Porsche 2013 Annual Report Download - page 25

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is investing a total of more than 150 million euro for this
purpose.
Investment in Manthey
Porsche has expanded its long-standing successful
collaboration with the Manthey-Racing team and acquired
51 percent of the shares in Manthey-Racing GmbH in De -
cember 2013. The company, which is domiciled in Meus-
path near the Nürburgring, specializes in the development
and deployment of Porsche racing cars as well as services
for road vehicles from Zuffenhausen. Since 2013, Manthey-
Racing has supported Porsche factory entry at the WEC
sports car world championships.
Bond issued
In the reporting year, Porsche Financial Services Inc.,
domiciled in Atlanta, Georgia (USA), issued an ABS bond for
around 690 million US dollars. Porsche Financial Services
is an indirect wholly owned subsidiary of Porsche AG. Like
the transactions in 2011 and 2012, the privately placed
ABS bond was given the top rating by the rating agencies.
Investors included insurance companies, pension funds,
banks, asset management firms, and companies.
Growth in nancial services business
The international financial services provider Porsche Financial
Services group offers financial services for Porsche vehicles
via the Porsche retail organization. In addition to the core
leasing and financing products, the portfolio includes
dealer financing, insurance and credit cards. In 2011, the
portfolio was expanded to include financial services for
the exclusive Bentley, Lamborghini and Bugatti brands
and successfully launched on the German, Italian, and
Swiss markets. In the fiscal year 2012, the offering was
extended to the US, Canadian, and French markets. In the
reporting year 2013, the latest financial services company
was founded in the Middle East. Porsche financial services
companies are therefore represented in 15 countries. With
191 employees worldwide, Porsche Financial Services con-
cluded some 44,000 new contracts in 2013 and manages
a total of around 95,000 financial services contracts with
a total value of more than 4 billion euro. In addition to this,
more than 13,000 customers took advantage of Porsche’s
credit card service. The financial services companies
have continued to optimize their processes and methods
for risk management in line with the applicable statutory
requirements.
Outlook
General economic development
The world economy looks set to shift up a gear in 2014.
The International Monetary Fund (IMF) expects a consid-
erably improved outlook for the majority of industrialized
nations. For example, the euro zone is expected to grow
by 1.0 percent following two years of recession. The IMF
calculates a 1.6-percent increase in GDP for Germany.
However, low inflation in the in euro zone carries the risk
of deflation. There is next to no scope for the European
Central Bank to reduce interest rates further. According
to the forecasts, the USA, where economic performance
is expected to grow by 2.8 percent, remains a powerful
driver of the global upswing. China will probably grow again
about 7,5 percent.
Prospects on the automotive markets
Overall, the global automobile market will continue to grow
slightly in 2014. Apart from Japan and India all important
markets should have a positive development. Even in
western Europe, more new vehicles are expected to be
registered for the first time in four years. This also applies
for the German market, where the German Association of
the Automobile Industry (VDA) forecasts slight growth from
2.95 to 3.0 million new vehicles.
Anticipated developments
In the fiscal year 2014 and in the following fiscal year
2015, Porsche AG aims to further increase deliveries and
revenue, particularly on the back of the market launch of
the fifth model series Macan from April 2014. Although
investments in vehicle projects are high, continuous
productivity and process improvements and strict cost
management are intended to ensure that Porsche AG’s high
earnings objective continues to be achieved. This objective
is defined as a return on sales of at least 15 percent and a
return on capital of at least 21 percent.
BUSINESS DEVELOPMENT // 023