Half-yearly financial report 1 January – 30 June 20212021 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 30 June 2021 4 Content Interim group management report 7 Significant events and developments 10 at the Porsche SE Group Significant events and developments 15 at the Volkswagen Group Business development 18 Explanatory notes on results of operations, 22 financial position and net assets Opportunities and risks of future development 26 Outlook 27 Glossary 31 Condensed consolidated interim 33 financial statements Consolidated income statement 34 Consolidated statement of comprehensive income 35 Consolidated balance sheet 36 Consolidated statement of changes in equity 37 Consolidated statement of cash flows 38 Selected explanatory notes 39 Review report 57 Responsibility statement 58 5 6 Interim group management report 7 8 3 1 January – 30 June 3 Interim2021 group management report Porsche Automobil Holding SE (“Porsche SE” or The investment strategy of Porsche SE aims to the “company”), as the ultimate parent of the create sustainable value for its shareholders. This is Porsche SE Group, is a European Company based on the increase in value of assets under (Societas Europaea) and is headquartered at management as well as dividend distributions. The PorscheplatzInterim group 1 in 70435 management Stuttgart, Germany. report As of investments of Porsche SE fall into two categories. 30 June 2021, the Porsche SE Group had 894 The first category includes the long-term core employees (916 employees). investment in Volkswagen AG. The second category comprises portfolio investments that Porsche SE Porsche Automobil Holding SE (“Porsche SE” or The investment strategy of Porsche SE aims to Porsche SE is a holding company with investments generally holds for a temporary period of time. the “company”), as the ultimate parent of the create sustainable value for its shareholders. This is in the areas of mobility and industrial technology. In Typically, such investments are characterized by Porsche SE Group, is a European Company based on the increase in value of assets under particular, it holds the majority of the ordinary their high potential for growth and for increasing (Societas Europaea) and is headquartered at management as well as dividend distributions. The shares in Volkswagen Aktiengesellschaft, Wolfsburg value during the holding period. The sector focus in Porscheplatz 1 in 70435 Stuttgart, Germany. As of investments of Porsche SE fall into two categories. (“Volkswagen AG”, “Volkswagen” or “VW”), one of both investment categories is on mobility and 30 June 2021, the Porsche SE Group had 894 The first category includes the long-term core the leading automobile manufacturers in the world. industrial technology. employees (916 employees). investment in Volkswagen AG. The second category The Volkswagen Group comprises twelve brands comprises portfolio investments that Porsche SE with registered offices in seven European countries: Porsche SE is a holding company with investments generally holds for a temporary period of time. Volkswagen passenger cars, Audi, SEAT, ŠKODA, in the areas of mobility and industrial technology. In Typically, such investments are characterized by Bentley, Bugatti, Lamborghini, Porsche, Ducati, particular, it holds the majority of the ordinary their high potential for growth and for increasing Volkswagen commercial vehicles, Scania and MAN. shares in Volkswagen Aktiengesellschaft, Wolfsburg value during the holding period. The sector focus in The collaboration between the MAN and Scania (“Volkswagen AG”, “Volkswagen” or “VW”), one of both investment categories is on mobility and commercial vehicle brands is coordinated in the leading automobile manufacturers in the world. industrial technology. TRATON SE. In addition to the investment in The Volkswagen Group comprises twelve brands Volkswagen AG, the Porsche SE Group holds 100% with registered offices in seven European countries: of the shares in PTV Planung Transport Verkehr AG, Volkswagen passenger cars, Audi, SEAT, ŠKODA, Karlsruhe (“PTV AG”), as well as non-controlling Bentley, Bugatti, Lamborghini, Porsche, Ducati, interests in five technology companies based in the Volkswagen commercial vehicles, Scania and MAN. USA and Israel. At the end of July, Porsche SE The collaboration between the MAN and Scania invested in an additional technology company in commercial vehicle brands is coordinated in Germany. TRATON SE. In addition to the investment in Volkswagen AG, the Porsche SE Group holds 100% of the shares in PTV Planung Transport Verkehr AG, Karlsruhe (“PTV AG”), as well as non-controlling interests in five technology companies based in the USA and Israel. At the end of July, Porsche SE invested in an additional technology company in Germany. All figures and percentages are rounded according to customary business practice, so minor discrepancies may arise from the addition of these amounts. The comparative prior-year figures are presented in parentheses alongside the figures for the current reporting period. 