Porsche 2007 Annual Report Download - page 21

Events after the reporting date
On 16 September 2008, Porsche Automobil Hold-
ing SE acquired a further 4.89 percent of the ordi-
nary shares of Volkswagen AG. This raised the total
equity investment in the Wolfsburg-based automo-
tive manufacturer to 35.14 percent of the overall
voting rights. This guarantees Porsche a lasting
majority at VW’s shareholders’ meeting, essentially
giving it control of the Wolfsburg group for corpo-
rate law purposes. These participation ratios mean
Porsche was legally required to submit a formal man-
datory bid for the Volkswagen subsidiary Audi AG,
in Ingolstadt. As Porsche Automobil Holding SE did
not intend to acquire a share in Audi, the Company
only offered Audi shareholders the legally required
minimum price of 485.83 Euro per share. Volks-
wagen AG had previously announced that it would
not accept the offer for its 99.14 percent share
in Audi. The mandatory bid therefore concerned
only the 0.86 percent of shares in free float, which
corresponds to about 370,000 Audi shares.
The period for accepting the mandatory bid was
limited to the shortest legally permissible period of
four weeks. It began on 29 September 2008.
In the time from 16 September 2008 to 20 October
2008, Porsche Automobil Holding SE acquired a
further 7.49 percent of the voting shares in Volks-
wagen AG.
Thanks to employees,
business associates and shareholders
An exceptional level of commitment was once again
required from all Porsche employees in the year
under review, in Germany and elsewhere, through-
out all of the Company’s divisions. The high level
of production, preparation for new models and
international presentation of new vehicles to jour-
nalists, dealers and customers posed particular
challenges. Others included further sales and mar-
keting and development activities. The Executive
Board would like to thank all those involved for their
dedication. As a token of appreciation, all full-time
employees covered by collective bargaining agree-
ments that have been with the Company for at least
a year share, as in previous years, in the positive
operating result. They will each receive a voluntary
one-off payment totaling 6,000 Euro.
We would also like to thank our shareholders, who
have once again displayed their trust in the com-
pany’s excellent prospects, the employees’ elected
representatives, who worked together with the
management on far-reaching strategic decisions,
as well as our suppliers and business associates
in the sales organizations. Without their support
it would not have been possible for Porsche to
achieve its ambitious goals, let alone to far out-
perform these goals.
Remuneration report
The remuneration of the Executive Board con-
sists of fixed and variable components. There
are also guarantees in the form of pension
entitlements in the event of a termination of
employment. Further details are given in the
notes to the consolidated financial statement
in note [38] “Remuneration of the supervisory
board and executive board”.
18
2005 ⁄ 06 2006 ⁄ 07 2007⁄ 082004 ⁄ 05
Capital Expenditures*and Extended Cash flow
Extended Cash flow including changes to other provisions
in million Euro
* without financial investment
Capital Expenditures
Extended Cash flow
9,000
7,500
6,000
4,500
3,000
1,500
8,198
1,362
5,6422,1011,332
1,205959919
Group Management Report
To our shareholders
The Company
The new Panamera
Financials