Annual Report

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Annual Report 2010

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Content

Introduction by a Member of the Board of Directors

2 Description of the Company

3 Organisational Structure

4 Report on Entrepreneurial Activity and State of Assets

5 Supervisory Board Report

8 Future Plans

9 Points of Sale

10 Independent Auditor’s Report

11 Balance Sheet – Long Form

13 Income Statement – Long Form

15 Cash Flow Statement

16 Notes to the Financial Statements

17

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Wilfried Elbs

Chairman of the Board of Directors and CEO

Obsah | Introduction by a Member of the Board of Directors | Description of the Company

Introduction by a Member of the Board

of Directors

Dear Ladies and Gentlemen,

The year 2010 was for s Autoleasing, a. s. a year of recovery, return to profi t and higher specialization of its business activities with a clear focus on ensuring mobility for consumers, small business owners and small and medium-size enterprises.

In 2010, the impacts of the fi nancial crisis resulted in more restraint in investment activities of companies and commercial clients. We have experienced continued trend of reduction in demand for lease fi nancing. The non-bank fi nancing demand was slightly offset by a stable demand by small business owners and households. In 2010, we applied more prudent criteria for customer and fi -nanced commodity evaluation. Our attention primarily focused on the fi nancing of personal and light transportation technology. The reason for greater specialization was our focus on mobility, as one of key human needs, and the Value-at-Risk optimization. This brought us back to profi tability.

In our retail business we have continued to develop our established business model and together with our parent company we have continued to develop cooperation with key vehicle dealers under the heading “ČS Group Car Dealers’ Policy”.

We smoothly built on our previous cooperation with Česká spořitelna. Under the brand “Leasing České spořitelny” which

enabled us to respond to the needs of the Česká spořitelna’s distri-bution channel with greater fl exibility, we have provided leasing fi nancing for Česká spořitelna commercial centers’ customers. As part of consumer protection-related efforts we have adopted all steps needed for the strengthening of a more transparent system of communication with end customers. In order to ensure high-quality information in connection with the contract conclusion and adminis-tration, we paid signifi cant attention to the consistent application of the amended Consumer Loan Act and to better understandability of information provided by us. We have issued an information brochure “Motorist Advisor” with the goal of increasing awareness regarding the vehicle’s “life cycle”. The brochure is available directly at the point of sale or can be downloaded from our web site.

An indivisible part of our 2010 policy was improving the profes-sionalism and specialization of our employees, who are one of our most valuable assets. We continued to develop the systematic edu-cation model with emphasis on business.

We focused on maintaining satisfaction of our end customers and cooperating business partners. Through combination of our prod-uct portfolio offer with high quality of provided services and close cooperation, we once again succeeded in satisfying the needs of both our clients and our business partners. Stable and relatively high satisfaction indexes indicated that owing to our set of princi-ples we found the right way of achieving and maintaining satisfac-tion in line with return to profi tability.

I would like to take this opportunity and thank to all our employ-ees for job well done and to our business partners who offer our services in the market. I would also like to thank to our loyal and returning customers, as well as to the new ones. Confi dence in our products obliges us to increased our efforts.

Wilfried Elbs

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Description of the Company

Company name:

s Autoleasing, a. s.

Registered seat:

Budějovická 1518/13 B, Prague 4, 140 00 Company Identifi cation Number (IČ): 27089444

Shareholders:

Česká spořitelna, a. s. – CZK 500 000 000 (100%)

Members of the Board of Directors

as at 31 December 2010:

Mr. Wilfried Elbs, Chairman Ing. Tomáš Veverka, Vice-chairman JUDr. Petr Kříž, Member

Members of the Supervisory Board

as at 31 December 2010:

Dr. Heinz Knotzer, Chairman Ing. Karel Mourek, Member Ing. Radmila Raymanová, Member Ing. Roman Brychnáč, Member Mag. Alois Barlhuber, Member Ing. Petra Šimůnková, Member

Major business activities:

The provision of leasing services, hire-purchase sale and the pro-vision of customer loans.

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Description of the Company | Organisational Structure | Report on Entrepreneurial Activity and State of Assets

Organisational Structure

The organizational structure of s Autoleasing, a. s.

Board of Directors

Credit Committee Risk Management Committee

Department 1010 (NS 1010)

Secretariat and Staff of Board

Chairman of Board of Directors and CEO

Division 1000

Administration of the Company Chief Sales Offi cer

Region Bohemia I.

Region Bohemia II.

Region Moravia

Sales Network Development

Financial and Managing Offi cer and Vice-chairman of Board of Directors Division 3000

Finance and Managing

Credit Back Offi ce

Stock Financing

Credit Risk Management

Work out and Restructuring

Department 3050 (NS 1130) Customer Service Department 3070 (NS 3070) Portfolio Analysis Division 2000 Sales Department 1020 (NS 2050)

Sales Support and Product Development

Information Technologies and Systems

Corporate Clients and Bank Sales Support

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Organisational Structure | Report on Entrepreneurial Activity and State of Assets | Supervisory Board Report

Report on Entrepreneurial Activity and

State of Assets (Management Report)

Macroeconomic Framework

In 2010, non-bank fi nancial products were offered in the condi-tions of modest economic revitalization. This resulted in a year-on-year increase of leasing of movable assets and non-bank loans for businesses. The demand for leases and consumer loans was still infl uenced by the on-going stagnation of investments and minimum growth in consumer loans. Total volume of leasing has increased 3.5% year-on-year.

Both the GDP and industrial production recorded a year-on-year increase in 2010. Investments and household spending grew very slowly. Low interest rates did not have a direct impact on the price of non-bank fi nancial products. Neither were these products seriously affected by the development of infl ation (in December 2010, infl a-tion was 2.3%). Unemployment that is infl uencing the demand and risk related to consumer loans and leasing reached 9.6% at the end of 2010. In 2010, the business results of non-bank providers of leasing, consumer loans and factoring, were still affected by the adoption of stricter criteria for the evaluation of customers, fi nanced commodities and transaction-related risks. The continued widening of leasing com-panies’ offer to include loan products also affected business results, as did the response to changes in the taxation of leasing.

In 2010 member companies of ČFLA fi nanced through leasing machinery, equipment and transportation technology in total purchase price CZK 47 billion (VAT excluded). Compared to 2009, the fi gure represents an increase by 4.8% for the largest fi f-teen companies. The share of operating leasing in total leasing of movable assets remained unchanged at 25%. The leasing of road vehicles is still dominant in leasing of movable assets. The share of machinery and equipment leasing decreased as compared to previ-ous years (to 21.4% from 32.7% in 2009) and the same applies for passenger car leases (to 25.5% from 27.3% in 2009). The share of

trucks leasing also decreased (to 18.5% from 19.1% in 2009), as did the share of light commercial vehicles leasing (to 4.2% from 8.9% in 2009). The share of new passenger vehicles in total vehicle leasing totaled 80.6% in 2010.

