Q4 2024 Dr. Ing hc F Porsche AG Earnings Call - Pre-recorded
Welcome to the interim statement of our analyst and investors conference by 'twenty five.
Welcome to the interim statement of our analyst and investors Conference 2025.
Beyond: My name is beyond <unk> and I'm, the head of Investor Relations here at Porsche AG.
Beyond: My name is beyond <unk> and I'm, the head of Investor Relations here at Porsche AG.
Beyond: With me are Oliver Blume, the chairman of the Executive Board and Johan break now member of the Executive Board for Finance and I T.
Beyond: With me are Oliver Blume, the chairman of the Executive Board and Johan break now member of the Executive Board for Finance and I T.
Beyond: Both gentlemen will give you an update on our 24 results our strategy and the outlook on 25.
Speaker Change: Both gentlemen will give you an update on our 24 results our strategy and the outlook on 25.
Beyond: Before we begin let me remind you.
Beyond: Before we begin let me remind you.
Beyond: Any forward looking statement to be made during this interim statement are subject to the risks and uncertainties mentioned in the Safe Harbor statement included in the polishing materials online.
Any forward looking statements to be made during this interest statement are subject to the risks and uncertainties mentioned in the Safe Harbor statement included in the partial materials online.
Beyond: This statement will also be governed by this language and with that I would love now to hand over to Ali.
Beyond: This statement will also be governed by this language and with that I would love now to hand over to Ali.
There is no substitute nothing more desirable let's.
Beyond: There is no substitute nothing more desirable.
Ali: <unk> Porsche.
Ali: Let's Porsche that has been our aspiration for more than 75 years.
Ali: That has been our aspiration for more than 75 years.
Ali: And I can promise you one thing it will stay that way no matter, how the world around us changes.
Ali: I can promise you one thing it will stay that way no matter, how the world around us changes.
Speaker Change: A warm welcome from my side as well.
Speaker Change: A warm welcome from my side as well.
Ali: Today much will be about change.
Ali: Today much will be about change.
Ali: The world is becoming more digital more connected and at the same time more volatile.
Ali: The world is becoming more digital more connected and at the same time more volatile.
Ali: Environment has changed rapidly.
Ali: <unk> has changed rapidly and so has the needs of our customers.
Ali: So has the needs of our customers.
Ali: So I have some markets.
Ali: So I have some markets.
Ali: And in this challenging environment, we have delivered very solid results in 2024 at.
And in this challenging environment, we have delivered very solid results in 2024 at.
At the same time, we have made important adjustments at Porsche and more will follow in the coming weeks and months.
Ali: At the same time, we have made important adjustments at Porsche and more will follow in the coming weeks and months.
Speaker Change: We initiated a change in the board of management, which was planned long in advance Johann break now is taking over finance and it department, but he is the sales and marketing.
Ali: We initiated a change in the board of management, which was planned long in advance.
Ali: <unk> is taking over finance and I T Department, but yes, Becca the sales and marketing Department.
government: Government is here with us today, he will explain our numbers in detail later, we will answer your questions together.
Ali: The government is here with us today, he will explain our numbers in detail later, we will answer your questions together.
Ali: Three questions will guide us for the next minutes.
Speaker Change: Brief presence.
government: What was.
Ali: What was what is.
Ali: What will be.
Ali: We will look back on the year 'twenty Fannie four that lies behind us.
Ali: We will assess the current situation and the general conditions and we look at how we are responding and how we want to steer Porsche in the future.
Ali: 2020 for boss character revised by the biggest product offensive Everett portion.
Ali: We completely renewed four of six model serious and launch them in the markets.
Ali: If we include the <unk> at the end of 2023, there were even five we currently have what is probably the most attractive and youngest product portfolio that Pasha has ever had.
Ali: We are receiving excellent feedback for the new products from our customers and why other media all over the world.
Ali: Porsche at its best.
Ali: Highly emotional combustion engines superior hybrid vehicles and extremely powerful electric vehicles.
Ali: With these three drive friends, we fulfill our customers' wishes.
Ali: Always with the aim of offering maximum driving pleasure.
Ali: Quality is our top priority.
