Transcription
Group quarterly statement1st Quarter2021
21st Quarter2021Porsche Automobil Holding SE (“Porsche SE” orThe principal criteria of Porsche SE for thethe “company”), as the ultimate parent of theacquisition of investments are the connection toPorsche SE Group, is a European Companyindustrial production or to the future of mobility. The(Societas Europaea) and is headquartered atprerequisites for investment by Porsche SE arePorscheplatz 1 in 70435 Stuttgart, Germany. Asalways the positioning in an attractive marketof 31 March 2021, the Porsche SE Group hadenvironment, an above-average growth profile and908 employees (916 employees).mid- to long-term potential for profitability of the2companies.Porsche SE is a holding company with investmentsin the areas of mobility and industrial technology. InThis group quarterly statement by Porsche SEparticular, it holds the majority of the ordinaryPorsche Automobil Holding SE (“Porsche SE” orshares in Volkswagen AG, one of the leadingthe “company”), as the ultimate parent of theautomobile manufacturers in the world. ThePorsche SE Group, is a European CompanyVolkswagen Group comprises twelve brands with(Societas Europaea) and is headquartered atregistered offices in seven European countries:Porscheplatz 1 in 70435 Stuttgart, Germany. AsVolkswagen passenger cars, Audi, SEAT, ŠKODA,of 31 March 2021, the Porsche SE Group hadBentley, Bugatti, Lamborghini, Porsche, Ducati,908 employees (916 employees).Volkswagen commercial vehicles, Scania and MAN.relates to the development of business and itsThe principal criteria of Porsche SE for theeffects on the results of operations, financialacquisition of investments are the connection toposition and net assets in the first three months ofindustrial production or to the future of mobility. Thethe fiscal year 2021.prerequisites for investment by Porsche SE areThe collaboration between the MAN and ScaniaPorsche SE is a holding company with investmentscommercial vehicle brands is coordinated inin the areas of mobility and industrial technology. InTRATON SE. In addition to the investment inparticular, it holds the majority of the ordinaryVolkswagen AG, the Porsche SE Group holds 100%shares in Volkswagen AG, one of the leadingof the shares in PTV AG as well as non-controllingautomobile manufacturers in the world. Theinterests in five technology companies based in theVolkswagen Group comprises twelve brands withUSA and Israel.registered offices in seven European countries:always the positioning in an attractive marketenvironment, an above-average growth profile andmid- to long-term potential for profitability of thecompanies.This group quarterly statement by Porsche SErelates to the development of business and itseffects on the results of operations, financialposition and net assets in the first three months ofthe fiscal year 2021.Volkswagen passenger cars, Audi, SEAT, ŠKODA,Bentley, Bugatti, Lamborghini, Porsche, Ducati,Volkswagen commercial vehicles, Scania and MAN.The collaboration between the MAN and Scaniacommercial vehicle brands is coordinated inTRATON SE. In addition to the investment inVolkswagen AG, the Porsche SE Group holds 100%of the shares in PTV AG as well as non-controllinginterests in five technology companies based in theUSA and Israel.All figures and percentages are rounded according to customary business practice, so minor discrepancies may arise from the addition ofthese amounts. The comparative prior-year figures are presented in parentheses alongside the figures for the current reporting period.3
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ContentSignificant events and developments6at the Porsche SE GroupSignificant events and developments10at the Volkswagen GroupBusiness development12Explanatory notes on results of operations,16financial position and net assetsOpportunities and risks of future development22Outlook23Glossary275
3Significant events anddevelopments atthe Porsche SE GroupSignificant events and developments at the Porsche SE GroupCovid-19 pandemicThe group result after tax and non-controllinginterests of the Volkswagen Group increased toThroughout 2020, the global spread of the 3.2 billion in the first quarter of 2021 compared toSARS-CoV-2 virus caused enormous disruption to 0.4 billion in the prior-year period during which theall areas of everyday life and the economy.Covid-19 pandemic and the measures taken aroundthe world to contain it had had a significant impactThe mostly dynamic increase in the rate ofon business (see also sections “Businessinfection also continued in many placesdevelopment” and “Results of operations of thethroughout the first quarter of 2021. This wasVolkswagen Group”). At the level of the Volkswagenaccompanied by ongoing disruptions – such asGroup, there was no need to recognize any materialcontact and mobility restrictions or limitations onspecial items in connection with the diesel issue inbusiness activities – in many parts of the world. Thethe first three months of fiscal year 2021.increasing availability of testing capacities andvaccines has led to individual countries allowing thePrices of Volkswagen AG’s preference and ordinaryprogressive opening of everyday life and economyshares also continued to recover from the lossesactivity. The measures taken have led to the easingincurred as a consequence of the pandemic and wereof restrictions particularly in China.up 57% and 82% respectively on year-end 2020.The Porsche SE Group currently assumes that theAs of 31 March 2021, no indicators for an impairmentCovid-19 pandemic is a temporary event that willloss have been identified on the basis of the earningshave a negative impact in the short-term, but not onforecasts and share performance for the investmentthe group’s long-term business performance.in Volkswagen AG accounted for at equity. However,an impairment in the value of the investment cannotbe ruled out, particularly in the event of any sustainedSignificant developments with regard to theinvestment in Volkswagen AG accounted forat equitydecline in earnings due to the Covid-19 pandemicand/or a further increase in the costs of mitigating thediesel issue. In addition, there may be consequencesfor the dividend policy of Volkswagen AG and6Due to its share in capital of Volkswagen AG,therefore for the cash inflows at the level of PorschePorsche SE is significantly influenced by theSE. Please refer to the explanations in the sectiondevelopments at the level of the Volkswagen Group.“Opportunities and risks of future development”.
