Contents.

(1)

(2)

Annual Report 2010 Nadace České spořitelny

■

It gives me great pleasure to once again present to you the Annual Report of the Česká spořitelna Foundation. The Report provides a comprehensive overview of our projects and activities in 2010, as well as information on the Foundation’s financial performance, which was subject to a rigorous audit by Ernst & Young Audit, s.r.o.

The global economic recession had a great impact on foundation endowments, but we are happy to report that we were able to keep our commitments to our long-term partners and continue supporting their valuable projects, which have become very dear to us.

Our commitments remained steadfast due to a clearly defined strategy and focus when it comes to our priorities. These include social inclusion, concentrating primarily on senior citizens and the prevention and treatment of substance abuse; education, namely financial literacy; and sustainable development. The Foundation works closely with key partners in these areas who have a proven track record in making a difference and affecting real change in society. In 2010, we were also able to support many regional non-profit and charity organizations by funding projects of Česká spořitelna´s regional branches. These were predom-inantly smaller local projects with limited fund-raising possibilities.

We are also delighted that the cooperation with our partners is reaching new levels of engagement and that both the Foundation and Česká spořitelna’s employees are becoming more directly involved in their activities and projects. I would like to thank all our partners for reminding us not to be indifferent to the pressing needs of society and encourag-ing us to be the change that we want to see. Without their

dedication and perseverance, we would not be able to fulfil our mission and jointly achieve all that we have.

In conclusion, let me express my gratitude to members of the Administrative and Supervisory Boards for their gene-rous work and commitment, and to Česká spořitelna a.s., founder of the Foundation, for its lasting support and patronage, without which the Foundation’s activities would not be possible.

Mgr. Klára Gajdušková

Chairwoman of the Foundation’s Administrative Board

(4)

REVENUES:

Interest from tax exempt accounts 239 525,16 CZK Interest from securities 14 052 051,75 CZK Exchange rate gains 297 069,92 CZK Sold securities 131 451 728,45 CZK Other revenues 92 825,94 CZK Total 146 133 201,22 CZK EXPENSES: Advertising, publicity 190 368,00 CZK Office lease, utilities, telephones (ČS, a.s.) 181 904,80 CZK Accounting, tax and legal consultancy 78 840,00 CZK Other services 10 533,00 CZK Cross-charged services (ČS, a.s.) 501 480,00 CZK Bank fees, administration

of securities (ČS, a.s.) 99 574,62 CZK Exchange rate losses, financial expenses 2 261 989,18 CZK Cost of sold securities 120 684 767,10 CZK

Total 124 009 456,70 CZK Attained profit 22 123 744,52 CZK

FOUNDATION ASSETS AS OF 31 DECEMBER 2010 Bonds 151 054 990,24 CZK Funds, AFS bonds, financial operations 380 279 143,01 CZK Current account in portfolio 9 764 524,14 CZK Portfolio assets total 541 098 657,39 CZK Current account revenue,

projects 82978319 3 618 747,35 CZK Current account social funds,

employees 82979389 20 615,96 CZK Current account 82511399 3 919,92 CZK Current account - operation 83686369 397 502,92 CZK Current accounts total 4 040 786,15 CZK Cash in hand 1 069,10 CZK

Total 545 140 512,64 CZK

■

Financial Report for

(5)

FINANCIAL DONATIONS GRANTED

BY ČESKÁ SPOŘITELNA FOUNDATION

a) Donations to individuals

The Foundation granted donations to employees of Česká spoři-telna, a.s. or to their survivors for support while in periods of distress. The total value of donations amounted to CZK 180 thousand.

The Foundation also donated CZK 5 thousand monthly to the orphaned daughter of a victim of a criminal act. The total value of donations in 2010 amounted to CZK 30 thousand. Donations ceased along with the her entitlement to such donations. The Foundation also granted donations to individuals affected by floods in the amount of CZK 130 thousand.

The total amount of donations granted to individuals was CZK 340 thousand.

b) Donations to corporate entities (in CZK thousands)

Charita ČR 5 500 SANANIM o.s. 3 340 Nadace Partnerství 1 500 Nadace VIA 1 000 Život90 o.s. 500 Drop IN 500 NF manželů Klausových 450

Podané ruce o.s. 300

Český svaz ochránců přírody 250

Centrum 83 o.s. 20

NF Slunce pro všechny 20 Správa zdravot.a soc.služeb Cheb 20

Klub Auxilium 10

Dětské centrum Znojmo 20 Hvězda SKP Pardubice 20

Zdravá rodina o.s. 52

FN Ostrava 73

OS Na podporu aktivit v NB Romská sekce 20

Srdíčko 20

Akráda o.s. 10

Klik a přijďte k nám o.s. 20

Obec Horní Dubenky 20

Dětský domov Zlín 20

Nadace pro podporu lidí

s mentálním postižením 20

Dialog Jesenius 1 287

Dětské centrum Znojmo 20

Hub o.s. 850

15 862 Total contributions to corporate entitites CZK 15 862 thousand RECEIVED DONATIONS

a) Financial donations from individuals Total value of donations from individuals amounted to CZK 401,20 in 2010.

b) Financial donations from corporate entities No financial donation from corporate entities was received in 2010.

(6)

Retiring from work does not have to mean retiring from life. Living an active life after retirement can mean taking an interest in what is happening and staying involved. Unfortunately, many seniors in our society often live in isolation and feel like they have been forgotten. Modern technology can help them fight that feeling by enabling them to connect with the world, with family, gather information on the internet, send e-mails etc.

Motivated by this vision we supported the 4th_{year of the educational} program Seniors Communicate which is organized in partnership with the Endowment Fund of Livia and Václav Klaus. The program consists of a series of courses run by selected organizations (recipients of grants) across the Czech Republic, where seniors gain knowledge of basic computer skills and learn how to use payment cards and mobile phones. The target groups are seniors who do not have any experience with these modern communication technologies. Each course is designed for 10 to 12 participants providing 12 computer lessons, one lesson dedicated to payment cards and one to mobile phones. The Foundation has been partner of this program since its inception in 2007. Since then, our financial contributions have helped conduct 523 courses in 389 towns giving more than 5,000 students-seniors a chance to “return back to school”. These figures document great interest in this educational program among seniors – the best proof of success is the fact that today most of the graduates confidently “surf the internet”. Employees of Česká spořitelna participate in giving lectures on the advantages and benefits of payment cards to seniors. Last year 94 employees volunteered their time to teach seniors.

■

Helping People in Need: Senior Citizens

”According to recent statistics, over 335 000 people in the Czech Republic are over

80. Each year, more than 400 men and women over 60 commit suicide as a result

of depression, loss of self-esteem and sense of purpose, as well as feeling like they are

a burden to their families and society. Programmes which encourage an active life-style

are often the only motivation for the elderly to stay in touch with the community, and

the only chance to retain or develop skills which help them improve their mental and

physical condition.“

…and in Vojkovice

(source: Endowment fund of Livie and Václav Klaus) Seniors communicate in Nová Role …

(7)

HELPING THOSE IN NEED: SENIOR CITIZENS

The Civic Association Život 90 (Life 90)is one of the “oldest” partners of our Foundation. The partnership began in 1992 with Česká spořitelna and in 2003 it was taken over by the Foundation. During these years we supported the Emergency Care Areíon project and the `website www.seniorum.cz (the only website of its kind in the Czech Republic responding to seniors´ needs and providing up-to-date information and advice to seniors and to their families).

