Third Porsche Shareholders' Meeting: Accelerating business restructuring and stabilizing dividends

Posted: Posted:May 24, 2025

3rd Porsche Shareholders' Meeting

On May 21, 2025, Porsche AG's third annual general meeting was held.

Let's take a look at what CEO Oliver Blume said in a statement to shareholders about the company's "aligned product and business plans."

First, here's a word from Oliver:

The world has changed
We are facing a severe storm
But we are making every effort to combat them.
Investing decisively in the future
Even in difficult times, we remain sharply focused on Porsche development
This will require more resources in the short term but will make us more profitable in the long term.
We accept this challenge
Have a plan and take action
And I'm not going to waste a moment.

Now let's take a look at what was announced at the shareholders meeting:

Porsche AG is responding to the changed framework with a comprehensive strategic realignment plan that includes a review of its product and business plans.
In light of the significantly longer global transition to electric mobility, Porsche is strategically realigning its battery business and expanding its product portfolio by adding models with internal combustion engines and plug-in hybrid drive systems.
In addition, Porsche has embarked on a major cost-cutting and restructuring program.
Plans to cut around 3,900 jobs by 2029
Furthermore, management and the union are expected to negotiate a restructuring package later this year.
The aim is to further increase Porsche's efficiency in the medium and long term.
The restructuring of the battery business and significant investments related to new product and business plans will result in special charges totaling €1.3 billion in 2025
This will have a significant impact on Porsche's bottom line, but the company is open to it.
We need to ensure that we can continue to maintain strong, high profitability in the future.

Continue long-term planned change in management

The long-term planned transition of the Porsche AG board of directors will begin in February 2025.
Jochen Breckner (48) will succeed Lutz Meschke (59) as Director of Finance and IT.

Matthias Becker (54) has taken over as head of sales and marketing from Detlev von Platen (61).

Michael Steiner (60), who has served as Director of Research and Development since 2016, will become Vice Chairman of the Board of Management of Porsche AG on July 1, 2025.
As a result, Steiner will step down from his leadership of Group Development at the Volkswagen Group.
Effective August 19, 2025, Vera Schalwi (45) will take over responsibility for Human Resources and Social Affairs from Andreas Haffner (59).
At the same time, Joachim Scharnagl (49) will take over as head of the procurement department from Barbara Frenkel (62).

Strong performance in 2024

In the financial year 2024, Porsche AG achieved solid results despite all the challenges:
- Group sales of €40.1 billion
- Group operating profit falls to €5.6 billion
- Consolidated operating profit margin: 14.1%
- Automotive net cash flow of €3.7 billion, roughly the same level as in 2023, the highest ever
- Earnings per ordinary share: €3.94
- Earnings per preferred share: 3.95 euros
In these challenging circumstances, 2024 was an exceptionally strong performance by the entire Porsche team.
The results are even stronger than previous successful years, when the environment was much more stable.
Porsche has proven that the company remains highly profitable and financially strong even in difficult times in 2024

Sales volume is expected to remain strong in FY2024
Global sales were more balanced than last year, with a total of 310,718 vehicles delivered
Record sales achieved in four of the five regions (Europe, Germany, North America, and overseas/emerging markets)
However, total sales volume was slightly down compared to last year, mainly due to continuing difficult market conditions in China.
The best-selling model was the Cayenne with 102,889 units sold, ahead of the Macan (82,795 units) and 911 (50,941 units).

From December 2023 onwards, the company will completely revamp its product portfolio by updating five of its six model lines.
This has laid the foundation for future success
Porsche will continue to use a range of well-balanced drive systems
Customers will be able to choose between internal combustion engine, hybrid and fully electric drive in every segment until the 2030s
We hope you will also look forward to other higher grades of the 911.
The only thing we can say is that Porsche will "raise the bar again in the sports car segment."

