1.

Introduction 1
2. Company Profile 3
3. Macro Environment 6
4. Micro Environment 11
5. Internal Environment 22
6. SWOT Analysis 32
7. Porters Generic Strategy 35
8. Ansoffs Growth Strategy 37
9. Strategic Options Evaluation 40
10. Outlook & Recommendations 42
1
1931 1951 1963 1972 1994 2002 2009 2012
Porsche
was founded
Ferdinand
Porsches
death
911
introduction
Porsche AG
most profitable
automotive company
worldwide
SUV
Cayenne
VW as
Porsche shareholder
100%
takeover
by VW
2
3
4
5
6
7
Shift to
Growth
Markets
Modularization
of automotive
platforms
Embedded
electronic task
systems
Low-cost small
cars
Increasing
electrification
of powertrains
8
Stability in Germany
Instability in North Africa and Middle East
Protectionism
Political
Germany as strong exporter
Low GDP growth expectations in Europe
Economic
Aging population in industrialized countries
Democratization of premium goods
Strong demand for luxury vehicles due to social status attraction
Social
E-Mobility development
Low-cost automobiles trend
Technological
Stronger emission limits
Increasing customer awareness of environmental needs
Environmental
Favorable tax system in Germany
Comprehensible judicial system in Germany
Legal
9
10
11
12
Passenger Cars 2010
Change
10/09 in % 2011
Change
11/10 in % 2012
Change
12/12 in %
Europe 16,491,307 -0.7% 17,159,553 4.1% 16,187,240 -5.7%
Europe (EU 27 countries + EFTA) 13,792,051 -4.8% 13,601,051 -1.4% 12,537,514 -7.8%
Westeurope (EU 15 countries + EFTA) 12,984,549 -5.0% 12,815,435 -1.3% 11,773,266 -8.1%
New EU-countries (EU 10 countries) 807,502 -1.3% 785,616 -2.7% 764,248 -2.7%
Germany 2,916,259 -23.4% 3,173,634 8.8% 3,082,504 -2.9%
Russia 1,912,794 30.5% 2,653,688 38.7% 2,755,384 3.8%
USA 5,635,432 4.3% 6,089,403 8.1% 7,241,900 18.9%
Japan 4,203,181 7.6% 3,509,036 -16.5% 4,572,333 30.3%
Brazil 2,644,706 6.9% 2,647,250 0.1% 2,851,540 7.7%
India 2,387,197 31.4% 2,510,313 5.2% 2,773,516 10.5%
China 13,757,794 33.2% 14,472,416 5.2% 15,495,240 7.1%
13
Competitive
Rivalry
T
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r
e
a
t

o
f




N
e
w

E
n
t
r
y

Buyer Power
T
h
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e
a
t

o
f

S
u
b
s
t
i
t
u
i
o
n

Supplier
Power
Threat of New Entry LOW
High capital requirements
Strong brand loyalty
High industry uncertainty

Competitive Rivalry HIGH
Many competitors
Low switching costs
High profits intensifies competition
Buyer Power LOW
Highly differentiated premium cars
Strong brand names
Low price sensitivity
Supplier Power MEDIUM
Mutual dependence

Threat of Substitution LOW
Strong quality of premium cars
Not many equal substitute products
14
15
P
r
e
m
i
u
m

P
r
i
c
e
Brand Strength
L
o
w





































H
i
g
h
Weak Strong
Group 2
Audi
Jaguar Land Rover
Aston Martin
Group 1
Porsche
BMW
Daimler
Rolls-Royce
Group 3
Lamborghini
Ferrari
Group 4
Maserati
16
O
f
f
e
r

