Annual Press Conference
11 March 2016

Key Topics
Talking to Oliver Blume and Lutz Meschke

Annual Press Conference Documentation

The following documentation for this year's Annual Press Conference on 11 March 2016 is available for download. In addition to the press release and the speeches by the Executive Board, this also includes photos of the Chairman of the Executive Board Oliver Blume and of the Deputy Chairman of the Executive Board and Member of the Executive Board Finance and IT, Lutz Meschke. Product photos and photos from the day of the press conference in the Porsche Museum in Stuttgart are also available for download.

Key Topic from the Image Section of the Annual Report 2015
Success Factor Human Capital

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.

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 company’s collecting points can be found on the ground floor of Building 4 in Plant 4 in Zuffenhausen: this mysterious room is called the “Innovation Room”, and has just enough space for 20 people. Anyone expecting a high-tech laboratory full of electronic equipment and monitors for working on the future here will be bitterly disappointed upon entering the room. The only furniture in there is a white varnished counter and a few stools, and a large screen on the wall. That’s it.

The reason for these sparse fittings is that clarity allows creativity to flow unhindered. All there is to show what innovative projects Porsche Production is currently working on is a large overview on the wall. The message is clear: it is the people taking part in the innovation process who fill the room – with their ideas and a lively exchange of information. The meetings, which take place regularly, are generally a colourful mix. Hierarchies do not play a role here. The aim is to create interfaces to as many departments as possible as well as a cross-section of different disciplines.

„Porsche puts people first.“
Oliver Blume

When he took on the position of Head of Production a good three years ago, today’s CEO Oliver Blume called the innovation 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 Production a competitive edge. But ideas do not appear by themselves, you need to do something to generate them,” says 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.

Success Factor Human Capital

  • Inspiration

    Turbocharger for Ideas

    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 graduate 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 members of the Innovation Management division.

    Read the full Article

    „The risk of failure that comes with every proposal is by no means frowned upon.“
    Sarah Heizmann

    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 introduction 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 innovations 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 presentation 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 premium 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.

  • Freedom

    Inventive Minds are Encouraged

    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 preliminary leak test for the convertible top with the help of sonic waves. The heads of department in the Steering Committee were enthusiastic and encouraged the Technology Management graduate to pursue this very promising innovative 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.

    Read the full Article

    „At Porsche you can dive deep into the world of innovation. The goal is always series production.“
    Nicolas Immer

    What springs to mind? The Steering Committee and the Management 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 employees 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.

  • Trust

    Every Single Person Counts

    Generally the role of the “innovator” is left up to the R&D department in industrial companies. But Blume takes a somewhat different approach: Production – like every other department – becomes an idea factory in order to exploit the full potential for the best products on the market. At Porsche this vision is reality, because the employees possess certain skills. People like Christian Pfänder, for example. A man who goes through life upright and with a clear view of the problems ahead and their solutions.

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    „We work hand in hand to bring a new vehicle to production maturity.“
    Christian Pfänder

    At the Pilot Centre in Zuffenhausen, Pfänder is responsible for turning prototypes into production 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 looking 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 snowballs 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 leaving middle school, then high school and vocational college, Pfänder trained as an industrial clerk at a medium-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 construction” catapulted him into manufacturing the 918 Spyder. An outstanding vehicle in many respects.

  • Dynamics

    Systematic Transfer of Knowledge

    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.

    Read the full Article

    While manufacturing the 918 Spyder, Porsche put into practice many innovative ideas. And patents for several new developments 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 trolley 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.

    „What can motivate an employee more than seeing his or her own ideas being implemented?“
    Alexander Steiniger

    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 assembly for the sports car production series, 911 and 718. Steiniger 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 innovation themes emerged directly from the manufactory alone, and from the people working there and the heads of department; of these 25, ten were awarded a patent. Steiniger adds, “What can motivate an employee more than seeing his or her own ideas achieving success and being grabbed at?”

    It is also apparently small insights that enable great progress when practically implemented. For example, the so-called EC-screwdriver. This precision tool, which is driven by a high-power battery, managed its triumphal procession right up to line production. It tightens screws with a defined torque and at the same time documents, using digital signal processing, 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.

    “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 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-screwdriver 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 vehicles. This technology makes Porsche the benchmark in wireless 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.”

  • Motivation

    Productive Fireside Chats

    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 processes 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 planners, the colleagues from quality control, the purchasers and the suppliers critical topics are identified and possible solutions discussed directly on the construction component 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 completed 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.

    Read the full Article

    „The communication culture at Porsche is direct and always to the point.“
    Andreas Tietz

    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 surface 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 maintain this spirit.”

    In a company with around 25,000 employees, this philosophy 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 conversations 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.

    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.

  • Transparency

    On a Straight Path to Improvement

    Kai Maring and Andreas Juchem are two employees who have experienced Blume live at fireside chats. Juchem already knew him 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 Saxony every week. That made the Macan launch a topic of conversation, 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.

