Financial Analysis


As of 31 December 2018, the total assets of the Porsche AG Group stood at € 38,159 million, 9 per cent higher than on the prior-­year reporting date.

Non-current assets increased by € 1,761 million to € 27,008 million. The increase primarily related to fixed assets and deferred taxes, while other financial assets in particular saw a decline. Non-current assets expressed as a percentage of total assets amounted to 71 per cent (prior year: 72 per cent).

At the end of the reporting period, the fixed ­assets of the Porsche AG Group – i.e., the ­intangible assets, property, plant and equipment, leased assets, equity-accounted ­investments and other financial assets – amounted to € 16,099 million, compared with € 14,404 million in the previous fiscal year.

Fixed assets expressed as a percentage of ­total assets increased to 42 per cent (prior year: 41 per cent). Intangible assets increased from € 4,646 million to € 4,929 million. The ­increase relates on the one hand to capitalized development costs, with the largest additions concerning the 911 and Taycan model lines. On the other hand, additions to acquired licenses and advanced payments made also caused an increase. Property, plant and equipment ­increased in comparison with the prior year by € 1,025 million to € 6,928 million, ­primarily due to additions to land and buildings, 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 € 321 million in comparison with the prior year, to € 3,776 ­million. This item contains vehicles leased to customers under operating leases.

Non-current other financial assets decreased by € 505 million to € 8,398 million. The decrease was due to the marking-to-market of derivative financial instruments.

Deferred income tax assets amounted to € 730 million as against € 370 million in the prior year.

As a percentage of total assets, current ­assets amounted to 29 per cent compared with 28 per cent in the prior year. Inventories ­increased from € 3,051 million in the prior year to € 3,889 million at the end of the ­reporting period.

Non-current and current receivables from ­financial services rose from € 2,095 million to € 2,386 million. This item mainly comprises ­receivables from finance leases and receivables from customer and dealer financing.

Current other financial assets increased by € 451 million to € 2,292 million. The increase mainly relates to the clearing account with Porsche Holding Stuttgart GmbH, receivables from loans to VW Group companies, and ­receivables from allocations to the consolidated VAT group in the amount of € 569 million. By contrast, the marking-to-market of derivative financial instruments resulted in a ­decrease of € 150 million.

Cash, cash equivalents and time deposits ­decreased by € 432 million year on year to € 2,635 million.

The equity of the Porsche AG Group increased by € 1,277 million to € 16,477 million compared with the prior-year reporting date, and includes an offsetting effect in the total amount of € 7 million due to the initial application of new accounting standards IFRS 9 and IFRS 15. The profit after tax, remeasurements from pension plans net of tax, profit transfer and dividends of € 785 million together with currency translation differences of € 68 million and a capital contribution by Porsche Holding Stuttgart GmbH amounting to € 1,208 million generated increases in equity. By contrast, the € 782 million change in the hedge reserve after tax was recognized as a decrease in ­equity.

Non-current liabilities relate to financial liabi­lities, pension provisions, deferred income tax liabilities, other financial liabilities, other ­liabilities, and other provisions. They rose by € 581 million to € 9,665 million in comparison with the prior year. As of the end of the fiscal year, non-current liabilities expressed as a ­percentage of total capital remained level with the ­prior-year figure of 26 per cent.

Provisions for pensions and similar obligations increased by € 326 million, mainly due to a rise in the number of eligible employees.

Non-current other financial liabilities recorded growth of € 96 million. This increase relates mainly to the marking-to-market of derivative financial instruments.

Deferred income tax liabilities amounted to € 650 million compared with € 614 million in the prior year.

Current liabilities increased from € 10,735 million to € 12,017 million, while expressed as a percentage of total capital they remained unchanged against 31 December 2017, at 31 per cent as of the end of the fiscal year.

Non-current and current financial liabilities rose from € 5,457 million to € 6,043 million. The increase primarily resulted from refinancing the financial services business in the form of asset-backed securities and bank loans.

Trade payables increased to € 3,134 million after € 3,048 million in the previous year. This increase is attributable to higher volumes of investments and business.

Current other financial liabilities amounted to € 3,441 million (prior year: € 3,060 million). This was primarily due to the change resulting from the marking-to-market of derivative ­financial instruments (€ 159 million) and a € 133 million increase in the profit transfer ­liability to Porsche Holding Stuttgart GmbH.


Net assets
  • 1) The prior-year figures were restated


Cash flows from operating activities amounted to € 3,845 million in the 2018 reporting period following € 4,069 million in the prior year. The material effects resulted from increased profit and higher depreciation, amortization and write-downs on the one hand, and higher income tax payments, non-cash income and expenses and higher outflows for inventories on the other.