In 2010, ČLFA member companies concluded 49,009 contracts on the leasing of machinery, equipment and transportation technolo-gy – including 27,135 fi nancial leasing contracts (a year-on-year decrease of 4,293 contracts) and 21,874 operating leasing con-tracts (a year-on-year increase of 2,645 concon-tracts). A total of 1,391 vehicles were provided in 2010 to the vehicle fl eet operation run by ČLFA members. In 2010, the average cost of a movable asset fi nanced under leasing increased.

Due to increased unemployment, reduced household spending and decreased household creditworthiness, the 2010 volume of funds provided by non-bank companies in consumer loans, recorded yet another year-on-year decrease. In 2010, ČLFA member compa-nies concluded a total of 1,074,155 consumer loan contracts, i. e. a year-on-year decrease of 29,184 contracts.

Report on the Company’s Operating Results

The Company s Autoleasing, a. s. recorded a profi t of CZK 20 mil-lion in 2010, compared to a loss of CZK 131 milmil-lion in 2009. The merger with its subsidiary s Autoúvěr, a. s. was realized and became effective in 2010. The Company s Autoleasing, a. s. beca-me the the successor company, while the company s Autoúvěr was wound-up without liquidation.

The development of key fi nancial indicators is provided in the table below.

Changes in key fi nancial indicators in CZK millions

CZK mil. 2010 2009 2008 2007

Total assets 9,230 6,990 10,046 10,158 Fixed assets 6,089 5,972 8,959 8,944 Total revenues 4,212 4,774 5,162 4,038 Profi t/loss before tax 26 −131 −83 −104 Profi t/loss for the year 20 −131 −63 −96 Average adjusted number of employees 108 67 90 105

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Report on the Company’s business

activities

Company s Autoleasing, a. s. launched its active business operations starting from 1 October 2004. The Company particularly engages in providing top quality services in cooperation with business partners, suppliers of the assets of leasing and sales representatives.

The total volume of input debt from all fi nanced commodities and

all fi nancial products fi nanced by members of ČLFA on the domestic market was CZK 92.98 billion in 2010; the Company share was CZK 2.6 billion, i. e. a market share of 2.79%. Thanks to its business results, the Company ranked fi fteenth on the movable assets market in 2010. The commodity and client structure of new leasing contracts already put into operation and newly concluded consumer loans in 2010 is illustrated in the charts below.

Commodity structure of the new 2010 consumer loan portfolio of s Autoleasing, a. s.

Vans Passenger vehicles

70 ₁₅

All road vehicles 15

Structure of the new 2010 machinery, apparatuses and equipment portfolio of s Autoleasing, a. s. in purchase price

Printing machines Offi ce equipment

30

Machinery for the food industry 10

Construction machines and technology 4

Furniture, fi xtures and services 3

Other purposetied machinery 2

Measurement and laboratory equipment 1

Other machines and equipment 1

Machinery 34

15

Structure of the new 2010 transportation technology portfolio of s Autoleasing, a. s. in purchase price Vans Trucks 15 11 Handling equipment 8

Semi-trailers and trailers 4

Tractor tailer 4

Passenger cars 58

Structure of the new 2010 leasing portfolio of s Autoleasing, a. s. by client in purchase price

Joint-stock companies

34 ₆ _{Personal entities – enterpriser} Private persons – non-enterpriser 3

Others 1

Limited liability companies 56

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Structure of the new 2010 loan portfolio of s Autoleasing, a. s. by client

in purchase price

Limited liability companies Personal entities – enterpriser

18 ₂₃

Joint-stock companies 3

Private persons – non-enterpriser 56

Structure of installment sales of the new 2010 transportation technology portfolio of

s Autoleasing, a. s. in purchase price

Passenger cars 21 Tractor tailer 14 Vans 7

Semi-trailers and trailers 2 Bus 54 Agricultur machines 1 Other 1

Structure of installment sales of the new 2010 portfolio of s Autoleasing, a. s. by client in purchase price

Limited liability companies

35

Personal entities – enterpriser 8

Other 1

Joint-stock companies 56

Structure of installment sales of the new 2010 machinery, apparatuses and equipment portfolio of s Autoleasing, a. s. in purchase price

Machinery

37

Furniture, fi xtures and services 7

Construction machines and technology 5

Machinery for the food industry 3

Offi ce equipment 3

Agricultur machines and equipment 2

Other 2

Other purposetied machinery 41

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Report on Entrepreneurial Activity and State of Assets | Supervisory Board Report | Future Plans

Supervisory Board Report

Supervisory Board of s Autoleasing, a. s. in compliance with the powers and competence accorded to it by the Commercial Code and the Company’s Articles of Association, similarly as in the previous years, fulfi lled in the accounting period from January to December 2010 the role of the Company’s supervision and control body supervising the activities of the Board of Directors and the Company’s economic and business activities.

According to the requirements stipulated in the Company’s Ar-ticles of Association, the Supervisory Board held four meetings in 2010. During these meetings, the Board of Directors provided information to the Supervisory Board regarding the business and economic developments of the company. The Supervisory Board discussed the key issues of the Company’s economic and business policy and commercial strategy.

In compliance with its powers and competences following from the applicable laws and the Articles of Association, the Supervi-sory Board has discussed the 2010 Report on the Company’s busi-ness activities and state of assets (the Management Report) and re-viewed the Company´s 2010 fi nancial statements submitted by the Board of Directors and, following the conclusions of the auditor, Ernst & Young Audit, s. r. o., expresses the opinion that the fi

nan-cial statements present fairly, in all material respects, the assets, liabilities, equity and fi nancial position of the company s Autoleas-ing, a. s. as at 31 December 2010 and states that the results of the Company’s operations for 2010 are recorded in compliance with the Act on Accounting and the applicable rules and regulations as valid in the Czech Republic.

In view of the above, the Supervisory Board recommends that the annual fi nancial statements of s Autoleasing, a. s. for 2010 and the proposed settlement of the result as submitted by the Board of Di-rectors be approved.

The Supervisory Board also reviewed the Report on Related Par-ties pursuant to Section 66a (9) of the Commercial Code and states that the information included in the Report is true and complete.

Dr. Heinz Knotzer

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Supervisory Board Report | Future Plans | Points of Sale

Future Plans

In 2011, the Company s Autoleasing, a. s. will focus mainly on deeper cooperation with business partners with the aim of provid-ing higher-quality services.

Even though after two diffi cult years we have recorded a prudent and so far fragile economic growth, we will remain very prudent in the upcoming year 2011. The growth potential is still very low across the market and the 2011 revenue will most likely not re-bound to the pre-crisis levels.

We do not expect any dramatic behavioral changes in the fi nancial market. We expect modest revitalization of demand for fi nancing in the commercial client segment. The decrease in new vehicle in-put prices, stagnation in the vehicle market and the Czech crown strengthening only indicates fragile increase in demand for fi nanc-ing in the retail area.

