In 2021, in a complex market environment, Porsche guaranteed a level of profitability.
On March 18, Porsche's 2022 press conference was held online. At the press conference, Porsche released the financial report data of the past year, including operating income, sales profit, return on sales, net cash flow and other indicators. At the same time, Porsche went all out to enter the electrification fast lane and increased the offensive of electrification products.
Operating income and sales profit reached a new high in 2021
Despite multiple challenges such as the COVID-19 pandemic, chip supply shortages and rising raw material prices, Porsche's global revenue and profit in FY2021 reached record highs.
In 2021, operating income climbed to EUR 33.1 billion, an increase of EUR 4.4 billion from the 2020 fiscal year (EUR 28.7 billion), an increase of 15% year-on-year. Profit from sales of EUR 5.3 billion increased by EUR 1.1 billion, or 27%, from the previous fiscal year (EUR 4.2 billion). As a result, Porsche's return on sales reached 16.0 percent, higher than the long-term strategic target of 15 percent.
The rise in profitability depends on the rise in sales. In 2021, Porsche deliveries of new vehicles were 301915 units, up 11% from 272162 in FY2020. Among them, the Macan became the best-selling model, with a total of 88,362 new cars delivered worldwide, an increase of 13% year-on-year. Porsche's first all-electric sports car, the Taycan, more than doubled year-on-year to 41,296 vehicles in 2021.
In terms of market segments, Porsche's deliveries have increased in all sales regions around the world, and China has once again become the largest single market. The Delivery Volume in the Chinese Market was nearly 96,000 units, an increase of 8% year-on-year; the Porsche North American market increased significantly, with deliveries in the United States exceeding 70,000 units, an increase of 22% year-on-year; the European market also achieved growth, taking Germany as an example, Porsche's new car deliveries increased by 9% year-on-year to nearly 29,000 units.
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 Board of Executive Directors of Porsche Worldwide and responsible for finance and information technology, believes that in addition to the product lineup, a healthy cost structure is also the basis for Porsche's good performance. "Porsche's 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 the 2021 fiscal year, Porsche's global net cash flow increased by 67% year-on-year, an increase of 1.5 billion euros compared to 2020 to 3.7 billion euros. Net liquidity in the automotive business grew to €5 billion, an increase of €2 billion over the previous fiscal year 2020.
The growth of cash flow and net liquidity in the automotive business proves that Porsche's "2025 Profit Plan" is effective, and Porsche's innovation of the entire company's processes and the development of new business concepts have further improved profitability and reduced the break-even point. More importantly, it provides more financial support for Porsche's next transformation strategy.
Maintain the principle of high profitability and accelerate electrification with all efforts
According to Porsche's plan, it will become carbon neutral by 2030 and unswervingly promote its electrification, digitalization and sustainability strategy.
Porsche revealed at the press conference that in 2021, about one in every four new cars delivered by Porsche worldwide will be pure electric or hybrid models, compared with nearly 40% in Europe.
"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," Obomu revealed that by 2030, the proportion of pure electric models in Porsche's new cars is planned to reach more than 80%. In addition, Porsche plans to launch the new generation of the 718 in pure electric form in the mid-1920s to accelerate the electrification process.
To achieve its goal of electrification, Porsche has allocated 15 billion euros for electric mobility and digital transformation by 2025.
In terms of charging station construction, Porsche is expanding its charging infrastructure network and laying out Porsche's own charging infrastructure in Europe. It is reported that the first outlets have been confirmed in Germany, Austria and Switzerland.
Porsche has also invested heavily in core technology areas such as battery systems and battery module production. Among them, the newly established Cellforce company has begun to develop and produce high-performance batteries, which is expected to achieve mass production in 2024; Porsche Werkzeugbau will produce battery modules, the factory is located in Slovakia, and construction is scheduled to start in the middle of next year.
For the Largest Single Market, the Chinese Market, Porsche plans to continue to accelerate electrification around product and vehicle ecology.
According to the plan, two derivative models of the Taycan, the Taycan GTS and the Taycan Cross Turismo, will debut at the 2022 Beijing Auto Show and start pre-sale. 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 revealed that it is accelerating the construction of a customer-friendly car ecology through fast and safe supercharger technology, and constantly expanding a reliable and convenient charging network.
Porsche also admitted that the supply chain of Porsche factories has been affected by the situation in Russia and Ukraine, which may lead to production in some cases not being able to proceed as scheduled. Still, Porsche says it will stick to its long-standing strategic goal of achieving a return on sales of at least 15 percent per annum.
At the same time, Porsche will drive transformation in line with Strategy 2030, continue to strengthen the principles of sustainability and customer orientation, and maintain high profitability.