell is
made entirely of aluminium, as is its floorpan
assembly, front section and nearly all of its
chassis components.
Of special technical note is its innovative
lithium-ion polymer starter battery, which
alone makes the car ten kilos lighter than
the previous model. This new-generation line
was launched with two newly developed
six-cylinder petrol engines that generate
250 kW/340 hp in the Cayenne and 324 kW/
440 hp in the Cayenne S.
the standard lightweight alloy wheels, and are
20 per cent stronger at the same time. This
lower unsprung weight enables the tyres to
trail the surface of the road better and transfer
longitudinal and lateral forces in optimised
form. Lower rotating masses also mean greater
spontaneity in both acceleration and braking,
which in turn enhances driving dynamics
In an effort to improve forest diversity and
move away from pine forest monoculture,
several thousand oak trees were planted in
an area covering 4.6 hectares in Rutesheim,
Weissach and Ludwigsburg. The saplings are
replacing spruce and ash trees that have been
destroyed by storms or fungi. Deciduous for-
ests generate on average 800,000 litres more
groundwater per hectare than pine forest
monoculture, doing so every year and for
generations to come. This action is Porsche's
contribution to the national project of the
Hamburg-based Trinkwasserwald e.V. environ-
mental association. The 4.6-hectare drinking
water forest will produce 3.68 million litres
of clean groundwater annually. With every one
of us requiring some 1,000 litres of drinking
water each year, the new plantation will thus
quench the thirst of up to 3,680 people for
their entire lives.
73
a summer camp provided by the RB Leipzig
football academy.
LEIPZIG OPERA BALL
and major concerts. The company has been
the Global Partner of the Leipzig Gewandhaus
Orchestra since 2011.
In June, Porsche extended its agreement with
the Leipzig Gewandhaus, including support
for the much-loved Rosental Concerts as part
of the "Klassik airleben" series of concerts
for a further three years. To date, the sports-
car makers commitment to the venture
has enabled more than 60,000 people from
Leipzig to attend these first-class musical
events free of charge. Porsche's sponsorship
package also includes international tours
In July, Porsche and Stuttgart Ballet present
the open-air "Ballett im Park" event. Porsche's
support for these performances is now in its
sixth year, allowing thousands of ballet fans to
experience the cultural phenomenon at no
cost. Last September, Porsche extended its
agreement with Stuttgart Ballet to continue as
main sponsor for a further three years. The
extension of the successful cooperation be-
tween Porsche and this leading ballet company
comes right in time for the start of the 2017/
2018 season, which launches with a special
edition of its Behind the Scenes XXL series, in
celebration of John Cranko's 90th birthday,
at Stuttgart's Kammertheater. The sports-car
maker has been principal sponsor of the
Stuttgart Ballet since 2012. Furthermore,
Porsche has donated ten million euros to fund
the construction of the new building for the
John Cranko Schule for young dancers.
Culture
mous areas.
giving basic healthcare, early support and child
protection to pregnant mothers and infants up
to three years old. By the end of 2016, Porsche
China had donated approximately RMB 60
million (around 7.7 million euros) as part of its
cooperation with UNICEF. The funds are assist-
ing 915 project schools with around 310,000
pupils, 13,300 teachers and 4,000 infants
in seven provinces, communities and autono-
of the country. In addition, the Integrated Early
Childhood Development (IECD) project is
& ETL) is now improving the quality of educa-
tion at primary schools in the poorer parts
Effective Teaching and Learning (METRU Plus
In November, Porsche presented the Leipzig
Opera Ball for the fifth time, donating a
718 Cayman to be raffled for a good cause.
The guests bought a total of 8,000 tickets at
ten euros each. This year the proceeds from
the raffle were donated to the Leipzig hilft
Kindern children's charity, including the Haus
Leben e.V. project in Leipzig. This group
supports cancer patients and their families in
dealing with the emotional and practical
challenges of the disease and helps them to
help themselves, according to its motto
"Preventing, curing and managing cancer".
Since the devastating earthquake in the
Chinese province of Sichuan in 2008, Porsche
China has been funding a long-term education
project for children and young people. The
Empowering the Future programme was
launched in 2009 to provide education and
integrated early development opportunities
for disadvantaged children and young people
in rural areas. Porsche China is currently
working closely with UNICEF on three projects:
Mobile Education Training and Resource Units
(METRU) is a project that focuses on the
development of local quality standards for
teaching and education. METRU Plus &
INTEGRATION PROGRAMME
The Porsche Integration Year was repeated
in 2017, as the sports-car maker once
again prepared 15 young refugees for an
apprenticeship at partner companies and
in industries that are currently suffering
from an acute shortage of specialist workers.
Porsche is also supporting a range of other
initiatives that seek to give refugees long-term
prospects in the German labour market. It is
one of the main backers of the social enter-
prise Joblinge gAG Stuttgart, which helps to
find apprenticeships for young people facing
a difficult start. This programme supported
80 refugees in 2017. Meanwhile, it has been
full-speed ahead for the Berufliche Aner-
kennung in Baden-Württemberg (Vocational
Recognition in Baden-Württemberg) bursary
programme during the reporting year. The
Baden-Württemberg-Foundation project 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 is
supported by Porsche through the Stifter-
verband association of German companies and
foundations. By the end of 2017 some 500
people from across the federal state had been
given a bursary.
Education and science
tion and science, culture, social affairs, sports
and the environment.
Its support is focused on five key areas: educa-
its commitment to civic and social causes.
Porsche has supported more than 100 pro-
jects as part of its charitable donations and
CSR sponsorship activities during the report-
ing year. The firm funds such projects as part
of its corporate responsibility in keeping with
SOCIETY
22
Environment
During the reporting year Porsche funded
the expansion of the Porsche Training
and Recruitment Centre (PTRCA) in Manila.
For nine years, the sports-car maker has
worked with the Salesians of Don Bosco
religious order to train disadvantaged young
people in the Philippines as vehicle service
mechanics, opening the door to a potential
subsequent career in the Porsche retail organi-
sation. Volkswagen and Audi became partners
in the PTRCA in 2015, when the annual
number of young people involved was boosted
from 36 to 145. This expansion allows the
PTRCA to offer its participants the best prepa-
ration for the rapidly transforming challenges
involving the Aftersales department.
One of the main focuses of Porsche China's
social commitment is support for talented
young artists. The company launched its
cooperation with the Sichuan Institute for
Fine Arts as early as 2010. So far, seven
Porsche Art Competitions have been organ-
ised through the Empowering the Future
project, attracting more than 2,000 entries
from art students. In May 2017, Porsche
initiated the first ART021 Porsche Chinese
Artist of the Year competition, together with
the Shanghai Fair for Contemporary Art, as
an extension of the programme. The aim of
this project is to support the personal and
artistic development of China's most innova-
tive and pioneering young artists.
In addition, Porsche has contributed to the
Ausbildungscampus (education campus) initia-
tive set up by the Burgerstiftung Stuttgart
civic foundation. The foundation has worked
with public bodies and representatives of
employers to develop a model that introduces
young people in need of support, especially
young refugees, to work and training. The pro-
ject now provides them with all the informa-
tion they need, as well as support and advice,
in one convenient location. The assistance on
offer ranges from careers advice to help with
applications and arranging contacts, as well as
to guidance during training. At the same time,
the project acts as a platform for employers,
giving them information and advice.
STUTTGART BALLET
tion) and Sächsischer Behinderten- und
Rehabilitationssportverband (SBV - the
Saxony Association for Disability and Rehabili-
tation Sports). Porsche Leipzig also joined
forces with RB Leipzig as a partner in the
club's efforts to help young refugees, funding
their participation in an integration pro-
gramme. More than 30 refugee children
took part in the activity entitled Willkommen
Fussball (Welcome to Football), featuring
60
Aktion Mensch (a German charitable organisa-
Porsche in Leipzig has been working with the
RB Leipzig football club on an 'Inclusive Game
Day'. The club's Bundesliga match against
1. FC Ingolstadt centred around a campaign
for people suffering from disabilities, a cam-
paign coordinated by the Bundesliga Stiftung
(German professional football foundation),
Porsche is supporting the Württemberg
Football Association to enable people suffering
from mental health disorders to take part in
regular training sessions. This commitment to
inclusive sport was strengthened once again
in 2017 as Porsche trainees invited the asso-
ciation's team for people with mental disorders
to play a friendly match. As ever, the experi-
ence of taking part was more important than
the result.
Integration through sport
Weihnachtsmann & Co is a Stuttgart-based
initiative that has been supporting charitable
ventures and organisations in the city and
its surrounding area for over 40 years. One of
its most important sources of income is its
annual stand at the Stuttgart Christmas Market.
The world of books allows children to escape
and join their heroes such as the Little Prince,
and Snow White as they embark on their
adventures. The Hohensteinschule and Silcher-
schule schools in Zuffenhausen have set up
an informal reading club with bean-bags and
relaxed seating as well as a library of chil-
dren's books, thanks to cooperation with the
Stiftung Lesen foundation and a donation from
Porsche. The aim of the project is to give the
children a love of reading without the pressure
to achieve, thus improving their language and
reading skills. The opening ceremony was
attended by TV and movie actor Richy Müller,
as a guest reader.
psychological training for working with sick
children and help take the young patients'
minds off their health concerns.
STIFTUNG LESEN FOUNDATION
BEE COLONIES AT PORSCHE LEIPZIG
Staff taking part in the Porsche Year of Support
once again volunteered a day of their time to
help at the stall in 2017. In addition, Porsche
handed over a cheque to provide extra funds to
this operation, which is the only one of its kind
in Germany.
PORSCHE
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
Performance Employees, society, sport
DONATIONS BY 6-HOUR CHARITY RUN
61
Social affairs
believes creating an atmosphere in which the
children feel at home is vital to their care. As a
result, the charity has funded special ward
clowns for over 15 years. They have received
The reporting year saw the third staging of the
6-hour Charity Run. Three thousand Porsche
workers tackled the 911-metre route at the
Zuffenhausen plant. For each lap completed,
the company made a five-euro donation to
social projects in the Stuttgart region. In total,
185,000 euros were raised. The money
was donated to the Olgäle-Stiftung (Olgäle-
Foundation), Mobile Jugendarbeit Stuttgart
(a youth work umbrella organisation) and
Stuttgarter Jugendhaus gGmbH (a children's
charity organisation), Gustav-Werner-Schule
Zuffenhausen school, and to Kinder- und
Jugendhospiz Stuttgart (a hospice for children
and young people in Stuttgart). This final
recipient has benefited from the last three
stagings of the 6-hour Run and opened its
doors during the reporting year. It is the first
residential hospice for children and young
people in Baden-Württemberg. Up to eight
seriously ill children and young people can be
accommodated and supported, along with
their parents. The Olgäle-Stiftung aims to pro-
vide the best level of care for children attend-
ing the Olgahospital in Stuttgart. In addition
to the medical attention they receive, it
The reporting year saw the
third staging of the 6-hour
Charity Run. Three
thousand Porsche workers
tackled the 911-metre
route at the Zuffenhausen
plant. For each lap
completed, the company
made a five-euro donation
to social projects in the
Stuttgart region. In total,
185,000 euros were raised.
HUGS
Resource-efficient body building
A further example is provided by the over
400 robots used in body building. Up to now,
functionality and productivity had played an
essential role for the robots deployed in
production. In cooperation with the Fraunhofer
Institute, Porsche examined the robots' motion
sequences and routes: How quickly do they
accelerate? When do they brake? How long do
they apply the brake? When do they actually
switch to energy-saving mode? As a result,
the robots' processes were optimised to enable
them to perform sequences that also maxi-
mize energy savings. For example, the robots
now only accelerate as fast as is necessary.
This enables evaluation of each individual robot
and the entire process sequence that also
takes into consideration the energy aspect.
The bar has been raised again for resource-
efficient production in the planning and
construction of the body shop in Leipzig. This
includes numerous new, energy-efficient pro-
duction procedures and the intelligent control
of lighting.
Performance Sales, production, procurement
With this development, body building is raising
the bar for efficient internal processes. Previ-
ously, the energy efficiency as certified on the
device was decisive: now, it is important that
the device is optimally adjusted to the work
process. This optimisation produces energy
savings of approximately 12 per cent.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
In full sunshine, the
system generates
energy saving is an
important factor
a substantial proportion
of the electricity
requirement. This
86
NEW PANAMERA SPORT TURISMO
LEIPZIG BODY SHOP
In July, series production of the new Panamera Sport Turismo began in the Porsche factory in
Leipzig. Porsche has expanded the Leipzig site with a new body shop building for the Panamera
model family. As part of the 500-million-euro investment, an in-house quality and pilot centre
was also created to accompany the transition from prototype to series production. Porsche has
invested more than 1.3 billion euros in the Leipzig plant from the laying of its foundation stone
to the present day.
on the way towards
resource-efficient
production.
KUKA
"Green Logistics" for environmentally
sustainable logistics
The eJIT project was launched at the Leipzig
site in June. The pilot testing, which will take
three years, tests a truck with a purely electric
drive in logistics traffic. Porsche is the first
automobile manufacturer in Europe to deploy
a motorway-suitable, fully electric 40-tonne
vehicle. In Leipzig, more than 600 trucks arrive
at the plant every day - the eJIT is the first
truck with a purely electric drive to be used for
transport between the logistics centre and
the assembly supply centre. In a second devel-
opment stage, the vehicle is to be highly
automated from 2018.
Starting signal for the new Panamera Sport Turismo
of emissions. For this purpose, three CNG
to make a contribution to the avoidance
Given the increasing traffic load, particularly
in built-up areas, it is important to Porsche
In the last few years, Porsche has advanced
diverse projects to promote environmentally
sustainable logistics. Their implementation
was continued in 2017 in order to achieve
the targets set out in the new Green Logistics
strategy. Among other things, a method was
developed to enable comprehensive capturing
of Porsche CO₂ emissions in transport logistics
according to the greenhouse gas protocol
for the first time. The calculation method will
continue to be refined and checked for feasi-
bility in the next few years in order to achieve
more detailed evaluations.
CROSS-SITE SUSTAINABILITY PROJECTS
Pilot project for environmentally
friendly logistics
87
100% elektrisch und verett
Hier führt die Logistik der Zukun
Da
the eJIT research project. The partners have
been working together on truck electrification
since the beginning of 2016. The project
is part of the programme "IKT III [Information
and Communications Technology for Electro-
mobility III]: integration of electric commercial
vehicles into logistics, energy and mobility
infrastructures". With this programme, the
Federal Ministry for Economics and Energy is
continuing its research activities into the
commercial use of electromobility.
Alongside Porsche Leipzig as associated
partners, IAV GmbH, Schnellecke Logistics,
Volkswagen Saxony and the Network of
Automotive Suppliers are participating in
The e-truck is charged up at the supply centre
during the regular waiting time while being
loaded up. The battery is charged using a
150-kW quick charger. This enables it to be
used in three-shift operation. The range on
a full electrical charge is around 70 kilometres,
and the maximum speed is 85 kilometres
per hour. A second e-truck is currently being
tested by Volkswagen Saxony at the Zwickau
plant. In Zuffenhausen, the use of an e-truck
to supply production from the nearby distribu-
tion point is planned for 2018. This will enable
a considerable reduction of emissions in the
plant environment.
EJIT PILOT PROJECT
PHOTOVOLTAIC SYSTEMS AT LEIPZIG PLANT
Minister President praises Porsche production
During his visit to Zuffenhausen in July,
Minister President of Baden-Württemberg
Winfried Kretschmann learned about the
company's future direction with regard to
electromobility and the associated restructur-
ing of the Stuttgart-Zuffenhausen site. He
praised the new engine plant as a role model.
"The careful and far-sighted management
of urban areas exemplifies sustainability, and
the involvement of residents conveys transpar-
ency. All these are important steps towards
being a role model for climate-friendly mobility,"
said Kretschmann.
On 1 July, Gerd Rupp took over the chairman-
ship of the Executive Board of Porsche Leipzig
GmbH. Rupp succeeded Siegfried Bülow,
who had built up and developed the produc-
tion site over the course of 17 years as plant
director. Before moving to Leipzig, Rupp
had been director of tool construction for the
Volkswagen brand in Wolfsburg for seven
years, and had previously worked for Audi AG
in Ingolstadt and Barcelona. Siegfried Bülow
retired on 1 July. He will continue to be availa-
ble to the company as a consultant.
a biogas component, the generous relaxation
rooms with adjacent green spaces and
park-like areas for employees, and the quality
of the entire project management.
In addition, Porsche set considerably more
horticultural plants than is actually prescribed
for ecological compensation. The award also
acknowledged the future energy mix, including
In future, the electric drives of the Mission E
will also be produced at the new engine plant,
as well as V8 engines. A new building will
also be built for the central workshops in
Zuffenhausen, which will be located on the
premises of the former Mercedes transmission
plant. A particular advantage here was that
assessments of inherited liabilities and pollut-
ants had already been drawn up in advance of
the demolition work and that the renovation
recommendations were not only implemented
but also supervised by surveyors.
Porsche plant particularly sustainable
Porsche is setting standards in terms of
sustainability with the expansion and renova-
tion of its headquarters in Zuffenhausen.
Plant 4, with the new engine plant, central
workshops and additional office space, was
given platinum certification by the German
Society for Sustainable Construction (Deutsche
Gesellschaft für nachhaltiges Bauen, DGNB)
in October. This makes Porsche a pioneer
in this area. The award honours economic,
ecological, socio-cultural, functional and tech-
nological process quality in the restructuring
and conversion of industrial districts. At the
pre-certification in 2015, Plant 4 had already
been considered for gold certification, which
was the highest award category at that time.
gas trucks were deployed for daily transport
be used for this.
Efficient resource use
The first Baden-Württemberg industry week
In June, Porsche participated in the first
Baden-Württemberg industry week, organised
by the Ministry for Economics, Labour and
Housing. The company gave an insight into
sports-car production as well as into the train-
ing developments necessitated by operational
changes. Instructors learned how trainees
can be involved at an early stage in topics such
as digitalisation, electromobility and smart
mobility, and the learning methods that can
Performance - Sales, production, procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
2017
2016
2014 2015
2013
83
New photovoltaic systems at the Leipzig plant
Three photovoltaic systems are currently in
operation at the Porsche Leipzig GmbH site.
The system in the new body shop achieves
particularly high performance. The 15,240
modules produce 4.2 megawatts of electricity.
Another 0.6 megawatts are contributed by
the system in the body shop which produces
the Macan. The roof surfaces of the training
centre, which was opened in April, are also
equipped with photovoltaic modules. In full
sunshine, the system generates a substantial
proportion of the electricity requirement. The
energy saving provided by the photovoltaic
systems is therefore an important factor on the
way towards resource-efficient production.
In Zuffenhausen, Porsche participated in the
Federal State of Baden-Württemberg's project
100 Companies for Resource Efficiency in
2017. In the paint shop, the optimisation
The second project that Porsche submitted
was the energy optimisation provided by
use of drier exhaust heat in the wet chemical
waste air purification plant in the Zuffenhausen
paint shop. The optimisation enables the
necessary separating agent to be heated by
the waste heat flow from the paint drier in
the waste air purification plant. This achieves
electrical energy savings of 750,000 kilowatt
hours per year, which corresponds to an
emission of 319 tonnes of CO2.
plant in Leipzig
Gerd Rupp new head of Porsche
In June, the Porsche 911 won first place in
its segment for the sixth time in succession
in the Initial Quality Study by U.S. market
research institute J. D. Power. This makes it a
serial winner in the "Midsize Premium Sporty
Car" category since 2012. The Macan also
took first place again, for the third time in
succession. In the factory ratings for Europe/
Africa, Porsche took first place with the Leipzig
plant and was thus presented with the Gold
Award. Over 77,000 private citizens took part
in the survey, evaluating 243 models by
33 carmakers.
Gold for the Leipzig plant
85
The newly opened
training centre in
Leipzig represents a
far-sighted investment
in the next generation
of skilled employees.
Covering 2,300 square
metres, the new building
provides modern
workshops and seminar
rooms, innovative
training tools and thus
the ideal infrastructure
for vocational training.
of operation in the pre-treatment process for
vehicle bodies enable a saving of around
60,000 kilograms of chemicals (e.g. tensides,
cleaning agents, pH regulators) per year, in
addition to 5,500 cubic metres of fresh water.
The procedure is applied in order to remove
adhesions and lubricants from the bodywork
surface in preparation for the painting process.
TRAINING CENTRE IN LEIPZIG
Performance Sales, production, procurement
New training centre in Leipzig
Porsche's success story is predominantly at-
tributable to its highly qualified and motivated
team. In April, the company therefore set an
important milestone for excellent vocational
training: the newly opened training centre in
Leipzig represents a far-sighted investment in
the next generation of skilled employees.
Covering 2,300 square metres, the new build-
ing provides modern workshops and seminar
rooms, innovative training tools and thus
the ideal infrastructure for vocational training.
PORSCHE ENGINE PLANT
84
WINFRIED KRETSCHMANN VISIT
This commitment was honoured during Baden-
Württemberg's 6th Resource Efficiency and
Circular Economy Congress: in the presence
of Minister President Winfried Kretschmann,
Environment Minister Franz Untersteller pre-
sented two certificates to Head of Production
Albrecht Reimold. Furthermore, both measures
were included as examples of excellence in
the book "100 Companies for Resource Efficien-
cy", which is being published to accompany
the federal state project.
PRE-TREATMENT PROCESS IN PAINT SHOP
in 2017. This enabled up to 20 per cent of
previous CO2 emissions to be saved - around
119 tonnes of CO2 per year. The CNG gas
trucks emit 80 per cent fewer soot particles
and 90 per cent less carbon monoxide. They
are also quieter. The additional deployment
of LNG gas trucks is planned for the next few
years, because of their greater range and
promising technological development. The
prerequisite for this is a comprehensive
expansion of the LNG filling station network.
82
CO₂ neutrality in production
2018 TÜV Report: quality at Porsche
In the 2018 TÜV Report published in Novem-
ber 2017, the 911 models from Porsche once
again demonstrated their superior long-term
quality. Among the six- to seven-year-old
models as well as the eight- to nine-year-old
and ten- to eleven-year-old models, the 911
topped the list in each category. The 2018
TÜV Report was based on the results of the
main study. In the study period between July
2016 and June 2017, the results from nearly
nine million vehicles were evaluated.
Collaboration project in battery recycling
In Aftersales, Porsche is collaborating with the
Swedish company Box of Energy. The joint
project involves the recycling and further use
of lithium high-voltage batteries. A prototype
for a second-life energy storage unit is in
progress. The unit is comprised of two used
Panamera batteries installed in a stationary
energy storage unit with 18 kilowatt-hours of
capacity. Depending on market and customer
demands, specific solutions for the storage
of solar power generated in-house or cheap
purchased electricity for later use will be
developed. In conjunction with renewable
energy sources, the project makes an impor-
tant contribution since the need for temporary
storage of electricity is continuing to rise.
The use of used vehicle batteries as energy
storage units significantly reduces waste
and the consumption of raw materials.
Porsche Classic Center Son
PORSCHE
PORSCHE CLASSIC CENTRE IN NORWAY
To make day-to-day work in the Porsche
Centres more efficient and pleasant, all After-
sales systems were modernised in 2017. In
the future, roughly 30 systems will be united
in a single frontend.
Porsche Classic expands offerings
In addition to current vehicles, classic Porsche
models continue to enthuse fans worldwide.
Porsche Classic handles all vehicles whose
production period lies more than about ten
years in the past. This includes all aspects,
from technical literature to the provision
of 52,000 original parts and even complete
vehicle restoration. New additions to the
replacement parts assortment included the
brake drum for the Porsche 356 A and the
Porsche Classic Vehicle Tracking System,
which provides an additional anti-theft
protection measure for classic sports cars.
For the optimal maintenance of the vehicles
and to provide an expert point of contact for
classic Porsche enthusiasts, the international
dealer and service network was further ex-
panded in 2017. Locations were added in
Australia, Hong Kong and Norway. Customers
and potential buyers therefore now have a
total of 60 Porsche Classic partners world-
wide, including three Porsche Classic Centres.
The Porsche Classic Centres now bring to-
gether services, auto repair and sales of classic
sports cars under one roof for the first time.
Porsche has thereby integrated the care and
value preservation of modern classic and
older classic cars in a single service concept
that honours tradition and innovation in
equal measure.
80
Performance Sales, production, procurement
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
81
PRODUCTION
In the 2017 financial year, Porsche produced
a total of 255,683 vehicles. This constitutes
an increase of about seven per cent compared
with the previous year. All vehicles in the 911
(33,820 units), 718 Boxster (12,900 units) and
718 Cayman (5,081 units) model ranges came
off the production line at the Zuffenhausen
plant. Thus, Porsche produced a total of 51,801
cars at its headquarters in Zuffenhausen. A total
of 156,439 vehicles were manufactured at
the Leipzig plant, amounting to around 61 per
cent of Porsche's total production. 98,763 units
in the Macan model range came from Leipzig,
plus 20,071 Cayennes and 37,605 Panameras.
5,286 units of the third-generation Cayenne
were produced in Bratislava (Slovakia). Porsche
produced 33,711 Cayennes at the Volkswagen
Group's multi-brand site in Osnabrück and
8,446 units of the 718 Cayman.
New additions to the
replacement parts
assortment included the
brake drum for the
Porsche 356 A and the
Porsche Classic Vehicle
Tracking System, which
provides an additional
anti-theft protection
measure for classic
sports cars. For the
optimal maintenance
of the vehicles and to
provide an expert
point of contact for
classic Porsche
enthusiasts, the inter-
national dealer and
service network
was further expanded
in 2017.
Production in Zuffenhausen
The Aftersales department also worked on
Service Packages offering customers all-
inclusive comprehensive services. All costs for
maintenance or replacement of high-wear
components, for example, would be covered
by a single price. This would then ensure
optimal care for the vehicle.
the requisite infrastructure and processes are
in development. At the same time, the Sales
department and the Volkswagen Group were
hard at work on "intelligent home charging".
With automatic consideration of the electricity
price and the current electricity needs of
all consumers in the household, the system
enables rate-optimised charging.
New corporate identity
New design for the Porsche brand presenta-
tion: Porsche changed its corporate identity
for the first time in roughly 20 years. The
in-house font, colours and image presentation
that the sports-car maker now uses in its
communications, such as publications, cata-
logues, ads, signs, online media and even the
displays in its vehicles, have been fundamen-
tally reworked. The result is a significantly
modernized and even more emotional pres-
entation. Porsche had been resolutely applying
its previous corporate identity since 1996
and with it had given the brand an unmistakable
appearance. With the growing importance of
digital channels, the new design effort placed
great importance on establishing a brand
presentation that would work online as well,
and unmistakably stand for Porsche. In the
future, the colour scheme will focus in the
colour white, accompanied by four grey tones,
black and a new, brilliant Porsche red. The
colour Acid Green was retained as the com-
munications colour for the E-Performance
area. The Porsche Next in-house font was
also redesigned.
The Aftersales depart-
ment also focussed on
the market launch of
the new Cayenne in the
reporting year as well
as securing the world-
wide replacement
parts supply for the third
SUV generation. In
addition to the definition
and provisioning of
replacement parts, new
digital, interactive
Driver's Manuals and
an app for customers
were developed.
Porsche and Microsoft
The Porsche vehicles of the future will, more-
over, be "always online". In 2017, the Aftersales
department worked on various over-the-air
(OTA) functions. In the future, these capabili-
ties will enable one-click purchasing of new
vehicle functions in the Porsche navigation
system. Analyses and troubleshooting will also
be possible without the customer having to
visit a Porsche Centre.
Virtual driving pleasure for real: Porsche and
Microsoft plan to collaborate more closely in
the future. At the 2017 New York International
Auto Show, the two companies agreed to
a six-year partnership in the field of racing
games and electronic gaming competitions.
In the future, sports cars from Porsche will
have a greater presence in the racing game
series Forza Motorsport and Forza Horizon.
One central element of the partnership is the
growth field of eSports - i.e. competitions
in which players compete in virtual gaming
contests. The kick-off for the engagement was
the Forza Racing Championship (ForzaRC), the
leading eSport racing series with the largest
online racing community worldwide. Based on
the current Xbox racing game Forza Motor-
sport 6, in which Porsche has been involved
with over 20 cars since 2016, the ForzaRC
2017 season provided a motor racing champi-
onship for all Porsche fans.
The Aftersales department also focussed on
the market launch of the new Cayenne in
the reporting year as well as securing the
worldwide replacement parts supply for the
third SUV generation. In addition to the defini-
tion and provisioning of replacement parts,
new digital, interactive Driver's Manuals and an
app for customers were developed. Aftersales
also achieved a very strong insurance rating
for the Cayenne. New repair concepts contin-
ued to be developed. For example, a procedure
that enabled particularly rapid testing for
wear on the new PSCB brake utilising a paint-
thickness measuring device was introduced.
This enabled more cost-effective and simulta-
neously higher-quality service both for the
customer and the Porsche Centre.
To ensure that vehicles could be rapidly and
competently serviced or repaired, a compre-
hensive training programme for the employees
of Porsche Centres was initiated worldwide.
The focus of the training programme was new
technologies and systems used in the Cayenne.
The qualification of the dealer organisation
as well as the further development of the
course and training methods were core themes
in the effort to prepare dealers optimally for
coming vehicle generations.
The advancing electrification of the vehicle
models also took on a central role in the after-
sales context. In particular, this included the
development of a powerful charging infra-
structure at the Porsche locations that would
allow the recharging of vehicle batteries at
currently unimaginable speed - independent
of the capacity of the available connection
lines. In the reporting year, a clear course was
charted for these new technologies, and
Aftersales: professional service
Green Logistics also means that, in future,
new Porsche vehicles are to be transported
by rail using green electricity to the seaports
for shipping. The conversion to green elec-
tricity was prepared and coordinated with the
transport service providers in 2017. As a re-
sult, approx. 6,194 tonnes of CO₂ will be saved
per year in future. This corresponds to around
three per cent of total emissions by Porsche
AG in the area of transport in 2016.
On May 11, the millionth Porsche 911 came
off the production line in Zuffenhausen: a
Carrera S in the individual colour Irish green,
reminiscent of the first original 911s from
1963. The 911 remains the most strategically
important model in the product range, and
contributes significantly to Porsche's position
as one of the most profitable carmakers in
the world. A significant element of Porsche's
success is the production site at its head-
quarters in Zuffenhausen. All the 911 models
are built here. An ingenious production princi-
Approval for restructuring in Zuffenhausen
Porsche aims to achieve a continual reduction
in the consumption of fresh water. On the
testing track at Leipzig, rain and well water
will be used in future on the "dynamic surface"
to test vehicle behaviour on wet roads.
This will enable an average annual saving of
2,092 cubic metres of fresh water.
on average, by reducing the fresh air compo-
nent in the recirculated air sections of the
paint shop. This corresponds to an annual
CO₂ emissions total of around 427 tonnes -
which would enable 84 Porsche 911 Carreras
to travel 30,000 kilometres CO2-neutrally
each year.
in 2017, simply by optimising the application
technique to the vehicle body. In Leipzig,
electricity consumption is to be reduced by
more than 740,000 kilowatt hours per year
The paint shop is also saving considerable
resources. In Zuffenhausen, paint material
amounting to almost 67,000 euros was saved
The body building experts achieved considera-
ble energy savings by optimising the extrac-
tion of the smoke generated during welding.
This enables Porsche to save almost 400,000
kilowatt hours of electricity per year. For com-
parison, this resource saving would enable
45 Porsche 911 Carreras to clock up around
30,000 CO2-neutral kilometres per year. As
well as the ecological advantage, optimised
plant management also achieves added value
in the improved working conditions for
employees on site.
on the heat testing bench enabled a saving of
almost 38,000 litres of fuel per year - without
sacrificing any of the engine testing quality.
As well as the approx. 101 tonnes of CO2
saved annually, this also has a positive effect
beyond direct operation: the reduction in
consumed fuel contributes to a reduction in
the logistics outlay in general.
LEIPZIG TESTING TRACK
At the Zuffenhausen site, shortening the dura-
tion of GT3 engine testing by 15 minutes
also practised every day. In 2017, a wide range
At Porsche, careful handling of the environ-
ment and resources is not only regulated in
numerous principles and guidelines, it is
Porsche saves resources in diverse ways
be optimised by fermentation of organic waste.
at the Zuffenhausen site. In cooperation with
a local municipal facility, the energy mix will
Porsche is aiming at CO2-neutral production of
its vehicles in future. A first step will be the
production of the first purely electric vehicle -
this is to be manufactured CO2-neutrally at the
Zuffenhausen site from the end of the decade.
To this end, Porsche AG and its subsidiaries
Porsche Leipzig GmbH and Porsche Logistik
GmbH switched to 100 per cent green elec-
tricity at the start of 2017, thus providing
all the production sites in Germany with an
ecologically viable energy supply. This will be
supplemented by the future use of biogas
of measures contributed to enabling Porsche
to achieve its long-term goal of saving a million
euros per year through the optimised and
careful use of resources in production.
ple now enables the assembly of all the
sports cars on one production line - the 911,
718 Boxster and 718 Cayman, including
their numerous derivatives.
88
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
A milestone on the road towards production
of the first purely electric sports car was
achieved in 2017 when, following a seven-
month application review, immission control
approval was issued for the restructuring of
the traditional site in Stuttgart-Zuffenhausen,
with no reservations. The documents submit-
ted comprised 365 files weighing around
one tonne in total. The complex procedure in-
cluded public involvement and determined all
the environmental effects of the construction
project: for example, the effects on humans,
flora and fauna as well as on the landscape and
on cultural assets. Over 15 environmental as-
sessments were drawn up for air, noise, water
protection and environmental protection. The
authorities approved the plant extension, which
will result in a capacity of 100,000 vehicles
per year. The saddlery, the new engine plant
and the vehicle assembly department can also
be expanded. Porsche maintained on-going,
proactive dialogue with its neighbours during
the process.
In the 2017 financial
year, Porsche produced
a total of 255,683
vehicles. This consti-
tutes an increase of
about seven per cent
compared with the
previous year. Porsche
produced a total of
51,801 cars at its
headquarters in
Zuffenhausen. 156,439
vehicles were manufac-
tured in Leipzig.
250
200
150
100
ZUFFENHAUSEN PAINT SHOP
Production volume
THE ONE-MILLIONTH 911
50
165,808
203,097
239,618
234,497
Vehicles produced
21,533
255,683
- 1,057
Sustainability workshops with suppliers
Sustainability aspects within the supply chain
are already important today, and will inevitably
become more and more significant as time
goes on. Porsche is among those companies
that take sustainability projects and the im-
plementation thereof into account. In order to
intensify our exchange of sustainability-rela-
ted ideas with suppliers, Porsche developed
a concept for supplier workshops during the
reporting year, organising two events. Within
the workshops, shared approaches to imple-
menting sustainability aspects are identified
and possible topics are defined for future
cooperation. Supplier audits are already being
carried out to ensure that sustainability
requirements are observed, which lays the
foundation for future cooperation. In doing
this, Porsche is implementing an additional
measure as part of the Procurement Strategy
2025. The observance of sustainability
requirements will continue to be a focus of
Porsche Procurement.
Procurement of production materials and
non-production materials
As in previous years, material costs per vehicle
were further optimised in the 2017 financial
year. Close cooperation and early inclusion
of economic partners in various cost and pro-
duction workshops led to significant savings.
In 2017, Porsche AG's material costs were
4,985 million euros (2016 financial year:
4,129 million euros).
Even in services and non-production materi-
als, Procurement made a significant contri-
bution within the reporting period to achieving
the company's aims. Due to another large
number of infrastructure projects, investments
in the 2017 financial year amounted to
1,684 million euros. This development reflects
Porsche's continued growth (2016 financial
year: 1,695 million euros).
90
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance Sales, production, procurement
Porsche operates in an environment that is
shaped by rapid change. The progress of
globalisation, demanding customers, increa-
sed competition for time and knowledge as
well as contrasting ways of thinking and
working in the IT and automobile sectors are
just some of the challenges that the company
needs to face. In order to recognise trends
and developments early, Porsche takes its cue
from the supplier sector. As part of the Porsche
Supplier Innovation Days, the aim is to tie sup-
pliers' new concepts to the company at an
early stage. That is why, for example, Innovation
Management for Procurement and Develop-
ment organises a Porsche Supplier Innovation
Day dedicated to the topic of Alternative
Materials and Lightweight Construction. At
this event, selected suppliers present their
innovative manufacturing concepts to Porsche
experts from various specialist departments.
For the Innovation Day on the topic of 'Well-
being in a Porsche Vehicle', the Porsche
departments Procurement, Development and
Distribution contact selected suppliers and
start-ups in advance and ask them to submit
their developments as part of the open innova-
tion approach. The more than 200 innovation
ideas suggested are evaluated by interdiscipli-
nary Porsche teams. 60 well-being innovations
make it into the final selection and are then
presented to Porsche experts in Weissach
by suppliers and start-ups from all over the
world. At the Porsche Supplier Tech Day,
the sports-car maker is a guest at the world's
second-largest automobile supplier, ZF Fried-
richshafen AG. The Innovation Management
team in the Procurement department and the
Advance Chassis Development team organise
presentations, specialist lectures and an
exchange of ideas. The topic here is: What
are the latest innovations from Porsche
suppliers? How does Porsche put them into
practice? The promising series of Porsche
Supplier Innovation Days will continue to be
expanded in the future.
91
Net assets
Financial position
Results of operations
31 Dec. 2017
% 31 Dec. 2016
%
Property, plant and equipment
Equity-accounted investments
Financial analysis
Innovation Management
to guarantee a reliable
supply of high-quality
components.
again increased its
deliveries - to more
than 246,000 vehicles.
Procurement had its
own contribution to
make to the success
and, thanks to a close
cooperative partner-
ship with the supplier
industry, was able
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 128-129.
89
PROCUREMENT
In reporting year 2017, Porsche AG once
again increased its deliveries - to more than
246,000 vehicles. Procurement had its own
contribution to make to the success and,
thanks to a close cooperative partnership with
the supplier industry, was able to guarantee
a reliable supply of high-quality components.
The focus in 2017 was on products of key
strategic importance and topics for optimising
Porsche's value chain. That is why Procurement
continued to intensify its supplier networking
throughout the reporting year. Cooperation
based on partnership will continue to grow
across company boundaries in the future, and
there will also be more strategic partnerships.
Classic commissioning of suppliers will no lon-
ger be the only form of cooperation. Porsche
AG has already taken action to ensure that it
can develop new technologies and products in
future using smart cooperation models, and
to ensure that they are future-ready.
At the same time, there are some tangible
examples of digitalisation in practice and in
day-to-day working life: Procurement has
come up with a range of ideas for new apps,
and has integrated new ideas into already
functioning apps.
Model start-ups
For Procurement, the focus of the reporting
year was on the production start-ups for the
new Cayenne, the Panamera Sport Turismo
and the 911 GT2 RS - the fastest and most
powerful road 911. For all models, Procure-
ment purchases a wide range of new parts
and guides the vehicles - in tandem with the
suppliers - to series maturity.
The Cayenne, as a model for success, is now
in its third generation and is being completely
redeveloped, tangibly and visibly improved
and perfected. The Cayenne is also compre-
hensively digitalised and networked. Within
the Panamera family, the new chassis version
known as the Panamera Sport Turismo
celebrated its premiere in the reporting year.
With its large tailgate, low loading sill, enlar-
ged boot volume and 4+1 seat concept,
the new four-door vehicle fulfils high standards
of both day-to-day usability and variability.
Motor racing
The outstanding motor racing season was
another highlight of 2017. At the 24 Hours
of Le Mans, the 919 Hybrid took Porsche's
19th overall victory and, as early as November
in Shanghai, the sports-car maker took its
third World Championship title in the manu-
facturers' ranking since 2015. The racing
teams were able to rely on Procurement:
shoulder to shoulder with all specialist units
involved, Procurement was able to get
the right partners on board to make these
victories possible.
Strategy 2025
Porsche Strategy 2025 and global trends in
procurement markets have given rise to
various strategic aims for Procurement. Firstly,
top quality at competitive terms and condi-
tions thanks to active design of technical and
ecological innovations. Secondly, efficiency
across the products' entire service life. Thirdly,
reliability due to constant availability, consis-
tent high quality of purchased parts and stable,
efficient goods flows. Fourthly, an increase
in attractiveness as an employer of talented
people and high employee satisfaction by
creating optimum working conditions.
During the reporting year, Procurement imple-
mented a range of projects as part of the
strategic initiative. The exchange of ideas with
suppliers will continue to intensify and the
issue of sustainability within the supply chain
will move more into focus. Furthermore,
Procurement will expand its marketing in order
to get students, graduates and professionals
interested in the complex topics surrounding
procurement.
During the reporting year, Procurement
cooperated with third-level education insti-
tutions such as the University of Mannheim.
This gives Porsche employees new insights
while also offering students a look at how
the company works by means of excursions,
lectures and practical work placements.
In reporting year 2017,
Porsche AG once
4,646
5,903
341
13
Other equity investments
59
0
153
1
31
0
370
1
879
3
25,247
72
23,592
73
3,051
593
678
1,841
26
Performance Sales, production, procurement
8,478
1,363
Leased assets
3,455
Financial services receivables
1,417
Other financial assets
8,903
25
6710045
3,965
5,116
12
16
333
1
54
0
3,373
11
4
429
28
2014 2015
-4
6
1,206
5
-1,140
-5
3,877
-867
17
0
3,697
17
5
100
-5
Profit after tax
-180
-8
- 1,703
29
- 1,883
-8
-1,041
1,366
-4
-917
-4
4,144
18
Profit before tax
77
4,221
18
Income tax income/expense
- 1,082
8844808 | LO
22,318
-15,937
6,381
100
-71
3,139
13
2,640
12
€ million
Sales revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
Financial result
98
99
Performance - Financial analysis
23,491
-16,872
6,619
%
FY 2016
%
FY 2017
97
SCAN
THIS CHART
Performance - Financial analysis
2016 2017
of the Porsche AG Group
2013
Results of operations
Other operating income rose from € 1,206 mil-
lion to €1,366 million. The increase is mainly
attributable to a rise in income from the reversal
of provisions and accruals as well as higher
income relating to forward exchange transac-
tions. Other operating expenses declined
RESULTS OF OPERATIONS
The Porsche AG Group's profit after tax in-
creased by €499 million from €2,640 million
in the corresponding prior-year period to
€3,139 million in the current fiscal year. The
tax rate in the reporting period was 26 per cent
(prior year: 29 per cent).
Consolidated revenue at the Porsche AG Group
amounted to €23,491 million in the reporting
period (prior year: €22,318 million). The
Porsche AG Group sold 238,691 new vehicles
in the past fiscal year. This corresponds to
an increase in unit sales of 3 per cent compared
with the prior year. The primary contribution
to the growth in sales volume and revenue
was made by the Panamera model line, which
recorded an increase of 18,334 to 30,998
new vehicles. The Macan model line main-
tained its lead in terms of sales volume,
with 95,540 new vehicles sold. In regional
terms, China remained the largest market,
with new vehicle sales totalling 70,594
units. The European market (excluding Germany)
recorded particularly healthy growth, with
52,237 new vehicles sold. This corresponds
to 7 per cent growth in unit sales.
The cost of sales increased in line with
revenue to € 16,872 million (prior year:
€15,937 million), which represents 72 per cent
of revenue (prior year: 71 per cent). In
absolute terms, the cost of sales rose by
€935 million or 6 per cent. This slightly dis-
proportionate increase is due to the growth
in warranty expenses and higher research
and development costs recognized in the in-
come statement. The capitalisation ratio
for research and development costs amounted
to 58 per cent (prior year: 56 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 €1,703 million
to €1,883 million due to the higher volume
of sales. Administrative expenses increased
from €867 million to €1,041 million. In rela-
tion to sales revenue, distribution expenses
remained level at 8 per cent (prior year:
8 per cent), as did administrative expenses
at 4 per cent (prior year: 4 per cent).
The personnel expenses across all functions
of the Porsche AG Group increased from
€2,875 million to €3,200 million. The growth
in personnel expenses corresponds to the
rise in the average number of employees in
2017 by 2,782 to 29,033.
Depreciation, amortisation and impairment
across the functions increased to €2,276 million
compared with €2,081 million in the prior
year. This primarily relates to the depreciation,
amortisation and impairment of capitalised
development costs and leased assets.
from €1,140 million to €917 million. The de-
crease mainly results from lower expenses in
connection with forward exchange transactions.
51
-72
9
FINANCIAL POSITION
95
Performance - Financial analysis
056803228
100
32,235
100
Cash flows from operating activities amounted
to €4,069 million in the 2017 reporting period
following €3,864 million in the prior year. The
material effects resulted from increased profit
and higher depreciation, amortisation and
write-downs on the one hand, and non-cash
income and expenses and higher outflows
for inventories on the other.
35,019
10,809
31
10,735
Provisions for pensions and similar obligations
783
557
2
10
34
The cash flows from investing activities resulted
in a cash outflow of €3,140 million in the
reporting period following €2,724 million in the
prior year. Investments in intangible assets
(excluding capitalised development costs)
and property, plant and equipment increased
from €1,438 million in the prior year to
€1,762 million in the period under review.
Additions to capitalised development costs
amounted to € 1,337 million following
€1,228 million in fiscal year 2016.
There was a change in cash flows from financ-
ing activities from €-786 million in the prior
year to €-744 million in the current fiscal year.
Payments made in respect of profit transfer
and dividends resulted in a cash outflow of
€2,371 million (prior year: € 1,904 million).
This was partly offset by capital contributions
amounting to €1,312 million (prior year:
€1,076 million) made by Porsche Holding
Stuttgart GmbH.
5
10
15
14,326
20
20
25
€ million
Sales revenue
96
prior year.
€23,491 million, following
€22,318 million in the
for the current reporting
period amounted to
the Porsche AG Group
Consolidated revenue at
€1,965 million as of 31 December 2016 to
€2,231 million as of 31 December 2017.
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
3,337
2,589
1,830
1,636
0
119
3,669
11
3,687
864
2
614
Deferred tax liabilities
Financial liabilities
685
2
799
Other provisions
3,213
10
3,466
022570
399
17,205
1
9,084
77
055973
850
Other liabilities
2,599
Other financial liabilities
3,048
Trade payables
1,770
Financial liabilities
1,841
82
29
11
02312-2
9,446
26
699
316
23,491
545
37
8,643
35,019
100
32,235
100
28
27
NET ASSETS
As of 31 December 2017, the total assets of
the Porsche AG Group stood at €35,019 mil-
lion, 9 per cent higher than on the prior-year
reporting date.
Non-current assets increased by €1,655 million
to €25,247 million. The increase primarily
relates to fixed assets and other financial assets,
while there was a decline in deferred taxes.
Non-current assets expressed as a percentage
of total assets amounted to 72 per cent (prior
year: 73 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
equipment, leased assets, equity-accounted
investments and other financial assets -
amounted to € 14,404 million, compared with
€12,841 million in the previous fiscal year.
Fixed assets expressed as a percentage of
total assets increased to 41 per cent (prior
year: 40 per cent). Intangible assets increased
from €3,965 million to €4,646 million. The
increase mainly relates to capitalised develop-
ment costs. The largest additions concerned
the Cayenne, 911, and Mission E model line.
Property, plant and equipment increased in
comparison with the prior year by €787 million
to €5,903 million, primarily due to additions
to land and buildings, 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 in-
creased by €82 million in comparison with
the prior year, to €3,455 million. This item con-
tains vehicles leased to customers under
operating leases.
Non-current other financial assets increased
by €425 million to €8,903 million. The in-
crease was due to the marking-to-market of
derivative financial instruments.
Deferred income tax assets amounted to €370
million as against €879 million in the prior year.
As a percentage of total assets, current assets
amounted to 28 per cent compared with 27 per
cent in the prior year. Inventories increased
from €2,536 million in the prior year to €3,051
million at the end of the reporting period.
Non-current and current receivables from
financial services rose from €2,010 million to
€2,095 million. This item mainly comprises
receivables from finance leases and receiva-
bles from customer and dealer financing.
Current other financial assets increased by
€504 million to €1,841 million. The increase
is attributable in almost equal measure to
the clearing account with Porsche Holding
Stuttgart GmbH and the marking-to-market
of derivative financial instruments.
28
Cash, cash equivalents and time deposits in-
creased by € 178 million to €3,067 million.
9,772
9
2,536
591
647
22,318
1
390
82247
194
1
Securities
62
0
59
0
Cash, cash equivalents and time deposits
3,067
9
2,889
Current assets
The equity of the Porsche AG Group increased
by €3,220 million to € 15,200 million com-
pared with the prior-year reporting date. Equi-
ty was lifted by the profit after tax, profit
transfer and dividends (€982 million), as well
as revaluations from pension plans after tax
(€ 50 million), the change in the cash flow
hedge reserve after tax (€ 1,109 million), and
1,337
By contrast, currency translation effects of
€235 million were recognized as a decrease
in equity.
Trade receivables
Financial services receivables
Other financial assets
Other receivables
0
Tax receivables
Other financial liabilities
Inventories
Other liabilities
Non-current liabilities
Other provisions
Tax payables
Current liabilities
94
Equity and liabilities
Equity
15,200
a capital contribution by Porsche Holding
Stuttgart GmbH (€ 1,312 million).
Provisions for taxes
Other receivables
Deferred tax assets
Non-current assets
43
Assets
Non-current liabilities relate to financial liabili-
ties, pension provisions, deferred income tax
liabilities, other financial liabilities, other liabili-
ties, and other provisions. They declined by
€362 million to €9,084 million in comparison
with the prior year. Non-current liabilities ex-
pressed as a percentage of total capital
decreased from 29 per cent in the prior year to
Intangible assets
26 per cent at the end of the fiscal year.
Provisions for pensions and similar obligations
increased by €253 million, mainly due to a rise
in the number of eligible employees.
Non-current other financial liabilities decreased
by € 580 million. This decline relates mainly
to the marking-to-market of derivative financial
instruments.
11,980
Current liabilities declined from € 10,809 million
to € 10,735 million. Current liabilities expressed
as a percentage of total capital decreased
from 34 per cent in the prior year to 31 per cent
as of 31 December 2017.
Trade payables increased to €3,048 million
after €2,589 million in the prior year. This
increase is attributable to higher volumes of
investments and business.
Current other financial liabilities amounted to
€2,599 million (prior year: €3,337 million).
This was primarily due to the change resulting
from the marking-to-market of derivative
financial instruments (€469 million) and a re-
duction in the profit transfer liability to Porsche
Holding Stuttgart GmbH (€213 million).
Net assets
Deferred income tax liabilities amounted to
€614 million compared with € 864 million in
the prior year.
€ million
of the Porsche AG Group
1,585
1,585
1,581
72
72
72
11,980
-235
-235
11,979
242
305
-1,012
4,076
8,933
-235
22
50
-495
1,312
45
4,066
4,066
-235
1,109
50
-472
3,139
3,139
3,139
927
-235
1,109
3
-495
3,139
927
0
1
-435
2,640
2,640
0
2,640
2,640
-65
0
-65
32
338
0
-435
40
40
1,312
0
11,980
338
2,575
11,979
242
-305
0
-1,012
4,076
8,933
32
45
-1
-2,370
-2,370
1,076
1,076
1,076
2,575
-2,371
1,312
2015
-2,157
Vehicles
25,114
23,620
225,121
31,350
566
22,663
Macan
Vehicles
97,202
718 Boxster/Cayman
95,642
Cayenne
Vehicles
63,913
70,867
73,119
Panamera
Vehicles
80,216
27,942
44
Vehicles
Key figures for environment and energy
Key figures for personnel and social matters
Key economic figures
The key figures concerning deliveries and production relate to the Porsche Group
(including subsidiaries).
The key figures concerning suppliers relate to Porsche AG.
Deliveries
2017
7
2016
Total
Vehicles
911
Vehicles
246,375
32,197
237,778
32,365
918 Spyder
2015
Key economic figures
15,240
Production
2017
99%
98%
98%
Expenditure for local suppliers at main business sites ¹)
Proportion of allocated purchasing budget spent on local suppliers
2015
2016
2016
2017
4.9%
Based outside the EU
4.2%
1) Based on the creditor's billing address.
Based in the EU
95.1%
Suppliers of non-production materials
Based outside the EU
17,207
2015
Total
Suppliers of production materials
26,427
Vehicles
718 Boxster/Cayman
2015
2016
2017
¹) Suppliers are considered to be local if they are based in the EU.
Zuffenhausen and Leipzig are considered the main business sites.
234,497
31,373
375
918 Spyder
239,618
31,648
33,820
Vehicles
911
255,683
Vehicles
Vehicles
Key figures
115
Performance - Financial data
23,491
1,522
22,318
1,231
21,533
1,380
- 13,665
-12,623
-12,095
2015
-2,276
-2,124
- 1,361
-2,089
-2,458
7,711
6,756
6,236
-2,081
Appropriation of funds in € million
2016
Depreciation and amortisation
Other upfront expenditures
Value added
-2,158
45
10,245
5,058
-962
804
15,200
2017
15,200
113
114
Value added statement
of the Porsche AG Group from 1 January to 31 December 2017
Source of funds in € million
Sales revenue
Other income
Cost of materials
Performance - Financial data
2017
2016
to shareholders (profit transfer)
2.0%
142
2.3%
to the Company (reserves)
Valued added
980
7,711
12.7%
135
270
430
6.9%
100%
6,756
100%
6,236
100%
4.0%
1.0%
76
to creditors (interest expense)
2,157
28.0%
2,370 35.1%
1,905
30.5%
to employees (wages, salaries, benefits)
3,200 41.5%
2,875 42.5%
2,605
41.8%
to the state (taxes, duties)
1,298
16.8%
1,106
16.4%
1,154
18.5%
-2,157
Supplier origin 20171)
an increase of €267 million in comparison
with the prior year.
-144
4
0
4
Deferred taxes relating to available-for-sale financial assets
Available-for-sale financial assets, net of tax
-1
3
Share of other comprehensive income of equity-accounted investments that
may be reclassified subsequently to profit or loss, net of tax
0
Items that may be reclassified subsequently to profit or loss
Other comprehensive income, before tax
Deferred taxes relating to other comprehensive income
Other comprehensive income, net of tax
877
0
370
1,422
-105
-495
40
927
-65
Total comprehensive income
4,066
2,575
thereof profit attributable to shareholders
4,066
2,575
thereof profit attributable to non-controlling interests
0
-144
338
Performance - Financial data
1,109
482
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
-235
32
0
Exchange differences on translating foreign operations, before tax
-235
32
Deferred taxes relating to exchange differences on translating foreign operations
Exchange differences on translating foreign operations, net of tax
-235
32
Cash flow hedges
Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Cash flow hedges, before tax
Deferred taxes relating to cash flow hedges
Cash flow hedges, net of tax
Available-for-sale financial assets
Fair value changes recognized in other comprehensive income
Transferred to profit or loss
Available-for-sale financial assets, before tax
1,733
119
- 152
363
1,581
-472
0
-435
107
Consolidated statement of financial position
153
31
370
879
25,247
23,592
3,051
2,536
593
591
678
647
Other financial assets
1,841
1,337
Other receivables
429
390
Tax receivables
51
194
Securities
62
59
Cash, cash equivalents and time deposits
3,067
2,889
Financial services receivables
108
Trade receivables
Non-current assets
of Porsche AG as of 31 December 2017
€ million
31 Dec. 2017
31 Dec. 2016
Assets
Intangible assets
Property, plant and equipment
Leased assets
Equity-accounted investments
Other equity investments
4,646
3,965
5,903
5,116
3,455
3,373
341
333
59
54
Financial services receivables
Other financial assets
1,417
1,363
8,903
8,478
Other receivables
Deferred tax assets
Inventories
Current assets
50
Share of other comprehensive income of equity-accounted investments that will not
be reclassified to profit or loss, net of tax
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Value added statement
104
Consolidated income statement
of Porsche AG for the period 1 January to 31 December 2017
€ million
Sales revenue
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
FY 2017
FY 2016
23,491
-16,872
6,619
22,318
- 15,937
6,381
-1,883
- 1,703
- 1,041
-867
1,366
1,206
Consolidated statement of comprehensive income
-917
Consolidated income statement
101
The financial result amounted to €77 million
(prior year: €-180 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 interest
rate hedging transactions that are not included
in hedge accounting. On the other hand, there
was a decline in interest expenses.
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 17.6 per cent in the past
financial year (prior year: 17.4 per cent). The
pre-tax return on sales amounted to 18.0 per
cent (prior year: 16.6 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 28.2 per cent (prior year: 30.7 per cent).
The return on equity after tax was 23.1 per
cent (prior year: 23.3 per cent).
Operating profit
amounted to €4,144
million, an increase
of €267 million in
comparison with the
prior year.
5
4
Operating profit (EBIT)
€ million
3
2,719
2,579
2
1
4,144
3,877
3,404
0
2013
2014
2015 2016
2017
100
Performance - Financial analysis
Financial data
0
-1,140
3,877
2,640
3,139
0
0
Profit transferred to Porsche Holding Stuttgart GmbH
-2,157
- 2,370
1) The structure within the financial result has been changed. The presentation of finance costs has been replaced with
interest income and interest expenses. Prior-year figures have been adjusted accordingly.
Performance - Financial data
105
106
Consolidated statement of comprehensive income
of Porsche AG for the period 1 January to 31 December 2017
€ million
Profit after tax
Pension plan remeasurements recognized in other comprehensive income
FY 2017
FY 2016
3,139
2,640
Pension plan remeasurements recognized in other comprehensive income, before tax
Deferred taxes relating to pension plan remeasurements recognized in other comprehensive income
72
-22
-619
184
Pension plan remeasurements recognized in other comprehensive income, net of tax
50
-435
3,139
4,144
17
- 1,074
Share of profit or loss of equity-accounted investments
Interest income ¹)
4
8
395
395
Interest expenses ¹)
Other financial result 1)
-68
-144
-254
-439
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
77
-180
4,221
3,697
- 1,082
- 1,057
1,234
152
Operating profit amounted to €4,144 million,
9,772
35,019
-5
Net change in cash and cash equivalents
185
354
Cash and cash equivalents at end of period
2,960
2,834
Cash and cash equivalents at end of period
2,960
2,834
Securities, loans and time deposits
Gross liquidity
Total third-party borrowings
Net liquidity
425
369
3,385
3,203
-5,458
-5,499
-2,073
-2,296
110
Performance - Financial data
111
€ million
Consolidated statement of changes in equity
of Porsche AG for the period 1 January to 31 December 2017
-59
As of 1 January 2016
Effect of exchange rate changes on cash and cash equivalents
-744
1,337
- 1,228
-8
-33
57
88
1
-17
-91
-96
Cash flows from investing activities
Capital contributions
Profit transfer and dividends
Proceeds from issuance of bonds
Repayment of bonds
-3,140
-2,724
1,312
1,076
-2,371
- 1,904
2,513
2,707
-2,173
-3,582
Change in other financial liabilities
-25
917
Cash flows from financing activities
-786
- 1,438
Effects of currency translation
Financial instruments pursuant to IAS 39
Equity-
accounted
investments
Equity before
Non-controlling Group
non-controlling interests
equity
interests
45
7,857
3,806
-577
0
-643
210
32
0
-619
10,698
32
-619
10,700
32
-619
0
482
482
482
184
0
Currency
translation
Revaluations from pension plans
Cash flow
hedges
plans
Taxes recognized in other comprehensive income
Other comprehensive income
Profit after tax
Total comprehensive income
Capital contribution
Profit transfer and dividends
As of 31 December 2016
As of 1 January 2017
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 31 December 2017
112
Subscribed
capital
Capital
Retained
reserves
earnings
Accumulated
profit
Other comprehensive income
Revaluations
from pension
Securities
marked to
market
8,643
- 1,762
Change in investments in securities
Other financial liabilities
119
699
Other liabilities
Non-current liabilities
Provisions for taxes
Other provisions
399
316
9,084
9,446
82
77
1,841
1,636
Financial liabilities
1,770
1,830
Trade payables
3,048
2,589
Other financial liabilities
2,599
3,337
Other liabilities
850
783
3,669
Tax payables
3,687
864
32,235
Equity and liabilities
Subscribed capital
Capital reserves
45
45
10,245
8,933
Retained earnings
4,910
3,001
Equity before non-controlling interests
15,200
11,979
Non-controlling interests
0
1
Equity
15,200
11,980
Provisions for pensions and similar obligations
3,466
3,213
Other provisions
799
685
Deferred tax liabilities
614
Financial liabilities
Change in loans and time deposits
Current liabilities
557
-651
-29
Change in receivables (excluding financial services)
-577
-595
Change in liabilities (excluding financial liabilities)
710
405
Change in pension provisions
Change in other provisions
Change in leased assets
326
231
349
81
- 1,230
-1,171
Change in financial services receivables
Cash flows from operating activities
- 199
4,069
-88
3,864
Investments in intangible assets (excluding capitalised development costs),
and property, plant and equipment
Additions to capitalised development costs
Change in equity investments
Cash received from disposal of intangible assets and property, plant and equipment
Change in inventories
545
314
Other non-cash expense/income
10,735
10,809
35,019
32,235
Performance - Financial data
109
Consolidated statement of cash flows
of Porsche AG for the period 1 January to 31 December 2017
€ million
FY 2017
FY 2016
Cash and cash equivalents at beginning of period
Profit before tax
Income taxes paid
2,834
2,485
4,221
3,697
1,093
- 1,035
Depreciation, amortisation and impairment losses
Gain/loss on disposal of non-current assets
2,276
2,081
25
-26
Share of profit or loss of equity-accounted investments
4
−1
-92
2,640
0
95.8%
Based in the EU
119
Performance - Key figures
118
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.
(GRI 102-45)
Basis of consolidation
15,055
14,218
37,605
Vehicles
Panamera
79,700
71,693
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Vehicles
24,882
59,068
21,978
Vehicles
98,763
97,177
Macan
Supplier screening based on environmental criteria
Proportion of screened suppliers
100%
100%
100%
Cayenne
86,016
6.9
243
158
Panamera 4
243
330 9.9-9.8*
8.1
184
Panamera 4 Executive
330 10.0-9.9*
205
167
Panamera 4S
324
9.0
Panamera 4S Executive
324
440 10.2-10.1*
440 10.4-10.3*
718 Boxster GTS PDK
269
9.8-9.7*
7.3
330
212
Panamera
9.3
9.3
12.7
12.9
13.3
12.8
11.8
13370300
212
365
243
216
288
290
302
291
269
9.0
205
8.2
186
Panamera
7.4
168
216
10.9
9.5
8.2
370
11.7
6.3
8.3
190
Panamera 4S Sport Turismo
324
911 Carrera PDK
272
370
9.9
6.0
7.4
169
Panamera Turbo Sport Turismo
404
330 10.0-9.9* 6.7-6.6* 7.9-7.8* 180-178*
440 10.4-10.3* 6.9-6.8* 8.3-8.2* 189-187*
550 13.1-12.9* 7.4-7.3* 9.5-9.4* 217-215*
911 Carrera S
309
420
12.2
272
911 Carrera
243
Panamera 4 Sport Turismo
186
Panamera Turbo
404
Panamera Turbo Executive
404
6.3* 7.6-7.5* 173-171*
6.5-6.4* 7.8-7.7* 177-175*
6.7-6.6* 7.9-7.8* 180-178*
6.8-6.7* 8.2-8.1* 186-184*
6.9-6.8* 8.3-8.2* 189-187*
550 12.9-12.8* 7.3-7.2* 9.4-9.3* 214-212*
550 13.1-12.9* 7.4-7.3* 9.5-9.4* 217-215*
911
911 Carrera T
272
370
6.6
13.5
9.1
215
Panamera Sport Turismo
911 Carrera T PDK
272
370
11.5
6.8
8.5
193
7.1
9.1
515
8.2
6.0
718 Cayman GTS
269
365
12.3
7.0
718 Cayman GTS PDK
269
365
10.9
6.6
718 Boxster
220
300
9.9
6.0
718 Boxster PDK
220
300
9.0
5.7
9.5
350
257
718 Cayman S PDK
580
12.1
718
718 Cayman
718 Cayman PDK
718 Cayman S
911 GT3 PDK
368
500
19.4
718 Boxster S
220
9.9
6.0
220
300
9.0
5.7
257
350
10.7
6.5
300
257
350
10.7
8.1
184
911 GT3 RS
383
520
19.2
7.3
167
911 GT2 RS
6.6
20.2
700
556
222218668
7.5
7.5
7.6
7.6
8.8
8.8
9.2
9.0
18.1
066622321
500
911 GT3 with Touring Package
6.5
718 Boxster S PDK
257
350
9.5
6.0
718 Boxster GTS
269
365
12.3
368
7.0
88N
0750000 7500
7.4
168
911 GT3 manual transmission
368
500
19.7
6.9
158
6829
8.7
9.4
911 Carrera S PDK
13.0
7.4
9.5
216
331
450
10.9
7.1
8.5
192
272
370
12.4
6.9
8.9
206
Plug-in hybrids
911 Carrera 4 Cabriolet PDK
272
370
10.3
450
331
8.0-7.9* 9.2-9.0* 209-205*
8.4-8.0* 9.4-9.2* 213-209*
9.5-9.3* 11.9-11.7* 272-267*
340 11.3-11.1*
440 11.8-11.3*
550 16.4-16.2*
911 Carrera 4S
309
420
12.4
6.8
8.9
204
Cayenne S
911 Carrera 4S PDK
911 Carrera 4 GTS
6.5
911 Carrera 4 GTS PDK
309
420
10.3
6.6
7.9
180
Cayenne Turbo
250
324
404
911 Carrera 4 Cabriolet
Cayenne
7.9
Model
911 Carrera 4 GTS Cabriolet PDK
331
450
11.2
7.3
911 Targa 4
272
370
12.4
6.9
911 Targa 4 PDK
272
370
10.3
6.5
911 Targa 4S
309
420
12.6
6.8
911 Targa 4S PDK
9.7
7.6
13.3
450
Power
Power
911 Carrera 4S Cabriolet
309
420
12.6
6.8
9.0
208
output
182
[hp]**
Power con- CO₂-
sumption
emissions
911 Carrera 4S Cabriolet PDK
309
420
10.4
6.7
8.0
911 Carrera 4 GTS Cabriolet
331
Fuel con-
sumption
177
7.7
6.3
370
11.9
6.5
8.5
3 LO
188
Macan S
250
340 11.6-11.3*
195
Macan S Diesel
190
258 6.9-6.7*
6.6-6.4*
7.6-7.3*
5.9-5.7*
911 Carrera Cabriolet PDK
272
370
9.9
6.2
7.5
172
272
911 Carrera Cabriolet
8.3
6.9
309
420
10.1
6.4
7.7
174
Macan
911 Carrera GTS
331
450
Macan GTS
12.9
427
212
Macan
185
252
8.6-8.4*
911 Carrera GTS PDK
331
450
10.7
7.3
265
360 11.8-11.4*
911 Carrera S Cabriolet
Macan Turbo Performance Package
324
9.4
214
Macan Turbo Exclusive Performance Edition
324
400 11.8-11.5*
440 12.6-12.4*
440 12.6-12.4*
7.4-7.2* 172-167*
9.0-8.7* 212-204*
6.3-6.1* 164-159*
7.8-7.4* 9.2-8.8* 215-207*
7.8-7.5* 9.2-8.9* 216-208*
8.0-7.8* 9.7-9.5* 224-219*
8.0-7.8* 9.7-9.5* 224-219*
8.4
190
178
911 Carrera 4
370
12.2
6.7
8.7
201
Cayenne (E3)
911 Carrera 4 PDK
272
370
10.1
272
199
7.8
Macan Turbo
309
420
12.3
6.7
911 Carrera S Cabriolet PDK
309
420
10.2
6.5
911 Carrera GTS Cabriolet
294
331
12.9
7.3
911 Carrera GTS Cabriolet PDK
331
450
10.8
7.0
8168
8.8
202
450
911 Turbo S Cabriolet
sumption
540
42.73
100%
Waste disposal
2.84
7%
4.36
10%
7.26
17%
Emissions control
6.26
16%
10.89
25%
12.82
30%
Remedy costs
4.27
11%
7.84
18%
100%
43.57
100%
39.09
Total
22,272
21,171
18,802
Waste for recycling
20,592
19,312
17,121
Waste for disposal
1,680
11.11
1,859
1) The published key figures for 2016 have been partially corrected.
SCAN
THIS CHART
3,008
Investments in environmental protection € millions
2017
2016
2015
3,185
Total 1)
1,681
2015
26%
25.72
Female
Male
Employees by type of employment 2)
Employees subject to wage agreements
Employees exempt from wage agreements and executive employees
1) As of 2017, this figure relates to the entire Porsche AG Group.
2) Due to the equal payment and attractive framework conditions, the number of temporary
employees has not been reported separately.
20171)
2016
2015
Employee turnover 1) ✓
20172)
2016
2015
1.20%
0.60%
0.60%
29,777
27,612
17,549
16,241
Employees by gender
Employee structure ✓
(Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
2) The specified employee figures are based on reports by region
66%
20.48
47%
11.54
27%
1) Investments at the Zuffenhausen and Weissach sites have been
included in calculations.
Performance-Key figures
121
122
Key figures for personnel and social matters
Prevention
Unless specified otherwise, the key figures shown below concerning personnel and social matters relate in principle
Total workforce ✓
Porsche Group (including subsidiaries)
of which Porsche AG 2)
of which Porsche Leipzig GmbH 2)
Region: Germany
Region: Europe (excluding Germany)
Region: North America
Region: Asia
Other regions (Australia, Latin America)
1) As of 2017, this figure relates to the entire Porsche AG Group.
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
20161)
2017
Volume of waste in t✓
Indirect GHG emissions in t CO₂ equivalent (Scope 2)✓
Other indirect GHG emissions (Scope 3) 2) 3)
NOx emissions
SOx emissions
Weight of volatile organic compounds (VOC) ✓
6,405
110,231
92,602
54,338
49,023
45,318
39.25
45.01
40.37
0.41
0.28
0.25
Weight of dust emissions
125.29
0.11
116.93
0.3
110.05
49,659
53,928
57,117
Direct GHG emissions in t CO₂ equivalent (Scope 1) ✓
120
Key figures for environment and energy
The calculation and reporting method has been adjusted for 2017 and future reporting periods. The previous categories "Production sites"
(Stuttgart-Zuffenhausen and Leipzig incl. management) and "Other sites" (Weissach and Ludwigsburg) have been added.
New categorisation in line with internal management reporting: "Production sites" (Stuttgart-Zuffenhausen and Leipzig incl.
production-relevant external sites), "Development site" (Weissach incl. development-relevant external sites, "Other sites" (all other sites).
A detailed overview of the key figures can be found in the Porsche Newsroom: www.newsroom.porsche.com/reports
Emissions in t
2017
20161)
2015
Direct and indirect GHG emissions in t CO₂ equivalent (Scope 1 and 2) total ✓
Production sites
63,522
164,159
0.27
142,261
129,975
110,795
Development site
Other sites
14,752
N/A
N/A
3,213
34,184
31,466
45,557
Direct energy consumption according to primary energy sources in MWh ✓
2017
2016
Development site
Other sites
339,200
268,346
59,418
11,436
296,873
233,523
N/A
63,350
282,369
222.573
Water consumption (drinking water)
Volume of waste water
644,173
561,332
617,752
542,217
587,498
529,980
N/A
Production sites
1) The published key figures for 2015 and 2016 have been partially corrected.
1) The direct energy consumption is comprised of gas, combustible gas for manufacturing processes,
heating oil, special energy products and fuel.
2) The indirect energy consumption is comprised of electrical energy, district heating and
combined heat and power units (CHPUs).
Energy consumption in KWh per vehicle 1)
2017
2016
2015
1) Production sites only
SCAN
THIS CHART
2,485
59,796
24,481
14,569
Total 2)
20161)
2015
Total 1)
Production sites
Development site
Other sites
Fuel (in litres)
304,111
225,218
62,556
293,623
217,104
3,054
1,540,403
20151)
N/A
64,603
1,385,573
1) The published key figures for 2016 have been partially corrected.
2) The calculation method has been further developed for 2017, and the key figures for 2015 and 2016
adjusted in line with this method.
3) The emissions indicated relate only to business trips, i.e. made by train (Porsche AG only), plane and
rental car. A method for calculating Scope 3 emissions in logistics is currently under development.
SCAN
THIS CHART
Indirect energy consumption according to primary energy sources in MWh ✓
2017
2016
2015
Fresh water and waste water in m³✓
2017
265,915
199,443
N/A
53,530
1,504,843
11 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.
21 As of 2017, this figure relates to the entire Porsche AG Group.
4,148
3,994
Dr rer. pol. h.c. Francisco Javier Garcia Sanz
Betriebswirt
Member of the Executive Board of Volkswagen AG
with responsibility for Procurement
Frank Witter
Member of the Executive Board of Volkswagen AG
with responsibility for Human Resources and Organisation
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
Member of the Zuffenhausen/Ludwigsburg/Sachsenheim
Member of the Works Council of Porsche Automobil Holding SE
Works Council
Sabine Zach*
Diplom Volkswirtin [Economics Graduate]
Collective Bargaining Secretary at IG Metall
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 Works Council of Porsche Automobil Holding SE
Chairman of the Executive Board of Volkswagen AG
Matthias Müller
Chairman of the Supervisory Board of Volkswagen AG
Chairman of the Executive Board of Porsche Automobil Holding SE
Approx. 4.6
123
Further information
The Supervisory Board
Emission and consumption information
GRI Content Index
About this report
Porsche in figures - brief overview
The Supervisory Board
of Dr. Ing. h.c. F. Porsche AG
Hansjörg Schmierer*
Dr Wolfgang Porsche
Diplom-Kaufmann
Uwe Hück*
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
Manager responsible for members and finances of the IG Metall trade union, Stuttgart
Peter Schulz*
Diplom-Ingenieur (FH)
Model
Power
output
Power
[hp]
Fuel con-
Fuel con-
sumption
[kW]
(urban)
[l/100 km]
309
CO₂
sumption emissions
(extra-urban) (combined) (combined)
[1/100 km] [l/100 km] [g/km]
Fuel con-
CO₂
sumption emissions
911 Turbo S
427
580
11.8
911 Turbo S Exclusive Series
446
607
11.8
911 Turbo Cabriolet
397
(extra-urban) (combined) (combined)
[1/100 km] [1/100 km] [g/km]
Approx. 5.0
sumption
[kW]
Vice President of Human Resources, Management and Production
Jordana Vogiatzi*
Press officer for the IG Metall trade union - Stuttgart Administrative Office
Axel Weyland*
Head of Drivetrain Division at Porsche Engineering Services GmbH
Werner Weresch*
Member of the Group Works Council
Member of the general Works Council of Dr. Ing. h.c. F. Porsche AG
Head of shop stewards' committee
Deputy chairman of the Works Council Zuffenhausen/Ludwigsburg/Sachsenheim
Member of the SE Works Council of Porsche Automobil Holding SE
*Employee representative
sumption
(urban)
[l/100 km]
126
127
Emission and consumption information
Model
Power
Power
Fuel con-
Fuel con-
Fuel con-
output
[hp]
Performance - Further information
12.1
Approx. 4.8
2016
3,768
Male
16,451
18,337
17,963
Distribution of participants by employee category
Employees subject to wage agreements
93.1%
90.7%
85.8%
Employees exempt from wage agreements and executive employees
6.9%
9.3%
14.2%
20171)
2016
2015
5,317
2,872
24,460
17,363
21,731
21,798
3,461
3,458
Female
3,667
26,506
N/A
N/A
1,403
N/A
N/A
Training programme participants ✓
2017
2016
2,483
15,753
2015
N/A
N/A
868
N/A
N/A
259
N/A
N/A
Total number of participants
19,909
741
Number of accidents, lost days and fatalities ¹) ✓
25,911
18,312
2016
2015
Porsche AG
Porsche Leipzig GmbH
5.1
6.7
5.5
6.2
6.3
6.7
2№
2017
Porsche AG
12.7%
0.7%
12.2%
12.0%
0.8%
1.0%
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.
1) We do not report on minorities, as we are not permitted to collect this data due to personality rights.
Donations made in € million
Performance-Key figures
2017
Porsche Leipzig GmbH
2015
Proportion of foreign employees 1)✓
2016
16,419
Accidents 2)
3,866
1,923
1,817
Lost days ³)
Fatalities
☐ s
SCAN
THIS CHART
SCAN
THIS CHART
2015
2017
2015
177
171
1,708
1,957
165
2,542
0
1) It is not possible to report on employees from temporary employment agencies and external companies, or independent contractors.
23 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).
Injury rates 1✓
2017
2016
420
Scheufelen phoenixmotion Xenon
We carried out our business audit in consider-
ation of the International Standard on Assur-
ance Engagements (ISAE) 3000 (Revised):
"Assurance Engagements other than Audits or
Reviews of Historical Financial Information" is-
sued by the IAASB. We then planned and
executed the audit in such a way that we can
state with limited assurance that we are aware
of no issues that would lead us to believe that
the details marked with a "V" in the Company's
Report for the period from 01/01/2017 to
31/12/2017 have not been drawn up in ac-
cordance with the relevant GRI Criteria in all
significant aspects. This does not mean that a
separate audit opinion is issued for each
marked detail.
Dr. Ing. h.c. F. Porsche AG
Feb 2018
Service
This Annual and Sustainability Report has been prepared in accordance with the Global Reporting Initiative (GRI) standards on the basis
of the Core option. Compliance with the external reporting requirements has been checked within the framework of the GRI Materiality
Disclosures Service. All of the reported universal and topic-specific indicators included in the report are listed in the GRI Content Index
below, and their location in the printed and online versions of the report is shown. A detailed version of the GRI Content Index is available
in the Porsche Newsroom: www.newsroom.porsche.com/reports.
GRI standard
General Disclosures
GRI 102:
Disclosure
102-1 Name of the organisation
102-2 Activities, brands, products, and services
102-3 Location of headquarters
102-4 Location of operations
102-6 Markets served
102-5 Ownership and legal form
102-7 Scale of the organisation
Disclosures
102-8 Information on employees and other workers
Materiality
Empowering
397
540
11.8
7.5
9.1
212
*Range depending on the tyre set used
128
**Overall system performance
129
130
GRI Content Index
Key topics
Disclosure
GRI
Sustainable
102-9 Supply chain
102-10 Significant changes to the organisation and its supply chain
102-11 Precautionary principle or approach
40-43, 90-91, 119
→ Index/Text
4, 10-17, 26, 133
48-49, 52-58
→ Index
Text
10, 17, 34, 38, 40-41, 46-47, 91,
130-132, 133
→ Index
→Text
6-7
→ Text
31-33, 40-43,46-49
6-7, 126-127
→ Index/Text
→ Text
34-35
→ Key figures
25, 48-49, 52-53, 59, 122-123
→ Key figures
18-25, 53, 93-113, 118, 122
102-12 External initiatives
102-13 Membership of associations
102-14 Statement from senior decision-maker
102-16 Values, principles, standards, and norms of behavior
102-18 Governance structure
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
911 Turbo
Printed report
Omission
139
7, 18, 70-75, 128-129
→ Text
→ Index/Text
139
20-24
→ Index
20-24
Online version
69
66
56
[kW]**
(combined) [kWh/
220
[l/100 km] 100 km]
combined
[g/km]
196
8.9
206
Panamera 4 E-Hybrid
340
462
2.5
15.9
7.9
182
184
O77
8.7
396676
GRI 303: Water (2016)
Management Approach (2016)
GRI 103:
during production
Resource consumption
305-6 Emissions of ozone-depleting substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur oxides (SOX) and other
significant air emissions
305-4 GHG emissions intensity
Panamera 4 E-Hybrid Executive
305-3 Other indirect (Scope 3) GHG emissions
10.4
6.7
911 Targa 4 GTS
331
450
13.3
7.6
305-2 Energy indirect (Scope 2) GHG emissions
→ Text
340
2.5
2.9
16.2
911 Targa 4 GTS PDK
331
450
11.2
7.3
8.7
196
Panamera Turbo S E-Hybrid Sport Turismo
500
680
3.0
17.6
。8」8|g」g」g
680
500
Panamera Turbo S E-Hybrid Executive
220
15.9
9.0
208
Panamera 4 E-Hybrid Sport Turismo
340
462
2.6
462
15.9
184
Panamera Turbo S E-Hybrid
500
680
2.9
16.2
9.7
8.0
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
→ Index
GRI 103:
Management Approach (2016)
41,91
→ Index/Text
→ Index
119
→ Key figures
34, 38-39, 40-43
→ Text
→ Index
42-43
→ Key figures
→ Index
→ Index
→ Index
34, 38-39, 40-43
→ Text
→ Index/Key figures
→ Text/Key figures
34, 38-39, 44-45
41,91,119
→ Text
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
305-3 Other indirect (Scope 3) GHG emissions
Performance - Further information
Printed report
Online version
Omission
34, 38-39, 40-43
→ Text
25, 60-67,94-115,123, 135
→ Index/Text
→ Index
34, 38-39, 40-43
→ Text
34, 38-39, 40-43
→ Index
119
→ Text
→ Index
34, 38-39, 44-45
GRI 103:
Management Approach (2016)
GRI 301: Materials (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
34, 38-39, 44-45
New mobility concepts
GRI 103:
Management Approach (2016)
Energy and emissions
during production
GRI 103:
Management Approach (2016)
GRI 302: Energy (2016)
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
Material and sustainable materials
Omission
Online version
Printed report
→ Text
Restricted due to
obligation to main-
tain confidentiality
(for further details
see online index)
Information
not available
121
→ Key figures
(For details
see p. 121)
Management Approach (2016)
131
Key topics
Disclosure
Printed report
Online version
Omission
Key topics
Disclosure
132
GRI 103:
Fuel consumption and
vehicle emissions
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
GRI 205: Anti-corruption (2016)
GRI 206:
Anti-competitive Behavior (2016)
GRI 307:
Environmental Compliance (2016)
GRI 419:
Socioeconomic Compliance (2016)
Digital transformation
GRI 103:
Management Approach (2016)
204-1 Proportion of spending on local suppliers
308-1 New suppliers that were screened using environmental criteria
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
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
General Disclosures (2016)
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.
GRI 103:
Management Approach (2016)
Compliance
Supplier Social Assessment (2016)
GRI 414:
GRI 201:
Economic Performance (2016)
Long-term customer relations
GRI 103:
Management Approach (2016)
GRI 418: Customer Privacy (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
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
102-42 Identifying and selecting stakeholders
418-1 Substantiated complaints concerning breaches of customer
privacy and losses of customer data
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 103:
GRI 204:
Procurement Practices (2016)
GRI 308: Supplier Environmental
Assessment (2016)
GRI 409:
Forced or Compulsory Labor (2016)
GRI 412:
Human Rights Assessment (2016)
Responsibility in the supply chain
Long-term economic stability
102-43 Approach to stakeholder engagement
102-45 Entities included in the consolidated financial statements
34, 38-39
→ Text
34, 38, 133
133
133
133
133
139
130-132, 133
130-132
136
Vehicle safety
GRI 103:
Management Approach (2016)
GRI 416:
Customer Health and Safety (2016)
→ Text
31,34, 36, 38-39, 133
→ Index
118
102-46 Defining report content and topic boundaries
102-47 List of material topics
102-49 Changes in reporting
102-48 Restatements of information
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-44 Key topics and concerns raised
102-53 Contact point for questions regarding the report
102-55 GRI content index
102-56 External assurance
34-35
34-35
→ Text
→ Text
34-35, 38-39
→ Text
102-54 Claims of reporting in accordance with the GRI Standards
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
€ million
Depreciation, amortisation and impairment losses
12,095
12,623
13,665
€ million
Cost of materials
2,427
2,666
3,099
€ million
Capital expenditure 2)
11,009
12,841
14,404
2,276
€ million
2,081
Cash flows from operating activities
Profit after tax
3,382
3,697
4,221
€ million
Profit before tax
3,404
3,877
4,144
€ million
Operating result (EBIT)
3,843
3,864
4,069
€ million
2,124
Fixed assets
10,700
11,980
27,612
29,777
Total
Employees 1)
15,055
14,218
37,605
Vehicles
Panamera
79,700
71,693
59,068
Vehicles
Cayenne
86,016
24,481
Personnel expenses
€ million
3,200
15,200
€ million
29,143
32,235
35,019
€ million
Equity
€ million
Total assets
22,318
23,491
€ million
Sales revenue
Financials
2,605
2,875
21,533
3,139
2,640
2,335
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
Consultation
Rolf Antrecht
Conceptualized by
Meiré und Meiré
Art direction and editorial design
Meiré und Meiré
Digital design
Meiré und Meiré
Porsche Newsroom App
Storming GmbH
Printing
Druckstudio GmbH
Elena Storm, Press Officer for Sports Cars
Anja Wassertheurer, Director Product and Technical Communications
Christian Weiss, Press Officer for Procurement, Production & Logistics
Viktoria Wohlrapp, Press Officer for Sports Communications
Matthias Rauter, Press Officer for Human Resources and Sustainability
Nadine Toberer, Press Officer for Sales and Marketing
The auditor's report is not intended to be used
as a basis for third parties to make (investment)
decisions. Our responsibility is exclusively
to Dr. Ing. h.c. F. Porsche AG. We accept no
re-sponsibility for third parties.
Frankfurt, 28 February 2018
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
ppa. Nicolette Behncke, Auditor
ppa. Heinke Richter
Legal notice
Publisher
Dr. Ing. h.c. F. Porsche AG
Paper
Porscheplatz 1
Tel. +49 711 911-0
www.newsroom.porsche.com/reports
Dr Josef Arweck, Vice President Communications
Sabine Schröder, Director Corporate Publishing
Contact persons
Daniela Rathe, Director Politics and External Affairs
Maximilian Steiner, Coordinator Politics and External Affairs
Frank Scholtys, Director Corporate Communications
Tanja Deutschenbaur, Press Officer for Finance and IT
D-70435 Stuttgart
97,177
We issue this auditor's report based on the re-
mit agreed with Dr. Ing. h.c. F. Porsche AG. The
audit was carried out for Company purposes
and the auditor's report is only intended for the
information of Dr. Ing. h.c. F. Porsche AG regar-
ding the result of the audit.
INTENDED PURPOSE OF
INDEPENDENCE AND QUALITY ASSURANCE
OF THE AUDITING COMPANY
This responsibility of the Company's legal rep-
resentatives comprises the selection and
application of suitable methods of sustainability
reporting as well as making assumptions
and carrying out estimates regarding individual
sustainability details that are appropriate
under the circumstances. Furthermore, the legal
representatives are responsible for internal
controls that they have deemed to be neces-
sary in drawing up the Report and in ensuring
that the Report is free of significantly errone-
ous details - either intentional or unintentional.
The Company's legal representatives are re-
sponsible for drawing up the Report in accord-
ance with the principles referred to in the
Sustainability Reporting Standards of the Global
Reporting Initiative (hereinafter referred to
as the "GRI Criteria") and for the selection of the
details to be evaluated.
RESPONSIBILITY OF LEGAL
REPRESENTATIVES
We have subjected the sustainability details
marked with "V" in the annual report
(hereinafter referred to as the "Report") of
Dr. Ing. h.c. F. Porsche AG, Stuttgart (herein-
after referred to as the "Company") for the
period from 01/01/2017 to 31/12/2017 to
a business audit for the attainment of limited
assurance. Our remit refers exclusively to the
details marked with "V".
To Dr. Ing. h.c. F. Porsche AG, Stuttgart
AUDITOR'S REPORT BY THE INDEPENDENT
AUDITOR REGARDING A BUSINESS AUDIT
FOR THE ATTAINMENT OF LIMITED
ASSURANCE REGARDING SUSTAINABILITY
INFORMATION
135
SCAN
THIS PAGE
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 128-129.
Performance - Further information
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
Porsche Newsroom provides more information and an interactive comparison of current financial and volume data.
2) Relates to investments in intangible assets and property,
plant and equipment.
1) As of 31 December.
We complied with German professional regula-
tions regarding independence as well as
additional professional conduct requirements.
Our auditing company applies the national legal
regulations and professional notifications -
particularly those of the occupational statute for
auditors and chartered accountants ("BS WP/
VBP") as well as the IDW quality assurance
standard 1 "Requirements of quality assurance
in auditing practice" (IDW QS 1) issued by the
Institute of Public Auditors in Germany (Institut
der Wirtschaftsprüfer (IDW)) - and, as a con-
sequence, maintains a comprehensive quality
assurance system that comprises documented
regulations and measures with regard to com-
pliance with professional conduct requirements,
professional standards and decisive statutory
and other legal requirements.
RESPONSIBILITY OF THE AUDITOR
It is our remit to submit a limited-assurance
audit opinion based on the audit regarding the
details in the Report that are marked with "V".
Based on the auditing activities carried out and
the verifications obtained, we are aware of
no issues that would lead us to believe that the
details marked with a "✔" in the Company's
Report for the period from 01/01/2017 to
31/12/2017 have not been drawn up in accor-
dance with the relevant GRI Criteria in all
significant aspects.
AUDIT OPINION
■ Evaluation of the representation of the
selected sustainability performance details
■Comparison of details with the relevant
financial reporting data
■ Analytical evaluation of selected details in
the report
and supporting systems
■ Inspection of supplementary documentation
THIS AUDITOR'S REPORT
- Leipzig plant, Germany
■ Carrying out on-site visits to gain an im-
pression of the data-capture and consolida-
tion processes as well as the internal control
activities with regard to the selected key
figures:
surveying employees with regard to the ma-
teriality process and the creation of the
materiality matrix, with regard to the select-
ed management approaches and the data
capture and consolidation of the selected key
figures for 2016 and 2017 as well as regard-
ing the internal control system applied to
these processes
■ Inspection of relevant documents and
■ Assessment of the risk of significant incor-
rect details appearing in the Report, taking
the GRI Criteria as a basis
■ Surveying employees who were involved in
drawing up the Report regarding the
drawing-up process, regarding the internal
control system applied to this process
and regarding selected details in the Report
As part of our audit, we carried out auditing ac-
tivities and other tasks, including the following:
Gaining an understanding of the structure
of the sustainability organisation and the
inclusion of stakeholders
In the case of a business audit to attain limited
assurance, the auditing actions carried out
are less comprehensive than in a business audit
to attain reasonable assurance, meaning that
a significantly lower level of audit assurance is
required. Selection of the auditing actions lies
within the auditor's professional judgement.
- Zuffenhausen plant, Germany
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
98,763
Macan
34, 38-39, 46-47
Index
46-47, 121
→ Key figures
46-47, 121 → Index/Key figures
46-47, 121
→ Key figures
→ Text
34, 38-39, 46-47
→ Key figures
121
→ Key figures
→ Key figures
see p.121)
About this report
(For details
→ Key figures
121
not available
→ Text
Information
Information
87,121
Report contents and period
(GRI 102-46, 102-48, 102-50,
102-51, 102-52)
see p. 121)
→ Text/Key figures
→ Text
54-58
48-49, 52, 56-57, 123
4,38-39, 48-49
→ Text
→ Index/Key figures
Key figures
48-49, 52-53, 59, 122-123, 135
→ Index/Text/
→ Text
4,38-39, 48-49
(For details
→ Key figures
not available
→ Key figures
Index/Key figures
→ Text
87,121
120
121
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
Training and Education (2016)
GRI 404:
Management Approach (2016)
GRI 103:
Staff development
GRI 401: Employment (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
GRI 103:
Management Approach (2016)
Attractiveness as an employer
305-3 Other indirect (Scope 3) GHG emissions
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
306-3 Significant spills
GRI 305: Emissions (2016)
GRI 103:
Management Approach (2016)
→ Text
91
→ Key figures
Occupational health and safety
→ Key figures
82-89, 120
→ Text
34, 38-39, 46-47
→ Text
34, 38-39, 44-45
GRI 403: Occupational Health
and Safety (2016)
This documentation represents the second
time that Dr. Ing. h.c. F. Porsche AG has pub-
lished 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. The current report covers the
period from 1 January 2017 to 31 December
2017. Information from before this period is
also included for completeness. Unless other-
wise specified, the end date for all data is
31 December 2017. The editorial deadline was
in February 2018. Unless otherwise indicated, all
information refers to Dr. Ing. h.c. F. Porsche AG.
If content that was already reported has been
corrected, e.g. due to changes in collection
methods for key figures and data, this is indi-
cated. 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 contains further information on
Porsche's sustainability work. Management
approaches to major topics in this report are
contained in the section entitled "Sustainability
strategy and management".
→ Index/Text
48-49, 123 Index/Key figures
→ Index
→ Text
4,38-39, 48-49
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
403-1 Workers representation formal joint management-worker
health and safety committees
GRI 103:
Management Approach (2016)
48-49,58
Vehicles
Reporting standard and assurance
(GRI 102-49, 102-54, 102-55, 102-56)
This report and the information on Porsche's
sustainability work were authored in accord-
ance and compliance with the Core option
of the Global Reporting Initiative (GRI) stand-
ards. Previous reports used the G3.1 and
G4 guidelines which were current for those
points in 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 versions.
The GRI Materiality Disclosures service con-
firmed that the GRI requirements for materiality
disclosures were met. In addition to careful
data collection and recording via internal
reporting and processing systems as well
as detailed internal consolidation and auditing
of the information and data, an external
audit was performed on selected content
(materiality process, management approaches,
key figures). These items are marked accord-
ingly in the Report with a (✓). The auditor's
report by the independent auditor is on
page 136.
Corporate co-determination
27,942
Vehicles
Panamera
73,119
70,867
63,913
Vehicles
Cayenne
80,216
95,642
97,202
Vehicles
Macan
22,663
23,620
15,240
17,207
Production
Vehicles
21,978
24,882
26,427
Vehicles
718 Boxster/Cayman
375
Vehicles
25,114
918 Spyder
31,648
33,820
Vehicles
911
234,497
239,618
255,683
31,373
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 con-
solidated report and refers to the separate
non-financial report of Volkswagen AG for
the financial year 2017, which will be available
on the www.volkswagenag.com website in
German and English no later than 30 April 2018.
Vehicles
566
(for further details
→ Index
Not applicable
→ Index/Text
34
→ Text
4,38-39, 48-49
of association and collective bargaining may be at risk
407-1 Operations and suppliers in which the right to freedom
402-1 Minimum notice periods regarding operational changes
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 407: Freedom of Association
and Collective Bargaining
GRI 402: Labor/Management
Relations (2016)
Management Approach (2016)
GRI 103:
see online index)
718 Boxster/Cayman
Performance - Further information
134
31,350
225,121
237,778
32,365
44
7
Vehicles
918 Spyder
246,375
32,197
133
Vehicles
Vehicles
Deliveries
FY 2015
FY 2016
FY 2017
Brief overview
Porsche AG Group
911
305-1 Direct (Scope 1) GHG emissions
4BANK
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.
how to use the augmented
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.
Experience the fascina-
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
41st Porsche Tennis Grand Prix
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.
New Experience Centre in Shanghai
13
dreams
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
12
911 GT3 RS ON THE NÜRBURGRING-NORDSCHLEIFE
PORSCHE
MOTORSPORT
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.
New record set for the Nordschleife
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.
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
Performance Important events
Porsche enters Formula E
RADO
7:21
The Macan has been
given a full makeover,
with a revamp of the
design, comfort, con-
nectivity and driving
dynamics. The compact
SUV remains the sporty
flagship of its segment.
In keeping with Porsche's
design DNA, the new
Macan features a
three-dimensional LED
light panel on the rear of
the vehicle.
MATHIAS BUSSE
Personnel change at Porsche Taiwan
Mathias Busse, previously Chairman of the
Managing Board for the Porsche Centres
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.
PRODUCTION LAUNCH OF NEW MACAN
SWITZERLAND
Performance Important events
19
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
TOURNAMENT WIN FOR KAROLINA PLISKOVA
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
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.
PORSCHE ENTERS FORMULA E
based permanently in Le Mans. A further eleven
Porsche cars are driven by the race doctors
and safety teams.
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
MARC OUAYOUN
Performance Important events
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.
Zala
Julius Bär
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
BOSS
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
ABB
Porsche plans to be
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
JENS PUTTFARCKEN
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 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.
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.
Investment in Rimac
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.
PORSCHE 911 SPEEDSTER CONCEPT
PORSCHE
The 911 goes retro: 911 Speedster Concept
Taycan
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
MARCUS ECKERMANN
Personnel change in sales
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.
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.
Double victory in Le Mans
70
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
SCAN THIS CHART -
STIFTUNG
CREATION OF THE FERRY PORSCHE FOUNDATION
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.
DR. WOLFGANG PORSCHE
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."
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.
15
HILTRUD WERNER
MARTIN SCHOELLER TOOK PORTRAIT PICTURES OF SIX PORSCHE LMP1 DRIVERS
Porsche Engineering
GUNNAR KILIAN
PETER SCHÄFER
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.
ANDREAS RENSCHLER
Performance Important events
NO
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.
ROLEX
24
Performance Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
17
New Macan celebrates world première
Porsche launched its new Macan in Shanghai
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.
HOLGER PETERS
Changing of the guard at Porsche
Financial Services
16
Holger Peters took over as Chief Executive
MACAN
18
The Porsche Cayman
GT4 Clubsport at the
ADAC Rallye
Deutschland. 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.
PORSCHE CAYMAN GT4 CLUBSPORT
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.
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.
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.
LE MANY
2419
LE MANS
GFC
ROLEX
ROLEX
24 MA
LEM
WINNER
MARS
ROLEX
ROLEX
PORSCHE WINS PRO CATEGORY AT LE MANS
RO
LEM
Ferry Porsche
GRAND SLAM WIN FOR ANGELIQUE KERBER
MARC MEURER
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.
18
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
130
128
126
124
122
116
Production
Procurement
108
106
Sales, Production, Procurement
94
Research and development
Communication
Sport
Employees
Society
Sales
Employees, Society, Sport, Communication
Consolidated statement of changes in equity
Key figures
About this report
GRI Content Index
162
160
Emission and consumption information
158
The Supervisory Board
Value added statement
156
154
Key figures for personnel and social matters
152
Key figures for environment and energy
150
148
Key economic figures
Further information
Porsche AG Group - Brief overview
Management approaches
84
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-
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.
tions that a car company like Porsche needs to
face up to in a time of dramatic shifts across
the industrial landscape.
PORSCHE
Annual and
Performance.
THIS CHART
SCAN
investment and just over three billion to cover
development costs.
reality options
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.
Sustainability Report
of Porsche AG
2018
88
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?
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!
76
64
62
50
48
44
40
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.
38
Outlook
28
Business performance
Materiality analysis
Strategy and organisation
Stakeholder management
Important events
Letter from the Executive Board of Porsche AG
36
Legal notice
Sustainability strategy and sustainability management
144
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
Your Executive Board
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.
GT3RS
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.
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.
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.
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.
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.
S.GO 5090
00
IMPORTANT EVENTS
in electromobility
Billions of euros to be invested
PORSCHE STUDIO BEIRUT
165
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.
Larger luggage compartment
PORSCHE
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
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.
T
Dear Reader,
Consolidated statement of cash flows
140
Consolidated statement of financial position
138
Consolidated statement of comprehensive income
136
Consolidated income statement
142
Results of operations
Net assets
Financial analysis
168
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
166
134
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Financial position
Letter from the Executive Board of Porsche AG
Financial data
Uwe-Karsten Städter
Procurement
Finances and IT
Detlev von Platen
makerm mains the p.pk my this duome
of the Executive Board
Lutz Meschke
Deputy Chairman
Michael Steiner
Michal fluimer
Sales and Marketing
Research and Development
Executive Board
Andreas Haffner
Human Resources and
Labour Relations
146
Albrecht Reimold
Дольков
Deller von
Production and Logistics
Oliver Blume
Chairman of the
2.2%
0.2%
2015
0%
7.7%
2013
2014
2.6%
28
3.2% Global economy
2.9% US
2017
2018
Performance - Important events
6.6% China
1.8% Western Europe
1.5% Germany
29
2018: New record set for deliveries
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.
Economic growth
Percentage change in GDP
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.
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.
2016
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.
Porsche bought into
WayRay in September as
a strategic lead investor.
This technology start-up
from Zurich develops
and produces holo-
graphic augmented
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.
Porsche Exclusive has further refined the
vehicle's distinct style and developed the new
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.
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.
logy is soaring. Since February 2018 Porsche
has no longer included any diesel models in
its portfolio.
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-
A diesel-free future
reality head-up display
technologies.
Car body parts joint venture
PORSCHE
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
Six-hour charity run
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.
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.
SIX-HOUR RUN
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.
THIS CHART
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
Asia-Pacific, Africa
108,578
and Middle East
30
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
Performance - Important events
SCAN
Year-on-year comparison
+4%
31
South America: Stability in a
volatile region
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.
Brazil: Growth nudging 30 per cent
The Porsche subsidiary established in Brazil
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
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.
Europe
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.
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
to 5,133 delivered vehicles.
UK: Strong growth in 911 sales
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.
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
77,216
70,461
North America
Europe
America
2018
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.
Canada: Renewed substantial increase
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.
Porsche delivered
256,255 new vehicles to
customers in 2018,
more than in any previ-
ous financial year, and an
increase of four per cent
on the previous record
set in 2017.
250
Deliveries
of new vehicles
200
189,849
150
100
50
0
0
256,255
246,375
237,778
225,121
2014
2015
2016 2017
Deliveries in 2018
Dring Part
Dolfswagenment
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.
The return of the Porsche 935
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
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.
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.
Puristic design, maximum driving pleasure
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.
The new 911 GT2 RS Clubsport
PORSCHE IMPACT
PORSCHE ROAD TRIP APP
25
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
2 Personen-all inclusive Wellnesspaket
Hotelübernachtung
24
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.
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.
Porsche Road Trip
26
718 T
Porsche's plug-in hybrid
vehicles again proved
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.
Car market
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).
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
27
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
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.
Boxster and Cayman
ranges combines the
220 kW (300 hp) turbo
four-cylinder boxer
engine with a particularly
emotional Porsche
driving experience.
The new model in the
26
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
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 SOUND NAC
22
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
21
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Important events
20
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
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.
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.
MICHAEL MÜLLER
New lap record at the Nürburgring
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.
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.
ayurvedische Küche
Exidusives
Yoga-Entspannung u
zum Wohlfühlen
Deborttagrethenk for are Mutter
Handgemachte 
erior Design Accessoires
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.
BRICK BUILDING, THE CURRENT-DAY PLANT 1
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
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
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
RECORD
64033
MANTHEY RACING
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.
23
very popular. In the case
of the Panamera, hybrids
accounted for 67 per
cent of sales in Europe.
Accounting for a share
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.
drivers.
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.
OUTLOOK
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.
35
Performance - Important events
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.
billion
Overall, we delivered four per cent more Porsche vehicles
than in the previous year.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
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.
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.
Automotive market development
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.
Management approaches
Materiality analysis
of 42 per cent, the Sport
Turismo was another
popular choice among
European Panamera
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
The market volume for Western
Europe will remain at the
previous year's level.
Western Europe
With regard to the German auto-
mobile market, we are expecting a
slightly lower volume of sales in 2019.
Germany
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
Delivery of new vehicles
256,255
Stakeholder management
billion
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.
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
Asia-Pacific: Three models record
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.
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
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.
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.
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.
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.
The operating result grew by four per cent.
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.
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.
double-digit growth
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.
Middle East, Africa and India: Growing demand
for the Cayenne
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.
Operating profit
The Macan was the best-selling
Porsche model.
Macan sales
86,031
Capital expenditure (Automobile sub-group)
Capital expenditure (vehicles business)
grew by ten per cent.
billion
€1.9
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.
€4.3.
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
twelve per cent more
units than in 2017.
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.
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.
Australia/New Zealand: A strong year for the
Porsche 911
Employees
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.
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.
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
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:
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.
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 4 - Quality education
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.
SDG 9 - Industry, innovation and
infrastructure
SDG 12-Responsible consumption
and production
The expectations of
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.
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
GOALS
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.
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.
The United Nations' goals for
sustainable development
Employees &
Society
41
3 W
Porsche Strategy 2025
Sustainability action areas
Business &
Customers
Product
Responsibility
STRATEGY AND ORGANISATION
(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.
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:
- Business & Customers
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 eco-
nomic success. Sustain-
ability is therefore a key
cross-cutting issue
in the Porsche Strategy
2025.
40
Sustainable Development Goals
40
- Environment & Energy
PORSCHE
Environment &
Energy
- Employees & Society
All activities relating to sustainability, and
all strategic considerations and aims are
structured around these four areas.
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.
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 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
Performance - Sustainability strategy and sustainability management
- Product Responsibility
Good health and
well-being
14
Clean water and
sanitation
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.
16 ▾
External dialogue
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.
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.
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.
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.
Internal dialogue
(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.
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
(GRI 102-40, 102-43, 102-44,
Life on land
15-
Life below water
Industry, innovation
and infrastructure
1
No poverty
4
Quality education
7 %
Affordable and
clean energy
10 <>
Reduced inequalities
2
SSS
Zero hunger
5 9
Gender equality
8 M
Decent work and
economic growth
11
Sustainable cities
and communities
12 GO
Responsible consumption
and production
13
Climate
action
6 7
t
Sport associations/sport
clubs
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.
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
of the subject within the company and to build
on employees' role as knowledge multipliers
in the outside world.
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
PRODUCT RESPONSIBILITY
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.
53
52
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.
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 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.
- 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
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.
Performance Sustainability strategy and sustainability management
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.
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.
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
as the technical solution has been approved,
vehicle owners will be contacted accordingly
by their Porsche dealers.
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
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.
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's first all-electric model, is redefining
sports car construction in terms of perform-
ance, driving dynamism and range.
- 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.
In addition to a wide
range of measures to
increase efficiency
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,
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.
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.
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.
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.
The ultimate vision in terms of vehicle safety is
the general avoidance of accidents. Porsche
Porsche's code of conduct
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
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.
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.
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.
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.
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
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.
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.
"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".
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 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.
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.
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.
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.
50
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-
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.
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.
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
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.
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.
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.
Porsche always con-
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
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.
Compliance training
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.
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.
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
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.
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.
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
Economic stability and
digital transformation
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.
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.
58
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
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.
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".
Attractive employer
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.
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.
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.
EMPLOYEES & SOCIETY
57
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.
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.
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.
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.
Sustainability principle
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
59
Performance Sustainability strategy and sustainability management
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.
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.
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.
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
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.
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.
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.
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.
candidates to take on management roles, and
specific qualification and talent promotion
measures tailored to the target group in the
field of production.
on electric technology,
digitalisation and
connectivity.
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
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
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.
Performance Sustainability strategy and sustainability management
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.
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.
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.
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
is located in an urban area. The employees
based there receive a monthly subsidy towards
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
another key area. An interdepartmental project
has been launched to determine how to im-
prove the traffic situation and the mobility of
The mobility options offered to employees are
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.
56
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.
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.
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.
pre-development phase and taken into account
Performance Sustainability strategy and sustainability management The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161. 55
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
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.
New mobility concepts
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
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.
soil protection, dealing with contaminated
sites, hazardous materials and waste, as
well as emergency preparedness, water and
nature conservation and energy efficiency.
The energy and environment management
policy covers emissions (air/noise) and
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.
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
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".
Energy, emissions and resource consumption
during production
for feedback and evaluating processes have
also been firmly enshrined in the organisa-
tional structure.
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
on a continuous basis along the entire value
chain, and improvements are made where
necessary.
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
Sustainability principle
ENVIRONMENT & ENERGY
by more than 80 per cent and thus reduced
congestion and emissions.
site, which accelerated the construction time
In addition to the official certifications, Porsche
also carries out internal reviews of compliance
with environmental and energy legislation
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.
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.
Sustainability principle
I
I
I
45
Performance - Sustainability strategy and sustainability management
Cultural
institutions
I
Sustainability
experts/networks
Student
Universities/
colleges
44
State ministries/
Federal ministries
State Parliaments/
Federal Parliament
EU institutions
initiatives
||
|
I
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
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.
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
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 Expert Group is being expanded on an on-
going basis.
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 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 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.
A transparent internal structure with defined
roles and responsibilities allows sustainability
topics to be handled rigorously and effectively
throughout the business.
(GRI 102-46, 103-1)
Sustainability organisation
Sustainability Team
Interface for relevant topics
|
Politicians & authorities
Porsche Strategy 2025
Sustainability management
Social initiatives
Science
IG Metall (indus-
trial union)
employers' association)
Südwestmetall
(Baden-Württemberg
Employees
Works
Council
Volkswagen
Group
Chambers of Industry
Residents at site
locations
drivers
Individual Porsche
The most important internal and external stakeholders for the company,
established on the basis of internal analysis.
(GRI 102-40, 102-42, 102-43, 102-44)
Our stakeholders
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.
Porsche
Clubs
& Commerce/
Chambers of Skilled
Trades & Crafts
Verband der Auto-
mobilindustrie e.V.
(German Association
of the Automotive
Suppliers
Partners in society
Environment &
Energy
Employees &
Society
Business partners
Porsche Centres
PORSCHE
Product
Responsibility
Business &
Customers
Customers & residents
Local/city administra-
tions at site locations
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.
Kraftfahrtbundesamt
(German Federal Motor/
Transport Authority)
Trade unions / associations
Industry (VDA))
Schools
Sustainability Board = Porsche Executive Board
Set direction for sustainability
Commission reporting
Internal
Develop strategic aims and statements on sustainability
Define indicators and lighthouse projects
Set content of reporting
Responsibility in the supply chain pp. 51-52
■New mobility concepts
p. 56
p. 58
Attractive
employer
Resource consumption
during production
p. 57
p. 57
Digital transformation
Environmentally
compatible logistics
p. 50
Staff development
pp. 58-59
Long-term
economic stability
Energy and emissions during production ■
p. 57
pp. 50-51
Fuel consumption and vehicle emissions ■
pp. 54-55
■Long-term customer relations
Materials and sustainable materials
pp. 55-56
Occupational health and safety
pp. 60-61
p. 50
Compliance
pp. 52-53
Sustainability Expert Group
BUSINESS & CUSTOMERS
MANAGEMENT APPROACHES
OUR FIELDS OF ACTION
49
Performance - Sustainability strategy and sustainability management
48
■Corporate co-determination
p. 60
Equality of opportunity and equity
p. 73
Business relevance for Porsche
Sustainability communication &
stakeholder dialogue
pp. 44-45
p. 50
pp. 76-87
Low impact
Social
engagement
Conservation and biodiversity
p. 57
Vehicle safety ■
p. 54
Medium impact
Contribution to regional
development & infrastructure
Stakeholder relevance
|
Sustainability Council
Source of advice and impetus
|
I
I
I
I
|
Performance - Sustainability strategy and sustainability management
46
46
INTERNAL
Provide representatives for Sustainability Expert Group and inform them about
current topics, provide data for reporting
High impact
Specialist departments and committees
EXTERNAL
|
|
MATERIALITY ANALYSIS
Materiality matrix
(GRI 102-44, 102-46, 102-47, 103-1)
47
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.
results of this process
(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.
Materiality analysis
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.
Porsche pooled the
The members of the Sustainability Council
also had the chance to provide detailed
feedback on sustainability at Porsche and on
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.
Stakeholder survey
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.
(GRI 102-40, 102-42, 102-43, 102-44,
102-46, 102-47, 102-48, 103-1)
the opportunities and risks during individual
expert interviews. They presented specific
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.
6,866
28,764
2018
Total workforce in Germany
Leipzig
4,392
Ludwigsburg
2,971
Weissach
2017
Compared to previous year
26,506
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.
2016
24,681
Performance - Employees, Society, Sport, Communication
SOCIETY
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.
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.
HER
75
HEN GL
WOLFGANG
Bietigheim
951
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-
+9%
611
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.
489
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.
Performance - Employees, Society, Sport, Communication
73
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
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.
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.
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
Sachsenheim
IG Metall are another
important success
Employees
at locations in Germany
Zuffenhausen
11,727
previous years.
PORSCHE GASTRONOMY
WEISSACH CANTEEN
74
Other German locations
Schwarzenberg
757
factor.
WUNSCH
HE
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.
Opportunities for refugees
Klassik airleben
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
only the concerts in the Gewandhaus in Leipzig,
but also the orchestra's international tours.
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.
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.
Opera Ball with large raffle
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.
LEIPZIG OPERA BALL
Opernhall
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.
MAHOL
13/10/18
MAIN PRIZE: 718 BOXSTER
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 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 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.
78
Performance - Employees, Society, Sport, Communication
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
79
72
ČESKO
Education and science
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.
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.
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
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.
INTEGRATION YEAR
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.
Porsche Cars North America:
diverse commitment
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.
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.
STUTTGART "BALLET IN THE PARK"
Porsche China gets fit for the future
young artistic talents.
FERRY PORSCHE FOUNDATION
76
VDI GARAGE
Technology workshop in VDI GaraGe
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.
Performance - Employees, Society, Sport, Communication
77
Culture
"Jugend musiziert"
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
22
LO
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.
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,
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.
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).
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.
OPEN INNOVATION CONTEST
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.
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).
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.
Employer attractiveness and encouraging
young talents
Performance - Employees, Society, Sport, Communication
the campaign was already awarded the
"HR Excellence Award 2018".
INNOVATION AREAS
2016 2017 2018
2015
2014
0
32,325
27,612
29,777
5
10
15
64
20
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 objective is to link
the Porsche Code to
all the HR processes.
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.
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.
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
ONE FAMILY
RESPECT
EACH OTHER.
PIONIERGEIST MENSCH SPORTLICHKEIT
HUNGRY.
STAY
KNOW WHERE YOU
COME FROM.
HERZBLUT
The Porsche Code
replaces the previous
management guidelines.
It was enhanced and
developed in 2018.
Porsche mood barometer
WITH COURAGE
FUTURE
LOOK INTO THE
THE BOX.
THINK OUTSIDE
PASSIONATELY.
LIVE
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.
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.
PORSCHE CODE
Performance - Employees, Society, Sport, Communication
20
end of 2019.
Sport
Society
Employees
Employees, Society, Sport, Communication
61
Performance Sustainability strategy and sustainability management
60
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.
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.
An organised and struc-
tured system for occu-
pational health and
Communication
Occupational safety is a
top priority for Porsche
and its employees.
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.
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.
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.
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 health and safety
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.
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.
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.
Corporate co-determination
FIGHT
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.
22,401
EMPLOYEES
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.
25
onto the market at the
driver of jobs is the
Taycan, which will come
Employees
Porsche
ous year. A significant
at the end of the previ-
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
The number of employ-
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.
Successful ideas management
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.
department, the respective process owner can
now change and maintain processes directly
in the system.
Process management and optimisation
The employees are actively involved in the
continuous optimisation of personnel pro-
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.
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.
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 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.
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.
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".
innovation management
Personnel strategy and
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.
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
TAKE
24,481
88
71
Performance - Employees, Society, Sport, Communication
FIT FOR DIGIT@L
70
FIT FOR DIG
BASICS
DIE TREIBER DER
DIGITALEN
TRANSFORMATION
DER KERN DER
DIGITALISIERUNG
WAS BEDEUTET
DIGITALISIERUNG
Alles Digital
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.
Work and family
Fix für Digit
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.
Porsche learning platform, media laboratory
and learning community
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.
"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
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.
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.
Knowledge campaign "Fit for digit@l"
significantly expanded
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.
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.
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".
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.
Among other things, two
high-quality modular
programmes have been
developed with interna-
tionally leading business
schools. In the year
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.
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.
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.
RESPONSIBILITY.
Occupational health and safety
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.
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.
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".
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
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.
C<>DE
HOCKETSE
In September, over 3,500 employees partici-
pated in the run and collected a total of
195,000 euros for charitable causes.
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.
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.
Co-determination
CODE CAMP
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.
the worldwide Group subsidiaries and Bentley.
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.
The "Porsche Advanced Management
TRAINEES, LEIPZIG
Pors
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
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.
students spent several weeks at Bentley
and Bugatti.
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
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.
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.
68
TRAINEES, ZUFFENHAUSEN
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
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.
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).
Training
66
67
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
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.
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.
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.
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,
FAIR.
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
Ausbildungszentrum
training centre
of automobile construction, around 50 per cent
of places are now filled in the IT and electrical
engineering courses.
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.
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.
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.
Porsche development programme
the graduates get to know the work processes
of various divisions, main departments and
departments.
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,
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.
Seminars for shift workers
Porsche Warm Up
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.
Staff development
69
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.
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.
Porsche school work-
shop in Leipzig Plagwitz
offers the chance to
experience technology.
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
Performance - Employees, Society, Sport, Communication
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.
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.
them were successfully integrated into the
training and job market in cooperation with
handicraft businesses.
Porsche has also successfully continued the
integration year for refugees. 15 young people
took part in the project, and almost all of
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.
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.
LO
S.GO 227H
9:11 MAGAZINE
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
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.
More content on Patrick Dempory
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.
9:11 Magazi
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.
DIGI
To good neighbours
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.
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.
Carrera
Eine Kultur
für uns alle
Carrera
WISSEN
92
UNG
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 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.
the Christophorus Edition
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.
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.
STO
Performance - Employees, Society, Sport, Communication
PHO
RUS
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.
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.
CHRISTOPHORUS ONLINE
CHRI
PHO
STO
RUS
90
Performance - Employees, Society, Sport, Communication
91
Carrera
Perfekt ist
nicht genug
#2
70 Jahre
Porsche Sportwagen
#3
Informed employees
"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.
