Annual Report

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Annual Report 2011

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Content

Introduction by a Member of the Board of Directors

2 Description of the Company

3 Organizational Structure

4 Report on Entrepreneurial Activity and State of Assets

6 Supervisory Board Report

7 Future Plans

8 Points of Sale

9 Independent Auditor’s Report

10 Balance Sheet – Long Form

12 Income Statement – Long Form

14 Cash Flow Statement

15 Notes to the Financial Statements

16

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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,

Thanks to the effort of our employees and selected suppliers, we managed to move and start full operation in new premises located near the headquarters of our sole shareholder, Česká spořitelna, in the fi rst quarter of 2011. We were able to successfully transfer the entire technical and administrative base of the Company during a single weekend and thus eliminate to the maximum extent any possible risks of losing business.

A general improvement was also achieved in the availability and measurability of customer services by introducing a new telephone exchange in 2011. This involved the introduction of a single client hotline of the Financial Group of Česká spořitelna of which we are members.

Despite the fragile economic growth in the sector, stagnation in the market for new cars and slightly declining sales of used cars, the Company managed to increase annual sales of fi nancial services by 11%. The year-on-year increase resulted in particular from the fi nancing of new and well-preserved cars and utility vehicles up to 3.5t and an expanding network of our business partners.

In 2011 we introduced a new training scheme for our employees so that we could better and faster adapt to the expectations and needs of our clients and partners. To ensure high client service standards and taking into account the amendment to the Consumer Loan Act,

we successfully introduced updated contractual documents in early 2011. In addition, we published a motoring guide (“Poradce pro motoristy”), which provides basic information on funding as well as key responsibilities related to the operation of a vehicle. This brochure can be found on our website.

We continued to implement a uniform IT platform that will con-tribute to savings due to higher automation of tasks and the overall effi ciency. In addition, the introduction of a single operating plat-form should eliminate any operational risks.

I am convinced the year 2011 was a successful one for our Com-pany. We have achieved a slightly higher profi t than expected, in spite of a prudent risk policy.

To conclude, let me thank all the business partners of the Company for their cooperation and our employees for their enthusiasm and effort, which I believe will contribute to our goal, i. e. to be the fi rst choice partner for our clients and business partners for the times ahead.

Wilfried Elbs

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Description of the Company

Company Name:

s Autoleasing, a. s.

Registered Offi ce:

Budějovická 1518/13 B, 140 00 Prague 4 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 2011:

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

Members of the Supervisory Board

as at 31 December 2011:

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

Organizational Structure

The organizational structure of s Autoleasing, a. s. is as follows:

Board of Directors

Credit Committee Risk Management Committee

Chairman of Board of Directors and CEO

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

Division 3000

Finance and Managing

Department 3020 (NS 1120)

Credit Back Offi ce

Credit Risk Management

Customer Service

Portfolio Analysis

Work out and Restructuring

Secretariat and Staff of Board

Division 1000

Administration of the Company

Sales Support and Product Development

Information Technologies and Systems

Chief Sales Offi cer

Region Bohemia I.

Region Bohemia II.

Department 2030 (NS 2030) Region Moravia Division 2000 Sales Department 2040 (NS 3010) Corporate Clients and Bank Sales Support

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

Management Report

Macroeconomic Framework

The year 2011 showed a stagnant level of demand for nonbank fi -nancial products as the fi -nancial products had to cope with a gradual economic slowdown. There was no signifi cant strengthening of in-vestments and household spending. Under these circumstances, the volume of non-bank fi nancing increased only moderately in 2011. Information on the economic development in CR relevant for non-bank fi nancing:

gradual decline in growth rate (year-on-year increase by 2.8%); annual growth of industrial production by 6.9%, with a decli-ning growth rate during the year;

low growth or mere stagnation of investment activities; stagnation of household expenditure, the annual increase in retail only by 1.9%;

low infl ation with a gradual increase (from 1.7% in January to 2.4% in December);

slight fall in unemployment (from 9.7% in January to 8.6% in December);

the share of non-performing household loans from banks and non-bank fi nancial institutions dropped.

A number of requests to fi nance investment and consumer plans was connected with signifi cant risks and could not be accepted when applying the prudent evaluation criteria on both clients and the fi nanced commodity itself. The development was also infl u-enced by the leasing companies’ offer being extended by loan products and growth in loan fi nancing of their business.