Ali: We strive to work on improvements day by day.
Ali: The independent JD power study in 2024, we ranked first in our segment in the U S.
Ali: This motivates us.
Ali: We have also made further progress in the number of claims per week ago, and achieving historic best values at Porsche in 'twenty 'twenty four despite the many new launches.
Ali: Here too we fight for every detail.
Ali: Last year, we were more successful in the world's racetracks than ever before.
Ali: We want drivers title in the WEC and victory in all classes and the American EMS or and then Formula E. Pascal airline on the driver's World Championship for the partial works team.
Ali: We wanted to build on that this year, we got off a successful start with the first and third place. It's a 24 hours of Daytona.
Ali: The numbers show Porsche is in a robust position.
Ali: We can react dwell and flexibly to fluctuations in the markets in 2024 were only just below the previous year in terms of deliveries.
Despite the significant decline in China.
Ali: And despite the fact that as usual the new models will only be introduced dredge ela in all market variants and derivatives.
Ali: With the exception of China, we have achieved new records in all other regions of the world the.
Ali: The balance between the individual regions has also improved once again, making us less dependent on the individual markets.
Ali: The key financial figures reflect the high level of tensions.
Ali: Under which the entire automotive industry is operating.
Ali: And of course in the long term, we had porsche are pursuing higher ambitions.
Ali: We are sticking to that.
Ali: At the same time it wasn't exceptionally strong performance by the entire part of the team to deliver such a robust result under the current exceptional conditions.
Ali: I would go even further.
Ali: They are to be well you to distinctively stronger than in many successful years before in which we operated in a much more stable environment. Thank.
Ali: Thank you for this fighting spirit and its a great passion to get the best out of it.
Ali: Let's briefly summarize up to this point and look ahead to the current and upcoming years and are generally volatile political and economic environment. We continue to face three major challenges.
Ali: The structural market changed in China, which consequences for sales of our weekends from today's perspective in the long term.
Ali: The slower ramp up of electro mobility with a need for action in our product strategy.
Ali: And the 10 situations of supply change with consequences for the cost and availability of our products at the same time, we had Porsche are building on a solid foundation on some products and then almost complete a renewed portfolio on a while yellow brand with global appeal on a loyal customer base.
Ali: On the globe.
Ali: And on our financial robustness that we have built up over the years.
Ali: We are using this to invest resolutely and our future.
Ali: In doing so we are relying on our proven and successful portal strategy and.
Ali: In order to adapt it to the changed framework conditions, we have developed it extensively over the past year.
Ali: After all only a strategy that is regular Larry and pragmatic Kelly adapt it will be successful in the long term.
Ali: This allows us to respond to the new situations in the market with the greatest possible flexibility.
Ali: In particular, we have adjusted our product strategy in all segments, although the ramp up of Electromobility has slowed down in some regions. We continue to see E mobility.
Ali: Technology of the future.
Ali: We want to make it a success in the long term.
Ali: However, we currently anticipate a much longer transition phase F.
Ali: As before our product strategy includes a balanced range of combustion engines hybrids and electric sports cars.
Ali: We are expanding and extending our portfolio of combustion engines and hybrid models, we are consistently pursuing our electrification strategy.
Ali: We will also further strengthen our brand defense.
Ali: With an extensive expansion of our exclusive manufacturer and Susana bunch program.
Ali: We will remain true to our focus on special models and limited editions.
These have always generated a great deal of appeal.
Ali: Unit sales are still not a benchmark for us where you guys have a volume, especially in the current environment in which we operate.
Ali: This motivates us to make our company, even more robust and further reduce the breakeven point this means being even more independent of respective volume scenarios.
Ali: We are adapting our structures accordingly, we are reducing capacities and complexity at the same times, we are strengthening the exclusivity of our brands.
Johan Break: Johan break now will now guide you through the numbers in detail Johan Please it's up to you.
Oliver Blume: Oliver Thank you very much.
Speaker Change: It's my pleasure to present, you our financial year 'twenty to 'twenty four results.
Speaker Change: Our largest model offensive in the Companys history strongly influenced the business performance of the Porsche AG group.
