Porsche Ag · XETR:P911
Porsche — Dr. Ing. h.c. F. Porsche — FY2023 Earnings Presentation
70 slides from Porsche's earnings presentation, Mar 12, 2024
Slide 1: Leipzig, March 12
LEIPZIG, MARCH 12 DR. ING. H.C. F. PORSCHE AG 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements and prove to be incorrect, the actual results may be materially information that reflect Dr. Ing. h.c. F. Porsche AG's current views different from those Porsche AG expresses or implies by such about future events. These statements are
Slide 3: Ferry Porsche quote
“Those who are fortunate enough to build a business from a dream owe it to the world to be the guardians of those dreams“ FERRY PORSCHE 3
Slide 4: O5 SUSTAINABILITY
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Slide 5: Porsche is
PORSCHE is 5
Slide 6: Porsche Investor Relations
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Slide 7: Porsche Conference
Turbo fil Talente, POR. urbo fiir Talente. Porsche Juqendférderung. PoRscHe if : sess /6) dreams. 1 PORSCHE st PORSCHE CONFERENCE 2008 7
Slide 8: O5 SUSTAINABILITY
O5 SUSTAINABILITY —— ‘ | O6 PERFORMANCE CULTURE a O7 FINANCIALS e& PORSCHE faauerenveston '
Slide 9: Porsche – A unique story
Porsche – A unique story ICONIC RESILIENT S U S TA I N A B L E PERFORMANCE BRAND PERFORMANCE LUXURY C U LT U R E 9
Slide 10: Vision
VISION “The brand for those who follow their dreams“ 10
Slide 11: Attractive market fundamentals with positive outlook
Attractive market fundamentals with positive outlook STRONG HNWI1 YOUNGER, MORE DIVERSE GROWING MARKET GROWTH CONTINUES CUSTOMER BASE FOR LUXURY VEHICLES 1 High net worth individuals (US$ 1-30 mn liquid assets) as defined per Knight Frank Wealth report 11
Slide 12: Strong, loyal customer base paired with track record in conquest
Strong, loyal customer base paired with track record in conquest RETENTION GLOBAL NEW CUSTOMERS <~7 % annual overall churn rate 1 More than 3 Million known ~60 % Taycan buyers are first time Porsche customers Porsche customers2 1 Calculated as: number of registered customers at beginning of 2023 whi
Slide 13: Proven formula of serving existing and new customer segments
Proven formula of serving existing and new customer segments Inspire strategic target groups and build loyalty among existing customers High standard Driven Driven Creative Progressive Ambitious High income of living youth women leaders youngsters E X I S T I N G TA R G E T G R O U P S N E W TA R G
Slide 14: O5 SUSTAINABILITY
O5 SUSTAINABILITY —— ‘ | O6 PERFORMANCE CULTURE a O7 FINANCIALS e& PORSCHE Seas aa
Slide 15: Porsche – Definition of modern luxury
Porsche – Definition of modern luxury FREEDOM OF P O R S C H E F A M I LY SELF-EXPRESSION AS COMMUNIT Y I T ‘ S N O T W H AT Y O U B U Y, I T ‘ S W H AT YO U BUY INTO. ICONIC, MOST EXCITING PERSONAL PRODUCT EXPERIENCES RESPONSIBLE C O R P O R AT E C I T I Z E N 15
Slide 16: Strengthening brand desirability and global experiences
Strengthening brand desirability and global experiences O U T S TA N D I N G B R A N D A M B A S S A D O R S SPREAD PORSCHE EXPERIENCE CENTERS B O O S T A P P E A L O F R E TA I L L O C AT I O N S E X P A N D C U LT U R A L R E L E VA N C E 16
Slide 17: Porsche as a leading luxury brand
Porsche as a leading luxury brand TOP 10 MOST VALUABLE LUXURY AND PREMIUM BR ANDS 2023 1 2 3 4 5 6 7 8 9 10 Source: Brand Finance Luxury & Premium 50 2024 | Link: https://brandirectory.com/rankings/luxury-and-premium/ 17
Slide 18: Continuous investment into an elevated retail experience
Continuous investment into an elevated retail experience >70 DEALERSHIPS U R B A N F O R M AT T E M P O R A R Y F O R M AT S IN NEW HIGH-END E S TA B L I S H E D I N > 2 5 WITH HIGH APPEAL FOR LOOK & FEEL GLOBAL HOT-SP OTS N E W TA R G E T G R O U P S 18
Slide 19: Digital ecosystem as the basis for a personalized customer experience
