In FY2021, Porsche Worldwide once again consolidated its position as "one of the most profitable car manufacturers in the world" with outstanding results. The Stuttgart-based sports car manufacturer has hit record highs in both operating income and sales profit. Operating income climbed to EUR 33.1 billion in 2021, 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 the Executive Board of Porsche Worldwide, said: "Our excellent 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. ”
Guarantee profitability in a complex market environment
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.
"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 year over the long term," CFO Maxger emphasized. "The task force has taken initial steps to safeguard revenue and wants to ensure that the company continues to meet high-yield requirements. Of course, the ultimate extent to which this goal is achieved depends on many external challenges that are not controlled by human beings. Within Porsche, the company has created all the favourable conditions for a successful business model: "Porsche is in an excellent position, both strategically, operationally and financially. We are therefore confident about the future and welcome the Volkswagen Group's study of the possibility of an initial public offering (IPO) of Porsche AG. This initiative can increase brand awareness and increase business freedom. At the same time, Volkswagen and Porsche can still benefit from future collaboration. ”
Accelerate the electrification process across the board
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). Deliveries of the Taycan more than doubled: 41,296 customers worldwide received their first pure electric Porsche. The Taycan even surpassed the Porsche benchmark sports car 911, although the latter also set a new record with 38,464 units. "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. ”
Last year, the proportion of all new Porsche cars delivered in Europe was close to 40%, including plug-in hybrid models 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 achieve this ambitious 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 also saw very positive growth: 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 ecology through fast and safe supercharging technology, continuously expanding the reliable and convenient charging network, and relying on local research and development strength to provide customers with intimate and intelligent services.