Slide 1: The brand for those who follow their dreams
The brand for those who follow their dreams
Slide 2: Disclaimer
Disclaimer In this presentation (together with any additional or supplementary materials, the “Presentation”) the “Company” or “Porsche AG” means Dr. Ing. h.c. F. Porsche Aktiengesellschaft and the “Group” means Porsche AG together with its consolidated subsidiaries. This Presentation has been prepa
Slide 3: Oliver Blume, CEO and Lutz Meschke, CFO
Oliver Blume Lutz Meschke CEO CFO 911 Targa 4 GTS: Fuel consumption combined in l/100 km: 11.3 – 10.8 (WLTP), 10.7 – 9.9 (NEDC); CO2 emissions combined in g/km: 257 – 245 (WLTP), 243 – 227 g/km (NEDC) 3
Slide 4: Essence of Porsche
Essence of Porsche Iconic brand and heritage Structural growth Electrification, tech and sustainability Luxury with scale benefits Increased corporate independence Stellar financial performance 4
Slide 5: Porsche. Past. Present. Future
Porsche. Past. Present. Future “Luxury Performance BEV” “Brand extension” “911” “Motor sport heritage” 1948 1964 2002 2019 Now and future 5
Slide 6: Deep-dive: Luxury brand stellar financials
DEEP-DIVE ECONOMIC MODEL ‘‘Luxury brand 01 stellar financials” 911 Sport Classic: Fuel consumption combined in l/100 km: 12.6 (WLTP), 12.8 (NEDC); CO2 emissions combined in g/km: 285 (WLTP), 292 g/km (NEDC)
Slide 7: Porsche's unique economic model
Porsche’s unique economic model Key facts, 2021 € 100 k Automotive Revenue per car1 24.5 % more than 2x premium OEMs2 Automotive EBITDA margin4,6 Lean cost structure & scale Significant BEV3-focused 10+ % Automotive net cash flow margin5,6 investments made 1 Ratio Automotive Revenue (sales revenue)
Slide 8: Overview of Porsche's business
Overview of Porsche’s business 1 Automotive Revenue components 2 Gross and operating profitability Income 3 Key drivers of Financial Services segment statement 4 Other income statement items 5 Strong resilience 6 Automotive investments Cash flow 7 Automotive trade working capital statement 8 Other c
Slide 9: Strong growth in Deliveries
1 Strong growth in Deliveries Deliveries, in k cars1 Σ=119 ~10 % Σ=302 Track record of successful model CAGR launches 2-door sports cars with consistently strong volumes Steep Taycan ramp-up ~40 % PHEV2 / BEV in Europe 2021 Order bank at record level3 2011 2021 1 Deliveries are defined as the number
Slide 10: Attractive pricing with upside from customization
1 Attractive pricing with upside from customization Base retail prices from current entry to top model1, in € k ~20% Options / Exclusive2 282 Clear differentiation across models 212 On average, top model price >2x entry 205 191 model price 144 Special editions at attractive price points 91 113 Furth
Slide 11: Revenue breakdown by segment
1 Revenue breakdown by segment Automotive Revenue, in € bn Financial Services Revenue, in € bn 7.8 % 7.9 % CAGR CAGR 30.3 26.1 26.1 2.7 2.8 3.1 2019 2020 2021 2019 2020 2021 91 % 90 % 91 % 9% 10 % 9% Automotive Revenue as % of total1 Financial Services Revenue as % of total1 1 Total is the sum of Re
Slide 12: FX exposure and hedging approach
1 FX exposure and hedging approach Net currency exposure1 as % of Automotive Revenue Porsche benefits from strong demand in international markets, especially in China and the US Largest net currency exposures to CNY and USD, USD has counterbalancing purchasing volumes mainly from ~55% of Automotive
Slide 13: Attractive gross profit