    Read the full Article

    „Clear error analysis and agreement about how to remedy the situation – a method that has proved its worth.“
    Andreas Juchem

    “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 construction 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.

    “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 motivate the team as a real team player himself.”

    „The quality of a vehicle does not first emerge on the conveyor belt, but long before that.“
    Andreas Juchem
  • Foresight

    Targeted Training

    The success of the vocational training lies in conveying to the new employees the innovation culture typical of Porsche from the very beginning. At the new training centre in Zuffenhausen, the company provides two bright, light-flooded floors with state-of-the-art equipment – the best possible prere­quisites 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 com­mercial 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 example, pointing their lives in a good direction. In addition to top training, they also have a guaranteed job if they pass their courses.

    Read the full Article

    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.

    „A training position at Porsche is highly sought after. We get 2,800 applications every year.“
    Dieter Esser

    That is why a vehicle like the new Porsche Mission E with its innovative electric drive and complex control engineering is already flowing now into the teaching schedules of the technical occupations, for example. Or the “Production 4.0” ­philosophy thanks to the use of networked production processes. 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 components, just like the ones that electronics technicians in industrial engineering will face later on in their job.”

    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 everything 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 company’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.

Key Performance Indicators

  • Porsche AG Group

    1) As of December 31.
    2) Relates to investments in intangible assets and property, plant and equipment.

Management Report

  • Business Development

    Global Economy Experiences Very Moderate Growth

    Global economic growth declined slightly to 2.5 percent in financial year 2015 (previous year: 2.7 percent). The economic situation in the industrialised 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.

    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 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).

    Economic Growth

    Change in GDP

    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 significant, 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.

    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, dropping 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.

    Porsche Delivers over 225,000 Vehicles

    Growth was considerable, with the number of new vehicle deliveries increasing by 19 percent in financial year 2015. The sports car manufacturer 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.

    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.

    Delivery of New Vehicles

    in units

    America

    United States: More than 50,000 New­ ­Vehicles Delivered

    Porsche delivered 51,756 new vehicles in the U.S. in financial year 2015, with the brand exceeding the 50,000-sale mark for the first time. Porsche also posted double-digit growth for a sixth consecutive time, at 10 percent in 2015. The Cayenne defended its position as the best-selling model series with 16,473 deliveries, of which 1,098 were S E-Hybrids. As a result, the SUV model out­performed the Macan, which at 13,533 deliveries also saw strong demand. A total of 4,986 Panameras were delivered to customers. At 9,898 and 6,663 deliveries respectively, the 911 and Boxster/Cayman 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 considerable 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.

    +10%

    Porsche was able to achieve an increase of 10 percent in the USA with 51,756 new vehicles delivered.

    Canada: Another Record Year

    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 strongest 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 integrated into the sole dedicated Porsche branch in Canada.

    South America: Holding Ground Despite the Headwind

    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 deliveries, 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 delivered 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.

    +21%

    Deliveries in Porsche’s home market of Germany again achieved a record high of 28,953 new vehicles.

    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. 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 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.

    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 com­parison 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.

    +33%

    Porsche Cars Great Britain exceeded the previous year’s figure by one third with 12,238 vehicles.

    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

    Tax incentives meant that the Porsche Cayenne S E-Hybrid was the best-selling model in the Bene­lux 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.

    1/3

    Deliveries of the Porsche Cayenne S E-Hybrid make up one third of deliveries in the Benelux countries.

    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 segment 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.

    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

    Porsche Switzerland set a new record in financial 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.

    +33%

    Porsche Switzerland increased its deliveries by one third in the financial year 2015.

    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.

    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.

    Eastern Europe: Growth in Poland and Turkey

    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.

    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, achieving double-digit growth despite the upcoming change of model.

    Asia

    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 overtook 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 delivered 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 in the previous year, with 27 percent growth and 6,527 vehicles delivered. Growth was driven by the Cayenne and Macan model series. Deliveries 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.

    South Korea: Strong Growth

    The Porsche subsidiary in South Korea significantly 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 significant 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 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 conflicts in Syria, Iraq and Yemen had a significant 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.

    Australia/New Zealand: Significant Growth

    Porsche Cars Australia again exceeded its prior-­year record in the reporting period by a significant 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.

    +46%

    2015 was again a record year for Porsche Cars Australia.

    Sales of Cayenne Diesel Vehicles in the United States Voluntarily Stopped as a Precautionary Measure

    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.

    Significant Events

    Oliver Blume Replaces Matthias Müller 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.

    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, transferred 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.

    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 approximately four-and-a-half years at Volkswagen as Head of Group Human Resources Top Management 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 managed the Volkswagen plant that also produces the body shell of the Porsche Cayenne. In addition, 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.

    Strategic Plant Development

    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 Ludwigsburg. 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.

