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Ladies and gentlemen.
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of the Supervisory Board of Porsche AG. I hereby open today's Annual General Meeting and assume the chairmanship of the meeting.
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I would like to extend a warm welcome to you all, also on behalf of my colleagues of the Supervisory Board and the Executive Board.
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The annual general meeting is held at the FILharmonie in Filderstadt as a virtual annual general meeting.
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The virtual format is now tried and tested and widely used. You have extensive rights to speak, ask questions, and file motions. The virtual format enables you to participate in the annual general meeting in an efficient and resource-friendly way.
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We also reduce costs for the company and hence for shareholders.
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For these reasons in particular, the Executive Board has decided to invite shareholders to a virtual Annual General Meeting.
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I will host this virtual Annual General Meeting. In the event that I should leave the meeting even for a short time, I have appointed Deputy Chairwoman of the Supervisory Board, Miss Giordana Bugazzi, as my deputy.
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In addition, the Supervisory Board has appointed Supervisory Board member Hans Dieter Pötsch as a further deputy.
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The members of the Executive Board are all present.
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I welcome the Chairman of the Executive Board, Dr. Oliver Blume.
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The members of the Executive Board, Matthias Becker.
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Dr. Jochen Breckner.
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Ms. Barbara Frenkel.
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Mr. Andreas Haffner.
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Mr. Sajjad Khan.
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Mr. Albrecht Reimold.
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Dr. Michael Steiner.
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Hans Michel Piëch
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Piëch excused himself. The other members of the Supervisory Board are also all present.
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I would also like to welcome the notary, Dr. Peter Siegel, who is taking the notarial minutes.
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The company's proxies are also present on site.
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Ladies and gentlemen. The Annual General Meeting was convened in due form and time.
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The convocation was published on April 7, 2025, in the Federal Gazette.
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Information and documents relating to the annual general meeting can be found on our website under Investor Relations.
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We have not received any amendments to the agenda.
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Shareholders and their proxies can follow the entire Annual General Meeting via the investor portal.
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Only the holders of common shares are entitled to vote during this.
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To speak during this AGM.
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The Annual General Meeting will also be translated into English.
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In addition, my introductory remarks and those of the Executive Board will be broadcast live on the company's website for all interested parties.
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My introductory remarks and the report of the Executive Board.
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Will also be available on the company's website after the end of the Annual General Meeting.
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A written preliminary version of the CEO's speech was also available there in advance.
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The list of participants can be found in the investor portal.
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You can exercise your voting rights by electronic postal vote or by authorizing the proxies of the company.
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Or third parties via the investor portal.
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Only ordinary shareholders of the company and their representatives are entitled to vote at this meeting. You can also register your contributions via the investor portal. This function is already available.
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You will be invited to a technical check shortly after you have submitted your contribution.
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I shall reserve the right to restrict the right to speak and ask questions, particularly in the event that a legitimate conclusion of the Annual General Meeting cannot otherwise be guaranteed. I hereby stipulate that the right to information pursuant to section 131, sentence one of the German Stock Corporation Act may only be exercised at the Annual General Meeting by means of video communication.
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Duly registered shareholders were also able to submit their written statements in advance.
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We did not receive any such statements.
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If you wish to raise an objection to a resolution passed at today's Annual General Meeting, you can also do so via the investor portal. This function has been activated for you since the start of the Annual General Meeting and will remain active until the end of the Annual General Meeting.
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You also have the option of submitting a complaint, for the record, via the investor portal if you believe that questions have not been answered or have not been answered sufficiently.
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As usual, recordings of the Annual General Meeting are not permitted.
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A verbatim record is not created.
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Ladies and gentlemen. I now come to the report of the Supervisory Board. Then the Executive Board will present its report to you. This will be followed by the general debate. After that, we will take the votes.
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At the beginning of my report, I would like to take this opportunity to once again express our special gratitude and appreciation to the Executive Board, the management, all employees of Porsche AG, and the employees of its affiliated companies on behalf of the entire Supervisory Board.
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We faced numerous difficult challenges in the 2024 financial year. The year was characterized by major geopolitical tensions, increasing macroeconomic uncertainties, and weak market development for us in the important Chinese market.
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The board of directors, the management, and all employees contributed significantly to the company's success with their commitment, passion, and sense of responsibility.