The cash flows from investing activities ­resulted in a cash outflow of € 3,566 million in the reporting period following € 3,140 million in the prior year. Investments in intangible ­assets (excluding capitalized development costs) and property, plant and equipment increased from € 1,762 million in the previous year to € 2,093 million in the period under ­review. ­Additions to capitalized development costs amounted to € 1,064 million following € 1,337 million in fiscal year 2017.

There was a change in cash flows from financing activities from € -744 million in the prior year to € -606 million in the current fiscal year.

Payments made in respect of profit transfer and dividends resulted in a cash outflow of € 2,157 million (prior year: € 2,371 million). This was partly offset by capital contributions amounting to € 1,208 million (prior year: € 1,312 million) made by Porsche Holding Stuttgart GmbH.

The net available liquidity of the Automobile sub-group – i.e., its gross liquidity less financial liabilities and excluding the financial services business in each case – improved from € 2,231 million as of 31 December 2017 to € 2,306 million as of 31 December 2018.



The Porsche AG Group’s profit after tax increased by € 102 million from € 3,016 million in the corresponding prior-year period to € 3,118 million in the current fiscal year. The tax rate in the reporting period was 32 per cent (prior year: 25 per cent).

Consolidated revenue at the Porsche AG Group amounted to € 25,784 million in the reporting period (prior year: € 23,491 million). The ­Porsche AG Group sold 243,054 new vehicles in the past fiscal year. This corresponds to an increase in unit sales of 2 per cent compared with the prior year. The primary contribution to the growth in sales volume and revenue was made by the Cayenne model line, which recorded an increase of 13,440 to 70,146 new vehicles. The Macan remains the best-­selling model line, with 82,244 new vehicles sold. However, a change of model caused unit sales to decrease by 13,296 new vehicles in the fiscal year. In regional terms, China ­remained the largest market, with new vehicle sales totaling 79,370 units. Unit sales grew by 12 per cent there in the fiscal year. In addition, the North American market recorded growth this year, with unit sales of 66,801. This corresponds to 3 per cent growth in unit sales.

The cost of sales increased in line with ­revenue to € 18,629 million (prior year: € 16,688 million), which represents 72 per cent of sales revenue (prior year: 71 per cent). In ­absolute terms, the cost of sales rose by € 1,941 million or 12 per cent. This slightly disproportionate increase is due to higher ­research and development costs recognized in the income ­statement. The capitalization ­ratio for research and development costs amounted to 49 per cent (prior year: 58 per cent). The slightly ­disproportionate increase in cost of sales caused the gross margin to ­decrease from 29 to 28 per cent.

Distribution expenses rose from € 1,856 million to € 1,901 million due to the higher unit sales. Administrative expenses also increased slightly, from € 1,028 million to € 1,103 million. In relation to sales revenue, distribution expenses decreased slightly to 7 per cent ­(prior year: 8 per cent), while administrative expenses remained level at 4 per cent (prior year: 4 per cent).

The personnel expenses across all functions of the Porsche AG Group increased from € 3,200 million to € 3,613 million. The growth in ­personnel expenses is primarily due to the rise in the average number of employees during the year by 2,058 to 31,091.

Depreciation, amortization and impairment across the functions increased to € 2,567 million compared with € 2,276 million in the ­prior year. This primarily relates to the depreciation, amortization and impairment of ­capitalized development costs and property, plant and equipment.

Other operating income decreased from € 1,142 million to € 813 million. This was ­primarily due to changes in the presentation of gains on currency hedges. From 2018 ­onwards these are recognized in sales revenue due to the initial application of IFRS 9. Other operating expenses declined from € 917 million to € 675 million. As with other operating income, the decrease in other operating ­expenses is due to changes in the presentation of losses on currency hedges.

Operating profit amounted to € 4,289 million, an increase of € 145 million in comparison with the previous year.

The financial result amounted to € 263 million (prior year: € -98 million). The increase in the financial result was due on the one hand to higher gains from fair value measurement relating principally to exchange rate and interest rate hedging transactions that are not ­included in hedge accounting. On the other hand, the financial result was boosted by shifting recognition of the fair value component of currency hedges from the financial result to the operating result in fiscal year 2018 (initial application of IFRS 9 – Financial Instruments).

The healthy cost structure and the sustainably high earnings power of the Group are also ­reflected in the key performance indicators. The Porsche AG Group generated an operating return on sales of 16.6 per cent in the past ­financial year (previous year: 17.6 per cent). The pre-tax return on sales amounted to 17.7 per cent (previous year: 17.2 per cent). The return on capital, defined as the ratio of the operating result after tax to the average invested assets of the Automobile sub-group, amounted to 24.5 per cent (previous year: 28.2 per cent). The return on equity after tax was 19.7 per cent (previous year: 22.2 per cent).

Results of operations
  • 1) The prior-year figures were restated due to the initial application of new accounting standards “IFRS 9 – Financial Instruments” and “IFRS 15 – Revenue from Contracts with Customers”