On March 18, Porsche, one of the world's most profitable car manufacturers, announced its 2021 earnings report and electrification process. According to the financial summary, Porsche AG's operating income climbed to 33.1 billion euros in 2021, an increase of 4.4 billion euros from the previous fiscal year, an increase of 15% year-on-year, and a sales profit of 5.3 billion euros, an increase of 1.1 billion euros (an increase of 27%) from the previous fiscal year, resulting in a 16% return on sales in the next fiscal year of 2021. At the same time, Porsche's new car deliveries in 2021 set a new record of 301915 units, an increase of 11% over the previous year.
Regarding the above financial situation, Porsche mentioned at the global 2022 annual press conference: Despite the tense political and economic situation, Porsche still adheres to the strategic goal of achieving a return on sales of at least 15% per year in the long run. At the same time, given the current global situation, any prediction of 2022 deliveries and business data is too early, for Porsche, sales is not the primary goal, but more importantly, to stimulate customers' enthusiasm for sports cars with products that people aspire to.
It should be noted that in 2021, Porsche not only has new car deliveries far ahead of other competitors in the ultra-luxury car market, but also the most profitable and valuable brand of the Volkswagen Group, but it cannot achieve financing value within the Volkswagen Group, and if it is independently listed, there will be more investors optimistic, Porsche Chief Financial Officer Maxig also said at the press conference: Welcome volkswagen group to study the possibility of Porsche AG's initial public offering (IPO) -
At present, due to the entry of 'new forces', the financial performance of the automotive industry in the stock market is very unreasonable, for example, Rivian sells less than 1,000 vehicles a year, but its market value ranks third in the industry. Tesla's sales are about 1/9 of volkswagen group's, but the market value is several times higher. Traditional car companies hold many very competitive brands and models, if these brands and models are not independent, the value in the capital market can not be reflected at all. Maybe after the pain, the Volkswagen Group will really let Porsche go public independently?
Returning to the earnings report itself, Porsche's global net cash flow increased by 1.5 billion euros to 3.7 billion euros in FY21 (compared with 2.2 billion euros in the previous fiscal year), Porsche CFO Myscop further explained: "Due to the high motivation of employees, our Erie plan has been effective, Porsche has further improved profit efficiency, reduced the break-even point, and still has the ability to make strategic investments in the company in a tight economic situation, such as unswervingly promoting electrification, Investments in digitalization and sustainability.
In fact, digitalization has injected many new differences into Porsche, such as in the development and production of Taycan, Porsche has fully used AR technology to accelerate the research and development process, efficiency and quality; in order to quickly respond to the needs of the Chinese market, Porsche (Shanghai) Digital Technology Co., Ltd., a wholly-owned subsidiary, launched a digital product Porsche search engine (Mini Program) for consumers to quickly find a car, online reservation to see the car, the intention to pay money, etc. to provide convenience.
Let's look at the sales volume of models and regional sales. China once again won the world's largest single market for Porsche, with new car deliveries reaching 95,671 units, an increase of 8% year-on-year, followed by the North American market, with deliveries of more than 70,000 units year-on-year, and the delivery of new cars in Germany was nearly 29,000 units, an increase of 9%; the Macan became the best-selling model, with a total of 88,362 new cars delivered worldwide, an increase of 13% year-on-year; and Porsche's first pure electric sports car, the Taycan, more than doubled the number of new car deliveries in 2021 compared with 2020. The number reached 41,296 units.
Considering that in 2021, all car companies are facing multiple challenges such as the new crown pneumonia epidemic, chip supply shortages and rising raw material prices, the net liquidity of Porsche's automotive business has increased to 5 billion euros, an increase of 2 billion euros over the previous fiscal year, which once again proves the real strength of Porsche's full chain cooperation and system strength in the face of complex market environments. When the new power brands have begun to tell the story of "system strength", Porsche has proved the value gap between them with practical actions.
In fact, Porsche's record operating income and profit in 2021 are also due to the active transformation of the accelerated electrification process around the product and vehicle ecology in recent years (in 2030, striving to achieve carbon neutrality in the entire value chain and the life cycle of new cars sold), which has played a decisive role in the successful adjustment of the sales structure that has been high in recent years.
Another noteworthy statistic here is that in 2021, about one in every four new cars delivered by Porsche Worldwide will be pure electric or soul-moving models, and the proportion in Europe will be 40%. In other words, Porsche's sales structure and sales quality optimization trend in 2021 are obvious, and the quality of operation is further improved. Moreover, Porsche has also announced at the press conference that the 718 series plans to electrify all of them – by 2025, half of Porsche's global deliveries are expected to be electrified models, including pure electric and hybrid; by 2030, the proportion of pure electric models in new car deliveries is expected to reach more than 80%.
In fact, with the Taycan GTS and Taycan Cross Turismo making their Asian debuts and pre-sale at the 2022 Beijing International Auto Show, Porsche's lineup of new energy models in China has expanded to 21 models.
Of course, in order to achieve these ambitious goals, Porsche is also actively promoting future-oriented projects and investments, such as Porsche has allocated 15 billion euros for electric mobility and digital transformation in 2025, including the expansion of the charging infrastructure network (the layout of Porsche's free charging infrastructure in Europe), investment in Cell for the development of new high-performance batteries, planning to start production in 2024, investment in Porsche Werkzeugbau produces battery modules (the plant is located in Slovakia and plans to start construction in the middle of next year) and invests in Rimac, in which Porsche holds a 45% stake and the Rimac Group holds a 55% stake in the joint venture (Bugatti and RiMac cars will continue to operate as independent brands and manufacturers).
The last thing that impressed me was that Porsche's digital transformation was on the one hand, in cooperation with the world's leading technology companies, and will also rely on internal R&D strengths: "Many emerging technologies initially originated in China and are gradually being applied to other markets around the world. As a result, China will become a very important innovation and experimental base for us, which will also have a huge impact on Porsche's investment in innovation, technology and digitalization. Obermu shared.
As a brand known worldwide for creating high-end sports cars, Porsche's initiative to embrace the boldness, innovation and forward-looking of the digital era may be an important reason why it will continue to attract young consumers to choose Porsche products in the next 10 years.
Ah Chuan said car
Through these financial data that seem to have nothing to do with ordinary consumers, it actually shows that the entire Porsche has brought added value to consumers in terms of brand value that other competitors cannot provide, and the electrification strategy and operation for 2025 and 2030 highlights Porsche's great determination to transform the new energy field. At the same time, after taking stock of Porsche's report card in 2021, it can be seen that the typical winner should be like this: it is not impatient, not anxious, and it is about taking steps.