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Oliver Blume, Chairman of the Executive Board, Porsche AG and Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board, Finance and IT

Porsche achieves sustainable growth in 2020 financial year

Stuttgart. Porsche AG set a new revenue record in the 2020 financial year: its value grew to 28.7 billion euros, surpassing the previous year’s figure by more than 100 million euros. The operating result is 4.2 billion euros. The previous year it was 4.4 billion euros before special items and 3.9 billion euros after. The return on sales was 14.6 percent in 2020, within the strategic target corridor despite the tense economic situation. The strong figures from 2019 were thus only barely missed, despite a temporary shutdown of production. In total, Porsche delivered more than 272,000 vehicles to customers worldwide. This is just three percent less than the previous best year, 2019. The profit before tax was 4.4 billion euros, an increase on 2019.


“The financial year 2020 was successful for Porsche – despite challenging circumstances,” emphasises Oliver Blume, Chairman of the Executive Board of Porsche AG. “There are four reasons for this: our attractive product range, convincing electric models, our brand’s innovative strength and the determination with which we approached our crisis management. More than 20,000 units were delivered of the Taycan, the first all-electric Porsche sports car. This makes it the most successful electric sports car in its class. More than 50 international awards attest to this. Among other things, the Taycan was named the ‘world’s most innovative car’. Porsche stands for a robust core business, sustainable action, social responsibility and innovative technologies.”

“We’re very proud of our business figures,” says Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT of Porsche AG. “Despite the numerous challenges, we achieved our strategic target corridor with an operational return on sales of 14.6 percent.”

According to Lutz Meschke, the fact that such record figures were achieved despite the difficult global situation was made possible by a very swiftly established cost and liquidity management system. “Our top priority in the crisis was liquidity. We needed to reduce all costs that were not absolutely necessary.” At no stage did Porsche lose sight of its long-term strategic direction. “We didn’t scrimp at all when it comes to the future topics. We continue to proceed at full speed on transformation, digitalisation and electrification. Attempting to economise in these areas will very quickly result in a loss of competitiveness. Our cost and liquidity management provided a benchmark. We protected our business so we can get going again at full steam once the crisis ends.”


Honing of the profitability programme

With this in mind, Porsche once again honed its ambitious “Profitability Programme 2025”. “Our new goal is to support our result cumulatively by 10 billion euros by 2025, and by 3 billion euros per year after that,” says Lutz Meschke. “The most important thing about our profitability programme is that it’s not just a savings plan, it’s also a programme of innovation. It’s not about cutting costs. It’s about intelligently optimising all of our processes and developing new business ideas.” In a difficult market environment, Porsche has kept the number of employees constant at around 36,000. “No employee needs to be concerned. We concluded a job security agreement that guarantees the jobs of our core workforce until 2030,” says Lutz Meschke. “We’re not cutting any jobs or getting rid of any subsidiaries. On the contrary, we’re investing in our employees and in our future. This is paying off: Porsche increased its efficiency further and lowered its profit threshold. From this position we want to achieve our strategic goal of an operational return on sales of 15 percent in 2021 as well, despite the difficult economic situation.” As in the previous years, Porsche shared the company’s bounty with the workforce. For 2020, the voluntary bonus is 7850 euros.

Porsche targeting a CO₂-neutral balance sheet for 2030

In the face of continuing climate change, Porsche AG set itself another ambitious target: “Sustainability is an important part of our Strategy 2030 – holistically: economically, ecologically and socially,” says Oliver Blume. “We launched a comprehensive decarbonisation programme with a firm target in mind: Porsche wants to have a CO₂-neutral balance sheet throughout the entire value chain by 2030. We will achieve this by systematically avoiding and reducing CO₂ emissions. All of the major sites like Zuffenhausen, Weissach and Leipzig have been CO₂-neutral since 2021. We’ve earmarked more than a billion euros for decarbonisation over the next 10 years. We’ve reached the first milestone: the Taycan Cross Turismo, which had its world premiere at the beginning of March, is the first vehicle that will be CO₂-neutral throughout the use phase.”

In 2020, a third of all Porsche vehicles delivered in Europe were fully or partially electric; worldwide it was 17 percent. In 2025, half of all new Porsche vehicles sold will have an electric motor; in 2030, more than 80 percent of the new vehicles will be electric.

