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Annual Report 2003 ⁄ 04

Table of contents

  • Page 1
    Annual Report 2003 ⁄ 04

  • Page 2
    Porsche Group Highlights

  • Page 3
    ... cars) Domestic Porsche Export Porsche Other Models Vehicle Sales Porsche 911 928 944 / 968 Boxster Carrera GT Cayenne Production Porsche total 911 Carrera GT 928 944 / 968 Boxster Cayenne Other models Employees Personnel expenses Balance Sheet Total Assets Shareholders' Equity Fixed Assets Capital...

  • Page 4
    ...,149 - 11,668 982.5 Sales Domestic Export Vehicle Sales (new cars) Domestic Porsche Export Porsche Other Models Vehicle Sales Porsche 911 928 944/968 Boxster Carrera GT Cayenne Production Porsche total 911 Carrera GT 928 944/968 Boxster Cayenne Other models Employees Personnel expenses Balance Sheet...

  • Page 5
    Annual Report 2003 ⁄ 04

  • Page 6

  • Page 7
    ... Governance Code 20 Finances 25 Shares 28 Models 34 Sales and Marketing 40 The Markets 49 Services 52 Communication 62 Porsche and the Environment 68 Purchasing 69 The Carrera GT production process 77 Employees 81 Production 84 Research and Development 94 Motor Sport Financial Statements 102 103...

  • Page 8
    ... in a high-quality, superbly engineered package. With the Boxster, the Carrera GT high performance sports car, and the Cayenne SUV, we have during the past few years systematically expanded the core brand and, with all due care, opened up new product segments that complement the 911. It may...

  • Page 9
    ... lofty ambitions for products, processes and customer satisfaction can only be achieved with the support of a high quality and well-motivated team. Here at Porsche, we have such a team - and we believe that they should share in the success of the company by means of special bonus payments. It is our...

  • Page 10
    ... Executive Officer Wolfgang Dürheimer Diplom-Ingenieur Research and Development Holger P. Härter Diplom-Volkswirt Finance and Controlling Harro Harmel Human Resources/Labor Relations Director Michael Macht Diplom-Ingenieur Production and Logistics Hans Riedel Diplom-Kaufmann Sales and Marketing 6

  • Page 11
    ... Board with comprehensive, up-to-date information on the development of the markets and the business lines. The monthly reports, which present and explain important actual quantity and financial data in comparison with budget and prior year figures, play an important role here. The annual financial...

  • Page 12
    Group Status Report 2003 ⁄ 04 Porsche's success continues: new sales, turnover and earnings records. 8

  • Page 13
    9

  • Page 14
    ... dynamic performance of the economy bears no comparison with that of other countries. The country's many structural problems are an important reason for this. The consequential costs of German reunification and the effects of obsolete bureaucracy in the labor and social systems are working against...

  • Page 15
    ... received by customers. Including the high performance Carrera GT sports car, which sold 222 units in its first year, the Porsche Group sold a total of 76,827 vehicles in the 2003/04 fiscal year - a 15.0 percent increase on the previous year's sales total of 66,803 units. The company's growth thus...

  • Page 16
    ... The lion's share of Group turnover was accounted for by vehicle business, which registered a 12.9 percent rise to EUR 4.88 billion. The financial services companies achieved a turnover of EUR 556.0 million. Production start-up of the new 911 Porsche substantially increased the number of vehicles it...

  • Page 17
    ... Partners and Stockholders In the review year, exceptional demands were once again made of Porsche employees in all operating areas both at home and abroad. Activity was concentrated on the production start-up of the new 911, but there was also a need to deal with increased Cayenne production volume...

  • Page 18
    ...processed centrally by the company's Treasury department. Another business area that requires ongoing precautionary measures is leasing. Its expansion - in line with increased group sales - increases the residual value risk involved in disposing of vehicles returned to the Porsche financial services...

  • Page 19
    ...provision for other risks. The company competes with other internationally active companies for skilled specialists and executive managers. Thanks to the attraction of Porsche as an employer, and its current personnel development program, employee satisfaction remains high, and this reduces the risk...

