"The next step in focus will be Porsche's IPO. Porsche has maintained relative independence and provided technical support to the Volkswagen Group and expects to successfully complete the listing in the fourth quarter. Porsche said.
On March 18, Porsche released its financial results for the 2021 fiscal year. In FY2021, Porsche hit record highs in both operating income and sales profit, and Porsche Worldwide once again consolidated its position as "one of the world's most profitable car manufacturers" with outstanding results.
Mr. Obermou, Chairman of the Porsche Global Executive Board (left) and Mr. Maxig, Vice Chairman and member of the Porsche Global Executive Board, responsible for Finance & Information Technology (right) publishes porsche business revenue data for FY2021.
Facing the future, Porsche pure electric model Taycan sales have exceeded the sports car 911, Porsche particularly emphasized its largest single market China and will further accelerate the electrification process around the product and car ecology, including pure electric 718, Porsche car owners charging privilege network, etc., and constantly enrich the choice of electric travel for Chinese customers.
Profit reached 5.3 billion euros And sold more than 300,000 units
Over the past year, Porsche has reached record highs in both operating income and sales profit.
In 2021, Porsche delivered a total of 301,915 new cars 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).
In terms of financial figures, Porsche operated at EUR 33.1 billion, an increase of EUR 4.4 billion from the previous fiscal year and an increase of 15% year-on-year (operating income of EUR 28.7 billion in FY2020). 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).
Oliver Blume, Chairman of Porsche's Global Executive Board, said: "Our outstanding performance is based on bold, innovative and forward-looking decisions. 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 the Executive Board of Porsche Worldwide and responsible for Finance and Information Technology, believes that in addition to an attractive product portfolio, a healthy cost structure is also the basis for Porsche's excellent 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 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). "This indicator is a strong proof of Porsche's profitability," Says Maxig.
The company's good development is also due to the ambitious "2025 Profitability Plan", which aims to continuously 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 added.
The current tense world situation requires restraint and prudence.
"We deeply regret the current international situation, and we have been paying attention to the innocent people in the midst of the Crisis in Ukraine." Obermu said: "Porsche is concerned and concerned about the armed conflict in the Ukrainian region. We hope that both sides will cease hostilities and resolve the dispute diplomatically. The safety of people's lives and the dignity of humanity are essential. ”
To help people affected by the conflict in Ukraine, Porsche Worldwide has donated 1 million euros. A task force of experts is conducting an ongoing assessment of the impact on Porsche's business activities. The supply chain at Porsche factories has been affected to some extent, which means that in some cases production cannot be carried out as scheduled.
"We will face serious political and economic challenges in the coming months, but we will remain committed to our long-standing strategic goal of achieving a return on sales of at least 15% per annum over the long term," Maxig emphasized. Of course, the ultimate extent to which this goal is achieved depends on many external challenges that are not controlled by human beings. ”
Maxig admits that because some tier 1 suppliers are in Ukraine. The Ukraine crisis did have a certain impact on Porsche, because we have some Tier 1 suppliers right in Ukraine. "The new global situation now makes us think about expanding our sourcing sources globally, which is our strategic direction for the future," he said. ”
Within Porsche, the company creates all the favourable conditions for a successful business model.
"Porsche is in a great position, whether strategically, operationally or financially, according to Maxig. Therefore, we are confident in the future. ”
Taycan delivered more than 911 Porsche Electric, digital re-acceleration
In 2021, the delivery volume of the Porsche Taycan more than doubled: 41,296 deliveries worldwide.
It is worth mentioning that the Taycan even surpassed the Porsche benchmark sports car 911, although the latter also set a new record with 38,464 units delivered.
"The Taycan is an authentic Porsche sports car that inspires passion for a wide range of groups – including our existing customers, new customers, automotive experts and industry media. We will also launch another pure electric sports car to accelerate the electrification process: in the mid-1920s, we planned to present the mid-engined 718 sports car in pure electric form. ”
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%."
It is understood that in order to achieve this goal, Porsche is working with partners to invest in the construction of high-end charging stations, as well as Porsche's own charging infrastructure. In addition, Porsche has invested heavily in core technologies such as battery systems and battery module production. The newly formed Cellforce company is focusing on the development and production of high-performance batteries, with volume production expected in 2024.
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. Porsche's North American market grew significantly, with more than 70,000 units delivered in the U.S., up 22% year-over-year. The European market is also growing positively: in Germany alone, Porsche's new car deliveries increased by 9 percent to almost 29,000 units.
