Porsche 2009 Annual Report Download - page 230

230 Financials
4.2.2 Stock price risk
Stock price derivatives were entered into in connection with the plans to increase the share
in Volkswagen AG in the past. The derivatives comprise stock options. Based on a historical simula-
tion of the last 360 days and a retention period of 10 days and confidence level of 95% and based
on fair values, the value at risk for stock price derivatives amounts to €65 million for continuing
operations (prior year: €1,237 million).
At the prior-year reporting date Porsche SE was in the latter stage of negotiations about
the sale of significant volumes of stock options. The sale shortly after the reporting date led to a
strong decrease in the value at risk from stock price hedging performed in the comparative period.
Taking into account the sale that took place after the reporting date, it amounted to €175 million
for continuing operations as of the prior-year reporting date.
4.2.3 Risk from put and call options relating to the remaining shares in
Porsche Zwischenholding GmbH
The market price risk is due to fluctuation in the enterprise value of Porsche Zwischenhold-
ing GmbH. It affects the measurement of the put and call option and consequently their measure-
ment in the balance sheet as well as the profit or loss reported in the income statement. The risk
due to fluctuation in the enterprise value is determined by means of a sensitivity analysis.
If the enterprise value as of 31 July 2010 had been 10% higher, profit would have been
€132 million lower. If the enterprise value as of 31 July 2010 had been 10% lower, profit would
have been €133 million higher.
The executive board’s assessment of the probability of occurrence of the conditions also
has an influence on the carrying amount of these two options. A change in the assessment of prob-
ability of occurrence would increase/reduce the carrying amount and impact the Porsche SE
group’s results of operations accordingly. Reference is made to our explanations in the forecast
report as part of Porsche SE’s group management report.
This is partially offset by the accounting for the investment in Volkswagen AG at equity, as
the accounting for the options at the level of Volkswagen AG has the opposite effect on the pro rata
profit/loss attributable to Porsche SE.