Porsche 2009 Annual Report Download - page 232

232 Financials
loss would have been €57 million lower. If market interest rates had increased by 100 base points as
of 31 July 2009, profit or loss would have been €57 million higher.
4.3.1.3 Investment risk from asset management
The Porsche Zwischenholding GmbH group had invested part of its cash and cash equiva-
lents in special securities funds as of the prior-year reporting date and in the reporting period until
the date of deconsolidation of the discontinued operations. Here too, investment policy complied
with the basic principle that investment security takes clear precedence over any attempt to secure
an unusually high return on investment. With a retention period of 30 days and a confidence level of
95%, the value at risk for the investment risk came to €1 million in the prior year.
4.3.2 Market risk in the financial services division
In the financial services division of this discontinued operation, the interest risk was mini-
mized by using suitable business models or interest swaps to offset the burdens of financing and
refinancing as far as possible. In this division, there was therefore no material risk due to interest
rate fluctuations in the prior year and in the reporting period until the date of deconsolidation of
discontinued operations. The business activity of the financial service companies takes place in
their local currency area, which is why the currency risk was not material.
4.4 Prior-year market price risks in discontinued operations – Volkswagen group (formerly:
Volkswagen subgroup)
The disclosures below relate to the market price risk in the comparative period and until
the date of deconsolidation in the current reporting period.
4.4.1 Market price risk in the automotive division
4.4.1.1 Currency risk
In the prior year and in the reporting period until the date of deconsolidation, currency risks
from existing receivables and liabilities as well as from highly probable forecast transactions were
hedged with forward exchange contracts, currency options, currency swaps and combined inter-
est/currency swaps where this made economic sense. These transactions related to the exchange
rate hedging of all payments covering general business activities that were not denominated in the
functional currency of the respective group companies. The principle of matching currencies applies
to the group’s financing activities. Hedges for value fluctuations in future cash flows from highly
probable forecast transactions mainly related to planned revenues in foreign currency. As of 31 July
2009, currency hedges were in place in particular for the major currencies US dollar, pound sterling,
Mexican peso, Russian rouble, Swedish krona, Czech koruna, Swiss franc and Japanese yen.