    1,000

    new jobs will be created in Zuffenhausen alone due to the market ­introduction of the Mission E project.

    Training Centre Opened

    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 2014 the number of career entrants at Porsche grew by half to 450 young people.

    500

    trainees and students of the Baden-Württemberg Cooperative State University undergo training in the new training centre.

    Acquisition of Toolmaking Division from Kuka

    The sports car manufacturer acquired the toolmaking 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 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.

    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

    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 sub­sidiary of Porsche AG.

    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 PFS Group continued its international expansion in financial year 2015 with the formation of a financial services subsidiary in South Korea.

    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.

    Financial Services

    New Agreements

    Outlook

    Further Growth Possible

    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.

    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. Economic growth is expected to remain high 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.

    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 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.

    Anticipated Developments

    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 investments in vehicle projects and the expansion and renewal of sites are high, continuous productivity and process improvements and strict cost management are intended to ensure that Porsche AG’s high earnings objective continues to be achieved.

  • Employees, Sport and ­Society

    Employees

    Porsche was very successful in financial year 2015, thanks once again to its employees. The key human resources tasks at Porsche are to recruit and foster young talent, to integrate new staff and to provide employees with the optimal conditions and opportunities for their continuing development. In addition, the focus in the reporting period was on the new measures to safeguard the sites and on numerous other initiatives and programmes.

    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.

    Number of Employees

    of the Porsche AG Group

    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, represen­tatives of both employers and employees have ruled out redundancies until 2020 in the agreement.

    It was agreed that all current and future generations 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 business location. The construction work in Zuffenhausen 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 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.

    +40%

    The Porsche Group received over 140,000 applications in 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-Geislingen University in financial year 2015. In addition, a professorship for modularisation in vehicle development was established within the vehicle technology faculty at the Esslingen University of Applied Sciences in 2015 with the financial support of Porsche.

    The Ferry Porsche Prize was awarded for the fourteenth time. Awards were presented at our development centre in Weissach to the 251 school leavers with the best maths, physics and technology grades in their year.

    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 professional 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 Cooperative 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 comprehensive 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 with leading global business schools and focuses on developing international leadership skills in top management.

    Employee secondments to international markets and national subsidiaries are further cornerstones of the Company’s employee development initiatives. Long-term employee development planning at all levels ensures that Porsche employees can now be appointed to 85 percent of vacant management positions.

    Work-life Balance

    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 Zuffen­hausen 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 opportunities 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 development measures such as workshops and seminars, as well as networking events for female specialists and executives and mentoring initiatives. Porsche successfully increased the percentage of women in the first executive level by 7.7 percentage 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 initiatives 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 several 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.

    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 successfully increased the percentage of female DHBW students by 21.2 percentage points between 2011 and 2015, and the percentage of female trainees by 6.9 percentage points in the same period thanks to numerous measures to promote young talent.

    Porsche received the 2015 Total E Quality award, which is sponsored by the German federal government, in recognition of its successful commitment 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 Super­visory 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 respective contractual terms extend beyond 2016. In light of this, the Supervisory Board did not resolve to adjust the target for the percentage of women on Porsche’s Executive Board in the period up to December 30, 2016.

    Porsche AG set the following targets for the per­centage of women in management: the percentage of women in the first executive level should 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 components of the 2018 HR strategy, which successfully 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 processes 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 employees 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.

    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 “preparatory year” programme, and includes in particular language classes, social education and, if required, psychological support. It also covers acquiring basic technical skills and gaining an insight into the various qualified careers.

    Porsche Catering

    Porsche Catering provides healthy and delicious meals to plant employees. Additional catering facilities successfully opened in 2015, including the canteen at Plant 4 at the Zuffenhausen location 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 available from twelve on-site kiosks at our locations as of the end of the year.

    Another core area is the public catering service at the customer centre in Leipzig and the museum restaurant in Zuffenhausen. For example, the Christophorus restaurant lived up to its excellent reputation, receiving awards from online portal Trip Advisor and “Der Feinschmecker” magazine.

    Health and Safety Management

    At Porsche, health and safety management plays an integrative role in developing healthy working conditions with the primary goal of promoting and maintaining employees’ long-term health and fitness, and thus their employability. Its core elements include the early reintegration of employees returning from long-term sick leave and placing employees according to their health, especially in view of demographic change.

    Ergonomics assessments were carried out together with production development to make a preventative contribution to reducing high or unbalanced workloads by creating pro-health and pro-age workplaces (human ergonomics). Porsche occupational health and safety management 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.

    The core tasks performed by the safety experts 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 occupational accident rate (number of occupational accidents per million working hours) decreased by over 30 percent as against the prior-year period.

    -30%

    The occupational ­accident rate decreased by more than 30 percent in comparison to the previous year.

    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*

    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 reporting 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 manufacturer since the beginning of the period under review.

