Porsche 2005 Annual Report Download - page 33

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of 750 Euro. In the final days of the review year, the rate for
Porsche’s stock rose further to 767 Euro and then, at the
beginning of the new 2006/07 fiscal year, it reached more
than 800 Euro.
The stock also benefited from Porsche’s close contacts with
participants on the financial markets. The company’s develop-
ment was, for example, explained in detail to institutional in-
vestors and analysts at roadshows held at the most important
financial centers at home and abroad as well as during intensive
discussions at Porsche’s headquarters in Zuffenhausen. These
activities resulted repeatedly in a commitment to Porsche stock.
Investors and analysts were above all impressed by the sales
successes achieved in particular by the new sports cars. They
were no less enthusiastic about the prospects arising from
reinforced cooperation with Volkswagen. Consequently, the
overwhelming majority of financial market experts continued
to recommend the purchase of Porsche stock. Some invest-
ment banks increased their stock price forecasts for Porsche
shares to 900 through 1,000 Euro; one institution went as far
as to indicate a target of 911. Other analysts went even further,
with the highest target set in this accounting year running
1,100 Euro.
Outstanding Long-term Increase in Value
In the long term, an excellent performance can be expected
from Porsche stock. Looking at the quoted price for the past
ten fiscal years, i.e. the quoted price on the last day of each
annual period from July 31, 1996 to July 31, 2006, the price
has risen from 43.46 Euro to 767.00 Euro, an increase of
1,665 percent compared with the Dax’s increase of only 228
percent.
The increase in value of a shareholding with Porsche stock
over the same ten-year period was equally positive. If a sum
of 10,000 Euro had been invested in the sports car manu-
facturer’s shares on July 31, 1996, it would have increased to
176,484 Euro (including dividends) by July 31, 2006.
Increased Profit per Share
Porsche AG’s earnings situation improved yet again, as is
reflected in the increased profit per share. At 78.22 Euro, the
profit per share exceeds the prior-year value by 44.74 Euro.
Dividends are also set to swell: the shareholders’ general meet-
ing will be recommended to distribute a dividend of 8.94 Euro
for each common-stock share – 5.94 Euro plus a 3.00 Euro
special dividend – and 9.00 Euro for each preferred-stock share –
6.00 Euro plus a 3.00 Euro special dividend – for the fiscal year
2005/06. The previous year saw dividends of 4.94 Euro per
common-stock share and 5.00 Euro preferred-stock share. The
sum to be distributed as dividends to common- and preferred-
stock shareholders rose by 80.5 percent to 157 million Euro in
the previous fiscal year. The distribution quota stands at 10.6
percent (previous year: 11.2 percent).
Intensive Investor Relations
The high interest in Porsche has again grown significantly since
the company’s participation in Volkswagen AG. Porsche re-
sponded to the need for information and paid even greater at-
tention to investors and financial analysts in the 2005/06 fiscal
year. This communication often took the form of direct contact
with the financial market participants, in numerous individual
meetings, at roadshows, vehicle demos, trade fairs and events
for private investors. Equal emphasis was placed on compre-
hensive reporting in the media. In all its contacts, the company
attached great importance to “speaking with one voice”, in
other words to coordinated communication with both the ge-
neral public and the financial world.
Current figures and the company’s strategy were explained
to analysts and investors at several special conferences,
including driving presentations of new models – for example,
the presentation of the Cayenne Turbo S in Dubai and the new
911 Turbo in Spain. There was also the analysts’ conference
in December 2005, at which the annual accounts were pre-
sented. In addition, personal meetings were held throughout
the review year with institutional investors at the company’s
headquarters in Zuffenhausen. On-site company presentations
played a special role in contacts with institutional investors.