Porsche 2012 Annual Report Download - page 115

The syndicated loan of a nominal amount of
2.0 billion euro that existed at the time the holding
business operations were contributed to
Volkswagen AG, was repaid in full using the cash
inflow. However, Porsche SE continues to have a
currently undrawn revolving line of credit at its
disposal. In accordance with the applicable terms
of the syndicated loan agreement of October 2011,
this line has decreased as a result of the repay-
ment of the utilized syndicated loan from a maxi-
mum of 1.5 billion euro to a maximum of 1.0 billion
euro. The maturity date of 30 November 2013, and
the options to extend the loan such that under
certain circumstances the maturity date may be
prolonged until 30 June 2015 in two steps, remain
unaffected.
Specific risks faced by Porsche SE
Due to its function as a holding company, Por-
sche SE faces mainly financial and legal risks. Fi-
nancial risks are managed using a comprehensive
liquidity and financial management system that
constitutes the central component of the integrated
early warning system for the detection of risk. Freely
available liquidity is a significant financial and risk
indicator that reflects both the financing and the
investment strategy and that is therefore included in
the regular reporting.
Porsche SE’s risks have changed in the fiscal
year 2012 due to the contribution of its holding
business operations to Volkswagen AG and are as
described below.
Risks originating from the capital
and credit markets
Day-to-day monitoring ensures that the executive
board is informed at an early stage about changes
in the conditions on the credit and capital markets
allowing it to develop and decide on suitable meth-
ods of handling and transferring the risk. The main
focus here is primarily on the situation on the finan-
cial markets. The relationship to creditors is another
key aspect of the strategic considerations and risk
analyses.
Some of the cash received by Porsche SE on
contributing its holding business operations to
Volkswagen AG was used to repay in full the previ-
ously utilized syndicated loan of 2.0 billion euro.
Potential risks from floating-rate debt capital there-
fore no longer exist following the repayment.
Liquidity risk
As considerations for the contribution of its operat-
ing holding business to Volkswagen AG, Porsche
SE received a cash amount of 4.5 billion euro, in
addition to one new ordinary Volkswagen AG share.
As a result, Porsche SE now has a clearly positive
net liquidity.
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