Porsche 2009 Annual Report Download - page 56

The net liquidity, i.e. cash and cash equiva-
lents less liabilities to banks, of the Porsche SE
group, thus not taking into consideration the Porsche
Zwischenholding GmbH group and the Volkswagen
group, improved considerably in a year-on-year com-
parison also due to the deconsolidation of the Por-
sche Zwischenholding GmbH group, amounting to
minus 6,047 million euro as of 31 July 2010.
Results of operations
At the end of the fiscal year 2009/10, the
Porsche SE group reports a loss after tax of 454 mil-
lion euro, following a loss after tax of 3,563 million
euro recorded for the same period in the prior year.
The prior-year loss after tax had been affected above
all by effects from market valuation of cash-settled
options for Volkswagen AG shares, by expenses from
the amortization of hidden reserves and liabilities
identified in the course of purchase price allocation
for the purpose of first-time consolidation in full of the
Volkswagen group and by the difficult economic situa-
tion. In contrast, the loss after tax for the fiscal year
2009/10 was heavily influenced by the structural
changes described. The deconsolidations also have a
considerable impact on the structure of the income
statement of the Porsche SE group.
The Porsche Zwischenholding GmbH group
and the Volkswagen group are classified as discontin-
ued operations in accordance with IFRSs and their
earnings are reported in a separate line in the income
statement until their respective date of deconsolida-
tion. The corresponding figures in the income state-
ment for the fiscal year 2008/09 were adjusted to
account for these changes. The contributions of the
Porsche Zwischenholding GmbH group (prior year:
Porsche subgroup, i.e. Porsche AG and its subsidiar-
ies) and the Volkswagen group (prior year: Volks-
wagen subgroup) were thus reclassified to profit/loss
from discontinued operations.
The profit/loss from discontinued operations
includes the current results of the Porsche Zwischen-
holding GmbH group and Volkswagen group until the
date of their deconsolidation on 7 December 2009
and 3 December 2009, respectively. It also includes
the result from the deconsolidation of both groups.
Until the date of their deconsolidation, the
Porsche Zwischenholding GmbH group and the Volks-
wagen group recorded total revenue of 46,349 million
euro. All in all, the profit after tax of the two groups
until deconsolidation including costs arising from the
amortization of the hidden reserves and liabilities
identified in the course of the purchase price alloca-
tion for the Volkswagen group as of 5 January 2009
amounted to 680 million euro. This amount also in-
cludes the income from the disposal of other com-
prehensive income of 890 million euro.
The result from deconsolidation of the two
groups is the difference between the respective fair
value of the investment and the net assets including
the shares of other comprehensive income attribut-
able to the Volkswagen group and the Porsche
Zwischenholding GmbH group and the non-controlling
interests. The stock market price of the shareholding
in Volkswagen AG on the date of deconsolidation was
used to determine the fair value of the Volkswagen
group. The fair value of the Porsche Zwischenholding
GmbH group is derived based on the values underly-
ing the capital increase at Porsche Zwischenholding
GmbH and consequently Volkswagen AG’s investment
in Porsche Zwischenholding GmbH. The loss arising
from the deconsolidation of the Volkswagen group of
15,902 million euro was partially offset by the posi-
tive contribution to profit/loss from the deconsolida-
tion of the Porsche Zwischenholding GmbH group of
9,027 million euro. The deconsolidation of the two
groups consequently gives rise to a loss of 6,875
million euro, which means that profit/loss after taxes
from discontinued operations comes to a total of mi-
nus 6,195 million euro.
The profit/loss from continuing operations in-
cludes the earnings of Porsche SE and its subsidiar-
ies and the profit/loss from investments accounted
for at equity attributable to the Porsche SE group
from its investment in the Porsche Zwischenholding
GmbH group and the Volkswagen group. In particular,
it includes the effect recognized in the income state-
ment arising from the first-time inclusion of the in-
vestment in Volkswagen AG at equity.
56 Group management report