Porsche 2005 Annual Report Download - page 31

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29
Non-current assets
Current assets
Group Balance Sheet Structure Proportions in percent
Assets 05⁄ 06 Liabilities 04 ⁄ 05 Liabilities 05 ⁄ 06Assets 04 ⁄ 05
45,75%
54,25%
54,41%
35,22%
35,96%
28,82%
36,75%
34,55%
28,70%
45,59%
Equity
Non-current liabilities
Current liabilities
Foreign Currency and Cash Management
The foreign currencies most important to Porsche fluctuated
significantly again during the past fiscal year. In view of this
situation, the strategy of securing the currencies most important
to the company in the medium term and thus creating a stable
planning platform once again proved to be worthwhile. The
currency hedging strategy is based on analysis of the principal
national economies and on technical currency and analytical
models. After this, various instruments are implemented to
protect Porsche against exchange rate risks.
Hedging agreements are concluded only with banks of high
standing, so that the credit risk is minimized. We also secure
loans made to group entities by means of interest hedges.
Share price hedges are used on the one hand to hedge further
purchases in Volkswagen AG and also to obtain short-term
liquidity.
Currency and cash management organization is in accordance
with the standard drawn up by German industry, and is subject
to strict internal control, with directives stating the nature and
extent of these transactions and the procedures to be adopted.
The basic principle of segregation of functions is adhered to,
and special data processing systems are employed for the
valuation and monitoring of all transactions. Porsche’s invest-
ment policy complies with the basic principle that investment
security takes clear precedence over any attempt to secure
an unusually high return on investment. We therefore deposit
our cash with banks of impeccable creditworthiness in the
form of overnight or fixed-term deposits. In addition, Porsche
also invests in money market funds and makes use of special
security investment funds when liquidity has to be deposited
in the medium or even long term.