Speaker Change: These mahyco ramp ups had a significant impact on sales inventories depreciation and amortization as well as research and development costs and Capex.
Speaker Change: In addition, the overall challenging economic and political environment.
Speaker Change: Lower transformation to electric mobility and market developments in China has had an impact on the business situation.
Speaker Change: Still the company was able to perform strongly under these conditions.
Speaker Change: We achieved a return on sales guidance as well as a cash conversion of more than 70%.
Speaker Change: Pasha sets ambitious goals every year not.
Speaker Change: Not just for model lines and derivatives or the old so far our sales regions and individual markets.
Speaker Change: However, the focus is not on pure sales volume, particularly on sales quality and balance demand and supply.
Speaker Change: In the financial year 2024 partial was robustly positioned in terms of vehicles sold despite various model changes and the challenging market situation in China.
Speaker Change: In total we sold 313000 vehicles.
This is 6% less than in 2023.
Speaker Change: Partially counteracted the decline in deliveries in China with an increased focus on sales in other regions.
Speaker Change: As a result, our global sales footprint has become even more balanced and more resilient.
Speaker Change: The <unk> was the best selling models series with more than 100000 vehicles, followed by the Mccann with 83000 vehicles sold.
Speaker Change: Of these 24000 units, where the new all electric mccahon.
Speaker Change: At the same time declines were recorded for the Thaicom, the Panamera and the 911.
Speaker Change: This is due to the current model changes.
Speaker Change: In addition, the ramp up of electric mobility has been slower than planned overall.
Speaker Change: Now, let's take a look at our incoming orders.
Speaker Change: <unk> remained robust in a challenging environment.
Speaker Change: And we have a decently field order book returning to normal levels. After the supply shortages of the previous years.
Speaker Change: Furthermore, we expect positive impact on orders and an additional positive pricing effect from our upcoming derivatives.
Speaker Change: Also the contribution coming from Individualization is expected to remain strong.
Speaker Change: Let's now take a look at our 2024 results.
Speaker Change: In a continuously challenging macro environment, we achieved solid results benefiting from our strong pricing mix and continued strong customer demand.
Speaker Change: We have kept executing our goals by strong teamwork and agility.
Speaker Change: Stringent with our strategy, we kept investing in product innovation software and brand.
Speaker Change: The poetry AG group revenue slightly fell to 40 billion euros in the 'twenty to 'twenty four financial year.
Speaker Change: This corresponds to a decline of 1% compared to the previous year.
Speaker Change: Increased pricing on the newly launched products continued focus on vehicle mix and individualization put us in a position to nearly compensate for the revenue shortfall from lower unit sales.
Speaker Change: In parallel the cost of sales rose by 800 million euros to $29 8 billion euros.
Speaker Change: Accordingly, the ratio to sales revenue rose by around 300 basis points to 74, 2%.
Speaker Change: This was mainly due to higher material costs as well as higher development work and ramp up costs in connection with the renewal of the model range.
Speaker Change: In 2024 again, we had to deal with higher DNA of more than 300 million euros compared to the previous year.
Speaker Change: In combination with the group sales revenues this translated into quite unfavorable fixed cost coverage.
Speaker Change: Selling expenses rose by more than 200 million euros to $3 1 billion euros.
And increased by 60 basis points to seven 7% in relation to sales revenues.
The increase is due to effects such as higher costs for strengthening customer oriented services and digitalization initiatives.
Speaker Change: In consequence, the operating result decreased accordingly from $7 3 billion to $5 6 billion euros.
Speaker Change: Porsche AG group's results reflects the most extensive product changeover offensive during a period of macro uncertainty and fragile ecosystems.
Speaker Change: <unk> partial was able to achieve its updated guidance on group return on sales and significantly over achieved its net cash flow margin targets.
Speaker Change: In the financial year 2020 for the financial result fell significantly to minus 400 million euros.
Speaker Change: The decrease is mainly due to the current earnings effect from equity accounted investments as well as special effects around batteries and connectivity.
Speaker Change: In consequence, the profit after tax decreased by $1 6 billion euros to three 6 billion euros in 2024.
Speaker Change: Earnings per ordinary share amounted to $3 94 euros.
