Porsche 2009 Annual Report Download - page 192

192 Financials
The additions to the investments accounted for at equity mainly result from the investments
in Volkswagen AG and Porsche Zwischenholding GmbH. The quoted market price of the investment
in Volkswagen AG on the deconsolidation date was used as carrying amount for the initial inclusion
of the investment at equity. The carrying amount for the initial inclusion of the investment at equity
in Porsche Zwischenholding GmbH is derived from an enterprise value determined in connection
with the capital increase at Porsche Zwischenholding GmbH using a discounted value method.
The investments accounted for at equity comprise a carrying amount of the investment in
Volkswagen AG of €19,086 million and a carrying amount for the investment in Porsche Zwischen-
holding GmbH of €3,621 million.
All of the ordinary and preference shares in Volkswagen AG held by Porsche SE were pled-
ged as collateral on liabilities and other obligations of Porsche SE until they are settled or dis-
pensed with in some other way. Until the liabilities with first-rank security have been partly repaid,
the ordinary and preference shares cannot be sold without the prior written approval of a trustee of
the collateral. However, Porsche SE can still exercise its voting rights and is also entitled to divi-
dends from the ordinary and preference shares subject to the creditors’ right to issue instructions
otherwise. In addition, Porsche SE may sell subscription rights associated with the shares.
The investment in Porsche Zwischenholding GmbH has been assigned to a trustee as col-
lateral. The trustee holds the investment in trust for Porsche SE and as collateral for the financing
banks of Porsche SE. Porsche SE remains the economic owner, exercises voting rights and re-
ceives the profit distributions. The investment in Porsche Zwischenholding GmbH was also pledged
as collateral for financial liabilities. The right of lien cannot be exercised before Volkswagen AG has
had the opportunity to acquire the investment for €3.9 billion arranged as consideration in connec-
tion with the put option.
In the prior year, the carrying amount of the investments accounted for at equity included
interests in joint ventures of discontinued operations with a carrying amount of €5,738 million.