In 2011, the amount of fi nancing provided by the member compa-nies of the Czech Leasing and Finance Association (CLFA) through leasing, factoring, loans for consumers and businesses totaled CZK 124.3 billion (by CZK 0.8 billion more than in 2010), of which CZK 89.3 billion were to fi nance investments and business operations and CZK 35 billion to fi nance goods and services for households. Road vehicles (mostly new) were fi nanced by CZK 55.9 billion (45% of the total funded amount), of which CZK 32.6 billion were for the ac-quisition of passenger cars (45.8% of the fi nancing of new passenger cars fi rst registered in CR in 2011). An amount of CZK 18.8 billion was further provided to fi nance machinery and equipment, of which CZK 3.8 billion were used to fi nance photovoltaic equipment. The member companies concluded 1,079,807 new agreements on

leas-– – – – – – –

ing and loan transactions. At the end of 2011, a total of 2,519,438 active lease and loan agreements were administered by the CLFA members. The receivables from active lease and loan transactions amounted CZK 269.7 billion at the end of 2011.

The portfolio managed by the members comprised acquisition cost (excluding VAT) of CZK 45.6 billion (an annual increase with the top fi fteen companies by 1.8%). The estimation of the overall mar-ket exceeds CZK 47.8 billion and the total amount fi nanced (input debt) was CZK 41.6 billion. There was an increase in the share of operating leases in the total leasing of movable assets – operating leases represented 34.7% (in comparison to 26% in 2010). As in previous years, nearly half of the leasing of movable assets was tied to the private service sector and over two fi fths to industry and construction. A total of 47,464 new agreements on leasing of ma-chinery, equipment and vehicles was concluded with entrepreneurs, of which 20,888 were for fi nancial leases and 26,576 for operating leases. The number of newly concluded lease agreements to fi nance investment with businesses increased by 3% year-on-year.

Consumer loans were provided by 22 member companies of CLFA. The loans provided for personal use totaled CZK 34.2 billion, which represents the actual annual increase of 1.5%. In 2011, the growth rate of non-bank consumer loans went down. The volume of loans for fi nancing of cars increased by 2% year-on-year, i.e. to CZK 7.6 billion; the number of loans grew by 1.4% to 52,786. A total of 958,901 agreements on consumer loans was concluded (down by 10.5% year-on-year).

The acquisition cost of movable assets (excluding VAT) included in consumer leases totaled CZK 0.8 billion in 2011. The volume of leases for consumers fell by half year-on-year. The share of op-erating leases in the overall consumer leases of movables rose to 83.1%.

Report on the Company’s Operating Results

The Company s Autoleasing, a. s. recorded a profi t of CZK 44 mil-lion in 2011, compared to CZK 20 milmil-lion in 2010.

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

Changes in key fi nancial indicators

CZK mil. 2011 2010 2009 2008

Total assets 8,459 9,230 6,990 10,046

Fixed assets 5,166 6,089 5,972 8,959

Total revenues 3,004 4,212 4,774 5,162

Profi t/loss before tax 74 26 –131 –83

Profi t/loss for the year 44 20 –131 –63

Average adjusted number of employees 109 108 67 90

Report on the Company’s Business Activities

The Company s Autoleasing, a. s. commenced its real business operations starting from 1 October 2004. The Company particularly engages in the provision of top quality services in cooperation with business partners, suppliers of the objects of leases and sales representatives. The total volume of input debt from all fi nanced commodities and all fi nancial products fi nanced by members of CLFA on the domestic market was CZK 94.36 billion in 2011; the Company share was CZK 2.9 billion, i. e. a market share of 3.03%. Thanks to its trading results, the Company ranked fourteenth on the movable assets market in 2011.

Competition of s Autoleasing in the market of non-bank fi nancial products for 2011

Company CZK ths Percentage ŠkoFIN s. r. o. 6,720,000 17.57 UniCredit Leasing CZ, a. s. 5,239,200 13.70 ČSOB Leasing, a. s. 3,639,200 9.52 Credium, a. s. 3,178,810 8.31 s Autoleasing, a. s. 2,539,440 6.64 GE Money Auto, s. r. o. 2,497,750 6.53 ALD Automotive s. r. o. 1,881,900 4.92 LeasePlan ČR, s. r. o. 1,846,830 4.83

Mercedes-Benz Financial Services Česká republika s. r. o. 1,663,110 4.35

ESSOX s. r. o. 1,563,870 4.09

Other 7,468,800 19.53

Market 38,238,910 100.00

Note: The order of CLFA member companies is based on the input debt in the aggregate of all products used to fi nance cars, utility vehicles and motorcycles.

Competition of s Autoleasing in the market of non-bank fi nancial products for 2011

Market share of car fi nancing companies

ČSOB Leasing, a. s. UniCredit Leasing CZ, a. s. 17.6 Credium, a. s. 8,3 s Autoleasing, a. s. 6,6 Other 19,5 9.5 ŠkoFIN s. r. o. 13.7 GE Money Auto, s. r. o. ALD Automotive s. r. o. LeasePlan ČR, s. r. o. Mercedes-Benz Financial Services Česká republika s. r. o. ESSOX s. r. o. 4,1 4,3 4,8 4,9 6,5

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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 2011 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 2011. 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 2011 Report on the Company’s busi-ness activities and state of assets (the Management Report) and re-viewed the Company’s 2011 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 2011 and states that the results of the Company‘s operations for 2011 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 2011 and the proposed settlement of the result as submitted by the Board of Di-rectors be approved.

