Annual Report 20202020 Key figures 2020 2019 2018 IFRS IFRS IFRS Porsche SE Group Total assets € million 36,250 35,592 33,708 Equity € million 35,946 35,284 33,416 Investments accounted for at equity € million 35,259 34,597 32,518 Result from investments accounted for at equity € million 2,641 4,406 3,641 Revenue € million 107 116 103 Personnel expenses € million 80 80 77 Financial result € million 54 24 – 3 Result before tax € million 2,646 4,416 3,514 Result after tax € million 2,624 4,408 3,491 Earnings per ordinary share 1 € 8.56 14.39 11.39 Earnings per preference share 1 € 8.57 14.39 11.40 Net liquidity € million 563 553 864 Employees on 31 December 916 951 935 2020 2019 2018 HGB HGB HGB Porsche SE Net profit € million 703 788 480 Net profit available for distribution € million 676 952 676 Dividend per ordinary share € 2.204 2 2.204 2.204 Dividend per preference share € 2.210 2 2.210 2.210 1 Basic and diluted 2 Proposal to the annual general meeting of the Porsche SE Investments of Porsche SE Core Investment Stake of ordinary shares: 53.3 % (Represents a stake of subscribed capital: 31.4 %) Further Investments Minority stakes Status 10 March 2021 2020 “The fiscal year 2020 was also challenging for Porsche SE. We recorded a positive group result after tax of around 2.6 billion euro, despite conditions remaining difficult overall.” Hans Dieter Pötsch 3 1To our shareholders 6 Letter to our shareholders 8 Company boards of Porsche Automobil Holding SE and their appointments 10 Report of the supervisory board 18 Porsche SE share 26 4 Group management Financials 98 report and management 2report of Porsche 3 Automobil Holding SE 30 Consolidated income statement 100 Consolidated statement Fundamental information 32 of comprehensive income 101 about the group Consolidated balance sheet 102 Report on economic position 34 103 Significant events and developments Consolidated statement at the Porsche SE Group 34 of changes in equity Significant events and developments 104 at the Volkswagen Group 40 Consolidated statement of cash flows Business development 43 Notes to the consolidated 105 Results of operations, financial position financial statements and net assets 47 Porsche Automobil Holding SE (financial statements pursuant 53 to the German Commercial Code) Independent auditor’s report 184 Sustainable value enhancement in the Porsche SE Group 56 Responsibility statement 195 Overall statement on the economic situation of Porsche SE and the Porsche SE Group 57 Remuneration report 58 Opportunities and risks of future development 68 Publication of the declaration of compliance 90 Subsequent events 91 Forecast report and outlook 92 Glossary 97 5 6 To our shareholders Letter to our shareholders 8 Company boards of Porsche Automobil Holding SE and their appointments 10 Report of the supervisory board 18 Porsche SE share 26 7 8 1 Brief an die Aktionäre Letter to our shareholders Dear shareholders, The fiscal year 2020 was also challenging for Porsche SE. The Covid-19 pandemic resulted in a sharp downturn in virtually all major economies. Since March 2020, the Volkswagen Group and its brands have reacted to the pandemic determinedly and taken measures to cushion the impact as best as possible. With the number of new cases falling, the automotive business then began to stabilize again in the second half of the year, not least on the important Chinese market. In consequence, this pleasing development led to Porsche SE recording a positive group result after tax of around 2.6 billion euro for the fiscal year 2020, despite conditions remaining difficult overall. This result was significantly influenced by the result from our investment accounted for at equity in Volkswagen AG of 2.7 billion euro, after 4.4 billion euro in the prior year. Net liquidity of the Porsche SE Group amounted to 563 million euro as of 31 December 2020, compared to 553 million euro as of year-end 2019. Regardless of the Covid-19 pandemic, the automotive industry is undergoing a fundamental change that has accelerated even more this past fiscal year. In light of this, the Volkswagen Group is planning to invest around 73 billion euro in electromobility, hybridization and digitalization over the next five years, thus pushing ahead with its transformation into a technology group. We at Porsche SE support this strategy and are confident that the market value of the Volkswagen Group will increase in the medium to long term. Our subsidiary PTV AG is continuing to push ahead with its strategic development. The modernization of the product portfolio and cloud-based solutions are opening up promising growth perspectives in light of the accelerated digitalization of mobility. Although revenue decreased in the fiscal year 2020 as a result of the pandemic, a positive operating result on a par with the prior year was generated. This is proof that the substantial measures taken by the board of management to improve profitability are working. A