Porsche 2010 Annual Report Download - page 94

Group management report
would have to report on the results of the audit even
if facts capable of causing not insubstantial detri-
ment to the company were to become known. This
would carry the risk of business secrets being expo-
sed. If a special auditor came to the conclusion that
there had been any dishonesty or gross violations of
the law in connection with the activity under examina-
tion, the content of his report could offer grounds for
further actions for damages against the company
and its boards, and considerably weaken the legal
position adopted by the company in the proceedings
relating to the actions for damages in the USA and
Germany, as well as in any future proceedings. Por-
sche SE considers the application to be without merit
and will defend itself against the application. The
company believes that adequate provisions have
been recognized for the anticipated attorneys’ fees
and litigation expenses.
Tax r isk
The differences of opinion between the com-
pany and the tax authorities regarding the tax treat-
ment of stock option transactions, which were repor-
ted in the risk report for the fiscal year 2009/ 10,
have been resolved. As a result, the risk relating to
the Porsche SE group’s results of operations which
existed as of 31 July 2010 no longer exists as of 31
December 2010.
For further information, we refer to our sta-
tements in the sections “Significant events” and Net
assets, financial position and results of operations in
this management report.
Opportunities and risks of cooperation projects
Cooperation projects include opportunities
and risks, particularly in the areas of development
and production.
The cooperation between the Porsche Zwi-
schenholding GmbH group and its important coopera-
tion partner, the Volkswagen group, can lead to addi-
tional synergies for these significant investments held
by Porsche SE in future. The two groups have already
cooperated for many years on the Colorado project,
in which a platform was developed for the Porsche
Cayenne, the VW Touareg and the Audi Q7. This pro-
ject serves as a model for new cooperation projects.
For example, cooperation on a new Porsche model in
the sporty off-roader segment is currently being
discussed. Potential synergies could arise in the
design of additional shared platforms and in the field
of new technologies as well as auto-electrics and
electronics. By avoiding duplicate investment, the
annual depreciation charge could be reduced. More-
over, the results of operations of both groups and
thereby the profit/ loss from investments accounted
for at equity in the Porsche SE group can also be
improved by combining purchasing functions and
sharing existing sales channels.
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