The most important task will be the business activity development and support. In 2011 we plan to focus on passenger cars and light transportation technology fi nancing and on the development of co-operation with our partners in the area of vehicle sales.

In the upcoming period we will emphasize fair and responsible client services and suffi cient and high-quality information. We will con-tinue our trend of improving services for dealer and client in order to maintain their positive approach and loyalty for future periods. At the beginning of the year we will focus on ensuring smooth

company operation in connection with moving to the new facili-ties in close proximity to our parent bank Česká spořitelna and a proper implementation of requirements for increased consumer protection. In the upcoming 18 to 24 months we want to fi nalize the implementation of a uniform technical platform for product and services processing. The uniform platform is necessary for greater automation, higher effi ciency leading to reduced costs incurred for contract processing and administration and increasing long-term competitive ability of the company in the market, as well as sus-tainable profi tability.

Together with these initiatives we will also focus our attention to the methodical development of our employee’s knowledge and competencies and stress adherence to the values and ethi-cal obligations of the company. We expect that increased quali-fi cations will result in greater process automation, increased control and elimination of operational risk elimination, as well as timely identifi cation exposing of possible operational losses while maintaining high-level quality of service.

We hope that our goals will gain and strengthen your confi dence in the upcoming period.

Wilfried Elbs

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Points of Sale

Future Plans | Points of Sale | Independent Auditor’s Report

The Company’s products are being distributed via its business partners’ networks.

Company direct contact information:

s Autoleasing, a. s. Budějovická 1518/13 B 140 00 Prague 4 – headquarters Phone: 266 095 111 Fax: 266 095 777 E-mail: [email protected] Internet: www.sautoleasing.cz

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Independent Auditor’s Report

To the Shareholder of s Autoleasing, a. s.

A member fi rm of Ernst & Young Global Limited, Ernst & Young Audit, s. r. o. with its registred offi ce at Karlovo náměstí 10, 120 00 Prague 2,

has been incorporated in the Commercial Register administered by the Municipal court in Prague, Section C, entry No. 88504, under identifi cation No. 26704153.

I. We have audited the fi nancial statements of s Autoleasing, a. s. (“the Company”) as at 31 December 2010 presented in the annual report of the Company and our audit report dated 18 March 2011 stated the following:

We have audited the accompanying fi nancial statements of s Autoleasing, a. s. which comprise the balance sheet as at 31 December 2010, and the income statement, statement of changes in equity and cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory notes. For details of s Autoleasing, a. s. see Note 1 to the fi nancial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with accounting principles generally accepted in the Czech Republic, and for such internal control as management determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with the Act on Auditors and International Standards on Auditing as amended by implementation guidance of the Chamber of Auditors of the Czech Republic. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The proce-dures selected depend on the auditor’s judgment, including an assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presenta-tion of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of s Autoleasing, a. s. as at 31 December 2010, and its fi nancial performance and its cash fl ows for the year then ended in accordance with accounting principles generally accepted in the Czech Republic.

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A member fi rm of Ernst & Young Global Limited, Ernst & Young Audit, s. r. o. with its registred offi ce at Karlovo náměstí 10, 120 00 Prague 2,

has been incorporated in the Commercial Register administered by the Municipal court in Prague, Section C, entry No. 88504, under identifi cation No. 26704153.

II. We have also audited the consistency of the annual report with the fi nancial statements described above. The management of s Autoleas-ing, a. s. is responsible for the accuracy of the annual report. Our responsibility is to express, based on our audit, an opinion on the consist-ency of the annual report with the fi nancial statements.

We conducted our audit in accordance with International Standards on Auditing and the related implementation guidance issued by the Chamber of Auditors of the Czech Republic. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the information presented in the annual report that describes the facts refl ected in the fi nancial statements is consistent, in all material respects, with the fi nancial statements. We have checked that the accounting information presented in the annual report is consistent with that contained in the audited fi nancial statements as at 31 December 2010. Our work as auditors was confi ned to checking the annual report with the aforementioned scope and did not include a review of any information other than that drawn from the audited accounting records of the Company. We believe that our audit provides a reasonable basis for our opinion.

Based on our audit, the accounting information presented in the annual report is consistent, in all material respects, with the fi nancial state-ments described above.

III. In addition, we have reviewed the accuracy of the information contained in the report on related parties of s Autoleasing, a. s. for the year ended 31 December 2010. The management of s Autoleasing, a. s. is responsible for the preparation and accuracy of the report on related parties. Our responsibility is to issue a report based on our review.

We conducted our review in accordance with the applicable International Standard on Review Engagements and the related Czech standard No. 56 issued by the Chamber of Auditors of the Czech Republic. Those standards require that we plan and perform the review to obtain moderate assurance as to whether the report on related parties is free from material misstatement. The review is limited primarily to enquir-ies of company personnel, to analytical procedures applied to fi nancial data and to examining, on a test basis, the accuracy of information, and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that the report on related parties of s Autoleasing, a. s. for the year ended 31 December 2010 is materially misstated.

Ernst & Young Audit, s. r. o. License No. 401

Represented by

Martin Zuba Partner

Radek Pav

Auditor, License No. 2042 12 April 2011

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Balance Sheet – Long Form

as of 31 December 2010

Independent Auditor’s Report | Balance Sheet | Income Statement

CZK ths. Current

year Prior year2009

Gross Allowances Net Net

Total assets 14,573,164 −5,343,219 9,229,945 6,989,524

B. Fixed assets 10,935,587 −4,846,933 6,088,654 5,972,478

B.I. Intangible assets 96,998 −56,534 40,464 25,225 B.I.3 Software 85,827 −52,344 33,483 23,048 B.I.4 Patents, royalties and similar rights 10,921 −4,190 6,731 2,177 B.I.7 Intangible assets in progress 250 0 250 0 B.II. Tangible assets 8,298,114 −4,772,629 3,525,485 5,890,705 B.II.2 Constructions 562 −36 526 537 B.II.3 Separate movable items and groups of movable items 8,267,716 −4,765,910 3,501,806 5,806,097 B.II.6 Other tangible assets 27 0 27 213 B.II.7 Tangible assets in progress 23,575 −6,683 16,892 81,935 B.II.8 Advances granted for tangible assets 6,234 0 6,234 1,923 B.III. Financial investments 2,540,475 −17,770 2,522,705 56,548 B.III.1 Subsidiaries 25,612 0 25,612 56,548 B.III.5 Other long-term investments 2,514,863 −17,770 2,497,093 0

