The Mind games in the Volkswagen Group about a initial public offering the daughter Porsche, about which manager magazin has already reported in detail, meet with open ears at the sports car manufacturer from Stuttgart. The decision on this lies with the VW Group, said Porsche CFO Lutz Meschke (54) on Friday during the annual press conference. “We have already largely discussed the advantages of such an IPO or listing”. The advantages are now well known, and “one cannot ignore them when dealing with the subject,” he added, referring to his most recent one Interview with the “Stuttgarter Zeitung”.
In it he described the stock exchange listing as an advantage for the selling group, because it made the value of the brand visible, while the stock market valuation of the multi-brand company did not reflect it. Porsche itself can only “contribute to providing the arguments.” Porsche CEO Oliver Blume (52) expressed himself more cautiously, but emphasized on the subject that the corporate value of Porsche will increase through the strategy of CO2 neutrality until 2030.
Meschke has been pushing the topic for a long time. As early as autumn 2018, he publicly announced that Porsche could be valued at 60 to 70 billion euros on the stock exchange. At that time, the unauthorized rushing ahead in the corporate headquarters was not so well received. The owner families Porsche and Piëch, however, stuck to Meschke. Last year he moved too to the board of the group holding company Porsche SE.
Like manager magazin had reported, the Volkswagen Group is considering a partial IPO of Porsche in order to raise billions for the high investments in the Electromobility to collect.
CEO Diess also plays openly with the idea
VW boss Herbert Diess (62) has not yet officially confirmed this, but presented the advantages and disadvantages of the idea at the group’s annual press conference this week. He said that Porsche, the group’s earnings pearl, is in a superior position with around 15 percent return on sales Earnings situation and continue to gain in value.
However, the return is so high because Porsche relies on resources from Audi and VW can fall back on the group. Porsche also makes a good contribution to the group. Due to the weakness of the other brands, this year, with an operating profit of 4.2 billion euros, it was even around 40 percent of the group’s operating profit.
According to Meschke, synergy effects in the group or profit contributions are not an obstacle to a stock exchange listing. In order to keep the cost advantages, Porsche does not have to be a 100 percent subsidiary. And as an investor, the Wolfsburg-based group would in future receive a dividend instead of the profit contribution.
The Porsche Show: 15 percent return, 80 percent electric cars
The presentation of the annual balance sheet and the new CO2 strategy 2030 was like a roadshow in front of potential investors. Blume presented a result that showed almost no scratches from the Corona crisis with its production breaks and closings of the car dealership. With record sales of 28.7 billion euros, Porsche achieved a return on sales of 14.6 percent, which was only a percentage point below that of the previous year. Sales shrank by 3 percent to 272,000 vehicles. This year there is a good chance of breaking the 300,000 car mark for the first time, explained Blume. The traditional goal of a return of 15 percent has been set.
The Porsche boss informed about the plan to achieve one billion euros in spending by 2030, so that the entire value chain of the automobile manufacturer will be CO2-neutral. More than 80 percent of the cars sold should then be fully or partially electric with the majority of purely battery-powered cars. “We are taking on a pioneering role in the auto industry,” said Blume.
Meschke explained how Porsche wants to earn money with digital services in the future. “We have positioned ourselves strategically very broadly,” emphasized the CFO. “By 2025 we want to generate double-digit total sales with digital services and of course earn money with them.” The Swabians want to participate in numerous startups in order to make offers such as an interactive fitness mirror for sports training at home or sound systems for the car to wealthy customers.
The Porsche management also wants to keep the cost side under control and has therefore tightened its savings and efficiency program. In the next five years, ten billion euros are to be raised instead of the previously planned six billion euros. From 2025 it should be three billion euros annually. The number of employees of a good 36,000 should not shrink, however, there is a job guarantee until 2030. “We are not cutting any jobs and are not parting with any subsidiary,” said Meschke.