Digital ecosystem as the basis for a personalized customer experience WEB TOUCHPOINTS C O N F I G U R AT O R MY PORSCHE APP New design of web Car configurator with next All new App as the gateway to touchpoints with >100 level visualization facilitating Porsche: +36 % active users in million visitor
Slide 20: The Chinese market remains challenging
The Chinese market remains challenging WE HAVE CHOSEN “ THE PORSCHE WAY ” TO DECOUPLE – WITH CLE AR PRINCIPLES AND STR ATEGY 2023 PREMIUM MARKET P O R S C H E C H I N A P R O A C T I V E LY DISCOUNT DEVELOPMENT1 REDUCED PRODUCTION TO BAL ANCE D E M A N D A N D S U P P LY Jan Feb Mar Apr May Jun Jul
Slide 21: Balanced demand and supply – The Porsche way
Balanced demand and supply – The Porsche way GIVES US A LOT OF E X TERNAL PR AISE W E H AV E B E E N L A U D E D F O R K E E P S U P P LY A N D T H E P O R S C H E W AY DEMAND IN BALANCE 21
Slide 22: Region V5 as incubator for new growth markets
Region V5 ‘Overseas and Emerging Markets’ as incubator for new growth markets R E G I O N V 5 S TA RT- U P I N C UB ATO R V5 VISION 2030 2005 2014 2015 2018 China Korea Brazil Taiwan Leverage of further volume and profit potentials A C C E L E R AT E D G R O W TH 52,220 C O N STA NT G R O W TH PAT H
Slide 23: Clear strategy to capture profit pools in emerging markets
Clear strategy to capture profit pools in emerging markets VA LU E - O RI EN T E D & S U S TA I N A B L E G R O W T H S T R AT E GY V5 = growth markets with strong performance and high future potentials Clear Vision 2030, focused market strategy and structured implementation plan Main objective: Max
Slide 24: Continued balanced geographical expansion
Continued balanced geographical expansion FY 20081 FY 2021 FY 2023 ~100 k ~300 k ~320 k Vehicles Delivered Vehicles Delivered Vehicles Delivered 19 %2 7 %3 13 %2 32 %3 16 %2 25 %3 Overseas China Overseas China Overseas China and and and REGIONAL Emerging Emerging Emerging DELIVERY Markets GEOGRAPHIC
Slide 25: O5 SUSTAINABILITY
O5 SUSTAINABILITY —— ‘ | O6 PERFORMANCE CULTURE a O7 FINANCIALS e& PORSCHE ease a5
Slide 26: Four new products to be launched in 2024
With four new powerful products to be launched in 2024 our portfolio is undergoing its biggest refresh in history SOS 1 APRIL SOS NOVEMBER SOS JANUARY SOS FEBRUARY SOS MID 2023 2023 2024 2024 2024 NEW 1 Start of Sales 26
Slide 27: Porsche Differentiation
Porsche Differentiation DESIGN QUALIT Y DRIVER PERFORMANCE EXPERIENCE FA S T T R AV E L L I N G S U S TA I N A B I L I T Y 27
Slide 28: Exterior/Interior, Porsche Active Ride, electric range
NE W Exterior/Interior INNOVATIVE Porsche Active Ride MORE THAN 90 km ELECTRIC R ANGE Turbo Differentiation E X TENDED Hybrid Offer 28
Slide 29: First Porsche on PPE Platform
FIRST PORSCHE on PPE Platform ON- AND OFF-ROAD E-Performance Rear axle STEERING SUPER-FAST connectivity NE W AR head-up display UP TO 613 km R ANGE 29
Slide 30: Macan Electric world premiere
Macan Electric world premiere POSITIVE E X TERNAL FEEDBACK World premiere: Porsche takes the all- The Porsche Macan just upped the ante Macan puts Porsche DNA in an electric Electric Porsche Macan gets 380-mile electric 2024 Macan to a new level for fast, family-friendly EVs package range and 630bhp
Slide 31: Charging power, acceleration and range
HIGHER UP TO 320 kW CHARGING POWER FASTER UP TO 0.6 s INCRE ASED ACCELER ATION FURTHER UP TO 35 % MORE R ANGE NE W push-to-pass FUNCTION 10-80 % SoC1: 18 min 1 Charging time for direct current (DC) with maximum charging power from 10 % SoC to up to 80 % SoC under optimal conditions (CCS fast chargin
Slide 32: New Taycan
New Taycan POSITIVE FEEDBACK ON R ANGE AND PERFORMANCE The 2025 Taycan Turbo S is the most powerful, New Porsche Taycan clocks 364-mile Porsche vaporizes Tesla’s EV ‘Ring record with quickest production Porsche ever range, 332kW charging new track-focused Taycan Improving the excellence density with