The financial contribution to Life 90 in 2010 helped finance services provided by its Senior Citizens Day Centre. Many senior citizens are physically impaired, alone and forgotten by society and even their own families. This can lead to severe depression and anxiety. The Centre provides a safe place, free of judgement and prejudice. Its aim is to improve quality of seniors´ lives by addressing their specific problems and enabling them to live an active and dignified life in their own homes for as long as possible. The Centre runs a Senior Academy, where seniors can attend educational courses, language lessons, fine art or ceramics courses, practice their sewing skills or attend diverse lectures, and social therapy programs organized by the Ladies Club. It organizes nostalgia gatherings in a “Nostalgic Salon” (offering programs like Night Talks, Literarium, reminiscence exhibitions, collectors´ meetings, etc.) and regular fashion shows. The Centre’s Portus House offers an internet café (which provides its space also for computer courses), a diet canteen and a centre for personal hygiene. In partnership with the Crisis Intervention Unit, the Centre provides counselling on issues such as law enforcement. It also organizes Christmas sightseeing tour of Prague for seniors with physical disabilities, and for sport-loving seniors (aged 60 and over) an an-nual Senior Mile Run.

The Centre encourages an active lifestyle where seniors can meet people, enjoy the company of their peers and share their experiences and life stories. The Centre is a place where they can learn new things and gain new skills according to individual preferences, which makes them much more resilient in every aspect.

”… To us, seniors between 65 to 72 years, the course gave a chance to master

the minimum of the mystery of computers and the internet. It’s a wonderful thing

and it will help us in our practical life, give us self-confidence and enrich our golden

years.” With many thanks

(Senior graduates from Mladá Vožice u Tábora

Travellers Club (source: Life 90)

(8)

HELPING THOSE IN NEED: SENIOR CITIZENS

Our cooperation with Charity ČR (Charita ČR) focuses on a different type of assistance to seniors. Charity ČR provides care to seniors in more than 40 homes for dignified ageing and special nursing homes that create conditions for peaceful and dignified ageing. Contributions of the Foundation also went to support charity activities of individual dioceses and archdioceses, such as the opening of a low-threshold club Vata for children in Židlochovice and a low-threshold centre Zrnko in Vsetín; the purchase of adjustable beds and special shower chairs for the Regional Charity in Strakonice; the completion of construction of the ATRIUM Club for seniors in Hradec Králové; the purchase of a car for Magdala street work (drug prevention project of the Diocese Charity in Litoměřice); construction and repair of the Seniors Home Hnojník (Ostrava and Opava Diocese Charity); laying the foundations of the new social therapy workshop St. Josef in Meclov; and renovation of the Social Rehabilitation Centre of St. Vavřinec (Domažlice) and Seniors Home in Mukařov.

Traditionally, the Foundation supports the organization of the Holy Kings Collection (Tříkrálová sbírka) by Charity ČR. In 2010, this major country-wide volunteer collection was organized for the 10th consecutive year and raised more than 68 million CZK. The proceeds form this charity are traditionally donated to help the sick, disabled, seniors, mothers and children, and to others in need. Some 65% of the proceeds go back to regions where the funds were collected to support local projects and approximately one tenth is distributed for humanitarian assistance abroad.

Seniors from the Home of Dignified Ageing of St Elizabeth, Diocese Charity Plzeň (source: Charity ČR)

Holy King's Collection, 2011 (source: Charity ČR)

(9)

Annual Report 2010 Nadace České spořitelny Helping people who are struggling with substance abuse is another

area where the Foundation contributes on a long-term basis. In particular, it supports services which are not readily available in the country and which are neglected by other donors. Our long-term support to fight drug addiction is one of the three pillars of the Foundation’s strategy. The Foundation has been tackling this issue since 2004, following a four-year commitment by Česká spořitelna. One of the Foundation’s partners in the fight against substance abuse is the civic association SANANIM, which focuses on prevention, treatment, and social rehabilitation of persons addicted to drugs, and on their full re-socialization and return to a normal drug-free life. The Foundation supports projects traditionally targeted at groups with no other treatment alternatives in the Czech Republic. The main target groups include young adults, their parents, and mothers with children.

In 2010, a major part of the financial contribution to SANANIM went to the renovation of a therapeutic community complex in Karlov, which included the completion of the Hájenka farmhouse, reconstruction of roads inside the complex, planting gardens, construction of recreational facilities and a playground for children. Another important part of the grant was used to expand and equip Café Therapy (a social enterprise concept), and for parent counselling combined with “an anonymous coffee shop“. Funds were also used to support mothers in recovery by helping them re-establish healthy relationships with their children. SANANIM also invested part of the funds into new technologies used in prevention and counselling.

■

Helping Those in Need: Drug Addiction

”For the past nine years, the Česká spořitelna Foundation has been helping us provide

services for prevention and treatment of young people and specific groups for which

services in the standard system of care are either completely inaccessible or inadequate.

We applaud your courage to “invest” into this problematic area which is still on the

periphery of society’s interest and where state assistance is not able to address the issue

adequately and effectively.

We consider our cooperation and your continuous support not only as an expression of

trust, but also as an appreciation of our efforts. Your support to the challenging work in

our therapeutic communities, where we face permanent existential uncertainty, cannot

be appreciated enough.“

(Martina Richterová Těmínová, Chairwoman of the Board, Sananim) Therapeutic Community Karlov

(10)

HELPING THOSE IN NEED: DRUG ADDICTION

In fighting drug addiction, the Foundation also cooperates with

DROP IN, the Drug Prevention and Drug Addiction Treatment

Centre.

In 2010 we supported two projects:

A Low Threshold Centre Drop In which has been in operation

since 1992 and focuses on reducing the risky behaviour of illegal drug users and helping them reintegrate back into society. It functions as a first point of contact for those who seek support on their way to recovery. The services are available to all and the Centre reaches out to the most desperate street users through street workers. This type of contact enables users to acquire basic social habits and prepare the ground for subsequent therapeutic work. The Centre’s street worker therapists operate in an unconventional way and have been able to reach out and positively change the lives of so many.

In 2010, the Centre contacted approximately 1,000 clients (of which 800 were men, some of them registered users, but mostly anonymous clients). The Centre’s services, mainly counselling, were provided to 124 family members of drug users. The Centre made more than 15,000 contacts (of which 43 were first contacts) and handed out more than 8,000 syringes. A total of 62 persons were sent for abstinence based treatment and 25 to methadone programmes. The Centre responded to approximately 2500 phone calls and e-mails.