For Porsche, socially responsible action also comes under the umbrella of sustainable management. In keeping with this, the company launched its “Porsche helps” programme during the pandemic. It saw countless employees give their time or money to charitable projects. To mitigate the effects of the pandemic, Porsche topped up its donations by 5 million euros, while food donations to the Tafel organisations were doubled.

Robust delivery performance

When it comes to deliveries, Porsche benefited from its strong global positioning. The number of sports cars delivered to customers remained largely stable. The greatest demand was for the Cayenne, with 92,860 units delivered. This is an increase of one percent compared with the previous year. A total of 20,015 units of the Taycan were delivered in 2020 – despite the six-week production shutdown in spring that coincided with the start of production of the new model as well as numerous market premieres. China remains the largest single market: Porsche delivered 88,968 vehicles to Chinese customers in 2020 – an increase of three percent compared with 2019. The Asia-Pacific, Middle East and Africa regions also continued to show positive growth overall, with 121,641 vehicles delivered there in 2020. This was a four percent increase compared with the same period in the previous year. Porsche delivered a total of 80,892 vehicles in Europe. In America, this number was 69,629.

LVMH completes the acquisition of Tiffany & Co

LVMH completes the acquisition of Tiffany & Co.

LVMH Moët Hennessy Louis Vuitton SE, the world’s leading luxury products group, announced today that it has completed the acquisition of Tiffany & Co. (NYSE: TIF), the global luxury jeweler. The acquisition of this iconic US jeweler will deeply transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Maisons.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, commented: “I am pleased to welcome Tiffany and all their talented employees in our Group. Tiffany is an iconic brand and a quintessential emblem of the global jewelry sector. We are committed to supporting Tiffany, a brand that is synonymous with love and whose Blue Box is revered around the world, with the same dedication and passion that we have applied to each of our prestigious Maisons over the years. We are optimistic about Tiffany’s ability to accelerate its growth, innovate and remain at the forefront of our discerning customers’ most cherished life achievements and memories. I would like to thank Alessandro Bogliolo and his team for their dedication to Tiffany and their work over the past three years, especially during this challenging period.”

Tiffany Executive Leadership

In conjunction with the closing of the transaction, LVMH has announced several leadership appointments at Tiffany:

  • Anthony Ledru, previously Executive Vice President, Global Commercial Activities at Louis Vuitton and formerly Senior Vice President of North America at Tiffany, becomes Chief Executive Officer of Tiffany, effective immediately.
  • Alexandre Arnault, previously Chief Executive Officer of high-quality luggage company RIMOWA, becomes Executive Vice President, Product and Communications of Tiffany, effective immediately.
  • Michael Burke, the Chairman and Chief Executive Officer of Louis Vuitton, will become Chairman of Tiffany Board of Directors.

Leadership Transitions

  • Alessandro Bogliolo, the current Chief Executive Officer of Tiffany, has agreed to remain with the company to facilitate the transition through January 22, 2021, after which time he will depart the company.
  • Reed Krakoff, Chief Artistic Director, and Daniella Vitale, Executive Vice President and Chief Brand Officer of Tiffany, will depart Tiffany after a short transition of responsibilities.

Anthony Ledru, Chief Executive Officer of Tiffany, said: “I am delighted to re-join Tiffany, the most iconic American luxury brand which I have long admired. The inclusiveness and optimism upon which Tiffany was founded resonate now more than ever. I also come back to a Maison that is at the forefront of the environmental and sourcing standards in its industry. Going forward, I have deep confidence in LVMH’s commitment to protect the brand, drive its growth strategy and apply the highest standards of retail excellence to Tiffany. The potential ahead is limitless, and I look forward to writing this next deeply promising chapter, along with the 14,000 Tiffany employees around the world.”

Alessandro Bogliolo, former Chief Executive Officer of Tiffany, commented: “I am honored to have led Tiffany as a public company and contributed with such a talented team to further strengthening Tiffany’s iconic standing. Thanks to the hard work and commitment of all our team members, Tiffany is ideally positioned to continue its growth. I would also like to take this moment to thank Reed and Daniella for having led the creative vision, digital and marketing direction for the company. We can all be proud of what we achieved together over the past three years and, I am convinced that Tiffany will thrive under LVMH leadership. I look forward to ensuring a smooth transition to Anthony and his team and wish him and all the Tiffany community continued success in the years to come.”

