Porsche 2004 Annual Report Download - page 32

The renewed improvement in the earnings situation was also expressed
by a higher profit per share.
Porsche Stock28
Outstanding Long-Term Increase in Value
Long-term performance of Porsche stock has been exceptionally
good. If the quoted price is examined for the past ten fiscal years,
that is to say on the last day of each annual period from July 31,1995
to July 31, 2005, it will be seen to have risen from 33.75 Euro to
654 Euro, an increase of 1,838 percent compared with a rise in the
Dax index of only 120 percent.
The increase in the value of a Porsche stockholding in the same ten-
year period has been equally positive: if the sum of 10,000 Euro had
been invested on July 31, 1995, it would have been worth – including
dividends – 203,296 Euro on July 31, 2005.
Increase Profit per Share
Porsche AG’s earnings situation has improved yet again, as reflected in
the increased profit per share (calculated for the first time according to
IFRS accounting rules). The result rose in the review year to 44.68 Euro
per share of common stock (previous year: 39.63 Euro), and 44.74
Euro per share of prefered stock (previous year: 39.69 Euro).
There will also be an increase in dividends. For the 2004/05 fiscal
year, the Annual General Meeting will be invited to recommend the
payment of a dividend of 4.94 Euro per share of common stock
(previous year: 3.94 Euro) and 5.00 Euro (previous year: 4.00 Euro)
per share of preference stock. The total dividend payable in respect
of the past fiscal year on both types of stock will thus be 87.0 million
Euro (previous year: 69.5 million Euro).
Intensive Investor Relations
In recent years, there has been a distinct increase in the amount of
information called for by those active on financial markets. Porsche
accordingly devoted close attention to investors and financial analysts
in the 2004/05 fiscal year. This communication took the form on
the one hand of regular, comprehensive reporting in the media, and
on the other of direct contacts with financial market participants in
the course of numerous individual discussions and at road shows,
car presentations and trade fairs. In all such contacts the company
attached great importance to “speaking with one voice”, that is to
say to unified communication with both the general public and the
financial world.
The current figures and corporate strategy were explained to analysts
at several conferences held specifically for this purpose, in some
cases during active new-model driving sessions, for example presen-
tation of the new Boxster in Austria, the 911 Carrera Cabriolet in
Spain and the Cayman S in Italy. In addition, analysts’ conferences
were held when the annual accounts were presented in December
2004 and on the occasion of the German International Motor Show
(the “IAA”) in September 2005. Furthermore, during the fiscal year
a large number of personal discussions were held with institutional
investors and analysts at the company’s headquarters in Zuffenhausen.
Locally held company presentations continued to play an important
role in Porsche’s contacts with institutional investors. Such events
took place at a wide variety of financial centers in the USA, Germany,
Great Britain, France, Italy, Switzerland and also Scandinavian
countries, and were very well received.
Last but not least, there was an active exchange of information with
private investors who submitted questions to the company’s Investor
Relations staff. Porsche AG also undertook presentations at a number
of stock market forums to which private investors were invited by
investment associations and banks. The annual general meeting for
the 2003/04 fiscal year was held in January 2005 in Stuttgart and
was well attended by some 3,000 stockholders and guests.
Stable Stockholders’ Structure
In turbulent economic periods in particular, a stable circle of stock-
holders represents a corporate asset that should not be underesti-
mated and a firm foundation on which to develop a growth-based
corporate strategy. Frequent changes in ownership, on the other
hand, make it difficult for business activities develop consistently in
the long term. Porsche AG attaches great value to this stability,
with an unchanged distribution of its equity of 45.5 million Euro into
8,750,000 common-stock shares and the same number of stock-
exchange listed preference shares. The common stock is held by
Earnings per Preferred Share in Euro
*Now calculated according to IFRS, previously by the DVFA/SG formula.
00 ⁄ 01 01 ⁄ 02 02 ⁄ 03 03 ⁄ 04* 04 ⁄ 05*
40
30
20
10