BERLIN — The families that control Volkswagen Group will receive 391 million euros ($425 million) in dividends for 2022 from their holding company Porsche SE, the company said.

Porsche SE proposed a dividend of 2.56 euros per preferred share and 2.554 euros per ordinary share and said dividends would increase once targets to cut debt have been met.

The Porsche and Piech families behind the unlisted holding company Porsche SE are the most powerful voice in VW Group and the newly listed Porsche sports-car brand via a complex cross-holding structure.

In its statement on Thursday, Porsche SE said it aimed to reduce its net debt by up to 16 percent by the end of 2023 compared to the previous year following its purchase of an equity stake in Porsche AG.

That would cut debt to between 6.1 billion euros and 5.6 billion euros from 6.7 billion euros ($7.3 billion) at the end of 2022.

Porsche SE Chairman Hans Dieter Poetsch said the company had “a solid financing and repayment plan in place,” backed by profits from the group, as well as dividend inflows from VW and Porsche AG.

Porsche AG CEO Oliver Blume, who also heads VW, said that dividend payments would increase once the company’s debt had been reduced.

Increased profits at VW helped Porsche SE’s group result to climb by 200 million euros to 4.8 billion euros last year.

For 2023, Porsche SE expects group profit after tax of between 4.5 billion euros and 6.5 billion euros.

Porsche brand, previously part of VW Group, became an independent company via a stock market listing in September last year.

Under the listing’s terms, Porsche AG’s shares were split into preferred shares – 25 percent of which were listed on the stock market – and ordinary shares, which carry voting rights.

Through the Porsche SE holding company, the two controlling families own a majority of voting rights in VW and a portion of voting rights in Porsche AG – with the remainder held by VW.

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