Group quarterly statement1st Quarter 20214Significant developments and current statusrelating to litigation risks and legal disputesinter alia, explained its preliminary view on the stateof affairs and of the dispute. The next hearings arescheduled to begin on 2 June 2021. Porsche SE is ofFor several years, Porsche SE has been involved inthe opinion that the claims asserted in the suspendedvarious legal proceedings. The main developmentsinitial proceedings are without merit and that thethat occurred in the legal proceedings during therequested establishment objectives in the modelreporting period are described in the following.case will be rejected. Porsche SE considers itsPorsche SE continues not to have reliable findingsopinion endorsed by the previous development of theor assessments that would lead to a differentoral hearing before the Higher Regional Court of Celle.evaluation of the legal risks.In a proceeding pending before the Regional Courtof Frankfurt against an incumbent and a former,Legal proceedings and legal risks in connectionmeanwhile deceased, member of the supervisorywith the expansion of the investment inboard of Porsche SE, Porsche SE joined asVolkswagen AGintervener in support of the defendants. In thisproceeding the same alleged claims are assertedA model case according to the Capital Marketsthat are already subject of a currently suspendedModel Case Act (KapMuG) against Porsche SEaction concerning alleged damages of aboutinitiated by an order of reference of the Regional 1.81 billion (plus interest) pending againstCourt of Hanover dated 13 April 2016 is pendingPorsche SE before the Regional Court of Hanover.with the Higher Regional Court of Celle. Subject ofNo new developments occurred in this proceedingthose actions are alleged damage claims based onduring the reporting period. Porsche SE considersalleged market manipulation and alleged inaccuratethese claims to be without merit.information in connection with Porsche SE’sexpansion of the investment in Volkswagen AG. InSince 2012, Porsche SE and two companies of anpart these claims are also based on allegedinvestment fund have been in dispute over theviolations of antitrust regulations. In the six initialexistence of alleged claims in the amount of aboutproceedings suspended with reference to the modelUS 195 million and have filed lawsuits in Germanycase a total of 40 plaintiffs are asserting allegedand England respectively. On 6 March 2013, theclaims for damages of about 5.4 billion (plusEnglish proceedings were suspended at the requestinterest). Since the beginning of the model caseof both parties until a final decision had beenseveral hearings have already been held before thereached in the proceedings commenced in theHigher Regional Court of Celle, in which the court,Regional Court of Stuttgart concerning the question7
5of which court is the court first seized. A finaldamages. In a majority of the proceedings pendingdecision on this issue continues to be outstanding.before the Regional Court of Stuttgart, the plaintiffNo significant new developments occurred in thisside had filed motions for recusal. To the extent thatproceeding during the reporting period. Currently,decisions have been made on these motions forthe proceedings are pending before the Higherrecusal, they have been dismissed. In numerousRegional Court of Stuttgart. Porsche SE considersproceedings, the Higher Regional Court of Stuttgartthe action filed in England to be inadmissible andhas lately rejected the immediate appeals of thethe asserted claims to be without merit.corresponding plaintiffs against the rejection of theirmotions for recusal as being without merit. After apartial withdrawal of claims, 30 claims for damagesLegal proceedings and legal risks in connectionagainst Porsche SE, with a claim volume (accordingwith the diesel issueto the current assessment of the partially unclearhead of claims) of approximately 8.7 million (plus8In connection with the diesel issue, legalinterest), are pending before the Regional Court ofproceedings with a total volume of approximatelyBraunschweig. A number of the proceedings 1.1 billion (plus interest) are pending againstpending before the Regional Court of Stuttgart andPorsche SE before the Regional Court of Stuttgart,the Regional Court of Braunschweig are currentlythe Higher Regional Court of Stuttgart and thesuspended with reference to the KapMuGRegional Court of Braunschweig. The plaintiffsproceedings pending before the Higher Regionalaccuse Porsche SE of alleged nonfeasance ofCourt of Stuttgart