R
a
n
g
e
Quality
N
a
r
r
o
w































W
i
d
e
Low High
Group 1
BMW
Daimler
Group 2
Audi
Group 3
Aston Martin
Jaguar Land Rover
Porsche
Group 4
Ferrari
Maserati
Bentley
Rolls-Royce
Group 5
Tesla
Lamborghini
17
Strength Measure
Importance
Weight
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Strength
Rating
Weighted
Score
Quality / product performance 0.15 8 1.2 6 0.9 6 0.9 6 0.9 6 0.9 8 1.2 7 1.05
Reputation/image 0.15 7 1.05 6 0.9 8 1.2 7 1.05 6 0.9 8 1.2 7 1.05
Manufacturing capability 0.10 6 0.9 7 1.05 8 1.2 6 0.9 7 1.05 8 1.2 8 1.2
Technological skills 0.10 8 1.2 8 1.2 6 0.9 6 0.9 8 1.2 7 1.05 6 0.9
Dealer network / distribution
capability 0.05 7 1.05 8 1.2 7 1.05 7 1.05 7 1.05 7 1.05 6 0.9
New product innovation
capability 0.15 7 1.05 6 0.9 5 0.75 6 0.9 7 1.05 6 0.9 5 0.75
Financial resources 0.10 8 1.2 7 1.05 7 1.05 7 1.05 8 1.2 7 1.05 7 1.05
Relative cost position 0.15 8 1.2 6 0.9 6 0.9 5 0.75 7 1.05 6 0.9 6 0.9
Customer service capabilites 0.05 8 1.2 6 0.9 6 0.9 6 0.9 7 1.05 7 1.05 7 1.05
Sum of importance weights 1.00
Overall weighted competitive
strength rating
10.05 9 8.85 8.4 9.45 9.6 8.85
Jaguar Land Rover
Competitive Strength Assessment -
Porsche and competitors Porsche BMW Rolls-Royce Mercedes-Benz Audi Aston Martin
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19
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21
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23
Model Type 1st Last PLC Stage
Boxster Roadster 1996 2012 Maturity
Cayman Coupe 2005 2013 Growth
911 Coupe / Cabriolet 1963 2013 Maturity
Panamera Gran Turismo 2009 2013 Growth
Cayenne SUV 2002 2013 Growth
Release
24
25
26
Porsche AG
Income Statement
million
Year 2012 2011 *2010
Revenue 13,865 10,928 3,867
Changes in inventories and own work capitalized 1,016 1,095 258
Total operating performance 14,881 12,023 4,125
Other operating income 537 657 263
Cost of materials -8,124 -6,822 -2,267
Personnel expenses -1,648 -1,349 -511
Amortization of intangible assets and
depreciation of property, plant and equipment and
leased assets -1,114 -871 -338
Other operating expenses -2,093 -1,593 -566
Profit before financial result 2,439 2,045 706
Finance costs -258 -323 -154
Other financial result 467 386 170
Financial result 209 63 16
Profit before tax 2,648 2,108 722
Income tax -808 -648 -218
Profit after tax 1,840 1,460 504
thereof profit attributable to non-controlling
interests 36 29 9
thereof profit attributable to shareholders 1,804 1,431 495
Profit transferred to Porsche Zwischenholding
GmbH -1,312 -871 -330
*Year 2010: August to December only considered
27
Porsche AG
Key Financial Ratios
million
Year 2012 2011 *2010
Liquidity Ratios
Current Ratio 0.69 0.73 0.59
Working Capital -2,142 -1,727 -2,474
Leverage Ratios
Debt-to-assets-ratio 0.66 0.68 0.67
Debt-to-equity ratio 1.94 2.09 1.99
Long-term debt-to-equity ratio 1.06 1.18 1.08
Profitability Ratios
Gross profit margin 45.4% 43.3% 45.0%
Operating profit margin 17.6% 18.7% 18.3%
Net profit margin 13.3% 13.4% 13.0%
Return on invested capital 11.6% 9.6% 3.6%
Activity Ratios
Days of inventory 55.67 56.23 134.28
Inventory turnover 6.56 6.49 2.72
Other important measures of financial
performance
Internal cash flow 2,954 2,331 842
*Year 2010: August to December only
considered - Income Statement und Cash Flow
28
Cars Sold
Model Variants 2012 2011 Chg. in %
141,075 118,868 18.7%
Boxster /
Cayman
4 11,825 12,753
25,457 19,377
Panamera 8 29,030 26,840
31.4%
8.2%
24.8%
-7.3%
Cayenne 8 74,763 59,898
911 12
29
30
2010 2011 2012
97,273
118,868
141,075
World
2010 2011 2012
37,509
43,748
49,639
Europe
2010 2011 2012
13,211
14,959
17,487
Germany
2010 2011 2012
27,357
34,350
41,060
America
2010 2011 2012
25,321
29,023
35,043
USA
2010 2011 2012
29,838
40,770
50,376
Asia-Pacific
2010 2011 2012
14,785
24,340
31,205
China
31
32
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- strong premium car brand strength - narrow offer range
- high quality cars - low vertical range of manufacture
- strong market power with parent VW - weak liquidity position
- success and team-oriented culture
- flat organization
- outstanding revenues and profits
- superb innovation and design expertise
- strong value added services
- long-term strategy
- strong collaborations
- cost-efficient and flexible production
- modularization of automotive platforms - shift of development and production to growth markets
- increasing demand for e-mobility - increasing demand for low-cost small cars
- mobility concepts for elder people - political instability and protectionism worldwide
- strong demand from BRIC countries - low GDP growth rates worldwide
- rising buyer demand for SUV - changes to the current tax system
- expansion of sportive cars demand - intense competition
- increase in bargaining power of suppliers
- rising raw material prices
- disruptive e-technology developments
- dilution of Porsche brand image
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Evaluation Criteria
Strategic Options
- - - - - - - -
++ ++ ++ ++
+++ +++ +++ +++
+/- +/- + +
+ + +/- +
+/- +/- +/- +/-
+ +/- +/- +
++++ ++++ ++++ ++++
Result
Market development
Diversification
M&A
Alliances
Market penetration III
Internal development I
Suitability Feasibility Acceptability
Consolidation
Product development II
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43
LONG-TERM
SUCCESS
44