The Supervisory Board reviewed the Report on Related Parties 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

Dear Ladies and Gentlemen,

Next year, in which we expect continued macroeconomic stagna-tion and a lot of rather pessimistic news on the state of economy, we still want to focus on further development of our business ac-tivity. Our principal aim will be to provide fi nancing in order to ensure the mobility of our clients from the ranks of citizens, entre-preneurs and businesses.

Being supported by the parent company – the largest retail bank in the Czech Republic – allows us to better assess the fi nancial capabilities of our clients and thus provide fi nancing to those who act responsibly in relation to their commitments. The fact that this is the case of a ma-jority of our clients has shown in the fi gures for the previous period. Most of us are becoming much more responsive and responsible due to the persistent crisis as well as omnipresent reports on its development. However, we perceive the crisis as an opportunity. We will strive to present a stable, trustworthy and reliable partner for both our current and potential clients.

The year 2012 will be marked by the continuation of projects and activities initiated in the previous period. We will provide

addi-tional training to our employees so that we could further improve the quality of services. Our investments will be prioritized into the unifi cation of the IT platform that will help us to expand with rela-tively lower costs.

In addition, we will enhance the requirement monitoring and pa-rameter reporting schemes. This will make it easier to adjust the parameters of our products to refl ect the needs of our clients to the maximum extent possible. For us, the year 2012 represents an opportunity to demonstrate to our clients, business partners and shareholder that we are able to achieve good results and provide high quality services even in an ever changing environment. We will make every effort to provide our clients with the confi dence that they have selected the right business partner.

Wilfried Elbs

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

Points of Sale

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: 956 785 111 Fax: 224 646 111 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 2011 presented in the annual report of the Company on pages 12–38 and our audit report dated 9 March 2012 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 2011, 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 information. 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 pofi cies 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 2011, 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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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 mate-rial respects, with the fi nancial statements. We have checked that the accounting information presented in the annual report on pages 1–9 is consistent with that contained in the audited fi nancial statements as at 31 December 2011. 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 2011 presented in the annual report of the Company on pages 39–43. 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 2011 is materially misstated.

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

Represented by

Martin Zuba Partner

Radek Pav

Auditor, License No. 2042 4 May 2012

Prague, Czech Republic

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,

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Balance Sheet – Long Form

as of 31 December 2011

Independent Auditor’s Report | Balance Sheet | Income Statement

CZK ths. Current

year Prior year2010 Gross Allowances Net Net

Total assets 12,666,743 –4,208,235 8,458,508 9,229,945

B. Fixed assets 8,888,706 –3,722,608 5,166,098 6,088,654

B.I. Intangible assets 114,115 –70,421 43,694 40,464

B.I.3 Software 102,352 –63,752 38,600 33,483

B.I.4 Patents, royalties and similar rights 11,521 –6,669 4,852 6,731

B.I.7 Intangible assets in progress 242 0 242 250

B.II. Tangible assets 6,043,034 –3,630,604 2,412,430 3,525,485

B.II.2 Constructions 0 0 0 526

B.II.3 Separate movable items and groups of movable items 5,999,468 –3,620,321 2,379,147 3,501,806

