Quarterly Report • Oct 25, 2024
Quarterly Report
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JANUARY - SEPTEMBER 2024
3 KEY FIGURES
4 BUSINESS DEVELOPMENT
8 RESULTS OF OPERATIONS AND FINANCIAL POSITION
13 REPORT ON EXPECTED DEVELOPMENTS, RISKS AND OPPORTUNITIES
14 SELECTED FINANCIAL INFORMATION
17 FURTHER INFORMATION
| Most important key performance indicators | |||
|---|---|---|---|
| Porsche AG Group | |||
| Sales revenue | € million | 28,564 | 30,132 |
| Return on sales | $\%$ | 14.1 | 18.3 |
| Automotive segment | |||
| Automotive EBITDA margin | $\%$ | 23.0 | 25.5 |
| Automotive net cash flow margin | $\%$ | 4.8 | 12.2 |
| Automotive BEV share | $\%$ | 7.3 | 11.6 |
| Other financial performance indicators | |||
| Porsche AG Group | |||
| Operating profit | € million | 4,035 | 5,501 |
| Profit before tax | € million | 3,986 | 5,645 |
| Profit after tax | € million | 2,764 | 3,940 |
| Earnings per ordinary share/preferred share | € | 3.03/3.04 | 4.32/4.33 |
| Automotive segment | |||
| Automotive operating profit | € million | 3,771 | 5,232 |
| Automotive return on sales | $\%$ | 14.6 | 18.8 |
| Automotive EBITDA ${ }^{1}$ | € million | 5,950 | 7,074 |
| Automotive net cash flow | € million | 1,235 | 3,386 |
| Automotive cash flows from operating activities | € million | 4,714 | 6,435 |
| Automotive net liquidity ${ }^{2}$ | € million | 6,188 | 6,627 |
| Automotive research and development costs ${ }^{3}$ | € million | 2,312 | 2,038 |
| Automotive capital expenditure ${ }^{4}$ | € million | 1,512 | 1,253 |
| Financial services segment | |||
| Financial services operating profit | € million | 210 | 230 |
| Financial services return on sales | $\%$ | 7.4 | 9.1 |
| Other non-financial performance indicators | |||
| Deliveries ${ }^{5}$ | Vehicles | 226,026 | 242,722 |
| ${ }^{1}$ Automotive operating profit before depreciation/amortization and changes in value of property, plant and equipment, capitalized development costs and other intangible assets in the automotive segment. ${ }^{2}$ Total of cash and cash equivalents, securities and time deposits as well as loans net of third-party borrowings in the automotive segment. ${ }^{3}$ Research costs, non-capitalizable development costs and investments in development costs that have to be capitalized in the automotive segment. ${ }^{4}$ Additions (cost) to intangible assets (excluding capitalized development costs) and property, plant and equipment (excluding right-of-use assets) in the automotive segment. ${ }^{5}$ Number of vehicles handed over to end customers. |
The Porsche AG Group stayed on track in the first nine months of 2024. At the end of the third quarter 2024, the extensive renewal of the product portfolio and the challenging economic environment continued to impact key figures.
From January to September 2024, the Porsche AG Group recorded a decline in both sales revenue and operating profit compared to the prior-year period. Sales revenue decreased from $€ 30,132$ million to $€ 28,564$ million. Operating profit fell from $€ 5,501$ million to $€ 4,035$ million. In the first nine months of 2024, the operating return on sales of the Porsche AG Group was $14.1 \%$ (prior year: $18.3 \%$ ) and the automotive EBITDA margin was $23.0 \%$ (prior year: $25.5 \%$ ).
The automotive net cash flow came to $€ 1,235$ million (prior year: $€ 3,386$ million). The automotive net cash flow margin stood at $4.8 \%$ (prior year: $12.2 \%$ ).
Deliveries remained stable, falling moderately by $6.9 \%$ to 226,026 vehicles. The automotive BEV share stood at $7.3 \%$ (prior year: $11.6 \%$ ).
The fiscal year of the largest model launch program in the company's history began with the third model generation of the Panamera, followed by the next generation of the all-electric Taycan sports car. This model launch program was continued with the presentation of the hybrid 911 and the world premiere of the all-electric Macan. In the first three quarters of the year 2024, these start-ups had an impact on unit sales, inventories, depreciation and amortization as well as research and development costs.
The start of electromobility was celebrated at the Leipzig production site. The investment in the expansion of the plant will enable gasoline, hybrid and all-electric vehicles to be produced on one production line in the future.
At Porsche AG's Annual General Meeting on June 7, 2024, a resolution was passed on the appropriation of net retained profit for the fiscal year 2023, resulting in a distribution of $€ 2.30$ per ordinary share and $€ 2.31$ per preferred share. The total distribution therefore amounted to $€ 2,100$ million and was paid out on June 12, 2024.
