Porsche 2012 Annual Report Download - page 198

Financials
Notes to the consolidated fi nancial statements
Notes to the consolidated balance sheet
[11] Development of investments accounted for at equity
As of 31 December 2012, the shares accounted for at equity solely comprise the carrying
amount of the investment in Volkswagen AG. The required elimination of the intercompany profit
in the income from the contribution of the business operations reduced the carrying amount by
€1,629 million. Reference is made to the section "Consolidated group".
As of 31 December 2011, the shares accounted for at equity comprise a carrying amount of
the investment in Volkswagen AG of €24,272 million and a carrying amount for the investment in
Porsche Holding Stuttgart GmbH of €3,736 million.
70 million of the ordinary shares held by Porsche SE in Volkswagen AG have been pledged
as collateral for liabilities to banks, when given, and unused revolving lines of credit until they are
settled or otherwise canceled (see also note [19]). The main receivable of the syndicate of banks,
which is secured by first-rank security, is not effective at present as the line of credit has not
been utilized yet. The lien secures the repayment claims of any potential future use by the com-
pany of the revolving line of credit. Porsche SE can still exercise its voting rights and is also
entitled to dividends from the ordinary shares subject to the creditors’ right to issue instructions
otherwise in restrictively defined, exceptional cases. All of the pledged ordinary shares could not
and cannot be sold without the prior written approval of a trustee of the collateral before the
liabilities with first-rank security are repaid or the corresponding loan commitments are canceled.
However, Porsche SE is entitled to obtain the approval of the trustee of the collateral provided
the proceeds from the sale are used to repay the line of credit or reduce the loan commitments
and all shares in Volkswagen AG not pledged as collateral have been sold previously or concur-
rently. In addition, Porsche SE may sell subscription rights associated with the shares. Even
before the complete repayment of the utilized syndicated loan and prior to the contribution of its
holding business operations in Volkswagen AG, Porsche SE was already able to exercise its
voting rights and was entitled to dividends from ordinary and preference shares subject to the
creditors' right to issue instructions otherwise in restrictively defined, exceptional cases.
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