    37.200

    visitors saw world-class matches at the Porsche Tennis Grand Prix 2015.

    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 manufacturer recruited two new upcoming young players to the Porsche Talent Team in 2015, bringing the total number of sponsored players to six.

    Entry into Professional Golf

    Porsche has entered professional golf for the first time as title sponsor of the Porsche European Open, expanding on its long-term involvement 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 basket­ball 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 motivational 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.

    2.500

    children play at the Porsche Basketball Academy (BBA) in Ludwigsburg.

    The sports car manufacturer has been supporting 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 popu­larity 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 programme 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 manufacturer supports the team’s Second Way programme, which motivates the club’s players to safeguard their future careers. The initiative helps the young people to complete their school education or learn a profession in addition to their football careers.

    Porsche 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 competed against each other in four Leipzig neighbourhoods 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.

    Culture

    Porsche supports world-class cultural centres with tradition in Baden-Württemberg and Saxony. The sports car manufacturer’s aim is for people at its main locations to enjoy and have access to outstanding cultural experiences.

    Open Air Concert in the Leipzig Rosental

    The Leipzig Gewandhaus Orchestra is one of the world’s leading classical ensembles (fourth place in the Bachtrack rankings). The orchestra was awarded the ECHO Klassik, one of Germany’s most important prizes for classical music, in the reporting period. Porsche has been the main sponsor of the Gewandhaus concert hall in Leipzig since 2011. The Klassik airleben series is the summer highlight of the Leipzig concert season and is part of Leipzig’s musical culture. With theirunique flair, the concerts draw audiences to the Leipzig Rosental at the end of the Gewandhaus Orchestra’s season. More than 50,000 people enjoyed Mendelssohn’s Lobgesang symphony-­cantata and opera classics by Wagner, Verdi and Puccini in the reporting period. Arriving with picnic baskets and blankets, thousands of Leipzig residents savour the two nights in a relaxed atmosphere under the open sky each year. Thanks to Porsche, both open air concerts have been genuine concerts for all since 2014, with visitors enjoying the Gewandhaus Orchestra’s performances free of charge.

    50.000

    visitors enjoyed the Leipzig Gewandhaus Orchestra in the 2015 season.

    Porsche hosted the Leipzig Opera Ball for the third time in the reporting period. The event is con­sidered 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 evening 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.

    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.

    7.000

    spectators visited the ballet in the courtyard of the New Palace in Stuttgart.

    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.

    Social Commitment

    The foundation of Porsche’s social commitment is to support children and provide opportunities for disadvantaged people. The sports car manufacturer’s focus in Germany is on supporting social projects at its locations. Outside Germany, Porsche is committed to sustainable projects in partnership with reliable local partners.

    Six-hour Run for Charity

    In Germany, Porsche supported children’s wards and clinics such as the Olgäle in Stuttgart, as well as foundations and associations such as Trott-war, a street newspaper that aims to help socially excluded people to return to work. Disadvantaged young people work towards apprentice placements as part of Joblinge, an initiative run by the job centre in Stuttgart. The programme helps them find internships and receive job application training, and supports them in retrospectively completing their school education. Porsche supports similar projects in its other locations such as Leipzig, Ludwigsburg, Bietigheim-Bissingen and Weissach.

    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.

    175,000 Euro

    were raised at the 911-sponsored run by Porsche employees for various charity ­projects.

    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 reporting 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.

    Science & Education

    Igniting passion for technology – with practical application: this is Porsche’s objective in supporting schools and universities. Porsche provides 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 international 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 manufacturer 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 Education (Techniklernwelten).

    87,000

    young people attend the GaraGe Leipzig Training Workshop annually.

  • Research and Development

    Sensational Global Launches

    The Cayman GT4 celebrated its world premiere at the Geneva Auto Show at the beginning of March 2015. The engine, chassis, brakes and aerodyna­mics of the Porsche GT family’s new member have been designed for maximum 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).

    Research and ­Development Costs

    in billion euro

    The second new model unveiled in Geneva was the 911 GT3 RS. This high-performance sports car is the epitome of intelligent lightweight 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).

    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 enthusiastically received by visitors. The lightest and at the same time most powerful Boxster accelerates 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 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 maximum 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 maximum 7,500 rpm clearly exceeds the upper limits of conventional turbocharged engines. Driving performance: the Carrera Coupé with PDK transmission 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 retuned Porsche Active Suspension Management (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 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 predecessors, with average fuel consumption down 1.2 litres to 8.0 l/100 km.

    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 fea­tures round off the model’s sporty appearance.

    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 Inter­national 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 maintains the charge pressure during load changes, i.e. when the accelerator is released briefly. As a result, the engine reacts virtually without delay when the accelerator is pressed again.

    The 911 Turbo S Coupé accelerates to 100 km/h 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.

    2,9s

    is how long it takes the 911 Turbo S Coupé to accelerate from zero to 100 km/h.

