Porsche 2005 Annual Report Download - page 17

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For years now, the PVP has involved searching for potential
for optimization in all areas, which is then realized in the course
of PVP projects and workshops. In the past year alone, the
business areas successfully carried out around 200 projects
and workshops with the support of the PVP organization. To
complement this, the concept of PPO was introduced in 2004.
Its aim is to tap potential for further growth in the future using
the resources currently available. In the reporting period the
processes for planning and controlling vehicle projects were
optimized for all divisions and series – also with respect to the
fourth series.
Porsche Clocks Up Record Result
Once again Porsche succeeded in increasing the Group’s ex-
tremely high pre-tax result of 1.238 billion Euro in the previous
fiscal year even further. One pleasing development here was
that the result from the vehicle division increased at a stronger
rate than the corresponding sales revenue, mostly thanks to a
better model mix in terms of profit margin. The unusually high
rise in the result in the reporting year to a total of 2.110 billion
Euro is due, however, to special factors and non-recurring
effects.
These extraordinary effects include the sale of CTS Fahrzeug-
Dachsysteme GmbH, which resulted in a book gain of 80.7 million
Euro, and the Porsche income from the equity investment in
Volkswagen AG.
As the equity investment in Volkswagen is consolidated at
equity, pro rata net income of Volkswagen AG must be allocated
to the Porsche Group. Porsche’s share of 21.2 percent of the
ordinary shares corresponds to 15.4 percent of the ordinary
and preference shares issued by Volkswagen AG. The amount
disclosed by the Porsche Group as income totaled 203.4 million
Euro. The dividend for the equity investment of 21.2 percent
of the ordinary shares held in Volkswagen AG at the end of the
fiscal year amounted to 68.3 million Euro. This dividend was
recorded as income from equity investments at Porsche AG.
Income from hedging transactions in connection with the
purchase of a further 3.9 percent in Volkswagen AG amounted
to a figure well in excess of 100 million Euro.
Porsche achieved an excellent earnings level in the reporting
year in comparison with its competitors thanks to improved
productivity, a stringent approach to costs and prudent hedging
with respect to major currencies such as the US dollar. The
Group’s net income for the year (earnings after taxes) rose to
1.393 billion Euro after 779 million Euro in the previous year.
Our equity investments in Germany and abroad contributed to
the positive earnings development.
The pre-tax result calculated in accordance with German Com-
mercial Code (HGB) rose to 1.668 billion Euro at Porsche AG;
in the previous year this figure stood at 872 million Euro.
Net income for the year increased from 528 million Euro to
1.254 billion Euro. In addition to the operating business, the
dividends from the equity investments of 506.8 million Euro,
the book gain from the sale of CTS Fahrzeug-Dachsysteme
GmbH and hedging results all played a role here.
Further information on the result of operations is provided in
the consolidated financial statements including the notes as
well as the section on finances.
Germany
North America
Other export markets
Revenue in million Euro *Calculated according to IFRS
Germany
Finland
Porsche Vehicle Production in units
02 ⁄ 03 03 ⁄ 04* 04 ⁄ 05* 05 ⁄ 06 *
7500
6750
6000
5250
4500
3750
3 000
2250
1500
750
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
01⁄02 02 ⁄ 03 03 ⁄ 04 04 ⁄ 05 05 ⁄ 0601⁄02