and the Higher Regional Court ofcapital market information or alleged incorrectBraunschweig. Porsche SE considers the actionscapital market information in connection with thefiled against it before the Regional Court of Stuttgartdiesel issue. Some of these proceedings are directedto be without merit. The actions filed againstagainst both Porsche SE and Volkswagen AG.Porsche SE before the Regional Court ofPorsche SE considers the actions to be inadmissibleBraunschweig are considered by Porsche SE toin part, but in any case to be without merit.be inadmissible and to be without merit.Before the Regional Court of Stuttgart 199 actionsIn addition, two further proceedings, in which a totalare currently pending at first instance. Afterof further approximately 164 million (plus interest)withdrawal of a few lawsuits, the actions concernin damages was claimed, are pending before thepayment of damages, if quantified, in the totalHigher Regional Court of Stuttgart on appeal. Theamount of approximately 913.4 million (plusRegional Court of Stuttgart granted these actionsinterest) and in part establishment of liability forin the amount of approximately 47 million (plus
Group quarterly statement1st Quarter 20216interest) and otherwise dismissed the actions ongranted by Porsche SE to the United States of24 October 2018. Porsche SE and the respectiveAmerica for alleged claims for damages.plaintiffs filed appeals. Porsche SE considers theseactions pending against it before the HigherThe investigation proceedings on suspicion ofRegional Court of Stuttgart to be without merit.market manipulation against Matthias Müller,Hans Dieter Pötsch and Prof. Dr. Martin WinterkornA KapMuG proceeding, initiated by order foras well as the regulatory fining proceedingsreference of the Regional Court of Stuttgart ofpursuant to Sec. 30, 130 Regulatory Offences Act28 February 2017, is pending before the Higher(OWiG) against Porsche SE have meanwhile beenRegional Court of Stuttgart. On 22 October 2020, theterminated.Higher Regional Court of Stuttgart appointed a modelcase plaintiff. The beginning of the oral hearings isplanned for the second half of the year 2021.Following corresponding orders to suspend theproceedings by the Regional Court of Braunschweigand the courts of Stuttgart, Porsche SE became afurther model case defendant in the model caseproceedings before the Higher Regional Court ofBraunschweig. The Higher Regional Court ofBraunschweig issued a meanwhile binding partialmodel case ruling regarding questions of jurisdiction.Several oral hearings have taken place before theHigher Regional Court of Braunschweig. The nextoral hearing is set to take place on 8 June 2021.During the reporting period, no significant newdevelopments have occurred with regard to claimsasserted out of court and not yet brought to courtagainst Porsche SE with a total amount ofapproximately 63 million and in some caseswithout defined amounts as well as with regard tothe waiver of the statute of limitations defense9
7Significant events anddevelopments atthe Volkswagen GroupSignificant events and developments at the Volkswagen GroupEffects of the Covid-19 pandemicmore efficiently develop driver assistance systemsand automated in-car driving and parking functionsThe dynamic increase in the rate of infectionfor the group brands. These functions will be tested,continued in many places throughout the firstsupplied and operated for the entire vehicle fleetquarter of 2021. This was accompanied by ongoingwith the help of the Volkswagen Automotive Cloud.disruptions – such as contact and mobilityrestrictions or limitations on business activities – inIn February 2021, the supervisory board ofmany parts of the world.Volkswagen AG gave its approval to entering intoagreements with Rimac Automobili d.o.o., Zagreb,For further details, please refer to the sectionsCroatia, for the establishment of a joint venture. The“Results of operations of the Volkswagen Group”,approval was given subject to further negotiations,“Opportunities and risks of the Volkswagen Group”the completion of the hearing of the works counciland “Anticipated development of the Volkswagenof Bugatti Automobiles S.A.S., Molsheim, France,Group”.and the final decision of the board of managementof Volkswagen AG. A joint product portfolio aimedat developing, producing and distributing electricPartnershipsluxury hyper sports cars is to be the core function ofthe joint venture. Volkswagen is planning toCARIAD SE (formerly Volkswagen car.SW Orgcontribute its consolidated subsidiaries BugattiWolfsburg