  • Page 20
    ...05 fiscal year. Today, Porsche has a broader and more attractive product program than ever before. The Cayenne established itself in the performance SUV segment within a very short time and is well on its way to consolidating its position in the market. The Carrera GT high performance sports car at...

  • Page 21
    17

  • Page 22
    ...by share trading legislation. Purchases and sales of Porsche preferred stock by members of the Executive or Supervisory Boards are published insofar as this is required by § 15a of the German Stock Corporation Law (AktG). Publication takes place without delay on the Group home page of Porsche AG in...

  • Page 23
    ... according to fixed and performance-related components. Porsche AG does not operate a share option scheme. We will not comply with the non-mandatory regulation in the code requiring payments to board members to be shown individually. In our opinion, the associated disadvantages - particularly the...

  • Page 24
    Finances 2003 ⁄ 04 Liquidity and Cash Flow both went up again in the year under review. 20

  • Page 25
    21

  • Page 26
    ... at our financial services companies was EUR 759.7 million (previous year: EUR 712.5 million). Depreciation also increased to EUR 524.8 million (previous year: EUR 392.2 million), primarily in connection with the start of Cayenne production. At the balance sheet date, Porsche reported assets of...

  • Page 27
    ... a marked increase in sales volume. In addition, Porsche made great strides in achieving sustainable improvements in its business processes. Finally, currency hedging in markets relevant to us made a valuable contribution to the group's favorable earnings performance. Porsche AG's pre-tax earnings...

  • Page 28
    ...Euro, has been invested in various thoroughly sound securities and is used to ensure liquidity. In the past financial year, Porsche Financial Services Inc. issued a private equity offer in the USA, guaranteed by Porsche AG. A bond with a number of parcels, each with a different volume, was issued to...

  • Page 29
    ... growth strategy that has helped the group break one record after another. Porsche stock outperforms its category Business Trend boosts Stock Price Performance During the year under review we observed greater optimism in the financial markets, although the rocketing stock prices of the New Economy...

  • Page 30
    ... US magazine. Business Week was impressed by Porsche's consistent focus on customer needs and the resulting commercial success of the company as clearly evidenced by the growth in profits and the positive development of the Porsche stock price. Financial markets have for many years expressed...

  • Page 31
    ... Capital International index and the Dow Jones STOXX 600. Porsche not only wrote a new and positive chapter in the history of the company with the Cayenne, but also built a brand new factory for this model - in Leipzig. Both the Cayenne sports SUV and the high performance Carrera GT sports car...

  • Page 32
    Models 2003 ⁄ 04 The new-generation 911 and Boxster sports-car models were impressive evidence that Porsche's appeal is as strong as ever. 28

  • Page 33
    29

  • Page 34
    ... water-cooled 911 (996), which was launched seven years ago. In July 2004, the 911 Carrera S with a more powerful 3.8 liter engine was introduced to complement the basic car. The two models differ in the engine, chassis, and in certain exterior and interior details. They offer higher performance...

  • Page 35
    ...a production run of 1,953. It is powered by a 266 bhp engine and finished in an attractive GT silver metallic custom paint. The interior is trimmed in leather interior and there is a custom-color soft top in "cocoa". With the arrival of the new Boxster and the 911 Carrera and Carrera S, the Porsche...

  • Page 36
    ... new ceramic brakes and 18-inch wheels, and the 911 Turbo S is available in custom dark olive metallic at no extra cost. A CD changer, cruise control, and an exclusive embossed pattern on the natural leather option make for an exclusive interior ambience. After more than eight successful years on...

  • Page 37
    ...third Porsche model, the Cayenne, has successfully established itself in the multipurpose sport utility vehicle market. The extensive update changes carried out during the current 2005 model year have further enhanced its appeal. Improvements include the upgraded PSM, which now incorporates a system...

  • Page 38
    ... in its market segment in the same way as the 911 and Boxster. During the year under review an attractively priced V6 entry-level version was added to the model program. The current success of the Cayenne - it accounts for about half of all vehicles leaving the Porsche Group's production lines...

  • Page 39
    ... "Porsche Partner Network" has enabled every authorized dealer to transact business processes electronically and access training packages and information online. The linking of dealers to Porsche AG's systems acts as a basis for selective new-vehicle sales and service business. Because information...

