Porsche 2005 Annual Report Download - page 19

17
Decision in Favor of Panamera Production in Leipzig
Porsche plans the large-scale expansion of the Leipzig plant
for the four-door sport coupe Panamera due to appear on the
market in 2009. A new production hall with an area of around
25,000 square meters and a logistics center with an area of
23,500 square meters will be built there. Capital expenditures
on the new buildings and manufacturing facilities will total
150 million Euro.
The engines of the Panamera will come from the headquarters
in Zuffenhausen. The painted bodyshells will be supplied by
the Volkswagen factory in Hanover. Porsche decided in favour
of the Hanover plant because it is one of the newest and most
modern in the Volkswagen group. It has one of the largest press
shops in Europe and a highly flexible paint shop that offers a
larger range of colors than the other Volkswagen plants.
The assembly of the Panamera will create roughly 600 new
jobs at Porsche Leipzig, with recruiting commencing in 2008.
There will also be a knock-on effect of 600 new jobs at suppliers
in the Leipzig region. At Porsche’s locations in Zuffenhausen
and Weissach, the Panamera will result somewhere in the
region of 400 new jobs by 2009. 500 employees will produce
the painted bodyshells in the Volkswagen plant in Hanover.
After the 911, the Boxster series including the Cayman, and
the Cayenne, Porsche intends to use its fourth series to broaden
its customer basis further and step up market penetration in
order to safeguard long-term growth.
Thanks to Employees, Business Associates and Shareholders
Once again, the reporting year called for exceptional commit-
ment on the part of Porsche’s employees in all divisions, in
Germany and abroad. The renewed expansion of the production
of sports cars, the preparation of new models, and the global
presentation of the Cayenne Turbo S, 911 Turbo, Cayman
and Cayman S to journalists, dealers and customers were just
some of the special challenges faced by our staff. Others in-
cluded further sales and marketing and development activities.
The Executive Board would like to thank all those involved for
their dedication. As a token of our appreciation, as in previous
years, we will share the good operating result with all of those
staff members who are covered by collective bargaining agree-
ments and have been with the company for at least a year.
We would also like to thank our shareholders, who have once
again displayed their trust in the company’s promising prospects,
the employees’ elected representatives, who worked together
with the management on far-reaching strategic decisions, as
well as our suppliers and business associates in the sales
organizations. Without their support it would not have been
possible for Porsche to achieve its ambitious goals, let alone
to far outperform these goals.
Risk Management System
According to § 91 Paragraph 2 German Stock Corporation
Act (AktG), Porsche is required to operate a risk management
and early warning system. Trade law also calls for reports to
be issued on future developments and the opportunities and
risks associated with them. Annual planning meetings are
therefore held to examine and evaluate the opportunities and
risks associated with all business activities. Objectives are
then drawn up and the degree to which they are fulfilled is
monitored during the year by the Group-wide controlling and
reporting system. If any changes to or deviations from the
Equity in million Euro
Capital Expenditures
Extended Cash Flow
** Extended Cash Flow including
changes to other provisions
02 ⁄ 03 03 ⁄ 04* 04 ⁄ 05* 05 ⁄ 06 *
4000
3600
3200
2800
2400
2000
1600
1200
800
400
6000
5400
4800
4200
3600
3000
2400
1800
1200
600
01⁄02 02 ⁄ 03 03 ⁄ 04 04 ⁄ 05 05 ⁄ 0601⁄02
Capital Expenditures and
Extended Cash Flow in million Euro**
*Calculated according to IFRS