The Centre of Methadone Substitution and Detoxification

Drop Inlocated in Prague 1 and Prague 2 provides services to

clients who come from the Low Threshold Centre or from other cooperating organizations and programs under Drop In. The Centre’s program is based on an outpatient psychiatric therapy concept using a methadone and buprenorphine substitution treatment in a high threshold regime and is targeted at more socialized clients. Its aim is to motivate clients who have successfully completed the low-threshold substitution treatment in their search for legal employment. The primary benefit of this concept is that it helps stabilize the lifestyle and enables re-socialization of its clients.

Evolution-Dramatherapy as one of the therapeutic methods (source: Sananim)

■

”It has never been our goal to defend “addicts”, or make their life easier. Our shared

phi-losophy has always been to enable them – with their own will and with our help – to

suc-cessfully overcome their addiction and succeed in social rehabilitation. To us, a “cured”

client is one who has successfully gone through the treatment process, after which he/she

is able to abstain from any use of narcotics and live a normal life – that is work, pay taxes

and debts resulting from the previous drug career, study, raise children, establish “normal”

relationships with drug-free partners and have healthy family relations. Mothers should

be able to take proper care of their children and give them loving homes…The key principle

of our treatment is to provide living conditions during therapy which are similar to those

in the outside world. We use a range of activities and psychotherapeutic methods like group

therapy, individual therapy, regime and rules, family and parent counselling, training

and education, work therapy, leisure time activities, video training, etc. In addition, we

help our clients work through and resolve the negative social consequences of their drug

use: we register them with the relevant employment office, help them acquire new personal

documents (ID card, health insurance), we act as intermediary for contacts with the police,

courts, probation officers. Our objective is to resolve their past criminal problems while

under treatment in the community. Finally, we help them deal with health problems by

ar-ranging necessary psychiatric and other special medical care.“

(11)

HELPING THOSE IN NEED: DRUG ADDICTION

For three consecutive years the Foundation has been contributing funds to Manufacture, a project of the civic association Extended

Hands (Podané ruce). The association promotes a complex approach

to preventing, treating and helping people with problems resulting from drug abuse and with addictive behaviours. The services are provided in contact centres in seven cities (in South Moravia, and in the Olomouc and Zlín regions). It also specializes in street programs and primary prevention by working with children and young people in schools and during their leisure time activities. Approximately one hundred schools from the three regions have already joined the project.

As in 2008 and 2009, the Foundation donated funds to a work rehabilitation program in EIKÓN, a protected workshop providing work and support to clients who want to return to normal life in society. The aim of the therapy workshop is to separate its clients from the drug lifestyle. EIKÓN helps them gain a realistic view of their own skills and life perspectives by developing their competences, discipline and communication skills. Clients learn to work in teams, deliver quality work and be reliable. The target group is former drug addicts, mostly clients of the Extended Hands association who, due to social exclusion, have difficulties in finding work on the open labour market. The workshop is most effective when it can employ clients in a long-term program. These clients ensure program continuity, serve as a good example for newcomers, help them gain basic skills and ensure the workshop’s minimum on-going production.

Last year the Foundation partnered with a public benefit corporation

Dialog Jesseniusto support its drug prevention educational project

“Can I Help You?” The project is aimed at high schools and addresses the prevention of risky behaviours, as well as the implementation of an efficient mechanism in the education system which is promoted by the students themselves. The idea of the project is to attract young people to meaningful leisure time activities, such as creative workshops. They can join creative laboratories (film, fine arts, music, photography or interactive) where they can produce their own campaigns against various forms of addiction like drugs, smoking, alcohol, workaholism, gambling, shopping, sex or food addiction.

”…I am still clean. I’ve been abstaining for the past year and seven months… I know what

they say: “… you will never stop fighting with it for the rest of your life. Once an addict,

always addict.” Not in my case, believe me. I do not feel tempted any more, do not miss it,

in fact, I don’t think about it and am not scared of it any more, have no feelings associated,

I simply don’t care about drugs….. all drugs without exception, I mean I haven’t had any

drug except alcohol for the last year and seven months. I do not even care if I see somebody

“smashed” on the street, feel no pity anymore. I have quit completely, it’s the END. I hope

I will never come back here, this is definitely behind me. Take care and have fun."

(M.)

Therapeutic Manufacture EIKÓN (source: občanské sdružení Podané ruce)

Art Academy - Street Art (source: Dialog Jessenius)

(12)

Česká spořitelna and its Foundation firmly believe that a prosperous future can only be achieved by ensuring the balance between social and economic progress, and the preservation of the environment. This fully corresponds with our corporate social responsibility strategy, which the Foundation implements by providing financial resources to support sustainable development.

Our commitment to society and the environment is reflected in the long-term partnerships with organizations that successfully contribute to sustainable development.

VIA Foundation (Nadace Via)

In 2010 we provided funding to the grant program “The place where we live” for the seventh time in a row. The program supports the development and revitalization of public spaces through local projects which actively involve local residents. Public spaces can be parks, green areas, courtyards or streets in residential areas or vacant and idle areas in villages, towns or housing estates. The program creates an opportunity for close cooperation among local non-profit organizations, local authorities, businesses and local communities. Each year five selected applicants receive grants and, more importantly, professional guidance for the entire duration of the project. The donation serves as a “starting grant” and selected recipients have to raise the remaining project funds themselves.

Another condition is that local residents are allowed to participate in the project planning and implementation process, where they would volunteer their time.

In 2010, the following projects received grants:

● ”The Jamboree Garden“(Kyjovice, Opava region) – has

become a lively social centre and gathering place in Kyjovice.

● ”Ohařská náves“ (Ohaře, Central Bohemia) – jointly planned

and revitalized public spaces in the village.

● ”Živé srdce Jarošova“ (Jarošov nad Nežárkou, South Bohemia)

– a place where people of all generations in this South Bohemian town can come and relax.

● ”Kololeč“ (Třebenice, Ústí region) – a project which helped

revitalize village greens, transforming them into a meeting point for weekend house owners. It also established close relations within the local community and motivated people to come toge-ther to work for a common goal.

● ” The Relaxation and Learning Centre“ (Dešenice, Plzeň

region) – is an extension of the recently converted recreation area in Dešenice. The former swamp area was cultivated and now serves as a type of nature centre providing ecological education, and the surrounding “dry” areas were transformed to provide educational programmes, leisure time activities and a natural swimming pool.

■

Sustainable Development

(13)

SUSTAINABLE DEVELOPMENT

Partnership Foundation (Nadace Partnerství)

Partnership Foundation is the foremost Czech foundation supporting sustainable development projects in all regions of the country. During its 20-year existence it provided donations to more than 2,700 projects of non-profit organizations, schools, communities and individuals exceeding 238 million CZK.

In 2010, our Foundation was again the general partner of “Greenways”, the grant program of Partnership Foundation. The essence of Greenways is sustainable development through the preservation of the quality of life and the protection of scarce natural resources. It works to raise historic and cultural awareness and combine business activities with a positive environment and healthy lifestyle.