Speaker Change: The earnings per preference share amounted to $3 95 euros.
Let's now focus on our automotive business.
Speaker Change: Here, we achieved revenues of $36 4 billion euros.
Speaker Change: Key drivers here were lower unit sales by 6%, partially offset by our focus on stringent pricing mix and individualized nation.
Thus, we were able to further increase automotive revenues per vehicle sold for 112000 to around 117000 euros.
Speaker Change: The automotive business earned $5 3 billion euros at a margin of 14, 5%.
Speaker Change: While price and mix had been quite supportive higher supply chain related costs as well as higher development and ramp up costs impacting the operating results negatively.
Speaker Change: Also higher DNA on capitalized R&D in connection with the renewal of the model ranch were a headwind.
Speaker Change: The net cash flow for the automotive segment was $3 7 billion euros.
Speaker Change: This figure includes cash outflows of 250 million euros in connection with pension plans funded by external plan assets.
Speaker Change: Here, we also benefited from a significant reduction of inventories, especially in relation to our launch activities.
Speaker Change: The resulting automotive net cash flow margin of 10, 2% was above forecast.
Speaker Change: In this context, let me draw your attention to the cash conversion of more than 70% again.
Speaker Change: Surely this is a reflection of our strong business model.
Speaker Change: Financial services revenue increased to $3 9 billion euros.
Speaker Change: The segment's operating profit decreased to 278 million euros in the 'twenty to 'twenty four financial year.
Speaker Change: The decline was mainly due to the valuation of interest rate hedging transactions and derivatives outside hedge accounting in the context of regular rate refinancing activities.
Speaker Change: As a result, the operating return on sales in financial services fell to seven 1%.
Speaker Change: With 39, 6% the penetration rate was a touch lower than last year.
Speaker Change: It is also very important to mention that the risk profile of our portfolio remains robust.
Let's now focus on our capital allocation in the financial year 2020 for research and development costs in the automotive segment amounted to $2 5 billion euros after $2 8 billion euros in 2023.
Speaker Change: The resulting R&D ratio was at six 9%.
The decrease in 2024 was influenced by an accounting reclassification.
Speaker Change: Capitalized research and development costs amounted to one 6 billion euros and were significantly below the comparable figure of $2 1 billion euros in 2023.
Speaker Change: Accordingly, the capitalization ratio was 63% is more than 10 percentage points lower than in 2023.
Speaker Change: The depreciation and amortization of capitalized automotive development costs amounted to $1 1 billion euros.
Speaker Change: Almost 200 million euros higher than in 2023.
Speaker Change: Based on the drive of stress outlined the total automotive research and development costs accounted for in the P&L. We're at 2 billion euros more than 300 million euros higher compared to the previous year.
Speaker Change: This also underlines the strength of our 'twenty 'twenty four results with the current environment.
More than half of R&D expenditure in the reporting period for spend for the conversion of the product range towards Electromobility.
Parallel to the efforts in the field of electro mobility model series with combustion engine or plug in hybrid technology are also being further developed.
Speaker Change: At the end of 2024, our automotive net liquidity was at $8 6 billion euros.
Based on our strong cash flow and a very healthy balance sheet, the executive board and the supervisory board will propose a dividend payment of $2 1 billion euros for the past financial year to the annual General meeting.
Speaker Change: That's $2 30 euros per ordinary share and $2 31 euros per preference share that has now moved to the outlook for 2025.
Speaker Change: Our forecast for the financial year 2025 is based on todays framework conditions in terms of global conflicts and tensions as well as fragile supply change.
Speaker Change: In addition, we do not expect demand in China to recover in the foreseeable future and the transformation towards electric mobility remains behind previous expectations.
Speaker Change: Based on our brand principles, we will also continue to align demand and supply according to our value over volume approach.
Speaker Change: Overall, the pulse energy group expects vehicle sales to be below 2024.
Speaker Change: As part of its 2025 sales forecast the company expects a share of purely battery powered vehicles of up to 20% to 22%.
Speaker Change: In the forecast for the financial year 2025. It is also assumed that the situation in the supply chain, but remain challenging and that additional cost in the supply area must be expected.