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I would also like to thank you, dear shareholders, for your loyalty and support in 2024 on behalf of the Supervisory Board. Without you all, this company would not be what it is.
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With the largest model campaign in the company's history, four out of six model series have been comprehensively revised. This means we are offering our customers the youngest product portfolio in years.
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With the newly developed all-electric Porsche Macan and the second generation of the all-electric Porsche Taycan, we have brought exciting vehicles onto the market.
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To mark the 50th anniversary of the Turbo, we have also launched an exclusive anniversary model of the iconic Porsche 911 Turbo sports car.
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The 911 Turbo 50 Years follows the original myth of the 911 with a fascinating symbiosis of outstanding performance and exclusive design elements.
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In the 2024 financial year, the Supervisory Board once again performed the duties incumbent on it in accordance with the law, the articles of association, and the rules of procedure, and dealt intensively with the situation and prospects of Porsche AG. The Supervisory Board monitored the Executive Board and its management of the business and regularly advised it on all key issues, always taking into account the recommendations and suggestions of the German corporate governance code.
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I regularly maintained close and trustful contact with the Management Board, in particular with the Chairman of the Executive Board, and discussed issues of strategy, planning, and business development with him.
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The Chairman of the Executive Board informed me immediately of important events that were of key significance for the assessment of the situation and development, as well as for the management of the company. Like the entire Board, I was also closely involved in the strategic considerations and decision-making processes of the Management Board.
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In addition to the reports from the Chairman of the Executive Board, I received regular reports from the Chief Financial Officer and the Chief Sales Officer, as well as reports from other Executive Board areas as required.
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The Supervisory Board held six meetings in the 2024 financial year.
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Overall, the attendance rate at the plenary meetings was a pleasing 94%.
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Only one participant was unable to attend one of the meetings.
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At its meetings, the Supervisory Board dealt in particular with the corporate strategy, the product range, and vehicle projects, the sales situation and the Chinese sales market, the supplier situation, and the topic of vehicle software in detail and comprehensively. In December 2024, the Supervisory Board and the Management Board jointly issued the annual declaration of compliance with the recommendations of the German Corporate Governance Code. A declaration of compliance and a compliment are permanently available on the company's website.
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The presidential committee met six times in the reporting year. The audit committee met four times
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and the nomination committee once.
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The related party committee and the mediation committee did not have to be convened in 2024. The presidential committee mainly dealt with the preparation of the topics to be discussed by the Supervisory Board, long-term succession planning, and Management Board remuneration.
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The audit committee dealt with financial reporting, the audit of the financial statements, the reports on risk management, compliance and auditing, as well as investment management. A detailed presentation of the topics discussed at the meetings of the Supervisory Board and its committees can be found in the report of the Supervisory Board on pages 66 to 69 of the annual report. I will then move on to the audit of the annual and consolidated financial statements.
The auditor EY audited the annual financial statements, the consolidated financial statements, and the combined management report, including the non-financial statement for Porsche AG and the group for the 2024 financial year, and issued a non-qualified audit opinion. The Supervisory Board examined the documents, including the audit reports by Ernst & Young, and concurred with the result of the audit by the auditor. The annual financial statements are thus adopted. The Supervisory Board also commissioned Ernst & Young to conduct an external review of the content of the non-financial statement 2024.
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The Supervisory Board had no objections following its independent review of the non-financial statement 2024 based on Ernst & Young's findings. The Supervisory Board also decided to prepare the remuneration report for the 2024 financial year together with the Management Board.
In addition to the statutory audit of completeness, Ernst & Young also audited the content of the remuneration report and issued an unqualified audit opinion. Ernst & Young also examined the report on relationships with affiliated companies prepared by the Management Board. The Supervisory Board also examined this report and declared that based on the final results of its examination, it had no objections to the declaration made by the Management Board at the end of the dependent company report. There have been no personal changes on the Supervisory Board since the end of the last Annual General Meeting. The Deputy Chairwoman of the Supervisory Board, Ms. Giordana Bugazzi, resigned from office as per the 31st of May. Dear Ms. Bugazzi, on behalf of the entire Supervisory Board, thank you very much for your commitment. In February, the Supervisory Board initiated a long-planned change to the Management Board.
