911 Carrera Cabriolet

Photo: Porsche

Boxster

Photo: Porsche

Stuttgart, Germany - In the 1999/2000 fiscal year that ended on July 31, 2000, Dr. Ing. h.c. F. Porsche AG again achieved outstanding results in all the main business-data areas. Group turnover went up by 15.4 percent to 7.134 billion German Marks (DM), mainly as a result of increased vehicle sales volume. Despite increased development expenditure for the forthcoming third model line (the Porsche Cayenne), the pre-tax result was boosted to 848.5 million DM, 21.5 percent above the previous year's figure (698.2 million DM). The Group's surplus for the year after tax was 410.7 million DM (373.3 million DM in the previous fiscal year). Profit per share has risen from 254 DM in the previous year to 268 DM; in both cases the new DVFA calculation formula dating from 1998 was applied.

Strong worldwide demand increased sales

Demand for the two model lines, the 911 and the Boxster, was extremely vigorous all over the world. A total of 48,797 Porsche sports cars was delivered to the dealer organization, 10.9 percent more than in the previous fiscal year. Sales of Boxster models, at 25,747 units, were well above the previous year's total (20,892); the Boxster S, introduced in October 1999, accounted for 41.8 percent of this figure (10,770 units). 23,050 of the classic 911 sports cars were sold, matching the already high figure achieved a year previously (23,090) and including 1,605 Turbo models, although this only reached the showrooms in June 2000.

In North America, sales again increased at an above-average rate of 15.5 percent, to a total of 23,294 vehicles. Other export markets took 13,749 cars (a 4.1 percent increase) and therefore maintained their growth. In Germany, sales defied the general market trend and rose by 10.8 percent to 11,754 vehicles.

Output stepped up

Altogether, Porsche built 48,815 vehicles, 8.2 percent more than in the previous year (45,119). This was only possible by increasing Boxster production in Finland. Including the 16,803 cars assembled there (13,455 in the previous year), 25,865 Boxster and Boxster S cars were produced. 911 production totaled 22,950 units.

Many new jobs created

As a result of the company's growth course, the Group workforce rose by seven percent to 9,320 employees. This increase is due to a large extent to the recruitment of further engineers and technicians for the development of the Cayenne. The staff of other corporate divisions was also enlarged in view of the approaching launch of the third model line, and additional personnel was needed because of the expansion of our vehicle sales subsidiaries and contract development work for outside clients.

Increased dividends: 30 DM for preferred shareholders

In view of the successful course of business during the past fiscal year, the shareholders' general meeting on January 19, 2001 will be invited to approve a dividend payment of 29 DM (previous year: 24 DM) per share to holders of common stock and 30 DM (previous year: 25 DM) per share to holders of preferred stock. This will involve the distribution of a total sum of 51.6 million DM. Following the allocation of 108 million DM to retained earnings that has already been agreed by the Executive and Supervisory Boards, a proposal will be submitted to the shareholders' general meeting to allocate a further 56.4 million DM in the same way.

Conversion to no-par-value shares and a share split

At the annual general meeting shareholders will be also requested by the Executive and Supervisory Boards of Porsche AG to approve a conversion to no-par-value shares. At the same time the nominal value of the capital stock is to be converted to Euro and the shares split in a ratio of 1:10.

Growth has continued in the current year

Porsche has been able to maintain its pattern of growth in the current fiscal year. In the first four months (August to November 2000 inclusive), Group turnover rose, compared with the same period of the previous year, by 14 percent to approximately 2.15 billion DM; these are provisional figures. Sales went up by 8 percent to approximately 14,397 vehicles, including 6,857 units of the Boxster and Boxster S. Total vehicle output during the period was approximately 15,761 units and therefore 11 percent higher than in the equivalent period of the previous year.

Thanks to persistent strong demand for both model lines and the increase in Turbo build volume to approximately 4,000 units, Porsche will in all probability be able to raise its sales volume for the complete 2000/01 fiscal year to beyond 50,000 vehicles. As a result, the consolidated turnover will probably exceed the previous year's figure as well. Although the burden of expenditure on development work for the third model line, and also on investments at the new plant in Leipzig, will be still higher during the current fiscal year, it can none the less be assumed that the Group's earnings situation will remain satisfactory.

(Dec. 6, 2000)