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.
Obermu said: "We believe that the luxury car market has a huge space for growth in China in the future, which is also a great opportunity for Porsche to reach more consumer groups. In particular, as the electrification strategy advances, we are reaching out to more new customers. So we believe that through our current rich product lineup and new electric models, as well as the joint efforts of Porsche China CEO Dr. Yan Boyu and his team, Porsche will continue to achieve long-term stable growth in the Chinese market. ”
The Chinese market will play an important role in driving or enabling Porsche's global digital transformation.
"We decided to set up an independent digital company in China, and we have also opened a new R&D branch in China as a strong complement to our existing digital business in China," MaxG said. We hope to be able to get closer to Chinese consumers and better understand their needs, especially in terms of digitalization and intelligent interconnection. ”
Porsche expects to invest 15 billion euros globally by 2025 in new technologies and digitalization, some of which will go directly to China.
"China will become a very important innovation experiment base for us and will also have a huge impact on Porsche's investment in innovation, technology and digitalization," said Obermu. ”
Porsche is about to fly solo: it is expected to be available in the fourth quarter
"The Volkswagen Group will continue to play the synergy between its brands, and the Group has now achieved the goal of an overall reduction in indirect costs by 10% ahead of schedule (originally planned to be achieved in 2025), and the next step will focus on Porsche's IPO. Porsche has maintained relative independence and provided technical support to the Volkswagen Group and expects to successfully complete the listing in the fourth quarter. The group said.
It is worth mentioning that there have been rumors of Porsche flying alone for a long time, but it was not until the end of February this year that the "real hammer" was ushered in.
In this regard, Maxig welcomed this move and believes that this initiative can increase brand awareness and increase the freedom of enterprises. In addition, Maxig believes volkswagen and Porsche can still benefit from future collaboration.
The analysis believes that Porsche has always been one of the excellent assets of the Volkswagen Group, and its profitability far exceeds that of its peers.
Even in the past two years, car companies have been tested by the epidemic and supply chain, Porsche's operating profit in 2020 will still reach 4 billion euros, and the EBIT margin will be as high as 15.4%. In 2021, Porsche's operating profit will further increase to 5 billion euros, and the EBIT margin will be as high as 16.5%, surpassing Audi's 10.5% and Bentley's 13.7%.
In terms of Porsche's profitability, once it successfully IPOs, the expectations of the capital market should not be low, which will bring more transformation funds to the Volkswagen Group.
According to the initial plan previously disclosed by volkswagen group, Porsche's share capital will be divided into 50% preferred shares and 50% ordinary shares, and up to 25% preferred shares will be placed on the market at the time of the initial public offering. At the same time, Volkswagen stressed that the company's management and the supervisory board still need to sign the framework agreement, and there is still a distance from the final decision.
For this porsche to leave the parent company Volkswagen Group independent listing, industry analysis believes that the divestiture of Porsche's own brand is to be able to have better development, such as extending to the Volkswagen series and getting rid of the constraints of the target market. In addition, Porsche is also to better adapt to the era of new energy and intelligent vehicles.
As a world-renowned luxury brand, Porsche is the "profit cow" of the Volkswagen Group. Some institutions expect that if Porsche is finally listed independently, the valuation will be about 60 billion to 85 billion euros, which may become the largest IPO in the history of Germany and even Europe.
Che Yun Summary:
From the perspective of financial data, Porsche has always fulfilled its promise of high profitability. In recent years, Porsche's financial performance in the Chinese and global markets has been very stable, and the return on sales has remained at around 15%.
At the same time, Porsche, as a high-end automobile brand, is also following the trend of the times, including the trend of new energy vehicles. The launch of Porsche may be related to its own electrification strategy.
According to the plan, by 2024, Porsche plans to invest around 10 billion euros in hybridization, electrification and digitalization. Of these, 60 percent will be used for research and development of hybrid and electric vehicles; 30 percent will be used for investments in tangible assets related to electrification; and 10 percent will be used for the digitization of vehicles. At the same time, there is an additional expenditure of 5 billion euros for digital transformation and venture capital.
The Porsche plan to go public this time is actually to earn "ammunition" for its own transformation. At present, the era of automotive energy is changing, and for traditional car companies such as Porsche, a wider financing channel is needed to change the way of operation. At the same time, Porsche Motors also has other interests in listing, such as expanding influence and enlarging the value of assets.