On February 26, Dr. Jochen Breckner succeeded Mr. Lutz Meschke as Head of Finance and IT, and Mr. Matthias Becker succeeded Mr. Detlev von Platen as Head of Sales and Marketing. Last week, the Supervisory Board continued the generational change planned in the long-term Management Board. On August 19, 2025, Ms. Vera Schallweg will take over the Human Resources and Social Affairs department from Mr. Andreas Haffner, and Mr. Joachim Scharnagl will take over the Procurement department from Ms. Barbara Frenkel.
I would like to thank the Supervisory Board members that leave us on behalf of the whole Supervisory Board. I would like to thank you for your great commitment and your many years of successful work for Porsche AG. You have accompanied and supported the positive development of Porsche AG. On the 1st of July, Dr. Michael Steiner will also take on the role of Deputy Chairman of the Executive Board as a first. He has been the Board Member for Research and Development since 2016. In this context, he is handing over the management of group development in the Volkswagen Group. Ladies and gentlemen, so much for the work of the Supervisory Board in the past financial year 2024. The current financial year 2025 will once again be challenging. It will continue to be shaped by global trade conflicts and macroeconomic headwinds. We are all called upon to find strategic answers and implement them successfully. Porsche sports cars must make people's hearts beat faster all over the world, and returns must improve significantly again.
Our Chairman of the Executive Board, Dr. Oliver Blume will now explain this in more detail in his report on the past financial year, the current situation, and the outlook for the current financial year. Dr. Blume, please.
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Thank you very much, dear Dr. Porsche.
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And warm welcome from me too, dear shareholders. Thank you for joining us. There is no substitute, as you just heard in our introductory movie. There is nothing comparable. This is Porsche. This is our claim, and it has been that for over 75 years. I can promise you one thing: nothing will change about that, because Porsche is investing resolutely in the future, in new products, in software, and in measures that will strengthen us over the long term. This way, these measures will make our company even more robust.
These are challenging times, but we're using them to further develop Porsche in a targeted manner, to recalibrate it, to rescale our product planning, but also our company itself.
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Now you see us here in a new lineup. Dr. Jochen Breckner in February took over the responsibility of Board Member for Finance and IT, and Matthias Becker for Sales and Marketing. In mid-August, we will have further changes. Vera Schallweg will succeed Andreas Haffner as Board Member for Human Resources, Social Affairs, and Joachim Scharnagl will take over responsibility for Procurement from Barbara Frenkel. As of July 1, Michael Steiner will take on an additional role. Our Chief R&D Officer will also become Deputy Chairman of the Executive Board.
After three years in that dual role as head of development for the Volkswagen Group, he will once again focus 100% on Porsche.
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Now the world around us has also changed, faster and more comprehensively than ever before. Above all, not in a way that we had expected. Already last year, we were facing massive headwinds, and now we are experiencing a fierce storm. We are positioning ourselves to weather the storm. The overall economic and geopolitical situation is highly dynamic and very volatile, and more difficult to calculate than ever before. Also, the ramp-up of electromobility has slowed considerably. Our market in China has literally collapsed. In addition, trade conflicts and unstable supply chains are driving up costs. We have increasing regional regulation and high expenditure on flexible drivetypes, and products are undergoing transformation.
In addition, U.S. import tariffs are now weighing in on our business. Thus, the same way as the uncertainty has how to, this tariff issue will continue. Now, of course, we will also have to do our homework, reduce costs, work even harder on quality, further develop our product strategy, reduce complexity, development, and production. We need to further optimize our work in these markets and also make our processes more efficient. Now, we can rely on a very solid foundation, on strong products, and an almost completely renewed portfolio. On a valuable brand with a global appeal, on a loyal customer base around the globe, and on a financial robustness that we have built ourselves over years. 2024 was the biggest year of product launches ever at Porsche. We completely renewed four of our six model series and brought them to the markets.
Now, if you include the Cayenne at the end of 2023, it was actually five in total. The current product portfolio is thus probably the most attractive and youngest we ever had at Porsche. We're receiving strong feedback from our global markets, as well as from the national and international trade media. Highly emotional combustion engines, superior hybrid vehicles, and extremely powerful electric vehicles. With these three powertrains, we fulfill our customers' wishes, always with the aim of offering them maximum driving pleasure and sophistication. This is also reflected in our motorsport activities. 2024 was one of the most successful years in Porsche's history. We locked up overall endurance titles in the WEC and the American IMSA series, as well as the driver's world championship in Formula E, all of which speaks for itself. Porsche is motorsport, and motorsport is Porsche, and this inspires every one of our products.