2 Attractive gross profit Group cost of sales (COS), 2019-21 in € bn 2019 2020 2021 Group Revenue 28.5 28.7 33.1 Increasing Group gross margin levels (-) Group cost of sales (21.3) (21.2) (24.3) Group gross profit 7.3 7.5 8.9 Focused management of raw Group gross margin, in % 25.5 % 26.3 % 26.7 % ma
Slide 14: Lean cost structure
2 Lean cost structure Net SG&A1 ratio, in % of Group Revenue2 Group net SG&A expenses, in € bn 11.9 % 11.7 % 10.7 % Operating leverage potential 3.4 3.4 3.5 Ongoing focus on cost optimization Historically decreasing net SG&A ratio Minor FS share in Group net SG&A expenses 2019 2020 2021 1 Sum of dis
Slide 15: Significant operating profit expansion
2 Significant operating profit expansion Automotive RoS, in % Financial Services RoS, in % Automotive operating profit, in € bn Financial Services operating profit, in € bn 16.2 % 15.4 % 16.6 % 7.4 % 6.7 % 10.0 % 9.3 % 25.7 % CAGR CAGR 4.2 5.0 4.0 0.2 0.2 0.3 20191 2020 2021 2019 2020 2021 96 % 95 %
Slide 16: Key drivers of Financial Services segment
3 Key drivers of Financial Services segment Return on assets, in %1,2 Total assets, in € bn3 Total equity, in € bn4 2.6 % 2.3 % 3.3 % RoE, in %2,5 16.7 % 14.7 % 21.2 % 15.8 % Equity ratio, in %2,4,6 16.1 % 15.4 % 15.3 % CAGR 10.6 12.8 % 8.7 CAGR 7.9 1.3 1.3 1.6 2019 2020 2021 2019 2020 2021 1 Define
Slide 17: Group – summary P&L
4 Group – summary P&L in € bn 2019 2020 2021 Automotive EBITDA 6.31 6.4 7.4 Automotive depreciation & amortization2 2.1 2.4 2.4 Spin-off of € 10.4 bn intercompany Automotive operating profit 4.21 4.0 5.0 loan receivable reducing interest Financial Services op. profit / eliminations 0.2 0.2 0.3 incom
Slide 18: Strong resilience
5 Strong resilience Group RoS, in % 16.1 % 14.6 % Financially strong customer base 9.7 % Ability to adapt and react quickly Structural improvements since 2009 Financial Covid Average crisis ’09 crisis ’20 ‘17-‘211 1 2019 incl. € 535 mn penalty notice issued by the public prosecutor's office in Stutt
Slide 19: Structural changes since 2008
5 Structural changes since 2008 FY 20081 2021 Size & ~100 k Increased ~300 k scale vehicles Delivered scalability vehicles Delivered 19 %2 8 %3 13 %2 32 %3 Rest of China Rest of China World World Regional Geographic delivery mix expansion 34 %4 40 % 26 %4 29 % North America Europe North America Euro
Slide 20: Foundational investments in the past
6 Foundational investments in the past Automotive investments1 to Automotive Revenue, in % Automotive investments, in € bn Well-invested asset base today 16.0 % 14.3 % 12.5 % ~55 % of Automotive product 4.2 investments in 2021 dedicated to 3.7 3.8 BEV & PHEV2 >9 x lower investment per car (~€ 14 k3)
Slide 21: Automotive – R&D to support electrification strategy
6 Automotive – R&D to support electrification strategy Automotive R&D1, in € bn Capitalization ratio2, in % Expensed R&D (excl. amortization) Capitalized R&D 43.8 % 54.6 % 66.2 % Current R&D primarily related to new model launches in 2023 and 2024 Higher capitalization ratio in 2021 as result of dev
Slide 22: Automotive – well-invested asset base
6 Automotive – well-invested asset base Automotive capex1, in € bn Ratio Automotive capex to Automotive Revenue, in % PP&E capex Intangibles capex 2019 capex elevated due to 7.6 % 5.7 % 4.5 % investments in new Taycan factory Well invested asset base – no new 0.2 0.3 0.3 factory required for envisag
Slide 23: Automotive – efficient trade working capital
