Porsche withdraws current forecast for group result after tax for FY24

Porsche SE (POAHY) announced that Volkswagen (VWAGY) has informed the company that the current planning of Volkswagen AG and Porsche AG is no longer expected to be concluded by 31 December 2024. Consequently, as of now, Porsche SE cannot rely on the results of a current approved plan of Volkswagen AG and Porsche AG for accounting purposes. The Management Board of Porsche SE will use for the impairment tests on the carrying amounts of the investments in Volkswagen AG and Porsche AG in particular external analyst expectations. On this basis, the Management Board of Porsche SE currently assumes that the impairment tests to be carried out as of 31 December 2024 on the carrying amounts of the investments in Volkswagen AG and Porsche AG in the consolidated balance sheet of Porsche SE as of 31 December 2024 are likely to result in impairment losses. As a result, the Management Board expects that the group result after tax of Porsche SE for the 2024 financial year will be significantly negative. In light of the expected impairment losses, Porsche SE is therefore withdrawing its current forecast for group result after tax in the range of 2.4 billion euros to 4.4 billion euros for the 2024 financial year. For the time being, Porsche SE assumes an impairment of the carrying amount of the investment in Volkswagen AG in the expected range from minus 7 billion euros to minus 20 billion euros and of the carrying amount of the investment in Porsche AG in the expected range from minus 1 billion euros to minus 2 billion euros in the consolidated balance sheet of Porsche SE. A finalization of the impairment tests of Porsche SE can only take place after 31 December 2024, at the earliest when the market parameters and balance sheet data of the investments as of 31 December 2024 and the forecasts of the investments in Volkswagen AG and Porsche AG for the 2025 financial year are available. The expected impairment loss in the consolidated financial statements of Porsche SE in relation to Volkswagen AG will probably not have an impact on the annual financial statements of Porsche SE under German commercial law. The expected impairment losses at the level of Porsche SE or the Porsche SE Group will not have a cash effect and will not affect the forecasts communicated by Volkswagen AG and Porsche AG for the 2024 financial year. Porsche SE confirms its forecast for the net debt of the Porsche SE Group as of 31 December 2024, which is expected to be between 5.0 billion euros and 5.5 billion euros.