Porsche 2010 Annual Report Download - page 56

Group management report
Compared to 31 July 2010 cash funds fell by
131 million euro to 406 million euro.
Gross liquidity, i.e., cash and cash equiva-
lents, fell from 898 million euro one year earlier to
622 million euro. Liabilities to banks rose slightly
from a total of 6,945 million euro as of 31 July 2010
to 6,964 million euro as of 31 December 2010.
The net liquidity of the Porsche SE group, i.e.,
cash and cash equivalents less liabilities to banks,
came to minus 6,342 million euro as of 31 December
2010 (31 July 2010: minus 6,047 million euro).
Results of operations
At the end of the short fiscal year 2010, the
Porsche SE group reports a profit after tax of 1,286
million euro, following a loss after tax of 454 million
euro recorded for the prior year.
Over the period from 1 August 2010 to
31 December 2010 other operating income fell by
709 million euro in relation to the comparative period
to 269 million euro. In the short fiscal year this item
mainly contains effects from the valuation of the put
option relating to the remaining shares held by Por-
sche SE in Porsche Zwischenholding GmbH at a fair
value of 158 million euro and an amount of 102 mil-
lion euro from the cash-settled options relating to
shares in Volkswagen AG, which were disposed of in
full in the short fiscal year.
Other operating expenses decreased from
956 million euro to 590 million euro. In the short
fiscal year 2010 they mainly contain the effect from
the valuation of the call option for the shares in Por-
sche Zwischenholding GmbH remaining with Porsche
SE at a fair value of minus 547 million euro. In addi-
tion, expenses arose from the valuation of the cash-
settled options relating to Volkswagen AG shares at
10 million euro; they were disposed of in full in the
short fiscal year.
Personnel expenses came to 11 million euro
in the Porsche SE group (2009/ 10: 17 million euro).
The profit from investments accounted for at
equity amounts to 1,075 million euro (2009/ 10:
6,792 million euro); an amount of 106 million euro
thereof stems from the Porsche Zwischenholding
GmbH group and 969 million euro from the Volks-
wagen group. As a result of the change in Porsche
SE’s fiscal year in the short fiscal year 2010, the
Volkswagen group is now included as of the same
reporting date in the reporting period, whereas it had
previously been included with a delay of one month.
Accordingly, the Volkswagen group has been included
in the profit from investments accounted for at equity
with the figures for a period of six months (1 July to
31 December 2010) in the short fiscal year 2010.
The contributions to profit also include effects of
amortization of the purchase price allocations per-
formed at the time of inclusion of Porsche Zwischen-
holding GmbH as a joint venture and Volkswagen AG
as an associate. The profit/ loss from investments
accounted for at equity – and therefore the Porsche
SE group’s profit after tax – was reduced by 206
million euro in total by the subsequent effects of the
purchase price allocations for the Porsche Zwischen-
holding GmbH and Volkswagen groups, i.e., the amor-
tization of hidden reserves and liabilities identified in
the process. The purchase price allocations required
for the purpose of accounting for the entities at equity
was completed in early December 2010. No restate-
ments had to be made to the figures contained in the
consolidated financial statements for the fiscal year
2009/ 10.
In the comparative period the profit/ loss from
investments accounted for at equity included above
all non-recurring effects, income of 7,841 million euro
from the first-time inclusion of the investment in Volks-
wagen AG at equity, as well as a dilutive effect of
1,440 million euro from the capital increase per-
formed at Volkswagen AG in March 2010, in which
Porsche SE did not participate.
Over the reporting period, the financial re-
sult improved from minus 673 million euro to minus
104 million euro. The reasons include not only the
different period covered by the comparative periods,
but also lower interest payments to banks, attribut-
able to the reduction of the average level of bank
liabilities in the reporting period in relation to the
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