    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 engine with PDK transmission in the 718 Boxster S consumes 7.3 l/100 km. The 718 models feature 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 navi­gation module is available.

    7.3 litres

    is what the new 718 Boxster S (PDK) consumes in 100 kilometres.

    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 ­bi-xenon headlights with integrated LED daytime 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.

    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.

    600 hp

    or 440 kW is the system performance of the Mission E concept study.

    Research and Development Costs

    In the financial year 2015, research and non-­capitalised development costs (excluding amor­tisation 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 capitalisation ratio in financial year 2015 amounted to 55 percent.

    Emission and Consumption Data of the Newly Introduced Vehicles

    1) Versatility depending on the tyre set used

  • Sales, Production and Procurement

    Sales

    Professional Service

    Porsche After Sales serviced over 1.3 million vehicles worldwide in financial year 2015 following the successful launch of the Macan. Revenue from spare parts also rose significantly compared to the previous year. Internal structures were optimised in order to ensure the highest professional standards. The service was also extremely well positioned in China despite the economically slower year. Market activation measures were initiated as early as the beginning of the year to adequately address the volatile situation.

    Ground-breaking vehicle technology constantly presents new challenges for After Sales. Porsche supports the retail organisation with innovative concepts to manage the increasing complexity. The idea is to develop appropriate tools for garage shop media to ensure that customer vehicles are repaired efficiently. Experience has shown that a high level of dealer satisfaction also leads to a high level of customer satisfaction. 3D repair manuals for technicians at Porsche Centres were therefore issued for the first time with the new Cayman GT4 in financial year 2015. These are to gradually replace classic written manuals and have already been recognised by the KVD (Kundendienst-Verband Deutschland e.V.) with the “2015 Service Management Award”. Garage shop employees can use the comprehensive interaction options in the 3D PDFs to rotate, hide and zoom in on content in the “repair manual” themselves. This makes complex relationships and assembly positions for spare parts immediately identifiable to technicians and presents these in a clear, three-­dimensional format. However, this is only the first step towards augmented reality – the medium-term aim is to digitally integrate both workshop and customer media, such as the user manual, into the vehicle.

    Innovative service concepts ensure long-term customer satisfaction and thus loyalty. Many Porsche Centres all around the world successfully launched new services to provide an exciting premium experience. The underlying aim is to offer each customer individual and flexible service. The new offerings range from a valet service with a personalised greeting and parking assistance to a fast lane package with specific services as well as personalised gifts for a unique customer experience. The idea behind the gifts is to enable service consultants to surprise customers with a little something that relates to the topics discussed.

    Such experiences can only be provided by highly qualified employees. This is why Porsche also expanded After Sales Retail Development to provide retail with the best possible support for process changes. For instance, dealers around the world can now select the coaching modules best suited to them based on their needs. These modules already cover a wide range of after sales topics such as core service processes and after sales business management and help the Porsche Centres to optimise their business environment. Further coaching modules are already being developed. Overall, Porsche’s services are better positioned than ever before to offer customers a tailored and unique service experience.

    Many Repeat Loyal Customers

    Many Porsche owners are repeat loyal customers of the brand – rather than just buying one model, they are inspired by the brand time and again and own more than one Porsche. The high level of customer satisfaction is attributable to high product quality and exclusive customer service throughout the entire customer life cycle. This motivates us to continue to meet and exceed these high expectations in the future. One of Porsche’s goals is therefore to further expand customer service around the world. Porsche knows its customers’ needs better than virtually any other automotive manufacturer thanks to the CRM@Porsche (“C@P”) global customer service system. This enables Porsche to set international customer 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 ser­vice based on respect. Porsche rolled out a unique customer service model – the “72-hour satis­faction 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 professional partners at Porsche Centres around the world.

    The success of these customer service and customer satisfaction measures is confirmed by numberous international studies. For the eleventh time in a row, Porsche placed first overall in the Automotive Performance, Execution and Layout Study (APEAL) conducted by the renowned U.S.-based market research institution J.D. Power and Associates. In other words, Porsche is still the most attractive automotive brand for U.S. drivers. The Cayman, Cayenne and Macan models were once again voted best-in-class for their respective segments in the study. The annual survey is conducted on the basis of information provided by more than 84,000 new owners of well over 200 different models. Porsche also performed extremely well in the Sales Satisfaction Index (SSI) in the U.S. and was named the best premium brand. The SSI is also conducted every year by J.D. Power and evaluates how satisfied new car owners are with the purchase of their vehicle.

    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”.

    Best Cars 2015

    is a well-earned description of the Porsche 911 and the 911 Cabrio, with which Porsche masterfully topped the sports car and convertible categories.