Slide 33: New 911 sporty high-performance hybrid
OUTLOOK MID 2024: new 911 PARTICUL ARLY sporty high- performance hybrid INSPIRED BY Motorsport 33
Slide 34: Clear product portfolio with capabilities to respond to electrification demand
Clear product portfolio with capabilities to respond to electrification demand SPORTS CARS1 SPORTS LIMOUSINES SPORT UTILITY VEHICLES ICON ELEGANCE PRESTIGE NEW PERFORMANCE FUNCTIONALITY DRIVING FUN LIFESTYLE 1 Two-door sports cars Potential Midterm Drivetrain Portfolio: ICE HEV BEV 34
Slide 35: Elevate Product Portfolio
Elevate Product Portfolio DESIRABILITY I N D I V I D U A L I Z AT I O N SPECIAL EDITIONS 35
Slide 36: Flexible Software Strategy
Flexible Software Strategy TO BE COMBINED WITH STRONG PARTNERS DRIVER EXPERIENCE P R E M I U M P L AT F O R M PA RT N E R S H I P S (DX) ELECTRIC (PPE) 36
Slide 37: Sharpening and expanding R&D and software competencies
Sharpening and expanding R&D and software competencies C H I N A R & D S AT E L L I T E „CAR-IT“ RESORT D I G I T A L F A M I LY Industry Expert Sajjad Khan 1500 Digital Experts from as Member of the Board for Software Porsche, MHP and Porsche Porsche R&D Satellite Dedicated China-for-China Porsche
Slide 38: Porsche production
Porsche production LEIPZIG IS FACTORY OF THE YE AR 2023 Flexible ICE / PHEV / BEV production footprint to meet customer demand Adaptive capacity thanks to shift adaptation and possible adjustments via the Volkswagen cooperation agreement Options for long-term capacity expansion to support BEV growth
Slide 39: Measures to manage supply chain risks
Porsche has implemented various measures to manage supply chain risks RISK MANAGEMENT CROSS-FUNCTIONAL S U P P LY C H A I N SYSTEMS MONITORING RESILIENCE − Redefining approach for critical − Active Monitoring Systems − Dual Sourcing supply chain and material groups − Cross-Functional supply chain −
Slide 40: ~» O05 sustainasitity
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Slide 41: Sustainability – Strategic Pillars
Sustainability – Strategic Pillars 01 02 03 04 05 06 D E C A R B O N I Z AT I O N CIRCUL AR DIVERSIT Y PA R T N E R T O S U P P LY C H A I N GOVERNANCE & ECONOMY SOCIET Y RESPONSIBILIT Y T R A N S PA R E N C Y 41
Slide 42: Strategy towards net carbon neutral value chain in 2030
Strategy towards net carbon neutral value chain of the newly produced vehicles in 2030 1 2 3 4 AMBITION IN 2030: NET CARBON NEUTRAL3 Decarbonization Portfolio Green electricity Zero-impact Supply chain: Other Decarbonization index index2 (DCI) electrification (BEV use-phase) factory vision energy, p
Slide 43: Being responsible. The new all-electric Macan
Being responsible. The new all-electric Macan 01 02 03 CO2 REDUCTION PRODUCTION E X PA N S I O N O F The decision to use low-CO2 aluminium 1 in the The production of the all-electric Macan in Leipzig is R E N E WA B L E E N E R G I E S high-voltage battery and in selected wheels, is net carbon neutr
Slide 44: Sustainability is also brought to the point of sale
Sustainability is also brought to the point of sale D E C A R B O N I Z AT I O N D E A L E R B U Y- I N TRAINING Ambition for CO2 net neutral >80 % of all Porsche Dealer staff is being trained operations in 2030 across dealerships have a on sustainability topics to dealerships sustainability plan1 d
Slide 45: External assessment of Sustainability Performance
External assessment of Sustainability Performance PORSCHE STRIVES FOR TOP R ANKINGS IN INDUSTRY COMPARISON 2023 1 C+3 (prime) 2 17.11 (low risk) 3 BBB2 1 Scale D- to A+ (best), score as at date: 02/01/2024 l 2 inverse scale 100 to 0 (best), last full update 04/26/2023 l 3 scale CCC to AAA (best), ra
Slide 46: Porsche exceeded the targets for the statutory gender quota
Porsche exceeded the targets for the statutory gender quota 2023 ACTUALS 2023 ACTUALS TA R G E T First management level 20.0 % 18.6 % Second management level 17.3 % 16.7 % 46