C. Current assets 2,808,673 −496,286 2,312,387 820,326

C.I. Inventory 11,222 0 11,222 0 C.I.5 Goods 11,222 0 11,222 0 C.II. Long-term receivables 254,259 0 254,259 323,902 C.II.1 Trade receivables 172,731 0 172,731 257,716 C.II.8 Deferred tax asset 81,528 0 81,528 66,186 C.III. Short-term receivables 2,492,908 −496,286 1,996,622 383,436 C.III.1 Trade receivables 2,001,292 −455,011 1,546,281 366,618 C.III.7 Short-term advances granted 2,878 0 2,878 2,336 C.III.8 Unbilled revenue 14,583 0 14,583 10,927 C.III.9 Other receivables 474,155 −41,275 432,880 3,555 C.IV. Short-term fi nancial assets 50,284 0 50,284 112,988 C.IV.1 Cash 212 0 212 1,169 C.IV.2 Bank accounts 50,072 0 50,072 111,819

D. Other assets – temporary accounts of assets 828,904 0 828,904 196,720

D.I. Accrued assets and deferred liabilities 828,904 0 828,904 196,720 D.I.1 Prepaid expenses 699,779 0 699,779 140,728 D.I.3 Unbilled revenue 129,125 0 129,125 55,992

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Independent Auditor’s Report | Balance Sheet | Income Statement

year Prior year 2009

Total equity & liabilities 9,229,945 6,989,524

A. Equity 428,487 21,861

A.I. Basic capital 500,000 372,000 A.I.1 Registered capital 500,000 372,000 A.II. Capital funds 589,592 55,281 AII.1 Share premium (agio) 256,000 0 AII.2 Other capital funds 310,000 310,000 AII.3 Gain or loss on revaluation of assets and liabilities 23,592 −254,719 A.IV. Profi t (loss) for the previous years −681,429 −274,305 A.IV.2 Accumulated loss of previous years −681,429 −274,305 A.V. Profi t (loss) for the year (+/−) 20,324 −131,115

B. Liabilities 8,196,443 5,991,722

B.III. Current liabilities 173,374 140,621 B.III.1 Trade payables 5,118 2,384 B.III.5 Liabilities to employees 3,827 2,499 B.III.6 Liabilities arising from social security and health insurance 2,205 994 B.III.7 Due to government – taxes and subsidies 25,837 25,333 B.III.8 Advances received 36,018 10,885 B.III.10 Unbilled deliveries 81,142 91,254 B.III.11 Other liabilities 19,227 7,272 B.IV. Bank loans and borrowings 8,023,069 5,851,101 B.IV.1 Long-term bank loans 2,895,219 1,466,166 B.IV.2 Short-term bank loans 5,127,850 4,384,935

C. Other liabilities – temporary accounts of liabilities 605,015 975,941

C.I. Accrued liabilities and deferred assets 605,015 975,941 C.I.1 Accruals 17,788 8,746 C.I.2 Deferred income 587,227 967,195

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Balance Sheet | Income Statement | Cash Flow Statement

Income Statement – Long Form

as of 31 December 2010

I.1 Revenue from sale of goods 147,989 59,397 A.2 Cost of goods sold 147,989 59,378

+ Gross margin 0 19

II. Production 2,933,309 3,842,964 II.1 Revenue from sale of fi nished products and services 2,933,309 3,842,964 B. Production related consumption 474,929 196,186 B.1 Consumption of material and energy 9,485 5,483 B.2 Services 465,444 190,703

+ Value added 2,458,380 3,646,797

C. Personnel expenses 89,742 59,450 C.1 Wages and salaries 64,775 44,018 C.2 Bonuses to members of company or cooperation bodies 340 128 C.3 Social security and health insurance 22,259 13,820 C.4 Other social costs 2,368 1,484 D.1 Taxes and charges 1,540 5,368 E.1 Amortization and depreciation of intangible and tangible fi xed assets 2,308,918 3,296,363 III. Revenue from sale of intangible and tangible fi xed assets and materials 313,396 556,447 III.1 Revenues from sale of intangible and tangible fi xed assets 313,396 556,447 F. Net book value of intangible and tangible fi xed assets and materials sold 514,147 634,383 F.1 Net book value of intangible and tangible fi xed assets sold 514,147 634,383 G.1 Change in provisions and allowances relating to operations and in prepaid expenses

(specifi c-purpose expenses) −51,948 227,051 IV.2 Other operating revenues 252,593 141,272 H.1 Other operating expenses 332,748 75,144

* Profi t or loss on operating activities −170,778 46,757

VII. Income from fi nancial investments 0 90,107 VII.1 Income from subsidiaries and associates 0 90,107 X.1 Interest income 521,775 27,566 N.2 Interest expense 333,238 297,823 XI.1 Other fi nance income 42,454 56,034 O.2 Other fi nance cost 34,270 53,756

* Profi t or loss on fi nancial activities 196,721 −177,872

Q. Tax on profi t or loss on ordinary activities 5,619 0

Q.1 – due 23,122 0

Q.2 – defered −17,503 0

** Profi t or loss on ordinary activies after taxation 20,324 −131,115

*** Profi t or loss for the year (+/−) 20,324 −131,115

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Income Statement | Cash Flow Statement | Notes to the Financial Statements

Cash Flow Statement

for the Years Ended 31 December 2010

Cash fl ows from operating activities

Z. Profi t or loss on ordinary activities before taxation (+/−) 25,943 −131,115

A.1. Adjustments to reconcile profi t or loss to net cash provided by or used in operating activities 2,542,781 3,805,022 A.1.1. Depreciation and amortization of fi xed assets and write-off of receivables 2,596,905 3,334,855 A.1.2. Change in allowances −51,948 227,051 A.1.4. Foreign exchange differences −14,390 −14,970 A.1.5. (Gain)/Loss on disposal of fi xed assets 200,751 77,936 A.1.6. Interest expense and interest income −188,537 270,257 A.1.7. Other non-cash movements (e. g. revaluation at fair value to profi t or loss, dividends received) 0 −90,107

A* Net cash from operating activities before taxation, changes in working capital

and extraordinary items 2,568,724 3,673,907

A.2. Change in non-cash components of working capital −652,846 −417,403 A.2.1. Change in inventory −11,222 3,446 A.2.2. Change in trade receivables −240,310 −10,500 A.2.3. Change in other receivables and in prepaid expenses and unbilled revenue 40,656 1,342 A.2.4. Change in trade payables 2,353 −1,930 A.2.5. Change in other payables, short-term loans and in accruals and deferred income −444,323 −409,761

A** Net cash from operating activities before taxation, interest paid and

extraordinary items 1,915,878 3,256,504

A.3.1. Interest paid −332,562 −280,390

A.4.1. Tax paid −44,060 0

A.5.1. Interest received 516,405 27,566

A*** Net cash provided by (used in) operating activities 2,055,661 3,003,680

Cash fl ows from investing activities

B.1.1. Purchase of fi xed assets −691,172 −1,452,598 B.2.1. Proceeds from sale of fi xed assets 313,396 556,447 B.5.1. Dividends received 0 90,107

B*** Net cash provided by (used in) investing activities −377,776 −806,044

Cash fl ows from fi nancing activities

C.1. Change in long-term liabilities and long-term, resp. short-term, loans −2,206,623 −2,457,137 C.2.1. Effect of changes in basic capital on cash 128,000 310,000 C.2.3. Effect of other changes in basic capital on cash 256,000 0

C*** Net cash provided by (used in) fi nancing activities −1,822,623 −2,147,138

F. Net increase (decrease) in cash −144,738 50,499 P. Cash and cash equivalents at beginning of year 112,988 62,489 P1. Effect of merger as at 1 January 2010 on cash and cash equivalents 82,034 0

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Cash Flow Statement | Notes to the Financial Statements | Report on Relations between Related Parties

Notes to the Financial Statements

for the Year Ended 31 December 2010

1. General Information

1.1 Incorporation and Description of the Business

Company s Autoleasing, a. s. (the “Company” or “SAL”) was created by a Deed of Incorporation as a joint stock company on 15 August 2003 and was incorporated by registration at the Com-mercial Register kept in the Municipal Court in Prague on 6 Oc-tober 2003. The principal business activity of the Company is to provide leasing services including instalment sales and providing consumer loans. These activities account for all of the Company’s revenues and are performed in the Czech Republic.