  • Page 40
    ... also helped dealers to develop a marketing presence that was appropriate to the brand. Customers benefit, too, since they get to choose from a range of high quality vehicles at competitive prices offered with a comprehensive warranty - and to deal with well-qualified sales staff. The International...

  • Page 41
    ... steering wheel and the Porsche Communication The Porsche plant in Leipzig attracts customers from all over the world. During the year under review, we welcomed approximately 25,000 visitors - customers collecting their new vehicles directly from the factory, but also individuals and groups...

  • Page 42
    ... the year under review. Tequipment aftermarket products, such as the intelligent load-carrying systems for all current models or the safe, comfortable child seats, not only increase the utility value of the vehicle but also satisfy the emotional needs of owners wishing to enjoy even greater driving...

  • Page 43
    Total membership of Porsche Clubs around the world is now more than 110,000, and still rising. preparatory courses for the German Motor Sport Association competition license - the Driving School has something to offer the most discerning customer. The graded training system is based on various ...

  • Page 44
    The Markets 2003 ⁄ 04 Systematic development of new markets and expansion of the product program have paid off: Porsche has achieved continued growth despite the restrained economic situation. 40

  • Page 45
    41

  • Page 46
    ... climate, even customers in the high-quality sector held back from vehicle purchases in the year under review. The consequence was that even sales of premium products were supported by discounting schemes - particularly in North America, but increasingly in Germany as well. Porsche, however, did...

  • Page 47
    ... to North America remains Porsche's largest market. It is therefore all the more fortunate that the economic situation there has stabilized. This helped Porsche to increase deliveries to customers during the review year by 32.4 percent to 32,763 vehicles, a total that includes Carrera GT deliveries...

  • Page 48
    ...000 test drives of various models were offered to customers at the beginning of the year under review in association with a Porsche dealers' roadshow. The Porsche Carrera GT also went on tour in France. The climax of Porsche France's numerous activities was participation in the Le Mans Classic event...

  • Page 49
    ... sales of the 911 and the Boxster also increased by 10.2 percent to 616 units. During the review year, new importers started business operations, for instance in the Yemen, and further improvements were made to the Porsche dealer network in various markets. New or refurbished dealerships were opened...

  • Page 50
    ... of the dealer network. In March 2004, the largest Austrian Porsche dealership opened in Vienna (Liesing). There are now two Porsche dealerships in the most important location in Austria. Latin America: New Market Shares secured Following the previous year's successes, sales during the review year...

  • Page 51
    ... market through a partner company since October 2000. The 911 and Boxster sports cars and the Cayenne SUV were previously sold through the Moscow-based Porsche dealer "Sport Car Center". 280 units were delivered during the review year. Porsche Russia is planning to open two further Porsche Centers...

  • Page 52
    48

  • Page 53
    ... this business area to development work, the activities of the Porsche Engineering Group are described in the chapter on Research and Development. High Demand for Financial Services In North America, Porsche's largest market, the demand for financial services has stabilized at a high level. Porsche...

  • Page 54
    ... ranges from brief production workshops to optimization of the entire value chain in international companies. A key element in the range of services offered by Porsche Consulting is the Porsche Academy. The Academy offers a range of customized qualifications by means of open and individual seminars...

  • Page 55
    .... The company is currently working on the development of the requisite international distribution network. Simultaneously, Porsche Design's communicative presence is being significantly increased. The company will market customer accessories using the brand name Porsche Design Driver's Selection...

  • Page 56
    Communication 2003 ⁄ 04 A permanent aim of our communication strategy is to enhance the credibility of our products, the brand and their social acceptance. 52

  • Page 57
    53

  • Page 58
    ... Boxster to tough testing at our press driving events. Porsche enjoys an excellent international reputation. This is an important success factor for the company, and one that also promotes positive business development. The function of an effective communication strategy is to maintain and increase...

  • Page 59
    ... press. Journalists needing a deeper, more technically detailed insight into the engine of the new 911 were invited to a technology workshop. This offer proved to be highly popular. 200 international journalists took part in the special workshop at the Porsche Development Center in Weissach...