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.
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.
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.
New series of books:
Zehn Millionen Euro für Ferry-P
Stiftung
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.
9:11
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).
Hemmingen and Rutesheim become
Porsche sites
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.
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.
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
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
99
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CARRERA ONLINE
97
Performance Research and development
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.
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.
MISSION E CROSS TURISMO
Safety cars and support vehicles for
the FIA WEC
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.
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
from the Porsche crest of the works race cars.
THE 911 TURBO AS SAFETY CAR
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 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.
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.
In late June, Timo Bernhard, at the wheel of
the 919 Hybrid Evo, lapped the 20.832-kilo-
metre Nürburgring Nordschleife race circuit
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.
GT3 RS
S:GO 5000
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
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.
96
919 HYBRID EVO
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
45286
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.
ANNIVERSARY BOOK
SV Stuttgarter Kickers, SC Bietigheim-Bissingen Steelers and the Porsche Basketball-Akademie
Ludwigsburg.
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,
Turbo for talents
Youth support
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.
SPORT
83
Performance - Employees, Society, Sport, Communication
82
82
BINEE START-UP
PLANTING CAMPAIGN BY THE TRINKWASSERWALD ASSOCIATION IN LEIPZIG AND WEISSACH
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.
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 SAFARI
18!
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.
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 TENNIS GRAND PRIX
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.
SAMI KHEDIRA
YOUTH TOURNAMENT "LEIPZIG QUARTER-FINAL"
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
PORSCHE NIGHT OF TALENTS
was specially developed
for youth training.
The Coaching-Mobil -
a trailer with sports
equipment and instru-
ments to measure
performance data -
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.
d
a benchmark for comparing results.
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
Porsche Coaching-Mobil
PORSCHE YOUTH DEVELOPMENT
Karolina
Pliskova
Winner
2018
Turbo für Talente.
Porsche Jugendförderung.
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.
Sami Khedira
Ambassador of youth development:
Porsche Nacht der Talente 2018
FEED
Women's tennis
Bees and safari at Porsche Leipzig
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.
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
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.
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
K
Social affairs
Porsche China supports UNICEF
In China, too, the Porsche team ran for a good
cause in June on the occasion of the anni-
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 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.
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.
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.
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.
Use of recycled paper
Sustainability Weeks to educate
Environment
81
Performance - Employees, Society, Sport, Communication
80
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.
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.
Financial help for junior sportsmen
and women
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
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.
Karolina Pliskova wins the Porsche Tennis
Grand Prix
Levi's
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."
89
Performance - Employees, Society, Sport, Communication
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.
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.
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.
Communication using social media
BACK TO TAPE
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
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.
a wide range of content, and which provides
both a central social media hub and a research
tool for journalists.
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
PLUS
CROSSTURISMO
BUTO
PORSCHE
auto
Auto
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.
PORSCHE SOUND NIGHT
PORSC
SPORTWAGEN
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.
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
ODORT
Forgotten Time
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
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.
The year under review
was also characterised
911 GT3RS
of the media reports struck a negative tone.
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 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
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.
PREMIÈRE OF THE CROSS TURISMO
of the conference was offered; international
media reporting reached an audience of
around 16 million contacts.
trend.
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.
THOMAS
Porsche Golf Circle grows
PORSCHE EUROPEAN OPEN IN HAMBURG
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 Generations Open goes into
its third year
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 Golf Cup grows again
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 European Open in Hamburg
Golf
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."
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.
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.
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.
PORSCHE TEAM GERMANY
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.
Three of these players, whose class and
personality stand out both on and off the
court, present Porsche as brand ambassadors:
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.
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.
Successful partnerships and a heart for the
next generation of tennis players
85
sportscars AUTOMOVIL
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
Performance - Employees, Society, Sport, Communication
84
Angelique Kerber: from Wimbledon to the Porsche Museum
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.
PORSCHE
ANGELIQUE KERBER
and proactive communi-
ding to media enquiries
cation activities in equal
measure.
This applies to respon-
86
about all Porsche topics.
The public relations and
press department
provides external and
internal stakeholders
with the latest compre-
hensive information
THE YEAR
PORSCHE COVER
edition
Porsche
Automabwoche
ECON AWARDEE OF THE YEAR 2018
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.
88
2018. This commitment has brought rewards:
Porsche made the front cover on more than
70 different media outlets.
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
to make a key contribution to value-creating
company growth.
of the communication, allow public relations
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
Performance - Employees, Society, Sport, 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.
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.
87
COMMUNICATION
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.
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.
PORSCHE
SALES
"Excite!" initiative
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.
911
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
Production
Procurement
High customer satisfaction
Sales, Production, Procurement
Sales
718 T
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Research and development
104
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.
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).
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.
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
Puristic design: 718T
5-606227
MACAN S
Macan S, and the driver
will notice this most
718 CAYMAN
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.
105
MACAN
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.
PANAMERA
East since January 2018,
and the "Porsche Studio
Cape Town" was opened
in July 2018.
A lot of detailed work
has also gone into the
brakes of the new
in China, four further
locations were added
in 2018. The "Porsche
Studio Beirut" has
ensured a stronger
presence in the Middle
After being launched in
2017 with "Porsche in
Sylt" and the "Porsche
Studio Guangzhou"
PORSCHE STUDIO MAILAND
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.
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.
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.
Aftersales: professional service
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.
Digital charging service for electric vehicles
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.
CAYENNE
Porsche Turbo Charging
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.
In June 2018, the first
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Sales, Production, Procurement
S.GT 9912
In addition to the
"Brand Image Award-
Best Performance
Luxury Brand", the
company also received
the "Best Resale Value -
Luxury Brand" award.
S.GO 6021
108
911 GT3
718 BOXSTER
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.
the "Best Cars 2018" list for the second year
running. The Panamera again took top honours
in the luxury class.
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
Charging infrastructure for
a 10.9-inch interior touchscreen.
CAYMAN GT4 CLUBSPORT
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.
PANAMERA GTS AND PANAMERA GTS SPORT TURISMO
101
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Research and development
NEW EXCLUSIVE PORSCHE 935
MACAN
100
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.
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.
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.
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.
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.
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.
Two new GTS models: two athletes join the
Porsche Panamera family
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.
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.
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 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.
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.
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.
1949-2018
PORSCHE
PORSCHE
911 SPEEDSTER CONCEPT
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.
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.
110
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.
New exclusive Porsche 935
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.
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
diameter at the front, 365 millimetres at the
rear) deliver exceptional deceleration.
Mobil T
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
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.
New Macan S
911 GT2 RS CLUBSPORT
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.
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.
World première of the Porsche 911 GT2 RS
Clubsport
103
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance Research and development
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.
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
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.
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.
PORSCHE 360+ APP
102
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.
THE NEW PORSCHE 911
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.
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.
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
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 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.
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.
As part of a spectacular event in Los Angeles,
Porsche presented the latest generation 911.
The eighth generation of this Porsche icon
The new Porsche 911: stronger, faster
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.
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.
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
Performance Sales, Production, Procurement
01
PORSCHE STUDIO BEIRUT
Performance - Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 160-161.
SCAN
THIS CHART
2018
2017
2015 2016
2014
0
234,497
239,618
255,683
268,691
50
117
100
200
203,097
Production volume
Vehicles
250
116
PRODUCTION IN ZUFFENHAUSEN
718 Cayman were
produced at the
multi-brand facility
in Osnabrück.
In addition, a further
4,764 units of the
ranges are manufac-
tured in Zuffenhausen.
the 911 (36,236 units),
718 Boxster (12,515
units) and 718 Cayman
(6,379 units) model
The sports cars from
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 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.
150
PRODUCTION IN ZUFFENHAUSEN
Investment in the future: Taycan
In addition to the traditional two-door sports
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.
119
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance - Sales, Production, Procurement
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.
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.
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 view of the increasing traffic volume in urban
areas, Porsche is also committed to playing
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.
Green Logistics
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.
Zero Impact Factory
SUSTAINABILITY
production facility
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.
PRODUCTION IN LEIPZIG
PRODUCTION IN LEIPZIG: MACAN
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 ZUFFENHAUSEN
118
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.
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
Engine construction, chassis production,
saddlery
PRODUCTION IN ZUFFENHAUSEN
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.
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.
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.
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.
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.
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.
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.
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.
Drive
to the main production plant in Zuffenhausen,
as well as the audio guide for the museum.
A digital assistant answers questions.
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
VR glasses and Porscheplatz app
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.
Drive
Explore
Mission E via augmented reality
AUGMENTED REALITY APP
Brake
Starten Sie eine Probefahrt in Augmented Reality
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.
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.
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.
at historic Plant 1
Factory collection in Zuffenhausen
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.
PORSCHE
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.
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".
New Porsche Centre in Hamburg
PORSCHE EXPERIENCE CENTRE HOCKENHEIM
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.
Sales pop-up: new sales concept
11
111
PORSCHE STUDIO BEIRUT
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
112
Performance - Sales, Production, Procurement
113
PRODUCTION
115
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
"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.
for historic models
3D printer provides spare parts
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.
PROJECT GOLD
Performance - Sales, Production, Procurement
114
PROJECT GOLD
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.
Highly attractive collector's item: Porsche
Classic built the last 911 Turbo with an
air-cooled engine - 20 years after the end of
"Project Gold": 911 classics made of
Genuine Parts
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
In addition, for the first time the Oldtimer-
Grand-Prix held two races in the current
Porsche Carrera Cup Deutschland.
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.
AvD-Oldtimer-Grand-Prix:
SPORTSCAR TOGETHER DAY
more than 40,000
Porsche fans joined in
the festivities.
in Stuttgart, at which
at Cannstatter Wasen
"Sportscar Together Day"
events were held at the
brand's sales locations
all around the world.
One highlight was the
"Sportscar Together Day"
SPORTSCAR TOGETHER DAY
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" worldwide
PORSCHE CHARGING SERVICE
The Speedster Concept: open-top, pure and
with over 500 hp
109
127
Non-current other financial liabilities recorded
growth of € 96 million. This increase relates
mainly to the marking-to-market of derivative
financial instruments.
Deferred income tax liabilities amounted to
€ 650 million compared with € 614 million
in the prior year.
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,
at 31 per cent as of the end of the fiscal year.
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.
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.
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.
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
Other provisions
Current liabilities
1) The prior-year figures were restated.
126
Equity and Liabilities
Equity
16,477
rise in the number of eligible employees.
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
Cash, cash equivalents and time deposits
2,635
7
3,067
9
Current assets
11,151
29
9,772
28
38,159
100
35,019
43
100
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.
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).
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.
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.
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.
Deferred income tax assets amounted to
€ 730 million as against € 370 million in the
prior year.
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.
Non-current and current receivables from
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.
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.
Cash, cash equivalents and time deposits
decreased by € 432 million year on year to
€ 2,635 million.
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.
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
NET ASSETS
0
15,200
Provisions for pensions and similar obligations
5
1,841
Financial liabilities
2,215
6
1,770
Trade payables
3,134
8
3,048
Other financial assets ¹)
3,441
9
3,060
Other liabilities
1,087
3
850
Tax payables 1)
93
0
84
12,017
31
10,735
31
38,159
1,951
82
0
96
3,792
10
Other provisions
778
Deferred tax liabilities
Financial liabilities
650
3,828
10
0220
3,466
799
614
3,687
43
0221
215
1
119
0
402
1
399
1
9,665
26
110
9,084
26
11
100
1
0225700
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.
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.
Innovation management
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.
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.
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
at the Development Centre in Weissach.
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.
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.
Sustainability rating
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.
122
Performance - Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
123
Financial analysis
Net assets
Financial position
Results of operations
Dec. 31, 2018
in% Dec. 31, 2017
in %
4,929
13
4,646
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
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.
Deferred taxes relating to fair value evaluation of securities and receivables (debt instruments)
recognized on other comprehensive income
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss, before tax
Transferred to profit or loss
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.
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
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.
CO2-neutrality in production
Porsche is aiming to achieve CO2-neutral
production of vehicles. The Taycan will show
the way forward: production of the model at
the Zuffenhausen location will be completely
CO2-neutral.
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.
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
Porsche saves resources in many ways
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.
13
CLIMATE-NEUTRAL TRANSPORT TO SHIPPING PORTS
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.
AUTOMATED SMALL-PARTS STORAGE SYSTEM
120
to conventional small-
parts storage systems.
PRODUCTION IN LEIPZIG
Performance - Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
121
PROCUREMENT
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.
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.
Procurement of production material and
non-production material
Avoid, reduce, offset: keeping CO₂ emissions
in mind at all times
9
Property, plant and equipment
Equity-accounted investments
18
370
1
27,008
71
25,247
72
3,889
10
759
730
Other financial assets
2,292
Other receivables
468
Tax receivables
81
022670
3,051
593
678
1,841
1
429
51
Securities
297
1
62
2
730
1
153
5,903
17
368
1
341
1
Other equity investments
98
0
59
0
Leased assets
3,776
6,928
10
10
Financial services receivables
1,656
5
1,417
4
Other financial assets
8,398
22
8,903
25
125
0
3,455
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss, net of tax
35,019
819 lololololololo
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
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
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
23,491
-16,688
7,155
6,803
- 1,901
- 1,103
Gross profit
Cost of sales
Sales revenue
€ million
previous year.
5
4
Operating profit (EBIT)
€ million
3
2,719
2
1
4,289
4,144
3,877
3,404
0
-1,856
2014
132
Performance - Financial analysis
133
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
136
Consolidated income statement
of Porsche AG for the period 1 January to 31 December 2018
2015 2016 2017 2018
of € 145 million in
comparison with the
- 1,028
1,142
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
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
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
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
Hedging
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)
Transferred to profit or loss (OCI II)
Cash flow hedges (OCI II), before tax
Deferred taxes relating to cash flow hedges (OCI II)
137
Performance - Financial data
-2,157
2,290
- 675
-917
4,289
4,144
3
4
408
395
-92
-68
-56
-429
263
813
-98
4,046
- 1,434
- 1,030
1,427
- 1,234
-7
204
3,118
3,016
3,113
3,016
5
0
4,552
100
amounted to € 4,289
million, an increase
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).
129
2018
in%
20171)
in %
25,784
100
23,491
100
18,629
- 72
-16,688
-71
7,155
28
6,803
29
- 1,901
-7
-1,856
-8
- 1,103
- 4
- 1,028
-4
813
3
SCAN
THIS CHART
Performance - Financial analysis
2015 2016 2017 2018
2014
Performance - Financial analysis
Fair value changes recognized in other comprehensive income
FINANCIAL POSITION
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.
The cash flows from investing activities
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.
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.
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:
€ 1,312 million) made by Porsche Holding
Stuttgart GmbH.
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.
Consolidated revenue at
the Porsche AG Group
for the current reporting
period amounted to
€25,784 million, following
1,142
€ 23,491 million in the
prior year.
Sales revenue
€ million
20
17,205
15
10
5
128
25,784
23,491
22,318
21,533
0
25
Operating profit
5
3
€ 16,688 million), which represents 72 per
cent of sales revenue (prior year: 71 per cent).
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.
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
onwards these are recognized in sales revenue
due to the initial application of IFRS 9. Other
operating expenses declined from € 917 mil-
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
Cost of sales
Gross profit
Distribution expenses
Administrative expenses
Other operating income
Other operating expenses
Operating profit
Financial result
Profit before tax
130
Performance - Financial analysis
131
Operating profit amounted to € 4,289 million,
an increase of € 145 million in comparison
with the previous year.
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).
revenue to € 18,629 million (prior year:
The cost of sales increased in line with
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.
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).
-917
-4
4,289
17
4,144
18
263
1
-98
-1
4,552
18
4,046
-675
17
-
- 1,434
6
-1,030
-4
Profit after tax
3,118
12
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
Income tax income/expense
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
Other comprehensive income, before tax
223
-483
-518
1,136
-664
137
184
- 480
137
143
-41
- 337
96
0
-0
-787
997
Cash flow hedges (OCI II), net of tax
139
0
5
4,066
2,360
1,619
4,066
1,050
-753
-546
354
1,596
- 1,107
2,365
-741
Fair value valuation of securities and receivables (debt instruments) that may be
reclassified to profit or loss
-458
- 12
72
46
3,016
3,118
20171)
34
2018
11 The prior-year figures were restated due to the initial application of new accounting standard
"IFRS 9 - Financial Instruments".
Deferred taxes relating to other comprehensive income
thereof profit attributable to shareholders
Total comprehensive income
- 152
Other comprehensive income, net of tax
Performance - Financial data
-22
50
thereof profit attributable to non-controlling interests
°s
3
1,771
-235
- 283
-235
68
0
68
-235
68
53
34
0
0
0
Change in inventories
Other non-cash expense/income
Depreciation, amortization and impairment losses
Gain/loss on disposal of non-current assets
Income taxes paid
4,552
2,834
2,960
Cash and cash equivalents at beginning of period
Profit before tax
4,046
Change in receivables (excluding financial services)
- 1,093
Change in pension provisions
Change in other provisions
Change in leased assets
Change in financial services receivables
- 1,531
2,567
2,276
46
25
Share of profit or loss of equity-accounted investments
20171)
Change in liabilities (excluding financial liabilities)
2018
3,441
of Porsche AG for the period 1 January to 31 December 2018
9,665
9,084
96
82
1,951
1,841
2,215
1,770
3,134
3,048
4
€ million
3,060
850
93
84
12,017
10,735
1) The prior-year figures were restated.
38,159
35,019
Performance - Financial data
141
Consolidated statement of cash flows
1,087
4
3,845
83
-8
10
57
-237
1
Change in loans and time deposits
- 111
-91
Cash flows from investing activities
Capital contributions
Profit transfer and dividends
Proceeds from issuance of bonds
Repayment of bonds
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
Cash and cash equivalents at end of period
-3,566
-3,140
1,208
1,312
- 2,157
-2,371
2,727
-71
-214
- 1,337
-1,762
- 851
-651
505
-577
504
371
326
81
349
940
- 1,230
- 239
-199
Cash flows from operating activities
399
4,069
Investments in intangible assets (excluding capitalized development costs),
and property, plant and equipment
Additions to capitalized development costs
Change in equity investments
Cash received from disposal of intangible assets and property, plant and equipment
Change in investments in securities
- 2,093
1,064
402
650
Tax payables ¹)
Deferred tax assets
Non-current assets
Inventories
Trade receivables
Financial services receivables
125
153
730
370
27,008
25,247
3,889
3,051
759
593
730
678
Other financial assets
2,292
1,841
Other receivables
468
429
Other receivables
8,903
8,398
1,417
140
Consolidated statement of financial position
of Porsche AG as of 31 December 2018
€ million
31 Dec. 2018
31 Dec. 2017
Assets
Intangible assets
Property, plant and equipment
Leased assets
Equity-accounted investments
Other equity investments
Tax receivables
4,929
6,928
5,903
3,776
3,455
368
341
98
59
Financial services receivables
Other financial assets
1,656
4,646
Current liabilities
81
Securities
16,477
15,200
Provisions for pensions and similar obligations
3,792
3,466
Other provisions
778
799
Deferred tax liabilities
2,513
614
Financial liabilities
3,828
3,687
Other financial liabilities
215
119
Other liabilities
Non-current liabilities
Provisions for taxes
Other provisions
Financial liabilities
Trade payables
Other financial assets ¹)
Other liabilities
Equity
0
6
Non-controlling interests
297
62
Cash, cash equivalents and time deposits
2,635
3,067
Current assets
11,151
9,772
38,159
35,019
Equity and Liabilities
51
Subscribed capital
45
11,453
45
10,245
Retained earnings 1
Other reserves 1)
4,876
97
4,023
887
Equity before non-controlling interests
16,471
15,200
Capital reserves
- 2,422
3,410
38
-606
Disposal of equity instruments
Capital increases/ decreases
Profit transfer and dividends payment
Other changes
As of 31 December 2018
1,208
1,208
-2,290
-2,290
0
1
45
11,453
4,876
75
313
-291
16,477
144
Performance - Financial data
145
146
Value added statement
2,365
of Porsche AG for the period 1 January to 31 December 2018
5
-337
10,245
4,019
831
46
0
0
15,193
Profit after tax
3,113
5
3,118
Other comprehensive income, net of tax
34
68
-518
-337
0
0
-753
Total comprehensive income
3,147
68
-518
0
Source of funds in € million
Sales revenue
Other income
Cost of materials
2,370
35.1%
to employees (wages, salaries, benefits)
3,613 43.3%
3,200 44.5%
2,875
42.5%
to the state (taxes, duties)
1,473
17.7%
1,298
18.1%
1,106
16.4%
to creditors (interest expense)
123
1.5%
87
1.2%
135
2.0%
to the Company (reserves)
842
30.0%
2,157
2,290 27.4%
2016
Depreciation and amortisation
Other upfront expenditures
Value added
2018
20171)
2016
25,784
823
23,491
942
22,318
1,231
- 15,658
-13,665
-12,623
45
-2,567
-2,081
-41
- 1,301
-2,089
8,341
7,191
6,756
Appropriation of funds in € million
to shareholders (profit transfer)
2018
20171)
-2,276
Balance at 1 Jan. 2018
0
46
hedging (OCI II)
Equity and debt
instruments
Other reserves
interests
Total equity
Unadjusted balance at 1 Jan. 2017
Changes in accounting policy to reflect IFRS 9
Balance at 1 Jan. 2017
Profit after tax
Other comprehensive income, net of tax
Total comprehensive income
Disposal of equity instruments
Capital increases/ decreases
45
8,933
3,064
242
-305
0
0
1
11,980
50
Cash flow hedges Deferred costs of
(OCI I)
Currency
translation
Retained earnings
Capital reserves
-25
-744
2
-59
-327
185
2,635
2,960
Cash and cash equivalents at end of period
2,635
2,960
-50
Securities, loans and time deposits
Gross liquidity
425
3,385
1) The prior-year figures were restated due to the initial application of new accounting standard
"IFRS 9 - Financial Instruments".
142
Performance - Financial data
143
€ million
Consolidated statement of changes in equity
of Porsche AG for the period 1 January to 31 December 2018
Hedging
Subscribed
capital
775
-2,173
45
3,114
-2,158
Other changes
As of 31 December 2017
45
10,245
4,023
831
46
0
0
15,200
Unadjusted balance at 1 Jan. 2018
45
10,245
4,096
804
3
0
0
15,200
Changes in accounting policy to reflect IFRS 9
-77
27
-2,157
Profit transfer and dividends payment
1,312
1,312
242
-305
-50
0
0
1
11,980
3,016
0
3,016
50
8,933
-235
96
0
0
1,050
3,066
-235
1,136
96
0
0
4,066
1,136
Equity-accounted Non-controlling
investments
40.42
10.1%
2016
Porsche AG
Porsche Leipzig GmbH
12.9%
0.6%
12.7%
12.2%
0.7%
0.8%
1) We do not report on minorities, as we are not permitted to collect this data due to personality rights.
Porsche AG
Porsche Leipzig GmbH
5.8
5.9
5.1
5.5
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
1) Of this, external donations totalling 22 million euros in foundation assets for
the Ferry Porsche Foundation, which was established in 2018.
Performance - Key figures
20181)
2017
2016
Approx. 27.5
Approx. 4.8
Approx. 5.0
155
2017
2018
2016
2017
5,317
24,460
2,872
17,363
Number of accidents, lost days and fatalities 1)
2018
2017
2016
Accidents 2)
202
177
171
28,220
25,911
Further information
18,312
3,866
Lost days 3)
2,578
1,923
Fatalities
0
1,708
0
1,957
1
☐ s
SCAN
THIS CHART
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).
Injury rates¹)
2018
4,105
The Supervisory Board
Emission and consumption information
GRI Content Index
Departmental Manager of Human Resources, Management and Production
Wolfgang von Dühren*
Head of Sales Planning at Dr. Ing. h.c. F. Porsche AG
Antonio Girone*
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
Peter Schulz*¹)
Hansjörg Schmierer*
Jordana Vogiatzi*
Press officer for the IG Metall trade union - Stuttgart Administrative Office
Axel Weyland*
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
Manager responsible for members and finances of the IG Metall trade union, Stuttgart
5,944
26,381
Member of the Board of Management of Porsche Holding GmbH
with responsibility for "Integrity and Legal"
About this report
Porsche AG Group - Brief overview
The Supervisory Board
of Dr. Ing. h.c. F. Porsche AG
on 31 December 2018
Dr Wolfgang Porsche
Diplom-Kaufmann
Chairman
Uwe Hück*
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
Dr Hans-Peter Schützinger
Investment management
Hans Dieter Pötsch
Diplom-Wirtschaftsingenieur
Chairman of the Executive Board of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Gunnar Kilian
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
Hans-Peter Porsche
Engineer
SCAN
THIS CHART
2016
2017
47%
1) Investments made at the Stuttgart-Zuffenhausen, Weissach and Leipzig
sites are factored into the calculation.
Performance - Key figures
153
154
Key figures for personnel and social matters
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
Total workforce 1)
Porsche Group (including subsidiaries)
of which Porsche AG 2)
of which Porsche Leipzig GmbH 2)
20.48
Region: Germany
Region: North America
Region: Asia
Other regions (Australia, Latin America)
1) As of 2017, this figure relates to the entire Porsche AG Group.
2) The specified employee figures are based on reports by region
(Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
Employee structure 1)
Employees by gender
Female
Male
Employees by type of employment 2)
Employees subject to wage agreements
Employees exempt from wage agreements and executive employees
Region: Europe (excluding Germany)
1) As of 2017, this figure relates to the entire Porsche AG Group.
66%
64%
100%
39.09
100%
43.57
100%
Waste disposal
4.63
11%
2.84
7%
4.36
10%
Emissions control
25.72
7.12
6.26
16%
10.89
25%
Remedy costs
2.94
7%
4.27
11%
7.84
18%
Prevention
25.73
18%
159
2) Due to the equal payment and attractive framework conditions, the number of temporary
employees has not been reported separately.
2018
868
N/A
279
Total number of participants
40,920
19,909
21,798
259
N/A
Female
7,809
3,458
3,461
974
Male
16,451
18,337
Distribution of participants by employee category
Employees subject to wage agreements
85.4%
93.1%
90.7%
Employees exempt from wage agreements and executive employees
14.6%
6.9%
9.3%
1) Increase in the participant numbers due to the launch of a digital learning platform,
and the intensification of digital learning modules.
2018
33,111
Proportion of foreign employees 1)
N/A
814
2017
2016
Employee turnover 1) 2)
2018
2017
2016
1,30%
1,20%
0,60%
1) As of 2017, this figure relates to the entire Porsche AG Group.
32,325
19,032
29,777
17,549
741
27,612
16,241
4,252
4,148
3,994
28,764
26,506
N/A
1,494
1,403
N/A
Training programme participants
2018 ¹)
2017
2016
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.
3,008
2016
2017
31,648
33,820
36,236
Vehicles
911
2016
2017
2018
239,618
255,683
268,691
Vehicles
Total
718 Boxster/Cayman
1) Suppliers are considered to be local if they are based in the EU.
Zuffenhausen and Leipzig are considered the main business sites.
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%
Based outside the EU
4.2%
2016
1) Based on the creditor's billing address.
Vehicles
26,427
150
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.
(GRI 102-45)
Basis of consolidation
240
Vehicles
14,218
37,605
35,493
Vehicles
1) Pre-production vehicles.
Taycan 1)
Panamera
23,658
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
100%
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Based in the EU
Suppliers of non-production materials
911
Vehicles
Total
2016
2017
2018
Deliveries
The key figures concerning suppliers relate to Porsche AG.
The key figures concerning deliveries and production relate to the Porsche Group
(including subsidiaries).
Key economic figures
Key figures for personnel and social matters
Key figures for environment and energy
Key economic figures
Vehicles
Key figures
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%
7,191
100%
8,341
4.0%
270
6.2%
449
147
98.1%
256,255
35,573
918 Spyder
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
246,375
Vehicles
95,642
97,202
86,031
Vehicles
Macan
23,620
25,114
24,750
Vehicles
718 Boxster/Cayman
237,778
32,365
44
32,197
7
Vehicles
Cayenne
Total 1)
Performance-Key figures
152
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
2016
2017
2018
Energy consumption in KWh per vehicle 1)
1) Indirect energy consumption comprises electrical energy, district heating,
CHP plants and PV arrays.
63,350
11,436
12,114
2) The emissions indicated relate only to business trips, i.e. made by train (Porsche AG only),
plane and rental car.
Other sites
59,418
64,424
Development site
296,873
233,523
339,200
268,346
353,726
277,188
Production sites
Total
2016
2017
2018
Indirect energy consumption according to primary energy sources in MWh ¹)
64,603
1,385,573
N/A
N/A
3) The NOx emissions shown here refer exclusively to production processes,
and not to Porsche vehicles.
Water consumption (drinking water)
Volume of waste water
2018
Investments in environmental protection € millions
2,485
SCAN
THIS CHART
1,859
1,690
1,581
19,312
21,088
21,573
21,171
22,788
23,154
Fresh water and waste water in m³
2016
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
20171)
151
293,623
217,104
1,649
1,552,452
6,342
Indirect GHG emissions in t CO2 equivalent (Scope 2)
53,928
57,117
56,862
Direct GHG emissions in t CO2 equivalent (Scope 1)
34,184
3,213
3,155
Other sites
N/A
14,752
14,500
6,405
Development site
45,557
45,548
Production sites
164,159
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
129,975
304,111
225,218
62,556
3,054
1,540,403
110,231
58.491
61,926
306,692
229,354
1) The direct energy consumption is comprised of gas, combustible gas for manufacturing processes,
heating oil, special energy products and fuel.
Fuel (in litres)
Other sites
Development site
Production sites
Total
0.3
0.28
116.93
125.29
0.11
0.12
Weight of dust emissions
Other indirect GHG emissions (Scope 3) 1) 2)
124.33
2016
0.41
0.41
SOx emissions
2017
2018
Direct energy consumption according to primary energy sources in MWh 1)
45.01
39.25
38.96
NOx emissions 3)
49,023
54,338
Weight of volatile organic compounds (VOC)
710
→Index
Papier aus verantwor
tungsvollen Quellen
7.2
12.3
450
331
911 Targa 4 GTS PDK
207
9.1
7.2
12.3
450
331
911 Carrera 4 GTS Cabriolet PDK
203
8.9
7.2
11.7
450
331
911 Carrera 4 GTS PDK
**Overall system performance
202
9.1
8.8
207
Panamera GTS
GRI
GRI Content Index
162
161
Performance -Further information
242
10.6
8.2
14.6
460
338
Panamera GTS Sport Turismo
Panamera Sport Turismo
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
235
10.3
|00|
7.8
14.6
460
338
Panamera
7.5
11.2
450
74
74
16.0
3.3
16.0
3.3
66-64*
462 2.9-2.8* 16.2-16.1*
462 2.7-2.6* 16.1-16.0* 62-61*
62-60*
462 2.7-2.6* 16.1-16.0*
222333
33
680
500
Panamera Turbo S E-Hybrid Sport Turismo
206
9.0
7.8
11.1
450
331
3.3
18.1
76
331
331
911 Carrera GTS Cabriolet PDK
*Range depending on the tyre set used
201
8.8
7.4
11.2
450
331
911 Carrera GTS PDK
Materiality
Disclosures
Porsche AG
207
7.8
11.1
450
331
911 Carrera 4S Cabriolet
208
9.1
7.6
11.6
450
9.0
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
GRI standard
Disclosure
150
→ Text
44-45, 48-49
→ Text
→ Text
44-45
44-45
102-56 External assurance
102-55 GRI content index
102-54 Claims of reporting in accordance with the GRI Standards
102-53 Contact point for questions regarding the report
102-52 Reporting cycle
102-51 Date of most recent report
102-50 Reporting period
102-49 Changes in reporting
102-48 Restatements of information
102-47 List of material topics
102-45 Entities included in the consolidated financial statements
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.
→ Index
41, 44, 46, 48-49,165
→ Text
48-49
Responsibility in the supply chain
418-1 Substantiated complaints concerning breaches of customer
privacy and losses of customer data
GRI 418: Customer Privacy (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
201-1 Direct economic value generated and distributed
201-4 Financial assistance received from government
GRI 103:
Management Approach (2016)
Long-term customer relations
GRI 201:
Economic Performance (2016)
GRI 103:
Management Approach (2016)
Long-term economic stability
→ Index
Disclosure
165
162-165
162
168
165
165
165
165
48, 165
→ Text
Key topics
911 Carrera S Cabriolet
→ Text
40-43, 50-53, 57-61
6-7, 158-159
44-45
102-11 Precautionary principle or approach
102-10 Significant changes to the organisation and its supply chain
102-9 Supply chain
102-8 Information on employees and other workers
102-7 Scale of the organisation
102-6 Markets served
102-5 Ownership and legal form
102-4 Location of operations
102-3 Location of headquarters
102-2 Activities, brands, products, and services
102-1 Name of the organisation
General Disclosures (2016)
GRI 102:
General Disclosures
Foundation (2016)
GRI 101:
Omission
Online version
Printed report
Service
Feb 2019
102-12 External initiatives
102-13 Membership of associations
102-14 Statement from senior decision-maker
102-16 Values, principles, standards, and norms of behavior
6-7
→Text
→ Index
10, 11, 14, 17, 23, 24, 27, 44, 48,
50-52, 57, 66, 68–69, 76–87,
108-111, 114, 123, 162-165
→ Text
→ Index
4, 10-27, 36, 165
58-61,64-74
→ Index/Text
51-52, 122-123, 151
→ Key figures
FSC*
35, 58-61, 64-65, 75, 154-155
28-35, 65, 125-145, 150, 154
30-34
→ Index
168
30-34
→Text
→ Index/Text
7,28,96-105, 160-161
168
102-41 Collective bargaining agreements
102-40 List of stakeholder groups
102-18 Governance structure
→ Key figures
GRI 103:
Management Approach (2016)
GRI 204:
911 Carrera 4S
500
220
718 Boxster T
10.8
300
220
718 Boxster PDK
11.3
300
220
718 Boxster
12.0
365
269
718 Cayman GTS PDK
12.8
365
269
718 Cayman GTS
11.8
350
257
300
718 Cayman S PDK
11.3
220
6.2
223215-532321515
666671916666NON6
12.0
365
269
718 Boxster GTS PDK
12.8
365
269
718 Boxster GTS
11.8
350
257
718 Boxster S PDK
12.7
350
257
718 Boxster S
10.8
300
718 Boxster T PDK
12.7
350
257
Fuel con-
Fuel con-
Power
Power
output
Model
(extra-urban) (combined) (combined)
[1/100 km] [1/100 km] [g/km]
[1/100 km]
(urban)
emissions
sumption
sumption
sumption
CO₂
Fuel con-
Fuel con-
Fuel con-
Power
[hp]
Power
output
[kW]
Model
Emission and consumption information
160
Fuel con-
[hp]
sumption
sumption
718 Cayman S
10.8
300
220
718 Cayman T PDK
11.3
300
220
718 Cayman T
10.8
8.1
300
11.3
300
220
718 Cayman PDK
718 Cayman
718
CO₂
sumption emissions
(extra-urban) (combined) (combined)
[1/100 km] [l/100 km] [g/km]
[I/100 km]
(urban)
[kW]
220
186
Macan
Macan
6.2
6.5
210
9.2
7.1
[g/km]
[1/100 km] 100 km]
combined
(combined) [kWh/
[kW]**
181
7.9
6.2
emissions
sumption
sumption
[hp]**
output
187
8.2
6.3
Power con- CO₂-
8.5
194
7.1
9.2
Panamera Turbo S E-Hybrid Executive
205
8.9
7.9
10.7
450
331
680
500
Panamera Turbo S E-Hybrid
Fuel con-
911 Carrera S
340
Panamera 4 E-Hybrid Sport Turismo
340
Panamera 4 E-Hybrid Executive
195
8.5
6.5
340
Panamera 4 E-Hybrid
210
911
680
Power
Model
7.9
6.2
186
8.1
6.3
204
8.9
185
8.1
7.5
7.3
35
NN
9.5
11.3
354
260
245
180
Macan S
180
7.9
180
Cayenne
7.1
9.2
180
7.9
6.2
Plug-in hybrids
186
8.1
6.3
194
8.5
6.5
Power
210
62
9.2
7.1
8.5
6.5
9.4-8.9* 11.4-11.3* 261-258*
550 15.3-14.8*
404
Cayenne Turbo
210
193
Procurement Practices (2016)
GRI 308: Supplier Environmental
Assessment (2016)
102-46 Defining report content and topic boundaries
Forced or Compulsory Labor (2016)
79,111
Units
Cayenne
97,177
98,763
93,953
Units
Macan
24,882
26,427
23,658
Units
718 Boxster/Cayman
31,648
33,820
36,236
Units
911
239,618
255,683
268,691
59,068
71,693
Panamera
Taycan ")
Total assets
22,318
23,491
25,784
€ million
Sales revenue
Financials
2,875
27,612
29,777
3,200
Units
3,613
Personnel expenses
32,325
number
Employees 2)
240
Units
14,218
37,605
35,493
Units
€ million
Equity
Production
27,942
256,255
Units
Deliveries
2016
2017
2018
Brief overview
Porsche AG Group
166
165
Performance -Further information
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.
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.
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".
Report contents and period
(GRI 102-46, 102-48, 102-50,
102-51, 102-52)
About this report
not available
(For details
see p. 153)
Information
(For details
see p. 153)
→ Index/Text
58-61,73-74
911
Units
35,573
918 Spyder
38,443
Units
Panamera
70,867
GRI 408: Child Labor (2016)
GRI 409:
71,458
Units
Cayenne
95,642
97,202
15,240
86,031
Macan
23,620
25,114
24,750
Units
718 Boxster/Cayman
44
237,778
32,365
246,375
32,197
7
Units
Units
58-61, 155 Index/Key figures
€ million
35,019
Markus Rothermel, Press Officer for Sports Communications
Jörg Walz, Press Officer for Production, Logistics, Procurement and Sustainability
Nadescha Vornehm, Press Officer for Sales and Marketing
Matthias Rauter, Press Officer for Human Resources and Social Affairs
Tanja Deutschenbaur, Press Officer for Finance and IT
Frank Scholtys, Director Corporate Communications
Maximilian Steiner, Coordinator for Sustainability and Stakeholder Management
Daniela Rathe, Director Politics and External Affairs
Contact persons
Sabine Schröder, Director Corporate Publishing
Dr Josef Arweck, Vice President Communications
D-70435 Stuttgart
Tel.: +49 711 911-0
Porscheplatz 1
Dr. Ing. h.c. F. Porsche AG
Publisher
Legal notice
167
SCAN
THIS PAGE
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 160-161.
Performance -Further information
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
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
MIX
www.c.org
FSC
www.newsroom.porsche.com/reports
Fedrigoni Symbol Matt Plus
Paper
Druckstudio GmbH
Printing
C3 Creative Code and Content GmbH
Interactive key performance indicator tool
Porsche Newsroom provides more information and an interactive comparison of current financial and volume data.
Storming GmbH
Meiré und Meiré
Art direction, editorial and digital design
Meiré und Meiré
Rolf Antrecht
Conceptualized by
Jan Waschek, Corporate Publishing
Alexandra Schubert, Corporate Publishing
Coordination and text
Mayk Wienkötter, Press Officer for Electromobility, Future Technologies and Connected Car
Hermann-Josef Stappen, Press Officer for Technology
Porsche Newsroom App
38,159
of new accounting standard "IFRS 9 - Financial Instruments".
3) Relates to investments in intangible assets and property, plant and equipment.
Depreciation, amortization and impairment losses
12,623
13,665
15,658
€ million
Cost of materials
2,666
3,099
3,157
€ million
Capital expenditure 3)
12,841
14,404
16,099
€ million
Fixed assets
11,980
15,200
16,477
€ million
32,235
€ million
2,567
2,276
2,081
2) As of 31 December.
1) Pre-production vehicles.
2,640
3,016
3,118
€ million
Profit after tax4)
3,697
4,046
4,552
4) The prior-year figures (FY 2017) were restated due to the initial application
€ million
3,877
4,144
4,289
€ million
Operating result (EBIT)
3,864
4,069
3,845
€ million
Cash flows from operating activities
Profit before tax 4)
→ Index
63,913
44, 48-49, 58-61
54
→ Text
44, 48-49, 54-56
→ Text
44, 48-49, 50-53
→ Index
→ Index
→ Key figures
52-53
→ Index
→ Text
44, 48-49, 50-53
→ Key figures
151
→ Index
→ Index/Text
51-52, 123
→ Text
51-52, 123
→ Text/Key figures
51-52, 123,151
→ Text
→ Index/Key figures
44, 48-49, 54-56
Information
→ Key figures
122, 151
→ Text
44, 48-49, 54-56
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
GRI 301: Materials (2016)
Management Approach (2016)
GRI 103:
Material and sustainable materials
Key topics
Omission
Online version
Printed report
Disclosure
Key topics
164
163
(For details
see p. 153)
→ Key figures
121, 153
not available
→ Text
151
→ Text
see online index)
GRI 103:
Digital transformation
Socioeconomic Compliance (2016)
307-1 Non-compliance with environmental laws and regulations
419-1 Non-compliance with laws and regulations in the social
and economic area
206-1 Legal actions for anti-competitive behavior, anti-trust,
and monopoly practices
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
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
409-1 Operations and suppliers at significant risk for incidents of
forced or compulsory labor
408-1 Operations and suppliers at significant risk for incidents of
child labor
308-1 New suppliers that were screened using environmental criteria
204-1 Proportion of spending on local suppliers
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
Environmental Compliance (2016)
GRI 419:
Anti-competitive Behavior (2016)
GRI 307:
GRI 206:
GRI 205: Anti-corruption (2016)
GRI 103:
Management Approach (2016)
Compliance
Supplier Social Assessment (2016)
Human Rights Assessment (2016)
GRI 414:
GRI 412:
Management Approach (2016)
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:
Restricted due to
obligation to main-
tain confidentiality
(for further details
→ Index
44, 48-49, 50-53
→ Text
44, 48-49, 50-53
→ Index
35,126-147,155, 167
→ Text
44, 48-49, 50-53
Omission
New mobility concepts
Online version
Performance -Further information
305-3 Other indirect GHG emissions (Scope 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
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
GRI 305: Emissions (2016)
GRI 103:
Management Approach (2016)
Fuel consumption and
vehicle emissions
Customer Health and Safety (2016)
GRI 416:
Management Approach (2016)
Printed report
GRI 103:
→ Index/Text
Energy and emissions
57, 153
57, 153
→ Text
44, 48-49, 57
→ Key figures
153
→ Key figures
→ Key figures
→ Key figures
121, 153
not available
Information
→ Key figures
119-121, 153
Index/Key figures
→ Key figures
152
153
→ Key figures
116-121, 152
→ Text
44, 48-49, 57
→ Text
→ Key figures
Index/Key figures
57, 153
→ Key figures
Index
44, 48-49,57
Omission
Online version
Printed report
→ Index
Management Approach (2016)
44,60
→ Text
44, 48-49, 58-61
→ Text
64-75
44, 48-49, 54-56
→ Text/Key figures
→ Text
44, 48-49, 58-61
→ Key figures
→ Text/Key figures
58-61, 64-75, 154-155
→ Text
44, 48-49, 58-61
→ Key figures
121, 153
→ Text
58-61,64-75,155
GRI 403: Occupational Health
and Safety (2016)
→ Index/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
403-1 Workers representation formal joint management-worker
health and safety committees
GRI 103:
Management Approach (2016)
Environmentally compatible logistics
GRI 306: Effluents and Waste (2016) 306-2 Waste by type and disposal method
306-1 Water discharge by quality and destination
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
GRI 303: Water (2016)
Management Approach (2016)
GRI 103:
during production
Resource consumption
GRI 305: Emissions (2016)
305-6 Emissions of ozone-depleting substances (ODS)
305-7 Nitrogen oxides (NOx), sulfur oxides (SOX) and other
significant air emissions
305-3 Other indirect GHG emissions (Scope 3)
305-2 Energy indirect GHG emissions (Scope 2)
305-1 Direct GHG emissions (Scope 1)
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
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 305: Emissions (2016)
GRI 302: Energy (2016)
GRI 103:
during production
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
305-4 GHG emissions intensity
306-3 Significant spills
Management Approach (2016)
305-3 Other indirect GHG emissions (Scope 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
Occupational health and safety
of association and collective bargaining may be at risk
402-1 Minimum notice periods regarding operational changes
407-1 Operations and suppliers in which the right to freedom
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 407: Freedom of Association
and Collective Bargaining
GRI 402: Labor/Management
Relations (2016)
Management Approach (2016)
GRI 103:
Corporate co-determination
Disclosure
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
Attractiveness as an employer
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:
Management Approach (2016)
GRI 401: Employment (2016)
GRI 103:
Management Approach (2016)
GRI 103:
Management Approach (2016)
GRI 404:
Staff development
Training and Education (2016)
99 Employees, Society,
190 Further information
Key figures for personnel and
social matters
Key figures for environment
and energy
Key economic figures
182 Key figures
Consolidated statement of changes in equity
Value added statement
Consolidated statement of financial position
Consolidated statement of cash flows
comprehensive income
Net assets
Financial position
Results of operations
Consolidated income statement
168 Financial data
Communications
Sports
129 Research and development
Vehicles
Technology
Employees
Society
The Supervisory Board
Emission and consumption information
GRI Content Index
Sports, Communications
Consolidated statement of
158 Financial analysis
Detlev von Platen
202 Legal notice
Human Resources
Innovative Mobility
Reliable Partner
Go to Zero
Andreas Haffner
Anders,
Uwe-Karsten Städter
Procurement
Eun Hätten
of the Executive Board
Finance and IT
Deputy Chairman
Lutz Meschke
вишит
раг
Sales and Marketing
Deller
Dotte van Toh Shives Dune
Albrecht Reimold
Production and Logistics
рем
Michael Steiner
Research and Development
Michael fleines
Letter from the Executive Board of Porsche AG
Porsche AG Group - Brief overview
Independent Practitioner's Report
85 Action areas
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 2019, which will be available on the
www.volkswagen.com website in German and
65 Sustainability management
Sustainability strategy
Porsche Sustainability Index
Sustainability organisation
Sustainable Development Goals
Reporting standard and assurance
This documentation represents the fourth
time that Dr. Ing. h.c. F. Porsche AG has pub-
lished the Annual and Sustainability Report
in combined format. The company published
its first report in this format for the financial
year 2016 on 17 March 2017. The report is
published annually. This report covers the
period from 1 January 2019 to 31 December
2019. Information dating from before this
period is also included for completeness.
Unless otherwise specified, the reporting
date is 31 December 2019. The editorial
deadline was in February 2020. Unless other-
wise 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 as a
company and its sustainability work. Manage-
ment approaches to major topics in this
report are contained in the section entitled
"Action areas".
→ GRI 102-46, 102-48
Report contents and period
Responsible interaction with people, the
environment and wider society right along the
value-added chain - from suppliers to the
recycling of products - is of fundamental
importance to Porsche and is firmly rooted in
its core. The company also ensured minimal
ecological impact with the design of the
current Business and Sustainability Report:
not only is the cover partly composed of
residual materials from organic products
featured in food manufacturing and other
processes, the paper is FSC-certified and the
CO2 emissions generated during printing
have been reduced or offset.
Report design
About this report
T
Π
OUTSIDE
NFC YUELLESS
RAPIAL
OFOR
R-
2019
of Porsche AG
Annual and Sustainability Report
Pioneering spirit.
Oliver Blume
→ GRI 102-49
This report was prepared in accordance with
the Core option of the GRI Standards. The
GRI Content Index at the end of the report lists
the information that has been reported on
and the locations where this can be found 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 information specified for
GRI 102-40 to 102-49 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 consolidation and
inspection of the information and data con-
tained therein, a business audit pursuant to
ISEA 3000 (Revised) was conducted to obtain
limited assurance against the relevant criteria
and requirements of the GRI Standards. The
information reviewed is marked accordingly in
the report (V). The statement from the inde-
pendent auditor is featured on page 201.
English from 30 April 2020.
Pioneering spirit.
Procurement
Production
139 Sales, Production, Procurement
Sales
Business performance
Outlook
09 Important events
Letter from the Executive Board of Porsche AG
07
FSC C014405
responsible sources
77 Stakeholder management
External stakeholder dialogue
Internal stakeholder dialogue
Stakeholder survey and materiality
Paper from
FSC
natureOffice.com | DE-137-711254
print production
carbon neutral
Ferry Porsche, 1969
"If one does not fail at times,
then one has not challenged
himself."
Oliver Blume, 2019
to remain Porsche because it
has always adapted."
"Porsche has only been able
MIX
Chairman of the
Executive Board
MANFRED BRÄUNL
The year 2019 marked the dawning of a new era for Porsche.
At the start of September we unveiled the Taycan, our first
fully electric sports car and the result of many years of
strategic development work. We created around 2,000 new
jobs for our sixth model and launched a comprehensive
training offensive. We have invested in our Zuffenhausen
site and commissioned a new production line, creating
a factory within a factory that is consistently geared
towards sustainability.
50 Years of the 917" ran from 14 May to
the Porsche Museum. "Colours of Speed -
ever made to its original condition - just as it
was when first unveiled. When restoring sports
cars from the company's historic collection,
the museum always places great importance
on retaining original materials and accounting
for the relevant history of its exhibits. Add-
itional events to mark this occasion included
a comprehensive special exhibition at
The Porsche 917 marked its golden anniver-
sary in 2019, 50 years after this most famous
racing car of all time debuted at the Geneva
Motor Show on 12 March 1969. Porsche
enjoyed great success with the 917, winning,
amongst others, the 1970 and 1971 24 Hours
of Le Mans. The Porsche Museum celebrated
this landmark by restoring the first 917
50 years of the Porsche 917
16
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Important events
New CEO for Porsche Middle East
Manfred Bräunl was appointed CEO of Porsche
Middle East and Africa Free Zone Establish-
ment (FZE) effective 1 March 2019. Previously,
Bräunl spent five years as Vice President
Marketing at Porsche China Motors. Addition-
ally, he was the Global Head of Marketing at
Maserati in Modena, Italy, and previously occu-
pied senior management positions at BMW.
Bräunl's predecessor Deesch Papke assumed
the position of Group Managing Director at
Audi Volkswagen Middle East (AVME). Papke
had managed the Dubai-based subsidiary
since 2015 as well as between 2005
and 2010.
In February 2019, the Supervisory Board of
Porsche AG decided to manufacture the
next generation of the Macan as a fully elec-
tric series. This will be the first all-electric
compact SUV from Porsche and is due to roll
off the assembly line at the start of the 2020s.
The development represents a further expan-
sion of the Porsche range in the field of
electromobility following the Taycan and
Taycan Cross Turismo.
Get electrified: the next Macan generation
LPL 1905
DEVELOPMENT DATA FOR PORSCHE MISSION E CROSS TURISMO MADE AVAILABLE TO COMPETITION ENTRANTS
15
THE PORSCHE MACAN IS A TRUE LEIPZIG PRODUCT
To mark the Mobile World Congress (MWC)
in Barcelona, Porsche invited developers from
around the world to work on future digital
mobility solutions. The second edition of the
"Porsche Next Ol" developer competition began
on 26 February 2019 in the form of another
open innovation competition for digital
development organised in collaboration with
Berlin-based tech start-up "High Mobility".
Participants were able to work with the devel-
opment data of the Porsche Mission E Cross
Turismo electric study. They were invited to
pitch applications relating to sports cars of
the future. Porsche is particularly seeking apps
that are relevant for customers in the three
phases of the driving experience: home,
driving and arrival. Submissions may involve
such aspects as the connected home, the
charging process, on-the-move productivity
and smooth arrival at the airport.
Developer competition with Mission E
Cross Turismo data
The "Porsche inFlow" launched by Porsche and
Munich-based mobility and fintech company
"Cluno" in late February 2019 offers exclusive
and flexible use of various Porsche models
in Germany at a monthly package price. All
processing steps, from booking and contract
conclusion through to car management, are
performed digitally using the Cluno app. This
represents a further expansion of Porsche's
portfolio of innovative mobility concepts.
Flexible mobility solution: "Porsche inFlow"
15 September 2019 and featured a total of
14 exhibits, including 10 917s boasting a
combined 5,507 kW (7,490 PS).
The electrifying Porsche Taycan
Even before its world premiere in September
2019, the Porsche Taycan was already in great
demand. In an announcement at the Geneva
Motor Show, Porsche revealed that the car had
attracted over 20,000 serious prospective
customers by March 2019. This number had
risen to 30,000 by the time of the IAA in
September, resulting in 10,000 purchase
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Dear Reader,
Cayenne
Cepend
CALVONEET
9,700-euro bonus
19
LEIPZIG FACTORY
Porsche is investing more
than 600 million euros to up-
grade its factory in Leipzig.
This will allow the company
to set an important course
for the future of its Saxony
site and the production of
upcoming models.
Testing autonomous driving in the workshop
Porsche is testing autonomous driving for
workshops, and for this project, the sports car
manufacturer is working with the start-up
"Kopernikus Automotive" to install a test field
on the company's premises in Ludwigsburg.
The fresh-faced outfit from Berlin specialises
in technology for self-driven cars. The aim of
the joint project is to enable cars to drive from
their parking space to the lifting platform
and back again in a fully autonomous process.
This should enable staff to save time by auto-
matically manoeuvring the sports cars to the
correct position in the workshop using a tablet.
This test project, which is part of a collabor-
ation within the "Startup Autobahn" innovation
platform, has been initiated by the Silicon
Valley technology centre Plug and Play for the
Stuttgart location. Porsche has partnered
with the platform since 2017 for the purpose
of networking with innovative start-ups from
around the world.
Laying new foundations in Leipzig
The factory's fifth expansion project is now
underway: Porsche is investing more than
600 million euros to upgrade its factory in
Leipzig, with the foundation stone for a new
body shop boasting a total area of 75,500
square metres having been laid on 12 March
2019. This will allow the company to set an
important course for the future of its Saxony
site and the production of upcoming models.
The new generation of the Macan, which
will be a fully electric series, is set to be manu-
factured there from the start of the 2020s.
the world premiere of the Cayenne Coupé.
Boasting particularly dynamic contours and
new technical details, it has a very athletic
appearance. Highlights include a sharper design
with a totally unique rear end, an adaptive rear
spoiler, a rear bench with the characteristics
of two individual seats and two roof concepts:
the standard panoramic fixed glass roof and
the optional carbon roof. The roof line falls
away much more steeply to the rear, making
this car appear even more dynamic and
positioning it as the sportiest-looking model
in the segment.
Porsche extended the third generation of its
successful SUV range in late March 2019 with
Cayenne Coupé extends SUV line
The unveiling of the first Porsche 911 GT3 at
the Geneva Motor Show in March 1999 was
the start of a new era for discerning sports car
drivers. Like no other 911, the GT3 embodied
the hallmarks of Porsche Motorsport. Devel-
oped by two-time World Rally Championship
winner Walter Röhrl, race engineer Roland
Kussmaul and the Porsche Motorsport spe-
cialists from Weissach, it brought racetrack
agility to the road. Since then, this high-
performance road-legal sports car has become
even faster, more precise and more dynamic
with every generation - and with a naturally
aspirated engine, manual transmission and
rear-wheel drive, it remains the most popular
Porsche 911 among purists.
20 years of the Porsche 911 GT3
FEELONE
20
Gulf
agreements by the end of the year.
20 YEARS OF THE 911 GT3
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Profit sharing at Porsche: after record revenue,
profits and deliveries in the financial year 2018,
a special bonus of up to 9,700 euros before
tax was paid to employees of the sports car
manufacturer. This reward was issued in recog-
nition of the extraordinary dedication and
commitment of all staff at Porsche. The bonus
itself was paid in two parts: 9,000 euros were
paid to the Porsche workforce as a perform-
ance bonus for the financial year 2018, while
700 euros were set aside as a special contri-
bution to the Porsche VarioRente pension
scheme or a personal pension fund.
2
MICHELIN
sport
IMPORTANT EVENTS
The figures for fuel consumption, energy consumption and CO, emissions are found on pages 193-194.
Porsche is a pioneer of sustainable
mobility. Sustainability is in our DNA.
Our sustainability strategy is guided
by a clear set of key figures and
pursues measurable goals. Take the
all-electric Taycan, for example:
an emotionally appealing sports car
that blends tradition and the future.
Business performance
Outlook
Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.8
Letter from the Executive Board of Porsche AG
7
The Executive Board
of Porsche AG
Porsche has only remained Porsche because it has
constantly embraced change.
All of the things that were important in 2019 still apply
as we embark on a new decade: Porsche is continuing to
develop. We are linking our past to the future with our
models. At the same time, the transformation of the auto-
motive industry represents a challenge. We are thinking in
terms of opportunities here. Together with our employees,
we are continuously driving this transformation forward
in a positive sense.
Porsche embraces its social responsibility. We support a
wide range of charitable initiatives in the fields of culture,
sport, education and science, the environment and various
social projects. We do this primarily at our company
locations. Whether improving the prospects of children
and young people or supporting disadvantaged people,
solidarity literally extends beyond our factory gates.
combined heat and power plants - powered by biogas,
which we obtain from residual materials and waste
products. All of these measures are important steps to-
wards our aim of becoming a zero-impact company across
all value-added processes. At the same time, we adhere
to a clear principle that firstly involves avoiding a negative
impact, then reducing it and only then offsetting it.
Our Porsche Strategy 2025 is taking hold. It is the basis
for our company's activities. Important decisions have
already been taken in 2019 to set the course for the future
development of the company. Furthermore, over the past
two years we have been making good progress with an
income programme aimed at ensuring the future economic
stability of Porsche. It involves intelligent ideas that bolster
our income. For instance, we are employing more digital
methods, reducing our variety of versions, using more
carry-over parts and developing new business ideas. We
are confident that we will also be able to achieve the target
yield of 15 per cent with these measures in the future.
Porsche is committed to innovation. Many of the technol-
ogies found in our production vehicles have their origins
in motorsport. Last year proved to be one of the most
successful in our motor racing history. In GT sport we won
every title in the World Endurance Championship (WEC).
We also secured overall victories in the North American
IMSA racing series and triumphed in the highly competitive
Intercontinental GT Challenge. In addition, we made our
debut in the Formula E series last autumn with the Porsche
99X Electric - and immediately made it onto the podium
in the first race.
Mobil 1
Operating results are equally positive. Deliveries have
reached their highest point, 10 per cent higher than the
previous year at more than 280,000 vehicles. Sales
have also risen by 11 per cent to 28.52 billion euros. The
operating income before special items was 4.40 billion
euros, an increase of three per cent on the previous year.
Mobil 1
GT4
Sustainability is a central pillar of the Porsche strategy.
Here we are aware of every aspect of our corporate respon-
sibility: economic, environmental and social. One good
example is the Taycan factory, with which we have made
the entire main factory in Zuffenhausen carbon-neutral. The
new buildings are energy-efficient, while the power comes
from regenerative sources. We generate the heat in our own
In January 2019 Porsche acquired a stake in
the US start-up "Urgent.ly", which describes
itself as the world's leading platform for mobil-
ity and roadside assistance. The total invest-
ment round amounted to 21 million dollars
(18.5 million euros), with "BMW i Ventures"
among others also acquiring shares in "Urgent.ly"
in addition to Porsche Ventures. "Urgent.ly's"
platform supports roadside assistance services
in North America, Europe and Asia. It uses
artificial intelligence and geolocation to con-
nect drivers, service providers and automotive
manufacturers in real time, thereby coordinat-
ing the best and fastest possible help. More
than half of all roadside assistance providers in
the US are linked to the platform, which serves
around 45,000 connected vehicles.
GTZRS Clubsport
Porsche 911 GT2 RS Clubsport was driven on a racetrack in front of the public for the first time.
At the wheel of the car with 515 kW (700 PS) was the Porsche brand ambassador Mark Webber.
The Australian thrilled the home crowds at the famous Mount Panorama Circuit.
Investment in US start-up "Urgent.ly"
Motor racing fans attending the opening round of the 2019 Intercontinental GT Challenge
in Bathurst, Australia, on 2 February 2019 witnessed a very special premiere as the
Racetrack debut for the 911 GT2 RS Clubsport
12
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Important events
SHOV 913
A
Our employees have made this success possible - with
passion, a pioneering spirit and strong power play in
relation to new models. These include the 911 Cabriolet,
the Cayenne Coupé, the 911 Speedster, the 935, the
718 Spyder, 718 Cayman GT4, the Macan Turbo and the
Taycan Turbo, Turbo S and 4S. The Taycan completes
our range of three different drive systems. We are pursuing
a clear product strategy: emotional petrol models, dynamic
plug-in hybrids and innovative electric sports cars.
11
911 CABRIOLET
On 30 January 2019, Walter
Röhrl became the first rally
driver and non-Formula
One world champion to be
inducted into the FIA Hall
of Fame. Initially selected
as a works driver in 1972,
the Regensburg-born racer
began assisting with the
development of Porsche
sports cars in the 1980s.
He has also served as a
Porsche brand ambassador
for many years.
718 CAYMAN GT4 CLUBSPORT
718 Cayman GT4 Clubsport featuring
organic fibre body parts
Three years after the debut of the first Cayman
GT4 Clubsport, Porsche unveiled its successor
in early January 2019. The new 718 Cayman
GT4 Clubsport is a further development of the
successful model from Weissach. For the
first time, this mid-engine production racing
car is available in two variants as standard:
the "Trackday model" is pitched at ambitious
amateur racing drivers, while the "Competition"
model is intended for national and international
events. The focus during its development
Walter Röhrl inducted into FIA Hall of Fame
The legendary German racer Walter Röhrl
received a huge honour on 30 January 2019,
becoming the first rally driver and non-Formula
One world champion to be inducted into
the FIA Hall of Fame. The ceremony took place
at the headquarters of the Fédération
Internationale de l'Automobile (FIA) in Paris.
Born in Regensburg, Bavaria, Röhrl began his
rally career in 1968 driving private cars.
He became a works driver in 1972, instantly
establishing himself among the world's elite.
Röhrl won the Monte Carlo Rally four times
in total, driving four different marques, and
was world rally champion twice. He entered
the 1981 German Rally Championship in a
Porsche 924 and drove a Porsche 911 in the
world championship race in San Remo that
year. It was also during the 1980s that he began
assisting with the development of Porsche
sports cars, starting with the all-wheel drive
Porsche 911 Carrera 4 (type 964). High-
lights of Röhrl's involvement with development
and fine-tuning included the Porsche 959,
Carrera GT and 918 Spyder supercars. In addi-
tion, Röhrl has been active around the world
as a Porsche brand ambassador since 1993.
was on the sustainable use of raw materials -
in addition to improved handling and faster lap
times. As the first series-produced racing car,
it features body parts made from an organic
fibre composite. The natural fibre mix featured
in the driver's door, passenger door and the
rear wing - which consists primarily of agricul-
tural residue such as flax and hemp fibres -
boasts similar properties to carbon fibre in
terms of its weight and stiffness.
911 Cabriolet with high-tech top
Porsche kicked off the new year by introducing
the new 911 Cabriolet as the latest open-top
iteration in a decades-long tradition. Though it
shares the modern styling of the Coupé, its
convertible design is unmistakably that of a
Porsche 911. The high-tech top, which boasts
integrated panel bow magnesium elements
that reliably prevent the roof from inflating
at high speeds, can be opened or closed while
driving at up to 50 km/h. The new roof
hydraulics cut the opening time to around
12 seconds.
The focus during its
development was on the
sustainable use of raw
materials - in addition to
improved driving dynamics
and faster lap times.
100%
7%
16%
Unless specified otherwise, the listed key figures relate to the Porsche AG Group (including subsidiaries).
18% 6,265,000
Key figures for personnel and social matters
187
186
Key figures
2) Reduced total investment in environmental protection measures as a result of new or upgraded production facilities in the preceding years.
1) Investments made at the Stuttgart-Zuffenhausen, Weissach and Leipzig sites are factored into the calculation.
66%
A detailed description of the key figures can be found in the Porsche Newsroom: https://newsroom.porsche.com/reports.
66% 25,730,000
11%
7% 4,266,000
6% 2,943,000
2,070,000
23,453,000
64% 25,716,000
2019✔
20192) ▼
29,777
17,549
19,032
100% 39,092,000
11% 2,845,000
21,371
32,325
35,429
of which Porsche Leipzig GmbH 1)
of which Porsche AG ¹)
Employee turnover ¹)
Total
11 Porsche's reporting on employee turnover is not broken down by age group, gender and region: this data is not of a material nature for the company, as it is not relevant
for control. The reported figure does not include temporary employment contracts, retirements and partial retirements.
2) Significant increase resulting from Group member companies.
1.20%
1.90%
2017
2018
2017
2018
Total workforce
Training programme participants
1.30%
23,154
5,847,000
2019 V
644,173
561,332
684,832
606,175
694,992
603,759
2017
2018
2019
1) Energy consumption relates to the production sites.
2018
2017
2019
Waste for disposal
CO2 emissions in t per car ¹)
Waste for recycling
Total
1) The indirect energy consumption is comprised of electrical energy (featuring 100 per cent natural energy since 1 January 2019), distance heating, block heating
stations and photovoltaic installations.
4,260
11,436
2018
100% 40,427,000
12% 4,635,000
16% 7,119,000
2017
22,220
35,640,0002)
4,270,000
Prevention
Remedy costs
Emissions control
239
Waste disposal
Total 1)
246
23,995
2017
2019
Investments in environmental protection in €
239
1,690
1,581
1,775
22,788
21,088
21,573
2018
4,252
93.1%
Region: Germany
Lost days 3)
177
202
218
Accidents 2)
2017
2018
2019 V
Employees by gender
Employee structure
2017
2018
2019✓
Number of accidents, lost days and fatalities ¹)
2) The considerable increase in the number of participants is due to the introduction of the digital learning platform in 2018 and the intensification of digital
learning modules.
6.9%
14.6%
2,556
2,578
Female
Male
Proportion of foreign employees ¹)
1) Due to the equal payment and attractive framework conditions, the number of temporary employees has not been reported separately.
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 is not
included (≥ one lost calendar day).
1) The key figures do not report data on employees from temporary employment agencies, third-party companies and independent contractors.
2) List only includes accidents that were reported. 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.
25,911
3,866
28,220
4,105
31,075
4,354
Employees exempt from wage agreements and executive employees
12.7%
Employees subject to wage agreements
1,708
0
0
2
Fatalities
5,317
24,460
5,944
26,381
28,979
6,450
Employees by type of employment ¹)
4,148
12,114
87.3%
1,021
Region: Asia
Distribution of participants by employee category
741
814
834
Region: North America
1,403
1,494
1,581
Male
Region: Europe (excluding Germany)
26,506
28,764
31,690
Female
Total number of participants
974
868
Employees subject to wage agreements
Other regions (Australia, Latin America)
16,451
33,111
87,238
3,458
7,809
20,056
19,909
40,920
85.4%
107,294
201812)
20192)
11 The key figures relate to Porsche AG and Porsche Leipzig GmbH.
1) The employee figures presented correspond to reporting by regions within Germany (Porsche AG = Baden-Württemberg, Porsche Leipzig GmbH = Saxony).
Employees exempt from wage agreements and executive employees
259
279
303
201710
12,344
0.45
Volume of waste in t
Cayenne
98,763
93,953
89,744
Vehicles
26,427
23,658
19,263
Vehicles
33,820
36,236
37,585
Vehicles
Number of suppliers of production material with positive S rating: 979 of 1,228
255,683
268,691
274,463
Vehicles
95,293
79,111
59,068
185
184
98%
97%
979
Key figures
Volkswagen AG has been the sole shareholder in Porsche Holding Stuttgart GmbH - which holds 100 per cent of the shares in
Porsche AG - since 1 August 2012. There are control and profit transfer agreements in place between Porsche Holding Stuttgart
GmbH and Porsche AG, as well as between Porsche AG and its major domestic subsidiaries. The group of companies consolidated
under Porsche AG comprises a total of 110 fully consolidated companies, of which 27 have their headquarters in Germany and
83 in a foreign country.
Basis of consolidation
→GRI 102-45
Vehicles
1) As of financial year 2019, figures do not include pre-production vehicles.
1,386
Vehicles
Taycan
37,605
35,493
31,192
Vehicles
Panamera
240
Key figures for environment and energy
Macan
911
96%
Suppliers of production materials
1) Including the 918 Spyder.
813
Vehicles
Taycan
27,942
38,443
32,721
Vehicles
Panamera
63,913
71,458
92,055
Vehicles
Cayenne
97,202
Based in the EU
Suppliers of non-production materials
99%
Based in the EU
Total
Production material suppliers with positive S rating in 2019 ✓
2017
2018
2019
Production ¹)
1) Suppliers are considered to be local if they are based in the EU. Zuffenhausen and Leipzig are considered the main business sites.
97.5%
718 Boxster/Cayman
2017
2019
Based outside the EU
1%
Based outside the EU
4%
Proportion of allocated purchasing budget spent on local suppliers
Expenditure for local suppliers at main business sites 1)
1) Based on the creditor's billing address.
2018
Listed key figures relate to Porsche AG and Porsche Leipzig GmbH. The categorisation of "production sites" (Zuffenhausen and Leipzig
including production-related external sites), "development sites" (Weissach including development-related external sites) and "other sites"
(all additional sites) corresponds to the internal reporting relevant for control. A detailed description of the key figures can be found in
the Porsche Newsroom: https://newsroom.porsche.com/reports.
Emissions in t of CO2 equivalent and significant air emissions in t
Direct and indirect GHG emissions in t of CO2 equivalent
Total ✓
2) The reported emissions figures refer to business travel, i.e. local rail transport, rental cars and planes.
3,054
13,283
13,763
12,105
1,649
1,757
Other sites
Fuel 2)
1) Significant drop in indirect GHG emissions as a result of switching to power drawn from renewable energy sources.
62,556
61,926
64,437
Development site
304,111
225,218
229,354
306,692
327,119
248,820
Production sites
3) The reported NOx emissions refer exclusively to production processes, not to Porsche vehicles.
1) The direct energy consumption is comprised of gas, combustible gas for manufacturing processes, heating oil, special energy products and fuel.
2) Conversion factor from litres to MWh: petrol ± 8.72 kWh/l; diesel ± 9.91 kWh/l.
Weight of volatile organic compounds (VOC) ✓
115.40
59,418
339,200
268,346
353,726
277,188
64,424
380,428
301,608
66,476
Development site
Production sites
Total
Water consumption (drinking water)
Volume of waste water
Total
2017
2019 V
Indirect energy consumption according to primary energy sources in MWh¹)
Fresh water and waste water in m³
0.11
125.29
124.33
0.12
0.14
Weight of dust emissions
2018
39.25
0.41
0.41
2019
3,213
3,155
1,150
14,752
14,500
14,412
45,557
45,548
Direct (Scope 1) GHG emissions ✔
42,123
63,203
57,685
2017
2018
2019 V
Other sites
Development site
Production sites
63,522
Other sites
56,267
57,117
SOx emissions
38.96
42.67
NOx emissions ³)
Significant air emissions in t
2017
2018
2019
56,862
Direct energy consumption according to primary energy sources in MWh 1
58,491
64,513
Other indirect (Scope 3) GHG emissions 2)
Other indirect GHG emissions in t of CO2 equivalent
6,405
6,342
1,418
Indirect (Scope 2) GHG emissions 1)✓
54,338
2018
Hans-Peter Porsche
Injury rates ¹)
911
255,683
268,691
274,463
Units
Production 2)
813
Units
Taycan
27,942
38,443
32,721
Units
Panamera
63,913
71,458
92,055
Units
37,585
36,236
33,820
31,192
Units
Panamera
59,068
79,111
95,293
Units
Cayenne
Units
98,763
89,744
Units
Macan
26,427
23,658
19,263
Units
718 Boxster/Cayman
93,953
35,493
Cayenne
86,031
Porsche AG Group
199
198
Further information
air emissions
186
Nitrogen oxides (NOx), sulfur oxides (SOX), and other significant
305-7
→ Online key figures
Emissions of ozone-depleting substances (ODS)
305-6
185
GHG emissions intensity
305-4
GRI 305: Emissions (2016)
→ Online key figures
186
Brief overview
FY 2019
FY 2018
FY 2017
99,944
Units
Macan
25,114
24,750
20,467
Units
718 Boxster/Cayman
97,202
32,204¹)
34,800
Units
911
246,375
256,255
280,800
Units
Deliveries
35,573
37,605
Taycan
Units
4,144
4,289
4,397
€ million
Operating profit (EBIT) before special items
4,144
4,289
3,862
€ million
Operating profit (EBIT)
4,069
3,845
4,486
€ million
Cash flows from operating activities
2,276
2,567
Profit before tax 6)
€ million
4,054
4,552
86,031
200
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Further information
www.newsroom.porsche.com/charts
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.
6) The prior-year figures (FY 2017) were restated due to the initial application of new accounting standard "IFRS 9 - Financial Instruments".
5) Prior year was adjusted.
3,044
4) Relates to investments in intangible assets and property, plant and equipment without additions to right of use assets according to the new accounting standard
"IFRS 16 - Leases".
23 From FY 2019 onwards without pre-production vehicles.
1) Including the 918 Spyder.
3,016
3,118
2,801
€ million
Profit after tax 6)
4,046
3) As of 31 December.
€ million
Depreciation, amortization and impairment losses
13,665
Equity
Total assets
23,491
25,784
28,518
€ million
Sales revenue
Financials
Fixed assets
29,777
3,200
4,003
€ million
Personnel expenses
35,429
number
Employees 3)
240
1,386
32,325
3,613
Other indirect (Scope 3) GHG emissions
€ million
38,159
14,8445)
15,956
€ million
Cost of materials
3,099
3,157
2,993
€ million
42,366
Investment 4)
16,099
17,982
€ million
15,200
16,477
17,428
€ million
35,019
14,404
2017
305-3
→ Online key figures
CEO Traton SE
Brand Group Truck & Bus
Member of the Executive Board of Volkswagen AG
Andreas Renschler
Member of the Executive Board of Volkswagen AG
Functional Responsibility Human Resources
Gunnar Kilian
Member of the Executive Board of Volkswagen AG
Functional Responsibility Finance and IT
Frank Witter
Member of the Executive Board of Volkswagen AG
Functional Responsibility Integrity and Legal
Hiltrud Werner
Chairman of the Executive Board of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Hans Dieter Pötsch
Member of the Board of Management of Porsche Holding GmbH
Dr Hans Peter Schützinger
Member of the Board of Management of Familie Porsche AG Beteiligungsgesellschaft
Dr Ferdinand Oliver Porsche
Engineer
Employee representatives
Werner Weresch
Deputy Chairman of the Supervisory Board
Chairman of the Works Council Zuffenhausen/Ludwigsburg/Sachsenheim
Jordana Vogiatzi
Member of the General and Group Works Councils of Porsche AG
Chairman of the Works Council Weissach
Carsten Schumacher
Member of the Group Works Council of Porsche AG
Chairman of the Works Council Porsche Leipzig
Knut Lofski
Trade Union Secretary of IG Metall Stuttgart
Lawyer
Björn Kallis
Member of the Works Council Zuffenhausen
Akan Isik
Head of International VIP & Special Sales Porsche AG
Wolfgang von Dühren
Member of the General and Group Works Councils of Porsche AG
Member of the Works Council Zuffenhausen
Harald Buck
Chairman of the General and Group Works Councils of Porsche AG
Member of the Group Works Council of Porsche AG
Director of Members and Finances of IG Metall Stuttgart
Dr Hans Michel Piëch
Diplom-Kaufmann
1) We do not report on minorities, as we are not permitted to collect this data due to personality rights.
1) Injury rate = accident frequency index: provides information on how frequently reported 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 reported work-related accidents times one million hours, divided by actual hours worked.
0.7%
6.7
5.1
5.8
5.9
6.1
4.6
Porsche Leipzig GmbH
Porsche AG
12.7%
12.9%
0.6%
13.7%
0.6%
Porsche Leipzig GmbH
Porsche AG
2017
2018
2019 V
Donations made in € million
2019
20181)2)
20171)
Dr Wolfgang Porsche
Shareholders
on 31 December 2019
of Porsche AG
The Supervisory Board
Independent Practitioner's Report
Porsche AG Group - Brief overview
GRI Content Index
Chairman of the Supervisory Board
Emission and consumption information
Further information
188
Key figures
2) Of this, external donations totalling 22 million euros in foundation assets for the Ferry Porsche Foundation, which was established in 2018.
1) The key figures relate to Porsche AG.
Approx. 4.8
Approx. 27.5
Approx. 4.6
The Supervisory Board
Barbara Vollert
Vice President Sales Europe Porsche AG
103-3
414-2
Employee training on human rights policies or procedures
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
412-2
412-3
GRI 414: Supplier Social
GRI 409: Forced or Compulsory Labor 409-1
(2016)
305-1 Direct (Scope 1) GHG emissions
Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approach
302-1 Energy consumption within the organization
302-3 Energy intensity
GRI 302: Energy (2016)
103-3
103-2
GRI 103: Management Approach
(2016)
103-1
Energy and emissions during
production
Materials used by weight or volume
301-1
GRI 301: Materials (2016)
103-3
Negative social impacts in the supply chain and actions taken
Explanation of the material topic and its boundary
Evaluation of the management approach
Operations and suppliers at significant risk for incidents of
forced or compulsory labor
186
305-2 Energy indirect (Scope 2) GHG emissions
→ Online key figures
186
→ Online key figures
→ Online key figures
97, 185
79-82,97-98
(2016)
→ Online key figures
95-96, 156
95-96, 156, 184
→ Online index
95-96
→ Online index
95-96
→ Online index
95-96, 156, 184
79-82,97
The management approach and its components
103-2
GRI 103: Management Approach
103-3
79-82,95-96
The management approach and its components
103-2
GRI 103: Management Approach
(2016)
Explanation of the material topic and its boundary
103-1
Responsibility in the supply chain
Evaluation of the management approach
→ Online index
→ Online index
Proprietary information
→ Online key figures
Habitats protected or restored
304-3
GRI 304: Biodiversity (2016)
→ Online key figures
93-95, 103
Evaluation of the management approach
→ Online index
→ Online index
GRI 204: Procurement Practices
(2016)
Proportion of spending on local suppliers
103-1
Sustainable materials
Assessment (2016)
Assessment (2016)
GRI 412: Human Rights
→ Online index
95-96, 156, 184
Operations and suppliers at significant risk for incidents of
child labor
204-1
GRI 408: Child Labor (2016)
95-96, 156, 184
→ Online index
95-96, 156, 184
New suppliers that were screened using environmental criteria
308-2 Negative environmental impacts in the supply chain and
actions taken
GRI 308: Supplier Environmental
Assessment (2016)
308-1
→ Online index
184
408-1
99,944
11.2
25,114
201-1
201-4
The management approach and its components
Evaluation of the management approach
Direct economic value generated and distributed
Financial assistance received from government
79-82,87
62, 159-180, 188, 200
→ Online index
This report was prepared in accordance with the Core option of the GRI Standards. The report was available to the GRI Services
Team for the performance of the GRI Materiality Disclosures Service, which confirmed the correct presentation of the materiality-
related disclosures (102-40 to 102-49). 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 418: Customer Privacy (2016)
GRI standards
GRI 101 Foundation (2016)
General Disclosures
GRI 102 General Disclosures (2016)
Organizational profile
102-1
Name of the organization
102-2 Activities, brands, products, and services
102-3
Location of headquarters
102-4 Location of operations
Ownership and legal form
102-5
102-6 Markets served
102-7
Scale of the organization
Long-term customer relations
102-8
GRI 201: Economic Performance
(2016)
103-2
404
550
14.7
8.3
10.6
243
Further information
194
195
Vehicles
Materiality
GRI
Disclosures
Dr. Ing. h.c. F. Porsche AG
Service
Feb 2020
Material topics
GRI standards
Page
Omission/comment
Economic stability
103-1
Explanation of the material topic and its boundary
GRI 103: Management Approach
(2016)
103-3
103-1
Explanation of the material topic and its boundary
GRI 103: Management Approach
(2016)
103-3
The management approach and its components
Evaluation of the management approach
79-82,88-89
8, 55-64, 193-194
→ Online index
202
→ Online index
GRI 305: Emissions (2016)
305-3
Other indirect (Scope 3) GHG emissions
→ Online index
186
→ Online key figures
57-61
183
57-61
→ Online index
New mobility concepts
103-1
Explanation of the material topic and its boundary
55-62, 102, 159-180, 183, 187
91-93, 101-116, 187-188
3, 11-54,202
91-93, 101-116
GRI 103: Management Approach
(2016)
103-2
103-2
GRI 103: Management Approach
(2016)
→ Online index
202
103-2
103-3
The management approach and its components
Evaluation of the management approach
79-82,87-88
418-1
Substantiated complaints concerning breaches of customer
privacy and losses of customer data
→ Online index
Proprietary information
Vehicle safety
103-1
Explanation of the material topic and its boundary
Page
Panamera Turbo Sport Turismo
Omission/comment
103-2
103-3
GRI 416: Customer Health
416-1
and Safety (2016)
The management approach and its components
Evaluation of the management approach
Assessment of the health and safety impacts of product
and service categories
79-82,88
88
Alternative drive systems and
vehicle emissions
103-1
Explanation of the material topic and its boundary
GRI 103: Management Approach
(2016)
103-3
242
8.2
204
Taycan Turbo S
460
625
26.9
0
324
440
12.2
8.4
9.8
224
Panamera (G2)
Panamera 4
243
330
11.1-11.0*
6.9
8.4
194-192*
Panamera 4 Executive
243
330
8.9
11.3
7.5
354
180
245
9.5
7.3
8.1
185
Taycan 4S with Performance battery Plus
360
490
25.6
0
280
380
12.1
8.0
9.6
218
Taycan Turbo
460
625
26.0
0
260
11.3
7.1
Panamera 4 Sport Turismo
243
460
14.6
7.8
10.3
235
Panamera GTS Sport Turismo
338
460
14.6
8.2
10.6
242
Panamera Turbo
404
550
14.4
8.1
10.4
238
Panamera Turbo Executive
404
550
14.7
338
Panamera GTS
Current consumption values can be found at https://www.porsche.com/germany/verbrauchsinformationen/
199-198*
330
11.4-11.3*
Panamera 4S
324
440
Panamera 4S Executive
324
440
10.8
10.9
7.3-7.2*
6.9
7.1
8.7-8.6*
8.8-8.7*
10.6
199-197*
201-200*
8.3
191-190*
8.5
196-194*
Panamera 4S Sport Turismo
324
440
11.0-10.9*
7.4-7.3*
8.7-8.6*
*Range depending on the tyre set used.
**Overall system performance.
95-96, 155-156, 184
→ Online index
GRI 305: Emissions (2016)
403-3
Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approach
Workers representation in formal joint management-worker
health and safety committees
Types of injury and rates of injury, occupational diseases, lost
days, and absenteeism, and number of work-related fatalities
Workers with high incidence or high risk of diseases related
to their occupation
Compliance and integrity
103-1
Explanation of the material topic and its boundary
GRI 103: Management Approach
(2016)
103-2
103-3
The management approach and its components
Evaluation of the management approach
205-1
Operations assessed for risks related to corruption
GRI 205: Anti-corruption (2016)
205-2
GRI 206: Anti-competitive Behavior
(2016)
206-1
GRI 307: Environmental Compliance
(2016)
307-1
GRI 419: Socioeconomic Compliance 419-1
(2016)
Communication and training about anti-corruption policies
and procedures
403-2
Legal actions for anti-competitive behavior, anti-trust, and
monopoly practices
GRI 403: Occupational Health
and Safety (2016)
103-3
3
3
102-51 Date of most recent report
3
3
102-52 Reporting cycle
102-53 Contact point for questions regarding the report
202
102-54 Claims of reporting in accordance with the GRI Standards
3,195
102-55 GRI content index
195-198
102-56 External assurance
3,201
Further information
196
197
Material topics
GRI standards
Occupational health and safety
103-1
GRI 103: Management Approach
(2016)
103-2
403-1
Non-compliance with environmental laws and regulations
Non-compliance with laws and regulations in the social and
economic area
Omission/comment
Page
306-2
306-3
Waste by type and disposal method
Significant spills
98, 186
→ Online key figures
186
→ Online index
→ Online key figures
→ Online index
→ Online key figures
98, 186
→ Online key figures
→ Online index
79-82, 93-95
Conservation and biodiversity
103-1
Explanation of the material topic and its boundary
→ Online index
GRI 103: Management Approach
(2016)
103-2
The management approach and its components
79-82,98
Trade Union Secretary of IG Metall
GRI 306: Effluents and Waste (2016)
Water discharge by quality and destination
306-1
→ Online index
Page
Omission/comment
Material topics
GRI standards
Resource consumption during
production
103-1
Explanation of the material topic and its boundary
79-82,93
GRI 103: Management Approach
(2016)
103-2
103-3
3,81
The management approach and its components
Evaluation of the management approach
→ Online index
GRI 303: Water (2016)
303-1
Water withdrawal by source
→ Online index
93, 115-116, 188
GRI 305: Emissions (2016)
305-3
Other indirect (Scope 3) GHG emissions
→ Online key figures
93, 115-116
79-82,98
73,81-82
3,81-82
183
GRI 103: Management Approach
(2016)
103-2
103-3
7-8, 71-72, 191-192
71-72
71-72
79-82
401-1
GRI 401: Employment (2016)
401-3
Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approach
New employee hires and employee turnover
Parental leave
79-82,91-92
76, 91-92, 101-116, 187-188
→ Online key figures
91-92
→ Online key figures
Staff development
103-1
GRI 103: Management Approach
(2016)
103-2
79-81
93
79-80
71, 79-81,83
79-83
103-3
→ Online index
103-1
Equal opportunities and diversity
→ Online index
67, 73-74, 87, 91, 97
93-95, 111
305-3
The management approach and its components
Evaluation of the management approach
Other indirect (Scope 3) GHG emissions
79-82,89-90
→ Online index
186
→ Online key figures
→ Online index
→ Online index
Attractive employer
→ Online index
103-1
404-1
79
103-2
103-3
7-8
GRI 401: Employment (2016)
401-1
401-3
Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approach
New employee hires and employee turnover
Parental leave
79-82,91
75, 91, 101-116, 187-188
→ Online key figures
91-92
→ Online key figures
GRI 103: Management Approach
(2016)
0
GRI 404: Training and Education
(2016)
Explanation of the material topic and its boundary
The management approach and its components
Evaluation of the management approach
Average hours of training per year per employee
Programs for upgrading employee skills and transition
assistance programs
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
Governance
102-18 Governance structure
102-19 Delegating authority
102-20 Executive-level responsibility for economic, environmental, and social topics
102-21 Consulting stakeholders on economic, environmental, and social topics
Stakeholder engagement
102-40 List of stakeholder groups
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
102-12 External initiatives
102-11 Precautionary principle or approach
102-10 Significant changes to the organization and its supply chain
102-9 Supply chain
79-82,92
92, 109, 187-188
→ Online key figures
101-116
Corporate co-determination
103-1
Explanation of the material topic and its boundary
GRI 103: Management Approach
103-2
(2016)
103-3
404-2
The management approach and its components
Evaluation of the management approach
GRI 402: Labor/Management
Relations (2016)
402-1
Minimum notice periods regarding operational changes
GRI 407: Freedom of Association and
407-1
Collective Bargaining (2016)
Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
93
→ Online index
→ Online index
Information on employees and other workers
79-82,93
24.6
GRI Content Index
320
8.2-8.0*
9.4-8.9*
9.4-9.0*
9.4-9.2*
11.4-11.3*
11.4-11.3*
216-212*
261-258*
261-258*
718 Cayman GTS
269
365
12.8
7.1
9.2
210
718 Cayman GTS PDK
269
365
12.0
6.5
8.5
194
718 Cayman GTS 4.0
294
400
15.4
8.1
11.5-11.4*
15.3-14.8*
15.3-14.8*
10.8
550
550
6.5
8.5
193
Cayenne Turbo Coupé
250
340
11.4 11.3*
7.9-7.8*
9.2-9.1*
250
340
11.7-11.6*
324
440
11.5-11.3*
8.0-7.9*
8.1-8.0*
9.4-9.3*
210-207*
215-212*
9.4-9.2*
215-211*
324
440
404
404
246
718 Cayman GT4
309
718 Boxster T PDK
220
300
10.8
6.2
7.9
181
Power
output
[kW]**
Power
[PS]**
Power con-
sumption
[kWh/
100 km]
Fuel con-
sumption
(combined)
[1/100 km]
CO₂
emissions
combined
[g/km]
718 Boxster S
257
350
12.7
7.1
9.2
210
718 Boxster S PDK
257
187
8.2
6.3
11.3
420
15.6
8.1
10.9
249
Plug-in hybrids
718 Boxster
220
300
11.3
6.3
11.8
8.1
Model
718 Boxster PDK
220
300
10.8
6.2
7.9
180
718 Boxster T
220
300
186
350
350
718 Cayman S PDK
Key figures
District management Berlin - Brandenburg - Saxony
191
Further information
192
193
Emission and consumption information
Model
Power
Power
Fuel con-
Fuel con-
Fuel con-
CO₂
output
[PS]
sumption
[kW]
(urban)
[1/100 km]
sumption
(extra-urban)
[1/100 km]
sumption
(combined)
[1/100 km]
Key economic figures
emissions
Key figures for environment and energy
183
24,750
20,467
Vehicles
32,2041)
35,573
34,800
Vehicles
Macan
718 Boxster/Cayman
911
246,375
256,255
280,800
Vehicles
Total
2017
2018
2019
Deliveries
Supplier origin 20191)
A detailed description of the key figures can be found in the Porsche Newsroom: https://newsroom.porsche.com/reports.
The key figures concerning deliveries and production relate to the Porsche Group (including subsidiaries).
The key supplier figures relate exclusively to Porsche AG.
Key economic figures
Key figures for personnel and social matters
(combined)
[g/km]
Model
Power
11.3
6.3
8.1
186
Cayenne (E3)
Cayenne
Cayenne Coupé
Cayenne S
718 Cayman T PDK
220
300
10.8
6.2
7.9
435
Cayenne S Coupé
718 Cayman S
257
350
12.7
7.1
9.2
210
Cayenne Turbo
300
220
718 Cayman T
180
Power
Fuel con-
output
[PS]
[kW]
sumption
(urban)
[I/100 km]
Fuel con-
sumption
(extra-urban)
[1/100 km]
Fuel con-
sumption
(combined)
[1/100 km]
CO₂
emissions
(combined)
[g/km]
718
257
718 Cayman
220
300
11.3
6.2
8.1
186
220
300
10.8
6.2
7.9
718 Cayman PDK
11.8
180
8.5
680
19.6-18.7*
3.9-3.7*
90-85*
331
450
11.1
7.8
9.0
207
911 Carrera GTS PDK
331
450
11.2
7.4
8.8
201
BEV
911 Carrera GTS Cabriolet PDK
331
450
11.2
7.5
500
90-85*
3.9-3.7*
19.6-18.7*
206
Cayenne Turbo S E-Hybrid
911 Carrera S Cabriolet
911 Carrera 4S Cabriolet
911 (991 II)
331
450
11.6
7.6
9.1
208
8.8
Cayenne Turbo S E-Hybrid Coupé
462
18.5 17.6*
3.2-3.1*
74-70*
340
462
18.7-17.7*
3.2-3.1*
75-72*
500
680
340
9.0
202
331
combined
[g/km]
911 Speedster
375
510
20.6
9.9
13.8
317
911 GT3 RS
383
520
19.0
9.8
13.2
303
Taycan
Macan PA
Macan
Macan GTS
Macan S
Macan Turbo
Taycan 4S
6.5
100 km]
[kWh/
[kW]**
CO₂
emissions
450
11.7
7.2
8.9
203
Model
911 Carrera 4 GTS Cabriolet PDK
331
450
12.3
7.2
911 Carrera 4 GTS PDK
9.1
911 Targa 4 GTS PDK
331
450
12.3
7.2
9.1
207
Power
output
Power
[PS]**
Power con-
sumption
207
7.8
Sabine Zach
450
10.8
246
Panamera 4 E-Hybrid Executive
340
462
16.1 16.0*
2.7-2.6*
62-61*
718 Spyder
309
15.6
8.1
10.9
249
Panamera 4 E-Hybrid Sport Turismo
340
462
16.2-16.1*
2.9-2.8*
66-64*
Panamera Turbo S E-Hybrid
500
680
8.1
15.4
400
294
194
11.1
718 Boxster GTS
269
365
12.8
7.1
9.2
210
Panamera (G2)
718 Boxster GTS PDK
16.0
269
12.0
6.5
8.5
195
Panamera 4 E-Hybrid
340
462
16.1 16.0*
2.7-2.6*
62-60*
718 Boxster GTS 4.0
365
3.3
420
911 (992)
385
11.4
7.9
9.2
210
Cayenne (E3)
911 Carrera 4 Cabriolet
283
385
13.2
6.9
283
9.2
74
911 Carrera S
331
450
10.7
7.9
8.9
205
Cayenne E-Hybrid Coupé
911 Carrera 4S
331
211
911 Carrera Cabriolet
Cayenne E-Hybrid
9.2
Panamera Turbo S E-Hybrid Executive
210
500
680
16.0
3.3
911 Carrera
283
385
7.7
9.0
206
74
283
500
680
18.1
3.3
13.2
76
911 Carrera 4
385
6.8
Panamera Turbo S E-Hybrid Sport Turismo
Anja Wassertheurer, Director Product, Technical and Motorsport Communications
Holger Eckhardt, Spokesperson GT Sports Cars and GT Customer Sport
Oliver Hilger, Spokesperson GT Works Motorsport
Dr Sebastian Rudolph, Vice President Communications, Sustainability and Politics
Peter Gräve, Spokesperson Group Production, Brand Group and Strategy
Ben Weinberger, Spokesperson Macan, Cayenne and Panamera
Mayk Wienkötter, Spokesperson E-Mobility and Model Line Taycan
Viktoria Wohlrapp, Spokesperson Formula E
Hermann-Josef Stappen, Spokesperson Technology Communications
Elena Storm, Spokesperson 911 and 718
Markus Rothermel, Spokesperson Sports Communications
Maximilian Steiner, Coordinator Sustainability and Stakeholder Management
Matthias Rauter, Spokesperson Human Resources and Social Affairs
Nadescha Vornehm, Spokesperson Sales and Marketing
Christian Weiss, Deputy Director Corporate Communications, Spokesperson Production and Logistics
Tanja Deutschenbaur, Spokesperson Finance and IT
Frank Scholtys, Director Corporate Communications
Daniela Rathe, Director Politics and External Relations
Contact persons
Coordination and text
Jörg Walz, Spokesperson Procurement and Sustainability
Sabrina Damme, Press Officer Corporate Communications
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Dr. Ing. h.c. F. Porsche AG
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Porscheplatz 1
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MICHELIN
911
Expansion of premium car rental
Porsche has expanded its premium car rental
service Porsche Drive, which has been offered
at the Porsche Centre in Hamburg since July
2019, thus making four locations in Germany.
With the opening of an additional location in
Tokyo, Japan, in December, Porsche has also
taken the service to Asia. Started in Germany
in 2014, Porsche Drive offers customers
the opportunity to rent current Porsche models.
The premium car rental service is also available
in France, Switzerland and North America.
CHOPARD
obil
SORSCHE
CHOPARD
Nardò Technical Center
WORLD PREMIERE OF 911 RSR AT GOODWOOD FESTIVAL OF SPEED
World premiere at Goodwood
Festival of Speed
The new 911 RSR enjoyed its world premiere
in July 2019 at the Goodwood Festival of
Speed. Porsche entrusted the model with
defending its FIA World Endurance Champion-
ship title. This racing car complies with the FIA
GTE regulations and represents a completely
new development. Hailing from Weissach and
boasting improvements in all areas, it was
the replacement for the successful 911 RSR
that took Porsche to a whole host of endur-
ance racing victories in 2019, including the
manufacturers' and drivers' titles, the 24 Hours
of Le Mans in France and the IMSA races at
Sebring and Road Atlanta (Petit Le Mans).
Renovated test tracks at
The opening of the renovated 12.6-kilometre
circular high-speed track and dynamic plat-
form at the Nardò Technical Center in Italy
took place on 11 July 2019. This testing ground
has been operated by the international engin-
eering services provider Porsche Engineering
Group GmbH since 2012. The renovation works
with a total investment volume of 35 million
euros lasted seven months and are part of the
strategic development of the facility, which
aims to ensure that customers are always pro-
vided with perfect conditions for testing
the cars of tomorrow. Alongside the complex
asphalting of the renowned circular track, an
innovative guard rail system specifically devel-
oped by Porsche Engineering for high-speed
testing activities in Nardò was also installed.
Back-seat VR entertainment with holoride
At the Startup Autobahn "Expo Day" in Stuttgart
on 16 July 2019, the sports car manufacturer
teamed up with the start-up holoride to
show possible future entertainment options
for Porsche passengers. For this concept, a
VR headset with sensors is linked to the car
so that virtual content can be synchronised
with driving movements in real time, resulting
in a highly immersive experience that delivers
a practical benefit as well: it significantly
reduces the symptoms of motion sickness.
In the future, the system will evaluate naviga-
tion data for a variety of purposes - such
as adapting the length of a VR game to the
calculated duration of the journey. The tech-
nology can also be used for additional inte-
grated offerings for passengers such as films
and virtual conferences.
367
Mobil
T
Exclusive customer events
Allia
Produced in a small series
of 77 units in 2019, the
515 kW (700 PS) Porsche
935 recalls the legendary
935/78.
New management at Porsche Engineering
Change at the top: Peter Schäfer became Chair
of the Management Board of Porsche Engineer-
ing on 1 July 2019. The move was sparked by the
retirement of his predecessor Malte Radmann,
who had been Chair of the Management Board
of the Weissach-based international engineering
services provider since 2009 and significantly
shaped the successful growth of the company.
Despite his retirement, Radmann stayed
on with the company in an advisory capacity.
33
In September 2018, Porsche presented
the new 935 during the Rennsport
Reunion historic motorsport event at Laguna
Seca Raceway in California. Produced in a
small series of 77 units in 2019, this 515 kW
(700 PS) racing car features a body that
recalls the legendary Porsche 935/78.
44 customers received their Porsche 935s,
some featuring highly customised designs, at
a series of exclusive race track events from
July 2019 onwards. The remaining cars are set
to be delivered in the first quarter of 2020.
START
Porsche Engineering
PETER SCHÄFER
Taycan: Porsche Triple Demo Runs
In July, a camouflaged Taycan made three
appearances on three continents in a period
of three weeks. The tour started on the
demanding handling course at the Porsche
Experience Centre (PEC) in Shanghai, where
Chinese racing driver Li Chao demonstrated
just what the new model is capable of. Porsche
then celebrated its first all-electric entry at
the Goodwood Festival of Speed (4-7 July) in
the UK, with Mark Webber completing
the famous Hill Climb in the Taycan. And last
but not least, works driver Neel Jani took the
wheel in the Taycan at the final race of the
ABB FIA Formula E Championship in New York
(13-14 July).
MICHELIN
CHELIN
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194
MICHELIN
31
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
New CEO at Porsche Japan
New corporate architecture
MICHAEL KIRSCH
MISSION E STARS IN ANIMATED FILM FROM PLAYMOBIL
37
PORSCHE
The figures for fuel consumption, energy consumption and CO, emissions are found on pages 193-194.
"Technical Certificate" for Porsche classics
Porsche Classic has introduced the "Technical
Certificate", which is the first detailed documen-
tation for all classic models from the brand.
The certificate serves as an orientation aid for
customers when assessing the technical con-
dition of a car. While it does not replace any
inspection reports, it is a sensible addition to
car documentation that can help preserve
value and promote longevity. It also involves
comprehensive testing for the purpose of
identifying technical weaknesses. The
"Technical Certificate" is available from all
18 Porsche Classic partners in Germany.
Porsche has issued its green
bond with extremely attract-
ive conditions. The high level
of demand reflects investors'
trust in the company.
Porsche Mission E hits the big screen
The Porsche Mission E sports car played a
key role in the Playmobil animated family film,
which celebrated its German premiere in
Munich in early August. This concept car
was the prototype for the Taycan, which was
launched in September. To mark the release
of the film, which sees secret agent Rex Dasher
driving a white Mission E, Playmobil released
a matching playset and its first remote-con-
trolled Porsche. The two companies have been
jointly developing playsets and collaborating in
the field of marketing since 2014.
Porsche issues record-setting green bond
Porsche AG issued the largest green bonded
loan to date in August 2019 in the amount
of one billion euros. It was the first transaction
of its kind by a car manufacturer, with the funds
being used exclusively to finance sustainable
projects. Porsche issued the green bonded
loan in tranches with maturities of five, seven
and 10 years, and offered fixed and variable
interest rates. The huge demand resulted in
the original order book volume having to be in-
creased. Porsche succeeded in issuing this
bonded loan with extremely attractive condi-
tions, reflecting investors' firm trust in the
long-term development of the company.
The Cayenne Turbo S E-Hyb-
rid and the Cayenne Turbo S
E-Hybrid Coupé are the
new top models in their
respective series. Their sys-
tem output of 500 kW
(680 PS) and maximum
system torque of 900 Nm
enable them to accelerate
from zero to 100 km/h in
3.8 seconds and reach
a top speed of 295 km/h.
Investment in Israeli start-up "TriEye"
Porsche made a strategic investment in August
with the acquisition of a minority stake in
Israeli start-up "TriEye". This newly established
company has developed a sensor technology
for short-wave infrared. It enhances safety
in vehicles fitted with assistance systems or
autonomous driving functions by improving
the ability to see in darkness and in weather
conditions where visibility is poor, such as
dust, fog or rain. The company's unique semi-
conductor design, which features technology
registered for patent, makes it possible to
manufacture corresponding cameras at a frac-
tion of their current cost.
PORSCHE EXCLUSIVELY USES ITS GREEN BOND TO FINANCE SUSTAINABLE PROJECTS
CAYENNE TURBO S E-HYBRID
39
Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
40
Cayenne: three new plug-in hybrid models
The Cayenne Turbo S E-Hybrid and the
Cayenne Turbo S E-Hybrid Coupé are the new
flagship cars in the model series. The system
output of 500 kW (680 PS) and maximum
system torque of 900 Nm enable acceleration.
from zero to 100 km/h in 3.8 seconds and a top
speed of 295 km/h. A variety of innovative
chassis systems, most of which are featured
as standard, enable a perfect combination
of sports car agility, long-distance comfort
and off-road capability. On top of this, the
hybrid range from Porsche now includes the
new Cayenne E-Hybrid Coupé boasting a
system output of 340 kW (462 PS), torque
of 700 Nm and an electric range of up to
43 kilometres.
In early August 2019, Porsche Digital opened
its second US site in Atlanta, thus extending
the company's business portfolio for North
America. Business experts, designers and soft-
ware engineers develop and optimise new
digital business models at this site. In addition
to the "My Porsche" customer portal, this
team is working on a central e-commerce
platform and digital services. In Atlanta,
Porsche Digital is using the facilities at the
head office of Porsche Cars North America.
The second US-based office is located in
San José in Silicon Valley. There are plans to
expand the Porsche Digital workforce in the
US to as many as 45 employees during 2020.
A wholly owned Porsche subsidiary, that now
operates six sites worldwide.
Porsche Digital opens second US site
PORSC
Porsche and investor Hülpert Automobile
teamed up in Dortmund in late July 2019 for
the symbolic ground-breaking ceremony
at the site of what will become a new Porsche
Centre. This is the world's first pilot project
featuring a new building in the new corporate
architecture, with the structure at Dortmund
Airport set for completion by the end of 2020.
A prototype was previously opened in March
2019 in Palm Springs, California. Under the
heading "Destination Porsche", the corporate
architecture is intended to turn Porsche
Centres all over the world into centralised
meeting points for the Porsche Community.
Taycan: employee qualification drive
Electromobility is a real job creator at Porsche,
with the company establishing some 1,500
additional positions by the end of 2019 to
handle the company's first all-electric sports
car in Zuffenhausen - the Taycan. By the
second quarter of 2020, a total of 2,000
positions will have been created, as the manu-
facturing capacities have been increased to
accommodate the high demand. The demand-
ing recruiting process was accompanied by
one of the largest qualification drives in
Porsche's history. This saw employees involved
in Taycan production receiving tailored training
courses lasting up to six months, thus ensur-
ing compliance with typical Porsche quality
standards from the very start.
PORSCHE IS CREATING OVER 2,000 ADDITIONAL JOBS TO HANDLE THE TAYCAN
35
SUV 911
911 CARRERA
Quality management fit for electromobility
and digitalisation
New technologies require new ways of think-
ing and working, not least in quality manage-
ment. In summer 2019, Porsche created
an extensive new qualification programme and
adapted its processes in preparation for its
entry into electromobility. Further drivers are
digitalisation and smart mobility; alongside
emotion, appearance and function, the aspects
of content and software quality are also grow-
ing in importance.
The new 911 Carrera, which
was launched as a coupé and
cabriolet, delivers 283 kW
(385 PS) via its biturbo
three-litre six-cylinder
boxer engine.
911 Carrera Coupé and Cabriolet
Porsche has expanded its eighth-generation
range with the 911 Carrera. This new sports
car, which was launched as a coupe and
cabriolet, is the entry-level 911 model and
generates 283 kW (385 PS) - 11 kW (15 PS)
more than its predecessor - from its three-
litre, six-cylinder boxer engine with twin-turbo
charging. It retains the premium-quality
standard features of the 911 Carrera S
virtually unchanged.
Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
36
In preparation for future developments in mobil-
ity, the Porsche Development Centre Weissach
launched operations at one of the most cut-
ting-edge drive-testing facilities in the automo-
tive industry at the end of June 2019. The facility
features test benches for conventional, hybrid
and electric drives, underlining the sports car
manufacturer's role as a pioneer in the develop-
ment of highly efficient engines.
Michael Kirsch has been CEO of Porsche
Japan since 1 August 2019. His predecessor
Toshiyuki Shimegi had managed the Tokyo-
based subsidiary since 2014, contributing
significantly to Porsche's substantial growth in
Japan over recent years. Kirsch had previously
served as CEO of Porsche Korea for three
years, achieving substantial success in areas
such as car sales, and was formerly Chief
Operating Officer at Porsche China.
PORSCHE
CCCE
كل
Legendary cars in action at Solitude Revival
The Porsche Museum attended the "Solitude
Revival" showcase in late July 2019 with a fleet
of legendary cars. Held on this former race-
track close to Stuttgart, the event took place a
mere 15 kilometres south-west from the main
Porsche plant in Zuffenhausen. Porsche's
entrants included a 550 A Spyder from 1956,
which had also been driven by Hans Herrmann
at the Solitude track that same year, and the
356 B Carrera GTL Abarth (1961) with rally
legend Walter Röhrl at the wheel. As a nod to
the first formula race held at this historic track,
the 1960 718 Formula 2 that John Surtees
took to second place in the 1960 Solitude
Grand Prix was also in attendance. The
Porsche 804 (1962) in which Don Gurney won
the Formula One race two years later was
entrusted to Neel Jani at the 2019 event. Jani's
former teammate Marc Lieb was on the track
in the 1970 917 KH featuring the Gulf team
livery, sharing driving duties with motorsport
icon Hans-Joachim Stuck.
New drive testing facility in Weissach
lanes for entering and exiting the site and large
signs above the lanes to direct traffic.
MARTINI
In April 2009, Porsche entered a new market
segment with the unveiling of the Panamera -
its first grand tourer. This model combines
typical sports car performance with the luxury
and versatility of a touring saloon like no
other car in the automotive luxury class. As
a technology leader for innovations that
have since been adopted in further models,
the Panamera has made quite the mark
on the brand's journey over the last 10 years
and exceeded all expectations, with over
235,000 models delivered to date.
42nd Porsche Tennis Grand Prix
It was seventh time lucky for Czech star Petra
Kvitova in April as she won the Porsche Tennis
Grand Prix in front of a sell-out crowd of
4,400 at the Porsche Arena in Stuttgart. She
defeated Estonia's Anett Kontaveit in an enter-
taining final, picking up not only prize money
and ranking points, but also a Porsche 911
Carrera 4S Cabriolet.
ANETT
KONTAVEIT
SM4215
PETRA KVITOVA
TURKIS
AIRLIN
PORSCHE
10 years of the Porsche Panamera
TENNIS GRAND PRIX
15
15
PETRA
KVITOVA
HE
11 Carrera 4S
Original owner's manuals reprinted
Reprints of more than 700 original owner's
manuals were issued by Porsche Classic.
starting in April 2019. This ensures access
to first-hand documentation for virtually all
early models, starting with the 356 from the
model year 1952 right through to the 911
(type 996). The documents are now available
for order and delivery from all Porsche Centres
worldwide. In addition, a selection of the
technical literature can be ordered directly
from the Porsche Classic online shop. The
documents for older classic Porsche cars in
particular include not only the owner's
manual itself, but also extensive technical
information, settings and practical tips.
Porsche has added a virtual
world championship to its
family of one-make cups,
with the Porsche Esports
Supercup open to the
globe's best sim racers.
Porsche Esports Supercup: the first virtual
one-make cup
Porsche has expanded its one-make motor-
sport series to include a virtual world cham-
pionship: Porsche Esports Supercup. The term
"Supercup" refers to the highest category
of the one-make cup family, underscoring the
internationality and relevance of this online.
race series organised by the sports car manu-
facturer together with iRacing. Its real-life
equivalent has provided the battleground for
the best drivers of the Porsche 911 GT3 Cup
for the past 25 years. A total of 40 "sim racers"
who successfully made their way through
the global qualifying process competed in a
series of 10 online races, with the first held
on 13 April 2019 at the virtual version of Barber
Motorsports Park in Alabama (US). The final
contest took place on 28 September 2019 at
the Monza circuit in Italy, with Josh Rogers
(Australia) being crowned as the overall winner.
The purse of the championship totalled
100,000 dollars.
➤211
51
PORSCHE ESPORTS SUPERCUP
222
Important events
Ⓡ火中欧班列
CHINA RAILWAY Express
Porsche Heritage Design strategy
The 911 Speedster with Heritage Design
package as showcased in mid April 2019 at
the New York Auto Show offered an initial
outlook of the Porsche Heritage Design strategy.
This approach was brought into being by
Porsche Exclusive Manufaktur and the Style
Porsche design department, with the partners
reinterpreting exclusive 911 models featuring
iconographic elements from Porsche cars
dating from the 1950s through to the 1980s.
Equipped with cutting-edge sports car
technology, these special models introduce
the lifestyle dimension - boasting particularly
emotive concepts and references to history
within Porsche's product strategy. Additional
special models will follow at certain intervals
and in limited numbers. Selected elements
from the corresponding decades will also be
available as options for 911 models as part
of Heritage Design packages.
The 911 Speedster
featuring the Heritage
Design package introduces
the lifestyle dimension,
including the most emotion-
ally appealing concepts
with a link to history.
Cooperation with Tongji University, Shanghai
With a new Chair of Intelligent Vehicle Con-
cepts, several research projects on urbanisa-
tion trends in China, and other initiatives,
Porsche and Tongji University in Shanghai have
expressed a desire to strengthen their cooper-
ation in the future. This saw both parties sign a
memorandum of understanding on 17 April
2019. The driving force behind the partnership
with Tongji University to date has been the
subsidiary Porsche Engineering, which was set
up to enable the engineering company and
the School of Automotive Studies to cooperate
on topics from the fields of science, research,
theory, testing equipment and practice.
CAR SHIPMENTS TO CHINA BY RAIL
China deliveries on track
22
Porsche has traditionally relied on trains for
its logistics in Europe. Since April 2019,
the sports car manufacturer has also been
using rail transport for its transcontinental
logistics. This change means that certain
cars intended for the Chinese market will be
exported via the New Silk Road. Thanks to
the 20-day journey by rail, the car logistics
process is up to three weeks shorter than
with maritime freight.
Porsche and Schuler AG have chosen Halle an
der Saale as the site for their joint press plant,
which is to be built on a 13-hectare premises in
the immediate catchment area of the Porsche
Leipzig factory. The sports car manufacturer
and the Göppingen-based forming specialist
aim to incorporate greater flexibility and digital-
isation into the production of car body parts.
Their joint venture, Smart Press Shop GmbH &
Co. KG, is investing more than 100 million
euros in this project and creating 100 jobs
in the process. Construction began in the
second half of 2019 and the press plant is set
to commence operations in 2021.
21
21
PU
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
PRESS PLANT FOR BODY PARTS
MATERIALS FEATURED IN THE HERITAGE DESIGN PACKAGE
New press plant in Halle an der Saale
PORSCHE 935 (2019)
Important events
24
According to the investigation results of the
Stuttgart Public Prosecutor's Office, negligent
breaches of supervisory duties occurred in a
department of the division for development
several levels below the Executive Board in
the exhaust gas-related testing of vehicles in
relation to their regulatory conformity. Accord-
ing to the Stuttgart Public Prosecutor's Office,
the violations of supervisory duties were
contributory to partial deviations of Porsche
vehicles from regulatory requirements in
the period from 2009.
Porsche AG did not file appeal against the
fine notice for negligent breach of duty.
The procedure against Porsche AG was there-
fore concluded. This represents another
important step towards the resolution of the
diesel issue.
New infrastructure at the Development Centre
Following a construction period of 22 months,
the north entrance of the Porsche Develop-
ment Centre Weissach entered into operation
on 4 June 2019. Covering 1,300 square
metres across two storeys, this new building
houses factory security, the visitor reception
and the ID office under a single roof. It ensures
easier access to the centre, particularly for
suppliers and visitors. Access to the Develop-
ment Centre is also easier thanks to three
Important events
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
28
718 Spyder and 718 Cayman GT4
In May, the Stuttgart Public Prosecutor's
Office comprehensively ends its administrative
offence proceedings against Porsche in con-
nection with deviations from regulatory
requirements for certain cars by issuing a fine
notice. The notice provided for a fine totalling
535 million euros, consisting of a penalty in the
amount of four million euros for negligent breach
of duty by Porsche AG and a levy on economic
benefits in the amount of 531 million euros.
The amount of the levy share depends largely
on the profitability of the company.
The 718 family gained two members in mid
June 2019 with the new 718 Spyder and
the 718 Cayman GT4 - a pair of particularly
emotive and powerful models. Their puristic
character appeals to sports car enthusiasts
who delight in unadulterated driving pleasure,
appreciate a high level of agility and enjoy
feeling the thrill of raw driving power. The
perfectly balanced mid-engine layout offers all
of this. For the first time ever, the open-top
718 Spyder and the hardtop 718 Cayman GT4
share the same technical base. This includes
the newly developed four-litre, six-cylinder
naturally aspirated engine, together with a
six-speed manual gearbox. The boxer engine
generates 309 kW (420 PS) in both models.
While the GT4 represents the entry-level
GT road car from Porsche, the Spyder lends
itself to all kinds of curves. Both rely on highly
S.PY 718
PRO
258
CHOPARD
The Project 1 customer
squad won the GTE Am class
while also claiming the
drivers' and team champion-
ship titles. Now with
108 class wins, Porsche
has cemented its position
as the most successful
manufacturer in the history
of Le Mans.
Porsche wins all GT titles
Porsche works drivers Michael Christensen
and Kévin Estre took the drivers' world crown
at the FIA World Endurance Championship.
This successful Danish and French duo shared
driving duties in the no. 92 Porsche 911 RSR
with Belgian Laurens Vanthoor at the final
race of the season from 15 to 16 June 2019,
scoring enough points in the 24 Hours of
Le Mans to clinch the title. Porsche had already
claimed the manufacturers' championship
prior to the endurance classic. The Project 1
customer squad won the GTE Am class while
also claiming the drivers' and team champion-
ship titles. Now with 108 class wins, Porsche
has cemented its position as the most
successful manufacturer in the history
of Le Mans.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
PORSCHE
efficient aerodynamics, a full GT chassis and
powerful brakes.
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Conclusion of administrative
offence proceedings
88 TO 902
24
Limited-edition 911 Speedster
In May 2019, Porsche brought the 911
Speedster to the road. This open-top two-
seater combines the demands of a puristic,
driver-oriented car with motorsport
technology suitable for everyday use. The
911 R and 911 GT3 served as the basis
for development. A 375 kW (510 PS)
four-litre naturally aspirated boxer engine
delivers an emotive sound experience in the
cockpit and the six-speed GT transmission
is shifted manually. Visually, the new
Speedster establishes a bridge to its own
history - to the forebear of all Porsche sports
cars, the 356 "No. 1" Roadster from 1948.
The limited-edition new 911 Speedster is
also reminiscent of this car. Production
of a run of exactly 1,948 units began in mid
2019 at the main plant in Zuffenhausen and
continued to year's end. As a concept car,
the 911 Speedster celebrated its world pre-
miere in 2018 at the 70 Years of Porsche
Sports Cars ceremony.
48
PORSCHE
STUTICORI
20 years of the Porsche product line
In May 1999, Porsche introduced an innova-
tive structure for its car projects: product
line organisation. It has long been regarded
throughout the industry as a model of efficien-
cy and flexibility. The product line coordinates
a car family over its entire life cycle - from
concept through to development, production,
sales, production support and the end of
production. What makes this approach special
is that each product line operates like a com-
pany within a company, with each reporting
directly to the Chair of the Executive Board.