AG) and Microsoft announced inAutomobiles and Bugatti International S.A.,February 2021 that they would jointly create anStrassen, Luxembourg, to the new joint ventureautomated driving platform. CARIAD SE (CARIAD)structure. The transaction is not expected to beaims to accelerate and further expand thecompleted before the third quarter of 2021.development of automated driving functions.10Volkswagen and Microsoft have already beenIn March 2021, Brose Fahrzeugteile SE Co.working together in a strategic partnership sinceKommanditgesellschaft (Brose) and VW Finance2018 to create the Volkswagen Automotive Cloud,Luxemburg S.A., a subsidiary of Volkswagen AG,which is to be used to provide and operate digitalentered into an agreement to establish a jointlyservices and mobility offerings for the Volkswagenoperated company for the development andGroup vehicle fleet in future. The cloud-basedmanufacture of complete seat units, seat structuresAutomated Driving Platform jointly created by theand components, and solutions for the vehicletwo companies will use Microsoft Azure cloud andinterior. As part of this arrangement, Brose willdata services. CARIAD wants to use this platform toacquire half of the shares of the Volkswagen Group
Group quarterly statement1st Quarter 20218company SITECH Sp. z o.o., Polkowice, Poland(SITECH). Brose and Volkswagen will each holdSupervisory board asserts claims fordamages50% of the planned jointly operated company,whereby Brose will take the industrial lead.At the end of March 2021, the supervisory board ofConsequently, Brose will control the jointly operatedVolkswagen AG announced the completion of thecompany and Volkswagen, given its significantinvestigation initiated in October 2015 into theinfluence following the transaction, will account forcauses of and those responsible for the dieselit as an associate using the equity method. Theissue. The board resolved to claim damages fromtransaction is subject to approval by the antitrustProf. Dr. Martin Winterkorn, former chairman of theauthorities and to further closing conditions. Theboard of management of Volkswagen AG, andtransaction is expected to be completed by the endfrom Rupert Stadler, former member of the boardof the first quarter of 2022.of management of Volkswagen AG and formerchairman of the board of management of AUDI AG,for breach of their duty of care under stockTakeover of Navistarcorporation law. The resolution was based onidentified negligent breaches of duty. TheIn November 2020, TRATON SE (TRATON) andinvestigation found no breaches of duty by otherNavistar International Corporation (Navistar), a leadingmembers of the Volkswagen AG board ofUS truck manufacturer, announced the signing of amanagement. The investigation covered allbinding merger agreement. Under this agreement,members of the board of management who wereTRATON will acquire all outstanding shares in Navistarin office during the relevant period.not already owned by TRATON in return for cashpayment at a price of US 44.50 per share (total:Furthermore, claims for damages are being assertedapproximately US 3.7 billion). As of 31 Decemberagainst individual former members of the AUDI AG2020, TRATON already held a 16.7% interest inand Dr. Ing. h.c.F. Porsche AG boards ofNavistar. Navistar shareholders approved the takeovermanagement. Claims were already asserted againstby TRATON at their annual general meeting ona former member of the Volkswagen passenger cars2 March 2021. The transaction remains subject tobrand board of management.regulatory approval. Completion of the transaction isstill planned for mid-2021: upon completion, TRATONwill become Navistar’s sole owner.11
9Business developmentBusiness developmentThe business development of the Porsche SEThe governments and central banks of numerousGroup is largely shaped by its investment incountries around the world continued to maintainVolkswagen AG as well as the development of thetheir expansive fiscal and monetary policy measures.actions pending. For the business development ofInterest rates remained comparably low. On average,the Porsche SE Group, please refer to the sectionsprices for energy and other commodities rose“Significant events and developments at thesignificantly compared with the prior-year period. InPorsche SE Group” and “Explanatory notes onth
Prices of Volkswagen AG’s preference and ordinary shares also continued to recover from the losses incurred as a consequence of the pandemic and were up 57% and 82% respectively on year-end 2020. As of 31 March 2021, no indicators for
