Pioneering spirit. Annual and Sustainability Report of Porsche AG 2019 About this report Report design Reporting standard and assurance Responsible interaction with people, the GRI 102-49 environment and wider society right along the This report was prepared in accordance with Pioneering spirit. value-added chain – from suppliers to the the Core option of the GRI Standards. The recycling of products – is of fundamental GRI Content Index at the end of the report lists importance to Porsche and is firmly rooted in the information that has been reported on its core. The company also ensured minimal and the locations where this can be found in ecological impact with the design of the the print and online versions. Within the current Business and Sustainability Report: scope of the Materiality Disclosures Service, not only is the cover partly composed of GRI Services has reviewed whether the residual materials from organic products GRI Content Index is clearly structured and featured in food manufacturing and other whether the information specified for processes, the paper is FSC-certified and the GRI 102-40 to 102-49 corresponds to the CO2 emissions generated during printing respective sections of the report. In addition “ Porsche has only been able have been reduced or offset. to careful data collection and recording via internal reporting and processing systems, as well as detailed internal consolidation and to remain Porsche because it Report contents and period inspection of the information and data con- GRI 102-46, 102-48 tained therein, a business audit pursuant to This documentation represents the fourth ISEA 3000 (Revised) was conducted to obtain time that Dr. Ing. h.c. F. Porsche AG has pub- limited assurance against the relevant criteria has always adapted.” lished the Annual and Sustainability Report and requirements of the GRI Standards. The in combined format. The company published information reviewed is marked accordingly in its first report in this format for the financial the report ( ). The statement from the inde- year 2016 on 17 March 2017. The report is pendent auditor is featured on page 201. Oliver Blume, 2019 published annually. This report covers the period from 1 January 2019 to 31 December 2019. Information dating from before this Separate non-financial consolidated report period is also included for completeness. Dr. Ing. h.c. F. Porsche AG makes use of the Unless otherwise specified, the reporting exemption provision in sections 289b(2) and date is 31 December 2019. The editorial 315b(2) of the German Commercial Code deadline was in February 2020. Unless other- (HGB), allowing it not to issue a non-financial “ If one does not fail at times, wise indicated, all information refers to report and a non-financial consolidated Dr. Ing. h.c. F. Porsche AG. If content that had report, and refers to the separate non-financial been previously published has since been report of Volkswagen AG for the financial corrected – for example, due to changes in year 2019, which will be available on the then one has not challenged collection methods for key figures and data – www.volkswagen.com website in German and this is indicated. Financial analyses as well as English from 30 April 2020. key figures and data are given in compact himself.” form at the end of the report and in detailed form online in the Porsche Newsroom (newsroom.porsche.com). This site also con- tains further information on Porsche as a Ferry Porsche, 1969 company and its sustainability work. Manage- ment approaches to major topics in this report are contained in the section entitled “Action areas”. natureOffice.com | DE-137-711254 07 Letter from the Executive Board of Porsche AG 09 Important events 65 Sustainability management 77 Stakeholder management 85 Action areas 99 Employees, Society, 129 Research and development Business performance Sustainability strategy External stakeholder dialogue Innovative Mobility Sports, Communications Vehicles Outlook Porsche Sustainability Index Internal stakeholder dialogue Reliable Partner Employees Technology Sustainability organisation Stakeholder survey and materiality Go to Zero Society Sustainable Development Goals Sports Communications 139 Sales, Production, Procurement 158 Financial analysis 168 Financial data 182 Key figures 190 Further information 202 Legal notice Sales Net assets Consolidated income statement Key economic figures The Supervisory Board Production Financial position Consolidated statement of Key figures for environment Emission and consumption information Procurement Results of operations comprehensive income and energy GRI Content Index Consolidated statement of financial position Key figures for personnel and Porsche AG Group – Brief overview Consolidated statement of cash flows social matters Independent Practitioner’s Report Consolidated statement of changes in equity Value added statement Letter from the Executive Board of Porsche AG Dear Reader, The year 2019 marked the dawning of a new era for Porsche. combined heat and power