Our business developed positively in 2023: The group result after tax of Porsche SE amounted to 5.1 billion euro. This group result after tax was significantly influenced by the result of our core investments in Volkswagen AG and Porsche AG accounted for at equity of 4.8 billion euro and 0.4 billion euro, respectively. Overall, Volkswagen AG and Porsche AG achieved good results despite the continuing difficult economic situation due to the war in Ukraine, ongoing supply chain issues and above-average inflation. Porsche SE consistently supports the strategic orientation of both Volkswagen AG and Porsche AG. We are convinced that these two core investments will successfully drive forward the transformation of the automotive industry.

The net debt position of the Porsche SE Group decreased to 5.7 billion euro as of 31 December 2023, compared to 6.7 billion euro as of 31 December 2022. In addition to the dividends from our core investments Volkswagen and Porsche AG, Porsche SE received tax-related refunds of around 500 million euro. This has further strengthened our liquidity position and increased the financial headroom to repay financial debt and make value-increasing investments. In order to maintain a sound financial profile, we continue to focus on an investment grade profile. In the long term, we aim to achieve a low double-digit loan-to-value ratio.

In the portfolio investments segment, we have made further investments in companies in the mobility and industrial technology sector. Amongst others, our portfolio companies also serve the growth markets for electrified and connected mobility and high-performance computing.

We were successful on the legal side as well. In March 2023, the Higher Regional Court of Stuttgart issued a model case ruling in a capital markets model case in connection with the diesel issue. In its ruling, the Higher Regional Court did not side with the plaintiffs and the establishment objectives sought against Porsche SE were overwhelmingly not made. On the basis of the establishments objectives made in the model case ruling and the current status of the matter in dispute in the initial proceedings, all investor claims against Porsche SE are expected to be dismissed. The ruling is not yet legally binding.

Looking to the fiscal year 2024, we expect Porsche SE to generate a group result after tax of between 3.8 billion euro and 5.8 billion euro. We also aim to further reduce the group’s net debt by 31 December 2024. The group’s net debt is estimated to amount to between 5.0 billion euro and 5.5 billion euro.

As in prior years, the board of management and the supervisory board would like you, our shareholders, to participate in our company’s success. We continue to pursue a dividend policy based on reliability and stability. For the fiscal year 2023, we therefore propose a dividend of 2.56 euro per share to be distributed to the holders of preference shares and of 2.554 euro per share to the holders of ordinary shares. This is equivalent to a total distribution of 783 million euro.

Porsche SE pursues the overarching goal of creating sustainable value for our shareholders. This requires investing in companies that contribute to the mid- and long-term profitability of the Porsche SE Group. At the same time, we want to ensure the availability of sufficient liquidity reserves. Our existing core investments in Volkswagen AG and Porsche AG make a significant contribution to this. In the long term, we will expand our investment activities and further develop Porsche SE as an investment platform. This also includes intensifying our partnerships with leading global investors. Diversifying the investment portfolio will increase the resilience of Porsche SE.

Annual investments in the low triple-digit million range are planned for the further expansion of the portfolio investments segment. In addition to the mobility and industrial technology sectors, we will also be investing in related areas. Sustainability aspects are an integral part of our corporate governance and the strategy of the Porsche SE Group.

Our strong group result, the positive development of net debt and the successful investments show that we have successfully developed Porsche SE in the past year. We will consistently pursue this path in 2024. While doing so, Porsche SE continues to count on your trust and support.

Hans Dieter Pötsch