Greenways are natural paths, roads and corridors which are utilized in harmony with their ecological function and potential for sports, tourism and recreation. They bring benefit to nature conservation and the protection of cultural landmarks, improve mobility, offer opportunity for recreation and tourism and encourage a healthier lifestyle and sustainable utilization of local resources. Greenways create an opportunity for citizens, local authorities and businesses to come together and plan improvements in their community. Our Foundation provided resources to fund 15 grants, mainly for cycling tourism projects on already existing Greenways. Grants were also used to organize and support activities on Greenways, such as Earth Day (tree planting along Greenways), Bike Week (promotional bicycle tour on the Prague – Vienna Greenway), opening of wine season on the Moravian Wine Trails, and European Mobility Week. Part of the donation was used to support cross-border projects developed jointly with our neighbouring countries in order to promote a unified approach to improving and upgrading Central European Greenways.

In 2010, some 350 municipalities joined Greenways activities and signs was added or repaired on 615 km of trails.

”What’s important about our project? It is not just the result itself, but much more

the fact that people want to change things, get to know each other, talk together, have fun

and see the value of their own work. And the fact that they will want to improve and

develop further what they have created…“

(Helena Boučková, Project Manager, Dešenice)

…a new trail on the Czech part

of the Elbe Greenway … FOTO: Pavel Mucha (source: Partnership Foundation)

Herb garden in Valtice, one of the projects on Pra-gue - Vienna Greenway

(14)

SUSTAINABLE DEVELOPMENT

Czech Union of Nature Conservation (Český svaz ochránců přírody, ČSOP)

The nation-wide network of rescue stations for handicapped animals of the Czech Union of Nature Conservation, which takes care of injured and young orphaned wild animals and ensures rescue transfers of animals endangered by human activity, was established in 1997 and Česká spořitelna has been supporting its activities from the very start. The Foundation took over the partnership in 2006 and became the general partner of the rescue stations and their campaign “Animals in Need”. Our cooperation still continues today.

There are 26 rescue stations across the country taking care of handicapped animals. They operate within specified territories covering the entire Czech Republic and provide complex care to stray animals, i.e. their transfers, first aid, veterinary care, rehabilitation, preparation for and return back to nature. Each year about 55% of animals return back to the wild. This country-wide outreach this model of rescue stations is unique in the world. Several hundred volunteers, who are all members of ČSOP, work in rescue stations. In 2010, they rescued and provided care to more

than 11,000 animals. The number of injured or handicapped animals grows each year which puts the rescue stations under constant existential uncertainty and pressure due to lack of funds. In 2010, the Czech Union of Nature Conservation raised 7 million crowns to operate the rescue stations but this amount covered just about one fifth of their indispensable costs.

The recently launched “Animal in Need” collection tries to help the rescue stations become less dependent on state subsidies and grants and it also involves general public. People can either make contributions directly to the collection’s account no. 33553322/0800 or send a donation DMS (DMS ZVIREVNOUZI) to 87 777. In 2010, the contributions totalled CZK 714 314 and more than 7,000 DMS were sent.

Since the end of last year, ČSOP offers on its website

http://www.zvirevnouzi.cza quick search of the nearest rescue

station if somebody finds an injured or handicapped animal. Information can also be obtained through the central rescue helpline

774 155 155.

Animals under rescue stations care can be watched online on

www.praha.zachranazvirat.cz.

”We are very grateful for the partnership with the Foundation of Česká spořitelna.

Thank you! We hope we will have more chances to meet, ideally when returning healed

animals back to the wild.“

(Lucie Matulová, Coordinator of the Animal in Need collection)

(15)

SUSTAINABLE DEVELOPMENT

Our partners are supported not only by the Foundation, but also through the direct involvement of Česká spořitelna’s employees. Since 2007, employees can dedicate two working days each year to help the non-profit sector. For the past four years more than 4,434 employees participated in “Charity Days” by volunteering their time to do manual work or by offering their professional knowledge and skills in 119 organizations throughout the country. Organizations included the Foundation’s partners such as the Czech Union of Nature Conservation (especially its regional unit in Prostějov) and the Portus Senior Citizens’ Centre, which is run by the civic association Life 90.

■

Involvement of Česká spořitelna´s

Employees

Volunteers from Česká spořitelna helping during the Charity Days (source: Česká spořitelna)

(16)

We successfully continued to help non-profit and charity organizations throughout the country by supporting local projects of Česká spořitelna’s regional branches. This enables the Foundation to finance smaller projects in regions that have limited access to funding.

Some examples of local projects which we supported in 2010 include an effort to provide leisure time activities for young Roma and other socially excluded groups in Nový Bydžov; the Star SKP Club Pardubice which supports activities of physically handicapped athletes; a Children’s Centre in Znojmo (special care centre for handicapped children); the Arkada Civic Association (a long-term support program for socially and physically handicapped children from the Písek region); the Heart Association which helps the physically handicapped in Kolín; and the Auxilium Club in Vsetín, which associates families taking care of physically impaired children (the donation was used to purchase equipment for children

with multiple handicaps). For a complete list of all our partners see the Financial Report.

■

Our Foundation in the Regions

The Česká spořitelna Foundation would like to thank Česká spořitelna, a.s., its Founder, Ernst & Young Audit, s.r.o. and all its partners for their kind support.

■

Acknowledgements

In compliance with the Foundations and Foundation Funds Act No. 227/1997 Coll. the Supervisory Board of the Foundation of Česká spořitelna reviewed the annual financial statements as of 31 De-cember 2010 and the annual report on the Foundation´s activities and economy for 2010 and came to the conclusion that accounting records and bookkeeping were properly kept in accordance with accounting regulations and that the annual financial statements truly present the financial situation of the Foundation of Česká spořitelna. The annual financial statements were audited by Ernst & Young Audit, s.r.o. which confirmed that the financial statements present fairly, in all material respects, the assets, liabilities, equity capital

and financial position of the Foundation of Česká spořitelna as at 31 December 2010 and its financial position for 2010 in accordance with the Accounting Act and applicable Czech regulations. The Supervisory Board acknowledged and agreed with this audi-tor’s opinion on the financial statements.

Martin Němeček

Chairman of the Foundation’s Supervisory Board

■

Report of the Supervisory Board

The Sun for All Foundation, project of the regional branch in Kladno.

(17)

■

Audit Report

INDEPENDENT AUDITOR'S REPORT

To the Board of Administration of Nadace České spořitelny:

We have audited the financial statements of Nadace České spořitelny (“the Company”) as at 31 December 2010 presented in the annual report of the Company on pages 18 - 30 and our audit report dated 30 May 2011 stated the following:

“We have audited the accompanying financial statements of Nadace České spořitelny, which comprise the balance sheet as at 31 December 2010, and the income statement, for the year then ended, and a summary of significant accounting policies and other explanatory notes. For details of Nadace České spořitelny see Note 1 to the financial statements.

Board of Administration’s Responsibility for the Financial Statements

The Board of Administration is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the Czech Republic, and for such internal control as the board of administration determines is necessary to enable the preparation of financial 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 financial 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including an assessment of the risks of material misstatement of the financial 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 financial 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 presentation of the financial statements.