B.II.6 Other tangible assets 27 0 27 27

B.II.7 Tangible assets in progress 12,956 –10,283 2,673 16,892

B.II.8 Advances granted for tangible assets 30,583 0 30,583 6,234

B.III. Financial investments 2,731,557 –21,583 2,709,974 2,522,705

B.III.1 Subsidiaries 32,036 0 32,036 25,612

B.III.5 Other long-term investments 2,699,521 –21,583 2,677,938 2,497,093

C. Current assets 2,971,243 –485,627 2,485,616 2,312,387

C.I. Inventory 8,955 0 8,955 11,222

C.I.5 Goods 8,955 0 8,955 11,222

C.II. Long-term receivables 275,415 0 275,415 254,259

C.II.1 Trade receivables 200,809 0 200,809 172,731

C.II.8 Deferred tax asset 74,606 0 74,606 81,528

C.III. Short-term receivables 2,654,247 –485,627 2,168,620 1,996,622

C.III.1 Trade receivables 2,141,142 –445,485 1,695,657 1,546,281

C.III.7 Short-term advances granted 5,919 0 5,919 2,878

C.III.8 Unbilled revenue 15,366 0 15,366 14,583

C.III.9 Other receivables 491,820 –40,142 451,678 432,880

C.IV. Short-term fi nancial assets 32,626 0 32,626 50,284

C.IV.1 Cash 253 0 253 212

C.IV.2 Bank accounts 32,373 0 32,373 50,072

D. Other assets – temporary accounts of assets 806,794 0 806,794 828,904

D.I. Accrued assets and deferred liabilities 806,794 0 806,794 828,904

D.I.1 Prepaid expenses 692,408 0 692,408 699,779

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year Prior year2010

Total equity & liabilities 8,458,508 9,229,945

A. Equity 472,874 428,487

A.I. Basic capital 500,000 500,000

A.I.1 Registered capital 500,000 500,000

A.II. Capital funds 590,244 589,592

A.II.1 Share premium (agio) 256,000 256,000

A.II.2 Other capital funds 310,000 310,000

A.II.3 Gain or loss on revaluation of assets and liabilities 24,244 23,592

A.III. Reserve funds and other funds created from profi t 4,100 0

A.III.1 Legal reserve fund 4,100 0

A.IV. Profi t (loss) for the previous years –665,205 –681,429

A.IV.2 Accumulated loss of previous years –665,205 –681,429

A.V. Profi t (loss) for the year (+/−) 43,735 20,324

B. Liabilities 7,533,427 8,196,443

B.I. Provisions 3,036 0

B.I.4 Other provisions 3,036 0

B.III. Current liabilities 267,644 173,374

B.III.1 Trade payables 4,251 5,118

B.III.5 Liabilities to employees 3,795 3,827

B.III.6 Liabilities arising from social security and health insurance 2,146 2,205

B.III.7 Due to government – taxes and subsidies 10,145 25,837

B.III.8 Advances received 37,349 36,018

B.III.10 Unbilled deliveries 141,211 81,142

B.III.11 Other liabilities 68,747 19,227

B.IV. Bank loans and borrowings 7,262,747 8,023,069

B.IV.1 Long-term bank loans 3,053,810 2,895,219

B.IV.2 Short-term bank loans 4,208,937 5,127,850

C. Other liabilities – temporary accounts of liabilities 452,207 605,015

C.I. Accrued liabilities and deferred assets 452,207 605,015

C.I.1 Accruals 14,610 17,788

C.I.2 Deferred income 437,597 587,227

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Balance Sheet | Income Statement | Cash Flow Statement

Income Statement – Long Form

as of 31 December 2011

I.1 Revenue from sale of goods 207,085 147,989

A.2 Cost of goods sold 207,194 147,989

+ Gross margin –109 0

II. Production 1,860,227 2,933,309

II.1 Revenue from sale of fi nished products and services 1,860,227 2,933,309

B. Production related consumption 461,386 474,929

B.1 Consumption of material and energy 8,647 9,485

B.2 Services 452,739 465,444

+ Value added 1,398,732 2,458,380

C. Personnel expenses 93,404 89,742

C.1 Wages and salaries 67,687 64,775

C.2 Bonuses to members of company or cooperation bodies 510 340

C.3 Social security and health insurance 22,657 22,259

C.4 Other social costs 2,550 2,368

D.1 Taxes and charges 4,396 1,540

E.1 Amortization and depreciation of intangible and tangible fi xed assets 1,367,454 2,308,918

III. Revenue from sale of intangible and tangible fi xed assets and materials 204,826 313,396

III.1 Revenues from sale of intangible and tangible fi xed assets 204,826 313,396

F. Net book value of intangible and tangible fi xed assets and materials sold 288,920 514,147

F.1 Net book value of intangible and tangible fi xed assets sold 288,920 514,147

G.1 Change in provisions and allowances relating to operations and in prepaid expenses

(specifi c-purpose expenses) 14,105 –51,948

IV.1 Other operating revenues 167,978 252,593

H.2 Other operating expenses 232,244 332,748

* Profi t or loss on operating activities –228,987 –170,778

X.1 Interest income 546,781 521,775

N.2 Interest expense 224,785 333,238

XI.1 Other fi nance income 17,199 42,454

O.2 Other fi nance cost 35,912 34,270

* Profi t or loss on fi nancial activities 303,283 196,721

Q. Tax on profi t or loss on ordinary activities 30,562 5,619

Q.1 – due 29,327 23,122

Q.2 – deferred 1,235 –17,503

** Profi t or loss on ordinary activities after taxation 43,734 20,324

XIII.1 Extraordinary gains 1 0

* Extraordinary profi t or loss 1 0

*** Profi t or loss for the year (+/−) 43,735 20,324

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

Cash Flow Statement

for the Years Ended 31 December 2011

Cash fl ows from operating activities

Z. Profi t or loss on ordinary activities before taxation (+/−) 74,296 25,943

A.1. Adjustments to reconcile profi t or loss to net cash provided by or used in operating activities 1,341,217 2,542,781

