– Growth of operating return on sales from 16 to 18 percent
Porsche aims to achieve an operating return of more than 20 percent in the long term
Oliver Blume: We achieved the strongest results in the history of “Porsche” despite the exceptional circumstances, thanks to the dedication of our team
During the fiscal year 2022, Porsche achieved four new records, as the group’s sales revenue reached 37.6 billion euros in 2022, equivalent to a growth of 13.6 percent (2021: 33.1 billion euros), while the group’s operating profit amounted to 6.8 billion euros. billion euros, exceeding the figure of the previous year by 1.5 billion euros, an increase of 27.4 percent.
Deliveries of new cars and net cash flow last year reached an all-time high, while the Group’s operating return on sales rose from 16 to 18 percent.
This year, the German sports car manufacturer seeks to strengthen the implementation of its luxury car strategy, as it launched its ambitious “Road to 20” program in order to achieve long-term profitability goals.
The Chairman of the Executive Board of the company, Oliver Blume, expressed his happiness at achieving these results, saying: “Under these exceptional circumstances, we achieved the strongest results in the history of (Porsche), by a large margin from previous results, thanks to the dedication and great performance of our team,” adding, “We were also able to Introducing a new set of distinctive products to our customers in 2022.
The strong demand continued during the past year, as Porsche AG was able to deliver 309,884 thousand new cars to customers, an increase of 2.6 percent compared to 2021 (301,915 thousand cars), despite global challenges that included the Ukrainian war, the Covid pandemic and supply chain disruptions. In fiscal 2022, net cash flow from car sales increased from €3.7 billion to €3.9 billion.
Commenting on these strong results, Vice Chairman of the Executive Board and Member of the Executive Board for Finance and Information Technology, Lutz Mischke, said: “Our success factors are the improvement in prices, our distinctive model range, increased car sales, the positive impact of exchange rates, and our cost-cutting strategy.”
Enhance flexibility
While the Porsche team continues to set ambitious goals for the future, in 2023 the company began implementing its ambitious “Road to 20” program, through which it aims to achieve an operating return of more than 20 percent for the group in the long term.
Commenting on the program, Mischke said, “We seek to enhance Porsche’s flexibility and consolidate our brand’s position through this programme.” .
Road to 20 is an extension of the successful Profitability Program 2025, which has contributed to enhancing Porsche’s resilience in facing crises over the past years.
The sports car company ushered in a new era in its history on September 29, 2022, with the largest public offering in Europe by market value.
“Our strategy can now become more focused and faster to implement, thanks to the independence we gained after this IPO with more organizational freedom,” said Mischke.
We will work to enhance our capabilities in key areas such as software and battery technologies.”
Porsche is focusing on production of limited edition models and expanding its bespoke program, the Sonderwunsch, as it continues to strengthen its luxury car strategy.
According to the “Luxury & Premium” report issued by the leading consulting firm “Brand Finance”, Porsche is the most valuable luxury brand in the world.
“Our company combines premium products and a personalized bespoke experience with responsibility in the society in which it operates,” said Oliver Blume. Sonderwunsch) in the future, as we want to further meet the requirements and desires of our customers, and strive to exceed their expectations.”
ambitious strategy
At the same time, Porsche is looking to continue implementing its ambitious electric mobility strategy, as the company introduced the fully electric Macan, which will be available to customers in 2024, and the fully electric 718 is scheduled to be launched in the middle of the decade, so that it will transform in the medium term into an electric car. Only fully, and the fully electric Cayenne will follow.
This fourth generation of the SUV will confirm Porsche’s goal that by 2030 more than 80 percent of its new cars will be fully electric.
Porsche is also planning to expand its range of cars by offering an all-electric SUV in addition to the Cayenne.
This car will be built on the SSP Sport platform developed by Porsche.
On this, Blume said: “(Porsche) is consolidating its leading position in the luxury sports car sector with the launch of this car, as we expect to achieve great profits in this sector, especially in China and the United States.”
In 2023, the Cayenne will undergo a wide range of comprehensive updates, as the updates that will be made to the third generation of the Cayenne include the provision of 3 additional hybrid engines developed with an increase in the distance the car travels before needing to charge.
Thanks to the new “chassis”, the car will have many new capabilities that balance the on-road performance that Porsche is famous for, off-road performance and comfort levels during long trips.
Porsche has also set itself ambitious goals in terms of sustainability. According to its strategy, the company is working to achieve carbon neutrality in the value chain of its cars by 2030, and this goal also includes achieving carbon neutrality during the vehicle use phase of future fully electric models (based on an assumed total mileage of 200,000 km per car).
In 2022, Porsche also established a pilot synthetic fuel plant with its partners in Chile, and production has started since last December. Blume believes that Porsche has demonstrated its ability to produce synthetic fuels on a commercial scale through this project.
Information Technology Management
The Porsche IT team is set to receive a major boost in 2023 with the joining of Sajjad Khan assuming the responsibility of representing the new Automotive IT department on the Executive Board. Commenting on his appointment, Blumeh said: “We are pleased to have the seasoned expert, Sajjad Khan, join Porsche, where we will work together to efficiently implement the automotive IT strategy while focusing on our customers.”
In 2022, Porsche takes another step towards digitization, bringing together the expertise of the Porsche Digital, MHP and Porsche IT teams to form the flexible Digital Family unit.
Commenting on this merger, Mischke said: “These departments are cooperating more closely together at the present time, which enables us to accelerate the digital transformation process with greater focus,” explaining that “(Porsche) is now considered the company of choice for information technology experts. At Porsche, software specialists can work with global technology giants to design software for the world’s most famous cars.”
operating return
Regarding Porsche AG’s medium and long-term goals, Mischke said: “We expect to achieve an operating return on sales for the fiscal year 2023 of about 17 to 19 percent, if the economic challenges do not increase significantly.”
This financial guidance is based on group sales revenues of around 40 to 42 billion euros.
“We aim to achieve an operating return on sales of more than 20 percent in the long term,” Mischke said.
In 2023, Porsche celebrates two milestones: the 75th anniversary of the launch of Porsche sports cars and the 60th anniversary of the launch of the 911.
And in June 2023, the sports car company will return to participate in the “Le Mans 24 Hours” endurance race, where Porsche will compete in the centenary of the classic race in order to win the new “Porsche 963”.
The Executive Board proposes a distribution of 1.01 euros per preferred shareSince the successful IPO, Porsche shares have made significant positive progress. Only 81 days after they started trading, they were integrated into the German stock index DAX through an express entry procedure.
The share price increased from the offering price of €82.5 to €114 (as of February 28, 2023), equating to a total market capitalization of €108 billion.
In fiscal 2022, earnings per ordinary share were €5.43 and earnings per preferred share were €5.44.
The Executive Board proposes to the General Assembly of the company at the annual meeting a dividend of 911 million euros for the fiscal year 2022.
Adding the dividend of €5 million for the preferred shares, the total amount of the dividend amounts to €916 million, or the equivalent of €1 per ordinary share and €1.01 per preferred share.
