Porsche 2008 Annual Report Download - page 199

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The reserve for accumulated profits includes the profits of Porsche SE and its consolidated sub-
sidiaries earned in prior years and the reporting year and not yet distributed. The revaluation
reserve arises from business combinations achieved in stages and contains changes in hidden
reserves and burdens incurring before initial consolidation that are attributable to shares already
held before initial consolidation.
The portion of the gain or loss on hedging instruments that is determined to be effective is recog-
nized in the reserve for cash flow hedges.
The foreign currency translation reserve is used to record exchange differences arising from the
translation of the financial statements of foreign subsidiaries. In addition, exchange differences
from the translation of capital have been disclosed in this reserve for the first time to allow the
uniform recording of foreign currency effects within equity. The prior-year figures were adjusted
accordingly.
In the reserve for investments accounted for at equity, expenses and income from investments
accounted for at equity recognized directly in equity are presented in a separate reserve for the
first time in order to enhance transparency. The prior-year figures were adjusted accordingly. In
prior years, expenses and income from investments accounted for at equity recognized directly in
equity were included in the respective reserves provided for the nature of the income or expense.
The separate financial statements of Porsche SE as of 31 July 2009 report a net retained profit of
€8,225,000. The executive board and supervisory board of Porsche SE will propose to the annual
general meeting to distribute the entire net retained profit and thus to pay out a dividend of
€0.044 per ordinary share (prior year: €0.694 plus €2.00 extra dividend) and per preference
share of €0.050 (prior year: €0.700 plus €2.00 extra dividend).
Hybrid capital
During fiscal year 2008/09, the Porsche group signed an agreement to repurchase hybrid capital
with a nominal volume of €640 million. This part was therefore reclassified to the bonds. The
remaining hybrid capital thus consists of a nominal volume of €0.36 billion and US$1 billion (prior
year €1 billion and US$1 billion) and has an indefinite duration. According to IAS 32, it represents
equity of the group. The currency translation of the US dollar hybrid capital is based on the ex-
change rate prevailing at the time of issue.
Minority interests
The minority interests in equity mainly relate to the minority interests of Volkswagen AG, Scania AB
and AUDI AG. The other changes presented in the statement of changes in equity mainly concern
the shares acquired in Scania AB as a result of the mandatory offer after the initial consolidation of
the Volkswagen group.