A.1.1. Depreciation and amortization of fi xed assets and write-off of receivables 1,562,013 2,596,905

A.1.2. Change in allowances 11,069 –51,948

A.1.3. Change in provisions 3,036 0

A.1.4. Foreign exchange differences 3,001 –14,390

A.1.5. (Gain)/Loss on disposal of fi xed assets 84,094 200,751

A.1.6. Interest expense and interest income –321,996 –188,537

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

and extraordinary items 1,415,513 2,568,724

A.2. Change in non-cash components of working capital –541,706 –652,846

A.2.1. Change in inventory 2,267 –11,222

A.2.2. Change in trade receivables –524,725 –240,310

A.2.3. Change in other receivables and in prepaid expenses and unbilled revenue 5,331 40,656

A.2.4. Change in trade payables 145 2,353

A.2.5. Change in other payables, short-term loans and in accruals and deferred income –24,724 –444,323

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

extraordinary items 873,807 1,915,878

A.3.1. Interest paid –253,629 –332,562

A.4.1. Tax paid –27,743 –44,060

A.5.1. Interest received 544,029 516,405

A*** Net cash provided by (used in) operating activities 1,136,464 2,055,661

Cash fl ows from investing activities

B.1.1. Purchase of fi xed assets –591,445 –691,172

B.2.1. Proceeds from sale of fi xed assets 204,826 313,396

B*** Net cash provided by (used in) investing activities –386,619 –377,776

Cash fl ows from fi nancing activities

C.1.1. Change in long-term liabilities and long-term, resp. short-tem, loans –767,503 –2,206,623

C.2.1. Effect of changes in basic capital on cash 0 128,000

C.2.3. Effect of other changes in basic capital on cash 0 256,000

C*** Net cash provided by (used in) fi nancing activities –767,503 –1,822,623

F. Net increase (decrease) in cash –17,658 –144,738

P. Cash and cash equivalents at beginning of year 50,284 112,988

P1. Effect of merger as at 1 January 2010 on cash and cash equivalents 0 82,034

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Notes to the Financial Statements

for the Year Ended 31 December 2011

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 at 31 December 2011. 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 at the date of the entry in the Commercial Regis-ter, the successor company shall act as the universal legal succes-sor 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 2011. 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

A change in the registered address of the Company along with the inclusion of provision and delivery of consumer credits into Com-pany’s scope of business were made to the Commercial Register maintained in the Municipal Court in Prague in 2011.

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

1.3 Organizational Structure of the Company

The Company has no foreign branches.

The organizational structure of s Autoleasing, a. s. is as follows:

Board of Directors

Credit Committee Risk Management Committee

Chairman of Board of Directors and CEO

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

Division 3000

Finance and Managing

Credit Back Offi ce

Credit Risk Management

Customer Service

Portfolio Analysis

Work out and Restructuring

Secretariat and Staff of Board

Division 1000

Administration of the Company

Sales Support and Product Development

Information Technologies and Systems

Chief Sales Offi cer

Region Bohemia I.

Region Bohemia II.

Department 2030 (NS 2030) Region Moravia Division 2000 Sales Department 2040 (NS 3010) 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. fi nancial group. The Company is included in the consolidated group of Česká spořitelna, a. s.

1.5 Board of Directors and Supervisory Board as

at 31 December 2011

Position Name

Board of Directors

Chairman 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 2011, there were no changes in the composition of the Supervi-sory Board and the Board of Directors of the Company.

2. Accounting Methods and General

Accounting Principles

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

The accounting is maintained in compliance with general accounting principles, specifi cally the historical cost valuation basis, the accrual principle, the prudence concept and the going concern assumption. These fi nancial statements are presented in thousands of Czech crowns (CZK), unless stated otherwise.

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.

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

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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 con-tract. 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 Investments

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

Other non-current fi nancial investments include principal of the consumer 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 as-sessed using a statistical model, which determines a specifi c impairment coeffi cient for each contract. The level of the coef-fi 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 purchase. The acquisition cost of securities and ownership in-terests includes direct costs related to the acquisition, e. g. fees and commissions 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.

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 oldest receivable relating to the respective lease contract is applied. For reporting purposes, this calculated allowance is

– –

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then divided into an allowance against assets and an allowance against receivables, based on an analysis of the whole portfolio by commodity, refl ecting the share of allowances arising from prematurely terminated 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 category defi ned by Czech National Bank (“CNB”), 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 share capital of the Company is stated at the amount recorded in the Commercial Register maintained in the Municipal Court. Other capital funds consist of monetary contributions in excess of share 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 share 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 share 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 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 are re-corded through the current period’s fi nancial expenses or income as appropriate.