We delivered just shy of 311,000 vehicles in 2024, and this was only slightly below the previous year, despite the significant decline in China. Although, as usual, the new models were only introduced gradually, with the exception of China, we achieved record figures in all markets. That shows we can react well and flexibly to fluctuations. Now, we once again increased the proportion of customization and have successfully positioned our new products on the market with higher prices. That means once again we've made more revenue per vehicle, and it is an expression of our strategy to put value over volume. The value always goes over numbers. As a result, group sales revenue remained roughly stable at a good EUR 40 billion. The group operating result on the other hand fell to around EUR 5.6 billion.
Here we are feeling the effects of a challenging environment, which had a massive impact on our margin. The comprehensive renewal of our product portfolio, the tense market situation in China, and globally delayed ramp-up of electromobility, as well as disruptions in the supply network and the financial consequences were felt. We were able to partially compensate for this, resulting in a group operating return on sales of 14.1%. In terms of net cash flow, we were able to reach the level of our record year 2023. Thus, we met our adjusted forecast for 2024 in all areas and in all respects. It is quite clear to us. You expect more from Porsche, of course. You do, and we do too. We have high ambitions over the long term, and we are sticking to them. At the same time, I would like to emphasize one thing.
Under such difficult conditions, the 2024 result was an exceptionally strong performance by the entire Porsche team. In my view, it is even stronger than the one achieved in the many successful years before, when the environment was a lot more stable. Dear shareholders, of course, we also want you to participate in this result once again. We are proposing to the Annual General Meeting today that a total of EUR 2.1 billion be paid out as dividend. That equals EUR 2.30 per ordinary share and EUR 2.31 per share. It is the same as we had in the Porsche record year for 2023, despite significantly higher expenditures. Now, let's take a look at the current year. There is no question that the first quarter was weak, as we had expected and as we had announced.
We delivered just short of 71,500 units, which is 8% less than in the first quarter of 2024. Once again, we did experience a significant drop in China. Once again, we were at least able to compensate for this to some extent in other regions, and that speaks for our well-balanced sales structure. Group sales revenue amounted to EUR 8.9 billion. The group operating result was EUR 762 million. The group operating return on sales thus was 8.6%. The ongoing economic and political challenges had a massive impact on the first quarter, and Porsche cannot escape this. We are countering this with all our strength. This costs extensive financial resources and places an additional burden on our earnings. For 2025, we are planning around EUR 1.3 billion in extraordinary expenses. Good for our product portfolio, for software and battery activities, and for adjustments to our organization.
Around EUR 200 million have already been spent on quite clear and specific measures in the first quarter. We are accepting this additional burden because we are convinced it is right and it is important. What's more, it is absolutely necessary because we are setting now the course for the future so that Porsche remains robust and highly profitable. However, these measures will naturally dampen the figures for the time being. We adjusted our forecast for the current year at the end of April, and we now expect the group sales revenue anywhere between EUR 37 billion-EUR 38 billion and a group operating return on sales between 6.5%-8.5%. This will include the effects of the U.S. import tariffs for April to May, and not yet due to the pending decision situation, of course. It is nothing to be debated or discussed here either.
We at Porsche are not used to this, and you are not used to this from Porsche. This, by the way, holds equally true for our share price. We will not be satisfied by it, which means we have a clear plan, we are acting on it, and we are not wasting any time. All the measures listed form the basis for leading our company to return a corridor of between 15%-17% in the midterm. All this in a difficult environment with concretely calculated and scheduled measures. We rely on our proven and successful Porsche strategy. Last year, we developed it further extensively because only a strategy that is regularly and pragmatically adapted to changes will be successful over the long term. Particularly when you look at our product strategy, which has been adjusted in all segments.
Now, electromobility remains for us the technology of the future, and we want to lead it to success over the long term. Yet our current product already showed that way. Porsche has set standards in electromobility at an early stage when you look at design and the drive characteristics. We've inspired many tens of thousands of customers worldwide and thrilled them with the product. After a strong startup phase, it has now become clear that we were a step ahead of market developments. Comprehensive and above all, sustainable ramp-up in electromobility has not yet materialized. The transition phase is probably going to be much longer than initially thought. We will continue to take a balanced approach between ICEs, hybrids, and electric sports cars, which means our electrification strategy is consistently pursued, and we still are expanding our range of ICE engines and hybrid models with additional models.
