Porsche Automobil Holding SE

Porsche Automobil Holding SE
Blake Bork
ACG 2021.002

Get Ready!

Executive Summary
During the past two years, Porsche SE has had it’s fair
share of high and low days. Recently, Porsche SE is
getting it’s feet back on the ground and will start to rise
at the rate it previously once did. With it’s future merger
with Volkswagen AG, it will become a powerhouse in
the automotive industry, having majority share holdings
in over 10 companies. Porsche SE is accelerating on
mountain of automotive giants.
Annual Report

Prof. Dr. Martin Winterkorn
Introduction
Stuttgart-Zuffenhausen, Germany
Ending Fiscal Year: 31 July 2010
High-end sports cars
World-wide
USA with Porsche AG
Europe with Porsche SE

Audit Report
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft
Translation: Ernst & Young Limited Liabilities Audit Firm
The Porsche SE company is growing stronger with the
merger process of Volkswagen AG and will continue to
do so throughout the coming years.

Stock Market Information
Current Stock Price: €67.76
$91.39
€37.62 - €67.76
$50.76 - $91.39
Dividend: .10
16 Feb. 2011
Buy! The stock of this company is only going to
continue to rise.

Industry Situation and
Company Plans
The company is expanding it’s reigns as an automotive leader. It holds a majority of
shares in Volkswagen AG at 50.7%. In addition to the expansion, they are releasing
new vehicles that will exceed the expectations of a sports car in the public eye and
create a new standard in the industry.
Holding Structure
Porsche
In Porsche’s letter to it’s stock holders, it brings hope of creating a complete
merger between Volkswagen AG and Porsche SE. This would limit the liabilities for
Porsche SE and unite to create a larger automotive manufacturer.
Stock Holders Report

Multistep
Income Statement
Nothing but increase!

Balance Sheet
Major Decreases:
Other liabilities accounts
Liabilities to banks
Major Increases:
Receivables
Equity

Statement of Cash Flows
The past two years have been dificult for Porsche, but more
recently times because of their interest in Volkswagen AG and
new technological advancements, they are on the rise once again.
The company is going to be more than doubling it’s size with the
expected merger and investments between Porsche SE and
Volkswagen AG.
Primary source of financing long-term loans.
Cash has decreased in the past years because of back payments
to credit commitments which expired during this fiscal year.

Accounting Policies
Shares in affiliated companies and equity investments are stated at the lower of cost
or market.
Receivables and other assets are valued at the lower of cost or market. Specific bad
debt allowances provide for all foreseeable risks.
Provisions for pensions and similar obligations are recognized using actuarial
principles in accordance with the method pursuant to Sec. 6a EStG on the basis of
the current mortality tables from Prof. Dr. Klaus Heubeck and an interest rate of 5%.
Sundry provisions account for all foreseeable risks.
Liabilities are recognized at the amount repayable.
Foreign currency liabilities are generally translated at the historical rate or the rate on
the reporting date, whichever is higher.

Financial Analysis
Liquidity Ratios
€ Million 2010 2009
Working Capital -€5,335 €10,006
Current Ratio 0.17 1.13
Receivable Turnover 1.28 1.23
Average Days Sales
Uncollected
286.28 295.79
Inventory Turnover 2.86 2.44
Average Days Inventory on
Hand
127.62 149.59
Porsche SE hasn’t had the opportunity to expand with the recent developments
of investing in Volkswagen AG. That caused Porsche to have such a contrast
between fiscal years.

Financial Analysis
Profitability Ratios
2009/10 2008/09
Profit Margin 12.68% 27.19%
Asset Turnover 0.29 0.28
Return on Assets 3.53% 7.57%
Return on Equity 10.41% 22.33%
Porsche SE had significantly lower numbers in 2009/10 across
the board because of low sales and lower income than that of
2008/09.

Financial Analysis
Solvency Ratio
2009/10 2008/09
Debt to Equity 0.36 5.07
Between the two fiscal years, Porsche SE did as much as
possible to lower their liabilities. The ratio in 2008/09 is so large
due to a significant greater liabilities than equity.

Financial Analysis
Market Strength Ratios
Price/Earning per
Share
2009/10 2008/09
2.03 0.11
Dividend Yield 0.001 0.003
Porsche SE stock fluctuated in the past several
years due to merger issues and lawsuits.