The Company’s share capital is CZK 500,000 thousand as of 31 December 2010. The Company’s sole shareholder is Česká spořitelna, a. s., holding 100% of the share capital.

The Company concluded no controlling agreement with the parent company.

In 2010, the Company’s intention to carry out a merger with its subsidiary s Autoúvěr, a. s. was realized. The merger was carried out in the form of an acquisition, i. e. the company s Autoúvěr, a. s. (“SAU”) was wound up without liquidation and s Autoleasing, a. s. is its universal successor.

The effective date of the merger was 1 January 2010. The merger became effective on the date of its Commercial Register entry, i. e. 1 July 2010. As of the date of entry in the Commercial Register, the successor company shall act as the universal legal successor of the defunct company.

The fi nancial statements have been prepared as separate fi nan-cial statements as at and for the year ended 31 December 2010. Consolidated fi nancial statements prepared in accordance with International Financial Reporting Standards have been prepared by the parent company Česká spořitelna, a. s. In accordance with valid Czech accounting legislation, the Company prepares its an-nual fi nancial statements in accordance with accounting principles generally accepted in the Czech Republic.

1.2 Changes and Amendments in the Commercial

Register

The changes in the composition of the board and supervisory board, increase of basic capital (see Note 4.8.1) and the merger were noted at the Commercial Register kept in the Municipal Court in Prague in 2010.

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1.3 Organisational Structure of the Company

The Company has no foreign branches.

Board of Directors

Credit Committee Risk Management Committee

Secretariat and Staff of Board

Chairman of Board of Directors and CEO

Division 1000

Administration of the Company Chief Sales Offi cer

Region Bohemia I.

Region Bohemia II.

Region Moravia

Sales Network Development

Financial and Managing Offi cer and Vice-chairman of Board of Directors Division 3000

Finance and Managing

Credit Back Offi ce

Stock Financing

Credit Risk Management

Work out and Restructuring

Department 3050 (NS 1130) Customer Service Department 3070 (NS 3070) Portfolio Analysis Division 2000 Sales Department 1020 (NS 2050)

Sales Support and Product Development

Information Technologies and Systems

Corporate Clients and Bank Sales Support

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1.4 Group Identifi cation

The Company is part of the Česká spořitelna, a. s. Financial group. The Company is included in the consolidated group of Česká spořitelna, a. s.

1.5 Board of Directors and Supervisory Board as

of 31 December 2010

Position Name

Board of Directors

Chairman Mr. Wilfried Reinhard Elbs Vice-chairman Ing. Tomáš Veverka Member JUDr. Petr Kříž

Supervisory Board

Chairman Dr. Heinz Knotzer Member Ing. Karel Mourek Member Ing. Radmila Raymanová Member Ing. Roman Brychnáč Member Mag. Alois Bartlhuber Member Ing. Petra Šimůnková

In 2010, JUDr. Petr Kříž was appointed to the Board of Directors. The functional period of Mgr. Renata Rosendorfská as a member of the Supervisory Board expired and Ing. Petra Šimůnková was appointed as a new member to the Supervisory Board.

2. Accounting Methods and General

Accounting Principles

The Company’s accounting is maintained and the fi nancial state-ments were prepared in accordance with Accounting Act 563/1991 Coll., as amended; Regulation 500/2002 Coll., which provides implementation guidance on certain allowances of the Account-ing Act for reportAccount-ing entities which maintain a double-entry book-keeping system and Czech Accounting Standards for Businesses, as amended.

The accounting is maintained in compliance with general account-ing principles, specifi cally the historical cost valuation basis, the accrual principle, the prudence concept and the going concern as-sumption.

These fi nancial statements are presented in thousands of Czech crowns (CZK), unless stated otherwise.

The information for the prior accounting period is presented in the fi nal fi nancial statements of s Autoleasing, a. s., prepared as at 31 December 2009 (prior to merger). Therefore, the information in the accompanying fi nancial statements is not fully comparable to the prior year information.

Explanation Added for Translation into English

These fi nancial statements are presented on the basis of accounting principles and standards generally accepted in the Czech Repub-lic. Certain accounting practices applied by the Company that

con-form with generally accepted accounting principles and standards in the Czech Republic may not conform with generally accepted accounting principles in other countries.

3. Summary of Signifi cant Accounting

Policies

3.1 Tangible and Intangible Fixed Assets

Tangible fi xed assets include identifi able assets with physical sub-stance which have an estimated useful life greater than one year and a cost greater than CZK 13 thousand on an individual basis. Tangible fi xed assets also include selected low value fi xed assets stated at acquisition cost ranging from CZK 1 thousand to CZK 12,999, with the estimated useful life greater than one year. Intangible fi xed assets include identifi able assets without physi-cal substance which have an estimated useful life greater than one year and a cost greater than CZK 60 thousand.

Purchased tangible and intangible fi xed assets are recorded at their acquisition costs, which consist of the purchase price and related costs (assembly, freight, etc.).

The following assets are stated at replacement cost, i. e. the cost that would be paid to acquire the assets at the time of their recogni-tion: assets acquired without consideration on the basis of a con-tract to purchase a leased asset; assets acquired through donations; assets developed internally if their cost cannot be identifi ed; assets recently entered in the accounting records; and contributed fi xed assets with the exception of situations where the contribution is valued pursuant to a deed of association or a deed of foundation. The cost of fi xed asset improvements exceeding CZK 40 thousand and CZK 40 thousand in aggregate for individual tangible and in-tangible fi xed assets, respectively for the taxation period increases the acquisition cost of the related fi xed asset.

Tangible assets with a cost below CZK 13 thousand which are not included in the selected low value fi xed assets, technical im-provements with a cost below CZK 40 thousand and intangible as-sets with a cost below CZK 60 thousand are charged to expenses in the period in which they were acquired.

Depreciation for accounting purposes

Assets used by the Company

Assets are depreciated using the straight line method over their estimated useful lives.