The concept set a precedent, as Volkswagen
also introduced product line organisation in
2016; other companies have also adopted this
principle. Maintaining efficient organisation
along the value chain is a key success factor
for Porsche.
NEW INFRASTRUCTURE IN WEISSACH
Originally launched in 1969
a German manufacturer,
the iconic Porsche 914
enjoyed a special Porsche
Museum exhibition to mark
its 50th anniversary.
Investment in Cetitec
Porsche acquired a majority stake in
Pforzheim-based software company Cetitec.
With this move, the sports car manufacturer
has responded to the ever-increasing import-
ance and growing complexity of software and
electronics in cars. Cetitec was spun off from
Karlsruhe-based K2L GmbH in 2012 and
currently employs around 100 staff, specialis-
ing in platform software development in
the automotive sector. Porsche and Cetitec
already enjoy a long-standing partnership.
50 YEARS OF THE PORSCHE 914
27
50 years of the Porsche 914
With the Porsche 914 turning 50 in 2019,
Porsche celebrated this 1970s icon via a
series of dedicated events. Originally launched
in 1969 as the first series-produced mid-
engine sports car from a German manufacturer,
it was the subject of a major summer retro-
spective at the Porsche Museum featuring
12 spectacular exhibits. Porsche Classic also
paid tribute to the 914 at classic car fairs
and events throughout the year.
as the first series-produced
mid-engine sports car from
expre
60
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Strategic partnership with SAP
50
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Important events
HOLGER GERRMANN
49
40
At the IMSA WeatherTech SportsCar Cham-
pionship, the Porsche GT Team came away
with wins for manufacturer, driver and team.
In the final race of the season at Road Atlanta
(US) in mid October 2019, the two Porsche
911 RSRs featuring the Coca-Cola livery
finished fifth and sixth. This marked the 50th
and final works outing for the successful
GT car from Stuttgart, which won six of the
11 rounds on the 2019 IMSA calendar.
The Porsche works drivers Earl Bamber (New
Zealand) and Laurens Vanthoor (Belgium)
won the drivers' crown, with the team title
going to the squad behind the no. 912 Porsche
911 RSR. In the GTD class, the Pfaff Motor-
sports customer team finished on the podium
with the no. 9 Porsche 911 GT3 R.
Porsche wins all titles at the IMSA Weather-
Tech SportsCar Championship
Porsche opened its seventh Porsche Experience
Centre (PEC) worldwide at the Hockenheim-
ring as part of a "Sportscar Together Day" on
12 and 13 October 2019. Covering an area of
around 170,000 square metres, the premises
at the heart of the racetrack is a new hub
for customers and fans from all over Europe. It
boasts a Customer Experience Centre, hand-
ling course, driving dynamics areas and an
off-road track. The opening weekend attracted
around 70,000 visitors, 9,000 of whom arrived
in their own Porsche cars. The eighth Porsche
Experience Centre, which is being built along-
side the racetrack in Franciacorta (Italy), will
be the largest PEC to date. Under the steward-
ship of Porsche Italia, the renovation of the
circuit and the construction of the new cus-
tomer centre began in the reporting year. The
opening is planned for early 2021.
Hockenheimring Porsche Experience Centre
now open
Cooperation with Boeing for urban air mobility
Porsche and Boeing have signed a memo-
randum of understanding to tap into the
premium urban air mobility (UAM) market. This
partnership will see both companies leverage
their unique market strengths and insights to
study the future of premium urban air mobility
vehicles. Additionally - together with Aurora
Flight Sciences, a subsidiary of Boeing - they
are developing a concept for a fully electric
vehicle boasting vertical take-off and landing.
Engineers from both companies, as well as
the Porsche subsidiaries Porsche Engineering
Services GmbH and Studio F.A. Porsche,
will implement and test a prototype.
PORSCHE AND BOEING TO COLLABORATE IN THE PREMIUM URBAN AIR MOBILITY MARKET
PORSCHE
PORSCHE
Porsche and the Japanese video games devel-
opment studio Polyphony Digital Inc. have
furthered their collaboration. During the Inter-
national Motor Show (IAA), the partners
announced the launch of two new cars - the
Taycan Turbo S and the design study 917
Living Legend in the Gran Turismo Sport
video game developed exclusively for the Play-
Station 4 console. Porsche designers are also
developing a study as part of the Vision Gran
Turismo project, which will be realised as a
virtually drivable car and is set for release by
the end of 2020. Polyphony Digital Inc. is a
subsidiary of Sony Interactive Entertainment.
Extended partnership with Polyphony
Digital Inc.
Porsche rounded off the
IMSA WeatherTech Sports-
Car Championship with a
bang by decorating its cars
in a Coca-Cola livery for
the final race of the season.
The works team of the
sports car manufacturer
joined forces with the global
drinks giant for the 10-hour
Petit Le Mans race at
Road Atlanta (US) in mid
September 2019.
Holger Gerrmann took over as CEO of Porsche
Korea on 16 September 2019. Gerrmann had
formerly spent two years as Financial Director
at Porsche Design following nine years as
Financial Director at Porsche Cars Great Britain
and the Porsche Retail Group. A law graduate,
he has also previously served in Porsche's
financial department and as assistant to the
CEO of Porsche AG.
New CEO at Porsche Korea
Spectacular cooperation of two global brands
Porsche ended the IMSA WeatherTech Sports-
Car Championship with a bang by decorating
its cars in a Coca-Cola livery for the final race
of the season. The works team of the sports
car manufacturer joined forces with the global
drinks giant for the 10-hour Petit Le Mans
race at Road Atlanta (US) in mid September
2019. The two Porsche 911 RSRS lined up on
the grid sporting the red background and
white lettering of the American beverage com-
pany. In this way, the two companies honoured
their shared successes throughout motor-
sport history and added a special highlight to
conclude the 50th anniversary year of the
International Motor Sports Association (IMSA).
Porsche racing cars featuring Coca-Cola
designs have enjoyed an illustrious history in
the North American motorsport scene dating
back to the 1980s.
911 RSR IN COCA-COLA DESIGN
On 14 September 2019, some 3,200 Porsche
employees took part in the fifth edition of the
six-hour run at the company's Zuffenhausen
facility. Porsche donated five euros per com-
pleted lap and generously rounded up the final
total to 200,000 euros. The Porsche Six-hour
run is a relay event, with employees forming
teams and running laps at the company's main
plant in Zuffenhausen on a special course
measuring exactly 911 metres - as a nod to
the iconic Porsche 911 sports car. Since
its inception in 2015, this event has already
raised 935,000 euros for good causes.
Six-hour run raises 200,000 euros for Ferry
Porsche Foundation
CHOPARD
MICHELIN
CowCola
DZZ
48
Porsche and SAP entered into a strategic
partnership in October 2019. The sports car
manufacturer has successfully used products
from the Walldorf-based software company
for several decades now. With both partners
looking to benefit even more from the expertise
and experience of the other in future, the two
companies aim to jointly develop new solutions
for the digital transformation. This strategic
partnership focuses on data-driven business
models, artificial intelligence and an end-
to-end process-driven architecture. It is not
just about developing new ideas, however:
existing projects will also be integrated into
the collaboration.
Digitalised car sales on the German market
In late October 2019, the company teamed
up with the 88 German Porsche Centres to
open its own digital sales channel for immedi-
ately available new and pre-owned cars. The
sports car manufacturer will develop this into
a marketplace for Porsche-specific mobility
products and services. Customers can now
perform the most important steps for car
purchase and leasing online - whenever and
wherever. Only customer authentication
and the final conclusion of the contract will
initially still take place at the Porsche Centre.
Investment in Israeli start-up Tactile Mobility
Porsche has intensified its collaboration with
technology company Tactile Mobility through
a minority investment. Based in Haifa, Israel,
this company is a leader in the field of tactile
data. In addition to Porsche, Union Tech
Ventures and existing investors are participat-
ing in the current investment round. Tactile
data simulates a sense of touch, with an
algorithm helping to process the data provided
by various sensors. Beyond these measure-
ments, the Tactile Mobility method helps
collect additional information on the condition
Taoyuan - Taiwan's aviation capital - is now
home to an additional Porsche Studio, which
opened in December 2019. The first of its
kind in this market, and the fifth in Asia, it
is located in the Taoyuan Art Plaza, an artistic
neighbourhood where extraordinary works
meet local art collectors. The sports car manu-
facturer had already opened Porsche Studios
in Bangkok, Thailand, in March and in Seoul,
South Korea, in June, making a total of nine
Porsche Studios around the world. They are
part of the Future Retail strategy of Porsche
with their locations in city centres and at
urban hotspots.
Porsche Studio opens in Taiwan
At Porsche, economic success and social
responsibility go hand in hand, so the company
always makes a conscious effort to always
take on a leading role in areas such as sustain-
ability. Together with the Volkswagen Group,
Porsche has been a core member of the
value balancing alliance e.V., headquartered in
Frankfurt am Main, since 2019 - the first
car manufacturer to do so. The objective of
this alliance, which crosses several industries,
is to develop a standard that makes value
propositions of companies visible in a human,
social and financial regard and that assesses
the consequences for society and the
environment.
Porsche becomes core member of
value alliance
Porsche expands sales pop-up concept
Porsche has expanded sales efforts through
the use of flexible sales pop-ups. Taiwan was
the first market to feature the sales pop-up
as a rolling concept. This time-limited outlet
has operated in the busy centre of Taipei since
early October 2019 under the name "Porsche
NOW". In addition to the exhibited cars, visitors
were able to sample the Porsche Drivers
Selection, Exclusive Manufaktur Parts, Virtual
Reality experiences and the private Configur-
ation Lounge. Porsche has been using sales
pop-ups since 2018, and the basic concept is
made available to its local sales companies
and therefore also the local dealers. Sales pop-
ups are installed in high-traffic locations,
flexibly and at short notice, in order to interact
even more directly with the customer and to
access new target groups.
53
62
52
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Important events
SUCCESSFUL START IN FORMULA E
51
PORSCHE
LOT
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Mobil
anje everything
First and second at third WEC race
Porsche expanded its overall lead with first-
and second-place finishes at round three of
the FIA World Endurance Championship
(WEC) in mid November 2019. Reigning world
champions Kévin Estre (France) and Michael
Christensen (Denmark) started on pole in the
new Porsche 911 RSR, finishing second in
the four-hour race at Shanghai International
Circuit in November 2019 to retain the top
spot in the drivers' standings. Italy's Gianmaria
Bruni and Austria's Richard Lietz crossed
the finish line in third place in their 911 RSR.
When the winning Ferrari was subsequently
disqualified, the Porsche GT Team was ultim-
ately rewarded with first and second place.
Porsche made a successful start to its debut
season in Formula E, with German works driver
André Lotterer powering his way to second
place at the first race of the 2019-20 ABB FIA
Formula E Championship in Diriyah. Overall, this
marked an encouraging debut for Porsche in
the fully electric race series. Having immediate-
ly challenged the front runners with its race
pace, the company gave itself much to build on
at upcoming contests throughout 2020.
Porsche was further buoyed by the Formula E
Fanboost, with Lotterer voted into the top five
on both days and thus receiving 100 kilojoules
of additional energy in each race.
Porsche on the podium: second place at
Formula E debut
The Taycan has also heralded a new era for
Porsche Financial Services: it now offers
services for electric vehicles in addition to the
established insurance for motor vehicles.
The "Porsche CarPolicy" has been expanded to
incorporate the "Taycan Policy", which includes
special cover for batteries and charging sta-
tions. With a view to the Taycan launch, the
digital insurance package "Porsche Shield" has
also been expanded - now "E-Cover" can be
booked to include additional insurance com-
ponents to an existing car insurance policy.
This makes it easier for customers to switch
to an e-performance model. "E-Cover" is not
only available for the new Taycan, but also
for the plug-in hybrid models of the Cayenne
and Panamera model series. Based in
Bietigheim-Bissingen, Porsche Financial
Services is a wholly owned subsidiary of
the sports car manufacturer.
Insurance packages for electromobility
Rudolph came to Porsche from industrial
service provider Bilfinger, where he was in
charge of the Corporate Communications &
Public Affairs division. Prior to that, he spent
more than six years as head of communica-
tions at the Federal Ministry of Transport and
Digital Infrastructure (formerly the Federal
Ministry of Transport, Construction and Urban
Development). After earning his PhD in politi-
cal science, he began his professional journey
with seven years as a TV journalist for ARD,
Bayerischer Rundfunk and n-tv.
able mobility.
Sebastian Rudolph named Vice President
Communications, Sustainability and Politics
Dr Sebastian Rudolph became Vice President of
Communications at Porsche effective 1 Novem-
ber 2019, with two additional fields taking
on greater importance at the same time: rela-
tionships with policymakers and associations
as well as the topic of sustainability will
now be given the same level of attention as
traditional public and press relations work.
Accordingly, the division now bears the title of
Communications, Sustainability and Politics.
Tradition, innovation, pioneering spirit, passion:
as the interface between the company and
the public, these are the values with which
communications accompanies the transform-
ation of Porsche, as characterised by the
Taycan. The fully electric sports car marks the
beginning of a new era for Porsche - it unites
the history of the brand with its future and
defines the company as a pioneer of sustain-
Tradition, innovation, pion-
eering spirit, passion:
these are the values through
which Porsche communi-
cates the transformation
of the company, as charac-
terised by the Taycan.
SEBASTIAN RUDOLPH
as predictive servicing and the optimisation
of battery management.
into series production cars from the early
2020s. It also has potential for aspects such
of vehicles and roads. It is set for integration
36
New brand ambassadors: Jörg Bergmeister
and Timo Bernhard
Important events
MACAN TURBO
e
ANSYS
HEUER
on the path towards its works entry in the
2019-20 ABB FIA Formula E Championship.
The company took a novel approach to this
premiere, choosing a live video game as the
virtual platform and including an international
gaming community using the streaming
service Twitch. Drivers André Lotterer and
Neel Jani rounded off the event with the
unveiling of the new racing car.
99X Electric is Porsche's Formula E entry
Porsche's presentation of the 99X Electric on
28 August represented a further milestone
42
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
CHOPARD
Mobil
36
ROL
92
LOTTE TAYCAN
MICHELIN
Dan
192
CHOPARD
bil
Important events
911 RSR
WE
TAYCAN ON THE NÜRBURGRING NORTH LOOP
The new Porsche 911 RSR (2019 model year)
enjoyed a perfect start by securing first- and
second-place finishes at its debut race in early
September. At the season-opening round
of the FIA World Endurance Championship in
Silverstone, Italy's Gianmaria Bruni and
Austria's Richard Lietz crossed the finish line
first in the no. 91 car. Reigning world cham-
pions Michael Christensen (Denmark) and
Kévin Estre (France) claimed second place in
the no. 92 sister car. This double triumph was
powered by perfect tactics from the world
champion team, strong driving performances,
swift pit stops and a reliable car.
First and second for 911 RSR on debut
at Silverstone
Taycan takes North Loop record
Porsche set a new standard for four-door
all-electric sports cars at the Nürburgring
North Loop on 26 August 2019, with test
driver Lars Kern taking a pre-series Taycan
around this legendary track in a mere seven
minutes and 42 seconds. This remarkable
lap time, which covered the 20.6-kilometre
course typically used for record attempts,
underlines the Taycan's racetrack pedigree
- which even the series model features.
41
Macan Turbo is the new flagship model
The new Macan Turbo now sits atop the
Porsche compact SUV model range. This
extensively reworked top model features a
new 2.9-litre, six-cylinder, biturbo engine
delivering 324 kW (440 PS), equating to 10
per cent more power output than its prede-
cessor with 20 per cent less displacement.
With the optional Sport Chrono package, the
car can go from zero to 100 km/h in 4.3 sec-
onds - three-10ths faster than before. Top
speed is 270 km/h - an increase of 4 km/h.
Braking performance has also been improved:
the optimised chassis of the new Macan Turbo
features the powerful Porsche Surface Coated
Brake (PSCB) as standard.
TAG Heuer and Porsche announced a long-term
Formula E cooperation in late August 2019,
with the Swiss luxury watchmaker being
named Title and Timing Partner. The Porsche
works entry in the 2019-20 ABB FIA Formula
E Championship will bear the name TAG Heuer
Porsche Formula E Team. Both brands can
look back on a proud history of shared success
in the world of motorsport. One highlight
for Porsche is the TAG Turbo made by Porsche,
which powered Formula One cars in the
1980s while taking two Constructors' World
Championships in 1984 and 1985 as well as
three Drivers' World Championships from
1984 to 1986.
TAG Heuer partners up with Porsche
Formula E team
Porsche mourns Ferdinand Piëch
Ferdinand Piëch, a former member of the
Porsche AG Supervisory Board, died on
25 August 2019 at the age of 82. Oliver Blume
paid tribute to this outstanding engineer and
manager, noting how his love of cars, his con-
stant desire to promote technical progress
and his ability to seize the ideal moment saw
him put in years of remarkable service as an
engineering expert at Porsche. Piëch also took
a number of key strategic decisions that laid
the groundwork for the company's successful
development.
FERDINAND PIËCH (LEFT) AND FERRY PORSCHE
FORMULA-E
TAG Heuer
TAG
TAGH
S
MACAN
In early September 2019, Porsche increased
its stake in the technology and sports car
company Rimac Automobili to 15.5 per cent.
Croatia-based Rimac develops and manu-
factures electromobility components and
also produces electrically powered supercars
in-house. Porsche initiated a development
partnership with the company in the wider
context of its electromobility campaign and,
in June 2018, acquired a 10 per cent
shareholding in Rimac.
Porsche increases stake in Rimac
As part of the Taycan media presentation in
Oslo, Aksel Lund Svindal - the successful
Norwegian ski racer - was announced as the
new Porsche brand ambassador. The excep-
tional sportsman and athlete with two Olympic
victories, five world championships and two
overall world cup wins represents not only
sporting performance at the highest level, but
also endurance, hard work and driven perform-
ance. Svindal is beloved, down to earth and
a huge fan of Porsche. He has also been a
passionate advocate for sustainability and
the environment since the end of his athletic
career, which makes him a perfect brand
ambassador for Porsche and its values.
Aksel Lund Svindal becomes Porsche
brand ambassador
The Taycan redefines
Porsche while embodying all
the brand values established
through 70 years of sports
car construction.
911 Carrera 4 Cabriolet with 283 kW
(385 PS) extending the product range of the
model series. Other highlights included three
new hybrid models in the Cayenne series:
the Cayenne E-Hybrid Coupé with a system
output of 340 kW (462 PS) plus the Cayenne
Turbo S E-Hybrid as Cayenne and Cayenne
Coupé featuring 500 kW (680 PS). The flag-
ship model of the compact SUV line, the
Macan Turbo, also made its motor show debut.
In addition, Porsche presented the company's
entry for the ABB FIA Formula E Championship
starting in November 2019: the Porsche
99X Electric.
New additions to the 911 family were also
announced at the start of the IAA, with the
all-wheel drive 911 Carrera 4 Coupé and
Eight new cars at the IAA in Frankfurt
Porsche presented a total of eight new cars
at the 68th International Motor Show (IAA)
in Frankfurt am Main, Germany. The focus
was on the debut of the brand's first all-elec-
tric sports car models, the Taycan Turbo
and Turbo S. "The Taycan redefines Porsche,"
said Oliver Blume, Chair of the Executive Board
of Porsche AG. "Our goal was to usher in the
era of electromobility for Porsche with the
sportiest, most innovative and most emotion-
ally charged of cars. The Taycan embodies all
our values and the experience we have gained
from more than 70 years of manufacturing
sports cars." At the time the IAA was held,
30,000 prospective customers has expressed
their concrete interest in the Taycan. Of those,
10,000 had already resulted in purchase
agreements by the end of 2019.
A
TAYCAN
DER NEUE
46
A TOTAL OF EIGHT NEW CARS AT THE IAA IN FRANKFURT
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
46
45
"We have a level of responsi-
bility to the environment and
society. Production of the
Taycan is already carbon-
neutral. At our main plant in
Zuffenhausen, which is the
heart of the brand, we com-
bine our heritage with the
future," said Oliver Blume.
The three continents featured in the simultan-
eous world premiere are the most important
sales markets for this new electric sports car.
The venues also represent three approaches
to sustainable energy management: Niagara
Falls on the border between the US state of
New York and the Canadian province of Ontario
represents hydropower. The solar farm in
Neuhardenberg near Berlin represents solar
power. And the wind farm on Pingtan Island,
around 150 kilometres from the Chinese
city of Fuzhou in the province of Fujian, repre-
sents wind power. This unique triple event
was broadcast worldwide via live stream on
NewsTV.porsche.com.
of this sports saloon in mid October. The first
derivative to be added will be the Taycan Cross
Turismo, pegged for late 2020.
Spectacular simultaneous
world premiere in North
America, China and Europe:
in early September 2019,
Porsche wowed the world
with its first all-electric
sports car. The Taycan links
the brand's heritage to its
future.
Porsche presented its first all-electric sports
car to the public in early September 2019
with a spectacular world premiere which took
place simultaneously in North America, China
and Europe. The Taycan links the brand's
heritage to its future. This four-door sports
saloon is a unique package, combining typical
Porsche performance and connectivity with
everyday usability. At the same time, highly
advanced production methods and the features
of the Taycan set new standards in the fields
of sustainability and digitalisation. The first two
models are the Taycan Turbo S and Taycan
Turbo. They are at the cutting edge of Porsche
E-Performance and are amongst the most
powerful production models offered by the
sports car manufacturer. The Taycan 4S was
subsequently introduced as the third version
Porsche Taycan world premiere
TAYCAN ENJOYS SIMULTANEOUS WORLD PREMIERE IN CHINA, EUROPE AND NORTH AMERICA
the city: "Where others just talk, Porsche acts."
Andreas Scheuer, Federal Minister of Transport
and Digital Infrastructure, was there in
person: "Electromobility is creating around
1,500 new jobs in carbon-neutral production
here in Zuffenhausen. Porsche is therefore
making an important statement about electric
driving and German engineering." Winfried
Kretschmann, Minister-President of Baden-
Württemberg, added: "The Porsche Taycan
shows that the mobility revolution is taking
place right here, right now in Baden-Württem-
berg." Fritz Kuhn, Mayor of Stuttgart, welcomed
Porsche's investment as a major positive for
Punctual production start for Porsche Taycan
On 9 September 2019, Porsche celebrated the
opening of the new production facility for the
Taycan in Zuffenhausen. The event, following a
construction period of less than 48 months,
was attended by guests from politics, business
and the media. Customer cars are assembled
in a factory of the future - flexibly, net-
worked and using 4.0 production technology.
It is a further step towards the zero-impact
factory, which is free from any negative
environmental impact. "We have a level of
responsibility to the environment and society.
Production of the Taycan is already carbon-
neutral. At our main plant in Zuffenhausen,
which is the heart of the brand, we combine
our heritage with the future," explained Oliver
Blume, Chairman of the Executive Board of
Porsche AG. This new Porsche plant reflects
the brand's tradition while also sending a clear
signal about its new directions, as demon-
strated by the production of the pioneering
Taycan in the legendary surroundings of
Zuffenhausen.
PORSCHE
1
Important events
Two successful motorsport enthusiasts as
Porsche brand ambassadors: Timo Bernhard,
Le Mans overall winner and two-time world
champion, and "Mister 911", Jörg Bergmeister,
both took up their new roles right after ending
their careers as works drivers. During their
extremely long careers as Porsche works
drivers and with various racing cars, the two
raked in countless podium finishes for
the brand, thus playing a key role in shaping
the public perception of Porsche. Jörg
Bergmeister's successes include victories at
the major endurance classics Le Mans, Daytona,
Sebring, Nürburgring, Petit Le Mans and Spa.
Timo Bernhard is the only works driver to
date who, over the course of his long career,
became a champion in all categories of the
Porsche pyramid - even winning the world
championship in the 919 Hybrid.
The new cars at the IAA reflected Porsche's
product strategy, which focuses on three drive
technologies: highly emotive petrol engines,
powerful plug-in hybrids and all-electric drives.
GT Challenge
Latin America: stability in a volatile region
In Latin America (excluding Brazil), Porsche
was able to keep deliveries stable in spite of
the volatile economic climate. A total of 2,925
vehicles were delivered throughout the region.
At 20 per cent, the Cayenne recorded the
strongest growth and was also the most suc-
cessful model, with 1,382 vehicles handed
over to customers. It was followed by the
Macan with 17 per cent growth and 757 deliv-
eries. Porsche delivered 467 of the 911 to
customers in Mexico, Central and South
America. There were 216 vehicles in the case
of the 718 Boxster and 718 Cayman and
103 vehicles for the Panamera. The largest
markets in the region continued to be Mexico,
Chile and Puerto Rico, representing 66 per cent
of the region with 1,938 vehicles delivered.
58
+10%
Year-on-year comparison
Important events
115,939
Asia-Pacific, Africa
and Middle East
75,367
America
89,494
Europe
Deliveries in 2019
2017 2018 2019
2016
2015
280,800
0
50
100
150
200
225,121
237,778
250
246,375
256,255
of new vehicles
Deliveries
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Brazil: growth of almost 30 per cent
Porsche's subsidiary in Brazil had a particularly
strong year. All model ranges were growing.
Deliveries rose again by 28 per cent to 1,849 in
the year under review. The Cayenne was a par-
ticularly strong performer with 575 vehicles
and an increase of 66 per cent. For the Macan,
a total of 495 vehicles were delivered, repre-
senting an increase of 16 per cent. Other mod-
el series also produced impressive figures:
Porsche delivered 352 vehicles of the 718
model series, corresponding to 28 per cent
more than in the previous year. The demand for
the 911 increased by 13 per cent to 238
vehicles. Last but not least, the Panamera was
also well received by Brazilian customers with
189 units and an increase of two per cent.
Europe
Europe region (Germany excluded): strong
increase in deliveries
In Europe, Porsche achieved particularly high
growth in 2019: a total of 57,876 vehicles
were delivered. This represents an increase of
15 per cent compared with the best result so
far of the previous year. The Cayenne was a
strong performer here with 18,025 vehicles
handed over to customers, corresponding to
an increase of 38 per cent compared with
2018. The Macan remained the most success-
ful model with 19,807 vehicles delivered,
representing an increase of 27 per cent. The
number of Porsche 911 models handed over
to customers rose by six per cent to 9,603
units. A total of 5,549 Panamera vehicles were
delivered. Of this, 38 per cent was accounted
for by the Sport Turismo. There were 4,892
deliveries of the 718 Boxster and 718 Cayman
mid-engine sports cars. The plug-in hybrid
vehicles were again especially popular.
Porsche wins all titles in Intercontinental
Important events
59
Panamera cars.
per cent of
70
a plug-in hybrid model.
The proportion of
E-Hybrid models was
high across Northern
Europe, Benelux
and Austria, accounting
for 58 per cent of
Cayenne units and
great demand on a
number of markets,
with 80 per cent of
Panamera customers in
France and 79 per cent
in Italy opting for an
E-Hybrid. One-third of
Cayenne customers in
Switzerland also chose
Innovative drives are in
China: remains highest-volume market
In 2019, China remained Porsche's high-
est-volume single market. A total of 86,752
vehicles were delivered, representing
growth of eight per cent. The largest share was
attributable to the Macan, of which 34,619
vehicles were delivered to customers. This
corresponds to an increase of 26 per cent. A
total of 32,683 Cayenne vehicles and 13,170
Panamera vehicles were delivered to customers
(an increase of four per cent). The two-door
sports cars were also well received by custom-
ers. 4,866 vehicles of the 718 Boxster and
718 Cayman models were delivered. A total of
1,414 units of the 911 were delivered.
Asia
Northern Europe (including Benelux and
Austria): E-Hybrids particularly in demand
In 2019, 9,734 vehicles were delivered in this
market area, 1,376 in Austria alone. The
strongest growth was recorded by the Macan
with 3,024 units representing an increase of
40 per cent. Deliveries of the Cayenne also in-
creased: 2,615 vehicles were handed over to
customers. This corresponds to an increase of
eight per cent. With 2,109 units, the Porsche
911 deliveries accounted for a strong 22 per
cent of total sales in the market area. A total of
1,275 Panamera vehicles and 711 vehicles
of the 718 Boxster and Cayman models were
delivered. The share of E-Hybrid models is
unusually high. For the Cayenne it is 58 per
cent and 70 per cent for the Panamera. At
53 per cent, the Sport Turismo version of the
Panamera was particularly popular.
In Russia, Porsche also had a very successful
year. In 2019, 6,023 vehicles were delivered
to Russian customers - 18 per cent more than
in the previous year. The Cayenne was particu-
larly in demand with 3,666 units, representing
an increase of 29 per cent. The Macan's share
increased by 12 per cent with 1,622 vehicles.
A total of 455 customers chose a Panamera.
Of the 911 models, 204 vehicles were
delivered. Some 76 customers received their
718 Boxster or 718 Cayman.
Russia: Cayenne and Macan achieve
double-digit growth
130 Taycan units that
have already been
delivered.
In the year under review, Porsche delivered
7,024 vehicles to customers in Central and
Eastern Europe. This corresponds to an in-
crease of 12 per cent. It is the tenth consecu-
tive year of growth in the region. The most
popular model in Central and Eastern Europe is
the Cayenne with 2,587 units, representing an
increase of 21 per cent. The Macan achieved
growth of 33 per cent. A total of 2,550 cus-
tomers opted for this model. The Panamera
was delivered 873 times, while 684 units of
the 911 and 330 units of the mid-engine
sports cars 718 Boxster and 718 Cayman
were handed over to customers.
Porsche delivered 3,722 vehicles in Switzer-
land last year and thus rose by 11 per cent
compared with the previous year. The most
popular model was again the Macan with
1,415 vehicles. This corresponds to an in-
crease of 32 per cent. A total of 897 Cayenne
vehicles were delivered, representing a 33 per
cent increase over the previous year. Of these,
33 per cent were plug-in hybrid models. Porsche
Switzerland delivered 854 vehicles of the
911 sports car icon. 315 customers received
a Panamera. Porsche handed over 241 of the
718 Boxster and 718 Cayman mid-engine
sports cars to its Swiss customers, which rep-
resents a significant increase of 30 per cent.
Switzerland: Macan still popular
The number of Porsche vehicles delivered in
Spain and Portugal in 2019 amounted to
3,542 vehicles, representing growth of
19 per cent compared with the previous year.
The most successful model was the Macan
with 1,379 vehicles delivered, an increase of
15 per cent. Demand for the Cayenne was ex-
tremely positive, making it the most popular
model in Portugal and the second most popu-
lar model in Spain. A total of 1,055 vehicles of
this model and thus 64 per cent more than
in 2018 were handed over to customers. The
Panamera was delivered 509 times, and the
911 422 times. There were 177 deliveries of
the 718 models.
Spain/Portugal: high growth rate for
the Cayenne
or more than half, were delivered as a Sport
Turismo. The proportion of the E-Hybrid
Cayenne models has doubled from 16 per cent
in 2018 to 32 per cent in 2019.
in 2019: a total of
57,876 cars were
delivered by the company,
corresponding to a
year-on-year increase of
15 per cent. Porsche
delivered 31,618 cars
in its home market
of Germany (also up
15 per cent). Here,
the Macan enjoyed a
stunning 40 per cent
increase to 9,027 units.
In Europe (excluding
Germany), Porsche
achieved particularly
substantial growth
Italy: Macan remains most popular model
In Italy, Porsche increased the number of its
deliveries by 28 per cent to 6,710 vehicles in
2019. The Cayenne in particular enjoyed
strong growth of 52 per cent to 1,596 vehicles.
The Macan remains the most popular model in
Italy. 2,917 units of this model were handed
over to customers (an increase of 40 per cent).
Demand for the 911 also remained strong:
1,177 vehicles were delivered. This corres-
ponds to an increase of 20 per cent. A total of
541 Italian customers opted for a Panamera.
479 buyers received their 718-series mid-
engine sports car. 79 per cent of Panamera
customers chose the E-Hybrid. 54 per cent,
Cayenne, 62 per cent opted for a hybrid, while
for the Panamera this figure was 80 per cent.
In France, deliveries rose by 17 per cent in
2019. Porsche delivered a total of 5,756 vehi-
cles to customers. At 1,912 units, the Macan
was again the most popular model, represent-
ing a 27 per cent increase over the previous
year. This was followed by the Cayenne with
1,539 vehicles delivered (an increase of 53
per cent). The 911 again achieved growth of
eight per cent to 1,217 vehicles. Among the
four-door sports cars, the E-Hybrid versions
were particularly popular. In the case of the
France: Panamera with 80 per cent
hybrid share
In 2019, the United Kingdom was Porsche's
fourth-largest market. Deliveries to British
customers in 2019 rose by 23 per cent to
15,365 vehicles. The 911 sports car icon
achieved growth of 22 per cent, with 2,936
units delivered to customers. The Macan re-
mained the most successful model with 4,988
vehicles delivered (an increase of 18 per cent).
This was followed by the Cayenne with 4,070
units, representing an increase of 83 per cent.
The 718 models also remained popular,
with 2,422 units of the mid-engine sports
car handed over to customers. A total
of 949 Panamera vehicles were delivered.
United Kingdom: significant growth
Germany: an increase of 15 per cent
Central and Eastern Europe: tenth consecutive
year of growth
handed over to custom-
ers in the United States
marked an eight per cent
increase on the previous
year. This includes
Porsche delivered a total of 31,618 vehicles in
its domestic market, representing an increase
of 15 per cent compared with the previous
year. The increase for the Macan was particu-
larly strong at 40 per cent to 9,027 vehicles.
The sports car icon 911 followed in second
place with 8,300 units. The Cayenne achieved
particularly strong growth of 39 per cent to
7,124 vehicles. The Panamera was handed
over to German customers a total of 3,403
times. A total of 3,081 units of 718 Boxster
and 718 Cayman models were handed over to
customers.
In the reporting year,
Porsche delivered
Economic growth
55
2.6 per cent (previously
3.2 per cent). In Western
Europe, growth slowed
over the course of the
year to 1.2 per cent
(previously 1.8 per cent).
GDP continued to grow
in Germany but was
noticeably less dynamic
than the year before, at
0.5 per cent (previously
1.5 per cent).
reduced pace. Global
gross domestic product
(GDP) increased by
continued to record
robust growth in 2019,
albeit at a slightly
The global economy
In the North America region, sales of passen-
ger cars and light commercial vehicles (up to
6.35 tonnes) dropped by 2.3 per cent to
20.2 million vehicles in the reporting year. The
market volume in the US alone was also be-
low that of the previous year, shrinking 1.6 per
cent to 17.0 million units. The shift in demand
from classic passenger cars (down 10.1 per
cent) to light commercial vehicles, such as
SUVS and pick-up trucks (up 2.6 per cent),
was once again evident in the reporting year.
Canada's automobile market continued the
downward trend that began in 2018, experi-
encing a 4.3 per cent drop in the reporting
year. On the South American markets, the
volume of newly registered passenger cars and
light commercial vehicles was down five per
cent at 4.3 million units in 2019. However,
demand for automobiles in Brazil continued to
recover with a high growth rate of 7.7 per cent.
In Western Europe, the car market grew by
0.6 per cent in 2019 to 14.4 million vehicles.
Growth figures varied from one major market
to another, with Germany enjoying a five
per cent upturn in new registrations that saw
it reach 3.6 million vehicles. In addition to the
robust labour market and higher commercial
demand, sales support in the form of a
scrapping bonus also had a positive impact.
France enjoyed a 1.6 per cent increase on the
previous year, while Italy stagnated and Spain
recorded a significant drop of 4.7 per cent.
On the UK car market, the negative trend of
previous years continued - albeit at a milder
level (down 2.4 per cent). In Western Europe,
the proportion of diesel vehicles fell to 32 per
cent in 2019 (previously 36.4 per cent).
2019 was the second consecutive year in
which the global automotive market
contracted relative to the previous year's
figures. In the reporting year, the market fell
by four per cent to 79.6 million vehicles.
While there was a minor uptick in new regis-
trations in Europe, the markets in the Middle
East, North America, South America and
Asia-Pacific all shrank.
Car market
China's economy once more enjoyed signifi-
cant growth in 2019 at a level of 6.2 per cent
(previously 6.6 per cent). In light of its trade
policy disagreements with the US, the
country continued its programme of state
support measures. India's GDP grew by 4.8 per
cent (previously 6.8 per cent), while Japan
recorded growth of 1.1 per cent (previously
0.3 per cent).
Growth in the US economy fell to 2.3 per cent
(previously 2.9 per cent) and was supported
primarily by domestic consumer demand.
Unemployment was at 3.7 per cent (previously
3.9 per cent). The Federal Reserve cut key in-
terest rates in response to global uncertainty,
thus moving away from its previous tightened
monetary policy coupled with relatively stable
inflation. The US dollar gained in strength
against the euro during 2019. In Canada,
growth fell to 1.6 per cent (previously 2.0 per
cent). While the Brazilian economy again
recorded slight growth, expanding by 1.1 per
cent (previously 1.3 per cent), the situation in
South America's largest economy remained
tense due to political uncertainty.
In Western Europe, growth in GDP slowed over
the course of the year to 1.2 per cent (previ-
ously 1.8 per cent) and the rate of change fell
in almost all countries across Northern and
Southern Europe. The ongoing Brexit negoti-
ations also created a mood of uncertainty as
the future shape of the relationship between
the UK and the European Union remained un-
clear. Unemployment fell within the eurozone,
averaging 7.5 per cent (previously 8.1 per
cent), although the rates in Greece and Spain
remained considerably higher. GDP continued
to grow in Germany in 2019, buoyed by the
good situation on the labour market. It was
noticeably less dynamic than the year before,
however, at 0.5 per cent (previously 1.5 per
cent). The mood in the corporate sector, along
with consumer confidence, continued to
deteriorate over the course of the year.
The global economy continued to record
robust growth in 2019, albeit at a slightly
reduced pace. Global gross domestic product
(GDP) increased by 2.6 per cent (previously
3.2 per cent). Economic momentum in the
advanced economies of the world and in the
emerging markets was below the previous
year. Interest rates remained low, while global
energy, commodity and consumer prices all
fell compared to 2018. Increasing trade
distortions at an international level, such as
the conflict between the US and China,
combined with ongoing geopolitical tensions
to generate much higher levels of economic
uncertainty.
Percentage change in GDP
BUSINESS PERFORMANCE
PORSCHE
HUGO 3035
BOSS
O
B
JOINT PROJECT: DESIGNERS FROM PORSCHE AND LUCASFILM DEVELOP FANTASY STARSHIP
Fantasy starship design with Lucasfilm
Designers from Porsche and Lucasfilm Ltd.
joined forces to develop a fantasy starship
design that unites the design DNAs of the two
brands. Two months in the design studios in
Weissach and San Francisco saw the teams
working together to create the first ideas and
prototypes and concluded with a concrete
concept: a fantasy starship called the Tri-Wing
S-91x Pegasus Starfighter. The fine details
of this 1.5-metre-long model were presented
at the premiere of Star Wars: The Rise of
Skywalker in Los Angeles in December.
dafone
BOSS
JAN
Adfeder
Firm commitment to GT sport and Formula E
The 2019 motorsport year was one of the
most victorious in the history of the company,
with titles in three of the world's most im-
portant GT racing series, many other victories
in championships and individual events, and a
productive start in Formula E. Porsche will
power ahead with its GT offensive in the 2020
season, when it will once again enter four
works cars at the 24 Hours of Le Mans. In
North America, the new 911 RSR that enjoyed
such a successful start in the WEC will also
be battling for the title from 2020. The squad
is made up of 18 works drivers, two Young
Professionals and two Porsche Juniors. The
company traditionally develops young drivers
in-house and systematically trains new talents
to become pro racers. Porsche also provides
intensive support to its customer teams.
280,800 cars worldwide
- this all-time record
represented a 10 per
cent increase on 2018.
On top of this, the
61,568 total cars
Porsche has won the manufacturers' title for
the first time in the Intercontinental GT
Challenge. In November, at the final round of
the world's most important championship
for GT3 sports cars, the Porsche 911 GT3 R
from Frikadelli Racing stormed to victory in
Kyalami (South Africa). In a turbulent nine-hour
race, works driver Nick Tandy (United King-
dom) and Porsche Young Professionals Dennis
Olsen (Norway) and Mathieu Jaminet (France)
dominated the action in the crucial moments.
Porsche earned the crucial points via the
third-place finish recorded by the GPX Racing
squad and its drivers Kévin Estre (France),
Michael Christensen (Denmark) and Richard
Lietz (Austria). The Stuttgart-based sports car
manufacturer also took the drivers' champion-
ship: Dennis Olsen secured the crown with
his second victory of the season after winning
the opening round at Bathurst in Australia.
PORSCHE
Important events
Dynamic global economy
2.6%
In 2019, Porsche was able to deliver 9,025
new vehicles in Canada, an increase of one
per cent over 2018. The Macan remained the
most successful model with 3,487 vehicles
sold. With growth of 49 per cent compared
with the previous year, the demand for the
Cayenne increased most strongly. 3,129
vehicles of this model were handed over to
Canadian customers. This was followed by the
911 with 1,414 units representing an increase
of one per cent. A total of 609 Panamera
vehicles were handed over to customers. 386
vehicles were delivered in the case of the
718 Boxster and 718 Cayman models. The
number of "Porsche Approved" vehicles
increased by nine per cent -2,796 Porsche
vehicles were handed over to customers.
Canada: again sixth biggest market
7.7%
A total of 61,568 vehicles were handed over to
customers in the United States in the year under
review. This represents an increase of eight
per cent compared with 2018. The previous
year's figure was exceeded for the 10th time
in succession and includes 130 Taycans that
were delivered to customers. The most suc-
cessful model in the US was again the Macan
with 22,667 deliveries. This was followed by
the Cayenne, which was handed over to cus-
tomers 19,001 times. With an increase of
77 per cent, it achieved a large increase in de-
liveries in the US. A total of 6,625 Panamera
vehicles and 9,265 Porsche 911 vehicles were
handed over to customers. A total of 3,880
vehicles of the 718 Boxster and 718 Cayman
were delivered in the US. Alongside the new
vehicles, Porsche Approved sales also achieved
a new record level. With more than 25,100
deliveries and an increase of nine per cent,
pre-owned vehicles also enjoyed a high degree
of popularity among American customers as
well as new vehicles.
US: 10th successive year of growth
America
China remains the highest-volume market for
Porsche with a total of 86,752 vehicles de-
livered there. This represents an increase of
eight per cent compared with the previous year.
57
26 per cent were delivered in this variant in the
case of the Panamera and 17 per cent for the
Cayenne. Particulary in Europe, many custom-
ers opted for a hybrid model. The share in this
region (Germany excluded) is 60 per cent for
the Panamera and 30 per cent for the Cayenne,
of which the E-Hybrid was not available before
autumn 2019.
The Taycan also already contributed to
Porsche's success with its start of production
in September 2019. The launch market was
the United States with 130 cars handed over
to customers in 2019. The Taycan will be
launched in Germany, China and worldwide
from the beginning of 2020.
In the year under review, Porsche delivered
280,800 vehicles worldwide - the most ever.
The growth rate compared with 2018 was
10 per cent. The Cayenne, with an increase of
29 per cent to 92,055 cars, was the greatest
contributor to this growth. Approximately
15 per cent was contributed by the Coupé
version launched in 2019. The Macan re-
mained the most popular model with 99,944
vehicles delivered to customers. This corres-
ponds to an increase of 16 per cent. The suc-
cess of both models also highlights Porsche's
strong position in this segment. 34,800 cus-
tomers took delivery of their 911 models, and
32,721 Panamera vehicles were handed over
to customers. 20,467 customers received
their mid-engine sports car 718 Boxster or
718 Cayman.
From a sales point of view, 2019 was extremely
successful for Porsche. The sports car manu-
facturer was again able to significantly
increase the number of deliveries worldwide
despite economic and political uncertainties.
Key factors were the attractive product
range and the brand's strong appeal.
2019: deliveries up by 10 per cent
The trade war with the US placed particular
strain on the Chinese market, which shrank by
6.4 per cent in the reporting year. Sales in
India dropped by nearly 12 per cent over the
second and third quarters of 2019. In Japan,
the passenger car market volume fell by
2.4 per cent.
Following a minor dip in 2018, the volume of
the passenger car market in the Asia-Pacific
region experienced a notable six per cent drop
in 2019 as it recorded 34.0 million vehicles.
This was primarily driven by falling demand in
China and India.
The E-Hybrid models were popular for the
Cayenne and Panamera. Approximately
2016
0.5% Germany
1.2% Western Europe
2.6% Global economy
2.3% US
6.2% China
2019
2018
0.2%
2.2%
2017
2015
2014
2013
0%
56
Porsche Sustainability Index ✓
INNOVATIVE MOBILITY
Porsche has defined suitably forward-looking
goals based on the new action areas of
Innovative Mobility, Reliable Partner and Go to
Zero featuring a number of specific milestones.
The company uses the Porsche Sustainability
Index to set itself ambitious targets for the
action areas, which must be reached by 2025.
69
GO TO ZERO
69
Porsche developed its sustainability index in
an effort to devise a tool for collectively meas-
uring all of its key sustainability requirements.
It was inspired to act by a series of cross-
sector benchmark and best-practice analyses.
At the behest of the Porsche Executive Board
and with the support of the Porsche Sustain-
ability Council, the index was subsequently
defined via internal interdepartmental work-
shops and expert discussions in a process
coordinated by the core sustainability team.
Porsche will continue to record the
development of the index's key figures.
During the reporting period, major gains were
achieved in the action area Innovative Mobility.
In addition to other factors, several top
placements in customer satisfaction surveys
contributed to the high target achievement
level of 34 per cent. The decline in the action
area Go to Zero can be attributed to the fact
that the measures implemented in 2019
to reduce CO2 emissions over the product life
cycle have a more medium-term impact. These
measures include, for example, the market
launch of the fully electric Taycan and the
requirement for suppliers to produce high-
voltage batteries using electricity generated
from renewable sources.
and representative parameters that reflect a
quantifiable part of Porsche's sustainability
activities. In this way, different key figures with
various units are offset against each other in
the sustainability index.
What method does Porsche use in this regard?
The status per key figure is calculated based
on the change between the current value and
the value in the baseline year 2018. The key
figures are thus standardised and weighted
equally, and are totalled for each action area
with the respective status ultimately ex-
pressed on a scale from zero to 100. Porsche is
striving for 100 per cent achievement in all
three action areas by the year 2025. This is
also the target for the Porsche Sustainability
Index as a whole, which is calculated as the
average of the different action areas, with target
achievement of all three areas given equal
weight. This ensures that any negative results
in a particular action area cannot be offset by
better outcomes recorded elsewhere.
The Porsche Sustainability Index reinforces the
core objective of its business sustainability
strategy: achieving value-creating economic
and social growth while simultaneously
reducing the environmental impact of the
company.
RELIABLE PARTNER
Status in the 2019 reporting year
Targets for 2025 - overview ✓
RELIABLE
PARTNER
The activities of the Porsche Sustainability
Index are focused on three topics within each
respective action area, which represent
the central challenges for Porsche in terms
of ensuring corporate sustainability both
along the value chain and throughout the
product life cycle. All topics comprise strategic
ORSC
scarce.
10
Sustainability strategy
GO TO ZERO
Porsche revised its sustainability strategy in
the reporting year 2019 with a focus on its
long-term objective of achieving value-creating
growth for economic values and social
responsibility while simultaneously reducing
the environmental impact of the company.
It is taking action across the entire value chain
to improve sustainability within its corporate
activities on all levels. The Porsche Sustain-
ability Index also defines clear goals to be
reached by 2025.
Every year, more resources are consumed than
can be reproduced naturally. The global popu-
lation will stand at more than eight billion by
2030, with the middle-class income group set
to rise by a further two billion during this period.
This points to constant growth in demand
for resources at a time when worldwide reserves
of raw materials are becoming increasingly
Global competition for resources and the
impact of climate change may result in monu-
mental changes to the market. Due to stricter
political regulations, the defining trend of
digitalisation, ever more frequent shifts in con-
sumer demand, and changing perspectives
and requirements on the part of various stake-
holder groups in relation to sustainable
economic activities, companies are being
confronted by entirely new economic condi-
tions. Simply put, the automotive industry
is facing the biggest changes and challenges in
its history.
For Porsche, these challenges also present
new possibilities in terms of design and innov-
ation. Through the development of ground-
breaking products, technologies and services
that consume fewer resources and raw mater-
ials, the sports car manufacturer is looking to
establish future-proof solutions together with
its suppliers, employees and customers. In
this way, Porsche ensures that its operations
are environmentally and socially compatible
while also contributing to its own economic
success.
INNOVATIVE
MOBILITY
This goal forms the core of the company's new
sustainability strategy. As part of this drive,
the strategic action areas that provide the
framework for key issues of corporate sustain-
ability have also been revised. Porsche's
sustainability activities are now structured in
the following three areas:
RELIABLE PARTNER
GO TO ZERO
These new strategic action areas underline
Porsche's holistic commitment to corporate
sustainability. In this context, the indirect
impact of business activities - in the supply
chain, for example - is as much a point of focus
as the direct impact of commercial operations.
Porsche thus acknowledges that its responsi-
bility extends right along the entire value chain.
The ultimate goal of Porsche's sustainability
strategy is for the company to continuously
reduce its negative environmental impact
while further reinforcing its positive influence
on society. Porsche's clearly defined corporate
vision demands that it becomes the most
sustainable brand for exclusive and sporting
mobility.
These new strategic
action areas underline
Porsche's holistic
commitment to cor-
porate sustainability.
In this context, the
indirect impact of
business activities -
in the supply chain,
for example - is as
much a point of focus
as the direct impact
of commercial oper-
ations. Porsche thus
acknowledges that its
responsibility extends
right along the entire
value chain.
67
INNOVATIVE MOBILITY
D»
Porsche's sustainability organisation is imple-
mented across the entire Group. A transparent
internal structure with defined roles and
responsibilities enables sustainability topics
to be handled consistently and effectively
throughout the business. In order to further
reinforce the topic of sustainability, establish
it more firmly in day-to-day operations and
ensure that it is implemented more strictly,
Porsche approved the Group Guideline on Sus-
tainability during the course of the reporting
year. This contains binding regulations
pertaining to organisational processes, topic
management, project implementation and
the communication of all sustainability-related
topics.
SUPPLY CHAIN TRANSPARENCY
Introduction of the "sustainability rating"
for all production material suppliers as a
binding criterion for awarding contracts
and an expansion of the suppliers eligible
for awarding contracts in accordance
with Porsche sustainability requirements.
Top placement in customer satisfaction
studies for both sales and service.
Maintenance of vehicle longevity through
the expansion of replacement parts
inventory for Porsche Classic vehicles.
SOCIAL COMMITMENT
Global expansion of specialist training
centres and job profiles, improvement of
the effectiveness of projects funded,
high level of satisfaction with Porsche's
sustainability performance according to
the stakeholder survey.
CO2 EMISSIONS - PRODUCTS
Reduction of emissions through vehicle
electrification, expanded use of green
electricity and the development of reuse
and recycling concepts.
Sustainability management
70
Sustainability organisation
→ GRI 102-43
Sustainability is embedded as a core interdis-
ciplinary topic in the Porsche Strategy 2025
Plus. The Chairman of the Executive Board
is directly responsible for this topic, with ad-
ditional support from the Executive Board for
Production and Logistics.
The Executive Board of Porsche AG acts as the
highest authority on sustainability, meeting
regularly as the Sustainability Board and setting
the company's fundamental strategic direction.
It also decides on the realisation of far-
reaching sustainability measures and light-
house projects.
The core team dedicated to sustainability
within 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 sustain-
ability activities and projects, implementation
of the strategy, and management of the sus-
tainability committees. The team also ensures
integration with the Volkswagen Group's sus-
tainability activities and reporting. Additionally,
it organises internal and external communi-
cations and the continual expansion of stake-
holder dialogue.
The Sustainability Expert Group is responsible
for developing the content of sustainability
activities and submitting appropriate proposals
to the Executive Board. It brings together
members from all departments and meets four
times per year. The permanent members of
the Expert Group represent all of the relevant
specialist departments in the company, where
they act as multipliers. Group-wide collabor-
ation within the Sustainability Expert Group
was intensified in the reporting year through
the inclusion of further representatives from
the relevant subsidiaries. In addition, employees
responsible for implementing the interdiscip-
linary sustainability strategy are delegated to
the Expert Group by each company depart-
ment. In order to further reduce the complexity
of sustainability management within the
Porsche Group, the Expert Group is expanding
on an ongoing basis and playing a more sub-
stantial role within the organisational structure.
Porsche established its own Sustainability
Council back in 2016, marking a key step for-
ward in terms of expanding and enhancing
corporate stakeholder dialogue. The Porsche
Sustainability Council has been an important
source of ideas and impetus for the Executive
Board and the entire company ever since.
It is composed of internationally renowned
representatives from the scientific and public
communities. The current members of the
Porsche Sustainability Council are Prof. Sonja
Peterson, Prof. Lucia Reisch, Prof. Maximilian
Gege, Prof. Ortwin Renn and Prof. Klaus Töpfer.
In the reporting year, the Sustainability Council
held two consolidated meetings with the
Porsche Executive Board. It also met twice
with the Sustainability Council Coordination
Office and technical experts and had a con-
sultative meeting with the members of the
Volkswagen Group Sustainability Council. Indi-
vidual members of the Council were also given
greater involvement in processes relevant
to management, such as the verification of the
Porsche Sustainability Index and the develop-
ment of strategic sustainability management.
The Liveable City of the Future project estab-
lished by the Council also helped intensify
stakeholder dialogue on the topic of future
urban mobility. Cooperation with the Council is
to be further expanded in 2020.
SUSTAINABILITY MANAGEMENT
PORSCHE SUSTAINABILITY COUNCIL
VALUE FOR CUSTOMER
CO2 EMISSIONS - SUPPLY CHAIN
CO2 EMISSIONS - COMPANY
CO2 EMISSIONS - PRODUCTS
SUPPLY CHAIN TRANSPARENCY
ATTRACTIVE EMPLOYER
SOCIAL COMMITMENT
INNOVATIVE STRENGTH
FINANCIAL PERFORMANCE
VALUE FOR CUSTOMER
CO2 EMISSIONS - SUPPLY CHAIN
Reduction of emissions through the
use of fewer CO2-intensive materials,
raw materials and the manufacturing
processes of suppliers.
Improvements of the Porsche Sustainability Index in 2019 compared to the baseline year 2018
13%
FINANCIAL PERFORMANCE
Top figures for revenue and profit:
≥ 15% return on sales,
> 21% return on investment
INNOVATIVE STRENGTH
Promotion of innovation projects,
increase of patent applications and
expansion of the active customer base to
new services (e.g. in mobility and
connected-car services).
ATTRACTIVE EMPLOYER
CO2 EMISSIONS - COMPANY
Improvement of energy efficiency and
transition of electricity and heating
supply to renewable energies at Porsche
locations. Reduction of emissions caused
by business activities, for example for
employee mobility and travel.
34%
13%
-9%
INNOVATIVE MOBILITY
RELIABLE PARTNER
GO TO ZERO
High level of employee satisfaction, top
placement in employer ratings and
increase the proportion of women in
management positions.
The figures for fuel consumption, energy consumption and CO, emissions are found on pages 193-194.
Despite organisational decoupling from New
Zealand, the Australian sales region remains a
high-volume market for Porsche with a slight
decline of three per cent due to the separation.
A total of 4,166 vehicles were delivered. This
result was achieved in a challenging Australian
automotive market, with the overall market
declining around eight per cent in 2019. The
Cayenne recorded growth of 14 per cent with
an increase to 1,352 vehicles. The highest-
volume model remains the Macan, which was
chosen by 2,009 customers. The 911 was
again popular: 508 vehicles were handed over
to customers. 246 vehicles from the 718 series
were delivered and 51 Panamera vehicles.
Porsche Sustainability Index
Sustainability organisation
Sustainable Development Goals
New vehicle deliveries
Overall, 10 per cent more Porsche vehicles were
delivered than in the previous year.
99,944
Cash flows
from operating activities.
Macan deliveries
The Macan was the best-selling Porsche model,
recording growth of 16 per cent.
35.429
Employees
The global workforce grew by 10 per cent.
€4.40
Operating profit:
before special items.
billion
€28.52 DAD
Operating return on sales before special items
demonstrates healthy cost structure and lasting
high profitability.
280,800
15.4%
billion
A transparent internal
structure with defined
roles and responsibilities
allows sustainability
topics to be handled
rigorously and effectively
throughout the business.
The Executive Board
Japan: 911 extremely popular
Porsche delivered 7,085 vehicles in Japan in
the year under review, marking the 10 consec-
utive years increase and highest number on
record. Compared with the previous year, this
corresponds to an increase of one per cent. The
strongest growth was achieved with the 911.
A total of 1,766 vehicles of the sports car icon
were delivered - 26 per cent more than in the
previous year. The Macan also contributed to
growth with 2,232 units handed over to cus-
tomers, an increase of nine per cent. A total of
1,049 Panamera vehicles were delivered, and
almost as many Cayennes with 1,041 units.
Some 997 Japanese customers took delivery
of their 718-series mid-engine sports car.
Taiwan: Macan with strongest growth
The market in Taiwan grew by 10 per cent in
2019 to 3,732 vehicles delivered. The Macan
recorded the strongest growth with 51 per
cent more than in the previous year and a total
of 1,475 vehicles handed over to customers.
It almost caught up with the Cayenne which,
with 1,556 units, remained the most popular
model in Taiwan. Some 255 customers
received their 718 Boxster or 718 Cayman
and 250 their 911. A total of 196 customers
took delivery of their Panamera.
South Korea: the Cayenne is the most
popular model
In South Korea, Porsche almost maintained its
number of vehicles delivered in 2019, with a
total of 4,288 vehicles delivered. Significant
growth was achieved by the Cayenne, of which
2,332 vehicles were handed over to custom-
ers. Other popular models in South Korea were
the Panamera (1,124 vehicles), 718 Boxster
and 718 Cayman (together 731 vehicles) and
the iconic 911 sports car (100 vehicles).
Asia-Pacific: strongest market growth
The Asia-Pacific region that Porsche supports
from Singapore was the highest-growth
market for the sports car manufacturer in the
previous year also thanks to the integration
of New Zealand, which was previously part
of the Australian sales organisation. Deliveries
increased by 41 per cent to 3,025 vehicles.
The Cayenne recorded the strongest growth at
154 per cent and 1,070 vehicles. The Macan
also achieved a high growth rate: 1,090
vehicles and thus 84 per cent more than in the
previous year were handed over to customers.
The 911 also recorded a solid 16 per cent in-
crease, with 352 vehicles delivered. Customers
received 312 vehicles of the Panamera and
201 vehicles of the 718 series.
billion
Middle East, Africa and India: Macan with
strong growth in demand
based in Dubai supports the brand's operations
across 21 countries with 22 importers and
65 retail facilities spread across the Gulf
Cooperation Council (GCC) countries, Levant,
India and Africa. Accounting for 22 per cent of
total regional sales, South Africa was the larg-
est market for Porsche Middle East and Africa
in 2019. The GCC countries remained a key
contributor representing a 58 per cent share of
new car deliveries.
Australia: slight decrease due to
structural change
In 2019, China again
boasted the highest
volume of any individual
Porsche market as it
recorded 86,752 total
cars (up eight per cent).
The Porsche market
with the highest level of
growth was the Asia-
Pacific region after
allocating Australia
there, which recorded a
41 per cent increase to
3,025 cars - and a
154 per cent increase in
demand for the Cayenne
(to 1,070 units).
Fiscal year 2019
in figures
Porsche AG Group
€4.49
In the Middle East, Africa and India region,
6,891 vehicles were delivered in the reporting
year, with Porsche achieving growth of seven
per cent despite continuing challenges for
the regional automotive industry. The Macan
was a particularly strong performer in the
region with 2,278 new car deliveries and a
growth of 74 per cent compared to the previ-
ous year, whilst the Cayenne maintained its
position as the best-selling model with 2,785
vehicles sold to customers. Although the
eighth generation of the iconic Porsche 911
was only introduced to the region mid-way
through the year, sales surpassed previous
year's deliveries. Porsche's regional office
Revenue: an increase of 11 per cent in
comparison with the previous year.
86,752
Deliveries in China
Economic conditions in the United States are
forecast to be stable in 2020, although GDP
growth may be lower than in the reporting year.
BRAZIL
GERMANY
Germany is predicted to record a low level of
GDP growth in 2020.
WESTERN EUROPE
CHINA
With regard to China, 2020 is expected to
feature a continuation of relatively high growth
but a less dynamic economy than in previous
years.
NORTH AMERICA
JAPAN
According to our forecasts, economic growth for
2020 in Western Europe will be slightly weaker
than in the reporting year.
In Japan, however, we continue to anticipate
weak economic growth.
63
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Important events
64
Sustainability management
Sustainability strategy
Looking to Brazil, the largest economy in South
America, 2020 is predicted to deliver somewhat
more dynamic growth than the reporting year.
Porsche stands for visions. Sets
standards. Also in terms of sustain-
ability. Across the entire value chain
and on all levels of its corporate
activities. Porsche is shaping the
future of the sports car.
Development of the world economy
2020 forecasts by Porsche AG
the world economy over
the coming years.
China was Porsche's strongest market, growing by
eight per cent on the previous year.
61
Important events
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
62
OUTLOOK
For the purpose of our planning, we expect
global economic growth in 2020 to continue
on the level of the previous year. 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 conflicts.
We therefore expect advanced nations and
emerging markets to demonstrate a similar
dynamic to 2019. The highest rates of growth
are likely to be recorded in the emerging
economies of Asia.
The development of car
markets around the
world will be influenced
by regional conditions.
According to our
forecasts, the global
demand volume for new
vehicles in 2020 will
be comparable to that
recorded in 2019.
Looking at the period
from 2021 to 2024,
we expect growing
demand for passenger
vehicles worldwide.
We are also anticipating continued growth in
the world economy during the period from
2021 to 2024.
We are expecting stable economic conditions
in the US for 2020, although GDP growth is
forecast to be lower than in the reporting year.
The Federal Reserve may also reduce key in-
terest rates further in 2020. Economic growth
in Canada is anticipated to remain essentially
steady. Looking to Brazil, the largest economy
in South America, 2020 is predicted to deliver
somewhat more dynamic growth than the
reporting year.
With regard to China, we expect 2020 to
feature a continuation of relatively high growth
but a less dynamic economy than in previous
years. A temporary agreement with the US on
matters of trade and fiscal measures taken by
the government may provide a stabilising
effect. We predict that the rate of expansion in
India will remain at the same level as in previ-
ous years. In Japan, however, we continue to
anticipate weak economic growth.
Heterogeneous automotive markets
As far as the world's automobile markets are
concerned, we expect to see a variety of
developments across the different regions
in 2020. According to our forecasts, the
overall global demand volume for new vehicles
will be comparable to that recorded in the
reporting year. Looking at the period from
2021 to 2024, we anticipate growing demand
for passenger vehicles worldwide. In 2020,
the volume of the passenger car market in
Western Europe is predicted to be noticeably
below the level achieved in the reporting year.
The unknown impact of Brexit may well add
to ongoing consumer uncertainty and continue
to stifle demand. Following positive overall
growth in the German passenger car market
over recent years, 2020 is forecast to feature a
markedly lower level of demand than the
previous year. The British and Italian markets
are expected to demonstrate moderately
weaker demand. In France and Spain, we are
predicting considerably lower demand than in
the reporting year.
Demand for passenger cars and light commer-
cial vehicles (up to 6.35 tonnes) in 2020 will
fall by a small amount in the US 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 Canada, the number of newly regis-
tered vehicles is also forecast to be slightly
below that of 2019. Given their dependence
on global demand for commodities, the South
American passenger car and light commercial
vehicle markets are highly influenced by the
development of the global economy. For 2020,
we are predicting moderate growth in new
registrations in South America compared with
the previous year. Following increased demand
in 2019, Brazil is set to see further tangible
growth in this regard during 2020.
In the Asia-Pacific region, we believe that
market volumes in 2020 will remain at the
level of the previous year. We also expect
demand in China to pick up again slightly, with
good-value, entry-level SUV models in par-
ticular predicted to remain very popular. The
trade dispute between China and the US will
continue to impact on business and consumer
confidence, unless a solution emerges. As
far as the Indian market is concerned, we are
anticipating a slight drop on the previous year.
Japan is expected to witness a considerable
fall in market volume in 2020.
Porsche anticipates
continued growth in
According to our forecasts, economic growth
for 2020 in Western Europe will be slightly
weaker than in the reporting year. Structural
problems and the unknown impact of Brexit
continue to pose major challenges. As far as
Germany is concerned, we predict that gross
domestic product (GDP) will rise less strongly
in 2020. The situation on the labour market
is forecast to remain stable and support
private consumption.
of Porsche AG acts as the
highest authority on
sustainability, meeting
regularly as the Sustain-
ability Board and setting
the company's
fundamental strategic
direction.
SDG 4 - Quality education
Sustainability organisation - overview
Ø 38 YEARS
average age of employees
- 44%
چی
decrease in absolute CO2 emissions
(scope 1 and 2) since 2014 at
implemented to increase resource efficiency in production since 2014
Taycan as a job driver: 2,000 new employees
the Stuttgart-Zuffenhausen location
Sustainability management
76
Stakeholder management
External stakeholder dialogue
Internal stakeholder dialogue
Stakeholder survey and materiality
Porsche is a part of society. Engages
in open dialogue. Ensures trust and
acceptance. Generates revenue. Shapes
innovations. Creates investments and
excellence. Ensures well-being, work
and training for young people.
THE
FUTURE
IN YOUR
HANDS
chatfi st
TWO THOUSAND
work at Porsche
staff increase in 2019
290 MEASURES
> 10 %
own electric power generation for vehicle production
50%
One of every two Porsche vehicles
will be electric by 2025
CARBON-
NEUTRAL
Carbon-neutral production
of the Taycan
EO
>70%
+9.6%
<1%
€200,000
raised for good causes thanks to the six-hour employee run (3,200 runners)
staff turnover rate at Porsche
9
5 GENERATIONS
of all Porsche vehicles ever built are still on the road
Porsche AG
STAKEHOLDER MANAGEMENT
External stakeholder dialogue
as determined by internal analyses.
RESIDENTS AND
COMMUNITIES
NGOS/NON-PROFIT
ORGANISATIONS
EMPLOYEES
PORSCHE
MEDIA
SCIENTIFIC
COMMUNITY AND
EXPERTS
COMPETITORS
CUSTOMERS AND
BUSINESS PARTNERS
POLICYMAKERS AND
ASSOCIATIONS
INVESTORS AND
ANALYSTS
Stakeholder management
لكا
80
71
The most important company stakeholders (internal and external)
→ GRI 102-40, 102-42, 102-43, 102-44
Our stakeholders
→ GRI 102-40, 102-42, 102-43, 102-44
Centrally coordinated, open and transparent
internal dialogue is an essential component
of Porsche's corporate culture. Employees
have a wide range of opportunities to raise
their own concerns and use direct interaction
channels to keep themselves informed about
sustainability-related topics. Potential sources
of information include the local site newsletters
and the in-house TV channel, while the
intranet also provides up-to-the-minute news.
In addition, an entire edition of the Carrera
employee magazine published during
the reporting year was dedicated to current
sustainability topics at Porsche. Regular works
and departmental meetings, employee
information events and specific topic and
innovation weeks also form part of the diverse
programme of internal communications.
→ GRI 102-40, 102-42, 102-43, 102-44
An exchange that is beneficial for all sides
must be based on trust. This is the core value
of any long-term relationship between Porsche
and its external dialogue partners. Credible
exchange with the stakeholders must be geared
towards the long term and be nurtured on an
ongoing basis. Porsche considers it important
for people to talk to one another, not over one
another, so that they can understand other
perspectives, break down barriers and develop
long-term partnerships. This takes place via a
diverse range of communication channels and
dialogue formats.
The most important sources of information for
thought leaders, decision makers and customers
include the Porsche magazine Christophorus,
which is published in 13 languages around the
world, the online newsroom with its Twitter
and Instagram channels, the Web-based
TV channel 9:11 Magazin and the company
website. The community newspaper targa -
Nachrichten für die Nachbarn, which was
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 neighbours abreast of issues
such as plans for future construction work.
Porsche also seeks to address stakeholders
personally through multi-stakeholder events
such as the regular dialogue summits held at
the company sites. Since 2016, this has given
local residents the chance to raise specific
questions directly with the experts. During the
reporting year, the company used an event
held at its Zuffenhausen site in Stuttgart to
update its neighbours on the status of the
construction work taking place there. Around
300 members of the public took up this
79
opportunity to learn about the project, ask
questions, make suggestions or express
their opinions.
Stakeholder communication and dialogue
→ GRI 102-42, 102-43, 102-44
Porsche's business activities have an impact
on the interests of many people across the
world. The company is particularly concerned
with conducting and consistently building
on a process of proactive exchange with its
stakeholders. For Porsche, an open and trans-
parent exchange of information and opinions
lays the foundation for mutual understanding
and social acceptance. With its holistic ap-
proach to stakeholder management, Porsche
aims to systematically ascertain the expec-
tations of individual stakeholders and use this
feedback for critical reflection on strategic
planning processes. This procedure is divided
into internal and external dialogue depending
on the target group in question.
Porsche highly values direct feedback from
its interest groups and views one-to-one talks
as an effective tool for gaining fresh inspira-
tion. Through a dedicated email address
(sustainability@porsche.com), the sports car
manufacturer offers stakeholders a way of con-
tacting the responsible department directly.
Cooperating in networks and engaging in sus-
tainability initiatives and working groups also
form part of Porsche's stakeholder dialogue as
this works to drive forward economic, ecological
and social issues. Porsche participates in a
wide variety of specialist bodies - for example,
the sports car manufacturer is a founder
member of the Bündnis für Luftreinhaltung clean
air alliance, a member of the Urban Mobility
Platform and an active participant in the indus-
try dialogue on the German national action
plan for business and human rights. It has also
been a member of the German Environmental
Management Association (B.A.U.M.) since
2016. In 2017, the company joined the German
Business Ethics Network (DNWE) and became
a signatory to the state of Baden-Württem-
berg'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 of B.A.U.M. and
the German Federal Environmental Foundation
(DBU) is to use digitalisation as a tool for
future-proof sustainable development.
Another approach involves engaging in dia-
logue as part of activities within economic and
political associations. This enables the com-
pany to represent its interests and those of its
employees while also contributing relevant
expertise. All company activities in this area
abide by the principles of openness, transpar-
ency and responsibility as well as the currently
applicable statutory provisions. It goes with-
out saying that Porsche remains neutral in its
dealings with political parties and interest
groups. The following list features a selection
of associations and groups of which Porsche
is a member:
- German Association of the Automotive
Industry (VDA)
- Südwestmetall (Baden-Württemberg
employers' association for the metal and
electrical industry)
Chamber of Commerce and Industry of the
Stuttgart Region (IHK)
- Society for the Advancement of the
Kiel Institute for the World Economy
- American Chamber of Commerce in
Germany (AmCham Germany)
Internal stakeholder dialogue
The stakeholder survey is carried out every
two years as part of a systematic process
to learn about groups' views and expectations
in relation to the issue of sustainability. The
issues identified in the online survey provide
the basis for this sustainability report and for
sustainability aspects which are closely linked
to other aspects of the corporate strategy.
Sustainability
in figures
- The Industry Association of
Baden-Württemberg (LVI)
74
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 all employees the opportunity
to engage in systematic training tailored to
their needs. Porsche is committed to the field
of education and science in a variety of
ways, particularly at its company sites and on
an international level. Examples include the
regional Ferry Porsche Educates initiative in
Stuttgart and Leipzig as well as the interna-
tional Porsche Aftersales Vocational Education
(PAVE) programme, which promotes the
needs-based implementation and expansion
of local vocational education for Porsche
dealer organisations worldwide.
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
products and services. 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. As more can be achieved by
working together, Porsche and its partners
organised the "Mobility for a better world"
competition in the reporting year to identify
ideas and technologies for sustainable
future mobility.
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
sustainable 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 envir-
onmentally sound products that use fewer
resources, Porsche is also constantly develop-
ing efficient, environmentally compatible
production processes. Economic, ecological,
sociocultural, functional and technical process
qualities all play a central role. Meanwhile,
the company sees it as equally important that
internationally accepted rules governing health
and safety and environmental protection
are upheld. Ethical considerations and stand-
ards take precedence along the entire Porsche
supply chain as the overriding sustainability
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
company now uses 100 per cent green energy
to supply the power needed for production.
Porsche's first fully electric sports car, the
Taycan, is being produced in Zuffenhausen as
part of a completely carbon-neutral process.
Meanwhile, the company is consistently
cutting levels of CO2 emissions from its own
fleet and offsetting those from its vehicle
pool. As its development of electric models
Porsche wants to counter
the ongoing depletion of
natural resources and
climate change and have
a positive impact on
social development. The
company is focusing on
those issues that its own
business model and
related value creation
processes can materially
influence.
gathers pace, Porsche is contributing to
global climate protection and to improving air
quality in cities.
SDG 17 - Partnerships for the goals
Sustainable mobility solutions and a liveable
world for the future can only be created by
working together. This is why a process of
permanent exchange with stakeholders and
the strengthening of partnerships are two
of the main goals of Porsche's sustainability
strategy. The company is actively involved in a
range of networks and is committed to sus-
tainability initiatives. Through these collabor-
ations, Porsche is supporting the transfer of
knowledge for innovative and future-oriented
approaches shaped around sustainability.
SUSTAINABLE
DEVELOPMENT
GOALS
Taking into account internal and external
sources, there are seven SDGs for which
Porsche is using its sustainability activities
to make a real difference:
While the SDGs are primarily aimed at states
and governments, Porsche also wants to
counter the ongoing depletion of natural
resources and climate change and have a
positive impact on social development.
The company is focusing on those issues
that its own business model and related value
creation processes can materially influence.
In autumn 2015, the General Assembly of the
United Nations adopted its 17 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 envir-
onmental compatibility.
→ GRI 102-47
PORSCHE EXECUTIVE BOARD AS SUSTAINABILITY COUNCIL
75
SUSTAINABILITY COUNCIL
Set strategic direction
for sustainability
SUSTAINABILITY EXPERT GROUP
SUSTAINABILITY TEAM
The United Nations' goals for
sustainable development
Develop strategic aims and statements on sustainability
Define indicators and lighthouse projects
SPECIALIST DEPARTMENTS AND COMMITTEES
Sustainability management
Provide representatives for Sustainability Expert Group
Inform them about sectional strategies and current topics
Provide data for reporting
INTERNAL
EXTERNAL
72
Sustainable Development Goals
Interface for relevant topics
Management of the sustainability strategy
Organisation of the committees
Reporting
3 Wo
Source of advice and impetus
1
Sustainable cities
and communities
12 co
Q
Responsible consumption
and production
15 ✔
Life on land
13
11A
16 ▾
14
Life below water
17Ⓡ
Partnerships for
the goals
Good health and
well-being
Sustainability management
73
Peace, justice and strong
institutions
Reduced inequalities
Climate action
Industry, innovation
and infrastructure
4
10 ệ
No poverty
2
Zero hunger
5 *
Quality education
6호
Clean water and
sanitation
Gender equality
7
Affordable and
clean energy
8 1
Decent work and
economic growth
9
New mobility options
Urbanisation, increasing prosperity, growing
global demand for mobility and the associated
higher environmental pollution trigger innov-
ation and market dynamics for the adaptation of
the car and its use. These factors are
leading to the diversification of drive concepts
in a move towards highly efficient, alternative
options, as well as towards innovative, flexible
and needs-driven car usage models. Digitalisa-
tion, connectivity and customers' desire for
more flexibility and sustainability are acceler-
ating this change.
At the National Diesel Forum, Porsche also
confirmed its willingness to create voluntary
software updates for the Cayenne and
Panamera (184 kW and 221 kW) 3.0-litre V6
diesels (Euro 5). Approval for this voluntary
software update is expected in the first quarter
of 2020, with the voluntary service campaign
set to launch thereafter.
In addition, the KBA issued Porsche with
recall notices for the Cayenne 4.2-litre V8
diesel (Euro 5 and Euro 6) and the Panamera
4.0-litre V8 diesel (Euro 6). It approved
Porsche's proposed software update for the
Panamera 4.0-litre V8 diesel (Euro 6) in
August 2019, and the recall process began
in November 2019. The KBA approvals for
the software update for the Cayenne 4.2-litre
V8 diesel (Euro 5 and Euro 6) are expected
to be issued in the first quarter of 2020.
As soon as the technical solutions have been
approved, vehicle owners will be contacted
accordingly by their Porsche dealers and the
recall action will commence in the first half
of 2020.
In order to make individual mobility sustain-
able and to turn smart cities into a reality,
Porsche is developing innovative products
and services to shape flexible and convenient
mobility. These include pioneering parking
solutions (such as intelligent parking space
searches and convenient, ticketless car park
usage, etc.), needs-driven car usage (such
as flexible usage models and premium rental at
Porsche hotspots), seamless integration with
other forms of transport and the best possible
use of electric cars thanks to optimised
charging services and products (for charging
at home and in public places). Agile inter-
disciplinary teams are developing concepts
that take their lead from customers' latest
requirements and putting them into action.
This development is underpinned by close
cooperation between the company's different
departments, an open information policy,
early piloting in different markets and stake-
holder involvement.
The KBA ordered a recall of the Macan
3.0-litre V6 diesel (Euro 6) in July 2018 for a
corresponding update. On 1 August 2018,
it approved Porsche's proposed solution. Since
Porsche began this recall in October 2018,
around 87 per cent of the affected cars in
Germany have already received this free soft-
ware update.
In 2017, Porsche recalled the Cayenne
3.0-litre V6 diesel (Euro 6) in Germany as a
result of individual technical properties of the
engine control software. By mid October of
that year, the KBA had approved Porsche's
proposed software update. Porsche has since
recalled the cars concerned for a free soft-
ware update, and around 96 per cent of those
affected in Germany have already been
processed accordingly.
models for the purpose of performing software
updates after irregularities were found in the
engine control software.
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "alternative drive systems" and
"vehicle emissions" contributes to the report-
ing requirements of GRI 305: Emissions.
However, the figures in this report that are
required for this indicator refer solely to
emissions that come from production and
administrative operations. For this reason,
the consumption and emissions figures for all
car models are reported instead.
Authority (KBA) ordered a recall of certain
Innovative Mobility
Porsche contributes to the achievement of the
UN's long-term climate goals and strives to
ensure the ongoing decarbonisation of private
transport. Through its new electrification
strategy and the continuous intensification of
company activities relating to the global indus-
trialisation of synthetically produced and
climate-neutral fuel, Porsche is aiming to posi-
tion itself as a technology leader in this regard.
Alongside electrification, Porsche is also
pursuing further options beyond efficiency
measures to reduce CO2 emissions in the use
phase of petrol cars and to render this phase
almost entirely carbon-neutral. One of the
key technologies in this context is reFuels,
which is the name given to synthetic liquid
fuels that can be produced solely from hydro-
gen recovered via renewable energy and
from carbon dioxide drawn from the ambient
air - or from organic and other forms of waste.
As reFuels can be deployed in the entire exist-
ing fleet, their use results in a wide-ranging
and immediate reduction in CO2. In collabora-
tion with its partners from science, industry
and politics, the company is working inten-
sively to develop these alternative fuels for
series production. For example, Porsche is
participating in the reFuels - rethinking fuels
project, which forms part of the strategic
dialogue for the automotive industry in
Baden-Württemberg, which was initiated
by the respective state government.
cess. Porsche is therefore adopting a holistic
approach, working continuously on upgrading
charging technologies and charging infra-
structure. Using new products and services, it
is looking to turn charging into a personalised
customer experience that is both fast and
attractive. The IONITY joint venture in which
Porsche holds a stake is powering the expan-
sion of a fast-charging infrastructure with
350 kW charging stations throughout Europe.
This campaign aims to have over 400 charging
parks enter operation by the end of 2020.
For home charging purposes, Porsche has
designed a wall box boasting an output of up
to 11 kW, thus enabling customers to fully
charge the Taycan overnight. When it comes
to charging while on the move, the Porsche
Charging Service offers users access to over
100,000 charging points in Europe plus the
option of central billing.
well as on a customer-friendly charging pro-
88
87
The ability of electromobility to make a break-
through depends on a needs-based, access-
ible and available charging infrastructure as
In the reporting year, Porsche's all-electric
Taycan redefined sports car construction in
terms of performance, driving dynamics
and range while also representing a major
step towards the decarbonisation of private
transport. With over 20,000 prospective
customers, the car already enjoys great popu-
larity. The technological heart of the Taycan
is its 800 V architecture, which enables a
sporty driving performance and short charging
times. In addition, the relevant performance
level can be reached multiple times in succes-
sion. Given the charging output of as much
as 270 kW, five minutes of recharging equates
to a range of up to 100 kilometres in accord-
ance with the WLTP measuring procedure. The
Taycan boasts a maximum recuperation out-
put of up to 265 kW and a maximum range of
up to 450 kilometres according to WLTP.
Based on the same platform and featuring a
flat-bottom battery, the Taycan Cross Turismo
will be unveiled in late 2020 as the first
derivative. And the next generation of compact
SUVs under the Macan label will also be
all-electric.
Another key area involves Porsche's corporate
mobility management options, which aim
to ensure sustainable mobility behaviour on
the part of employees. Interdepartmental
projects have seen Porsche develop compre-
hensive measures at its sites in order to
reduce the environmental and social impact
of employees' mobility behaviour. The project
is particularly relevant to the main plant in
Zuffenhausen, which is located in an urban
area. The employees based there and at the
development site in Weissach receive a
monthly subsidy for the company ticket for
local public transport and the Job-Ticket
offered by railway provider Deutsche Bahn.
In addition, the Porsche plant ID card serves
as a ticket for business travel on the local
S-Bahn train route between the Weilimdorf
and Zuffenhausen sites in Stuttgart. Porsche
was also the first employer in the Stuttgart
region to enables its staff to use the company
ID card as a free public transport ticket when
air pollution alerts are in effect.
Porsche's drive strategy aims to meet this
objective, with the company adopting a
three-pronged approach to drive concepts in
the medium to long term. Porsche will simul-
taneously market cars with optimised petrol
engines, powerful hybrid drives and all-electric
sports cars. By 2025, electric drive is to be
featured in 50 per cent of all new Porsche cars
sold. Porsche will be investing more than six
billion euros in electromobility by 2022 so as
to further increase the proportion of electric
cars in the long term.
Alternative drive systems and
vehicle emissions
Porsche aims to continuously reduce green-
house gas emissions across its entire value
chain. The use phase of cars will have by
far the largest impact on greenhouse gas
emissions for the foreseeable future, which is
why particular attention is being paid to the
hybridisation and electrification of the product
portfolio, the improvement of petrol engines
and the use of carbon-neutral fuels. Continu-
ous efficiency gains, the development of alter-
native drive technologies, the use of renewable
energy sources and lower pollutant emissions
- for Porsche, resource-saving and environ-
mentally friendly mobility is a primary strategic
target. The themes of electromobility and
vehicle architecture of the future are corner-
stones of the Porsche Strategy 2025 Plus.
The Porsche range has been diesel-free since
February 2018, and the company plays an
active role within the Group in tackling nitro-
gen oxide pollution in German cities. Prior to
Porsche's decision to stop marketing diesel
cars, Germany's Federal Motor Transport
In the reporting year, Porsche established
a work bike programme, and offers attractive
benefits for employees when purchasing a
bicycle. The company also engaged in particu-
lar efforts to expand the bike parking spaces
as well as the shower and changing facilities at
its Zuffenhausen site. A dedicated carpooling
app also helps employees to set up carpools
for travelling to work and on business. Drivers
and passengers can enter their departure
location, destination and desired departure
time, with the app then combining these
requests to generate a personal itinerary.
part-time. In addition, many opt to take
Charging stations for private electric cars as
well as Porsche company and leasing cars
are available to employees and visitors alike.
The charging infrastructure within the plants
is also being continually enhanced. To enable
the cars to undertake carbon-neutral local
journeys, the charging stations are supplied
with 100 per cent certified green electricity.
Porsche intends to significantly increase
the proportion of electric-drive and hybrid-
drive cars within the fleet of company
and leasing cars.
In accordance with the Global Reporting Initia-
tive Standards, information provided on the
topic of equal opportunities and diversity
contributes to the reporting requirements of
GRI 401: Employment. This 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.
The Equal Opportunities department, which
is anchored in the area of HR development
and talent strategy, serves as a catalyst and
expert partner for the long-term implementa-
tion and safeguarding of equal opportunities
and diversity.
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "vehicle safety" contributes
to the reporting requirements of GRI 416:
Customer Health and Safety.
of management positions occupied by women
in accordance with equal opportunities.
Leadership labs, diversity cockpits and special
tools for identifying, implementing and
expanding diversity are used to qualify and
sensitise the management to dealing with a
wide range of perspectives.
to have a positive influence on the behaviour
of the workforce. Equal opportunities and
diversity are promoted to ensure heterogeneity
on all decision-making levels - for example,
in terms of gender, age, skills, experience, inter-
nationality and other similar aspects. The
importance of this topic is reflected in the equal
opportunities target agreement that entered
into force in 2013, is linked to the awarding of
bonuses, and aims to boost the proportion
point of focus, using their status as role models
A core success factor for promoting a corres-
ponding corporate culture is to engage in
sensitisation across the company, thereby
creating awareness of the importance and
added value of equal opportunities and diver-
sity both at management level and within
the overall workforce. The most senior levels
of management should serve as a particular
By adding their signature to the "Charta der
Vielfalt" (diversity charter) in the reporting
year, the Executive Board and employee repre-
sentatives clearly demonstrated their appreci-
ation for the importance and added value of
equal opportunities and diversity within the
workforce and wider society. Respectful, toler-
ant interaction and a positive approach to a
wide range of perspectives - such as different
skills, experiences and viewpoints - both target
the achievement of maximum productivity,
competitiveness, innovative capacity, creativ-
ity and efficiency. At Porsche, employees are
chosen, appointed and promoted on the basis
of their qualifications and abilities.
Equal opportunities and diversity
Safeguarding and promoting equal oppor-
tunities and diversity is highly important to
Porsche and is therefore anchored as a
corporate principle. The company takes it as
a given that all people should be offered the
same chances and rejects all forms of dis-
crimination. It is committed to diversity, takes
an active approach to inclusion and creates
an environment that promotes everyone's
individuality in the interests of the company.
As a member of the wider Group, Porsche has
also signed up to the applicable standards
for promoting and safeguarding diversity and
equal opportunities within Volkswagen AG's
Together4 Integrity change programme.
In accordance with the Global Reporting Initia-
tive Standards, information provided on the
topic of attractive employer in this report
contributes to the reporting requirements
of GRI 401: Employment. This 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.
parental leave. Porsche then helps these indi-
viduals make a smooth return to work, also
informing them during their parental leave of
further qualifications that could simplify the
process of returning to work. The reporting
year saw a total of 1,322 (2018: 1,205)
employees taking parental leave, of which
243 (2018: 253) were women and 1,079
(2018: 952) were men.
Porsche considers employees' individual needs
and promotes flexible working options with
respect to workplace and working hours,
thereby ensuring maximum flexibility whatever
the situation. As a result, a works agreement
has been put in place to enable mobile work-
ing. This grants employees the flexibility to
decide where and to a certain extent when they
complete their tasks away from the Porsche
operating sites. Further options range from
flexitime aligned to the employee's current
phase of life through to care leave that enables
them to support family members. Employees
may also take voluntary sabbaticals or work
it much easier for employees to collect or
drop off their parcels and save valuable time in
the process. These stations are, of course, also
available to all other DHL customers.
Porsche strives to ensure that its staff can
achieve a work-life balance. Employees receive
support through a wide variety of different
measures and options. In this way, local coop-
eration partners ensure that sufficient child-
care places are available in nurseries close to
the company's sites. In addition, employees'
children can take part in a series of summer
events covering the entire school holiday period.
On top of this, the Porsche family service pro-
vides free personal advice and support relating
to all aspects of family life. A collaboration
with DHL also saw package delivery stations
come into operation in the reporting year at
the Weissach and Zuffenhausen sites, making
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 realignment in response to the
digital transformation. Following the intro-
duction of the Porsche code - which draws
on the new culture guidelines comprising the
four elements of dedication, pioneering spirit,
sportiness and family - a series of dialogue
events labelled "leadership labs" were held
during the reporting year with the objective of
developing and enhancing this code. These
were attended by over 1,500 managers - from
foremen to members of the Executive Board -
who developed a common understanding of
leadership over the course of the workshops.
The basis for successful HR work is Porsche's
continual positioning as an attractive employer.
Firmly anchored in Porsche's HR strategy,
employer attractiveness is one of four central
priorities enshrined in the overarching Porsche
Strategy 2025 Plus. The benchmarks in this
regard include five defined strategic fields as
well as the corporate guidelines.
Attractive employer ✓
With the action area Reliable Partner,
Porsche covers topics identified in the 2019
materiality analysis such as attractive
employer, equal opportunities and diversity,
staff development, corporate co-determin-
ation, occupational health and safety,
compliance and integrity and responsibility
in the supply chain.
Sustainability is firmly embedded in the public
consciousness and has developed into a
defining element of competitiveness. Porsche
sees it as a corporate duty to take the inter-
ests of its stakeholders into account: after
all, environmentally and socially compatible
actions can only be ensured by working
together. It is a key plank of the company
philosophy that Porsche demonstrates integ-
rity and responsibility as an employer and
business partner. At Porsche, the focus is
on people - not only in terms of its employees,
but also the wider society of which it forms
a part. Ethical behaviour is therefore of para-
mount importance. The company promotes
diversity and equal opportunities, is system-
atically opposed to corruption, and advocates
for the upholding of internationally recog-
nised human rights.
RELIABLE PARTNER
Innovative Mobility
90
89
In accordance with the Global Reporting
Initiative Standards, information provided
on the topic of "new mobility options"
contributes to the reporting requirements
of GRI 305: Emissions.
Further measures to reduce traffic and actively
shape sustainable employee mobility are
also planned.
In addition, the availability of parking at the
plant and mobility around the site grounds are
being continuously optimised. Considerable
improvements have already been achieved
through the installation of a digital, stationary
parking and information system as well as
through the launch of the Porsche parking
space app, which displays free parking spaces
with pinpoint accuracy. The company has also
successfully reduced the amount of traffic
between the plants by further expanding the
frequent bus shuttle routes.
The ultimate vision for the topic of vehicle
safety is the general avoidance of accidents.
Porsche is therefore consistently working
on the development of anticipatory systems.
As a result, vehicle safety at Porsche will
continue to make an important contribution
to general road safety in the future.
"It is important to authentically promote the concept of sustainability both
internally and externally so that employees can adopt a sustainable
approach to topics and processes. Porsche should remain true to itself in
this regard and go its own way."
Vehicle safety is a decisive criterion from the
outset in the development of innovative,
state-of-the-art vehicles. Alongside accident
prevention - for example by fitting cars
with ABS, ESP and automatic emergency
braking systems - one of the main goals is to
reduce the effect of an accident on the car's
occupants. With this in mind, during the
development phase of a new model the defor-
mation behaviour of the car body is precisely
defined for a variety of frontal, lateral and rear-
end impacts. Cars are also fitted with a smart
restraint system consisting of airbags and seat
belts. Crash tests are used to check the effec-
tiveness of the safety systems. In a controlled
crash, the impact of the entire vehicle slam-
ming into an object, such as a wall, is investi-
gated. Crash-test dummies with sensors
are used, which enables the evaluation of
the possible injuries of the occupants. Specific
biomechanical limits must be adhered to,
stipulating such parameters as maximum
acceleration or deceleration of the head.
Action areas
84
Customer
Employee
Stakeholder management
Customer
"As a customer, I think Porsche's most important contribution to sustain-
ability is the ongoing hybridisation and electrification of its cars - as well
as the enhancement of existing petrol engines."
Representative from academia and NGOs
"The company stands for innovation, quality and exploring new horizons.
This philosophy provides the basis for maintaining high levels of customer
satisfaction, safeguarding existing jobs and retaining a competitive
advantage in the long term."
"A powerful brand like Porsche can change social norms. The company
must live up to its responsibility as an industry leader, motivate other
manufacturers and appeal to customers' emotions by linking sustain-
ability to driving pleasure, fun and the future."
Media representative
Innovative Mobility
Reliable Partner
Representative from academia and NGOs
"Emissions-free mobility, full-scale closed-loop recycling and humane
working conditions can only be ensured when manufacturers and
suppliers stand shoulder to shoulder. Given its strong public image,
Porsche should aim to be more of a pioneer than ever."
83
"In the future, Porsche should serve as a role model by demonstrating that
ecological, social and financial goals can continue to be met even in the
manufacture of premium products."
Porsche stakeholders comment on what they believe to be the main contributions that the company should
make in respect of sustainability:
→ GRI 102-43, 102-44
Stakeholder statements
82
Stakeholder management
81
Business relevance
Staff development
Business partner
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
improve it until it is ready for series production.
The Porsche safety strategy defines the un-
derlying guidelines, 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.
Go to Zero
S.GO 163E
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 key aim.
Vehicle safety
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "long-term customer relations"
corresponds to the reporting requirements of
GRI 418: Customer Privacy. Porsche gives high
priority to individual data privacy and the right
of data subjects to determine what is done
with their data. The Porsche Data Protection
Management System establishes the frame-
work conditions and the foundations for
Porsche's data protection strategy. The right
of data subjects to determine what is done
with their data is thus permanently anchored
by Porsche within its organisation. In addition,
the company issues global guiding principles
for ensuring modern data protection as a safe-
guard for, and a driver of, the digital transform-
ation. In this way, 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
requirements, Porsche has issued its own
guidelines committing the company to further
data protection principles, including data
economy, purpose-based collection and confi-
dentiality. Due to internal confidentiality
guidelines, however, any reports received on
specific data protection violations are
not published.
In committees that meet regularly, Porsche AG
and representatives of the sales subsidiaries
vote on measures relating to consistent
communication for ensuring long-term cus-
tomer relations. At the Product and Customer
Satisfaction Forum executive body, which
meets every month, the responsible depart-
ments report on current and global develop-
ments concerning product quality and
customer satisfaction.
car-related questions and general inquiries
concerning electromobility and corresponding
services. Running for over 18 months and
featuring digital training modules and media
as well as classroom-based training, Road to
Taycan ensured that all sales advisers world-
wide had been professionally prepared for the
Taycan by the end of the reporting year 2019.
To prepare for the launch of the Porsche
Taycan, "Customer Interaction" provided
customers with advice on all aspects of
electromobility. This campaign also helped
support the dealer network in handling all
technical and non-technical queries relating
to the electrification of the product portfolio.
In the reporting year, the specially developed
training options within the Road to Taycan pro-
gramme prepared Porsche dealers to answer
Direct contact in retail is a key element in
generating customer satisfaction. Against
this backdrop, the ongoing qualification
of employees at the Porsche Centres takes on
fundamental significance. The excite! pro-
gramme specifically trains employees from
the Porsche Centres, sales subsidiaries and
Porsche AG to transform all contact with
customers into a unique experience. This pro-
gramme has been introduced to great effect
in six markets with around 5,500 employees
from over 220 Porsche Centres.
Thanks to digitalisation, the focus is now on the
customer more than ever. Future technologies
enable a more intensive and, above all, more
interactive experience of the world of Porsche.
Depending on the market, customers are
offered a range of innovative communication
channels such as apps, social media, live chats
and messenger services that ensure easier
and faster digital communication between
them and the company. All these communica-
tion options are pooled on the My Porsche
customer portal and the customer relationship
management system in a user-friendly manner.
Personal dialogue with customers is a key
element in the maintenance of long-term
customer relations. Queries sent directly to
Porsche are answered as quickly as possible
by a team of highly qualified specialists. In
the reporting year 2019, around 141,000 cus-
tomer inquiries were processed at Porsche AG
and the global sales subsidiaries alone. Over
the same period, the international Customer
Interaction Centre additionally answered
around 665,000 questions on topics relating
to all aspects of Porsche.
these can be taken into account during the
product development process. Porsche
also obtains regular feedback from its cus-
tomers for the purpose of making ongoing
improvements to existing cars and services.
The company developed the Porsche Advisors
Club in collaboration with Porsche drivers,
thus offering the latter the chance to submit
their opinions and suggestions on cars and
concepts at any time, or upon specific develop-
mental milestones being reached.
The sports car manufacturer sets great store
by asking customers early and often about
their requirements in relation to future car
generations and mobility services so that
Fulfilling corporate responsibility.
Keeping sustainability in mind at all
times. Pursuing clear objectives.
Growing by creating value. Acting.
with responsibility towards society
and the environment. Operating.
comprehensively. Innovative Mobility.
Reliable Partner. Go to Zero.
In the field of customer relations, Porsche sets
high standards with regard to maintaining
long-term customer satisfaction and loyalty.
"Inspiring customers with a unique product
and brand experience" is therefore one of the
four main aims of the Porsche Strategy 2025
Plus. A diverse collection of measures that
are presented to customers as a uniform
package help ensure that this objective is
met. Consequently, the Sales and Marketing
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.
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "economic stability" contributes
to the reporting requirements of 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.
At the same time, Porsche is making major
investments to ensure it retains its innova-
tive capacity and can embrace the digital
revolution. Digitalisation impacts all areas of
the company - from internal processes to the
interaction with customers to the develop-
ment of new products and services. An innov-
ation management system that extends across
all of the company supports the generation
of new impetus, driving the testing of technol-
ogies and trends and encouraging Porsche's
employees to take the initiative to shape
mobility in sustainable ways.
the first to be issued by an automotive manu-
facturer. Over 100 institutional investors,
including banks, pension funds and insurance
providers, are participating in the scheme.
the largest of its kind to date and
The company enjoys excellent profitability and
has set itself the strategic target of a mini-
mum operating return on sales of 15 per cent.
Porsche took a new approach to the refinan-
cing of sustainable projects in the reporting year
by posting a green bonded loan of one billion
euros
Social and ecological sustainability does not
run counter to corporate success but in fact
contributes to this goal. Long-term economic
success is likewise a fundamental requirement
for effective sustainable operations.
Economic stability
The action area Innovative Mobility covers
the following topics identified in the 2019
materiality analysis: economic stability,
long-term customer relations, vehicle safety,
alternative drive systems, vehicle emissions
and new mobility offerings.
Porsche shapes the mobility of tomorrow with
innovative products, pioneering technologies
and attractive services. Questioning the
status quo is part of the company's identity
and continuously ensures its future viability.
The sports car manufacturer has set itself the
demanding task of maintaining its customer
relationships, furthering the allure of the
brand and delivering a sporty driving experi-
ence, all while promoting environmentally
friendly, resource-saving mobility. Porsche
incorporates buyers, suppliers, service
providers and its own workforce as part of
these efforts. Honest collaboration with
customers and partners creates trust, which
in turn generates financial stability as well
as the long-term retention and expansion of
jobs - providing a boost to the regional and
global economy alike. Porsche is all but
unrivalled when it comes to power, dynamics
and the appeal of individual mobility. This is
further reinforced by the essential features
of modern vehicle architecture, such as fuel
efficiency, reduced emissions and light-
weight construction. With the action area
Innovative Mobility, the company unites
pioneering, sustainable mobility with typical
Porsche performance.
INNOVATIVE MOBILITY
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Long-term customer relations ✓
To be optimally prepared for the challenges
posed by the digital transformation, Porsche
identifies and retains qualified professionals
and managers. Key pillars of HR development
at Porsche include training that focuses on
future requirements, ongoing skills acquisi-
tion, and options and routes for internal
development.
The long service life of Porsche sports cars,
their high-quality workmanship and the use of
low-wear materials are all part and parcel of
the Porsche principle. The company focuses on
the environmental effects of its cars at every
step across their entire life cycle - from the
acquisition of raw materials through to manu-
facture, use and disposal.
end, the Fit for the Shop Floor induction pro-
gramme was introduced in the reporting year
for first-level operational managers. The
Porsche Professional Programme for newly
appointed managers from the second report-
ing level has complemented the existing
modular and international management quali-
fication options since 2019.
The energy and environment management
policy covers emissions (air/noise) and
soil protection, dealing with contaminated
sites, hazardous materials and waste, water
and nature conservation, and energy and
resource efficiency. Responsibility for, and the
systematic implementation of, the necessary
steps lies with the Executive Board for
Production and Logistics, supported by the
Environment and Energy Management depart-
ment. The fundamental aim is that every
Porsche employee should be informed about
the effects of his or her work on the environ-
ment. Every employee is called upon to
observe the Group and company guidelines in
order to minimise, or ideally avoid, any nega-
tive impact on the environment.
Energy and emissions 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
relevant 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. Porsche's clear
objective is a zero-impact factory, featuring
production without any negative impact on
the environment.
In accordance with the Global Reporting
Initiative Standards, information provided
on the topic of "sustainable materials"
contributes to the reporting requirements
of GRI 301: Materials.
this promotes the shared development of
alternatives to ecologically or socially incom-
patible production processes and materials.
In addition to the ongoing development of tech-
nical solutions and the search for alternative
materials, Porsche is intensifying efforts to
sensitise its employees and suppliers to aspects
of sustainability. Across the entire value chain,
In order to manufacture the most environmen-
tally friendly products possible, the relevant
environmental aspects play a key role even in
pre-development - for example, during the
testing of renewable raw materials for interior
trim and load-bearing components or as part
of the project award process. In selected assem-
blies of the Porsche Taycan, renewable raw
materials are already being used as standard for
load-bearing assemblies in the interior. This
further reduces the environmental impact and
also the weight.
Electric cars do not cause environmental dam-
age when they are being driven, which helps
to improve air quality in built-up areas. The
existing ecological impact involved in the pro-
duction phase of electric cars, which results
from the raw materials and production process-
es used, may be reduced even further in the
future. Porsche therefore works continuously
with its suppliers to achieve improvements in
battery manufacture - for example, by using
power drawn from renewable energy sources
during the production of battery cells. It aims to
reduce the deployment of the raw materials
used in the traction battery while increasing
the energy density and performance. Module-
level repair concepts for performing necessary
repair work on the traction battery can also help
conserve resources. Porsche teams up with
the Volkswagen Group and partners to enhance
existing recycling procedures and to ensure
that even more raw materials can be returned to
circulation in the future. At the same time, the
company is working on a pilot project in which
used traction batteries are recycled as station-
ary energy stores as part of a second-life
concept following the end of the electric car
life cycle. This represents another significant
contribution to the conservation of resources.
Sustainable materials and the consideration of
environmental effects are the building blocks
of modern, future-ready vehicle architecture and
are also reflected in the company strategy.
Sustainable materials
The action area Go to Zero reflects the
company's approach to the following topics
identified in the 2019 materiality analysis:
sustainable materials, energy and emissions
during production, resource consumption
during production and conservation
and biodiversity.
a car's useful life. When it comes to future
production, Porsche pursues the vision of a
zero-impact factory. This means that company
production processes must have no negative
impact on the environment wherever possible.
Associated measures include continuously
reducing resource consumption and waste,
closing cycles and establishing technologies
of the future.
Within the scope of the Porsche Strategy
2025 Plus, the strategy field of sustainability
in production defines short-term, medium-
term and long-term measures. The environ-
ment and energy efficiency strategy and
the company's own environmental policy are
additional strategic guiding principles. In
this way the company is implementing a
requirement of the international standards for
environmental and energy management,
ISO 14001 and ISO 50001, around which
Porsche's internal specifications and process-
es are based. At its Zuffenhausen site, the
Along the entire value chain, Porsche works
to continuously reduce the environmental
impact of all products and corporate activ-
ities. As part of the Volkswagen Group,
the company has also committed to the two
degrees Celsius target of the Paris Agree-
ment. In this way, Porsche not only considers
the emissions resulting directly from car
use but also those generated throughout the
entire life cycle of each car - from material
procurement to recycling. The goal is to close
material cycles and return used raw materials
to a production process after the end of
Reliable Partner
96
95
In accordance with the Global Reporting
Initiative Standards, information provided
on the topic of "responsibility in the supply
chain" contributes to the reporting require-
ments of GRI 204: Procurement Practices,
GRI 308/414: Supplier Environmental/Social
Assessment, GRI 408/409: Child Labor/
Forced or Compulsory Labor and GRI 412:
Human Rights Assessment.
A guideline established in 2017 by the
Volkswagen Group to address sustainability
within supplier management governs internal
processes and responsibilities throughout
the entire Group. Porsche applied the corres-
ponding requirements in the reporting year
through the adoption of its own brand-specific
sustainability guideline, thereby also promoting
the implementation of the sustainability
requirements within its own supply chain.
into individually configured interior fittings.
These measures are intended to deliver com-
plete transparency within the value chain.
As part of the Volkswagen Group, the company
is an active participant in the industry dialogue
on the German federal government's national
action plan for business and human rights.
These talks are aimed at safeguarding humane
working conditions right across 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 supply
chain, the Global Battery Alliance strives to
ensure social and ecological sustainability
throughout the whole value chain of the raw
materials used in batteries. Within the scope
of its sustainability requirements for suppliers,
Porsche also demands that its battery cell
suppliers only use power drawn from renew-
able energy sources for the production of
batteries. Porsche derived a number of innov-
ations from this initiative during the reporting
year, including technological approaches to
identify the origin of materials. This helped the
company launch its first-ever pilot project
featuring blockchain technology. Porsche uses
this digital technology to enable full-scale
traceability within its supply chain, such as for
leather cockpit parts. The pilots specifically
address the origin and processing of the nat-
ural product, which is then subject to further
processing at the Porsche saddlery and turned
Porsche is well aware of its supply chain
responsibilities and thus rejects child labour,
forced labour and compulsory labour as
well as all forms of modern slavery and human
trafficking. A transparent certificate of origin
and contractually binding sustainability
requirements are important steps in ensuring
fair competition and preventing exploitation
linked to raw materials.
In the reporting year, the Volkswagen Group
defined high-risk raw materials and succes-
sively analysed these over the course of
multiple projects. Porsche is undertaking
analysis of two of the identified high-risk raw
materials in close collaboration with selected
suppliers. In this way, the entire supply chain
is traced all the way back to the origin of
the raw materials. All intermediary suppliers
involved are also identified in order to enable
early detection of human rights risks and to
take measures accordingly. In addition, new
approaches are continuously being developed
within the Group for the purpose of guarantee-
ing responsible raw materials procurement.
A digital learning module also enables
employees from other company departments
to inform themselves about the concept and
the monitoring options afforded by the
S rating.
Suppliers must first complete a self-disclosure
process addressing defined sustainability
criteria and featuring a standardised question-
naire that is well established in the automotive
industry. If the results of this self-disclosure
are unsatisfactory, then an on-site check
takes place. This second step is carried out by
an independent sustainability auditor. Should
the audit continue to return problematic find-
ings, this results in a negative assessment of
the supplier. Porsche then works together with
the supplier to establish a corrective action
plan for ensuring the prompt elimination of
the identified risks. The implementation of the
relevant measures is subject to centralised
monitoring. The suppliers in question will not
be considered during the award process until
they have ensured compliance with the
sustainability requirements. In the reporting
year, 432 employees from the Porsche Pro-
curement department received instruction
on the S rating as part of a mandatory training
module aimed at anchoring sustainability
within operational procurement processes.
GO TO ZERO
Porsche always conducts integrity checks
before entering into business relations with
new suppliers. Following the introduction
of the sustainability rating (S rating) in July
2019, sustainability is now a binding award
criterion for all suppliers of production material
and in the context of general procurement.
This means that sustainability is handled on
the same level as costs, quality, technological
expertise and logistics within the award
process. Risks in the fields of social affairs,
environment and compliance are audited -
including ethically correct behaviour.
sports car maker also complies with Eco-
Management and Audit Scheme (EMAS)
standards a voluntary community environ-
mental management and auditing instrument
developed by the European Union. Porsche
Zuffenhausen has been validated according to
EMAS for more than 20 years, and has fulfilled
the ISO 50001 standard since 2011. 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.
as part of its annual system and process 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 env-
ironment: 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 determine all measures needed
to ensure that potential negative impacts on
the environment are reduced if not avoided
altogether. The Environment and Energy steer-
ing committee carries out regular progress
checks on the predefined goals and initiates
appropriate steps. The steering committee
works cross-departmentally.
High impact
QBX O
success and social responsibility are
inextricably linked.
At Porsche, we embody the idea of
holding each other in high regard.
But our solidarity goes beyond the
factory walls: for us, economic
Communications
Sports
Society
Employees
Employees, Society, Sports, Communications
98
Go to Zero
In addition to the official certifications, Porsche
also carries out internal reviews of compliance
with environmental and energy legislation
97
and construction management structure.
Porsche's neighbours may contact central con-
tact 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.
Generally, environmental and energy manage-
ment staff are always at the disposal of internal
and external company stakeholders to answer
questions or listen to suggestions on the topic
of environment and energy. The goal is to foster
open and transparent dialogue. One example
of this approach is the central complaints
management system within the environment
Conservation and biodiversity ✓
Porsche is committed to helping preserve bio-
diversity. These efforts are focused on the
fundamental goals of conservation and land-
scape maintenance supporting nature and
landscapes in populated and unpopulated areas
so that biological diversity, effective and func-
tioning ecosystems, and the diversity, character,
beauty and recreational value of nature and
landscapes are safeguarded in the long term.
In accordance with the Global Reporting Initia-
tive Standards, information provided on
the topic of "resource consumption during
production" contributes to the reporting
requirements of GRI 303: Water, GRI 305:
Emissions and GRI 306: Effluents and Waste.
The data is measured using the water con-
sumption, the direct and indirect greenhouse
gas emissions and the amount of effluents
and waste.
Logistics is already using three natural gas
trucks, one hybrid truck and two electric trucks
as a result. A new small parts warehouse has
also entered operation at the Leipzig site,
featuring innovative shuttle technology that
cuts its energy consumption by 50 per cent
compared to conventional facilities. In 2019
further environmentally friendly measures in the
area of vehicle transport were also introduced.
The completed sports cars are transported
away from the Zuffenhausen site in a newly
developed long truck featuring a larger capacity
as part of an innovative process that saves over
2,000 journeys per year.
In Logistics, too, sustainable planning and con-
trol were further advanced in 2019 as part
of the green logistics strategy. The strategic
approach is characterised by across-the-board
optimisation. To minimise 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 the reporting year.
waste, harnessing low-waste technologies and
deploying sustainable disposal solutions are
key elements of Porsche's waste management
concept. The company's environmental protec-
tion resource regulation serves as an internal
guideline and is also binding on suppliers.
Resource consumption during production ✓
Porsche strives to achieve a balanced environ-
mental performance. Important aspects in
this regard are the use of water as efficiently as
possible through circulation systems and
multiple reuse and the careful handling of con-
taminated production waste water. Avoiding
on the topic of "energy and emissions during
production" in this report contributes to the
reporting requirements of GRI 302: Energy and
GRI 305: Emissions. These are measured using
the direct and indirect energy consumption
values as well as the direct and indirect green-
house gas emissions.
In accordance with the Global Reporting Ini-
tiative Standards, information provided
Given the expansion of production, constant
growth in employee numbers and comprehen-
sive building work undertaken at the sites,
Porsche's energy consumption is now higher
than in previous years. By switching to power
drawn from renewable energy sources, how-
ever, the company has succeeded in reducing
on-site CO₂ emissions per vehicle produced.
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "conservation and biodiversity"
contributes to the reporting requirements of
GRI 304: Biodiversity.
The relevant key labour standards from the
International Labour Organization (ILO) serve
as the foundation for the sustainability
requirements. 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
activities. These sustainability requirements
are enshrined in supply contracts, the violation
of which can result in reviews, formal state-
ments and, if necessary, the termination of the
business relationship.
The concept of sustainability in supplier rela-
tions and the code of conduct updated in
the reporting year compel all parties to observe
and comply with the high environmental,
social and human rights standards in the
International Chamber of Commerce's charter
and the OECD's guidelines for long-term,
sustainable development.
Trust-based cooperation between Porsche
and its suppliers is based on shared values
and strict compliance with the sustainability
requirements defined in the Volkswagen Group.
In accordance with the Global Reporting Initia-
tive Standards, information provided on
the topic of "occupational health and safety"
contributes to the reporting requirements
of GRI 403: Occupational Health and Safety.
This is measured on the basis of the following
key figures: number of accidents, workdays
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.
statutory requirements, with the safety
standards being permanently updated in
the process.
Safety experts design workstations, equipment
and installations with the focus on prevention
and safety. The observation and monitoring
of construction and installation sites by special
construction site experts exceeds the
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 compli-
ance management system and applies to all
employees. The managers ensure that their
employees are familiar with and comply with
the provisions of this guideline. Specialists
in occupational safety and works doctors are
available to all employees in an advisory cap-
acity. All staff members are also represented
through the legally defined representatives
in the occupational safety committees in
accordance with the Occupational Safety Act.
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 implemen-
tation of legal provisions. This system helps
to prevent accidents at work and occupational
illnesses as far as possible.
A motivated and capable workforce is Porsche's
most important resource. Porsche health
management has a key role to play in ensuring
that the company can continue to develop,
produce and sell exclusive cars in the future,
too. Alongside the occupational healthcare
provided to employees at the various sites,
new occupational health promotion measures
are now also available to certain areas. For
example, Porsche employees may also arrange
to have a thorough medical check-up and
obtain preventive 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 optimum nutrition,
relaxation techniques and effective self-
management. Employees can also access indi-
vidual physiotherapy advice at the workplace.
Occupational health and safety ✓
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "corporate co-determination"
in this report contributes to the reporting
requirements of GRI 402: Labor/Management
Relations and GRI 407: Freedom of Association
and Collective Bargaining.
participates actively in the social partnership
between the metal and electrical industry
and the IG Metall trade union.
employers' association, the company also
All company employees are covered by collec-
tive wage agreements and works agreements.
At Porsche, it is the respective role based on
the remuneration framework agreement that
is used to determine equitable and fair pay.
An additional package agreed in relation to
the future labour market combines a variety of
working time regulations such as flexitime,
voluntary sabbaticals and care leave. As a
member company of the Südwestmetall
Compliance and integrity
Compliance with applicable laws and acting
with integrity are essential to responsible
operations. The relevant guiding principles
present integrity as an internal attitude, while
compliance is framed as conforming to rules.
a supervisory board with equal representation,
the Works Council committees and the
works agreement database on the intranet.
One of the key pillars of Porsche's corporate
culture is corporate co-determination. Porsche
benefits from continuous dialogue, even on
critical issues, as well as open, direct commu-
nication across all levels of the organisation.
The employer and the Works Council have
traditionally engaged in a continuous exchange
on all issues affecting the staff and the com-
pany. 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.
→ GRI 102-41
Corporate co-determination
92
Reliable Partner
91
In accordance with the Global Reporting Initia-
tive Standards, information provided on the
topic of "staff development" contributes to the
reporting requirements of GRI 404: Training
and Education. This is measured and reported
on the basis of the following key figures: the
number of participants in training measures
and the average training hours per employee.
the workforce with the topic of high voltage in
a legally sound manner while communicating
basic knowledge of high-voltage applications
and the fundamentals of electromobility.
This departmental and HR development joint
project won the Comenius EduMedia Award.
Against the background of the Porsche Strategy
2025 Plus and the far-reaching changes in
the automotive industry, the structured cre-
ation and expansion of future-oriented skills
among all employees is a vital aspect of HR
development activities. The strategic skills
management methodology has been devel-
oped accordingly. Based on current and antici-
pated future roles, the required skills, job
descriptions and requirements are qualitatively
and quantitatively recorded and compared
with one another in a systematic process. Any
identified skill gaps can thus be addressed at
an early stage through targeted retraining and
further training, recruitment and new priorities
in ongoing training. Strategic skills manage-
ment enjoyed a successful roll-out in the tech-
nical development of Porsche AG during the
reporting year and was transferred to regular
operations. It is set to be implemented in all
areas of Porsche AG from 2020.
The Porsche learning platform is also increas-
ingly being used for qualification projects
with a broader scope. For example, the digital
learning module "High voltage instruction -
vehicle technology basics" introduced at the
start of the reporting year is intended for all
employees of Porsche AG and its German
subsidiaries. This module aims to familiarise
The comprehensive range of training oppor-
tunities is continuously being expanded and
optimised. Here, too, skills relating to the digital
world and the digital mindset are crucial. In
2019, Porsche began realigning the content
and didactics of its management training
options while also expanding the existing
training portfolio for all employees to include
new courses featuring the blended learning
approach, such as working in virtual teams.
In this process, the annual qualification and
development appraisal represent the key
foundation for individual qualification and
development planning. Core resources for digi-
tal learning are the Porsche learning platform
introduced in 2017 and the media laboratory
opened the following year. These enable the
departments to design and produce their own
digital learning formats with the help of HR
development. The fact that there are now over
26,000 active user profiles illustrates how
intensively employees use the platform and
engage in self-managed learning to actively
advance their skills.
Employee support and qualification is not only
a central component of the Porsche culture
and code but also firmly anchored in the
Porsche Strategy 2025 Plus. The digital revo-
lution in particular is placing new demands on
the workforce. With this in mind, the Fit for
Digit@l initiative launched in 2017 was rolled
out at a series of additional company sites.