7 Automotive – efficient trade working capital Automotive trade working capital1 breakdown, in € bn Automotive trade working capital as % of Automotive Revenue Inventories Trade receivables Trade payables Inventory levels reflect 8.7 % 11.3 % 11.4 % centralized production with 3.5 high share of expo
Slide 24: Automotive – net cash flow development
8 Automotive – net cash flow development in € bn 2019 2020 2021 Other working capital driven primarily Operating profit1 4.22 4.0 5.0 (+) Depreciation & amortization3 2.1 2.4 2.4 by development of warranties EBITDA 6.32 6.4 7.4 (-) Change in trade working capital4 (0.7) (1.0) (0.0) Financial result
Slide 25: Group – pension provisions
9 Group – pension provisions in € bn 2019 2020 2021 Pension obligation substantially reduced in Present value of pension obligation 5.6 6.1 5.7 H1 2022 (-) Fair value of plan assets (0.1) (0.1) (0.1) Net defined benefit obligation 5.4 5.9 5.5 € 3.6 bn provisions for pensions and similar % Unfunded r
Slide 26: Automotive net liquidity development
10 Automotive net liquidity development Automotive net liquidity1, in € bn Automotive net liquidity ratio as % of Automotive Revenue2 Cash and cash equivalents Securities, loans and time deposits Third-party borrowings 6.8 % 11.4 % 16.4 % 5.0 Robust Automotive net liquidity as 3.0 result of strong o
Slide 27: Potential Post-IPO capital structure
10 Potential Post-IPO capital structure Expected Automotive net liquidity development in 2022 Illustrative Automotive net liquidity, in € bn Strong cash flows expected in 2022 Liquidity effect from receivables spin- off initiated in H1 20221 5.0 Potential cash injection by VW AG before possible IPO
Slide 28: H1 2022 Financial Performance
H1 2022 FINANCIAL PERFORMANCE ‘‘Strong performance 02 despite challenges” 911 Sport Classic: Fuel consumption combined in l/100 km: 12.6 (WLTP), 12.8 (NEDC); CO2 emissions combined in g/km: 285 (WLTP), 292 g/km (NEDC)
Slide 29: Revenue increase despite Deliveries decline
Revenue increase despite Deliveries decline Group Revenue, in € bn Deliveries, in k cars 8.5 % (5.1) % YoY growth YoY growth 16.5 17.9 153.7 145.9 H1 2021 H1 2022 H1 2021 H1 2022 15.1 16.4 98 113 Automotive Revenue, in € bn Automotive Revenue per car, in € k 29
Slide 30: Strong profit increase
Strong profit increase Group operating profit, in € bn Automotive EBITDA, in € bn 24.6 % 12.6 % YoY growth YoY growth 3.5 3.9 4.3 2.8 H1 2021 H1 2022 H1 2021 H1 2022 16.9 % 19.4 % 25.5 % 26.4 % Group RoS, in % Automotive EBITDA margin, in % 30
Slide 31: Continued solid cash flow generation
Continued solid cash flow generation Automotive net cash flow, in € bn Automotive net liquidity, in € bn (8.2) % 43.9 % YoY growth YoY growth 2.6 2.4 5.6 3.9 H1 2021 H1 2022 Jun. 30, 2021 Jun. 30, 2022 17.2 % 14.5 % 17.8 %1 as % of Automotive Revenue as % of LTM Automotive Revenue 1 LTM refers to la
Slide 32: Outlook: Ready to deliver
OUTLOOK ‘‘Ready to deliver.” 03 911 Sport Classic: Fuel consumption combined in l/100 km: 12.6 (WLTP), 12.8 (NEDC); CO2 emissions combined in g/km: 285 (WLTP), 292 g/km (NEDC)
Slide 33: Porsche financial outlook
Porsche financial outlook Key Performance Indicators 2021A 2022E Mid-term target Revenue € 33.1 bn ~€ 38-39 bn ~7-8 % CAGR Group RoS 16.0 % ~17-18 % ~17-19 % EBITDA margin 24.5 % ~25-27 % Automotive Net cash flow margin 12.1 % ~12.5-14 % Our long-term ambition 20+ % Group RoS Note: Subject to FX flu
Slide 34: Capital allocation policy
