Dr. Ing. h.c. F. Porsche AktiengesellschaftStuttgartHalbjahresfinanzbericht nach WpHG zum Geschäftsjahr vom 01.01.2022 bis zum 30.06.2022The condensed interim consolidated financial statements
as of June 30, 2022, comprising the consolidated income
statement, consolidated statement of comprehensive income,
consolidated statement of financial position, consolidated
statement of changes in equity, consolidated statement of
cash flows as well as selected explanatory notes - and the
interim group management report for the period from January
1 to June 30, 2022 have neither been audited in accordance
with Section 317 of the German Commercial Code (HGB) nor
subject to a review by a person qualified to audit
financial statements.
Interim Group Management Report Fundamental information about the groupFor the interim group management report for the period
from January 1 to June 30, 2022, there were no extended
reporting requirements as applicable for
capital-market-oriented entities. Dr. Ing. h.c. F. Porsche
Aktiengesellschaft ("Porsche AG") has voluntarily made
selected disclosures required for capital-market-oriented
entities.
BUSINESS MODELPURPOSE OF THE COMPANYPorsche AG is one of the world's most successful luxury
automotive manufacturers. We believe that its iconic brand
is synonymous with design and enginnering heritage,
prestige, performance, innovation, quality, technological
achievement, reliability as well as modern and sustainable
luxury. In addition, we also offer customized financing
products.
LEGAL STRUCTUREPorsche AG is a German stock corporation
(Aktiengesellschaft), which has its registered office in
Stuttgart.
Porsche AG's subscribed capital is held in full by
Porsche Holding Stuttgart GmbH and a control and profit and
loss transfer agreement is in place between the two
entities. In turn, Volkswagen Aktiengesellschaft
("Volkswagen AG", and together with its consolidated
subsidiaries, the "Volkswagen Group") holds 100% of the
share capital of Porsche Holding Stuttgart GmbH and is thus
the ultimate parent company of Porsche AG.
OPERATIONAL STRUCTURE, PROCUREMENT AND SALESPorsche AG and its fully consolidated subsidiaries ("the
Porsche AG group") consist of the automotive and financial
services segments. Alongside the headquarters of the
Porsche AG group, the manufacturing facilities for the
Taycan, 911 and 718 model series as well as customer sports
vehicles from Porsche Motorsport are also located in
Stuttgart-Zuffenhausen. The Porsche AG group also maintains
manufacturing facilities in Leipzig, where the Macan and
Panamera model series are produced. The Cayenne model
series is produced at the Volkswagen Group's multi-brand
site in Bratislava, Slovakia. In addition, the Cayenne
model series is also assembled at a third-party assembly
facility in Kulim District, Kedha, Malaysia. Weissach hosts
the Porsche Research and Development Center, where Porsche
vehicles are developed from first sketch to series
production.
The Porsche AG group operates active supply chain and
spare parts management supported by long-term contracts
with longstanding partners.
The Porsche AG group sells its models via a network of
more than 900 Porsche Centers in more than 120 countries.
Global [automotive] sales are broken down into five
regions: [Germany, North America, China, Europe (without
Germany) and Rest of the World.
The financial services segment includes the leasing
business, dealer and customer financing, service and
insurance brokerage business as well as mobility services
for vehicles of the Porsche brand.
PRODUCTS AND SERVICESThe Porsche AG group focuses on high-quality and
exclusive products, electromobility and sustainability. The
sports car manufacturer is bringing forward its history and
motorsport DNA into the future and in doing so seeks to
redefine the term modern luxury.
Porsche is a global and iconic brand - sporty, exclusive
and sought-after. At the same time, the Porsche AG group
also benefits from economies of scale and a higher volume
compared to niche manufacturers from the luxury sports car
segment. We believe that our position in this sweet spot in
the automotive industry makes the Porsche AG group unique
and opens up opportunities for structural growth.
With our passion for design, performance and the highest
quality, we make the dreams of sports car fans around the
world come true. These offerings include the legendary 911,
the mid-engine sports car the 718, the Taycan, the Group's
first luxury all-electric sports car, the elegant Panamera
and the luxury SUVs the Cayenne and Macan. In addition, we
also offer traditional as well as tailor-made financing
solutions to help make our customers' dream of owning a
luxury sports car come true.
STRATEGIC DIRECTION OF THE PORSCHE AG GROUPWe are aiming to further expand our strong position as a
manufacturer of exclusive sports cars with a robust
financial track record, in particular by systematically
implementing our strategy. The strategic direction of the
Porsche AG group consists of the crosscutting strategies
Customer, Products, Sustainability, Digitalization,
Organization and Transformation. They form the center of
the Porsche strategy and feed into the Porsche AG group's
corporate goals. Cross-functional teams progress the six
topics, each of which is overseen by two Executive Board
members.
THE "CUSTOMER" CROSS-CUTTING STRATEGYThe "Customer" cross-cutting strategy focuses on the
relationship with our customers. Customer experiences in
conjunction with fascinating driving experiences should
further boost customer loyalty and attract new audiences to
the Porsche brand. Omni-channel sales and the development
of a strong Porsche community are designed to connect
customers with the brand online and in the physical world.
THE "PRODUCTS" CROSS-CUTTING STRATEGYSince Porsche AG was founded, Porsche customers have
been able to expect perfection, precision and technological
progress. This also includes constantly enhancing products
and offerings and shaping the progress of challenging
mobility.
In this regard, electromobility is at the heart of the
Porsche strategy. We view ourselves as a pioneer in this
area and have the ambition for more than 80% of the new
vehicles we deliver in 2030 to be fully electric. This aim
is underpinned by a detailed product roadmap.
The Porsche AG group currently offers its customers
three drive systems: Electric, hybrid and combustion
("ICEs"). We also view synthetic fuels (e.g., e-fuels) as
potentially playing a further important role in the
decarbonization of ICEs in the existing fleet.
We have a particular focus on the customer demands of
the future and have aligned our product strategy
accordingly with digital, connected and innovative products
and services. In addition to the core business, individual
mobility solutions and financial services should contribute
to growth and the Porsche AG group's profitability.
In March of 2022, Porsche AG announced plans to build a
Porsche proprietary charging network in Europe, with first
stations planned to open in 2023 and up to 100 stations
planned overall. In addition, we also expect to remain an
active partner in "IONITY" and therefore took part in a
further round of financing for this joint venture in the
first half of 2022. Currently, IONITY operates a network of
some 400 charging stations around Europe. By 2025, this is
expected to expand to more than 1,000 stations.
The Porsche AG group made its first investment in the
Rimac Group d.o.o., a provider of electrified vehicle
technology, in 2018 and has successively increased its
stake in the group. This investment not only benefits us
from a financial perspective on account of the increased
valuation. The close cooperation should also create added
value for the Porsche AG group in respect of technology and
innovative capacity.
As a further step in its electric strategy, the Porsche
AG group is investing an amount in the low triple-digit
million range in Cellforce Group GmbH, a provider of
high-performance battery cells for special automotive
applications, and in which the Porsche AG group is a
partner. [The aim is to reach an initial annual capacity of
at least 100 MWh. This corresponds to high-performance
battery cells for around 1,000 vehicles.
THE "SUSTAINABILITY" CROSS-CUTTING STRATEGYThe Porsche AG group aims to help shape the sustainable
future of mobility. This also includes products that are
developed taking into account sustainability aspects,
however this also of course includes being a modern
employer that is open to society.
The "Sustainability" cross-cutting strategy therefore
pursues a holistic approach covering everything from
environmental and social aspects to responsible corporate
governance. Decarbonization and maintaining a circular
economy along the entire value chain are key. The Porsche
AG group promotes diversity of views and focuses on making
a commitment to society. The Porsche AG group also promotes
sustainability in the supply chain as well as transparent
and responsible corporate governance. We have the ambition
of having a net carbon neutral value chain in 2030,
including an ambition that all new battery electric vehicle
models (BEVs) be net carbon neutral across the value chain
from launch. In 2025, the Porsche AG group aims for more
than half of all new vehicles delivered to be electrified,
and for more than 80% of new vehicles delivered in 2030 to
be fully electric.
In October 2021, the Porsche AG group was once again
awarded Prime status by the rating agency ISS ESG and
improved its prior-year rating of ("C+") to "B-". Prime
status is awarded to companies with an ESG performance
above the sector-specific Prime threshold, which means that
they fulfill ambitious performance requirements. The sports
car manufacturer has set itself the goal of being
classified as one of the leading companies in the
automotive industry in this rating.
THE "DIGITALIZATION" CROSS-CUTTING STRATEGYThe "Digitalization" cross-cutting strategy focuses on
the efficient use of the company's own competencies as well
as collaboration within the Volkswagen Group and with
external partners. Shortening the time to market for new
products and business models, an open-platform strategy and
the use of artificial intelligence and data-driven
optimizations should make a major contribution to the
success of the business.
THE "ORGANIZATION" CROSS-CUTTING STRATEGYThe "Organization" cross-cutting strategy addresses the
organizational alignment and optimization of the vertical
integration of the Porsche AG group to optimally prepare it
for future requirements. Processes should be made as
effective and as efficient as possible. At the same time,
the Porsche AG group is also defining strategic value
creation fields which will be developed internally or by
external suppliers in the future. This is also closely
related to decisions on strategic partnerships, which will
become ever more relevant in the future. New structures and
concepts are being worked on for this purpose.
THE "TRANSFORMATION" CROSS-CUTTING STRATEGYThe focus of the "Transformation" cross-cutting strategy
is on people. They are to be provided with new ways and
methods of working. Leadership has an important part to
play when it comes to getting employees on board: They
should be notified about changes promptly and be involved
in processes to allow them to jointly expedite
transformation. Long-term thinking and business-minded
actions are supported here. The aim is to maintain and
expand the company's position as a top employer with high
levels of employee satisfaction.
Our strategies are setting the course, along which the
Porsche AG group wants to expand its position for current
and future generations. The focus here is on the four
stakeholder groups: customers, society, employees and
investors. From our perspective, the unwavering focus on
the needs of these groups will ensure sustainable growth
for the Porsche AG group.
EMPLOYEESIn the reporting period, an average of 37,460 employees
worked towards achieving these targets, of which 33,366
were based in Germany.
RESEARCH AND DEVELOPMENTSince Porsche AG was founded, it has been our ambition
to offer fascinating driving experiences for exacting
customers. Targeted research and development activities
drive vehicles innovation from concept development to
finished prototypes. Research and development plays a key
role for sustainable value enhancement in the Porsche AG
group. In addition, the cross-brand development network in
the Volkswagen Group makes a significant contribution to
strengthening the Porsche AG group's future viability.
In the first half of 2022, the Porsche AG group spent
more than €1.30 billion on research and development
(without amortization) (R&D) compared to approximately
€1.26 billion in the prior-year period. The ratio of
R&D to sales revenue stood at 7.9% (prior year: 8.3%).
Investment in capitalized development costs stood at
€985 million and was thus significantly above the
comparable figure in 2021 (€784 million). The increase
was driven primarily by rising expenses for projects that
are close to production.
Consequently, the capitalization ratio rose from
approximately 63% in the half-year period 2021 to
approximately 76% in the half-year period. Overall, as of
June 30, 2022, the Porsche AG group employed more than
6,700 persons in the areas of research and development. The
expenses recorded in the area of research and development
relate exclusively to the automotive segment.
In the reporting period R&D expenses were mainly
attributable to the transition of the product range to
electromobility. After the extremely successful market
launch of the first fully-electric model series the Taycan,
the focus is now on the development of a fully-electric
Macan, 718 and Cayenne.
In 2022, a further research unit of the Porsche AG group
will start operations in Shanghai. The location in Shanghai
should strengthen the level of understanding of Chinese
customers and knowledge of their particular requirements.
It supplements Porsche Digital China, which was founded at
the start of 2021, and Porsche Engineering China, founded
in 2014.
In parallel to the extensive efforts being made in the
area of e-mobility, combustion/hybrid technology such as
what is currently being considered for the 911, the
Panamera and the Cayenne is also being systematically
enhanced.
KEY PERFORMANCE INDICATORSMOST IMPORTANT KEY PERFORMANCE INDICATORSFor fiscal year 2022, the following performance
indicators have been defined:
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SALES REVENUEThe sales revenue of the Porsche AG group primarily
consists of automotive sales and reflects the group's
market success. Alongside the automotive segment, the
financial services segment also contributes to the growth
of sales revenue. This segment includes the leasing
business, dealer and customer financing, service and
insurance brokerage business as well as mobility services
for vehicles of the Porsche brand.
RETURN ON SALESThe return on sales of the Porsche AG group is defined
as the ratio of group operating profit to group sales
revenue. The Executive Board of Porsche AG uses return on
sales to measure the operating profitability of the Porsche
AG group.
