On March 18, Porsche released its financial results for the 2021 fiscal year. In 2021, Porsche's operating income climbed to €33.1 billion, an increase of €4.4 billion from the previous fiscal year and an increase of 15% year-on-year (operating income in FY2020 was €28.7 billion). Profit from sales of €5.3 billion increased by €1.1 billion (up 27 percent) from the previous fiscal year. As a result, Porsche achieved a return on sales of 16.0% in FY2021 (14.6% in the previous fiscal year).
The strategic goal is to achieve a return on sales of at least 15% per annum over the long term
Oliver Blume, Chairman of Porsche's Global Executive Board, said: "The automotive industry is undergoing perhaps the greatest transformation in history, and we have developed a strategic approach early on and are steadily moving forward in our operations. All achievements are due to teamwork. Lutz Meschke, Vice Chairman and Member of Porsche's Global Executive Board and responsible for Finance and Information Technology, believes that in addition to an attractive product portfolio, a healthy cost structure is the basis for Porsche's outstanding performance. "Our business data reflects the company's superior profitability," he said. It proves that even in a difficult market environment such as chip supply shortages, we have achieved value-creating growth and demonstrated the robustness of a successful business model. ”
In 2021, Porsche, like all luxury car companies, was affected by the shortage of chip supply, and Mercedes-Benz even suspended the delivery of models equipped with V8 engines. Porsche is also inevitably affected, but thanks to the Profit Plan 2025, Porsche continues to reap the benefits through innovation and new business models. "Our profitability program has been very effective due to the high motivation of our employees. Porsche further improves profitability and reduces the break-even point. This gives us the ability to make strategic investments in the company's future in a tight economic situation. We are steadfastly advancing our investments in electrification, digitalization and sustainability. I am confident that Porsche will become even stronger after the test of the current global crisis. Maxig said. In FY2021, Porsche's global net cash flow increased by EUR 1.5 billion to EUR 3.7 billion (previous fiscal year: EUR 2.2 billion).
Regarding the many uncertainties in the coming months of 2022, Maxig said Porsche will remain committed to its long-standing strategic goal of achieving a return on sales of at least 15% per annum over the long term. It is reported that Porsche has taken initial measures to protect revenue, hoping to ensure that it can continue to meet the high yield requirements.
Regarding the Volkswagen Group's initial public offering (IPO) of Porsche AG, Maxig welcomed the move and believed that this move could increase brand awareness and increase corporate freedom. In addition, Maxig believes volkswagen and Porsche can still benefit from future collaboration.
Porsche Home Charging Solutions (Image: Porsche)
The electrification process has accelerated again, and more than 80% of new cars will be pure electric models in 2030
In 2021, Porsche delivered a total of 301,915 new vehicles to customers worldwide. This marks the first time that Porsche's new car deliveries exceeded the 300,000-unit mark, a record high (272,162 deliveries last year). The best-selling models were the Macan (88,362 units) and the Cayenne (83,071 units). Deliveries of the Taycan more than doubled: 41,296 customers worldwide received their first pure electric Porsche. The Taycan deliveries even surpassed the Porsche Benchmark Sports Car 911, which set a new record with 38,464 units.
In 2021, the proportion of all new Porsche vehicles delivered in Europe will already be close to 40%, including plug-in hybrid and pure electric models. Porsche has announced plans to become carbon neutral by 2030. "It is expected that by 2025, sales of electric models will account for half of Porsche's overall sales, including pure electric and plug-in hybrid models," Obomus revealed. "By 2030, the proportion of pure electric vehicles in new vehicles is planned to reach more than 80%."
To support this goal, Porsche is investing in high-end charging stations and its own charging infrastructure, and has invested heavily in core technology areas such as battery systems and battery module production, with the newly formed Cellforce focusing on the development and production of high-performance batteries and is expected to be in series production by 2024.
China is once again Porsche's largest single market
In 2021, Porsche's deliveries increased in all sales locations around the world, with China once again becoming the largest single market. Nearly 96,000 units were delivered in the Chinese market, up 8% year-on-year.
In China, Porsche continues to accelerate the electrification process around the product and vehicle ecology, and continues to enrich the electric mobility life of Chinese customers. Two Taycan spin-offs, the Taycan GTS and the Taycan Cross Turismo, will debut in Asia at the 2022 Beijing International Auto Show and pre-orders will kick off. At that time, Porsche's lineup of new energy models in China will be expanded to 21 models. In addition to the increasing offensive of electrification products, Porsche China has been accelerating the construction of a customer-friendly car ecosystem through fast and safe supercharger technology, continuously expanding a reliable and convenient charging network, and relying on local R&D strength to provide services to customers.
In addition, Porsche's North American market grew significantly, with deliveries in the U.S. exceeding 70,000 units, up 22% year-over-year. The European market also saw very positive growth: in Germany alone, Porsche's new car deliveries increased by 9 percent to almost 29,000 units.