Porsche Unveils Strategy Through 2035, Targets 15% Long-Term Operating Return

(RTTNews) - Dr. Ing. h.c. F. Porsche AG (P911.DE, P911.HM), an automotive and financial services business, on Wednesday presented its new "Sportwagenschmiede '35" strategy through 2035 at its Capital Markets Day.

The company targets medium-term Group sales of 41 billion euros to 45 billion euros, a Group operating return on sales of 10% to 15% and an Automotive net cash flow margin of 9% to 12%.

Porsche targets a long-term Group operating return on sales of 15% and an Automotive net cash flow margin of 12%.

The company plans to lower its break-even point to below 200,000 vehicles through cost reductions and a leaner organisation.

Porsche plans to reduce its overall workforce by 25% in the medium term, with a strategic target of 30%, while management positions are expected to decline by 40%.

The company plans to increase the average selling price of its top-range models by about 20% and expand its presence in higher-margin D and E segments.

Porsche expects investment and research and development spending to decline significantly in the medium term following the expected peak in 2026.

The company plans to launch at least one brand-defining new product annually by 2030, including new 718 models and a new B-segment SUV.

Porsche also targets a dividend payout ratio of at least 50% of consolidated net income.

Dr. Ing. h.c. F. Porsche AG is 0.52% lesser at EUR 42.31 on the XETRA.