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

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Nadace České spořitelny as at December 31, 2010, and its financial performance for the year then ended in accordance with accounting principles generally accepted in the Czech Republic.”

We have also audited the consistency of the annual report with the financial statements described above. The management of Nadace České spořitelny is responsible for the accuracy of the annual report. Our responsibility is to express, based on our audit, an opinion on the consistency of the annual report with the financial 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 reflected in the financial statements is consistent, in all material respects, with the financial statements. We have checked that the accounting information presented in the annual report is consistent with that contained in the audited financial statements as at 31 December 2010. Our work as auditors was confined 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 financial statements described above.

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

Magdalena Soucek Partner

Irena Liškařová Auditor, License No. 1146

30 May 2011 Prague, Czech Republic

(18)

BALANCE SHEET AS AT 31 DECEMBER 2010

in CZK thousands

Line Current period Current period

A S S E T S opening balance closing balance

A. Total fixed assets 001 490 370 531 334

III. Total long-term investments 021 490 370 531 334

3. Held to maturity debt securities (063) 024 141 571 151 055

6. Other long-term financial assets (069) 027 348 799 380 279

B. Total short-term assets 041 51 118 13 806

III. Total short-term investments 072 50 776 13 806

1. Cash (211) 073 1 1

3. Bank accounts (221) 075 50 775 13 805

IV. Total other assets 081 342 0

2. Accrued revenue (385) 083 342 0

TOTAL ASSETS 085 541 488 545 140

(19)

BALANCE SHEET

BALANCE SHEET AS AT 31 DECEMBER 2010

in CZK thousands

Line Current period Current period

L I A B I L I T I E S opening balance closing balance

A. Total equity and liabilities 086 540 184 544 307

I. Total equity 087 551 278 533 277

1. Equity (900) 088 501 000 501 000

2. Funds (911) 089 35 282 19 080

3. Gain or loss on revaluation of assets and liabilities (921) 090 14 996 13 197

II. Total Profit/ (loss) 091 -11 094 11 030

1. Account of profit/ loss( (963) 092 16 522 22 124

3. Retained profits, accumulated losses

from previous years (932) 094 -27 616 -11 094

B. Total equity and liabilities 095 1 304 833

III. Total current liabilities 106 1 262 708

1. Suppliers (321) 107 340 255

16. Payables from fixed term transactions (373) 122 868 446

22. Unbilled deliveries (389) 128 54 7

IV. Total other liabilities 130 42 125

1. Accruals (383) 131 42 125

(20)

INCOME STATEMENT AS AT 31 DECEMBER 2010

in CZK thousands

Text For the accounting period 2009

Line

Main activity Operational _activity Total Total

A. E X P E N S E S 001

II. Total services 007 963 0 963 438

8. Other services (518) 011 963 963 438

III. Total personnel expenses 012 0 0 0 411

9. Wages and salaries (521) 013 307

10. Mandatory social security insurance (524) 014 104

V. Total other expenses 022 2 362 0 2 362 2 192

21. FOREX losses (545) 027 1 171 1 171 156

24. Other expenses (549) 030 1 191 1 191 2 036

VI. Total depreciation, asset disposals,

creation of reserves and provisions 031 120 685 0 120 685 165 045

27. Securities and ownership interests sold (553) 034 120 685 120 685 165 045

TOTAL EXPENSES 043 124 010 0 124 010 168 086

(21)

PROFIT AND LOSS ACCOUNTS

INCOME STATEMENT AS AT 31 DECEMBER 2010

in CZK thousands

Text For the accounting period 2009

Line

Main activity Operational _activity Total Total

B. R E V E N U E S 044

IV. Total other revenues 059 537 0 537 1 924

15. Interest (644) 063 240 240 794

16. FOREX gains (645) 064 297 297 1 130

18. Other revenues (649) 066 0 0 0 52

V. Total revenue from sold assets,

release of reserves and provisions 067 145 597 0 145 597 182 684

20. Proceeds from sale of securities

and ownership interest (653) 069 131 452 131 452 167 515

22. Proceeds from short-term financial assets (655) 071 93 93 130

24. Proceeds from long-term financial assets (657) 073 14 052 14 052 15 039

TOTAL REVENUES 081 146 134 0 146 134 184 608

C. PROFIT/LOSS BEFORE TAXATION 082 22 124 0 22 124 16 522

(22)

Company Name: Nadace České spořitelny (Česká spořitelna Foundation) Registered Office: Prague 4, Olbrachtova 62 čp. 1929, CZ - 140 00 Legal Form: Foundation

Corporate ID: 265 06 980

CONTENS

1. GENERAL OVERVIEW 23

1.1. Establishment and Description of the Foundation 23

1.2. Organisational Structure of the Foundation 23

1.3. Administration and Supervisory Boards of the Foundation 23

1.4. Changes in the Composition of the Administration and Supervisory Boards,

Changes in the Foundation Register 23

2. ACCOUNTING METHIDS AND GENERAL ACCOUNTING PRINCIPIES 23

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 24

3.1. Securities 24

3.2. Derivative Financial Instruments 24

3.3. Revenues 24

3.4. Foreign Currency Translation 24

3.5. Funds 24

3.6. Year-on-Year Changes in Valuation, Depreciation or Accounting Policies 24

4. ADDITIONAL INFORMATION ON THE BALANCE SHEET AND PROFIT

AND LOSS ACCOUNT 25

4.1. Long-Term Financial Assets 25

4.1.1. Debt Securities Held to Maturity 25 4.1.2. Other Long-Term Investments 26

4.2. Short-Term Financial Assets 27

4.2.1. Bank Accounts 27

4.3. Accrued Income 27

4.4. Equity 27

4.5. Short-Term Payables 29

4.6. Unbilled Deliveries 29

4.7. Corporate Income Tax 29

4.8. Accrued Expenses 29

4.9. Expenses 29

4.10. Revenues 30

5. ADDITIONAL INFORMATION 30

■

Notes to the Financial Statements

(23)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

1.1. Establishment and Description of the Foundation

Nadace České spořitelny (hereinafter the ‘Foundation’) was established by Česká spořitelna, a.s., company registration number: 452 44 782, with its registered office located in Prague 4, Olbrachtova 62/1929. The Foundation was entered in the Foun-dation Register kept in the Municipal Court in Prague, Section N, File No. 433 on 30 January 2002. The registered office of the Foundation is located at Olbrachtova 62/1929, 140 00 Prague 4.

The principal purpose of the Foundation is to provide:

• Support of projects related to culture, education and science, public and social affairs, health care, charity, municipal activities, sport and ecology; and

• Assistance to individuals in distressed life or social situations caused by unforeseeable events.

The Foundation’s capital amounts to CZK 501,000 thousand. The capital consists of securities administered by Česká spořitelna, a.s. pursuant to the Contract on Administration of Securities and Procurement and Settlement of their Trading entered into between Česká spořitelna, a.s. and the Foundation as of 4 May 2004, and cash at an account maintained with Česká spořitelna, a.s. The Foundation’s capital upon its establishment consisted of a CZK 500 thousand cash deposit made by the promoter. The total Foundation’s capital must be in excess of CZK 500 thousand and must not drop below this limit during the existence of the Foundation. The Foundation’s capital may be composed only of cash, securities, movable and immovable assets as well as other asset titles or values which meet the condition of generating permanent returns and are not subject to lien.