AUTOMOTIVE NET CASH FLOWAutomotive net cash flow is defined as cash flows from
operating activities of the automotive segment less cash
flows from investing activities of current operations of
the automotive segment. The investing activities of current
operations exclude the changes in investments in
securities, loans and time deposits of the Automotive
segment.
OTHER PERFORMANCE INDICATORSFor fiscal year 2022, the following other performance
indicators have been defined:
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DELIVERIESThe performance indicator "deliveries" reflects the
number of vehicles handed over to end customers. This may
take place via group companies or independent importers and
dealers. In the Porsche AG group, this differs from unit
sales as a relevant driver of sales revenue. Unit sales in
the Porsche AG group are designated as those sales of new
and group used vehicles of the Porsche brand, which have
left the automotive segment for the first time, provided
there is no legal repurchase obligation by a company in the
automotive segment.
AUTOMOTIVE BEV SHAREThe definition of the automotive BEV share is the
proportion of purely battery-powered electric vehicles
(BEV) in relation to deliveries, i.e., the total number of
vehicles delivered to end customers. The driver for the
automotive BEV share is the sale of all-electric vehicles
(only the Taycan model in fiscal year 2022).
AUTOMOTIVE NET LIQUIDITYAutomotive net liquidity is defined as the total of cash
and cash equivalents, securities, loans and time deposits
net of third-party borrowings (non-current and current
financial liabilities) of the automotive segment. The
Porsche AG group is of the opinion that net liquidity in
the automotive segment is an informative financial ratio as
it represents the excess funds from operating activities
for dividend payments.
AUTOMOTIVE EBITDAAutomotive EBITDA is defined as automotive operating
profit before depreciation/amortization and impairment
losses/reversals of impairment losses on property, plant
and equipment, capitalized development costs and other
intangible assets, each in the automotive segment.
AUTOMOTIVE EBITDA MARGINAutomotive EBITDA margin is defined as the ratio of
Automotive EBITDA (as defined above) to Automotive sales
revenue. The Porsche AG group believes that Automotive
EBITDA and the Automotive EBITDA margin are meaningful
financial measures to evaluate the operating performance of
the Porsche AG group over time. The Porsche AG group
believes the presentation of Automotive EBITDA and
Automotive EBITDA margin provides useful information on how
the automotive segment has developed in its markets and
enhances the ability of its investors to compare its
profitability over time.
AUTOMOTIVE RESEARCH AND DEVELOPMENT COSTSThe Porsche AG group's research and development costs
comprise a range of expenses, from futurology through to
the development of marketable products. These include
research costs and non-capitalizable development costs as
well as investments in development costs that have to be
capitalized, each in the automotive segment. Amortization
of development costs is not a component of research and
development costs.
AUTOMOTIVE CAPITAL EXPENDITUREAutomotive capital expenditure is defined as additions
(cost) to intangible assets (excluding capitalized
development costs), and to property, plant and equipment
(excluding right-of-use assets) in the automotive segment.
AUTOMOTIVE / FINANCIAL SERVICES OPERATING PROFIT The
operating profit is earnings before the financial result
and income tax income/expense for the automotive or
financial services segment respectively (EBIT).
Economic environment and business development of the groupMACROECONOMIC AND SECTOR-SPECIFIC ENVIRONMENTThe Russia-Ukraine conflict led to increased uncertainty
in respect of developments in the global economy and has
prompted large sections of the community of Western states
to impose sanctions on Russia and Belarus, including
extensive trade embargoes and the exclusion of Russia from
the global financial system. The resulting higher commodity
prices and supply shortages are reinforcing the threat of
persistently high inflation.
In the first half of 2022, the restrictive measures put
in place to protect the population from the SARS-CoV-2
coronavirus were lifted to a large extent in many
countries. The progress made by many countries in
administering vaccines to their populations had a positive
effect, while the emergence of the new Omicron variant and
its subvariants led to renewed sharp rises in infections on
a national scale, mostly causing milder symptoms but
increased rates of sick leave.
Following the slump in global economic output in 2020
and the incipient recovery in the subsequent year, economic
growth in both advanced economies and the emerging markets
remained on course for recovery, albeit with diminishing
momentum. At the national level, developments in the
reporting period depended, on the one hand, on the scale of
the negative impact of the Covid-19 pandemic and the
intensity with which measures were taken to contain it,
and, on the other, on the extent to which national
economies were affected by the consequences of the
Russia-Ukraine conflict.
In response to the further rise of inflation rates
around the world, many countries shifted to a more
restrictive monetary policy, which led central banks to
increase their key interest rates and reduce bond purchases
during the reporting period. The resulting recession fears
caused major losses on key stock markets in the first half
of the year. Prices for energy and other commodities rose
significantly year on year and shortages of intermediates
and commodities remained high.
In the reporting period, the economies in Western Europe
recorded positive growth compared to the prior-year period
with slowing momentum. Simultaneously, national and
cross-country inflation rates rose significantly over the
course of the first half of the year, which had a negative
impact on the consumer sentiment.
Germany recorded positive economic growth in the
reporting period. Compared to the prior-year period, the
unemployment rate in Germany was down on average and the
number of employees on Kurzarbeit (government subsidized
short-time working) continued to decrease following the
high levels of the prior years. At the same time, monthly
inflation rates reached the highest levels since German
reunification.
While the economic output in Central Europe grew
positively in the second quarter, albeit with diminishing
momentum, GDP in the whole Central and Eastern Europe
region decreased as a result of the Russia-Ukraine
conflict. The sanctions imposed on Russia resulted in
considerable burdens from March 2022 onwards, causing the
Russian economic output to record a sharp downturn as early
as the second quarter. Inflation rates increased, in some
cases significantly.
Gross domestic product in the USA increased in the first
six months of 2022 compared to the prior-year period,
however growth tailed off over the final quarters. On
account of rising inflation and the strained situation on
the labor market, the US Federal Reserve has continued its
restrictive monetary policy and increased the key interest
rate three times over the first half of 2022. The
unemployment rate declined further in the reporting period
compared to the high level seen in the prior year.
At the start of the Covid-19 pandemic, China was exposed
to the negative effects earlier than other economies and
benefited over the further course of the pandemic from a
relatively low level of new infections due to its
zero-Covid strategy. In connection with the spread of the
Omicron variant, this strategy led to temporary local
lockdowns. Chinese GDP rose in the reporting period,
however momentum slowed somewhat in the second quarter of
2022.
MARKET DEVELOPMENT FOR THE AUTOMOTIVE AND FINANCIAL SERVICES SEGMENTSBetween January and June 2022, the volume of the
passenger car market worldwide significantly declined
overall year on year (down 10%), impacted primarily by
bottlenecks and disruption in the global supply chains as a
consequence of the semiconductor shortage, the coronavirus
pandemic and the repercussions of the Russia-Ukraine
conflict. Western Europe and North America recorded a
considerably weaker sales volume. Sales volume fell very
sharply in Central and Eastern Europe.
In Western Europe, the number of newly registered
passenger cars in the reporting period fell well short of
the prior-year level. Shortages with the supply of parts,
in particular semiconductors, and the resulting limited
availability of vehicles led to a decline in the number of
new registrations in the first half of 2022.
In Germany, new passenger car registrations from January
to June 2022 were significantly down on the comparable
prior-year period. In this regard, the prior-year figure
was already comparably low at the beginning of 2021 due to
the temporary reduction of the VAT rate, which expired at
the end of 2020. The continued deterioration of the supply
situation due to the shortage of intermediates in
particular continued to have a dampening effect.
In Central and Eastern Europe, the passenger car market
volume recorded a clear decline in the reporting period
compared to the prior-year level. The development of sales
in the individual markets varied. By far the largest market
decline was recorded in Russia. The main reason for this
was the Russia-Ukraine conflict and the associated
sanctions, which severely restricted the production and
sale of vehicles in Russia.
Passenger car market volume in the USA decreased both in
absolute terms and also significantly compared to the
prior-year level.
In Asia, the percentage decline of new passenger car
registrations was lower in the reporting period than most
other regions. On the Chinese market, sales volumes were
noticeably down on the figure from the comparable
prior-year period. The development of passenger car sales
was negatively impacted by the limited availability of
vehicles due to bottlenecks in the supply of parts, in
particular semiconductors, and local lockdowns in
connection with the spread of, among others, the Omicron
variant of the SARS-CoV-2 coronavirus.
ORDERS RECEIVED FOR THE AUTOMOTIVE SEGMENTGlobally, orders received in the first half of 2022
stood at 169,624 vehicles (June 30, 2021: 187,794
vehicles). In Germany and the Rest of the world, these are
up on the prior year, while in the regions North America,
China and Europe (without Germany) these are down on the
prior year. This is due to the record half year in the
prior year in North America and China, the coronavirus
lockdowns in China and our dramatically reduced activities
in Russia.
FINANCIAL SERVICES SEGMENTThe financial services segment includes the leasing
business, dealer and customer financing, service and
insurance brokerage business as well as mobility services
for vehicles of the Porsche brand. Additionally, within
selected markets the services entail other brands of the
Volkswagen Group. These include in particular the brands
Bentley and Lamborghini. The segment includes the products
and services of Porsche financial services companies in the
respective markets, which, depending on the market, are
provided by the company itself or in cooperation with local
partners.
There continued to be strong demand for the products and
services of the financial services segment in the first
half of 2022. As of June 30, 2022, the ratio of leased or
financed new vehicles to the total number of deliveries in
the markets of the financial services segment (penetration
rate) stood at 43.2% (June 30, 2021: 43.2%).
The number of contracts in the financing/leasing area
(both including cooperation business) increased across all
regions and at 320,000 contracts at the end of June 2022
exceeded the figure as of the comparable reporting date as
of June 30, 2021 (299,000 contracts).
RESULTS OF OPERATIONS, FINANCIAL POSITION AND NET ASSETSKEY FIGURESscrollen
RESULTS OF OPERATIONSThe Porsche AG group recorded sales revenue of
€17,922 million in the first half of 2022, an increase
of 8% on the prior year (€16,525 million). The
increase is mainly attributable to sales revenue from
vehicles (up €1,384 million).
The slight decline in consolidated unit sales was more
than compensated for by positive product mix effects,
improved pricing and positive exchange rate effects in
particular. Sales revenue by region breaks down as follows:
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1 excl. Mexico
In the first half of 2022, the Porsche AG group sold
148,568 vehicles. This corresponds to a 2% decrease in unit
sales compared to the prior-year period.
This slight decrease is due to the import situation in
China being negatively affected by the Covid-19 pandemic as
well as delays in the supply chains for semiconductors and
wire harnesses, the latter as a result of the
Russia-Ukraine conflict.
The Cayenne is the bestselling series with 44,600
vehicles sold and an increase of 4%, followed by the Macan
with 39,386 vehicles. The positive mix effect stems from
increases in the unit sales of 911 (567 vehicles; 3%) and
Panamera (1,123 vehicles; 8%). Due to delays in the supply
chains for wire harnesses and semiconductors, the Taycan
recorded sales of 17,474 vehicles, a 16% decrease compared
to the comparative period.
In regional terms, with a total of 46,664 vehicles sold
China is still the largest market, despite a 6% decrease in
unit sales. In relative terms, the largest growth of 3% to
28,943 vehicles sold was seen in the market Europe without
Germany. The markets North America and Rest of the world
remained stable at the prior-year level with 37,086 and
23,401 vehicles sold, respectively.
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The cost of sales rose by €833 million to
€12,869 million (prior year: €12,036 million).
The relative decrease in the cost of sales in proportion to
sales revenue is primarily attributable to changes in the
product and region mix and decreasing fixed costs, lower
amortization of capitalized development costs and a higher
capitalization ratio of development costs.
Gross profit increased accordingly by 13% to €5,053
million (prior year: €4,489 million), therefore
resulting in a gross margin of 28% (prior year: 27%).
Distribution expenses of €956 million were kept at
the prior-year level (prior year: €957 million).
Administrative expenses rose from €722 million to
€766 million on account of the digitalization
strategy, among other things. In proportion to sales
revenue, distribution expenses decreased slightly to 5%
(prior year: 6%), while administrative expenses remained
unchanged at 4% (prior year: 4%).
Other operating income/expense increased from an expense
of €18 million to income of €149 million. The
increase is mainly attributable to the high demand for used
vehicles and, correspondingly, higher write-ups of residual
values in the financial services business. The fair value
measurement of derivatives outside of hedge accounting also
had a positive effect on other operating income/expense.
The Porsche AG group's operating profit came to
€3,480 million in the first half of 2022; an increase
of €688 million on the prior year. The cost structure
and the consistently high earnings power of the Porsche AG
group are also reflected in the key return indicators.
Despite the impact of the Russia-Ukraine conflict, the
global spread of the Omicron variant and persistent
semiconductor supply shortages, the Porsche AG group
generated a return on sales of 19.4% in the first half of
2022 (prior year: 16.9%), mainly due to countermeasures
being introduced at an early stage, cost discipline as well
as improved price positioning.