3.9 Taxes

3.9.1 Depreciation of Fixed Assets for Tax

Purposes

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

3.9.2 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.

The current tax payable is determined using tax rates applicable as at the balance sheet date.

3.9.3 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.

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.

3.10 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.

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3.11 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 relating 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.

–

3.12 Costs

Costs are recorded on the accrual basis, i. e. they are expenses in the year in which they were incurred.

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

3.13 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.

3.14 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. As at 31 Dec 2010 +/– 2011 As at 31 Dec 2011 Cash at bank 50,072 –17,699 32,373 Liquid valuables 212 41 253

Total cash and cash equivalents 50,284 –17,740 32,626

Cash fl ows from operating, investing and fi nancing activities presented in the cash fl ow statement are not offset.

4. Balance Sheet and Income Statement – Additional Information

4.1 Fixed Assets

4.1.1 Intangible Fixed Assets

Acquisition cost

CZK ths. Balance as at 1 Jan 2010

Effect

of merger Additions Disposals Balance asat 31 Dec 2010

Additions Disposals Balance as at 31 Dec

2011

Intangibles in

progress 0 0 250 0 250 17,117 –17,125 242

Patents, royalties

and similar rights 3,663 1,616 5,642 0 10,921 600 0 11,521

Software 43,840 30,730 11,257 0 85,827 16,525 0 102,352

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Accumulated Amortisation

CZK ths. Balance as at 1 Jan 2010 Effect

2011

Intangibles

in progress 0 0 0 0 0 0 0 0

Patents, royalties

and similar rights –1,486 –878 –1,826 0 –4,190 –2,479 0 –6,669

Software –20,792 –17,150 –14,402 0 –52,344 –11,408 0 –63,752

Total –22,278 –18,028 –16,228 0 –56,534 –13,887 0 –70,421

Net Book Value

CZK ths. Balance as at 1 Jan 2010 Balance as at 31 Dec 2010 Balance as at 31 Dec 2011 Intangibles in progress 0 250 242

Patents, royalties and similar rights 2,177 6,731 4,852

Software 23,048 33,483 38,600

Total, incl. allowances 25,225 40,464 43,694

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

Amortisation of Intangible Fixed Assets

CZK ths. 2010 2011

Total 16,228 13,887

4.1.2 Tangible Fixed Assets

Own Tangible Fixed Assets

Acquisition Cost

CZK ths. Balance as at 1 Jan 2010

Effect

Additions Disposals Balance as at 31 Dec 2011 Buildings 562 0 0 0 562 0 –562 0 Individual movable assets 25,834 24,131 2,511 –3,663 48,813 3,518 –4,400 47,931 – machinery and equipment 19,082 16,465 1,260 –2,049 34,758 1,055 –1,966 33,847 – vehicles 6,640 7,666 1,251 –1,614 13,943 2,463 –2,402 14,004

– furniture and fi xtures 112 0 0 0 112 0 –32 80

Other tangibles 213 0 0 –186 27 0 0 27

Tangibles in progress 0 95 2,416 –2,511 0 6,982 –4,315 2,667

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Accumulated Depreciation

of merger Additions Disposals Balance as at 31 Dec 2010

Additions Disposals Balance as at 31 Dec 2011 Buildings –25 0 –11 0 –36 –1 37 0 Individual movable assets –14,644 –15,030 –10,735 3,663 –36,746 –6,214 2,833 –40,127 – machinery and equipment –11,756 –12,786 –7,266 2,049 –29,759 –3,244 1,592 –31,411 – vehicles –2,868 –2,244 –3,460 1,614 –6,958 –2,963 1,230 –8,691

– furniture and fi xtures –20 0 –9 0 –29 –7 11 –25

Other tangibles 0 0 –186 186 0 0 0 0

Total –14,669 –15,030 –10,932 3,849 –36,782 –6,215 2,870 –40,127

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. Balance as at 1 Jan 2010 Balance as at 31 Dec 2010 Balance as at 31 Dec 2011 Buildings 537 526 0

Individual movable assets 11,190 12,067 7,804

– machinery and equipment 7,326 4,999 2,436

– vehicles 3,772 6,985 5,313

– furniture and fi xtures 92 83 55

Other tangibles 213 27 27

Tangibles in progress 0 0 2,667

Total, incl. allowances 11,940 12,620 10,498

4.1.3 Tangible Fixed Assets Held under Leases

Acquisition Cost

CZK ths. Balance as at 1 Jan 2010

Additions Disposals Balance as at 31 Dec 2010

2011

Individual movable assets 12,351,026 497,304 –4,629,427 8,218,903 540,768 –2,812,380 5,947,291