1.2. Organizational Structure of the Foundation The activities of the Foundation are managed by the Admini-stration and Supervisory Boards.

1.3. Administration and Supervisory Boards of the Foundation as at 31 December 2010

Administration Board

Chairwoman Mgr. Klára Gajdušková

Members Gernot Mittendorfer

Michael Mauritz JUDr. Petr Liška Ing. Daniel Heler Ing. Jiří Škorvaga

Vera Maria Budway-Štrobachová

Supervisory Board

Members Ing. Martin Němeček

Ing. Ivan Vondra Ing. Richard Brejník

Any two of the following members of the Administration Board act jointly on behalf of the Foundation: Mgr. Klára Gajdušková, Ing. Jiří Škorvaga, Ing. Daniel Heler, Vera Maria Budway -Štrobachová a JUDr. Petr Liška, by adding their signatures to the name of the Foundation.

1.4. Changes in the Composition

of the Administration and Supervisory Boards, Changes in the Foundation Register

Gernot Mittendorfer resigned from his position as a member of the Administration Board as at 31 December 2010. Ing. Pavel Kysilka was appointed to his position on 10 March 2011.

1. Background

The Foundation’s accounting is maintained in accordance with Accounting Act No. 563/1991 Coll., as amended, Regulation No. 504/2002 Coll. which provides implementation guidance on certain provisions of the Accounting Act for reporting entities whose primary activities are not focused on business, and a Notice issued by the Czech Finance Ministry which establishes the chart of accounts, accounting principles and policies, framework for the presentation and the content of the financial statements for non-profit organizations, and Czech Accounting Standards for entities whose primary activities are not focused on business.

the accruals principle, the prudence concept and the going concern assumption.

These financial statements are presented in thousands of Czech crowns (‘CZK’).

Explanation Added for Translation into English

These financial statements are presented on the basis of accounting principles and standards generally accepted in the Czech Republic. Certain accounting practices applied by the Company that conform

2. Accounting Methods

(24)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

3.1. Securities

Securities held by the Foundation are classified in accordance with the security administration strategy. Upon initial recognition, securities are valued at cost. The cost includes direct transaction costs related to the acquisition of securities.

Securities Available for Sale

Securities available for sale are securities held by the Foundation with the intention to be held for an indefinite period of time over which the securities can be sold due to their liquidity or a change in the market situation.

Securities available for sale are recognized initially at cost and subsequently premeasured at their fair value. The carrying amount of securities available for sale is reported as ‘Other long-term financial assets’. The changes in the fair value of securities available for sale are reported in equity under ‘Valuation differences and revaluation of assets and liabilities’ with the exception of their impairment and interest income and foreign exchange gains or losses arising from debt securities.

Interest income arising from coupons, amortization of discount or premium and dividends are recognized as ‘Proceeds from long-term financial assets’. Interest expense and impairment of securities available for sale are recognized within expenses.

Securities Held to Maturity

Securities held to maturity are financial assets with fixed maturity which the Foundation intends and is able to hold to maturity. Securities held to maturity are recognized initially at cost and subsequently remeasured at their amortized cost using the effective interest rate. The carrying amount of these securities held to maturity is reported in ‘Debt securities held to maturity’.

The amortized premium or discount is included in ‘Proceeds from long-term financial assets’.

The interest income accrued while the securities are held is included in the cost of the securities and is recognized in the securities asset account with a corresponding entry to the interest income account. The accrued interest income comprises accrued coupons.

Interest expense and impairment of securities held to maturity are recognized within expenses.

3.2. Derivative Financial Instruments

The Foundation enters into currency swaps to mitigate the currency risk arising from securities denominated in foreign currencies. These derivatives are defined as derivatives held for trading. The settlement of these financial transactions is recognized through profit or loss.

Valuation

Derivatives are recognized initially at cost. The cost includes the direct costs related to the acquisition, e.g. fees and commissions paid to agents, consultants and stock exchanges.

Derivatives are revalued to fair value as at the balance sheet date. The fair value is determined by reference to a reasonable estimate. 3.3. Revenues

Finance income:

a) for debt securities carrying an interest rate, interest income represents the income determined by this rate; and

b) for discounted debt securities, interest income represents the difference between the nominal value of the bond and its cost. Proceeds from sale of securities are recognized using settlement date accounting.

3.4 Foreign Currency Translations

During the current accounting period, amounts denominated in foreign currencies are translated into Czech crowns at a fixed yearly exchange rate of the Czech National Bank (‘CNB’) prevailing as at 31 December of the preceding accounting period and, at the end of the current accounting period, are adjusted to the CNB’s exchange rates as published as at 31 December of the current accounting period.

3.5. Founds

The Foundation recognizes granted and received contributions (donations) in equity through the caption ”Funds” of account 911. 3.6. Year-on-Year Changes in Valuation,

Depreciation or Accounting Policies

During the current accounting period, no material year-on-year changes were made with respect to the valuation, depreciation or accounting policies.

(25)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

4.1. Long-term Investments

The Company’s long-term investments comprise securities (participation certificates issued by bond funds, equity funds, money market funds and shares) in the aggregate amounts of CZK 531,334 thousand and CZK 490,370 thousand as at 31 December 2010 and 31 December 2009, respectively.

Securities are administered by Česká spořitelna, a.s. in accordance with the Agreement on Securities Administration and represent part of the Foundation’s capital.

4. Additional Information on the Balance Sheet

and Profit and Loss Account

4.1.1. Debt Securities Held to Maturity

As at 31 December 2010

Name Currency Quantity Purchase price Volume in CZK thousands GOV.BOND 3,75 09/20 CZK 5 500 91,66 51 734 CZ0001001317 GOV. BOND 4,7 09/12/22 CZK 3 000 94,17 28 873 CZ0001001945 GOV.BOND 4,2 4/12/2036 CZK 1 000 89,51 9 024 CZ0001001796 GOV. BOND 4,6 08/18 CZK 1 000 94,30 9 700 CZ0001000822 GOV.BOND 3,8 04/15 CZK 1 000 95,02 9 925 CZ0001001143 GOV. BOND 4 04/11/17 CZK 1 000 94,50 9 858 CZ0001001903 GOV. BOND 5 04/11/19 CZK 2 200 95,25 21 885 CZ0001002471 GOV.BOND 3,85 09/29/2021 CZK 1 000 100,24 10 056 CZ0002851 Total 151 055