In the reporting year, the primary focus was on
the communication of external trends and the
acquisition of in-depth knowledge within the
Porsche action areas as part of the digitalisation
strategy. The high level of interest across
the workforce is reflected in the more than
12,800 completed digital learning modules on
topics such as agile working at Porsche and
automated driving as well as the 500-plus
attendees at seminars and workshops on the
digital transformation at Porsche.
The exceptional role played by corporate
co-determination is also reflected in the age
of digitalisation. Employee representation at
Porsche is incorporated early in the design
process to ensure optimum and lawful cover-
age of areas with essential relevance to
corporate co-determination, such as the intro-
duction of IT systems that can monitor the
behaviour or performance of employees, data
protection measures and regulations pertaining
to electronic communication media. Close
cooperation between the employee represent-
atives and the company itself is also crucial to
the process of identifying corporate solutions
for the new digital working environment.
Internal media keep staff up to date on current
issues additionally and particularly from the
perspective of employees and their elected
representatives. In addition, the Works Council
offers employees a platform for comprehen-
sive information and open discussion with its
works meetings, which take place at the
individual Porsche sites in Germany. It is also
established practice at Porsche to inform
employees and their elected representatives
about important operational changes, doing
so in as timely and comprehensive a manner
as possible. This is done in compliance with
national laws, applicable collective bargaining
agreements and works agreements. Adher-
ence to this corporate practice is ensured in
a number of other ways, including through
Compliance
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 six areas of
compliance, such as anti-corruption measures
and money laundering prevention. In order
to avoid any infringements of the law and to
help its employees act in accordance with
legal and statutory provisions, Porsche has had
a compliance system in place for many years
now. This system includes a chief compliance
officer, compliance officers at Porsche AG and
local compliance officers at the Group member
companies. The compliance programme
encompasses a range of different preventive
and reactive measures.
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 employees
have access to confidential advice as well
as training and information on relevant compli-
ance 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 documents the
expectations of managers and staff in terms of
the responsibility they must assume for com-
pliance as a member of society, as a business
partner and at the workplace. The rules are
When Porsche was incorporated into the
Volkswagen Group, much of its Procurement
division was integrated into the Group's organ-
isational structure, and the existing structures
and processes were adapted accordingly. This
means that Porsche's procurement decisions
are largely coordinated and agreed upon with
the Volkswagen Group.
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 the
supply chain of companies. Two examples that
illustrate this development are the higher
delivery figures driving growth in supply parts
and the responsible procurement of innovative
components. Together with its suppliers and
sub-suppliers, Porsche makes every effort
to ensure its supply chain features maximum
sustainability and added value.
In accordance with the Global Reporting
Initiative Standards, information provided on
the topic of "compliance and integrity"
contributes to the reporting requirements of
GRI 205: Anti-corruption, GRI 206: Anti-
competitive Behavior, GRI 307: Environmental
Compliance and GRI 419: Socioeconomic
Compliance.
Integrity management was expanded in almost
all areas of the company during the reporting
year. One example is the recruiting process,
in which aspects of integrity are brought up
during candidate interviews. New employees
are also sensitised to the topic of integrity
in the course of the introductory events. On
top of this, the company has also set about
establishing a multiplier network that facilitates
the exchange of existing integrity initiatives
and thus helps identify interfaces and oppor-
tunities for synergy.
The topic of integrity is a key component of
the personnel development programmes and
was further expanded in 2019. Dialogue
events relating to Porsche's values and culture
have also been established in the corporate
units to sensitise employees to matters of in-
tegrity. In addition, classroom-based sessions
are used to remind managers of the crucial
importance of this topic. These individuals
must serve as role models, generate awareness
among staff and create a working environment
in which each employee can speak their mind
openly and honestly.
94
Reliable Partner
93
be taken with the involvement of HR and the
respective managers.
An established catalogue of internal communi-
cation measures has been deployed in order
to progressively sensitise the workforce to the
topic of integrity. This is subject to regular
improvements. Behavioural integrity within the
company organisation is also featured as a topic
in the annual Porsche employee survey, known
as the mood barometer. In the event of any
notable findings, the causes for these will be
identified, and suitable measures may also
Integrity means acting responsibly, resolutely
and with personal conviction in accordance with
ethical principles. As a fixed component of the
strategic guidelines of Porsche, a high value is
placed on integrity within the scope of collab-
oration. Acting with integrity is also indispens-
able in retail, which is why it has been anchored
in the Porsche service standards as the highest
value. This high awareness of integrity is
reflected in its successful implementation in
the responsible committees and steering
committees. Regular reporting to the Executive
Board was also introduced in the reporting year.
Integrity
There is also a self-administered test designed
to help employees make decisions in case of
doubt. Porsche's code of conduct is implement-
ed in a variety of ways, such as being published
on the Internet and intranet, presented during
training and information events, and addressed
in the relevant digital learning module. All new
employees are also provided with a hard copy
in the form of a brochure at the welcome event
on their first day.
- Illustrative examples that employees might
face on the job are provided for each topic
in the workplace: occupational safety
and healthcare; data protection; security and
protection of information, knowledge and
intellectual property; IT security; handling
company assets
- 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; account-
ing and financial reporting; taxes and cus-
toms; fair and free competition; procurement;
export control; prohibition of insider trading
- as members of society - human rights; equal
opportunity and equal treatment; product
conformity and product safety; environmental
protection; donations, sponsorships and
charity; communication and marketing;
political lobbying
The code of conduct was updated in 2019 to
reflect the requirements of the Group guideline
on compliance management. This code sets
out all aspects of employees' responsibility for
compliance:
Porsche employees can find further infor-
mation on the courses offered by the compli-
ance officers 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, notecards
and brochures.
All compliance training at Porsche is com-
pulsory. The amount of training undertaken by
compliance officers is monitored over the
course of the year, with the final status being
reported to the Compliance Council, the
Executive Board and the Supervisory Board.
Since 2018, attendance at compliance
seminars has been recorded in compliance
employees' training file.
New employees are familiarised with the com-
pany's compliance culture during the Porsche
Warm-Up event, an introductory training ses-
sion generally held monthly. The event is based
around the World Café, in which newly hired
staff have the chance to look intensively at the
code of conduct and basic rules on avoiding
corruption, tackling specific cases before
presenting their solutions to the full group.
In addition, the compliance image film and a
presentation of the most important require-
ments and expectations for employees round
off the introduction to the topic of compliance.
For example, since the relaunch of Porsche's
programme for junior managers in 2019,
compliance training has been available in
various formats, 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, including the code of conduct, via
an online offering. As part of the presentation
via Skype for Business, participants can get
involved in a live multiple-choice session. The
speaker can use the voting results to provide
qualitative feedback and respond to any unans-
wered questions at the end. All compliance
issues - including anti-corruption measures,
money laundering prevention and antitrust law
- are presented by compliance officers during
the classroom-based sessions. As well as
presentations and case studies, there are also
workshop sessions involving group work where
case studies and dilemmas are tackled with
the help of a board game.
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 organ-
isational aspects such as the number and
frequency of events and the capacities need-
ed. 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 are held on current
or relevant topics, for the benefit of areas
faced by specific risks, or on request.
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, digital
learning modules on mandatory topics such
as the code of conduct and voluntary options
such as data protection are also available.
The range of digital learning modules is to be
gradually extended to include more compli-
ance issues in the future.
Porsche's central compliance help desk offers
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 confiden-
tially to report (possible) breaches of the rules,
such as criminal acts or serious irregularities.
Outside the company, Porsche managers,
employees, customers and business partners,
as well as public officials and other external
individuals, can report legal violations anonym-
ously to two ombudspersons. All of the
information received is carefully examined
according to the requirements of data protec-
tion law, and any violations found are respond-
ed to appropriately in line with the relevant
provisions of employment and co-determin-
ation 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 reactive measures implement-
ed in the Porsche Group.
also set out in guidelines, covering such areas
as how to avoid corruption or violations of anti-
trust law, how to handle conflicts of interest
or the receipt of gifts, and how to prevent
money laundering. To ensure and promote law-
ful behaviour over the long term, all managers
and employees are given regular information
and training tailored to the specific risks and
target groups.
Staff development is founded on professional
training as well as the support and qualifi-
cation of students - for example, through
dual-study programmes or the Porsche Trainee
Programme. Another important component
is hiring all apprentices who pass their final
examination on permanent contracts. Through-
out their careers, employees have access to
a diverse range of programmes for their sys-
tematic professional development on all levels.
These include the Warm-Up introduction
programme, the Porsche Development Pro-
gramme to prepare candidates to take on
management roles, and specific qualification
and talent promotion measures tailored to the
target group in the field of production. To this
Medium impact
"Porsche needs to remain aware of its responsibility and be open to
unconventional ideas without losing sight of its brand heritage."
Equal opportunities and
diversity
Low impact
pp. 87-88
Long-term customer relations
p. 98
Resource consumption during production
pp. 97-98
Energy and emissions during production
→ GRI 102-44, 102-46, 102-47
Materiality matrix ✓
Relevance for stakeholders
Conservation and biodiversity
p. 98
company values, the
Strategy 2025 Plus,
the risks and oppor-
tunities for the company,
and its corporate goals.
The resulting findings
will be used for the
The materiality matrix links the results of the
stakeholder survey with the views of the
Sustainability Expert Group expressed during
the workshop. It establishes a correlation
between the direct impact that the business
activities have on the environment, employees
and society (x-axis) and their relevance for
stakeholders (y-axis). As a third dimension to
this analysis, Porsche rated the relevance
of the 18 key topics to the company's business
and illustrated the results of the assessment
in differently sized, circular ideograms. The de-
gree of business relevance of the individual
topics is shown by means of four levels: none,
low, medium and high.
A workshop for members of the Sustainability
Expert Group and representatives of the rele-
vant departments at Porsche was held during
the autumn of 2019. In the course of a multi-
stage process, this workshop evaluated the
impact of Porsche's business activities on the
environment, employees and society in terms
of the 18 defined topics. The importance of
this topic to the business activity of a sports
car manufacturer was also assessed during the
workshop. During the reporting year, Porsche
pooled the results in a materiality matrix, iden-
tified the most important issues and illustrated
how these were linked. The resulting findings
will be used for the ongoing development of
the company's sustainability strategy. In this
report, Porsche refers to all topics resulting
from the company values, the Strategy 2025
Plus, the risks and opportunities for the com-
pany, and its corporate goals.
The next Porsche stakeholder survey is sched-
uled for 2021 and will be expanded to cover
additional markets.
issues with the Porsche Executive Board, using
these talks as the basis for determining appro-
priate measures. Cooperation with the Council
is to be stepped up even further in the future.
As well as completing a topic evaluation, the
Porsche stakeholders demonstrated in their
answers to the additional questions that they
perceived climate and environmental impacts,
changing mobility needs and the scarcity of
energy and resources to be the greatest chal-
lenges facing the company both now and in
the near future. These views are also reflected
in the degree of relevance attributed to the
topic by the stakeholders. The surveyed stake-
holders also confirmed the view that there is
no conflict in principle between sustainability
and the manufacture of premium sports cars,
with 81 per cent of respondents confirming
that they do not see these aims as generally
contradictory.
In coordination with internal and external ex-
perts, relevant sustainability aspects within
the three action areas of Innovative Mobility,
Reliable Partner and Go to Zero were identified
prior to the online survey, and 18 key topics
were put to a vote.
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 and future challenges. In autumn
2019, various stakeholders were invited to
evaluate Porsche's sustainability activities for
the third time as part of an anonymous and
international online survey. A total of 1,459
people from Europe and China completed the
survey, with around 79 per cent of responses
coming from European markets and approxi-
mately 21 per cent from China. Alongside
customers, business partners, analysts/inves-
tors, politicians and representatives of public
authorities, media outlets, and representatives
from NGOs and academia, this survey was the
first to feature Porsche employees on a wider
scale. Owing to the large number of employee
responses, the internal and external stakehold-
ers were assessed using a 50:50 weighting.
Furthermore, the responses from external
stakeholder groups were weighted equally.
→ GRI 102-40, 102-43, 102-44, 102-46,
102-47, 102-48
Stakeholder survey and materiality ✓
ongoing development
of the company's
sustainability strategy.
In this report, Porsche
refers to all topics
resulting from the
Vehicle
safety
During individual expert interviews, members
of the Sustainability Council also had the
chance to provide detailed feedback on sus-
tainability at Porsche, as well as on the potential
opportunities and risks. They presented
specific recommendations for action to further
shape Porsche's engagement. Key areas
of discussion included new mobility options,
alternative drive systems and vehicle emis-
sions, and stakeholder dialogue. During the
reporting year, the members of the Sustainabil-
ity Council discussed their ideas on these
Alternative drive systems
p. 88
and safety
p. 93
Occupational health
Compliance and integrity
pp. 93-95
in the supply
chain
Responsibility
New mobility
options
pp. 89-90
p. 97
Sustainable materials
Impact on the environment, employees and society
pp. 79-82
pp. 95-96
p. 93
Stakeholder dialogue
pp. 88-89
Economic stability
Staff development
p. 92
Attractive employer
p. 87
Social commitment
pp. 117-120
Corporate co-determination
pp. 91-92
p. 91
and vehicle emissions
Fit and healthy with the Porsche job bike
In providing a quality company bike, Porsche
promotes the health of its employees, pro-
tects the environment, expands its corporate
mobility options and boosts its role as an
attractive employer. Employees have been able
to enjoy the benefits of this company bike
since April 2019, also profiting from tax relief
and attractive terms by paying directly from
their gross salary. Eligible employees can
obtain up to two (e-)bikes for unlimited use
through the Porsche job bike programme.
This new remuneration system for the top
management group comprises fixed and
variable components. Fixed basic remuner-
ation is regularly checked and adjusted if
necessary. Two-fifths of variable remuneration
consists of an annual bonus with a one-year
assessment period, while three-fifths comes
from a long-term incentive (LTI) known as a
performance share plan covering the following
three years. Where the annual bonus is based
on results in the relevant financial year, the
performance share plan LTI - which is linked
to the performance of virtual preference
shares in the Volkswagen Group over the ensu-
ing three years has a multi-year future
assessment period.
Digital personnel processes are key to enabling
the continuous optimisation of processes.
This relates not only to efficiency, such as
through networking, integration and automa-
tion, but also to standardisation and ensuring
adherence to regulations. The digitalisation
of personnel processes always takes place in
close cooperation with employee representa-
tives and in strict compliance with require-
ments pertaining to data protection and
data security.
The remuneration system for the top manage-
ment group at Porsche was reworked as of
1 January 2019. This move, which coincided
with the standardisation of the remuneration
system for brand Executive Board members
and the top management group at the
Volkswagen Group, aims to ensure suitable
and attractive remuneration on a national and
international level. Criteria include the tasks
of the individual members of the top manage-
ment group, economic conditions, success
and the future prospects of the company. Also
relevant is the appropriateness of the remu-
neration based on the respective peer group
and the remuneration structure.
New remuneration system for top
management group
Porsche ideas management saw the introduc-
tion of a continuous digital process throughout
the company in the reporting year, enabling
nearly twice as many ideas to be submitted
compared with the previous year. This also led
to an increase in the number of employees
contributing to the success of Porsche beyond
their own range of duties. In addition, the
quality of the ideas rose while the processing
time fell. Further foundations were also laid for
the coming financial year by means of a more
flexible regulation incorporating new target
groups into Porsche ideas management with
attractive framework conditions.
Porsche ideas management
In the reporting year, the company-wide "My
Porsche Cockpit" portal was again expanded to
include various new digital processes such as
making digital claims for a particular employee
bonus. This portal is now available for Porsche
employees to use on their mobile devices. The
company continues to pursue an end-to-end
digital process for job postings and place-
ments, involving the digitalisation and integra-
tion of all steps from personnel requisition, job
search and application through to master data
transfer upon appointment. Alongside this,
Porsche is proceeding with the introduction of
SAP Success Factors as its standard HR IT
application across the Group. This cloud-based
personnel information system opens the door
to a wide variety of new options in HR, such
as quicker access to personnel information,
greater transparency of data-based decisions
and the implementation of full-scale talent
management. And the use of HR analytics
and new technologies, including artificial intel-
ligence and process automation, will help
ensure efficient HR work in the digital age over
the long term.
2017 2018
102
Employees, Society, Sports, Communications
2019
2016
2015
0
HR Compliance organisation
35,429 V
Digitalisation of personnel processes
The new corporate unit HR Compliance, which
was created in the reporting year, is tasked
with ensuring that compliance is sustainably
established within strategic and operational
HR work as well as providing corresponding
guidance. HR Compliance is entrusted with
systematically promoting and furthering com-
pliance and integrity in Porsche's personnel
tools, measures and processes. It is also
responsible for advising, informing, sensitising
and qualifying HR employees, particularly
within operational HR.
learning platform, comprising digital learning
modules, learning videos and webinars - a
threefold increase on 2018. Even classic
non-digital qualification formats expanded by
over 30 per cent during the reporting period,
while qualification training addressing future-
oriented topics grew by more than 45 per cent
during the year.
Within the scope of "Together4Integrity@
Porsche", the integrity and compliance
initiative of the Volkswagen Group, the HR
Compliance division shares responsibility for
implementing specific measures in various
HR processes at all Porsche Group companies
worldwide by the end of 2025.
32,325
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Employees, Society, Sports, Communications
103
the change.
requirements on the
workforce. It is therefore
important to sensitise
and motivate all
employees for the
transformation, encour-
aging them to play an
active role in shaping
The digital transform-
ation places new and
significantly altered
The "Lernen@Porsche-Community" group has
evolved into an established discussion plat-
form boasting 400-plus members. Regular
community meetings focus on trends and
case studies for promoting sustainable learn-
ing, new functions on the Porsche learning
platform and expert insight into the various
qualification projects at the different depart-
ments. This open and interdepartmental
exchange on aspects of best practice is al-
ready establishing synergies that will be used
for subsequent qualification programmes.
FIT FOR DIGIT@L: PORSCHE MANAGERS AT THE INTERACTIVE BEACON CHALLENGE
More than 400 hours' worth of virtual learning
resources are now available on the Porsche
The platform is also increasingly being used
for qualification projects with a broad scope.
For example, the digital learning module "High
voltage instruction - vehicle technology
basics" introduced at the start of the year is
intended for all employees of Porsche AG and
its German subsidiaries. This departmental
and HR development joint project has been
honoured with the ComeniusEduMedia Award.
Core resources for digital learning are the
Porsche learning platform introduced in late
2017 and the media laboratory opened in
the reporting year. HR development and repre-
sentatives from the various departments and
subsidiaries are constantly expanding the
scope of this platform. The fact that there are
now over 30,000 active user profiles illustrates
how Porsche Group employees use the plat-
form, engaging in self-managed learning to
actively advance their skills.
Porsche learning platform, media laboratory
and learning community
The digital transformation places new and
significantly altered requirements on the
workforce. It is therefore important to sensi-
tise and motivate all employees for the trans-
formation, encouraging them to help shape
the change. The "Fit for digit@l" knowledge
campaign, which started in 2017, focused on
two key areas in 2019. Firstly, the range of
content was expanded as the variety of activ-
ities involved in Mission D, innovation manage-
ment and the action areas of Strategy 2025
Plus featured many tangible examples of
digitalisation at Porsche. Short videos, digital
learning modules and brief presentations were
used to communicate specific aspects of
added value and use cases that help give a
face to the company's digital transformation.
Secondly, new face-to-face training sessions
supported by digital elements were introduced
to the knowledge campaign in the flipped
classroom format. While these resources are
primarily intended for employees from
Production, especially as part of the Taycan
qualification drive, the 2019 Porsche Manage-
ment Conference saw managers take part
in an interactive beacon challenge to measure
their knowledge of digitalisation. These
wide-ranging activities have enjoyed a positive
reception even outside of the company, with
the HR Excellence Award nomination in the
category of Change Management serving as
further testament to the sheer innovativeness
and effectiveness of this Porsche initiative.
Knowledge campaign "Fit for digit@l"
significantly expanded
Porsche introduced mobile working in 2019:
this model offers even greater choice than
working from home, as it enables flexible
working hours at flexible locations for the bene-
fit of the company and employees alike.
Aimed at achieving even greater compatibility
between work and personal lifestyles, it
has been very well received in areas where
mobile working is a feasible option.
Mobile working
In addition to establishing worldwide HR com-
pliance reporting and corresponding effective-
ness monitoring, HR Compliance assumes
the role of a personnel coordinator and serves
as the interface to the whistleblower system
in Human Resources and Social Affairs. As data
protection coordinator for the department,
HR Compliance also ensures greater implemen-
tation of and sensitisation to employee data
protection with regard to HR processes
and tools.
27,612
The Ferry Porsche
Foundation focuses on
social responsibility in a
wide variety of ways,
centred on assisting
children and young people,
especially in and around
the company's factory sites.
5
119
104
CHAMPIONS' BREAKFAST WITH HANDOVER OF CHEQUES
The Ferry Porsche Foundation also launched the
Ferry Porsche Challenge in 2019. This cam-
paign has been established to promote social
commitment at Porsche's various sites and
honour those who undertake volunteer work,
with the foundation insisting on sustainable,
innovative and creative concepts. Around 600
associations and institutions have submitted
their applications and must meet the key fund-
ing criteria of charitable status, local ties to
Stuttgart or the Leipzig region, and a project
focus within one of the five funding areas. After
selecting the winners, the foundation will award
100,000 euros each to three first-place finish-
ers, 50,000 euros each to six runners-up and
25,000 euros each to 10 third-place entrants
in 2020. In addition, every project nominated
for the final will receive at least 5,000 euros in
funding and all nominated finalists will also
be eligible for the special prize of 75,000 euros.
environmental education projects, for ensuring
inclusion in sport and for the education of
children and young people affected by social
and health-related disadvantages. In addition
to education and science, the foundation also
provides support in the fields of sport, culture,
the environment and social issues. Its new
education initiative is also based around these
focal points and is aimed at helping young
talents from different backgrounds, spreading
knowledge, and providing socially disad-
vantaged individuals with better access to
qualification and training programmes.
The "Ferry Porsche bildet" initiative sees the
foundation provide approximately one million
euros for gifted students at schools in
disadvantaged areas around Stuttgart for
The Ferry Porsche Foundation has also made a
statement with its own dedicated campaigns,
not least in donating the 200,000 euros
raised by the 2019 six-hour run to half a
dozen charitable organisations and associ-
ations recognising them as "champions of
everyday life". A sum of 33,333 euros each
was awarded to the Olgäle Foundation
for sick Children, the Stuttgart Hospice for
Children and Young People, the Gustav Werner
School in Zuffenhausen, the Neuwirtshaus
School in Zuffenhausen, the Frühstück für
Kinder association that provides breakfasts to
schoolchildren, and the Lebenshilfe Stuttgart
organisation for the mentally disabled.
Not only does this foundation support projects
in the fields of science, research, training and
education, it also promotes cultural and
environmental initiatives while aiding people
in challenging social situations.
Ferry Porsche Foundation
The guest performance by Leipzig Gewand-
haus Orchestra at the Liederhalle Stuttgart
concert hall on 24 October 2019 was open
to all, with Porsche streaming the event live
to the Dorotheen Quarter using two Panamera
cars that were fitted with Burmester sound
systems. Guests at the Sansibar restaurant
were also able to listen to the concert
through Burmester systems. The programme
was led by Gewandhaus conductor Andris
Nelsons and featured pieces from Gustav
Mahler, Robert Schumann, Richard Wagner
and Felix Mendelssohn.
Leipzig Gewandhaus Orchestra
On 20 and 21 July 2019, Porsche and the
Stuttgart Ballet teamed up for the showpiece
event Ballet in the Park. The performances
from the opera house were broadcast live on
a big screen at the Oberer Schlossgarten in
central Stuttgart, giving thousands of ballet
fans the chance to follow along free of charge.
Viewers were treated to the Stuttgart Ballet's
"Shades of White" evening on the Saturday,
while the Sunday featured a matinee perform-
ance by the John Cranko School. Porsche has
been the main sponsor of the Stuttgart Ballet
since 2012 and has now collaborated on eight
editions of Ballet in the Park. The company
provided 10 million euros towards the rebuild-
ing of the John Cranko School, thereby ensur-
ing long-term support for future generations
of ballet dancers.
Stuttgart Ballet showpiece
Latvian conductor Andris Nelsons also paid a
visit to Porsche's Leipzig factory on 14 January
2019 after all, rhythm and harmony are
crucial to the fields of music and automotive
manufacturing alike. Following a tour of the
assembly department led by Gerd Rupp, Chair-
man of the Executive Board at Porsche Leipzig
GmbH, Nelsons enjoyed a thrilling ride around
the factory's very own FIA-certified circuit in a
Porsche Panamera Turbo S E-Hybrid.
Sixth edition of open-air concert series
On 28 and 29 June 2019, Leipzig
Gewandhaus Orchestra played a number
of excerpts from major operas as part of
the "Klassik airleben" summer concert series.
Over 60,000 guests were treated to a free
open-air classical music experience in the
city's Rosental park. The event was dedicated
entirely to Italian opera, with Gewandhaus
conductor Andris Nelsons leading the
orchestra through a variety of arias, duets
and orchestral works by Verdi, Puccini
and Rossini in its final event of the season.
Soprano Kristine Opolais and baritone Thomas
Hampson took on solo parts from works in-
cluding La traviata ("The Fallen Woman") and
Il barbiere di Siviglia ("The Barber of Seville").
This marked the sixth open-air event pre-
sented by Porsche under the "Klassik airleben"
banner, with the sports car manufacturer
having served as a Global Partner of the
Gewandhaus Orchestra since 2011.
Cultural sponsoring
On top of this, 4,000 trainees and school pupils
in years 10 and up from all over Germany
submitted their start-up proposals to the
"Jugend gründet" entrepreneurship competition
in 2019. Since 2016, Porsche has been the
main sponsor of this business plan and simula-
tion contest organised by the Steinbeis Innov-
ation Center for Business Development at
Pforzheim University. Porsche also awarded its
special "Digital Future" prize for the second time
at this event, honouring the InteCreate team
comprising six female school pupils whose
video game plug-in enables people with visual
impairments to be part of the gamer com-
munity. As part of their reward, the successful
entrants were invited to the Porsche Digital
Lab in Berlin.
Employees, Society, Sports, Communications
29,777
120
On the reporting date, 31 December 2019, the
company counted 35,429 employees, 9.6 per
cent more than at the end of the previous year.
A significant driver of jobs is the Taycan, which
celebrated its world premiere in September
2019. During the reporting year, Porsche took
the high level of demand as its cue to hire
a further 500 staff for the production of this
electric sports car at its Zuffenhausen site -
in addition to the 1,500 new recruits that had
already been announced.
10
15
20
20
25
24,481
Employees
Porsche AG Group
101
At Porsche, our focus
is on people. That's
why we're sticking to
our existing personnel
strategy - especially
in an age characterised
by enormous change
within the automotive
industry and ever-
advancing digital
transformation.
The initiative extends far beyond needs-based
workplace design, however, and is ultimately
a holistic concept for shaping the future of
work and collaboration. Qualifying employees
to prepare them for modern working methods
such as agile project work thus represents
another crucial component of this concept, as
does the adaptation of roles, structures and
responsibilities in order to ensure the neces-
sary freedom to take decisions and act accord-
ingly. In addition, increasingly optimised and
digitised workflows plus the use of artificial in-
telligence and process automation will make
a considerable contribution to further reducing
the proportion of repetitive tasks. This helps
create extra headroom for tackling relevant
future plans in a more intensive manner.
A key strategic goal within the Personnel
Strategy 2025 Plus is to further enhance the
working environments at Porsche, which is
the motivation behind the interdepartmental
initiative "New working environments". This
sees employees being actively integrated into
the process of establishing future-oriented
workplace surroundings in which they
can adopt an activity-based approach to
their work.
New working environments
to overarching interdisciplinary strategies on
a company level.
In the reporting year, the personnel strategy
was adapted to meet the changing framework
conditions and was systematically enhanced -
resulting in the Personnel Strategy 2025 Plus.
As regards content, strategically relevant
issues are tackled on the basis of five clearly
defined and needs-focused action areas. These
strategic fields not only address personnel-
related focal points, they are also directly linked
The working world is already changing fast -
and the pace of change will only increase over
the coming years. In light of this, the role of
HR must and will undergo fundamental adjust-
ment. Managing the increasing level of com-
plexity and making the right decisions even in
the face of growing uncertainty are more crucial
than ever to the clout and success of an organ-
isation. In order to avoid being overtaken by
change, it is necessary to specifically identify
new developments at an early stage by means
of systematic trend scouting. Major trends such
as digitalisation are powering paradigm shifts
and spurring change in the working world. These
trends flow into the established tools of innov-
ation management and personnel strategy, where
they undergo further structured processing.
Personnel strategy and innovation
management
The company's growth presents Porsche with
big challenges, which can only be mastered
if everyone involved pulls together. This means
that constructive cooperation with the Works
Council, its committees and IG Metall are
another important success factor. Collective
bargaining agreements and works agreements
form the stable foundation for Porsche's
long-term success, benefiting employees and
shareholders in equal measure.
At Porsche, our focus is on people. That's why
we're sticking to our existing personnel
strategy in an age characterised by enormous
change within the automotive industry and
ever-advancing digital transformation.
Employer attractiveness and encouraging
young talents
105
To promote young professional talents, Porsche
relies on its partnership with relevant univer-
sities and organisations. A good example of
this is "Formula Student Germany", an inter-
national design competition sponsored by the
Association of German Engineers (VDI).
Employees, Society, Sports, Communications
MEMBER OF THE EXECUTIVE BOARD FOR HUMAN RESOURCES ANDREAS HAFFNER PRESENTS THE
SPECIAL "DIGITAL FUTURE" PRIZE FROM PORSCHE
PORSCH
Peche Send2019
Digitale Zukunft
on
hsen Idee
ins
www.Jugend gründer
is the basis for its
successful HR work.
This includes needs-
based training that
focuses on future
requirements, ongoing
skills acquisition and
internal development.
Porsche's long-term
positioning as an
attractive employer
amazo
branden
NGEL
TANA
135
inbeis
SCHE
At Porsche's Leipzig site, the company was
again very heavily involved in the vocational
orientation and promotion of MINT professions
in 2019. In cooperation with the VDI (Associ-
ation of German Engineers) Garage, the Porsche
school workshop in Leipzig Plagwitz offers
schoolchildren the chance to experience tech-
nology and inspires them to train in a technical
profession. At its Leipzig site, Porsche recruits
around 10 per cent of each training year from
participants of the courses in the VDI Garage.
The range of courses offered by the Porsche
pupils' workshop was expanded back in 2018
to include the topics of electromobility and
connected car.
108
In the last two years, Porsche was the main
sponsor of the school entrepreneurship
competition "Jugend gründet". The aim of the
competition is for school pupils and trainees
to gain a feel for entrepreneurial thought and
action in order to use this in future as entre-
preneurs and intrapreneurs. Since 2018, the
national final has taken place in the training
centre in Zuffenhausen. Porsche's special
"Digital Future" prize also enjoyed a successful
launch: the internal Porsche jury awarded first
place to the "Blind Play" business idea received
from six female school pupils under the
team name "InteCreate". A plug-in for popular
video games, their concept enables visually
impaired people to play games on an equal
footing with others thanks to a coordinated
series of unique and easily distinguishable
audio signals.
PORSCHE
Staff development
Strategic competency
The transformation of the automotive industry
poses a raft of new challenges, even for
Porsche. This has led to the introduction of
strategic competency management as a
Strategic competency management
In an effort to ensure a lasting legacy, alumni
events were held during the reporting year
for all former participants on the management
programme from the first and second report-
ing levels. As well as providing a forum for
discussing the latest issues and strategically
relevant topics, these gatherings are an
important platform for engaging in an
exchange and further boosting interdepart-
mental collaboration.
The Porsche International Management
Programme is tailored to the special require-
ments of experienced managers on the second
reporting level. Under the banner of "A distinc-
tive agility trip for Porsche leaders", the focal
points are the systematic development of
leadership competencies, the strengthening of
the required mindset and the expansion of
the methodological repertoire for shaping the
transformation.
Programmes at management level
Porsche is preparing managers for the
challenges of the future with customised
qualification offers and programmes. The
reporting year witnessed the launch of the
Porsche Professional Programme, which helps
new managers from the second reporting
level be more effective in tackling their new
roles and responsibilities. In keeping with
the concept of "Imagine, Deliver and Lead",
participants complete three modules offering
a range of stimuli and tools for the successful
implementation of Strategy 2025 Plus.
In the Porsche development programme,
employees are qualified professionally and
personally for assuming managerial tasks
in the future. The wide-ranging content of
the programme includes digitalisation, innova-
tive strength, internationalisation and lifelong
learning. The Porsche development pro-
gramme was launched in January 2018, with
its current wave featuring around 250
employees from Porsche AG and 25 partici-
pants from the subsidiaries.
Porsche development programme
The new Fit for the Shop Floor qualification
programme was introduced in the reporting
year for first-level operational managers.
This programme features a modular structure
and is supported by an accompanying digital
learning module. Over the course of 12
months, participants systematically complete
10 qualification modules as they expand
their specialist and interdisciplinary skills.
Particular emphasis is placed on employee
management, integrity and Porsche culture.
The basic modules can also be complemented
by additional qualification options. A total of
100 foremen from Production and Logistics
have joined this programme since it was
launched in July 2019, and the company is
already planning to incorporate foremen
from other departments.
Fit for the Shop Floor
International trainee programme
Following the successful completion of the
fourth wave of the trainee programme,
a new trainee group started this 12-month
international project in October 2019.
The reporting year saw Porsche upgrade its
existing range of seminars to include extra
topics and formats, all with the aim of provid-
ing optimum support to employees going
about their day-to-day tasks. Successful col-
laboration in virtual teams, time management
and work organisation were among the key
themes. The company is also increasingly inte-
grating blended learning formats alongside
classic face-to-face sessions. This targeted
expansion will continue in 2020 with the
addition of options including mindfulness and
effective self-management.
training options
Expansion of the range of further
Qualification and interdepartmental exchange
begin on the first day at Porsche, with the
Porsche Warm-Up serving to welcome all new
employees. During the two-day event, fresh
recruits are familiarised with aspects such as
the Porsche strategy as well as the main core
and support processes. They are also informed
about topics such as equal opportunities,
integrity and compliance principles. Porsche
Warm-Up International, which gives new
employees at the international subsidiaries
an in-depth chance to discover Porsche in
Leipzig and Zuffenhausen, also promotes the
establishment of an international network.
In the reporting year, a total of around 2,500
employees participated in the Porsche
Warm-Up - a 25 per cent increase on 2018.
Porsche Warm-Up
As Porsche upgrades its Strategy 2025 to
Strategy 2025 Plus, the focus continues to be
on addressing the challenges of the digital
transformation. In the reporting year, this once
more proved a key influence on the thrust
and work of personnel and management
development. The aim is to build and develop
competencies that are crucial to company
success in all employees and managers in a
structured and sustainable way. The high-
quality and comprehensive range of training
opportunities and individual and target-group-
specific staff development programmes was
again continuously expanded and optimised in
consultation with the Works Council in 2019.
INTERNATIONAL WARM-UP IN LEIPZIG
response from trainees and DHBW students to
date, the company plans to continue the pro-
gramme into 2020 with an expanded scope.
EXPERIENCING TECHNOLOGY IN THE PORSCHE PUPILS' WORKSHOP IN LEIPZIG
2
LEADERSHIP LABS TO DEVELOP COMMON UNDERSTANDING OF LEADERSHIP
In the reporting year, the Porsche Taycan be-
came the company's first all-electric car to
enter series production. This marks the dawn
of a new era - and one requiring intensive
preparation, most notably for the Taycan pro-
duction staff. As a result, the vocational training
unit organised a four-day Taycan training
course as part of the qualification drive for this
first-ever fully electric Porsche. The qualifica-
tion centre is housed in two lightweight
construction halls covering over 2,500 square
metres, with the four-day face-to-face course
providing comprehensive knowledge of the
Taycan itself and the company's electromobility
strategy. Going back to the historical roots
of the company, these interactive workshops
help participants discover how Porsche has
come to enter the field of electromobility.
Topics such as sustainability, charging infra-
structure and charging services are discussed
in an in-depth and open manner. Participants
are also treated to a detailed look at all of the
Taycan's technical features and functions. The
training focuses on establishing a tangible and
emotional link between the participants and
the course content. Some 2,210 employees
have been qualified since training began in
February of the reporting year, including
1,355 front-line workers, 528 trainees and
The pillars of Porsche's personnel policy in-
clude needs-based training that focuses on
future requirements, ongoing skills acquisition
and internal development. Porsche vocational
training provides the basis for this. Learning
contents and training places are adapted
predictively to technological progress and
social development.
Training
In order to incorporate the entire workforce as
multipliers for the topic of leadership and
culture, a team dialogue on culture and values
was also conducted in every corporate unit.
The entire workforce was therefore divided
into its respective teams, enabling employees
to critically assess their own team's approach
to culture and identify the cultural values
that need to be reinforced within the team.
The significant increase in employee numbers
and the digital transformation are crucially
changing how we work together. The initiative
launched back in 2017 to strengthen Porsche's
corporate culture is therefore being continually
expanded. As a result, the Porsche code was
anchored in the relevant HR processes such as
recruiting, HR development and target agree-
ment during the reporting year. Key to this was
the first wave of leadership labs, which saw
1,500 managers - from foremen to members
of the Executive Board - attend 1.5-day work-
shops to develop a common understanding
of leadership based on the Porsche code. The
second wave will target individual leadership
behaviour and is already at the planning stage.
Porsche corporate culture
Another focus in the reporting year was on
addressing candidates for the manufacture of
the Taycan electric sports car at the Zuffen-
hausen site. Communication with applicants is
predominantly based around social media, an
area in which personnel marketing has signifi-
cantly expanded its activities. On Facebook
and Instagram, which are particularly relevant
to younger target groups, employees offer in-
sights into their working lives and reach a wide
audience. Porsche has also recorded a large
increase in Instagram followers through its
cooperation with the influencer Jean Pierre
Kraemer ("JP Performance").
in the AutoVision category "Internal Communi-
cation, Human Resources" in 2019. In addition,
the campaign has received a total of three
honours from the Art Directors Club Germany.
As Porsche's employer branding campaign
shows, behind the exclusive products is
an approachable employer that values factors
such as camaraderie and work-life balance.
While high-quality black and white pictures of
employees convey an authentic impression
of the working environment, central messages
of the Porsche corporate culture - such as
practicality, collegiality and innovation - are
conveyed to the outside world. Not only was
this campaign recognised with the audience
award for "Best Cultural Fit Campaign" at the
Trendence Awards, it also won the Grand Prix
award for Best Film and the OttoCar award
However, the support of young talents begins
even before university. For the last 19 years,
the best high-school leavers of their year in
Baden-Württemberg have been awarded the
Ferry Porsche Prize in the main subjects
of mathematics and physics/technology. In
2019, the coveted award was presented to
220 young people. Six of them additionally
received a one-year scholarship. The scholars
are selected by drawing lots during the
annual award ceremony at the Research and
Development Centre in Weissach.
support programmes from the education fund
such as networking events and further training
possibilities are on the agenda. International
university contacts are also carefully main-
tained and continually developed: examples
include the cooperation with the IT chair at
Babes-Bolyai University in Cluj (Romania).
WITH ITS EMPLOYER BRANDING CAMPAIGN, PORSCHE SHOWS ITS EMPLOYER BRAND TO BE DOWN
TO EARTH AND APPROACHABLE
TROER
The latter also comprises the scholarship
programme for IT students at RWTH Aachen
University, which each year sponsors 15 stu-
dents on Information Technology, Media
Informatics, Software Systems Engineering
and Data Science courses. The Porsche IT
scholarships are awarded through the RWTH
education fund and include a special frame-
work programme in addition to financial
support. Alongside specialist events, general
Porsche is also stepping up its collaboration
with CODE University in Berlin through a num-
ber of shared projects. As a result, CODE Uni-
versity students are currently tackling issues
relating to the topic of "Machine learning using
location-specific data". This format connects
students even more closely with the Porsche
experts and is part of the university campaign.
Cooperation with renowned universities is
being further expanded, with a specific focus
on the topic of digitalisation. This year, Porsche
became a partner of the Business Information
Technology study course at Karlsruhe Institute
of Technology (KIT). The newly established
partner network aims to ensure the close
interaction of theory and practice in a study
setting, with Business Information Technology
students from KIT receiving exclusive insights
into typical tasks and fields of activity pertain-
ing to business IT specialists at Porsche.
an additional 327 interested employees. Given
the high level of demand throughout the
company, a two-day short course has also
been offered since June 2019.
Electromobility and the issue of new car tech-
nologies in general have long formed key
aspects of vocational training, which involves
targeted preparation of trainees in these areas.
As part of the digitalisation drive and the devel-
opment of new learning methods, the com-
pany has teamed up with the vocational school
Wilhelm-Maybach-Schule. In the pilot phase
of this collaboration, first-year trainees study-
ing to become auto mechanics were equipped
with Porsche tablet PCs. Both the teaching at
the school and the transfer of knowledge at
the training centre have been adapted to suit
the various digital learning methods.
At the Zuffenhausen site, the company currently
offers 150 training places in 10 technical and
commercial training professions, as well as
eight degree programmes in cooperation with
the Baden-Württemberg Cooperative State
University (DHBW).
In 2018, the Porsche vocational training unit
teamed up with the Works Council, the youth
and trainee representatives, and Porsche
health management to draft the new "Azubi fit"
health programme for its trainees and DHBW
students. This duly entered into operation
in 2019, aimed at improving health-related
behaviour among young people and motivating
them to adopt a healthy lifestyle. The core
aspects are physical activity, nutrition, mental
fitness and prevention: alongside a fitness
challenge, the programme addresses topics
such as ergonomic work, healthy sleep, careful
handling of personal resources and a healthy
approach to digital media. Specialists are also
ready and waiting to share their expertise.
Given the very open, enthusiastic and grateful
The after-school learning centre project was
also continued. On two mornings of every
week, pupils in years five to 10 at three partner
schools attended technology classes taught
by a dedicated teacher for the first time. Drawn
from two integrated schools and an inter-
mediate secondary school, the youngsters
were provided with curriculum-based teaching
featuring a direct link to Porsche. The teacher
also received subject-specific support from
various trainees and master trainers. A further
focal point is vocational orientation, which
aims to encourage more young people to enter
technical vocational training: the teaching
workshop helps pupils experience the reality of
training in the eight technical occupations in
which Porsche offers traineeships.
people with a disability are also enabled indi-
vidually in cooperation with various vocational
training centres.
The vocational training of severely disabled
candidates has been exemplary. Currently, 22
persons with a disability are completing train-
ing or a dual study programme with Porsche.
If training in the company is not possible on
the grounds of corresponding 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 then deployed to the extent of their
possibilities in the various departments of the
company. Internship placements for young
Since many applicants have no prospect of a
training place according to the general selec-
tion criteria, Porsche relies on an entry qualifi-
cation known as the Year of Support. A number
of 18 young adults completed a Year of Support
in 2019, 14 of whom were able to qualify for
subsequent training at Porsche. Porsche has
also successfully continued the integration year
for refugees. The project featured 11 young
people, of whom almost all were successfully
integrated into the training and job market
in cooperation with handicraft businesses or
have gone on to attend secondary school.
Responses were provided by vocational train-
ing representatives and by employees from the
various departments, who also offered detailed
insights into the world of work after training.
This year's event was also the first at which
attendees were able to receive pointers on
crafting the perfect application, as a dedicated
presentation and four hands-on information
stands provided full details on the application
process plus a valuable range of insider tips.
TO DATE, MORE THAN 2,000 PORSCHE EMPLOYEES HAVE COMPLETED TAYCAN TRAINING
107
Porsche's long-term positioning as an attrac-
tive 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 2019, Porsche again
occupied top positions among students in
relevant employer rankings. The Universum
Student Survey saw Porsche named the most
attractive company in the automotive industry
and the most attractive employer for engineers
in 2019. And in Glassdoor's employer ranking,
which is based on employee ratings, Porsche
took top spot among leading employers
for the first time. Porsche's strong employer
attractiveness is also demonstrated by the
rising number of applicants: the Porsche Group
received more than 190,000 applications
in 2019.
In July, Porsche held an InfoNight event at its
training centre with the aim of encouraging
young people to undertake training or dual study
at the company. The event also marked the start
of applications for the training and study places
to be filled in 2020. Attendees were given the
chance to experience the typical feel of training
at Porsche while having all their questions an-
swered in relation to training and dual study.
The percentage of female trainees remained
high in 2019 at 29 per cent. In the dual study
programmes, the proportion of female
students even reached 44 per cent. In order to
obtain more applications from suitable female
candidates in the next few years, Girls' Day
was once again held at the training centre
in 2019.
In 2019, 21 technical trainees, 16 commercial
trainees and 29 DHBW students gathered
professional experience abroad. The postings
lasted from two weeks to four months. There
were five rotation assignments in technical
vocational training between Porsche and
Bentley, plus international assignments at
Porsche Centre Great Britain and at Nardò
Technical Centre. Once again, one trainee from
the subsidiary Porsche Cars Australia was
taken on at the Porsche AG training centre in
order to gain insight into the German training
system. A further 21 DHBW students under-
took their international practical placement
on-site at Bugatti, Bentley and Lamborghini.
Porsche also expanded its collaboration with
VW Slovakia and saw the brands engage in
their first-ever exchange programme: this pilot
gave DHBW students from Bratislava the
chance to complete their practical phase at
the Zuffenhausen plant.
The internationalisation of vocational training
also continued apace. This represents an
important means of further qualifying young,
highly motivated talents undergoing vocational
training, thereby preparing them for the
workplace of the future. The foreign postings
encourage intercultural exchange, aid person-
ality development and increase participants'
flexibility and mobility.
106
Employees, Society, Sports, Communications
As part of its CSR sponsoring activities in 2019,
Porsche assisted the Code+Design initiative
aimed at encouraging young people to enter
digital technologies and professions. Its code
camps are conducted across Germany for
50 to 150 young people at a time with the
goal of raising interest in the field of program-
ming. In addition to the hosting of a code
camp in Stuttgart, the reporting year also saw
the company support the 19th Stuttgart
International Symposium on Automotive and
Engine Technology: as one of the largest and
most important specialist conferences for
vehicle and engine technology in Europe, it is
attended by around 1,000 experts each year.
Part of the future-oriented training comprises
the promise to take on all graduates of the
vocational training and the dual study pro-
gramme as permanent employees. Thus, in
the reporting year, 190 trainees and DHBW
students started a permanent job after
successfully completing their studies.
A number of 106 young people began techni-
cal training in 2019, including 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 inte-
rior designers, industrial mechanics for auto-
mobile construction, and electronics engineers
for operating technology. The number of dual
study places remained unchanged at 34.
As a response to ever-increasing digitalisation
across all areas of automobile construction and
electromobility, around 70 per cent of places
are now on study courses with strong links to
IT and electrical engineering. In addition to
the existing focus on information technology
and automotive information technology, the
portfolio of IT-related study courses has been
expanded to include the aspects of mobile
informatics and IT security. Nine industrial
salespersons also started their training in
2019. In the commercial field, the trainees are
prepared for the new working world and learn
digitised applications from the very first day.
Another highlight was the filming of a series of
videos by influencer Jean Pierre Kraemer ("JP
Performance") at the training centre. These
videos were uploaded to YouTube in early April
and have since racked up over one million views,
further boosting the appeal of vocational train-
ing at Porsche. This positive impact was
also reflected by the huge spike in subscribers
to our HR marketing channel on Instagram
(@porschecareers) and by the applicant statis-
tics drawn from this year's recruitment activities.
CSR sponsoring
Established in 2018, the Ferry Porsche Founda-
tion also focuses on social responsibility in a
wide variety of ways. Its activities are centred
on assisting children and young people, espe-
cially in and around the company's factory sites.
to improve their opportunities and prospects.
The programme not only includes the "Porsche
Dream Up" scholarship programme supporting
bright young talents in the fields of art and
sport, but also the "Dream Playground" drive to
establish playing facilities inside buildings.
This latter campaign, which spurred the con-
struction of two indoor playgrounds at Korean
primary schools in 2019, is a response to
the high levels of fine dust pollution that pre-
vent outdoor play in many places throughout
the country.
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.
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
The Porsche women's network was estab-
lished in the reporting year and met with an
enthusiastic response from the workforce.
Some 600 women use this platform to provide
mutual support and boost the female per-
spective within all processes at the company.
This new network format is overseen by
Director of Research and Development Michael
Steiner. Another programme in this area is
the Women Business Lunch, which facilitates
networking among first- and second-level
female managers.
A "sensitisation guided tour" was offered to-
gether with the Porsche Museum for managers
and employees from all areas of the company.
The tour gave an impression of life with a
physical disability, for example by using a
wheelchair, blindfolds or headphones. The ac-
tive change of perspective resulting from this
encourages sensitivity and understanding
towards colleagues with disabilities. This en-
ables inclusion to be promoted in the long term.
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 increased
the percentage of women in the company to
15.5 per cent. During the same period, the
number of women in managerial positions has
more than tripled. The percentage of women
in management is now around 11 per cent.
A number of training modules offer an in-depth
look at opportunities, challenges and courses
of action when addressing the topic of diversity,
encompassing management and employees
alike. The specially developed "perspectives
check", a digital learning tool on the Porsche
learning platform, helps managers identify and
expand the range of perspectives within their
team while deploying these to best effect.
An employee game has also been developed:
known as the "team check", it promotes equal
opportunities and diversity within teams by
encouraging employees to reflect on individual
attitudes and behaviour in relation to these
topics. Equal opportunities and diversity
are also featured in the Porsche onboarding
process as part of the "Warm-Up" intro-
ductory event.
True to the concept of "Everyone is individual.
As a group, we are diverse. Together, we are
successful", the company kicked off the 3rd
Porsche Diversity Days event in May. In an
interactive exhibition entitled "Perspektiven-
vielfalt@Porsche", employees were able to
experience the added value of diversity and
the importance of different perspectives - not
least as a key driver of commercial success.
The exhibition also raised awareness of uncon-
scious prejudice. In the presence of Annette
Widmann-Mauz (Minister of State in the
Federal Chancellery and Federal Government
Commissioner for Migration, Refugees and
Integration), Chairman of the Executive Board
Oliver Blume, Member of the Executive Board
for Human Resources Andreas Haffner and
Chairman of the Works Council Werner
Weresch signed the diversity charter and thus
committed Porsche to establishing a working
environment free from prejudice. This event
was only the first in a series that toured various
Porsche sites from May to September 2019
and provided ample opportunities for engaging
in dialogue.
The Porsche workforce is characterised by its
diversity: employees from more than 80 nations
and five generations, with the most diverse
individual skills, ensure that Porsche is so suc-
cessful 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 pre-
scribed 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.
Equal opportunities and diversity
112
Employees, Society, Sports, Communications
26,506
"KLASSIK AIRLEBEN" OPEN-AIR CONCERT
+10%
28,764
2018
31,690
2019 ✓
In increasing the percentage of women, the
promotion of young talent also plays an import-
ant role for Porsche. Thus, in 2019, 31 per
cent of trainees and DHBW students were
female, and the proportion of women among
the interns and thesis applicants was also
27 per cent. In order to win female talented
professionals for Porsche, the existing cooper-
ation with Femtec, an international career
platform for women in IT, engineering and nat-
ural sciences, was successfully enhanced. In
the reporting year, various excursions provided
insights into the working world at Porsche.
At "Stuttgart Culture Day", for example, attend-
ees were able to enjoy presentations on the
topics of corporate culture and construction
management before embarking on a tour of
the museum and plant. On top of this, the
"Femtec Innovation Workshop" gave 35 female
students enrolled on MINT study courses the
chance to optimise development processes in
car body production and present their results
to an audience drawn from the department
and the HR team.
At trade fairs and during formats specially for
women, the company regularly gives infor-
mation about entry opportunities. In 2019,
Porsche attended events such as "women&-
work", Europe's leading trade fair for women in
business, the "Future Day for Female Students"
at RWTH Aachen University and the "Ladies
Lounge" at Formula Student Germany. Porsche
also took part in "PANDA Tech & <Software />",
a network and recruiting event for women
who are already experienced managers or as-
pire to a management position. The company
also made its debut at STICKS & STONES, the
largest LGBT careers fair in Europe. In addition
to outlining the various ways to join its team,
Porsche also demonstrated how it implements
and supports diversity within its ranks.
proportion of women in management since 2012
Porsche training and recruitment centres for young
people in Manila, Cape Town and Puebla
3
markets served by Porsche worldwide
> 120
+100%
different degrees and qualifications
> 500
Compared to previous year
proportion of women in training programmes
of staff includes Generations Y and Z
60%
different countries work at Porsche
О
>80
Porsche AG
in figures
Diversity 2019
31%
5
Total workforce in Germany
Ludwigsburg
3,439
Integrity is also a fixed component of the ex-
isting personnel development programmes
and was further expanded in 2019. As a result,
dialogue events relating to Porsche's values
and culture are also conducted in the corpor-
ate units to sensitise employees to matters
of integrity. In addition, classroom-based
sessions are used to inform disciplinary man-
agers of the crucial importance of this topic.
These individuals must serve as role models,
generate awareness among staff and create a
working environment in which each employee
can speak their mind openly and honestly.
In order to inform the workforce of the high
importance of integrity and to ensure ongoing
sensitisation to this topic, Porsche makes
use of a well-established catalogue of internal
communication measures that is constantly
being upgraded. A key tool in assessing behav-
ioural integrity at Porsche is the annual
employee survey - the aforementioned mood
barometer. In the event that any notable find-
ings raise doubts in relation to behavioural
integrity, the causes are identified accordingly.
If necessary, corresponding measures are then
taken with the involvement of HR and the
respective manager.
Integrity means taking responsible and up-
standing actions in accordance with ethical
principles. It represents the prerequisite
for honest and respectful cooperation, which
constitutes the basis of the Porsche culture
and is a fixed component of our strategic
guidelines. Acting with integrity is also indis-
pensable in retail, which is why it was included
in the Porsche service standards as the high-
est value. The crucial relevance of the issue
of integrity is further demonstrated by the fact
that it has been successfully implemented
in the responsible committees and steering
committees. Regular reporting to the Execu-
tive Board was also established in 2019.
Integrity
110
Employees, Society, Sports, Communications
INTERNATIONAL TRAINEE PROGRAMME
109
In 2019, all employees of Porsche AG and its
subsidiaries were again asked to give an
assessment of their current work situation
using a mood barometer. More than 83 per
cent of Porsche Group employees voluntarily
participated in the online survey. The mood
index at Porsche AG has improved by a further
1.5 per cent on top of what was already an
extremely positive result for 2018. It is
particularly pleasing to note that 93 per cent
of employees view Porsche as a very attractive
employer. After the questionnaires have been
evaluated, the results in the respective
corporate unit are discussed in detail. Man-
agers and employees identify potential for im-
provement and jointly define specific measures
in order to optimise processes or working
conditions, for example.
Porsche mood barometer
to long term.
company in the medium
required across the entire
cations set to be required across the entire
company in the medium to long term. In this
method, interdisciplinary teams record current
tasks and skills before using a fit-gap analysis
with future tasks so as to pinpoint the neces-
sary skills that must be acquired. Any identi-
fied skill gaps can thus be addressed at an
early stage through targeted retraining and
further training, forward-looking recruitment
and new priorities in ongoing training. This
method was introduced throughout research
and development in 2018 before being trans-
ferred to regular operations a year later. Over
300 employees have already participated in
specific qualification programmes on topics
such as electrification and mechatronics.
Porsche extended the roll-out to three add-
itional departments (Production, Procurement,
and Finance & IT) in the reporting year and
aims to compile its first company-wide skills
atlas by the end of 2020.
means of systematically identifying the qualifi- using this method to
systematically identify the
qualifications set to be
management - Porsche is
EMPLOYEES
Integrity management was expanded in almost
all areas at Porsche during 2019. One typical
example is the recruiting process: not only are
aspects of integrity discussed during inter-
views with applicants, new employees are also
sensitised to the topic in the course of the in-
troductory events. On top of this, the company
has also set about establishing a multiplier
network that facilitates the exchange of exist-
ing integrity initiatives and thus helps identify
synergies and interfaces.
Work and family
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,
childcare places are offered in nurseries in
cooperation with local partners. In addition,
children of employees are supervised at the
sites around Stuttgart throughout the summer
holidays including a shuttle service. A
"Code Camp" was offered for the second time
in 2019, together with the "Code + Design
Initiative". Here, young future programmers
can expand their knowledge in exciting pro-
jects. With the exception of the Christmas
break, the children are also supervised during
the remaining school holidays.
Through its family service, Porsche offers free,
individualised and comprehensive advice
and support for all family life situations. This
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.
Bietigheim
1,165
586
6,995
Weissach
Sachsenheim
475
Schwarzenberg
Other German
locations 629
Leipzig
4,402
111
at locations in Germany
Employees ✓
the company.
cooperation is the basis
of the Porsche culture
and is therefore a fixed
component of the
strategic guidelines of
Honest and respectful
in the process.
Porsche also provides flexible working options
with respect to place of work and working
hours. Mobile working, life-phase-oriented
flexible working hours and a voluntary personal
sabbatical are just a few examples of this.
A collaboration with DHL also saw package
delivery stations enter operation in 2019 at
the Weissach and Zuffenhausen sites, making
it much easier for employees to collect or
drop off their parcels and save valuable time
This commitment to reconciling career and
family was again honoured in the reporting
year by the magazine ELTERN: following
a survey conducted across Germany, Porsche
was honoured as one of the "Best companies
for families".
Zuffenhausen
13,999
От
2017
young women and men in support year
and integration year
Asse für Charity.
"Aces for Charity" sees
Porsche donate 100 euros
for every ace served during
the week-long tournament,
with the world's top players
racking up a remarkable
212 in 2019.
"ACES FOR CHARITY" CHARITY TOURNAMENT AT THE LEIPZIGER RASEN CUP
The second institution, the Arbeiter-
Samariter-Bund Regionalverband Leipzig, is a
special volunteer ambulance service which
enables terminally ill patients to fulfil their
last wish - such as a trip to the seaside or the
stadium of their favourite football team.
Funds from the 2019 event were split equally
and given to two regional institutions. The
first of these, "Mitteldeutsche Kinderkrebs-
forschung", supports medical research
projects tackling cancer in children and young
people. This foundation has helped establish
childhood cancer centres in Dresden, Leipzig,
Halle, Magdeburg and Jena, each providing
comprehensive top-quality care to young
patients.
new name: the "Leipziger Rasen Cup". The
event held at "soccerworld" at the Alte Messe
welcomed 28 company teams from outfits
such as Dell Technologies, Sachsenmilch and
the University Hospital of Leipzig. First place
went to Debeka Sachsen AG. With each team
paying 500 euros to enter, this 14th edition
of the tournament raised some 14,000 euros
in donations.
Porsche Leipzig benefit football tournament
kicked off on 8 September 2019 under a
Leipziger Rasen Cup
Around 3,200 employees
took part in the six-hour
charity run. Porsche donated
five euros per completed
lap and rounded up the final
total to 200,000 euros.
PORSCH
German TV star and Porsche brand am-
bassador Richy Müller joined actress
Melanie Marschke for the all-important
tombola draw. One of the initiatives supported
by this charity campaign in 2019 was the
"Grünau moves!" project at Heizhaus Leipzig
youth centre. Offering free dance, sports
and nutrition courses, it encourages school-
age children to be more active and adopt a
healthier lifestyle.
Star prize in tombola at Leipzig Opera Ball
Porsche has served as a presenter at the
Leipzig Opera Ball since 2013. When this key
social event celebrated its 25th anniversary
on 26 October 2019, the company maintained
its tradition of providing a sports car as the
star prize for the tombola. Last year, it was
a Macan and thus the second time a car
"made in Leipzig". The Leipzig Opera Ball is
focused on supporting the greater good, with
all proceeds being donated to associations
in the Leipzig region that work with children
and young people. The funds from the
2019 tombola alone reached 85,700 euros:
Porsche then generously rounded up this
amount to 100,000 euros before it was
gratefully received by the local children's
foundation "Leipzig hilft Kindern", which is led
by Dr Claudia Nerius. "Every euro benefits
children and young people who need our help.
Charitable organisations are welcome to
submit their projects to our foundation all year
round," said Nerius.
PORSCHE SIX-HOUR CHARITY RUN
PORSCHE
At the fifth edition of the six-hour run
on 14 September 2019, around 3,200
Porsche AG employees completed thousands
of laps of the 911-metre course at the main
plant in Zuffenhausen. Porsche donated five
euros per lap and generously rounded up
the final total to 200,000 euros. The sports
car manufacturer organises this charity relay
run for the benefit of the Ferry Porsche
Foundation. Since its inception in 2015, the
event has already raised 935,000 euros for
good causes (2018: 195,000 euros, 2017:
185,000 euros, 2016: 180,000 euros,
2015: 175,000 euros).
Charity run in Zuffenhausen
Porsche works in close cooperation with
universities in a number of fields, offering
targeted support for academic training
through the funding of foundation chairs.
These efforts led to the establishment of the
"Dr. Ing. h.c. F. Porsche AG Chair of Strategic
Management and Digital Entrepreneurship" at
the HHL Leipzig Graduate School of Manage-
ment in July 2013. At Esslingen University
of Applied Sciences, the company supports
teaching, research and continuing academic
development in the field of modularisation
in vehicle development.
LSV
bw
Funding of foundation chairs
PORSCHE
TENNIS GRAND PRIX
11
With the CSR campaign "Porsche Do Dream",
Porsche Korea aims to open doors for disad-
vantaged children and young people so as
The second project focuses on reducing plastic
waste, particularly in the deeper regions of the
oceans where experts estimate that around
70 per cent of such waste is to be found. Low
temperatures and a lack of UV light in these
regions mean that the waste is broken down
extremely slowly, resulting in serious adverse
effects on the health of people and animals.
Porsche's donation supports six diving spots
for the targeted removal of waste, helping to
eliminate an estimated 250 to 300 kilograms
of plastic. In addition, the data collected in
the process is vital to ongoing research.
the project and stand to gain at every step along
the way, from the planting and care of trees
through to the monitoring of measures.
The tree-planting project addresses the poten-
tial measures that individuals can take to
minimise their negative impact on the world.
Local communities are closely involved in
Porsche also takes action on an international
level, as shown by the Dealer CSR Fund
launched by Porsche China in 2019. This fund
is intended to support local projects across
China that are submitted by Porsche dealers
and implemented in collaboration with char-
itable organisations. Beneficiaries in 2019
included the "Million Tree Project" and the
"Deep-sea Waste Monitoring and Cleaning
Programme".
29
118
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
Employees, Society, Sports, Communications
ACES FOR CHARITY
117
"Aces for Charity" sees Porsche donate
100 euros for every ace served during the
week-long tournament. After the world's
top players sent down some 212 aces during
the 2019 event, Porsche generously rounded
up the final sum to 30,000 euros. Andreas
Haffner, Member of the Executive Board for
Human Resources at Porsche AG, visited
centre court on finals day to hand out the
cheques. Both partners were represented
by well-known charity ambassadors at the
Porsche Arena, with former Germany player
Kevin Kuranyi appearing on behalf of Agapedia
and three-time wrestling world champion
Frank Stäbler for LSV BW.
At the Porsche Tennis Grand Prix, the company
serves up top-class tennis while also raising
money for a range of good causes through its
long-established "Aces for Charity" campaign.
The funds from the 2019 edition of the
tournament in late April were donated to the
Agapedia Foundation, which was created by
former footballer Jürgen Klinsmann for the
benefit of children in need, and the Landes-
sportverband Baden-Württemberg (LSV BW)
sports association for its Integration through
Sport project.
Porsc
Aces for Charity
PREMIER
WTA
TURKI
AIRLIN
Since 2011, the company has promoted the
Porsche Junior social project aimed at im-
proving young people's opportunities on the
job market by helping them acquire practical
experience through pre-vocational training.
In 2019, Porsche also lent its support to the
Joblinge programme that provided training
places to around 700 disadvantaged young
people from the Stuttgart region.
International
Donations
the Supervisory Board, Executive Board
and management
Targets for the percentage of women in
114
Employees, Society, Sports, Communications
113
immeasurable criteria that are still relevant
AND MANY MORE
HOBBIES
VALUES
ABILITY
EXPERIENCE
PERSONALITY
KNOWLEDGE
ATTITUDE
EDUCATION
HABITS
Youth and training support
generations within the company
As part of the implementation of the law on
the equal participation of women and men
in management positions in the private econ-
omy, the following target figures for the per-
centage of women in the Supervisory Board,
Executive Board and upper management levels
by 31 December 2021 have been defined for
Porsche AG: given the long-term commit-
ments of its members, the Porsche Supervisory
Board has confirmed the status quo of 10
per cent as a target figure. 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 (zero per cent). 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 be-
neath the Executive Board, the target percent-
age of women set by Porsche AG is 15 per
cent by 31 December 2021.
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 levels
beneath the Executive
Board, the target
percentage of women
set by Porsche AG
is 15 per cent by
SEXUAL ORIENTATION
Occupational health and safety
31 December 2021.
For Porsche, economic success and social
responsibility are inextricably linked. As such,
the company makes social responsibility
a priority most notably at its various sites.
Through its donations, CSR sponsoring and
cultural sponsoring activities, the Porsche
Group supported over 75 individual projects
in a wide range of areas during 2019. Further
donations were also made to the Ferry
Porsche Foundation.
116
115
A GLIMPSE OF PORSCHE TRAINING
In all that the Porsche Gastronomy does, it
never takes the eyes off its core role: serving
up a rich variety of healthy hot meals to
Porsche employees across as many as three
shifts every day - and providing snacks at all
company sites. On top of this, Porsche
Gastronomy once again ensured high-quality
catering for guests and customers at a range
of events in 2019 including the "Car Summit"
at the Porsche Museum, the opening of the
Taycan factory in Zuffenhausen, the "Night of
Champions" at the Development Centre and
the family day in Leipzig.
As our hard-working and successful employees
deserve an outstanding range of catering
options, Porsche Gastronomy represents an
important element of the corporate culture.
In the reporting year, it underwent further ex-
pansion to include an integrated sustainability
concept encompassing the aspects of meal
planning, food purchasing and sustainable
packaging solutions. Single-use plastics have
also been eliminated and the amount of energy
used on catering has been reduced. Success-
ful progress was recorded in all areas during
2019, with Porsche becoming the first
major catering service in Germany to only use
cleaning agents that are 100 per cent bio-
degradable. This move lessens the impact on
the environment and significantly reduces the
potential hazards for employees when handling
cleaning agents. The economic deployment of
cleaning agents also helps conserve resources.
Porsche Gastronomy
Health management
takes a targeted ap-
proach to fostering
Porsche's most import-
ant resource: motivated
and high-performing
employees.
Employees, Society, Sports, Communications
DANIEL MAUSS, HEAD OF HEALTH MANAGEMENT, AND BRAND AMBASSADOR JULIA GÖRGES FIRE
THE OFFICIAL STARTER'S GUN FOR THE PORSCHE CHECK-UP FOR ALL
The most important resource of the company
is a motivated and effective workforce. All
health-related programmes fall under the
remit of health management, including aspects
such as statutory occupational safety, in-
house emergency services, physiotherapy and
occupational health promotion. Health man-
agement offers a variety of options to promote
the long-term health of employees while they
develop, produce and sell exclusive sports cars
well into the future.
promotion therefore include such aspects
as nutrition, physical activity and mental
strategies.
For example, employees may arrange to have
a thorough medical check-up and obtain
medical advice on any health issues. This
health check is carried out by doctors qualified
in preventive medicine. It is voluntary and
takes place during working hours. In this way,
Porsche once again demonstrates how ser-
iously it takes the health of its workforce while
also supporting a key aspect of employee
health prevention. If necessary, physiother-
apists also advise employees directly at the
workplace. Their focus is on prevention, aiming
to eliminate ergonomically unsuitable behav-
ioural patterns at an early stage and stop
health problems even occurring in the first
place. Porsche's health management pursues
a holistic approach. Courses on health
SOCIETY
In times of demographic change and a rapidly
evolving working environment, it is more
important than ever to focus on the health
of the workforce. Dr Daniel Mauss, Head
of Health Management at Porsche AG, has
developed an early warning system intended
to prevent chronic illnesses caused by
excessive psychosocial stress. Named the
"Allostatic Load Index", it uses a mere five
variables to determine an indicator value
for stress-related health problems. This prac-
tical index was awarded the 2019 Innovation
Prize by the VDBW association for company
doctors in Germany.
Water
Protection of employee health takes top
priority for Porsche. An organised and struc-
tured system for occupational health and
safety guarantees a targeted and uniform
approach and supports the implementation
of legal provisions. This system helps to
prevent accidents at work and occupational
illnesses as far as possible. The central
processes of occupational safety are stand-
ardised and regulated by a Group guideline
that applies to all Porsche employees.
Occupational safety is an essential element
of the compliance management system. It is
the managers' responsibility that employees
know and comply with the provisions of the
guideline. Specialists in occupational safety
and company physicians are available in an
advisory capacity with regard to occupational
safety. All staff members are represented
through the legally defined representatives in
committees in accordance with the Occupa-
tional Safety Act. Porsche employs qualified
safety engineers and occupational health
professionals who concentrate on preventive
measures for accident and health protection.
The design of workstations, machines and
equipment is oriented towards the applicable
high safety and ergonomic requirements.
Training measures for employees and
managers serve to sensitise the entire organ-
isation, thus promoting constant improve-
ments in occupational safety while prevent-
ing accidents.
The Cayenne Turbo S
E-Hybrid and the
Cayenne Turbo S
E-Hybrid Coupé are the
new flagship cars in the
model series. The drive
combines with a variety
of innovative chassis
systems, most featured
as standard, to enable a
perfect blend of sports
car agility, long-distance
comfort and off-road
capability.
MACAN TURBO
Porsche Taycan: sustainably redesigned
sports car
Porsche presented its first all-electric sports
car - the Taycan - in September 2019, thus
marking the start of a new era for the company
and the continued expansion of its offering in
terms of electromobility. This four-door sports
saloon is a unique package, combining typical
Porsche performance and connectivity with
everyday usability. The first models in the new
series are the Taycan Turbo S and Taycan
Turbo. They are at the cutting edge of Porsche
E-Performance and are among the most
powerful production models currently offered
by the sports car manufacturer. The Taycan 4S
was subsequently introduced as the third
version of this sports saloon in mid October
2019. In late 2020, the company plans
to unveil the Taycan Cross Turismo as the
first derivative.
The flagship Turbo S version of the Taycan
generates up to 560 kW (761 PS) overboost
power in combination with Launch Control,
and the Taycan Turbo up to 500 kW (680 PS).
The Taycan Turbo S accelerates from zero
to 100 km/h in 2.8 seconds, while the Taycan
Turbo completes this sprint in 3.2 seconds.
In terms of range, the Turbo S can cover up to
412 kilometres and the Turbo as much as
450 kilometres (according to WLTP in each
case). The top speed of both all-wheel drive
models is 260 km/h.
second gear features a long gear ratio to
ensure high efficiency and equally high power
reserves - even at very high speeds.
particular advantage for Taycan drivers on
the road: in just over five minutes, the battery
can be recharged using direct current (DC)
from the high-power charging network for a
range of up to 100 kilometres (according to
WLTP). The charging time for 5 to 80 per cent
SoC (state of charge) is 22.5 minutes for
charging under ideal conditions and the maxi-
mum charging power (peak) is up to 270 kW.
The overall capacity of the Performance
Battery Plus is 93.4 kWh. Taycan drivers can
comfortably charge their cars with up to
11 kW of alternating current (AC) at home.
With its clean, puristic design, the Taycan
signals the beginning of a new era. And with
a Cd value from 0.22, the aerodynamically
optimised basic shape makes a decisive con-
tribution to low energy consumption and
thus long range.
Porsche uses a centrally networked control
system for the Taycan chassis. Integrated
Porsche 4D Chassis Control analyses and syn-
chronises all chassis systems in real time. The
innovative chassis systems include adaptive
air suspension with three-chamber technology
featuring Porsche Active Suspension Manage-
ment (PASM) electronic damper control and
the Porsche Dynamic Chassis Control Sport
(PDCC Sport) electromechanical roll stabilisa-
tion system featuring Porsche Torque Vectoring
Plus (PTV Plus). The all-wheel drive control
with two electric motors and the recuperation
system are unique. At up to 265 kW, the
potential recuperation power is significantly
higher than that of competitors. Driving tests
have shown that around 90 per cent of
everyday braking is performed by the electric
motors alone without the hydraulic wheel
brakes being activated.
The role of the Taycan as a technology leader is
reflected in almost every detail, even including
the interior. All user interfaces have been
completely redesigned for the Taycan. The
number of traditional hardware controls, such
as switches and buttons, has been greatly
reduced. Instead, control is intelligent and
intuitive via touch operation or the voice
control function that responds to the com-
mand "Hey Porsche". With the Taycan, Porsche
offers an entirely leather-free interior for
the first time. Interiors made from innovative
recycled materials underscore the sustainable
concept of this electric sports car. "Foot
garages"-recesses in the battery in the rear
footwell - ensure sitting comfort in the
rear and enable the low vehicle height typical
of sports cars.
All three Taycan models feature two excep-
tionally efficient electric motors, one on the
front axle and one on the rear axle, thus
making the cars all-wheel drive. Both the range
and the continuous power of the drive benefit
from the high efficiency of the permanently
excited synchronous machines. The gearbox
and pulse-controlled inverter are each com-
bined into a compact drive module. The mod-
ules have the highest power density (kW per
litre of package space) of all electric power
trains currently on the market. A special feature
of the electric motors is the hairpin winding
of the stator coils. This technology makes it
possible to incorporate more copper in the sta-
tor, increasing power output and torque while
maintaining the same component volume.
The two-speed gearbox installed on the rear
axle is an innovation developed by Porsche.
First gear gives the Taycan even more
acceleration from a standing start, while
The Porsche Taycan links
the brand's heritage to
its future. This four-door
sports saloon is a unique
package, combining
performance and con-
nectivity with everyday
usability.
The new Macan Turbo comes with the Porsche
Surface Coated Brake (PSCB) as standard to
match the excellent driving dynamics. Optional
height-adjustable air suspension with opti-
mised rolling pistons and new shock absorber
hydraulics, Porsche Torque Vectoring Plus
(PTV Plus) and the Porsche Ceramic Compos-
ite Brake (PCCB) are available for a further in-
crease in dynamics. The 20-inch Macan Turbo
wheels come as standard.
The Taycan 4S is available with two battery
sizes: the Performance Battery generates up
to 390 kW (530 PS), while the Performance
Battery Plus delivers up to 420 kW (571 PS).
A single-deck Performance Battery with a
total capacity of 79.2 kWh is standard, while
the two-deck Performance Battery Plus (total
capacity 93.4 kWh) - familiar from the Taycan
Turbo S and Taycan Turbo - is available as an
option. Power output and range vary accord-
ingly. With the Performance Battery, the
Taycan 4S generates up to 390 kW (530 PS)
overboost power; equipped with the Perform-
ance Battery Plus, it delivers up to 420 kW
(571 PS). Both variants of the Taycan 4S
accelerate from zero to 100 km/h in 4.0 sec-
onds. Top speed is also 250 km/h in both
cases. The range is up to 407 kilometres with
the Performance Battery, extending as high
as 463 kilometres with the Performance
Battery Plus (in accordance with WLTP in each
case). Maximum charging power (peak) is
225 kW (Performance Battery) and 270 kW
(Performance Battery Plus).
The Taycan is the first production car with
a system voltage of 800 volts instead of the
usual 400 volts for electric models. This is a
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Porsche Macan Turbo: flagship model with
higher output and lower consumption
The Porsche Macan Turbo has taken over the
top spot among compact SUV sports cars.
The new six-cylinder biturbo engine -
which Porsche already uses for the Cayenne
and Panamera models - delivers 324 kW
(440 PS), equating to 10 per cent more power
output than its predecessor with 20 per cent
less displacement. With the optional Sport
Chrono package, the car can go from zero to
100 km/h in 4.3 seconds - three-10ths
faster than before. Top speed is 270 km/h -
an increase of 4 km/h.
The new element of the overall package are
the ultra-high-performance (UHP) tyres
which are designed for the 718 Spyder and
which make the 718 Cayman GT4 fly on the
Nürburgring Nordschleife, setting new records:
its lap time on this legendary 20.6-kilometre
racetrack was over 10 seconds faster than
its predecessor.
The profile of the different driving modes
essentially follows the same philosophy as in
other Porsche model series. This is supple-
mented by special settings which enable opti-
mum use of the purely electric drive. Four
driving modes are available: "Range", "Normal",
"Sport" and "Sport Plus". In addition, individual
systems can be configured as required in
"Individual" mode.
911 CARRERA COUPÉ
S.GO 4107
Entry-level models: Porsche 911 Carrera
Coupé and 911 Carrera Cabriolet
Porsche expanded its eighth-generation range
with the 911 Carrera at the end of July 2019.
This new sports car, which was launched as a
coupé and cabriolet, generates 283 kW
(385 PS) from its 3.0-litre six-cylinder boxer
engine with biturbo charging. The Carrera
is the entry-level 911 model and delivers
11 kW (15 PS) more than its predecessor.
As with the 911 Carrera S, the engine, chassis
and brakes are designed for exclusive sporti-
ness. The 3.0-litre six-cylinder boxer engine of
the 911 Carrera generates power largely
through the smaller wheel diameters of the
turbines and compressors that feature in
the new turbochargers. Power transmission is
handled by the new eight-speed dual-clutch
gearbox (PDK). This enables the 911 Carrera
Coupé to accelerate from zero to 100 km/h in
4.2 seconds, with a top speed of 293 km/h.
The optional Sport Chrono package shaves
a further 0.2 seconds off the sprint. Combined
fuel consumption (NEDC-correlated) of the
Coupé is 9.0 1/100 km, while the Cabriolet
records 9.2 1/100 km. The driving dynamics
set-up includes 235/40 ZR tyres on 19-inch
alloy wheels on the front axle. The rear axle
features 20-inch wheels with 295/35 ZR
tyres. Deceleration is provided on both axles
by 330-millimetre brake discs with black
monobloc four-piston fixed callipers.
911 SPEEDSTER
133
Research and development
134
In at the top: Porsche Cayenne Turbo S
E-Hybrid and Turbo S E-Hybrid Coupé
In late August 2019, the Cayenne Turbo S
E-Hybrid and the Turbo S E-Hybrid Coupé
were introduced as the new top models in
the Cayenne series. They draw their system
output of 500 kW (680 PS) from the intelli-
gent interaction of a four-litre V8 engine
(404 kW/550 PS) and an electric motor inte-
grated into the eight-speed Tiptronic S gear-
box (100 kW/136 PS). The maximum system
torque of 900 Nm is already available just
above the idling speed. Both models acceler-
ate from zero to 100 km/h in 3.8 seconds and
reach a top speed of 295 km/h. This excep-
tional performance is matched by a high level
of efficiency: the Cayenne Turbo S E-Hybrid
and Turbo S E-Hybrid Coupé can drive for up
to 40 kilometres with zero emissions.
The average NEDC consumption is 3.9 to
3.7 l/100 km (fuel) and 19.6 to 18.7 kWh/
100 km (electric).
Like all Porsche plug-in hybrids, the new top-
of-the-range model in the Cayenne family
is also one of the sportiest cars in the premium
segment. In the Cayenne Turbo S E-Hybrid
models, the electric motor is located between
the V8 engine and the eight-speed Tiptronic S
gearbox. The two motors are interconnected
via a separating clutch inside the hybrid
module. In "E-Power" driving mode, the electric
motor can single-handedly propel the car up
to a maximum speed of 135 km/h. It can also
be used in the other modes for an additional
power boost. These modes can be selected via
the standard Sport Chrono package ("Hybrid",
"Auto", "Sport" and "Sport Plus"). Porsche has
taken this boost strategy from the 918 Spyder
supercar.
The lithium-ion battery is installed underneath
the load compartment floor and has a cap-
acity of 14.1 kWh. The high-voltage battery
can be fully charged within 2.4 hours via the
standard 7.2 kW on-board AC charger when
using a 400-volt connection with a 16-amp
fuse. Charging takes six hours from a conven-
tional domestic socket with a rating of
230 volts and 10 amps.
CAYENNE TURBO S E-HYBRID
The 2.9-litre engine delivers 29 kW (40 PS)
more than the 3.6-litre six-cylinder turbo in
its predecessor plus maximum torque
of 550 Nm between 1,800 and 5,600 rpm.
Power transmission is provided by the
seven-speed dual-clutch gearbox (PDK) and
Porsche Traction Management (PTM)
all-wheel drive. NEDC consumption stands
at 9.8 1/100 km.
135
To mark the 15th anniversary of the customer
and Clubsport series "Porsche Sports Cup"
Germany, Porsche offered a special limited-
edition model featuring a racing design.
Designated the 718 Cayman GT4 Sports
Cup Edition, it was only available for a brief
period. The sporty and exclusive model cele-
brated its debut at the "Sportscar Together
Day" held at the Hockenheimring on 12 and
13 October 2019. This spectacular event for
Porsche fans celebrated both the opening
of the new Porsche Experience Centre
Hockenheimring and the season finale of
the Porsche Sports Cup.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
CORSCHE
The first active aerodynamics of the 911 Turbo
and the introduction of turbo engines with
particulate filters for the 911 Carrera models
continued the eruption of innovations in the
991 generation. Further highlights came in
2013 with the exclusively equipped 50th-
anniversary edition limited to 1,963 models; the
911 R with aspirated engine (368 kW/500 PS)
in 2016; and the sportily trimmed 911 T, the
high-performance 911 GT3 sports car with
touring package and the one millionth 911
in 2017. That same year, Porsche Exclusive
Manufaktur introduced the 911 Turbo S
Exclusive Series.
In summer 2017, the most powerful and fast-
est 911 with racing technology to date - the
911 GT2 RS took its 515 kW (700 PS) to
the streets. Its naturally aspirated counterpart
followed a few months later in the form of the
911 GT3 RS with racing chassis and 4.0-litre
engine delivering 382 kW (520 PS).
Right on time for the 70th birthday of Porsche
sports cars, the 911 Speedster - introduced
as a concept car in 2018 and available from
2019 - embodied the original virtues of the
company: lightweight construction, efficiency,
purism and driving pleasure. Each of these vir-
tues were represented by the 4.0-litre 375 kW
(510 PS) engine, the six-speed manual gear-
box and a high-performance sports chassis.
The two-seater was not only the last derivative
of the 991 generation but also, in 2019, was
the last of the model series to be produced.
Like its forbear and prototype - the Porsche
356 "No. 1" Roadster of 1948 - it will become
an ambassador of the rolling museum.
PORSCHE CARRERA 4
137
718 CAYMAN GT4 CUP EDITION
Research and development
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
138
Sales, Production, Procurement
Sales
Production
Procurement
At Porsche, our focus is on people.
For us, enthusiastic customers
and job security are what matters.
We collaborate at eye level with all
partners. The Taycan factory is a
commitment to the long-standing
location Zuffenhausen, which is home
to the heart and soul of the brand.
Active Suspension Management (PASM)
damping system with 30 millimetres lower
suspension lowers the centre of gravity and
improves lateral dynamics. Porsche Torque
Vectoring (PTV) and a mechanical rear
differential lock further enhance longitudinal
and lateral dynamics, cornering performance
and driving pleasure. The GT4 also comes with
the option of a "Clubsport" package, which
includes a rear steel roll bar, a handheld fire
extinguisher and a six-point harness on the
driver's side.
One of the biggest upgrades in the history of
the 911 was unveiled in 2011: for the 991,
nearly 90 per cent of all components were
newly constructed or underwent significant
development. Thanks to the lightweight body
in the novel aluminium-and-steel composite
construction, this iteration of the 911 weighed
less than its predecessor for the first time. The
chassis with a wheelbase 100 millimetres
longer and new Porsche Dynamic Chassis
Control (PDCC) roll stabilisation as an option -
set new standards in terms of driving dynam-
ics. In spring 2012, the cabriolet followed
up with another innovation: when closed, the
panel bow top with magnesium elements gave
the roof the curvature of a coupé to an extent
not seen before. The silhouette remained intact
even at high speeds. The introduction of
the new 911 Targa in late 2012 was equally
impressive: just like the legendary original, the
new Targa model featured the wide panel in
place of the B-pillars. But now, at the push
of a button, the front part of the roof could be
automatically moved and placed in the rear.
Research and development
End of production: the last 991-generation
Porsche 911 rolls off the production line
model featuring a racing
design: the Porsche
718 Cayman GT4 Sports
Cup Edition, which was
designed by the sports
car manufacturer together
with the experts from
Style Porsche and the
Porsche Exclusive
Manufaktur.
136
New addition: the 911 Carrera with
all-wheel drive
The Coupé and Cabriolet models were added
to the eighth-generation 911 Carrera 4 range
in September 2019. Like the rear-wheel drive
911 Carrera models, the new 911 Carrera 4
Coupé and 911 Carrera 4 Cabriolet are
powered by a biturbo three-litre six-cylinder
boxer engine that generates 283 kW (385 PS)
at 6,500 rpm. The maximum torque of
450 Nm is available across a broad speed
range from 1,950 to 5,000 rpm, thereby
boosting both performance and everyday
suitability.
Featuring an eight-speed dual-clutch gearbox
(PDK), the 911 Carrera 4 Coupé accelerates
from zero to 100 km/h in 4.2 seconds. The
911 Carrera 4 Cabriolet completes the sprint
in 4.4 seconds, with the optional Sport Chrono
package shaving a further 0.2 seconds off this
time. All acceleration values are thus 0.1 sec-
onds better than in the predecessor. Top speed
is 291 km/h for the all-wheel drive Coupé and
289 km/h for the all-wheel drive Cabriolet.
As with the 911 Carrera 4S models, the im-
proved performance of the 911 Carrera 4
models is down to enhanced front-axle drive.
The clutch and differential unit is now water-
cooled and features reinforced clutch plates
to increase durability and load capacity.
Increased actuating torques at the clutch
improve the latter's adjustment accuracy and
thus the capability of the driven front axle.
The enhanced front-axle drive with Porsche
Traction Management (PTM) promotes
increased traction for all road conditions.
PORSCHE
Panamera
PANAMERA 10 YEARS EDITION
Special anniversary model: Porsche Panamera
10 Years Edition
Porsche celebrated the 10th anniversary of
the Panamera with a special model. The
Panamera 10 Years Edition features particu-
larly extensive standard equipment in terms
of comfort and the chassis, and has also been
enhanced with exclusive design highlights.
For example, the new 21-inch Panamera Sport
Design wheels in satin-gloss White Gold
Metallic and the "Panamera 10" logo on the front
doors, also in White Gold Metallic, are exclu-
sive to the special edition models. The anni-
versary logo can also be found in the interior
on the front-passenger trim panel and on the
door entry guards. The interior is designed in
black partial leather, with decorative stitching
in White Gold creating a particularly
high-quality impression.
New Porsche GTS model: the sportiest Macan
Porsche has supplemented the Macan line
with an emphatically sporty model: the new
Macan GTS was launched with a powerful
engine, performance-oriented chassis, char-
acteristic design and upgraded equipment.
The 2.9-litre V6 biturbo engine delivers
280 kW (380 PS) - 15 kW (20 PS) more
than its predecessor. Combined with the
newly calibrated dual-clutch gearbox PDK
and the optional Sport Chrono package, the
Macan GTS sprints from zero to 100 km/h
in 4.7 seconds - making it three-10ths faster
than before. It has a top speed of 261 km/h.
In combination with the specially designed
Porsche Active Suspension Management
(PASM) electronic damper control, the chassis
- which has been lowered by 15 millimetres -
provides even greater lateral dynamics. The
optional adaptive air suspension lowers the
chassis a further 10 millimetres. Together
with the standard 20-inch RS Spyder Design
wheels and the impressive brake system, the
new Macan GTS makes an impression with
the agility and suddenness of a true sports car.
The Porsche Surface Coated Brake (PSCB)
with tungsten carbide coating and the Porsche
Ceramic Composite Brake (PCCB) are available
as options. The new Macan GTS also under-
scores its unique sportiness with numerous
striking chassis elements which, true to the
GTS style, are painted black or darkened.
Special limited-edition
Exclusive special model: 718 Cayman GT4
Cup Edition
718 SPYDER AND 718 CAYMAN GT4
133
the functional diffuser, it is the first model in
the Boxster family to generate aerodynamic
downforce on the rear axle.
Porsche's first all-elec-
tric sports car: the world
premiere of the Taycan
was the emotional
climax of the reporting
year and marks the
beginning of a new era.
ELECTRIFIED
The opening of the new Taycan production
facility also stands out, with numerous repre-
sentatives from the worlds of politics and
society were on hand for the event in Zuffen-
hausen on 9 September 2019. Media
resonance was significant here as well.
of 191 million.
More than 600 representatives of the media
experienced the event in person, and
7.6 million people were also watching via live
stream. International news coverage was
correspondingly significant: in total, there were
more than 1,500 reports with a total reach
PRESENTATION OF THE TAYCAN TO THE PRESS
Тауса
The world premiere of the Taycan was the
emotional climax of the reporting year. On
4 September 2019, Porsche introduced
its first all-electric sports car, with the prem-
iere taking place on three continents at
the same time. Each of the three premiere
locations symbolised a renewable energy
source, and therefore also the natural energy
with which the Taycan can be powered:
Niagara Falls in Canada represented hydro-
power, a wind turbine installation on the
Chinese island of Pingtan represented wind
power, and the solar installation in Neuharden-
berg, near Berlin, represented solar power.
Since 1 November, Dr Sebastian Rudolph
has been Vice President Communications at
Porsche and, with his assumption of the
position, two fields will take on greater import-
ance: the topic of sustainability as well as
relationships with policymakers and associ-
ations now have the same level of importance
as traditional public and press relations work.
The name of the division is also being expanded
accordingly; it now bears the title of Commu-
nications, Sustainability and Politics.
The tasks of a professional communications
department are wide-ranging: it informs
the public and employees about the company,
while at the same time maintaining positive
relationships with stakeholders and multipliers.
Additionally, it establishes a reputation, in-
creases the value of the brand and fosters
acceptance for the company and its products.
COMMUNICATIONS
124
Employees, Society, Sports, Communications
PORSCHE EUROPEAN OPEN IN HAMBURG
JULIA GÖRGES
Porsche Golf Circle hits new heights
The Porsche Golf Circle, an international
app-based community reserved for golf-loving
Porsche customers, continued to expand
rapidly in its second year and now boasts
3,000 registered members. Not only does the
Porsche Golf Circle enable members to interact
with like-minded individuals across the globe
and visit the editorial section for fascinating
insights relating to golf, Porsche and the
company's activities in the golfing world, it
also organises a host of exclusive events.
In 2019, community members travelled to the
Porsche brand's Stuttgart home, marvelled at
the spectacular city state of Singapore and
enjoyed a behind-the-scenes look at a profes-
sional tournament - the Porsche European
Open in Hamburg.
The Porsche Generations Open, an innovative
competition for amateur golfers, returned for
its fourth edition in 2019. Having originated in
Germany, this concept of a team event featur-
ing players from two different generations
with an age gap of at least 20 years has been
an international hit.
Porsche Generations Open
Porsche Golf Cup celebrates first hole-in-one
Porsche's exclusive series of amateur tourna-
ments for customers was peppered with
highlights in 2019. The top 80 male and
female golfers from 20 countries successfully
qualified for the sixth World Final in Mallorca,
representing the very best of the 17,647
starters who entered a total of 261 qualifica-
tion tournaments. These record entry figures
further underline Porsche customers' real
passion for golf. In addition, Italy's Marco Leoni
recorded a hole-in-one at the last hole of
the World Final in May. Not only was this the
first of its kind in the history of the event, it
happened at the very hole that qualified for a
special bonus prize - a Porsche 911 Carrera S.
South Korea were ultimately crowned the
winners of the World Trophy event in Mallorca.
Established in 1988, the Porsche Golf Cup
is organised by Porsche AG together with
the Porsche Centres and the Porsche sales
subsidiaries.
Porsche Golf Cup World Final 2019
Hole in One
MARCO LEONI
Porsche also offered golfing experiences in the
heart of Hamburg with the Porsche Urban Golf
Challenge at Spielbudenplatz square in the
St Pauli district, providing plenty of thrills and
spills to kick off the tournament. The Porsche
Urban Golf Club at the Strand Pauli beach club
also helped get the crowds in the mood for
golf in the weeks leading up to the event.
Additional pro tournament partnerships
Porsche has served as automotive partner at
events on the Asian Tour and the European
Tour since 2019, presenting the brand at the
SMBC Singapore Open, the Omega European
Masters in Crans-Montana, Switzerland,
and the Mutuactivos Open de España in Madrid.
This commitment to golf emphasises the
brand's international outlook and its relevance
to the markets.
Alongside the golfing elite, another star of the
Porsche European Open 2019 was the new
Porsche Taycan Turbo. Only one day after
enjoying its world premiere, it was unveiled as
the hole-in-one prize at the 17th tee of the
Porsche Nord Course to the delight of players
and spectators alike. Also in attendance were
members of the Porsche Golf Circle and the
South Korea team that won the World Trophy
of the Porsche Golf Cup. Their participation in
a variety of events including the Porsche
European Pro-Am tournament underlined the
close links between Porsche's activities in the
world of golf.
Porsche ran an intensive media campaign for
the Taycan during the lead-up to the premiere:
media representatives were on hand for
vehicle testing and learned more about the
electric-drive concept as part of technology
workshops, for example.
In addition to the Taycan, the company
launched a series of other new models during
the reporting year - from the 911 Cabriolet
and Cayenne Coupé, 911 Speedster,
718 Spyder and GT4, to the new Macan Turbo.
Coordinated communications measures were
taken for each new introduction, including
not only premiere events and appearances
at exhibitions, but also workshops and driving
shows as well as press materials with all of
the technical specifications.
For Porsche motorsports, 2019 was a very
successful year: first- and second-place
finishes at the 24 Hours of Le Mans and the
successful start in Formula E were spectacu-
lar highlights. In their first race, the Porsche
works team took the 99X Electric racing car
straight to a second-place finish. Along the
way, the brand's communications experts
accompanied a total of 30 race events and
issued some 340 press releases.
PRESENTATION OF THE 99X ELECTRIC
Weltexklusiv:
Opel Corsa im ersten Test
drivan
War frer alles bes
SIGO SABE
HAS PORSCHE CREATED AN
ELECTRIC CAR WITH SOUL?
the driver's EV
Taycan:
AUSTRALIA'S CAR MAGAZINE
wheels
auto Sa
"The third Porsche European Open at the
Green Eagle Golf Courses venue was in many
ways a very special tournament for us. We've
seen world-class golf over the extremely chal-
lenging Porsche Nord Course and everything
peaked with a spectacular weekend that
included a record attendance, lovely weather
and an enthralling battle for the title," said
Andreas Haffner, Member of the Executive
Board responsible for Human Resources at
Porsche AG. "The event also enabled us
to deliver an intensive brand experience, even
away from the course."
0179E
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VS TESLA
TAY BAN
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PRIMERA PLEZA
Porsche
Taycan
CAR AND DRIVER
Tradition and future:
with the 99X Electric
(above), Porsche got off
to a successful start
in Formula E. The multi-
time Le Mans winner
917 (right and below)
celebrates its 50-year
anniversary.
O DESPORTIVO
Sicherheit, Verbrauch 100% ELETRICO
und Fahrspaß:
Diese Autos sind top
Erster Test auto
"As a fan of sports cars, I felt very much at
home this week, and it certainly helped me. It
really is a very special win," he said. Like Casey,
the top US trio of Xander Schauffele, Patrick
Reed and Matt Kuchar took their chance
during the week of the tournament to escape
the confines of this demanding course and
make use of the many opportunities to experi-
ence Porsche sports cars up close in and
around Hamburg.
Porsche European Open in Hamburg
LEIPZIG QUARTER-FINALS
City pro-
Porpl
PETRA KVITOVA
Each year, the best of RB Leipzig's youth
teams is also crowned the Porsche Talent
Team, with the U19 outfit taking this title in
2019.
A further aspect of this partnership with RB
Leipzig is the Porsche Coaching Bench, which
gives families with football-loving children
the chance to experience live matches right on
the touchline. The sports car manufacturer
recruits children aged between five and 10 to
accompany their heroes out on to the pitch.
At the home match against TSG Hoffenheim on
7 December 2019, one of these 11 young
football fans was the 911th. Having served
as a mascot since the start of this campaign,
number 911 was allowed to pick out their
favourite RB Leipzig player and also received
a football signed by the whole team. At the
RB Leipzig training ground events, Porsche
helps the Bundesliga team spot upcoming
talents. Additionally at the football camp run
by the RB Leipzig Football School, junior
players can show off their skills and have lots.
of fun learning more about the game. Porsche
supports socially disadvantaged children
by paying the entrance fee on their behalf. On
top of this, the inclusion camp at the football
school helps children with and without
disabilities learn from and with one another.
in August 2019, four regional clubs once
again received donations from Porsche as a
thank you for hosting the preliminary rounds
of this tournament in May. SG Olympia 1896
Leipzig, SV Lokomotive Engelsdorf, Leipziger
Sport-Club 1901 and TSV Böhlitz-Ehrenberg
1990 were each awarded 2,000 euros to-
wards their youth programmes.
The Leipzig Quarter-Finals is a popular youth
football tournament that has been run by
Porsche and RB Leipzig since 2015. This event
welcomes U11 and U14 youth teams each
representing one of four Leipzig city districts.
Over 1,000 children and young people again
took part in the 2019 edition of this popular
tournament, with the winning teams afforded
the rare honour of receiving their trophies
during the half-time break of a Bundesliga
match at the Red Bull Arena - cheered on by
thousands of fans. Regional football clubs
also benefit from the "Leipzig Quarter-Finals":
Porsche and the football club RB Leipzig have
worked together in the field of youth support
since 2014, encouraging children and young
people to participate in team sports while
nurturing their individual potential. This collab-
oration also makes it easier for children from
socially disadvantaged families to access team
sports and professional competition.
Sports funding in the Leipzig region
Cayenne with trailer was specially developed
for youth support, featuring sporting equip-
ment and training modules for measuring
individual performance through play. In this
way, young talents can better assess their
sporting capabilities and adapt their approach
to training accordingly. Age-specific reference
values also make the results easy to compare.
The Porsche Coaching Mobile was in action
across Germany almost every weekend from
April to October 2019. Its 34 days of appear-
ances extended far beyond the five partner
clubs in the Stuttgart and Leipzig regions, with
nearly 4,000 children and young people taking
part in the various events.
Another attraction at the ADM Youth Days is
the Porsche Coaching Mobile: this Porsche
The ADM Youth Days event run by Stuttgarter
Kickers gives around 1,200 children the
chance to participate in an exciting football
tournament and a wide range of additional
activities. With support from Porsche, this
tournament welcomes over 100 youth teams
from across the region in four age groups.
In the reporting year, selected junior players
at the partner clubs received the 2019 Turbo
Awards. These honours were bestowed on
12 young talents from the four clubs
whose outstanding sporting development,
educational performance and social commit-
ment ensure that they already serve as role
models for their peers. Alongside sporting
performance, significant emphasis is therefore
placed on balancing sports training and
schoolwork as well as social responsibilities
within the club. As a special bonus, the
winners also received a driving safety training
course or a grant towards the cost of a
driving licence.
Sports funding in the Stuttgart region
For a number of years, Porsche has supported
children and young people in the Stuttgart
area at its partner clubs SG Sonnenhof
Grossaspach (football), SV Stuttgarter Kickers
(football) and SC Bietigheim-Bissingen
Steelers (ice hockey), as well as at the Porsche
Basketball Academy in Ludwigsburg. This
collaboration aims to provide the next gener-
ation with sporting and social support through
shared experiences while also preparing
them for their subsequent work life.
TURBO FOR TALENTS
in the sports sponsor-
ship strategy.
As a manufacturer of
sports cars, Porsche
maintains close links to
the sporting world with
its products and its
involvement in motor-
sport. Furthermore, its
diverse and sustainable
commitment to other
sports is anchored
Beyond the professional arena, another key
pillar of the sports sponsorship strategy is to
introduce young people to the social benefits
of sport. Porsche therefore supports youth
sport at its Stuttgart and Leipzig production
sites as part of its wide-ranging Turbo for
Talents programme. In addition to high-quali-
ty sports training, this programme also pro-
motes the social and personal development of
children and young people.
Sami Khedira has been an ambassador for
Porsche's youth support programme since
2018. A 2014 World Cup winner who played
a number of seasons for VfB Stuttgart,
Khedira makes appearances at a variety of
events and provides important tips to help
young players maintain the right attitude
and behaviour both on and off the pitch.
of Porsche's activities in the field, with the
company having established the Porsche Golf
Cup in Germany over 30 years ago. The
international growth of this exclusive series
of amateur tournaments for customers has
demonstrated the relevance of golf to the
target group, inspiring a move into the men's
pro game with the Porsche European Open.
As a manufacturer of sports cars, Porsche
maintains close links to the sporting world
with its products and its involvement in motor-
sport. Furthermore, its diverse and sustain-
able commitment in this area is anchored in
the sports sponsorship strategy. The
company has promoted women's tennis since
1978, when it became a title partner at the
inaugural Porsche Tennis Grand Prix in Filder-
stadt, Germany. Its involvement in tennis
has grown from strength to strength around
the world. Golf is also a traditional focus
SPORTS
Tennis
Petra Kvitova wins Porsche Tennis Grand Prix
It was seventh time lucky for Czech star Petra
Kvitova as she won the Porsche Tennis Grand
Prix in front of a sell-out crowd of 4,400 at the
Porsche Arena on 28 April 2019. Kvitova was
rewarded with a Porsche 911 Carrera 4S
Cabriolet for this latest triumph in her highly
successful career, having previously won the
prestigious singles title at Wimbledon in 2011
and 2014, along with a total of six Fed Cup
crowns as part of the Czech Republic team.
While Kvitova has experienced a great many
sporting highlights, she sustained career-
threatening injuries to her dominant left hand
during a knife attack in her flat in Prostejov on
20 December 2016. Following four hours
of surgery and six months of not being able to
use her hand, she made her way back to the
top. "After an experience like that, every match
I can play is like a gift," said Kvitova.
The crowd at the Porsche Arena surely had her
remarkable recovery on their minds as they
saluted the achievement of this 29-year-old,
one of the most popular players on the WTA
Tour, with a standing ovation lasting several
minutes. Estonia's Anett Kontaveit proved a
worthy opponent, with the favourite forced to
draw on all her experience as she recorded a
6-3, 7-6 victory that saw her fulfil her dream
of winning the Porsche Tennis Grand Prix.
"I love playing in front of this amazing crowd,
and I'm overjoyed to have finally won this fan-
tastic tournament," said Kvitova after taking
match point. And as Chairman of the Executive
Golf
HUCE TO H
PORS
RACE TO SH
ANGELIQUE KERBER
MARIA SHARAPOVA
123
Maria Sharapova, Angelique Kerber and Julia
Görges are a trio of world-class players and
the faces of Porsche's successful commitment
to women's tennis. Boasting class and charac-
ter both on and off the court, they represent
Porsche and its philosophy around the world as
brand ambassadors.
in Germany to a series of international triumphs
including Angelique Kerber's singles victory at
Wimbledon in 2018. These fantastic results
also serve as extra encouragement for budding
junior players throughout the country. Inspired
by Porsche's successful nurturing of young
motorsport talent, the Porsche Talent Team
offers professional support to help the next
generation fulfil their potential. And as young
players always need role models to look up to,
Porsche is establishing the necessary frame-
work to support tomorrow's role models today.
powering the development of women's tennis
PORSCHE RACE TO SHENZHEN
a premium partner of the DTB since 2012,
Star players, the new Taycan and a thrilling
battle Porsche was the title partner of this
prestigious European Tour event for the fifth
time in September 2019, offering a fantastic
brand experience to a crowd of over 39,000 as
they enjoyed top-quality golf in Hamburg. In
an exciting finale at the Porsche Nord Course
run by Green Eagle Golf Courses, England's
Paul Casey topped the leader board ahead of
home favourite Bernd Ritthammer.
In addition to this global partnership with the
WTA and the Porsche Tennis Grand Prix, the
company's close cooperation with the German
Tennis Federation (DTB) represents another
key pillar of its successful involvement in
the world of women's tennis. Porsche has been
Bigger and better: successful partnerships
with the WTA and DTB
"We'd like to warmly congratulate Ashleigh
Barty on winning the Porsche Race to
Shenzhen. Her prize of the athletic Cayenne
Coupé is the fitting reward for her magnificent
tennis performances this season," said Detlev
von Platen, Member of the Executive Board
responsible for Sales and Marketing at
Porsche AG. "The WTA Finals in China are
another highlight in our successful partner-
ship with the WTA and the perfect finale to
a fantastic tennis year."
The Porsche Race to Shenzhen was won by
Ashleigh Barty of Australia in 2019. By head-
ing the Porsche ranking, the world number one
secured her place at the first edition of the
WTA Finals to be held in the Chinese high-tech
city of Shenzhen. This exclusive event is
reserved for the eight most successful singles
and doubles players of the season. Top-ranked
Barty also received a Porsche Cayenne Coupé
in honour of her achievement.
Both feature a high-performance GT chassis
with superior cornering dynamics. The Porsche
Porsche Race to Shenzhen: Ashleigh Barty
wins Cayenne Coupé
122
Employees, Society, Sports, Communications
121
Porsche has sponsored the Porsche Tennis
Grand Prix since 1978 and took over as event
organiser in 2002. This tournament at the
Porsche Arena in Stuttgart has developed into
a WTA Tour showpiece. The players them-
selves have voted it the world's best tourna-
ment in its category no fewer than 10 times,
with its most recent triumph coming in the
reporting year.
Two players from Porsche Team Germany also
had reason to celebrate on finals day, as
Mona Barthel and Anna-Lena Friedsam took
a shock 2-6, 6-3, 10-6 victory in the
doubles tournament over the highly favoured
Czech-Russian pairing of Lucie Safarova
and Anastasia Pavlyuchenkova. Remarkably,
this was the first time they had ever competed
together quite a successful debut.
Board Oliver Blume presented the champion
with the keys to her 911 Carrera 4S Cabriolet,
she added with a wink: "This car is a wonder-
ful bonus."
Through its partnership with the WTA,
Porsche is the title partner of the Porsche
Race to Shenzhen and the exclusive auto-
motive partner of both the WTA and the WTA
Finals. The sports car manufacturer is further
expanding its role as exclusive automotive
partner of key WTA tournaments around the
world - supported by the respective markets
and Porsche Centres, its appearances in 2019
included St Petersburg (Russia), Dubai (UAE),
Monterrey (Mexico), Birmingham (UK), San
Jose (US), Cincinnati (US) and Linz (Austria).
Porsche
Porsche extended its successful global part-
nership with the Women's Tennis Association
(WTA) in 2019, remaining the title partner
of the Porsche Race to Shenzhen - the official
qualification ranking for the WTA Finals.
Players can collect ranking points at a total of
56 tournaments throughout the season
(52 WTA events plus four Grand Slams). In a
nod to Porsche's motorsport background,
every tournament is symbolised with its own
pit board. The partnership ensures that the
company maintains a year-round presence on
the global WTA tour.
CONTACTOS New X3 Serie 1 Toyota Camry
Cayenne Coupé
Striking appearance: the Porsche
For the first time, the Porsche Active Suspen-
sion Management (PASM) sport chassis is
available for the 911 Cabriolet. The springs
featured in this are harder and shorter, the
front and rear anti-roll bars are more rigid and
the overall chassis has been lowered by 10
millimetres. These adjustments give the 911
a more neutral feel on the road, with better
weight distribution.
between 2,300 and 5,000 rpm. Power trans-
mission is handled by an 8-speed dual-
clutch gearbox. The 911 Carrera S accelerates
from zero to 100 km/h in 3.9 seconds (with
optional Sport Chrono package: 3.7 seconds)
and can reach a speed of up to 306 km/h.
The 911 Carrera 4S attains a top speed of
304 km/h and goes from zero to 100 km/h
in 3.8 seconds (with optional Sport Chrono
package: 3.6 seconds).
Both cabriolets rely on a 2,981 cm³ charged
six-cylinder boxer engine with 331 kW
(450 PS) at 6,500 rpm and 530 Nm torque
Opening up: the Porsche 911 Cabriolet
Porsche unveiled the new 911 Cabriolet to the
public in early January 2019. This open-top
911 was available as the 911 Carrera S with
rear-wheel drive and as the 911 Carrera 4S
with all-wheel drive upon its release. The new
version of the iconic sports car includes all
the innovative features of the coupé, along with
cabriolet-specific advanced features such as
new hydraulics which get the fully automatic
soft top opened and closed more quickly than
ever. This top, which boasts structurally inte-
grated panel bow magnesium elements that
reliably prevent the roof from raising at high
speeds, can be opened or closed while driv-
ing at up to 50 km/h. The new roof hydraulics
cut the opening time to around 12 seconds,
while an electrically extendable wind deflector
takes the edge off the breeze at the back.
NEW 718 CAYMAN GT4 CLUBSPORT FEATURING ORGANIC FIBRE BODY PARTS
the 911 GT3 R.
As the basic variant, the "Trackday" is aimed
at amateur drivers who want to take part in
private racetrack and Clubsport events
without major effort or outlay. The non-road-
homologated car can be serviced at all
Porsche Centres. The "Competition" model
features a raft of details relevant for racing,
among them three-stage adjustable shock
absorbers, an adjustable brake balance
system, an integrated air jack system and
the quick-release racing steering wheel from
Powering the 718 Cayman GT4 Clubsport is
a 3.8-litre six-cylinder boxer engine with
313 kW (425 PS). Compared to its predeces-
sor, this represents a 29 kW (40 PS) increase
in performance. Power is transferred to the
rear wheels via a Porsche dual-clutch 6-speed
gearbox with six gears and mechanical
rear-axle differential lock. At 1,320 kilograms,
the 718 Cayman GT4 Clubsport is a real
lightweight and comes with a welded-in safety
cage, a racing bucket seat and a six-point
harness as standard.
The focus during its development was on the
sustainable use of raw materials - in addition
to improved handling and faster lap times.
As the first series-produced racing car, it fea-
tures body parts made from an organic fibre
composite. The natural fibre mix featured
in the driver and co-driver doors and the rear
wing - are made of an organic fibre mix,
which are sourced primarily from agricultural
by-products such as flax or hemp fibres and
feature similar properties to carbon fibre in
terms of weight and stiffness.
as standard: the "Trackday" model is pitched at
ambitious amateur racing drivers, while the
"Competition" model is intended for national
and international events.
Three years after the debut of the first Cayman
GT4 Clubsport, Porsche unveiled its succes-
sor. For the first time, this mid-engine produc-
tion racing car is available in two variants
New Porsche 718 Cayman GT4 Clubsport
with organic-fibre body parts
For Porsche, the last year was all about the
Taycan, the fully electric sports car that
signalled the beginning of a new era for the
sports car manufacturer. There were also a
number of additional important introductions.
RESEARCH AND DEVELOPMENT
Change is occurring at breakneck.
pace and the Porsche Research
and Development team gives
it a structure. It fuses the brand's
traditional roots with future
technologies, creating fascinating
and emotionally appealing products
like the new Taycan.
Technology
Research and development
Vehicles
128
CARRERA ONLINE
Employees, Society, Sports, Communications
127
In March 2019, an even sportier car was
added to the third generation of the success-
ful Cayenne range - the Cayenne Coupé.
It includes all the technical highlights of the
current Cayenne, but has a more dynamic
design and new technical details that position
it as more progressive, athletic and emotional.
Highlights include a sharper design with a
totally unique rear end, an adaptive rear spoil-
er, a rear bench with the characteristics of two
individual seats and two roof concepts: the
standard panoramic fixed-glass roof and the
optional carbon roof.
With its adaptive roof spoiler, the current
Cayenne Turbo was the first SUV to feature
this type of active aerodynamics. The new
Cayenne Coupé continues to lead the way
in this respect: on each Cayenne Coupé,
a fixed roof spoiler is combined with a new
adaptive rear spoiler as part of Porsche Active
Aerodynamics (PAA). The spoiler is harmoni-
ously integrated into the model's silhouette
and extends by 135 millimetres at speeds
at or greater than 90 km/h, increasing the
contact pressure on the rear axle while PAA
simultaneously enhances efficiency.
Two high-performance engines were available
to begin with at market launch. Featuring
a six-cylinder turbocharged engine and
3.0-litre displacement, the Cayenne Coupé
delivers 250 kW (340 PS) and a maximum
torque of 450 Nm. The Sport Chrono package
fitted in series-production cars achieves the
standard sprint from zero to 100 km/h in 6.0
seconds, with the optional lightweight sports
packages cutting this figure to 5.9 seconds.
Top speed is 243 km/h. With a four-litre V8
engine featuring biturbo charging, 404 kW
(550 PS) and maximum torque of 770 Nm,
the Cayenne Turbo Coupé goes from zero to
100 km/h in 3.9 seconds from a standing
start and has a top speed of 286 km/h.
Taycan
The new 718 Spyder is a puristic machine for
driving pleasure with a lightweight convertible
top that can cope with high speeds. It con-
tinues the history of such famous roadsters
as the Porsche 550 Spyder and the 718 RS
60 Spyder. Open or closed, it thrills with a
captivating silhouette. The top is suitable for
everyday use and can be stowed away under
the boot lid in just a few steps. Unlike the GT4,
the 718 Spyder has a rear spoiler that raises
automatically at 120 km/h. Thanks to
Among the striking features of the
718 Cayman GT4 is the comprehensively
improved aerodynamics package. It produces
up to 50 per cent more downforce without
adversely affecting drag - proof of outstanding
efficiency. The aerodynamics of both models
benefit enormously from the newly designed
single-chamber arch rear silencer: this creates
space in the rear section for a functional
diffuser, which accounts for a good 30 per
cent of the downforce on the rear axle in the
718 Cayman GT4. The fixed rear wing is also
marked by its greater efficiency, producing
around 20 per cent more downforce than its
predecessor. This corresponds to an additional
12 kilograms of downforce at 200 km/h.
The front section, which is optimised in the GT
style, maintains aerodynamic balance with a
large front spoiler lip and air curtains.
304 km/h. Each accelerates from zero to
100 km/h in 4.4 seconds, and engine speed
maxes out at 8,000 rpm.
In June, Porsche unveiled the new 718 Spyder
and the 718 Cayman GT4 - a pair of par-
ticularly emotive and powerful flagship models
at the very top of the line-up. At the heart of
both models is the new four-litre six-cylinder
boxer engine. The naturally aspirated engine
is based on the same family as the turbo-
charged engines in the current 911 Carrera
series. This new high-revving unit generates
309 kW (420 PS) - 35 PS more than in
the previous GT4. The third generation of the
Spyder has 45 PS more than its predecessor.
Peak torque of 420 Nm arrives between
5,000 and 6,800 rpm. Both sports cars are
equipped with manual gearboxes and are
capable of breaking the 300 km/h barrier: the
718 Spyder has a top speed of 301 km/h,
while the 718 Cayman GT4 can reach
High performance: the Porsche 718 Spyder
and 718 Cayman GT4
SVM 1948
The Porsche 911
Speedster combines the
demands of a puristic,
driver-oriented car with
motorsport technology
suitable for everyday
use. Visually, it estab-
lishes a bridge to its own
history - to the forebear
of all Porsche sports
cars, the 356 "No. 1"
Roadster from 1948.
power of 375 kW (510 PS) at 8,400 rpm, the
911 Speedster accelerates from zero to
100 km/h in 4.0 seconds and reaches a top
speed of 310 km/h. Befitting its status as a
driver's car, Porsche only offers the 911 with
a manual six-speed sports gearbox. The GT
philosophy behind the new Speedster is also
reflected in its chassis. With its sporty rear-
axle steering and dynamic engine mounts, the
chassis is based on the technology of the
911 GT3 and 911 R. Control systems such as
Porsche Torque Vectoring (PTV), Porsche
Stability Management (PSM) and PASM with
sports tuning including lowering by 25 milli-
metres - have been precisely adapted to the
new requirements.
The heart of the Speedster is adopted from the
911 GT3. The naturally aspirated six-cylinder
boxer engine with four-litre displacement peak
A weight-saving roof structure replaces the
basic tonneau cover of the concept car, with
the convertible top taking no effort to operate.
Lightweight design also dictates other body
components of the Speedster. The carbon-
fibre composite bonnet - which weighs in two
kilograms lighter than on the 911 GT3 - and
the carbon-fibre composite wings originate
from the 911 R. And while the front apron was
borrowed from the GT3, the front spoiler lip
is a completely new development. Instead of
the Talbot mirrors used on the concept car,
the production version of the new Speedster
features electrically adjustable and heated
Sport Design exterior mirrors. The extending,
aerodynamically tuned rear spoiler and rear
apron have been drawn from the 911 GT3
Touring for the Speedster.
PORSCHE NEWSROOM
This new Speedster combines the demand of
a puristic, driver-oriented car with motorsport
technology suitable for everyday use. Many
of its details are based on the 911 R (2016)
and 911 GT3. Through its characteristic
lightweight convertible top compartment lid
featuring "double-bubble" streamliners, the
Speedster establishes a visual bridge to its
own history to the forebear of all Porsche
sports cars, the 356 "No. 1" Roadster from
1948. The limited-edition new 911 Speedster
is also reminiscent of this car. Production
of a run of exactly 1,948 units began in mid
2019 at the main plant in Zuffenhausen.
