Porsche sets financial records in 2022, launches ‘Road to 20’ program

MANILA: Porsche AG concluded the financial year of 2022 with four new records.

In 2022, group sales revenue increased by 13.6%, reaching €37.6 billion. The operating profit rose from €1.5 billion to €6.8 billion from the previous year, an increase of 27.4%. Group deliveries and automotive net cash flow both surpassed previous records. The operating return on sales for Porsche AG increased from 16% to 18%.

“In difficult conditions, we achieved the strongest result in the history of Porsche, by some distance. We were also able to offer our customers exciting new products yet again in 2022. This is the result of a great team performance,” Porsche AG Executive Board Chairman Oliver Blume stated.

Despite the consequences of the conflict in Ukraine, the difficulties posed by the coronavirus pandemic, and the impediments to the global supply chain, Porsche AG was able to deliver 309,884 vehicles to customers in the previous year. This is 2.6% higher than the 301,915 units delivered in 2021. Automotive net cash flow also increased from €3.7 billion to €3.9 billion in 2022.

“Our success factors are improved price positioning, the strong product mix, the increase in vehicle sales, exchange rate effects, and our strict cost discipline,” Porsche AG Executive Board for Finance and IT Deputy Chairman Lutz Meschke said.

Setting itself high targets for the future, Porsche launched its ambitious Road to 20 program with the goal of achieving a long-term group operating return on sales of more than 20%.

“With the Road to 20, we are making Porsche even more resilient and our brand stronger than ever and we’re going to take a fresh look at everything, from our product range and pricing to our cost structure. We want to increase the quality of our contribution margins and make our products even more attractive,” Meschke stated.

The Road to 20 program carries on the success of Profitability Program 2025, which helped Porsche become more crisis-resistant in previous years.

In September 2022, Porsche ushered in a new era with the biggest IPO in Europe in terms of market capitalization from this strong foundation.

“We can now become even more focused and pick up even more speed. The newly attained autonomy gives us additional entrepreneurial freedom. We will strengthen specific capabilities in key areas such as software and battery technology,” Meschke said.

Porsche is also moving forward with its modern luxury strategy. Porsche is considered to be the most valuable luxury brand in the world, according to the Luxury & Premium Report of consulting firm Brand Finance.

“We combine an outstanding product with a highly personal experience. With a brand that takes responsibility within society. We are expanding our product portfolio with new sports car concepts. We will also continue to focus on limited editions and expand our Sonderwunsch program in the future. We want to accommodate the desires and lifestyle of our customers even more than we do already, exceeding their expectations time and again,” Blume stated.

At the same time, Porsche aims to maintain its ambitious electrification program. In 2024, the all-electric Porsche Macan is set to be released in the market. Meanwhile, the all-electric Porsche 718 will be launched in the middle of the decade. The fully electric Porsche Cayenne will come next. The SUV's fourth generation will emphasize Porsche's goal to sell more than 80% of its new models as all-electric models by 2030.

Also, Porsche plans on expanding its product line with an all-electric SUV that will sit above the Cayenne. This new vehicle concept is meant to provide excellent performance, automated driving functions, the classic Porsche flyline, as well as an entirely new interior. This will be built on the Porsche SSP Sport platform.

“We are thereby underlining and strengthening our sporty luxury positioning. We are observing growing profit pools in this segment, in particular in China and the US,” Blume said.

Porsche has also set high sustainability standards for itself. Porsche is working toward a net carbon neutral value chain for its vehicles in 2030 as part of its overall strategy. This also includes a net carbon-neutral use phase for future battery electric vehicle models (based on an assumed total mileage of 200,000km per vehicle).

Porsche also opened a test facility for e-fuels in Chile in 2022. Production began last December.

“With this, we have demonstrated that e-fuels can be produced on an industrial scale,” Blume said.

Porsche also  made a great advancement in its digitalization in 2022. The agile Digital Family unit was formed by combining the expertise of Porsche Digital, MHP, and Porsche IT.

“They now work together even more closely, enabling us to push the transformation process forward with greater focus and we’re a more attractive employer for IT experts than ever before. At Porsche, software specialists can work together with the tech giants of the world – on vehicles that are desired around the globe,” Meschke stated.

This year, Porsche will celebrate its 75th anniversary, as well as the 60th anniversary of the Porsche 911. Porsche will return to the 24 Hours of Le Mans in June. Porsche will compete for the overall victory with the newly designed Porsche 963 on the 100th anniversary of the historic event.

Photos from Porsche

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