Capital allocation policy Capex & R&D Focused investment program Ventures Select investments with preference for partnerships Pension Fund the pension deficit in mid-term Liquidity Keep strong Automotive net liquidity position of 15-20 % of Automotive Revenue Dividend Mid-term target: 50 % pay-out r
Slide 35: Summary Conclusion
SUMMARY CONCLUSION ‘‘Unique position and … 04 … only getting started” 911 Sport Classic: Fuel consumption combined in l/100 km: 12.6 (WLTP), 12.8 (NEDC); CO2 emissions combined in g/km: 285 (WLTP), 292 g/km (NEDC)
Slide 36: Unique position in luxury automotive segment
Unique position in luxury automotive segment Automotive revenue per car1, in € k2 Niche luxury3 300 Luxury 100 Premium4 50 10 300 1,000 Deliveries, in k cars2 1 Ratio Automotive Revenue to Deliveries for Porsche, for other OEMs ratio of Automotive revenue to deliveries (as such terms are defined in
Slide 37: Impact of BEV ramp-up on profitability
Impact of BEV ramp-up on profitability Share of Deliveries p.a., in % 80+ % 50+ %1 BEV PHEV 2020 2025 2030 Note: Illustrative, use of silhouettes not indicative of cycle plan | 1 Including PHEV and BEV 3737
Slide 38: Capital efficiency at inflection point
Capital efficiency at inflection point Illustrative capital efficiency framework Group RoS Automotive D&A as % of Automotive Revenue Automotive capex and capitalized R&D as % of Automotive Revenue ~17-19%2 Future margin upside potential Well-invested asset base ~15%1 ~10%3 Focused investment strateg
Slide 39: Governance: Increased corporate independence
GOVERNANCE ‘‘Increased corporate 05 independence” 911 Sport Classic: Fuel consumption combined in l/100 km: 12.6 (WLTP), 12.8 (NEDC); CO2 emissions combined in g/km: 285 (WLTP), 292 g/km (NEDC)
Slide 40: Future Porsche Governance Principles
Future Porsche Governance Principles1 Governance framework incl. two comprehensive agreements (ICA and RelA)2 to ensure entrepreneurial freedom to unlock Porsche’s full potential Porsche AG (“PAG”) acts as an independently listed public company DPLTA3 with VW AG to be terminated by year end of IPO;
Slide 41: Industrial Cooperation Agreement (ICA)
Industrial Cooperation Agreement (“ICA”) • PAG and VW AG currently benefit from an extensive industrial and strategic cooperation Status Quo • Key areas of cooperation and synergies: R&D, production, purchasing and procurement, logistics and IT • Preserve synergies between PAG and VW Group • High de
Slide 42: Industrial Cooperation Agreement (cont'd)
Industrial Cooperation Agreement (cont’d) • Continuation of existing agreements and group transfer pricing mechanisms, i.e. already today at arm’s length Key Content and Principles • Cooperation committee with equal representation to be established to ensure an early and ongoing mutual information a
Slide 43: Relationship Agreement (RelA)
Relationship Agreement (“RelA”) • VW AG as parent company would continue to fully consolidate PAG in its financial accounts, following termination of DPLTA between VW AG and PAG Guiding Principles • Principle of group-friendly behaviour and of consideration following a potential IPO • High degree of
Slide 44: Relationship Agreement (cont'd)
Relationship Agreement (cont’d) Information Sharing • PAG to provide necessary information that allow VW AG to comply with applicable laws and information requirements • Financial reporting and financial group audits • Tax reporting • ESG disclosure, PAG and VW AG to discuss in good faith to reach a
Slide 45: PAG Supervisory Board