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The financial result came to €208 million (prior
year: €172 million). The increase mainly stems from
positive measurement effects from the adjustment of
interest rates as well as the completion of the capital
transactions at Rimac Group d.o.o. and at IONITY Holding
GmbH & Co. KG in the first half of 2022. This led to a
positive effect on earnings, which is included in the share
of profit or loss of equity-accounted investments. This was
counterbalanced by an impairment loss on the
equity-accounted investment in Bertrandt AG.
Profit before tax amounts to €3,688 million (prior
year: €2,964 million). The pre-tax return on sales
amounts to 20.6% (prior year: 17.9%).
Income tax expense came to €1,183 million in the
first half of 2022 (prior year: €846 million). Profit
after tax rose by €387 million from €2,118
million in the corresponding prior-year period to
€2,505 million in the current reporting period.
Earnings per ordinary share came to €2.74 and per
preferred share to €2.75. Earnings per ordinary share
and per preferred share have been determined on the basis
of a total of 455,500,000 shares in each category.
AUTOMOTIVE RESULTS OF OPERATIONSAutomotive operating profit of €3,261 million in
the first half of 2022 exceeded the prior-year figure by
€600 million. In addition to favorable price
positioning and the development of the product mix,
positive foreign exchange rate effects and the fair value
measurement of derivatives outside of hedge accounting had
a positive effect. Automotive return on sales rose to 19.9%
(prior year: 17.6%). Automotive EBITDA increased by
€487 million to €4,341 million.
Research and development (without amortization) work
totaled €1,304 million in the reporting period;
representing a 4% increase on the prior-year figure.
RESULTS OF OPERATIONS IN THE FINANCIAL SERVICES SEGMENTFinancial services operating profit increased to
€216 million in the first half of 2022 (prior year:
€151 million). The increase is primarily driven by a
sharp rise in interest rates in the second quarter of 2022
in particular as well as the high demand for used vehicles
and, correspondingly, higher write-ups of residual values.
Financial Services return on sales came to 13.4% (prior
year: 9.8%).
FINANCIAL POSITIONCash flows from operating activities rose from
€3,653 million to €3,922 million in the first
half of the year. This positive development mainly results
from the considerable increase in profit, while the change
in working capital remained at roughly the same level.
Working capital was primarily influenced by the increase
in inventories of vehicles, which led to a €582
million increase in inventories in the first half of 2022
(prior year: €17 million). The coronavirus measures in
China as well as the availability of semiconductors were
the main factors in this context.
By contrast, the change in liabilities (excluding
financial liabilities) of €1,556 million had a
positive effect on cash flows from operating activities.
Trade payables remained at the prior-year level, while
other liabilities rose. The increase in other liabilities
stems from the import situation in China, which was
adversely impacted by the Covid-19 pandemic in the first
half of the year.
The cash outflows from investing activities came to
€898 million and decreased by €2,803 million
(prior year: cash outflows of €3,701 million). This
development was primarily driven by changes in investments
in securities, loans and time deposits (cash inflows of
€966 million; prior year: cash outflows of €2,252
million). A short-term loan with Volkswagen AG that was
accounted for in the prior-year period had an offsetting
effect in the first half of the year through its repayment.
By contrast, the investing activities of current operations
rose by €-416 million to €-1,864 million in the
first six months of 2022.
Cash flows from financing activities consisting of a
cash outflow of €2,049 million (prior year: cash
outflows of €1,197 million) is primarily attributable
to the profit transfer and dividends of €-1,864
million (prior year: €-1,864 million). Financial
activities were reduced by €442 million in the first
half of 2022, among other things as a result of the
repayment of financial liabilities in the financial
services segment.
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FINANCIAL POSITION IN THE AUTOMOTIVE SEGMENTAutomotive cash flows from operating activities
increased by €102 million to €4,167 million in
the first half of 2022.
Compared to the prior-year period, the investing
activities of current operations in the automotive segment
increased from cash outflows of €1,463 million to cash
outflows of €1,778 million. The increase is primarily
due to higher capitalized development costs as well as a
higher investment volume for the acquisition of
equity-accounted investments. The latter was significantly
influenced by investments in equity-accounted investments
such as Rimac Group d.o.o. and Porsche eBike Performance
GmbH (formerly: FAZUA GmbH).
Investments in intangible assets (excluding capitalized
development costs) and property, plant and equipment in the
automotive segment decreased year on year by €118
million to €427 million in the first half of 2022.
The ratio of capex to sales revenue decreased from 3.6%
to 2.6%. Investments were particularly high in vehicle
projects, the electrification and digitalization of
products and in production sites.
As a result, the automotive segment generated a net cash
flow of €2,389 million in the first half of 2022. The
net cash flow decreased by €212 million, mainly on
account of the €315 million increase in investing
activities of current operations.
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Cash flows from financing activities in the automotive
segment changed from cash outflows of €1,854 million
in the prior-year period to cash outflows of €2,253
million in the first half of 2022.
The increase in changes in other financial liabilities
of €401 million made a significant contribution in
this context, relating to the repayment of other financial
liabilities to the financial services segment. In addition
to the profit transfer to Porsche Holding Stuttgart GmbH
affecting the automotive segment and the capital
contribution, other financial liabilities of €-646
million also has an effect here (prior year: €-244
million), which relate to the repayment of other financial
liabilities to the financial services segment in connection
with ABS financing.
As of June 30, 2022, cash and cash equivalents in the
automotive segment at the end of the period rose by
€1,132 million to €5,734 million compared to
year-end 2021. By contrast, securities, loans and time
deposits of the automotive segment decreased by
€-1,030 million to €2,760 million in the first
half of 2022.
Automotive third-party borrowings decreased by €525
million to €-2,897 million in the first half of the
year on account of repayments of financial liabilities.
There is a master loan agreement with the Volkswagen Group
for a line of €4,000 million (amount drawn: €0
million; prior year: €0 million).
Automotive net liquidity increased accordingly by
€627 million to €5,597 million in the first half
of 2022 compared to December 31, 2021.
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At the end of the reporting period, the Porsche AG group
reported total assets of €55,055 million, that is a 7%
increase compared to December 31, 2021.
In the second quarter, the shareholders of Porsche AG
approved the spin-off of assets, primarily non-current loan
receivables and other financial assets due from Porsche
Holding Stuttgart GmbH as well as receivables due from
Volkswagen AG from the in-house bank account, which are
classified as cash and cash equivalents, to another company
of the Volkswagen AG Group. As of June 30, 2022 and thus
before the spin-offs take effect through entry in the
commercial register at the beginning of July 2022, these
financial assets are therefore classified as assets held
for distribution.
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Intangible assets increased from €6,190 million to
€6,813 million. The increase is largely attributable
to capitalized development costs, with the largest
additions relating to the Cayenne, 911 and Macan series.
Property, plant and equipment decreased on the prior
year by €104 million to €8,659 million. The
decrease is primarily due to the lower net carrying amounts
of furniture and fixtures as well as plant and machinery,
while the carrying amounts of land and buildings as well as
advance payments made and assets under construction
increased. Leased assets increased by €94 million
compared to the prior year to €4,048 million. This
item includes vehicles leased to customers under operating
leases. The carrying amounts of equity-accounted
investments increased due to the completion of the capital
transactions at Rimac Group d.o.o. and IONITY Holding GmbH
& Co. KG. This was counterbalanced by an impairment
loss on the shares in Bertrandt AG of €37 million.
The increase in other financial assets primarily relates
to the acquisition of shares in FAZUA GmbH (€101
million), the acquisition of an investment in Group14
Technologies (€92 million) and the acquisition of
Porsche Financial Services Korea Ltd. (€54 million).
The decrease in non-current other financial assets
largely relates to the reclassification of the loan
receivable of €8,135 million from Porsche Holding
Stuttgart GmbH to assets held for distribution.
In total, non-current assets decreased by €6,086
million to €26,744 million. Non-current assets
expressed as a percentage of total assets amount to 49%
(prior year: 64%).
Inventories increased from €4,517 million in the
prior year to €5,245 million at the end of the
reporting period. The increase primarily relates to the
increased inventories of new vehicles on the Chinese market
due to the restrictions implemented in the first half of
the year under the zero-Covid strategy.
Current other financial assets and other receivables
decreased by €3,246 million to €3,885 million.
The decrease relates, for one thing, to the
reclassification of the clearing account with Porsche
Holding Stuttgart GmbH of €2,028 million and the
current loan receivables due from Porsche Holding Stuttgart
GmbH of €214 million to current assets held for
distribution and the repayment of the current loan of
€2,000 million granted to Volkswagen AG. On the other
hand, marking derivative financial instruments to market
increased, as did other receivables, in particular VAT
receivables.
Securities and time deposits as well as cash and cash
equivalents increased by €204 million compared to the
prior year to €5,872 million. As a result of the
increased number of time deposits with an original
contractual term of more than three months, these time
deposits are presented together with securities as of June
30, 2022.
Assets held for distribution of €11,881 million had
a particular effect on current assets due to the
reclassification of loan receivables due from Porsche
Holding Stuttgart GmbH of €8,135 million. In total,
current assets increased by €9,759 million to
€28,311 million. Current assets expressed as a
percentage of total assets amount to 51% (prior year: 36%).
As of June 30, 2022, the equity of the Porsche AG group
decreased by €7,892 million to €15,043 million
compared to the figure from December 31, 2021. This is
primarily due to a reduction of the capital reserves and
retained earnings as a result of the recognition of a
liability from the distributions in kind of €11,881
million.
The positive development in profit after tax, other
comprehensive income, net of tax, as well as the capital
contribution by Porsche Holding Stuttgart GmbH caused
equity to increase by €3,996 million. Within other
comprehensive income, net of tax, the increase was mainly
due to the remeasurement of pension plans, net of tax, and
positive effects from currency translation. This was
counterbalanced by the negative effects from the
measurement of derivative financial instruments through
other comprehensive income.
In the first half of 2022, provisions for pensions and
similar obligations decreased by €1,876 million
compared to the com-arative period in 2021, largely as a
result of the actuarial remeasurement stemming from the
change in the discount rate from 1.4% to 3.3%. On the other
hand, non-current other liabilities increased by
€1,411 million to €4,655 million compared to
December 31, 2021. The increase largely results from an
increase in derivative financial instruments marked to
market (+€677 million) and deferred tax liabilities
(+€634 million).
In total, non-current liabilities decreased by €640
million to €14,728 million. Non-current liabilities
expressed as a percentage of total capital amount to 27%
(prior year: 30%).
Due to the spin-off resolutions, liabilities from
distributions in kind of €11,881 million were
recognized as of June 30, 2022, leading to a decrease in
the capital reserve and retained earnings. Trade payables
increased by 30%, or €734 million, compared to
year-end 2021. Current other liabilities decreased by
€620 million compared to December 31, 2021. The
decrease was primarily attributable to the payment of the
profit transfer of €1,858 million for fiscal year 2021
to Porsche Holding Stuttgart GmbH. This was counterbalanced
by marking the financial instruments to market (+€426
million) and the current liabilities from other taxes
(+€609 million). In total, current liabilities
increased by €12,205 million to €25,284 million.
Current liabilities expressed as a percentage of total
capital amount to 46% (prior year: 25%).
As of June 30, 2022, there are off-balance-sheet
contingent liabilities of €117 million. This is a
€75 million increase compared to the prior-year
period, primarily as a result of recognizing additional
legal and product-related matters.
Other financial obligations increased by €995
million to €3,850 million and essentially comprise
obligations from development, supply and service agreements
OVERALL STATEMENT ON BUSINESS DEVELOPMENT AND THE ECONOMIC SITUATIONThe Executive Board of the Porsche AG assesses the
business development and the economic situation as positive
overall in light of the current challenges. The Porsche AG
group's business was impacted by the effects of the
Russia-Ukraine conflict, the global spread of the Omicron
variant and especially by limited vehicle availability as a
result of semiconductor shortages in the reporting period.
In addition, our industry is shaped by fierce competition,
technological transformation and increasing ecological
awareness. In this environment, we delivered 145,860
vehicles to customers in the first half of the year.
The Porsche AG group significantly increased its sales
revenue and operating profit in the first six months of
2022. Sales revenue increased from €16,525 million in
the first half of 2021 to €17,922 million in the first
half of 2022. Operating profit rose from €2,792
million to €3,480 million. The return on sales of the
Porsche AG group grew to 19.4% in the first half of 2022
compared to 16.9% in the prior-year period. The increase in
the return on sales is above all thanks to a strong product
mix, positive foreign exchange rate effects and the
developments in the other business fields.
Despite extensive investments in future projects, the
automotive net cash flow amounted to €2,389 million in
the first half of 2022 (prior year: €2,601 million).