Slide 47: 06 P E R F O R M A N C E C U
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Slide 48: People-Centric Performance culture striving for perfection
People-Centric Performance culture striving for perfection PA S S I O N AG I L I T Y O N E FA M I LY PIONEERING SPIRIT 48
Slide 49: Strong employer brand is a key success factor
Strong employer brand is a key success factor for our future CONFIRMED BY YOUNG PROFESSIONALS – JANUARY 2024 PUBLISHER TARGE T GROUP R ANKING B U S I N E S S A D M I N I S T R AT I O N RANK 1 > 21.000 Students surveyed ENGINEERING RANK 1 IT RANK 4 B U S I N E S S A D M I N I S T R AT I O N RANK 1 >
Slide 50: O5 SUSTAINABILITY
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Slide 51: Strong Top Line and Resilient Performance
Porsche AG – Strong Top Line and Resilient Performance DESPITE COST INFL ATION AND ELE VATED SPENDING TOPIC MES SAGE 2023 Record results and resilient performance benefiting from “value over volume” approach and GROUP continued strong customer demand In a challenging environment, we have kept execut
Slide 52: Group and Automotive
Group and Automotive FINANCIAL PERFORMANCE OVERVIE W 2023 € 40.5 bn 18.0 % € 7.3 bn GROUP SALES GROUP RETURN G R O U P O P E R AT I N G REVENUE ON SALES PROFIT1 (+7.7 % compared (+-0 bps compared (+7.6 % compared to previous year) to previous year) to previous year) 25.7 % 10.6 % 12.8 % AUTOMOTIVE A
Slide 53: Group and Automotive
Group and Automotive FINANCIAL PERFORMANCE OVERVIE W 2023 € 6.9 bn € 7.2 bn AUTOMOTIVE AUTOMOTIVE O P E R AT I N G P R O F I T NET LIQUIDITY (Automotive RoS 18.6 %) (-12.9 % compared to previous year) € 2.8 bn € 2.0 bn 24.7 % AUTOMOTIVE RESEARCH A U T O M O T I V E C A P I TA L RETURN ON AND DEVELOP
Slide 54: Group – Sales Revenue and Operating Profit
Group – Sales Revenue and Operating Profit 2022 VS. 2023 GROUP SALES G R O U P O P E R AT I N G REVENUE, IN € BN P R O F I T, I N € B N +7.7 % +7.6 % Higher Results in Automotive segment at 7.3 40.5 unchanged high profitability of 18.6 % 37.6 6.8 Operating Profit in Financial Services at RoS of 8.8
Slide 55: Group – Operating Profit Development
Group – Operating Profit Development 2022 VS. 2023 C O N T R I B U T O R S T O O P E R AT I N G P R O F I T D E V E LO P M E N T, I N € B N +7.6 % Positive impacts from higher volume, increased pricing and beneficial mix 1.3 7.3 6.8 -0.2 Partially offset by inflationary supply chain -0.6 0.1 conditi
Slide 56: Automotive – Sales Revenue and Deliveries
Automotive – Sales Revenue and Deliveries 2022 VS. 2023 AUTOMOTIVE SALES DELIVERIES, REVENUE, IN € BN IN K UNITS +7.9 % +3.3 % Revenue growth outgrew increase in 37.3 320.2 34.6 309.9 deliveries Increased pricing, beneficial mix and strong personalization rate Strong Taycan performance in last year
Slide 57: Automotive – Deep Dive on Deliveries
Automotive – Deep Dive on Deliveries RESULTS 2023 REGIONAL DISTRIBUTION, MODEL DISTRIBUTION, % OF DELIVERIES IN K UNITS 87.6 Overseas and Emerging Markets with 16 % 10 % strongest regional growth (+16 %) 87.4 Deliveries compared to previous year: 22 % 911+24 %; 718 +13 %; Taycan +17 % 25 % 50.1 Caye
Slide 58: Automotive – Regional Delivery Mix and ASP Development
Automotive – Regional Delivery Mix and ASP 1 Development 2021 VS. 2022 VS. 2023 REGIONAL DISTRIBUTION, % OF DELIVERIES More balanced global delivery mix 309.884 320.221 301.915 10 % All regions (excl. China) with Germany 9% 10 % increasing share of global deliveries 26 % 26 % 27 % North America2 Dec
Slide 59: Automotive – Operating Profit
Automotive – Operating Profit 2022 VS. 2023, IN € BN +8.0 % Higher vehicle sales 6.9 Improved pricing 6.4 Better product mix and individualization Higher costs from parts, raw materials, energy and logistics Higher R&D expenses 2022 2023 Increased SG&A due to intensified investment in digitalization
