Fundamental information about the group
Business model
Purpose of the company
“In the beginning, I looked around but could not find the car I’d dreamt of. So, I decided to build it myself.” These famous words from Ferry Porsche describe the aspiration of the Porsche AG Group. Its business purpose is to manufacture and sell luxury sports cars and engines of all kinds as well as other parts and components for these and other technical products. In addition, the purpose of the company includes performing development work and design engineering, including vehicle and engine construction; consulting and development in the field of data processing as well as the production and distribution of data-processing products; sale of merchandise and commercial exploitation of brand rights, including those containing the word “Porsche”. Also included are all other activities that are technically or economically related, including the commercial exploitation of intellectual property rights. Financial services are another business purpose, in particular finance and mobility services for customers and dealers.
Organization
Dr. Ing. h.c. F. Porsche Aktiengesellschaft (“Porsche AG”) is the parent company of the Porsche AG Group (Porsche AG and its fully consolidated subsidiaries) and has its registered office in Stuttgart. Further information can be found in the list of shareholdings pursuant to section 313 of the German Commercial Code (HGB). → Notes of the consolidated financial statements – 50. List of shareholdings
The structure of investments in Porsche AG remained unchanged from the fiscal year 2023. Volkswagen AG indirectly holds, via Porsche Holding Stuttgart GmbH, 75.4% of Porsche AG’s share capital.
Porsche Automobil Holding SE directly holds around 12.5% of the share capital. The remaining share capital is in free float. → Porsche in the Capital Market
The Porsche AG Group consists of the automotive and financial services segments. The reconciliation of the segments to the Porsche AG Group relates to transactions between the two segments that are subject to elimination. The activities of the two segments cover the five regions Germany, Europe without Germany, North America excluding Mexico, China including Hong Kong as well as the region Overseas and Emerging Markets (previously rest of the world1), which includes the remaining countries and regions. → Notes to the consolidated financial statements – Segment reporting
1 The name of the sales region rest of world was changed to Overseas and Emerging Markets in the reporting year 2024. This is a name change only and has no impact on the geographical boundaries or the operating activities in this region.
Automotive segment
The activities of the automotive segment cover the vehicles business field as well as the other business fields services and design. The vehicles business field includes the procurement, production, development and sale of vehicles as well as related services.
Procurement
Procurement is centrally organized in Weissach and has a global network of suppliers. This enables the Porsche AG Group to purchase production materials and capital goods as well as services worldwide in the required quality. In this context, the Porsche AG Group is also focusing on start-ups and software suppliers. Through the integration of the procurement organizations of the Volkswagen Group brands, the Porsche AG Group is able to leverage group-wide synergies through improved availability of production materials and cost advantages.
Production
The headquarters of Porsche AG and the production facilities for the Taycan and 911 model series as well as customer sports vehicles from Porsche Motorsport are located in Stuttgart-Zuffenhausen. The Porsche AG Group also maintains production facilities in Leipzig, where the Macan and Panamera model series are produced.
For the Cayenne model series, the Porsche AG Group uses other production sites. The Cayenne series is produced at the Volkswagen Group’s multi-brand site in Bratislava, Slovakia. Some models of this series are assembled at a third-party assembly plant in Kulim District, Kedah, Malaysia. These are intended for the Malaysian market and, since 2024, also for the Thai market. The Volkswagen Group also has the capacity to produce the 718 series on a contract manufacturing basis at the Osnabrück plant. In addition to this, the Porsche AG Group operates a pilot series center in Sachsenheim as a central production facility to provide prototype vehicles for future Porsche series models. → Production
Development
Weissach is home to the Porsche Research and Development Center, where Porsche vehicles are developed from first sketch to series production. Weissach is also home to the development of infotainment and connect functions as well as vehicle-related digital solutions. The Shanghai development site complements these development activities with specific solutions for the Chinese market. → Research and development
Sales
The sales network comprises over 900 sales partners in more than 120 markets worldwide. Within this sales network, all major importers (18 legally independent entities) and selected Porsche dealer companies (17 legally independent entities) are part of the Porsche AG Group. → Deliveries
All brick-and-mortar retail formats follow the “Destination Porsche” retail concept, which has already been rolled out in more than 150 of the over 800 Porsche centers worldwide since the end of 2020, and some 500 others are to follow by the end of the decade.
Indirect online sales for the Porsche AG Group are conducted via its digital platform and sales partners. The digital vehicle search can now be accessed in over 100 markets around the globe. Porsche dealers use this platform to offer their immediately available new and used vehicles online. This includes basic models as well as exclusive variants.