All ten shareholder representatives on the Supervisory Board were unanimously re-elected for a further term of office. At the constituent meeting of the Supervisory Board following the Annual General Meeting, Dr. Wolfgang Porsche was unanimously confirmed as Chairman of the Supervisory Board and Jordana Vogiatzi as Deputy Chairwoman of the Supervisory Board.
In order to secure future supplies, Porsche AG and VARTA AG signed a partnership agreement on October 9, 2024 relating to V4Drive Battery GmbH, a wholly owned subsidiary of VARTA AG. The agreement provides for an investment by Porsche AG in the development and production of large-format lithium-ion round cells and will give Porsche AG a majority shareholding in V4Drive Battery GmbH upon completion of the transaction. Completion of the majority takeover is contingent on various factors, including antitrust approvals in various countries and the successful restructuring of VARTA AG in accordance with the German Act on the Stabilization and Restructuring Framework for Businesses (StaRUG). Against this background, Porsche AG is also participating with other investors in the planned financial restructuring of VARTA AG as part of the StaRUG proceedings. An investor agreement to this effect was concluded on October 3, 2024.
In the first nine months of the reporting year 2024, the global economy continued to recover but at a somewhat slower pace than the prior year. This trend was observed in both the advanced economies and the emerging markets. Although inflation rates are falling in many countries, they are still relatively high which, coupled with the ongoing restrictive monetary policy of major central banks, continues to dampen economic growth in many countries. At the end of the reporting period, a number of central banks began to reduce their key interest rates.
From January to September 2024, the volume of the global passenger car market was on a par with the comparative figure for 2023, with the passenger car markets remaining stable in most regions. The supply situation normalized further and the affordability of vehicles improved in some cases as a result of lower prices and increased sales incentives.
In the first nine months of the year 2024, the number of new registrations of passenger cars on the German passenger car market was on a par with the prior-year period, with the change in incentives for electric vehicles in the prior year having a dampening effect on the development of new registrations. By contrast, the demand for vehicles with conventional and hybrid drivetrains increased.
In Western Europe, the number of new registrations of passenger cars was stable in the first nine months of the reporting year 2024 compared to the prior year. The development of the major markets for passenger cars in this region was mixed. While market volumes increased in the United Kingdom, Italy and Spain, in France they were on a par with the prior year.
In Central and Eastern Europe, the passenger car market volume increased significantly in the reporting period. The number of sales developed positively in the major markets of Central Europe.
In the first nine months of the fiscal year 2024, the number of registrations of passenger cars in the region North America excl. Mexico remained unchanged compared to the prior-year period. This development was driven by the market volume in the USA, where vehicle availability and the affordability of new vehicles improved on average.
The passenger car market in China incl. Hong Kong remained at the prior-year level in the first nine months of 2024 due to falling prices. A negative trend in demand was observed in the luxury segment.
Demand for automotive financial services was high from January to September 2024, although high interest rates put pressure on the demand for financial services in almost all regions.
At the end of the third quarter of 2024, deliveries ${ }^{1}$ of the Porsche AG Group had fallen by $6.9 \%$ compared to the prioryear period. Overall, the sports car manufacturer delivered 226,026 vehicles.
In the domestic market of Germany, the Porsche AG Group increased its deliveries by $8.2 \%$ to 26,838 vehicles. In Europe without Germany, deliveries grew by $1.4 \%$ to 52,465 vehicles. In the region North America excl. Mexico, the number of deliveries decreased by $4.7 \%$ to 61,471 vehicles. This decrease is related to the limited product availability due to this year's model change. In the region China incl. Hong Kong, the Porsche AG Group delivered 43,280 vehicles, a decrease of $28.8 \%$ compared to the prior-year period. The main reasons for this remain the ongoing tense economic situation in the Chinese market and the focus on value-based sales. In the sales region rest of the world, 41,972 vehicles were handed over to customers. This is a $2.5 \%$ year-on-year increase.
| Units | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Germany | 26,838 | 24,814 |
| Europe without Germany | 52,465 | 51,742 |
| North America ${ }^{2}$ | 61,471 | 64,487 |
| China ${ }^{3}$ | 43,280 | 60,748 |
| Rest of the world | 41,972 | 40,931 |
| Deliveries | $\mathbf{2 2 6 , 0 2 6}$ | $\mathbf{2 4 2 , 7 2 2}$ |
| 2 Excl. Mexico. | ||
| ${ }^{3}$ Incl. Hong Kong. |
At 77,686 units, the Porsche Cayenne recorded the highest number of deliveries in the first nine months of the year 2024 (up 20.5\%). The Porsche Macan was delivered to 55,000 customers (down 19.5\%). This decrease is related to the current model change in many markets. Deliveries of the 718 Boxster and 718 Cayman models came to 18,048 (up 9.7\%.). With growth of $2.5 \%$ compared to the prior-year period, deliveries of the Porsche 911 totaled 39,744. The Panamera was delivered to 21,506 customers (down 19.7\%). This decline can be explained by the market situation in China and the current model change. The latter also applies to the Taycan, with 14,042 deliveries to customers (down 49.6\%).