– machinery and equipment 3,637,130 213,957 –1,164,144 2,686,943 194,456 –905,447 1,975,952

– vehicles 8,546,488 282,084 –3,425,561 5,403,011 344,401 –1,854,659 3,892,753

– furniture and fi xtures 167,408 1,263 –39,722 128,949 1,911 –52,274 78,586

Seized assets from client loans 0 0 0 0 4,751 –2,518 2,233

Seized assets from stock fi nancing 0 0 0 0 2,780 –767 2,013

Tangibles in progress 83,548 0 –59,973 23,575 527,482 –540,768 10,289

Advances for tangibles 2,955 56,484 –53,205 6,234 83,216 –58,867 30,583

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Accumulated Depreciation

Additions Disposals Balance as at 31 Dec 2010

2011

Individual movable assets –6,384,782 –2,851,885 4,629,427 –4,607,240 –1,649,095 2,812,380 –3,443,955

– machinery and equipment –1,858,937 –851,588 1,164,144 –1,546,379 –505,081 905,447 –1,146,013

– vehicles –4,426,998 –1,966,446 3,425,561 –2,967,883 –1,126,954 1,854,659 –2,240,178

– furniture and fi xtures –98,846 –33,853 39,722 –92,978 –17,060 52,274 –57,764

Seized assets from client loans 0 0 0 0 –2,518 2,518 0

Seized assets from stock fi nancing 0 0 0 0 –767 767 0

Total –6,384,781 –2,851,885 4,629,427 –4,607,240 –1,652,380 2,815,665 –3,443,955

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

2010

2011

Individual movable assets –171,338 –74,267 123,681 –121,924 –91,669 77,354 –136,239

– tangibles – current contracts –65,049 –28,411 22,811 –70,649 –42,302 58,780 –54,170

– tangibles – prematurely

terminated contracts –106,289 –45,856 100,870 –51,275 –49,367 18,575 –82,067

Advances tangibles –1,032 –6,521 7,553 0 0 0 0

Tangibles in progress –1,613 –6,683 1,613 –6,683 –3,600 0 –10,283

Total –173,983 –87,471 132,847 –128,607 –95,269 77,354 –146,522

Net Book Value

CZK ths. Balance as at 1 Jan 2010 Balance as at 31 Dec 2010 Balance as at 31 Dec 2011

Individual movable assets 5,794,907 3,489,739 2,367,097

– Machinery and equipment 1,606,855 1,069,915 829,939

– Vehicles 4,119,490 2,383,853 1,516,336

– Furniture and fi xtures 68,562 35,971 20,822

Seized assets from client loans 0 0 2,233

Seized assets from stock fi nancing 0 0 2,013

Tangibles in progress 81,935 16,892 6

Advances for tangibles 1,923 0 30,583

Total, incl. allowances 5,878,765 3,506,631 2,401,932

Were the Company to change the method it uses to depreciate leased objects from annuity depreciation to linear depreciation in cases of lease contracts with initial extraordinary instalments as at 31 December 2011 and 2010, the net book value impact would be approximately CZK 3,5 million and CZK 26 million, respectively. The change in depreciation method would lead to a reduction in the amount of net book value by this amount.

Depreciation of Tangible Fixed Assets

CZK ths. 2010 2011

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4.1.4 Financial Investments

Ownership Interests in Subsidiaries

As at 31 December 2011 and 2010, the Company held a 100% and 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. balance as SAL

at 1 Jan 2011

Additions

Revalu-ation Balance as at 31 Dec 2011 DINESIA a. s. 25,612 86 6,338 32,036 Total 25,612 86 6,338 32,036 Subsidiaries CZK ths. as at 1 Jan Balance 2010 Additions

Revalu-ation Balance as at 31 Dec 2010

DINESIA a. s. 23,396 0 2,216 25,612

Total 23,396 0 2,216 25,612

Acquisition Cost

Company

CZK ths. Address Acqui-sition price

Share Voting

rights capitalEquity Profi t for the year dends Divi-per year

Valuation as at 31 Dec 2011

DINESIA a. s. Střelničná 8/1680, Praha 8 2,106 100% 100% 32,036 3,747 0 32,036

Total 2,106 32,036 3,747 32,036

Other Financial Investments

Brutto Value

CZK ths. SAL balance

as at 1 Jan 2010

Effect

of merger Balance as at 31 Dec 2010

Change

in credits Balance as at 31 Dec 2011

Other fi nancial investments 0 2,291,335 2,514,863 184,658 2,699,521

– loans granted – iIndividuals non-enterpreneurs 0 1,404,589 1,530,214 –23,915 1,506,299

