Porsche 2012 Annual Report Download - page 253

Prior to the contribution of the holding business operations of Porsche SE to Volkswagen
AG there were relationships to the Porsche Holding Stuttgart GmbH group in the form of receiv-
ables and liabilities subject to market interest rates (sell also notes [12] and [19]). Prior to the
execution of the contribution, financial services were rendered to entities in that group, giving
rise to finance revenue totaling €107 million (prior year: €183 million) and cost of purchased
services of €102 million (prior year: €175 million). In addition, financial and other guarantees with
a total volume of €1,674 million (prior year: €2,152 million) were issued to entities of that group.
The probability of claims being made on the guarantees is considered very low and Volkswagen
AG has signed a hold harmless agreement in the amount of its share in capital (i.e., 49.9% prior
to the contribution of Porsche SE's holding business operations to Volkswagen AG and 100%
thereafter) (for further details, please refer to note [21]).
Since the contribution Porsche SE and the Volkswagen group have had relationships in the
financial services sector. This led to finance revenue of €4 million (prior year: €0 million), which
was counterbalanced by finance costs of €9 million (prior year: €0 million). In connection with
this relationship, receivables came to €871 million and liabilities to €303 million.
The contribution of the holding business operations of Porsche SE to Volkswagen AG had the
following impact on the agreements already existing prior to the contribution and entered into by
Porsche SE, Volkswagen AG and entities of the Porsche Holding Stuttgart GmbH group as part
of the basic agreement and the associated agreements implementing it:
· Under an agreement implementing the basic agreement Porsche SE agreed to hold
Volkswagen AG as well as Porsche Holding Stuttgart GmbH and Porsche AG harmless from
obligations resulting from certain lawsuits, tax liabilities (plus interest) and for certain major
losses. Due to the contribution of the holding business operations of Porsche SE to
Volkswagen AG, this obligation ceased to exist effective 1 August 2012.
· In addition, Porsche SE had granted Volkswagen AG various guarantees regarding Porsche
Holding Stuttgart GmbH and Porsche AG under the agreement implementing the basic
agreement. These related, among other things, to the proper issue and full payment of shares,
to the ownership of shares in Porsche Holding Stuttgart GmbH and Porsche AG as well as to
the licenses, permits and industrial property rights required for Porsche AG’s operations. Due
to the contribution of the holding business operations of Porsche SE to Volkswagen AG, these
obligations ceased to exist effective 1 August 2012.
· Prior to the date of the contribution, if the loan obligations of Porsche Holding Stuttgart GmbH
or Porsche AG due to Porsche SE had fallen due and been uncollectible in the event of insol-
vency of Porsche Holding Stuttgart GmbH or Porsche AG, Volkswagen AG would have as-
sumed these obligations provided it would have been possible when they fell due to offset the
obligations against claims against Porsche SE had the companies not become insolvent
(please refer to note [12]). As a result of the contribution of the business operations, these loan
obligations were transferred to the Volkswagen group releasing it from all liability, such that
this cannot lead to any obligations of Volkswagen AG towards Porsche SE.
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