In the reporting period, the automotive BEV share, which describes the proportion of purely battery-powered electric vehicles, stood at $7.3 \%$ (prior year: 11.6\%). The year-on-year decline remains due to the phase-out and start-up situation for the Taycan. In addition, the market launch of the all-electric Macan has had a proportionate impact on the share of BEV vehicles since September 2024.
Deliveries of the Porsche AG Group
| Units | G1-G3 2024 | G1-G3 2023 | |
|---|---|---|---|
| 911 | 39,744 | 38,789 | |
| 718 Boxster/Cayman | 18,048 | 16,458 | |
| Macan | 55,000 | 68,354 | |
| Cayenne | 77,686 | 64,457 | |
| Panamera | 21,506 | 26,779 | |
| Taycan | 14,042 | 27,885 | |
| Deliveries | $\mathbf{2 2 6 , 0 2 6}$ | $\mathbf{2 4 2 , 7 2 2}$ |
[^0]
[^0]: 1 The performance indicator "deliveries" reflects the number of vehicles handed over to end customers. This may take place via group companies or independent importers and dealers. In the Porsche AG Group, this differs from unit sales as a relevant driver of sales revenue. Unit sales in the Porsche AG Group are designated as those sales of new and group used vehicles of the Porsche brand, which have left the automotive segment for the first time, provided there is no legal repurchase obligation by a company in the automotive segment.
In the first nine months of 2024, the Porsche AG Group spent €2,312 million on research and development (R\&D) (prior year: €2,038 million). The R\&D ratio increased to 8.9\% (prior year: 7.3\%). In the first nine months of 2024, the Porsche AG Group recorded an increase in both total research and development costs and R\&D costs recognized in the income statement compared to the prior-year period. This was due to the renewal of the model range and the transition period. Capitalized development costs stood at €1,554 million (prior year: €1,656 million), while the capitalization ratio fell to 67.2\% (prior year: 81.2\%). The decrease is due to a change in the project mix and different stages of capitalization for current vehicle projects. Research and development costs recognized in the income statement stood at €1,584 million (prior year: €1,073 million). Amortization of capitalized development costs contained therein increased to €825 million (prior year: €691 million) due to the amortization in connection with the renewal of the model range. The total spend on research and development related to the automotive segment.
Automotive research and development costs
| € million | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Automotive sales revenue | 25,899 | 27,785 |
| Total research and development costs | 2,312 | 2,038 |
| of which: capitalized development costs | 1,554 | 1,656 |
| Capitalization ratio ${ }^{1}(\%)$ | 67.2 | 81.2 |
| R\&D ratio ${ }^{2}(\%)$ | 8.9 | 7.3 |
| Research and development costs recognized in the income statement | 1,584 | 1,073 |
| of which: amortization of capitalized development costs | 825 | 691 |
| Research and development costs recognized in the income statement ${ }^{3}$ (\%) | 6.1 | 3.9 |
1 Capitalized development costs in relation to total research and development costs.
${ }^{2}$ Total research and development costs in relation to automotive sales revenue.
${ }^{3}$ Research and development costs recognized in the income statement in relation to automotive sales revenue.
The Porsche AG Group generated sales revenue of $€ 28,564$ million in the first nine months of 2024. This is a decrease of $5.2 \%$ on the prior-year period (prior year: $€ 30,132$ million) and is largely due to lower vehicle sales coupled with positive price and product mix effects.
In the first nine months of 2024, the Porsche AG Group sold 221,304 vehicles. This is a $11.5 \%$ decrease in unit sales compared to the prior-year period (prior year: 250,192 vehicles).
The Cayenne is the bestselling series with 72,743 vehicles sold, followed by the Macan with 55,693 vehicles sold. The largest relative increases were recorded for the 718 Boxster/Cayman (up 977 vehicles; up 5.8\%) and the Cayenne (up 3,282 vehicles; up 4.7\%). Declines were recorded for the Taycan (down 13,796 vehicles; down 47.2\%), Panamera (down 6,107 vehicles; down 22.2\%), Macan (down 11,660 vehicles; down 17.3\%) and 911 (down 1,584 vehicles; down 4.0\%) due to the current model changes.
