Dr. Manfred Döss
Legal affairs and compliance
Member of the executive board

Hans Dieter Pötsch
Chairman of the executive board and Chief Financial Officer

Philipp von Hagen
Investment management
Member of the executive board

Letter to our shareholders

Dear shareholders,

almost ten years ago Porsche SE was founded in November 2007 as part of a change in legal form. This has been a period of positive development, despite all the highs and lows. I would like to highlight four central aspects: Porsche SE holds the majority of the ordinary shares in Volkswagen AG and is a stable anchor shareholder for Europe’s largest automotive group. It certainly made sense to contribute Porsche AG to the Volkswagen Group; under the Volkswagen umbrella, the sports car manufacturer has continued to develop both dynamically and successfully. Porsche SE itself has proven to be a reliable financial holding company and pursues a dividend policy that is geared to sustainability. Furthermore, our company has so far been able to successfully defend itself against all accusations of alleged market manipulation lodged by the Stuttgart public prosecutor in connection with the expansion of the investment in Volkswagen AG. Where rulings have been made in this regard in civil lawsuits, these have also been fended off.

2016 marked a return to profit for Porsche SE. Group profit for the year stands at 1.37 billion euro. This includes the profit from the investments accounted for at equity of 1.45 billion euro, with Volkswagen contributing 1.47 billion euro. As of 31 December 2016, the equity of the Porsche SE Group increased to a total of 27.89 billion euro. Net liquidity amounted to 1.30 billion euro at the end of the past fiscal year.

We also continued our search for suitable investment targets in 2016 as we continue to pursue our goal to establish Porsche SE as a financial investor and preferred investment partner in the market. By having a well-balanced risk profile, we wish to generate a sustainable increase in value for our shareholders. With this in mind, we have continued to look hard at which technical possibilities and business models could play a role for the mobility of the future. This has seen us evaluate several companies and further expand our network.

On the legal side, we were very successful on the whole in the past year: In December 2016, the Federal Court of Justice dismissed the appeal filed by our legal opponents against the refusal to appeal on points of law in a lawsuit originally amounting to 1.3 billion euro. After having several actions with lower claims for damages ruled in our favor in prior years, this was the first time that we were able to successfully defend ourselves against an action involving billions of euro. Furthermore, after several months of intensively collecting evidence, the Regional Court of Stuttgart cleared the former members of the executive board of Porsche SE of all allegations of informationbased manipulation made against them and dismissed the motion for imposing a fine against Porsche SE. Overall, there are currently still seven civil lawsuits pending against Porsche SE due to alleged market manipulation. Porsche SE is also faced with lawsuits from investors in connection with the diesel issue. We continue to regard all allegations to be without merit and will defend ourselves with all the legal means at our disposal.

Over the past few years, we have always highlighted that Porsche SE’s dividend policy is geared to sustainability. And we will continue to abide by this principle. The executive board and supervisory board of Porsche
SE therefore propose a dividend of 1.01 euro per preference share for the fiscal year 2016. Holders of ordinary shares will receive 1.004 euro per share. We will present the proposed dividend for decision to the annual general meeting on 30 May 2017 in Stuttgart.

Based on the current group structure, Porsche SE expects a group profit for the year of between 2.1 billion euro and 3.1 billion euro for the fiscal year 2017. This forecast is based in particular on the Volkswagen Group’s expectations regarding its future development and the uncertainty that continues to surround possible special effects in connection with the diesel issue. Porsche SE aims to achieve a positive net liquidity. This is expected to be between 1.0 billion euro and 1.5 billion euro as of 31 December 2017, not taking future investments into account.

We are convinced that Porsche SE will continue to develop positively in the future. And we will continue to count on your trust and support in the fiscal year 2017.

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Members of the Executive Board

Hans Dieter Pötsch

Chairman of the executive board
and Chief Financial Officer

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Curriculum Vitae

28. March 1951
Born in Traun, near Linz, Austria
Study of industrial engineering at the Technical University of Darmstadt, Germany

1979 - 1987
BMW AG, Munich, Germany - latterly as Head of Group Controlling

1987 - 1991
General Manager for Finance and Administration at Trumpf GmbH & Co.KG, Ditzingen, Germany

1991 - 1995
Chairman of the Board of Management of Traub AG, Reichenbach, Germany

1995 - 2002
Chairman of the Board of Management at Dürr AG, Stuttgart; in addition responsible for the central function 'Quality Management, Planning, Internal Auditing and Company Communications'

2003 - 2015
Member of the Board of Management of Volkswagen AG, Wolfsburg, Germany, Responsible for 'Finance and Controlling'

Since 2009
Member of the Board of Management of Porsche Automobil Holding SE, Stuttgart, Germany, Responsible for 'Finance'

Since 2015
Chairman of the Supervisory Board of Volkswagen AG, Wolfsburg, Germany

Since 2015
Chairman of the executive board of Porsche Automobil Holding SE, Stuttgart, Germany

Dr. Manfred Döss

Legal affairs and compliance
Member of the executive board

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Curriculum Vitae

20. February 1958
Born in Bad Kreuznach, Germany

1978 – 1984
Studies in law at the University of Mainz, Germany

1984 – 1987
Post-graduate clerkship

1987 – 1990
Assistant at the Johannes Gutenberg University, Mainz, Germany

May 1990
Doctorate in law (Dr. jur.)

1990 – 1996    
Employee in the legal department of mg technologies ag, Frankfurt/Main, Germany

1996 – 2004
Head of the legal department of mg technologies ag (today: GEA AG), Frankfurt/Main, Germany

2005 – 2013
Head of group legal/board affairs of RWE AG, Düsseldorf, Germany

Since May 2013
Head of the legal department and general representative of Porsche Automobil Holding SE, Stuttgart, Germany

Since January 2016
Member of the executive board of Porsche Automobil Holding SE, Stuttgart, Germany Responsible for 'legal affairs and compliance'

Since January 2016
Head of group legal affairs of Volkswagen AG, Wolfsburg, Germany

Philipp von Hagen

Investment management
Member of the executive board

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Curriculum Vitae

23. March 1970
Born in Berlin, Germany

Study
London School of Economics & Political Science (LSE)
B.Sc. (Econ.) – Industrial & Business Economics

University of Oxford, United KingdomM.Phil. (Economics)

1995 – 1997
Daiwa Europe Limited, London, United Kingdom
Corporate Finance / Equity Capital Markets

1997 – 1998
Intercapital Securities Limited, London, United Kingdom
Corporate Finance

1998 – 2012
Rothschild
NM Rothschild & Sons Limited, London, United Kingdom as well as
Rothschild GmbH, Frankfurt am Main, Germany
Global Financial Advisory

Since 2012
Member of the executive board of Porsche Automobil Holding SE, Stuttgart, Germany
Responsible for 'Investment Management'