Porsche 2012 Annual Report Download - page 203

Expenses and income from investments accounted for at equity recognized directly in equity
are presented in the separate reserve for investments accounted for at equity. The Porsche SE
group does not have any other income and expenses recognized directly in equity. The changes
in income and expenses recognized directly in equity are therefore presented in the statement of
changes in equity as changes in the reserve for investments accounted for at equity.
The expenses and income recognized directly in equity which arose from investments ac-
counted for at equity include the following: income before tax from currency translation of
€1,199 million (prior year: €1,360 million), income before tax from marking securities to market of
€206 million (prior year: €98 million), income before tax from cash flow hedges of €131 million
(prior year: expenses of €1,088 million), income after tax recognized directly in equity arising
from investments accounted for at equity of €105 million (prior year: €14 million) and tax ex-
penses of €51 million (prior year: tax income of €348 million). In the fiscal year 2012, expenses
of €184 million recognized directly in equity (prior year: €0 million) were released to the income
statement as a result of the contribution of the holding business operations of Porsche SE to
Volkswagen AG (please refer to the section "Consolidated group").
Non-controlling interests – hybrid capital investors
As of the reporting date of the prior fiscal year, the hybrid capital had a nominal volume of €360
million. It had an indefinite term to maturity and represented equity of the group pursuant to the
regulations set forth in IAS 32.
During the first half of the fiscal year 2012, the Porsche SE group repurchased hybrid capital
with a nominal volume of €50 million. The difference between the purchase price of €52 million
and the share of the carrying amount of €48 million was offset against the accumulated profits. In
the course of the contribution of the holding business operations of Porsche SE to Volkswagen
AG, the remaining hybrid capital with a nominal volume of €310 million was transferred and was
thus derecognized from the consolidated financial statements of Porsche SE (reference is made
to the section "Consolidated group").
Capital management
The target of capital management at Porsche SE is the continuous increase in the enterprise
value, securing its liquidity and a return on investment that is commensurate with the risk in-
volved. These goals aim to protect the interests of the shareholders and employees and other
stakeholders in the long term. By means of a systematic investment and financial management
system, Porsche SE continually ensures that costs of capital as well as capital structure are
optimized.
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