In regional terms, North America excl. Mexico is the largest market with a total of 62,583 vehicles sold, an $8.5 \%$ decrease. The regions Germany with 22,883 vehicles (up 4.2\%) and Europe excluding Germany with 55,622 vehicles (up 0.6\%) recorded growth. The region China incl. Hong Kong, on the other hand, reported a decrease of $34.4 \%$ to 39,413 vehicles, which continues to reflect the challenging market conditions and the focus on value-based sales in this region. A decline of $8.2 \%$ to 40,803 vehicles was also recorded in the region rest of the world due to the current model change.
Vehicle sales of the Porsche AG Group
| Units | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| 911 | 38,232 | 39,816 |
| 718 Boxster/Cayman | 17,851 | 16,874 |
| Macan | 55,693 | 67,353 |
| Cayenne | 72,743 | 69,461 |
| Panamera | 21,377 | 27,484 |
| Taycan | 15,408 | 29,204 |
| Vehicle sales | $\mathbf{2 2 1 , 3 0 4}$ | $\mathbf{2 5 0 , 1 9 2}$ |
The cost of sales decreased by $€ 264$ million to $€ 21,279$ million (prior year: $€ 21,543$ million), an increase in proportion to sales revenue ( $74.5 \%$; prior year: $71.5 \%$ ). This is mainly due to higher cost of materials as well as higher development costs recognized in the income statement and start-up costs in connection with the renewal of the model range.
Gross profit decreased accordingly by $15.2 \%$ to $€ 7,285$ million (prior year: $€ 8,589$ million), therefore resulting in a gross margin of $25.5 \%$ (prior year: $28.5 \%$ ).
Distribution expenses increased by $€ 138$ million to $€ 2,148$ million, an increase in proportion to sales revenue to $7.5 \%$ (prior year: $6.7 \%$ ). The increase is due, among other things, to the digitalization strategy and higher costs for strengthening customer-oriented services. At $€ 1,368$ million, administrative expenses were on a par with the prior-year period (prior year: $€ 1,379$ million) and, in proportion to sales revenue, remained virtually unchanged at $4.8 \%$ (prior year: $4.6 \%$ ).
Net other operating result decreased by $€ 34$ million to $€ 267$ million (prior year: $€ 301$ million).
| € million | Q1-Q3 2024 | Q1-Q3 2023 | |
|---|---|---|---|
| Sales revenue | 28,564 | 30,132 | |
| Cost of sales | $-21,279$ | $-21,543$ | |
| Gross profit | 7,285 | 8,589 | |
| Distribution expenses | $-2,148$ | $-2,010$ | |
| Administrative expenses | $-1,368$ | $-1,379$ | |
| Net other operating result | 267 | 301 | |
| Operating profit | 4,035 | 5,501 | |
| Return on sales (\%) | 14.1 | 18.3 | |
| Financial result | $-49$ | 144 | |
| Profit before tax | 3,986 | 5,645 | |
| Income tax | $-1,221$ | $-1,705$ | |
| Profit after tax | 2,764 | 3,940 |
Accordingly, the operating profit of the Porsche AG Group decreased by $€ 1,466$ million to $€ 4,035$ million in the first nine months of 2024 (prior year: $€ 5,501$ million). The operating return on sales of the Porsche AG Group stood at 14.1\% (prior year: 18.3\%).
In the first nine months of 2024, the financial result decreased to €-49 million (prior year: $€ 144$ million). This decrease is mainly due to the result from equity-accounted investments and changes in interest rates used to measure provisions.
Due to the lower profit before tax compared to the prior-year period, income tax also fell to $€ 1,221$ million (prior year: $€ 1,705$ million). The tax rate for the Porsche AG Group was 30.6\% in the first nine months of 2024 (prior year: 30.2\%).
Profit after tax decreased by $€ 1,176$ million to $€ 2,764$ million in the current reporting period.
Earnings per ordinary share came to $€ 3.03$ (prior year: $€ 4.32$ ) and per preferred share to $€ 3.04$ (prior year: $€ 4.33$ ).
Automotive operating profit of $€ 3,771$ million in the first nine months of 2024 fell $€ 1,461$ million short of the figure of the prior-year period (prior year: $€ 5,232$ million). With automotive sales revenue of $€ 25,899$ million, automotive return on sales stood at 14.6\% (prior year: 18.8\%). Automotive EBITDA decreased by $€ 1,123$ million to $€ 5,950$ million (prior year: $€ 7,074$ million) and the automotive EBITDA margin stood at 23.0\% (prior year: 25.5\%).