9 All figures and percentages are rounded according to customary business practice, so minor discrepancies may arise from the addition of these amounts. The comparative prior-year figures are presented in parentheses alongside the figures for the current reporting period. 4 Significant events and Significantdevelopments events and developments at at the Porsche SE Group the Porsche SE Group Significant events and developments at the Significant developments with regard to the Porsche SE Group are presented in the following. investment in Volkswagen AG accounted for The explanations refer to events and developments at equity in the second quarter of the fiscal year 2021, unless reference is made in this section to another time Due to its share in capital of Volkswagen AG, period. Porsche SE is significantly influenced by the developments at the level of the Volkswagen Group. Global spread of the coronavirus In the first half of 2021, the group result after tax SARS-CoV-2 and non-controlling interests of the Volkswagen Group increased to €8.1 billion compared to minus Throughout the whole of 2020, the global spread of €1.2 billion in the prior-year period, in which the the SARS-CoV-2 virus brought enormous disruption result had been negatively influenced by special to all areas of everyday life and the economy. items in connection with the diesel issue of minus €0.7 billion. Furthermore, the Covid-19 pandemic The mostly dynamic increase in the rate of infection and the measures taken around the world to contain continued in many places throughout the first it had had a significant impact on business (see also quarter of 2021. This was accompanied by ongoing sections “Business development” and “Results of disruptions – such as contact and mobility operations of the Volkswagen Group”). At the level restrictions or limitations on business activities – in of the Volkswagen Group, no material special items many parts of the world. With the increased in connection with the diesel issue in the first six availability of testing capacities and vaccines, some months of fiscal year 2021 were recognized. countries have permitted the extensive reopening of everyday life and the economy. In China in particular, Volkswagen AG’s preferred and ordinary shares also the measures taken have resulted in a removal of recovered from the losses caused by the pandemic, restrictions. In most of the world, infection rates with prices up by 39% and 63% respectively declined in the second quarter of 2021, leading to compared to the end of 2020. further easing of the measures taken to contain the pandemic. However, some countries in South and As of 30 June 2021, no indicators for an impairment Central America, Asia and Europe recorded a new loss have been identified on the basis of the rise in infections, which was primarily due to new earnings forecasts and share performance for the variants of the SARS-CoV-2 virus. Some restrictions investment in Volkswagen AG accounted for at returned in response to the situation. equity. However, an impairment in the value of the 10 Half-yearly financial report Interim group management report 5 investment cannot be ruled out, particularly in the Significant developments and current status event of any sustained decline in earnings due to relating to litigation risks and legal disputes the Covid-19 pandemic and/or a further increase in the costs of mitigating the diesel issue. In addition, For several years, Porsche SE has been involved in there may be consequences for the dividend policy various legal proceedings. The main developments of Volkswagen AG and therefore for the cash inflows that occurred in the legal proceedings during the at the level of Porsche SE. Please refer to the reporting period are described in the following. explanations in the section “Opportunities and risks Porsche SE continues not to have reliable findings of future development” in the combined or assessments that would lead to a different management report for the fiscal year 2020. evaluation of the legal risks. Annual general meeting Legal proceedings and legal risks in connection with the increase of the investment in On 23 July 2021, Porsche SE held its annual Volkswagen AG general meeting as a virtual event for the second time. Resolutions included the distribution of a A model case according to the Capital Markets dividend for the fiscal year 2020 of €2.210 per Model Case Act (KapMuG) against Porsche SE preference share and €2.204 per ordinary share, initiated by an order of reference of the Regional unchanged on the prior year. The total distribution Court of Hanover dated 13 April 2016 is pending therefore comes to around €676 million. with the Higher Regional Court of Celle. Subject of those actions are alleged damage claims based on The members of the board of management and alleged market manipulation and alleged inaccurate those of the supervisory board holding office in the information in connection with Porsche SE’s fiscal year 2020 were exonerated.