Irrespective of their value, works of art and assets under construc-tion are not depreciated.

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The depreciation periods of the individual asset categories are as follows:

Asset category Depreciation period in years

Machinery and equipment 4–12

Vehicles 4–5

Furniture and fi xtures 4–6 Selected low value assets 2 Software, licences and other intangible assets 4

Leased assets under lease contracts

Monthly depreciation is determined based on an incremental meth-od from the depreciation of the input cost for contracts concluded before 31 December 2007. The monthly depreciation of contracts concluded after 1 January 2008 is determined using the straight-line method, i. e. the proportion of input cost less estimated re-sidual value of the leased assets to the lease term.

Commencement of Depreciation

Depreciation of tangible and intangible fi xed assets for internal use begins in the month following the month the assets are put into use. Depreciation of leased movable assets commences in the month following the month the assets are put into use by the lessee, based on a putting-into-use record received.

Impairment

Allowances against impaired tangible and intangible fi xed assets are established and updated as the difference between the carrying value of the relevant asset and its market value, based on a review of pre-maturely terminated contracts. The allowance is created as the full amount of the estimated difference less any underlying collateral. With respect to current contracts, an allowance against impaired leased tangible and intangible fi xed assets is calculated based on the difference between the exposure and the market price, to which a percentage derived from the number of past due days of the old-est receivable relating to the respective lease contract is applied. For reporting purposes, this calculated allowance is then divided into an allowance against assets and an allowance against receiva-bles, based on an analysis of the whole portfolio by commodity, refl ecting the share of allowances arising from prematurely termi-nated transactions which are created separately against assets (see above) and against receivables (see Note 3.3).

With respect to Retail portfolio contracts, allowances are created individually. The impairment is assessed using a statistical model, which determines a specifi c impairment coeffi cient for each receiv-able. The level of the coeffi cient depends on the category defi ned by Czech National Bank (“CNB”), the length of collection period and the course of collection.

An allowance against advances on tangible fi xed assets is created on the basis of an analysis of the entity to which the advance was made.

3.2 Non-Current Financial Assets

Non-current fi nancial assets mainly include loans falling due after one year and ownership interests.

Other non-current fi nancial assets include principal of the con-sumer loans provided to the individuals, entrepreneurs and cor-porations.

Only the portion of the principal payable after one year is assessed as a non-current fi nancial asset.

Impairment

Allowances are created individually. The impairment is assessed using a statistical model, which determines a specifi c impairment coeffi cient for each contract. The level of the coeffi cient depends on the CNB category, the length of collection period and the course of collection.

3.2.1 Ownership Interests in Subsidiaries

Ownership interests are valued at their acquisition cost upon pur-chase. The acquisition cost of securities and ownership interests includes direct costs related to the acquisition, e. g. fees and com-missions paid to agents, advisors and stock exchanges.

At the date of acquisition of securities and ownership interests, the Company classifi es these non-current fi nancial assets based on their underlying characteristics as investments in subsidiaries and in associates.

Investments in companies in which the Company has the power to govern the fi nancial and operating policies so as to obtain benefi ts from their operations are classifi ed as “Subsidiaries”.

As at the balance sheet date, investments in subsidiaries are valued as follows:

ownership interests in subsidiaries are valued under the equity method; and

ownership interests recorded at acquisition cost upon acqui-sition are revalued at the balance sheet date to refl ect the value of the Company’s share of the subsidiary’s equity.

Impairment

Allowances against ownership interests are recorded if their value is temporarily lower than the carrying amount, the difference being recognised as an allowance.

3.3 Receivables

Upon origination, receivables are stated at their nominal value as subsequently reduced by appropriate allowances for doubtful and bad amounts.

Receivables consist of outstanding lease payments and the aggre-gate balance of amounts due from instalment sales and granted consumer loans.

– –

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Impairment

Allowances against receivables from prematurely terminated con-tracts are established and updated as the difference between the value of the receivable and any underlying collateral.

With respect to current contracts, an allowance against impaired leased tangible and intangible fi xed assets is calculated based on the difference between the exposure and the market price, to which a percentage derived from the number of past due days of the old-est receivable relating to the respective lease contract is applied. For reporting purposes, this calculated allowance is then divided into an allowance against assets and an allowance against receiva-bles, based on an analysis of the whole portfolio by commodity, refl ecting the share of allowances arising from prematurely ter-minated transactions which are created separately against tangible and intangible fi xed assets (see Note 3.1) and against receivables (see above).

With respect to Retail portfolio contracts, allowances are created individually. The impairment is assessed using a statistical model, which determines a specifi c impairment coeffi cient for each receiv-able. The level of the coeffi cient depends on the CNB category, the length of collection period and the course of collection.

Allowances against receivables arising from penalties are recognised in respect of the entire carrying value of these receivable balances.

3.4 Inventory

Seized assets are valued on the basis of the estimated net realizable amount.

3.5 Equity

The basic capital of the Company is stated at the amount recorded in the Commercial Register maintained in the Regional Court. Other capital funds consist of monetary contributions in excess of basic capital.

In accordance with the Commercial Code, the Company creates a legal provision fund from profi t.

In the fi rst year in which profi t is generated, a joint stock company should allocate 20% of profi t after tax (however, not more than 10% of basic capital) to the legal provision fund. In subsequent years, the legal provision fund is allocated 5% of profi t after tax until the fund reaches 20% of basic capital. These funds can only be used to offset losses.

3.6 Trade Payables

Trade payables are recorded at their nominal values.

3.7 Loans

Loans are stated at their outstanding nominal value. Loan interest is recorded on the accrual basis and included in the profi t or loss for the period to which it belongs to.

Any portion of long-term debt which is due within one year of the balance sheet date is classifi ed as short-term debt.

3.8 Provisions

Provisions are intended to cover future obligations or expenditure, the nature of which is clearly defi ned and which are either likely to be incurred or certain to be incurred, but which are uncertain as to the amount or the date on which they will arise.

The Company did not recognise any provisions in 2010.

3.9 Foreign Currency Translation

Transactions denominated in foreign currencies during the year are translated using the exchange rate of the CNB prevailing on the date of the transaction.

At the balance sheet date, fi nancial assets, current assets and li-abilities denominated in a foreign currency are translated using the effective exchange rate announced by the CNB as at that date. Any resulting foreign exchange rate gains and losses were recorded through the current period’s fi nancial expenses or income as ap-propriate.

3.10 Taxes

3.10.1 Depreciation of Fixed Assets

for Tax Purposes

Depreciation of the Company’s own assets and assets held under operating leases is calculated on a straight line basis for tax pur-poses. Assets held under fi nance leases according to contracts con-cluded before 31 December 2007 are depreciated over the lease term. Assets held under fi nance leases according to contracts con-cluded after 1 January 2008 are depreciated according to Sections 31 and 30a (contracts concluded between 20 July 2009 and 30 June 2010) of Act No. 586/1992 Coll., on Income Taxes, as amended – on a straight line basis.