Speaker Change: This is due to individual delivery delays fluctuations in the number of units and possible insolvencies.
Speaker Change: In addition, we expect a significantly higher expense R&D, resulting from higher R&D budget, a lower capitalization rate and higher DNA on capitalized R&D due to our product and strategic measures.
Speaker Change: Oliver had previously explained our strategy.
Speaker Change: This is closely linked to our ROE to 20 program, which has to be understood as the foundation for our so called strategy House and applies across the board to all its elements.
The road to 'twenty is our continued strategic program targeting all aspects of the company.
Speaker Change: <unk> enables the general strategic long term ambition level of an operating return on sales of more than 20%.
Speaker Change: To this end we have defined specific targets in six fields of action, which include fixed costs cost of goods sold for series cars and cars under development as well as sales levers including pricing.
Speaker Change: And on <unk> in 2025, our activities will be intensified.
Speaker Change: Against the backdrop of the changed and challenging market environment extensive measures have been initiated to strengthen the company's financial resilience and profitability also in the short and medium term.
Speaker Change: These measures include the expansion of the product portfolio to include additional models with combustion engines or plug in hybrids.
Speaker Change: The expansion of the Zander Wood program and exclusive manufacturer and the adjustments to the company organization.
Speaker Change: As you know from our AD hoc announcement, the total impact of these combined measures on the operating profit and the automotive net cash flow is expected to amount to approximately 800 million euros. This year.
Speaker Change: Around 300 million euros of this burden are related to products exclusive and software.
Speaker Change: Around 200 million euros are attributable to battery related activities.
Speaker Change: This mainly result from the first time consolidation of pulse businesses around batteries.
Speaker Change: Namely the Sofas group.
Speaker Change: V for smart.
Speaker Change: The remaining 300 million euros are related to the organizational changes, which also cover the announced workforce measures.
Speaker Change: As you know we have initiated to rescale, our cost structure to approximately 250000 vehicles per year, but having said that let me emphasize again, we are talking about our cost structure and not about targeted sales volume.
Speaker Change: With this initiative. It is also clear that we have to increase our financial resilience also in terms of personal costs.
Speaker Change: Among other things, partially also expects to cut around 3900 dropped positions until 2029.
Speaker Change: 2000 of them being expired and expiring fixed term contracts.
Speaker Change: In order to do so we will use demographics and socially acceptable measures.
Speaker Change: In addition to these immediate measures management and works Council will negotiate and additional structural package in the second half of the year.
Speaker Change: We want to use this to make the company, even more efficient and resilient in the mid and long term.
Speaker Change: First benefits are expected to support a result, and cash flow from next year onwards.
Speaker Change: In this context that we also give some more color on our software activities.
Speaker Change: Regarding our future flexible and attractive product portfolio possible benefit in its software development from synergies with other brands of the Volkswagen Group.
Speaker Change: As well as other partnerships.
Speaker Change: Key goals in the development of our software architectures are the special customer experiences the optimization of cost effectiveness as well as time to market launch.
Speaker Change: The development of the software platforms is based on clearly defined responsibilities among the brands.
Speaker Change: In the case of best we are working in a partnership with Volkswagen <unk> joint venture.
Speaker Change: For a software project as well as for product and exclusiveness, we budgeted significant on top investments.
These are based on the adjustment of the product strategy and the cycle plan.
Speaker Change: In order to a fault. These adjustments we have re prioritized projects and set aside some additional spending.
Speaker Change: Thus total spending stays at the current level.
Speaker Change: We are still targeting an overall lower combined R&D and capex spend in following years.
Considering the above mentioned factors positive forecast for the financial year 2025 group sales revenues of 39 to 40 billion euros.
Speaker Change: Group return on sales between 10, and 12% and <unk>.
Speaker Change: And automotive net cash flow margin between seven and 9%.
This guidance does not include any potential tariff scenario.
Speaker Change: In Q1 25, we will also continue to follow our value over volume strategy.
Based on our current assumptions, we will have a slow start into 2025.
Speaker Change: That's now also look at 2026.