Leadership Biographies

  • Anthony Ledru has more than 20 years of experience in the luxury industry. He was the Executive Vice President of Global Commercial Activities at Louis Vuitton since 2017, which he joined three years before as President & Chief Executive Officer of Louis Vuitton Americas. Prior to that, he was Senior Vice President of North America at Tiffany & Co. between 2013 and 2014 and served as Global Vice President of Sales for Harry Winston International. He started his career in the luxury sector working for Cartier between 1999 and 2011, first in Latin America and then in the United States. where he was Vice President of Retail for the company’s North American business. Anthony Ledru holds a master’s degree from SKEMA Business School.
  • Alexandre Arnault has led RIMOWA since January 2017, after initiating and leading its acquisition by LVMH. His professional career began in the United States in strategic consulting, at McKinsey & Company, then in private equity at KKR in New York. He then joined LVMH and Groupe Arnault to focus on digital innovation. In this capacity, Alexandre Arnault participated in the definition and implementation of a strategy to address the challenges of the development of e-commerce in the high-quality products sector. Over the past four years, he has successfully repositioned RIMOWA and elevated its brand image. Alexandre Arnault graduated from École Telecom ParisTech and holds a master’s degree from École Polytechnique.

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Fernando Salazar Palma – Executive President CESCE

Fernando Salazar is a Commercial Technician and State Economist, with a degree in Economics and Business Administration and a Master’s in Public Administration (Fulbright scholarship at the Maxwell School of Public Affairs, Syracuse University. New York). With a broad professional career, he has been, since 2016, Deputy Director General of Financial Promotion of Internationalization. Previously, he was Chief Advisor in the Economic and Commercial Office in Brasilia between 2012 and 2016, a position he arrived at from ICEX where he was Executive Vice President of the Spanish Institute of Foreign Trade (ICEX) between 2010 and 2011.

Also within the General Administration of the State, The new president of CESCE, has held various management positions in the field of trade policy and multilateral financial institutions: he has been Chief Counsel in the Economic and Trade Office of the Spanish Embassy in Beijing, China (2007-2010), Chief Cabinet of the Secretary of State for Tourism and Trade (2004-2007) of the Ministry of Industry, Commerce and Tourism of Spain, Advisory Member in the General Sub-Directorate of Financial Promotion of Export (2002-2004) of the Ministry of Economy of Spain, Consultant at the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) (1998-2001), Deputy Deputy Director General for Trade Policy Mult ilateral (1992-1994) and Territorial Director of Commerce in Castilla y León (1991-1992). Good connoisseur of the business and operation of CESCE, a company in which he has been a member of the Board of Directors on two occasions, the first between 2004 and 2007 and the second from 2016 to the date of his appointment as Chairman.

Thierry Kartochian, Executive Vice President & Chief Financial Officer Porsche Cars North America, Inc.

Thierry Kartochian is Executive Vice President and Chief Financial Officer of Porsche Cars North America, Inc. (PCNA) headquartered in Atlanta. PCNA is the exclusive U.S. importer of the Porsche 911,718 Boxster and 718 Cayman; Panamera; and Cayenne and Macan.

Kartochian entered the role of Executive Vice President and Chief Financial Officer in July 2010. He is responsible for Finance, IT services, Procurement, Facilities Management and Human Resources. He further serves as President of Porsche Enterprises, Inc., the holding company for Porsche in North America.

Before assuming his current position at PCNA, Kartochian served concurrently as Executive Vice President and Chief Financial Officer for both Porsche Business Services (PBS) and Porsche Financial Services (PFS) in Chicago. His responsibilities included executive management of PBS, which provides shared services for PCNA and other Porsche entities in North America. As CFO of PFS, he was responsible for various financial services for Porsche’s North American operations, including both the U.S. and Canadian markets.

Prior to joining PBS and PFS, Kartochian built 19 years of industry experience within the Porsche Group, including a nine-year stint as CFO and HR Director of Porsche France Group where he was responsible for all Finance, IT, legal and HR activities. He began his career at Porsche AG in Stuttgart, Germany, in 1991 as a controlling analyst.

Kartochian holds an M.B.A. from E.S.S.E.C. Business School in Paris.