positive development is also shown in our venture capital investments. Indeed, the two US companies AEVA and Markforged have announced IPOs as of the end of the first and third quarters of 2021, respectively. In August 2020, Porsche SE invested in the Israeli software company Aurora Labs. The technology from Aurora Labs enables efficient and secure software updates for vehicles via a radio interface and will thus save a considerable amount of time, data volume and cost. 8 To our shareholders Group management report Financials Letter to our shareholders 9 Hans Dieter Pötsch Chairman of the board of management On the legal side, there was little movement in the fiscal year 2020. Most of the scheduled hearings did not take place due to the Covid-19 pandemic. Following a ruling handed down by the Federal Court of Justice, the Higher Regional Court of Stuttgart appointed a model case plaintiff for a case according to the Capital Markets Model Case Act (KapMuG) in October 2020. We are convinced that the lawsuits brought against Porsche SE are without merit and partially also inadmissible. For the fiscal year 2021, we expect a recovery in important automobile markets provided that efforts to sustainably curb the Covid-19 pandemic are successful. On this basis, Porsche SE expects a group result after tax of between 2.6 billion euro and 4.1 billion euro. This is mainly attributable to the result of the Volkswagen Group. Net liquidity in the Porsche SE Group is expected to range between 0.4 billion euro and 0.9 billion euro as of 31 December 2021, not taking into account future investments. For the past fiscal year 2020, the board of management and supervisory board propose that a dividend of 2.21 euro per share be distributed to the holders of preference shares and of 2.204 euro per share to the holders of ordinary shares. The resulting payout of around 676 million euro is on a par with the prior-year amount. An additional encouraging piece of news for our shareholders is that Porsche SE has been admitted to the MDAX as announced by Deutsche Börse at the beginning of March 2021. Admission to the index could result in an increase in the liquidity in our shares, driven for instance by increased demand of index-oriented investors and funds. We are convinced more than ever that Volkswagen AG will successfully help shape the transformation of the automotive industry and that Porsche SE will benefit from this. We continue to count on your trust and your support on this journey. Hans Dieter Pötsch 9 1 10 10 Company boards of Porsche Automobil Holding SE and their appointments MembersMembers of of the the supervisory supervisory board board Dr. Wolfgang Porsche Dr. Hans Michel Piëch Dr. Wolfgang Porsche Dr. Hans Michel Piëch Chairman Deputy chairman Chairman of the supervisory board of Supervisory board of Volkswagen AG Dr. Ing. h.c. F. Porsche AG Appointments: Appointments: AUDI AG, Ingolstadt Appointments: AUDI AG, Ingolstadt AUDI AG, Ingolstadt Dr. Ing. h.c. F. Porsche AG, Stuttgart AUDI AG, Ingolstadt Dr. Ing. h.c. F. Porsche AG, Stuttgart Dr. Ing. h.c. F. Porsche AG, Stuttgart (chairman) Volkswagen AG, Wolfsburg Dr. Ing. h.c. F. Porsche AG, Stuttgart (chairman) Volkswagen AG, Wolfsburg Volkswagen AG, Wolfsburg o Porsche Cars Great Britain Ltd., Reading Volkswagen AG, Wolfsburg o Porsche Cars Great Britain Ltd., Reading o Familie Porsche AG Beteiligungsgesellschaft, o Porsche Cars North America Inc., Atlanta o Familie Porsche AG Beteiligungsgesellschaft, o Porsche Cars North America Inc., Atlanta Salzburg (chairman) o Porsche Greater China, consisting of: Salzburg (chairman) o Porsche Greater China, consisting of: o Porsche Cars Great Britain Ltd., Reading Porsche (China) Motors Ltd., Shanghai o Porsche Cars Great Britain Ltd., Reading Porsche (China) Motors Ltd., Shanghai o Porsche Cars North America Inc., Atlanta Porsche Hong Kong Ltd., Hong Kong o Porsche Cars North America Inc., Atlanta Porsche Hong Kong Ltd., Hong Kong o Porsche Greater China, consisting of: o Porsche Holding Gesellschaft m.b.H., o Porsche Greater China, consisting of: o Porsche Holding Gesellschaft m.b.H., Porsche (China) Motors Ltd., Shanghai Salzburg Porsche Hong Kong Limited, Hong Kong o Schmittenhöhebahn AG, Zell am See Porsche Hong Kong Limited, Hong Kong o Schmittenhöhebahn AG, Zell am See o Porsche Holding Gesellschaft m.b.H., o Volksoper Wien GmbH, Vienna o Porsche Holding Gesellschaft m.b.H., o Volksoper Wien GmbH, Vienna Salzburg o Schmittenhöhebahn AG, Zell am See o Schmittenhöhebahn AG, Zell am See Prof. Dr. Ulrich Lehner Member of the shareholders’ committee Member of the shareholders’ committee of Henkel AG & Co. KGaA of Henkel AG & Co. KGaA As of 31 December 2020 As of 31 December 2020 Appointments: Appointments: Deutsche Telekom AG, Bonn (chairman) Memberships in German statutory supervisory boards Deutsche Telekom AG, Bonn (chairman) Memberships in German statutory supervisory boards o Henkel AG & Co.