Report on expected developments, opportunities and risksREPORT ON EXPECTED DEVELOPMENTSAs a consequence of global political events, the global
economy is expected to grow overall in 2022, albeit at a
slightly slower rate. Global demand for passenger cars is
expected to develop differently from one region to another
and to be at the level of the prior year. With our
innovative solutions, our attractive product range and our
digital, electrified vision for the future, we believe we
are bridging the gap between performance and luxury on the
one hand and sustainability on the other.
The expected development of the Porsche AG group and the
underlying conditions of its business activities are
described below. Risks and opportunities, which could give
rise to a deviation from the forecast development are set
out in the risk and opportunities report.
Our assumptions are based, inter alia, on current
estimates by external institutions; these include economic
research institutes, banks, multinational organizations and
consultancy firms.
THE GLOBAL ECONOMY AND GROWTH TRAJECTORYOur planning is based on the assumption that global
economic output will continue to grow at a lower level
overall in 2022 after the recovery in the past year. We
assume in our planning that the impact of the Covid-19
pandemic will be contained on a sustained basis. We see
risks in protectionist tendencies, turbulence in financial
markets, structural deficits in individual countries, the
real economic impact of high inflation rates around the
world, rising interest rates and in respect of market
shortages for intermediates and commodities. In addition,
growth prospects will be negatively impacted by ongoing
geopolitical tensions and conflicts, with risks arising
especially from the Russia-Ukraine conflict, including in
relation to the security of supply of energy resources in
Europe. We assume that average economic growth will tail
off yet continue to be positive for both advanced economies
and emerging markets.
In Western Europe, in the reporting period the economy
recorded positive growth compared to the prior-year period
with slowing momentum. According to our assessments, in
Western Europe economic growth will follow a declining yet
nevertheless positive trend in 2022. This also affects
Germany. We assume that overall gross domestic product
(GDP) in Germany and Western Europe will be slightly above
the prior-year level; it is likely that the level seen
before the Covid-19 pandemic will yet again not be reached.
We also expect further growth in the USA for 2022,
although the US Federal Reserve has continued its
restrictive monetary policy over the course of the year and
there are likely to be increases in interest rates. An
important factor for any potential increases in the key
interest rate and further economic growth, which is
dependent on this, will be the further development of
inflation. According to our expectations, Chinese GDP will
also continue to grow, albeit at a lower rate than in
previous years.
Demand for our vehicles and services depends
significantly on economic and political conditions
globally, in particular in the People's Republic of China
(including mainland China and, for the purposes of this
definition, Hong Kong, "China"), Europe (including Germany)
and North America. Economic conditions can be impacted by a
number of factors, for instance macroeconomic policy, trade
policy and conflicts, business and consumer sentiment,
monetary policy, inflation, commodity prices, public and
private debt levels, government policies targeting public
spending (such as fiscal austerity policies) as well as
geopolitical developments, including political tensions in
East Asia, among other factors. Demand for vehicles for
personal use generally depends on consumers' net purchasing
power, their confidence in future economic developments and
changes in economic trends, with the net purchasing power
of customers of luxury brands being significantly higher
than in other segments.
Therefore, for the purpose of the 2022 forecast, we
assume stable economic conditions on the whole.
DEVELOPMENT IN THE PASSENGER CAR MARKETSTaking into account the insights from the first half of
2022, our forecasts suggest that passenger car markets will
develop differrently in different regions of the world in
2022. On the whole, we expect that global sales volumes for
new vehicles will be at the prior-year level and will thus
not reach the level seen prior to the Covid-19 pandemic.
However, the preconditions for this are the successful
containment of the Covid-19 pandemic, overcoming market
shortages of intermediates, in particular semiconductors,
and raw materials as well as ensuring the supply of energy.
For Western Europe, we forecast that new passenger car
registrations will be at the level seen in the prior year.
This is due in particular to the economic impact of the
Covid-19 pandemic and the consequences of the
Russia-Ukraine conflict. The limited availability of
vehicles as a result of supply constraints for
semiconductors could also continue to burden the passenger
car market.
For the German passenger car market, we expect that the
number of new registrations of passenger cars will also be
at the prior-year level.
In Central and Eastern Europe, mainly due to the slump
in the Russian market due to the sanctions imposed in
relation to the Russia-Ukraine conflict, the number of new
registrations is expected to fall well short of the
prior-year figure.
In the US market and in North America as a whole (for
the purposes of this definition excluding Mexico), we
expect new registrations to be at the prior-year level in
2022. In this regard, we assume that mostly models from the
SUV segments will continue to be in demand here.
The passenger car market in China is expected to be
slightly above the prior-year level in 2022.
For the purpose of the 2022 forecast, we assume that out
market volume in China will also be slightly above the
comparative figure from 2021.
For the purpose of the 2022 forecast, we also assume
that new registrations in other markets will rise slightly
compared to the prior year.
COVID-19-PANDEMICThe Covid-19 pandemic has led many countries worldwide
to adopt measures to contain and combat the spread of
SARS-CoV-2 coronavirus, including travel bans, quarantines,
"stay-at-home" orders, restrictions on business activities
and similar requirements for individuals to restrict daily
activities. These measures have negatively impacted global
supply chains, including those of relevance to us. The
scale and duration of the Covid-19 pandemic and the
measures undertaken to contain it have severely impacted
regional and global economies. Especially due to the severe
restrictions in China, strong uncertainty remains regarding
the possible impact on the performance of the Porsche AG
group. If the further development of the Covid-19 pandemic
in other countries results in renewed severe restrictions,
this could place a substantial burden on households,
companies and governments in those countries and lead to
declines in economic growth. The deterioration of the
economic situation, consumer sentiment and the general
business climate could lead to a reduction in consumer
demand for our vehicles even in the less susceptible luxury
segment.
During the first half of 2022, the partial recovery of
the global economy was once again adversely affected by the
protective measures taken against the SARS-CoV-2
coronavirus, primarily due to new quarantine measures to
contain the Covid-19 pandemic in China (zero-Covid
strategy). The ongoing government reimposition of lockdowns
in parts of China throughout 2022 has resulted in numerous
Porsche dealerships having to close, certain suppliers in
China suspending operations and being unable to export out
of China and traffic restrictions at the Shanghai harbor, a
major shipping hub into and out of central China. These
economic developments, together with supply chain
constraints and the resulting logistics challenges,
negatively impacted automotive sales in China in the first
half of 2022.
For the purpose of the 2022 forecast, we assume that
there will be no more supply chain constraints and no
limitations of automotive sales (e.g., on account of
dealership closures) as a result of the Covid-19 pandemic
in the group's key markets compared to the first half of
2022.
RUSSIA-UKRAINE CONFLICTThe Russia-Ukraine conflict, the sanctions and
export-control measures instituted in response as well as
corresponding countermeasures have had and continue to have
an adverse impact on the global economy, the global capital
markets, international trade, supply chains, the
availability and prices of raw materials including energy
supplies as well as parts and components.
As a result of the conflict, the sale of Porsche
vehicles and, to the extent required by EU sanctions, spare
parts to Russia and Belarus was discontinued.
Therefore, unit sales in these markets are expected to
fall well short of the prior-year figure in 2022. For the
purpose of the 2022 forecast, we assume that the situation
in the Russia-Ukraine conflict will not deteriorate further
compared to the first half of 2022 and that the global
sales figures of the Porsche AG group will not be adversely
affected by the Russia-Ukraine conflict.
DISRUPTION TO GAS AND ENERGY SUPPLYIn the event of disruptions to gas supply or government
measures to ration gas supplies as a result of the
Russia-Ukraine conflict, we and many of our suppliers based
in Europe will likely not be able to cover our energy
requirements. This could lead to production stoppages,
factory shutdowns and therefore a decline in production,
delayed product development and ultimately a decrease in
the Porsche AG group's unit sales and sales revenue. 'A
further increase in energy prices could also adversely
affect profitability.
In general, there is the risk that growth prospects will
be negatively impacted by ongoing geopolitical tensions and
conflicts, with risks arising especially from the
Russia-Ukraine conflict, including in relation to the
security of availability of energy supplies. Particularly,
the supply of energy, other raw materials and parts for the
production process could result in greater constraints in
Europe, where a gas shortage is possible. For the purpose
of the 2022 forecast, we assume no production stoppages of
factory shutdowns impacting us or our suppliers due to gas
shortages, stoppages, or government restrictions relating
to natural gas supplies compared to the first half of 2022.
Moreover, we assume that there will be no further energy
price increases compared to the first half of 2022.
AVAILABILITY OF ESSENTIAL PARTSThe production of vehicles is highly dependent on the
availability of raw materials, parts and components,
especially semiconductors. Semiconductors are of vital
importance in the production of electrified vehicles and
the increasingly prevalent connectivity as well as safe and
autonomous driving features. Automotive companies around
the world, and therefore also the Porsche AG group, are
currently suffering from shortages of semiconductors.
Further, as a consequence of the Russia-Ukraine conflict,
there was a temporary halt in the supply of wire harnesses
in the first half of 2022.
On the whole, for 2022, subject to the proviso that the
underlying conditions do not get worse (the Covid-19
pandemic among others), we anticipate that the intensity of
market shortages of intermediates, in particular
semiconductors and wire harnesses, will abate somewhat. For
the purpose of the 2022 forecast, we assume that the supply
chain situation will improve compared to the first half of
2022 and that essential parts, especially semiconductors,
will be available as required for production purposes in
the second half of 2022.
PRICES OF RAW MATERIALS AND OTHER COMMODITIESAs a vehicle manufacturer, we are dependent upon the
global supply of raw materials, which is influenced to a
significant extent by the development of the global
economy. The global Covid-19 pandemic and the
Russia-Ukraine conflict brought the issue of the supply of
raw materials back into the spotlight. As a result of the
Covid-19 pandemic and the Russia-Ukraine conflict, there
were supply constraints for intermediates, in particular
semiconductors and wire harnesses. The principal raw
materials that the Porsche AG group uses include aluminum,
steel, palladium, rhodium, nickel, copper, lithium, cobalt,
magnesium, rare earth metals and noble gases (particularly
neon), for which average prices rose on account of the
supply constraints compared to 2021. Through the Volkswagen
Group, only a portion of our exposure to fluctuations in
prices is hedged.
For the purpose of the 2022 forecast, we assume that the
overall development of the prices of the most relevant raw
materials and goods will remain stable compared to the
first half of 2022.
FOREIGN CURRENCY RATESDue to the global orientation of our business
activities, our results of operations are exposed to risks
and opportunities related to fluctuations in currency
exchange rates. This applies particularly to fluctuations
of the euro against the Chinese renminbi (CNY), the US
dollar (USD) and the British pound sterling (GBP). Changes
in the exchange rates between these currencies can affect
our operations as a result of both transactional and
translational exchange rate effects.
Given the nature of our business, we maintain a
conservative but flexible hedging policy to manage our net
currency exposures using corresponding instruments.
We believe we have largely hedged our net exposure
across our key currency exposures for fiscal year 2022.
Nevertheless, the first half of 2022 was positively
influenced by fluctuations in currency exchange rates
contrary to our original assumptions. For the purpose of
the 2022 forecast, we assume a moderately positive impact
from foreign currency fluctuations on return on sales in
2022.
OVERALL STATEMENT ON ANTICIPATED DEVELOPMENTOur planning is based on the assumption that global
economic output will continue to grow at a somewhat lower
level overall in 2022, on the heels of the recovery
observed in the past year - provided that the Covid-19
pandemic does not flare up again. We also see risks in
protectionist tendencies, turbulence in financial markets,
structural deficits in individual countries, the real
economic impact of high inflation rates around the world,
rising interest rates and in respect of market shortages
for intermediates and raw materials.
Based on our knowledge and insights from the first half
of 2022, we expect passenger car markets to develop
differently in different regions of the world in 2022. It
can be assumed that the intensity of competition on
international automotive markets will increase further.
We believe that automobile-based financial services will
continue to be of great importance for the global sale of
vehicles in 2022.
For the purpose of the 2022 forecast, we expect return
on sales to be in the range of 17% to 18% for the entire
year 2022 based on the assumptions set out above and the
development in the first half of fiscal year 2022. This
forecast is based on assumed sales revenue for the Porsche
AG group in a range of approximately €38 billion to
€39 billion.
In terms of net cash flow in the automotive segment, at
year-end we expect a significant increase compared to 2021
(prior year: €3.7 billion).
RISK REPORTThe Porsche AG group's risk management system aims to
identify and appropriately address risks in respect of both
achieving strategic and operational targets as well as
complying with legal and internal requirements.
Regular reporting on risk management supports Porsche
AG's Executive Board in identifying developments
jeopardizing the company's ability to continue as a going
concern in a timely manner.