  • Page 60
    ...to be very important. Open, personal contact strengthens the positive image that the company and brand enjoy with investors around the world. Whether in Zuffenhausen or at road shows held in the most important international financial centers - Porsche seeks communication with market participants. An...

  • Page 61
    ... internal communication systems to ensure that information is conveyed as clearly as possible increase the motivation of the workforce. Porsche uses a variety of means to achieve this. The "Carrera TV" inhouse television service provides informative monthly reports, the "Carrera Mail" bulletin board...

  • Page 62
    ... of sport activities other than motor racing has been the annual Porsche Tennis Grand Prix in Filderstadt near Stuttgart. Almost all the top-ranking women tennis players from all over the world take part in this tournament, which is deeply rooted in the company's corporate communication strategy and...

  • Page 63
    ... manufacturer of exclusive products, Porsche has been able to strengthen its broad-based social acceptance and achieve a high degree of brand empathy. "Porsche DNA" revealed What do all Porsche vehicles have in common? During the review year, Marketing Communications used the "Porsche DNA " sales...

  • Page 64
    ...entire model line. The objective was to communicate the new vehicle's superb qualities to the customer - the best dynamic handling and agility in the SUV segment, a powerful engine, very good off-road capabilities and excellent versatility for family and leisure use. Communicating the 911's Dynamics...

  • Page 65
    ... visitors. Porsche's online used-car search facility, the International Porsche Locator, also developed positively, with approximately 280,000 inquiries per month. At the end of the review year, www.porsche.com provided links to twelve subsidiary companies and 17 other country-specific importers...

  • Page 66
    Porsche and the Environment 2003 ⁄ 04 Porsche, as the world's smallest independent automobile manufacturer, none the less identifies itself absolutely with the goal of environmental protection. The automobile will only have a future if it complies with ecological requirements. 62

  • Page 67
    63

  • Page 68
    ... into these activities". Porsche exports its vehicles to almost every country in the world and must comply with local environmental legislation. For many years the company has proved that it is perfectly possible to design, build, produce and, of course, operate a thoroughbred sports car by methods...

  • Page 69
    ... engine speeds of up to 8,000 rev/min reached by Porsche engines. In addition, a diesel engine of equivalent power output is considerably heavier than a gasoline engine. This weight increase would not only worsen the car's fuel consumption but also have a distinctly adverse effect on dynamic, sports...

  • Page 70
    ... few sport utility vehicles (SUV) that meet the stringent exhaust emission standard, whereas SUV models with diesel engines, which Porsche does not sell, do not meet these standards. Despite our position as the smallest independent automobile manufacturer in the world, Porsche supports the European...

  • Page 71
    ... protection associated with vehicle and engine development: during the year under review more than 300 employees were working at the Weissach development center alone on various tasks associated with environmental protection. The total cost of environmental protection at Porsche AG for the year 2003...

  • Page 72
    ... of its sports cars. The performance of our suppliers for the 996 models that remain in production (such as the 911 Carrera 4S, 911 Turbo and GT3) and all Cayenne variants has also been kept at a consistently high level. In terms of quality, delivery service and cost containment, our partners have...

  • Page 73
    Carrera GT Building this high-performance sports car imposes very severe demands on the workforce.

  • Page 74
    Pre-assembly: Key steps in the pre-assembly process center on installation of the engine. The wiring harness, brake lines and radiator surrounds are attached (large photo). Before this, the rocker shafts are inserted (small photo, left). The engine and transmission are then "married" to the vehicle ...

  • Page 75
    The Carrera GT spearheads the range of Porsche sports cars. With its 612 bhp V10 engine and its uncompromisingly lightweight construction, this high performance sports car incorporates the spirit of the brand's great motor racing tradition. The design of the Carrera GT, which has a top speed of 330 ...

  • Page 76
    72

  • Page 77
    ...the wheel alignment checked and the driver's airbag inserted into the steering wheel (small photos from left to right). At the next assembly station, measurements are taken with a reference gauge in order to ensure that the outer body components are correctly positioned on the chassis (large picture...