Automotive EBITDA margin
| € million | Q1-Q3 2024 | Q1-Q3 2023 |
|---|---|---|
| Automotive operating profit | 3,771 | 5,232 |
| Depreciation and amortization | 2,179 | 1,842 |
| Automotive EBITDA | 5,950 | 7,074 |
| Automotive sales revenue | 25,899 | 27,785 |
| Automotive EBITDA margin (\%) | 23.0 | 25.5 |
Financial services sales revenue increased to $€ 2,853$ million (prior year: $€ 2,520$ million). Financial services operating profit decreased to $€ 210$ million in the first nine months of 2024 (prior year: $€ 230$ million). The decrease was mainly due to the measurement of interest rate hedges and of derivatives outside of hedge accounting in the course of regular refinancing activities. As a result, financial services return on sales decreased to 7.4\% (prior year: 9.1\%).
Demand for the products and services of the financial services segment, which is calculated as the ratio of leased or financed new vehicles to the total number of deliveries in the markets of the segment (penetration rate), stood at $38.4 \%$ as of September 30, 2024 (prior year: 40.0\%). While demand for financial services products remained stable in the regions North America excl. Mexico, China incl. Hong Kong and rest of the world compared to the prior-year period, demand developed negatively in the regions Germany and Europe without Germany.
The overall number of contracts for financing and leasing of the Porsche AG Group, including its cooperation partners, decreased by $0.4 \%$ to 344 thousand contracts as of September 30, 2024 (December 31, 2023: 345 thousand contracts).
In the first nine months of 2024, cash flows from operating activities of the Porsche AG Group amounted to $€ 4,156$ million, down on the prior-year period (prior year: $€ 5,368$ million). This decrease was due to the decline in profit before tax and to higher outflows from working capital. Cash outflows for income tax payments amounted to $€ 1,206$ million (prior year: cash outflows of $€ 1,637$ million) due to the corresponding reduction in prepayments.
Cash outflows in working capital of $€ 1,963$ million (prior year: cash outflows of $€ 1,244$ million) comprised the outflows in the automotive segment as well as outflows in the financial services segment relating to changes in leased assets of $€ 1,153$ million (prior year: cash outflows of $€ 987$ million) and receivables from financial services of $€ 170$ million (prior year: cash outflows of $€ 465$ million).
Cash outflows from investing activities came to $€ 3,243$ million (prior year: cash outflows of $€ 3,075$ million). In contrast to the increase in cash outflows from investing activities of current operations in the automotive segment, the change in investments in securities and time deposits and loans resulted in cash inflows of $€ 211$ million (prior year: cash inflows of $€ 11$ million).
Cash outflows from financing activities of $€ 2,103$ million (prior year: cash outflows of $€ 3,907$ million) largely related to the dividend payment of $€ 2,100$ million (prior year: profit transfer and dividend payment of $€ 4,895$ million). In addition, there were cash outflows in the change in other financing activities of $€ 3$ million (prior year: cash inflows of $€ 988$ million).
Automotive cash flows from operating activities decreased by $€ 1,721$ million to $€ 4,714$ million (prior year: $€ 6,435$ million).
In the first nine months of 2024, cash outflows in automotive working capital had an effect of $€ 592$ million (prior year: cash inflows of $€ 220$ million). The outflows were largely attributable to the change in inventories and came to $€ 94 B$ million (prior year: cash outflows of $€ 697$ million), partly as a result of the Macan launch and ongoing supply chain challenges. Cash outflows from the change in receivables decreased to $€ 302$ million (prior year: cash outflows of $€ 676$ million). The lower cash inflows from the change in liabilities of $€ 236$ million compared to the prior year (prior year: cash inflows of $€ 1,122$ million) related to the changes in trade payables. The change in other provisions of $€ 422$ million (prior year: cash inflows of $€ 471$ million) had a positive impact on the automotive working capital.
Compared to the prior-year period, cash outflows from the investing activities of current operations increased from $€ 3,049$ million to $€ 3,479$ million. While automotive capital expenditure increased to $€ 1,512$ million compared to the prioryear period (prior year: cash outflows of $€ 1,253$ million), additions to capitalized development costs decreased in the same period. Cash outflows from changes in equity investments increased to $€ 422$ million (prior year: cash outflows of $€ 147$ million) primarily due to investments in strategic partnerships in connection with the digitalization strategy.