Name Currency Quantity Purchase price Volume in CZK thousands GOV.BOND 3,75 09/20 CZK 5 500 91,66 51 767 CZ0001001317 GOV. BOND 4,7 09/12/22 CZK 3 000 86,45 29 334 CZ0001001945 GOV.BOND 4,2 4/12/2036 CZK 1 000 89,51 9 012 CZ0001001796 GOV. BOND 4,6 08/18 CZK 1 000 94,30 9 750 CZ0001000822 GOV.BOND 3,8 04/15 CZK 1 000 95,02 10 083 CZ0001001143 GOV. BOND 4 04/11/17 CZK 1 000 94,50 9 814 CZ0001001903 GOV. BOND 5 04/11/19 CZK 2 200 94,70 21 811 CZ0001002471 Total 141 571

(26)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

4.1.2. Other Long-Term Investments

Name Currency Quantity Cost Volume in CZK thousands ESPA FIDUCIA (A) CZK 1 250 000 101,075 117 925 AT000675749

ETFS ALL COMMOD DJ-AIGCISM USD 53 000 263,984 16 885 GB00B15KY989

EASYETF FTSE EPRA EUROZONE EUR 1 000 4 325,886 4 328 LU0192223062

ETFS ENERGY DJ-AIGCISM USD 20 000 240,507 4 511 GB00B15KYB02

CEZ 5.75 EUR 05/20/15 EUR 200 99,861 5 702 XS0430082932

CEZ VAR 12/21/12 CZK 4,00 100,000 6 054 XS0473872306

CESKA SPORITELNA 3,5 12/18/12 CZK 10 100,000 15 283 CZ0003702268

CESKA SPORITELNA VAR 10/16 CZK 41 95,048 38 827 CZ0003701187

E. ON INTERNATIONAL VAR 03/12/13 CZK 2 100,000 4 024 XS0350806351

ISCS INSTITUCIONALNI AKCIOVY CZK 84 120 444 1,129 114 269 CZ0008473030

ETFS AGRICULTURE DJ-AIGCISM USD 10 000,00 115,851 1 763 GB00B15KYH63

GOVERNEMENT BOND 3.4 09/01/15 CZK 2 000,00 100,650 20 765 CZ0001002737

SEVERN TRENT WATER VAR 06/04/12 CZK 5,00 99,000 9 986 XS0303138100

ERSTE BANK 2,53 09/13/13 CZK 10,00 100,000 19 957 AT000B004965

Total 380 279

Name Currency Quantity Cost Volume in CZK thousands

ESPA FIDUCIA (A) CZK 1 250 000 101,075 119 387 AT000675749

ETFS ALL COMMOD DJ-AIGCISM USD 30 000 241,051 8 210 GB00B15KY989

EASYETF FTSE EPRA EUROZONE EUR 1 000 3 411,935 4 216 LU0192223062

ETFS ENERGY DJ-AIGCISM USD 35 000 240,507 8 923 GB00B15KYB02

CEZ 5.75 EUR 05/20/15 EUR 200 99,861 5 971 XS0430082932

CEZ VAR 12/21/12 CZK 4,00 100,000 6 004 XS0473872306

CESKA SPORITELNA 3,5 12/18/12 CZK 10 100,000 14 703 CZ0003702268

ESPA CESKY FOND ST DLUHOPISU (A) CZK 559 625 98,280 57 205 AT0000633763

ISCS FOND ALTERNAT INVESTIC CZK 10 029 084 0,997 8 016 CZ0008472552

E. ON INTERNATIONAL VAR 03/12/13 CZK 2 100,000 4 033 XS0350806351

ISCS INSTITUCIONALNI AKCIOVY CZK 61 484 158 0,993 77 249 CZ0008473030

LYXOR ETF RUSSIA EUR 7 500 533,398 5 145 FR0010326140

(27)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

4.2. Short-term financial assets 4.2.1. Bank accounts

4.3. Accrued income

Accrued income consists of interest on term deposit credited by bank after the end of the current period. 4.4. Equity

Statement of Changes in Equity

The Foundation’s Capital

The Foundation’s capital amounts to CZK 501,000 thousand. The capital consists of securities administered by Česká spořitelna, a.s. pursuant to the Contract on Administration of Securities and Procurement and Settlement of their Trading entered into between Česká spořitelna, a.s. and the Foundation.

Funds

The Foundation funds represent special-purpose funds used for granting donations. The funds are generated by funding from third parties and from the net profit of the Foundation.

Profit or loss account / profit or loss subject to approval procedure

Pursuant to the decision made by the Foundation’s Administration Board on 23 June 2010, the 2009 profit totaling CZK 16,522 thousand was added to retained earnings.

Received Donations

In the current period, the Foundation received no donations from legal entities.

Granted Donations

(in CZK thousands) 31 December 2010 31 December 2009 Portfolio bank accounts 9 765 30 885 Term deposits - 17 000 Current accounts 4 040 2 890 Total 13 805 50 775

(in CZK thousands)

Registered Foundation Valuation Curent Retained

Foundation funds differences year’s profit earnings Total

capital or loss

Zůstatek k 1.1.2010 501 000 35 282 14 996 16 522 -27 616 540 184

Rozdělení hospodářského výsledku - -16 522 16 522

-Poskytnuté dary - 6 202 - - - -16 202

Změny oceňovacích rozdílů - - -1 799 - - -1 799

HV běžného účetního období - - - 22 124 - 22 124

Zůstatek k 31.12.2010 501 000 19 080 13 197 22 124 -11 094 544 307

(in CZK thousands)

Registered Foundation Valuation Loss Retained

Foundation funds differences for earnings Total

capital the period

Zůstatek k 1.1.2009 501 000 49 571 -32 062 -29 616 2 000 490 893

Rozdělení hospodářského výsledku - - - 29 616 -29 616

-Poskytnuté dary - -14 289 - - - -14 289

Změny oceňovacích rozdílů - - 47 058 - - 47 058

HV běžného účetního období - - - 16 522 - 16 522

(28)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

Summary of donations granted to legal entities

The total amount of donations granted to individuals was CZK 340 thousand in 2010. The funding of CZK 210 thousand was paid to support individuals in distressed life situations and donations of CZK 130 thousand were granted to individuals affected by floods. The total amount of donations granted to individuals was CZK 665 thousand in 2009.

4.5. Short-term payables

Short-term trade payables principally represent outstanding invoices for rental and recharged wage costs of the Česká spořitelna, a.s. employees who ensure the Foundation’s operations.

Payables from fixed term transactions include the fair value of FX swaps which will be settled in 2011.