3.10.2 Current Tax Payable

The current tax payable is based on taxable profi t for the reporting period.

Taxable profi t differs from the net profi t as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible, further adjusted by tax allow-ances and potential credits.

3.10.3 Deferred Tax

Deferred tax is accounted for using the balance sheet liability method.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that suffi cient taxable profi t will be available to allow all or part of the asset to be recovered.

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Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also included in equity.

Deferred tax assets and liabilities are offset and reported on an aggregate net basis in the balance sheet, except when partial tax assets cannot be offset against partial tax liabilities.

3.11 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of fi xed assets are added to the cost of those assets. All other borrowing costs are recognised in the income statement in the period in which they are incurred.

3.12 Revenue Recognition

Revenues are recorded on an accrual basis, i. e. they are charged to income for the year in which they were earned. Revenues are recognised on an incremental basis from the beginning of the fi -nancial reporting period. With a view to determining the results of operations in the required format, the Company categorises its revenues as operating, fi nancial and extraordinary. Revenues relat-ing to future periods are recognised on the accrual basis:

interest on provided loans is accrued on an annuity basis over the loan contract period and is always recognised as at the last day of the month;

–

fees for the processing of contracts are accrued on a straight-line basis over the contract period and are always recognised as at the last day of the month;

other revenues are recognised on an accrual basis into inco-me for the period in which they were earned.

3.13 Costs

Costs are recorded on the accrual basis, i. e. they are charged to income for the year in which they were incurred.

Dealer commissions are deferred and amortized over the lease term on a straight-line basis.

3.14 Use of Estimates

The presentation of fi nancial statements requires management to make estimates and assumptions that affect the reported amounts of assets (specifi cally receivables and tangible assets) and liabili-ties at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Management of the Company has made these estimates and assumptions on the basis of all the relevant information available. Nevertheless, the current global economic crisis, its acceleration and market turbulence in-crease the risk that the actual results and outcomes may differ sig-nifi cantly from these estimates.

–

3.15 Cash Flow Statement

The cash fl ow statement is prepared using the indirect method. Cash equivalents include current liquid assets easily convertible into cash in an amount agreed in advance. Cash and cash equivalents can be analysed as follows:

CZK ths. SAL as at 31 Dec 2009 SAU as at 31 Dec 2009 +/– 2010 As at 31 Dec 2010 Cash at bank 111 819 82 034 −143 781 50 072 Liquid valuables 1 169 0 −957 212 Cash in transit 0 0 0 0

Total cash and cash equivalents 112 988 82 034 −144 738 50 284

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4. Balance Sheet and Income Statement – Additional Information

4.1 Fixed Assets

4.1.1 Intangible Fixed Assets

Acquisition Cost

CZK ths. SAL

balance as at 1 Jan 2009

Additions Disposals SAL balance as at 31 Dec 2009

Effect of

merger Additions Disposals Balance as at 31 Dec 2010

Intangibles in

progress 2,894 6,442 −9,336 0 0 250 0 0 Patents, royalties and

similar rights 2,548 1,115 0 3,663 1,616 5,642 0 10,921 Software 36,052 7,788 0 43,840 30,730 11,257 0 85,827 Total 41,494 15,345 −9,336 47,503 32346 17,149 0 96,998

Accumulated Amortisation

CZK ths. SAL balance as at 1 Jan 2009

Effect of

merger Additions Disposals Balance as at 31 Dec 2010

Intangibles in

progress 0 0 0 0 0 0 0 0

Patents, royalties and

similar rights −758 −728 0 −1,486 −878 −1,826 0 −4,190 Software −12,558 −8,234 0 −20,792 −17,150 −14,402 0 −52,344

Total −13,316 −8,962 0 −22,278 −18,028 −16,228 0 −56,534

Net Book Value

CZK ths. SAL balance as at 1 Jan 2009 SAL balance as at 31 Dec 2009 Balance as at 31 Dec 2010 Intangibles in progress 2,894 0 250 Patents, royalties and similar rights 1,789 2,177 6,731 Software 23,495 23,048 33,483

Total, incl. allowances 28,178 25,225 40,464

All the intangible fi xed assets are used by the Company.

Amortisation of Intangible Fixed Assets

CZK ths. SAL 2009 2010

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4.1.2 Tangible Fixed Assets

Own Tangible Fixed Assets

Acquisition Cost

balance as at 1 Jan 2009

Effect of

merger Additions Disposals Balance as at 31 Dec 2010 Buildings 0 562 0 562 0 0 0 562 Individual movable assets 26,638 3,393 −4,197 25,834 24,131 2,511 −3,663 48,813 – Machinery and equipment 17,484 1,659 −61 19,082 16,465 1,260 −2,049 34,758 – Vehicles 9,070 1,706 −4,136 6,640 7,666 1,251 −1,614 13,943 – Furniture and fi xtures 84 28 0 112 0 0 0 112 Other tangibles 213 0 0 213 0 0 −186 27 Tangibles in progress 0 0 0 0 95 2,416 −2,511 0 Total 26,851 3,955 −4,197 26,609 24,226 4,927 −6,360 49,402

Accumulated Depreciation

Effect of

merger Additions Disposals Balance as at 31 Dec 2010 Buildings 0 −25 0 −25 0 −11 0 −36 Individual movable assets −10,329 −8,512 4,197 −14,644 −15,030 −10,735 3,663 −36,746 – Machinery and equipment −7,714 −4,103 61 −11,756 −12,786 −7,266 2,049 −29,759 – Vehicles −2,604 −4,400 4,136 −2,868 −2,244 −3460 1,614 −6,958 – Furniture and fi xtures −11 −9 0 −20 0 −9 0 −29 Other tangibles 0 0 0 0 0 −186 186 0 Total −10,329 −8,537 4,197 −14,669 −15,030 −10,932 3,849 −36,782

Note: Additions and disposals to accumulated depreciation include both the additions and disposals to accumulated depreciation and the net book value of fi xed assets sold and/or damaged.