132
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Research and development
PORSCHE CAYENNE COUPÉ
PORSCHE 911 CABRIOLET
more progressive,
athletic and emotional.
The new Cayenne Coupé
includes all the technical
highlights of the current
Cayenne, but has a
more dynamic design
and new technical
details that position it as
PORSCHE CAYENNE COUPÉ
SC01562
The Cayenne Turbo S E-Hybrid Coupé followed
in August as the new flagship model. Its system
output of 500 kW (680 PS) and maximum
system torque of 900 Nm enable it to acceler-
ate from zero to 100 km/h in 3.8 seconds
and to reach a top speed of 295 km/h. On top
of this, the hybrid range from Porsche now
includes the new Cayenne E-Hybrid Coupé
boasting a system output of 340 kW (462 PS),
torque of 700 Nm and an electric range of up
to 43 kilometres.
In May 2019, Porsche unveiled the Cayenne S
Coupé as a further variant featuring a 2.9-litre
V6 engine with biturbo charging and 324 kW
(440 PS). Its maximum torque of 550 Nm
guarantees powerful acceleration. The SUV
coupe accelerates from a standing start to
100 km/h in 5.0 seconds in combination with
the standard Sport Chrono package. This
figure drops to 4.9 seconds with the three
optional lightweight sports packages. Top
speed is 263 km/h.
Limited-edition Porsche 911 Speedster
with 375 kW (510 PS)
Informed neighbours
and employees: the
community newspaper
targa is geared towards
residents of the differ-
ent locations of the
company. The Carrera
media family provides
relevant news and infor-
mation to employees.
131
provides transparency with regard to import-
ant upcoming events such as construction
plans. If necessary, the local residents can
also be addressed by letter, and there are also
regular dialogue events.
Porsche's own media once again received
numerous awards in 2019: the Porsche
Newsroom earned the top prize in the Digital
category of the Automotive Brand Contest,
and Porsche newsTV also received accolades.
The video and live-stream channel of the
Porsche Newsroom received top honours in
the Website & Channel category. Additionally,
the reporting year also featured the OttoCar
and the Delphin trophy in the Web TV category
of the Cannes Corporate Media & TV Awards.
newsroom
Additionally, the digital agenda setting is
flanked by the far-reaching social media chan-
nels - and with great success: since the start
of the Porsche Newsroom in 2014, the num-
ber of page impressions has increased more
than eightfold, having most recently reached
some 5.5 million.
the brand.
Communicators at Porsche make use of a wide
range of modern instruments and channels,
thereby reaching all stakeholders quickly and
efficiently. The Porsche Newsroom has devel-
oped into a central point of contact for media
representatives who are interested in topics
related to Porsche. There are now five different
languages available: German, English, Chinese,
Spanish and Russian. The online magazine
offers up-to-date information, data, reports
and background reports on a daily basis.
Photos, infographics and videos round off the
broad-spectrum offer, making the Newsroom
a helpful research instrument for both
journalists and bloggers as well as fans of
There were several anniversaries during the
reporting year: the multi-time Le Mans winner
917 and the 914 - the first mid-engine series
sports car celebrated 50 years of existence. A
new era began for discerning sports car drivers
with the introduction of the first Porsche 911
GT3 20 years ago. And it has been 10 years
since the Panamera made its way to the
market. The museum celebrated the milestone
anniversaries of the historic vehicles with,
among other things, special exhibitions.
126
Employees, Society, Sports, Communications
GOODWOOD FESTIVAL OF SPEED
The Heritage and Porsche Museum depart-
ment is tasked with historical communication,
the goal of which is to lead the tradition of
the brand into the future in an authentic and
lively way - via exhibitions in the museum in
Zuffenhausen, for example. Porsche also uses
its historical sports cars around the world as
brand ambassadors on wheels. The collection
consists of more than 650 cars, and the
museum also is home to the company archives.
As the memory of Porsche, it preserves all im-
portant information with economic, technical,
social or cultural relevance to Porsche AG.
At the annual press conference in mid March,
Porsche presented positive key figures for
2018, with some 100 representatives of the
international media on hand. Porsche also
broadcast this event live on the Internet. The
resulting news coverage had a global reach
of some 26.3 million.
The 9:11 magazine brought home three OttoCar
awards from the AutoVision festival in 2019,
with prizes in the categories for reporting, online
videos and motorsport. The 9:11 magazine is a
video series which portrays the Porsche brand
in online videos with running times of 9 minutes
and 11 seconds. Additionally, online journalists
and bloggers can use the videos or footage
for their own channels.
50 YEARS OF THE 917
128
EMU KOREAN FACES DAVOR
Genesis G70
8745334
125
TITLE PAGES OF PRESS ARTICLES ON THE TAYCAN (PRINT, ONLINE)
Kia XCoed gegen VW T-Roc
DESAFIO SUV ELECTRICOS Meer la pesa comprar Meretes EXC Audr
PORSCHE TAY CAN
Porsche addresses its employees via the
Carrera media family, which appears on the
company intranet as Carrera Online, in an app
for smartphones and tablets as Carrera Mobil
and in video form as Carrera TV. Each day, the
editorial office published up to three articles
on current events from the world of Porsche. In
addition, the Internal Communications depart-
ment publishes the Carrera local site news-
papers around once per month in three local
editions (print run: 7,600 copies). The Carrera
magazine is published four times per year (print
run: 35,000 copies). In 2019, Carrera garnered
three Fox Awards, the Astrid Award, the
Mercury Excellence Award, the German Design
Award and the Automotive Brand Contest.
Leus RX
THE AUTOMOBILI PININFARINA PAVILION
Social media is becoming increasingly import-
ant as a means of communication. During
the reporting year, the Twitter account of
Porsche's PR department had some 1.8 million
followers (an increase of 12.5 per cent compared
to 2018) and 65 million impressions (up eight
per cent). On Instagram, Porsche communicators
reached some 525,000 followers (up 125 per
cent), and the number of impressions increased
by 99.2 per cent to a total of 141 million.
0917
optimised for the racetrack
RUS
Formula E
Team
Hungry for every curve and
PHO
Porsche
STO
TAG H
Inside Ethe
The community newspaper targa – Nachrichten
für die Nachbarn is geared towards residents
of the three locations of the company,
Zuffenhausen, Weissach and Leipzig, and
In the reporting year, the customer magazine
was honoured with the German Design Award
2019, the 25th Communication Award, the
Automotive Brand Contest and the OttoCar
2019. The Christophorus Edition - a book
series for sports car enthusiasts interested in
cultural and societal topics - has supple-
mented the magazine since the end of 2018.
With eight million impressions and 589,000
followers, the Porsche profile on the Drive Tribe
Internet platform also continues to demon-
strate significant success. In 2019, all social
medial outlets together resulted in 214 million
impressions and nearly three million followers.
Since 1952, the multi-award-winning maga-
zine Christophorus has been geared towards
customers and fans of the brand and is
currently issued quarterly in 13 different
languages. In addition to the print version with
a global run of 600,000 copies, an online
version is also available in all languages.
Team
CHRI
Porsche
Formula
9:11 MAGAZINE
CHRISTOPHORUS ONLINE
CHRI
Online portal: the
Porsche Newsroom is
the central news and
research source for
interested journalists,
online multipliers
and stakeholders.
STO
PHO
RUS
Inside E: the
TAG Heue
optimised for the
Net assets
instruments.
of the Porsche AG Group
Current other financial liabilities amounted to
€ 3,082 million (prior year: € 3,441 million).
The decline primarily relates to the € 492 million
decrease in the liability for transferring profit
after taxes to Porsche Holding Stuttgart GmbH.
This was offset by a € 138 million increase in
the market-to-market of derivative financial
Trade payables decreased to € 2,582 million
from € 3,134 million in the previous year due to
payment processing in line with standard busi-
ness practice.
Non-current and current financial liabilities rose
from € 5,859 million to € 7,614 million. The
primary reasons for the increase were twofold.
Firstly, a € 1,000 million bond was placed in
August 2019. The tranches maturing were refi-
nanced by means of existing bonds in the
amount of € 339 million. Secondly, it was neces-
sary to recognize € 910 million in lease liabilities
in connection with the right-of-use assets rec-
ognized in property, plant and equipment due to
the initial application of IFRS 16. There was also
growth in refinancing the financial services
business in the form of asset-backed securities
and bank loans.
Provisions for pensions and similar obligations
increased by € 1,646 million. This was due
primarily to actuarial adjustments of present
values amounting to € 1,230 million. There was
also a significant rise in the number of eligible
employees.
Deferred income tax liabilities amounted to
€ 681 million compared with € 650 million in
the prior year.
Non-current other financial liabilities recorded
growth of € 258 million. This increase relates
mainly to the market-to-market of derivative
financial instruments.
Non-current liabilities relate to pension provi-
sions, other provisions, deferred tax liabilities,
other financial liabilities, and other liabilities.
They rose by €3,974 million to € 13,639 million
in comparison with the prior year. Non-current
liabilities expressed as a percentage of total
capital increased from 26 per cent in the prior
year to 32 per cent at the end of the fiscal
year. Non-current financial liabilities rose by
€ 1,731 million.
By contrast, the € 866 million remeasurement
from pension plans net of tax, the € 528 million
change after tax in the hedge reserve, and the
€ 19 million acquisition of non-controlling inter-
ests generated decreases in equity.
Cash, cash equivalents and time deposits in-
creased by € 876 million year-on-year to
€ 3,511 million.
€ million
The equity of the Porsche AG Group increased
by € 951 million to € 17,428 million compared
with the prior-year reporting date. The profit
after tax, profit transfer and dividends of € 999
million together with currency translation
differences of € 92 million and a capital contri-
bution by Porsche Holding Stuttgart GmbH
amounting to € 1,273 million generated
increases in equity.
Current liabilities decreased from € 12,017 mil-
lion to € 11,299 million, while expressed as a
percentage of total capital they decreased from
31 per cent to 27 per cent as of the end of the
past fiscal year.
Assets
Other provisions
Property, plant and equipment
Leased assets
Current liabilities
Current other financial assets increased by
€ 123 million to € 2,415 million. The increase
mainly relates to the clearing account with
Porsche Holding Stuttgart GmbH and receivables
from loans to VW Group companies in the
amount of € 261 million. By contrast, the mark-
ing-to-market of derivative financial instruments
resulted in a decrease of € 148 million.
Tax payables
Other liabilities
Other financial assets
Trade payables
Financial liabilities
Provisions for taxes
Other financial liabilities ¹)
Other liabilities
Non-current liabilities
Other receivables
Other financial assets
Financial services receivables
Trade receivables
Inventories
Other financial assets
Other receivables
Deferred tax assets
Non-current assets
Intangible assets
Non-current and current receivables from
financial services rose from € 2,386 million to
€ 2,683 million. This item mainly comprises
receivables from finance leases and receivables
from customer and dealer financing.
451
€ 1,355 million as against € 730 million in
the prior year.
Cash, cash equivalents and time deposits
Current assets
1
297
1
Securities
0
81
0
95
Tax receivables
1
468
1
490
1) The prior-year figures were restated.
3,511
As a percentage of total assets, current assets
amounted to 30 per cent compared with
29 per cent in the prior year. Inventories increased
from € 3,889 million in the prior year to € 4,013
million at the end of the reporting period.
8
7
Deferred income tax assets amounted to
Non-current other financial assets decreased by
€ 48 million to € 8,350 million. The decrease
was due to the marking-to-market of derivative
financial instruments.
Fixed assets expressed as a percentage of total
assets amounted to 42 per cent (prior year:
42 per cent). Intangible assets increased from
€ 4,929 million to € 5,085 million. The increase
mainly resulted from additions to acquired
licenses and advance payments made. Property,
plant and equipment increased by € 1,696 million
year-on-year to € 8,624 million, which was
due primarily to additions and reclassifications
relating to advance payments made and assets
under construction and to buildings and land,
right-of-use assets relating to buildings and
land due to the initial application of IFRS 16,
technical equipment and machinery, and other
equipment, furniture and fixtures. The additions
not relating to IFRS 16 consist mainly of pro-
duction systems, tools and construction work
for the new generations of vehicles. By contrast,
the launch of production for the new Taycan
series caused a decline in advance payments
made and assets under construction due to the
reclassification as property, plant and equip-
ment subject to wear and tear. Leased assets in-
creased by € 53 million in comparison with the
prior year, to € 3,829 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 intan-
gible assets, property, plant and equipment,
leased assets, equity-accounted investments
and other financial assets - amounted to
€ 17,982 million, compared with € 16,099 mil-
lion in the previous fiscal year. Of this increase,
a substantial amount (€ 902 million) is attribut-
able to right-of-use assets that must be recog-
nized for the first time on initial application
of new accounting standard IFRS 16 - Leases.
The effect of transitioning to IFRS 16 amounted
to € 831 million.
Non-current assets increased by € 2,699 million
to € 29,707 million. The increase relates mainly
to fixed assets and to deferred tax assets.
Non-current assets expressed as a percentage
of total assets amounted to 70 per cent (prior
year: 71 per cent).
As of 31 December 2019, the total assets of
the Porsche AG Group stood at € 42,366 million,
11 per cent higher than on the prior-year
reporting date.
NET ASSETS
100
38,159
100
42,366
29
11,151
30
12,659
2,635
159
3,441
17,428
9
8
3,082
8
3,134
6
2,582
6
2,215
5
2,239
5
1,951
5
2,118
1,077
0
3
3
6
160
Financial analysis
100
38,159
100
42,366
31
12,017
27
11,299
0
93
0
72
1,087
Equity and Liabilities
Equity
96
129
681
Deferred tax liabilities
2
778
2
996
Other provisions
10
3,792
13
5,438
Provisions for pensions and similar obligations
43
16,477
41
2
0
650
Financial liabilities ¹)
26
9,665
32
13,639
1
402
1
492
1
399
657
10
3,644
13
5,375
2
2,292
and landing vehicle. Engineers from both
2,415
in Atlanta in late 2017, the service has been
available in four other cities in the United
States and Canada since September 2019:
Las Vegas, Phoenix, San Diego and Toronto.
Using an app, customers can switch vehicles
flexibly to meet their needs, with a selection
of up to 20 different models. The vehicle is
delivered to any location within the contractual
territory and handed over personally by
the concierge.
The premium car rental service "Porsche Drive"
offers customers the ability to rent Porsche
cars from all six model series - for a few hours
and up to 28 days. Upon request, the car
can be delivered and picked up. With the
expansion into further cities, the range of the
offer has increased significantly to a total of
19 locations in Germany, the United States,
Canada, Switzerland and France. Additionally,
the first Porsche Drive location in Asia opened
in December 2019 in Tokyo, Japan. In addition
to "Passport" and "Drive", Porsche has intro-
duced Porsche Host in the United States
in collaboration with car-sharing platform
provider Turo. Since October 2018, private
individuals have been able to use the Turo
peer-to-peer sharing platform for short-term
access to Porsche vehicles of other private
individuals.
Additional services such as the flexible use of
pre-owned vehicles at a fixed monthly package
price were piloted in the reporting year.
PORSCHE PASSPORT
Porsche Passport offers
an extremely flexible
vehicle subscription.
Using an app, customers
can switch vehicles
flexibly to meet their
needs, with a selection
of up to 20 different
models.
150
"Porsche Passport" offers an extremely flexible
vehicle subscription. Following its debut
M. 650
Porsche and Boeing signed a memorandum
of understanding to explore the premium
urban air mobility (UAM) market. This partner-
ship will see both companies leverage their
unique market strengths and insights to study
the future of premium urban air mobility
vehicles. As part of the collaboration, an inter-
national team is dealing with various aspects
of urban air mobility, including analysing
the market potential for premium products
and determining possible areas of application.
Boeing, Porsche and Aurora Flight Sciences,
a subsidiary of Boeing, are also developing
a concept for a fully electric vertical take-off
companies, as well as the Porsche subsidiaries
Porsche Engineering Services GmbH and
Studio F.A. Porsche, will implement and test
a prototype.
Porsche Heritage Design strategy
In 2019, Porsche Exclusive Manufaktur began
working together with the Style Porsche de-
sign department on an extraordinary concept.
Within the framework of the Heritage Design
strategy, the partners reinterpret exclusive
911 models featuring iconographic elements
from Porsche cars dating from the 1950s
through to the 1980s. Equipped with cut-
ting-edge sports car technology, these special
models introduce the lifestyle dimension -
boasting particularly emotive concepts and
references to history within Porsche's product
strategy. Last year, the 911 Speedster with
Heritage Design package offered an initial
outlook. Additional special models are to fol-
low at certain intervals and in limited numbers.
Selected elements from the corresponding
decades will also be available as options for
911 models as part of Heritage Design
packages. The Heritage Design models take
the brand values into the future and comple-
ment today's hybrid and electric vehicles,
where the main focus is on technical innov-
ations. At the same time, the project brings
back iconic looks from various epochs that
Cooperation with Boeing
range of needs of its customers with the fitting
offer, the company develops various new
mobility concepts.
Porsche pursues the vision of being the most
successful brand for sporting and exclusive
mobility. In order to account for the diverse
Expansion of mobility services
Porsche has experienced increasing interest
from dealers around the world in these new
retail formats. Sales pop-ups and studios are a
modern possibility for reaching out to existing
customers and for quickly introducing new
target groups to the brand in attractive and
market-specific ways - and ultimately to make
contact with these new target groups. This also
leads to the opening of new markets. The com-
pany makes the fundamental concept available,
and the dealers implement it in their markets
with a targeted thematic focus. This ensures a
high degree of relevance for the brand with the
respective target groups while also ensuring
brand recognition.
"SCOPES" IN BERLIN
PEC HHR SPORTSCAR TOGETHER DAY
New Porsche Experience Centre
Porsche opened its seventh "Porsche
Experience Centre" (PEC) worldwide at the
Hockenheimring as part of a "Sportscar
Together Day" in mid October 2019. Covering
an area of around 170,000 square metres,
the premises at the heart of the racetrack is a
new hub for customers and fans from all over
Europe. It includes a Customer Experience
Centre, handling course, driving dynamics
areas and an off-road track. The festivities of
the opening weekend attracted around
70,000 visitors, 9,000 of whom arrived in
their own Porsche cars. The eighth Porsche
Experience Centre is being built alongside
the racetrack in Franciacorta, Italy. Porsche
Italia began renovating the circuit and building
the customer centre in 2019. The opening
is planned for early 2021.
PORSCHE STUDIO TAOYUAN
145
With "SCOPES driven by
Porsche", the sports
car manufacturer has
created a live-event
format for young, urban
target groups in metrop-
olises around the world.
SCOPES as an urban event format
A place for encounters, knowledge and per-
sonal interaction: with "SCOPES driven
by Porsche", the sports car manufacturer has
created a live-event format for young, urban
target groups in metropolises around the
world. Following Berlin in 2018 and Amster-
dam, the Netherlands, in May 2019, the format
also launched in Tokyo, Japan, in November
2019. "SCOPES driven by Porsche" stands for
a pioneering spirit, innovative design and the
coming together of a creative community.
Over a period of more than two weeks, Porsche
presents itself at an extraordinary location that
represents the culture of the respective city.
In doing so, the sports car brand acts as a
curator: young, creative companies and part-
ners put on exhibitions, panels, debates and
workshops and present themselves through
art, technology, live music or fashion. The
mixture and the direction are determined in
the respective cities by the characteristics
of the people who design the content. Also
included are brand-typical topics such as
innovation and design that are organised by
Porsche experts.
NEW PORSCHE EXPERIENCE CENTRE, HOCKENHEIMRING
Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
146
shaped Porsche vehicles.
In Taiwan, Porsche NOW is used as a rolling con-
cept at multiple locations, the first of which is
the Xinyi district in Taipei since October 2019.
"Porsche NOW" will be there for a limited time at
a well-known shopping centre and stands out
with its modern and cosy atmosphere. In
addition to the exhibited cars, visitors there are
able to experience virtual-reality applications
and the private configuration lounge. After Taipei,
the sales pop-up will make a two-year journey
around to the other major cities of Taiwan.
The focus is on special colours and materials
that, in addition to special paintwork and foil
graphics, shape the appearance of the special
models. For this, the designers sought inspir-
ation from the old colour and equipment cards,
museum cars and design elements from
various other decades. The textile materials in
the interior play a significant role. Key stylistic
elements cord velvet and patterns like
houndstooth, pasha or tartan, for example -
are redesigned with modern materials for the
special models as well as thoroughly tested
and produced.
CURRENT PORSCHE MODEL RANGE
The core challenge in the reporting year was
the commissioning of the new factory for the
Taycan during regular production. This was
opened as scheduled on 9 September 2019,
which meant that fewer than 48 months
separated the presentation of the Mission E
concept car in September 2015, the world
premiere of the Taycan production model in
early September 2019 and the start of series
production a few days afterwards.
In 2019, Porsche once
again increased produc-
tion, with a total of
274,463 vehicles made.
One core challenge
was the commissioning
of the new factory for
the Taycan.
045
MATRIMONY IN TAYCAN ASSEMBLY: ELECTRIC DRIVE AND BODY ARE JOINED TOGETHER
149
Production volume
Vehicles
The company's main plant in Zuffenhausen
produced around 250 cars every day - more
than ever before. A sophisticated control
and production principle enables the assem-
bly of all two-door sports cars - including
the 911, 718 Boxster and 718 Cayman model
series - on a single production line. This
highly flexible system ensures that many
individual customer requests can be realised
within the scope of series production.
274,463*
255,683
250
239,618
234,497
200
150
268,691
PRODUCTION IN ZUFFENHAUSEN
911 Carrera 4S, 911 Carrera, Carrera S, 911
Speedster, 911 GT2 RS Clubsport, 718 Spyder,
718 Cayman GT4, 718 Cayman GT4 Club-
sport, Cayenne Coupé, Macan Turbo and
Macan GTS.
In 2019, Porsche successfully managed
numerous production runs for new models:
Taycan, 911 Cabriolet, 911 Carrera S,
147
PORSCHE HERITAGE DESIGN STRATEGY
Sales, Production, Procurement
Schottenka
Tartan
Tous
Sta
Schote
Thi Shound, c'est-4-dire af
res (haut des portes
vert 
clair et jaune 
nou
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
148
PRODUCTION
In financial year 2019, Porsche produced
a total of 274,463 vehicles, representing an
increase of roughly three per cent over the
previous year.
A total of 53,719 sports cars from the 911
(37,585 units), 718 Boxster (9,642 units)
and 718 Cayman (9,621 units) model ranges
were manufactured in Zuffenhausen, as well
as 1,386 units from the Taycan range. In add-
ition, a further 3,129 units of the 718 Cayman
were produced at the Volkswagen facility
in Osnabrück.
At the Leipzig production site, a total of
120.936 vehicles of the Macan (89,744 units)
and Panamera (31,192 units) model ranges
were built. A total of 95,293 units of the
Cayenne were also produced at the Bratislava
multi-brand site (Slovakia).
The Heritage Design
models take the brand
values into the future.
At the same time,
the project brings back
iconic looks from various
epochs that shaped
Porsche vehicles.
100
With its temporary nature, the Porsche sales
pop-up is another of the new sales formats
through which the Porsche offer is brought
closer to the urban lifestyle of customers and
new target groups. A total of five locations.
were opened in 2019 under the core concept
of "Porsche NOW" and "NOW" is a call to
seize the moment.
Sales pop-ups and
studios are a modern
possibility for reaching
out to existing cus-
tomers and for quickly
introducing new target
groups to the brand in
attractive and market-
specific ways.
911 GT3 RS
TAYCAN 4S
In Germany, more than
100,000 readers of auto
motor und sport voted
the 911 and Panamera
model ranges into
the top spot of the "Best
Cars of 2019" in three
categories.
S.TA 5
911 CARRERA CABRIOLET
The all-electric Taycan also won awards in
the year of its debut, having been crowned the
"best premium electric car" in 2019 by the
British motorsport magazine Autocar. Porsche
also took a top spot with the 718 Boxster in
the ranking of the "top 10 best convertibles
and cabriolets". The Porsche 911 GT3 man-
aged to secure the number-one spot in the
ranking for the "top 10 best hardcore cars in
2019". The category for "sports car of the year"
was topped by the 911 Carrera in 2019. In
the category of the "top 10 best grand tourers
of 2019", the Panamera left all other cars in
the dust.
In Germany, more than 100,000 readers of
auto motor und sport voted the 911 and
Panamera model ranges into the top spot of the
"Best Cars of 2019" in three categories. The 911
was victorious in the category for "sports cars"
as in the previous year, and the 911 Cabrio and
911 Targa also won in the category for "converti-
bles". The Panamera once again was honoured
at the top of the "luxury-class" category.
Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
142
Taycan preparation in the retail organisation
Professional service and maintenance for
customer vehicles is one of the core services
provided by Porsche. With its first plug-in
hybrid in 2013, the retail organisation laid the
foundation for electromobility. However, the
launch of the first all-electric Porsche was one
of the greatest challenges of recent years.
The intense preparation efforts of Porsche and
its dealers included, for example, the develop-
ment of fast-charging infrastructure with
800-volt technology that was set up at many
Porsche Centres in 54 markets. At the same
time, this makes a significant contribution
to the expansion of the public charging infra-
structure. The objective is to install some
1,000 charging points by the end of 2020.
Each dealer will invest more than a quarter of
a million euros by the end of 2020 in the
expansion of the charging infrastructure as
well as hardware.
More than 30,000 employees from Sales and
Aftersales care for customers around the
world. To account for the high degree of exper-
tise in the field of electromobility required,
they received comprehensive knowledge via
in-person training sessions and online courses
as part of a broad scope qualification initiative.
The main topics included dealing with char-
ging installations for electric vehicles as well
as digital services and additional vehicle func-
tions as part of Porsche Smart Mobility. In
2019, some 140 employees became qualified
high-voltage experts and underwent succes-
sive preparation for their new tasks in the
workshops. In consideration of the increasing
complexity of advice due to electromobility,
smart mobility and digitalisation, Porsche
defined 12 new job roles in retail.
Sustainable energy generation
Porsche is already using photovoltaics at many
locations to produce electricity from solar
radiation. The Shams Dubai Initiative is one
example of how renewable sources of energy
can also be used to charge electric vehicles.
Together with the company TerraStruc, Porsche
Middle East and Africa (PME) constructed
a photovoltaic installation for its headquarters
in Dubai. Each year, it can produce up to
478,500 kWh of electricity, thereby covering
some 60 per cent of PME's energy needs, and
the charging stations for electric vehicles are
also connected.
The Porsche 911 was the overall winner of the
Autobild TÜV-Report 2019, a publication
that is considered one of the most important
sources of advice for drivers and pre-owned-
vehicle buyers. In the current ranking of the
technical inspection association, Porsche
secured the top spot with the lowest rate of
severe defaults in all vehicle age groups. The
911 made it to the top position for the first
time in all vehicle age groups.
Porsche was also ranked number one by news
magazine U.S. News & World Report, with the
718 Boxster in the categories of "Luxury Sports
Car" and "Luxury Convertibles". The magazine
evaluates vehicles and brands based on data
from studies and expert analyses from the
automotive industry.
in this regard: the sports car brand took first
place in the "Sales Satisfaction Index" (SSI),
which is also determined each year by J.D.
Power in the United States. The "SSI" assesses
the level of satisfaction of new-vehicle pur-
chasers with their purchase. Representative
surveys of new-vehicle owners serve as the
basis, in which purchasers and those who
chose not to make a purchase share their
experiences with dealers. Porsche also took
top brand honours in this year's "Customer
Satisfaction Index" (CSI) of J.D. Power in the
category of aftersales.
In the "Automotive Performance, Execution
and Layout Study" (APEAL) of the renowned
US market research company J.D. Power,
Porsche took the top spot in the overall evalu-
ation. The study determines the attractiveness
of vehicles on the US market and conducts
surveys once a year of people who purchased
new vehicles. Porsche managed several wins
6
SALES
High levels of customer satisfaction
A focus on customers and customer satisfac-
tion are significant requirements of sustainable
growth, which makes them an integral part of
the Porsche Strategy 2025 Plus. To this end, the
company regularly surveys more than 250,000
customers regarding their satisfaction. Addi-
tionally, independent third-party studies also
offer analysis - carried out, for example, by
market research institutes that assess Porsche
also compared with its competitors. A team
from the Sales, Aftersales, Marketing, Customer
Relations and Product Quality departments
evaluates all results. If necessary, the steering
committee for customer satisfaction - which
also includes the Executive Board - takes
measures aimed at improving quality. Porsche
continuously communicates to all employees
the importance of customer satisfaction, for
instance as part of days dedicated to the topic.
718 BOXSTER
PANAMERA 4S EXECUTIVE
MACAN GTS
141
SHXX 718
In the "Automotive
Performance, Execution
and Layout Study"
(APEAL) of J.D. Power,
Porsche took the top
spot in the overall
evaluation.
Recognition and awards
Porsche customers are extremely satisfied -
this is regularly confirmed by numerous tech-
nical magazines and independent studies
from the United States, the United Kingdom
and Germany, and it also demonstrates the
success of the optimisation programme for
customer service. In 2019, the well-known US
advice magazine Kelley Blue Book bestowed
several awards upon the sports car brand, with
Porsche claiming not only the "Brand Image
Award for Best Performance Luxury Brand", but
also the awards for "Best Resale Value for a
Luxury Brand" and "Best Car Styling for a Luxury
Brand". In addition, the company also managed
to crack the "10 Most Awarded Brands".
The Macan and Panamera models also received
awards in their respective categories for
the best resale value as well. The Porsche
718 Boxster and the 718 Cayman were named
among the 10 best vehicles in a reader survey
conducted by the US magazine Car and Driver,
with the 718, 911, Macan and Cayenne model
series also receiving "Editor's Choice" awards.
In 2019, Popular Mechanics - a US magazine
for science and technology - recognised the
Porsche 911 with the "Automotive Excellence
Award" in the "Redesign of the Year" category.
The US automotive magazine Motorweek
named the Panamera the "Best Dream Machine".
IONITY
Sales pop-up: Porsche NOW
PUBLIC CHARGING VIA THE JOINT VENTURE IONITY
Porsche offers its customers ideal solutions
for charging their sports car with hybrid or
all-electric drive. Analyses show that around
80 per cent of charging takes place at home.
Porsche offers several intelligent charging
solutions for this purpose. All Taycan models
are delivered with Mobile Charger Connect
as standard, with a charging power of up to
11 kW (or 9.6 kW for the United States). To
this end, the Porsche Charging Dock is availa-
ble upon request to be installed on the wall
or on an existing charging station, and the
Porsche compact charging station is available
for free-standing installation. As an option,
Porsche also offers the Home Energy Manager,
which optimises charging with regard to
output, time and costs. In particular, it controls
and manages the charging performance in
such a way that the home grid is not over-
loaded during charging. The Porsche partners
and/or the cooperating service workshops
analyse the individual customer circumstances
and offer advice on the right equipment.
ONLINE CAR SALES
143
Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
144
New Porsche Studios in Asia
Customers can perform the most important
steps for car purchase and leasing online -
whenever and wherever. Only customer
authentication and the final conclusion of the
contract will still initially take place at the
Porsche Centre. The final conclusion of the
contract at the dealer can then be taken care
of much more quickly and simply.
The company continued expanding its global
network of Porsche Studios in 2019, opening
the Porsche Studio Bangkok in Thailand in
March 2019. It offers customers and fans of
the brand new possibilities to interact with
Porsche and invites visitors to stay for a while
with its atmosphere that has the feel of a
boutique. The Porsche Studio Cheongdam
followed in June, which is located directly in
the vibrant Gangnam district of Seoul, South
Korea, and stands out with its futuristic
showroom concept. The Porsche Studio unites
tradition and innovation, and invites Porsche
customers as well as fans to experience
Porsche Studio Taoyuan in December - the
fifth Porsche Studio in Asia - located in
the Taoyuan Art Plaza, an art district of
the metropolis.
The new Porsche Studios take advantage of
different digital elements and large screens to
address customers. In a relaxing atmosphere,
fans of the brand can dive into the world
of "E-Performance", for example. Visitors can
customise cars in the "Porsche Exclusive
Manufaktur" and they can learn a lot about the
history of Porsche across more than seven
decades on the "Heritage Wall". Additionally, the
locations can be used to host events geared
towards specific target groups. The Porsche
Studios are an important pillar of the "Future
Retail" strategy with their presence at the
centre of vibrant cities in order to reach new
target groups.
PORSCHE SALES POP-UP IN TAIPEI
the brand in a whole new way. Then came the
Nowadays, it is a matter of course that cus-
tomers navigate between the digital world and
the world of physical retail. In October 2019,
Porsche teamed up with the 88 German
Porsche Centres to open a new digital sales
channel as a virtual marketplace for immedi-
ately available new and pre-owned cars. It will
also include additional Porsche products and
services in the future, with the launch in
Germany being followed by Europe-wide roll-
out in 2020.
PORSCHE
Online car sales
In the public sector, electric cars in Europe can
already use the Porsche Charging Service at
more than 100,000 public charging stations,
with more being added on an ongoing basis.
The offer also includes fast-charging stations
with an output of up to 350 kW from IONITY,
the joint venture of the car manufacturers of
the BMW Group, Daimler AG, Ford Motor Com-
pany and the Volkswagen Group with Porsche
and Audi. Some 400 fast-charging stations
are expected to be operational by the end of
2020. Using the Porsche Charging Service
app, Taycan drivers can charge their vehicles
at a particularly low price. In the United States
and Canada, customers can use the fast-
CHARGING OFFERS FOR AT HOME
charging networks of Electrify America and
Electrify Canada.
An additional option is Porsche Destination
Charging, which offers charging solutions at
numerous selected premium locations such as
hotels, golf courses and restaurants. This
service is free of charge for Porsche custom-
ers. Expansion is scheduled to increase the
worldwide charging stations to 1,800 by the
end of 2020.
Global sales network
The year 2019 marked the beginning of the
transformation of the "corporate architecture"
of the Porsche Centres around the world -
from the well-known appearance of the
past 20 years to the advanced concept of
"Destination Porsche". This concept is the
sports car manufacturer's response to the
challenges that arise from future expectations
of customers and the constantly changing
competitive environment. Vehicles are pre-
sented in an expanded thematic environment
with flexible hospitality and experience offers.
A prototype of this approach was ceremoni-
ously inaugurated in March 2019 in Palm
Springs, California (USA), followed by the
world's first conversion of a Porsche Centre in
Hangzhou, China, in December 2019. The next
step involves the first new-build pilot project
in Dortmund, Germany, which will be complet-
ed by the end of 2020.
"Destination Porsche" goes far beyond pure
architecture: physical space is united with the
digital world. This results in new IT processes
and job roles, which ends in a seamless experi-
ence for the customer. All visitors are offered
individual opportunities to be a part of the
brand from prospective buyers to existing
customers. The Porsche Centre becomes a
place of inspiration, communication, experi-
ences and participation.
The development expands upon the tried-and-
tested architecture of today, which means that
the changes can be implemented effectively -
both for new builds as well as when transform-
ing the existing dealer network of 850 Porsche
Centres around the world over the coming
decade. In addition to the Porsche Centre as
the primary format, other sales and contact
points will be added in the future that make
the brand more and more an experience.
PORSCHEPLATZ AT THE PALM SPRINGS PROTOTYPE
"DESTINATION PORSCHE" PROTOTYPE IN PALM SPRINGS
"Destination Porsche"
goes far beyond pure
architecture: physical
space is united with the
digital world. This results
in new IT processes
and job roles, which ends
in a seamless experience
for the customer.
Charging offers for electric cars
50
1773134
0
13
8,624
20
6,928
18
3,829
4,929
9
10
Equity-accounted investments
298
1
368
1
3,776
12
5,085
in %
and meet the sustainability requirements of
Porsche. The "sustainability rating" is under-
going a step-by-step roll-out across all brands
and regions. Suppliers must first complete a
self-disclosure process addressing defined
sustainability criteria and featuring a stand-
ardised questionnaire that is well established
in the automotive industry. If the results of the
self-disclosure are unsatisfactory, an on-site
check of the production site ensues, which is
carried out by an independent sustainability
auditor. Should the audit result in sustain-
ability risks being observed, this results in a
negative assessment of the supplier and to the
exclusion for future awards. The supplier can
improve its sustainability performance at any
time in order to fulfil the sustainability require-
ments and to qualify for future nominations.
Supply chain transparency
Together with suppliers, the Procurement
department continuously analyses selected
supply chains all the way back to the origin of
the raw materials to identify all intermediary
suppliers involved as well as to detect human
rights risks and take measures accordingly.
To this end, a number of workshops were held
with tier 1 suppliers in 2019, with efforts fo-
cused on pinpointing the key sources of emis-
sions and potential areas for reducing CO2
emissions along the supply chain as well as the
creation of transparency in the entire value
chain. The participants worked together to de-
fine objectives, road maps and measures that
would lead to improvements with regard to
sustainability, as well as establish mechanisms
to monitor the progress.
For the first time, blockchain technology was
used to conduct a pilot project for identifying
potential sustainability risks within the supply
chains. This technology enables transparency
to be increased along the entire value chain.
The digital technology was tested using the
example of leather cockpit parts, with the
pilot project comprising the origin and pro-
cessing of the natural leather product through
to Porsche's own saddlery. This enabled
comprehensive transparency to be generated
regarding the value-creation partners involved
and the potential supply chain risks. Following
the successful conclusion of the pilot project,
the procedure is set to undergo an initial
practical test in collaboration with selected
partners.
Risk management
Given the technological change within the
automotive industry as well as the increasing
complexity and highly dynamic nature of all
processes, it is necessary to make adjustments
to risk management. This is a significant
challenge for small and medium-sized compa-
nies in particular. Together with suppliers,
the flexibility of the supply chain needs to be
increased in order to address the increasingly
dynamic nature. Additionally, the robustness
of all partners must be ensured in order to take
on the changes taking place in the sector.
So-called supply chain risk management
is implemented by Procurement in all supply
chains with the goal of ensuring a reliable
supply of production and non-production
materials, as over two-thirds of value creation
takes place at external partners.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
156
Financial analysis
Net assets
Financial position
Results of operations
Dec. 31, 2019
in % Dec. 31, 2018
Other equity investments
146
0
98
27,008
71
4,013
10
3,889
10
842
2
759
2
842
3
730
50
2
70
SALES TEAM PUTS LEATHER TO THE TEST
29,707
730
0
Financial services receivables
1,841
5
5
8,350
20
8,398
22
179
0
125
0
1,355
3
2
Sales, Production, Procurement
1,656
These successful innovation tools from the
Procurement department will be further
expanded in the future. Its focus for the year
2020 will be on scouting new partners. In
this way, Procurement will be able to establish
further suitable collaborations and help a
wide variety of innovations find their way
to Porsche.
PRODUCTION IN LEIPZIG
Porsche's Leipzig factory continues to record
positive growth, and in 2019 the company
set an important course for the future of this
site in Saxony and the production of new
models. Over 600 million euros are being in-
vested in the ongoing expansion of this facility,
with the foundation stone for a new body
shop boasting a total area of 75,500 square
metres having been laid on 12 March 2019.
This new factory extension gave Porsche the
opportunity to produce all-electric cars on
the existing production line alongside petrol
and hybrid models, starting with the next
generation of the Macan. As a fully electric car
based on Premium Platform Electric (PPE)
architecture, the new Macan is set to be
produced in Leipzig from the early 2020s.
Leipzig to produce axles for electric cars
In April 2019, Porsche Leipzig GmbH decided
in favour of integrated axle assembly at its
facility in Saxony for the production of the
upcoming all-electric Macan. The factory had
previously outsourced this work step to a
system supplier that continues to assist with
the current Panamera and Macan models.
The in-house manufacturing of axles for elec-
tric cars will make on-site production even
more flexible and efficient. On top of this,
Porsche Leipzig will also create over 100 high-
skilled jobs.
Sales, Production, Procurement
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193-194.
152
This factory within a factory was constructed
in the middle of a city, within a very small
area and at a blistering pace. One of the key
logistical feats involved coordinating the
construction site traffic so as not to impede
the ongoing production of the two-door
sports cars. Another decisive factor behind
the smooth implementation of the project
was the intensive open dialogue with author-
ities and neighbours, who were kept informed
at all times throughout the entire project.
STEPS TOWARDS THE ZERO-IMPACT
FACTORY
Porsche has signed up to the climate goals
agreed in Paris in December 2015 and takes
responsibility for reducing environmentally
harmful emissions. As its aims extend far
beyond mere decarbonisation, the vision of the
zero-impact factory includes 12 action areas:
environmental management and organisation,
technology and processes, perception of the
factory, efficient water use, planning, energy
efficiency and climate protection, resource and
material efficiency, pollutants, soil, logistics,
biodiversity and operational disruptions.
Since 2017, the company has exclusively used
electricity from renewable energy sources.
The new factory for the Taycan in Zuffenhausen
also used certified biogas as an energy source
for heat and power. The highly efficient com-
bined heat and power plant (CHP) plants next
to the production and office buildings provide
heat and a portion of the electrical energy,
thereby expanding the environmentally friendly
energy mix at the site. They boast an overall
efficiency of more than 83 per cent and are
most effective when operated in the vicinity of
a constant heat demand such as at a paint
shop, where the immersion baths and drying
areas require a continuous supply of process
heat. Around 90 per cent of the generated heat
is intended for supplying heat and hot water
to the production and office buildings. These
new CHP plants are operated exclusively using
certified biogas drawn from organic waste
and residue. In the future, Porsche will also use
biogas generated from waste by the city of
Stuttgart.
The new energy-efficient buildings go far
beyond the minimum statutory requirements,
requiring 15 per cent less energy on average
than the previous construction standard.
The use of waste heat in the paint shop also
helps save even more energy.
Porsche has hugely expanded the scope of
several sustainability requirements issued
by the city of Stuttgart. For example, the
material from the demolished former halls was
immediately processed on-site and reused
for the new buildings.
As the new factory is located at the northern
edge of Stuttgart's dense city centre, the
building height is limited to 38 metres in order
to ensure that fresh air from the north can still
reach the heart of the city. The construction
trench therefore extended 25 metres under-
ground, with 240,000 cubic metres of earth
being moved to make way for the multistorey
assembly building.
The green roofs on all the new buildings cover
some 42,000 square metres, ensuring a lower
degree of sealing than at the former industrial
facility. Measuring 900 metres, the longest
green roof is located on top of the new trans-
port bridge that connects the paint shop in
the west to the assembly building in the east.
Porsche's factory of the future concept con-
tains a variety of measures at all sites for
achieving the goal of the zero-impact factory
- namely, production without any negative im-
pact on the environment. The new production
facilities at the Zuffenhausen plant represent
a particularly decisive step in this direction,
hosting the carbon-neutral production of
the Taycan and helping Porsche set new stand-
ards in terms of ecological sustainability. For
example, Porsche has reduced CO2 emissions
at the production sites by 75 per cent per
car produced since 2014. Additionally, the
sports car manufacturer lowered the energy
and water consumption in its facilities by
20 per cent per car produced. It also slashed
its use of solvents by a third during this period.
In addition, the increasing use of electric
logistics vehicles and rail transport powered by
green electricity helps reduce CO2 emissions
in logistics.
the assembly of the gearbox and axles: these
combine to form the drive units for the
all-electric four-door all-wheel drive sports
car. The building also features efficient
logistics with modern storage technology.
Driverless transport systems are additionally
used for automated material provision.
CATHODIC DIP COATING IN THE NEW PAINT SHOP
QUALITY ASSURANCE IN THE TAYCAN BODY SHOP
2015
"Sustainability rating" for suppliers
Since 1 July 2019, the Volkswagen Group has
used a sustainability rating for suppliers (of
production and non-production materials) as
a binding award criterion in the procurement
process. In addition to the existing ratings for
quality, development and logistics, the evalu-
ation now extends to aspects of sustainability
such as the attitude of business partners with
regard to risks involving human rights, envir-
onmental protection, ethics and corruption.
Orders will only be awarded to, and work will
only be done with, suppliers who act sustainably
2016
2017 2018
2019
*Production figures from 2019 without pre-production vehicles;
including pre-production vehicles until 2018.
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 193-194.
Sales, Production, Procurement
150
A factory of the future
Zuffenhausen represents the brand's heart
and soul, with the new factory located there
acknowledging Porsche's history while
clearly pointing to the future. Over 700 million
of the six billion euros that Porsche is set to
invest in electromobility by 2022 have been
dedicated to the construction of the new
production facilities. If the body shop that
entered into service with the launch of
the eighth-generation 911 is also included,
this figure rose to around one billion euros.
The Taycan is being assembled in a so-called
factory of the future - flexible, networked and
with pioneering production technology. The
company describes this as Porsche Production
4.0, featuring the comprehensive and inter-
linked implementation of smart, lean and
green aspects through modern production
methods. In addition to transparency and
networking (smart), Porsche Production 4.0 is
characterised by its responsible and efficient
use of resources (lean) as well as by eco-
logical factors (green). People remain at the
heart of production, with modern technologies
lightening their load and supporting them
in their work.
This building project comprised a number of
large individual projects: a new body shop,
a new paint shop, a factory extension for the
production of electric motors and components,
a new car assembly area and the approximately
900-metre-long conveyor technology that
connects the paint shop to the final assembly.
The new buildings feature a gross floor area of
170,000 square metres, making this the
largest construction project since the Zuffen-
hausen plant was first established.
The rigid yet lightweight material-mix bodies
with 100 per cent aluminium exterior are
produced in the 30-metre-high body shop.
From there, they are delivered to the paint
shop, for which the company took an exem-
plary approach to environmental protection
and energy efficiency when planning the
building. For example, the body driers are
heated via direct heating in the individual pro-
cess steps, and the exhaust air from the
driers is cleaned together with the exhaust air
from the paint booths. The top floor houses
automated process areas such as the immer-
sion baths for cathodic dip coating and the
paint booths. Manual workstations are located
on the ground floor, and the accessible layout
promotes communication and interaction
among colleagues.
Instead of a traditional fixed production line,
the assembly process for the Taycan features
a flexi-line with driverless transport systems
that move independently from station to
station. As specific driverless transport sys-
tems can be flexibly removed from and
returned to the production line, this delivers
numerous benefits such as easier implemen-
tation of individual customer requests.
Boasting 62,000 square metres of production,
logistics, testing and employee recreation
areas spread across four storeys, the building
complex in Zuffenhausen measures 38 metres
from foundations to roof.
The new electric motor and component
production areas, which house Porsche's
first-ever series production of electric drives,
are located in the immediate vicinity of
the traditional engine factory where all of the
Volkswagen Group's V8 combustion engines
are manufactured. This new facility handles
the production of the electric motors plus
D10
013
151
Back in 2017, the German Sustainable Build-
Model start-ups
The Procurement department focused its
efforts on a number of production start-ups
throughout the reporting year, with the
Taycan an obvious priority. Not only was
production of the new 911 ramped up, but
the 911 Cabriolet was added to the 911 Coupé,
the 911 Carrera and Carrera 4 were added
to the 911 Carrera S and 911 Carrera 4S.
The 911 Speedster, 911 GT2 RS Clubsport,
718 Spyder, 718 Cayman GT4 and
718 Cayman GT4 Clubsport also made their
production debuts. The Cayenne Coupé,
Macan Turbo and Macan GTS all enjoyed suc-
cessful start-ups. Procurement also purchased
a multitude of parts for all products and
worked hand in hand with Development,
Quality Assurance, Production and suppliers
to ready the cars for series production.
The Taycan, which represented Porsche's entry
into the all-electric field, played a key role in
the reporting year. Series production began in
September 2019 at a dedicated new factory.
The new technologies and processes that
are integral to electromobility have taken the
company in entirely new directions in a number
of areas. For the production of the Taycan,
Porsche works with 350 suppliers from a
number of different countries, who deliver over
15,000 purchased parts in total. Among the
trailblazing innovations are 800 V technology,
battery capacity of up to 93.4 kWh and elec-
tric drives featuring permanent synchronous
motors and dual-clutch gearboxes. For
Porsche, ensuring effective cooperation with
all partners and identifying suitable new part-
ners who share its commitment to sustainable
operations is key to fostering innovations,
introducing these to series production and
further enhancing them.
Porsche Strategy 2025 Plus
In 2019, Procurement also took the opportu-
nity to realign its strategy and build on the
existing Porsche Strategy 2025. This includes
new goals that have been collectively crafted
by the departmental management. Procure-
ment's strategy focuses on five areas: software
as a product, flexible organisation, shaping
products and services, operational excellence,
and culture and expertise. It is also aimed at
intensifying cooperation between the different
departments and brands. Employees were
selected for the new strategy teams at a series
of pitch days: over 70 candidates were invited
to deliver a three-minute pitch, with the top
20 making the cut.
In 2019, Porsche once
again increased the
number of new cars
delivered to a total of
more than 280,800
vehicles. The Procure-
ment department made
an important contribu-
tion to this success: on
the basis of close
partnership with indus-
try suppliers, it ensured
the reliable supply of
high-quality compo-
nents for the long term.
718 CAYMAN GT4
Innovation Management
In response to changing framework conditions
in the automotive industry and ever-shorten-
ing innovation cycles, Innovation Management
has refreshed the concepts behind its various
tools and processes over the last few years so
as to remain a preferred partner for start-ups
and suppliers.
Here are the tools at a glance:
- At each of the Porsche Supplier Tech Days,
one of the company's suppliers presents
its innovative portfolio and selected pre-
development projects.
-The Porsche Supplier Innovation Day pro-
vides the framework for integrating ground-
breaking concepts from suppliers into the
company's operations at an early stage. In
this way, suppliers can submit and pitch new
concepts and innovative ideas relating to a
specific topic.
Platinum award from the German Sustainable
Building Council
- Under the stewardship of the Procurement
department, Innovation Management
successfully conducted two Open Innovation
formats within the scope of the digital
developer competition "Porsche NEXT OI".
"NEXT OI" is an innovation platform that is
available 24/7 to start-ups and suppliers
around the world for the purpose of
developing digital applications. Similar "Open
Innovation" formats are also being promoted
for production-related aspects such as
driverless transport systems.
-The "Start-up Autobahn" format enables
fast, collaborative testing of new technolo-
gies with fresh-faced companies in the
automotive sector. Since late 2019, Innova-
tion Management in this format has led
these efforts together with additional partners.
155
In 2019, Porsche's material outlay amounted
to 4,345 million euros (financial year 2018:
4,201 million euros). Procurement also
played a decisive role in helping the company
meet its objectives in terms of services and
non-production material. The total invest-
ment volume in the reporting year amounted
to 1,992 million euros. The increase on
2018 (1,858 million euros) was due primarily
to large infrastructure projects, which
additionally reflects Porsche's policy of con-
tinued and sustainable growth to ensure
the future competitiveness of the company.
D11
Procurement of production material and
non-production material
Porsche's factory of the
future concept contains
Procurement continuously optimised the
material cost per car throughout the report-
ing year, with Porsche involving its strategic
partners in the process at an early stage as
part of their trust-based collaboration.
This approach made it possible to achieve
improvements.
a variety of measures at
all sites for achieving the
goal of the zero-impact
factory - namely,
production without any
negative impact on the
environment. The new
factory in Zuffenhausen
represents a decisive
step in this direction: it
hosts the carbon-neutral
production of the
Taycan.
PORSCHE PRODUCTION 4.0: DRIVERLESS TRANSPORT SYSTEMS IN TAYCAN ASSEMBLY
A GLIMPSE OF THE TAYCAN ASSEMBLY PROCESS
Sales, Production, Procurement
153
of the electrical energy,
thereby expanding the
environmentally friendly
energy mix at the site.
They boast an overall
efficiency of more than
83 per cent.
GENERATOR IN CHP PLANT
154
PROCUREMENT
In 2019, Porsche had another successful
financial year. A total of 280,800 cars were
delivered by the company, representing an
increase of 10 per cent on the previous year.
The Procurement department made a sig-
nificant contribution to this success, working
in very close partnership with suppliers to
ensure a reliable supply of high-quality com-
ponents for the long term. Alongside multiple
model start-ups, the production launch of
the Taycan was a key challenge in the report-
ing year. After all, this first all-electric sports
car from Porsche represented uncharted
territory for the company in a number of
respects. Procurement also explored a num-
ber of options for optimising value chains,
intensifying its networking efforts with
suppliers and identifying new partners.
The changing framework conditions in the
automotive industry, the pressure to inno-
vate and the ever-shortening development
cycles have triggered a new understanding
of roles within Procurement. In keeping
with the corporate strategy, the sports car
manufacturer is constantly on the lookout
for new inspirations and solutions. These are
then developed at an early stage in tandem
with suppliers, start-ups and partners. The
Porsche Procurement department takes
Group-wide proactive approach to inno-
vation management encompassing all the
brands. The company engages in close
cooperation with its strategic stakeholders
to ensure early detection of trends and
developments.
ing Council (DGNB) bestowed its platinum
certificate the highest possible - on the new
engine plant in Zuffenhausen. This prestigious
honour, which is reserved for particularly sus-
tainable industrial sites, was subsequently
granted to the 427-hectare Leipzig factory in
2019. The evaluation process featured 167
criteria in 28 categories: in addition to envir-
onmental protection, biodiversity and energy
life cycle assessments, the DGNB also consid-
ered the handling of resources, the design of
the site, the impact on urban climate and in-
frastructure, ecological construction monitor-
ing, life cycle costs and value stability, and the
corresponding planning and processes. The
DGNB was particularly impressed by aspects
such as the energy management life cycle as-
sessment and the site's capacity for change.
The highly efficient
combined heat and
power plant plants next
to the production and
office buildings provide
heat and a portion
Transferred to profit or loss (OCI I)
-283
-397
-76
Fair value changes recognized in other comprehensive income (OCI I)
68
92
Exchange differences on translating foreign operations, net of tax
Hedging
-0
68
92
Exchange differences on translating foreign operations, before tax
-458
0
Transferred to profit or loss
68
92
Unrealized currency translation gains/losses
Foreign exchange differences
Deferred taxes relating to exchange differences on translating foreign operations
Cash flow hedges (OCI I), before tax
Transferred to profit or loss (OCI II)
-741
34
-196
83
143
-480
-279
184
401
-680
Fair value changes recognized in other comprehensive income (OCI II)
-518
-332
Cash flow hedges (OCI II), net of tax
Deferred taxes relating to cash flow hedges (OCI II)
Cash flow hedges (OCI II), before tax
Cash flow hedges (OCI I), net of tax
223
141
Deferred taxes relating to cash flow hedges (OCI I)
-473
-664
-1,253
0
3,118
3,113
5
5
2,796
15
2,801
-1,427
-1,268
-1,434
4,552
4,054
thereof profit attributable to non-controlling interests
Profit transferred to Porsche Holding Stuttgart GmbH
thereof profit attributable to shareholders
Profit after tax
Deferred
Current
Income tax income/expense
Profit before tax
-337
192
263
-1,798
-2,290
Financial data
170
-0
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
34
-866
-12
364
46
-1,230
-866
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
Fair value valuation of other participations and securities (equity instruments) that will not be
reclassified to profit or loss, net of tax
2,801
2018
2019
Pension plan remeasurements recognized in other comprehensive income
Profit after tax
€ million
of Porsche AG for the period 1 January to 31 December 2019
Consolidated statement of comprehensive income
171
3,118
Fair value valuation of securities and receivables (debt instruments) that may be reclassified
to profit or loss
730
Transferred to profit or loss
4,013
27,008
29,707
730
1,355
125
179
Financial services receivables
Trade receivables
Inventories
Non-current assets
Deferred tax assets
Other receivables
8,398
8,350
1,656
1,841
Other financial assets
Financial services receivables
3,889
842
759
842
42,366
Financial result
11,151
12,659
Current assets
2,635
3,511
Cash, cash equivalents and time deposits
297
98
451
81
95
Tax receivables
468
490
Other receivables
2,292
2,415
Other financial assets
Securities
Fair value changes recognized in other comprehensive income
146
298
-753
-1,107
354
588
-1,302
-1,890
0
-787
-436
-0
Financial data
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
Other comprehensive income, before tax
Items that may be reclassified subsequently 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 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
Fair value valuation of securities and receivables (debt instruments) that may be reclassified
to profit or loss, before tax
1,499
2,365
1,494
2,360
3,776
3,829
6,928
8,624
4,929
5,085
Other equity investments
Equity-accounted investments
Property, plant and equipment
Leased assets
368
Intangible assets
Dec. 31, 2018
Dec. 31, 2019
€ million
of Porsche AG as of 31 December 2019
Consolidated statement of financial position
173
172
5
5
Assets
-56
Depreciation, amortization and impairment
across the functions increased to € 3,044 mil-
lion compared with € 2,567 million in the prior
year. This primarily relates to the depreciation,
amortization and impairment of capitalized
development costs and property, plant and
equipment. Depreciation of the right-of-use
assets recognized in accordance with IFRS 16
was included for the first time in the fiscal year.
This amounted to € 96 million.
Other financial result
-21,256
7,262
100
25,784
100
28,518
in %
2018
in%
2019
163
Special items Diesel issue
Operating profit before special items
Profit before tax before special items
Profit after tax
Income tax income/expense
Profit before tax
Financial result
Operating profit
Other operating expenses
Distribution expenses
Administrative expenses
Other operating income
Cost of sales
Gross profit
-75
- 18,629
-72
25
4,289
14
3,862
-3
-675
4
-1,173
3
813
Sales revenue
3
-4
- 1,103
-3
- 1,029
-7
- 1,901
-2,044
28
7,155
846
17
€ million
Results of operations
5
10
15
20
25
prior year.
€25,784 million in the
€28,518 million, following
for the current reporting
period amounted to
Consolidated revenue at
the Porsche AG Group
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 - declined from € 2,306
million as of 31 December 2018 to € 1,785
million as of 31 December 2019.
€ 1,208 million) made by Porsche Holding
Stuttgart GmbH.
This was partly offset by capital contributions
amounting to € 1,273 million (prior year:
€ 2,294 million (prior year: € 2,157 million).
Payments made in respect of profit transfer
and dividends resulted in a cash outflow of
Cash flows from financing activities amounted
to € -353 million in the current fiscal year
after € -606 million in the prior year.
outflows from investments in loans and
time deposits amounted to € 427 million
(previous year: € 111 million).
€ 1,064 million in fiscal year 2018. The cash
The cash flows from investing activities result-
ed in a cash outflow of € 3,617 million in the
reporting period following € 3,566 million in
the prior year. Investments in intangible assets
(excluding capitalized development costs)
and property, plant and equipment decreased
from € 2,093 million in the previous year
to € 2,044 million in the period under review.
Additions to capitalized development costs
amounted to € 949 million following
Sales revenue
€ million
161
25,784
The operating return
on sales before special
items amounts to
15.4 per cent and is thus
above the strategic
target of 15 per cent.
Other operating income rose from € 813 mil-
lion to € 846 million. The increase was due
primarily to income from instruments used in
currency hedges. Other operating expenses
declined from € 675 million to € 628 million
before special items. Not adjusted for special
items, they increased to € 1,173 million.
The special items for the diesel issue relate to
the € 535 million fine imposed in the admin-
istrative offense proceedings instigated by the
public prosecutor's office in Stuttgart.
38,159
the average number of employees during the
year by 2,919 to 34,010.
Distribution expenses rose from € 1,901 mil-
lion to € 2,044 million due to the higher unit
sales. Administrative expenses also declined,
from € 1,103 million to € 1,029 million. In
relation to sales revenue, distribution expenses
remained level at 7 per cent (prior year: 7 per
cent), while administrative expenses decreased
slightly to 3 per cent (prior year: 4 per cent).
The personnel expenses across all functions of
the Porsche AG Group increased from € 3,613
million to € 4,003 million. The growth in per-
sonnel expenses is primarily due to the rise in
lion), which represents 75 per cent of sales
revenue (prior year: 72 per cent). In absolute
terms, the cost of sales rose by € 2,627 million
or 14 per cent. This slightly disproportionate
increase is due on the one hand to higher
research and development costs recognized
in the income statement. The capitalization
ratio for research and development costs
amounted to 44 per cent (prior year: 49 per
cent). On the other hand, mix and volume
improvements were partly offset by negative
currency effects and cost increases. This
caused the gross margin to decrease from
28 per cent to 25 per cent.
to € 21,256 million (prior year: € 18,629 mil-
The cost of sales increased in line with revenue
Consolidated revenue at the Porsche AG Group
amounted to € 28,518 million in the reporting
period (prior year: € 25,784 million). The
Porsche AG group sold 268,363 new vehicles
in the past fiscal year. This corresponds to an
increase in unit sales of 10 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 re-
corded an increase of 22,318 to 92,464 new
vehicles. The Macan remains the bestselling
model line, with 94,388 new vehicles sold - up
12,144 on the prior-year figure. In regional
terms, China remained the largest market, with
new vehicle sales totalling 87,644 units. Unit
sales grew by 10 per cent there in the fiscal
year. In addition, the European market (exclud-
ing Germany) recorded particularly strong
growth this year, with unit sales of 58,505.
This corresponds to 24 per cent growth in unit
sales. In Germany, unit sales increased by
23 per cent to 22,878 new vehicles.
of the Porsche AG Group
The Porsche AG Group's profit after tax de-
creased by € 317 million from € 3,118 million
in the corresponding prior-year period to
€2,801 million in the current fiscal year. The
tax rate in the reporting period was 31 per cent
(prior year: 32 per cent).
162
2016 2017 2018 2019
28,518
Financial analysis
2015
0
21,533
22,318
23,491
RESULTS OF OPERATIONS
192
0
263
-21,256
25,784
28,518
Distribution expenses
Administrative expenses
Other operating income
Cost of sales
Gross profit
Sales revenue
2018
2019
€ million
of Porsche AG for the period 1 January to 31 December 2019
Consolidated income statement
169
Value added statement
Consolidated statement of changes in equity
Consolidated statement of cash flows
Consolidated statement of financial position
Consolidated statement of comprehensive income
Consolidated income statement
Financial data
- 18,629
7,262
7,155
-2,044
-92
-148
Interest expenses
408
416
Interest income
3
-1
Share of profit or loss of equity-accounted investments
166
4,289
Operating profit
-675
-1,173
Other operating expenses
813
846
-1,103
- 1,029
-1,901
3,862
Financial analysis
*Not adjusted for special items.
2016 2017 2018 2019
16
4,589
17
4,289
15
4,397
2
-535
12
4,552
3,118
2,801
-6
-1,434
-1,253
18
4,552
14
4,054
1
10
-75
18
164
2015
0
3,877
4,144
4,289
4,397*
1
165
2
Financial analysis
3
4
Operating profit (EBIT)
€ million
5
million to € 4,397
million.
The operating profit
before special items
increased by € 108
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 15.4 per cent before special
items (13.5 per cent not adjusted for special
items) in the past financial year (previous year:
16.6 per cent). The pre-tax return on sales
amounted to 16.1 per cent before special
items and 14.2 per cent not adjusted for spe-
cial items (previous year: 17.7 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 21.2 per cent before special
items and 18.5 per cent not adjusted for spe-
cial items (previous year: 24.5 per cent).
The return on equity after tax was 16.5 per
cent (previous year: 19.7 per cent).
Profit before tax amounted to € 4,589 million
before special items and € 4,054 million not
adjusted for special items (previous year:
€ 4,552 million).
The financial result amounted to € 192 million
(prior year: € 263 million). The decline in the
financial result was mainly caused by the € 83
million write-down on the equity-accounted
investment in Bertrandt AG. The interest ex-
pense on the lease liability in accordance with
IFRS 16 was included in the financial result
for the first time. This amounted to € 29 million.
Operating profit amounted to € 3,862 million.
Adjusted for special items, it increased by
€ 108 million to € 4,397 million.
3,404
Equity and Liabilities
Other liabilities
Capital reserves
10,245
45
46
27
-77
804
4,096
10,245
45
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at Jan. 1, 2019
Balance at 31 Dec. 2018
Other changes
Profit transfer and dividends payment
Capital increases/decreases
Disposal of equity instruments
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at 1 Jan. 2018
Changes in accounting policy to reflect IFRS 9
Unadjusted balance at 1 Jan. 2018
interests
Total equity
Equity-accounted Non-controlling
investments
4,019
Equity and debt
instruments
831
3,113
313
75
4,876
11,453
45
0
-2,290
1,208
2,365
-753
3,118
5
15,193
0
-7
0
15,200
0
-2,290
1,208
-337
-518
68
-337
-518
68
34
3,147
46
hedging (OCI II)
Cash flow hedges Deferred costs of
(OCI I)
Currency
translation
38
723
Change in other financial liabilities
2,727
-2,422
-2,369
Repayment of bonds
-2,157
1,208
1,273
-2,294
-19
2,410
Proceeds from issuance of bonds
Capital transactions with non-controlling interest shareholders
Profit transfer and dividends
Capital contributions
-3,566
-3,617
Cash flows from investing activities
-111
-427
Change in loans and time deposits
-237
-146
Change in investments in securities
10
13
Cash received from disposal of intangible assets and property, plant and equipment
-71
-65
Repayments of lease liabilities.
-77
Cash flows from financing activities
-353
Retained earnings
Capital reserves
Subscribed
capital
Hedging
Other reserves
€ million
of Porsche AG for the period 1 January to 31 December 2019
Consolidated statement of changes in equity
176
Financial data
175
3,410
4,534
-291
775
2,635
3,174
Cash and cash equivalents at end of period
Securities, loans and time deposits
Gross liquidity
2,635
3,174
Cash and cash equivalents at end of period
-327
516
Net change in cash and cash equivalents
2
23
Effect of exchange rate changes on cash and cash equivalents
-606
1,360
16,477
45
11,453
to the state (taxes, duties)
44.5%
3,200
3,613 43.3%
48.7%
4,003
to employees (wages, salaries, benefits)
30.0%
2,157
27.4%
2,290
21.9%
1,802
to shareholders (profit transfer)
20172)
2018
2019
Appropriation of funds in € million
7,191
8,341
-1,301
-855
-2,128
8,218
-2,276
-2,567
-3,044
-13,665
1,311
15.9%
1,473
17.7%
FINANCIAL POSITION
180
Financial data
2) 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".
1) 2018 was adjusted.
100%
7,191
100%
8,341
100%
8,218
Value added
6.2%
- 14,844
449
842
11.8%
966
to the company (reserves)
1.2%
87
1.5%
123
1.7%
136
to creditors (interest expense)
18.1%
1,298
10.1%
Change in equity investments
- 15,956
23,491
Profit transfer and dividends payment
1,273
1,273
Capital increases/decreases
Disposal of equity instruments
1,499
5
-196
-332
- 1,302
0
-196
-332
2,801
5
16,477
6
-291
313
1122
92
1,930
92
-866
2,796
75
4,876
-1,798
- 1,802
Capital transactions involving a change in ownership interest
-17
25,784
823
828
28,518
20172)
2018¹)
2019
Depreciation and amortisation
Other upfront expenditures
Value added
Cost of materials
Sales revenue
Other income
Source of funds in € million
of Porsche AG for the period 1 January to 31 December 2019
Value added statement
179
942
178
177
17,428
5
0
-487
19
167
4,991
12,726
45
Balance at 31 Dec. 2019
Other changes
-19
Financial data
Subscribed capital
Cash flows from operating activities amounted
to € 4,486 million in the 2019 reporting
period following € 3,845 million in the prior
year. The material effects resulted from higher
depreciation, amortization and write-downs,
lower outflows for inventories and a decrease
in profit before tax.
Income taxes paid
-127
Other non-cash expense/income
4
7
Share of profit or loss of equity-accounted investments
46
10
Gain/loss on disposal of non-current assets
2,567
3,044
Depreciation, amortization and impairment losses
-1,531
-1,310
4,552
4,054
Profit before tax
2,960
2,635
Cash and cash equivalents at beginning of period
2018
2019
€ million
Consolidated statement of cash flows
174
Financial data
1) The prior year figures were restated.
38,159
-214
Change in inventories
-86
-851
-1,064
-949
Additions to capitalized development costs
-2,093
-2,044
plant and equipment
Investments in intangible assets (excluding capitalized development costs), and property,
3,845
4,486
Cash flows from operating activities
-239
-266
Change in financial services receivables
42,366
-940
81
378
Change in leased assets
Change in other provisions
371
417
Change in pension provisions
504
-456
Change in liabilities (excluding financial liabilities)
-505
-372
Change in receivables (excluding financial services)
-807
12,017
of Porsche AG for the period 1 January to 31 December 2019
93
Financial liabilities ¹)
650
681
Deferred tax liabilities
778
11,299
Other provisions
3,792
5,438
Provisions for pensions and similar obligations
16,477
17,428
Equity
6
5
Non-controlling interests
16,471
17,423
Equity before non-controlling interests
97
-339
Other reserves
4,876
4,991
Retained earnings
11,453
12,726
45
45
5,375
3,644
996
657
72
Current liabilities
Tax payables
1,087
1,077
3,441
Other financial liabilities 1)
3,134
2,582
2,215
2,239
1,951
2,118
96
3,082
402
Other financial assets
Trade payables
Financial liabilities
Other provisions
Provisions for taxes
9,665
13,639
Non-current liabilities
492
Other liabilities
399
129
2030
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
GRAN TURISMO
Porsche took second place in the Women
Career Index (FKI), a management tool
14
Psche Zentrum Sarand
H&R
SBM swiss barge ag
S.GO 5124E
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.
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
H&R
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.
THE TEAM AND THE 25-YEAR-OLD MANTHEY-RACING WITH PORSCHE 911 GT3 R CARS
Ferry Porsche, 1981
25 years of Manthey-Racing
Second place in Women Career Index
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
SOR Poriche Zentrum Wiesba
H&R
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.
Stakeholder communications and dialogue
Stakeholder survey and materiality
88 ENVIRONMENT
Decarbonisation
Circular economy
106 SOCIAL
Diversity
Sustainability organisation
Partner to society
Supply chain responsibility
Governance and transparency
136 EMPLOYEES, SOCIETY,
SPORTS AND COMMUNICATIONS
Employees
Society
Sports
Communications
180 RESEARCH AND DEVELOPMENT
120 GOVERNANCE
190 SALES, PRODUCTION AND PROCUREMENT
Sales
Sustainability strategy
72 STRATEGY 2030
Andreas Haffner
tchers,
GROUP PHOTO OF THE EXECUTIVE BOARD WITH THE MISSION R IN FRONT OF THE PORSCHE MUSEUM
Mobil
PORSCHE
=
Responsibility.
76 SUSTAINABILITY MANAGEMENT
Annual and Sustainability Report
38/30-70
01
Mission R
TAG
MICH
04 LETTER FROM THE EXECUTIVE BOARD
06 IMPORTANT EVENTS
Business performance
Outlook
of Porsche AG
2021
Production
Procurement
214 FINANCIAL ANALYSIS
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".
Reporting standard and assurance
→ GRI 102-49
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
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
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
7 www.volkswagenag.com website in German
and English from 15 March 2022.
Report content and reporting period
→ GRI 102-46, 102-48
Basis of consolidation
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
28 headquartered in Germany and 85 abroad.
Responsibility.
"We assume responsibility. For
sustainable activity, for secure.
jobs and for society. Active.
practice, trust and commitment
are what set Porsche apart."
Oliver Blume, 2021
"We shouldn't be throwing
the limited materials we have
in this world away after use."
→ GRI 102-45
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
Net assets
עם
Results of operations
224 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
238 NON-FINANCIAL KEY FIGURES
Environmental and energy key figures
Personnel and social key figures
252 FURTHER INFORMATION
The Supervisory Board
Emission and consumption information
GRI content index
TCFD index
Porsche AG Group - brief overview
Independent auditor's report
271 LEGAL NOTICE
Human Resources
Shivers
H
Дольшивык. 8. Дожил ввінь чини
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
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
It features LED main headlights as standard.
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
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.
S.GO 380E
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
The year under review began with an anniver-
sary, the 25th birthday of the Porsche roadster
family. This gave the sports car manufacturer
8
339,000 euros in aid for sports clubs
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.
911 GT3 IN GUARDS RED
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.
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.
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.
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
00
S GO 5007
10
25 years of the Porsche Boxster
LETTER FROM THE EXECUTIVE BOARD OF PORSCHE AG
THE BOXSTER THEN AND NOW: THE STUDY (LEFT) MEETS THE CURRENT MODEL (RIGHT)
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
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.
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.
Dear Reader,
Research and Development
Michael Steiner
Miral fleines
Lutz Meschke
Deputy Chairman of
the Executive Board
Finance and IT
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.
раг виши
Albrecht Reimold
P.RE. M
Chairman of the Executive Board
Oliver Blume
Barbara Frenkel
Procurement
Detlev von Platen
Sales and Marketing
Deller von
Production and Logistics
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.
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.
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.
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.
IMPORTANT EVENTS
Financial position
9:11. Porsche. Podcast.
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Research and development
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.
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.
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.
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.
189
THE DIGITAL TWIN DATA IS POOLED IN A CENTRALISED INTELLIGENCE SYSTEM
188
PORSCHE HAS BEEN WORKING ON A DIGITAL TWIN CONCEPT FOR AROUND THREE YEARS
and the intelligent, self-learning algorithms
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
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.
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.
S.PO 513
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.
SALES, PRODUCTION AND PROCUREMENT
Sales
Procurement
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".
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.
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.
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.
of vehicles in the USA. This involves new car
buyers being surveyed once a year.
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
Production
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.
2021 accolades and awards
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.
Satisfied customers
SALES
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
0
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.
on the basis of, for example, sensor data from
gorithm can then calculate the driving style
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-
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.
Porsche analysed priorities
and use cases to identify
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.
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.
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.
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.
HIGH-VOLTAGE BATTERY REPAIRS ARE PERFORMED AT QUALIFIED PORSCHE CENTRES
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.
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
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.
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.
Commercially available high-voltage
battery repairs
185
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
project that will allow high-voltage batteries
186
PORSCHE
THE BATTERY IN THE TAYCAN COMBINES RANGE, PERFORMANCE AND SUSTAINABILITY
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.
driven analysis, monitoring and diagnostics.
a physical counterpart and it allows for data-
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
Digital chassis twin for predictive driving
functions and component statuses
187
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Research and development
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.
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.
The best results are achieved with a medium-
sized battery where the optimum driving
dynamics balance has been struck between
weight and efficiency.
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.
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 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.
Battery development between range,
performance and sustainability
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.
Research and development
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.
PORSCHE DELIGHTS THE OLD AND YOUNG ALIKE
PORSCHE DESTINATION CHARGING PROVIDES AC CHARGING POINTS AT SELECT HOTELS, RESTAURANTS AND AIRPORTS
Destination
Charging
PORSCHE
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.
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.
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.
196
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 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 -
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.
Dense charging infrastructure
195
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
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.
MODEL SELECTION AIDED BY THE DIGITAL VEHICLE FINDER FUNCTION
S.TA 5135E
Flexible mobility services
197
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
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.
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.
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.
SINCE 2021, THE ALL-ELECTRIC TAYCAN HAS ALSO BEEN AVAILABLE FROM THE FLEXIBLE MOBILITY SERVICE PORSCHE DRIVE SUBSCRIPTION
Sales personnel changes
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.
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
Sales, production and procurement
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.
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.
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.
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.
Porsche Panamera 4 E-Hybrid
194
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.
193
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
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.
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.
Detlev von Platen,
Member of the Executive Board -
Sales and Marketing
ONE OF THE FIRST TWO PORSCHE STUDIOS WITH THE NEW CONCEPT OPENED IN TAIWAN IN SPRING 2021
A PRODUCT. PORSCHE IS
A PROMISE THE PROMISE
OF A SPECIAL BRAND
AND PRODUCT EXPERIENCE.
BECAUSE THIS IS PRECISELY
WHAT MAKES US UNIQUE."
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 brand as a success factor
THE PORSCHE COMMUNITY IS AN IMPORTANT FUTURE FACTOR AND CONSISTS OF PEOPLE WHO SHARE A PASSION FOR PORSCHE
STHA 5866
PORSCHE
192
"PORSCHE ISN'T SIMPLY
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.
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.
a billion euro mark was achieved in the first
half of 2021 alone.
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
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.
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.
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.
urbanisation, Porsche goes to where its target
groups can be found.
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
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.
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.
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.
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.
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.
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 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.
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.
184
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
PORSCHE DESIGN
ZEITREISE
#3
#1
DER EXTREMS
Mission R
DRIVEN BY DREAMS
Carrera
KRAFTAKT
DR. FRANDAMAN MO M
TEMPO GESTATIN SPORTCH
arrera
THE CARRERA MAGAZINE REGULARLY PROVIDES THE WORKFORCE WITH INFORMATION ON THE LATEST DEVELOPMENTS
#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.
178
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
PERFORMANCE
#2
VICE PRESIDENT COMMUNICATIONS SEBASTIAN RUDOLPH WELCOMES CHAIRMAN OF THE EXECUTIVE BOARD OLIVER BLUME TO THE 9:11 PODCAST
inks are used for printing and the energy used
is 100 per cent renewable.
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.
MANY TEST KILOMETRES ARE MOVED TO THE LABORATORY AS COMPUTER SIMULATIONS
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.
DYNAMIK
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.
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.
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.
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
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.
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 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.
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.
Synergy
RACING FUEL
THE PORSCHE 911 GT3 CUP VEHICLES IN THE 2021 PORSCHE MOBIL 1 SUPERCUP WERE POWERED BY RENEWABLE 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.
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).
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.
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 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
used to turn H₂ and CO2 into e-methanol
(CH₂OH), with MTG synthesis then being
applied to turn this into synthetic naphtha.
Esso
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.
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.
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.
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
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.
worlds will be created that replicate all the
relevant road situations, serving as test cases
for the driver assistance systems' algorithms
and sensors.
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.
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.
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.
MICHELIN
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
183
1971 2021
PORSCHE
DEVELOPMENT
WEISSACH
THE SKID PAD AT THE WEISSACH DEVELOPMENT CENTRE THEN AND NOW
"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
INNOVATION MANAGEMENT AT PORSCHE
Turbo for ideas - innovation management
at 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.
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.
182
a time for the employee to present their idea
in person and receive immediate feedback.
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 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
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.
the Chairman of the Executive
Board of Porsche AG is now
key to securing the future of
the company.
The Innovation Management
department founded by
50
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.
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.
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.
Research and development
Tax payables
Current liabilities
939
2
1,184
Other provisions
13
5,932
11
5,525
44
20,224
45
Provisions for taxes
Equity
Equity and liabilities
216
Other liabilities
Non-current liabilities
2
Provisions for pensions and similar obligations
22,935
633
782
30
13,982
Other financial liabilities
15,368
1
473
1
645
1
285
1
12
5,668
13
6,599
Financial liabilities
2
685
2
Deferred tax liabilities
Financial services receivables
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.
4,686
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.
Deferred income tax liabilities amounted to
€ 782 million compared to € 685 million in
the prior year.
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.
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.
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.
Net assets
of the Porsche AG Group
€ million
Assets
Intangible assets
Other receivables
Deferred tax assets
Non-current assets
31
Inventories
Cash, cash equivalents and time deposits
increased year on year by € 186 million to
€ 4,686 million.
Trade receivables
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.
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
9
4,500
10
Current assets
18,552
36
15,096
51,382
100
45,491
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.
to € 4,517 million at the end of the reporting
period.
126
4
111
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
268,691
201
Cash, cash equivalents and time deposits
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
200
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 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.
The tenth PEC is under construction in
Toronto, Canada, and is scheduled to
open in 2024.
NEW
eans
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.
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.
Sales, production and procurement
0
263,2361
250
7
3,638
Other financial liabilities
5
2,335
5
2,447
Trade payables
6
2,657
6
3,128
Financial liabilities
100
1,849
4
2,189
Other provisions
0
2,959
255,683
7
1,486
200
150
217
Financial analysis
100
45,491
100
51,382
25
11,285
25
13,079
0
43
0
65
3
1,331
3
Other liabilities
2
(until 18 August 2021)
2
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.
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."
A new kind of collaboration
BARBARA FRENKEL AND UWE-KARSTEN STÄDTER AT THE PORSCHE MANAGEMENT CONFERENCE
FAR FROM BEING A STOPGAP MEASURE, DIGITAL SUPPLIER INSPECTION DELIVERS EXCELLENT RESULTS
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.
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."
Porsche Asia Pacific growth
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.
Uwe-Karsten Städter,
Member of the Executive Board -
Procurement
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.
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
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.
PROCUREMENT
207
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
"PROCUREMENT IS READY
FOR THE CHALLENGES
OF TRANSFORMATION -
WE ARE SEIZING OPPOR-
TUNITIES AND ACTIVELY
SHAPING THE COMPANY'S
AUTOMOTIVE FUTURE."
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.
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.
208
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.
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.
Process efficiency and innovation
management
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.
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.
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.
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.
financial year in what are known as sustain-
ability dialogues. Together, they defined
concrete CO₂ reduction measures.
(since 19 August 2021)
Member of the Executive Board -
Procurement
Barbara Frenkel,
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."
"PROCUREMENT HAS
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
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.
INDONESIAN RUBBER FARMERS ARE OFFERED TRAINING IN PRODUCTION PRACTICES, BIODIVERSITY AND OCCUPATIONAL HEALTH AND SAFETY
209
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
206
LEAN & GREEN MANAGEMENT AWARD 2021 FOR THE LEIPZIG PLANT
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.
in the site in Saxony.
K
204
THE PAINT SHOP IN ZUFFENHAUSEN CAN ALSO CATER TO SPECIAL COLOUR REQUESTS
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.
Production in Zuffenhausen
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.
Assembly capacities in Malaysia
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.
203
Sales, production and procurement
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
2 Incl. 16,953 vehicles not yet eligible for registration at the time
of factory delivery as a result of the semiconductor shortage.
2021
2020
2019
2018
2017
Production figures from 2019 exclude pre-series vehicles;
figures up to 2018 include pre-series vehicles.
0
300,081 1,2
NEW PRODUCTION PROCESS USES STICKY PADS INSTEAD OF PLASTIC PLUGS
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.
ANUC
the Taycan paint shop
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
The Porsche site in
Leipzig is shaping up for
electromobility.
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.
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
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
Production in Leipzig
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.
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
Lean & Green Management Award 2021
for 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.
FINAL ASSEMBLY OF THE PANAMERA AT THE LEIPZIG PLANT
205
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Sales, production and procurement
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.
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.
Near-natural company grounds at
the main site in Zuffenhausen
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.
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.
New production process at
755
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.
210
2
1,199
9
4,108
9
4,517
67
30,395
1,081
64
2
817
2
867
0
164
0
113
32,830
2
1,081
2
982
Securities
0
163
0
155
Tax receivables
1
606
1
579
Other receivables
6
2,761
11
5,353
Other financial assets
3
1,122
20
8,870
16
8,596
8,763
Property, plant and equipment
Leased assets
12
5,437
12
6,190
%
Dec. 31, 2020
%
Dec. 31, 2021
Results of operations
Financial position
Net assets
FINANCIAL ANALYSIS
electric
TTER WAY FORWARD
211
THE STARTUP AUTOBAHN CONCEPTS ARE PRESENTED AT EXPO DAY
Sales, production and procurement
17
MART
8,695
3,954
Other financial assets
5
2,414
7
3,461
Financial services receivables
1
217
1
313
Other equity investments
0
167
1
573
Equity-accounted investments
8
3,614
8
19
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.
50
Open stage at the IAA
An open-space appearance instead of
50
D
FRÉDÉRIC ARNAULT (TAG HEUER) AND DETLEV VON PLATEN (PORSCHE AG)
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 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 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.
born in 1985 and was later adopted from
199
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
Sales, production and procurement
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
PORSCHE AND THE FASHION LABEL AIMÉ LEON DORE (ALD) REFASHIONED A VEHICLE TOGETHER
further customised by the Porsche Exclu-
sive Manufaktur.
198
a Porsche Taycan 4S. The Artcar was also
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
Creative Director of Balmain in 2011,
aged just 25 - making him the youngest
creative director of a Paris fashion house
since Yves Saint Laurent.
As a first step in the strategic
brand partnership with
TAG Heuer, a new watch was
unveiled - the TAG Heuer
Carrera Porsche Chronograph.
École supérieure des arts et techniques
de la mode (ESMOD) in Paris, then became
an orphanage. He attended the fashion school
-1,118
396
4,648
64
43
125
125
4,032
396
616
4,038
6
20,224
5
-465
54
-1,118
43
-54
9,146
Disposal of equity instruments
22,935
8
-11
-340
-361
223
757
14,225
45
Balance at December 31, 2021
Other changes
Capital transactions involving a change in ownership interest
471
-1,862
-1,858
Profit transfer and dividends payment
471
Capital contribution
4,102
-173
3,633
13,754
22
776
-340
22
776
-340
-487
-19
167
Total equity
Equity-accounted Non-controlling
investments
interests
Equity and debt
instruments
Cash flow hedges Deferred costs of
(OCI I)
hedging (OCI II)
translation
Currency
Hedging
Other reserves
22
6,302
0
17,428
45
20,224
5
-465
757
-173
6,302
13,754
45
- 1,864
1,028
234
A
467
Provisions for taxes
3,166
4
5
Financial data
2021
236
no data
no data
no data
Value added
to the company (reserves)
to creditors (interest expense)
Other taxes
no data
no data
no data
no data
no data
no data
Income tax
15.9%
1,311
12.2%
no data
1,044
no data
126
100%
8,218
100%
8,568
100%
10,247
11.8%
966
15.1%
1,292
21.2%
2,176
1.7%
136
1.6%
138
1.2%
no data
15.7%
1,605
to the state (taxes, duties)
28,695
709
33,138
893
2019
2020
2021
-1,860
to shareholders (profit transfer)
Appropriation of funds in € million
Value added
Other upfront expenditures
Depreciation, amortization and impairment losses
Cost of materials
Other income
Sales revenue
Source of funds in € million
of Porsche AG for the period 1 January to 31 December 2021
VALUE ADDED STATEMENT
28,518
828
- 19,363
-16,661
-15,956
48.7%
4,003
49.4%
1,802 21.9%
1,864 21.7%
4,230
1,862 18.2%
4,478 43.7%
to employees (wages, salaries, benefits)
2019
235
2020
8,568
10,247
-2,128
-818
-1,207
-3,044
-3,357
-3,214
8,218
1,028
Balance at Jan. 1, 2021
10
-223
-152
Change in inventories
-13
-222
Other non-cash expense/income
15
23
Share of profit or loss of equity-accounted investments
49
35
Gain/loss on disposal of non-current assets
3,357
3,214
Depreciation, amortization and impairment losses
-837
-1,552
Change in receivables (excluding financial services)
Income taxes paid
-409
Change in liabilities (excluding financial liabilities)
4,140
6,416
Cash flows from operating activities
-987
-872
-945
-931
-299
539
493
471
Change in financial services receivables
Change in leased assets
Change in other provisions
Change in pension provisions
-134
543
-734
Investments in intangible assets (excluding capitalized development costs),
4,397
Profit before tax
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 liabilities
5,729
1,486
Tax payables
Current liabilities
3,174
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
231
Financial data
230
45,491
51,382
11,285
13,079
43
65
1,331
3,172
and property, plant and equipment
-1,442
Balance at Jan. 1, 2020
€ million
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
233
Financial data
232
5,862
8,406
1,518
4,079
4,344
4,327
Cash and cash equivalents at end of period
Securities, loans and time deposits
Gross liquidity
4,344
4,327
Cash and cash equivalents at end of period
Profit after tax
1,199
Other comprehensive income, net of tax
Disposal of equity instruments
3,162
4,991
earnings
Retained
12,726
45
reserves
Capital
Subscribed
capital
Total comprehensive income
Other comprehensive income, net of tax
Profit after tax
Balance at December 31, 2020
Other changes
Capital transactions involving a change in ownership interest
Profit transfer and dividends payment
Capital contribution
Total comprehensive income
Additions to capitalized development costs
-67
-29
471
Capital contributions
-3,019
-5,965
51
-2,308
Change in loans and time deposits
48
-300
-283
21
-46
-352
Change in investments in securities
Cash received from disposal of intangible assets and property, plant and equipment
Change in equity investments
- 1,547
-1,225
- 1,601
Profit transfer and dividends
Net change in cash and cash equivalents
- 1,864
Capital transactions with non-controlling interest shareholders
50
Effect of exchange rate changes on cash and cash equivalents
78
-518
Cash flows from financing activities
-102
-110
Repayments of lease liabilities.
282
-444
Change in other financial liabilities
-2,550
-3,814
Repayment of bonds
3,222
5,243
Proceeds from issuance of bonds
1,028
-1,802
Cash flows from investing activities
0
FINANCIAL POSITION
125
Cash flow hedges (OCI II), net of tax
-7
-54
29
179
Cash flow hedges (OCI II), before tax
521
570
-492
-391
Fair value changes recognized in other comprehensive income (OCI II)
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
22
Deferred taxes relating to cash flow hedges (OCI II)
Fair value valuation of debt instruments that may be reclassified to profit or loss
Fair value changes recognized in other comprehensive income
4,095
3,633
4,102
467
64
-335
165
802
-101
458
Cash flow hedges (OCI I), before tax
-595
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
-283
-75
Transferred to profit or loss (OCI I)
6
877
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
3,166
4,038
2020
2021
Pension plan remeasurements recognized in other comprehensive income
Profit after tax
€ million
-261
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
228
227
-1,860
- 1,858
4
6
3,162
4,032
3,166
4,038
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
3,629
4
10
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
616
0
397
9
659
Unrealized currency translation gains/losses
Foreign exchange differences
Items that will not be reclassified to profit or loss
0
-0
43
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
Transferred to profit or loss
4
229
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
118
-489
Other reserves
6,302
9,146
Retained earnings
13,754
14,225
45
45
Equity before non-controlling interests
Capital reserves
Equity and liabilities
45,491
51,382
15,096
18,552
Current assets
4,500
4,686
Cash, cash equivalents and time deposits
755
Subscribed capital
982
22,927
Non-controlling interests
Non-current liabilities
Other liabilities
285
633
Other financial liabilities
5,668
6,599
Financial liabilities
685
782
20,219
Deferred tax liabilities
1,184
Other provisions
5,932
5,525
Provisions for pensions and similar obligations
20,224
22,935
Equity
5
8
939
-233
Securities
155
8,596
2,414
3,461
Other financial assets
Financial services receivables
217
313
167
573
3,614
8,870
3,954
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
8,695
163
Other receivables
Non-current assets
Tax receivables
606
579
Other receivables
2,761
5,353
Other financial assets
1,122
1,081
1,081
Deferred tax assets
1,199
4,517
30,395
32,830
817
867
164
113
Financial services receivables
Trade receivables
Inventories
4,108
-163
-998
-1,528
6
-2,111
26
7,540
27
8,857
-74
-21,155
-73
-24,281
- 1,881
100
100
33,138
%
2020
%
2021
Financial analysis
220
1 The prior-year figures were adjusted.
Profit after tax
28,695
Income tax income/expense
-7
4
15
4,397
17
5,729
0
220
1
415
15
4,177
-1,426
16
- 4
-1,180
4
- 1,085
4
953
3
1,079
-4
-1,255
5,314
- 1,691
Profit before tax
Operating profit
28,518 28,695
5
10
15
218
LUTZ MESCHKE HAS BEEN MEMBER OF THE PORSCHE AG EXECUTIVE BOARD RESPONSIBLE FOR FINANCE AND IT SINCE 2009
Lutz Meschke, Deputy Chairman and
Member of the Executive Board -
Finance and IT
20
23,491
25
33,138
25,784
30
of the Porsche AG Group in € million
Sales revenue
"WE CAN BE VERY HAPPY
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.
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).
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).
for investments in securities € 283 million
(prior year: € 300 million).
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
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.
WITH THE 2021 FINANCIAL
YEAR. WE ACHIEVED AN
EXCEPTIONALLY STRONG
RESULT THANKS TO OUR
HEALTHY BALANCE SHEET
AND COST STRUCTURE."
Financial result
0
Financial analysis
Other operating expenses 1
Other operating income
Distribution expenses
Administrative expenses
Gross profit
Cost of sales ¹
Sales revenue
€ million
of the Porsche AG Group
Results of operations
The return on sales
increased to 16.0 per cent,
thereby significantly
surpassing the strategic
target of 15 per cent.
2017 2018 2019 2020 2021
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 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.
expenses is mainly driven by the rise in the
average number of employees during the year
by 500 to 36,519.
Personnel expenses of the Porsche AG group
increased from € 4,230 million to € 4,478
million in total. The increase in personnel
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).
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).
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.
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 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).
RESULTS OF OPERATIONS
219
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.
Financial data
- 1,231
4,038
2020
2021
Financial data
226
1 Prior year figures adjusted.
Profit transferred to Porsche Holding Stuttgart GmbH
thereof profit attributable to non-controlling interests
thereof profit attributable to shareholders
Profit after tax
Deferred
33,138
-24,281
8,857
Current
Profit before tax
Financial result
Other financial result
Interest expenses
Interest income
Share of profit or loss of equity-accounted investments
Operating profit
Administrative expenses
Other operating income
Other operating expenses
1
Distribution expenses
Income tax income/expense
Gross profit
28,695
-21,155
-2,111
-1,231
- 1,691
4,397
5,729
220
415
-47
129
-129
-113
7,540
406
-10
-22
4,177
5,314
953
-1,180
- 1,085
1.079
-1,255
-1,426
-1,881
421
-4
Cost of sales¹
€ million
222
THE NEW 718 SPYDER CONTINUES THE HISTORY OF SUCH FAMOUS ROADSTERS AS THE PORSCHE 550 SPYDER AND THE 718 RS 60 SPYDER
SGO 604E
of the Porsche AG Group in € million
Operating profit (EBIT)
5
in 2021, compared with
4,177 million euros in
the previous year.
Operating profit totalled
5,314 million euros
(prior year: 14.7 per cent).
The pre-tax return on equity of Porsche AG's
financial services division was 21.2 per cent
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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 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-
Profit before tax amounted to € 5,729 million
(prior year: €4,397 million).
€ 51 million on the equity-accounted invest-
ment in Bertrandt AG, which had been written
down by € 115 million in the prior year.
The financial result amounted to € 415 mil-
lion (prior year: € 220 million). The increase is
mainly due to reversals of write-downs of
Operating profit amounts to € 5,314 million,
up by € 1,137 million on the prior year
(prior year: €4,177 million).
221
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
11
3,166
12
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).
Sales revenue
4,3971
4,144
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft for the period January 1 to December 31, 2021
CONSOLIDATED INCOME STATEMENT
Value added statement
Consolidated statement of changes in equity
Consolidated statement of cash flows
Consolidated statement of financial position
Consolidated statement of comprehensive income
Consolidated income statement
FINANCIAL DATA
223
4,289
Financial analysis
1 Before special items: 4,397; after
2021
2017 2018 2019 2020
0
5,314
1
2
3
4
4,177
special items: 3,862.
237
Other provisions
2020
The key figures listed refer to Porsche AG and Porsche Leipzig GmbH.
ENVIRONMENTAL AND ENERGY KEY FIGURES
240
Personnel and social key figures
Environmental and energy key figures
NON-FINANCIAL KEY FIGURES
20.1%
19.8%
19.7%
8.5%
10.2%
19.1%
77.2%
76.6%
71.2%
14.3%
13.2%
9.7%
No. of employees by gender
Female
6,808
6,588
Male
30,188
29,771
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.
6,450
28,979
Direct energy consumption by primary energy source in MWh
Production sites
380,428
372,023
418,591 v
District heating
Electrical energy¹
Production sites
Total
2019
2020
2021
Indirect energy consumption by primary energy source in MWh
Conversion factor from litres to MWh: petrol 8.72 kWh/l; diesel 9.91 kWh/l.
Fuel¹
Heating oil
Gas
Other sites
Heating oil
Of which biogas
Gas
Development sites
Heating oil
Of which biogas
Combustible gas for manufacturing processes
Of which biogas
Gas
Total
Percentage breakdown of executive employees by age and gender
2021
2020
90.3%
93.7%
93.5%
Employees in 2021
by gender
81.6%
Male
22.1%
< 30 years
9.7%
Female
Employees by type of employment¹
Full-time employees 2
2021 V
2020
2019
Employees in 2021 by
age structure
60.0%
30-50 years
Executive employees in
2021 by gender
90.3%
Male
17.9%
Of which trainees
Part-time employees
Employees subject to wage agreements
34,297
717
2,699
Employees exempt from wage agreements and executive employees
6.5%
6.3%
9.7%
74.2%
2019
Percentage breakdown of employees by gender
Female
18.4%
18.1%
18.2%
Breakdown by age
Male
81.6%
81.9%
81.8%
< 30 years
332,182
30-50 years
18.4%
Female
Breakdown by gender
Female
Male
0.0%
0.0%
0.0%
16.1%
15.6%
25.8%
83.9%
84.4%
> 50 years
294,317
301,608
237,283
2021 V
2019
> 50 years
20.0%
22.6%
23.9%
834
1,021
> 50 years
59.9%
57.7%
1,485
1,757
56.4%
1,641
1,485
145
205
194
no data
no data
65,555
Energy consumption of the production sites in kWh/vehicle
64,292
61,222
30-50 years
<30 years
Porsche Leipzig GmbH
30-50 years
9,875
9,798
Of which male
15.3%
15.0%
14.6%
33,089
32,661
31,690
Porsche AG
Region: Europe (excluding Germany)
1,695
69,697
1,565
Region: North America
840
819
Region: Asia
1,098
1,055
Other regions (Australia, Latin America)
274
259
303
Employees by gender
< 30 years
1,581
32,702
4,294
64,437
69,891
58,795
66,476
66,380
74,662
28,201
34,422
51,372
Other sites
Electrical energy1
District heating
Weissach CHP plant
Electrical energy1
District heating
CHP plants and PV arrays
Development sites
327,119
248,820
182,101
204,868
272,976
340,327
266,375
347,832
433,289 V
2019
2020
2021
26,589
30,719
43,527
246,818
229,176
52,295
52,664
2,487
1,228
1,214
4,571
2,046
no data
31,697
72,811
65,505
56,936
72,811
30,000
149,130
269,750
61,427
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.
2,833
3,582
9,249
8,493
8,165
12,344
11,326
11,747
13,275
12,857
13,380
537
3,095
10,308
34,010
798
2,349
31,816
> 50 years
7.3
19.0
12.1
15.9
21.6
12.1
17.4
23.3
10.5
10.4
11.7
16.6
9.7
22.6
Total
1,278
1,454
1,037
Female
Male
223
1,055
236
190
1,218
847
11.3
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.
17.2
9.9
Female
268
244
48
Porsche AG
Porsche Leipzig GmbH
Other Group companies
Male
Porsche AG
Male
1,166
1,240
1,047
Porsche Leipzig GmbH
No. of returned employees still employed after 12 months2
Other Group companies
12.4
15.9
21.6
14.2
15.7
21.7
15.3
17.2
22.4
11.3
Average no. of training hours per participant by employee category
2021
2020
Other Group companies
19.4
13.9
20.8
Non-financial key figures
249
250
Number of accidents, lost days and fatalities¹
2020
2019
Total
Accidents 2
Lost days 3
Fatalities
Porsche AG
Accidents²
Percentage breakdown of origin of suppliers to Porsche AG in 2021 1
203
214
218
4.0%
1,964
1,733
2,556
Registered office outside the EU
28.3
28.8
21.3
Porsche Leipzig GmbH
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
11.7
15.5
21.8
Porsche AG
11.8
17.0
23.5
Porsche Leipzig GmbH
10.2
1,095
10.1
Other Group companies
13.9
8.1
21.7
Employees exempt from wage agreements and executive employees
19.2
19.9
20.6
Porsche AG
19.1
20.2
20.3
11.8
1,484
1,434
Total
Percentage breakdown of participations by employee category
Employees subject to wage agreements
85.9%
85.0%
87.3%
Employees exempt from wage agreements and executive employees
14.1%
15.0%
12.7%
2021
2020
2019
Newly hired employees by region, gender and age group
No. of newly hired employees by region
Region: Germany
Region: Europe (excluding Germany)
Region: North America
Region: Asia
Other regions (Australia, Latin America)
1,553
180
2,221
3,684
96
127
Total no. of training programme participations
110
87,238
101,530
171,284
Male
4,410
4,354
1 Due to equal pay and the framework conditions, Porsche does not report the number of temporary employees separately.
2 Definition of full-time employee: full-time employees are all employees with a contractually agreed weekly working time of at least 35 hours.
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.
Non-financial key figures
247
248
Employee turnover in %1
2021 V
2020
2019
78
No. of training programme participations
2020
2019
Proportion of employees who left the company
2.4%
2.1%
1.9%
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.
Total number of participations
Female
210,611
39,327
125,297
23,767
107,294
20,056
2021
33,512
853
1,917
31,075
36
93
107,294
Parental leave and return to the workplace
No. of employees who took parental leave¹
Total
2021
2020
2019
Average number of training hours per participant
2021
2020
2019
1,534
1,523
1,322
Female
350
281
243
Total
Female
Male
No. of employees returning after parental leave 2
1,184
1,242
1,079
125,297
210,611
1,819
71
94
57
12
16
20
2021
No. of newly hired employees by gender
Female
586
453
679
2020
Male
100
1,369
3,245
No. of newly hired employees by age group
< 30 years
810
1,259
2,034
2019
30-50 years
1,076
1,151
> 50 years
69
2,051
2.4%
2.5%
2.6%
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)
123.29 V
105.29
115.40
0.98
Production sites
123.29
105.29
115.40
1.0
Development sites
0
0
0
Other sites
0
0.36
0
0.18
Production sites
50,774
69
10
11,303
15,415
13,701
0
2014 2015
2016 2017 2018
41.75
33.06
2019 2020 2021
42.67
33.99
26.2
33.82
7.60
6.68
8.62
0.16
0.18
0.23
0.31
0.24
0.45
0.24
0
Weight of dust emissions
0.27
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.
Total direct and indirect GHG emissions in t of CO2 equivalent
2021
2020
2019
0.4
0.2
9,090 ✓
26,971
0
57,685
Non-financial key figures
2014
2015
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
4 The NOx emissions shown here refer exclusively to production processes, and not to Porsche vehicles.
3 Emissions are generally only produced from local travel, as 100 per cent use is made of green electricity for long-distance travel.
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.
0.6
0.22
0.14
Production sites
0.22
0.18
0.11
0.8
Development sites
0.81
0.74
0.05
0.04
8,402
0.03
Ozone-depleting substances 5
0
0
0
0
0
0
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.
0.64
0.65
0.66
0.59
0.58
Other sites
6,807
38
0
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
Direct and indirect GHG emissions in t of CO2 equivalent
Total
9,090 ✔
26,971
57,685
1,009
Production sites
2,895
12,167
42,123
1,000
Development sites
4,959
13,744
14,412
2016 2017
2015
2014
0
1,637
1,748
4,000
3,757
0
9
14,081
10,884
12,105
2,046
Heating oil
3,226
Gas
72,811
Other sites
Biogas as combustible gas
for manufacturing processes
269,750
Biogas
3,000
2,000
1,000
3,185
3,008
2,952
2,763
2,607
2,673
2,485
Direct energy
consumption by
production site
in 2021
2019
1,236
1,150
506
966
762
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
Significant air emissions in t of
NOx emissions 4
Production sites
Development sites
Other sites
SOx emissions
27,574
9,464
0
28,753
4,936
74,157
239
246
239
250
9,644
552
398
Other sites
Development sites
Direct GHG emissions in t of CO2 equivalent (Scope 1)¹
7,656 V
839
851
25,656
56,267
Production sites
2,825
12,166
42,038
750
Development sites
1,060
4,561
13,906
Other sites
270
298
323
Indirect GHG emissions in t of CO2 equivalent (Scope 2)
Production sites
1,434 v
1,315
1,418
70
85
500
13,192
Water intake 1
Total
Total
61
167
335
458
124
1
15
44
74
99
0
0
0
1 Recycling and disposal of the reported hazardous and non-hazardous waste are exclusively carried out by external disposal companies.
Total volume of waste in t
2021
241,883
Steel/cast iron
2020
157,965
Alloys
2019
Non-financial key figures
200
21,755 V
20,787
22
5
Non-production-specific waste
Non-hazardous waste
340
434
637
244
2
1
0
Material consumption in t
2014
2015
2016
2017 2018
23,995
2019 2020
74,716
Others
112,697
Plastics
15,998
Copper
Material consumption
in 2021
Hazardous waste
Non-hazardous waste
Non-production-specific waste
Metallic waste
Waste for removal
Hazardous waste
2021
16
3
245
10.9%
10.7%
Total
Of which Porsche AG
Of which Porsche Leipzig GmbH
Of which other Group companies
Region: Germany
36,996
36,359
35,429
Of which male
48.7%
50.7%
49.4%
22,379
22,290
21,371
> 50 years
17.9%
17.5%
17.0%
4,309
4,194
4,260
Of which female
11.3%
60.1%
61.6%
60.0%
246
PERSONNEL AND SOCIAL KEY FIGURES
Unless specified otherwise, the listed key figures relate to the Porsche AG Group (including subsidiaries).
Employees by age structure in %
2021
2020
2019
Porsche AG Group
Total workforce (number of employees)
2021 V
2020
2019
0
< 30 years
Of which male
30-50 years
Of which female
22.1%
20.9%
22.9%
4.5%
4.7%
5.2%
17.6%
16.2%
17.7%
Of which female
0
3
58
1,058
Metallic waste
Waste for removal
21,755 V
20,787
23,995
16,143
13,556
16,202
4,481
4,080
5,183
7,376
5,394
7,365
705
298
341
2,604
3,027
2,674
624,597 V
577,026
603,759
Hazardous waste
885
Non-production-specific waste
Non-hazardous waste
Hazardous waste
Waste for recycling
758,443 ✓
Of which water from third parties
756,783
710,237
701,308
694,992
690,066
Production sites
Of which groundwater
Production sites
Development sites
Other sites
Water recirculation²
Total
630
Production 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
553,267
100,461
5,743
111,857
128,437
9,619
13,288
Development sites
9
346
79,069
Metallic waste
2,196
3,130
176
3,196
Water consumption of the production sites in m³/vehicle
Hazardous waste
4
3
3.82
3.32
Other sites
3.26
3.05
3.07
3.17
3.05
Waste for recycling
2.73
Waste for removal
Non-hazardous waste
Non-production-specific waste
30
18
731
743
57
89
Non-production-specific waste
1,666
491,679
75,728
509,098
Non-hazardous waste
80
90
241
81,373
Non-production-specific waste
12
37
52
5,743
539,785
9,619
Development sites
5,272
6,797
7,156
Waste for recycling
Hazardous waste
1,280
1,686
986
Non-hazardous waste
937
1,160
13,288
0
2021
185
9.6
218
10.9-10.3
247-234
G
Cayenne Platinum Edition
250
340 11.5-11.2
8.2-8.1
8.2-8.1
911 Carrera Cabriolet
283
385
12.7
8.0
9.7
221
10.8-10.5
246-238
F
Cayenne Coupé
250
340
11.7-11.4
8.3-8.2
911 Carrera 4S
7.8
331
12.6
283
331
450
13.1
7.9
9.8
223
11.0-10.6
250-241
G
Cayenne
911 Carrera S Cabriolet (MT)
331
450
14.7
7.4
10.1
230
10.7-10.3
243-233
G
Cayenne
250
340
11.5-11.2
911 Carrera 4
385
450
13.1
7.8
D
911 Carrera 4S Cabriolet
331
450
13.3
7.9
9.9
225
11.1-10.7
252-242
G
Cayenne S Platinum Edition
324
440
12.8
8.0-7.8
9.8-9.7
223-220 12.9-12.1
283-266
292-268
292-274
D
E-D
E-D
911 Carrera 4S Cabriolet (MT)
331
450
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
9.7
222
11.1-10.5
253-239
G
Cayenne Coupé Platinum Edition
250
340
11.7-11.4
8.3-8.2
911 Carrera 4S (MT)
331
911 Carrera S Cabriolet
450
7.4
10.1
231
10.8-10.2
245-231
G
Cayenne S
324
440
12.8
8.0-7.8
9.4-9.2
9.4-9.2
9.5-9.4
9.5-9.4
9.8-9.7
14.8
G
243-229
10.7-10.1
D
D
D
D
D
D
F
F
E
F
E
718 Cayman GTS 4.0 (PDK)
294
400
13.0
7.6
9.6
219
10.1
230
G
Macan
Macan
911
911 Carrera
283
385
D
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
368
500
17.4
9.3
12.3
281
13.2
299
G
Panamera Turbo S Executive
463
630
12.9
718 Cayman GTS 4.0
400
14.7
2
10.8
246
10.9
247
G
Panamera Turbo S Sport Turismo
463
630
15.5-15.4
14.9-14.8
15.1-15.0
15.0-14.9
294
14.9
7.4
215
265
10.8
280
380
12.3
324
440
12.3
7.6-7.4
7.6-7.5
8.4
8.4
8.8-8.7
8.8-8.7
9.9-9.8
9.9
10.7-10.1
10.7-10.1
200-198
200
225-224 11.7-11.1 265-251
225 11.7-11.3
243-228
242-229
D
D
E
265-255
E
911 Carrera S (MT)
331
450
14.5
7.3
10.0
227
195
10.9-10.8
265
195
10.8-10.3
245-233
G
Macan T
911 Carrera Cabriolet
283
385
12.9
7.6
9.6
218
10.8-10.4
9.4
245-236
Macan S
911 Carrera S
331
450
12.9
7.7
9.6
220
11.1-10.5
251-238
G
Macan GTS
G
7.5
10.2
234
9.8
223
10.9-10.5
247-239
F
911 Targa 4S
331
450
13.3
8.0
9.9
227
11.1-10.7
253-244
G
911 Targa 4S (MT)
331
450
15.0
7.6
10.3
235
10.8-10.4
246-236
G
8.0
12.8
385
283
11.9
271
14.1
319
F
911 Carrera 4 GTS Cabriolet
353
480
13.7
7.7
9.9
226
911 Targa 4S Heritage Design Edition
11.3-11.0
G
911 Carrera 4 GTS Cabriolet (MT)
353
480
15.4
7.8
10.6
242
11.1-10.8
251-244
G
911 Targa 4
256-249
9.1
331
13.3
7.8
10.7
911 Targa 4 GTS
353
480
13.7
7.7
9.9
911 Targa 4 GTS (MT)
353
480
15.5
7.8
10.7
243 11.1-10.8
227 11.3-11.0
243 11.1-10.8
252-245
G
257-251
F
252-245
G
Current consumption figures can be found at
7 www.porsche.com/germany/verbrauchsinformationen
Further information
257
15.5
480
353
911 Edition 50 Years Porsche Design (MT)
8.0
9.9
227
11.1-10.7
253-244
G
911 Targa 4S Heritage Design Edition (MT)
331
450
15.0
7.6
10.3
450
235
246-236
G
911 Edition 50 Years Porsche Design
353
480
13.7
7.7
9.9
227
11.3-11.0
257-251
F
10.8-10.4
718 Cayman GT4 RS
16.6
471
15.1
7.4
10.3
234
11.0-10.4
249-236
G
Cayenne Turbo
404
550
15.5
9.3
9.9-9.7
11.6
911 Carrera GTS Cabriolet
353
480
13.5
7.7
9.8
224
11.3-10.9
256-248
G
Cayenne Turbo Coupé
404
480
353
911 Carrera GTS (MT)
8.2 7.9
10.8-10.4
245-235
G
Cayenne S Coupé
324
440
12.8
8.2-7.9
9.9-9.7
225-222 12.9-12.0
292-271
D
550
911 Carrera GTS
480
13.4
7.5
9.7
221
11.4-10.7
258-244
G
Cayenne S Coupé Platinum Edition
324
440
12.8
353
640
15.5
11.6
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
319-305
F
14.1-13.5 319-307
14.0-13.3
14.1-13.3
F
318-302
F-E
319-301
F
911 Carrera 4 GTS (MT)
353
480
15.3
7.7
10.5
240
11.1-10.6
252-240
G
Cayenne Turbo GT
15.3-14.7
460
338
Cayenne GTS
911 Carrera GTS Cabriolet (MT)
353
480
15.1
7.7
10.4
238
10.9-10.5
246-239
G
Cayenne GTS Coupé
338
9.3
460
9.1
11.4-11.2
911 Carrera 4 GTS
353
480
13.5
7.6
9.7
222
11.4-10.8
259-245
G
15.3-14.9
630
8.5
Panamera Turbo S
Fuel
Fuel
Power output Power
[kW]
[PS]
consumption
urban
[1/100 km]
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
718 Boxster
718 Boxster (PDK)
911
220
300
11.8
6.9
8.7
199
220
300
10.6
6.6
8.1
Fuel
185
Fuel
NEDC
Responsible Manager for Tariff Policy
Carsten Schumacher
Chairman of the Works Council Weissach
Member of the General and Group Works Councils of Porsche AG
Jordana Vogiatzi
Manager responsible for Members and Finances
of IG Metall Union, Stuttgart
254
256
EMISSION AND CONSUMPTION INFORMATION1
Model
NEDC
WLTP
Fuel
Power output
[kW]
Power
[PS]
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]
combined
[1/100 km]
CO2 emissions Energy
combined efficiency
[g/km]
class
Model
WLTP
9.7-9.4
9.2-8.9
718 Boxster S
257
283
13.0
294
F
911 GT3 (MT)
375
510
19.2
463
13.3
304
12.9
293
G
G
G
911 GT3 with Touring Package (PDK)
375
510
17.3
9.5
12.4
283
12.9
293
G
12.4
9.5
17.3
510
350
12.9
7.6
9.6
218
10.4-10.1
718 Boxster S (PDK)
257
350
12.4
7.0
8.8
Trade Union Secretary of IG Metall -
200
718 Boxster T
220
300
11.8
7.0
8.8
200
9.7-9.4
220-212
209-201
235-229
224-218
219-213
G
911 GT3 (PDK)
375
9.9-9.6
Stefan Schaumburg
Vice President Human Resources Zuffenhausen
Vera Schalwig-Kaufmann
96.0%
Registered office
in the EU
Suppliers
of non-production
materials
1 Based on creditor's billing address.
Percentage spend with local suppliers by Porsche AG at main places of business 1
Porsche AG
Porsche Leipzig GmbH
5.7
2.9
6.1
4.0
6.1
2021
4.6
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.
2020
Donations made in € million
2021
2019
1 Local suppliers are defined as suppliers with their registered office in the EU. The main places of business are Stuttgart-Zuffenhausen and Leipzig.
Percentage degree of fulfilment of highest quality standards based on purchasing volume¹ ✓
approx. 11.8 V
0%
20201
approx. 21
2019
approx. 4.6
1 Of which, donations totalling 2 million euros in foundation assets for the Ferry Porsche Foundation.
Suppliers
of production materials
Registered office outside the EU
1.0%
2019
191
Lost days 3
1,767
1,440
188
2,362
Fatalities
0
0
2
Porsche Leipzig GmbH
Accidents²
Lost days 3
69.0%
2021 status
Fatalities
23
293
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.
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).
