Porsche 2007 Annual Report Download - page 40

The share split of 1:10 was completed by Porsche
in March 2008. Subsequently, the price per share
was just a tenth of the value as one old share was
replaced by ten new ones. This had been decided
by the first annual general meeting of Porsche Auto-
mobil Holding SE on 25 January 2008. The split
went hand in hand with a capital increase from
company funds. The capital stock now amounts
to 175 million Euro and is divided into 87.5 million
ordinary and preference shares each; each share
accounts for a pro rata share of the capital stock
of one euro per no par value share.
Conversion into new shares of Porsche SE
In the new 2008/09 fiscal year, Porsche commen-
ced with the conversion of the old preference shares
of Dr. Ing. h.c. F. Porsche AG (ISIN DE0006937733)
into the corresponding new securities of Porsche
Automobil Holding SE with the international securi-
ties number ISIN DE000PAH0038. For shareholders
who keep their shares in a securities portfolio at
the bank, the bank concerned initiated the neces-
sary steps. The code number of the Porsche divi-
dend papers changed on their portfolio statement
on 1 September 2008.
Those shareholders who manage their shares them-
selves were able to file these securities with the
custodian bank for conversion between 1 Septem-
ber and 5 December 2008. In these cases, the
propriety of the shares that had been submitted
was examined and the shareholders now hold new
no par value shares made out to Porsche Automo-
bil Holding SE with a coupon sheet containing the
profit participation certificates numbers 1 to 20
and the renewal coupon. There were certificates for
single no par value shares and global certificates
for ten or a hundred no par value shares each.
The share exchange implemented other sharehol-
der resolutions besides the split: On 26 June 2007,
the extraordinary shareholders meeting of Porsche
had passed a resolution to change the organizatio-
nal form of the company to a European company,
a Societas Europaea (SE), and a name change to
Porsche Automobil Holding SE. The two measures
took effect when the renaming and change of
form was filed with the commercial register of the
Stuttgart district court on 13 November 2007.
Outstanding long-term development
A look at the long-term development of the Porsche
share shows just how much it has appreciated in
value. If one considers the past 15 fiscal years,
namely the period from 1 August 1993 to 31 July
2008 (the last day of the reporting year), the
price rose – adjusted for the split and converted
into euro – from 2.95 Euro to 96.80 Euro. This
growth of 3,181 percent compares to an increase
in value of the Dax of just 255 percent.
A share portfolio with Porsche shares has increas-
ed in value accordingly over this 15-year period.
For every 10,000 Euro invested in shares of the
sports car manufacturer on 1 August 1993, the
portfolio would have increased to 364,000 Euro
by 31 July 2008 (including dividends).
Higher earnings per share
The improved earnings situation of Porsche Auto-
mobil Holding SE is also manifested in the increas-
ed earnings per share. The very high prior-year
figure of 23.99 Euro per share has once again been
exceeded, reaching 35.95 Euro (adjusted for the
split).
The dividend should increase accordingly: For the
2007/08 fiscal year, the annual general meeting
will propose a distribution per ordinary share of
0.694 Euro plus 2.00 Euro special dividend (prior
year split-adjusted: 0.694 Euro plus 1.50 Euro
special dividend) and per preferred share of 0.70
Euro plus 2.00 Euro special dividend (prior year
split-adjusted: 0.70 Euro plus 1.50 Euro special
dividend). For the past fiscal year, the total divi-
dend for ordinary and preference shares thus
amounts to 472 million Euro, that is an increase
of 23 percent. The distribution rate thus amounts
to 7.5 percent (prior year: 9.2 percent).
Intensive investor relations
The huge interest displayed by finance market
players in Porsche, which had already been boost-
ed considerably by the investment in Volkswagen
AG, continued to grow in the reporting period after
Porsche announced plans to acquire a majority share-
holding in the Wolfsburg automotive group. The in-
vestor relations department, which is part of public
relations, and the financial press officer of Porsche
SE shifted up a gear in order to satisfy the infor-
mation needs of investors and financial analysts.
The aim was to give financial market experts a clear
insight into the strategy of Porsche SE and the
complex composition of the company result impact-
ed by the Volkswagen investment. In many cases,
this communication took place in direct contact
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