    In the U.S., premier consumer advice magazine Kelley Blue Book presented the Porsche brand with four Brand Image Awards. Porsche was recognised in the “Best Overall Luxury Brand”, “Most Refined Luxury Brand”, “Best Performance Luxury Brand” and “Best Car Styling Luxury Brand” categories. The Cayenne S E-Hybrid received the award “Best Resale Value – Plug-In Vehicle”. This combines the brand’s classic strengths from a customer perspective with forward-looking hybrid technology. The customer 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.

    Production

    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.

    Volume of Vehicles Produced

    in units

    Changes to the Executive Board

    At the end of financial year 2015, the Supervisory Board of Porsche AG appointed Albrecht Reimold as the new member of the Executive Board for Production and Logistics, succeeding Oliver Blume. Reimold took up the new role on February 1, 2016. Blume has been Chairman of the Executive Board of Porsche AG since October 2015 and had been additionally responsible for Production 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.

    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 continuing existence of these sites. The package of measures will also boost the Company’s productivity, flexibility and efficiency and rules out redundancies until 2020.

    At the Zuffenhausen plant, around 400 million euro will be invested in a new body shell ­production facility and a good 80 million euro in a new engine plant. Porsche will also invest a two-digit million euro figure in establishing central workshops, a new pilot centre and in expanding the saddlery. As well as all 911 and 718 Boxsters, the 718 Cayman models will also roll off the line here from August 2016 following the expansion of the assembly line.

    The new engine plant will be opened in June 2016 and includes a state-of-the-art assembly line with logistics space and engine testing systems as well as offices and recreation rooms. Around 400 employees will work here over two storeys. The new plant is specially designed for the production 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.

    400

    employees have been working in the new engine plant in Zuffenhausen since June 2016.

    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 industrial zone. The master plan for the plant was assessed using 40 sustainability criteria. As well as top marks in the environmental, economic, technical and process quality categories, Porsche scored particularly well in workplace design.

    The decision made by the Company’s Supervisory Board at the end of the financial year to build Porsche’s first all-electric sports car signals the start of a new chapter in the history of the brand. Porsche is continuing to focus on sustainable growth with its Mission E project. The Company will invest around 700 million euro in Zuffenhausen alone to build a new paint shop and dedicated assembly facilities over the next few years. The existing engine plant will be upgraded for the production of electric drives and the body shell production facility will be expanded.

    700,000,000 Euro

    will be invested by Porsche in the Mission E project in Zuffenhausen alone.

    Innovative Ideas Implemented

    The production line for the 918 Spyder in Stuttgart-­Zuffenhausen was dismantled after the model reached its limit of 918 units in June 2015. Around 80 selected employees handcrafted the plug-in hybrid sports car at ten main stations and 21 pre-­assembly stations on an area of 4,000 square metres. Porsche had implemented a number of innovative ideas relating to assembly and quality assurance. In particular, the assembly line for the 918 Spyder met the highest ergonomic production 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 benchmarks for ergonomics and flexibility.

    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 Volks­wagen’s Bratislava plant.

    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.

    Logistical Backbone in Sachsenheim

    The central spare parts warehouse in Sachsenheim is Porsche’s logistical backbone. It is located 19 kilometres from the headquarters in Zuffenhausen. 100,000 spare parts and 35,000 development parts are handled over a storage space of 170,000 square metres. Over 400 employees process up to 23,000 tickets every day, from incoming orders through to dispatch. The specially developed tugger train concept ensures that operations run smoothly and on schedule. The tugger trains run continuously between the 46 stations on the plant grounds. Like all of the vehicles in the warehouse, even the tuggers are all-electric. The location generates its own energy. 8,500 photovoltaic modules over an area of 40,000 square metres provide around two million kilowatt-hours of electricity every year. The location also has its own combined heat and power plant.

    New Toolmaking Division

    The sports car manufacturer acquired the toolmaking 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 Werkzeugbau GmbH’s locations in Schwarzenberg in the German state of Saxony and Dubnica in Slovakia strengthen the Company’s expertise, especially in the production of complex aluminium parts. The subsidiary specialises in method planning, engineering design, toolmaking and systems solutions for forming and cutting tools in the automotive sector. It has already built tools for the side panels of Porsche’s Panamera and Macan models.

    Customers Vouch for Premium Quality

    The Porsche brand enjoys an excellent reputation in the leading markets of the U.S., China and Europe. According to U.S.-based market research institution J.D. Power, the sports car manufacturer 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 vehicle comfort. The Porsche 911 was ranked highest by U.S. customers for the fourth consecutive year and received the J.D. Power Award for the vehicle with the highest customer satisfaction in the “Midsize Premium Sporty Car” segment. The Boxster also proved a recipe for success in the year under review: for the third time in a row, the mid-engined roadster placed first in the “Compact Premium Sporty Car” segment, followed directly by the mid-engined Cayman Coupé.

