Porsche 2009 Annual Report Download - page 42

Enlargement of the executive board
of Porsche SE
Prof. Dr. Martin Winterkorn, chairman of the
board of management of Volkswagen AG, and Hans
Dieter Pötsch, CFO of Volkswagen AG, joined Porsche
SE’s executive board as of 25 November 2009, while
maintaining their previous responsibilities at Volks-
wagen. Prof. Winterkorn now chairs the executive
board and Mr. Pötsch is the CFO. Their joining has
enlarged the executive board, which also comprises
Thomas Edig, deputy chairman of the executive board
of Porsche AG and board member for human res-
sources and social issues and labor director at Por-
sche AG. Michael Macht was a member of Porsche
SE’s executive board until 30 September 2010 and
also held the position of CEO at Porsche AG until that
date. From 1 October 2010 onwards Mr. Macht is now
member of Volkswagen AG’s board of management
(Group Production).
Considerably improved liquidity situation
The Porsche SE group’s liquidity situation has
improved significantly since 31 July 2009. There were
primarily three decisive factors in this respect.
A significant portion of the cash-settled op-
tions relating to Volkswagen AG shares was sold to
Qatar Holding LLC shortly after the end of the fiscal
year 2008/09. This led to the revocation of the re-
strictions on the power to dispose of the existing
sight and fixed-term deposits. In sum, the sale led to
an increase of more than 1 billion euro in available
liquidity.
In addition, the cash contribution of some 3.9
billion euro in connection with Volkswagen AG’s in-
vestment in Porsche Zwischenholding GmbH was
passed through to Porsche SE as a loan. The cash
received was mostly used to reduce Porsche SE’s
liabilities to banks. In this context an agreement was
reached with a banking syndicate in December 2009
on replacing the line of credit of some 10.8 billion
euro agreed in March 2009. The total credit line
available to Porsche SE now amounts to 8.5 billion
euro, split into a tranche of 2.5 billion euro expiring
on 30 June 2011 and two further tranches expiring
on 31 December 2012. Of this 8.5 billion euro, only 7
billion euro has currently been utilized, which means
that Porsche SE still has an unused line of 1.5 billion
euro.
For further details we refer to the section on
“Liquidity risk” under “Opportunities and risks of fu-
ture development” in this management report.
Strategic investor Qatar
As early as 14 August 2009, Porsche SE had
already satisfied another condition of the basic
agreement on the creation of an integrated automo-
tive group, by selling a significant portion of the cash-
settled options relating to shares in Volkswagen AG to
Qatar Holding LLC. The transaction provided Porsche
SE with more than 1 billion euro in cash, which had
been used as collateral for the cash-settled options
until this date. Furthermore, in September 2009 Qatar
Holding LLC had participated with an amount of 265
million euro in Porsche SE’s syndicated loan, which
was replaced in November 2009 by a new financing
arrangement. Qatar Holding LLC also participated in
this loan. At the same time, Qatar Holding LLC ac-
quired an indirect ten percent share in the ordinary
shares of Porsche SE.
Porsche SE plans to sell the remaining cash-
settled options relating to shares in Volkswagen AG it
still helds as of the end of the reporting period that
relates to about two percent of Volkswagen AG’s ordi-
nary shares.
42 Group management report