FOLLOWING MONTHS OF SPECULATION, PORSCHE AG IS PREPARING FOR ITS INITIAL PUBLIC OFFERING (IPO)

The Supervisory Board of Volkswagen AG has decided to pursue an IPO of up to twenty-five percent of non-voting Preferred Shares of Porsche AG. These Preferred Shares are planned to be listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard). The planned IPO is targeted for the beginning of October and is expected to be completed by year end, subject to capital market conditions.

“We very much welcome the decision of the Volkswagen Supervisory Board in favour of an IPO of Porsche AG,” says Oliver Blume, Chairman of Porsche’s Executive Board. “This is a historic moment for the company. We believe an IPO would open up a new chapter for us, with increased independence as one of the world’s most successful sports car manufacturers.”

In preparation for the IPO, the share capital of Porsche AG was divided into fifty percent Preferred Shares and fifty percent Ordinary Shares. In the IPO itself, up to twenty-five percent of the Preferred Shares in Porsche AG would be listed to support a meaningful free float and help create a liquid aftermarket for Porsche AG shares.

The IPO will comprise public offerings in Germany, Austria, France, Italy, Spain and Switzerland, as well as private placements to institutional investors. “Porsche has established a strong financial track record, delivering compelling results,” says Lutz Meschke, Deputy Chairman of the Executive Board and the Board Member responsible for Porsche’s finance and IT programmes. “We are fully committed to continue our successful path and aim to benefit from a structural growth environment for our luxury vehicles. We believe Porsche is well positioned and will continue to focus on highquality and exclusive products, electromobility and sustainability. Therefore, I am optimistic that we can attract a very strong and well-diversified shareholder base with the proposed IPO.”

Porsche AG intends to target a dividend payout ratio of fifty percent of the Porsche Group’s IFRS consolidated profit (after tax) attributable to its shareholders in the mid-term. If all goes to plan, the domination agreement and profit and loss transfer agreement currently in place with Volkswagen AG will be terminated by the end of this year. At the same time, Volkswagen and Porsche have agreed to maintain their successful cooperation and plan to continue working on joint projects long into the future.

Acting as Joint Global Coordinators and Joint Bookrunners in connection with the proposed transaction are Bofa Securities, Citigroup, Goldman Sachs and J.P. Morgan. BNP Paribas, Deutsche Bank, Morgan Stanley, Santander, Barclays, Société Générale, Unicredit are acting as Joint Bookrunners. Commerzbank, Crédit Agricole, LBBW and Mizuho are acting as Colead Managers. For further information, visit investorrelations.porsche.com/en.

PUBLIC OFFERINGS IN GERMANY, AUSTRIA, FRANCE, ITALY, SPAIN AND SWITZERLAND