Porsche 2010 Annual Report Download - page 175

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[10] Notes to the consolidated statement of cash flows
The statement of cash flows shows how the cash funds of Porsche SE group have changed
during the reporting year as a result of cash inflows and outflows. For this purpose the cash flows in the
statement of cash flows are categorized into operating activities, investing activities (including invest-
ments in securities, loans and fixed-term deposits), and financing activities.
Cash inflows and outflows from investing and financing activities are presented using the
direct method. Cash flows from investing activities contain additions to and disposals of property,
plant and equipment and financial assets, intangible assets and investment property as well as
additions and disposals of cash funds due to changes in the consolidated group. The cash flows
from investing activities also contain cash received from and paid for the acquisition and disposal
of cash-settled stock options used to secure stock prices in the comparative period and for other
purposes. Changes in investments in securities, loans and time deposits are also included therein.
The statement of cash flows for the comparative period was significantly affected by the inclu-
sion of the Volkswagen group and the Porsche Zwischenholding GmbH group until the dates of decon-
solidation. The cash inflow from operating activities was influenced by the operating activities of the
discontinued operations in particular. The cash and cash equivalents disposed of in the course of
deconsolidation are presented as investing activities. An amount of €343 million thereof was attrib-
utable to the Porsche Zwischenholding GmbH group and €22,877 million to the Volkswagen group.
The cash flows from financing activities contain cash paid for dividends, for the repayment of
loans, bonds, commercial papers and notes, to non-controlling interests and hybrid capital investors as
well as cash received from loans, bonds, commercial papers and notes as well as the change in other
financial liabilities.
In the comparative period, the item “cash received from other financial liabilities” mainly con-
tains the cash contribution of €3.9 billion passed on to Porsche SE as a loan from Porsche Zwischen-
holding GmbH which had been contributed to Porsche Zwischenholding GmbH by Volkswagen AG in the
course of the capital increase.
The cash flow from operating activities, on the other hand, is derived indirectly from profit/loss
after tax. This involves eliminating all non-cash expenses – besides depreciation or amortization, this is
mainly changes in provisions as well as other non-cash income and expenses – and adjusting them for
changes in operating assets and liabilities.