plants – powered by biogas, At the start of September we unveiled the Taycan, our first which we obtain from residual materials and waste fully electric sports car and the result of many years of products. All of these measures are important steps to- strategic development work. We created around 2,000 new wards our aim of becoming a zero-impact company across jobs for our sixth model and launched a comprehensive all value- added processes. At the same time, we adhere training offensive. We have invested in our Zuffenhausen to a clear principle that firstly involves avoiding a negative site and commissioned a new production line, creating impact, then reducing it and only then offsetting it. a factory within a factory that is consistently geared towards sustainability. Porsche embraces its social responsibility. We support a wide range of charitable initiatives in the fields of culture, Operating results are equally positive. Deliveries have sport, education and science, the environment and various reached their highest point, 10 per cent higher than the social projects. We do this primarily at our company previous year at more than 280,000 vehicles. Sales locations. Whether improving the prospects of children have also risen by 11 per cent to 28.52 billion euros. The and young people or supporting disadvantaged people, operating income before special items was 4.40 billion solidarity literally extends beyond our factory gates. euros, an increase of three per cent on the previous year. All of the things that were important in 2019 still apply Our employees have made this success possible – with as we embark on a new decade: Porsche is continuing to passion, a pioneering spirit and strong power play in develop. We are linking our past to the future with our relation to new models. These include the 911 Cabriolet, models. At the same time, the transformation of the auto- the Cayenne Coupé, the 911 Speedster, the 935, the motive industry represents a challenge. We are thinking in 718 Spyder, 718 Cayman GT4, the Macan Turbo and the terms of opportunities here. Together with our employees, Taycan Turbo, Turbo S and 4S. The Taycan completes we are continuously driving this transformation forward our range of three different drive systems. We are pursuing in a positive sense. a clear product strategy: emotional petrol models, dynamic plug-in hybrids and innovative electric sports cars. Porsche has only remained Porsche because it has constantly embraced change. Porsche is committed to innovation. Many of the technol- ogies found in our production vehicles have their origins in motorsport. Last year proved to be one of the most successful in our motor racing history. In GT sport we won The Executive Board every title in the World Endurance Championship (WEC). of Porsche AG We also secured overall victories in the North American IMSA racing series and triumphed in the highly competitive Intercontinental GT Challenge. In addition, we made our debut in the Formula E series last autumn with the Porsche 99X Electric – and immediately made it onto the podium in the first race. Michael Steiner Albrecht Reimold Detlev von Platen Oliver Blume Our Porsche Strategy 2025 is taking hold. It is the basis Research and Development Production and Logistics Sales and Marketing Chairman of the for our company’s activities. Important decisions have Executive Board already been taken in 2019 to set the course for the future development of the company. Furthermore, over the past two years we have been making good progress with an income programme aimed at ensuring the future economic stability of Porsche. It involves intelligent ideas that bolster our income. For instance, we are employing more digital methods, reducing our variety of versions, using more carry-over parts and developing new business ideas. We Lutz Meschke Uwe-Karsten Städter Andreas Haffner are confident that we will also be able to achieve the target Deputy Chairman Procurement Human Resources yield of 15 per cent with these measures in the future. of the Executive Board Finance and IT Sustainability is a central pillar of the Porsche strategy. Here we are aware of every aspect of our corporate respon- sibility: economic, environmental and social. One good example is the Taycan factory, with which we have made the entire main factory in Zuffenhausen carbon-neutral. The new buildings are energy-efficient, while the power comes from regenerative sources. We generate the heat in our own 7 Letter from the Executive Board of Porsche AG The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193 – 194. 8 Important events Business performance Outlook Porsche is a pioneer of sustainable mobility. Sustainability is in our DNA. Our sustainability strategy is guided by a clear set of key figures and pursues measurable goals. Take the all-electric Taycan, for example: an emotionally appealing sports car that blends tradition and the future. The figures for fuel consumption, energy consumption and CO₂ emissions are found on pages 193 – 194.