In April, Porsche AG revised its 2025 earnings forecast, mainly due to special factors, and now expects the following figures:
- Consolidated sales of €37-38 billion in 2025
- Consolidated operating profit margin: 6.5-8.5%
- Automotive division net cash flow margin (net cash flow) is 4-6%
- EBITDA margin for the automotive division is 16.5-18.51 TP1T
- The share of BEVs in the automotive sector is 20-221 TP1T

Commenting on the newly appointed management team, Chairman of the Supervisory Board, Dr. Wolfgang Porsche, said: "The automotive industry remains in a tough situation, and Porsche is no exception. At the same time, our brand still has great appeal. We are all being called upon to overcome the challenges ahead."

Despite last year's global challenges, the Board of Management and the Supervisory Board plan to propose to the Annual General Meeting a dividend of around €2.1 billion for 2024
This equates to 2.30 euros per ordinary share and 2.31 euros per preferred share.
Porsche plans to continue distributing approximately 501 TPP1T of its consolidated net profit after tax to shareholders.

Results of the Porsche AG Shareholders' Meeting

At the third Annual General Meeting of Porsche AG since its IPO, all proposals submitted by the Board of Management and the Supervisory Board were approved.
Despite the challenging macroeconomic situation, the dividend for 2024 will remain the same as the previous year at around €2.1 billion (equivalent to €2.30 per ordinary share and €2.31 per preferred share).
The dividend yield of preferred stocks based on the previous day's closing price is 4.98%
Dividend payable on May 26, 2025
In addition, the activities of the members of the Board of Management and Supervisory Board in office until 2024 have been formally approved.

The above is the announcement made at the general shareholders' meeting and its results.

There seemed to be some talk going around saying, "What's up with Oliver Blume serving as CEO of both VW and Porsche? He should just choose one or the other," but there was no mention of Oliver in this announcement of the long-term, planned change in management.

If Oliver had to choose, I'd like him to stay with Porsche. (←I have an impure reason for this, because being the CEO of Porsche is cool and fits my image.)

One thing to look forward to is Oliver's comment that "Porsche will once again raise the bar in the sports car segment."

Excited ^^

Here's the disclaimer that was included with the announcement:

Disclaimer:

This press release contains forward-looking statements and information that reflect Dr. Ing. hc F. Porsche AG's current views about future events. These statements are subject to many risks, uncertainties, and assumptions. materializes or if the assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results may be materially different from those Porsche AG expresses or implies by such statements. Forward-looking statements in this presentation are based solely on the circumstances at the date of publication. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

Source:
◆(Official)Porsche AG accelerates rescaling of the company and keeps dividend stable
◆(Official)Porsche AG keeps dividend stable

Rika (911supercars.com)

I'm Rika, the author of this article. Since I got my hands on a Porsche 911, I've been completely hooked on Porsches and I can't stop loving them, so I started this blog. My favorite cars are the 911 Carrera (2/991), 911 Carrera Cabriolet & 911 Carrera T (1/992), GT3 (1/997) and 718 Cayman GT4 RS.

911Supercars in the article

-Porsche: Porsche
-Management information, main specifications, production volume, price list

カート好きの還暦 says:

2025年5月24日 at 7:28 PM

The world has not changed, but rather we have failed to change it.
They were trying to attract customers and dominate with electrification without paying the price for their own dieselgate. It was too easy.

What worries me is that the solutions to structural reform are being given out piecemeal. They are also vague. If structural reform is not completed in a short period of time, talented personnel will lose motivation and quit.

Reply
- Rika (911supercars.com) says:
  
  2025年5月24日 at 7:37 PM
  
  60th birthday who likes carts
  Please don't deny Oliver's statement from the beginning (lol). "The world has changed" from Porsche's point of view ^^!!
  
  Just between you and me, I love Porsche and I know that I look at the company through quite a (positive) lens, but I don't really like these talks at shareholder meetings because it makes it clear that they are trying too hard to justify Porsche's current situation.
  
  But still, Porsche has no choice but to tell a positive story in a setting like this... so it turns out that "the world has changed" (laughs).
  
  Reply

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