(in CZK thousands) 2010 2009 Charita ČR 5 500 5 500 SANANIM o.s. 3 340 3 334 Nadace Partnerství 1 500 1 500 Nadace VIA 1 000 1 000 Život90 o.s. 500 500 Drop IN 500 500 NF manželů Klausových 450 450

Podané ruce o.s. 300 300

Český svaz ochránců přírody 250 250

Centrum 83 o.s. 20 20

NF Slunce pro všechny 20 20

Správa zdravot.a soc.služeb Cheb 20 20

Klub Auxilium 10

Dětské centrum Znojmo 20

Hvězda SKP Pardubice 20

Zdravá rodina o.s. 52

FN Ostrava 73

OS Na podporu aktivit v NB Romská sekce 20

Srdíčko 20

Akráda o.s. 10

Klik a přijďte k nám o.s. 20

Obec Horní Dubenky 20

Dětský domov Zlín 20

Nadace pro podporu lidí s mentálním postižením 20

Dialog Jesenius 1 287 Dětské centrum Znojmo 20

Hub o.s. 850

-Centrum LADA o.s. - 20

ČSOP Vlašim o.s. - 20

Logo o.s. - 20

Česká maltézská pomoc řádu maltézských rytířů o.p.s. - 20

Dílny tvořivosti o.s. - 20

Nadace 700 let města Plzně - 20

NF PROS - 20

Pohlazení o.s. - 20

Rytmus Benešov o.s. - 20

SONS Frýdek Místek - 20

VOLNO o.s. - 10

Dům dětí a mládeže Sluníčko p.o. - 10

Oblastní charita Kutná Hora - 10 Total 15 862 13 624

(29)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

4.6. Unbilled deliveries

Unbilled deliveries represent estimated costs for services related to the Foundation’s financial statements. As at 31 December 2009 unbilled deliveries included also estimated costs for the Foundation´s portfolio administration.

4.7. Corporate income tax

Corporate income tax is CZK 0 thousand for the 2010 and 2009 tax periods, respectively. In 2010 and 2009, the Foundation’s income was generated from sources of the Foundation’s capital registered in the Foundation Register and this income is exempt from income tax.

4.8. Accrued expenses

Accrued expenses comprise costs for the maintenance of accounting books and records for the period 09-12/2010, costs for portfolio administration and costs for cooperation with the Václav and Livie Klaus Endowment Fund.

4.9. Expenses

The Foundation does not have its own employees, all of its activities are provided by the employees of Česká spořitelna, a.s. The costs related to the Foundation’s activities are subsequently recharged to the Foundation.

4.10. Revenues

Interest income includes interest on current accounts and term deposit of the Foundation.

Foreign exchange gains include realized and unrealized foreign exchange gains from swap transactions and foreign currency translations. Proceeds from short-term financial assets include income from swap transactions.

Proceeds from sale of securities include the selling price of securities sold by the Foundation during the accounting period.

Proceeds from long-term financial assets include income from dividends and income from coupons attached to securities owned by the Foundation. (in CZK thousands) 31 December 2010 31 December 2009

Advertising 190 151

Costs of services, rental, phone charges (Česká spořitelna, a.s.) 182 180

Maintenance of accounting and tax books, legal advisory 79 56

Other services 10 51

Recharged wage costs (Česká spořitelna, a.s.) 502 411

Bank fees, securities administration (Česká spořitelna, a.s.) 100 52

Foreign exchange losses, finance costs 1 171 156

Impairment of portfolio 1 091 1 984 Sold securities 120 685 165 045 Total 124 010 168 086 (in CZK thousands) 31 December 2010 31 December 2009 Interest income – current accounts, term deposits 240 794

Proceeds from short-term financial assets 93 130 Exchange rate gains 297 1 130 Proceeds from sale of securities 131 452 167 515 Proceeds from long-term financial assets (dividend and coupon income) 14 052 15 039 Total 146 134 184 608

(30)

According to the Statute of the Foundation, the annual administrative costs of the Foundation must not exceed 2.5 percent of the balance of the Foundation’s capital as at 31 December of the year. The limit was not exceeded in 2010.

Total administrative costs of the Foundation were CZK 963 thousand.

The financial statements were prepared on 30 May 2011

Signatures of Statutory Body:

Mgr. Klára Gajdušková JUDr. Petr Liška

Chairwoman of the Administration Board Vice-chairman of the Administration Board

Signature of person responsible for accounting:

Ing. Olga Tesařová

Contents.

■

Contents

3

4

4

5

5

6

9

12

15

16

16

16

17

18

20

22

Dear friends,

■

Financial Report for

■

Helping People in Need: Senior Citizens

”According to recent statistics, over 335 000 people in the Czech Republic are over

80. Each year, more than 400 men and women over 60 commit suicide as a result

of depression, loss of self-esteem and sense of purpose, as well as feeling like they are

a burden to their families and society. Programmes which encourage an active life-style

are often the only motivation for the elderly to stay in touch with the community, and

the only chance to retain or develop skills which help them improve their mental and

physical condition.“

HELPING THOSE IN NEED: SENIOR CITIZENS

”… To us, seniors between 65 to 72 years, the course gave a chance to master

the minimum of the mystery of computers and the internet. It’s a wonderful thing

and it will help us in our practical life, give us self-confidence and enrich our golden

years.” With many thanks

HELPING THOSE IN NEED: SENIOR CITIZENS

■

Helping Those in Need: Drug Addiction

”For the past nine years, the Česká spořitelna Foundation has been helping us provide

services for prevention and treatment of young people and specific groups for which

services in the standard system of care are either completely inaccessible or inadequate.

We applaud your courage to “invest” into this problematic area which is still on the

periphery of society’s interest and where state assistance is not able to address the issue

adequately and effectively.

We consider our cooperation and your continuous support not only as an expression of

trust, but also as an appreciation of our efforts. Your support to the challenging work in

our therapeutic communities, where we face permanent existential uncertainty, cannot

be appreciated enough.“

HELPING THOSE IN NEED: DRUG ADDICTION

■

”It has never been our goal to defend “addicts”, or make their life easier. Our shared

phi-losophy has always been to enable them – with their own will and with our help – to

suc-cessfully overcome their addiction and succeed in social rehabilitation. To us, a “cured”

client is one who has successfully gone through the treatment process, after which he/she

is able to abstain from any use of narcotics and live a normal life – that is work, pay taxes

and debts resulting from the previous drug career, study, raise children, establish “normal”

relationships with drug-free partners and have healthy family relations. Mothers should

be able to take proper care of their children and give them loving homes…The key principle

of our treatment is to provide living conditions during therapy which are similar to those

in the outside world. We use a range of activities and psychotherapeutic methods like group

therapy, individual therapy, regime and rules, family and parent counselling, training

and education, work therapy, leisure time activities, video training, etc. In addition, we

help our clients work through and resolve the negative social consequences of their drug

use: we register them with the relevant employment office, help them acquire new personal

documents (ID card, health insurance), we act as intermediary for contacts with the police,

courts, probation officers. Our objective is to resolve their past criminal problems while

under treatment in the community. Finally, we help them deal with health problems by

ar-ranging necessary psychiatric and other special medical care.“

HELPING THOSE IN NEED: DRUG ADDICTION

”…I am still clean. I’ve been abstaining for the past year and seven months… I know what

they say: “… you will never stop fighting with it for the rest of your life. Once an addict,

always addict.” Not in my case, believe me. I do not feel tempted any more, do not miss it,

in fact, I don’t think about it and am not scared of it any more, have no feelings associated,

I simply don’t care about drugs….. all drugs without exception, I mean I haven’t had any

drug except alcohol for the last year and seven months. I do not even care if I see somebody

“smashed” on the street, feel no pity anymore. I have quit completely, it’s the END. I hope

I will never come back here, this is definitely behind me. Take care and have fun."

■

Sustainable Development