Porsche 2010 Annual Report Download - page 117

Anticipated development of
significant investments
The Porsche Zwischenholding GmbH group
expects that sales and revenue will continue to grow
in fiscal 2011 in comparison to 2010. However, it is
unlikely that the extraordinarily high growth rates seen
in the short fiscal year 2010 will be repeated. On the
one hand, this is because this growth was partly due
to the effects of the financial and economic crisis on
the sales situation, which burdened the first months of
the fiscal year 2009/ 10. On the other, the anticipated
slight slowdown in the growth of the global economy
can also be expected to curb growth. Nevertheless,
the Porsche Zwischenholding GmbH group expects
higher sales and revenue in fiscal 2011 than in 2010.
This growth is likely to be fueled by continued high
demand for Porsche vehicles in China and other
emerging markets. Moreover, the Porsche Zwischen-
holding GmbH group expects its attractive product
range to fuel further growth in demand in the main
markets of Europe and North America.
In the next two fiscal years, this development
and the strong competitiveness of the Porsche Zwi-
schenholding GmbH group and the Porsche brand
should have a positive impact on revenue and on
income from ordinary activities, as well as on cash
flow from operating activities. For example, the
group plans to increase sales and revenue for the
coming two years and to repeat the double-digit
return on sales before tax.
The Volkswagen group’s key competitive ad-
vantages are its unique brand portfolio and its conti-
nually growing presence in all key regions of the
world. Thanks to the group’s expertise in technology
and design, it has a diverse, attractive and environ-
mentally friendly range of products that meets all
customer desires and needs. In addition, the modular
toolkit system, which Volkswagen is continually opti-
mizing, will have an increasingly positive effect on
the group’s cost structure. In 2011, the Volkswagen
group’s nine brands will once again introduce a large
number of fascinating new models to the market,
thus further expanding the group’s strong position in
the global markets. Volkswagen therefore expects its
deliveries to customers to increase as against the
previous year.
The Volkswagen group expects its sales re-
venue and operating profit in 2011 to be higher than
the previous year. However, the continuing volatility in
interest and exchange rate trends and commodities
prices will weaken the positive volume effect. Discipli-
ned cost and investment management and the conti-
nuous optimization of processes remain core compo-
nents of the Volkswagen group’s “Strategy 2018”.
Anticipated development of the
Porsche SE group
The Porsche SE group’s profit/ loss hinges
on the results of operations and the profit/ loss of the
significant investments in Porsche Zwischenholding
GmbH and Volkswagen AG, which are accounted for
at equity, that is attributable to Porsche SE. Porsche
SE records investment income in the form of divi-
dends in its separate financial statements prepared
in accordance with the German Commercial Code.
In view of the recovery of the automotive
markets and the growth enjoyed by China and other
emerging markets, Porsche SE expects the pro-
fit/ loss attributable to it from investments accoun-
ted for at equity to develop positively in 2011 and,
should the merger not take place, also in 2012. The
profit/ loss attributable to it from investments ac-
counted for at equity will, however, continue to
include the effects resulting from amortization of
the purchase price allocations begun at the time of
inclusion of Porsche Zwischenholding GmbH as a
joint venture and Volkswagen AG as an associate. In
addition, the interest expenses associated with the
existing syndicated loan will have a negative impact
on the group’s profit/ loss until this loan has been
partially repaid as planned as of 30 June 2011.
Once it has been partially repaid as planned, inte-
rest expenses are expected to fall significantly.
Therefore, Porsche SE expects to generate a profit
for the period before special effects at group level
in the fiscal year 2011.
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