PAG Supervisory Board Guiding Principle • PAG SB to act in the best interest of PAG as with every publicly listed company • 3 Porsche SE representatives (incl. chairman) • 2 independent representatives Planned Supervisory Board • 5 nominated by VW AG (incl. the Chairman of Volkswagen AG SB for two t
Slide 46: Management of potential conflicts of interest
Management of potential conflicts of interest Provisions in place to manage potential conflicts of interest Negotiation and conclusion of ICA and RelA prior potential IPO1 Long term duration (20 years +) of ICA and RelA provides for clarity and planning security For IPO related topics, Oliver Blume
Slide 47: Planned capital market-oriented PAG EB incentivization
Planned capital market-oriented PAG EB incentivization1 Compensation structure Key principles of remuneration from 1st January 20232 Long-term Fixed Incentivization completely based on PAG performance incentive salary STI based on ROS and ROI (LTI) 4-year LTI based on virtual shares (TSR3 approach)
Slide 48: Appendix
FPoRSCHE
Slide 49: Breakdown of revenue by type of products / geography
Breakdown of revenue by type of products / geography Revenue by type of products Revenue by geography in € bn 2019 2020 2021 in € bn 2019 2020 2021 Vehicles 22.0 21.6 25.4 Germany 3.8 3.7 4.0 Genuine parts 1.5 1.5 1.5 Europe without Germany 5.9 5.7 6.7 Used vehicles and 3P products 1.0 2.4 2.7 North
Slide 50: Breakdown of revenue and operating profit by segment
Breakdown of revenue and operating profit by segment Revenue by segment Operating profit by segment in € bn 2019 2020 2021 in € bn 2019 2020 2021 Automotive 26.1 26.1 30.3 Automotive 3.7 4.0 5.0 Financial Services 2.7 2.8 3.1 Financial Services 0.2 0.2 0.3 Eliminations (0.2) (0.2) (0.3) Eliminations
Slide 51: Group – consolidated income statement (FY)
Group – consolidated income statement (FY) in € mn 2019 2020 2021 Revenue 28,518 28,695 33,138 (-) Cost of sales (21,256) (21,155) 1 (24,281) (=) Gross profit 7,262 7,540 8,857 (-) Distribution expenses (2,044) (1,881) (2,111) (-) Administrative expenses (1,029) (1,255) 1 (1,426) (+) Other operating
Slide 52: Group – condensed consolidated income statement (HY)
Group – condensed consolidated income statement (HY) in € mn H1 2021 H1 2022 Revenue 16,525 17,922 (-) Cost of sales (12,036) (12,869) (=) Gross profit 4,489 5,053 (-) Distribution expenses (957) (956) (-) Administrative expenses (722) (766) (+/-) Other operating result (18) 149 (=) Operating profit
Slide 53: Automotive net cash flow generation
Automotive net cash flow generation in € bn 2019 2020 2021 H1 2021 H1 2022 Automotive net liquidity as of Jan. 1 2.3 1.8 3.0 3.0 5.0 Operating profit1 4.22 4.0 5.0 2.7 3.3 (+) D&A3 2.1 2.4 2.4 1.2 1.1 EBITDA 6.32 6.4 7.4 3.9 4.3 (-) Change in trade working capital4 (0.7) (1.0) (0.0) 0.9 0.6 (+/-) Ch
Slide 54: Automotive – net liquidity bridge
Automotive – net liquidity bridge in € bn Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Jun. 30, 2021 Jun. 30, 2022 Automotive cash and cash equivalents plus securities, loans and time 4.8 6.2 8.4 7.0 8.5 deposits (-) Automotive third-party borrowings (3.0) (3.2) (3.4) (3.1) (2.9) (=) Automotive net liq
Slide 55: Group – research and development costs
Group – research and development costs in € mn 2019 2020 2021 H1 2021 H1 2022 Research and non-capitalized development costs 1,220 1,018 816 471 319 Amortization of development costs 923 972 968 491 380 Research and development costs recognized in the income statement 2,143 1,990 1,784 962 699 Addit