At the same time, we're strengthening our brand core. At the auto show in Shanghai, we showcased the new 911 Spirit 70, a new limited small series from our design heritage range. This way, we're reviving our icon, which is bringing back the legendary style of the 1970s. Further top derivatives of the 911 is something that our fans can look forward to, and I can reveal one thing to you. We are once again raising the bar in the sports car segment substantially higher. Now, for the four-door sports cars, we are extending the phase of parallel drivetrains. Cayenne and Panamera, for example, will continue to come well into the 2030s with combustion and hybrid vehicle types to be offered and developed. In the SUV segment, we're examining a new model series.
It could come to the market by the end of the decade, also with the combustion and hybrid drive. At the same time, the Porsche electric family will continue to grow as planned. An important component to our balanced portfolio is, above all, the Cayenne, coming with all three drive types. The fourth generation fully electric is already in the starting blocks, completely redeveloped and redesigned. This Cayenne will once again be a true sports car that sets standards in its segment, just like the Taycan and the Macan have done before it. Over the midterm, our customers can also look forward to a fully electric sports car in the 718 segment, even more dynamic, even more powerful, with pure driving experience. Of course, this has an impact on the battery electric vehicle ramp-up overall.
It had been our goal to deliver over 80% fully electric sports cars by 2030. It was one of the most ambitious goals in the entire industry. Now, our product strategy would still allow for this, but in view of market developments, it's no longer realistic, which means our battery electric vehicle ramp-up will adapt flexibly to demand and to market developments. I can promise you one thing: we will remain ambitious. In 2024, 27% of the vehicles delivered were already electrified, which means they were either fully electric vehicles or plug-in hybrids. The pure battery electric vehicle share was around 13%. In the first quarter of 2025, already 38% were electrified, and of these, almost 26% were purely electric, which underlines the success, above all, of the new Macan.
Now, nevertheless, the ramp-up is slower than originally planned, and that is why we have once again carefully analyzed our own battery activities and reacted consistently and decisively. Now, as you know, we had planned to expand our production capacities for high-performance battery cells with Cellforce Group. Now, we will no longer be pursuing these plans independently because the expected sales volumes have been significantly reduced. No matter which drive is preferred at Porsche, we will fulfill the dreams and wishes of our customers, no matter how individual they may be. Because the possibilities of designing a vehicle according to your own ideas are already almost endless today. It starts with individual options from the Porsche Exclusive Manufaktur, extending all the way through to completely individual one-off pieces from the Sonderwunsch range.
We offer more than 1,000 options from the Exclusive Manufacturer across all model ranges, and these are already ordered extensively. The vast majority of all customers chooses at least one such option. Thus, we were able to double the average revenue per vehicle with these options between 2019 and 2023. In 2024, it went up by an additional 7%. We will therefore significantly expand capacity for this over the coming years. The same holds true for our Sonderwunsch range, all around personalized, unique pieces, co-designed by our customers and designers, and professionally implemented by Porsche. We will also expand our Sonderwunsch experience worldwide because this is a bespoke, tailor-made experience, for example, also for the delivery of a vehicle. This much I already can promise and reveal to you. The historic Plant 1 in Zuffenhausen will come to play a central role in this.
In this way, we will further strengthen the Porsche brand essence. Dear shareholders, let's now turn to the changes within the company. Still holds true. Unit numbers are not scale for us. Value goes to volume, especially in the current market environment. This also means that we need to make our company even more robust, further reduce the break-even point, and become even less dependent on volume scenarios. This is what we're doing because we have started to rescale our cost structure to around 250,000 vehicles per year. Look, let's not make a mistake about this. We are talking about the cost structure here and not about any sales targets. By 2029, we want to cut around 1,900 jobs in the indirect area of Porsche AG, taking advantage here of demographic trends and natural fluctuation, and we'll be only hiring very restrictively.
What's more, we are implementing socially responsible measures, and we're allowing fixed-term employment contracts to expire, which will reduce the workforce by an additional 2,000 jobs. In addition, management and the works council will also negotiate an additional structural package in the second half of the year. Also in China, we're tackling the challenges to our organization with determination because there in China, demand has changed structurally. There's a strong electric trend in the volume segment, but there's no luxury market for fully electric vehicles yet. Whether or not this will develop in the foreseeable future is at least questionable. One thing is very clear that already 20 years, we have been delighting our Chinese customers with our sports cars and above all with our unique tradition.
