Porsche 2009 Annual Report Download - page 89

Risk from cash-settled stock options
The strategy to invest in Volkswagen was re-
alized to some extent by means of cash-settled op-
tions for Volkswagen AG shares. In the past fiscal
year, a large portion of options held by Porsche SE
was sold to Qatar Holding LLC at their carrying
amount by contract dated 14 August 2009.
In addition, Porsche SE settled further cash-
settled options for Volkswagen AG shares in the past
fiscal year. Porsche SE plans to sell the remaining
cash-settled options it still held as of the end of the
reporting period relating to about two percent of
Volkswagen AG’s ordinary shares. There is a liquidity
risk for Porsche SE in the event of a fall in the share
price of the VW ordinary share and sale or settlement
of the options. Considering the small number of op-
tions, the executive board has assessed this risk as
low and as a risk not jeopardizing the company’s abil-
ity to continue as a going concern.
Risks originating from financial covenants
Porsche SE and various banks agreed on fi-
nancial covenants in connection with the new syndi-
cated loan concluded in 2009. They relate to earnings
and share indicators of Volkswagen AG. The financial
covenants were complied with as of 31 July 2010.
They are reviewed on a monthly or quarterly basis.
The loan agreement is deemed to have been infringed
only if all financial covenants are breached at the
same time. In that case, the banking syndicate is enti-
tled to terminate the syndicated loan. The executive
board currently does not see any indication that these
covenants will not be met in the future.
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