Porsche Summary for 2020: Annual Report 2021

2020 Porsche Annual Report

Porsche's annual conference was held online on March 19, 2021 (Friday).

An annual conference held every Friday at this time of year.

It's already the third time since I fell in love with Porsche and became interested in seeing this annual conference.

It's really a year in no time.

Related article:
◆Porsche 2018 Summary: Annual Report 2019
◆Porsche Summary for 2019: Annual Report 2020

Now, let's take a look at the summary of Porsche in 2020 (contents from the annual conference).

Porsche's 2020 fiscal year sales record high

• Porsche AG sales in 2020 were 28.7 billion euros (28.5 billion euros in the previous year)
• Operating profit of 4.2 billion euros (3.9 billion euros in the previous year / 4.4 billion euros before extraordinary gains and losses)
• Operating profit margin is 14.6%
• More than 272,000 units delivered worldwide (3% less than the previous year)
• Profit before tax was € 4.4 billion, up from the previous year

Announcement of Oliver Blume, Chairman of the Board of Porsche AG

• 2020 was a good year for Porsche, despite the difficult situation. There are four reasons:
  • Attractive product range
  • Well-made electric models (convincing electric models)
  • Porsche brand innovative strength
  • The determination with which we approached our crisis management

• Porsche's first fully electric sports car, the Taycan, has sold more than 20,000 units, making it the most successful electric sports car in its class.
• Taycan has been named "world's most innovative car" and has won more than 50 awards worldwide.

• Porsche symbolizes strong and stable core business, sustainable action, social responsibility and innovative technology

Announcement of Mr. Lutz Meshke, Vice Chairman of Porsche AG Finance / IT Board of Directors

• We are proud of our achievements in achieving the operating margin of 14.6%, which is within the strategic target range, despite a number of difficulties.

• It was a very quickly established cost and liquidity management system that made it possible to achieve these records in difficult global situations.
• In this crisis, Porsche's top priority was liquidity
• We needed to reduce all "non-necessary costs"
• Porsche never lost sight of the direction of its long-term strategy
• And I didn't cut down on the future at all.

• Porsche is constantly driving transformation, digitalization, and electrification at full speed. You lose competitiveness as soon as you relax in these areas
• Cost and liquidity management system provides benchmarks. Porsche's protection of Porsche's business allows it to move forward at full speed once the current crisis is over.

Profitability program

• With these things in mind, Porsche has further refined its ambitious Profitability Program 2025.

• Porsche's new goal is to achieve a cumulative total of € 10 billion by 2025 and € 3 billion each year thereafter.
• The most important thing about a profitability program is that it's not just a cost-saving program, it's an innovative program, intelligently optimizing all processes and coming up with new business ideas.

• The number of employees remains constant at about 36,000, and an employment security agreement has been signed to guarantee the employment of core personnel until 2030.
• Porsche does not cut employment or cut off its subsidiaries, but instead invests in its employees and the future

• This has been successful, and Porsche was able to further increase efficiency and lower the break-even point.
• By doing so, we hope to achieve the strategic target of operating profit margin of 15% in 2021.

• As in the previous year, Porsche shared what it got with its employees, and its bonus in 2020 was € 7,850.

CO in 2030₂Aiming to achieve neutral

• Faced with ongoing climate change, Porsche has set another ambitious goal
• What is very important in Porsche's Strategy 2030 is economic, ecological and social sustainability.

• Porsche has launched a comprehensive decarbonization program with a clear target of achieving carbon neutrality throughout the value chain by 2030.

• Since 2021, it has become carbon-neutral at major bases such as Zuffenhausen, Weissach and Leipzig.

• Allotted more than 1 billion euros for decarbonization over the next 10 years
• Porsche has already come to this first milestone, which was announced in March 2021 by the Taikan Cross Turismo. This model is the first car to be carbon neutral throughout all production phases.

• One-third of Porsche sold in Europe in 2020 were electric vehicles (fully electric & hybrid)
• The electrification rate in the world is 17%
• In 2025, half of all new Porsche cars will be equipped with electric motors, and in 2030, more than the new 80% will be electrified.

• For Porsche, socially responsible behavior is also carried out under sustainable control
• A program called "Porsche helps" was launched during a pandemic, and countless employees devoted their time and money to charity.
• Porsche increased its donation to food banks by € 5 million and doubled its donation to mitigate the effects of the pandemic

Strong sales performance

• In terms of unit sales, the number delivered to customers was generally stable, benefiting from Porsche's global position.
• The best-selling Cayenne sold 92,860 units, an increase of 1% from the previous year.
• 20,015 Taycans were sold (2020)
• China continues to be the largest single market, with 88,968 units sold in China, up 3% from the previous year
• Asia Pacific, the Middle East, and Africa also continued to grow positively overall, selling 121,641 units, an increase of 4% year-on-year.
• 80,892 units sold in Europe and 69,629 units sold in the United States

Porsche for the past 3 years in numbers

Lastly, this is the current Porsche AG Executive Board members (directors), but it looks like this, isn't it?

That's all from the 2021 Porsche Annual Press Conference ~.

Source (all official):
◆Porsche achieves sustainable growth in 2020 financial year
◆Annual & Sustainability Report 2020
◆Porsche achieves sustainable growth in 2020