Speaker Change: We must assume that are company specific framework will be in bus by the challenging geopolitical framework the slower than expected Bev transformation and the related persisting on top costs in our supply chain.
Speaker Change: On the other hand, we expect support from a better sales mix, resulting from an improved product availability.
In addition, we expect the first benefits from our organizational adjustments.
Speaker Change: As such we target an improved profitability compared to 2025.
Speaker Change: With respect to our future sales footprint, we do not expect a significant recovery of the demand in China.
Instead, we assume that the importance of our other regions will further increase.
Speaker Change: Our strategy in China is directed to safeguard and restore the profitability through our value over volume oriented product and service offering as well as a clear brand and customer focus.
Speaker Change: At the same time the substantial changes in demand in China require continues and dynamic right sizing of our dealer network to match market needs.
Speaker Change: Here, we plan to reduce the number of points of sales from 144 to around 100 in 2027.
Speaker Change: We would also realign our local organization to the new conditions.
Speaker Change: Based on our expected benefits from our ROE to 20 program the outlined expectations for the Chinese market that requires higher flexibility for the expected transition period in markets and expected continued fragile supply chains, we target a group return on sales of 15% to 17% in the midterm.
Speaker Change: This does also not include a tariff scenario.
Speaker Change: However, our general strategic ambition remain spotty.
Speaker Change: And the more favorable and stable worldwide conditions strategic return of 20% remains the general reach for our desirable brand.
Speaker Change: However in view of the extensive measures and the expected framework conditions. We are talking about the 20, <unk> and it would be premature to give an exact year for this now.
Speaker Change: Our expected strong cash conversion and future cash flows should provide us with a strong foundation to partly fund our pension deficit in the midterm.
Speaker Change: With respect to automotive net liquidity with target to keep a position of 15% to 20% of automotive revenues.
Speaker Change: In combination with a strong cash conversion this should enable us to keep our dividend payout target of 50%.
Speaker Change: During this transition period and thereafter financed partially will play a crucial role as co pilot and driving strategic success by providing data driven insights, ensuring our financial discipline and enabling informed decision making.
Speaker Change: Thus contributing to the long term success of Porsche.
Speaker Change: With that I hand over to Oliver Blume, Matt. Thank you very much.
Johan Break: Thank you very much Johan.
Speaker Change: Porsche set standards in Electromobility at an early stage with a design as well as the characteristics.
Speaker Change: There's no doubt about it.
Speaker Change: We are inspired thousands of customers around the world.
Speaker Change: After a strong start up phase it has now become clear.
Speaker Change: We were a step ahead of market developments.
Speaker Change: Global rapid and above all sustainable ramp up has not yet materialized. We have taken this as an opportunity to revise our product planning and specific areas allow me to give you a brief overview.
Speaker Change: One area of work was to further strengthen our brand car with additional combustion engine models.
Speaker Change: Our fans can look forward to new top derivatives of the 911, our igen. This also reviving the legendary style off the 19 seventies and early eighties and a limited small serious from partial exclusive manufacturer another collector's item from our design Heritage series.
Speaker Change: Alongside Theres no product approaches in the core segment of Tudor Sportscar, we will be expanding the 911 range with a model that will raise the bar even higher.
Speaker Change: Our fence will be delighted.
Speaker Change: For the photo sports costs, we're extending the face of parallel drivetrains.
Speaker Change: For example, we will continue to develop and offer the Cayenne and Panamera has combustion and hybrid vehicles well into the 20th thirties.
Speaker Change: We are also considering expanding our portfolio.
And the SUV segment, we are examining a new model of serious that could be launched towards the end of the decade also with pure combustion and hybrid drive.
Speaker Change: Clearly differentiated from them, a con, which we plan to offer exclusively as an all electric model.
Speaker Change: At the same time, the Pasha electric family will continue to grow as planned.
Speaker Change: We are convinced that the electric drive is a superior most efficient technology.
Our focus in further development is on fast travel and fast charging.
Speaker Change: This is where we combine best in class driving dynamics charging efficiency and recuperation performance.
Speaker Change: An important component of our balanced portfolio, it's a KN with all three drive types. The fourth generation is in the starting blocks completely redevelop and redesigns.