    Porsche was ranked the top premium automotive brand by Chinese buyers. The Macan took first place in the mid-range premium SUV category in the “2015 China Initial Quality Study” (IQS). The study is based on feedback from around 21,700 Chinese new car owners who purchased vehicles between October and June 2015.

    Procurement

    Porsche AG added attractive vehicle projects to its product range in financial year 2015. For instance, procurement successfully ramped up ambitious projects such as the 911 GT3 RS, the Cayman GT4, the Boxster Spyder and the latest 911 generation with turbo engines thanks to close cooperation with our supplier partners.

    An additional highlight over the past year was the stellar motorsport season. Porsche claimed all of the World Endurance Championship titles and celebrated a double victory at Le Mans. The brand’s winning finish to the season once again underscored Porsche’s successful year. Procurement brought the right partners for our motorsport strategy on board in collaboration with all of the departments involved.

    Procurement of Production Materials

    As in years past, the cost of materials per vehicle was optimised in ­financial year 2015. Long-term cost savings were achieved through close cooperation with and the early involvement of our business partners in various cost-focused and product workshops. In 2015, Porsche AG’s cost of materials came to 3,948 million euro (financial year 2014: 3,608 million euro).

    Procurement of Non-production Materials

    Procurement played a key role in achieving the Company’s targets in the reporting period, including with respect to non-production materials and services. As in the previous year, capital expenditure in financial year 2015 was once again very high at 1,261 million euro (financial year 2014: 1,374 million euro).

    Ensuring Product Quality

    The Company’s focus in the past year was again on achieving optimal purchased parts quality for all models. In 2015, procurement therefore expanded and fine-tuned the initiative to optimise its sub-supplier management system, which was launched in financial year 2014. The improved transparency enabled the Company to identify risks at an early stage and continue to optimise long-term quality. The various ­quality awards that Porsche received in 2015 were also a reflection of this feedback from our customers.

    Stable Supply Situation for Procured ­Components

    Porsche AG delivered 225,121 vehicles to customers in the past financial year, a new record for the Company. Procurement ensured that all vehicles were supplied at all times.

    Mission E – The Future of Porsche

    The Supervisory Board’s endorsement of the electric vehicle presented at the IAA as Mission E makes Porsche’s ambitions for the future clear. The aim is to refine Porsche’s unmistakable DNA and to master the challenges posed by Mission E. This applies in particular to procurement, which will work together with new suppliers from other areas, such as the consumer industry, which have no experience in the automotive sector. In addition, measures must be taken to ensure that charging infrastructure is widely available.

    Employee Satisfaction Within Procurement

    Motivated, satisfied employees were the foundation 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.

    Sustainability Within Procurement

    Sustainability and value-added growth do not have to be mutually exclusive. An initiative to harmonise and implement sustainability prin­ciples among automotive manufacturers along the supply chain was launched to create an overarching standard.

    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 relationship with Porsche AG.

Financial Statements

  • Financial Analysis

    Net Assets, Financial Positions and Results of Operations

    Net Assets

    As of December 31, 2015, the total assets of the Porsche AG Group stood at 29,143 million euro, 12 percent higher than on the prior-year reporting date.

    Non-current assets increased by 1,767 million euro to 21,548 million euro. The increase relates mainly to fixed assets and to deferred taxes. Non-­current assets expressed as a percentage of total assets amounted to 74 percent (prior year: 76 percent).

    Sales Revenue

    in million euro

    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 equity investments – came to 11,009 million euro, compared with 9,691 million euro in the previous year.

    Fixed assets expressed as a percentage of total assets increased to 38 percent (prior year: 37 percent). Intangible assets increased from 2,953 million euro to 3,286 million euro. The increase mainly relates to capitalised development 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 equipment, 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.

    Net Assetsof the Porsche AG Group

    Non-current other financial assets increased by 137 million euro, primarily as a result of ­currency effects relating to the derivative financial instruments.

    Deferred tax assets amounted to 727 million euro compared with 562 million euro in the prior year.

    As a percentage of total assets, current assets amount to 26 percent compared to 24 percent in the prior year. Inventories increased from 2,157 million euro in the prior year to 2,509 million euro at the end of the reporting period. In comparison to the prior reporting date, there was an increase of approximately 5,400 units in new vehicle inventories.

    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.

    Current other financial assets increased slightly by 42 million euro to 1,000 million euro. The decrease in current derivative financial instruments was countered by a slightly higher balance on the clearing account with Porsche Holding Stuttgart GmbH.

    Cash and cash equivalents increased significantly year on year, climbing by 925 million euro to 2,485 million euro.

    The equity of the Porsche AG Group increased by 1,101 million euro to 10,700 million euro compared with the prior-year reporting date. The profit after tax, profit transfer and dividends of 430 million euro together with currency translation differences, revaluations from pension plans and a capital contribution by Porsche Holding Stuttgart GmbH amounting to 707 million euro generated increases in equity. By contrast, the changes in the cash flow hedge reserve in the amount of 307 million euro after tax represented reductions in equity.