STRUCTURES AND PROCEDURES OF RISK MANAGEMENTThe Porsche AG group's risk management function is
organized in a decentralized manner. Alongside the central
risk management function as a method and reporting center,
each specialist division of Porsche AG and each subsidiary
is represented by appointed risk managers, who are
responsible for the implementation of and adherence to
baseline standards. The decentralized organizational
structure is designed to emphasize the importance of risk
management in the local operating units and ensure risks
are managed effectively.
The consolidated group of the risk management system
corresponds to the consolidated group of the consolidated
financial statements. Where it is reasonable to do so due
to in terms of risk, the risk consolidated group can be
expanded to include further entities.
In line with this decentralized structure, risks are
identified, assessed and managed first at the specialist
division and subsidiary level as the risk owner. The
reported net risks (risks after risk mitigation measures)
are generally tested for their plausibility by central risk
management and key functions, reviewed in respect of their
completeness in the Risk Council and reported to the full
Executive Board. A core element of risk management is that
employees and managers are given the opportunity to report
or update risks promptly via the group-wide reporting
channels that have been set up. An ad hoc reporting process
outside of the standard processes is in place for
large-scale risks. In this regard, the risk managers are
supported by central risk management. Alongside defining
group-wide standards on risk management in the form of
policies, central risk management is responsible for
preparing consolidated and aggregated risk reporting to the
Executive Board and Supervisory Board.
Acute risks are reported to the Executive Board, which
should they occur could cause cumulative financial damage
in excess of €5 million (level 1), already have a
negative impact on the Porsche AG group's reputation in the
short-term (level 1) or have legal consequences for at
least one employee of the Porsche AG group (level 1). The
risk evaluation is based on the current fiscal year and the
three subsequent years.
Risks are allocated to risk classes based on the risk
evaluation and without taking into account their likelihood
of occurrence. Material risks, i.e., risks with cumulative
financial damage greater than €100 million over the
reporting period are quantified in the next step. Risk
quantification takes place using appropriate probability
distributions and IT-supported simulations (Monte Carlo
simulation). Depending on their relevance, the risks are
reported to Porsche AG's Executive Board and Supervisory
Board in an aggregated form or at the level of the
individual risk. In respect of financial loss, a
distinction is drawn between the following risk classes:
Level 1 Risk class D ≥ €5 million - €10
million
Level 2 Risk class C > €10 million - €100
million
Level 3 Risk class B > €100 million - €1
billion
Level 4 Risk class A > €1 billion
The Porsche AG group has ensured the level of
qualification and trained employees involved in the risk
management process. In addition, voluntary refresher
training is also offered alongside compulsory training.
Central risk management reviews the progress of training
and the level of coverage on an ongoing basis and reports
this on an annual basis to the Risk Council and the
Executive Board.
The relevant portion of the risk management system (RMS)
in respect of accounting includes measures and controls
designed to ensure that information required for the
preparation of the financial statements is transmitted in a
complete, correct and timely manner. These measures and
controls should minimize the risk of the occurrence of
errors with a material impact on the presentation of the
net assets, financial position and results of operations in
the accounting and external reporting.
RISK STRATEGYThe term risk is defined as the possibility of a
negative deviation from a budgeted figure or target. Risks
are generally evaluated on a net basis. In order to account
for a diverse range of risks, the following risk categories
have been determined.
Strategic risks primarily result from the threat to our
core potential for success. This includes trends, new
competitors or long-term technological changes. These are
usually analyzed over the long-term.
Sales risks reflect the fact that planned sales volumes
are uncertain in the future and - depending on the planning
horizon - could fluctuate somewhat.
Supply risks stem from the possibility that there will
be no supply or a supply shortage of parts required from
suppliers or quality and/or price risks associated with
these.
Financial risks primarily result from uncertainty
regarding exchange rates, interest rate developments and
other movements on financial markets.
Personnel risks stem in particular from the availability
and motivation of staff.
Operational risks result from the unsuitability or
failure of internal processes or systems.
The risk categories are set down in the Porsche risk
strategy. The risk strategy describes how risks arising
from the business strategy are dealt with. This also
includes dividing the business model up into reasonable
categories.
In addition, the risk strategy also includes four
overarching pillars of managing risks. Risk acceptance,
i.e., knowingly entering into and accepting risks, risk
avoidance, i.e., knowingly not entering into a business in
order to avoid the risks it entails, risk reduction, i.e.,
reducing the probability or extent of the damage in order
to manage a risk at an acceptable level, and risk transfer,
i.e., transferring a risk to the balance sheet of another
economic operators, for example an insurance company.
Risks in the aforementioned categories can lead, both
individually, but primarily when acting together in an
unfavorable manner, to a situation that could jeopardize
the company's ability to continue as a going concern. In
order for the interplay of individual risks to be
adequately taken into account, central risk management
aggregates the material individual risks into an
overarching overall risk. Risk aggregation is carried out
using IT-supported simulations (Monte Carlo simulation).
The maximum tolerated amount of the overarching overall
risk, known as the risk appetite, defines what maximum
threshold the overall risk cannot exceed in respect of the
financial loss and the likelihood of this being exceeded.
Porsche risk management system's risk-bearing capacity
concept is currently based on the over-indebtedness
components. The overall risk is evaluated in relation to
its impact on EBIT. Subsequently, book equity as available
risk capital is compared against the overall risk. The
illiquidity component is currently being integrated into
the risk-bearing capacity concept and successively also
taken into account in the risk strategy.
In order to avoid repetitions of risks that have
occurred, a root cause analysis (RCA) is carried out.
Valuable insights on avoiding errors in the future and
lessons learned across specialist departments and entities
are derived based on these findings.
For the documentation of the group-wide risk management
system and exercising the monitoring function, there is an
IT solution, which sets out all risk management approaches.
It helps specialist departments and subsidiaries to carry
out risk management processes and adhering to defined
baseline standards.
OVERALL RISK SITUATIONSince fiscal year 2021, the overall risk has been
aggregated and compared with equity in the calculation of
risk-bearing capacity. The aggregated overall risk is
reported on a quarterly basis using the value-at-risk for
the current fiscal year and the three subsequent years. The
overall risk contains all of the material acute risks with
a cumulative financial loss greater than €100 million
over the period under review. In addition, it also contains
further uncertainty components for the overarching sales
risk and operational risks.
The risk-bearing capacity calculation beyond the first
half of 2022 shows that it is sufficiently improbable that
a development jeopardizing the company's ability to
continue as a going concern will materialize per fiscal
year examined.
RISK SITUATION AS OF JUNE 30, 2022The radar diagram below provides an overview of the
significant risk areas as of June 30, 2022. The size of the
circles reflects the number of risk reports submitted for
each risk area. The position of the circle reflects the
risk class of the risks contained therein.
Cluster representation as of June 30, 2022
SUPPLY RISKSince 2021 there have been significant supply risks
caused by the shortage of semiconductors, increased prices
and a shortage of commodities, quality problems with
bought-in parts and large loss events at suppliers, which
have continued in fiscal year 2022. Larger damage was
avoided by adjusting the production schedule and installing
alternative components.
RISKS FROM THE RUSSIA-UKRAINE CONFLICT AND ITSCONSEQUENCESOn account of the military escalation of the
Russia-Ukraine conflict, there were supply problems in the
first half of fiscal year 2022, in particular for wire
harnesses for almost all series. In order to maintain
supply and therefore continue to manufacture vehicles,
duplex manufacturing facilities were set up at short notice
for these components at alternative locations by the
suppliers.
On account of the economic impact resulting from the
conflict, e.g., rising inflation and interest rates, there
is also the risk of a global decline in unit sales.
Moreover, the need could arise to recognize further
impairment losses on assets and additional risk provisions.
In addition, there is also the possibility that Porsche
dealerships and/or customers in Russia, based on various
decisions, could assert claims for damages due to
contractual, quality and warranty issues. The situation and
development of the markets are being monitored on an
ongoing basis by a dedicated task force.
RISKS FROM THE GAS SHORTAGEThe production and development sites of the Porsche AG
group and its suppliers are directly impacted by the
effects of the Russia-Ukraine conflict on the gas supply.
Price increases and in particular the threatened stoppage
of the gas supply to factories in the event that a higher
state of alert is declared in Germany are an acute risk. In
addition, the supplier network and therefore the supply of
parts is also endangered. A task force was set up to
introduce countermeasures at an early stage.
BCM RISKSThere are risks of downtime on account of force majeure
or other unforeseen events (e.g., pandemic, fire, floods,
cyber attack). The preventive safeguarding of critical
resources, e.g., IT applications, employees or buildings,
takes place via the business continuity management system
(BCMS). The backing up of the IT infrastructure that is
already in place against the risk of system downtimes and
disruptions to processes is currently being expanded to
include additional threat scenarios. In addition, as part
of the BCMS, IT applications identified as critical, which
support material and time critical business processes, are
integrated into the IT back up.
RISKS FROM REGULATORY REQUIREMENTSThe Porsche AG group has identified potential regulatory
issues relating to gasoline powered vehicles for various
markets worldwide. Potential issues regarding sport
functionalities were determined. The questions also relate
to the possible use of hardware or software for type
measurements that deviate from series vehicles in certain
cases. According to the information currently available, on
the whole these issues do not relate to any vehicles that
were developed after 2017. The internal investigations into
this matter at the Porsche AG group have largely been
completed. The Porsche AG group is cooperating fully with
the responsible authorities, including the public
prosecutor's office in Stuttgart, which has instigated a
criminal investigation against twelve (former) employees at
Porsche AG. Proceedings against all those accused have
since been closed pursuant to section 153 of the German
Code of Criminal Procedure (Strafprozessordnung - StPO).
The public prosecutor's office has not instigated
administrative fine proceedings against the company. To
date, six different class actions relating to these issues
have been filed in the US (and in Canada as well).
According to the statement of claims, software and/or
hardware allegedly used in the affected vehicles resulted
in actual exhaust emissions and/or fuel consumption being
higher than legally permitted. In January 2021, a
consolidated complaint was filed combining the six filed
class actions into one lawsuit. The six lawsuits were
originally directed against Porsche AG and its US importer
subsidiary, Volkswagen AG as well as AUDI AG, although not
every company is being sued in all of the cases at hand. On
June 15, 2022, a settlement that had been reached with the
plaintiffs' representatives, which covers the relevant
vehicles, was submitted for approval to the competent US
District Court of the Northern District of California. A
corresponding provision has been recognized for the amount
on which this settlement is based. The draft settlement was
provisionally approved by the court of competent
jurisdiction on June 29, 2022. The final hearing is
expected to take place on October 21, 2022. The US
Department of Justice ended proceedings on June 2, 2022
without consequence for the Porsche AG group. A
comprehensive settlement agreement is aimed to be reached
with the CARB before the end of September 2022. Talks with
other authorities are still ongoing.
COST RISKS FROM VEHICLE PROJECTSAs in the past, cost demands from suppliers for various
reasons lead to cost risks in vehicle projects in respect
of investments and direct material costs. The reasons for
this include for example increased commodity prices and
other cost increases in connection with manufacturing.
Closely monitoring these within the projects and taking
countermeasures at an early stage, e.g., by negotiating on
the part of procurement, reduces the cost risks.
TAX RISKFindings from the tax field audit could lead to tax
back-payments and tax interest. Risks could arise from the
tax valuation of crossborder, intragroup trade. Tax risks
and their impact on the consolidated financial statements
are closely monitored on an ongoing basis. Tax provisions
were recognized for potential future payments of tax
arrears while other provisions were recognized for
ancillary tax payments arising in this connection.
CUSTOMS RISKBased on the free trade agreements that the EU has
concluded with various countries, Porsche vehicles can be
imported to these countries with reduced customs duties or
duty-free in compliance with the local content
requirements. If the local content requirements are not met
or complete evidence is not produced, the import can no
longer take place with reduced customs duties into the
affected countries party to the free trade agreement.
Therefore, the preference certificates for series materials
are requested from the affected suppliers by the customs
department, in the event of an escalation with the
involvement of procurement. In the event that preference
certificates are not issued by suppliers to a sufficient
extent, a consultation takes place with sales controlling
and the tax department as to whether an increase in the
ExNet/ex work prices is possible in order to achieve the
required local content quota.
DATA PRIVACY RISKData privacy laws are currently being amended or
introduced in many markets. However, the requirements are
not always unambiguous in respect of their interpretation.
In China in particular, data privacy laws are adopted by
the Chinese authorities at short notice. The required
technical and organizational measures are being implemented
by working closely with the Porsche AG group's local and
German data privacy departments.
FINANCIAL RISK MANAGEMENT AND METHODSDue to the international activities in the automotive
and financial services divisions, changes in exchange rates
and interest rates affect the net assets, financial
position and results of operations of the Porsche AG group.
These risks result in particular from foreign currency
transactions in the course of ordinary operations, from
financing and from financial investing activities. The
risks are regularly monitored, reported and centrally
managed using financial instruments. The primary aim of
using financial instruments is to limit the financial risk
exposures in order to ensure the Porsche AG group's ability
to continue as a going concern and its earnings power.
