Porsche Holding Salzburg achieves a new revenue record of 29.4 billion euros in the 2023 financial year

• Sales of new cars up 13.9% on previous year with 747,700 vehicles
• Sales of used cars/vehicles increased to 212,400 units (+12%)
• Broad strategic position with 527 dealerships worldwide
• Number of employees in 29 countries increased to 35,900 (+3.0%)
• Overall situation remains challenging in 2024 due to economic uncertainties and increase competition

Salzburg, 26 March 2024 - Porsche Holding Salzburg remains robust even in volatile times - despite geopolitical unrest, an economic downturn accompanied by rising prices and persistent inflation as well as reluctance on the part of private consumers to spend. The automotive distribution company based in Salzburg, which operates in 29 countries worldwide and on three continents, closed the past automotive year successfully and profitably, achieving a new record high for the third year in a row following the decline in 2020 due to the coronavirus pandemic. Revenue rose to 29.4 billion euros compared to the same period last year, representing a significant double-digit percentage increase (+14.1%).

"Although the initial conditions for another record year were anything but favourable, we managed to deliver once again in the past automotive year. Our success is based on a robust business model that enables us to balance out regional fluctuations, decades of experience in constantly changing markets and a clear strategy that we adhere to consistently", says Dr Hans Peter Schützinger, CEO of the Porsche Holding Management Board.

Porsche Holding Salzburg was able to increase new car sales in wholesale and retail trade to 747,700 vehicles (+13.9%); sales of used cars/vehicles also saw positive development with 212,400 units sold (+12%). The number of dealerships fell slightly to 527 due to network optimisation, while the metropolitan strategy focusing on premium and luxury brands was continued. The number of employees in the 29 countries grew to 35,900 worldwide (+3%), partly as a result of new acquisitions in retail.

"Rapid and consistent reduction of our order backlogs meant that we were able to capitalise on the momentum in the market in all areas and make strong gains. To achieve this, we rely above all on committed employees who prioritize customers and their needs consistently in their daily work in the different markets and companies. That's precisely what we have, and we owe them a special thank you", says Dr Hans Peter Schützinger.

Further significant steps were taken at the same time towards implementation of the 'evolve 2030' strategy. Porsche Holding Salzburg was able to continue on its chosen path of transformation and drive forward topics with strategic focus, such as electrification, digitalization, internationalisation, sustainability and acting as a reliable employer.

Austria, Germany and China highlight their ability to create added value.

Alongside its employees' willingness to go the famous extra mile, another major asset of Porsche Holding Salzburg is that it covers the entire value chain in automotive sales - from wholesale and retail through to financial services and information technology/IT.

Porsche Holding Salzburg was able to increase its global sales of new cars in the wholesale business to 342,400 vehicles compared to the previous year (11.4%). With the exception of the overseas markets, 17 of the 20 wholesale markets managed to record an increase. Revenue grew by more than a fifth to 11.4 billion euros (+21.2%); the company's home country of Austria remains the strongest market in terms of revenue with a share of 37%. The number of employees working in the wholesale area has risen to 3,981 (+1.7%).

Despite volatile political and economic conditions in individual regions of the world, the Salzburg-based automotive retail business also recorded strong growth in the retail sector, delivering a total of 394,800 new vehicles (+16.5%); at the same time, revenue grew to 20.7 billion euros (11.7%). The strongest market in terms of revenue in 2023 was Germany with 4.8 billion euros and an increase of 22.5%; the strongest growth market prior to this of China declined for the first time due to strained general conditions with revenue of 3.4 billion euros (-14.9%).

Almost 10,400 new cars (+4%) were additionally sold in Chile, Singapore and smaller CEE countries for example in the retail sector.

Porsche Holding Salzburg has a broad-based strategic position with 527 retail locations worldwide, even if this number has fallen slightly due to network optimisations (-4). The metropolitan strategy focusing on premium and luxury brands was also successfully continued in 2023. This enabled some blank spots on the dealership map to be closed, e.g. in the core market of Italy, including in Bolzano, with five dealership locations in China also integrated into the sales and distribution network.

The Porsche Bank Group further expanded its leading position over the last year as a mobility financial services provider, with more than 2 million contracts in its portfolio by the end of 2023 (+1% growth). The consolidated balance sheet total of the Porsche Holding subsidiary, which has 1,516 employees in 15 countries, is 7.6 billion euros. Around 46% of all Volkswagen Group vehicles delivered by Porsche Holding Salzburg are financed by the Porsche Bank Group.

Porsche Informatik has continued its path of growth with the opening of 'Digilab Italia' in the Italian city of Verona and now operates IT locations in five countries. With more than 950 software developers and IT specialists, it has provided 1.2 million software development hours and offers 180 customised software solutions for the automotive wholesale and retail sectors as well as for financial services. Around 30% of its services are provided for the Volkswagen Group.

MOON POWER more than doubled its revenue to 50 million euros in 2023 with sustainable, intelligent and data-driven energy solutions. With around 60 employees, the Salzburg-based company operates in 24 markets and provides solutions for charging infrastructure and energy management across different brands to the market, thereby acting as an enabler for e-mobility. MOON POWER is represented by its own separate companies in Austria and Germany.

Outlook for the 2024 financial year

"We are confident about the future, despite the continuing slowdown in the economy, economic uncertainty among consumers and more intensive competition. The record year of 2023 and the successful start to our consolidation and transformation programme provides momentum to us for the current financial year", says Dr Hans Peter Schützinger, adding: "We are optimistic that we will also be able to match last year's result in 2024. We see the glass as half full and not half empty. Incoming orders in the first few weeks also show that there is a general desire to buy cars and a need for replacements in the markets."

Focus on value-creating growth

"Even though we are able to build on a robust business model, we still need to position ourselves even more effectively and with greater flexibility. This is because 2024 will be another challenging year. Value-creating growth and efficient business management clearly take precedence over short-term and unsustainable success and market shares. We are investing heavily at the same time in innovation, digitalization and sustainability - and in the people who work for us", says Dr Hans Peter Schützinger.

He adds: "2024 is also a significant year of transition for the automotive industry - including therefore also for the automotive retail trade globally. We are focusing on innovative products and services focused around the customer. The need for individual mobility solutions continues unabated. We are able to meet the demand perfectly with the Volkswagen Group brands. Our customers can choose between efficient combustion engines, powerful plug-in hybrids and purely electric models.

Focus remains on sustainability and e-mobility
E-mobility will remain a growth market in the future, despite the current slower ramp-up and increased price pressure driven by increased competition, especially from China. "We remain committed to our ambitious targets, particularly when it comes to sustainability and e-mobility, and want to increase sales of electric models even further, depending at all times of course on customer demand and developments in the markets", says Dr Hans Peter Schützinger.

Key figures at PHS for the year 2023

Consolidated revenue            29.4 billion euros (+14.1%)

New cars                                747,700 (+13.9%)

Used cars                               212,400 (+12%)

Dealerships                            527 (-4)

Employees                             35,900 (+3.0%)