  • Page 78
    ...After the side window has been fitted in the door (large photo), one of the next tasks is to attach the front axle assembly to the monocoque bodyshell and test the panel gap widths at the front, after which the Carrera GT can be finally inspected in the light tunnel and leave the testing area (small...

  • Page 79
    75

  • Page 80
    76

  • Page 81
    ... corporate philosophy through the management style. The new management guidelines emphasize the commitment to quality products and processes, lean production and support for our employees. They enable Porsche to establish clear principles for day-to-day working practice - now and in the future. 77

  • Page 82
    ... between Porsche and the Stuttgart Career Academy. During the period under review, three new occupational profiles were introduced into the technical training scheme: vehicle mechatronics engineer specializing in car technology, vehicle mechatronics engineer specializing in vehicle communications...

  • Page 83
    ... circulatory disorders. This will be offered to employees in future with the company and the health insurers contributing to the cost. Porsche also places a high priority on workplace safety, as this is part and parcel of social responsibility. The company is working on all the time on improvements...

  • Page 84
    ...Christmas and special bonuses Employee capital-forming savings plan Vacation bonus Other expenditures Pensions and other retirement benefits Partial retirements until 2005 Partial retirements from 2006 to 2009 Training expenses* Social services* Amounts counted twice Total benefits expense Personal...

  • Page 85
    ... the Carrera GT during the review year. The first 270 of the limited production run of 1,500 high performance sports cars have already left the plant. Training for 911 Production Start-up "Fit for the 911" was the maxim for the event held at our main plant to introduce all production employees to...

  • Page 86
    ...entire assembly area complete with entirely new software are responsible for the quantum leap in vehicle electronics that the new 911 model generation represents. In addition to the 911 production start-up, Porsche began production of the new V10 engine for the Carrera GT during the review year. The...

  • Page 87
    ... manufacturing process. Engine Plant nearing Start-up This system creates a high degree of transparency and therefore speeds up transportation and improves security. Porsche was awarded two first places in the universally respected quality survey published in April 2004 by the renowned US market...

  • Page 88
    Research and Development 2003 ⁄ 04 The final work leading up to the start of production of the new 911 and development of the second Boxster model generation were among the engineers' key activities. 84

  • Page 89
    85

  • Page 90
    ... benefits in the performance, dynamic handling, agility, styling, presence and quality areas. These are necessary if Porsche is to strengthen its leading position in an increasingly competitive sports car market. In addition to the main work of vehicle development, work on streamlining operations...

  • Page 91
    ...Porsche Active Suspension Management (PASM). This lowers the body by ten millimeters and allows each shock absorber to adapt to the current driving environment (changing lane, cornering or load reversals). This system resolves conflicting demands of comfort in day-to-day driving and high-performance...

  • Page 92
    ... the upper market-segment covered by the previous model line during the review year. This model is noted for the high power output (450 bhp) of its 3.6-liter engine, which accelerates this sports car to a top speed of 307 km/ h (192 mph). Typically for Porsche, the quality of the brakes matches the...

  • Page 93
    ...is offered together with an optional sports package that includes a six-speed manual-shift gearbox. The braking performance of the Boxster S has again been improved with the first-time availability of PCCB ceramic brakes - a unique option for a car of this class. The Boxster's standard active safety...

  • Page 94
    ...in the new 911 and Boxster. Porsche customers thus receive the best quality in today's world of highly integrated electronic systems. Automated Assembly of Prototype Bodyshells The importance of software in automobiles has increased rapidly in recent years. In the future, it will play a key role in...

  • Page 95
    ...Porsche AG and Porsche Design Management GmbH and is described in more detail in the "Services" chapter of this report. In the year under review, we completed several high-profile contracts, in particular in the key areas of Total Vehicle Development and Electrics und Electronics. These were mainly...

  • Page 96
    Research and Development 2003 ⁄ 04 92

  • Page 97
    93

  • Page 98
    Motor Sport 2003 ⁄ 04 The Porsche brand symbolizes a great motor-sport tradition. A large number of victories in important races during the review year have strengthened this fine reputation still further. 94

  • Page 99
    95

  • Page 100
    ..., Le Mans, Nürburg Ring and Spa-Francorchamps. One-brand trophy series are also enjoying growing popularity. With these events, Porsche offers its customers an excellent opportunity to take part in motor sport at a professional level. Companies such as Michelin, Exxon Mobil and UPS have supported...