Slide 56: Group – consolidated statement of financial position (FY)
Group – consolidated statement of financial position (FY) in € mn Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Intangible assets 5,085 5,437 6,190 Property, plant and equipment 8,624 8,695 8,763 Leased assets 3,829 3,614 3,954 Equity-accounted investments1 298 167 573 Other equity investments 146 217 3
Slide 57: Group – consolidated statement of financial position (FY)
Group – consolidated statement of financial position (FY) in € mn Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Subscribed capital 45 45 45 Capital reserves 12,726 13,754 14,225 Retained earnings 4,991 6,302 9,146 Other reserves (339) 118 (489) Equity before non-controlling interests 17,423 20,219 22,92
Slide 58: Group – condensed consolidated statement of fin. position (HY)
Group – condensed consolidated statement of fin. position (HY) in € mn Dec. 31, 2021 Jun. 30, 2022 Intangible assets 6,190 6,813 Property, plant and equipment 8,763 8,659 Leased assets 3,954 4,048 Financial services receivables 3,461 3,895 Equity-accounted investments1, other equity investments, oth
Slide 59: Group – condensed consolidated statement of fin. position (HY)
Group – condensed consolidated statement of fin. position (HY) in € mn Dec. 31, 2021 Jun. 30, 2022 Equity before non-controlling interests 22,927 15,036 Non-controlling interests 8 7 Equity 22,935 15,043 Provisions for pensions and similar obligations 5,525 3,649 Financial liabilities 6,599 6,424 Ot
Slide 60: Pre-IPO reorganization
Pre-IPO reorganization Company reorganization initiated in H1 2022 and completed in July 2022 Spin-off of € 10.4 bn misc. financial assets1 against another subsidiary2 of VW AG Additional spin-off of € 1.5 bn cash equivalents Reorganization effects of € 11.9 bn as of Jun. 30, 2022 financial statemen
Slide 61: Glossary (1/4)
Glossary (1/4) ADAS: Advanced Driver Assistance System Audited 2021 Consolidated Financial Statements: Audited consolidated financial statements of the Company as of and for the year ended December 31, 2021 Automotive or Auto: Porsche automotive segment or relative to Porsche automotive segment Auto
Slide 62: Glossary (2/4)
Glossary (2/4) Capitalization ratio: Defined as additions to capitalized development costs divided by research and development costs (without amortization) Car delivered: Car handed over to the end customers Cariad: Software subsidiary of Volkswagen Group China: Mainland China and Hong Kong Covid: C
Slide 63: Glossary (3/4)
Glossary (3/4) Group or Porsche: Dr. Ing. h.c. F. Porsche Aktiengesellschaft and its consolidated subsidiaries. Group include Automotive and Financial Services segments HEV: Hybrid electric vehicle HNWI: High net worth individuals, defined as those with a net worth of between US$ 1.0 and 30.0 millio
Slide 64: Glossary (4/4)
Glossary (4/4) Scope 1 emissions: Direct emissions from owned or controlled sources as defined per Greenhouse Gas Protocol Scope 2 emissions: Indirect emissions from the generation of purchased energy as defined per Greenhouse Gas Protocol Scope 3 emissions: All indirect emissions (not included in s
Slide 65: Range/consumptions/emissions
Range/consumptions/emissions Weitere Informationen zum offiziellen Kraftstoffverbrauch und den offiziellen spezifischen CO₂-Emissionen neuer Personenkraftwagen können dem "Leitfaden über den Kraftstoffverbrauch, die CO₂-Emissionen und den Stromverbrauch neuer Personenkraftwagen" entnommen werden, de