Porsche 2008 Annual Report Download - page 229

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Talks with the syndicate of banks commenced at the end of August 2009. The target of these talks
is to renegotiate the existing syndicated loan at more favorable terms after finalization of the basic
agreement.
In fiscal year 2008/09, the Porsche group agreed to repurchase a part of the hybrid bond issued
to institutional investors in December 2007 at total notional amount of €1.0 billion. The repurchase,
which was executed on 31 August 2009, led to a cash outflow of €0.5 billion.
In the course of the acquisition of all shares in LeasePlan Corporation N.V., Amsterdam and the
subsequent sale of 50% of the shares to two co-investors, Volkswagen AG reached an agreement
with the co-investors on put options which entitle the latter to sell their shares to Volkswagen AG.
On 22 December 2008, the co-investors announced that they would make use of their put options.
In September 2009, Volkswagen agreed with the co-investors to acquire shares in the fiscal year
2009/10 for a purchase price of approx. €1.3 billion. The planned simultaneous transfer of the
shares to a new co-investor requires the approval of the oversight authorities.
[35] Segment reporting
The objective of the segment reporting is to provide information about the main operations of the
group. In accordance with IFRS 8 (Operating Segments), the group’s activities are broken down by
operating segments. Segmentation is based on the internal reporting and organizational structure.
Segmentation by operating segments shows activities of the Porsche and Volkswagen business
segments. The segments comprise the development, production and sale of vehicles of the re-
spective subgroups and their financing and leasing business for customers and dealers. The
Volkswagen business segment comprises all activities of the Volkswagen group. The other group
companies, including Porsche SE, are allocated to the Porsche business segment.
Internal controlling and reporting
Segment reporting is generally based on the same accounting policies as the consolidated finan-
cial statements. Measurement methods have not changed in comparison to earlier periods. The
executive board of Porsche Automobil Holding SE is responsible for allocating resources and
assessing the earnings power of the reportable segments. The segments are managed using
profit before the financial result and income taxes.
Intersegment receivables and liabilities, provisions, income and expenses as well as intersegment
profits and losses are eliminated in the column “reconciliation”. This column also includes the
items not allocable to the individual segments. The business relations between the entities of the
Porsche group are generally based on prices as agreed with third parties.