  • Page 101
    ... the number of overall and class victories for the 911 at Daytona to thirty-two, making the 911 the most successful car in the history of this endurance classic. At the end of March 2004, Porsche works driver Sascha Maassen made motor sport history at the 12-hour race at Sebring, also in Florida. In...

  • Page 102
    ... all vehicles are technically identical, making the Porsche Manufacturer's Cup a highly competitive and appealing racing series. Since 2003, these races have featured the 911 GT3 Cup model. This 390 bhp, 1.15 tonne sports car, which uses many of the same components as the roadgoing 911 GT3 RS, is...

  • Page 103
    99

  • Page 104

  • Page 105
    Financial Statements 2003 ⁄ 04

  • Page 106
    ...Porsche Group as of July 31, 2004 Notes July 31, 2004 Tâ,¬ July 31, 2003 Tâ,¬ Assets Fixed Assets Intangible assets Property, plant and equipment Financial assets Leased assets Current Assets Inventories Trade receivables Other assets Marketable securities... Equity Capital stock Capital surplus ...

  • Page 107
    Financial Statements 2003 ⁄ 04 Consolidated Statement of Income of the Porsche Group for the Period August 1, 2003 to July 31, 2004 Notes 2003 ⁄ 04 Tâ,¬ 2002 ⁄ 03 Tâ,¬ 5,582,003 Sales Change in inventories and own work capitalized Total operating revenues Other operating income Cost of ...

  • Page 108
    ... Sheet of Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 Notes July 31, 2004 Tâ,¬ July 31, 2003 Tâ,¬ Assets Fixed Assets Intangible assets Property, plant and equipment Financial assets Current Assets Inventories Trade receivables Other assets Marketable securities Cash and cash equivalents...

  • Page 109
    Financial Statements 2003 ⁄ 04 Statement of Income of Dr. Ing. h.c. F. Porsche AG for the Period August 1, 2003 to July 31, 2004 Notes 2003 ⁄ 04 Tâ,¬ 2002 ⁄ 03 Tâ,¬ 4,852,262 Sales Change in inventories and own work capitalized Total operating revenues Other operating income Cost of ...

  • Page 110
    ...trade liabilities, other liabilities and deferred income Cash provided by operating activities 2. Investing Activities Proceeds from disposals of fixed assets Payments for investments in fixed assets Payments for company acquisitions Cash used in investing activities 3. Financing Activities Payments...

  • Page 111
    Financial Statements 2003 ⁄ 04 Porsche Group Statement of Changes in Shareholders' Equity as of July 31, 2004 Capital stock Tâ,¬ As of July 31, 2002 Dividend payment Transfer to retained earnings from consolidated net income available for distribution 2002 Foreign currency fluctuations Other non...

  • Page 112
    ...purchase accounting in Germany of 156.7 million euro, 4.8 million euro in North America and 2.0 million euro in Europe excluding Germany. Business Segment Reporting for the Porsche Group Vehicles 2003 ⁄ 04 â,¬ million 2002 ⁄ 03 â,¬ million 5,082.8 22.0 1,063.7 4,399.4 590.6 Financial Services...

  • Page 113
    ...Germany 2003 ⁄ 04 â,¬ million 1,393.9 2.6 90.8 32.3 28.1 - 75.0 1,376.3 1,105.2 8.7 2002 ⁄ 03 â,¬ million 1,113.4 1.7 68.8 33.4 60.1 - 67.2 1,341.1 1,125.9 11.4 Rest of the world...210.8 223.0 20.0 61.4 - 146.1 702.7 4.7 - 1,345.9 Porsche Group 2003 ⁄ 04 â,¬ million 6,359.4 - 1,088.0 99.9 58.2 ...

  • Page 114
    .... KG and Porsche Engineering Group GmbH. One associated company in which Porsche AG exercises significant influence is included in the consolidation using the equity method, generally based on the pro rata financial net worth according to the annual or consolidated financial statements. As a result...