Injury rate¹
2021
2020
18
197
0
G
90.0%
2030 target
97.4%
Dr Arno Antlitz
Member of the Volkswagen AG Board of Management -
Finance
Dr Christian Dahlheim
Director Group Sales Volkswagen AG
Thomas Schmall-von Westerholt
Member of the Volkswagen AG Board of Management -
Technology
Hiltrud Werner
Member of the Volkswagen AG Board of Management -
Integrity and Legal
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
Member of the General and Group Works Councils of Porsche
Wolfgang von Dühren
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
Knut Lofski
Chairman of the Works Council Porsche Leipzig
Member of the Group Works Council of Porsche AG
Chairman of the Board of Management of Porsche Automobil Holding SE
Chairman of the Supervisory Board of Volkswagen AG
Hans Dieter Pötsch
Member of the Board of Management of Porsche Holding GmbH
Dr Hans Peter Schützinger
97.5%
99.0%
Registered office
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
The Supervisory Board
Emission and consumption information
GRI content index
TCFD index
97.0%
Porsche AG Group - brief overview
THE SUPERVISORY BOARD
of Porsche AG
on 31 December 2021
Shareholder representatives
Dr Wolfgang Porsche
Diplom-Kaufmann
Chairman of the Supervisory Board
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
Independent auditor's report
911 GT3 with Touring Package (MT)
9.9
510
11.8
6.9
8.7
200
718 Cayman T (PDK)
220
300
10.8
6.5
8.1
185
718 Cayman S
257
350
13.0
7.5
9.6
218
9.7-9.3
9.2-8.9
9.6-9.4
9.1-8.9
10.3-10.1
220-212
G
Panamera 4 Sport Turismo
243
330
11.4-11.2
300
7.8-7.5
220
185
7.5-7.0
7.3-7.1
Panamera 4 Platinum Edition
243
330
11.6-11.4
7.3-7.1
718 Cayman
Panamera 4 Executive
243
330 11.3-11.0
7.6-7.4
8.8-8.6
8.8-8.7
8,8-8,7
9.0-8.9
718 Cayman
220
300
11.8
6.9
375
199
718 Cayman (PDK)
220
300
10.6
6.6
8.1
718 Cayman T
718 Cayman S (PDK)
257
350
480
15.4
718 Cayman GT4
309
420
15.0
8.5
10.9
249
11.1
251
G
Panamera GTS Sport Turismo
353
480
718 Cayman GT4 (PDK)
309
420
13.7
8.1
10.2
232
10.7
242
G
353
Panamera GTS
G
11.7-11.5
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
11.4-11.2
G
330 11.6-11.4
Panamera 4S
440
11.6-11.3
F
Panamera 4S Executive
324
440
11.9-11.6
7.8-7.5
7.5-7.4
7.6-7.5
G
Panamera 4S Sport Turismo
324
440
324
243
8.7
G
15.2
8.9
11.3
718 Spyder
309
420
15.0
Panamera 4
10.9
249
11.1
251
G
911 Turbo S
478
650
15.5
8.6
11.1
718 Spyder (PDK)
309
420
13.7
8.1
10.2
580
427
911 Turbo Cabriolet
F
19.1
10.0
13.3
304
12.9
292
G
G
911 Turbo
427
580
15.3
232
8.7
254 12.3-12.0
279-271
G
718 Boxster T (PDK)
220
300
10.9
6.5
8.1
185
9.2-8.9
208-202
11.1
10.7
8.5
G
10.1
230
G
Panamera
Boxster 25 years
294
400
14.7
8.5
10.8
246
10.9
219
247
Panamera
243
242
Boxster 25 years (PDK)
294
400
13.0
7.6
9.6
219
10.1
230
G
9.6
330 11.4-11.1
13.0
7.6
911 Turbo
Cabriolet
478
650
15.9
11.3
257 12.5-12.1
254 12.3-12.0 278-271
257 12.5-12.1 284-275
284-275
G
G
G
718 Boxster GTS 4.0
8.6
400
294
294
718 Boxster GTS 4.0 (PDK)
400
247
G
246
10.8
8.5
14.7
10.9
Project team
Gundula Maronde, Director Communications Strategy and Reputation
Cristian Aleo, Coordinator Sustainability Reporting
Kristin Bergemann, Head of Corporate Communications Porsche Leipzig GmbH
Jana-Kristin Jessen, PR Specialist Site Communications Weissach
Site Communications
Ben Weinberger, Spokesperson Macan, Cayenne and Panamera
Nadine Toberer, Spokesperson Design, Lifestyle and Brand Communications
Christoph Lungwitz, Spokesperson Innovations (acting)
Jan Klonz, PR Specialist Connected Car and Future Technologies
Stefan Mayr-Uhlmann, Spokesperson Finance, Digital and IT
Jonas Bierschneider, PR Specialist Model Series 911 and 718
Hermann-Josef Stappen, Spokesperson Research and Development, Technology Communications
Matthias Rauter, Spokesperson Human Resources and Funding Projects
Nadescha Vornehm, Spokesperson Sales and Marketing
Peter Gräve, Spokesperson VW Group Affairs, Corporate Strategy and Procurement
Christian Weiss, Manager Corporate and Brand Communications, Spokesperson Production
and Crisis Communications
Corporate and Product Communications
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
Anja Wassertheurer, Director Corporate and Product Communications
Oliver Hilger, Spokesperson Model Series 911 and 718
Conceptualised by
Meiré und Meiré
Getty Images (p. 14 and p. 88)
Proofreading
6,416
Frank Scholtys, Manager Strategy, Planning and IR
7 www.newsroom.porsche.com/reports
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)
AA+W, Adobe Stock (p. 31)
Getty Images (p. 23)
Catherine Delahaye/Digital Vision,
Mischa Keijser/Image Source,
Maskot, Getty Images (p. 11)
External image rights
Lessebo Design Smooth Bright
Römerturm JUPP ECH ÖKO
Römerturm EXTRACT PITCH
Paper
Druckerei Vogl GmbH & Co. KG
Printing
Publication Partners
Medienkompetenz GmbH
Post-production
Siham Schahadat, copyedit24
Art direction
Meiré und Meiré
Strategy, Planning and IR
€ million
Daniela Rathe, Director Politics and Society
516-604
417-498
0
24.7-21.0
0
26.1
571
420
Taycan 4S Sport Turismo with Performance battery Plus
A+++
449-534
358-441
0
24.6-20.4
0
25.7
530
390
Taycan 4S Sport Turismo with Performance battery
A+++
389-464 437-524
0
26.0-21.9
A+++
0
Taycan 4S Cross Turismo
571
24.1-21.0
0
26.0
598
440
Taycan GTS Sport Turismo
A+++
539-625
439-504
0
23.3 20.3
0
25.9
598
440
Taycan GTS
A+++
462-532
388-452
0
26.4-22.6
0
28.1
420
0
27.0
420
0
0
24.2-20.2
0
26.8
408
300
Taycan Sport Turismo with Performance battery
25.4-21.5
0
28.7
476
350
Taycan with Performance battery Plus
0 354-431 382-450
24.8-20.4
0
28.0
408
300
Taycan with Performance battery
Taycan
class
efficiency
Taycan Sport Turismo with Performance battery Plus
571
350
27.4
Taycan 4S with Performance battery Plus
A+++
383-466
A+++
A+++
A+++
A+++
A+++
463-541
407-484 460-521
358-433 433-518
417-492 493-563
389-456
335-408
0
25.6-21.0
0
26.2
530
390
Taycan 4S with Performance battery
0
26.4-22.4
0
28.1
476
350
Taycan 4 Cross Turismo
0
24.6-21.0
0
476
urban
[km]
424-490
A+++
Porsche Newsroom:
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
Financial assistance received from government
201-4
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
Direct economic value generated and distributed
201-1
GRI 201: Economic Performance (2016)
Material topics
2022
DISCLOSURES SERVICE
GRI
MATERIALITY
GRI CONTENT INDEX
260
259
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.
1 Note
Further information
7 www.porsche.com/germany/verbrauchsinformationen
Current consumption figures can be found at
A+++
460-495
A+++
www.newsroom.porsche.com/reports
518-565
GRI 204: Procurement Practices (2016)
GRI 205: Anti-corruption (2016)
Scale of the organization
102-7
Markets served
102-6
Ownership and legal form
102-5
Location of operations
102-4
Location of headquarters
102-3
102-2
102-1
Activities, brands, products, and services
Name of the organization
Organizational profile
GRI 102 General Disclosures (2016)
GRI 101 Foundation (2016)
General Disclosures
GRI standards
GRI 206: Anti-competitive Behavior (2016)
Communication and training about anti-corruption policies and procedures
205-2
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
205-1 Operations assessed for risks related to corruption
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
204-1 Proportion of spending on local suppliers
524-616
430-458
388-419
26.4-24.4
Taycan Turbo S Sport Turismo
Taycan Turbo S Cross Turismo
Taycan Turbo S
Taycan Turbo Cross Turismo
A+++
531 620
424-491
0
24.2-20.9
0
26.3
680
500
Taycan Turbo Sport Turismo
A+++
432-498
383-452
0
26.6-22.9
0
28.0
680
500
Taycan Turbo
500
0
680
0
0
29.4
761
560
0
24.0-22.5
0
26.3
761
560
A+++
434-477
390-416
0
25.6-24.3
0
28.5
761
560
A+++
438-510
0 395-452
25.9-22.6
28.7
Power
consumption CO₂ emissions Electric range Electric range Energy
combined combined combined
[kWh/100km] [g/km]
[km]
[kWh/100 km] [g/km]
CO₂ emissions
combined
2.2-2.0
560
412
A+++
51-55
47-54
60-49
24.9 23.1
2.7-2.1
51-49
18.2-17.5
2.3-2.2
462
340
A+++
50-55
48-55
59-47
24.6-22.8
2.6-2.1
51-49
18.0-17.4
2.2
18.1-17.4
462
51-47
24.5-22.6
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
412
Panamera 4S E-Hybrid Sport Turismo
48-52
46-51
65-54
2.9-2.4 24.6-23.0
53-50
19.5-17.6
2.3-2.2
560
412
Panamera 4S E-Hybrid Executive
A+++
49-54
46-53
64-50
2.8-2.2
52-49
340
52-56
[1/100 km]
[kWh/100 km] [g/km]
[1/100 km]
[PS]
Electric range urban
weighted
combined
combined
combined
weighted
weighted
CO₂ emissions
combined
combined
consumption
Electric range
consumption consumption CO₂ emissions
Power
Fuel
consumption
combined
Power output Power
[kW]
Power
Fuel
WLTP
NEDC
Model
[kWh/100 km] [g/km]
A+++
(EAER)
[km]
Energy
efficiency
class
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
2.2-2.1
2.2-2.1
462
340
462
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
(EAER city)
[km]
3.0-2.4 24.9-23.1
67-55
45-50
680
500
Cayenne Turbo S E-Hybrid
60-58
22.4-22.0
2.6-2.5
462
340
Cayenne E-Hybrid Coupé Platinum Edition
A+++
43-47
41-43
85-73
3.7-3.2 26.5-25.4
60-58
2.6-2.5 22.4-22.0
462
340
Cayenne E-Hybrid Coupé
A+++
44-46
41-43
83-75
3.3-3.2
A+++
23.3-22.8
500
combined
Power
[PS]
Power output
[kW]
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
3.7-3.3 26.5-25.6
4.0-3.8 25.9-25.3
4.1-3.8 25.9-25.4
75-72
76-73
23.5 23.0
3.3-3.2
680
Cayenne Turbo S E-Hybrid Coupé
44-48
41-44
83-71
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
700
515
Panamera Turbo S E-Hybrid
51-55
47-54
60-49
2.7-2.1 24.9-23.1
51-49
49-53
Panamera Turbo S E-Hybrid Sport Turismo
515
700
2.8
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
462
340
Cayenne E-Hybrid Platinum Edition
58-56
22.0-21.6
2.5-2.4
462
340
102-8
Cayenne E-Hybrid
A+++
49-50
46-47
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
22.8
Cayenne
Plug-in hybrids
Information on employees and other workers
102-10 Significant changes to the organization and its supply chain
7 Consumption of resources and recycling in production, pp. 98-99
> Production decarbonisation, p. 97
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":
> Decarbonisation, p. 90
> Environmental and energy key figures, pp. 240-245
Porsche does, however, measure material contributions in the area of climate-related opportunities and risks as part of its
sustainability and environmental management:
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.
Disclose the metrics used by Porsche to assess climate-related risks and opportunities in line with its strategy and
risk management process:
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.
By definition, all of the processes for identifying, assessing and managing climate-related risks are part of Porsche's
risk management.
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into Porsche's
overall risk management:
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.
Describe management's role in assessing and managing climate-related risks and opportunities:
Climate-related risks are addressed by the relevant departments depending on the content, with risk management measures
then being implemented.
Describe Porsche's processes for managing 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 identifying and assessing climate-related risks:
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 the board's oversight of climate-related risks and opportunities:
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.
TCFD INDEX
264
263
7 Environmental and energy key figures, pp. 240-245
Further information
Impacts of climate-related risks and opportunities on strategy, operating activities and financial planning:
7 Sustainability strategy, pp. 78-79
34,328
38,464
Units
911
280,800
272,162
301,915
Units
Deliveries
2019
2020
2021
BRIEF OVERVIEW
PORSCHE AG GROUP
266
265
Further information
7 Decarbonisation, p. 90
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
Describe the targets used by Porsche to manage climate-related risks and opportunities and performance against targets:
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 resilience of the organization's strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario:
7 Decarbonisation, p. 90
Strategy 2030, pp. 72-74
34,800
→ Online GRI index
126-127, 131-132
→ Online GRI index
126-127, 131-132
Significant investment agreements and contracts that include human rights clauses
→ Online GRI index
126-127,131-132
126-127, 131-132
Employee training on human rights policies or procedures
412-3
412-2
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 412: Human Rights Assessment (2016)
→ 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
→ Online GRI index
126-127, 131-132
126-127, 131-132
→ Online GRI index
114-119
112-113
112-113
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 409: Forced or Compulsory Labor (2016)
or that underwent human rights screening
Non-compliance with laws and regulations in the social and economic area
GRI 414: Supplier Social Assessment (2016)
414-1
→ Online GRI index
128-129
128-129
134
134
84
84
131-132
131-132,251
131-132
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
419-1
GRI 419: Socioeconomic Compliance (2016)
Substantiated complaints concerning breaches of customer privacy and losses
of customer data
418-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 418: Customer Privacy (2016)
Assessment of the health and safety impacts of product and service categories
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
416-1
GRI 416: Customer Health and Safety (2016)
Political contributions
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
415-1
GRI 415: Public Policy (2016)
Negative social impacts in the supply chain and actions taken
New suppliers that were screened using social criteria
414-2
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
Operations and suppliers at significant risk for incidents of child labor
718 Boxster/Cayman
20,502
€ million
Fixed assets
Equity
Total assets
28,518
28,695
33,138
€ million
Sales revenue
Financials
4,003
4,230
4,478
€ million
Personnel expenses
35,429
36,359
36,996
number
Employees 2
1,386
29,450
38,474
51,382
Units
45,491
€ million
Cash flows from operating activities
3,044
3,357
3,214
€ million
Depreciation, amortization and impairment losses
15,956
16,661
19,363
€ million
Cost of materials
2,993
2,772
3,043
€ million
Investment 3
17,982
18,130
19,793
€ million
17,428
20,224
22,935
42,366
Units
31,192
33,250
Production
813
20,015
41,296
Units
Taycan
32,721
25,051
30,220
Units
Panamera
92,055
92,860
83,071
Units
Cayenne
99,944
78,124
88,362
Units
Macan
20,467
21,784
Units
21,832
300,0811
274,463
Units
Taycan
Panamera
95,293
82,137
86,233
Units
Cayenne
89,744
78,490
84,857
Units
Macan
19,263
22,655
18,477
Units
718 Boxster/Cayman
37,585
28,672
38,790
Units
911
263,236
408-1
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
GRI 408: Child Labor (2016)
82-84
244
244
98-99
98-99
244
303-3 Water withdrawal
303-4 Water discharge
303-5 Water consumption
→ Online GRI index
Online GRI index
→ 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
78-81, 126-129, 131-132
→ Online GRI index
126-127
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
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
4-5,80-81,254
GHG emissions intensity
305-4
Other indirect (Scope 3) GHG emissions
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)
304-3 Habitats protected or restored
GRI 304: Biodiversity (2016)
242
126-127
value distributed.
102-47 List of material topics
102-46 Defining report content and topic Boundaries
102-45 Entities included in the consolidated financial statements
Reporting practice
102-44 Key topics and concerns raised
102-43 Approach to stakeholder engagement
102-42 Identifying and selecting stakeholders
102-41 Collective bargaining agreements
102-40 List of stakeholder groups
Stakeholder engagement
102-21 Consulting stakeholders on economic, environmental, and social topics
102-20 Executive-level responsibility for economic, environmental, and social topics
102-19 Delegating authority
102-18 Governance structure
Leadership
102-17 Mechanisms for advice and concerns about ethics
102-16 Values, principles, standards, and norms of behavior
Ethics and integrity
102-14 Statement from senior decision-maker
Strategy
102-13 Membership of associations
102-12 External initiatives
102-11 Precautionary principle or approach
102-48 Restatements of information
→ Online GRI index
102-49 Changes in reporting
102-51 Date of most recent report
131-132
251
Porsche reports comprehensive
216-237 financial key figures and the economic
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
102-55 GRI content index
102-54 Claims of reporting in accordance with the GRI Standards
102-53 Contact point for questions regarding the report
102-52 Reporting cycle
102-50 Reporting period
243
242-243
242
242
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
Hazard identification, risk assessment, and incident investigation
Occupational health services
403-3
403-2
118-119
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
GRI 403: Occupational Health and Safety (2018)
Minimum notice periods regarding operational changes
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
402-1
Promotion of worker health
GRI 402: Labor/Management Relations (2016)
118-119
Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships
Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
407-1
GRI 407: Freedom of Association and Collective Bargaining (2016)
Diversity of governance bodies and employees
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
405-1
GRI 405: Diversity and Equal Opportunity (2016)
116-117
Programs for upgrading employee skills and transition assistance programs
404-2
249
Average hours of training per year per employee
404-1
114-117
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
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).
Porsche does not make a distinction
GRI 404: Training and Education (2016)
Work-related injuries
403-9
118-119
Workers covered by an occupational health and safety management system
403-8
118-119
403-7
Material topics
262
261
2
2
2
2,86
86-87
2,86-87
245
245
Maximilian Steiner, Coordinator Stakeholder Management
245
Waste generated
80, 82-83,86
82-83,86-87
306-3
98-99
306-2
98-99
306-1
→ Online GRI index
118
82-83
98-99
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
82-83,86
GRI 306: Waste (2020)
271
2,260
260-262
2,268-269
114-119
248
248
131-132
131-132,251
131-132
→ Online GRI index
97,126-127
For reasons of confidentiality,
Porsche doesnot publish the
required information.
Further information
New employee hires and employee turnover
Parental leave
401-3
401-1
102-9 Supply chain
GRI 103: Management Approach 2016 (incl. 103-1, 103-2, 103-3)
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
Waste generation and significant waste-related impacts
Management of significant waste-related impacts
GRI 401: Employment (2016)
258
306-4
Responsibilities of the auditor
3,166
2,801
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.
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
4,038
Further information
267
INDEPENDENT AUDITOR'S REPORT
on a limited assurance engagement
The assurance engagement performed
by Ernst & Young (EY) relates exclusively
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.
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.
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
€ million
4,397
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.
4,140
4,486
Operating profit (EBIT)
€ million
5,314
4,177
4,054
3,862
€ million
5,284
4,177
4,397
Profit before tax
€ million
5,729
Operating profit (EBIT) before special items
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.
Profit after tax
We have complied with the German profes-
sional requirements on independence as well
as other professional conduct requirements.
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
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.
Restriction of use
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.
Reconciliation of data with the correspond-
ing data in the annual financial statements.
Assurance conclusion
• Critical review of the draft report to assess
plausibility and consistency
Analytical procedures at the level of
the Group regarding the quality of the
reported data
with the respective third party or liability
cannot effectively be precluded.
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
• Identification of likely risks of material
misstatement
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,
⚫ Gain an understanding of the structure
of the Group's sustainability organization
and stakeholder engagement
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 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.
Independence and quality assurance of
the auditor's firm
Inspection of the relevant documentation
of the systems and processes for com-
piling, aggregating and validating data,
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.
• Evaluation of the presentation of the
selected key disclosures that are marked
with the symbol "V" in the report
Event and Sports Communications
Munich, 28 February 2022
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
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.
Politics and Society
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
Marc Lieb, Team Leader Sports Communications
Thomas Hagg, Director Event and Sports Communications
Contact persons
Dr Sebastian Rudolph, Vice President Communications, Sustainability and Politics
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
Tel. +49 711 911-0
D-70435 Stuttgart
Dr. Ing. h.c. F. Porsche AG
Publisher
LEGAL NOTICE
269
Further information
268
Nicole Richter, Wirtschaftsprüferin
[German Public Auditor)
Hans-Georg Welz, Wirtschaftsprüfer
(German Public Auditor)
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.
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.
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.
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.
Panamera 4S
Porsche "electrifies" its managers
PORSCHE
Climate action day
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.
a second site in Romania in
June. The company is further
expanding its innovation
network with a new research
and development office in
Timişoara.
20
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
ON A PORSCHE SAFARI WITH THE BEEKEEPER
FLEXIBILITY THANKS TO MOBILE WORKING
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.
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.
Porsche Engineering opened
MACAN DEVELOPMENT DRIVE WITH CAMOUFLAGED VEHICLES
20
19
PORS
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 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
TAG
HEUE
PORSCHE
PORSCHE
ANDRÉ LOTTERER IN THE PORSCHE 99X ELECTRIC
LOT
BOSS
36
36
BOSS
PORSCHE
MICHELIN
Maxxisctric
Mobil
L
Clear commitment to Formula E
Porsche will compete in the ABB FIA
Formula E World Championship again in
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.
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
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.
Important events
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.
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.
S&GO 604E
a grazing concept since 2002.
The site comprises a total of
132 hectares.
enelx enelx enex enex PER FER
enelx enelx enel x enel x enelx enelx enex crex xx
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.
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
Porsche has been applying
The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
S GO 6302
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.
Important events
30
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."
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.
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.
enel x
enely
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.
UTATTACK MODE
All-electric on the streets of Brooklyn
37
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
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 celebrated
the 25th anniversary of
Manthey-Racing GmbH with
an extra special model - the
911 GT2 RS Clubsport 25.
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
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.
HANNES AMETSREITER AND MICHAEL STEINER SWITCHED ON THE 5G NETWORK IN WEISSACH
S 5G 2021
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.
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
ANDRÉ LOTTERER IN THE PORSCHE 99X ELECTRIC ON THE BROOKLYN STREET CIRCUIT
PORSCHE, RIMAC AND BUGATTI ESTABLISH JOINT VENTURE
nelx erexenelx pe
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
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
Nordschleife record set by the 911 GT2 RS
In June, Porsche set a new record for road-
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.
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.
23
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
22
THE TALENTED YOUNG PLAYERS OF FC ERZGEBIRGE AUE
14-15
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
in breaking the record in spite of the
hot summer conditions and an asphalt
temperature of 41 degrees.
Sustainability an important factor
23
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
MONNET
TRANSITION TO GREEN ELECTRICITY SUCH AS WIND POWER
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
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.
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.
The latest Cayenne celebrated its premiere in early July. The Cayenne Turbo GT features
First SUV with a GT label - the new Cayenne Turbo GT
S&GO 9988
Turbo GT
Suppliers switch to green electricity
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Porsche invested a high
double-digit million figure
in the new company
Cellforce Group GmbH.
This joint venture with
27
the partner Customcells
sees Porsche moving into
the manufacture of high-
performance battery cells.
Joint venture for high-performance
battery cells
SARAH SIMPSON
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.
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.
MARCO SCHUBERT
Porsche held a themed
week as a signal for tolerance
and against discrimination.
The importance of diversity of
views within the workforce
was emphasised.
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."
Important events
PORSCH
PENLOP
THE DRIVING AND SOUND EXPERTS WHO PERFORMED LIVE IN WEISSACH
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.
Eighteen junior players
from Porsche's youth
development programme
Turbo for Talent received
a Turbo Award for their
exceptional commitment.
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.
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,
VALENTIN SCHÄFFER
40
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".
Mobil
40
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
The Art of Dreams
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
"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.
Turbo forward thinker
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).
38
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-
KUKA
IN THE FINAL, THE LADS FROM RB LEIPZIG BEAT BORUSSIA MÖNCHENGLADBACH
PORSCHE PORSCHE
Porsche Fußball Cup
2021
LUTZ MESCHKE AND SAMI KHEDIRA PRESENT THE TROPHY
Santander
2121 PORS
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.
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
racing cars."
Junior Leipzig players win Porsche
Football Cup
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.
216201
PORSCH
AERIAL VIEW OF THE NEW PORSCHE EXPERIENCE CENTRE IN FRANCIACORTA, ITALY
Important events
39
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 -
KUKA
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.
uvex
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
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
66
PURPLE LIGHT UP INITIATIVE SEES PORSCHE BUILDINGS BEING LIT UP IN PURPLE AS A SYMBOL OF INCLUSION
PORSCHE
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.
in purple to highlight the importance
of inclusion in society.
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.
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
Make-A-Wish
SURF DE
WIR KÖNNEN ES KAUM ERWARTEN, DIR
DEINEN WUNSCH ZU 
ERFÜLLEN
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
UNSERE WUNSCHERFÜLLER FREUEN SICH
SCHON DARAUF DICH 
KENNENZULERNEN
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.
Ein Wunsch ist etwas ganz Besonderes
- Nur für 
dich!
The Federal Association
of Protestant Aid for the
Disabled received
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
THE NEW TRAINEES GAIN INSIGHTS
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
54
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.
SHPA 422E
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.
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
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."
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.
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."
S.RS 982
718 CAYMAN GT4 RS
53
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
62
52
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.
DU DARFST DIR
ETWAS WÜNSCHEN!
GTARS Clubsport
Wir haben tolle gaaanz tolle
Weissach is Porsche's
think tank. There are
6,700 employees working
on innovative and smart
solutions there.
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
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
Wessels
11
Important events
MAXIMILIAN BENECKE'S 911 GT3 CUP IN THE GAME IRACING
11
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
Nachrichten für dich...
Derek Bell and the 14-lap lead
சட்டகம்
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.
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.
Stuck encounters his old love
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
49
Important events
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.
PORSCHE
Вдигов
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.
BOSS
THOMAS LAUDENBACH
BOSS
DUNLO
17 Shell
FRITZ ENZINGER
BOSCY
DANTOS
HANS-JOACHIM STUCK AND HIS RACING CAR, THE 962 C
DUNLOP
DUNLOP
EST
More than twice as many units
as in 2020.
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
billion
Cash flow
from operating activities.
€
36,996
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.
€
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.
Operating profit
(EBIT)
€6.4 billion
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.
66
SPORTS CARS IN EYE-CATCHING COLOURS ARE ESPECIALLY POPULAR IN THE ASIAN MARKETS
EUROPE
€5.7 bilion
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
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).
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.
Important events
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
67
S.TA5133E
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%
Return on sales
This figure significantly exceeds
the strategic target of 15 per cent.
39.4%
Electrified vehicles
Proportion of all deliveries
in Europe.
о
ASIA-PACIFIC, AFRICA AND MIDDLE EAST
2021 financial year in figures
"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.
This figure rose by more than
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.
Goals 2030
CUSTOMERS
LEAD IN CUSTOMER DESIRABILITY
Brand perception #1
→ Customer excitement #1
DRIVE CHANGE FOR A SUSTAINABLE WORLD
→ Balance-sheet CO2-neutral value chain
→ "Best in class" ESG rating
SOCIETY
K72
34
„IN THE BEGINNING,
I LOOKED AROUND AND
COULD NOT FIND QUITE
THE CAR I DREAMED OF.
SO I DECIDED TO BUILD
IT MYSELF."
FERRY PORSCHE (LEFT) WITH HIS SON FERDINAND ALEXANDER
Ferry Porsche
72
S.TA 5123E
PORSCHE
EMPLOYEES
BE THE TOP EMPLOYER OF CHOICE
→ Employee fascination > 85%
THE ICONIC 911 SPORTS CAR IS IN GREAT DEMAND IN THE US TOO
→ Attractive employer: top 3
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."
30 per cent year-on-year.
68
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Important events
69
OUTLOOK
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.
Profit before tax
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.
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
considerably in 2022.
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
in Western Europe as a
whole and in Germany, we
expect to see a noticeable
increase in new registrations
in 2022.
70
SH CA 8989E
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
PORSCHE STRATEGY 2030
A brand for those who follow their dreams
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.
Mission 2030
Vision 2030
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.
THE PORSCHE CAYENNE REMAINS THE MOST POPULAR MODEL IN FRANCE
42
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.
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.
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.
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.
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
Important events
Percentage change in GDP
MANFRED SCHURTI
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.
PRESERVE HIGH PROFITABILITY
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.
PORSCHE
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
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.
THE YARD diill
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.
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.
0%
Important events
100
50
280,800
272,162
301,915
0
2017 2018 2019
2020
2021
Deliveries in 2021
America
Year-on-year comparison
84,657
Europe
86,160
Asia-Pacific, Africa
131,098
and Middle East
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
Important events
65
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
150
62
250
256,255
8.1% China
5.7% US
5.6% Global economy
5.4% Western Europe
2.7% Germany
2016
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."
Detlev von Platen,
Member of the Executive Board -
Sales and Marketing
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.
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.
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.
Deliveries
of new vehicles
300
200
THE CURRENT PORSCHE PRODUCT RANGE
64
246,375
→ Return on sales ≥ 15%
+11% 7
INVESTORS
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.
Porsche continuously reviews the progress
made with Strategy 2030. The company
already achieved some important milestones
in the last financial year. The Taycan Cross
Turismo rolled out in 2021 is the first
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.
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.
01
Miccin R
Mobil
D7
ABB
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 figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
IN WILLOW SPRINGS, USA
PORSCHE
SUSTAINABILITY MANAGEMENT
Sustainability strategy
Sustainability organisation
Stakeholder communication and dialogue
Stakeholder survey and materiality
STA 5132E
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
→ Return on investment ≥ 21%
PORSCHE MISSION R ON THE RACETRACK
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.
74
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 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.
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
CORPORATE STRATEGY
Mission Vision | Targets
CUSTOMER
PRODUCTS
SUSTAINABILITY
ORGANISATION
TRANSFORMATION
Inspiring brand and
Exciting products
DIGITALISATION
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.
and services
Sustainability in
the whole value
network
Digitally enabled
company, ecosystems
partnering
PROFITABILITY PROGRAM
Effective execution and
balanced exploration
Transformation
driving change
TOGETHER4INTEGRITY
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.
customer experience
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.
79
Sustainability management
78
Governance and transparency, p. 122
Measures
• Global roll-out completed of risk
analysis on the topic of human rights
• Integration of the topic of human rights
into the digital learning module
•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
SUSTAINABILITY ORGANISATION
→ GRI 102-43
2021 status
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.
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 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
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.
Annual assessment of sustainability
achievements on the basis of the
ISS ESG rating.
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.
Performance assessment
Measures
Goal
S-rating coverage: assessment category
for suppliers' good sustainability
achievements.
Porsche's sustainability
organisation is established
throughout the company.
•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
7 Supply chain responsibility, p. 122
Vision
Diversity
Porsche intends to promote a corporate
culture in which everyone is welcome
and can apply their skills.
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
Vision
Governance and transparency
Porsche intends to systematically embed
sustainability aspects in its corporate
management and work towards further
enhancing transparency and responsible
corporate governance.
Porsche has itself the goal of being rated
a leading automotive company in the
independent ISS ESG rating by 2030.
An overview of sustainability organisation
AND DIALOGUE ✓
Responsible overall for the
topic of sustainability
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
value
alliance
Porsche stakeholders
→ GRI 102-40, 102-42, 102-43, 102-44
The most important Porsche stakeholders
as determined by internal analyses.
48
Residents and
communities
8=
Employees
Customers and
business partners
Scientific community
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.
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.
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.
meetings, employee information events,
specifically themed weeks and digital
events also form part of the extensive array
of internal communications.
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
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.
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.
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
Environment and Sustainability
Steering Committee
Consolidates measures across
all the departments and
devises the strategic content
for the areas of action
Porsche
Sustainability Council
Provides input
Sustainability department
Porsche Executive Board
Interface to the Volkswagen Group's
sustainability management
Implements sustainability projects
Subject-specific
working groups
Develop and implement
concrete sustainability measures
and programmes
80
Sustainability management
81
Investors and
analysts
PORSCHE
STAKEHOLDER COMMUNICATIONS
Performance assessment
→ GRI 102-40, 102-42, 102-43, 102-44
Manages the sustainability strategy
and the sustainability bodies
Porsche has set itself the goal of
90 per cent of its purchasing volume
meeting its most stringent quality
standards by 2030.
• Establishment of an internal fund
Porsche intends to guarantee
compliance with environmental
and human rights standards in its
value chain.
PRODUCTION DECARBONISATION ✓
PORSCHE
95
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Environment
94
24
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.
Sustainability Strategy 2030
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.
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
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 PER VEHICLE
REDUCED BY MORE
THAN 90 PER CENT AT
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.
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.
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.
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
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.
Diversity
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 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
-45%
Goal
Partner to society
Governance and transparency
Measures
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.
to support project ideas which
contribute to the strategic "Partner
to society" goals
• Projects to potentially improve the
living conditions of people involved in
the extraction of raw materials for
the automotive industry
• First Porsche Virtual Run
•Further development of the Porsche
hilft volunteering platform
2021 status
Partner to society, p. 109
3 Circular economy
Vision
Porsche intends to use sustainable
materials in its vehicles and close
resource cycles.
Goal
Porsche has set itself the goal of
significantly increasing the proportion
of the verifiable secondary materials
used in its vehicles by 2030.
Performance assessment
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
Impact assessment of social projects:
establishment of lasting positive change in
people's circumstances at the local level.
Performance assessment
in people's circumstances through its
social projects by 2030.
Porsche has set itself the goal of
achieving a quantifiable improvement
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
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 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
Porsche intends to make its products
and processes balance-sheet CO₂-
neutral across their entire life cycle.
Goal
Supply chain responsibility
Porsche has set itself the goal of being
balance-sheet CO2-neutral across the
entire value chain by 2030.
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
(decarbonisation programme), p. 94
Vision
Partner to society
Porsche intends to support people around
the world and actively empower them
through its social engagement.
Goal
Performance assessment
-5%
the value chain including the energy and fuel
emissions of non-production sites and busi-
ness trip and logistics emissions.
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.
Long-term
customer relations
and satisfaction
7 p. 133
7 p. 130
Innovations
7 pp. 94-95
Vehicle
decarbonisation
7 p.97
Production
decarbonisation
7 pp. 131-132
in the supply chain
Environmental protection
7 pp. 102-103
Alternative
drive systems
sources and sustainable
raw materials in vehicles
7 p.98
Consumption of re-
7 pp. 148-159
Social commitment
the business processes
7 p. 124
Sustainability in
7 pp. 104-105
New mobility concepts
ΜΟΙ
medium
Relevance for stakeholders
and experts
high
Compliance and
integrity
Customer and vehicle safety
of human rights
Safeguarding
7 pp. 118-119
Occupational
health and safety
7 pp. 116-117
and socially ethical
transformation
Employee development
7 p. 118
Social affairs
Environment
Field of activity
Business relevance for Porsche
not so important
Corporate co-determination
7 p. 100
Protection of
biodiversity
7 p. 125
Transparent
corporate governance
recycling in production
7 pp. 98-99
Consumption of resources and
7 p. 134
7 pp. 128-129
Digitalisation, data protection
and corporate digital responsibility
7 pp. 126-127
→ GRI 102-44, 102-46, 102-47
Materiality matrix ✓
'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).
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.
• 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.
Dialogue with politics
83
Competitors
and associations
Policymakers
Media
EO
NGOs/non-profit
organisations
Sustainability management
82
84
berg
strategiedialog
automobilwirtschaft BW
slab de
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
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.
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.
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
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
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.
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.
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.
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.
→ GRI 102-40, 102-43, 102-44, 102-46,
102-47, 102-48
7 pp. 131-132
MATERIALITY ✓
wa
Bako Wirtember
74
strategiedialog
automobiwirtschaft BW
Baden-Württemberg
DIALOGUE IN BADEN-WÜRTTEMBERG
OLIVER BLUME AT THE AUTOMOTIVE INDUSTRY STRATEGY
sdalw.de
dabw.de
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slab de
STAKEHOLDER SURVEY AND
Attractiveness as an employer
7 pp. 114-115
Diversity and equal
opportunity
Energy expenditure
for supply chain
further processing
Supplier
Material extraction
and processing
Raw materials
Supply chain
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.
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
RESPONSIBLE CONSUMPTION
12 G
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.
Decarbonisation Index
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:
• 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.
⚫ 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.
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
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.
(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).
PORSCHE'S DECARBONISATION PROGRAMME AIMS TO ACHIEVE BALANCE-SHEET CO₂ NEUTRALITY BY 2030
Energy and fuel at
non-production sites,
employee mobility,
waste, logistics, etc.
Energy expenditure
for vehicle recycling
Recycling
Other
End of life
شدم
Calculation is based on company-specific premises
and values and on data from LCA databases. Vehicle
servicing is not factored into the calculation.
CIRCULAR ECONOMY
CO₂ emissions from
fuel combustion
during the vehicle's
service life
Driving emissions
Upstream chain
Porsche has initiated an
extensive decarbonisation
programme. Porsche
wishes to achieve balance-
sheet CO2 neutrality across
the entire value chain by
2030.
Service life
Energy expenditure
for vehicle
manufacture
Production
In-house
DECARBONISATION INDEX (DKI)
The DKI therefore comprises the production
sites' direct and indirect CO₂e emissions
The DKI also records other emissions within
• Recycling assesses the emissions caused
during disassembly.
Upstream chains
for fuel extraction
and refining, CO₂
emissions caused
by power generation
THE DECARBONISATION INDEX
HAS FALLEN BY AROUND
FIVE PER CENT SINCE
THE DEFINED BASE
YEAR, 2019.
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.
⚫End of life
CLIMATE ACTION
13 ◉
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.
INDUSTRY, INNOVATION
AND INFRASTRUCTURE
9
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.
DECARBONISATION
ENVIRONMENT
Circular economy
ENVIRONMENT
Decarbonisation
87
Sustainability management
86
very important
7 pp. 82-87
Stakeholder dialogue
Corporate governance
high
medium
low
Impacts on the economy, the environment and society
important
7 pp. 112-113
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.
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.
Tons of CO2
per vehicle
67.3
Tailpipe
Fuel
In-house
Supply chain
2021
2020
2019
90
with innovative products
and technologies and
attractive services.
mobility of the future
0
Other
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
of its activities. Porsche
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.
A transparent internal
structure with defined
responsibilities allows
material topics to be
handled consistently and
effectively.
THE STUTTGART-ZUFFENHAUSEN
SITE IS HOME TO
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
PORSCHE DEVELOPS INNOVATIVE PRODUCTS AND SERVICES FOR URBAN MOBILITY
103
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Environment
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.
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.
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
4
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 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.
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
REDUCED INEQUALITIES
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.
DIVERSITY
PORSCHE PARTICIPATES IN THE PURPLE LIGHT UP INITIATIVE ON THE INTERNATIONAL DAY OF PERSONS WITH DISABILITIES
PORSCHE MUSEUM
SOCIAL
ANUFAKTU
EXCL
PORSCHE
PORSCHE
SOCIAL
Diversity
Partner to society
105
10 ►>
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-
Diesel
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.
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.
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.
PROTECTION OF BIODIVERSITY
99
Environment
Five areas - surface management, internal
impact, external impact, local factors and
external factors are evaluated. This involves
98
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.
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.
Green Logistics strategy
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.
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.
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.
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.
To boost sustainable development at
the global level, the United Nations
set the target of promoting effective
public, public-private and civil society
partnerships.
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
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.
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.
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.
Powerful hybrids
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.
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.
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
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).
ALTERNATIVE DRIVE SYSTEMS
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,
117
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.
AT THE LEIPZIG SITE
Resource efficiency
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.
108
115
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Social
114
BEING AN ATTRACTIVE EMPLOYER IS A CORE ASPECT OF PORSCHE'S HR STRATEGY
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.
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.
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.
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.
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.
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.
Work-life balance
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.
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.
Porsche's corporate culture
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
EMPLOYEE DEVELOPMENT AND SOCIALLY
ETHICAL TRANSFORMATION
Many of the training and professional devel-
opment sessions were held virtually in 2020.
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.
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.
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.
How are the current development paths re-
ceived? What expectations do the employ-
ees have regarding their development at
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.
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.
113
departmental qualification options that allow
employees to expand their digital skills. It
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.
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
PORSCHE IS EVALUATING THE POTENTIAL OF VR HEADSETS FOR PRESENTATION TRAINING
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,
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.
Digital learning
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.
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.
It is also important that every member of
the transformation
advancements necessitate
key skills and new
professional abilities.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Social
112
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.
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.
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
110
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.
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.
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
of Porsche's first Sustainability Festival held
for all the employees. Over five days, those
responsible presented the strategy fields
"Decarbonisation", "Supply chain responsibil-
"Shaping the future together" was the motto
Sustainability Festival
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
CASCADE
PAVE
Social
S-VP 1001
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.
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
2
OF THE YEAR.
PORSCHE RANKED SECOND
IN THE WOMEN CAREER
INDEX AND NAMED
NEWCOMER
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.
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.
BY 2025.
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.
111
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.
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.
Diversity as a corporate principle
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
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.
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
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.
Porsche has established an audited environ-
mental management system which is certi-
fied throughout the company in accordance
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.
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.
CONSUMPTION OF
RESOURCES AND RECYCLING
IN PRODUCTION ✓
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.
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.
WITH ITS STRATEGY 2030,
PORSCHE IS
PURSUING THE
VISION OF A
ZERO-IMPACT
FACTORY.
Sustainable raw materials
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.
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.
Social
SUPPLY CHAIN RESPONSIBILITY
GOVERNANCE
Supply chain responsibility
Governance and transparency
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
GOVERNANCE
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.
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
119
130
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.
131
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.
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.
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
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.
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.
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.
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.
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.
Governance
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.
(SDGs)
EMPLOYMENT AND
THE PROMOTION OF
HUMAN RIGHTS.
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.
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.
ISS ESG rating
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.
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 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
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.
COMMITMENT TO SUSTAINABLE
investments in modern, energy-efficient
production buildings and facilities that will
be used exclusively for manufacturing
and developing battery-powered vehicles.
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 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.
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
DEVELOPMENT GOALS
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.
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
PORSCHE FOCUSING ON SUSTAINABLE FINANCING
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-
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
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.
FOR PORSCHE, VEHICLE SAFETY IS A KEY ISSUE IN ITS VEHICLE DEVELOPMENT
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.
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.
MORE THAN 14,000 VACCINE
DOSES ADMINISTERED
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
live
Communications
Sports
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.
Society
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
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.
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.
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.
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.
OCCUPATIONAL HEALTH AND SAFETY
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.
Preventive health management
Customer feedback regarding products
and services
Employees
134
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
RATED BY
133
> 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.
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.
EMPLOYEES, SOCIETY, SPORTS AND COMMUNICATIONS
COMPREHENSIVE VEHICLE
AND BEYOND
The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
S&TA 5123E
+†
939
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.
REQUIREMENTS.
THE LEGAL
SAFETY ABOVE
ISS ESG‣
Material
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
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
INNOVATIONS
129
Governance
128
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
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.
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.
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
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.
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.
a success.
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.
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
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.
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.
Customer privacy
and consumers on their path to a sustainable
future on the basis of knowledge transfer
and input from a cross-industry network.
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
A START-UP
ECOSYSTEM.
Prime
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.
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.
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.
Innovation Management
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.
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.
THE S-RATING IS A MANDATORY
AWARD CRITERION
FOR ALL DIRECT
SUPPLIERS.
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.
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.
SAFEGUARDING OF HUMAN RIGHTS AND
ENVIRONMENTAL PROTECTION IN THE
SUPPLY CHAIN ✓
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.
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.
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.
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
APX
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
IN 2021.
PROJECTS
OF INNOVATION
THE REALISATION
7.7 MILLION EUROS FOR
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.
Investment in digitalisation
DEVELOPING
AND ELECTRO-
• 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.
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 member of society:
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:
Code of Conduct
MOBILITY.
THE EMPLOYEES' AND BUSINESS
PARTNERS' RESPONSIBILITY
FOR COMPLIANCE IS
COMPREHENSIVELY
GOVERNED BY
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.
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.
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 EFFECTIVE-
NESS OF THE
COMPLIANCE
MANAGEMENT
SYSTEM IS
REGULARLY
AUDITED.
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.
Porsche's central compliance help desk offers
information and advice internally, answering
all of the managers' and employees' questions
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.
• 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 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.
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.
COMPLIANCE AND INTEGRITY ✓
125
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Governance
124
Comprehensive
Transparent
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.
Investors
Analysts
山
PORSCHE'S ESG FOCUS
of sustainability. Porsche
introduced extensive ESG
management in the year
under review.
Established compliance structure
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.
THE CODES
OF CONDUCT.
Compliance training
PRODUCTION
FIFTEEN BILLION EUROS FOR
DIGITAL TRANSFORMATION,
SUSTAINABLE
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.
DIGITALISATION, DATA PROTECTION AND
CORPORATE DIGITAL RESPONSIBILITY
127
Governance
126
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.
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.
Promoting integrity
AT PORSCHE.
A TOP PRIORITY
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 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 AN INTEGRAL PART OF
THE MANAGEMENT
MISSION STATEMENT,
INTEGRITY IS
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
the year under review was 91 per cent.
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.
91 PER CENT OF THE EMPLOYEES
HAVE TRAINING IN THE
AVOIDANCE
OF CONFLICTS
OF INTEREST
CORPORATE CO-DETERMINATION
→ GRI 102-41
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.
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.
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.
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.
Upholding human rights
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.
AND CORRUPTION.
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.
to date. Porsche Deutschland has been
a Principal Sponsor of this iconic concert hall
in the port of Hamburg since July 2021.
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
Stuttgart Ballet presents Beethoven
Ballets online
Wagner 22 festival - free opera
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.
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.
PORSCHE DEUTSCHLAND HAS BEEN A PRINCIPAL SPONSOR OF THE ELBPHILHARMONIE IN HAMBURG SINCE JULY 2021
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.
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.
Work-life balance
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.
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 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
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.
With the Porsche Stuttgart
Fire Service, the company
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.
+2
NEW SITE FIRE SERVICE IN ZUFFENHAUSEN
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
147
SOCIETY
2,324
146
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
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.
Porsche again scored
highly in employer rankings.
Porsche's high level of
attractiveness as an
employer is also
demonstrated by its high
number of applicants.
SUCCESSFUL VACCINATION CAMPAIGN
Porsche is a highly regarded employer
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.
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.
COOPERATION WITH THE 42 PROGRAMMING SCHOOL (STOCK IMAGE)
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.
In keeping with the times, the campaign
publication is digital. It comprises five films
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.
Promoting young talent
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
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.
144
Employees, society, sports and communications
145
co-workers in 35 markets
around the world
67,560
kilometres run
IN 201
OLY
PORSCHE AG DONATED A TOTAL OF 339,000 EUROS TO REGIONAL SPORTS FEDERATIONS
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
149
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.
New playbuses put into operation
Stuttgarter Jugendhaus Gesellschaft used
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.
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
example, books, magazines or digital media.
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.
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.
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Porsche AG
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.
DREIHUNDERTUEUU-U339 000-
UUDDREIBIGTAUSEND Stuttgart
Landes sportbund Sachsen 15.02.2021
Landessportverband
Soden-Württemberg
Lander
MOMENTS FROM THE PORSCHE VIRTUAL RUN 2021
200,000
euros donated
SUPPORT PROJECTS
Support for flood victims
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.
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.
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
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.
Culture, sports, education, the
environment and social affairs
represent the five pillars of
Porsche's support measures.
Porsche has always exercised its social re-
sponsibility and has also enshrined this as
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
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
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.
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.
148
BW Bank
aden
Successful vaccination campaign
PORSCHE IS A HIGHLY REGARDED EMPLOYER (STOCK IMAGE)
143
35,429
0
2017
2018 2019 2020
2021
Employees, society, sports and communications
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-
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
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.
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
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.
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.
START OF VOCATIONAL TRAINING AT PORSCHE
140
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
DIVERSITY OF VIEWS IS A KEY DRIVER OF INNOVATION FOR PORSCHE
Partnership with the Leipzig Opera Ball
extended again
Porsche Ausbild
5
15
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.
EMPLOYEES
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.
"PORSCHE WOULDN'T BE
AS SUCCESSFUL IF
WE DIDN'T HAVE SUCH
FANTASTIC EMPLOYEES."
Andreas Haffner,
Member of the Executive Board -
Human Resources
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.
NEW WORKS AGREEMENT RE MOBILE WORKING
138
Employees
Porsche AG Group
35
32,235
29,777
30
25
20
10
nobi
Clear commitment to diversity
and tolerance
Incorporating change into day-to-day
business
982
15,376
Zuffenhausen
Total workforce in Germany
2021
2020
2019
Employees, society, sports and communications
Bietigheim
466
Schwarzenberg
3,571
Ludwigsburg
33,089
32,661
31,690
4,457
Leipzig
Year-on-year comparison
+1% 7
6,801
Weissach
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.
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.
on the collaboration of all age groups.
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.
Porsche launched an innovative internal
learning format called the Online Learning
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.
Employees, society, sports and communications
141
CHANGING WORKING WORLDS
Employees
at the sites in Germany
897
Other sites
in Germany
539
Sachsenheim
Leadership Lab on a feedback culture
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.
142
Sights firmly set on future requirements
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
Changing working worlds at Porsche
Millkomme
n0BS
36,359 36,996
ORN
BE
Spielmobil
Ha
ANDREAS HAFFNER HANDS OVER THE KEYS FOR FIVE NEW MOBIFANT PLAYBUSES
150
NEW DRINKING WATER FOREST - PORSCHE SUPPORTS THE PLANTING CAMPAIGN
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.
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.
New children's award
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.
Employees, society, sports and communications
151
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.
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.
Fostering self-confidence
BACKSIDE
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.
Sieger
Porsche Fußball Cup 2021
154
eue
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.
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.
Premiere of the Porsche Football Cup at
Stuttgart's ADM-Sportpark
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."
Porsche Turbo Awards for junior
sportspeople
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
RB LEIPZIG, THE WINNERS OF THE PORSCHE FOOTBALL CUP 2021
TC
Porsche donated
PATO
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 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.
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.
TECHO
PINTATON
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
152
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
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.
YOUTH DEVELOPMENT IN SPORTS
153
PINTA
ECHO
PINTATON
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.
Porsche Jugendförderung
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.
FC Erzgebirge Aue new to Porsche's youth
development
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.
CH TIME
BEL
:07
PORSCHE
166
Nurturing promising talent
Artistic photography project
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.
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.
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 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 BRAND AMBASSADOR ANGELIQUE KERBER WON THE TOURNAMENT IN BAD HOMBURG
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.
K
Back in the top 10
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.
165
RUS
Employees, society, sports and communications
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 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 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.
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.
COURT SUPREMES PHOTOGRAPHY PROJECT
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."
Oliver Blume,
Chairman of the Executive Board
ASHLEIGH
BARTY
Tyan Durbes
164
ASHLEIGH BARTY WAS THE FIRST AUSTRALIAN TO WIN THE SINGLES FINAL, WINNING A DAY AFTER HER 25TH BIRTHDAY
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
167
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.
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.
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
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 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.
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
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.
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.
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.
#PORSCHELAAS2021
PORSCHE LIT A MAJOR INNOVATION FIREWORK AT THE LA AUTO SHOW
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
175
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.
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.
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.
MEDIA REPRESENTATIVES WERE ABLE TO EXTENSIVELY TEST-DRIVE NEW PORSCHE MODELS AT VARIOUS DRIVING EVENTS
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.
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.
To impart information and messages in a tar-
geted manner, Porsche Communications
draws on the entire array of modern-day in-
struments and channels.
Powerful public relations
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.
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.
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.
Bringing the products to people's attention
Communicating new vehicle models and inno-
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.
174
THE BOOK HIP HOP KULTUR
Auf Ausfahrt: Sidfrankreich
00
newsroom
Auf Ausfahrt: Südfrankreich
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.
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.
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.
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
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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.
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.
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.
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 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.
Hip
Hop
Kultur
En Roadtrip durch Europa
BY NIKO HÜLS WON A GERMAN
BRAND AWARD
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.
COMMUNICATIONS
171
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.
BRAND AMBASSADORS
THE NEW CAN TURBOS CROSS TURISMO
HOLE-IN-ONE PRIZE
A
CHOPARD
DMG MORI
DMG MER
PORSCHE BRAND AMBASSADOR TIMO BERNHARD
P1
CHOPARD
2
2h LEMANS
GENT
RSCHE
CAMANCE
WEC
PORSCHE
DMG MORI
SCHAEFFLER
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.
Porsche European Open
"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."
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.
First year as an ambassador
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.
GOLF
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.
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Employees, society, sports and communications
FOR PORSCHE, THE RESTAGING OF THE PORSCHE JUMP FORGES A BRIDGE BETWEEN THE PAST, THE PRESENT AND THE FUTURE
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.
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.
A major journey
a Porsche Taycan parked
between walls of snow of
many metres in height.
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
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 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 Porsche Jump
170
70 years after Porsche's first
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.
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.
class and personality on and off the court,
and represent Porsche and its philosophy as
brand ambassadors on the global stage.
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
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.
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.
Sports engagement diversity
SAMI KHEDIRA, AMBASSADOR FOR PORSCHE'S YOUTH DEVELOPMENT
169
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Employees, society, sports and communications
168
PAUL CASEY IN THE PORSCHE EUROPEAN OPEN
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.
CHRI
172
STO
24h
IGTE PRO
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 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
"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.
PRSCHE
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
in the driver standings in his first Formula E
season with Porsche. He picked up points
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.
92
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.
WEC, Le Mans, August: Porsche achieved
161
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
PORSCHE 911 RSR DURING A PIT STOP IN LE MANS
Employees, society, sports and communications
LE MANS
2h
LMGTE PRO
92
92
TAGH
PRO
PORSCHE
TAG Heuer Porsche Formula E team finished
in eighth place. Wehrlein came eleventh
In the team world championship, the
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.
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
FERRY PORSCHE FOUNDATION
158
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
ROADMOVIES DRIVE-IN CINEMA ON THE PORSCHE CIRCUIT IN LEIPZIG
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.
Support in times of crisis
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.
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.
for the future
Formula E: Porsche setting course
MOTORSPORT
HO
PORSCHE 99X ELECTRIC: ANDRÉ LOTTERER (#36), PASCAL WEHRLEIN (#94)
о
36
94
SPORTS
159
Employees, society, sports and communications > The figures for fuel consumption, energy consumption and CO2 emissions are found on pages 256-259.
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-
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
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.
ON
PORSCHE
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.
The magazine celebrated the publication
of its 400th issue in the year under review.
Christophorus is currently published
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.
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
guarantees a sustainable production
process, from the cultivation of wood as
a raw material through to paper as the
end product.
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.
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".
CHRISTOPHORUS HAS BEEN PORSCHE COMMUNICATIONS' FLAGSHIP PUBLICATION SINCE 1952
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 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.
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
"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
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.
Rennkunst
Zeitsprung
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.
CHRI
PHO
STO
CHRI
PHO
RUS
STO
CHRI
RUS
PHO
STC
Auf Ausfahrt: Südfrankreich
PHO
Rus
M
THE APPEARANCE OF THE PORSCHE 917 KH AT MONTEREY CAR WEEK IN PEBBLE BEACH
Courage
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.
LMDh
Farbkraft
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.
2021
162
PORSCHE 911 RSR WITH START NUMBER 92 IN BAHRAIN
92
PRO
DHL
TAGHEUer
BE PART OF US
THE PORSCHE 911 GT3 CUP WAS RUN ON ESSO RENEWABLE RACING FUELS IN THE SUPERCUP IN 2021
MICHELIN
(Esso
RACING FUEL
Synergy
Esso
MOBIL 1
SUPERCUP
PORSCHE REVEALED THE FIRST PHOTOS OF THE LMDH RACING CAR DURING THE NIGHT OF CHAMPIONS
Mobil
Mobili
BOSS
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
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.
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.
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 long-standing Porsche
Tennis Grand Prix.
to Stuttgart to participate
in the 44th edition of
Seven of the world's top 10
female players headed
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 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
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
TENNIS
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.
Employees, society, sports and communications
> The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 256-259.
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.
TSNOW AL.
PORSCHE
163
Crafts-
manship
18 min
80%
The design of the new
Taycan has been fine-tuned
with the greatest care
14
16
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
RIGHT The Porsche
Taycan-a work of art
on wheels
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
Sonderwunsch
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.
recognize dreams—and extraordinary
craftsmanship to make them come true.
And the final question: You often talk
about sustainability. Is it a matter
that's close to your heart?
as a luxury brand. What exactly
makes it so?
And now you're going one step
further and optimizing the facility.
Is this another groundbreaking
achievement?
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
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.
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.
And so this brand recognition
becomes a part of my world?
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.
Milestones Fully Charged
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.
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
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.
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.
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.
409
about strong teamwork, consistent
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.
Economic, social, and cultural rights as well as
civil and political rights of communities
126
284
AND NET ASSETS
Working conditions for own workforce
119
RESULTS OF OPERATIONS, FINANCIAL POSITION
194
Partner to society
115
283
SOCIAL
115
283
Overall statement on business development and the
economic situation
192
Personnel
191
-
LEGAL NOTICE
476
282 CONSOLIDATED STATEMENT OF CASH FLOWS
-
FINANCIAL CALENDAR 2024
473
280 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
GLOSSARY
469
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
194
-
Results of operations
Financial position
REPORT ON RISKS AND OPPORTUNITIES
254
General principles of risk and opportunity
management
262
Risks and opportunities as of December 31,
2023
267
292 Accounting policies
(CONDENSED VERSION)
Management of relationships with suppliers
including payment practices
129
Currency translation
291
PORSCHE AG HGB FINANCIAL STATEMENTS
205
GOVERNANCE
129
New and amended IFRS not applied
290 Effects of new or amended IFRS
Basis of consolidation
IFRS 5-Assets held for sale
285 Impact of climate change
284 Significant events
Basis of presentation
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
291
Net assets
202
Personal safety of consumers and/or end users
127
285
198
278
EMISSION AND CONSUMPTION INFORMATION
464
Strategy fields
90
SUSTAINABILITY AT PORSCHE
81
90
437 KEY FINANCIAL FIGURES
276 CONSOLIDATED INCOME STATEMENT
275 CONSOLIDATED FINANCIAL STATEMENTS
182 Strategic direction of the Porsche AG Group
Management and key performance indicators
FUNDAMENTAL INFORMATION ABOUT THE GROUP
Business model
180
180
—
434 SASB INDEX
TCFD INDEX
431
GRI CONTENT INDEX
425
Overall statement on anticipated development
422 ABOUT THIS REPORT
270 Development of the global economy and
passenger car markets
Forecast assumptions
271
273
419 INDEPENDENT AUDITOR'S REPORT
REPORT ON EXPECTED DEVELOPMENTS
270
417 INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT
408 RESPONSIBILITY STATEMENT
269 Summary
94
Stakeholder dialog and materiality
ENVIRONMENT
101
440 NONFINANCIAL KEY FIGURES
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
277
Research and development
191
Production
190
Waste
112
Biodiversity and ecosystems
111
Water and marine resources
110
Pollution and substances of concern
254
108
188
Sector-specific environment
187
Macroeconomic environment
186
-
BUSINESS DEVELOPMENT
186
Corporate Governance Declaration
185
183
104 Energy and climate change adaptation
Environmental management
101
Deliveries
407 FURTHER INFORMATION
SUSTAINABILITY
89
strategy, effective planning, and
sustainable operations.
Financial risk management and methods as well
as opportunities
manufacturer. A conversation
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
Fully Charged
7
Resilience in the revolution.
Porsche embraces the megatrends
of industrial transformation.
CHANGE
60
Milestones Magazine
Six decades, six cylinders. Innovations
improve the 911 without compromising
its identity.
DRIVE TECHNOLOGY
PORSCHE
60
50
Calculated risk. Investments
in start-ups with strategic
and economic value.
VISION
28
Tradition and trends inspired
by dreams. The process from
customization to a one of a kind.
CRAFTSMANSHIP
16
digitalization of vehicles to a new level.
Executive Board members take the
Networking at the highest level. Two
TEAM SPIRIT
44
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
6
in technology and aesthetics.
9
The new Taycan charges
from 10 to 80 percent
in 18 minutes
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?
Were those notable stage wins?
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.
we're a strong team.
result of teamwork. And
Success is always the
49%
8 min
Chairman of the Executive Board
Oliver Blume,
luxury.
state-of-the-art
combination of
iconic legacy
and sporty,
the perfect
Porsche is
10
The Macan sets benchmarks-both
10
10%
were talking about billions in investment,
as Porsche CEO as if it were yesterday. We
I remember my first Supervisory Board meeting
to develop the Taycan required a lot of courage.
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
And won't it take a lot of courage, too?
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.
Does that make transformation
a competition in stages?
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.
So it's about pragmatic guidelines
rather than visionary ones?
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.
You say that success takes planning.
Is there a secret formula for this?
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.
O min
The new Macan and the next
generation of the Taycan are
the benchmark.
New dimensions of dynamism.
34
H
11
20
22
03
23
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
135 CORPORATE GOVERNANCE
136 CORPORATE GOVERNANCE DECLARATION
147
MEMBERS OF THE EXECUTIVE BOARD
78
88
68 LETTER FROM THE EXECUTIVE BOARD
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
Porsche AG
Annual and Sustainability Report
MILESTONES
Milestones Craftsmanship
Oliver Blume, Chairman of the Executive Board.
our sights set on the future. An interview with
We have successful developments behind us and
FULLY CHARGED
8
MAGAZINE
5
LO
Contents
Milestones
Governance
250
Social
236
STREAMLINING
Other notes
339
Environment
228
EU taxonomy
214
316
210 Sustainability management and organization
Notes to the income statement
307
NON-FINANCIAL STATEMENT 2023
210
Political engagement and lobbying activities
131
304 Segment reporting
Notes to the consolidated statement of financial
position
149 MEMBERS OF THE SUPERVISORY BOARD AND
COMPOSITION OF THE COMMITTEES
19
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
23.3%
Rest of
the world
14.1%
Sales revenue by region (excluding hedges)
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.
RESULTS OF OPERATIONS
Return on sales as % and sales revenue in € million
of Porsche AG Group
RESULTS OF OPERATIONS, FINANCIAL POSITION
AND NET ASSETS
China²
194
193
Combined Management Report Business development
12.8
%
25.7
%
Between 25% and 27%
Between 12% and 14%
10.6
%
Between 10% and 12%
Automotive net cash flow margin
Automotive EBITDA margin
Automotive BEV share
↑↓ ↑ 0 |||
2023
21.4%
Europe without
Germany
29.2%
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).
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%).
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.
40,056 34,089
333,605 313,721
Vehicle sales
Taycan
Panamera
34,386 33,958
92,866 96,800
Cayenne
89,767
90,161
Macan
18,392
22,395
718 Boxster/Cayman
40,715
53,741
911
2022
2023
Units
Vehicle sales of the Porsche AG Group
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).
North America'
18.0
16,0%
%
€ million
Total research and development costs in relation to automotive sales revenue.
Total research and development expenses in relation to capitalized
development costs.
4.3
4.6
2
1
in the income statement³ (%)
recognized
Research and development costs
784
960
3 Total research and development expenses in relation to automotive sales
revenue recognized in the income statement.
development costs
1,484
1,712
in the income statement
Research and development costs
recognized
7.7
7.6
73.6
73.5
Capitalization ratio¹ (%)
R&D ratio² (%)
1,951
2,081
of which: amortization of capitalized
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
€40 to €42 billion
Between 17% and 19%
Return on sales
Automotive segment
2023
in annual report 2022
Actual business development
Forecast for 2023
Sales revenue
Most important key performance indicators
Porsche AG Group
Comparison of forecast with actual business development
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%).
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 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 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.
OVERALL STATEMENT ON BUSINESS
DEVELOPMENT AND THE ECONOMIC SITUATION
192
↑ ↓ ↑ 0 |||
191
Combined Management Report Business development
Leipzig
36.0%
2023
Zuffenhausen
32.0%
Other
sites
32.0%
40,530
costs
€33,138 million
China incl. Hong Kong
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).
34,599
25.2
25.7
Automotive EBITDA margin (%)
37,349
Automotive sales revenue
8,726
€9,594 million
9,594
2,301
2,656
impairment losses
Depreciation, amortization and
6,425
6,938
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 EBITDA
€8,726 million
2021
2022
↑ ↓ ↑ 0 ||
€3,973 million
-
10.6%
2023
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
198
↑ ↓ ↑ 0 ||
2023
Automotive operating profit of €6,938 million in the fiscal year
2023 exceeded the figure of the prior-year period by
1 North America excl. Mexico
Automotive results of operations
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.
40,530
Profit before tax
Financial result
Return on sales (%)
Operating profit
Distribution expenses
Administrative expenses
Net other operating result
Gross profit
Cost of sales
Sales revenue
of Porsche AG Group
Automotive EBITDA margin as % and Automotive EBITDA in € million
37,637
2022'
€ million
Condensed income statement of the Porsche AG Group
196
↑ ↓ ↑ 0 ||
2023
2022
2021
€40,530 million
€37,637 million
18,0%
18,0%
2023
-28,924
-27,089
11,606
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
-2,114
24.5%
7,081
7,375
-2,218
Income tax
308
91
18.0
18.0
6,772
7,284
232
335
-1,655
-1,787
-2,353
-2,869
10,549
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.
of which: capitalized development
11.9%
Germany
2,834
· Automotive research and development costs (€ million)
Automotive capital expenditure (€ million)
Automotive net liquidity (€ million)
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:
Other relevant performance indicators
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
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
BEV SHARE
- Automotive BEV share (%)
- Automotive EBITDA margin (%)
Automotive net cash flow margin (%)
- Automotive return on sales (%)
-Financial services return on sales (%)
- Automotive return on investment (%)
Automotive segment
Sales revenue (€ million)
Porsche AG Group
Most important key performance indicators
Most important key performance indicators
184
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Combined Management Report Fundamental information about the group
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.
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.
- capacity and utilization planning for the individual factories.
Return on sales (%)
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:
SALES REVENUE
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
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.
EUROPE
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.
GERMANY
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.
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.
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.
Development of global economy
MACROECONOMIC ENVIRONMENT
BUSINESS DEVELOPMENT
↑↓ ↑ 0 |||
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Combined Management Report Fundamental information about the group
> http://investorrelations.porsche.com/en/corporate-governance/.
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
CORPORATE GOVERNANCE DECLARATION
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
AUTOMOTIVE EBITDA MARGIN
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 NET CASH FLOW MARGIN
→ Results of operations
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.
RETURN ON SALES
- long-term sales planning that shows market and segment
developments and is used to determine the delivery volume
for the Porsche AG Group and
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.
-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,
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.
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.
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
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.
Production
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.
Procurement
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.
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.
AUTOMOTIVE SEGMENT
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
"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.
Purpose of the company
→ GRI 2-1
BUSINESS MODEL
FUNDAMENTAL INFORMATION ABOUT THE GROUP
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180
→ Notes to the consolidated financial statements-Segment reporting
FINANCIAL SERVICES SEGMENT
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.
EXTERNAL FACTORS
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 and key figures
MANAGEMENT AND KEY PERFORMANCE
INDICATORS
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.
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.
Road to 20
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.
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 "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 "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 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
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
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.
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.
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.
OF THE PORSCHE AG GROUP
STRATEGIC DIRECTION
182
181
Combined Management Report Fundamental information about the group
2,651
The report on risks and opportunities presents and comments
on the external factors influencing the business of the
Porsche AG Group.
For the future orientation of the Porsche AG Group, the
individual planning content is determined on the basis of the
planning horizon:
NORTH AMERICA EXCL. MEXICO
→ Risk and opportunity situation as of December 31, 2023
CHINA INCL. HONG KONG
Cayenne
41,947
18,080
55,655
23,605
87,334 91,117
Macan
718 Boxster/Cayman
911
2022
2023
Units
Production of the Porsche AG Group
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
190
↑↓ ↑ 0 |||
12.8%
2023
2022
2021
11.3%
40,629 34,801
309,884
320,221
Deliveries
Taycan
34,020 34,142
Panamera
96,600
95,604
98,113
35,241
39,397 36,823
336,280 321,321
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%).
Total research and development costs
34,599
37,349
Automotive sales revenue
€ million
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).
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.
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.
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.
RESEARCH AND DEVELOPMENT
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.
PRODUCTION IN LEIPZIG
PRODUCTION IN ZUFFENHAUSEN
Production sites
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.
As was already the case in 2022, the locations in Zuffenhausen
and Leipzig were net neutral carbon in manufacturing all
vehicles.
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.
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.
Production
Taycan
Panamera
33,689
87,553
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.
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.
Rest of
the world
16.3%
Share of deliveries by region
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.
DELIVERIES
188
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).
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.
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.
Market development for the financial services
segment
24.8%
China²
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.
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.
NORTH AMERICA EXCL. MEXICO
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.
EUROPE WITHOUT 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.
GERMANY
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.
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.
SECTOR-SPECIFIC ENVIRONMENT
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.
Cayenne
CHINA INCL. HONG KONG
10.1%
Germany
187
2023
50,146
20,518
718 Boxster/Cayman
Macan
911
2022
1 North America excl. Mexico
Units
Deliveries of the Porsche AG Group
87,355 86,724
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. Accordingly, 52,220 customers took delivery of their
vehicle in the region rest of the world.
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
2 China incl. Hong Kong
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
of Porsche AG Group
2023
21.9%
Europe without
Germany
26.9%
13.7%
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.
North America'
In the reporting period, the proportion of purely battery-
powered electric vehicles (automotive BEV share) stood at
12.8% (2022: 11.3%). → Environment
Automotive BEV share
In 2023, the Porsche AG Group recorded 40,629 deliveries
worldwide (up 16.7%).
40,410
18,203
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.
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.
PROTECTION AND RESTORATION OF BIODIVERSITY AND
ECOSYSTEMS
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.
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.
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.
POLLUTION PREVENTION AND CONTROL
CLIMATE CHANGE ADAPTATION
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.
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.
SUSTAINABLE USE AND PROTECTION OF WATER AND
MARINE RESOURCES
216
215
Combined Management Report Non-financial statement 2023
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.
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.
Minimum safeguards
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 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.
Subject-specific working groups
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.
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 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.
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.
statements, which amounted to €40,530 million in fiscal year
2023. Notes to the consolidated financial statements-1. Sales revenue
The turnover defined in the EU Taxonomy corresponds to sales
revenue as reported in the IFRS consolidated financial
SALES REVENUE
218
↑↓ ↑ 0 |||
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.
217
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.
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 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.
Key performance indicators in accordance with the
EU Taxonomy Regulation
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.
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
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.
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.
Combined Management Report Non-financial statement 2023
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.
Climate change adaptation
The DNSH criteria were analyzed in the reporting year for
>
Sustainable use and protection of water and
marine resources
>
Climate change mitigation
>
EU Taxonomy classification system
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:
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.
Background and objectives
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.
EU TAXONOMY
↑↓ ↑ 0 |||
214
↑↓ ↑ |||
Develop and implement concrete sustainability
measures and programs
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
Consolidates measures across all the
departments and devises the
strategic content for the areas of action
Transition to a circular economy
economic activities covered by "3.3 Manufacture of low-carbon
technologies for transport" and "3.18 Manufacture of
automotive and mobility components".
>
Protection and restoration of biodiversity
Do No Significant Harm (DNSH)
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.
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.
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.
Economic activity "3.18 Manufacture of
automotive and mobility components"
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.
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.
Economic activity "3.3 Manufacture of low-
carbon technologies for transport"
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.
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.
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 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.
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.
Reporting for the fiscal year 2023
- 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
Pollution prevention and control
EU Taxonomy: sales revenue
3.18 Manufacture of automotive and
mobility components
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.
99
Y
Y
0.2
99
0.2
99
10.8
4,368
Y
Y
of which taxonomy-aligned BEVS
12.7
5,143
Y
Y
12.7
0.2
B. Taxonomy-non-eligible activities
Total (A + B)
1,355
40,530
Sets sustainability priorities and strategic focus
€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.
5,143
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.
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.
↑↓ ↑ 0 ||
219
Combined Management Report Non-financial statement 2023
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
1 All percentages relate to the total amount of sales revenue.
3.3
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.
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.
96.4
3.3 Manufacture of low-carbon
technologies for transport
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
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.
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.
€1,797 million from property, plant and equipment
€2,900 million from leased assets (mainly vehicle leasing
business)
-€2,454 million from intangible assets
In fiscal year 2023, additions in the Porsche AG Group as
defined above amounted to
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.
CAPITAL EXPENDITURE
Taxonomy-aligned
sales revenue
Compliance
with
minimum
safeguards
Compliance
with DNSH
criteria
Substantial contribution to
climate change mitigation
Sales revenue
€5,243 million (2022: €3,787 million), or 12.9% (2022:
10.1%), was taxonomy-aligned sales revenue
€39,175 million (2022: €36,704 million²), or 96.7% (2022:
97.5%), was taxonomy-eligible sales revenue
Of the Porsche AG Group's total sales revenue in the fiscal year
2023,
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.
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.
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
12.9
5,243
Y
Y
12.9
5,243
96.7
39,175
39,075
A. Taxonomy-eligible activities
€ million
Y/N
Y/N
%
€ million
%'
€ million
Economic activities
%'
Environment and Sustainability
Steering Committee
8,402
Interface to the Porsche Sustainability Council
11,573
916
3,420
3,420
3,822
3,822
911
911
Liabilities
Other provisions
Provisions for pensions and similar obligations
Provisions
Distributable profit
Retained earnings
Capital reserves
Subscribed capital
Equity
5,649
5,291
4,959
3,881
Deferred income
12,059
4,096
9,940
1,907
Other liabilities
715
1,069
Equity and liabilities
Trade payables
46
Advance payments received on account of orders
1,357
1,074
Liabilities to banks
8,632
9,172
3,673
47
553
26,856
0
6,456
6,898
2,396
2,438
Financial assets
Property, plant and equipment
Intangible assets
Fixed assets
Assets
Dec. 31, 2022
Dec. 31, 2023
€ million
Statement of financial position structure of Dr. Ing. h.c. F. Porsche AG as of December 31, 2023
208
↑ ↓ ↑ 0 |||
207
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:
6,144
3,122
15,480
11,974
0
Excess of covering assets over pension and similar obligations
149
154
Prepaid expenses
14,733
9,759
35
25,393
16
686
1,032
2,957
11,055
2,935
5,777
Other assets
Receivables
Inventories
Current assets
Cash on hand and bank balances
Environment and Sustainability
Steering Group
516
26,856
Combined Management Report Non-financial statement 2023
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".
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.
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.
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.
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.
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.
Sustainability organization
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.
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.
ESG management
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.
REDUCED
INEQUALITIES
PARTNERSHIPS
FOR THE GOALS
CLIMATE
13 ACTION
ECONOMIC GROWTH
211
↑↓ ↑ 0 |||
212
The Environment and Sustainability Steering Committee is a
Responsible for stakeholder management
Manages sustainability communications
and stakeholder dialogue
Politics and Society department
Implements sustainability projects
Manages the sustainability strategy and
the sustainability bodies
Interface to the Volkswagen Group's
sustainability management
Sustainability department
Provides input
Qo
Porsche
Sustainability Council
Overall responsibility for
Porsche Executive Board
An overview of sustainability organization
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.
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.
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.
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.
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 topic of sustainability
25,393
AND PRODUCTION
RESPONSIBLE
↑↓ ↑ |||
209
Combined Management Report Porsche AG HGB financial statements (condensed version)
"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".
The Executive Board of Porsche has submitted to the
Supervisory Board the report required by section 312 AktG and
issued the following concluding declaration:
DEPENDENT COMPANY REPORT
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.
RISKS FROM FINANCIAL INSTRUMENTS
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.
Personnel
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.
Production
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.
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.
Sales
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.
BUSINESS DEVELOPMENT OF PORSCHE AG
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
AND INFRASTRUCTURE
INDUSTRY, INNOVATION
8 DECENT WORK AND
QUALITY
EDUCATION
The Sustainability Development Goals that
Porsche AG is concentrating on:
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 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 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.
12 CONSUMPTION
Governance and transparency
Partner to society
>
2 Diversity
Circular economy
Decarbonization
CO₂
The Sustainability Strategy 2030 classifies the key challenges
facing the Porsche AG Group into six strategy fields.
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.
Supply chain responsibility
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.
-786
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.
-1,203
-6,606
3,057
-4,895
-3,361
1,186
Combined Management Report Porsche AG HGB financial statements (condensed version)
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
2023
2022
Cash and cash equivalents
6,139
4,710
Cash and cash equivalents at end of period
5,826
Cash flows from investing activities
3,745
-2,502
Change in investments in securities and time deposits as well as loans
-645
-983
Cash flows from operating activities
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.
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.
Automotive third-party borrowings decreased by €196 million
to €2,646 million in 2023 on account of repayments of financial
liabilities.
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
€ million
Capital contributions
Profit transfer and dividends
Change in other financing activities
Investing activities of current operations
-4,322
-4,103
3,119
Securities and time deposits
as well as loans
3,723
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.
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.
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.
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.
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.
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%).
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.
Condensed statement of financial position of the Porsche AG Group as of December 31, 2023
Dec. 31, 2023
%
Dec. 31, 2022¹
€ million
Assets
NET ASSETS
202
↑ ↓ ↑ 0 |||
201
6,415
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.
Gross liquidity
9,861
11,125
Third-party borrowings
-2,646
-2,843
Change in financial services receivables
Automotive net liquidity
8,282
-3,708
-1,089
-31
-2
2,081
-583
Combined Management Report Results of operations, financial position and net assets
7,215
-536
-1,322
Change in leased assets
7,081
-671
-1,013
Income taxes paid
-2,190
-2,370
-279
-202
Depreciation and amortization²
3,528
3,189
Change in liabilities (excluding financial liabilities)
578
1,016
Gain/loss on disposal of non-current assets
14
5
7,375
Profit before tax
334
-2
200
Automotive net cash flow
€ million
Condensed cash flows of the Porsche AG Group
2023
2022'
€ million
2023
Change in other provisions
2022¹
Change in working capital
Change in inventories
Change in receivables (excluding financial services)
8,256
7,855
Cash and cash equivalents at beginning of period
3,745
4,327
Cash flows from operating activities
Non-current assets
370
Share of profit or loss of equity-accounted investments
-1,010
Changes in equity investments
-248
-404
Change in receivables (excluding financial services)
-190
-247
Net cash flow
3,973
3,866
Change in liabilities (excluding financial liabilities)
618
1,052
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.
Change in other provisions
366
556
-694
Change in inventories
-1,951
-2,081
34
52
Investing activities of current operations²
-4,282
-3,989
Change in pension provisions
251
366
532
Investments in intangible assets (excluding capitalized development costs)
and property, plant and equipment
-122
-40
-1,964
-1,642
Change in working capital
-1,866
-1,168
Additions to capitalized development costs
Other non-cash expense/income
The capital reserves remained unchanged compared to the prior
year at €3,822 million.
Current assets
Property, plant and equipment
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
-63
Amortization, depreciation and impairment of intangible assets and property, plant and equipment
2022
Sales revenue
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
€ million
2023
-1,662
-1,549
Other operating expenses
-3,420
Profit before tax
Tax allocations
Income tax
Withdrawal from retained earnings
Transfer to retained earnings
Profit carryforward
Distributable profit
NET ASSETS AND FINANCIAL POSITION
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.
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%).
25
-11,704
12,595
Withdrawal from capital reserves
Reduction in assets from spin-off
-4,580
-5,289
Investment result
1,932
1,860
Interest result
-37
5,387
-1,399
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.
-1,525
6,877
3,988
Other taxes
-37
Profit transferred under a profit and loss transfer agreement
-9
-3,979
Net income for the year
6,840
Profit after tax
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%).
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.
€6,192 million compared to December 31, 2022. The decrease
4,537
9.0
7,480
15.7
235
0.5
87
0.2
1,826
3.6
1,795
3.8
5,820 11.5
3,719
7.8
6
50,447
3.2
1,538
3.3
1,669
30,407 60.3
8,554 17.0
9,394 18.6
27,488 57.7
7,473 15.7
8,924 18.7
Leased assets
4,190
8.3
Financial services receivables
4,676
9.3
0.0
100.0
3,854
4,382
9.2
Equity-accounted investments, other equity investments, other financial assets,
other receivables and deferred tax assets
3,592
7.1
20,040 39.7
2,855 6.0
20,154 42.3
5,947 11.8
5,504 11.6
8.1
Intangible assets
31
47,642
100.0
47,642 100.0
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).
Securities and time deposits as well as cash and cash
equivalents increased by €2,132 million to €7,646 million
compared to 2022.
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.
Dividend payments of €916 million, which were resolved by the
Annual General Meeting of Porsche AG on June 28, 2023,
caused equity to decrease.
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.
Furthermore, non-current other liabilities increased by
€16 million to €4,360 million compared to December 31, 2022.
Combined Management Report Results of operations, financial position and net assets
203
↑↓ ↑ |||
204
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%).
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
0.0
12
21.4
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
Inventories
Financial services receivables
Other financial assets and other receivables
Tax receivables
Securities and time deposits
Cash and cash equivalents
Assets held for sale
Total assets
Equity and liabilities
Equity
Non-current liabilities
0.1
Provisions for pensions and similar obligations
Other liabilities
Current liabilities
Financial liabilities
Trade payables
Other liabilities
Liabilities associated with 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
Financial liabilities
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 Non-financial statement 2023
220
N/EL
N/EL
N/EL
N/EL
N/EL
OpEx of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomy-aligned activities) (A.2)
OpEx of taxonomy-eligible activities
(A.1 + A.2)
EL
557
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
50.1
50.1
557
3.3
N/EL
OpEx of environmentally sustainable
activities (taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2. Taxonomy-eligible but not
555
49.9
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
All percentages relate to the total operating expenditure of the group.
N/EL
2 Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
3 EL: taxonomy-eligible activity for the relevant objective; N/EL: taxonomy-non-eligible activity for the relevant objective.
E
54.1
54.1
100.0
Combined Management Report Non-financial statement 2023
227
↑↓ ↑ ||
228
ENVIRONMENT
Climate change mitigation
45.9
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.
TARGETS
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.
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 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.
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.
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.
DUE DILIGENCE PROCESS
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).
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.
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.
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.
Y
Y
Y
Y
Y
Y
Y
Y
45.9
E
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Y
Y
45.9
Y
Y
Y
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental objective.
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
N/EL
N/EL
43.6
E
56.4
56.4
100.0
Combined Management Report Non-financial statement 2023
225
↑↓ ↑ ||
226
Operating expenditure 2023
Y
Economic 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
of OpEx,
Code
A. Taxonomy-eligible activities
Y
Y
Y
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
Y
Y
Y
Y
Y
Y
E
Y
Y
Y
Y
Y
43.6
Y
Y
OpEx
N/EL
2023
Circular
Y/N
Y/N
Y/N
Y/N
Y/N
%¹
Manufacture of low-carbon technologies for
transport
CCM
3.3
555
Y/N
49.9
N/EL
N/EL
N/EL
N/EL
N/EL
Manufacture of automotive and mobility
CCM
components
3.18
Y
Y
Y/N
N/EL²
Y; N;
Bio-
Water
Pollution
economy diversity
change
mitigation
Climate
change
adaptation
Water
Pollution
Circular
economy Biodiversity
Minimum
safeguards
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
change change
mitigation adaptation
Decarbonization Index
at company level and for the relevant company departments,
which are signed off by the Steering Group and then 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.
high-voltage batteries
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 |||
to manufacture
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
↑↓ ↑ |||
Finishing and use
of recycled materials
Use of recycled
materials
Recycling
233
↑↓ ↑ |||
Recycling process for high-voltage batteries
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
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.
Combined Management Report Non-financial statement 2023
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.
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.
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,
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
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).
S-rating.
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.
Complaints process
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.
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
A: Eligible for the award of contracts
B: Award of contracts with conditions
C: Not eligible for the award of contracts
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.
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 |||
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.
Decarbonization in the supply chain
2 Excluding product upgrades.
1 The Sustainability Report was not subject to an independent audit by an
external public auditor.
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.
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.
Combined Management Report Non-financial statement 2023
229
↑↓ ↑ 0 |||
The Porsche AG Group has set up an internal project
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
Recycling
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.
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.
Electrification of the vehicle portfolio
Other
End of life
CO₂ emissions
from fuel com-
bustion during the
vehicle's usephase
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.
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.
Any
Supply chain
In-house
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.
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.
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
(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.
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
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.
2023
2022
2021
Metric tons of
CO₂e/vehicle
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.
DCI
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental objective.
Decarbonization index
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 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.
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.
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.
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
2022
2021
Share of all-electric
vehicles (BEV) delivered
12.8
11.3
13.7
In the reporting year, the DCI was 62.7 tCO2e/vehicle, which
represents a slight decrease of 1.8% year on year.
Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
239
All percentages relate to the total capital expenditure of the group.
5,243
(A.1)
sustainable activities (taxonomy-aligned)
Sales revenue of environmentally
N/EL
N/EL
N/EL
N/EL
N/EL
12.9
Y
99
3.18
CCM
Manufacture of automotive and mobility
components
N/EL
N/EL
N/EL
N/EL
N/EL
0.2
Y
12.9
12.9
EL;
N/EL³
EL;
N/EL³
EL;
N/EL³
EL;
N/EL3
N/EL³
EL;
EL:
N/EL³
Sales revenue of taxonomy-non-eligible
B. Taxonomy-non-eligible activities
5,243
activities (A.1 + A.2)
(not taxonomy-aligned activities) (A.2)
Sales revenue of taxonomy-eligible but not
environmentally sustainable activities
Manufacture of low-carbon technologies
for transport
(not taxonomy-aligned activities)
environmentally sustainable activities
A.2. Taxonomy-eligible but not
Of which transitional
Of which enabling
12.9
Sales revenue of taxonomy-eligible
CCM
3.3
12.7
3.3
Bio-
diversity
Circular
economy
Pollution
Water
change change
2023 mitigation adaptation
revenue,
Sales
revenue
Code
Climate Climate
change
of sales
Climate
Proportion
Proportion of
taxonomy-
aligned (A.1.)
or -eligible
DNSH criteria ("Does Not Significantly Harm")
Substantial contribution criteria
A.1. Environmentally sustainable activities
(taxonomy-aligned)
A. Taxonomy-eligible activities
Economic activities
Sales revenue 2023
Climate
5,143
mitigation
Circular
for transport
CCM
Manufacture of low-carbon technologies
N/EL²
Y; N;
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
change
adaptation
Y; N;
N/EL²
€ (million)
activity
enabling transitional
activity
Category
(A.2.) sales
revenue,
2022
Minimum
safeguards
economy Biodiversity
Pollution
Water
%¹
TABLES PURSUANT TO EU TAXONOMY
33,932
EL
Capital expenditure 2023
224
↑↓ ↑ ||
223
Combined Management Report Non-financial statement 2023
97.5
87.5
87.5
E
Economic activities
10.1
Y
Y
Y
Y
10.1
Y
Y
Y
Y
Y
Y
A. Taxonomy-eligible activities
Manufacture of low-carbon technologies for
transport
2
Climate
Climate
Proportion of
taxonomy-
aligned (A.1.)
DNSH criteria ("Does Not Significantly Harm")
Substantial contribution criteria
activities (B)
CapEx of taxonomy-non-eligible
B. Taxonomy-non-eligible activities
A.1. Environmentally sustainable activities
(taxonomy-aligned)
CapEx of taxonomy-eligible activities
(A.1 + A.2)
Manufacture of low-carbon technologies for
transport
(not taxonomy-aligned activities) (A.2)
environmentally sustainable activities
A.2. Taxonomy-eligible but not
Of which transitional
Of which enabling
activities (taxonomy-aligned) (A.1)
CapEx of environmentally sustainable
Manufacture of automotive and mobility
components
CapEx of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomy-aligned activities) (A.2)
83.7
Y
Y
2
All percentages relate to the total sales revenue of the group.
1
100.0
40,530
Total (A + B)
3.3
1,355
activities (B)
Y: Yes, taxonomy-eligible and taxonomy-aligned activity with the relevant environmental objective; N: No, taxonomy-eligible but not taxonomy-aligned activity with
96.7
39,175
83.7
83.7
33,932
N/EL
N/EL
N/EL
N/EL
N/EL
96.7
E
the relevant environmental objective; N/EL: Not eligible, taxonomy-non-eligible activity for the relevant environmental 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
Y
Y
E
10.1
Y
Y
Y
Y
3 EL: taxonomy-eligible activity for the relevant objective; N/EL: taxonomy-non-eligible activity for the relevant objective.
Y
E
%1,4
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
T
222
Category
221
810
Y
18.1
1,297
↑↓ ↑ 0 |||
38.4
2,743
Y
Y
11,3
38.4
100.0
7,151
38.4
2,743
Y
Y
38.4
2,743
100.0
2,743
7,151
A. Taxonomy-eligible activities
3.3 Manufacture of low-carbon
technologies for transport
N/EL
Y/N
Y/N
Y/N
Y/N
%1
CCM
3.3 2,743
38.4
Y
2,743
2,743
N/EL
N/EL
N/EL
N/EL
CCM
3.18
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y/N
%¹
Y/N
N/
EL:
N/EL³
EL:
N/EL3
CCM
3.3 4,408
61.6
EL
N/EL
N/EL
EL:
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
€ million
EL:
N/EL3
EL:
Y/N
%¹
€ million
%¹
€ million
capital expenditure
Taxonomy-aligned
with DNSH minimum
criteria safeguards
climate change mitigation
EL:
N/EL³
Capital expenditure
Compliance
with
Compliance
Economic activities
EU Taxonomy: capital expenditure
38.4
38.4
38.4
38.4
N/E
Substantial contribution to
Y/N
Y
N/EL²
Y
49.9
555
100.0
1,112
A. Taxonomy-eligible activities
%1
€ million
Y/N
Y
Y/N
€ million
%'
€ million
Taxonomy-aligned
operating expenditure
Compliance
with
minimum
safeguards
with DNSH
criteria
Substantial contribution to
climate change mitigation
Operating expenditure
Compliance
%¹
Economic activities
555
3.3 Manufacture of low-carbon
Combined Management Report Non-financial statement 2023
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.
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.
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.
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.
All percentages relate to the total amount of operating expenditure.
1,112
Total (A + B)
B. Taxonomy-non-eligible activities
49.9
mobility components
49.9
555
Y
Y
Y/N
555
100.0
1,112
technologies for transport
3.18 Manufacture of automotive and
EU Taxonomy: operating expenditure
49.9
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.
Pollution
economy diversity
mitigation
change
adaptation
Water
Pollution
Circular
Minimum (A.2.) CapEx,
economy Biodiversity safeguards
2022
Category
enabling
activity
Water
Category
€ (million)
%¹
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
Y; N;
N/EL²
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.
Y; N;
transitional
change
activity
Circular
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.
Bio-
1 All percentages relate to the total amount of capital expenditure.
7,151
Total (A + B)
mobility components
3.18 Manufacture of automotive and
plant and equipment for BEVS
of which additions to property,
B. Taxonomy-non-eligible activities
or -eligible
Proportion
Climate Climate
change change
mitigation adaptation
of CapEx,
Code
2023
of which additions to capitalized
development costs for BEVS
CapEx
Supervisory Board
Plausibility test and assessment
of the risk situation
Central risk
management function
Risk owners
Risk identification and reporting
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.
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.
Financial net potential
Risk Council
Risk classes of the Porsche AG Group
Risk classes
Other key functions
Advisory body:
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.
for completeness
Review of the risk situation
Information and acknowledgment
Structures and procedures of risk management
256
255
Combined Management Report Report on risks and opportunities
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.
Risk-bearing capacity concept includes equity
and gross liquidity
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.
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.
Methodology fiscal year 2023
Risk class E
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
Executive Board
≤ €5 million
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.
Level 0
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.
Holistic risk inventory
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.
management system not having been appropriate or effective
as a whole in the fiscal year 2023.
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
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.
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.
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.
Monitoring of the effectiveness of risk
management, the internal control system and the
compliance management system
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.
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.
The Porsche AG Group's internal control system (ICS), which is a
key element of the RMS, serves to duly manage operational
INTERNAL CONTROL SYSTEM
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.
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.
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.
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%.
Porsche AG specialist departments and subsidiaries
Risk owners:
> €1 billion
Risk class A
Level 4
> €100 million-€1 billion
Risk class B
Level 3
> €10 million-€100 million
> €5 million-€10 million
Risk class C
Level 2
Level 1
Risk class D
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.
MEASURES
RISK MANAGEMENT SYSTEM
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
2022
2021
First management level
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.
20.0
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:
16.1
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.
The diversity networks and the mentoring program are open to
employees of Porsche AG and selected subsidiaries around the
world.
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.
241
↑↓ ↑ 0 |||
242
↑↓ ↑ 0 |||
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.
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.
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 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.
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.
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
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.
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.
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.
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.
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.
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
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.
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.
Combined Management Report Non-financial statement 2023
245
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.
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.
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.
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.
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.
Identify strategic needs for skills and proactively shape
the transformation
2. Qualify and develop employees as needed
3. Help managers shape the transformation
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.
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
Combined Management Report Non-financial statement 2023
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.
→ Corporate governance, corruption and bribery
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.
Executive Board reporting
Risk strategy of the Porsche AG Group
Risk strategy
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.
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.
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.
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.
Opportunity management
Risk strategy
(incl. risk appetite)
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.
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.
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.
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.
↑↓ ↑ ||
258
↑↓ ↑ 0 |||
257
Combined Management Report Report on risks and opportunities
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.
Supervisory Board reporting
Reporting
44
259
Combined Management Report Report on risks and opportunities
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.
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.
Identification
Relevance assessment
Quantification
Control
Aggregation
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.
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
Operational
risks
Personnel
risks
Financial
risks
Supply
risks
Sales
risks
Strategic
risks
A risk inventory with all risks
Risk-bearing capacity calculation
240
246
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.
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.
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.
Diversity
Promote ethnic diversity and international experience
Facilitate the inclusion of employees with disabilities
5. Support the LGBTIQ community
7.
Establish an inclusive culture and an understanding
of diversity in all Porsche companies
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.
6. Improve cooperation between the generations within
the workforce
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
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.
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.
↑↓ ↑ 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.
Combined Management Report Non-financial statement 2023
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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.
In the reporting year 2023, those responsible for compliance
topics conducted numerous communication measures at
RESULTS
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.
Integrity
TARGETS
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.
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 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.
DUE DILIGENCE PROCESS
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
→ Methodological changes to the risk management system in the fiscal year 2023
compared to the prior year
Compared to the prior year, there were no adjustments to
opportunity management methodology in the current reporting
year 2023.
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
In the fiscal year 2023, significant changes were made to the
RMS of the Porsche AG Group.
Separate inventory: systemic risks, acute risks,
operational risks
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
Estimated risk scores for "Financial loss",
"Reputational damage", "Consequences under
criminal law" and a range for "Likelihood of
occurrence"
Methodological changes to the risk management
system
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.
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.
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 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.
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.
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.
252
Combined Management Report Non-financial statement 2023
253
254
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REPORT ON RISKS AND OPPORTUNITIES
GENERAL PRINCIPLES OF RISK AND
OPPORTUNITY MANAGEMENT
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.
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.
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.
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.
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.
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.
Risk-bearing capacity concept includes
consolidated equity
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.
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.
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.
The Porsche AG Group is driving digitalization in its departments
and offerings from vehicles and the associated services to
numerous digital interactions with customers.
Combined Management Report Non-financial statement 2023
248
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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.
247
MEASURES
Customer feedback is statistically analyzed to derive relevant
and needs-based measures to improve customer satisfaction
about data protection in the future.
Transparency: To what extent is the customer sufficiently
and clearly informed about their data processing?
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.
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.
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.
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?
Control: To what extent can the customer influence the
intended use of the data?
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.
Compliance
TARGETS
Training and information offerings were also expanded for all
Porsche AG employees in the reporting year.
Access to high-quality information
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
250
RESULTS
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.
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.
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.
Customer Excitement Index
CEI
GOVERNANCE
2023
2022
2021
46.7
n.a.
n.a.
%
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.
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.
MEASURES
TARGETS
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.
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.
DUE DILIGENCE PROCESS
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
>
>
User experience with displays and control elements
Porsche Connect services, charging of electric and
hybrid vehicles
>
Service
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.
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
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.
Internal control and risk management system in the
context of the group accounting process
1
91
308
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
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
Financial result
Share of other comprehensive income of equity-accounted investments
that will not be reclassified to profit or loss, net of tax
-40
19
Operating profit
6,772
Share of profit or loss of equity-accounted investments
7
-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
1
Interest income'
8
264
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
9
-279
1,582
22
-217
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
892
5.44
-308
-253
5.67
5.45
Cash flow hedges (OCI I), net of tax
700
599
Fair value changes recognized in other comprehensive income (OCI II)
-181
-982
Deferred taxes relating to cash flow hedges (OCI I)
-291
-40
1,299
231
-1,987
-1,929
Transferred to profit or loss
0
-231
-185
Exchange differences on translating foreign operations, before tax
-217
231
5,157
4,967
25
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
-3,979
Fair value changes recognized in other comprehensive income (OCI I)
Transferred to profit or loss or inventories (OCI I)
-1,662
-1,162
6
Other operating expenses
280
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
282
CONSOLIDATED STATEMENT OF CASH FLOWS
283
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
283 Basis of presentation
284
Significant events
284
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
IFRS 5-Assets held for sale
Impact of climate change
285
Basis of consolidation
290
Effects of new or amended IFRS
291
New and amended IFRS not applied
291
Currency translation
292
285
278
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
277
%
18.0
€40 to €42 billion
Between 15% and 17%
%
10.6
Between 8.5% and 10.5%
%
25.7
Between 24% and 26%
%
12.8
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
20
04
CONSOLIDATED FINANCIAL STATEMENTS
Carrera GT
276 CONSOLIDATED INCOME STATEMENT
Accounting policies
Transferred to profit or loss or inventories (OCI II)
304
307
5,157
4,967
2
-28,924
-27,089
11,606
10,549
3
-2,869
-2,353
Profit after tax
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
5
1,496
1,894
-396
37,637
40,530
1
Notes to the income statement
316
Notes to the consolidated statement of financial position
339
Other notes
275
↑↓ ↑ ||
276
CONSOLIDATED INCOME STATEMENT
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
Segment reporting
564
315
Cash flow hedges (OCI II), before tax
26222222
5,947
5,504
Financial liabilities
28
6,537
6,016
1,449
1,268
1,669
1,607
1,538
5,484
1,079
728
235
87
23
1,826
1,795
24
5,820
2,010
2,010
32
Deferred tax liabilities
Non-controlling interests
8
20
1,422
753
Non-current liabilities
15,211
14,027
21
78
100
Provisions for pensions and similar obligations
26
4,315
3,668
627
742
Other provisions
27
1,249
1,131
20,040
20,154
3,719
4,382
Other financial liabilities
Current liabilities
Provisions for taxes
1,231
5,287
50,447
47,642
Other liabilities
31
1,795
1,908
Tax payables
32
30
31
Liabilities associated with assets held for sale
5
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
↑↓ ↑ ||
64
Other financial liabilities
31
6
Other provisions
Financial liabilities
Trade payables
30
364
872
31
737
734
13,567
16,579
32
128
167
27
3,007
2,778
28
3,880
3,464
29
3,490
2,899
Other liabilities
4,676
19
17,027
5,628
6,908
thereof profit attributable to non-controlling interests
0
6
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
6,914
↑↓ ↑ |||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT AS OF DECEMBER 31, 2023
€ million
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Leased assets
Equity-accounted investments
Other equity investments
Financial services receivables
278
5,627
1,947
471
383
-667
Deferred taxes relating to cash flow hedges (OCI II)
-116
202
Cash flow hedges (OCI II), before tax
267
-464
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
Items that may be reclassified subsequently to profit or loss
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
Other financial assets
Other receivables
Deferred tax assets
Current assets
Subscribed capital
25
9,394
8,924
Capital reserves
21,668
911
3,822
17,035
911
3,822
4,190
3,854
Retained earnings
16,305
12,395
16
651
623
Other reserves
629
-101
16
814
636
Equity attributable to Porsche AG shareholders
21,667
Equity and liabilities
Equity
40,530
7,473
13
Inventories
Trade receivables
Financial services receivables
Other financial assets
Other receivables
Tax receivables
Securities and time deposits"
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'
€ million
Note
Dec. 31, 2023
Dec. 31, 2022¹
30,407
27,488
14,35
15,35
233222222
8,554
€ million
7,284
2023
Supply risks and opportunities
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 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.
↑↓ ↑ 0 |||
264
263
Combined Management Report Report on risks and opportunities
262
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 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.
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.
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.
INCREASING REGULATORY ENVIRONMENT
Geopolitical threats are identified and monitored at an early
stage as part of established projects, regular monitoring and
preventive crisis management.
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
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.
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 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.
Strategic risks and opportunities
> €1 billion
> €500 million-€1,000 million
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.
≤ €500 million
SUPPLY CHAIN PROBLEMS
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.
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.
↑↓ ↑ |||
266
265
Combined Management Report Report on risks and opportunities
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.
LITIGATION
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.
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.
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.
Operational risks and opportunities
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.
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.
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.
Sales risks and opportunities
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.
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.
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.
GEOPOLITICS
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.
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.
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.
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 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.
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 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.
Risk level
Low
Medium
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Combined Management Report Report on risks and opportunities
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.
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.
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).
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.
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.
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 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
RISK AND OPPORTUNITY SITUATION
RISK-BEARING CAPACITY
Risk transfer: Transferring a risk onto the balance sheet of
another company.
Risk reduction: The probability and/or impact of the risk is
reduced.
- Risk acceptance: The risk is accepted as identified.
Risk avoidance: The underlying situation is not entered into
in order to eliminate the risk.
In addition, the risk strategy also includes four overarching
pillars of managing risks.
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.
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.
→ Financial risk management and methods as well as opportunities
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.
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.
260
2024
Outlook
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).
High
AS OF DECEMBER 31, 2023
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.
Classification
The classification of the level of risk in the risk categories is
based on the following value limits:
Unchanged
Unchanged
Unchanged
Increased
Decreased
Unchanged
High
High
Medium
Low
High
High
Change on
prior year
Classification of
the level of risk
Sales risks
Operational risks
Personnel risks
Supply risks
Financial risks
Strategic risks
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.
Risk categories
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.
The key risks by risk category for the Porsche AG Group as of
December 31, 2023 are presented below. The risk categories
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.
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.
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.
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 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.
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, 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).
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.
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.
Overview of risks in the Porsche AG Group
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.
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.
Further information can be found in the comments on litigation
in the notes to the consolidated financial statements.
272
271
Combined Management Report Report on expected developments
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.
Development of energy supply and commodity
prices
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.
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.
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 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.
Geopolitical conflicts and tensions
FORECAST ASSUMPTIONS
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.
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.
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.
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.
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.
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.
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.
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 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 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.
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.
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
Development of global economy
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.
DEVELOPMENT OF THE GLOBAL ECONOMY AND
PASSENGER CAR MARKETS
Availability and price development of essential
parts
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.
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.
Legal risks may also arise due to the criminal actions of
individuals, which even the best compliance management
system can never fully rule out.
The Porsche AG Group plans to achieve an EBITDA margin
comparable to the reporting year of between 24% and 26%.
Automotive net cash flow margin is also expected to be lower
compared to the reporting year at between 8.5% and 10.5%.
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 BEV share
Automotive EBITDA margin
Automotive net cash flow margin
Automotive segment
Return on sales
Sales revenue
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.
Porsche AG Group
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.
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.
OVERALL STATEMENT ON ANTICIPATED
DEVELOPMENT
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.
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.
The 2024 forecast assumes that product launches can be
carried out as planned or that possible delays can be
compensated for accordingly.
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.
Product launches
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.
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.
Foreign currency rates
Forecast of the Porsche AG Group
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.
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.
REPORT ON EXPECTED DEVELOPMENTS
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).
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.
CURRENCY RISKS
Should, contrary to current planning and forecast assumptions,
market prices develop positively, this may also result in
opportunities for the Porsche AG Group.
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.
Market price risks and opportunities
→ Notes to the consolidated financial statements-36. Financial risk management
and financial instruments
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.
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.
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.
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.
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.
FINANCIAL RISK MANAGEMENT AND METHODS
AS WELL AS OPPORTUNITIES
No significant risks were identified in the "Personnel risks and
opportunities" risk category in the current fiscal year 2023.
Personnel risks and opportunities
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.
NON-FINANCIAL RISKS
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.
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.
CUSTOMS RISKS AND OPPORTUNITIES
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.
TAX RISKS AND OPPORTUNITIES
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.
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
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.
268
↑↓ ↑ ||
267
270
269
Combined Management Report Report on risks and opportunities
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.
SUMMARY
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.
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.
Liquidity risks
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.
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.
→ Notes to the consolidated financial statements-40. Litigation
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 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 RISKS
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 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.
EQUITY AND BOND PRICE RISKS
↑↓ ↑ 0 |||
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
Credit and default 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.
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.
-105
55
336
41
540
524
830
270
Summarized financial information on individually immaterial associates
€ million
66
1,008
331
Profit/loss from continuing operations after tax
36
-105
-33
Profit/loss from discontinued operations after tax
Other comprehensive income
Total comprehensive income
4
3
Sales revenue
-2
Consolidation/goodwill/others
Carrying amount of equity-accounted investments
4
IAS 1
1
550
7
-3
524
830
270
152
171
121
-30
61
122
232
207
581
418
337
512
489
528
232
86
EFFECTS OF NEW OR AMENDED IFRS
Earnings after tax from discontinued operations
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 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.
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.
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 above amendments do not materially affect the Porsche AG Group's results of operations, financial position
and net assets.
IFRS 17-Insurance Contracts
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.
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.
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.
NEW AND AMENDED IFRSS NOT APPLIED
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.
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
Standard/
Interpretation
Published by
the IASB
Application
mandatory'
Adopted by
the EU
Expected impact
September
IFRS 16
Sale and leaseback transactions
Classification of liabilities as
296
-33
22, 2022
fiscal year.
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.
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".
Porsche AG and its subsidiaries have applied all accounting pronouncements adopted by the EU and effective for
periods beginning in fiscal year 2023.
Other comprehensive income
Total comprehensive income
Dividends received
Bertrandt AG has a deviating fiscal year. The disclosures for Bertrandt's statement of financial position therefore relate to the
September 30, 2023 reporting date; the income statement disclosures for the fiscal year 2023 relate to the period from October 1, 2022
to September 30, 2023, and those for the fiscal year 2022 to the period from October 1, 2021 to September 30, 2022.
2 Measurement using the equity method is based on the provisional consolidated results of Rimac Group d.o.o..
3
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.
Carrying amount of equity-accounted investments
There are contingent liabilities due to associates of €206 million (2022: €124 million).
2023
2022
-54
-53
-54
-53
87
62
Consolidated Financial Statements Notes to the consolidated financial statements
289
↑↓ ↑ ||
290
Earnings after tax from continuing operations
-105
753
384
Profit/loss
Other comprehensive income
524
830
270
8
-86
-17
1
534
Net assets at Jan. 1
353
347
33
48
Changes in reserves
Dividends
8
41
-9
189
92
423
45
21
29
Summarized financial information on material associates on a 100% basis
current or non-current
€ million
2023
Equity interest (in %)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Sales revenue
Reconciliation of the financial information to the carrying amount of the investment
Bertrandt'
Rimac Group
Bugatti Rimac
€ million
Bertrandt
Rimac Group
Bugatti Rimac
527
525
498
2023
578
Net assets at Dec. 31
524
294
8
-86
-17
Net assets at Jan. 1
Dividends received
2
2022
Equity interest (in %)
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
29
21
45
Profit/loss
Other comprehensive income
Changes in reserves
Dividends
Net assets at Dec. 31
Attributable share of net assets
524
Total comprehensive income
-2
2022
Other comprehensive income
524
753
294
Attributable share of net assets
152
155
132
Consolidation/goodwill/others
-4
61
67
1,157
86
336
Carrying amount of equity-accounted investments
148
216
199
8
-86
-17
Profit/loss from continuing operations after tax
Profit/loss from discontinued operations after tax
1
January 23,
2020
Other equipment, furniture and fixtures
Yes
138.0236
151.9382
1.4596
1,413.5047
92.2994
0.9718
1.0817
140.6650
1.4440
1,338.2950
76.2868
0.9852
1.0677
99.9661
0.9264
1.1077
USD
USA
CHF
Switzerland
RUB
Russia
1.3705
1,440.7150
Republic of Korea
1.4681
CAD
Canada
156.7900
JPY
Japan
8.2530
8.4685
8.3210
KRW
1,358.1973
73.2742
1.0054
2022
Office and factory buildings
Technical equipment and machinery
Depreciation is largely based on the following useful lives:
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.
Property, plant and equipment
The amortization of intangible assets is allocated to the corresponding functional areas.
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
8.6529
Years
HKG
0.8526
€1 =
Average rate
Closing rate
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.
CURRENCY TRANSLATION
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.
No material impact
No
January 1,
2025
August 15,
2023
Dec. 31, 2023
Lack of exchangeability
Additional notes
No
No material impact
Yes
2024
January 1,
2024
May 25,
2023
Supplier finance arrangement
IFRS 7
IAS 7/
288
IAS 21
Dec. 31, 2022
2023
2022
0.8700
0.8868
0.8691
GBP
United Kingdom
7.0814
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
Hong Kong
9 to 40
7 to 20
3 to 13
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
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.
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.
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.
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.
298
↑↓ ↑ ||
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.
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.
Impairment of financial instruments
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.
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.
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).
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.
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.
The tax consequences of profit distributions are taken into consideration as soon as the profit distributions are
planned.
Current taxes
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.
No material impact
Yes
No material impact
IAS 1
Long-term liabilities with specific
credit terms
October 31, January 1,
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
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,
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.
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%.
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
To determine whether goodwill, intangible assets as well as property, plant and equipment are impaired, the group
uses the value in use.
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.
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".
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.
January 1,
2024
January 1,
2024
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.
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.
- liabilities to banks,
- other financial liabilities,
-trade payables,
The financial liabilities measured at amortized cost using the effective interest method arise from
-cash and cash equivalents.
-time deposits, and
- 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
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.
↑↓ ↑ 0 |||
and property, plant and equipment
5
238
454
12,395
3,822
911
8
8
8
17,027
8
-804
17,019
11
-804
238
454
12,387
3,822
911
ངང
17,035
8
0
11
0
17,027
5,628
0
471
0
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
0
-804
Other changes
Change from distribution in kind due to spin-off assets
Capital transactions involving a change in ownership interest
Profit transfer and dividends payment
Capital contribution
Disposal of equity instruments
6,914
6
6,908
1
Balance at Dec. 31, 2022'
22
599
231
6,519
299
Total comprehensive income'
1,947
0
1,948
1
22
-464
Balance at Jan. 1, 2023
Changes in accounting policy to reflect IFRS 17
Balance after adjustment at Jan. 1, 2023
238
454
-204
916
12,395
3,822
911
-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
11
5,627
-916
-72
-2,081
Additions to capitalized development costs
-1,710
-2,016
Effect of exchange rate changes on cash and cash equivalents
Investments in intangible assets (excluding capitalized development costs)
7,114
7,023
Cash flows from operating activities
-983
-1,951
-645
-536
-1,322
556
366
366
251
Change in leased assets
Change in other provisions
Change in pension provisions
-247
1,052
Change in financial services receivables
Acquisition of subsidiaries
-152
-257
Changes in other financial liabilities
Repayments of bonds
Proceeds from issuance of bonds
Capital transactions with non-controlling interests
Profit transfer and dividends
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
618
Change in liabilities (excluding financial liabilities)
-190
Change in receivables (excluding financial services)
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
↑↓ ↑ ||
281
Consolidated Financial Statements Consolidated statement of changes in equity
21,668
1
21,667
-916
-80
-8
-72
-916
-537
938
Equity is explained in note → 25. 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.
237
16,305
3,822
911
Balance at Dec. 31, 2023
Other changes
0
282
-464
€ million
2022¹
-1,010
-694
Change in inventories
-40
-122
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
2023
599
231
1,559
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.
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.
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.
The cumulative negative currency translation differences of €52 million in connection with the disposal group are
contained in other reserves.
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.
Consolidated Financial Statements Notes to the consolidated financial statements
285
↑↓ ↑ 0 ||
286
The composition of the Porsche AG Group is shown in the table below:
BASIS OF CONSOLIDATION
2023
Parent company and consolidated subsidiaries including special security funds
Germany
27
28
Abroad
90
86
Subsidiaries carried at cost
Germany
Abroad
Associates, joint ventures and other equity investments
2022
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.
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.
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.
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.
IFRS 5-ASSETS HELD FOR SALE
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.
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.
€ million
Cash and cash equivalents
Assets held for sale
Other provisions
Other liabilities
Liabilities associated with assets held for sale
Dec. 31, 2023
Dec. 31, 2022
6
26
6
31
3
7
2
4
5
12
IMPACT OF CLIMATE CHANGE
Germany
Abroad
13
12
42
Porsche Leipzig GmbH, Leipzig
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg
- Porsche Logistik GmbH, Stuttgart
Porsche Niederlassung Berlin GmbH, Berlin
- Porsche Niederlassung Berlin-Potsdam GmbH, Kleinmachnow
- Porsche Niederlassung Hamburg GmbH, Hamburg
-Porsche Niederlassung Stuttgart GmbH, Stuttgart
-Porsche Nordamerika Holding GmbH, Ludwigsburg
- Porsche Sales & Marketplace GmbH, Stuttgart
-Porsche Zentrum Hoppegarten GmbH, Stuttgart
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.
Investments in associates
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.
BERTRANDT AG
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.
As of December 31, 2023, the quoted price of the shares in Bertrandt amounted to €150 million (2022:
€118 million).
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).
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%).
RIMAC GROUP 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.
BUGATTI RIMAC D.O.O.
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.
Consolidated Financial Statements Notes to the consolidated financial statements
1
3
1
-Porsche Investments GmbH, Stuttgart
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.
-Porsche Immobilien GmbH & Co. KG, Stuttgart
-Porsche Engineering Services GmbH, Bietigheim-Bissingen
38
33
31
49
43
254
238
Fully consolidated subsidiaries
The changes in the consolidated group during the fiscal year are presented in the table below:
Number
Initially consolidated
Previously carried at cost
Foundation
Others
Deconsolidated
Mergers
Others
Germany
Abroad
1
1
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.
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.
Porsche Consulting GmbH, Bietigheim-Bissingen
-Porsche Deutschland GmbH, Bietigheim-Bissingen
-Porsche Dienstleistungs GmbH, Stuttgart
-Porsche Digital GmbH, Stuttgart
- Porsche Engineering Group GmbH, Weissach
- Porsche Erste Beteiligungsgesellschaft mbH, Stuttgart
-Porsche Financial Services GmbH, Bietigheim-Bissingen
287
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.
SIGNIFICANT EVENTS
-340
-361
223
9,146
14,225
45
Balance at Jan. 1, 2022
equity
Total
Non-controlling
interests
-11
non-controlling
interests
Equity-
accounted
investments
Equity and debt
instruments
Deferred costs of
hedging (OCI II)
hedges (OCI I)
Cash flow
Currency
translation
Retained
earnings
reserves
capital
Capital
Equity before
0
22,927
8
Other comprehensive income, net of tax
4,967
7
4,960
4,960
Profit after tax'
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
Subscribed
€ million
OTHER RESERVES
HEDGING
9,134
10,228
Gross liquidity
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
2 Offset against reversals of impairment losses.
The statement of cash flows is explained in note → 33. STATEMENT OF CASH FLOWS.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT AS OF DECEMBER 31, 2023
BASIS OF PRESENTATION
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.
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].
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.
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.
The accounting policies were generally the same as those applied in the prior year.
The only changes required resulted from new and amended standards.
The consolidated financial statements are prepared in euros. Unless stated otherwise, all figures are stated in
millions of euros (€ million).
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 income statement has been prepared using the function of expense method, as is common international
practice.
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 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.
Consolidated Financial Statements Notes to the consolidated financial statements
283
284
6,483
Russia-Ukraine conflict/Russian business (IFRS 5)
3,308
5,826
OTHER RESERVES
OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FOR THE PERIOD FROM
JANUARY 1 TO DECEMBER 31, 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
280
Net change in cash and cash equivalents
Cash and cash equivalents at end of period
3,075
-1,203
-2,021
-6,606
-4,895
-8
5,633
-4,304
-21
-113
3,057
-3,361
4,319
-4,745
-245
-115
-3,708
-1,089
-31
-2
2,081
-583
5,826
3,745
Cash and cash equivalents at end of period
Securities and time deposits and loans
3,745
↑ ↓ ↑ 0 |||
Cash flows from financing activities
Repayments of lease liabilities
1,761
NOTES TO THE INCOME STATEMENT
€ million
By region 2023
306
↑↓ ↑ |||
305
Consolidated Financial Statements Notes to the consolidated financial statements
308
7,081
7,375
91
6,772
7,284
7
Europe
44
1. SALES REVENUE
without
Germany
5,781
9,547
11,969
8,779
4,877
external customers
Germany
Sales revenue from
Porsche AG
Group
revenue
world
China²
Rest of the Hedges sales
North
America'
Structure of the group's sales revenue 2023
-424
6,766
37,637
ज
15
3,645
53
3,593
and property, plant and equipment
3,661
Investments in intangible assets
162
162
Reversal of impairment losses
145
145
140
162
7,241
1
Reconciliation
40,530
37,891
-253
40,793
-264
2022'
2023
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Consolidated profit before tax
Operating profit
Consolidation
Segment profit (operating profit)
Group sales revenue
Segment sales revenue
Consolidation
€ million
Financial result
40,530
€ million
Intangible assets, property,
Europe
without
Germany
Germany
€ million
-424
-424
-424
Other revenue
Hedges sales revenue
−11
450
450
0
financial services business
By region 2022¹
439
Interest and similar income from
2,674
2,690
external customers
Sales revenue from
40,530
-264
40,793
3,444
16
37,349
revenue
Rest of the Hedges sales
world
China³
North
America²
2,671
-19
Porsche AG
Group
1,345
-57
1,401
Group
Porsche AG
Total
segments Reconciliation
Financial
services
Automotive
2 incl. Hong Kong
Vehicles
1 excl. Mexico
151
135
4,398
339
17,115
plant and equipment and
lease assets
22,138
31,733
31,733
-87
1,401
1
Rental and leasing business
2,903
-90
2,992
1,577
1,415
Used vehicles and third-party products
1,949
0
1,950
1,950
Genuine parts
31,646
5
Impairment losses
3,159
-32
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.
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 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.
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.
Deviations from the assumptions made in the estimation process may cause differences to arise compared to the
original estimates.
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.
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.
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.
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.
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.
302
↑↓ ↑ ||
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.
301
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.