Financial services segment
The financial services segment includes the leasing business, dealer and customer financing, the service and insurance brokerage business as well as mobility services for Porsche brand vehicles. In selected markets, the segment’s services are also offered for other brands of the Volkswagen Group, in particular the Bentley and Lamborghini brands. The segment includes the products and services of Porsche financial services companies, which, depending on the market, are provided by the company itself or in cooperation with local partners.
Strategic direction of the Porsche AG Group
Porsche AG aims to further expand its strong position as a profitable manufacturer of exclusive sports cars and to consistently realize Ferry Porsche’s vision. Strategy 2030 already pursued the goal of sustainably strengthening the Porsche AG Group’s position in global competition – with attractive products, successful motor sport, special customer experiences and a clear plan for how the company can actively shape the transformation of the automotive industry. The Porsche AG Group takes account of the rapid developments in the industry and incorporates them into the further development of its strategy. Strategy 2030 Plus is the Porsche AG Group’s response to the changed and highly challenging market environment.
With the launch of Strategy 2030 Plus, the previous six cross-functional strategies have been consolidated into four cross-functional strategies: Customers, Products, Sustainability and Transformation. Digitalization and Organization, which were independent cross-strategies in the prior year, have been subsumed under the Transformation cross-functional strategy. These four cross-functional strategies are at the heart of the Porsche AG Group’s strategy and are based on the two strategic elements “Road to 20” and Quality. Each of these cross-functional strategies has three strategic focus topics. These focus topics are intended to underscore the strategic direction and increase transparency. Together, they contribute to the group’s corporate goals. Two members of the Executive Board are responsible for each of the cross-functional strategies as overseers. Cross-functional teams implement the cross-functional strategies with their strategic focus topics.
Cross-functional strategy – Customers
The Customer cross-functional strategy focuses on the relationship with our customers. The clear goal is to excite customers when purchasing and owning their vehicle. With this strategy, the Porsche AG Group concentrates in particular on the strategic focus topics brand, customer experience and value-oriented growth. The aim is to ensure the attractiveness and exclusivity of the brand now and in the future, to create special customer experiences and to continue on its value-driven growth course.
As a modern luxury brand, Porsche AG intends to expand its customer base internationally. Special community and event formats will help attract new target groups to the brand and further increase the loyalty of existing customers. Personalized marketing and integrated networking of the various customer touch points across all sales channels create the basis for a special purchasing and ownership experience. The targeted development of growth markets forms the basis for sustainable, value-driven growth.
Cross-functional strategy – Products
The Products cross-functional strategy with its three strategic focus topics portfolio, technology and car software is geared toward future customer requirements. Digital, networked and innovative products and services can be decisive in developing and offering positive mobility experiences for Porsche AG’s customers.
The Porsche AG Group is committed to an attractive and flexible product portfolio, which in addition to electromobility includes vehicle models with combustion engines and plug-in hybrids. In addition, the expansion of special and exclusive manufacturing will give our customers a wide choice of customization options for their vehicles. The product strategy also pursues the goal of balancing supply and demand and thus focuses on value-oriented sales.
The Porsche AG Group wants to increase the share of new all-electric vehicles in proportion to total deliveries. This will depend to a large extent on customer demand, the development of electromobility in each region and regulatory incentive schemes.
Synergies with other Volkswagen AG Group brands will be leveraged, particularly in the development of hardware and software platforms for the vehicles and in the procurement process. Porsche AG is also investing in the development of synthetic fuels, referred to collectively as e-fuels. These are particularly suitable for reducing the CO₂‑ emissions of a fleet.
Cross-functional strategy – Sustainability
The Porsche AG Group aims to help shape the sustainable future of mobility. This includes both products that were developed taking into account sustainability aspects as well as its self-image as a modern employer open to society and reliable economic partner.
The Sustainability cross-functional strategy therefore pursues a holistic approach covering everything from environmental and social aspects to responsible corporate governance. This is done in the three strategic focus areas of environment, social and governance: Decarbonization and maintaining a circular economy along the entire value chain are key elements of the sustainability strategy. In all these endeavors, Porsche AG Group promotes diversity and sees itself as an active and committed partner to society. → Partner to society. It also promotes sustainability in the supply chain as well as transparent and responsible corporate governance.
Cross-functional strategy – Transformation
Porsche AG is convinced that innovation comes from the creativity of employees and the support of an organizational structure that fosters this creativity, thus making it possible to achieve excellence together. In a dynamically changing environment, the adaptability of the Porsche AG Group and its employees is of particular importance for sustainable success. It is important to provide the right answers to future challenges at an early stage and to see upcoming changes as an opportunity.