  • Page 115
    ... depreciated in the year of acquisition. At Porsche AG, shares in affiliated companies and investments are recorded at acquisition cost or, when deemed necessary, at a lower value. Shares in associated companies are accounted for in the consolidated financial statements using the equitymethod after...

  • Page 116
    ...the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 Raw materials, consumables and supplies are valued at the lower of acquisitions cost or market value. The work and services in process and finished goods valuation includes direct material...

  • Page 117
    ... the new 911 Carrera models and the Boxster models, to the subscription rights as well as to production and administration buildings. The disposals of investments from associated companies in the Group contain pro rata annual results and disposals of equity book values of associated companies that...

  • Page 118
    ... buildings including buildings on third party land 2. Technical equipment and machinery 3. Other equipment, factory and office equipment 4. Advance payments and assets under construction Total Property, Plant and Equipment Financial Assets 1. Investments in associated companies 2. Other investments...

  • Page 119
    Depreciation Reclassification Tâ,¬ July 31, 2004 Tâ,¬ Accumulated Tâ,¬ Current year Tâ,¬ Net Book Value July 31, 2004 Tâ,¬ Net Book Value July 31, 2003 Tâ,¬ 1) 98,572 - ...,819 17,904 49,362 - 109,226 - 4,141 632,662 421,455 1,677,911 136,140 2,868,168 256,753 329,777 1,172,166 - 1,758,696 18,089...

  • Page 120
    ... buildings on third party land 2. Technical equipment and machinery 3. Other equipment, factory and office equipment 4. Advance payments and assets under construction Total Property, Plant and Equipment Financial Assets 1. Investments in affiliated companies 2. Other investments Total Financial...

  • Page 121
    Depreciation Reclassification Tâ,¬ July 31, 2004 Tâ,¬ Accumulated Tâ,¬ Current year Tâ,¬ Net Book Value July 31, 2004 Tâ,¬ Net Book Value July 31, 2003 Tâ,¬ 66,096 - 62,398 3,698 485,358 94,883 580,241 198,422 - 198,422 76,046 - 76,046 286,936 94,...

  • Page 122
    ...85,585) - 579,520 July 31, 2003 Group Tâ,¬ 209,580 - - 1,719 211,299 Porsche AG Tâ,¬ 26,652 367,612 (44,519) 707 394,971 Trade receivables Receivables from affiliated companies Thereof due in more than one year Receivables from companies in which investments are held Total 271,030 - - 54 271,084...

  • Page 123
    ... arising from special lease prepayments are reflected in the consolidated financial statements. (8) Capital Stock The capital stock of Porsche AG amounts to 45.5 million euro and is made up of 8,750,000 common shares and 8,750,000 non-voting preferred shares. Each of the shares accounts for 2.60...

  • Page 124
    ... the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 (11) Minority Interests This position shows the portion of shareholders' equity which relates to third parties (minority interests). (12) Provisions July 31, 2004 Group Tâ,¬ Porsche AG...

  • Page 125
    ... Total Thereof due within one year Tâ,¬ Tâ,¬ Porsche Group Trade payables Bonds payable Liabilities to banks Advance payments received Amounts payable to companies in which investments are held Other financial liabilities Other thereof for taxes thereof for social security Other liabilities Porsche...

  • Page 126
    ... 2003 ⁄ 04 Notes to the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 (16) Sales 2003 ⁄ 04 Group Tâ,¬ Porsche AG Tâ,¬ Group Tâ,¬ 2002 ⁄ 03 Porsche AG Tâ,¬ Business activities Vehicles Parts and accessories Other 4,875,226 655...

  • Page 127
    ... 2,281,310 2,105,666 188,189 2,293,855 Cost of purchased services in the consolidated financial statements mainly includes lease expenditures. (20) Personnel Expenses 2003 ⁄ 04 Group Tâ,¬ Porsche AG Tâ,¬ 596,221 131,493 (46,490) 727,714 2002 ⁄ 03 Group Tâ,¬ 694,749 154,780 (57,292) 849,529...