Net Book Value

CZK ths. SAL balance as at 1 Jan 2009 SAL balance as at 31 Dec 2009 Balance as at 31 Dec 2010 Buildings 0 537 526

Individual movable assets 16,309 11,190 12,067 – Machinery and equipment 9,770 7,326 4,999 – Vehicles 6,466 3,772 6,985 – Furniture and fi xtures 73 92 83

Other tangibles 213 213 27

Tangibles in progress 0 0 0

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Tangible Fixed Assets Held under Leases

Acquisition Cost

balance as at 1 Jan 2009

Additions Disposals Balance as at 31 Dec 2010

Individual movable assets 15,098,984 1,327,023 −4,074,981 12,351,026 497,304 −4,629,427 8,218,903 – Machinery and equipment 4,120,654 575,475 −1,058,999 3,637,130 213,957 −1,164,144 2,686,943 – Vehicles 10,748,647 751,548 −2,953,707 8,546,488 282,084 −3,425,561 5,403,011 – Furniture and fi xtures 229,683 0 −62,275 167,408 1,263 −39,722 128,949 Tangibles in progress 224,956 1,063,399 −1,204,807 83,548 0 −59,973 23,575 Advances for tangibles 32,190 96,936 −126,171 2,955 56,484 −53,205 6,234

Total 15,356,130 2,487,358 −5,405,959 12,437,529 553,788 −4,742,605 8,248,712

Accumulated Depreciation

Individual movable assets −6,499,833 −3,959,930 4,074,981 −6,384,782 −2,851,885 4,629,427 −4,607,240 – Machinery and equipment −1,688,054 −1,229,882 1,058,999 −1,858,937 −851,588 1,164,144 −1,546,379 – Vehicles −4,699,645 −2,681,060 2,953,707 −4,426,998 −1,966,446 3,425,561 −2,967,883 – Furniture and fi xtures −112,134 −48,987 62,275 −98,846 −33,853 39,722 −92,978

Total −6,499,833 −3,959,929 4,074,981 −6,384,781 −2,851,885 4,629,427 −4,607,240 Note: Additions and disposals to accumulated depreciation include both the additions and disposals to accumulated depreciation and the net book value of fi xed assets sold and/or damaged.

Allowances

balance as at 1 Jan 2009

Individual movable assets −69,890 −112,456 11,008 −171,338 −74,267 123,681 −121,924 – Tangibles – current contracts −8,458 −57,065 474 −65,049 −28,411 22,811 −70,649 – Tangibles – prematurely

terminated contracts −61,432 −55,391 10,534 −106,289 −45,856 100,870 −51,275 Advances tangibles −1,444 0 412 −1,032 −6,521 7,553 0 Tangibles in progress 0 −1,613 0 −1,613 −6,683 1,613 −6,683

Total −71,334 −114,069 11,420 −173,983 −74,267 132,847 −128,607

Net Book Value

CZK ths. Balance as at 1 Jan 2009 Balance as at 31 Dec 2009 Balance as at 31 Dec 2010

Individual movable assets 8,529,261 5,794,907 3,489,739 – Machinery and equipment 2,410,816 1,606,855 1,069,915 – Vehicles 6,000,826 4,119,490 2,383,853 – Furniture and fi xtures 117,619 68,562 35,971 Tangibles in progress 224,956 81,935 16,892 Advances for tangibles 30,746 1,923 0

Total, incl. allowances 8,784,964 5,878,765 3,506,631

Were the Company to change the method it uses to depreciate leased objects from annuity depreciation to linear depreciation in cases of lease con-tracts with initial extraordinary instalments as at 31 December 2010 and 2009, the net book value impact would be approximately CZK 26 million and CZK 50 million, respectively. The change in depreciation method would lead to a reduction in the amount of net book value by this amount.

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Depreciation of Tangible Fixed Assets

CZK ths. SAL 2009 2010

Total 3,287,401 2,292,690

4.1.3 Financial Investments

Ownership Interests in Subsidiaries

As at 31 December 2010, the Company held a 99.67% ownership interest in DINESIA a. s. (former Leasing České spořitelny, a. s.). The ownership interest in DINESIA a. s. was acquired based on a contract, from Česká spořitelna, a. s. in 2008.

Subsidiaries

CZK ths. SAL balance as at 31 Dec 2009

Merger with s Autoúvěr, a. s.

Additions Revaluation Decrease in share capital Balance as at 31 Dec 2010 s Autoúvěr, a. s. 33,152 −33,152 0 0 0 0 DINESIA a. s. 23,396 0 0 2,216 0 25,612 Total 56,548 −33,152 0 2,216 0 25,612 Subsidiaries CZK ths. as at 1 Jan Balance 2009

Additions Revaluation Decrease in share capital Balance as at 31 Dec 2009 s Autoúvěr, a. s. 0 297,120 −263,968 0 33,152 DINESIA a. s. 128,858 0 −105,462 0 23,396 Total 128,858 297,120 −369,430 0 56,548

Acquisition Cost

Due to the intrastate merger by consolidation, the business assets of s Autoúvěr, a. s., were transferred to s Autoleasing, a. s.

Company

CZK ths. Address Acqui-sition price

Share Voting

rights capital Equity Profi t for the year dends Divi-per year

Valuation as at 31 Dec 2010

DINESIA a. s. Střelničná 8/1680, Praha 8 2,106 99.67% 99.67% 25 699 4,045 0 25,612

Total 2,106 25,612

Other Financial Investments

Brutto Value

SAL Net value as at 31 Dec 2009 Effect of merger Value as at 31 Dec 2010

Other fi nancial investments 0 2,291,335 2,514,863 – Loans granted – Individuals non-enterpreneurs 0 1,404,589 1,530,214 – Loans granted – Individuals enterpreneurs / Legal entities 0 886,746 984,649

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Impairment

CZK ths. SAL as at

31 Dec 2009 of mergerEffect Additions Disposals 31 Dec 2010Value as at

Provision against principal – Individuals

non-enterpreneurs 0 −8,679 −37,184 34,790 −11,073 Provision against principal – Individuals enterpreneurs /

Legal entities 0 −7,109 −31,476 31,888 −6,697 Total 0 −15,788 −68,660 66,678 −17,770

Net Value

CZK ths. SAL Net value as at 31 Dec 2009 Infl uence of the merger Net value as at 31 Dec 2010

Other fi nancial investments 0 2,275,547 2,497,093 – Loans granted – Individuals non-enterpreneurs 0 1,395,910 1,519,141 – Loans granted – Individuals enterpreneurs / Legal entities 0 879,637 977,952

Total 0 2,275,547 2,497,093

4.2 Long-term Receivables

Long-term Trade Receivables were as Follows:

CZK ths. SAL balance as at 31 Dec 2009 SAL balance as at 31 Dec 2010 Instalment sales 257,716 172,731

Total Long-term Trade Receivables 257,716 172,731

Long-term trade receivables comprise that part of receivables from instalment sales that is due within 1 year of the balance sheet date.

4.3 Short-term Receivables

Aging of Trade Receivables

Year Category

Before due date

Past due Total CZK ths. _days0–90 91–180 _days 181–360 _days _years1–2 more than _{2 years}

2010 Gross 1,429,830 104,758 60,927 147,026 177,805 80,946 2,001,292 Allowances −455,011 Net 1,546,281 2009 SAL Gross 267,532 104,301 52,017 71,451 43,483 62,024 600,807 Allowances −234,189 SAL Net 366,618 2009 SAU Gross 1,036,006 54,786 41,800 88,428 66,123 15,846 1,302,989 Allowances −216,623 SAU Net 1,086,366

In 2010, trade receivables represent the aggregate of receivables arising from lease instalments, instalment sales and loan contracts. As at 31 December 2009, trade receivables of s Autoleasing, a. s. comprise receivables arising from lease instalments and receivables from instalment sales.