The principles and responsibilities for managing and
controlling the risks that could arise from these financial
instruments are defined by the Executive Board and
monitored by the Supervisory Board. Internal guidelines
exist within the Porsche AG group that clearly define the
risk management and control processes. These guidelines
regulate, among other things, the use of financial
instruments or derivatives and the requisite control
procedures, such as a clear segregation of functions
between trading and settlement. The treasury department
identifies, analyzes and monitors risks group-wide. The
underlying guidelines and the supporting systems are
checked regularly and brought into line with current market
and product developments.
Derivative financial instruments are mainly used to
control currency and interest rate risks. Currency risks
from future sales revenue denominated in foreign currencies
are hedged through the use of exchange rate hedging
instruments for a period of up to five years. The main
hedging instruments used are forward exchange transactions
and currency options. The volume of exchange rate hedges is
determined on the basis of the planned sales figures in the
respective foreign currency, taking into account
procurement volumes. The counterparties for the
exchange/interest rate hedges are Volkswagen AG and major
national and international financial institutions.
Cooperation is subject to uniform regulations and
continuous monitoring. The interest rate risk from
variable-rate financing and the interest rate risk from
refinancing the financial services business are largely
hedged through the use of suitable derivatives such as
interest rate swaps.
Financial instruments are primarily used to reduce
financial risks. However, the financial instruments used
give rise to potential risks, such as counterparty risks
and accounting risks. Channeling excess liquidity into
investments also exposes the group to counterparty risks.
Partial or complete default by a counterparty would have a
negative impact on the net assets, financial position and
results of operations. In order to manage these risks, the
Porsche AG group has set out guidelines to ensure that
transactions are concluded only in approved financial
instruments, only with approved counterparties and only on
the admissible scale. Accounting risks relating to the
financial instruments entered into for hedging purposes
also have to be analyzed. The risk of effects on the
presentation of results of operations in the income
statement is limited by means of hedge accounting.
Default risks in receivables are reduced by means of a
strict receivables management system.
MARKET RISKDuring the course of its general business activities,
the Porsche AG group is exposed to foreign currency,
interest rate and residual value risks, as well as risks
relating to shares, bonds and commodity prices. It is
company policy to exclude or limit these risks where
possible by entering into hedging transactions. All
necessary hedging transactions are executed or coordinated
centrally by the treasury department.
Currency risk in the financial services division mainly
results from assets denominated in a currency other than
the functional currency, and from refinancing as part of
operating activities. Currency risk in the automotive
division mainly results from operating activities, as well
as investments and financing operations. Currency forwards
and currency options are used to reduce currency risk. They
are used to hedge the exchange rates for all material
payments made in the course of general business operations
that are not denominated in the functional currency of the
respective company. In 2022, hedges were entered into in
the following currencies as part of currency risk
management: Australian dollar (AUD), Brazilian real (BRL),
British pound sterling (GBP), Canadian dollar (CAD),
Chinese renminbi (CNY), Hong Kong dollar (HKD), Japanese
yen (JPY), Mexican peso (MXN), Polish zloty (PLN), Russian
ruble (RUB), Singapore dollar (SGD), South Korean won
(KRW), Swedish krona (SEK), Swiss franc (CHF), Taiwan
dollar (TWD), and US dollar (USD).
Interest rate risk in the financial services division
mainly results from changes in market interest rates,
primarily for medium- and long-term floating-rate
liabilities and from non-maturity-matched refinancing. This
risk is reduced by entering into interest rate hedges and
cross-currency interest rate swaps. Interest rate risk in
the automotive segment results from changes in market
interest rates, primarily for medium- and long-term
interest-bearing receivables and liabilities. Floating-rate
items are included in cash flow hedges and - depending on
the market situation - some are hedged by means of interest
rate swaps.
The residual value risk inherent in the leasing business
in the financial services division results from a negative
deviation between the residual value calculated when the
agreement is concluded and the market value of the leased
vehicle when it is sold following expiry of the agreed
lease period. In some markets, such as North America and to
some extent in Germany, this residual value risk is borne
by Porsche financial services companies. The market price
of used vehicles constitutes the key risk variable in this
context. Operational risk management is provided via
ongoing monitoring of the development of used vehicle
prices by means of data available outside the company.
Residual value forecasts are used to check the
appropriateness of the loss allowance and the residual
value risk potential. The effects from a change in used
vehicle prices are quantified using a sensitivity analysis.
The special fund launched using surplus liquidity,
UI-356, is exposed in particular to equity and bond price
risk that may arise from fluctuations in quoted market
prices, stock exchange indices and market interest rates.
The risks to which the special fund is exposed are
generally countered by the Porsche AG group by ensuring a
broad diversification across a range of products, issuers
and regional markets when making investment decisions, as
stipulated in the investment policy. The risk management
system in place is based on a minimum value threshold and,
if the market situation is appropriate, exchange rate
hedges are entered into.
There are also risks relating to commodities in the
automotive segment in respect of the availability of raw
materials and the development of prices. Possible risks
from the development of prices of commodities and energy
are analyzed on an ongoing basis in order to be able to act
swiftly to any changes on the market.
CREDIT AND DEFAULT RISKChanneling excess liquidity into investments also
exposes the group to counterparty risks. Partial or
complete default by a counterparty, for example in respect
of their obligation to repay interest and principal, would
have a negative impact on the Porsche AG group's income
statement and liquidity. The credit and default risk
arising from financial assets involves the risk of default
by counterparties, and therefore comprises at a maximum the
amount of the claims from recognized carrying amounts
receivable against the respective counterparty. The maximum
credit and default risk is reduced by collateral held.
Vehicles, collateral assignments, guarantees and cash are
used as collateral. In order to manage these risks, the
Porsche AG group has set out guidelines to ensure that
transactions are concluded only in approved financial
instruments, only with approved counterparties and only on
the admissible scale.
LIQUIDITY RISKThe Porsche AG group depends on being able to
sufficiently cover its financing needs. There is a possible
liquidity risk in not being able to ensure the required
capital by raising funds or financing this at appropriate
conditions, which in turn could have a significant negative
impact on the Porsche AG group's net assets, financial
position and results of operations. The solvency and
liquidity of the Porsche AG group are continuously secured
by rolling liquidity planning, a cash liquidity reserve,
guaranteed credit lines and incurring loans. There is a
master loan agreement with the Volkswagen Group. In certain
countries (e.g., China), the Porsche AG group can only use
local cash funds for cross-border transactions pursuant to
exchange controls. There are no other material
restrictions.
The Porsche AG group mainly generates liquidity through
its business operations, external financing and the
securitization of receivables. The funds are chiefly used
to finance net working capital and capital expenditures and
to cover the finance requirements of the leasing and sales
financing business. Operational liquidity management uses
cash pools in which material cash and cash equivalents are
pooled on a daily basis. There is a cash pool in place with
Volkswagen AG. This enables liquidity surpluses and
shortfalls to be controlled in line with requirements. The
maturities of financial assets and financial liabilities as
well as forecasts of cash flows from operating activities
are included in short and medium-term liquidity management.
REPORT ON OPPORTUNITIESIn all business decisions, in addition to the effective
management of risks, the task is also to identify and seize
opportunities in the best possible way. This is
systematically implemented within the scope of opportunity
management. This ensures success in the long term.
Opportunity management, which includes revenue and cost
optimizations as well as product improvements, among other
things, is integrated in the Porsche AG group's operational
structure and process organization and is closely linked to
our strategic goals. For this purpose, the international
environment of our business model is analyzed on an ongoing
basis in order to identify trends, e.g., from the market,
technology, society and environment as well as changes in
key factors at an early stage. Scenario analyses are used
to monitor relevant developments in order to identify
potential effects for the Porsche AG group. Strategic
business planning, the affected business divisions and
controlling are included in this process. Potential
opportunities in the medium and short term are identified
by the business divisions and operationalized. The Porsche
AG group's long-term competitiveness and future viability
is to be ensured through further efficiency and opportunity
initiatives, among others, in addition to the systematic
implementation of the strategy. The identification of
specific targets from these initiatives offer additional
potential to generate opportunities.
In addition to the improvement of the global economy
once the current Russia-Ukraine crisis and its impact and
the coronavirus pandemic have been overcome and an earlier
normalization of the semiconductor supply situation, there
are considerable opportunities through potential additional
synergies with new vehicle architectures in association
with the Volkswagen Group. These synergy effects pertain to
Development, Procurement and Production in particular.
Furthermore, the expansion of the market share through the
broad and attractive product portfolio, the extension of
existing/development of new business areas and a further
strengthening of the Porsche AG group brand in conjunction
with additional price potential may have a favorable impact
and lead to the generation of further earnings potential.
Stable earnings indicators and advantageous cost structures
combined with a high level of financial strength provide
the financial headroom for future investments in products,
technologies and services, even in a challenging
environment.
Stringent currency management also allows us to generate
potential opportunities. The Porsche AG group is managed by
targets and opportunities with a clear focus on a
sustainable increase in value of the group.
SUMMARYThe overall risk and opportunity situation for the
Porsche AG group arises from the aforementioned individual
risks and opportunities. Based on the information and
estimates currently available, there are no risks which
could endanger the ability of significant parts of the
Porsche AG group or the Porsche AG group as a whole to
continue as a going concern.
Further informationFor more information on events after the reporting date
and significant transactions with related parties, please
refer to the notes to the consolidated financial
statements.
Interim Consolidated Financial Report (Condensed)CONSOLIDATED INCOME STATEMENTOF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFTFOR THE PERIOD FROM JANUARY 1 TO JUNE 30scrollen
1 In the first half of 2022, "Interest result
and other financial result" contains an impairment loss of
€37 million on Bertrandt AG that has been accounted
for using the equity method.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEOF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFTFOR THE PERIOD FROM JANUARY 1 TO JUNE 30scrollen
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONOF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFTAS OF JUNE 30, 2022 AND AS OF DECEMBER 31, 2021Assetsscrollen
Equity and liabilitiesscrollen
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYOF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFTFOR THE PERIOD FROM JANUARY 1 TO JUNE 30scrollen
scrollen
CONSOLIDATED STATEMENT OF CASH FLOWSOF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFTFOR THE PERIOD FROM JANUARY 1 TO JUNE 30scrollen
1 Offset against reversals of impairment losses.
The statement of cash flows is explained in the note on
the statement of cash flows.
Notes to the Consolidated Financial StatementsIFRS (INTERNATIONAL FINANCIAL REPORTING STANDARDS) ACCOUNTINGPursuant to Regulation (EC) No. 1606/2002 of the
European Parliament and of the Council, Dr. Ing. h.c. F.
Porsche Aktiengesellschaft ("Porsche AG") has prepared its
consolidated financial statements for fiscal year 2021 in
accordance with the international accounting standards
adopted by the European Union, the International Financial
Reporting Standards (IFRSs). Accordingly, these interim
consolidated financial statements as of June 30, 2022 have
also been prepared in accordance with IAS 34 (Interim
Financial Reporting) and have a reduced scope of reporting
compared to the consolidated financial statements.
All amounts are rounded in line with common business
practice; this can lead to minor differences in total
amounts.
ACCOUNTING POLICIESThe Porsche AG group has applied all accounting
pronouncements adopted by the EU and effective for periods
beginning from January 1, 2022.
IFRS 5 - ASSETS AND LIABILITIES HELD FOR DISTRIBUTIONNon-current assets or disposal groups comprising assets
and liabilities are classified as held for sale or held for
distribution if it is highly probable that they will be
mainly recovered through a sale or distribution transaction
rather than through continuing use.
These assets or the disposal group are generally
recognized at the lower of the carrying amount and fair
value less costs to sell. Any impairment loss of a disposal
group is initially allocated to goodwill and then to the
remaining assets and liabilities on a pro rata basis - with
the exception that no loss is allocated to inventories,
financial assets, deferred tax assets, assets in connection
with employee benefits, investment property or biological
assets, which remain accounted for in accordance with the
group's other accounting policies.
For distributions in kind to the owners of a company
acting in their capacity as owners, for which the asset is
ultimately controlled by the same party or parties before
and after the distribution, it is deemed permissible to
measure the obligation regarding the distribution in kind
at the carrying amount or fair value of the asset to be
distributed. The Porsche AG group has decided to recognize
liabilities from distributions in kind at the carrying
amount.
Impairment losses upon initial classification as held
for sale or held for distribution and subsequent gains and
losses upon remeasurement are recognized in profit or loss.
Intangible assets and property, plant and equipment are no
longer amortized or depreciated, and each investee
accounted for using the equity method is no longer
accounted for using the equity method as soon as they are
classified as held for sale or held for distribution.