  • Page 128
    ...to the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 (22) Income from Investments in Other Companies 2003 ⁄ 04 Group Tâ,¬ Porsche AG Tâ,¬ 22,701 (22,324) - 36,377 - 59,078 2002 ⁄ 03 Group Tâ,¬ - - 416 - - 416 Porsche AG Tâ,¬ 85,503...

  • Page 129
    ...banks. Their use is limited to the protection of certain operating sectors and their related investments and financing transactions. Porsche AG has commitments relating to its subsidiaries and investments in the amount of 180 thousand euro. The other financial commitments of the Porsche Group total...

  • Page 130
    ... to the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 (29) Key Figures of Significant Subsidiaries Capital Investment % Shareholders' Net income/ Equity 1) Net loss 1) Tâ,¬ Tâ,¬ Sales Tâ,¬ Employees 2) Domestic Porsche Deutschland...

  • Page 131
    ...secondary segment reporting, the activities are split into the Group's two major business segments: vehicles and financial services. Within the secondary segment reporting, the Financial Services segment mainly includes the leasing and financing business of Porsche vehicles at customers and dealers...

  • Page 132
    ... to the Financial Statements of the Consolidated Porsche Group and Dr. Ing. h.c. F. Porsche AG as of July 31, 2004 (33) Total Remuneration for the Supervisory Board Proposal for the appropriation of net profits and the Executive Board Remuneration for the Executive Board in fiscal year 2003/04...

  • Page 133
    ..., financial position and results of operations in the individual and consolidated financial statements in accordance with German principles of proper accounting and in the consolidated Group and Porsche AG management report are detected with reasonable assurance. Knowledge of the business activities...

  • Page 134
    ...2) Porsche Cars North America, Inc. Porsche Cars Great Britain Ltd. Porsche Italia S.p.A. Porsche Ibérica S.A. Porsche Bank AG Porsche Holding GmbH (Chairman) Porsche Ges.m.b.H. (Chairman) PGA Group S.A.S. Eterna S.A. Dr. Dr. h.c. Walther Zügel 2) Porsche Bank AG Porsche Holding GmbH Porsche Cars...

  • Page 135
    ... North America, Inc. (Chairman) Porsche Financial Services, Inc. Porsche Cars Great Britain Ltd. Porsche Italia S.p.A. Porsche Ibérica S.A. Porsche Japan K.K. Porsche Enterprises, Inc. Porsche Deutschland GmbH Porsche Engineering Group GmbH Porsche Financial Services GmbH Porsche Business Services...

  • Page 136
    Imprint Publisher: Dr. Ing. h.c. F. Porsche AG, Stuttgart -Zuffenhausen © 2004 Photographs: Stefan Warter, Berlin dpa Picture-Alliance Porsche AG Translations: Colin Brazier, Munich Design: Atelier Lagally, Stuttgart Blocks: L & N-Litho, Waiblingen Printed by: Druckhaus Münster, Kornwestheim

  • Page 137
    ...100 % Porsche Engineering Services GmbH, Bietigheim - Bissingen 100 % Porsche Financial Services Italia S.p.A., Padua, Italy 100 % Porsche International Financing plc, Dublin, Ireland 100 % Porsche Design of America Inc., Wilmington / Delaware, USA 100 % Porsche Niederlassung Stuttgart GmbH...

  • Page 138
    ..., USA 100 % Porsche Financial Services Inc., Wilmington / Delaware, USA 100 % Euro Select Quality Parts Inc., Wilmington / Delaware, USA 100 % Porsche Liquidity LLC. Wilmington / Delaware, USA 100 % Porsche Business Services Inc., Wilmington / Delaware, USA 100 % Porsche Aviation Products...

  • Page 139
    ... Porscheplatz 1 D -70435 Stuttgart Porsche Group worldwide Telephone: +49(0)711 911- 0 Fax: +49(0)711 911- 57 77 http://www.porsche.com Financial Press and Investor Relations Telephone: +49 (0)711 911- 5869 Fax: +49 (0)711 911- 6375 This annual report is available in German and English. In case...

  • Page 140
    Dr. Ing. h.c. F. Porsche Aktiengesellschaft D -70432 Stuttgart Telephone: +49 (0)711 911- 0