Slide 60: Financial Services – Operating Profit
Financial Services – Operating Profit 2022 VS. 2023, IN € BN Penetration rate lower due to successive -11.3 % pricing of increased refinancing costs 0.3 Slightly lower portfolio margin 0.3 due to delayed pass-through of refinancing costs Unchanged robust risk profile Less favorable valuation effects
Slide 61: Automotive – Net Cash Flow and Liquidity
Automotive – Net Cash Flow and Liquidity 2022 VS. 2023 N E T C A S H F LO W, N E T L I Q U I D I T Y, Cash flow from operating activities IN € BN IN € BN increased despite temporarily higher vehicle inventories +2.8 % -12.9 % 8.3 Increase in vehicle inventory, primarily 4.0 driven by launch of new C
Slide 62: Porsche Financial Outlook
Porsche Financial Outlook MOST IMPORTANT PERFORMANCE INDICATORS 2023 OUTLOOK 2024 Sales Revenue € 40.5 bn € 40 - 42 bn GROUP Return on Sales (RoS) 18.0 % 15 - 17 % EBITDA Margin 25.7 % 24 - 26 % AUTOMOTIVE Net Cash Flow Margin 10.6 % 8.5 - 10.5 % BEV Share 12.8 % 13 - 15 % Our long-term ambition 20+
Slide 63: Capital allocation policy
Capital allocation policy DIVIDEND: 2023 1 : € 2.30 / € 2.31 per ordinary / preferred share MID-TERM TARGET: 50 % pay-out ratio2 CAPEX & R&D: Focused investment program TECHNOLOGY & VENTURE: Select investments with preference for partnerships PENSION: Commitment to partially fund the pension deficit
Slide 64: Road to 20 established to deliver stellar financial performance
Road to 20 established to deliver stellar financial performance C R E AT I O N R E A L I Z AT I O N P O R T F O L I O E L E VAT I O N > 6 0 0 C R E AT E D > 150 REALIZED C A R E F U L LY P L A N N E D A N D MEASURES MEASURES C L O S E LY C O O R D I N AT E D 64
Slide 65: Group – condensed consolidated Income Statement
Group – condensed consolidated Income Statement IN € MN 2023 % 2022 1 % DELTA % Sales Revenue 40,530 100.0 37,637 100.0 2,892 7.7 (-) Cost of sales -28,924 -71.4 -27,089 -72.0 -1,835 6.8 (=) Gross profit 11,606 28.6 10,549 28.0 1,057 10.0 (-) Distribution expenses -2,869 -7.1 -2,353 -6.3 -516 21.9 (
Slide 66: Automotive – Research & Development
Automotive – Research & Development IN € MN 2023 2022 Total research and development costs 2,834 2,651 % of Automotive Sales Revenue 7.6 % 7.7 % Expensed research and development costs (A) 752 700 % Total research and development costs 26.5 % 26.4 % Capitalized development costs 2,081 1,951 % Total
Slide 67: Group – condensed consolidated Statement of Financial Position
Group – condensed consolidated Statement of Financial Position IN € MN 31.12.2023 31.12.2022 1 DELTA % Intangible assets 8,554 7,473 1,080 14.5 Property, plant and equipment 9,394 8,924 471 5.3 Leased assets 4,190 3,854 336 8.7 Financial services receivables 4,676 4,382 294 6.7 Equity-accounted inve
Slide 68: Group – condensed consolidated Statement of Financial Position
Group – condensed consolidated Statement of Financial Position IN € MN 31.12.2023 31.12.2022 DELTA % Equity before non-controlling interests 21,667 17,027 4,640 27.2 Non-controlling interests 1 8 -7 -87.7 Equity 21,668 17,035 4,633 27.2 Provisions for pensions and similar obligations 4,315 3,668 647
Slide 69: Financial Calendar 2024
Financial Calendar 2024 A P R I L 29, 2024 Quarterly Report January - March 2024 J U N E 07, 2024 Annual General Meeting 20241 J U LY 24, 2024 Half-Yearly Financial Report 2024 O C T O B E R 29, 2024 Quarterly Report January - September 2024 The Annual General Meeting 2024 of Porsche AG is currently
Slide 70: Consumption Data
Consumption Data Model Consumption Data Taycan Turbo S Sport Turismo (WLTP) Electrical consumption combined: 21.5 – 18.9 kWh/100 km; CO₂ emissions combined: 0 g/km; CO₂ class: A 911 S/T (WLTP) Fuel consumption combined: 13.8 l/100 km; CO₂ emissions combined: 313 g/km; CO₂ class: G 718 Spyder RS (WLT
Dr. Ing. h.c. F. Porsche — FY2023 Earnings Presentation on 6ix