As of the end of the third quarter of 2024, the automotive net cash flow decreased to $€ 1,235$ million (prior year: $€ 3,386$ million). The decrease in the automotive net cash flow margin to $4.8 \%$ (prior year: $12.2 \%$ ) was again mainly due to operating activities. The lower profit as well as the ongoing temporary effects in working capital led to a decrease in the automotive net cash flow margin.
| C million | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Cash flows from operating activities | 4,714 | 6,435 |
| Change in working capital | $-592$ | 220 |
| Change in inventories | $-948$ | $-697$ |
| Change in receivables (excluding financial services) | $-302$ | $-676$ |
| Change in liabilities (excluding financial liabilities) | 236 | 1,122 |
| Change in other provisions | 422 | 471 |
| Investing activities of current operations ${ }^{1}$ | $-3,479$ | $-3,049$ |
| Investments in intangible assets (excluding capitalized development costs) and property, plant and equipment | $-1,512$ | $-1,253$ |
| Additions to capitalized development costs | $-1,554$ | $-1,656$ |
| Changes in equity investments | $-422$ | $-147$ |
| Automotive net cash flow | 1,235 | 3,386 |
${ }^{1}$ Including cash received from disposal of intangible assets and property, plant and equipment
As of September 30, 2024, automotive net liquidity decreased by $€ 1,027$ million to $€ 6,188$ million compared to the end of the fiscal year 2023, mainly due to the dividend payment. This was offset by cash inflows from the automotive net cash flow.
As of the end of the third quarter 2024, cash and cash equivalents at the end of the period decreased by $€ 1,147$ million to $€ 4,991$ million (December 31, 2023: $€ 6,139$ million). In the same period, securities and time deposits as well as loans decreased by $€ 182$ million to $€ 3,541$ million. By contrast, automotive third-party borrowings decreased to $€ 2,345$ million (December 31, 2023: $€ 2,646$ million).
| C million | Sep. 30, 2024 | Dec. 31, 2023 |
|---|---|---|
| Cash and cash equivalents | 4,991 | 6,139 |
| Securities and time deposits as well as loans |
3,541 | 3,723 |
| Gross liquidity | $\mathbf{8 , 5 3 2}$ | $\mathbf{9 , 8 6 1}$ |
| Total third-party borrowings | $-2,345$ | $-2,646$ |
| Automotive net liquidity | $\mathbf{6 , 1 8 8}$ | $\mathbf{7 , 2 1 5}$ |
| C million | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Cash and cash equivalents at beginning of period | 5,826 | 3,745 |
| Profit before tax | 3,986 | 5,645 |
| Income taxes paid | $-1,206$ | $-1,637$ |
| Depreciation and amortization ${ }^{1}$ | 2,910 | 2,463 |
| Gain/loss on disposal of non-current assets | 18 | $-6$ |
| Share of profit or loss of equity-accounted investments | 104 | 19 |
| Change in pension provisions | 214 | 185 |
| Other non-cash expense/income | 93 | $-57$ |
| Change in working capital | $-1,963$ | $-1,244$ |
| Change in inventories | $-952$ | $-704$ |
| Change in receivables (excluding financial services) | $-417$ | $-714$ |
| Change in liabilities (excluding financial liabilities) | 307 | 1,168 |
| Change in other provisions | 422 | 459 |
| Change in leased assets | $-1,153$ | $-987$ |
| Change in financial services receivables | $-170$ | $-465$ |
| Cash flows from operating activities | 4,156 | 5,368 |
| Investing activities of current operations | $-3,454$ | $-3,086$ |
| Change in investments in securities and time deposits as well as loans | 211 | 11 |
| Cash flows from investing activities | $-3,243$ | $-3,075$ |
| Capital contributions | - | - |
| Profit transfer and dividends | $-2,101$ | $-4,895$ |
| Change in other financing activities | $-3$ | 988 |
| Cash flows from financing activities | $-2,103$ | $-3,907$ |
| Effect of exchange rate changes on cash and cash equivalents | $-84$ | $-24$ |
| Net change in cash and cash equivalents | $-1,273$ | $-1,638$ |
| Cash and cash equivalents at end of period | 4,553 | 2,106 |
| ${ }^{1}$ Offset against reversals of impairment losses. |
The assumptions used in preparing the forecast report are based, inter alia, on current estimates by external institutions; these include economic research institutes, banks, multinational organizations and consultancy firms.
The forecast, which extends until the end of the fiscal year 2024 in line with the group's internal control system, contains forward-looking statements based on the estimates and expectations of the Porsche AG Group. These can be influenced by unforeseeable events, as a result of which the actual business development may deviate, both positively and negatively, from the expectations described below.
The Porsche AG Group continues to face a highly challenging macroeconomic environment and various geopolitical tensions and conflicts. Uncertainties and financial burdens continue to arise in particular from the situation on the Chinese market, the numerous product launches and supply bottlenecks as well as the persistently high cost levels, particularly on the supplier side. As one of many challenges in the supply chain, the supply shortages caused by the flooding of a production facility of a major European aluminum supplier were largely offset.
Other challenges in the supply chain remain, however, and must be considered accordingly.