At the Shanghai Auto Show, we put the Porsche heritage into the spotlight, and we did so with great success because the response to our unusual exhibition stand was enormous. Also in China, we're sticking to our value over volume strategy. Once again, value beats volume. That is why we want to make the dealer network more efficient. We're continuing to invest in busy locations with a high demand, but where we no longer see profit over the long term, we are reducing the size of our network. We did anticipate a reduction of around a third by 2027, which means around 100 instead of the current 150 sales outlets nationwide in China. To put it in a nutshell, dear shareholders, 2024, we achieved, thanks to our product range, a convincing market result.
This gives us a strong basis for the ongoing development of our company. In a challenging and completely changed environment, we are investing resolutely in the future. We are using the year 2025 to further develop Porsche in a targeted manner, to recalibrate it, to rescale both our product planning, but also our company itself. This will cost us additional financial resources in the short term, and we are happy and willing to accept that because we are convinced that over the long term, we are setting an important course to further sharpen our brand, to make our products even more individual, even more exclusive, and even more desirable, and to make our company even more profitable. There is no substitute. There is no substitute. There is nothing that compares to Porsche, and that is Porsche, and it will stay that way. Thank you very much for your attention.
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Thank you, Dr. Blume.
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Ladies and gentlemen. The agenda today also includes the resolution on the approval of the conclusion of domination and profit transfer agreements between Porsche AG and two subsidiaries.
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Our Chief Financial Officer, Dr. Breckner, will explain this. Dr. Breckner, please.
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Thank you very much, Dr. Porsche. Ladies and gentlemen, under item seven of today's agenda, the Executive Board and Supervisory Board proposed that you approve the conclusion of a control agreement and a profit transfer agreement, each between Porsche AG and two of its subsidiaries, namely the Porsche 100 Vermögensverwaltungs GmbH and Porsche 101 Vermögensverwaltung GmbH. The German Stock Corporation Act requires the Executive Board to explain the control agreements and profit transfer agreements orally to the General Meeting.
I would like to briefly summarize the main reasons for the intended conclusion of the control agreements and profit transfer agreements and summarize also their main content. The main reason for signing the control agreements and profit transfer agreements is for tax purposes. The control agreements create the conditions for establishing a VAT tax group between Porsche AG and its subsidiaries. The conclusion of the profit transfer agreements establishes an income tax group, each between Porsche AG and its subsidiaries. The VAT tax group results in significant administrative legal simplifications, as all deliveries and services between Porsche AG and its subsidiaries are no longer subject to VAT. The income tax group allows tax gains and losses of Porsche AG and its subsidiaries to be offset, which may lead to a reduction in the overall tax burden.
The conclusion of two separate control and profit transfer agreements instead of one combined control and profit transfer agreement is beneficial in this case. This enables Porsche AG to terminate the control agreement and thus the VAT tax group without having to terminate the profit transfer agreement as well and thus the income tax group. The content of the control agreements and profit transfer agreements are identical and comply with the generally accepted standards in terms of contractual rights and obligations, the terms of agreements and determination options. Essentially, the respective subsidiary places its management under the control of Porsche AG, and Porsche AG is entitled to issue instructions. In addition, Porsche AG assumes any losses incurred by the respective subsidiary. On the other hand, the respective subsidiary is obliged to transfer all of its profits to Porsche AG.
As Porsche AG directly holds 100% of the shares in the subsidiaries, no compensation or severance payments are to be paid to external shareholders. For the same reason, it was not necessary to have the agreements reviewed by an independent auditor. Further information on the agreements can be found in the joint reports of the Executive Board of Porsche AG and the management of the respective subsidiaries. The reports and the drafts of the control agreements and profit transfer agreements have been available on the company's website since the convening of today's General Meeting. Thank you very much for your attention.
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Thank you, Dr. Breckner.
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I would like to say goodbye to those of you who followed the broadcast on the Internet.
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Thank you very much for your interest in Porsche AG. All shareholders and their representatives can follow of this meting via the Investor Portal . To log in there, you will need the access data that you received with your registration confirmation.
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The voting results will be available on the Internet after the end of the meeting.