Speaker Change: And without giving too much away like taken in Mccann before electric.
Speaker Change: Electric Cayenne will be a true sports car that was set standards and its segments.
Speaker Change: In the medium term our customers can also look forward to a fully electric sports car as a $7 18 segments.
Speaker Change: Even more dynamic even more powerful as a pure driving experience.
Speaker Change: Of course, these adjustments and product planning have an impact on the bev ramp up as a whole.
Speaker Change: Porsche had one of the most ambitious plans in the entire industry with a goal of delivering more than 80% fully electric sports cars by 2030.
Speaker Change: Our product strategy, what's still allow for this in view of the market developments. However, this is no longer realistic.
Speaker Change: Our ramp up will therefore adept to market developments in general, but we remain ambitious.
Speaker Change: In 2024, 27% of the weekends, we delivered were electrified already almost half of them pure electric vehicles, the rest plug in hybrids.
Speaker Change: Our portfolio aims to significantly increase this propulsion over the next few years.
Speaker Change: In addition to the product range the actual ramp up depends largely on the structural development of electric mobility in the markets.
Speaker Change: Charging infrastructure energy prices incentive systems, and regulatory conditions have a significant influence.
Speaker Change: We have revised our decarbonization program in light of the changed framework conditions and the dynamics behind them I just mentioned.
Speaker Change: And I would like to emphasize this.
Speaker Change: Climate protection is important to us and we continue to pursue the goal of making our contribution to reducing cotwo emissions.
Speaker Change: In 2024, we achieved our decarbonization targets.
Speaker Change: However, it is also clear that sustainability is and remains a joint task for business politics and consumers.
Speaker Change: Regardless of the type of drive at Porsche, we fulfill our customers' dreams and ratios no matter how individual they may be.
Speaker Change: Potter already of us almost infinite possibilities for individualization.
Speaker Change: Our range extends from the selection of individual interior and exterior options to completely customized one offs.
Speaker Change: Today, we offer more than 1000 exclusive manufacturer options across all model ranges we.
Speaker Change: We were able to double the average sales per weikle with exclusive manufacturer options. In this period from 2019 to 2023, and then 2024 it increased by a further 7%.
Speaker Change: We are already building sports cost in the exclusive manufacturer on behalf of customers without the selected options exceeds the original weigle well you buy many folds.
In line with our customer's wishes will be significantly expanding our capacities in the coming years. This applies to both the exclusive manufacturer options and our <unk> program. We are planning to triple the number of vehicle projects in the area of <unk> we.
Speaker Change: We will also be expanding our zonal wounds experienced worldwide.
This is a tailor made experience for example during vehicle delivery and the historic planned one here in southern housing will play a central role in this.
Speaker Change: Let's summarize everything briefly and concisely.
Speaker Change: <unk> achieved a solid result in 2024 and a challenging environment.
Speaker Change: $5 6 billion euros operating profit, 14.1% return net cash flow almost at the level of a record year 2023.
Speaker Change: The dividend proposal at the same level of 2023 attractive for our investors.
Speaker Change: We have achieved record sales in four of our five sales world regions and renewed five of our six small serious with introduction of new products in the markets.
Speaker Change: The electrification right was a strong 27% with a clear upward trend towards the future.
Speaker Change: The 'twenty 'twenty four motorsport season was one of the strongest ever in the history of portion.
Speaker Change: We have adapted and further developed our corporate and product strategy to the changed environment and made two new appointments to the executive Board.
Speaker Change: In the medium term, we are aiming for a return of 15% to 17% and in the long term we are sticking to our general ambition of aiming for a group operating return on sales of more than 20%.
Yamana: Yamana said it we are deliberately used the year 2025 to further develop Porsche in a targeted manner.
Yamana: To recalibrate to rescale, our product planning, but also our company itself.
Yamana: This will cost more money in the short term and at a time that is already challenging.
Yamana: We do that on purpose because we are convinced that we are setting the right course and the long term.
To further and shop, our brands to make our products, even more individual even more exclusive and even more desirable.
Yamana: No substitute.
Yamana: There is Porsche.
Yamana: And it will stay that way.