    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 euro. This decrease primarily reflects the change in the remaining maturity of a bond in the amount of 1,000 million euro classified as non-current in the prior year.

    Provisions for pensions and similar obligations remained unchanged as against the prior year, at 2,361 million euro.

    Non-current other financial liabilities recorded growth of 395 million euro. The increase mainly relates to marking derivative financial instruments to market.

    Current liabilities increased significantly from 8,511 million euro to 10,971 million euro. Current liabilities expressed as a percentage of total capital rose from 33 percent in the prior year to 37 percent as of December 31, 2015. Current financial liabilities grew by 884 million euro. This increase primarily reflects the change in the maturity of a bond in the amount of 1,000 million euro.

    Deferred tax liabilities amounted to 749 million euro compared with 684 million euro in the prior year.

    Trade payables increased to 2,214 million euro after 1,856 million euro in the previous year. This increase is attributable to higher volumes of investments and business.

    Current other financial liabilities amounted to 3,127 million euro (prior year: 2,058 million euro). The increase mainly relates to marking derivative financial instruments to market.

    Financial Position

    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.

    Cashflow

    from current business activities in million euro

    The cash flows from investing activities resulted in a cash outflow of 2,119 million euro in the reporting 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.

    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 contribution amounting to 707 million euro (prior year: 829 million euro) made by Porsche Holding ­Stuttgart GmbH.

    The net available liquidity of the automotive division – i.e. its gross liquidity less financial liabilities and excluding the financial services business in each case – improved from 195 ­million euro as at December 31, 2014 to 1,456 million euro as at December 31, 2015.

    Results of Operations

    The Porsche AG Group’s profit after tax increased by 134 million euro from 2,201 million euro in the corresponding prior-year period to 2,335 million euro in the reporting period. The tax rate in the reporting period was 31 percent (prior year: 28 percent).

    Group revenue of the Porsche AG Group was 21,533 million euro in the reporting period (prior year: 17,205 million euro). In the past financial year, the Porsche AG Group sold 218,983 vehicles. This corresponds to an increase in unit sales of 17 percent compared to the prior year. The principal contribution to the growth in sales volume and revenue was made by the new Macan model with 81,383 vehicles sold. Sales of the Panamera series declined by 6,999 to 15,473 vehicles due to a change of model.

    The cost of sales increased in line with revenue to 15,441 million euro (prior year: 12,885 million euro), which represents 72 percent of revenue (prior year: 75 percent). The increase in the gross margin from 25 to 28 percent mainly results from the increase in revenue due to exchange rate effects. In absolute terms, the cost of sales rose by 2,556 million euro or 20 percent. This increase is additionally due to higher research and development costs recognised in the income statement, with a simultaneous decrease in the capitalisation rate to 48 percent (prior year: 55 percent).

    Distribution expenses rose from 1,257 million euro to 1,505 million euro due to the higher ­volume of sales. Administrative expenses ­increased from 789 million euro to 908 million euro. Distribution expenses remained un­changed in relation to revenue at 7 percent, while administrative expenses fell slightly to 4 percent.

    The personnel expenses contained across all functions of the Porsche AG Group increased from 2,165 million euro to 2,605 million euro. The average number of employees during the year rose by 2,238 to 23,541.

    Results of Operationsof the Porsche AG Group

    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 depre­ciation of tools that are recognised under other equipment, furniture and fixtures.

    Other operating income rose from 895 million euro to 1,286 million euro. The increase is mainly attributable to increased income from the reversal 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.

    Operating profit amounted to 3,404 million euro, an increase of 685 million euro in comparison with the previous year.

    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 trans­actions that are not included in hedge accounting. In addition, in the prior year this item included income of 271 million euro relating to the change of accounting for the investment in Bertrandt AG using the equity method.

    The healthy cost structure and the sustainably high earnings power of the Group are also reflected in the key performance indicators. The Porsche AG Group achieved an operating return on sales of 16 percent in the past financial year (prior year: 16 percent). The pre-tax return on sales was 16 percent (prior year: 18 percent). The return on capital, defined as the ratio of the operating result after tax to the average invested assets of the automotive division, amounts to 31 percent (prior year: 27 percent). The post-tax return on equity was 23 percent (prior year: 24 percent).

  • Financial Data

    Summary of the Consolidated ­Financial Statements of
    Porsche AG Without the Notes

    Consolidated Income Statementof Porsche AG for the period January 1 to December 31, 2015

    Consolidated Statement of Comprehensive Incomeof Porsche AG for the period January 1 to December 31, 2015

    Consolidated Statement of Financial Positionof Porsche AG as of December 31, 2015

    Consolidated Statement of Cash Flowsof Porsche AG for the period January 1 to December 31, 2015

    Consolidated Statement of Changes in Equityof Porsche AG for the period January 1 to December 31, 2015