Porsche 2011 Annual Report Download - page 130

With Strategy 2018, Porsche is pursuing the
long-term goal of positioning itself as the most suc-
cessful manufacturer of exclusive sports cars. In this
context, value-generating growth is at the heart of
the company's goals. The management of Porsche
Zwischenholding GmbH has derived four further goals
from this: Porsche aims to further increase customer
enthusiasm by means of a unique purchasing and
ownership experience. In the long term, it is intended
to increase sales to more than 200,000 vehicles per
year with Porsche's typical price premium. Return on
sales should be at least 15 percent and the return on
capital at least 21 percent in the long term. Porsche
wants to be recognized as an excellent employer and
business partner.
The Volkswagen group is well positioned
thanks to its multibrand strategy, attractive range of
models, growing presence in all major regions of the
world and wide range of financial services. The
Volkswagen group therefore expects its sales to
customers to exceed the previous years’ levels over-
all in 2012 and 2013. The Chinese joint venture
companies, as well as the new production facilities in
Russia, the USA and India, will make a significant
contribution to this development.
The Volkswagen group is anticipating in-
creasingly intense competition in a challenging mar-
ket environment, particularly in certain European
countries. Interest and exchange rate volatility, as
well as rising commodities, prices will represent
challenges.
The Volkswagen group expects sales reve-
nue in the automotive and financial services divisions
to increase in 2012 and 2013 as against 2011. The
goal for operating profit is to match the 2011 level
in 2012, and to exceed it in 2013. The Volkswagen
group believes that this will be the case for the
passenger cars and light commercial vehicles busi-
ness area and is also being forecast by the trucks
and buses, power engineering business area – which
remains affected by high depreciation and amortiza-
tion expenses from purchase price allocation,
among other things – as well as the financial ser-
vices division.
In the medium term, Volkswagen aims to
achieve a sustainable return on sales before tax at
group level of at least 8 percent. The average ratio
of capital expenditure to sales revenue in the auto-
motive division will fluctuate around the competitive
level of 6 percent. The goal of the Volkswagen group
is also to maintain its positive rating compared with
the industry as a whole and to continue its solid
liquidity policy.
In order to master the challenges of the au-
tomotive future and to achieve the Strategy 2018
targets, the decisive advantages for the Volkswagen
group lie in its unique brand portfolio, the young,
innovative and environmentally friendly model range,
the broad international presence with local value
added in many key regions, the significant synergy
potential in the group-wide development of technolo-
gies and models, and finally in its financial strength.
With the construction of new plants, the development
of technologies and platforms, and agreements on
strategic partnerships, Volkswagen is working on
more selectively utilizing the strengths of its multi-
brand group. Disciplined cost and investment man-
agement remains an integral part of the Volkswagen
group's Strategy 2018.
Anticipated development of the
Porsche SE group
The Porsche SE group’s profit/loss continues
to be largely dependent 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 in-
come in the form of dividends in its separate financial
statements prepared in accordance with the German
Commercial Code (HGB).
In view of the positive expectations of its sig-
nificant investments regarding future developments,
Porsche SE expects the profit/loss attributable to it
from investments accounted for at equity to develop
positively in the fiscal years 2012 and 2013. The
profit/loss attributable to it from investments ac-
counted for at equity will, however, continue to in-
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