Consolidated Financial Statements Notes to the consolidated financial statements
Automotive
€ million
Reporting segments 2023
The business relationships between the companies of the segments of the Porsche AG Group are generally based
on arm's length prices.
Investments in intangible assets and property, plant and equipment are reported net of investments in right-of-use
assets from leases.
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.
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 purchase price allocation from acquired companies is directly allocated to the corresponding segments.
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
304
↑ ↓ ↑ 0 |||
303
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.
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.
2
241
21
Disposals
-
Classified as held for sale
300
2,454
1,338
5
Transfers
341
373
Additions
1,740
-1,338
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.
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.
In the case of financial instruments measured at amortized cost, interest income and expenses are determined
using the effective interest rate.
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.
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.
For more information on impairment testing and on the measurement parameters used please refer to the
explanations on impairment testing above.
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).
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.
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.
Government grants
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.
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.
Financial
services
4,643
Total
segments
Reconciliation
3,191
101
152
34,446
Sales revenue from external customers
Intersegment sales revenue
Porsche AG
Group
segments Reconciliation
Total sales revenue
Total
Automotive
€ million
Reporting segments 20221
4,097
19
4,078
Financial
services
33
34,599
37,637
253
37,891
3,191
895
2,296
Depreciation and amortization
6,772
7
3,292
6,766
6,425
Segment profit (operating profit)
37,637
-253
-253
37,637
341
4,045
Investments in intangible assets
and property, plant and equipment
137
Segment profit (operating profit)
40,530
-264
-264
264
40,793
40,530
6,938
40,530
37,349
Total sales revenue
136
37,213
Sales revenue from external customers
Intersegment sales revenue
Group
3,316
128
3,444
302
7,241
44
137
137
Reversal of impairment losses
162
162
160
2
Impairment losses
3,504
-34
3,537
883
2,654
Depreciation and amortization
7,284
Porsche AG
7,379
10,576
11,764
9,883
0
6,859
1,569
1,455
Balance at Jan. 1, 2022
Foreign exchange differences
10,793
1,782
1,696
Balance at Jan. 1, 2023
Depreciation and impairment
Depreciation and impairment
19,717
7,315
1,230
-13
-3
3
10
14
Changes in consolidated group
0
0
0
0
-1
0
0
-1
Foreign exchange differences
-17
Changes in consolidated group
26
9,039
6,544
Disposals
24
0
8
16
Classified as held for sale
70
Classified as held for sale.
-478
50
105
322
Transfers
178
-1
2,903
30
5
Balance at Dec. 31, 2022
21,322
1,381
9,951
3,186
6,803
217
Balance at Dec. 31, 2023
8
321
41
108
Disposals
322
478
Additions
286
248
10,793
7,315
1,782
1,696
Balance at Dec. 31, 2022
383
Carrying amount at
0
35
46
Disposals
277
11,927
7,998
2,008
302
1,922
Carrying amount at
4,881
↑↓ ↑
319
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
Dec. 31, 2023
1,725
4,848
Dec. 31, 2022
9,394
1,381
1,953
1,179
1,121
Balance at Dec. 31, 2023
205
23
5
impairment losses
0
0
impairment losses
Additions to cumulative
5
Additions to cumulative
759
233
280
Additions
1,315
780
1,272
Transfers
1
1
49
Disposals
9
3
5
Classified as held for sale
Classified as held for sale
0
0
-2
1
1
Transfers
113
112
-401
7,473
332
125
Classified as held for sale
-2
-2
Transfers
1
1
Disposals
impairment losses
1,355
959
396
amortization
Additions to cumulative
0
Additions to cumulative
0
2
240
Consolidated Financial Statements Notes to the consolidated financial statements
8,554
19
4,550
3,025
960
239
Dec. 31, 2023
7,405
1
0
5,452
1,952
Balance at Dec. 31, 2023
Carrying amount at
317
Changes in consolidated group
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.
3
2 excl. Mexico
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
136
161
4,070
incl. Hong Kong
304
lease assets
plant and equipment and
Intangible assets, property,
37,637
-1,290
4,566
15,580
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.
Sales revenue is allocated to the regions in accordance with the destination principle.
Balance at Dec. 31, 2023
-1
-1
Foreign exchange differences
6,293
1
4,732
The allocation of interregional intragroup transactions regarding the segment assets is presented uniformly
according to economic ownership.
1,560
Amortization and impairment
264
15,959
19
4,551
8,477
2,911
Balance at Jan. 1, 2023
↑↓ ↑ ||
318
14. PROPERTY, PLANT AND EQUIPMENT
Changes in consolidated group
0
0
0
Changes in consolidated group
8
67
1
0
7
Foreign exchange differences
-47
18,646
993
0
9,016
16
7
Transfers
1,473
716
299
194
263
3
Additions
558
802
193
243
Additions
94
1,796
2,629
6,008
Balance at Jan. 1, 2022
€ million
Development of property, plant and equipment from January 1 to December 31, 2022
Total
construction
fixtures
machinery
Land, land rights
and buildings,
third-party land
Technical
equipment and
incl. buildings on
and buildings,
€ million
Land, land rights
Development of property, plant and equipment from January 1 to December 31, 2023
Other equipment, Advance payments
furniture and and assets under
incl. buildings on
third-party land
Technical
equipment and
machinery
19,717
1,230
-1
-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
121
19
4,150
2,309
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
356
80
Interest result
-77
-130
The decrease in the result of unwinding the discount on/discounting other non-current liabilities is mainly
attributable to interest rate developments.
Net interest on the net defined benefit liability
Interest result from discounting other non-current liabilities
-26
-34
Interest expenses included in lease payments
-17
Other interest and similar expenses
-2
-105
9. OTHER FINANCIAL RESULT
Other income from equity investments
-99
83
-62
-47
37
2022
€ million
2023
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
Realized income of loan receivables and payables in foreign currency
Income and expenses from securities and loans
Other expenses from equity investments
Other financial result
གླ[8/8」
-184
151
23
2
17
23
10
14
15
10
14
2022
2023
Miscellaneous other operating income mainly consists of other recourse income.
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.
10
Interest expense
-9
↑↓ ↑
Interest result from discounting other non-current liabilities
310
264
Other interest and similar income
461
264
-7
Interest income
2023
€ million
8. INTEREST RESULT
310
309
Consolidated Financial Statements Notes to the consolidated financial statements
20221
25
78
-32
tax loss carryforwards
Thereof unusable
Previously unused
The tax loss carryforwards as well as the lapse of previously unused tax loss carryforwards developed as follows:
2022¹
2023
Profit before tax
€ million
↑↓ ↑ 0 |||
311
Consolidated Financial Statements Notes to the consolidated financial statements
As in the prior year, income relating to other periods largely relates to the USA in the current fiscal year.
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.
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.
Reconciliation of estimated to recognized income tax
2,114
Group tax rate in %2
Effects of different tax rates
69
45
Non-expiring tax loss carryforwards
Dec. 31, 2022¹
Dec. 31, 2023
Dec. 31, 2022'
Expected income tax expense
Dec. 31, 2023
2,124
30.0
30.2
2,227
€ million
7,081
7,375
tax loss carryforwards
2,218
185
231
of which prior-period income (-)/expense (+)
Current tax expense, other countries
Current income tax expense
Current tax expense, Germany
€ million
Composition of tax income and expense
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.
Deferred tax income (-)/expense (+), Germany
10. INCOME TAX
-40
19
31
-39
64
-61
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.
Deferred tax income (-)/expense (+), other countries
Deferred tax income (-)/expense (+)
Income tax income/expense
-224
-51
409
283
-10
-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).
1,894
43
1,496
265
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
37,637
-253
37,891
2,892
-17
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).
2,911
2,875
34,599
Other revenue
-1,290
-1,290
-1,290
Hedges sales revenue
35
3,292
323
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.
Consolidated Financial Statements Notes to the consolidated financial statements
€ million
Other operating income breaks down as follows:
5. OTHER OPERATING INCOME
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.
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.
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.
3. DISTRIBUTION EXPENSES
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.
2. COST OF SALES
308
↑↓ ↑
307
Profit-related government grants in the fiscal year amounted to €9 million (2022: €41 million) and were generally
allocated to the corresponding function.
6. OTHER OPERATING EXPENSES
-2
325
20,251
€ million
Automotive
Financial
services
Total
Porsche AG
Structure of the group's sales revenue 20221
segments Reconciliation
Vehicles
29,947
29,947
-103
29,844
Genuine parts
Group
325
0
Used vehicles and third-party products
0
financial services business
Interest and similar income from
1,293
-33
1,326
1,761
1,325
Rental and leasing business
2,813
-98
2,912
1,607
1,305
1
€ million
2023
2022
47
7
Income from derivatives not within hedge accounting financial services segment
Share of losses of equity-accounted investments
306
157
of which from joint ventures
Income from derivatives within hedge accounting
93
111
Income from reversal of provisions and accruals
of which from joint ventures
34
30
of which from associates
Income from reversal of valuation allowances on receivables and other assets
Income from other hedges
233
Miscellaneous other operating income
54
60
Other rental income
165
139
231
Gains on asset disposals and the reversal of impairment losses
280
Income from cost allocations
310
216
Income from foreign exchange gains
of which from associates
300
Share of profits of equity-accounted investments
2022
2023
178
148
3
15
Expenses from derivatives not within hedge accounting financial services segment
Expenses from other hedges
291
Foreign exchange losses
94
70
54
Valuation allowances on other receivables and other assets
7
11
Valuation allowances on trade receivables
Expenses from derivatives within hedge accounting
373
380
Losses on disposal of non-current assets
€ million
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.
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
352
68
Expiry within 10 years
17
73.6
73.5
12
10
2
Changes in consolidated group
Additions
6.7
2,081
1
0
13,052
10
2,479
1,951
8,353
0
374
1,845
Classified as held for sale
Disposals
15.3
1,484
1,712
Research and development costs recognized in the income statement
1
106
-165
1
Transfers
22.4
784
960
2,325
165
3
1
6.9
2023
€ million
Research and development costs in the reporting period developed as follows:
13. INTANGIBLE ASSETS
NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
316
2022
↑ ↓ ↑ 0 |||
Consolidated Financial Statements Notes to the consolidated financial statements
5.45
5.67
5.44
5.66
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
315
Foreign exchange differences
%
€ million
2,651
2,834
Amortization of capitalized development costs
thereof capitalized development costs
Total research and development costs
Capitalization ratio in %
Development of intangible assets from January 1 to December 31, 2022
2,210
Cost
Total
Goodwill
Capitalized
Capitalized
development development costs
costs for products for products under
currently in use development
intangible assets
Other
Balance at Jan. 1, 2022
0
3
29
4,150
7,040
2,556
Balance at Jan. 1, 2023
25
Disposals
Foreign exchange differences
Cost
2
0
1
100
Classified as held for sale
Transfers
2
Total
-1
20
-1
995
Dec. 31, 2022
0
0
Changes in consolidated group
Carrying amount at
0
-2
1
1,608
1,583
4,732
1,560
Balance at Dec. 31, 2022
13,766
6,293
Goodwill
impairment losses
Additions to cumulative
5,531
1,330
Balance at Jan. 1, 2022
13,766
20
4,150
6,862
7,040
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
7
1,585
2,556
Foreign exchange differences
1
0
development development costs
costs for products for products under
currently in use development
intangible assets
€ million
Other
1,039
784
255
amortization
Capitalized
Capitalized
Additions to cumulative
1
1
Changes in consolidated group
0
€
€
2,482
2,581
Deferred tax assets
Other equity investments
Inventories
Intangible assets, property, plant and
equipment and leased assets
€ million
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.
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).
Deferred tax liabilities
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).
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 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.
3
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.
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.
Dec. 31, 2023
Dec. 31, 2023
145
385
48
26
Receivables and other assets
(including financial services)
Securities
33
Dec. 31, 2022
31
3,394
1
6
130
15
30
10
Dec. 31, 2022¹
3,063
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
101
Total
-2
7
Effects of loss carryforwards and tax credits
34
88
4
Expiry over 10 years
-20
-90
13
17
15
39
94
81
Tax-exempt income and non-deductible business expenses
-55
Effective tax rate in %
Reported income tax expense
Effects of spin-off
0
Other differences
1
-5
Effect of tax rate changes³
-8
-10
Taxes relating to other periods
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
74
89
0
1,761
1
3
thereof basic/diluted earnings attributable to ordinary shares
thereof basic/diluted earnings attributable to preferred shares
Earnings attributable to Porsche AG shareholders
Earnings after tax
Non-controlling interests
Preferred shares-basic/diluted
Weighted average number of:
Ordinary shares-basic/diluted
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:
Earnings per ordinary share-basic/diluted
Earnings per preferred share-basic/diluted
12. EARNINGS PER SHARE
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.
Global minimum taxation
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.
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.
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.
2023
Shares
Shares
€ million
2,478
2,576
€ million
4,960
5,157
2022¹
€ million
0
€ million
4,967
5,157
€ million
455,500,000 455,500,000
455,500,000 455,500,000
7
314
313
Consolidated Financial Statements Notes to the consolidated financial statements
3,896
2,120
2,237
32
67
1,535
3,298
1,512
19
496
642
2
2
Unused tax loss carryforwards and tax credits
Provisions for pensions and similar obligations
Liabilities and other provisions
23
-1,990
-1,763
380
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).
312
Consolidation
Offsetting
Gross value
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
0
-2
-3
Consolidated Financial Statements Notes to the consolidated financial statements
22. TAX ASSETS
€ million
Deferred tax assets
Tax receivables
Total
Carrying amount
Carrying amount
Dec. 31,
Current Non-current
2023
Current Non-current
Dec. 31,
2022
627
627
742
326
742
↑↓ ↑ ||
Consolidated Financial Statements Notes to the consolidated financial statements
19
20
2023
2022
99
67
-33
-27
66
41
-47
-21
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.
325
235
235
87
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.
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.
Dividends and proposed dividend
5,820
1,316
2,403
4,173
1,647
87
235
627
862
87
742
829
0
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.
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
Dec. 31, 2023
Dec. 31, 2022
23. SECURITIES AND TIME DEPOSITS
0
6
0
397
412
1,422
3,432
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
19
20
20
1,079
78
100
312
534
78
813
1,445
609
1,988
281
5,203
511
791
1,157
243 5,446
603
0
603
397
0
Miscellaneous receivables
457
Other recoverable income taxes
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.
728
829
1,215
606
The contingent receivables from long-term construction contracts break down as follows:
Assets related to derivatives not included in hedging relationships
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.
Contract costs including outcome of the long-term construction contracts
thereof services billed to customers
Future receivables from long-term construction contracts
Advance payments received
20
13
606
1,215
foreign currency and interest rate risk from future cash flows (cash flow hedges)
Hedging transactions (interest and currency)
Transactions for hedging:
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.
No significant valuation allowances were recognized for miscellaneous financial assets. The maximum default risk
corresponds to the net carrying amounts of miscellaneous financial assets.
The positive fair values of derivative financial instruments relate to the following items:
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:
100
€ million
2022
€ million
Contingent construction contract receivables at Jan. 1
Additions and disposals
Dec. 31, 2023
Dec. 31, 2022
Change in valuation allowances
Contingent construction contract receivables at Dec. 31
2023
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 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.
Other reserves
71
2
1
-63
-58
-5
-4
-1
-4
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 payroll trends cover expected wage and salary increases, which also include increases attributable to career
development.
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
18
Actuarial gains(-)/losses (+) arising from experience adjustments
-2,323
377
4.15
4.48
Interest expense
136
80
4.60
3.30
Past service cost (including plan curtailments)
Gains (-) or losses (+) arising from plan settlements
Changes in consolidated group
2.44
2.20
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
2.51
3.60
Other changes
Employee contributions and deferred compensation
Net interest expense
130
77
Actuarial gains (-)/losses (+) arising from changes in demographic assumptions
Actuarial gains (-)/losses (+) arising from changes in financial assumptions
1
-22
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
320
167
5,525
3,667
Present value of obligations at December 31
€ million
2023
2022
1
-6
0
Foreign exchange differences from foreign plans
2
51
4,456
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
50
631
1,379
2,010
3.20
167
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
150
-142
128
-113
8
14
4,306
3,653
4,314
3,667
Funded status (net)
Fair value of plan assets
Present value of funded benefit obligations
€ million
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
327
4,315
↑↓ ↑ |||
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.
The following amounts were recognized in the statement of financial position for defined benefit plans:
328
320
3,668
0
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
%
The calculation of pension provisions was based on the following significant actuarial assumptions:
Measurement of the provisions for pensions of the Porsche AG Group
330
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.
1
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.
Miscellaneous financial assets
financial instruments
Positive fair value of derivative
Cost
Carrying amount at Dec. 31, 2023
651
814
1,465
Balance at Jan. 1, 2022
5,744
Foreign exchange differences
Changes in consolidated group
287
0
Additions
Transfers
Disposals
Balance at Dec. 31, 2022
217
52
165
31
866
1,683
Development of leased assets from January 1 to December 31, 2022
€ million
Leased assets
Impairment losses
Balance at Jan. 1, 2023
Additions
Depreciation and impairment
Reversal of impairment losses
192
26
218
31
31
27
5
Balance at Dec. 31, 2022
817
2,150
2,395
321
↑↓ ↑ ||
322
Development of equity-accounted investments and other equity investments from January 1 to
December 31, 2022
€ million
inventories, leased vehicles returned amounting to €24 million (2022: €6 million) are pledged as security under
asset-backed securities transactions.
18. TRADE RECEIVABLES
Equity-accounted
investments
Other equity
investments
Total
€ million
Dec. 31, 2023
Dec. 31, 2022¹
Cost
Consolidated Financial Statements Notes to the consolidated financial statements
3,854
1,926
Carrying amount at Dec. 31, 2022
5,781
Balance at Jan. 1, 2022
1,790
Foreign exchange differences
91
Changes in consolidated group
0
-6
Additions
Additions to cumulative impairment losses
140
Disposals
781
Reversal of impairment losses
162
Balance at Dec. 31, 2022
847
Balance at Jan. 1, 2022
Balance at Dec. 31, 2023
-2
Disposals
2,367
Balance at Dec. 31, 2023
Depreciation and impairment
Balance at Jan. 1, 2023
Foreign exchange differences
Changes in consolidated group
Additions
Additions to cumulative impairment losses
Disposals
Reversal of impairment losses
6,121
€ million
Equity-accounted
investments
Other equity
investments
Development of equity-accounted investments and other equity investments from January 1 to
December 31, 2023
2
2,900
Transfers
320
15. LEASED ASSETS
Development of leased assets from January 1 to December 31, 2023
€ million
Leased assets
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.
Group entities in the financial services segment act as lessor, primarily leasing their own products.
Total
Cost
Foreign exchange differences
Changes in consolidated group
5,781
-194
16. EQUITY-ACCOUNTED INVESTMENTS AND OTHER EQUITY INVESTMENTS
0
Additions
Balance at Jan. 1, 2023
-2
1,926
Cost
7
137
Changes recognized directly in equity
0
-3
-2
Balance at Dec. 31, 2023
Carrying amount at Dec. 31, 2023
1,931
Changes recognized in profit or loss
-9
-13
-22
4,190
Dividends
7
Disposals
789
245
Balance at Jan. 1, 2023
815
662
1,477
0
Foreign exchange differences
-2
-63
-2
Changes in consolidated group
-4
-4
160
Additions
13
232
833
Discount trend
Foreign exchange differences
338
3,620
51
3,671
Receivables from
operating leases
5
5
5
26
26
26
Receivables from
finance leases
720
1,669
1,531
4,676
2,251
6,345
48
3,740
3,692
2,876
13
2,889
851
Current Non-current
Dec. 31,
2022
Dec. 31,
2022
Receivables from
financing business
Customer financing
Dealer financing
895
49
2,349
6,580
944
3,934
156
4,057
169
816
35
4,089
4,226
3,039
107
3,146
Dec. 31,
2023
661
1,538
Dec. 31, 2023
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
Carrying amount
Current
Non-current Dec. 31, 2023
Current
Non-current Dec. 31, 2022
€ million
€ million
20. NON-CURRENT AND CURRENT OTHER FINANCIAL ASSETS
324
↑↓ ↑ 0 ||
Dec. 31, 2022
400
481
325
387
4,839
4,362
1,494 2,154 2,119
4,382 5,920 5,816
49
333
244
1
5,947
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
323
29
720
Dec. 31,
2023
Fair value
Changes recognized directly in equity
1
22
23
Changes recognized in profit or loss
-7
5
-2
Dividends
-1
-1
Balance at Dec. 31, 2022
815
662
1,477
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
82
82
Disposals
1,058
1
1
Trade receivables from
third parties
Changes in consolidated group
0
-14
Impairment losses
-14
Additions
101
394
495
1,008
440
1,449
750
519
1,268
related parties
Current Non-current
Balance at Jan. 1, 2022
25
The equity-accounted investments include associates amounting to €651 million (2022: €623 million) and joint
ventures amounting to €0 million (2022: €0 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".
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).
17. INVENTORIES
€ million
Raw materials, consumables and supplies
Work in progress
Finished goods and merchandise
Current rental and leasing assets
Advance payments made
Hedges on inventories
€ million
Carrying amount
Fair value
Carrying amount
1,259
636
623
As of the end of the reporting period, financial services receivables break down as follows:
25
172
Additions
Reversal of impairment losses
Balance at Dec. 31, 2022
Carrying amount at Dec. 31, 2022
45
147
3
0
0
192
26
218
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.
19. NON-CURRENT AND CURRENT FINANCIAL SERVICES RECEIVABLES
47
Employer contributions to plan assets
Capital reserves
Pension payments from company assets
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.
30. NON-CURRENT AND CURRENT OTHER FINANCIAL LIABILITIES
As of the end of the reporting period, other financial liabilities break down as follows:
€ million
Carrying amount
Carrying amount
Current Non-current
Dec. 31,
2023
Current Non-current
Dec. 31,
2022
As of the end of the reporting period, other liabilities break down as follows:
Carrying amount
31. NON-CURRENT AND CURRENT OTHER LIABILITIES
Dec. 31, 2023
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).
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%).
Consolidated Financial Statements Notes to the consolidated financial statements
335
↑↓ ↑ ||
336
29. TRADE PAYABLES
€ million
Trade payables
Dec. 31, 2022
Carrying amount
Current
Non-current Dec. 31, 2023
8
-
8
9
-
9
223
2
225
283
5
288
253
169
422
632
4
627
411
Current
Non-current Dec. 31, 2022
Payments received on account
of orders
904
562
1,466
733
3,880
582
Liabilities relating to
other taxes
social security
wages and salaries
Miscellaneous liabilities
407
4
1,315
255
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
1
change in discount rate
-98
-53
-151
Reversals
22
21
23
53
118
Balance at Dec. 31, 2022
1,725
893
79
1,213
Unwinding of discount/effect of
3,909
Non-current Dec. 31, 2022
Non-current Dec. 31, 2023
Carrying amount
Utilization
917
558
111
219
1,805
Additions/New provisions
1,098
674
33
825
2,630
€ million
Current
Current
ABS- refinancing
Debenture bonds
Liabilities to banks
3,104
4,316
79
1,141
2,778
Lease liabilities
113
934
1,047
106
940
1,046
72
1,131
Other financial liabilities
61
61
672
220
886
839
of which non-current
of which current
7,420
2,791
3,490
6,282
304
957
1,260
1
229
1,488
299
329
629
337
326
663
1,260
143
398
1,795
Dec. 31,
2022
Deferred tax liabilities
2,010
2,010
1,607
1,607
Income tax provisions
Tax payables
Total
128
31
159
128
167
167
31
64
Current Non-current
64
Dec. 31,
2023
Carrying amount¹
-141
97
-96
-22
21
-222
1
-10
9
Consolidated Financial Statements Notes to the consolidated financial statements
337
↑↓ ↑ 0 |||
338
32. TAX LIABILITIES
€ million
Carrying amount
Current Non-current
2,010
2,169
231
189
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
312
592
4
Dec. 31, 2022
Dec. 31, 2023
1 Dividends from joint ventures and associates as well as other equity investments.
1,607
1,838
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
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.
143
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.
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.
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.
Cash flows from operating activities presented in the statement of cash flows include:
€ million
Interest paid
Interest received
Dividends received'
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.
Dec. 31, 2023 Dec. 31, 2022
Future receivables from long-term construction contracts
Advance payments received
Cost of conversion including outcome of the long-term construction contracts
thereof services billed to customers
and from tax relief with Porsche Holding
Stuttgart GmbH
0
0
3,990
3,990
Miscellaneous financial liabilities
848
1,231
64
364
912
626
240
870
1,595
€ million
Liabilities from profit/loss transfer agreement
13
1,285
737
2,532
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:
5,287
Negative fair values of
368
299
Interest payable
16
667
16
654
13
631
Employee contributions to plan assets
Carrying amount
872
Miscellaneous financial liabilities include liabilities from minority shareholders' call rights of €0 million (2022:
€174 million).
1,236
183
94
Changes in consolidated group
-1
Classified as held for sale
-2
Foreign exchange differences
-32
-12
Liabilities from advance payments received under contracts with customers at Dec. 31
1,466
1,315
This also includes liabilities from long-term construction contracts:
€ million
1,315
Liabilities from advance payments received under contracts with customers at Jan. 1
Additions and disposals
2022
2023
The item derivative financial instruments marked to market mainly comprises forward exchange transactions,
currency options and interest rate swaps.
The negative fair values of derivative financial instruments relate to the following items:
€ million
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
6,158
565
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.
1,206
1,206
7
derivative financial instruments
1
Real estate funds
Other funds
3,377
247
2,836
Other
203
832
741
Fair value of plan assets
4,456
3,781
89553
8
14
14
Pension funds
19
Equity funds
2022
Dec. 31, 2023
Dec. 31, 2022
Quoted prices
in active
markets
No quoted
prices in
active
markets
Quoted prices
No quoted
prices in
in active
Total
markets
active
markets
Total
Cash and cash equivalents
Equity instruments
19
Debt instruments
20
20
5
0
0
1
142
0
142
113
0
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
1
0
1
22
4
4
35
20
20
34
34
€ million
29
4
4
4
4
38
38
22
29
Plan assets are invested in the following asset categories:
2023
Members with vested entitlements who have left the company
Pensioners
-10.28
3,406
-18.78
4,997
12.15
4,221
8.57
Pension trend
1
is 0.5
percentage
points higher
4,687
5.19
3,968
-0.51
-3
3,998
is 0.5
percentage
points higher
is 0.5
percentage
points lower
change in percent
€ million
0
Past service cost (including plan curtailments)
Gains (-) losses (+) from plan settlements
Changes in consolidated group
Other changes
-27
-17
Foreign exchange differences from foreign plans
1
-63
-58
-4
Dec. 31, 2023
Dec. 31, 2022
€ million
change in percent
0
The table below shows the development of plan assets:
-1
is 0.5
percentage
points lower
3,755
-7.29
4,560
2.33
3,927
-3.57
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).
€ million
Active members with pension entitlements
-0.68
4,426
is 0.5
percentage
points lower
increases by
one year
Longevity
4,248
-4.68
3,612
-11.69
Employee contributions and deferred compensation
50
51
2
Payroll trend
4,314
3,667
is 0.5
percentage
points higher
4,494
0.85
3,813
-5.28
Net liability recognized in the statement of financial position at December 31
€ million
The present value of the defined benefit obligation is attributable as follows to the members of the plan:
The following amounts were recognized in the income statement:
Unwinding of discount/effect of
change in discount rate
-17
17
-3
-3
Reversals
58
16
23
100
197
Balance at Dec. 31, 2023
2,020
1,010
-41
49
41
2,799
Changes in consolidated group
1
1
Classified as held for sale
Utilization
1,011
613
21
585
2,229
Additions/New provisions
1,356
732
15
695
Transfers
1,176
of which current
1,066
Foreign exchange differences
5
1
0
0
7
Changes in consolidated group
0
8
-1
6
Classified as held for sale
6
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%).
0
3,348
660
173
850
746
49
1,146
3,007
of which non-current
954
264
-24
31
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.
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.
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.
28. NON-CURRENT AND CURRENT FINANCIAL LIABILITIES
Financial liabilities break down as follows:
Balance at Jan. 1, 2022
1,665
1,249
-4
4,256
-2
Interest income on plan assets determined using the discount rate
Income/expenses from plan assets not included in interest income
Employer contributions to plan assets
27
Pension payments from plan assets
Other changes
Foreign exchange differences from foreign plans
Fair value of plan assets at December 31
26-2-500
144
3
-47
17
1
1
-4
113
0
Fair value of plan assets at January 1
2023
€ million
82
-1
81
379
328
3,995
3,372
4,456
3,781
Current service cost
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
2022
0
Employee contributions to plan assets
142
334
27. NON-CURRENT AND CURRENT OTHER PROVISIONS
€ million
Obligations arising
from sales
Employee
expenses
Litigation and
legal risks
Miscellaneous
provisions¹
Total¹
Balance at Jan. 1, 2023
1,725
893
79
-1
3,909
Foreign exchange differences
-16
↑↓ ↑O ||
333
1,213
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
113
The investment of plan assets to cover future pension obligations resulted in income of €6 million (2022: expenses
of €44 million).
2023
2022
167
320
130
In the next fiscal year, employer contributions to plan assets are expected to amount to €22 million (2022:
€32 million).
-1
-4
297
77
393
-10%
Hedged item is recognized at a point in time
-785
752
-772
Dec. 31, 2023
787
Hedging reserve
Gains and losses from non-designated forward components and CCBS
-735
Balance at Jan. 1
Exchange rate
EUR/USD
-10%
-148
+10%
+10%
Dec. 31, 2022
-255
-781
Reclassifications due to realization of the hedged item
-18
2022
-70
Reclassification due to changes in whether the hedged item is expected to occur
Profit/loss after tax
70
8
-65
65
Hedging reserve
302
317
Hedged item is recognized at a point in time
EUR/TWD
35
-35
-8
18
Profit/loss after tax
€ million
119
2023
hedged item is expected to occur
whether the
Reclassifications due to changes in
902
5
0
1,008
-112
Gains or losses from effective hedging
relationships
238
1
-12
118
-72
Balance at Jan. 1, 2023
-4
Total
-102
The table below shows the sensitivities as of December 31, 2023 with respect to the key currencies held.
-102
4
Currency risk
€ million
Changes in the reserve for hedging costs-non-designated forward components and cross-currency
basis spreads (CCBS)
358
↑ ↓ ↑ 0 |||
357
Consolidated Financial Statements Notes to the consolidated financial statements
938
-100
16
0
בוס
921
11
Balance at Dec. 31, 2023
−1
-104
Reclassifications due to realization of the
hedged item
4
0
40
121
Hedging reserve
Hedging reserve
Profit/loss after tax
EUR/SGD
Hedging reserve
Profit/loss after tax
EUR/HKD
Hedging reserve
Profit/loss after tax
EUR/SEK
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.
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.
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).
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.
Currency risk
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).
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.
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.
Interest rate risk
EUR/CHF
-1,024
104
1,013
-104
ཀླY
77
-125
-118
-2
-18
-83
72
802
17
1
-1
0
-23
24
-23
24
3
-3
2
-2
112
-77
Profit/loss after tax
-630
36.4.2 MARKET RISK IN THE AUTOMOTIVE SEGMENT
EUR/PLN
0
0
1
-1
Profit/loss after tax
-11
11
-23
23
Hedging reserve
-734
-525
Balance at Dec. 31
EUR/MXN
0
Hedging reserve
64
-64
19
740
Hedging reserve
EUR/CNY
13
-153
153
-13
-185
11
-11
Hedged item is recognized at a point in time
Profit/loss after tax
Hedging reserve
EUR/GBP
3
-3
0
0
Profit/loss after tax
-19
185
35
ויוי
Commodity
price risk
355
Consolidated Financial Statements Notes to the consolidated financial statements
36
10
-3
9
10
0
Total hedging commodity price risk
Non-designated components
Deferred taxes
Designated components
Hedging commodity price risk
Total hedging combined interest rate and
currency risk
The change in fair value presented in the table to calculate ineffectiveness corresponds to the change in fair value
of the designated components.
Commodity forwards/swaps
Hedging commodities price risk
2
↑↓ ↑ |||
2
356
Reserve for
0
-373
12
Balance at Jan. 1, 2022
cash flow hedges
Active cash flow hedges
Discontinued
determine hedge
ineffectiveness
Changes in fair value to
€ million
Total
Commodity
price risk
Interest rate/
currency risk
Currency risk
Interest rate risk
€ million
Development of the cash flow hedge reserve (OCI I) 2022
Disclosures on hedged items used in cash flow hedges 2022
32
Interest rate/currency swaps
currency risk hedging
Disclosures on hedging instruments used in cash flow hedges 2022
Deferred taxes
Non-designated components
9
6
15
431
374
currency risk hedging
Combined interest rate and
Interest rate/currency swaps
currency risk hedging
Hedging commodities price risk
Designated components
21
Commodity forwards/swaps
0
€ million
Fair value changes
Notional amount
Other assets
Combined interest rate and
288
-31
183
1,022
262
152
23,187
Currency options
32,238
Gains or losses from effective hedging
relationships
Currency forwards and cross-currency swaps
168
0
190
6,633
Interest rate swaps
Hedging interest rate risk
to determine hedge
ineffectiveness
Other liabilities
Hedging currency risk
Hedged item is recognized at a point in time
Balance at Dec. 31
113
1
Total hedging commodity price risk
Currency risk
0
Deferred taxes
Non-designated components
Changes in the reserve for hedging costs-non-designated time value of options
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.
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.
Designated components
Hedging commodity price risk
2
Total hedging combined interest rate and
currency risk
0
Deferred taxes
Non-designated components
1
2
€ million
Designated components
2023
Changes in the reserve
Interest rate/
currency risk
Currency risk
Interest rate risk
€ million
Reclassification due to realization of the hedged item
1
Hedged item is recognized at a point in time
Reclassifications due to changes in whether the hedged item is expected to occur
97
21
Hedged item is recognized at a point in time
Gains and losses from non-designated time value of options
-85
-70
Balance at Jan. 1
Development of the cash flow hedge reserve (OCI I) 2023
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:
2022
currency risk hedging
Combined interest rate and
-685
hedged item
0
-45
Deferred taxes
Reclassifications due to realization of the
Non-designated components
-45
hedged item is expected to occur
0
164
169
whether the
Reclassifications due to changes in
Designated components
Hedging interest rate risk
-20
-361
-7
672
Total hedging interest rate risk
169
252
Total hedging currency risk
296
Deferred taxes
-1,152
Non-designated components
171
252
-134
Designated components
664
238
-45
1
119
118
Balance at Dec. 31, 2022
0
118
Hedging currency risk
-22
Current financial liabilities
2
42
10,417
Balance at Dec. 31, 2023
1,323
14
58
1,394
Other financial assets and
Depreciation and impairment
liabilities
-1
1
0
Balance at Jan. 1, 2023
310
4
30
0
344
-299
9,480
-91
0
-89
1,950
Classified as held for sale
Lease liabilities'
1,046
-113
-18
132
1,047
Disposals
64
1
11
76
Total third-party borrowings
1,194
Financial assets and
Foreign exchange differences
-8
43
1
11
55
377
4
31
412
946
10
27
982
Presentation of and changes in right-of-use assets from January 1 to December 31, 2022
Non-cash changes
Balance at
€ million
Jan. 1, 2022
Carrying amount at Dec. 31, 2023
Balance at Dec. 31, 2023
Disposals
Other changes to lease liabilities largely include non-cash additions to lease liabilities.
0
-8
liabilities in financing
Additions to cumulative depreciation
117
1
12
131
-22
activities
1,194
-299
0
42
10,417
Classified as held for sale
-
-
9,480
Cash-
effective
changes
2,152
Other total third-party
-65
66
-50
50
Hedging reserve
EUR/AUD
9
-9
11
-11
Profit/loss after tax
-82
84
-91
93
Hedging reserve
Hedging reserve
Profit/loss after tax
EUR/JPY
-9
-5
14
↑↓ ↑
359
Consolidated Financial Statements Notes to the consolidated financial statements
5
-5
14
1,342
-14
-19
19
-41
41
Profit/loss after tax
Hedging reserve
EUR/BRL
5
9
5
-5
-137
Balance at Jan. 1, 2023
Foreign exchange differences
1,264
-23
15
61
0
1,340
-23
ABS-refinancing
6,282
1,329
-190
0
7,420
Additions
145
9
154
Cost
2023
Balance at
Dec. 31.
Other
changes
138
340
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:
Non-cash changes
€ million
Presentation of and changes in right-of-use assets from January 1 to December 31, 2023
Right of use on
land, land rights
and buildings incl.
buildings on third
party land
Right of use on
technical
equipment and
machinery
borrowings
Right of use on
other equipment,
operational and
office equipment
Balance at
Cash-
effective
Foreign
exchange
€ million
Jan. 1, 2023
changes differences
Changes in
consolidated
group
Classified as
held for sale
Total
-2
Foreign
exchange
differences
Balance at
0
Additions to cumulative depreciation
116
1
13
130
Classified as held for
-1
-1
Disposals
33
0
8
41
Balance at Dec. 31, 2022
310
4
0
30
0
0
-
-2
15
00
84
76
8
Balance at Dec. 31, 2022
Depreciation and impairment
Balance at Jan. 1, 2022
15
61
1,340
229
Foreign exchange differences
Changes in consolidated group
-1
30
25
257
-1
344
Carrying amount at Dec. 31, 2022
954
-11
Profit/loss after tax
-74
74
-125
130
Hedging reserve
EUR/KRW
0
0
0
0
-10
10
-8
8
Profit/loss after tax
11
-18
18
EUR/CAD
12
31
997
Consolidated Financial Statements Notes to the consolidated financial statements
341
↑↓ ↑
342
Income of €5 million (2022: €5 million) was generated in the fiscal year from subleasing right-of-use assets.
-2
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.
Assignment of lease liabilities to the respective statement of financial position items
€ million
Non-current financial liabilities
03
-3
Profit/loss after tax
-110
109
The tables below show how the lease liabilities are presented in the statement of financial position and give an
overview of their contractual maturities:
Changes in
consolidated
2265
Disposals
€ million
Lease liabilities'
1,063
-115
5
0
93
1,046
Total third-party borrowings
9,727
-781
267
167
100
9,480
Other financial assets and
liabilities
2,152
4
7
167
group
Classified as
held for sale
Other
changes
Dec. 31,
2022
ABS-refinancing
6,418
-426
290
-1
0
6,282
Other total third-party
borrowings
2,246
-240
-28
0
-5
0
-1
11
63
Foreign exchange differences
4
0
Changes in consolidated group
0
-
Additions
127
5
3005
1,285
4
1
137
Classified as held for sale
1,211
Balance at Jan. 1, 2022
Cost
Total
Financial assets and
liabilities in financing
activities
9,731
-786
268
167
100
1,264
9,480
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
Right of use on
other equipment,
operational and
office equipment
Other changes to lease liabilities largely include non-cash additions to lease liabilities.
Total hedging currency risk
2023
-4
Stage 2
Stage 1
-11,887
-
8
125
4
0
22,304
1,246
18
99
25
36
-36
278
-278
Stage 3
-11
Simplified
approach
Carrying amount at Jan. 1, 2022
Foreign exchange differences
-155
Stage 2
-5
-61
66
Stage 1
Transfers to
4,023
74
-12
-11,887
3,961
Changes
-46
-54
Changes in consolidated group
Disposal due to spin-off
117
20,942
Total
155
-183
11,620
198
12,949
Carrying amount at Jan. 1, 2023
Foreign exchange differences
Changes in consolidated group
Total
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.
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.
36.2.1 LOSS ALLOWANCE
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.
15
284
1,330
-9
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
-12
0
-247
Stage 3
-14
14
2,313
221
120
2,396
253
-1
-37
1,841
2,313
Carrying amount at Dec. 31
Changes in consolidated group
Changes
Carrying amount at Jan. 1
Foreign exchange differences
54
10
10
☐ ☐
0
Other changes within a stage
0
44
Transfers to
9
-27
€ million
-31
-9
-1
28
Utilization
-21
during the period (disposals)
Financial instruments derecognized
-28
Stage 3
-3
56
-6
Stage 2
-5
Stage 1
Newly extended/purchased financial assets
(additions)
Disposal due to spin-off
0
Stage 2
Stage 1
€ million
Change in the loss allowance for financial assets measured at amortized cost
348
↑↓ ↑ ||
347
Consolidated Financial Statements Notes to the consolidated financial statements
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
-27
14,492
1,330
15
198
12,949
Carrying amount at Dec. 31, 2022
-26
Classified as held for sale
Stage 3
Simplified
approach
Total
Change in the gross carrying amounts of lease receivables
-2
00
0
0
0
-1
111
36
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.
14
50
Changes in consolidated group
Foreign exchange differences
Carrying amount at Jan. 1, 2023
2022
2023
Simplified approach
€ million
11
346
↑↓ ↑ ||
345
Variable lease payments
2022
13,405
Future cash outflows to which the lessee is potentially exposed
€ million
The table below gives an overview of potential future cash outflows not taken into consideration in the
measurement of lease liabilities:
In the fiscal year, cash outflows of €304 million (2022: €278 million) were attributable to leases entered into as
lessee.
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
Extension options
1,954
Termination options
Total
Total
From 2028
2027
2026
2025
2024
2023
Lease payments
269
305
1
23
1
2
264
277
3
Obligations under leases not yet commenced
52
53
244
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
194
€ million
113
1,047
940
934
Dec. 31, 2022
Dec. 31, 2023
Total lease liabilities
€ million
Lease liabilities at Dec. 31, 2023
Lease liabilities at Dec. 31, 2022
Remaining contractual maturities
928
471
205
Total
From 2029
2028
2027
2026
192
2025
Lease payments
€ million
Figures as of December 31, 2023
Total
over five years
to five years
under one year
within one
2024
-1
577
206
2026
2025
2024
2023
€ million
Figures as of December 31, 2022
2,328
5
31
231
535
663
865
Total
From 2029
2028
2027
2027
2026
From 2028
43
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
219
517
636
782
Lease payments
Total
2025
2024
Lease payments
344
↑↓ ↑ 0 ||
343
Consolidated Financial Statements Notes to the consolidated financial statements
1,190
1,190
1,225
0
1,225
2022
2023
Total
Income from variable lease payments
Lease income
€ million
Breakdown of income from operating leases
1,771
58
49
35.2.2 FINANCE LEASES
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:
€ million
Non-guaranteed residual value
€ 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
689
-231
2,328
279
Dec. 31, 2022
Dec. 31, 2023
Net investment
Loss allowance on lease receivables
Unearned interest income
Non-discounted lease payments
271
2,204
-28
Change in the loss allowance for lease receivables
Simplified approach
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Hedging interest rate risk
€ million
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
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.
36.4.1 HEDGING POLICY AND FINANCIAL DERIVATIVES
36.4 MARKET RISK
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.
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.
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.
352
↑↓ ↑ 0 ||
351
Consolidated Financial Statements Notes to the consolidated financial statements
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
Recognized in equity
The cash outflows for other financial liabilities include liabilities for tax allocations amounting to €4 million (2022:
€15 million).
Recognized in profit or loss
Due to early discontinuation of the hedging relationships
-61
Due to early discontinuation of the hedging relationships
Reclassification from the cash flow hedge reserve to profit or loss
Recognized in profit or loss
-818
882
Recognized in equity
4
0
-5
113
-112
2022
2023
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Hedging currency risk
Due to realization of the hedged item
Reclassification from the cash flow hedge reserve to profit or loss
3,883
14
284
3,779
11,639
3,490
3,490
Trade payables
3,867
1,075
6,238
4,325
Financial liabilities
2022
more than
five years
within one
to five years
up to one
year
2023
more than
five years
within one
to five years
up to one
year
5,478
1,205
10,462
2,899
11,620
52,478
1,205
34,292
4,825
4,585
928
240
29,122 15,818 18,474
45,178 27,081 24,193
1,075
-44
11,980 17,143
20,658 23,445
14
Derivatives
10
64
863
liabilities
Other financial
2,899
7
Remaining contractual maturities
248
Due to realization of the hedged item
21
26
5,857
Interest rate swaps
11
6
-5
Total hedging interest rate risk
Hedging interest rate risk
Deferred taxes
Non-designated components
15
6
Designated components
Hedging interest rate risk
ineffectiveness
Fair value changes
to determine hedge
6
Other liabilities
Hedging currency risk
Designated components
-162
Deferred taxes
117
-5
-765
Non-designated components
1,215
484
53
205
11,445
Currency options
969
32,043
Currency forwards and cross-currency swaps
18
1,301
1,342
Hedging currency risk
Other assets
Notional amount
€ million
1
5
Due to realization of the hedged item
Due to early discontinuation of the hedging relationships
Reclassification from the cash flow hedge reserve to profit or loss
Recognized in profit or loss
Recognized in equity
Gains or losses from changes in fair value of hedging instruments within hedge
accounting
Hedging commodities price risk
Due to realization of the hedged item
Due to early discontinuation of the hedging relationships
Reclassification from the cash flow hedge reserve to profit or loss
Recognized in profit or loss
0
Recognized in equity
Gains or losses from changes in fair value of hedging instruments within
hedge accounting
Combined interest rate and currency risk hedging
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
cash flow hedges
Active cash flow hedges
ineffectiveness
Discontinued
determine hedge
Changes in fair value to
Reserve for
€ million
890
Disclosures on hedged items used in cash flow hedges 2023
Disclosures on hedged items used in hedge accounting
Disclosures on hedging instruments used in cash flow hedges 2023
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:
Disclosures on hedging instruments used in hedge accounting
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.
354
↑↓ ↑ |||
353
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:
Combined interest rate and
Remaining contractual maturities
(cancelled receivables-non-performing loans)
30
-6
Utilization
-3
-30
during the period (disposals)
Financial instruments derecognized
13
-13
Stage 3
8
-8
Stage 2
-3
-7
9
Stage 1
-5
Transfers to
51
-7
113
Carrying amount at Dec. 31
Financial instruments derecognized during the period (disposals)
Utilization
Newly extended/purchased financial assets (additions)
Changes in consolidated group
Foreign exchange differences
111
36
14
11
50
Carrying amount at Dec. 31, 2022
0
0
Classified as held for sale
-
Changes to models or risk parameters
-38
0
83
8
Carrying amount at Jan. 1, 2022
Total
Simplified
approach
Stage 3
Stage 2
Stage 1
€ million
Carrying amount at Jan. 1
104
35
11
11
47
Carrying amount at Dec. 31, 2023
Classified as held for sale
2022
2023
44
10
13
Foreign exchange differences
-17
-10
1
2
0
100
33
10
30
114
Other changes within a stage
(additions)
Newly extended/purchased financial assets
-10
Disposal due to spin-off
-18
Changes in consolidated group
1
1
75
Total
0
0
The table below shows the gross carrying amounts of financial assets by rating grade:
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.
36.2.4 RATING GRADES
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).
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
1
16,645
15,640
The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
3,644
15
198
12,949
Total
66
2,200
2,276
5
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.
15
36.3 LIQUIDITY RISK
In certain countries (e.g., China), the Porsche AG Group can only use local cash funds for cross-border transactions
Credit risk rating grade 3
284
(receivables with credit risk-intensified loan management)
Credit risk rating grade 2
11,620
(receivables with no credit risk-standard loans)
Credit risk rating grade 1.
€ million
€ million
Simplified
approach
Stage 3
Stage 2
Stage 1
Gross carrying amounts of financial assets by rating grade as of December 31, 2023
Maturity analysis of undiscounted cash outflows from financial instruments
The following overview shows the contractual undiscounted cash outflows from financial instruments:
in compliance with applicable exchange controls. There are no other material restrictions.
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).
(cancelled receivables-non-performing loans)
14,379
13,302
63
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:
36.2.3 MAXIMUM CREDIT RISK
350
↑↓ ↑
349
Consolidated Financial Statements Notes to the consolidated financial statements
There were no contractual modifications of financial assets during the reporting period that led to the
derecognition of the asset.
36.2.2 MODIFICATIONS
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).
113
121
-18
-8
-6
-8
25
23
Maximum credit risk by category
€ million
Financial assets measured at fair value
Financial assets measured at amortized cost
Financial guarantees and credit commitments
Credit risk rating grade 3
10
198
(receivables with credit risk-intensified loan management)
Credit risk rating grade 2
Dec. 31, 2022
Dec. 31, 2023
3,629
0
12,949
Credit risk rating grade 1
Simplified
approach
Stage 3
Stage 2
Stage 1
€ million
Gross carrying amounts of financial assets by rating grade as of December 31, 2022
Not allocated to a measurement category
Total
(receivables with no credit risk-standard loans)'
1,487
Non-current liabilities
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Trade payables
3,768
3,768
Financial liabilities
Current liabilities
Current liabilities
6,016
872
621
940
4,920
240
5,076
240
10
Other financial liabilities
3,490
364
64
Non-current liabilities
Financial liabilities
6,537
934
5,545
5,602
64
15
Other financial liabilities³
Financial liabilities
26
26
3,719
1,795
284
3,490
Other financial liabilities
88
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
Financial liabilities
1,231
3,490
3,880
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
262
3,719
3,464
262
3,719
26
6
Trade receivables
1,449
0
1,449
1,449
944
1,379
207
Other financial assets²
Financial services receivables
Trade receivables
Current assets
Current assets
753
466
944
4,382
2,820
178
2,889
187
100
Other financial assets²
1,422
791
Financial services receivables
4,676
1,531
3,282
545
3,146
549
82
Other financial assets'
1,494
725
1,669
Financial services receivables
Cash and cash equivalents
5,820
1,533
time deposits
1,826
16
5,820
16
5,820
6
Assets held for sale
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
2,010
424
1,379
1,538
687
851
1,268
0
1,268
1,268
851
Assets held for sale
2,899
5,287
2 Other assets that are not financial assets are not included (other receivables and income tax receivables: €1,314 million).
4,226
Financial services receivables
Level 3
Level 2
Level 1
Dec. 31, 2023
€ million
Level 3
Level 2
Derivative financial instruments included in hedge accounting by level:
Level 1
Dec. 31, 2023
€ million
4,226
Fair values of financial assets and liabilities measured at amortized cost by level
↑↓ ↑ 0 |||
367
Consolidated Financial Statements Notes to the consolidated financial statements
88
88
Other financial liabilities
Current liabilities
15
15
Other financial liabilities
Non-current liabilities
1,810
1,810
368
Non-current assets
Trade receivables
Other financial assets
13,440
Current liabilities
Fair value of financial assets measured at
amortized cost
284
284
Other financial liabilities
6
6
Assets held for sale
Non-current liabilities
5,820
5,820
Cash and cash equivalents
424
424
Other financial assets
16
16
Marketable securities and time deposits
Current assets
2
788
1,134
1,924
791
791
Other financial assets
1,449
1,449
Marketable securities and time deposits
207
207
Other financial assets
Level 3
Level 2
Level 1
Dec. 31, 2022
Non-current liabilities
Other financial assets
Current assets
Other financial assets
Other equity investments
Non-current assets
€ 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
Consolidated Financial Statements Notes to the consolidated financial statements
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).
Other liabilities that are not financial liabilities are not included (other provisions, deferred tax liabilities and other liabilities: €3,472 million).
4
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
193
Financial services receivables
0
100
Current assets
Other financial assets
82
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
71
141
100
193
6,954
636
193
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
2,454
2,369
Commodity forwards/swaps
other
1,570
other currencies
Currency options in
5,039
2,437
1,174
1,264
Currency options in USD
15,694
6,639
1,906
4,733
Currency options in CNY
Currency options
799
44
8
52
Dec. 31, 2022
Dec. 31, 2023
%
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:
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.
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 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
8,817
EUR
10,058
4,111
Dec. 31, 2022
Dec. 31, 2023
more than five
years
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.
Notional amount of hedging
36.5 Methods for monitoring hedge effectiveness
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.
Currency risk
As of December 31, 2023, the VaR for interest rate risk amounted to €34 million (2022: €51 million).
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.
As of December 31, 2023, the VaR for currency risk amounted to €0 million (2022: €1 million).
instruments within
hedge accounting
Hedging interest rate risk
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
Cross-currency swaps in CNY
Currency forwards/
Cross-currency swaps
Currency forwards/
Hedging currency risk
6,633
5,857
3,229
2,628
Interest rate swap
5,947
USD
GBP
CNY
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
Carrying
Reconciliation of items in the statement of financial position to classes of financial instruments as
of December 31, 2022'
364
↑↓ ↑ 0 |||
363
Consolidated Financial Statements Notes to the consolidated financial statements
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.
36.6.3 RECONCILIATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION TO CLASSES OF FINANCIAL
INSTRUMENTS
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
Reconciliation of items in the statement of financial position to classes of financial instruments as
of December 31, 2023
amount
Fair value
Carrying
amount
Other equity investments
814
621
193
Other equity investments
623
623
investments
651
651
investments
Equity-accounted
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
at fair value
Measured
Derivative
Non-current assets
€ million
Carrying
amount
3.48 3.30
2.27
10 years
Interest rate for
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
6
of which classified as held for sale
13,302
Financial assets measured at amortized cost
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:
36.6 Other disclosures on financial instruments
JPY
CNY
GBP
USD
EUR
JPY
1
443
of which classified as held for sale
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.
4.08 3.06 0.60
3.73
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
Interest rate for
1 year
0.01
2.41
4.79 4.08
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 prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
Equity and bond price risks
2,258
Other financial liabilities
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.
2022
36.6.6 ASSET-BACKED SECURITIES TRANSACTIONS
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
Other financial
liabilities
2,899
2,899
Trade payables
9,480
9,480
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.
Financial instruments measured at fair value through profit or loss
161
56
4,857
19,646
Average equity
Profit before tax
Financial services segment
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
The return on investment in the automotive segment and the return on equity in the financial services segment are
presented in the tables below:
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.
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
Financial assets measured at amortized cost
Financial liabilities
4,498
18,010
-414
1,285
Marketable
1,268
1,268
Trade receivables
5,920
5,920
receivables
Financial services
-414
791
791
instruments
Derivative financial
securities and
Net amount at
Dec. 31, 2022
Financial
instruments
statement of
financial position
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
Collateral
received
time deposits
1,795
Cash and cash
instruments
Derivative financial
Net amount at
Dec. 31, 2022
Collateral
pledged
Financial
instruments
928
3,490
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
5,920
378
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
5,641
3,719
1,795
5,641
assets'
Other financial
3,719
equivalents
1,285
24.7
25.0
309
803
2,471
Total
839
110
456
273
Miscellaneous other financial obligations
100
7
59
34
Irrevocable credit commitments to customers
Leasing and rental contracts.
116
Obligations from
163
1,803
125
361
Intangible assets
Property, plant and equipment
Purchase commitments in respect of
Dec. 31, 2022
Total
More than five
years
Within one to
five years
Within one year
5,392
486
1,966
3,390
40. LITIGATION
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.
↑↓ ↑ ||
379
Consolidated Financial Statements Notes to the consolidated financial statements
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.
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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.
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.
The notice alleges that certain 3.0 liter V6 Volkswagen Group diesel engines are in contravention of the applicable
emissions certification standards.
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.
Diesel issue
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.
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.
378
↑↓ ↑
377
Consolidated Financial Statements Notes to the consolidated financial statements
Legal risks may also arise due to the criminal actions of individuals, which even the best compliance management
system can never fully rule out.
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 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.
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.
147
1,344
3,901
Total
In the case of liabilities from guarantees, the Group is required to make specific payments if the debtors fail to
meet their obligations.
128
64
123
39
0
0
5
25
€ million
Dec. 31, 2022
Dec. 31, 2023
Other contingent liabilities
Warranties
Guarantees
€ million
38. CONTINGENTLIABILITIES
Maturity
376
↑↓ ↑ 0 |||
375
Consolidated Financial Statements Notes to the consolidated financial statements
Pre-tax return on equity in %
1 The prior-year figures have been adjusted (see explanations on IFRS 17 → Effects of new or amended IFRS).
20.5
19.6
1,691
1,576
346
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.
1,449
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.
€ million
2,627
118
975
1,534
Miscellaneous other financial obligations
211
25
88
97
Irrevocable credit commitments to customers
Leasing and rental contracts
Obligations from
751
1
85
665
Intangible assets
1,803
3
196
1,605
Property, plant and equipment
Purchase commitments in respect of
Dec. 31, 2023
Total
More than five
years
five years
Within one year
Within one to
Maturity
39. OTHER FINANCIAL OBLIGATIONS
4,227
6,345
Amounts that are not set off in the
statement of financial position
4,510
54
4,873
Other financial liabilities
8,225
0
8,279
Financial liabilities
2,899
2,899
Trade payables
3,673
5,577
5,079
14,328
amortized cost
Fair value of financial assets measured at
26
26
Assets held for sale
3,719
3,719
Cash and cash equivalents
262
262
54
309
Marketable securities and time deposits
Liabilities associated with assets held for sale
1
recognized in other comprehensive income
-9
recognized in profit or loss
-11
Total comprehensive income
49
263
measured at fair value
Financial assets
Transfers from level 3 into level 2
Transfers from level 3 into level 1
948
Balance at Jan. 1, 2023
€ million
Changes in items in the statement of financial position measured at fair value based on level 3
The table below summarizes the changes in items in the statement of financial position measured at fair value and
allocated to level 3:
370
↑↓ ↑ 0 ||
369
Consolidated Financial Statements Notes to the consolidated financial statements
363
15,635
54
16,052
Fair value of financial liabilities measured at
amortized cost
1
2
4,020
1,360
154
13,731
Fair value of financial liabilities measured at
amortized cost
1
1
Liabilities associated with assets held for sale
Level 3
Level 2
Level 1
Dec. 31, 2022
€ million
1
138
700
89
928
Other financial liabilities
9,247
65
9,313
Financial liabilities
3,490
3,490
Trade payables
280
280
13,438
€ million
Dec. 31, 2022
Level 1
5,382
Other financial assets'
1,268
1,268
3,671
3,671
Trade receivables'
Financial services receivables
466
466
584
584
-3
Other financial liabilities
621
Other financial liabilities
Current liabilities
Non-current liabilities
140
140
Other financial assets
Current assets
139
Other financial assets
Non-current assets
Level 3
Level 2
621
Settlements
Additions (purchases)
-6
Net amount at
Dec. 31, 2023
Gross amounts of
recognized
Gross amounts of
recognized
€ million
financial assets
Collateral
pledged
financial liabilities
set off in the
statement of
financial position
Derivative financial
instruments
667
Financial liabilities
10,417
667
10,417
-497
Net amounts of
financial assets
presented in the
statement of
financial position
Financial
instruments
Financial
instruments
Amounts that are not set off in the
statement of financial position
263
36
36
12
Consolidated Financial Statements Notes to the consolidated financial statements
371
Net amounts of
financial liabilities
presented in the
statement of
financial position
↑↓ ↑ ||
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
372
-127
Collateral
received
Dec. 31, 2023
Marketable
securities and
time deposits
1,826
1,826
Cash and cash
1,449
equivalents
5,820
Other financial
assets
2,180
2,180
€ million
5,820
Net amount at
1,449
6,345
Trade payables
3,490
3,490
Other financial
liabilities
928
928
Trade receivables
Derivative financial
1,445
1,445
-497
Financial services
receivables
6,345
instruments
-76
-18
22
Changes in participation structure
Disposals (sales)
Settlements
recognized in other comprehensive income
recognized in profit loss
Total comprehensive income
Transfers from level 3 into level 2
Transfers from level 3 into level 1
Additions (purchases)
Balance at Jan. 1, 2022
€ million
held at the reporting date
of which attributable to assets/liabilities
Financial result
of which attributable to assets/liabilities
held at the reporting date
Net other operating expense/income
Total gains or losses recognized in profit or loss
Balance at Dec. 31, 2023
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.
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.
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.
Disposals (sales)
193
-26
Changes in participation structure
Balance at Dec. 31, 2022
-9
360
-9
36
58
156
203
measured at fair value
Financial assets
-9
-9
of which attributable to assets/liabilities
held at the reporting date
Financial result
held at the reporting date
of which attributable to assets/liabilities
Net other operating expense/income
Total gains or losses recognized in profit or loss
Milestones Streamlining
<-120 Y
33
SAGOTON
37
38
38
km/h
regulierung
120
120
900 m 49
Miriam Mohamad, Project Manager for Infotainment and
Connect, Macan Model Line, Hemmingen
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.
120 100
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.
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
Milestones Streamlining
39
the cockpit, from tried-and-
tested digital ecosystems,
while maintaining its Porsche
identity.
We've added new content to
view with precise localization
projects important information in the field of
The new augmented reality head-up display
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.
B10 Stuttgart
can open the door.
The present-day current of time
24
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 Craftsmanship
Albrecht Reimold integrates
Manufaktur expertise into
industrial production
25
AFBAG
26
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
The Heritage Design package
for the 911 S/T includes full bucket
seats in Black/Classic Cognac
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.
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
"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 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.
High-tech solutions and
craftsmanship set Porsche
production apart.
Albrecht Reimold, Member of the Executive Board
responsible for Production and Logistics
27
27
Vision
Porsche AG has been systematically developing a start-up
ecosystem since 2016. Its venture capital unit, Porsche
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.
29
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.
"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."
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."
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.
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.
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 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.
Special Editions Born from Dreams
20
Detlev von Platen
fulfills exclusive
customer dreams
ABOVE, LEFT A1987
Porsche 959 as a treasure worthy
of an Arabian Prince
LEFT The custom interior
expertly reflects the color of
the exterior
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.
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.
Milestones Craftsmanship
21
von Karajan
LEFT In 1974, Herbert von
Karajan's wish list extended to
this signature
RIGHT It took a great deal of
finesse to orchestrate the light-
weight version of the 911 Turbo
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
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
of 948 examples of the flatnose 911 Turbo had
been ordered.
Dreams can be
powerful. They
encourage us to
never give up.
Detlev von Platen, Member of the Executive Board
responsible for Sales and Marketing
22
turbo
PORSCHE
23
The imposing 1983 Porsche 935
"Street" for Mansour Ojjeh
PORSCHE
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.
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).
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.
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.
"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."
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.
Thomas Wiegand, Head of Aerodynamics and
Aeroacoustics-Development, Weissach
1
increase in range of
21 kilometers.
In practice, ten percent
less drag means an
35
35
S.GO 707E
popular series.
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
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.
Streamlining
34
33
META
SMART CITY & LIVING
INDUSTRIAL SOLUTIONS
BEYOND
Milestones Vision
NEGATIVE-EMISSION MATERIALS
ESG SUPPLY CHAIN
CIRCULAR ECONOMY
SUSTAINABILITY
NEW WORK
PRODUCTION 4.0
DIGITAL EXPERIENCE
INTELLIGENT ENTERPRISE
CAR-RELATED SERVICES
E-MOBILITY ECOSYSTEM
INTELLIGENT CAR
CAR & MOBILITY
Porsche Ventures has defined four strategic fields of investment
AREAS OF FOCUS
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.
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
20
team identified a drag coefficient of 0.25 for
this situation-the best that a Porsche SUV
has ever achieved.
36
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.
The Porsche Design Tower was planned with
foresight-including a photovoltaic system
on the roof of the Porsche Center Stuttgart
Through Porsche Ventures, we
are creating the basis for
convincing external investors of
our innovation agenda and our
investment strategy in the future.
Lutz Meschke, Deputy Chairman of the Executive Board and
Member of the Executive Board responsible for Finance and IT
30
"
Milestones Vision
31
Lutz Meschke can tell success
stories about Porsche's venture
capital activities
32
Through the investment
in 1KOMMA5°, we've
secured a partner that
can help us enormously
with the electric mobility
transformation.
Lutz Meschke
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.
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.
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.
Luke
PORSCHE
aerodynamic elements
The automatically raising rear
spoiler is just one of several active
C
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
Based on the reduced drag resulting from the change in consumption, determined on the basis of the WLTP.
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.
When Porsche conquered the world of venture
capital in 2016, Meschke's approach was
51,039
2,070
18,750
2022
16,220
53,873
2022
55,596
119,268
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
EUR
1.1077
USD
Porsche Consulting, Inc., Atlanta / GA
Porsche Design GmbH, Zell am See
EUR
Porsche Consulting S.r.I., Mailand
2022
7.8700
4,716
2022
Total of both
Name
% of voting rights (if at
least held 3% or more)
% of voting rights through
instruments
(if at least held
(if at least held 5% or more)
5% or more)
Porsche Piëch Holding GmbH
%
%
399
Consolidated Financial Statements Notes to the consolidated financial statements
2022
290
7,912
970
CNY
Porsche Consulting Ltd., Shanghai
7.8700
100.00 100.00
112
5
2022
Shanghai
CNY
Porsche Immobilien GmbH & Co. KG, Stuttgart
EUR
100.00
Porsche Leipzig GmbH, Leipzig
EUR
100.00
100.00
100.00
59,971
4,814
EUR
Bissingen
Porsche (Shanghai) Commercial Services Co., Ltd.,
Verwaltungsgesellschaft mbH, Bietigheim-
CNY
2022
98,374
129,100
100.00 100.00
7.8700
CNY
Full chain of controlled undertakings starting with the ultimate controlling natural person or legal entity:
2022
19,067
100.00 100.00
1.4681
CAD
3,258
3,027,981
2022
2022
4,571
2022
8. Information in relation to the party subject to the notification obligation
Total
Porsche Automobil Holding SE
25.01%
%
VOLKSWAGEN
%
%
%
AKTIENGESELLSCHAFT
Porsche Holding Stuttgart GmbH
74.99%
%
74.99%
9. In case of proxy voting according to section 34 (3) WpHG
Date of Annual General Meeting:
% of voting rights attached to shares
Beteiligung GmbH
%
%
%
%
%
Familien-Holding GmbH
Ferdinand Alexander
%
%
%
Porsche GmbH
Consolidated Financial Statements Notes to the consolidated financial statements
393
↑↓ ↑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
%
% of voting rights through instruments
%
Total of both
%
attached to shares
(total of 7.a.)
100.00%
100.00%
Total
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Expiration or
maturity date
Conditional transfer
claim
Voting rights
absolute
Voting rights
%
%
%
Exercise or
conversion period
Cash or
physical
settlement
Voting rights
absolute
% of voting rights
Previous notification
Resulting situation
6. Total positions
47.3 Publication pursuant to section 40 (1) WpHG from January 2, 2023
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
Voting rights
%
Name:
City and country of registered
office:
Salzburg, Austria
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
Porsche Piëch Holding GmbH
49,539
Porsche Asia Pacific Pte. Ltd., Singapur
7.8700
1.4612 100.00
100.00
100.00
100.00 100.00
19.40 100.00
100.00
37
68,193
2,556
1,501,311
394,594
-4
2022
-279
2022
1
2022
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
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
164,265
-14,206
114,882
101,866
154,265
-1,232
2022
80.60
100.00
2022
EUR
EUR
2022
Porsche Cars Canada Ltd., Toronto / ON
CAD
1.4681
Porsche Cars Great Britain Ltd., Reading
GBP
0.8691
EUR
100.00
Porsche Werkzeugbau GmbH, Schwarzenberg
EUR
100.00
Porsche Zentrum Hoppegarten GmbH, Stuttgart
EUR
UI-356-Fonds, Frankfurt am Main
UI-SP25-Fonds, Frankfurt am Main
10
8,248
2022
CNY
7.8700
100.00 100.00
65,288
81,607
2022
-69,850
-17,906
10
2022
4,10
2022
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
CNY
7.8700
100.00 100.00
2022
11,627
2022
549,641
16,852
2022
677
175,719
214,677
-28
2022
18,200
2022
2,198
22,025
165,210
26,307
2022
CZK
24.7180 100.00
100.00
2,441,457
153,473
2022
SGD
100.00
EUR
2022
10
2022
9
2022
Porsche Logistik GmbH, Stuttgart
EUR
100.00
100.00
1,000
2022
Porsche Niederlassung Berlin GmbH, Berlin
EUR
100.00 100.00
2,500
2022
2022
154,752
14,823
100.00 100.00
100.00
100.00 100.00
100.00 100.00
2,500
2022
Porsche Auto Funding LLC, Atlanta / GA
USD
1.1077
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg
EUR
100.00
100.00
-11,551
8,586
2022
Porsche Aviation Products, Inc., Atlanta / GA
USD
1.1077
625,831
79,807
4,000
671
Porsche Brasil Importadora de Veículos Ltda.,
São Paulo
BRL
5.3750 100.00
2022
Porsche Canadian Funding L.P., Mississauga / ON
Porsche Canadian Investment ULC, Halifax / NS
CAD
1.4681
CAD
2022
Porsche Nordamerika Holding GmbH, Ludwigsburg
Porsche Sales & Marketplace GmbH, Stuttgart
Porsche Verwaltungsgesellschaft mit beschränkter
Haftung, Ludwigsburg
EUR
100.00
100.00
58,311
2022
Porsche Cars Australia Pty. Ltd., Collingwood
AUD
1.6292 100.00
2,500
100.00 100.00
EUR
2022
Porsche Business Services, Inc., Atlanta / GA
USD
1.1077
Porsche Niederlassung Berlin-Potsdam GmbH,
Kleinmachnow
EUR
100.00 100.00
100.00
1,700
Porsche Canadian Funding II L.P., Mississauga / ON
CAD
1.4681
Porsche Niederlassung Hamburg GmbH, Hamburg
Porsche Niederlassung Stuttgart GmbH, Stuttgart
EUR
100.00 100.00
2,000
2022
1.4681
Porsche Financial Services GmbH,
7,964
3,153,434
49. REMUNERATION OF THE EXECUTIVE BOARD AND SUPERVISORY BOARD
The total remuneration granted to the members of the Executive Board amounts to €25 million (2022:
€24 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 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).
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.
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
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/.
Name
% of voting rights (if at
least held 3% or more)
% of voting rights through
instruments
(if at least held 5% or
more]
entity:
Total of both
(if at least held 5%
or more)
%
%
Mag. Josef Ahorner
48. GERMAN CORPORATE GOVERNANCE CODE
Expiration or
maturity date
transfer claim
455,500,000
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument Expiration or
maturity date
Indirect (section
34 WPHG)
100.00%
Voting rights
Exercise or
conversion period
Voting rights
absolute
%
0.00%
0.00%
Total
Exercise or
conversion period
Cash or physical
settlement
Voting rights
absolute
Voting rights
%
b.2. Instruments according to section 38 (1) no. 2 WPHG
Type of
instrument
Conditional
Ahorner Holding GmbH
%
%
%
Consolidated Financial Statements Notes to the consolidated financial statements
397
↑↓ ↑ ||
398
50. LIST OF SHAREHOLDINGS
Name and domicile of company
Porsche AG's interest
in capital in %
Exchange rate
Equity
(1 € =)
in thousands,
Profit/loss
in thousands,
Currency Dec. 31, 2023
Direct
Indirect
Total
local currency
local currency Footnote Year
Name and domicile of company
%
100.00%
%
Total of both
Ahorner GmbH
%
%
%
Porsche Automobil Holding SE
25.01%
%
25.01%
VOLKSWAGEN
%
%
%
AKTIENGESELLSCHAFT
Porsche Holding Stuttgart GmbH
74.99%
%
74.99%
9. In case of proxy voting according to section 34 (3) WPHG
Date of Annual General Meeting:
% of voting rights attached to shares
% of voting rights through instruments
%
Total
0.00%
455,500,000
%
Total number of
47.4 Publication pursuant to section 40 (1) WpHG from January 2, 2023
1. Details of issuer
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart
% of voting rights
Total of both
through instruments
% (7.a. +7.b.)
(total of 7.b.1. +7.b.2.)
voting rights of
issuer
0.00%
7.50%
100.00%
100.00%
455,500,000
7. Notified details of the resulting situation
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
(section 34
WpHG)
100.00%
2. Reason for notification
Other reason:
Total of both
Completion of the share purchase agreement
% of voting rights through instruments
%
% of voting rights attached to shares
%
%
Porsche Gesellschaft mit
beschränkter Haftung
%
%
%
Porsche Automobil Holding SE
25.01%
%
25.01%
VOLKSWAGEN
%
%
%
AKTIENGESELLSCHAFT
Porsche Holding Stuttgart GmbH
74.99%
%
74.99%
9. In case of proxy voting according to section 34 (3) WpHG
Date of Annual General Meeting:
%
2. International
3. Details of party subject to the notification obligation
Name:
4. Names of shareholder(s)
Total number of
voting rights
pursuant to
section 41
WPHG
Resulting situation
100.00%
%
Previous
100.00%
7.50%
100.00%
100.00%
455,500,000
notification
7. Notified details of the resulting situation
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
absolute
%
DE000PAG9113
Direct (section 33
WpHG)
0
Indirect (section 34
WpHG)
Direct (section 33
WpHG)
Total of both (total
notified details of the
resulting situation a. +
b.)
Mag. Josef Ahorner
% of voting rights
through instruments
(total notified details
of the resulting
situation b.1.+b.2.)
% of voting rights
Porsche Holding Stuttgart GmbH
Porsche Automobil Holding SE
5. Date on which threshold was crossed or reached:
December 30, 2022
absolute
%
Direct (section 33
WpHG]
Indirect (section 34
WpHG)
Direct (section 33
WpHG)
Indirect
DEO0OPAG9113
0
455,500,000
Total
455,500,000
0%
100.00%
City and country of registered office:
||| ơ V12
Consolidated Financial Statements Notes to the consolidated financial statements
395
396
6. Total positions
attached to shares
(total notified details
of the resulting
situation a.)
Porsche AG's interest
in capital in %
Equity
33,395
7,373
10
2022
Porsche Engineering Services GmbH, Bietigheim-
Bissingen
PGEAR LLC, Atlanta / GA
USD
1.1077
100.00 100.00
29,479
7,841
10
2022
EUR
100.00
100.00
1,601
2022
PILOT 2017-A LLC, Atlanta / GA
USD
1.1077
100.00 100.00
100.00 100.00
1.1077
PFORCE LLC, Atlanta / GA
2022
Porsche Digital GmbH, Ludwigsburg
EUR
100.00
100.00
20,025
2022
PDRIVE LLC, Atlanta / GA
USD
1.1077
100.00 100.00
32,985
9,596
10
2022
Porsche Engineering Group GmbH, Weissach
EUR
100.00
100.00
4,000
2022
USD
506
98,593
10
100.00
100.00
26,608
2022
Porsamadrid S.L., Madrid
EUR
Porsche Financial Services
Porsche (China) Motors Ltd., Shanghai
CNY
7.8700
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
9,994
-324
10
2022
61,015
22,036
10
2022
4,6,10
2023
EUR
25,265
Bietigheim-Bissingen
1.1077
2022
Porsche Erste Beteiligungsgesellschaft mbH,
Stuttgart
EUR
100.00
100.00
104,425
2022
PILOT 2017-B LLC, Atlanta / GA
USD
1.1077
Porsche Financial Services GmbH & Co. KG,
Bietigheim-Bissingen
PILOT 2019-A LLC, Atlanta / GA
USD
1.1077
EUR
100.00 100.00
169,972
19,955
2022
PJOLT-1 LLC, Atlanta / GA
USD
%
%
100.00 100.00
USD
ExB LLC, Atlanta / GA
USD
1.1077
1.1077
Nardò Technical Center S.r.l., Santa Chiara di Nardò
EUR
000 Porsche Center Moscow, Moskau
RUB
000 Porsche Financial Services Russland, Moskau
RUB
MHP Management- und IT-Beratung GmbH,
Ludwigsburg
000 Porsche Russland, Moskau
RUB
EUR
86.35
86.35
Porsche Consulting GmbH, Bietigheim-Bissingen
EUR
100.00
100.00
Porsche Deutschland GmbH, Bietigheim-Bissingen
EUR
USD
100.00
ExB II LLC, Atlanta / GA
10
Profit/loss
in thousands,
local currency Footnote
Exchange rate
(1 € =)
Currency Dec. 31, 2023
Direct
Indirect
Total
in thousands,
local currency
Year
Carrera Finance S.A., Luxemburg
EUR
10
31
2022
I. PARENT COMPANY
Dr. Ing. h.c. F. Porsche AG, Stuttgart
II. SUBSIDIARIES
A. Consolidated companies
1. Germany
Carrera Italia SPV S.r.I., Conegliano
EUR
10 2022
1.1077
100.00
69,201
100.00 100.00
1,805,297
280,862
7,192,065
51,835
990
3
122,033
2022
50,518
2022
-248,404
22,746
2022
10
2022
10
2022
5
2022
Porsche Dienstleistungs GmbH, Stuttgart
EUR
100.00
100.00
43
2022
PCTX LLC, Atlanta / GA
1.4681
235,124
700
18,120
CAD
2022
2022
PCars LLC, Atlanta / GA
USD
99.9661
99.9661
99.9661
1.1077
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
56,017
37,644
18,570
17,210
10
2022
10
2022
13,635
1,386
2022
99.00 1.00 100.00
100.00 100.00
2022
PCREST II Holdings Ltd., Vancouver / BC
CAD
1.4681
100.00 100.00
PCREST Ltd., Mississauga / ON
Ferdinand Porsche
%
%
Supplies and services received
2023
2022
0
0
0
0
2
0
0
0
Volkswagen AG - Group
4,889
5,030
6,685
6,233
Porsche Holding Stuttgart GmbH
6
Associates and their majority interests
38
53
2
2
2022
Joint ventures and their majority interests
256
72
175
Non-consolidated entities
207
3
203
2023
State of Lower Saxony, its majority interests and
joint ventures
Porsche SE
- 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.
- 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.
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:
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 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).
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.
- 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.
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.
386
↑↓ ↑ |||
385
Consolidated Financial Statements Notes to the consolidated financial statements
85,440
85,440
56,960
44. RELATED PARTY DISCLOSURES IN ACCORDANCE WITH IAS 24
6
- 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.
- Volkswagen AG bears the tax risk of additional taxes, to the extent to which these are not already covered by
corresponding risk provisioning.
Porsche und Piëch families
€ million
Supplies and services rendered
Related parties
388
↑↓ ↑ 0 |||
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:
387
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.
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).
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.
- 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.
- 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.
- Volkswagen AG assumes all pre-IPO costs, which also include potential taxes from pre-IPO structuring.
Consolidated Financial Statements Notes to the consolidated financial statements
Shares
Shares
203
%
8,017
2,015
2,748
Porsche Holding Stuttgart GmbH
40
67
4,079
Non-consolidated entities
708
189
147
95
Joint ventures and their majority interests
60
56
6
1
1
Total
Other related parties
0
0
Members of the Executive Board and the
Supervisory Board Porsche AG
6,399
0
Pension plans
97
115
42
137
Associates and their majority interests
0
Volkswagen AG - Group
33
0
State of Lower Saxony, its majority interests and
joint ventures
Porsche SE
Porsche und Piëch families
€ million
Total
Other related parties
5,079
0
1
Members of the Executive Board and the
Supervisory Board Porsche AG
1
0
0
1
1
128
5,320
6,604
0
0
0
0
0
0
7,197
0
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Liabilities
Receivables
0
The prior-year figures have been adjusted.
7
7
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
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.
KBA HEARING ON NOISE FUNCTIONS
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.
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.
Neither provisions nor contingent liabilities were recognized because the early stage of the proceedings makes a
realistic assessment of the risk exposure impossible.
Further disclosure in respect of estimates
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.
41. PERSONNEL EXPENSES
€ million
2023
2022
Wages and salaries
4,356
4,132
Social security contributions, pension and other benefit costs
thereof pension costs
794
Trainees
Indirect area
Direct area¹
Average number of employees
42. AVERAGE NUMBER OF EMPLOYEES DURING THE YEAR
384
ANTITRUST INVESTIGATIONS (RECYCLING OF END-OF-LIFE VEHICLES)
↑↓ ↑ ||
Consolidated Financial Statements Notes to the consolidated financial statements
4,961
5,149
324
226
829
383
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.
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.
CONFORMITY OF PRODUCTION MEASUREMENTS
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
380
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.
Employees in the release phase of partial retirement
USA AND CANADA ANTITRUST CLASS ACTION
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.
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.
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.
382
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")
↑↓ ↑ 0 |||
€ million
1 The direct area includes all employees directly involved in the vehicle manufacturing process.
10,004
4
€ million
29
9
Granted performance shares based on the Volkswagen preferred
share
Shares
120,266
Shares
168,974
59,369
Granted performance shares based on the Porsche preferred share
Shares
Shares
214,167
214,167
of which granted during the reporting period
of which granted during the reporting period
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
5
€ million
7
5
€ million
7
12
€ million
Dec. 31, 2023
of which granted during the reporting period
Granted performance shares
Fair value at grant date
Total expense of the reporting period
Carrying amount of the obligation
Intrinsic value of the obligation
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.
Dec. 31, 2022
€ million
10
17
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.
2022
469
38,108
41,043
For all beneficiaries, the payment amount under the performance share plans is limited to 200% of the target
amount.
37,639
675
678
36,964
39,837
9,444
27,520
29,833
40,515
528
2023
Executive Board and top management
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.
€ million
8
12
€ million
Dec. 31, 2022
Dec. 31, 2023
43. REMUNERATION BASED ON PERFORMANCE SHARES
(SHARE-BASED PAYMENT)
Fair value on granting date
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.
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.
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
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.
Total expense of the reporting period
Carrying amount of the obligation
Intrinsic value of the obligation
7,305
Pension plans
2,351
Total of both
Conditional transfer
claim
%
%
%
47.2 Publication pursuant to section 40 (1) WpHG from January 2, 2023
Voting rights
absolute
Voting rights
%
%
%
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:
City and country of registered
office:
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
Name:
3. Details of party subject to the notification obligation
Completion of the share purchase agreement
Other reason:
% of voting rights through instruments
2. Reason for notification
1. Details of issuer
Total of both
(if at least held
5% or more)
(if at least held 5% or more)
% of voting rights through
instruments
% of voting rights (if at
least held 3% or more)
Name
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart, Germany
% of voting rights attached to shares
Expiration or
maturity date
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
Exercise or
conversion period
absolute
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
7. Notified details of the resulting situation
74.99%
%
74.99%
%
Porsche Holding Stuttgart GmbH
%
%
%
VOLKSWAGEN
25.01%
%
AKTIENGESELLSCHAFT
8,377
Direct (section 33
WpHG)
Direct (section 33
WpHG)
9. In case of proxy voting according to section 34 (3) WPHG
Date of Annual General Meeting:
Total
Exercise or
conversion period
Expiration or
maturity date
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
WPHG)
100.00%
Indirect (section 34
WpHG)
0%
100.00%
Total
455,500,000
0
DE000PAG9113
(section 34
Indirect
455,500,000
25.01%
Porsche Holding Stuttgart GmbH
5. Date on which threshold was crossed or reached:
74.99%
%
74.99%
6. Total positions
%
%
%
Resulting situation
% of voting rights
attached to shares
(total of 7.a.)
% of voting rights
Total of both
Total number of
through instruments
(total of 7.b.1. + 7.b.2.)
% (7.a. + 7.b.)
voting rights of
issuer
%
%
%
%
Stephanie Porsche-Schröder,
Ferdinand Rudolf Wolfgang
Porsche, Felix Alexander Porsche
Familie WP Holding GmbH
455,500,000
Porsche Holding Stuttgart GmbH
100.00%
7.50%
100.00%
Previous notification
0.00%
100.00%
Dr. Wolfgang Porsche, Dr. Dr.
Christian Porsche, Dipl.-Design.
100.00%
AKTIENGESELLSCHAFT
%
%
%
%
Ferdinand Porsche
Familien-Privatstiftung
%
%
%
%
Alexander Porsche, Dr. Geraldine
Porsche, Ing. Hans-Peter Porsche,
Peter Daniell Porsche, Diana
Porsche
%
%
%
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
December 30, 2022
Ferdinand Porsche
Porsche Automobil Holding SE
Familien-Holding GmbH
%
%
VOLKSWAGEN
25.01%
%
25.01%
Porsche Automobil Holding SE
Ferdinand Alexander
Beteiligung GmbH
%
%
Familie Porsche
Porsche GmbH
%
%
%
Porsche Automobil Holding SE
4. Names of shareholder(s) holding directly 3% or more voting rights, if different from 3.
%
City and country of registered office:
Dr. Hans Michel Piëch
3. Details of party subject to the notification obligation
Name:
Completion of the share purchase agreement
Other reason:
2. Reason for notification
4. Names of shareholder(s) holding directly 3% or more voting rights, if different from 3.
Porsche Holding Stuttgart GmbH
Dr. Ing. h.c. F. Porsche Aktiengesellschaft, Porscheplatz 1, 70435 Stuttgart, Germany
47.1 Publication pursuant to section 40 (1) WpHG from January 2, 2023
47. NOTIFICATIONS OF CHANGES IN THE VOTING RIGHTS IN PORSCHE AG PURSUANT TO
THE GERMAN SECURITIES TRADING ACT (WPHG)
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.
45. TOTAL FEES OF THE GROUP AUDITOR
Write-downs of €0 million (2022: €7 million) were recognized in respect of the outstanding receivables from
related parties.
In the fiscal year, the Porsche AG Group made capital contributions at related parties of €217 million (2022:
€372 million).
1. Details of issuer
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.
Porsche Automobil Holding SE
6. Total positions
Financial statement audit services
€ million
455,500,000
Issuer
Total number of
voting rights of
100.00%
100.00%
5. Date on which threshold was crossed or reached:
December 30, 2022
a. Voting rights attached to shares (section 33, 34 WpHG)
ISIN
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
100.00%
100.00%
% of voting rights
attached to shares
(total of 7.a.)
Resulting situation
Previous notification
0.00%
7.5%
Other assurance services
29
2
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.
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).
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).
Financial services rendered to that company led to interest income of €0 million (2022: €207 million).
Porsche AG received a capital contribution from Porsche Holding Stuttgart GmbH in 2023 in the amount of
€0 million (2022: €3,057 million).
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).
The maximum credit risk for financial guarantees issued to joint ventures amounted to €62 million (2022:
€66 million).
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.
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).
Receivables from the State of Lower Saxony mainly relate to bonds of €0 million (2022: €33 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
%
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.
23
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.
Consolidated Financial Statements Notes to the consolidated financial statements
3
12
4
15
16
2022
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.
2023
Short-term employee benefits
€ million
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:
390
↑↓ ↑ ||
389
Benefits based on performance shares
Post-employment benefits
Tax advisory services
Porsche Gesellschaft m.b.H.
absolute
Name
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
392
↑↓ ↑ |||
391
% of voting rights (if at
least held 3% or more)
Voting rights
Total
%
Voting rights
absolute
Cash or
physical
settlement
Exercise or
conversion period
Expiration or
maturity date
Consolidated Financial Statements Notes to the consolidated financial statements
claim
% of voting rights
instruments
Other services
HMP Vermögensverwaltung GmbH
%
%
%
Dr. Hans Michel Piëch GmbH
through
%
%
Dr. Hans Michel Piëch
5% or more)
(if at least held 5% or
more)
Total of both
(if at least held
%
Conditional transfer
%
There were no events of significance for the net assets, financial position and results of operations after the end of
fiscal year 2023.
3
5
100.00%
0.00%
b.2. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
0
Total
DE000PAG9113
Direct (section 33
WPHG]
Indirect (section 34
WpHG)
Direct (section 33
WPHG)
2022
2023
%
Indirect (section
34 WpHG)
455,500,000
455,500,000
0
100.00%
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.
%
Total
%
%
Voting rights
46. SUBSEQUENT EVENTS
Exercise or
conversion period
Expiration or
maturity date
b.1. Instruments according to section 38 (1) no. 1 WPHG
Type of instrument
0
5
0
4
Voting rights
absolute
EMISSION AND CONSUMPTION INFORMATION
464
NONFINANCIAL KEY FIGURES
440
KEY FINANCIAL FIGURES
437
TCFD INDEX
434
431
GRI CONTENT INDEX
425
ABOUT THIS REPORT
SASB INDEX
469
OPINIONS
473
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
Stuttgart, February 19, 2024
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.
TO DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT
GLOSSARY
INDEPENDENT AUDITOR'S REPORT
408
↑↓ ↑ ||
407
LEGAL NOTICE
476
FINANCIAL CALENDAR 2024
RESPONSIBILITY STATEMENT
422
Porsche Services Ibérica, S.L., Madrid
419
100.00 100.00
0.9264
CHF
Porsche Schweiz AG, Rotkreuz
2022
5
41,771
-106
100.00 100.00
7.8700
CNY
Shanghai
Porsche Design Sales (Shanghai) Co., Ltd.,
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.
803
INDEPENDENT AUDITOR'S REPORT
5,991
Porsche Design Studio North America, Inc., Beverly
INDEPENDENT AUDITOR'S REPORT
417
409 INDEPENDENT AUDITOR'S REPORT
408 RESPONSIBILITY STATEMENT
FURTHER INFORMATION
918 Spyder
2022
20
14
405
Consolidated Financial Statements Notes to the consolidated financial statements
2022
6.00
6.00
7.8700
406
In our opinion, on the basis of the knowledge obtained in the
audit,
AUDITOR'S RESPONSE
and of its financial performance for the reporting year from
January 1, 2023 to December 31, 2023, and
412
↑↓ ↑ 0 |||
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.
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.
Our audit procedures did not lead to any reservations relating
to the completeness and valuation of provisions for warranty
obligations.
REFERENCE TO RELATED DISCLOSURES
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.
OTHER INFORMATION
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.
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.
In connection with our audit, our responsibility is to read the
other information and, in so doing, to consider whether the other
information
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.
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.
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.
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.
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.
Auditor's responsibilities for the audit of the
consolidated financial statements and of the
combined management report
↑↓ ↑ |||
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.
-Evaluate the consistency of the combined management
↑↓ ↑
- 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.
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.
-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.
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.
REASONS WHY THE MATTER WAS DETERMINED
TO BE A KEY AUDIT MATTER
1. Recognition and recoverability of
development costs
Below, we describe what we consider to be the key audit
matters:
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.
KEY AUDIT MATTERS IN THE AUDIT OF THE
CONSOLIDATED FINANCIAL STATEMENTS
410
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.
↑↓ ↑ ||
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.
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.
409
-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
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.
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 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.
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.
REASONS WHY THE MATTER WAS DETERMINED
TO BE A KEY AUDIT MATTER
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
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.
Our audit procedures did not lead to any reservations relating to
the recognition and recoverability of capitalized development
costs.
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.
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.
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.
AUDITOR'S RESPONSE
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.
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.
- 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.
122
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.
USD
Sensigo, Inc., Wilmington / DE
A. Equity-accounted companies
USD
Pull Data Inc., Santa Monica / CA
III. JOINT VENTURES
USD
HIF Global LLC, Houston / TX
USD
1.1077
1.1077
1.1077
1.1077
Group 14 Technologies, Inc., Wilmington / DE
1,709
13,436
100.00 100.00
7.8700
CNY
2. International
2022
1,831
16,724
2022
Stellar Telecommunications S.A.S., Meudon
EUR
3.36 3.36
11.65 11.65
33.00 33.00
33.00 33.00
20.00 20.00
2022
-7,001
80,136
6.08 6.08
EUR
1KOMMA5° GmbH, Hamburg
B. Companies accounted for at cost
1. Germany
2. International
V. OTHER EQUITY INVESTMENTS
1. Germany
2022
-475
-441
2023
4,6
2023
2022
2022
-19,862
-85,481
587,807
41,342
100.00 100.00
EUR
Porsche Werkzeugbau s.r.o., Dubnica nad Váhom
Shanghai Advanced Automobile Technical Centre
Co., Ltd., Shanghai
2022
2022
208
2022
-4,777
2022
-1,288
158
50,165
11.33 11.33
4.99 4.99
EUR
Fanzone Media GmbH, Berlin
2022
19,032
EUR
Customcells Holding GmbH, Itzehoe
2022
1,114
1,058
3,865,219
902
-396
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
1.1077
1.4612
SGD
USD
New Horizon GmbH, Berlin
aware THE PLATFORM GmbH, in Liquidation, Berlin
EUR
-305
-863
5.14 5.14
EUR
The Business Romantic Society Verwaltungs
GmbH, Berlin
2022
69
31,074
100.00 100.00
EUR
2022
4
-92
2022
-8,308
2020
-150
618
2,974
693
40.00 40.00
EUR
P2 eBike GmbH, Stuttgart
2022
16.64 16.64
EUR
5.00 5.00
41
2023
2022
-8,315
28,110
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
2022
761
2,229
50.00 50.00
EUR
Smart Press Shop GmbH & Co. KG, Halle
Ludwigsburg
EUR
50.00
onGRID Sports Technology GmbH, Berlin
EUR
NitroBox GmbH, Hamburg
EUR
My Inner Health Club GmbH, in Liquidation, Berlin
EUR
Impact Labs GmbH, Hamburg
2022
4
37
50.00
50.00
EUR
Smart Press Shop Verwaltungs-GmbH, Stuttgart
10.00
EUR
und Wirtschaft GmbH, Stuttgart
HWW-Höchstleistungsrechner für Wissenschaft
2022
387
23,195
50.00
Porsche Services Middle East & Africa FZE, Dubai
Porsche Services Singapore Pte. Ltd., Singapur
Porsche Smart Battery Shop s.r.o., Dubnica nad
Váhom
2022
-4,177
Denizen GmbH, Berlin
2022
19
2022
-396
33
5.55 5.55
EUR
Daato Technologies GmbH, Berlin
2022
-4,711
24,484
31
50.00 50.00
EUR
Axel Springer Porsche Management GmbH, Berlin
50.00 50.00
EUR
Axel Springer Porsche GmbH & Co. KG, Berlin
1. Germany
2022
-873
EUR
10
5.00
-2
95,817
3.33
3.33
EUR
e.ventures europe VI GmbH & Co. KG, Hamburg
Intelligent Energy System Services GmbH,
2022
10
-6,255
73,600
7.91 7.91
EUR
e.ventures europe V GmbH & Co. KG, Hamburg
2022
-1,999
1,495
50.00 50.00
EUR
FlexFactory GmbH, Stuttgart
2022
-1,102
5.00
KRW 1.440.7150
Porsche Services Korea LLC, Seoul
1.4681
2022
7,140
9,404
618
2. International
50.00 50.00
100.00 100.00
EUR
7.5345
HRK
local currency Footnote Year
in thousands,
Profit/loss
Equity
in thousands,
local currency
Total
Indirect
Direct
Currency Dec. 31, 2023
Exchange rate
(1 € =)
Name and domicile of company
Year
local currency Footnote
114
local currency
2022
3.9951
18.7689
MXN
Guadalajara
Porsche Digital Mexico, S. de R.L. de C.V.,
2,5 2014
-5,846
8,247
25.00
4.0378 25.00
QAR
2022
-13
92,999
49.00
49.00
EUR
Bugatti International Holding S.à r.I., Luxemburg
Material Science Center Qatar QSTP-LLC, in
Liquidation, Doha
2022
39
39
100.00 100.00
ILS
Porsche Digital, Inc., Atlanta / GA
Total
in thousands,
2022
843,451
0.9264
CHF
Porsche Design Timepieces AG, Solothurn
2022
-2,307
5,693
1,025,116
75.00 75.00
100.00 100.00
33.9211
TWD
1.4612
SGD
Porsche Singapore Pte. Ltd., Singapur
Porsche Taiwan Motors Ltd., Taipei
1.1077
USD
Hills / CA
CNY
EUR
100.00 100.00
1,787
Porsche Digital China Ltd., Shanghai
Direct Indirect
CNY
100.00 100.00
100.00 100.00
100.00 100.00
in thousands,
(1 € =)
Currency Dec. 31, 2023
Porsche Digital Croatia d.o.o., Zagreb
Porsche Digital España, S.L., Barcelona
Porsche Digital Israel Ltd., Tel Aviv
Name and domicile of company
Profit/loss
Equity
Exchange rate
in capital in %
Porsche AG's interest
in capital in %
Porsche AG's interest
402
401
Consolidated Financial Statements Notes to the consolidated financial statements
2022
8,713
2022
797
4,614
22,888
2022
48
7.8700
EUR
USD
Porsche Drive Canada, Ltd., Toronto / ON
45.00
20.63 20.63
EUR
Rimac Group d.o.o., Sveta Nedelja
2023
4,6
100.00 100.00
1.1077
USD
7.5345 45.00
HRK
Bugatti Rimac d.o.o., Sveta Nedelja
Porsche Engineering Services North America, Inc.,
Carson / CA
2. International
2022
4,553
13,425
100.00 100.00
4.9759
RON
Porsche Engineering Romania S.R.L., Cluj-Napoca
2022
3,693,661
844,247
16,204
101,501
-62,741
CAD
21.65 21.65
EUR
&Charge GmbH, Frankfurt am Main
Porsche Sales & Marketplace Canada, Ltd.,
Toronto / ON
1. Germany
2023
75.00
2022
-2,673
10,672
B. Associates accounted for at cost
2023
4,6
100.00 100.00
100.00 100.00
7.8700
NOK 11.2408 75.00
CNY
Porsche Motorsport Asia-Pacific Ltd., Shanghai
Porsche Norge AS, Oslo
EUR
Porsche Investments Management | S.à r.l.,
Luxemburg
2022
2022
1.1077
72,068
7.8700
-1,963
3,037
100.00 100.00
100.00 100.00
EUR
Porsche Drive S.r.l., Trento
1.1077
USD
Porsche Drive LLC, Atlanta / GA
A. Equity-accounted associates
2022
-566
2022
-5,131
1,034
-66
IV. ASSOCIATES
2022
4
-1,447
100.00 100.00
100.00 100.00
100.00 100.00
1.4681
CAD
2022
100.00 100.00
1. Germany
HRK
CNY
Porsche Engineering (Shanghai) Co., Ltd., Shanghai
2022
-56,289
2022
22,160
358,264
382,045
15.12 15.12
EUR
IONITY Holding GmbH & Co. KG, München
2022
-38,224
28.97
28.97
EUR
Bertrandt AG, Ehningen
2022
177
213
24,301
68.17 68.17
7.5345
Porsche eBike Performance d.o.o., Sveta Nedelja
2022
10.00
7.75 7.75
5.00 5.00
7.35 7.35
5.44 5.44
27
1.1077
USD
Valence Security Inc., Wilmington / DE
1.1077
USD
Urgent.ly Inc., Vienna / VA
1.1077
USD
TriEye Ltd., Tel Aviv
Via Transportation, Inc., New York / NY
0.9264
The Embassies of Good Living AG, Zürich
1.1077
USD
Tactile Mobility Ltd., Haifa
4.3409
PLN
Stretch Me Sp. z o.o., Krakau
7.8700
CNY
CHF
USD
1.1077
Wayray AG, Zürich
Further information Independent auditor's report
419
↑↓ ↑ ||
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
1.1077
USD
Shanghai Powershare Tech Ltd., Shanghai
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
The Executive Board
Stuttgart, February 19, 2024
2022
0.73
1.1077
USD
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
CNY
Intamsys Technology Ltd., Dongguan
7.8700
CNY
Hangzhou Wanxiang Culture Technology Co., Ltd.,
Hangzhou
2021
10
-2,379
247,785
9.09 9.09
Playbook Technologies Inc., Ridgewood / NJ
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.
USD
6.04
4.00 4.00
1.1077
USD
RunBuggy OMI, Inc., Newark / DE
2022
4.61 4.61
1.1077
USD
RSE Markets, Inc., Dover / DE
2022
2022
2021
10
-627
49,683
2022
2022
2022
-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
1.1077
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,
- Performance of agreed-upon procedures
OTHER MATTER-USE OF THE AUDITOR'S
REPORT
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.
415
Further information Independent auditor's report
416
GERMAN PUBLIC AUDITOR RESPONSIBLE
FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is
Maxim Orlov.
3. Company information outside of the annual
report referenced in the notes to the
consolidated financial statements and in
the combined management 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.
INDEPENDENT AUDITOR'S REPORT
TO DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT
APPENDIX TO THE AUDITOR'S REPORT:
1. Parts of the combined management report
whose content is unaudited
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.
2. Further other information
"Other information" comprises the following parts of the annual
report, which were provided to us prior to us issuing this audi-
tor's report:
Magazine
- To our shareholders
- Non-statutory audit of IT systems
- Sustainability
- Non-statutory assurance services with regard to
financial 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 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.
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.
OTHER LEGAL AND REGULATORY REQUIREMENTS
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
OPINION
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.
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.
BASIS FOR THE OPINION
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).
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.
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.
The Supervisory Board is responsible for overseeing the process
for preparing the ESEF documents as part of the financial
reporting process.
GROUP AUDITOR'S RESPONSIBILITIES FOR THE ASSURANCE
WORK ON THE ESEF DOCUMENTS
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:
- 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.
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.
- 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.
- 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 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 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.
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:
1.1077
Corporate governance
- Further information
LIMITATION OF LIABILITY
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
third parties in the context of this engagement
(www.de.ey.com/general-engagement-terms).
Stuttgart, February 28, 2024
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
INDEPENDENT AUDITOR'S REPORT
ON A LIMITED ASSURANCE ENGAGEMENT
To Dr. Ing. h.c. F. Porsche AG, Stuttgart
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").
Not subject to our assurance engagement are other references
to disclosures made outside the non-financial reporting as well
as base-year disclosures.
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.
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.
Matischiok
Wirtschaftsprüfer
[German Public Auditor]
Orlov
Wirtschaftsprüfer
[German Public Auditor]
RESPONSIBILITIES OF THE
EXECUTIVE DIRECTORS
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.
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.
Responsibility statement
The audit of the content of the remuneration report described
in this auditor's report comprises the formal audit of the
418
but not the consolidated financial statements, not the manage-
ment report disclosures whose content is audited and not our
auditor's report thereon.
Stuttgart, February 28, 2024
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
Matischiok
Wirtschaftsprüfer
[German Public Auditor]
Orlov
Wirtschaftsprüfer
[German Public Auditor]
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.
RESPONSIBILITIES OF THE EXECUTIVE
DIRECTORS AND THE SUPERVISORY BOARD
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)
or error.
AUDITOR'S RESPONSIBILITY
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.
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.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
OPINION
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.
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
417
Further information Independent auditor's report
↑↓ ↑ ||
OTHER MATTER - FORMAL AUDIT OF THE
REMUNERATION REPORT
USD
Grove Ventures L.P., Grand Cayman
2022
WORKERBASE GmbH, München
3 Different fiscal year
2 In liquidation
2023
5.69
5.69
EUR
Triple Al GmbH, Berlin
2020
-790
-784
2022
2.34 2.34
5.00 5.00
1.1077
1.1077
USD
USD
Zededa, Inc., San Jose / CA
Zync Inc., San Francisco / CA
1Profit and loss transfer agreement
2022
3.70 3.70
EUR
Sharpist GmbH, Berlin
2021
EUR
-386
4.97
10,700
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
3.9951
ILS
Anagog Ltd., Tel Aviv
1.1077
USD
AM Batteries LLC, Shrewsbury / MA
1.1077
USD
actnano Inc., Dover / DE
2. International
5 Currently not trading
4 Short fiscal year
2022
-326
4.97
2022
-370
8.35
11.57
(1 € =)
Profit/loss
Equity
Exchange rate
in capital in %
Porsche AG's interest
in capital in %
Porsche AG's interest
404
403
Consolidated Financial Statements Notes to the consolidated financial statements
2022
4
-567
315
2022
2022
2022
-173
-1,325
817
10
2022
in thousands,
2023
in thousands,
Name and domicile of company
8.35
11.57
EUR
EUR
Retorio GmbH, München
RYDES GmbH, Berlin
local currency Footnote Year
in thousands,
Profit/loss
Equity
in thousands,
local currency
Total
Indirect
Direct
Currency Dec. 31, 2023
Name and domicile of company
Year
local currency Footnote
local currency
Total
Indirect
Direct
Currency Dec. 31, 2023
Exchange rate
(1 € =)
1,400
7 Newly acquired company
-1,727
1.1077
USD
Fontinalis Capital Partners III, L.P., Detroit / MI
2022
10
2021
349,713
593,081
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
USD
e.ventures US V, L.P., San Francisco / CA
1.1077
USD
DSP Concepts, Inc., Dover / DE
9.64 9.64
1.1077
57,235
10
1.63
1.63
1.1077
USD
Grove Ventures III L.P., Grand Cayman
2021
10
-2,497
67,304
2.50
2.50
1.1077
USD
Grove Ventures II L.P., Grand Cayman
2022
4.89
4.89
3.9951
ILS
Griiip Automotive Engineering Ltd., Petach Tikva
2021
22,895
2023
USD
2022
14.90 14.90
0.94 0.94
EUR
2022
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
-19,929
2,368
Dream Machine Innovations Inc., Wilmington / DE
-5,193
2022
0.79 0.79
1.1077
USD
Cresta Intelligence Inc., Wilmington / DE
2022
4.90 4.90
1.1077
USD
Connect IQ Labs, Inc., Redwood City / CA
2022
10.08 10.08
1.1077
USD
CarPutty Inc., Wilmington / DE
2022
-3,025
5,598
4.60 4.60
0.8691
GBP
Bumper International Ltd., London
2022
2,164
Xuanlin (Shanghai) Information Technology Co.,
Ltd., Shanghai
100.00 100.00
2022
& Co. Vermietungs KG, Mainz
EUR
94.00
94.00
-447
-138
10 2022
Porsche Financial Services Great Britain Ltd.,
Reading
Datura Grundstücksverwaltungsgesellschaft mbH
3,383
GBP
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
EUR
JPY 156.7900
KRW 1.440.7150
CHF
0.9264
USD
1.1077
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
104,785
12,902
0.8691
21,637
100.00 100.00
EUR
100.00 100.00
15,704
-28,114
2022
Porsche Financial Services Canada G.P.,
Mississauga / ON
CAD
1.4681
100.00 100.00
31,924
8,049
8
2022
Cetitec GmbH, Pforzheim
EUR
100.00
100.00
4,137
3,012
2022
Porsche Financial Services France S.A.S.,
Dastera Grundstücksverwaltungsgesellschaft mbH
Asnières-sur-Seine
2022
EUR
& Co. Vermietungs KG, Mainz
94.00
868
425
2022
EUR
Porsche Funding L.P., Atlanta / GA
USD
1.1077
100.00 100.00
100.00 100.00
Porsche Hong Kong Ltd., Hongkong
HKD
100.00 100.00
8.6529 100.00
EUR
99.99
100.00
99.99
18,669
208,347
139,364
158,092
13,965,531
114,976
6,168
2022
Over Take GmbH, Köln
EUR
100.00
37,246
9,741
-138,252
Porsche Ibérica S.A., Madrid
EUR
Manthey Servicezentrum GmbH, Meuspath
2022
94.00
-212
153
10
2022
103,091
8,021,442
76,506,613
11,176
2022
Initium GmbH, Berlin
EUR
100.00 100.00
125
2022
898,676
2022
Manthey Racing GmbH, Meuspath
EUR
51.00
51.00
10,074
3,217
2022
1,417,573
EUR
Cellforce Group GmbH, Tübingen
1. Germany
2022
in thousands,
local currency Footnote Year
USD
EUR
1.1077
100.00 100.00
100.00 100.00
2,673
187
2022
Porsche Zentrum Zug, Risch AG, Rotkreuz
CHF
Profit/loss
CZK 24.7180
1.1077
100.00 100.00
100.00 100.00
44,641
380,454
140,691
5,371
2022
PPF Holding AG, Zug
CHF
0.9264
0.9264 100.00
82,855
2022
USD
Equity
in thousands,
local currency
Total
-1,660
400
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 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
(1 € =)
Currency Dec. 31, 2023
in thousands,
in thousands,
Direct Indirect
Total
local currency
local currency Footnote
Year
Name and domicile of company
Exchange rate
(1 € =)
Currency Dec. 31, 2023
Direct
Indirect
PREV LLC, Atlanta / GA
USD
1.1077
-11,105
CNY
7.8700
100.00 100.00
23,715
-75
2022
USD
Porsche Financial Leasing Ltd., Shanghai
CNY
1.1077
7.8700
100.00 100.00
100.00 100.00
4,6,10
2023
196,499
116
2022
B. Unconsolidated companies
Porsche Financial Services Australia Pty. Ltd.,
Collingwood
AUD
1.6292
100.00 100.00
4,594
873
Shanghai Jie Gang Enterprise Management Co.,
Ltd., Shanghai
8
Porsche Financial Auto Securitization Trust 2023-
2, Atlanta / GA
1.1077
2022
PSHIFT LLC, Atlanta / GA
USD
1.1077
Porsche Financial Auto Securitization Trust 2023-
1, Atlanta GA
PVOLT LLC, Atlanta / GA
USD
1.1077
100.00 100.00
100.00
100.00 100.00
100.00 100.00
100.00 100.00
12,468
6,663
163,674
141,760
35,167
4,729
-36
2022
2022
10
63,188
68,759
2022
10
2022
8,668
10
2022
4,6,10
USD
2023
2022
100.00 100.00
EUR
100.00 100.00
2,407
819
2022
79,560
10,075
2022
Porsche Consulting Ltda., São Paulo
BRL
5.3750
1.4681
100.00 100.00
3,274
2022
Porsche Motorsport North America, Inc.,
Porsche Consulting S.A.S., Paris
EUR
Santa Ana / CA
USD
1.1077
100.00 100.00
15,147
12,322
CAD
Porsche Consulting Canada Ltd., Toronto / ON
2022
1,709
2022
29,649
7,220
2022
10
2022
MHP Consulting UK Ltd., Birmingham
GBP
0.8691
100.00 100.00
-121
730
2022
Porsche Logistics Services LLC, Atlanta / GA
USD
1.1077
Porsche Middle East and Africa FZE, Dubai
USD
1.1077 100.00
100.00 100.00
100.00
4,852
-8
3,795
2022
Porsche Design Asia Hong Kong Ltd., Hongkong
HKD
2022
Porsche Design Italia S.r.I., Padua
EUR
100.00 100.00
276
-3
2022
Porsche Retail Italia S.r.l., Mailand
EUR
100.00 100.00
12,884
3,925
2022
Porsche Design Netherlands B.V., Roermond
EUR
100.00 100.00
707
231
2022
Porsche Sales & Marketplace Inc., Atlanta / GA
USD
P3X GmbH & Co. KG, Gilching
1.1077
18,117
1,786
72,369
0.8691
8.6529
Porsche Retail Group Australia Pty. Ltd.,
Collingwood
AUD
1.6292
100.00 100.00
61,684
11,987
2022
Porsche Design Great Britain Ltd., Reading
0.8691
100.00 100.00
100.00 100.00
100.00 100.00
387
534
2022
3,389
2
2022
-6,074
-404
2022
Porsche Retail Group Ltd., Reading
GBP
100.00 100.00
2022
GBP
31,210
Porsche Innovative Lease Owner Trust 2016-A,
Atlanta / GA
USD
1.1077
Porsche International Financing DAC, Dublin
Porsche International Reinsurance DAC, Dublin
EUR
100.00
EUR
100.00 100.00
100.00
100.00 100.00
109,665
37,012
10
2022
AFN Ltd., Reading
GBP
5
0.8691
134,824
229,103
28,331
2022
Cetitec d.o.o., Cakovec
HRK
7.5345
18,788
2. International
2022
2022
2022
100.00
100.00
100.00
3,825
2023
17,524
-10,667
2022
2022
P3X Management GmbH, Gilching
EUR
2022
Porsche eBike Performance GmbH, Ottobrunn
EUR
3,812,724
2022
serva GmbH, in Liquidation, Stuttgart
EUR
100.00 100.00
60.00 60.00
100.00 100.00
27
69,532
1,187
2
4
2022
2022
10,209
Cetitec USA Inc., Dublin / OH
-21,006
-52
1.1077
3,357
-49
2022
2022
2023
2023
16,305
2022
5,227,246
2022
MHP (Shanghai) Management Consultancy Co.,
Ltd., Shanghai
4.9759
7.8700
25,678,803
2022
MHP Americas, Inc., Atlanta / GA
USD
1.1077
537
2022
MHP Consulting Romania S.R.L., Cluj-Napoca
USD
100.00 100.00
100.00 100.00
100.00 100.00
RON
3,377
200
2022
CNY
Porsche Italia S.p.A., Padua
INFINUM JV Holding d.o.o., Karlovac
EUR
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
100.00 100.00
Luxemburg
EUR
100.00
EUR
Porsche Japan K.K., Tokio
Porsche Korea Ltd., Seoul
JPY 156.7900 100.00
KRW 1.440.7150 100.00
Porsche Latin America, Inc., Miami/FL
Porsche Investments Management S.A.,
1.1077
Porsche Leasing Ltd., Atlanta / GA
USD
1.1077
100.00
100.00 100.00
100.00
100.00
100.00 100.00
100.00 100.00
392,652
150,661
6,727,246
29,921,771
4,978
-12,060
2022
USD
EUR
Levi Rally Center Oy, Rovaniemi
8,726
9,594
€ million
16.6
18.6
6,425
%
4.42/4.43
5,033
6,938
€ million
7,420
Automotive operating profit
18.6
4,970
7,855
€ million
3,973
3,866
3,676
Automotive cash flow from operating activities
€ million
8,256
7,010
Automotive net liquidity³
€ million
7,215
Automotive research and development costs*
8,282
Automotive net cash flow
5.44/5.45
10.6
€
18.0
%
€ million
37,637
18.0
33,138
16.0
%
25.7
25.2
24.5
%
11.2
12.1
%
12.8
5.66/5.67
11.3
||| ơ V12
€ million
7,284
6,772
5,314
€ million
7,375
7,081
5,729
€ million
5,157
4,967
4,038
Earnings per ordinary share/preferred share
Automotive segment
13.7
2,834
Profit before tax in relation to average equity tied up in the financial services segment.
2,417
336,280
321,321
300,081
Number
42,140
39,162
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.
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.
Vehicles
⁹2021 incl. 16,953 vehicles not yet eligible for registration at the time of factory delivery due to the semiconductor shortage.
Further information Key financial figures
437
438
Overview of the profit before tax, tax expenditure, and tax payments per country of the fully consolidated companies
of the Porsche AG Group
Profit before tax
under IFRS after
consolidation
€ million
Income tax
expenditure after
consolidation
€ million
€ million
Deferred taxes
Total tax
expenditure
Percentage
€ million
40,530
€ million
10 Value as of the reporting date.
301,915
309,884
320,221
Automotive capital expenditure
€ million
1,964
1,642
1,378
Automotive return on investment
%
24.7
25.0
21.3
Financial services segment
Financial services operating profit
€ million
302
341
313
Financial services return on sales
Vehicles
Employees 10
Production
Deliveries
Other non-financial performance indicators
21.2
2,651
20.5
%
Financial services return on equity before tax?
10.0
10.3
8.8
%
19.6
€ million
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.
2022'
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
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
DISCLOSE SCOPE 1, SCOPE 2, AND, IF
APPROPRIATE, SCOPE 3 GREENHOUSE GAS (GHG)
EMISSIONS, AND THE RELATED RISKS:
Greenhouse gas emission data are disclosed under → Nonfinancial
key figures, → Climate change mitigation.
DESCRIBE THE TARGETS USED BY PORSCHE
AG 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 opportuni-
ties. This is available in the following sections:
→ Strategy field Decarbonization
→ Strategy field Governance and Transparency
→ Sustainability management and organization
→ Climate change mitigation
→ Energy and adapting to climate change
Further information TCFD index
433
434
DISCLOSE THE METRICS USED BY PORSCHE
AG TO ASSESS CLIMATE-RELATED RISKS AND
OPPORTUNITIES IN LINE WITH ITS STRATEGY
AND RISK MANAGEMENT PROCESS:
SASB INDEX
Response
Topic/Code/Requirement
Fuel economy and use-phase emissions
TR-AU-410a.1
Sales-weighted average passenger fleet
fuel economy, by region
TR-AU-410a.2
Number of (1) zero-emission vehicles
sold, (2) hybrid vehicles sold, and (3)
plug-in hybrid vehicles sold
Response
Porsche AG and selected subsidiaries are part of the emissions pools of the Volkswagen Group
or are assessed separately in selected subsidiaries.
2023
Number
%
Worldwide
Zero-emission vehicles (ZEV)
41,023
12.81
Topic/Code/Requirement
Hybrid vehicles'
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 PORSCHE AG'S PROCESSES FOR
MANAGING CLIMATE-RELATED RISKS:
Total tax
payments
€ million
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
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.
More information about physical climate risks and the applied
scenario analyses is available under → Energy and climate change
adaption.
Further information TCFD index
431
↑↓ ↑ ||
432
↑↓ ↑ 0 |||
Transitory climate risks
DESCRIBE HOW PROCESSES FOR IDENTIFYING,
ASSESSING, AND MANAGING CLIMATE-RELATED
RISKS ARE INTEGRATED INTO PORSCHE AG'S
OVERALL RISK MANAGEMENT:
The risk inventory also continues to contain transitory climate
risks. This term denotes risks that arise during the transition to a
lower-carbon economy.
- Technological transitory climate risk
- Market and demand-based transitory climate risk
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.
The financial assessment of transitory and physical climate
risks follows the methodology of the greater risk management
system.
DESCRIBE THE IMPACT OF CLIMATE-RELATED
RISKS AND OPPORTUNITIES ON PORSCHE
AG'S BUSINESSES, STRATEGY, AND FINANCIAL
PLANNING:
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
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.
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.
More information about climate-related risks and opportunities
is available under → Climate change mitigation, → Energy and adapting to
climate change, → Nonfinancial key figures.