– loans granted – individuals enterpreneurs / legal

entities 0 886,746 984,649 208,573 1,193,222 Total 0 2,291,335 2,514,863 184,658 2,699,521

Allowances

of merger Additions Disposals Balance as at 31 Dec 2010

Additions Disposals Balance as at 31 Dec 2011 Allowance against principal – individuals non-enterpreneurs 0 –8,679 –37,184 34,790 –11,073 –19,710 19,203 –11,580 Allowance against principal – individuals enterpreneurs / legal entities 0 –7,109 –31,476 31,888 –6,697 –23,448 20,142 –10,003 Total 0 –15,788 –68,660 66,678 –17,770 43,159 39,345 –21,583

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Net Value

CZK ths. Net value as at 1 Jan 2010 Effect of

merger Net value as at 31 Dec 2010 Net value as at 31 Dec 2011

Other fi nancial investments 0 2,275,547 2,497,093 2,677,938

– loans granted – individuals non-enterpreneurs 0 1,395,910 1,519,141 1,494,719

– loans granted – individuals enterpreneurs / legal entities 0 879,637 977,952 1,183,219

Total 0 2,275,547 2,497,093 2,677,938

4.2 Long-term Receivables

Long-term trade receivables were as follows:

CZK ths. Balance as at 31 Dec 2010 Balance as at 31 Dec 2011 Instalment sales 172,731 200,809

Total long-term trade receivables 172,731 200,809

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

4.3.1 Aging of Trade Receivables

Year CZK ths.

Category Before due date

Past due Total 0–90

days 91–180 days 181–360 days years1–2 more than 2 years

2011 Gross 1,588,156 108,701 70,335 83,355 142,678 147,918 2,141,142 Allowances –445,485 Net 1,695,657 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

Trade receivables represent the aggregate of receivables arising from lease instalments, instalment sales and loan contracts.

CZK ths. Balance as at 31 Dec 2010 Balance as at 31 Dec 2011

Receivables from instalment sales 172,414 133,837

Receivables from lease instalments 270,977 291,253

Receivables from consumer loans 1,557,901 1,716,015

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4.3.2 Allowances against Short-term Receivables

CZK ths. SAL

balance as at 1 Jan 2010

Effect

Additions Disposals Balance as at 31 Dec 2011 Current contracts –34,313 0 –32,010 64,101 –2,222 –12,790 900 –14,112 Prematurely terminated contracts –158,787 –199,703 –18,308 4,158 –372,640 –297,133 302,137 –367,636 Penalty –6,477 0 –4,760 4,379 –6,858 –2,208 1,960 –7,106 Warranty claims –870 0 0 870 0 0 0 0 Contractual penalties –354 0 0 135 –219 –177 217 –179 Bankruptcy –33,388 0 –47,865 29,233 –52,020 –25,069 48,573 –28,516

Contractual fees and

late charges 0 –16,920 –14,354 10,222 –21,052 –12,889 16,783 –17,158 SAU contractual penalties 0 0 0 0 0 –12,338 1,560 –10,778 Total allowance to receivables –234,189 –216,623 –117,297 113,098 –455,011 –362,604 372,130 –445,485 Stock fi nancing –1,733 –52,296 –12,547 25,301 –41,275 –14,076 15,209 –40,142 Total allowances against receivables –235,922 –268,919 –129,844 138,399 –496,286 –376,680 387,339 –485,627

4.3.3 Short-term Receivables including Intercompany Receivables

Name CZK ths. Balance asat 31 Dec 2010 Balance as at 31 Dec 2011 Česká spořitelna, a. s. 40,629 37,274

Total short-term intercompany receivables 40,629 37,274

Receivables to third parties 2,452,279 2,508,334

Total short-term receivables (gross) 2,492,908 2,545,608

4.4 Short-term Financial Assets

CZK ths. Balance as at 31 Dec 2010 Balance as at 31 Dec 2011 Liquid valuables 212 253 Cash 212 253 Current accounts 50,072 32,373 Bank accounts 50,072 32,373

Total short-term fi nancial assets 50,284 32,626

4.5 Prepaid Expenses

CZK ths. Balance as at 31 Dec 2010 Balance as at 31 Dec 2011 Prepaid expense 699,779 692,408 Accrued income 129,125 114,386

Total accrued assets and deferred liabilities 828,904 806,794

Prepaid expenses comprise supplied services invoiced in the current period but partly related to the following period. These expenses will be charged against income in the period to which they relate on the accrual basis.

Prepaid expenses include commissions for the mediation of business transactions. The commission expenses are charged against income over the term of the lease contract.

Unbilled revenues include unbilled lease revenues and unbilled interest on loans granted, which are recognized into income in the year in which they were earned.