OTHER ACCOUNTING POLICIESFor these interim consolidated financial statements, a
discount rate of 3.3% (December 31, 2021: 1.4%) was used
for pension provisions in Germany. Due to the sustained
increase in inflation expectations, future pension
increases in Germany were adjusted to 2.0% as of June 30,
2022 (December 31, 2021: 1.7%). These changes largely
caused the actuarial gain of €2,062 million recognized
in the statement of comprehensive income. Furthermore,
adjustments to the interest rates to measure other
provisions had a positive effect on the financial result of
€99 million.
The income tax expense for the interim consolidated
financial statements is calculated pursuant to IAS 34
(Interim Financial Reporting) based on the annual average
tax rate expected for the entire fiscal year.
Taking the condensed presentation into account,
generally the same accounting policies and consolidation
principles have been used when preparing the interim
consolidated financial statements and determining the
comparative figures for the prior year as those used in the
2021 consolidated financial statements. A detailed
description of these methods can be found in the notes to
the 2021 consolidated financial statements under
"Accounting policies".
In addition, the effects of new standards are described
in more detail in the notes to the 2021 consolidated
financial statements under "New and amended standards and
interpretations".
SIGNIFICANT EVENTSDIESEL ISSUEOn November 2, 2015, the United States Environmental
Protection Agency (EPA) issued a notice of violation of the
Clean Air Act to Volkswagen AG, Audi AG, Volkswagen Group
of America, Inc., Porsche AG and Porsche Cars North
America, Inc. The notice alleges that certain 3.0 liter V6
Volkswagen group diesel engines are in contravention of the
applicable emissions certification standards. A detailed
explanation can be found in the 2021 consolidated financial
statements under "Litigation".
More information on litigation in connection with the
diesel issue can be found here under "Litigation".
RUSSIA-UKRAINE CONFLICT / COVID-19 PANDEMIC / SEMICONDUCTOR SHORTAGESThe start of the Russia-Ukraine conflict in February
2022 led not only to a humanitarian crisis but also brought
market upheaval around the world. There are significant
price rises, particularly on the energy and commodity
markets, and significant increases in inflation rates have
been observed internationally. In addition, the parts
supply shortages intensified in this context directly after
the start of the conflict. In the Porsche AG group, this
particularly affected the supply of cable harnesses from
Ukraine. The Porsche AG group took immediate action to
clear these supply bottlenecks from Ukraine, with the
result that there are no material bottlenecks in this
regard at present.
Moreover, various sanctions have been imposed on Russia
as a result of the conflict, especially by the EU and the
USA. These sanctions restrict economic transactions with
Russia and have an impact on the Russian companies of the
Porsche AG group and on sales of vehicles to Russia. They
also affect the new financial services business in Russia
and could potentially lead to impairment risks to existing
leased assets and financial receivables. Against the
backdrop of the Russia-Ukraine conflict and the resulting
consequences, Porsche AG has decided to halt vehicle
exports to Russia. In addition, the respective sanction
requirements are also being complied with in relation to
parts supplies and the provision of technical information.
To date, only an insignificant number of complaints has
been received from customers, service providers, or other
contract partners. It is not clear at present how the
situation with develop further.
Triggered by the Russia-Ukraine conflict and its
indirect effects, significant assets of the Porsche AG
group were tested for impairment as of 30 June 2022. The
impairment test did not reveal any need for impairment
beyond the normal measurement. In connection with the
measurement of liabilities against the backdrop of the
Russia-Ukraine conflict, expenses in the mid-twodigit
million euro range were recognized in the first half of
2022, primarily in the other operating result. Given the
very dynamic developments, it is, however, not possible at
present to make a reliable assessment of the many different
effects of the growing supply insecurity affecting energy
resources in Europe (e.g., the gas shortage).
As a result of the turbulence on the money and capital
markets due to the Russia-Ukraine conflict, income in the
mid-two-digit million euro range had to be recognized in
the other operating result, primarily from the premature
termination of the currency hedge.
Apart from the effects of the Russia-Ukraine conflict,
the global spread of the Omicron variant of coronavirus
SARS-CoV-2 continued to lead to considerable disruption to
everyday life and the economy in a number of regions in the
first half of 2022. In China particularly, local infection
outbreaks during the first half of 2022 led to tight
restrictions under the zero-Covid strategy being pursued
there, resulting in economic constraints and disruption to
supply chains.
In addition to uncertainty and measures being taken
around the world to deal with the Covid-19 pandemic,
persistent semiconductor supply shortages and the resulting
limited availability of vehicles meant that demand could
not be adequately met in some regions.
IFRS 5 - ASSETS HELD FOR DISTRIBUTIONNon-current assets are classified as held for
distribution if it is highly probable that they will mainly
be recovered through a distribution transaction rather than
through continuing use.
In the second quarter, the shareholders of Porsche AG
approved the spin-off of assets, primarily non-current loan
receivables and other financial assets due from Porsche
Holding Stuttgart GmbH as well as receivables due from
Volkswagen AG from the in-house bank account, which are
classified as cash and cash equivalents, to another company
of the Volkswagen AG Group. As of June 30, 2022 and thus
before the spin-offs take effect through entry in the
commercial register at the beginning of July 2022, these
financial assets are therefore classified as assets held
for distribution.
The assets held for distribution are stated at their
carrying amount and break down as follows:
scrollen
The assets are allocated to the automotive segment.
Due to the spin-off resolutions, liabilities from
distributions in kind of €11,881 million were
recognized as of June 30, 2022, leading to a decrease in
the capital reserve and retained earnings.
BASIS OF CONSOLIDATIONIn addition to Porsche AG, which has its registered
offices in Stuttgart and is registered at the Stuttgart
Local Court under HRB 730623, the consolidated financial
statements include all material German and foreign
subsidiaries, including structured entities, that are
controlled directly or indirectly by Porsche AG. Control
exists if Porsche AG has power over the potential
subsidiary, directly or indirectly, as a result of voting
rights or other rights, participates in positive or
negative variable returns from the potential subsidiary and
is able to affect those returns. There are no significant
restrictions.
RIMAC GROUP D.O.O.The Porsche AG group had already increased its
shareholding in the Croatian technology group Rimac Group
d.o.o. in the past year. In the course of an additional
financing round, the Porsche AG group also made an
investment in the tens of millions. Following the
transaction, the Porsche AG group still holds more than 20%
of Rimac Group d.o.o., which it continues to account for
using the equity method. Porsche AG group and Rimac Group
d.o.o. have thus taken the next step in their collaboration
toward the digital and electrified future of mobility.
IONITY HOLDING GMBH & CO. KGIONITY Holding GmbH & Co. KG operates what is
currently Europe's largest high-power charging network that
is accessible for most electric vehicles. With a view to
further expanding the charging infrastructure, the
investment that had already been agreed on in the past year
was implemented by a financial investor in 2022. The
Porsche AG group's shareholding now amounts to around 15%
and it has significant influence, which is why IONITY
Holding GmbH & Co. KG continues to be accounted for
using the equity method.
EXPLANATIONS ON THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS1. SALES REVENUESTRUCTURE OF SALES REVENUE OF THE GROUP IN H1 2022scrollen
STRUCTURE OF SALES REVENUE OF THE GROUP IN H1 2021scrollen
Other revenue contains insurance premiums received from
used vehicle warranty insurance policies. Otherwise, other
revenue mainly contains income from mobile services,
consulting, development services and workshop services.
2. COST OF SALESCost of sales amounted to €12,869 million (prior
year: €12,036 million) and mainly comprises production
materials, personnel expenses, non-staff overheads and
depreciation and amortization.
Cost of sales also contains interest expenses
attributable to the financial services business amounting
to €37 million (prior year: €30 million),
impairment losses on leased assets amounting to €84
million (prior year: €68 million) and expenses for
indemnification payments from warranty insurance for used
vehicles' insurance amounting to €36 million (prior
year: €23 million).
3. RESEARCH AND DEVELOPMENT COSTSscrollen
4. EARNINGS PER SHAREBasic earnings per share are calculated by dividing the
share of the result of Porsche AG's shareholders by the
weighted average number of ordinary and preferred shares
outstanding during the reporting year. By amendment to the
articles of association of Porsche AG effective August 15,
2022 the number of issued shares changes to 455,500,000
ordinary shares and 455,500,000 preferred shares. As this
change was made before the financial statements were
approved for publication, this change has been taken into
account retrospectively for all periods presented.
Since there were no transactions in the reporting period
that had a dilutive effect on the number of shares, diluted
earnings per share correspond to the basic earnings per
share.
Pursuant to article 28 (4) of the Articles of
Association of Porsche AG, the preferred shareholders are
entitled to an additional dividend of € 0.01 per
preferred share above the dividend allocable to the
ordinary share.
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5. NON-CURRENT ASSETSDEVELOPMENT OF SELECTED NON-CURRENT ASSETS FROM JANUARY 1 TO JUNE 30, 2022scrollen
In the fiscal year, additions to other equity
investments primarily relate to the acquisition of shares
in FAZUA GmbH (€101 million), the acquisition of an
investment in Group14 Technologies (€92 million) as
well as the acquisition of Porsche Financial Services Korea
Ltd. (€54 million).
Other financial assets come to €702 million (prior
year: €8,596 million) and in the prior year contained
loan receivables due from Porsche Holding Stuttgart GmbH of
€8,135 million. See also the explanations in the note
"Significant events (section: IFRS 5 - Assets held for
distribution)"
6. INVENTORIESscrollen
The write-downs recognized in profit or loss in the
reporting period amounted to €62 million (prior year:
€55 million) and largely resulted from the
remeasurement of used vehicles. Reversals of write-downs of
€1 million (prior year: €1 million) were
recognized in profit or loss in the reporting period, also
resulting primarily from the remeasurement of used
vehicles.
7. CURRENT OTHER FINANCIAL ASSETS AND OTHER RECEIVABLESscrollen
In the period from January 1 to June 30, 2022, the
operating result was negatively impacted by impairment
losses and reversals of impairment losses on non-current
and current financial assets amounting to €4 million
(prior year: €3 million).
Other financial assets contain receivables from
Volkswagen AG of €0 million (prior year: €2,000
million) and Porsche Holding Stuttgart GmbH of €6
million (prior year: €2,058 million). These relate to
the current clearing account and interest receivables of
Porsche AG. See also the explanations in the note
"Significant events (section: IFRS 5 - Assets held for
distribution)".
No significant impairment losses were recognized for
other financial assets.
8. EQUITYPorsche AG's subscribed capital amounts to
€45,500,000 (prior year: €45,500,000) and is
divided into 45,500,000 (prior year: 45,500,000)
no-par-value shares, each with a pro rata share of €1
of the share capital. For changes during the year, please
see the explanations in the note "Significant events
(section: IFRS 5 - Assets held for distribution)" and
"Significant events after the reporting date".
Non-controlling interests in equity relate to 25 per
cent of the shares in Porsche Taiwan Motors Ltd., Taipei.
9. NON-CURRENT FINANCIAL LIABILITIESscrollen
10. CURRENT FINANCIAL LIABILITIESscrollen
11. FAIR VALUE DISCLOSURESGenerally, the principles and techniques used for fair
value measurement remained unchanged year on year. Detailed
explanations of the measurement principles and techniques
can be found in the "Accounting policies" section of the
2021 consolidated financial statements.
Fair value generally corresponds to the market or quoted
market price. If no active market exists, fair value is
determined using valuation techniques, such as by
discounting the future cash flows at the market interest
rate, or by using recognized option pricing models.
Financial assets and liabilities measured at fair value
in profit or loss consist of derivative financial
instruments to which hedge accounting is not applied. This
primarily includes interest rate swaps, currency swaps and
interest rate/currency swaps as well as options to acquire
equity instruments. Moreover, other equity investments
(shares representing an ownership interest of less than 20%
as a rule) in partnerships (debt instruments) as well as
financial assets held in special funds controlled by the
Porsche AG group are measured at fair value in profit or
loss. Derivative financial instruments to which hedge
accounting is applied are measured at fair value directly
in equity.
Financial assets measured at fair value through other
comprehensive income include equity investments (shares
representing an ownership interest of less than 20% as a
rule) in corporations (equity instruments) for which the
Porsche AG group normally exercises the option of fair
value measurement through other comprehensive income. For
instruments measured through other comprehensive income,
changes in fair value are recognized directly in equity,
taking deferred taxes into account.
Uniform valuation techniques and inputs are used to
measure fair value. The fair value of Level 2 and Level 3
financial instruments is measured in the individual
divisions on the basis of group-wide specifications.
RECONCILIATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION TO CLASSES OF FINANCIAL INSTRUMENTSThe following table shows the reconciliation of the
items in the statement of financial position to the
relevant classes of financial instruments, broken down by
the carrying amount and fair value of the financial
instruments.
The fair value of financial instruments measured at
amortized cost, such as receivables and liabilities, is
calculated by discounting the carrying amount using a
market rate of interest for a similar risk and matching
maturity. For reasons of materiality, the fair value of
current balance sheet items is generally deemed to be their
carrying amount.