DESCRIBE THE RESILIENCE OF THE COMPANY'S
STRATEGY AGAINST DIFFERENT CLIMATE-RE-
LATED SCENARIOS, INCLUDING A 2°C OR LOWER
SCENARIO:
Porsche AG will analyze and address the physical and transitory
impacts of climate change through its strategy.
DESCRIBE PORSCHE AG'S PROCESSES FOR
IDENTIFYING AND ASSESSING CLIMATE-
RELATED RISKS:
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.
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
The following transitory risks have been identified for
Porsche AG by the project:
0
0
Plug-in hybrid vehicles (PHEV)
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.
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.
'Porsche China, Porsche Canada, Porsche Brazil, Porsche South Korea, Porsche Taiwan, and Porsche Japan.
Further information SASB index
435
↑↓ ↑ 0 |||
Topic/Code/Requirement
Material efficiency and recycling
TR-AU-440b.1
Total amount of waste from
manufacturing, percentage recycled
TR-AU-440b.2
Weight of end of-life material recovered
TR-AU-440b.3
Average recyclability of vehicles sold
Response
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.
Description of the management of
risks associated with the use of critical
materials
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.
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.
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.
KEY FINANCIAL FIGURES
Most important key performance indicators
Porsche AG Group
Sales revenue
Return on sales
Automotive segment
Automotive EBITDA margin
Automotive net cash flow margin
Automotive BEV share
Other financial performance indicators
Porsche AG Group
Operating profit
Profit before tax
Profit after tax
Automotive return on sales
Automotive EBITDA²
436
2023
Porsche AG and selected subsidiaries had a waste recycling rate of 99% in 2023. The waste
recycling rate encompasses thermal recycling.
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
29,403
9.18
Electrified vehicles (EV)
70,426
21.99
Internal combustion engines
249,795
78.01
Activity metrics
TR-AU-000.A
Number of vehicles manufactured
TR-AU-000.B
Number of vehicles sold
Product safety
TR-AU-250a.1
Percentage of vehicle models rated by
NCAP programs with an overall five-star
safety rating, by region
TR-AU-250a.2
Number of safety-related defect
complaints; percentage investigated
TR-AU-250a.3
Number of vehicles recalled
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.
2021
100% of safety-related defect complaints have been investigated.
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
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.
Percentage
Russia
of the Porsche AG Group for the period from January 1 to December 31, 2023
0.47%
to the state (taxes, duties)
2,037
16.1
1,962
16.3
1,605
15.7
South Korea
31.53
9.45
7.31
16.76
0.76%
10.22
11.59
Income tax
no data
no data
no data
no data
no data
no data
Luxembourg
-20.80
0.00
0.00
0.00
0.00%
0.00
0.53%
0.00%
0.40%
-4.49
0.26
6.18
0.28%
7.45
0.34%
to shareholders (profit transfer)
916
7.2
3,986
33.1
1,862
18.2
Italy
35.05
8.96
13.40
9.59
0.43%
22.39
1.02%
to employees (wages, salaries, benefits)
5,149
40.7
4,961
41.2
4,478
43.7
Japan
27.27
13.45
-3.81
Other taxes
no data
no data
28.79
9.47
-6.49
2.98
0.13%
United States
1,125.23
Total
7,375.00
182.22
1,986.78
-70.94
231.22
111.27
2,218.00
5.02%
100.00%
7.58
243.18
2,190.00
Taiwan
0.35%
12,652
100.0
12,047
100.0
10,247
100.0
11.10%
100.00%
The previous year has been updated (see the annotations regarding IFRS 17 → Effects of new or amended IFRS).
FISCAL TRANSPARENCY
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.
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.
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.
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
439
Value added
21.2
2,176
8.1
no data
no data
no data
no data
DESCRIBE MANAGEMENT'S ROLE IN ASSESSING
AND MANAGING CLIMATE-RELATED RISKS AND
OPPORTUNITIES:
-5.59
0.02
-0.02
0.00
0.00%
-0.89
-0.04%
to creditors (interest expense)
309
2.4
157
1.3
981
33.5
4,241
to the company (reserves)
0.10%
2.09
5.92
0.01%
-1.66
1.85
10.87
Singapore
1.2
126
0.19
Value added statement
28.33
Appropriation
Cost of materials
-23,015
-22,934
-19,363
Brazil
41.79
21.87
-4.01
17.86
0.81%
23.88
1.09%
Depreciation, amortization, and impairment losses
-3,528
0.44%
-3,189
Canada
33.77
0.31
9.34
9.65
0.44%
13.93
0.64%
Other upfront expenditures
-2,592
-1,169
-1,207
Switzerland
14.97
-3,214
2.69
9.59
5.62
2023
2022'
2021
UAE
14.85
0.00
-0.01
-0.01
0.00%
0.00
0.00%
Source
Sales revenue
Austria
0.25%
1.33
0.12
0.47
0.02%
0.24
0.01%
Other income
40,530
1,256
37,637
1,702
33,138
893
Australia
20.90
9.64
-4.02
0.36
-0.85
1.85
0.08%
France
14.78
5.80
-3.68
2.12
0.10%
5.71
0.26%
€ million
%
€ million
%
€ million
%
0.00%
United Kingdom
21.00
-10.39
10.61
0.48%
21.56
0.98%
Hong Kong
52.31
4.39
0.18
4.58
0.21%
2.57
0.12%
59.00
0.00
-0.06%
-1.39
2.73
0.12%
Value added
12,652
12,047
10,247
China
275.10
109.08
43.64
152.72
6.89%
134.43
The previous year has been updated (see the annotations regarding IFRS 17 → Effects of new or amended IFRS).
Czech Republic
4.74
Germany
2021
2022'
2023
76.28%
0.05%
1.14
1,670.61
Irleand
0.07%
83.68%
-0.03
286.65
-5.88
4.49
11.80
Spain
1.57
1,569.80
5,568.98
1.54
1,856.45
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.
110-111
DESCRIBE THE BOARD'S OVERSEEING OF
CLIMATE-RELATED RISKS AND OPPORTUNITIES:
138-152
2-10
Nomination and selection of the highest governance
138-146
body
2-11
Chair of the highest governance body
147-152
2-12
Role of the highest governance body in overseeing the
management of impacts
90-99,210-213
2-13
Delegation of responsibility for managing impacts
90-99,210-213
Governance structure and composition
2-14
Role of the highest governance body in sustainability
reporting
250-252
2-15
Conflicts of interest
2-16
Communication of critical concerns
239, 250-252
2-17
2-18
Collective knowledge of the highest governance body
Evaluation of the performance of the highest gover-
nance body
90-99,210-213
137-138,
153-177
2-19
Remuneration policies
90-99,210-213
153-177
2-9
Workers who are not employees
Page
Omission/comment
180-181
The organization and its reporting practices
2-2
Entities included in the organization's sustainability
reporting
423
2-3
2-4
Reporting period, frequency, and contact point
Restatements of information
423
424
2-5
External assurance
Governance
423
2-6
Activities, value chain, and other business relationships 92, 180-182,
210, 229,
236-240
450-455
456
EDITORIAL REMARKS
The figures presented in the report are rounded to one
decimal place.
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.
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.
The annual and sustainability report is printed exclusively on the
organic paper types "Lessebo Design® Smooth bright, FSC" and
"enviroⓇ pure, FSC".
2-7
Employees
2-8
Activities and workers
Further information GRI content index
425
2024
Approach to stakeholder engagement
94-97
2-30
Collective bargaining agreements
123, 460
Material Topics
GRI 3: Material Topics 2021
3-1
Process to determine material topics
94-99, 423-424
3-2
List of material topics
98,423-424
Economic Performance'
2-29
GRI 3: Material Topics 2021
Management of material topics
GRI 201: Economic Performance 2016
201-1
Direct economic value generated and distributed
201-2 Financial implications and other risks and opportunities
due to climate change
201-4 Financial assistance received from government
Indirect Economic Impacts
99, 129-131,
250-253
276, 439
104-105,
254-269,285,
431-432
99,308,438
GRI 3: Material Topics 2021
3-3 Management of material topics
99, 115
3-3
Stakeholder engagement
94, 131-132
103, 129-132,
250-253
↑↓ ↑ |||
426
GRI standards
2-20
Process to determine remuneration
2-21
Annual total compensation ratio
Strategy, policies, and practices
Page
153-177
2-22
2-23
Statement on sustainable development strategy
Policy commitments
68
129-132,
250-253
2-24
250-253
217, 236-240
105, 109-110,
250-253
Membership associations
2-28
2-1 Organizational details
Compliance with laws and regulations
Mechanisms for seeking advice and raising concerns
2-26
Processes to remediate negative impacts
2-25
131-132,
Embedding policy commitments
2-27
GRI 203: Indirect Economic Impacts 2016
203-1
General Disclosures
GRI 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.
This annual and sustainability report of the Porsche AG Group
consists of the following parts:
Magazine (pages → 6 to 65),
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).
↑↓ ↑ ||
Reporting standards
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
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 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.
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.
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.
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.
MORE INFORMATION ABOUT THE REPORT
Publication and applicability
→ GRI 2-2 and GRI 2-3
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.
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.
External audit
→ GRI 2-5
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.
Topics
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.
Environment
421
[German Public Auditor]
420
RESPONSIBILITIES OF THE AUDITOR
Our responsibility is to express a conclusion with limited assur-
ance on the non-financial reporting based on our assurance
engagement.
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.
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 sustainability
organization and stakeholder engagement,
- 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,
Identification and assessment of risks of material misstate-
ment 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,
- Analytical procedures on selected 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,
- 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.
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.
Further information Independent auditor's report
ASSURANCE CONCLUSION
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.
RESTRICTION OF USE
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.
GENERAL ENGAGEMENT TERMS AND LIABILITY
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.
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.
Stuttgart, 28th February 2024
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
Hinderer
Wirtschaftsprüfer
[German Public Auditor]
Welz
Wirtschaftsprüfer
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.
Social affairs
Corporate governance
Topics in the nonfinancial report
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
Working conditions for own workers
Communities' rights
Personal safety of consumers and/or end-users
Corporate governance, corruption and bribery
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)
Circular economy
Energy (GRI 302), Emissions (GRI 305)
Emissions (GRI 305)
Waste (GRI 306)
Employment (GRI 401), Labor/Management
Relations (GRI 402), Training and Education (GRI
404), Diversity and Equal Opportunity (GRI 405),
Non-discrimination (GRI 406)
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)
Customer Health and Safety (GRI 416),
Customer Privacy (GRI 418)
Employment (GRI 401), Labor/Management
Relations (GRI 402), Occupational Health and
Safety (GRI 403)
Local Communities (GRI 413)
Customer Health and Safety (GRI 416)
Anti-corruption (GRI 205), Supplier Environmental
Assessment (GRI 308)
Procurement Practices (GRI 204), Supplier Social
Assessment (GRI 414)
Indirect Economic Impacts (GRI 203)
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.
GRI 1 used
Applicable GRI Sector Standard(s)
GRI 1: Foundation 2021
None
Water and Effluents (GRI 303)
Biodiversity (GRI 304)
Climate change mitigation
ESSENTIALS SERVICE
GRI
Climate change mitigation
Circular economy
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).
More information is available in the Independent auditor's report
on a limited assurance engagement to audit the nonfinancial
report.
Material topics as part of the nonfinancial report
→ GRI 3-2
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.
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.
Topics in the sustainability report
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
Corporate governance, corruption and bribery
Energy and climate change adaptation
Pollution and substances of concern
Water and marine resources
Biodiversity and ecosystems
Waste
Working conditions for own workers
Communities' rights
CONTENT INDEX
GRI CONTENT INDEX
Corporate governance
Social affairs
Environment
Topics
GRI 2: General Disclosures 2021
From the material topics identified, the Porsche AG Group has derived the definitive GRI sustainability reporting standards, which
are listed in the table below.
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
Application of GRI
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.
Infrastructure investments and services supported
107-108,
451,456
401-2 Benefits provided to full-time employees that are not
provided to temporary or part-time employees
119-126
401-3 Parental leave
459
Labor/management relations
GRI 3: Material Topics 2021
3-3
Non-discrimination
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 406: Non-discrimination 2016
241-246
401-1 New employee hires and employee turnover
406-1 Incidents of discrimination and corrective actions taken 126,460
119-126
GRI 3: Material Topics 2021
3-3
Management of material topics.
Management of material topics.
GRI 402: Labor/management relations 2016
402-1 Minimum notice periods regarding operational changes 125
Occupational health and safety
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 403: Occupational health and safety 2018
119-126,
236-240
403-1 Occupational health and safety management system
403-2 Hazard identification, risk assessment, and incident
Child labor
120
450, 457
460
men
Supplier environmental assessment
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 308: Supplier environmental assessment 2016
236-240
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
236-240,463
119-126
241-246
Training and education
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
457-458
125, 243-246
404-3 Percentage of employees receiving regular perfor-
mance and career development reviews
246
Diversity and equal opportunity
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 405: Diversity and equal opportunity 2016
405-1 Diversity of governance bodies and employees
405-2 Ratio of basic salary and remuneration of women to
GRI 3: Material Topics 2021
3-3
121
investigation
236-240
Supplier social assessment
GRI 3: Material Topics 2021
3-3 Management of material topics
GRI 414: Supplier social assessment 2016
414-1 New suppliers that were screened using social criteria
462
236-240
414-2 Negative social impacts in the supply chain and actions 237-238,
taken
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
126
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
3-3
246-250
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.
248-250
413-2 Operations with significant actual and potential nega-
tive impacts on local communities
Management of material topics
126
GRI 408: Child labor 2016
408-1 Operations and suppliers at significant risk for incidents 240
of child labor
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.
Further information GRI content index
429
↑ ↓ ↑ O |||
430
GRI standards
Page
Omission/comment
TCFD INDEX
Forced or compulsory labor
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 409: Forced or compulsory labor 2016
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
306-5 Waste directed to disposal
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
Management of material topics
203-2 Significant indirect economic impacts
446-448
306-4 Waste diverted from disposal
216, 233
112-113,
233-235,
446-447
Energy
GRI 3: Material Topics 2021
3-3
GRI 302: Energy 2016
Management of material topics.
101-108
302-1 Energy consumption within the organization
440-441
302-2 Energy consumption outside of the organization
302-5 Reductions in energy requirements of products and
440-441
91, 233-235
104-108
Water and Effluents
GRI 3: Material Topics 2021
3-3
Management of material topics
101-104,
110-111
GRI 303: Water and Effluents 2018
303-1
Interactions with water as a shared resource
101-104,
110-111
303-2 Management of water discharge-related impacts
Further information Key financial figures
303-3 Water withdrawal
448-449
303-4 Water discharge
services
449
462-463
250-252
Omission/comment
228-232, 235
115-119
Procurement Practices
Omission/comment
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
GRI 204: Procurement Practices 2016
204-1 Proportion of spending on local suppliers
129-131,237
462-463
250-252
Economic Performance is an additional GRI standard not linked with one of the Porsche AG Group's material sustainability topics.
Anti-corruption
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption
205-2 Communication and training about anti-corruption
policies and procedures
Materials
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 301: Materials 2016
301-1 Materials used by weight or volume
301-3 Reclaimed products and their packaging materials
Page
GRI standards
303-5 Water consumption
Biodiversity
449
GRI 3: Material Topics 2021
3-3
Nitrogen oxides (NOx), sulfur oxides (SOX), and other
significant air emissions
444
Waste
GRI 3: Material Topics 2021
3-3
Management of material topics
GRI 306: Waste 2020
306-1 Waste generation and significant waste-related
91, 101-104,
112-113
112-113
Page
Omission/comment
403-3
Occupational health services
305-7
122
Worker participation, consultation, and communication
on occupational health and safety
121-122
403-5 Worker training on occupational health and safety
403-6
122
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
121, 236 237
122
461
impacts
306-2 Management of significant waste-related impacts
112-113
306-3 Waste generated
446-448
403-4
109
Emissions of ozone-depleting substances (ODS)
305-6
Management of material topics
101-104,
111-112
GRI 304: Biodiversity 2016
304-3 Habitats protected or restored
111-112
Emissions
GRI 3: Material Topics 2021
3-3
Management of material topics
228-232
GRI 305: Emissions 2016
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
442-444
228-232,
Reduction of GHG emissions
305-5
444
GHG emissions intensity
446-448
305-4
Page
GRI standards
GRI standards
428
↑↓ ↑ |||
427
Omission/comment
↑↓ ↑ |||
6.14%
33.61
13.1
17.2
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.
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.
1
1.3
1.4
0.4
Other regions (Australia, Latin America)
6.2
6.1
6.1
11.4
Region: Asia
10.0
10.0
6.0
Region: North America
Porsche Leipzig GmbH
9.5
11.8
8.0
Region: Europe (excluding Germany)
Porsche AG
73.0
70.7
Other subsidiaries'
79.5
21.0
13.4
11.5
15.0
10.6
12.4
17.0
14.4
18.4
32.9
10.5
16.1
19.2
10.9
14.1
11.8
11.0
12.9
16.5
9.3
10.3
21.0
10.0
14.8
21.4
14.8
15.0
20.9
14.4
10.5
Employees exempt from wage agreements and executive employees
Porsche Leipzig GmbH
> 50 years
30-50 years
<30 years
Breakdown by age (%)
12
16
6
Other regions (Australia, Latin America)
56
69
102
Region: Asia
Breakdown by gender (%)
89
100
Region: North America
85
135
134
Region: Europe (excluding Germany)
654
805
1,326
Region: Germany
Total
642
113
Other subsidiaries'
Female
Breakdown by region (%)
Porsche AG
Employees subject to wage agreements
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Male
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Female
71.6
71.6
Male
73.8
28.4
26.2
6.1
6.1
24.9
66.4
66.4
52.4
27.5
27.5
22.7
Region: Germany
28.4
815
18.8
10.3
Total energy from own vehicle operation²
0
0
265,696
220,376
195,680
1,424
2,038
2,920
64,752
59,004
47,341
46,663
Electricity generated internally from renewable energy²
Energy from own vehicle operation (electrical energy)²
Heat²
1,201
1,175
0
Heating oil
Gas
1,201
1,175
Other sites
0
73
72
Specialist energy products
64,752
1,485
1,485
59,004
42,503
Fuel'
* 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
5 Purchased energy products such as refrigeration or compressed air.
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
Energy consumption of vehicle production sites'
3 Locations in Stuttgart-Zuffenhausen and Leipzig.
'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.
2
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.
35,841
10,934
0
0
Other sites
10,901
.8
Development sites*
'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.
14,081
3,147
2,604
2,325
Production sites3,8
14,508
13,226
11,904
0
15.7
47,341
194
362,883
Electricity
69,697
56,609
56,761
Gas
72
363,871
256,210
Primary energy consumption from renewable sources²
Secondary energy consumption from renewable sources³
Air conditioning
69,891
61,087
332,692
362,523
73
381,690
21.7
21.6
35.7
47.7
20.3
19.6
19.2
19.9
20.2
19.2
11.8
14.5
32.4
13.9
Electricity generated internally²
408,116
350,595
368,996
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
No data
304,243
608
Of which from nonrenewable sources
0
2,076
1,963
Combustible gas for manufacturing processes
315,542
Of which generated externally
65,555
53,507
54,391
Of which biomethane
322,686
1,376
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.
1,231
2022
10
2
Other regions (Australia, Latin America)
269
308
319
Other regions (Australia, Latin America)
415
515
452
Region: Asia
683
5
793
Region: Asia
0
0
0
Region: North America
840
905
1,037
Region: North America
54
119
70
889
Region: Europe (excluding Germany)
Number of employees by gender
Male
550
0.0
Other'
80.5
Male
19.5
Female
Breakdown of employees by gender (%)
Breakdown of employees by gender (%)
0
0
1
Female
485
2,530
2,697
494
490
Other'
Male
Number of employees by gender
Female
0
27,658
6,323
6,854
29,241
0
7,607
31,345
0
Other'
2,573
19.0
1,641
2,164
3,067
3,188
2021
2022
2023
By company
Porsche AG
Total
Temporary workers
By region
9,624
10,917
12,059
3,015
Other subsidiaries
4,299
4,580
Porsche Leipzig GmbH
6,353
6,602
7,398
Of which at Weissach (including external locations)
13,764
14,277
14,915
Of which at Stuttgart-Zuffenhausen
20,117
4,240
1,954
2,411
2,262
Region: Europe (excluding Germany)
2,541
2,423
2,664
Region: Germany
30,548
32,135
34,543
Region: Germany
By region
684
856
2,146
723
69
65
54
Porsche Leipzig GmbH
42
52
63
Of which at Weissach (including external locations)
2,220
2,094
2,348
Of which at Stuttgart-Zuffenhausen
Other subsidiaries
2021
18.6
15.4
By gender
> 50 years
30-50 years
<30 years
By age
Total
17.9
17.9
17.7
60.0
63.5
64.0
Female
22.1
18.3
Donations made by the Porsche AG Group'
>50 years
30-50 years
<30 years
Employees by age group
2021
2022
2023
Total number and breakdown of employee turnover'
'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.
2.4
18.6
2.9
Male
1,668
2023
254
323
437
Average hours of training per year per employee
55
69
416
595
756
The disclosure contains all donations made by Porsche AG as well as donations of more than €5,000 made by fully consolidated subsidiaries.
874
By region
1
313
378
11.8
22.1
11.7
Total
2021
2022
2023
€ million
896
1,138
246
Female
4.3
100.0
2022
2023
%
2021
2022
2023
Diversity and equal opportunity
External employment
456
↑↓ ↑ 0 |||
Further information Nonfinancial key figures
455
2021
1 For reasons of data protection, only selected personnel and social key figures are disclosed.
83.9
0.0
0.0
83.9
16.1
16.1
460
0.0
84.6
0.0
0.0
81.4
81.0
For reasons of data protection, only selected personnel and social key figures are disclosed.
Proportion of employees who left the company.
Workers who are not employees but whose work and/or workplace is controlled by
the organization
3,283
100.0
87.5
0.0
0.0
12.5
0.0
0.0
0.0
> 50 years
%
30-50 years
2021
3,348
2022
<30 years
Employee turnover'
Proportion of governance bodies by age group
Male
85.7
85.7
87.5
14.3
14.3
12.5
Governance bodies by gender
Female
2,937
2023
20,879
Total
2,439
17,151
19,273
20,629
22,759
25,064
27,277
1,085
1,214
1,840
3,797
3,803
4,074
4,361
16,253
19,320
21,117
23,317
25,234
662
724
908
349
352
377
3,188
3,253
18,300
3,615
4,079
2,287
40,704
56,674
242,992
306,253
Porsche Leipzig GmbH
Porsche AG
Male
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Female
Total
4,073
212
461
73
76
90
2,272
2,280
2,306
2,557
2,582
2,857
1,535
1,712
226
210,611
39,327
4,199
4,900
24.2
Other subsidiaries'
25.0
36.0
Porsche Leipzig GmbH
55.5
64.9
Porsche AG
Female
27.0
30.9
28.0
22.9
33.0
23.5
25.2
Other subsidiaries¹
Porsche Leipzig GmbH
Porsche AG
Male
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Female
Total
Employees who participated in advanced training
Total
4,329
Male
22.7
25,316
27,646
30,134
2021
2022
2023
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Employees exempt from wage agreements and executive employees
2021
2022
22.2
2023
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
Employees subject to wage agreements
Other subsidiaries'
Porsche Leipzig GmbH
Porsche AG
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.
17.4
24.2
33.0
47.2
Number of participants in advanced training
2022
43,291
32,013
Digital formats
81.3
80.0
79.0
18.7
20.0
21.0
Proportion of female employees who returned to work after parental leave (%)
Proportion of male employees who returned to work after parental leave (%)
1,685
2,018
3,488
Other subsidiaries'
231,605
1,148
2,432
Porsche Leipzig GmbH
1,166
1,263
1,353
268
317
360
1,434
1,580
1,713
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
1,895
26,903
191,875
Offline formats
28.47
41.75
↑↓ ↑ 0 |||
459
Further information Nonfinancial key figures
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.
82.5
66.3
80.0
17.5
33.7
20.0
161,721
1,055
1,380
223
591
344
1,278
1,752
1,724
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.
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.
48,890
51,117
74,648
1,161
29,413
25,886
Porsche AG
Employees subject to wage agreements
Total number of employees who took parental leave'
6,715
11,163
16,430
Other subsidiaries'
2021
2022
2023
40,484
58,343
59,151
269,238
124,085
173,998
Parental leave and return to the workplace
171,284
202,288
249,579
3,466
5,486
7,062
3,848
5,805
6,321
'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.
132,782
31,095
213,193
Porsche AG
29,736
29,799
37,015
Employees exempt from wage agreements and executive employees
8,496
14,631
20,004
Other subsidiaries'
43,184
62,253
63,040
Porsche Leipzig GmbH
180,875
1,184
1,419
350
674
767
1,534
2,025
2,186
Male employees who took parental leave
Female employees who took parental leave
129,195
136,309
186,194
1,351
2,216
2023
458
756
1,177
Leipzig
519
734
591
Of which from destroyed VOCs
2021
2022
2023
t of CO2 equivalent
158
194
570
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
7,175
13,525
104
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.
Of which released directly
579
1,177
2,701
6,419
12,351
2,895
7,175
13,528
9,090
13,160
18,209
Leipzig
Stuttgart-Zuffenhausen
551
Production sites
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
Total
756
16.5
12,218
2022
2023
2021
2022
2023
10
26
53
t of CO2 equivalent
2021
2022
2023
2021
Market-based energy indirect (Scope 2) GHG emissions'
Direct (Scope 1) GHG emissions"
2 The increase in the 2023 reporting year was due to the switch from natural gas to heating oil due to the gas shortages.
Locations in Stuttgart-Zuffenhausen and Leipzig.
Total²
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
t of CO₂ equivalent
7,656
Total
Stuttgart-Zuffenhausen
17,638
Stuttgart-Zuffenhausen
Production sites
Total³
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.
966
658
374
Other sites³
398
283
193
Production sites
Development sites²
0
0
Leipzig
70
0
3
70
0
3
1,434
941
570
0
Average number of training hours for management qualification
194
4,825
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
37,272
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]).
Leipzig³
29,708
32,455
Stuttgart-Zuffenhausen²
75,824
59,593
63,351
69,727
80,131
84,832
Production sites
Total
11,303
11,687
27,204
11,449
2 Local energy mix 242 g CO₂/kWh.
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).
↑ ↓ ↑ |||
457
Further information Nonfinancial key figures
Leipzig
Stuttgart-Zuffenhausen
Production sites
Total
2021
2022
2023
kg/vehicle
VOC from vehicle production sites'
Of which by rented car³
2021
2023
NOx emissions¹²
t
444
↑↓ ↑ 0 |||
443
Further information Nonfinancial key figures
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.
Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
3 Local energy mix 298 g CO₂/kWh.
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.
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.
2022
3,900
6,807
67,876
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
213
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
218
213
Other sites
898
³ The increase in the 2023 reporting year was due to the switch from natural gas to heating oil due to the gas shortages.
466
1,236
877
588
Other sites³
3,663
4,358
3,406
4,959
5,108
4,093
Development sites²
4,561
494
28,584
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
Other indirect GHG emissions (Scope 3)
0
0
0
18,110
40,271
79,325
27,574
9,464
11,376
12,620
51,647
91,945
Of which by plane
5
Of which by rail
Porsche's vehicle fleet'
Total
2021
2022
2023
t of CO₂ equivalent
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.
Business trips²
22,313
Male
Other'
33,981
65,163
Of which combustible biomethane gas for manufacturing processes
72,811
72,605
65,163
Combustible gas for manufacturing processes
2021
2022
2023
MWh
269,750
204,844
72,605
134,694
Energy consumption within the organization'
272,976
209,908
138,830
433,289
347,832
297,836
244,857
374,632
318,524
Gas
Production sites³
Total²
Of which biomethane
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.
72,811
40,864
1,356
Nonproduction-specific waste
2021
2022
Porsche AG
3,725
4,288
4,180
Nonhazardous waste
2,149
2,653
2,997
Heating oil
Hazardous waste
Waste for recycling
9,183
9,670
10,375
Stuttgart-Zuffenhausen
12
16
183
59,266
Development sites*
2,046
15,323
Waste for recycling1,2,3
632
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
2 Locations in Stuttgart-Zuffenhausen and Leipzig.
252,748
254,870
332,182
338,032
335,702
418,591
426,167
414,031
District heating
Electrical energy³
Production sites²
Total
237,283
2021
2023
2021
2022
2023
MWh
Direct energy consumption by primary energy source
Other sites
Electrical energy³
Weissach CHP plant
District heating
Development sites*
Electrical energy³
CHP plants and PV arrays
³ Retroactive correction of the key figure (including fuel) for the 2022 reporting year.
2022
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.
47,405
43,527
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
3,582
2,922
1,959
District heating
8,165
7,989
3,615
11,747
10,911
5,574
13,380
39,263
12,983
2,487
2,292
1,785
58,795
61,949
57,056
74,662
77,224
72,755
51,372
46,021
33,427
13,914
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.
625
1,549
1,782
1,821
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.
Waste for recycling
5,272
5,143
5,055
937
Total
10,378
10,398
Total
Development sites²
2021
2022
2023
t
Nonhazardous waste for recycling'
210
0
8
8,480
0
Nonproduction-specific waste
355
2023
Fresh water withdrawal¹.2
Waste for removal¹,2,3
t
448
↑↓ ↑ 0 |||
Further information Nonfinancial key figures
447
9
8
13
Nonproduction-specific waste
577
731
16
Nonhazardous waste
30
2
1
Hazardous waste
Waste for removal
2,196
882
389
Metallic waste
89
103
Metallic waste
0
4
Waste for recycling
Hazardous waste for recycling'
6,959
7,348
7,823
Leipzig
12
16
174
Nonproduction-specific waste
80
82
Hazardous waste
93
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
Hazardous waste
Waste for removal
20,008
22,586
23,530
Waste diverted from disposal
1,728
1,926
Nonhazardous waste
22
2,336
2,331
8
Nonproduction-specific waste
Nonhazardous waste
Hazardous waste
Waste for removal
The annual figures are based on a projection of the actual values recorded for January to October.
5,766
7,018
7,575
Total
876
1,105
2,348
1,511
79
174
114
Nonproduction-specific waste
3,651
3,717
3,846
Nonhazardous waste
2021
2022
2023
t
Metallic waste
851,880
800,799
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
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
Other sites³
Development sites2
0
0
0
0.24
0.22
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.
0.19
0.22
0.19
0.31
0.29
0.26
Leipzig
Stuttgart-Zuffenhausen
Production sites
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.
³ Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
2 The key figures refer exclusively to production processes, not to Porsche vehicles.
0.24
'Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
Volatile organic compounds (VOC)'
2023
2023
74,716
80,821
86,458
Others
112,697
120,658
125,745
Plastics
15,998
17,146
19,302
Material consumption of Porsche's vehicle production'
Copper
170,413
180,040
Alloys
603,259
241,883
263,617
267,061
Steel/cast iron
652,655
678,606
Total
2021
2022
157,965
2022
0
0
2023
t
0.16
0.12
0.12
Other sites
7.60
6.32
6.14
1,2
Dust emissions"
Development sites³
2022
8.11
4.36
25.88
20.41
17.85
Locations in Stuttgart-Zuffenhausen and Leipzig.
33.99
27.17
22.21
0.58
0.58
0.60
VOC
6.76
0
2021
³ Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
0.05
0.03
0.03
0.05
0.03
0.02
0.17
0.13
0.21
0.22
0.16
0.23
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.
0.27
0.26
Other sites*
Development sites³
Leipzig
Stuttgart-Zuffenhausen
Production sites
2021
2022
2023
SOx emissions'
* 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
0.19
2021
Material consumption of Porsche locations in Stuttgart-Zuffenhausen and Leipzig, and proportionately of the Volkswagen Group's production locations in Osnabrück
and Bratislava.
Total
49
124
79
12
167
590
550
5
6
4
Hazardous waste
Waste for removal
37
Metallic waste
Nonhazardous waste
Hazardous waste
Waste for recycling
705
2,604
3,031
3,060
Metallic waste
806
1,470
Nonproduction-specific waste
7,376
8,005
Nonproduction-specific waste
8,026
44
0
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
0
Nonproduction-specific waste
² Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
80
82
93
Nonhazardous waste
885
77
34
Hazardous waste
The annual figures are based on a projection of the actual values recorded for January to October.
Waste for removal
0
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.
Nonhazardous waste
4,481
5,001
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.
2 Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, Friolzheim.
Unless indicated otherwise, the annual figures are based on a projection of the actual values recorded for January to November.
0
0
0
0
0
0
70.48
75.56
82.10
Further information Nonfinancial key figures
52.81
55.65
123.29
129.40
137.75
123.29
129.40
137.75
Other sites³
Development sites²
Leipzig
Stuttgart-Zuffenhausen
Production sites
53.84
445
↑↓ ↑ 0 |||
446
5,333
Hazardous waste
Waste for recycling
16,143
17,018
18,199
340
712
615
Total
21,755
22,874
23,869
Other sites³
t
2021
2022
2023
Total
Production sites
Total
t
2021
2022
2023
Waste by location, type, and disposal method' (Fortsetzung]
Waste by location, type, and disposal method'
2022
2021
2023
Waste directed to disposal
16,241
Of which at Stuttgart-Zuffenhausen
21,217
21,761
23,211
Porsche AG
By company
34,297
36,688
39,247
2021
2022
15,509
2023
Full-time employees
452
↑↓ ↑ |||
451
Further information Nonfinancial key figures
For reasons of data protection, only selected personnel and social key figures are disclosed.
0.6
1.0
0.2
Other regions (Australia, Latin America)
5.1
4.2
Total
3.7
15,168
6,970
1,022
Of which at Stuttgart-Zuffenhausen
1,162
1,264
1,513
Porsche AG
2,699
2,474
2,893
2021
2022
2023
Of which at Weissach (including external locations)
By company
Part-time employees
By region
9,343
10,742
11,630
Other subsidiaries
3,737
4,185
4,406
Porsche Leipzig GmbH
6,049
6,252
Total
862
5.6
5.1
Male
Female
Breakdown by gender (%)
> 50 years
30-50 years
For reasons of data protection, only selected personnel and social key figures are disclosed.
0.0
0.0
0.0
Other'
81.6
81.2
Other'
80.8
18.4
18.8
19.2
Female
Breakdown of employees by gender (%)
0
6,808
30,188
0
1
31,814
34,042
7,348
Male
4.5
Breakdown by region (%)
Region: Europe (excluding Germany)
9.2
5.8
6.6
79.4
84.5
84.4
0.0
0.0
0.0
70.0
76.7
75.1
Region: Germany
30.0
24.9
3.5
2.4
3.6
55.1
48.0
53.7
41.4
49.6
42.7
Region: Asia
Region: North America
23.3
8,097
706
491
84.4
Male
68.5
Female
15.2
15.3
15.6
Female
Breakdown of employees by gender (%)
Breakdown of employees by gender (%)
0
0
84.7
0
721
911
1,595
1,753
1,982
Other'
Male
Female
0
0
1
5,213
29,084
1,104
31,093
84.8
31.5
36,095
38,952
2021
2022
2023
By company
Total
Permanent employees
454
↑ ↓ ↑ 0 |||
453
Further information Nonfinancial key figures
Male
1 For reasons of data protection, only selected personnel and social key figures are disclosed.
40.9
0.0
0.0
29.1
59.1
70.9
550
0.0
Other'
0.0
0.0
0.0
Other'
For reasons of data protection, only selected personnel and social key figures are disclosed.
Of which at Weissach (including external locations)
33,131
6,115
Region: North America
840
901
1,035
Region: North America
Region: Europe (excluding Germany)
1,518
1,919
2,084
Region: Europe (excluding Germany)
Region: Germany
30,576
Region: Asia
32,271
Region: Germany
By region
965
1,031
1,152
Other subsidiaries
572
m³
228
Porsche Leipzig GmbH
456
402
34,491
5,595
1,327
1,094
Other'
Male
Female
Number of employees by gender
Number of employees by gender
5
8
11
4
21
14
0
1,287
4
177
154
150
2,513
2,287
2,716
Other regions (Australia, Latin America)
269
310
310
Other regions (Australia, Latin America)
Region: Asia
2
Other¹
179
Female
81,831
133,846
140,127
100,074
Leipzig
Stuttgart-Zuffenhausen
Production sites
Total
2021
2022
2023
m³
118,546
Water withdrawal¹,2,3
2022
2023
m³
4.51
0.71
0.56
Total consumption of water from all areas'
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.
* Locations in Weissach, Rutesheim, Hemmingen, Filderstadt, Welcherath, Schwieberdingen, Wimsheim, and Friolzheim.
3 Stuttgart-Zuffenhausen and Leipzig.
2021
2022
2021
2023
112,454
63,078
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.
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.
1,660
2,945
3,214
Of which groundwater
0
0
0
55,328
Other sites³
793,416
790,471
745,093
741,879
Of which water from third parties
Total
21,392
21,581
18,243
Development sites²
39,944
55,468
26,503
72,510
758,443
756,783
m³/vehicle
Locations in Stuttgart-Zuffenhausen and Leipzig.
Waste from vehicle production sites'
79
35
Total
Water recirculation¹²
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.
0
0
0
758,443
758,443
793,416
793,416
745,093
745,093
916
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.
2021
2022
2023
2021
2022
2023
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
Male
288
339
Total withdrawal
Waste
'The annual figures are based on a projection of the actual values recorded for January to October.
Nonhazardous waste for removal'
The annual figures are based on a projection of the actual values recorded for January to October.
811
185
109
Total
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.
5,743
5,970
2,739
Other sites
2021
2022
m³
2023
78,366
80,310
Development sites*
624,597
539,785
653,289
568,953
558,756
Production sites³
641,805
Total
2021
2022
2023
79,069
Water consumption
kg/vehicle
2023
Region: North America
33,089
34,558
37,207
180
225
315
Region: Europe (excluding Germany)
Region: Germany
By region
1,553
3,284
173
4,012
10,308
11,773
12,782
Other subsidiaries
By region
4,309
4,364
4,634
Porsche Leipzig GmbH
0
0
1
Region: Germany
586
1,369
110
2,234
<30 years
Number of employees by gender
274
Locations in Stuttgart-Zuffenhausen and Leipzig.
318
321
Other regions (Australia, Latin America)
Breakdown by age (%)
1,098
1,308
1,341
Region: Asia
Region: Europe (excluding Germany)
12
10
Other regions (Australia, Latin America)
840
905
1,037
Region: North America
100
164
177
Region: Asia
1,695
2,073
40
2,982
243
904
23,025
24,724
Porsche AG
By company
36,996
39,162
42,140
Total
2021
2022
2023
2021
2022
2023
Number and distribution of new employees
Unless specified otherwise, the listed key figures relate to the Porsche AG Group.
PERSONNEL AND SOCIAL KEY FIGURES
450
↑ ↓ ↑ 0 |||
449
Further information Nonfinancial key figures
3.05
3,572
3.08
2.81
2021
2022
22,379
Of which at Stuttgart-Zuffenhausen
Total workforce
17,263
69
93
170
1,076
1,866
2,558
810
1,184
2,029
1,955
3,886
4,757
Other'
1,927
Female
By gender
> 50 years
By age
<30 years
30-50 years
Total
6,425
6,654
15,954
7,461
16,371
Male
Of which at Weissach (including external locations)
Number of audits of new direct suppliers of Porsche AG based on sustainability criteria'
32.0
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.
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.
37.0
61.3
Porsche Leipzig GmbH
54.2
45.2
Porsche AG
50.7
15.0
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).
Digital training module on the sustainability rating (S-rating) in the process of awarding contracts (cumulative).
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.
Further information Nonfinancial key figures
461
↑↓ ↑ 0 |||
462
KEY GOVERNANCE FIGURES
Internal sustainability training of Procurement employees at Porsche AG¹
Number of trained employees
Number of centralized compliance monitoring operations conducted
Operations of the Porsche AG Group assessed for significant risks
Proportionate scope in subsidiaries (%)
Number of subsidiaries covered by the Code of Conduct
57.5
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.
40.4
175
3.1
1,964
For production material
2,233
0
0
0
152
1,568
2,009
0
0
185
1,767
0
11
2.9
18
224
197
0
0
0
4.5
5.0
1.7
505
4.4
5.2
4.6
5.7
98
For nonproduction material²
100.0
100.0
2 No S-rating audits of direct suppliers of nonproduction materials were conducted in 2023.
4
2023
2022
2021
For production material
For nonproduction material
Based on an estimated sustainability rating (S-rating).
Direct suppliers of Porsche AG audited on the basis of sustainability criteria'
For production material
5
14
0
17
7
20
57
Based on an estimated sustainability rating (S-rating).
Structure of direct suppliers of Porsche AG
%
2023
2022
2021
100.0
100.0
100.0
100.0
2023
2022
2021
1,666
1,396
For nonproduction material
8
no data
96
Direct suppliers of Porsche AG audited on the basis of sustainability criteria'
%
Direct suppliers of Porsche AG where considerable actual and potential negative sustainability impacts were
identified'
2023
2022
2021
For production material
For nonproduction material
687
560
439
1
Based on an estimated sustainability rating (S-rating).
2023
2022
2021
30
2
4
2
8
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'
2023
2022
2021
%
93.2
96
93.2
no data
Based on an estimated sustainability rating (S-rating).
203
88.5
186
Total basic annual remuneration
Total direct remuneration
Basic annual remuneration for nonunion employees*
Direct remuneration for nonunion employees*
Basic annual remuneration for union employees
Direct remuneration for union employees
Proportions per age group
Women total
Men total
Female nonunion employees*
Male nonunion employees*
115
112
Remuneration of women compared to men
87
108
82
0
99
100
0
100
102
115
112
98
107
107
107
97
Accidents, lost days, and fatalities1
15
1,249
460
Employees by type of employment at Porsche AG and selected national subsidiaries
%
Employees subject to wage agreements
Employees exempt from wage agreements and executive employees
Comparison of the basic annual and direct remuneration of women and men in 20231,2,3
%
2023
2022
2021
88.4
88.4
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).
11.5
11.6
<30 years
30-50 years
> 50 years
Stoppages and lost days
2023
2022
2021
Stoppages'
Lost days
5
0
5
0
14
11.6
Accidents²
Lost days³
Fatalities
Disciplinary action due to cases of discrimination"
Total
Number of discrimination reports that resulted in termination
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
2023
2022
2021
11
7
6
2
0
0
1,2
1
0
4
7
7
6
1
0
0
1 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.
2023
2022
2021
0
Total accident severity
Porsche Leipzig GmbH
Total injury rate (%)
Porsche AG
Porsche AG
Accidents²
Lost days³
19
15
13
Fatalities
81
85
87
Porsche Leipzig GmbH
0
18
7
Accidents²
0
82
93
Lost days³
Female union employees
19
15
15
Fatalities
Male union employees
81
85
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.
171
2,225
19
1,360
1,766
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.
Porsche Strategy 2030
P
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
EURO STOXX 50
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.
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
Porsche whistleblower system
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.
The Porsche whistleblower system is a mechanism for reporting
possible breaches of the rules via internal and external channels.
Reports can be submitted via a 24-hour hotline, an online reporting
channel, ombudsmen, by email, by post, or in person, and are pro-
cessed impartially and confidentially.
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.
The percentage of leased or financed new vehicles in the deliveries
Penetration rate
The total cash and cash equivalents, securities, loans, and time
deposits.
Gross liquidity
The GHG Protocol is a series of globally standardized instruments
for systematically calculating, reporting, and reducing the green-
house gas emissions of companies or value chains, for example.
The calculation factors in emissions throughout the life cycle of
the product or in the entire field of activity. The GHG Protocol sorts
emissions into three categories: Scope 1 contains direct emissions,
Scope 2 contains indirect emissions from purchased electricity,
steam, and purchased heat and cooling, and Scope 3 contains the
emissions caused by the company's upstream and downstream
activities. The development of the GHG Protocol is coordinated by
the World Resources Institute (WRI) and the World Business Coun-
cil for Sustainable Development (WBCSD).
Greenhouse Gas (GHG) Protocol
The German Corporate Governance Code presents essential stat-
utory regulations for the management and supervision of German
listed companies and contains, in the form of recommendations and
suggestions, internationally and nationally acknowledged standards
for good and responsible corporate governance.
German Corporate Governance Code
The gender pay gap is the difference in the average remuneration
paid to women and men. It can be due to a wide range of different
factors.
Gender pay gap
G
Dow Jones Auto Index. An American stock market index that
encompasses the world's most important auto manufacturers.
DJ US Auto Index
"Deliveries to customers" is a metric that reflects the delivery of new
vehicles to end customers. These deliveries can be by Group com-
panies or free importers and dealers. This metric differs from sales
within the Porsche AG Group, which are a relevant driver of sales
revenue. Sales of new and Group-used Porsche-brand vehicles that
have left the Automotive segment for the first time are designated
as sales, unless a company in the Automotive segment is under a
legal obligation to take them back.
Deliveries to customers
As a key strategic indicator, the DKI helps selected companies of
the Volkswagen Group reduce their carbon footprint by providing a
transparent calculation. The DKI aims to map the average emis-
sions per vehicle all along the value chain (manufacture, use, and
recycling) in CO₂ equivalents as comprehensively as possible-from
the raw material mine to recycling, for instance. Among other
things, it is based on standardized life cycle analyses performed by
Porsche AG in accordance with ISO 14040/44.
Decarbonization Index (DKI)
The DAX (the abbreviated form of Deutscher Aktienindex) is the
most significant German stock market index. It measures the per-
formance of the 40 largest companies on the German stock market
and represents around 80 percent of the market capitalization of
listed stock corporations in Germany.
DAX
Porsche Production 4.0 is the latest stage in the development of
an automotive factory, featuring increased automation of individual
manufacturing stages and networked production and logistics by
means of cloud solutions and artificial intelligence. It is centered on
production planning, order management, shop floor management
for individual manufacturing stages, logistics management, and
vehicle delivery. Porsche production follows the three principles of
smart, lean, and green: "smart" describes flexible, intelligently net-
worked production featuring the latest technology, "lean" describes
a factory structure that is as efficient as possible with minimized
waste and handling, and "green" denotes the endeavor for better
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)
to customers in markets in the Financial Services segment.
Eco Management and Audit Scheme (EMAS)
EBITDA
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
20.7-18.8
665-784
516-613
0
21.1-17.9
387
584
430
285
Macan Turbo
Automotive net liquidity
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.
The total cash and cash equivalents, securities, loans, and time
deposits, less financial liabilities to third parties in the Automotive
segment.
Balance-sheet CO2-neutral
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.
Carbon footprint
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.
Capitalization ratio
19
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.
B
Macan 4
PHEV
Porsche AG
Publisher
476
LEGAL NOTICE
PORSCHE MUSEUM
DRIVEN
BY
DREAMS
R PORSCH
FERRY
PORSCHE SPORTWAGEN
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
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
June 07, 2024
70435 Stuttgart, Germany
Dr. Sebastian Rudolph
newsroom.porsche.com/reports
the accounting records contained in this document and those
released due to legal requirements.
Due to technical reasons, there can be deviations between
This annual and sustainability report is available in German and
English. In the case of any deviations, the German version of the
document shall take precedence over the English translation.
is merely for supplementary purposes and is exclusively for the
simplified access to information. The information contained
on the websites in question are not part of this annual and
sustainability report.
The annual and sustainability report (in print, online, and
in PDF format) uses notices and links to refer to websites
containing further information outside of this publication. This
This document contains statements concerning the future
that are based on the current assumptions and forecasts
of Dr. Ing. h.c. F. Porsche Aktiengesellschaft. Various known
and unknown risks, uncertainties, and other factors can
cause the actual results, financial situation and results of
operations, development, or performance of Dr. Ing. h.c. F.
Porsche Aktiengesellschaft and the Porsche AG Group to
deviate considerably from the estimates presented herein
(both positively and negatively). Porsche AG is under no
obligation-without prejudice to existing obligations under
capital market law-and does not have the view to update
statements concerning the future or correct them if the
development differs from the expected result.
Legal notice
Kirchhoff Consult AG, Hamburg, Germany
Design and realization
Sabrina Damme, Frank Scholtys (Magazine)
Florian Leissle (Supervisory Board);
Daniela Rathe, Marcus Braue, Maximilian Steiner (ESG);
Anna-Lena Hofsaess, Nadine Panzel (Investor Relations);
Marc Rother (Finance);
Gundula Maronde, Linda Hornung (Project lead);
Katrin Feiler, Falk Steinbach, Benedikt Mai,
Project team
investorrelations.porsche.com/en
capitalmarkets@porsche.de
Björn Scheib (Head of IR)
Investor Relations contact
Vice President Communications, Sustainability, and Politics
sebastian.rudolph@porsche.de
newsroom.porsche.com/en
Tel. +49 711 911-0
Plug-in hybrid vehicles
Quarterly information January to March 2024
Annual Media Conference and Analyst and Investor Conference 2024
Scalable Systems Platform (SSP)
SI
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.
Return on sales
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
account received). The average invested capital is derived from the
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.
Porsche Code
Dr. Ing. h.c. F. Porsche Aktiengesellschaft and its fully consolidated
subsidiaries. Porsche AG is the parent company of the Porsche AG
Group.
Porsche AG Group
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
The Scalable Systems Platform (SSP) is a cutting-edge mecha-
tronics platform for all-electric vehicles. It is being developed by the
Porsche, Audi, and Volkswagen brands as well as CARIAD for the
software architecture. The high-performance version (SSP Sport), in
particular, is expected to support Porsche BEVS in the longer term.
April 29, 2024
Science Based Targets Initiative (SBTi)
Secondary raw materials
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
aims to build a sustainable, more inclusive economy for all. It wants
to initiate change processes within companies and has a code of
conduct for companies with ten universal sustainability principles,
especially relating to human rights, labor standards, environmental
protection, and corruption prevention. Companies that take part
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
Ratio of income tax to profit before tax.
Tax rate
Task Force on Climate-Related Financial Disclosures (TCFD)
The Task Force on Climate-Related Financial Disclosures (TCFD) is
an industry-led working group established by the Financial Stability
Board (FSB). The task force helps companies understand and com-
municate the impacts of climate risks and opportunities on their
finances. The TCFD Recommendations Report provides companies
with clear recommendations on voluntary, consistent reporting of
climate-related financial disclosures. The purpose of this infor-
mation is to enable creditors and insurers to assess and evaluate
climate-related risks and opportunities appropriately.
T
Stoxx Europe 600 Automobiles & Parts. A European stock market
index comprising manufacturers and suppliers in the automotive
industry.
SXAP
The Sustainable Development Goals are 17 sustainability goals
defined by the United Nations (UN). The SDGs aim to contribute
to the global promotion of sustainable development in the three
dimensions of sustainable development: the economic, social, and
environmental. The goals apply to all nations and are meant to be
achieved by 2030.
Sustainable Development Goals (SDGs)
The Supply Chain Due Diligence Act governs corporate responsibil-
ity for respecting human rights in global supply chains.
Supply Chain Due Diligence Act (LkSG)
Materials that are obtained from a recycling process. See recyclates.
The Science Based Targets Initiative was born from an alliance of
environmental and climate protection organizations with a view to
providing businesses with a framework and sector-specific target
paths and in turn the opportunity to align the science-based reduc-
tion of greenhouse gases with international climate targets (such as
the Paris Agreement).
Macan
673-699
538-555
[km]
urban
[km]
[g/km]
Electric range
Electric range
combined
CO₂
emissions
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
71-72
GLOSSARY
43-40
Taycan
300
380
Taycan 4S with Performance battery Plus
528-617
474-557
0
20.7-17.7
462
340
Taycan 4S
719-821
579-678
0
20.0-17.1
435
320
Taycan with Performance battery Plus
569-662
503-590
0
19.7-16.7
408
Taycan
517
31.1-30.2
739
Cayenne S E-Hybrid Coupé
303-282
13.4-12.4
474
349
Cayenne S
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
76-82
70-73
382
1.9-1.8
519
260
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
71-78
39-31
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
Cayenne Coupé
20.9-17.8
0
549-642
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
520
Taycan Sport Turismo with Performance battery Plus
707
0
0
21.3-20.6
789
580
Taycan Turbo GT with Weissach package
638-677
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
590-672
528-606
21.6-18.8
553-650
477-565
0
0
22.0-18.7
435
320
Taycan 4 Cross Turismo
612-691
558-630
0
20.5-17.9
775
570
Taycan Turbo S
607-683
557-630
0
20.5-18.0
707
520
Taycan Turbo
A
607-705
517-613
588-693
Taycan 4S Cross Turismo
380
408 20.6-17.6
300
Taycan Sport Turismo
589-675
516-596
0
22.0-19.1
775
570
Taycan Turbo S Cross Turismo
1,751
585-668
0
22.0-19.1
707
520
Taycan Turbo Cross Turismo
588-690
517-610
0
22.0-18.8
517
515-597
45-39
305
13.2
265
195
Macan
83-92
78-90
33-24
1.4-1.1 28.6-25.9
544
10.7-10.1
400
Macan
86-95
79-92
32-23
1.4-1.0 27.8-25.9
470
346
Panamera 4 E-Hybrid Executive
Panamera 4S E-Hybrid
89-96
243-228
500
324
Macan GTS
Cayenne
265-251
11.7-11.1
380
280
Macan S
Panamera Turbo E-Hybrid
242-229
265
195
Macan T
83-93
76-91
38-26
1.7-1.2 29.9-27.5
680
10.7-10.1
440
79-93
1.4-1.0 27.6-25.3
weighted
Electric range
CO₂ emissions
Power
consumption
weighted
combined
[kWh/100 km]
[1/100 km]
[PS]'
[kW]
combined
Electric range
Power
weighted
Power
consumption
Fuel
WLTP
Model
CO₂ emissions
combined
[g/km]
Plug-in hybrids
output
32-22
urban
247-230
299
470
346
Panamera 4 E-Hybrid
253-230
11.2-10.1
353
260
Panamera 4
combined
Panamera
10.5-9.6
353
260
Panamera
Panamera
[km]
(EAER city)
(EAER)
[km]
239-219
11.7-11.3
265-255
Cayenne E-Hybrid
23.0
35.5
31.7
Based on direct suppliers awarded contracts through the central procurement systems.
2 Based on the total number of direct suppliers.
Further information Nonfinancial key figures
↑↓ ↑ 0 |||
463
For nonproduction material
464
Internal combustion engine vehicles
Model
WLTP
Power
Fuel consumption
output
Power
combined
EMISSION AND CONSUMPTION INFORMATION
CO₂ emissions
combined
100.0
100.0
2023
2022
2021
2023
2022
2021
Share of local direct suppliers from the EU in the total procurement volume'
Share of local direct suppliers of production material from the EU²
93.0
100.0
96.0
91.1
95.2
96.4
Share of local direct suppliers of nonproduction material from the EU²
Based on procurement volume.
97.4
99.0
99.2
For production material
97.0
[kW]
[PS]
[1/100 km]
2.0-1.7 31.7-29.9
739
544
Cayenne Turbo E-Hybrid
Cayenne
79-90
71-78
39-31
500
1.7-1.4 31.7-29.1
382
Cayenne S E-Hybrid
77-90
66-74
42-33
1.8-1.5 30.8-28.7
470
346
519
368
718 Cayman GT4 RS
10.9-10.1
[g/km]
718 Cayman
718 Cayman
220
300
9.7-8.9
220-201
718 Cayman Style Edition
220
300
9.7-8.9
718 Cayman S
257
350
10.3-9.6
219-202
235-217
718 Cayman GTS 4.0
294
400
[1/100 km]
combined
[g/km]
WLTP
For further information on the differences between the WLTP
and NEDC, please visit https://www.porsche.com/wltp.
911
911 Carrera
911 Carrera T
283
385
10.8-10.3
245-233
Fuel consumption
283
10.9-10.3
247-233
911 Carrera Cabriolet
283
385
10.8-10.4
245-236
911 Carrera 4
385
283
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.
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.
353
911 Carrera 4 GTS Cabriolet
259-240
11.4-10.6
480
353
911 Carrera 4 GTS
CO₂ emissions
combined
[g/km]
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
combined
[1/100 km]
Power
[PS]
Power
output
[kW]
Model
256-239
11.3-10.5
480
353
911 Carrera GTS Cabriolet
Fuel consumption
480
385
247-234
911 Carrera GTS
WLTP
252-236
11.1-10.4
450
331
911 Targa 4S
Internal combustion engine vehicles
353
247-238
385
283
911 Targa 4
252-235
11.1-10.4
450
331
911 Carrera 4S Cabriolet
10.9-10.5
10.9-10.3
480
258-236
911 Carrera 4 Cabriolet
283
385
10.8-10.5
246-237
911 Carrera S
331
450
11.4-10.4
11.1-10.1
911 Carrera S Cabriolet
331
450
11.0-10.3
250-233
911 Carrera 4S
331
450
251-229
253-231
11.3-10.8
911 Targa 4 GTS
386
911 GT3 RS
293-292
12.9
510
375
911 GT3 with Touring Package (PDK)
294
525
13.0
368
718 Spyder RS
294-293
13.0-12.9
510
375
911 GT3
247-230
500
10.9-10.1
13.4
353
[PS]
Power
Power
output
[kW]
Model
Internal combustion engine vehicles
466
↑↓ ↑ 0 |||
465
911 Dakar
Further information Emission and consumption information
313
13.8
525
386
911 S/T
256
11.3
480
As of February 22, 2024. Current consumption values can be found at https://www.porsche.com/international/fuel-consumption.
256-244
400
718 Boxster GTS 4.0
580
427
911 Turbo Cabriolet
220-201
9.7-8.9
300
220
718 Boxster
12.5-12.1
279-271
580
427
911 Turbo
718 Boxster
257-245
11.3-10.8
480
353
12.3-12.0
284-275
718 Boxster Style Edition
220
284-275
12.5-12.1
650
478
911 Turbo S Cabriolet
235-218
10.4-9.6
350
294
257
278-271
12.3-12.0
650
478
911 Turbo S
220-203
9.7-9.0
300
718 Boxster S
11.1-10.2
As of 1974, "turbo" became a byword for Porsche. The first 911 Turbo would turn the luxury sports car class upside down for good
20
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
The Porsche 911 Turbo (997)
with VTG turbocharger took turbo
technology to a new level
Through this groundbreaking
achievement, Porsche
impressively underlined
its pioneering role in turbo
technology once again.
Frank-Steffen Walliser,
Vice President Model Lines 911 and 718 (2019-2022)
Fit for the future: the ultra-sporty hybrid makes the six-cylinder even faster and more efficient
The high-performance
hybrid seamlessly
continues innovative
development of the
911 drive.
Frank Moser, Vice President Model Lines 911 and 718
A variable-geometry turbocharger opened up a potential power output of 515 kW (700 PS)
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."
Whether engines or transmissions, some
developments required time to mature. In
the 1980s, Porsche built the first dual-clutch
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 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.
20
24
Milestones Drive System
59
06
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.
20
58
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.
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.
Milestones Drive System
55
56
99
With the switch from air to water cooling, the six-cylinder broke with tradition-and set new technical benchmarks
The switch from air
to water cooling was
our ticket to the new
technology.
August Achleitner,
Vice President Model Line 911 (2001-2018)
"That was our ticket to the new technology," recalls
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.
With an increase in power and
lower fuel consumption, the 996-
generation of the 911 was a hit
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20
use. With its displacement increased to
three liters, the Turbo engine was aspirated
pressure on the competition
Maurice van de Weerd, Manager of Driving Dynamics
for SUVS/Sedans, Weissach
42
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
Milestones Streamlining
43
Team Spirit
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.
44
090
OCO
In other words, there is no finish line. Porsche
is following a straight line to the future of all-
electric mobility-without compromise.
45
combining traditional and digital worlds
46
F
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
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."
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.
Michael Steiner, who has been with the
company since 2002, took charge of the
Research and Development department in
The experiences that
customers have in other
environments, they also
want to have in their cars.
Michael Steiner, Member of the Executive Board responsible for
Research and Development
which is to design the sports car of the future while
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】
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.
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
The Integrated Power
Box is like a tiny house
for important energy
components. We have
applied for a patent for
the compact box.
Tomas Gajdos, Project Manager for Premium Platform Electric
(PPE), Macan Model Line, Hemmingen
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.
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.
Good things often come in small packages.
"We've developed new ultra-lightweight,
streamlined solutions," says project engineer
40
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.
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.
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
a high-voltage booster, which in turn reduces
weight and frees up space.
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
Curke
S&GO 707E
Milestones Streamlining
With innovations in battery and
charging technology, the Macan is
ready for flexible travel
41
The new Macan demonstrates its
outstanding dynamic driving characteristics
on the Weissach test track
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."
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.
Sajjad Khan (left) and Michael Steiner share a vision,
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."
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911 S/T: Fuel consumption combined (WLTP) 13.8 l/100 km, CO₂ emissions combined (WLTP) 313 g/km
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.
51
52
59
19
63
Compact, smooth and free-revving, the first Porsche six-cylinder engine was a sports car engine par excellence
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."
911 with six-cylinder boxer engine
and rear-wheel drive
Porsche laid the foundation for its icon in 1963, when
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
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.
Milestones Drive System
53
174
54
PORSCH
The powerful, high-performance engine of
the first Porsche 911 Turbo quite literally put
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20
23
The concept of a career: the original
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."
Drive System
Milestones Team Spirit
47
"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.
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.
"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
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.
Sajjad Khan and Michael Steiner both agree
that tradition and progress are inextricably
linked at Porsche, as are continuity and
innovation.
We're expanding our
traditional virtues and
abilities to include
innovations from the
digital world.
Big Data
Sajjad Khan, Member of the Executive Board responsible for Car-IT
Past data
volume
Source: Porsche Engineering
x10
New data volume
48
x800
New data volume including data
for modern driver assistance and
safety systems
49
Milestones Team Spirit
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.
It was also the genesis of my passion for
Porsche. I too wanted to drive a car like that at
some point.
to reminisce about?
an air-cooled engine. It was a wonderful car.
My brother had a silver 993 Carrera 2 with
Is there a childhood dream you like
Andreas Haffner
Barbara Frenkel
9000
What dream have you fulfilled?
71
Member of the Executive Board
responsible for Procurement
I am living my dreams, I have a happy family,
find me in a Linden Green 911 Turbo S
Cabriolet. Even simply starting the engine
is an experience!
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.
What does that mean to you?
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.
What is your dream car?
I have always been fascinated by the 911.
I drive one to this day. At the moment you'll
To our shareholders Members of the Executive Board
and I am healthy. Professionally, I have always
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.
Oct. 25, 2023
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.
Member of the Executive Board
responsible for Human Resources
and Social Affairs
What dream have you fulfilled?
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.
Teamwork makes the dream work.
What does that mean to you?
It's all about people!
What is your dream car?
What is your dream car?
My old black Beetle ... and my 911 R.
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
Lutz Meschke
Is there a childhood dream you like
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
After I watched the moon landing on TV in
1969, I was desperate to be an astronaut and
explore other planets.
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.
What is your dream car?
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
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 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.
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.
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
To be able to fly and travel the world.
75
To our shareholders Members of the Executive Board
Albrecht Reimold
Member of the Executive Board
responsible for Production and Logistics
Is there a childhood dream you like
Teamwork makes the dream work.
What does that mean to you?
team to put us in pole position when it
comes to software.
I want to work with the global Porsche
yet to realize?
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
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
to reminisce about?
To our shareholders Members of the Executive Board
Sajjad Khan
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
73
Is there a childhood dream you like to
reminisce about?
87
Dr. Oliver Blume
62
42
Milestones Change
63
64
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
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.
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.
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.
Milestones Change
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356 "No.1" Roadster
PORSCHE
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
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.
"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
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.
CH
AN
AG
INE
GE
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.
61
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.
"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.
We're creating
the conditions
to secure jobs
over the long
term.
TO OUR SHAREHOLDERS
Andreas Haffner,
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
as drivers of innovation
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.
Member of the Executive Board
responsible for Human Resources
and Social Affairs
Chairman of the Executive Board
68
69
33
S.GO 7058
Bold thinking and decisive action: the members of the Porsche Executive Board (from left to right) with the all-electric Macan
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
69
↑↓ ↑ ||
70
75
1948
2023
Every success story
begins with a dream...
The Executive Board of Dr. Ing. h.c. F. Porsche AG
With warmest regards,
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.
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.
MEMBERS OF THE EXECUTIVE BOARD
78
PORSCHE IN THE CAPITAL MARKET
80
REPORT OF THE SUPERVISORY BOARD
to reminisce about?
MEMBERS OF THE SUPERVISORY BOARD
67
↑↓ ↑ ||
68
LETTER FROM THE EXECUTIVE BOARD
LETTER FROM THE EXECUTIVE BOARD
MEMBERS OF THE EXECUTIVE BOARD
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.
Dear Sir or Madam,
Sep. 22, 2023
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.
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.
Type of
transaction
Function
Name
Luxury Peers
NOTIFICATION OF DIRECTORS' DEALINGS IN ACCORDANCE WITH ARTICLE 19 OF THE
MARKET ABUSE REGULATION (MAR)
SXAP
DAX
The luxury peers include: Burberry, Brunello Cucinelli, Salvatore Ferragamo, Ferrari, Hermès, Kering, LVMH, Moncler, Prada, Richemont.
December 29, 2023
June 15, 2023
January 02, 2023
80
90
100
110
28
120
78
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.
Aggregated
volume in €
DIALOG WITH THE CAPITAL MARKET
Price in €
Porsche AG
What dream have you fulfilled?
91.94
85.98
79
↑ ↓ ↑ 0 |||
To our shareholders Porsche in the capital market
Nov. 28, 2023
82.96
8,296.00
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
Lutz Meschke
Date
Volkswagen AG indirectly holds its shares via Porsche Holding Stuttgart GmbH
249,162.46
8,598.00
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.
What is your dream car?
Dreams are made a reality by strong
teams that goes for motorsport and
vehicle projects alike.
What does that mean to you?
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?
I realized my first major dream with a
BMW R80G/S. It was my pride and joy and
my freedom.
What dream have you fulfilled?
My happiest childhood dreams revolved
around sporting successes and fast means
of travel.
Is there a childhood dream you like to
reminisce about?
Member of the Executive Board
responsible for Research and Development
Dr. Michael Steiner
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!
What is your dream car?
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!
To quote the star basketball trainer
Teamwork makes the dream work.
What does that mean to you?
75.4%
Volkswagen AG'
Do you have a dream that you have yet to
realize?
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
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.
77
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
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.
ANNUAL GENERAL MEETING
2023
and private
investors
AWARD-WINNING IPO
Porsche Automobil
Holding SE
12.5%
Shareholder composition as of December 31, 2023
(as percentage of share capital)
12.1%
Institutional
SHAREHOLDER COMPOSITION
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.
130
Index 100
Stock price development in 2023
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 AND OVERALL MARKET
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).
To our shareholders Members of the Executive Board
PORSCHE IN THE CAPITAL MARKET
Dr. Ferdinand Oliver Porsche
4 of 4
100%
100%
4 of 4
4 of 4
100%
Dr. Hans Peter Schützinger
75%
100%
100%
Hans Dieter Pötsch
100%
4 of 4
Dr. Hans Michel Piëch
100%
4 of 4
Melissa Di Donato Roos
For details concerning fuel consumption, electricity consumption, and CO₂ emissions, see pages 464-468.
4 of 4
100%
4 of 4
Micaela le Divelec Lemmi
3 of 4
To our shareholders Report of the Supervisory Board
in %
↑↓ ↑ 0 |||
100%
4 of 4
100%
8 of 8
100%
4 of 4
4 of 4
100%
4 of 4
Ibrahim Aslan
100%
81
8 of 8
4 of 4
Attendance
in %
Audit Com-
mittee
Attendance
in %
Presidential
Committee
Plenum
Attendance
Committee meetings
Supervisory Board meetings
Hauke Stars
82
100%
Harald Buck
mittee
4 of 4
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.
Wolfgang von Dühren
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
Dr. Christian Dahlheim
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%
100%
100%
4 of 4
Dr. Wolfgang Porsche (Chairman)
in %
in %
Attendance
Audit Com-
Attendance
Presidential
Committee
Attendance
in %
Plenum
8 of 8
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.
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.
Akan Isik
- Hauke Stars
Micaela le Divelec Lemmi
- Dr. Hans Michel Piëch
Members of the 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.
Related Party Committee
- Harald Buck
-Jordana Vogiatzi
Hauke Stars
Dr. Wolfgang Porsche (Chairman)
Members of the Mediation Committee:
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.
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:
Wolfgang von Dühren
- Akan Isik
FREQUENCY OF MEETINGS AND FOCAL POINTS
OF THE COMMITTEES
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.
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.
ACKNOWLEDGMENT
No conflicts of interest on the part of members of the
Supervisory Board were reported or became evident in the
reporting year.
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.
CONFLICTS OF INTEREST AND HOW THEY
ARE HANDLED
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.
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.
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.
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.
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.
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.
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."
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.
86
100%
Audit Committee
Harald Buck
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
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
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.
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.
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
-Jordana Vogiatzi
-Hauke Stars
- Dr. Arno Antlitz
- Dr. Wolfgang Porsche (Chairman)
Members of the Presidential Committee:
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
Carsten Schumacher
↑↓ ↑ 0 |||
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.
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
83
4 of 4
12 Equal treatment and opportunities
within the own workforce
99
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.
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
Strategy field
Governance and Transparency
The Porsche AG Group sees acting and doing business with
integrity as an essential foundation for all business activi-
ties. In the strategy field of governance and transparency, the
Porsche AG Group is therefore working continuously to increase
transparency and responsible corporate governance.
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,
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.
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
Porsche stakeholders
The most important stakeholders of the
Porsche AG Group as determined by internal
analyses.
Residents and
communities
Customers and busi-
ness partners
Employees
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.
PORSCHE
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.
Strategy field
Circular economy
Diversity
Partner to society
Supply chain responsibility
Governance and transparency
'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.
Supply Chain Responsibility
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.
91
↑↓ ↑ 0 |||
92
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.
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.
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.
Sustainability Sustainability at Porsche
'Within the Porsche AG Group, only Porsche AG procures production materials.
Scientific community
and experts
EO
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
Christophorus
Online newsroom
Social media channels
the Porsche magazine
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 platform for journalists
and fans
9:11 Magazine
the web-based TV channel
Instagram, Facebook, X, LinkedIn
O-
B
09:11. Porsche. Podcast
(▷)
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 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.
Competitors
Investors and
analysts
NGOs/nonprofit
organizations
Media
22
Policymakers and
associations
↑ ↓ ↑ 0 |||
Sustainability Sustainability at Porsche
93
94
STAKEHOLDER DIALOG AND MATERIALITY
Stakeholders of the Porsche AG Group
→ GRI 3-1
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.
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.
Stakeholder communications and dialog
Decarbonization
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
104 Energy and climate change adaptation
108
110
111
Pollution and substances of concern
Water and marine resources
101 Environmental management
Biodiversity and ecosystems
112
Waste
SOCIAL
115
Partner to society
119 Working conditions for own workforce
115
ENVIRONMENT
101
Stakeholder dialog and materiality
MEMBERS OF THE SUPERVISORY BOARD
The Supervisory Board 2023 of Porsche AG
From left to right:
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
87
↑↓ ↑ ||
88
19
56
550 Spyder
SUSTAINABILITY
90
SUSTAINABILITY AT PORSCHE
90 Strategy fields
94
126
the audio format
127
129
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.
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.
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.
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
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.
Decarbonization
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.
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.
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.
Strategy field
Diversity
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.
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.
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
Furthermore, the strategy field encompasses recycling projects
Strategy field
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
GOVERNANCE
129 Management of relationships with suppliers including payment practices
131
Political engagement and lobbying activities
89
↑↓ ↑ ||
90
SUSTAINABILITY AT PORSCHE
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.
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.
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.
The Sustainability Strategy 2030 sums up the key challenges
facing the Porsche AG Group in six strategy fields.
CO₂
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.
Economic, social, and cultural rights as well as civil and political rights of communities
Personal safety of consumers and/or end users
↑ ↓ ↑ 0 |||
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.
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.
and opportunities
● Environmental
Social
Governance
1 Energy
p. 104
Material in terms of financial risks
2 Climate change adaptation
11 Working conditions for own
workforce
p. 119
20 Corporate governance, corruption
and bribery
p. 250
3 Climate change mitigation
p. 228
p. 104
4 Pollution of air, water, soil
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).
The sole purpose of the syndicated revolving credit facility is to
bolster Porsche's liquidity further. → EU taxonomy
13
14
3
20
Materiality of the financial risks and opportunities ("outside-in" perspective)
9
Government grants
Material from both
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.
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.
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.
This was further underlined in 2023 by the sustainability com-
ponent in the new syndicated revolving credit facility of €2.5
billion.
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.
perspectives
p. 241
p. 108
21 Political engagement and lobbying
activities
10 Waste
p. 233
15 Communities' rights
p. 126
p. 112
16 Personal safety of consumers
9 Circular economy
p. 127
17 Work-related rights of own workforce
18 Particular rights of indigenous
communities
19 Social inclusion of consumers
and/or end users
Sustainability Sustainability at Porsche
and/or end users
opportunities in the value chain
p. 111
rights and equal treatment and
p. 131
5 Substances of concern
p. 108
13 Information-related impacts for
p. 246
consumers and/or end users
6 Water
p. 110
14 Sustainability, work-related
7 Marine resources
8 Biodiversity and ecosystems
p. 236
22 Management of relationships
with suppliers including payment
practices
p. 129
p. 110
19
5
18
21
> Value Balancing Alliance
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
its commitment to the UN Global Compact's ten principles
of corporate sustainability by joining the UN Global Compact
Network Germany.
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.
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.
Stakeholder survey
> WIN Charter for sustainable business
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.
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.
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.
Stakeholder management-a holistic approach
Standardization
Standardization with guidelines
and codes
Consultation
Dialog options for communication
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.
> German Business Ethics Network
> German Environmental Management Association
UN Global Compact
Acceptance communication and
complaints management
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.
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.
Sustainability Sustainability at Porsche
95
↑↓ ↑ ||
96
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.
Stakeholders can contact the department responsible for
sustainability directly using the email address sustainability@
porsche.de.
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.
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.
Memberships and networks
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.
List of associations
>
and interest-sharing
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.
Cooperation
Materiality
98
Materiality of the impact on the environment and society ("inside-out" perspective)
17
10
Materiality matrix
Material in terms of impacts on
↑↓ ↑ |||
the environment and society
15
16
22
8
(11)
12
Immaterial from both
perspectives
46
97
Sustainability Sustainability at Porsche
→ GRI 3-1
Documentation and communication
Planning and controlling
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.
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.
Evaluation
Systematic documentation and evaluation
of stakeholder interests (e.g. materiality
assessment]
Strategy
Derivation of strategic measures and targets
in accordance with the corporate strategy
Participation
Codetermination and influencing across vari-
ous channels (e.g. Sustainability Council]
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:
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.
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 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.
Trusting cooperation with partner
programs, memberships, and
multistakeholder initiatives
CO₂
↑ ↓ ↑ 0 |||
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.
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.
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
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
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 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).
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.
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).
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.
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.
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.
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
Decarbonization program
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.
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.
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
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 Index (DCI) has been an effective reporting
and control instrument for the measures of the decarbonization
program since 2019. → Climate change mitigation
Measures to accomplish environmental
and climate objectives
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.
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
FACTORY
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
Environmental compliance: guidelines
and responsibilities
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.
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.
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 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.
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.
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.
Electrification as a key strategy
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.
Certifications
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.
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.
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.
Sustainability Environment
103
104
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.
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.
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.
ZERO IMPACT
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.
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.
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
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.
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.
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
management
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.
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.
Since 2017, the electricity used by the production
location in Stuttgart-Zuffenhausen has been
generated exclusively from renewable sources.
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.
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.
Sustainability Environment
107
↑ ↓ ↑ 0 |||
108
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
Inclusion in the annual financial statements
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.
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
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.
Sustainability Environment
105
↑↓ ↑ 0 |||
106
Selected efficiency improvements in the new generation of the Porsche Taycan
Energy recuperation: regenerative
braking-up to 400 kW
Efficiency-optimized drive
power distribution
Heat pump for interior
air conditioning
>80%
Aerodynamically optimized wheels
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.
Vehicle efficiency
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.
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.
Ride height control with
air suspension
Adaptive rear spoiler
Higher-efficiency drives with
optimized control
Vehicle efficiency with the Porsche Taycan
as an example
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%'.
and tires
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).
VISION OF THE
Mobility
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
118
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.
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.
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".
PORSCHE LATIN AMERICA: UN TECHO
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.
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
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.
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%.
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.
-45%
reduction in the environmental
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).
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
EMERGENCY AID FOR EARTHQUAKE VICTIMS
IN TURKEY AND SYRIA
↑↓ ↑ ||
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-
+48%
waste for removal per vehicle manu-
factured by Porsche AG and Porsche
Leipzig GmbH.
-75%
impact of Porsche's in-house vehicle
production from 2014 to 2025.
101
Water
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.
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
Sustainability Social
119
↑ ↓ ↑ 0 |||
2
3
4
Environmental
compliance
Architecture and
perception
Planning
8
Soil
7
Materials
6
5
Energy and CO2
9
10
11
Biodiversity
Pollutants
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.
Social engagement in sport
In the year under review, Porsche AG also intensified its social
engagement in sport with new and existing initiatives.
BIRDIES 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.
ACES FOR CHARITY
"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.
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.
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.
PORSCHE KIDS DAYS
GOALS FOR CHARITY
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 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,
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.
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.
WORKING CONDITIONS FOR OWN WORKFORCE
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.
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.
OCCUPATIONAL HEALTH AND SAFETY
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.
Digitalization
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.
POLLUTION AND SUBSTANCES OF CONCERN
donated by the Porsche AG Group as
part of long-term corporate citizen-
ship objects.
funding projects around the world
supported by the Porsche AG Group
as part of its "Partner to society"
sustainability strategy field.
ENVIRONMENT
€10m
budget for employee training as part
of a sustainable and socially ethical
transformation.
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
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.
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.
Support: frameworks and core areas
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.
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.
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 following sections present individual initiatives as part of
the Porsche AG Group's social commitment in more detail.
Anniversary initiatives for 75 Years of
Porsche Sports Cars
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 FUNDRAISER
>€11m >150
SOCIAL
SOCIAL
GOVERNANCE
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.
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.
Five-tier waste hierarchy
Prevention
Other
Preparation
for reuse
Recycling
Removal
uses
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.
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
The impact points methodology is used to identify and assess
the impacts of waste. → Environmental management
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.
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.
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
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.
Sustainability Environment
113
↑↓ ↑ 0 |||
114
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
5. Disposal
Except for the "Turbo for Talent" youth development initiative.
115
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.
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 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.
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.
PROMOTION OF LITERACY
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.
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.
Aid initiatives for Ukraine
In the reporting year, Porsche AG once again ran a wide range of
initiatives to support people affected by the current situation in
Ukraine.
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.
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.
Social activities around the world
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.
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.
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.
JOIN THE PORSCHE RIDE
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.
Sustainability Social
117
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.
PORSCHE HILFT
Social activities in Germany
"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.
↑↓ ↑ ||
116
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.
MAKE-A-WISH
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.
RACING FOR CHARITY
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.
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.
"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.
Sustainability Social
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.
Mio. €
2023
2022
2021
11.7
22.1
11.8
The disclosure contains all donations made by Porsche AG as well as donations
of more than €5,000 made by fully consolidated subsidiaries.
DRINKING WATER FOREST
Donations made by the Porsche AG Group'
These considerations did not identify any significant impacts on
these consolidated financial statements.
4. Recovery (such as energy generation)
2. Treatment for reuse
~33 g/m²
At Paint Shop II in Stuttgart-Zuffenhausen,
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.
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
Soil protection
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.
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.
Substances of concern
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.
Sustainability Environment
109
↑ ↓ ↑ 0 |||
110
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.
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.
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.
WATER AND MARINE RESOURCES
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.
↓ 25%
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.
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.
→ Environmental management, → Energy and climate change adaptation
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
wastewater. To further promote the use of sustainable materials,
Porsche AG has defined criteria that materials have to meet.
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.
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.
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
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
Air emissions
Since 2014, the company has reduced the water
consumption per vehicle produced of its own.
production activities by more than 25%.
In addition to reducing greenhouse gas emissions, the
Porsche AG Group endeavors to reduce other air emissions.
→ Energy and climate change adaptation
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
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.
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
Alongside the efficient use of water, the Porsche AG Group
primarily focuses on minimizing pollution in effluents and
on greater soil and groundwater protection when potentially
water-polluting substances are used to handle water and marine
resources responsibly.
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.
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.
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.
3. Recycling
Examples of this include using water efficiently based on
circulation systems and the careful handling of contaminated
wastewater from vehicle production.
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 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.
Sustainability Environment
111
↑↓ ↑ ||
112
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.
Biodiversity in Leipzig
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.
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.
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.
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.
Biodiversity at the Development Center
in Weissach
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
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.
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.
WASTE
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.
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
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
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.
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.
The Porsche AG Group does not have a direct impact on marine
resources, which is to say biodiversity and ecosystems in or
under water.
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
Water stress and water scarcity
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.
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
water stress.
Water and effluents
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
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.
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.
Protection of water-handling of
water-polluting substances
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.
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.
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.
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 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.
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.
BIODIVERSITY AND ECOSYSTEMS
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.
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.
Alongside the efficient use of water, the Porsche AG Group
primarily focuses on minimizing pollution in effluents and
> 1
↑↓ ↑ 0 |||
Occupational health and safety management
and organization
131
Sustainability Governance
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.
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 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.
Dialog with politics
↑ ↓ ↑ 0 |||
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.
POLITICAL ENGAGEMENT AND LOBBYING
ACTIVITIES
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.
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.
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.
Transparent payment processes
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
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.
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
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.
Involvement in associations
134
|| ↑ I
SMA 426E
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.
132
> Stifterverband (an organization dedicated to education,
science, and innovation)
> The Industry Association of Baden-Württemberg (LVI)
> American Chamber of Commerce in Germany e. V.
(AmCham Germany)
> Leipzig Chamber of Commerce and Industry (IHK)
> Chamber of Commerce and Industry of the
Stuttgart Region (IHK)
> Südwestmetall (Baden-Württemberg employers' association
for the metal and electrical industry)
> German Association of the Automotive Industry (VDA)
The Porsche AG Group is a member of the following associations
(selection below):
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.
2030 target
100
90
88.3
2023
In turn, all three pillars are geared towards three courses of
action:
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.
Ambitious internal objectives
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
- 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
CO₂
19
Decarbonization:
Circular economy:
0
%
Degree of fulfillment of the highest quality standards based on
purchasing volume of Porsche AG
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.
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.
Sustainability rating for direct suppliers
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.
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
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.
Sustainability criteria in new contracts
The Porsche AG Group adheres to strict sustainability criteria
when it awards new contracts.
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.
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.
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.
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
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
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
ARBEIT UND
63
CORPORATE GOVERNANCE
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
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.
https://investorrelations.porsche.com/en/corporate-governance.
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
EXECUTIVE BOARD
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.
a tie, the Chairman of the Executive Board casts the deciding
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.
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:
c) IPO bonus (G.6 and G.10 sentence 2 of the Code)
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.
138
↑↓ ↑ |||
137
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.
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.
139
Corporate Governance Corporate Governance Declaration
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
- The Executive Board should also have a sufficient mix
of ages.
a woman.
- At least one Executive Board position should be held by
-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.
- 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.
- Members of the Executive Board should-if possible-have
experience based on different training and professional
backgrounds.
Members of the Executive Board should have many years of
management experience.
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:
Diversity Concept and Succession Planning for the
Executive Board
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.
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.
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.
Corporate Governance Corporate Governance Declaration
136
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
b) Peer group disclosure (G.3 of the Code)
DECLARATION OF CONFORMITY
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 GERMAN CORPORATE GOVERNANCE CODE-
A BLUEPRINT FOR SUCCESSFUL CORPORATE
GOVERNANCE
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.
PURSUANT TO SECTION 289F AND SECTION 315D HGB
CORPORATE GOVERNANCE DECLARATION
↑↓ ↑ ||
135
REMUNERATION REPORT 2023
153
MEMBERS OF THE SUPERVISORY BOARD AND COMPOSITION OF THE COMMITTEES
149
147 MEMBERS OF THE EXECUTIVE BOARD
CORPORATE GOVERNANCE DECLARATION
136
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:
904 Carrera GTS
1. Age limit for Supervisory Board members (C.2 of the Code)
2. Maximum limit of Supervisory Board mandates (C.5 of the
Code)
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).
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.
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.
Until the new remuneration system comes into
effect, there was no systematic description of the
declarations required under recommendation G.1 of
the Code.
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 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
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)
In detail:
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.
4. Remuneration of the Executive Board (G.1, G.2, G.3, G.6 and
G.10 sentences 1 and 2 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.
3. Disclosure of election proposals (C.13 of the Code)
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.
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
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
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.
120
MENSCHENWÜRDIGE
100%
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.
- Declaration of intent to observe and promote
human rights
The working conditions are also determined by the following
guidelines and frameworks:
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.
Group GmbH, Porsche Engineering Services GmbH, or Porsche
Deutschland GmbH.
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
- Code of Conduct
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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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.
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.
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
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
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.
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.
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.
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
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.
Preventative health management
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.
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.
illnesses
Take preventative action to avoid unsafe situations and work-related
Safe and healthy workplace at
all times
Driven by
safety & health
automotive industry
Safest employer in the
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.
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.
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.
The safety of its employees is a top priority for the Porsche AG
Group. Consequently, occupational health and safety is
Embrace a culture of safety and
responsibility
Vision of occupational safety
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.
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 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.
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 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.
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
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.
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.
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121
Sustainability Social
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.
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.
Culture of safety and involvement
of the workforce
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.
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.
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.
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.
This applies to the design of workstations, equipment, and
installations. Potential hazards are identified and assessed even
as they are being set up.
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.
Occupational safety and prevention
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
of the direct suppliers of Porsche AG
are audited on the basis of sustain-
ability criteria.
Work-life balance
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.
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.
PERSONAL SAFETY OF CONSUMERS
AND/OR END USERS
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
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.
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
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
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
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
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.
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.
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.
ENVIRONMENT
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.
88.3%
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.
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.
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).
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.
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
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.
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.
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.
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.
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."
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.
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
Flexibility in the workplace and reduction
of working hours
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.
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.
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.
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.
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
↑↓ ↑ |||
125
Sustainability Social
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.
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.
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.
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.
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
Socially ethical transformation
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.
Membership on supervisory boards and other control bodies
through regular discussions between the Chairman of the
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
Fringe benefits, including:
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
-Benefit in kind subject to lump-sum taxation
-Allowance for health and long-term care insurance
-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
Fringe benefits
Base salary
components
Fixed remuneration
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.
Annual bonus/short-term
incentive (STI)
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.
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
This chapter first provides an overview of the Executive Board
remuneration system before going into the components of the
remuneration in fiscal year 2023.
Akan Isik
Plan type:
Cap:
Chairman of the Executive Board: €2,400,000;
Deputy Chairman of the Executive Board:
€2,800,000; Executive Board member:
€2,346,666
Performance
criterion:
Performance
period:
Payment:
EPS of the Porsche AG Group
Measured forward over four years
to ensure the long-term effect of the
behavioral incentives and support the
strategic target of achieving
competitive profitability.
Exit:
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
-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
1 Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
Corporate Governance Remuneration report 2023
155
↑↓ ↑ |||
156
↑↓ ↑ 0 |||
Remuneration component
Measurement base/parameters
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
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
for 2023:
Pro rata reduction if the service contract
starts or ends during the year
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
Plan type:
Virtual performance share plan
Target amount:
Cap:
1 Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
Wolfgang von Dühren
Hauke Stars
Micaela le Divelec Lemmi
Corporate Governance Members of the Supervisory Board and composition of the committees
151
↑↓ ↑ 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)
Membership of statutory supervisory boards in Germany
Jenoptik AG, Jena (until December 31, 2023) 1,3
3 Listed company
2 Appointment within the group
1 Appointment outside the group
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
Member of the Board of Management of Volkswagen AG
Thales Deutschland GmbH, Ditzingen¹
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
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig (Deputy Chairman)²
for IT
Member since: 2022
Nationality: German
1 Appointment outside the group
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)
Members of the Audit Committee
Dr. Wolfgang Porsche (Chairman)
Jordana Vogiatzi
Harald Buck
Members of the Nomination Committee
Dr. Wolfgang Porsche (Chairman)
Dr. Arno Antlitz
Hauke Stars
Members of the Related Party Committee
Dr. Hans Michel Piëch
Hauke Stars
Other benefits
Carsten Schumacher
Jordana Vogiatzi
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
AUDI AG, Ingolstadt¹
Harald Buck
CARIAD SE, Wolfsburg'
PowerCo SE, Salzgitter¹
Comparable appointments in Germany and abroad
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
RWE AG. Essen 1.3
VDF Filo Kiralama A.S., Istanbul (Chairman)1
IPO bonus
Post-contractual non-
competition covenant
0
0.0
800,000
28.3
1,388,800
49.2
Fixed remuneration
Annual base salary
Fringe benefits
Total fixed remuneration
Variable remuneration
Short-term variable remuneration (STI) 2023
2023
€
%
800,000
30.9
28.3
800,000
Barbara Frenkel, Member of the Executive Board; Procurement
%
72.0
3,625,583
100.0
386,206
4,011,789
Total variable remuneration
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
Total remuneration including pension expenses
34,682
834,682
Dr. Oliver Blume¹, Chairman of the Executive Board
Annual base salary
Fringe benefits
Total fixed remuneration
Variable remuneration
Short-term variable remuneration (STI) 2023
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
2023
€
Fixed remuneration
2,609,596
1.4
Guaranteed LTI 2022-2024
324,342
3,149,969
Total variable remuneration
1,752,772
67.7
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.
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
2,587,454
100.0
327,993
2
Dr. Blume receives a fringe benefit allowance from Volkswagen AG
Total remuneration including pension expenses
2,915,447
Corporate Governance Remuneration report 2023
159
↑↓ ↑ |||
140
Total remuneration including pension expenses
14.1
363,972
Tranche 1 of the IPO bonus
0
0.0
1,388,800
53.6
Tranche 1 of the IPO bonus
Total variable remuneration
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
32.3
636,827
Multiyear variable remuneration/long-term incentive (LTI)
2,025,627
71.7
Guaranteed LTI 2022-2024
0
0.0
2,825,627
100.0
22.5
10.0
363,972
Tranche 1 of the IPO bonus
- Payment of a non-competition payment net of the pension
- No non-competition payments if taking up work at
Volkswagen AG and/or in the Volkswagen Group
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
- A clawback is not permissible if more than three years have
elapsed since the variable remuneration component was paid
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
- For the Chairman of the Executive Board¹: €5,000,000 gross
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
Dr. Oliver Blume receives pro rata remuneration from Porsche AG and Volkswagen AG.
Target
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.
(Compensation) payments are
designed to attract qualified
candidates.
Non-competition payments are made
as compensation for observing the
post-contractual non-competition
covenant.
Intended to encourage lawful and
ethical behavior among Executive
Board members.
Maximum remuneration is intended to
ensure that the remuneration of the
Executive Board members is not
unreasonably high when measured
against the peer group.
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.
III. Remuneration of the Executive Board members
serving in fiscal year 2023
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
Penalty and clawback
Maximum remuneration
1
Plan type:
Term:
Virtual share plan
Grant amount:
Threshold:
Cap:
1. EXECUTIVE BOARD MEMBERS IN FISCAL YEAR 2023
The members of the Porsche AG Executive Board in fiscal year
2023 were as follows:
Performance
criteria:
Exit:
One, two and three years after the IPO (three
tranches)
Dependent on market capitalization of
Porsche AG at IPO
Not granted if market capitalization is below
threshold value
Maximum of 150% of the grant amount;
minimum of 70% of the grant amount
Market capitalization of Porsche AG
Share price performance of the Porsche
preferred share including dividends
Each sub-tranche at the end of the month
following the first, second and third
anniversaries of the IPO
-If the service relationship is terminated
during the performance period, payment not
until the regular date
Payment:
- 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
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
of Dr. Blume's work. The Volkswagen AG remuneration will
not be counted toward the Porsche AG remuneration.
2023
Fixed remuneration
Annual base salary
Fringe benefits
Total fixed remuneration
Variable remuneration
Short-term variable remuneration (STI) 2023
€
%
Lutz Meschke 1, Deputy Chairman of the Executive Board; Finance and IT
950,000
65,987
1,015,987
1.8
28.0
1,649,200
45.5
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
Guaranteed LTI 2022-2024
596,424
16.5
26.2
Benefits agreed with new
Executive Board members for a
defined period of time or for the
entire term of their service
contracts
Further details on the tables are presented below the individual
tables.
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.
- 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.
- Andreas Haffner has been a member of the Executive Board
since October 1, 2015.
Sajjad Khan has been a member of the Executive Board
since November 1, 2023.
Detlev von Platen has been a member of the Executive
Board since November 1, 2015.
Albrecht Reimold has been a member of the Executive Board
since February 1, 2016.
- Dr. Michael Steiner has been a member of the Executive
Board since May 3, 2016.
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.
2. REMUNERATION GRANTED AND OWED IN FISCAL YEAR
2023
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.
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:
The term "owed" (geschuldet) refers to all legally existing
liabilities for remuneration components that are due but
have not yet been fulfilled.
Corporate Governance Remuneration report 2023
157
158
2.1. Overview in the tables
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.
The relative shares shown in the tables relate to the
remuneration components granted and owed in the respective
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 term "granted" (gewährt) refers to the actual receipt
(Zufluss) of the remuneration component.
VDF Faktoring A.S., Istanbul (Chairman)1
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.
3 Listed company
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.
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.
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.
LEGISLATION ON THE EQUAL PARTICIPATION OF
WOMEN AND MEN IN MANAGEMENT POSITIONS
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.
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 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.
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 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.
(12) Knowledge of and skills and professional experience in
the luxury goods industry.
Hauke Stars
Jordana Vogiatzi
Harald Buck
Akan Isik
Nora Leser
Knut Lofski
Vera Schalwig
Stefan Schaumburg
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
Carsten Schumacher
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.
Wolfgang von Dühren
Dr. Hans Peter Schützinger
> https://investorrelations.porsche.com/en/financial-figures. The
remuneration report is also available at:
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.
Dr. Oliver Blume (*1968)
Chairman (since 2015)
Chairman of the Board of Management of Volkswagen AG
Beginning of membership of the Executive Board: 2013
Nationality: German
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
Members of the Executive Board
MEMBERS OF THE EXECUTIVE BOARD
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.
The Porsche AG Group has made a commitment to sustainable,
transparent, and responsible corporate governance.
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
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
RELEVANT DISCLOSURES ON CORPORATE
GOVERNANCE PRACTICES
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
Compliance and Risk Management
Hans Dieter Pötsch
Dr. Ferdinand Oliver Porsche
Dr. Hans Michel Piëch
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.
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.
The Executive Committee is currently made up of three
shareholder representatives and three employee
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.
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.
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
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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.
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.
over the Supervisory Board meetings. If he is unable to do so,
the Deputy Chairman performs these tasks.
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
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.
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.
VW New Mobility Services Investment Co., Ltd., Shanghai¹
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
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
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.
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 is generally a
shareholder representative, and the Deputy Chairman is
>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:
(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
(8) Personnel expertise and
remuneration
(9) Co-determination
(10) Sustainability
Skills and Expertise Supervisory Board
(11) Digital
(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
(12) Luxury goods sector
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
(3) Knowledge of and skills and professional experience in
the field of research and development, particularly
technologies with relevance for the company.
(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.
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.
of
No more than two former members of the Executive Board
should be members of the Supervisory Board.
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:
- 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.
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.
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.
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:
(1) Knowledge of and skills and professional experience in
the manufacture and sale of all types of vehicles and
engines or other technical products.
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.
Corporate Governance Members of the Executive Board
141
↑↓ ↑ ||
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
Nationality: German
Member since: 2020
Services AG
Chairman of the Board of Volkswagen Financial
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
Volkswagen AG, Wolfsburg 1,3
Comparable appointments in Germany and abroad
Porsche Bank AG, Salzburg¹
Members of the Supervisory Board
Harald Buck (*1962)
Chairman of the works council
Zuffenhausen/Ludwigsburg/
Sachsenheim
Chairman of Porsche general and group works council
Member since: 2019
Nationality: German
Dr. Christian Dahlheim (*1968)
Volkswagen Finance (China) Co., Ltd., Beijing'
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
Porsche Automobil Holding SE, Stuttgart (Deputy Chairman) 1.3
Porsche Holding Gesellschaft m.b.H., Salzburg¹
Schmittenhöhebahn AG, Zell am See¹
Head of International VIP & Special Sales Porsche AG
Member since: 2014
Nationality: German
Akan Isik (*1971)
Works council Zuffenhausen
Member of Porsche general and group works council
Member since: 2019
Nationality: German
Nora Leser (*1981)
Trade union secretary of IG Metall-Stuttgart office
Member since: 2021
Nationality: German
Knut Lofski (*1963)
Chairman of the works council Porsche Leipzig;
Member of Porsche group works council
Member since: 2019
Nationality: German
147
2 Appointment within the group
Appointment outside the group
Wolfgang von Dühren (*1962)
Nationality: USA, British
Chair & Chief Executive Officer at Kyriba
Melissa Di Donato Roos (*1972)
Membership of statutory supervisory boards in Germany
Porsche Automobil Holding SE, Stuttgart 1,3
AUDI AG, Ingolstadt¹
Volkswagen AG, Wolfsburg 1,3
Comparable appointments in Germany and abroad
Porsche Holding Gesellschaft m.b.H., Salzburg¹
Porsche Lifestyle GmbH & Co. KG, Ludwigsburg¹
Membership of statutory supervisory boards in Germany
AUDI AG, Ingolstadt¹
Volkswagen AG, Wolfsburg (Chairman) 1.3
Bertelsmann Management SE, Gütersloh¹
Comparable appointments in Germany and abroad
Bertelsmann SE & Co. KGaA, Gütersloh¹
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
TRATON SE, Munich (Chairman) 1.3
Wolfsburg AG, Wolfsburg¹
Membership of statutory supervisory boards in Germany
Porsche Leipzig GmbH, Leipzig (since February 13, 2023)²
Member since: 2022
Porsche Holding Gesellschaft m.b.H., Salzburg¹
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
Membership on supervisory boards and other control bodies
Comparable appointments in Germany and abroad
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
Comparable appointments in Germany and abroad
Porsche Deutschland GmbH, Bietigheim-Bissingen (Chairman)²
Porsche Digital GmbH, Ludwigsburg²
FlexFactory GmbH, Munich (until November 30, 2023)1
2 Appointment within the group
Beginning of membership of the Executive Board: 2016
Nationality: German
Members of the Executive Board
Barbara Frenkel (*1963)
Familie Porsche AG Beteiligungsgesellschaft, Salzburg (Chairman)¹
Schmittenhöhebahn AG, Zell am See¹
148
Procurement
Beginning of membership of the Executive Board: 2021
Nationality: German
Andreas Haffner (*1965)
Human Resources and Social Affairs
Appointment outside the group
Beginning of membership of the Executive Board: 2015
Nationality: German
Beginning of membership of the Executive Board: 2023
Nationality: German
Detlev von Platen (*1964)
Sales and Marketing
Albrecht Reimold (*1961)
Production and Logistics
Beginning of membership of the Executive Board: 2016
Nationality: German
Dr. Michael Steiner (*1964)
Research and Development
Sajjad Khan (*1973)
Car-IT
KS HUAYU AluTech GmbH, Neckarsulm¹
Beginning of membership of the Executive Board: 2015
Nationality: German, French, USA
Smart Press Shop GmbH & Co. KG, Halle¹
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
1
Ibrahim Aslan (*1973)
Member of the works council Zuffenhausen/Ludwigsburg/
Member since: 2014
Member since: 2022
Appointment outside the group
2 Appointment within the group
3 Listed company
Comparable appointments in Germany and abroad
AUDI AG, Ingolstadt¹
Porsche Werkzeugbau GmbH, Schwarzenberg (Chairman)²
Porsche Logistik GmbH, Stuttgart (Chairman)²
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
Nationality: German
Managing Director of Members and Finance of IG Metall
Stuttgart
Sachsenheim; head of representatives body
Jordana Vogiatzi (*1976)
Comparable appointments in Germany and abroad
Deputy Chairwoman
Cellforce Group GmbH, Tübingen (Chairman)²
Group 14 Technologies, Inc., Woodinville¹
HIF Global LLC, Delaware¹
Membership of statutory supervisory boards in Germany
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
Porsche Digital GmbH, Ludwigsburg²
CARIAD SE, Wolfsburg¹
Members of the Supervisory Board
Dr. Wolfgang Porsche (*1943)
Chairman
Business administration graduate
Member since: 2009
Volkswagen Osnabrück GmbH, Osnabrück¹
Nationality: Austrian
COMPOSITION OF THE COMMITTEES
(factor)
Target achievement
Target achievement
46.7
16.7
43.0
17.3
20.0
62.7
1.26
Actual¹
15.0
Actual
Long-term incentive (LTI) until
December 31, 2022
1.22
Measured forward over three years
Virtual performance share plan
Chairman of the Executive Board1: €0;
Deputy Chairman of the Executive Board:
€653,400; Executive Board member:
€945,000
EPS of Volkswagen AG (100%)
Exit:
Threshold value (0.7)
200% of the target amount, i.e.:
(factor)
Cap:
Plan type:
Target amount
until December
31, 2022:
Measurement base/parameters
Remuneration component
The following table provides an overview of the LTI under the
former Executive Board remuneration system.
1.26
1.10
Performance
period:
Performance
criterion:
64.5
Customer excitement
45.0
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.
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.
%
2023
Decarbonization index
Environmental
Social
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.
164
Chairman of the Executive Board: €0; Deputy
Chairman of the Executive Board:
€1,306,800; Executive Board member:
€1,890,000
↑↓ ↑ 0 ||
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
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.
Threshold value (0.7)
Gender quota for the
first reporting level
index
16.7
18.6
63.5 Target value (1.0)
Target value (1.0)
47.0
18.4
Gender quota for the
second reporting level
20.5
62.5
Maximum value (1.3)
In tCO₂e/vehicle
2023
2023
2023
Maximum value (1.3)
-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
EPS per preferred share in €
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.
=
Measurement of EPS performance over three years
€ payment
Corporate Governance Remuneration report 2023
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
4.86
4.86
7.56
2021
2022
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.
0
0
40
Dr. Oliver Blume
2020
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
Closing reference price
Dividend equivalent
the date of allocation
35
30
25
÷
Target achievement in %
€ target value
EPS performance measurement
Performance period
LTI grant
150
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.
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
aa) Information on the LTI under the former Executive Board
remuneration system
b) Performance criteria for long-term incentive (LTI) 2020-
2022 and the outlook for the LTI 2021-2023 and 2022-2024
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.
Including voluntary CO₂ compensation measures through climate change mitigation projects
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.
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).
Target
Share price (beginning of
50
20
15
10
5
0
the performance period)
100
Share price plus
dividends (end of
Final number of (virtual)
performance shares
LTI payment
performance shares
Provisional number
of (virtual)
=
the performance period)
×
140.0
€
24.7
483,360
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
Fixed remuneration
Annual base salary
a) Performance criteria for the annual bonus
2.2.1. Performance criteria for variable remuneration
2.2. Explanations
27.6
853,161
1.7
Total remuneration including pension expenses
53,161
800,000
%
2023
Variable remuneration
Total fixed remuneration
Fringe benefits
25.9
Target value
Mr. Khan has been a member of the Executive Board of Porsche AG since November 1, 2023; remuneration is calculated pro rata temporis.
423,035
4,268
Annual base salary
Lutz Meschke
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
Total remuneration including pension expenses
Total variable remuneration
100.0
369,702
53,333
62.8
232,101
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Pension expenses
Tranche 1 of the IPO bonus
0
Guaranteed LTI 2022-2024
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
0.0
0
44.8
0.0
×
Target achievement
=
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%)
18.0
24.0
30.0
bb) ESG factor
Target achievement (in %)
Total target achievement
Threshold value (50%)
Actual
Social (S)
Target value (100%)
ROI
174.0
Target achievement (in %)
18.0
Actual
12.5
Maximum value (150%)
ESG
Total STI capped at 180%
3,414,648
11.8
363,972
Tranche 1 of the IPO bonus
12
སཊྛ
15.6
ROI
483,360
Environment (E)
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
45.0
1,388,800
Short-term variable remuneration (STI) 2023
Payment amount
Guaranteed LTI 2022-2024
106.0
+
×
Total remuneration including pension expenses
Multiplier 0.7-1.3
50 to 200%
50 to 150%
100.0
72.4
1/2
ROS
2,236,132
3,089,293
325,355
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Total variable remuneration
+
14
Gender quota
+
½
Decarbonization
index
Pension expenses
3,682
2025
3,718
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
Barbara Frenkel
Andreas Haffner
Sajjad Khan
Detlev von Platen
Albrecht Reimold
Dr. Michael Steiner
Total
Sub-tranche 1
From IPO date to first anniversary
Sub-tranche 2
From IPO date to second anniversary
3,675
3,675
3,675
3,675
3,675
6,430
3,675
■
3,675
6,430
6,430
at the date of allocation
cc) Reference prices/dividend equivalent
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
Sub-tranche 3
From IPO date to third anniversary
3,675
3,675
1.01
2023-2026
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
€
Maximum value
Target value 100%
Minimum value
Actual
Target achievement (%)
2023
6.00
4.50
aa) Information on the IPO bonus
e) IPO bonus
1 Determined at the end of the performance period.
2026
2024
2023
101.60
Dividend equivalent
Initial reference price
€
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
139
5.67
3.50
Closing reference price¹
3,675
3,675
3,675
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
change in the period up to the age of 65 (for details on earlier
pension commitments, see the remuneration report 2022).
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.
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.
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.
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)
99.3
0.7
36.0
1,020
Fringe benefits
154,080
Pension 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.
%
2023
Fixed remuneration
Former member of the Executive Board; Procurement
Exit date: August 18, 2021
Uwe-Karsten Städter
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.
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 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 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.
term of the severance payment installments and to be settled
and paid out in accordance with the contractual provisions.
98.03
Closing price of sub-tranche 1
Dividend equivalent 2023
82.50
Allocation price
€
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.
1.01
3,675
28,480
28,480
3,675
3,675
3,675
3,675
3,675
28,480
Andreas Haffner
Sajjad Khan
Closing price of sub-tranche 21
1 Determined at the end of the performance period.
↑↓ ↑ 0 |||
170
↑ ↓ ↑ 0 |||
169
Corporate Governance Remuneration report 2023
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
Dividend equivalent 2024
Closing price of sub-tranche 31
Dividend equivalent 2025
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.
2.2.4. Benefits and benefit commitments in connection with
termination
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.
Maximum remuneration within the meaning of section 87a (1)
sentence 2 no. 1 AktG is in place for each Executive Board
2.2.3. Maximum remuneration
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.
2.2.2. Conformity with the Executive Board remuneration
system
a) Benefits and benefit commitments to Executive Board
members for early termination
4,381
85,266
11,549
2022
2021
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
29.69
2022
€
7.56
27.82
7.56
27.82
4.86
2023
2023
2022
Dividend equivalent
148
148
150
Target achievement (%)
29.65
2021
2021
€
110.83
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
Closing reference price1
Performance period 2021-2023
EPS Volkswagen preferred share
Performance period 2020-2022
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.
cc) EPS performance
EPS Volkswagen preferred share
149.14
€
5,377
30,603
5,045
26,427
20,642
Total
4,240
Initial reference price
2020
Maximum value
30.00
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 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
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.
d) Performance criteria for the long-term incentive (LTI) 2023-
2026
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.
The following table provides an outlook on the performance
criteria for the already allocated 2023-2026 tranche.
bb) Information on the performance shares
Albrecht Reimold
11,549
Detlev von Platen
1,930
11,549
11,549
148
13,780
the date of allocation
Number of virtual shares allocated at
Performance period
2023-2026
Barbara Frenkel
Lutz Meschke
Dr. Oliver Blume
11,811
150
29.69
31.98
29.69
Actual
10.00
10.00
10.00
Minimum value
29.65
EPS Volkswagen preferred share
20.00
20.00
Target value 100%
Performance period 2022-2024
30.00
30.00
20.00
11,549
16.66
2023
10.00
10.00
Minimum value
20.00
20.00
Target value 100%
€
30.00
Maximum value
83
148
148
Target achievement (%)
2022
30.00
133,333
93.5
Pension expenses
0
0
Hauke Stars¹
0
0
0
0
Dr. Hans Peter Schützinger¹
100.0
239,000
3.8
9,000
41.8
100,000
54.4
130,000
Carsten Schumacher
0.0
9,000
6.5
139,000
100.0
Stefan Schaumburg
0
130,000
0
0.0
9,000
6.5
139,000
100.0
93.5
0
0
2,275,000
For the Executive Board:
2022
2023
compared with compared with
2022
Annual change Annual change
Active Supervisory Board members
Dr. Wolfgang Porsche (Chairman)
Jordana Vogiatzi (Deputy Chair)
Dr. Arno Antlitz
Supervisory Board remuneration'
%
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.
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.
Board members with the earnings performance of Porsche AG
and with the average remuneration of employees on a full time
equivalent basis.
The following table shows a comparison of the year-on-year
percentage change in the remuneration of the Supervisory
V. Comparative presentation
176
↑↓ ↑ 0 |||
175
the boards of other group
companies
Remuneration for serving on
75.4
600,000
19.9
144,000
4.8
3,019,000
Total
100.0
These Supervisory Board members waived remuneration in full for fiscal year 2023.
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
1
2021
93.5
Vera Schalwig
100.0
189,000
4.8
9,000
26.5
50,000
68.8
130,000
100.0
139,000
6.5
9,000
0.0
0
93.5
130,000
Nora Leser
9,000
6.5
139,000
100.0
Wolfgang von Dühren
130,000
Knut Lofski³
93.5
0.0
9,000
6.5
139,000
100.0
Akan Isik
0
130,000
130,000
0
100.0
139,000
6.5
9,000
0.0
0
130,000
Hans Dieter Pötsch
100.0
189,000
4.8
9,000
26.5
50,000
68.8
130,000
Dr. Ferdinand Oliver Porsche
0.0
9,000
6.5
139,000
100.0
Dr. Hans Michel Piëch
93.5
130,000
0
0.0
9,000
6.5
139,000
100.0
93.5
February 28, 2024
For the Supervisory Board:
February 28, 2024
202
198
194
194
Overall statement on business development and the economic situation
192
Personnel
191
Research and development
191
Production
190
Deliveries
188
Sector-specific environment
187
Macroeconomic environment
COMBINED MANAGEMENT REPORT
WITH NON-FINANCIAL STATEMENT
86
959 S
180
FUNDAMENTAL INFORMATION ABOUT THE GROUP
205
180
182 Strategic direction of the Porsche AG Group
Management and key performance indicators
Corporate Governance Declaration
183
185
186
186
BUSINESS DEVELOPMENT
Business model
19
210
Financial position
155,100
↑↓ ↑ ||
179
Overall statement on anticipated development
273
Forecast assumptions
271
Development of the global economy and passenger car markets
REPORT ON EXPECTED DEVELOPMENTS
270
Financial risk management and methods as well as opportunities
269 Summary
Risks and opportunities as of December 31, 2023
General principles of risk and opportunity management
REPORT ON RISKS AND OPPORTUNITIES
270
267
262
Net assets
PORSCHE AG HGB FINANCIAL STATEMENTS (CONDENSED VERSION)
NON-FINANCIAL STATEMENT 2023
210 Sustainability management and organization
214
EU taxonomy
RESULTS OF OPERATIONS, FINANCIAL POSITION AND NET ASSETS
Results of operations
228
236
Social
250
Governance
254
254
Environment
178
↑↓ ↑ ||
177
61.8
Dr. Hans Michel Piëch
37.9
4.1
Knut Lofski
75.9
31.0
Nora Leser
37.9
4.1
Akan Isik
37.9
4.1
Wolfgang von Dühren
265.0
Melissa Di Donato
265.0
126.6
37.1
287.7
53.2
Ibrahim Aslan
1,303.8
Harald Buck
35.8
104.6
45.6
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
Dr. Oliver Blume
Chairman of the Executive
Board
Dr. Ferdinand Oliver Porsche
123.3
464.2
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
12.5
71.9
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
114.2
0.0
0.0
Earnings performance
Hans Dieter Pötsch
162.6
Vera Schalwig
4.1
387.5
Stefan Schaumburg
Operating return on sales of the
6.5
Carsten Schumacher
35.8
38.7
Dr. Hans Peter Schützinger
-100.0
Hauke Stars
59.7
0
93.5
130,000
Andreas Haffner
Sajjad Khan
327,993
3,679,250
Barbara Frenkel
386,206
4,000,346
324,342
3,952,119
in fiscal year 2023
2023
Exit date: May 3, 2016
Former member of the Executive Board; Research and
Development
Wolfgang Hatz
of section 162 (1) sentence 1 AktG
100.0
160
Andreas Haffner, Member of the Executive Board; Human Resources and Social Affairs
Fixed remuneration
Short-term variable remuneration (STI) 2023
Variable remuneration
Total fixed remuneration
Fringe benefits
Annual base salary
3,716,727
Fixed remuneration
€
2023
Detlev von Platen, Member of the Executive Board; Sales and Marketing
%
€
2023
%
800,000
324,999
53,333
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 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.
V. Comparative presentation
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.
2. TOTAL REMUNERATION GRANTED TO EXECUTIVE BOARD
MEMBERS WHO LEFT BEFORE THE BEGINNING OF FISCAL
YEAR 2013
%
€
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
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
19,213
Total remuneration within the meaning
100.0
19,213
Fringe benefits
Detlev von Platen
4,196,289
324,420
Albrecht Reimold
3,523,678
324,731
54,717
3,537,814
Fixed remuneration
26,660,938
2,391,379
Pension payments
0
0.0
325,355
25.8
62,656
2.0
3,098,788
100.0
Pension expenses
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
Total variable remuneration
Tranche 1 of the IPO bonus
Guaranteed LTI 2022-2024
Multiyear variable remuneration/long-term incentive (LTI)
Short-term variable remuneration (STI) 2023
Total remuneration within the meaning of section 162 (1) sentence 1 AktG
Variable remuneration
Fringe benefits
Annual base salary
Fixed remuneration
%
€
2023
Total fixed remuneration
72.6
2,236,132
Total variable remuneration
1,388,800
Short-term variable remuneration (STI) 2023
44.8
1,388,800
Variable remuneration
27.4
45.1
1.4
800,000
44,170
844,170
Total fixed remuneration
Fringe benefits
Annual base salary
27.8
862,656
26.0
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).
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
Guaranteed LTI 2022-2024
72.2
2,236,132
Total variable remuneration
11.8
363,972
Tranche 1 of the IPO bonus
Multiyear variable remuneration/long-term incentive (LTI) 2020-2022 less guaranteed LTI 2020-
2022
11.8
Tranche 1 of the IPO bonus
15.7
483,360
Guaranteed LTI 2022-2024
15.6
483,360
363,972
Fixed remuneration
Corporate Governance Remuneration report 2023
172
130,000
0
0
0
0
100.0
254,000
3.5
9,000
19.7
50,000
76.8
195,000
100.0
369,000
2.4
9,000
(Chairman)
Jordana Vogiatzi³
(Deputy Chair)
Dr. Arno Antlitz¹
Ibrahim Aslan
%
€
93.5
%
€
%
260,000
70.5
100,000
27.1
%
Dr. Wolfgang Porsche
0
9,000
Melissa Di Donato Roos
100.0
189,000
4.8
9,000
26.5
50,000
68.8
130,000
Micaela le Di Divelec Lemmi
100.0
100,000
0.0
0
100.0
100,000
0.0
6.5
139,000
100.0
Harald Buck
130,000
54.4
0.0
100,000
9,000
3.8
239,000
100.0
Dr. Christian Dahlheim²
0
41.8
Supervisory Board member
Total remuneration
Meeting attendance fees
Earnings performance
-63.6
19.6
-32.1
Wolfgang Hatz
-82.0
Uwe-Karsten Städter
Former Executive Board members
1.1
11.1
Dr. Michael Steiner
2.1
11.6
Albrecht Reimold
2.8
10.4
Detlev von Platen
Sajjad Khan
%
Executive Board remuneration¹
Active Executive Board members
Dr. Oliver Blume
Lutz Meschke
Barbara Frenkel
Operating return on sales of the
Annual change Annual change
2021
7.5
54.3
-5.2
243.5
11.1
2.8
Andreas Haffner
2023
2022
compared with compared with
2022
0.0
12.5
Porsche AG Group (ROS)
-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.
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.
Average employee remuneration of
PAG
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).
Corporate Governance Remuneration report 2023
173
↑↓ ↑ ||
174
Fixed remuneration
Work in committees
The remuneration and flat-rate attendance fees are each
payable after the end of the fiscal year.
171
Employee remuneration
IV. REMUNERATION OF ACTIVE SUPERVISORY BOARD
MEMBERS IN FISCAL YEAR 2023
EBITDA margin of the automotive
segment
Net income or loss for the year of
Porsche AG (HGB)²
71.9
114.2
2.0
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.
2.9
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.
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.
Total remuneration within the meaning