Porsche Summary for 2019: Annual Report 2020

Live streaming of Porsche's annual press conference

Porsche's annual press conference was broadcast to the world by live streaming on Friday, March 20, 2020.

Like last year, the countdown started a few days ago for livestreaming.

Currently, there is also a case of coronavirus infection prevention, and it seems that it was very simple and short compared to last year's conference because it seems that the preparation was done with the minimum number of human resources and the delivery was done on the day. I think.

It all started with a story about the coronavirus from Porsche AG CEO Oliver Blume.

About closing the factory for 2 weeksI think that what he wanted to convey most was that "Porsche thinks that protecting people (employees and their families) is the number one."

2019 Porsche Annual Report

Now, let's take a quick look at the contents of the 2020 Annual Press Conference.

• Set new records in fiscal year 2019 in terms of unit sales, sales, and operating income (before extraordinary gains and losses).

• Sales in 2019 are 280,800 units, an increase of 10% from the previous year.

• Sales increased by 11% to 28.5 billion euros, and operating profit (before extraordinary profit / loss) increased by 3% to 4.4 billion euros. The operating profit margin (before extraordinary profit / loss) is 15.4%.

• The number of employees has increased by 10% to 35,429.

• Many new models will be announced in 2019. The most important model among them is Porsche's first fully electric vehicle, the Taycan.

This is emphasized in the video as "Taikan is 100% Electric, 100% Sporty, 100% Porsche" ^ ^

• According to Blume, success in 2019 isn't just for that year, Porsche's main goal is "value-creating growth."

• Over the past five years, it has achieved more than 60%. This has set the prerequisites for fulfilling corporate responsibility in the economic, environmental and social fields.

Next, by Lutz Meschke, Vice Chairman of the Board of Directors for Finance and IT at Porsche AG:

• Although sales and operating profit increased in 2019, the increase in fixed costs due to Porsche's growth, investment in electrification and digitization, and the impact of currencies had a negative impact on business performance.

• However, with an operating margin (before extraordinary gain / loss) of 15.4% and a return on investment of 21.2%, we were able to exceed our strategic targets.

• Due to the diesel problem, extraordinary gains and losses in the second quarter of 2019 amounted to 500 million euros.

• As a result, Porsche AG's operating profit after extraordinary profit and loss was 3.86 billion euros, and the operating profit margin after extraordinary profit and loss remained at 13.5%.

• Sales of Cayenne and Macan have increased significantly, with Cayenne selling 92,055 units, up 29% year-on-year, and Macan selling 99,944 units, up 16% year-on-year.

• Growth in Germany and the European market as a whole increased by 15%, with delivery of 31,618 units in Germany and 88,975 units in Europe as a whole.

• In China, 8% increased from the previous year to 86,752 units, and in the United States, 8% increased from the previous year to 61,568 units.

Consistently sustainable

• With the introduction of Taycan, about 2,000 new employees were hired.

• The Zuffenhausen factory where Taycan is produced is carbon-neutral (= carbon dioxide is not emitted because the amount of carbon dioxide emitted and the amount of carbon dioxide absorbed are the same).

• It changed to carbon neutral from the beginning of 2020. Energy efficient and electricity comes from renewable sources.

• Porsche's own thermoelectric supply plant, which operates on biogas generated from residues and waste, produces heat.

Taycan Cross Turismo & New Macan Full Electric Vehicle

• By 2024 Porsche will invest around € 10 billion in hybrid, electrification and digitization of vehicles to strengthen the e-mobility sector.

• Next up is the Taycan Cross Turismo.

• The new generation Macan will also be electrified, making it Porsche's second full-battery-powered model.

• By 2025, half of the sales will be sold as an electric drive model and a plug-in hybrid model.

About Taycan

• Before the world premiere in September 2019, Taycan had already received about 30,000 inquiries, and more than 15,000 customers signed purchase contracts.

• Given the uncertainties associated with coronavirus, CFO Meshke said he will face a difficult economic and political environment over the next few months. However, in the future, by taking measures to improve efficiency and developing new business fields with high profitability, despite making a large investment, a high profit target (operating profit margin 15%) Aims to continue to achieve.

• According to Blume, we are confident that the Taycan, Porsche 911, 718 and Cayenne Coupe will be able to generate high demand in 2020 as well.

That's the brief 2020 Porsche Annual Press Conference (annual report on Porsche in 2019).

In 2020, the impact of the current coronavirus is so great that I think that it will be a difficult time not only for Porsche but also for various industries.

Regarding Porsche, I think that it depends on how long the current situation will continue, but I think that it will be more difficult to secure operating income of 15% in 2020, but for the time being By the way, the annual report was very positive.

Below you can see a summary video of the Annual Press Conference. It is a video of 6:37.

The annual press conference of Porsche AG: Highlights

Source:
◆ (Official) Porsche's result after an electrifying year: innovative, sustainable, successful　
◆ (Official) Porsche's achievements after a shocking year-innovative, sustainable and successful