Porsche 2005 Annual Report Download - page 7

The 911 model series made the biggest contribution to our
total sales in the review year. In the second half of the 2005/06
fiscal year, the current 911 Turbo, for example, provided the
public with impressive proof of Porsche’s present technical pro-
wess in sports car construction. The enthusiasm generated
by this vehicle is also reflected in the number of orders placed.
In the first full sales year alone, Porsche is expecting sales
of 6,000 units for the 911 Turbo. And through the 911 Targa
we have demonstrated the optical potential of the 911 model
series.
We are also more than satisfied with sales of the Boxster model
series. The Cayman S, launched in December 2005 and joined
in July 2006 by the basic version, gives us two extremely at-
tractive mid-engined sports coupés. The Cayman captures the
imagination with both its technical details and its unusual visual
appearance. This thoroughbred sports car, which has filled
the gap between the Boxster and the 911 Carrera, accounted
for about 50-percent of sales in the Boxster model series in
the last fiscal year.
Equally unfounded is the danger that growth could be at the
expense of product quality. On the contrary: in major quality
rankings, such as the J.D. Power study, Porsche now occupies
top rankings. That is also a sign that we are fully in control of
our production processes, whether in Zuffenhausen or Leipzig.
Quality will remain a top priority at Porsche.
We demonstrate the same consistency when it comes to pro-
tecting our financial activities. Porsche takes profit margins
much more seriously than unit numbers. The top position we
enjoy as the world’s most profitable automobile manufacturer
guarantees our independence and our room for maneuver.
As conscientious business people who look to the long term,
we also know how important it is to be conservative in balanc-
ing our accounts, to use our financial resources efficiently
and to look ahead to protect ourselves from possible future
risks – such as currency fluctuations.
This far-sighted approach is also appreciated on the inter-
national capital markets. Launched at the beginning of 2006,
our two bonds for financing the VW holding met with an extra-
ordinarily high level of demand from investors and were
hugely over-subscribed. They offered first-class conditions,
even though Porsche does not have the relevant rating.
We can assure our customers, employees, partners and share-
holders that we will not be resting on our laurels. It is easy to
get used to sustained business success but it is imperative
to fight hard for this success each and every day.
And hard work does pay off in the end. During the last fiscal
year, our profits rose disproportionately to reach new dimen-
sions. The reasons for this included specific factors such as
the sale of our subsidiary CTS and the inclusion of the Volks-
wagen holding in our accounts. But even leaving aside these
factors, profits from Porsche core business rose more steeply
than sales. This shows that we know our business at Porsche.
It is also clear that Porsche cannot achieve these record
growth rates every year. One-off balance-sheet effects only
influence profits in the short term. Nevertheless: we will main-
tain our course as far as profits are concerned.
You may rest assured that we will continue to put Porsche’s
success above everything else. That also holds true for our
stake in Volkswagen, which will bring us good dividends in
the future.
Dr. Wendelin Wiedeking
President and Chief Executive Officer
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