Introduction to Porsche Lizenz- und Handelsgesellschaft mbh & Co. KG

1. Introduction to Porsche Lizenz- und Handelsgesellschaft mbh & Co. KG Porsche Acceleration IV Costa Rica, June 15th, 2004

2. Agenda • Introduction to PORSCHE Lizenz- und Handelsgesellschaft mbH & Co. KG • Company Structure • Objectives • PORSCHE DESIGN vs. PORSCHE DESIGN Driver's Selection Strategy • Brand Strategy • Marketing Strategy • Product • Price • Distribution/POS • Communication • Product Highlights MY05

3. Company Structure • PORSCHE DESIGN and Selection have been merged to form one company of which PAG holds 65% and the Porsche family 35% of the stakes F.A. H.P. 50% 50% PD PV GmbH PORSCHE AG PORSCHE Verwaltungs GmbH 35% 65% PORSCHE Lizenz- und Handels- Gesellschaft mbH & Co. KG (PLHG) 35% 65% PD GmbH, Zell am See (Design Studio) PDoA Inc. 100% 100%

4.  Reduce consumer confusion about the different brands  Streamline brand management outside the automotive sector  Maintain the brand values  Strengthen the Porsche brand presentation  Generate synergy effects in product and sales management  Realize sales and profit potentials Objectives

5. DRAFT Brand Strategy • Three brands will be transformed into one brand with a sub-brand

6. Brand Strategy • PORSCHE DESIGN will be positioned into the luxury market, whereas Driver's Selection will act as a sub-brand in the bridge market Luxury Louis Vuitton, Dior, Hermès, Armani, Cartier, Prada, Patek Philippe, Donna Karan, IWC Premium Mont Blanc, Baume&Mercier, Ralph Lauren, Hugo Boss, Calvin Klein Bridge Hugo, Emporio Armani, DKNY, ck Mass Esprit, Eddie Bauer, Swatch, Zara, GAP Discount H&M, Marks&Spencer,

7. PORSCHE DESIGN Brand Strategy • There is a lack of genuine mens’ brands with a credible technical background in the luxury segment multi segment focus technical functional fashion emotion single segment focus

8. PORSCHE DESIGN Brand Strategy • Porsche Design is a truly masculine brand with a high aspirational factor modern/sexy feminine masculine traditional

9.  Masculine with high emotional aspiration  Modern, yet classical  Technical functionality  True design competence  Credibility for a broad range of products Brand Strategy • PORSCHE DESIGN is able to hold a unique position in the market: Perfection Passion Performance Multi-segment luxury brand

10. PORSCHE DESIGN Driver's Selection Brand Strategy • PORSCHE DESIGN Driver's Selection owns a modern lifestyle, high-end position within the competitors’ field of car merchandising brands (price) high end modern/ lifestyle traditional (price) low end

11.  Mainly car-related products for Porsche owners, their family and fans  Technical functionality, but also modern, maybe even trendy lifestyle products  Sportiness  Credibility for a unique product range related to the Porsche car PORSCHE DESIGN Driver's Selection Brand Strategy • PORSCHE DESIGN Driver's Selection is able to own a unique position in the market: multi-segment bridge brand

12.  Product  Price  Distribution  Communication Marketing Strategy • PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection

13. Product Strategy • There are exclusive product groups for PORSCHE DESIGN and PORSCHE DESIGN Driver's Selection, but there is also a product overlap • Clothing • Watches • Luggage/Leather • Writing instruments • Golf equipment • Sunglasses • Lifestyle • Sporting goods • Fragrance • Electronic equipment (mobile phones, etc.) • Pocket knives • Shoes • Giveaways • Calendars • Kid's products • Model cars

14. Product Strategy • Differentiation of products: watchesPORSCHE Design watches will have mainly mechanical movements, while the PORSCHE DESIGN Driver’s Selection watches will have quartz movements

15. Product Strategy • Differentiation of products: clothingPorsche Design will be a rather clean and minimal collection in comparison to the sporty and casual look of Driver’s Selection

16.  Product  Price  Distribution  Communication Marketing Strategy • PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection

17. Price Strategy • PORSCHE DESIGN Driver's Selection will mainly offer products up to € 500 MSRP MSRP price range [EUR] Giveaways –– 1 – 20 Calendars/Books –– 25 – 40 Watches 975 – 66,000 350 – 500 Sunglasses 149 – 300+ 100 – 200 Lifestyle –– 10 – 300 Luggage 200 – 2.000+ 15 – 1.400 Small leather goods 50 – 500+ 35 – 400 Model cars –– 20 – 350 Kid's products –– 20 – 600 Writing instruments 60 – 500+ 20 – 100 Sporting goods 250 – 2.500+ 20 – 550 Clothing –– 10 – 800

18.  Product  Price  Distribution  Communication Marketing Strategy • PORSCHE DESIGN versus PORSCHE DESIGN Driver's Selection

19. Distribution Strategy • Strict separation of distribution channels for PORSCHE DESIGN and PORSCHE DESIGN Driver's Selection • Exclusive retail stores • Franchise stores • Shop-in-shops at up-market department stores • Up-market specialist stores • Porsche dealers, if requirements are met • Porsche dealers worldwide • Online shops • B2B key accounts (e.g. Lufthansa)

20. Frankfurt Munich Salzburg Los Angeles Taiwan/Taipeh Hong Kong Dubai PORSCHE DESIGN Stores Franchise Shops Shop-in-Shop PORSCHE DESIGN Distribution Strategy • Current POS for PORSCHE DESIGN

21. Planned PORSCHE DESIGN Stores: Europe USA Hamburg, Berlin, Düsseldorf, Frankfurt, Vienna, Zürich, Milan, Paris, London, Barcelona, Moscow New York, San Francisco, Los Angeles, Chicago, Boston Planned Franchise Stores: Europe Asia Stockholm, Lyon, Bordeaux, Warsaw, Göteborg, Manchester, Glasgow, Dublin, Rome Hong Kong, Singapore, Shanghai, Seoul, Kuala Lumpur, Tokyo  30 PORSCHE DESIGN Stores, 25 Franchise Stores, 50 Shop-in-Shops PORSCHE DESIGN Distribution Strategy • Future retail expansion of PORSCHE DESIGN PORSCHE DESIGN Stores Franchise Shops Shop-in-Shop

22.  Selective retail presence ensures pure, eye-catching branding PORSCHE DESIGN Distribution Strategy • Retail presentation is crucial for the success of a lifestyle luxury brand: the success of Louis Vuitton and Mont Blanc is built on an exclusive, selective POS-strategy

23. Distribution Strategy • Both PORSCHE DESIGN and PORSCHE DESIGN Driver’s Selection are in the process of developing new shop systems • Matteo Thun (architect) will create the PORSCHE DESIGN retail presence in own shops, shop-in-shops and franchises • First shop opening planned for autumn 2004 in Munich, Milan, Hamburg and Paris • Professional store designers will create a modular, flexible shop-in-shop system, that meets with the Porsche dealer requirements • First prototype to be set up beginning MY 05

24. PORSCHE DESIGN Driver's Selection Distribution Strategy Shop-in-shop concept 5m² (Draft)

25. PORSCHE DESIGN Driver's SelectionDistribution Strategy Shop-in-shop concept 5m² (Draft)

26. PORSCHE DESIGN Driver's SelectionDistribution Strategy Shop-in-shop concept 10m² (Draft)

27. PORSCHE DESIGN Driver's SelectionDistribution Strategy Shop-in-shop concept 20m² (Draft)

28. PORSCHE DESIGN Driver's SelectionDistribution Strategy • Shop-in-shop concept adapts perfectly to the Porsche architecture (Draft)

29. PORSCHE DESIGN Driver's SelectionDistribution Strategy Next steps: • Develop first draft for an easy-to-handle shop-in-shop system • Set up a prototype at a PORSCHE dealership to improve and fine-tune the system • Prepare a sensitive roll-out of the new shop-in-shop system considering the dealer investments made in the markets • Focus on main markets • The Tequipment and Exclusive fitting lounge will remain unchanged (updates for new models are planned, missing display elements e.g. a plasma screen stand will be added)

30. PORSCHE DESIGN Driver's SelectionSituation Latinamerica March

31. PORSCHE DESIGN Driver's SelectionSituation Latinamerica Next steps: • Make basic range of Selection available at PoS (e.g. T-shirts, Caps, Pins, Pens, etc.) • Try out kids’ articles (remote control cars, kid’s car, dingy boat) • Use Selection articles in Marketing events like Golf tournaments (golf bag, putter, Porsche golf balls …), Driving events (sell model cars, T-shirts, key chains)