Taking into account the slower transition to e-mobility, the Porsche AG Group is simultaneously investing extensively in innovation, digitalization and sustainability for the development of future products and services as well as in the brand and customer satisfaction.
Despite this challenging overall situation, the Porsche AG Group has confirmed the $\rightarrow$ Outlook of the Porsche AG Group published in the half-year financial report 2024 subject to the conditions also described there - provided the overall situation does not deteriorate significantly. This applies in particular to macroeconomic risks, such as the introduction of additional import restrictions and tariffs.
The Porsche AG Group presented its risks and opportunities in the $\rightarrow$ Half-year financial report 2024 - Report on risks and opportunities. The overall conclusion that, based on the information and assessments currently available, the risk of a development jeopardizing the company's ability to continue as a going concern materializing is sufficiently improbable in the fiscal year 2024, remains unchanged.
Outlook of the Porsche AG Group
| 2023 reported |
2024 Outlook Annual report 2023 |
2024 Outlook Half-year financial report Jun. 30, 2024 |
2024 Outlook Quarterly statement Sep. 30, 2024 |
|
|---|---|---|---|---|
| Porsche AG Group | ||||
| Sales revenue | € billion | 40.5 | 40 to 42 | 39 to 40 |
| Return on sales | \% | 18.0 | 15 to 17 | 14 to 15 |
| Automotive segment | ||||
| Automotive net cash flow margin | \% | 10.6 | 8.5 to 10.5 | 7 to 8.5 |
| Automotive EBITDA margin | \% | 25.7 | 24 to 26 | 23 to 24 |
| Automotive BEV share | \% | 12.8 | 13 to 15 | 12 to 13 |
| C million | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Sales revenue | 28,564 | 30,132 |
| Cost of sales | $-21,279$ | $-21,543$ |
| Gross profit | 7,285 | 8,589 |
| Distribution expenses | $-2,148$ | $-2,010$ |
| Administrative expenses | $-1,368$ | $-1,379$ |
| Net other operating result | 267 | 301 |
| Operating profit | 4,035 | 5,501 |
| Share of profit or loss of equity-accounted investments | $-89$ | $-6$ |
| Interest result and other financial result | 39 | 149 |
| Financial result | $-49$ | 144 |
| Profit before tax | 3,986 | 5,645 |
| Income tax expense | $-1,221$ | $-1,705$ |
| Profit after tax | 2,764 | 3,940 |
| thereof profit attributable to shareholders | 2,765 | 3,941 |
| thereof profit attributable to non-controlling interests | $-1$ | 0 |
| Basic/diluted earnings per ordinary share in $€$ | 3.03 | 4.32 |
| Basic/diluted earnings per preferred share in $€$ | 3.04 | 4.33 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT AS OF SEPTEMBER 30, 2024 AND AS OF DECEMBER 31, 2023 (CONDENSED)
| C million | Sep. 30, 2024 | Dec. 31, 2023 |
|---|---|---|
| Assets | ||
| Non-current assets | 32,296 | 30,407 |
| Intangible assets | 9,178 | 8,554 |
| Property, plant and equipment | 9,793 | 9,394 |
| Leased assets | 4,650 | 4,190 |
| Financial services receivables | 4,755 | 4,676 |
| Equity-accounted investments, other equity investments, other financial assets, other receivables and deferred tax assets | 3,920 | 3,592 |
| Current assets | 19,793 | 20,040 |
| Inventories | 6,887 | 5,947 |
| Financial services receivables | 1,704 | 1,669 |
| Other financial assets and other receivables | 4,408 | 4,537 |
| Tax receivables | 337 | 235 |
| Securities and time deposits | 1,905 | 1,826 |
| Cash and cash equivalents | 4,547 | 5,820 |
| Assets held for sale | 6 | 6 |
| Total assets | 52,089 | 50,447 |
| Equity and liabilities | ||
| Equity | 22,354 | 21,668 |
| Equity attributable to Porsche AG shareholders | 22,344 | 21,667 |
| Non-controlling interests | 9 | 1 |
| Non-current liabilities | 15,673 | 15,211 |
| Provisions for pensions and similar obligations | 4,348 | 4,315 |
| Financial liabilities | 6,651 | 6,537 |
| Other liabilities | 4,674 | 4,360 |
| Current liabilities | 14,062 | 13,567 |
| Financial liabilities | 3,805 | 3,880 |
| Trade payables | 3,943 | 3,490 |
| Other liabilities | 6,309 | 6,192 |
| Liabilities associated with assets held for sale | 5 | 5 |
| Total equity and liabilities | 52,089 | 50,447 |
CONSOLIDATED STATEMENT OF CASH FLOWS OF DR. ING. H.C. F. PORSCHE AKTIENGESELLSCHAFT FROM JANUARY 1 TO SEPTEMBER 30, 2024 (CONDENSED)
| C million | G1-G3 2024 | G1-G3 2023 |
|---|---|---|
| Cash and cash equivalents at beginning of period | 5,826 | 3,745 |
| Profit before tax | 3,986 | 5,645 |
| Income taxes paid | $-1,206$ | $-1,637$ |
| Depreciation and amortization ${ }^{1}$ | 2,910 | 2,463 |
| Gain/loss on disposal of non-current assets | 18 | $-6$ |
| Share of profit or loss of equity-accounted investments | 104 | 19 |
| Other non-cash expense/income | 93 | $-57$ |
