In 2021, Porsche's global operating income was 33.1 billion euros, sales profit was 5.3 billion euros, the return on sales was 16%, and the net cash flow of the automotive sector was 3.7 billion euros, which was stable and rising in the dual impact of the epidemic and chip shortages. Prepare your business for go-to-market research.
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. New vehicle deliveries hit a new record of 301,915 units, up 11% year-over-year, with all major sales markets contributing positively. The Volkswagen Group decided to study the possibility of listing Porsche AG on the stock exchange.
【2021 Performance】
In FY21, Porsche China's operating income climbed to EUR 33.1 billion, an increase of EUR 4.4 billion from FY2020 (EUR 28.7 billion), an increase of 15% year-on-year. Profit from sales increased by EUR 1.1 billion from the previous fiscal year (EUR 4.2 billion) to EUR 5.3 billion, an increase of 27 percent. Return on sales reached 16.0%, above the long-term strategic target of 15%. (FY2020: 14.6%.) Net cash flow in the automotive sector grew strongly, rising 67 percent year-on-year to €3.7 billion in fiscal 2021. Net liquidity in the automotive business grew to €5 billion, up €2 billion from the previous fiscal year.
New vehicle deliveries hit a new record of 301,915 units (FY2020: 272,162 units), an increase of 11% year-on-year, with all major sales markets contributing positively. China was the world's largest single market for Porsche, with 95,671 new car deliveries, up 8% year-on-year. The Macan became the best-selling model, delivering 88,362 new vehicles worldwide, up 13% year-over-year. Porsche's first all-electric sports car, the Taycan, is selling well worldwide, with new car deliveries more than doubling in 2021 compared to 2020 to 41,296 units.
【2021 Corporate Strategy】
Porsche Worldwide is on the fast track to electrification and ramping up its electrification product offensive.
In the mid-1920s, the 718 series was planned to be fully electrified. The new generation of the 718, despite being electrically driven, will continue to use common components, which means that the future 718 and 911 series will still be produced on the zuvenhausen two-door sports car assembly line. Porsche also plans to launch a hybrid model of the 911, focusing on a very dynamic way of driving, similar to a hybrid car in the race.
Porsche Worldwide continues to drive future-oriented projects and investments.
Porsche has allocated 15 billion euros for electric mobility and digital transformation by 2025. Expansion of the charging infrastructure network: Porsche's own charging infrastructure in Europe; the first sites have been confirmed in Germany, Austria and Switzerland. Porsche has invested in Cellforce to develop a new high-performance battery, which is scheduled to go into production in 2024. Invested in Porsche Werkzeugbau for the production of battery modules, the plant is located in Slovakia and construction is scheduled to begin in the middle of next year. Porsche has invested in Rimac since 2018. In November 2021, the Bugatti Rimac joint venture was approved, with the Rimac Group holding 55% of the joint venture and Porsche holding 45% of the shares. Bugatti and Rimac cars will continue to operate as independent brands and manufacturers.
【2022 Strategic Outlook】
Despite the tense political and economic situation, Porsche is committed to its strategic goal of achieving a return on sales of at least 15% per annum in the long term. Of course, the ultimate extent to which this goal is achieved depends on many external challenges that are not controlled by human beings.
Porsche has set up relevant working groups to continuously study the development of the situation and introduce countermeasures. At present, the first measures to protect revenue have been implemented, hoping to ensure that the company continues to meet the requirements of high yields. Given the current global landscape, any predictions for 2022 deliveries and business data are premature. For Porsche, sales are not the primary goal. More importantly, we are confident that we will stimulate our customers' enthusiasm for sports cars with desirable products while striving for maximum profitability and efficiency.
Porsche will drive transformation in line with Strategy 2030, continue to strengthen the principles of sustainability and customer orientation, and maintain high profitability.
【Porsche Listing Study】
The Volkswagen Group decided to study the possibility of listing Porsche AG on the stock exchange. The Executive Board of Porsche AG welcomed the decision. This also highlights Porsche's very successful development.
For Porsche, this move can enhance brand image and value, as well as increase the freedom of the company. Volkswagen AG will also benefit from the listing of Porsche AG. The IPO will give the Volkswagen Group additional flexibility, which will help to further accelerate the transformation. Porsche and Volkswagen can still benefit from future collaboration.
In principle, the capital market values homogeneous and more focused business units, and the value of large companies is often underestimated, because the individual value of their business units, or the value of sub-brands, has never been reflected 1:1 in the capital markets. The higher the company's rating, the greater the space for financing options and the scope of operations. Alliances with tech companies, for example, are helping to increase our speed and agility, and such alliances are becoming increasingly important.
The decision on the listing of Porsche AG will depend entirely on the Volkswagen Group. The Volkswagen Group announced that it will provide information on the progress of the relevant research by the end of the summer. Prior to this, Porsche was unable to provide any information on further developments.