The risk variables governing the fair value of the
receivables are risk-adjusted interest rates.
RECONCILIATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION TO CLASSES OF FINANCIAL INSTRUMENTS AS OF JUNE 30, 2022scrollen
1 Other assets that are not financial assets are
not included (other receivables and deferred tax assets:
€1,342 million).
RECONCILIATION OF ITEMS IN THE STATEMENT OF FINANCIAL POSITION TO CLASSES OF FINANCIAL INSTRUMENTS AS OF DECEMBER 31, 2021scrollen
1 Other assets that are not financial assets are
not included (other receivables and deferred tax assets:
€980 million).
The class "Not allocated to a measurement category"
primarily includes lease receivables, lease liabilities,
investments accounted for using the equity method as well
as investments in non-consolidated affiliates.
Lease receivables have a carrying amount of €1,736
million (prior year: €1,714 million) and a fair value
of €1,640 million (prior year: €1,765 million).
As a result of the increased number of time deposits
with an original contractual term of more than 3 months,
these time deposits have been recognized together with
securities as of June 30, 2022.
The tables below provide an overview of the financial
assets and liabilities measured at fair value:
FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE BY LEVELscrollen
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DERIVATIVE FINANCIAL INSTRUMENTS INCLUDED IN HEDGE ACCOUNTING BY LEVELscrollen
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Fair values are allocated to the levels of the fair
value hierarchy based on the availability of observable
market prices. Level 1 shows the fair values of financial
instruments where a quoted price is directly available on
active markets. This includes securities issued by the
Porsche AG group. Fair values in level 2, such as
derivatives, are derived from market data using market
valuation techniques. These market data include in
particular currency exchange rates and yield curves which
are observable on the relevant markets and can be obtained
from pricing service providers. Level 3 fair values are
calculated using valuation techniques with inputs that are
not based on directly observable market data. In
particular, the Porsche AG group allocated other equity
investments and options on equity instruments to level 3.
Equity instruments are primarily measured on the basis of
the respective business plans and entity-specific discount
rates.
The table below summarizes the changes in items in the
statement of financial position measured at fair value and
allocated to level 3:
CHANGES IN ITEMS IN THE STATEMENT OF FINANCIAL POSITION MEASURED AT FAIR VALUE BASED ON LEVEL 3scrollen
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Transfers between the levels of the fair value hierarchy
are generally reported as of the respective reporting
dates.
There were no transfers between the levels of the fair
value hierarchy during the reporting period.
The key risk variable for options on equity instruments
held by the company is the corresponding enterprise value.
A sensitivity analysis is used to present the effects of a
change in the risk variable on profit after tax.
If the assumed enterprise values had been 10 per cent
higher as of June 30, 2022, profit after tax would have
been €6 million (prior year: €4 million) higher.
If the assumed enterprise values had been 10 per cent
lower, profit after tax would have been €6 million
(prior year: €4 million) lower.
If the financial performance of the equity investments
measured at fair value as of June 30, 2022 had been 10 per
cent better, equity would have been €15 million higher
(prior year: €4 million) and profit after tax €4
million higher (prior year: €2 million). If the
financial performance of the equity investments measured at
fair value had been 10 per cent worse, equity would have
been €15 million lower (prior year: €4 million)
and profit after tax €4 million lower (prior year:
€2 million).
12. STATEMENT OF CASH FLOWSThe statement of cash flows shows the cash inflow within
the Porsche AG group. Cash and cash equivalents according
to the statement of cash flows comprise bank balances,
checks, cash on hand, time deposits with an original
contractual term of up to 3 months and funds due on demand.
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13. SEGMENT REPORTINGThe segments are based on the internal management and
reporting within the Porsche AG group. This takes into
account the group objectives and policies set by the
Executive Board of Porsche AG. Segment reporting is made up
of the two reportable segments automotive and financial
services.
The activities of the automotive segments cover the
development, manufacturing and sale of vehicles as well as
related services.
The activity of the financial services segment comprises
customer and dealer financing, the leasing business as well
as mobility services and other finance-related services.
The purchase price allocation from acquired companies is
directly allocated to the corresponding segments.
In the Porsche AG group, the segment result is
determined on the basis of the operating profit after tax.
Reconciliation includes consolidation between the
segments.
The business relationships between the companies of the
segments of the Porsche AG group are generally based on
arm's length prices.
REPORTING SEGMENTS H1 2022scrollen
REPORTING SEGMENTS H1 2021scrollen
RECONCILIATIONscrollen
BY REGION H1 2022scrollen
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BY REGION H1 2021scrollen
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1 excl. Mexico
Sales revenues allocated to the regions in accordance
with the destination principle.
14. RELATED PARTY DISCLOSURESAs of the reporting date, Porsche AG is a subsidiary of
Porsche Holding Stuttgart GmbH, Stuttgart. Since August 1,
2012, Porsche AG and its fully consolidated subsidiaries
together with Porsche Holding Stuttgart GmbH have been
included in the consolidated financial statements of
Volkswagen AG based on the control concept.
Porsche SE holds the majority of voting rights in
Volkswagen AG.
The creation of rights of appointment for the State of
Lower Saxony was resolved at the extraordinary general
meeting of Volkswagen AG on 3 December 2009. This means
that, even though it holds the majority of voting rights of
Volkswagen AG, Porsche SE cannot determine the majority of
the members of Volkswagen AG's supervisory board for as
long as the State of Lower Saxony holds at least 15% of
Volkswagen AG's ordinary shares. The Porsche SE group
(Porsche SE) is therefore classified as a related party as
defined by IAS 24.
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Receivables from the Volkswagen AG Group largely relate
to loans granted of €474 million (December 31, 2021:
€2,348 million) as well as trade receivables of
€344 million (December 31, 2021: €493 million).
Receivables from non-consolidated subsidiaries also
primarily result from loans granted of €248 million
(December 31, 2021: €89 million) as well as from trade
of €22 million (December 31, 2021: €12 million).
There is a master loan agreement with the Volkswagen
group for a line of € 4,000 million (amount drawn:
€ 0 million; prior year: € 0 million).
Transactions with related parties are regularly
conducted at arm's length.
With the conclusion of the notarized deed of the
spin-off resolutions, liabilities from distributions in
kind have been recognized at the carrying amount of the
assets being spun off (€11,881 million) due to Porsche
Holding Stuttgart GmbH. See also the explanations in the
note "Significant events (section: IFRS 5 - Assets held for
distribution)" and "Significant events after the reporting
date".
Write-downs of €10 million (prior year: €10
million) were recognized in respect of the outstanding
receivables from related parties. Expenses for this purpose
in the first half of 2022 amounted to €0 million
(prior year: €0 million).
The maximum credit risk for financial guarantees issued
to joint ventures amounted to €73 million (prior year:
€73 million).
From January to June, the Porsche AG group made capital
contributions at related parties of €227 million
(prior year: €11 million).
Furthermore, Porsche AG received a capital contribution
of €257 million from Porsche Holding Stuttgart GmbH in
the first six months of 2022. In the first six months of
2021, this capital contribution amounted to €254
million.
15. LITIGATIONDIESEL ISSUEIn July 2017, in connection with the diesel issue, the
public prosecutor's office in Stuttgart had instigated a
criminal investigation against an Executive Board member as
well as a total of six employees or former employees of
Porsche AG on suspicion of fraud and illegal advertising.
Proceedings against an Executive Board member have since
been discontinued without determining any misconduct
pursuant to section 153a of the German Code of Criminal
Procedure (Strafprozessordnung - StPO). A penalty order was
also issued against a Porsche employee. This only relates
to the Cayenne V8 TDI EU6 and to a period as of 2016. The
penalty order has since become legally binding, meaning
that these proceedings have also come to an end. According
to the information currently available, the other
individual proceedings are also expected to be closed
shortly in accordance with section 153 StPO and section
153a StPO.
In July 2022, the European Court of Justice (ECJ) ruled
that a so-called thermal window (i.e. a built-in
temperature-dependent emissions control feature) in the
range of 15°C and 33°C outside temperature
represents a defeat device. In this context, the ECJ has
developed a new, unwritten criterion according to which a
thermal window, even if it serves to prevent sudden and
extraordinary damage, is inadmissible if it is active for
the "largest part of a year under the driving conditions
which are acutally prevailing in the European Union area".
Volkswagen Group and Porsche AG are assessing the effects
of this decision and are in discussion with the
authorities.
ADDITIONAL IMPORTANT LEGAL CASESIn connection with the amended antitrust class action,
which was initially dismissed with prejudice by the
Northern District of California and which alleged that
several automobile manufacturers, including Porsche AG and
other group companies, had conspired to unlawfully increase
vehicle prices in violation of US antitrust and consumer
protection law, the Ninth Circuit Court of Appeals in
January 2022 dismissed plaintiffs' motion (filed at the end
of 2021) for a new hearing on the decision in which the
court had affirmed the judgment of the US District Court.
In February 2022, the District Court also denied
plaintiffs' motion to set aside its judgment and to be
allowed to file a new complaint. In June 2022, the US
Supreme Court definitively rejected the petition filed by
the plaintiffs against this decision.
In March 2022, the European Commission and the
Competition and Markets Authority (CMA), the English
antitrust authorities, searched the premises of various
automotive manufacturers and automotive industry
organizations and/or served them with formal requests for
information. Volkswagen AG has received a group-wide
information request from the European Commission. The
investigation relates to European, Japanese, and Korean
manufacturers as well as national organizations operating
in such countries and the European organization European
Automobile Manufacturers' Association (ACEA), which are
suspected of having agreed from 2001/2002 to the present to
avoid paying for the services of recycling companies that
dispose of end-of-life vehicles (ELV). Also alleged is an
agreement to refrain from competitive use of ELV issues,
that is, not to publicize relevant recycling data for
competitive purposes. The violation under investigation is
alleged to have taken place in particular in working groups
of the ACEA. A response was given to the European
Commission's information request.
The public prosecutor's office in Stuttgart, had
instigated a criminal investigation against twelve (former)
employees at Porsche AG regarding issues in connection with
gasoline-fueled vehicles. Proceedings against all those
accused have since been closed pursuant to section 153
StPO. The public prosecutor's office has not instigated
administrative fine proceedings against the company. The
internal investigations into this matter at Porsche AG have
largely been completed. Furthermore, the US Department of
Justice ended proceedings on June 2, 2022 without
consequence for the Porsche AG group. A comprehensive
settlement agreement is aimed to be reached with the CARB
(California Air Resources Board) in summer 2022. Talks with
other authorities are still ongoing.
In accordance with IAS 37.92, no further disclosures are
made in respect of estimates of the financial impact or
disclosures relating to uncertainties surrounding the
amount or timing of provisions and contingent liabilities
in connection with material litigation, so as not to
prejudice the outcome of the proceedings or the company's
interests.
Other than that, there were no significant changes in
the reporting year compared to the detailed explanations
contained in the 2021 consolidated financial statements
under "Litigation".
16. CONTINGENT LIABILITIESContingent liabilities increased by €75 million to
€117 million compared to the 2021 consolidated
financial statements, primarily as a result of recognizing
additional legal and product-related matters.
17. OTHER FINANCIAL OBLIGATIONSOther financial obligations increased by €995
million to €3,850 million overall compared to the 2021
consolidated financial statements. The increase is
primarily attributable to obligations from development,
supply and service agreements.
SIGNIFICANT EVENTS AFTER THE REPORTING DATEAt the beginning of July 2022, the spin-offs (under
transformation law) of the assets held for distribution
were formerly entered in the commercial register. As a
result, the assets held for distribution and the
corresponding liabilities from distributions in kind were
derecognized. See also the explanations in the note
"Significant events".
At the beginning of August 2022, the annual general
meeting resolved to perform a capital increase from company
funds. This was entered in the commercial register on
August 15, 2022. The capital increase raises the company's
share capital to € 911,000,000, which is divided into
455,500,000 ordinary shares and 455,500,000 non-voting
preferred shares. For each no-par value share, an imputed
share of € 1.00 in the share capital is attributable
to the sole shareholder of the company.
Responsibility StatementTo the best of our knowledge, and in accordance with the
applicable reporting principles for interim financial
reporting, the condensed interim consolidated financial
statements prepared in accordance with German accepted
accounting principles give a true and fair view of the
assets, liabilities, financial position and profit or loss
of the Group, and the interim Group management report
includes a fair review of the development and performance
of the business and the position of the Group, together
with a description of the material opportunities and risks
associated with the expected development of the Group for
the remaining months of the fiscal year.
Stuttgart, August 25, 2022
Porsche Aktiengesellschaft
The Executive Board
PUBLISHERDr. Ing. h.c. F. Porsche AG
D-70435 Stuttgart
Germany
Tel. +49 711 911-0
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