| Change in inventories | $-952$ | $-704$ |
| Change in receivables (excluding financial services) | $-417$ | $-714$ |
| Change in liabilities (excluding financial liabilities) | 307 | 1,168 |
| Change in pension provisions | 214 | 185 |
| Change in other provisions | 422 | 459 |
| Change in leased assets | $-1,153$ | $-987$ |
| Change in financial services receivables | $-170$ | $-465$ |
| Cash flows from operating activities | 4,156 | 5,368 |
| Investments in intangible assets (excluding capitalized development costs) and property, plant and equipment | $-1,546$ | $-1,289$ |
| Additions to capitalized development costs | $-1,554$ | $-1,656$ |
| Change in equity investments | $-362$ | $-148$ |
| Cash received from disposal of intangible assets and property, plant and equipment | 9 | 7 |
| Change in investments in securities and time deposits as well as loans | 211 | 11 |
| Cash flows from investing activities | $-3,243$ | $-3,075$ |
| Profit transfer and dividends | $-2,101$ | $-4,895$ |
| Capital transactions with non-controlling interests | - | $-8$ |
| Proceeds from issuance of bonds | 4,908 | 4,277 |
| Repayments of bonds | $-4,555$ | $-3,105$ |
| Changes in other financial liabilities | $-266$ | $-94$ |
| Repayments of lease liabilities | $-90$ | $-83$ |
| Cash flows from financing activities | $-2,103$ | $-3,907$ |
| Effect of exchange rate changes on cash and cash equivalents | $-84$ | $-24$ |
| Net change in cash and cash equivalents | $-1,273$ | $-1,638$ |
| Cash and cash equivalents at end of period | 4,553 | 2,106 |
[^0]
[^0]: 1 Offset against reversals of impairment losses.
In this quarterly statement, Dr. Ing. h.c. F. Porsche Aktiengesellschaft is referred to as "Porsche AG". Porsche AG together with its fully consolidated subsidiaries is referred to as the "Porsche AG Group".
This quarterly statement was prepared in accordance with section 53 of the Exchange Rules for the Frankfurt Stock Exchange and does not represent an interim report within the meaning of International Accounting Standard (IAS) 34 Interim Financial Reporting. This quarterly statement has not been reviewed.
The results of operations and financial position as well as selected financial information were prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. All amounts are rounded in line with common business practice; this can lead to minor differences in total amounts. The current definition of performance indicators can be found in the combined management report for 2023. The report is available on our Investor Relations homepage. > Annual and sustainability report 2023
Inclusive language is a commitment to diversity and equal opportunities. This report therefore uses gender-neutral formulations. For the sake of legibility, any exceptions only use a single form of address, be it diverse or feminine. All formulations expressly apply to all genders and gender identities equally.
This document contains statements concerning the future that are based on the current assumptions and forecasts of Dr. Ing. h.c. F. Porsche Aktiengesellschaft. Various known and unknown risks, uncertainties, and other factors can cause the actual results, results of operations and financial position, development, or performance of Dr. Ing. h.c. F. Porsche Aktiengesellschaft and the Porsche AG Group to deviate considerably from the estimates presented herein (both positively and negatively). Porsche AG is under no obligation without prejudice to existing obligations under capital market law - and does not have the view to update statements concerning the future or correct them if the development differs from the expected result. This document uses notices and links
to refer to websites containing further information outside of this publication. This is merely for supplementary purposes and is exclusively for the simplified access to information. The information contained on the websites in question is not part of this report. This document is an English translation of the original report written in German. In the case of any deviations, the German version of the document shall take precedence over the English translation. For technical reasons, there can be deviations between the accounting records contained in this document and those published due to legal requirements.
The current financial calendar can be found on the Investor Relations homepage of Porsche AG together with a range of other services including information on quoted market prices, corporate presentations and further overviews of key figures.
investorrelations.porsche.com/en
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
70435 Stuttgart Germany
Tel. +49 711 911-0
investorrelations.porsche.com/en
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