The Transformation cross-functional strategy focuses in particular on the strategic focus topics of innovation, digitalization and artificial intelligence, organization and value creation as well as people and culture. The aim is to ensure the adaptability and future viability of the Porsche AG Group. For the Porsche AG Group, innovations and new technologies are an integral part of the business model and open up a wide range of opportunities and growth prospects. Digitalization and the use of artificial intelligence enable new forms of collaboration and offer far-reaching opportunities for optimization. This is how the Porsche AG Group analyzes, evaluates and improves its working methods and processes. The employees and the shared corporate culture are core components of the Porsche AG Group. With effective leadership, employees are taken along on the path to transformation in order to drive change together. Porsche AG’s position as a top employee with high levels of employee satisfaction also plays an important role.
Road to 20
“Road to 20” is a strategic program that supports the long-term ambition of achieving an operating consolidated return on sales of more than 20%. “Road to 20” is also intended to optimize the resilience of the Porsche AG Group. Existing activities will be intensified with a focus on sustainably optimizing the cost structure.
Quality
Porsche AG is closely aligned with the guiding principle of Dr. Wolfgang Porsche: “Quality is the foundation of our business success.” Accordingly, quality is a key component of the foundation of the Porsche AG Group’s Strategy 2030 Plus. All employees are responsible for maintaining Porsche AG’s high quality standards. By pooling the expertise of all departments, the aim is to ensure that there is a common understanding of quality and awareness of customer expectations throughout the company. In this way, the Porsche AG Group intends to realize its vision of proactively capturing the customer wishes of tomorrow and making them a tangible experience in the vehicle for generations to come.
Together with the two building blocks of the foundation – Road to 20 and Quality – the four cross-functional strategies define the path on which the Porsche AG Group intends to expand its position for present and future generations. The focus here is on the four stakeholder groups: Customers, society, employees and investors. The Porsche AG Group believes that the unwavering focus on the needs of these groups will ensure sustainable growth.
Management and key performance indicators
Management and key figures
Based on the group strategy, this section describes how the Porsche AG Group is managed and which key figures are primarily used. The operating performance and the related success of the Porsche AG Group are reflected in both the financial and non-financial key figures as an integral part of the internal management system. There were no changes in the management process or the most important performance indicators compared to the prior year.
Management process at the Porsche AG Group
At the Porsche AG Group, the continuous and close alignment of the group strategy with the strategic and operational planning ensures full transparency in the financial assessment and evaluation of decisions on the direction to be taken. As a key management element of the Porsche AG Group, the multi-year operational plan, which is prepared once a year and generally for a period of five planning years, is derived from a strategic plan for the next ten years and approved by the Executive Board and the Supervisory Board. The multi-year operational planning serves to assess prerequisites for realizing the strategic projects as well as formulating and safeguarding the group’s targets, both technically and financially. It is on this basis that all corporate areas are coordinated regarding the cross-functional strategies, functions/processes, products and markets.
For the future orientation of the Porsche AG Group, the individual planning content is determined on the basis of the planning horizon:
- the cycle plan/product strategy and thus the product range as the long-term strategic determinant of the vehicle business and other mobility-related services,
- long-term sales planning that shows market and segment developments and is used to determine the delivery volume for the Porsche AG Group and
- capacity and utilization planning for the individual factories.
The aligned results of the upstream planning processes flow into the financial planning as a last step in the multi-year operational planning. For this purpose, the financial planning of the Porsche AG Group, including the segments and business fields, consists of the income statement, the financial and balance sheet planning, the profitability and liquidity planning as well as the investments as a prerequisite for the future product alternatives and alternative courses of action. The multi-year operational planning is then used to derive the binding targets/target recommendations for the first planning year, details of which are then finalized down to the level of the operational cost centers and subsidiaries in the budget planning for the individual months.
During the year, the budget is reviewed each month to determine the degree of target achievement. In this regard, target/actual and prior-year comparisons, variance analyses and–if required–action plans are key instruments for corporate management to ensure that the budgeted targets are reached. For the current fiscal year, monthly rolling forecasts are performed for the next three months and for the year as a whole and are backed up as standard by two detailed forecasts during the year and, if necessary, adjusted to reflect the latest developments. Current opportunities and risks are also taken into account when preparing the forecast to the extent that their occurrence is considered to be probable. The management process can thus ensure short-term adjustments and implementation programs to secure the forecast, also taking volatile conditions into account. In principle, the focus of management during the year is on adjusting current activities in line with requirements. Moreover, each current forecast provides the starting point for the upcoming multi-year operational plan/the budget planning for the following fiscal year.
