Porsche 2011 Annual Report Download - page 59

Overall statement on the economic situation of
the Porsche SE group
Since the corporate restructuring performed
in the 2009/10 fiscal year, Porsche SE has func-
tioned as a holding company for its investments in
the operating companies Porsche Zwischenholding
GmbH and Volkswagen AG.
The Porsche SE group’s results of operations
are therefore impacted most by the profit contribu-
tions of the investments accounted for at equity in
Porsche Zwischenholding GmbH and Volkswagen AG.
In addition, the valuation of the put and call options
relating to the remaining shares held by Porsche SE
in Porsche Zwischenholding GmbH can have a signifi-
cant effect on the results of operations in the event
of changes in the underlying assumptions, in particu-
lar the enterprise value of Porsche Zwischenholding
GmbH.
The material factors determining net assets
remain the development of the carrying amounts of
the investments held in Porsche Zwischenholding
GmbH and Volkswagen AG accounted for at equity,
the development of financial liabilities as well as the
status of liabilities to banks.
The financial position is determined, on the
one hand, by the cash inflows from dividends paid by
Porsche Zwischenholding GmbH and Volkswagen AG.
On the other, there are cash outflows especially from
interest and principal payments as well as taxes paid.
The executive board considers the economic
situation of Porsche SE and its significant invest-
ments to be positive. The global economy grew
significantly in 2011. In the past fiscal year, Porsche
SE benefited from the positive economic develop-
ment and the significantly increased revenue in com-
parison to the prior year as well as the increased
profits of these investments. Moreover, Porsche SE's
interest burden was reduced by repaying debt and by
the refinancing performed in 2011.
Additional information on the composition
and development of the items in the balance sheet,
the income statement and the statement of cash
flows of the Porsche SE group is included in the
notes to the consolidated financial statements of the
Porsche SE group as of 31 December 2011.
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